3i Group Plc · LSE:III
3i — Shareholder Meeting (July 2009)
49 slides from 3i's shareholder meeting presentation, Jul 8, 2009
Slide 1: Annual General Meeting
Annual General Meeting 8 July 2009 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: Baroness Hogg, Chairman
Baroness Hogg Chairman 3
Slide 4: The Board of Directors
The Board of Directors 4
Slide 5: Willem Mesdag
Willem Mesdag i>
Slide 6: Robert Swannell
Robert Swannell 6
Slide 7: Oliver Stocken
Oliver Stocken 7
Slide 8: Michael Queen
Michael Queen 8
Slide 9: Julia Wilson
Julia Wilson 9
Slide 10: Kevin Dunn
Kevin Dunn 10
Slide 11: Lord Smith of Kelvin
Lord Smith of Kelvin 11
Slide 12: Christine Morin-Postel
Christine Morin-Postel 12
Slide 13: Richard Meddings
Richard Meddings 13
Slide 14: John Allan and Alistair Cox
John Allan and Alistair Cox John Allan Alistair Cox 14
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Slide 16: Share price and diluted NAV per share
Share price and diluted NAV per share 1200 1000 800 Pence per share 600 400 200 3i Group FTSE All Share (rebased vs 3i) 3i Group Diluted NAV 0 Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 94 95 95 96 96 97 97 98 98 99 99 00 0
Slide 17: Key themes
Key themes • A challenging year • Change to leadership • Strengthen balance sheet • Maintain financial discipline 17
Slide 18: Share price performance since January 2009
Share price performance since January 2009 300 280 260 3i FTSE All Share (rebased vs 3i) FTSE General Financial (rebased vs 3i) 240 Pence per share 220 200 180 160 140 120 100 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 18
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Slide 20: Michael Queen, Chief Executive
Michael Queen Chief Executive 20
Slide 21: A focused private equity business
A focused private equity business (as at 31 March 2009) 3i Group Buyouts Growth Capital Infrastructure Mid-market transactions in Europe Minority investments in established Investing principally in and Asia and profitable businesses across transportation, utilities and social Europe, Asia and the No
Slide 22: Strong cash flow generation
Strong cash flow generation 3,000 110% 90% 2,000 70% 1,000 50% 0 * 30% 10% (1,000) -10% (2,000) -30% -50% (3,000) -70% (4,000) -90% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009* Year to 31 March Investment (£m) Return flowYear (£m)to 31 March Other (£m) Gearin
Slide 23: Management actions in year to March 2009
Management actions in year to 31 March 2009 • £1.3 billion realisations • Acquisition of 3i QPE plc • Sale of 9.5% of 3i Infrastructure (£61m) • Action to reduce expenses by c.15% • CIO role created 23
Slide 24: Management actions in three months to June 2009
Management actions in three months to 30 June 2009 • Rights issue of £732m – reduced pro forma gearing from 103% to 42% – strengthened the balance sheet to protect against further falls in value – enables the Group to manage existing portfolio over time to maximise returns – provides capital for new
Slide 25: Pro forma balance sheet
Pro forma balance sheet March 2009 March March pro forma* 2009 2008 £m £m £m Investment assets 4,022 4,050 6,016 Other net liabilities (276) (276) (321) 3,746 3,774 5,695 Net borrowings 1,103 1,912 1,638 Equity 2,643 1,862 4,057 3,746 3,774 5,695 Gearing 42% 103% 40% * On the basis of the fundraisin
Slide 26: Capital structure and liquidity
Capital structure and liquidity • Target is a conservative capital structure: – want to significantly reduce net debt to approximately £1bn – target an investment grade rating in order to enable access to debt capital markets – lower net debt reduces financial risk and returns volatility • Our gross
Slide 27: New investment opportunities
New investment opportunities • Growth Capital – companies short of capital – limited competition • Infrastructure – economic stimulus in developed world – new build in developing world • Buyouts – M&A activity – corporates selling non-core assets 27
Slide 28: Interim Management Statement
Interim Management Statement • Net debt reduced to £961m at 30 June 2009 • Realisations for the first quarter of £163m at a modest uplift to opening valuation • Investment of £76m for the three months “Given our view of the general economic outlook, we will continue to take a cautious approach to ne
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Slide 30: The Resolutions
The Resolutions 30
Slide 31: Resolutions commentary
Resolutions commentary • AGM – 15 resolutions – normal annual business – re-purchase of ordinary and B shares – 14 days’ notice for calling a General Meeting (other than an AGM) 31
Slide 32: Questions
Questions 32
Slide 33: Poll card
Poll card Annual General Meeting Poll Card Resolutions For Against Abstain 1 To receive and consider the Company’s Accounts for the year to 31 March 2009 and the Directors’ and Auditors’ reports. 2 To approve the Directors’ remuneration report for the year to 31 March 2009. 3 To reappoint Mr M J Que
Slide 34: Resolution 1
Resolution 1 Proxy votes lodged for this Resolution: 97.80% For, 0.07% Discretionary, 0.21% Against and 1.92% Abstain “THAT the Company’s Accounts for the year to 31 March 2009 and the Directors’ report, the Auditors’ report and the auditable part of the Directors’ remuneration report be and they ar
Slide 35: Resolution 2
Resolution 2 Proxy votes lodged for this Resolution: 90.56% For, 0.07% Discretionary, 2.33% Against and 7.04% Abstain “THAT the Directors’ remuneration report for the year to 31 March 2009 be and it is hereby approved” 35
Slide 36: Resolution 3
Resolution 3 Proxy votes lodged for this Resolution: 96.34% For, 0.07% Discretionary, 1.67% Against and 1.92% Abstain “THAT Mr M J Queen be and he is hereby reappointed as a Director of the Company” 36
Slide 37: Resolution 4
Resolution 4 Proxy votes lodged for this Resolution: 99.45% For, 0.07% Discretionary, 0.44% Against and 0.04% Abstain “THAT Mr R H Meddings be and he is hereby reappointed as a Director of the Company” 37
Slide 38: Resolution 5
Resolution 5 Proxy votes lodged for this Resolution: 97.57% For, 0.07% Discretionary, 0.44% Against and 1.92% Abstain “THAT Mme C J M Morin-Postel be and she is hereby reappointed as a Director of the Company” 38
Slide 39: Resolution 6
Resolution 6 Proxy votes lodged for this Resolution: 97.14% For, 0.07% Discretionary, 0.87% Against and 1.92% Abstain “THAT Mr O H J Stocken be and he is hereby reappointed as a Director of the Company” 39
Slide 40: Resolution 7
Resolution 7 Proxy votes lodged for this Resolution: 99.63% For, 0.07% Discretionary, 0.26% Against and 0.04% Abstain “THAT Mrs J S Wilson be and she is hereby reappointed as a Director of the Company” 40
Slide 41: Resolution 8
Resolution 8 Proxy votes lodged for this Resolution: 96.99% For, 0.07% Discretionary, 0.20% Against and 2.74% Abstain “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 befor
Slide 42: Resolution 9
Resolution 9 Proxy votes lodged for this Resolution: 99.03% For, 0.07% Discretionary, 0.03% Against and 0.87% Abstain “THAT the Board be and it is hereby authorised to fix the Auditors’ remuneration” 42
Slide 43: Resolution 10
Resolution 10 Proxy votes lodged for this Resolution: 98.59% For, 0.07% Discretionary, 1.28% Against and 0.06% Abstain To renew the authority to incur political expenditure (The full text of this Resolution is set out in the Notice of AGM) 43
Slide 44: Resolution 11
Resolution 11 Proxy votes lodged for this Resolution: 99.81% For, 0.07% Discretionary, 0.10% Against and 0.03% Abstain To renew the Directors’ authority to allot shares (The full text of this Resolution is set out in the Notice of AGM) 44
Slide 45: Resolution 12
Resolution 12 Proxy votes lodged for this Resolution: 99.71% For, 0.07% Discretionary, 0.17% Against and 0.04% Abstain 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 AGM) 45
Slide 46: Resolution 13
Resolution 13 Proxy votes lodged for this Resolution: 99.87% For, 0.07% Discretionary, 0.04% Against and 0.02% Abstain Special Resolution To renew the Company’s authority to purchase its own ordinary shares (The full text of this Resolution is set out in the Notice of AGM) 46
Slide 47: Resolution 14
Resolution 14 Proxy votes lodged for this Resolution: 98.97% For, 0.07% Discretionary, 0.94% Against and 0.03% Abstain Special Resolution To renew the Company’s authority to purchase its own B shares (The full text of this Resolution is set out in the Notice of AGM) 47
Slide 48: Resolution 15
Resolution 15 Proxy votes lodged for this Resolution: 98.88% For, 0.07% Discretionary, 0.96% Against and 0.09% Abstain Special Resolution “THAT a General Meeting other than an Annual General Meeting may be called on not less than 14 clear days’ notice” 48
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