Slide 1: Analyst meeting FY 2012/2013 - results
Analyst meeting FY 2012/2013 - results Brussels – 23 May 2013
Slide 2: 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 3: Introductory message by Chairman Urbain Vandeurzen
Introductory message by Chairman Urbain Vandeurzen
Slide 4: Gimvolution over time
Gimvolution over time • Executing the regional economic government policy 1980 (100% government controlled) • Minority positions • No active management • IPO (1997) leads to further professionalisation (government-stake drops to 70%) • Country & financial approach as main driver for value creation (
Slide 5: Gimvolution over time
Gimvolution over time • Government further builds down its stake to 27% (2005-2006) • Creating added value by applying both a financial and strategic approach, though still mainly financial product driven approach (2008-2012) • 2 business lines (buyouts, venture capital), complemented by infra joint
Slide 6: Gimv next
Gimvolution over time Gimv • Mega trends (globalisation, digitalisation, demographic changes, new consumer needs) next inspired future choices for Gimv • Internationalisation and specialisation are the drivers of a value enhancing platform strategy launched in 2012 • Focus on growth capital to suppo
Slide 7: 2012 was an intensive year of reflexion and repositioning
2012 was an intensive year of reflexion and repositioning • The board of directors enthousiastically worked together with the management and different teams to come to a multidimensional cross-country platform strategy inspired by macro-economic trends and societal challenges • By focusing on intern
Slide 8: Gimv: Building leading companies
Gimv Building leading companies.
Slide 9: Macro-economic context – Medio 2013 (1)
Macro-economic context – Medio 2013 (1) Global economic cycle remains weak • Industrial and consumer confidence remains week • US (modest) growth mainly depends on private consumption & capital investments • Japan: new monetary policy creates inflation expectations, weakens yen, but can it boost eco
Slide 10: Standard Deviation Global Purchasing Managers Index (PMI) from LT-average
Standard Deviation Global Purchasing Managers Index (PMI) from LT-average 2 1 0 -1 -2 -3 US EMU China -4 Source: KBC 10
Slide 11: Macro-economic context – Medio 2013 (2)
Macro-economic context – Medio 2013 (2) Europe: after 5 years of crisis… • Financial markets: “Fragile” • Structural economic challenges: “Huge” • Competitiveness problems (especially exporting industry - except Germany,…) • Continuously increasing sovereign debt • Unemployment increasing (historica
Slide 12: Youth unemployment - Towards a jobless generation?
Youth unemployment - Towards a jobless generation ? % 60 55 50 45 40 35 30 25 20 15 10 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 European Union (27 countries) Greece Spain Italy Source: Eurostat 12
Slide 13: Macro-economic context – Medio 2013 (3)
Macro-economic context – Medio 2013 (3) Belgian economy confronted with ‘unsustainable’ cost structure • Productivity: 2008-2012 : 0% to -2% p/a > In 5 years: -10% to -20% additional competitiveness loss !! • Industry “suffering”, especially those companies with: • High financial debt • Low exports
Slide 14: Macro-economic context and impact on valuation of Gimv's portfolio companies
Macro-economic context and impact on valuation of Gimv’s portfolio companies Gimv’s unrealised results FY 11/12 FY 12/13 Explaining the Δ EBITDA or Sales -4.1 -48.0 Pronounced impact of crisis Net Financial Debt 1.3 19.9 Lower debt levels as result of less investments and lower working capital needs
Slide 15: Gimv Group's results for FY 2012-2013
Gimv Group’s results for FY 2012-2013 by CEO Koen Dejonckheere
Slide 16: 1. Introduction
1. Introduction ss Gimv
Slide 17: Gimv's organisation today
Gimv’s organisation today: Multidimensional cross country platformstrategy • Consumer 2020 Companies with a clear vision on the needs and preferences of the future consumer • Health & Care Health and care solutions for the ageing, growing and health conscious society • Smart Industries Smart, techno
Slide 18: Gimv platform strategy up and running
Gimv platform strategy up and running Business model refined Organisation adapted Ambitious business plan for each team Ongoing: reinforcing the organisation with extra know-how, talent and skills complementing our current team & inspired by our strategic choices Today we stand ready -rooted
Slide 19: Key messages FY 2012/2013
Key messages FY 2012/2013 • Return on equity of 3.2% in difficult market circumstances • Substantial divestments of EUR 181 mio (strong realised results) • Divestments at 58.9% premium to NAV (=long term average) • Lower portfolio company results and drop in share price of limited number of sharehol
Slide 20: Key messages FY 2012/2013 (ctd)
Key messages FY 2012/2013 (ctd) • Portfolio value at EUR 814 mio • Important divestments generating substantial cashflow of EUR 181 mio (e.g. Accent, OGD, Devgen and Human Inference) • Investments of EUR 110 mio (e.g. ARS, Govecs, Prosonix and VCST) • Impact of difficult economic circumstances on pe
Slide 21: 2. Results FY 2012/2013
2. Results FY 2012/2013 0 Gimv
Slide 22: Profitable 2H despite economic turmoil
Profitable 2H despite economic turmoil – considerable divestments which equal FY11/12 IFRS FY 11/12 1H 12/13 2H 12/13 FY 12/13 Net group results -21.9 -8.0 40.7 32.7 Investments (balance sheet) 171.8 57.7 53.1 110.8 Investments (incl. FuM) 279.4 84.4 66.5 150.9 Divestments (balance sheet) 182.6 105.
Slide 23: Positive FY result reflects the strong portfolio realisations
Positive FY result reflects the strong portfolio realisations IFRS FY 11/12 1H 12/13 2H 12/13 FY 12/13 Realised gains & losses 61.3 35.5 29.4 64.9 Unrealised gains & losses + impairment losses -88.2 -48.9 13.7 -35.2 Other operating result 0.8 1.8 -4.1 -2.3 Financial income & cost 4.3 2.1 2.8 4.9 Tax
Slide 24: Realised capital gains and dividend/interest income lead to portfolio result
Realised capital gains and dividend/interest income lead to portfolio result of EUR 48.8 million Other Third Consumer Health & Smart Sustainable participati party Total 2020 Care Industries Cities ons funds Realised gains & losses 0.9 16.0 6.5 1.1 32.0 8.5 64.9 Unrealised gains & losses/impairm. -7.
Slide 25: Significant divestments boost realised result
Significant divestments boost realised result Investment details: Investment details: • 2006 - 2012 • 1997 – 2008 & 2011 - 2012 • Sold to Naxicap • Sold to Syngenta (OPA) • Return >> Gimv’s LT avg • Return >> Gimv’s LT avg Gimv’s added value: Gimv’s added value: • Support roll-out and buy & build st
Slide 26: Divestments of 58.9% uplift above opening book value
Divestments of 58.9% uplift above opening book value end March 2012 • Total proceeds from FY12/13 divestments : EUR 184.0 mio • Uplift on opening equity : 58.9 %, in line with historic average • Money-multiple of 1.3x reflects a mixed result versus original acquisition value Total uplift on opening
Slide 27: EUR -35.2 mio unrealised losses mainly due to negative economic impact
EUR -35.2 mio unrealised losses mainly due to negative economic impact on performance of portfolio companies 19.9 Net financial debt 11.1 First time uplift 9.6 Multiple 4.1 Other 1.3 Exchange rate 0.3 Third party funds -0.2 Imminent sale or IPO -1.6 Write down on loan -5.9 FuM -11.9 Listed -13.9 Up
Slide 28: Investment capacity remains strong
Investment capacity remains strong • Treasury end March 2013 : EUR 195.3 mio (EUR 183.4 mio at the end of March 2012) • Important cash income from successful divestments (i.e. Accent Jobs, OGD, Devgen, Human Inference) • Successful optional dividend last year resulted in a capital increase of EUR 24
Slide 29: NAV increases with EUR 1.7 per share in 2H 2012/2013
NAV increases with EUR 1.7 per share in 2H 2012/2013 FY 11/12 1H 12/13 2H 12/13 FY 12/13 EPS (group share) -0.95 -0.33 1.70 1.37 Equity (group share) 43.63 40.52 42.22 42.22 80 NAV 75 NAV + dividend 70 NAV + dividend reinvested • EUR 25.6 dividend 65 per share paid over 60 2002-2012 55 • Net return
Slide 30: 3. Equity
3. Equity 30
Slide 31: Stable NAV on top of attractive dividend in difficult markets
Stable NAV on top of attractive dividend in difficult markets 1100 24.6 1000 -56.8 32.8 900 1 011.3 1 011.8 800 700 Equity group (IFRS) Cap Increase Dividend Result FY12/13 Equity group 31/03/2012 31/03/2013 (in EUR mio) 31
Slide 32: 4. Portfolio
4. Portfolio 32
Slide 33: Portfolio value at > EUR 800 million
Portfolio value at > EUR 800 million – keeps Gimv’s balance sheet 80% invested 1100 94.0 1000 -129.2 8.6 900 110.8 -115.8 0.8 800 700 600 845.2 814.4 500 400 300 Portfolio Investments Capitalised Value Value Divestments Other Portfolio 31/03/2012 intrests increases decreases Portfolio 31/03/2013 val
Slide 34: Gimv's portfolio by platform and geography
Gimv’s portfolio by investment platform by geography 4% 4% 3% 22% 22% 13% 49% 8% 9% 6% 14% 17% 29% Belgium France Consumer 2020 Health & Care Germany The Netherlands Smart Industries Sustainable Cities Rest of Europe USA Third party funds Other shareholdings Rest of the world 34
Slide 35: Gimv's portfolio by valuation method and vintage
Gimv’s portfolio by valuation method by vintage* Weighted average EV/EBITDA-multiple: 4% 1% 5.3x 6% (after 24% discount) 18% 28% 25% 9% 4% 11% 10% 23% 18% 43% Multiple Third party funds ≤ 2000 2001-2003 Listed Loans 2004-2006 2007-2009 Cost Price last round ≥ 2010 Gimv managed funds Other *: related
Slide 36: Twenty largest investments spread over different platforms
Twenty largest investments spread over different platforms (based on NAV of 31 March 2013) Company Activity Platform Location Entry Professional visualisation systems Belgium 1981 Engine, driveline and technical components Belgium 2009 Frozen bakery and lipids Belgium 2009 Frozen & canned vegetables
Slide 37: Twenty largest investments (ctd)
Twenty largest investments (ctd) Company Activity Platform Location Entry Info & comparison travelsite France 2009 Green power Belgium 2008 Antibody technology Belgium 2001 Production of substrate for the cultivation of Belgium 2012 mushrooms Road works, asphalt works and sewerage Belgium 2008 Subto
Slide 38: Twenty largest investments (ctd)
Twenty largest investments (ctd) Company Activity Platform Location Entry Manufacturer of Continuously Variable Transmission Belgium 2009 systems Integrated solutions for Intelligent Transport Systems The Netherlands 2012 Wireless datacom technology The Netherlands 2006 High-tech medical diagnostics
Slide 39: Twenty largest investments (ctd)
Twenty largest investments (ctd) Company Activity Platform Location Entry User workspace management The Netherlands 2010 ICT services Belgium 2011 Online store design furniture France 2009 Smart card design France 2012 Catheters for cardiac rhythm disorders Switzerland 2009 Total NAV 20 largest inve
Slide 40: Third party funds: net cash generation confirmed
Third party funds: net cash generation confirmed • Drop in investments, increased distributions generate cash • Expected positive cashflows over the next years, to be re-invested in direct portfolio of the investment platforms 80 60 40 30.3 20 0 -20 -40 27.6 -60 1996 1997 1998 1999 2000 2001 2002 20
Slide 41: 5. Investment activities
5. Investment activities 7 Gimv
Slide 42: ARS T&TT
ARS T&TT www.ars.nl ARS T&TT, founded in 1998, is a leading player in the Netherlands in Intelligent Transport Systems (ITS). These integrated solutions include traffic monitoring, traffic management and tolling. The company employs 160 FTEs in total with its headquarters in The Hague (The Netherlan
Slide 43: Govecs
Govecs www.govecs.com Govecs is a leading European electric scooter company based in Munich (Germany). It dedicates itself to the development, production and distribution of electric vehicles. It was established in 2009 with the goal of offering clean, efficient, reliable an affordable vehicles for
Slide 44: Prosonix
Prosonix www.prosonix.co.uk Prosonix (Oxford, UK) is a specialty pharmaceutical company developing a portfolio of inhaled respiratory medicines of known and approved drugs, using its own particle engineering technology. INVESTMENT DETAILS • Gimv, together with a syndicate of life science investors i
Slide 45: ProxiAD
ProxiAD www.proxiad.com ProxiAD is a French IT services company specialised in the implementation of object and decision- making architectures, and providing IT consulting services. The Group is mainly operating in the finance & retail sectors and benefits from a regional presence and strong local p
Slide 46: VCST – framework for future growth
VCST – framework for future growth www.vcst.be Niche manufacturer of mission critical and high value added precision components (engine gears, transmission shafts & brake components) for the automotive sector. VCST is active in the European as well as in the North American market with factories in S
Slide 47: Agrosavfe
Agrosavfe www.agrosavfe.com AgroSavfe, a spin-off of VIB (Vlaams Instituut voor Biotechnologie) will focus on the research and development of innovative formulations of crop protection products by means of the Agrobody technology. AgroSavfe, located in the VIB Bio-incubator in the technology park in
Slide 48: Essar Ports
Essar Ports www.essar.com Essar Ports develops, owns and operates ports and terminals, and is India's second-largest private sector port and terminal company by capacity and throughput. The company's ports business is held by Essar Ports Limited (EPL), which is listed on the Bombay Stock Exchange an
Slide 49: 6. Dividend
6. Dividend 49
Slide 50: Dividend policy continued
Dividend policy continued • Gross dividend of EUR 2.45 to be approved by the AGM on 26 June 2013 • Gross yield of 6.3% (based on closing price of FY12/13) • Dividend policy: • ‘Not to lower the dividend and to increase it whenever sustainably possible (barring unforeseen circumstances)’ 2,5 2,0 1,5
Slide 51: Optional dividend
Optional dividend • Facility created by the EGM of June 2011 • To finance the further growth of Gimv and its portfolio • Shareholder has the option to choose between: • New shares • Payment in cash • A combination of shares and cash • Details to be published after the AGM of 26 June 2013 51
Slide 52: Questions & Answers
Questions & Answers ws Gimv
Slide 53: Annexes: Additional portfolio information
Annexes: Additional portfolio information 53
Slide 54: Equity matrix: diversified portfolio in about 75 portfolio companies
Equity matrix: diversified portfolio in about 75 portfolio companies Business Unit Net Consumer Health & Smart Sustainable Third party Other treasury & Equity Total 2020 Care Industries Cities funds participations other net group Region assets Belgium 94.1 30.0 171.9 92.1 4.9 9.1 402.1 France 63.1 -
Slide 55: Investments by platform (01/04/2012 – 31/03/2013)
Investments by platform (01/04/2012 – 31/03/2013) Business Unit Consumer Health & Smart Sustainable Third party Other Region 2020 Care Industries Cities funds participations Total Belgium 7.8 1.2 17.9 10.6 - 1.2 38.8 France - - 6.0 2.5 6.2 - 14.7 Netherlands - 0.7 3.8 12.7 - - 17.3 Germany - 0.4 5.1
Slide 56: Overview listed shareholdings 31/03/2013
Overview listed shareholdings 31/03/2013 (Gimv pro-rata holding) Company BB symbol Holding in % of shares Holding in n° of shares Ablynx ABLX BB 5.4% 2.625.911 Alfacam * ALFA BB 12.9% 1.139.782 Barco BAR BB 9.8% 1.249.921 CapMan CPMBV FH 10.0% 8.431.978 Ceres CERE US 5.7% 1.420.354 Electrawinds EWI
Slide 57: M&A activity in Europe
M&A activity in Europe Volume Average deal size (in USD billion) (in USD million) 350 250 300 200 250 150 200 150 100 100 50 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 All European M&A European Mid Market M&A A
Slide 58: Private Equity & Venture Capital activity in Europe
Private Equity & Venture Capital activity in Europe (in EUR billion) 90 80 70 60 50 40 30 20 10 0 2008 2009 2010 2011 2012* preliminary Fundraising Investments Divestments 58
Slide 59: Evolution of European private equity investments by number of companies
Evolution of European private equity investments by number of companies 59
Slide 60: Investor relations & media contact
• INVESTOR RELATIONS & MEDIA CONTACT Frank De Leenheer Inés Sylverans T +32 3 290 22 08 T +32 3 290 22 23 frank.deleenheer@gimv.com ines.sylverans@gimv.com