RESULTS
31 DECEMBER 2011
March 2012
LMS Capital plc
Disclaimer
Disclaimer: This presentation and any accompanying management discussion of this presentation (the "Presentation") is given by LMS
Capital plc (the "Company"). This Presentation is for information purposes only and does not constitute: (i) an invitation or inducement to
engage in any investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000 (as amended)
("FSMA"), whether in the United Kingdom or in any other jurisdiction; (ii) any recommendation or advice in respect of the ordinary shares
(the "Shares") in the Company; or (iii) any offer for the sale, purchase or subscription of any Shares. All written or oral forward looking
statements attributable to the Company or persons acting on its behalf are qualified in their entirety by these cautionary statements.
Forward-looking statements: No reliance may be placed for any purpose whatsoever on the information or opinions contained in or given
during this Presentation. The information and opinions contained in or given during this Presentation are provided as at the date hereof,
are not necessarily complete and are subject to change without notice. No representation, warranty or undertaking is given by or on
behalf of the Company as to the accuracy, completeness or reasonableness of the information or opinions contained in or given during
this Presentation and no liability is accepted or incurred by the Company for or in respect of any such information or opinions, provided
that nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently. The Presentation includes
statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements include all matters that
are not historical facts. They include statements regarding the Company's intentions, beliefs or current expectations concerning,
amongst other things, the Company's results of operations, financial conditions, liquidity, prospects, growth, strategies and the industry in
which the Company operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events
and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future
performance. The Company's actual results of operations, financial conditions and liquidity, and the development of the industry in which
the Company operates, may differ materially from those suggested by the forward-looking statements contained in the Presentation. In
addition, even if the Company's results of operations, financial conditions and liquidity, and the development of the industry in which the
Company operates, are consistent with the forward looking statements contained in the Presentation, those results or developments may
not be indicative of results or developments in subsequent periods. In light of those risks, uncertainties and assumptions, the events
described in the forward-looking statements in the Presentation may not occur. Other than in accordance with the Company's obligations
under the Listing Rules and the Disclosure and Transparency Rules, the Company undertakes no obligation to update or revise publicly
any forward-looking statement, whether as a result of new information, future events or otherwise. All written and oral forward-looking
statements attributable to the Company or to persons acting on the Company's behalf are expressly qualified in their entirety by the
cautionary statements referred to above and contained elsewhere in the Presentation.
2
Introduction
• Good underlying portfolio performance in
the year
• Reduction of commitments
• Well positioned for a successful
realisation
3
2011 Highlights
• NAV unchanged at 90p per share
• Unquoted portfolio performed
well; offset by adverse market
movement on quoted
• Successful secondary sale of fund
positions
• Outstanding commitments
reduced
• Net cash £30.6m at 31 December
2011 (net debt £5.0m 31
December 2010)
Key metrics
2011
2010
NAV (p/share)
90p
90p
Realised Gains
£6.4m
£(1.0)m
Unrealised
Gains/(losses)
Unquoted and
funds
£15.8m
£20.7m
Quoted
£(13.5)m £14.0m
Outstanding
Commitments
£18.9m
£40.7m
4
Portfolio movements during 2011
£million
253
27.5
14.0
6.3
2.3
14.7
13.1
218.5
Opening
value
Quoted
sales
Funds
secondary
Fund
dist &
other
Fund
calls
Other
additions
Closing
value
Fair
value
increase
(net)
5
Portfolio analysis ‐ £ million
As
reported
Realisation plan
Quoted
Direct
‐
24.2
‐
‐
‐
47.8
SFEP
41.5
‐
2.3
24.2
96%
47.8
22%
43.8
100%
Co‐invests
Funds
‐
‐
39.2
39.2
88%
63.5
‐
‐
63.5
49%
Funds
Quoted
Unquoted
Total
US dollar
Cash
Net working
capital
NAV
105.0
24.2
89.3
218.5
65%
30.6
(4.1)
245
6
Quoted Investments
YE stock price
Year end book value, £m
2011 IRR
$14.64
Weatherford
$1.38
Chyron
Others (6)
2.5
2.3
19.4
(36)%
(36)%
Total quoted investments at the end of 2011 were £24.2 million
7
Direct Investments
Year end book value, £m
2011 IRR
Updata
Apogee
Nationwide
12.7
11.5
10.5
Entuity
4.0
Others (4)
9.1
22%
33%
9%
(18)%
Total direct investments at the end of 2011 were £47.8m
8
San Francisco Equity Partners
Year end book value, £m
2011 IRR
Method
18.9
7%
Yes To
8.3
Penguin
Luxury Link
5.5
5.1
Others (3)
6.0
72%
(23)%
0%
Total SFEP investments at the end of 2011 were £43.8m
9
Co‐investments
Year end book value, £m
2011 IRR
HealthTech
23.9
89 %
Rave
7.4
Agilisys
2.5
Pims Group
1.6
Others (6)
3.8
0 %
25 %
0%
Total Co‐investments at the end of 2011 were £39.2m
10
Funds
General Partners
Year end book value, £m
2011 IRR
Brockton
BVI
Voreda Capital
Primus Capital
Amadeus
Weber Capital
Brynwood
Opus Capital
Others (9)
15.8
10.9
13.2
5.3
4.7
3.8
3.4
3.2
3.2
15%
15%
0%
32%
22%
(6)%
15%
4%
The total Funds (excluding SFEP) investments at the end of 2011 were £63.5m
11
Well Positioned for Realisation
• Portfolio underlying performance
remains good
• Action taken to reduce cost base
• Active management of commitments
• Realisation plan in place
• Priorities agreed
• Aim for first distribution by end 2012
12