Quest for Growth NV — Earnings Release 2021

Apr 29, 2021

PRESS RELEASE / Regulated information

INVESTMENT MANAGER REPORT

QUEST FOR GROWTH Quarterly update 31 March 2021

SCHEDULE FOR PUBLICATION:

29 April 2021 / 5.40 PM press release available at www.questforgrowth.com

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

Results

Quest for Growth started the year in a strong position: its net asset value rose by 8.1% in the first quarter. This achievement was due to profits in listed as well as unlisted participations. Net profit in the first quarter of 2021 was € 12.4 million (€ 0.74 per ordinary share), compared to a loss of € 27 million (€ -1.60 per ordinary share) during the first quarter of 2020.

With an increase of 7.4%, the share price rose in the first three months of 2021 somewhat less sharply than the net asset value. The discount of the price in relation to the net asset value therefore increased slightly to 29.3% at the end of March, from 28.9% at the end of 2020.

Market environment

Despite some weakness in the technology shares during the course of the quarter, the stock markets continued to perform well. The European stock market index STOXX Europe 600 Net Return rose by 8.2% in the first quarter of 2021. Small cap indices performed slightly less well. The European stock markets were led by cyclical sectors and those focussed on 'value', such as the automobile industry, banks and raw materials. Defensive sectors, such as the health sector, rose only slightly higher.

Investments in listed companies

Despite the sector trends which weren't very favourable, the portfolio of listed shares achieved a sound result with an estimated performance of about 7%. Pharmagest (-14%) and Kerry (-10%) were the biggest losers in the portfolio during the first quarter. Positive highlights were Accell (+52%), CEWE (+30%) and Steico (+27%). Accell profited from the strong growth in the market for bicycles and increased its revenue by 17% last year. Steico, too, saw its sales rise by 10% in the crisis year of 2020, and it expects further growth in 2021. CEWE surprised the market with an increase in operating profit of almost 40%, while analysts had expected a stable to lower result.

LPKF, one of the more volatile technology shares in the portfolio, was fully sold in January. Since its purchase in May of last year, the share has risen by approximately 40%, more than twice as much as the increase in the stock market indices during the same period. Partial profit-taking also took place on shares such as CEWE, Pharmagest, Steico and Umicore. Melexis was purchased on the basis of price weakness, after the placement of shares by the majority shareholder.

Investments in unlisted companies

Quest for Growth made a new investment of € 1.5 million in REIN4CED, a company located in Leuven. This is a co-investment with the Capricorn Sustainable Chemistry Fund, a venture capital fund in which Quest for Growth also invests. Quest for Growth also made follow-up investments in NGData and Scaled Access co-investments with Capricorn ICT Arkiv.

Investments in venture capital funds

The Capricorn Health-tech Fund made a follow-up investment in Mainstay Medical. This company has completed a financing round of USD 108 million to, among other aims, support the commercial launch of ReActiv8® in the United States and its expansion in Europe and Australia. In February, Diagenode was acquired by the American Hologic for € 130 million. Together with other positive evolutions in the Capricorn Health-tech Fund, this had a positive impact of more than € 1 million on the results of Quest for Growth. With the sale of Diagenode, the Capricorn Healthtech Fund wants to implement a capital reduction by which Quest for Growth will receive approximately € 1.6 million.

Capricorn ICT Arkiv made several follow-up investments in current portfolio companies.

The Capricorn Sustainable Chemistry Fund made two new investments in the first quarter of 2021: Trilium Renewable Chemicals and REIN4CED. Trillium Renewable Chemicals is ready to take on the fast-growing market segment of renewable raw materials by commercialising the technology which was invented by Southern Research. This technology converts renewable raw materials, like sugar or glycerol, into chemical products such as acrylonitrile, propylene glycol and acrylic acid. These products are currently produced from oil and gas and are used to make popular consumer and industrial goods, such as clothing, toys, car parts, sports equipment, paint, soap, and other valuable materials. REIN4CED is an innovative Belgian manufacturing company. In its production unit in Leuven, REIN4CED produces impact-resistant, lightweight bicycle frames for brands which, besides top performances, also want to offer their customers more safety and durability. The new generation of carbon-fibre bikes are produced on an automated line and make use of thermoplastic composite materials and the characteristic shockresistant 'FEATHER' material from REIN4CED. This innovative company will be the first company to produce carbon frames in Europe for commercial use and, in the process, be able to pride itself on key logistics advantages and an increasingly flexible and effective production chain.

Valuation adjustments of unlisted companies and venture capital funds

Positive evolutions provided adjustments to the values in the segments of unlisted companies and venture capital funds in March. Among others, an amount of approximately € 3 million or € 0.18 per share was added to the net asset value at 31 March 2021 in the section 'Value adjustments of unlisted companies and venture capital funds'. Additional notes about these evolutions will be given as soon as more information is available and may be made public.

Outlook

The increase in the cash position in the first quarter was prompted by high values in the stock market, together with the expected capital reduction of approximately € 6.7 million (€ 0.40 gross per share) at the end of June. The portfolio of unlisted investments will be further expanded, while the strategy which was adjusted several years ago starts to deliver positive results.

VALUATION QUEST FOR GROWTH

Stock Price	Net asset value/share
31/03/2021	31/03/2021	31/12/2020	31/12/2019
6.98 EUR	9.88 EUR	9.14 EUR	8.12 EUR
Number of shares	16,774,226	16,774,226	16,774,226
Discount of the share price versus Net Asset Value: 29.33%

Source: Estimate by Capricorn Partners NV

EVOLUTION SHARE PRICE AND NET ASSET VALUE

FINANCIAL ASSETS BREAKDOWN AT 31 MARCH 2021

Shares quoted companies

Company	Sector / Market	Shares unquoted companies	Change since 31/12/2020	Currency	Share price	Valuation in €	in % of Net Asset Value
	Software & Services
CEWE STIFTUNG	Deutsche Börse (Xetra)	64,476	-5,156	€	120.4000	7,762,910	4.69%
PSI SOFTWARE	Deutsche Börse (Xetra)	131,283	-12,500	€	26.8000	3,518,384	2.12%
SAP	Deutsche Börse (Xetra)	26,200	0	€	104.4200	2,735,804	1.65%
WOLTERS KLUWER	Euronext Amsterdam	54,000	0	€	74.1200	4,002,480	2.42%
	Technology Hardware
B&C SPEAKERS	Borsa Italiana	165,004	0	€	11.5000	1,897,546	1.15%
LEM HOLDING	SWX Swiss Exchange	2,096	-125	CHF	1.826.0000	3,457,359	2.09%
NEDAP	Euronext Amsterdam	93,148	-8,950	€	61.6000	5,737,917	3.46%
TKH GROUP	Euronext Amsterdam	160,070	0	€	40.9200	6,550,064	3.95%
	Semiconductors
MELEXIS	Euronext Brussels	36,289	6,000	€	90.2500	3,275,082	1.98%
	Healthcare Equipment & Services
FRESENIUS	Deutsche Börse (Xetra)	86,000	0	€	37.9800	3,266,280	1.97%
NEXUS	Deutsche Börse (Xetra)	78,764	0	€	54.8000	4,316,267	2.61%
PHARMAGEST INTERACTIVE	Euronext Paris	44,952	-4,000	€	95.3000	4,283,926	2.59%
STRATEC	Deutsche Börse (Xetra)	32,495	-1,000	€	115.2000	3,743,424	2.26%
	Pharma & Biotech
ROCHE	Euronext Brussels	14,500	0	CHF	305.4500	4,000,926	2.42%
TUBIZE	Euronext Brussels	61,588	3,000	€	84.2000	5,185,710	3.13%
	Electrical & Engineering
ABO WIND	Deutsche Börse (Xetra)	110,000	0	€	47.8000	5,258,000	3.17%
ACCELL GROUP	Euronext Amsterdam	105,000	20,000	€	39.3500	4,131,750	2.49%
DATRON	Deutsche Börse (Xetra)	119,000	0	€	9.2500	1,100,750	0.66%
JENSEN GROUP	Euronext Brussels	152,876	0	€	26.4000	4,035,926	2.44%
TECHNOTRANS	Deutsche Börse (Xetra)	127,582	-11,164	€	25.5500	3,259,720	1.97%
	Materials
GURIT	SWX Swiss Exchange	2,181	-150	CHF	2.400.0000	4,728,455	2.85%
KERRY GROUP	Euronext Dublin	39,000	6,500	€	106.7000	4,161,300	2.51%
MAYR-MELNHOF KARTON	Deutsche Börse (Xetra)	15,000	0	€	175.4000	2,631,000	1.59%
STEICO	Deutsche Börse (Xetra)	97,035	-24,457	€	75.6000	7,335,846	4.43%
UMICORE	Euronext Brussels	65,000	-15,000	€	45.2300	2,939,950	1.77%
						103,316,777	62.36%

Shares unquoted companies

Company	Sector / Market	Change since 31/12/2020	Currency	Valuation in €	in % of Net Asset Value
HALIODX	Pharma & Biotech		€	3,915,900	2.36%
MIRACOR	Healthcare Equipment & Services		€	2,849,932	1.72%
				6,765,832	4.08%

Co-investments Capricorn Funds		Change since 31/12/2020	Currency	Valuation in €	in % of Net Asset Value
C-LECTA	Materials		€	3,825,262	2.31%
ECLECTICIQ	Software & Services		€	2,000,000	1.21%
NGDATA	Software & Services	102,056	€	1,297,594	0.78%
PROLUPIN	Materials		€	1,947,637	1.18%
REIN4CED	Materials	1,499,997	€	1,499,997	0.91%
SCALED ACCESS	Software & Services		€	368,699	0.22%
SENSOLUS	Software & Services		€	690,939	0.42%
				11,630,127	7.02%

Investments in venture funds

	Change since 31/12/2020	Currency	Beurskoers	Valuation in €	in % of Net Asset Value
CAPRICORN PARTNERS
CAPRICORN CLEANTECH FUND		€	31/03/2021	1,810,515	1.09%
CAPRICORN DIGITAL GROWTH FUND		€	31/03/2021	3,184,800	1.92%
CAPRICORN HEALTH-TECH FUND		€	31/03/2021	8,867,917	5.35%
CAPRICORN ICT ARKIV		€	31/03/2021	5,102,668	3.08%
CAPRICORN SUSTAINABLE CHEMISTRY FUND	1,000,000	€	31/03/2021	6,939,393	4.19%
THIRD PARTY FUNDS
CARLYLE EUROPE TECHNOLOGY PARTNERS II	-8,432	€	31/12/2021	66,240	0.04%
LIFE SCIENCES PARTNERS III		€	31/12/2020	348,000	0.21%
LIFE SCIENCES PARTNERS IV		€	31/12/2021	766,000	0.46%
				27,085,533	16.35%
Total Financial Assets - Shares		€		148,798,269	89.82%
Change in valuation in unquoted companies and venture funds		€		3,034,050	1.83%
Total Financial Assets – Shares after depreciation		€		151,832,319	91.65%

Amounts receivables companies

COMPANY	Face value in currency	Change since 31/12/2020	Currency	Valuation in €	in % of Net Asset Value
LOAN NOTES
SCALED ACCESS	458,000	358,000	€	458,000	0.28%
				458,000	0.28%
COMMERCIAL PAPER
PURATOS	1,500,000		€	1,499,987	0.91%
PURATOS	1,200,000		€	1,199,989	0.72%
				2,699,976	1.63%
Total Financial Assets - Amounts receivable			€	3,157,976	1.91%
Total Financial Assets			€	154,990,295	93.56%
Cash			€	10,169,291	6.14%
Other Net Assets			€	506,001	0.31%
Quest for Growth - Ordinary shares			€	-	0.00%
Total Net Asset Value			€	165,665,586	100.00%

PORTFOLIO COMPOSITION AND MARKET CAPITALISATION AT 31 MARCH 2021

TOTAL SHAREHOLDERS RETURN (SINCE 31/03/2011)

QUEST FOR GROWTH RESULTS FROM 1 JANUARY 2011 UNTIL 31 MARCH 2021

ADDED VALUE PER SHARE

(JANUARY – MARCH 2021)

ADDED VALUE PER SEGMENT PER SHARE

PROFILE

QUEST FOR GROWTH, is a privak/pricaf, a public alternative investment fund (AIF) with fixed capital under Belgian law, managed by Capricorn Partners NV. The diversified portfolio of Quest for Growth is for the most part invested in growth companies listed on European stock exchanges, in European unquoted companies and in venture capital funds. Quest for Growth focuses on innovative companies in areas such as digital technologies (ICT), technologies for the healthcare sector (Health‐tech) and clean technology (Cleantech). Quest for Growth has been listed on Euronext Brussels since 23 September 1998.

CONDENSED INTERIM FINANCIAL STATEMENTS

CONDENSED STATEMENT OF FINANCIAL POSITION

In EUR	Situation at	31 March 2021	31 December 2020
ASSETS
Cash and cash equivalents		10,169,291	7,581,758
Short term debt securities		2,699,976	2,699,977
Trade and other receivables		193,432	192,002
Dividends receivable		351,630	328,430
Financial assets
Financial assets at FVTPL – equity securities		151,832,319	142,401,510
Financial assets at FVTPL – debt securities		458,000	100,000
Other current assets		2,766	7,210
Total assets		165,707,414	153,310,887
LIABILITIES AND EQUITY
Share capital		145,399,326	145,339,326
Unavailable reserve		7,929,733
Accumulated result		0	-9,154,588
Net result for the period		12,396,527	17,084,320
Total equity attributable to shareholders		165,665,586	153,269,059
Current tax payable		9	9
Other liabilities		41,819	41,819
Total liabilities		41,828	41,828
Total equity and liabilities		165,707,414	153,310,887

CONDENSED STATEMENT OF PROFIT OR LOSS

	For the financial year	31 March	31 March
In EUR	ended	2021	2020
Net realised gains / (losses) on financial assets		2,193,179	-1,943,264
Net unrealised gains / (losses) on financial assets		10,606,964	-24,393,229
Dividends income		120,107	0
Interest income		-1,902	-2,711
Net realised foreign exchange gains / (losses)		-1,297	-36,081
Net unrealised foreign exchange gains / (losses)		673	35,842
Total revenues		12,917,726	-26,339,444
Other operating income		0	0
Other operating loss		0	0
Total operating revenues		12,917,726	-26,339,444
Fee Management Company		-361,131	-364,146
Custodian fees		-12,201	-10,699
Director's fees		-27,650	-19,773
Levy on investment funds		0	-125,971
Other operating expenses		-101,825	-52,976
Total operating expenses		-502,708	-573,564
Profit from operating activities		12,415,018	-26,913,008
Net finance expense		-18,016	-1,026
Profit / (Loss) before income taxes		12,396,527	-26,914,034
Withholding tax expenses		0	0
Other incomes taxes		0	0
Profit / (Loss) for the period		12,396,527	-26,914,034

Earnings per share (EPS)
Basic & diluted average number of shares outstanding	16,774,226	16,774,226
Basis & diluted EPS for ordinary shares*	0.74	-1.60

* Earnings per share are calculated without taking into account the different dividend rights belonging to the different share classes.

SUPPLEMENTARY INFORMATION

Board of directors	Mr Antoon De Proft, chairman and independent director
	Mr Michel Akkermans, director
	Mr René Avonts, director
	Mr Philippe de Vicq de Cumptich, director and executive officer
	Mr Jos Clijsters, director
	Dr Jos B. Peeters, director
	Ms Liesbet Peeters, director
	Prof. Regine Slagmulder, independent director
	Mr Paul Van Dun, independent director
	Ms Lieve Verplancke, independent director
Audit committee	Prof. Regine Slagmulder, chairman
	Mr René Avonts
	Mr Paul Van Dun
	Ms Lieve Verplancke
Executive officers	Mr Philippe de Vicq de Cumptich, director
	Mr Yves Vaneerdewegh, member of the Executive Committee of Capricorn Partners
Management company	Capricorn Partners NV, Lei 19 box 1, B-3000 Leuven
Statutory auditor	Mr Philippe de Vicq de Cumptich, director Mr Yves Vaneerdewegh, member of the Executive Committee of Capricorn Partners
Depository bank	BELFIUS BANK BELGIË, Pachecolaan 44, B-1000 Brussels
Incorporation	9 June 1998
Official listing	23 September 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 on 29 Juli 2021
Estimated net asset value	published every first Thursday of the month on the website www.questforgrowth.com

Closed-end private equity funds, submitted to the Royal Decree of 10 July 2016 on alternative institutions for collective investment in unquoted and growth companies, are an investment instrument designed to offer individual investors a suitable framework in which to invest in unquoted and growth undertakings.

The privak is under the supervision of the Financial Services and Market Authority (FSMA) and is subject to specific investment rules and obligations as regards the distribution of divide

Investment rules

• 25% or more of the portfolio must be invested in unquoted companies;

• 70% or more of the portfolio (qualified investments) must be invested in
  • unquoted companies; • quoted growth companies with a market capitalisation of less than 1.5
  • billion euros; • other alternative investment funds with an investment policy similar to that
  • of the private equity fund.

A private equity fund may not invest more than 20% of its portfolio in a single undertaking.

QUEST FOR GROWTH NV

privak, public alternative investment fund with fixed capital pursuant to Belgian law

Lei 19 box 3 - B-3000 Leuven

Telephone: +32 (0) 16 28 41 28

quest@questforgrowth.com www.questforgrowth.com