Scherzer & Co. AG · XETR:PZS

Scherzer & — SCC_Small Cap Conference 2014

31 slides from Scherzer &'s conference presentation, September 2014

  1. Slide 1: Company Presentation, SCC_Small Cap Conference

    Company Presentation SCC_Small Cap Conference 01/09-02/09/2014

  2. Slide 2: Agenda

    1. Executive Summary 2. Investments 3. Portfolio 4. Financials 5. Summary

  3. Slide 3: Executive Summary

    Scherzer & Co. AG September 2014 Executive Summary Page 3 Scherzer & Co. AG Scherzer & Co. AG is a Cologne, Germany-based investment holding company whose object is to pursue long-term capital appreciation for its shareholders through investments that are both safety-oriented and opportunistic. From

  4. Slide 4: Mission Statement

    Scherzer & Co. AG September 2014 Scherzer & Co. AG Page 4 Mission Statement  As mid-term target, to build an investment portfolio with equity financing of at least EUR 100 million.  To establish the company as one of the top quoted investment holding companies in the area of special situations and

  5. Slide 5: Agenda

    1. Executive Summary 2. Investments 3. Portfolio 4. Financials 5. Summary

  6. Slide 6: Investment universe

    Scherzer & Co. AG September 2014 Investments Page 6 Investment universe We primarily analyse investment 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 a

  7. Slide 7: Selection process

    Scherzer & Co. AG September 2014 Investments Page 7 Selection process Qualitative factors Notifications  Management  Barriers to market entry  Corporate philosophy  Market growth  Competitive advantages Investment proposal Research Quantitative factors:  Balance sheet strength  Margins  Cash

  8. Slide 8: Safety and Opportunity

    Scherzer & Co. AG September 2014 Investments Page 8 Safety and Opportunity Risk-reduced capital appreciation while the same time seizing upon interesting capital market opportunities: Safety: Opportunity:  Investments with a natural „Floor“  Investments in sustainable models with appropriate growt

  9. Slide 9: Example: Opportunity – Tipp24 SE

    Scherzer & Co. AG September 2014 Investments Seite 9 Example: Opportunity Tipp24 SE 60 EUR Business model: 55 EUR Tipp24 SE holds equity interests in a number of companies in the UK and Spain which enable participation in lottery-based 50 EUR games via the Internet. 45 EUR Investment case:  The tra

  10. Slide 10: Example: Safety – WMF AG

    Scherzer & Co. AG September 2014 Investments Seite 10 Example: Safety WMF AG 60 EUR Business model: 55 EUR In August 2012, Finedining Capital GmbH, a KKR subsidiary, made an offer of EUR 47.00 for common shares and EUR 31.80 50 EUR for preferred shares. The price offered for the common shares repres

  11. Slide 11: Example: Opportunity – GK Software AG

    Scherzer & Co. AG September 2014 Investments Seite 11 Example: Opportunity GK Software AG 55 EUR Business model: 50 EUR GK Software AG is a technologically leading software partner to retail with extensive solutions for branches and central 45 EUR corporate sites. Well-known customers like Galeria K

  12. Slide 12: Example: Safety – MAN SE

    Scherzer & Co. AG September 2014 Investments Seite 12 Example: Safety MAN SE 110 EUR Business model: The MAN Group is one of Europe's leading commercial vehicle, 100 EUR engine and mechanical engineering companies, generating annual revenue of around EUR 15.8 billion and employing a 90 EUR workforce

  13. Slide 13: Example: Opportunity – Francotyp-Postalia Holding AG

    Scherzer & Co. AG September 2014 Investments Seite 13 Example: Opportunity Francotyp-Postalia Holding AG 5,00 EUR Business model: Francotyp-Postalia is an expert in communication by letter. With 4,50 EUR 11 subsidiaries and more than 80 retailers the company is present in all of the most important w

  14. Slide 14: Agenda

    1. Executive Summary 2. Investments 3. Portfolio 4. Financials 5. Summary

  15. Slide 15: The largest equity positions

    Scherzer & Co. AG September 2014 Portfolio Page 15 The 10 largest equity positions* 1. MAN SE common stocks WKN 593 700 8.02 % Safety 2. GK Software AG ¹ WKN 757 142 7.22 % Opportunity 3. Württ. Lebensversicherung AG WKN 840 502 6.26 % Opportunity 4. WMF AG preferred stocks WKN 780 303 4.82 % Safety

  16. Slide 16: Portfolio News

    Scherzer & Co. AG September 2014 Portfolio Page 16 News  Scherzer & Co. AG has tendered its entire position in the context of increased offer of 58 EUR for WMF AG preferred shares.  After the announcement of a takeover bid by Dürr Technologies GmbH an participation in Homag Group AG has been built

  17. Slide 17: Subsequent improvement volume

    Scherzer & Co. AG September 2014 Portfolio Page 17 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 arisi

  18. Slide 18: Selected project completions

    Scherzer & Co. AG September 2014 Portfolio Page 18 Selected project completions  IBS excell.collab.manufact. AG Disposed in January 2014  Pironet NDH AG Disposed in September 2013  Generali Deutschland Holding AG Disposed in July 2013  hotel.de AG Disposed in December 2012  Andreae-Noris Zahn A

  19. Slide 19: Agenda

    1. Executive Summary 2. Investments 3. Portfolio 4. Financials 5. Summary

  20. Slide 20: Capital development

    Scherzer & Co. AG September 2014 Financials Page 20 Capital development  Public limited company founded in 1910: Articles of association created as Porzellanfabrik Zeh, Scherzer und Co. AG.  Capital increases between 2005 and 2007: Increase in share capital through four separate capital increases

  21. Slide 21: Balance sheet figures

    Scherzer & Co. AG September 2014 Financials Page 21 Balance sheet figures 30/06/14 31/12/13 Securities classified as EUR 21,687 21,119 non-current assets '000 Securities classified as EUR 45,435 47,801 current assets '000 EUR Total assets 68,050 69,942 '000 EUR Shareholders' equity 46,467 43,627 '00

  22. Slide 22: Income statement

    Scherzer & Co. AG September 2014 Financials Page 22 Income statement 01/01-30/06/14 01/01-30/06/13 EUR Profit/ loss on ordinary activities 3,290 879 '000 EUR Net income/ loss for the year 2,841 722 '000 Earnings per share EUR 0.09 0.02

  23. Slide 23: Income statement

    Scherzer & Co. AG September 2014 Financials Page 23 Income statement 01/01-30/06/14 01/01-30/06/13 EUR Realized gains 6,112 2,818 '000 EUR Realized losses 799 410 '000 EUR Other operating gains 1 731 '000 EUR Dividend income 1,266 785 '000 EUR Other interest and similar income 81 173 '000

  24. Slide 24: Income statement

    Scherzer & Co. AG September 2014 Financials Page 24 Income statement 01/01-30/06/14 01/01-30/06/13 EUR Wages and salaries 485 207 '000 EUR Write-downs 3 0 '000 EUR Other operating expenses 261 216 '000 Write-downs to fair value at EUR 2,321 2,502 reporting date '000 EUR Interest and similar expenses

  25. Slide 25: Share / NAV performance

    Scherzer & Co. AG September 2014 Financials Page 25 Share / NAV performance 2014 2013 2012 EUR Market capitalisation 50,898 42,784 33,533 '000 Peak/ low EUR 1.82/ 1.40 1.49/ 1.10 1.15/ 0.89 Closing value (22/08/2014) EUR 1.70 1.4290 1.1200 Share performance (22/08/2014) +18.96% +27.59% +18.39% NAV p

  26. Slide 26: Share / NAV performance

    Scherzer & Co. AG September 2014 Financials Page 26 Share / NAV performance 2,00 EUR 1,90 EUR 1,80 EUR 1,70 EUR 1,60 EUR 1,50 EUR 1,40 EUR Börsenkurs 1,30 EUR Net Asset Value 1,20 EUR 1,10 EUR 1,00 EUR 0,90 EUR -5,0% Abschlag -15,0% -25,0% Net Asset Value: The present value of portfolio positions af

  27. Slide 27: Agenda

    1. Executive Summary 2. Investments 3. Portfolio 4. Financials 5. Summary

  28. Slide 28: Listing

    Scherzer & Co. AG September 2014 Summary Page 28 Listing  Exchange: Frankfurt Stock Exchange Entry Standard OTC 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 (Stuttg

  29. Slide 29: Management / Supervisory Board

    Scherzer & Co. AG September 2014 Summary Page 29 Management / Supervisory Board Dr. Georg Issels Managing Director Scherzer & Co. AG since 2002 Management Managing Director RM Rheiner Management AG since 2008 Hans Peter Neuroth Managing Director Scherzer & Co. AG since 2013 Managing Director RM Rhei

  30. Slide 30: Contact / Financial Calendar

    Scherzer & Co. AG September 2014 Summary Page 30 Contact / Financial Calendar Scherzer & Co. Aktiengesellschaft Phone: +49 221 - 8 20 32 0 Friesenstraße 50 Telefax: +49 221 - 8 20 32 30 50670 Köln info@scherzer-ag.de www.scherzer-ag.de Commercial Register: Cologne District Court Reg.No. HRB 56235 

  31. Slide 31: Disclaimer

    Scherzer & Co. AG September 2014 Summary Page 31 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)

Scherzer & — SCC_Small Cap Conference 2014 on 6ix