Investor Presentation • Jun 18, 2019
Investor Presentation
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Paris June 19, 2019
We should all feel nothing but shame for the reputation that finance has earned itself in the last few years, but if you manage to guide healthy capital from successful businesses and the assets of families that wish to invest them intelligently in companies that want to grow, you are genuinely doing one of the most beneficial jobs in the world.
@TamburiTip
The information contained herein, particularly the ones regarding any possible or assumed future performance of the TIP Group, are or may be forward looking statements and in this respect they involve some risks and uncertainties.
Any reference to past performances shall not be taken as an indication of future performances.
These forward-looking statements may include statements regarding our (or our portfolio companies') plans, objectives, goals, strategies, future events, future revenue or performance, financing needs, plans or intentions relating to acquisitions, investments or capital expenditures, business trends or other information that is not historical information. Forward-looking statements are related to future, not past, events and are not guarantees of future performance. These statements are based on current expectations and projections about future events and, by their nature, address matters that are, to different degrees, uncertain and are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future, and, as such, undue reliance should not be placed on them.
TIP expressly disclaims and does not assume any responsibility nor liability in connection with any inaccuracies in any of these forward-looking statements or in connection with any use by any party of such forward-looking statements.
This document is being provided solely for information and may not be reproduced or redistributed.
This presentation does not constitute an offer to sell or the solicitation of an offer to buy any stock or securities.
Intrinsic value estimate of about 3,0 billion Euro of direct investments and clubdeals in leading luxury, health and technological companies
1) Minority investment in excellent companies
2) Unique network of Italian entrepreneurs
3) Outstanding returns for shareholders
12
investments in companies with worldwide leadership positions
aggregate annual revenues of the main investee companies
+140,5%*
total return T.I.P. (last 5 years)
| 42% | 20% | 17% | 15% | 6% |
|---|---|---|---|---|
| Technology and innovation | Retail, fashion and high | Health, tourism | Luxury and design | Other |
*as at 14/06/2019
end food
and silver age
industries
Not only a financial investor. A real long term partner
A UNIQUE NETWORK of more than 100 entrepreneurial family offices able to provide uncommon industrial
know how
PERMANENT CAPITAL, since the holding structure allows soft and rewarding exit paths, if any
CEO with more than 40 years of professional experience in investments and financial advisory aimed at really support entrepreneurs
TEAM of about 15 professionals strongly focused on constantly creating shareholders' value. Experience and dimension of the team allow lean and fast understanding of the issues and decision about investments
Deep understanding of FAMILY DYNAMICS and ability to simplify governance. Alignment of interest with entrepreneurs and investee companies that always retain the operating management
| >3,0 billion Euro considering direct investments and club deals so far finalized |
|||
|---|---|---|---|
| StarTIP Tamburi Investment Partners S.p.A. |
|||
| Target revenues >200 million Euro |
(TIP at 28,57%) Target revenues 30 and 200 between million Euro |
(TIP at 20%*) Target revenues >200 million Euro |
(TIP at 100%) none |
| Equity size x deal <30 million Euro |
Equity size x deal between 20 and 50 million Euro |
Equity size x deal >30 million Euro |
Target companies Innovation and digital focus |
| from 2001 investments finalized >1,6 billion Euro |
from 2014 investments finalized >325 million Euro |
from 2016 investment finalized > 250 million Euro |
from 2017 investments finalized ~30 million Euro** |
| Liquidity available >100 million Euro |
available capital to be invested ~65 million Euro |
available capital to be invested 380 million Euro |
available capital to be invested ~100 million Euro |
*without considering tracking shares on specific investments **listed companies are valued at market price (14/06/2019)
Partial exit :
*without considering the original investment made before 2015
Complete divestment in case of 100% tender offer, industrial integration and FCA disposal
the largest coworking space management company in Europe
first investment
StarTIP Tamburi Investment Partners S.p.A.
**without considering Ferrari
TIPO invested about 7 million euro in AAA between 2014 and 2015.
On November 2015 AAA has been listed on Nasdaq.
On October 2017 Novartis has announced the launch of a tender offer on AAA shares of a price per share equal to 2,6x the IPO price. The capital gain for TIPO has been of about 15 million euro.
multiple on capital invested 3x in less than 3 years
TIP invested about 30 million euro in Roche Bobois between 2013 and 2014.
On July 2018 Roche Bobois has been listed on Euronext.
Market value vs capital invested 3x
TIPO invested about 32 million euro in iGuzzini between 2015 and 2016.
On March 7, 2019 AB Fagerhult has completed the acquisition of iGuzzini illuminazione S.p.A. for an amount of 375.9 million Euro (o/w 284.5 million paid in cash and 91.4 million in new Fagerhult shares).
The combining of the two companies generates one of the major European Group in the professional lighting sector.
TIPO has achieved a capital gain of approximately 60 million Euro, in addition to the dividends already collected.
Multiple on capital invested of 3x
| Industry | Book value | Analyst consensus value(1) |
Med term intrinsic value(2) |
|---|---|---|---|
| Luxury and design | 94 | 191 | ~202 |
| Technology and innovation |
143 | 445 | ~575 |
| Retail, fashion and high-end food |
248 | 237 | ~302 |
| Health, tourism and silver age |
108 | 195 | ~230 |
| Other industries (incl. advisory) |
55 | 72 | ~91 |
| Total investments |
620 | 1.113 | ~1.370 |
1.Consensus estimates: includes the analytical valuation of each investment based on last available analyst estimates (Bloomberg)
2.Intrinsic value estimates: analytical evaluation of each investment elaborated by TIP considering the medium-term outlook of the companies (gross of debt).
*Using the multiple implied in the valuation of listed investments (i.e. 2,7x), the theoretical medium term intrinsic value of non listed investments would increase substantially.
TIP price, target price and Net Intrinsic Value Estimate evolution last 5 years
as at 14/06/2019
value as at 14/06/2019 of treasury shares freely distributed to the shareholders and of warrants 2010/15 on the last trading day plus the price as at 14/06/2019 of warrants 2015/20.
Value of daily trading exchange (Euro) Number of trades (#)
| warrant 2015 -2020 | ||||||
|---|---|---|---|---|---|---|
| Exercise window | Strike price (conversion ratio 1:1) |
|||||
| 1 – 30 June 2019 |
5,00 euro per share | |||||
| 1 – 30 June 2020 |
5,41 euro per share |
For the warrant holder > 20% upside in case of exercise vs TIP stock current price
warrant TIP 2010 - 2015
Warrants outstanding: 20.302.835.
Reference price of Borsa Italiana on 24/7/2015 (0,1784 euro)
Additional proceeds estimated at about 100 million euro from the 4th and 5th exercise windows
*Consolidated group equity (including minorities)
**including associated companies measured under the equity method, AFS financial assets and financial receivables ***results reported in continuity with the accounting principles of the previous years
Average profit before taxes in the last 8 years 43 million Euro
| tour operating, aviation, resorts, hotels | EBITDA CAGR 2016-2018: +29,4% |
||
|---|---|---|---|
| 1.682 | |||
| 2018 highlights |
1.142 | 1.224 | |
| Acquisition of Eden Viaggi, the main Italian competitor ✓ |
6 0 |
||
| Acquisition of the management contract of two important resorts in Sardinia: Tanka ✓ |
|||
| Village and Colonna Resort |
2016 | 2017 | 2018 |
| New hotel in Venice ✓ |
|||
Hearing aids
✓ Record results in 2018 for the fourth year in a row, Ebitda and net profit at historic highs
✓ Strong network expansion in France, Germany and Canada
✓ Record results: revenues +16%, Ebitda +37%
✓ Extraordinary year for numerous strategic initiatives: GAES acquisition, launch of Amplifon branded product and first JV in China
Q1 2019: outstanding revenue growth (+25% vs Q118) and strong improvement in profitability
2018 highlights
✓ Positive NFP
| Pumps and hydraulics system |
CAGR EBITDA '16 -'18: +20,6% |
||||
|---|---|---|---|---|---|
| 2018 highlights |
923 | 1.087 | 1.279 | ||
| In the last two years, sales went up by ✓ |
39%, Ebitda by 45%, net income by 83% |
289 | |||
| On February 25, 2019 the company has ✓ |
announced the acquisition of the Canadian company |
||||
| Hydra Dyne Tech, headquartered in Ontario |
(35,8 million in sales) |
||||
| 30 M&A deals from entrance of TIP ✓ |
2016 | 2017 | 2018 | ||
| Q1 2019: revenues +10%, Ebitda margin 23%, |
net income +16,5% vs Q1'18 |
| Digital | Magics | (StarTIP | at | 23%) | is | the | main | Italian | ||
|---|---|---|---|---|---|---|---|---|---|---|
| incubator: | ~1.400 | projects | analysed | every | year, | 50 | ||||
| million | invested | directly | and | through | club | deals, | 61 | |||
| start-ups in portfolio and 7 exit realized. |
Buzzoole (StarTIP at 17%) is the European leading influencer platform with more than 2 billion indexed profiles, 260 k registered users and +850 clients.
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