Our strategic objectives

To increase 3i’s competitive advantage, we focus on opportunities where our sector and market expertise, combined with our strong capital position, can create material value for shareholders.

    2016 progress   2017 outlook
Grow investment portfolio earnings   Weighted average LTM earnings1 increased by
17%
 
  • Strongest assets are well positioned in their chosen markets
  • Macro-economic pressures expected to continue
  • Planned M&A activity in our newer investments
Realise investments with good cash-to-cash returns   Private Equity proceeds of
£743m
 
  • Private Equity expects to remain a net divestor in FY2017 due to a healthy pipeline of realisations and significant amounts of capital chasing limited investment opportunities that may mean that prices move outside our target range
Maintain an operating cash profit   Operating cash profit of
£37m
 
  • Continue to focus on generating income from Private Equity
  • Remain disciplined over costs
Use our strong balance sheet   Proprietary capital
£4.5bn
Net cash
£165m
 
  • Subject to available investment opportunities, we plan to invest €500 million – €750 million p.a. in four to seven Private Equity investments
  • Support 3iN’s equity fund raising with an intention to maintain our 34% investment
  • FY2017 bond repayment of €331 million will be met out of cash resources
Increase shareholder distributions   Dividend of
22p
 
  • Announced updated dividend policy and expect to pay a base dividend of 16 pence per share in respect of FY2017 and an additional dividend based on a share of net realised proceeds
1 Last 12 months (“LTM”) earnings in Private Equity companies valued on an EBITA/EBITDA basis (31 companies).

Corporate Factsheet (PDF)