Quest for Growth NV · EURONEXT:QFG
Quest for Growth NV — FY2007 Earnings Presentation
54 slides from Quest for Growth NV's earnings presentation, Jan 25, 2008
Slide 1: Quest for Growth Analyst meeting
Quest for Growth Analyst meeting 25 January 2008 1
Slide 2: Agenda
Agenda Introduction 2007 results and performance Quest for Growth Comments on unquoted portfolio Comments on quoted portfolio Questions and Answers 2
Slide 3: Introduction: Highlights of the year
Introduction Highlights of the year • Return on equity per share: +1.78% since 31 December 2006. • Net Asset Value per share before dividend distribution at December 31st 2007: € 9.87 (31 December 2006: € 12.42). • Total profit for the fiscal year: € 620,575 (€ 0.05 per share) against a profit of €
Slide 4: Introduction Highlights of the year
Introduction Highlights of the year 4
Slide 5: Agenda
Agenda Introduction 2007 results and performance Quest for Growth Comments on unquoted portfolio Comments on quoted portfolio Questions and Answers 5
Slide 6: 2007 results and performance: Valuation
2007 results and performance Quest for Growth Valuation QUEST FOR GROWTH Stock Price Net asset value/share 31/12/2007 31/12/2007 30/11/2007 31/12/2006 8.40 EUR 9.87 EUR 9.92 EUR (*) 10.14 EUR (**) Number of shares outstanding: 11,789,255 11,789,255 9,459,073 Source: Quest for Growth's estimate (*) A
Slide 7: 2007 results and performance
2007 results and performance Quest for Growth 7
Slide 8: 2007 results and performance
2007 results and performance Quest for Growth 8
Slide 9: 2007 results and performance
2007 results and performance Quest for Growth Date number of shares Total net asset value NAV per share: Profit for the period 31/12/2006 9.459.073 95.915.000 10,14 31/03/2007 9.459.073 100.984.863 10,68 5.041.855 30/06/2007 11.789.255 126.779.584 10,75 5.988.175 30/09/2007 11.789.255 124.688.682 10
Slide 10: Dividend payment and net result over five years
2007 results and performance Quest for Growth Dividend payment: € 0.05 per ordinary share Netto resultaat en rendementen over de laatste 5 boekjaren 25 Netto resultaat in € miljoen Rendement 30,00% 25,00% 20 Netto resultaat in € miljoen 20,00% rendement 15 15,00% 10 10,00% 5 5,00% 0 0,00% 2003/2004
Slide 11: Performance of NAV compared to Market Indices
Performance of Quest for Growth NAV compared to Market Indices to 31 December 2007 QfG Net Asset Value Nasdaq (in EUR) New Markets 50 5% NextEconomy 1,78% 0% -1,76% -5% -3,84% -6,53% -8,22% -10% -8,92% -11,61% -15% -14,58% -20% Since 30 June 2007 Since 31 December 2007 11
Slide 12: Added value per sector
NAV / aandeel 9.50 9.60 9.70 9.80 9.90 10.00 10.10 10.20 10.30 10.40 10.50 Waarde 31/12/2006 Software IT Services Technology Hardware Semiconductors Telecommunications Sector Pharma & Biotech Health Care Equipment & Services Added value per sector Funds & Diversified Companies Other sectors Equity H
Slide 13: Positive results of equity hedge since the beginning of the fiscal year
Positive results of equity hedge since the beginning of the fiscal year Toegevoegde waarde equity hedging (januari-december 2007) 300,000 200,000 100,000 0 -100,000 EUR -200,000 -300,000 -400,000 -500,000 -600,000 -700,000 jan feb mrt apr mei jun jul aug sep okt nov dec 2007 2007 2007 2007 2007 2007
Slide 14: Net exposure quoted equity
Net exposure quoted equity 100% 80% 60% % NAV 90% 40% 72% 73% 73% 72% 68% 67% 66% 75% 74% 65% 68% 69% 20% 0% -20% 7 7 7 07 07 07 7 7 7 07 07 6 7 -0 -0 -0 l-0 r-0 -0 -0 -0 n- n- g- b- p- ay ar ov ct ec ec Ju Ap Ja Ju Au Fe Se O M M N D D net exposure quoted hedged cash unquoted 14
Slide 15: Positive results of currency hedge since the beginning of the fiscal year
Positive results of currency hedge since the beginning of the fiscal year Toegevoegde waarde currency hedging (januari-december 2007) 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 EUR 300,000 200,000 100,000 0 -100,000 -200,000 -300,000 jan 07 feb 07 mrt 07 apr 07 mei 07 jun 07 jul 07 au
Slide 16: Share price and discount to Net Asset Value
15% 25% 35% 45% 55% 5% -5% 12/02 02/03 04/03 06/03 08/03 10/03 12/03 02/04 04/04 06/04 08/04 10/04 12/04 02/05 04/05 06/05 08/05 10/05 12/05 Discount to Net Asset Value 02/06 Quest for Growth share price 04/06 06/06 08/06 10/06 12/06 02/07 04/07 06/07 08/07 10/07 12/07 Discount 31/12/2007: 14,90% 16
Slide 17: Share price Total shareholders return
Quest for Growth share price Total shareholders return 17
Slide 18: Share buy-back program
Share buy-back program Number of shares bought back at 31 December 2007: 202,715 (1.72 % of the outstanding shares) Valuation: € 8.40 per share L.O.C.O.M. (Lower Of Cost Or Market) Authorised from 30 April 2007 till 30 October 2008 (18 months) 18
Slide 19: Fund structure at December 31st, 2007
Quest for Growth fund structure at December 31st, 2007 Cash Commitments Unquoted 0% 8% 17% V enture Funds 6% Quoted-unquoted Quoted 9% 60% 19
Slide 20: Distribution of the portfolio by sector
Distribution of the portfolio by sector at December 31st, 2007 Medische Uitrusting en Telecommunicatie Diensten Andere sectoren 6% 3% 7% Farma & Biotech 23% IT Diensten 7% Fondsen & Technologie Gediversifieerde Hardware Ondernemingen 20% Halfgeleiders 7% Software 10% 17% 20
Slide 21: Distribution of the portfolio by country
Distribution of the portfolio by country at December 31st, 2007 Norway 1% Ireland Israel Portugal 2% 1% 0% Switzerland 2% Greece France 3% 2% Belgium Malta 27% 3% US 5% United Kingdom 11% Germany Netherlands 16% 27% 21
Slide 22: Agenda
Agenda Introduction 2007 results and performance Quest for Growth Comments on unquoted portfolio Comments on quoted portfolio Questions and Answers 22
Slide 23: Previous investments in 2007
Previous investments in 2007 MOVETIS In December 2006 QUEST FOR GROWTH made an investment of € 1.53 Million as part of a total investment of € 2,500,000 in Movetis, a new drug development company based on products and technologies licensed from Janssen Pharmaceutica NV and Ortho-McNeil Pharmaceutica
Slide 24: Previous investments in 2007
Previous investments in 2007 KIADIS PHARMACEUTICALS • In June 2007 QUEST FOR GROWTH completed an investment of € 2 Million as part of a total funding of € 15 million in Kiadis Pharma NV, a Dutch-Canadian Oncology company. 24
Slide 25: Q4 investments: Syntaxin
Q4 investments SYNTAXIN • In October 2007 QUEST FOR GROWTH completed an investment of £ 1.5 million as part of a total funding of £16 million in Syntaxin, a UK based drug Development Company. • Quest for Growth joins founding investor Abingworth and Life Science Partners, SR-One (GSK) and Johnson &
Slide 26: Q4 investments: Prosonix
Q4 investments PROSONIX • In November 2007 QUEST FOR GROWTH completed an investment of £ 1,083,322 as part of a total funding of £ 5 million in Prosonix ltd, a leading ultrasonic particle engineering and process chemistry solution provider for the pharmaceutical and related industries. • Quest for G
Slide 27: Q4 investments: TcLand Expression
Q4 investments TCLAND EXPRESSION • In December 2007 QUEST FOR GROWTH made an investment of € 750,000 as part of a total investment of € 1,500,000 in TcLand Expression, a company developing gene expression biomarkers for transplantation and auto-immune diseases. • Quest for Growth is investing a tota
Slide 28: Q4 investments: Certess
Q4 investments CERTESS • On December 21, 2007, QUEST FOR GROWTH has made an investment of $ 1 Million as part of a total investment of up to $2 million in Certess, Inc., an electronic design automation (EDA) company focused on developing breakthrough technology to perform functional qualification fo
Slide 29: Company news: exits Welcome Real-Time
Company news – unquoted portfolio Quest for Growth exits Welcome Real-Time On June 1st, QfG announced it has exited its investment in Welcome Real-Time QfG invested €485,000 in Welcome Real-Time in May 2005 through a secondary transaction and has made a 3 times cash return on this investment.
Slide 30: Company news: Idea AG
Company news – unquoted portfolio Idea AG IDEA AG In September 2007 IDEA AG announced that has agreed with an affiliate of Alpharma Inc.to license the exclusive United States rights to Diractin® (ketoprofen in Transfersome®, formerly known as IDEA-033) as a prescription topical NSAID (non-steroidal
Slide 31: Company news: Kimotion write-down
Company news – unquoted portfolio KIMOTION As from June, Quest for Growth has written down Kimotion to €100,000 (-90%) as the company is not developing according to its projected business plan DEPRECIATION FOR UNQUOTED COMPANY For one of the unquoted companies, the results are not in line with what
Slide 32: Agenda
Agenda Introduction 2007 results and performance Quest for Growth Comments on unquoted portfolio Comments on quoted portfolio Questions and Answers 32
Slide 33: Market environment: Comparison to past financial crises
Market environment Comparison to past financial crises DJ Stoxx 600 performance during financial crises 40% 30% 20% 10% 0% -10% -20% -30% -40% 0 0 0 0 0 0 0 0 0 50 10 15 20 25 30 35 40 45 days 1987 crash (high 5 Oct. 87) LTCM (high 20 Jul 98) sub-prime (high 16 Jul 07) 33 source : Bloomberg, Deutsch
Slide 34: Market environment: US recession?
Market environment US recession? ISM Manufacturing index & US recesssions 75 70 65 60 55 50 45 40 35 30 25 19 0 19 2 19 4 19 6 19 8 19 0 19 2 19 4 19 6 19 8 19 0 19 2 19 4 19 6 19 8 19 0 19 2 19 4 19 6 20 8 20 0 20 2 20 4 20 6 08 6 6 6 6 6 7 7 7 7 7 8 8 8 8 8 9 9 9 9 9 0 0 0 0 19 US recession (NBER)
Slide 35: Economists have never predicted recessions
Market environment US recession? Economists have never predicted recessions (US GDP yoy %) 35 source : SG
Slide 36: Earnings estimates have to come down
Market environment Earnings (estimates) have to come down S&P 500 nominal earnings and 6% growth channels 36 source : SG
Slide 37: Impact of US recession on the stock market
Market environment Impact of US recession on the stock market Previous US recessions and their impact on US equity markets 37 source : Datastream, NBER, Lehman Brothers
Slide 38: Money flow
Market environment Money flow European equity issuance less buybacks and forward 12 m returns 38 source : IFR Securities, Equiware, Datastream, Bloomberg, Lehman Brothers
Slide 39: Support from sovereign wealth funds
Market environment Support from sovereign wealth funds Largest sovereign wealth funds 39 source : Viscardi, Financial Times
Slide 40: Valuations much lower than at start 2001 recession
Market environment Valuations much lower that at start 2001 recession 12 m trailing P/E for S&P 500 index and DJ Stoxx 600 P/E at 1/1/2001 : S&P 500 : 23 DJStoxx600 : 22 P/E now : S&P 500 : 15 DJStoxx600 : 11 40 source : Factset, Quest Management
Slide 41: Will emerging markets provide support?
Market environment Will emerging markets provide support ? Trailing P/E on developed and emerging markets 41 source : SG
Slide 42: Underperformance small caps has accelerated
Market environment Underperformance small caps has accelerated 300 -30% 250 200 150 100 Ap 4 Ap 5 Ap 6 Ap 7 08 O 4 O 5 O 6 O 7 4 Ja 4 5 Ja 5 Ju 6 Ja 6 7 Ja 7 0 0 0 0 l-0 l-0 l-0 l-0 r-0 -0 r-0 -0 r-0 -0 r-0 -0 n- n- n- n- n- ct ct ct ct Ju Ju Ju Ja DJ Stoxx Small DJ Stoxx Small Growth DJ Stoxx 600 4
Slide 43: Biotechnology sector out of favour in 2007
Market environment Biotechnology sector out of favour in 2007 (Selection of) negative news items for European healthcare companies in 2007 (Selection of) positive news items for European healthcare companies in 2007 43 source : Thomson Financial, Piper Jaffray, Quest Management
Slide 44: Tech outperformance since summer only shortlived
Market environment Tech outperformance since Summer 07 only shortlived 6% 4% 2% 0% -2% -4% -6% -8% -10% -12% -14% Ju 4 Ju 5 Ju 6 Ju 7 O 4 O 5 O 6 O 7 Ja 4 Ja 5 Ja 6 Ja 7 Ap 4 Ap 5 Ap 6 Ap 7 08 l-0 l-0 l-0 l-0 r-0 r-0 r-0 r-0 0 0 0 0 -0 -0 -0 -0 n- n- n- n- n- ct ct ct ct Ja Nasdaq Composite relative
Slide 45: No overspending in IT this time
Market environment No overspending in IT this time Technology equipment spending as % of US GDP 5% 4% 3% 2% 1% 0% 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 US private investment on information processing equipment and software a
Slide 46: IT is cyclical, but not as cyclical as in 2001-02
Market environment IT is cyclical, but not necessarily as cyclical as in 2001-02 US investment on IT vs GDP growth 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 US GDP yoy % US private inv
Slide 47: Portfolio quoted equity: Performance attribution 2007
Portfolio quoted equity Performance attribution 2007 47
Slide 48: Important transactions fourth quarter 2007
Portfolio quoted equity Important transactions fourth quarter 2007 48
Slide 49: Online/e-commerce growth remains resilient
Portfolio quoted equity Online/e-commerce growth remains resilient US retail sales between Black Friday and Dec. 24, 2007 25% 20% 15% 10% 5% 0% e-commerce luxury overall electronics apparel yoy change 49 source : Needham, Mastercard Advisors
Slide 50: Cleantech becoming more important
Portfolio quoted equity Cleantech becoming more important Evolution Cleantech Index (CTIUS) vs MSCI World – in EUR 260 240 220 200 180 160 140 120 100 80 03 04 05 Ap 6 07 08 O 3 O 4 O 5 6 O 7 3 4 5 6 7 3 4 5 6 7 l-0 l-0 l-0 l-0 l-0 r- 0 r- 0 r- 0 0 r- 0 r- 0 -0 -0 -0 -0 -0 n- n- n- n- n- n- ct ct ct
Slide 51: Top10 holdings
Portfolio quoted equity Top10 holdings % NAV country sector/activity 31/12/07 Unit 4 Agresso Netherlands business software 3.8% Omrix US biosurgical and immonology products 3.6% Umicore Belgium materials technology 3.4% Icos Vision Syst. Belgium inspection systems for the semiconductor industry 3.4%
Slide 52: Financial calendar 2008
Financiéle kalender 2008 FINANCIAL CALENDAR Shareholders’ meetings Annual General Meeting 20 March 2008 Annual General Meeting 19 March 2009 Public announcements Results QT 25 April 2008 Results H1 25 July 2008 Results Q3 24 October 2008 Results FY 23 January 2009 Analyst meetings 25 April 2008 2.00
Slide 53: Agenda
Agenda Introduction 2007 results and performance Quest for Growth Comments on unquoted portfolio Comments on quoted portfolio Questions and Answers 53
Slide 54: Thank you for your attention!
Thank you for your attention! 54