The enclosed information constitutes regulated information as defined in the Royal Decree of 14 November 2007 regarding the duties of issuers of financial instruments which have been admitted for trading on a regulated market. QUEST FOR GROWTH INTERIM FINANCIAL REPORT JANUARY - JUNE 2012 INTERIM REPORT The first half of the year was closed with a net profit of 5.7 million ( 0.50 per share), to compare with a profit of 1.9 million ( 0.16 per share) for the first six months of 2011. The major part of the profit made in the first quarter could thus be retained despite the dreadful financial climate during the last couple of months. While the net asset value increased with 6.3 % to 8.40 per share, the share price of Quest for Growth decreased slightly in the same six months period. This caused the discount of the share price to the net asset value to run up to 44 %. The six months profit comes entirely from the quoted portfolio. The performance of this part of the portfolio amounted to more than 10 %, while most of the stock market indices booked little progress (DJ Stoxx 600 index +2.7%). Shares like Arcadis, Andritz, Init and LEM obtained a performance of more than 25%. The best performer was Leguide.com, a French internet company of which Quest for Growht owned about 2 %. After a takeover bid by Lagardère, which was afterwards increased by 17%, all shares were sold at a share price which was almost 90 % higher than in the beginning of the year. In the second quarter Stratec Biomedical and Docdata were also sold completely. Saft Groupe, a French producer of high-quality batteries, was added to the portfolio. This share had been part of the portfolio before but was sold in October 2009 because of the valuation. In the meantime the price-gains ratio has dropped to less than 10. Furthermore a position was bought in the German software giant SAP in May. Quest for Growth supported its unquoted participation Active Circle with an investment of 200,000 in AC Capital, a recently created holding above Active Circle. Following some changes to the management team the company is now ready for a new phase. Active Circle develops and markets a software solution for storing and managing large volumes of digital content. TcLand finalised an additional investment round, in which Quest for Growth participated for about 700,000. Moreover the convertible loan of TcLand, for an amount of 500,000, was converted into shares. The largest shareholder of Quest for Growth, the American Financial & Investment Management Group, Ltd. announced in May having increased its participation to more than 15 % of the shares issued. In the second quarter the new management agreement between Quest for Growth and Capricorn Venture Partners came into force. Capricorn Venture Partners will act as asset manager and be responsible for the portfolio management and the administration of the PRIVAK. Mr. René Avonts, former managing director of Quest Management and former member of the executive committee of Paribas Bank Belgium and Artesia, and Mr. Philippe de Vicq de Cumptich, former managing director of Gevaert and KBC Private Equity, have been appointed as effective leaders within the board of Quest for Growth, charged with the supervision of the execution of the management agreement. The new agreement provides for a gradual decrease of the management fee related to the administrative services and for a compensation of the fee each time Quest for Growth invests in venture capital funds managed by Capricorn Venture Partners. 1 DISCOUNT QUEST FOR GROWTH VALUATION QUEST FOR GROWTH 60% 55% 50% 45% Discount of Quest for Growth and Belgian investment companies Stock Price Net asset value/share 30/06/2012 30/06/2012 31/05/2012 31/12/2011 4.68 EUR 8.40 EUR 8.48 EUR 7.90 EUR Number of shares 11,529,950 11,529,950 11,529,950 Discount of the share price versus Net Asset Value: 44.29% Source: Estimate by Capricorn Venture Partners NV 40% 35% 30% PERFORMANCE PER SHARE IN QUOTED PORTFOLIO SINCE 31 DECEMBER 2011 25% 40 20% 30 15% 10% 5% Average discount of Belgian investment companies (Source: KBC Securities) Discount Quest for Growth 20 10 % 0% 0 Leguide.com Arcadis Umicore Init LEM Holding Melexis Nexus Nemetschek Imtech Unit4 Andritz Kendrion Schaltbau Transics QfG quoted (e) Centrotec TECDAX Performance DJ STOXX Small 200 Teva - ADR Econocom DJ STOXX 600 Faiveley Pharmagest United Drug Gerresheimer Docdata Sphere Medical EVS -10-20
CONDENSED INTERIM FINANCIAL STATEMENTS 2 1. BALANCE SHEET AT JUNE 30 ST 2012 ASSETS 2012 30 June 2011 31 December LIABILITIES 2012 30 June 2011 31 December Fixed assets 91,682,054 86,989,456 Capital and Reserves 96,853,774 96,853,774 Formation expenses 0 0 Issued capital 109,748,742 109,748,742 Financial assets 91.207.841 86.898.456 Reserves 656,423 656,423 Shares 84,525,230 79,492,057 Reserves not available for distribution 0 0 Claims 7,156,824 7,497,399 Reserves available for distribution 656,423 656,423 Current assets 5,456,292 4,235,030 Profit carried forward 0 0 Amounts receivable > one year 0 0 Loss carried forward (19,303,859) (19,303,859) Trade receivables 0 0 Result for the period 5,752,467 5,752,467 Other receivables 0 0 Amounts receivable < year 625,739 1,165,102 Debts 284,573 284,573 Trade receivables 0 0 Amounts payable < one year 45,319 45,319 Other receivables 625,739 1,165,102 Financial debts 0 0 Investments 0 0 Trade debts 4,807 4,807 Own shares 0 0 Taxes 447 447 Term investments 0 0 Other debts 40,064 40,064 Cash 3,929,853 3,038,427 Deferred charges and accrued income 900,700 31,501 Deferred charges and accrued income 239,254 239,254 TOTAL ASSETS 97,138,346 91,224,485 TOTAL LIABILITIES 97,138,346 97,138,346 2. STATEMENT OF INCOME FOR THE PERIOD ENDED JUNE 30 TH 2012 1 January 2012 30 June 2012 1 April 2012 30 June 2012 1 January 2011 30 June 2011 1 April 2011 30 June 2011 Operating income and charges Gross operating income 6,091,714 (739,747) 1,558,858 461,572 Realised gains/losses on shares 165,118 (555,231) 3,240,088 2,166,400 Unrealised gains/losses on shares 6,221,256 89,038 (2,434,911) (1,989,992) Results from option transactions 46,757 91,444 25,595 25,595 Realised results from forward currency rate agreements (425,245) 208,674 824,693 227,785 Unrealised results from forward currency rate agreements 83,828 (573,673) (96,607) 31.784 Depreciation and other amounts written off (0) (0) (0) (0) Other operating charges (990,135) (517,676) (0) (0) Management fee (730,561) (357,610) (743,836) (373,973) Custodian fee (20,254) (8,985) (24,722) (13,914) Statutory Auditors fee (5,808) (2,904) (4,554) (2,290) Printing and publication costs (38,505) (19,367) (32,993) (17,435) Annual tax on collective investment schemes (36,241) (18,120) (42,055) (21,144) Directors fees (115,117) (91,813) (35,901) (18,049) Advisory fees (8,475) (4,238) (17,542) (8,819) Accountants (0) (0) (0) (0) Other (35,172) (14,638) (40,050) (17,128) Operating profit / loss 5,101,579 (1,257,423) 617,204 (11,181) Financial income 1,058,832 815,178 1,236,111 1,071,345 Financial charges (407,859) (3,283) 48,070 (22,686) Amounts written off own shares (0) (0) 217,816 (1) 51,861 (1) Capital increase cost (0) (0) (0) (0) Other (407,859) (3,283) (169,745) (74,547) Profit / Loss for the period, before taxes 5,752,552 (445,528) 1,901,386 1,037,479 Income taxes (86) (86) (0) (0) Profit / Loss for the period, after taxes 5,752,467 (445,614) 1,901,386 1,037,479 Profit / Loss for the period, after taxes, per share 0.50 (2) (0.04) (2) 0.16 (2) 0.09 (3) (1) Withdrawal capital losses treasury shares (2) Based on 11,529,950 shares (3) Based on 11,789,255 shares
3. OFF BALANCE POSITIONS AT JUNE 30 ST 2012 3.1 Commitments Commitment Currency Commitment in Capricorn Cleantech Co-investments 1,500,000 1,500,000 Capricorn Cleantech Fund 550,000 550,000 Capricorn Health-tech Fund 11,250,000 11,250,000 Carlyle Europe Technology Partners I 385,055 385,055 Carlyle Europe Technology Partners II 1,087,528 1,087,528 Cartagenia 625,001 625,001 Life Sciences Partners III 70,799 70,799 Life Sciences Partners IV 1,020,773 1,020,773 Schroder Ventures International Life Sciences Fund II 19,953 $ 15,848 Ventech Capital 2 203,714 203,714 Vertex III 49,023 $ 38,938 TOTAL 16,747,653 3.2 Forward currency rate agreements Value date Counterparty Quest for Growth buys Quest for Growth sells 31/07/2012 Belfius Bank 3,119,735,45 2,500,000 31/07/2012 Belfius Bank 1,924,040,49 $ 2,400,000 31/07/2012 KBC Bank 3,118,276,22 2,500,000 31/07/2012 KBC Bank 1,922,614,76 $ 2,400,000 3 PORTFOLIO COMPOSITION AND MARKET CAPITALISATION AT JUNE 30 ST 2012 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Cash + Other net assets Quoted portfolio Unquoted portfolio Venture funds Market capitalisation
4. NOTES TO THE FINANCIAL STATEMENTS FINANCIAL ASSETS BREAKDOWN AT JUNE 30 TH 2012 4.1. Shares quoted companies 4 Company Sector / Market Number of shares Change since 31/12/2011 Currency Share price Valuation in in % of Net Asset Value Software & Services ECONOCOM Euronext Brussels 196,763 43.100 16,6900 3,283,974 3.39% INIT INNOVATION Deutsche Börse 105,200 6.022 17,4300 1,833,636 1.89% NEMETSCHEK Deutsche Börse 125,000-15.000 29,3000 3,662,500 3.78% SAP Deutsche Börse 42,500 42.500 46,5450 1,978,163 2.04% TRANSICS Euronext Brussels 250,000 0 7,2900 1,822,500 1.88% UNIT 4 Euronext Amsterdam 45,330-112.500 20,0950 910,906 0.94% Technology Hardware EVS BROADCAST EQUIPM. Euronext Brussels 100,000 10.000 37,1700 3,717,000 3.84% LEM Holding SWX Swiss Exchange 4,869-341 CHF 482,0000 1,950,838 2.01% Pharma & Biotech TEVA PHARMACEUTICAL Nasdaq 60,000 0 $ 39,4400 1,879,587 1.94% Healthcare Equipement & Services GERRESHEIMER Deutsche Börse 53,500 18.500 37,0900 1,984,315 2.05% NEXUS Deutsche Börse 195,000 77.000 7,8200 1,524,900 1.57% PHARMAGEST INTERACTIVE Euronext Paris 40,000 0 46,2000 1,848,000 1.91% SPHERE MEDICAL AIM 930,031 0 0,7300 841,501 0.87% UNITED DRUG Dublin 1,391,786-100.000 2,0700 2,880,997 2.97% Electrical & Engineering ANDRITZ Vienna 100,000-25.000 40,5200 4,052,000 4.18% ARCADIS Euronext Amsterdam 210,000-15.000 17,2200 3,616,200 3.73% CENTROTEC Deutsche Börse 65,000-8.000 12,9900 844,350 0.87% FAIVELEY Euronext Paris 27,500-2.500 42,0500 1,156,375 1.19% KENDRION Euronext Amsterdam 112,128 57.128 16,7950 1,883,190 1.94% ROYAL IMTECH Euronext Amsterdam 194,666 4.611 18,7750 3,654,854 3.77% SAFT GROUPE Euronext Paris 50,000 50.000 18,9000 945,000 0.98% SCHALTBAU HOLDING Deutsche Börse 16,600 6.100 78,3000 1,299,780 1.34% Semiconductors MELEXIS Euronext Brussels 145,133 25.000 12,2500 1,777,879 1.84% Materials UMICORE Euronext Brussels 82,500-27.500 36,3700 3,000,525 3.10% 52,348,970 54.05% 4.2. Shares unquoted companies Company Sector / Market Currency Valuation in in % of Net Asset Value AC CAPITAL Logiciel & Services 200,040 0.21% ANTERYON Matériel Technologique 1,499,027 1.55% CAPRICORN CLEANTECH CO-INVESTMENTS (Ducatt, Epigan) 1,074,527 1.11% CARTAGENIA Logiciel & Services 625,001 0.65% CLEAR2PAY Logiciel & Services 5,570,337 5.75% IDEA AG Pharma & Biotech 164,417 0.17% KIADIS PHARMA Pharma & Biotech 2,374,279 2.45% MAGWEL Logiciel & Services 430,000 0.44% PROSONIX Pharma & Biotech 2,590,463 2.67% SYNTAXIN Pharma & Biotech 2,494,020 2.58% TCLAND Pharma & Biotech 2,764,026 2.85% 19,786,136 20.43%
4.3. Investments in venture funds CAPRICORN VENTURE PARTNERS Currency Last Valuation Date Valuation in in % of Net Asset Value CAPRICORN CLEANTECH FUND 31-12-2011 1,159,135 1.20% CAPRICORN HEALTH-TECH FUND 31-12-2011 3,315,357 3.42% THIRD PARTy funds CARLYLE EUROPE TECHNOLOGY PARTNERS I 31-12-2011 1,646,894 1.70% CARLYLE EUROPE TECHNOLOGY PARTNERS II 31-12-2011 2,901,495 3.00% CETP LP CO-INVESTMENT 31-12-2011 1,692,882 1.75% CETP II LP CO-INVESTMENT 31-12-2011 181,009 0.19% LIFE SCIENCES PARTNERS III 31-12-2011 1,437,000 1.48% LIFE SCIENCES PARTNERS IV 31-12-2011 869,661 0.90% SCHRODER VENTURES LSF II $ 31-12-2011 192,448 0.20% VENTECH CAPITAL 2 31-12-2011 854,701 0.88% VERTEX III $ 31-12-2011 1,420,246 1.47% 15,670,828 16.18% Total Financial Assets - Shares 87,805,934 90.66% Depreciation unquoted companies -3,280,704-3.39% Total Financial Assets Shares after depreciation 84,525,230 87.27% 4.4. Amounts receivable companies Company Face value in currency Currency Valuation in in % of Net Asset Value Loan notes CAPRICORN CLEANTECH CO-INVESTMENTS 94,119 94,119 0.10% ANTERYON Convertible loan note 63,440 63,440 0.07% 157,559 0.16% Commercial paper CODRALUX 2,000,000 1,999,786 2.06% CODRALUX 2,000,000 1,999,634 2.06% DEME 2,000,000 1,999,939 2.06% ETEXCO 1,000,000 999,907 1.03% 6,999,265 7.23% 5 Total Financial Assets - Amounts receivable 7,156,824 7.39% Total Financial Assets 91,682,054 94.66% Cash 3,929,853 4.06% Other Net Assets 1,241,867 1.28% Quest for Growth - Ordinary shares - 0.00% Total Net Asset Value 96,853,774 100.00% PORTFOLIO DISTRIBUTION BY SECTOR PORTFOLIO DISTRIBUTION BY COUNTRY PORTFOLIO DISTRIBUTION BY CURRENCY la Suisse Cash & other net assets 2.0% Software & Services 21.4% Electrical & Engineering 19.6% Funds & Diversified Companies 16.5% Israël l'autriche 3.5% 4.3% la France 8.2% l'allemagne 2.1% l'irlande Etats-Unis 3.0% 0.2% USD 4.02% GBP 6.31% Materials 3.2% Health Care Equipment & Services 9.6% Pharma & Biotech 12.9% Technology Hardware 12.1% Royaume-Uni 14.0% la Belgique 35.5% EUR 87.50% CHF 2.18% Other sectors 7.4% 7.6% les Pays-Bas 17.2%
ADDED VALUE PER SECTOR PER SHARE (JANUARY - JUNE 2012) 8.70 PORTFOLIO HEDGE PROFITS AND LOSSES 8.60 8.50 8.40 8.30 8.20 8.10 8.00 7.90 7.80 7.70 7.60 7.50 NAV 31/12/2011 Technology Hardware Semiconductors Pharma & Biotech Health Care Equipment & Services Funds & Diversified Companies Software & Services Electrical & Engineering NAV / Action Materials Other sectors Depreciation unquoted companies Equity Hedging Currency hedging Financial profits & losses Expenses NAV 30/06/2012 6 PROFILE, AIM Quest for Growth focuses on European technology-based growth companies in sectors such as life sciences, information technology, software, semiconductors, telecom, electronics, new materials and special situations in other growth sectors. Funds under management amounted to 97 million on June 30 th 2012. Quest for Growth has been listed on Euronext Brussels since September 23 rd 1998. INVESTMENT POLICY Quest for Growth invests in growth companies with the objective of converting capital gains into tax-free income through the Privak structure. The largest part of the portfolio is invested in growth companies listed on European stock exchanges (Euronext, London Stock Exchange, Deutsche Börse etc.) and other regulated markets. Under Privak rules this part may not exceed 65 % of the assets. The Privak, created by Royal Decree of April 18th 1997, is an investment vehicle, specially tailored to provide a suitable framework for investments in private equity and in growth companies. The Privak is a closed-end Undertakings for Collective Investments in Transferrable Securities (UCITS) under the regulation of the Financial Services and Market Authority (FSMA) and subject to specific investment and dividend pay-out.
REPORT OF THE STATUTORY AUDITOR: INDEPENDENT REPORT OF INTERIM FINANCIAL INFORMATION AS AT 30 JUNE 2012 INTRODUCTION We have reviewed the accompanying condensed balance sheet of Quest for Growth NV-SA ( the Company ) as at June 30th, 2012, and the related condensed statement of income for the 6 month period then ended ( the interim financial information ), prepared in accordance with the accounting framework and standards applicable in Belgium, with a balance sheet total of 97.138.346and with an income statement presenting a profit for the six month period then ended of 5.752.467. This consolidated interim financial information is the responsibility of the Company s management. Our responsibility is to issue a report on this interim financial information based on our review. SCOPE OF REVIEW We conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information is not prepared, in all material respects, in accordance with the accounting framework and standards applicable in Belgium. Kontich, 23 July 2012 Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren - Réviseurs d Entreprises Represented by Erik Clinck, Partner. STATEMENT ON THE TRUE AND FAIR VIEW OF THE CONDENSED INTERIM FINANCIAL STATEMENTS AND THE FAIR OVERVIEW OF THE INTERIM FINANCIAL REPORT Regine Slagmulder BVBA, represented by Prof. Regine Slagmulder, Director Chairman of the Audit Committee, René Avonts BVBA, represented by Mr René Avonts, director effective leader and Axxis BVBA, represented by Mr Philippe de Vicq de Cumptich, director effective leader, certify, on behalf and for the account of the Board of Directors of Quest for Growth NV, that, to their knowledge, a) the condensed interim financial statements which have been prepared in accordance with the accounting framework and standards applicable in Belgium give a true and fair view of the assets, liabilities, financial position and profit or loss of the company, under Article 13, 4 of the Royal Decree of November 14, 2007 on the obligations of issuers of financial instruments admitted to trading on a regulated market. 7 b) the interim financial report includes a fair overview of the information required under Article 13, 5 and 6 of the Royal Decree of November 14, 2007 on the obligations of issuers of financial instruments admitted to trading on a regulated market. Leuven, 23 July 2012 Regine Slagmulder BVBA René Avonts BVBA Axxis BVBA Director Chairman of the Audit committee Director effective leader Director effective leader represented by represented by represented by Regine Slagmulder René Avonts Philippe de Vicq de Cumptich TOTAL SHAREHOLDERS RETURN (SINCE 30/06/2009) QUEST FOR GROWTH: RESULTS FROM 1 JANUARY 2005 UNTIL 30 JUNE 2012 40,000,000 30,000,000 20,000,000 10,000,000-2005 2006 2007 2008 2009 2010 2011 H1/2012-10,000,000-20,000,000
GeNeRAL INFORMATIONS 8 Board of Directors ADP Vision BVBA, Chairman, represented by Mr. Antoon De Proft René Avonts BVBA, Director, represented by Mr. René Avonts Axxis BVBA, Director, represented by Mr. Philippe de Vicq de Cumptich Auxilium Keerbergen BVBA, Director, represented by Mr. Frans Theeuwes Baron Bernard de Gerlache de Gomery, Director De Meiboom NV, Director, represented by Mr Edward Claeys Euro Invest Management NV, Director, represented by Prof. Philippe Haspeslagh Gengest BVBA, Director, represented by Mr. Rudi Mariën Pamica NV, Director, represented by Mr. Michel Akkermans Dr. Jos B. Peeters, Director Regine Slagmulder BVBA, represented by Prof. Regine Slagmulder Mr. Dirk Vanderschrick, Director Audit Committee Regine Slagmulder BVBA, Chairman, represented by Prof. Regine Slagmulder Auxilium Keerbergen BVBA, represented by Mr Frans Theeuwes Baron Bernard de Gerlache de Gomery Asset Manager Capricorn Venture Partners NV, Lei 19 box 1, B-3000 Leuven, Auditors Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren Burg. CV, represented by Mr. Erik Clinck, Prins Boudewijnlaan 24d, B-2550 Kontich Depositary bank BELFIUS BANK BELGIUM, Pachecolaan 44, B-1000 Brussels Incorporation June 9 th, 1998 Official listing September 23 rd, 1998 on Euronext Brussels Security number ISIN: BE0003730448 Stock Price Bloomberg: QFG BB Equity Reuters: QUFG.BR Telekurs: 950524 Company reports published quarterly, the next quarterly report will be published in October 2012 Estimated published every first Saturday of the month in De Tijd and in L Echo, Moneytalk and on the website Net Asset Value www.questforgrowth.com QUEST FOR GROWTH NV Privak, fixed capital investment company established under Belgian Law Lei 19, box 3 - B-3000 Leuven - Phone: +32 (0)16 28 41 28 - Fax: +32 (0)16 28 41 29 www.questforgrowth.com quest@questforgrowth.com