BCP Capital - Millennium BCP

Millennium Fundo
de Capitalização
Important Notice
DISCLOSURE
This presentation has been prepared by BCP Capital, Sociedade Capital de Risco S.A. (“BCP Capital”), a subsidiary of Banco Comercial Português, S.A.
(Millennium bcp). BCP Capital is the management entity and legal representative of Millennium Fundo de Capitalização, FCR (“MFC” or the “Fund”).
BCP Capital, Sociedade Capital de Risco S.A. , headquartered at Avenida Professor Dr. Cavaco Silva - Parque das Tecnologias, Edifício 1 – 2744-002 Porto
Salvo, with a share capital of 2.000.000,00 Euros, holder of company registration and tax number 501 731 334.
Millennium Fundo de Capitalização, FCR is a private equity fund incorporated in accordance with Decree-Law 375/2007, of the 8th November.
DISCLAIMER
This presentation has been prepared solely for information purposes. It is not intended to form the basis of any investment activity or any decision to enter into
any potential transaction. Nothing contained herein constitutes any form of contract, commitment, advice or recommendation, including legal, tax or other, nor
it is to be relied upon in making an investment or other decision. In all cases interested parties should be familiarized with the Fund´s articles of association and
conduct and rely upon their own independent investigation and analysis and shall be entirely responsible for their investment or other decisions.
While the information contained herein is believed to be accurate, no representation or warranty, express or implied, is or will be made in relation to, and no
responsibility, liability or duty of care is or will be accepted by BCP Capital, Millennium bcp, or the group of companies controlled by Millennium bcp (Millennium
bcp and such companies together the ‘Millennium bcp Group’), or any directors, officers, representatives, employees, advisers or agents of the Millennium bcp
Group, as to, or in relation to, the accuracy, reliability, adequacy or completeness of this presentation or any information herein. Accordingly, none of
Millennium bcp Group and any directors, officers, representatives, employees, advisers or agents of the Millennium bcp Group shall be liable for any direct,
indirect or consequential loss or damage suffered by any person as a result of relying on the accuracy of any information or any statement in this presentation or
any errors therein or omissions therefrom.
Except where otherwise indicated, this presentation speaks as of the date hereof and may change at any time without notice. In furnishing this presentation,
BCP Capital does not undertake any obligation to provide the recipient with access to any additional information or to update any information contained herein
or to correct any inaccuracies in any such information that may become apparent.
Millennium bcp Group is a diversified financial services group, providing funding and other commercial and investment banking products and services, and
maintains multiple client relationships across industries and regions and has, and is required to maintain, procedures that are designed to identify, manage and
monitor potential conflicts of interest. It is understood that nothing contained herein shall be deemed to represent the opinions or assessments that would be
produced by other companies or departments of Millennium bcp Group.
This presentation does not constitute an offer or invitation for the sale or purchase of securities or any businesses or assets or to adopt any investment strategy.
In particular this document does not constitute or form a part of any offer or solicitation to sell or purchase or subscribe securities in the United States, Canada,
Australia, Japan, or in any other jurisdiction. Recipients are required to inform themselves of, and comply with, all restrictions or prohibitions that may apply in
certain jurisdictions and neither BCP Capital or Millennium bcp accept liability to any person in relation thereto. This presentation and/or any other document
related thereto are for informational purposes only and none other.
2
Agenda
Who we are
Positioning
Investment Approach
Investment process
MFC Added Value
3
Who we are
Millennium Fundo de Capitalização, FCR (MFC, or the Fund) is a private
equity fund, primarily focused on growth capital, targeting mature small
and mid cap Portuguese companies with valid build up and expansion
projects
Managed by BCP Capital, a subsidiary of Millennium bcp
Set up in June 2013, with an initial capital of 30 million euros, the Fund had
a net asset value of c.98 million euros as of June 2016
The Fund is under the supervision of the Portuguese securities market
commission (“CMVM”).
We aim to act as catalyst for growth, working closely with the
companies’ management and other stakeholders in identifying and
capturing the value creation potential
4
Positioning
Focus on development/expansion capital
 Investment opportunities in later stage companies with growth
potential

Venture
Capital
Private
equity
Investment
Investment in start
up and early stage
companies.
Growth Capital
Targets later stage,
mature companies,
with proven business
models. Significant
minority investments
aiming to support
business development
and/or operational
improvement projects.

Buy outs
The investor
acquires controlling
interest in the
target companies.
5
Investment Approach
 FOCUS ON GROWTH AND DEVELOPMENT POTENTIAL
SELECTION FRAMEWORK
 Proven business model
 Operating in attractive
industries with growth and
development potential
 With a business development/
expansion strategy
ELIGIBLE INVESTMENT
PROJECTS
 Expansion plan to new markets
or segments (e.g. international
markets)
 Increase of production capacity
 Operational improvement
projects
 New products/services
development plan
 Commercialization and
distribution structures
development plan
GUIDELINES
 Significant minority investments
in equity and/or quasi equity
 Resulting in an increase in the
company’s equity capital
 Possible investment in
subordinated debt issued by the
company, as long as other
shareholders subscribe in
proportion
 Subject to satisfactory due
diligence process and
shareholders’ agreement
 PARTNERSHIP AND RISK SHARING PHILOSOPHY
6
Investment Approach
INVESTMENT CRITERIA
 Industry attractiveness (e.g., contribution to
GDP, growth record and potential,
employment, export potential , innovation)
 Business model analysis
 Operating and commercial capacity
QUANTITATIVE GUIDELINES
Sales
up to 250 M€
EBITDA
>0
Ticket
up to 15 M€
% stake
15% to 49%
 Quality of the management team
 Financial performance and position (capital
structure, operating P&L, profitability)
7
Investment process
Initial
contact
with the
company
Access to
information
Main steps of the investment process:
Institutional
information
Overview of
business plan and
strategy
Assessing fit
within investment
criteria/guidelines
Shareholders’
Agreement
and share
capital
subscription
Memo of
Understanding
(MoU)
Detailed analysis
 Industry
 Business
model
 Financial
 Corporate/
governance
 Business plan
 Valuation
Term sheet
negotiation
 Financial terms
 Governance
 Other
Due Diligence
(financial,
legal, tax,
other)
Negotiation
of final
terms of the
transaction
 Independent
advisors
8
MFC Added Value

Improved financial robustness, development of the organizational structure and
corporate governance, enhanced profile with stakeholders

A partnership and risk sharing approach to each investment project

A truly independent approach, results-oriented and with a special focus on management

Assist the management and shareholders in evaluating business development projects, deploying BCP
Capital´s financial expertise and experience in investing, and in monitoring and managing its portfolio
companies

Support international expansion projects, leveraging on Millennium bcp’s international network and
footprint
9
Rua do Ouro, 130, 2º andar 1100 – 060 Lisboa
Email: bcp.capital@millenniumbcp.pt
Tel: + 351 211 131 500