ANNUAL REPORT 2018 - 2019 ANNUAL REPORT 2018 - 2019 LEADING OUR PORTFOLIO COMPANIES FOR THE BENEFIT OF OUR ECONOMY. CONTENTS 1. Message from Chairman and CEO 5 2. Business model and investment strategy 9 3. Value creation starting from 4 central themes 23 4. Results and activity report 35 5. Key figures 41 6. Share and shareholders 45 7. Corporate Governance Statement 49 8. Annual Accounts 77 9. Contact 141 INVESTMENT PORTFOLIO EUR 1.1 BILLION OUR 55 PORTFOLIO COMPANIES JOINTLY REALISE A TURNOVER OF MORE THAN EUR 2.75 BILLION AND EMPLOY 14 000 PROFESSIONALS FOCUS ON VALUE CREATION FROM 4 PLATFORMS CONNECTED HEALTH SMART SUSTAINABLE CONSUMER & CARE INDUSTRIES CITIES 4 OFFICES WITH MULTIDISCIPLINARY TEAMS: ANTWERP, PARIS, THE HAGUE, MUNICH 39 YEARS’ EXPERIENCE IN PRIVATE EQUITY OVER THE LAST 5 YEARS INVESTED IN 932 EUR MILLION 46 COMPANIES PROCEEDS FROM 1 520 EUR MILLION 48 EXITS MESSAGE FROM CHAIRMAN AND CEO1 6 ANNUAL REPORT 2018-2019 The world around us is changing at an incredible pace. Last year we were still talk- ing about an improving economy that had moved up several gears; today, barely a year later, we see this economic upswing under threat from various geopolitical and macroeconomic factors. Trade relations are more difficult, the power posi- IMPACT: MEETING CRUCIAL tions and therefore also the relationships between CHALLENGES TOGETHER the major world economic powers are shifting, as evidenced by the never-ending story of Brexit. Gimv goes looking for the market leaders of Last year, climate and the environment concerns tomorrow, together with which it can make a vi- topped the political and economic agenda, calling tal difference, year after year. into question our current economic model, while For companies that anticipate “Gimv wants to be an driving innovation and investments in sustainabil- change and are developing in- accelerator for growth. ity. At the same time, our labour market is strug- novative solutions to the crucial gling with shortages, requiring companies to be challenges facing our societies. For our portfolio resourceful with digital transformation. Like Medi-Markt in Germany, companies, for our which serves today’s growing shareholders, for our population of elderly persons ACCELERATING WITH DETERMINATION with new incontinence solutions. economy and our Or Groupe Claire from France, entire society.” Against this background, 2018-2019 was a particu- which is producing technology larly busy but successful financial year for Gimv. for renewing outdated drinking We accelerated our buy-and-build activities and water networks. Or Impact Interim, a Belgian em- invested in 9 new, promising portfolio companies. ployment agency focusing on technical profiles Our investment portfolio - the youngest in years - and on other bottleneck professions. has now passed 1 billion euros. Our portfolio com- panies performed well, with their combined turn- To turbocharge the growth ambitions of our port- over up 10 percent to 2.75 billion euros, and with folio companies, we do much more at Gimv than strongly improved profits. This gave us a portfolio plain investing and participating. With our practical return in excess of 15 percent for the fifth financial experience and sector expertise in key growth ar- year in a row. eas - Connected Consumer, Health & Care, Smart Industries, Sustainable Cities - we are investor, The consolidated financial statements are expressed in thousands of euros unless otherwise mentioned. ANNUAL REPORT 2018-2019 7 consultant and partner for companies keen to be at the fore- front of the transforming European economy. Companies that can scale up by means of smart innovation and targeted auto- mation, sometimes against the economic trend. CONTINUING TO CREATE ADDED VALUE This role we can assume only thanks to the many thousands of employees at our portfolio companies, thanks to our dedicated Gimv employees and of course thanks to you, dear shareholder. We therefore want to thank you deeply for your interest and con- fidence in our investment company. This last year’s good result enables us to propose a substantial dividend of 2.5 euros per share, while continuing to invest in Gimv’s progress. Hilde Laga, Chairman and Koen Dejonckheere, CEO The consolidated financial statements are expressed in thousands of euros unless otherwise mentioned. 8 ANNUAL REPORT 2018-2019 The consolidated financial statements are expressed in thousands of euros unless otherwise mentioned. BUSINESS MODEL AND INVESTMENT STRATEGY2 As an investment company with almost 40 years’ experience in private equity, we stimulate and accelerate the growth of ambi- tious and innovative companies. From Gimv, we give companies the financial support and strategic advice they need in order to evolve into international leaders in their sectors. We consider ourselves a solid and experienced partner in working with growth companies that are ready for the next phase in their development. Applying an active investment approach, we support and guide them in transforming into mar- ket leaders in their particular niches. Strong management, a clear business vision and a sustainable strategy form the foundations of this collaboration. Gimv has consciously opted for a sector-oriented platform strategy. Based on long-term social and economic macro trends, we translate our vision into four investment platforms: Connected Consumer Health & Care Smart Industries Sustainable Cities Each investment platform calls for sector specialization and expertise, market knowledge, a proactive attitude and a specific investment approach. For this, our platform teams are multidisciplinary and cover all of Gimv’s home markets (Belgium, Netherlands, France and Germany). For additional support they can count on a broad network of international experts. Our teams’ local presence on the one hand, and their global approach on the other, are important levers for expanding our portfolio companies. ANNUAL REPORT 2018-2019 11 Gimv invests directly in companies, mainly with equity capital both in terms of financing (buy-out, growth capital or venture on the balance sheet. Together with the management of our capital for the life sciences sector) and in terms of duration. portfolio companies, we prepare a 180-day plan that reflects the Gimv’s strong balance sheet and easy access to capital in the company’s needs and priorities. This plan offers us the opportu- long term enable it to function as an ‘evergreen’ partner. nity to set up a tailored investment approach for the company, We believe in ambitious entrepreneurs who want to make a difference. Our investment choices focus on companies working on solutions to the challenges of tomorrow. INVESTMENT CRITERIA ADDED VALUE ambitious and innovative companies with strong growth flexible shareholder, strong balance sheet and per- potential manent access to long-term capital small to medium-sized companies with business expertise in companies at different stages of values up to EUR 250 million development companies with capital requirements of EUR 5 to 50 familiar with the entire business life cycle million international, multidisciplinary teams, strengthened by companies headquartered in the Benelux, France and a broad international network the DACH countries active shareholder, involved in the board of directors companies with strong management, clear business visions and a strategies based on sustainable value creation and meaningful added value for society SUSTAINABLE AND RESPONSIBLE INVESTMENT Gimv aspires to build leading companies, based on the conviction that these create value for many stakeholders and contribute to building a prosperous society. Sustainable and responsible investment from an ESG (Environmental, Social and Governance) stance is therefore part of Gimv’s core activity. Further information can be found on p. 21. The consolidated financial statements are expressed in thousands of euros unless otherwise mentioned. 12 ANNUAL REPORT 2018-2019 Connected Consumer focuses on companies with a clear vision of the needs and preferences of today’s and tomorrow’s consumers. Was it ever more exciting than today to invest in the consumer sector? The Y and Z generations are clearly influencing our consumer patterns and bringing about a major social renewal. Consumers today are consciously opting for active and healthy lifestyles. They are committed to sustainability and dare to point companies to their shortcomings in this area. They are more ready to express their opinion than ever, especially online, where they are connected to the whole world through a few clicks. Anyone wanting to connect with them must evolve at lightning speed in a seamless on/off-line experience. At Connected Consumer, we work with younger, ‘digital-native’ companies and more established ones. They operate in B2B or B2C, are active in brand ac- tivities, production or distribution, and all focus on innovation and on flexible commercial strategies. With the investment focus on, among other things, healthy diet and a work-life balance, the Connected Consumer platform responds to the pursuit of good health and well-being, to responsible production and consumption as guarantees of sustainable growth and confi- dence, to economic growth and achievable high employment. INVESTMENT FOCUS Sport & Health Companies active in sports, leisure & healthy food Quality food/quality of life Companies responding to a desire for luxury and comfort, including convenience restaurants and clothing Work-life integration Companies that work in the fields