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3i Infrastructure plc

3i Group plc Continue to perform well in FY2019

3i Group plc (LON:III) today announced results for the year to 31 March 2019

Strong performance across our business

· Total return of £1,252 million or 18% on opening shareholders’ funds (March 2018: £1,425 million, 24%) and NAV per share of 815 pence (31 March 2018: 724 pence) after paying 37 pence of dividends in the year

· Our Private Equity business continues to perform well, with underlying earnings growth underpinning a gross investment return of £1,148 million or 20%. This was driven by assets including Action, Cirtec Medical, Audley Travel, Aspen Pumps and Formel D

· In competitive markets the Private Equity team maintained its cautious approach to pricing, deploying proprietary capital of £332 million, including two new investments. We intensified our focus on M&A activity by our portfolio companies and completed eight bolt-on acquisitions in total during the year, most of which were self-funded. We also re-invested £529 million into Scandlines for a 35% stake

· Our Infrastructure business had another outstanding year. 3i Infrastructure plc (“3iN”) generated a total shareholder return of 33% as a result of good underlying portfolio performance and the realisation of XLT. Proceeds from XLT and cash in the business were redeployed by the team in three new investments

· Realisations remained strong, with proceeds of £1,242 million, or £713 million after the £529 million reinvestment in Scandlines

· Total dividend of 35 pence per share for FY2019, with a dividend of 20 pence per share to be paid in July 2019 subject to shareholder approval

Simon Borrows, 3i’s Chief Executive, commented:

“3i continued to perform well in FY2019, delivering a total return of 18%, supported by good earnings growth across our Private Equity portfolio and by excellent returns from our Infrastructure team. In very competitive markets, we remained disciplined investors and focused on our buy-and-build platforms.

FY2020 appears to be starting in a similar way to FY2019, with significant political and market uncertainty and a growing tide of funds looking to invest in our markets. We remain cautious in this environment, which will lead us to be careful about the pricing of new investments and to deploy further capital in companies we already know well.

The Group’s portfolio of investments is positioned well and has good momentum for further growth. We have a clear strategic focus and will use our active management processes to deliver another good year of progress for our shareholders. “

Financial highlights

Year to/as at

Year to/as at

31 March

31 March

2019

2018

Group

Total return

£1,252m

£1,425m

Operating expenses

£126m

£121m

Operating cash profit

£46m

£11m

Realisation proceeds

£1,242m

£1,323m

Gross investment return

£1,407m

£1,552m

– As a percentage of opening 3i portfolio value

21%

27%

Cash investment

£859m

£827m

3i portfolio value

£7,553m

£6,657m

Gross debt

£575m

£575m

Net cash

£495m

£479m

Gearing1

nil

nil

Liquidity

£1,420m

£1,404m

Net asset value

£7,909m

£7,024m

Diluted net asset value per ordinary share

815p

724p