3i Group Plc · LSE:III
3i — Shareholder Meeting (July 2011)
45 slides from 3i's shareholder meeting presentation, Jul 6, 2011
Slide 1: Annual General Meeting
Annual General Meeting 6 July 2011 1
Slide 2: Safety announcement
Safety announcement • In the event of an emergency, a two-tone fire alarm will commence • An announcement over the public address system will follow; it will ask you to listen for further instructions • Take a look now for your nearest fire escape sign • Should an evacuation become necessary, instru
Slide 3: Annual General Meeting
Annual General Meeting 6 July 2011 3
Slide 4: Sir Adrian Montague, Chairman
Sir Adrian Montague Chairman 4
Slide 5: The Board of Directors
The Board of Directors 55
Slide 6: Christine Morin-Postel
g . Christine Morin-Postel if =
Slide 7: Alistair Cox
Alistair Cox 7
Slide 8: Richard Meddings
Richard Meddings 8
Slide 9: Kevin Dunn
Kevin Dunn If
Slide 10: Michael Queen
Michael Queen 10
Slide 11: Julia Wilson
Julia Wilson 11
Slide 12: Jonathan Asquith
Jonathan Asquith 12
Slide 13: Willem Mesdag
Willem Mesdag 13
Slide 14: Simon Borrows
Simon Borrows 14
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Slide 16: Priorities
Priorities Retain our financial strength A measured and highly selective approach to investment An absolute focus on improving the performance of every aspect of our business 16
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Slide 18: Michael Queen
Michael Queen 18
Slide 19: Key messages
Key messages Good underlying performance in each of our three business lines Strategic and operational progress to improve the business Investment activity increasing Growth from a conservative financial base 19
Slide 20: Overview of progress since 2009
Overview of progress since 2009 Restructured the balance sheet sooner than anticipated Focused on maximising the value of our existing portfolio Delivering cultural and organisational change Get back on a growth agenda Take advantage of opportunities to grow in a measured way 20
Slide 21: Our business
Our business 3i Group AUM £12.7bn Private Equity Infrastructure Debt Management Buyouts Growth Capital Investing in buyouts Minority investing in Investing primarily in Management of funds with an enterprise high-growth businesses utilities, transportation which invest in senior value up to €1 billi
Slide 22: Our strategy
Our strategy Invest Grow our business • in growing companies that • in areas consistent with our skills fit with our values • by strengthening our • with management teams and international network and entrepreneurs, working with them building our sector capabilities to deliver their full potential •
Slide 23: Continued growth in returns to shareholders
Continued growth in returns to shareholders pence 375 355.2 350 333 325 322 300 286 279* 275 250 225 200 31.3.09 30.9.09 31.3.10 30.9.10 31.3.11 Diluted NAV per share (post dividend) Cumulative dividend per share *Adjusted to reflect the impact of the rights issue and issue of shares related to the
Slide 24: Total return
Total return Gross portfolio return Net portfolio return Total return Realised profits £124m Gross portfolio return £601m Net portfolio return £449m Unrealised value movement £325m Fees receivable £67m Net interest payable £(127)m Portfolio income £152m Net carried interest £(38)m Exchange movements
Slide 25: Our model for returns
Our model for returns Private Equity Infrastructure Debt Management 20% 12% 10% Gross return objectives Fee income as a share of returns Reduced volatility Net return objectives 15% 15% 15% 25
Slide 26: Invest
Invest Total investment of £1,455m 3i balance sheet investment of £719m 26
Slide 27: Realisations - Norma Group
Realisations - Norma Group Investment rationale • Opportunity to transform the business into a global leader in joining technology • Clear strategic priorities to grow the business through acquisitions and organic growth Valuation drivers • International expansion including new manufacturing plants
Slide 28: Balance sheet
Balance sheet 31 March (£m) 2011 2010 Investment assets 3,993 3,517 Other net liabilities (114) (191) 3,879 3,326 Gross debt 2,043 2,510 Cash (1,521) (2,252) Net borrowings 522 258 Equity 3,357 3,068 3,879 3,326 Gearing 16% 8% Liquidity £1.8bn £2.7bn NAV £3.51 Conservative balance£3.21 sheet managem
Slide 29: Grow our business
Grow our business • Acquired Mizuho Investment Management from Mizuho Corporate Bank 3i 3i Debt Debt Management • Team of 28 led by Jeremy Ghose Management • Added £3.4bn of AUM • Recruited an experienced team with an established track record in Brazil International International • Will seek direct
Slide 30: Interim Management Statement - three months to June 2011
Interim Management Statement - three months to 30 June 2011 • Increased investment and realisations – Investment: £233m (2010: £105m) – Realisations: £337m (2010: £79m) • Strong pipeline of new investment • Continued strategic development – RMB allocation in China A good start to the year 30
Slide 31: Outlook
Outlook • Macroeconomic environment remains challenging in Europe and US • Continue with measured and highly selective approach to new investment • Investing where we see opportunities for: – International growth – Buy and build – Increased operational effectiveness • Development opportunities in Pr
Slide 32: Summary
Summary Good performance in year to 31 March 2011 Investment activity increased in first quarter of current financial year Returns framework in place to guide future growth Growth from a conservative financial base Take advantage of opportunities to grow in a measured way 32
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Slide 34: The Resolutions
The Resolutions 34 34
Slide 35: Resolutions commentary
Resolutions commentary • 19 resolutions • Normal annual business • Purchase of ordinary and B shares • Directors submitting themselves for reappointment • Renewal of 3i Group Discretionary Share Plan for a further 10 years 35
Slide 36: Questions
Questions 36 36
Slide 37: Poll card
Poll card Resolutions For Against Abstain Resolutions For Against Abstain 1 To receive and consider the Company’s o Ea CJ (10 Toreappoint Mrs J S Wilson as a Director o o oO Accounts for the year to 31 March 2011 of the Company. and the Directors’ and Auditors’ reports. 11. To reappoint Ernst & Youn
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Slide 39: Resolutions 1 - 3
Resolutions 1 - 3 1 “That the Company’s Accounts for the year to 31 March 2011 and the Directors’ report, the Auditors’ report and the auditable part of the Directors’ remuneration report be and they are hereby received and considered” Proxy votes lodged for this Resolution: 99.68% For, 0.07% Discre
Slide 40: Resolutions 4 - 6
Resolutions 4 - 6 4 “That Mr J P Asquith be and he is hereby reappointed as a Director of the Company” Proxy votes lodged for this Resolution: 96.30% For, 0.07% Discretionary, 0.59% Against and 3.03% Abstain 5 “That Mr A R Cox be and he is hereby reappointed as a Director of the Company” Proxy votes
Slide 41: Resolutions 7 - 9
Resolutions 7 - 9 7 “That Mr W Mesdag be and he is hereby reappointed as a Director of the Company” Proxy votes lodged for this Resolution: 99.30% For, 0.07% Discretionary, 0.60% Against and 0.03% Abstain 8 “That Sir Adrian Montague be and he is hereby reappointed as a Director of the Company” Proxy
Slide 42: Resolutions 10 - 12
Resolutions 10 - 12 10 “That Mrs J S Wilson be and she is hereby reappointed as a Director of the Company” Proxy votes lodged for this Resolution: 99.47% For, 0.08% Discretionary, 0.42% Against and 0.03% Abstain 11 “That Ernst & Young LLP be and they are hereby reappointed as Auditors of the Company
Slide 43: Resolutions 13 - 15
Resolutions 13 - 15 13 To renew the authority to incur political expenditure Proxy votes lodged for this Resolution: 95.64% For, 0.17% Discretionary, 4.09% Against and 0.10% Abstain 14 To renew the Directors’ authority to allot shares Proxy votes lodged for this Resolution: 97.89% For, 0.08% Discret
Slide 44: Resolutions 16 - 18 Special Resolutions
Resolutions 16 - 18 Special Resolutions 16 To renew the Directors’ authority to allot shares for cash Proxy votes lodged for this Resolution: 98.97% For, 0.08% Discretionary, 0.91% Against and 0.03% Abstain 17 To renew the Company’s authority to purchase its own ordinary shares Proxy votes lodged fo
Slide 45: Resolution 19
Resolution 19 19 That a General Meeting other than an Annual General Meeting may be called on not less than 14 clear days’ notice Proxy votes lodged for this Resolution: 95.62% For, 0.08% Discretionary, 4.29% Against and 0.01% Abstain (The full text of Resolutions 13 – 19 is set out in the Notice of