Icg Enterprise Trust Plc Gbp · LSE:ICGT
Icg Enterprise Trust Plc Gbp — ICG Enterprise Trust — H1 2020 Earnings Presentation
23 slides from Icg Enterprise Trust Plc Gbp's earnings presentation, Jul 31, 2020
Slide 1: Interim results
Interim results For the six months ended 31 July 2020 Note: All data as at 31 July 2020 unless specified
Slide 2: Highlights
Highlights Focus on defensive growth drives resilient performance NAV per share of 1,126.9p – total return of -1.0% Outperformance of FTSE All-Share, which returned -17.8% Resilient performance Portfolio began to recover in Q2, +3.2% NAV total return versus -4.1% in Q1 Diversified Portfolio
Slide 3: Company overview
Company overview A leading private equity investor; long track record of strong returns NAV and share price performance (total return) FTSE All-Share ICG Enterprise Share price Focused On buyouts in ICG Enterprise NAV growth Europe and the US 249% Selective 183% Investment process and a strong track
Slide 4: Highly focused strategy
Highly focused strategy Targeting long term structural growth trends LEADING ALL PRIVATE BUYOUTS DEVELOPED MID-MARKET AND PRIVATE EQUITY EQUITY MARKETS LARGER DEALS MANAGERS DEFENSIVE Offer more Primarily in More likely to be With track records GROWTH COMPANIES consistent returns Europe and the resi
Slide 5: Differentiated and nimble approach
Differentiated and nimble approach Investment approach can adapt to market conditions THIRD PARTY FUNDS HIGH CONVICTION INVESTMENTS 16% ▪ Underlying companies selected THIRD PARTY DIRECT ▪ Underlying companies selected C0-INVESTMENT by 36 leading private equity by ICG mangers 5% THIRD PARTY SECONDAR
Slide 6: Private equity model
Private equity model Well suited to managing through challenging economic cycles Ability to react Experience of More resilient Well placed to take quickly managing through nature of mid to advantage of cycles large buyouts market conditions Swift action to manage In-house expertise of Businesses ten
Slide 7: Portfolio overview
Portfolio overview Portfolio weighted to resilient sectors and larger companies Portfolio sector exposure ▪ Focus on experienced ‘top-tier’ managers who 6% 2% Healthcare and education invest in larger buyouts 7% 24% Consumer goods and services ▪ Weighted to resilient sectors such as healthcare, TMT
Slide 8: Top companies
Top 30 companies 79% of Top 30 companies1 are high conviction investments Top 30 companies’ sector exposure ▪ Top 30 companies represent 47% of the Portfolio 3% 1% 9% ▪ Significant bias to defensive growth and resilient 31% sectors 10% ▪ Many investments are continuing to trade well, particularly th
Slide 9: Defensive growth
Defensive growth Companies that can grow regardless of the economic environment Shift towards cloud-based applications and SaaS Navigating regulatory complexity ▪ Cloud-based software offers more flexibility, security ▪ Rising burden of regulatory compliance across sectors and efficiency and high pe
Slide 10: Outlook
Outlook Differentiated approach generating value over the long term Total return of -1.0% for the period, FTSE All-Share return -17.8% Proven investment ICGT has a 39 year track record, investing through multiple cycles strategy Investing in managers with significant experience in managing com
Slide 11: Performance
Performance ENTERPRISE TRU:
Slide 12: Portfolio performance
Portfolio performance Resilient performance during the first half of the year Underlying portfolio growth ▪ Short term performance impacted by secondary sales in period +28.9% - Selective secondary sales to re-balance the Portfolio and expand investment capacity - +1.2% local currency gain for remai
Slide 13: Realisations
Realisations Continued exit activity generating 2.0x cost on average Cash conversion1 % ▪ £94m2 of proceeds 40 - Cash proceeds 5%1 of opening portfolio value – 35 lower realisation activity in light of COVID-19 37 30 - £55m of secondary disposals in period 25 28 26 16 20 (LTM) ▪ Realisation activity
Slide 14: Investments
Investments Five new primary fund commitments to top-tier managers New investment £m ▪ Cautious in deploying capital in the current market - Maintaining discipline is key, as always 158 159 160 147 142 - Continued to selectively invest in high quality 140 128 managers with strong track records of pe
Slide 15: Primary commitments
Primary commitments Funds well placed to take advantage of market dislocation New New Strategy Strategy Bain Capital Technology Opportunities: $5.0m (£3.8m) CVC VIII: €15.0m (£13.5m) Hg Saturn 2: $5.4m (£4.1m) ▪ >$1.0bn fund focused on mid-market ▪ €22.0bn fund focused on control ▪ $4.9bn fund focus
Slide 16: Top companies
Top 30 companies Value is concentrated in our high conviction investments Pre 2013 2013-15 2016-20 High Conviction 79%1 1 Third-party Graphite primary 11% primary 10% 1 Percentages are of the top 30 value. High conviction includes ICG, direct co-investments and secondary investments 16
Slide 17: Top companies: strong revenue and earnings growth
Top 30 companies Strong revenue and earnings growth Revenue growth 15% ▪ 79% of Top 30 companies in high conviction portfolio 13% 12% 10% 11% 11% ▪ Consistently strong EBITDA growth 8% - LTM earnings growth of 15% 5% - Over a third of Top 30 companies averaged LTM EBITDA growth of >20% - Driven by b
Slide 18: Case Studies
Case Studies ENTERPRISE TRU:
Slide 19: Case study: Roompot
Case study: Roompot Co-investment Realised by PAI VI +1.3% Uplift to Company NAV upon exit Background Developments Outlook ▪ Leading holiday park operator in the ▪ Successfully expanded the business ▪ PAI sold Roompot to KKR in September Netherlands with 33 operated parks, plus organically via new s
Slide 20: Case study: Minimax
Case study: Minimax Co-investment alongside ICG Europe VI and VII €20m Total investment by ICG Enterprise Background ICG’s active ownership in a crisis Outlook ▪ Leading global supplier of fire protection ▪ ICG and management quickly shifted the ▪ Minimax is expected to perform in line with systems
Slide 21: Case study: Visma
Case study: Visma Co-investment alongside ICG Europe VI €13m Total investment by ICG Enterprise1 Background Defensive growth throughout a crisis Outlook ▪ Leading provider of mission-critical ▪ Visma has consistently generated strong ▪ Positive outlook with strong growth forecast software to SMEs an
Slide 22: Global Disclaimer
Global Disclaimer This document is being provided to you by the subsidiaries or affiliates of Intermediate Capital Group plc (“ICG”, and together with their respective directors, officers, employees, partners, members, shareholders, advisers and agents, as the context requires, “the ICG Parties”) on
Slide 23: Legal Notice
Legal Notice What this document is for This document has been prepared by ICG Alternative Investment Limited (“ICG AIL”) as manager of ICG Enterprise Trust plc (“ICG Enterprise”). The information and any views contained in this document are provided for general information only. It is not intended t