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 � 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 2
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% Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- 08 08 08 09 09 09 09 10 10 10 10 11 11 11 Intermediate Capital Group plc 4
Top twenty assets Vs Last Business Country Year 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 ↑ Intermediate Capital Group plc 5
Trend in Provisions for Portfolio Companies Loan Stocks Gross Provisions Write-backs 250 200 150 £m 100 50 0 H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 Intermediate Capital Group plc 6
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 7
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 8
New Lending vs Repayments* New Lending Repayments 1,400 1,200 1,000 800 £m 600 400 200 0 Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- 02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 *6 months moving average Intermediate Capital Group plc 9
Market Update Intermediate Capital Group plc
LBO Market Significant decrease in High Yield issuance in Q3 European High Yield Issuance 50 45 40 35 30 €bn 25 20 15 10 5 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 H1 2011 Q3 Source: S&P Intermediate Capital Group plc 11 11
LBO Market S lowdown in leveraged loans issuance expected in Q4 180 160 140 120 100 €bn 80 60 40 20 0 1 0 1 2 3 4 5 6 7 8 9 0 3 0 0 0 0 0 0 0 0 0 0 1 H Q 0 0 0 0 0 0 0 0 0 0 0 1 1 2 2 2 2 2 2 2 2 2 2 2 1 1 0 0 2 2 Source: S&P Intermediate Capital Group plc 12 12
Price of loans attractive again 102 98 94 90 86 82 78 74 70 66 62 58 54 3 4 5 6 7 8 9 0 1 2 3 3 3 4 4 4 5 5 5 6 6 6 7 7 7 8 8 8 9 9 9 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - c c c c c c c c c r n p r n p r n p r n p r n p r n p r n p r n p r n p a a a a a a a a a e e e e e e e e e u e u e u e u e u e u e u e u e u e M M M M M M M M M D J S D J S D J S D J S D J S D J S D J S D J S D J S Market Flow names Source: S&P, European Secondary Pricing Source: Markit Loans Intermediate Capital Group plc 13 13
LBO Market LBO Volumes 300 250 200 €bn 150 100 50 0 0 1 2 3 4 5 6 7 8 9 0 1 3 0 0 0 0 0 0 0 0 0 0 1 H Q 0 0 0 0 0 0 0 0 0 0 0 1 2 2 2 2 2 2 2 2 2 2 2 1 1 1 0 0 2 2 Source: S&P Intermediate Capital Group plc 14 14
LBO Market European Significant Private Equity dry powder remains Dry powder Funds raised 200 180 160 140 120 €bn 100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 Nov-11 Source: Preqin Intermediate Capital Group plc 15 15
LBO Market European leveraged loans and HY bonds maturity profile 60 50 40 €bn 30 20 10 0 2011 2012 2013 2014 2015 2016 2017 2018 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 16
LBO Market European b anks need to degear Total European Bank Assets / GDP 250% 200% 150% 100% 50% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: S&P Intermediate Capital Group plc 17 17
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 Europe Institutional Loan and HY markets Europe Institutional Loan and HY markets Europe Institutional Loan and HY markets Europe Institutional Loan and HY markets Bonds Loans 1,600 Bonds Loans 1,600 1,400 1,400 1,200 1,200 1,000 1,000 $bn $bn $bn $bn $bn $bn $bn $bn 800 800 600 600 400 400 200 200 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: S&P LCD, Deutsche Bank Intermediate Capital Group plc 18
Commercial Real Estate Market European Commercial Real Estate debt maturity profile 200 150 €bn 100 50 0 2011 2012 2013 2014 2015 2016 2017 Source: CBRE Intermediate Capital Group plc 19
Commercial Real Estate Market European CMBS issuance 90 80 70 60 50 €bn 40 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD Source: CBRE Intermediate Capital Group plc 20
Fund Management Intermediate Capital Group plc 21
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 22
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 23
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 24
Third party funds under management 10,000 9,000 8,000 7,000 6,000 €m 5,000 4,000 3,000 2,000 1,000 - FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY08 FY09 FY10 FY11 H1 12 Mezzanine funds Credit funds Note: ICG financial year ends 31 st March. Intermediate Capital Group plc 25
Financial Review Intermediate Capital Group plc 26
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