quest for growth...¾19/9/2011: clear2pay and systar (euronext paris isin: fr0000052854-sar) , the...

1

Quest for Growth

Press & Analyst Meeting28 October 2011

2

Agenda

Introduction

Q3 2011 results and performance Quest for Growth

Comments on unquoted portfolio

Comments on quoted portfolio

Questions and Answers

3

IntroductionKey facts

• Net Asset Value per share on September 30th 2011: € 7.99(December 31st 2010: € 8.99)

• Net loss on September 30th 2011: € 14.2 million (€ 1.23 per share) against a profit of € 11.8 million (€ 1 per share) at September 30th 2010

• Share price on September 30th 2011: € 5.00 (December 31st 2010: € 5.31)

• Discount of the share price versus Net Asset Value: 37.40 % on September 30th 2011(41% on December 31st 2010)

• One new investment in unquoted portfolio: Cartagenia € 1,250,000

• New board installed

• New major shareholding disclosed: FIM

• BVFA/ABAF award - ranking investor relations: 4th place

4

IntroductionNew board of directors installed

(*) independent

(*)

(*)

(*)

(*)

5


6


3 Board members leave the company:

7


Mr. De Proft graduated with a masters degree in Electrical Engineering and a postgraduate degree in Medical Engineering in 1982.

Mr De Proft was president, CEO and member of the board of directors of ICOS. ICOS was a public company, listed on the Euronext and Nasdaq stock market.

In 2008 ICOS Vision systems was acquired by KLA-Tencor. Mr De Proft remained on board with ICOS until early 2009.

As chairman of the board of IMEC, Mr De Proft has experience with a high-tech organization of approximately 1600 researchers. IMEC has a large technology network around the world and is actively connected to Belgian and European development programs.

8


Baron Bernard de Gerlache de Gomery, PhD in Law (UCL) , Master of Business Administration (Boston University), managing director of Belficor NV, chairman of Editions Dupuis NV, vice chairman of Texaf NV, director of Sipef NV, Floridienne NV, Siat NV.

9


Regine Slagmulder is Partner and Full Professor management accounting & control at the Vlerick Leuven Gent Management School, where she is also head of the Competence Center Accounting & Finance. She is a guest professor at the Faculty of Economics and Business Adminstration of the Ghent University too. Beforehand she worked as strategy practice consultant at McKinsey & Company. She was previously joined to INSEAD as fullltime professor and to the Tilburg University as professor in management accounting. Regine Slagmulder graduated as civil electrotechnical engineer and as business engineer at the Ghent University, after which she obtained a PhD in Management at the Vlerick School. For her research activities she was joined as a Research Fellow to INSEAD, Boston University (USA) and the P. Drucker Graduate Management Center of Claremont University (USA). Her research and teaching is focussed on performance, risk en governance.

10


Philippe de Vicq brings over 30 years of international experience in private equity and investment management. In his last position he was CEO of KBC Private Equity. De Vicq has a wide network among Belgium's mid-cap and family-owned businesses.

11

IntroductionBVFA/ABAF award

12

IntroductionNew major shareholding disclosed

13

Agenda

Introduction





14


Stock Price

30/09/2011 30/09/2011 31/08/2011 31/12/2010

5.00 EUR 7.99 EUR 8.34 EUR 8.99 EUR

Number of shares 11,529,950 11,529,950 11,789,255

Source: Estimate by Quest Management NV

The net asset value is calculated after dividend distribution and without taking into account the different dividend rights pertaining to the different classes o f shareholders.

Net asset value/share

15


16


17


18


-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

-50

-40

-30

-20

-10

0

10

20

30

2003/2004 2004/2005 2005(6 months)

2006 2007 2008 2009 2010 2011(9 months)

Ret

urn

Net

resu

lt in

€m

illio

ns

Boekjaar:

Net result in € millions Return

Dividend: € 0 € 0 € 0,69 €1,95 € 0,05 € 0 € 0 € 0 € 0

19

Results from 2005 until todayQ3 2011 results and performance Quest for Growth

-20,000,000

-10,000,000

-

10,000,000

20,000,000

30,000,000

40,000,000

2005 2006 2007 2008 2009 2010 2011 (untilSeptember

30th)

20

-25000000.0

-20000000.0

-15000000.0

-10000000.0

-5000000.0

-

5000000.0

10000000.0

15000000.0

Q3/

2002

Q4/

2002

Q1/

2003

Q2/

2003

Q3/

2003

Q4/

2003

Q1/

2004

Q2/

2004

Q3/

2004

Q4/

2004

Q1/

2005

Q2/

2005

Q3/

2005

Q4/

2005

Q1/

2006

Q2/

2006

Q3/

2006

Q4/

2006

Q1/

2007

Q2/

2007

Q3/

2007

Q4/

2007

Q1/

2008

Q2/

2008

Q3/

2008

Q4/

2008

Q1/

2009

Q2/

2009

Q3/

2009

Q4/

2009

Q1/

2010

Q2/

2010

Q3/

2010

Q4/

2010

Q1/

2011

H1/

2011

Q3/

2011

Quest for Growth - Resultaten per kwartaal

Q3 2011 results and performance Quest for GrowthQuarterly results

21

NAV compared to Market Indices at 30 September 2011Q3 2011 results and performance Quest for Growth

-13.40%

-11.19%

-6.79%

-9.90%

-15.71%

-10.99%

-17.11%-17.99%-20%

-15%

-10%

-5%

0%

5%

10%

15%

Since June 30th 2011 Since December 31st 2010

Performance of Quest for Growth NAVand market indices to September 30th 2011

QfG Net Asset Value

Nasdaq (in Euro)

New Markets 50

DJ STOXX 600 (in Euro)

22

Q3 2011 results and performance Quest for GrowthAdded value per sector

23

Results of currency hedge since the beginning of the fiscal yearQ3 2011 results and performance Quest for Growth

-500,000

-300,000

-100,000

100,000

300,000

500,000

700,000

900,000

jan 11 feb 11 mrt 11 apr 11 mei 11 jun 11 jul 11 aug 11 sep 11 okt 11 nov 11 dec 11

EU

R

24

Share price: Total shareholders returnQ3 2011 results and performance Quest for Growth

25

Q3 2011 results and performance Quest for GrowthShare price: Discount to Net Asset Value: 37.40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

Average discount of Belgian investment companies (Source: KBC Securities)

Discount Quest for Growth

Discount of Quest for Growth andBelgian investment companies

26

Q3 2011 results and performance Quest for GrowthPortfolio composition and market cap at 30/09/2011

€ 0

€ 10,000,000

€ 20,000,000

€ 30,000,000

€ 40,000,000

€ 50,000,000

€ 60,000,000

€ 70,000,000

€ 80,000,000

€ 90,000,000

€ 100,000,000

Cash +Other net assets

Quoted portfolio Unquoted portfolio Venture funds Market cap

27

Q3 2011 results and performance Quest for GrowthDistribution of the portfolio by sector at September 30th 2011

Software &Services27.5% Electrical &

Engineering16.4%

Pharma &Biotech14.2%

Funds &DiversifiedCompanies

16.9%

TechnologyHardware

9.4%Materials

5.5%

Other sectors3.4%

Health CareEquipment &

Services4.6%

Semiconductors2.2%

28

Q3 2011 results and performance Quest for GrowthDistribution of the portfolio by country at Sep 30th 2011

Belgium30.7%

Germany12.5%

Netherlands21.3%

United Kingdom12.6%

Switzerland2.0%

France8.9%

Austria3.9%

Israel3.7%

Ireland4.1% US

0.3%

Portugal0.1%

29

Agenda

Introduction





30

Depreciations for a total amount of € 1,400,000 not directly attributed to underlying companies


31

Comments on unquoted portfolioCartagenia

32

Comments on unquoted portfolioSphere Medical announces intention to float on AIM

33

• 29/6/2011: Clear2Pay acquires Lexcel (US) to widen global footprint and strengthen portfolio of test solutions.

Lexcel Solutions provides payment testing software and services to third-party payment transaction processors, debit and credit networks, financial institutions, retailers, ATM/POS manufacturers and government organizations. Lexcel’s expertise and test solutions along with Clear2Pay’s Integri-branded test product range will create one of the most robust end-to-end testing platforms in the marketplace.

• Clear2Pay has furthermore announced additional client and project wins in the past quarter:

23/8/2011: Clear2Pay announced that EMVCo, the EMV standards body owned by American Express, JCB, MasterCard and Visa, has qualified its Integri EMV Contactless Card Type Approval Level 1 Test Suite, Version 1.0.4.25/8/2011: Clear2Pay announced that it is supporting ITSO, the government-backed, not-for-profit organisation which defines and develops the UK-wide technical specification for smart ticketing, with the implementation of a Certification Centre in the United Kingdom. Clear2Pay will also provide further consultancy services to ITSO and deliver Integri Test Solutions to their vendor community.19/9/2011: Clear2Pay and Systar (Euronext Paris ISIN: FR0000052854-SAR) , the leading Business Activity Monitoring (BAM) solution provider, announce the first in a series of BAM solutions for Clear2Pay customers.

• Clear2Pay was recognised as leading global financial technology player in FinTech100.

12/10/2011: At the Global FinTech 2011 Award ceremony at the BAI Retail Delivery conference in Chicago, Clear2Pay received a recognition for ranking 81st on the list of financial technology companies that were judged according to their global revenues – attesting to the company’s stability and relevance to the industry. With this position Clear2Pay is the highest non-US based newcomer in the ranking with a full 100% revenue base in the financial services sector.

Comments on unquoted portfolioClear2Pay

34

Agenda

Introduction





35

Equity market environmentStrong correction in Q3, most pronounced in Europe

source: Factset, Quest Management

2011 stock market performance Europe versus US

STOXX 600: -18%STOXX Small: -21%DAX: -20%S&P500 in €: -11%

36

Equity market environmentUS economy slowing, but ISM not in « recession territory »

source : ISM, NBER, Bloomberg, Quest Management

ISM Manufacturing Index & US recessions (NBER)

37

Equity market environmentGerman economy: 2000 / 2008 or 1995 / 1998 / 2005 ?

Source: IFO, Bloomberg, Quest Management

German IFO indices

= recession = no recession

38

Equity market environmentOutlook?

Source: Commerzbank 8/9/2011

DAX evolution in bear markets (before/after DAX falls below 200-d average)

39

Portfolio quoted equityNet exposure quoted equities

40

Portfolio quoted equityFinancial strength of portfolio companies further improved

30-Sep-11 ptf. cos. ex biotech companies % NAV

FCF 2011e negative 2 1 Docdata 1%

FCF 2012e negative 1 0

net debt/ebitda 11e > 2.5 0 0

net debt/ebitda 11e > 2 0 0

net debt & FCF 11e negative 0 0

net cash at end 2011e 11 10

total portfolio companies 25 24

31-Dec-10 ptf. cos. ex biotech companies % NAV

FCF 2010e negative 2 1 Phoenix Solar 1%

FCF 2011e negative 1 0 0%

net debt/ebitda 10e > 2.5 1 1 Econocom 1%

net debt/ebitda 10e > 2 2 2 Econocom, KPN 3%

net debt & FCF 11e negative 0 0 0%



31-Dec-09 ptf. cos. ex biotech companies % NAV

FCF 2009e negative 5 2 S2M, Vestas 3%

FCF 2010e negative 4 1 S2M 2%

net debt/ebitda 09 > 2.5 1 1 Centrotec 1%

net debt/ebitda 09 > 2 2 2 Centrotec, TKH 4%

net debt & FCF 10e negative 1 1 S2M 2%



41

Portfolio quoted equity Important transactions 3rd quarter 2011

IN OUT INCREASE REDUCTIONSchaltbau KPN EVS United Drug

Pfeiffer Vacuum

Melexis Roche Unit4 UmicoreWacker Chemie SMA Solar

Hewlett-Packard Melexis AccellAndritz

JULY

AUGUST

SEPTEMBER

42

Portfolio quoted equity Investments in large caps reduced

43

Portfolio quoted equity Large caps KPN, Roche & HP sold with mixed results

source : Bloomberg

44

Portfolio quoted equity Profitable sale of Pfeiffer Vacuum

source : Bloomberg

45

Portfolio quoted equity Introduction Schaltbau

source : Factset

Mkt. Cap. P/ENet debt/

Ebitdam EUR 12m fwd 2011 07/12 2011

Schaltbau 131 7.3 30% 18% 1.7Company

EPS growth

46

Portfolio quoted equity Introduction Melexis

source : Factset

Mkt. Cap. P/ENet debt/

Ebitdam EUR 12m fwd 2011 07/12 2011

Melexis 398 8.1 ‐7% 7% 0.3Company

EPS growth

47

Portfolio quoted equityTop 10 holdings

country sector/activity% NAV 30/9/11

Nemetschek Germany architecture-engineering-construction (AEC) software 4.2%

Imtech Netherlands technical services in electrical & mechanical engineering 4.0%

Arcadis Netherlands engineering consultancy 3.9%

United Drug Ireland healthcare services 3.7%

EVS Belgium digital image-processing systems for TV broadcasters 3.6%

Andritz Austria plant engineering for hydro power, pulp & paper, ... 3.5%

Unit4 Netherlands business software 3.4%

Umicore Belgium materials technology 3.1%

Econocom Belgium IT infrastructure management 2.2%

Teva Israel generic and branded pharmaceuticals 2.1%

48

Portfolio quoted equityQ1-3 quoted portfolio down less than European markets

2011 Q1-3 portfolio company returns in l.c., excluding stocks introduced/removed during 2011

source: Bloomberg, Quest Management, QfG quoted (e) is estimate excluding costs and cash

49

Agenda

Introduction





50

Thank you for your attention!

quest for growth...¾19/9/2011: clear2pay and systar (euronext paris isin: fr0000052854-sar) , the...

Documents