14.11.2019

Deutsche Beteiligungs AG: dividend to rise to 1.50 euros

  • DBAG takes advantage of scope to raise distribution
  • Preliminary net income for 2018/2019 between 43 and 45 million euros
  • Results burdened by the macroeconomic environment, and by capital market developments

Frankfurt/Main, 14 November 2019 – Deutsche Beteiligungs AG (DBAG) is set to increase its dividend for the third time in a row. The Board of Management and Supervisory Board of the listed private equity company – whose shares are included in the SDAX – will propose to the Annual Meeting to distribute a dividend of 1.50 euros per share for the financial year 2018/2019. The previous financial year’s dividend was 1.45 euros per share, up from 1.40 euros for 2016/2017 and 1.20 euros for 2015/2016, respectively.

The proposal is in line with DBAG's dividend policy that transforms the Company's business model – which takes a long-term view, but is exposed to short-term volatility – into regular distributions. “We endeavour to pay a stable dividend – increasing it whenever possible, as for this year“, CFO Susanne Zeidler emphasised. Based on the current share price, a distribution of 1.50 euros per share translates into a clearly above-average dividend yield of around 4 per cent. “The high distributable net retained profit, in excess of 170 million euros as at the most recent reporting date, will permit the distribution of dividends at this level over the coming years“, Zeidler continued.

Based on unaudited, preliminary figures, DBAG posted consolidated net income of between 43 million euros and 45 million euros for its financial year 2018/2019 (which ended on 30 September 2019), and thus performed better than the most recent forecast. The net asset value of Private Equity Investments increased slightly, whilst Fund Investment Services contributed around three million euros. The development of net asset value – and hence, of net income – reflects the significant deterioration in the macroeconomic environment, and its impact on the capital markets as far as valuations of cyclical companies are concerned. Specifically, valuations of portfolio holdings related to the automotive sector or the wind power industry were adversely affected. DBAG generated net income of 29.7 million euros in the previous financial year, which was also burdened by negative capital market developments.

The consolidated financial statements 2018/2019, as well as the annual financial statements of Deutsche Beteiligungs AG will be published on 10 December 2019.