Slide 1: Press conference / Analyst meeting FY 2017/2018 - results
Press conference / Analyst meeting FY 2017/2018 - results Brussels, 24 May 2018 P-1225
Slide 2: Gimv Group's results FY 2017-2018
Gimv Group’s results FY 2017-2018 CEO Koen Dejonckheere CFO Kristof Vande Capelle 2 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 3: FY results marked by profitable exits and record investments
FY results marked by profitable exits and record investments Result supported by strong portfolio performance • Portfolio return above target, with strong trading at our portfolio companies • Record investment activity, with 12 new portfolio companies, leading to a younger portfolio of about EUR 1 b
Slide 4: 1. FY results supported by strong portfolio performance
1. FY results supported by strong portfolio performance 4 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 5: Key messages results
Key messages results Portfolio return above target, with strong trading at our portfolio companies High industrial appetite results in successful exits with attractive capital gains Record investment activity, with 12 new companies being added, leads to younger portfolio FY results illustrate anothe
Slide 6: Portfolio return again above target with strong trading at our portfolio companies
Portfolio return again above target with strong trading at our portfolio companies • Gross portfolio return of 16% • Portfolio result of EUR 150.4 million • Above-target for the 4th consecutive year • Platform porfolio return of 19% • High industrial appetite results in successful exits • Consistent
Slide 7: Cutting edge technology
Cutting edge technology 7 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 8: Taking advantage of high industrial appetite to seize realisations
Taking advantage of high industrial appetite to seize realisations with strong realised gains Total exit proceeds of EUR 371.1 million 8 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 9: Organic growth and buy & build
Organic growth and buy & build • Founded about 40 years ago • Benelux and UK-market leader (production, installation and maintenance) in the area of daylight access, fire safety and ventilation solutions for commercial and industrial buildings • Gimv acquired a majority stake in 2015 INVESTMENT CASE
Slide 10: Joint ambitions to implement a growth strategy
Joint ambitions to implement a growth strategy • Founded in 1994 • 3D visualization, animation and visual effects (VFX) for images, films and interactive applications • Award-winning company employing >550 people in its offices in Germany, US, UK, South Korea, China and Japan • Gimv acquired a major
Slide 11: Pro-active and ambitious investment strategy leads to record investments
Pro-active and ambitious investment strategy leads to record investments MVZ Holding • Several existing portfolio companies benefited from a follow-on investment: Biom’Up, Incendin, Jenavalve, Melijoe, Tinc and Topas Therapeutics • Leading to record investments of EUR 246.2 million • 1 new investmen
Slide 12: Nuts about nuts
Nuts about nuts • Established in 2010, employing >100 people in two modern production facilities in The Netherlands • 2nd largest player in the Dutch private label market for nuts & seeds • One-stop-shop and customized solutions for retailers and B2B • Gimv acquired a majority stake, next to the man
Slide 13: Dose your pills and take a deep breath for the next leap
Dose your pills and take a deep breath for the next leap • French specialist of plastic medical devices for the healthcare industry • Gimv and Mérieux Développement together acquired a majority stake, next to the management team • Employs >90 people on a new industrial site • Turnover 2017/2018: EUR
Slide 14: FY results illustrate another solid year
FY results illustrate another solid year Portfolio return Net profit 15.6% EUR 107.1 mio Equity (NAV) EUR 1 274 mio 43% uplift on exits EUR 50.1 per share 14 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 15: Realised capital gains drive above-average portfolio return
Realised capital gains drive above-average portfolio return Portfolio result of EUR 150.4 mio = 15.6% annualised portfolio return 1 500 1 400 24,3 12,7 -33,6 113,4 1 300 -63,6 -12,1 1 200 1 100 1 274,3 1 000 1 233,2 900 800 Equity Net realised Dividends & Net unrealised Other Dividends paid Change i
Slide 16: Growth portfolio companies main driver for unrealised results
Growth portfolio companies main driver for unrealised results – lower multiples after a weaker start of 2018 on the stock-markets 36,4 Ebitda or Sales 1,9 Weighted average EV/EBITDA-ratio: 7.1x Net Financial Debt (after 27% discount) 0,9 Imminent sale 0,1 First Time Valuation -1,6 Exchange Rate -1,6
Slide 17: Long-term uplift on exits confirmed
Long-term uplift on exits confirmed • Proceeds from FY 2017-18 divestments (incl. income received): EUR 373.6 million • Uplift on opening equity of 31 March 2017: 42.6% 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 FY
Slide 18: IRR of 9.3% over the past 5 years
IRR of 9.3% over the past 5 years 18 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 19: Our sound financial position allows to fund our ambitions
Our sound financial position allows to fund our ambitions Net treasury 31 March 2018 EUR 381 mio Net treasury 31 March 2017 EUR 314 mio Divestments EUR 371 mio Dividend (EUR 64 mio) Investments (EUR 246 mio) Net expenses from operations Dividends, interest income & other payments (EUR 34 mio) EUR 39
Slide 20: 2. The European private equity market into perspective
2. The European private equity market into perspective 20 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 21: Private Equity in Europe near peak: Fundraising, Investments & Divestments at cost
Private Equity in Europe near peak: Fundraising, Investments & Divestments at cost € bn Source: Invest Europe / Thomson Reuters (2000-2006) & Invest Europe / EDC (2007-2017) 21 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 22: Lower Mid-Market investments are on the rise
Lower Mid-Market investments are on the rise Source: Invest Europe/EDC 22 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 23: Default rates are back at historically low levels
Default rates are back at historically low levels 23 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 24: Leverage levels are on the rise
Leverage levels are on the rise Source: LCD Capital IQ LCD / PwC 24 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 25: Covenant-light is back
Covenant-light is back Source: LCD Capital IQ LCD / PwC 25 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 26: How does Gimv deal with this market?
How does Gimv deal with this market? • A focused platform strategy as competitive differentiator • Continued efforts on (pro)active deal sourcing (50%) and creating intimacy with management to find sweet spot investment opportunities • Remain selective by investing growth equity in entrepreneurial c
Slide 27: Growth accounts for 87% of value creation on exits
Growth accounts for 87% of value creation on exits Value Drivers – data sample exits 1200 116 1079 Value Created in EUR m (Gimv level) 664 -18 1000 800 +763 600 1079 980 400 316 200 316 0 Entry total value Growth Multiple arbitrage Deleveraging Exit total value • Value creation of EUR 763 million th
Slide 28: 3. Wrap up
3. Wrap up 28 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 29: Key conclusions
Key conclusions Portfolio return again above target Record investments and industry-driven exits in all platforms Full year results illustrate another solid year Specialisation and pro-activity key in today’s markets Growth is key driver for Gimv’s value creation 29 RESULTS FY 2017-2018 (24 MAY 2018
Slide 30: Questions & Answers
Questions & Answers 30 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 31: Annexes: Additional information
Annexes: Additional information 31 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 32: Total investment portfolio increases to EUR 1 billion
Total investment portfolio increases to EUR 1 billion 1400,0 1300,0 87,4 -74,8 1200,0 1100,0 246,2 -262,0 1000,0 0,0 900,0 800,0 963,6 960,4 700,0 600,0 500,0 31/03/2017 Investments Value increases Value Divestments Other 31/03/2018 decreases Portfolio value (in EUR million) 32 RESULTS FY 2017-2018
Slide 33: Twenty largest investments make up 58% of portfolio (rank 1 to 5)
Twenty largest investments make up 58% of portfolio (based on NAV of 31 March 2018) > rank 1 to 5 Company Activity Platform Location Entry HVAC solutions in residential renovation and new The Netherlands 2016 build markets Wall covering producer Belgium 2007 Independent beer group The Netherlands 20
Slide 34: Twenty largest investments (ctd) rank 6 to 10
Twenty largest investments (ctd) > rank 6 to 10 Company Activity Platform Location Entry Specialised staffing agency Belgium 2018 Premium baby strollers The Netherlands 2016 Medical device company active in spine surgery Switzerland 2016 Software solution company Belgium 2013 Plastic pallet pooling
Slide 35: Twenty largest investments (ctd) rank 11 to 15
Twenty largest investments (ctd) > rank 11 to 15 Company Activity Platform Location Entry Roll and flatbed digital cutting machines Belgium 2016 Eco-friendly flame retardant additives Belgium 2014 Road safety equipment Germany 2017 Production and distribution of pet care products France 2018 Leading
Slide 36: Twenty largest investments (ctd) rank 16 to 20
Twenty largest investments (ctd) > rank 16 to 20 Company Activity Platform Location Entry Leading supplier of airbag components The Netherlands 2017 Thermal resorts France 2018 Transport & logistic services Belgium 2014 Inspection and certification services for buildings France 2016 Medical plastics
Slide 37: Strong industrial buyers' appetite lead to strong FY result of EUR 107 mio
Strong industrial buyers’ appetite and increased results portfolio companies lead to strong FY result of EUR 107 mio IFRS FY 16/17 1H 17/18 2H 17/18 FY 17/18 Net group results 131,9 62,6 44,4 107,1 Investments (balance sheet) 179,6 77,6 168,6 246,2 Investments (incl. FuM) 195,8 83,5 211,9 295,3 Dive
Slide 38: Equity matrix: diversified portfolio with 54 companies
Equity matrix: diversified portfolio with 54 companies Net Business Unit Third Other Connected Health & Smart Sustainable treasury & Equity party participations Total Consumer Care Industries Cities other net group Region funds (incl. infra) assets Belgium 84,9 13,8 81,7 87,7 9,3 63,0 340,2 France 6
Slide 39: EUR 900 million of investment and almost EUR 1.4 billion of exits over five years
EUR 900 million of investment and almost EUR 1.4 billion of exits over the past five years 450 400 300,7 350 23,9 300 250 16,9 200 43,3 18,6 12,7 20,6 29,7 56,5 150 12,3 46,6 22,9 5,9 13,7 100 3,5 12,8 17,5 17,8 116 28,416,1 77,6 50 123,7 138,3 125,9 193,7 103,3 110,1 123,9 341,8 168,6 284,2 20 20,1
Slide 40: Above-average portfolio return for the 4th consecutive year
Above-average portfolio return for the 4th consecutive year – platform portfolio return at 19% Connected Health & Smart Sustainable Other Total Consumer Care Industries Cities portfolio(i) Realised gains & losses 8,3 26,2 53,7 17,3 8,0 113,4 Unrealised gains & losses/impairm. 17,5 -6,6 -5,0 11,4 -4,
Slide 41: 54 portfolio companies with a value of about EUR 1 billion
54 portfolio companies with a value of about EUR 1 billion 7% 14% 29% 20% 16% 14% Connected Consumer Health & Care Smart Industries Sustainable Cities Third party funds Other shareholdings (incl. infra) 41 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 42: A younger portfolio with promising growth potential
A younger portfolio with promising growth potential by valuation method by vintage** 3% 2% Weighted average 3% 5% EV/EBITDA-ratio: 7.1x (after 27% discount)* 10% 21% 48% 48% 18% 9% 19% 14% Multiple 3F Cost ≤ 2006 2007-2009 2010-2012 Loans Listed Price last round 2013-2015 ≥ 2016 Other * With average
Slide 43: 54 companies with a value of about EUR 1 billion
54 companies with a value of about EUR 1 billion 43 RESULTS FY 2017-2018 (24 MAY 2018)
Slide 44: Disclaimer
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Slide 45: 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