Gimv Nv · EURONEXT:GIMB
Gimv Nv — H1 2017/2018 Earnings Presentation
47 slides from Gimv Nv's earnings presentation, Nov 23, 2017
Slide 1: Press conference / Analyst meeting 1H 2017/2018 - results
Press conference / Analyst meeting 1H 2017/2018 - results Brussels, 23 November 2017 P-1202
Slide 2: Gimv Group's results 1H 2017-2018 by CEO and CFO
Gimv Group’s results 1H 2017-2018 by CEO Koen Dejonckheere & CFO Kristof Vande Capelle 2 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 3: 1H results supported by strong trading of portfolio companies and profitable exits
1H results supported by strong trading of portfolio companies and profitable exits Result again supported by strong portfolio performance • Portfolio return again well-above target, with strong trading at our portfolio companies • Continued investment activity in all platforms leading to portfolio >
Slide 4: 1. 1H results again supported by strong portfolio performance and profitable exits
1. 1H results again supported by strong portfolio performance and profitable exits 4 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 5: Key messages results
Key messages results Portfolio return again well-above target, with strong trading at our portfolio companies High industrial appetite results in successful exits and continued investment activity in all platforms 1H results bode well for another strong year 5 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 6: Portfolio return again above target
Portfolio return again above target • Annualised gross portfolio return of 17.2% • Portfolio result of EUR 82.6 million = 1/3 realised – 2/3 unrealised • Above-target, like the previous 3 years • Consistent solid performance (revenues and EBITDA) in majority of our portfolio companies Growing Sales
Slide 7: Strong industrial appetite results in successful exits
Strong industrial appetite results in successful exits … • Taking advantage of the seller’s market to seize 3 full realisations … • 4 partial realisations • Leading to total exits of EUR 87.0 mio • 3 further exits took place after the close of the first half 7 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 8: Expansion through buy & build
Expansion through buy & build • Founded in 2007 by CEO Bruno Marie with 2012 TODAY the acquisition of one hospital in Marseille • Had grown into a small group of seven private Revenues (in EUR m) 100 >300 clinics in the PACA-region when Gimv (incl. Clinics 7 30 the Gimv Health & Care Fund) and UI Ge
Slide 9: Building strategic technological value
Building strategic technological value • Spin-off from the University KU Leuven • Advanced visual analytics for next-generation geospatial systems • Gimv and Gimv-Arkiv Tech Fund II acquired a majority stake in June 2013 • Nasdaq-listed Hexagon acquired the company in October 2017, resulting in an a
Slide 10: Continued investment activity in all platforms leading to a portfolio above EUR 1 billion
… and meanwhile we see continued investment activity in all platforms leading to a portfolio above EUR 1 billion • Continued and disciplined investment stategy adds 5 new investments to the portfolio MVZ Holding • 3 existing portfolio companies received a follow-on investment: Biom’Up, Jenavalve and
Slide 11: Thriving in a digital world
Thriving in a digital world • Belgian fast-growing IT-company with focus OPPORTUNITIES FOR VALUE CREATION on mid-sized companies • (Geographical) market share expansion • Gimv acquired a 23.6%-stake, next to the • Continued rollout of outsourcing offering management and LRM • Disciplined buy-and-bui
Slide 12: Achtung: Straßenarbeiten !
Achtung: Straβenarbeiten ! • German full-range provider of passive road OPPORTUNITIES FOR VALUE CREATION safety equipment • Strengthen core business • Gimv acquired a significant majority stake, • Internationalisation of sales next to the management team • Expansion of scope of activities through IN
Slide 13: 1H results bode well for another strong year
1H results bode well for another strong year Annualised Net profit portfolio return EUR 62.6 mio 17.2% Equity (NAV) Annualised EUR 1 233 mio return on equity EUR 48.5 per share 10.2% 13 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 14: Annualised ROE of 10.2% driven by strong portfolio result
Annualised ROE of 10.2% driven by strong portfolio result Portfolio result of EUR 82.6 mio = 17.2% annualised portfolio return 1 400 -16,3 1 300 56,5 15,1 11,0 -63,6 1 200 -3,3 1 100 1 233,2 1 232,6 1 000 900 800 Equity Net realised Dividends & Net unrealised Other results Dividends paid Change in E
Slide 15: Unrealised results driven by upcoming exits and portfolio performance
Unrealised results driven by upcoming exits and portfolio performance 47,3 Imminent Sale 11,8 Ebitda or Sales 8,0 3F (incl. cy impact) 2,8 Weighted average EV/EBITDA-ratio: 7.1x Multiple (after 27% discount) 1,5 First Time Valuation 0,6 Listed -0,7 Write down -1,1 Exchange Rate -5,1 Other -8,6 Net F
Slide 16: Uplift on exits confirmed
Uplift on exits confirmed • Proceeds from 1H 2017-18 divestments (incl. income received): EUR 88.3 mio • Uplift on opening equity of 31 March 2017: 10.1% Total uplift on opening equity 140% 120% 100% 80% 60% 40% 20% 0% FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 1H17/18 1
Slide 17: Our sound financial position offers flexibility and investment power
Our sound financial position offers flexibility and investment power Net treasury 31 March 2017 EUR 314 mio Net treasury 30 Sept 2017 EUR 287 mio Dividend (EUR 64 mio) Divestments Investments EUR 87 mio (EUR 78 mio) Dividend- and interest income & escrow payments EUR 35 mio Net expenses & taxes (EUR
Slide 18: 2. How to make the difference in a seller's market?
2. How to make the difference in a seller’s market? 18 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 19: Private Equity in Europe: Fundraising, Investments & Divestments at cost
Private Equity in Europe: Fundraising, Investments & Divestments at cost € bn 120 112 100 82 83 78 80 74 72 71 59 59 60 52 53 54 53 50 48 47 46 46 46 46 42 43 40 41 40 38 40 35 37 35 33 28 29 30 30 27 28 27 27 26 25 25 24 26 26 20 20 20 22 20 20 14 16 15 12 14 10 9 11 7 9 6 0 1997 1998 1999 2000 200
Slide 20: Lower Mid-Market investments are on the rise
Lower Mid-Market investments are on the rise Buyout investments in Europe by equity amount bracket Amount invested (€ billion) Number of companies 70 1 000 900 % domestic 60 Equity amount 800 bracket per 50 transaction 700 Mega (> €300m) Amount 18% 600 40 (EUR billion) 2,0 Large (€150m- 27% 500 €300
Slide 21: How deep is the European buyout market?
How deep is the European buyout market? SMALL MID-MARKET LARGE LOWER CORE UPPER LARGE MEGA Average equity amount invested 2.9 6.6 4.2 3.5 8.1 7.3 per year (€bn) 2012-2016 Average number of firms making 283 162 52 27 33 15 investments per year 2012-2016 Average number of 39 16 29 companies per year 2
Slide 22: Valuations are high
Valuations are high Indice Argos Mid-Market Evolution of the EV/EBITDA historic, 6 months rolling basis 15 – 150 mio EUR 15 – 500 mio EUR Competition from: • New funds • Larger funds • Other strategic buyers • Family Offices (direct) • Small and Mid cap M&A • … Avg. entry multiple Gimv 22 RESULTS 1H
Slide 23: Debt multiples have not reached again the peak of 2007
Debt multiples have not reached again the peak of 2007 Debt/EBITDA Credit Stats for buyouts (based upon pro forma financials) 7 6,5 6 5,5 5 4,5 4 3,5 3 2,5 Avg. Gimv 2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H17 Debt/EBITDA Senior Debt/EBITDA Source: LCD, an offering of S&P
Slide 24: Are we prepared?
Are we prepared? • A focused platform strategy that is up and running • Continued efforts on (pro)active deal sourcing and creating intimacy with management to find sweet spot investment opportunities • Remain selective by investing growth equity in entrepreneurial companies, determine value creatio
Slide 25: Overall, growth is the main value driver in Gimv's portfolio
Overall, growth is the main value driver in Gimv’s portfolio Value Drivers - Overall Data Sample 1600 Value Created at Gimv level in EUR m +747 -34 1 307 +11 8 9 1200 +726 800 13 5 581 400 22 0 Entry Total Growth Multiple Deleveraging Exit Total portf ∑35 13 Value Expansion Value exits companies • P
Slide 26: Exits account 83% of value creation, growth is key driver
Exits account 83% of value creation, growth is key driver for both exits and current portfolio Value Drivers - Exits Only Value Drivers - Portfolio Only 1000 700 Value Created in EUR m (Gimv level) +68 +8 834 600 +219 -103 800 +528 500 +3 473 600 400 +121 +605 352 300 400 229 200 200 100 0 0 Entry T
Slide 27: 3. A fit-for-the-future company builder
3. A fit-for-the-future company builder 27 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 28: A fit-for-the-future organisation
A fit-for-the-future organisation • Focused and inspired platform approach • International next-generation platform teams • With a lean Executive Committee • Strong and fast commercial approach • Clear & light reporting and decision structures • All focus on our core : invest & add value 28 RESULTS
Slide 29: The Executive Committee: lean and close to the business
The Executive Committee: lean and close to the business Koen Dejonckheere (CEO) Tom Van de Voorde Bart Diels (Head Smart Industries) (Head Health & Care) Dirk Dewals (Head Connected Consumer) Edmond Bastijns (CLO) Erik Mampaey (Head Sustainable Cities) Kristof Vande Capelle (CFO) 29 RESULTS 1H 2017-
Slide 30: 4. Wrap-up
4. Wrap-up 30 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 31: Key conclusions
Key conclusions Portfolio return again well-above target Continued new investments and industry-driven exit activity in all platforms First half results bode well for another strong year Specialisation, selectivity and pro-activity key in today’s markets Growth is key driver for Gimv’s value creatio
Slide 32: Questions & Answers
Questions & Answers 32 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 33: Annexes: Additional information
Annexes: Additional information 33 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 34: Total investment portfolio increases to EUR 1 billion
Total investment portfolio increases to EUR 1 billion 1200,0 -36,0 1100,0 92,5 -80,1 -9,9 1000,0 77,6 900,0 800,0 1007,6 963,6 700,0 600,0 500,0 31/03/2017 Investments Value increases Value Divestments Other 30/09/2017 decreases Portfolio value (in EUR mio) 34 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 35: Twenty largest investments make up 58% of portfolio (rank 1 to 5)
Twenty largest investments make up 58% of portfolio (based on NAV of 30 September 2017) > rank 1 to 5 Company Activity Platform Location Entry Specialised clinics France 2013 HVAC solutions in residential renovation and new The Netherlands 2016 build markets Wall covering producer Belgium 2007 Provi
Slide 36: Twenty largest investments (ctd) rank 6 to 10
Twenty largest investments (ctd) > rank 6 to 10 Company Activity Platform Location Entry 3D visualization, animation and visual effects Germany 2014 Solutions for glass daylight constructions, The Netherlands 2015 ventilation & fire safety systems Production of substrate for the cultivation of The N
Slide 37: Twenty largest investments (ctd) rank 11 to 15
Twenty largest investments (ctd) > rank 11 to 15 Company Activity Platform Location Entry Plastic pallet pooling Belgium 2016 Inspection and certification services for buildings France 2016 Medical device company active in spine surgery Switzerland 2016 Software solution company Belgium 2013 Roll an
Slide 38: Twenty largest investments (ctd) rank 16 to 20
Twenty largest investments (ctd) > rank 16 to 20 Company Activity Platform Location Entry Leading nut supplier The Netherlands 2017 Transport & logistic services Belgium 2014 Leading supplier of airbag components The Netherlands 2017 Provider of business and IT transformation software France 2016 Sp
Slide 39: Growth at portfolio companies and strong industrial buyers' appetite lead to strong 1H result
Growth at portfolio companies and strong industrial buyers’ appetite lead to excellent portfolio performance and strong 1H result of EUR 63 mio IFRS 1H 16/17 2H 16/17 FY 16/17 1H 17/18 Net group results 85,1 46,8 131,9 62,6 Investments (balance sheet) 116,0 63,6 179,6 77,6 Investments (incl. FuM) 12
Slide 40: Equity matrix: diversified portfolio with 53 companies
Equity matrix: diversified portfolio with 53 companies Net Business Unit Third Other Connected Health & Smart Sustainable treasury & Equity party participations Total Region Consumer Care Industries Cities other net group funds (incl. infra) assets Belgium 57,7 13,2 111,6 80,3 6,3 55,1 324,4 France
Slide 41: Continued strong investment and exit activity in all platforms
Continued strong investment and exit activity in all platforms 450 400 300,7 350 300 250 16,9 200 18,6 12,7 20,6 29,7 56,5 150 12,3 24,1 46,6 22,9 13,7 100 5,9 50 26,7 3,5 12,8 17,5 3,4 17,8 116 20 28,416,1 50 123,7 138,3 125,9 193,7 103,3 110,1 123,9 341,8 105,3 63,6 52,5 77,6 87,0 57,7 53,1 75,4 7
Slide 42: Above-average portfolio return driven by consistent strong performance
Above-average portfolio return driven by consistent strong performance portfolio companies and high industrial appetite leading to successful exits Connected Health & Smart Sustainable Other Total Consumer Care Industries Cities portfolio(i) Realised gains & losses 6.5 0.3 1.1 0.4 2.7 11.0 Unrealise
Slide 43: 53 portfolio companies with a value of EUR 1 billion
53 portfolio companies with a value of EUR 1 billion 6% 21% 18% 16% 19% 20% Connected Consumer Health & Care Smart Industries Sustainable Cities Third party funds Other shareholdings (incl. infra) 43 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 44: Younger portfolio: 1/3 was newly invested over the past 2 years
Younger portfolio: 1/3 was newly invested over the past 2 years by valuation method Weighted average by vintage** EV/EBITDA-ratio: 7.1x 3% 2% (after 27% discount)* 3% 4% 8% 31% 24% 42% 9% 7% 14% 35% 18% Multiple 3F Cost ≤ 2006 2007-2009 2010-2012 Imminent sale Loan Listed 2013-2015 ≥ 2016 Price last
Slide 45: 53 companies with a value of EUR 1 billion
53 companies with a value of EUR 1 billion 45 RESULTS 1H 2017-2018 (23 NOVEMBER 2017)
Slide 46: Disclaimer
Disclaimer • This document is being provided to you solely for your information. It is confidential, is not intended for distribution to the press or other media, and may not be reproduced or redistributed by mail, facsimile, electronic or computer transmission or by any other means to any other per
Slide 47: Contact
CONTACT Frank De Leenheer T +32 3 290 22 08 frank.deleenheer@gimv.com Belgium The Netherlands France Germany Gimv nv Gimv Nederland Holding BV Gimv France SAS Gimv Karel Oomsstraat 37 Berlage-Huis 83, rue Lauriston Promenadeplatz 12 2018 Antwerpen Groenhovenstraat 2 75116 Paris 80333 München T +32 3