Deutsche Beteiligungs AG · XETR:DBAN
Deutsche Beteiligungs — German Equity Forum 2016
26 slides from Deutsche Beteiligungs's conference presentation, Nov 21, 2016
Slide 1: Capitalising Strengths. Creating Opportunities.
CAPITALISING STRENGTHS. CREATING OPPORTUNITIES. BUILDING VALUE WITH AN ATTRACTIVE PORTFOLIO AND FUND INVESTMENT SERVICES GERMAN EQUITY FORUM 21 NOVEMBER 2016
Slide 2: Agenda
AGENDA Market position and market access Integrated business model with two business lines Track record GERMAN EQUITY FORUM · FRANKFURT AM MAIN, 21 NOVEMBER 2016 2
Slide 3: Why Invest in DBAG? Key Investment Highlights
WHY INVEST IN DBAG? KEY INVESTMENT HIGHLIGHTS MARKET POSITION MARKET ACCESS The market leader in German mid- … with unique access to “Hidden market Private Equity … Champions“ of the German “Mittelstand”… TRACK RECORD INTEGRATED BUSINESS MODEL … and delivering strong returns … creating value for sha
Slide 4: DBAG, a pioneer in German private equity for more than five decades
DBAG, A PIONEER IN GERMAN PRIVATE EQUITY FOR MORE THAN FIVE DECADES More than 300 Private Equity investments in German Mittelstand companies since 1965 37 MBOs and 18 growth financings within the past 20 years Thereof 23 MBOs and 11 growth financings exited, with an weighted average capital multiple
Slide 5: Largest investment team for private equity investments in Germany
LARGEST INVESTMENT TEAM FOR PRIVATE EQUITY INVESTMENTS IN GERMANY Investment team of 24 professionals, with more than 250 years of aggregated DBAG‘s Investment- team Private Equity experience Two managing partners and ten directors with the firm for an average of 15 years Strong commitment through c
Slide 6: Strong platform to provide superior access to German Mittelstand
STRONG PLATFORM TO PROVIDE SUPERIOR ACCESS TO GERMAN “MITTELSTAND” DBAG brand Excellent reputation “Partner of choice“ for family owners and management teams One-stop shop Growth financings and MBOs: Private Equity solutions for different Mechanical and plant Industrial components engineering financ
Slide 7: DBAG creates value for shareholders through two business lines
DBAG CREATES VALUE FOR SHAREHOLDERS THROUGH TWO BUSINESS LINES INTEGRATED BUSINESS MODEL FUND INVESTMENT PRIVATE EQUITY SERVICES INVESTMENTS v v DB AG’S SHARE IN … DB AG FUND IV: 28 % DB AG FUND V: 19% DB AG FUND VI: 19% DB AG FUND VII: 20% DBAG FUNDS DB AG ECF: 47% DB AG FUND IV: 72% v DB AG FUND V
Slide 8: The current portfolio of companies is included in three DBAG funds
THE CURRENT PORTFOLIO OF 22 COMPANIES IS INCLUDED IN THREE DBAG FUNDS… DBAG Fund VI 8/8 DBAG 7/7 ECF DBAG 6/11 Fund V Direct invest- ments <2000 … 2010 2011 2012 2013 2014 2015 2016 Portfolio as of 30 June 2016. Investment in Broetje-Automation and Grohmann sold, investments in Frimo, R & M Internat
Slide 9: Has broad exposure in different sectors
… HAS BROAD EXPOSURE IN DIFFERENT SECTORS DBAG‘s four “core sectors“ Other sectors… Mechanical and Industrial plant engineering components … where DBAG’s platform provides Industrial Automotive services suppliers superior access GERMAN EQUITY FORUM · FRANKFURT AM MAIN, 21 NOVEMBER 2016 9
Slide 10: Investing: proven investment process
INVESTING: PROVEN INVESTMENT PROCESS – SOUND BASIS TO DEVELOP COMPANIES OUR INVESTMENT CRITERIA Invest- Executive COMPANY PERSPECTIVE ment Circle banks Direct Mid-sized company High development contacts with strong market potential position > 300 First check ~ 200 MANAGEMENT SECTORS LOI < 50 Proven
Slide 11: Developing: Broetje-Automation – delivering top performance (1/2)
DEVELOPING: BROETJE-AUTOMATION – DELIVERING TOP PERFORMANCE (1/2) Entry in March 2012 at 4.5x EV/EBITDA Interest of 19% acquired, a further 78% held by DBAG Fund V €5.6mn invested from DBAG's balance sheet Divestment in August 2016: Trade sale to Shanghai Electric at 8.0x EV/EBITDA 195 MILLION EUROS
Slide 12: Developing: Broetje-Automation – delivering top performance (2/2)
DEVELOPING: BROETJE-AUTOMATION – DELIVERING TOP PERFORMANCE (2/2) Management and governance €50mn Two DBAG "Executive Circle" members and MBO director revenue increase joined as non-executive board members through five Comprehensive compliance and ESG standards implemented add-ons Strategic position
Slide 13: Realising the value: weighted average capital multiple of 2.6x
REALISING THE VALUE: SUPERIOR INVESTMENT RETURNS – WEIGHTED AVERAGE CAPITAL MULTIPLE OF 2.6x 23 of 37 MBOs exited since inception of buyout business 20 years ago Average holding period of 4.7 years Average capital multiple of 2.6x DBAG’s portfolio companies typically attractive to strategic investor
Slide 14: Steep increase in assets under management and management fee income
STEEP INCREASE IN ASSETS UNDER MANAGEMENT AND MANAGEMENT FEE INCOME ASSETS UNDER MANAGEMENT MANAGEMENT FEE INCOME (€MN) (€MN)* 29.0 25.2 800 22.2 19.2 18.6 1,075 998 5.6 551 2005/06 2009/10 2013/14 2017/18e 31.10.2005 30.9.2015 30.6.2016 actual DBAG Fund VII actual expected *Managed and advised asse
Slide 15: Attractive value creation for shareholders: 13.6% annual TSR on average
ATTRACTIVE VALUE CREATION FOR SHAREHOLDERS: 13.6% ANNUAL TSR ON AVERAGE Outperformance of major indices in seven out of ten years DBAG: +273% S-Dax: +89% Dax: +78% LPX Direct (EUR): +26% TOTAL SHAREHOLDER RETURN (1 OCTOBER 2006 TO 31 OCTOBER 2016, INDEX: 1 OCTOBER 2006=100) 400 350 300 250 DBAG 200
Slide 16: Attractive shareholder remuneration through predictable dividend
TRACK RECORD: ATTRACTIVE SHAREHOLDER REMUNERATION THROUGH PREDICTABLE DIVIDEND DBAG’s dividend policy 9 Stable and predictable PRIVATE EQUITY INVESTMENTS Stable or increasing dividend payments dividend whenever possible DB AG FUND V: 19% v DB AG VI: 19% 9 Attractive shareholder Attractive dividend y
Slide 17: 2015/2016 at a glance
2015/2016 AT A GLANCE Investment activity on track Telio, Frimo, Polytech: 3 MBOs mageba, R&M International: 2 growth financings Capital base strengthened Capital increase in September 2016 DBAG Fund VII closed in September 2016 Credit facility since January 2016 Consolidated net income (preliminary
Slide 18: Appendix
APPENDIX GERMAN EQUITY FORUM · FRANKFURT AM MAIN, 21 NOVEMBER 2016 18
Slide 19: Key P&L figures
KEY P&L FIGURES Profitable in the short and long-term (€mn) 2013/2014 2014/2015* 9M 2014/2015 9M 2015/2016 Net result of investment activity 50.7 29.2 29.4 33.0 Fee income from fund management and advisory services 22.2 19.2 16.0 13.9 Other income / expenses -24.5 -21.3 -17.0 -20.7 EBIT 48.2 26.8 26
Slide 20: Key balance sheet metrics
KEY BALANCE SHEET METRICS Solid balance sheet (€mn) 2013/2014 2014/2015* Q3 15/16 (€mn) 2013/2014 2014/2015* Q3 15/16 Financial assets 163.4 247.7 262.9 Equity 303.0 303.1 315.8 Others 28.4 21.1 20.7 Non current liabilities 9.7 8.9 8.6 Financial resources** 140.7 58.3 59.0 Current liabilities 19.8 1
Slide 21: Current trading: Private Equity Investments segment
CURRENT TRADING: SEGMENTAL BUSINESS PERFORMANCE – PRIVATE EQUITY INVESTMENTS Q1 – Q3 Q1 – Q3 (€mn) 30.9.2015 30.6.2016 (€mn) 2014/2015 2015/2016 Net result of fund Financial assets incl. 250.2 262.9 services and 29.4 33.0 loans and receivables investment activity Financial resources 58.3 59.0 Other
Slide 22: Current trading: Fund Investment Services segment
CURRENT TRADING: SEGMENTAL BUSINESS PERFORMANCE – FUND INVESTMENT SERVICES Q1 – Q3 Q1 – Q3 ASSETS UNDER MANAGEMENT OR (€mn) ADVICE (€MN) 2014/2015 2015/2016 Fee income from fund 1,075.4 998.3 management and 17.0 14.8 58.3 advisory services 59.0 Other income/expenses -14.3 -16.2 301.2 282.8 Segment n
Slide 23: Preliminary figures outperform 2015/2016 guidance
PRELIMINARY FIGURES OUTPERFORM 2015/2016 GUIDANCE 2015/2016 2014/2015 Guidance 2015/2016 prelim. figures “significantly higher 1 Net income €27.0mn on comparable basis“ €48 – 52mn “return on NAV significantly in 2 Return on equity per share 10.0% excess of cost of equity” > 15% 3 Net result of inves
Slide 24: DBAG share snapshot
DBAG SHARE SNAPSHOT Relative share performance (24 months) Key data 160 Last price (€) as of 9.11.2016 30.35 140 Market Capitalisation (€mn) 456.51 120 Shares outstanding (€mn) 15.04 100 Average daily trading volume (4 weeks) 17,453 DBAG Dax S-Dax LPX Direct 80 Average daily trading volume (3 months
Slide 25: Financial calendar and additional information
FINANCIAL CALENDAR AND ADDITIONAL INFORMATION Financial calendar Key share data 21.11.2016 German Equity Forum, Frankfurt a. M. Reuters: DBAG.n Symbol Bloomberg: DBAN 15.12.2016 Release of full-year figures 2015/2016 ISIN code DE000A1TNUT7 15.12.2016 Analysts’ Conference, Frankfurt a. M. Listing Pri
Slide 26: Disclaimer
DISCLAIMER THIS PRESENTATION (“THE PRESENTATION”) AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION I