Intermediate Capital Group PLC Half Year Results 30 September 2011 - - PowerPoint PPT Presentation

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Intermediate Capital Group PLC Half Year Results 30 September 2011 - - PowerPoint PPT Presentation

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Intermediate Capital Group PLC Half Year Results 30 September 2011 Intermediate Capital Group plc and Intermediate Capital Managers Limited are authorised and regulated in the United Kingdom by the Financial Services Authority Highlights

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

Intermediate Capital Group PLC

Half Year Results 30 September 2011

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Intermediate Capital Group plc 2

Highlights

  • Operational highlights
  • €1.1bn first closing of ICG Europe Fund V, including ICG’s €500m co-investment
  • £242m final close on Longbow UK mezzanine fund, including ICG’s £50m

commitment

  • AUM of €12.0bn vs €11.8bn at 31/03/11
  • Portfolio companies showing resilience, low provisions in H1 12
  • Financial highlights
  • FMC Profit before tax: £17.1m vs £16.9m in H1 11
  • IC Profit before tax*: £91.7m vs £88.2m in H1 11
  • Group Profit before tax*: £108.8m vs £105.1m in H1 11
  • Fair valuing equity investments leads to £101m uplift to reserves
  • Interim dividend of 6 pence unchanged from last year

* Including £8.1m, positive impact of fair value movements on derivatives held for hedging purposes (H1 11: £8.5m)

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Intermediate Capital Group plc

Portfolio Update

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Intermediate Capital Group plc 4

Investment portfolio

Performance vs. prior year

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

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Intermediate Capital Group plc 5

Top twenty assets

Private clinic manager France

→

Textile rental and cleaning France

↑

Inspection, certification and technological services Spain

↑

Waste management solutions provider UK

↑

Patent & legal services UK

↑

Airport operator UK

↑

Elderly care homes Sweden

↑

Speciality chemicals for the construction industry France

↑

Share registry and fund administration services Australia

↑

Telephone networks US

→

Supplier of fire protection systems and services Germany

→

Home delivery of frozen foods Germany

↑

PVC Flooring France

↑

Cattle tagging UK

↑

Drug development and manufacturer France

↑

Diversified fund of senior loans Europe

n/a

Provider of services and technical solutions for utilities Germany

↑

Auto Equipment France

↓

Tour operator Spain

↑

Leisure & entertainment Germany

↑

Business Country Vs Last Year

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Intermediate Capital Group plc 6

Trend in Provisions for Portfolio Companies

Loan Stocks

50 100 150 200 250 H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 £m Gross Provisions Write-backs

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Intermediate Capital Group plc 7

Exits

  • Slow down in exits due to market volatility and less liquidity to support new

transactions

  • Nine exits including BvD, Tegel, Au Bon Pain, Veda and Vships
  • £188.5m of repayments
  • £58.6m of realised PIK
  • £10.1m of realised capital gains and £12.1m of unrealised gains on exits
  • We expect realisation to slow down but we have a number of processes on

track

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Intermediate Capital Group plc 8

New Investments

  • £136m of new investments
  • Reinvestment in Tegel and BvD
  • New investment in HMG and CNIG
  • Cautious approach to investments given economic uncertainty
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Intermediate Capital Group plc 9

New Lending vs Repayments*

*6 months moving average

200 400 600 800 1,000 1,200 1,400

Mar- 02 Sep- 02 Mar- 03 Sep- 03 Mar- 04 Sep- 04 Mar- 05 Sep- 05 Mar- 06 Sep- 06 Mar- 07 Sep- 07 Mar- 08 Sep- 08 Mar- 09 Sep- 09 Mar- 10 Sep- 10 Mar- 11 Sep- 11

New Lending Repayments

£m

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Intermediate Capital Group plc

Market Update

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Intermediate Capital Group plc 11 11

LBO Market

Significant decrease in High Yield issuance in Q3

Source: S&P

European High Yield Issuance 5 10 15 20 25 30 35 40 45 50 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 H1 2011 Q3 €bn

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Intermediate Capital Group plc 12 12

LBO Market Slowdown in leveraged loans issuance expected in Q4

Source: S&P

20 40 60 80 100 120 140 160 180 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1 2 1 1 H 1 2 1 1 Q 3 €bn

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Intermediate Capital Group plc 13 13

Price of loans attractive again

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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Market Flow names

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Intermediate Capital Group plc 14 14

LBO Market

LBO Volumes

Source: S&P

50 100 150 200 250 300 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1 2 1 1 H 1 2 1 1 Q 3 €bn

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Intermediate Capital Group plc 15 15

LBO Market

European Significant Private Equity dry powder remains

20 40 60 80 100 120 140 160 180 200 2005 2006 2007 2008 2009 2010 Nov-11 €bn Dry powder Funds raised

Source: Preqin

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Intermediate Capital Group plc 16

LBO Market

European leveraged loans and HY bonds maturity profile

10 20 30 40 50 60 2011 2012 2013 2014 2015 2016 2017 2018 €bn

European CLOs Total Funded Amount by End of Reinvestment Period Leveraged Loan High Yield Bonds

Source: JPMorgan Structured Finance Research, INTEX, S&P European Leveraged Loan Index (ELLI), Barclays Capital for HY bonds, as of July 2011

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Intermediate Capital Group plc 17 17

LBO Market European banks need to degear

Source: S&P

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 18

LBO Market

Institutional Loan and HY markets, Europe vs US

US Institutional Loan and HY markets US Institutional Loan and HY markets US Institutional Loan and HY markets US Institutional Loan and HY markets

200 400 600 800 1,000 1,200 1,400 1,600 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

$bn $bn $bn $bn Bonds Loans Europe Institutional Loan and HY markets Europe Institutional Loan and HY markets Europe Institutional Loan and HY markets Europe Institutional Loan and HY markets 200 400 600 800 1,000 1,200 1,400 1,600 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 $bn $bn $bn $bn Bonds Loans Source: S&P LCD, Deutsche Bank

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Intermediate Capital Group plc 19

Commercial Real Estate Market

European Commercial Real Estate debt maturity profile

50 100 150 200 2011 2012 2013 2014 2015 2016 2017 €bn

Source: CBRE

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Intermediate Capital Group plc 20

Commercial Real Estate Market

European CMBS issuance

10 20 30 40 50 60 70 80 90 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD €bn

Source: CBRE

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Intermediate Capital Group plc 21

Fund Management

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Intermediate Capital Group plc 22

Fund management priorities unchanged since year end

  • Sales team
  • Grow core business
  • Mezzanine (ICG Europe V

, then US and Asia III)

  • Credit Funds (High Yield and European senior debt)
  • Develop new opportunities
  • Real Estate mezzanine and debt
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Intermediate Capital Group plc 23

Fund V

  • €1.1bn first closing of ICG Europe Fund V, including ICG’s €500m co-

investment, in September

  • Significant achievement in difficult fundraising market
  • 15 investors
  • existing and new
  • diversity, by investor type and geography, shows broad appeal
  • Good progress towards €2bn target
  • First investment in BvD in September
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Intermediate Capital Group plc 24

Longbow

  • £242m final close on Longbow UK mezzanine fund, including ICG’s £50m

commitment, ahead of £200m target

  • ICG platform instrumental in fundraising success
  • Fund is 25% invested and seeing increased dealflow
  • Markets dynamics favourable
  • Strong growth potential
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Intermediate Capital Group plc 25

  • 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY08 FY09 FY10 FY11 H1 12 €m Mezzanine funds Credit funds

Third party funds under management

Note: ICG financial year ends 31st March.

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Intermediate Capital Group plc 26

Financial Review

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Intermediate Capital Group plc 27

Financial Highlights

  • Pre-tax profit* of £108.8m vs £105.1m in H1 11
  • FMC Profit before tax: £17.1m vs £16.9m in H1 11
  • IC Profit before tax*: £91.7m vs £88.2m in H1 11
  • Third Party AUM of €9,165m vs €9,036m at 31/03/11
  • Investment portfolio £2,414m vs £2,424m at 31/03/11
  • £117m of debt extension and additional £75m debt facility from new

lender; Balance sheet headroom of c. £615m**

  • Cash Core Income of £63.3m vs £43.8m in H1 11; Interim dividend of 6p

unchanged from last year

*Including £8.1m positive impact of fair value movements on derivatives held for hedging purposes; H1 11: 8.5m ** Adjusted for signed exits where proceeds have not been received in cash and a £75m new debt line

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Intermediate Capital Group plc 28

Impact of Fair Value Accounting

WARRANTS INCREASE £26m CAPITAL GAINS ORDS LOAN STOCK AMORTISED COST VALUE OF ORDS INFLUENCING IMPACT OF POSSIBLE IMPAIRMENT EVENT IMPAIRED £28m CHARGED THROUGH IMPAIRMENTS MEZZ/PIK AMORTISED COST NIL PRE APR ‘10 AFS INCREASE OF £101m RESERVES RECYCLED THROUGH P&L UPON REALISATION POST APR ‘10 FVTPL INCREASE £1m CAPITAL GAINS FVTPL

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Intermediate Capital Group plc 29

Segmental reporting

79.7 79.7 79.7 79.7 74.5 74.5 74.5 74.5 83.6 83.6 83.6 83.6 IC Profit* IC Profit* IC Profit* IC Profit* 105.1 105.1 105.1 105.1 8.5 69.4 (53.1) (33.0) 1.4 95.0 16.9 16.9 16.9 16.9 (23.3) 1.1 39.1 81.2 81.2 81.2 81.2 108.8 108.8 108.8 108.8 Profit before tax Profit before tax Profit before tax Profit before tax (12.3) 31.9 (17.8) (34.0) 9.6 84.8 19.0 19.0 19.0 19.0 (26.7) 3.0 42.7 8.1 37.6 (28.4) (26.2) 2.1 98.5 17.1 17.1 17.1 17.1 (28.0) 2.2 42.9 FVM derivatives Admin expenses Impairments Net capital gains Div & other income Net Interest Income Admin expenses Other income FM Profit FM Profit FM Profit FM Profit Fee income Fund Fund Fund Fund Management Management Management Management Company Company Company Company Investment Investment Investment Investment Company Company Company Company Group Group Group Group H1 12 H1 12 H1 12 H1 12 H2 11 H2 11 H2 11 H2 11 H1 11 H1 11 H1 11 H1 11 £m £m £m £m

* Excluding FMV Derivatives

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Intermediate Capital Group plc 30

9,165 9,165 9,165 9,165 9,036 9,036 9,036 9,036 276 276 276 276 35 35 35 35 225 225 225 225 4 4 4 4 591 591 591 591

7,000 8,000 9,000 10,000 Mar-11 New Mezzanine Realisations Mezzanine New CFM Realisations CFM FX Sep-11 €m

Third party AUM

  • Third party AUM up due to New Mezzanine funds
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Intermediate Capital Group plc 31

Third Party Fee Income

10 20 30 40 50 60 FY 08 FY 09 FY 10 FY 11 H1 10 H1 11 H2 11 H1 12 £m Mezzanine Funds CFM Funds

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Intermediate Capital Group plc 32

16.9 16.9 16.9 16.9 3.0 3.0 3.0 3.0 1.7 1.7 1.7 1.7 3.8 3.8 3.8 3.8 1.1 1.1 1.1 1.1 17.1 17.1 17.1 17.1 5 10 15 20 25 H1 11 Fee income Other income Incentive Schemes Operating Costs H1 12 £m

Fund Management Company

  • Profit before tax of £17.1m due to higher fee income
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Intermediate Capital Group plc 33

  • Profit before tax and fair value adjustments at £91.7m

Investment Company

88.2 88.2 88.2 88.2 91.7 91.7 91.7 91.7 0.4 0.4 0.4 0.4 24.7 24.7 24.7 24.7 5.2 5.2 5.2 5.2 3.5 3.5 3.5 3.5 31.8 31.8 31.8 31.8 0.7 0.7 0.7 0.7 1.6 1.6 1.6 1.6

20 40 60 80 100 120

H1 11 NII Div & other income Incentive schemes Operating Expenses Impairment Net Capital Gains FV derivatives H1 12 £m

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Intermediate Capital Group plc 34

Long terms provisions

  • 1%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% FY 95 FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 H1 12

  • Net provisions (as a % of opening book) at very low levels excluding

provision relating to loan stock

Average pre-crisis: 2.4%

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Intermediate Capital Group plc 35

Operating costs

(Excluding incentive schemes)

5 10 15 20 25 30 35 40 45 50 FY 08 FY 09 FY 10 FY 11 H2 10 H1 11 H2 11 H1 12 £m Salaries Administrative costs One off charge re 20 Old Broad St lease

  • Operating costs broadly flat
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Intermediate Capital Group plc 36

Incentive Schemes Excluding MTIS on gains (1)

H2 11 H2 11 H2 11 H2 11 H1 11 H1 11 H1 11 H1 11 FY10 Awards 2.1 5.8 3.8 FY11 Awards 4.0 5.4 5.5 FY 12 Accruals 7.2 Total 13.3 11.2 9.3 H1 12 H1 12 H1 12 H1 12

FY 11 FY 11 FY 11 FY 11 FY 12 FY 12 FY 12 FY 12

Old Schemes 6.3 10.6 12.7 H1 12 H1 12 H1 12 H1 12 H2 11 H2 11 H2 11 H2 11 H1 11 H1 11 H1 11 H1 11 £m £m £m £m Total 19.6 21.8 22.0

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Intermediate Capital Group plc 37

Incentive Schemes Excluding MTIS on gains (2)

FM Co FM Co FM Co FM Co Inv Co Inv Co Inv Co Inv Co FY10 Awards 2.1 1.6 0.5 FY11 Awards 4.0 3.5 0.5 FY 12 Accruals 7.2 4.0 3.2 Total

  • 13. 3

9.1 4.2 H1 12 H1 12 H1 12 H1 12

Segmental Segmental Segmental Segmental Group Group Group Group

Old Schemes* 6.3 6.3 H1 12 H1 12 H1 12 H1 12 FM Co FM Co FM Co FM Co Inv Co Inv Co Inv Co Inv Co £m £m £m £m

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Intermediate Capital Group plc 38

31 March 2011 31 March 2011 31 March 2011 31 March 2011 £m £m £m £m

Balance Sheet

Loans & Investments 2,545 2,575 Net current assets (liabilities) 122 (76) 2,667 2,667 2,667 2,667 2,499 2,499 2,499 2,499 Shareholders’ Funds 1,366 1,251 Borrowings 1,301 1,248 2,667 2,667 2,667 2,667 2,499 2,499 2,499 2,499 Annualised ROE 13.0% 10.8% Gearing Ratio 95% 100% Debt Facilities 1,767 2,033 Headroom 615 785 30 Sept 2011 30 Sept 2011 30 Sept 2011 30 Sept 2011 £m £m £m £m

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Debt maturity profile

Intermediate Capital Group plc 39

Securitisation Private Placements Bank Facilities

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Intermediate Capital Group plc 40

Cash Flow Analysis

139.8 139.8 139.8 139.8 Free Cash flow Free Cash flow Free Cash flow Free Cash flow (25.2) 45.4 Repayments & recoveries Cash flow relating to Capital Gains Tax & others Operating cash flow H1 12 H1 12 H1 12 H1 12 £m £m £m £m 372.7 372.7 372.7 372.7 642.9 642.9 642.9 642.9 217.3 79.3 90.6 368.6 146.6 132.8 FY 11 FY 11 FY 11 FY 11 FY 10 FY 10 FY 10 FY 10 (41.4) (5.1) 46.4 83.2 Net debt reduction Dividend New investments 236.7 37.8 98.2 40.6 315.9 (14.5) 286.4 10.2 161.0 63.3 63.3 63.3 63.3 372.7 372.7 372.7 372.7 106.7 106.7 106.7 106.7 Cash Core Income Cash Core Income Cash Core Income Cash Core Income 115.1 115.1 115.1 115.1

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Intermediate Capital Group plc 41

Financial outlook

  • Fund Management
  • New funds will drive fee income
  • IC
  • Reduced visibility in current environment
  • Realisation expected to slowdown but some processes ongoing
  • Resilient NII
  • Additional new investments but remain unpredictable
  • Provisions could potentially increase from H1 12, but we have in excess of

£500m of provisions on balance sheet

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Intermediate Capital Group plc

Conclusion

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Intermediate Capital Group plc 43

Appendix

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Intermediate Capital Group plc 44

Top ten equity assets

Patent & legal services UK

↑

Fixed satellite services USA

↑

Livestock identification systems France

↑

Home delivery of frozen foods Germany

↑

PVC Flooring France

↑

Share registry and fund administration services Australia

↑

Software solutions Italy

↑

Utilities Netherlands

↑

Inspection, certification and technological services Spain

↑

Business services Belgium

↑

Business Country Vs Last Year

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Intermediate Capital Group plc 45

Top ten PIK assets

Airport operator UK

↑

Private clinic manager France

→

Share registry and fund administration services Australia

↑

Security services Italy

↑

Credit Bureau Australia

→

Cinema owner and operator Australia

↓

Catering Services UK

↑

Drug development and manufacturer France

↑

Elderly care homes Sweden

↑

Restaurants UK

↑

Business Country Vs Last Year

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Intermediate Capital Group plc 46

Valuation of equity

  • Adopted Fair Value methodology for equity investments
  • Only applies to warrants and unlisted shares

AFS assets via Available For Sale reserves

FVTPL (warrants, recent equity) via P&L

  • Loan stocks held at amortised cost; fair value impacts P&L through

impairments

  • Neutral impact on profit before tax

Unrealised Capital gains of £27.4m on FVTPL Provision of £28.0m on loans stocks Tax benefit on provisions, unrealised capital gains untaxed

  • £100.6m uplift to reserves on equity investments (AFS assets)
  • Equity book is now valued at £698m

£398m of unlisted shares and warrants; £65m FVTPL; £333m AFS £300m of loan stocks/shareholder loans

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Intermediate Capital Group plc 47

Accounting treatment going forward (1/2)

AFS & FVTPL

  • AFS
  • Primarily equity assets in transactions pre March 2010
  • Until March 2014

will go through P&L via capital gains line when realised In the meantime, movements in value will go through reserves

  • After March 2014

“frozen in reserves”

  • Impairments via reserves
  • FVTPL
  • Primarily equity assets in transactions from March 2010 onwards and warrants
  • All movement in value through capital gains line
  • Valuation Methodology
  • As part of the Quarterly Portfolio Review
  • Based on multiples of listed comparators as (at end of February, May, August and

November) and relevant profit measure (EBITDA for most)

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Intermediate Capital Group plc 48

Fair Value Accounting Top AFS and FVTPL assets

  • AFS assets
  • FVTPL assets

CPA Patent & legal services UK £60.7m Intelsat Fixed satellite services USA £59.2m Allflex Livestock identification systems UK £47.9m AAS Link Share registry and fund administration services Australia £19.9m Menissez Bread Manufacturing France £15.2m Elior Catering France £13.9m Eismann Home delivery of frozen foods Germany £12.5m Lecta Printing Italy £10.8m

Company Business Country Value at 30/09/2011

Gerflor PVC flooring France £12.4m Baxter Storey Catering UK £9.6m Link/AAS Share registry and fund administration services Australia £9.5 m CPA Patent & legal services UK £7.2m

Company Business Country Value at 30/09/2011

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Intermediate Capital Group plc 49

Accounting treatment going forward (2/2)

Loan Stock

  • Valuation methodology unchanged
  • Valued on amortised cost using the effective interest method
  • However, when current value of corresponding equity is nil, we believe we

should take a closer look at loan stock value, potentially leading to impairments

Van Gansewinkel Utilities Netherlands £21.2m Eismann Home delivery of frozen foods Germany £21.0m TeamSystem Software solutions Italy £19.8m Gerflor PVC Flooring France £19.5m Applus+ Inspection, certification and technological services Spain £18.6m BvD Financial Information Belgium £16.0m TDF Broadcasting infrastructure France £12.6m Attendo Care homes Sweden £10.8m

Company Business Country Value at 30/09/2011

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Intermediate Capital Group plc 50

Disclosure

  • Capital Gains
  • Realised capital gains during the period
  • Unrealised capital gains on exits signed during the period but not yet completed
  • Fair value increase on unrealised equity investments
  • Fair value decrease on unrealised equity investments
  • Impairments
  • Impairments relating to loan stock will be flagged
  • Valuation
  • Top 10 equity investments
  • Large AFS, FVTPL & Loan Stock assets
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Intermediate Capital Group plc 51

LBO Market

European CLOs - amount within reinvestment period

€0 €10 €20 €30 €40 €50 €60 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year Amount (€B)

Source: JPMorgan Structured Finance Research, INTEX,

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Intermediate Capital Group plc 52

Credit Fund Management performance

Leveraged loans

ICG Senior Secured Loan Performance* vs. Credit Suisse Western European Loan Index

* Composite of all discretionary market value funds managed by ICG

ICG Loan Default Rate vs. S&P Speculative Grade* Default Rate

Source: ICG, S&P, 30 September 2011 Source: ICG per 30 September 2011

65% 75% 85% 95% 105% 115% 125% 135% Nov-05 Mar-06 Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Jul-08 Nov-08 Mar-09 Jul-09 Nov-09 Mar-10 Jul-10 Nov-10 Mar-11 Jul-11 ICG Marketvalue Loan Composite CS Western European Loan Index

0.62% 0.00% 0.69% 0.00% 0.51% 0.00% 0.10% 0.00% 0.78% 6.49% 1.03% 0.61% 2.78% 1.52% 1.50% 1.74% 1.47% 5.77% 14.76% 4.00% Not Available 0% 2% 4% 6% 8% 10% 12% 14% 16% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD ICG Loan Default Rate S&P Loan Default Rate (based on Issuers)
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Intermediate Capital Group plc 53

Credit Fund Management performance

High Yield

ICG High Yield Composite* vs. Merrill Lynch High Yield Index (HEAG) ICG High Yield Default Rate vs. S&P High Yield Default Rate

Source: ICG, S&P, 30 September 2011 Source: ICG per 30 September 2011 * Represents high yield assets managed across all relevant funds

0.77% 2.52% 3.22% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.48% 0.10% 0.00% 2.02% 7.34% 12.90% 3.42% 1.23% 0.56% 2.07% 0.95% 2.56% 1.08% 0.88% 7.50%
  • 1%
1% 3% 5% 7% 9% 11% 13% 15% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD ICG High Yield Default Rate S&P High Yield Default Rate

65% 85% 105% 125% 145% 165% 185% 205% 225% Nov-00 Jul-01 Mar-02 Nov-02 Jul-03 Mar-04 Nov-04 Jul-05 Mar-06 Nov-06 Jul-07 Mar-08 Nov-08 Jul-09 Mar-10 Nov-10 Jul-11 ICG European High Yield Composite ML High Yield Index

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Intermediate Capital Group plc 54

Top quartile Private Equity performance

Net Money Multiple Source: ICG/Venture Economics/ThompsonOne as of 30 June 2011 1.3x 1.7x 1.6x 1.2x 1.3x 1.4x 0.70x 0.90x 1.10x 1.30x 1.50x 1.70x 1.90x 1998 2000 2003 2006 2008 2008 Net Money Multiple ICG Top Quartile PE

1998 Fund 1998 Fund 1998 Fund 1998 Fund 2nd Quartile 2000 2000 2000 2000 Fund Fund Fund Fund Top Quartile 2003 2003 2003 2003 Fund Fund Fund Fund Top Quartile 2006 2006 2006 2006 Fund Fund Fund Fund Top Quartile IMP IMP IMP IMP 2008 2008 2008 2008 Fund Fund Fund Fund Top Quartile RF 2008 RF 2008 RF 2008 RF 2008 Fund Fund Fund Fund Top Quartile

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Intermediate Capital Group plc 55

Mezzanine and Growth Capital Funds

Fee structure

Funds in investment period Funds in investment period Funds in investment period Funds in investment period

20 % of 20

  • ver 8

1.25% on invested 92% Mar-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% 84% % Invested % Invested % Invested % Invested 1.5% on invested 1.5% on invested Main fee Main fee Main fee Main fee 28% of 20

  • ver 8

20 % of 20

  • ver 8

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

Funds in realisation Funds in realisation Funds in realisation Funds in realisation

77% 35% % Invested % Invested % Invested % Invested 1.5% on invested 1.5% on committed equity Main fee Main fee Main fee Main fee Oct-2012 €0.64bn €1.16bn RF08 April-2013 $0.6bn $0.6bn ICAP 08 End of investment period End of investment period End of investment period End of investment period Equity Equity Equity Equity Size Size Size Size Fund Fund Fund Fund

  • 1.5% on committed equity

Sept -2016 TBC TBC ICG V

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SLIDE 56

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

ICG Mezzanine Fund 2003

Highlights

Summary Summary Summary Summary

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

Portfolio Portfolio Portfolio Portfolio Exits Exits Exits Exits Performance Performance Performance Performance

Levered Levered Levered Levered 59 €1.38bn 1.5x / 18% €828.1m 80 €1.67bn €1.34bn 100% 14% 1.4x 50 months 15% 1.6x

Source: ICG, as at 30 September 2011

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SLIDE 57

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

ICG European Fund 2006

Highlights

Summary Summary Summary Summary

11% 1.3x 38 months 8% 1.3x Gross IRR Gross Money Multiple Average Life Net IRR Net MM 6 €253m 1.7x / 23% €46m 47 €1.6bn €1.75bn 92% Assets Cost Invested Money Multiples/ IRR LP Distribution Investments Invested Capital Capital Invested

Portfolio Portfolio Portfolio Portfolio Exits Exits Exits Exits Performance Performance Performance Performance

Source: ICG, as at 30 September 2011

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SLIDE 58

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

ICG Recovery Fund 2008

Highlights

Summary Summary Summary Summary

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

Portfolio Portfolio Portfolio Portfolio Exits Exits Exits Exits Performance Performance Performance Performance

17% 1.3x 19 months 11% 1.2x 1 €4.3m 3.6x/66% €0 6 €886m €1.16bn 77%

Source: ICG, as at 30 September 2011

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SLIDE 59

Intermediate Capital Group plc 59 Intermediate Capital Group plc 59

ICG Minority Partners Fund 2008

Highlights

Summary Summary Summary Summary

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

Portfolio Portfolio Portfolio Portfolio Exits Exits Exits Exits Performance Performance Performance Performance

29% 1.6x 26 months 21% 1.5x 1 €40m 2.1x / 55% €72m 4 €121m €132m 84%

Source: ICG, as at 30 September 2011

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SLIDE 60

Intermediate Capital Group plc 60 Intermediate Capital Group plc 60

Intermediate Capital Asia Pacific Mezzanine Fund 2005 Highlights

Summary Summary Summary Summary

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

Portfolio Portfolio Portfolio Portfolio Exits Exits Exits Exits Performance Performance Performance Performance

13% 1.4x 43 months 11% 1.4x 4 $131m 1.3x / 15% $162m 8 $277m $300m 91%

Source: ICG, as at 30 September 2011

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SLIDE 61

Intermediate Capital Group plc 61 Intermediate Capital Group plc 61

Intermediate Capital Asia Pacific Fund 2008

Highlights

Summary Summary Summary Summary

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

Portfolio Portfolio Portfolio Portfolio Exits Exits Exits Exits Performance Performance Performance Performance

3% 1.1x 22 months 5% 1.1x 1 $21.7m 1.4x / 16% $74m 5 $224m $600m 35%

Source: ICG, as at 30 September 2011

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SLIDE 62

Intermediate Capital Group plc 62

Fee Income

Mezzanine Fund Management fee income 17.2 16.2 16.2 Credit Fund Management fee income 13.1 13.8 9.9 Third Party Funds fee income 30.3 30.0 26.1 Investment Company fee income 12.6 12.7 13.0 Total fee income 42.9 42.7 39.1 H1 12 H1 12 H1 12 H1 12 H2 11 H2 11 H2 11 H2 11 H1 11 H1 11 H1 11 H1 11 £m £m £m £m

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SLIDE 63

Intermediate Capital Group plc 63

Mezzanine & Growth Capital Funds

Third Party Fee Income

H1 12 H1 12 H1 12 H1 12 H2 11 H2 11 H2 11 H2 11 H1 11 H1 11 H1 11 H1 11

Mgmt Fee Carried Interest Mgmt Fee Carried Interest Mgmt Fee Carried Interest

Investing Europe 2.0 0.0 9.8 0.0 7.9 0.0 Investing Asia 2.6 0.0 2.6 0.0 2.8 0.0 Realisation Europe 9.7 2.1 2.9 0.0 3.2 1.3 Realisation Asia 0.8 0.0 0.9 0.0 1.0 0.0 Total 15.1 2.1 16.2 0.0 14.9 1.3 £m £m £m £m

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SLIDE 64

Intermediate Capital Group plc 64

Credit Funds

Fee Income

Senior Fees 4.3 3.6 3.2 Junior Fees 7.5 9.8 6.7 Performance Fees 1.3 0.4

  • Total

13.1 13.8 9.9 H1 12 H1 12 H1 12 H1 12 H2 11 H2 11 H2 11 H2 11 H1 11 H1 11 H1 11 H1 11 £m £m £m £m

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SLIDE 65

Intermediate Capital Group plc 65

Gains on Investments

Realised gains 10.1 31.3 28.9 Unrealised gains 32.0 15.3 57.9 Total gains 42.1 46.6 86.8 MTIS (4.5) (13.6) (17.4) Net gains 37.6 33.0 69.4 H1 12 H1 12 H1 12 H1 12 H2 11 H2 11 H2 11 H2 11 H1 11 H1 11 H1 11 H1 11 £m £m £m £m

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SLIDE 66

Intermediate Capital Group plc 66

Impairments

Mezzanine and equity investment Gross impairment 39.6 35.5 54.3 Recoveries (11.2) (17.7) (1.2) Net impairment 28.4 17.8 53.1 H1 12 H1 12 H1 12 H1 12 H2 11 H2 11 H2 11 H2 11 H1 11 H1 11 H1 11 H1 11 £m £m £m £m

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SLIDE 67

Intermediate Capital Group plc 67

Pre-tax Profits, Earnings Per Share & Dividends

Pre tax profit excluding FV £100.7m £93.5m £96.6m Pre tax profit £108.8m £81.2m £105.1m Net profit £85.1m £60.6m £67.5m EPS 21.6p 15.4p 17.2p DPS 6.0p 12.0p 6.0p H2 11 H2 11 H2 11 H2 11 H2 11 H2 11 H2 11 H2 11 H1 11 H1 11 H1 11 H1 11

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SLIDE 68

Intermediate Capital Group plc 68

Cash Core Income

* adjusted for FV movements of derivatives held for hedging ** Net of MTIS

20 40 60 80 100 120 FY 08 FY 09 FY 10 FY 11 H1 11 H2 12 H1 12 £m

Cash Core Income Calculation: Cash Core Income Calculation: Cash Core Income Calculation: Cash Core Income Calculation: Pre tax profit* £100.7m Less Capital Gains** £(37.6)m Plus provisions £28.4m Less Accrued PIK** £(77.0)m Plus PIK realised** £48.8m Cash Core Income £63.3m

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SLIDE 69

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 or 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 of 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.