Icg Enterprise Trust Plc Gbp · LSE:ICGT
Icg Enterprise Trust Plc Gbp — ICG Enterprise Trust — H1 FY23 Earnings Presentation
20 slides from Icg Enterprise Trust Plc Gbp's earnings presentation, Oct 11, 2022
Slide 1: Defensive growth in challenging markets
Defensive growth in challenging markets INTERIM RESULTS FOR THE SIX MONTHS TO 31 JULY 2022 11 OCTOBER 2022 Note: All data as at 31 July 2022 unless specified PRIVATE AND CONFIDENTIAL
Slide 2: Highlights
Highlights • Portfolio construction and focus on defensive growth yielded benefits; Top 30 LTM Revenue growth of 27.5% and LTM EBITDA growth of 26.3% • NAV per Share Total Return for the first half of 10.9% Performance • Valuations supported by continued realisations at uplifts to carrying value of
Slide 3: H1 '23 in review
H1 ‘23 in review VALUE TO SHAREHOLDERS BALANCE SHEET NAV per Share Portfolio Total Return (LTM) +10.9%1 +7.4%2 1,852p £1,354m NAV Portfolio2 Total Liquidity 1,690p £1,172m per share1 24% 22% £174m FY22 H1 '23 FY22 H1 '23 INVESTMENT ACTIVITY REALISATION ACTIVITY New Investments New Commitments Realis
Slide 4: Broad-based growth
Broad-based growth PORTFOLIO VALUATION BRIDGE (£M) Portfolio Return on a Local Currency Basis: +7.4% +9.9%1 1 +9.3% +5.7%1 • Primary: strong performance from several funds, including Graphite VIII and Gridiron V, supported by positive realisation activity • Secondary: strong performance driven by IC
Slide 5: Portfolio companies continue to perform strongly
Portfolio companies continue to perform strongly LTM REVENUE GROWTH LTM EBITDA GROWTH EV / EBITDA NET DEBT / EBITDA 1 1 1 1 Top 30 companies 40.6% 27.5% 26.3% 14.5x 4.3x of Portfolio value FY22: 27.1% FY22: 29.6% FY22: 14.6x FY22: 4.3x Fund sample2 40.7% 29.0% 3 34.4% 3 14.8x 3 4.8x 3 of Portfolio v
Slide 6: Disciplined investment activity
Disciplined investment activity INVESTING TODAY… …COMMITTING TO TOMORROW £144m ICG LP Secondaries I LP-led secondary transactions $60.0m £133m ICG Ludgate Hill III Secondary portfolio $25.0m £86m PAI Europe VIII Mid-market and large buyouts €25.0m £101m Advent X Large buyouts €20.0m Gridiron V Mid-m
Slide 7: Primary commitment in focus
Primary commitment in focus Gridiron Capital ~$20M Culture comes from previous experience as entrepreneurs and business owners COMMITMENT (FY23) Thematic, industry-focused approach to investing across three core sectors: B2B and B2C Services, Branded Consumer, and Niche Industrial ICGT has co-invest
Slide 8: Realisations at uplifts to carrying value
Realisations at uplifts to carrying value HISTORICAL REALISATION PROCEEDS SELECTED REALISATIONS 3 MONTHS TO 30 APRIL 3 MONTHS TO 31 JULY £175m Consumer goods Consumer goods TMT TMT and services and services £107m £85m £68m Healthcare TMT Consumer goods TMT £39m and services H1 '19 H1 '20 H1 '21 H1 '
Slide 9: Portfolio today: actively constructed for defensive growth
Portfolio today: actively constructed for defensive growth DIVERSIFIED PORTFOLIO % of Portfolio value % PORTFOLIO VALUE 1 3% 22% 41% 49% 2% Top 10 Top 30 Top 50 1% 0% BALANCED GEOGRAPHICAL EXPOSURE RESILIENT SECTOR EXPOSURE INVESTMENT TYPE TMT North America Consumer goods and Primary services Health
Slide 10: Invested in companies with defensive growth characteristics
Invested in companies with defensive growth characteristics EXAMPLES FROM TOP 30 COMPANIES Dominant market position Mission-critical services Ability to pass on price High margins increases New entrant to the Top Follow-on investment 30 during the period made during the period Source: ICG Enterprise
Slide 11: Consistent long-term financial performance of Top 30 companies
Consistent long-term financial performance of Top 30 companies EBITDA GROWTH 60% Top 30 EBITDA Growth FTSE All Share EBITDA Growth 52% 50% LTM 40% 36% 33% 30% 30% 26% 25% 20% 17% 16% 17% 13% 14% 13% 14% 14% 12% 10% 13% 12% 10% 8% 10% 3% 2% 1% 0% -10% (6%) (9%) (14%) -20% (19%) -30% (30%) -40% FY10 F
Slide 12: Extending our track record of delivering for shareholders
Extending our track record of delivering for shareholders FIVE YEAR ANNUALISED RETURNS +16.9% NAV per Share Total Return +20.6% HISTORICAL NAV GROWTH 1,800 15% 1,600 10% Portfolio 1,400 Return 5% 1,200 0% 1,000 800 (5%) Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 NAV per share (p) Q-o-Q NAV per Share
Slide 13: Ongoing focus on optimising shareholder returns
Ongoing focus on optimising shareholder returns PROGRESSIVE DIVIDEND POLICY LONG-TERM BUYBACK PROGRAMME 1 30p Disciplined capital allocation 27p 24p 22p 23p 21p Confidence in long-term prospects of the Company 14p Accretive to NAV per share FY18 FY19 FY20 FY21 FY22 H1 23 Over time may positively imp
Slide 14: Defensive growth in challenging markets
Defensive growth in challenging markets DIFFERENTIATED MODEL Dedicated team ICG platform Defensive growth • Focus on defensive growth generated attractive Portfolio returns in the period • Significant opportunity to be captured by successfully navigating challenging markets • Clear investment strate
Slide 15: Q&A
Q&A PRIVATE AND CONFIDENTIAL
Slide 16: Appendix
Appendix PRIVATE AND CONFIDENTIAL
Slide 17: Portfolio Dashboard: Top 30 companies
Portfolio Dashboard Top 30 companies (as at H1 FY23): 40.6% COMPOSITION OPERATING PERFORMANCE FINANCIAL MULTIPLE 2 SECTOR EXPOSURE LTM REVENUE GROWTH EV/EBITDA4 40.0% 30.6% 30% 30.0% TMT 20.4% 21.2% 20.0% 17.4% Consumer 21.2% 7.5% 20% 10.0% 3.0% 16.9% Business services 14.2% 14.4% 0.0% Healthcare <0
Slide 18: Portfolio Dashboard: Fund sample
Portfolio Dashboard 1 Fund sample (as at H1 FY23) 40.7% OPERATING PERFORMANCE FINANCIAL MULTIPLE LTM REVENUE GROWTH EV/EBITDA 20% 17.4% 17.7% 30% 28.4% 23.9% 13.3% GEOGRAPHIC EXPOSURE 11.1% 12.0% 20% 9.3% 10.1% 16.8% 10% 9.0% 13.9% 12.1% 10% 5.0% North America 0% 0% <0% 0-10% 10-20% 20-30% >30% n.a/
Slide 19: Performance figures
Performance figures Performance for 12 months ending: 31 July 2022 31 July 2021 31 July 2020 31 July 2019 31 July 2018 NAV per Share Total Return 24.2% 37.5% (2.2)% 16.9% 11.9% Share Price Total Return 10.0% 40.7% (7.4)% 5.5% 17.3% FTSE All-Share Index Total Return 5.5% 26.6% (17.8)% 1.3% 9.2% Sourc
Slide 20: Legal notice
Legal notice PRIVATE AND CONFIDENTIAL 19