Annual Report
2013/2014
DRIVING
EXPANSION.
ENSURING
CONTINUITY.
MAKING STRONG
COMPANIES STRONGER.

Our Portfolio

REVENUES
9.3
PERCENT GROWTH

REVENUES

The 14 companies that were part of our portfolio throughout the financial year increased their revenues by 9.3 percent. This was calculated by comparing the companies’ expected revenues for 2014 (or their financial year ending in 2014) with revenues generated in 2013. The respective growth rate was weighted by the company’s share in the value of our portfolio. This increase is predominantly due to organic growth.


EARNINGS
12.1
PERCENT GROWTH

EARNINGS

The companies in the portfolio improved their earnings by 12.1 percent on average within one year. The indicator used is EBITDA (earnings before interest, tax, depreciation and amortisation) on tangible and intangible fixed assets. This was calculated by comparing the companies’ expected EBITDA for 2014 (or their financial year ending in 2014) with their EBITDA in 2013. The 14 companies that were in our portfolio throughout the financial year were included in the (weighted) calculation.


DEBT
2.4
TIMES EBITDA

DEBT

Our portfolio companies have debts amounting to less than 2.4 times their EBITDA on average. Two companies with no net liabilities were not considered in the calculation. The remaining 13 companies were included in the calculation for the average figure weighted by their share of the portfolio value. The calculation is based on the companies’ expected EBITDA and their net debt for 2014 (or their financial year ending in 2014).


VALUATION
7.3
TIMES EBITDA

VALUATION

Our portfolio companies’ valuation is based on 7.3 times their earnings on average, or to be more precise, 7.3 times their expected EBITDA for 2014 (or their financial year ending in 2014). Two companies were not valuated with the multiples method due to their strong growth. The remaining 13 companies were included in the calculation for the average figure weighted by their share of the portfolio value.


15
active investments

Portfolio

The bakery chain operates regionally: "Unser Heimatbäcker" is the market leader in northeast Germany with more than 500 outlets.

Portfolio

Stephan Machinery is one of the companies in the portfolio that make classical industrial goods and sell them worldwide.

DBAG offers the capital market shares that grant interest in a portfolio with currently 15 investments. We provide tailored equity solutions for the managers and partners of our portfolio companies. They can count on us in two ways: on the one hand, we give them scope to implement their business ideas and concepts that create value in the long term; on the other, thanks to our industry expertise and experience, we are sought after as a partner for supporting growth strategies and change processes. Just as the motto of this Annual Report says: Driving expansion. Ensuring continuity.

But what exactly does that mean? Why not take a look at our portfolio. For example, Broetje-Automation: the manufacturer of machinery and plants for aircraft assembly has boosted its expansion by acquiring two companies. Stephan Machinery is using additional equity to expand its range of machines for the food industry and establishing an international service and distribution network. Finally, “Unser Heimatbäcker”: the company that we added to our portfolio in the 2013/14 financial year is continuing its course with DBAG as a partner to consolidate its market and expand its position.

In the past financial year, our portfolio companies have developed well overall, as their average increase in revenues and earnings in 2014 shows. Our portfolio investments are growing and becoming more profitable. They are improving their strategic position in the market to secure existing jobs and create new ones. Their average growth in revenues and earnings far exceeds general economic trends. That shows what great potential the companies that our investment team has identified and reviewed. The 23 members of this team together combine more than 200 years of experience from investments in mid-sized German companies. We will use this experience to continue supporting our portfolio companies.

»OUR PORTFOLIO COMPANIES ARE GROWING AND BECOMING MORE PROFITABLE.«

The 15 companies in the table make up the active portfolio of Deutsche Beteiligungs AG as at the balance sheet date of 31 October 2014. In addition, the portfolio comprises investments in older international buyout funds with an investment period that expired more than five years ago, as well as a minor investment from an earlier disposal. More information on the current portfolio can be found online at www.deutsche-beteiligung.de/portfolio.

The eleven largest investments, accounting for around 81 percent of the portfolio value, are presented on the following pages.

CompanyRevenues 2014 €mnEmployeesCore business
Broetje-Automation GmbH,
Wiefelstede (Germany)
89
(FY 2013/14*)
550 Developer and manufacturer of machines and plants used to automate the assembly of aircraft for customers worldwide
Clyde Bergemann Group,
Wesel (Germany) / Glasgow (UK) /
Delaware (USA)
545
(US$, FY 2013/14)
1,800 Developer and manufacturer of components for power plants on three continents as well as global service business
DNS:NET Internet Service GmbH,
Berlin (Germany)
10* 30 Telecommunications and IT services based on high-quality fibre-optic infrastructure in Berlin and Brandenburg
FDG S.A.,
Orly (France)
111* 760 Services for supermarkets in France and other neighbouring countries
Formel D GmbH,
Troisdorf (Germany)
157* 4,500 Services for car manufacturers and their suppliers worldwide
Grohmann GmbH,
Prüm (Germany)
95* 790 Developer and manufacturer of plants for industrial automation worldwide
Heytex Bramsche GmbH,
Bramsche (Germany)
75* 305 Manufacturer of textile print media and technical textiles for customers worldwide
Inexio KGaA,
Saarlouis (Germany)
34
(FY 2013/14*)
170 Telecommunications and IT services based on high-quality optic-fibre infrastructure in Southwest Germany
JCK KG,
Quakenbrück (Germany)
575* 1,050 Textile retail business, mainly for discounters in Germany
Plant Systems & Services PSS GmbH,
Bochum (Germany)
28* 190 Industrial services for the energy and process industries in Germany and neighbouring countries
Romaco GmbH,
Karlsruhe (Germany)
113
(FY 2013/14*)
450 Developer and manufacturer of machines and plants for packaging technology serving customers worldwide
Schülerhilfe (ZGS Bildungs-GmbH),
Gelsenkirchen (Germany)
52* 350 Provider of education and tutoring services in Germany
Spheros GmbH,
Gilching (Germany)
197* 770 Developer and manufacturer of air conditioning units, heating systems, water pumps and roof hatches for buses with production facilities on three continents
Stephan Machinery GmbH (ProXES),
Hameln (Germany)
81* 3501 Developer and manufacturer of machines and processing lines for manufacturing liquid and semi-liquid food products
Unser Heimatbäcker GmbH,
Pasewalk (Germany)
107* 2,300 Bakery chain in northeast Germany

* Preliminary / expected

1 Including the acquisition of FrymaKoruma in 2014