PRESENTATION
Wallonia Invest Fair
(Liege)
Christophe DENIS: Senior Investment Officer
December 5, 2013
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Mission Statement
“To provide capital and
know how for international investments
of Belgian private sector companies.”
STRUCTURE OF PRESENTATION
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ABOUT US
OUR PRODUCTS
OUR BUSINESS PRINCIPLES
OUR WORKING METHOD
PROJECT OVERVIEW
WHAT OUR CUSTOMERS SAY ABOUT US
CUSTOMER REFERENCES
CASE STUDIES
ABOUT US
BMI-SBI is a semi-public financial institution on federal level
active in the medium to long-term co-financing of foreign
investments by Belgian companies
Created in 1971 : over 300 projects in more than 50 countries
Past & Current Clients: IBA, Resilux, Versele Laga, DesleeClama,
Septentrio, Vanreusel Snacks, Sipef, Sonaca, SIAT, LVD, Machiels,
Schreder, Deroose Plants, Magotteaux, Eurogentec, Stokota,
Boortmalt, Pauwels Trafo, Etex – groep, ICOS, Lano Carpets,
Fruytier, Vitalo, Eden Chocolates, Exki, Polet Water Group...
ABOUT US / CAPITAL AND SHAREHOLDERS’ STRUCTURE
Equity Capital = € 35,5 million + € 8 million endownments
Main shareholders / partners:
National Bank of Belgium 6%
Others 5%
Electrabel 5%
ING Belgium 7%
BNP Paribas Fortis 19%
FPIM/SFPI 58%
ABOUT US: EXTERNAL FINANCING
– Endowments from the Belgian State for projects in Asia (€ 3,7 Mio)
and Central & Eastern Europe (€ 2,9 Mio)
– Collaboration with the regional authorities in Belgium, i.e. for
investment projects with Flemish companies SBI-BMI works with
Fonds Vlaanderen Internationaal (=linked to PMV), for Walloon
companies we work with AWEX/SOFINEX
– Collaboration
with
European
EDFI
colleagues,
mainly
DEG and BIO, allowing co-financing up to € 30-60 Mio
for projects in developing/emerging markets
OUR PRODUCTS
Tailor-made financial products at the level of the foreign entity, normally without
parent guarantee
Amounts between € 400.000 and € 2.500.000 and higher via external financing
At market conditions with matching (cash) contribution by the Belgian Partner
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Equity
Minority stakes. Target IRR > 15%. Exit after 5-10 years at pre-defined exit terms
(put & call options/trade sale/IPO)
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Quasi-equity
Subordinated, participative and convertible loans normally in € combining fixed
interest rates with variable interest rates based on the success of the project.
Terms of 5-10 years with grace periods of 2-3 years
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Medium- and long-term loans
Complementary to equity or quasi-equity;
35% equity
Portfolio
45% quasi-equity
20% senior loans
BUSINESS PRINCIPLES
Partner profile
• SME’s (with a minimum turnover of € 8 Mio), Medium
Sized Enterprises & Stock quoted companies (i.a. Resilux
S.A., IBA S.A…)
• Relevant track record
• Start / expand the internationalisation of their activities
via a foreign investment
Project profile
• “Greenfields”, expansions of existing projects,
acquisition of existing companies
• Wholly owned subsidiaries, joint ventures (majority equity
holding by the Belgian partner / profit centre)
• Type of industry: reflection of prominent (industrial /
services) sectors of the Belgian economy
BUSINESS PRINCIPLES
Spread per sector
Other 32%
(Infrastructure, Textile,
High-Tech, Finance)
Chemical, Medical &
Pharma, Packaging 26%
Agro-Food 26%
Metal sector & related
industries 16%
BUSINESS PRINCIPLES
Country policy
• World-wide / more remote & difficult regions
• Economic interest both to Belgium & host country
• Delocalisation issue and corporate social
responsability « sustainable development »
Geographical Coverage by Region:
WORKING METHOD
1)
2)
Preliminary screening by BMI/SBI to determine whether
the project falls within the criteria.
Extensive analysis including:
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historical, financial and legal standing
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due diligence of the Belgian company
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market sector, market share, growth rate,…
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business plan/forecasts for 3-5 years;
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management information;
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funding requirement and usage & financial structure;
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the proposed financing deal;
The legal documentation — upon fulfillment of all
conditions precedent the funds will be disbursed to the
project.
⇒ From first contact to final approval: 2-3 months
3)
SUMMARY
Focus on
foreign
investments
of Belgian
SMEs
Capital of € 35,5 Mio
(main shareholders: SFPI, BNP
Paribas Fortis, ING)
+ external financing (endowments,
collaboration with regional entities,
(Sofinex, PMV) and EDFI colleagues
Support
economic
Semi public
financial
institution
SBI/BMI
growth
(greenfield,
expansion,
acquisition)
• Only investments in private
sector Belgian companies.
• Mezzanine financing/equity
participation (5-10 years,
grace period, local level)
Patient Capital
• Assistance & Mediation
services, active follow-up
Medium to
long term
co-financing
Tailor made approach
• Alignment of interests
Smart money
CASE STUDY
1) Sonaca Montreal (Canada)
=> subordinated loan of € 1,500,000
2) Exki (USA, New York)
=> minority participation of € 1,500,000
Why SBI ?
- Risk’s diversification
- Diversification of financing ressources
- Improvement of the financial structure
- Investment of SBI at local level
- Our experience over the last 40 years
SONACA Montreal : General presentation
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Sonaca Montreal is a 100% subsidiary of Sonaca North America which
in turn is a 100% subsidiary of Sonaca SA (Gosselies, Belgium)
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The group Sonaca is an international group (presence in Brazil, North
America, United States and China) mainly held by the Wespavia with
88,6% (80% hold by the Walloon region and 20% by the S.R.I.W.) and
by the S.F.P.I. (Société Fédérale de Participations et d’Investissement)
with 10,3%. The group employs 2,000 persons worldwide of which
1,600 in Belgium.
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Sonaca Montreal (based near Montréal) is active in the aeronautics
industry in the field of machinig, forming and assembly of large
chipsets (“panneaux d’ailes”) => Key wings elements for regional and
business jets
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The main customers are Bombardier, Embraer, Spirit, Israel Aircraft
Industries, Mitsubishi and Triumph for all of whom the company is a
key supplier
SONACA Montreal : project description
– In 2007, it was decided to extend the existing Canadian activities.
In that respect, SBI (together with the Sofinex) participated in the
financing of the investment project.
– The investment project consisted of :
• The increase of the building (from 12,000 m² to 20,000 m²)
mainly for the forming activity and the modernization of the
production processes
• The increase of the forging activity through the purchase of a
3rd machining table
• The replacement of the existing anodization line
• Various replacement investments
=> The total investment project amounted to $CAD 17 Mio
(+- € 13 Mio)
SONACA Montreal
Business jet
Regional jet
Sonaca Montreal in Mirabel
Chipsets (panneaux d’ailes)
SONACA Montreal : Financial proposal SBI
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Preliminary Screening presented to the Board of SBI on September 21, 2007.
Approval given by the Board for a participation of € 1,5 Mio through a
subordinated loan
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The due diligence of the project was realised in October 2007
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Final approval by the board of BMI on November 2007
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Structure of the agreement was as follows:
– Amount : € 1,5 Mio (split with Sofinex);
– Maturity : 7 years including a grace period of 2 years
– Interest rate : combination of a fixed rate + a variable interest rate
according to the realised EBITDA’s
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Due to very bad economic circumstances (financial and economic crisis
2008/2009), Sonaca Montreal had to be restructured in 2010 (capital increase
by the main shareholder, conversion of financial debts into equity, additional
grace period required, etc…)
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As of today, the company Sonaca Montreal is profitable and the financial
forecasts 2013 are quite good
EXKI : General presentation
• EXKI was founded in 2000 in Brussels by 3 former managers of
GIB (together with the group GIB itself) in order to lauch a new
concept in Brussels : the fast casual restaurant using only fresh
& natural ingredients
• The 3 brothers Dossche have joined the company shareholding
in 2003 and are the major shareholders next to the 3 founders.
• EXKI SA is a profitable company whith a strong financial
structure
Exki USA (New York, Manhattan)
- Further to the expansion of EXKI in Europe (Belgium, France,
Netherlands, Italy, etc…), the US market (Manhattan in
particularly) was chosen after extensive studies for:
– high population density;
– growing trend in the “healthy fast-casual” food segment not yet
saturated altough competitors as prêt à manger, le Pain Quotidien,
Dishes, etc…are already active on this market;
=> In the 1st step, 3 restaurants will be opened in 2014
in 3 differents type of locations (premium, mix and business
location) while the long term objective is to open more than 20
restaurants
Exki USA (New York, Manhattan)
• Preliminary Screening presented to the Board of Directors on
February 16th 2012. Approval to further investigate possible
commitment of € 1,25 mio under the form of an equity
participation at the level of EXKI USA
• The due diligence of the project was done in August 2012
• Final approval by the board of SBI on September 2012
• First Disbursment expected in December 2013
=> Financial structure of EXKI USA (capitalized at € 5,5 Mio):
– SBI/Sofinex will provide an equity participation of € 1,500,000
– PMV will also provide an equity participation of € 1,000,000;
– EXKI SA will bring € 3,000,000 (via SRIW, SRIB, Triodos bank and
the family Dossche)
Exit of the “invests” as from 2019 based on a multiple of the
realised EBITDA’s (via put & call options)
WHAT OUR CLIENTS SAY ABOUT US
"SBI is the image that we would like Belgium to have in the
world: stability, professionalism and pragmatism!"
(Pierre Mottet, CEO IBA)
http://www.youtube.com/watch?v=rrF2Ryj3-sg&feature=relmfu
"BMI is a financial partner who thinks along with us"
(Helena Vandenbeeck, Managing Director SIAT)
http://www.youtube.com/watch?v=zQ_eSRchgXU&feature=relmfu
"BMI is an entrepreneurial financial partner"
(Dirk De Cuyper, CEO Resilux)
http://www.youtube.com/watch?v=pSGwey2a5LI&feature=relmfu
To see and hear the above statements, please visit our company website:
http://www.bmi-sbi.be/en/index.html
..and/or click on the you tube movies:
http://www.youtube.com/watch?v=m5JJCvaFy_I (long version)
http://www.youtube.com/watch?v=Q4TI2UNmY90 (short version)
QUESTIONS & CONTACT DETAILS
Tervurenlaan 168 b9
1150 Brussels
Christophe DENIS (Senior Investment Officer)
Christophe.denis@bmi-sbi.be
tel: 32 2 776 01 03
fax: 32 2 770 66 38
www.bmi-sbi.be