quest for growth...key facts: • return on equity in 2019: 14.02 % • net asset value per share at...

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Quest for Growth

Press & Analyst Meeting24 January 2020

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Agenda

2019 FY 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 2019: 14.02 %• Net asset value per share at 31 December 2019: € 8.12 (31 December 2018: € 7.12)• Net profit for the fiscal year: + € 16,741,026 (+ € 1.00 per ordinary share) against a loss of - € 26,929,776

(- € 1.65 per ordinary share) for the previous fiscal year• Share price at 31 December 2019: € 5.90 (31 December 2018: € 6.02)• Discount of share price versus net asset value: 27.33 % at 31 December 2019 (15.46 % at 31 December 2018)• No dividend payment due to the remaining transferred losses• IPO Sequana and exit EpiGan in the unquoted portfolio• New investment in the Capricorn Digital Growth Fund

VALUATION QUEST FOR GROWTH

Stock Price

31/12/2019 31/12/2019 30/11/2019 31/12/2018

5.90 EUR 8.12 EUR 7.90 EUR 7.12 EUR

Number of shares 16,774,226 16,774,226 16,774,226

Source: Estimate by Capricorn Partners NV

Net asset value/share

Discount of the share price versus Net Asset Value: 27.33%

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2019 FY results and performance Quest for GrowthAdded value per sector per share

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2019 FY results and performance Quest for GrowthAdded value per asset class per share

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Quest for Growth NAVResults from 31/12/2009 until 31/12/2019

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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: 27.33 %

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Quest for Growth share pricePortfolio composition and market capitalisation at 31/12/2019

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Distribution of the portfolio by sectorat 31/12/2019

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Agenda





12source: Fed, Bloomberg, DB Global Research

Fed fund rates and forecasts

Portfolio quotedEquity market environmentEquity markets in 2019

13source: Bloomberg

Stock markets in Europe & 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 2019: introductions and exits

IN OUT

Biocartis ForFarmers

Robertet USU Software

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

IN OUTExel Industries

PSI Software Biocartis

LEM

B&C Speakers

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

JULY

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Portfolio quotedTransactions 2019: Introduction PSI Software

PSI Software AG engages in the development and integration of software solutions and control systems for network infrastructure and complex production and logistics processes. The “Energy management” segment offers solutions for intelligent grid management and safe operation of transport systems, as well as solutions for energy trading and distribution. The “Production management” segment provides software for production planning, production control and logistics.

Country: Germany Sector: Software & Services Market cap at 31/12/2019: 327 million EUR Portfolio entry: 13/09/2019 Portfolio weighting at 31/12/2019: 1.4% of NAV (2.1% of quoted)

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Portfolio quotedTransactions 2019: Introduction LEM

LEM produces components for power electronics. Its core products are transducers for measuring electrical parameters like current and voltage. LEM's transducers are used in applications such as railway, motor drives, power supplies, AC/DC converters and wind and solar power generation. The products provide more control, more reliable energy and better energy efficiency. LEM reports two business segments: The Industry segment includes the businesses Drives, Renewable energy, Traction and High precision. In the Automotive segment, it develops solutions for battery management and electrical motor controls for green and conventional cars.

Country: Switzerland Sector: Technology Hardware Market cap at 31/12/2019: 1493 million EUR Portfolio entry: 30/10/2019 Portfolio weighting at 31/12/2019: 1.3% of NAV (1.9% of quoted)

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Portfolio quotedTransactions 2019: Introduction B&C Speakers

B&C Speakers is involved in the design, manufacture and distribution of electro-acoustic transducers for the “public address” (pa) audio market within the two segments “Professional PA” (Pro PA, mainly fixed installations in stadiums, cinemas etc.) and “Musical Instrument PA” (MI PA, portable equipment). The offering includes low- and high frequency drivers, high frequency horns and coaxial components. Under the “Architettura Sonora” brandname, the company also offers high-performance design loudspeakers for indoor and outdoor use.

Country: Italy Sector: Technology Hardware Market cap at 31/12/2019: 155 million EUR Portfolio entry: 22/11/2019 Portfolio weighting at 31/12/2019: 1.3% of NAV (1.9% of quoted)

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Portfolio quotedTop 10 holdings

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

source : Factset, Capricorn Partners

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Portfolio quotedValuations of portfolio companies: 12m fwd. P/E = 19.4

12 month forward P/E of portfolio companies

source : Factset, Capricorn Partners

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Portfolio quotedPerformance attribution 2019

Source: Factset, Capricorn Partners

Stock Contrib.% Stock Contrib.%

1 CEWE Stiftung & Co. KGaA 5.0 1 Biocartis Group NV -1.0

2 NEXUS AG 2.0 2 technotrans SE -0.9

3 Kingspan Group Plc 2.0 3 NORMA Group SE -0.6

4 AKKA Technologies SE 2.0 4 EXEL Industries SA -0.5

5 TKH Group N.V. Cert 2.0 5 AURES Technologies -0.4

Estimated gross (excl. fees & cash) performance QfG Quoted Portfolio: 21%

TOP POSITIVE CONTRIBUTIONS TOP NEGATIVE CONTRIBUTIONS

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Portfolio quoted2019 YTD

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 Valuation rules

Background :The IPEV valuation guidelines

December 2018 do not allow the use of price of recent investment

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Multiples Method

This method is used for investments in an established company with a significant, identifiable or regular stream of turnover or profits that can be regarded as sustainable.

Multiples:EV/turnover (enterprise value/turnover) for companies with a sustainable turnover flowEV/EBITDA (enterprise value/earnings before interest, taxes, depreciation and amortisation) for companies with a sustainable EBITDA flow

Peer Group:The multiple is determined based on the median for comparable quoted companies (the ‘peer group’). The peer group is composed on the basis of criteria such as: comparable activities or sector, size, geographical spread. The peer group will preferably encompass a minimum of three and a maximum of around ten companies.

The market-based multiple of the peer group of quoted companies is then adjusted for points ofdifferences between the peer group and the company to be valued (‘discount’ or ‘premium’). In this regard, account is taken of the difference in liquidity of the valued shares to be valued compared to that of quoted shares. Other grounds for correcting multiples might be: scope; growth; diversity; nature of activities; differences between markets; competitive positioning; performance of the company; recent transactions in which comparable companies have been sold or financed; exceptional or one-off items and anticipated drops in results.

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Scenario Analysis

The scenario analysis is used when the company has no or does not yet have any recurrent turnover or profits, which is often the case for seed, start-up or early-stage companies.

It consists of a forward-looking method that considers a number of possible future scenarios, being the probability-weighted expected return method (PWERM). Valuations will be determined by applying a correction factor to the most recent transaction price based on key performance indicators. This correction factor is calculated by applying a probability-weighting to a number of different possible future scenarios:

(a) a total write-off (investment lost) (b) a value decrease (c) a flat value (d) a value increase (e) a successful exit

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Overview of Valuation Methods

Valuation of investments in unquoted shares in the venture capital funds managed by Capricorn Partners

Closing period Multiples Method Scenario Analysis

December 31, 2019 2 participations 16 participations

Valuation of direct investments of Quest for Growth in investments in unquoted shares

Closing period Multiples Method Scenario Analysis

December 31, 2019 2 participations 6 participations

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Portfolio unquoted

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Portfolio unquoted

Sequana Medical: company raised 27.5 million euros in a successful IPO in February. The shares that Quest for Growth holds are subject to a 365-day lock-up and are valued in the portfolio as at 31 December 2019 with a discount of 3%, which will be reduced by 1.5% every month. (see CHF)

Epigan: company had been part of the Quest for Growth portfolio since 2011, and was sold to Soitec in May 2019. (see CCF)

FRX Polymers: In the third quarter of 2019, Italmatch Chemicals Group announced a strategic partnership with FRX Polymers Inc. (see CCF)

Quest for Growth also undertook follow-up investments in NGData and Bluebee.

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Portfolio unquoted

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Portfolio unquoted Venture Capital Funds

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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 21 January 2020: 4.06 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

Press releases

The fund received a first milestone payment following the sale of Ogeda to Astellas Pharma in 2017.

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Portfolio unquoted Venture Capital FundsCapricorn ICT Arkiv (CICT)

In the second quarter of 2019, Icometrix raised $18 million in fresh capital through a consortium led by Forestay Capital and Optum Ventures.

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Portfolio unquoted Venture Capital FundsCapricorn Sustainable Chemistry Fund (CSCF)

DMC has now finalized a Series A finance round US$ 11.3 million. The round was led by Sofinnovaand joined by Boulder Ventures and Siam Cement Chemicals as a new investors, with CSCF and BEV joining as existing investors.

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Portfolio unquoted Venture Capital FundsCapricorn Sustainable Chemistry Fund (CSCF)

CSCF team has been expanded in 2019

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Portfolio unquoted Venture Capital FundsCapricorn Digital Growth Fund (CDGF)

Quest for Growth committed to invest € 15 million in the Capricorn Digital Growth Fund. Of that commitment, € 3.75 million has been invested at the establishment of the fund on June 28 and

the remaining amount will be called over the lifetime of the fund.

The overall investment thesis of the Capricorn Digital Growth Fund is based on the fact that converting data into actionable insights increases the value of data driven companies. Data

requires context to become information and associations to turn into knowledge, resulting in new insights. The real value of data lies in actionable insights.

Data science and artificial intelligence (AI) are key technologies in this journey from data to actionable insights.

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The Fund will invest in data science and core AI technologies and their applications with a main focus on two verticals that will benefit

substantially from a data driven approach: Digital Health and Industry 4.0.Next to these focus areas, the investment team remains open to serendipity

for data driven investments in adjacent areas. This investment focus overlaps partially with some deeptech investment themes.

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The Fund is managed by the same investment team as the one managing the Capricorn ICT Arkiv, consisting of Katrin Geyskens and Marc Lambrechts, strengthened with a dedicated investment

associate, Maarten Lambert.Investment and divestment decisions are taken by the Capricorn Digital Growth Fund Investment

Committee consisting of Jos B. Peeters, chairman of the Executive Committee of Capricorn Partners, Katrin Geyskens and Marc Lambrechts.

The investment team is supported by Kim De Keyser for valuation and financial reporting, by Ine Jordens for legal advice and by Sabine Vermassen for compliance and legal advice.

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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 - € 339,565 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 € 121.342.943 89,10%Change in valuation in unquoted companies € -339.565 -0,25%Total Financial Assets – Shares after depreciation € 121.003.378 88,85%

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Agenda





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Miscellaneous

Management fee

At their first meeting of 2020 the Board of Directors evaluated the management fee for Capricorn Partners (the management company) and maintained it at 1 % of the company’s capital. In view of a conflict of interest in the Board of Directors, the decision was made in accordance with the applicable legal requirements, with the Board of Directors receiving advice from a committee of three independent directors assisted by an external expert.

Board of Directors

A proposal will be made to the General Meeting to extend the directorships of Michel Akkermans, René Avonts, AntoonDe Proft, Philippe de Vicq de Cumptich, Bart Fransis, Jos Peeters, Liesbet Peeters and Regine Slagmulder for a period of three years.

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Capricorn PartnersUpdate

Team:– Total staff: 21– Investment professionals: 13 of which 4 Partners,

6 Senior Investment Managers, 2 Investment Associates, 1 Investment Analyst – Administration, Risk management, Legal & Compliance: 7 – Business Development: 1

Funds managed:

* committed capital** net asset value at 31 December 2019

Quest Cleantech Fund€ 182 million**

Quest for Growth€ 136 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€ 48 million*

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Financial calendar 2020

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Thank you for your attention!

quest for growth...key facts: • return on equity in 2019: 14.02 % • net asset value per share at...

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