Analyst Report Bank Degroof - Quest for Growth

Bank Degroof Belgian Analyser
31 December 2009
“The Holding Company”
BEL 20 -0.60% Euronext 100 -0.60% EuroStoxx 50 -0.86% S&P 500 0.02%
BEL 20 INDEX
BELGIAN STOCK MARKET
% Change
-1d
% Change -
1w
% Change
-1m
Price
(EUR)
% Change
-1d
% Change
-1w
% Change
-1m
Price
(EUR)
Yesterday's 5 best
Yesterday's 5 best
CNP/NPM 1.42 2.31 4.01 37.18 OPTION 17.14 28.13 -20.00 0.82
UMICORE 1.22 1.86 4.92 24.12 DUVEL 2.96 13.07 11.59 54.00
TELENET GROUP 1.21 2.12 9.65 19.31 ZETES 1.86 0.68 2.37 16.40
ANHEUSER-BUSCH INBEV 1.05 2.85 8.00 36.51 ATENOR 1.84 1.26 1.46 35.44
GDF-SUEZ 0.97 1.80 5.87 30.22 CNP/NPM 1.42 2.31 4.01 37.18
Yesterday's 5 worst
Yesterday's 5 worst
COFINIMMO -0.81 -0.87 -1.04 96.66 ECODIS -16.67 0.00 -28.57 0.10
MOBISTAR -0.52 0.32 2.51 48.05 PINGUINLUTOSA -3.37 -3.91 -1.94 8.60
DELHAIZE -0.48 -0.54 4.88 53.49 MELEXIS -2.36 -0.45 0.30 6.62
DEXIA -0.45 1.97 -11.02 4.45 QUEST FOR GROWTH -2.29 0.64 7.57 4.69
FORTIS -0.38 0.38 -7.98 2.63 FLUXYS -2.20 -2.20 3.01 2,225.00
RECENT RATING CHANGES
BEL20 vs. Euro Stoxx50 Index (relat. 1 month)
New Previous Change date
110
BOIS SAUVAGE Accumulate Hold 30 Dec 09
PORTHUS Rating Suspended Buy 15 Dec 09
EXMAR Accumulate Hold 02 Dec 09
FLORIDIENNE Accumulate Buy 01 Dec 09
FLUXYS Hold Accumulate 23 Nov 09
FORTIS Accumulate Hold 20 Nov 09
BEKAERT Accumulate Hold 13 Nov 09
SPECTOR GROUP Hold Reduce 12 Nov 09
RTL GROUP Accumulate Hold 10 Nov 09
KBC ANCORA Hold Reduce 02 Nov 09
105
100
95
01/12
02/12
03/12
04/12
07/12
08/12
09/12
10/12
11/12
14/12
BEL20 Index
15/12
16/12
17/12
18/12
21/12
Euro Stoxx50 Index
22/12
23/12
24/12
28/12
29/12
30/12
* Due to technical reasons, data in the table above are not up to date.
before printing this document, think about the environment.
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Please refer to important disclaimer on the last page

31 December 2009
Financial Services
Belgian Holding Companies
Financial Services Holding & portfolio
i f i
Analyser
Holding & portfolio companies performance overview
260 vvdsvdvsdy
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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
---------- DJ Stoxx Financial Services,
DJ Stoxx TMI rebased on sector
Analyst(s):
Hans D'Haese Bank Degroof
hans.dhaese@degroof.be
+32 (0) 2 287 9223
mont h e
The facts: Over 2009, holding companies’ share prices overall outperformed
the Belgian stock market, with an average performance of 33.4% (unweighted)
compared to +31.5% for the BEL20 index and +27.6% YTD for the Belgian All
shares return index.
Our analysis: Share price evolution as such can not be compared between the
holding companies, as some did not pay any dividends at all (eg.
RHJ International, Quest for Growth…), while others traditionally pay rather high
dividends (eg. Gimv, Solvac…). We notice that the average discount has increased
from 28% some 12 months ago to 29% at present. However, when excluding
KBC Ancora, the single-asset company which traded at a small premium
in the midst of the financial crisis one year ago (it is only invested in the at the
time troublesome KBC Group), the overall discount actually has slightly decreased
(from slightly above 30% to below 29%).
Share NAV / Disc. Avg Disc.
Company
Evol. Evol. Evol.
price share end disc. end
name
1 m 3 m 1 Yr
(EUR) (EUR) 2009 2009 2008
Ackerm. & van H. 52.4 63.8 17.9% 22.0% 41.8% 3.0% 5.3% 44.0%
KBC Ancora 16.2 24.3 33.2% -4.7% 18.7% -2.7% -16.9% 32.8%
Auximines 500.0 545.0 8.2% 11.3% 11.8% -2.9% 0.0% 38.9%
Bois Sauvage 168.0 258.1 35.6% 35.4% 44.5% 1.8% 3.1% 10.7%
Brederode 17.0 26.1 34.8% 32.7% 37.1% 1.5% 2.7% 33.3%
CNP/NPM 37.4 49.8 25.0% 21.2% 26.5% 6.6% 0.6% 7.4%
GBL 66.2 92.8 28.8% 27.8% 27.2% 9.0% 4.8% 16.3%
Gimv 36.5 43.3 15.7% 17.8% 34.7% 3.5% -0.5% 17.7%
Luxempart 221.4 332.4 33.4% 34.6% 34.5% -0.3% 4.4% 10.7%
Quest for Growth 4.8 7.2 33.3% 39.0% 44.1% 12.7% 14.9% 52.1%
RHJ International 5.3 9.4 43.2% 58.0% 60.5% 7.9% 6.4% 52.6%
Sofina 68.0 95.8 29.0% 33.6% 38.0% 9.6% 4.5% 41.8%
Solvac 81.6 120.4 32.3% 22.5% 20.2% -0.5% 0.7% 23.6%
Fin. de Tubize 24.3 37.1 34.4% 36.1% 49.4% -0.9% 9.3% 85.7%
Henex 38.9 56.4 31.1% 30.6% 37.2% 1.7% 7.4% 23.5%
Average 29.1% 27.9% 24.8% 3.3% 3.1% 33.4%
BEL20 3.7% 1.0% 31.5%
Source: Company data, ESN – Bank Degroof Research
Conclusion & Action: Our favourite Belgian holding companies (read: at present
most attractively valued and with the potential for discount contraction or
unlocking hidden value in the near future) remain:
• RHJ International: BUY – in transformation phase from a diversified
holding company, mainly exposed to automotive, to a merchant bank,
• Financière de Tubize: BUY – see Bank Degroof Research’s investment
case for UCB, and
• Gimv: ACCUMULATE – at present taking advantage of more attractive
prices and a better market environment for cash-rich private equity investors.
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Please refer to important disclaimer on the last page

Bank Degroof Belgian Analyser
31 December 2009
Agenda
06-Jan-09 QUEST FOR GROWTH Detailed NAV update
07-Jan-10 VAN DE VELDE FY results Sales announcement
11-Jan-10 SOLVAY 1H Ex-dividend date
14-Jan-10 DELHAIZE FY results Sales announcement
14-Jan-10 SOLVAY 1H Dividend payment
15-Jan-10 ARSEUS 4Q09 Sales announcement
Bank Degroof acts as liquidity provider for: Aedifica, Atenor, Banimmo, Bois Sauvage, Duvel, Floridienne, GIMV, IBt,
Intervest Retail, IPTE, I.R.I.S., Kinepolis, Leasinvest, Luxempart, Montea, NewTree, PinguinLutosa, RealCo, Resilux, Sapec, Ter Beke and
Van de Velde.
Bank Degroof holds a significant stake in: Aedifica, Fountain and Proximedia
Bois Sauvage holds a significant stake in Bank Degroof
Bank Degroof direction and employees hold mandates in the following listed companies: Atenor, CFE, Cofinimmo, Brederode,
Bois Sauvage, Deceuninck, D'Ieteren, Emakina, Floridienne, FuturaGene, Lotus Bakeries, Proximedia, Recticel, Sipef, Ter Beke, Tessenderlo and
UCB.
Institutional equity sales team
Equity brokerage
Damien Crispiels +32 2 287 96 97 John Paladino +32 2 287 96 40
Bart Beullens +32 2 287 91 80 Laurent Delante +32 2 287 91 90
Laurent Goethals +32 2 287 91 85 Tanguy del Marmol +32 2 287 96 13
Pascal Magis +32 2 287 97 81 Frédéric Lebrun +32 2 287 97 62
Peter Rysselaere +32 2 287 97 46 Robin Podevyn +32 2 287 91 82
Stéphane Van Nimmen* +32 2 287 97 72 Christian Saint-Jean +32 2 287 97 80
Institutional bond sales team
Derivatives brokerage
Peter Deknopper +32 2 287 91 22 Mohamed Abalhossain +32 2 287 95 10
Fabrice Faccenda +32 2 287 91 81 Olivier-Pierre Morrot +32 2 287 96 18
Charles Feiner* +32 2 287 91 83
Structured products
Equity research
Jeroen De Keer +32 2 287 93 54 Preben Bruggeman +32 2 287 95 71
Gaëtan De Vliegher +32 2 287 91 88 Jean-Marie Caucheteux +32 2 287 99 20
Sébastien Fraboni +32 2 287 92 56 Hans D’Haese +32 2 287 92 23
Edouard Nouvellon +32 2 287 93 23 Bernard Hanssens +32 2 287 96 89
Siddy Jobe +32 2 287 92 79
Funds services Ivan Lathouders, CFA +32 2 287 91 76
Olivier Gigounon +32 2 287 91 84 Marc Leemans, CFA +32 2 287 93 61
Thomas Palmblad +32 2 287 93 27 Thibaud Rutsaert, CFA +32 2 287 94 28
Fabio Ghezzi Morgalanti +32 2 287 92 72
Sven Van den Bogaert +32 2 287 93 06
* authorised agent Mail: firstname.lastname@degroof.be
All opinions and projections expressed in this document constitute the judgment of Bank Degroof as of the date of their publication and are subject to change without notice. Bank Degroof and/or
any of its subsidiaries may hold long/short positions in the securities referred to herein including derivative instruments related to the latter or may have business relations with the companies
discussed herein. This material is intended for the information of the recipient only and does not constitute an offer to subscribe or purchase any securities. Although they are based on data
which is presumed to be reliable and all while reasonable care has been taken to ensure they are derived from sources which are reliable, Bank Degroof has not independently verified such data
and takes no responsibility as to their accuracy or completeness and accepts no liability for loss arising from the use of the opinions expressed in this document. Local laws and regulations may
restrict the distribution of this document in other jurisdictions. Persons who enter in possession of this document should inform themselves about and observe any such restrictions. All
information presented in this document is, unless otherwise specified, under copyright of Bank Degroof. No part of this publication may be copied or redistributed to other persons or firms without
the written consent of Bank Degroof.
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