NextStage Announces Its Net Asset Value and H1 Results as at June 30, 2017

PARIS--(BUSINESS WIRE)--Regulatory News:

NextStage (Paris:NEXTS), an investment company listed on the Euronext Paris regulated market (ISIN: FR0012789386, Symbol: NEXTS), focused on long-term investments in mid-sized companies¹, is today announcing its results for the first half of 2017 as approved by the Supervisory Board at its meeting of 12 September, and its Net Asset Value as at 30 June 2017, under the chairmanship of Jean-François Sammarcelli. The statutory auditors, KPMG and RSM Paris, have audited the annual financial statements and confirmed the NAV.

• Continued growth of the NAV, notably thanks to appreciation of the investment portfolio
  • NAV² of €160.4 M as at 30/06/2017 (versus €156.8 M at 31/03/2017 and €96.4 M at 30/06/2016)
  • NAV per share³ of €110.55, a 2.3% increase over 31/03/2017, and +9.2% over 30/06/2016
• Net Income Group share (at 30/06/17) of €7.9 M (versus -€0.3 M at 30/06/2016)
• Increased rate and size of investments since the beginning of the year, while maintaining discriminating quality standards
• Annual investment goal for 2017 surpassed: currently ahead of schedule on the investment programme for 2017 with €42.4 M committed (as at 13/09/2017) of which €24.3 M have been invested since 1 January 2017
• Capital increase project on the Euronext Paris exchange to reinforce the company’s investment capacity over the coming months, subject to market conditions

Speaking on the occasion of this publication, Grégoire Sentilhes, Chairman of NextStage AM and CEO of NextStage, stated: "The first semester has established 2017 as a year dedicated to increasing our rate of investment, with an increase in our participation size, which exceeds 10 million euros. With Naturabuy and Oodrive, we have continued to strengthen our portfolio and our NAV, which has increased yet again in the last quarter. With our equity stake in Steel Shed Solutions and the ongoing exclusive negotiations with the Dream Yacht Charter group, announced in July, we currently stand at 12 investments made or underway, and have already passed our annual goal of 40 million euros in investments for 2017. Our capital increase project should allow us to buttress our financial capacity and seize the best opportunities for investment, furthering our mission as long-term entrepreneur-investors in high-potential Mid-Sized Companies (MSCs)¹.

• Net Asset Value of 160.4 million euros as at 30 June 2017, in progression

NAV as at 30 June 2017 stands at 160.4 million euros (versus 156.8 million euros at 31 March 2017, 152.7 million at 31 December 2016, and 96.4 million euros at 30 June 2016).

First semester increase in NAV is largely attributable to the increase in our investment portfolio fair value. Our equity holdings represent 77.4 million euros as at 30 June 2017, among which a 9.3-million-euro increase in their fair value over the semester.

• NAV per share at 110.55 euros, up +2.3% compared to 31 March 2017 (+9.2% year-on-year)

NAV per share is 110.55 euros (versus 108.05 euros at 31 March 2017), +2.3% since 31 March 2017 and +9.2% since 30 June 2016, despite the negative impact of extraordinary costs associated with the initial public offering conducted in late 2016.

• 77 million euros in holdings

As at 30 June 2017, holdings represent a value of 77.4 million euros, or 48% of net assets, and consist of unlisted companies: Oodrive, Naturabuy, La compagnie du Catamaran (holding company for Fountaine Pajot), Acorus, Bow, LinXea, Adopt, Efeso, GPS and Coorpacademy (for details on these companies, please refer to the Notes).

During H1 2017, these companies posted average annualized revenues of 42⁴ million euros with average growth of 14.5% compared to 30 June 2016⁵.

Available cash (net of WCR) as at 30/06/2017 is 83 million euros, of which 30 million are currently committed. In keeping with its economic model, NextStage does not use financial leverage and had no financial debt as of 30 June 2017.

• Net income group share of 7.86 million at 30/06/2017 euros (compared with -0.27 million euros as at 30/06/2016)

Net Income for H1 2017 is 7.86 million euros, compared to -0.26 million euros at 30 June 2016. ^The principal items comprising Net Income are:

- change in the fair value of non-current assets to 9.3 million euros at 30 June 2017, versus 0.5 million euros at 30 June 2016;

- income from non-current assets stood at 0.17 million euros at 30 June 2017, versus 0.18 million euros at 30 June 2016;

- external charges were 1.6 million euros as at 30 June 2017, versus 1.0 million euros at 30 June 2016.

• Outlook

With the investments made during the first semester in Oodrive and Naturabuy, the equity stake in Steel Shed Solutions in July 2017 and the commencement of exclusive talks with Dream Yacht Charter, NextStage would have already reached its investment objective of 40 million euros for the year 2017 (42.4 million euros of investments committed as at 13/09/2017). Since the IPO, the Group has experienced a marked acceleration in dealflow, with a number of desirable investment opportunities for the taking.

Thanks to these conditions, NextStage can be confidant about the realisation of its medium and long-term goals, and notably its objective of assembling a diversified portfolio of 40 to 50 companies and reaching 500 million euros in assets in the medium term.

• Changes to Governance

The extraordinary and ordinary annual General Meeting of 8 June 2017 confirmed the nominations of four new members of the Supervisory Board:

• Sandrine Duchêne: Secretary General at Axa France, formerly Deputy Director of the Treasury Dept.
• Sophie Dumas: Member of the Strategic Committee of Christofle
• Sophie Midy: Chairwoman of the Board at la Senlisienne de Portefeuille
• Arnaud Benoit: Director of Asset Management representing Téthys

The Board composition is thus compliant with rules governing gender balance as set out in Articles A226-4 and L226-4-1 of the French Commercial Code.

Additionally, Mr Philippe Bresson (Founder of the Bricostore Group in Central Europe) and Mr Mazen Tamimi (CEO of BSF, Crédit Agricole Group) were appointed advisory members of the Supervisory Board.

• Proposed Capital Increase

In view to reinforcing its investment capacities, NextStage has confirmed that it is considering a capital increase on the Euronext Paris exchange in the coming months, conditional on appropriate market conditions.

The product of this capital increase will make it possible for NextStage to take advantage of the opportunities of the rapid acceleration and high quality of its dealflow, and ensure optimal reserves of available cash to maintain agile responses to investment opportunities, including those involving existing holdings.

NextStage will inform the market of the timeline and terms for this operation in due course.

About NextStage

NextStage is an investment platform created in March 2015 and listed on the Euronext Paris market (Compartment C) since December 2016. At June 30, 2017, it had an Adjusted Net Asset Value of €160.4 million. NextStage specialises in Medium-Sized Companies (MSCs), which allows access to an unlisted and often inaccessible class of asset that drives growth and performance. The investments it makes are equity investments with little or no leverage over an unlimited time frame to provide funding for the growth of MSCs that work alongside visionary entrepreneurs. NextStage is backed by the know-how and stability of the asset management firm NextStage AM, which was founded in 2002. NextStage has already closed eleven investment transactions (as at 13 September 2017) since its inception. It is governed by the tax laws for SCR⁶. Its capital is held by prominent shareholders such as Artemis, Téthys, AXA, Ardian and Amundi. NextStage has built a novel and ambitious approach whose aim is to accelerate the growth of top-flight MSCs around four long-term trends of the 3rd industrial revolution.

NextStage is listed on the Euronext Paris Compartment C regulated exchange (ISIN: FR0012789386; Symbol: NEXTS). www.nextstage.com/sca

Additional information at [e-mail]

NOTES

• Balance Sheet (IFRS) as at 30/06/2017 with holdings adjusted for fair value as at 30 June 2017

ASSETS (in euros)	06/30/2017	12/31/2016	06/30/2016
NON-CURRENT ASSETS:
Non-current financial assets: Equities	62,627,789	49,424,335	28,928,198
Non-current financial assets: Bonds	14,799,531	5,801,120	5,738,391
TOTAL NON-CURRENT ASSETS:	77,427,320	55,225,455	34,666,590
CURRENT ASSETS:
Other assets	238,255	167,897	237,519
Cash equivalents	71,742,578	92,163,970	61,947,629
Cash	11,551,397	6,441,343	105,206
TOTAL CURRENT ASSETS:	83,532,230	98,773,210	62,290,355
TOTAL ASSETS:	160,959,550	153,998,665	96,956,944
LIABILITIES AND SHAREHOLDERS' EQUITY (in euros)	06/30/2017	12/31/2016	06/30/2016
SHAREHOLDERS' EQUITY
Capital	5,748,387	5,476,182	3,772,029
Premiums related to the capital	139,004,114	138,915,193	91,480,430
Reserves	7,793,858	1,356,905	1,455,130
Income for the year	7,855,125	6,923,754	-257,809
TOTAL SHAREHOLDERS' EQUITY	160,401,484	152,672,034	96,449,780
CURRENT LIABILITIES:
Trade payables	558,067	1,326,631	507,164
TOTAL CURRENT LIABILITIES:	558,067	1,326,631	507,164
TOTAL LIABILITIES:	160,959,550	153,998,665	96,956,944

• Income statement (IFRS) with holdings adjusted for fair value as at 30 June 2017

STATEMENT OF COMPREHENSIVE INCOME (in euros)	30/06/2017 (6 months)	30/06/2016 (6 months)	31/12/2016 (12 months)
Change in the fair value of non-current financial assets	9,326,532	519,646	10,123,936
Income from non-current financial assets	169,895	176,191	259,733
External charges	(1,594,493)	(983,181)	(3,485,003)
OPERATING INCOME	7,901,933	-287,345	6,898,666
Income from cash and cash equivalents	-46,808	29,536	25,088
Cost of gross financial debt	-	-	-
COST OF NET FINANCIAL DEBT	(46,808)	29,536	25,088
Other financial income	-	-	-
Other financial expenses	-	-	-
NET INCOME	7,855,125	-257,809	6,923,754
Change in conversion reserves	-	-	-
Actuarial gains and losses	-	-	-
Change in the fair falue of financial assets	-	-	-
COMPREHENSIVE INCOME	7,855,125	-257,809	6,923,754
Income per ordinary share	5.47	(0.27)	6.51
Diluted income per ordinary share	5.47	(0.27)	6.51

• Investments already made or underway

Dream Yacht Charter

NextStage entered into exclusive talks with Dream Yacht Charter in July 2017

In 2001, Loïc Bonnet started Dream Yacht Charter in the Seychelles with 6 sailboats. Thanks to his inspiring leadership the company grew, crossed the Indian Ocean, then extended to the Mediterranean, the Caribbean, Australia, the Pacific rim and, more recently, reached the American shores of the Bahamas. Today, Dream Yacht Charter is also the world leader in cabin cruises on board giant catamarans. On 27 July 2017, NextStage and the shipyard Fountaine Pajot announced they were entering exclusive negotiations with Dream Yacht Charter, #2 worldwide in boat rentals, as part of a majority equity investment which constitutes the first phase of an industrial, long-term support for the company. The goal of this process is to allow Dream Yacht Charter to strengthen its position as a world leader on the pleasure boat rental market and to continue pursuing growth. Dream Yacht Charter, led by Loïc Bonnet, who was joined in 2012 by Romuald Caillaud, has heretofore successfully self-financed its development, both by organic growth (establishing new offices, innovative offerings) and through strategic acquisitions. This ambitious strategy, combined with thoughtful attention to structuring, has allowed the company to experience profitable, uninterrupted growth of 15% to 20% annually for the last decade, and to report revenues close to 90 million euros in 2016.

Steel Shed Solutions

NextStage undertook this investment in July 2017, and made specifics of this operation public in September 2017

The Luxembourg group Steel Shed Solutions, created in 2001, is a digital platform for the sale of steel kit buildings. Steel Shed Solutions sells functional, low-cost, easy-to-assemble buildings suitable for various purposes: storage or livestock hangars, industrial buildings, agricultural structures, equestrian facilities, etc. Today the group sells nearly 1,000 buildings annually in 48 zones and countries. Steel Shed Solutions proposes its product offering across different websites, such as batimentsmoinschers.com, easysteelsheds.com, guenstigehallen.de and direct-batiment.fr. These sites allow private customers, SMEs and multinationals alike to order all sorts of buildings suitable for various purposes and different geographic conditions. The group offers free, instant quotes online, and remains committed to maintaining low prices while ensuring first-rate quality, thanks to systematic quality control and products made with galvanized, high-strength steel and in strict compliance with European standards.

Naturabuy

Created in 2007 by Olivier Occelli, NaturaBuy is an auction platform and marketplace with listings for products and services in relation to hunting, fishing and the outdoors. The platform generated €37 million in turnover for 270,000 transactions in 2016. Available online and on mobile and with nearly half a million users, the NaturaBuy digital platform is now the site of reference for the 2.5 million hunting and fishing enthusiasts whose spending represents a market of over 3 billion euros in France. NextStage is taking over from Mondadori. The operation allows the two founding entrepreneurs, Olivier Occelli (CEO) and Olivier Maury (CTO), to continue driving the company's growth. Dominique Papin, Technical Director for NaturaBuy since 2012, and Antoine Freysz, co-founder of NaturaBuy and CEO of Kerala Ventures (Doctolib, Privateezer, etc.), are also investing in the operation. Olivier van den Broek and Louis Duclert (founders of Effilab) and Jean-Hugues Loyez (former Chairman of Castorama) complete the round, providing their substantial expertise in online distribution, and a personal passion for hunting and fishing.

The entrepreneurs' aim, shared by all the company's new shareholders, is to capitalise on tangible assets, with a strong brand recognised in its segment and by activating all the growth drivers around (i) acceleration of development and pre-emption of the French market, (ii) international expansion and (iii) diversification and evolution of the business model.

Oodrive

Founded in 2000 by Stanislas and Edouard de Rémur and Cédric Mermilliod, Oodrive is a software company offering professionals 100% secure Cloud solutions for document sharing, online backup, data security and electronic certification. Based in Paris, the group currently has more than 300 employees across the world, 40% of whom are focused on R&D. Oodrive is one of the leading French players in SaaS and the 29th French software developer, according to the latest report from AFDEL/PwC. The group was selected the '2016 B2B Digital Champion' by the Systematic Paris-Region Competitiveness Cluster. In 2016, the company brought in about €40 million in revenue. Over the years, Oodrive has positioned itself as one of the leaders of SaaS in Europe in the data management and backup market. With a notable competitive advantage with respect to American players (Patriot Act), the solution is published in 14 languages and used in 90 countries. Our investment, alongside Tikehau and MI3, aims to support external structuring growth in Europe (for which Oodrive is in the audit finalisation phase), so as to consolidate Oodrive's position as an SaaS leader in Europe. The entrepreneurs also intend to accelerate growth and pre-emption of the French market via cross-selling with existing clients and winning over new customers.

Fountaine Pajot

Fountaine Pajot is the 3^rd largest player worldwide in the market for sailing catamarans and motor yachts with living space. A pioneer in the habitable sailing catamarans market since 1983, the company created a market that, up to that point, had not been explored. Today, thanks to its capacity for innovation, Fountaine Pajot has frayed a path into the fast-growing motor yachts market. With an international reputation, modern equipment and a large distribution network, Fountaine Pajot saw its revenue grow by 14.5% in 2016. Listed on Alternext since 2007, Fountaine Pajot is controlled by the holding company La Compagnie du Catamaran, majority-owned by the Fountaine family.

Acorus

Created in 1996 by Franck Dallavalle, Acorus initially specialized in housing renovation for housing association landlords in the Paris Metropolitan area. Taken over in 2010 by Philippe Benquet, Acorus accelerated its growth thanks to the renewed confidence of its historical clients and its entry into new markets such as hotels and healthcare. In 15 years, Acorus has built a solid reputation through its original pioneering positioning as "a construction services company," combining comprehensive expertise, know-how in construction and renovation in occupied settings and an approach focused on customer service. Backed by these skills, Acorus continues to grow steadily in its five core businesses: rehabilitation, housing upgrades, upkeep, maintenance and adaptations for persons with limited mobility.

BOW

Created in 2013 and active in more than 40 countries, MyKronoz has already become a reference in wearables by developing a full range of smartwatches and fitness trackers that are both trendy and accessible to the greatest number of users thanks to iOS, Android & WindowPhone. MyKronoz is distributed by major brands in France such as Orange, Boulanger and FNAC, in North America at Walmart and Staples, in Japan at Yodobashi and in Hong Kong at HMV. Backed by a 14% market share in France, MyKronoz is the second largest French company in the Wearables market (source: GfK). RoadEyes: created in 2011, RoadEyes positions itself as the leader in on-board camera solutions for vehicles. This brand is developing a wide range of connected solutions designed to improve road safety. RoadEyes products are sold through a solid network of distributors, e-commerce and mass retail companies and by specialized brands. RoadEyes was recently selected by BPI, UbiMobility and Business France as one of the eight most innovative French companies to approach US auto-makers to present its technologies.

LinXea

Created in 2004, LinXea is one of the pioneers in the digital distribution of savings products. With more than 21,600 customers and now 1 billion euros in outstandings at end-December 2016, the LinXea platform is positioned as one of the leading companies in France in the distribution of life insurance products over the internet. LinXea, considered one of the leaders in its market, is widely recognized as being the first on-line broker to have proposed management fees reduced to 0.6% on account units.

Adopt’

Adopt’ is a perfume and cosmetics brand created in 1986 by Dominique Monlun and run by Olivier Raulin the former CFO of Nocibé. Since its creation, the company has positioned itself by developing a network of nearly 100 stores, including 68 branches and franchises in France, Belgium, the French overseas departments and territories, Mauritius and Madagascar, as well as major international distribution partnerships (more than 500 sales outlets). Adopt’ is a unique original concept which is developing around the three fashion interests of young women: perfume, make-up and accessories. The company itself designs many of the products it sells, concentrating on (i) a high level of quality, (ii) sourcing mostly "made in France & Italy" and (iii) low, highly competitive prices. Sensitive to environmental protection, Adopt’ has been recycling its packaging for several years.

Efeso Consulting

Created in 1980, Efeso Consulting is a consulting firm specializing in strategy and organization. The group's business revolves around three kinds of services: managing change: (reorganization, integration of new acquisitions, organization of support functions), improved operating performance (product development, marketing, optimized purchasing, production and planning functions), strategy consulting (investment, acquisition and international development).

The firm has more than 450 employees and works with 300 clients. It is well established in Europe with major positions in France, Italy, Ireland and the Benelux countries. The firm is active in more than 25 countries around the world. The company's withdrawal from the stock exchange allows the group to capitalize on the experience of the historic founders and to pursue growth while improving its profitability drivers thanks to accretive acquisitions currently being integrated.

GPS

Founded in 2002, GPS is now one of the independent leaders in the flat glass distribution market in France. Thanks to its original model as distributor and transformer of flat glass and to its numerous facilities in France, Spain and Portugal (+major export), the group handles local deliveries of standard and specialized glass. The group's main business activities are: the distribution of multi-brand and own-brand glass with a unique range of glasses (Saint-Gobain Pilkington, Glass Tröcsh…) available through numerous storage outlets. GPS offers a value-added purchasing solution to its customers (transformers, mirror dealers and installers ...), logistics management (purchasing storage, transport, financing, etc.) to partners and clients and the transformation of flat glass (overnight orders) in the Madrid plant wholly owned by the group and specializing in the production of specialized/laminated glass.

Coorpacademy

An EdTech specializing in digital learning, Coorpacademy was created in 2013 by Jean-Marc Tassetto (former CEO of Google France and SFR) Arnault Mitre (former Director of Google's Agency Division), and Frédérik Benichou (founder of TeamInside and Planète Interactive). The purpose of Coorpacademy is to transform access to and especially the sharing of knowledge by offering an innovative and efficient educational experience focused on the user, and to support major companies conducting major transformations by training employees and managers in the digital, technological, energy and economic changes impacting them. Coorpacademy's know-how is concentrated on companies in an efficient technological platform and an original teaching methodology allowing them to transform any content into an engaging online learning experience adapted to the needs and constraints of the learner.

Just three years since its creation, 40% of the group's portfolio consists of clients from the CAC 40: Engie, Pernod Ricard, Société Générale, Renault, SFR, Chanel and LVMH.

¹ Mid-sized Companies are defined as those with revenues of 10 and 500 million euros
² Calculation methodology for NAV (before adjustment for preferred shares) available on the company's website at: http://www.nextstage.com/sca/finance/chiffres-cles/methodologie-de-calcul-de-lanr/
³ Per share of common stock.
⁴ H1 income S1 2017 based on averages from the portfolio’s 10 holdings (unaudited estimates) as at 30/06/2017. Calculation adjusted for holdings’ contribution to balance sheet as at 30/06/2017 for H1 revenue growth (unaudited).
⁵ Calculation of growth in H1 2017 revenues is weighted by the relative valuation of holdings in the balance sheet as at 30/06/2017 (unaudited)
⁶ SCR: Société de Capital Risque