LDC March Presentation

2. LDC Private Equity briefing in
conjunction with DED
16th March 2017

3. 2017/18 – the Isle of Man
Government’s focus:
Strategic Objectives

4. “Enterprise & Opportunity Island”
DED Enterprise Initiatives include : -
• Online “Toolkit”
• Micro grants
• Small Business support
• Marketing Support
• Financial Assistance Schemes
• Employer Assistance Scheme
• Training Grants

5. And the “Enterprise
Development Scheme”
The £50 million Enterprise
Development Scheme, was
launched in April 2016.
Here for ON – ISLAND
BUSINESSES !!

6. Scheme Design
The scheme is divided into 3 core
parts
• Fledgling
To include ‘Micro’ & ‘Small’ Grants.
• Accelerator
To provide Loan & Equity support to
SME’s entering next growth phase.
• Relocator
To invest in larger businesses
entering the ‘commercialisation’
stage.

7. EDS Campaign
My Enterprise campaign featured in local media and accompanying
videos appeared online

8. Summary
• Enterprise Development
Scheme launched April
2016
• SPARK Impact appointed to
manage the Scheme
• Strong pipeline of circa 90
leads already
• First deals to be
announced soon!

9. Introduction to LDC

10. • CHIEF MINISTER SLIDE

11. Fuelling Growth with LDC

12. 12
LDC context & background
Driving Growth Together
- What Private Equity look for
- Making it happen – examples
Cautionary Note
Summary call to arms
I PLAN TO COVER

13. ABOUT LDC

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BACKGROUND TO LDC
Scale &
Experienc
e
Most
active
investor
Backing
manageme
nt teams
Flexible
Funding
structure
Breadth of
investmen
t
Actively
adding
value
Coverage
Team &
appetite
Portfolio
scale &
potential
Track
Record of
Success
Private Equity Arm of Lloyds Banking Group

15. 15
Management
teams
Growth Potential Point of
difference
Established
Profits.
Track record Ways we can add
value
OUR INVESTMENT CRITERIA

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The commitment to supercharge
growth through buy & build,
organic or international
expansion strategies and follow-
on funding.
Our scale and history means we
have valuable sector
experience to call on; though
you know your business best.
We are well connected locally
which means we can facilitate
introductions and help your
business succeed.
Our value enhancement team
looks to help business
outperform and increase
shareholder value.
LDC has a network of hundreds
of high-calibre, trusted Non-
Executive Directors who bring
years of industry expertise.
The synergies in our portfolio
mean they often become
customers of each other and
share knowledge.
ADDING VALUE
LDC ADDS VALUE TO ITS PORTFOLIO COMPANIES IN A
NUMBER OF WAYS

17. INVESTMENTS

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TRANSACTIONS: 2016 DEALS
THE PALLET NETWORK
EQUITY <£15M
RE-INVESTMENT
SUPPORT SERVICES
ZYRO-FISHER
EQUITY £15M - £30M
MANAGEMENT BUYOUT
RETAIL & CONSUMER
GIACOM
EQUITY <£15M
MANAGEMENT BUYOUT
TMT
CIPHR
EQUITY <£15M
MANAGEMENT BUYOUT
TMT
BYBOX
EQUITY £30M - £50M
MANAGEMENT BUYOUT
TMT
CUTS ICE
EQUITY <£15M
DEVELOPMENT CAPITAL
RETAIL & CONSUMER
CITYSPRINT
EQUITY £30M - £50M
SECONDARY BUYOUT
SUPPORT SERVICES
VITAL INGREDIENT
EQUITY <£15M,
MANAGEMENT BUYOUT
RETAIL & CONSUMER
CMS WINDOW SYSTEMS
EQUITY <£15M
MANAGEMENT BUYOUT
CONSTRUCTION &
PROPERTY
ADEY
EQUITY £30M - £50M
MANAGEMENT BUYOUT
INDUSTRIALS
TEAM17
EQUITY £16.5M
DEVELOPMENT CAPITAL
TMT
PAW HOLDINGS
EQUITY £15M - £30M
MANAGEMENT BUYOUT
CONSTRUCTION
PANTHER LOGISTICS
EQUITY <£15M
MANAGEMENT BUYOUT
SUPPORT SERVICES
TXM PLANT
EQUITY £15M - £30M
MANAGEMENT BUYOUT
INDUSTRIALS
MAGICARD
EQUITY <£15M
MANAGEMENT BUYOUT
TMT
APPLIED COMPOSITES
EQUITY <£15M
DEVELOPMENT CAPITAL
INDUSTRIALS
ELLIS WHITTAM
EQUITY <£15M
DEVELOPMENT CAPITAL
SUPPORT SERVICES
MITREFINCH
EQUITY £20M+
MANAGEMENT BUYOUT
TMT
IN 2016 LDC INVESTED £330M IN DEALS ACROSS A
VARIETY OF SECTORS, DEAL SIZES AND EQUITY
STAKES.

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TRANSACTIONS: 2017 DEALS
AWAY RESORTS
EQUITY <£5M
LDC provided
additional capital for
the acquisition of
Sandy Balls Holliday
Village, creating a
group valued at
£100m.
ACQUISITION
TRAVEL & LESIURE
RUSH
EQUITY £16.5M
Rush secured a £16m
minority investment from
LDC to support a
national rollout
programme.
MANAGEMENT
BUYOUTRETAIL &
CONSUMER
CHARGEPOINT
EQUITY £15M - £30M
ChargePoint secured
investment to drive
further international
expansion and invest in
development of new
products.
MANAGEMENT
BUYOUTHEALTHCARE
SO FAR IN 2017, LDC HAS INVESTED OVER £85M IN
DEALS ACROSS A VARIETY OF SECTORS, DEAL SIZES
AND EQUITY STAKES.
FISHAWACK
EQUITY £15M - £30M
LDC alongside the
management team
acquired Fishawack in
a deal that values the
business at £38m.
MANAGEMENT
BUYOUTHEALTHCARE
BLUE BAY TRAVEL
EQUITY £6.5M
Blue Bay Travel
secured a £6.5m
investment from LDC
to accelerate growth.
DEV CAP
TRAVEL & LESIURE
NODE4
EQUITY £15M - £30M
LDC re-invested in
Node4 to further
support the business’
fast growth strategy.
DEV CAP
TMT

20. DRIVING GROWTH
TOGETHER

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An opportunity to invest
Alignment with the teams they partner
with
Ability to work together to create
shareholder value and then realise it
WHAT PRIVATE EQUITY ARE
LOOKING FOR….

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Shareholder value is created through
- Profit growth
- Cash generation
- PE Arbitrage
CREATING SHAREHOLDER
VALUE….

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BUY & BUILD
Enabling a business to acquire
complementary businesses
either vertically or horizontally
within an industry.
ORGANIC GROWTH
Through new contract wins, roll-
out, product or service
developments, new facilities and
entering into new sectors or
areas of business.
INTERNATIONAL EXPANSION
Expanding the international
reach of business either trough
acquisition, partnership of
PRIVATE EQUITY AS A
CATALYST FOR GROWTH
 Every company's growth story is different, but three common categories include:

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• Using capital to maximise the
organic plan
• Roll-out
• New contract wins
• Product or service
developments
• New facilities
• Entering into new sectors or
areas of business.
ORGANIC GROWTH
MINISTRY OF CAKE
2015 - 2016
Supporting organic
growth via new
product lines and
factory acquisition
increased sales to
>£30m.
EQUITY <£15M
RETAIL &
CONSUMER
FOREST HOLIDAYS
2012
Follow on funding to
support new sites and
accommodation.
EQUITY £15M - £30M
TRAVEL & LEISURE
PENN PHARMA
2007 - 2014
Additional funding for a
new manufacturing
facility and investment
in new technology.
EQUITY £30M - £50M
HEALTHCARE
VYSIONICS
2011 - 2014
Investment in new
products helped
turnover grow from
£9.3m to £16m in 12
months.
EQUITY <£15M
SUPPORT SERVICES
BIFOLD GROUP
2012 - 2015
Supported Bifold’s
move into a new
30,000 sq. ft.
manufacturing facility.
EQUITY £30M - £50M
INDUSTRIALS
JOULES
2013
Between 2013 and
2015 revenues
increased by 50%
driven by 37 new
stores and e-
commerce.
EQUITY £22M
RETAIL &
CONSUMER

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Website
Deal
Year
Employee
s
Turnover
EBITDA
RUSH
• A leading Hair & Beauty Brand
• 85 salons, L’Oreal is a strategic partner
Partnered with LDC in 2017
• Supporting UK national roll-out
• Technology to enhance the customer experience
• Brand & Product Opportunities
www.rush.co.uk
Management Buyout
2017
700
£30m - £100m
£4m
ORGANIC GROWTH - RUSH

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LDC is an expert in helping
supercharge the growth of UK-
based businesses internationally
in all parts of the world, having
helped companies across all
sectors; from retail to healthcare
and technology.
INTERNATIONAL EXPANSION
MICROLEASE
2006 -2017
During LDC’s 10-year
tenure, international
revenues at
Microlease increased
from £9m to £92m
(900%).
EQUITY <£15M
TMT
SYNEXUS
2015 - 2016
Acquisition to enter the
US market and new
research centres in
Bulgaria, Poland and
Romania.
EQUITY £30M - £50M
HEALTHCARE
ATG ACCESS
2013
Secured new contracts
at home and abroad
including: in China,
Amsterdam, Oslo and
Doha.
EQUITY <£15M
INDUSTRIALS
JOULES
2013
Increased international
revenues by 198%
over a three year
period.
EQUITY £22M
RETAIL &
CONSUMER
SEABROOK
2015
Supported Seabrook’s
first international deal
in the Middle East as
part of a major export
drive.
EQUITY £15M - £30M
RETAIL &
CONSUMER
EDM
2011
Topped Sunday Times
international Track 200
having grown
international sales by
247% a year.
EQUITY £50M -
£100MSUPPORT SERVICES

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Website
Deal
Year
Employee
s
Turnover
EBITDA
EDM
• International Information Management Specialist
• Original LDC support in 2011
• 8 acquisitions including in US – an acquisition which doubled
the size of the business
• Topped 2016 Sunday Times International Track 200
• Grown international sales has supported profit growth from
£1m in 2011 to £15m today
www.edmgroup.com
Management Buyout
2011
1000
£30m - £100m
£10m - £20m
INTERNATIONAL - EDM

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In the last five years, LDC has
invested more than £150million
in follow on funding to support
the acquisition strategies of 27
portfolio companies.
BUY & BUILD
EDM
2010
Seven strategic
acquisitions which
have seen the
company double in
size.
EQUITY £50M -
£100MSUPPORT SERVICES
CITYSPRINT
2016
LDC has supported
five acquisitions in the
first six months of our
partnership.
EQUITY £30M - £50M
SUPPORT SERVICES
INPROVA GROUP
2014
Acquired two domestic
energy businesses, as
part of plans to double
the size of the business
over the next three years.
EQUITY <£15M
SUPPORT SERVICES
A-GAS
2011
£30m of follow-on
funding to back six
international
acquisitions creating a
47% increase in
revenues.
EQUITY £50M -
£100MINDUSTRIALS
EQUIOM
2013
With support from
LDC, ten acquisitions
have helped to
increase the business’
revenues by 400%.
EQUITY £15M - £30M
FINANCIAL
SERVICES
NODE4
2013
Node4 activated a
strategic buy & build
strategy that saw the
business complete
three acquisitions .
EQUITY £15M - £30M
TMT

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Website
Deal
Year
Employee
s
Turnover
EBITDA
MICROLEASE
• £30m MBO of global electronic testing group in 2006
• LDC supported
• 6 acquisitions including Metric Test in US
• New facility in Malaysia
• By 2017
• 10x increase in revenues
• Profits grow to £35m ebitda
• £240m sale to US hq’d Electro-Rent
www.microlease.com
Management Buy-Out
2006
260
£100m+
£35m
BUY & BUILD - MICROLEASE

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Challenges to successful investment completion
- Hockeystick forecasts - credibility
- Alignment with the investor (management &
owners)
- Who is buying with us?
- Price & process
- Trading through processes – momentum
- Poor processes & misalignment can kill deals
Build relationships early, reference and share the
ambition
A CAUTIONARY NOTE
WHERE IT CAN GO WRONG?

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1.
Private Equity can power growth and
value
2.
Partnering with ambitious and capable
management teams
3.
What is the real potential for your
business & ambition?
4.
Build relationships early – alignment and
trust
5.
Reference – style, capability &
behaviour
6.
Always consider the potential – we are
always happy to talk..
SUMMARY

32. Jonathan Caswell
t:07764 625267 e:jcaswell@ldc.co.uk

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IMPORTANT NOTICE
 Neither LDC (Managers) Limited (‘LDC’) nor any other member of the Lloyds
Banking Group will be acting for you in any way in relation to the transaction
referred to in this presentation. In particular LDC will not provide any investment
services to you or advise you or your shareholders on the merits of, or make
any recommendation to you in relation to, the terms of any transaction. LDC is
not therefore responsible for providing you with the protections afforded to its
clients and you should seek your own independent legal, investment, and tax
advice as you see fit.
 LDC will not advise you or your company on insurance matters or arrange
insurance cover. If you ask us to, LDC can give you contact details for an
insurance broker who can advise you and/or your company on any insurance
matters.
 The contents of this presentation are confidential to LDC and should not be
disclosed to third parties without LDC’s prior consent. No statements made by
LDC representatives shall give rise to any contractual or non-contractual
arrangement or professional engagement, or constitute any legally binding offer,
promise or assurance of any nature, unless expressly confirmed in writing and
signed by all relevant parties.
 No representative of LDC has authority to behave in any way which would
contradict the statements made above.
27/03/2017 LDC
LDC (Managers) Limited
Registered Office: One Vine Street,
London W1J 0AH
Registered in England No. 2495714
Authorised and regulated by the
Financial Conduct Authority, firm
reference number 147964
Part of Lloyds Banking Group

34. Sheila Dean,
Global CEO

35. LDC Private Equity briefing in
conjunction with DED – Q & A
16th March 2017