ANNUAL REPORT 2007 | 2008 - Gimv

30. FINANCIAL RISK MANAGEMENT
See Directors’ Report, ‘Main risks and uncertainties’, page
149.
31. SHARE-BASED TRANSACTIONS
31.1 Warrant plan
See Corporate governance – page 73.
31.2 The co-investment structure
See Corporate Governance – page 79.
31.3 Remuneration of management and staff employees
See Human Resources – page 62.
32. FAIR VALUE
The majority of the group’s fi nancial assets are carried at fair
value in the balance sheet. With respect to long-term receivables
the amortized cost is deemed to approximate to the estimated
fair value. For trade receivables, trade debts, other current assets
and liabilities, and cash and cash equivalents, the carrying
amounts in the balance sheet approximate to the fair value,
given their short term nature.
In the case of long-term interest-bearing liabilities the amortized
cost is presumed to approximate to the fair value.
33. SIGNIFICANT EVENTS AFTER THE BALANCE
SHEET CLOSING DATE
See Directors’ Report, ‘Signifi cant events after balance sheet
closing date’ - page 149.
34. OFF-BALANCE SHEET OBLIGATIONS AND
MAJOR PENDING LITIGATION (IN EUR 000,
GDP 000 AND USD 000))
The text below gives an overview of off-balance sheet obligations
in relation to shareholdings which represent a material portion
of the Gimv Group’s fi nancial fi xed assets.
At 31 March 2008, outstanding commitments for further investments
in funds amounted to EUR 253 223.
Apart from these commitments to invest in funds (see table
overleaf):
- there are six fi les with binding fi nancial commitments totalling
EUR 17 952;
- in only one fi le has Gimv provided a bank guarantee of
EUR 1 500;
- in around half the fi les agreements have been made which, in
the event of an exit, could result in an uneven distribution of
the proceeds, to the benefi t or detriment of Gimv depending
on the fi le and/or the circumstances;
- in around two-thirds of the fi les Gimv’s interest can be diluted,
albeit generally to a relatively limited extent, by stock option
plans or securities entitling their holders to shares upon exercise
or conversion;
- around one third of the fi les include an anti-dilution clause
which comes into effect whenever additional capital is obtained
at a lower price per share, and which in most cases,
but not always, operates to Gimv’s advantage;
- 60 percent of fi les commit Gimv to co-selling its holdings, in
most cases together with the other members of the fi nancial
consortium;
- in two fi les Gimv has granted a call option on all or part of its
shares in a particular participating interest, and in six fi les one
or more third parties have put options on Gimv;
- in less than one third of the 109 contractual divestments
undertaken by Gimv since 1997 have representations and
warranties been given that are still effective. At the year-end
closing date there was no indication whatsoever to suggest
that any claim might be made against these representations
and warranties.
The buy-outs have purchase obligations amounting to USD
34 972 and GDP 105. Guarantees totalling EUR 59 have also
been given.
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