9. Results and key figures
The past year was another intense and successful year for Gimv. We invested in 11 promising new companies and at the same time, market conditions remained favourable, permitting 12 exits with a positive impact on income. Our active investment approach, together with the significant value creation in our portfolio, enabled us to post a strong result for the 2016-2017 financial year. The 19% portfolio yield translates into a net profit of EUR 131.9 million.
Strong year result of EUR 131.9 million
For FY 2016-2017 Gimv posted a net profit (group share) of EUR 131.9 million, compared with a net profit of EUR 137.2 million in FY 2015-2016. More than half of this result consists of the realised capital gains on the divestments of the past year, and the balance of the unrealised capital gains on the portfolio.
Net realised capitalgains during FY 2016-2017 amounted to EUR 84.3 million (2015-2016: EUR 70.5 million). 88% of these net capital gains were realised in the four investment platforms, with all platforms making a positive contribution. Smart Industries contributed EUR 51.2 million, followed by Connected Consumer with EUR 11.4 million, Health & Care with EUR 6.3 million and Sustainable Cities with EUR 5.4 million. Finally, EUR 9.9 million of capital gains were realised on the distributions from third-party funds and the sale of the shareholding in the listed Capman entity.
Net unrealised capitalgains totalled EUR 55.7 million (vs. EUR 88.7 million in FY 2015-2016), coming mainly from Sustainable Cities (EUR 22.9 million) and Connected Consumer (EUR 21.8 million). But Smart Industries (EUR 14.1 million) and Health & Care (EUR 7.4 million) also made positive contributions. The third-party funds and other shareholdings, on the other hand, delivered a negative contribution (EUR -10.5 million).
The net unrealised capital gains are a direct consequence of the application of the prevailing international private equity valuation rules. On the one hand, these net unrealised capital gains are due primarily to a number of positive elements: (i) a decrease in net financial debt in the shareholdings (EUR 20.8 million), (ii) the increased share price of a number of listed shareholdings (EUR 16.6 million), (iii) the better results at the majority of shareholdings (EUR 15.2 million), (iv) the first revaluation of a number of shareholdings (EUR 12.7 million), (v) the upcoming sale of the shareholding in Teads (EUR 4.5 million), (vi) increased multiples (EUR 3.1 million), and (vii) positive exchange rate effects (EUR 0.1 million). On the other hand, there were also a number of negative elements: (viii) an impairment loss (EUR -9.2 million), (ix) a decrease in the value of the third-party funds (EUR -3.1 million) and (x) a number of minor value adjustments 1 (combined effect of EUR -5.1 million).
The other operating result for FY 2016-2017 2 came out at EUR 11.5 million, compared with EUR -8.5 million in FY 2015-2016. On the one side, the other operating income increased by three-quarters (EUR 59.2 million vs. EUR 33.5 million), mainly due to an increase in dividends received (EUR +27.2 million). On the other side, other operating expenses (including transaction costs) increased only slightly (EUR 47.7 million versus 42.0 million).
The net financial result fr the year is EUR 1.7 million positive, in line with 2015-2016 (EUR 1.8 million).
After deducting taxes (EUR -3.5 million) and non-controlling interests (EUR -17.8 million), Gimv realised for the 2016-2017 financial year a net profit (group share) of EUR 131.9 million.
1. This reduction in value is primarily due to the payment of a dividend by Gimv-XL Partners.
2. Dividends, interest, management fees, turnover and other operating income, after deducting services and other goods, personnel costs, amortization of intangible fixed assets, depreciation of land, buildings and equipment, and other operating costs.
Active investment year
In FY 2016-2017, Gimv made in all EUR 179.6 million of on-balance sheet investments (EUR 130.2 million in FY 2015-2106). An additional EUR 16.2 million were also invested via the co-investment funds (as minority interests), bringing the total investments (on balance sheet and via the co-investment funds) to EUR 195.8 million(EUR 162.5 million in FY 2015-2016). The past financial year saw significant investments in the various investment platforms. The Smart Industries portfolio expanded with investments in ALT Technologies, Arplas, MEGA International and Summa. In addition, first-time investments were made in Acceo (Sustainable Cities), Breath Therapeutics, EndoStim, G-Therapeutics and Spineart (Health & Care), and Joolz and Real Impact Analytics (Connected Consumer). There were also follow-on investments in, among others, Biom’Up, Brakel, Ecochem, Europlasma, Itineris, Jenavalve, OTN, TINC and Topas Therapeutics.
In 2016-2017, Gimv sold its shares, among others, in Altaïr/Brunel, Biodiesel Holding (Bioro), BMC, GreenPeak, Hecht, Lampiris, Leyton, Multiplicom, Nomadesk, Onedirect, Punch Powertrain and Vandemoortele. Added to these were a large number of distributions from the third-party funds. For these divestments Gimv received in all EUR 394.3 million (227.2 million in 2015-2016). Additional divestments via the co-investment funds (minority interests) added a further EUR 313.5 million(EUR 76.3 million in 2015-2016), bringing total divestments (on balance sheet and via co-investment funds) to EUR 707.8 million (EUR 303.5 million in 2015-2016).
On top of the sales proceeds of EUR 394.3 million, the sold shareholdings generated during FY 2016-2017 EUR 1.7 million of dividends, interest and management fees. In this way, sold shareholdings produced a total of EUR 396.0 million. On 31 March 2016 these divestments were carried at a total value of EUR 312.1 million. Consequently, the sales generated 26.9% more (EUR 83.9 million) than their carrying value at 31 March 2016 (measured at fair value in the consolidated figures). Over the entire period the realised money multiple on these sold shareholdings was 2.3x (i.e. versus their investment cost).
Portfolio represents three quarters of total assets
Total assets amounted at 31 March 2017 to EUR 1 315.3 million. The portfolio amounts to EUR 963.6 million compared with EUR 1 013.9 million at 31 March 2016. The decrease in the total portfolio is relatively limited, especially taking into account the important level of divestments. This is explained by the EUR 179.6 million of new investments, in addition to the rise in value of the existing shareholdings in the portfolio.
Net cash position amounts to a quarter of total assets
Gimv's net cash position at the end of March 2017 is EUR 313.9 million, compared with EUR 183.9 million 3 at 31 March 2016. This increase is explained by the significant divestments in the first half of the year.
3. Cash and cash equivalents of EUR 192.8 million, corrected for advance payments to be paid from divestments
Equity rises further to EUR 1 233.2 million or EUR 48.50 per share
Equity (group's share) (= net asset value) amounted at 31 March 2017 to EUR 1 233.2 million(EUR 48.50 per share), as against EUR 1 167.9 million(EUR 45.93 per share) at 31 March 2016. The increase in equity during FY 2016-2017, combined with the dividends of EUR 62.3 million paid out during the financial year, represents an economic return on equity for the financial year of 11.0%, in line with Gimv’s long-term return.
Research and development
Gimv and its consolidated subsidiaries did not undertake any research and development activities during the past year.
|Consolidated financial statements (in EUR 000)|
|Equity||1 233 177||1 167 887||1 092 636||992 043||1 011 829|
|Portfolio||963 585||1 013 894||920 189||930 959||814 357|
|Cash and cash equivalents||313 906||192 774||184 766||56 637||195 297|
|Net cash and cash equivalents||313 906||183 881||184 766||56 637||195 297|
|Balance sheet total||1 315 260||1 230 329||1 136 048||1 026 721||1 072 483|
|Net profit||131 853||137 175||135 991||14 998||32 746|
|Total gross dividend (1)||63 567||62 295||62 295||60 576||58 711|
|Investments (own balance sheet)||179 628||130 220||154 283||194 566||110 806|
|Investments (including co-investment partnerships)||195 795||162 492||190 958||264 768||150 888|
|Divestments (own balance sheet)||394 346||227 168||331 960||95 765||180 686|
|Divestments (including co-investment partnerships)||707 817||303 468||367 431||131 143||254 833|
|Number of employees||93||95||103||99||97|
|Key figures per share (in EUR)|
|Diluted net profit||5.19||5.39||5.35||0.61||1.37|
|Gross dividend (1)||2.50||2.45||2.45||2.45||2.45|
|Share price (on the closing date of the financial year)||52.31||48.50||41.89||37.12||38.99|
|Total number of shares||25 426 672||25 426 672||25 426 672||24 724 780||23 963 786|
|Net return on equity||11.0%||12.6%||13.7%||1.5%||3.2%|
|Gross return on portfolio (2)||18.8%||20.0%||17.3%||3.8%||5.9%|
|Premium (+) / discount (-) on equity||7.9%||5.6%||-2.6%||-7.5%||-7.7%|