3i Group Plc · LSE:III
3i — Shareholder Meeting (May 2009)
22 slides from 3i's shareholder meeting presentation, May 27, 2009
Slide 1: General meeting
General meeting 27 May 2009 1
Slide 2: Baroness Hogg, Chairman
Baroness Hogg Chairman 2
Slide 3: Resolutions
Resolutions • To authorise the increase in the Company’s authorised share capital • To authorise the allotment of relevant securities in respect of the Rights Issue • To authorise the disapplication of pre-emption rights in respect of the Rights Issue (Special Resolution) • To authorise the amendmen
Slide 4: Michael Queen, Chief Executive
Michael Queen Chief Executive 4
Slide 5: Background: Analysis of 3i and Priorities
Background Analysis of 3i • Strategically advantaged core businesses • High-quality underlying portfolio • Conservative valuation approach • Level of debt too high Priorities • Preserve and optimise existing portfolio • Reduce net debt to about £1bn over next 12/15 months • Position the business for
Slide 6: A focused private equity business
A focused private equity business (as at 31 March 2009) 3i Group Buyouts Growth Capital Infrastructure Mid-market transactions in Europe Minority investments in established Investing principally in and Asia and profitable businesses across transportation, utilities and social Europe, Asia and the No
Slide 7: Strong cash flow generation
Strong cash flow generation 3,000 110% 90% 2,000 70% 1,000 50% 30% 0 10% (1,000) -10% (2,000) -30% -50% (3,000) -70% (4,000) -90% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year to Year 31 March to 31 March Investment (£m) Return flow (£m) Other (£m) Gearing (%,
Slide 8: Management actions
Management actions • £1.3 billion realisations, including £366m in last quarter • Acquisition of 3i QPE plc, generating £110m of net cash proceeds • Action to reduce expenses by c.15% • Sale of 9.5% of 3i Infrastructure (£61m) • CIO role created • Fundraising generating net cash of £699m Pro forma*
Slide 9: Fundraising
Fundraising • Equity capital raising of £732m • The fundraising will: – reduce pro forma* net debt to £1.1 billion – reduce pro forma* gearing from 103% to 42% – strengthen the balance sheet to protect against further falls in value – support investment grade rating – enable the Group to manage exis
Slide 10: Pro forma balance sheet
Pro forma balance sheet March 2009 March March pro forma* 2009 2008 £m £m £m Investment assets 4,022 4,050 6,016 Other net liabilities (276) (276) (321) 3,746 3,774 5,695 Net borrowings 1,103 1,912 1,638 Equity 2,643 1,862 4,057 3,746 3,774 5,695 Gearing 42% 103% 40% * On the basis of the fundraisin
Slide 11: Capital structure and liquidity
Capital structure and liquidity • Target is a conservative capital structure: – want to significantly reduce net debt to approximately £1bn – target an investment grade rating in order to enable access to debt capital markets – lower net debt reduces financial risk and returns volatility • Our gross
Slide 12: Benefits of fundraising
Benefits of fundraising Strengthens equity base Reduced Ratings security risk Reduced leverage Increased More flexibility on realising assets at better prices returns New investment opportunities potential 12
Slide 13: Summary
Summary • Market leading business • Conservative funding strategy to protect and enhance shareholder value • Rights issue will: – materially accelerate reaching objective of reducing net debt to approximately £1 billion – facilitate maintenance of an investment grade rating – enable the Group to man
Slide 14: Questions
Questions 14
Slide 15: Poll card
Poll card General Meeting Poll Card Resolutions For Against Abstain 1 To authorise the increase in share capital 2 To authorise the allotment of relevant securities in respect of the Rights Issue. 3 To authorise the disapplication of pre-emption rights in respect of the Rights Issue (Special Resolut
Slide 16: Resolution 1: increase in authorised share capital
Resolution 1 Proxy votes lodged for this Resolution: 94.86% For, 0.06% Discretionary, 0.96% Against and 4.12% Abstain To authorise the increase in the Company’s authorised share capital. (The full text of this Resolution is set out in the Notice of General Meeting) 16
Slide 17: Resolution 2: allotment of relevant securities
Resolution 2 Proxy votes lodged for this Resolution: 94.77% For, 0.06% Discretionary, 1.05% Against and 4.12% Abstain To authorise the allotment of relevant securities in respect of the Rights Issue. (The full text of this Resolution is set out in the Notice of General Meeting) 17
Slide 18: Resolution 3: disapplication of pre-emption rights
Resolution 3 Proxy votes lodged for this Resolution: 94.43% For, 0.07% Discretionary, 1.36% Against and 4.14% Abstain Special Resolution To authorise the disapplication of pre-emption rights in respect of the Rights Issue. (The full text of this Resolution is set out in the Notice of General Meeting
Slide 19: Resolution 4: amendment to Discretionary Share Plan
Resolution 4 Proxy votes lodged for this Resolution: 95.09% For, 0.07% Discretionary, 0.62% Against and 4.22% Abstain To authorise the amendment to The 3i Group Discretionary Share Plan. (The full text of this Resolution is set out in the Notice of General Meeting) 19
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Slide 21: Kevin Dunn, Company Secretary
Kevin Dunn Company Secretary 21
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