Quest for Growth...¾19/9/2011: Clear2Pay and Systar (Euronext Paris ISIN: FR0000052854-SAR) , the...
Transcript of Quest for Growth...¾19/9/2011: Clear2Pay and Systar (Euronext Paris ISIN: FR0000052854-SAR) , the...
1
Quest for Growth
Press & Analyst Meeting28 October 2011
2
Agenda
Introduction
Q3 2011 results and performance Quest for Growth
Comments on unquoted portfolio
Comments on quoted portfolio
Questions and Answers
3
IntroductionKey facts
• Net Asset Value per share on September 30th 2011: € 7.99(December 31st 2010: € 8.99)
• Net loss on September 30th 2011: € 14.2 million (€ 1.23 per share) against a profit of € 11.8 million (€ 1 per share) at September 30th 2010
• Share price on September 30th 2011: € 5.00 (December 31st 2010: € 5.31)
• Discount of the share price versus Net Asset Value: 37.40 % on September 30th 2011(41% on December 31st 2010)
• One new investment in unquoted portfolio: Cartagenia € 1,250,000
• New board installed
• New major shareholding disclosed: FIM
• BVFA/ABAF award - ranking investor relations: 4th place
4
IntroductionNew board of directors installed
(*) independent
(*)
(*)
(*)
(*)
5
IntroductionNew board of directors installed
6
IntroductionNew board of directors installed
3 Board members leave the company:
7
IntroductionNew board of directors installed
Mr. De Proft graduated with a masters degree in Electrical Engineering and a postgraduate degree in Medical Engineering in 1982.
Mr De Proft was president, CEO and member of the board of directors of ICOS. ICOS was a public company, listed on the Euronext and Nasdaq stock market.
In 2008 ICOS Vision systems was acquired by KLA-Tencor. Mr De Proft remained on board with ICOS until early 2009.
As chairman of the board of IMEC, Mr De Proft has experience with a high-tech organization of approximately 1600 researchers. IMEC has a large technology network around the world and is actively connected to Belgian and European development programs.
8
IntroductionNew board of directors installed
Baron Bernard de Gerlache de Gomery, PhD in Law (UCL) , Master of Business Administration (Boston University), managing director of Belficor NV, chairman of Editions Dupuis NV, vice chairman of Texaf NV, director of Sipef NV, Floridienne NV, Siat NV.
9
IntroductionNew board of directors installed
Regine Slagmulder is Partner and Full Professor management accounting & control at the Vlerick Leuven Gent Management School, where she is also head of the Competence Center Accounting & Finance. She is a guest professor at the Faculty of Economics and Business Adminstration of the Ghent University too. Beforehand she worked as strategy practice consultant at McKinsey & Company. She was previously joined to INSEAD as fullltime professor and to the Tilburg University as professor in management accounting. Regine Slagmulder graduated as civil electrotechnical engineer and as business engineer at the Ghent University, after which she obtained a PhD in Management at the Vlerick School. For her research activities she was joined as a Research Fellow to INSEAD, Boston University (USA) and the P. Drucker Graduate Management Center of Claremont University (USA). Her research and teaching is focussed on performance, risk en governance.
10
IntroductionNew board of directors installed
Philippe de Vicq brings over 30 years of international experience in private equity and investment management. In his last position he was CEO of KBC Private Equity. De Vicq has a wide network among Belgium's mid-cap and family-owned businesses.
11
IntroductionBVFA/ABAF award
12
IntroductionNew major shareholding disclosed
13
Agenda
Introduction
Q3 2011 results and performance Quest for Growth
Comments on unquoted portfolio
Comments on quoted portfolio
Questions and Answers
14
Q3 2011 results and performance Quest for Growth
Stock Price
30/09/2011 30/09/2011 31/08/2011 31/12/2010
5.00 EUR 7.99 EUR 8.34 EUR 8.99 EUR
Number of shares 11,529,950 11,529,950 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 o f shareholders.
Net asset value/share
15
Q3 2011 results and performance Quest for Growth
16
Q3 2011 results and performance Quest for Growth
17
Q3 2011 results and performance Quest for Growth
18
Q3 2011 results and performance Quest for Growth
-50.00%
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
-50
-40
-30
-20
-10
0
10
20
30
2003/2004 2004/2005 2005(6 months)
2006 2007 2008 2009 2010 2011(9 months)
Ret
urn
Net
resu
lt in
€m
illio
ns
Boekjaar:
Net result in € millions Return
Dividend: € 0 € 0 € 0,69 €1,95 € 0,05 € 0 € 0 € 0 € 0
19
Results from 2005 until todayQ3 2011 results and performance Quest for Growth
-20,000,000
-10,000,000
-
10,000,000
20,000,000
30,000,000
40,000,000
2005 2006 2007 2008 2009 2010 2011 (untilSeptember
30th)
20
-25000000.0
-20000000.0
-15000000.0
-10000000.0
-5000000.0
-
5000000.0
10000000.0
15000000.0
Q3/
2002
Q4/
2002
Q1/
2003
Q2/
2003
Q3/
2003
Q4/
2003
Q1/
2004
Q2/
2004
Q3/
2004
Q4/
2004
Q1/
2005
Q2/
2005
Q3/
2005
Q4/
2005
Q1/
2006
Q2/
2006
Q3/
2006
Q4/
2006
Q1/
2007
Q2/
2007
Q3/
2007
Q4/
2007
Q1/
2008
Q2/
2008
Q3/
2008
Q4/
2008
Q1/
2009
Q2/
2009
Q3/
2009
Q4/
2009
Q1/
2010
Q2/
2010
Q3/
2010
Q4/
2010
Q1/
2011
H1/
2011
Q3/
2011
Quest for Growth - Resultaten per kwartaal
Q3 2011 results and performance Quest for GrowthQuarterly results
21
NAV compared to Market Indices at 30 September 2011Q3 2011 results and performance Quest for Growth
-13.40%
-11.19%
-6.79%
-9.90%
-15.71%
-10.99%
-17.11%-17.99%-20%
-15%
-10%
-5%
0%
5%
10%
15%
Since June 30th 2011 Since December 31st 2010
Performance of Quest for Growth NAVand market indices to September 30th 2011
QfG Net Asset Value
Nasdaq (in Euro)
New Markets 50
DJ STOXX 600 (in Euro)
22
Q3 2011 results and performance Quest for GrowthAdded value per sector
23
Results of currency hedge since the beginning of the fiscal yearQ3 2011 results and performance Quest for Growth
-500,000
-300,000
-100,000
100,000
300,000
500,000
700,000
900,000
jan 11 feb 11 mrt 11 apr 11 mei 11 jun 11 jul 11 aug 11 sep 11 okt 11 nov 11 dec 11
EU
R
24
Share price: Total shareholders returnQ3 2011 results and performance Quest for Growth
25
Q3 2011 results and performance Quest for GrowthShare price: Discount to Net Asset Value: 37.40%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
Average discount of Belgian investment companies (Source: KBC Securities)
Discount Quest for Growth
Discount of Quest for Growth andBelgian investment companies
26
Q3 2011 results and performance Quest for GrowthPortfolio composition and market cap at 30/09/2011
€ 0
€ 10,000,000
€ 20,000,000
€ 30,000,000
€ 40,000,000
€ 50,000,000
€ 60,000,000
€ 70,000,000
€ 80,000,000
€ 90,000,000
€ 100,000,000
Cash +Other net assets
Quoted portfolio Unquoted portfolio Venture funds Market cap
27
Q3 2011 results and performance Quest for GrowthDistribution of the portfolio by sector at September 30th 2011
Software &Services27.5% Electrical &
Engineering16.4%
Pharma &Biotech14.2%
Funds &DiversifiedCompanies
16.9%
TechnologyHardware
9.4%Materials
5.5%
Other sectors3.4%
Health CareEquipment &
Services4.6%
Semiconductors2.2%
28
Q3 2011 results and performance Quest for GrowthDistribution of the portfolio by country at Sep 30th 2011
Belgium30.7%
Germany12.5%
Netherlands21.3%
United Kingdom12.6%
Switzerland2.0%
France8.9%
Austria3.9%
Israel3.7%
Ireland4.1% US
0.3%
Portugal0.1%
29
Agenda
Introduction
Q3 2011 results and performance Quest for Growth
Comments on unquoted portfolio
Comments on quoted portfolio
Questions and Answers
30
Depreciations for a total amount of € 1,400,000 not directly attributed to underlying companies
Comments on unquoted portfolio
31
Comments on unquoted portfolioCartagenia
32
Comments on unquoted portfolioSphere Medical announces intention to float on AIM
33
• 29/6/2011: Clear2Pay acquires Lexcel (US) to widen global footprint and strengthen portfolio of test solutions.
Lexcel Solutions provides payment testing software and services to third-party payment transaction processors, debit and credit networks, financial institutions, retailers, ATM/POS manufacturers and government organizations. Lexcel’s expertise and test solutions along with Clear2Pay’s Integri-branded test product range will create one of the most robust end-to-end testing platforms in the marketplace.
• Clear2Pay has furthermore announced additional client and project wins in the past quarter:
23/8/2011: Clear2Pay announced that EMVCo, the EMV standards body owned by American Express, JCB, MasterCard and Visa, has qualified its Integri EMV Contactless Card Type Approval Level 1 Test Suite, Version 1.0.4.25/8/2011: Clear2Pay announced that it is supporting ITSO, the government-backed, not-for-profit organisation which defines and develops the UK-wide technical specification for smart ticketing, with the implementation of a Certification Centre in the United Kingdom. Clear2Pay will also provide further consultancy services to ITSO and deliver Integri Test Solutions to their vendor community.19/9/2011: Clear2Pay and Systar (Euronext Paris ISIN: FR0000052854-SAR) , the leading Business Activity Monitoring (BAM) solution provider, announce the first in a series of BAM solutions for Clear2Pay customers.
• Clear2Pay was recognised as leading global financial technology player in FinTech100.
12/10/2011: At the Global FinTech 2011 Award ceremony at the BAI Retail Delivery conference in Chicago, Clear2Pay received a recognition for ranking 81st on the list of financial technology companies that were judged according to their global revenues – attesting to the company’s stability and relevance to the industry. With this position Clear2Pay is the highest non-US based newcomer in the ranking with a full 100% revenue base in the financial services sector.
Comments on unquoted portfolioClear2Pay
34
Agenda
Introduction
Q3 2011 results and performance Quest for Growth
Comments on unquoted portfolio
Comments on quoted portfolio
Questions and Answers
35
Equity market environmentStrong correction in Q3, most pronounced in Europe
source: Factset, Quest Management
2011 stock market performance Europe versus US
STOXX 600: -18%STOXX Small: -21%DAX: -20%S&P500 in €: -11%
36
Equity market environmentUS economy slowing, but ISM not in « recession territory »
source : ISM, NBER, Bloomberg, Quest Management
ISM Manufacturing Index & US recessions (NBER)
37
Equity market environmentGerman economy: 2000 / 2008 or 1995 / 1998 / 2005 ?
Source: IFO, Bloomberg, Quest Management
German IFO indices
= recession = no recession
38
Equity market environmentOutlook?
Source: Commerzbank 8/9/2011
DAX evolution in bear markets (before/after DAX falls below 200-d average)
39
Portfolio quoted equityNet exposure quoted equities
40
Portfolio quoted equityFinancial strength of portfolio companies further improved
30-Sep-11 ptf. cos. ex biotech companies % NAV
FCF 2011e negative 2 1 Docdata 1%
FCF 2012e negative 1 0
net debt/ebitda 11e > 2.5 0 0
net debt/ebitda 11e > 2 0 0
net debt & FCF 11e negative 0 0
net cash at end 2011e 11 10
total portfolio companies 25 24
31-Dec-10 ptf. cos. ex biotech companies % NAV
FCF 2010e negative 2 1 Phoenix Solar 1%
FCF 2011e negative 1 0 0%
net debt/ebitda 10e > 2.5 1 1 Econocom 1%
net debt/ebitda 10e > 2 2 2 Econocom, KPN 3%
net debt & FCF 11e negative 0 0 0%
net cash at end 2010e 12 11
total portfolio companies 26 25
31-Dec-09 ptf. cos. ex biotech companies % NAV
FCF 2009e negative 5 2 S2M, Vestas 3%
FCF 2010e negative 4 1 S2M 2%
net debt/ebitda 09 > 2.5 1 1 Centrotec 1%
net debt/ebitda 09 > 2 2 2 Centrotec, TKH 4%
net debt & FCF 10e negative 1 1 S2M 2%
net cash at end 2009e 14 11
total portfolio companies 28 25
41
Portfolio quoted equity Important transactions 3rd quarter 2011
IN OUT INCREASE REDUCTIONSchaltbau KPN EVS United Drug
Pfeiffer Vacuum
Melexis Roche Unit4 UmicoreWacker Chemie SMA Solar
Hewlett-Packard Melexis AccellAndritz
JULY
AUGUST
SEPTEMBER
42
Portfolio quoted equity Investments in large caps reduced
43
Portfolio quoted equity Large caps KPN, Roche & HP sold with mixed results
source : Bloomberg
44
Portfolio quoted equity Profitable sale of Pfeiffer Vacuum
source : Bloomberg
45
Portfolio quoted equity Introduction Schaltbau
source : Factset
Mkt. Cap. P/ENet debt/
Ebitdam EUR 12m fwd 2011 07/12 2011
Schaltbau 131 7.3 30% 18% 1.7Company
EPS growth
46
Portfolio quoted equity Introduction Melexis
source : Factset
Mkt. Cap. P/ENet debt/
Ebitdam EUR 12m fwd 2011 07/12 2011
Melexis 398 8.1 ‐7% 7% 0.3Company
EPS growth
47
Portfolio quoted equityTop 10 holdings
country sector/activity% NAV 30/9/11
Nemetschek Germany architecture-engineering-construction (AEC) software 4.2%
Imtech Netherlands technical services in electrical & mechanical engineering 4.0%
Arcadis Netherlands engineering consultancy 3.9%
United Drug Ireland healthcare services 3.7%
EVS Belgium digital image-processing systems for TV broadcasters 3.6%
Andritz Austria plant engineering for hydro power, pulp & paper, ... 3.5%
Unit4 Netherlands business software 3.4%
Umicore Belgium materials technology 3.1%
Econocom Belgium IT infrastructure management 2.2%
Teva Israel generic and branded pharmaceuticals 2.1%
48
Portfolio quoted equityQ1-3 quoted portfolio down less than European markets
2011 Q1-3 portfolio company returns in l.c., excluding stocks introduced/removed during 2011
source: Bloomberg, Quest Management, QfG quoted (e) is estimate excluding costs and cash
49
Agenda
Introduction
Q3 2011 results and performance Quest for Growth
Comments on unquoted portfolio
Comments on quoted portfolio
Questions and Answers
50
Thank you for your attention!