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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 PLCHalf Year Results
30 September 2011
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)
Intermediate Capital Group plc
Portfolio Update
Intermediate Capital Group plc 4
Investment portfolioPerformance 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
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
Intermediate Capital Group plc 6
Trend in Provisions for Portfolio Companies
Loan Stocks
0
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
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
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
Intermediate Capital Group plc 9
New Lending vs Repayments*
*6 months moving average
0
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
Intermediate Capital Group plc
Market Update
Intermediate Capital Group plc 1111
LBO MarketSignificant decrease in High Yield issuance in Q3
Source: S&P
European High Yield Issuance
0
5
10
15
20
25
30
35
40
45
50
199619
9719
9819
9920
0020
0120
0220
0320
0420
0520
0620
0720
0820
0920
1020
11 H1
2011
Q3
€bn
Intermediate Capital Group plc 1212
LBO MarketSlowdown in leveraged loans issuance expected in Q4
Source: S&P
0
20
40
60
80
100
120
140
160
180
200020
0120
0220
0320
0420
0520
0620
0720
0820
0920
1020
11 H1
2011
Q3
€bn
Intermediate Capital Group plc 1313
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
Dec
-02
Mar-03
Jun-03Se
p-03
Dec
-03
Mar-04
Jun-04Se
p-04
Dec
-04
Mar-05
Jun-05Se
p-05
Dec
-05
Mar-06
Jun-06Se
p-06
Dec
-06
Mar-07
Jun-07Se
p-07
Dec
-07
Mar-08
Jun-08Se
p-08
Dec
-08
Mar-09
Jun-09Se
p-09
Dec
-09
Mar-10
Jun-10Se
p-10
Dec
-10
Mar-11
Jun-11Se
p-11
Market Flow names
Intermediate Capital Group plc 1414
LBO MarketLBO Volumes
Source: S&P
0
50
100
150
200
250
300
200020
0120
0220
0320
0420
0520
0620
0720
0820
0920
1020
11 H1
2011
Q3
€bn
Intermediate Capital Group plc 1515
LBO MarketEuropean Significant Private Equity dry powder remains
0
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
Intermediate Capital Group plc 16
LBO MarketEuropean leveraged loans and HY bonds maturity profile
0
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
Intermediate Capital Group plc 1717
LBO MarketEuropean 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
Intermediate Capital Group plc 18
LBO MarketInstitutional 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
0
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
0
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
Intermediate Capital Group plc 19
Commercial Real Estate MarketEuropean Commercial Real Estate debt maturity profile
0
50
100
150
200
2011 2012 2013 2014 2015 2016 2017
€bn
Source: CBRE
Intermediate Capital Group plc 20
Commercial Real Estate MarketEuropean CMBS issuance
0
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
Intermediate Capital Group plc 21
Fund Management
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
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
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
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.
Intermediate Capital Group plc 26
Financial Review
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
Intermediate Capital Group plc 28
Impact of Fair Value Accounting
WARRANTS
INCREASE £26m CAPITAL
GAINS
ORDS LOAN STOCK
AMORTISEDCOST
VALUE OF ORDSINFLUENCING
IMPACT OF POSSIBLE
IMPAIRMENT EVENT
IMPAIRED £28mCHARGED
THROUGH IMPAIRMENTS
MEZZ/PIK
AMORTISEDCOST
NIL
PRE APR ‘10
AFS
INCREASE OF £101m
RESERVES
RECYCLED THROUGHP&L UPON
REALISATION
POST APR ‘10
FVTPL
INCREASE £1m CAPITAL
GAINS
FVTPL
Intermediate Capital Group plc 29
Segmental reporting
79.779.779.779.774.574.574.574.583.683.683.683.6IC Profit*IC Profit*IC Profit*IC Profit*
105.1105.1105.1105.1
8.5
69.4
(53.1)
(33.0)
1.4
95.0
16.916.916.916.9
(23.3)
1.1
39.1
81.281.281.281.2108.8108.8108.8108.8Profit before taxProfit before taxProfit before taxProfit before tax
(12.3)
31.9
(17.8)
(34.0)
9.6
84.8
19.019.019.019.0
(26.7)
3.0
42.7
8.1
37.6
(28.4)
(26.2)
2.1
98.5
17.117.117.117.1
(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 ProfitFM ProfitFM ProfitFM Profit
Fee incomeFund Fund Fund Fund
ManagementManagementManagementManagementCompanyCompanyCompanyCompany
InvestmentInvestmentInvestmentInvestmentCompanyCompanyCompanyCompany
Group Group Group Group
H1 12H1 12H1 12H1 12 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11£m £m £m £m
* Excluding FMV Derivatives
Intermediate Capital Group plc 30
9,1659,1659,1659,1659,0369,0369,0369,036
276276276276
35353535225225225225
4444
591591591591
7,000
8,000
9,000
10,000
Mar-11 NewMezzanine
RealisationsMezzanine
New CFM RealisationsCFM
FX Sep-11
€m
Third party AUM
� Third party AUM up due to New Mezzanine funds
Intermediate Capital Group plc 31
Third Party Fee Income
0
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
Intermediate Capital Group plc 32
16.916.916.916.9
3.03.03.03.0
1.71.71.71.7
3.83.83.83.8
1.11.11.11.1
17.117.117.117.1
0
5
10
15
20
25
H1 11 Fee income Other income IncentiveSchemes
OperatingCosts
H1 12
£m
Fund Management Company
� Profit before tax of £17.1m due to higher fee income
Intermediate Capital Group plc 33
� Profit before tax and fair value adjustments at £91.7m
Investment Company
88.288.288.288.2
91.791.791.791.7
0.40.40.40.4
24.724.724.724.7
5.25.25.25.2
3.53.53.53.5
31.831.831.831.8
0.70.70.70.7 1.61.61.61.6
0
20
40
60
80
100
120
H1 11 NII Div & otherincome
Incentiveschemes
OperatingExpenses
Impairment Net CapitalGains
FVderivatives
H1 12
£m
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%
Intermediate Capital Group plc 35
Operating costs (Excluding incentive schemes)
0
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
Intermediate Capital Group plc 36
Incentive Schemes Excluding MTIS on gains (1)
H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 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 12H1 12H1 12H1 12
FY 11FY 11FY 11FY 11FY 12FY 12FY 12FY 12
Old Schemes 6.3 10.6 12.7
H1 12H1 12H1 12H1 12 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11
£m£m£m£m
Total 19.6 21.8 22.0
Intermediate Capital Group plc 37
Incentive Schemes Excluding MTIS on gains (2)
FM CoFM CoFM CoFM Co Inv CoInv CoInv CoInv 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 12H1 12H1 12H1 12
SegmentalSegmentalSegmentalSegmentalGroupGroupGroupGroup
Old Schemes* 6.3 6.3
H1 12H1 12H1 12H1 12 FM CoFM CoFM CoFM Co Inv CoInv CoInv CoInv Co
£m£m£m£m
Intermediate Capital Group plc 38
31 March 201131 March 201131 March 201131 March 2011
£m£m£m£m
Balance Sheet
Loans & Investments 2,545 2,575
Net current assets (liabilities) 122 (76)
2,6672,6672,6672,667 2,4992,4992,4992,499
Shareholders’ Funds 1,366 1,251
Borrowings 1,301 1,248
2,6672,6672,6672,667 2,4992,4992,4992,499
Annualised ROE 13.0% 10.8%
Gearing Ratio 95% 100%
Debt Facilities 1,767 2,033
Headroom 615 785
30 Sept 201130 Sept 201130 Sept 201130 Sept 2011£m£m£m£m
Debt maturity profile
Intermediate Capital Group plc 39
SecuritisationPrivate Placements Bank Facilities
Intermediate Capital Group plc 40
Cash Flow Analysis
139.8139.8139.8139.8Free Cash flowFree Cash flowFree Cash flowFree 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
372.7372.7372.7372.7642.9642.9642.9642.9
217.3
79.3
90.6
368.6
146.6
132.8
FY 11FY 11FY 11FY 11 FY 10FY 10FY 10FY 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)
286.410.2
161.0
63.363.363.363.3 372.7372.7372.7372.7106.7106.7106.7106.7Cash Core IncomeCash Core IncomeCash Core IncomeCash Core Income 115.1115.1115.1115.1
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
Intermediate Capital Group plc
Conclusion
Intermediate Capital Group plc 43
Appendix
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 CountryVs Last
Year
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
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
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)
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
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
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
Intermediate Capital Group plc 51
LBO MarketEuropean CLOs - amount within reinvestment period
€0
€10
€20
€30
€40
€50
€60
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Year
Am
ount
(€B
)
Source: JPMorgan Structured Finance Research, INTEX,
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 Ratevs.
S&P Speculative Grade* Default Rate
Source: ICG, S&P, 30 September 2011Source: ICG per 30 September 2011
65%
75%
85%
95%
105%
115%
125%
135%
Nov
-05
Mar
-06
Jul-0
6
Nov
-06
Mar
-07
Jul-0
7
Nov
-07
Mar
-08
Jul-0
8
Nov
-08
Mar
-09
Jul-0
9
Nov
-09
Mar
-10
Jul-1
0
Nov
-10
Mar
-11
Jul-1
1
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
Ava
ilabl
e
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)
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 Ratevs.
S&P High Yield Default Rate
Source: ICG, S&P, 30 September 2011Source: 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-0
1
Mar
-02
Nov
-02
Jul-0
3
Mar
-04
Nov
-04
Jul-0
5
Mar
-06
Nov
-06
Jul-0
7
Mar
-08
Nov
-08
Jul-0
9
Mar
-10
Nov
-10
Jul-1
1
ICG European High Yield Composite ML High Yield Index
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
1.7x1.6x
1.2x1.3x
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 Fund1998 Fund1998 Fund1998 Fund2nd
Quartile
2000 2000 2000 2000 FundFundFundFundTop
Quartile
2003 2003 2003 2003 FundFundFundFundTop
Quartile
2006 2006 2006 2006 FundFundFundFundTop
Quartile
IMP IMP IMP IMP 2008 2008 2008 2008 FundFundFundFundTop
Quartile
RF 2008 RF 2008 RF 2008 RF 2008 FundFundFundFundTop
Quartile
Intermediate Capital Group plc 55
Mezzanine and Growth Capital Funds Fee structure
Funds in investment periodFunds in investment periodFunds in investment periodFunds in investment period
20 % of 20
over 8
1.25% on
invested92%Mar-2011€1.25bn€1.75bnEF06
25 % of 20
over 8
2.0% on
invested91%Apr-2008$0.3bn$0.3bnICAP 05
100%
84%
% Invested% Invested% Invested% Invested
1.5% on
invested
1.5% on
invested
Main feeMain feeMain feeMain fee
28% of 20
over 8
20 % of 20
over 8
CarryCarryCarryCarry
Sep-2006€0.67bn€1.42bnEF03
Feb-2010€0.13bn€0.13bnIMP08
End of investment periodEnd of investment periodEnd of investment periodEnd of investment periodEquityEquityEquityEquitySizeSizeSizeSizeFundFundFundFund
Funds in realisationFunds in realisationFunds in realisationFunds in realisation
77%
35%
% Invested% Invested% Invested% Invested
1.5% on invested
1.5% on committed equity
Main feeMain feeMain feeMain fee
Oct-2012€0.64bn€1.16bnRF08
April-2013$0.6bn$0.6bnICAP 08
End of investment periodEnd of investment periodEnd of investment periodEnd of investment periodEquityEquityEquityEquitySizeSizeSizeSizeFundFundFundFund
- 1.5% on committed equity Sept -2016TBCTBCICG V
Intermediate Capital Group plc 56Intermediate Capital Group plc 56Intermediate Capital Group plc 56
ICG Mezzanine Fund 2003 Highlights
SummarySummarySummarySummary
Gross IRRMoney MultipleAverage LifeNet IRRNet MM
Assets
Cost Invested
Money Multiples/IRR
Distribution
InvestmentsInvested Capital
CapitalInvested
PortfolioPortfolioPortfolioPortfolio
ExitsExitsExitsExits
PerformancePerformancePerformancePerformance
Levered Levered Levered Levered
59€1.38bn1.5x / 18%€828.1m
80€1.67bn
€1.34bn100%
14%1.4x 50 months15%1.6x
Source: ICG, as at 30 September 2011
Intermediate Capital Group plc 57Intermediate Capital Group plc 57Intermediate Capital Group plc 57
ICG European Fund 2006 Highlights
SummarySummarySummarySummary
11%1.3x38 months8%
1.3x
Gross IRR
Gross Money Multiple
Average Life
Net IRR
Net MM
6€253m1.7x / 23%€46m
47€1.6bn
€1.75bn92%
Assets
Cost Invested
Money Multiples/ IRR
LP Distribution
Investments
Invested Capital
CapitalInvested
PortfolioPortfolioPortfolioPortfolio
ExitsExitsExitsExits
PerformancePerformancePerformancePerformance
Source: ICG, as at 30 September 2011
Intermediate Capital Group plc 58Intermediate Capital Group plc 58Intermediate Capital Group plc 58
ICG Recovery Fund 2008 Highlights
SummarySummarySummarySummary
Gross IRRMoney MultiplesAverage LifeNet IRRNet MM
AssetsValue InvestedMoney Multiples/IRRDistribution
InvestmentsInvested Capital
CapitalInvested
PortfolioPortfolioPortfolioPortfolio
ExitsExitsExitsExits
PerformancePerformancePerformancePerformance
17%1.3x19 months11%1.2x
1€4.3m3.6x/66%€0
6€886m
€1.16bn77%
Source: ICG, as at 30 September 2011
Intermediate Capital Group plc 59Intermediate Capital Group plc 59
ICG Minority Partners Fund 2008 Highlights
SummarySummarySummarySummary
Gross IRRMoney MultiplesAverage Life
Net IRR
Net MM
AssetsValue InvestedMoney Multiples/IRRDistribution
InvestmentsInvested Capital
CapitalInvested
PortfolioPortfolioPortfolioPortfolio
ExitsExitsExitsExits
PerformancePerformancePerformancePerformance
29%1.6x26 months21%1.5x
1€40m2.1x / 55%€72m
4€121m
€132m84%
Source: ICG, as at 30 September 2011
Intermediate Capital Group plc 60Intermediate Capital Group plc 60
Intermediate Capital Asia Pacific Mezzanine Fund 2005Highlights
SummarySummarySummarySummary
Gross IRRMoney MultiplesAverage Life
Net IRR
Net MM
AssetsValue InvestedMoney Multiples/IRRDistribution
InvestmentsInvested Capital
CapitalInvested
PortfolioPortfolioPortfolioPortfolio
ExitsExitsExitsExits
PerformancePerformancePerformancePerformance
13%1.4x43 months11%1.4x
4$131m1.3x / 15%$162m
8$277m
$300m91%
Source: ICG, as at 30 September 2011
Intermediate Capital Group plc 61Intermediate Capital Group plc 61
Intermediate Capital Asia Pacific Fund 2008Highlights
SummarySummarySummarySummary
Gross IRRMoney MultiplesAverage Life
Net IRR
Net MM
AssetsValue InvestedMoney Multiples/IRRDistribution
InvestmentsInvested Capital
CapitalInvested
PortfolioPortfolioPortfolioPortfolio
ExitsExitsExitsExits
PerformancePerformancePerformancePerformance
3%1.1x22 months5%1.1x
1$21.7m1.4x / 16%$74m
5$224m
$600m35%
Source: ICG, as at 30 September 2011
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 12H1 12H1 12H1 12 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11£m£m£m£m
Intermediate Capital Group plc 63
Mezzanine & Growth Capital FundsThird Party Fee Income
H1 12H1 12H1 12H1 12 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 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
Intermediate Capital Group plc 64
Credit FundsFee 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 12H1 12H1 12H1 12 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11£m£m£m£m
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 12H1 12H1 12H1 12 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11£m£m£m£m
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 12H1 12H1 12H1 12 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11£m£m£m£m
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 11H2 11H2 11H2 11 H2 11H2 11H2 11H2 11 H1 11H1 11H1 11H1 11
Intermediate Capital Group plc 68
Cash Core Income
* adjusted for FV movements of derivatives held for hedging ** Net of MTIS
0
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
Disclaimer
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