Deutsche Beteiligungs AG – Positive Quarterly Results Frankfurt am Main, September 2004.
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Transcript of Deutsche Beteiligungs AG – Positive Quarterly Results Frankfurt am Main, September 2004.
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Contents
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
3rd Quarter 2003/2004- Changes to portfolio- Profit and loss account
1st – 3rd quarter 2003/2004- Financial results- Sources of income and expenses- Debts and investments- Share- Developments of markets
Outlook
Appendix
43rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook
Appendix
3rd Quarter 2003/2004 – Changes to the portfolio
Home Care Supply realized- Due to deteriorated exchange rate of
the dollar, no appreciable capital gain
Silent participation in HKL Baumaschinen GmbH repaid at nominal value, as scheduled
(Residual) interest in Schubert-&-Salzer GmbH (MBO entered in the 90s) sold
- Book value < € 0.3 mn=> Share of MBOs (direct and indirect) in the portfolio increased again
October 31, 2003 60.9%April 30, 200467.7%July 31, 2004 69.2%
53rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook
Appendix
3rd Quarter 2003/2004 – Profit and loss account
Positive result: € 0.6 mn, 3rd quarter previous: € 0.01 mn
- No appreciable net realized gains- Stable current and one-time income
from investments- Growing cost recovery through fee
income from fund management business
Losses from investment disposals (€ 0.6 mn) due to exchange rate effects
Downward value adjustments € 0.5 mn - Essentially one smaller US investment
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Nine-months-results
thousands of €1 Nov 2003 -
31 Jul 20041 Nov 2002
– 31 Jul 2003
Income from investments and gains from investment disposals
17.379 21.269
Losses from investment disposals 1.016 1.482
Write-offs 3.040 16.532
Other operating income 9.318 13.124
Personnel costs 7.942 5.643
Other operating expenses 8.625 7.771
Net interest -1.916 -2.510
Result of ordinary activity 4.158 455
Taxes 18 334
Consolidated net income 4.140 121
Earnings per share (€) 0.22 0.01
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Major sources of Income
Income from investments and gains from investment disposals
1st – 3rd quarter 2003/2004 € 17.4 mn1st – 3rd quarter 2002/2003 € 21.3 mn
- Profit distribution Harvest Partners IV- Profit distribution subsequent to sales in preceding
years- No other appreciable net realized gains
Other operating income 1st – 3rd quarter 2003/2004 € 9.3 mn 1st – 3rd quarter 2002/2003 € 13.1 mn
- Higher management-fee income through new co-investment fund DBAG Fund IV
- Structuring fees- Previous year: valuation uplifts
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Major expenses
Other operating expenses1st – 3rd quarter 2003/2004 € 8.6 mn1st – 3rd quarter 2002/2003 € 7.8 mn
- Higher one-time charges (capital increase€ 2.6 mn)
Personnel costs 1st – 3rd quarter 2003/2004 € 7.9 mn 1st – 3rd quarter 2002/2003 € 5.6 mn
- Changes to Board of Management- Performance-related remuneration- Allocations to provisions
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Balance sheet structure improved
Equity ratio rose to 69.6% (31 October 2003: 54.4%)
Assets (€ mn) 31 Jul 2004
31 Oct 2003
Liabilities (€ mn)
31 Jul 2004
31 Oct 2003
Long-term assets
269.7 256.9 Equity 215.0 158.7
Current assets 31.7 29.9 Provisions 19.9 18.6
Cash balance 7.3 5.1 Liabilities to banks
Other liabilities
34.0
39.8
75.8
38.8
308.7 291.9 308.7 291.9
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Debt significantly reduced
Net-liabilities to banks
0
20
40
60
80
100
120
140
Apr 02 Jul 02 Oct 02 Jan 03 Apr 03 Jul 03 Oct 03 Jan 04 Apr 04 Jul 04
€ mn
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Increase of Investments
Data on 2002/03 and 2003/04 adjusted for effects from interim financings
0,0
10,0
20,0
30,0
40,0
50,0
60,0
2001/2002 2002/2003 I - III-2003/2004
€ mn
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Shares trade 24% below fair value
S-Dax (indexed)
DBAG (adjusted)Dax (indexed)
FTSE InvestmentCompanies (indexed)
Fair Value
5
6
7
8
9
10
11
12
13
14
2.1.03 2.4.03 2.7.03 2.10.03 2.1.04 2.4.04 2.7.04
Euro
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
Fair value determined semi-annually (most recently at April 30, 2004)
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Satisfactory market development
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
Stable dealflow- Corporate spin-offs predominate- Secondary buyouts increasing
High liquidity- Market entry by new banks
overcompensated other institutes retreating
Growth trend still intact
Market drivers remain effective
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Previous year's result exceeded
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
Principal target level:Return on equity of 15% before taxes on long-term average- Will not be achieved in 2003/2004
Fair Value- Uplift in first six months: +7,9%- New investments developing very
satisfactorily; recognition in fair value for FY 2004/2005
Expectations for 2003/2004: Previous year's net income (€ 3.1 mn) will be exceeded- Net income up to 3rd quarter: € 4.1 mn- Potential for dividend payment
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Deutsche Beteiligungs AG – Stocks with scope
Portfolio with appreciation potential
Successful investment strategy
Balance sheet structure strengthened for new investments
Shares traded below fair value
Deutsche Beteiligungs AG – a good opportunity to invest
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Total equity
Total equity (less dividend)Total equity (less dividend)
92108
173 172155
214
158
0
50
100
150
200
250
€ mn
31.10. 31.10. 31.10. 31.10. 31.10. 31.10. 31.07. 1998 1999 2000 2001 2002 2003 2004
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Long-term assets
31.10. 31.10. 31.10. 31.10. 31.10. 31.10. 31.7.
1998 1999 2000 2001 2002 2003 2004
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
Book value of investments (purchase costs or lower)
211231
252292
270 257 270
0
50
100
150
200
250
300
350
€ mn
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Net profit
consolidated since 2000/01
Net income/loss
21
3832
9
-16
4.13.0
-20
-10
0
10
20
30
40
50
97/98 98/99 99/00 00/01 01/02 02/03 03/04(1st-3rd
quarter)
€ mn
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Valuation principles according to International Accounting Standards (IAS)
Valuation principles based on IAS rules
Valuation based on- stock market prices- purchase offers- comparable transactions- Multiples method based on various
financial data (EBIT, sales, net asset value and peer-group or industry comparisons)
- “sum of the parts” valuation
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Fair value of portfolio discloses valuation reserves
Valuation guidelines based on IAS rules
Disclosure of fair value since end of FY 2001/2002
€ 311.7 mn € 284.1 mn
€ 27.6 mn
Status: 30 April 2004
Currentmarket value
UnrealizedappreciationNet asset value, based on German Commercial Code (acquisition cost or lower)
Fair value
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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DBAG Fund IVDeutsche
Beteiligungs AG
Structure of fund co-investment
Target company
~ 60 %
~10 %
Management of target company
~ 30 %
1 % investment by carry team of Deutsche
Beteiligungs AG
Fee income for cost coverage
Access to larger transactions through additional financings (“co-investment funds”)
Equity investment structure
1 2:
Benefits
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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10 largest investments represent ~ 62% of book value
Status: 31 July 2004
Company Dateof
invest-ment
Bookvalue€ mn
Percentage
owned
Percentage of DBAG portfolio
Type Sales 2003 € mn
Industry
Harvest Partners Intl. IV
04/01 32.0 11.7 % 11.9 % Fund n.a. US Fund
Bauer AG 09/96 27.6 41.2 % 10.3 % Growth 581 Special construction
Homag AG 01/97 22.6 21.4 % 8.4% Growth 615 Wood processing machinery
schlott gruppe AG 12/99 17.4 14.0 % 6.5 % MBO 614 Media systems provider
Hörmann KG 05/97 13.7 28.0 % 5.1 % Growth 350 Industrial Service
Harvest Partners Intl. III
10/97 13.2 6.9 % 4.9 % Fund n.a. US Fund
AKsys GmbH 12/01 12.6 10.1 % 4.7 % MBO 356 Automotive acoustics
Lund Intern. Holdings Inc.
09/97 11.2 10.1 % 4.2 % MBO 153 Mio.$
Automotive accessories
Babcock Borsig Service GmbH
11/03 8.6 27.5 % 3.2 % MBO 340 Industrial Service
Coveright Surfaces GmbH
07/03 8.5 14.1 % 3.2 % MBO 262 Surface materials
TOTAL TOP TEN 167.4 62.4%
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Development of fair value
Fair value = book value of equity per share (HGB) +
valuation reserves per share
Portfolio valued according to IFRS rules
Valuation at 30 April 2004 based on expected business situation 2004
€12.42*
€10.90*
€12.91€11.97*
* Adjusted for effects of capital increase
€11.43€10.85€10.63€10.63
€1.48€1.12
€0.27€1.79
Oct 02 Apr 03 Oct 03 Apr 04Equity Valuation reserve
3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix
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Contact and Information
Stock abbreviation: Reuters: DBAG.FBloomberg: DBA
ISIN-Code: DE0005508105
Stock market trading with official listing in PRIME STANDARD
Indices: S-DaxC-Dax-Industrial
For more information: www.deutsche-beteiligung.comDeutsche Beteiligungs AG Investor RelationsKleine Wiesenau 1 Thomas Franke60323 Frankfurt am Main Phone.: +49 69 95787-307Phone.: +49 69 95787-01 Fax: +49 69 95787-391
Email: [email protected]
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Forward-looking statements
This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Any statement in this presentation that states our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a forward-looking statement. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Beteiligungs AG. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere, the geographic focus of our investment activity.