In 2012, our portfolio pretty much reflected the German industrial Mittelstand, with well over 80 per cent of our portfolio companies coming from the industrial sector. But since then we have diversified and also invest in the healthcare, broadband telecommunications and IT services and software sectors, which are becoming increasingly important for us.

In 2022, we invested primarily in industries with structural growth, such as IT services and software. This diversification has helped to balance the volatility of earnings and allowed us to make exits even in difficult market conditions.

As of 31 December 2022, portfolio companies in the healthcare, broadband telecommunications and IT services and software sectors accounted for 45 per cent of the total portfolio value, while the industrial sector accounted for 47 per cent.

DBAG's track record in generating returns for investors is clearly very solid. In our view, the most important success factor for generating consistent and high returns is an experienced team. DBAG's 34-strong Investment Advisory Team, whose senior members have an average of 17 years of private equity experience, is a key advantage. This experience is hard to match. In addition, we have established clear processes for due diligence.

Furthermore, the co-investments of our senior team members have created a strong alignment of interests, which is typical in the private equity industry. Looking at recent portfolio company disposals in late 2022 and early 2023:

• Cloudflight: Thanks to robust demand in the IT services and software sector, we were able to achieve a high capital multiple of >4x despite a challenging market.
• Pmflex: Here the buyer had a clear strategic interest in the company, which enabled us to realise it in just over two years at an attractive price. Pmflex was also the first disposal of an Italian portfolio company, adding to our track record.
• Heytex: the disposal was the last exit of a DBAG Fund V portfolio company
• BTV Multimedia: The February 2023 sale followed a successful buy-and-build strategy implemented through five add-ons. The transaction achieved a capital multiple of more than three times, making it very attractive.

We have already analysed the situation for our portfolio companies in detail when the gas shortage occurred in 2022. Overall, the impact of the gas shortage plays a minor role for our overall portfolio: portfolio companies with a high gas share account for only 3 per cent of our total portfolio value. This underlines the advantages of a more diversified portfolio structure. However, supply chain disruptions are more difficult to manage. Portfolio companies affected by supply chain issues account for 16 per cent of our portfolio value and are mostly from industry-related sectors.