ICG plc FY12 Results 22 May 2012 Intermediate Capital Group plc ICG - - PowerPoint PPT Presentation

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ICG plc FY12 Results 22 May 2012 Intermediate Capital Group plc ICG - - PowerPoint PPT Presentation

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ICG plc FY12 Results 22 May 2012 Intermediate Capital Group plc ICG and Intermediate Capital Managers Limited are authorised and regulated in the United Kin gdom by the Financial Services Authority Highlights Operational highlights

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Intermediate Capital Group plc “ICG” and Intermediate Capital Managers Limited are authorised and regulated in the United Kingdom by the Financial Services Authority

ICG plc FY12 Results

22 May 2012

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Intermediate Capital Group plc 2

Highlights

 Operational highlights

 Progress on fund management platform: products and distribution in place  AUM of €11.4bn  Down 3% due to CLO runoff, credit fund raising impacted by sovereign crisis  Mezzanine AUM up 7% (Fund V, Longbow)  Portfolio companies showing resilience  8 exits at 1.9x and 22% IRR

 Financial highlights

 FMC Profit before tax: £37.7m vs £35.9m in FY11  Adjusted IC Profit before tax*: £161.1m vs £154.2m in FY11  Adjusted Group Profit before tax*: £198.8*m vs £190.4m in FY11  Further debt extensions  Full year dividend of 19 pence vs 18 pence last year

* Excluding £45.0m positive impact of one-off release of previously accrued costs as we terminated our MTIS remuneration scheme; and fair value movement on derivatives (FY12: nil; FY11: loss of £3.8m)

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Intermediate Capital Group plc

Market Update

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Intermediate Capital Group plc 4

Marked Slowdown in Europe in H2

 Rapid deterioration of economic outlook and uncertainty over the Euro  Sovereign crisis put a stop to 18 months of renewed activity in Europe  Limited short term visibility due to volatility

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Intermediate Capital Group plc 5

Long term trends remain favourable

 European LBO Market:

 Withdrawals of European banks  European CLOs capacity reduces by €26 billion over the next two years  PE Dry Powder still unchanged at €175 billion

 US LBO market

 Transaction volumes recovering  Highly competitive while volumes remain at lower levels

 Asia LBO Market

 Region barely affected by crisis, less financing problems  More attractive in the sponsorless space

 Real Estate Commercial debt

 Banks disengaging  No residual Legacy capacity as CMBS out of reinvestment periods

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Intermediate Capital Group plc

Portfolio Update

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 Slowdown in exits due to market volatility and less liquidity to support new transactions  8 investments exited (and one partial exit), £365m of repayments, £113m of PIK and £74m of capital gains  Average Returns of 22%  Cash Multiple 1.9x

Intermediate Capital Group plc 7 Intermediate Capital Group plc 7 Intermediate Capital Group plc 7

Exits

Continued flow

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SLIDE 8

Intermediate Capital Group plc 8

New Investments

Slowdown in H2 due to environment

 £122m of new investments

 Reinvestment in Tegel and BvD  New investment in HMG, Ventura and 2 investments in China

 Low volumes in Europe in H2 coupled with extremely cautious approach to investments given economic uncertainty  Good momentum since year end

 Invested in third bank portfolio of discounted loans and second sponsorless transaction in Australia  Exclusivity on two transactions, advanced stages on a number of others  Strong pipeline but visibility remains limited in volatile environment

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Intermediate Capital Group plc 9

Investment portfolio

Performance vs. prior year shows resilience

Percentage of assets performing at or above prior year 0% 10% 20% 30% 40% 50% 60% 70% 80% Jun- 08 Sep- 08 Dec- 08 Mar- 09 Jun- 09 Sep- 09 Dec- 09 Mar- 10 Jun- 10 Sep- 10 Dec- 10 Mar- 11 Jun- 11 Sep- 11 Dec- 11 Mar- 12

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Intermediate Capital Group plc 10

Top twenty assets

Strong performance continues

Private clinic manager France

↓

Textile rental and cleaning France

↑

Inspection, certification and technological services Spain

↑

Elderly care homes Sweden

↑

Share registry and fund administration services Australia

↑

Speciality chemicals for the construction industry France

↑

Cattle tagging UK

↑

Waste management solutions provider UK

↑

Airport operator UK

↑

PVC Flooring France

↑

Supplier of fire protection systems and services Germany

→

Drug development and manufacturer France

↑

Provider of services and technical solutions for utilities Germany

↑

Telephone networks US

↑

Diversified fund of senior loans Europe Auto Equipment France

↓

Leisure & entertainment Germany

↑

Software solutions Italy

↑

Cinema operator Australia

↓

Provider of security services Italy

↑

Business Country Vs Last Year

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Intermediate Capital Group plc 11

Provisions for Portfolio Companies

Positive underlying trend in difficult environment

Loan Stocks

50 100 150 200 250 300 FY 08 FY 09 FY 10 FY 11 FY 12 £m

Gross Provisions Write-backs

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Intermediate Capital Group plc 12

Fund Management

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 AUM of €11.4 bn

 Down 3% due to CLO runoff, credit fundraising impacted by sovereign crisis  Mezzanine AUM up 7% (ICG Europe Fund V, ICG Longbow)

  • 2,000

4,000 6,000 8,000 10,000 12,000 14,000 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY08 FY09 FY10 FY11 FY12 Mezzanine Funds CFM Funds 13

Third party funds under management

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Intermediate Capital Group plc 14

Fund Management Company Growth

Long term trend support our ambitions

 Institutions are increasingly drawn to alternative yield

 Uncertainty makes cash distributions attractive  Regulatory frameworks makes equity a capital intensive asset class  Traditional fixed income asset classes generate low returns

 Good progress in building our platform

 Distribution  Products

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 2 full time staff  Focus on servicing existing investors  14 full time staff

 5 Distribution Executives with global reach  8 sales support & client services

 Recruited new Head of Distribution

 Andreas Mondovits  20 years’ experience  Previously worked at UBS GAM

Investor Management Group

Strengthened distribution team

Intermediate Capital Group plc 15

March 2010 March 2012

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Intermediate Capital Group plc 16

Delivering Alternative Yield

We offer attractive yield solutions to institutional investors

Product Net Yield German Government Bonds 0.9% Corporate Bonds 2.3% Leveraged Loans 6–10% High Yield Bonds 12% Real Estate Mezzanine 14% Corporate Mezzanine 16%

Traditional Fixed Income Alternative Yield

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Intermediate Capital Group plc 17

ICG Products

Broadened offering

Product Summary Target Yield

ICG Europe Fund V

  • ICG’s latest European mezzanine fund
  • Targeting final close of €2bn in July 2012

16% Senior Debt Partners • Direct lending to European corporates

  • Launch imminent

10% European Loan Fund

  • Liquid European Senior Leveraged Loans
  • Pooled vehicle open for commitments

6-8% High Yield Fund

  • Liquid European High Yield Bonds
  • Pooled UCITS vehicle since Dec-09

8-12% Total Credit

  • Combined loans and bonds investments
  • Launch imminent

10% Segregated Mandates

  • A number of segregated mandates to

invest with specific parameters (single or multi asset classes) 5-15%

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Intermediate Capital Group plc 18

Delivering Alternative Yield

Organic growth through geographic expansion

Product Net Yield Europe Asia US Leveraged Loans 6–10%  High Yield Bonds 12%  Real Estate Mezzanine 14% UK Corporate Mezzanine 16%   IC only

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 Real Estate Senior Debt

 Longbow acquired in December 2010 – delivering ahead of expectations  Look at opportunities beyond UK mezzanine

 Asset-backed Securities  Infrastructure  Secondaries

Intermediate Capital Group plc 19

Delivering Alternative Yield

Expansion into adjacent asset classes

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Intermediate Capital Group plc 20

Priorities for Growth in FY 13

 Mezzanine

 Final close on ICG Europe Fund V  Launch of Asia Pacific successor fund  Launch of ICG Longbow successor fund

 CFM

 Launch Senior Debt Partners fund  Market segregated mandates and open ended funds

 US strategy  Good momentum since year end but visibility limited

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Intermediate Capital Group plc

Financial Overview

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Intermediate Capital Group plc 22

Financial Highlights

 Pre-tax profit* of £198.8m vs £190.1m in FY11

 FMC Profit before tax: £37.7m vs £35.9m in FY11  IC Profit before tax*: £161.1m vs £154.2m in FY11

 £227m of debt extension and agreed with our key banks, subject to documentation, to roll 2013 maturities to June 2016, current headroom of c. £505m  Cash Core Income of £113.5m vs £106.7 in FY11; Dividend up 1p to 19p  End of transition to new compensation schemes resulting in £45m accrual write back

*Excluding £45m one off release of MTIS costs previously accrued and fair value movement of derivatives

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Intermediate Capital Group plc 23

Segmental Reporting

Strong underlying growth

67.7 154.2 161.1 IC Profit* 105.8 0.1 77.1 (161.8) (60.7) 3.4 209.7 38.0 (40.3) 1.9 76.4 186.3 198.8 Profit before tax* (3.8) 101.3 (70.9) (67.0) 11.0 179.8 35.9 (50.0) 4.1 81.8 0.0 103.3 (70.6) (62.7*) 7.6 183.5 37.7 (56.4) 2.9 91.2 FVM derivatives Admin expenses Impairments Net capital gains Div & other income Net Interest Income Admin expenses Other income FM Profit Fee income Fund Management Company Investment Company Group March 2012 March 2011 March 2010 £m

* Excluding £45 one-off release relating to termination of MTIS

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Intermediate Capital Group plc 24

9,036 8,679 668 416 13 622

7000 8000 9000 10000

Mar-11 New Mezzanine Realisations Mezzanine New CFM Realisations CFM Mar-12

€m

Third party AUM

Good momentum in mezzanine funds

 Third party AUM down 3% to €8.7bn due to older CLOs runoff, mezzanine AUM up 7%

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Intermediate Capital Group plc 25

Third party fee income

Growth in high margin funds drives fee income

10 20 30 40 50 60 70 FY 08 FY 09 FY 10 FY 11 FY 12 £m

Mezzanine Funds CFM Funds

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Intermediate Capital Group plc 26

35.9 37.7 9.4 1.2 1.8 4.6

5 10 15 20 25 30 35 40 45 50 FY11 Fee income Other income Staff costs Operating costs FY12 £m

Fund Management Company

Increase in fee income drives FMC profit

Profit before tax of £37.7m, up 5%

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Intermediate Capital Group plc 27

Net interest income analysis

NII stable despite lower IC portfolio

50 100 150 200 250 300 FY 10 FY 11 FY 12 £m

Interest Income Interest Expense

 NII at £183.5m, up 2%

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Intermediate Capital Group plc 28

Long terms provisions

Net provisions remains at historical average level

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% FY 95FY 96FY 97FY 98FY 99FY 00FY 01FY 02FY 03FY 04FY 05FY 06FY 07FY 08FY 09FY 10FY 11FY 12

Average pre-crisis: 2.4%

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Intermediate Capital Group plc 29

Gains on Investments

High level of net gains maintained despite difficult market

Realised gains 73.8 127.2 Unrealised gains 44.2 6.2 Total gains 118.0 133.4 MTIS (14.7) (31.0) Net gains 103.3 102.4* FY12 FY11 £m

 Unrealised gains

 Fair value increase on unrealised equity investments: £45.1m  Fair value decrease on unrealised equity investments: £0.9m

* Includes £1.1m gain on Resource Europe CLO acquisition (in FMC P&L)

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Intermediate Capital Group plc 30

Top AFS and FVTPL assets

Resilient equity portfolio

 AFS assets  FVTPL assets

Allflex Livestock identification systems UK £65.4m £47.9m £24.2m Intelsat Fixed satellite services USA £45.6m £59.2m £32.7m AAS Link Share registry and fund administration Australia £15.9m £19.9m £5.9m Menissez Food & Consumer Products France £14.8m £15.2m £14.9m Cartiere/Lecta Printing Italy £12.9m £10.8m £0.1m Elior Catering France £9.8m £13.9m £9.6m Meyn Chicken processing Netherlands £9.0m £5.1m £0.2m AU Bon Pain Catering US £8.4m £5.8m £6.5m Company

Business Country Value at 31/03/12 Value at 30/09/11 Value at 31/03/11

Gerflor PVC flooring France £13.1m £12.4m £12.4m Company

Business Country Value at 31/03/12 Value at 30/09/12 Value at 31/03/11

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Intermediate Capital Group plc 31

 Profit before tax of £161.1m

Investment Company

154.2 3.7 3.4 4.2 2.1 0.3 100 110 120 130 140 150 160 170 FY 11 NII Div & other income Costs Impairment Net Capital Gains FY 12 £m 161.1

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Intermediate Capital Group plc 32

Operating costs excluding incentive schemes

Salaries increase reflects growth of distribution group

10 20 30 40 50 60 FY 08 FY 09 FY 10 FY 11 FY12 £m

Salaries Administrative costs Onerous Lease

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Intermediate Capital Group plc 33

Incentive Schemes Excluding MTIS on gains

H2 11 H1 11 FY10 Awards 4.3 9.6 12.6 FY11 Awards 12.6 10.9

  • FY 12 Accruals

14.6

  • New Schemes

31.5 20.5 12.6 FY12 £m FY11 FY10 Total 43.0 43.8 42.1 Old Schemes 11.5 23.3 29.5

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Intermediate Capital Group plc 34

Long term P&L impact of incentive schemes

(excluding balance sheet carry)

 Based on FY10 and FY11 and FY12 actual awards, and constant FY12 awards for future years  Roll-out driven growth until FY15 included, but immaterial in FY14 & FY15

5 10 15 20 25 30 FY10 FY11 FY12 FY13 FY14 FY 15 FY15 awards FY14 awards FY13 awards FY12 awards FY11 awards FY10 awards

£m

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Intermediate Capital Group plc 35

Balance Sheet

31 March 2011 £m 785 827 Headroom at year end Loans & Investments 2,352 2,575 Net current assets/(liabilities) 78 (76) 2,430 2,499 Shareholders’ Funds 1,451 1,250 Borrowings 979 1,249 2,430 2,499 ROE* 11.5% 10.8% Gearing Ratio 66% 100% Debt Facilities 1,806 2,033 Current Headroom 505 31 March 2012 £m

* Excluding the £45m one off

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Intermediate Capital Group plc 36

Debt maturity profile

100 200 300 400 500 600 700 800 900 H1 '13 H2 '13 H1 '14 H2 '14 FY15 FY16 FY17 FY18 FY19

  • FY25

£m

Private placements Retail bond Bank facilities Securitisation

Agreed subject to documentation

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Intermediate Capital Group plc 37

Cash Flow Analysis

Strong cash generation

481.9 Free Cash flow 41.7 138.2 Repayments & recoveries Cash flow relating to Capital Gains Tax & others Operating cash flow FY12 £m 372.7 642.9 217.3 79.3 90.6 368.6 121.9 157.5 FY 11 FY 10 (66.6) (5.1) 68.9 123.3 Net debt reduction Dividend New investments 236.7 37.8 98.2 40.6 315.9 (14.5) 269.5 274.4 368.6 113.5 106.7 Cash Core Income 115.1 Net share proceeds 16.9 15.3

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Intermediate Capital Group plc 38

Financial outlook

 FMC

 Higher fee income driven by ICG Europe Fund V and new funds  Increase in costs as we continue to strengthen distribution team

 IC

 Reduction in NII as price of debt increases  Good momentum in new investments but environment remains unpredictable  Further capital gains and realisation of PIK  Provisions expected to remain at around historical average level

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Intermediate Capital Group plc 39

Highlights

 Operational highlights

 Progress on fund management platform: products and distribution in place  AUM of €11.4bn  Down 3% due to CLO runoff, credit fund raising impacted by sovereign crisis  Mezzanine AUM up 7% (Fund V, Longbow)  Portfolio companies showing resilience  8 exits at 1.9x and 22% IRR

 Financial highlights

 FMC Profit before tax: £37.7m vs £35.9m in FY11  Adjusted IC Profit before tax*: £161.1m vs £154.2m in FY11  Adjusted Group Profit before tax*: £198.8*m vs £190.4m in FY11  Further debt extensions  Full year dividend of 19 pence vs 18 pence last year

* Excluding £45.0m positive impact of one-off release of previously accrued costs as we terminated our MTIS remuneration scheme; and fair value movement on derivatives (FY12: nil; FY11: loss of £3.8m)

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Intermediate Capital Group plc

Appendix

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Intermediate Capital Group plc

Market Update

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Intermediate Capital Group plc 42

Refinancing opportunities lie ahead

Source: JPMorgan Structured Finance Research, INTEX, S&P European Leveraged Loan Index (ELLI), February 2012

European CLOs funded amount by reinvestment period expiry vs. European maturing leveraged loans

10 20 30 40 50 60 2012 2013 2014 2015 2016 2017 2018 €bn European CLOs Total Funded Amount by Reinvestment Period Expiry Maturing Leveraged Loans

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Intermediate Capital Group plc 43 43

LBO Market

Slowdown in High Yield issuance

Source: S&P

5 10 15 20 25 30 35 40 45 50 US$bn

Europe High Yield Issuance

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Intermediate Capital Group plc 44

European LBO Volume

Slowdown so far has prevailed into 2012

Source: S&P

20 40 60 80 100 120 140 160 180 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 €bn

Primary LBOs

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Intermediate Capital Group plc 45 Intermediate Capital Group plc 45 45

Price of loans attractive again

*S&P European Leveraged Loan Index (ELLI) was calculated monthly during 2003 and weekly beginning 2004. Source: S&P, European Secondary Pricing Source: Markit Loans

54 58 62 66 70 74 78 82 86 90 94 98 102

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Intermediate Capital Group plc 46

LBO Market

European Significant Private Equity dry powder remains

Source: Preqin 20 40 60 80 100 120 140 160 180 200 2005 2006 2007 2008 2009 2010 2011 2012 Q1 €bn

Dry powder Number of funds raised

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Intermediate Capital Group plc 47

LBO Market

European leveraged loans and HY bonds maturity profile

Source: S&P European Leveraged Loan Index (ELLI); Bank of America Merrill Lynch European High-Yield Bond Index, 5 April 2012; JP Morgan, March 2012

€0 €10 €20 €30 €40 €50 €60 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 or later €bn Year

High Yield Bonds Leverage Loan

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Intermediate Capital Group plc 48 48

LBO Market

European banks need to degear

Source: ECB, December 2011

Total European Bank Assets / GDP

0% 50% 100% 150% 200% 250% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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Intermediate Capital Group plc 49

Real Estate Market

European Debt Funding Gap 2012-13

Source: DTZ, May 2012

10 20 € bn

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Intermediate Capital Group plc

Portfolio

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200 400 600 800 1000 1200 1400 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 New Lending Repayments

£m

Intermediate Capital Group plc 51

New Lending vs Repayments*

*6 months moving average

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Intermediate Capital Group plc 52

Top ten equity assets

Livestock identification system UK

↑

Fixed satellite services US

↑

PVC Flooring France

↑

Share registry and fund administration services Australia

↑

Software solutions Italy

↑

Utilities Netherlands

↓

Business services Belgium

↑

Inspection, certification and technological services Spain

↑

Food & Consumer Product France

↑

Retail UK

↑

Business Country

Vs Last Year

 Includes all equity classes: AFS, FVTPL and loan stock

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Intermediate Capital Group plc 53

Top ten PIK assets

Business Country

Vs Last Year

Healthcare France

↓

Transport UK

↑

Financial services Australia

↑

Financial services Australia

↑

Entertainment & Leisure Australia

↑

Business Services Italy

↑

Cinema owner and operator Australia

↓

Catering UK

↑

Pharmaceuticals & Chemicals France

↑

Healthcare Sweden

↑

Entertainment & Leisure UK

↓

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Intermediate Capital Group plc

Funds

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Intermediate Capital Group plc 55

Mezzanine and Growth Capital Funds

Fee structure

Funds in investment period

20 % of 20

  • ver 8

1.25% on invested 93% Nov-2011 €1.25bn €1.75bn EF06 25 % of 20

  • ver 8

2.0% on invested 91% Apr-2008 $0.3bn $0.3bn ICAP 05 100% 96% % Invested 1.5% on invested 1.5% on invested Main fee 28% of 20

  • ver 8

20 % of 20

  • ver 8

Carry Sep-2006 €0.67bn €1.42bn EF03 Feb-2010 €0.13bn €0.13bn IMP08 End of investment period Equity Size Fund

Funds in realisation

78% 45% % Invested 1.5% on invested 1.5% on committed equity Main fee Oct-2011 €0.64bn €0.84bn RF08 April-2013 $0.6bn $0.6bn ICAP 08 End of investment period Equity Size Fund EF V €1.1bn TBC Sep-2016 12% 1.5% on committed

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Intermediate Capital Group plc 56 Intermediate Capital Group plc 56 Intermediate Capital Group plc 56

ICG Mezzanine Fund 2003

Highlights

Summary

Gross IRR Money Multiple Average Life Net IRR Net MM Assets Cost Invested Money Multiples/IRR Distribution Investments Invested Capital Capital Invested

Portfolio Exits Performance

Levered 60 €1.2bn 1.5x / 17% €833m 80 €1.67bn €1.34bn 100% 14% 1.4x 50 months 14% 1.6x

Source: ICG, as at 31 March 2012

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Intermediate Capital Group plc 57 Intermediate Capital Group plc 57 Intermediate Capital Group plc 57

ICG European Fund 2006

Highlights

Summary

11% 1.4x 44 months 9% 1.3x Gross IRR Gross Money Multiple Average Life Net IRR Net MM 8 €357m 1.9x / 26% €275m 47 €1.6bn €1.75bn 93% Assets Cost Invested Money Multiples/ IRR LP Distribution Investments Invested Capital Capital Invested

Portfolio Exits Performance

Source: ICG, as at 31 March 2012

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Intermediate Capital Group plc 58 Intermediate Capital Group plc 58 Intermediate Capital Group plc 58

ICG Recovery Fund 2008

Highlights

Summary

Gross IRR Money Multiples Average Life Net IRR Net MM Assets Value Invested Money Multiples/IRR Distribution Investments Invested Capital Capital Invested

Portfolio Exits Performance

18% 1.3x 16 months 11% 1.2x 1 €4.3m 2.9x/52% €38m 9 €901m €1.16bn 78%

Source: ICG, as at 31 March 2012

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Intermediate Capital Group plc 59 Intermediate Capital Group plc 59

ICG Minority Partners Fund 2008

Highlights

Summary

Gross IRR Money Multiples Average Life Net IRR Net MM Assets Value Invested Money Multiples/IRR Distribution Investments Invested Capital Capital Invested

Portfolio Exits Performance

37% 2.0x 33 months 27% 1.8x 3 €101m 2.2x / 48% €205m 4 €121m €115m 96%

Source: ICG, as at 31 March 2012

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Intermediate Capital Group plc 60 Intermediate Capital Group plc 60

Intermediate Capital Asia Pacific Mezzanine Fund 2005 Highlights

Summary

Gross IRR Money Multiples Average Life Net IRR Net MM Assets Value Invested Money Multiples/IRR Distribution Investments Invested Capital Capital Invested

Portfolio Exits Performance

14% 1.5x 48 months 13% 1.5x 4 $129.4m 1.3x / 16% $168.8m 8 $277.4m $300m 91%

Source: ICG, as at 31 March 2012

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Intermediate Capital Group plc 61 Intermediate Capital Group plc 61

Intermediate Capital Asia Pacific Fund 2008

Highlights

Summary

Gross IRR Money Multiples Average Life Net IRR Net MM Assets Value Invested Money Multiples/IRR Distribution Investments Invested Capital Capital Invested

Portfolio Exits Performance

7% 1.1x 20 months 8% 1.2x 1 $21.7m 1.4x / 16% $94.2m 7 $286m $600m 45%

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Intermediate Capital Group plc

New Funds

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Intermediate Capital Group plc 63

Product Overview

Senior Debt Partners & European Loan Fund

Senior Debt Partners

 Exploiting market opportunity for direct lending in Europe  Targeting buy-and-hold senior  ICG arranged  Targeting annual return of 10% and investment period of 36 months

European Loan Fund

 Dublin-listed unit trust  Invests primarily in Euro denominated senior leveraged loans  Quarterly liquidity  Different currency share classes available

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SLIDE 64

Product Overview

Total Credit & High Yield Bond Fund

High Yield Bond Fund

 UCITS fund offering daily liquidity  Investing in European High Yield Bonds  Track record since December 2009  Administered via UBS Liquid Alpha Platform  ICG is the only high yield manager to have top quartile performance in both 2010 and 2011, based on the Lipper European HY rankings

Intermediate Capital Group plc 64

Total Credit

 Investment solution to allow smaller investors to access a portfolio of combined loans, bonds & structured credit  Interest from various investors, including local authorities and pension funds  Targeting returns of 10%  Anticipating first close in Summer 2012 and continued fundraising

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Product Overview

ICG Europe Fund V & Senior Debt Partners

Segregated Mandates

 Manage a number of segregated mandates since 2006. Currently AUM for segregated mandates of €600 million  Flexibility across asset classes (individual or combined)  Deployed ICG Investor Extranet to allow enhanced reporting for investors  Closed a large segregated mandate to invest in loans on behalf of a European bank

Intermediate Capital Group plc 65

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SLIDE 66

Intermediate Capital Group plc

Financial information

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Intermediate Capital Group plc 67

Fee income

Mezzanine Fund Management fee income 43.5 32.4 Credit Fund Management fee income 23.2 23.7 Third Party Funds fee income 66.7 56.1 Investment Company fee income 24.5 25.7 Total fee income 91.2 81.8

FY12 FY 11 £m

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Intermediate Capital Group plc 68

Mezzanine and Growth Capital Funds

Third party fee income

FY12 FY11

Mgmt Fee Carried Interest Mgmt Fee Carried Interest Investing Europe 24.7 0.0 4.5 0.0 Investing Asia 5.3 0.0 5.4 0.0 Realisation Europe 5.0 7.0 19.4 1.3 Realisation Asia 1.5 0.0 1.8 0.0 Total 36.5 7.0 31.1 1.3 Mezzanine and minority equity fee income in £m

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Intermediate Capital Group plc 69

Credit funds

Fee income

Management & senior fees 7.5 6.7 Junior fees relating to the year 12.3 12.8 Junior fees relating to prior periods 1.9 3.8 Other performance fees 1.5 0.4 Total 23.2 23.7 CFM Fee Income in £m FY11 FY12

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SLIDE 70

Intermediate Capital Group plc 70

Incentive schemes excluding MTIS on capital gains

FM Co Inv Co New Schemes 31.5 13.4 18.1 FY 12

Segmental Group

Old Schemes* 11.5

  • 11.5

£m

* MTIS on rolled interest and shares options

Total 43.0 13.4 29.6

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 Future P&L impact of FY10, FY11 and FY12 awards – Excluding Balance Sheet Carry  BSC: Charge given percentage to interest income

 FY13: 4%; FY15: 5%

Remuneration Schemes – future year impacts

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FY13 FY14 FY15 FY16 FY17 £m 13.7 7.5 3.6 1.1 0.7

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SLIDE 72

Remuneration Schemes

Assets in BSC Scheme

Intermediate Capital Group plc 72

EOS I - Hold Fort Dearborn Team System Quorn Baxter Gerflor Counterpaille. AAS Link

Portfolio companies Year of investment

EOS FY11 Fort Dearborn FY11 Team System FY11 Quorn FY11 Westbury Street Holdings (ex Baxter Storey) FY11 Gerflor FY11 Courtepaille FY11 Tegel FY12 BvD FY12 Ventura Motors FY12 HMG FY12 Citic FY12

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Mezzanine and equity investment Gross impairment 83.5 89.8 180.4 Recoveries (12.9) (18.9) (18.5) Net impairment 70.6 70.9 161.9

Intermediate Capital Group plc 73

Impairments

FY 12 FY 11 £m FY 10

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SLIDE 74

Intermediate Capital Group plc 74

Pre-tax Profits, Earnings Per Share & Dividends

Adjusted pre tax profit* £198.8.m £190.1m Pre tax profit £243.8m £186.3m Net profit £187.6m £128.1m EPS 47.7p 32.6p Adjusted EPS* 39.2p 33.2p DPS 19.0p 18.0p FY12 FY11

* Adjusted for £45m one off release of previously accrued costs relating to MTIS and fair value movement on derivatives

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Intermediate Capital Group plc 75

Cash core income

* Adjusted for £45m one off release of previously accrued costs ** Net of MTIS

Cash Core Income Calculation: Pre tax profit* £198.8m Less Capital Gains** £(103.3)m Plus provisions £70.6m Less Accrued PIK** £(146.5)m Plus PIK realised** £93.9m Cash Core Income £113.5m

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SLIDE 76

Disclaimer

Important Notice The materials being provided to you are intended only for informational purposes and convenient reference and may not be relied upon for any purpose. This information is not intended to provide, and should not be relied upon, for accounting, legal, tax advice or investment recommendations. You should consult your tax, legal, accounting or other advisors about the issues discussed herein. Although information has been obtained from and is based upon sources that Intermediate Capital Group plc ("ICG plc") considers reliable, we do not guarantee its accuracy and it may be incomplete

  • r condensed. All opinions, projections and estimates constitute the judgement of the authors as of the date of the document and are subject to

change without notice. ICG plc excludes all liability and therefore accepts no responsibility for any loss (whether direct or indirect) arising for any action taken or not taken by anyone using the information contained therein. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any security or investment interest and may not be relied upon in evaluating the merits of investing in these securities or investment interests. These materials are not intended for distribution to,

  • r use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

Neither ICG plc or any of its affiliates makes any representation or warranty, express or implied as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation whether as to past or future performance. These materials (including their contents) are confidential, being for use only by the persons to whom they are issued. Distribution of these materials to any person other than the person to whom this information was originally delivered and to such person’s advisors is unauthorised and any reproduction of these materials, in whole or in part, or the disclosure of any of their contents, without the prior consent of ICG plc or its affiliates is prohibited. This communication is limited to and directed to those persons invited to the presentation. It is therefore only directed at professional clients, as defined by the Financial Services Authority. Any other persons should not seek to rely upon the information contained herein. Collective investment schemes referred to herein are not regulated for the purposes of the UK’s Financial Services and Markets Act 2000 and are not available to members

  • f the general public.

ICG plc is authorised and regulated in the United Kingdom by the Financial Services Authority. Intermediate Capital Managers Limited is a wholly-

  • wned subsidiary of ICG plc and is also authorised and regulated in the United Kingdom by the Financial Services Authority.