Deutsche Beteiligungs AG (ISIN: DE000A1TNUT7 / WKN: A1TNUT) – Net asset value rises significantly during the third quarter, reflecting good capital market developments; net income for the full year likely to remain negative
Disclosure of inside information pursuant to Article 17 (1) of Regulation (EU) 596/2014 on Market Abuse
Deutsche Beteiligungs AG (DBAG) expects to post a quarterly result of approximately 52 million euros for the third quarter of the 2019/2020 financial year (1 April to 30 June 2020), clearly exceeding the figure for the third quarter of the 2018/2019 financial year (5.0 million euros). Net income for the first nine months of the financial year is expected to be around -25 million euros (previous year: 12.6 million euros), and will thus show a significant improvement compared to the forecast for the 2019/2020 financial year (most recently adjusted in early May). This deviation and improvement is predominantly attributable to exceptionally volatile capital market developments, caused by the COVID-19 pandemic: valuations of listed peer-group companies – which DBAG needs to use to value its investments – have markedly increased again over recent months. DBAG cannot incorporate capital market developments in its forecast.
DBAG expects results for the current fourth quarter of the 2019/2020 financial year to be influenced by negative and positive effects alike. Specifically, it cannot be excluded that results of individual portfolio companies will deteriorate further than currently anticipated, given the course of the pandemic – which would diminish the valuation of DBAG’s investment held in such companies, with a corresponding negative value contribution. This may be mitigated by successful results from ongoing disposal processes; likewise, the Company’s second segment – Fund Investment Services – may deliver a further positive contribution to results. Whether – and to what extent – the balance of these different factors will be positive or negative cannot be predicted as yet. Based on the assumption (which is generally required) that valuation levels on the capital markets will not have changed considerably by the end of the financial year as against their levels on 30 June, DBAG expects to close the 2019/2020 financial year with a net asset value in a range between 400 and 425 million euros, and continues to anticipate negative net income for the full year, between -25 and -5 million euros.
Once again, DBAG would like to point out that the results of a single quarter are no indication for the results of the financial year as a whole; this also applies when comparing a single quarter with the same quarter of the previous financial year. Results of individual periods may differ strongly, even in the case of consecutive periods. DBAG is currently in the process of preparing its interim financial statements as at 30 June 2020, and will publish the corresponding quarterly statement on 6 August.
The Board of Management
Frankfurt/Main, 27 July 2020
Issued by: Thomas Franke, Head of Public Relations and Investor Relations