beginning, a path forward LMS Capital plc Adding value 15% at a - - PowerPoint PPT Presentation
A solid base, a new beginning, a path forward LMS Capital plc Adding value 15% at a time June 2010 We have a history; from here we will generate value Target Expectation Current vs. Projected NAV New deals will be targeted to produce 15%
NAV @ 31/3/10 NAVe @ 2014 NAVp @ 2020
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Stock price LMS is a new 30 year old story Investments will unwind as Funds return realisations and direct investments sold New deals will be targeted to produce 15% CAGR
Target Expectation
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Quoted Direct* Funds
Energy/Property Applied tech Consumer Other
* SFEP reallocated as direct
WFT PSK General VC & BO Funds SFEP managed
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Applied Technology, Software & Services Consumer & Retail Energy, Utilities & Property
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Jul ‘09 Sep ‘09 Mar ‘10 Apr ‘10 Jun ‘10
Focus on winners and cashflow
New deals
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People Experience alpha Glenn Payne Led renewables investment focus at First
at McKinsey & Co. Listed in Top 5 global renewable investors* Energy Pieter Hooft Buyout professional from Apax and JP Morgan
retail fitness business Applied Technology, Software & Services Consumer Products Ed Snow Technology services leader from Amadeus, formerly Deutsche Bank, co-founded and IPOed tech start up Applied Technology, Software & Services Scott Potter CEO of venture backed internet software company; corporate finance attorney for leading Silicon Valley law firm. Consumer Products and Consumer Services (Internet/Specialty Retail)
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* Institutional Investor News
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Value Start up Mature Entrepreneurial Evolution
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Key success factors
Investment 2004 through 2008 2008 Size/position Lead investor with active role in guiding management Lead investor and daily interaction with management Why did LMS win? First investment was facilitated by relationship with Method's chairman; we then led the expansion capital round in 2005. The YesTo founding team wanted the same "hands on" investment group that financed Method Outlook World's fastest growing natural homecare brand, Plan in place to double the business to $200m Fastest growing natural personal care line
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Investment July 2009 March 2010 Size/position Controlling investor, active Board position Active Board position, leading growth via M&A Why did LMS win?
management,
vendor
LMS know their business.
flexibility re follow
Outlook 50% revenue growth in 1st year and EBITDA from £2 to 6 million Growing market, multiple customer acquisition
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Investment May 2010 Controlling position Size/position Acquired 55% of $23m EV plus $15m incremental commitment Why did LMS win? 46 management presentations, 6 bids: LMS was the favoured (but not highest price) because we know the industry and can add value Outlook Small market share will grow and each new dollar has a 3 year payback
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utility solutions to property companies. NEP makes properties more profitable through advanced water, gas and electric sub- metering solutions, and utility construction services.
traditional electric utility. All energy for the property is measured at the primary meter, and NEP then provides power to the property and tenants.
the property and each individual unit, collect all meter data and bill each unit for its water consumption.
commercial properties are paying the lowest cost possible for their electric service.
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500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 MOIC Years
Which would you prefer? (MOIC or an exit?)
5 yrs 2.3xs 10 yrs 4.0xs 45 yrs 4343.0xs
A real listed holding company
New people Deeper financing skills Deal team capabilities In the money Funds Expanded network New geographies Corporate M&A Higher profile brand Deeper bench
Reputation Recent direct deals:
New direct deals:
companies into new markets
investments Use of LMS stock as currency – M&A, MOE
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30 years of success
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