Frankfurt/Main, March 2024
DBAG Corporate Presentation
Disclaimer
This presentation contains forward-looking statements. Forward-looking statements are statements that do not describe facts or past events; they also include statements about our assumptions and expectations.
Any statement in this report that states our intentions, assumptions, expectations or predictions and the underlying assumptions is a forward-looking statement. These statements are based on plans, estimates and projections currently available to the Board of Management of Deutsche Beteiligungs AG. Therefore, forward-looking statements only relate to the date on which they are made. We do not assume any obligation to update such statements in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors may cause actual events to differ significantly from those in forward-looking statements. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere - the key regions for our investment activities.
Deutsche Beteiligungs AG is not and will not be registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act") and, as such, holders of the securities of Deutsche Beteiligungs AG will not be entitled to the protections of the Investment Company Act. There are restrictions on the sale and resale of securities of Deutsche Beteiligungs AG to, and the holding of securities by, persons in the United States or who are "U.S. persons" as defined in Regulation S under the U.S. Securities Act of 1933 (as amended, the "Securities Act") ("U.S.
Persons"). Issuances and sales of Deutsche Beteiligungs AG's securities may not be made to any U.S. Person or to any person or address in the United
States, except to "qualified purchasers" ("QPs") (as defined in Section 2(a)(51)(A) of the Investment Company Act) acting for their own account or for the account of one or more other QPs. Direct or indirect beneficial ownership of securities of Deutsche Beteiligungs AG by any person in the United States or a U.S. Person who is not a QP is prohibited.
This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the Securities Act or an exemption from registration. The securities described in this presentation have not been and will not be registered under the Securities Act. There will be no public offering of these securities in the United States.
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B u s i n e s s m o d e l a n d m a r k e t
DBAG´s business model
Value enhancing investment strategies in private markets
with focus on family owned businesses, enabling sustainable developments
Private Equity | Fund Investment |
InvestmentsServices
Co-invest
alongside funds
Invest
independently
DBAG funds
Initiate, structure and provide advice for closed-end funds
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I n t e g r a t i o n o f E L F C a pi t a l G ro u p
New strategic partnership - DBAG x ELF capital the Mittelstand Investment Platform
Private Equity Platform | Credit Platform | ||||||||
Mid-Cap | Small-Cap | Long-Term Investments | Direct Lending | Capital Solutions | |||||
- Mid-capMBOs in DACH and Italy via DBAG Fund VIII
- Focus on family successions and carve-outs
- Small-capMBOs in DACH via DBAG ECF vintages
- Focus on family successions
- Exclusively DBAG own balance sheet investments
- Growth financings in DACH looking for a >7 years partnership
-
Credit investments across Northern Europe with focus on
DACH - Senior Secured Loans mainly self-structured and negotiated
- Flexible Senior (Secured Credit) creating alpha via complexity
- Highly structured non-control capital solutions targeting mid-teens IRR
Full range of equity solutions for Mittelstand companies
Debt & debt-like investments with downside
protection
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B u s i n e s s m o d e l a n d m a r k e t
Long-term structurally growing market with high share of primaries underscoring the healthy market structure
Number of MBOs and transaction volume1 | Number of investment opportunities | |||||||||||||||||||||||||||||||||||||||||
(mid-market segment, €50-250mn) | by quarter2 | FY 2023: +20% yoy | ||||||||||||||||||||||||||||||||||||||||
Oct-Dec: +29% yoy | ||||||||||||||||||||||||||||||||||||||||||
+6% CAGR | 62 | Thereof primaries: | 315 | 214 (-32% yoy) | 256 | |||||||||||||||||||||||||||||||||||||
6.6 | ||||||||||||||||||||||||||||||||||||||||||
56% | ||||||||||||||||||||||||||||||||||||||||||
86 | ||||||||||||||||||||||||||||||||||||||||||
secondaries/tertiaries: | 83 | |||||||||||||||||||||||||||||||||||||||||
51 | 44% | 81 | ||||||||||||||||||||||||||||||||||||||||
8 | ||||||||||||||||||||||||||||||||||||||||||
47 | 18 | 72 | ||||||||||||||||||||||||||||||||||||||||
5.4 | 43 | 19 | 69 | |||||||||||||||||||||||||||||||||||||||
65 | 66 | |||||||||||||||||||||||||||||||||||||||||
3 | 61 | |||||||||||||||||||||||||||||||||||||||||
35 | 4.8 | 11 | 18 | 60 | 4 | |||||||||||||||||||||||||||||||||||||
34 | 34 | 34 | 51 | 5 | 5 | |||||||||||||||||||||||||||||||||||||
31 | 30 | 4.4 | 47 | |||||||||||||||||||||||||||||||||||||||
44 | 3 | |||||||||||||||||||||||||||||||||||||||||
1 | ||||||||||||||||||||||||||||||||||||||||||
4.1 | ||||||||||||||||||||||||||||||||||||||||||
23 | 4.0 | 3.9 | 78 | 3 | 66 | |||||||||||||||||||||||||||||||||||||
3.6 | 62 | 65 | 62 | |||||||||||||||||||||||||||||||||||||||
3.2 | 54 | 54 | 46 | 48 | 56 | 55 | ||||||||||||||||||||||||||||||||||||
41 | ||||||||||||||||||||||||||||||||||||||||||
2.7 | ||||||||||||||||||||||||||||||||||||||||||
2.3 | ||||||||||||||||||||||||||||||||||||||||||
2013 2014 | 2015 2016 | 2017 | 2018 2019 2020 2021 2022 | 2023 | Jan- | Apr- | Jul- | Oct- | Jan- | Apr- | Jul- | Oct- | Jan- | Apr- | Jul- | Oct- | ||||||||||||||||||||||||||
Mar | Jun | Sep | Dec | Mar | Jun | Sep | Dec | Mar | Jun | Sep | Dec | |||||||||||||||||||||||||||||||
Number of transactions | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||||
Total transaction value (€bn) | Long-Term Investments | |
MBOs | ||
- Majority takeovers in the context of MBOs, MBIs, secondary/tertiary buyouts involving a financial investor in Germany, primaries: transactions sourced from families and founders as
well as corporate spin-offs; sources: FINANCE, DBAG - Source: DBAG CRM system
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S t r a t e g y , c o m pe t i t i v e s t re n g t h s a n d m a r k e t po s i t i o n
Transaction activity: two new investments and two disposals closed, five add-ons, thereof three agreed and two closed
Investment activity
NOKERA | ProMik | GMM Pfaudler | R+S |
(Long-Term Investment) | (Investment) | (Disposal) | (Disposal) |
Add-on acquisitions
akquinet | AOE | Avrio Energie | MTWH |
(two add-ons) |
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S t r a t e g y , c o m pe t i t i v e s t re n g t h s a n d m a r k e t po s i t i o n
Value creation through buy-and-build
101 Add-ons during last eight years, thereof 10 closed* during the course of the financial year 2022/2023 and two
further Add-ons agreed upon
akquinet | in-tech | Karl Eugen Fischer | MTWH | netzkontor |
(two completed, | (two add-ons) | (two add-ons) | ||
one agreed) |
* Total additional capital provided by DBAG: around 14 million euros
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S t r a t e g y , c o m pe t i t i v e s t re n g t h s a n d m a r k e t po s i t i o n
Diversified portfolio structure to mitigate macro risks; Share of IT services & software increased substantially
Portfolio value by sectors % | Portfolio valuation relative to acquisition costs decreased | ||||||||||
ytd | |||||||||||
100% | |||||||||||
Portfolio by sector | 31.12.2023 | 30.09.2023 | 30.09.2022 | ||||||||
Industry and industrial | 32% | (IFRS value / | |||||||||
36% | 36% | acquisition costs) | |||||||||
technology | |||||||||||
Industrial sectors | 1.1x | 1.2x | 1.1x | ||||||||
Industrial services | 11% | 14% | 14% | ||||||||
Growth sectors | 1.2x | 1.3x | 1.3x | ||||||||
10% | |||||||||||
Broadband | 28% | 13% | |||||||||
telecommunications | 24% | Total | 1.0x | 1.1x | 1.0x | ||||||
Growth | |||||||||||
IT services & software | 21% | ||||||||||
5% | sectors | ||||||||||
Healthcare | 3% | 7% | |||||||||
11% | |||||||||||
Others | 17% | 13% | |||||||||
5% | |||||||||||
30.9.2020 | 30.9.2022 | 31.12.2023 |
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S t r a t e g y , c o m pe t i t i v e s t re n g t h s a n d m a r k e t po s i t i o n
Market-leading position; High proportion of family
successions reflecting DBAG's reputation
-
DBAG MBOs 2013-2023
23%
Families and founders | 60% | ||
Corporate spin-offs | 17% | ||
Financial investors
- of transactions in German MBO market by PE company, 2013-2023 (enterprise value €50-250mn)
30 | ||||||||||||||||||||||
22 | 19 | 15 | 15 | 15 | ||||||||||||||||||
13 | 12 | |||||||||||||||||||||
11 | 11 | |||||||||||||||||||||
DBAG | Competitors |
Sellers of German mid-market MBOs 2013-2023
36%
52%
Families and founders | |
Corporate spin-offs | |
Financial investors | 12% |
Source: FINANCE, DBAG
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S t r a t e g y , c o m pe t i t i v e s t re n g t h s a n d m a r k e t po s i t i o n
Broad platform for equity solutions for Mittelstand companies
MBOs alongside DBAG funds
Equity investment €40-220mn
Holding period up to five years
Long-Term Investments
Equity investment €15-35mn
Holding period seven years and longer
Investment case
- Strong market position
- Value creation potential
Regions
- D/A/CH
- Northern Italy
Sectors
- Industry and industrial technology, Industrial services
- Growth sectors
Management
- Entrepreneurial management team
- Alignment through own investment in portfolio company
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Deutsche Beteiligungs AG published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2024 08:17:01 UTC.