3i Group plc · LSE:III
3i — Shareholder Meeting (June 2019)
27 slides from 3i's shareholder meeting presentation, Jun 27, 2019
Slide 1: Annual General Meeting
Annual General Meeting 27 June 2019
Slide 2: Simon Thompson, Chairman
Simon Thompson Chairman
Slide 3: Today's agenda
Today’s agenda Introductory remarks – Simon Thompson Review of the year – Simon Borrows Q&A – Simon Thompson Formal business including Resolutions – Simon Thompson 3
Slide 4: The Board of Directors and General Counsel
The Board of Directors and General Counsel 4
Slide 5: A clear strategy and consistent execution has delivered strong returns
A clear strategy and consistent execution has delivered strong returns.
Slide 6: A strong result for the year
A strong result for the year Year to 31 March 2019 Group Private Equity Infrastructure Corporate Assets Total return Total dividend Proprietary capital Cash income Reinvestment in on equity per share invested Scandlines 18% 35p £332m £82m £529m NAV per share Net cash Realisation 3iN TSR Dividend inc
Slide 7: Total dividend set at 35 pence per share
Total dividend set at 35 pence per share Our dividend policy aims to maintain or grow the dividend year-on-year subject to: • maintaining our conservative balance sheet strategy, which excludes structural gearing at the Group level • careful consideration of the outlook for investments and realisati
Slide 8: Investing in 3i
Investing in 3i • The MIFID II and PRIIPS regulations came into effect in 2018 • Under these regulations, 3i is considered to be a “fund” and not a company, and has to publish or make available information on its costs and charges in a format comparable to the costs and charges disclosures of other
Slide 9: Simon Borrows, Review of the year
Simon Borrows Review of the year
Slide 10: Private Equity: market context vindicates our approach
Private Equity The market context vindicates our approach to investment We have clear • We invest in the true mid market (EV of €100-500m) investment filters • We focus on clearly defined sectors and geographies We drive • We identify long-term secular growth trends earnings growth • We invest with
Slide 11: Approach to value creation: buy-and-build
Private Equity Our approach to value creation - spotlight on buy-and-build Why buy-and- What makes a What is required build? good buy-and- to get this build candidate? strategy right? • Focus on smaller • Growth underpinned • Deep sector initial investments by a clear secular knowledge growth trend
Slide 12: Spotlight on buy-and-build: Cirtec Medical
Private Equity Spotlight on buy-and-build: Cirtec Medical Outsourced Metal stamping Precision nitinol Design of custom Thin film sensor medical device for medical tubing for high ASICs for substrates manufacturing device end medical medical device serving platform applications device market continuo
Slide 13: Good earnings performance drove portfolio value growth
Private Equity Good earnings performance drove portfolio value growth of £916m in FY2019 Largest value increases (>£20m) Largest value declines (>£20m) Portfolio Value growth Value at Key driver of Portfolio Value decline Value at Key driver of company1 (excl FX) 31 Mar 2019 value movement company (
Slide 14: The portfolio is weighted towards our better assets
Private Equity The portfolio is weighted towards our better assets The buckets Selected examples % of value FY20191 FY2018 1 Longer-term hold; value creation Action, Audley, Cirtec, Ponroy, ICE c.69% c.67% 2 Strong performers; performing in line with investment case Hans Anders, WP, Royal Sanders, L
Slide 15: Action – continued strong growth in 2018
Private Equity Action – continued strong growth in 2018 2018 +23% revenue growth +16% EBITDA growth 1,325 stores 230 net new stores Highlights An unbroken high growth track record A truly pan-European footprint EBITDA (€m) Sales (€m) Number of stores +28% CAGR 25 378 288 +30% CAGR 167 5 +27% CAGR 42
Slide 16: Action – ample potential for growth in existing and new markets
Private Equity Action – there is ample potential for growth in existing and new markets NL BE LU France Austria Germany Poland Other EU Medium-term objective to double current store base 16
Slide 17: Continued good realisations track record
Private Equity Continued good realisations track record Selected full realisations (year invested, proceeds, money multiple, uplift) Scandlines SLR Etanco OneMed £1,235m1 proceeds 2007/2013 2008 2011 2011 £835m1; 7.7x, 4% £30m; 1.3x, 3% £91m; 1.3x, 36% £96m; 0.9x, 118% Post-restructuring investments
Slide 18: Infrastructure: Another extraordinary year for 3iN
Infrastructure Another extraordinary year for 3iN 3iN relative share price performance – FY2019 FY2019 highlights (rebased to 3iN, pence per share) 300 3iN 280 FTSE 250 33% TSR Listed infrastructure investment companies* 260 8.65pps Total dividend 240 £377m Investments and 220 commitments 200 £333m
Slide 19: We are now generating a sustainable operating cash profit
We are now generating a sustainable operating cash profit Operating cash profit/(loss) (£m) Growing fee and portfolio income • Regular cash dividends from Scandlines • Managed Infrastructure 28 Acquisitions Fund 11 45 37 1 11 46 • 3i European Operational Projects 5 Fund (32) • US Infrastructure plat
Slide 20: The Resolutions
The Resolutions
Slide 21: Resolutions commentary
Resolutions commentary • 16 ordinary resolutions • 4 special resolutions • Normal annual business 21
Slide 22: Poll card
Poll card AGM poll card The Board recommends you vote FOR resolutions 1 to 20 Resolutions For Against Abstain Resolutions For Against Abstain " ibehoaetaorcoradmatoepat Oe i eevee =—EE ‘0 approve the Directors’ remuneration report. oO oO oO 3 Todeclare a dividend oog 13. To reappoint Ernst & Young L
Slide 23: Resolutions 1 - 4
Resolutions 1 - 4 1. That the Company’s accounts and the reports of the Directors and the Auditor for the year to 31 March 2019 be and are hereby approved 2. That the Directors’ remuneration report for the year to 31 March 2019 be and is hereby approved 3. To declare a dividend of 20p per ordinary s
Slide 24: Resolutions 5 - 9
Resolutions 5 - 9 5. That Mrs C J Banszky be and she is hereby reappointed as a Director of the Company 6. That Mr S A Borrows be and he is hereby reappointed as a Director of the Company 7. That Mr S W Daintith and he is hereby reappointed as a Director of the Company 8. That Mr P Grosch be and he
Slide 25: Resolutions 10 - 13
Resolutions 10 - 13 10. That Ms C L McConville be and she is hereby appointed as a Director of the Company 11. That Mr S R Thompson be and he is hereby reappointed as a Director of the Company 12. That Mrs J S Wilson be and she is hereby reappointed as a Director of the Company 13. That Ernst & Youn
Slide 26: Resolutions 14 - 20
Resolutions 14 - 20 14. That the Board be and it is hereby authorised to fix the Auditor’s remuneration 15. To renew the authority to incur political expenditure 16. To renew the authority to allot shares 17. To renew the Section 561 authority 18. To give additional authority under Section 561 19. T
Slide 27: Slide 27