Icg Enterprise Trust Plc Gbp · LSE:ICGT
Icg Enterprise Trust Plc Gbp — ICG Enterprise Trust — H1 FY24 Earnings Presentation
22 slides from Icg Enterprise Trust Plc Gbp's earnings presentation, Oct 5, 2023
Slide 1: Defensive growth with a disciplined approach
Defensive growth with a disciplined approach RESULTS FOR THE SIX MONTHS TO 31 JULY 2023 5 OCTOBER 2023 Note: All data as at 31 July 2023 unless specified PRIVATE AND CONFIDENTIAL
Slide 2: Portfolio Manager’s perspective H1 FY24
Portfolio Manager’s perspective H1 FY24 • Resilient Portfolio performance (+4.6% on a local currency basis), portfolio companies generating ~15% LTM revenue and earnings growth, with weighted-average leverage of 4.7x1 • Maintaining activity in a slower environment: continuing to realise investments
Slide 3: ICG Enterprise Trust today
ICG Enterprise Trust today PORTFOLIO COMPOSITION VS STRATEGIC OBJECTIVES ADDITIONAL PORTFOLIO COMPOSITION METRICS Investment type Underlying investments Sector Target weighting Combined TMT Portfolio value Primary ~50% Consumer 4 Healthcare Top 10 18% Business services Direct ~25% Industrials Top 30
Slide 4: Track record of delivering for shareholders
Track record of delivering for shareholders 3 3,4 3,4 LTM RETURNS L3Y (ANNUALISED) L5Y (ANNUALISED) Portfolio Return1 +7.3% +24.3% +17.9% NAV per Share2 +4.1% +21.1% +15.2% FTSE All-Share Total Return +6.1% +12.3% +3.4% 1 Portfolio Return on a Local Currency Basis; 2 NAV per Share on a Total Return
Slide 5: Period in review H1 FY24
Period in review H1 FY24 EQUITY VALUE SHAREHOLDER RETURNS Portfolio NAV per Share Total Return (LTM) Capital Return (LTM) NAV 1 Portfolio per share2 £1,399m 1,904p £32.3m3 +4.6%1 +0.8%2 7.3% 4.1% ~1/3 from buyback INVESTMENT ACTIVITY REALISATION ACTIVITY New Fund Commitments New Investments Realisat
Slide 6: Portfolio performance attribution H1 FY24
Portfolio performance attribution H1 FY24 PORTFOLIO VALUATION BRIDGE (£M) Portfolio Return on a Local Currency Basis: +4.6% Portfolio Return on a Sterling basis: +1.6% +5.5%1 1 +3.8%1 +4.7% Portfolio by fund currency H1 FX change (%) USD +4.2% EUR +2.9% GBP n/a 1 Return on local currency basis for t
Slide 7: Underlying portfolio performance
Underlying portfolio performance LTM REVENUE GROWTH LTM EBITDA GROWTH EV / EBITDA NET DEBT / EBITDA 1 1 1 1 Top 30 companies 36.8% 14.9% 14.7% 14.7x 4.8x of Portfolio value FY23: 21.9% FY23: 21.6% FY23: 14.3x FY23: 4.7x 3 3 3 3 Enlarged perimeter2 66.4% 15.6% 16.9% 14.4x 4.7x of Portfolio value FY23
Slide 8: Portfolio companies have an impressive track record of earnings growth
Portfolio companies have an impressive track record of earnings growth LTM EBITDA GROWTH 60% Top 30 EBITDA Growth FTSE All Share EBITDA Growth 52% 50% 39% 40% 36% 33% 30% 30% 22% 20% 17% 16% 17% 13% 14% 13% 14% 14% 15% 12% 10% 13% 12% 10% 8% 10% 8% 3% 2% 1% 0% (10)% (6%) (9%) (20)% (14%) (19%) (30)%
Slide 9: Continuing to see exit activity in a slower market environment
Continuing to see exit activity in a slower market environment REALISATION PROCEEDS Realisation Proceeds / Opening Portfolio LTM: 14.8% 5Y Ave: 24.6% Primary £334m H1 FY24 Direct Q4 £94.1m £252m Secondary Q3 Q4 £141m £137m Q3 £94m SELECTED REALISATIONS (H1 FY24) Q2 Q2 Q1 Q1 Consumer goods FY20 FY21
Slide 10: Broad-based uplifts to carrying value of full exits
Broad-based uplifts to carrying value of full exits H1 FY24 MOIC AT EXIT VS PRIOR CARRYING VALUE Pre-exit MOIC Exit MOIC 10.0x 9.3x 6.9x 7.7x 5.6x 6.6x 5.1x 4.8x 5.8x 4.2x 3.2x 3.4x 4.4x 2.6x 2.6x 3.9x 2.5x 2.3x 3.6x 1.8x 3.3x 3.0x 1.7x 1.7x 2.5x 2.4x 2.1x 2.1x 0.8x 1.8x 1.4x 1.4x 1.5x 0.1x Exit Exi
Slide 11: Investing today
Investing today NEW INVESTMENTS New Investments / Opening Portfolio LTM: 16.9% 5Y Ave: 26.4% £304m £287m Primary H1 FY24 Q4 Direct H2 £64.1m Secondary £159m Q3 £139m NEW DIRECT INVESTMENTS (H1 FY24) £64m H1 H1 Technology Business Services FY20 FY21 FY22 FY23 FY24 Primary commitments enabling us to i
Slide 12: Direct investment case study: Archer Technologies
Direct investment case study Archer Technologies ~£9.5M Strong market position Leading provider in a highly fragmented market. Diverse and growing multinational customer base including >50% of the Fortune500 TOTAL INVESTMENT Represents a €10m Direct investment, as well as a Primary position in Cinve
Slide 13: Committing to tomorrow
Committing to tomorrow NEW FUND COMMITMENTS DURING THE PERIOD H1 FY24 Primary £110m Secondary • Two commitments to ICG-managed funds • Originating new relationships with leading managers New manager relationship during the period Capitalising on opportunities to access leading managers and maintain
Slide 14: Shareholder returns
Shareholder returns 1 3 PROGRESSIVE DIVIDEND POLICY MAINTAINED 1ST ANNIVERSARY OF SHARE BUYBACK PROGRAMME LTM CASH RETURNS TO SHAREHOLDERS5 30p 2 32p 946k shares repurchased 27p 1.4% of FY23 opening issued share capital 24p 23p 21p 22p Q2 FY24: 8p per share £10.6m £10.6m capital returned to sharehol
Slide 15: Looking ahead: defensive growth with a disciplined approach
Looking ahead: defensive growth with a disciplined approach • ICG Enterprise Trust's strategy of investing exclusively in buyouts of businesses that exhibit defensive growth characteristics - along with our capital allocation policy - is delivering attractive shareholder returns. • We remain confide
Slide 16: Q&A
Q&A PRIVATE AND CONFIDENTIAL
Slide 17: Appendix
Appendix PRIVATE AND CONFIDENTIAL
Slide 18: Portfolio Dashboard: Top 30 companies
Portfolio Dashboard Top 30 companies: 36.8% of Portfolio value COMPOSITION OPERATING PERFORMANCE FINANCIAL MULTIPLE 2 SECTOR EXPOSURE LTM REVENUE GROWTH Average: +14.9% EV / EBITDA2 Average: +14.7x 40% 31.7% 30% TMT 26.7% 12.6% 9.8% 12.0% Consumer 1 20% 7.2% 19.7% Business services 20% 16.7% 15.8% H
Slide 19: Portfolio Dashboard: Enlarged perimeter
Portfolio Dashboard Enlarged perimeter: 66.4% of Portfolio value 2 2 COMPOSITION OPERATING PERFORMANCE FINANCIAL MULTIPLE SECTOR EXPOSURE LTM REVENUE GROWTH Average: +15.6% EV / EBITDA Average: +14.4x 20% 18.4% TMT 40% 1 15.5% Consumer 14.1% 28.6% 27.7% 13.7% Business services 30% 13.0% Healthcare 9
Slide 20: Liquidity
Liquidity LIQUIDITY PROFILE • Total available liquidity of £159m • Net debt of £49m • New €240m revolving credit facility (RCF) which was effective from 31 May 2023, replacing previous €240m facility o Extended the maturity of the Company's facility by one year, to 30 May 2027 o Terms of the new RCF
Slide 21: Performance figures
Performance figures Performance for 12 months ending: 31 July 2023 31 July 2022 31 July 2021 31 July 2020 31 July 2019 NAV per Share Total Return 4.1% 24.2% 37.5% (2.2)% 16.9% Share Price Total Return 2.8% 10.7% 40.7% (7.4)% 5.5% FTSE All-Share Index Total Return 6.1% 5.5% 26.6% (17.8)% 1.3% Source:
Slide 22: 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