DEEN
Long-term
planning.
Patience in
development.
Writing success stories
in eventful times.
ANNUAL REPORT 2017/2018

KEY FIGURES

NET INCOME
33.6
MILLION EUROS
RETURN ON
EQUITY PER
SHARE
7.8
PERCENT
PERFORMANCE FOR
SHAREHOLDERS
(19.8)
PERCENT
ASSETS UNDER MANAGEMENT
1.8
BILLION EUROS
NET ASSET VALUE
475.1
MILLION EUROS

Letter to our shareholders

In this letter we would like to explain to you why we are satisfied with the past financial year overall, why shares in Deutsche Beteiligungs AG are a good investment, and why we look ahead to the future with confidence.

Interview with Torsten Grede

Mr Grede, what sets DBAG apart from other private equity companies?

How does DBAG manage to write success stories in eventful times? What does software have to do with the Old Economy? What does DBAG need the funds for? And most importantly of all: what does this mean for the shareholders? Spokesman of the Board of Management Torsten Grede answers these and other questions on the strategy pursued by Deutsche Beteiligungs AG.

BUSINESS SEGMENT FUND INVESTMENT SERVICES

Experience is everything

The business segment of Fund Investment Services bundles the advisory services provided by the investment team of Deutsche Beteiligungs AG to the DBAG funds. In return for these services, DBAG receives volume-related remuneration that is easy to plan for. DBAG receives additional fees on the basis of individual transactions for the advice it provides to DBAG ECF.

261

INVESTMENT OPPORTUNITIES
WERE ASSESSED BY THE
DBAG INVESTMENT TEAM FOR
THE DBAG FUNDS IN THE
FINANCIAL YEAR 2017/2018

The members of the investment team are the key to success in the Fund Investment Services business: they prepare investment decisions, support portfolio companies and advise the funds on the sale of investments.

24
MEMBERS

make up the investment team, including two members of the Board of Management who are directly involved in the transaction business

9
YEARS

is the average length of service of investment team members at DBAG

 

 

265
YEARS

of experience have the investment team members combined in the private equity business

BUSINESS SEGMENT PRIVATE EQUITY INVESTMENTS

Working together towards success

The Private Equity Investments segment comprises the investments in midmarket companies that Deutsche Beteiligungs AG makes alongside the DBAG funds. This results in the key influential factor for DBAG’s net income: the net result of investment activity. It is determined by the performance of the existing portfolio and proceeds from the disposal of investments.

39.2%

TOTAL INCREASE OF
VALUE OF DBAG
PORTFOLIO IN FINANCIAL
YEAR 2017/2018

85.1
MILLION EUROS

DBAG invested in its portfolio

16.7
MILLION EUROS

was the fair falue of the disposals from the portfolio

29.2
MILLION EUROS

amounted the increase in the value of the carried portfolio

OUR PORTFOLIO

Invest

 

Seven new investments agreed in the reporting year

In financial year 2017/2018, our investment team filtered seven particularly promising investment opportunities out of more than 250. The following five transactions became effective before the financial year was over, two further transactions taking effect after the reporting date:

Develop

Our portfolio companies developed in a variety of ways in 2017/2018 and increased their revenues substantially. More than two-thirds of this increase was achieved using organic sources, but also by way of company acquisitions. This is shown by the following examples of two our portfolio companies:

Realise

As a private equity company, we support companies in their further development. In financial year 2017/2018 we sold one company – Cleanpart – completely:

When founders or family shareholders withdraw from active roles, they often leave an empty space in the company’s management. Filling these empty spaces as soon as possible in order to guarantee the company’s independence and autonomy are a key value-adding approach pursued by private equity companies. As well as managing the succession issue, the objectives set at the start of the investment were to pursue continued technological development and to focus on the service business in the semiconductor industry. This is why the healthcare segment, which was originally the company’s second business line and had built up a very successful track record, also found a new shareholder before Cleanpart was sold to a strategic buyer in August 2018. This means that both parts of the company have a good chance of achieving positive development in the future – something that was reflected in the sale price.

THE DBAG SHARE

Dividend policy consistently pursued

Our dividend policy translates our long-term business model, which can of course show short-term volatility in indiv idual years, into a predictable and reliable distribution: Our dividend should be stable and increase whenever possible. Our shareholders are familiar with Deutsche Beteiligungs AG as a stock that pays high dividends – and this is something we do not plan to change.

1.45
EUROS

dividend proposal

 

 

4
PERCENT

increase compared to previous financial year

 

 

3.5
PERCENT

dividend yield

 

 

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CONTACT

Thomas Franke
Thomas Franke

Senior Vice President, Head of Public Relations and Investor Relations

Thomas Franke
Name:
Thomas Franke
Telephone:
+49 69 95787-307
E-Mail:

Thomas Franke

Senior Vice President, Head of Public Relations and Investor Relations

Thomas Franke joined DBAG in 2001.

Previously he was Head of Internal Communications and Public Relations at Lurgi AG. He began his career as a business journalist at Frankfurter Allgemeine Zeitung.

Thomas Franke completed his training as a television and radio journalist and studied economics at the University of Hamburg.

Thomas Franke

Senior Vice President, Head of Public Relations and Investor Relations

+49 69 95787-307
thomas.franke@dbag.de