Deutsche Beteiligungs AG – Positive Quarterly Results Frankfurt am Main, September 2004

Deutsche Beteiligungs AG – Positive Quarterly ResultsFrankfurt am Main, September 2004

2

Contents

3rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook Appendix

3rd Quarter 2003/2004- Changes to portfolio- Profit and loss account

1st – 3rd quarter 2003/2004- Financial results- Sources of income and expenses- Debts and investments- Share- Developments of markets

Outlook

Appendix

3rd quarter of FinancialYear 2003/2004

43rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook

Appendix

3rd Quarter 2003/2004 – Changes to the portfolio

Home Care Supply realized- Due to deteriorated exchange rate of

the dollar, no appreciable capital gain

Silent participation in HKL Baumaschinen GmbH repaid at nominal value, as scheduled

(Residual) interest in Schubert-&-Salzer GmbH (MBO entered in the 90s) sold

- Book value < € 0.3 mn=> Share of MBOs (direct and indirect) in the portfolio increased again

October 31, 2003 60.9%April 30, 200467.7%July 31, 2004 69.2%

53rd quarter 2003/2004 1st – 3rd quarter 2003/2004 Outlook

Appendix

3rd Quarter 2003/2004 – Profit and loss account

Positive result: € 0.6 mn, 3rd quarter previous: € 0.01 mn

- No appreciable net realized gains- Stable current and one-time income

from investments- Growing cost recovery through fee

income from fund management business

Losses from investment disposals (€ 0.6 mn) due to exchange rate effects

Downward value adjustments € 0.5 mn - Essentially one smaller US investment

1st – 3rd quarter of Financial Year 2003/2004

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Nine-months-results

thousands of €1 Nov 2003 -

31 Jul 20041 Nov 2002

– 31 Jul 2003

Income from investments and gains from investment disposals

17.379 21.269

Losses from investment disposals 1.016 1.482

Write-offs 3.040 16.532

Other operating income 9.318 13.124

Personnel costs 7.942 5.643

Other operating expenses 8.625 7.771

Net interest -1.916 -2.510

Result of ordinary activity 4.158 455

Taxes 18 334

Consolidated net income 4.140 121

Earnings per share (€) 0.22 0.01


8

Major sources of Income

Income from investments and gains from investment disposals

1st – 3rd quarter 2003/2004 € 17.4 mn1st – 3rd quarter 2002/2003 € 21.3 mn

- Profit distribution Harvest Partners IV- Profit distribution subsequent to sales in preceding

years- No other appreciable net realized gains

Other operating income 1st – 3rd quarter 2003/2004 € 9.3 mn 1st – 3rd quarter 2002/2003 € 13.1 mn

- Higher management-fee income through new co-investment fund DBAG Fund IV

- Structuring fees- Previous year: valuation uplifts


9

Major expenses

Other operating expenses1st – 3rd quarter 2003/2004 € 8.6 mn1st – 3rd quarter 2002/2003 € 7.8 mn

- Higher one-time charges (capital increase€ 2.6 mn)

Personnel costs 1st – 3rd quarter 2003/2004 € 7.9 mn 1st – 3rd quarter 2002/2003 € 5.6 mn

- Changes to Board of Management- Performance-related remuneration- Allocations to provisions


10

Balance sheet structure improved

Equity ratio rose to 69.6% (31 October 2003: 54.4%)

Assets (€ mn) 31 Jul 2004

31 Oct 2003

Liabilities (€ mn)

31 Jul 2004

31 Oct 2003

Long-term assets

269.7 256.9 Equity 215.0 158.7

Current assets 31.7 29.9 Provisions 19.9 18.6

Cash balance 7.3 5.1 Liabilities to banks

Other liabilities

34.0

39.8

75.8

38.8

308.7 291.9 308.7 291.9


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Debt significantly reduced

Net-liabilities to banks

0

20

40

60

80

100

120

140

Apr 02 Jul 02 Oct 02 Jan 03 Apr 03 Jul 03 Oct 03 Jan 04 Apr 04 Jul 04

€ mn


12

Increase of Investments

Data on 2002/03 and 2003/04 adjusted for effects from interim financings

0,0

10,0

20,0

30,0

40,0

50,0

60,0

2001/2002 2002/2003 I - III-2003/2004

€ mn


13

Shares trade 24% below fair value

S-Dax (indexed)

DBAG (adjusted)Dax (indexed)

FTSE InvestmentCompanies (indexed)

Fair Value

5

6

7

8

9

10

11

12

13

14

2.1.03 2.4.03 2.7.03 2.10.03 2.1.04 2.4.04 2.7.04

Euro


Fair value determined semi-annually (most recently at April 30, 2004)

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Satisfactory market development


Stable dealflow- Corporate spin-offs predominate- Secondary buyouts increasing

High liquidity- Market entry by new banks

overcompensated other institutes retreating

Growth trend still intact

Market drivers remain effective

Outlook

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Previous year's result exceeded


Principal target level:Return on equity of 15% before taxes on long-term average- Will not be achieved in 2003/2004

Fair Value- Uplift in first six months: +7,9%- New investments developing very

satisfactorily; recognition in fair value for FY 2004/2005

Expectations for 2003/2004: Previous year's net income (€ 3.1 mn) will be exceeded- Net income up to 3rd quarter: € 4.1 mn- Potential for dividend payment

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Deutsche Beteiligungs AG – Stocks with scope

Portfolio with appreciation potential

Successful investment strategy

Balance sheet structure strengthened for new investments

Shares traded below fair value

Deutsche Beteiligungs AG – a good opportunity to invest


Appendix

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Total equity

Total equity (less dividend)Total equity (less dividend)

92108

173 172155

214

158

0

50

100

150

200

250

€ mn

31.10. 31.10. 31.10. 31.10. 31.10. 31.10. 31.07. 1998 1999 2000 2001 2002 2003 2004


20

Long-term assets

31.10. 31.10. 31.10. 31.10. 31.10. 31.10. 31.7.

1998 1999 2000 2001 2002 2003 2004


Book value of investments (purchase costs or lower)

211231

252292

270 257 270

0

50

100

150

200

250

300

350

€ mn

21

Net profit

consolidated since 2000/01

Net income/loss

21

3832

9

-16

4.13.0

-20

-10

0

10

20

30

40

50

97/98 98/99 99/00 00/01 01/02 02/03 03/04(1st-3rd

quarter)

€ mn


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Valuation principles according to International Accounting Standards (IAS)

Valuation principles based on IAS rules

Valuation based on- stock market prices- purchase offers- comparable transactions- Multiples method based on various

financial data (EBIT, sales, net asset value and peer-group or industry comparisons)

- “sum of the parts” valuation


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Fair value of portfolio discloses valuation reserves

Valuation guidelines based on IAS rules

Disclosure of fair value since end of FY 2001/2002

€ 311.7 mn € 284.1 mn

€ 27.6 mn

Status: 30 April 2004

Currentmarket value

UnrealizedappreciationNet asset value, based on German Commercial Code (acquisition cost or lower)

Fair value


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DBAG Fund IVDeutsche

Beteiligungs AG

Structure of fund co-investment

Target company

~ 60 %

~10 %

Management of target company

~ 30 %

1 % investment by carry team of Deutsche

Beteiligungs AG

Fee income for cost coverage

Access to larger transactions through additional financings (“co-investment funds”)

Equity investment structure

1 2:

Benefits


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10 largest investments represent ~ 62% of book value

Status: 31 July 2004

Company Dateof

invest-ment

Bookvalue€ mn

Percentage

owned

Percentage of DBAG portfolio

Type Sales 2003 € mn

Industry

Harvest Partners Intl. IV

04/01 32.0 11.7 % 11.9 % Fund n.a. US Fund

Bauer AG 09/96 27.6 41.2 % 10.3 % Growth 581 Special construction

Homag AG 01/97 22.6 21.4 % 8.4% Growth 615 Wood processing machinery

schlott gruppe AG 12/99 17.4 14.0 % 6.5 % MBO 614 Media systems provider

Hörmann KG 05/97 13.7 28.0 % 5.1 % Growth 350 Industrial Service

Harvest Partners Intl. III

10/97 13.2 6.9 % 4.9 % Fund n.a. US Fund

AKsys GmbH 12/01 12.6 10.1 % 4.7 % MBO 356 Automotive acoustics

Lund Intern. Holdings Inc.

09/97 11.2 10.1 % 4.2 % MBO 153 Mio.$

Automotive accessories

Babcock Borsig Service GmbH

11/03 8.6 27.5 % 3.2 % MBO 340 Industrial Service

Coveright Surfaces GmbH

07/03 8.5 14.1 % 3.2 % MBO 262 Surface materials

TOTAL TOP TEN 167.4 62.4%


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Development of fair value

Fair value = book value of equity per share (HGB) +

valuation reserves per share

Portfolio valued according to IFRS rules

Valuation at 30 April 2004 based on expected business situation 2004

€12.42*

€10.90*

€12.91€11.97*

* Adjusted for effects of capital increase

€11.43€10.85€10.63€10.63

€1.48€1.12

€0.27€1.79

Oct 02 Apr 03 Oct 03 Apr 04Equity Valuation reserve


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Contact and Information

Stock abbreviation: Reuters: DBAG.FBloomberg: DBA

ISIN-Code: DE0005508105

Stock market trading with official listing in PRIME STANDARD

Indices: S-DaxC-Dax-Industrial

For more information: www.deutsche-beteiligung.comDeutsche Beteiligungs AG Investor RelationsKleine Wiesenau 1 Thomas Franke60323 Frankfurt am Main Phone.: +49 69 95787-307Phone.: +49 69 95787-01 Fax: +49 69 95787-391

Email: [email protected]

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Forward-looking statements

This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Any statement in this presentation that states our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a forward-looking statement. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Beteiligungs AG. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere, the geographic focus of our investment activity.

Documents

Deutsche Beteiligungs AG – Positive Quarterly Results Frankfurt am Main, September 2004