3i Group Plc · LSE:III
3i — Shareholder Meeting (June 2015)
28 slides from 3i's shareholder meeting presentation, Jun 25, 2015
Slide 1: Annual General Meeting
Annual General Meeting √ 25 June 2015
Slide 2: Sir Adrian Montague, Chairman
Sir Adrian Montague Chairman 2
Slide 3: Today's agenda
Today’s agenda Introductory remarks – Sir Adrian Montague Review of the year – Simon Borrows Q&A – Sir Adrian Montague Formal business including Resolutions – Sir Adrian Montague 3
Slide 4: The Board of Directors and General Counsel
The Board of Directors and General Counsel 4
Slide 5: Excellent progress and strong results
Excellent progress and strong results “2015 has been another good year and 3i continues to make excellent progress against its strategic plan.” 5
Slide 6: FY 2015 – stronger and more resilient with good momentum across the group
FY 2015 – stronger and more resilient with good momentum across the group Group Total return on AUM of £13.5bn £28m operating equity of 20% cash profit NAV of 396p/share Up 4% from Up from £5m (2014: 348p) last year last year Business Private Equity Infrastructure Debt Management lines £831m realisa
Slide 7: Strong momentum reflected in our share price
Strong momentum reflected in our share price Share price performance since the 2012 AGM (pence per share) Share price performance 174% since 2012 AGM TSR since 2012 AGM 213% Jun 15 Note: all data as of 24 June 2015 7
Slide 8: FY2015 dividend of 20p per share
FY2015 dividend of 20p per share Policy to pay out 15-20% of gross realisations proceeds, provided that: – Gearing <20% – Gross debt is on target to be <£1bn Proposed final dividend of 14p brings total dividend to 20p per share, or 23% of gross realisations 8
Slide 9: Simon Borrows, Chief Executive
Simon Borrows Chief Executive 9
Slide 10: Our journey since the announcement of the strategic restructuring in June 2012
Our journey since the announcement of the strategic restructuring in June 2012 FY2013 FY2014 - 15 FY2016+ Transition and Restructuring Strategic goal delivery We have completed all key phases of our transformation 10
Slide 11: We delivered against all our strategic priorities
We delivered against all our strategic priorities 1 2 3 4 5 Create a Improve Re-focus and Grow third- Materially leaner consistency re-shape the party AUM reduce gross organisation and discipline Private Equity and income debt and with a cost of investment business funding costs base more and asset
Slide 12: Progress reflected in materially stronger financial performance
Progress reflected in materially stronger financial performance Year to Year to Year to Year to 31 Mar 2015 31 Mar 2014 31 Mar 2013 31 Mar 2012 Total return £659m £478m £373m £(656)m % over opening net asset value 19.9% 16.3% 14.2% (19.5)% Dividend per share (base/add) 8.1p/11.9p 8.1/11.9p 8.1p 8.1p
Slide 13: How do we progress from here? Our business model
How do we progress from here? Our business model Private Equity Infrastructure Debt Management Proprietary Capital portfolio value Fund Management fee income Employs the majority Increasingly a Primary driver of of 3i’s proprietary third-party fund third-party fund capital management management busi
Slide 14: The 3i Value Build
The 3i Value Build An attractive, multi-year value proposition Increase the underlying value of Grow investment portfolio earnings our investment portfolio Realise investments at good uplifts to Demonstrate the value of our book value and strong cash-on-cash existing investment portfolio and multipl
Slide 15: Private Equity – summary of activity
Private Equity – summary of activity Private Equity Taking advantage of market conditions to realise assets at good uplifts ─ gross investment return of £719m, or 24% of opening portfolio ─ proceeds of £831m ─ realised uplift of £144m, or 27% over opening book (excluding refinancings) ─ portfolio
Slide 16: Reshaping our Private Equity portfolio
Reshaping our Private Equity portfolio Private Equity The buckets Selected examples % of value FY2015 FY2014 Longer-term hold and value Action, Element, 1 creation Basic-Fit, Scandlines c. 60% c. 42% Strong performers; position for Hilite, Vedici, 2 sale over the next few years LHI, Dynatect c. 15%
Slide 17: Infrastructure – summary of activity
Infrastructure – summary of activity Strong performance at 3iN driving gross investment return of 20% ─ 25% total shareholder return from 3iN (£77m unrealised value growth; £20m dividend) ─ market returns compression underpinning value growth ─ performance fee of £45m driven by 3iN’s strong NAV gr
Slide 18: Debt Management – summary of activity
Debt Management – summary of activity Debt Management CLO “engine” working well: six new CLOs issued in the year, in Europe and the US, raising £2.2bn in AUM Successfully diversifying product offering ─ first close of European Mid Market Loan Fund at €250m ─ doubled AUM in US Senior Loan Fund to
Slide 19: Continue to improve capital efficiency and allocation
Continue to improve capital efficiency and allocation Average over FY10-FY12 Year to 31 March 15 Fees and Fees and portfolio portfolio income 27% income 14% 5% 18% 41% 63% 3% 29% Realisations Operating Debt Shareholder Funds to Realisations Operating Debt Shareholder Funds to costs, net repayment di
Slide 20: The Resolutions
The Resolutions
Slide 21: Resolutions commentary
Resolutions commentary 18 resolutions Normal annual business 21
Slide 22: Poll card
Poll card The Board recommends you vote FOR resolutions 1 to 18 Resolutions For Against Abstain Resolutions For Against Abstain 1 Toreceive and consider the Company's Accounts fortheyesr [J [CJ] [[] — 12 Toauthorise the Board to fix the Auditors’ remuneration. o oF ag 031 Mach 2065 ol be ers el as p
Slide 23: Resolutions 1-3
Resolutions 1-3 1. “That the Company’s Accounts for the year to 31 March 2015, the Directors’ report and the Auditors’ report on those Accounts, on the Directors’ report and on the auditable part of the Directors’ remuneration report be and they are hereby received and considered” 2. “That the Direc
Slide 24: Resolutions 4-7
Resolutions 4-7 4. “That Mr J P Asquith be and he is hereby reappointed as a Director of the Company” 5. “That Mrs C J Banszky be and she is hereby reappointed as a Director of the Company” 6. “That Mr S A Borrows be and he is hereby reappointed as a Director of the Company” 7. “That Mr A R Cox be a
Slide 25: Resolutions 8-11
Resolutions 8-11 8. “That Mr D A M Hutchison be and he is hereby reappointed as a Director of the Company” 9. “That Mr S R Thompson be and he is hereby reappointed as a Director of the Company” 10. “That Ms M G Verluyten be and she is hereby reappointed as a Director of the Company” 11. “That Mrs J
Slide 26: Resolutions 12-15
Resolutions 12-15 12. “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” 13. “That the Board be and it is hereby authorised to fix the Auditors’ remunerat
Slide 27: Resolutions 16-18
Resolutions 16-18 Special Resolutions 16. To renew the Directors’ authority to allot shares for cash 17. To renew the Company’s authority to purchase its own ordinary shares 18. That a General Meeting other than an Annual General Meeting may be called on not less than 14 clear days’ notice 27
Slide 28: Slide 28