Quest for Growth
Press & Analyst Meeting
27 January 2017
1
Agenda
 2016 FY results and performance Quest for Growth
 Comments on quoted portfolio
 Comments on unquoted portfolio
 Questions and Answers
2
2016 FY results and performance Quest for Growth
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
3
2016 Q4 results and performance Quest for Growth
Added value per sector per share
4
2016 FY results and performance Quest for Growth
Added value per sector per share
5
2016 Q4 results and performance Quest for Growth
Added value per asset class per share
6
2016 FY results and performance Quest for Growth
Added value per asset class per share
7
Quest for Growth NAV
Results from 1/01/2006 until 31/12/2016
8
Quest for Growth share price
3 year total shareholders return
9
Quest for Growth share price
Discount to Net Asset Value: 14 %
10
Quest for Growth share price
Portfolio composition and market capitalisation at 31/12/2016
11
Distribution of the portfolio by sector
at 31/12/2016
12
Agenda
 2016 FY results and performance Quest for Growth
 Comments on quoted portfolio
 Comments on unquoted portfolio
 Questions and Answers
13
Portfolio quoted
Equity market environment
Equity markets in 2016
Stock markets in Europe (STOXX 600), Small caps (Stoxx Small 200) & USA (S&P 500)
source: Bloomberg
14
Portfolio quoted
Equity market environment
Equity markets in 2016
source: Bloomberg
15
Portfolio quoted
Equity market environment
Economic indicators
ISM Manufacturing Index & US recessions (NBER)
IFO index
source : ISM, NBER, IFO, Bloomberg, Capricorn Venture Partners
16
Portfolio quoted
Equity market environment
Valuation
STOXX Europe 600 12 month forward P/E
source: Factset, Capricorn Venture Partners
17
Portfolio quoted
Transactions 2016 Q4
IN
OUT
INCREASE
Gerresheimer
Bertrandt
REDUCTION
Melexis
Gerresheimer
Nexus
Umicore
OCTOBER
NOVEMBER
EVS
Kiadis Pharma
DECEMBER
18
Portfolio quoted
Transactions 2016
IN
OUT
Init
JANUARY
IN
Kuka
OUT
Saft Groupe
JULY
Nibe
FEBRUARY
Kendrion
AUGUST
Schaltbau
MARCH
SEPTEMBER
APRIL
OCTOBER
MAY
Jensen-Group
Kingspan
Corbion
NOVEMBER
EVS
Ablynx
Norma Group
JUNE
DECEMBER
19
Portfolio quoted
Transactions 2016: Introduction Jensen Group
Key figures & ratios (31/12/16)
•
•
•
•
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
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)
ROE (2016)
-0.2
18%
source : Factset, Capricorn Venture Partners
20
Portfolio quoted
Transactions 2016: Introduction Kingspan
Key figures & ratios (31/12/16)
•
•
•
•
Building materials company focused on
insulation materials
Growing market, driven by tighter
energy efficiency regulations
Excellent M&A track-record
Strong cash flow generation
Mkt. Cap. (m EUR)
4595
P/E (12m fwd.)
17.0
EV/EBITDA (2016)
12.2
Dividend yield (2016)
1.3%
EPS growth 2016
31%
EPS growth 11/16
30%
Net debt/Ebitda (2016)
ROE (2016)
1.0
17%
source : Factset, Capricorn Venture Partners
21
Portfolio quoted
Transactions 2016: Introduction Corbion
Key figures & ratios (31/12/16)
•
•
•
•
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
Mkt. Cap. (m EUR)
1471
P/E (12m fwd.)
17.6
EV/EBITDA (2016)
9.3
Dividend yield (2016)
2.5%
EPS growth 2016
47%
EPS growth 11/16
13%
Net debt/Ebitda (2016)
ROE (2016)
0.5
21%
source : Factset, Capricorn Venture Partners
22
Portfolio quoted
Transactions 2016: Introduction Jensen Group
Key figures & ratios (31/12/16)
Mkt. Cap. (m EUR)
•
•
•
•
Biotechnology company with strong
antibody technology platform
Extensive clinical pipeline
Proven safety and efficacy of its
products through multiple clinical trials
Healthy cash position
659
P/E (12m fwd.)
-
EV/EBITDA (2016)
-
Dividend yield (2016)
0.0%
EPS growth 2016
-
EPS growth 11/16
-
Net debt/Ebitda (2016)
ROE (2016)
-
source : Factset, Capricorn Venture Partners
23
Portfolio quoted
Transactions 2016: Introduction Norma Group
Key figures & ratios (31/12/16)
•
•
•
•
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
Mkt. Cap. (m EUR)
1292
P/E (12m fwd.)
13.8
EV/EBITDA (2016)
9.0
Dividend yield (2016)
2.4%
EPS growth 2016
0%
EPS growth 11/16
14%
Net debt/Ebitda (2016)
ROE (2016)
2.1
19%
source : Factset, Capricorn Venture Partners
24
Portfolio quoted
Transactions 2016: Introduction EVS
Key figures & ratios (31/12/16)
•
•
•
•
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
Mkt. Cap. (m EUR)
452
P/E (12m fwd.)
17.0
EV/EBITDA (2016)
9.0
Dividend yield (2016)
3.9%
EPS growth 2016
36%
EPS growth 11/16
0%
Net debt/Ebitda (2016)
ROE (2016)
-0.4
33%
source : Factset, Capricorn Venture Partners
25
Portfolio quoted
Top 10 holdings
portfolio
entry
% NAV
31/12/16
telecom, building and industrial solutions
2014
4.5%
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%
country
sector/activity
TKH Group
Netherlands
Pharmagest
26
Portfolio quoted
Valuation of portfolio companies: 12m fwd. P/E = 18.8
12 month forward P/E of portfolio companies at 31/12/2016
source : Factset, Capricorn Venture Partners
27
Portfolio quoted
Financial Strength
Net debt/EBITDA 2016e of portfolio companies at 31/12/2016
source : Factset, Capricorn Venture Partners
28
Portfolio quoted
2016 result
2016 portfolio company returns in local currency
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
29
Portfolio quoted
Performance attribution 2016
TOP POSITIVE CONTRIBUTIONS
Stock
TOP NEGATIVE CONTRIBUTIONS
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
Estimated gross (excl. fees & cash) performance QfG Quoted Portfolio: 8%
Source: Factset, Capricorn Venture Partners
30
Agenda
 2016 FY results and performance Quest for Growth
 Comments on quoted portfolio
 Comments on unquoted portfolio
 Questions and Answers
31
Portfolio unquoted
Unquoted
companies:
ICT
Unquoted
companies:
Health-tech
(coinvestments)
Unquoted
companies:
Cleantech
(coinvestments)
Venture
Funds:
Capricorn
Cleantech
Fund
Venture
Funds:
Capricorn
Health-tech
Fund
Venture
Funds:
Capricorn
ICT ARKIV
Venture
Funds:
Capricorn
Sustainable
Chemistry
Fund
Venture
funds:
Other
funds
32
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.
33
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.
34
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.
35
Portfolio unquoted
Capricorn Sustainable Chemistry Fund
36
Portfolio unquoted
Capricorn Sustainable Chemistry Fund
37
Portfolio unquoted
Capricorn Sustainable Chemistry Fund
38
Portfolio unquoted
Capricorn Sustainable Chemistry Fund
39
Portfolio unquoted
Capricorn Sustainable Chemistry Fund
40
Portfolio unquoted
Capricorn Sustainable Chemistry Fund
41
Portfolio unquoted
Capricorn Sustainable Chemistry Fund
42
Portfolio unquoted
Value adjustments not assigned to a specific company or
venture capital fund
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%
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.
43
Agenda
 2016 H1 results and performance Quest for Growth
 Comments on quoted portfolio
 Comments on unquoted portfolio
 Questions and Answers
44
Financial calendar 2016
45
Thank you for your attention!
46