Quest for Growth Press & Analyst Meeting 29 January 2010 1
Agenda Introduction FY 2009 results and performance Quest for Growth Comments on quoted portfolio Comments on unquoted portfolio Questions and Answers 2
Introduction Key figures Return on equity per share: + 26.8% since 31 December 2008. Net Asset Value per share at 31 December 2009: 7.25 (31 December 2008: 5.71). Net profit for the fiscal year: + 18,076,265 ( 1.53 per share) against a loss of - 48,404,428404 428 (- 4.10 per share) for the previous fiscal year. Share price at December 31st 2009: 4.65 (31 December 2008: 3.15) or an increase of 47.6%. Discount of the share price versus Net Asset Value: 35.9% on 31 December 2009 (44.87% on 31 December 2008). Number of outstanding shares: 11,789,255 3
Agenda Introduction FY 2009 results and performance Quest for Growth Comments on quoted portfolio Comments on unquoted portfolio Questions and Answers 4
FY 2009 results and performance Quest for Growth Valuation QUEST FOR GROWTH Stock Price Net asset value/share 31/12/2009 31/12/2009 30/11/2009 31/12/2008 4.65 EUR 7.25 EUR 6.83 EUR 5.71 EUR Number of shares 11,789,255 11,789,255 11,789,255 Source: Estimate by Quest Management NV The net asset value is calculated after dividend distribution and without taking into account the different dividend rights pertaining to the different classes of shareholders. www.questforgrowth.com e-mail: quest@questforgrowth.com 5
FY 2009 results and performance Quest for Growth 6
FY 2009 results and performance Quest for Growth 7
FY 2009 results and performance Quest for Growth 8
FY 2009 results and performance Quest for Growth 9
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FY 2009 results and performance Quest for Growth Net result in millions Return Net re esult in millio ons 30 20 10 0-10 -20-30 -40 30.00% 20.00% 10.00% 0.00% -10.00% -20.00% -30.00% -40.00% Return -50 2003/2004 2004/2005 2005 (6 months) 2006 2007 2008 2009 Dividend: 0 0 0,69 Boekjaar: 1,95 0,05 0 0-50.00% 00% 11
15,000,000 10,000,000 5,000,000 - -5,000,000-10,000,000-15,000,000-20,000,000 000 000-25,000,000 FY 2009 results and performance Quest for Growth Quest for Growth - Quarterly results 12 Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ 2002 2002 2003 2003 2003 2003 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009
Performance of Quest for Growth NAV compared to Market Indices to 31 December 2009 13
8.00 7.50 7.00 6.50 6.00 5.50 FY 2009 results and performance Quest for Growth Added value per sector Added value per sector per share (January - December 2009) Sector Hedge Cost 14 NAV / share Waarde 31/12/2008 Technology Hardware Semiconductors Pharma & Biotech Health Care Equipment & Services Funds & Diversified Companies Software & Services Electrical & Engineering Materials Other sectors Equity Hedging Currency hedging Financiële opbrengsten Kosten Waarde 31/12/2009
Results of currency hedge since the beginning of the fiscal year Added value currency hedging (January - December 2009) EUR 100,000 0-100,000-200,000 000-300,000-400,000-500,000 000-600,000-700,000-800,000 000 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 15
Quest for Growth share price Total shareholders return 16
Quest for Growth share price Discount to Net Asset Value 60% 50% Discount 31/12/2009: 35,84% 40% 30% 20% 10% Long-term holding discount Quest for Growth - discount fully diluted 0% jan 02 jul 02 jan 03 jul 03 jan 04 jul 04 jan 05 jul 05 jan 06 jul 06 jan 07 jul 07 jan 08 jul 08 jan 09 jul 09 17
Quest for Growth One share of Quest for Growth represents: Share price ~ 4,65 18
Quest for Growth One share of Quest for Growth represents: Quoted portfolio ~ 4,62 Share price 10.38 Euro ~ 4,65 19
Quest for Growth One share of Quest for Growth represents: Cash ~ 0,47 Share price ~ 4,65 Quoted portfolio ~ 4,62 20
Quest for Growth One share of Quest for Growth represents: Unquoted portfolio ~ 2,14 Share price ~ 4,65 Cash ~ 0,47 Quoted portfolio ~ 462 4,62 21
Share buy-back program Number of shares bought back at 31 December 2008: 259,305 (2.20 % of the outstanding shares) Valuation: 4.65 per share L.O.C.O.M. (Lower Of Cost Or Market) Profit in 2009: 0.03 per share Program ended on 30 October 2008 No new program in place 22
Distribution of the portfolio by sector at December 31st, 2009 Software & Services 25.8% Pharma & Biotech 19.8% Semi- conductors 0.5% Health C are Equipment & Services 4.1% Electrical & Engineering 18.8% Materials 5.7% Funds & Diversified Companies 10.3% Technology Hardware 15.0% 23
Distribution of the portfolio by country at December 31st, 2009 Switzerland 7% Norway 3% Israel 3% Ireland 3% Denmark Malta 1% 0% US Austria 0% 4% Portugal 0% France 7% United Kingdom 10% Germany 17% Belgium 25% Netherlands 20% 24
Agenda Introduction FY 2009 results and performance Quest for Growth Comments on quoted portfolio Comments on unquoted portfolio Questions and Answers 25
Genoteerde ondernemingen 62,88% Medische uitrusting & diensten Farma & Biotech Electrical & Engineering Software & diensten Technologie Hardware Materialen 2,49% 0,59% 3,79% 1,13% 3,59% 0,88% 6,32% 4,26% 2,69% 2,20% 1,74% 243% 2,43% 097% 0,97% 041% 0,41% 326% 3,26% 274% 2,74% 0,43% 1,65% 0,93% 3,27% 2,74% 2,05% 1,53% 3,90% 1,66% 1,46% 0,95% 2,82% 2.49% 9.77% 17.55% 15.39% 12.32% 5.36% 26
Market environment Recession to an end ISM Manufacturing & US recessions (NBER) 75 70 65 60 55 50 45 40 35 30 25 27 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 source : ISM, NBER, Bloomberg, Quest Management US recession (NBER) ISM Manufacturing
Market environment Valuations not excessive, but bargains difficult to find Shiller P/E ratio for S&P500 50 45 40 35 30 25 20 20 15 10 5 0 1880 1900 1920 1940 1960 1980 2000 2020 source: Robert J. Shiller, Quest Management 28
Market environment Sentiment improving but not overly bullish US AAII Investor Sentiment (bullish minus bearish readings - 4 week average) 60 50 40 30 20 10 0-10 -20-30 -40 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 source: AAII, Bloomberg, Quest Management 29
Market environment The four stages of the bear market and its aftermath source: Morgan Stanley 30
Portfolio quoted equity Net exposure quoted equity as % NAV 100% 90% 80% 70% % NA AV 60% 50% 40% 30% 20% 10% 0% 69% 67% 63% 61% 58% 61% 56% 58% 60% 57% 53% 48% 48% 46% 61% 43% 46% 47% 48% 49% 53% 52% 53% 54% 54% Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 net exposure quoted hedged (or cash bid) cash unquoted 31
Portfolio quoted equity Important transactions 4th quarter 2009 32
Portfolio quoted equity Transactions: Transics PRESS RELEASE 26 November 2009 17h Notification of threshold being crossed: Quest for Growth NV: Notification by Quest for Growth NV (a person that notifies alone) that he took a participation on 18 November 2009 of 3,09%, thus crossing the statutory threshold of 3%. Quest for Growth NV has voting rights attached to 250.000 shares, i.e. 3,09% of the total voting rights. 33
Portfolio quoted equity Transactions: United Drug Next 12 months P/E for United Drug (IE Listing) (EI) in EUR as of 11/01/10 35 35 30 30 25 25 20 20 15 15 10 10 5 5 99 00 01 02 03 04 05 06 07 08 09 10 United Drug (IE Listing) - Next 12 months P/E DJ Stoxx 600 - Next 12 months P/E DJ Stoxx /1/ Health Care - Next 12 months P/E source : Factset 34
Portfolio quoted equity Transactions: Centrotec Next 12 months P/E for Centrotec Hochleistung AG (DE) in EUR 22 22 20 18 16 14 12 10 8 6 20 18 16 14 12 10 8 6 4 99 00 01 02 03 04 05 06 07 08 09 10 Centrotec Hochleistung AG - Next 12 months P/E DJ Stoxx 600 - Next 12 months P/E DJ Stoxx /2/ Construction & Materials Bench - Next 12 months P/E 4 source : Factset 35
Portfolio quoted equity Transactions: Faiveley Next 12 months P/E for Faiveley SA (FR) in EUR 20 20 18 16 14 12 10 8 18 16 14 12 10 8 6 6 04 05 06 07 08 09 10 Faiveley SA - Next 12 months P/E DJ Stoxx 600 - Next 12 months P/E DJ Stoxx /2/ Industrial Goods & Services - Next 12 months P/E source : Factset 36
Portfolio quoted equity Transactions: SeLoger.com Next 12 months P/E for SeLoger.com (FR) in EUR 45 45 40 35 30 25 20 15 10 40 35 30 25 20 15 10 5 5 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 SeLoger.com - Next 12 months P/E DJ Stoxx 600 - Next 12 months P/E Rightmove Plc - Next 12 months P/E source : Factset 37
Portfolio quoted equity Tandberg: Cisco increased offer in November Price for TANDBERG ASA (NO Listing) (NO) in NOK as of 31/12/09 170 160 150 140 Cisco bids 153.5 NOK per share for Tandberg 170 160 150 140 130 120 110 Quest for Growth starts buying Tandberg shares Cisco increases bid to 170 NOK per share 130 120 110 100 100 90 90 80 80 70 70 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 source : Factset 38
Portfolio quoted equity Top 10 holdings country sector/activity % NAV 31/12/09 Movetis Belgium specialty pharma with focus on gastroenterology 6.3% Arcadis Netherlands engineering consultancy 4.3% Unit 4 Agresso Netherlands business software 3.9% Andritz Austria plant engineering for hydro power, pulp & paper,... 3.8% EVS Belgium digital image-processing systems for TV broadcasters 3.6% TKH Netherlands telecom, electrotechnical and industrial solutions 3.3% Tandberg Norway video conferencing solutions 3.3% Wirecard Germany internet payment processing 2.8% Pfeiffer Vacuum Germany technology for vacuum generation and analysis 2.7% Umicore Belgium materials technology 2.7% 39
Portfolio quoted equity 16 stocks with more than 50% performance in 2009 Best performing stocks in Quest for Growth porfolio in 2009 (in local currency) Solar Millennium SMA Solar ** Wirecard Andritz LEM Holding Unit 4 Agresso Tandberg ** Geberit ** Immupharma * EVS TKH Group Aixtron* Arcadis Umicore Ablynx Nemetschek Benmax50 index DJ Stoxx 600 index 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 * sold during 2009: performance until removal from portfolio ** bought during 2009: performance since introduction in portfolio source : Bloomberg, Quest Management % 40
Agenda Introduction FY 2009 results and performance Quest for Growth Comments on quoted portfolio Comments on unquoted portfolio Questions and Answers 41
Niet beursgenoteerde ondernemingen 18,87% Leningen 2,12% Durfkapitaalfondsen 9,59% Technologie Farma & Biotech Technologie Farma & Biotech 0,94% 0,61% 0,98% 1,09% lll 1,88% 6,27% 2,34% 0,35% 1,87% lv 0,18% 1,39% 1,43% 0,47% III 0,56% 0,28% 0,50% 1,32% NANTOFEN 0,32% Co investments 1,53% 0,33% 1,98% 0,18% 1,76% 0,97% 1,05% 9.43% 9.44% 2.12% 7.25% 2.34% 42
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MOVETIS Total money invested: 2,500,220 220 Valuation per 31/12/2009: 5,401,258 Movetis, one of Quest for Growths portfolio companies, raised 85 million in the first significant size IPO in the European Life Sciences sector since early 2008 and started trading on Euronext Brussels. The company issued 6,938,776 new shares priced at 12.25 per share. The IPO was led by Credit Suisse and KBC Securities as Joint Global Coordinators and Joint Bookrunners. The stock started trading at 12.60 per share. Quest for Growth invested 2,500,220 in Movetis. The investment (3.07% of the portfolio on December 2nd, 2009) was in the books at the same value. Before completion of the offer Quest for Growth was in possession of 523,601 shares. The existing shareholders engaged themselves not to sell any of their shares for at least 12 calendar months following the IPO. Following the IPO Quest for Growth, in accordance with its valuation rules, applied an 18% discount to the stock price in its books. From the first month following the IPO, the discount applied will decrease by 1.5% per month and will have disappeared completely after December 4th, 2010. The book value of the Movetis shares in the Quest for Growth portfolio, taking into account the first stock price and the discount for the lock-up agreement, increased by 2,901,038 or 0.25 per share. 44 44
CLEAR2PAY Total money invested: 3,820,403 Outstanding commitment: 211,324 Valuation per 31/12/2009: 5,359,013 - On December 23rd, Clear2Pay closed a 50 million financing round led by U.S. based Aquiline Capital Partners. QfG participated in this round for 500,000. 07/12/2009 Aquiline Capital Partners leads 50 million investment round in Clear2Pay 18/11/2009 GFI Informatique and Clear2Pay join forces in a broad European partnership 16/11/2009 Touchatag, an Alcatel-Lucent venture, and Clear2Pay partner on technology for mobile payment framework 22/10/2009 Clear2Pay wins the Flemish Government Award for the Most Promising Company 45 45
SPHERE MEDICAL Total money invested: 1,000,000 Valuation per 31/12/2009: 1,000,000 In October, 2008, QUEST FOR GROWTH has made an investment of 1 million as part of a total investment round of up to 10 million in Sphere Medical Holding. Sphere Medical is an unlisted medical device company providing minimally invasive, real time measurement of clinical chemistry parameters and therapeutic ti drug concentrations. ti Sphere Medical is headquartered d in the UK. On January 12th 2010 Quest for Growth subscribed for 250,000 in a convertible loan note to Sphere Medical Holding PLC. The loan note expires on December 18th 2014. 46 46
Financial calendar 2010 47
Agenda Introduction FY 2008 results and performance Quest for Growth Comments on unquoted portfolio Comments on quoted portfolio Questions and Answers 48
Thank you for your attention! 49