Quest for Growth NV — Earnings Release 2013

Jan 23, 2014

Press release Leuven / 23 January 2014 / 5.40 PM

Regulated information. This press release contains information subject to the European transparency requirements imposed on listed companies.

Quest for growth

Schedule for publication

on 23 January 2014

5.40 PM press release available at www.questforgrowth.com

on 24 January 2014 11.00 AM press & analyst meeting, Capricorn Venture Partners NV, Lei 19, 3000 Leuven

Privak, fixed capital investment company established under Belgian Law

Annual results Quest for Growth

QUEST FOR GROWTH MADE A PROFIT OF € 18.5 MILLION IN 2013. THE BOARD OF DIRECTORS PROPOSES A NET DIVIDEND OF € 1.15 PER ORDINARY SHARE

Key facts:

• • Return on equity per share: + 17 % since 31 December 2012
• • Net Asset Value per share at December 31st 2013: € 10.87 (December 31st 2012: € 9.26)
• • Net profit for the fiscal year: + € 18,474,284 (+ € 1.60 per share) against a profit of + € 15,701,811 (+ € 1.36 per share) for the previous fiscal year
• • Share price at December 31st 2013: € 8.21 (December 31st 2012: € 5.70) or a increase of 44 %
• • Discount of the share price versus Net Asset Value: 24.4 % at December 31st 2013 (38.4 % at December 31st 2012)
• • The board proposes to the AGM a gross dividend of € 1.18 per ordinary share (net dividend of € 1.15 per ordinary share)

Results

2013 was once again an excellent year for Quest for Growth with an increase of the net asset value by 17% to ¤ 10.87 per share. The net profit made in 2013 amounts to ¤ 18.5 million (¤ 1.60 per share), to compare with a profit of ¤ 15.7 million (¤ 1.36 per share) in 2012. In the fourth quarter the net asset value increased by 8.2% which corresponds with a net profit of ¤ 9.5 million. The share price of Quest for Growth increased in 2013 by 44% to ¤ 8.21 per share. The discount of the share price versus the net asset value was 24% at the end of the year, compared to 38% on 31 December 2012.

Distribution of earnings

The Board of Directors proposes to the General Assembly of Shareholders to distribute the profit amounting to ¤15,440,141. This represents a gross dividend for ordinary shares of ¤ 1.18 per share (net: ¤ 1.15 per share). The balance of ¤ 88,518 will be carried forward to the next fiscal year. Subject to the General Assembly's approval the dividend will be paid on 27 March 2014.

Market environment

Despite many political and economic tensions most stock markets performed very strongly, without major corrections. The European stock market index DJ Stoxx 600 increased by 17%. American stocks performed even better with an increase of about 24% for the S&P500 index (converted to euro). Equities in emerging markets were notable losers. In spite of the good stock market sentiment the number of IPOs on European stock markets was limited, which illustrates that the environment for exits in venture capital remained difficult.

Investments in quoted companies

In the quoted portfolio the year was closed with an excellent result in the fourth quarter, bringing the performance of this part of the portfolio for the whole of 2013 to nearly 30%. On the one hand the number of stocks incurring negative returns was limited to five, namely Imtech, Umicore, Sphere Medical, Barco and Andritz. On the other hand high profits were registered for stocks such as Melexis (+86%), Nemetschek (+56%), Arcadis (+47%), Schaltbau (+51%) and LPKF (+113% until sale). In the fourth quarter profits were taken on LPKF and Galenica. Ablynx was introduced in the portfolio in December. Looking back at the entire year, Faiveley, Imtech, Teva, Sphere and LPKF were removed from the portfolio while Barco, Sartorius, Bertrandt, U-Blox and Ablynx were added.

Investments in unquoted companies

The direct investments in unquoted companies showed a slightly negative result in 2013 due to some depreciations. One exit was made with the sale of Syntaxin to Ipsen.

In December Quest for Growth seized the opportunity to co-invest one million dollar in FRX Polymers, a company producing environment-friendly flame retardants. A small participation was also acquired in Aliaxis, a Belgian unquoted company of which the shares are traded on the public auctions market in Brussels.

Venture capital funds

The profits realized through venture capital funds which sold participations largely compensated for the losses incurred on direct investments in unquoted companies mentioned above. The biggest profit was made through the sale of Waze to Google by Vertex III. In December the Carlyle Europe Technology Partners II Fund sold its participation in the German HR-software company P&I.

Through the Capricorn Health-tech Fund new participations have recently been taken in Trod Medical based in Leuven and iSTAR based in Isnes (Belgium), companies which both develop medical devices. Earlier in the year investments were made in Right Brain Interface and NG Data through the Capricorn ICT Arkiv Fund.

Outlook

Quest for Growth is pleased to offer its shareholders the prospect of a dividend payment again, after all losses carried forward from 2008 have been largely compensated for.

A better economic climate, increased valuations of shares and an improved stock market sentiment ultimately give a mixed picture for the stock markets in 2014. The result made on the quoted stocks in 2013 will be difficult to match in 2014. If the market environment remains positive, this could enhance the chances to realize exits in unquoted companies.

The General Assembly will take place on 20 March 2014 in Leuven.

Total shareholders return ( 31/12/2010 – 31/12/2013) Discount of the share price versus the net asset value until 31 December 2013

1, Balance sheet	2013 31 December	2012 31 December	2011 31 December	2010 31 December	2009 31 December	2008 31 December	2007 31 December	2006 31 December
ASSETS
Fixed assets	120,264,108	104,265,373	86,989,456	99,778,377	79,850,099	61,137,896	108,892,469	105,699,790
Formation expenses	0	0	0	0	0	0	0	0
Financial assets	120,264,108	104,265,373	86,898,456	99,778,377	79,850,099	61,137,896	108,892,469	105,699,790
Shares	106,950,253	100,625,585	79,492,057	93,078,608	78,033,562	59,198,500	108,028,068	104,733,291
Amounts receivable	13,313,854	3,639,788	7,497,399	6,699,769	1,816,537	1,939,396	864,401	966,499
Current assets	5,083,517	2,632,925	4,203,529	6,298,058	5,713,801	6,535,923	7,606,626	11,865,851
Amounts receivable in more than one year	666,305	0	0	885,932	0	0	0	185,804
Trade receivables	666,305	0	0	0	0	0	0	0
Other receivables	0	0	0	885,932	0	0	0	185,804
Amounts receivable within one year	70,187	689,618	1,165,102	98,934	399,726	235,277	298,014	0
Trade receivables	0		0	0	237,256	177	0	0
Other receivables	70,187	689,618	1,165,102	98,934	162,470	235,100	298,014	0
Short term investments	0	0	0	1,376,910	3,455,768	816,811	6,870,357	11,043,412
Own shares	0	0	0	1,376,910	1,205,768	816,811	1,702,806	1,093,412
Term deposits	0	0	0	0	2,250,000	0	5,167,551	9,950,000
Cash at bank and in hand	4,280,362	1,867,036	3,038,427	3,724,105	1,797,803	5,165,410	297,132	546,328
Deferred charges and accrued income	66,662	76,271	31,501	212,177	60,504	318,425	141,123	90,307
TOTAL ASSETS	125,347,624	106,898,298	91,224,485	106,076,435	85,563,899	67,673,819	116,499,095	117,565,641
LIABILITIES
Capital and reserves	109,837,261	106,803,118	91,101,307	106,009,655	85,441,572	67,365,307	115,769,735	95,943,007
Issued capital	109,748,742	109,748,742	109,748,742	109,748,742	109,748,742	109,748,742	109,748,742	89,942,195
Reserves	0	656,423	656,423	2,251,148	2,251,148	2,251,148	6,000,000	6,000,000
Reserves not available for distribution	0	0	0	1,376,910	1,205,768	816,811	1,702,806	1,093,412
Reserves available for distribution	0	656,423	656,423	874,239	1,045,380	1,434,337	4,297,194	4,906,588
Profit carried forward	88,518	0	0	0	0	0	20,993	812
Loss carried forward	0	(3,602,048)	(19,303,859)	(5,990,236)	(26,558,319)	(44,634,583)	0	0
Amount payable	15,510,364	95,180	123,179	66,779	122,328	308,512	729,359	21,622,634
Amounts payable within one year	15,478,430	43,405	105,882	66,291	69,648	80,253	729,359	21,614,063

2. Income statement	Fiscal year 2013	Fiscal year 2012	Fiscal year 2011	Fiscal year 2010	Fiscal year 2009	Fiscal year 2008	Fiscal year 2007	Fiscal year 2006
Operating income and charges
Gross operating income	18,769,640	16,549,688	(13,327,578)	21,373,611	19,136,134	(45,903,202)	3,096,848	22,750,915
Realised gains/losses on shares	15,008,104	822,772	1,975,022	14,229,612	(9,073,057)	(7,910,960)	3,489,436	22,887,740
Unrealised gains/losses on shares	3,468,769	15,799,482	(15,131,517)	7,108,393	28,305,578	(38,451,622)	(1,333,413)	401,662
Result from option transactions	80,840	46,758	60,200	254,920	54,090	68,553	(16,463)	(611,553)
Realised results from Forward currency rate agreements	236,355	(76,147)	(37,391)	(457,777)	(326,057)	752,579	824,850	(45,926)
Unrealised results from Forward currency rate agreements	(24,428)	(43,177)	(193,893)	238,462	175,579	(361,752)	132,438	118,991
Other operating charges	(1,994,093)	(1,988,074)	(1,904,226)	(1,973,725)	(2,281,376)	(2,688,514)	(2,616,901)	(2,074,225)
Management fee	(1,464,878)	(1,473,230)	(1,500,000)	(1,610,959)	(1,950,000)	(2,276,684)	(2,156,217)	(1,645,231)
Custodian fee	(52,926)	(44,011)	(45,323)	(43,940)	(29,871)	(43,820)	(67,015)	(59,036)
Statutory Auditors fee	(12,270)	(9,767)	(11,680)	(9,183)	(12,047)	(9,680)	(20,933)	(20,364)
Printing and publication costs	(75,552)	(101,118)	(76,974)	(64,155)	(68,663)	(122,038)	(148,219)	(122,808)
Annual tax on Collective Investment sche mes	(103,065)	(72,881)	(84,808)	(67,763)	(53,892)	(92,616)	(76,754)	(67,163)
Directors fees	(207,550)	(204,770)	(93,730)	(72,398)	(68,719)	(53,350)	(53,140)	(60,538)
Advisory fees	(7,049)	(19,645)	(17,852)	(34,683)	(22,219)	(14,731)	(22,024)	(16,797)
Accountancy	(0)	(0)	(0)	(0)	(0)	(0)	(16,200)	(16,200)
Others	(70,803)	(62,652)	(73,859)	(70,602)	(75,966)	(75,595)	(56,399)	(23,519)
Operating Profit/Loss	16,775,548	14,561,614	(15,231,804)	19,399,928	16,854,758	(48,591,716)	479,947	20,676,690
Financial income	1,648,886	1,646,024	1,770,100	1,394,583	1,025,963	1,621,451	1,527,626	1,184,793
Financial charges	49,749	(505,741)	148,442	(226,358)	195,616	(1,434,317)	(1,386,901)	(325,236)
Amounts written off (reversals) own shares*	(0)	(0)	217,816	171,141	388,957	(1,280,790)	(153,548)	(0)
Amounts written off (reversals) other cur rent assets	254,103	(383,871)	(0)	(0)	(0)	(0)	(0)	(0)
Capital increase costs	(0)	(0)	(0)	(0)	(0)	(0)	(698,722)	(0)
Others	(204,354)	(121,868)	(69,373)	(397,350)	(193,341)	(153,527)	(534,631)	(325,236)
Profit/Loss on ordinary activities, before taxes	18,474,183	15,701,897	(13,313,262)	20,568,153	18,076,337	(48,404,582)	620,672	21,536,246
Income taxes	(101)	(86)	(362)	(70)	(72)	154	(97)	(324)
Profit/Loss for the period, after taxes	18,474,284	15,701,811	(13,313,623)	20,568,083	18,076,265	(48,404,428)	620,575	21,535,923
Profit/Loss for the period, after taxes, per share	1.60	1.36	(1.15)	1.74	1.53	(4.11)	0.05	2.28

*Reversal of impairment on treasury shares before annulment on June 29th 2011

3. Profit distribution	Fiscal year 2013	Fiscal year 2012	Fiscal year 2011	Fiscal year 2010	Fiscal year 2009	Fiscal year 2008	Fiscal year 2007	Fiscal year 2006
Profit to be appropriated	14,872,236						621.387	21.540.280
Loss to be appropriated		(3,602,048)	(19,303,859)	(5,990,236)	(26,558,319)	(48,383,435)
Profit to be appropriated for the period	18,474,284	15,701,811		20,568,083	18,076,265		620,575	21,535,923
Loss to be appropriated for the period			(13,313,623)			(48,404,428)
Profit/loss brought forward	(3,602,048)	(19,303,859)	(5,990,236)	(26,558,319)	(44,634,583)	20,993	812	4,357
Transfers from capital and reserves	656,423					3,748,852
From reserves	656,423					3,748,852
Transfers to capital and reserves
To other reserves
Profit/loss to be carried forward	88,518	(3,602,048)	(19,303,859)	(5,990,236)	(26,558,319)	(44,634,584)	20,993	812
Profit to be carried forward	(88,518)						(20,993)	(812)
Loss to be carried forward		3,602,048	19,303,859	5,990,236	26,558,319	44,634,584
Distribution of profit	15,440,141						600,394	21,539,468
Dividends	15,440,141						600,394	21,539,468

4. Report of the statutory auditor

The statutory auditor, Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren – Réviseurs d'Entreprises, represented by Mr. Erik Clinck, has issued an unqualified audit opinion on the financial statements of the fiscal year 2013 and has confirmed that the accounting data included in this annual announcement does not include any apparent inconsistencies with the financial statements.

The annual financial report including the audited annual accounts, the annual report, the statement on the true and fair view of the annual accounts and the fair overview in the annual report by the responsible persons and the report of the Statutory Auditor shall be available as from February 15th 2014, on request at the registered office: Lei 19 box 3, 3000 Leuven, Belgium.

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