Innovation & technology isto be found in every companywe invest in
VFB – Kinepolis Antwerp – 25 March 2017
P-1176
1. Gimv at a glance -
Building leading companies
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4 investment platforms supported by 4 megatrends
Gimv at a glance - Building leading companies
1.2 EUR billion net asset value
37 years experience in Private Equity /
Venture Capital
11.8% annual IRR since inception
Euronext-listed since 1997
50 portfolio companies
Diversified access to unlisted growth companies
4 offices
Belgium, the Netherlands, France, Germany
4 investment platforms
Health & Care
Sustainable Cities
Consumer 2020
Smart Industries
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Connected Consumer
4
0
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Operational improvementhas become the major driver for value creation
Source: BCG, IESE, Goldman Sachs
18 2236
5131
46
39
5132 25
0%
20%
40%
60%
80%
100%
Leverage era (1980s) Multiple expansion era(1990s)
Earnings growth era(2000s)
Operational improvementera (2010s)
So
urc
eo
fV
alu
e
Operational improvement Multiple arbitrage Leverage
• PE industry more
competitive: deal
making and financial
engineering are
commodities
• Main value driver: from
leverage and multiple
arbitrage to operational
growth
• PE firms to provide
operational value to
remain competitive and
achieve superior returns.
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Value Creation Process
First100 days
Full PotentialProgram
KeyEvent
ExitValue
InvestmentLife Cycle
MaximizeExit Value
Turnaround
Acquisitions andIntegration
Run Full Potential Program/Performance Improvement
Run ShortTerm Program
Inve
stm
en
tR
etu
rn
DueDiligence
Time
Deal Qualification
100 day planAssessment of people
organization
Full Potential Meeting – Tracking of VCP
TemplatesMandatory
2. Gimv Group’s results for 1H 2016-2017
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On track to realise excellent results for 3rd
consecutive year
• Attractive realised results on exits
• Solid sales & ebitda growth in 2/3 of portfolio companies
• Portfolio return of 12.5% (non-annualised)
• Excellent half year result with above-average ROE
Favourable exit climate and continued portfolioexpansion
• Exits at record level
• Continued strong investment activity with 8 new investments in the first half• Portfolio of 50 dynamic companies
• Sound financial position
Key messages
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Excellent performance of our portfolio companies
Sales growth (*)
+9%
EBITDA growth (*)
+19 %
2/3 of portfolio ciesshow growth (*)
50 companies
with a value of
EUR 954 mio
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(*) 1H16 vs 1H15
The past 3 years we did EUR ~1.4 billion of transactions
154 130 153
437
332
227
364
923
0
250
500
750
1000
2014/2015 2015/2016 9m 2016/2017 ∑ 2014/2016
Investments Divestments
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Cost of divestments
2014/2015 2015/2016 9m 2016/2017 ∑ 2014/2016
3. Innovation & technology is to be found in every
company we invest in
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Welding reinvented
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• Dutch cy active in the development, application
and marketing of patented automated welding
technology, called the ‘ArpLas System’,
primarily used in the automotive market
• Gimv acquired a majority stake for ~EUR 10
million, next to the management who remains a
significant shareholder
INVESTMENT CASE
• Outperforms other technologies on aesthetics,
cost/energy efficiency and strength
• Increased number of car models being launched
and push for more lightweight materials
• High competitive advantage in aluminium
OPPORTUNITIES FOR VALUE CREATION• Further penetrate in existing markets, with
both existing and new customers• Developments on new materials in the
automotive market• Develop new systems for new
applications/markets• Gimv’s international footprint and expertise in
the automotive market• The company should be able to grow its
turnover to >EUR 20 million by 2020
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Old Mercedes commercial
Mackevision Mercedes commercial
One of the global leaders in Computer Generated
Imagery (3D visualization, animation & visual effects)
INVESTMENT CASE
• Operates in a market with clear growth potential, that
surfs on the trend of global digitalization and Industry
4.0
• Strategy implementation and transformation plan are
on track:
Profitable growth: geographic expansion and sales
acceleration
Productivity and performance improvement
Organize to win: management team in place
Master in virtual reality
-
20
40
60
2013/2014 2014/2015 2015/2016
Sales (in €m) +100%
VALUE CREATION
• Manage high growth trajectory
• Numerous business development opportunities
Focus is key
• New offices, capex & working capital
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0
200
400
600
2014 A 2015 A 2016 LE
FTE +68%
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Empowering ambitious entrepreneurs