Gimv Nv · EURONEXT:GIMB
Gimv Nv — H1 2015/2016 Earnings Presentation
49 slides from Gimv Nv's earnings presentation, Nov 19, 2015
Slide 1: Press conference / Analyst meeting 1H 2015/2016 - results
Press conference / Analyst meeting 1H 2015/2016 - results Brussels, 19 November 2015 P-1094
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 3 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 4: Gimv, building leading companies: a successful transformation that is ongoing
Gimv, building leading companies : a successful transformation… that is ongoing 1. Clarity of vision and direction: Through a strategy update, the platform focus has been further refined and the “digital premium” integrated across all platforms 2. Accelerated value creation in portfolio companies tr
Slide 5: Digital impact amplitude and speed ranges widely across various industries
Digital impact amplitude and speed ranges widely across various industries 5 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 6: Digital - beyond the what, there is also a where and how
Digital - beyond the what, there is also a where and how 6 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 7: Digital drivers & trends impacting the entire value chain
Digital drivers & trends impacting the entire value chain 7 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 8: The digital transformation of the industry - key digitization trends
The digital transformation of the industry - 8 key digitization trends 8 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 9: Industry 4.0 digitizes the entire industrial value chain
Industry 4.0 digitizes the entire industrial value chain 9 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 10: Healthcare's digital landscape is quickly becoming mind-boggling
Healthcare’s digital landscape is quickly becoming mind- boggling, with many new entrants everywhere 10 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 11: Gimv's approach to digital
Gimv’s approach to digital 1. ’Digital’ is relevant to all eco-systems and Gimv platforms as an integral part of every deal thesis 2. ’Digital’ assessment (lens) on all investments to evaluate: - Importance/stage of digital transformation as a threat (disruption) or an opportunity - The digital ‘rea
Slide 12: Gimv Group's results for 1H 2015-2016 by CEO Koen Dejonckheere
Gimv Group’s results for 1H 2015-2016 by CEO Koen Dejonckheere 12 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 13: Key messages
Key messages Results backed by strong portfolio performance • Solid sales & ebitda growth in majority of portfolio companies • Lead to strong Gimv results for the first semester • Continued value creation for shareholders Exit momentum & continued investments • Successful and sustained investments l
Slide 14: 1. Results backed by strong portfolio performance
1. Results backed by strong portfolio performance 14 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 15: Solid sales & EBITDA growth in majority of portfolio companies
Solid sales & EBITDA growth in majority of portfolio companies… Strong sales growth in 1H* Double digit EBITDA-growth * in €m in €m +20% 4500 +7% 4478 400 386 4250 4170 321 4000 300 3750 3500 200 3250 3000 100 LTM 31/12/2014 LTM 30/06/2015 LTM 31/12/2014 LTM 30/06/2015 • > 90% with positive sales gr
Slide 16: …lead to strong Gimv results for the first semester
…lead to strong Gimv results for the first semester Net profit Portfolio return EUR 65 mio +9 %(*) Equity (NAV) Return on equity EUR 1 096 mio 5.9%(*) EUR 43.1 per share (*) non-annualised returns 16 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 17: Return on equity of 5.9% driven by strong portfolio result
Return on equity of 5.9% driven by strong portfolio result Portfolio result of EUR 82.9 mio = 9% portfolio return 1200 10,5 -18,0 1150 45,6 -62,3 1100 26,8 0,4 1050 1000 950 1.092,6 1.094,9 1.095,6 900 850 800 Equity Net realised Net Dividend & Other results Dividend Change in Equity 31/3/2015 capit
Slide 18: 1/3 of portfolio result consists of realised gains, 36% uplift on exits
1/3 of portfolio result consists of realised gains 36% uplift on exits • Proceeds from 1H 2015-16 divestments (incl. income received): EUR 104.5 mio • Uplift on opening equity of 31 March 2015: 36% Total uplift on opening equity 140% 120% 100% 80% 60% 40% 20% 0% FY05 FY06/07 FY07/08 FY08/09 FY09/10
Slide 19: Sales and EBITDA growth most important driver for positive valuation result
Sales and EBITDA growth of portfolio companies most important driver for positive valuation result 1H 2015-16 • 51% of portfolio has a multiple- based valuation (=2/3 of the 77,2 Ebitda or Sales platform portfolio, i.e. excluding third-party funds) 9,8 3F • Weighted average EV/EBITDA- 5,1 Imminent S
Slide 20: Portfolio value stable: value increase compensates for exits
Portfolio value stable: value increase compensates for exits 1100 1000 -27,4 73,0 -76,6 20,1 900 -0,4 800 700 920,2 908,9 600 500 Portfolio Investments Value Value Divestments Other Portfolio 31/03/2015 increases decreases Portfolio value 30/09/2015 20 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 21: Sound financial position allows future growth
Sound financial position allows future growth • Treasury at EUR 208 mio cash • Important divestment activity outpacing investments in 1H 2015-16 • Cash-out dividend of EUR 62.3 mio • Available co-investment funds with LPs (remaining external commitments) : EUR 330 mio • Unused credit lines of EUR 20
Slide 22: Continued value creation for our shareholders
Continued value creation for our shareholders 1H 14/15 FY 14/15 1H 15/16 EPS (group share) 1.91 5.35 2.55 Equity (group share) 39.46 42.97 43.09 NAV per share (in EUR) 90 80 70 • EUR 27.8 dividend 60 per share paid over 50 2006-2015 40 • Return on equity for 1H15/16: 5.9% 30 20 2006 2007 2008 2009 2
Slide 23: 2. Continued exit momentum and focus on buy & build
2. Continued exit momentum and focus on buy & build 23 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 24: Successful and sustained investments lead to excellent realisations
Successful and sustained investments lead to excellent realisations Invested Divested EUR 20 mio EUR 103 mio (EUR 40 mio co-investment funds incl.) (EUR 150 mio co-investment fund incl.) 1 new investment + multiple add-on 8 exits investments 24 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 25: New investment: Unlock the strategic value of Biom'Up
New investment : Unlock the strategic value of Biom’Up OPPORTUNITIES FOR VALUE CREATION • Developer of medical devices based on biopolymers founded in 2005 (France) Strengthen Finance trials • EUR 6 mio in a total Series C financing of management for Hemoblast structure EUR 31 million INVESTMENT CAS
Slide 26: Add-on investment: Mackevision met growth milestones
Add-on investment : Mackevision met growth milestones VALUE CREATION • Manage high growth trajectory • Numerous business development opportunities Focus is key • New offices, capex & working capital One of the global leaders in Computer Generated Imagery (3D visualization, Sales (in €m) animation
Slide 27: Continued exit momentum & interest of industrial buyers
Continued exit momentum & interest of industrial buyers • May 2015 – full exit • June 2015 – full exit • Sept 2015 – full exit • April 2015 – full exit • Acertys Group acquired • Gimv sells its participation • More than a year after the • Gimv sold its stake in IT by the Belgian company in Easyvoyag
Slide 28: 3. Investment strategy geared to value creation
3. Investment strategy geared to value creation 28 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 29: Investment strategy focused on growth acceleration and benefiting from megatrends
Investment strategy focused on growth acceleration and benefiting from megatrends Deal thesis: growth acceleration by International Organic growth Buy & Build Focused platforms expansion Vandemoortele Connected UDB Consumer Greenyard Foods Teads Almaviva Health & Care Eurocep
Slide 30: Buy & Build – How Almaviva Santé doubled in size
Buy & Build – How Almaviva Santé doubled in size in a rapidly changing & challenging French healthcare market INVESTMENT CASE • One of the larger private hospital groups in France • High quality care combined with an efficient delivery model in an increasingly budget constrained environment • Nurtur
Slide 31: International expansion – Punch Powertrain
International expansion – Punch Powertrain or the growth journey of an innovative emerging markets player Turnover (in €m) 200 CAGR: 35% FTE 800 150 X2.5 Spectacular growth 600 100 since 2010 400 50 200 - 0 2010 2014 1H 2015 2010 2015 Sint-Truiden China Expansion in China & ambitious 5 year investme
Slide 32: 4. Wrap-up
4. Wrap-up 32 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 33: Key conclusions
Key conclusions Growth in portfolio companies lead to strong half year results Continued realisations in liquid markets Solid financial position enables growth ambition Investment strategy geared towards value creation with diversified drivers for growth 33 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 34: Questions & Answers
Questions & Answers 34 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 35: Annexes: Additional information
Annexes: Additional information 35 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 36: Twenty largest investments > rank 1 to 5
Twenty largest investments spread over different platforms make up 55% of portfolio (based on NAV of 30 September 2015) > rank 1 to 5 Company Activity Platform Location Entry Engine, driveline and technical components Belgium 2009 Frozen bakery and lipids Belgium 2009 Independent beer group The Neth
Slide 37: Twenty largest investments (ctd) > rank 6 to 10
Twenty largest investments (ctd) > rank 6 to 10 Company Activity Platform Location Entry Wall covering producer Belgium 2007 Variable transmission systems Belgium 2010 Video advertising on social and premium media France 2011 Women’s underwear France 2014 3D visualization, animation and visual effec
Slide 38: Twenty largest investments (ctd) > rank 11 to 15
Twenty largest investments (ctd) > rank 11 to 15 Company Activity Platform Location Entry User workspace management The Netherlands 2010 Transport & logistic services Belgium 2014 Production of substrate for the cultivation of Belgium 2012 mushrooms Provider of Geospatial Awareness software Belgium
Slide 39: Twenty largest investments (ctd) > rank 16 to 20
Twenty largest investments (ctd) > rank 16 to 20 Company Activity Platform Location Entry Chemical industry, production of household cleaning France 2012 products Software solutions company focused on utilities Belgium 2013 sector Online telephony shop France 2010 Online store for design furniture F
Slide 40: Profitable divestments and increased results lead to EUR 65 million results in 1H 2015/16
Profitable divestments and increased results portfolio companies lead to EUR 65 million results in 1H 2015/16 IFRS 1H 14/15 2H 14/15 FY 14/15 1H 15/16 Net group results 48.5 87.5 136.0 64.9 Investments (balance sheet) 28.4 125.9 154.3 20.1 Investments (incl. FuM) 44.5 146.5 191.0 40.1 Divestments (b
Slide 41: Equity matrix: diversified portfolio of ~50 companies
Equity matrix: diversified portfolio ~ 50 companies Business Unit Net Other Connected Health & Smart Sustainable Third party treasury & Equity participations Total Consumer Care Industries Cities funds other net group (incl. infra) Region assets Belgium 120.9 5.0 138.7 54.6 5.7 41.8 366.6 France 90.
Slide 42: Portfolio build-up over the past years is gradually paying off
Portfolio build-up over the past years is gradually paying off 350 91,8 300 250 16,9 200 38,3 39,2 56,5 18,6 26,5 150 20,6 258,5 70,4 46,6 3,8 52,3 24,1 31,4 55,3 4,7 4,3 50,0 193,7 100 8,1 12,7 13,7 153,4 56,1 3,2 136,4 45,8 138,3 26,7 133,6 123,7 125,9 122,2 16,7 3,4 17,5 105,3 103,3 17,8 98,5 96,
Slide 43: Solid portfolio return driven by valuation increase and realised gains
Solid portfolio return driven by valuation increase and realised gains Connected Health & Smart Sustainable Other Total Consumer Care Industries Cities portfolio* Realised gains & losses 4.1 16.5 0.2 -0.5 6.5 26.8 Unrealised gains & losses/impairm. 6.6 3.2 27.0 -0.9 9.8 45.6 Dividends/interests 3.0
Slide 44: Balanced portfolio of 48 companies
Balanced portfolio of 48 companies 2% 24% 31% 12% 9% 22% Connected Consumer Health & Care Smart Industries Sustainable Cities Third party funds Other shareholdings 44 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 45: Young portfolio: >50% was newly invested in the past 5 years
Young portfolio: >50% was newly invested in the past 5 years Weighted by valuation method average by vintage** 1% EV/EBITDA-ratio: 4% 2% 6.1x 2% 1% 14% 8% 5% (after 25% discount)* 51% 13% 33% 43% 23% Multiple Third party funds Cost Listed ≤ 2003 2004-2006 2007-2009 Loans Price last round 2010-2013 ≥
Slide 46: Weighted average multiple at 6,1x
Weighted average multiple at 6,1x • Stable ebitda multiple after discount • Average discount at 25% 7,00 30% 6,00 25% 5,00 20% 4,00 15% 3,00 10% 2,00 5% 1,00 0,00 0% 03/2014 06/2014 09/2014 12/2014 03/2015 06/2015 09/2015 EV/Ebitda (weighted average) Discount to peer group 46 RESULTS 1H 2015-2016 (1
Slide 47: European M&A activity
European M&A activity M&A-activity in Europe Volume (in USD billion) Average deal size (in USD million) 350 200 180 300 160 250 140 120 200 100 150 80 100 60 40 50 20 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 All
Slide 48: Buyout-backed exits increased across all channels in 2014
Buyout-backed exits increased across all channels in 2014 48 RESULTS 1H 2015-2016 (19 NOVEMBER 2015)
Slide 49: Contact
CONTACT Frank De Leenheer T +32 3 290 22 08 frank.deleenheer@gimv.com Inés Sylverans T +32 3 290 22 23 ines.sylverans@gimv.com Belgium The Netherlands France Germany Gimv NV Gimv Nederland Holding BV Gimv France SAS Gimv Karel Oomsstraat 37 Groenhovenstraat 2 38, avenue Hoche Promenadeplatz 12 2018