3i Group Plc · LSE:III
3i — Shareholder Meeting (June 2016)
26 slides from 3i's shareholder meeting presentation, Jun 30, 2016
Slide 1: Annual General Meeting
Annual General Meeting 30 June 2016
Slide 2: Simon Thompson, Chairman
Simon Thompson Chairman
Slide 3: The Board of Directors and General Counsel
The Board of Directors and General Counsel 3
Slide 4: 2016 has delivered another robust result
2016 has delivered another robust result which demonstrates the value of our clear, consistent strategy and disciplined approach to investment. 4
Slide 5: FY2016: good progress against all KPIs
FY2017: good progress against all KPIs Group Private Equity Infrastructure Debt Management Total return on Full year dividend Private Equity Infrastructure Debt equity per share realisation realisation Management proceeds proceeds AUM raised 22% 22p £743m £51m £1.5bn NAV per share Operating cash Pri
Slide 6: FY2016 total dividend of 22p per share
FY2016 total dividend of 22p per share 2012 policy track record 2014 2015 2016 Base 8.1p 8.1p 8.1p Additional 11.9p 11.9p 13.9p 20.0p 20.0p 22.0p % realised cash proceeds 21% 23% 27% Interim dividend of 6 pence. Final dividend of 16 pence 6
Slide 7: Updated dividend policy from FY2017
Updated dividend policy from FY2017 • Base dividend increased from 8.1 pence to 16 pence per share • Additional dividend dependent on net divestment and balance sheet, rather than formula, provided that – Gearing <20% – Gross debt <£1bn Confidence in future outlook underpins new dividend policy 7
Slide 8: Simon Borrows
Simon Borrows
Slide 9: Progress reflected in materially stronger and stable financial performance
Progress reflected in materially stronger and stable financial performance Year to Year to Year to Year to Year to 31 Mar 2016 31 Mar 2015 31 Mar 2014 31 Mar 2013 31 Mar 2012 Total return £824m £659m £478m £373m £(656)m % over opening net asset value 21.7% 19.9% 16.3% 14.2% (19.5)% Dividend per shar
Slide 10: Private Equity: An excellent year
Private Equity An excellent year Strong return for the year • £1,011m gross investment return • 32% of opening book value Resilient portfolio performance • 17% weighted average earnings growth • Limited direct exposure to oil & gas and commodities Good quality new investment • £365m proprietary capi
Slide 11: A portfolio weighted towards our better assets
Private Equity A portfolio weighted towards our better assets The buckets Selected examples % of value FY2016 FY2015 1 Longer-term hold and value creation Action, Scandlines, Audley Travel c.62% c.60% 2 Strong performers; performing in line with investment case Q Holding, Aspen Pumps, Euro-Diesel, W
Slide 12: FY13+ vintages are performing well
Private Equity FY13+ vintages are performing well Financial Total cost Investment year invested Country Sector (£m) Aggregate Geka FY13 Germany Industrials 57 MM of 1.3x Scandlines (further) FY13 Denmark/Germany Transport 77 compares well JMJ FY14 US Business Services 42 with 2013 ATESTEO (GIF) FY14
Slide 13: Key value drivers: Action
Private Equity Key value drivers: Action • Strong results to December 2015 – sales up 32% year-on-year to €2bn – LFL sales growth of 7.6% – operating EBITDA up 36% year-on-year to €226m – Similar growth trajectory expected for 2016 • Due to expected growth and third-party interest in the business, v
Slide 14: Infrastructure: Building investment momentum
Infrastructure Building investment momentum Contributing to capital and • £47m gross investment return, or 8% of income returns opening book • £49m cash income • £51m proceeds from 3iN special dividend Good momentum in • advised 3iN on four new investments or investment activity in 3iN commitments,
Slide 15: Debt Management: Good cash generation
Debt Management Good cash generation Continued growth in AUM • Four new CLOs issued in the US and Europe despite difficult markets • £1.3bn new CLO AUM raised • Total AUM of £8.1bn Leveraging strong balance • Seeded $75m to the Global Income Fund, sheet to diversify product which reached AUM of $188
Slide 16: Continuing to improve capital efficiency and allocation
Continuing to improve capital efficiency and allocation Average over FY10-FY12 Year to 31 March 2016 £1,031m 27% £967m 13% 6% 41% 20% 61% 3% 29% Realisations, Operating costs,Debt repayment Shareholder Funds to invest Realisations, Operating costs,Debt repayment Shareholder Funds to invest fees and
Slide 17: Our strategic objectives
Our strategic objectives 1 Grow investment portfolio earnings 2 Realise investments with good cash-to-cash returns 3 Maintain an operating cash profit 4 Use our strong balance sheet 5 Increase shareholder distributions 17
Slide 18: The Resolutions
The Resolutions
Slide 19: Resolutions commentary
Resolutions commentary • 18 resolutions • Normal annual business 19
Slide 20: Poll card
Poll card AGM poll card The Board recommends you vote FOR resolutions 1 to 18 Resolutions Against Abstain Resolutions For Against Abstain 1 Toreceive and consider the Companys Accounts for the year 1031 March 2016 and the Directors’ and Auditor’ reports. 2 To approve the Directors’ remuneration repo
Slide 21: Resolutions 1 – 3
Resolutions 1 – 3 1. “That the Company’s Accounts for the year to 31 March 2016, 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 Dir
Slide 22: 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 P Grosch b
Slide 23: 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
Slide 24: 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’ remuner
Slide 25: Resolutions 16 - 18
Resolutions 16 - 18 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” 25
Slide 26: Slide 26