Alantra Partners SA · BME:ALNT
Alantra Partners SA — Dinamia — Shareholder Meeting (June 2014)
24 slides from Alantra Partners SA's shareholder meeting presentation, Jun 11, 2014
Slide 1: Dinamia Annual General Meeting 2014
2014 AGM This presentation will be uploaded onto the Company's website at www.dinamia.es after the Annual General Meeting finishes Dinamia Annual General Meeting 11 June 2014 0
Slide 2: Summary
2014 AGM Summary I. Performance in 2013 and outlook for 2014 II. Investee performance III. Share price performance and dividend IV. Earnings performance in 2013 1
Slide 3: I. Performance in 2013 and outlook for 2014
2014 AGM I. Performance in 2013 and outlook for 2014 1. Sector performance, 2013 2. Key business developments, 2013 3. Key performance indicators, 2013 4. Other significant events after the end of the reporting period 5. Outlook for 2014 2
Slide 4: The sector began to recover in the second half of 2013
2014 AGM I. Performance in 2013 and outlook for 2014 The sector began to recover in the second half of 2013 ■ Investment: down 7.5% year-on-year, albeit stronger in the second half ■ 80% of investment volumes were concentrated in the second half ■ Exits: growth of 20% in 2013 measured at cost Figure
Slide 5: Dinamia remains one of the most active players in its market segment
2014 AGM I. Performance in 2013 and outlook for 2014 Dinamia remains one of the most active players in its market segment ■ International funds topped the investment rankings, accounting for 70% of the total ■ Volumes continued to be conditioned by Spanish funds' reduced investing capacity and the l
Slide 6: In 2013 Dinamia invested c.€23 million and generated disposal proceeds of c.€9 million
2014 AGM I. Performance in 2013 and outlook for 2014 In 2013 Dinamia invested c.€23 million and generated disposal proceeds of c.€9 million Investments 1 Dinamia's Amount Company name Business activity shareholding (€ mn) Continued execution of the portfolio turnover and rejuvenation strategy New in
Slide 7: Consolidation of the strategy drove growth in NAV and fuelled a share price rally
2014 AGM I. Performance in 2013 and outlook for 2014 Consolidation of the strategy initiated in 2010 drove growth in net asset value (NAV) and fuelled a share price rally ■ NAV per share ended the year at €9.13 (+5% vs. 2012, +14% adjusting for dividends) ■ NAV registered growth for the second year
Slide 8: Subsequent events: exit from Mivisa and fresh add-on investments
2014 AGM I. Performance in 2013 and outlook for 2014 Subsequent events: the exit from Mivisa and fresh add-on investments in growing investees stand out ■ Sale to Crown Holdings. IRR of 38% and cash-on-cash return of 2.4x ■ The fund made its first distribution; Dinamia received an amount equivalent
Slide 9: Bright outlook for the sector and company for the years ahead
2014 AGM I. Performance in 2013 and outlook for 2014 Bright outlook for the sector and company for the years ahead ■ Firming economic outlook → positive impact on sector prospects ■ Outlook for 2014 and beyond: Sector ■ Recovery in investment and exit volumes ■ Scope for investee revaluation ■ Growt
Slide 10: II. Portfolio performance
2014 AGM II. Portfolio performance 1. Breakdown of NAV per share as of 31/12/13 2. Trend in revenue, EBITDA and net debt at recently-acquired investees 3. Portfolio NAV as of 12/31/2013 4. Portfolio diversification and valuation multiples 5. Trend in NAV in recent years 9
Slide 11: Breakdown of NAV per share as of 31/12/13
2014 AGM II. Portfolio performance Breakdown of NAV per share as of 31/12/13 €/share 1 Cash and cash equivalents €1.23 Cash balance and most 2 Latest investments €6.44 recent investments account for €7.67/share Solid companies with international growth stories €0.22 €1.25 €0.84 €0.86 €2.01 acquired
Slide 12: Investments acquired between 2008 and 2013 performed well last year
2014 AGM II. Portfolio performance The investments acquired between 2008 and 2013 performed well last year mainly thanks to their international footprints % of revenue generated Revenue EBITDA Leverage 2013 (2012) abroad (out of total 2013 growth growth ND / EBITDA revenue) +31% 41% +70% 3.3x (4.7x)
Slide 13: Strong growth in investee valuations
2014 AGM II. Portfolio performance Strong growth in investee valuations thanks to the newest investments and stronger underlying earnings performances 31/12/2012 31/12/2013 Change MBA 29,851 32,678 9% EYSA 17,080 20,374 19% Revaluation derived from Mivisa 12,930 14,040 9% positive performance by TRY
Slide 14: Portfolio well diversified and valued using cautious methodology
2014 AGM II. Portfolio performance Dinamia's portfolio is well diversified and valued using cautious methodology Exposure to sectors with exporting impetus coupled with Average investee valuation multiple reduced exposure to home market Average valuation multiple: 7.2x BPO International 3% private e
Slide 15: Significant upswing in NAV per share in recent years
2014 AGM II. Portfolio performance Significant upswing in NAV per share in recent years (+57% adjusting for dividends) Accum. Figures in € per share 11-13 +20% +5% 9.13 € 8.73 € +15% 7.62 € 0.70 € 1.80 € +57% +14% 9.13 € +38% 8.03 € 5.82 € 2011 2012 2013 NAV per share adjusted by dividends outflow D
Slide 16: III. Share price performance and dividend
2014 AGM III. Share price performance and dividend 1. Dinamia's shareholder structure at 30/04/2014 2. Dinamia's share price performance vs. comparable indices 3. Trend in discount to NAV vs. comparable indices 4. Proposed shareholder remuneration 15
Slide 17: Turnover of the shareholder base, with Barwon taking 11.8%
2014 AGM III. Share price performance and dividend Turnover of the shareholder base, with Barwon taking an 11.8% shareholding in 2013 Core shareholders at 30/04/2014 Categorisation of shareholder base at 30/04/2014 Anpora Foreign family Patrimonio offices S.L. Free float 22.7% Free Float 22.7% 39.8%
Slide 18: Share price has rallied sharply since December 2011
2014 AGM III. Share price performance and dividend Dinamia’s share price has rallied sharply since December 2011, generating a total return for its shareholders of 151% (including dividends of €1.80/share) Performance between Dec. 11 and Rebased to 100 as of 31/12/2011 May 2014 Dinamia adjusted for
Slide 19: Trading discount to NAV converging towards European comps
2014 AGM III. Share price performance and dividend Trading discount to NAV has been converging towards average for listed European comps since December 2011 Premium / (Discount) % - (10.0%) (20.0%) (30.0%) (40.0%) (50.0%) (60.0%) (70.0%) dic-11 mar-12 jun-12 sep-12 dic-12 mar-13 jun-13 sep-13 dic-13
Slide 20: Proposed dividend: €0.70 per share
2014 AGM III. Share price performance and dividend Proposed dividend: €0.70 per share, in line with company's long-run average and higher than that of listed comps Figures in € per share 1.40 € 1.10 € 0.70 € Average dividend: 0.70 € 0.70 € 0.70 € 0.70 € 0.70 € 0.70 € 0.70 € 0.70 € 0.70 € 0.70 € 0.70
Slide 21: IV. Earnings performance in 2013
2014 AGM IV. Earnings performance in 2013 1. Summarised income statement and balance sheet (2013 vs. 2012) 2. Proposed appropriation of profit 20
Slide 22: Summarised income statement (2013 vs. 2012)
2014 AGM IV. Earnings performance in 2013 IV.1 Summarised income statement (2013 vs. 2012) ■ Dinamia generated a net profit of €7 million in 2013, extending the positive earnings momentum initiated last year Figures in € 000 2012 2013 Proceeds from disposal of investments +/- asset impairment charge
Slide 23: Summarised balance sheet (2013 vs. 2012)
2014 AGM IV. Earnings performance in 2013 IV.2 Summarised balance sheet (2013 vs. 2012) TOTAL ASSETS, 2012-2013 TOTAL LIABILITIES, 2012-2013 135,539 132,461 135,539 132,461 Accounts 14,527 payable (*) 13,814 471 1,480 Other liabilities 86,446 Investments 110,791 120,541 117,166 Equity 49,093 Cash 21
Slide 24: Proposed appropriation of profit
2014 AGM IV. Earnings performance in 2013 IV.3 Proposed appropriation of profit Figures in € 000 2013 Available for distribution Profit for the period 7,017 Total 7,017 Appropriation: Retained earnings 7,017 Total 7,017 Figures in € 000 2013 Proposed dividend proposal 11,395 (to be charged against s