quest for growth...3 2015 h1 results and performance quest for growth key figures: • return on...

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Quest for Growth

Press & Analyst Meeting

24 July 2015

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Agenda

2015 H1 results and performance Quest for Growth

Comments on quoted portfolio

Comments on unquoted portfolio

Questions and Answers

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Key figures: • Return on equity per share: + 28.7 % since 31 December 2014

• Net Asset Value per share at June 30th 2015: € 12.26 (December 31st 2014: € 9,53)

• Net profit for 2015 H1: + € 31,485,404 (+ € 2.73 per share) against a profit of + € 4,041,886 (+ € 0.35 per share)

for 2014 H1

• Share price at June 30th 2015: € 9.271 (December 31st 2014: € 7.611)

• Discount of the share price versus Net Asset Value: 23.38 % at June 30th 2015 (25.98 % at December 31st 2014)

• Prosonix acquired by Circassia Pharmaceuticals

• Cartagenia (CICT) acquired by Agilent Technologies

• Kiadis Pharma listed on Euronext Brussels and on Euronext Amsterdam

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2015 H1 results and performance Quest for Growth Added value per sector per share

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2015 Q2 results and performance Quest for Growth Added value per sector per share

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2015 H1 results and performance Quest for Growth Added value per asset class per share

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2015 Q2 results and performance Quest for Growth Added value per asset class per share

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Quest for Growth NAV Results from 1/01/2005 until 30/06/2015

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Quest for Growth share price 3 year total shareholders return

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Quest for Growth share price Discount to Net Asset Value: 23.38 %

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Quest for Growth share price Portfolio composition and market capitalisation at 30/06/2015

11,80%

51,66%

22,43%

14,11%

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Distribution of the portfolio by sector

at 30/06/2015

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Agenda





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Portfolio quoted Equity market environment

Strong Q1 followed by volatile Q2

source: Factset, Capricorn Venture Partners

Stock markets in Europe (STOXX 600), Small caps (Stoxx Small 200) & USA (S&P 500)

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Economic indicators: Europe improving

ISM Manufacturing Index & US recessions (NBER) IFO index

source : ISM, NBER, IFO, Bloomberg, Capricorn Venture Partners

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Valuations above historical averages

source: Factset, Capricorn Venture Partners

Europe (STOXX 600) and USA (S&P 500) - evolution 12 month forward P/E

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Portfolio quoted Transactions 2015 Q2

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Portfolio quoted Transactions 2015 Q2: sale FMC

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Portfolio quoted Transactions 2015 Q2: sale EVS

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Portfolio quoted Transactions 2015 Q2: sale EVS

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Portfolio quoted Transactions 2015: Zetes

• Specialist in identification of goods and

people

• Benefiting from trends towards more

efficiency, traceability and security

• People ID division with high margin and

significant recurring revenues

• Goods ID division’s growth and margins

are improving

Key figures & ratios (30/6/15)

Mkt. Cap. (m EUR) 158

P/E (12m fwd.) 15.5

EV/EBITDA (2015) 6.9

Dividend yield (2015) 2.4%

EPS growth 2015 37%

EPS growth 10/15 1%

Net debt/Ebitda (2015) 0.0

ROE (2015) 11%

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Portfolio quoted Transactions 2015: CENIT

• Cenit’s main specialisation is product

lifecycle management (PLM) software

• PLM helps manufacturers manage their

products from concept to retirement

• Growing part of own software should

increase margins

• Balance sheet with some 30 million

cash, available for acquisitions

Key figures & ratios (30/6/15)

Mkt. Cap. (m EUR) 128

P/E (12m fwd.) 17.7

EV/EBITDA (2015) 7.7

Dividend yield (2015) 5.9%

EPS growth 2015 9%

EPS growth 10/15 18%

Net debt/Ebitda (2015) -2.7

ROE (2015) 18%

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Portfolio quoted Top 10 holdings

country sector/activityportfolio

entry

% NAV

30/6/15

TKH Group Netherlands telecom, building and industrial solutions 2014 3.9%

Nexus AG Germany software for hospitals 2011 3.4%

Fresenius Germany healthcare products and services 2012 3.4%

Bertrandt Germany engineering and design services 2013 2.9%

Saft Groupe France high performance batteries 2012 2.7%

SAP Germany business software 2012 2.6%

CFE Belgium marine engineering 2015 2.6%

Kendrion Netherlands electromagnetic components 2011 2.5%

Andritz Austria plant engineering 2008 2.5%

UDG Healthcare Ireland healthcare services 2009 2.3%

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Portfolio quoted Valuation of portfolio companies: 12m fwd. P/E = 16.9

12 month forward P/E of portfolio companies at 31/03/2015

source : Factset, Capricorn Venture Partners

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Portfolio quoted Financial strength of portfolio companies

Net debt/EBITDA of portfolio companies at 31/12/2015e

source : Factset, Capricorn Venture Partners

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Portfolio quoted 2015 H1 result

source: Bloomberg, Capricorn Venture Partners

QfG quoted (e) is estimate excluding costs and cash, (I) = return since introduction, (O) return until removal from portfolio

2015-H1 portfolio company returns in l.c., excl. trading positions (held < 3 m)

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Portfolio quoted Performance attribution 2015 H1

Source: Factset, Capricorn Venture Partners

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Agenda





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Portfolio unquoted

Unquoted companies:

ICT

Unquoted companies:

Health-tech

Unquoted companies:

Cleantech

(co-investments)

Venture Funds:

Capricorn Cleantech

Fund

Venture Funds:

Capricorn Health-tech

Fund

Venture funds:

Other funds

Venture Funds:

Capricorn ICT ARKIV

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Portfolio unquoted Value adjustments not assigned to a specific company or

venture capital fund

In the unquoted portfolio value adjustments for a total of + € 2,258,240 were booked in a separate

line. These value adjustments were booked mainly out of fear that certain portfolio companies,

almost in need of refinancing, will have to go to the market with a lower valuation because of the

deteriorating economic situation and the more difficult funding climate that goes with it.

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Portfolio unquoted Prosonix acquired by Circassia Pharmaceuticals

Circassia Pharmaceuticals acquired 100% of the shares of Prosonix. Quest for Growth invested in the Series A round of

Prosonix together with Entrepreneurs Fund and Solon Ventures. Prosonix was the largest non-quoted investment in the Quest

for Growth portfolio valued at € 4.4 million and representing about 3.4% of the NAV at 30 April 2015.

The acquisition consists of:

a cash payment at the closing of the transaction and

a substantial milestone payment

Quest for Growth expects a total (realised and unrealised) positive impact on its NAV of about € 10 million (€ 0.86 per share).

This valuation takes into account a discount on the milestone payment and on the amount that will be kept in escrow.

This ranks the investment in Prosonix among the most profitable participations in non-quoted companies in the history of

Quest for Growth. The transaction follows on the heels of two other successful exits in the non-quoted portfolio of Quest for

Growth in the last few months. Quest for Growth sold its participation in Clear2Pay in the second half of 2014 and announced

last week the sale of Cartagenia (through its participation in the Capricorn ICT Arkiv).

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Portfolio unquoted Kiadis Pharma IPO on Euronext Brussels and on Euronext Amsterdam

Kiadis Pharma has raised € 32.7 million with its IPO on Euronext Amsterdam and Euronext Brussels at an introduction price

of € 12.50 per share. The share was listed on 2 July.

Quest for Growth first invested in Kiadis Pharma in 2007 and, since then, has participated in a number of follow-on

investment rounds. Kiadis Pharma was one of the largest unlisted holdings in the Quest for Growth portfolio.

The existing shareholders have agreed not to sell any shares within 12 months following the IPO (six months’ “hard lock-up”

+ six months’ “soft lock-up”).

After the first quotation, Quest for Growth will record these shares in its books with a discount of 18% compared to the

market price, in accordance with its valuation rules. From the first month following the IPO, the discount will be reduced

by 1.5% per month.

Prior to the IPO, Quest for Growth held 508,799 shares of Kiadis pharma, which had an approximate value of € 3.1 million.

Based on the IPO price and the discount referred to above, the value of the Kiadis Pharma shares in Quest for Growth’s

portfolio increased by € 2.1 million, or € 0.18 per Quest for Growth share. This appreciation was included in the net asset

value calculation as at 30 June 2015, which was published on Thursday, 2 July.

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Portfolio unquoted Capricorn Health-tech fund invests in €750,000 in Confo Therapeutics

Confo Therapeutics has been founded as a VIB spin out by VIB and Capricorn Health-tech Fund (CHF). The company will

exploit the ConFoBody technology developed in the laboratory of Prof Jan Steyaert (VIB/VUB). The technology has been

reflected in a number of peer reviewed publications, including five papers in Nature.

The scientific fundamentals of the company are stellar. The technology developed by Prof Steyaert has the potential to

become the standard in GPCR (G-protein coupled receptor) drug discovery. It allows to screen on active confirmations of

drug targets, which is a substantial advantage to existing platforms. There might be also an opportunity to address orphan

GPCRs as well as non-GPCRs drug targets using the same approach.

GPCRs are largely viewed as one of the most attractive drug target class. Six out of twenty bestselling drugs target GPCRs,

generating over € 60 billion in sales annually. A significant number of GPCRs targets are yet to be commercially exploited.

Confo Therapeutics will establish internal drug discovery programmes as well as a limited number of value creating

partnerships with established corporate partners. Members of the Steyaert lab have already initiated collaborations with

large biopharmaceutical companies, including Novo Nordisk, Roche and UCB. The company will build further on this

momentum.

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Portfolio unquoted Cartagenia acquired by Agilent Technologies

Agilent Technologies Inc. acquired 100% of the shares of Cartagenia.

Cartagenia, a KULeuven spin-off, supplies diagnostic software, database systems, and related services to genetic labs

and clinicians, enabling them to perform clinically relevant genetic analyses quickly and efficiently, and offer patients

and carers high-quality genetic interpretation and counselling.

Agilent (NYSE: A) is a global leader in life sciences, diagnostics and applied chemical markets.

Quest for Growth is an indirect shareholder of Cartagenia through its participation in the Capricorn ICT Arkiv fund.

Quest for Growth expects a positive impact on its net asset value of approximately 3%.

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Financial calendar 2015

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Agenda





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Thank you for your attention!

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