Icg Enterprise Trust Plc Gbp · LSE:ICGT
Icg Enterprise Trust Plc Gbp — ICG Enterprise Trust — H1 2016 Earnings Presentation
33 slides from Icg Enterprise Trust Plc Gbp's earnings presentation, Sep 28, 2016
Slide 1: ICG Enterprise Trust plc: Interim results presentation
ICG Enterprise Trust plc Investing in long term growth Interim results presentation 28 September 2016
Slide 2: Half year results presentation
1 Half year results presentation September 2016 1. ICG Enterprise Emma Osborne 2. Highlights and the ICG impact Head of Private Equity Fund Investments 3. Results 4. Investment activity Kane Bayliss Managing Director Private Equity Fund Investments 5. Portfolio 6. Balance sheet Mark Crowther Managin
Slide 3: 1. ICG Enterprise
2 1. ICG Enterprise Listed private equity fund specialising in buyouts in developed markets Consistent outperformance 1,000 900 Aiming for long term capital growth 800 700 Established private profitable companies 600 500 Benefitting from ICG’s insights and access 400 300 A high proportion of seconda
Slide 4: 2. Highlights
3 2. Highlights Highlights for the six months ended 31 July 2016 Net asset value per share Net asset value per share Share price Total Return Total Return 798.0 pence +10.0% +9.8% The net asset value of the The NAV per share Total Return The share price recovered to 592 Company is now 798.0 pence pe
Slide 5: 2. The ICG Impact
4 2. The ICG Impact The change of manager is already delivering benefits to shareholders Area of opportunity Impact to date Access Provide access to a broader • Commitments to 2 in-house funds: range of investment – ICG Strategic Secondaries II opportunities: both in-house – ICG Asia Pacific Mezzani
Slide 6: 3. Results
5 3. Results Both NAV and share price rose by 10% in the 6 months 6 month Jan-16 Jul-16 total return Net asset value per share 730.9p 798.0p +10.0% Share price 545.0p 592.0p +9.8% FTSE All-Share Index 3,336 3,654 +11.9% The share price is now1 at 626p, 5.7% above the period end share price 1. As at
Slide 7: 3. Results: NAV outperforms peer group and Index
6 3. Results NAV outperforms both the peer group and the Index over 1, 3, 5 and 10 years Years to Jul-161 1 3 5 10 Total return ICG Enterprise NAV growth 15.6% 24.1% 48.3% 115.6% ICG Enterprise share price growth 2.3% 29.9% 65.9% 89.3% FTSE All-Share Index 3.8% 15.5% 44.1% 75.6% Peer group2 average
Slide 8: 3. Results: The discount is relatively wide
7 3. Results The discount is relatively wide, although in line with the sector Share price (pence) 650 600 550 500 450 400 350 300 Jul 11 Jul 12 Jul 13 Jul 14 Jul 15 Jul 16 Discount 0% 5% 10% 15% 20% 25% 30% 35% 40% The share price has risen 14% in the 3 months since Brexit 45% Source: Share price d
Slide 9: 4. Investment activity: Cash generation slowed
8 4. Investment activity Cash generation slowed after three years of exceptionally high inflows Realisation proceeds of £46m are equivalent to 11% of the opening portfolio − This implies an annualised cash conversion rate of 22% which compares with 28% in the year to Jan-16 23 companies were fully r
Slide 10: 4. Investment activity: Full realisations generated uplifts
9 4. Investment activity Full realisations continued to generate uplifts to prior valuations1 Realisations of 18 post-crisis2 investments generated good uplifts and strong returns vs. original cost 5 pre-crisis3 investments dragged down the totals − This reflects the relative underperformance vs. or
Slide 11: 4. Investment activity: New investment in line with last year
10 4. Investment activity New investment was in line with last year Fund drawdowns of £22m were below the straight line rate to the end of funds’ investment periods − No drawdowns were made by the largest fund investment, Graphite VIII, which accounted for most of this difference − However, third-pa
Slide 12: 4. Investment activity: Six primary fund commitments
11 4. Investment activity Six primary fund commitments covering a range of buyout strategies Manager Fund name Fund Strategy Commitment size £m European buyouts of businesses with EVs over €300m. Focus on six Sixth Cinven Fund €7.0 bn core sectors: business services, consumer, financial services, 15
Slide 13: Case Study: ICG Strategic Secondaries $30m
Case Study: ICG Strategic Secondaries Primary commitment to ICGSS II and $30m Total commitment co-investment in VSS IV fund restructuring April 2016 Background Strategy Rationale Existing investors in older vintage funds $1 billion fund target with a dedicated Attractive niche of secondary market, m
Slide 14: 5. Portfolio: Access to managers with secondaries and directs
13 5. Portfolio Access to 34 managers with a high proportion of secondaries and directs ICG Graphite Third party Primary 61.1% 1.9% 13.2% 45.9% Secondary 15.4% 4.0% 2.7% 8.7% Co- Investment/ direct 23.5% 2.5% 7.9% 13.1% 100.0% 8.5% 23.8% 67.7% No management fee at ICGT level No management fee at und
Slide 15: 5. Portfolio: Balance between diversification and concentration
14 5. Portfolio The portfolio strikes a balance between diversification and concentration Exposure to more than 400 underlying companies − Wide range of geographies, sectors and deal types The Top 30 underlying companies represent 48% of the portfolio value − Ensures individual winners can make a di
Slide 16: 5. Portfolio: Post-crisis investments increasing
15 5. Portfolio Post-crisis investments continued to increase as a proportion of the portfolio Post-crisis investments have increased to 80% of the portfolio − These are the investments we consider to have the highest upside potential Unrealised pre-crisis1 investments are, by definition, “behind pl
Slide 17: 5. Portfolio: Top companies performing well
16 5. Portfolio Top 30 companies are performing well and are conservatively valued The Top 30 companies have generated consistently stronger EBITDA growth than quoted equity markets − Revenues and EBITDA grew by 7% and 10% respectively in the 12 months to Jun-16 − Aggregate FTSE All-Share revenues g
Slide 18: 6. Balance sheet
17 6. Balance sheet The balance sheet is well positioned to withstand economic uncertainty Jan-16 Jul-16 £m £m Investments1 428 470 % invested 80% 83% Cash 104 110 Other net assets/liabilities (11) (15) Net assets 533 565 Outstanding commitments 254 297 Undrawn bank facility2 97 102 Total liquidity3
Slide 19: 7. Dividends
18 7. Dividends The Company intends to pay a dividend of at least 20.0p per share each year The Board intends to pay a minimum dividend each year of 20.0 pence per share The Company also intends to maintain the practice of paying an interim dividend An interim ordinary dividend of 10.0 pence per sha
Slide 20: 7. Share buy-backs
19 7. Share buy-backs We will continue with buy-backs on an opportunistic basis The Company repurchased 458,426 shares at an average price of 574p in the period − The total consideration of these purchases was £2.6 million The average purchase price was equivalent to an average discount to the estim
Slide 21: 8. Conclusion
20 8. Conclusion ICG Enterprise is well positioned for future growth The environment for realisations remains favourable and we expect further exit activity in H2 The portfolio continues to perform well − The Top 30 companies grew EBITDA in the 12 months to Jun-16 by 10% − The performance of the Top
Slide 22: Appendix I: About ICG
Appendix | About ICG ENTERPRISE TRI 21
Slide 23: Appendix I: Introduction to ICG - Who are we?
22 Appendix I: Introduction to ICG Who are we? Respected institution ICG is a specialist asset manager in private debt, credit and equity with approximately €21.2 billion €21.2 billion of assets under management on behalf of third party investors and the ICG plc balance sheet €2.0 billion ICG is lis
Slide 24: Appendix I: Specialist asset manager
23 Appendix I: Introduction to ICG Specialist asset manager Focus on investing in private debt, credit and equity ICG is a specialist asset manager with 27 years’ history in private debt, credit and equity Our objective is to generate income and consistently high returns whilst protecting against in
Slide 25: Appendix I: Generating growth across four asset classes
24 Appendix I: Introduction to ICG Generating growth across our four asset classes Corporate Capital Market Real Asset Secondary investments investments ICinvestments Approval investments €10.8bn AUM €4.8bn AUM €3.2bn AUM €1bn AUM Senior debt, mezzanine & CLO, loan mandates & Real estate investment
Slide 26: Appendix I: ICG Private Equity Fund Investment team
25 Appendix I: Introduction to ICG ICG Private Equity Fund Investment team An experienced team combining direct and fund investment skills Emma Osborne Kane Bayliss Fiona Bell Colm Walsh Kelly Tyne Amalia Formoso Head of Private Equity Managing Director Associate Director Associate Director Associat
Slide 27: Appendix I: Oversight and specialist support to ICGT team
26 Appendix I: Introduction to ICG A wide range of oversight and specialist support to the ICGT team Christophe Evain Philip Keller Benoit Durteste Mark Crowther Chief Executive Officer Chief Finance and Operating Executive Director, Head of Corporate Strategy and Officer European Investments Invest
Slide 28: Appendix II: Performance
27 Appendix II: Performance The portfolio made good progress, increasing by 7.4% in local currencies % of opening % of opening Half year to Jul-16 portfolio NAV Realised & unrealised gains 7.4% 6.1% Currency 5.8% 4.8% Total portfolio 13.2% 10.9% Management fee -0.5% Other costs and expenses -0.6% Bu
Slide 29: Appendix III. Market: UK buy-out activity
28 Appendix III. Market UK buy-out activity was impacted by EU referendum uncertainty European buy-out market The European market remains active, although the value of UK buy-outs declined sharply in H1 20161 − €49.1bn of Europe ex UK buy-outs compares with €47.1bn in H1 2015 and €57.0bn in H2 2015
Slide 30: Appendix III. Market: Fundraising and fund restructuring
29 Appendix III. Market The fundraising and fund restructuring markets are relatively active Fundraising1 The amount raised by European buy-out funds in H1 2016 was very strong − €49.7bn compares with €18.2bn in H1 2015 and €21.0bn in H2 2015 7 funds closed in the period with €1bn+ of commitments ea
Slide 31: Useful information
30 Useful information Structure: Company registered in England and Wales Ticker: ICGT.LON Investment trust tax status ISIN: GB0003292009 Registered company number: 01571089 SEDOL: 0329200 Listing: Premium London listing Website: www.icg-enterprise.co.uk Broker: J.P.Morgan Cazenove Angus Wilton (sale
Slide 32: Disclaimer
31 Disclaimer This document is issued by ICG Alternative Investment Limited (“ICGAIL”) which is authorised and regulated by the UK Financial Conduct Authority (“FCA”). The materials being provided to you are intended only for informational purposes and convenient reference, and do not create any leg
Slide 33: Legal notice
32 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 intende