3i Group plc · LSE:III
3i — Shareholder Meeting (July 2010)
48 slides from 3i's shareholder meeting presentation, Jul 7, 2010
Slide 1: Annual General Meeting
Annual General Meeting 7 July 2010 1
Slide 2: Safety announcement
Safety announcement • In the event of an emergency, a two-tone fire alarm will commence • An announcement over the public address system will follow; it will ask you to listen for further instructions • Take a look now for your nearest fire escape sign • Should an evacuation become necessary, instru
Slide 3: Baroness Hogg, Chairman
Baroness Hogg Chairman 3
Slide 4: The Board of Directors
The Board of Directors 44
Slide 5: Christine Morin-Postel
Christine Morin-Postel 5
Slide 6: Alistair Cox
Alistair Cox 6
Slide 7: Richard Meddings
, a ~y Richard Meddings <F Ve am * a y
Slide 8: Robert Swannell
Robert Swannell | tac a
Slide 9: Kevin Dunn
Kevin Dunn 9
Slide 10: Michael Queen
Michael Queen 10
Slide 11: Julia Wilson
Julia Wilson 11
Slide 12: John Allan
John Allan 12
Slide 13: Willem Mesdag
Willem Mesdag 13
Slide 14: Sir Adrian Montague
Sir Adrian Montague 14
Slide 15: Share price and diluted NAV per share
Share price and diluted NAV per share 1800 3i FTSE All-Share (rebased vs 3i) 3i NAV 1600 1400 1200 Pence per share 1000 800 600 400 200 0 July 1999 July 2002 July 2003 July 2005 July 2009 July 2010 July 2000 July 2001 July 2004 July 2008 July 1995 July 1996 July 2006 July 1994 July 1997 July 1998 Ju
Slide 16: Events over the year
Events over the year • Rights issue £732m • Net debt reduced from £1.9bn to £258m • Gearing reduced to 8% • Liquidity improved to £2.7bn • €1.2bn Growth Captial Fund raised • Venture Portfolio sold • Non-core portfolio down to 5% 16
Slide 17: Portfolio by geography
Portfolio by geography 1% 5% 2% 8% 14% 30% Rest of World 39% North America Asia Continental Europe 63% UK 38% 2002 2010 17
Slide 18: Doing the right thing in the right way
Our values In all our activities we will: • be commercial and fair • respect the needs of shareholders, investors, our people and the companies in which we invest • maintain our integrity and professionalism • strive for continual improvement and innovation Doing the right thing in the right way 18
Slide 19: Baroness Hogg, Chairman
Baroness Hogg Chairman 19
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Slide 21: Michael Queen
Michael Queen 21
Slide 22: Highlights in the year
Highlights in the year • Total return of £407m, a 16.2% return on opening shareholders’ funds • Realisations of £1,385m Improved Improved • Investment of £386m performance performance • Operating expenses reduced from £250m to £221m • Net asset value up 15% to 321p • Final dividend of 2p per share,
Slide 23: 3i's core business
3i’s core business 3i Group AUM £9.6bn* Buyouts Growth Capital Infrastructure Mid-market investor in Minority investments of Investing in infrastructure companies with an enterprise between €25m-€150m assets, primarily utilities, value up to €1bn in in growth companies in transportation and social E
Slide 24: Our approach
Our approach Secure access to capital from multiple sources Build great companies and deliver outstanding returns Invest in our network, people and knowledge See the best investment opportunities Create innovative financial solutions and ensure excellent execution Achieve full potential through acti
Slide 25: Invest in our network
Invest in our network… Europe • International network Aberdeen Stockholm Copenhagen Amsterdam – Operating in 12 countries London Frankfurt Paris Milan – 480 people Beijing New York Madrid • Business Leaders Network Mumbai – 12 senior advisers Singapore – Over 200 active relationships • Consolidate s
Slide 26: See the best investment opportunities
See the best investment opportunities • 3i Infrastructure plc invested £38.5m in Elgin in January 2010 • Originated through key relationships with I2 and Robertson • Bilateral investment negotiation • Relationship is platform for potential future deals Elgin Investment rationale • Delivers on expres
Slide 27: Create innovative solutions
Create innovative solutions… • Committed €84m of investment to Refresco in March 2010 • First investment from the new Growth Capital fund • Second investment in Refresco having led a buyout in 2003 • Investment will support successful “buy and build strategy” 27
Slide 28: Achieve full potential
Achieve full potential… 45% increase in EBITDA further €15m identified • Result of organic growth and acquisitions (12 acquisitions) • Improved EBITDA margins • New divisional CEOs, FDs and operations directors appointed Active partnership • Full working capital review • Pricing efficiencies achieve
Slide 29: Deliver outstanding investment returns
Deliver outstanding investment returns… • Invested €207m in Carema in 2005 • Advised, financed and supported integration of Mehilainen in 2006 • Integrated over 24 further acquisitions • Average 15% (sales) and 31% (EBITDA) growth per year from 2004 • February 2010, 3i sold Ambea for €850m (42% IRR)
Slide 30: Secure access to capital
Secure access to capital… • Announced closing of first Growth Capital fund at €1.2bn • Raised €350m 7 year bond in March 2010 • Conservative funding model Capacity and capability to invest 30
Slide 31: Total return for the year to March 2010
Total return for the year to 31 March 2010 Gross portfolio return Net portfolio return Total return Gross portfolio return £843m Net portfolio return £623m Realised profits £218m Fees receivable £59m Net interest payable £(112)m Unrealised value movement £458m Net carried interest £(58)m Exchange mo
Slide 32: Further reduction in operating costs
Further reduction in operating costs £274m £250m £221m • Total costs reduced by 12% • Underlying costs down 16% 2008 2009 2010 Closing 739 607 488 headcount 32
Slide 33: Balance sheet
Balance sheet 31 March (£m) 2010 2009 Investment assets 3,517 4,050 Other net liabilities (191) (276) 3,326 3,774 Net borrowings 258 1,912 Equity 3,068 1,862 3,326 3,774 Gearing 8% 103% Liquidity £2.7bn £1.0bn NAV £3.21 £2.79 33
Slide 34: Interim Management Statement – 3 months to 30.6.10
Interim Management Statement – 3 months to 30.6.10 Despite uncertain markets, the business continues to perform well. We are seeing stable to improving earnings performance across the portfolio and continue to see a good pipeline for investment opportunities. 34
Slide 35: Looking forward – our priorities
Looking forward – our priorities Invest Grow our business Grow our reputation One 3i 35
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Slide 37: The Resolutions
The Resolutions 37 37
Slide 38: Resolutions commentary
Resolutions commentary • AGM – 21 resolutions – Normal annual business – Purchase of ordinary and B shares – Directors submitting themselves for reappointment – Articles of Association 38
Slide 39: Questions
Questions 39 39
Slide 40: Poll card
Poll card Resolutions For Against Abstain Resolutions For Against Abstain 1 Toreceive and consider the Company’s | | oO (0 s11 Toreappoint Mr R WA Swannell as a oO oO Oo Accounts for the year to 31 March 2010 Director of the Company. and the Directors’ and Auditors’ reports. 12 To reappoint Mrs J S
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Slide 42: Resolutions 1 - 3
Resolutions 1 - 3 1 “That the Company’s Accounts for the year to 31 March 2010 and the Directors’ report, the Auditors’ report and the auditable part of the Directors’ remuneration report be and they are hereby received and considered” Proxy votes lodged for this Resolution: 99.55% For, 0.19% Discre
Slide 43: Resolutions 4 - 6
Resolutions 4 - 6 4 “That Mr J M Allan be and he is hereby reappointed as a Director of the Company” Proxy votes lodged for this Resolution: 99.44% For, 0.20% Discretionary, 0.16% Against and 0.20% Abstain 5 “That Mr A R Cox be and he is hereby reappointed as a Director of the Company” Proxy votes l
Slide 44: Resolutions 7 - 9
Resolutions 7 - 9 7 “That Mr W Mesdag be and he is hereby reappointed as a Director of the Company” Proxy votes lodged for this Resolution: 99.56% For, 0.19% Discretionary, 0.05% Against and 0.20% Abstain 8 “That Sir Adrian Montague be and he is hereby reappointed as a Director of the Company” Proxy
Slide 45: Resolutions 10 - 12
Resolutions 10 - 12 10 “That Mr M J Queen be and he is hereby reappointed as a Director of the Company” Proxy votes lodged for this Resolution: 97.53% For, 0.19% Discretionary, 2.03% Against and 0.25% Abstain 11 “That Mr R W A Swannell be and he is hereby reappointed as a Director of the Company” Pr
Slide 46: Resolutions 13 - 15
Resolutions 13 - 15 13 “That Ernst & Young LLP be and they are hereby reappointed as Auditors of the Company to hold office until the conclusion of the next General meeting at which Accounts are laid before the members” Proxy votes lodged for this Resolution: 98.06% For, 0.20% Discretionary, 0.55% A
Slide 47: Resolutions 16 - 18
Resolutions 16 - 18 16 To renew the Directors’ authority to allot shares Proxy votes lodged for this Resolution: 98.54% For, 0.20% Discretionary, 0.60% Against and 0.67% Abstain Special Resolutions 17 To renew the Directors’ authority to allot shares for cash Proxy votes lodged for this Resolution:
Slide 48: Resolutions 19 - 21
Resolutions 19 - 21 19 To renew the Company’s authority to purchase its own B shares Proxy votes lodged for this Resolution: 99.74% For, 0.20% Discretionary, 0.03% Against and 0.03% Abstain 20 That a General Meeting other than an Annual General Meeting may be called on not less than 14 clear days’ n