Alto Invest Presentacion

Transcription

1 Alto Invest Presentacion 11 Foro Medcap Madrid, 27 y 28 de mayo 2015 LA EXPERIENCIA DE UN INVERSOR EN LOS MERCADOS ALTERNATIVOS BURSÁTILES 1 1

2 ALTO INVEST IN A NUTSHELL ALTO INVEST was founded in 2001, as a spin-off of a large French insurance company (AGF Assurances Générales de France) Assets under management as of 31th December 2014 : 330 M 35 investment vehicles under management More than retail clients 200 investments in European small and mid-cap companies (SMIDs) in France, Germany, the UK, Sweden, Benelux, Spain, Italy 2 2

3 200 PORTFOLIO COMPANIES SINCE 2001 More than 400m invested in European SMIDs International strategy since 2009 Breakdown of investments by region France 41% Sweden 12% Italy, Spain, Belgium, Ireland 6% United Kingdom 18 % Germany 23 % 3 3

4 200 PORTFOLIO COMPANIES SINCE 2001 More than 400m invested in European SMIDs A strong diversification amongst innovation-rich sectors Breakdown by sector as of 31st Dec IT-Support Services 7 % Telecom and Computer Services 23 % Manufacturing 16 % Others 4% Electronics / Electrical 12 % Life Sciences 13 % Software 25 % 4 4

5 SOME SUCCESS STORIES MedTech-specialist for advanced haemodynamic monitoring (Munich) Market cap : 150m (March 2014) 2013 Revenue: 36,5m 131 employees Annual IRR : 55,10 % (to 31/12/2014) Shareholder from 2009 up to 2014 (Trade sale to Getinge) Support services for new digital technologies (Paris) Market cap: 85m (March 2015) 2014 Revenue: 111,5m 874 employees. Annual IRR : 33,14% (to 31/03/2015) Shareholder since 2006 Supplier of Software Solutions and Services to Local Government (London) Market cap: 141 m 2014 Revenue: 61 m 467 employees Annual IRR : 53,83 % (to 31/03/2015) Shareholder since 2010 Provider of optical and digital anticounterfeiting solutions (Bussy St Georges) Market cap: 190m 2012 Revenue: 48.9m 294 employees Annual IRR : 29,72% (to 31/12/2013) Shareholder from 2003 up to 2013 (Sale to Private Equity) 5 5

6 WHAT DO WE LOOK FOR IN COMPANIES? INNOVATION 6 6

7 WHAT DO WE LOOK FOR IN COMPANIES? Why Innovation? It enables long-term value creation It allows growth in revenue and exports It helps to differentiate It protects margins and profitability What Innovation? PRODUCTS PROCESSES BUSINESS MODELS 7 7

8 WHAT DO WE LOOK FOR IN COMPANIES? R&D : 10 % of costs minimum Clear strategy and focus Profitability (depending on the stage growth and the economic sector) Capacity to develop internationally Little or no debt Reasonable valuation Shareholder value creation, alignment of interests 8 8

9 HOW DO WE PROCEED WITH COMPANIES? Face-to face meeting with managers is a must / Site visit the best (no research on half of the European SMIDs) Due diligence process may last several weeks (the private equity way when possible) Investment in newly issued shares preferably Investment in convertible bonds or existing shares is a second best A stable investor (5 years horizon) not a trader (well-suited to illiquid stocks) Regular contacts with management, but no board participation Active participation in AGMs, support to the management Entrepreneurs Club Alto 9 9

10 THE FRENCH TAX SCHEME FOR INVESTMENTS IN SMALL COMPANIES FOR RETAIL INVESTORS FCPI/FIP FCPIs (Fonds Communs de Placement dans l Innovation) and FIPs (Fonds d investissements de Proximité) have been respectively created in 1999 (FCPI) and 2003 (FIP). FCPIs invest in innovative companies across the European Union, FIPs invest in smaller regional companies in a given territory of 4 European regions at most. Investments in both FCPI and FIP must be made in non listed companies or companies listed on unregulated stock markets (Alternext, AIM, Entry Standard, MAB,.) French residents benefit from an income tax rebate of 18 % of their investment in FCPIs or FIPs. Each year single persons may invest up to (income tax rebate of ) and married couples up to (income tax rebate ). Investors in FCPI and FIP may alternately benefit from a French wealth tax rebate of up to 50 % of their investments in FCPI or FIP. Each year investors may invest up to per household (wealth tax rebate of ). Any gain on investments in FCPIs and FIPs benefits from a softer capital gain taxation: 15,5 % instead of up to 62 % for other capital gains

11 WHAT DO WE LOOK FOR WHAT IN COMPANIES? IS A FCPI? Investments in listed or private SMEs 70%- 100% Investments in «Innovative SMEs» : non listed or listed in Alternext, AIM, Entry Standard, MAB,.. Innovation means a R&D spend above 10% of overall cost 40 % minimum in new share issues Other Investments 0%-30% Bonds, Stocks, Cash, Via Mutual Funds mainly 11 11

12 THE FRENCH MARKET FOR FCPIs/FIPs Total fund raising of FCPIs/FIPs in 2014: 773 m in 2014 (+ 12 % vs 2013), FCPIs 2014 fund-raising: 332 m i.e. 43 % of total The market is recovering after a peak in 2008 (33 % higher) and a bottom in 2012 (20 % lower) Average retail client investment is Average fund size is 10 m (i.e clients) Industry breakdown of investments by FCPIs: Information Technology 34 %, Life sciences 27 %, Environment and Energy 13 %, Telecom 11 %, Industry 8 %

13 THE NEW FRENCH TAX SCHEME FOR INVESTMENTS IN SME s PEA-PME The PEA (Plan d Epargne en Actions) is an old retail savings product to encourage private investors to hold shares. Created in 1992 it offers the possibility to hold European stocks with a limited tax rate on dividends and capital gains (15,5 % after 5 years). 1 PEA per person with a cost cap of per account. Dividends above 10% on non listed shares are taxable at the normal (up to 42,5%). The PEA PME has been launched in march It works like the PEA but targets European SMIDs with the same reduced tax rate on capital gains and dividends (15,5 %). 1 PEA PME per person with a cost cap of per account. The launch of the PEA PME is rather disappointing (2014 total fund raising of million versus expectations of 1 bn ). Definition : A European SMID is a company with less than 5000 employees, 1.5bn turnover and 2 bn total balance sheet

14 ALTERNEXT: FACTS AND FIGURES The French little brother of AIM born 10 years ago 240 listings since May 2005 (19 new listings in was the best vintage with 51 IPOs) 180 companies still listed with a combined capitalization of EUR 10bn versus 497 companies with a total market capitalization of EUR 52 bn for AIM (excluding non UK companies, resources, finance and property) EUR 4bn raised over 10 years (EUR 1,4bn at IPO) Alternext Index down 17% since launch versus +25% for the CAC Small Index 2 of the top 5 Alternext companies are Alto Invest portfolio companies (Solutions 30 and MGI Digital) 14 14

15 RULES FOR LISTING IN ALTERNEXT Minimum investment offering of 2,5 million (at introduction «public offering» or before the listing with 3 qualified investors minimum «private placement») Minimum of 2 years of audited accounts French GAAP or IFRS Prospectus issued by AMF Offering Circular - (Autorité des Marchés Financiers) Listing sponsor 15 15