CEO Today United Kingdom Awards

www.ceotodaymagazine.com 60 CEO Today United Kingdom Awards 2018 FINANCIAL SERVICES SIMON BORROWS Chief Financial Officer of 3i Group FIRM PROFILE 3i is an investment company with two complementary businesses, Private Equity and Infrastructure, specialising in core investment markets in northern Europe and North America. Private Equity £5.8bn Proprietary capital value £8.3bn Assets under management Activity • Investment and asset management to generate capital returns • Investing in companies typically with an Enterprise Value of €100m–€500m at acquisition in our core investment markets of northern Europe and North America • Portfolio of 35 unquoted assets and one quoted stake • Invested in Action and Scandlines for the medium term to generate capital returns and cash income Infrastructure £832m Proprietary capital value £3.4bn Assets under management Activity • Investment and asset management to generate capital returns and cash income • Investment Adviser to 3iN, which focuses on economic infrastructure and greenfield project investments in developed economies, principally in Europe • Manage three European Infrastructure funds and one India Infrastructure fund • Set up a North American Infrastructure team Our strategic objectives 3i is an investment company with two complementary businesses, Private Equity and Infrastructure. We focus on opportunities where our sector and investment expertise, combined with our international presence and strong capital position, can create material value for our stakeholders. 1. Grow investment portfolio earnings FY2018 progress 91% of Private Equity portfolio companies1 (by value) grew earnings in FY2018 1. Includes 21 companies valued on an earnings basis, Basic-Fit and Scandlines. FY2019 outlook • Action’s growth is expected to continue as it plans to open more stores in 2018 than in 2017 • Strong performance from 2013-16 vintage and good potential in the 2016-19 vintage • Close monitoring of potential impact of geo-political and macro- economic uncertainty 2. Realise investments with good cash-to-cash returns FY2018 progress £1,002m Private Equity proceeds £143m Special dividend from 3iN FY2019 outlook • Scandlines disposal and partial re-investment (net proceeds of c.€350 million) expected to complete in the summer of 2018 • Expect realisations to be at least £750 million, subject to market conditions 3. Maintain an operating cash profit FY2018 progress £11m Operating cash profit1 1. Operating cash profit is an APM. FY2019 outlook • Increasing cash income expected from Infrastructure and Scandlines • Continue to focus on generating income where appropriate from the remainder of the Private Equity portfolio • Cost discipline will be maintained 4. Use our strong balance sheet FY2018 progress £587m Invested in Private Equity £217m Invested in Infrastructure FY2019 outlook • Plan to invest up to £750 million pa of proprietary capital in four to seven Private Equity investments, whilst maintaining discipline on entry prices • Advise 3iN on its recent investments to deliver good returns and source further investment opportunities