ICG plc FY11 Results 1 June 2011 Intermediate Capital Group plc and Intermediate Capital Managers Limited are authorised and regulated in the United Kingdom by the Financial Services Authority
Highlights � Operational Highlights � Third party AUM up 9% to €9bn � Strong performance across the investment portfolio � 13 exits for 1.8x and an 18% IRR � £1bn total of investments, £311m on behalf of ICG balance sheet � Financial Highlights FMC profits of £36m, up 15% adjusted for £6.9m release � � IC profits of £154m*, up 126%, due to lower provisions and higher capital gains � Profit9before tax of £190m*, up 79% � Proposed final dividend of 12p (18p for the full year) * Excluding negative impact of fair value movements of derivatives of £4m Intermediate Capital Group plc 2
Market Update Intermediate Capital Group plc
Record High Yield issuance European High Yield Bond Issuance by Quarter 50,000 45,000 40,000 35,000 30,000 €m 25,000 20,000 15,000 10,000 5,000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: S&P Intermediate Capital Group plc 4
Limited issuance of LBO senior debt €160 €140 €120 €100 ��� €80 €60 €40 €20 €0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 Source: S&P Intermediate Capital Group plc 5
European loan market rally continues S&P Leverage Loan Index 105 100 95 90 85 80 75 70 65 60 3 4 5 6 7 8 9 0 1 3 3 4 4 5 5 6 6 7 7 8 8 9 9 0 0 Mar911 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 n n n n n n n n n y p y p y p y p y p y p y p y p a a a a a a a a a a a a a a a a a e e e e e e e e J M J M J M J M J M J M J M J M J S S S S S S S S B BB Source: S&P Intermediate Capital Group plc 6
No new CLOs raised 90.0 80.0 70.0 60.0 50.0 $bn 40.0 30.0 ���� 20.0 ��� 10.0 9 2003 2004 2005 2006 2007 2008 2009 2010 2011 US Europe Source: BAML Intermediate Capital Group plc 7
US dealing with issues: Europe significantly lagging Changes in Loan Maturity Profile since January 2009 69 80 51 60 40 17 20 7 5.7 90.1 0 €bn 92.2 920 96.5 99.2 913.2 940 933 960 953 980 970 9100 990 2011 2012 2013 2014 2015 2016 2017 Europe US Source: JPMorgan Intermediate Capital Group plc 8
LBO volume at 200192004 levels 180 160 140 120 100 €bn 80 60 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 Source: S&P Intermediate Capital Group plc 9
High prices 9 Lower credit risk Multiple of EBITDA 12.0x 9.7x 9.7x 10.0x 9.2x 8.9x 8.8x 8.3x 8.2x 8.0x 7.7x 7.6x 8.0x 7.3x 7.3x 7.1x 7.0x 6.8x 6.0x 4.0x 2.0x 0.0x 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 Debt/EBITDA Equity/EBITDA Other/EBITDA Source: S&P Intermediate Capital Group plc 10
Significant Private Equity dry powder remains Dry powder Funds raised 200 180 160 140 €bn 120 100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 Q1 2011 Source: Preqin Intermediate Capital Group plc 11
ICG creates unique investment opportunities 14,000 12,000 10,000 8,000 €m 6,000 1,400 1,200 4,000 1,000 800 2,000 €m 600 9 400 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 200 Q1 European Mezzanine market ICG Investments* 9 2010 2011 Q1 Source: ICG/S&P * Investment Company and Mezzanine Funds Intermediate Capital Group plc 12
New Investments Intermediate Capital Group plc
Unique investment opportunities � ICG* has invested c. £1bn in FY2011, with a target return of 1.9x ���������� ������������������� ��������� ��������������� √ PE £110m ��� √ ICG led over £300m √ PE £80m √ ICG led £225m 9 PE £155m 9 ICG led £52m 9 PE £35m * Investment Company and Mezzanine Funds Intermediate Capital Group plc 14
Deal flow New deal opportunities presented to Investment Committee � ��� ! �� 2008 2009 2010 Intermediate Capital Group plc 15
Exits Intermediate Capital Group plc
Strong exits � 13 investments exited, £388m of repayments, £82m of PIK and £132m* of capital gains "������� ��������� �$$ ���%� #��� &�'���'� 2004 Picard, Eurofarad, TeamSystem 17% 1.9x 2005 Geoservices 29% 2.0x Medica, Visma, Loyalty Partners, Pasteur Cerba, 2006 19% 1.8x Sebia, Gerflor 2007 TBC 16% 1.5x 2008 BI, Labco** 16% 1.4x ('������$������ �!) �*!+ * Excludes £1m capital gains on Resource Europe CLO equity ** Partial exit Intermediate Capital Group plc Intermediate Capital Group plc Intermediate Capital Group plc 17 17 17
Portfolio Update Intermediate Capital Group plc
Investment portfolio Performance vs. prior year Percentage of assets performing at or above prior year 80% 70% 60% 50% 40% 30% 20% 10% 0% Jun908 Sep908 Dec908 Mar909 Jun909 Sep909 Dec909 Mar910 Jun910 Sep910 Dec910 Mar911 Intermediate Capital Group plc 19
Top twenty assets "��,���� (������� ������� #��� Private clinic manager France → Electronic publisher of company information Belgium ↑ Textile rental and cleaning France ↑ Airport operator UK ↑ Inspection, certification and technological services Spain ↑ Waste management solutions provider UK ↓ Elderly care homes Sweden ↑ Speciality chemicals for the construction industry France ↑ Credit Bureau Australia → Patent & legal services UK ↑ Share registry and fund administration services Australia ↑ Supplier of fire protection systems and services Germany → PVC Flooring France ↑ Drug development and manufacturer France ↑ Provider of services and technical solutions for utilities Germany ↑ Diversified fund of senior loans Europe n/a Auto Equipment France → Tour operator Spain ↓ Home delivery of frozen foods Germany ↑ Software solutions Italy ↑ Intermediate Capital Group plc 20
Top ten equity assets "��,���� (������� ������� #��� Patent & legal services UK ↑ PVC Flooring France ↑ Fixed satellite services USA ↑ Home delivery of frozen foods Germany ↑ Livestock identification systems France ↑ Insurance and roadside assistance UK → Software solutions Italy ↑ Inspection, certification and technological services Spain ↑ Food manufacturing France ↓ Share registry and fund administration services Australia ↑ Intermediate Capital Group plc 21
Trend in provisions for portfolio companies Gross provisions Write9backs 250 200 150 £m 100 50 0 H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 Intermediate Capital Group plc 22
AUM and Fund Performance Intermediate Capital Group plc Intermediate Capital Group plc 23
Third party funds under management CFM Funds Mezz Funds 10 9 8 7 6 €bn 5 4 3 2 1 0 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY08 FY09 FY10 FY11 Intermediate Capital Group plc 24
Top quartile Private Equity performance $-����!� ����� ����� ���.� �&�����!� � !�-��� -��� -��� -��� -��� -��� 2nd Top Top Top Top Top Quartile Quartile Quartile Quartile Quartile Quartile 1.90x 1.7x Net Money Multiple 1.6x 1.70x 1.4x 1.50x 1.3x 1.3x 1.2x 1.30x 1.10x 0.90x 0.70x 1998 2000 2003 2006 2008 2008 ICG Top Quartile PE Net Money Multiple Source: ICG/Venture Economics/ThompsonOne as of 31 December 2010 Intermediate Capital Group plc 25
Credit Fund Management performance Leveraged loans ICG Loan Default Rate ICG Senior Secured Loan Performance* vs. vs. S&P Speculative Grade* Default Rate Credit Suisse Western European Loan Index 16% ��/) ���) 14% ��/) ���) 12% ��/) ���) 10% ��/) 8% ���) /) 6% �) !/) 4% !�) 0/) 2% 0�) ./) 0% 1��2�/ &��2�. 3�'2�. 1��2�. &��2�0 3�'2�0 1��2�0 &��2�! 3�'2�! 1��2�! &��2� 3�'2� 1��2� &��2�� 3�'2�� 1��2�� &��2�� 2003 2004 2005 2006 2007 2008 2009 2010 LTM 31/03/11 ICG Marketvalue Loan Composite CS Western European Loan Index ICG Loans default rate S&P Loan default rate Source: ICG, S&P, last update as at December 2010 Source: ICG per 31 March 2011 * Composite of all discretionary market value funds managed by ICG Intermediate Capital Group plc 26
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