Icg Enterprise Trust Plc Gbp · LSE:ICGT
Icg Enterprise Trust Plc Gbp — ICG Enterprise Trust — FY2023 Earnings Presentation
24 slides from Icg Enterprise Trust Plc Gbp's earnings presentation, May 2023
Slide 1: Delivering defensive growth
Delivering defensive growth Note: All data as at 31 January 2023 unless specified
Slide 2: Highlights
Highlights • 14th consecutive year of double-digit Portfolio growth (+10.5% on a Local Currency Basis) • FY23 NAV per Share Total Return of 14.5% (five-year annualised: 16.9%) • Strong performance of Portfolio companies: LTM EBITDA growth of Top 30 companies +21.6% Performance • 14 fund commitments
Slide 3: FY23 in review
FY23 in review PERFORMANCE RETURNS TO SHAREHOLDERS Portfolio NAV per Share Total Return (LTM) Capital Return (LTM) £1,406m 1,903p NAV Dividend per Share £1,172m Portfolio 1 per share2 share3 buybacks 1,690p 11% 15% 30p £2m FY22 FY23 FY22 FY23 INVESTMENT ACTIVITY REALISATION ACTIVITY New Fund Commitm
Slide 4: FY23 Portfolio activity overview
FY23 Portfolio activity overview Primary Direct Secondary Total ICG-managed Local currency return 8.0% 15.5% 11.5% 10.5% 11.8% Strong returns and substantial proportion of Portfolio Sterling return 14.0% 22.5% 19.0% 17.0% 18.8% activity generated by ICG-managed portion of the New Investments £138.6m
Slide 5: FY23 Performance overview
FY23 Performance overview PORTFOLIO VALUATION BRIDGE (£M) Portfolio Return on a Local Currency Basis: +10.5% Portfolio Return on a Sterling basis: +17.0% +11.5%1 +15.5%1 +8.0%1 • Primary: broad-based growth, underpinned by resilient operational performance • Direct: strong operational performance su
Slide 6: Realisations at uplifts to carrying value
Realisations at uplifts to carrying value REALISATION PROCEEDS SELECTED REALISATIONS 9 MONTHS TO 31 OCTOBER 3 MONTHS TO 31 JANUARY £334m Q4 £252m Business Services Consumer goods Pharmaceuticals Q3 Q4 and services Q2 Q3 Q2 Q1 Q1 Business Services Consumer goods Industrials Financials and services 1
Slide 7: Case study: recent realisation
Case study: recent realisation DOC Generici ~€ 11M Consolidated network of suppliers, mainly in Europe and China, to maintain an asset light business model TOTAL INVESTMENT (2019) Growing health & wellness market increasing health awareness among consumers, underpinned by structural demographic driv
Slide 8: Investing today
Investing today NEW INVESTMENTS £304m £287m Primary Q4 Q4 FY23 Direct £287m Secondary £158m £159m Q3 Q3 £139m Q2 Q2 Q1 Q1 FY19 FY20 FY21 FY22 FY23 Balanced new investments by type and by period across FY23 Source: ICG Enterprise Trust, as of 31st January 2022 Past performance is not a reliable indic
Slide 9: Committing to tomorrow
Committing to tomorrow CAPITALISING ON OPPORTUNITIES TO ACCESS LEADING MANAGERS New manager relationship during the period FY23 Primary £203m Secondary • Congested private equity fundraising environment a positive for ICGT • Two commitments to ICG-managed funds focussed on Secondary investments Comm
Slide 10: Portfolio today: actively constructed for defensive growth
Portfolio today: actively constructed for defensive growth DIVERSIFIED PORTFOLIO % of Portfolio value % PORTFOLIO VALUE 1 3% 19% 38% 47% 2% Top 10 Top 30 Top 50 1% 0% BALANCED GEOGRAPHICAL EXPOSURE RESILIENT SECTOR EXPOSURE INVESTMENT TYPE Target TMT Target weighting weighting Consumer goods & servi
Slide 11: Invested in companies with defensive growth characteristics
Invested in companies with defensive growth characteristics EXAMPLES FROM TOP 30 COMPANIES Strong market position Mission-critical services Ability to pass on price High margins increases New entrant to the Top 30 during the year Note: All company names and logos are trademarks are owned by their re
Slide 12: Consistent long-term financial performance of Top 30 companies
Consistent long-term financial performance of Top 30 companies LTM EBITDA GROWTH 60% Top 30 EBITDA Growth FTSE All Share EBITDA Growth 52% 50% 40% 36% 33% 30% 30% 22% 20% 17% 16% 17% 13% 14% 13% 14% 14% 12% 10% 13% 12% 10% 8% 10% 8% 3% 2% 1% 0% (10)% (6%) (9%) (20)% (14%) (19%) (30)% (30%) (40)% FY1
Slide 13: Robust underlying financial performance
Robust underlying financial performance LTM REVENUE GROWTH LTM EBITDA GROWTH EV / EBITDA NET DEBT / EBITDA 1 1 1 1 Top 30 companies 38.3% 21.9% 21.6% 14.3x 4.7x of Portfolio value FY22: 27.1% FY22: 29.6% FY22: 14.6x FY22: 4.3x Enlarged perimeter2 75.2% 22.2% 3 21.8% 3 14.0x 3 4.6x 3 of Portfolio val
Slide 14: Track record of delivering for shareholders
Track record of delivering for shareholders 1 2 PORTFOLIO RETURN NAV PER SHARE HISTORICAL NAV GROWTH 15% 1,900 FY23 +10.5% +14.5% 1,700 10% 1,500 5% 1,300 1,100 0% 900 (5%) 700 +19.1% +16.9% 500 (10%) Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 NAV per share (p) Q-o-Q NAV per Share Total Return (RHS)
Slide 15: Dividend and buyback update
Dividend and buyback update 1,2 3 PROGRESSIVE DIVIDEND POLICY MAINTAINED LONG-TERM SHARE BUYBACK PROGRAMME INTRODUCED 30p 27p 472k shares repurchased 24p 0.69% of FY23 opening issued share capital 23p 22p 21p £5.2m capital returned to shareholders 41.2% 4 average discount to NAV 28 FY18 FY19 FY20 FY
Slide 16: Delivering defensive growth
Delivering defensive growth • 14th consecutive year of double-digit Portfolio growth • Sustained investment and realisation activity with meaningful uplift on exits FY23 • Capitalising on an active fundraising environment to support future investment pipeline • Focus on shareholder returns: buyback
Slide 17: Q&A
iCG ENTERPRISE TRUST Q&A
Slide 18: Appendix
iCG ENTERPRISE TRUST Appendix
Slide 19: Portfolio Dashboard: Top 30 companies
Portfolio Dashboard Top 30 companies: 38.3% of Portfolio value COMPOSITION OPERATING PERFORMANCE FINANCIAL MULTIPLE 2 SECTOR EXPOSURE LTM REVENUE GROWTH EV / EBITDA2 30.0% 26.1% 30% TMT 20.3% 20.0% 14.8% 13.9% Consumer goods and 12.8% 12.1% 22.6% services 10.0% Business services 20% 19.2% Industrial
Slide 20: Portfolio Dashboard: Enlarged perimeter
Portfolio Dashboard Enlarged perimeter: 75.2% of Portfolio value 2 2 COMPOSITION OPERATING PERFORMANCE FINANCIAL MULTIPLE SECTOR EXPOSURE LTM REVENUE GROWTH EV / EBITDA 30% TMT 40% Consumer 28.9% 19.4% 30% Business services 20% 16.7% 21.4% 15.1% Healthcare 13.7% 20% 16.5% 11.5% Education 15.4% 10% 8
Slide 21: Changes to Management Fee Agreement
Changes to Management Fee Agreement • The ICG Enterprise Trust Board and the Manager have agreed a revised management fee rate, effective from 1 February 2023 • While the management fee arrangement will remain unchanged, a tiered cap as a proportion of NAV has been introduced at the following thresh
Slide 22: Liquidity
Liquidity • Available liquidity of £167.0m, including committed RCF which at 31 January 2023 had £146.3m undrawn capacity • Net debt of £44.7m • £367.0m of Undrawn Commitments within investment period o Further £129.7m of commitments to funds that are outside of their investment period • Overcommitm
Slide 23: Performance figures
Performance figures Performance for 12 months ending: 31 January 2023 31 January 2022 31 January 2021 31 January 2020 31 January 2019 NAV per Share Total Return 14.5% 24.4% 22.5% 11.2% 12.4% Share Price Total Return (2.3)% 27.1% 2.8% 20.5% 3.0% FTSE All-Share Index Total Return 5.2% 18.9% (7.5)% 10.
Slide 24: Legal notice
Legal notice iCG 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 intend