ANNUAL REPORT 2007 | 2008 - Gimv

Strong performance and expansion
in an uncertain economic climate
How did Gimv perform in a year for which the US
credit crisis marked the pivot point? Chairman
Herman Daems and CEO Dirk Boogmans point
out that Gimv has experienced hardly any negative
infl uence from this new economic situation. Gimv
remains a solid top player with a well distributed
portfolio, experienced investment teams and a
highly profi table long-term strategy. On top of this
the successful internationalization of its activities is
offering attractive prospects.
The consequences of the credit crisis are still working
through the markets. What infl uence has Gimv
experienced?
Herman Daems - In the fi rst half of the 2007 there was still strong
upward movement in the economy. The pivot point came in summer
2007 when the credit crisis hit and dragged markets down. It was
primarily the megabuy-outs from EUR 1 billion upwards which ran
into a headwind. The 2007 credit crisis scarecely impacted Gimv.
Dirk Boogmans - If we look at the investments we made, we see
that the investment volume has even risen slightly. The markets in
which Gimv operates are continuing to perform well. In divestments
too we can present outstanding results.
Has Gimv been able to hold its position in terms of
performance?
Herman Daems - Recent fi gures from the European Private Equity
and Venture Capital Association (EVCA) show incontrovertibly that
Gimv is among the 25 percent of strongest players on the market,
and that for 25 years now. These methodologically well-founded
data are based on a comparison of 1 215 European funds. The most
recent fi gures also confi rm that Gimv is continuing this long-term
trend. The past fi nancial year was another good year.
Dirk Boogmans - We should point out here that Gimv’s portfolio is
structurally sound. The falls in market values are offset by higher
EBITDAs at our companies. Around two thirds of the value creation
comes from the increase in EBITDA. This result was achieved
despite the strong cash position, which will become even stronger
in the long term. Gimv is also allowing its shareholders to share in
its results with an attractive dividend.
Gimv has expanded its fi eld of action. How do these new
activities relate to the core ones?
Herman Daems - The extension is in three areas: infrastructure,
cleantech and growth capital. For infrastructure investments Gimv
has recruited experienced experts. Together with Dexia, Gimv has
set up DG Infra+, a new unlisted fund that focuses on infrastructure
and real estate projects. Together we are aiming at a fund size of
around EUR 150 million.
Dirk Boogmans - In an extension of its core activities, Gimv is also
concentrating on the large potential that exists in cleantech. The
Corporate Investment Belgium team has also been strengthened to
enable Gimv to play a more active role on the growth capital market.
This extension is taking place in a carefully controlled fashion, starting
each time from our existing skills and maintaining our focus in
each of our activities.
In 2006, Gimv was gearing up for further international
expansion. How far was this achieved in 2007?
Herman Daems - Gimv has been working on its international expansion
for some time now. A good example is the continued internationalization
of our ICT activities in various European countries.
Gimv has signifi cantly strengthened its presence in France. We have
opened an offi ce in Paris with a local investment team for the local
buy-out market. A cooperation agreement with Pragma Capital also
ensures us of additional support.
For our ICT activities we have also recruited a local investment manager.
We already had considerable expertise in the French market,
with shareholdings in French ICT and life science companies and
various buy-outs. In Germany we can announce the successful
closing of the Halder-Gimv Germany II fund. As with the fi rst fund,
the emphasis will be on management buy-outs of medium-sized
German companies.
Dirk Boogmans - We have also been pretty active in Central and
Eastern Europe. With KBC Private Equity we have concluded a
partnership in order to further develop the Russian market. The
partners will concentrate on investments in fast-growing economic
sectors. The cooperation runs via a new company, Eagle Capital
Partners, which is acting as investment consultant.
Gimv’s employee count has grown sharply over the past
fi nancial year. What comments would you like to make
here?
Herman Daems - Gimv’s employee count has risen by around
10 percent, which is a pretty strong rise. The integration of the
newcomers has been excellent. Let me take this opportunity to
express my great appreciation for all our employees. They have
made possible Gimv’s strong results.
I would like also to mention the hard work of Professor Christine Van
Broeckhoven, who has retired as an independent director. I would
also like to thank our departing CEO Dirk Boogmans for his many
years of commitment to our company. Dirk has been one of the driving
forces behind Gimv’s success. On behalf of all Gimv employees
and the Board of Directors I wish him all the very best.
In April 2007 our former chairman Raynier van Outryve d’Ydewalle
passed away. Not only was he one of Gimv’s founders, but throughout
his long career he was a great source of inspiration for the
expansion of the company.
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