Gimv company presentation October 2014 Robert Gallenberger GIMV AT A GLANCE 2 COMPANY PRESENTATION A pioneer in continental Europe since 1980 • Average return: 11.6% (33 years) • Market cap: EUR 918 million (31/03/2014) • Listed: NYSE-Euronext Brussels • Free float: 73% • Employees: 99 EVOLUTION AUM SHAREHOLDERS (E) 2000 1800 13% 1600 1400 35% Retail Investors 1200 Investment 25% 1000 Partnership VPM 800 Equity 600 International 400 institutionals 200 Belgian 0 institutionals 27% 3 COMPANY PRESENTATION The Private Equity and Venture Capital landscape … is evolving rapidly and profoundly • Structurally, less use of financial • A number of established players are leverage forced to reduce their ambition • Pressure on returns (in PE and VC • Other players disappear because of models) financial crisis and reshaping of • VC-model is experiencing funding financial markets difficulties across Europe • Only the most professional and best • Increased need to specialise and performing teams will continue to deliver “real world” added value have access to funding and best deals Gimv is pro-active and a forerunner in re-shaping its industry 4 COMPANY PRESENTATION Multidimensional cross country platform strategy to partner with the next generation entrepreneurs • 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, health- and cost-conscious society • Smart Industries Smart, technology enabled solutions and added value services • Sustainable Cities Services, utilities & infrastructure with a sustainable community impact 4 platforms with dedicated and skilled team across Gimv’s home market: Belgium, the Netherlands, France and Germany 5 COMPANY PRESENTATION A strategy based on specialised investment platforms Deal thesis • A clear, upfront articulation of how Gimv’s competitive Gimv will create equity value with the advantage deal • Based on a thorough understanding of • Business clusters where similar how the business makes money Investment business models (hence similar • Matching with Gimv’s culture (e.g. platforms deal theses) apply and where growth stories, not turnarounds) Gimv can develop proprietary insights and deal theses • Rooted in Gimv’s historical • Choices of deal theses and sectors backed-up by strongholds (e.g. food) or positive momentum from societal trends, either global pertinence in local market (e.g. (e.g. ageing population, need for infrastructure) or local regulatory driven sector (e.g. community-backed initiatives such as transformation) Innovatiecentrum Vlaanderen) • Gimv’s access to world class ecosystems (Life Sciences, Medtech, …) Macro-trends 6 COMPANY PRESENTATION GIMV’S PLATFORM STRATEGY 7 COMPANY PRESENTATION Powered by know-how and technological innovation 8 COMPANY PRESENTATION Key trends within Smart Industries Increasing availability of Resource efficiency as a Global competition, faster data, connectivity and key driver in all industries design cycles and advanced computation driven by resource scarcity differentiation through power offering new and environmental innovation intelligent solutions constraints 9 COMPANY PRESENTATION Selected Smart Industries portfolio Success stories 10 COMPANY PRESENTATION For the ageing, health- and cost- conscious society 11 COMPANY PRESENTATION Strong trends underline demand for H&C investments CONTINUED GROWTH with need AGEING POPULATION for structural change leading to increasing H&C spending is demand increasing, now 9% of e.g. The number of people over GDP, unsustainable 80 will double by 2030 and historical trend of GDP reach 7% of total population +2% annually CHRONIC DISEASES on the rise e.g. Diabetes cases in Europe CONTINUOUS are set to rise by 23% from 2010 TECH INNOVATIONS to 2030 e.g. New 3D imaging techniques to guide surgeons PATIENTS MORE CONSCIOUS Increasingly educated (80% of people search online for healthcare related information) 12 COMPANY PRESENTATION Selected Health & Care portfolio Success stories 13 COMPANY PRESENTATION The newly launched Gimv Health & Care Co-invest Program • °2013 • Target Fund Size EUR 200 million • Sponsor: Gimv – Up to EUR 75 million • Co-Sponsor: Flemish Government (VPM) - EUR 50 million • Additional resources will be attracted from various institutional investors • Investments in companies active in the Health & Care services and Medtech sectors, with the aim to accelerate existing business and to introduce models from one region to another. • Geographical focus: Gimv core markets (Belgium, France, Germany, The Netherlands) (>80%) and rest of Europe (max. 20%) • Both minority and majority investments • Size investments: max. 12,5% of total (target) Fund Size per investment • Fund horizon: 12 years, with the option to extend with 3 years 14 COMPANY PRESENTATION Connected with the future consumers 15 COMPANY PRESENTATION Consumer 2020 influenced by a huge set of trends Sharing Everything & everyone is Growing mobile life expectancy Consumer 2020 Social media Design & customisation is key 16 COMPANY PRESENTATION Selected Consumer 2020 portfolio SUCCESS STORIES 17 COMPANY PRESENTATION Investing in tomorrow’s smart, clean and efficient communities 18 COMPANY PRESENTATION A set of fundamental environmental, geo-political & socio- economic trends are changing today’s urban communities Infrastructure Scarcity of Environmental Urbanisation Housing shortage obsolescence resources awareness • Today, half of the • Infrastructure is old, • Land scarcity, limited • Economies outgrow • Improved socio- world’s population refurbishment rate real estate accessible reserves. economic level. lives in urban areas, often too slow investments drive • Increasing prices & • Voting patterns shift with 60m new urban (1/500th p.a. for housing prices. market volatility. towards “green” dwellers per year. London sewer). • Increasing utility • Concerns about themes (in EU). • Municipalities and • Urban boom makes costs add to poverty supply security • Willingness to pay government waste, water, transp. (5m UK households (energy / food). for e.g. Toyota Prius struggling to perform solutions obsolete are fuel poor). • Need for low- confirm pull for their duties (security, (25% world urban • Over 17% of EU 27 resource and sustainable housing, education, population has population lives in recycling solutions. products. resources supply…). limited access to overcrowded sanitation). housing. Urban communities need to become more sustainable. This will drive innovation and investment in energy generation, waste treatment, smart housing solutions, transportation and infrastructure. 19 COMPANY PRESENTATION Selected Sustainable Cities portfolio Success stories 20 COMPANY PRESENTATION GIMV’S APPROACH 21 COMPANY PRESENTATION Gimv key investment criteria STRATEGIC NEEDS 1. Clear company vision 2. Clear investment thesis for growth and value creation 3. Sustainable and defendable competitive advantage 4. Strong management FOCUS INSTRUMENTS TICKET SIZE EXIT HORIZON • We fund innovative companies with proven EUR 3 - 30 Flexible, technology. million 4 to 7 years on average • We provide growth capital to emerging leaders looking to catalyse their development. • We invest in established market leaders where we offer liquidity for existing shareholders. 22 COMPANY PRESENTATION Investment objectives RELATIONSHIP WITH SELECTING NEW DEALS DIVERSIFIED PORTFOLIO PORTFOLIO COMPANY • Innovative products • 4 platforms • Pro-active or services • European focus • Building value through • Sustainable or even • Balance in risk-location- active participation on “unfair” competitive stage BoD level advantage, ideally in • High level of interaction niche markets • Interactive • Hands-with • High growth and • Exit driven profitability potential • Superior return on • Agreed business plan as basis for partnership • Committed investment management & organisation 23 COMPANY PRESENTATION GIMV’S MUNICH-BASED INVESTMENT PROFESSIONALS 24 COMPANY PRESENTATION Munich-based team Hansjörg Sage Robert Gallenberger Jan Haase Karl Nägler Managing Partner Principal Associate Partner Head Smart Industries SI SI H&C .