SVIIT Interim results for six months to 30 June 2003

Transcription

1 SVIIT Interim results for six months to 30 June 2003

2 Dec-02 Apr-03 Aug-03 Aug-02 Apr-02 Dec-01 SVIIT NAV Growth vs. Peer Group SVIIT NAV Pantheon NAV Candover NAV Electra NAV Graphite NAV 3i NAV FTSE World Index ( ) FTSE All-Share Aug-98 Dec-98 Apr-99 Aug-99 Dec-99 Apr-00 Aug-00 Dec-00 Apr-01 Aug-01 Source: Datastream Estimates 2

3 SVIIT Performance 1, 3, 5 and 7 years 1 Year SVIIT Share Price SVIIT NAV FTSE All-Share FTSE World ( ) Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Aug-00 Oct-00 Dec-00 Feb-01 Apr-01 Jun-01 Source: Datastream Estimates 3 3 Years Apr-02 Aug-01 Oct-01 Dec-01 Feb-02 Jun-02 Aug-02 Oct-02 Dec-02 Feb-03 Apr-03 Jun-03 Aug-03 SVIIT Share Price SVIIT NAV FTSE All-Share FTSE World ( ) SVIIT Share Price SVIIT NAV FTSE All-Share FTSE World ( ) 5 Years Years Aug-98 Nov-98 Feb-99 May-99 Aug-99 Nov-99 Feb-00 May-00 Aug-00 Nov-00 Feb-01 May-01 Aug-01 Nov-01 Feb-02 May-02 Aug-02 Nov-02 Feb-03 May-03 Aug-03 May-96 Sep-96 Jan-97 May-97 Sep-97 Jan-98 May-98 May-00 Sep-98 Jan-99 May-99 Sep-99 Jan-00 Sep-00 Jan-01 May-01 Sep-01 Jan-02 May-02 Sep-02 Jan-03 May-03 Aug-03 SVIIT Share Price SVIIT NAV FTSE All-Share FTSE World ( )

4 Portfolio Highlights (six months to 30 June 2003) Solid set of results in a difficult operating environment - net assets broadly in-line with December at million (444.2p per share) Portfolio companies continue to repay debt, despite overall flat earnings growth Valuations stable even though average EBIT multiples down Strong performance of euro over six months offset by negative effect of US dollar and write-down of Memec Memec written-down by 7.4 million - lower comparable EBIT multiples and negative effect of US dollar on the valuation 4

5 Portfolio Highlights (continued) Calls of 26.0 million paid 6 new investments Since June 2003, 68.2 million of calls paid 4 investments (3 will feature in 20 Largest Underlying Companies at December 2003) SEAT Pagine Gialle approx. 42 million Holmes Place - approx. 17 million Rodenstock - approx. 8 million 3.7 million of distributions lower than average premium of 12% average premium since inception is 46% Since June 2003, 7.8 million of distributions received 5 Compound growth in NAV over five years is 16.0% p.a. - compares to a 6.3% p.a. fall in FTSE All-Share Index and 0.2% p.a increase in FTSE World Index

6 Changes in valuations from December 2002 (illustrative) m m Misc write-ups/downs, expenses, FX movement million Misc. Write ups/downs, expenses Euro Dental Euro Dental million TFL million TFL Memec Memec - ( 7.4 million) 6 December 2002 June 2003

7 Valuation Bases Majority of the portfolio (51%) continues to be valued on an earnings basis After a range of discounts, the weighted average: EBIT (50%) Like for Like Overall Portfolio June December Non semi-conductor companies (38% of portfolio) 5.9 P/E (1%) Companies valued on a P/E basis are effectively valued at 9.0x Average discount applied to quoted investments: 16% 7 22% of the portfolio (by value) written down 12% on an earnings basis (Memec) 10% to cost

8 Portfolio Analysis (30 June 2003) EVCA Sector Analysis (30 June 2003) Analysis by Market (30 June 2003) 32% 19% 10% Computer & Other 21% Medical & Health Consumer Continental Europe North America 9% Industrial Products & Services Chemicals 12% 37% UK Far East/Asia Pacific Other Manufacturing Multinational Other Services 18% 10% Construction 1% 5% 4% 24% Portfolio Valuation Basis (30 June 2003) 12% 10% 39% 3% 5% Cost Earnings W/Down - Earnings W/Down Third Party Quoted 8 31%

9 Cashflow Calls of 26.0 million were paid in first half (H2 2002: million) Distributions of 3.7 million were received Cash balance of 32.5 million - since June: 68.2 million of calls paid 7.8 million of distributions received 7.6 million investment in The SVIIT UK Focus Fund 9.8 million of proceeds from convertible At June 2003, uncalled commitments of million (June 2002: million) are expected to be met from cash resources, bank facilities and future distributions from Schroder Ventures and Permira funds Since June million commitment made to Permira Europe III at its first closing may make a further commitment at the fund s final close US$50 million commitment to be made to The Japan Fund IV at its first closing in Q4 40 million of subordinated convertible bonds raised in May, a further 9 million issued in August 9 Bank line increased by 25% to 285 million

10 Outlook Public markets have stabilised If trend continues will benefit portfolio valuations and improve exit environment Comparable portfolio companies share prices are up Some recent positive trading signs 10

11 Twenty Largest Underlying Companies (30 June 2003) Company Travelodge & Little Chef Memec Cognis Ferretti Date December 2002 October 2000 November 2001 November 2002 Business Head Office Second largest operator of budget hotels in the UK. Little Chef is the largest roadside restaurant chain UK Semi-conductor distribution business US Speciality chemicals Germany Luxury boats Italy Value Valuation Basis % of Net Assets 60.3 million Cost 13.0% 46.9 million EBITDA (written-down) 10.1% 40.7 million EBITDA 8.8% 39.4 million Cost 8.5% Company Sirona Dental Group Hogg Robinson Takko Premiere Date November 1997 June 2000 March 2000 February 2003 Business Manufacturer of professional dental equipment Corporate travel and outsourced employee services Fashion retailer Pay TV operator Head Office Germany UK Germany Germany Value Valuation Basis % of Net Assets 26.9 million EBIT 5.8% 26.6 million EBITDA 5.7% 21.5 million EBIT 4.6% 18.3 million Cost 4.0% 11

12 Twenty Largest Underlying Companies (30 June 2003) Company austriamicrosystems Leica Microsystems Silverlink Holdings Grammer Date June 2000 March 1998 December 2002 June 2001 Business Mixed signal ASICS semi conductors for telecom, industrial and automotive sectors Manufacturer of microscopes and related equipment Owns and/or manages a group of luxury resorts and spas Seating equipment for the automotive/commercial vehicle industry Head Office Austria Germany Asia Germany Value Valuation Basis % of Net Assets 17.1 million Write-down 3.7% 13.9 million EBITDA 3.0% 13.1 million Cost 2.8% 10.7 million EBITDA 2.3% Company Kiekert EEMS TFL Euro Dental Date September 2000 May 1999 March 2001 January 2000 Business Produces complete systems devices that open, close, lock and unlock cars Assembly and test services for DRAM and flash memory chips Supplier of chemicals to the leather industry Dental consumables Head Office Germany Italy Germany Germany Value Valuation Basis % of Net Assets 10.6 million Write-down 2.3% 10.2 million EBITDA 2.2% 10.1 million EBITDA 2.2% 9.2 million EBIT 2.0% 12

13 Twenty Largest Underlying Companies (30 June 2003) Company A P Plasman Parkway Holdings Mesa Communications Washtec Date September 2000 December 1999 March 2000 February 1998 Business Manufacturers mould and plastics components in addition to the painting and finishing parts Private healthcare provider in Singapore Owner and manager of wireless communication towers Global leader in the manufacture of car wash equipment Head Office Canada Asia USA Germany Value Valuation Basis % of Net Assets 7.9 million Write-down 1.7% 7.7 million Quoted 1.7% 7.1 million Write-down 1.5% 6.6 million Quoted 1.4% 13

14 Adjusted Net Assets - pence per share Adjusted NAV (movements in cash and quoted portfolio, applying same discounts) 24.7p 444.2p 38.6p 448.9p Quoted 459.1p 507.5p Unquoted Cash Convertible 27.1p (66.7p) (22.8p) (74.4p) 14 Published NAV at 30 June 2003 Adjusted NAV at 29 August 2003

15 Operating Review

16 Fund Advisory Business Busy six months, key milestones met, on track to provide revenue and profit streams that will, over time, provide incremental value to SVIIT Schroder Private Equity Fund of Funds - now 95% committed to 19 funds Schroder Private Equity Fund of Funds II - marketing of successor fund of funds continuing, expected to have a first close Q P123 - expected to have a final close in the next two months The SVIIT UK Focus Fund - Dublin listed OEIC, trading commenced in August Strategic Recovery Fund - launched and expected to have a first close Q

17 P123 Update Currently marketing P123 with a target of raising 215 million of outside capital Based on June 2003 figures (and assuming target fundraising reached): SVIIT will transfer 135 million of assets in Permira Europe I and II (approx. 50% of holding in PE I and 17% of holding in PE II) to P123 in return for 40% of P123 P123 will commit 471 million to Permira Europe III SVIIT will therefore have 181 million (40%) of this commitment on a look through basis Transfer will not effect NAV - SVIIT maintains exposure to 40% of PE I and II assets and new capital raised SVIIT will report on a look through basis 17 SVIIT will also benefit from a 1.5% management fee p.a.

18 Appendices

19 Schroder Ventures and Permira - Performance 25 Aggregated Net IRRs (all funds) since inception (1983) 20 % Jun- 98 Dec- 98 Jun- 99 Dec- 99 Jun- 00 Dec- 00 Jun- 01 Dec- 01 Jun- 02 Dec- 02 Jun- 03 Schroder Ventures & Permira Weighted Stock Market 19

20 Share Price Performance Sterling pence per share May-96 Oct-96 Mar-97 Share Price NAV Aug-97 Jan-98 Jun-98 Nov-98 Apr-99 Sep-99 Feb-00 Jul-00 Dec-00 May-01 Oct-01 Mar-02 Aug-02 Jan-03 Jun p 444.2p SVIIT Share Performance Premium to June 2003 NAV 11% Private Equity Investment Trust Sector average discount 30 June 1999 (14%) 31 December 1999 (6%) 30 June 2000 (7%) 31 December 2000 (4%) 30 June 2001 (9%) 31 December 2001 (17%) 30 June 2002 (14%) 31 December 2002 (25%) 18 August 2003 (7%) Source: Datastream 20

21 Fund Commitments (30 June 2003) Amount Amount SVIIT Called Uncalled Uncalled (Local Currency) (Local Currency) Commitment* m Permira Europe II 492.7m 257.3m The Japan Venture Fund III 2,962.6m 487.4m 2.5 Schroder Ventures Asia Pacific Fund US$73.7m US$34.9m 21.1 Schroder Ventures US Fund US$42.1m US$31.1m 18.8 Schroder Canadian Buy-Out Fund II C$17.0m C$0.9m 0.4 Schroder Canadian Buy-Out Fund III C$14.0m C$36.5m Schroder Ventures International Life Sciences Fund II US$77.6m US$4.1m 2.5 International Life Sciences Fund III US$9.4m US$65.6m 39.8 Total * based on exchange rates at 30 June 2003

22 22 Ageing of Portfolio (30 June 2003) & Prior W/Down Cost Earnings/third party Quoted

23 P123 Structure P123 will be formed as a Guernsey company with holdings in three Permira Europe funds Realisation proceeds will be distributed back to shareholders once all liabilities are covered Potential Structure SVIIT secondaries Permira Europe I interests worth 50m Permira Europe II interests worth 85m (plus 29 million uncalled commitment) 135m Investors contribute new equity Cash 215m 40% 60% P123 managed by SVIIT Investment Managers Launch assets - Cash 215m - Permira Europe I & II interests 135m Total equity 350m Over-commitment facility and expected 150m cash-flow from PE I and II 29m to Permira Europe II 471m to Permira Europe III 23

24 Disclaimer This presentation is directed only at persons who (i) are persons falling with Article 49(2)(a) to (d) ( high net worth companies, unincorporated associations etc. ) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) or (ii) have professional experience in matters relating to investments (all such persons together being referred to as relevant persons ). This presentation must not be acted on or relied on by persons who are not relevant persons. 24