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SHARES

THE DBAG SHARE – ACCESS TO THE ATTRACTIVE PRIVATE EQUITY ASSET CLASS AT THE PRICE OF A SHARE

Private equity is designed primarily for mid-sized companies as a means of financing their growth or of organising their succession. It enhances their capacity to innovate, improves their competitive standing and creates growth potential in the process. Their improved market position allows them to generate higher returns on the capital employed and thus increases their enterprise value.

Comparisons with listed or family-owned companies bear impressive testimony to this: companies financed using private equity have better financing structures, pursue clearer strategies and achieve stronger growth. As well as generating higher returns for their investors, this improves their ability to secure existing jobs and also to create additional ones.

Thus, investments in the private equity asset class often result in higher returns than other forms of equity investment. This is why private equity is also a fixed component of institutional investment strategies, which are the source of the capital commitments made to the DBAG funds, for example.

Deutsche Beteiligungs AG offers investors the opportunity to participate in this attractive asset class even if they have only small volumes of capital to invest, all while providing an investment form that can be traded on a daily basis and complies with internationally recognised transparency standards.

Reap twice the benefits from the potential offered by the private equity business with DBAG shares
DBAG shares allow investors to participate in a unique integrated business model: they are given access to ongoing earnings contributions made by the advisory services provided to private equity funds and, at the same time, participate in the performance of a portfolio of top-performing mid-sized companies that are not listed themselves. Our shareholders have benefited from this business model, achieving above-average performance on their shares.

CAPITAL MARKET COMMUNICATION – A FOCUS ON PROACTIVE COMMUNICATION

We have traditionally sought to maintain intensive dialogue with investors and financial analysts. In the financial year 2016/2017, we once again used a range of communication channels in order to achieve this – in particular, face-to-face meetings, analyst conferences and selected capital market conferences. We spent a total of 15 days on the road and spoke to 80 companies in five European countries to present our shares, provide information on current business developments and to explain our further strategic development. In the previous year, the capital increase implemented in September 2016 formed a focal point of our activities, accounting for nine out of a total of 22 investor days.

In the reporting year, our talks concentrated on matters including portfolio transactions and the capital gains generated as a result, as well as the development potential offered by the new and existing companies in our investment portfolio. The presentations can be accessed on our website. Last but not least, we also used our membership of various associations to underscore our commitment to an open dialogue with the capital market.

Our investor relations activities were met with a positive response on the market: in October 2017, our capital market communication received a particularly positive rating from the Leipzig Graduate School of Management and the magazine “manager magazin” for the third time in a row. Out of the 50 companies listed on the S-Dax, our Annual Report and our IR presentation received top marks. Out of all 160 Dax, M-Dax, S-Dax and Tec-Dax stocks, we once again made it into the ranks of the best 10 percent of the evaluated companies.

Further information on the current status of our IR activities: www.dbag.de/IR

SHARE PRICE PERFORMANCE AND DEVELOPMENT IN ANALYST ESTIMATES

Encouraging 2016/2017 marks the continuation of a very positive long-term trend

During the first five months of the financial year, our shares developed largely in tandem with the market as a whole. The end of March then brought a pronounced upward trend that continued until the end of May 2017. During this period, DBAG shares gained 36 percent, with some periods characterised by large daily trading volumes. This phase was characterised by significant new developments in our portfolio. Between the end of February and the end of May alone, our investment team, with its long-standing experience, concluded eight transactions, five of which were – in some cases exceptionally – successful disposals.

This prompted us to lift our annual forecast on 2 May 2017. From June onwards, our shares started on a sideways trend before once again rising considerably in September, the last month of the financial year. This was also due to the further details on our forecast released on 8 August 2017, in which we informed the market that we were expecting a further improvement in net income for the financial year 2016/2017 on the net income at 30 June 2017.

Our shares touched on their annual low very early on in the financial year, decreasing in value to 29.59 euros on 13 October 2016. On the last trading day of the financial year, they then reached their annual high of 45.51 euros, which was also the highest closing price ever reached since the stock was first listed on 19 December 1985.

This means that, all in all, our shares made substantial gains during the financial year, clearly outperforming the Dax (+20.9 percent) and S-Dax (+27.9 percent) as in the previous years with an increase of 53.9 percent. Our shares have shown performance that is well above-average compared in particular with the sector index for international listed private equity companies: during the same period, the LPX50 only increased by 20.2 percent. As a result, DBAG’s shareholders once again benefited from above-average performance from a longer-term perspective: the annual total return over the last ten years, based on share price performance and distributions, comes to 13.5 percent, which is well in excess of the return achieved by the benchmark indices. Our shares also have a considerable lead based on other comparative periods.

PERFORMANCE1 (P.A. %) OVER …
DBAG sharesDaxS-DaxLPX502
1 year
(financial year 2016/2017)
59.320.927.920.2
3 years
(financial years 2014/2015 to 2016/2017)
33.411.020.514.7
5 years
(financial years 2012/2013 to 2016/2017)
25.011.918.917.0
10 years
(financial years 2007/2008 to 2016/2017)
13.54.97.54.0

1 Adjusted for dividends
2 Index including the 50 biggest international listed private equity companies in terms of market capitalisation; DBAG shares are included in this index

Liquidity: considerable increase in trading volume on the regulated market
Trading activity in our shares has traditionally been particularly high – in terms of the number of shares traded – in the second quarter of the financial year, when our dividend is paid out. In 2016/2017, the average daily trading volume was more than 100 percent higher than in the previous quarter in the months from January to March 2017. In the third quarter, however, the trading volume was also almost as high as in the second quarter. In terms of our business developments, this three-month period was notable due to the large investment portfolio transaction volume and the corresponding decision to improve our forecast.

All in all, this meant that the trading volume on Xetra and on the regional stock exchanges rose by more than a quarter to a total of almost 8.66 million shares in the financial year 2016/2017. The daily average for all trading venues rose sharply, from just under 27,000 to almost 34,000 shares. Thus, the liquidity of our shares has increased significantly of late, meaning that we met another one of the objectives set as part of our most recent capital increase. After all, one of the reasons behind this encouraging development is likely to be the higher market capitalisation. Surpassing the 500 million euro threshold makes DBAG shares interesting for a larger group of institutional investors. The appointment of a third designated sponsor in May 2017 will certainly have also contributed to this trend.

Including OTC trading, almost 11.4 million shares changed hands in the financial year under review, up by around 6 percent year-on-year. This marks a turnaround in the trend seen in the previous year, when less than half of the total transactions were executed on Xetra for the first time. With a 34 percent increase in the volume traded on Xetra, Xetra trading now accounts for more than 58 percent of trading.

Research: analysts give DBAG shares a positive rating overall
At the end of the financial year 2016/2017, seven research companies and banks were in contact with us, observing our shares and publishing their estimates. In their most recent studies and updates, they particularly praised the large number of portfolio reallocations and the resulting boost to the value of our portfolio and to the net asset value.

The high frequency at which the research companies publish company studies and update estimates regarding DBAG shares throughout the stock market year is also worth mentioning. They do this not only in line with our regular reporting on the individual quarters of the financial year and on the overall financial year, but also in connection with important company news, such as portfolio transactions. Given the large number of transactions executed in the financial year 2016/2017, a correspondingly large number of commentaries were published.

The analyst estimates that we become aware of are documented on a regular basis and in a timely manner on our website under Investor Relations/ Shares/Analysts’ ratings.

The following research companies analyse our corporate development and issue valuations of our shares on a regular basis: Baader-Helvea Equity Research Bankhaus Lampe Edison Investment Research J.P. Morgan Cazenove Oddo BHF AG SRC Research Warburg Research.

APPROPRIATION OF PROFITS

Dividend policy takes investment activity requirements into account
We want our shareholders to participate in the Company’s success by enjoying dividends that are as regular as possible. This is one of our financial objectives. In line with this objective, DBAG’s dividend yield has been attractive, both in general terms and compared to other listed private equity firms. We want it to remain attractive, irrespective of how our business model develops, and we are now generating much higher fund inflows from fund advisory and management services. Our investment portfolio is now larger, which will stabilise inflows from disposals. Both of these aspects allow us to pay a stable dividend. We have, however, also increased the co-investment capital commitments we have made to the DBAG funds. This requires the corresponding financial resources: we always want to keep sufficient financial resources available to be able to finance co-investments alongside the DBAG funds using our proprietary capital, in line with our financing strategy.

This forms the basis of our dividend policy: our dividend is to remain stable and increase whenever this is possible; the dividend yield is to be attractive.

Proposed distribution: dividend of 1.40 euros per share
The Supervisory Board and the Board of Management recommend paying a dividend of 1.40 euros per share from the retained profit of 181.9 million euros for the financial year 2016/2017, or a total of 21.1 million euros. This represents an increase of 0.20 euros per share, or 16.7 percent, year-on-year. In relation to the average share price in the financial year 2016/2017, this represents a dividend yield of 3.9 percent.

SHAREHOLDER PROFILE

Lower proportion of private individual shareholders

Private individuals still form the largest group of DBAG shareholders, despite the fact that they now account for a smaller number of shares than in recent years. At 15 September 2017, the most recent disclosure date for the share register, approximately 15,250 private individuals and shareholder associations were registered, holding just under 41 percent of the shares or almost 400 shares per securities account on average. One year earlier (30 September 2016), 45 percent of the shares were in the hands of around 14,900 private individuals with around 440 shares held in each securities account. The proportion of shares held by family offices is unchanged at 23 percent; this also includes the two shareholders that hold more than 5 percent of the shares: Rossmann Beteiligungs GmbH announced in April 2015 that it had fallen below the 20-percent threshold and, based on the former number of shares, held 19.9 percent in DBAG at that time. Based on comparable information, Anpora Patrimonio, a family office based in Spain, holds approximately 5 percent of the shares. 82 percent of DBAG shares were in free float ownership at the reporting date, as defined by Deutsche Börse and according to the voting rights notifications we have received.

STAMMDATEN
ISINDE000A1TNUT7
BörsenkürzelDBAGn.DE (Reuters) / DBAN (Bloomberg)
Handelsplätze Frankfurt (Xetra und Präsenzhandel), Berlin-Bremen, Düsseldorf,
Hamburg, Hannover, München, Stuttgart
Börsensegment Regulierter Markt (Prime Standard)
Index-Zugehörigkeit (Auswahl) S-Dax (Rang 351); Classic All Share; C-Dax; Prime All Share; Deutsche-Börse-Sektorindizes: DAXsector All Financial Services, DAXsubsector Private Equity & Venture Capital Weitere Indizes: LPX Buyout, LPX Europe, LPX50; Stoxx Private Equity 20
Designated Sponsors Bankhaus Lampe KG, Oddo BHF AG, M.M.Warburg & CO (AG & Co.) KGaA
Grundkapital 53.386.664,43 Euro
Ausgegebene Aktien 15.043.994 Stück
davon im Umlauf
15.043.994 Stück
Erstnotiz19. Dezember 1985

1 Per 30. September 2017, gemessen an der Marktkapitalisierung (Liquiditätsmaß: Rang 44)

BASIC DATA
ISIN:DE000A1TNUT7
Ticker symbolDBANn.DE (Reuters)/DBAN (Bloomberg)
Listings Frankfurt (Xetra and trading floor), Berlin-Bremen, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart
Stock market segment Regulated Market (Prime Standard)
Index affiliation (selection) S-Dax (rank 351); Classic All Share; C-Dax; Prime All Share; Deutsche Börse sector indices: DAXsector All Financial Services, DAXsubsector Private Equity & Venture Capital; Other indices: LPX Buyout, LPX Europe, LPX50; Stoxx Private Equity 20
Designated sponsors Bankhaus Lampe KG, Oddo BHF AG, M.M.Warburg & CO (AG & Co.) KGaA
Share capital 53,386,664.43 euros
Number of shares issued 15,043,994
thereof outstanding
15,043,994
First listing19 December 1985

1 At 30 September 2017, measured by market capitalisation (liquidity measure ranking: 44)