quest for growth...3 2017 fy results and performance quest for growth key facts: • quest for...

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Quest for Growth

Press & Analyst Meeting26 January 2018

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Agenda

2017 FY results and performance Quest for Growth

Comments on quoted portfolio

Comments on unquoted portfolio

Stock dividend

Questions and Answers

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Key facts:

• Quest for Growth ends 2017 with a profit of 27mm – shareholders will have the possibility to opt for a stock dividend• Return on equity per share: 20.4 % since 31 December 2016• Net asset value per share at 31 December 2017: € 8.91 (31 December 2016: € 8.91)• Net profit for the fiscal year: + € 27,389,776 (+ € 1.55 per ordinary per share) against a profit (based on IFRS) of + € 538,144 • (+ € 0.04 per ordinary share) for the previous fiscal year • Share price at 31 December 2017: € 8.811 (31 December 2016: € 7.649)• Discount of the share price versus net asset value: 17.75 % at 31 December 2017 (14.11 % at 31 December 2016)• Amendment investment policy allows direct investments in unlisted companies again• New investments in unlisted companies: Sensolus, NGDATA, Bluebee and HalioDX• The board of directors will propose a gross dividend of € 1.55 gross per ordinary share (€ 1.52 net) at the AGM • Shareholders will have the choice between a payment in cash, new ordinary shares of a combination of both, payment in cash or

ordinary shares

Beurskoers

31/12/2017 31/12/2017 30/11/2017 31/12/2016

8,811 EUR 10,71 EUR 10,66 EUR 8,91 EUR

Aantal aandelen 15.155.969 15.155.969 15.155.969

Intrinsieke waarde

Bron: Berekening door Capricorn Venture Partners NVDiscount van de beurskoers ten opzichte van de intrinsieke waarde: 17,75%

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2017 Q4 results and performance Quest for GrowthAdded value per sector per share

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2017 FY results and performance Quest for GrowthAdded value per sector per share

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2017 Q4 results and performance Quest for GrowthAdded value per asset class per share

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2017 FY results and performance Quest for GrowthAdded value per asset class per share

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Quest for Growth NAVResults from 1/01/2007 until 31/12/2017

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Quest for Growth share price3 year total shareholders return

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Quest for Growth share priceDiscount to Net Asset Value: 17.75 %

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Discount Quest for Growth1 January 2014 ‐ 31 December 2017

NAV Price

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Quest for Growth share pricePortfolio composition and market capitalisation at 31/12/2017

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Distribution of the portfolio by sectorat 31/12/2017

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Agenda




Stock dividend


14source: Bloomberg

Stock markets in Europe & USA

Portfolio quotedEquity market environmentEquity markets in 2017

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Portfolio quotedEquity market environmentEquity markets in 2017

source: Bloomberg

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Portfolio quotedEquity market environmentEconomic indicators

ISM Manufacturing Index & US recessions (NBER) IFO index

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

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Portfolio quotedEquity market environmentValuation

source: Factset, Capricorn Venture Partners

STOXX Europe 600 12 month forward P/E

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Portfolio quotedTransactions 2017

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Portfolio quotedTransactions 2017 Q4 – Introduction Accell Group

Accell Group is one of Europe's largest manufacturers of bicycles. Brands include Batavus (NL), Ghost (DE), Haibike (DE), Koga (NL), Lapierre (FR), Loekie (NL), Raleigh and Diamondback (UK, US, Canada), Redline (US), Sparta (NL), Tunturi (FI), Winora (DE) and XLC (international). The group also sells bicycle parts and accessories. The group was a pioneer in the development of electrically assisted bikes (e-bikes). Accell Group occupies a strong position in the middle and higher segments of the market. The bicycles developed and produced by Accell Group are mainly sold through the bicycle retail specialists channel.

Key figures & ratios 31/12/17Mkt. Cap. (m EUR) 615

P/E (12m fwd.) 15.0FCF yield (2017) 5.6%Dividend yield (2017) 2.7%

EPS growth 2017 -14%EPS growth 12/17 3%Net debt/Ebitda (2017) 2.4ROE (2017) 10%

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Portfolio quotedTransactions 2017 Q4 – Introduction Exel Industries

Exel Industries SA is a France-based company engaged in the design, manufacture and sale of precision spraying equipment for three markets: agriculture, industry and gardening. The Company has various subsidiaries, including Kremlin Rexson SA, TecnomaTechnologies SAS, Caruelle-Nicolas SAS, PrecicultureSAS, Moreau SAS and Herriau SAS, among others.



EPS growth 2017 35%EPS growth 12/17 12%Net debt/Ebitda (2017) 0.8ROE (2017) 14%

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Portfolio quotedTransactions 2017 Q4 – Datron

Datron AG develops and manufactures equipment and tools in the field of high-speed milling of aluminiumand plastics and neighbouring technology such as dispensing machines. Their products cover a wide range of industrial production processes as well as applications in dental technology. The company was founded in 1969 and went IPO in 2011. Datron is headquartered in Mühltal, Germany.



EPS growth 2017 75%EPS growth 12/17 12%Net debt/Ebitda (2017) -1.2ROE (2017) 12%

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Portfolio quotedTop 10 holdings

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Portfolio quotedValuation of portfolio companies: 12m fwd. P/E = 19.6

12 month forward P/E of portfolio companies at 31/12/2017

source : Factset, Capricorn Venture Partners

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Portfolio quoted2017 result

Source: Bloomberg, Capricorn Venture PartnersQfG quoted (e) is estimate excluding costs and cash

Portfolio company returns in local currency

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Portfolio quotedPerformance attribution 2017

Source: Factset, Capricorn Venture Partners

Stock Contrib.% Stock Contrib.%

1 technotrans AG 4.0 1 Axway Software SA -0.7

2 TKH Group N.V. Cert 2.7 2 EVS Broadcast Equipment SA -0.6

3 NEXUS AG 1.9 3 Fresenius SE & Co. KGaA -0.4

4 NORMA Group SE 1.8 4 Accell Group N.V. -0.4

5 Pharmagest Interactive SA 1.7 5 Kiadis Pharma NV -0.3

Estimated gross (excl. fees & cash) performance QfG Quoted Portfolio: 23%

TOP POSITIVE CONTRIBUTIONS TOP NEGATIVE CONTRIBUTIONS

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Agenda




Stock dividend


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Portfolio unquoted

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Portfolio unquoted Direct investment: HALIODX - € 999,978

HalioDx is an immuno-oncology diagnostic company providing oncologists with first-in-class Immune-based diagnostic products and services to guide cancer care and contribute to precision medicine in the era of immunooncology and combination therapies.

Immunoscore® proprietary technology, integrates immunohistochemistry combined with advanced imaging analysis enabling extraction of spatially-organized tissue molecular information. Immunoscore® is a diagnostic solution for many cancers, as immune response to tumor is a key hallmark of disease progression. HalioDxcollaborates with renowned international clinical groups to support clinical utility and ensure rigorous performance validation of its assays in selected cancer indications.

HalioDx also develops assays such as Halioseek® and Immunosign® to help stratifying patients for immunotherapies.

HalioDx has an experienced team of more than 130 employees, a CLIA laboratory and compliant facilities to develop, manufacture, register and market in vitro diagnostic (IVD) products. HalioDx executes biomarker studies and companion diagnostic assay development in conformity with regulations and in partnership with biopharmaceutical companies. Based in Marseille, France, the company co-founded the European immunology cluster Marseille Immunopôle (MI).

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Portfolio unquoted Co-investment: NGDATA - € 838,056

NGDATA® helps data-rich companies in financial services, telecom, utilities, hospitality, etc., to drive connected experiences. The company’s next-generation customer data platform, Lily™, puts people at the center of every business via Lily’s Customer DNA, which continuously learns from behavior to deliver compelling experiences for companies such as Belfius Bank, Innogy and Telenet. NGDATA is headquartered in Gent, Belgium and has offices in the United States, Europe and Asia-Pacific. For more information, please visit www.NGDATA.com.

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Portfolio unquoted Co-investment: Bluebee - € 500,070

Bluebee offers a secure global bio-informatics platform to process, analyze, share and store genomics data. Through a private cloud service, Bluebee supports users in clinical diagnostics, therapeutics and research with advanced analytics for genomic data driven medicine that will fuel the future of genomic discovery. Designed for cross-functional teams of clinicians and life science researchers the Bluebee platform effectively centralizes and manages genomics data processes and storage. Bluebee’s multi-layered security is designed to meet both specific organizational and regulatory data protection requirements when analyzing and storing research or clinical grade data. Local data processing is guaranteed via “Data Residency Control” in state-of-the-art data centers. The service is available across all major European countries and US cities, as well as in Canada and Asia Pacific.

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Portfolio unquoted CHF invests in Sensolus

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Portfolio unquoted CSCF invests in Virovet

ViroVet is a pioneering company dedicated to the development of disruptive and innovative technologies forthe control of viral diseases in livestock, with antiviral drugs for respiratory disease complexes and innovativevaccines for viral infections. The livestock industry is a 100+ billion-euro industry. Viral diseases costproducers billions every year in losses and threaten the world supply of animal protein.

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Investments in Venture FundsCurrency

Last Valuation

Date Valuation in €

in % of

Net Asset

Value

CAPRICORN VENTURE PARTNERS

CAPRICORN CLEANTECH FUND € 31/12/2017 4.398.479 2,71%

CAPRICORN HEALTH-TECH FUND € 31/12/2017 9.219.032 5,68%

CAPRICORN ICT ARKIV € 31/12/2017 6.682.725 4,12%

CAPRICORN SUSTAINABLE CHEMISTRY FUND € 31/12/2017 3.392.352 2,09%

THIRD PARTY FUNDS

CARLYLE EUROPE TECHNOLOGY PARTNERS I € 30/09/2017 7.225 0,00%

CARLYLE EUROPE TECHNOLOGY PARTNERS II € 30/09/2017 772.178 0,48%

CETP LP CO-INVESTMENT £ 30/09/2017 22.389 0,01%

LIFE SCIENCES PARTNERS III € 30/09/2017 514.000 0,32%

LIFE SCIENCES PARTNERS IV € 30/09/2017 1.604.302 0,99%

SCHRODER VENTURES LSF II $ 31/12/2016 47.130 0,03%

VENTECH CAPITAL 2 € 30/09/2017 43.413 0,03%

VERTEX III $ 30/09/2017 722.662 0,45%

27.425.887 16,89%

Portfolio unquoted

Due to the implementation of IFRS in Quest for Growth, Capricorn funds are valued at the reporting date of the Quest for Growth. Impairments to the fund value are no longer reflected in a separate line “change in valuation in unquoted companies and venture funds”. This further enhances transparency in reports.

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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 - € 3,606,713 are booked in a separate line. These value adjustments are booked to reflect uncertainties at certain portfolio companies with respect to future rounds of financing.

Total Financial Assets - Shares € 144.793.629 89,18%Change in valuation in unquoted companies € -3.606.713 -2,22%Total Financial Assets – Shares after depreciation € 141.186.916 86,96%

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Agenda




Stock dividend


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Financial calendar 2018Optional dividend in sharesTerms of the offer

Proposal to the extraordinary general assembly to issue a stock dividend. Shareholders will have

the choice between a payment in cash, new ordinary shares of a combination of both, payment

in cash or ordinary shares 1

• Issuance of ordinary shares

• Preference shares will have a limited right to participate

• issue price:

• Average close price of reference period

• minus gross dividend

• minus discount to be decided before start of the operation

• Investors will have the choice between:

• Dividend in cash

• Dividend in shares

• Combination of both, dividend in cash and dividend in shares

1 The capital increase regarding the stock option which will be proposed to the extraordinary general assembly is also subject to approval by the FSMA

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Financial calendar 2018Optional dividend in sharesTerms of the offer

Proposal to the extraordinary general assembly to issue a stock dividend. Shareholders will have

the choice between a payment in cash, new ordinary shares of a combination of both, payment

in cash or ordinary shares 1

Preliminary timeline:

• EGM 1 minimum attendance quorum required 3/03/2018

• AGM Allocation of result

• EGM 2 no minimum attendance quorum required 29/03/2018

• Ex-coupon date: 3/04/2018

• Record date: 4/04/2018

• Option period: 3/04/2018 – 13/04/2018

• Payment date or attribution shares: 17/04/2018

• Listing of the new shares: 17/04/2018

1 The capital increase regarding the stock option which will be proposed to the extraordinary general assembly is

also subject to approval by the FSMA

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Financial calendar 2018

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Agenda




Keuzedividend


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Thank you for your attention!

quest for growth...3 2017 fy results and performance quest for growth key facts: • quest for...

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