quest for growth€¦ · fresenius sa. germany healthcare products and services 2012. 2.8% tubize....

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Quest for Growth

Press & Analyst Meeting31 July 2020

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Agenda

2020 H1 results and performance Quest for Growth

Comments on quoted portfolio

Comments on unquoted portfolio

Questions and Answers

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Key facts:

• Return on equity in 2020: - 1.90 %• Net asset value per share at 30 June 2020: € 7.96 (31 December 2019: € 8.12)• Net loss for the period: - € 2,592,710 (- € 0.15 per ordinary share) against a profit of + € 11,841,910

(+ € 1,71 per ordinary share) for the H1 2019• Share price at 30 June 2020: € 5.24 (31 December 2019: € 5.90)• Discount of share price versus net asset value: 34.20 % at 30 June 2020 (27.33 % at 31 December 2019)• Unquoted portfolio: Exit Sequana and Bluebee, new investment in Prolupin• Capricorn Funds: Exit Sequana and Bluebee, new investments in Prolupin, Void Polymers and Gradyent

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2020 H1 results and performance Quest for GrowthAdded value per sector per share

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2020 H1 results and performance Quest for GrowthAdded value per asset class per share

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Quest for Growth NAVResults from 1/01/2010 until 30/06/2020

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Quest for Growth share price10 year total shareholders return

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Quest for Growth share priceDiscount to Net Asset Value: 34.20 %

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Quest for Growth share pricePortfolio composition and market capitalisation at 30/06/2020

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Distribution of the portfolio by sectorat 30/06/2020

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Agenda





12source: Bloomberg

Stock markets in Europe, USA & emerging markets

Portfolio quotedEquity market environmentEquity markets in 2020

13source: Datastream, Kepler Cheuvreux

S&P500 3-months % change


14source: Datastream, Kepler Cheuvreux

Relative performance Value vs Growth and World ex USA vs USA


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source: Bloomberg

Sector performance in Europe

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Portfolio quotedEquity market environmentValuation

source: Factset, Capricorn Partners

STOXX Europe 600 12 month forward P/E

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Portfolio quotedTransactions 2020 H1

IN OUT INCREASE REDUCTIONNedap CEWE

Kingspan

Gurit Sequana Nedap RobertetStratec CEWE Kingspan

LEM

Tubize Robertet Gurit UmicoreCFE SAP Cenit

Norma Group PharmagestPSI Software

LEMKerry Group EVS TKH Pharmagest

Varta Akka Tubize StratecAures

LPKF KingspanNexus

Aliaxis TKH SAPCEWE KingspanGurit CenitLEM Nexus

Stratec

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

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Portfolio quotedTransactions 2020: Sale CFE

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Portfolio quotedTransactions 2020: Sale Norma Group

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Portfolio quotedTransactions 2020: Sale Robertet

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Portfolio quotedTransactions 2020: Sale EVS

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Portfolio quotedTransactions 2020: Sale AKKA

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Portfolio quotedTransactions 2020: Sale Aliaxis

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Portfolio quotedTransactions 2020: Introduction Stratec

Stratec designs and manufactures fully automated analyser systems for its partners in the fields of in-vitro diagnostics (investigation of samples taken from the human body) and life sciences. Furthermore, the company offers integrated laboratory software and complex consumables for diagnostics applications. It operates through the following main segments: Instrumentation, Diatron (hematology and clinical chemistry) and Smart Consumables.

Country: Germany Sector: Health Care Equipment & Services Market cap at 30/06/2020: 1058 million EUR Portfolio entry: 14/02/2020 Portfolio weighting at 31/06/2020: 2.4% of NAV

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Portfolio quotedTransactions 2020: Introduction Gurit

Founded in 1835, the Swiss company Gurit is specialised in fibre-reinforced and foam-based composite materials (e.g. prepregs), tooling and kitting. The products are mainly used in the wind power industry but can also be found in aerospace, rail and marine applications. The company is stock listed on the Swiss Exchange since 2006.

Country: Switzerland Sector: Materials Market cap at 30/06/2020: 613 million EUR Portfolio entry: 21/02/2020 Portfolio weighting at 30/06/2020: 2.2% of NAV

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Portfolio quotedTransactions 2020: Introduction Tubize

Financière de Tubize is a holding company and the reference shareholder that owns an interest of 35% of all shares issued by UCB.UCB is a biopharmaceutical company, focused on the discovery and development of medicines for diseases of the immune system or of the central nervous system. Products include Vimpat, Briviact and Keppra (epilepsy), Neupro (Parkinson's disease and restless leg syndrome), Cimzia (immunology) and Zyrtec (allergies).

Country: Belgium Sector: Pharma & Biotech Market cap at 30/06/2020: 3659 million euro Portfolio entry: 11/03/2020 Portfolio weighting at 30/06/2020: 2.8% of NAV

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Portfolio quotedTransactions 2020: Introduction Kerry

Kerry Group plc is a provider of taste and nutrition solutions. The Company operates through two segments: Taste & Nutrition, and Consumer Foods. The Taste & Nutrition operating segment manufactures and distributes application specific ingredients and flavors spanning various technology platforms. The Consumer Foods segment manufactures and supplies added value brands and customer branded foods primarily to the Irish and the United Kingdom markets.

Country: Ireland Sector: Materials Market cap at 30/06/2020: 19486 million EUR Portfolio entry: 03/04/2020 Portfolio weighting at 30/06/2020: 1.9% of NAV

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Portfolio quotedTransactions 2020: Introduction Varta

VARTA AG produces and markets a portfolio of various batteries including microbatteries, household batteries, energy storage systems to customer-specific battery solutions. The Microbatteries & Solutions segment includes OEM business for the hearing aids and the entertainment sector and lithium-ion battery packs. The Household Batteries segment focuses on the battery business for end customers, including household batteries, rechargeable batteries, chargers, portable power (power banks) and lights as well as energy storage systems.

Country: Germany Sector: Technology Hardware Market cap at 30/06/2020: 4038 million EUR Portfolio entry: 07/04/2020 Portfolio weighting at 30/06/2020: 1.5% of NAV

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Portfolio quotedTransactions 2020: Introduction LPKF

LPKF Laser & Electronics AG is a supplier of laser-based solutions for the technology industry. Its Electronics segment includes laser systems to cut and drill PCB materials, stencil laser equipment and LIDE (Laser Induced Deep Etching) technology for thin glass processing. The Development segment includes solutions for PCB prototyping. The Welding segment comprises systems for laser beam welding of plastic components. The Solar segment develops and produces laser scribers for the etching of thin-film solar cells and laser systems for the digital printing via Laser Transfer Printing (LTP).

Country: Germany Sector: Technology Hardware Market cap at 30/06/2020: 473 million EUR Portfolio entry: 28/05/2020 Portfolio weighting at 30/06/2020: 1.3% of NAV

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Portfolio quotedTop 10 holdings

country sector/activity portfolioentry % NAV

CEWE Germany photo and online printing services 2017 4.8%

Pharmagest France software for pharmacies 2010 4.8%

Steico Germany Insulation materials and products 2018 4.4%

TKH Group Netherlands telecom, building and industrial solutions 2014 4.0%

Nedap Netherlands electronic equipment 2018 3.1%

Nexus AG Germany software for hospitals 2011 3.0%

Fresenius SA Germany healthcare products and services 2012 2.8%

Tubize Belgium biopharmaceuticals 2020 2.8%

LEM Holding Switzerland current and voltage transducers 2019 2.6%

SAP Germany business software 2012 2.6%

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Portfolio quotedMarket caps (% of quoted portfolio excl. cash)

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Portfolio quotedValuations of portfolio companies: 12m fwd.

12 month forward P/E of portfolio companies

source : Factset, Capricorn Partners

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Portfolio quotedPerformance attribution 2020

Source: Factset, Capricorn Partners

Stock Contrib.% Stock Contrib.%

1 Pharmagest Interactive SA 2.9 1 AKKA Technologies SE -3.7

2 STRATEC SE 1.7 2 Jensen-Group NV -2.9

3 Financiere de Tubize S.A. 1.5 3 TKH Group N.V. Cert -1.8

4 STEICO SE 1.4 4 N.V. Nederlandsche Apparatenfabriek -1.8

5 NEXUS AG 1.0 5 NORMA Group SE -1.6

Estimated gross (excl. fees & cash) performance QfG Quoted Portfolio: -7%

TOP POSITIVE CONTRIBUTIONS TOP NEGATIVE CONTRIBUTIONS

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Portfolio quotedBest & worst performing stocks

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

Portfolio company returns in local currency

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Agenda





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Portfolio unquoted

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Porfolio unquotedDirect investments – co investments

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Portfolio unquoted Direct investments

Exit SequanaFollowing the lock-up agreement on February 20, the Sequana Medical shares were distributed to the shareholders of the Capricorn Health-tech Fund by means of a capital decrease in kind. The Sequana shares that Quest for Growth thus received were also sold.

Exit BluebeeIn the second quarter, Illumina Inc. announced the acquisition of BlueBee Holding (Rijswijk, The Netherlands). Since March 2016 BlueBeehas been part of the Capricorn ICT Arkiv portfolio, in which Quest for Growth participates. Since December 2017, Quest for Growth has also been a direct investor in BlueBee. The sale of BlueBee had a positive impact on Quest for Growth’s net asset value.

Investment ProlupinQuest for Growth participated with an investment of € 2 million in a growth financing round of more than € 10 million in the company Prolupin GmbH. The investment in Prolupin is a co-investment with the Capricorn Sustainable Chemistry Fund, a venture capital fund in which Quest for Growth also invests.

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Portfolio unquoted

Today Illumina, Inc. announced the acquisition of BlueBee Holding (Rijswijk, The Netherlands). BlueBee is since March 2016 a portfolio company of Capricorn ICT Arkiv, in which Quest for Growth participates and a direct co-investment of Quest for Growth since December 2017.

BlueBee has been founded in 2011 and has evolved into a rapidly configurable genomics data analysis solutions provider that enhances the value of omics technologies and services. BlueBee enables its partners-molecular assay providers, large-scale clinical and research service providers, and biopharma-to scale globally by delivering a production-ready, robust infrastructure that is regulatory compliant and user-centric.

The acquisition of BlueBee has a positive impact on the NAV of Quest for Growth of about € 6 million or € 0.35 per share. This impact is a combination of the increase in value of the direct investment and the investment through Capricorn ICT Arkiv and it includes a discount on the amount that will be kept in escrow.

The announced transaction is the third successful exit of Capricorn ICT Arkiv. In 2015, Capricorn ICT Arkiv realised the successful exit of its investment in Cartagenia and in 2018 of Noona Healthcare. The BlueBee transaction confirms that the strategy to invest indirectly in unquoted companies via Capricorn funds, including co-investments, can have a strong positive impact on the results of Quest for Growth.

BlueBee is also a good example of the “data to actionable insights” strategy and the subfocus on Digital Healthcare, also followed for the Capricorn Digital Growth Fund where Quest for Growth is cornerstone investor. This fund, which recently increased its committed capital to more than € 50 million, is expecting a final closing by the end of the year.

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Portfolio unquoted

Quest for Growth participates in a double-digit million growth financing round for Prolupin GmbH with an investmentof € 2 million.

Prolupin is an innovative plant-based protein company based in Grimmen, Germany. Since the market introduction of its Made with LUVE brand in 2015, the company has firmly established itself in the German-speaking retail market with its range of high-quality, plant-based alternative dairy products including non-dairy yoghurts, milks, ice cream and cream cheese. The company manages the full value chain from lupine raw material sourcing to delivering branded consumer products to retail stores. Its core technology competence is in the production of lupine protein isolate at scale. The new financing will allow Prolupin to address the mass market for further growth, expand internationally and grow its plant-based offering both B2C and B2B.

The investment in Prolupin is a co-investment with Capricorn Sustainable Chemistry Fund, a venture capital fund in which Quest for Growth is also an investor.

The financing round was led by Capricorn Partners, the independent manager of private and quoted equity funds that invest in minority shareholding positions of innovative companies with technology as competitive advantage, and Novax, the Stockholm-based growth investor powered by the Swedish Axel Johnson family, hallmarked by their long-term commitments and prominent holdings within the food space. The round was initiated by existing investors Munich Venture Partners and eCapital Entrepreneurial Partners, who joined and hired the investment bank Bryan, Garnier & Co as exclusive financial advisor on the transaction. The Capricorn Partners and Novax investment brings a broad mix of technology and B2B expertise and trade network resources to Prolupin.

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Portfolio unquotedVenture capital fundsNAV as per 30/06/2020

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Portfolio unquoted Venture capital fundsCapricorn Cleantech Fund (CCF)

Listed share price March 2017 (IPO): 11.41 EURListed share price 31 December 2018: 2.60 EURListed share price 31 December 2019: 3.15 EURListed share price 30 June 2020: 6.38 EUR

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Portfolio unquoted Venture Capital FundsCapricorn Health-tech Fund (CHF)

Listed share price February 2019 (IPO): 8.42 EURListed share price 31 December 2019: 6.26 EURListed share price 21 January 2020: 7.22 EUR

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Portfolio unquoted Venture Capital FundsCapricorn ICT Arkiv (CICT)

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Portfolio unquoted Venture Capital FundsCapricorn Sustainable Chemistry Fund (CSCF)

Capricorn Partners participates in a double-digit million growth financing round for ProlupinGmbH with an investment of € 7 million from its Capricorn Sustainable Chemistry Fund and Quest for Growth.

Prolupin is an innovative plant-based protein company based in Grimmen, Germany. Since the market introduction of its Made with LUVE brand in 2015, the company has firmly established itself in the German-speaking retail market with its range of high-quality, plant-based alternative dairy products including non-dairy yoghurts, milks, ice cream and cream cheese. The company manages the full value chain from lupine raw material sourcing to delivering branded consumer products to retail stores. Its core technology competence is in the production of lupine protein isolate at scale. The new financing will allow Prolupin to address the mass market for further growth, expand internationally and grow its plant-based offering both B2C and B2B.

The financing round was led by Capricorn Partners, the independent manager of private and quoted equity funds that invest in minority shareholding positions of innovative companies with technology as competitive advantage, and Novax, the Stockholm-based growth investor powered by the Swedish Axel Johnson family, hallmarked by their long-term commitments and prominent holdings within the food space. The round was initiated by existing investors Munich Venture Partners and eCapital Entrepreneurial Partners, who joined and hired the investment bank Bryan, Garnier & Co as exclusive financial advisor on the transaction. The Capricorn Partners and Novax investment brings a broad mix of technology and B2B expertise and trade network resources to Prolupin.

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Portfolio unquoted Venture Capital FundsCapricorn Sustainable Chemistry Fund

Void Polymers provides an additive technology to polymerization masterbatches for making stretched films. During the stretching phase nano-cavities are created, that reduce density, while improving several material properties such as punctuation strength. It also creates opacity, which reduces the need for titanium dioxide to create white films. The result is a 25% direct material reduction at lower density of the film product. Void will initially target the low desnity polyethyleen film market, widely used in foils, bags and other sheet/film-based packaging materials. Void's technology was developed by Kimberley-Clark and created as a spin out in 2015. KC has licensed an extensive IP portfolio to Void.

CSCF Investment: € 3,000,000 GBP(total round 8,000,000 GBP)

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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 - € 56,035 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.

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Capricorn PartnersUpdate

Team:– Total staff: 22– Investment professionals: 14 of which 5 Partners,

5 Senior Investment Managers, 3 Investment Associates, 1 Investment Analyst – Administration, Risk management, Legal & Compliance: 7 of which 1 Partner– Business Development: 1– New partner: Rob van der Meij– Hired: Antoine D’Hollander, Investment Associate

Funds managed:

* committed capital** net asset value at 30 June 2020

Quest Cleantech Fund€ 166 million**

Quest for Growth€ 134 million**

Capricorn Cleantech

Fund€ 112 million*

Capricorn Health-tech Fund

€ 42 million*

Capricorn ICT Arkiv

€ 33 million*

Capricorn Sustainable Chemistry

Fund€ 86.5 million*

Quest+€ 6 million**

Capricorn ICT Arkiv

€ 33 million*

Capricorn / VC funds

Quest / equity funds

Capricorn Digital Growth

Fund€ 50 million*

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Financial calendar 2020

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Thank you for your attention!

quest for growth€¦ · fresenius sa. germany healthcare products and services 2012. 2.8% tubize....

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