1. Présence à l'Assemblée
2. Désignation d'un ou plusieurs scrutateurs et d'un secrétaire pour la formation du bureau de l'assemblée
3. Compte rendu sur d'éventuels conflits d'intérêts
4. Présentation des principaux développements et risques rencontrés par la Société durant l'exercice
2020 et perspectives
5. Présentation des résultats financiers
6. Lecture du rapport de gestion sur les comptes annuels et consolidés pour l'exercice 2020
7. Présentation des rapports d'audit du réviseur d'entreprises agréé
8. Approbation des comptes annuels de l'exercice 2020
9. Affectation du résultat de l'exercice 2020
10. Approbation des comptes consolidés 2020
11. Décharge aux Administrateurs de la Société pour l'exercice de leur mandat 2020
ORDRE DU JOUR
12. Compte rendu des émoluments alloués aux Administrateurs-délégués durant l'exercice 2020
13. Approbation du rapport annuel de rémunération
14. /15./16./17./18. Renouvellement d'Administrateurs
19. Fixation de la rémunération des membres du Conseil d'administration
20. Nomination d'un nouveau Réviseur d'entreprises pour 2021
21. Autorisation d'acquérir des actions propres
22. Divers
ORDRE DU JOUR
1. PRESENCE A L'ASSEMBLEE
Le nombre de votes représentés et à distance sera présenté oralement par le Président de l'Assemblée
2. BUREAU DE L'ASSEMBLEE - DESIGNATION DU
PRESIDENT, SECRETAIRE ET SCRUTATEURS
Le Président François Tesch nomme le secrétaire et l'Assemblée générale élit le scrutateur
- secrétaire: Betty Kizimalé-Grant
- scrutateur: Alain Huberty
3. COMPTE RENDU SUR D'ÉVENTUELS CONFLITS D'INTÉRÊTS
Lors de la réunion du Conseil d'administration du 27 avril 2020, Monsieur François Tesch s'est abstenu au point 4 de l'agenda concernant la rémunération du Président
Exécutif pour 2020.
Lors de la réunion du Conseil d'administration du 12 juin 2020, Monsieur Frank Donck s'est abstenu au point 2 concernant la participation de Luxempart à l'augmentation de capital de la société belge ATENOR S.A.
Lors de la réunion du Conseil d'administration du 8 décembre 2020, Monsieur Olaf Kordes s'est abstenu au point 6 concernant la prolongation de son contrat d'administrateur délégué.
4.
PRINCIPAUX DÉVELOPPEMENTS 2020 ET PERSPECTIVES
• Bonne résistance du portefeuille
• Impact limité de la pandémie Covid
• Pas d'exposition significative du portefeuille aux secteurs particulièrement touchés comme le transport, tourisme et loisirs ou distribution classique
55% de nos sociétés augmentent leur chiffre d'affaires en 2020
63% de nos sociétés améliorent leurs résultats
Le portefeuille de Fonds d'Investissement augmente sa valeur de 7.9%
Principaux développements 2020 et perspectives
Très bonne résilience du portefeuille
▪ Très bon maintien des résultats financiers des sociétés en portefeuille
▪ Niveaux de valorisation se maintiennent sur les marchés financiers mondiaux suite au rebond général du mois de novembre (annonce démarrage vaccination Covid)
▪ Les cessions profitables de l'année font que la position de trésorerie se maintient à un niveau élevé, donnant à votre société de la stabilité et la possibilité de saisir des opportunités futures
Principaux développements 2020 et perspectives
Retour total pour l'actionnaire à 10%
Actif net par action
90.00 €
80.00 €
70.00 €
60.00 €
50.00 €
40.00 €
30.00 €
20.00 €
10.00 € - €
01/01/2018
* Retour total pour l'actionnaire (dividende inclus)
▪ Poursuite de la croissance de l'Actif Net, de 8% en 2020. En additionnant le dividende de 1.48 € par action versé en 2020, le retour total pour l'actionnaire s'élève à 10%
▪ Il est proposé de verser aux actionnaires un dividende au titre de l'année 2020 de 1.60 € par action en mai 2021, en croissance de 8,1% sur 2020.
1.65 €
Evolution du Dividende
1.60 €
01/01/2019
01/01/2020
1.55 €
1.50 €
1.45 €
1.40 €
1.35 €
1.30 €
1.25 €
1.20 €
+8.1% | ||
+5.0% | 1.41 € | 1.48 € |
1.34 € | ||
2018
2019
2020
2021
Principaux développements 2020 et perspectives
Légère adaptation de la stratégie dans la continuité
INVESTISSEMENTS DIRECTS
FONDS D'INVESTISSEMENT
• Rester le principal contributeur à la croissance de l'Actif
Net
• Tout en restant généraliste, focaliser sur certains secteurs préférés pour leurs perspectives et nos expériences
• Jouer un rôle actif dans la création de valeur
ObjectifConstat
• La taille de Luxempart ne permet pas d'investir des montants inférieurs à € 25m
• Le portefeuille actuel est trop volumineux et à valeur moyenne trop basse
• Une partie de ce portefeuille existant ne permet pas de jouer un rôle actif (co-investissements passifs)
• Concentrer le portefeuille sur moins de lignes à taille plus importante (ligne en moyenne >€50m)
• Focaliser les nouvelles transactions sur des secteurs porteurs en ligne avec la stratégie
• Continuer à renforcer les équipes d'investissement
• Servir de moyen de diversification à l'Investissement
Direct
• Constituer un contributeur important et stable à l'Actif
Net : Objectif de € 500m d'actifs nets d'ici 5 ans
• Pendant la phase de renforcement du portefeuille, l'autofinancement de l'activité doit être visé
Objectif
Constat
• Le portefeuille existant est en redondance avec l'Investissement Direct
• L'essentiel du portefeuille est investi en Europe
• Il y a une exposition réduite à des classes d'actifs alternatives (venture / capital-croissance / infrastructures)
Mesures àprendre
Mesures àprendre
• Limiter des nouveaux engagements en Europe et se focaliser sur l'Amérique du Nord, puis l'Asie
• Avoir recours à des compétences externes pour faciliter l'accès à ses nouvelles géographies et classes d'actifs et renforcer l'équipe interne
• Diversifier les engagements vers du venture et du capital-croissance
Principaux développements 2020 et perspectives
Premières concrétisations de cette stratégie : concentration du portefeuille
▪ Investissements Directs pour € 88m et en Fonds d'Investissement pour € 24m, soit € 112m d'investis.
▪ Cessions en Investissement Direct pour € 125m et en Fonds d'Investissement pour € 24m avec des rendements en ligne avec nos objectifs. En particulier, cession de certaines lignes cotées où notre stratégie, notamment d'influence directe, n'était pas envisageable.
Assemblée générale des actionnaires - 26 avril 2021
Principaux développements 2020 et perspectives
Perspectives
▪ Malgré les incertitudes sur l'horizon temporel de la normalisation suite à la crise Covid, nous restons optimistes pour 2021
▪ Le consensus des économistes prévoit un rebond relativement fort pour 2021, même si les économies européennes ne devraient pas retrouver le niveau de 2019
▪ Des prévisions précises restent irréalistes à ce stade, mais nous avons confiance :
▪ La forte résilience du portefeuille en 2020 nous laisse penser que nos sociétés auront les ressources pour saisir les opportunités de développement qui ne manqueront pas de se présenter dans un contexte de rebond
▪ L'activité d'investissement et de désinvestissement reste soutenue en ce début d'année : finalisation de projets d'investissement prometteurs en Investissement Direct (iMGP, Schaltbau) comme en Fonds d'Investissement (General Atlantic)
▪ Poursuite du programme de cession de lignes devenues moins adaptées à la nouvelle direction stratégique (SES, RTL, Kaufman &
Broad)
▪ Maintien de nos objectifs de rendement et donc de croissance de l'Actif Net à terme
5.
PRÉSENTATION DES RÉSULTATS FINANCIERS
CONSOLIDÉ
(en €M) | 2020 | 2019 | Variation |
Résultat net consolidé | 157 | 207 | -24% |
Capitaux propres | 1,702 | 1,575 | 8,1 % |
Actif net par titre (en €) | 84.7 | 78.4 | 8,1% |
Dividende (en €) | 1,6 | 1,48 | + 8% |
EXPLICATION DU RESULTAT:
RESULTAT IFRS
( €M)
Dividendes reçus 47
Gains en capital 121
Charges (11)
RESULTAT IFRS
157
AUGMENTATION DE VALEURS ✓ Investissements directs ✓ Fonds d'investissement
99 22 121
6. LECTURE DU RAPPORT DE GESTION SUR LES COMPTES ANNUELS ET CONSOLIDÉS 2020
Lecture est donnée par le Président de l'Assemblée générale
7. PRESENTATION DES RAPPORTS D'AUDIT DU RÉVISEUR D'ENTREPRISES AGRÉÉ
Une présentation des rapports d'audit est faite
Le réviseur d'entreprises agréé Deloitte a émis une certification des comptes sans réserves
8.
APPROBATION DES COMPTES ANNUELS DE L ´ EXERCICE 2020
SOCIAL (LUXGAAP)
(en €M) | 2020 | 2019 | Variation |
Résultat net consolidé | 67,67 | - 19 | n/a |
✓ Dividende Mehler
✓ PV S/ LPKF
✓ Variation de valeur sur Zooplus (reprise de corrections de valeurs de 2019)
9.
AFFECTATION DU RESULTAT DE L ´ EXERCICE 2020
Il est proposé un dividende brut de € 1,6, (€ 1,36 net), en augmentation de 8,1% et payable le 17 mai 2021
PROJET DE RESOLUTION
Le Conseil d'administration propose à l'Assemblée générale d'approuver l'affectation du résultat net de l'exercice 2020 conformément aux indications figurant dans le tableau ci-dessous:
Affectation du résultat | EUR (€) |
✓ Résultat net 2020 | 67.668.432,85 |
✓ Paiement d'un dividende de € 1,6 à 20.090.322 actions | - 32.144.515,20 |
(20.700.000 actions moins 609.678 actions auto-détenues) | |
✓ Bénéfice reporté | + 35.523.917,65 |
_____________ | |
Résultat 2020 non distribué | 0 |
.. |
10. APPROBATION DES COMPTES CONSOLIDÉS 2020
✓ Vote sur les comptes consolidés 2020
11. DÉCHARGE AUX ADMINISTRATEURS DE LA SOCIÉTÉ
POUR L'EXERCICE DE LEUR MANDAT 2020
✓ Le Président propose de donner décharge aux 13 administrateurs dans le cadre de leur mandat d'administrateurs de Luxempart.
12. COMPTE RENDU DES EMOLUMENTS ALLOUES AUX
ADMINISTRATEURS DÉLÉGUÉS 2020
✓ Il est rappelé que Jacquot Schwertzer était Administrateur-délégué jusqu'au 27.04.2020 et que Olaf Kordes et John Penning lui ont succédé.
✓ Emoluments alloués aux administrateurs-délégués en 2020 : € 1 185 245.
13. APPROBATION DU RAPPORT ANNUEL DE
RÉMUNERATION
✓ Le Président présente le rapport annuel de rémunération.
14./15./16./17./18. RENOUVELLEMENT D'ADMINISTRATEURS
NOM
DURÉE QUALITÉ
_______________________________________________
Olaf KORDES | 3 ans | Exécutif |
Michèle DETAILLE | 3 ans | Indépendante |
Madeleine JAHR | 3 ans | Indépendante |
LIDA SAS représenté | ||
par Grégoire Chertok | 3 ans | Indépendant |
Jacquot Schwertzer | 3 ans | Vice-Président |
19. FIXATION DE LA RÉMUNÉRATION DES MEMBRES DU
CONSEIL D'ADMINISTRATION
✓ Proposition d'augmenter la rémunération annuelle comme suit:
Avant | Proposition | Jetons de presence (inchangés) | |
Président | € 70 000 | € 75 000 | € 5 000 |
Vice-Président | € 60 000 | € 65 000 | € 2 500 |
Membre | € 45 000 | € 50 000 | € 2 500 |
✓ Justification :
• Augmentation de la charge de travail
• Réunions plus fréquentes
• Taille de la Société
• Benchmark de sociétés comparables
20. NOMINATION D'UN NOUVEAU REVISEUR D'ENTREPRISES POUR 2021
✓ Le Comité d'audit a procédé à un appel d'offre à l'issue duquel KPMG et EY ont été retenus
✓ Le Comité d'audit propose à l'Assemblée de choisir parmi ces 2 sociétés et formule une recommandation
✓ La recommandation est de choisir KPMG notamment en raison:
✓ Des bonnes références obtenues de clients existants
✓ De la communication sans faille avec les équipes de Luxempart
✓ De l'accès à de nombreux experts (taxes, ESG, évaluations…)
✓ De la dual partner approach (IFRS/ private equity)
✓ Du coût d'audit moins élevé
21. AUTORISATION D'ACQUERIR DES ACTIONS
PROPRES
✓ stock actuel d'actions propres: 609.678 (sur 20.700.000 actions émises)
✓ autorisation sur base de l'article 430-15 LSC et 430-23 LSC
✓ cadre:
→ maximum 30% du capital souscrit
→ prix minimum 1 € et prix maximum 100 €
→ validité 1 an
→ prix peut être payé en nature
22. DIVERS
✓ Rapport sur la gouvernance
✓ Rapport ESG
LUXEMPART société anonyme siège social 12 rue Léon Laval, L-3372 Leudelange
R.C.S. Luxembourg B 27846
Les actionnaires de la société LUXEMPART (la « Société ») sont invités à participer à : l'Assemblée générale ordinaire qui se tiendra
le lundi 26 avril 2021 à 11 heures (heure de Luxembourg) au siège social de la Société Conformément aux mesures sanitaires en place, il n'y aura pas de participation physique des actionnaires à l'Assemblée générale.
ORDRE DU JOUR
1. Listes de présence, quorum et adoption de l'ordre du jour
2. Désignation d'un ou plusieurs scrutateurs et d'un secrétaire pour la formation du bureau de l'assemblée.
3. Compte-rendu sur d'éventuels conflits d'intérêts
4. Présentation des principaux développements et risques rencontrés par la Société durant l'exercice 2020 et perspectives
5. Présentation des résultats financiers
6. Lecture du rapport de gestion sur les comptes annuels et consolidés pour l'exercice 2020
7. Présentation des rapports d'audit du réviseur d'entreprises agréé
8. Approbation des comptes annuels de l'exercice 2020
9. Affectation du résultat de l'exercice 2020
10. Approbation des comptes consolidés de l'exercice 2020
11. Décharge aux administrateurs de la Société pour l'exercice de leur mandat durant l'exercice
2020
12. Compte-rendu des émoluments alloués aux administrateurs délégués durant l'exercice 2020
13. Approbation du rapport annuel de rémunération des administrateurs et membres du comité de direction de la Société pour l'exercice 2020
14. Renouvellement du mandat de M. Olaf Kordes en tant qu'administrateur de la Société pour une durée de 3 ans
15. Renouvellement du mandat de Mme Michèle Detaille en tant qu'administrateur de la Société pour une durée de 3 ans
16. Renouvellement du mandat de Mme Madeleine Jahr en tant qu'administrateur de la Société pour une durée de 3 ans
17. Renouvellement du mandat de LIDA SAS (représentée par M. Grégoire Chertok) en tant qu'administrateur de la Société pour une durée de 3 ans
18. Renouvellement du mandat de M. Jacquot Schwertzer en tant qu'administrateur de la Société pour une durée de 3 ans
19. Fixation de la rémunération des membres du Conseil d'administration
20. Nomination du réviseur d'entreprises agréé de la Société pour l'exercice 2021 et fixation de sa rémunération
21. Autorisation de la Société d'acquérir des actions propres
22. Divers
DOCUMENTS MIS À DISPOSITION PAR LUXEMPART
Les propositions de résolutions émanant du Conseil d'administration, les documents destinés à être présentés lors de l'Assemblée générale ainsi que les formulaires d'avis de participation, de procuration et de vote à distance sont disponibles sur le site internet de LUXEMPARTwww.luxempart.lu.
N'hésitez pas à contacter Mme Betty Kizimalé-Grant pour de plus amples informations (fax : +352 425 462, courriel :agm@luxempart.lu, adresse postale : LUXEMPART, attn. Mme Betty Kizimalé-Grant, 12 rue Léon Laval, L-3372 Leudelange).
NOMBRE TOTAL D'ACTIONS ET DROITS DE VOTE
Le capital social souscrit et entièrement libéré de la Société s'élève à € 51.750.000. Il est représenté par 20.700.000 actions sans désignation de valeur nominale. Chaque action donne droit à une voix. Toutefois, par application de l'article 430-18 de la loi luxembourgeoise du 10 août 1915 sur les sociétés commerciales, le droit de vote des actions propres détenues par la Société est suspendu. La Société détient à la date de la présente convocation 609.678 actions propres.
Par ailleurs, la société Foyer Finance ayant renoncé à exercer 1.600.000 droits de vote, le nombre total des droits de vote s'élève à ce jour à 18.490.322.
PARTICIPATION À DISTANCE À L'ASSEMBLÉE
Obligation d'enregistrement préalable
Les droits d'un actionnaire de participer et d'exercer ses droits à l'Assemblée générale à distance sont déterminés en fonction des actions détenues par cet actionnaire le 14ème jour qui précède l'Assemblée générale, soit le 12 avril 2021 à minuit (heure de Luxembourg) (la « Date d'Enregistrement »). Une personne qui n'est pas actionnaire à la Date d'Enregistrement ne peut pas participer ni voter à l'Assemblée générale.
Tout actionnaire souhaitant participer à distance à l'Assemblée générale doit remettre à la Société un avis de participation dûment complété et signé à la Société auprès de Mme Betty Kizimalé-Grant (fax : +352 425 462, courriel :agm@luxempart.lu, adresse postale : LUXEMPART, attn. Mme Betty Kizimalé-Grant, 12 rue Léon Laval, L-3372 Leudelange). Les avis de participation doivent être parvenus à la Société au plus tard à la Date d'Enregistrement.
Les actionnaires ne peuvent utiliser que les formulaires d'avis de participation mis à disposition par la Société.
Tout actionnaire au porteur doit joindre à l'avis de participation ou, à défaut, envoyer à la Société une attestation délivrée par le dépositaire détenant les actions pour le compte de l'actionnaire, établissant sa qualité d'actionnaire et certifiant le nombre d'actions au porteur inscrites à son nom sur le registre au 12 avril 2021, soit par courrier postal adressé à la Société auprès de Mme Betty Kizimalé-Grant (fax : +352 425 462, courriel :agm@luxempart.lu, adresse postale : LUXEMPART, attn. Mme Betty Kizimalé-Grant, 12 rue Léon Laval, L-3372 Leudelange). Les attestations doivent être reçues par la Société au plus tard 5 jours avant l'Assemblée (soit au plus tard le 20 avril 2021 à minuit (heure de Luxembourg)).
Modalités de participation à distance à l'Assemblée
Considérant la situation sanitaire actuelle et en vertu de la loi du 23 septembre 2020 portant des mesures concernant la tenue de réunions dans les sociétés, telle que modifiée, il n'y aura pas de participation physique ou par visioconférence des actionnaires ou des mandataires d'actionnaires à l'Assemblée générale.
La Société impose à tout actionnaire souhaitant participer à l'Assemblée générale, d'exercer ses droits exclusivement soit par un vote à distance par écrit, soit par procuration donnée exclusivement à M. François Tesch, Président du Conseil d'administration de la Société (le « Président »).
Participation à distance en personne :
Tout actionnaire préalablement enregistré pourra exercer ses droits exclusivement à distance en remettant soit un formulaire de vote à distance soit un formulaire de procuration dûment complété et signé à la Société auprès de Mme Betty Kizimalé-Grant (fax : +352 425 462, courriel :agm@luxempart.lu, adresse postale : LUXEMPART, attn. Mme Betty Kizimalé-Grant, 12 rue Léon Laval, L-3372 Leudelange).
Les actionnaires ne peuvent utiliser que les formulaires de vote ou de procuration mis à disposition par la Société.
Tout actionnaire doit joindre au formulaire de vote une copie d'un document valide prouvant son identité comme une copie de carte d'identité ou de passeport en cours de validité.
Dans le cas d'actions détenues par une personne morale, la ou les personnes physiques représentant cette entité qui souhaitent exercer les droits de cette entité à l'Assemblée, doivent joindre au formulaire de vote ou formulaire de procuration une copie d'un document valide prouvant leur identité comme une copie de carte d'identité ou de passeport en cours de validité, ainsi la preuve de leur pouvoir de représentation au moyen d'un document en bonne et due forme comme une procuration générale ou spéciale ou un extrait de registre de commerce récent indiquant l'identité des représentants légaux de l'entité concernée.
Les formulaires de vote et les formulaires de procuration ainsi que les pièces devant y être annexées doivent être reçus par LUXEMPART au plus tard 5 jours avant la date de l'Assemblée générale, soit au plus tard le 20 avril 2021 à minuit (heure de Luxembourg).
Participation à distance via un mandataire autre que le Président :
Tout actionnaire préalablement enregistré, peut désigner par voie écrite toute personne (autre que le Président) comme son mandataire pour exercer les droits de l'actionnaire à distance. Un modèle de procuration est disponible sur le site internet de la Sociétéwww.luxempart.lu.
Dans cette hypothèse, le mandataire d'actionnaire pourra uniquement exercer les droits de l'actionnaire par un vote à distance écrit. Pour ce faire, le mandataire devra retourner à LUXEMPART un formulaire de vote à distance complété et signé accompagné de la preuve de son pouvoir de représentation comme une procuration, et d'une copie d'un document valide prouvant son identité ainsi que celle de l'actionnaire représenté comme une copie de carte d'identité ou de passeport en cours de validité.
Le mandataire ne peut utiliser que le formulaire de vote à distance mis à disposition par la Société.
Le formulaire de vote, la preuve du pouvoir de représentation et les pièces devant y être jointes doivent être reçus par la Société auprès de Mme Betty Kizimalé-Grant (fax : +352 425 462, courriel :agm@luxempart.lu, adresse postale : LUXEMPART, attn. Mme Betty Kizimalé-Grant, 12 rue Léon Laval, L-3372 Leudelange) au plus tard le 20 avril 2021 à minuit (heure de Luxembourg).
MODIFICATION DE L'ORDRE DU JOUR
Un ou plusieurs actionnaires disposant ensemble d'au moins 5% du capital social de LUXEMPART ont le droit d'inscrire des points à l'ordre du jour de l'Assemblée générale, et ont le droit de déposer des projets de résolution concernant des points inscrits ou à inscrire à l'ordre du jour de l'Assemblée générale.
Les demandes visées ci-dessus doit être formulées par écrit et être adressées à la Société auprès de Mme Betty Kizimalé-Grant (fax : +352 425 462, courriel :agm@luxempart.lu, adresse postale : LUXEMPART, attn. Mme Betty Kizimalé-Grant, 12 rue Léon Laval, L-3372 Leudelange) au plus tard le 22ème jour qui précède la date de l'Assemblée générale soit le 4 avril 2021 à minuit (heure de Luxembourg). Elles doivent être accompagnées d'une justification ou d'un projet de résolution à adopter lors de l'Assemblée générale et indiquer l'adresse postale ou électronique à laquelle LUXEMPART peut transmettre l'accusé de réception de ces demandes dans un délai de quarante-huit heures à compter de leur réception. LUXEMPART publiera alors un ordre du jour révisé au plus tard le 15ème jour qui précède la date de l'Assemblée générale.
QUESTIONS ECRITES AU CONSEIL D'ADMINISTRATION
Les actionnaires ont, dès la publication de cette convocation, la faculté de poser par écrit des questions concernant des points portés à l'ordre du jour, auxquelles il sera répondu au cours de l'Assemblée. Ces questions doivent être adressées par écrit à la Société auprès de Mme Betty Kizimalé-Grant (fax : +352 425 462, courriel :agm@luxempart.lu, adresse postale : LUXEMPART, attn. Mme Betty Kizimalé-Grant, 12 rue Léon Laval, L-3372 Leudelange) au plus tard 72 heures avant le jour de l'Assemblée, soit au plus tard le 22 avril 2021 à minuit (heure de Luxembourg).
Tout actionnaire ayant soumis une ou plusieurs questions selon les modalités susvisées devra soumettre la preuve de son identité ainsi que de sa qualité d'actionnaire à la Date d'Enregistrement au plus tard 72 heures avant le jour de l'Assemblée, soit au plus tard le 22 avril 2021 à minuit (heure de Luxembourg).
REUNION D'INFORMATION PAR VISIOCONFERENCE
Afin de permettre un dialogue informel entre les actionnaires et les membres de l'administration et de la direction de la Société, la Société permet en outre à tout actionnaire ayant remis dans les délais imposés un avis de participation complété et signé en bonne et due forme accompagné des pièces prouvant son identité et sa qualité d'actionnaire à la Date d'Enregistrement, de participer à une réunion d'information par visioconférence ou un autre moyen de télécommunication choisi par la Société le 26 avril 2021 à 11h30 (heure de Luxembourg). La réunion d'information aura donc lieu après l'Assemblée générale.
Au cas où un actionnaire a désigné un mandataire autre que le Président pour voter à distance en son nom, ce mandataire pourra également assister à cette réunion d'information selon les modalités susvisées à condition d'avoir remis à la Société dans les délais imposés l'avis de participation de l'actionnaire accompagné des pièces prouvant l'identité du mandataire et de l'actionnaire représenté ainsi que son pouvoir de représentation et le nombre d'actions détenues par l'actionnaire à la Date d'Enregistrement.
La Société veillera à ce que le plus grand nombre possible de membres du conseil d'administration et de la direction soient présents et communiquera les coordonnées de connexion en temps utile directement aux actionnaires participants et le cas échéant à tout mandataire d'actionnaire dûment habilité.
Fait à Leudelange, le 25 mars 2021.
Pour le Conseil d'administration de LUXEMPART
__________________________
François TESCH
Président du Conseil d'administration
LUXEMPART
Société anonyme Assemblée Générale Ordinaire
de LUXEMPART, société anonyme (la « Société »), 12 rue Léon Laval, 3372 Leudelange, Grand-
Duché de Luxembourg.
qui se tiendra le lundi 26 avril 2021 à 11 heures, heure de Luxembourg
ORDRE DU JOUR ET PROJETS DE RESOLUTIONS DE L'ASSEMBLÉE GÉNÉRALE
ORDRE DU JOUR
1. Listes de présence, quorum et adoption de l'ordre du jour
Il sera demandé à l'Assemblée générale d'approuver l'ordre du jour et de donner pouvoir au Président du Conseil d'administration de la Société de signer les listes de présence pour les actionnaires représentés ou votant à distance.
2. Désignation d'un ou plusieurs scrutateurs et d'un secrétaire pour la formation du bureau de l'assemblée
Selon l'article 32 des statuts « Le président de l'Assemblée Générale désigne le secrétaire, et l'Assemblée Générale désigne un ou plusieurs scrutateurs qui forment avec lui le bureau ».
Il est proposé à l'Assemblée générale de désigner M. Alain Huberty comme le scrutateur qui forme avec le secrétaire et le président le bureau de l'Assemblée générale.
3. Compte-rendu sur d'éventuels conflits d'intérêts
Un compte-rendu sera effectué sur les éventuels conflits d'intérêts au sein du Conseil d'Administration durant l'année 2020.
4. Présentation des principaux développements et risques rencontrés par la
Société durant l'exercice 2020 et perspectives
Une présentation sur les principaux développements et risques rencontrés par la Société pendant l'exercice social 2020 et les perspectives sera donnée en cours de séance.
5. Présentation des résultats financiers
Une présentation sur les résultats financiers pour l'exercice 2020 sera donnée en cours de séance.
6. Lecture du rapport de gestion sur les comptes annuels et consolidés pour l'exercice 2020
Lecture du rapport de gestion du Conseil d'administration pour l'année 2020 sera faite en cours de séance.
7. Présentation des rapports d'audit du réviseur d'entreprises agréé
Une présentation des rapports du réviseur d'entreprises sur les comptes annuels ainsi que les comptes consolidés sera donnée en cours de séance.
8. Approbation des comptes annuels de l'exercice 2020
Projet de résolution
Le Conseil d'Administration propose à l'Assemblée générale d'approuver les comptes annuels reproduits sous le point 7 de l'ordre du jour « Présentation des rapports d'audit du réviseur d'entreprises agréé ».
9. Affectation du résultat de l'exercice 2020
Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale d'approuver l'affectation du résultat net de l'exercice 2020 conformément aux indications figurant dans le tableau ci-dessous.
Affectation du résultat
EUR (€)
Résultat net 2020 67.668.432,85
Paiement d'un dividende de € 1,60/action à 20.090.322
actions (20.700.000 actions moins 609.678 actions auto-détenues)
- 32.144.515,20
Transfer au poste "Bénéfice reporté"
- 35.523.917,65 ______________
Résultat 2020 non distribué
0,00
10. Approbation des comptes consolidés de l'exercice 2020
Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale d'approuver les comptes consolidés pour l'exercice 2020 comme indiqués sous le point 7 de l'ordre du jour « Présentation des rapports d'audit du réviseur d'entreprises agréé ».
11. Décharge aux administrateurs de la société pour l'exercice de leur mandat durant l'exercice 2020
Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale de donner décharge aux administrateurs de la Société pour l'exercice de leur mandat durant l'exercice 2020.
12. Compte-rendu des émoluments alloués aux administrateur délégués durant l'exercice 2020
Il sera fait un compte-rendu des émoluments des administrateurs délégués pour l'année 2020.
13. Approbation du rapport annuel de rémunération des administrateurs et membres du comité de direction de la Société pour l'exercice 2020
Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale d'approuver le Rapport annuel de rémunération des administrateurs et des membres du comité de direction de la Société pour l'exercice 2020, lequel est inclus dans la Déclaration sur la gouvernance d'entreprise de la Société pour 2020.
14. Renouvellement du mandat de M. Olaf Kordes en tant qu'administrateur de la Société pour une durée de 3 ans
Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale de renouveler le mandat de M. Olaf
Kordes comme administrateur de la Société pour une durée de 3 ans se terminant à la date de l'assemblée générale annuelle qui se tiendra en 2024.
15. RenouvellementdumandatdeMmeMichèleDetailleentantqu'administrateur de la Société pour une durée de 3 ans Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale de renouveler le mandat de Mme Michèle
Detaille comme administrateur de la Société pour une durée de 3 ans se terminant à la date de l'assemblée générale annuelle qui se tiendra en 2024.
16. RenouvellementdumandatdeMmeMadeleineJahrentantqu'administrateur de la Société pour une durée de 3 ans Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale de renouveler le mandat de Mme
Madeleine Jahr comme administrateur de la Société pour une durée de 3 ans se terminant à la date de l'assemblée générale annuelle qui se tiendra en 2024.
17. Renouvellement du mandat de LIDA SAS (représentée par M. Grégoire
Chertok) en tant qu'administrateur de la Société pour une durée de 3 ans
Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale de renouveler le mandat de LIDA SAS
(représentée par M. Grégoire Chertok) comme administrateur de la Société pour une durée de 3 ans se terminant à la date de l'assemblée générale annuelle qui se tiendra en 2024.
18. RenouvellementdumandatdeM.
JacquotSchwertzerentantqu'administrateur de la Société pour une durée de 3 ans
Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale de renouveler le mandat de M. Jacquot
Schwertzer comme administrateur de la Société pour une durée de 3 ans se terminant à la date de l'assemblée générale annuelle qui se tiendra en 2024.
19. Fixation de la rémunération des membres du Conseil d'Administration
Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale que la rémunération des membres du
Conseil d'administration soit modifiée et désormais fixée comme suit :
Pour chaque assistance à une réunion du Conseil d'administration, les administrateurs recevront un jeton de présence de € 2.500,- (HT). Cette indemnité s'élève à € 5.000,- (HT) pour le Président.
Pour chaque assistance à une réunion du Comité de Nomination et de Rémunération ou du Comité d'Audit, Compliance et Risques, l'administrateur membre du comité considéré recevra un jeton de présence de € 2.500,- (HT). Cette indemnité s'élève à € 5.000,- (HT) pour le président du Comité concerné.
Chaque membre du Conseil d'administration aura droit à une indemnité fixe de € 50.000,- (HT) par an indépendamment du nombre de présences aux réunions. Cette indemnité est de € 65.000,- (HT) par an pour le Vice-Président et € 75.000,- (HT) par an pour le Président.
20. Nomination du réviseur d'entreprises agréé de la Société pour l'exercice 2021 et fixation de sa rémunération
Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale de nommer KPMG Luxembourg, Société coopérative comme réviseur d'entreprises agréé de la Société pour l'exercice 2021 comme recommandé par le Comité d'audit, de compliance et des risques de la Société (« Comité d'Audit ») le 19 mars 2021, et de fixer sa rémunération à un maximum de € 175.000 (HT).
Le Comité d'Audit a procédé à un appel d'offre à l'issue duquel KPMG Luxembourg, Société Coopérative et Ernst & Young S.A. ont été retenus et propose de choisir le réviseur d'entreprises agréé
parmi ces deux sociétés considérant ce qu'elles font parties des Big Four, les quatre plus grands groupes d'audit financier et de conseil au niveau mondial.
Le Comité d'Audit recommande de nommer KPMG Luxembourg, Société Coopérative notamment pour les raisons suivantes :
- Les bonnes références obtenues de clients existants ;
- Une communication sans faille avec les équipes de LUXEMPART ;
- L'implication d'un certain nombre d'experts dans l'audit (taxes, ESG, évaluation) ;
- Dual partner approach (IFRS/private equity); et
- Un coût d'audit compétitif.
21. Autorisation de la Société d'acquérir des actions propres
Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale de renouveler l'autorisation du Conseil d'administration d'acquérir les propres actions de la Société conformément aux conditions fixées par la loi du 10 août 1915, telle que modifiée, concernant les sociétés commerciales (« LSC ») relatives au rachat d'actions propres par une société anonyme conformément à l'article 430-15 LSC ou à en faire acquérir par d'autres sociétés du groupe telles que visées par l'article 430-23 LSC, et propose d'adopter les modalités de rachat suivantes :
• Le pair comptable des actions rachetées, y compris les actions que la Société aurait acquises antérieurement et qu'elle a toujours en portefeuille, ne pourra dépasser 30% du capital souscrit ;
• L'autorisation est valable à compter du 26 avril 2021 jusqu'à l'Assemblée générale ordinaire des actionnaires ayant lieu en 2022 ;
• Prix minimum par action : € 1,00 / Prix maximum par action : € 100,00 ; et
• Le prix peut être payé en nature (p.ex. : échange d'actions).
Il est en outre proposé de conférer tous pouvoirs sont conférés au Conseil d'administration, avec faculté de délégation au Comité de direction de la Société, en vue d'assurer l'exécution de la présente autorisation.
22. Divers
Projet de résolution
Le Conseil d'administration propose à l'Assemblée générale de prendre acte et d'approuver de la déclaration de gouvernance d'entreprise de la Société pour l'exercice social 2020.
CONSOLIDATED FINANCIAL STATEMENTS
at 31 December 2020
Contents
IFRS consolidated financial statements
Report of the Réviseur d'entreprises agréé
p. 5
Consolidated statement of profit or loss for the year ended 31 December 2020
p. 11
Consolidated statement of comprehensive income for the year ended 31 December 2020
p. 12
Consolidated statement of financial position at 31 December 2020
p. 13
Consolidated statement of cash flow for the year ended 31 December 2020
p. 15
Consolidated statement of changes in equity for the year ended 31 December 2019 and 2020
p. 16
Notes to the consolidated financial statements as at 31 December 2020
p. 17
Note 1 - General information
p. 17
Note 2 - Consolidation principles, valuation rules, and accounting standards
p. 17
Note 3 - Segment information
p. 26
Note 4 - Operating expenses
p. 30
Note 5 - Staff costs
p. 30
Note 6 - Dividends received
p. 32
Note 7 - Financial income and expenses
p. 32
Note 8 - Current and deferred tax expenses | p. 33 |
Note 9 - Intangible and tangible fixed assets | p. 34 |
Note 10 - Financial assets at fair value through | |
profit or loss | p. 35 |
Note 11 - Non-current loans and receivables | p. 37 |
Note 12 - Current loans and receivables | p. 38 |
Note 13 - Bank deposits, cash and cash equivalents | p. 38 |
Note 14 - Capital and share premium | p. 39 |
Note 15 - Reserves and own shares | p. 40 |
Note 16 - Dividends paid | p. 41 |
Note 17 - Bank borrowings | p. 41 |
Note 18 - Non-current provisions | p. 42 |
Note 19 - Current liabilities | p. 42 |
Note 20 - List of subsidiaries | p. 43 |
Note 21 - Main off-balance sheet rights | |
and commitments | p. 45 |
Note 22 - Directors' allowances and executive
management remuneration | p.45 |
Note 23 - Remuneration of the Réviseur | |
d'entreprises agréé | p. 46 |
Note 24 - Related parties | p. 46 |
Note 25 - Financial risks | p. 46 |
Note 26 - Significant event | p. 48 |
Note 27 - Events after the reporting period | p. 48 |
Deloitte Audit
Société à responsabilité limitée 20 Boulevard de Kockelscheuer L-1821 Luxembourg
Tel: +352 451 451www.deloitte.lu
To the Shareholders of
Luxempart S.A.
12, rue Léon Laval L-3372 Leudelange
REPORT OF THE "RÉVISEUR D'ENTREPRISES AGRÉÉ"
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Luxempart S.A. and its subsidiaries (the "Group"), which comprise the consolidated statement of financial position as at December 31, 2020, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects the consolidated financial position of the Group as at December 31, 2020, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.
Basis for Opinion
We conducted our audit in accordance with the EU Regulation N° 537/2014, the Law of July 23, 2016 on the audit profession (Law of July 23, 2016) and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the "Commission de Surveillance du Secteur Financier" (CSSF). Our responsibilities under the EU Regulation No 537/2014, the Law of July 23, 2016 and ISAs as adopted for Luxembourg by the CSSF are further described in the "Responsibilities of the "réviseur d'entreprises agréé" for the Audit of the Consolidated Financial Statements section of our report. We are also independent of the Group in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the consolidated financial statements, and have fulfilled our other ethical responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Société à responsabilité limitée au capital de 360.000 €
RCS Luxembourg B 67.895
Autorisation d'établissement 10022179
© Deloitte Audit, SARL
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of the audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matters identified | Auditor's Answer |
Valuation of unquoted investments and fair value changes impacting the consolidated statement of comprehensive income The Group owns a large number of unlisted securities representing 73% of the net asset. These investments are valued according to the fair value principle. The fair value is determined by management following the International Private Equity and Venture Capital Valuation (IPEV) guidelines and the IFRS norms as described in note 2. Owing to the illiquid nature of these investments, the assessment of fair valuation implies significant and complex judgements from management. Even minor changes to the assumptions used in these judgements specifically in the preliminary estimates of financial results and forecasts for the market multiple methods, illiquidity discounts, or others could have a significant impact on the valuation of the unlisted investment portfolio. This could therefore affect the return generated for the shareholders. | We tested internal control processes related to the fair valuation of unquoted investments and tested their implementation. Specifically, we examined the valuation governance structure as well as meeting minutes of the management's oversight of the valuation of unlisted investments. We assessed that management's valuation policies were in compliance with IFRS norms and the IPEV guidelines and that the valuation approach adopted by management was appropriate. With the assistance of our valuation experts, we formed an independent assessment of the valuation of a sample of unlisted investments. With respect of the assumptions used in the valuation models, we tested that the financials metrics and earnings multiples are in line with the latest available accounts of the company at the date of signature of our report. We assessed the reasonableness of the transactions multiples, earnings multiples and/or other comparable information used with available relevant external market sources. |
We verified the arithmetical accuracy of the models prepared by management.
We identified and analysed independently the explanation provided by management for any fair value changes compared to the prior exercise, and where applicable, the differences between the selling price of investments realised during the financial year and the prior year fair value: This was to further assess the reasonableness of the current year valuation models and methodology adopted by management.
We ensured the impact of fair value movements are correctly reflected in the consolidated statement of comprehensive income.
Other information
The Board of Directors is responsible for the other information. The other information comprises the information stated in the management report and the Corporate Governance Statement but does not include the consolidated financial statements and our report of the "réviseur d'entreprises agréé" thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report this fact. We have nothing to report in this regard.
Responsibilities of the Board of Directors and Those Charged with Governance for the Consolidated Financial Statements
The Board of Directors is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with IFRSs as adopted by the European Union, and for such internal control as the Board of
Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Responsibilities of the "réviseur d'entreprises agréé" for the Audit of the Consolidated Financial Statements
The objectives of our audit are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report of the "réviseur d'entreprises agréé" that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the EU Regulation N° 537/2014, the Law of July 23, 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the EU Regulation N° 537/2014, the Law of July 23, 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report of the "réviseur d'entreprises agréé" to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report of the "réviseur d'entreprises agréé". However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities and business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our report unless law or regulation precludes public disclosure about the matter.
Report on Other Legal and Regulatory Requirements
We have been appointed as "réviseur d'entreprises agréé" by the General Meeting of the Shareholders on April 27, 2020 and the duration of our uninterrupted engagement, including previous renewals and reappointments, is 19 years.
The consolidated management report is consistent with the consolidated financial statements and has been prepared in accordance with applicable legal requirements.
The Corporate Governance Statement, as published on the Company's [http://www.luxempart.lu/], is the responsibility of the Board of Directors. The information required by Article 68ter paragraph (1) letters c) and d) of the law of December 19, 2002 on the commercial and companies register and on the accounting records and annual accounts of undertakings, as amended, is consistent, at the date of this report, with the consolidated financial statements and has been prepared in accordance with applicable legal requirements.
We confirm that the audit opinion is consistent with the additional report to the audit committee or equivalent.
We confirm that the prohibited non-audit services referred to in the EU Regulation N° 537/2014 were not provided and that we remained independent of the Group in conducting the audit.
For Deloitte Audit, Cabinet de Révision Agréé
Christian Van Dartel, Réviseur d'Entreprises Agréé
Partner
March 25, 2021
10
Consolidated statement of profit or loss
for the year ended 31 December 2020
in thousands of € | Notes | 31/12/2020 | 31/12/2019 |
Investments activities | |||
Dividends received | 6 | 47,364 | 19,758 |
Net gains / (losses) on financial assets | 10 | 120,490 | 196,094 |
Profit on investments activities | 167,854 | 215,852 | |
Ordinary activities | |||
Services / recovery of services | 2,433 | 3,068 | |
Staff costs | 5 | -6,311 | -6,118 |
Operating expenses | 4 | -6,362 | -5,187 |
Depreciation and amortisation of non-current assets | 9 | -923 | -101 |
Depreciation and amortisation of current assets | -544 | - | |
Profit on ordinary activities | -11,707 | -8,338 | |
Operating income | 156,146 | 207,514 | |
Financial income | 7 | 1,207 | 713 |
Financial expenses | 7 | -635 | -752 |
Profit before tax | 156,718 | 207,475 | |
Tax current | 8 | -24 | -25 |
Profit for the year | 156,695 | 207,449 | |
Attributable to the owners of the Company | 156,695 | 207,449 | |
Earnings per share attributable to the owners of the Company | |||
Weighted average number of shares | 15 | 20,084,332 | 20,075,026 |
Earnings per share - | |||
attributable to the owners of the Company (in €) | 7.80 | 10.33 | |
The accompanying notes are an integral part of these consolidated financial statements. |
Consolidated statement of comprehensive income
for the year ended 31 December 2020
in thousands of € | Notes | 31/12/2020 | 31/12/2019 |
Consolidated profit for the year | 156,695 | 207,449 | |
Items that could be reclassified subsequently to profit or loss : | - | - | |
Total comprehensive income | 156,695 | 207,449 | |
Attributable to the owners of the Company | 156,695 | 207,449 | |
Comprehensive income attributable to the owners of the Company | |||
Weighted average number of shares | 15 | 20,084,332 | 20,075,026 |
Comprehensive income per share attributable | |||
to the owners of the Company (in €) | 7.80 | 10.33 | |
The accompanying notes are an integral part of these consolidated financial statements. |
at 31 December 2020
Assets
in thousands of € | Notes | 31/12/2020 | 31/12/2019 |
Non-current assets | |||
Intangible and tangible fixed assets | 9 | 381 | 459 |
Financial assets at fair value through profit and loss | 2,3,10 | 1,599,666 | 1,458,625 |
Loans and receivables | 11 | 62 | 844 |
Total non-current assets | 1,600,109 | 1,459,929 | |
Current assets | |||
Loans and receivables | 12 | 5,212 | 2,129 |
Bank deposits | 13 | 85,000 | 80,000 |
Cash and cash equivalents | 13 | 38,978 | 51,366 |
Total current assets | 129,190 | 133,495 | |
Total assets | 1,729,299 | 1,593,423 | |
The accompanying notes are an integral part of these consolidated financial statements. |
at 31 December 2020
Equity and liabilities
in thousands of € | Notes | 31/12/2020 | 31/12/2019 |
Equity attributable to the owners of the Company | |||
Capital and share premium | 14 | 66,860 | 66,860 |
Reserves | 15 | 1,478,509 | 1,300,371 |
Profit for the year attributable to the owners of the Company | 156,695 | 207,449 | |
Total equity attributable to the owners of the Company | 1,702,064 | 1,574,680 | |
Total equity | 1,702,064 | 1,574,680 | |
Non-current liabilities | |||
Non-current provisions | 18 | 3,308 | 3,342 |
Bank borrowing | 17 | 19,169 | 10,179 |
Total non-current liabilities | 22,477 | 13,521 | |
Current liabilities | |||
Trade and other payables | 19 | 4,758 | 5,222 |
Total current liabilities | 4,758 | 5,222 | |
Total liabilities | 27,235 | 18,743 | |
Total equity and liabilities | 1,729,299 | 1,593,423 | |
The accompanying notes are an integral part of these consolidated financial statements. |
Consolidated statement of cash flow
for the year ended 31 December 2020
in thousands of € | Notes | 31/12/2020 | 31/12/2019 |
Profit for the year | 156,695 | 207,449 | |
Adjustments for : | |||
Depreciation and amortisation of non-current assets | 124 | 31 | |
Net gains / (losses) on financial assets | 10 | -120,490 | -196,094 |
36,328 | 11,386 | ||
Acquisition of financial assets | 10 | -169,154 | -197,044 |
Disposal of financial assets | 10 | 148,603 | 160,522 |
Net change in loans and receivables | -2,301 | 1,681 | |
Net change in borrowings and debts | -497 | 2,613 | |
Bank borrowing | 17 | 8,990 | -20,216 |
Other changes | - | 13 | |
Net cash flows from operating activities | 21,969 | -41,045 | |
Including : | |||
Taxes paid | -27 | -22 | |
Interest paid | -344 | -453 | |
Interest received | 13 | 134 | |
Acquisitions / disposals of tangible and intangible assets | 9 | -46 | -140 |
Net cash flows from investing activities | -46 | -140 | |
Transfer from / (to) deposits accounts | 13 | -5,000 | 15,000 |
Disposals / acquisitions of own shares | 15 | 414 | -15 |
Dividends paid | 16 | -29,725 | -28,248 |
Net cash flows from financing activities | -34,311 | -13,263 | |
Net increase/ (decrease) in cash | -12,388 | -54,447 | |
Cash at the beginning of the year | 13 | 51,366 | 105,812 |
Cash at the end of the year | 13 | 38,978 | 51,366 |
Net increase / (decrease) in cash | -12,388 | -54,446 | |
The accompanying notes are an integral part of these consolidated financial statements. |
Consolidated statement of changes in equity
for the year ended 31 December 2019 and 2020
in thousands of €
Notes | Capital and | Own | Legal | Other | Profit for | Attributable |
share | shares | reserve | reserves | the period | to owners | |
premium | of the | |||||
Company |
Equity at 31/12/2018 | 74,894 | -104,982 | 5,989 | 1,403,571 | 16,009 | 1,395,481 | |
Dividends paid by the Company | 16 | - | - | - | -28,248 | - | -28,248 |
Allocation of profit | - | - | - | 16,009 | -16,009 | - | |
Capital reduction | 14, 15 | -8,034 | 87,779 | - | -79,745 | - | - |
Operations on own shares | 15 | - | -15 | - | 13 | - | -2 |
Comprehensive income for the year | - | - | - | - | 207,449 | 207,449 | |
Equity at 31/12/2019 | 66,860 | -17,218 | 5,989 | 1,311,600 | 207,449 | 1,574,680 | |
Dividends paid by the Company | 16 | - | - | - | -29,725 | - | -29,725 |
Allocation of profit | - | - | - | 207,449 | -207,449 | - | |
Legal reserve reduction | - | - | -814 | 814 | - | - | |
Operations on own shares | 15 | - | 380 | - | 34 | - | 414 |
Comprehensive income for the year | - | - | - | - | 156,695 | 156,695 | |
Equity at 31/12/2020 | 66,860 | -16,838 | 5,175 | 1,490,172 | 156,695 | 1,702,064 |
The accompanying notes are an integral part of these consolidated financial statements.
Notes to the consolidated financial statements
at 31 December 2020
Note 1 - General information
Luxempart S.A. ("the Company" or "Luxempart") is an investment company whose registered office is located at 12, rue Léon Laval, L-3372 in Leudelange. The Company was founded on 25 April 1988, under the name BIL Participations. The Annual General Meeting held on 15 September 1992 decided to change the Company's name to Luxempart S.A. The consolidated financial statements for the financial years ending on 31 December 2019 and 31 December 2020 incorporate the financial statements of the Company and its subsidiaries ("the Group") and the Group's share in associates. The Company is listed on the Luxembourg Stock Exchange and registered on the trade register under no. B27846.
Luxempart is primarily active in Luxembourg, Belgium, France, Italy and Germany; it actively manages a portfolio of listed and non-listed companies.
On 24 March 2021, the Board of Directors approved the consolidated financial statements as at 31 December 2020. The consolidated financial statements will be submitted for approval and publication authorisation during the Annual General Meeting to be held on 26 April 2021.
Note 2 - Consolidation principles, valuation rules, and accounting standards
Declaration of conformity
The consolidated annual financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
Framework for preparation and presentation of financial statements
The consolidated financial statements are presented in thousands of euros (€). The functional currency is the euro (€).
The consolidated financial statements are prepared based on the historical cost, with the exception of financial assets at fair value through profit of loss and financial assets held for trading, which are measured at fair value.
The valuation principles, methods and techniques are applied consistently within the Group.
The consolidated financial statements have been prepared for the accounting periods ended 31 December 2019 and 31 December 2020 are presented before allocation of the Company's profit. The allocation of profit for the year 2020 will be proposed at the Annual General Meeting on 26 April 2021.
Significant management judgments
Qualification as an « investment entity »
Luxempart's management has made significant judgments when determining that Luxempart qualifies as an investment entity. Luxempart has the following characteristics of an investment entity:
• It has more than one investment;
• It has more than one investor;
• Being listed, Luxempart has investors that are not related parties;
• It has ownership in form of equity or similar interests, mostly shares in the portfolio companies.
Luxempart's purposes is to invest its capital solely for returns from capital appreciation and investment income. To meet this objective, Luxempart has built a strategy on two pillars: the direct investments and the investment funds. The direct investments are made with a medium to long-term perspective to ensure to our portfolio companies to enjoy sufficient time to implement their strategy, execute their business plan and develop their potential. Each of our pillars has an exit strategy designed by the Board of directors, who is composed by a majority of independent members and who will take the decision in the best interest of Luxempart.
Fair valuation
In preparing the financial statements, the application of the accounting principles and methods described hereafter requires Luxempart's management to make assumptions and estimates that may have an impact on the amounts recognised in the statement of profit or loss, on the valuation of assets and liabilities on the statement of financial position, and on the information presented in the accompanying notes. Management makes these estimates and assumptions based on the information available on the date on which the consolidated financial statements are drawn up and may be required to exercise its judgment. By nature, valuations based on these estimates are subject to a number of risks and uncertainties before their future realisation. Consequently, the actual results of the operations in question may differ from these estimates and therefore have a material impact on the consolidated financial statements.
Consolidation principles
Qualifying as an investment entity, Luxempart does not consolidate its subsidiaries and does not apply IFRS 3 when it acquires control over another entity.
There is one exception to this treatment for subsidiaries providing services that relate to Luxempart's investment activities. These subsidiaries are fully consolidated.
Investments in subsidiaries not providing services that relate to Luxempart's investment activities and investments where Luxempart has significant influence or joint control are classified as Financial assets at fair value through profit and loss, in accordance with IFRS 9.
A list of non-consolidated subsidiaries is set out in note 20.
Subsidiaries that provides investment-related services (fully consolidated)
A subsidiary providing services that relate to investment activities means a company over which the Company has control. The Company has control when it:
• has power over the entity,
• is exposed, or has rights, to variable returns from its involvement with the entity,
• has the ability to use its power over the entity to affect the amount of its returns.
These companies are fully consolidated as from the date the Group obtains the control and ceases when this control is lost.
Non-controlling interests are presented in equity on the consolidated statement of financial position, separately from "Equity attributable to the owners of the Company", and classified under "Non-controlling interests". Non-controlling interests in the Group's profit are also indicated separately on the consolidated statement of profit or loss and classified under "Non-controlling interests".
Expenses, income, assets, and liabilities of subsidiaries are fully incorporated into the consolidated financial statements. Transactions between companies of the Group, intercompany accounts, and unrealised profits on intragroup transactions are fully eliminated.
A list of the Group's subsidiaries is presented in note 20.
Transactions in foreign currencies
Transactions carried out in foreign currencies are converted into the functional currency at the exchange rate in force as at the transaction date. At the end of each reporting period, the monetary items in foreign currencies are converted at the rate of the last day of the financial year. Losses or profits from the realisation or conversion of monetary elements denominated in foreign currencies are recognised in the statement of profit or loss.
The following exchange rates were used for conversion of the consolidated financial statements. As at 31 December 2020, one euro is equal to:
US Dollar | 1.2352 USD |
Pound Sterling | 0.8923 GBP |
Swiss Franc | 1.0816 CHF |
Danish Crown | 7.4435 DKK |
Intangible fixed assets with a finite useful life |
Intangible fixed assets with a finite useful life are valued at cost less accumulated amortisation and accumulated impairment losses. Amortisation is applied according to the straight-line method based on an estimate of the fixed asset's useful life and its possible residual value.
Intangible fixed assets are not subject to revaluations. The useful life is as follows:
Acquired software
3 years
Tangible fixed assets
Tangible fixed assets are measured at cost (including transaction costs) less accumulated amortisation and accumulated impairment losses. Depreciation is applied according to the straight-line method based on an estimate of the useful life of the said fixed asset. Costs related to maintenance are recognised in the statement of profit or loss.
Tangible fixed assets are not subject to revaluations.
IFRS consolidated financial statements at 31 December 2020 Luxempart S.A. 20 | |
The estimated useful lives are as follows: | |
Facilities and transport equipment | 3 - 5 years |
Other tangible fixed assets, furnishings | 10 years |
Principle of impairment of tangible and intangible fixed assets
At the end of each reporting period, the Group reviews the carrying amount of tangible and intangible fixed assets in order to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. The recoverable amount is the higher value between the asset's fair value less costs of sell and its value in use. The value in use is the discounted value of estimated future cash flows expected from continued use of the asset.
Financial assets
Financial assets at fair value through profit or loss
Financial assets at fair value through profit and loss ("AFVPL") are initially measured at their acquisition cost.
They are stated at fair value and measured at the end of each reporting period. Unrealised capital gains and losses are recognised in the consolidated statement of profit or loss.
In the event of sale of an AFVPL, the difference between the net proceeds from the sale and the carrying amount is recognised in the consolidated statement of profit or loss under "Net gains/(losses) on financial assets". The transaction is recognised as at the settlement date.
Financial assets held for trading
Financial assets held for trading classified in current assets are assets acquired mainly with a view to be sold in the short term.
They are stated at fair value and measured at the end of each reporting period. Changes in fair value are recognised in the consolidated statement of profit or loss under "Net gains/(losses) on financial assets".
In the event of disposal of a financial asset held for trading, the difference between the net proceeds from the sale and the carrying amount is recognised in the consolidated statement of profit or loss under "Net gains/(losses) on financial assets". The transaction is recognised as at the settlement date.
Fair value of financial assets
Fair value measurements
IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, on the principal or most advantageous market, at the measurement date.
Financial assets are measured at their fair value at the end of each reporting period.
Listed shares are measured based on their market price on the closing date.
Non-listed financial assets are measured based on valuation methods in line with the requirements of the International Private Equity and Venture Capital Valuation (IPEV). During the measurement of the fair value of the financial assets in non-listed companies, Luxempart adopts a multi-criteria approach and applies one or several of the methods described in the table hereafter.
Discounts may be applied to the values obtained by using each of these methods (discounts for illiquidity, for small company, etc.).
Assets categorised as level 3 assets are valued by Luxempart's investment managers on the basis of information received from the portfolio companies' management or by external evaluators. After being reviewed in detail by the business controller, these valuations are submitted to the Senior Investment Officers for approval. Finally, they are submitted to the Audit, Compliance and Risks Committee, which conducts a detailed analysis of the methods and assumptions used. They are ultimately approved by the Board of Directors when it approves the financial statements.
Fair value hierarchy
The Group uses a fair value hierarchy that reflects the significance of the data allowing valuations to be established.
• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2: Data other than quoted market prices included within level 1 that are observable for the asset or liability, either directly (for example, prices) or indirectly (for example, elements derived from prices);
• Level 3: Data about the asset or liability not based directly on observable market data.
When a level 1 asset is no longer listed, it is reclassified as a level 3 asset as soon as it is delisted. Where data on a level 2 asset is no longer observable on a market, that asset is reclassified as a level 3 asset at the period-end.
Level 3 fair value valuation techniques used
The following table provides information on the methods used according to IFRS 13 to determine the fair value of financial assets in private equity, as well as the valuation techniques and inputs used.
Valuation techniques | Use of the technique | Significant unobservable inputs | Relationship of unobservable inputs to fair value | ||
Recent transaction multiple | Whenever a recent transaction has been completed involving an identical or similar asset | Discount for illiquidity and/or minority between 15% and 30% | The higher the discount, the lower the fair value | ||
Market multiple | In the absence of recent transactions involving an identical or similar asset or in complement to another valuation technical | Discount for illiquidity and/or minority between 5% and 40% | The higher the discount, the lower the fair value | ||
Discounted cash flows | In the absence of a comparable listed company or in addition to the market multiple method | The weighted average cost of capital is between 11% and 12% and the long-term revenue growth rate between 1% and 2% | The higher the growth rate, the higher the fair value | The higher the cost of capital, the lower the fair value | The higher the discounted cash flows, the higher the fair value |
Revalued net asset | For private equity funds and holding companies as well as mature companies with assets recognised at fair value | Small cap discount and/or lack of market depth between 0% and 10% | The higher the discount, the lower the fair value |
Loans and receivables
Loans and receivables are assets not listed on the stock exchange and repayable with fixed maturity. They originate when the Group either makes funds, assets, or services available. They are part of current assets insofar as their maturity does not exceed twelve months after the end of the reporting period (short term). Otherwise, they are part of non-current assets (long-term).
Loans and receivables are measured at amortised cost according to the effective interest rate method. In the event of a significant loss in value, loans and receivables are impaired through the consolidated statement of profit or loss.
Cash and cash equivalents, Bank deposits
Cash and cash equivalents include liquidities, sight deposits, and short-term deposits of less than three months, as well as highly liquid, easily convertible investments.
Cash deposits having a term above three months are presented under "Bank deposits" in the consolidated statement of financial position.
Capital
Issued shares are considered to be representative of the share capital. Issued equity is recognised at the proceed net of direct issue costs.
When a company of the Group acquires shares of the parent company, the price paid and the related incurred costs is recognised and deducted directly in equity at the moment when these shares are cancelled or transferred. When shares are transferred, the transfer price net of expenses incurred during this transaction and net of taxes is added to the equity.
Bank borrowings
Bank borrowings bearing interest are recognised at the amount of the cash obtained after deducting any direct expenses. Transaction expenses (if they are material) are amortised over the remaining life of the debt.
Current and deferred taxes
Income taxes are calculated according to the legal requirements. Advances paid are recognised as receivable and income tax expense (corporate income tax and municipal business tax) is estimated and recognised as provision.
Deferred taxes originate when a temporary difference appears between the taxable base of an asset or liability and the value at which it appears on the consolidated statement of financial position. Deferred tax is calculated by applying the tax rate as well as the provisions of the law in force at the time of the calculation.
Deferred tax assets are recognised for all deductible temporary differences (on tax loss carry forwards or other temporary differences) to the extent that it is probable that taxable profits will be available, against which those deductible temporary differences can be utilised, or when compensation is possible with existing deferred tax liabilities.
Provisions and other liabilities
Provisions are recognised once the Group has an actual obligation (legal or implied) resulting from past events that will probably generate an outflow of resources representative of economic benefits at an amount that can be reasonably estimated.
Other liabilities are recognised at their nominal value.
Segment information
Luxempart is active on two segments:
• The "direct investments" that consists in taking direct participations in companies in the target geographical regions, which primarily consist of the Belux Region, France, Germany and Italy.
• The "investment funds" that consists in the acquisition of shares in investment funds mainly active in private equity and venture capital.
A geographical segmentation is considered not relevant for Luxempart.
Income from ordinary activities
Luxempart and some of its subsidiaries provide services to other entities within the Group. These services are defined in a service agreement between the entities involved and are recognised based on the degree of progress.
Dividends received
The Group recognises dividends when they are received or when the right to receive payment is established. They result from the distribution of profits to holders of equity instruments in proportion to the rights that they hold in a category of securities making up the capital.
Consolidated statement of cash flow
Luxempart is a company whose purpose is the acquisition of shareholdings. The cash flows associated with this activity are classified as net cash flows from operating activities. Dividends received are included in the net income.
Net cash flows from investing activities are composed of flows related to tangible and intangible assets.
Net cash flows from financing activities are composed of transactions on equity (for example, dividends paid to the shareholders, transactions on own shares, capital increase and decrease...) and flows from and to bank deposits.
Changes in accounting methods
The new IAS/IFRS and their interpretations listed below, which entered into force in 2020, had no impact on the Group's financial statements.
•
•
Amendements to References to the Conceptual Framework in IFRS Standards Amendments to IAS 1 and IAS 8: Definition of Material
•
•
Amendments to IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform Amendments to IFRS3 Businsess combinations
•
Amendments to IFRS 16 Leases Covid-19 Related Rent Concessions
Some standards, interpretations and amendments to standards published by the International Accounting Standards Board (IASB) but had not yet been applied within the European Union as at 31 December 2020. The Group has opted not to apply them early.
These standards are:
•
Amendments to IFRS 4 Insurance Contracts - deferral of IFRS 9
•
•
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest Rate Benchmark Reform, Phase II IFRS 17 Insurance Contracts; including Amendments to IFRS 17
•
•
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current Amendments to
o IFRS 13 Business Combinations;
o IAS 16 Property, Plant and Equipment;
o IAS 37 Provisions, Contingent Liabilities and Contingent Assets
o Annual Improvements 2018-2020
• policies
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting
•
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting
Estimates
•
Proposed amendments to IFRS 16 Leases: Covid-19-Related Rent Concessions beyond 20 June 2021
The Group doesn't anticipate a significant impact on the financial statements.
Note 3 - Segment information
The following table provides details of segmentation information. The Group considers that a geographical segmentation is not relevant.
Prior period comparable figures have been restated to reflect the new segmentation.
(*) All assets, liabilities, income and expenses that are not directly allocated to a segment are presented in "Others".
31 December 2020
Direct | ||||
in thousands of € | investments | 31/12/2020 | ||
Investments activities | ||||
Dividends received | 47,308 | 55 | - | 47,364 |
Net gains / (losses) on financial assets | 101,779 | 21,200 | -2,489 | 120,490 |
Profit on investments activities | 149,088 | 21,255 | -2,489 | 167,854 |
Ordinary activities | ||||
Services / recovery of services | - | - | 2,433 | 2,433 |
Staff costs | - | - | -6,311 | -6,311 |
Operating expenses | - | - | -6,362 | -6,362 |
Depreciation and amortisation of non-current assets | - | - | -923 | -923 |
Depreciation and amortisation of current assets | - | - | -544 | -544 |
Profit on ordinary activities | - | - | -11,707 | -11,707 |
Operating income | 149,088 | 21,255 | -14,196 | 156,146 |
Financial income | - | - | 1,207 | 1,207 |
Financial expenses | - | - | -635 | -635 |
Profit before tax | 149,088 | 21,255 | -13,625 | 156,718 |
Tax current | - | - | -24 | -24 |
Profit for the year | 149,088 | 21,255 | -13,648 | 156,695 |
Investment funds
Others (*)
in thousands of € Non-current assets
Intangible and tangible fixed assets
Financial assets at fair value through profit and loss
Loans and receivables
Total non-current assets
Current assets
Loans and receivables Bank deposits
Cash and cash equivalents
Total current assets
Direct investments
- 1,187,615
62 1,187,677
- - - -
Investment funds
- 377,668
- 377,668
- - - -
Others
(*)
31/12/2020
381 34,383
381 1,599,666
-
62
34,764 1,600,109
5,212 5,212
85,000 85,000
38,978 38,978
129,190 129,190
Total assets
1,187,677
377,668
163,954
1,729,299
in thousands of € Total equity Non-current liabilities
Non-current provisions
Bank borrowing
Total non-current liabilities Current liabilities
Trade and other payables Total current liabilities
Total liabilities
Direct investments
-
- 19,169
19,169
- -
19,169
Total equity and liabilities
19,169
InvestmentfundsOthers (*)
- 1,702,064
- -
31/12/2020 1,702,064
3,308 3,308
- 19,169
-
- - - -
1,710,130
3,308 22,477
4,758 4,758
4,758 4,758
8,066 27,235
1,729,299
31 December 2019
Direct | ||||
in thousands of € | investments | 31/12/2019 | ||
Investments activities | ||||
Dividends received | 19,669 | 90 | - | 19,758 |
Net gains / (losses) on financial assets | 148,530 | 47,258 | 306 | 196,094 |
Profit on investments activities | 168,199 | 47,348 | 306 | 215,852 |
Ordinary activities | ||||
Services / recovery of services | - | - | 3,068 | 3,068 |
Staff costs | - | - | -6,118 | -6,118 |
Operating expenses | - | - | -5,187 | -5,187 |
Depreciation and amortisation of non-current assets | - | - | -101 | -101 |
Profit on ordinary activities | - | - | -8,338 | -8,338 |
Operating income | 168,199 | 47,348 | -8,032 | 207,514 |
Financial income | - | - | 713 | 713 |
Financial expenses | - | - | -752 | -752 |
Profit before tax | 168,199 | 47,348 | -8,071 | 207,475 |
Tax current | - | - | -25 | -25 |
Profit for the year | 168,199 | 47,348 | -8,097 | 207,449 |
Investment funds
Others (*)
in thousands of € | ||
Non-current assets | ||
Intangible and tangible fixed assets | - | - |
Financial assets at fair value through profit and loss | 1,091,316 | 340,182 |
Loans and receivables | 844 | - |
Total non-current assets | 1,092,160 | 340,182 |
Current assets | ||
Loans and receivables | - | - |
Bank deposits | - | - |
Cash and cash equivalents | - | - |
Total current assets | - | - |
Total assets | 1,092,160 | 340,182 |
Direct | Investment | |
in thousands of € | investments | funds |
Total equity | - | |
Non-current liabilities | ||
Non-current provisions | - | |
Bank borrowing | 10,179 | |
Total non-current liabilities | 10,179 | |
Current liabilities | ||
Trade and other payables | - | |
Total current liabilities | - | |
Total liabilities | 10,179 | |
Total equity and liabilities | 10,179 |
Direct investments
Investment funds
Others (*) | 31/12/2019 | |
459 | 459 | |
27,128 | 1,458,625 | |
- | 844 | |
27,587 | 1,459,929 | |
2,129 | 2,129 | |
80,000 | 80,000 | |
51,366 | 51,366 | |
133,495 | 133,495 | |
161,081 | 1,593,423 | |
Others (*) | 31/12/2019 | |
- | 1,574,680 | 1,574,680 |
- | 3,342 | 3,342 |
- | - | 10,179 |
- | 3,342 | 13,521 |
- | 5,222 | 5,222 |
- | 5,222 | 5,222 |
- | 8,564 | 18,743 |
- | 1,583,244 | 1,593,423 |
Note 4 - Operating expenses
The following table provides details of operating expenses:
in thousands of € | 2020 | 2019 |
External advisors and other similar fees | 3,151 | 2,173 |
Taxes other than income tax | 583 | 713 |
Directors allowances | 808 | 728 |
Rental expenses | 471 | 471 |
Insurance premiums | 88 | 105 |
Administrative expenses and other operating expenses | 1 261 | 997 |
Total | 6,362 | 5,187 |
2019 | ||
5,646 | ||
260 | ||
212 | ||
6,118 |
The following table provides details of staff costs and benefits:
All expenses are recognised in the consolidated statement of profit or loss at the time of the transaction.
Note 5 - Staff costs
in thousands of €
2020
Remuneration, wages and bonuses 5,793
Social security contributions 308
Supplementary pension plan 210
Total
6,311
The Group has opted for a defined-contribution pension plan and pays annual contributions to a separate entity (Foyer Vie). The Group will have no legal or implied obligation to pay additional contributions if said entity does not have enough assets to cover the benefits corresponding to the services rendered by staff members during the current and prior periods.
Premiums are paid annually and recognised directly in the consolidated statement of profit or loss.
The Group offers defined-contribution pension plans to its employees. Luxempart pays contributions corresponding to a percentage of the payroll expenses into the retirement scheme in order to fund these benefits. The only obligation with regard to the retirement scheme involves paying these contributions which are recognised in staff costs.
The following table indicates the average number of employees over the year:
Category | 2020 | 2019 |
Managers | 6 | 6 |
Support staff | 13 | 10 |
Total | 19 | 16 |
Stock option plan for management |
In 2009, Luxempart established a stock option plan for members of management. For financial year 2020, the Board of Directors granted 99,000 Luxempart options with an exercise price of € 47.73 per share and 120,100 options with an exercise price of € 46.00 per share.
The fair value of the options is calculated according to a matrix using a Monte Carlo analysis. No expense has been recognised in the consolidated statement of profit or loss for 2020.
The table below summarises the movements of the year:
Total
Number of options issued as at 01/01/2020 | 313,728 | |||
Options exercised in 2020 | -13,750 | |||
Options issued in 2020 | 219,100 | |||
Number of options issued as at 31/12/2020 | 519,078 | |||
The table below provides the plan's characteristics: | ||||
Share price | ||||
Exercise | when | |||
Tranche | Year | price | Exercise period | allotted |
Tranche 1 | 2009 | 21.20 | May 2012 - May 2019 | 22.00 |
Tranche 2 | 2010 | 23.99 | May 2013 - May 2020 | 22.51 |
Tranche 3 | 2011 | 23.64 | May 2014 - May 2021 | 22.84 |
Tranche 4 | 2012 | 22.50 | May 2015 - May 2022 | 24.94 |
Tranche 5 | 2013 | 27.40 | Sept 2017 - Sept 2021 | 27.80 |
Tranche 6 | 2014 | 31.20 | Dec 2018 - Dec 2022 | 31.51 |
Tranche 7 | 2015 | 34.51 | Jul 2019 - Jul 2023 | 33.79 |
Tranche 8 | 2016 | 33.99 | Oct 2020 - Oct 2024 | 39.78 |
Tranche 9 | 2017 | 52.61 | Aug 2021 - Aug 2025 | 50.00 |
Tranche 10 | 2018 | 56.50 | June 2022 - June 2026 | 47.80 |
Tranche 11 | 2019 | 52.50 | May 2023 - May 2027 | 53.00 |
Tranche 12 | 2020 | 47.73 | April 2024 - April 2028 | 49.00 |
Tranche 13 | 2020 | 46.00 | Januar 2025 - Januar 2029 | 49.00 |
Dividend growth | 5.00% | |||
Historical volatility of share price | 26.69% | |||
Discount rate | -0.35% |
As at 31 December 2020, the provision relating to the stock option plan amounts to € 1,061 thousand (2019: € 1,061 thousand) and is recognised in "non-current provisions" in note 18. As at 31 December 2020, 118,328 options can be exercised.
Note 6 - Dividends received
The following table breaks down the dividends received during the year:
in thousands of € | 2020 | 2019 |
Foyer | 5,648 | 10,112 |
Kauman & Broad | 1,033 | 1,787 |
Atenor | 1,387 | 1,321 |
Mehler | 38,530 | - |
SES | 593 | 4,522 |
RTL Group | - | 625 |
Other | 173 | 1,392 |
Total | 47,364 | 19,758 |
Note 7 - Financial income and expenses
a. Financial income
Interest and similar income are mainly composed of interest received on deposit accounts with credit institutions and on loans granted to subsidiaries. As at 31 December 2020, they amount to € 1,207 thousand (2019: € 713 thousand). An analysis of the financial risk relating to interest is detailed in note 25.
b. Financial expenses
in thousands of € | 2020 | 2019 |
Bank expenses and interest expenses | 478 | 622 |
Other expenses | 158 | 131 |
Total | 635 | 752 |
Bank expenses and interest expenses primarily include interest paid on short-term cash advances and negative interest paid on cash at bank. The other expenses primarily include foreign exchange losses on current assets.
Note 8 - Current and deferred tax expenses
The Group recognised the current tax expenses on the corporate profits as follows:
a. Details of taxes
in thousands of € | ||
Corporate income tax (IRC) | ||
Deferred taxes on revaluation of available-for-sale financial assets | ||
Income tax expenses (b.) | 0 | 0 |
Wealth tax | 24 | 25 |
Total | 24 | 25 |
b. Reconciliation of income tax expenses to the accounting profit | ||
in thousands of € | 2020 | 2019 |
Profit before tax | 156,695 | 207,449 |
Company's average tax rate | 26.76% | 24.94% |
Theoretical tax expense | 41,931 | 51,738 |
Restated deferred taxes | - | 99 |
Effect of non-taxable capital gains | -32,131 | -48,906 |
Effect of non-taxable dividends | -12,674 | -4,678 |
Other tax adjustments | 2,874 | 1,747 |
Total tax expense | -0 | 0 |
2020 - -
2019 - -
Note 9 - Intangible and tangible fixed assets
The movements in intangible and tangible fixed assets that occurred during financial years 2019 and 2020 are as follows:
Cost
in thousands of € as at 31/12/2018
Acquisitions and disposals as at 31/12/2019
Software26 24 49 12 61
Office andcomputer
Acquisitions as at 31/12/2020
equipment 403 116 519 33 552
Vehicles
244 673
- 140
244 812
- 46
244
858
Depreciation
in thousands of €
Office andcomputer
Software
as at 31/12/2018 26
Depreciation 0
as at 31/12/2019 26
Depreciation 5
as at 31/12/2020
31
equipment | Vehicles | Total |
129 | 108 | 263 |
32 | 58 | 90 |
161 | 166 | 353 |
63 | 56 | 124 |
224 | 222 | 477 |
Carrying amount
in thousands of €
Office andcomputer
Software
as at 31/12/2019 23
as at 31/12/2020 31
equipment | Vehicles | Total |
358 | 78 | 459 |
328 | 22 | 381 |
Note 10 - Financial assets at fair value through profit and loss
The following tables provide details of changes in financial assets at fair value through profit and loss in 2019 and 2020.
Financial assets at fair
in thousands of € | |
Fair value as at 31/12/2018 | 51,216 |
Asset classification transfer | -51,216 |
Acquisitions | - |
Disposals | - |
Net gains/(losses) on financial assets | - |
Fair value as at 31/12/2019 | 0 |
Acquisitions | - |
Disposals | - |
Net gains/(losses) on financial assets | - |
Fair value as at 31/12/2020 | 0 |
Financial assets held for | value through profit and | |
trading | loss | Total |
1,174,794 | 1,226,010 | |
51,216 | - | |
197,043 | 197,043 | |
-160,522 | -160,522 | |
196,094 | 196,094 | |
1,458,625 | 1,458,625 | |
249,388 | 249,388 | |
-228,838 | -228,838 | |
120,490 | 120,490 | |
1,599,666 | 1,599,666 |
Financial assets at fair value through profit and loss ("AFVPL") are classified into two segments, direct investments and investment funds. During the 2020 financial year, the Group invested:
• € 201,887 thousand in the direct investments mainly in Enoflex, SNP, Atenor and the listed assets of Luxempart PIPE that was merged into Luxempart.
• € 47,501 thousand in the investment funds activity, mainly in Capital at Work and a new bonds portfolio.
The Group sold a part of its shares in SES, Kaufman & Broad and Zooplus generating a realised gain of € 2,130 thousand.
Luxempart PIPE was merged into Luxempart as at 1st January 2020. The assets LPKF, Low & Bonar and Nanogate were sold and generated a realised gain of € 7,937 thousand. These net capital gains realised in 2020 correspond to the value increase since 31
December 2019.
The net gains recognised for 2020 on the Direct investments is € 80,904 thousand (principally on Foyer, Zooplus and Assmann) and € 20,179 thousand on the investment funds.
The carrying amount of the AFVPL is their fair value.
Assets at fair value through profit and loss are categorised as level 1, level 2 and 3 assets.
Fair value hierarchy of financial assets
in thousands of € | Level 1 | Level 2 | Level 3 | Total |
Fair value as at 31/12/2018 | 312,095 | - | 913,915 | 1,226,010 |
Acquisitions | 51,774 | 83,715 | 61,554 | 197,043 |
Disposals | -122,692 | - | -37,829 | -160,522 |
Net gains/(losses) on financial assets | -5,954 | 25,877 | 176,171 | 196,094 |
Fair value as at 31/12/2019 | 235,223 | 109,592 | 1,113,810 | 1,458,625 |
Level transfer | - | 6,493 | -6,493 | - |
Acquisitions | 155,090 | - | 94,298 | 249,388 |
Disposals | -105,132 | -83,715 | -39,990 | -228,838 |
Net gains/(losses) on financial assets | 67,221 | -27,810 | 81,079 | 120,490 |
Fair value as at 31/12/2020 | 352,402 | 4,560 | 1,242,704 | 1,599,666 |
There was one transfer between levels of fair value in 2020. |
Luxempart PIPE was merged into Luxempart, therefore its assets are shown as an acquisition in the level 1.
Level 1 financial assets consist of listed investments, mainly in Zooplus, Atenor, Kaufman & Broad, PIPE assets, and Capital at Work, totalling € 352,402 thousand.
Level 2 financial assets consist of holding companies holding listed investments,
Level 3 financial assets consist of private-equity investments, mainly in Foyer, Armira Holding, Mehler, Stoll, ESG and Luxempart Capital Partners SICAR SA.
Level 1 financial assets risk analysis
An analysis of the sensitivity of the listed assets is provided in the table below. A range of variation of -10% to +10% was applied to the valuation as at 31 December 2020. This range of variation is relevant and reasonably possible.
in thousands of € | |||
Share price sensitivity | -10% | 0% | 10% |
Fair value | 317,162 | 352,402 | 387,643 |
Impact through profit and loss | -35,240 | - | 35,240 |
Level 1 for financial assets
The Group's sensitivity to the stock markets remained virtually unchanged compared with the previous year. The market risk is detailed in the note 25.
Level 2 financial assets risk analysis
A range of variation of -10% to +10% was applied to the valuation as at 31 December 2020. This range of variation is relevant and reasonably possible.
in thousands of €
Level 2 for financial assets
Sensitivity | -10% | 0% | +10% |
Fair value | 3,392 | 4,560 | 5,727 |
Impact through profit and loss | -1,168 | - | 1,168 |
Level 3 financial assets risk analysis |
The following table sets out the impacts of changes in non-observable data on the fair value of financial assets. The information on the methods used to determine the fair value of these assets (including the valuation techniques and input data used) is provided in note 2.
in thousands of € | Level 3 for financial assets | ||
Sensitivity | -10% | 0% | +10% |
Fair value | 1,184,746 | 1,242,704 | 1,306,100 |
Impact through profit and loss | -57,958 | - | 63,396 |
At 31 December 2020, the valuation methods have not significantly changed since 2019.
Note 11 - Non-current loans and receivables
The non-current loans and receivables consist of a loan receivable within more than one year granted to a portfolio company. As at 31 December 2020, it amounts to € 62 thousand (2019: € 844 thousand). The fair value of the non-current loans and receivables does not differ significantly from their carrying amount.
Note 12 - Current loans and receivables
The following table provides details of the current loans and receivables:
in thousands of € | 2020 | 2019 |
Trade receivables | 1,092 | 1,613 |
Tax receivables | 3,816 | 362 |
Accrued interest not yet due | 237 | 101 |
Other receivables | 68 | 53 |
Total | 5,212 | 2,129 |
As at 31 December 2020, Luxempart has a claim of € 3,461 thousand against the German tax authorities.
The fair value of short-term receivables does not differ significantly from their carrying amount. The maturity of current loans and receivables is less than one year.
Note 13 - Bank deposits, cash and cash equivalents
The following table provides details of the bank deposits, cash and cash equivalents:
in thousands of € | 2020 | 2019 |
Bank deposits | 85,000 | 80,000 |
Cash and cash equivalents | 38,978 | 51,366 |
Total | 123,978 | 131,366 |
Bank deposits of the Group are placed on accounts with a maturity between 18 to 36 months. Deposits bear interest at variable rates in force on the market. An analysis of the liquidity risk is provided in note 25.
Note 14 - Capital and share premium
a. Capital and share premium
in thousands of € | 2020 | 2019 |
Subscribed capital | 51,750 | 51,750 |
Share premium | 15,110 | 15,110 |
Total | 66,860 | 66,860 |
The authorised capital amounts to € 90,000 thousand. | ||
b. Capital management |
As at 31 December 2020, subscribed capital amounts to € 51,750,000 and is represented by 20,700,000 fully paid-up shares without designation of nominal value. Each share entitles the holder to a dividend and a vote during General Meetings.
There are no other share classes or options or pre-emptive rights entitling holders to the issuance of shares of another class that could have a dilutive effect on the number of shares issued.
The Company's share capital may be increased from its current amount to € 90,000,000 through the creation and issuance of new shares without designation of nominal value, with the same rights and benefits as existing shares.
The Board of Directors has the authorisation, until the 2021 Annual General Meeting, to buy back own shares. The accounting par value of the shares bought back, including own shares already previously acquired, may not exceed 30% of the subscribed capital. This own share buyback policy is intended to improve the security's liquidity on the stock exchange, grant shares to managers, cancel the own shares through a decision of the Extraordinary General Meeting, or transfer these shares to a new shareholder.
In view of the Group's liquidity, all new investments are funded only from the Company's equity. For investments in private equity, external debt may be used at the level of the investment. The debts contracted by the Group are intended to hedge against foreign exchange risk (see note 17).
Note 15 - Reserves and own shares
a. Legal reserve
From the net profit of the statutory accounts under Luxembourg GAAP, 5% must be deducted annually to build up the reserve fund required by Luxembourg law. This deduction will no longer be mandatory when the reserve fund reaches one-tenth of the share capital.
The legal reserve may not be distributed to the shareholders except in case of dissolution of the Company.
As at 31 December 2020, the legal reserve amounts to € 5,175 thousand (2019: € 5,989 thousand).
b. Other reserves
in thousands of € | 2020 | 2019 |
Consolidated reserves | 1,480,726 | 1,302,154 |
Special reserve | 9,446 | 9,446 |
Total | 1,490,172 | 1,311,600 |
Consolidated reserves |
The consolidated reserves are composed of the income accumulated by the subsidiaries since their first consolidation, as well as some movements related to consolidation entries. These reserves also include the IFRS adjustments of companies within the consolidation scope.
Special reserve
As at 31 December 2020, the special reserve includes the untaxed capital gains from disposal on participations. These capital gains, recognised in the equity, result from application of Article 54 of the income tax law and are to be reinvested within two years following the financial year of the disposal. If these gains are not reinvested within this two-year period, they will be reversed through the consolidated statement of profit or loss and subject to tax.
c. Own shares and reserve for own shares
Number of shares issued | Number of own shares | Number of outstanding shares |
As at 31/12/2018 | 23,913,594 | 3,843,420 | 20,070,174 |
Capital reduction | -3.213.594 | -3.213.594 | - |
Acquisition and disposals | - | -6,398 | 6,398 |
As at 31/12/2019 | 20,700,000 | 623,428 | 20,076,572 |
Acquisition and disposals | - | -13,750 | 13,750 |
As at 31/12/2020 |
20,700,000 | 609,678 | 20,090,322 |
As at 31 December 2020, Luxempart holds 609,678 own shares (2019: 623,428 own shares), with the reserve for own shares amounting to € -16,838 thousand (2019: € -17,218 thousand).
The weighted average number of shares outstanding as at 31 December 2020 is 20,084,332 (2019: 20,075,026).
Note 16 - Dividends paid
A dividend of € 1.48 gross per share was paid during the first half of 2020 in respect of the 2019 financial year, giving a total dividend of € 29,725,167 (2019: € 1.407 gross per share, giving a total dividend of € 28,247,737).
The consolidated financial statements as at 31 December 2020 do not include the dividend that will be proposed to the Annual General Meeting of 26 April 2021. It was not recognised as a liability in the 2020 financial statements.
The Board of Directors proposes an ordinary dividend of € 1.60 gross per share. The payment terms of the dividend will be communicated during the Annual General Meeting of 26 April 2021.
Note 17 - Bank borrowings
As at 31 December 2020, the bank borrowings stand at € 19,169 thousand (2019: € 10,179 thousand) and result from the acquisition of shares in an investment company in CHF. This loan in CHF has been issued in the same currency as the asset in order to hedge any possible currency effects on the profit of the Group. In 2020, the loan in GBP was fully repaid.
These bank borrowings are guaranteed by savings accounts contracted for this purpose. They will be repaid when the underlying financial assets will be sold. These borrowings bear interest at a rate of 3-month Libor +0.9%.
The fair value of these liabilities does not differ significantly from their carrying amount. Management of foreign exchange risk and sensitivity analysis are described in note 25.
Note 18 - Non-current provisions
The following table provides details of the non-current provisions:
in thousands of € | 2020 | 2019 |
Tax provisions | 2,221 | 2,215 |
Other provisions | 1,087 | 1,127 |
Total | 3,308 | 3,342 |
The tax provisions relate to income taxes, municipal business taxes and wealth tax for 2020 and previous years.
The "Other provisions" item includes the € 1,061 thousand provision for stock options (2019: € 1,061 thousand). The characteristics of the stock option plan are detailed in the note 5.
Note 19 - Current liabilities
in thousands of € | 2020 | 2019 |
Tax and social debts | 588 | 424 |
Trade liabilities | 3,982 | 3,753 |
Other debts | 188 | 1,045 |
Total | 4,758 | 5,222 |
Tax and social debts include amounts owed to the tax authorities for social security contributions. Trade liabilities and other debts are mainly composed of amounts due to the Group's suppliers and service providers, as part of its activities. They also include a debt for bonus.
The fair value of current liabilities does not differ significantly from their carrying amount.
Note 20 - List of subsidiaries
a. Subsidiaries providing investment related services, fully consolidated
The following table lists all subsidiaries providing fully consolidated investment related services to the Company:
Subsidiary
Luxempart Invest S.à.r.l
Luxempart Ireland Limited In liquidation Luxempart Management S.à.r.l
Bravo Capital S.A.
Luxembourg Dublin Luxembourg Luxembourg
100% 100%
100% 100%
100% 100%
80% 80%
Given that Luxempart meets the criteria laid down in Article 70 of the Luxembourg Law of 19 December 2002, its Luxembourg subsidiaries are exempt from the requirements relating to the publication of statutory annual accounts.
b. Non-consolidated subsidiaries
Percentage | Percentage | ||
Subsidiary | Place of incorporation | held in | held in |
31/12/2020 | 31/12/2019 | ||
Indufin NV | Belgium | 40.00% | 40.00% |
M-Sicherheitsholding GmbH (Mehler) | Germany | 30.00% | 30.00% |
Pescahold S.A. | Luxembourg | 100.00% | 100.00% |
Pryco GmbH (Prym) | Germany | 55.60% | 55.60% |
Foyer S.A. | Luxembourg | 27.94% | 27.94% |
E-Sicherheitsholding GmbH (ESG) | Germany | 27.60% | 27.60% |
ForAtenoR S.A. | Belgium | 25.00% | 25.00% |
DMB2 GmbH & Co (Stoll) | Germany | 32.80% | 32.80% |
Assmann holding GmbH | Germany | 50.00% | 50.00% |
Luxempart PIPE S.à.r.l ** | Luxembourg | - | 100.00% |
LuxCo Invest S.à.r.l ** | Luxembourg | 83.33% | 83.33% |
Percentage | Percentage | ||
Subsidiary | Place of incorporation | held in | held in |
31/12/2020 | 31/12/2019 | ||
Luxempart Capital Partners SICAR S.A. ** | Luxembourg | 100.00% | 100.00% |
Quip Holding GmbH | Germany | 51.00% | 51.00% |
Bravo Capital Partners SCA RAIF** | Luxembourg | 100.00% | 100.00% |
Arbo S.p.a | Italy | 40.00% | 40.00% |
Metalworks S.p.a | Italy | 60.00% | 60.00% |
Bravo Luxury S.à.r.l (Vesta) | Italy | 70,00% | - |
Luxempart German Invest S.A. ** | Luxembourg | 100,00% | 99.99% |
EduPRO GmbH | Austria | 60.00% | 60.00% |
Arwe Mobility Holding | Germany | 50.00% | 50.00% |
Rimed AG | Switzerland | 29.30% | 29.30% |
Rattay Group GmbH | Germany | 39.90% | 39.90% |
WDS GmbH | Germany | 44.00% | 44.00% |
Luxempart German Invest II S.à.r.l ** | Luxembourg | 100,00% | 99.99% |
Novotergum GmbH | Germany | 43.80% | 43.80% |
Luxempart French Investment S.à.r.l ** | Luxembourg | 100.00% | 100.00% |
D'Alba Invest S.à.r.l ** | Luxembourg | 99.22% | 99.22% |
Indufin Capital Partners S.A. SICAR ** | Belgium | 50.00% | 50.00% |
Decoscent S.A. (Baobab)* | Belgium | 61.50% | 61.50% |
Kyotec Group * | Luxembourg | - | 32,00% |
Axithon S.A. (Axi)* | Belgium | 51.59% | 51.59% |
This table lists all entities under the Company's control or significant influence which are measured at fair value through profit or loss (note 10), as well as their own controlled or under influence subsidiaries. Luxempart neither provided nor committed to provide financial or other support to any of its non-consolidated subsidiaries.
* The percentages indicated are the percentages of ownership by Indufin Capital Partners, which is held at 50% by Luxempart Capital Partners SICAR.
** These entities are investments entities, such as defined by IFRS 10.
Note 21 - Main off-balance sheet rights and commitments
The Group has invested in investment funds through its subsidiary Luxempart Capital Partners SICAR. As at 31 December 2020, € 110,048 thousand remain uncalled.
These funds are mainly Ekkio funds (€ 28,232 thousand), Quadrille Technologies funds (€ 20,454 thousand), Faso (€ 13,340 thousand), Apax (€ 14,625 thousand), Committed Advisors (€ 12,525 thousand) , CGS V Feeder (€ 12,000 thousand).
Bravo Capital Partners RAIF has recognised an uncalled capital amounting to € 23,459 thousand to be paid by Luxempart Capital Partners SICAR.
As at 31 December 2020, the commitment for Armira I and Armira II is € 34,198 thousand.
Note 22 - Directors' allowances and executive management remuneration
in thousands of € | 2020 | 2019 |
Directors allowances and attendance fees | 986 | 891 |
Management remuneration | 3,743 | 3,267 |
Total | 4,729 | 4,158 |
Directors' allowances and attendance fees as well as executive management remuneration for 2020 is recognised in "Operating expenses" (note 4) and in "Staff costs" (note 5). The remuneration of executive officers includes a provision for bonus payable in 2021, relating to 2020.
Note 23 - Remuneration of the Réviseur d'entreprises agréé
The following table shows fees paid to the Réviseur d'entreprises agréé. Audit fees cover the review of the interim consolidated financial statements as at 30 June and the audits of the statutory and consolidated financial statements as at 31 December. They do not cover work on subsidiaries' financial statements, which, where applicable, are audited by other auditors. The audit fees are recognised in "Operating expenses" (note 4).
in thousands of € | 2020 | 2019 |
Audit fees relating to the statutory and consolidated accounts | 111 | 107 |
Total | 111 | 107 |
The Réviseur d'entreprises agréé of the company is also the Réviseur d'entreprises agréé of some subsidiaries (Luxempart Capital Partners, Indufin Capital Partners, Bravo Capital Partners, Luxempart German Investments II). The remuneration of the Réviseur d'entreprises agréé for these subsidiaries is € 92 thousand (2019: € 95 thousand). During the year, the Réviseur d'entreprises agréé provided, in addition to the legal audit services, other services (tax advisory, training…) for an amount of € 5 thousand (2019: € 1 thousand).
Note 24 - Related parties
Income resulting from services provided recognised in the statement of profit or loss exclusively comes from services provided by Luxempart and billed to its subsidiaries and investments.
The Foyer Assurances group rebills, on a quarterly basis, office rental expenses and other related expenses, insurance expenses, and miscellaneous services for a total of € 614 thousand (2019: € 754 thousand).
Two members of Luxempart's Group Executive Committee are not employee of the Group and invoices consulting fees to the Group. The fees amount to € 550 thousand for 2020 (2019: 313 thousand).
Transaction fees paid to Capital at Work, a subsidiary of the Foyer Group, amount to € 20 thousand (2019: € 23 thousand) and are included in "Interest and similar expenses" (note 7).
Note 25 - Financial risks
Management of market risk
The Group's major risk is the exposure of its financial assets to market risk. The risk management policy is established and controlled by the Group Executive Committee, the Board of Directors, and the Audit, Compliance and Risks Committee.
Market risk is the risk of loss in value of financial assets. The main risks and uncertainties to which the Group is exposed relate to the performance of the financial markets (stock markets, comparable transactions, market multiples, etc.). Luxempart does not systematically sell its participations based on financial market volatility. In principle, the Group does not use market risk hedging instruments. It nevertheless regularly monitors changes in the value of its investments.
The investments in companies listed on the stock exchange (mainly stock exchange of Luxembourg, Brussels and Paris) represent 20.8% as at 31 December 2020 of the Net Asset Value (2019: 14.9%).
The table below presents the investment by asset class based on the total financial assets (excluding loans and receivables):
2020 | 2019 | |
Investment in listed companies | 22.1% | 16.1% |
Investment in private equity | 77.9% | 83.9% |
Total | 100.0% | 100.0% |
A sensibility analysis of the listed financial assets is presented in the notes 10. | ||
Management of interest rate risk |
The average duration of the placement of fixed-term deposits varies between 35 days and 36 months, and the average rate over 2020 is zero. The analysis below presents, at a constant cash position, the pre-tax impacts that the increase or decrease in interest rates would have on the Group's profit at 31 December 2020.
in thousands of € | 2020 | 2019 |
Variation of + 50 basis points | 638 | 830 |
Variation of - 50 basis points | -638 | -830 |
Management of foreign exchange risk | ||
The Group invests mainly in positions in the Group's functional currency (EUR). |
Foreign currency positions in non-current assets are hedged against foreign exchange risk. The assets are acquired through a loan denominated in the foreign currency (note 17).
An investment recognised as financial assets at fair value through profit or loss is in US dollars. This position is not hedged against foreign exchange risk. It represents 1.4% of the financial assets at fair value through profit or loss. The change in the exchange rate has not a significant effect on the change in fair value.
Management of credit risk
Credit risk is the risk that contracted third parties do not meet their commitments towards the Group during transactions with it. Credit risk lies not at the Luxempart level but at the level of the investments, which are responsible for managing their credit risk according to the specific terms appropriate for their situation.
Luxempart has granted loans to companies of the Group totalling € 62 thousand as at 31 December 2020 (2019: € 844 thousand).
If necessary, Luxempart may grant guarantees to companies in which it has invested.
Luxempart minimises its risk exposure by entering into commitments with financial institutions with a high rating. In order to minimise any concentration risk, Luxempart diversifies its exposure by several banking institutions, with a maximum to 5% of equity.
During 2020, there has been no significant change in relation to the credit risk management.
Management of liquidity risk
As at 31 December 2020, Luxempart has a high level of liquidity. Luxempart has taken out currency loans as instruments to hedge foreign exchange risk following the acquisition of assets. These loans are secured by deposit accounts of the same amount in euros (see note 17). The liquidity default risk is low.
Note 26 - Significant event
The Covid pandemic caused a worldwide crisis since the first quarter of 2020 with strong negative impacts on population and economies. The successive waves with associated restriction measures, the more aggressive virus mutations and the slow roll-out of vaccinations in Europe prolongs the crisis and delays the social and economic recovery.
Our investment and management team responded swiftly and prudently such as to support our portfolio lines and protect our employees and their families. It appears that our companies turned out to be resilient and well prepared for the after Covid world. Indeed, not all sectors have been impacted similarly by the pandemic and the diversity f our portfolio as well as the strength of our main lines allowed us to increase our net asset value despite the economical headwind.
Note 27 - Events after the reporting period
During the first months of 2021, Luxempart closed two further new investments, increased its holdings in several lines and sold some investments.
The operations are the following:
• Investment of € 25,000 thousand in Sogetrel, a French company active in the telecom, IP security and digital solutions market through smart network and services, with a further commitment of ca. € 15 million for follow-on investments.
• Agreed investment of € 25,000 thousand in iM Global Partners, a French worldwide asset management network with stakes in independent asset managers and a strong distribution force providing its clients access to the best asset management strategies.
• In Schaltbau, commitment to subscribe up to 20% of the € 60 million mandatory convertible bond issue such as to hold within the acting in concert group on anchor stake above 20%, Schaltbau being a leading German supplier of systems and electromechanical components in the railway and capital goods industry.
• Agreed sale of our 15% stake in NMC (via Indufin Capital Partners SICAR) realising a 15% IRR.
• Sale of Kaufman & Broad and RTL for € 31,931 thousand.
Management Report
Management Report ...................................................................................................................................................... 1
What we stand for .......................................................................................................................................................... 2
Message to our shareholders ......................................................................................................................................... 3
Our investment strategy ................................................................................................................................................. 6
One Team ...................................................................................................................................................................... 7
The year at a glance ...................................................................................................................................................... 8
Activity report of the Board of Directors ........................................................................................................................ 12
Evaluation of the equity and summary of the financial statements ........................................................................... 12
Internal evolution ...................................................................................................................................................... 18
Outlook ..................................................................................................................................................................... 19
Main risks and uncertainties ..................................................................................................................................... 19
Other information ......................................................................................................................................................... 20
Research and development .................................................................................................................................. 20
Own shares ........................................................................................................................................................... 20
Branches ............................................................................................................................................................... 20
Transparency ........................................................................................................................................................ 20
Reconciliation between IFRS and the Portfolio activity report ............................................................................... 21
What we stand for
LUXEMPART is a Luxembourg listed investment company with more than 25 years of existence, an estimated net asset value of € 1.7 billion as of end of 2020. The core team of 25 professional and support staff is based in Luxembourg and actively covers the target markets of France, Benelux, DACH region and Northern Italy.
Luxempart's investment strategy is built on two pillars:
• Direct Investments: minority and majority stakes in mid-sized companies in Continental Europe, either privately held (private equity) or listed.
• Investment Funds: indirect investment activity via third-party private equity funds in venture, growth capital and buy-outs, both in Europe and increasingly worldwide.
Luxempart has stable and involved family shareholders with industrial background who promote:
For their shareholders
• A resilient and diversified portfolio of growing companies
• A steadily increasing dividend
• A direct access to private equity investments managed by a seasoned team
• An access to top-class private equity funds operating world-wide
• A first class governance of a listed company
For their business partners
• Tailor-made solutions for family businesses and managers
• An entrepreneurial and industrial mindset
• An active support on all major strategic decisions and capital to foster growth initiatives or to resist hard times
• A flexible investment horizon with a true long-term approach, aligned on Luxempart management remuneration scheme, based on long-term value creation
• The ability to help national champions to become truly European and develop worldwide
Direct investments are realised along the following guidelines
• Investment amounts from € 25 to € 100 million (in equity)
• Investment in privately held and listed companies
• No exit pressure with investment horizons well beyond traditional private equity funds
• Supportive, hands-on approach
• No sector focus but affinity for financial services & insurance, telecommunication, security, healthcare and education.
Luxempart shareholders and management believe in value creation through patient involvement and a shared vision with our partners. We foster an ambitious team spirit based on a truly European work environment and empowering team members early on.
Our track record over the last twenty-five years has been positive with a group IRR above 15% and with a regular dividend increase.
Message to our shareholders
Dear Shareholders,
2020 has been an extraordinary year. The world was taken by surprise by the Covid pandemic. In many countries, we have seen unprecedented lockdowns for several months. Governments reacted quickly. Sanitary measures and extensive testing were put in place to slow down the spreading of the virus. Central banks provided sufficient liquidity and markets recovered rather quickly and even closed in positive territory at year end.
In a record time, vaccines were developed and approved. Today, we see massive vaccination campaigns all around the world and we foresee a light at the end of the tunnel in 2021.
Uncertainty remains as the Covid crisis is not yet over, but we see first take-aways for our industry:
This crisis has accelerated trends of digitalisation. For instance, who would have thought it possible that in such short amount of time millions of people would be able to switch to home office and home schooling. Our ways of working have evolved and our workplaces will have to adapt. Traditional retail has suffered and e-commerce comes out strong and will most probably continue its acceleration. Sectors such as travel, tourism and hospitality have been hit hard and might need several years to fully recover to pre-crisis levels.
Luxempart's portfolio has resisted well. After a decrease in value mid-year, we close the year with a growth in our Net Asset Value (NAV) of 8.0%, which reaches €1.7bn. We have generated an annual NAV increase per share of 10.0% when reintegrating the dividend we paid in April 2020. This performance compares favourably to the MSCI Europe Mid Cap Net Return Index, which we consider to be our benchmark (+3.35% in 2020). This is in part related to the turn-around of global financial markets, but mostly due to significant resilience of the portfolio and little exposure to hard hit sectors. More than 50% of our companies have grown sales in 2020 and even more than 60% have improved results this year.
Despite these very sound fundamentals of our companies, crisis brings about need for change and transformation. We believe this is an opportunity for private equity, as it has shown its ability in the past to actively help companies to rethink themselves and seize opportunities, thanks to vast financial resources and professional teams.
As mentioned in our message to you last year, a transition period has opened for your company. Even though it will last for some time, first positive results have been achieved:
• Two new managing directors were nominated in April 2020 and as in the coming 12 months a further member of the executive team will retire, there will be further change.
• Management has launched the strengthening of our investment teams in direct investment and investment funds to support our updated strategy by increasing deal sourcing and execution.
• Adaptation of our investment funds strategy which will allow us to expand our venture capital, growth and buyout fund portfolio to the US and Asia.
• Streamlining of our direct investment portfolio to constitute a more concentrated portfolio of larger lines in private equity and selected listed lines.
• This revised investment strategy was implemented without delay and resulted in sustained investment in attractive growth sectors and solid divestment activity in 2020: your company has invested € 112m in 2020 in both strategies and taken the firm commitment to invest € 40m in an additional transaction that was closed in early 2021. The streamlining of the portfolio has generated sales proceeds of € 149m at returns in line with our long-term objective.
We approach 2021 with a cautiously optimistic stance. Macro-economic environment should improve strongly, admittedly after a very difficult year 2020. Our portfolio companies are faring well and seize new growth opportunities offered by the improving overall environment. Investment activity, under the impetus of the economic recovery and improving capital markets should remain sustained. We will nevertheless remain selective and cautious since the expected scenario heavily relies on the acceleration of the vaccination campaigns and the progressive return to normality of our economies. Our objective is to invest at least € 150m in new direct investments and to take up ca. € 75m new commitments in the investment funds activity, deployed along the revised strategy for this segment. In parallel, we will pursue the effort to streamline our portfolio and expect a number of sales processes to succeed in 2021. Such exits will keep our cash position at a high level, but we are confident that with our growing investment team and strengthened fund-of-fund approach, we will be able to deploy our capital wisely.
Luxempart has been a front runner of private equity in Luxembourg for more than 25 years. We are pleased to see that Luxembourg as a location has continuously grown to become an attractive European platform for private equity and is able to attract more and more front and middle office activities as well as investment teams. This significantly contributes to support and develop the financial ecosystem related to the asset management industry, thereby starting to create a cluster effect that will help our national economy to grow sustainably in the future.
Based on the positive results of 2020, the Board of Directors proposes to shareholders the payment of a gross dividend of €1.60 per share (€ 1.36 net) compared to €1.48 gross per share (€1.26 net) in 2020, an increase of 8% over prior year. As a reminder, Luxempart has maintained since 1992 a constant dividend policy, consisting in growing the dividend by ca. 10% p.a. on average.
We would particularly like to thank all the members of the Board of Directors and the Luxempart team for their great dedication in these exceptionally difficult circumstances. These results would not have been achieved without the unanimous support and commitment of all parties involved.
We also thank you for your continuing support and loyalty and assure you that all energies within the Group are focused on the sustainable development of your Company and on solid value creation of our investment portfolios.
François Tesch | Jacquot Schwertzer | John Penning | Olaf Kordes |
Executive Chairman | Vice-Chairman | Managing Director | Managing Director |
"As Executive Chairman, my primary focus was on the transition process at executive level. Olaf Kordes has joined the executive team since early 2020 and has brought to the Executive Committee deep knowledge and experience in private equity, perfectly complementing John Penning's more entrepreneurial background. Today, Luxempart is managed by a collegial Executive Committee of four members with complementary backgrounds. This has strengthened the internal organisation and enlarged the deal flow for potential deals, especially in France. An additional executive will be recruited shortly. I am pleased to say that this transition, even though not yet fully accomplished, represents a major successful step for the future development of the Company.
It was also encouraging to see that the new managing directors have endorsed the strategy initiated by the previous managers. Even though and rightly so, this strategy was adapted to changes in the investment environment and to the size of Luxempart."
Our investment strategy
In accordance with what we stand for, we thrive to deploy our investment activity based on a two-pillar strategy.
Our core business remains the Direct Investment activity, which focuses on deploying an average € 50 million per transaction in growing, profitable companies located in our core markets. Such investments target sustainable growth for the companies we invest in and long-term returns for our shareholders. That is why we consider investments over longer terms with no predefined exits. This is the main differentiating factor to classic private equity funds operating in our space.
Such investment projects can be realized in both public and private companies under the form of growth capital investments (with no external debt) or leveraged buy-outs, and can grant Luxempart either minority or controlling stakes in the company.
The strategy in the direct investment activity has been developed many years ago, but has recently been adapted:
Given the size of our Net Asset Value, it was decided to increase the average investment ticket to € 50 million, with a lower limit at € 25m (but with a view to increase investment over time), in order to have a meaningful impact on our Net Asset Value.
Also, in order to be able to actively create value, it was decided that all portfolio companies, whatever capital stake Luxempart holds in them, should grant us adequate governance rights. Such rights should enable us to contribute to shaping our portfolio companies' strategy and to assess its implementation in a timely and professional manner. We are able to give active and hands-on support.
Over the year 2020, we have reviewed our portfolio under the light of this revised strategy and have initiated a number of arbitrage decisions that will lead to a streamlining of the portfolio.
Our objective is to manage by the end of 2023 a more concentrated portfolio, composed of ca. 20 companies that all fit the above-mentioned criteria and present sustainable profitability, significant growth prospects and good visibility. This portfolio will continue to contain both public and private companies.
This means that over the three coming years, we will commit, in parallel to a growing investment activity, to sell a number of listed and unlisted portfolio companies. This process has been initiated in 2020 in an orderly manner, allowing to achieve capital gains in line with our long-term IRR objective.
The second pillar of our strategy is the Investment funds activity.
Historically, this indirect investment activity was centred on four long term relationships where Luxempart is among the cornerstone investors of these funds in Belgium, Germany, France and Italy.
However, their investment activity was to a large extent in overlap with our direct investment activity, which even
resulted in Luxempart sometimes co-investing alongside these partners.
The quality of the teams in three of these funds, their performance, track-record and their development perspectives have decided us to continue to actively support them in the future.
However, it was also decided to dedicate additional means to the Fund-of-Funds activity in order to allow it to double its size in the five coming years, by re-investing proceeds received and by tapping into existing cash reserves of Luxempart.
The target is to commit between € 75 million and € 100 million per annum to 5-8 new funds. However, the overall objective of the Fund-of-Funds activity was set to become a means of diversification, in order not to be any more in overlap with the direct investment activity.
Thus, Fund-of-Funds will seek to internationalise its future commitments by focusing essentially on North America and (more marginally) on Asia. It will commit investments to growth capital and mid-cap buy-out funds, but will also diversify to seek investment opportunities in compelling earlier stage venture funds.
In order to achieve this, the Fund-of-Funds team has retained the services of a first rate global and specialized consulting firm (a so-called gatekeeper). It will support Luxempart in identifying, selecting and diligencing new and promising fundraising projects within the targeted strategies. In order to achieve the overall objective, Luxempart has retained the service of this gatekeeper for a three-year period.
One Team
The shift in strategy has come with a change in the management team. In April 2020, Jacquot Schwertzer has withdrawn from his CEO function to become Vice-Chairman of the Board of Directors.
The shareholders have nominated two managing directors, John Penning and Olaf Kordes, who have started to build up a team commensurate with the new strategy. This process is ongoing with several recruitments underway and should be completed in 2021. We will then have a team that will be able to deploy investment volumes in line with the targets announced.
The variable remuneration scheme for the team is mainly based on value increase of the net asset value.
The year at a glance
Good resistance of portfolio Limited impact of Covid
No significant exposure to hard hit sectors such as travel, tourism, hospitality or traditional retail
55% of our Companies in Direct Investment improve sales in 2020 63% of our Companies in Direct Investment improve their results
Our Investment Funds Portfolio increases in value by 7.9%
2020 was a transitional year. The shift in strategy was initiated and has produced first results:
Luxempart has invested € 88m in its Direct Investment activity, notably in Enoflex and SNP. Furthermore, in November 2020, we have committed to invest ca. € 40m in Sogetrel, which was completed in late January 2021.
In December 2020, Luxempart, alongside other family investors led by Armira, has closed the sale of Mehler Vario Systems, generating revenues of € 38.5. The immediate realised return is close to 3.8x, with additional conditional revenues to come over the coming years.
The Investment funds team has made commitments to two reputed secondaries funds (LGT, Committed Advisors) in 2020. Execution of the new strategy has started and a first commitment in a very promising US growth fund (outstanding management team raising its 5th generation fund), was made in early 2021. In the meantime, the Fund-of-Funds activity has pursued exits and has received total proceeds of € 24m in 2020. Overall, its portfolio has generated a performance of 7.9% in 2020.
In early 2021, we have pursued this strategy notably by continuing to focus the listed portfolio on a limited number of lines and by taking an additional commitment to invest in Schaltbau AG. Furthermore, we have signed a new Direct Investment transaction, iM Global Partner.
Even though we will pursue our investment activity at a sustained pace in 2021 and beyond, our cash position and trading portfolio, net of commitments in our Investment funds activity of ca. € 140m, will remain at a high level.
Indeed, we try to take a cautious approach to new investment opportunities given the limited visibility in the current economic environment. Even though we remain cautiously optimistic about a pick-up in activity during 2021, we need to invest in solid companies.
This is all the more adamant since our existing portfolio has been faring very well in 2020. Even though some companies had to rely temporarily on public aid schemes, the vast majority of them has been only moderately affected by the economic crisis.
55% of our portfolio companies have achieved sales at least comparable to 2019 and 63% have seen their results increase in 2020. This fact associated to the increase in global financial markets in the second half of the year explain the increase in our Net Asset Value that reaches € 1.702 million in 2020 (+ 8%), which brings our total performance (dividend included) to 10% in 2020.
Activity report of the Board of Directors
Evaluation of the equity and summary of the financial statements
The financial statements of Luxempart have been prepared in compliance with the International Financial Reporting Standards for the year ending 31 December 2020.
Main KPI | 31/12/2020 | 31/12/2019 |
(in € million) | ||
Equity (group share) | 1,702 | 1,575 |
Net result | 157 | 207 |
Market capitalisation | 985 | 1,064 |
Net asset value | 1,702 | 1,575 |
The Group equity of Luxempart increased from € 1,575 million end 2019 to € 1,702 million end 2020, or per share from € 78.43 to € 84.72, an increase of 8%.
The consolidated net result reaches € 157 million, compared to € 207 million in 2019, mainly due to the fair value evolution of Luxempart's portfolio (for more details, please refer to note 10 of the IFRS financial statements).
The consolidated result of the year ending 31 December 2020 of € 157 million is mainly composed of € 168 million from investments activities (dividends received and capital gains/losses - realised and unrealised) and € -11 million expenses on ordinary activities (operating expenses, staff cost…).
In the statutory accounts (under Lux Gaap) of Luxempart, the equity increased from € 1,093 million as at 31 December 2019 to € 1,131 million as at 31 December 2020 and the net result increases over the same period from € -19,1 million to € 67,7 million.
Group portfolio activity
The indicators below present the activity of the portfolio of the Luxempart Group looking through its investment subsidiaries.
Luxempart is a long-term investor active in the small and mid-cap market segment in specific geographies in Europe and although generalist, with an affinity for certain sectors like financial services, education, healthcare.
Our mission is to take minority and majority stakes of a significant size (from €25 million upwards) alongside entrepreneurial families or managers and to contribute to value creation until the right moment has arrived to withdraw fully or partially.
In line with its long-term investment approach, Luxempart, is building a fund portfolio with selected managers with the objective to reach by 2025 a NAV of up to € 500 million. Part of it will be in US and Asia-based funds and we expect to generate attractive co-investment opportunities. Luxempart is an active and responsible investor who will progressively include ESG strategies on corporate management level and in investment process and monitoring.
Portfolio activity1 | 31/12/2020 | 31/12/2019 | Variation |
(in € million) | |||
Investments in the portfolio | 112 | 149 | -25% |
Divestments from the portfolio | 149 | 127 | 17% |
Net cash (cash net of financial debt) | 140 | 155 | -10% |
Trading portfolio | 96 | 79 | 22% |
Net realised and unrealised capital gains | |||
155 | 193 | -20% | |
(losses) on the portfolio |
The net realised and unrealised capital gains measure the increase or decrease of fair market value over 2020. The net realised capital gain is less significant as it measures the value increase (or decrease) of a sold asset as from 1 January 2020 to the date of exit. For 2020, this mainly concerned SES and LPKF partially or totally sold over the period. The valuation exercise is based on market multiples of peer groups after discount for smaller size or reduced liquidity. The valuations are thoroughly verified internally and for the most impacting ones, by an external expert of international reputation.
The net cash is composed of cash deposits of € 159 million and a financial debt of € 19 million. The trading portfolio of €M 96 is invested mainly in diversified bond portfolio.
The investment in the direct investment segment amounts to € 88 million and to € 24 million in the investment funds. The divestment in these different segments were € 125 million for the direct investment and € 24 million for the investment funds.
Dividend payment 2021
The Board of Directors will propose to the Annual General Meeting on April 26, 2021 to approve the payment of a gross dividend of € 1.60 per share, compared to a dividend of € 1.48 in 2019. This increase of dividends of 8.1 % is in line with the dividend policy applied since 1993. Assuming the approval of this proposal, the dividend will be payable as from 17 May 2021.
1 For its performance reporting, the Management of the Group does not exclusively refer to a reporting prepared under IFRS. In addition to the IFRS financial statements, the Group presents indicators of the portfolio activity. The portfolio activity reporting is based on financial measure other than a financial measure defined in the applicable financial reporting framework (IFRS). For more information on the difference between the Group portfolio activity reporting and the IFRS, please refer to the "Other Information" section of this present report. A reconciliation between the portfolio reporting and the IFRS financial statements is presented hereafter.
Key figures per share
12.00 € 10.00 € 8.00 € 6.00 € 4.00 € 2.00 € 0.00 €
Net Asset Value
90.00 € 85.00 € 80.00 € 75.00 € 70.00 € 65.00 € 60.00 € 55.00 € 50.00 €
31/12/2018
31/12/2019
Earnings per share
31/12/2020
10.33 €
31/12/2018
31/12/2019
31/12/2020
The global performance of Luxempart reaches 10.0% including the dividend paid in May 2020.
• The Board of Directors proposes an ordinary dividend per share of €1.60 (€1.36 net) to be paid in May 2021
Share price & discount
50.0% 42.2% 60.00 €
40.00 €
20.00 €
0.00 €
31/12/2018
31/12/2019
Share priceDiscount
40.0% 30.0% 20.0% 10.0% 0.0%
31/12/2020
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Disclaimer
Luxempart SA published this content on 26 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2021 09:11:01 UTC.