Analyst Report Bank Degroof - Quest for Growth

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31 December 2009 Financial Services Belgian Holding Companies Financial Services Holding & portfolio i f i Analyser Holding & portfolio companies performance overview 260 vvdsvdvsdy 240 220 200 180 160 140 120 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. Page 2 of 3 www.degroof.be Degroof Belgian Analyser 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. Page 3 of 3 www.degroof.be Degroof Belgian Analyser
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Analyst Report Bank Degroof - Quest for Growth

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