quest for growth...3 2016 fy results and performance quest for growth key figures: • return on...
TRANSCRIPT
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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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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
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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
2016 FY results and performance Quest for Growth
Comments on quoted portfolio
Comments on unquoted portfolio
Questions and Answers
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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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Portfolio quoted Equity market environment
Equity markets in 2016
source: Bloomberg
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Portfolio quoted Equity market environment
Economic indicators
ISM Manufacturing Index & US recessions (NBER) IFO index
source : ISM, NBER, IFO, Bloomberg, Capricorn Venture Partners
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Portfolio quoted Equity market environment
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
source : Factset, Capricorn Venture Partners
• Building materials company focused on
insulation materials
• Growing market, driven by tighter
energy efficiency regulations
• Excellent M&A track-record
• Strong cash flow generation
Key figures & ratios (31/12/16)
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) 1.0
ROE (2016) 17%
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Portfolio quoted Transactions 2016: Introduction Corbion
source : Factset, Capricorn Venture Partners
• 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
Key figures & ratios (31/12/16)
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) 0.5
ROE (2016) 21%
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Portfolio quoted Transactions 2016: Introduction Jensen Group
source : Factset, Capricorn Venture Partners
• Biotechnology company with strong
antibody technology platform
• Extensive clinical pipeline
• Proven safety and efficacy of its
products through multiple clinical trials
• Healthy cash position
Key figures & ratios (31/12/16)
Mkt. Cap. (m EUR) 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) -
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Portfolio quoted Transactions 2016: Introduction Norma Group
source : Factset, Capricorn Venture Partners
• 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
Key figures & ratios (31/12/16)
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) 2.1
ROE (2016) 19%
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Portfolio quoted Transactions 2016: Introduction EVS
source : Factset, Capricorn Venture Partners
• 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
Key figures & ratios (31/12/16)
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) -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
source : Factset, Capricorn Venture Partners
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Portfolio quoted Financial Strength
Net debt/EBITDA 2016e of portfolio companies at 31/12/2016
source : Factset, Capricorn Venture Partners
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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
2016 FY results and performance Quest for Growth
Comments on quoted portfolio
Comments on unquoted portfolio
Questions and Answers
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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 Capricorn Sustainable Chemistry Fund
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Portfolio unquoted Capricorn Sustainable Chemistry Fund
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Portfolio unquoted Capricorn Sustainable Chemistry Fund
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Portfolio unquoted Capricorn Sustainable Chemistry Fund
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Portfolio unquoted Capricorn Sustainable Chemistry Fund
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Portfolio unquoted Capricorn Sustainable Chemistry Fund
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Portfolio unquoted Capricorn Sustainable Chemistry Fund
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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
Comments on quoted portfolio
Comments on unquoted portfolio
Questions and Answers
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Financial calendar 2016
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Thank you for your attention!