Icg Enterprise Trust Plc Gbp · LSE:ICGT
Icg Enterprise Trust Plc Gbp — ICG Enterprise Trust — FY2016 Earnings Presentation
30 slides from Icg Enterprise Trust Plc Gbp's earnings presentation, April 2016
Slide 1: ICG Enterprise Trust plc: Investing in long term growth
ICG Enterprise Trust plc Investing in long term growth Full year results presentation April 2016
Slide 2: Full year results presentation agenda
1 Full year results presentation April 2016 1. Introduction to ICG 2. ICG Enterprise 3. Performance 4. Investment activity 5. Portfolio 6. Balance sheet 7. Dividends and share buy-backs 8. Market 9. Conclusion Full year results
Slide 3: Introduction to ICG: Who are we?
2 1. 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 €2.6 billion ICG is listed on the
Slide 4: Specialist asset manager
3 1. 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 investme
Slide 5: Generating growth across our four asset classes
4 1. 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 Now €0.9bn AUM 1 Senior debt, mezzanine & CLO, loan mandates & Real estate investm
Slide 6: Areas of opportunity for ICG Enterprise
5 1. Introduction to ICG Areas of opportunity for ICG Enterprise Increase the rate of investment − Access to ICG sourced investment opportunities − The ICG balance sheet can underwrite large secondary & co-investment opportunities − Managing more capital will open up more opportunities to invest −
Slide 7: ICG Enterprise has a distinctive offering in the listed private equity sector
6 2. ICG Enterprise ICG Enterprise has a distinctive offering in the listed private equity sector OPTIMISED HYBRID STRATEGY CONSISTENT OUTPERFORMANCE Investing in a diversified portfolio of buy-outs The NAV and share price have consistently allowing for concentration amongst the top 30 outperformed
Slide 8: Highlights for the year ended January 16
7 3. Performance Highlights for the year ended 31 January 2016 Net asset value per share Share price Underlying value of the portfolio in local currencies +8.2% -1.9% +11.1% The NAV per share increased The share price1 fell 1.9% to This performance was split evenly 36p to 731p, extending its period
Slide 9: The NAV and share price outperformed the FTSE All-Share Index
8 3. Performance The NAV and share price outperformed the FTSE All-Share Index Jan-16 Jan-15 Total return Net asset value per share 730.9p 695.2p +8.2% Share price 545.0p 575.0p -1.9% FTSE All-Share Index 3,336 3,622 -4.6% The share price is now*, at 555p, 1.8% above the year end price Notes: *Clo
Slide 10: The portfolio made good progress, increasing by 11.1% in local currencies
9 3. Performance The portfolio made good progress, increasing by 11.1% in local currencies % of opening Year to Jan-16 % of opening NAV £m portfolio Realised & unrealised gains 11.1% 9.5% 48.0 Currency 1.0% 0.8% 4.3 Total portfolio 12.1% 10.3% 52.3 Expenses and other (2.7)% (13.9) Buy-backs 0.6% (9.
Slide 11: Share price and NAV outperform peer group and Index
10 3. Performance Share price and NAV outperform both the peer group and the Index over 1, 3, 5 and 10 years Years to Jan-161 1 3 5 10 Total return ICG Enterprise NAV growth 8% 23% 47% 108% ICG Enterprise share price growth -2% 20% 93% 75% FTSE All-Share Index -5% 12% 30% 67% Peer group2 average NAV
Slide 12: Outperformance of the Index on a cumulative basis
11 3. Performance Outperformance of the Index in 19 out of 20 years on a cumulative basis Years to Jan-16 1 2 3 4 5 6 7 8 9 10 Total return ICGT NAV 8% 14% 23% 37% 47% 70% 78% 56% 80% 108% ICGT share price -2% 3% 20% 66% 93% 97% 226% 31% 64% 75% FTSE All-Share Index -5% 2% 12% 31% 30% 49% 93% 35% 43
Slide 13: The portfolio has continued to generate strong cash inflows
12 4. Investment activity The portfolio has continued to generate strong cash inflows Proceeds of £120 million are equivalent to 28% of the opening portfolio Full realisations accounted for £82 million of proceeds Notes: 1. Excludes proceeds from secondary sales Full year results
Slide 14: Full realisations continued to generate significant uplifts
13 4. Investment activity Full realisations continued to generate significant uplifts to prior valuations1 Year ended Year ended Year ended Jan-14 Jan-15 Jan-16 Valuation uplift1 36% 35% 22% Number of full realisations 33 39 41 Multiple of original cost 2.1x 2.1x 1.9x Investments made since the fi
Slide 15: New investment was almost half the exceptionally high level last year
14 4. Investment activity New investment was almost half the exceptionally high level last year All types of investment were lower than last year £ million 140 120 100 9 57 15 80 3 19 18 36 9 30 60 14 23 18 19 5 7 10 18 5 40 79 65 44 52 20 43 3 45 41 39 37 3 18 0 Dec-06 Dec-07 Dec-08 Dec-09 Jan-11
Slide 16: We completed a mix of primary, secondary and co-investments
15 4. Investment activity We completed a mix of primary, secondary and co-investments in the year Primary commitments Secondary purchases Co-investments Year to 31 January 2016 Post year end In the short time since joining ICG we are seeing additional investment opportunities Full year results
Slide 17: The portfolio remains balanced and well diversified
16 5. Portfolio The portfolio remains balanced and well diversified The portfolio strikes a balance between diversification and concentration − Exposure to almost 400 underlying companies, across a wide range of geographies and sectors − The top 30 underlying companies represent 49.5% of the portf
Slide 18: Pre crisis investments continued to fall as a proportion of the portfolio
17 5. Portfolio Pre crisis investments continued to fall as a proportion of the portfolio Analysis of the portfolio between pre and post 2008 investments 100% 90% 23% 34% 80% 45% 70% 60% 69% 60% 50% 40% 77% 66% 30% 55% 20% 40% 31% 10% 0% Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Post crisis Pre crisis Full
Slide 19: The Top companies continued to perform well
18 5. Portfolio The Top 30 companies continued to perform well The Top 30 companies grew revenues and EBITDA by 5% and 10% respectively − Aggregate FTSE All-Share revenues fell by 17% and EBITDA fell by 14% Top 30 EBITDA growth All-Share EBITDA growth 40% 36% 30% 20% 14% 10% 13% 13% 14% 12% 10% 8%
Slide 20: The top investments continued to be valued conservatively
19 5. Portfolio The top 30 investments continued to be valued conservatively The Top 30 investments were valued at 9.4x EBITDA − This has been broadly consistent for the last 5 years Over the same period the EBITDA multiple of the FTSE All-Share Index has ranged from 6 to over 12 12.0x 10.0x 8.0
Slide 21: The balance sheet is well positioned to withstand economic uncertainty
20 6. Balance sheet The balance sheet is well positioned to withstand economic uncertainty Jan-16 Jan-15 Jan-16 Jan-15 £m £m % % Investments1 428 432 80% 84% Net current assets 105 85 20% 16% Total assets less current liabilities 533 517 100% 100% Outstanding commitments 254 234 Undrawn bank facilit
Slide 22: Total distributions for the year totalled £17m
21 7. Dividends and share buy-backs Total distributions for the year totalled £17m The Company repurchased 1.5 million shares at a cost of £9.1m − At an average discount to the estimated prevailing NAV of 18% this improved NAV per share by 0.6% A first ever interim dividend of 5.0p per share was
Slide 23: High levels of fundraising activity should drive continued realisations
22 8. Market High levels of fundraising activity should drive continued realisations Fundraising for European buy-out funds in 2015 was up 45% to €45bn The level of uninvested commitments remains high This provides considerable support for future realisations 180 European Buy-out Dry Powder 16
Slide 24: There was a significant step up in the value of buy-outs in the year
23 8. Market There was a significant step up in the value of buy-outs in the year The value of European buy-outs grew 37% (+€36bn) in the year to €132bn This was driven by a €29bn increase in activity in continental Europe. The UK market grew €7bn (+28%) The value of transactions in the UK mid
Slide 25: ICG Enterprise is well positioned for future growth
24 9. Conclusion ICG Enterprise is well positioned for future growth The environment for realisations remains favourable and managers will be seeking exits − The post-crisis vintages are expected to drive performance The portfolio continues to perform well − The Top 30 companies grew EBITDA in t
Slide 26: Appendices
25 Appendices Full year results
Slide 27: Historic share price discount to prevailing NAV
26 Historic share price discount to prevailing NAV Full year results
Slide 28: ICG Team
27 ICG Team Christophe Evain Benoit Durteste Philip Keller Emma Osborne Executive Director and Chief Executive Director and Head Executive Director and Chief Head of Private Equity Fund Executive Officer of European Investments Financial Officer Investments (“PEFI”) Kane Bayliss Colm Walsh Fiona Bel
Slide 29: Useful information
28 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 30: Legal notice
29 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