Authorised and regulated by the Financial Services Authority

Intermediate Capital Group PLCResults for the 6 months to 30 September 2008

25 November 2008

2

Financial Highlights

Loan book increased by 12% to £2,589m

Core income up 30% to £84.6m

Low level of gains on investments

£42.8m of net provisions

Interim dividend up 11% to 20.5p

33

Repayments

Repayments ( 3-month moving average )

-

200

400

600

800

1,000

1,200

1,400

Jun-00 Sep-00 Dec-00 Mar -01 Jun-01 Sep-01 Dec-01 Mar -02 Jun-02 Sep-02 Dec-02 Mar -03 Jun-03 Sep-03 Dec-03 Mar -04 Jun-04 Sep-04 Dec-04 Mar -05 Jun-05 Sep-05 Dec-05 Mar -06 Jun-06 Sep-06 Dec-06 Mar -07 Jun-07 Sep-07 Dec-07 Mar -08 Jun-08 Sep-08

Repayments

£m

44

New Lending vs Repayments

New Lending vs Repayment ( 3-month moving average )

-

200

400

600

800

1,000

1,200

1,400

1,600

Jun-00 Sep-00 Dec-00 Mar -01 Jun-01 Sep-01 Dec-01 Mar -02 Jun-02 Sep-02 Dec-02 Mar -03 Jun-03 Sep-03 Dec-03 Mar -04 Jun-04 Sep-04 Dec-04 Mar -05 Jun-05 Sep-05 Dec-05 Mar -06 Jun-06 Sep-06 Dec-06 Mar -07 Jun-07 Sep-07 Dec-07 Mar -08 Jun-08 Sep-08

New Lending Repayments

£m£m

5

Operating Highlights

£559m arranged or provided in 11 transactions, pricing up by 200 bps on average in the first half

Portfolio is performing well but will not be immune to adverse economic environment

The balance sheet is strong

6

Market Background

Credit crisis worsened since September: no liquidity at all

Forced sale of loan portfoliosNationalisation of Banks

No senior debt for LBOs

Outstanding opportunity to invest in secondary assets

But

Economic environment deteriorating around the world

7

Evolution of European Institutional Investor Market

Source: S&P

3

14

53

115

22

99

7

18

33

0

50

100

150

1999 2001 2003 2005 3Q070%

25%

50%

75%

1999 2000 2001 2002 2003 2004 2005 2006 3Q 07

European Banks Institutional Investors

Non-European BanksSecurities Firms

Number of loan fund managers Share of primary loan market

Source: S&P

8

European LBO Market

164.5

12.719.2

35.139.9

58.8

92.9

82.9

69.170.0

79.3

110.0

152.3

71.6

–

20

40

60

80

100

120

140

160

180

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 9m08

Source: Initiative Europe, S&P

Reflects total sources of funding of initial or secondary buyout by a private equity firm (excludes recaps, refinancings, etc)

Leve

rage

d B

uyou

t Vol

ume

(€bn

)

9

Monitoring and managing our portfolio

Investing in the secondary market

Continuing to raise third party funds

Maintaining a strong balance sheet

Operational Priorities

10

Senior focus on the existing portfolio

At end September 50% above budget and 75% above last year

Portfolio diversified and defensive

Larger assets performing well

Some watch list assets reporting poor results since September

Monitoring and Managing our Portfolio

11

Portfolio diversity

*at 30 September 2008

Portfolio by geography* Portfolio by sector*

Benelux

Nordic

France

Germany

Spain

UK

Other Europe

Asia Pacific

North America

Business Services

Electronics

Financial Services

Health

Motors

Restaurants

Shipping & Transport

Mechanical Engineering

Publishing & Printing Drapery &

Stores

Consumer Products

Chemicals & Plastics

Food RetailingFood Manufacturing

Electrical

UitilitiesPharmaceuticals

Waste Management

Telephone Networks

Leisure

Hotels and Caterers

Agencies

Building Materials

12

Secondary market opportunities

Forced sellers have led to unseen pricing level

Now possible to buy a good quality portfolio of senior loans yielding more than 20%

ICG ideally placed to manage these assets

Recovery Fund will be primary vehicle

13

Leveraged Loan Prices

Source: ELLI, S&P

60.00

70.00

80.00

90.00

100.00

May-02

Aug-02

Nov-02

Feb-03

May-03

Aug-03

Nov-03

Feb-04

May-04

Aug-04

Nov-04

Feb-05

May-05

Aug-05

Nov-05

Feb-06

May-06

Aug-06

Nov-06

Feb-07M

ay-07

Aug-07

Nov-07

Feb-08

May-08

Aug-08

Nov-08

14

Examples of Secondary Loan Asset Pricing

Company Margin Offer 3 Yr Yield 4 Yr Yield 5 Yr Yield 6 Yr Yield YTMIsta 200.0 61.00 26.35% 21.45% 18.62% 16.77% 15.48%UPC 200.0 69.00 20.89% 17.35% 15.28% 13.93% 13.93%Amadeus 237.5 56.00 30.87% 24.96% 21.57% 19.37% 19.37%NTL 362.5 75.50 19.05% 16.43% 14.88% 13.87% 13.87%Nycomed 275.0 59.00 28.97% 23.67% 20.62% 18.63% 17.25%Pages Jaunes 175.0 58.50 27.90% 22.52% 19.42% 17.40% 15.99%TDF 212.5 62.00 25.79% 21.07% 18.34% 16.56% 15.32%Eircom 200.0 75.00 17.35% 14.67% 13.09% 12.06% 11.33%Gala 325.0 53.00 34.90% 28.30% 24.53% 22.09% 22.09%PHS 275.0 60.00 28.19% 23.08% 20.13% 18.22% 18.22%TDC 200.0 86.00 11.78% 10.43% 9.63% 9.10% 8.73%Wind 287.5 84.00 13.70% 12.13% 11.20% 10.58% 10.58%ISS 200.0 68.00 21.53% 17.83% 15.67% 14.26% 15.67%Formula 1 237.5 70.00 20.76% 17.36% 15.37% 14.08% 15.37%Smurfit 250.0 66.00 23.50% 19.47% 17.13% 15.60% 15.60%Yell 300.0 68.00 22.84% 19.13% 16.96% 15.55% 16.96%Prosieben 187.5 51.00 34.57% 27.54% 23.51% 20.92% 17.78%Numericable 250.0 56.00 31.06% 25.15% 21.75% 19.56% 18.02%United Biscuits 250.0 68.00 22.18% 18.48% 16.32% 14.90% 14.90%KDG 175.0 87.00 11.04% 9.80% 9.07% 8.58% 9.07%Springer 262.5 71.00 20.46% 17.21% 15.31% 14.07% 17.21%Ineos 275.0 49.00 38.01% 30.43% 26.12% 23.35% 23.35%Vivarte 225.0 43.00 43.87% 34.57% 29.32% 25.96% 21.94%YBR 275.0 71.00 20.62% 17.37% 15.47% 14.22% 14.22%Molnlycke 212.5 73.00 18.64% 15.68% 13.95% 12.81% 12.01%

242.0 65.60 24.59% 20.24% 17.73% 16.10% 15.77%

15

Growing source of funding for ICG transactions

Fund raising on track despite challenging environment

Asia Pacific II

Minority Partners Fund

Recovery fund

Mezzanine Fund management fees up 14% at £12.9m

Awful fund raising environment

Mezzanine Fund Management

1616

Fund Management Fee Income

0

5

10

15

20

25

30

35

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

H108

H208

H109

CFM

Mezzanine

£m

17

Credit Fund Management

Cash flow CDOs continue to perform well

Eurocredit Opportunities remains within covenants but is structurally weakened

Fee income up 18% to £11.1m

No new CDOs in current environment but increased institutional interest in credit

18

Adverse economic conditions

Resulting in increased default rates across private equity portfolios requiring extra vigilance

Investing into the secondary market where we see outstanding value

Maintaining strong balance sheet and liquidity in our third party funds

Outlook

1919

Business & Financial Review

2020

Highlights for the 6 Months to 30 September 2008

Strong underlying earnings

Portfolio performing well overall but increasing provisions

Low level of realisations

Robust balance sheet

2121

Core Income

0

20

40

60

80

100

120

140

160

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 H1 08 H2 08 H1 09

£m

2222

Pre-tax Profits

0

50

100

150

200

250

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 H1 08 H2 08 H1 09

Note: Excludes fair value movements on derivatives held for hedging purposes from 2005 onwards

£m

2323

Core Income

Core Income up 30% to £84.6m

65

85

42

13

81

0

20

40

60

80

100

120

Sep-07 Interest income

Interestexpense

Fee income Costs Sep-08

£m

24

Breakdown of Operating Costs

0

10

20

30

40

50

H1 07 H2 07 H1 08 H2 08 H1 09

MTIS in CoreIncome

Other Admin

Staff Costs

£m

2525

Pre-tax Profit

Pre-tax profit at £39.8m, £57.8m excluding fair value movement

142

19

77

33

4040

16

27

0

50

100

150

200

Sep-07 Core Income Capital Gains MTIS Provisions Derivatives Sep-08

£m

26

Breakdown of Provisions

-40

-20

0

20

40

60

80

FY 06 FY 07 FY 08 H1 09

Mezz Recoveries CDO

£mGross Provisions/ closing Loan Book (ex CDO)

FY 06: 2.06%

FY 07: 2.20 %

FY 08: 2.21%

H1 09: 4.22% annualised

27

0.0%

10.0%

20.0%

30.0%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 9m2008

Vintage Year

Annual Default RateAnnual Loss Rate

27

Default Analysis – ICG Portfolio

Recovery rate of 60% since inception

2828

Loan and Investment Portfolio

Loan and investment portfolio up 12% to £2.6bn£m

2,545 2,549 2,579 2,589

139

2,306

70

7110

31268 31

0

500

1,000

1,500

2,000

2,500

3,000

Mar-08

Interes

t acc

rued

Interes

t rec

eived

New lo

ans

Repay

ments

Provis

ions

Others FX

Sep-08

2929

Investment Activity for the 6 Months to 30 September 2008

Investment Country Business Equity Sponsor Currency Mcurrency

Asia Pacific

Veda Australia Consumer and commercial credit reporting PEP/ Merrill Lynch AUD 15*

Europe

Biffa UK Waste management Montagu/GIP GBP 125

Casa Reha Germany Care homes Hg Capital EUR 45

CEPL France Logistics services Arcapita EUR 50

Labco France Private clinical or routine laboratories 3i EUR 80

Löwenplay Germany Gaming arcade Axa PE EUR 60

Sicurglobal Italy Security services Stirling Square EUR 48

Veinsur Spain Truck distribution and maintenance services Inversiones Ibersuizas EUR 36

North America

AST USA Share registry services Pacific Equity Partners USD 137

Behavioral Interventions USA Correctional products and services AEA Investors USD 103

Hudson USA Air cooled heat exchangers and axial flow fans Riverstone USD 53

*A further AUD165m was provided to Veda in early October and will be included in the figures for the second half

3030

Balance Sheet

148%184%Gearing ratios

2,2702,572

£2,379m£2,340mDebt facilities

1,3741,684Borrowings

896888Shareholders’ funds

2,2702,572

(36)(17)Net current liabilities

2,3062,589Loans and investments

31 March 2008

£m

30 September 2008

£m

3131

Funding

30 September 2008 £m

TERM

Existing bank facilities 1,032 3 - 4 yrs

New bank facility

Private placement

Securitisation

450

465

393

2.5 yrs

0 - 10 yrs

16 yrs

2,340 5.4 years*

Utilised

Headroom

1,684

656

* weighted average life

3232

Repayment Schedule

0

500

1,000

1,500

2,000

2,500

2009 2010 2011 2012 2013 2014 2020

£450m Revolver Securitisation Private Placements

£m

…

3333

High cash outflows in H1 09 related to FY 08 realisationsMTIS on capital gains of £27mMTIS on realised rolled up interest of £11m

Tax outflow also high because of FY 08 capital gains

H1 cash flow not reflective of run rate

H1 09 Cash flow impacted by FY 08 Realisations

3434

Monitoring and managing our portfolio

Investing in the secondary market

Continuing to raise third party funds

Maintaining a strong balance sheet

Priorities

3535

Lower new investment rate

Stable interest income as higher cost of debt offsets loan book growth

Control of cost base. No significant further cost growth

Realisations and capital gains to remain low

Gross provisions for portfolio companies expected to increase further but limited visibility

Outlook for the Second Half

3636

Appendix

3737

Core Income

* Restated for Rights Issue completed in February 2008

H1 09£m

H2 08£m

H1 08£m

H1 09vs

H2 08

H1 09vs

H1 08

Income

Interest and dividend income 147.6 130.9 106.0 13% 39%Fee and other operating income 29.4 26.7 30.3 10% -3%

177.0 157.6 136.3 12% 30%

Less related expensesInterest payable and other related finance costs (65.9) (40.0) (25.4) n.a. n.a.

Add back: net losses on derivateves held for hedging purposes 18 (27.1) (9.1) n.a. n.a.

Administrative & operating expenses (44.5) (46.5) (36.5) -4% 22%

Core Income 84.6 71.1 65.3 19% 30%

Core Income per share* 66.6p 65.0p 58.2p 2% 15%

3838

Net Interest Income

H1 09£m

H2 08£m

H1 08£m

H1 09vs

H2 08

H1 09vs

H1 08

Interest Income 147.6 130.9 106.0 13% 39%

Interest Expenses (47.9) (40.0) (34.5) 20% 39%

Net Interest Income 99.7 90.9 71.5 10% 39%

3939

Fee Income

H1 09£m

H2 08£m

H1 08£m

H1 09vs

H2 08

H1 09vs

H1 08

Arrangement/underwriting fees 4.7 3.3 3.9 42% 21%

Mezzanine Fund Management fees 13.6 14.2 17.0 -4% -20%

Credit Fund Management fees 11.1 9.2 9.4 21% 18%

29.4 26.7 30.3 10% -3%

4040

Operating Expenses

* Charge relates to accrual of rolled up interest

H1 09£m

H2 08£m

H1 08£m

H1 09vs

H2 08

H1 09vs

H1 08

Staff Costs 23.4 23.5 19.7 0% 19%

Other admin costs 8.9 11.1 8.4 -20% 6%

32.3 34.6 28.1 -7% 15%

Medium Term Incentive scheme* 12.2 11.9 8.4 3% 45%

Operating Expenses 44.5 46.5 36.5 -4% 22%

Expenses as % of core income 52.6% 65.4% 55.9%

4141

Gains on Investments

H1 09£m

H2 08£m

H1 08£m

H1 09vs

H2 08

H1 09vs

H1 08

Realised gains on investments 18.5 43.3 90.6 -57% -80%

Unrealised gains on investments 1.4 (5.2) 6.5 -127% -78%

Cost of medium term incentive scheme (3.9) (12.1) (20.2) -68% -81%

Net gains on investments 16.0 26.0 76.9 -38% -79%

4242

Impairments

H1 09£m

H2 08£m

H1 08£m

H1 09vs

H2 08

H1 09vs

H1 08

Mezzanine and equity investment

Gross Impairment 54.2 33.8 16.4 60% 230%

Recoveries (25.6) (4.2) (10.6) n.a. n.a.

Equity in ICG - managed CDO's

Gross Impairment 14.2 7.1 3.5 100% 306%

Recoveries - - -

Impairments net of write backs 42.8 36.7 9.3 17% 360%

4343

Pre-tax profits

* Excluding impact of fair value movements of derivatives held for hedging purposes

H1 09£m

H2 08£m

H1 08£m

H1 09vs

H2 08

H1 09vs

H1 08

Interest and dividend income 147.6 130.9 106.0 13% 39%

Gains on investments 19.9 38.1 97.1 -48% -80%

Fee and other operating income 29.4 26.7 30.3 10% -3%

196.9 195.7 233.4 1% -16%

Interest payable and other related financing costs (47.9) (40.0) (34.5) 20% 39%

Impairment of assets (42.8) (36.7) (9.3) 17% 360%

Administrative expenses (48.4) (58.6) (56.7) -17% -15%

Profit before tax* 57.8 60.4 132.9 -4% -57%

Fair value movements (18.0) 27.1 9.1 n.a. n.a.

Profit before tax 39.8 87.5 142.0 -55% -72%

4444

Pre-tax Profits, Earnings per Share & Dividends

* Excluding impact of fair value movements of derivatives held for hedging purposes

** Adjusted for Rights Issue completed in February 2008

H1 09£m

H2 08£m

H1 08£m

H1 09vs

H2 08

H1 09vs

H1 08

Pre-tax profit* £57.8m £60.4m £132.9m -4% -57%

Pre-tax profit £39.8m £87.5m £142.0m -55% -72%

Earning per share** 29.8p 87.7p 125.7p 66% -76%

Dividend per share** 20.5 45.5 18.5 n.a. 11%

4545

Blended Mezzanine Spread – New ICG Investments

* Exclusive of equity co-investment

341 313 347 359 373 345 368 316 346 343

206 199

356 338399 443 455 603 580 608

665 766

594462

511 441 310

298

91 115

L+0

L+400

L+800

L+1,200

L+1,600

Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Sep-08

Cash Spread PIK Spread Equity Kicker

1,2121,278 1,297

1,159

1,2831,229

1,1331,011

`

1,041

1,249

4646

Leverage & Deal Size at Funding

Verity to supply on Monday afternoon

(weighted by ICG Amount)

2.5x

3.5x

4.5x

5.5x

6.5x

7.5x

8.5x

9.5x

10.5x

11.5x

2000* 2001* 2002* 2003* 2004* 2005* 2006* 2007* 9m 2008

Tota

l Deb

t / E

BIT

0

100

200

300

400

500

600

700

800

Dea

l Siz

e £

m

Average Deal Size Ttl Debt / EBIT

* Calendar Year

4747

Portfolio diversity

Senior Mezzanine

Equity in ICG managed CDOs

Equity Investments

Junior Mezzanine

Investment assets by type at 30 September 2008

81%

18%1%

67%

17%

15%

4848Final Slide: ICG Disclaimer

The materials being provided to you are intended only for informational purposes and convenient reference. This information is not intended to provide, and should not be relied upon, for accounting, legal or tax advice or investment recommendations. You should consult your tax, legal, accounting or other advisors about the issues discussed herein. The descriptions contained herein are summaries and are not intended to be complete.These materials are not intended as an offer or solicitation with respect to the purchase or sale of any security and may not be relied upon in evaluating the merits of investing in the securities. These materials are not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Neither Intermediate Capital Group PLC (“ICG”) or any of its affiliates makes any representation or warranty,express or implied as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation whether as to past or future performance.Distribution of this material to any person other than the person to whom this information was originally delivered and to such person’s advisors is unauthorised and any reproduction of these materials, in whole or in part, or the disclosure of any of their contents, without the prior consent of ICG or its affiliates is prohibited.This communication is limited to and directed to those persons invited to the presentation. It is therefore only directed at intermediate customers and market counterparties, as defined by Financial Services Authority. Any other persons should not seek to rely upon the information contained therein. Collective investment schemes referred to herein are not regulated for the purposes of the UK’s Financial Services and Markets Act 2000 and are not available to members of the general public. ICG is authorised and regulated in the United Kingdom by the Financial Services Authority. Intermediate Capital Managers Limited is a wholly-owned subsidiary of ICG and is also authorised and regulated in the United Kingdom by the Financial Services Authority.