Pre-close period briefing

25 Sep 2008

3i Group plc ("3i"), the international private equity company, will be holding discussions with analysts and investors ahead of its close period for the six months ending 30 September 2008. This statement sets out the information that will be covered in those discussions. 3i expects to announce its results for the six months ending 30 September 2008 on 6 November 2008.

Commenting on the statement, Philip Yea, 3i Chief Executive, said:

"In these markets, we continue to be highly selective in respect of new investment, rigorous in managing our existing portfolio, and focused on maximising cash to cash returns. In line with our expectation, our investment and realisations have been broadly balanced so far this year."

The main topics that will be discussed with analysts and investors are set out below.

1. Investments and realisations

3i invested a total of £622 million in the five months ended 31 August 2008 compared with £1,012 million in the equivalent period last year. In addition, £268 million (2007: £258 million) was invested on behalf of co-investment funds managed by 3i.

Realisation proceeds received by 3i were £560 million in the five months ended 31 August 2008 (2007: £1,011 million). This excludes the realisation proceeds of approximately £162 million from ABX, which are expected to be received shortly after 30 September 2008.

Investment and realisations by business line were as follows:

 

Investment £m   Realisation proceeds £m
(5 months ended) 31 August
2008
31 August
2007
  (5 months ended) 31 August
2008
31 August
2007
Buyouts 346 339   Buyouts 322 539
Growth Capital 229 445   Growth Capital 154 255
Infrastructure 22 1   Infrastructure 8 32
QPE - 182   QPE - 17
SMI - -   SMI 15 58
Venture 25 45   Venture 61 110
Total 622 1,012   Total 560 1,011

 

2. Returns

The three main drivers of 3i's gross portfolio return are: realised profits, movements in unrealised value and portfolio income.

Realisations for the five month period have been achieved at aggregate uplifts over 31 March 2008 carrying values at similar levels to the prior 12 months. Portfolio income for the half year to 30 September 2008 is expected to be ahead of the same period last year.

As usual, movements in unrealised value will be an important element in the determination of 3i's results for the half year to 30 September 2008 and will be derived from the detailed valuation exercise carried out on the investment portfolio as at that date.

For further information, please contact:

3i Group plc
Simon Ball, Finance Director - 020 7975 3356
Julia Wilson, Finance Director Designate - 020 7975 3356
Patrick Dunne, Group Communications Director - 020 7975 3283
Rachel Richards, Press office - 020 7975 3573

Maitland Consultancy
Lydia Pretzlik - 020 7379 5151

This statement aims to give an indication of 3i's expected return (and of key components of that return) for the six months to 30 September 2008. These indications reflect the Board's current view. They are subject to a number of risks and uncertainties and could change. In particular, an important element in the determination of 3i's results for the six months to 30 September 2008 is the detailed valuation exercise carried out on its investment portfolio as at that date. The final results for the six months to 30 September 2008, due to be reported on 6 November 2008, may differ accordingly. Factors which could cause or contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within 3i's portfolio.