3i Group plc (III) Q2 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning. Welcome to 3i's interim results presentation. As you can see from this morning's press release, this has been another good half for 3i. Our portfolio overall continues to generate healthy earnings growth in today's difficult macroeconomic environment. We delivered a total return of 10%, giving us a net asset value per share of £18.86p. We've ended the half with a gross investment return of 11% from private equity and 2% from the infrastructure team. We also produced a good level of cash income at 62 million pounds. Next, we have our Maramico chart showing the makeup of the 3i portfolio on a page. This is what you're investing in, in buying a 3i share. The underlying theme you can see here is resilience. And you can also see that the proportion of our portfolio in the resilient sectors of value for money, private label, infrastructure, and healthcare represent 85% of total portfolio value. We expect that proportion to keep growing over time. And this trend gives us real confidence in the continued compounding power of the 3i portfolio. Private equity has delivered another solid performance with 89% of our portfolio companies by value, growing their earnings in the 12 months to the 30th of June, 2023. We've seen another consistently strong performance from action, as well as good growth from our private label and healthcare portfolios. It's also been a good year of recovery for our travel related businesses, even if we have seen some softer booking weeks in October. But our companies with discretionary consumer, construction, or recruitment exposure have again seen some very challenging conditions. Sanashore is our only healthcare asset to have seen sales orders weaken this year, and management are taking decisive action to reduce costs during this period...