Icg Enterprise Trust Plc Gbp · LSE:ICGT
Icg Enterprise Trust Plc Gbp — ICG Enterprise Trust — FY2024 Earnings Presentation
28 slides from Icg Enterprise Trust Plc Gbp's earnings presentation, May 8, 2024
Slide 1: Portfolio companies performing strongly
Portfolio companies performing strongly RESULTS FOR THE 12 MONTHS TO 31 JANUARY 2024 8 MAY 2024 For professional investors only. Not for onward distribution Note: All data as at 31 January 2024 unless specified PRIVATE AND CONFIDENTIAL
Slide 2: ICG Enterprise Trust delivers long-term growth
ICG Enterprise Trust delivers long-term growth FY241 3 YEARS (ANN.)1 5 YEARS (ANN.)1 10 YEARS (ANN.)1 NAV PER SHARE TOTAL RETURN +2.1% +13.3% +14.6% +13.2% SHARE PRICE TOTAL RETURN +9.6% +11.1% +11.2% +11.0% 1 On an annualised basis, reflecting annualised performance data for the 3-, 5-, and 10-year
Slide 3: Clear investment strategy
Clear investment strategy Reducing risk Generating alpha Buyouts Developed Mid-market and Top-tier markets larger deals managers Defensive More consistent Primarily in North More likely to be Track records of growth returns profile, with America and Europe; resilient and attract investing well less
Slide 4: Actively constructed and diversified portfolio
Actively constructed and diversified portfolio DIVERSIFIED PORTFOLIO % of Portfolio value % PORTFOLIO VALUE 1 3.4% 1.5% 3% 18% 39% 48% 2.4% 1.4% 2% Top 10 Top 30 Top 50 1.8% 1.4% 1% 1.6% 1.4% 1.5% 1.3% 0% BALANCED GEOGRAPHICAL EXPOSURE INVESTMENT TYPE RESILIENT SECTOR EXPOSURE Target Target TMT weig
Slide 5: FY24 results
FY24 results PRIVATE AND CONFIDENTIAL
Slide 6: FY24: Portfolio Manager observations
FY24: Portfolio Manager observations • Portfolio companies reporting strong operational performance: 14.2% LTM EBITDA growth1 and prudent leverage of 4.6x • Investing in high quality companies is a through-cycle approach: 38 Full Exits executed at an average Uplift to Carrying Value of 30% • Our inv
Slide 7: FY24 in review
FY24 in review PERFORMANCE OF OUR INVESTMENT STRATEGY RETURNS TO SHAREHOLDERS Portfolio Total Return Capital Return 5.9% NAV per Share 3.2% 1,909p Share Price Total Return Dividend per share1 Share buybacks NAV per Share Total Return 9.6% 33p £13m 2.1% Portfolio Return on a Portfolio Return on a Loc
Slide 8: Our portfolio companies are growing
Our portfolio companies are growing LTM REVENUE GROWTH LTM EBITDA GROWTH EV / EBITDA NET DEBT / EBITDA Top 30 companies 38.6% 10.1% 1 12.8% 1 14.6x 1 4.4x 1 of Portfolio value FY23: 21.9% FY23: 21.6% FY23: 14.3x FY23: 4.7x Enlarged perimeter2 67.5% 11.6% 3 14.2% 3 14.6x 3 4.6x 3 of Portfolio value F
Slide 9: Breaking down our FY24 performance
Breaking down our FY24 performance Indicative As reported ~8.7% ~(1.8)% 5.9% ~(1.0)% (2.9)% in FY23 3.2% +0.3% in FY23 (2.7)% +0.7% 2.1% (1.8)% Portfolio Growth Impact of Chewy Impact of Portfolio Return Impact of FX Portfolio Return Costs and impact Dividend and NAV per Share on a Local Secondary s
Slide 10: FY24 activity
FY24 activity PRIVATE AND CONFIDENTIAL
Slide 11: Executing our investment strategy
Executing our investment strategy FY24 A Commitments £153m Commitments (FY23: £203m) B Total New £137m Investments Total Total New (FY23: £287m) Proceeds Investments C Growth £83m (FY23: £123m) Growth D Total Proceeds £239m (FY23: £252m) Source: ICG Enterprise Trust, as of 31 January 2024 Past perfo
Slide 12: New fund commitments in FY24
A New fund commitments in FY24 CAPITALISING ON OPPORTUNITIES TO ACCESS TOP-TIER MANAGERS New manager relationship during the period FY24 Primary £153m Secondary • Commitments made to 12 funds • Two commitments to ICG-managed funds, totalling £42m Commitments made in FY24 are expected to be invested
Slide 13: Case study: Fund commitments made in FY22
A Case study: Fund commitments made in FY22 Seeds we sowed in 2021 (FY22) are showing early signs of performing well £190M COMMITTED ACROSS 8 MANAGERS PERCENT CALLED AS AT 31 JANUARY 2024 70%+ Called in line with deploying over 3-5 years RETURNS BASED ON CURRENT VALUATION 1.35x 23% Net MOIC Net IRR
Slide 14: Investing today
B Investing today NEW INVESTMENTS TOP 5 INVESTMENTS BY SIZE New Investments / Opening Portfolio Developer of FY24: 10% governance, risk and 5Y Avg: 21% £304m compliance software £287m Provider of intelligent access management Q4 Q4 solutions Provider of professional £159m Q3 Q3 testing, inspection,
Slide 15: Balanced growth
C Balanced growth PORTFOLIO VALUATION BRIDGE (£M) Portfolio Return on a Local Currency Basis: +5.9% Portfolio Return on a Sterling Basis: +3.2% +7.5%1 +6.2%1 +5.3%1 £83m growth in Portfolio Totals may not sum due to rounding 1 Portfolio Return on a Local Currency Basis Source: ICG Enterprise Trust,
Slide 16: Realisation activity
D Realisation activity REALISATION PROCEEDS TOP 5 REALISATIONS BY SIZE Realisation Proceeds / Opening Portfolio FY24: 12% Provider of paid 5Y Avg: 21% private schooling £334m Provider of clinical research services £252m Provider of Q4 technology enabled £171m healthcare payor £141m £137m Q4 services
Slide 17: Continuing our track record of uplifts on exit
D Continuing our track record of uplifts on exit TRACK RECORD OF FULL EXITS 2.5x 2.7x 2.1x 2.1x 1.9x 1.9x 2.7x 2.4x 2.4x 2.4x 2.6x 2.7x 3.5x 38 Full Exits £101m proceeds 51% 49% 40% 36% 37% 36% 35% 35% 31% 30% 24% 24% 22% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1 2 Weighted-
Slide 18: Delivering for shareholders
Delivering for shareholders PRIVATE AND CONFIDENTIAL
Slide 19: Focus on shareholder value
Focus on shareholder value Investment strategy Delivering defensive growth through cycles Optimising NAV return Cost base Cap on management fee rate and change to cost sharing arrangement with ICG plc saved shareholders approximately £1.9m in FY24 Capital allocation Growing shareholder distributions
Slide 20: Growing shareholder distributions
Growing shareholder distributions TOTAL SHAREHOLDER DISTRIBUTIONS (DIVIDENDS + BUYBACKS) £35m1 £21m £22m £18m £17m Buybacks Dividends FY20 FY21 FY22 FY23 FY24 2 PROGRESSIVE DIVIDEND POLICY 33p 3 LONG-TERM SHARE BUYBACK PROGRAMME 4 30p Q4 FY24: 27p 9p per share 23p 24p 1.9m 39.6% 5 shares repurchased
Slide 21: Well-capitalised balance sheet
Well-capitalised balance sheet TOTAL AVAILABLE LIQUIDITY OVERCOMMITMENT RATIO1 NET GEARING2 £196m 28% (1)% Enabling us to maintain our investment programme through cycles Source: ICG Enterprise Trust, as at 31 January 2024 1. Overcommitment ratio is defined as (Outstanding commitments – Liquidity)/N
Slide 22: Compelling shareholder proposition
Compelling shareholder proposition 1 22 33 1 Defensive Dedicated Attractive market growth investment team 44 5 5 Proven track Strong alignment record Past performance is not a reliable indicator of future results PRIVATE AND CONFIDENTIAL 21
Slide 23: Q&A
Q&A For follow-up questions after the event, please email: icg-enterprise@icgam.com PRIVATE AND CONFIDENTIAL
Slide 24: Appendix
Appendix PRIVATE AND CONFIDENTIAL
Slide 25: Portfolio Dashboard: Top 30 companies
Portfolio Dashboard Top 30 companies: 38.6% of Portfolio value COMPOSITION OPERATING PERFORMANCE2 FINANCIAL MULTIPLE2 SECTOR EXPOSURE LTM REVENUE GROWTH Average: +10.1% EV / EBITDA Average: 14.6x TMT 60% 40% 1 Consumer 48% 50% 30% Business services 30% 40% Healthcare 21% Industrials 30% 20% 23% Leis
Slide 26: Portfolio Dashboard: Enlarged perimeter
Portfolio Dashboard Enlarged perimeter: 67.5% of Portfolio value 2 2 COMPOSITION OPERATING PERFORMANCE FINANCIAL MULTIPLE SECTOR EXPOSURE LTM REVENUE GROWTH Average: +11.6% EV / EBITDA Average: 14.6x 30% TMT 50% Consumer 1 23% 40% 39% Business services 20% 17% 17% Healthcare 30% 24% 12% Industrials
Slide 27: Performance figures
Performance figures Performance for 12 months ending: 31 January 2024 31 January 2023 31 January 2022 31 January 2021 31 January 2020 NAV per Share Total Return 2.1% 14.5% 24.4% 22.5% 11.2% Share Price Total Return 9.6% (2.3)% 27.1% 2.8% 20.5% FTSE All-Share Index Total Return 1.9% 5.2% 18.9% (7.5)%
Slide 28: 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