Intermediate Capital Group PLC/media/Files/I/ICGAM/results... · 2018-05-29 · Intermediate Capital Group plc 27 Financial Highlights Pre-tax profit* of £108.8m vs £105.1m in H1

Intermediate Capital Group plc and Intermediate Capital Managers Limited are authorised and regulated in the United Kingdom by the Financial Services Authority

Intermediate Capital Group PLCHalf Year Results

30 September 2011

Intermediate Capital Group plc 2

Highlights

� Operational highlights

� €1.1bn first closing of ICG Europe Fund V, including ICG’s €500m co-investment

� £242m final close on Longbow UK mezzanine fund, including ICG’s £50m commitment

� AUM of €12.0bn vs €11.8bn at 31/03/11

� Portfolio companies showing resilience, low provisions in H1 12

� Financial highlights

� FMC Profit before tax: £17.1m vs £16.9m in H1 11

� IC Profit before tax*: £91.7m vs £88.2m in H1 11

� Group Profit before tax*: £108.8m vs £105.1m in H1 11

� Fair valuing equity investments leads to £101m uplift to reserves

� Interim dividend of 6 pence unchanged from last year

* Including £8.1m, positive impact of fair value movements on derivatives held for hedging purposes (H1 11: £8.5m)

Intermediate Capital Group plc

Portfolio Update


Investment portfolioPerformance vs. prior year

Percentage of assets performing at or above prior year

0%

10%

20%

30%

40%

50%

60%

70%

80%

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11


Top twenty assets

Private clinic manager France →

Textile rental and cleaning France ↑

Inspection, certification and technological services Spain ↑

Waste management solutions provider UK ↑

Patent & legal services UK ↑

Airport operator UK ↑

Elderly care homes Sweden ↑

Speciality chemicals for the construction industry France ↑

Share registry and fund administration services Australia ↑

Telephone networks US →

Supplier of fire protection systems and services Germany →

Home delivery of frozen foods Germany ↑

PVC Flooring France ↑

Cattle tagging UK ↑

Drug development and manufacturer France ↑

Diversified fund of senior loans Europe n/a

Provider of services and technical solutions for utilities Germany ↑

Auto Equipment France ↓

Tour operator Spain ↑

Leisure & entertainment Germany ↑

Business Country Vs Last Year


Trend in Provisions for Portfolio Companies

Loan Stocks

0

50

100

150

200

250

H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12

£m

Gross Provisions Write-backs


Exits

� Slow down in exits due to market volatility and less liquidity to support new transactions

� Nine exits including BvD, Tegel, Au Bon Pain, Veda and Vships

� £188.5m of repayments

� £58.6m of realised PIK

� £10.1m of realised capital gains and £12.1m of unrealised gains on exits

� We expect realisation to slow down but we have a number of processes on track


New Investments

� £136m of new investments

� Reinvestment in Tegel and BvD

� New investment in HMG and CNIG

� Cautious approach to investments given economic uncertainty


New Lending vs Repayments*

*6 months moving average

0

200

400

600

800

1,000

1,200

1,400

Mar-

02

Sep-

02

Mar-

03

Sep-

03

Mar-

04

Sep-

04

Mar-

05

Sep-

05

Mar-

06

Sep-

06

Mar-

07

Sep-

07

Mar-

08

Sep-

08

Mar-

09

Sep-

09

Mar-

10

Sep-

10

Mar-

11

Sep-

11

New Lending Repayments

£m


Market Update


LBO MarketSignificant decrease in High Yield issuance in Q3

Source: S&P

European High Yield Issuance

0

5

10

15

20

25

30

35

40

45

50

199619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

11 H1

2011

Q3

€bn


LBO MarketSlowdown in leveraged loans issuance expected in Q4

Source: S&P

0

20

40

60

80

100

120

140

160

180

200020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

11 H1

2011

Q3

€bn


Price of loans attractive again

Source: S&P, European Secondary Pricing Source: Markit Loans

54

58

62

66

70

74

78

82

86

90

94

98

102

Dec

-02

Mar-03

Jun-03Se

p-03

Dec

-03

Mar-04

Jun-04Se

p-04

Dec

-04

Mar-05

Jun-05Se

p-05

Dec

-05

Mar-06

Jun-06Se

p-06

Dec

-06

Mar-07

Jun-07Se

p-07

Dec

-07

Mar-08

Jun-08Se

p-08

Dec

-08

Mar-09

Jun-09Se

p-09

Dec

-09

Mar-10

Jun-10Se

p-10

Dec

-10

Mar-11

Jun-11Se

p-11

Market Flow names


LBO MarketLBO Volumes

Source: S&P

0

50

100

150

200

250

300

200020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

11 H1

2011

Q3

€bn


LBO MarketEuropean Significant Private Equity dry powder remains

0

20

40

60

80

100

120

140

160

180

200

2005 2006 2007 2008 2009 2010 Nov-11

€bn

Dry powder Funds raised

Source: Preqin


LBO MarketEuropean leveraged loans and HY bonds maturity profile

0

10

20

30

40

50

60

2011 2012 2013 2014 2015 2016 2017 2018

€bn

European CLOs Total Funded Amount by End of Reinvestment Period Leveraged Loan High Yield Bonds

Source: JPMorgan Structured Finance Research, INTEX, S&P European Leveraged Loan Index (ELLI), Barclays Capital for HY bonds, as of July 2011


LBO MarketEuropean banks need to degear

Source: S&P

Total European Bank Assets / GDP

0%

50%

100%

150%

200%

250%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


LBO MarketInstitutional Loan and HY markets, Europe vs US

US Institutional Loan and HY markets US Institutional Loan and HY markets US Institutional Loan and HY markets US Institutional Loan and HY markets

0

200

400

600

800

1,000

1,200

1,400

1,600

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

$bn

$bn

$bn

$bn

Bonds Loans

Europe Institutional Loan and HY markets Europe Institutional Loan and HY markets Europe Institutional Loan and HY markets Europe Institutional Loan and HY markets

0

200

400

600

800

1,000

1,200

1,400

1,600

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

$bn

$bn

$bn

$bn

Bonds Loans

Source: S&P LCD, Deutsche Bank


Commercial Real Estate MarketEuropean Commercial Real Estate debt maturity profile

0

50

100

150

200

2011 2012 2013 2014 2015 2016 2017

€bn

Source: CBRE


Commercial Real Estate MarketEuropean CMBS issuance

0

10

20

30

40

50

60

70

80

90

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

YTD

€bn

Source: CBRE


Fund Management


Fund management priorities unchanged since year end

� Sales team

� Grow core business

� Mezzanine (ICG Europe V, then US and Asia III)

� Credit Funds (High Yield and European senior debt)

� Develop new opportunities

� Real Estate mezzanine and debt


Fund V

� €1.1bn first closing of ICG Europe Fund V, including ICG’s €500m co-investment, in September

� Significant achievement in difficult fundraising market

� 15 investors

� existing and new

� diversity, by investor type and geography, shows broad appeal

� Good progress towards €2bn target

� First investment in BvD in September


Longbow

� £242m final close on Longbow UK mezzanine fund, including ICG’s £50m commitment, ahead of £200m target

� ICG platform instrumental in fundraising success

� Fund is 25% invested and seeing increased dealflow

� Markets dynamics favourable

� Strong growth potential


-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY08 FY09 FY10 FY11 H1 12

€m

Mezzanine funds Credit funds

Third party funds under management

Note: ICG financial year ends 31st March.


Financial Review


Financial Highlights

� Pre-tax profit* of £108.8m vs £105.1m in H1 11

� FMC Profit before tax: £17.1m vs £16.9m in H1 11

� IC Profit before tax*: £91.7m vs £88.2m in H1 11

� Third Party AUM of €9,165m vs €9,036m at 31/03/11

� Investment portfolio £2,414m vs £2,424m at 31/03/11

� £117m of debt extension and additional £75m debt facility from new lender; Balance sheet headroom of c. £615m**

� Cash Core Income of £63.3m vs £43.8m in H1 11; Interim dividend of 6p unchanged from last year

*Including £8.1m positive impact of fair value movements on derivatives held for hedging purposes; H1 11: 8.5m

** Adjusted for signed exits where proceeds have not been received in cash and a £75m new debt line


Impact of Fair Value Accounting

WARRANTS

INCREASE £26m CAPITAL

GAINS

ORDS LOAN STOCK

AMORTISEDCOST

VALUE OF ORDSINFLUENCING

IMPACT OF POSSIBLE

IMPAIRMENT EVENT

IMPAIRED £28mCHARGED

THROUGH IMPAIRMENTS

MEZZ/PIK

AMORTISEDCOST

NIL

PRE APR ‘10

AFS

INCREASE OF £101m

RESERVES

RECYCLED THROUGHP&L UPON

REALISATION

POST APR ‘10

FVTPL

INCREASE £1m CAPITAL

GAINS

FVTPL


Segmental reporting

79.779.779.779.774.574.574.574.583.683.683.683.6IC Profit*IC Profit*IC Profit*IC Profit*

105.1105.1105.1105.1

8.5

69.4

(53.1)

(33.0)

1.4

95.0

16.916.916.916.9

(23.3)

1.1

39.1

81.281.281.281.2108.8108.8108.8108.8Profit before taxProfit before taxProfit before taxProfit before tax

(12.3)

31.9

(17.8)

(34.0)

9.6

84.8

19.019.019.019.0

(26.7)

3.0

42.7

8.1

37.6

(28.4)

(26.2)

2.1

98.5

17.117.117.117.1

(28.0)

2.2

42.9

FVM derivatives

Admin expenses

Impairments

Net capital gains

Div & other income

Net Interest Income

Admin expenses

Other income

FM ProfitFM ProfitFM ProfitFM Profit

Fee incomeFund Fund Fund Fund

ManagementManagementManagementManagementCompanyCompanyCompanyCompany

InvestmentInvestmentInvestmentInvestmentCompanyCompanyCompanyCompany

Group Group Group Group

H1 12H1 12H1 12H1 12 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11£m £m £m £m

* Excluding FMV Derivatives


9,1659,1659,1659,1659,0369,0369,0369,036

276276276276

35353535225225225225

4444

591591591591

7,000

8,000

9,000

10,000

Mar-11 NewMezzanine

RealisationsMezzanine

New CFM RealisationsCFM

FX Sep-11

€m

Third party AUM

� Third party AUM up due to New Mezzanine funds


Third Party Fee Income

0

10

20

30

40

50

60

FY 08 FY 09 FY 10 FY 11 H1 10 H1 11 H2 11 H1 12

£m

Mezzanine Funds CFM Funds


16.916.916.916.9

3.03.03.03.0

1.71.71.71.7

3.83.83.83.8

1.11.11.11.1

17.117.117.117.1

0

5

10

15

20

25

H1 11 Fee income Other income IncentiveSchemes

OperatingCosts

H1 12

£m

Fund Management Company

� Profit before tax of £17.1m due to higher fee income


� Profit before tax and fair value adjustments at £91.7m

Investment Company

88.288.288.288.2

91.791.791.791.7

0.40.40.40.4

24.724.724.724.7

5.25.25.25.2

3.53.53.53.5

31.831.831.831.8

0.70.70.70.7 1.61.61.61.6

0

20

40

60

80

100

120

H1 11 NII Div & otherincome

Incentiveschemes

OperatingExpenses

Impairment Net CapitalGains

FVderivatives

H1 12

£m


Long terms provisions

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

FY

95

FY

96

FY

97

FY

98

FY

99

FY

00

FY

01

FY

02

FY

03

FY

04

FY

05

FY

06

FY

07

FY

08

FY

09

FY

10

FY

11

H1

12

� Net provisions (as a % of opening book) at very low levels excluding provision relating to loan stock

Average pre-crisis: 2.4%


Operating costs (Excluding incentive schemes)

0

5

10

15

20

25

30

35

40

45

50

FY 08 FY 09 FY 10 FY 11 H2 10 H1 11 H2 11 H1 12

£m

Salaries Administrative costs One off charge re 20 Old Broad St lease

� Operating costs broadly flat


Incentive Schemes Excluding MTIS on gains (1)

H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11

FY10 Awards 2.1 5.8 3.8

FY11 Awards 4.0 5.4 5.5

FY 12 Accruals 7.2

Total 13.3 11.2 9.3

H1 12H1 12H1 12H1 12

FY 11FY 11FY 11FY 11FY 12FY 12FY 12FY 12

Old Schemes 6.3 10.6 12.7

H1 12H1 12H1 12H1 12 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11

£m£m£m£m

Total 19.6 21.8 22.0


Incentive Schemes Excluding MTIS on gains (2)

FM CoFM CoFM CoFM Co Inv CoInv CoInv CoInv Co

FY10 Awards 2.1 1.6 0.5

FY11 Awards 4.0 3.5 0.5

FY 12 Accruals 7.2 4.0 3.2

Total 13. 3 9.1 4.2

H1 12H1 12H1 12H1 12

SegmentalSegmentalSegmentalSegmentalGroupGroupGroupGroup

Old Schemes* 6.3 6.3

H1 12H1 12H1 12H1 12 FM CoFM CoFM CoFM Co Inv CoInv CoInv CoInv Co

£m£m£m£m


31 March 201131 March 201131 March 201131 March 2011

£m£m£m£m

Balance Sheet

Loans & Investments 2,545 2,575

Net current assets (liabilities) 122 (76)

2,6672,6672,6672,667 2,4992,4992,4992,499

Shareholders’ Funds 1,366 1,251

Borrowings 1,301 1,248

2,6672,6672,6672,667 2,4992,4992,4992,499

Annualised ROE 13.0% 10.8%

Gearing Ratio 95% 100%

Debt Facilities 1,767 2,033

Headroom 615 785

30 Sept 201130 Sept 201130 Sept 201130 Sept 2011£m£m£m£m

Debt maturity profile


SecuritisationPrivate Placements Bank Facilities


Cash Flow Analysis

139.8139.8139.8139.8Free Cash flowFree Cash flowFree Cash flowFree Cash flow

(25.2)

45.4

Repayments & recoveries

Cash flow relating to Capital Gains

Tax & others

Operating cash flow

H1 12 H1 12 H1 12 H1 12 £m £m £m £m

372.7372.7372.7372.7642.9642.9642.9642.9

217.3

79.3

90.6

368.6

146.6

132.8

FY 11FY 11FY 11FY 11 FY 10FY 10FY 10FY 10

(41.4) (5.1)

46.4

83.2

Net debt reduction

Dividend

New investments

236.7

37.8

98.2

40.6

315.9

(14.5)

286.410.2

161.0

63.363.363.363.3 372.7372.7372.7372.7106.7106.7106.7106.7Cash Core IncomeCash Core IncomeCash Core IncomeCash Core Income 115.1115.1115.1115.1


Financial outlook

� Fund Management

� New funds will drive fee income

� IC

� Reduced visibility in current environment

� Realisation expected to slowdown but some processes ongoing

� Resilient NII

� Additional new investments but remain unpredictable

� Provisions could potentially increase from H1 12, but we have in excess of £500m of provisions on balance sheet


Conclusion


Appendix


Top ten equity assets

Patent & legal services UK ↑

Fixed satellite services USA ↑

Livestock identification systems France ↑

Home delivery of frozen foods Germany ↑

PVC Flooring France ↑


Software solutions Italy ↑

Utilities Netherlands ↑

Inspection, certification and technological services Spain ↑

Business services Belgium ↑

Business CountryVs Last

Year


Top ten PIK assets

Airport operator UK ↑

Private clinic manager France →


Security services Italy ↑

Credit Bureau Australia →

Cinema owner and operator Australia ↓

Catering Services UK ↑

Drug development and manufacturer France ↑

Elderly care homes Sweden ↑

Restaurants UK ↑

Business Country Vs Last Year


Valuation of equity

� Adopted Fair Value methodology for equity investments

� Only applies to warrants and unlisted shares

� AFS assets via Available For Sale reserves

� FVTPL (warrants, recent equity) via P&L

� Loan stocks held at amortised cost; fair value impacts P&L through

impairments

� Neutral impact on profit before tax

�Unrealised Capital gains of £27.4m on FVTPL

�Provision of £28.0m on loans stocks

�Tax benefit on provisions, unrealised capital gains untaxed

� £100.6m uplift to reserves on equity investments (AFS assets)

� Equity book is now valued at £698m

�£398m of unlisted shares and warrants; £65m FVTPL; £333m AFS

�£300m of loan stocks/shareholder loans


Accounting treatment going forward (1/2)AFS & FVTPL

� AFS

� Primarily equity assets in transactions pre March 2010

� Until March 2014

� will go through P&L via capital gains line when realised

� In the meantime, movements in value will go through reserves

� After March 2014

� “frozen in reserves”

� Impairments via reserves

� FVTPL

� Primarily equity assets in transactions from March 2010 onwards and warrants

� All movement in value through capital gains line

� Valuation Methodology

� As part of the Quarterly Portfolio Review

� Based on multiples of listed comparators as (at end of February, May, August and November) and relevant profit measure (EBITDA for most)


Fair Value Accounting Top AFS and FVTPL assets

� AFS assets

� FVTPL assets

CPA Patent & legal services UK £60.7m

Intelsat Fixed satellite services USA £59.2m

Allflex Livestock identification systems UK £47.9m

AAS Link Share registry and fund administration services Australia £19.9m

Menissez Bread Manufacturing France £15.2m

Elior Catering France £13.9m

Eismann Home delivery of frozen foods Germany £12.5m

Lecta Printing Italy £10.8m

Company Business Country Value at 30/09/2011

Gerflor PVC flooring France £12.4m

Baxter Storey Catering UK £9.6m

Link/AAS Share registry and fund administration services Australia £9.5 m

CPA Patent & legal services UK £7.2m



Accounting treatment going forward (2/2)Loan Stock

� Valuation methodology unchanged

� Valued on amortised cost using the effective interest method

� However, when current value of corresponding equity is nil, we believe we should take a closer look at loan stock value, potentially leading to impairments

Van Gansewinkel Utilities Netherlands £21.2m

Eismann Home delivery of frozen foods Germany £21.0m

TeamSystem Software solutions Italy £19.8m

Gerflor PVC Flooring France £19.5m

Applus+ Inspection, certification and technological services Spain £18.6m

BvD Financial Information Belgium £16.0m

TDF Broadcasting infrastructure France £12.6m

Attendo Care homes Sweden £10.8m



Disclosure

� Capital Gains

� Realised capital gains during the period

� Unrealised capital gains on exits signed during the period but not yet completed

� Fair value increase on unrealised equity investments

� Fair value decrease on unrealised equity investments

� Impairments

� Impairments relating to loan stock will be flagged

� Valuation

� Top 10 equity investments

� Large AFS, FVTPL & Loan Stock assets


LBO MarketEuropean CLOs - amount within reinvestment period

€0

€10

€20

€30

€40

€50

€60

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Year

Am

ount

(€B

)

Source: JPMorgan Structured Finance Research, INTEX,


Credit Fund Management performance Leveraged loans

ICG Senior Secured Loan Performance* vs.

Credit Suisse Western European Loan Index

* Composite of all discretionary market value funds managed by ICG

ICG Loan Default Ratevs.

S&P Speculative Grade* Default Rate

Source: ICG, S&P, 30 September 2011Source: ICG per 30 September 2011

65%

75%

85%

95%

105%

115%

125%

135%

Nov

-05

Mar

-06

Jul-0

6

Nov

-06

Mar

-07

Jul-0

7

Nov

-07

Mar

-08

Jul-0

8

Nov

-08

Mar

-09

Jul-0

9

Nov

-09

Mar

-10

Jul-1

0

Nov

-10

Mar

-11

Jul-1

1

ICG Marketvalue Loan Composite CS Western European Loan Index

0.62%

0.00%

0.69%

0.00%

0.51%

0.00% 0.10% 0.00%

0.78%

6.49%

1.03%0.61%

2.78%

1.52% 1.50%1.74%

1.47%

5.77%

14.76%

4.00%

Not

Ava

ilabl

e

0%

2%

4%

6%

8%

10%

12%

14%

16%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD

ICG Loan Default Rate S&P Loan Default Rate (based on Issuers)


Credit Fund Management performance High Yield

ICG High Yield Composite* vs.

Merrill Lynch High Yield Index (HEAG)

ICG High Yield Default Ratevs.

S&P High Yield Default Rate

Source: ICG, S&P, 30 September 2011Source: ICG per 30 September 2011

* Represents high yield assets managed across all relevant funds

0.77%

2.52%

3.22%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%0.48%

0.10% 0.00%

2.02%

7.34%

12.90%

3.42%

1.23%

0.56%

2.07%

0.95%

2.56%

1.08%0.88%

7.50%

-1%

1%

3%

5%

7%

9%

11%

13%

15%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD

ICG High Yield Default Rate S&P High Yield Default Rate

65%

85%

105%

125%

145%

165%

185%

205%

225%

Nov

-00

Jul-0

1

Mar

-02

Nov

-02

Jul-0

3

Mar

-04

Nov

-04

Jul-0

5

Mar

-06

Nov

-06

Jul-0

7

Mar

-08

Nov

-08

Jul-0

9

Mar

-10

Nov

-10

Jul-1

1

ICG European High Yield Composite ML High Yield Index


Top quartile Private Equity performance

Net Money Multiple

Source: ICG/Venture Economics/ThompsonOne as of 30 June 2011

1.3x

1.7x1.6x

1.2x1.3x

1.4x

0.70x

0.90x

1.10x

1.30x

1.50x

1.70x

1.90x

1998 2000 2003 2006 2008 2008

Net Money Multiple

ICG Top Quartile PE

1998 Fund1998 Fund1998 Fund1998 Fund2nd

Quartile

2000 2000 2000 2000 FundFundFundFundTop

Quartile


Quartile


Quartile

IMP IMP IMP IMP 2008 2008 2008 2008 FundFundFundFundTop

Quartile

RF 2008 RF 2008 RF 2008 RF 2008 FundFundFundFundTop

Quartile


Mezzanine and Growth Capital Funds Fee structure

Funds in investment periodFunds in investment periodFunds in investment periodFunds in investment period

20 % of 20

over 8

1.25% on

invested92%Mar-2011€1.25bn€1.75bnEF06

25 % of 20

over 8

2.0% on

invested91%Apr-2008$0.3bn$0.3bnICAP 05

100%

84%

% Invested% Invested% Invested% Invested

1.5% on

invested

1.5% on

invested

Main feeMain feeMain feeMain fee

28% of 20

over 8

20 % of 20

over 8

CarryCarryCarryCarry

Sep-2006€0.67bn€1.42bnEF03

Feb-2010€0.13bn€0.13bnIMP08

End of investment periodEnd of investment periodEnd of investment periodEnd of investment periodEquityEquityEquityEquitySizeSizeSizeSizeFundFundFundFund

Funds in realisationFunds in realisationFunds in realisationFunds in realisation

77%

35%

% Invested% Invested% Invested% Invested

1.5% on invested

1.5% on committed equity

Main feeMain feeMain feeMain fee

Oct-2012€0.64bn€1.16bnRF08

April-2013$0.6bn$0.6bnICAP 08

End of investment periodEnd of investment periodEnd of investment periodEnd of investment periodEquityEquityEquityEquitySizeSizeSizeSizeFundFundFundFund

- 1.5% on committed equity Sept -2016TBCTBCICG V

Intermediate Capital Group plc 56Intermediate Capital Group plc 56Intermediate Capital Group plc 56

ICG Mezzanine Fund 2003 Highlights

SummarySummarySummarySummary

Gross IRRMoney MultipleAverage LifeNet IRRNet MM

Assets

Cost Invested

Money Multiples/IRR

Distribution

InvestmentsInvested Capital

CapitalInvested

PortfolioPortfolioPortfolioPortfolio

ExitsExitsExitsExits

PerformancePerformancePerformancePerformance

Levered Levered Levered Levered

59€1.38bn1.5x / 18%€828.1m

80€1.67bn

€1.34bn100%

14%1.4x 50 months15%1.6x

Source: ICG, as at 30 September 2011


ICG European Fund 2006 Highlights


11%1.3x38 months8%

1.3x

Gross IRR

Gross Money Multiple

Average Life

Net IRR

Net MM

6€253m1.7x / 23%€46m

47€1.6bn

€1.75bn92%

Assets

Cost Invested

Money Multiples/ IRR

LP Distribution

Investments

Invested Capital

CapitalInvested






ICG Recovery Fund 2008 Highlights


Gross IRRMoney MultiplesAverage LifeNet IRRNet MM

AssetsValue InvestedMoney Multiples/IRRDistribution


CapitalInvested




17%1.3x19 months11%1.2x

1€4.3m3.6x/66%€0

6€886m

€1.16bn77%


Intermediate Capital Group plc 59Intermediate Capital Group plc 59

ICG Minority Partners Fund 2008 Highlights


Gross IRRMoney MultiplesAverage Life

Net IRR

Net MM



CapitalInvested




29%1.6x26 months21%1.5x

1€40m2.1x / 55%€72m

4€121m

€132m84%



Intermediate Capital Asia Pacific Mezzanine Fund 2005Highlights



Net IRR

Net MM



CapitalInvested




13%1.4x43 months11%1.4x

4$131m1.3x / 15%$162m

8$277m

$300m91%



Intermediate Capital Asia Pacific Fund 2008Highlights



Net IRR

Net MM



CapitalInvested




3%1.1x22 months5%1.1x

1$21.7m1.4x / 16%$74m

5$224m

$600m35%



Fee Income

Mezzanine Fund Management fee income

17.2 16.2 16.2

Credit Fund Management fee income 13.1 13.8 9.9

Third Party Funds fee income 30.3 30.0 26.1

Investment Company fee income 12.6 12.7 13.0

Total fee income 42.9 42.7 39.1

H1 12H1 12H1 12H1 12 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11£m£m£m£m


Mezzanine & Growth Capital FundsThird Party Fee Income

H1 12H1 12H1 12H1 12 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11

Mgmt Fee

Carried Interest

Mgmt Fee

Carried Interest

Mgmt Fee

Carried Interest

Investing Europe 2.0 0.0 9.8 0.0 7.9 0.0

Investing Asia 2.6 0.0 2.6 0.0 2.8 0.0

Realisation Europe 9.7 2.1 2.9 0.0 3.2 1.3

Realisation Asia 0.8 0.0 0.9 0.0 1.0 0.0

Total 15.1 2.1 16.2 0.0 14.9 1.3

£m£m£m£m


Credit FundsFee Income

Senior Fees 4.3 3.6 3.2

Junior Fees 7.5 9.8 6.7

Performance Fees 1.3 0.4 -

Total 13.1 13.8 9.9



Gains on Investments

Realised gains 10.1 31.3 28.9

Unrealised gains 32.0 15.3 57.9

Total gains 42.1 46.6 86.8

MTIS (4.5) (13.6) (17.4)

Net gains 37.6 33.0 69.4



Impairments

Mezzanine and equity investment

Gross impairment 39.6 35.5 54.3

Recoveries (11.2) (17.7) (1.2)

Net impairment 28.4 17.8 53.1



Pre-tax Profits, Earnings Per Share & Dividends

Pre tax profit excluding FV £100.7m £93.5m £96.6m

Pre tax profit £108.8m £81.2m £105.1m

Net profit £85.1m £60.6m £67.5m

EPS 21.6p 15.4p 17.2p

DPS 6.0p 12.0p 6.0p

H2 11H2 11H2 11H2 11 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11


Cash Core Income

* adjusted for FV movements of derivatives held for hedging ** Net of MTIS

0

20

40

60

80

100

120

FY 08 FY 09 FY 10 FY 11 H1 11 H2 12 H1 12

£m

Cash Core Income Calculation:Cash Core Income Calculation:Cash Core Income Calculation:Cash Core Income Calculation:

Pre tax profit* £100.7m

Less Capital Gains** £(37.6)m

Plus provisions £28.4m

Less Accrued PIK** £(77.0)m

Plus PIK realised** £48.8m

Cash Core Income £63.3m

Disclaimer

Important Notice

The materials being provided to you are intended only for informational purposes and convenient reference and may not be relied upon for any purpose.

This information is not intended to provide, and should not be relied upon, for accounting, legal, tax advice or investment recommendations. You should consult your tax, legal, accounting or other advisors about the issues discussed herein. Although information has been obtained from and is based upon sources that Intermediate Capital Group plc ("ICG plc") considers reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, projections and estimates constitute the judgement of the authors as of the date of the document and are subject to change without notice. ICG plc excludes all liability and therefore accepts no responsibility for any loss (whether direct or indirect) arising for any action taken or not taken by anyone using the information contained therein.

These materials are not intended as an offer or solicitation with respect to the purchase or sale of any security or investment interest and may not be relied upon in evaluating the merits of investing in these securities or investment interests. These materials are not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

Neither ICG plc or any of its affiliates makes any representation or warranty, express or implied as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation whether as to past or future performance.

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This communication is limited to and directed to those persons invited to the presentation. It is therefore only directed at professional clients, as defined by the Financial Services Authority. Any other persons should not seek to rely upon the information contained herein. Collective investment schemes referred to herein are not regulated for the purposes of the UK’s Financial Services and Markets Act 2000 and are not available to members of the general public.

ICG plc is authorised and regulated in the United Kingdom by the Financial Services Authority. Intermediate Capital Managers Limited is a wholly-owned subsidiary of ICG plc and is also authorised and regulated in the United Kingdom by the Financial Services Authority.

Documents

Intermediate Capital Group PLC/media/Files/I/ICGAM/results... · 2018-05-29 · Intermediate Capital Group plc 27 Financial Highlights Pre-tax profit* of £108.8m vs £105.1m in H1