Interview with the Chairman and CEO

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 influence from this new economic situation. Gimv remains a solid top player with a well distributed portfolio, experienced investment teams and a highly profitable 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 influence has Gimv experienced?

HD: In the first 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.

DB: 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?

HD: Recent figures 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 figures also confirm that Gimv is continuing this long-term trend. The past financial year was another good year.

DB: 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 field of action. How do these new activities relate to the core ones?

HD: 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.

DB: 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?

HD: 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 significantly strengthened its presence in France. We have opened an office 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 first fund, the emphasis will be on management buy-outs of medium-sized German companies.

DB: 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 financial year. What comments would you like to make here?

HD: 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.