3i Group Plc · LSE:III
3i — Shareholder Meeting (July 2004)
53 slides from 3i's shareholder meeting presentation, Jul 7, 2004
Slide 1: Annual General Meeting 7 July 2004
Annual General Meeting 7 July 2004 1
Slide 2: Annual General Meeting 7 July 2004
Annual General Meeting 7 July 2004 2
Slide 3: Baroness Hogg, Chairman
Baroness Hogg Chairman 3
Slide 4: The Board of Directors
The Board of Directors 4
Slide 5: Dr John Forrest
Dr John Forrest 5
Slide 6: Christine Morin-Postel
Christine Morin-Postel 6
Slide 7: Rod Perry
Rod Perry 7
Slide 8: Danny Rosenkranz
Danny Rosenkranz 8
Slide 9: Tony Brierley
Tony Brierley 9
Slide 10: Brian Larcombe
Brian Larcombe 10
Slide 11: Oliver Stocken
Oliver Stocken 11
Slide 12: Michael Queen
Michael Queen 12
Slide 13: Martin Gagen
Martin Gagen 13
Slide 14: Fred Steingraber
Fred Steingraber 14
Slide 15: Philip Yea
Annual General Meeting 7 July 2004 Philip Yea A wide range of experience in industry and private equity Formerly with Investcorp Before that Finance Director of Diageo Proposed appointment widely welcomed by shareholders and analysts 15
Slide 16: "3i delivers a strong overall performance."
Annual General Meeting 7 July 2004 “3i delivers a strong overall performance.” 16
Slide 17: Share price since flotation
Annual General Meeting 7 July 2004 Share price since flotation 3i Group 2000 FTSE 100 FTSE All Share 1800 FTSE Small Cap (exc IT) 1600 1400 1200 1000 800 600 400 200 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Datastream 17
Slide 18: 3i European Barometer Index
Annual General Meeting 7 July 2004 3i European Barometer Index 100 4.5 80 4 60 3.5 40 3 20 Index 0 2.5 GDP growth -20 2 -40 1.5 -60 1 -80 -100 0.5 -120 0 Q2 Q4 Q2 Q4 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1998 1999 2000 2001 2002 2003 2004 18
Slide 19: Investing in 3i - corporate responsibility
Annual General Meeting 7 July 2004 Investing in 3i - corporate responsibility “3i is clearly positioned among the best in the financial services industry.” “It is a real achievement to be one of the Companies that Count.” 19
Slide 20: Annual General Meeting 7 July 2004
Annual General Meeting 7 July 2004 20
Slide 21: Brian Larcombe, Chief Executive
Brian Larcombe Chief Executive 21
Slide 22: Performance highlights – year to March 2004
Annual General Meeting 7 July 2004 Performance highlights – year to 31 March 2004 Strategy delivering Significant pick up in investment activity Good flow of realisation profits An overall return of 18.1% 22
Slide 23: Total return by investment product
Annual General Meeting 7 July 2004 Total return by investment product 2004 %* Mid-market buy-outs 22.6% Smaller buy-outs 22.1% Growth capital 26.8% Venture capital (6.0)% * % total return on opening shareholders’ funds attributed to each product 23
Slide 24: Venture capital, Growth capital, Buy-outs
Annual General Meeting 7 July 2004 Venture capital Growth capital Buy-outs 3i’s venture capital Our growth capital 3i’s buy-out business is business is focused on business is focused on focused on the mid and the healthcare, software, high growth companies, smaller buy-out markets communications and
Slide 25: Directories
Annual General Meeting 7 July 2004 Directories 25
Slide 26: Yellow Brick Road
Annual General Meeting 7 July 2004 Yellow Brick Road 44% of company with Yellow EBITDA of €150m Brick Road Debt €1bn Cash back Mediatel €31m to 3i and €224m funds De Telefoongids €65m Fonecta €44m 26
Slide 27: Investing in 3i - our people
Annual General Meeting 7 July 2004 Investing in 3i - our people 27
Slide 28: Investing in 3i - our network
Annual General Meeting 7 July 2004 Investing in 3i - our network Preferred deal flow Investment assessment Added value Enhanced exits Aberdeen, Amsterdam, Barcelona, Birmingham, Boston, Bristol, Cambridge, Copenhagen, Dusseldorf, Frankfurt, Glasgow, Helsinki, Hong Kong, Leeds, London, Lyon,
Slide 29: Strategy
Annual General Meeting 7 July 2004 Strategy Developing the business internationally Building a balanced investment business Using the network as our key competitive advantage Investing in growth companies 6% 12% Buy-outs Growth capital 51% Venture capital Quoted 31% 29
Slide 30: Closing remarks
Annual General Meeting 7 July 2004 Closing remarks “3i is in great shape and is strongly positioned to grow value significantly in the years ahead.” 30
Slide 31: Annual General Meeting 7 July 2004
Annual General Meeting 7 July 2004 31
Slide 32: Michael Queen, Finance Director
Michael Queen Finance Director 32
Slide 33: Financial highlights
Annual General Meeting 7 July 2004 Financial highlights Total return £531m Total return on opening shareholders’ funds 18.1% Net asset value per share 553p Final dividend 8.9p Realised profits on disposal £228m New investment* £979m * New investment includes co-investment funds 33
Slide 34: Total return – key drivers
Annual General Meeting 7 July 2004 Total return – key drivers Strong realisation profits £228m Good portfolio value growth £336m Income slightly lower £234m 34
Slide 35: Balance sheet
Annual General Meeting 7 July 2004 Balance sheet 2003 2004 £m £m Investment assets 3,939 4,326 Other net assets 10 5 3,949 4,331 Net borrowings 1,013 936 Shareholders’ funds 2,936 3,395 3,949 4,331 Gearing 35% 28% 35
Slide 36: Net cash flow - long term trend
Annual General Meeting 7 July 2004 Net cash flow - long term trend £m 2,000 Cash inflow 1,500 Cash outflow Net cash flow 1,000 500 0 -500 -1,000 -1,500 -2,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 for year to 31 March 36
Slide 37: Dividend history
Annual General Meeting 7 July 2004 Dividend history pence 16 14.0 14 13.0 13.0 13.5 12.2 12 11.3 10.3 10 9.2 8.1 8 7.2 6 4 2 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Interim Final 37
Slide 38: Financial summary
Annual General Meeting 7 July 2004 Financial summary Significant improvement in total return Net investor in the second half Strong balance sheet Excellent liquidity 38
Slide 39: Annual General Meeting 7 July 2004
Annual General Meeting 7 July 2004 39
Slide 40: Nigel Jones, Ernst & Young
Nigel Jones Ernst & Young 40
Slide 41: The Resolutions
The Resolutions 41
Slide 42: Resolution: receive Accounts and reports
Annual General Meeting 7 July 2004 Resolution 1 “THAT the Company’s Accounts for the year ended 31 March 2004 and the Directors’ report and Auditors’ report thereon be and they are hereby received and considered” Proxy votes lodged for this Resolution: 98.73% For, 0.54% Discretionary, 0.27% Abstain
Slide 43: Resolution: approve Directors' Remuneration report
Annual General Meeting 7 July 2004 Resolution 2 “THAT the Directors’ Remuneration report for the year ended 31 March 2004 be and it is hereby approved” Proxy votes lodged for this Resolution: 87.88% For, 0.54% Discretionary, 6.25% Abstain and 5.33% Against 43
Slide 44: Resolution: final dividend of 8.9 pence
Annual General Meeting 7 July 2004 Resolution 3 “THAT a final dividend of 8.9 pence per share net be and it is hereby declared, payable to those shareholders whose names appeared on the Register of Members at close of business on 18 June 2004” Proxy votes lodged for this Resolution: 99.45% For, 0.54
Slide 45: Resolution: reappoint Baroness Hogg
Annual General Meeting 7 July 2004 Resolution 4 “THAT Baroness Hogg be and she is hereby reappointed as a Director of the Company” Proxy votes lodged for this Resolution: 99.36% For, 0.55% Discretionary, 0.03% Abstain and 0.06% Against 45
Slide 46: Resolution: appoint Mr P E Yea
Annual General Meeting 7 July 2004 Resolution 5 “THAT Mr P E Yea be and he is hereby appointed as a Director of the Company” Proxy votes lodged for this Resolution: 99.06% For, 0.55% Discretionary, 0.35% Abstain and 0.04% Against 46
Slide 47: Resolution: reappoint Ernst & Young LLP
Annual General Meeting 7 July 2004 Resolution 6 “THAT Ernst & Young LLP be and they are hereby reappointed as Auditors of the Company to hold office until the conclusion of the next General Meeting at which Accounts are laid before the Members” Proxy votes lodged for this Resolution: 98.09% For, 0.5
Slide 48: Resolution: fix Auditors' remuneration
Annual General Meeting 7 July 2004 Resolution 7 “THAT the Board be and it is hereby authorised to fix the Auditors’ remuneration” Proxy votes lodged for this Resolution: 99.21% For, 0.55% Discretionary, 0.02% Abstain and 0.22% Against 48
Slide 49: Resolution 8
Annual General Meeting 7 July 2004 Resolution 8 "THAT executive Directors be and they are hereby authorised to participate in the incentive arrangements described in the notes relating to this Resolution 8 set out in the Notice of Annual General Meeting dated 14 May 2004" Proxy votes lodged for this
Slide 50: Resolution 9
Annual General Meeting 7 July 2004 Resolution 9 To renew the Directors' authority to allot shares (The full text of this Resolution is set out in the Notice of Meeting) Proxy votes lodged for this Resolution: 98.80% For, 0.50% Discretionary, 0.47% Abstain and 0.23% Against 50
Slide 51: Resolution 10
Annual General Meeting 7 July 2004 Resolution 10 Special Resolution To renew the Directors' authority to allot shares for cash (The full text of this Resolution is set out in the Notice of Meeting) Proxy votes lodged for this Resolution: 98.78% For, 0.55% Discretionary, 0.48% Abstain and 0.19% Again
Slide 52: Resolution 11
Annual General Meeting 7 July 2004 Resolution 11 Special Resolution To renew the Company's authority to purchase its own shares (The full text of this Resolution is set out in the Notice of Meeting) Proxy votes lodged for this Resolution: 99.40% For, 0.56% Discretionary, 0.02% Abstain and 0.02% Agai
Slide 53: Annual General Meeting 7 July 2004
Annual General Meeting 7 July 2004 53