Scherzer & Co. AG · XETR:PZS

Scherzer & — Investor Presentation (July 2011)

34 slides from Scherzer &'s investor presentation, Jul 31, 2011

  1. Slide 1: Company presentation Scherzer & Co. Aktiengesellschaft

    Company presentation Scherzer & Co. Aktiengesellschaft As of July 31, 2011 7/31/2011 © Scherzer & Co. AG

  2. Slide 2: Agenda

    1. Executive Summary 2. Positioning 3. Strategy: Safety and opportunity 4. Significant individual positions 5. Financials 6. Summary 7/31/2011 © Scherzer & Co. AG 2

  3. Slide 3: Executive Summary

    Executive Summary  Scherzer & Co. AG is a Cologne, Germany-based investment holding company whose object is to pursue long-term capital appreciation for its shareholders through an investment strategy that is both safety-oriented and opportunistic.  From safety-oriented aspects investments are und

  4. Slide 4: Mission Statement

    Mission Statement  As mid-term target, to build an investment portfolio with equity financing of at least €100 million.  To establish the company as one of the top quoted investment holding companies in the area of special situations and corporate actions.  To position the company as a relevant p

  5. Slide 5: Management and Supervisory Board

    Management and Supervisory Board Dr. Georg Issels Managing Director, Scherzer & Co. AG, since 2002 Managing Director, RM Rheiner Management, since 2008 Dr. Hanno Marquardt Lawyer Chairman Partner in the law firm Schmitz Knoth Rechtsanwälte Bonn, Cologne, Berlin Rolf Hauschildt Investor Deputy Chairm

  6. Slide 6: Agenda

    1. Executive Summary 2. Positioning 3. Strategy: Safety und opportunity 4. Significant individual positions 5. Financials 6. Summary 7/31/2011 © Scherzer & Co. AG 6

  7. Slide 7: Investment universe of Scherzer & Co. AG

    Investment universe of Scherzer & Co. AG  We primarily analyze investments in regions under German jurisdiction. However, Scherzer & Co. AG basically invests opportunistic.  We believe that most market valuations are efficient. But due to human irrationality, valuations are occasionally incorrect,

  8. Slide 8: Investment universe of Scherzer & Co. AG

    Investment universe of Scherzer & Co. AG Such investment opportunities usually occur in the following three categories, which is why Scherzer & Co. AG focuses on them: Unknown Unloved Special situation  500 – 1000 shares  Business model is  Takeover situation without coverage misconceived  Micro

  9. Slide 9: Positioning: Concentration on two strategies

    Positioning: Concentration on two strategies Risk-reduced capital appreciation while at the same time seizing upon interesting capital market opportunities. Safety Opportunity Network through: through:  investments with a  high-growth and sustainable „natural floor“ business models  special balan

  10. Slide 10: Agenda

    1. Executive Summary 2. Positioning 3. Strategy: Safety und opportunity 4. Significant individual positions 5. Financials 6. Summary 7/31/2011 © Scherzer & Co. AG 10

  11. Slide 11: Investment strategy

    Investment strategy Safety through  investments in companies with a “natural floor” (cash offers or expected cash offers).  special balance sheet quality: net cash position, little/no debt, share price (significantly) below book value.  strong and/or strategic principal shareholder.  special ear

  12. Slide 12: Selected individual positions

    Selected individual positions  Andreae-Noris Zahn AG Sector: Commerce WKN 504 700 Takeover in process  Kizoo AG Sector: Investment company WKN CMB T11 Cash value  Generali Deutschland Holding AG Sector: Insurance WKN 840 002 Squeeze-out candidate 7/31/2011 © Scherzer & Co. AG 12

  13. Slide 13: Investment strategy

    Investment strategy Opportunity through  investments in sustainable business models with appropriate growth potential.  special situations.  seizing upon opportunity potential presented by capital measures (restructurings, recapitalisations, growth finance).  participating in corporate realignme

  14. Slide 14: Selected individual positions

    Selected individual positions  Dr. Hönle AG Sector: Printing industry WKN 515 710 High cash flow  Biotest AG Sector: Biotechnology WKN 522 720 Special situation/ development pipeline  Stada Arzneimittel AG Sector: Pharma WKN 725 180 Corporate Action 7/31/2011 © Scherzer & Co. AG 14

  15. Slide 15: Agenda

    1. Executive Summary 2. Positioning 3. Strategy: Safety and Opportunity 4. Significant individual positions 5. Financials 6. Summary 7/31/2011 © Scherzer & Co. AG 15

  16. Slide 16: The ten largest equity positions

    The ten largest equity positions in order of market capitalisation based on share prices as of 7/31/2011 WKN 522 720 Biotest AG Opportunity WKN 840 002 Generali Deutschland Holding AG Safety WKN A0Y F5P Exceet Group S.E. Opportunity WKN 660 500 Medion AG Safety WKN 617 703 Repower Systems S.E. Safet

  17. Slide 17: Aktuelles

    Aktuelles  The SPAC “Helikos” acquired Exceet Group S.E. in July 2011. The new company, named exceet Group S.E., is one of the leading suppliers of embedded electronics and security solutions. In this context Scherzer & Co. AG stepped up the investment in this company. In addition the engagement in

  18. Slide 18: Subsequent Improvement Volume

    Subsequent Improvement Volume  An interesting corollary of investments in takeover bid/squeeze-out stocks are the successive, significant volumes of subsequent improvement rights (additional settlement claims). They represent potential claims arising from court arbitration awards sought in the wake

  19. Slide 19: Selected project completions

    Selected project completions  Kässbohrer Geländefahrzeug AG Tendered under company agreement  Kölnische Rückversicherungsgesellschaft AG Squeeze-out completed in February 2009  Ersol AG Squeeze-out completed in September 2009  Altana AG Tendered under public tender offer  D&S Europe AG Squeeze-

  20. Slide 20: Agenda

    1. Executive Summary 2. Positioning 3. Strategy: Safety und Opportunity 4. Significant individual positions 5. Financials 6. Summary 7/31/2011 © Scherzer & Co. AG 20

  21. Slide 21: Development of capital

    Development of capital Founded in 1880, articles of incorporation adopted in 1910 as  1880/ 1910 Porzellanfabrik Zeh, Scherzer & Co. AG Capital converted to euro and no-par-value shares,  August 2002 subscribed capital (SC): € 883,750.00, divided into 883,750 shares  June 2005 Capital increase 1

  22. Slide 22: Balance Sheet Figures as of 31 December

    Balance Sheet Figures as of 31 December FY 2010 FY 2009 Securities classified as TEUR 20.530 20.546 non-current assets Securities classified as TEUR 27.983 19.727 current assets Total assets TEUR 49.718 40.890 Shareholders„ equity TEUR 33.384 29.450 Subscribed capital TEUR 27.219 27.219 Bank liabili

  23. Slide 23: Key P&L Figures

    Key P&L Figures FY 2010 FY 2009 Profit/ loss on ordinary activities TEUR 4.034 5.997 Net income/ loss for the year TEUR 3.934 5.367 Earnings per share EUR 0,14 0,20 7/31/2011 © Scherzer & Co. AG 23

  24. Slide 24: Key P&L Figures

    Key P&L Figures FY 2010 FY 2009 Realized gains/ losses TEUR 3.130 1.189 Other operating income TEUR 2.872 6.448 Dividend income TEUR 1.192 537 Other interest and similar income TEUR 275 210 7/31/2011 © Scherzer & Co. AG 24

  25. Slide 25: Key P&L Figures

    Key P&L Figures FY 2010 FY 2009 Wages and salaries TEUR 292 198 Write-downs TEUR 5 5 Other operating expenses TEUR 548 530 Write-downs to fair value at reporting TEUR 1.998 1.148 date Interest and similar expenses TEUR 565 488 Taxes on income TEUR ./. 100 ./. 630 7/31/2011 © Scherzer & Co. AG 25

  26. Slide 26: Earnings as of 30 June 2011

    Earnings as of 30 June 2011 1. HY 2011 1. HY 2010 1. HY 2009 Realized gains/ losses Mio. EUR 3,50 0,65 ./. 0,52 Dividend income Mio. EUR 0,73 1,01 0,43 Other income and expenses Mio. EUR 0,34 1,69 3,76 Therefrom write-ups (HGB) Mio. EUR 0,01 1,33 3,51 Write-downs Mio. EUR 1,95 2,09 1,45 Other expens

  27. Slide 27: Share performance

    Share performance 2010 2009 Market capitalisation TEUR 32.936 26.947 High/ Low EUR 1,2390 / 0,8000 1,01 / 0,59 Closing price EUR 1,2080 0,99 Share price: 1,26 EUR 7/31/2011 Market capitalisation: 34,30 Mio. EUR 7/31/2011 © Scherzer & Co. AG 27

  28. Slide 28: Share performance

    Share performance 7/31/2011 © Scherzer & Co. AG 28

  29. Slide 29: Agenda

    1. Executive Summary 2. Positioning 3. Strategy: Safety and Opportunity 4. Significant individual positions 5. Financials 6. Summary 7/31/2011 © Scherzer & Co. AG 29

  30. Slide 30: Key Investment Highlights

    Key Investment Highlights  Balanced risk mix reduces the portfolio‟s volatility and lowers the correlation to the total market.  Opportunistic investment approach allows interesting returns.  Including special situations in the investment approach leads to higher income.  Administrative costs mi

  31. Slide 31: Listing

    Listing  Stock exchange: Frankfurt Stock Exchange Entry Standard Over-the-Counter Market at the Berlin, Düsseldorf and Stuttgart Exchanges, Xetra  Ticker symbol: PZS  Reuters: PZSG.DE (Xetra), PZSG.F (Frankfurt), PZSG.D (Düsseldorf), PZSG.BE (Berlin), PZSG.SG (Stuttgart)  Bloomberg: PZS  Resear

  32. Slide 32: Financial calendar

    Financial calendar 24 March 2011 Supervisory Board Meeting 30 May 2011 Annual General Meeting 30 May 2011 Supervisory Board Meeting 3 August 2011 Half-year figures 30 September 2011 Supervisory Board Meeting 2 December 2011 Supervisory Board Meeting 7/31/2011 © Scherzer & Co. AG 32

  33. Slide 33: Contact details

    Contact details Scherzer & Co. Aktiengesellschaft Friesenstrasse 50 50670 Köln Telefon: +49 - 221 - 8 20 32 0 Telefax: +49 - 221 – 8 20 32 30 info@scherzer-ag.de www.scherzer-ag.de Commercial Register: Cologne District Court, Reg. No. HRB 56235 7/31/2011 © Scherzer & Co. AG 33

  34. Slide 34: Disclaimer

    Disclaimer This presentation contains statements about future developments as well as information derived from sources considered to be reliable by Scherzer & Co. AG. All statements in this presentation (including opinions, estimates, and assumptions) which are not historical facts, such as the futu

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