FAMILY «IMPACT INVESTMENT» INVESTISSEURS & PARTENAIRES April 2013
WHO ARE WE? A family of financial vehicles belonging to Impact Investment We focus on social, economic, environmental and governance impacts of our investments, in addition to their financial returns about which we are very concerned. Whose mission is to promote the development of a sustainable private sector in Africa, by financing and supporting a new generation of African entrepreneurs. Responsible entrepreneurs who want to grow a sustainable business that will contribute to the development of their country. Whose operation field is located exclusively in Sub Saharan Africa and the Indian Ocean. INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 Page 2
KEY FIGURES A 11 year old success story Creation in 2002 by Patrice Hoppenot, a Private Equity professional, co-founder of BC Partners Succeeded by Jean-Michel Severino in 2011, former Vice President of the World Bank (1996-2001) and former CEO of l Agence Française de Développement (2001-2010) 2 investment vehicles I&P Développement (IPDEV), historical vehicle, capitalized up to 11 million euros I&P Afrique Entrepreneurs (IPAE), investment fund of 50 million euros, launched in 2012 For minority stakes whose amounts range from 50 K to 1.5 million euros 40 partner companies in Africa Located in 11 African countries : Senegal, Mauritania, Mali, Niger, Ivory Coast, Benin, Burkina Faso, Cameroon, Uganda, Namibia, Madagascar Operating in diversified sectors : agro-industry, health, building, etc. Economic, social, environmental and governance impacts +30% revenue in the companies portfolio in 2011 1.400 emplois maintained or created in 8 years over 30 companies 1.5 million taxes generated annually, allowing more public spendings, i.e. 300 more children in school every year INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 3
Why Africa? Africa has over the past decade an unprecedented improvement Based on structural phenomena, demographic and geographic, it is accompanied by an increase in exports, improved terms of trade, an increase in final consumption and significant transfers of migrants. Characterized by good macroeconomic indicators (inflation decreasing: from 15% in 2000 to 8.1% in 2011, more controlled foreign debt from 63% of PIB in 2000 to 22.2% in 2012). However, its growth is heterogeneous, fragile and insufficient 48 Sub-Saharan African countries do not face the same problems of development. Balance of commodity exports undiversified weakens by exposing them to the volatility of world economies. In 2011, the African IHD remains below 52% in the North American IHD, against 56% in 1980. Many companies driving development of the continent, still lack access to long-term financing. They form what is called the «MISSING MIDDLE». INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 4
WHAT IS THE MISSING MIDDLE? LARGE COMPANIES (INVEST.: >2M ) SMALL AND MIDDLE SIZE COMPANIES (INVEST.: 50K TO 2000K ) > LOCAL BANKS, INTERNATIONAL INVESTORS FINANCING GAP > I&P INVESTMENT TARGET Investing in SMEs is difficult considering: A Lack of reliable accounting A lack of management culture The high cost of monitoring and evaluation in comparison with the invested amounts A high cost for formalization MICRO-ENTERPRISES (INVEST.: 100 TO 50K ) > MICROFINANCE INSTITUTIONS INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 5
OUR PHILOSOPHY Vision The development of profitable and responsible SMEs will contribute to a socially and environmentally sustainable growth in Africa. Mission Promote African entrepreneurs through a trust-based relationship on financial, strategic and operational levels in one hand, environmental, social and governance levels on the other hand. Set of values ENTREPRENEURSHIP SPIRIT/ COMMITMENT TO DEVELOPMENT/ INTEGRITY/ EXCELLENCE INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 6
OUR MODEL : THE PARTNERSHIP WHEEL I&P is an active partner who brings expertise in finance and management in an entrepreneurial approach. I&P wishes to establish with the entrepreneur a trusting relationship in the long run. Interventions are at three levels. 1. Finance Minority equity, loans, 2. Monitoring Strategic, Management, social and environnemental,. 3. Technical assistance Organisation, Training, HR, mentoring and governance, technical, commercial and marketing, INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 7
2 INVESTMENT VEHICLES WITH VARIABLE GEOMETRY Investisseurs & Partenaires (I&P) TARGETS AMOUNTS FINANCIAL RETURNS ESG IMPACTS I&P Développement (IPDEV) Small size companies < 300 K euros + ++++ I&P Afrique Entrepreneurs (IPAE) Small and Middle size companies > 300 K euros and <1,5 M euros +++ +++ NUMBER OF INVESTMENTS 30 50 in 5 years INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 8
OUR GOALS: GENERATE IMPACTS AND EVALUATE E> Fight against climate change, assessing and reducing the carbon footprint of our participation, S> Move towards the concept of decent work creating jobs, promoting the extension of social security coverage, ensuring workers' rights and promoting social dialogue and equality between men and women G> Increase the formalism of portfolio companies in the fight against corruption and contributing to good governance in companies Improve our Impact ESG Deepen our Economic Impact The ambitions of I&P Provide an advocacy role on the reality of the African growth, the emergence of a new generation of entrepreneurs and opportunities offered by the Capital Investment in Africa Participation in the structuring of production chains and local distribution. Generate taxes through the activities of our partner companies and allow more public spending Through the IMF, increase funding opportunities many borrowers Play the role of financial catalyst Encourage Awareness INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 9
A DEDICATED FRANCO-AFRICAN TEAM CEO JEAN-MICHEL SEVERINO Investment Team Investment Directors Investment Officers PIERRE CARPENTIER LARISSA MONTHE (Cameroon) MIALY RANAIVOSON (Madagascar) JÉRÉMY HAJDENBERG THOMAS LAURUOL (France) PATRICE GOMIS (Senegal) SÉBASTIEN BOYÉ (Ghana) FESTUS WILLIAM LARTEY AMOYAW (Ghana) SERGE TOURE (Ivory Coast) IPDEV dedicated Investment team to the new strategic project DAVID MUNNICH HUGUES VINCENT-GENOD Support Team Advisors LAETITIA LATREILLE (CFO) ELODIE NOCQUET (Financial and ESG Officer) ISABELLE COLIN (HR and Administrative Officer) EMILIE DEBLED (Communications & PR Officer) PIERRICK BARATON (Research and impact assessment Officer) ALEXIS THIROUIN (Financial Management Officer) BRUNO CAIRE ANNIE FERTON DOMINIQUE PERREAU JEAN-LOUIS MONTESQUIOU INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 10
INDIVIDUALS, PRIVATE AND PUBLIC INVESTORS INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 11
OUR INVESTMENT TARGET: SMALL AND MEDIUM SIZE COMPANIES AND MICROFINANCE INSTITUTIONS Small and Medium-sized, growing companies Managed by local teams or entrepreneurs Within the formal economy In various sectors (health, food, agriculture, construction, distribution, energy, services, microfinance institutions, etc.) Showing prospects for value creation and local social, environmental and governance. INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 12
A DIVERSIFIED AND BALANCED ENTERPRISE PORTFOLIO IPDEV IPAE HEALTH FINANCE/ MICROFINANCE Duopharm, Colaser, Camed, Genemark, Saphar, Vue & Vision, Loop, Nutrizaza Saint Louis Finance, Fides Bank,Namibia, Acep Burkina, Sinergi, ACEP Cameroun, ACEP Madagascar, Afrique Emergences Nest for All, Uganda Finance Trust, OXUS Network, ACEP Madagascar TEXTILE Ken Atlantic, BUILDING MATERIALS, EQUIPMENT Cofipêche, Equip Plus, CDS, Bhélix, Carotech Bénin, Carotech Mali Rica Services, Delta Irrigation, SOFAMAC SERVICES Legeni, Trainis ITG Store, DISTRIBUTION Nomad AGRO-INDUSTRY Laiterie du Berger, Biotropical, Sagex, Philéol, IOT TRANSPORTATION CAT Logistics Bakou Logistics, INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 13
BIOTROPICAL AGRO INDUSTRY CAMEROON Entrepreneur : Jean-Pierre Imélé In portfolio since : 2007 I&P Share : 25,8% Employees : 47 Biotropical is a company producing and exporting organic tropical fruit (mangoes, bananas, pineapples, papayas...) which are exported fresh, frozen or dried to France and other European Union countries. Biotropical is certified by Ecocert. Jean-Pierre Imélé, is an agronomist working in the organic sector for 25 years. He settled in Cameroon in 1999 to develop organic farming in training and mentoring of farmers, and created the company Biotropical. To continue its growth, the company needed to expand and secure its supply of raw material, reducing the share of collecting and developing his own productions. I&P Partnership I&P is committed alongside Biotropical to enable: The expansion of plantations The establishment of a new plant to increase production capacity Impacts 100 jobs created or maintained between 2006 and 2011 Revenue growth of nearly 70% between 2006 and 2011 Almost a hundred small local producers are trained and accompanied by Biotropical which processes and exports their products Structuring of Bio industry Cameroon, substitution conventional input by organic inputs INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 14
LAITERIE DU BERGER AGRO INDUSTRY SENEGAL Entrepreneur : Bagoré-Xavier Bathily In portfolio since : 2006 I&P Share : 25,6% Employees: 135 Co investors: Danone Communities, Grameen Credit Agricole and Phitrust La Laiterie du Berger is the only Senegalese enterprise to manufacture dairy products from local fresh milk, collected from more than 800 farmers in the area of Richard Toll, in northern Senegal. La laiterie du Berger s product, distributed in more than 6,000 outlets in late 2012, facing stiff competition from products made from imported milk powder and dairy products from the informal economy. Bagoré-Xavier Bathily was born in Dakar and studied veterinary medicine in Belgium. He then worked in France and for an NGO in Mauritania. In 2005, with strong support from his brothers and sisters, he created La Laiterie du Berger for to enhance the production of fresh milk Senegal. I&P Partnership Investment at the inception of the company, allowing it to start Since the original contribution to strategic thinking Gradual introduction of management tools Contribution to the broadening of the shareholder base Technical assistance on various topics (operational and financial) Impacts 800 farmers and their families now have an outlet for their milk. The incomes of these farmers have tripled since the inception of the company and became regular Contribution to the structure of the dairy industry in Senegal Marketing of healthy products and in small doses, accessible to a popular clientele INVESTISSEURS & PARTENAIRES PRESENTATION - AVRIL 2013 PAGE 15
LEGENI OFFICE STUDIES NIGER Entrepreneur : Adamou Assane In portfolio from 2004 to 2012 Employees: 50 Website : http://www.legenisa.5u.com/index.htm Legeni is the first private laboratory of geotechnical and environmental studies in Niger. These studies (soil testing and materials, environmental impact studies), mandatory in theory, are essential to the professionalization of the construction sector of the country. Niger was available until 2006, only one public ill-equipped laboratory. Since its inception in 2004, LEGENI itself as the reference laboratory in the country thanks to the quality of its equipment and its benefits. The company has grown rapidly, driven primarily by mining investments in the north. After working for many years as head of maintenance in the Areva mining subsidiaries in the north, Adamou ASSANE joined the agency executing the work of the World Bank in Niger. It is through this experience that he perceived the lack of a geotechnical laboratory quality in Niger. He seized the opportunity by creating LEGENI in 2004. I&P Partnership I&P has occurred: As a founding shareholder of the enterprise after accompanying the entrepreneur in writing of its initial business plan By providing at LEGENI, a technical assistance to business start-up, through a training mission for a person with a long experience in the trade Repeatedly to finance additional investments to expand as and when the range of services offered to its customers Impacts 50 jobs created, much of skilled jobs Contribution to the professionalization of the Nigerian construction sector through analyzes before and during construction to ensure the quality of buildings and structure INVESTISSEURS & PARTENAIRES PRESENTATION - AVRIL 2013 PAGE 16
CAMED HEALTH MALI Entrepreneur : Malick SY In portfolio from 2003 to 2011 Employees : 25 Camed is the third largest pharmaceutical distributor in Mali and the market leader in generics. Specializing in generic drugs, CAMED was subsequently transformed into universal distributor and offers a diverse range of pharmaceutical products. Malick SY is a doctor of pharmacy degree from the University of Bamako. At the end of his studies he refused job offers and decided to start a business of import and distribution of pharmaceutical products, with a motorcycle and a little money borrowed from family. His business sense, his strategic sense and his ability to surround himself and his team manager allowed him to make CAMED remarkable success I&P Partnership I&P is committed alongside Camed to : Contribute to strengthen management structures and business accounting Invest in storage space and equipment; Organize the marketing process and expanding the product portfolio; Help mobilize bank loans to finance the supply of drugs. Impacts 10 jobs created Development of a range of generic products at affordable prices INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 17
SAINT LOUIS FINANCE MICROFINANCE SENEGAL In portfolio since : 2011 I&P Share : 19,9% Employees : 65 CEO : Philippe Couteau Saint Louis Finance is a new microfinance institution that aims to provide financial services to people in urban and rural areas located in northern Senegal: solidarity and individual loans, savings, insurance and the future of mobile banking. Headquartered in St. Louis. It opened an office in Louga and deploy a new agency about a year in the North, where the supply is lower than in Dakar. It has the specific expertise of consultants FIDES in the establishment of microfinance institutions business (corporations) to the rural world. I&P Partnership I&P was the first investor to confirm its commitment to Saint Louis Finance and accompanied him in setting up the project I&P now participates in strategic discussions with him (Governance, etc.) Impacts Access to financial services in rural and peri-urban (already 6,500 borrowers and savers 7500) Objective of demonstrating the viability of microfinance in private form in West Africa, where NGOs and cooperatives dominate INVESTISSEURS & PARTENAIRES PRESENTATION - AVRIL 2013 PAGE 18
CAROTECH MALI EQUIPMENT MALI Entrepreneurs : Malick SY and Aïcha SY In portfolio since : 2006 I&P Share : 31% Employees : 21 CAROTECH Mali is a production of tiles and pavers cement based in Bamako. The process can not use the oven in a country where power is very expensive. The CAROTECH Mali project is part of a growing market in Mali, powered by the very significant and rapid urban growth in the major cities of the country, especially in Bamako. Malick Sy, is a doctor of pharmacy and created CAMED, a leading pharmaceutical distributors including I&P has long been a shareholder. It is associated with I&P to create CAROTECH Mali, adopting the technology used by a Nigerian company. The company is headed since its inception by Aicha Sy, the wife of Malick. Aicha has a degree in management science and previously worked in the microfinance sector. Its rigorous management, his acute business sense and his natural authority allowed him to lead very successful development of the company I&P Partnership Beyond the financial investment, I&P is committed alongside CAROTECH Mali for Strengthen its structures through several technical assistance missions Provide the company with a strong management information system (GIS) Impacts 721 direct jobs were created between 2007 and 2011 Contribution to the development of local industry as a substitute for imported products often INVESTISSEURS & PARTENAIRES PRESENTATION - AVRIL 2013 PAGE 19
DUOPHARM HEALTH SENEGAL Entrepreneur(s) : 12 pharmacists founders, including Jules Charles Kebe, CEO In portfolio since : 2011 I&P Share : 30% Employees: 29 Website : http://www.duopharm.sn New player in the pharmaceutical market in Senegal, Duopharm was born from the merger of nearly 150 pharmacists Senegalese shareholders. In two years, it has established itself in the Senegal pharmaceutical landscape, thanks to its proximity marketing strategy. The business of DUOPHARM is characterized by high competitive intensity and a strong presence of multinational companies of European origin. However, this healthcare market is experiencing very strong growth in Senegal, where health spending per capita increased sharply since the early 2000s. Thus since 1999, the number of pharmacies has doubled and the drug market has an annual growth of around 6%. Jules Charles Kebe, CEO, was medical representative for Pfizer and led the COPHASE second wholesaler-distributor of Senegal from 1999 to 2002. I&P Partnership I&P is committed alongside DUOPHARM: Deepening with developers, and with the support of a pharmacist who had a similar experience in Mali, the initial financial projections and action plan Providing funding to the company in its creation and contributing to successive capital increases Including participation in the financial strategy Impacts Emergence of a local player in the pharmaceutical distribution (both leaders are subsidiaries of French companies) INVESTISSEURS & PARTENAIRES PRESENTATION - AVRIL 2013 PAGE 20
TRAINIS TRAINING MALI Entrepreneur : Daouda Coulibaly In portfolio since : 2010 I&P Share : 35% Trainis society, founded in 2008 by Daouda Coulibaly, offers general high-level training in management. These courses are focused on one to three weeks and led by a panel of trainers African or European experts. Daouda Coulibaly was educated in Mali before getting a scholarship to study in France. Parallel to his university studies in geography, he was self-taught in computer and creates one of the most visited African websites. On his return to Mali, he created a company in the field of computing. This resale business equipment allows him to see that there is a high demand for computer courses right level. So he started a training successfully, then diversified into the provision of international management seminars, with higher added value. It has mobilized high quality trainers around general management training on topics such as project management, HR, and strategic management. Trainis responds to a strong need for training among African executives who want to get in line with international standards. In a context of openness to globalization, these managers are looking to accelerate their career so far hampered by basic training deemed insufficient. I&P Partnership I&P is committed alongside Trainis: By identifying influencers and prospects of different "product lines" of Trainis Participating in the development of the strategic development plan for 3 years Providing support to the design and formalization of communication policy of the company Impacts 10 jobs created Creating a sub-regional player in professional training aimed at African executives INVESTISSEURS & PARTENAIRES PRESENTATION - AVRIL 2013 PAGE 21
Thank you for your attention Investisseurs & Partenaires communication@ietp.com 01 58 18 57 11 INVESTISSEURS & PARTENAIRES PRESENTATION - APRIL 2013 PAGE 22