Deutsche Beteiligungs : Annual Report 2020/2021

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 L O N G - T E R M P L A N N I N G . S U S T A I N A B L E G R O W T H .	1

Long-term

planning

Success through responsible investments

Sustainable

growth

A N N U A L R E P O R T

2 0 2 0 / 2 0 2 1

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 LONG -TERM PL ANNING . SUSTAINABLE GROW TH .

L O N G - T E R M S U C C E S S

mn				678.5
451.5	470.7	472.1	422.0
2016 / 2017	2017/ 2018	2018 / 2019	2019 / 2020	2020 / 2021

NET ASSET VALUE Net asset value of Private Equity Investments rose by

256.5 million euros to 678.5 million euros, largely reflecting the strong per- formance of the portfolio companies. Taking into account the distribution to the Company's shareholders (12.0 million euros) and the capital increase (99.9 million euros), this amounts to a 39.9 per cent increase within the financial year.

mn				18.0
			9.5
4.7	5.6
		3.0
2016 / 2017	2017/ 2018	2018 / 2019	2019 / 2020	2020 / 2021

E A R N I N G S F R O M F U N D I N V E S T M E N T S E R V I C E S Markedly higher income from Fund Services and cost discipline contributed to earnings from Fund Investment Services that once again exceeded the original expectations. The result of 18.0 million euros represents an increase of 90 per cent compared to the previous year.

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F I N A N C I A L Y E A R 2 0 2 0 / 2 0 2 1

N E T A S S E T

VA L U E

678.5

M I L L I O N E U R O S

E A R N I N G S F R O M F U N D

I N V E S T M E N T S E R V I C E S

18.0

M I L L I O N E U R O S

		1.50		1.60
1.40	1.45
				4.5
			0.80
3.9	3.5	4.4
		2.4
2016 / 2017	2017/ 2018	2018 / 2019	2019 / 2020	2020 / 2021

Dividend (in €)		Dividend yield
2020 / 2021: proposal		(based on annual average share price %)

D I V I D E N D A N D D I V I D E N D Y I E L D The proposed dividend is in line with the unchanged dividend policy, which was suspended in the previous year on account of the pandemic. The proposed dividend of 1.60 euros per share is above the market expectations and equates to a dividend yield of 4.5 per cent, in relation to the average share price for the year.

S H A R E H O L D E R S ' D I V I D E N D Y I E L D

4.5

P E R C E N T

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 LONG -TERM PL ANNING . SUSTAINABLE GROW TH .

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Contents

A V E R Y S U C C E S S F U L Y E A R :

/t a glance

C L I M AT E P R O T E C T I O N O N T H E F O U N D R Y F L O O R

How Silbitz Group

contributes to the energy

transition

8

21

• H I G H LY AT T R A C T I V E A S S E T C L A S S

Investing in private

equity with the DBAG share

	S U S TA I N A B I L I T Y
12	AT D B A G
Taking ecological and social
criteria into consideration

	D I G I TA L S O L U T I O N S
	A N D T H E I R C O M P E L L I N G
25	B E N E F I T
Why employees are key to
	Cloudflight's success

30

3 3 C O M B I N E D M A N A G E M E N T R E P O R T

1. Business overview
2. Fundamental information about the Group

54 Business review of the Group

82 Financial review of Deutsche Beteiligungs AG (Commentary based on the German Commercial Code - HGB)

87 Risk management system

98 Report of expected developments

L E G E N D

URL /cross-reference

1 0 5 C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

1. Consolidated statement of comprehensive income
2. Consolidated statement of cash flows
3. Consolidated statement of financial position
4. Consolidated statement of changes in equity
5. Notes to the consolidated financial statements

17 2 I N D E P E N D E N T A U D I T O R ' S R E P O R T

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1 8 0 R E S P O N S I B I L I T Y

S TAT E M E N T

1 8 1 C O R P O R AT E G O V E R N A N C E

1. Report of the supervisory board

1. Remuneration report

1. Takeover-relatedDisclosures

2 0 1 I N F O R M AT I O N

1. Contact

1. Imprint
2. Ten-yearfinancial summary

1. Financial Calendar

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A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 L O N G - T E R M P L A N N I N G . S U S T A I N A B L E G R O W T H .

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T O R S T E N G R E D E	J A N N I C K H U N E C K E	S U S A N N E Z E I D L E R	T O M A L Z I N
Spokesman of the	Member of the Board	Chief Financial Officer	Member of the Board
Board of Management	of Management		of Management

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 LONG -TERMPL ANN II NG .. SUSTA II NABLE GROW TH ..

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Dear shareholders,

Our success only becomes apparent when we sell the companies we have invested in. At this point it becomes clear how much they have grown, improved their structures, expanded their range of services - in short, how much they have developed. During the past financial year, we successfully agreed on or concluded the sale of four companies in which we had held an interest for between four and eight years. Their disposal enables us to realise the increase in value that has accumulated over time. 2020/2021 proved to be an extremely successful financial year, not least because we achieved higher than expected proceeds from disposals. Furthermore, the value of our other company investments increased overall. We benefited from capital markets tailwinds, mainly driven by the higher earnings multiples of listed peers, which compensated to some extent for what was lost due to the pandemic during the previous year. What is of greater importance to us, however, is that portfolio companies have been very much committed to implementing their strategies, mainly through acquisitions in 2021. We are reaping the rewards of having broadened our investment focus. Some companies from the growth sectors, in particular, are seeing better operating performance, while the industrial portfolio continues to offer catch-up potential.

As a result, the net asset value of Private Equity Investments has increased by 40 per cent within a year. When calculating this figure, we have taken into account the distribution you received in February 2021 as well as the additional capital you provided in the spring. This net increase is far greater than we announced at the beginning of the financial year.

In our second business segment, we are reaping the fruits of the previous business year: earnings from Fund Investment Services totalled 18.0 million euros, almost twice as much as in the previous year. This was attributable to higher income from Fund Services, and marks the first full financial year for which we have earned fees from our new fund, DBAG Fund VIII. This stable and highly reliable income contributes to the financing of our business operations and our ability to pay dividends. The capital markets are keeping an eye on this performance indicator and clearly attribute value to this business.

A 40 per cent increase in net asset value, almost doubling earnings from Fund Investment Services, and, at 185.1 million euros, a net income figure that is by far the highest since the introduction of IFRS accounting 16 years ago - 2020/2021 was without doubt an exceptional year. This applies not only to the Company's business performance, but also to the circumstances under which this performance was achieved. Our employees worked from home for most of the year. In addition to the associated personal burdens, it was particularly challenging for our busi- ness, which thrives on exchange, communication, and face-to-face meetings. We would like to thank all of our colleagues for their huge commitment.