Quest for Growth. Press & Analyst Meeting. 26 October 2012

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1 Quest for Growth Press & Analyst Meeting 26 October

2 Agenda Q results and performance Quest for Growth Comments on quoted portfolio Comments on unquoted portfolio Questions and Answers 2

3 Q results and performance Quest for Growth Beurskoers Intrinsieke waarde 30/09/ /09/ /06/ /12/2011 5,34 EUR 8,93 EUR 8,40 EUR 7,90 EUR Aantal aandelen Discount van de beursko ers ten opzichte van de intrinsieke waarde: 40,22% Bron: Berekening door Capricorn Venture Partners NV Key figures: Return on equity per share: + 13 % since 31 December Net Asset Value per share at September 30 th 2012: 8.93 (December 31 st 2011: 7.90). Net profit for the year at September 30 th 2012: + 11,890,466 ( per share) against loss of 12,355,901 ( per share) for the same period last year. Share price at September 30 th 2012: 5.34 (September 30 th 2011: 5.00) or a increase of 6.8 % Discount of the share price versus Net Asset Value: % at September 30 th 2012 (37.40 % at September 30 th 2011). 3

4 YtD 30/09/2012 results and performance Quest for Growth Added value per sector per share 4

5 YtD 30/09/2012 results and performance Quest for Growth Added value per asset class per share 5

6 Quest for Growth NAV Results from 1/01/2005 until 30/09/2012 6

7 Quest for Growth share price 3 year total shareholders return 7

8 Quest for Growth share price Discount to Net Asset Value: 40,22 % 8

9 Quest for Growth share price Portfolio composition and market capitalisation at 30/09/2012 9

10 Quest for Growth share price Net exposure quoted equities 100% 90% 80% 70% % NAV 60% 50% 40% 30% 61% 61% 62% 62% 58% 60% 59% 60% 59% 55% 56% 59% 60% 61% 61% 63% 62% 61% 62% 59% 56% 52% 53% 53% 54% 54% 55% 54% 54% 54% 54% 56% 56% 58% 20% 10% 0% net exposure quoted hedged (or cash bid) cash (incl. CP) unquoted 10

11 Distribution of the portfolio by sector at 30/09/2012 Cash & other net assets 4.4% Semiconductors 2.6% Software & Services 20.4% Electrical & Engineering 19.5% Funds & Diversified Companies 15.6% Materials 3.3% Health Care Equipment & Services 11.7% Other sectors 3.9% Pharma & Biotech 8.8% Technology Hardware 9.9% 11

12 Agenda Q results and performance Quest for Growth Comments on quoted portfolio Comments on unquoted portfolio Questions and Answers 12

13 Portfolio quoted Equity market environment: economic outlook is weakening ISM Manufacturing Index & US recessions (NBER) IFO index source : ISM, NBER, IFO, Bloomberg, Capricorn Venture Partners 13

14 Portfolio quoted Top 10 holdings country sector/activity % NAV 30/9/12 Andritz Austria plant engineering for hydro power, pulp & paper, % EVS Belgium digital image-processing systems for TV broadcasters 4.2% Imtech Netherlands technical services 3.9% Arcadis Netherlands engineering consultancy 3.8% Nemetschek Germany building software 3.7% Econocom Belgium IT infrastructure management 3.6% United Drug Ireland healthcare services 3.6% Umicore Belgium materials technology 3.3% SAP Germany business software 2.5% Gerresheimer Germany glass and plastic products for pharma packaging 2.4% 14

15 Portfolio quoted Transactions 2012 Q3 IN OUT INCREASE REDUCTION LPKF United Drug Nemetschek JULY Unit4 LPKF United Drug AUGUST SEPTEMBER Fresenius SE Arcadis United Drug Tomra LPKF 15

16 Portfolio quoted Removed in Q

17 Portfolio quoted Public offer on Transics by Tavares Quest for Growth tenders Transics shares (250,000 shares of approx. 3% of shares outstanding) investment case: + business model with strong recurring sales (> 50% of revenues) + strong cash generation resulting in net cash position + possible interest of industrial buyers in coming years + valuation not very high and not containing a takeover premium - margins and profitability below earlier expectations - company s communication efforts could deteriorate further - share liquidity is very low and expected to decline further - attractive alternative investment ideas available at similar valuations 17

18 Portfolio quoted Introduction in Q3: LPKF World leader in a number of areas in laser material processing Bringing disruptive innovations, replacing traditional technologies Strong financials: high margins, high return on equity Net debt/ Mkt. Ca p. P/E EPS growth Ebitda m EUR 12m fwd / Company LPKF % 23%

19 Portfolio quoted Introduction in Q3: Tomra Global market share of approx. 65% in reverse vending machines High recurring sales in collection technology Growth potential in sorting technology Mkt. Cap. P/E EPS growth Net debt/ Ebitda Company m EUR 12m fwd / Tomra % 11%

20 Portfolio quoted Introduction in Q3: Fresenius Activities in different defensive growth businesses in healthcare World #1 in dialysis care and parenteral nutrition, #2 in IV generics Strong management track-record Mkt. Cap. P/E EPS growth Net debt/ Ebitda Company m EUR 12m fwd / Fresenius % 15%

21 Portfolio quoted Increasing focus on global leaders IN OUT 21

22 Portfolio quoted Valuations of portfolio companies are still attractive 12 month forward P/E of portfolio companies at 30/09/2012 (excl. Sphere Medical) source: Factset, Capricorn Venture Partners 22

23 Portfolio quoted A very good start in 2012 for the quoted stock portfolio 2012 Q1-3 portfolio company returns in l.c., excl. stocks introduced/removed during 2012 source : Bloomberg, Capricorn Venture Partners, QfG quoted (e) is estimate excluding costs and cash 23

24 Agenda Q results and performance Quest for Growth Comments on quoted portfolio Comments on unquoted portfolio Questions and Answers 24

25 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 25

26 Portfolio unquoted Value adjustments not assigned to a specific company Total Financial Assets - Shares 97,850, % Depreciation unquoted companies -3,690, % Total Financial Assets Shares after depreciation 94,159, % In the unquoted portfolio value adjustments for a total of million 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. 26

27 Portfolio unquoted Events Q In August Mapper Lithography announced an investment round of 80 million, led by the Russian group Rusnano. Quest for Growth had its loan notes, previously written off, converted into equity. Given both the technical and commercial progress and the improved financial situation of Mapper Lithography, unrealised capital losses booked on this investment, have been withdrawn. 27

28 Portfolio unquoted Events Q MainStay Medical is developing a ground breaking treatment for Chronic Axial Low Back Pain through neuro-rehabilitation using an implantable pulse generator for the stimulation of the multifidus muscle. The World Health Organization reports that low back pain is the most prevalent of musculoskeletal conditions, and affects nearly everyone at some point in time. Low back pain is the number one cause of lost working days in the developed world, with a staggering 7.5 million people in the US with chronic back pain at any time, and similar numbers for Europe. The cost to society of lost working days and health care treatment is enormous. For many of these people, low back pain results from malfunction of muscles responsible for spine stability. Mainstay Medical has developed a novel approach using an implantable device like a "pacemaker for the back" to restore spine stability to ameliorate pain and allow return to work. The Capricorn Health-tech Fund invested in the series B round which was led by the Irish venture capital group Fountain Healthcare Partners. The series B round was oversubscribed and amounted to 15.3 million. This funding will advance the on-going development of Mainstay Medical's disruptive new medical device for the treatment of patients with chronic non-specific low back pain. MainStay Medical is a US based company that is in the process of relocating to Ireland. 28

29 Quest for Growth Shareholders structure Market 63.07% Board members 6.24% KBC Asset Management 3.55% Belfius Bank 12.09% Financial & Investment Management Group, Ltd 15.04% 29

30 Financial calendar

31 Agenda Introduction Q results and performance Quest for Growth Comments on quoted portfolio Comments on unquoted portfolio Questions and Answers 31

32 Thank you for your attention! 32