Slide 1: Uncertain environment highlighting our strengths
Uncertain environment highlighting our strengths Results for six months to 30 September 2022 17 November 2022 PRIVATE AND CONFIDENTIAL
Slide 2: Agenda
Agenda • Business performance • Financial results Benoît Durteste CEO and CIO Questions Vijay Bharadia CFOO PRIVATE AND CONFIDENTIAL 1
Slide 3: Long-term track record
Long-term track record FEE-EARNING AUM CLIENTS LTM FEE INCOME2 LTM FMC PBT September 2017 $22bn1 326 £154m £84m September $57bn 618 £515m £309m 2022 2.6x 1.9x 3.3x 3.7x Growing, broadening and strengthening ICG 1 €18.5bn converted at EUR:USD 1.1812 as at 30 September 2017; 2 Third-party fee income P
Slide 4: Building resilience and growth levers
Building resilience and growth levers • Investing in companies with strong market positions • Supporting portfolio companies to drive growth Fund performance • Levering companies prudently • Anchoring fund performance through disciplined approach to realisations • Scaling platform Strategically • Br
Slide 5: Succeeding in today’s environment
Succeeding in today’s environment WHAT WE ARE SEEING HOW WE ARE POSITIONED Focusing on scaled, diversified managers Client Fundraising environment nuanced perspective Direct lending and structured investments Demand today for direct lending, real assets “Traditional” buyout volumes have slowed Fundr
Slide 6: Business performance
Business performance PRIVATE AND CONFIDENTIAL
Slide 7: H1 performance
H1 performance 1 FUNDRAISING AUM INVESTMENT ACTIVITY Third-party fee-earning Fund performance Deployment Realisations $6bn “Growing Up” “Growing Out” $57bn Strong operational $5bn $3bn performance Europe VIII LP Secondaries I 2 Strategic Equity IV 16% YoY H1’22: $8bn H1’22: $3bn Asia Pacific IV Fund
Slide 8: Robust fundraising in the period
Robust fundraising in the period FUNDRAISING OVER TIME KEY FUNDRAISING IN H1 FY23 Europe VIII $1.2bn Strategic Equity IV $1.2bn Senior Debt Partners $0.9bn CLOs $0.8bn Asia Pacific IV $0.5bn H1 $13.8bn Sale and Leaseback II $0.4bn H1 H1 $6.7bn $6.9bn H1 $5.7bn $5.1bn H1 $2.9bn FY18 FY19 FY20 FY21 FY
Slide 9: Client base growing
Client base growing 1 GROWTH DIVERSIFICATION Five year CAGR: 14% 19% 16% 35% 39% 586 +6% 618 Geography 13% Type 22% 15% FY22 H1'23 24% 17% EMEA (excl. UK and Ireland) Pension funds Insurance companies Asia Pacific SWFs Asset managers WHAT WE ARE SEEING WHAT WE ARE DOING Americas UK and Ireland Other
Slide 10: Robust investment activity
Robust investment activity DEPLOYMENT1 REALISATIONS1 1 H1 $8.4bn H1 $5.0bn H1 $3.9bn H1 H1 $3.5bn H1 H1 $2.9bn $2.2bn $2.5bn $2.4bn H1 H1 $2.1bn H1 $1.3bn $1.4bn $1.0bn FY18 FY19 FY20 FY21 FY22 H1'23 FY18 FY19 FY20 FY21 FY22 H1'23 • Breadth of product offering and flexibility of solutions across the
Slide 11: Flexible structuring in practice
Flexible structuring in practice From our European Corporate AGM, 2022 PRIVATE AND CONFIDENTIAL Past performance is not a reliable indicator of future results 10
Slide 12: Portfolio companies’ operational performance
Portfolio companies’ operational performance 1 LTM EBITDA GROWTH NET SENIOR LEVERAGE2 European Corporate 15% 4.0x Strategic Equity 14% 4.8x Senior Debt Partners 16% 5.0x Underlines quality across our portfolios 1 Weighted-average by unrealised by for European Corporate pro forma for M&A, median of a
Slide 13: Performance of key funds
Performance of key funds GROSS MOIC Europe VI (2018) Europe VII (2021) 1.7x 1.7x 2.0x 2.1x 2.1x 1.5x 1.5x 1.9x European Corporate Mar-21 Sep-21 Mar-22 Sep-22 Mar-21 Sep-21 Mar-22 Sep-22 Strategic Equity III (2021) Strategic Equity IV (still investing) 1.6x 2.2x 2.3x 1.3x 1.5x 1.7x Strategic Equity n
Slide 14: Strategic strength
Strategic strength The ICG platform is larger, broader and stronger than ever Performance in H1 underlines benefits of our flexibility and diversification Our investment approach and track record are differentiated and valuable ✓ Direct lending, structured equity and real assets support fundraising
Slide 15: Financial results
Financial results PRIVATE AND CONFIDENTIAL
Slide 16: Resilient financial model delivering results
Resilient financial model delivering results THIRD-PARTY AUM THIRD-PARTY FEE INCOME FMC PBT DIVIDEND PER SHARE NAV PER SHARE $65.6bn £265.3m £143.7m 25.3p 658p 14% YoY1 33% YoY 19% YoY 35% YoY FY22: 696p Locked-in capital Strong capitalisation ~95% management fees, Attractive operating Progressive d
Slide 17: Currency fluctuations impact USD and GBP reporting
Currency fluctuations impact USD and GBP reporting CURRENCY EXPOSURE IMPACT IN THE PERIOD1 Reported AUM ($) 10% 9% 14% 16% Fee-income (£)1 Management FMC cost fees1 54% base1,2 35% 61% FMC PBT (£)1 Management fees: +£11m Change in FV of FX hedges: £(46)m EUR USD GBP Other Of which £(5)m relates to t
Slide 18: AUM and management fee visibility
AUM and management fee visibility FEE-EARNING AUM DEVELOPMENT FEE GENERATION POTENTIAL +6% Constant currency basis $58.3bn +$4.1bn $(3.8)bn $57.3bn $57.3bn $8.3bn +$3.4bn $(4.9)bn fee-earning AUM not-yet- AUM earning fees ~£464m Potential annual ~£70m management fees1 Potential annual management fee
Slide 19: Fee income growth
Fee income growth Five year CAGR: 28% LTM £515m FY £449m FY £334m FY H1 £278m £265m FY £220m H1 FY £199m H1 £167m H1 £154m H1 £136m H1 £105m £78m FY18 FY19 FY20 FY21 FY22 H1'23 Structured and Private equity Private Debt Real Assets Credit Management fee-centric fee income PRIVATE AND CONFIDENTIAL Pa
Slide 20: Strong operating margin while investing for the future
Strong operating margin while investing for the future FMC OPERATING MARGIN GROUP PERMANENT HEADCOUNT H1 FY23 H1 FY22 Five year CAGR 14% Employee costs £88m £82m Administrative costs £22m £25m 525 470 Depreciation and amortisation £3m £4m 408 Total operating expenses £113m £111m 336 297 Operating ma
Slide 21: Growing FMC profits
Growing FMC profits FMC PBT Five year CAGR 27% LTM £309m FY £286m FY £202m FY £66m £183m FY £144m £5m £144m H1 £121m £(46)m £(2)m FY H1 H1 £95m £90m H1 £85m +19% £64m H1 £44m FY18 FY19 FY20 FY21 FY22 Third-party fee Movement in FV Other Expenses H1'23 income of FX derivatives income Dividend of 25.3
Slide 22: Capitalisation and net asset value
Capitalisation and net asset value LIQUIDITY PROFILE DEBT PROFILE CREDIT PROFILE 100% undrawn 100% fixed rate £718m £550m • Upgraded by S&P during period to BBB Cash and cash RCF 3.33% 4.2 years • Substantial headroom to covenants equivalents (undrawn) Weighted average Weighted average • Medium term
Slide 23: Resilient balance sheet investment portfolio
Resilient balance sheet investment portfolio CHANGE IN BALANCE SHEET INVESTMENT PORTFOLIO (1)% £2,822m £196m £2,867m Warehoused £53m investments £(122)m £(29)m 2 Income Credit 12.4% Unrealised 1 £(80)m Five-year average NIR Real Assets (losses) Private Debt NIR % H1'23 Structured and H1 FY23 NIR (%)
Slide 24: Medium-term guidance unchanged
Medium-term guidance unchanged FUNDRAISING PERFORMANCE FEES FMC OPERATING MARGIN NET INVESTMENT RETURNS At least $40bn fundraising in Performance fees to represent In excess of 50% Low double-digit percentage aggregate between 1 April 10 - 15% of Third-Party Fee points NIR over the medium 2021 and 3
Slide 25: Uncertain environment highlighting our strengths
Uncertain environment highlighting our strengths Building AUM base through cycles: "growing up" and "growing out" Long-term predictability of management fee income not impacted by valuation movements High operating margin with expansion potential as strategies scale Robust balance sheet with through
Slide 26: Questions?
Questions? PRIVATE AND CONFIDENTIAL
Slide 27: About ICG
About ICG ICG is a global alternative asset manager specialising in providing OUR VISION OUR PURPOSE flexible solutions across the capital structure. We manage funds on behalf of our global client base across four asset classes: Structured and Private Equity, Private Debt, Real Assets, and Credit. W
Slide 28: Broad waterfront of strategies
Broad waterfront of strategies Structured & Private Equity Private Debt Real Assets Credit Strategic Equity 18% + LP Secondaries Target Gross IRR Life Sciences1 US Mid-Market1,2 European Corporate Sale and Leaseback 12 - 18% European Mid-Market North American Private Debt Infrastructure Equity Europ
Slide 29: Disclaimer
Disclaimer PRIVATE AND CONFIDENTIAL 28