Transcript Portefeuille - BIP Investment Partners

BIP Investment Partners
LUXEMBOURG
Press Conference
13 February 2007
BIP Investment Partners
LUXEMBOURG
Press Conference
Alain Georges
Marc Faber
Chairman of the Board of Directors
General Manager
BIP Investment Partners
LUXEMBOURG
Disclaimer
• The following presentation may contain forward-looking statements
with respect to the investments, the financial situation and
business of BIP Investment Partners S.A.
• These forward-looking statements represent BIP Investment
Partners S.A.‘s expectations and beliefs concerning future events
and involve known and unknown risks and uncertainty that could
cause actual results, performance or events to differ materially
from those presented or implied in such statements.
BIP Investment Partners
LUXEMBOURG
Introduction
• 2006 : New record year for BIP
– Net Profit EUR 71m
– Assets under management EUR 501m
– Increase by 50% of proposed gross dividend to EUR 3,-
• 2006: BIP adapts its strategies and structures
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Geographic scope extended
Primary focus on familiar regions and its companies
BIP Venture Partners S.A., SICAR created
IFRS accounting rules adopted
BIP Investment Partners
LUXEMBOURG
Introduction
• Corporate Governance and legal environment
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Law of 25 August 2006
Bourse de Luxembourg ‘s Ten Principles of Governance
BIP Company articles to be modified: General Meeting on 20.03.2007
Adoption of BIP Coporate Governance Charter
• Shareholder rights are strengthened
• BIP Internet web site becomes official corporate information source
• Transparency and dialogue are improved
BIP Investment Partners
LUXEMBOURG
BIP: attractive investment
• Active management of diversified portfolio
– Listed companies
– Private Equity
– Private Equity funds
• Privileged access to generally inaccessible investments
– Direct Private Equity
– Private Equity funds
BIP Investment Partners
LUXEMBOURG
Active portfolio management
• Maximise performance on existing portfolio lines (e.g. Arcelor)
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Tactical doubling of initial Arcelor line
Arbitrage between Arcelor Brasil and Arcelor shares
Swap Arcelor shares => Mittal Steel shares
New portfolio line ArcelorMittal
Selective use of derivatives (put/call options)
• Identify new opportunities
– Sector knowledge
• Arcelor Brasil
• Companhia Vale do Rio Doce (CVRD)
– Initial Public Offerings
• Metris
• Octoplus
BIP Investment Partners
LUXEMBOURG
Portfolio developments
• Amount Invested : €160m
– Swaps Arcelor > Mittal , VSE Net > Artelis
– Follow-on investments in existing portfolio lines
• EVS, VOX, XDC,…
– New investments:
• Arcelor Brasil, CVRD
• SICAR: Apax, Carlyle Venture Partners, Hamilton Lane, Vertex
• Direct Private Equity: 21Net, Technolia
BIP Investment Partners
LUXEMBOURG
Portfolio developments
• Exits : €106m with €46m realised capital gains
– Swaps Arcelor -> Mittal, VSE Net -> Artelis
– Selective profit takings on Fortis, SES, Option…
• Assets under management from EUR 428m to 501m
• NAV per share from 90.27 to 106.21 (+18%)
BIP Investment Partners
LUXEMBOURG
Share Price
NAV / Share Price
• Share price: + 20%
120.00
– from 67.0 to 80.5
100.00
110.00
90.00
80.00
2006
2005
– Shares
411,000 202,000
– Value
31m
11m
– Second most active share after
Arcelor !
70.00
60.00
50.00
40.00
30.00
20.00
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• Liquidity
NAV
Share Price
BIP Investment Partners
LUXEMBOURG
Adoption of IFRS
• Recognized reporting framework for listed companies
• Portfolio valuation at Fair Value
– Private Equity valuation changes through Profit and Loss
• Greater transparency for investors
• Higher volatility of annual results
BIP Investment Partners
LUXEMBOURG
BIP – Results 2006
(en K EUR)
2006
2005
Dividends and other revenues on available-forsale financial assets
16.623
7.987
Net gains on disposal of available-for-sale
financial assets
46.318
14.410
Net income on financial assets at fair value
through profit and loss
12.762
16.515
Net income on trading assets
4.081
2.281
Other income
1.627
-727
Total charges
-3.939
-3.072
Income from ordinary activities, before tax
73.472
37.394
Income tax
-2.517
4.400
Net income
70.956
41.794
14,94
8,78
Earnings per share ( EUR)
BIP Investment Partners
LUXEMBOURG
Dividend
• Proposal to pay gross dividend of
€3.00
• Withholding tax decreased from
20% to 15%
• Gross dividend yield 3.75%
3
2.5
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1.5
Dividende
1
0.5
0
'01'02'03'04'05'06'07
BIP Investment Partners
LUXEMBOURG
2007
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Maturing portfolio and experienced management team
Contemplate larger deals
Deploy available funds on more extended geography
Pay special attention to Private Equity and quoted Mid-caps