DOCSLIB.ORG

GP Investments

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

1 GP Investments Earnings Release Fourth Quarter 2020 Earnings Release 2Q18 2 2020 highlights March 31, 2021 – This release reports the 4Q20 and full-year results of GP Investments, Ltd. (‘GP’) [B3: GPIV33], a leader in private equity and alternative investments. 2020 was a challenging year worldwide; and for GP Investments this was no different. At the beginning of the Covid-19 pandemic, most of the companies in GP’s portfolio that have physical premises had to close facilities or operate under restrictions. Brick-and-mortar stores had to be closed, restaurants had to depend mostly on delivery and take-out, and many businesses had to be reinvented fast. In March, GP moved 100% of its team members, across all its offices, to remote working, following procedures in its Business Continuity Plan. The transition to a work-at-home model was seamless, with no interruptions in our activities, and we have continued to leverage multiple digital technologies to enable our teamwork. The results reported by GP Investments in 2020 reflected the volatility of the financial markets, and the economic impacts of the pandemic. In the 4th quarter of 2020, GP posted net income of USD 33.8 million, which was driven by increases in the share prices of our listed companies – primarily Centauro – as well as the positive impact of the temporary BRL appreciation. Nevertheless, for the full year, mark-to-market adjustments in the companies in the portfolio have translated into significant net unrealized losses, which together with the rapid devaluation of the Brazilian Real have led to a total net loss of USD (91.8) million in 2020. Despite the difficulties created by the pandemic, GP has been able to offer extensive support to the management teams leading our portfolio companies, while at the same time leveraging its resources to pursue new investments and take advantage of opportunities created by market dislocations and accelerated digitalization across industries. Highlights of the year include: 1. On June 5, 2020, Centauro raised BRL 900 million in a follow-on offering, priced at BRL 30.00 per share. The company used the proceeds mainly in the acquisitions of (i) the Brazilian operations of Nike, and (ii) NWB (Network Brasil) – a sports content producer that owns the sports-related YouTube channels Desimpedidos and Acelerados, among other operations. 2. Expanding our portfolio of tech-enabled businesses, GP concluded, in the first quarter, an investment in Blu, a Brazilian fintech focused on reducing transaction costs between retailers and suppliers. In the second quarter, GP invested in sim;paul, a brokerage platform that is redesigning the way the financial market relates to the customer. In the third quarter, a new investment was made in CERC, a company that provides the underlying infrastructure of credit financial markets. Recently, in the first quarter of 2021, the investment in Mercado Bitcoin was made – the company is the largest digital assets platform in Latin America. 3. In September, an organizational restructuring was announced: GP Investments and Spice PE contributed their high- growth assets to create G2D Investments, Ltd (‘G2D’), a vehicle that will target primarily minority investments in tech-enabled companies that have developed disruptive technologies and operate in large addressable markets, led by outstanding management teams, and with clear competitive advantages. G2D is exploring an initial public offering (“IPO”) and has submitted preliminary documents to the Brazilian Securities and Exchange Commission. About GP Investments GP Investments is a leading private equity and alternative investments firm. Since its founding in 1993, it has raised USD 5 billion from investors worldwide, completed investments in more than 50 companies, and executed over 25 equity capital market transactions. GP Investments has a consistent and disciplined investment strategy targeting established companies that have the potential to grow and to be more efficient and profitable by becoming leaders in their industries. Since 2006, the Class A shares of GP Investments have traded in the form of Brazilian Depositary Receipts (BDRs) on the Brazilian Stock Exchange (B3 S.A. – Brasil, Bolsa, Balcão), under the ticker GPIV33, and on the Luxembourg Stock Exchange. The firm currently has offices in São Paulo, New York, London and Bermuda. For more information, please see www.gp-investments.com GP Investments 3 GP Investments – Portfolio Overview GP Investments has a diversified portfolio of companies held directly or indirectly through affiliated vehicles that are managed by GP and have significant influence on their investee companies. Each investment vehicle focuses on specific strategies, mainly differentiated by company size, geography, and sectors. Spice Private Equity Ltd (‘Spice PE’) is an investment company focused on global private equity investments. GP Investments became the controlling shareholder of Spice PE, listed on the SIX Swiss Exchange (SPCE), , using proprietary capital as part of its strategy of pursuing a portfolio of companies with global leadership ambitions. 4Q20 update At the end of 4Q20 Spice PE reported Net Asset Value of USD 136.8 million, up 18.1% when compared to 3Q20, and its balance sheet comprised: cash & cash equivalents (19% of total NAV); direct investments (74%); and the Legacy Portfolio (7%). Its balance sheet is debt-free. The increase in NAV mainly reflects the appreciation of the shares of Rimini Street, which is listed on NASDAQ, in the quarter and the FMV reassessments made in private companies. In July 2020, GP Investments and Spice PE created G2D Investments, Ltd (‘G2D’), a new investment vehicle focused on companies that have developed disruptive technologies. G2D will primarily target minority investments in tech enabled companies operating in large addressable markets, led by outstanding management teams, and with clear competitive advantages. G2D was born with a geographically diversified portfolio and with platforms that allow it to pursue new investment opportunities in companies headquartered in Europe, the United States and Brazil. As of December/20, G2D Investments’ portfolio comprised: Blu, The Craftory, Expanding Capital, Quero Educação, CERC and sim;paul. GP Investments 4 The Publicly Listed Portfolio – Performance GP’s portfolio of publicly listed companies this quarter had a positive contribution of USD 13.8 million (excluding the FX impact) resulting in a fair market value (“FMV”) within GP’s 4Q20 results as shown in the quarter below: LTM Share Performance (in local currency¹) Base: Dec. 2019 = 100. 150 1. BR Properties (BRPR3) and Centauro (CNTO3) are priced in Brazilian Reais, while Rimini Street (RMNI) is priced in U.S. Dollars. 140 130 120 113 110 100 90 81 80 70 66 60 50 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Centauro BRPR Rimini Street 1. BR Properties (BRPR3) and Centauro (CNTO3) are priced in Brazilian Reais, while Rimini Street (RMNI) is priced in U.S. Dollars. GP Investments 5 GP Investments portfolio: Centauro Date of investment Investment vehicle November 2012 GPCP V Industry Asset liquidity Sporting Goods Retail Publicly traded Centauro (B3: CNTO3) is Latin America’s largest retailer of sporting goods. Founded in April 1981 in Belo Horizonte, Minas Gerais, Brazil, it now operates nearly 200 stores across 22 of Brazil’s 27 states. The stores are designed as ‘temples for sports’, aiming to offer customers not only products but an outstanding experience in sports shopping. Centauro focuses on making technology an increasingly important element in this experience. The backbone of this technological strategy is supported by wholly integrated on-line and off-line sales and support operations. 4Q20 update The company’s performance improved in 4Q20 driven by its digital strategy. In 2020, same-store sales (‘SSS’) were down 28.6% from 2019. E-commerce sales alone, on the SSS basis, were up 74.5% from 2019. Sales through the App were 48% of the digital platform sales in 2020. In September, Centauro signed a contract with NWB (Network Brasil) – a sports content producer that owns the sports-related YouTube channels Desimpedidos and Acelerados, among others. Since it started operating in 2013, NWB has had more than 10 billion views, and currently has the largest audience base in the sports entertainment market in Brazil. The acquisition was approved by the Brazilian antitrust authority, CADE, and the closing has already taken place. In November, CADE also approved the Nike transaction. Nike’s Brazilian operating company was renamed Fisia and is now a wholly owned subsidiary of Centauro’s parent company, Grupo SBF. The partnership agreement establishes Fisia as: (i) the exclusive distributor of Nike products in Brazil, and the operator of its e-commerce, until 2030; and (ii) the Nike Store Partner, authorized to open and operate further Nike stores in Brazil for an initial period of 5 years. GP Investments 6 GP Investments portfolio: BR Properties Date of investment Investment vehicle June 2016 GPCP VI Industry Asset liquidity Commercial real estate Publicly traded BR Properties (B3: BRPR3) is one of Brazil’s leading commercial real estate investment companies. It operates in acquisition, rental, management, development and sale of commercial real estate, primarily in the high-end segment, including offices and warehouses (both logistics and industrial) in Brazil’s main metropolitan areas. 4Q20 update BR Properties (‘BRPR’) is continuously working on improving its occupancy rates, operational efficiency, and capital structure. In 2020, net revenues were BRL 313.6 million, 11% higher on a same-properties basis than in 2019. Same-properties Ebitda was BRL 227.9 million, 19% higher than in 2019, with Ebitda margin of 73%. Physical vacancy at the end of January 2021 was 19.9%. Due to the optimization of its capital structure over recent years, BRPR reduced financial expenses by 83% from 2019 to 2020. As a result FFO in 2020, at BRL 189.4 million, was 234% higher than in 2019.
Recommended publications
  • Private Equity 05.23.12

    Private Equity 05.23.12

    This document is being provided for the exclusive use of SABRINA WILLMER at BLOOMBERG/ NEWSROOM: NEW YORK 05.23.12 Private Equity www.bloombergbriefs.com BRIEF NEWS, ANALYSIS AND COMMENTARY CVC Joins Firms Seeking Boom-Era Size Funds QUOTE OF THE WEEK BY SABRINA WILLMER CVC Capital Partners Ltd. hopes its next European buyout fund will nearly match its predecessor, a 10.75 billion euro ($13.6 billion) fund that closed in 2009, according to two “I think it would be helpful people familiar with the situation. That will make it one of the largest private equity funds if Putin stopped wandering currently seeking capital. One person said that CVC European Equity Partners VI LP will likely aim to raise 10 around bare-chested.” billion euros. The firm hasn’t yet sent out marketing materials. Two people said they expect it to do so — Janusz Heath, managing director of in the second half. Mary Zimmerman, an outside spokeswoman for CVC Capital, declined Capital Dynamics, speaking at the EMPEA to comment. conference on how Russia might help its reputation and attract more private equity The London-based firm would join only a few other firms that have closed or are try- investment. See page 4 ing to raise new funds of similar size to the mega funds raised during the buyout boom. Leonard Green & Partners’s sixth fund is expected to close shortly on more than $6 billion, more than the $5.3 billion its last fund closed on in 2007. Advent International MEETING TO WATCH Corp. is targeting 7 billion euros for its seventh fund, larger than its last fund, and War- burg Pincus LLC has a $12 billion target on Warburg Pincus Private Equity XI LP, the NEW JERSEY STATE INVESTMENT same goal as its predecessor.
  • LAZARD GROUP LLC (Exact Name of Registrant As Specified in Its Charter)

    LAZARD GROUP LLC (Exact Name of Registrant As Specified in Its Charter)

    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2008 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 333-126751 (Commission File Number) LAZARD GROUP LLC (Exact name of registrant as specified in its charter) Delaware 51-0278097 (State or Other Jurisdiction of Incorporation (I.R.S. Employer Identification No.) or Organization) 30 Rockefeller Plaza New York, NY 10020 (Address of principal executive offices) Registrant’s telephone number: (212) 632-6000 Securities Registered Pursuant to Section 12(b) of the Act: None Securities Registered Pursuant to Section 12(g) of the Act: None Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐ Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
  • Longleaf Partners International Fund Commentary 2Q21

    Longleaf Partners International Fund Commentary 2Q21

    July 2021 Longleaf Partners International Fund Commentary 2Q21 Longleaf Partners International Fund added 1.19% in the quarter and 8.00% year-to- date, trailing the MSCI EAFE Index’s 5.17% and 8.83% for the same periods. US markets continued the monetary liquidity fueled run to ever sillier valuation levels, while non-US lagged relatively. The majority of our holdings were positive in the quarter. The Fund’s exposure to China and Hong Kong (including Netherlands-listed Prosus, whose business is driven by the Chinese consumer) was the biggest geographic headwind. FX was a moderate contributor to the Fund, as well as the MSCI EAFE index. Despite relative underperformance, it was a solid period for value per share growth at our holdings. “Value” had a (we believe temporary) pullback vs. “growth” in the second quarter on the back of lower interest rates and various other factors. Over the last year, we have seen interest rate consensus go from “low rates forever” for most of 2020 to “rates are definitely going up” in February/March of 2021 to what now feels like magical goldilocks thinking for growth stocks in the 1-2% US 10-year range. While we cannot predict precisely what rates will do in the near term, we welcome increased volatility on this all- Average Annual Total Returns for the Longleaf Partners International Fund (6/30/21): Since Inception (10/26/98): 7.45%, Ten Year: 4.50%, Five Year: 10.64%, One Year: 34.82%. Average Annual Total Returns for the MSCI EAFE (6/30/21): Since Inception (10/26/98): 5.62%, Ten Year: 5.89%, Five Year: 10.28%, One Year: 32.35%.
  • Lazard Global Active Funds Plc

    Lazard Global Active Funds Plc

    Lazard Global Active Funds plc Interim Report and Unaudited Financial Statements For the period ended 30 September 2014 Contents Directors and Other Information .................................................................................... 4 Investment Managers’ Reports ...................................................................................... 5 Financial Statements C Profit and Loss Account ...................................................................................... 36 L Balance Sheet ..................................................................................................... 44 Statement of Changes in Net Assets attributable to Redeemable Participating Shareholders .................................................................................. 50 Notes to the Financial Statements ............................................................................... 67 Portfolios of Investments ............................................................................................. 80 CTIVE FUNDS P Supplemental Information A L Statements of Major Changes in Investments .................................................. 115 OBA L LAZARD G Lazard Global Active Funds plc Period ended 30 September 2014 3 Directors and Other Information Registered Office Investment Managers (continued) First Floor Lazard Gulf Limited Fitzwilton House Dubai International Financial Centre Wilton Place Level 2, Gate Village 1 Dublin 2 Sheikh Zayed Road Street IRELAND P.O. Box 506644 Manager DUBAI Lazard Fund Managers (Ireland)
  • Lazard Global Active Funds Plc

    Lazard Global Active Funds Plc

    Lazard Global Active Funds plc Interim Report and Unaudited Financial Statements For the financial period ended 30 September 2015 Contents Directors and Other Information .................................................................................... 4 Investment Managers’ Reports ...................................................................................... 6 Statement of Comprehensive Income ......................................................................... 40 Statement of Financial Position ................................................................................... 46 Statement of Changes in Net Assets attributable to Redeemable Participating Shareholders ........................................................................................... 52 Notes to the Financial Statements ............................................................................... 58 Portfolios of Investments ............................................................................................. 92 Statements of Major Changes in Investments ........................................................... 126 LAZARD GLOBAL ACTIVE FUNDS PLC Lazard Global Active Funds plc Period ended 30 September 2015 3 Directors and Other Information Registered Office Investment Managers (continued) 6th Floor Lazard Gulf Limited 2 Grand Canal Square Dubai International Financial Centre Dublin 2 Level 2, Gate Village 1 IRELAND Sheikh Zayed Road Street Manager P.O. Box 506644 DUBAI Lazard Fund Managers (Ireland) Limited 6th Floor Lazard MENA Fund
  • Lazard Global Active Funds Plc

    Lazard Global Active Funds Plc

    Lazard Global Active Funds plc Interim Report and Unaudited Financial Statements For the financial period ended 30 September 2017 Contents Directors and Other Information .................................................................................... 4 Investment Managers’ Reports ...................................................................................... 6 Statement of Comprehensive Income ......................................................................... 36 Statement of Financial Position ................................................................................... 42 Statement of Changes in Net Assets attributable to Redeemable Participating Shareholders ........................................................................................... 48 Notes to the Financial Statements ............................................................................... 54 Portfolios of Investments ............................................................................................. 87 Statements of Major Changes in Investments ........................................................... 121 LAZARD GLOBAL ACTIVE FUNDS PLC Lazard Global Active Funds plc Financial period ended 30 September 2017 3 Directors and Other Information Registered Office Investment Managers (continued) 6th Floor Lazard Asset Management (Deutschland) GmbH 2 Grand Canal Square Neue Mainzer Strasse 75 Dublin 2 60311 Frankfurt am Main D02 A342 GERMANY IRELAND Registration Number: 247292 Lazard Sterling High Quality Bond Fund Manager Lazard
  • Brazil Insight

    Brazil Insight

    Insight Brazil An Overview of Trends in Select Sectors and Markets May 2010 Country Snapshot* razil’s economic performance over the last two years has inspired tre- mendous optimism among investors circling Latin America’s largest 2009 Population: 191.5 million % of Population Under 15 Beconomy for opportunities. While the impact of the global financial cri- Years-old: 28% sis cannot be understated — Brazil’s economy shrank in 2009 for the first time 2010 Nominal GDP: US$1.9 trillion since 1992 — the speed and magnitude of the country’s recovery can already 2009 Real GDP Growth: -0.2% be measured. The International Monetary Fund projects that Brazil’s econ- 2010 Real GDP Growth: 5.5% omy will grow 5.5% in 2010. A testament to investor confidence, credit rating 2009 Average Inflation:4.9% agency Moody's followed the other two rating agencies in upgrading the coun- *All data projected. try’s sovereign debt rating in September 2009. The confidence in Brazil’s future Source: International Monetary Fund, Population Reference Bureau. is echoed by institutional investors. For the second year in a row, Brazil ranked as the second most attractive emerging market for private equity investment in the 2010 EMPEA / Coller Capital Emerging Markets Private Equity Survey. Brazil’s appeal as an investment destination rests on stable government policies and a rapidly growing middle class, which has grown from 38% of the population in 2003 to 49% in 2010 according to the Getulio Vargas Foundation. An exciting calendar of global sporting events is also accel- erating interest in the market.
  • PIMCO BRAVO Fund III Overview

    PIMCO BRAVO Fund III Overview

    PIMCO BRAVO Fund III Fund Summary Sector: Special Situations Strategy: Cross Asset Sub-Strategy: Global Cross Asset Firm Overview PIMCO (the “GP”) is one of the largest investment management firms in the world with approximately $1.5 trillion in assets under management and 2,220 employees. The majority of its assets are run in its traditional fixed income strategies though the GP also has meaningful businesses in alternatives, equities and real return strategies. PIMCO was founded by Bill Gross and others in 1971 in Newport Beach as a subsidiary of Pacific Life Insurance Company, managing separate accounts for the firm’s institutional clients. From its founding through the 1990’s PIMCO was primarily focused on managing traditional fixed income funds and accounts. In 2000, it was purchased by Allianz but continued to operate as a mostly autonomous entity, expanding its alternatives investment management business starting in 2002 with the launch of a macro relative value strategy. Fund Summary General Partner PIMCO Sector Special Situations Strategy Cross Asset Sub-Strategy Global Cross Asset Main Office New York Geography Global Target Size $3-4 billion target ($5 billion hard cap) Management Fees 1.5% on invested capital Carried Interest 20% November 18, 2016: $820 mm Closing Schedule: December 30, 2016: $380 mm March 24, 2017: TBD Investment Period 3 years (final close) Extensions None specific Harvest Period PIMCO Extensions Special Situations Strategy PIMCO’s BRAVO investment strategy is among the more recent strategies launched at PIMCO with BRAVO I having first launched in 2011. The first fund had been launched to take advantage of NPL sales and bank recapitalization opportunities (BRAVO is an acronym for “bank recapitalization and value opportunities”).
  • Agenda Investment Advisory Council (IAC)

    Agenda Investment Advisory Council (IAC)

    Agenda Investment Advisory Council (IAC) Tuesday, March 30, 2021, 1:00 P.M.* Hermitage Room, First Floor 1801 Hermitage Blvd., Tallahassee, FL 32308 1:00 – 1:05 P.M. 1. Welcome/Call to Order/Election of Vinny Olmstead, Chair Officers/Approval of Minutes (See Attachments 1A – 1B) (Action Required) 1:05 – 1:25 P.M. 2. Opening Remarks/Legislative Update/ Ash Williams Reports/Other Updates & Reports Executive Director & CIO (See Attachments 2A – 2E) Executive Staff 1:25 – 2:10 P.M. 3. Florida Growth Fund Investment Hamilton Lane Review Nayef Perry (See Attachments 3A – 3B) Ankur Dadhania Katie Moore Benjamin Eckroth J.P. Morgan Robert Cousin Tyler Jayroe Patrick Miller 2:10 – 3:10 P.M. 4. Real Estate Review Steve Spook, SIO (See Attachments 4A – 4B) Lynne Gray, Senior Portfolio Manager Michael Fogliano, Senior Portfolio Manager Townsend Group Richard Brown Seth Marcus Investment Advisory Council – Agenda March 31, 2020 Page 2 3:10 – 3:40 P.M. 5. Corporate Governance Review Michael McCauley (See Attachment 5A – 5B) Senior Officer, Investment Programs & Governance 3:40 – 4:40 P.M. 6. Asset Class SIO Update s Tim Taylor, SIO DC Programs Chief Update Global Equity (See Attachments 6A – 6E) Katy Wojciechowski, SIO Fixed Income John Bradley, SIO Private Equity Trent Webster, SIO Strategic Investments Daniel Beard, Chief Defined Contribution Programs 4:40 – 4:50 P.M. 7. Review Changes to Florida Retirement Ash Williams System Investment Plan Investment Executive Director & CIO Policy Statement (See Attachments 7A – 7B) (Action Required) 4:50 – 5:00 P.M. 8. Review Changes to Florida PRIME Ash Williams Investment Policy Statement Executive Director & CIO (See Attachments 8A – 8B) (Action Required) 5:00 – 5:15 P.M.
  • Private Equity in Brazil

    Private Equity in Brazil

    JUNE 2019 Private Equity in Brazil 1 The Brazilian Private Equity and Venture Capital Association is a non-profit organization that promotes the development of private equity, venture capital and seed capital in Brazil, by improving industry conditions and understandings, while also fomenting good practices that are aligned with international industry standards. The Brazilian Trade and Investment Promotion Agency (Apex-Brasil) works to promote Brazilian products and services abroad, and to attract foreign investment to strategic sectors in Brazil. The Agency carries out several trade promotion initiatives, such as commercial and prospective missions, business rounds, support to the participation of Brazilian companies in major business fairs, and visits of foreign buyers and opinion formers to assess the country’s productive structure. Apex-Brasil also plays a key role in attracting foreign direct investment to Brazil, working to detect business opportunities, promoting strategic events and providing support to foreign investors interested in allocating resources in the country. The InBrazil Private Equity & Venture Capital Program is a joint initiative between ABVCAP and Apex-Brasil, set up to keep international investors well informed, linking them up with Brazilian fund managers and portfolio companies. The main goal of the program is to inform and empower the global investor community about the PE-VC ecosystem in Brazil, spotlighting its many opportunities. 2 Industry Overview This report offers a general overview of the private equity indus- try in Brazil. Through data, analyses and interviews with some of Brazil’s leading players, this publication outlines the main trends for this sector, together with the outlook for the next few years.
  • Brazilan Overview of Trends in Select Sectors and Markets June 2009

    Brazilan Overview of Trends in Select Sectors and Markets June 2009

    Photo by Gabriel de Andrade Fernandes by Photo BrazilAn Overview of Trends in Select Sectors and Markets June 2009 Country Snapshot razil continues to dominate Latin America’s private equity scene, drawing over 80% of the region’s fundraising capital and 40% of its investment dollars in 2009 Population: 194 million* 2008. The country’s large domestic market, diverse economic base and abun- B % of Population Under 15 Years-old: 28% dant natural resources have attracted private equity investors who continue to see Brazil 2009 GDP: US$1.3 billion* as home to a number of highly attractive investment opportunities in the midst of the 2009 GDP Growth: -1.3%* current global economic crisis. Over half of all Brazilians are earning an income that 2010 GDP Growth: 2.2%* places them in the middle-class bracket, which has translated into growing consumer Foreign Exchange Reserves as of May 2009: purchasing power, rising retail demand and increasing infrastructure needs. In addition, US$190 billion Brazil has recently achieved investment-grade status from two of the three leading rating *Projected. agencies, further supporting investor confidence. Source: International Monetary Fund, Population The Brazilian economy was hard hit in the last quarter of 2008 due to slumped com- Reference Bureau. modity prices and low industrial production. Contracting 3.6% in comparison to the prior quarter, 2008 year-end represented the biggest decline in Brazil’s GDP since 1996. In the first quarter of 2009, Brazil’s GDP showed signs of improvement, shrinking by just 0.8%. The International Monetary Fund (IMF) projects that Brazil’s real GDP will fall by 1.3% for the remainder of this year before returning to growth in 2010.
  • GP Investments, Ltd

    GP Investments, Ltd

    GP Investments, Ltd. Consolidated Financial Statements as of and for The Year Ended December 31, 2020 and Independent Auditor’s Report Deloitte Touche Tohmatsu Auditores Independentes Deloitte Touche Tohmatsu Dr. Chucri Zaidan Avenue, 1.240 ‐ 4th to 12th floors ‐ Golden Tower 04711‐130 ‐ São Paulo ‐ SP Brazil Tel.: + 55 (11) 5186‐1000 Fax: + 55 (11) 5181‐2911 www.deloitte.com.br INDEPENDENT AUDITOR'S REPORT To the Board of Directors and Shareholders of GP Investments, Ltd. Opinion We have audited the accompanying consolidated financial statements of GP Investments, Ltd. (“Company”) and its subsidiaries, which comprise the consolidated balance sheet as at December 31, 2020, and the consolidated statements of income (loss), comprehensive income (loss), changes in equity and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of GP Investments, Ltd. and its subsidiaries as of December 31, 2020, and their consolidated financial performance and their consolidated cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for opinion We conducted our audit in accordance with Brazilian and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Company in accordance with the relevant ethical requirements set out in the Code of Ethics for Professional Accountants and the professional standards issued by the Brazilian Federal Accounting Council (“CFC”), and we have fulfilled our other ethical responsibilities in accordance with these requirements.