Bnp Paribas Ace Manager Challenge



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INITIAL PUBLIC OFFERING OF GTI ACE Manager Challenge Petteri Hajanen Berben Jordy Jorien van den Bergh Agenda Why is an IPO the right thing for GTI? How does an IPO work? Advantages and disadvantages of an IPO Financial details Execution strategy: how to attract which investors? Conclusion Why is this the right time? Company readiness •? Cash injection of 40m aces needed for growth in the next three years •? Impressive growth prospects will attract investors

Market readiness •? IPO activity is recovering after the financial crisis •? Capital raised in Oct/Nov 2009 quarter was highest since 2004, and trend is expected to continue Industry readiness •? Tech companies have a recent history of successful IPO’s How does an IPO work? Potential investors GTI Underwriter (BNP Paribas) Advantages Capital access Free trade in shares: higher liquidity Incentive for good corporate governance Higher credibility

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Lose part of ownership and control of the company Extensive reporting and regulation compliance Higher pressure on management Expense of IPO Disadvantages Company valuation Industry Apparel Computer software Biotechnology Internet software and services GTI Price to book value 2. 28 3. 91 3. 9 4. 27 Return on equity 4. 16% 11. 04% 5. 05% 5. 72% 16. 83% Book value GTI 59,906,336 Company value (x 3. 91) 234,233,774 Ownership •? Introduce 1,000,000 new shares •? Based on company valuation, we need to sell 220,000 shares to raise 50m aces

Owner John Mackenzie Employees Investors Number of shares 1,680,000 100,000 220,000 Ownership 84% 5% 11% Execution strategy 1 2 3 •? Target institutional investors •? Easier to reach •? Interested and knowledgeable investors •? Technology-related but not as risky •? Build confidence among investors •? Assure commitment of CEO •? Show elaborate business plan •? Show proof of past results and expected future growth •? Building a final prospectus •? Price range and price negotiations •? Announcement of date of IPO

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