Quest for Growth...3 2016 FY results and performance Quest for Growth Key figures: • Return on...

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Quest for Growth

Press & Analyst Meeting

27 January 2017

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Agenda

2016 FY 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: - 0.30 % since 31 December 2015

• Net asset value per share at 31 December 2016: € 8.91 (31 December 2015: € 10.81)

• Net result for the fiscal year: - € 425,236 (- € 0.03 per share) against a profit of + € 37,899,036 (+ € 3.29 per share) for the

previous fiscal year

• Successful capital increase by issuance of 3,626,019 new ordinary shares at € 7.00 per ordinary share

• Issued capital increases with € 25,382,133 to € 135,130,875 (€ 8.9160 per share)

• Share price at 31 December 2016: € 7.649 (31 December 2015: € 11.40)

• Discount of the share price versus net asset value: 14.11 % at 31 December 2016 (11.04 % at 31 December 2015)

• The board proposes to the AGM to transfer the loss to the next fiscal year

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2016 Q4 results and performance Quest for Growth Added value per sector per share

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2016 FY results and performance Quest for Growth Added value per sector per share

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2016 Q4 results and performance Quest for Growth Added value per asset class per share

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2016 FY results and performance Quest for Growth Added value per asset class per share

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Quest for Growth NAV Results from 1/01/2006 until 31/12/2016

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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: 14 %

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Quest for Growth share price Portfolio composition and market capitalisation at 31/12/2016

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Distribution of the portfolio by sector

at 31/12/2016

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Agenda





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Portfolio quoted Equity market environment

Equity markets in 2016

source: Bloomberg

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

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Equity markets in 2016

source: Bloomberg

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Economic indicators

ISM Manufacturing Index & US recessions (NBER) IFO index

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

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Valuation

source: Factset, Capricorn Venture Partners

STOXX Europe 600 12 month forward P/E

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Portfolio quoted Transactions 2016 Q4

IN OUT INCREASE REDUCTION

Gerresheimer Melexis

Bertrandt

Gerresheimer Nexus

Umicore

EVS Kiadis Pharma

NOVEMBER

DECEMBER

OCTOBER

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Portfolio quoted Transactions 2016

IN OUT

Init

Nibe

Jensen-Group

Kingspan

Corbion

Ablynx

Norma Group

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

IN OUT

Kuka Saft Groupe

Kendrion

Schaltbau

EVS

NOVEMBER

DECEMBER

JULY

AUGUST

SEPTEMBER

OCTOBER

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Portfolio quoted Transactions 2016: Introduction Jensen Group

source : Factset, Capricorn Venture Partners

• Global leader in heavy-duty laundry

equipment

• Products targeting to reduce water &

energy consumption

• Growth thanks to need for automation,

combined with market share gains

• Strong balance sheet

Key figures & ratios (31/12/16)

Mkt. Cap. (m EUR) 270

P/E (12m fwd.) 13.9

EV/EBITDA (2016) 9.2

Dividend yield (2016) 1.0%

EPS growth 2016 3%

EPS growth 11/16 30%

Net debt/Ebitda (2016) -0.2

ROE (2016) 18%

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Portfolio quoted Transactions 2016: Introduction Kingspan


• Building materials company focused on

insulation materials

• Growing market, driven by tighter

energy efficiency regulations

• Excellent M&A track-record

• Strong cash flow generation



P/E (12m fwd.) 17.0

EV/EBITDA (2016) 12.2


EPS growth 2016 31%


Net debt/Ebitda (2016) 1.0

ROE (2016) 17%

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Portfolio quoted Transactions 2016: Introduction Corbion


• Dominant worldwide market position in

lactic acid

• Stable growth in food ingredients

• Stronger growth biochemicals, also

helping to improve group margins

• Potential in bioplastics (PLA) not

discounted in the stock price



P/E (12m fwd.) 17.6



EPS growth 2016 47%



ROE (2016) 21%

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Portfolio quoted Transactions 2016: Introduction Jensen Group


• Biotechnology company with strong

antibody technology platform

• Extensive clinical pipeline

• Proven safety and efficacy of its

products through multiple clinical trials

• Healthy cash position



P/E (12m fwd.) -

EV/EBITDA (2016) -


EPS growth 2016 -

EPS growth 11/16 -

Net debt/Ebitda (2016) -

ROE (2016) -

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Portfolio quoted Transactions 2016: Introduction Norma Group


• Clear market leader in Europe for

connection technology

• Emission controls drive growth for its

products

• Diversification into strongly growing

water management area

• Strong margins thanks to niche products

with low unit cost



P/E (12m fwd.) 13.8



EPS growth 2016 0%



ROE (2016) 19%

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Portfolio quoted Transactions 2016: Introduction EVS


• Clear market leader in Europe for

connection technology

• Emission controls drive growth for its

products

• Diversification into strongly growing

water management area

• Strong margins thanks to niche products

with low unit cost



P/E (12m fwd.) 17.0



EPS growth 2016 36%

EPS growth 11/16 0%

Net debt/Ebitda (2016) -0.4

ROE (2016) 33%

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Portfolio quoted Top 10 holdings

country sector/activityportfolio

entry

% NAV

31/12/16

TKH Group Netherlands telecom, building and industrial solutions 2014 4.5%

Pharmagest France software for pharmacies 2010 4.1%

Zetes Belgium identification technology 2015 3.6%

Andritz Austria plant engineering 2008 3.4%

Gerresheimer Germany pharma packaging 2011 3.4%

Nexus AG Germany software for hospitals 2011 3.3%

Fresenius Germany healthcare products and services 2012 3.3%

SAP Germany business software 2012 3.3%

CFE Belgium marine engineering 2015 3.2%

Umicore Belgium materials technology 2006 2.9%

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Portfolio quoted Valuation of portfolio companies: 12m fwd. P/E = 18.8

12 month forward P/E of portfolio companies at 31/12/2016


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Portfolio quoted Financial Strength

Net debt/EBITDA 2016e of portfolio companies at 31/12/2016


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Portfolio quoted 2016 result

Source: Bloomberg, Capricorn Venture Partners

QfG quoted (e) is estimate excluding costs and cash, excluding Kiadis since 1/7/2016

(I) = return since introduction, (O) return until removal from portfolio

2016 portfolio company returns in local currency

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Portfolio quoted Performance attribution 2016

Source: Factset, Capricorn Venture Partners

Stock Contrib.% Stock Contrib.%

1 Pharmagest Interactive SA 3.1 1 Kiadis Pharma NV -2.2

2 Umicore 2.4 2 Schaltbau Holding AG -1.2

3 Saft Groupe SA 1.7 3 Compagnie d'Entreprises CFE SA -0.6

4 Zetes Industries NV 1.6 4 Ablynx nv -0.6

5 Melexis NV 1.4 5 Bertrandt AG -0.5

TOP POSITIVE CONTRIBUTIONS TOP NEGATIVE CONTRIBUTIONS

Estimated gross (excl. fees & cash) performance QfG Quoted Portfolio: 8%

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Agenda





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Portfolio unquoted

Unquoted companies:

ICT

Unquoted companies:

Health-tech (co-

investments)

Unquoted companies:

Cleantech

(co-investments)

Venture Funds:

Capricorn Cleantech

Fund

Venture Funds:

Capricorn Health-tech

Fund

Venture Funds:

Capricorn Sustainable Chemistry

Fund

Venture funds:

Other funds

Venture Funds:

Capricorn ICT ARKIV

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Portfolio unquoted Capricorn ICT Fund - Investment in Noona

Noona Healthcare Raises €1,5 Million in Seed Funding – Brings Finnish Cancer Care Expertise to the

Global Market in Digital Format.

Noona Healthcare is a cloud-based oncology platform for patient-reported outcomes.

The founders of the company created a service that supports cancer patients’ individual needs and

enables secure access to their care team, regardless of time and place. The more Noona learns about

the patient’s symptoms, lifestyle and wellbeing, the better it becomes in preventing unwanted

treatment consequences, such as emergency room visits or paralysis. In addition, Noona provides

researchers unique data on the real life safety and efficacy of new novel treatments in different

patient groups.

The main partners of the company are Stanford Medicine and Helsinki University Cancer Center.

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Portfolio unquoted Capricorn ICT Fund – Indigo

INDIGO ANNOUNCES SUCCESSFUL SERIES A FINANCING ROUND

Spin-off from UGent and imec is launched to develop the next generation needle-free glucose

sensors, paving way to a paradigm shift in diabetes management.

Indigo Diabetes NV (Indigo), a spin-off from Ghent University (UGent) and imec, announced the

successful closure of a 7 million Euros series-A financing round. The funding is provided by an

international investment syndicate led by Thuja Capital Healthcare Fund II (The Netherlands) and

PMV (Belgium), and includes Sensinnovat, Parana Management Corp, Qbic Arkiv Fund, Fidimec, SOFI,

Manuardeo and Capricorn ICT Arkiv as co-investors.

Indigo is developing a needle-free glucose sensor by exploiting groundbreaking photonics

technologies.

The company is based in Ghent, Belgium, where it benefits from access to Ghent University and more

specifically the Photonics Research Group and the NB-Photonics consortium, a leading European

academic consortium in the field of photonics, with first-class clean room and laboratory facilities.

Access to this multi-disciplinary environment and to the cleanrooms of imec will play an important

role in Indigo’s future development.

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Portfolio unquoted Capricorn Sustainable Chemistry Fund

Quest for Growth commits € 15 million to the Capricorn Sustainable Chemistry Fund (CSCF)

Quest for Growth committed € 15 million to the Capricorn Sustainable Chemistry Fund (CSCF). Of that

commitment € 3.75 million will be invested immediately and the remaining amount will be called

over the life of CSCF. Other key investors in this first closing are ARKimedes-Fonds II

(ParticipatieMaatschappij Vlaanderen), FPIM (Federale Participatie en Investeringsmaatschappij),

SRIW (Société Régionale d’Investissement de Wallonie), family offices and entrepreneurs.

The objective of the Fund is to create shareholder value through financial return combined with the

Sustainability Impact of the planned investments. CSCF offers a unique opportunity to investors to

contribute to a more sustainable future through innovative new technologies, based on

renewable/non-fossil resources that provide performance and value, while protecting and enhancing

human health and the environment.

Sustainable chemistry uses natural resources and processes to make products that have a reduced

carbon footprint, and a better environmental profile. As such the Capricorn Sustainable Chemistry

Fund will capture growing opportunities emerging from a wave of innovation across the value chain,

from alternative feedstocks to more sustainable solutions for everyday products in food & feed, fibers

& fuels, and functional materials for a broad range of applications.

Capricorn Sustainable Chemistry Fund is off to a strong start, with € 50 million in committed capital,

and additional commitments and indications of significant interest. The fund will extend its investor

base in the next 12 months, and expects a final closing in the € 100-150 million range.

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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 - € 5,985,793 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.

Total Financial Assets - Shares € 126.144.619 93,46%

Change in valuation in unquoted companies and venture funds € -5.985.793 -4,43%

Total Financial Assets – Shares after depreciation € 120.158.826 89,03%

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Agenda

2016 H1 results and performance Quest for Growth




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Financial calendar 2016

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Thank you for your attention!

Quest for Growth...3 2016 FY results and performance Quest for Growth Key figures: • Return on...

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