Results for the year to 31 March 2026

3i Group PLC

14 May 2026

 

This announcement contains inside information for the purposes of Article 7 of the UK version of the EU Market Abuse Regulation (596/2014). Upon the publication of this announcement, this information is considered to be in the public domain.

14 May 2026

3i Group plc announces results for the year

to 31 March 2026 and share buyback programme

3i delivered another strong result in FY2026

• FY2026 total return of £5,304 million or 22% on opening shareholders' funds (2025: £5,049 million, 25%) and NAV per share of 3,030 pence at 31 March 2026 (31 March 2025: 2,542 pence), including a 77 pence per share gain on foreign exchange translation.

• Our Private Equity business delivered a gross investment return ("GIR") of £5,303 million or 23% (2025: £5,113 million, 26%). Action remained the significant driver of the Group's financial performance in FY2026. Royal Sanders delivered another year of robust growth. Across our remaining portfolio, we are seeing a number of standout performers in our consumer and private label sector, while our other sectors remain resilient. The realisations of MPM and MAIT during the year generated realised proceeds of £542 million and money multiples ahead of our return target of 2x.

• Action generated a GIR of £4,510 million, or 25%, on its opening value. During the year, we also recognised realised proceeds and dividend distributions from Action to 3i of £1,190 million. In 2025, Action generated annual net sales growth of 16%, like-for-like ("LFL") sales growth of 4.9% and EBITDA growth of 14%. In the first three periods of 2026 (P3 2026 which ended on 29 March 2026), Action's net sales were €4,010 million (first three periods of 2025: €3,521 million), operating EBITDA of €498 million (first three periods of 2025: €464 million) and LFL sales growth of 3.6%.

• At the end of week 19 (10 May 2026), Action's year to date LFL sales growth was 2.4%, against a 6.8% comparable LFL over the same period last year. While FMCG categories are trading well, seasonal categories have underperformed in the period, affected by cooler weather in recent weeks against high comparables last year. Continued consumer caution in France and lower traffic in Germany since the deterioration of the situation in the Middle East at the end of March, resulted in flat year to date LFL performance in those countries. Trading in the Netherlands, Belgium and Southern Europe is in line with or ahead of expectations. At 10 May 2026, Action's cash balance was €925 million. 69 new stores have been opened in the year to date.

• Our Infrastructure business generated a GIR of £106 million, or 7% (2025: £52 million, 3%). During the year, 3iN announced the realisation of its largest asset TCR, for proceeds of €1.1 billion, resulting in a money multiple of 3.6x.

• In total, across the Group, we received £1.9 billion of cash proceeds from the portfolio. We ended the year with liquidity of £1,864 million, net debt of £547 million and gearing of 2%.

• Total dividend of 84.5 pence per share for FY2026, with a second FY2026 dividend of 48.0 pence per share to be paid in July 2026 subject to shareholder approval.

• Announcing a buyback programme of up to £750 million, aimed at reducing share capital, intended for completion before 31 December 2026

Simon Borrows, 3i's Chief Executive, commented:

"FY2026 was another good year for 3i with strong contributions from each of Action, the broader Private Equity portfolio and Infrastructure. The market environment remains complex with heightened geopolitical risk from the unresolved Middle East situation in particular. As a result, we expect to see an increase in inflation over the coming months.

Action continues to differentiate itself from its competitors with its continued focus on quality at the lowest price, which has made it a consumer favourite across Europe. Its growth story is underpinned by the combination of a powerful, multi-year, store roll-out programme into significant white space potential and compounding in LFL sales growth, with some of the best store economics we have seen in a retail concept. We are also seeing some good momentum across the rest of the Private Equity portfolio.

The announcement of our buyback programme reinforces our consistent focus on optimising value creation. In addition, our focus on active asset management across the portfolio has served us well over many years and gives us confidence in our ability to continue to compound returns for 3i shareholders both this year and over the long term."

Financial highlights

	Year to/as at 31 March 2026	Year to/as at 31 March 2025
Group
Total return	£5,304m	£5,049m
Operating expenses	£(135)m	£(150)m
Operating cash profit	£276m	£469m
Realised proceeds	£1,517m	£1,837m
Gross investment return	£5,464m	£5,211m
As a percentage of opening 3i portfolio value	21%	24%
Investment	£2,646m	£1,182m
Cash investment	£907m	£1,182m
Non-cash investment	£1,739m	-
3i portfolio value	£31,821m	£25,579m
Gross debt	£(1,211)m	£(1,194)m
Net debt	£(547)m	£(771)m
Gearing1	2%	3%
Liquidity	£1,864m	£1,323m
Net asset value	£30,887m	£24,611m
Diluted net asset value per ordinary share	3,030p	2,542p
Total dividend per share	84.5p	73.0p

1 Gearing is net debt as a percentage of net assets.

ENDS

For further information, please contact:

Silvia Santoro
Group Investor Relations Director	Tel: [phone]
Kathryn van der Kroft	Tel: [phone]
Communications Director

For further information regarding the announcement of 3i's annual results to 31 March 2026, including a live webcast of the results presentation at 9.00am, please visit www.3i.com.

Notes to editors

3i is a leading international investment manager focused on mid-market Private Equity and Infrastructure. Our core investment markets are Europe and North America. For further information, please visit: www.3i.com.

Notes to the announcement of the results

Note 1

All of the financial data in this announcement is taken from the Investment basis financial statements. The statutory accounts are prepared under IFRS for the year to 31 March 2026 and have not yet been delivered to the Registrar of Companies. The statutory accounts for the year to 31 March 2025 have been delivered to the Registrar of Companies. The auditor's reports on the statutory accounts for these years are unqualified and do not contain any matters to which the auditor drew attention by way of emphasis or any statements under section 498(2) or (3) of the Companies Act 2006. This announcement does not constitute statutory accounts.

Note 2

Copies of the Annual report and accounts 2026 will be posted to shareholders on or soon after Wednesday 28 May 2026.

Note 3

This announcement may contain statements about the future including certain statements about the future outlook for 3i Group plc and its subsidiaries ("3i"). These are not guarantees of future performance and will not be updated. Although we believe our expectations are based on reasonable assumptions, any statements about the future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

Note 4

Subject to shareholder approval, the proposed second dividend is expected to be paid on Friday 24 July 2026 to holders of ordinary shares on the register on Friday 19 June 2026. The ex-dividend date will be Thursday 18 June 2026.

Chair's statement

"FY2026 saw 3i deliver another year of consistent execution against its strategy, driving long-term growth for shareholders despite market volatility and geopolitical uncertainty"

FY2026 was another year of consistent execution against our strategy, with total return again exceeding 20% and net assets surpassing £30 billion. This outcome was driven by the continued compounding growth of Action and Royal Sanders, disciplined capital allocation into our best investments, and attractive returns from exits across our portfolio, against heightened geopolitical uncertainty and a continued challenging global economy.

Performance and market environment

In our financial year to 31 March 2026 ("FY2026"), the Group generated a total return of £5,304 million (2025: £5,049 million) or 22% (2025: 25%) on opening shareholders' funds. Net asset value ("NAV") increased to 3,030 pence per share (31 March 2025: 2,542 pence per share).

Global economic conditions during the year were largely shaped by geopolitical developments. In our principal markets, Europe experienced subdued growth while the US economy showed relative resilience. Against this backdrop, consumers remained highly value-conscious, with discretionary spending tightly managed.

In 2025, Action continued to deliver its winning formula and execute its expansion strategy impressively. It delivered another year of strong key operating metrics, which compare well against its most relevant peers, and achieved expansion into two new countries in a single year, alongside a record number of store openings across 14 countries. Action entered its fifteenth country in early 2026. Reflecting our long-term conviction, we increased our equity stake in Action meaningfully during the year, through a combination of cash and non-cash consideration, including the issuance of 3i Group plc shares, with total investment of £2.6 billion.

Action remained the principal driver of the Group's return in FY2026. Royal Sanders, another long-term holding, delivered a strong performance and continued to play a key role as a consolidator in the fragmented private label and contract manufacturing personal care market.

Across the broader portfolio, consumer and private label was our best performing sector in the year. We saw positive contributions from our healthcare, services and software and industrial sectors, with only a small number of assets delivering softer performance, largely reflecting asset-specific issues or end-market conditions. We continue to monitor rapid developments in artificial intelligence ("AI") closely, and our current direct exposure to the software sector is limited.

Our investment activity remained focused on further investment in several of the strongest assets within our portfolio. We continued our strong track record of delivering realisations at money multiples of over 2x our invested capital across both Private Equity and 3i Infrastructure plc ("3iN"), with the disposals of MPM, MAIT and TCR. These transactions highlight sustained demand for high-quality assets despite ongoing caution in the market.

Dividend

Our policy is to maintain or grow the dividend year on year, subject to the strength of our balance sheet and the outlook for investments and realisations. Cash generation remains strong, with cash inflows of £1.9 billion from our portfolio companies in FY2026.

In line with our policy and in recognition of the Group's financial performance, the Board recommends a second FY2026 dividend of 48.0 pence (2025: 42.5 pence), subject to shareholder approval, which will take the total dividend to 84.5 pence (2025: 73.0 pence). Based on the recommended dividend and the expected payment in July 2026, we will have paid a total of £5.4 billion to shareholders in dividends since our restructuring was announced in June 2012, growing our total dividend by a compound annual growth rate of 18% over this period.

Board and people

After serving as a non-executive Director for over nine years, Stephen Daintith will not be standing for re-election at the 2026 AGM and accordingly will retire from the Board at the end of that Meeting. I would like to thank him for his contribution to the Board and chairing of the Audit and Compliance Committee. I am pleased to confirm that Hemant Patel will become the next Chair of the Audit and Compliance Committee.

Sustainability

Managing sustainability-related risks, alongside the opportunities arising from embedding sustainability considerations into the long-term development of our portfolio companies, remains integral to protecting and enhancing portfolio value.

We welcomed the validation of our near‑term science‑based emissions reduction targets ("science-based targets") in FY2024 and note the strong progress achieved across all of them, including the early delivery of our portfolio engagement target. The Board continues to enhance its oversight of climate‑related risks to ensure these are systematically integrated into investment processes and portfolio management practices.

Outlook

The Group's performance in FY2026 was underpinned by our two high-quality long-term hold assets delivering consistent compounding growth and a broader portfolio that has, once again, demonstrated resilience through periods of uncertainty and disruption. This performance provides a strong foundation as we enter FY2027 against an increasingly uncertain geopolitical backdrop.

We are committed to allocating capital efficiently and in the best interests of shareholders to drive sustainable long-term returns. Our capital management approach incorporates our disciplined focus on new investments and realisations, further investment in existing portfolio companies when opportunities arise, and the active management of our own capital structure.

Despite the progress in the year, the Board is conscious that the second half of the year has been challenging for shareholders, as the share price has adjusted from the significant premium to NAV that had built up, particularly over the preceding two years. Our focus is, as it has been since 2012, on building sustainable value in the portfolio as measured by growth in NAV and dividends per share, where the benefits of compounding returns accrue to shareholders over the long term. FY2026 was another year of consistent delivery of returns in excess of our 15% return target per annum, whilst the performance of the portfolio underpins our confidence for the future.

David Hutchison

Chair

13 May 2026

Chief Executive's statement

"In FY2026, we generated a total return on shareholders' funds of £5,304 million, or 22%, closing the year with a NAV per share of 3,030 pence. Over the last 14 years, we have grown NAV per share by 986%, demonstrating our continued success in compounding value through volatile market cycles and generating attractive long-term returns for our shareholders."

Against a backdrop of heightened geopolitical tensions and a lower growth environment, particularly in Europe, we delivered another strong performance in FY2026, underpinned by the continued compounding growth of our long-term hold assets, Action and Royal Sanders.

Action's strong track record and compelling growth journey continued in 2025. The business once again delivered year-on-year top line growth and increased profitability, while accelerating its international store rollout, opening a record number of new stores and, for the first time, entering two new countries in a single year.

Expansion momentum continued into early 2026 with entry into its fifteenth country and the business has significant further international expansion potential. We continue to have strong conviction in Action, reflected in the allocation of significant additional 3i capital to increase our stake during the year.

Royal Sanders is also experiencing robust momentum, achieving another year of top-line growth and continuing to execute its value-accretive buy-and-build strategy.

Across our remaining portfolio, we are seeing a number of standout performers in our consumer and private label sector, while our other sectors remain resilient. Our realisation activity continues to demonstrate our ability to crystallise strong outcomes for shareholders in cautious markets, with three exits from Private Equity and 3iN at money multiples materially above our 2x target.

We have held many of our portfolio companies over a number of years through disruption and uncertainty, including the pandemic and Russia's invasion of Ukraine. Throughout these periods, our portfolios have demonstrated resilience, and the experience we have gained through these times, and the active management approach we have taken, position us well to assess and respond quickly to any potential impacts from recent geopolitical developments. Across our portfolio, we have limited direct exposure to the Middle East through either portfolio company operations or revenue generation. However, we continue to monitor both direct and indirect impacts, particularly in the event of an extended period of disruption.

Action remained the significant driver of the Group's financial performance in FY2026. In 2025, Action delivered another year of impressive earnings growth despite a more cautious consumer backdrop in France, its largest market. Store expansion continued at pace, with the business achieving several key rollout milestones. International store rollout is central to Action's long-term growth strategy, and it has significant white space potential remaining across Europe. Following an in-depth market study, the business has announced a strategic decision to enter the US in late 2027 or early 2028.

Private Equity performance

In the year to 31 March 2026, our Private Equity portfolio, including Action, generated a GIR of £5,303 million, or 23% on opening value (2025: £5,113 million or 26%). In the last 12 months ("LTM") to 31 December 2025, 96% of our portfolio companies by value grew earnings.

Long-term hold portfolio companies

Action

Action generated a GIR of £4,510 million, or 25%, on its opening value, as it delivered another year of strong performance.

Action's winning formula and customer proposition of offering good-quality products at the lowest prices continues to prove highly compelling to its customers, reflected in a record-breaking year in 2025 for customer visits, with an average of 21.6 million each week.

Action 2025 financial performance

In the 52 weeks to 28 December 2025, Action generated net sales of €16,000 million (2024: €13,781 million), representing growth of 16% year-on-year. Like-for-like ("LFL") sales growth was 4.9% (2024: 10.3%), driven primarily by growth in transaction volumes.

Action saw LFL sales growth across all of its markets in 2025, with particularly strong performance in its Central and Eastern and Southern European markets. In the Netherlands, Action's most mature market, it delivered an above-average LFL performance, proving the strength and relevance of its formula in an established market. However, the overall LFL performance for the year was moderated by relatively weaker trading in France, Action's largest market. Excluding France, LFL sales growth for Action was 7.2% in 2025. In France, LFL sales growth was 1.3% reflecting a number of headwinds, including underlying consumer caution and increased competition and promotional intensity across the retail sector.

Action's operating EBITDA over the same period was €2,367 million (2024: €2,076 million), 14% ahead of 2024. The operating EBITDA margin for the year was 14.8%. After adding back the one-off payment of €26 million made to staff during the year to celebrate Action's 3,000th store, the EBITDA margin was 15.0%.

Action store expansion and distribution network

Action once again delivered record store expansion in 2025, adding 384 net new stores and surpassing 3,000 locations. As at 28 December 2025, the business operated 3,302 stores across 14 European countries. The year also marked Action's entry into Switzerland and Romania, its first expansion into two new markets within a single year. Performance in both geographies has been encouraging and reinforces our confidence in the continued scalability of the format across Europe. Since entering Italy in 2021 and Spain in 2022, Action has opened more than 320 stores in the two countries combined. In March 2026, Action opened its first store in Croatia, its fifteenth country. In the first three periods of 2026 (P3 2026 ending 29 March 2026), Action added a further 33 net new stores, meaning the business had 3,335 stores across 15 countries at that date.

Action's estimate of additional white space potential in existing and identified in-scope European countries is c.4,650 stores as at the end of 2025, including the addition of Croatia and Slovenia as new countries in 2026 and Bulgaria in 2027.

Action continued to strengthen its supply chain infrastructure during the year, opening three new distribution centres ("DCs") in Wallersdorf (Germany), Dunikowo (Poland) and Novara (Italy). As a result, the total DC network now stands at 18 across Europe, with plans to open a further three DCs in 2026 in France, Italy and Spain, to facilitate its further store growth.

3i Group transaction activity with Action

During the year, we continued to increase our stake in Action, completing a number of separate transactions. In September 2025 and January 2026, we acquired approximately 5.1% of Action's equity from GIC in exchange for the issuance of new ordinary shares in 3i Group plc, representing an equivalent consideration of £1.7 billion.

In October 2025, following a further successful refinancing and capital restructuring at Action which returned £944 million of gross proceeds to 3i, we redeployed £755 million to acquire an additional 2.2% stake from existing LPs. In addition, we took the opportunity to acquire additional stakes in Action investing a further £72 million during the year.

As a result of all of these transactions, we increased our equity stake in Action from 57.9% to 65.4%.

In addition to the refinancing, Action also repriced €3.1 billion of its existing term-loan debt, extending the maturity of a portion of the debt and generating an annual interest cost saving of €14 million.

Action continues to generate strong cashflow, achieving an 83% cash conversion of EBITDA in 2025. The business made a dividend distribution to all shareholders in December 2025, returning £246 million to 3i. In total, 3i received

£1.2 billion in cash from Action in FY2026. Action had a cash balance of €751 million as of 29 March 2026 and a net debt to run-rate EBITDA ratio of 2.8x. In May 2026, Action approved a further dividend distribution to all shareholders, expected to return c.£255 million to 3i.

3i Group valuation of Action

At 31 March 2026, we valued our 65.4% stake in Action at £23,743 million. Our approach to the valuation of Action remains consistent. The valuation reflects the continued strong growth in Action's LTM run-rate EBITDA, its low leverage and an unchanged LTM run-rate EBITDA valuation multiple of 18.5x, net of the liquidity discount. Further detail on the Action run-rate EBITDA methodology can be found in the Business review section of our Annual report and accounts 2026. We continue to benchmark our long-term, through-the-cycle view on Action's multiple against a broad peer group of discounters, with a higher weighting towards the top-quartile subset of North American value-for-money retailers, noting that Action's operating KPIs continue to compare strongly against its peer group.

In addition, the transactions we completed in Action during the year have involved third-party investors, including a number of existing LPs in the 2020 Co-Investment Programme, both selling and buying stakes in Action, providing validation of our valuation methodology and our assessment of Action's fair value. Each of these transactions were executed at the previous published valuation at that date.

Action financial performance in the first three periods of 2026

In the first three periods of 2026, Action delivered net sales of €4,010 million and operating EBITDA of €498 million, 14% and 7% ahead of the same period last year. LFL sales growth was 3.6%, impacted by poor weather conditions in Northern Europe in Q1. The operating EBITDA margin was 12.4%. Action's trading is typically weighted to the second half of its financial year, with most new store openings taking place in the final quarter.

Royal Sanders

Royal Sanders continued to strengthen its position as a leading European personal care platform in 2025, delivering another year of robust growth, supported by above market performance from its key customers. A core pillar of our investment thesis in Royal Sanders remains its role as a consolidator in the personal care market, with nine acquisitions completed under our ownership, including the acquisition of Vendoleo in December 2025. These acquisitions have been highly value‑accretive and have consistently exceeded expectations, with a strong pipeline of further potential opportunities identified for the coming years. We made a further investment of £56 million during the year, reflecting our continued confidence in the long‑term potential of the business.

Private Equity portfolio companies

Consumer and private label portfolio companies

Audley Travel delivered a strong result in 2025, supported by demand for premium tailor‑made travel, despite a more cautious backdrop in some long‑haul markets. The business benefited from operational improvements and will soon launch new technology initiatives aimed at enhancing both the customer journey and the overall service experience. Despite a largely flat online lighting market, Luqom's positive momentum continued in 2025, benefiting from a differentiated lighting product range and clear operational progress, which has enabled it to strengthen its market position. European Bakery Group ("EBG") demonstrated its resilience in an environment of rising input costs and evolving customer demand. It strengthened its footprint with the acquisition of a significant production site in Germany in March 2026, adding extra capacity, as well as new customer contracts. We recognised a dividend of £8 million from the business at the end of FY2026.

Healthcare portfolio companies

Cirtec Medical delivered a broadly stable performance in 2025, while managing a significant product transition to a customer's next-generation device, which we reflected in a modestly lower valuation at 31 March 2026. The business continues to build good momentum across new customer programmes and is well positioned in what remains a high‑growth end market.

With the bioprocessing market returning to growth and demand strengthening across key end markets, SaniSure ended 2025 with impressive momentum, following strong operational execution and commercial traction with major biopharmaceutical partners. This progress is reflected in a high‑quality, full pipeline across its product offering.

The ten23 health development lab in Basel and the fill‑finish lines in Visp continued to perform well in 2025, supported by strong demand for pre‑filled syringes, cartridges and other specialised injectable formats. Further production capacity is expected to come online across its second site in Visp in 2027. We invested a further £37 million in the year. The remaining vascular business of Q Holding, Q Medical Devices, saw sustained demand in the year, driven by customer launches.

Industrial portfolio companies

Tato's trading was broadly flat in 2025, with early momentum in the first quarter of the year easing as weaker volumes and more competitive markets impacted performance from the second quarter. Across its global footprint, solid growth in China, Mexico and India was offset by a weaker US outcome and flat trading in Europe. AES delivered a steady year with solid operational performance and continued strategic progress, with significant investment in factory capacity, robotics and new technology that will further improve its product and service offerings over the longer term. Both Tato and AES remain highly cash generative, and we received a total of £27 million of dividends in FY2026.

Services and software portfolio companies

Evernex saw strong commercial momentum, underpinned by good performance in its core third‑party maintenance services. The business also continued its buy‑and‑build strategy, completing the acquisitions of Sunrise Technologies in Morocco and Comptest in Poland. OMS Prüfservice outperformed the wider German testing market in 2025, with robust demand in its core testing segments, and returned £32 million of cash funding to 3i in just one year since our initial investment.

xSuite's move to a subscription model progressed well in 2025, with approximately two thirds of revenue now from recurring sales. Its core product, accounts payable invoice automation, is deeply rooted in customers' finance systems, which currently makes it less exposed to the AI‑driven pressure affecting the wider software market. We have nevertheless reflected the broader market de‑rating in our valuation of this asset. The recruitment market has continued to be muted. As a result, Wilson continues to experience challenging trading conditions.

Private Equity realisations

We completed two significant Private Equity realisations in FY2026, generating total proceeds of £542 million.

In September 2025, we completed the sale of MPM, generating proceeds of £395 million. Since our investment in December 2020, MPM more than doubled sales and EBITDA, materially expanded its international footprint and strengthened its omnichannel platform, with strong growth across pet specialty, food, drug, mass retail and online channels. The business also invested in brand development, product innovation and operational capability, further enhancing its position as a premium product. The transaction delivered an 18% uplift to the 31 March 2025 valuation, a 3.2x money multiple and a 28% IRR.

In November 2025, we completed the sale of MAIT, generating proceeds of £147 million. Since our investment in 2021, MAIT has delivered strong organic growth and completed 14 acquisitions, strengthening its position as a leading IT solutions provider to the manufacturing mid market. EBITDA more than doubled over the period, with a significant increase in recurring revenues. The transaction delivered a 34% uplift to the 31 March 2025 valuation, a 2.8x money multiple and a 28% IRR.

Infrastructure performance

In the year to 31 March 2026, our Infrastructure portfolio generated a GIR of £106 million, or 7% on the opening portfolio value (2025: £52 million, 3%) reflecting a 5% increase in 3iN's share price to 333 pence at 31 March 2026 (31 March 2025: 318 pence) and a good level of dividend income.

In the year to 31 March 2026, 3iN generated a total return on opening NAV of 8.5%, continuing its consistent track record of returns in line or above its 8-10% target range. This performance reflects the work of 3i's highly experienced infrastructure investment team and a strong infrastructure portfolio. The primary driver of 3iN's return was the announced realisation of TCR in the year. This realisation is expected to generate proceeds of €1.6 billion for 3iN and 3i managed funds. Of these total proceeds, 3iN will receive €1,140 million, representing a c.50% uplift on its 31 March 2025 value. TCR has been an excellent investment for 3iN, more than doubling the number of airports in which it operates and completing six bolt-on acquisitions to drive growth and expand into new markets. Upon completion, a portion of the TCR proceeds are expected to be recycled into 3iN's new investment of Lefdal Mine Datacenter, a high quality data centre campus on the west coast of Norway.

3iN's result was achieved notwithstanding a material write-down of DNS:NET, which has been adversely affected by the deterioration in the financing environment for fibre roll-out in Germany.

Our proprietary capital investment in Smarte Group (formerly Smarte Carte) saw resilient trading in 2025, as good performance across its international carts, lockers and ancillary airport service segments offset weaker US carts performance. Across the North American Infrastructure Fund, we received cash proceeds of £17 million, primarily from Regional Rail following its refinancing in March 2026.

Scandlines performance

Scandlines delivered a resilient result in FY2026, and our investment generated a GIR of £55 million, or 10% of opening portfolio value (2025: £46 million, 9%). Leisure performed well, offsetting softer freight volumes as demand

continues to be affected by the weakened economic situation in Germany and Scandinavia. Scandlines remains highly cash generative with strong cash conversion and we received dividends of £21 million in FY2026.

Sustainability

The climate agenda remains central to our sustainability activities, and we have made strong progress across all three of our science-based targets. We have achieved our FY2028 portfolio engagement target early. This target required us to use our influence to encourage our portfolio companies to set their own science-based targets. To date, ten portfolio companies across our portfolios (including 3iN portfolio companies), representing 52% of 3i's invested capital, have set approved science-based targets, with seven already demonstrating meaningful reductions in emissions.

We have also continued to strengthen our assessment of climate-related risks and opportunities within our investment and portfolio management processes, with particular emphasis this year on physical climate risks. This work, alongside our science-based targets, supports portfolio companies in implementing appropriate mitigation measures to address the wide range of operational, commercial and reputational risks associated with climate change. Beyond climate, we have maintained our focus on supporting portfolio companies in effectively identifying and managing their most material sustainability-related issues.

Charitable donations

We continue to support charities which relieve poverty, address homelessness, promote education and youth development and support elderly and disabled people. We donated £1.2 million across these initiatives as part of our ordinary charitable activities. Our portfolio companies also supported a variety of charities relevant to them and their operations, with donations totalling £6.7 million.

Balance sheet and foreign exchange movement

We ended FY2026 with net debt of £547 million and 2% gearing, after returning £765 million of cash dividends to shareholders in the year. During the year, we refinanced our existing £900 million revolving credit facility ("RCF") with a new five-year £1.2 billion facility at improved pricing. As a result, our liquidity at 31 March 2026, including our undrawn RCF, was £1,864 million. We remain disciplined on costs and generated an operating cash profit of £276 million in the year.

As a result of the two share issuance transactions in the year, we increased the number of 3i Group plc shares in issue by 51 million.

Due to sterling weakening against the euro and strengthening against the US dollar in the year, we recorded a total foreign exchange translation gain of £786 million (March 2025: £259 million loss), including a loss on foreign exchange hedging of £14 million (March 2025: £82 million gain).

On 14 May 2026, the Company announced that it will commence a share buyback programme of its ordinary shares of 73 19/22p each for up to a maximum aggregate consideration of £750 million, to be completed by no later than 31 December 2026.

3i share price volatility

For the first time since the pandemic, our share price declined materially in the second half of FY2026, after several years of very strong share price growth. In our view, this performance does not reflect the strong returns delivered during the year or the Company's long-term potential. We acknowledge that share price progression in public markets is not always linear, and our confidence in the long-term compounding potential of Action and the opportunities within the wider portfolio is undiminished. We believe we are well positioned to continue to deliver strong returns for our shareholders over time.

Outlook

I said last year that the market environment would remain complex with heightened geopolitical uncertainty. This turned out to be a good general description of the complex backdrop we operated in for FY2026 and continues to set the tone for the year to come, as the duration and indirect impacts from the Middle East situation remain uncertain.

FY2026 was another good year for 3i with strong contributions from each of Action, the broader Private Equity portfolio and Infrastructure. The market environment remains complex with heightened geopolitical risk from the unresolved Middle East situation in particular. As a result, we expect to see an increase in inflation over the coming months.

Action continues to differentiate itself from its competitors with its continued focus on quality at the lowest price, which has made it a consumer favourite across Europe. Its growth story is underpinned by the combination of a powerful, multi-year, store roll-out programme into significant white space potential and compounding in LFL sales growth, with some of the best store economics we have seen in a retail concept.

Across the rest of the portfolio we are also seeing some good momentum and, while we are cautious about the potential for an active M&A market, we will continue to focus on new investments where the balance of risk and return is in our favour.

The announcement of our buyback programme reinforces our consistent focus on optimising value creation. In addition, our focus on active asset management across the portfolio have served us well over many years and gives us confidence in our ability to continue to compound returns for 3i shareholders both this year and over the long term.

I would like to close by thanking the team at 3i and the teams in our portfolio companies for another year of strong performance.

Simon Borrows

Chief Executive
13 May 2026

Private Equity

At a glance

Gross investment return £5,303m or 23% (2025: £5,113m or 26%)

Investment £2,642m (2025: £1,177m)

Realised proceeds £1,502m (2025: £1,827m)

Portfolio dividend income £281m (2025: £450m)

Percentage of portfolio by value growing earnings 96%¹ (2025: 97%)

Portfolio value £29,707m (2025: £23,558m)

1 LTM adjusted earnings to 31 December 2025, includes 27 portfolio companies

We invest our proprietary capital in mid-market businesses headquartered in Europe and North America. Once invested, we work closely with our portfolio companies to deliver growth plans and aim to compound value from our best investments over the longer term.

Against ongoing geopolitical uncertainty, and a subdued macroeconomic backdrop across Europe and North America, our Private Equity portfolio delivered a GIR of £5,303 million, or 23%, on the opening portfolio value (2025: £5,113 million or 26%) in the year to 31 March 2026. This return included an £806 million foreign exchange translation gain, net of a loss from foreign exchange hedging.

Action remains the standout Private Equity performer, delivering another strong year, generating a GIR of £4,510 million, or 25% of its opening value. During the year, we increased our stake in Action, for cash and non-cash consideration. We also received significant proceeds from Action following another successful refinancing event. Royal Sanders delivered a further year of strong organic growth and continued its buy-and-build momentum, resulting in a significant contribution to our Private Equity return. We also invested additional capital into the business.

The broader portfolio saw important contributions from our other consumer and private label assets, which continue to demonstrate good momentum. Our healthcare portfolio delivered a largely positive performance, albeit the return was impacted by a significant product transition in its largest asset, while our industrial assets continued to generate cash dividends. Our services and software assets remained resilient despite wider market pressures, including the advancement of AI.

Investment activity in FY2026 was focused on further investment across the existing portfolio, alongside enhancing value through four bolt-on acquisitions. In addition to proceeds received from Action, we completed two portfolio company realisations, each achieving money multiples above our return target of 2x.

Table 1: Gross investment return for the year to 31 March

Investment basis	2026 £m	2025 £m
Realised profits over value on the disposal of investments	89	50
Unrealised profits on the revaluation of investments	4,080	4,803
Dividends	281	450
Interest income and fee income from investments	47	83
Foreign exchange on investments	811	(340)
Movement in fair value of derivatives	(5)	67
Gross investment return	5,303	5,113
Gross investment return as a % of opening portfolio value	23%	26%

Investment and realisation activity

Long-term hold portfolio companies

We allocated £2.6 billion of capital to invest into Action, consisting of non-cash consideration of £1.7 billion and £827 million of cash investment.

In September 2025 and January 2026, we acquired approximately 5.1% of Action's equity from GIC in exchange for the issuance of 51 million new ordinary shares in 3i Group plc. These transactions represented an equivalent non-cash consideration of £1.7 billion.

In October 2025, Action raised €1.6 billion of total incremental term loan debt across the US and European loan markets. Using the net proceeds from this debt raise alongside some of its cash, Action subsequently completed a €1.74 billion capital restructuring with a pro-rata redemption of shares, resulting in a distribution of £944 million of gross proceeds to 3i. Alongside a number of existing LPs in the 2020 Co-Investment Programme, 3i took the opportunity to acquire further shares in Action, reinvesting £755 million.

In addition, we took the opportunity to acquire additional stakes in Action investing a further £72 million during the year.

As a result of these transactions, in FY2026 we increased our equity stake in Action by 7.5% from 57.9% to 65.4%.

Following these transactions, our aggregate cost in Action has increased as a percentage of our total published investment portfolio value, reducing the available headroom under our existing investment policy limit for exposure to a single asset. In March 2026, the Board agreed to seek shareholder approval at the 2026 AGM to increase this limit, providing greater flexibility to support future investment decisions.

In December 2025, we completed a further investment of £56 million in Royal Sanders.

Private Equity portfolio

Across the remaining portfolio, we invested a further £37 million in ten23 health, as we continue to develop the contract development and manufacturing organisation ("CDMO") platform, and provided £6 million of capital to support Wilson through challenging trading conditions. OMS returned £32 million of funding within 12 months of our 2025 investment, including £1 million received as cash income.

Buy-and-build remains a key lever in executing the investment case across many of our portfolio companies. In FY2026, our portfolio companies completed four self-funded bolt-on acquisitions.

We completed two realisations in FY2026. In September 2025, we completed the sale of MPM, generating proceeds of £395 million, of which £13 million was interest income, achieving a profit of £54 million over its 31 March 2025 valuation. In November 2025, we completed the sale of MAIT, generating proceeds of £147 million and achieving a profit of £31 million over its 31 March 2025 valuation.

Across the remainder of the portfolio, we received proceeds of £20 million from Yanga following a refinancing and £8 million of deferred consideration from WP.

In total, in the year to 31 March 2026, we invested £2,642 million (2025: £1,177 million) in the Private Equity portfolio and generated total proceeds of £1,502 million (2025: £1,827 million).

	Investments		Proprietary capital investment £m
	Further investments
	Action
	Cash consideration		827
	Non-cash consideration1		1,739
	Royal Sanders		56
	ten23 health		37
	Other		14
	Private Equity gross investment		2,673
	Return of investment
	OMS Prüfservice		(31)
	Private Equity net investment		2,642

	Realisations	3i realised proceeds £m	Profit in the year2 £m
	Full realisations
	MPM	382	54
	MAIT	147	31
	Total realisations	529	85
	Capital restructuring & refinancing
	Action	944	-
	Yanga	20	-
	Total recapitalisation proceeds	964	-
	Deferred consideration and other proceeds	9	4
	Total Private Equity realisations	1,502	89

1 Action equity acquired in exchange for 3i Group plc shares.

2 Capital proceeds realised in the year less opening value, net of accrued interest.

Long-term hold portfolio companies:

Action

Action run-rate earnings

At 31 March 2026, Action was valued using its LTM run-rate EBITDA to the end of P3 2026 of €2,653 million1, which includes the usual adjustment to reflect stores opened in the last 12 months. Since 2013, we have included a run-rate adjustment in the calculation of Action's valuation earnings. This adjustment is to ensure we reflect the full-year profitability for each new store opened in the year. Action's performance and growth since the inclusion of this adjustment continues to validate this rationale. We apply our valuation multiple to LTM run-rate EBITDA.

Action valuation multiple

We continue to compare Action's performance and KPIs against a peer group of North American and European value-for-money retailers. Action's performance and KPIs in 2025, which capture the softer LFL sales growth in France, continues to compare favourably with its peers. This supports our post-discount valuation multiple of 18.5x, which is unchanged from the prior year. Action's continued growth meant that its valuation at 31 March 2025 translated to 16.2x (post-discount) the run-rate EBITDA achieved one year later. Based on the valuation at 31 March 2026, a 1.0x movement in Action's post-discount multiple would increase or decrease the valuation of 3i's investment by £1.5 billion.

Action net debt

Action ended P3 2026 with cash of €751 million, net debt of €7,461 million and a net debt to run-rate EBITDA ratio of 2.8x, after paying a dividend distribution in FY2026, of which 3i received £246 million.

Action valuation

At 31 March 2026, the valuation of our 65.4% stake in Action was £23,743 million (31 March 2025: 57.9%, £17,831 million) and we recognised unrealised profits of £3,544 million (March 2025: £4,324 million) from Action.

1 Includes a normalised one-off expense of €26 million, related principally to a payment to eligible Action employees in June 2025 to mark Action's 3,000th store opening.

Table 2: Action financial metrics

	Last 12 months to P12 2025	Last 12 periods to P12 2024
	(28 December 2025)	(29 December 2024)
Financial metrics	€m	€m
Net sales	16,000	13,781
LFL sales growth	4.9%	10.3%
Operating EBITDA	2,367	2,076
Operating EBITDA margin	14.8%	15.1%
Net new stores added	384	352
	First 3 periods to P3 2026	First 3 periods to P3 2025
	(29 March 2026)	(30 March 2025)
	€m	€m
Net sales	4,010	3,521
LFL sales growth	3.6%	6.2%
Operating EBITDA	498	464
Operating EBITDA margin	12.4%	13.2%
Net new stores added	33	49
	Last 12 periods to P3 2026	Last 12 periods to P3 2025
	(29 March 2026)	(30 March 2025)
	€m	€m
Run-rate EBITDA	2,653	2,328

Royal Sanders

Royal Sanders bolt-on activity in FY2026

Royal Sanders completed the self-funded acquisition of Vendoleo in FY2026, marking its ninth acquisition under our ownership. Vendoleo is the branded provider of the well-established value-for-money bath and shower brands Treaclemoon and Oriniq in Germany and Austria. Royal Sanders already owned and produced the Treaclemoon brand in all other regions, following its previous bolt-on acquisition in February 2025.

Royal Sanders performance and valuation

Royal Sanders was the largest contributor to Private Equity performance growth in FY2026 (excluding Action), generating value growth of £272 million. The business delivered strong organic growth across its key customers in 2025. All prior bolt-on acquisitions continue to be value-accretive and are outperforming their respective investment cases.

Private Equity performance

In FY2026, the Private Equity portfolio generated unrealised profits of £4,080 million (2025: £4,803 million). The performance of Action and Royal Sanders is discussed above. The following section outlines the performance of the remainder of the portfolio.

Consumer and private label portfolio companies

Audley Travel delivered another strong year‑on‑year bookings performance across both the UK and the US in 2025, although US demand softened slightly in the second half of the year due to geopolitical events. The business is continuing to invest in new technology to enhance the customer experience, positioning itself for future growth. Trading since the start of 2026 has been mixed, with recent developments in the Middle East weighing on UK travel sentiment after a good start to the year. Luqom saw strong trading momentum through 2025, and generated record revenue. This is an impressive result as Luqom has continued to gain market share in a largely flat online lighting market. The business is also benefiting from its AI‑driven product development, which identifies customer preferences and enables the creation of differentiated products that strengthen its competitive position.

European Bakery Group delivered a resilient outcome, despite pressure from higher personnel, logistics and ingredient costs. In March 2026, the Group acquired a significant production site in Germany from STK, broadening its production capabilities and customer base. This represents the fifth acquisition since 3i's investment.

Throughout 2025, BoConcept continued to optimise its franchise network and pull back from difficult markets. While this has weighed on overall volumes in the short term, its better performing stores across Japan and Southern Europe are seeing good momentum.

Mepal delivered good top-line growth across its key customers, with particularly strong increases from its e-commerce partners and major offline retailers. Konges Sløjd saw good sales performance from its biggest retail partners in 2025, and continued to gain traction internationally, especially in the US. A year since our initial investment, WaterWipes saw stable trading, with good growth in the UK and Europe, offsetting a challenging US market.

Healthcare portfolio companies

Our largest healthcare portfolio company, Cirtec Medical, saw good traction across its latest implantable and interventional programmes, helping to balance the planned transition of one of its older product lines to the next generation of the device. The transition creates a short‑term dip in performance, but it positions the business for stronger growth as the next generation of programmes scales. To reflect the near-term impact, we took a modest reduction in Cirtec's valuation at 31 March 2026.

The single-use bio-processing market recovered well through 2025, and SaniSure's business strengthened in line with this trend, with growing demand from major biopharmaceutical customers, who are increasingly choosing SaniSure's solutions for critical manufacturing steps. The company has a strong and high-quality pipeline, supported by the continued success of its new mixing and filling products.

Since our initial investment in 2021, we have supported the ten23 health platform development through innovation, a targeted buy-and-build strategy, and operational scaling, solidifying its position in the high-value biologics drug product CDMO space. The business continued to make positive progress in 2025. Its development services laboratory in Basel saw significantly increased bookings and growing engagement from major global pharmaceutical companies, while demand materially exceeded available capacity on its existing Visp fill‑finish line. Additional capacity is expected to come online with the delivery of the two commercial scale, high-volume lines in Visp, which are expected to become operational in 2027.

The vascular division of Q Medical Devices (Q Holding) showed good momentum, while Degania also saw growth from new launches.

Industrial portfolio companies

Tato and AES continue to demonstrate resilience and generate strong annual cash yields.

Tato delivered steady results in 2025, despite tough end markets. After a good start to the year, volumes softened as demand weakened, leading to lower selling prices from Q2 2025 onwards. Geographically, the company saw good growth in China, India and Mexico, with Brazil also modestly ahead, while the US underperformed expectations and Europe was broadly flat. In FY2026, we received £17 million of dividends from Tato.

AES maintained a steady performance in 2025, with good order volume growth, as demand remained resilient across its key end markets, particularly in energy and industrials. The business also strengthened its manufacturing capacity, with a significant upgrade to a UK factory, while also investing in robotics and automation, positioning it well for future growth. In FY2026, we received £10 million of dividends from AES.

Against a weak US industrial market, Dynatect performed resiliently in 2025.

Services and software portfolio companies

Evernex and OMS Prüfservice were the standout performers in this sector.

After a slow start to 2025, Evernex's commercial momentum picked up strongly through the remainder of the year, helped by solid renewal rates and new customer wins. The recent acquisitions of Sunrise Technologies in Morocco and Comptest in Poland strengthen its local presence and capabilities, and add to its broader buy‑and‑build strategy. Evernex has now completed nine acquisitions since our initial investment in 2019. OMS Prüfservice delivered strong growth in 2025, supported by rising demand for its Portable Appliance Testing and Installation & Machinery services. The business has largely outperformed the wider market since our acquisition in early 2025.

The broader software market has seen a significant derating, reflecting concerns on how AI could disrupt existing software tools. Our exposure to the software market is limited, at less than 1% of portfolio value, and mainly consists of xSuite, whose Accounts Payable invoice automation offering is currently relatively well protected against AI disruption. The business continued to make good progress in transitioning its revenue to subscriptions in 2025 and has started 2026 well. We have however, reflected the wider software sector derating in our valuation multiple for xSuite at 31 March 2026.

Over the last two and half years Wilson has operated through a very challenging recruitment market. We have reflected the impact of this on Wilson's performance through our valuation at 31 March 2026.

Overall Private Equity performance

96% of the portfolio by value grew LTM adjusted earnings in the year (31 March 2025: 97%). Table 4 below shows the earnings growth of our top 20 Private Equity investments.

Excluding Action, the Private Equity portfolio valued on an earnings basis generated £628 million (2025: £642 million) of value growth from performance increases, offsetting £76 million from performance decreases (2025: £138 million).

Multiple movements

When selecting multiples to value our portfolio companies, we take a long-term, through-the-cycle approach and consider a number of factors including recent performance, outlook and bolt-on activity, comparable recent market transactions and exit plans, and the performance of quoted comparable companies. At each reporting date, our valuation multiples are considered as part of a robust valuation process which includes independent challenge throughout, including from our external auditor, culminating in the quarterly Valuations Committee of the Board.

Since the start of our financial year in April 2025, global markets have experienced heightened volatility, reflecting ongoing geopolitical tensions, evolving trade policies, uncertainty around monetary policy, and the continued pace of technological disruption driven by accelerated AI adoption.

Against this backdrop, we have remained cautious in considering the valuation multiples we use for our portfolio companies. We increased the multiple for one of our portfolio companies in the year to reflect the good performance since acquisition, as well as market sentiment.

We adjusted multiples downwards across six assets, reflecting headwinds in their end-markets and, in some cases, wider market sector deratings. In total, we recognised a net £40 million unrealised value reduction from multiple movements in the year (March 2025: net nil movement). At 31 March 2026, our current weighted average post-discount multiple (excluding Action) was 13.0x (31 March 2025: 13.4x).

Table 3: Unrealised profits on the revaluation of Private Equity investments1 in the year to 31 March

	2026 £m	2025 £m
Earnings based valuations
Action performance	3,544	4,324
Performance increases (excluding Action)	628	642
Performance decreases (excluding Action)	(76)	(138)
Multiple increases	9	30
Multiple decreases	(49)	(30)
Other bases
Discounted cash flow	-	(19)
Other movements on unquoted investments	(10)	-
Quoted portfolio	34	(6)
Total	4,080	4,803

1 Further information on our valuation methodology, including definitions and rationale, is included in the Portfolio valuation - an explanation section in our Annual report and accounts 2026.

Table 4: Portfolio earnings growth of the top 20 Private Equity1 investments

		3i value at
	Number of	31 March 2026
	companies	£m
< 0%	4	1,156
0 - 9%	7	1,605
10 - 19%	6	25,414
20-29%	2	591
≥30%	1	425

1 Includes top 20 Private Equity companies by value excluding ten23 health. This represents 98% of the Private Equity portfolio by value (31 March 2025: 97%). Last 12 months' adjusted earnings to 31 December 2025 and Action based on LTM run-rate earnings to the end of P3 2026.

Leverage

Our Private Equity portfolio is funded with all-senior debt structures, with long-dated maturity profiles. As at 31 March 2026, 95% of portfolio company debt was repayable from 2028 to 2032.

Average leverage across the portfolio was 2.9x (31 March 2025: 2.9x). Excluding Action, leverage across the portfolio was 3.2x (31 March 2025: 3.5x).

Table 5 shows the ratio of net debt to adjusted earnings by portfolio value.

Table 5: Ratio of net debt to adjusted earnings1

		3i value
	Number of	at 31 March 2026
	companies	£m
<1x	4	344
1-2x	2	300
2-3x	6	24,802
3-4x	4	1,471
4-5x	2	408
>5x	3	985

1 This represents 95% of the Private Equity portfolio by value (31 March 2025: 93%). Quoted holdings, ten23 health and companies with net cash are excluded from the calculation. Net debt and adjusted earnings at 31 December 2025 and Action based on LTM run-rate earnings to the end of P3 2026.

Quoted portfolio

Basic-Fit is the only quoted investment in our Private Equity portfolio. In 2025 Basic-Fit's memberships increased by 13% year-on-year and it added 85 clubs to its network, excluding Clever-Fit clubs.

Our remaining 5.8% stake in Basic-Fit was valued at £97 million at 31 March 2026 (31 March 2025: £60 million for a 5.7% stake), following a 56% increase in its share price to €29.42 (31 March 2025: €18.86).

Sum of the parts

At 31 March 2026, ten23 health was valued on a sum-of-the-parts basis, using a discounted cash flow ("DCF") methodology for its operating lines.

Assets under management

The assets under management of the Private Equity portfolio, including third-party capital, increased to £36.8 billion (31 March 2025: £31.9 billion), primarily due to unrealised value gains on Action in the year.

Table 6: Private Equity assets by sector as at 31 March 2026

Sector	Number of companies	3i carrying value 2026 £m
Action (Consumer)	1	23,743
Consumer & Private Label	11	2,787
Healthcare	4	1,389
Industrial	6	947
Services & Software	12	841
Total	34	29,707

Infrastructure

At a glance

Gross investment return £106m or 7% (2025: £52m or 3%)

AUM £6.9bn (2025: £6.3bn)

Cash income £104m (2025: £106m)

We manage funds investing principally in mid-market economic infrastructure in Europe and North America. Infrastructure is a defensive asset class, that provides a good source of income and fund management fees for the Group, as well as long-term capital gains.

Our Infrastructure portfolio generated a GIR of £106 million, or 7% on the opening portfolio value (2025: £52 million, 3%). The return primarily reflects a modest increase in the share price of our quoted stake in 3iN, along with a strong level of dividend income.

The majority of 3iN's underlying portfolio continues to deliver growth and demonstrate good momentum. Towards the end of the year, 3iN announced an agreement to sell TCR. This transaction is expected to generate proceeds of €1.1 billion for 3iN, a portion of which will be deployed into 3iN's new investment in Lefdal Mine Datacenter. The c.50% uplift achieved on the TCR exit largely offsets the negative return on DNS:NET, which was written down following a material deterioration in lending appetite for German fibre rollout businesses.

Our US Infrastructure portfolio, including the North American Infrastructure Fund ("NAIF"), delivered a resilient performance for the year. There was also good buy-and-build activity, with three portfolio companies each completing a bolt-on acquisition during the year.

Table 7: Gross investment return for the year to 31 March

Investment basis	2026 £m	2025 £m
Realised profits over value on the disposal of investments	-	1
Unrealised profits on the revaluation of investments	65	17
Dividends	40	37
Interest and fee income from investments	11	8
Foreign exchange on investments	(10)	(11)
Gross investment return	106	52
Gross investment return as a % of opening portfolio value	7%	3%

3iN and European managed funds

3iN generated a total return on opening NAV of 8.5% for the year to 31 March 2026, within its total return target of 8% to 10% per annum, and delivered its dividend target of 13.45 pence per share, a 6.3% increase on last year.

This result reflects 3iN's high-quality portfolio, underpinned by exposure to long-term structural megatrends. The portfolio has little direct exposure to the Middle East and is positively correlated to inflation and longer-term energy prices.

TCR was the standout performer during the year, delivering strong results and winning a number of new contracts with both existing and new customers. At the end of the financial year, 3iN agreed to sell its stake in TCR which is expected to return total proceeds €1.6 billion for 3iN and 3i managed funds.

Of these total proceeds, 3iN is expected to receive €1,140 million. This represents an approximate 50% uplift on its opening valuation and, including prior distributions, a money multiple of 3.6x. The transaction is expected to complete in Q3 2026.

ESVAGT made good strategic progress during the year, with its fleet of Service Operation Vessels ("SOV") increasing by one third from nine to 12 vessels through the delivery of one newbuild and the acquisition of two operational vessels, supported by a 3iN further investment of €23 million. Results were impacted by a delay in the delivery of the newbuild SOV and weaker activity across the UK oil and gas market impacting their emergency rescue and response vessels.

Joulz completed two transformational acquisitions in the year, including the Italian and Dutch divisions of Centrica Business Solutions and a carve out of Engie's Belgian Commercial & Industrial solar rooftop business. Both acquisitions develop Joulz's European footprint, expanding its integrated solutions into the heat sector and increase its profitability by 70%. 3iN supported these acquisitions with a further investment of €107 million.

Infinis delivered good operational and financial performance in 2025, despite decreases in power prices, which the business has effectively mitigated with hedging strategies.

FLAG saw good demand for subsea cables as data usage continues to grow, particularly from the development of AI. FLAG acquired the IAX/IEX cable systems and a fibre pair on the trans-pacific ECHO system in the year, with a further investment of $70 million funded from its own resources.

3iN also saw positive contributions from Tampnet, Future biogas and Oystercatcher's 45% owned terminal Advario Singapore.

Towards the end of 2025, the lending appetite for German fibre rollout businesses deteriorated materially. As DNS:NET's fibre rollout plan is highly dependent on the availability of new funding, which is now constrained, the valuation has been written down to nil, representing a significant drag on 3iN's overall return for the year.

Lower local authority spending and increased competition in the temporary traffic light segment continued to weigh on SRL's performance.

In March 2026, 3iN and 3i managed funds agreed to invest c.€400 million to acquire a majority stake in Lefdal Mine Datacenter, a high-quality Norwegian data centre campus. The transaction is due to complete in the summer of 2026.

As investment manager to 3iN, in FY2026, we recognised a management and support services fee of £54 million (2025: £51 million) and a NAV-based performance fee of £16 million (2025: £29 million). This performance fee comprised a third of the potential performance fee for each of FY2026, FY2025 and FY2024, after the performance hurdle was met in each year.

North American Infrastructure

We established our North American Infrastructure investment business in 2017, and subsequently reached a first close for the North American Infrastructure Fund ("NAIF") in 2022. Across this period of time our highly experienced North American Infrastructure team has developed a portfolio of assets including those within the NAIF and Smarte Group, that focus on essential services across sectors with high barriers to entry.

NAIF

Regional Rail delivered solid organic growth during the year, reflecting higher volumes across its key regions. In June 2025, the company completed the acquisition of Minnesota Commercial Railway, its eighth since we first invested, adding c.86 miles of track to its operations. After a successful refinancing in March 2026, 3i received proceeds of £13 million. EC Waste continued to expand geographical coverage of waste collection and environmental management services across Puerto Rico, through the acquisition of ARB waste services in June 2025. The company continues to advance landfill gas-to-energy initiatives at two of its major facilities. Overall, EC Waste delivered stable returns in the year. Amwaste experienced positive trading momentum, driven by increased landfill tonnage, the full year performance of two tuck-in acquisitions completed in 2024, and good operational performance.

Assets under management

Infrastructure AUM increased to £6.9 billion (31 March 2025: £6.3 billion), primarily reflecting the increase in the share price of 3iN and strong returns from the larger European assets. We generated fee income of £65 million from our Infrastructure fund management activities in the period (2025: £61 million).

3i's proprietary capital Infrastructure portfolio

The Group's proprietary capital Infrastructure portfolio consists of its 29% quoted stake in 3iN, its investment in Smarte Group (formerly Smarte Carte) and direct stakes in other managed funds.

Quoted stake in 3iN

At 31 March 2026, our 29% stake in 3iN was valued at £897 million (31 March 2025: £856 million), as its share price increased by 5% year-on-year to 333 pence (31 March 2025: 318 pence). As a result, we recognised an unrealised value gain of £41 million (2025: unrealised value loss of £23 million), in addition to the £35 million of dividend income received in the year (2025: £33 million).

North American Infrastructure proprietary capital

Smarte Group delivered resilient performance in 2025. Performance was supported by growth across the international carts, lockers and ancillary airport service segments. Demand for carts at US airport locations was weaker, as macro-economic and geopolitical activity weighed on inbound US traffic volumes.

In January 2026, Smarte Group completed the acquisition of Lost & Found Software, a lost-and-found-software technology provider to airports and transport hubs globally. The self-funded acquisition further expands Smarte Group's reach internationally.

31 March 2026, Smarte Group was valued at £301 million on a DCF basis (31 March 2025: £308 million).

Table 8: Assets under management as at 31 March 2026

Fund/strategy	Proprietary capital value £m	AUM £m	Fee income earned in 2026 £m
3iN1	897	3,071	54
3i MIA	100	1,957	4
3i managed accounts	-	981	5
North American Infrastructure Fund2	210	561	2
Smarte Group	301	301	-
Other3	35	n/a	n/a
Total	1,543	6,871	65

1 AUM based on the share price at 31 March 2026.

2 Includes Regional Rail, EC Waste and Amwaste.

3 Other reflects our remaining proprietary stake in Alba EOPF (formerly 3i EOPF), following the sale of our operational projects infrastructure fund capability in May 2024.

Scandlines

At a glance

Gross investment return £55m or 10% (2025: £46m or 9%)

Dividend income £21m (2025: £22m)

We first invested in Scandlines in 2007, increasing our stake in 2013, before realising our holding in 2018, returning £835 million of proceeds at a money multiple of 7.7x. We subsequently reinvested £529 million in a 35% stake in Scandlines in 2018. Since our reinvestment, Scandlines has returned total cash proceeds of £253 million, 48% of our reinvestment, and is held on a longer-term basis to generate capital and income returns.

Performance

Scandlines delivered a resilient financial performance in FY2026, generating a GIR of £55 million, or 10% of opening portfolio value (2025: £46 million, 9%). Despite weak consumer sentiment, leisure performed well, particularly over the peak summer period. The freight segment continued to see volume pressure amid a negative macroeconomic backdrop and higher competition across the Baltic routes.

Scandlines remains highly cash generative and distributed £21 million of dividends to 3i in FY2026 (2025: £22 million).

Scandlines continues to make good progress against its sustainability agenda, with The Baltic Whale, Scandlines' new zero direct emission freight ferry, entering operations in March 2026. In addition to supporting Scandlines' ambition to reduce emissions, the vessel increases freight capacity on the route on which it operates by 27%. 

We continue to value Scandlines on a DCF basis, with a value of £571 million at 31 March 2026 (31 March 2025: £529 million).

Foreign exchange

We hedge the balance sheet value of our investment in Scandlines. We recognised a £22 million gain on foreign exchange translation (2025: £10 million loss), offset by a £9 million fair value loss (2025: £15 million gain) from derivatives in our hedging programme.

Table 9: Gross investment return for the year to 31 March

Investment basis	2026 £m	2025 £m
Unrealised profits on the revaluation of investments	21	19
Dividends	21	22
Foreign exchange on investments	22	(10)
Movement in fair value of derivatives	(9)	15
Gross investment return	55	46
Gross investment return as a % of opening portfolio value	10%	9%

Financial review

Highlights - Investment basis
Gross investment return	Operating profit before carried interest	Total return
£5,464m (2025: £5,211m)	£5,324m (2025: £5,098m)	£5,304m (2025: £5,049m)
Total return on opening shareholders' funds	Diluted NAV per share at 31 March 2026	Total dividend
22% (2025: 25%)	3,030p (31 March 2025: 2,542p)	84.5p (31 March 2025: 73.0p)

Table 10: Total return for the year to 31 March

Investment basis	2026 £m	2025 £m
Realised profits over value on the disposal of investments	89	51
Unrealised profits on the revaluation of investments	4,166	4,839
Portfolio income
Dividends	342	509
Interest income from investment portfolio	55	81
Fees receivable	3	10
Foreign exchange on investments	823	(361)
Movement in the fair value of derivatives	(14)	82
Gross investment return	5,464	5,211
Fees receivable from external funds	68	64
Operating expenses	(135)	(150)
Interest receivable	16	18
Interest payable	(65)	(65)
Exchange movements	(23)	20
Other expense	(1)	-
Operating profit before carried interest	5,324	5,098
Carried interest
Carried interest and performance fees receivable	23	29
Carried interest and performance fees payable	(46)	(81)
Operating profit before tax	5,301	5,046
Tax credit/(charge)	1	(1)
Profit for the year	5,302	5,045
Re-measurements of defined benefit plans	2	4
Total comprehensive income for the year ("Total return")	5,304	5,049
Total return on opening shareholders' funds	22%	25%

Investment basis and Alternative Performance Measures ("APMs") In our Strategic report, we report our financial performance using our Investment basis. We do not consolidate our portfolio companies as private equity and infrastructure investments are not operating subsidiaries. IFRS 10 sets out an exception to consolidation and requires us to fair value other companies in the Group (primarily intermediate holding companies and partnerships). As explained in the Investment basis, Reconciliation of Investment basis and IFRS sections below, the total comprehensive income and net assets are the same under our audited IFRS financial statements and our Investment basis. The Investment basis is simply a "look through" of IFRS 10 to present the underlying performance and we believe it is more transparent to readers of our Annual report and accounts. In October 2015, the European Securities and Markets Authority ("ESMA") published guidelines about the use of APMs. These are financial measures such as KPIs that are not defined under IFRS. Our Investment basis is itself an APM, and we use a number of other measures which, on account of being derived from the Investment basis, are also APMs. Further information about our use of APMs, including the applicable reconciliations to the IFRS equivalent where appropriate, is provided at the end of the Financial review and should be read alongside the Investment basis to IFRS reconciliation. Our APMs are gross investment return as a percentage of the opening investment portfolio value, cash realisations, cash investment, operating cash profit, net cash/(debt) and gearing.

Realised profits/losses

We generated total realised proceeds of £1,517 million (2025: £1,837 million), primarily from Action's capital restructuring and the sales of MPM and MAIT. These sales were the driver of the £89 million realised profits generated in Private Equity (2025: £50 million).

Unrealised value movements

We recognised an unrealised profit of £4,166 million (2025: £4,839 million) as shown in Table 11 below. Action's strong performance contributed £3,544 million (2025: £4,324 million). We also saw good contributions from Royal Sanders and a number of our other Private Equity investments including Audley Travel, Luqom and ten23 health, offsetting a negative contribution principally from Wilson and Cirtec Medical. Our Infrastructure portfolio saw positive contributions from 3iN and other funds.

Further information on the Private Equity, Infrastructure and Scandlines valuations is included in the business reviews.

Table 11: Unrealised value movements on the revaluation of investments for the year to 31 March

Investment basis	2026 £m	2025 £m
Private Equity	4,080	4,803
Infrastructure	65	17
Scandlines	21	19
Total	4,166	4,839

Portfolio income

Portfolio income comprising dividends, interest income from investment portfolio and fees receivable, decreased to £400 million for the year (2025: £600 million), primarily due to the timing of Action's second dividend that is expected to be received in May 2026, compared to March in the prior year. Other notable contributions include interest income from our portfolio companies, the majority of which is non-cash.

Fees receivable from external funds

Fees receivable from external funds were £68 million in FY2026 (2025: £64 million). The majority of this related to the fund management fee that 3i received from 3iN, which amounted to £54 million in FY2026 (2025: £51 million).

Operating expenses

Operating expenses decreased in the year to £135 million (2025: £150 million), driven by a lower share-based payment charge reflecting a decrease in 3i's share price during the year.

Interest payable

We recognised interest payable of £65 million (2025: £65 million). Interest payable includes interest on the Group's loans and borrowings and amortisation of capitalised fees.

Operating cash profit

We generated an operating cash profit of £276 million in the year (2025: £469 million). Cash income decreased to £421 million (2025: £598 million), principally due to timing of the second Action dividend, with Action's second dividend expected to be received in May 2026 compared to March in the prior year. Cash income included £246 million of cash dividends from Action (2025: £433 million) as well as cash dividends from 3iN, Scandlines and Tato. Excluding the dividends received from Action, the operating cash profit was £30 million (2025: £36 million).

We paid cash operating expenses of £145 million (2025: £129 million) in the year, as shown in Table 12 below. Cash operating expenses increased due to higher variable compensation cash payments. Cash operating expenses were higher than the £135 million (2025: £150 million) of operating expenses recognised in the Consolidated statement of comprehensive income as a result of a lower share-based payment charge.

Table 12: Operating cash profit for the year to 31 March

Investment basis	2026 £m	2025 £m
Cash fees from external funds	64	65
Cash portfolio fees	4	7
Cash portfolio dividends and interest	353	526
Cash income	421	598
Cash operating expenses1	(145)	(129)
Operating cash profit	276	469

1 Cash operating expenses include operating expenses paid and lease payments.

Carried interest and performance fees

We receive carried interest and performance fees from third-party funds and 3iN. We also pay carried interest and performance fees to participants in plans relating to returns from investments. These are received and/or paid subject to meeting certain performance conditions and when cash proceeds have been received following a realisation, refinancing event or other cash distribution and performance hurdles are passed in cash terms. Due to the passage of time between investment and realisation, the schemes are usually active for a number of years and their participants include both current and previous employees of 3i. In Private Equity (excluding the long-term hold assets), we typically accrue net carried interest payable of c.10-12% of the relevant carry vintages' GIR, once the performance hurdle is achieved, based on the assumption that all investments are realised at their balance sheet value. We no longer accrue carried interest payable on Action. Carried interest payable associated with Action was crystallised and paid in previous years.

The overall performance of the Private Equity portfolio resulted in a £47 million increase in the carried interest payable expense.

In Infrastructure, 3iN pays a performance fee based on its NAV on an annual basis, subject to a hurdle rate of return. The continued strong performance of the assets held by 3iN, including the significant uplift achieved on the agreed sale of TCR, resulted in the recognition of £16 million (2025: £29 million) of performance fees receivable. We also recognised £6 million of carried interest receivable from other infrastructure funds.

Overall, the effect of the income statement charge of £46 million (2025: £81 million), cash payments of £15 million (2025: £521 million), as well as currency translation meant that the balance sheet carried interest and performance fees payable was £408 million (31 March 2025: £360 million).

Table 13: Carried interest and performance fees for the year to 31 March

	Investment basis Statement of comprehensive income		Investment basis Statement of financial position
	2026 £m	2025 £m	2026 £m	2025 £m
Carried interest and performance fees receivable
Private Equity	1	-	2	4
Infrastructure	22	29	22	29
Total	23	29	24	33
Carried interest and performance fees payable
Private Equity	(47)	(70)	(403)	(348)
Infrastructure	1	(11)	(5)	(12)
Total	(46)	(81)	(408)	(360)

Table 14: Carried interest and performance fees paid in the year to 31 March

Investment basis cash flow statement	2026 £m	2025 £m
Carried interest and performance fees cash paid
Private Equity	7	510
Infrastructure	8	11
Total	15	521

Net foreign exchange movements

The Group recorded a total foreign exchange translation gain of £786 million including the impact of foreign exchange hedging in the year (March 2025: £259 million loss), as a result of sterling weakening by 4% against the euro, partially offset by sterling strengthening by 3% against the US dollar. 

At 31 March 2026, the notional value of the Group's forward foreign exchange contracts was €3.0 billion and $1.2 billion. The €3.0 billion includes the €600 million notional value of the forward foreign exchange contracts related to the Scandlines hedging programme. 

Including the impact from foreign exchange hedging, 82% of the Group's net assets are denominated in euros or US dollars. Based on the Group's net assets at 31 March 2026, including the impact from foreign exchange hedging, a 1% movement in euro and US dollar foreign exchange rates would impact the total return by £242 million and £12 million, as shown in Table 15 below.

Table 15: Net assets1 and sensitivity by currency at 31 March 2026

	FX rate	£m	%	1% sensitivity £m
Sterling	n/a	5,267	17	n/a
Euro2	1.1467	24,180	78	242
US dollar2	1.3233	1,223	4	12
Danish krone	8.5672	182	1	2
Other	n/a	35	-	n/a
Total	n/a	30,887	100	n/a

1 The Group's foreign exchange hedging is treated as a sterling asset within the above table.

2 The sensitivity impact calculated on the net assets position includes the impact of foreign exchange hedging.

Tax

The Group's parent company continues to operate in the UK as an approved investment trust company. An approved investment trust is a UK investment company which is required to meet certain conditions set out in the UK tax rules to obtain and maintain its tax status. This approval allows certain investment profits of the Company, broadly its capital profits, to be exempt from tax in the UK. Income and expenditure, excepting those exempt returns in the Company, are both subject to taxation. The Group's tax credit for the year was £1 million (2025: £1 million charge).

The Group's overall UK tax position for the financial year is dependent on the finalisation of the tax returns of the various corporate and partnership entities in the UK group.

Pension

The Trustees of the UK defined benefit plan ("the Plan") completed the wind‑up of the Plan in March 2026. The remaining surplus assets were paid to the Group. Net of associated tax liabilities settled by the Plan, the Group received £65 million.

Balance sheet and liquidity

At 31 March 2026, the Group had net debt of £547 million (31 March 2025: £771 million) and gearing of 2% after the receipt of cash income of £421 million and net cash proceeds of £610 million offsetting Group dividend payments of £765 million.

During the year, we refinanced the Group's existing £900 million RCF with a new five-year £1.2 billion RCF at improved pricing. The new RCF provides the Group with additional financial flexibility at low cost until July 2030, with extension options to July 2032. The RCF continues to have no financial covenants.

The Group had liquidity of £1,864 million as at 31 March 2026 (31 March 2025: £1,323 million), comprising cash and deposits of £664 million (31 March 2025: £423 million) and an undrawn RCF of £1,200 million.

The investment portfolio value increased to £31,821 million at 31 March 2026 (31 March 2025: £25,579 million), mainly driven by unrealised profits of £4,166 million in the year.

Further information on investments and realisations is included in the Private Equity, Infrastructure and Scandlines business reviews.

Table 16: Simplified consolidated balance sheet at 31 March

Investment basis Statement of financial position	2026 £m	2025 £m
Investment portfolio	31,821	25,579
Gross debt	(1,211)	(1,194)
Cash and deposits	664	423
Net debt	(547)	(771)
Carried interest and performance fees receivable	24	33
Carried interest and performance fees payable	(408)	(360)
Other net assets	(3)	130
Net assets	30,887	24,611
Gearing1	2%	3%

1 Gearing is net debt as a percentage of net assets.

3i Group plc share issuance

As a result of the Action transactions detailed in the Business review, we issued a total of 51 million new ordinary shares of 73 19/22 pence in 3i Group plc shares. At 31 March 2026, the number of diluted shares was 1,019,365,230 (31 March 2025: 968,085,350).

Going concern

The Annual report and accounts 2026 were prepared on a going concern basis. The Directors made an assessment of going concern, taking into account the Group's current performance and the outlook, and performed additional analysis to support the going concern assessment. Further details on going concern can be found in the Resilience statement in our Annual report and accounts 2026.

Dividend

The Board has recommended a second FY2026 dividend of 48.0 pence per share (2025: 42.5 pence), taking the total dividend for the year to 84.5 pence per share (2025: 73.0 pence). Subject to shareholder approval, the dividend will be paid to shareholders in July 2026.

Key accounting judgements and estimates A key judgement is the assessment required to determine the degree of control or influence the Group exercises and the form of any control to ensure that the financial treatment of investment entities is accurate. The introduction of IFRS 10 resulted in a number of intermediate holding companies being presented at fair value, which has led to reduced transparency of the underlying investment performance. As a result, the Group continues to present a non-GAAP Investment basis set of financial statements to ensure that the commentary in the Strategic report remains fair, balanced and understandable. The reconciliation of the Investment basis to IFRS is shown later in the document. In preparing these accounts, the key accounting estimate is the carrying value of our investment assets, which is stated at fair value. Given the importance of the valuation of investments, the Board has a separate Valuations Committee to review the valuation policy, process and application to individual investments. However, asset valuations for unquoted investments are inherently subjective, as they are made on the basis of assumptions which may not prove to be accurate. At 31 March 2026, 97% by value of the investment assets were unquoted (31 March 2025: 96%).

Background to Investment basis financial statements

The Group makes investments in portfolio companies directly, held by 3i Group plc, and indirectly, held through intermediate holding company and partnership structures ("Investment entity subsidiaries"). It also has other operational subsidiaries which provide services and other activities such as employment, regulatory activities, management and advice ("Trading subsidiaries"). The application of IFRS 10 requires us to fair value a number of intermediate holding companies that were previously consolidated line by line. This fair value approach, applied at the intermediate holding company level, effectively obscures the performance of our proprietary capital investments and associated transactions occurring in the intermediate holding companies.

The financial effect of the underlying portfolio companies and fee income, operating expenses and carried interest transactions occurring in Investment entity subsidiaries are aggregated into a single value. Other items which were previously eliminated on consolidation are now included separately.

To maintain transparency in our report and aid understanding we introduced separate non-GAAP "Investment basis" Statements of comprehensive income, financial position and cash flow in our 2014 Annual report and accounts. The Investment basis is an APM and the Strategic report is prepared using the Investment basis as we believe it provides a more understandable view of our performance. Total return and net assets are equal under the Investment basis and IFRS; the Investment basis is simply a "look through" of IFRS 10 to present the underlying performance.

Reconciliation of Investment basis and IFRS

A detailed reconciliation from the Investment basis to IFRS basis of the Consolidated statement of comprehensive income, Consolidated statement of financial position and Consolidated cash flow statement is shown on the following pages.

Reconciliation of Investment basis and IFRS

Reconciliation of consolidated statement of comprehensive income

for the year to 31 March

	Footnotes	Investment basis 2026 £m	IFRS adjustments 2026 £m	IFRS basis 2026 £m	Investment basis 2025 £m	IFRS adjustments 2025 £m	IFRS basis 2025 £m
Realised profits/(losses) over value on the disposal of investments	1,2	89	(68)	21	51	(46)	5
Unrealised profits on the revaluation of investments	1,2	4,166	(1,170)	2,996	4,839	(1,027)	3,812
Fair value movements on investment entity subsidiaries	1	-	1,565	1,565	-	953	953
Portfolio income
Dividends	1,2	342	(87)	255	509	(96)	413
Interest income from investment portfolio	1,2	55	(32)	23	81	(52)	29
Fees receivable	1,2	3	3	6	10	3	13
Foreign exchange on investments	1,3	823	(179)	644	(361)	116	(245)
Movement in the fair value of derivatives		(14)	-	(14)	82	-	82
Gross investment return		5,464	32	5,496	5,211	(149)	5,062
Fees receivable from external funds		68	-	68	64	-	64
Operating expenses	1,4	(135)	1	(134)	(150)	1	(149)
Interest receivable	1,4	16	(1)	15	18	(3)	15
Interest payable		(65)	-	(65)	(65)	-	(65)
Exchange movements	1,3	(23)	(99)	(122)	20	57	77
Income from investment entity subsidiaries	1	-	18	18	-	21	21
Other expense	1,4	(1)	-	(1)	-	(1)	(1)
Operating profit before carried interest		5,324	(49)	5,275	5,098	(74)	5,024
Carried interest
Carried interest and performance fees receivable		23	-	23	29	-	29
Carried interest and performance fees payable	1,4	(46)	41	(5)	(81)	67	(14)
Operating profit before tax		5,301	(8)	5,293	5,046	(7)	5,039
Tax credit/(charge)		1	-	1	(1)	-	(1)
Profit for the year		5,302	(8)	5,294	5,045	(7)	5,038
Other comprehensive income
Exchange differences on translation of foreign operations	1,3	-	8	8	-	7	7
Re-measurements of defined benefit plans		2	-	2	4	-	4
Other comprehensive income for the year		2	8	10	4	7	11
Total comprehensive income for the year ("Total return")		5,304	-	5,304	5,049	-	5,049

The IFRS basis is audited and the Investment basis is unaudited.

Notes to the Reconciliation of consolidated statement of comprehensive income above:

1 Applying IFRS 10 to the Consolidated statement of comprehensive income consolidates the line items of a number of previously consolidated subsidiaries into a single line item "Fair value movements on investment entity subsidiaries". In the "Investment basis" accounts we have disaggregated these line items to analyse our total return as if these Investment entity subsidiaries were fully consolidated, consistent with prior years. The adjustments simply reclassify the Consolidated statement of comprehensive income of the Group, and the total return is equal under the Investment basis and the IFRS basis.

2 Realised profits, unrealised profits and portfolio income shown in the IFRS accounts only relate to portfolio companies that are held directly by 3i Group plc and not those portfolio companies held through Investment entity subsidiaries. Realised profits, unrealised profits and portfolio income in relation to portfolio companies held through Investment entity subsidiaries are aggregated into the single "Fair value movement on investment entity subsidiaries" line. This is the most significant reduction of information in our IFRS accounts.

3 Foreign exchange movements have been reclassified under the Investment basis as foreign currency asset and liability movements. Movements within the Investment entity subsidiaries are included within "Fair value movements on investment entities".

4 Other items also aggregated into the "Fair value movements on investment entity subsidiaries" line include operating expenses, interest receivable, other expense and carried interest and performance fees payable.

Reconciliation of consolidated statement of financial position

as at 31 March

	Footnotes	Investment basis 2026 £m	IFRS adjustments 2026 £m	IFRS basis 2026 £m	Investment basis 2025 £m	IFRS adjustments 2025 £m	IFRS basis 2025 £m
Assets
Non-current assets
Investments
Quoted investments	1	993	(96)	897	916	(60)	856
Unquoted investments	1	30,828	(10,775)	20,053	24,663	(7,163)	17,500
Investments in investment entity subsidiaries	1,2	-	10,535	10,535	-	6,916	6,916
Investment portfolio		31,821	(336)	31,485	25,579	(307)	25,272
Other non-current assets	1	27	(5)	22	35	(6)	29
Retirement benefit surplus		-	-	-	63	-	63
Property, plant and equipment		17	-	17	18	-	18
Right of use asset		43	-	43	41	-	41
Derivative financial instruments		10	-	10	46	-	46
Total non-current assets		31,918	(341)	31,577	25,782	(313)	25,469
Current assets
Carried interest and performance fees receivable		24	-	24	33	-	33
Other current assets	1	65	(5)	60	51	-	51
Derivative financial instruments		42	-	42	91	-	91
Cash and cash equivalents	1	664	(29)	635	423	(11)	412
Total current assets		795	(34)	761	598	(11)	587
Total assets		32,713	(375)	32,338	26,380	(324)	26,056
Liabilities
Non-current liabilities
Trade and other payables	1	(11)	2	(9)	(10)	1	(9)
Carried interest and performance fees payable	1	(396)	365	(31)	(333)	304	(29)
Loans and borrowings		(1,211)	-	(1,211)	(1,194)	-	(1,194)
Derivative financial instruments		(22)	-	(22)	(4)	-	(4)
Retirement benefit deficit		(17)	-	(17)	(17)	-	(17)
Lease liability		(45)	-	(45)	(42)	-	(42)
Total non-current liabilities		(1,702)	367	(1,335)	(1,600)	305	(1,295)
Current liabilities
Trade and other payables	1	(107)	-	(107)	(139)	4	(135)
Carried interest and performance fees payable	1	(12)	8	(4)	(27)	15	(12)
Lease liability		(5)	-	(5)	(3)	-	(3)
Total current liabilities		(124)	8	(116)	(169)	19	(150)
Total liabilities		(1,826)	375	(1,451)	(1,769)	324	(1,445)
Net assets		30,887	-	30,887	24,611	-	24,611
Equity
Issued capital		757	-	757	719	-	719
Share premium		2,494	-	2,494	792	-	792
Other reserves	3	27,714	-	27,714	23,181	-	23,181
Own shares		(78)	-	(78)	(81)	-	(81)
Total equity		30,887	-	30,887	24,611	-	24,611

The IFRS basis is audited and the Investment basis is unaudited.

Notes to the Reconciliation of consolidated statement of financial position above:

1 Applying IFRS 10 to the Consolidated statement of financial position aggregates the line items into the single line item "Investments in investment entity subsidiaries". In the Investment basis we have disaggregated these items to analyse our net assets as if the Investment entity subsidiaries were consolidated. The adjustment reclassifies items in the Consolidated statement of financial position. There is no change to the net assets, although for reasons explained below, gross assets and gross liabilities are different. The disclosure relating to portfolio companies is significantly reduced by the aggregation, as the fair value of all investments held by Investment entity subsidiaries is aggregated into the "Investments in investment entity subsidiaries" line. We have disaggregated this fair value and disclosed the underlying portfolio holding in the relevant line item, ie, quoted investments or unquoted investments. Other items which may be aggregated include carried interest, other assets and other payables, and the Investment basis presentation again disaggregates these items.

2 Intercompany balances between Investment entity subsidiaries and trading subsidiaries also impact the transparency of our results under the IFRS basis. If an Investment entity subsidiary has an intercompany balance with a consolidated trading subsidiary of the Group, then the asset or liability of the Investment entity subsidiary will be aggregated into its fair value, while the asset or liability of the consolidated trading subsidiary will be disclosed as an asset or liability in the Consolidated statement of financial position for the Group.

3 Investment basis financial statements are prepared for performance measurement and therefore reserves are not analysed separately under this basis.

Reconciliation of consolidated cash flow statement

for the year to 31 March

	Footnotes	Investment basis 2026 £m	IFRS adjustments 2026 £m	IFRS basis 2026 £m	Investment basis 2025 £m	IFRS adjustments 2025 £m	IFRS basis 2025 £m
Cash flow from operating activities
Purchase of investments	1	(907)	839	(68)	(1,182)	1,032	(150)
Proceeds from investments	1	1,517	(664)	853	1,841	(734)	1,107
Amounts paid to investment entity subsidiaries	1	-	(1,072)	(1,072)	-	(1,537)	(1,537)
Amounts received from investment entity subsidiaries	1	-	972	972	-	865	865
Cash flow from derivatives		89	-	89	113	-	113
Portfolio interest received	1	19	(13)	6	11	(5)	6
Portfolio dividends received	1	334	(81)	253	515	(95)	420
Portfolio fees received		4	-	4	7	-	7
Fees received from external funds		64	-	64	65	-	65
Carried interest and performance fees received		31	-	31	44	-	44
Carried interest and performance fees paid	1	(15)	1	(14)	(521)	498	(23)
Operating expenses paid	1	(140)	-	(140)	(123)	1	(122)
Other cash income	1	7	(1)	6	1	-	1
Other cash expenses	1	(1)	-	(1)	(54)	6	(48)
Interest received	1	15	-	15	18	(3)	15
Net cash flow from operating activities		1,017	(19)	998	735	28	763
Cash flow from financing activities
Issue of shares		1	-	1	1	-	1
Purchase of own shares		(15)	-	(15)	-	-	-
Dividends paid		(765)	-	(765)	(625)	-	(625)
Lease payments		(5)	-	(5)	(6)	-	(6)
Interest paid		(66)	-	(66)	(60)	-	(60)
Net cash flow from financing activities		(850)	-	(850)	(690)	-	(690)
Cash flow from investing activities
Purchase of property, plant and equipment		(1)	-	(1)	(16)	-	(16)
Proceeds from defined benefit pension		65	-	65	-	-	-
Net cash flow from investing activities		64	-	64	(16)	-	(16)
Change in cash and cash equivalents	2	231	(19)	212	29	28	57
Cash and cash equivalents at the start of year	2	423	(11)	412	396	(38)	358
Effect of exchange rate fluctuations	1	10	1	11	(2)	(1)	(3)
Cash and cash equivalents at the end of year	2	664	(29)	635	423	(11)	412

The IFRS basis is audited and the Investment basis is unaudited.

Notes to the Reconciliation of consolidated cash flow statement above:

1 The Consolidated cash flow statement is impacted by the application of IFRS 10 as cash flows to and from Investment entity subsidiaries are disclosed, rather than the cash flows to and from the underlying portfolio. Therefore in our Investment basis financial statements, we have disclosed our cash flow statement on a "look through" basis, in order to reflect the underlying sources and uses of cash flows and disclose the underlying investment activity.

2 There is a difference between the change in cash and cash equivalents of the Investment basis financial statements and the IFRS financial statements because there are cash balances held in Investment entity subsidiaries. Cash held within Investment entity subsidiaries will not be shown in the IFRS statements but will be seen in the Investment basis statements.

Alternative Performance Measures ("APMs")

We assess our performance using a variety of measures that are not specifically defined under IFRS and are therefore termed APMs. The APMs that we use may not be directly comparable with those used by other companies. Our Investment basis is itself an APM. The explanation of and rationale for the Investment basis and its reconciliation to IFRS is provided above. The table below defines our additional APMs.

Purpose	Calculation	Reconciliation to IFRS
Gross investment return as a percentage of opening portfolio value
A measure of the performance of our proprietary investment portfolio.	It is calculated as the gross investment return, as shown in the Investment basis Consolidated statement of comprehensive income, as a % of the opening portfolio value.	The equivalent balances under IFRS and the reconciliation to the Investment basis are shown in the Reconciliation of the consolidated statement of comprehensive income and the Reconciliation of the consolidated statement of financial position respectively.
		For further information see the group KPIs in our Annual report and accounts 2026.
Cash realisations
Cash proceeds from our investments support our returns to shareholders, as well as our ability to invest in new opportunities.	The cash received from the disposal of investments in the year as shown in the Investment basis Consolidated cash flow statement.	The equivalent balance under IFRS and the reconciliation to the Investment basis is shown in the Reconciliation of the consolidated cash flow statement.
		For further information see the group KPIs in our Annual report and accounts 2026.
Cash investment
Identifying new opportunities in which to invest proprietary capital is the primary driver of the Group's ability to deliver attractive returns.	The cash paid to acquire investments in the year as shown on the Investment basis Consolidated cash flow statement.	The equivalent balance under IFRS and the reconciliation to the Investment basis is shown in the Reconciliation of the consolidated cash flow statement.
		For further information see the group KPIs in our Annual report and accounts 2026.
Operating cash profit
By covering the cash cost of running the business with cash income, we reduce the potential dilution of capital returns.	The cash income from the portfolio (interest, dividends and fees) together with fees received from external funds less cash operating expenses and leases payments as shown on the Investment basis Consolidated cash flow statement. The calculation is shown in Table 12 of the Financial review.	The equivalent balance under IFRS and the reconciliation to the Investment basis is shown in the Reconciliation of the consolidated cash flow statement.
		For further information see the group KPIs in our Annual report and accounts 2026.
Net (debt)/cash
A measure of the available cash to invest in the business and an indicator of the financial risk in the Group's balance sheet.	Cash and cash equivalents plus deposits less loans and borrowings as shown on the Investment basis Consolidated statement of financial position.	The equivalent balance under IFRS and the reconciliation to the Investment basis is shown in the Reconciliation of the consolidated statement of financial position.
Gearing
A measure of the financial risk in the Group's balance sheet.	Net debt (as defined above) as a % of the Group's net assets under the Investment basis. It cannot be less than zero.	The equivalent balance under IFRS and the reconciliation to the Investment basis is shown in the Reconciliation of the consolidated statement of financial position.

Audited financial statements

Consolidated statement of comprehensive income

for the year to 31 March

	Notes	2026 £m	2025 £m
Realised profits over value on the disposal of investments		21	5
Unrealised profits on the revaluation of investments		2,996	3,812
Fair value movements on investment entity subsidiaries		1,565	953
Portfolio income
Dividends		255	413
Interest income from investment portfolio		23	29
Fees receivable		6	13
Foreign exchange on investments		644	(245)
Movement in the fair value of derivatives		(14)	82
Gross investment return		5,496	5,062
Fees receivable from external funds		68	64
Operating expenses		(134)	(149)
Interest receivable		15	15
Interest payable		(65)	(65)
Exchange movements		(122)	77
Income from investment entity subsidiaries		18	21
Other expense		(1)	(1)
Operating profit before carried interest		5,275	5,024
Carried interest
Carried interest and performance fees receivable		23	29
Carried interest and performance fees payable		(5)	(14)
Operating profit before tax		5,293	5,039
Tax credit/(charge)		1	(1)
Profit for the year		5,294	5,038
Other comprehensive income that may be reclassified to the income statement
Exchange differences on translation of foreign operations		8	7
Other comprehensive income that will not be reclassified to the income statement
Re-measurements of defined benefit plans		2	4
Other comprehensive income for the year		10	11
Total comprehensive income for the year		5,304	5,049
Earnings per share
Basic (pence)	2	539.4	522.0
Diluted (pence)	2	538.6	520.6

The Notes to the accounts section forms an integral part of these financial statements.

Consolidated statement of financial position

as at 31 March

	2026 £m	2025 £m
Assets
Non-current assets
Investments
Quoted investments	897	856
Unquoted investments	20,053	17,500
Investments in investment entity subsidiaries	10,535	6,916
Investment portfolio	31,485	25,272
Other non-current assets	22	29
Retirement benefit surplus	-	63
Property, plant and equipment	17	18
Right of use asset	43	41
Derivative financial instruments	10	46
Total non-current assets	31,577	25,469
Current assets
Carried interest and performance fees receivable	24	33
Other current assets	60	51
Derivative financial instruments	42	91
Cash and cash equivalents	635	412
Total current assets	761	587
Total assets	32,338	26,056
Liabilities
Non-current liabilities
Trade and other payables	(9)	(9)
Carried interest and performance fees payable	(31)	(29)
Loans and borrowings	(1,211)	(1,194)
Derivative financial instruments	(22)	(4)
Retirement benefit deficit	(17)	(17)
Lease liability	(45)	(42)
Total non-current liabilities	(1,335)	(1,295)
Current liabilities
Trade and other payables	(107)	(135)
Carried interest and performance fees payable	(4)	(12)
Lease liability	(5)	(3)
Total current liabilities	(116)	(150)
Total liabilities	(1,451)	(1,445)
Net assets	30,887	24,611
Equity
Issued capital	757	719
Share premium	2,494	792
Capital redemption reserve	43	43
Share-based payment reserve	29	35
Translation reserve	9	1
Capital reserve	26,205	21,257
Revenue reserve	1,428	1,845
Own shares	(78)	(81)
Total equity	30,887	24,611

The Notes to the accounts section forms an integral part of these financial statements

David Hutchison

Chair

13 May 2026

Consolidated statement of changes in equity

for the year to 31 March

2026	Share capital £m	Share premium £m	Capital redemption reserve £m	Share- based payment reserve £m	Translation reserve £m	Capital reserve1 £m	Revenue reserve1 £m	Own shares £m	Total equity £m
Total equity at the start of the year	719	792	43	35	1	21,257	1,845	(81)	24,611
Profit for the year	-	-	-	-	-	4,964	330	-	5,294
Exchange differences on translation of foreign operations	-	-	-	-	8	-	-	-	8
Re-measurements of defined benefit plans	-	-	-	-	-	2	-	-	2
Total comprehensive income for the year	-	-	-	-	8	4,966	330	-	5,304
Share-based payments	-	-	-	12	-	-	-	-	12
Release on exercise/forfeiture of share awards	-	-	-	(18)	-	-	18	-	-
Exercise of share awards	-	-	-	-	-	(18)	-	18	-
Ordinary dividends	-	-	-	-	-	-	(765)	-	(765)
Purchase of own shares	-	-	-	-	-	-	-	(15)	(15)
Issue of ordinary shares	38	1,702	-	-	-	-	-	-	1,740
Total equity at the end of the year	757	2,494	43	29	9	26,205	1,428	(78)	30,887

1 Refer to Note 17 in our Annual report and accounts 2026 for the nature of the capital and revenue reserves.

2025	Share capital £m	Share premium £m	Capital redemption reserve £m	Share- based payment reserve £m	Translation reserve £m	Capital reserve1 £m	Revenue reserve1 £m	Own shares £m	Total equity £m
Total equity at the start of the year	719	791	43	42	(6)	17,154	1,519	(92)	20,170
Profit for the year	-	-	-	-	-	4,535	503	-	5,038
Exchange differences on translation of foreign operations	-	-	-	-	7	-	-	-	7
Re-measurements of defined benefit plans	-	-	-	-	-	4	-	-	4
Total comprehensive income for the year	-	-	-	-	7	4,539	503	-	5,049
Share-based payments	-	-	-	16	-	-	-	-	16
Release on exercise/forfeiture of share awards	-	-	-	(23)	-	-	23	-	-
Exercise of share awards	-	-	-	-	-	(11)	-	11	-
Ordinary dividends	-	-	-	-	-	(425)	(200)	-	(625)
Issue of ordinary shares	-	1	-	-	-	-	-	-	1
Total equity at the end of the year	719	792	43	35	1	21,257	1,845	(81)	24,611

1 Refer to Note 17 in our Annual report and accounts 2026 for the nature of the capital and revenue reserves.

The Notes to the accounts section forms an integral part of these financial statements.

Consolidated cash flow statement

for the year to 31 March

	Notes	2026 £m	2025 £m
Cash flow from operating activities
Purchase of investments		(68)	(150)
Proceeds from investments		853	1,107
Amounts paid to investment entity subsidiaries		(1,072)	(1,537)
Amounts received from investment entity subsidiaries		972	865
Cash flow from derivatives		89	113
Portfolio interest received		6	6
Portfolio dividends received		253	420
Portfolio fees received		4	7
Fees received from external funds		64	65
Carried interest and performance fees received		31	44
Carried interest and performance fees paid		(14)	(23)
Operating expenses paid		(140)	(122)
Other cash income		6	1
Other cash expenses		(1)	(48)
Interest received		15	15
Net cash flow from operating activities		998	763
Cash flow from financing activities
Issue of shares		1	1
Purchase of own shares		(15)	-
Dividend paid	3	(765)	(625)
Lease payments		(5)	(6)
Interest paid		(66)	(60)
Net cash flow from financing activities		(850)	(690)
Cash flow from investing activities
Purchases of property, plant and equipment		(1)	(16)
Proceeds from settlement of defined benefit pension		65	-
Net cash flow from investing activities		64	(16)
Change in cash and cash equivalents		212	57
Cash and cash equivalents at the start of the year		412	358
Effect of exchange rate fluctuations		11	(3)
Cash and cash equivalents at the end of the year		635	412

The Notes to the accounts section forms an integral part of these financial statements.

Material accounting policies

Reporting entity

3i Group plc (the "Company") is a public limited company incorporated and domiciled in England and Wales. The consolidated financial statements ("the Group accounts") for the year to 31 March 2026 comprise the financial statements of the Company and its consolidated subsidiaries (collectively, "the Group").

The Group accounts have been prepared and approved by the Directors in accordance with section 395 of the Companies Act 2006 and the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The Company has taken advantage of the exemption in section 408 of the Companies Act 2006 not to present its Company statement of comprehensive income and related Notes.

A Basis of preparation

The Group and Company accounts have been prepared and approved by the Directors in accordance with UK-adopted international accounting standards. The financial statements are presented to the nearest million sterling (£m), the functional currency of the Company.

The Group and Company did not implement the requirements of any new standards in issue for the year ended 31 March 2026.

The IASB introduced a new IFRS Accounting Standard, IFRS 18 to replace IAS 1 Presentation of Financial Statements. This new standard establishes detailed requirements for classifying and aggregating income and expenses in the income statement, as well as disclosure obligations for management defined performance measures. IFRS 18 will have no impact on the Group's total comprehensive income as it does not impact recognition or measurement. The standard applies for annual reporting periods beginning on or after 1 January 2027 and was endorsed for use in the UK on 10 December 2025.

Going concern

These financial statements have been prepared on a going concern basis as disclosed in the Directors' report. The Directors have made an assessment of going concern for a period of at least 12 months from the date of approval of the accounts, taking into account the Group's current performance against a subdued macroeconomic environment and an uncertain geopolitical backdrop, financial position and the principal and emerging risks facing the business.

The Directors' assessment of going concern, which takes into account the business model (further detail in our Annual report and accounts 2026) and the Group's liquidity of £1,864 million, indicates that the Group and parent company will have sufficient funds to continue as a going concern, for at least the next 12 months from the date of approval of the accounts. As detailed within the Financial Review earlier in this document the Investment basis the Group covers its cash operating expenses of £145 million at 31 March 2026, with cash income generated by our Private Equity and Infrastructure businesses and Scandlines of £421 million at 31 March 2026. During the year, we refinanced the Group's existing £900 million RCF with a new five-year £1.2 billion RCF at improved pricing. The new RCF provides the Group with additional financial flexibility at low cost until July 2030, with extension options to July 2032. The RCF continues to have no financial covenants. The Group's liquidity comprises cash and deposits of £664 million (31 March 2025: £423 million) and an undrawn multi-currency facility of £1,200 million (31 March 2025: £900 million), which has no financial covenants.

As a proprietary investor, the Group has a long-term, responsible investment approach, and is not subject to external pressure to realise investments before optimum value can be achieved. The Board has the ability to take certain actions to help support the Group in adverse circumstances. Mitigating actions within management control during extended periods of low liquidity include, for example, drawing on the existing RCF or temporarily reducing new investment levels. The Group manages liquidity with the aim of ensuring it is adequate and sufficient, by regular monitoring of investments, realisations, operating expenses and portfolio cash income and there have been no post balance sheet changes that would be materially detrimental to liquidity. The Directors are of the opinion that the Group's cash flow forecast is sufficient to support the Group given the current market, economic conditions and outlook.

Having performed the assessment on going concern, the Directors considered it appropriate to prepare the financial statements of the Company and Group on a going concern basis, and have concluded that the Group has sufficient financial resources, is well placed to manage business risks in the current economic environment, and can continue operations for a period of at least 12 months from the date of issue of these financial statements.

B Basis of consolidation

In accordance with IFRS 10, the Company meets the criteria as an investment entity and therefore is required to recognise subsidiaries that also qualify as investment entities at fair value through profit or loss. It does not consolidate the investment entities it controls. Subsidiaries that provide investment-related services, such as advisory, management or employment services, are not accounted for at fair value through profit and loss and continue to be consolidated unless those subsidiaries qualify as investment entities, in which case they are recognised at fair value.

Subsidiaries are entities controlled by the Group. Control, as defined by IFRS 10, is achieved when the Group has all of the following:

• power over the relevant activities of the investee;

• exposure, or rights, to variable returns from its involvement with the investee; and

• the ability to affect those returns through its power over the investee.

The Group is required to determine the degree of control or influence the Group exercises and the form
of any control to ensure that the financial treatment is accurate.

Subsidiaries are fully consolidated from the date on which the Group effectively obtains control. All intragroup balances and transactions with subsidiaries are eliminated upon consolidation. Subsidiaries are de-consolidated from the date that control ceases.

The Group comprises several different types of subsidiaries. For a new subsidiary, the Group assesses whether it qualifies as an investment entity under IFRS 10, based on the function the entity performs within the Group. For existing subsidiaries, the Group annually reassesses the function performed by each type of subsidiary to determine if the treatment under IFRS 10 exception from consolidation is still appropriate. The types of subsidiaries and their treatment under IFRS 10 are as follows:

General Partners ("GPs") - Consolidated

General Partners provide investment management services and do not hold any direct investments in portfolio assets. These entities are not investment entities.

Investment managers/advisers - Consolidated

These entities provide investment-related services through the provision of investment management or advice. They do not hold any direct investments in portfolio assets. These entities are not investment entities.

Holding companies of investment managers/advisers - Consolidated

These entities provide investment-related services through their subsidiaries. Typically they do not hold any direct investment in portfolio assets and these entities are not investment entities.

Limited partnerships and other intermediate investment holding structures - Fair valued

The Group makes investments in portfolio assets through its ultimate parent company, as well as through other limited partnerships and corporate subsidiaries, which the Group has created to align the interests of the investment teams with the performance of the assets, through the use of various carried interest schemes. The purpose of these limited partnerships and corporate holding vehicles, many of which also provide investment-related services, is to invest for investment income and capital appreciation. These partnerships and corporate subsidiaries meet the definition of an investment entity and are accounted for at fair value through profit and loss.

Portfolio investments - Fair valued

Under IFRS 10, the test for accounting subsidiaries takes wider factors of control as well as actual equity ownership into account. In accordance with the investment entity exception, these entities have been held at fair value with movements in fair value being recognised in profit or loss.

Associates - Fair valued

Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. Investments that are held as part of the Group's investment portfolio are carried in the Consolidated statement of financial position at fair value even though the Group may have significant influence over those companies.

Further detail on our application of IFRS 10 can be found in the Reconciliation of Investment basis to IFRS section.

C Critical accounting judgements and estimates

The reported results of the Group are sensitive to the accounting policies, assumptions and estimates that underpin the preparation of its financial statements. UK company law and IFRS require the Directors, in preparing the Group's financial statements, to select suitable accounting policies, apply them consistently and make judgements and estimates that are reasonable and prudent. The Group's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. The actual outcome may be materially different from that anticipated.

(a) Critical judgements

In the course of preparing the financial statements, one judgement has been made in the process of applying the Group's accounting policies, other than those involving estimations, that has had a significant effect on the amounts recognised in the financial statements as follows:

I. Assessment as an investment entity

The Board has concluded that the Company meets the definition of an investment entity under IFRS 10.

This assessment reflects that 3i raises funds from more than one investor and invests for capital appreciation and investment income and evaluates performance on a fair value basis. The Group's activities are focused on investing in a diversified portfolio of private equity and infrastructure assets, with performance measured through fair value in line with IFRS 13. 3i provides strategic oversight and governance support to investee companies, it does not undertake day to day operational management. Each investment is held with a defined exit strategy, supporting the Group's focus on maximising value on realisation for our investors.

Subsidiaries providing investment management services, are consolidated, while investment holding structures, portfolio companies and associates are measured at fair value through profit or loss. This judgement is reassessed during the year and remains appropriate given the Group's purpose, business model, strategic objectives and fair value-based performance evaluation.

(b) Critical estimates

In addition to these significant judgements, the Directors have made one estimate, which they deem to have a significant risk of resulting in a material adjustment to the amounts recognised in the financial statements within the next financial year. The detail of this estimate is as follows:

I. Fair valuation of the investment portfolio

The investment portfolio, a material group of assets of the Group, is held at fair value. Details of valuation methodologies used and the associated sensitivities are disclosed in Note12 Fair values of assets and liabilities in Annual report and accounts 2026. Given the importance of this area, the Board has a separate Valuations Committee to review the valuations policies, process and application to individual investments. A report on the activities of the Valuations Committee (including a review of the assumptions made) is included in the Valuations Committee report found in the Governance section of our Annual report and accounts 2026.

D Other accounting policies

(a) Gross investment return

Gross investment return is equivalent to "revenue" for the purposes of IAS 1. It represents the overall increase in net assets from the investment portfolio net of deal-related costs and includes foreign exchange movements in respect of the investment portfolio. The substantial majority is investment income and outside the scope of IFRS 15. It is analysed into the following components with the relevant standard shown where appropriate:

i. Realised profits or losses over value on the disposal of investments are the difference between the fair value of the consideration received in accordance with IFRS 13 less any directly attributable costs, on the sale of equity and the repayment of interest income from the investment portfolio, and its carrying value at the start of the accounting period, converted into sterling using the exchange rates in force at the date of disposal. See Note 2 in our Annual report and accounts 2026 for more details.

ii. Unrealised profits or losses on the revaluation of investments are the movement in the fair value of investments in accordance with IFRS 13 between the start and end of the accounting period converted into sterling using the exchange rates in force at the date of fair value assessment. See Note 3 in our Annual report and accounts 2026 for more details.

iii. Fair value movements on investment entity subsidiaries are the movements in the fair value of Group subsidiaries which are classified as investment entities under IFRS 10. The Group makes investments in portfolio assets through these entities which are usually limited partnerships or corporate subsidiaries. See Note 11 in our Annual report and accounts 2026 for more details.

iv. Portfolio income is that portion of income that is directly related to the return from individual investments. It is recognised to the extent that it is probable that there will be economic benefit and the income can be reliably measured. The following specific recognition criteria must be met before the income is recognised:

• Dividends from equity investments are recognised in profit or loss when the shareholders' rights to receive payment is established;

• Interest income from the investment portfolio is recognised as it accrues. When the fair value of an investment is assessed to be below the principal value of a loan, the Group recognises a provision against any interest accrued from the date of the assessment going forward until the investment is assessed to have recovered in value; and

• The accounting policy for fee income is included in Note 4 in our Annual report and accounts 2026 for more details.

v. Foreign exchange on investments arises on investments made in currencies that are different from the functional currency of the Company, being sterling. Investments are translated at the exchange rate ruling at the date of the transaction in accordance with IAS 21. At each subsequent reporting date, investments are translated to sterling at the exchange rate ruling at that date.

vi. Movement in the fair value of derivatives relates to the change in fair value of forward foreign exchange contracts which have been used to minimise foreign currency risk in the investment portfolio. See Note 15 in our Annual report and accounts 2026 for more details.

(b) Foreign currency translation

For the Company and those subsidiaries and associates whose balance sheets are denominated in sterling, which is the Company's functional and presentational currency, monetary assets and liabilities and non-monetary assets held at fair value denominated in foreign currencies are translated into sterling at the closing rates of exchange at the balance sheet date. Foreign currency transactions are translated into sterling at the average rates of exchange over the year and exchange differences arising are taken to profit or loss.

The statements of financial position of subsidiaries, which are not held at fair value, denominated in foreign currencies are translated into sterling at the closing rates. The statements of comprehensive income for these subsidiaries and associates are translated at the average rates and exchange differences arising are taken to other comprehensive income. Such exchange differences are reclassified to profit or loss in the period in which the subsidiary or associate is disposed of.

(c) Treasury assets and liabilities

Short-term treasury assets, and short and long-term treasury liabilities are used in order to manage cash flows.

Cash and cash equivalents comprise cash at bank and amounts held in money market funds which are readily convertible into cash and there is an insignificant risk of changes in value. Financial assets and liabilities are recognised in the balance sheet when the relevant Group entity becomes a party to the contractual provisions of the instrument. Derecognition occurs when rights to cash flows from a financial asset expire, or when a liability is extinguished.

Notes to the accounts

1 Segmental analysis

Operating segments are the components of the Group whose results are regularly reviewed by the Group's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.

The Chief Executive, who is considered to be the chief operating decision maker, managed the Group on the basis of business divisions determined with reference to market focus,  investment funding model and the Group's management hierarchy. A description of the activities, including returns generated by these divisions and the allocation of resources, is given in the Strategic report. To aid the readers' understanding we have split out Action, Private Equity's largest asset, into a separate column. Action is not regarded as a reported segment as the chief operating decision maker reviews performance, makes decisions and allocates resources to the Private Equity segment, which includes Action.

The segmental information that follows is presented on the basis used by the Chief Executive to monitor the performance of the Group. The reported segments are Private Equity, Infrastructure and Scandlines. Group performance is not monitored by the chief operating decision maker on a geographical or sector basis and, as such, these are not considered reportable segments.

The segmental analysis is prepared on the Investment basis. The Investment basis is an APM and we believe it provides a more understandable view of performance. For more information on the Investment basis and a reconciliation between the Investment basis and IFRS can be found in the Reconciliation of Investment basis and IFRS section earlier in this document.

Investment basis Year to 31 March 2026	Private Equity £m	Of which Action £m	Infrastructure £m	Scandlines £m	Total3 £m
Realised profits over value on the disposal of investments	89	-	-	-	89
Unrealised profits on the revaluation of investments	4,080	3,544	65	21	4,166
Portfolio income
Dividends	281	246	40	21	342
Interest income from investment portfolio	43	-	12	-	55
Fees receivable	4	1	(1)	-	3
Foreign exchange on investments	811	745	(10)	22	823
Movement in the fair value of derivatives	(5)	(26)	-	(9)	(14)
Gross investment return	5,303	4,510	106	55	5,464
Fees receivable from external funds	3		65	-	68
Operating expenses	(87)		(45)	(3)	(135)
Interest receivable					16
Interest payable					(65)
Exchange movements					(23)
Other expense					(1)
Operating profit before carried interest					5,324
Carried interest
Carried interest and performance fees receivable	1	-	22	-	23
Carried interest and performance fees payable	(47)	-	1	-	(46)
Operating profit before tax					5,301
Tax credit/(charge)					1
Profit for the year					5,302
Other comprehensive income
Re-measurements of defined benefit plans					2
Total return					5,304
Realisations1	1,502	944	15	-	1,517
Cash investment	(903)	(827)	(4)	-	(907)
Non-cash investment	(1,739)	(1,739)	-	-	(1,739)
Total investment	(2,642)	(2,566)	(4)	-	(2,646)
Net realisations/(investment)	(1,140)	(1,622)	11	-	(1,129)
Balance sheet
Opening portfolio value at 1 April 2025	23,558	17,831	1,492	529	25,579
Additions2	2,751	2,566	4	-	2,755
Value disposed	(1,414)	(944)	(15)	-	(1,429)
Unrealised value movement	4,080	3,544	65	21	4,166
Foreign exchange and other movements	732	746	(3)	21	750
Closing portfolio value at 31 March 2026	29,707	23,743	1,543	571	31,821

1 Realised proceeds may differ from cash proceeds due to timing of cash receipts.

2 Includes cash investment, non-cash investment and capitalised interest.

3 The total is the sum of Private Equity, Infrastructure and Scandlines, "Of which Action" is part of Private Equity.

Interest receivable, interest payable, exchange movements (excluding foreign exchange on investments), the tax charge and re-measurements of defined benefit plans are not managed by segment by the chief operating decision maker and therefore have not been allocated to a specific segment.

Investment basis Year to 31 March 2025	Private Equity £m	Of which Action £m	Infrastructure £m	Scandlines £m	Total3 £m
Realised profits over value on the disposal of investments	50	-	1	-	51
Unrealised profits on the revaluation of investments	4,803	4,324	17	19	4,839
Portfolio income
Dividends	450	433	37	22	509
Interest income from investment portfolio	69	-	12	-	81
Fees receivable	14	5	(4)	-	10
Foreign exchange on investments	(340)	(255)	(11)	(10)	(361)
Movement in the fair value of derivatives	67	44	-	15	82
Gross investment return	5,113	4,551	52	46	5,211
Fees receivable from external funds	3		61	-	64
Operating expenses	(98)		(49)	(3)	(150)
Interest receivable					18
Interest payable					(65)
Exchange movements					20
Other expense					-
Operating profit before carried interest					5,098
Carried interest
Carried interest and performance fees receivable	-		29	-	29
Carried interest and performance fees payable	(70)		(11)	-	(81)
Operating profit before tax					5,046
Tax credit/(charge)					(1)
Profit for the year					5,045
Other comprehensive income
Re-measurements of defined benefit plans					4
Total return					5,049
Realisations1	1,827	1,164	10	-	1,837
Cash investment	(1,177)	(768)	(4)	(1)	(1,182)
Non-cash investment	-	-	-	-	-
Total investment	(1,177)	(768)	(4)	(1)	(1,182)
Net realisations/(investment)	650	396	6	(1)	655
Balance sheet
Opening portfolio value at 1 April 2024	19,629	14,158	1,488	519	21,636
Additions2	1,318	768	4	1	1,323
Value disposed	(1,777)	(1,164)	(9)	-	(1,786)
Unrealised value movement	4,803	4,324	17	19	4,839
Foreign exchange and other movements	(415)	(255)	(8)	(10)	(433)
Closing portfolio value at 31 March 2025	23,558	17,831	1,492	529	25,579

1 Realised proceeds may differ from cash proceeds due to timing of cash receipts. During the year, Private Equity recognised £1,827 million of realised proceeds, of which £1 million related to withholding tax. In addition, £5 million of cash proceeds were received, which had been recognised as realised proceeds in FY2024.

2 Includes cash investment  and capitalised interest.

3 The total is the sum of Private Equity, Infrastructure and Scandlines, "Of which Action" is part of Private Equity.

2 Per share information

The calculation of basic net assets per share is based on the net assets and the number of shares in issue at the year end. When calculating the diluted net assets per share, the number of shares in issue is adjusted for the effect of all dilutive share awards. Dilutive share awards are equity awards with performance conditions attached, see Note 24 in our Annual report and accounts 2026.

	2026	2025
Net assets per share (£)
Basic	30.34	25.49
Diluted	30.30	25.42
Net assets (£m)
Net assets attributable to equity holders of the Company	30,887	24,611
	2026	2025
Number of shares in issue
Ordinary shares	1,024,702,777	973,398,978
Own shares	(6,813,218)	(7,979,305)
	1,017,889,559	965,419,673
Effect of dilutive potential ordinary shares
Share awards	1,475,671	2,665,677
Diluted shares	1,019,365,230	968,085,350

Further details on movements in ordinary shares and own shares are provided in Notes 17 and 18 of the Annual report and accounts 2026.

The calculation of basic earnings per share is based on the profit attributable to shareholders and the weighted average number of shares in issue. The weighted average shares in issue for the year to 31 March 2026 are 981,517,180 (2025: 965,214,237). When calculating the diluted earnings per share, the weighted average number of shares in issue is adjusted for the effect of all dilutive share awards. The diluted weighted average shares in issue for the year to 31 March 2026 are 982,927,508 (2025: 967,799,507).

	2026	2025
Earnings per share (pence)
Basic	539.4	522.0
Diluted	538.6	520.6
Earnings (£m)
Profit for the year attributable to equity holders of the Company	5,294	5,038

3 Dividends

	2026 pence per share	2026 £m	2025 pence per share	2025 £m
Declared and paid during the year
Ordinary shares
Second dividend	42.50	408	34.50	332
First dividend	36.50	357	30.50	293
	79.00	765	65.00	625
Proposed dividend	48.00	484	42.50	408

The Group introduced a simplified dividend policy in May 2018. In accordance with this policy, subject to maintaining a conservative balance sheet approach, the Group aims to maintain or grow the dividend each year. The first dividend has been set at 50% of the prior year's total dividend.

The dividend can be paid out of either the capital reserve or the revenue reserve subject to the investment trust rules, see Note 17 in our Annual report and accounts 2026 and the statement of changes in equity earlier in this document for details of reserves.

The distributable reserves of the Company are £11,234 million (31 March 2025: £10,488 million) and the Board reviews the distributable reserves bi-annually, including consideration of any material changes since the most recent audited accounts, ahead of proposing any dividend. The Board also reviews the proposed dividends in the context of the requirements of being an approved investment trust. Shareholders are given the opportunity to approve the total dividend for the year at the Company's Annual General Meeting. Details of the Group's continuing viability and going concern can be found in the Risk management section of our Annual report and accounts 2026.

15 large investments

The 15 investments listed below account for 95% of the portfolio at 31 March 2026 (31 March 2025: 93%). One portfolio company has been excluded due to commercial sensitivity. All investments have been assessed to establish whether they classify as accounting subsidiaries under IFRS and/or subsidiaries under the UK Companies Act. This assessment forms the basis of our disclosure of accounting subsidiaries in the financial statements.

The UK Companies Act defines a subsidiary based on voting rights, with a greater than 50% majority of voting rights resulting in an entity being classified as a subsidiary. IFRS 10 applies a wider test and, if a Group is exposed, or has rights to variable returns from its involvement with the investee and has the ability to affect these returns through its power over the investee then it has control, and hence the investee is deemed an accounting subsidiary. Controlled subsidiaries under IFRS are noted below. None of these investments are UK Companies Act subsidiaries.

In accordance with Part 5 of The Alternative Investment Fund Managers Regulations 2013 ("the Regulations"), 3i Investments plc, as AIFM, requires all controlled portfolio companies, with their registered offices in the United Kingdom, to make available to employees an annual report which meets the disclosure requirements of the Regulations. These are available either on the portfolio company's website or through filing with the relevant local authorities.

	Business line	Residual	Residual
	Geography	cost1	cost1	Valuation2	Valuation2
Investment	First invested in	March 2026	March 2025	March 2026	March 2025	Relevant transactions
Description of business	Valuation basis	£m	£m	£m	£m	in the year
Action*	Private Equity	4,443	1,877	23,743	17,831	£944 million of capital
General merchandise discount retailer	Netherlands					restructuring proceeds,
	2011					£246 million cash
	Earnings					dividends received and
						further investment of
						£2,566 million
Royal Sanders*	Private Equity	260	204	1,228	865	Further investment
Private label and contract manufacturing producer of personal care products	Netherlands					of £56 million.
	2018					Acquired Vendoleo
	Earnings					in December 2025
3i Infrastructure plc*	Infrastructure	305	305	897	856	£35 million dividend
Quoted investment company, investing in infrastructure	UK					received
	2007
	Quoted
Cirtec Medical*	Private Equity	172	172	573	614
Outsourced medical device manufacturing	US
	2017
	Earnings
Scandlines	Scandlines	531	531	571	529	£21 million dividend
Ferry operator between Denmark and Germany	Denmark/Germany					received
	2018
	DCF
AES	Private Equity	30	30	443	419	£10 million dividend
Manufacturer of mechanical seals and provider of reliability services	UK					received
	1996
	Earnings
Audley Travel*	Private Equity	393	338	425	276
Provider of experiential tailor-made travel	UK
	2015
	Earnings
Tato	Private Equity	2	2	379	382	£17 million dividend
Manufacturer and seller of specialty chemicals	UK					received
	1989
	Earnings
ten23 health*	Private Equity	220	183	315	250	Further investment of
Biologics focused CDMO	Switzerland					£37 million
	2021
	Other

SaniSure*	Private Equity	76	76	315	324
Manufacturer, distributor and integrator of single-use bioprocessing systems and components	US
	2019
	Earnings
European Bakery Group*	Private Equity	67	63	305	278	£8 million dividend
Industrial bakery group specialised in bake-off bread and snack products	Netherlands					recorded
	2021
	Earnings
Smarte Group*	Infrastructure	203	196	301	308	Acquired Lost & Found
Infrastructure concessionaire to airports and high-traffic venues, providing luggage carts, electronic lockers, mobility solutions, and ancillary services	US					Software in January 2026
	2017
	DCF
Luqom*	Private Equity	287	273	276	218
Online lighting specialist retailer	Germany
	2017
	Earnings
Q Holding*3	Private Equity	162	162	187	172
Manufacturer of catheter products serving the medical device market	US
	2014
	Earnings
WaterWipes*	Private Equity	121	121	121	117
Global, premium, natural wet wipe brand	Ireland
	2025
	Earnings
		7,272	4,533	30,079	23,439
* Controlled in accordance with IFRS.
1 Residual cost includes cash investment, non-cash investment and interest, net of cost disposed.
2 Valuation represents our unrealised value at the relevant date and does not include any realised proceeds or dividends received under our ownership.
3 The capital proceeds received in FY2023 from the partial disposal of the investment did not result in a reduction to the cost base.

List of Directors and their functions

The Directors of the Company and their functions are listed below:

David Hutchison, Chair

Simon Borrows, Chief Executive and Executive Director

James Hatchley, Group Finance Director and Executive Director

Jasi Halai, Chief Operating Officer and Executive Director

Stephen Daintith, Independent non-executive Director

Lesley Knox, Senior Independent non-executive Director

Coline McConville, Independent non-executive Director

Peter McKellar, Independent non-executive Director

Hemant Patel, Independent non-executive Director

Alexandra Schaapveld, Independent non-executive Director

By order of the Board

K J Dunn

Company Secretary

13 May 2026

Registered Office: 1 Knightsbridge, London, SW1X 7LX

Glossary

Alternative Investment Funds ("AIFs") At 31 March 2026, 3i Investments plc as AIFM, managed five AIFs. These were 3i Group plc, 3i Growth Capital B LP, 3i Growth Capital C LP, 3i Managed Infrastructure Acquisitions LP and 3i Infrastructure plc.

Alternative Investment Fund Manager ("AIFM") is the regulated manager of AIFs. Within 3i, these are 3i Investments plc.

Approved Investment Trust Company This is a particular UK tax status maintained by 3i Group plc, the parent company of 3i Group. An approved Investment Trust company is a UK company which meets certain conditions set out in the UK tax rules which include a requirement for the company to undertake portfolio investment activity that aims to spread investment risk and for the company's shares to be listed on an approved exchange. The "approved" status for an investment trust must be agreed by the UK tax authorities and its benefit is that certain profits of the company, principally its capital profits, are not taxable in the UK.

Assets under management ("AUM") A measure of the total assets that 3i has to invest or manages on behalf of shareholders and third-party investors for which it receives a fee. AUM is measured at fair value. In the absence of a third-party fund in Private Equity, it is not a measure of fee generating capability.

Board The Board of Directors of the Company.

CAGR is the compound annual growth rate.

Capital redemption reserve is established in respect of the redemption of the Company's ordinary shares.

Capital reserve recognises all profits and losses that are capital in nature or have been allocated to capital. Following changes to the Companies Act, the Company amended its Articles of Association at the 2012 Annual General Meeting to allow these profits to be distributable by way of a dividend.

Carried interest payable is accrued on the realised and unrealised profits generated taking relevant performance hurdles into consideration, assuming all investments were realised at the prevailing book value. Carried interest is only actually paid when the relevant performance hurdles are met and the accrual is discounted to reflect expected payment periods.

Carried interest receivable The Group earns a share of profits from funds which it manages on behalf of third parties. These profits are earned when the funds meet certain performance conditions and are paid by the fund once these conditions have been met on a cash basis. The carried interest receivable may be subject to clawback provisions if the performance of the fund deteriorates following carried interest being paid.

CDMO stands for a contract development and manufacturing organisation.

Company 3i Group plc.

DACH The region covering Austria, Germany and Switzerland.

DCF Discounted cash flow.

Discounting The reduction in present value at a given date of a future cash transaction at an assumed rate, using a discount factor reflecting the time value of money.

EBITDA is defined as earnings before interest, taxation, depreciation and amortisation and is used as the typical measure of portfolio company performance.

EBITDA multiple Calculated as the enterprise value over EBITDA, it is used to determine the value of a company.

Executive Committee The Executive Committee is responsible for the day-to-day running of the Group.

Fair value movements on investment entity subsidiaries The movement in the carrying value of Group subsidiaries, classified as investment entities under IFRS 10, between the start and end of the accounting period converted into sterling using the exchange rates at the date of the movement.

Fair value through profit or loss ("FVTPL") is an IFRS measurement basis permitted for assets and liabilities which meet certain criteria. Gains and losses on assets and liabilities measured as FVTPL are recognised directly in the Statement of comprehensive income.

Fee income (or Fees receivable) is earned for providing services to 3i's portfolio companies and predominantly falls into one of two categories. Negotiation and other transaction fees are earned for providing transaction related services. Monitoring and other ongoing service fees are earned for providing a range of services over a period of time.

Fees receivable from external funds are earned for providing management and advisory services to a variety of fund partnerships and other entities. Fees are typically calculated as a percentage of the cost or value of the assets managed during the year and are paid quarterly, based on the assets under management to date.

Foreign exchange on investments arises on investments made in currencies that are different from the functional currency of the Company. Investments are translated at the exchange rate ruling at the date of the transaction. At each subsequent reporting date investments are translated to sterling at the exchange rate ruling at that date.

Gross investment return ("GIR") includes profit and loss on realisations, increases and decreases in the value of the investments we hold at the end of a period, any income received from the investments such as interest, dividends and fee income, movements in the fair value of derivatives and foreign exchange movements. GIR is measured as a percentage of the opening portfolio value.

Interest income from investment portfolio is recognised as it accrues. When the fair value of an investment is assessed to be below the principal value of a loan, the Group recognises a provision against any interest accrued from the date of the assessment going forward until the investment is assessed to have recovered in value.

International Financial Reporting Standards ("IFRS") are accounting standards issued by the International Accounting Standards Board ("IASB"). The Group's consolidated financial statements are prepared in accordance with UK adopted international accounting standards.

Investment basis Accounts prepared assuming that IFRS 10 had not been introduced. Under this basis, we fair value portfolio companies at the level we believe provides useful comprehensive financial information. The commentary in the Strategic report refers to this basis as we believe it provides a more understandable view of our performance.

IRR Internal Rate of Return.

Key Performance Indicator ("KPI") is a measure by reference to which the development, performance or position of the Group can be measured effectively.

Like-for-like compare financial results in one period with those for the previous period.

Liquidity includes cash and cash equivalents (as per the Investment basis Consolidated cash flow statement) and undrawn RCF.

Money multiple is calculated as the cumulative distributions plus any residual value divided by paid-in capital.

Net asset value ("NAV") is a measure of the fair value of our proprietary investments and the net costs of operating the business.

Operating cash profit is the difference between our cash income (consisting of portfolio interest received, portfolio dividends received, portfolio fees received and fees received from external funds as per the Investment basis Consolidated cash flow statement) and our operating expenses and lease payments (as per the Investment basis Consolidated cash flow statement).

Operating profit includes gross investment return, management fee income generated from managing external funds, the costs of running our business, net interest payable, exchange movements, other income, carried interest and tax.

Organic growth is the growth a company achieves by increasing output and enhancing sales internally.

Performance fee receivable The Group earns a performance fee from the investment management services it provides to 3i Infrastructure plc ("3iN") when 3iN's total return for the year exceeds a specified threshold. This fee is calculated on an annual basis and paid in cash early in the next financial year.

Portfolio effect is the level of risk based on the diversity of the investment portfolio

Portfolio income is that which is directly related to the return from individual investments. It is comprised of dividend income, income from loans and receivables and fee income.

Proprietary Capital is shareholders' capital which is available to invest to generate profits.

Public Private Partnership ("PPP") is a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies.

Realised profits or losses over value on the disposal of investments is the difference between the fair value of the

consideration received, less any directly attributable costs, on the sale of equity and the repayment of loans and receivables and its carrying value at the start of the accounting period, converted into sterling using the exchange rates at the date of disposal.

Revenue reserve recognises all profits and losses that are revenue in nature or have been allocated to revenue.

Revolving Credit Facility ("RCF") The Group has access to a credit line which allows us to access funds when required to improve our liquidity.

Run-rate is a financial performance metric, which captures the future predicted growth of a portfolio company's financial performance.

Segmental reporting Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Executive who is considered to be the Group's chief operating decision maker. All transactions between business segments are conducted on an arm's length basis, with intrasegment revenue and costs being eliminated on consolidation. Income and expenses directly associated with each segment are included in determining business segment performance.

Share-based payment reserve is a reserve to recognise those amounts in retained earnings in respect of share-based payments.

SORP means the Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts.

Syndication is the sale of part of our investment in a portfolio company to a third party, usually within 12 months of our initial investment and for the purposes of facilitating investment by a co-investor or portfolio company management in line with our original investment plan. A syndication is treated as a negative investment rather than a realisation.

Total return comprises operating profit less tax charge less movement in actuarial valuation of the historic defined benefit pension scheme.

Total Shareholder Return ("TSR") is the measure of the overall return to shareholders and includes the movement in the share price and any dividends paid, assuming that all dividends are reinvested on their ex-dividend date.

Translation reserve comprises all exchange differences arising from the translation of the financial statements of international operations.

Unrealised profits or losses on the revaluation of investments is the movement in the carrying value of investments between the start and end of the accounting period converted into sterling using the exchange rates at the date of the movement.

 

END