Every day counts - Deutsche Beteiligungs AG

Annual Report 2002/2003
Every day counts

Our business thrives on the creativity, motivation,
and professional skills of our people. Their job is to
identify the right target companies, develop their
growth potential and, ultimately, profitably realize
the investments.
This Annual Report depicts typical scenes from our
investment team’s daily routine. Three management
buyouts were contracted this past financial
year – the result of personal dedication and hard
work. Preparing for a new, attractive investment is
similar to preparing for an athletic contest in many
disciplines: contacts are helpful, professional skill
pays off, competence is essential, complexity is a
challenge, experience is indispensable, time is key.
Every step is important. Every single day counts.
This Annual Report presents a brief impression.
Deutsche Beteiligungs AG · Annual Report 2002/2003

Deutsche Beteiligungs AG · Annual Report 2002/2003
Financial Highlights
Investments 30.3 Mio. € 29 Mio. €
Portfolio volume 299.7 Mio. € 313.1 Mio. €
Number of investments 43 49
See page 27
Consolidated result before taxes 4.4 Mio. € –15.9 Mio. €
Consolidated net income/loss 3.1 Mio. € –15.8 Mio. €
See pages 4 and 63
Equity (Oct. 31) 158.4 Mio. € 155.1 Mio. €
Return on equity 2.8 % n.a.
Equity per share (Oct. 31) 11.32 € 11.08 €
Fair value per share (Oct. 31) 12.48 € 12.95 €
See pages 10 and 11
Consolidated earnings per share 0.22 € –1.13 €
Dividends none 1 none
See pages 4, 63 and 64
1 Recommended by Supervisory Board and Board of Management
November 1, 2002 to December 31, 2003
in €
14
12
10
8
6
4
2
0
2002/2003 2001/2002
One-year comparison
Shares of Deutsche Beteiligungs AG, indexed S-Dax and Dax performance indices and fair value of the shares at
October 31, 2002, April 30, 2003, and October 31, 2003
Fair Value
Dax
(indexed)
Nov. 02 Feb. 03 May 03 Aug. 03 Nov. 03
DBAG
S-Dax
(indexed)

Deutsche Beteiligungs AG · Annual Report 2002/2003
Successful together – Partnership with Harvest drives Casco Surfaces deal
Casco Surfaces has been in the portfolio since July 2003. A key argument for the seller,
Netherlands-based Akzo Nobel N.V., was our partnership with Harvest Partners: Casco
Surfaces generates some 40 percent of its sales in North America – where Casco plans
to grow, in part by add-on acquisitions. Harvest Partners will be there to help. More on
this cross-border transaction on page 24.
2002/2003: Transaction overview
Safeguarding continuity – Management buyout of Preh Werke
Preh Werke is another joint acquisition with management and our co-investment fund.
A further investor is Rosemarie Preh: having the company founder’s family represented
in the shareholder base was important to Preh’s management and the seller, Rheinmetall
AG; we appreciate that continuity too. Read about upcoming opportunities for this
automotive supplier on page 35.
Pursuing growth targets – Babcock Borsig Service financed on sound base
Separating an internationally-operating group of companies out of pending insolvency
proceedings without damaging its business and arranging a new sound financial base
– that was a special challenge even to Deutsche Beteiligungs AG with its 40-year track
record. We contracted the purchase of the Babcock Borsig group’s service division in
August 2003. See page 36 for more information on how to create value through service
and maintenance for power plants.
228 million euros for co-investment fund – Investors confide in the team
With DBAG Fund IV, Deutsche Beteiligungs AG expanded its shareholder base: 20 investors,
18 of whom were not yet among its equity financiers, committed an average of 11 million
euros. Five management buyouts have been financed by Deutsche Beteiligungs AG
and the new parallel fund to date. Some 100 million euros have been planned for futher
investments in each of the next two years. An account of the fund and its investment
strategy begins on page 19.
Return target achieved – Realizations attest to investment strategy
Edscha AG, Andritz AG, Global Power Equipment Group Inc.: three management buyouts
were profitably realized this past financial year. The invested capital was approximately
doubled within three years, measuring up to the Company’s return target of 25 percent
p.a. For a presentation of these realizations, refer to pages 36 and 37.
Three smaller holdings sold – Strategy persistently pursued
Three of the smallest holdings – Heylo Energietechnik GmbH, the Vogel group, and
Vitas Inc. – were sold from the portfolio. The number of expansion financing investments
therefore declined further – in line with the Company’s strategy. See page 43 for
details on changes in the business field of expansion financing.
➜

Deutsche Beteiligungs AG · Annual Report 2002/2003
Contents
Letter from the Board of Management
Shares
Corporate Governance Report
Corporate Review – Market and Strategy
Corporate Review – Investment profile
Corporate Review – Investments
Development of the portfolio
Management buyouts
Expansion financing
Investments in funds
Portfolio profile
Management’s Report
Market development
Group structure
Development of the portfolio
Results
Financial position
Risk management
Generation of investment opportunities
People
Events subsequent to the closing date
Outlook
Financial Statements
Consolidated Balance Sheet
Consolidated Profit and Loss Account
Consolidated Cash Flow Statement
Notes to the Consolidated Financial Statements
Auditors’ Report
Report of the Supervisory Board
Declaration of Conformity to
German Governance Code
List of Investment Holdings
Members of the Supervisory Board
and Board of Management
Glossary
Financial Calendar
Imprint
2
6
16
19
24
27
27
33
43
51
57
61
61
62
62
63
65
65
67
68
69
69
71
71
72
73
74
85
86
88
90
91
94
96
96
1

Deutsche Beteiligungs AG acquires growth-prone,
profitable subsidiaries and mid-sized companies that are
well positioned in their marketplaces – in Germany,
selected European countries and the United States.
We realize the development and profit potential inherent
in these companies jointly with their managements.
Through this entrepreneurial commitment, we strive to build
the value of our investments. Our shareholders profit from
these activities when we ultimately resell these investments.
Internationally, we work alongside partners pursuing
similar goals. This partnership opens attractive investment
opportunities in key markets. We strive to balance the portfolio
– geographically and across industries.
We not only invest the capital of Deutsche Beteiligungs
AG. Institutional investors have charged us with the
management of private equity funds. This enhances the
financial scope for our future investing activities.
Our objective is to develop the portfolio of Deutsche
Beteiligungs AG, thereby increasing the value of the
Company for our shareholders. We aim to have our
shares outpace the market.
2

Wilken Freiherr von Hodenberg
born 1954
Member of the Board of
Management and its Spokesman
since July 2000.
Studied law in Hamburg and
Lausanne. 15 years of experience in
investment banking, three years
of service as an executive for a
retail chain.
Torsten Grede
born 1964
Member of the Board of
Management since January 2001.
Studied business administration
in Cologne and St. Gallen following
a bank traineeship. 13 years of
experience in private equity at
Deutsche Beteiligungs AG.
Reinhard Löffler
born 1944
Member of the Board of
Management since August 1989.
Studied industrial engineering
at the University of Karlsruhe.
14 years of experience in mid-sized
industry. In 1985 he joined WFG
Deutsche Gesellschaft für Wagniskapital
mbH, a predecessor of
Deutsche Beteiligungs AG.
André Mangin
born 1954
Member of the Board of Management
since January 2004. Studied
law at the University of Hamburg.
More than 15 years of experience
in private equity, corporate finance,
and investment banking.
Dr. Rolf Scheffels
born 1966
Member of the Board of Management
since January 2004. Studied business
administration and economics at the
University of Frankfurt/Main. Began
his career in an auditing firm. More
than ten years of experience in
private equity and corporate finance,
seven of which at Deutsche Beteiligungs
AG.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Letter from the Board of Management
LETTER FROM THE BOARD OF MANAGEMENT
Deutsche Beteiligungs AG recorded a successful financial year
2002/2003: compared with the previous year, earnings improved
markedly. The Company’s stock outperformed the Dax, Germany’s
key benchmark market index. By the end of the financial
year, we had contracted three management buyouts – proof of
our strong position in the German private equity market. The
successful closing held for DBAG Fund IV documents the competence
attributed to the Company in private equity.
The consolidated result would have been better, had the difficult
economic environment not impacted operations again. Our
investments in the United States suffered from the sluggishness
in the economy, requiring modifications in the valuation of one
fund and three enterprises.
3

LADIES AND GENTLEMEN,
DEAR SHAREHOLDERS:
4
This past financial year, the investment team of Deutsche Beteiligungs AG proved its
calibre in a number of fields. We succeeded in profitably selling three investments from
the portfolio, realizing returns far in excess of those achieved on respective capital markets.
Furthermore, we contracted three mangement buyouts in 2003 – impressive proof of
our leadership position in Germany’s buyout business. Another highlight: the successful
completion of our fund-raising campaign. Investors are apt to entrust their capital to
those investment firms capable of creating and realizing value and, in addition, those
able to access attractive investment opportunities. A large part of the total capital that
investors committed to management buyouts in Germany in the mid-market segment in
2002/2003 was channeled to our new DBAG Fund IV co-investment fund.
Despite the improvement of nearly 19 million euros, however, the consolidated result
is not in keeping with our expectations. With consolidated net income at 3.1 million euros,
we have returned to the profit zone. However, the consolidated net income does not
offset the loss carried forward from the previous year. We will therefore recommend
not disbursing cash dividends this year. Our intention is to strengthen the Company’s
financial base.
Portfolio companies’ performance differs
Our portfolio is diversified: investments are disseminated across different sectors of the
economy and geographic regions. This mitigates risk exposure when a cyclical downturn
is particularly pronounced in an industry or economic region. In 2002, German portfolio
companies were among the investments hit by the slowdown in the economy, necessitating
a modification of their valuation. In 2002/2003, however, valuation adjustments
were exclusively performed on investments in the United States, thereby impacting the
otherwise good income position achieved through realizations this year.
Corrections to the valuation of investments in the portfolio amounted to 16.8 million
euros. These largely relate to one fund investment and three direct investments. The
past year was a year of slow growth, particularly in the United States, which weighed
heavily on our American portfolio companies. A number of them even had to cope with
shrinking markets; these enterprises may have improved their market positions, but have,
nevertheless, forfeited earnings power for the time being.
The valuation adjustments performed this year contain scope for the future. We expect
that the enterprises concerned will master the challenges and return to substantially
increased growth when the economy revitalizes. We feel confident that we will then be
able to reverse these valuation modifications in part or completely – as was done on
four portfolio investments this past financial year.
Shares outperform the Dax
The price movement of our shares mirrors the positive assessment by capital market
players for private equity in general, and for Deutsche Beteiligungs AG in particular. With
growth rates expected to rise, market observers feel that the current economic situation
creates good opportunities for investments at attractive terms. The new investments of
the past financial year demonstrate our ability to access such opportunities.

Changes to the Board of Management
Helmut Irle will be leaving the Board of Management of Deutsche Beteiligungs AG on
the best of terms and by mutual agreement at the end of January 2004. The Supervisory
Board has appointed Senior Vice Presidents André Mangin and Dr. Rolf Scheffels to the
Board of Management, effective January 1, 2004. The Board of Management of Deutsche
Beteiligungs AG will thus consist of Wilken Freiherr von Hodenberg (Spokesman), Torsten
Grede, Reinhard Löffler, André Mangin, and Dr. Rolf Scheffels.
Outlook
In the coming months, we plan to utilize the investment opportunities available in the
market. We are currently investigating a number of attractive potential investments. The
favorable position we have in the market constitutes a major competitive advantage in
making new transactions – as the investments of this past financial year demonstrate.
The past three financial years have shown that capital markets have a considerable
impact on our line of business. Our profitable realizations are proof of our ability to exit
investments independent of the stock exchange.
We feel confident that Deutsche Beteiligungs AG will continue its pattern of progress
this current year. Our investee businesses have exhibited resilience in a difficult economic
environment, and the Company is well placed for future investing activity, drawing on a
national and international network and a track record of nearly 40 years in private equity.
We are convinced that the more favorable economic outlook and our entrepreneurial
commitment to our portfolio companies will be reflected in a rise in the fair value of our
shares and in higher share prices.
January 2004
(Wilken Frhr. von Hodenberg) (Torsten Grede) (Reinhard Löffler)
(André Mangin) (Dr. Rolf Scheffels)
Deutsche Beteiligungs AG · Annual Report 2002/2003
Letter from the Board of Management
5

6
Share price on uptrend
SHARES – CAPITAL MARKET HONORS
MARKET POSITION
The shareholders of Deutsche Beteiligungs AG experienced
a volatile financial year. Impacted by the adversities on
equity markets, the price of the Company’s stock dropped to
an all-time low of 6.07 euros, before resurging in July. Traded
clearly below the book value of the equity until summer,
the shares of Deutsche Beteiligungs AG responded to a reassessment
of the private equity market. Above all, however,
the share price recovery, doubling in the second half of the
financial year, mirrors the excellent market position that
Deutsche Beteiligungs AG enjoys. Currently, our shares are
traded in excess of their book value – as has virtually always
been the case since the Company’s stock market listing.
Volatile stock market year
The price of our shares proved volatile for shareholders and investors this past financial
year. The gyration reflects the course of the Company’s business, in addition to the
general sentiment on capital markets. Following a term of relative stability with moderate
turnovers at the beginning of the 2002/2003 financial year, prices dropped in mid-
December by more than 15 percent to seven euros. This fall was triggered by the withdrawal
of at least one institutional investor from the insurance industry.
Until April, the stock of Deutsche Beteiligungs AG followed the stock market trend,
but then persisted at low levels of between 7.50 euros and 6.15 euros in May, when
the Dax and S-Dax began to rise. In July, the price of our stock jumped to levels of ten
euros within only a few days, thereby again connecting up with the stock market development.
We trace this back to three influencial factors:
• The capital markets’ assessment of private equity companies had clearly improved.
• Deutsche Beteiligungs AG was able to issue a series of positive news releases.
• Finally, we intensified investor relations activities in summer and won new investors.
Following another rise at the end of the financial year, our stock had caught up with
the S-Dax, in which it is indexed as one of 50 securities.

November 1, 2002 to December 31, 2003
in €
14
12
10
8
6
4
2
0
From November 1, 2002 to October 31, 2003, the price of our shares (Xetra closing
quotation) was up from 9.37 euros to 13.00 euros. This corresponds to an improvement
of 38.7 percent. By December 31, 2003, the share price again fell to 10.81 euros. From
November 1, 2002 to October 31, 2003, the Dax – the general measure for capital market
performance in Germany – improved by 16.0 percent (at December 31: 25.8 percent).
The S-Dax gained 41.1 percent in the course of the year (at December 31: 41.1 percent),
developing similarly to the shares of Deutsche Beteiligungs AG.
Market capitalization of Deutsche Beteiligungs AG amounted to 182.0 million euros
at the balance sheet date on October 31, 2003 (December 31, 2003: 151.34 million
euros). The market capitalization attributable to the free float (42.42 percent) was 77.20
million euros (December 31, 2003: 75.55 million euros – in addition to the price movement,
this mirrors the increase in the portion of free float, see page 12).
Turnover of shares still unsatisfactory
Fair Value
DBAG Dax
(indexed)
Nov. 02 Feb. 03 May 03 Aug. 03
Nov. 03
The shares of Deutsche Beteiligungs AG experienced an unusual degree of volatility
in the 2002/2003 financial year. Their highest price point, reached on the final day of
the financial year, is more than double the rate of its lowest price point on April 28,
2003.
On average, 7,300 shares were traded daily, which is considerably more than for the
two preceding financial years. Trading volume, however, declined to 16.0 million euros,
down from 21.5 million euros the prior year. The Company’s stock is predominantly
Xetra-traded (70 percent). 21 percent of the turnover is transacted on the Frankfurt
Stock Exchange. Of the volume traded on regional stock exchanges, Stuttgart accounts
for more than half of the turnover.
In total, the liquidity of our shares is still unsatisfactory. To augment investments by
institutional investors, a further improvement in stock liquidity is desirable.
Deutsche Beteiligungs AG · Annual Report 2002/2003
S-Dax
(indexed)
Shares
One-year comparison
Shares of Deutsche Beteiligungs
AG, indexed S-Dax and Dax
performance indices and fair
value of the shares at October
31, 2002, April 30, 2003, and
October 31, 2003
Market capitalization
at financial year-end
Mio €
600
500
400
300
200
100
0
1998/1999 1999/2000 2000/2001 2001/2002 2002/2003
Higher market capitalization
Average daily turnover
Shares
12,000
10,000
8,000
6,000
4,000
2,000
0
1998/1999 1999/2000 2000/2001 2001/2002 2002/2003
Greater liquidity targeted
7

8
Free float increased
Admission to Prime Standard
The platform for higher liquidity this current financial year is promising: in November
2003 SchmidtBank announced that they have completely disinvested their block of shares,
as had been anticipated. This bank, one of the founders of Deutsche Beteiligungs AG,
had been prompted by its new shareholders to reduce its holdings. Nine institutional
investors, primarily based in Great Britain, have acquired the shares previously held by
SchmidtBank in a secondary offering. Through the split-up of this former 7.5 percent
stake, the free-float share of our stock grew by nearly one sixth to 49.9 percent.
Firm position in the S-Dax
Following the re-segmentation of the Frankfurt Stock Exchange at the beginning of
2003, Deutsche Beteiligungs AG was one of the first companies to be admitted to the
Prime Standard. The Prime Standard is the admission segment for companies wanting
to present themselves to an international investors’ community. In addition to fulfilling
the requirements of the General Standard, which constitutes the statutory minimum
standard of the Official Market or Regulated Market, companies admitted to the Prime
Standard must meet high international standards of transparency.
Admission to the Prime Standard is a prerequisite for inclusion in one of the stock
indices, such as the S-Dax. Other criteria are market capitalization and turnover; however,
only the free float is used to measure the market capitalization.
Based on the average market capitalization in October 2003, the shares of Deutsche
Beteiligungs AG ranked 83rd among those companies eligible for the M-Dax (50 participants)
and the S-Dax (another 50 participants). Thus, measured by the market capitalization
of the free float, our stock currently exhibits a firm position for inclusion in the S-Dax
index. Measured by average daily turnover, however, at the end of October 2003 the
shares of Deutsche Beteiligungs AG had only ranked 108th among the Prime Standardlisted
companies not indexed in the Dax or TecDax. In addition to these two measurable
criteria, the German Stock Exchange considers further factors for the composition of its
indices, including the past development exhibited by a company or its industrial sector.
We expect that the shares of Deutsche Beteiligungs AG will continue to be indexed in
the S-Dax averages. Nonetheless, enhancing the liquidity of our shares is a key goal in
anchoring this position.

Shares of Deutsche Beteiligungs AG:
Key figures and information
2002/2003 2001/2002 2000/2001
Cash flow1 per share in € 0.96 0.77 1.40
Equity per share in € 11.32 11.08 12.77
Fair value per share in € 12.48 12.95 n.a.
Number of shares 14,000,000 14,000,000 14,000,000
Subscribed capital at Oct. 31 in € 36,400,000 36,400,000 36,400,000
Highest price point in € (Xetra) 13.00 23.70 42.75
Lowest price point in € (Xetra)
Closing rate at Oct. 31 in €
6.07 7.12 16.25
(Xetra closing rate) 13.00 9.37 19.90
Market capitalization at Oct. 31 in Mio. € 182.0 129.5 278.6
Price/earnings ratio at Oct. 31 59.09 2 n.a. 30.15 2
Price/equity ratio at Oct. 31 1.15 3 0.83 3 1.56 3
Price/fair value ratio at Oct. 31 1.04 0.72 n.a.
Dividends in € (incl. tax credit) none 4 none 0.71
Average weekly trading volume (shares) 38,478 24,549 31,725
First traded December 19, 1985
Most recent capital increase July 2000
1 Result of period plus write-downs/write-ups on long-term assets
2 Price in relation to consolidated earnings per share
3 Price in relation to consolidated equity per share
4 Recommendation by Board of Management and Supervisory Board
WKN 550810
ISIN DE0005508105
Abbreviation Reuters: DBAG.F Bloomberg: DBA
Stock exchanges Xetra, Official Market in Frankfurt and Düsseldorf;
OTC in Berlin, Bremen, Hamburg, Munich, Stuttgart
Market segment Prime Standard
Indices German Stock S-Dax (weighting in S-Dax at Oct. 31, 2003: 1.4789 %)
C-Dax Industrial Index C-Dax Industrial
Designated Sponsors Deutsche Bank AG
Lang & Schwarz Wertpapierhandel AG
Change in assessment
As opposed to the price movement this past financial year, the long-term cumulative
performance of our shares is unsatisfactory. The average compounded return to shareholders
(price gains, reinvestment of dividends, and subscription rights) for the five-year
period from November 1, 1998 to October 31, 2003 is negative at minus 7.7 percent.
However, investors holding Dax or S-Dax securities over the same period also had to waive
gains on their invested capital. The annual loss was 5.1 percent (Dax) and less than one
percent (S-Dax). In respect of the S-Dax, one point to consider is that its composition
changed markedly several times in recent years, limiting its use as a benchmark.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Shares
9

10
Disclosure of fair value
Valuation rules at
www.deutsche-beteiligung.de
Our complete valuation rules
are accessible through our
on-line information service.
There has been a change in capital markets’ assessment of our stock in recent years.
We are currently in the midst of a transition phase: since the beginning of the
2002/2003 financial year, we have been reporting the intrinsic value (fair value) of our
shares on a semi-annual basis, disclosing the unrealized value movement that results
from a current valuation of the portfolio in comparison to the book value. This is common
practice in comparable Anglo-Saxon private equity companies. We are thus
responding to a capital market demand which applies the intrinsic value of stock, determined
by internationally acknowledged accounting principles as a measure of performance.
In determining the unrealized appreciation – or valuation reserves – we apply the
rules laid down by the International Financial Reporting Standards (IFRS). The basis for
this is the current market value (fair value) of the portfolio. The valuation reserves represent
the net current value of our investments, which may be higher, or possibly also
lower, than the amounts carried in the balance sheet in conformity with the German
Commercial Code.
Fair value based on IFRS rules
The value of our investments is determined semi-annually in conformity with guidelines
that are based on IFRS rules and approved by our auditors. We apply different
methods to determine the fair value – depending on the type of investment:
• Quoted enterprises are generally valued at their stock market price at the valuation
date; in certain instances, the price may be reduced by a discount.
• If a purchase offer has been submitted for an investment, the valuation will be based
on that offer.
• Valuations may also be based on recent comparable transactions in the market.
• If none of the above procedures is applicable, valuations may be determined by the
multiples method based on income data and peer-group comparisons – meaning that
price/earnings ratios of comparable enterprises are used for the valuation.
• Investments consisting of several different companies are subject to a “sum-of-theparts”
valuation – the valuation is derived by adding the individual sums for the
components of an investment.
• Silent participations are valued at acquisition cost (or, if applicable, their lower market
value); the same applies to loans granted by Deutsche Beteiligungs AG to its portfolio
companies, and to new investments in the first year after acquisition.
The fair value of one share of Deutsche Beteiligungs AG is derived by dividing the
valuation reserves by the number of shares and adding that to the equity per share. The
value of our fund management business (see pages 23 and 64) as well as Deutsche
Beteiligung’s long-standing excellent market position are not reflected in the fair value.
Data based on key figures of investee companies is one constituent in determining the
fair value. Another determinant is the situation on capital markets. Approximately onefifth
of the fair value of our investment portfolio is directly linked to the share price trend
for the companies in question. A decline in prices will lead to a decline in the valuation
reserves, even without our holdings necessarily experiencing a deterioration in their earnings
position – frequently a decisive factor in profitably exiting an investment.

Weak dollar curtails valuation reserves in portfolio
In the reporting year, the fair value of our shares declined slightly to 12.48 euros
(November 1, 2002: 12.95 euros). The book value of the equity per share rose from
11.08 euros to 11.34 euros, whereas the unrealized appreciation decreased from 1.86
euros to 1.16 euros per share. Thus, at the end of the past financial year, the shares of
Deutsche Beteiligungs AG were traded approximately at their intrinsic – or fair – value.
At the beginning of the 2002/2003 financial year, the portfolio of Deutsche Beteiligungs
AG contained unrealized appreciation of 26.1 million euros. At October 31, 2003,
it had dropped to 9.8 million euros, a decline of 16.3 million euros. This change was
caused by a number of different, partly netted, effects.
Changes in valuation reserves
T€
30,000
25,000
20,000
15,000
10,000
5,000
0
Valuation reserves
at Nov. 1, 2002
Change due
to realizations
(sales)
Reduction due
to exchange
rate changes
Increase due to
changes in stock
market prices
(netted)
Reduction due
to changes in
earnings/multiples
(netted)
Exchange rate changes had the greatest negative impact on the unrealized appreciation:
the weakness of the US dollar against the euro resulted in a loss of 11.8 million
euros. The value of our US holdings and fund investments as well as several other fund
investments carried in US dollars diminished by this amount solely for reasons of the
dollar’s devaluation, independent of the earnings position of these enterprises.
At the beginning of the 2002/2003 financial year, one dollar equaled 1.01 euros; at
the end of the financial year at October 31, 2003, one dollar was valued at 86 euro
cents, a decline of 15.3 percent. One fourth of our portfolio, valued according to IFRS
rules, is linked to exchange rate gyrations of the US dollar. A further devaluation of the
US currency by 0.05 euros per dollar would, for instance, reduce the fair value of our
portfolio by another 3.5 million euros; a revaluation would have the opposite effect. These
gyrations would result in a deterioration/improvement in the fair value of 25 euro cents
per share.
Some 11.3 million euros of the valuation reserves were realized by the sale of investments.
In exiting these investments, the price last carried on the accounts was the minimum
we achieved in all cases.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Valuation reserves
Positive effects
Negative effects
Other
changes
Valuation reserves
at Oct. 31, 2003
US $/Euro
in €
1.00
0.95
0.90
0.85
0.80
Nov. 02
Jan. 03
Shares
Mar. 03 May 03 July 03 Sept. 03 Nov. 03
11

12
Write-ups on quoted portfolio
companies
The upturn on stock markets also led to an appreciation of our quoted investee businesses.
Higher stock market prices generated a rise of 16.0 million euros in the valuation
reserves. A negative net amount came from changes in valuations determined by the
multiples method (minus 7.5 million euros). Other effects led to an improvement of 4.6
million euros.
The majority of our investee businesses improved or maintained their value during the
reporting year. Deteriorations primarily relate to American enterprises or fund investments
valued in US dollars.
No dividend following loss carryforward
For the 2002/2003 financial year, we achieved results that surpassed those of the
previous year by approximately 20 million euros. Following a consolidated net loss of
15.8 million euros recorded in financial year 2001/2002, the reporting year closed with
consolidated net income of 3.1 million euros. Offsetting the previous year’s loss against
this year’s income results in a consolidated balance sheet loss of 2.4 million euros. At
the Annual Meeting of Shareholders, the Board of Management and Supervisory Board
will therefore recommend not to declare cash dividends for the 2002/2003 financial
year.
Shareholder profile remains unchanged
Changes to the group of shareholders in the reporting year only relate to the free float.
The group of shareholders with holdings in excess of five percent has remained unchanged
throughout the financial year. On November 24, 2003, SchmidtBank announced that it
no longer holds shares of Deutsche Beteiligungs AG. Based on the notices we received
in conformity with Article 21 Wertpapiergesetz (German Securities Trading Act), there are
now only four shareholders owning shares of more than five percent of the subscribed
capital. The free float currently (December 31, 2003) amounts to 49.92 percent.
Shareholder profile
Free float (49.92 %)
Deutsche Bank AG (15 %)
Gerling Life Insurance (15 %)
Vermögensverwaltung
Wilhelm von Finck (15 %)
Kreissparkasse Biberach (5.08 %)
Some three fourths of free float is held by institutional investors and two fifths by
private shareholders. At the beginning of the financial year (November 1, 2002), approximately
5,800 private investors – individuals or enterprises – owned 23 percent of the
subscribed capital.

Pro-active investor relations
Deutsche Beteiligungs AG continues to emphasize communication with its investors,
strengthening the confidence investors place in the Company and its performancefocused
strategy. Open, transparent communication with shareholders, analysts, potential
investors and the media is fundamental to conveying the perspectives inherent in
our stock and sustainably tying investors to Deutsche Beteiligungs AG. This is particularly
important in difficult stock market times; for that reason, we make special efforts to
communicate open, timely and regular information about our business development to
investors, private shareholders, and financial analysts. Conference calls with analysts at
the issuance of every quarterly report are part of our service.
This past financial year, we presented Deutsche Beteiligungs AG and called attention
to our stock at more than 40 events, presentations and meetings with analysts and
investors. We conformed to the recommendations of the German Corporate Governance
Code in terms of "fair disclosure" and made the presented information publicly accessible
in the Investor Relations section of our web site. We attach particular importance to
communicating information to all groups of investors simultaneously. One of the vehicles
we use is our e-mail newsletter, which informs recipients about all essential developments
in our business.
We endeavor to further enhance our investor relations activities. Toward that end,
we use the internet as a fast, cost-effective vehicle. The internet has gained broad
acceptance as a contemporary communication instrument for quoted companies. In line
with that, we have expanded the Investor Relations part of our web site. At the beginning
of this current financial year, we took another step forward: private shareholders
were, for the first time, able to participate at a presentation held for institutional investors
and analysts. Our presentation at the German Mid-Cap Conference on November 26,
2003 was broadcast on the internet. Many shareholders used the opportunity to acoustically
follow the presentation and view the charts.
We have complied with the availability dates for quarterly reports and the year-end
financial statements recommended by the German Corporate Governance Code commencing
with the publication of our quarterly report at April 30, 2003. Since then,
quarterly reports have been publicly accessible within 45 days and the annual financial
statements within 90 days after the end of the respective reporting periods.
Analysts rate shares at upside potential
Analysts’ research serves to give institutional investors an informed opinion on
Deutsche Beteiligungs AG. For many investors, research is a prerequisite for considering
a company’s stock in the first place. We have therefore endeavored to improve the coverage
of our shares. Five analysts are currently monitoring our stock, among them, an
analyst from a British investment bank in London. We feel this is particularly significant,
in view of the relatively large number of private equity firms quoted on the London
Stock Exchange.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Shares
News via e-mail at
www.deutsche-beteiligung.de
It only takes two clicks on the
home page at www.deutschebeteiligung.de
and an e-mail
address to subscribe to the
electronic newsletter of
Deutsche Beteiligungs AG.
Comprehensive information for
private investors
Improved analysts’ coverage
13

14
Analysts’ opinion of Deutsche Beteiligungs AG
“Today we re-initiate coverage on DBAG, … with an outperformer rating … The main
investment themes are: … DBAG’s chances of exiting its investments are increasing. …
With the recent closing of its Fund IV DBAG diversifies its revenue base in less volatile, high
quality commission driven fees.” … DBAG as an indirect M-Dax/S-Dax play will benefit two
fold: via rising prices and increasing exit possibilities.”
Metehan Sen, Oppenheim Research GmbH
November 2003
“As we believe the company’s valuation approach is conservative, the company appears
undervalued. We believe a higher premium to NAV is justified, based both on a peer group
comparison and RoE analysis. We initiate coverage with a BUY recommendation.”
Ralph Jainz, Cazenove
October 2003
“Deutsche Beteiligungs AG – Private equity at its best … As a well-established player, DBAG
should benefit from a flight to quality by investors. However, the undervaluation of the
stock also drives our positive recommendation, as we believe the current share price does
not fully reflect the value of DBAG’s investment portfolio. … We initiate coverage on
DBAG with a BUY recommendation.”
Rabea Bastges, HSBC Trinkaus & Burkhardt
October 2003
“The key to DBAG’s success is access to the deal flow. As one of Germany’s largest private
equity companies, DBAG is invited to participate in an above-average number of deals. …
Our MidCaps/Small Caps team is starting its research coverage on Deutsche Beteiligungs
AG stock with an Outperform rating.”
Peter-Thilo Hasler, HVB Corporates & Markets
October 2003
“We assess positively the ability to generate interesting deals in a difficult market environment
for equity investments. Additionally, through its co-investment fund IV, DBAG has the
assets needed to make further investments. … Rising income from management fees will
markedly relieve costs … Our vote is Buy.”
Jens Jung, Independent Research
September 2003*
*Translated from the German

Prospects for our shares
Capital markets have exhibited progress in past months. The price trend for the stock
of Deutsche Beteiligungs AG has also been encouraging. There are good arguments that
speak for a further improvement in the performance of our shares. These arguments
have virtually remained unchanged:
• We continue to adhere to our return target of generating a superior return on equity
that outperforms capital markets’ cost-of-equity expectations.
• Our portfolio is sound, mature, and it contains earnings potential.
• The shares of Deutsche Beteiligungs AG are indexed in the S-Dax and listed in the
Prime Standard. They thus meet material demands of international investors, who,
following the restraint exhibited the past two years, are again expected to invest in
German securities.
• Demand for private equity will rise. As one of the leading and most experienced private
equity firms in the German market, Deutsche Beteiligungs AG is well placed to profit
from that growth.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Shares
Information service at
www.deutsche-beteiligung.de
We use the internet to communicate
comprehensively and
simultaneously with all of our
shareholders. On the Investor
Relations pages of our on-line
service, viewers can access our
presentations for investors and
analysts. All ad-hoc notices
and press releases issued by
Deutsche Beteiligungs AG are
also found there. Analysts’ opinions
and, in part, their research
reports are also accessible at our
site. News on the Annual Meeting,
current stock prices and the
latest financial indicators round
out our on-line information
service
15

16
The Code, in its valid form,
can be accessed and downloaded
at www.corporategovernance-code.de.
Please see page 88 for the
declaration submitted by the
Board of Management and
Supervisory Board of Deutsche
Beteiligungs AG on the
Company’s compliance with
the German Corporate
Governance Code.
CORPORATE GOVERNANCE –
DEFINED LINES OF ACCOUNTABILITY
AND SUPERVISION
Transparent, fiduciary Corporate Governance is geared to
ensure accountability and value-driven management and
control processes in an organization. It serves to anchor and
strengthen the confidence of shareholders, business partners,
employees, and the public in a company. Deutsche Beteiligungs
AG vindicates and fosters that confidence through
an open, timely, and regular flow of information.
Corporate Governance Code complements corporate practice
Corporate Governance has gained in importance over the last few years in assessing
and valuing quoted enterprises. Standards of conduct developed by a Commission
installed by the German Government in 2002 have meanwhile been widely accepted
and compiled in a Code. To the Board of Management and Supervisory Board, the
essence of the Code has always represented a minimum standard, exceeded by the
Company’s articles of association, rules of procedure, and, in particular, everyday practice.
On December 18, 2002, we submitted a “Declaration of Conformity” pursuant to
Article 161 of the German Stock Corporation Act. We declared that we will principally
comply with the greater part of the recommendations and virtually all of the suggestions
laid down in the Code issued November 7, 2002. In a number of instances, shareholders’
resolutions or changes to the rules of procedures required to meet certain recommendations
have meanwhile been passed.
We will continue to basically follow the recommendations and suggestions of the
Code. At the beginning of this current financial year, we submitted a declaration in conformity
with regulatory requirements; it is based on the Code as amended on May 21,
2003. The Board of Management and Supervisory Board declared therein that Deutsche
Beteiligungs AG has principally complied with the recommendations of the Government
Commission on the German Corporate Governance Code.
Exceptions due to the nature of private equity
The Code sets standards for all German stock corporations. Naturally, it cannot account
for the particularities of certain sectors of industry or the needs of smaller enterprises.
The reason why Deutsche Beteiligungs AG does not follow the Code in all points is
rooted in specific circumstances governing the private equity business.

For instance, the special accounting principles of the International Financial Reporting
Standards (IFRS) that apply to us as a so-called investment company had not yet been
adapted by November 2003, at the beginning of the new financial year. For the time
being, we will therefore continue to base our accounting on the principles of the German
Commercial Code. In anticipation of the transition to the IFRS, we do, however, report
portfolio valuations semi-annually determined in conformity with valid IFRS fair-value
principles, thereby giving material insights as would be disclosed by IFRS-formatted
accounting.
The Code also requires publishing a list of third-party companies, stating, among other
things, the amount of equity and operating results for the last financial year. We can
only conditionally follow this recommendation. Frequently, confidentiality is a contractual
stipulation with our business partners. Without this confidentiality, many private equity
transactions would not be possible.
We are closely following the Corporate Governance debate. We will adapt our own
practice – for instance, our position on recommendations made in the Code with which
we currently do not comply – should we feel that the circumstances call for this.
Strict insider guidelines
A key factor for success is the performance and motivation of our staff. In 2002,
Deutsche Beteiligungs AG installed a stock option program which is limited to the
members of the Board of Management and a selected group of key employees. The
Company also offers an employee stock ownership that allows the staff to purchase
stock once a year and share in the Company’s long-term performance. Outside these
programs, members of the staff are not permitted to purchase shares of Deutsche
Beteiligungs AG.
We cannot ensure that employees will not possibly gain access to information that
may influence the share price movement – such as an upcoming change in the portfolio.
The trading prohibition is designed to improve transparency and avoid misunderstandings.
Currently-owned shares and those acquired in the future through employees’ stock
ownership programs may only be sold during specified exercise periods that are linked
to the publication of corporate reports. Exercise periods are a certain number of days of
trading following the Annual Meeting and the publication of the annual financial statements
and the quarterly reports.
Employees are also prohibited from dealing in stocks of companies in the portfolio of
Deutsche Beteiligungs AG or of companies undergoing the due diligence process.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Governance Report
Accounting remains based on
German Commercial Code
The exact exercise periods are
disclosed on our web site at
www.deutsche-beteiligung.de
17

A telephone call, an e-mail could mean the beginning of a new
investment. In almost 40 years on the German private equity
market, we have built a unique network: specialized consultants,
banks or industrial experts are frequently the source of hot
leads for a potential investment. Attractive industry? Profitable?
Strong in the market? Only a few can take these hurdles. But, if
a company does match up to our investment qualifications, the
due diligence comes next. The starting signal for our decisionmaking
process.

DEUTSCHE BETEILIGUNGS AG –
MARKET PERFORMANCE ATTESTS TO
THE STRATEGY
A clear focus pays off: three management buyouts contracted
– that ranks Deutsche Beteiligungs AG as one of the most
active private equity firms in the German buyout market in
2003. Profitable realizations have again shown that the
investment team of Deutsche Beteiligungs AG is not only
able to create value against the general market trend, but
to realize that value. The new DBAG Fund IV co-investment
fund broadens the scope for future investments and is a
key prerequisite for securing and expanding the Company’s
good market position.
With a track record of nearly 40 years, Deutsche Beteiligungs AG is a particularly
experienced private equity company and a first address in the German market. The
Company can lay claim to having spurred and shaped private equity culture in Germany.
Management buyouts (MBOs) – the focus of our investment strategy – have only been
common in Germany to any significant extent since the mid 90s. We have pro-actively
contributed toward this positive trend, which has by no means reached its climax yet.
Private equity is continuing to gain in importance in Germany: the capital stemming
from Germany for private equity investments has been on a uptrend from year to year.
This is not surprising when comparing the situation in Germany with that of other European
countries. There is still considerable development potential in the German market
when viewed by an international standard. It seems very likely that this potential will
drive the significance of private equity in our economy in the coming years.
Private equity market in Germany
20,000
17,500
15,000
12,500
10,000
7,500
5,000
2,500
0
Particularly strong performance is currently being registered by the market for midmarket
private equity investments structured as management buyouts – our core line of
business. This acquisition form is developing independently of the general economic trend
and has been implemented more frequently than ever in the testing economic climate
of 2003.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Market and Strategy
Portfolio volume in millions of €
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
(Jan.–Sept.)
Private equity gaining in
importance
Source: Bundesverband
Deutscher Kapitalbeteiligungsgesellschaften/German
Venture
Capital Association (BVK, Berlin)
19

Source: Centre for Management
Buy-Out Research (CMBOR,
Nottingham); for 2002 and 2003
own assessment or estimate
based on published data
20
Attractive deal flow
The reasons for this trend remain unchanged. The most frequent source of MBOs are
spin-offs of subsidiaries from parent companies. Large corporations are still streamlining
their portfolios and disinvesting peripheral activities, concentrating their resources on
areas of greatest competence and that achieve the greatest synergy and generate the
highest returns. Driven by capital market expectations toward that end, this process has
gained momentum over the past five years.
But other reasons are fueling the process as well: banks have changed their strategy
in financing small and mid-sized enterprises. Financial institutes are more restrictive in
their lending policy. Furthermore, borrowings will tend to become more expensive for
many small and mid-sized enterprises, because banks will be required to back loans by
more equity, inevitably leading to higher interest rates (“Basle II”). Added to that is the
fact that the equity base of German companies is, as a rule, much thinner than in other
industrial nations. The trend toward higher borrowing costs and limited availability of
loans creates opportunities for private equity.
In addition to the number of enterprises up for sale, other key factors that fuel transaction
activity are selling prices and anticipated value appreciation. Both of these factors
have recently improved. Vendors have been attaching greater weight in their asking prices
to the less favorable economic setting. Simultaneously, with indications of an emerging
upturn in sight, there are good opportunities to build value. “This cycle is bottoming
out – a good time for investments,” is the opinion in the business as well as among
financial analysts focused on the private equity market.
Transactions
Mio. €
2,700
2,400
2,100
1,800
1,500
1,200
900
600
300
0
Sum of all transactions valued at € 50 to 250 million (in millions of €)
Number of transactions
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Ranking top-of-the-market with three transactions in 2003
The deal flow currently on the German market has proved to be very attractive for
Deutsche Beteiligungs AG. Persistent restructuring pressure on large corporations has
generated a stream of interesting investment opportunities. Deutsche Beteiligungs AG
determinedly utilized these opportunities. Three transactions were contracted and partially
completed in financial year 2002/2003. Three transactions in the mid-market segment
put Deutsche Beteiligungs AG at the top of the German private equity market in
2003.
18
16
14
12
10
8
6
4
2
0
Number of transactions

This performance is founded on six premises.
We concentrate on one theme: management buyouts
As a financial investor focused on majority acquisitions in partnership with management,
we pursue one primary goal: to appreciably build the value of our investments
within a time horizon of approximately five years. Following a management buyout,
former group subsidiaries are transformed from a perpherial activity to a core business.
Decentralizing the accountability for performance and introducing new organizational
structures mobilize new drive within a company. Our capital creates opportunities for
investee enterprises to quickly develop their businesses. For example, it puts management
in a position to realize long overdue capital expenditure programs, bring products to
market, or enter new markets. Furthermore, it enables the managements of spin-offs to
make important decisions on a timely basis without having to compete with other divisions
for the funds, as is often the case in large conglomerates. Additionally, a financial
minority investment on the part of management ensures that its objectives coincide
with ours.
We will persistently pursue the strategy change toward management buyouts which
we initiated in 1996. This means that our second business field of expansion financing,
currently accounting for 40 percent of the total portfolio, will decline in the coming
years.
We adhere to a disciplined investment process
Through our investment strategy, we have developed an approach that has made us
a leading address in the German private equity market. As a long-standing Old Economy
investor, we are exclusively interested in mid-sized enterprises that generate annual
sales of 50 million to 750 million euros and operate in manufacturing or processing
industry or in selected service sectors.
Potential target companies must have seasoned managements who have done excellent
work in those companies in the past and are willing to financially invest in the buyout.
Moreover, target companies must boast a prominent market position and verifiable
profitability with significant potential for earnings growth. Prudent due diligence scrutinizing
the risks and opportunities of a transaction achieve quick clarity on this. Start-up
businesses and enterprises requiring a high degree of restructuring to survive in the
market will not be considered.
The debt-free purchase price of a target company should range from 50 to 250 million
euros. Of this, we provide equity of up to 60 million euros jointly with our managed
co-investment fund. To shoulder larger equity requirements, we draw upon the readiness
of our fund investors and our contacts to other financial investors pursuing similar coinvestment
strategies. This ensures that Deutsche Beteiligungs AG is able to act as a
majority investor – even though it may not always hold the share majority alone. The
final point in an investment process is the investment’s ultimate sale. Exit opportunities
are a a key part of our considerations from the very onset. We expect an investment to
generate returns of 25 percent annually on our invested capital.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Market and Strategy
Premise 1
Premise 2
21

22
Premise 3
Premise 4
Please read more about the
staff of Deutsche Beteiligungs
AG in Management’s Report
on page 68
Premise 5
We ensure that the portfolio is balanced
In selecting enterprises in which to invest, we keep sight of adequate balance and
diversification in the portfolio. We have gained special expertise in a number of industrial
sectors:
Industrial sector Selected examples from the portfolio of
Deutsche Beteiligungs AG since 1996
Automotive supplies AKsys-Gruppe
Preh GmbH
Machine and DS Technologie GmbH
plant construction Lignum Technologie AG
Industrial services Babcock Borsig Service GmbH
and logistics Rheinhold & Mahla AG*
Printing, media, schlott gruppe AG
packaging Schoeller & Hoesch-Gruppe*
Measuring and Grohmann Engineering GmbH
automation technology
* meanwhile sold
Hawe KG*
To quickly exploit attractive business opportunities when they arise – both at international
level and with a certain amount of investing leeway – Deutsche Beteiligungs AG
has two highly effective options at its disposal. To make use of international transaction
opportunities, we operate alongside partner companies with whom we have maintained
working relationships for many years. They include Harvest Partners in the United States
(since 1985), Unternehmens Invest AG (UIAG) in Austria (since 1992), and Quartus Gestion
in France (since 1998). We invest either directly in selected holdings of these partners or
indirectly through buyout funds raised by these partners. To that end, we additionally
achieve a geographical balance in the portfolio.
We invest personally
Apart from their personal commitment and their close collaboration with the managements
of investee businesses during the holding period, the members of the Board of
Management and eleven other members of our investment team invest private capital in
every transaction. Installed in 2001 and common in our line of business, a carried-interest
scheme calls for co-investments of this nature in order to reap the rewards at an
investment’s ultimate profitable realization. This is designed to align our management
team’s interests with those of our shareholders.
We build on experience
Deutsche Beteiligungs AG has been operating in the private equity market for nearly
40 years – a wealth of experience, which distinguishes the Company as a leading German
address and is mirrored in its management team. No investment manager has served at
Deutsche Beteiligungs AG for less than three years. The members of the Board of Management
look back on an average of more than eight years with the Company. This
personal know-how rooted in a highly skilled investment team guarantees that investment
decisions will be geared to the benefit of our shareholders and the Company.

We build on an established network of contacts
In completing more than 300 transactions over the years in Germany’s mid-market
segment, a unique network of contacts has evolved. Our good relationships to the top
managements of enterprises, M&A consultants, and investment banks warrant access to
lucrative investment offers and potential vendors – to a large degree, outside costly auction
processes. Of the 24 transactions that we completed from 1996 to 2003 in Germany
and Austria, 19 – or almost four fifths – stem from sources that were open to us
preferentially. This network of contacts is one of the pillars of our performance.
Co-investment funds enable larger transactions
Management buyouts in the mid-market segment – or transactions valued from 50
million to 250 million euros – are attractive investments: they constitute more favorable
expense/income ratios than smaller transactions. Investing in larger, established enterprises
generally also reduces the risk exposure.
To operate in this attractive market segment, Deutsche Beteiligungs AG has entered
investments jointly with co-investment funds since its flotation – a strategy that many
comparable Anglo-Saxon private equity firms successfully follow. This gives us access to
the greater part of the private equity market: more than 90 percent of the capital channeled
to private equity investments worldwide is traditionally not invested in quoted
corporations, but rather in closed-end funds.
After Fund III had been completely invested, we launched a new fund in 2002. This
fund’s final closing was held in September 2003. A total of 20 investors – banks, insurance
companies, funds-of-funds investors, and family asset managements in Germany, western
Europe and the United States – committed the sum of 228 million euros. That raises
the total assets under management to more than 651 million euros.
80 percent of the new capital was committed by investors outside the group of shareholders
of Deutsche Beteiligungs AG. Three fourths of the capital came from Germany.
Considering the fact that the total investment sum channeled to buyouts in Germany in
2002 and the first half of 2003 was barely 500 million euros and that Deutsche Beteiligungs
AG addressed external investors for the first time, this fundraising performance
merits recognition for the investment team of Deutsche Beteiligungs AG.
Our shareholders also benefit from the success of our fund-raising activities: firstly,
our co-investment funds allows Deutsche Beteiligungs AG to make investments that it
would not be able to finance alone. Secondly, co-investment funds generate income
from fund management activity, from annual management fees and transaction structuring
fees. The fund business is thus a significant contributor towards covering current
costs at Deutsche Beteiligungs AG. This past financial year, the net amount from other
operating income from these sources less operating expenses and personnel costs
improved by seven million euros. For the mid-term, we plan to cover all current costs of
Deutsche Beteiligungs AG through income from management fees.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Market and Strategy
Premise 6
For more information on
investment management
expenses see Management’s
Report page 64
23

24
High-quality surface materials
emerge at the end of the
production line at the
Schöppenstedt site near the
City of Hanover and other
facilities, manufactured from
resin-impregnated papers.
The resin mixture is part of
Casco's corporate expertise.
CASCO SURFACES –
POST-BUYOUT PERSPECTIVES
Our business is based on an intensive selection process: we
examined more than 400 investment opportunities this past
financial year again. Only few enterprises meet our standards
for a private equity investment: of these 400 businesses,
only 50 are suited for a private equity investment; no more
than 15 to 20 of them will be considered for closer examination.
In 2002/2003, we decided to invest in three of them.
Through these investments, we plan to enhance the value
of our portfolio and generate commensurate earnings for
our shareholders.
A classical candidate – from the onset
Wherever you turn – in Germany, other European countries or in North America –
you are likely to come across Casco Surfaces: the desktop in the office that looks like
solid wood is probably coated with an impregnated foil – a Casco product, as is the
surface material on the laminate flooring in the living room. Inside an upscale limousine,
the paneling – precious wood to the eye – is a melamine-coated veneer. The business
of high-grade surfaces for the furniture and flooring industries is on the rise, and Casco
Surfaces is a major supplier.
Casco Surfaces was a classical candidate for our portfolio from the very onset. A
product division of Netherlands-based chemical and pharmaceutical giant Akzo Nobel
N.V. until June 2003, this enterprise had the right business, the right financial figures,
and the right prospects. And above all: a determined management team: “We plan to
increase sales strongly in the next three to five years, more strongly than would have
been possible as part of our former group,” said John Ahlström, CEO of Casco Surfaces.
Following the spin-off completed on June 30, 2003, Ahlström and five other managers
have invested in Casco Surfaces alongside Deutsche Beteiligungs AG and its co-investment
fund DBAG Fund IV. And alongside our American private equity partner: North
America is Casco Surface’s major market – entering this investment with Harvest Partners
was instrumental in the negotiations with the seller and management on this deal.
Casco Surfaces has targeted growth – in North America through add-on acquisitions.
With projects like that in mind, it is good to have an experienced, competent partner
at one’s side, one who is well-connected in the market: “We are very pleased to have
structured this buyout with exactly these two financial investors, since our business is
strong both in America and in Europe. Yet these two markets differ widely, and partnering
with a local financial investor in each market was certainly the expedient thing to
do,” Ahlström was happy to say.

Platform for growth – Opportunities to build value
Casco Surfaces is well poised: among the impregnating companies not attached to a
corporate group, Casco ranks Number One in Europe. In North America, no other company
sells more surfaces for laminate floorings than Casco.
Casco intends to amplify this first-rate market position – management’s declared goal.
The team has linked a distinct entrepreneurial vision to the buyout: “We want to grow
dynamically and profitably on a sustained basis in order to underpin and augment our
world leadership position,” said Ahlström in commenting on the company’s strategy.
“Our next milestones will see market entries in southeast Asia and Brazil.” In late 2002,
Casco Surfaces commissioned a manufacturing site in Brazil. Work is ongoing for the
company’s entry into China’s lucrative market.
“Given the current pace of innovation, we should be well placed to accelerate growth
in established markets,” John Ahlström went on to say. A number of new product launches
are slated in Casco Surfaces’ home markets – meaning North America and Europe.
“In mature markets, it is not enough to sell good products at fair prices.” Casco’s CEO
expounds upon a further aspect of the company’s strategic development for the next
three years: “Our traditional product range needs upgrading by new, exciting designs.”
Casco Surfaces soon wants to be perceived as a “competent design partner.” Ahlström
intends to fuel this development by building an in-house design department. And finally:
“We are rigorously scrutinizing processes in the organization to optimize our pattern of
costs. We will, for example, be combining the manufacture of individual products at a
single production site.” That will significantly improve Casco Surfaces’ profitability. And
that will be a determinant in this investment’s achievable selling price in four to seven
years.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investment profile
Facts and figures
With sales of 265 million euros
(2002) and an annual production
capacity of more than 600
million square meters, Casco
Surfaces GmbH is a worldwide
leader in surface materials.
More than 900 people work for
Casco, approximately 150 of
whom are based in Germany.
The Casco Surfaces group of
companies consists of its
German operations in Düsseldorf
(headquarters), Essen (distribution,
research and development),
and Schöppenstedt in Lower
Saxony (production), as well as
eight international manufacturing
facilities in France, Sweden,
Spain (2), the United States,
Canada, Brazil, and Malaysia,
in addition to four smaller
distribution companies.
25

After clearing the first hurdle, a structured due diligence process
begins. The objective is to assess management’s competency,
market conditions, and the company’s growth and earnings
potential. We draw on experts and consultants to support us in
the process. And we profit from the know-how gained in more
than 300 transactions in Germany’s mid-sized industry. Simultaneously,
we enter negotiations with banks – no deal would be
transacted without reliable financing partners. Having completed
the basic research, the next step is to work out an initial enterprise
evaluation and the fundamental structure of an acquisition
concept.

OUR PORTFOLIO – GOOD CROSS
SECTION OF THE MID-MARKET
The portfolio of Deutsche Beteiligungs AG consists of 43
investments. All in all, a group of companies generating sales
of more than eight billion euros annually and employing
nearly 40,000 people. However, the strength of our portfolio
does not lie in the sum total, but in the quality of each and
every investment. Our holdings – established enterprises
well poised in traditionally strong industries – have, for the
most part, held up well this past financial year.
Investment discipline a pillar in crisis-ridden times
Our portfolio investments are exposed to business cycles in two of the world’s large
economic regions: Germany and the countries of the European Union, and the United
States. In 2002/2003, both economic regions registered only minor growth. Germany’s
economy last recorded real growth in the third quarter of 2002. Since then, earnings have
been on the decline in nearly all industries and capacity utilization has dropped. It was
not until the fourth quarter of 2003 – the beginning of the current 2003/2004 financial
year – that the recessionary period in Germany seemed to have come to an end. In the
US, signs of recovery emerged a few months earlier. In the reporting year, the operations
of most of our American portfolio companies met with challenging conditions.
Strict investment discipline pays off especially in difficult business environments. Enterprises
that have strong market positions are frequently less vulnerable in critical cyclical
phases than less profiled competitors. They will target opportunities to consolidate their
market positions and optimize cost structures. That is one key reason why our investments
performed comparatively well in 2002/2003: a large majority anticipates that earnings
will be stable or higher than those of the previous year; many have succeeded in reducing
debt. If the upturn that emerged at year-end 2003 gains further momentum, our
investments should be well placed to achieve superior earnings growth – thereby increasing
their enterprise value. This will be mirrored in the fair value – although with some delay:
an appreciation in value requires earnings stability on a sustained basis. By contrast, an
expected drop in earnings is recognized immediately in our portfolio valuation.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Portfolio
Fair value follows cyclical trends
with a time lag
27

28
For information on the Group
structure, see Management’s
Report, page 61
Valuation adjustments to US investments
We anticipate that sales and earnings will improve in the foreseeable future for the
three American investments, whose valuation required modification in the balance sheet
this past year. Harvest Partners, our private equity partner in the US who leads these
investments, has initiated appropriate action to counter the weak performance exhibited
by these three investee businesses. The programs installed are expected to show positive
effects on earnings as early as the current financial year. Deutsche Beteiligungs AG has
also indirectly invested in these three enterprises through the Harvest Partners III fund;
accordingly, the value of this fund has also been corrected. At 13.1 million euros, these
four investments account for the largest part of the write-downs on investments which
we performed this past financial year.
We feel confident that these write-downs are of a temporary nature and that, in the
mid-term, these investments and the fund will achieve an appreciation in value – as was
the case for three other investments, whose valuation had required modifying in the
past.
Opportunities exploited
Difficult business cycles are challenging for all enterprises – those that perform well
in critical times will have fulfilled key criteria for an investment. They will have proven
their capability to generate profits; their market position will evidently be strong enough
to defy adversities. An investor will be acquiring a company with robust structures, one
that is likely to exhibit good progress in an approaching upswing.
We made targeted use of these market opportunities this past financial year. In
2002/2003, we contracted three management buyouts; one transaction was completed
prior to the balance sheet date, the other two in November 2003. Six investments were
sold from the portfolio.
At October 31, 2003, the portfolio totaled 299.7 million euros, at acquisition cost,
invested in 43 enterprises. The following table presents the investments of the Deutsche
Beteiligungs AG Group. The Group primarily consists of Deutsche Beteiligungs AG and
Deutsche Beteiligungsgesellschaft mbH.

Volume
November 1, 2002 € 313.1 million
Investments € 30.8 million
Disposals/Repayments € 44.2 million
October 31, 2003 € 299.7 million
We invested a total of 30.8 million euros in 2002/2003. At 28.6 million euros, the
lion’s share (94.4 percent) of this investment sum was spent to finance management
buyouts – either directly (18.9 million euros) or indirectly through international buyout
funds (9.7 million euros). The largest single amount – 12.4 million euros – is attributable
to our new investment in Casco Surfaces GmbH.
The co-investment funds under management enter investments in the same investee
businesses as contained in the portfolio of Deutsche Beteiligungs AG. The investing
period of Fund I and Fund III has been concluded; these funds are currently in the disinvestment
phase, meaning that each disinvestment will result in a further decline in the
fund volume. DBAG Fund IV currently co-invests alongside Deutsche Beteiligungs AG at
a fixed ratio. At October 31, 2003, the total portfolio of Deutsche Beteiligungs AG and
third-party funds under management amounted to 495 million euros (October 31, 2002:
516 million euros), invested in 51 companies and funds. At the close of the year under
review, it was composed of the following:
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Portfolio
Number
November 1, 2002 49
Investments 1
Disposals/Repayments 7
October 31, 2003 43
Volume
Deutsche-Beteiligungs AG Group € 299.7 million
DBG Fund I € 42.8 million
DBG Fund III € 110.8 million
DBG Osteuropa-Holding GmbH € 12.1 million
DBAG Fund IV € 28.8 million
Total managed investments € 495.2 million
The firm names used here may not always correspond to the legal name.
Portfolio volume
Number of investments
Total portfolio managed by
Deutsche Beteiligungs AG
at October 31, 2003
29

30
New investments entered by
Deutsche Beteiligungs AG
(including material follow-on
funding in 2002/2003)
Sales from the portfolio of
Deutsche Beteiligungs AG in
2002/2003
Largest investments
Book value Share of
in T€ portfolio DBAG
Bauer AG 27,594 10.8 %
Lignum Technologie AG 22,583 8.8 %
schlott gruppe AG 17,392 6.8 %
Harvest Partners III 16,201 6.3 %
Hörmann KG 13,749 5.4 %
Harvest Partners IV 12,589 4.9 %
Casco Surfaces GmbH 12,376 4.8 %
AKsys GmbH 12,085 4.7 %
Lund International Holdings Inc. 11,176 4.4 %
Hucke AG 8,360 3.3 %
Total, 10 largest investments 154,105 60.3 %
Total, 10 next largest investments 77,227 30.2 %
Total, 23 largest investments 231,332 90.5 %
Total, remaining investments 24,395 9.5 %
Investment sum in book value 255,727 100 %
The firm names used here may not always correspond to the legal name.
Business field Investment Page
in T€
Casco Surfaces GmbH MBO 12,376 34
AKsys GmbH MBO 2,116 38
Harvest Partners IV Fund investments 4,619 54
Other fund investments Fund investments 3,214 53
Others 3,377
Business field Page
Andritz AG MBO 36
Edscha AG MBO 36
Global Power Equipment Group Inc. MBO 37
Computec Media AG Expansion financing 44
Others 44

Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Portfolio
Principal holdings of Deutsche Beteiligungs AG and Deutsche Beteiligungsgesellschaft mbH
at October 31, 2003
Name* Domicile Industry Business Book value Share of port- Page
field in T€ folio DBAG
AKsys GmbH Worms Automotive supplies MBO 12,085 4.7 % 38
Bauer AG Schrobenhausen Construction Expansion 27,594 10.8 % 45
Casco Surfaces GmbH Düsseldorf Chemicals MBO 12,376 4.8 % 34
DS Technologie GmbH Mönchengladbach Machine and
plant construction MBO 7,163 2.8 % 40
Edgen Corp. Baton Rouge (USA) Trade MBO 6,495 2.5 % 40
Harvest Partners III New York (USA) Fund 16,201 6.3 % 53
Harvest Partners IV New York (USA) Fund 12,589 4.9 % 54
HKL Baumaschinen GmbH Hamburg Construction Expansion 8,241 3.2 % 48
Hochtemperatur Mainz-Kastel Machine and
Engineering GmbH plant construction MBO 6,218 2.4 % 41
Home Care Supply Inc. Beaumont (USA) Trade MBO 7,410 2.9 % 40
Hörmann KG Kirchseon Industrial services
and logistics Expansion 13,749 5.4 % 46
HSBC Private Equity Fund (II) Hong Kong
(China) Fund 4,974 1.9 % 55
Hucke AG (Bowa GmbH) Lübbecke Consumer goods Expansion 8,360 3.3 % 47
IntelliRisk Corp. Columbus (USA) Industrial services
and logistics MBO 3,917 1.5 % 41
JCK KG Quakenbrück Consumer goods Expansion 3,601 1.4 % 49
Lignum Technologie AG Schopfloch Machine and
plant construction Expansion 22,583 8.8 % 45
Lund Holdings Inc. Anoka (USA) Consumer goods MBO 11,176 4.4 % 39
Quartus Capital Partners I Paris (F) Fund 6,452 2.5 % 54
Sauer KG Bessenbach Automotive supplies Expansion 5,138 2.0 % 48
schlott gruppe AG Freudenstadt Print, media,
packaging MBO 17,392 6.8 % 37
Unternehmens Invest AG Vienna (A) Fund 7,409 2.9 % 55
Victorvox AG Krefeld Trade Expansion 4,663 1.8 % 44
Vogler-Gruppe Bad Homburg Trade Expansion 5,546 2.2 % 48
*The firm names used here may not always correspond to the legal name. Due to rounding differences, the addition of the individual constituents of a total in the table may lead to deviations
from the actual value.
These 23 investments represent 90.5 percent of the book value of the portfolio of Deutsche Beteiligungs AG. The
remaining 9.5 percent constitute investments in 20 enterprises and funds, each of which is of subordinate importance for
the total portfolio.
31

Facts and figures alone are not enough to convince us. We are
just one of the buyers. Management is always with us in the same
boat. We believe that close, genuine working relationships with
management are a key to success. If the chemistry is right, we
take one next step together: verifying the results of our initial
review, working out a financing concept, refining the enterprise’s
future corporate strategy. We want management to be
convinced of us and win their support. Success is always a joint
effort.

MANAGEMENT BUYOUTS –
PARTNERSHIPS FOR PERFORMANCE
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Management Buyouts
Majority holdings are the focus of our investment strategy.
Management buyouts – the type of majority investments
we prefer – constitute our key business field. We expect this
business to generate the highest earnings in the future.
“Majority” does not necessarily mean that Deutsche Beteiligungs
AG must own the majority alone: our co-investment
funds invest alongside our activities and we frequently combine
efforts with other financial investors pursuing similar
goals. One example is Casco Surfaces, the first management
buyout we entered in 2002/2003. Two other transactions in
this business field which were contracted in 2002/2003 have
meanwhile been completed.
Our paramount objective is to build the value of our investments. The position of a
majority shareholder allows us to best reach that goal. A majority shareholder can decisively
influence an enterprise’s development. We seek to have earnings growth outpace
sales growth in our investee businesses, and we aim to enhance our investee businesses’
strategic positioning. These entrepreneurial activities vindicate our expected returns.
The successful realizations completed this past year are proof that these objectives are
attainable.
At the end of the 2003/2003 financial year, the business field of management buyouts
totaled 116.1 million euros at acquisition cost, or approximately 38.7 percent of
the portfolio. Compared with the previous year, this represents a slight decline – resulting
from the sale of Edscha AG and Global Power Equipment Group Inc. as well as the
partial realization of our holding in Andritz – at the balance sheet date. At the date of
writing this report (December 31, 2003), all three management buyouts contracted in
2002/2003 have meanwhile been completed, and, currently, the largest part of the portfolio,
or more than 40 percent, is attributable to management buyouts. The average
investment sum per MBO rose from 6.94 percent to 7.26 percent (October 31, 2003).
FY 2002/2003
FY 2001/2002
FY 2000/2001
38.7 %
36.4 %
40.1%
Share of MOBs in
total portfolio
33

34
Portfolio volume
Number of investments
www.cascosurf.com
Investments – Three new management buyouts in the portfolio
In the 2002/2003 financial year, we contracted three new management buyouts. We
acquired Casco Surfaces GmbH jointly with our American partner Harvest Partners. We
purchased Babcock Borsig Service GmbH from the insolvent Babcock Borsig group. Preh
GmbH is another classical spin-off: Rheinmetall AG sold Preh to Deutsche Beteiligung,
consistent with their strategy of focusing on only two core activities in the future.
Our new co-investment fund DBAG Fund IV invested alongside Deutsche Beteiligung
in all three transactions. Management participation in each of our new investee businesses
amounts to some ten to 15 percent of the shares. Additionally, the buyout of
Preh GmbH saw former family owner Rosemarie Preh reinvesting in the company.
Casco Surfaces GmbH
Düsseldorf
Volume
November 1, 2002 € 125.5 million
Investments € 18.9 million
Disposals/Repayments € 28.3 million
October 31, 2003 € 116.1 million
Number
November 1, 2002 18
Investments 1
Disposals/Repayments 3
October 31, 2003 16
FY 2003* FY 2002 Change
Sales € 262.0 million € 265.0 million –1.1%
*provisional
Investment Equity share
T€ 12,376 19.0%
Parallel fund another 27.1%
First invested in July 2003

Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Management Buyouts
Casco Surfaces is a chemical company that produces surfaces largely used in the
manufacture of furniture and floorings. We purchased this enterprise from Netherlandsbased
Akzo Nobel N.V. In negotiating this acquisition, two aspects were ultimately decisive:
we were quickly able to present a sound bank financing concept for the transaction
– an important aspect for the seller, in that it increased the probability of closing the
transaction. Our intention to acquire the enterprise jointly with Harvest Partners constituted
an attractive proposition to Casco’s management. Through Harvest Partners’
involvement, strong local expertise will be available to pro-actively support Casco in the
United States, Casco’s key market. Please read a detailed report on Casco Surfaces on
pages 24 and 25.
The management buyouts of Preh GmbH and Babcock Borsig Service GmbH were
initiated, negotiated and contracted during the reporting year. The completion of these
transactions, however, was effected subsequent to the balance sheet date. Consequently,
both investments are not contained in the portfolio data at October 31, 2003.
Preh GmbH
Bad Neustadt an der Saale
A comfortable interior climate when driving and directions for reaching destinations
by the fastest or shortest route have become standard in many automobile models today.
Climate and navigation units are operated by controls made by our new investee company.
As a development partner to leading automobile manufacturers and systems
providers, Preh’s products are found in numerous European car models. Key customers
include BMW, DaimlerChrysler, GM/Opel and the Volkswagen group. Preh is also involved
when shoppers are checked out quickly at the supermarket’s checkout counter: Preh is a
worldwide leading provider of high-quality keyboards and keypads for data entry systems.
The company employs a staff of approximately 1,700 and generates annual sales of more
than 220 million euros (2002).
Preh owes it unique market position in different business fields to an exceptional
combination of skills: Preh possesses both the technological expertise to manufacture
optically and haptically sophisticated control elements made of advanced materials and
the know-how to develop electronic and software solutions for complex applications and
innovative functionality. Jointly with the company’s management, we plan to consistently
develop and employ Preh’s potential. Preh intends to expand existing customer relations
and access new clients through further internationalization.
www.preh.de
35

www.babcock-borsig-service.de
36
Babcock Borsig Power Service GmbH
Oberhausen
An integral constituent of a country’s infrastructure is a stable and efficient supply of
energy. It takes regular maintenance, servicing and repair to ensure that power plants
generate electricity economically and reliably. As power plants age, modernization or
renovation projects can serve to enhance life cycles and upgrade their efficiency standard.
This is the business of Babcock Borsig Service GmbH.
Babcock Borsig Service GmbH and its subsidiaries provide a range of services largely
for fossil-fueled power plants in Europe, Africa, and the Middle East. Employing a staff
of 2,300, this enterprise generates annual sales of approximately 340 million euros
(2002/03). The company has a leadership position in Germany and the Gulf region.
The Service division was part of the sound core of the former Babcock Borsig group;
nevertheless, parts of the Service division were automatically drawn into the insolvency
proceedings as a result of the parent company’s insolvency. During the insolvency plan
proceedings, which had been ongoing since September 2002, the service group continued
to operate profitably: customer relations were pro-actively maintained and projects
completed on schedule. Insolvency plan proceedings that had been initiated on the assets
of Babcock Borsig Service GmbH and two of its subsidiaries have been dropped.
Our long track record in the machine and plant construction industries as well as the
industry-linked service business was a particular benefit in finalizing this transaction.
Separating an internationally operating group of companies out of pending insolvency
proceedings without damaging its business and arranging a new, sound finance base
presented a special challenge.
Realizations – Return targets achieved
We successfully completed the realization of two management buyouts this past
financial year and profitably disinvested more than three fourths of our remaining shares
in Andritz AG through a secondary offering. In all instances, the returns we achieved
were commensurate with our targeted standard of 25 percent annually before taxes.
We sold our shares in automotive supplier Edscha AG in November 2002 to a financial
investor. The selling price amounted to 26 euros per share, enabling us to realize a sizeable
capital gain by this sale. Edscha had exhibited excellent progress since we entered
this investment in September 2000. The company’s strategic positioning had fundamentally
improved. Revenues, market shares and profits had grown faster than the market,
which constituted a driver for this sale.
Our interest in Andritz AG was largely sold in June 2003. We disinvested 82 percent
of our block of shares in a secondary public offering in Austria. Measured against acquisition
cost, the selling price is virtually double the capital invested. The secondary offering
for Andritz shares was one of the first successful transactions executed through the
stock market in 2003.

Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Management Buyouts
Deutsche Beteiligungs AG invested in Andritz AG (Graz, Austria) in December 1999
jointly with other financial investors in a transaction led by its Austrian private equity
partner Unternehmens Invest AG. Deutsche Beteiligungs AG had held 3.2 percent of the
shares; a managed co-investment fund owned a further 3.2 percent interest. Pursuant
to the disinvestment, both parties each now hold a 0.6 percent interest in this worldwide
leader in customized facilities, systems and services for the pulp and paper industry,
the steel industry, and other specialized industrial sectors.
By the end of August 2003, we had also sold the shares we held in the Global Power
Equipment Group Inc. Our exit from our investment in this American manufacturer of
equipment for gas power plants commenced with the company’s initial public offering
in May 2001. After the regulatory lock-up periods had expired, we sold our shares via
the stock exchange. We doubled the capital originally invested.
We entered the investment in Global Power by way of the co-investment right granted
to us as an investor in our American private equity partner’s fund, Harvest Partners III.
Following the initial public offering in 2001, Deutsche Beteiligungs AG and its co-investment
fund had each held 2.1 percent of the shares.
Selected MBO investments
In addition to Casco Surfaces, schlott gruppe AG, AKsys GmbH and Lund International
Holdings Inc. are, by book value at October 31, 2003, among the ten largest investments
in the portfolio:
schlott gruppe AG
FY 2002/2003 FY 2002 Change*
Sales € 613.7 million € 505.0 million n.a.
Earnings (EBIT) € 25.6 million € 35.5 million n.a.
*not comparable due to changes in the group of consolidated companies and a changeover in the fiscal year
Investment Equity share
Sales T€ 17,392 14.02%
Parallel fund another 7.7%
First invested in December 1999
Following a weak first six months, business activity for schlott gruppe AG (formerly
schlott sebaldus AG, renamed in March 2003) clearly recovered in the second half of
the 2002/2003 financial year. At September 30, 2003, sales had reached 613.7 million
euros, EBIT (earnings before income and taxes) amounted to 25.6 million euros. These
previous year’s figures are not comparable, as this was an incomplete financial year. The
earnings improvement in the second half of the year stems from cost optimization following
the company’s relocation to its new, ultra-modern site in Nuremberg’s harbor
district. Another key factor is that schlott is now able to profit from economies of scale
following the integration of the Broschek group.
www.schlottgruppe.de
37

38
Jointly with a managed fund,
Deutsche Beteiligung is the
largest investor in schlott
gruppe AG. The management
also holds interests in the
company. We plan to further
support schlott gruppe AG en
route to implementing its
strategy, thereby building the
value of our investment.
www.aksys.de
AKsys was formed in a management
buyout in December 2001.
Deutsche Beteiligungs AG and
three other financial investors
financed the transaction.
Through the merger with Faist,
the Faist family has now joined
the group of shareholders. The
majority remains in the hands of
the financial investors. Management
holds some nine percent
of the stock.
The acquisition of the Broschek group (Hamburg) enabled schlott to expand its position
as the third-largest European provider in the intaglio printing market.
The management of schlott gruppe expects that the capital spent at the site in Nuremberg’s
harbor district will continue to show effects in the 2003/2004 business year. schlott
has increased productivity and markedly reduced cost. Management believes that the
company has thus achieved an excellent starting position to profit from the anticipated
upswing in the economy, but also feels well equipped through the new cost structure,
should the market remain slow. The analysts of Landesbank Baden-Württemberg share
this opinion: they expect strong earnings growth for 2003/04 and, in their research report
of October 2003, have up-graded schlott stock from “hold” to “buy”.
AKsys GmbH
Worms
FY 2003* FY 2002 Change
Sales € 356.0 million € 371.8 million** –4.2%
* preliminary ** pro forma
Investment Equity share
T€ 12,085 10.09%
Parallel fund another 30.1%
First invested in December 2001
Following the merger with Faist Automotive GmbH in November 2002, Aksys resolutely
pursued the integration process and reorganized its operations to form the business fields
of sound deadening and absorption, sound insulation, and engineering plastics. In line
with our objectives, AKsys further expanded its business in the United States. Sales to
key clients BMW, DaimlerChrysler and VW were maintained or slightly expanded. AKsys
also registered revenue growth in household appliance electronics to customers such as
General Electrics, Bosch, and Whirlpool. However, against the background of the slow
business trend, sales to other clients (e.g. Renault, Opel/Saab) were somewhat lower. The
difficult market environment marked by stagnating, slightly declining car sales impaired
AKsys’ sales growth. Thus, sales in 2003 are slightly below those of the previous year.
In 2002, AKsys’ sales developed in congruence with the growth planned: including
Faist, sales had reached 371.8 million euros, or 3.9 percent over those of the year before
(358.0 million euros).
AKsys today ranks among the top European automotive suppliers for acoustics systems
and sophisticated engineering plastics construction modules. We feel confident that this
company will return to a pattern of growth in 2004 and increase both sales and earnings.

Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Management Buyouts
Jointly with management, our common objective is to expand AKsys’ market-leading
position in Europe in the segments of acoustics and glass-fiber reinforced plastics and also
achieve a significant ranking globally. Through the merger with Faist Automotive GmbH,
the enterprise now is a supplier of integrated systems and has come closer to reaching
its declared growth target. This merger involved a further investment of approximately
2.1 million euros by Deutsche Beteiligungs AG.
Lund International Holdings Inc.
Duluth, Georgia (USA)
FY 2003* FY 2002 Change
Sales US $ 153.1 million US $ 154.8 million –1.1%
* preliminary
First invested in September 1997
Investment Equity share
T€ 11,176 10.09%
Lund is a manufacturer of accessories for sports utility vehicles, vans and pick-ups.
A leading provider in the US for window visors, hood shields and running boards, Lund
and the entire competitive field were hit by consumer restraint resulting from general
economic conditions in past years. In 2003, Lund completed a comprehensive restructuring
program. Sales in the second half of the year were clearly above those of the previous
year. The company’s management anticipates that Lund stands to profit more than other
competitors from a reviving economy ushering in lower unemployment rates and greater
consumer confidence. In January 2003, the company was completely delisted. In conjunction
with that move, we increased our investment in Lund by 0.9 million euros.
Indications of a turnaround emerged in 2002: sales totaled US $154.8 million, which
were clearly above those of the previous year (US $143.7 million).
In financial year 1999/2000, we had performed a valuation adjustment of 50 percent
on our investment. In view of the completed restructuring program and against the backdrop
of the improvement in sales and earnings, we have partially reversed this writedown.
www.lundinternational.com
Our American private equity
partner Harvest Partners
acquired Lund International
Holdings Inc. in 1997. As an
investor in the Harvest Partners
fund, we made use of our
co-investment right and have
directly belonged to the group
of shareholders since then.
39

40
www.homecaresupply.com
www.ds-technologie.de
www.edgencorp.com
Our portfolio additionally contains the following management buyouts (not included
are investments with a share of less than one percent of the portfolio. Investments of
this size account for less than ten percent of the portfolio):
Home Care Supply Inc.
Beaumont, Texas (USA)
Distributor of home health-care products
FY 2003* FY 2002 Change
Sales US $ 168.0 million US $ 157.8 million 6.5%
* preliminary
DS Technologie GmbH
Mönchengladbach
Special machine tool construction
Edgen Corp.
Baton Rouge, Louisiana (USA)
Distributor of steel pipes
Investment Equity share
T€ 7,410 5.85%
Parallel fund another 5.85%
First invested in February 1998
FY 2003* FY 2002 Change
Output** € 122.5 million € 112.1 million 9.3%
* preliminary ** Revenues plus inventory changes and own work capitalized
Investment Equity share
T€ 7,163 39.6%
Parallel fund another 39.6%
First invested in July 1998
FY 2003* FY 2002 Change
Sales US $ 150.0 million US $ 212.3 million –29.3%
* preliminary
First invested in October 1996
Investment Equity share
T€ 6,495 16.4%

Hochtemperatur Engineering GmbH
Mainz-Kastel
Development of plants and components for high-temperature processes
IntelliRisk Corp.
Columbus, Ohio (USA)
Accounts receivable collection/call center services
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Management Buyouts
FY 2003* FY 2002 Change
Sales € 192.8 million € 221.8 million –13.1%
* preliminary
FY 2003* FY 2002 Change
Sales US $ 296.0 million US $ 338.9 million –12.7%
* preliminary
Investment Equity share
T€ 6,218 31.2%
Parallel fund another 62.3%
First invested in June 2002
Investment Equity share
T€ 3,917 5.46%
Parallel fund another 5.46%
First invested in August 1998
www.hte-group.com
www.irmc.com
41

After getting the facts on paper, an on-site visit is a must to get
the complete picture. The aim is to gain an in-depth impression
of the target company’s manufacturing sites, subsidiaries, clients
and suppliers in a relatively short period of time. That takes
more than paperwork. Selective trips to target companies are
therefore imperative during the due diligence process, to give
the right balance to the facts and figures.
42

EXPANSION FINANCING –
REACHING FOR COMMON GOALS
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Expansion financing
In the past, we have invested in minority holdings: we are
a partner to enterprises in reaching jointly defined growth
targets. In most cases, these enterprises are family-owned,
and the target is frequently an initial public offering. Currently,
however, this realization strategy is impaired, since
capital markets are not receptive for new issuances. Other
exit channels are difficult to access as a minority shareholder.
Ultimately, this is opposed to our goal of realizing value
appreciation through disinvestments, and expansion financing
investments will now only be made in exceptional
cases.
Our investment strategy has been adapted to changed market conditions. Regardless
of this change, Deutsche Beteiligungs AG is a strong, reliable partner to portfolio companies
in which it holds a minority interest en route to realizing their ambitious goals.
We give our portfolio companies the support they need in preparing for flotation. Other
companies classified in this business field may already have achieved a stock market listing.
This is frequently an initial key step toward an exit and the realization of the value
created.
In line with our strategy, the share of expansion financing investments in the portfolio
again declined in financial year 2002/2003. We assume that this trend will continue in
the coming years: our strategy is to invest at least 80 percent of our capital in management
buyouts in German-speaking countries. Valued at acquisition cost, expansion
financing investments accounted for 117.2 million euros, or 39.1 percent of the portfolio,
at October 31, 2003. Four relatively small holdings in this business field were disinvested
this reporting year, thereby raising the average size of expansion financing investments
from 6.64 million euros to 7.81 million euros.
Growth financing declines
43

44
Share of expansion
financing investments
in total portfolio
Portfolio volume
Number of investments
FY 2002/2003
FY 2001/2002
FY 2000/2001
Volume
November 1, 2002 € 126.2 million
Investments € 1.7 million
Disposals/Repayments € 10.7 million
October 31, 2003 € 117.2 million
November 1, 2002
Number
19
Investments 0
Disposals/Repayments 4
October 31, 2003 15
Realizations – Minor holdings disinvested
This reporting year, we again disinvested a number of expansion financing holdings.
In March 2003, we sold our interest in Computec Media AG. We entered this investment
in November 2000 to enable the sale of Gong Verlag GmbH. Gong Verlag was
formerly part of the Sebaldus group. Computec had belonged to the Gong portfolio, the
buyer of which, however, did not wish to acquire Computec.
Furthermore, we sold our interests in three of the smallest holdings in the portfolio:
Heylo Energietechnik GmbH, the Vogel group, and Vitas Inc.
After the close of the 2003/2003 financial year, we completed the disinvestment of
our stake in Victorvox AG, a transaction that had been contracted in October 2003.
Measured by the value carried for this investment, we achieved a minor capital gain.
Selected expansion financings
39.1 %
40.3 %
46.5 %
Bauer AG, Lignum Technologie AG, Hörmann KG, and Hucke AG are, by book value
at October 31, 2003, among the ten largest investments in the portfolio of Deutsche
Beteiligungs AG:

Bauer AG
Schrobenhausen
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Expansion financing
FY 2003* FY 2002 Change
Output** € 580.5 million € 591.0 million –1.8%
*preliminary **Revenues plus inventory changes and own work capitalized
First invested in September 1996
In recent years, this worldwide leading provider in special deep foundation construction
had significantly expanded the share of its machine construction business to 36
percent. To create the required capacities, the company acquired new premises in 2003.
The result for 2003 is expected to be slightly lower than the previous year. Although total
output will be level with that of the prior year, temporary impairment in Asia due to SARS
and the exchange rate gyration of the US dollar have had effects on income.
The family owners and Deutsche Beteiligungs AG are both targeting a stock market
listing for Bauer. By issuing an annual report and other investor relations activities, Bauer
has opened up to third parties and augmented its potential for flotation. Ranking as the
worldwide leader in special deep foundation construction, Bauer is well poised in the
market and geared to the future.
Lignum Technologie AG
Schopfloch
Investment Equity share
T€ 27,594 41.2%
FY 2003* FY 2002 Change
Sales € 615.0 million € 623.0 million –1.3%
*preliminary
First invested in January 1997
Investment Equity share
T€ 22,583 21.37%
Lignum Technologie AG is a worldwide leading manufacturer of machinery and plants
for the woodworking industry, such as for the manufacture of furniture. In 2003, Lignum’s
key markets developed along similar lines as in the year before: new momentum came
neither from the domestic market, nor from North America. The west European market
remained stable on a low level. By contrast, this world-market leader in woodworking
machinery registered solid progress in east Europe, particularly in the states of the former
Soviet Union, as well as in Asia. The acquisition of Swiss-based Spoerri AG, effective
January 1, 2003, will drive the expansion of Lignum’s worldwide service and sales network.
In total, sales in 2003 will slightly exceed those of the prior year.
www.bauer.de
We first invested in the Bauer
group in 1996 and today hold
41.2 percent of the stock. The
Bauer family is the principal
shareowner. The equity provided
by Deutsche Beteiligung was
used to finance the company’s
internationalization and external
growth.
www.lignum-ag.com
45

We have been a private equity
partner to Lignum Technologie
AG since January 1997 and hold
21.37 percent of the shares.
46
www.hoermann-gruppe.de
We first invested in the
Hörmann group in May 1997
via a capital increase that served
to finance expansion, and today
own a 28 percent interest. The
Hörmann group hold 63 percent
of the shares in Funkwerk AG.
The group’s portfolio includes
holdings in approximately 20
other enterprises that aim to
achieve a leading position in
their respective markets by
providing state-of-the-art
expertise and qualified service.
The group’s market focus is the
electro industry and industrial
services primarily for the
automobile industry.
Following the record highs achieved in 2000 and 2001, Lignum’s business was hit by
the weakness in the economy and the woodworking industry in financial year 2002. World
market volumes for woodworking machinery dropped by more than 30 percent from 2000
to 2003. Lignum responded quickly by installing a broad-based capacity-adjustment and
cost-cutting program.
For 2004, earnings are expected to rise markedly against the previous year, driven by
a cost-cutting program initiated and implemented in 2003 (reductions in staff, lower
overheads, and, not least, a certain degree of market recovery). Flotation remains the
common objective of Lignum’s shareholders.
Hörmann GmbH & Co. Beteiligungs KG
Kirchseeon
FY 2003* FY 2002 Changes
Sales € 350.0 million € 279.7 million 25.1%
*preliminary
First invested in May 1997
Investment Equity share
T€ 13,749 28.0%
In 2003 again, the progress exhibited by the Hörmann group was largely driven by
Funkwerk AG, the leading provider for communication systems used in vehicles, by public
transportation companies, enterprises and institutions. At the close of the first nine
months of the 2003 financial year, sales were already at levels originally forecast for the
complete year: at September 30, 2003, revenues had totaled 125 million euros, up 79
percent from the year before. Earnings before interest and taxes (EBIT) amounted to
11.5 million euros, or 150 percent over those of the comparable period the previous
year.
The high inflow of orders fuels expectations that the growth dynamism will continue
into the coming months. For the complete 2003 financial year, Funkwerk’s management
targets sales of 160 million euros, with earnings at some 12 million euros.
Jointly with the majority shareholder, we plan to further optimize Hörmann’s portfolio
and achieve an appreciation of its value in coming years.

Hucke AG
Lübbecke
(through Bowa Beteiligungsgesellschaft mbH & Co. KG)
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Expansion financing
FY 2002/2003 FY 2001/2002* Change
Sales € 148.7 million € 146.6 million –
Result of ordinary activity € 32.6** million € –9.1*** million –
* Short fiscal year Nov.1, 2001- April 30, 2002 ** incl. extraord. income from sale of Basler group *** thereof € 7.6 mn for special charges
First invested in February 1995
Investment Equity share
T€ 8,360 29.5%
In 2003, Hucke acquired the proprietary rights for the Venice Beach brand and the
license for the More & More children’s label – both established brand names – in line with
the corporate strategy. Hucke financed the acquisitions as well as a marked reduction in
debt by proceeds from the sale of the Basler group. Furthermore, the group completed
its reorganization program: a separate division was created for each product range. These
divisions are now organized directly under the roof of Hucke AG, eliminating intermediary
companies. Management expects these measures to generate significant improvement
in cost structures, while also creating the required flexibility to remain competitive in the
marketplace.
For the financial year ended April 30, 2003, a dividend of 0.25 euros per share was
disbursed to shareholders. Due to the preceding short fiscal year and the extraordinary
effects resulting from the sale of the Basler group, a comparison with the previous year
is not meaningful.
For the 2003/2004 financial year, Hucke’s management anticipates that the structural
changes which have been implemented will take further effect and gradually usher in
the targeted positive earnings position. Against this backdrop, management expects a
balanced operational result for the current financial year (2003/2004).
The company plans to cautiously expand and round out the existing divisions by
complementary acquisitions, particularly of licenses.
www.hucke.de
We have held an interest in
Hucke, one of the largest
manufacturers of apparel in
Germany, through Bowa Beteiligungsgesellschaft
mbH & Co.
KG since February 1995.
47

48
www.hkl-baumaschinen.de
www.dr-vogler.de
Our portfolio additionally contains the following expansion financing investments
(not included are investments with a share of less than one percent of the portfolio.
Investments of this size account for less than ten percent of the portfolio):
HKL Baumaschinen GmbH
Hamburg
Sales and rentals of construction machines
FY 2003* FY 2002 Change
Sales € 130.6 million € 130.0 million 0.5%
*preliminary
First invested in February 1995
Unternehmensgruppe Dr. Werner Vogler
Bad Homburg
DaimlerChrysler representative with eight locations, new and used-vehicle dealer
(cars and trucks) as well as service, maintenance and repair
FY 2003* FY 2002 Change
Sales € 93,2 million € 97,4 million –4.3 %
*preliminary
Investment Equity share
T€ 8,241 silent
Investment Equity share
T€ 5,546 silent
Parallel fund another 30.0 %
First invested in 1995

Otto Sauer Achsenfabrik Keilberg
Bessenbach
Manufacturer of axles for heavy-duty truck trailers
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Expansion financing
FY 2003* FY 2002 Change
Sales € 247.3 million € 242.7 million 1.9%
*preliminary
First invested in April 1997
JCK Holding GmbH Textil KG
Quakenbrück
Production and trading of apparel
FY 2003* FY 2002 Change
Sales € 425.5 million € 376.0 million 13.2%
*preliminary
Investment Equity share
T€ 5,138 silent
Investment Equity share
T€ 3,601 3.6%
Parallel fund another 14.4%
First invested in June 1992
www.saf-achsen.de
49

We want to know what makes a company “tick” and personally
experience its corporate culture. That is why we take an in-depth
view: How state-of-the-art is production; how motivated are
the employees? Is an expert’s opinion on environmental issues
needed; could contamination or residual pollution pose a risk?
How much does the enterprise depend on suppliers; how strong
are its ties to customers? Numerous talks and discussions round
out the picture, enabling us to assess the opportunities and risks
that come with the purchase to an ever better extent.
22

INTERNATIONAL BUYOUT FUNDS –
BALANCE IN THE PORTFOLIO
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Investments in funds
We not only invest in Germany, but in other countries as
well. For a number of reasons: partnerships with established
international private equity firms improve our competitive
standing – as this past financial year impressively shows.
In the future, we plan to highlight this benefit even more.
Moreover, this strategy enables us to gain access to attractive
international investment opportunities. International
investments also contribute towards balancing our portfolio
geographically. We intend to continue to pursue this strategy
in the future, even though we do not plan to increase the
share of international investments in the portfolio.
Profiting from performance in various ways
Our international activities are synchronized with our strategy of focusing on management
buyouts: we have, for the most part, invested in funds and private equity companies
in the United States and selected European countries that concentrate on majority acquisitions
in the form of management buyouts, as we do. Their activities are based on the
same investment strategy as ours: to provide capital to mid-market enterprises with excellent
market positions and seasoned managements. Deutsche Beteiligungs AG profits from
the capital gains generated by these funds. Same philosophy, broad expertise, long years
of experience – but in other markets: that way, we achieve a more favorable risk spread
than by focusing on one market alone.
Additionally, there are instances when negotiating a transaction alongside an international
partner constitutes a distinct competitive benefit – as our investment in Casco
Surfaces GmbH (page 24) shows. Casco’s management expects much of the support
that will be coming from Harvest Partners, who structured and completed this transaction
jointly with us. Should Casco Surfaces plan to grow through add-on acquisitions in
the US – Casco’s largest market – its management will have access to Harvest Partners’
network, experience, and industry insights.
This past year, we again committed and provided further capital to the funds managed
by our private equity partners in the US and France. The actual total of this portfolio is
thus partly linked to the investment progress and investment strategy of our private
equity partners. The share of fund investments in the portfolio has risen slightly to 22.2
percent. We have invested a total of 66.4 million euros in this business field.
Investing in several markets
achieves better risk spread
51

52
Share of fund investment
in total portfolio
FY 2002/2003
22.2 %
Portfolio volume
Number of investments
FY 2001/2002
FY 2000/2001
Volume
November 1, 2002 € 61.4 million
Investments € 9.7 million
Disposals/Repayments € 4.7 million
October 31, 2003 € 66.4 million
November 1, 2002
Number
12
Investments 0
Disposals/Repayments 0
October 31, 2003 12
Long-standing international partnerships
17.1 %
19.6 %
In the United States, we have been collaborating with Harvest Partners, Inc. (New York)
since 1985. Harvest Partners currently has some one billion US dollars under management.
Over the last 20 years, the company has provided equity to more than 60 enterprises,
many of them leaders in their industries. Deutsche Beteiligungs AG has been the
lead investor in all funds raised by Harvest Partners so far. The Harvest Partners IV fund
is currently in the investing phase.
Our private equity partner in Austria is Unternehmens Invest AG (UIAG, Vienna). The
inception of this partnership dates back to 1992. Currently, we jointly hold interests in
Andritz AG, JCK Holding GmbH Textil KG, and ET Multimedia AG. Deutsche Beteiligungs
AG owns 25.1 percent of the shares in UIAG, and we are jointly the lead investor
in Univest AG, a fund raised in 2000.
We have access to the French private equity market through Quartus Gestion S.A.
(Paris), a fund management company we sponsored jointly with the management.
Deutsche Beteiligungs AG is the co-initiator and principal investor in the fund Quartus
Capital Partners I.

Accessing opportunities in eastern Europe
Deutsche Beteiligungs AG does not want to limit international activities to established
private-equity markets. The Company also intends to utilize opportunities for private
equity investors in the reform countries of eastern Europe. We have therefore been operating
in selected eastern European countries as the manager of a fund, DBG Osteuropa-
Holding GmbH, since 1996. The fund’s capital totals 46 million euros. DBG Osteuropa-
Holding pursues a comparable investment strategy adapted to the requirements of local
markets: later-stage investments for privatizations, the financing of management buyouts
and buy-ins, as well as expansion financing investments.
This first fund’s capital has now been completely invested. A second fund, which is
to follow the first fund’s successful investing strategy, is now being raised. A first closing
held in January 2003 saw a commitment of 67 million euros; of that sum, 10 million
euros will be invested by Deutsche Beteiligungs AG. The fund has already completed its
first transaction.
Selected investments in funds
This past financial year, nearly one third of the total sum invested was allocated to
international projects. The capital was essentially channeled to the two Harvest Partners
funds and the Quartus fund.
Harvest Partners III
New York (USA)
The fund Harvest Partners III is now largely invested and is currently focusing on the
further development and realization of the investments in the portfolio. At October 31,
2003, the portfolio consisted of nine enterprises for which the fund had provided equity
amounting to 329 million dollars.
In total, these portfolio companies were impacted by severe winter weather in January
2003, the war in Iraq, and the weakness of the US economy. We have therefore recognized
a reduction in the value of this fund on the balance sheet. At three portfolio companies,
Harvest Partners has taken action to counter the unsatisfactory performance by
a change of management. It is anticipated that this and other action will take positive
effect during 2004.
For 2004, Harvest Partners plans to realize two investments from the portfolio.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Investments in funds
Fund volume US $ 362 million
Investment Equity share
T€ 16,201 6.9%
Parallel fund another 6.9%
First invested in October 1997
Second DBG Osteuropa-Holding
fund raised
www.harvpart.com
Harvest Partners III invests in
majority holdings in established
mid-market enterprises generating
annual sales of 40 million to
400 million dollars. In addition
to management buyouts, this
fund particularly focuses on buyand-build
concepts.
53

54
www.harvpart.com
Harvest Partners IV pursues a
similar investment strategy to
that of Harvest Partners III,
concentrating on the acquisition
of established businesses in
partnership with their
managements. More about the
management company Harvest
Partners and their investment
strategy on page 52.
www.quartus.fr
We sponsored the management
company Quartus Gestion S.A.
(Paris) collaboratively with a
team of experienced French
fund managers in 1998. Financial
investors have committed
the sum of 111 million euros to
Quartus’ first fund. The fund
primarily invests in buyout
concepts and expansion financing
in France. Deutsche Beteiligungs
AG is the lead investor in
the fund, committing the sum of
34.5 million euros. By October
31, 2003, we had disbursed a
total of 15.5 million euros to the
fund; 2.5 million euros have
already been returned.
Harvest Partners IV
New York (USA)
Fund volume US $ 558 million
First invested in October 2001
Harvest Partners IV is the follow-on fund to Harvest Partners III. Both funds purchased
Associated Materials Inc. (Akron, Ohio, USA, www.associatedmaterials.com) in
2002. This enterprise is a leading vertically-integrated manufacturer and distributor of
exterior building products largely used to repair or remodel homes. Associated Materials’
very satisfactory progress has surpassed the forecast.
In 2003, Harvest Partners made a further investment: in July 2003, this fund acquired
Casco Surfaces (page 24) jointly with Deutsche Beteiligungs AG. We provided 4.6 million
euros for this purchase, in line with our share in this fund. At the end of our 2002/2003
financial year, Harvest Partners IV had invested 63 million US dollars of its total assets of
558 million dollars.
Quartus Capital Partners I
Paris
Investment Equity share
T€ 12,589 11.65%
Fund volume € 111 million
Investment Equity share
T€ 6,452 15.48%
Parallel fund another 15.47%
First invested in July 1998
The investment team at Quartus is firmly networked within the French private equity
market. The fund has made five investments to date, one of which has already been
profitably realized. At September 30, 2003, nearly 40 million euros had been invested.
This past financial year, the fund acquired the Brunet group, a service provider for the
maintenance of electrical installations. For 2004, two new investments and one realization
have been slated.
The private equity market and, consequently, Quartus’ business will stand to profit
from the revitalization of the French economy.

Unternehmens Invest AG
Vienna
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Investments in funds
FY 2002 FY 2001 Changes
Equity € 48.8 million € 45.4 million –7.0%
Investment Equity share
T€ 7,409 12.56%
Parallel fund another 12.56%
First invested in March 1993
Since its inception in 1990, Unternehmens Invest, the largest and only listed private
equity company in Austria, has invested a total of 75 million euros in 18 enterprises.
Thirteen of these enterprises have meanwhile been disinvested. Unternehmens Invest
has, for example, successfully led Wolford, Palfinger and, most recently, Andritz AG, to
flotation.
The key event in the 2002/2003 financial year was a successful secondary public
offering for the stock of Andritz AG on the Vienna Stock Exchange. The issue was oversubscribed
several times (page 36).
HSBC Private Equity Fund II Limited
Cayman Islands
Private equity fund
Fund volume US $ 525 million
First invested in May 1997
Investment Equity share
T€ 4,974 1.9%
www.uiag.at
Our working relationship with
our Austria-based private equity
partners Unternehmens Invest
AG (UIAG) dates back to 1993.
Jointly with its co-investment
fund, Deutsche Beteiligungs AG
is UIAG’s largest shareholder.
55

Time is a key factor . . . and competitors do not waste it. Being
the fastest in presenting a coherent, sound financing concept
frequently promotes chances of winning the bid. That means
compiling the research of weeks, often months, and incorporating
experts’ assessments from the due diligence process. The financing
must be watertight. Finally, we’ve put everything together to
submit a concrete bid to the seller.

PORTFOLIO – BALANCED ACROSS
INDUSTRIES AND GEOGRAPHICALLY
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Portfolio profile
More than 90 percent of the new capital invested this past
financial year was channeled to management buyouts –
18.9 million euros to enterprises directly, 9.7 million euros
indirectly to international buyout funds. Our investments in
2002/2003 conform to the constituents of our portfolio
policy:
• To invest primarily in German-speaking countries.
• To invest at least 80 percent of our capital in management
buyouts.
• To invest two thirds of our capital in Germany and one
third internationally.
• To apportion no more than ten percent of the portfolio
value to any one investment as a rule.
• To diversify the portfolio across industries.
Portfolio volume declined slightly
At October 31, 2003, the portfolio volume of Deutsche Beteiligungs AG, including
Deutsche Beteiligungsgesellschaft mbH, totaled 299.7 million, invested in 43 enterprises
(October 31, 2002: 313.3 million euros, invested in 49 enterprises). The average investment
per holding rose from 6.39 million euros to 6.97 million euros. The average size
of investments in German-speaking countries was 7.81 million euros (previous year:
7.26 million euros), that of international investments 5.81 million euros (previous year:
5.56 million euros).
FY 2002/2003
FY 2001/2002
FY 2000/2001
FY 1999/2000
FY 1998/1999
43
49
49
50
47
Portfolio volume in millions of € Number
275
300
313
311
324
Rise in average sum per
investment
57

58
Portfolio according
to investment size
Geographic dissemination
of portfolio
Portfolio according
to business fields
Larger investment size per investee business
The share of the portfolio (measured at acquisition cost) attributable to smaller investments
again decreased in the reporting year. Some 86 percent (previous year: 85 percent)
of the capital was invested in projects valued at more than five million euros each.
Investments valued at acquisition cost of more than ten million euros account for nearly
60 percent of the portfolio (previous year: 55 percent).
Portfolio according to investment size
Volume Number
Less than Volume € 2.5 million Number
Less than _ 2.5 million
€ 2.5 to 5 million
_ 2.5 to 5 million
€
_
5
5
to
to
10
10
million
million
6.6 % 16
7.2 % 5
26.9 % 11
6.6%
7.2%
26.9%
16
5
11
€ _ 10 10 to to 15 15 million million 29.5 % 7
29.5% 7
More than than € _ 15 15 million 29.8 % 4
29.8% 4
Apportionment domestic/international constant
Geographic dissemination of our invested capital is consistent with our investment
target, with nearly two thirds (65.2 percent; previous year: 64.4 percent) invested in Germany
and other German-speaking countries. The greater part of our international portfolio
remains focused on the United States (27.1 percent; previous year: 28.3 percent).
Volume Number
Germany 61.1% 21
International 38.9% 22
thereof • German-speaking countries 4.1% 4
• USA 27.1% 10
• Europe 3.9% 3
• other countries 3.9% 5
Development of business fields
The apportionment of the portfolio among the Company’s three business fields
moved in line with our strategy this financial year. At 39.1 percent, expansion financing
lost in importance (previous year: 40.3 percent). Majority investments structured as
management buyouts are the focus of our investing activity.
Volume Number
Management buyouts 38.7% 16
Investments in buyout funds 22.2% 12
Expansion financing 39.1% 15

Industrial profile of portfolio balanced
Our portfolio is diversified across different sectors of industry. That allows us to achieve
a better risk spread. We changed the depiction of the industrial profile this financial year.
To augment transparency, the break-down now includes eight industrial sectors. Furthermore,
we have classified the holdings of our material fund investments to the respective
categories. Minor fund investments are contained in “Others”.
Industry profile of portfolio
Machine and plant construction (14.3 %)
Automotive supplies (6.2 %)
Construction (17.6 %)
Chemicals (6.6 %)
Printing, media, packaging (9.7%)
Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Portfolio profile
Others (6.1%)
Consumer goods (13.1%)
Industrial services
and logistics (11.0 %)
Trade (15.4 %)
59

If the seller is convinced, we’ve reached our first goal: the purchase
contract seals the past months’ analyses and negotiations. The
key thing now is to enhance the enterprise value: by sharpening
the corporate profile, by add-on acquisitions or spin-offs. Or by
innovative products or new market entries. That gets us off
to a new start. Our next goal: building value, and, ultimately,
profitably selling the enterprise in a few years.

MANAGEMENT’S REPORT
I. Market development
Overall, the private equity market declined slightly in financial year 2002/2003. Like
last year, however, the decrease in investments by private equity companies relates to
activities outside the market in which Deutsche Beteiligungs AG operates. Management
buyouts again registered a distinct rise over the prior year. For the first three quarters of
2002, some 600 million euros were invested in management buyouts in Germany; for
the first three quarters of 2003, the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften/
German Venture Capital Association reported that its members had made
investments of more than 850 million euros. This rise of more than one third reflects the
transaction development in that market segment, on which the investment activity of
Deutsche Beteiligungs AG is focused. In 2002, eleven management buyouts with a transaction
value of between 50 million and 250 million euros (mid-market segment) were
recorded in Germany. In the first nine months of 2003, there had been already twelve
management buyouts; in the same time period the transaction value at this mid-market
level increased to 1.8 billion euros, up from some 1.4 billion euros in 2002.
Globally, 2003 saw a reversal of the trend in private equity investments, which has
been negative in recent years. In 2001 and 2002, investments in both the United States
and key European private equity markets had fallen in comparison to each of the prior
years. The reasons were attributable to the sharp drop in venture capital activity that
was not offset by the growth in buyout financing. Preliminary data based on the semiannual
figures indicate that worldwide private equity investments in 2003 will finish
ahead of those completed in 2002.
This global market is valued at approximately 80 billion euros – many times more
than the size of the market accessible to Deutsche Beteiligungs AG. An assessment of
the market opportunities based on such global data does not do justice to the activities
of Deutsche Beteiligungs AG. We anticipate that the uptrend registered in our market
segment in 2003 will continue. In our view, the private equity business in Germany will
be driven by these factors:
1. Fueled by capital market expectations, large corporations will intensify their focus on
core businesses and part with peripheral activities. The large majority of management
buyouts in 2003 originated from these sources. However, experience proves that
financing aspects involved in disinvesting subsidiaries or individual business units are
clearly gaining in significance.
2. Stock markets as a financing option are still only available to a very limited extent to
high growth enterprises; this also holds true for disinvestments of existent holdings.
The private equity market stands to profit from these supplementary investment
opportunities: unsuccessful attempts to raise additional equity by selling parts of an
enterprise through an initial public offering may end up in a complete sale of that
company in a management buyout. Furthermore, management buyouts to a second
generation of managers, or secondary buyouts, have gained in importance as an exit
opportunity.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Management’s Report
Negative trend appears to have
bottomed out
61

62
3. The change in the lending policy of banks, which was, in part, triggered by the
announcement of new equity guidelines for banks ("Basle II"), poses a new challenge,
particularly to mid-sized enterprises. This change, in addition to the succession
issue in family-owned businesses, will boost the mid-term demand for private equity.
II. Group structure
Deutsche Beteiligungs AG has presented consolidated financial statements since fiscal
year 2000/2001. The consolidated financial statements include the following companies:
100%
▼
100%
▼
▼ ▼
▼
Deutsche Beteiligungs AG holds practically all German investments; international
investments are essentially held by Deutsche Beteiligungsgesellschaft mbH and Q.P.O.N.
Beteiligungs GmbH. Deutsche Beteiligungs AG co-invests alongside the new DBAG
Fund IV through DBG Fourth Equity Team GmbH & Co. KGaA. The management team
of Deutsche Beteiligungs AG co-invests through DBG Advisors GmbH & Co. KG. The
other four companies hold no material investments.
III. Development of the portfolio
Deutsche Beteiligungs AG
100% 100%
Undecima
DBG Auslandsbeteiligungen
Beteiligungs GmbH
GmbH & Co. KG
99%
▼
▼ 99%
DBG Fourth Equity Team
GmbH & Co. 1% KGaA
100%
▼
▼100%
Deutsche Beteiligungsgesellschaft
mbH
DBG Management
GmbH & Co. KG
▼
1%
100% 50%
▼ ▼ 100%
▼ 50%
▼
DBG Fifth Equity
Q.P.O.N.
International GmbH
Beteiligungs GmbH
33,33%
33.33%
▼
▼
DBG Advisors
GmbH & Co. KG
100%
At October 31, 2003, there were 43 companies or groups of companies valued at
acquisition costs of 300 million euros in the portfolio of Deutsche Beteiligungs AG. In
the previous year, the total number of investments was 49, valued at acquisition costs
of 313 million euros.
▼

Investments during the year under review totaled 30.8 million euros. Of this, 12.4
million euros are attributable to the most recent investment, Casco Surfaces GmbH. Two
other investments were contracted during the reporting year, but they were formally
completed in November 2003, subsequent to the close of the reporting year.
Seven investments valued at acquisition costs of 31.7 million euros were completely
released from the portfolio. Including repayments and partial sales, disposals from the
portfolio totaled 44.2 million euros. Thus, the total portfolio at acquisition cost declined
slightly from 313 million euros in the previous year to 300 million at October 31, 2003.
The number of investments in the portfolio fell to 43.
IV. Results of financial year 2002/2003 for the Deutsche Beteiligungs AG Group
Following a consolidated net loss of 15.8 million euros in the previous year, this year
saw a return to positive income. Consolidated net income amounted to 3.1 million euros.
The profit and loss account was drawn up in conformity with the German Commercial
Code. To facilitate an analysis of our corporate performance, the data has been
reclassified in the overview below.
in T€ 2002/2003 2001/2002 Change
in % absolute
Result of investment activity 18,408 19,311 –4.7 –903
Result of adjustments in valuation/provisions –10,010 –27,025 63.0 17,015
Result of investment management –4,012 –8,191 51.0 4,179
Result of ordinary activity 4,386 –15,905 20,291
Net income/loss 3,096 –15,840 18,936
Earnings per share in euros 0.22 –1.13 1.35
Income from profit disbursements, which actually represents income from investment management, was recognized in the result of
investment management. Income from write-ups on investments, which is required to be recognized under “Other operating income”
in conformity with the rules of the German Commercial Code, was allocated to the “Result of adjustments in valuation/ provisions”
for the above overview.
IV. 1. Result from investment activity
The sum of total income achieved through numerous smaller investment disposals and
profit distribution fell slightly short of the previous year’s income, which had recorded a
particularly high level of profit disbursements. Consequently, the result from investment
activity amounted to 18.4 million euros, down by 0.9 million euros, or five percent less
than last year’s 19.3 million euros.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Management’s Report
Net profit posted for the year
63

64
IV. 2. Result of the revaluation of portfolio investments
The objective in the private equity business is to achieve capital gains through the
realization of investments from the portfolio. Our strategy is to sustainably build the value
of our investments. Nevertheless, general economic or business developments in certain
portfolio companies may necessitate performing valuation adjustments or write-offs.
These are always based on an assessment of the longer-term value of an investment.
The net amount from the revaluation of investments totaling –10.0 million euros was
clearly less than the previous year’s unusually high level, which necessitated write-downs
of 27.0 million euros. At 18.9 million euros, the level of valuation adjustments required
to be performed on individual investments was again high in the reporting year. However,
four investments whose value had previously been depreciated have returned to a pattern
of good progress, thereby enabling an appreciation on their valuation totaling 6.8 million
euros. The net amount from these value movements represents a marked improvement
of 63 percent compared with the prior year.
IV. 3. Result from investment management
Income from investment management activity netted against expenses for canvassing
new transactions and the management of the portfolio amounted to –4.1 million euros,
thereby representing a distinct improvement of 4.1 million euros against last year’s total
of –8.2 million euros. This increase largely stems from management fee income from
the new DBAG Fund IV co-investment fund earned this year for the first time. Similar to
the previous year, income from fees paid for the structuring of transactions amounted
to 2.3 million euros. Income from fees for the management of co-investment funds rose
to 7.9 million euros. Contained in this sum is a one-off item of 0.8 million euros which
will not be applicable in the following financial years. Moreover, management fee income
declines as funds disinvest; thus, this year’s level of fee income should not be considered
a constant for the following years. At 7.6 million euros, personnel costs largely remained
unchanged. Fees paid for the placement of the new parallel fund amounted to 2.1 million
euros, following 1.5 million euros the prior year.
IV. 4. Net income for the year
Pursuant to last year’s consolidated net loss – the first in the Company’s history –
totaling –15.8 million euros, this year saw a return to a positive result, with consolidated
net income at 3.1 million euros. This advance of 18.9 million euros over the year before
is largely due to the valuation of portfolio investments, which clearly improved.
The return on equity, measured by the net income for the year in relation to the
opening equity at the beginning of the financial year, was 2.0 percent. At –9.2 percent,
the return was worse than last year as a result of the net loss.

IV. 5. Appropriation of the distributable profit
The balance sheet profit of Deutsche Beteiligungs AG amounts to 7.8 million euros;
the Group has posted a consolidated balance sheet loss of –2.4 million. In view of the
balance sheet loss at Group level, the Board of Management and Supervisory Board of
Deutsche Beteiligungs AG will recommend to shareholders at the Annual Meeting to
carry forward the balance sheet profit of Deutsche Beteiligungs AG.
V. Financial position
At October 31, 2003, the book value of financial assets declined by 13 million euros
to 257 million euros, down from 270 million euros the previous year. Net liabilities to
banks – i.e. bank borrowings less credit balances on accounts – were reduced to 70.7
million euros, a decrease of 26.5 million euros against the prior year’s 97.2 million
euros. The capital-to-assets ratio improved from the previous year’s 50.7 percent to
54.4 percent.
VI. Risk management
VI. 1. External risk exposure
The difficult economic environment in which Deutsche Beteiligungs AG and its portfolio
companies operated did not noticeably change in comparison with the previous
year. The persistent negative business trend particularly impacted investee businesses
outside Germany, necessitating valuation modifications on several investments. However,
toward the end of the financial year, first signs of a revitalization of the world economy
began to emerge, with new impulses for demand arising particularly in countries outside
Germany.
VI. 2. Company-specific risk exposure
Success in private equity is determined by these factors:
– to invest in promising enterprises in conformity with the portfolio strategy
– to build and sustain the value of existing and new investments
– to realize the value created through current income from investments and capital
gains from the sale of investments.
The prerequisites for this are a highly qualified, motivated team and a network of
contacts in order to solicit a continual stream of investment opportunities. There are
excellent opportunities for high returns on investments. But, by the nature of private
equity, there may also be a need to perform write-offs on investments in certain cases.
For the activities of Deutsche Beteiligungs AG, which comprise the evaluation and
the execution of investment transactions, operational risks play a subordinate role in light
of the relatively low number of total transactions, employees, and the involvement of
several employees in larger transactions.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Management’s Report
65

66
Optimization of monitoring
system on ongoing basis
VI. 2.1. Investments based on the portfolio strategy
Pursuant to the long years of experience which Deutsche Beteiligungs AG has in private
equity, a strategy has been laid down that targets a high yield potential on investments
while balancing the opportunities/risk profile. Beginning in the financial year 1996/1997,
Deutsche Beteiligungs AG has focused its investing activity on majority acquisitions or
investments in which the Company holds a majority interest jointly with other financial
investors. Investments in minority holdings are only made, if a public offering seems a
realistic exit option, or defined alternatives for the sale of a minority investment exist. To
minimize the risk inherent in early-stage and smaller enterprises, the Group companies
of Deutsche Beteiligungs AG principally invest in established enterprises that generally
achieve annual revenues clearly in excess of 50 million euros.
To spread risk exposure, the Company ensures that the maximum sum invested in
any particular portfolio enterprise is limited to ten percent of the consolidated financial
assets of the Group. At 10.7 percent, the investment in Bauer AG currently represents
the largest single holding, reaching this defined limit as a result of the reduced financial
asset volume.
Deutsche Beteiligungs AG invests in many sectors of the economy and the portfolio
is widely diversified. This minimizes risks that may arise from dependence on certain
industrial sectors, and from those industries’ susceptibility to business cycles. Nevertheless,
the portfolio exhibits certain focal points. At the closing date, investments in the machine
and plant construction sector accounted for 17.0 percent of the book value of the portfolio.
To reduce exposure to risks from economic cycles in different regions, we have continued
to diversify the geographical focus of the portfolio. We achieved our objective of
investing one third of the portfolio internationally several years ago. At October 31, 2003,
investments outside Germany totaled 35.9 percent of the book value of the portfolio.
Of this, the share of investments domiciled outside Europe amounted to 28.3 percent.
VI. 2.2. Building and sustaining the value of investments
To avoid or reduce exposure to risks, a comprehensive monitoring system has been
installed. This monitoring system is adapted and improved on an ongoing basis. Portfolio
companies basically report on their business development at monthly intervals. Additionally,
Deutsche Beteiligungs AG holds positions in supervisory or advisory bodies of major
portfolio companies. This places the Company in a position to take any necessary early
counteraction to negative developments. Only two international fund investments, constituting
a combined total of 1.1 percent of the portfolio, do not report on a quarterly
basis. In these cases, we solicit information on current developments through contacts
in the course of a year. Despite all risk reduction procedures, it will not be possible to
entirely prevent valuation adjustments on investments in certain individual cases. However,
their effects on the Company’s earnings should, among other things, be reduced
by the Company’s investment strategy.

Our support for the development of portfolio companies is not only directed at
reducing risks, but, primarily, at building value. Measures and decisions for action are
channeled through supervisory and advisory bodies of portfolio companies. To provide
the incentive for the staff and the Board of Management of Deutsche Beteiligungs AG
to personally commit to maximizing the profit from investments, a substantial part of
income is performance-related.
VI. 2.3. Focus on profitable realizations
A key factor for success in private equity is the realization of capital gains. Prior to
making an acquisition, we explore opportunities to profitably exit that investment again,
following a phase of building value. We principally will not enter an investment, if we
do not recognize realistic mid-term exit opportunities.
Moreover, we work on a number of exits simultaneously during the course of a
financial year to reduce the risk of depending too strongly on a single realization. Nevertheless,
the private equity business, by its nature, may be subject to comparative distortions
for reasons related to the year-end closing date. Complex transactions such as trade
sales or public offerings may not always be completed within a certain financial year.
Delays may arise through changes in the capital market environment or for other reasons.
The realization of the Company’s investment in Edscha, for instance, was finalized in
early November 2002, shortly after the close of the 2001/2002 financial year, while the
transaction had largely been negotiated in 2001/2002. The capital gain from this transaction
was therefore realized in financial year 2002/2003.
In addition to capital gains from the realization of investments, income from investments
in the form of dividends, profit sharing, and interest income constitutes another
relevant source of earnings for Deutsche Beteiligungs AG. The annual volume of this
income is limited, however, and varies depending on the portfolio companies’ earnings
and financial position.
VII. Generation of investment opportunities
To ensure a steady stream of new investment opportunities, the Company has access
to a large national and international network of contacts to industrial enterprises, investment
banks, auditors, attorneys, etc. Deutsche Beteiligungs AG also benefits from its
position as the long-standing private equity partner to Deutsche Bank AG. Furthermore,
Deutsche Beteiligungs AG has built its own pool of industrial consultants, who, in addition
to their knowledge of and insights into particular sectors of industry, can mediate
contacts to enterprises in these industries.
The portfolio strategy, with its focus on majority acquisitions of larger companies, and
the targeted returns mean that the Company will be selective in acquiring new investments.
When comparing specific periods, fluctuations in the number of new investments
are therefore normal in our business and reflect the strict standards we apply to profitable
investments.
Deutsche Beteiligungs AG · Annual Report 2002/2003
Management’s Report
67

68
Management team shares in
investment performance
VIII. People
Deutsche Beteiligungs AG needs a qualified, highly-motivated team to realize its
objectives. In financial year 2001/2002, the Board of Management and a selected group
of investment team staff were asked, for the first time, to co-invest in direct investments.
The managerial team of Deutsche Beteiligungs AG thus shares in both the upside and
downside of the portfolio investments, while this policy also ensures that the interests
of the management team and those of Deutsche Beteiligungs AG coincide.
This co-investment activity is realized within the scope of a partnership participation.
This can result in a superior profit share, if outstanding returns are realized on these
investments within a defined holding period. The profit share is only paid if Deutsche
Beteiligungs AG or the investors in the respective co-investment fund have received a
minimum return on their invested capital. This minimum return currently amounts to
8.0 percent annually. The structure of the profit share, its implementation and set points
are in conformity with common practice in the private equity industry and constitute a
prerequisite for the placement of co-investment funds. The profit share of members of
the Board of Management is not expensed in the profit-and-loss account of Deutsche
Beteiligungs AG. For Board members, the profit share is income from an investment.
To create an additional incentive to enhance share performance on a sustained basis,
stockholders at the 2001 Annual Meeting resolved to install a stock option program for
700,000 stock options. Since then, 70,000 stock options for one share each of Deutsche
Beteiligungs AG have been granted in every financial year after the Annual Meeting to
a selected group of employees who have contributed positively toward the stock’s performance.
70,000 further stock options are granted to the members of the Board of
Management. An appreciation is achieved, if the performance of the shares of Deutsche
Beteiligungs AG exceeds that of the S-Dax. The options are exercisable not earlier than
three years after the date of grant. At the balance sheet date, an intrinsic value was only
attached to the stock options granted in 2003; at October 31, 2003, the option value
amounted to 3.20 euros per share.
Beyond that, we offer a motivating work environment characterized by lean reporting
lines, teamwork-based project organization and early distribution of responsibility and
authority.
The factors described are conducive to retaining key staff. The Company’s management
team of 15 people currently boasts an average of 9 years of service.
At the balance sheet date, the number of staff had declined from 51 to 50; of these
37 serve full-time, seven work part-time. Three employees are on parent leave. Three
apprentices are currently receiving their training for their future professions.

IX. Events subsequent to the closing date
After the close of the 2001/2002 financial year, two new investments at acquisition
costs of 21.9 million were added to the portfolio; these relate to the management buyout
of Babcock Borsig Service GmbH and Preh GmbH. There were disposals and partial
disposals amounting to 10.8 million euros. Of this, the largest amount is attributable to
the sale of Victorvox AG.
X. Outlook
Following the pronounced economic weakness this past financial year, indications of
a resurgence of the world economy are emerging with new impulses for demand arising
particularly in countries outside Germany. The sentiment on equity markets has taken a
turn for the better, as prices rise due to investors’ greater willingness to take risks. Furthermore,
there are signs of increasing activity on the M&A market. The private equity
market and mid-market transactions – the key segment on which Deutsche Beteiligungs
AG is focused – stand to profit from these favorable developments. The larger number
of transactions completed in the calendar year of 2003 attests to this. Three management
buyouts were contracted, whereas only one transaction was completed in each of the
two preceding years.
In light of the long years of economic slowdown and of structural aspects, there is
uncertainty about the magnitude of business recovery, particularly in Germany. Against
this backdrop and in view of the development in private equity’s mid-market segment
as well as the quality of the existing portfolio, we are, nevertheless, confident that
Deutsche Beteiligungs AG will exhibit positive progress.
Frankfurt am Main, December 2003
Deutsche Beteiligungs AG · Annual Report 2002/2003
Management’s Report
Deutsche Beteiligungs AG is
well poised
69

70
Assets
Notes Oct. 31, 2003 Oct. 31, 2002
in T€ in T€ in T€
Intangible assets 146 110
Fixed assets 628 700
Equity shares in subsidiaries 497 360
Equity shares
Loans to companies in which equity
246,499 259,769
shares are held 9,573 9,422
Long-term asset securities 356 156
Investments 256,925 269,707
Long-term assets 1
257,699 270,517
Receivables from subsidiaries
Receivables from companies
2
3,238 496
in which equity shares are held 2
5,388 8,339
Other assets 3 19,885 26,325
Receivables and other assets 28,511 35,160
Securities 4
122 102
Cash and cash equivalents 5,122 303
Current assets 33,755 35,565
Prepayments 494 688
291,948 306,770
Trustee claims 10,320 12,090

Liabilities and shareholders’ equity
Deutsche Beteiligungs AG · Annual Report 2002/2003
Financial Statements
Consolidated Balance Sheet for the year ended October 31, 2003
Notes Oct. 31, 2003 Oct. 31, 2002
in T€ in T€ in T€
Subscribed capital 36,400 36,400
Capital reserve 102,194 102,194
Legal reserve 403 403
Reserve for own shares 12 1
Other revenue reserves 21,775 21,557
Retained earnings 22,190 21,961
Balance sheet loss –2,374 –5,463
Minority interests 327 331
Total shareholders' equity 5
158,737 155,423
Pension provisions 13,231 12,701
Tax provisions 2,716 1,609
Other provisions 2,692 2,522
Provisions 6
18,639 16,832
Liabilities to banks 75,813 97,490
Trade accounts payable 1,956 1,634
Accounts payable to subsidiaries
Accounts payable to companies
53 1
in which equity shares are held 32,514 30,655
Other liabilities 3,192 4,733
Liabilities 7
113,528 134,513
Deferred income 1,044 2
291,948 306,770
Trustee liabilities 10,320 12,090
71

72
Deutsche Beteiligungs AG · Annual Report 2002/2003
Financial Statements Consolidated Profit and Loss Account
for the period from November 1, 2002 to October 31, 2003
Notes 2002/2003 2001/2002
in T€ in T€
Income from investments 8
9,289 11,767
Gains from investment disposals 13,910 15,463
Losses from investment disposals
Write-downs on investments and on
1,528 1,053
marketable securities 16,837 27,025
Other operating income 9
19,945 10,366
Personnel costs
Depreciation on fixed assets and
10
7,552 7,571
intangible assets 229 218
Other operating expenses 11
9,348 12,142
Net interest 12
–3,264 –5,492
Result of ordinary activity 4,386 –15,905
Taxes 13
1,290 –65
Consolidated net income (previous year: consolidated net loss) 3,096 –15,840
Minority interests 4 0
Loss (previous year: profit) carried forward from previous year –5,463 10,372
Withdrawals from retained earnings for own shares 0 5
Allocations to retained earnings for own shares 11 0
Consolidated balance sheet loss –2,374 –5,463
Earnings per share 0.22 –1.13

Deutsche Beteiligungs AG · Annual Report 2002/2003
Financial Statements Consolidated Cash Flow Statement
from November 1, 2002 to October 31, 2003
Inflows (+) / outflows (–) 2002/2003 2001/2002
in T€ in T€
Result for period
Write-downs / write-ups
3,096 –15,840
on long-term assets 10,356 26,604
Increase (+) / decrease (–) in accruals 1,807 –8,537
Profit (–) / loss (+) from disposals of long-term assets –12,382 –14,410
Increase (–) / decrease (+) in other assets (netted) 6,823 –3,564
Increase (+) / decrease (–) in other liabilities (netted) 1,952 7,456
Cash flows from operating activities 11,652 –8,291
Proceeds from disposals of property, plant and equipment
and intangible assets
Purchase of property, plant and equipment
52 10
and intangible assets –245 –222
Proceeds from disposals of long-term financial assets 45,781 51,536
Acquisition of long-term financial assets –30,744 –43,333
Cash flows from investing activities 14,844 7,991
Cash payments to shareholders (dividends) 0 –7,000
Proceeds from short or long-term borrowings 0 767
Cash repayments of short or long-term borrowings –21,677 0
Cash flows from financing activities –21,677 –6,233
Change in cash funds from cash-relevant transactions 4,819 –6,533
Cash funds at beginning of period 303 6,836
Cash funds at end of period 5,122 303
73

74
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS 2002/2003
A. Principal activity
Deutsche Beteiligungs AG was incorporated on December 10, 1984. The Company is
domiciled in Frankfurt am Main and listed in the Commercial Register at the District Court
of Frankfurt am Main under Section B, No. 52491. As a financial investor, Deutsche
Beteiligungs AG provides equity and financial instruments of a similar nature to wellpositioned
medium-sized enterprises. The Company substantially generates its income by
appreciating the value of the companies it purchases; Deutsche Beteiligungs AG realizes
these value enhancements when its investments are ultimately sold. The Group’s subsidiaries
pursue the same business activities or provide supporting services.
B. Consolidated companies
The consolidated financial statements include the principal Group companies, in
which Deutsche Beteiligungs AG, directly or indirectly, holds at least 50 percent of the
voting shares, or may exercise control in other ways. Effective October 26, 2001, an
obligation to present consolidated financial statements arose for the first time. The consolidated
financial statements at October 31, 2003 include the following companies:
Name and domicile of Equity share Held by
consolidated company %
DBG Auslandsbeteiligungen GmbH & Co. KG,
Frankfurt am Main
100.00 Deutsche Beteiligungs AG
Undecima Beteiligungs GmbH,
Frankfurt am Main
100.00 Deutsche Beteiligungs AG
DBG Management GmbH & Co. KG,
Frankfurt am Main
100.00 Deutsche Beteiligungs AG
Deutsche Beteiligungsgesellschaft mbH, 100.00 DBG Auslandsbeteiligungen
Königstein/Taunus GmbH & Co. KG
DBG Fifth Equity International GmbH, 100.00 Deutsche Beteiligungs-
Frankfurt am Main gesellschaft mbH
DBG Fourth Equity Team GmbH & Co. KGaA, 99.00 Undecima Beteiligungs
Frankfurt am Main GmbH
Q.P.O.N. Beteiligungs GmbH, 50.00 Deutsche Beteiligungs-
Frankfurt am Main gesellschaft mbH
DBG Advisors GmbH & Co. KG, 33.33 DBG Fifth Equity
Frankfurt am Main International GmbH

Deutsche Beteiligungs AG · Annual Report 2002/2003
Notes to the Consolidated Financial Statements 2002/2003
Changes in the group of consolidated companies in comparison to the status at
October 31, 2002 constitute the addition of DBG Management GmbH & Co. KG, since
this company is no longer of minor importance. DBG Management GmbH & Co. KG
was initially consolidated on October 31, 2003. Consequently, the profit and loss
account of this company is not yet included in the consolidated financial statements at
October 31, 2003.
The holding in Q.P.O.N. Beteiligungs GmbH was recognized in the consolidated
financial statements on a pro rata basis (proportionate consolidation).
Despite a voting interest of less than 50 percent, DBG Advisors GmbH & Co. KG was
recognized in the consolidated financial statements in conformity with Article 290, section
2, paragraph 2 of the German Commercial Code, since Deutsche Beteiligungs AG
has the power to appoint or remove the majority of the managing shareholders.
DBG Beteiligungs GmbH, Frankfurt am Main, in which Deutsche Beteiligungs AG holds
100 percent of the voting shares, was excluded from the consolidated financial statements,
since the commercial risk of its business activity – and, consequently, the business
policy – lies with other companies.
DBG Fifth Equity Team GmbH & Co. KGaA, Frankfurt am Main, in which a subsidiary
of Deutsche Beteiligungs AG holds 100 percent of the limited partner’s shares, was not
consolidated in the accounts, since significant and long-lasting restrictions exist that
impair rights in respect of this company’s assets and management.
DBG Jota GmbH and DBG Kappa GmbH, in which a subsidiary of Deutsche Beteiligungs
AG holds 100 percent of the shares and which are both domiciled in Frankfurt am
Main, were not consolidated, since the majority of the shares in the subsidiaries are held
temporarily.
Due to their minor importance, some subsidiaries in which Deutsche Beteiligungs AG
or an associated and consolidated company holds voting shares of more than 50 percent
were not consolidated. These largely relate to shell companies.
At-equity consolidation was not performed for equity shares in which voting rights of
20 to 50 percent are held, but no significant influence on operating policies is exercised.
This also ensued from the temporary nature of these investments, as stipulated by the
corporate purpose.
75

76
C. Principles of consolidation
The consolidated financial statements of Deutsche Beteiligungs AG were drawn up
and presented in accordance with the valid standards of the German Commercial Code,
using the accounting and valuation principles of the parent company.
Basis of presentation
The consolidated financial statements are based on the individual annual accounts of
the consolidated companies, which are drawn up according to standardized accounting
and valuation policies. For subsidiaries whose balance sheet date is not identical to that
of the Group, consolidation was based on interim accounts.
The capital consolidation of the subsidiaries has been performed using the fair value
purchase method by revaluing the assets and debt of consolidated subsidiaries and subsequently
matching the equity share of the subsidiary against the parent company’s
investment book value. Asset-side balancing items exhibiting the nature of goodwill are
offset against retained earnings. Liability-side balancing items relate to realized earnings
and are taken to retained earnings.
Sales, expenditures and earnings as well as all receivables and liabilities from intercompany
transactions have been eliminated.
Principles of accounting
The profit and loss account has been prepared using the total expenditure format. To
provide for the special circumstances governing the private equity business, the legallyrequired
structure of the profit and loss account was modified according to Article 265,
section 6 of the German Commercial Code to include the positions “Gains from investment
disposals” and “Losses from investment disposals.”
For the sake of clarity and in compliance with Article 265, section 7, No. 2 of the
German Commercial Code, individual positions in the profit and loss account have been
combined; detailed disclosures are contained in the notes.
“Gains from investment disposals” discloses the net proceeds from realized revenue
less the book value.
Contained under “Losses from investment disposals” are the net losses, insofar as
realized revenue is less than the book value.
For a better overview, the legally-required information and commentary on individual
items in the balance sheet and the profit and loss account, as well as the commentary
which may either be contained in the balance sheet, the profit and loss account, or the
notes to the financial statements, are all shown in the notes to the financial statements.

D. Accounting policies
Deutsche Beteiligungs AG · Annual Report 2002/2003
Notes to the Consolidated Financial Statements 2002/2003
Fixed assets are valued at purchase cost, less regular depreciation (straight-line method).
Depreciation is based on normal useful life.
Assets of a minor value are written off in the year of acquisition. Minor-value assets
are treated as disposed in the assets account of the acquisition year.
Additions to movable fixed assets during the first half of the year are depreciated at
the full annual rate; additions during the second half of the year are written off at half
the annual rate.
Financial investments are generally valued at acquisition cost. Long-lasting reduction
in the value of an investment is accounted for by non-scheduled depreciation.
Receivables and other assets are principally carried at face value. Recognizable risks
have been accounted for by value adjustments.
Marketable securities are valued at the lower of cost, market or professional valuation.
Provisions covering all recognizable risks and contingent liabilities are calculated at
their probable realistic value at the balance sheet date.
Pension obligations were determined on the basis of the accrued benefit valuation
method, which is applied for disclosures in conformity with the “International Accounting
Standards” (IAS). The discount rate is 5.5 percent p.a. Factors influencing valuation
are average staff turnover and future salary and benefit increases. These were accounted
for at an assumed trend rate of 2.5 percent p.a.
Liabilities are carried at their repayment amount.
Financial investments in foreign currency are principally translated at the exchange
rate at the time of purchase; receivables and accounts payable denominated in foreign
currency are translated at the lower of currency rate at the purchasing date, balance
sheet date or repayment date. Foreign currency items in the profit and loss account are
translated at the exchange rate on the date of payment or receipt of payment.
Trust assets consist of receivables valued at purchase cost. These are matched against
liabilities in the same amount.
Long-term assets
Current assets
Provisions
Liabilities
Currency translation
Trust assets
77

78
Assets 1
Long-term assets movement October 31, 2003
E. Notes to the Balance Sheet
in T€ Acquisition cost Accumulated depreciation Net book value
Nov. 1, 02 Addi- Dispos- Oct. 31, 03 Nov. 1, 02 Addi- Dispos- Write- Oct. 31, 03 Oct. 31, 03 Oct. 31, 02
tions als tions als ups
I. Intangible
assets
Concessions, patents
and similar rights 204 103 39 268 94 61 33 0 122 146 110
II. Fixed assets
Office and
operational equipment 1,348 142 132 1,358 648 168 86 0 730 628 700
III.Investments
1. Equity shares in
subsidiaries 979 166 29 1.116 619 0 0 0 619 497 360
2. Equity shares 300,157 27,932 41,204 286,885 40,388 16,837 12,046 4,793 40,386 246,499 259,769
3. Loans to companies in
which equity shares
are held 14,791 2,446 4,212 13,025 5,369 0 0 1,917 3,452 9,573 9,422
4. Long-term
asset securities 313 200 0 513 157 0 0 0 157 356 156
316,240 30,744 45,445 301,539 46,533 16,837 12,046 6,710 44,614 256,925 269,707
317,792 30,989 45,616 303,165 47,275 17,066 12,165 6,710 45,466 257,699 270,517
Receivables 2
Other assets 3
Securities 4
in T€ Oct. 31, 2003 Oct. 31, 2002
Subsidiaries 3,238 496
Companies in which equity shares are held 5,388 8,339
(thereof, maturing in more than 1 year) (21) (21)
Accounts receivable from companies in which equity shares are held stem from profit
and interest entitlements as well as consulting services.
Other assets largely pertain to tax credits.
8,626 8,835
in T€ Oct. 31, 2003 Oct. 31, 2002
Own shares 12 1
Other securities 110 101
122 102

Deutsche Beteiligungs AG · Annual Report 2002/2003
Notes to the Consolidated Financial Statements 2002/2003
in T€ Oct. 31, 2003 Oct. 31, 2002
Subscribed capital 36,400 36,400
Capital reserve 102,194 102,194
Retained earnings 22,190 21,961
Consolidated balance sheet loss –2,374 –5,463
Minority interests 327 331
158,737 155,423
The subscribed capital (capital stock) is denominated into 14,000,000 common shares
without par value. Arithmetically, the capital attributable to each share is 2.60 euros.
Valid until March 20, 2007 and subject to the approval of the Supervisory Board, the
Board of Management is authorized to raise the capital stock of the Company by up to
T€ 18,200 through one or several issues of new bearer shares against cash or in kind
(approved capital).
Additionally, there is contingent capital of up to T€ 7,800 to grant holders or creditors
of warrants and/or convertible bonds issued until March 24, 2006 option rights or conversion
rights for up to 3,000,000 new shares, representing a proportionate share of the
subscribed capital, in conformity with the specific terms of the warrants or convertible
bonds.
There is also contingent capital available to enable the issuance of option rights for
the Company’s stock to members of the Company’s management team contributing to
the performance of the Company’s shares. The Company’s subscribed capital may be
raised by T€ 1,820 until March 24, 2006 to grant these option rights through an issuance
of up to 700,000 new shares, in conformity with the specific terms of the option rights.
The terms of the options are presented under “Other information.”
The shares of Deutsche Beteiligungs AG are traded consecutively on the stock
exchanges in Frankfurt am Main and Düsseldorf, and OTC-traded on the stock exchanges
in Berlin, Bremen, Hamburg, and Stuttgart.
The Board of Management offers employees and former employees of Deutsche
Beteiligungs AG and associated companies an employee stock purchase plan at preferential
terms which are oriented around tax legislation and limits. This has resulted in the
following transactions involving the Company’s own shares in financial year 2002/2003:
5
Shareholders’ equity
79

80
Development of
retained earning
Purchase/ No. of Share of
sales price shares subscribed capital
per share € T€ ‰
At Nov. 1, 2002 76 0.2 0.0
Date of purchase: Dec. 30, 2002 7.96 1,700 4.4 0.1
Date of purchase: June 5, 2003 6.67 3,630 9.4 0.3
Date of sales/transfer:
5,406 14.0 0.4
June 13, 2003 4.69 –3,630 –9.4 0.3
At Oct. 31, 2003 1,776 4.6 0.1
in T€ Legal Reserves Other Retained
reserve for own revenue earnings
shares reserves
At Nov. 1, 2002 403 1 21,557 21,961
Allocations
Increase in liability-side
11 11
balancing item 218 218
At Oct. 31, 2003 403 12 21,775 22,190
The legal reserve remained unchanged, since the amount under this item plus the
capital reserve total one tenth of the subscribed capital, as is required by Article 272,
section 2, No. 1 of the German Commercial Code.
Reserves for own shares were made in the amount disclosed on the asset side and
result from residual stock in conjunction with the employee stock purchase program.
Other revenue reserves contain a balancing item from capital consolidation totaling
T€ 3,523 (previous year: T€ 3,741). Similar to the prior year, it is comprised of an assetside
balancing item of T€ 4,782 and a liability-side balancing item of T€ 1,259 (previous
year: T€ 1,041). The changes result from the initial consolidation of a subsidiary.
Since the 2001/2002 financial year, members of the Board of Management have
been investing alongside DBAG, within the scope of a partnership participation in a private
equity fund and at a defined ratio, in the same companies in which Deutsche
Beteiligungs AG invests. Investments in funds are excepted. This can result in a superior
profit share, if superior returns are realized from these investments within a defined
holding period. The profit share is only paid if Deutsche Beteiligungs AG or the investors
in the respective co-investment fund have received a minimum return on their invested
capital. This minimum return currently amounts to 8.0 percent annually. The structure of
the profit share, its implementation and set points are in conformity with common practice
in the private equity industry and constitute a prerequisite for the placement of coinvestment
funds. The profit share of members of the Board of Management is not
expensed in the profit-and-loss account of Deutsche Beteiligungs AG; rather, it is recognized
under minority investments. For Board members, the profit share is income from
an investment.

Deutsche Beteiligungs AG · Annual Report 2002/2003
Notes to the Consolidated Financial Statements 2002/2003
In addition to the Board of Management, minority interests also include a selected
group of employees of Deutsche Beteiligungs AG who indirectly, through a partnership
participation in a private equity fund, invest in the same portfolio companies as does
Deutsche Beteiligungs AG.
The consolidated balance sheet loss contains loss carryforward of T€ 5,463 (previous
year: T€ 10,372).
in T€ Oct. 31, 2003 Oct. 31, 2002
Pension provisions 13,231 12,701
Tax provisions 2,716 1,609
Other provisions 2,692 2,522
The 1998 Klaus Heubeck actuarial charts were used to determine the pension
provisions.
Other provisions substantially pertain to personnel-related costs, guarantees, as well
as the cost for the year-end financial statements and the Annual Meeting.
F. Notes to Profit and Loss Account
18,639 16,832
in T€ Oct. 31, 2003 Oct. 31, 2002
Total due in less Total due in less
than 1 year than 1 year
Liabilities to banks 75,813 75,813 97,490 97,490
Trade accounts payable 1,956 1,956 1,634 1,634
Accounts payable to subsidiaries
Accounts payable to companies
53 53 1 1
in which equity shares are held 32,514 32,514 30,655 30,655
Other liabilities 3,192 3,192 4,733 4,733
(thereof, related to taxes) (674) (674) (564) (564)
113,528 113,528 134,513 134,513
in T€ 2002/2003 2001/2002
Income from equity shares 7,668 11,392
Income from loan investments 1,621 375
9,289 11,767
Income from equity shares also contains income from silent partnerships to which
the Company is entitled, irrespective of the partner company’s annual profit situation.
The greater part of income from equity shares is attributable to profit entitlements.
6
7
8
Provisions
Liabilities
Income from investments
81

82
Other operating income 9
Personnel costs 10
Other operating expenses 11
Net interest 12
Taxes 13
Other operating income includes income from fees for services rendered to Deutsche
Beteiligungsgesellschaft mbH & Co. Fonds I KG and Deutsche Beteiligungsgesellschaft
Fond III GmbH as well as consultancy fees.
In 2002/2003, income from management activity in conjunction with the new DBAG
Fund IV co-investment fund was recorded for the first time. For a better overview, this
income was recognized in “Other operating income.”
This position also includes write-ups on the book value of investments and loans to
companies in which shares are held totaling T€ 6,101 and income of a non-periodic
nature amounting to T€ 188 (previous year: T€ 302).
in T€ 2002/2003 2001/2002
Wages and salaries 5,841 5,922
Social security costs, pensions and support 1,711 1,649
(thereof, for pensions) (1,167) (1,163)
Other operating expenses include consultancy and audit costs as well as costs for the
annual financial statements and the Annual Meeting. This item also contains nondeductible
taxes, expenses resulting from litigation and other expenses from current
operations. In the 2002/2003 financial year, "Other operating expenses" also include
costs for the placement of the new DBAG Fund IV.
Net income taxes largely result from positive taxable income.
G. Other information
7,552 7,571
in T€ 2002/2003 2001/2002
Other interest and similar income 366 407
Interest and similar expenses –3,630 –5,899
–3,264 –5,492
in T€ 2002/2003 2001/2002
Income taxes 1,286 –88
Other taxes 4 23
1,290 –65
At October 31, 2003, other financial commitments amounted to T€ 71,629 for payments
which may be called for by international investment funds, depending on the
progress of the investing activity. The remaining other financial commitments totaled
T€ 6,705 and represent long-term contractual obligations.

Deutsche Beteiligungs AG · Annual Report 2002/2003
Notes to the Consolidated Financial Statements 2002/2003
in T€ Oct. 31, 2003 Oct. 31, 2002
Liabilities from guarantees 511 3,677
Other contingent liabilities 56,654 59,240
The Group holds interests in excess of five percent of the voting shares in the following
large corporations:
Bauer AG, Schrobenhausen; DS Technologie Holding GmbH, Mönchengladbach;
Grohmann Engineering GmbH, Prüm; Lignum Technologie AG, Schopfloch;
schlott gruppe AG, Freudenstadt; Zapf GmbH, Bayreuth
The members of the Board of Management of Deutsche Beteiligungs AG receive fixed
and variable salary components determined on a yearly basis. The variable components
constitute a profit-sharing plan, a bonus system, and a stock option program. Pension
commitments have been made to individual Board members.
The profit-sharing plan is linked to the annual performance of investments to which
the Company had committed up to December 31, 2000. The profit share is determined
on the basis of the extent to which the return on equity exceeds 15 percent. In determining
the profit share, the equity only relates to those investments that are included in
the profit-sharing plan.
The bonus system allows Board members to participate in the performance of the fund
management activities of Deutsche Beteiligungs AG. It is based on the result of management
activity determined in accordance with operational criteria.
Within the scope of the stock option program, 70,000 stock options have been granted
annually to the members of the Board of Management since 2001. One stock option
represents an entitlement for the purchase of one share of Deutsche Beteiligungs AG. The
options are exercisable not earlier than three years and expire after a maximum period
of five years after the date of grant. An appreciation is only achieved, if the performance
of the shares of Deutsche Beteiligungs AG (including dividend payments) exceeds that
of the S-Dax. The program expires on March 24, 2006.
Emoluments to the Board of Management totaled T€ 1,680 for the reporting year.
The emoluments include performance-related payments totaling € 240,000. The
emoluments do not contain payments from programs based on long-term incentives.
The sum of T€ 354 was paid to surviving dependents and former members of the Board
of Management. Pension provisions of T€ 6,732 have been made for former members
of the Board of Management.
To date, the following stock options have been granted to members of the Board of
Management:
Date of grant Number Reference Value of reference
of stock options price index S-Dax
granted € €
April 11, 2001 70,000 31.39 2,926.74
April 16, 2002 70,000 20.27 2,456.50
April 11, 2003 70,000 6.72 1,742.84
Total at Oct. 31, 2003 210,000
57,165 62,917
Contingent liabilities
83

84
Members of the Board of Management held 484 shares of Deutsche Beteiligungs AG;
no shares were held by members of the Supervisory Board.
Fixed emoluments for members of the Supervisory Board totaled approximately T€ 39
in financial year 2002/2003. Since no dividends were disbursed, variable emoluments
were not paid this year. Prof. Dr. h.c. Rolf-Dieter Leister received emoluments totaling
T€ 137 (net) through INFRA BERATUNG GmbH for consultancy services. Fees of approximately
T€ 25 (net) for consultancy services were paid to White & Case, Feddersen.
The Company employed an average of 48 employees and three apprentices in financial
year 2002/2003.
A selected group of employees received the same number of stock options as did the
members of the Board of Management for the purchase of one share each of the stock
of Deutsche Beteiligungs AG. These options may be exercised under the same terms as
those granted to the Board of Management. In individual cases, there may be immaterial
deviations due to slightly differing dates of grant.
The list of investments held will be filed separately with the Court of Registration in
Frankfurt am Main. We made use of the option of not disclosing the equity and net
income for the past financial year, as provided for by Article 313, section 3, No. 1 of the
German Commercial Code.
The consolidated financial statements at October 31, 2003 will be filed with the
Commercial Register at the District Court in Frankfurt am Main (HR B 52491).
A “Declaration of Conformity” in accordance with Article 161 of the German Stock
Corporation Act (AktG) was submitted by Deutsche Beteiligungs AG and is permanently
accessible to shareholders at the Company’s internet site.
Segment reporting
The private equity operations of Deutsche Beteiligungs AG are conducted on a global
basis, i.e. without differentiating between segments, for instance, geographical or
industrial segments. Segment information is therefore not reportable.
Frankfurt am Main, December 1, 2003
The Board of Management
Wilken Freiherr von Hodenberg Torsten Grede
Helmut Irle Reinhard Löffler

AUDITORS’ REPORT
We have audited the consolidated financial statements and the group management
report prepared by the Company Deutsche Beteiligungs AG for the business year from
1 November 2002 to 31 October 2003. The preparation of the consolidated financial
statements and the group management report in accordance with German commercial
law are the responsibility of the company's management. Our responsibility is to express
an opinion on the consolidated financial statements and the group management report
based on our audit.
We conducted our audit of the consolidated annual financial statements in accordance
with § 317 HGB (“Handelsgesetzbuch” – German Commercial Code) and the
German generally accepted standards for the audit of financial statements promulgated
by the Institut der Wirtschaftsprüfer in Deutschland (IDW). Those standards require that
we plan and perform the audit such that misstatements materially affecting the presentation
of the net assets, financial position and results of operations in the consolidated
financial statements in accordance with German principles of proper accounting and in
the group management report are detected with reasonable assurance. Knowledge of
the business activities and the economic and legal environment of the group and evaluations
of possible misstatements are taken into account in the determination of audit
procedures. The effectiveness of the accounting-related internal control system and the
evidence supporting the disclosures in the consolidated financial statements and the
group management report are examined primarily on a test basis within the framework
of the audit. The audit includes assessing the annual financial statements of the companies
included in consolidation, the determination of the companies to be included in
consolidation, the accounting and consolidation principles used and significant estimates
made by management, as well as evaluating the overall presentation of the
consolidated financial statements and the group management report. We believe that
our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, the consolidated financial statements give a true and fair view of the
net assets, financial position and results of operations of the Group in accordance with
German principles of proper accounting. On the whole, the group management report
provides a suitable understanding of the Group's position and suitably presents the risks
of future development.
Frankfurt am Main, December 19, 2003
KPMG Deutsche Treuhand-Gesellschaft
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
(Bose) (Janus)
Wirtschaftsprüfer Wirtschaftsprüfer
(German Public Auditor) (German Public Auditor)
Deutsche Beteiligungs AG · Annual Report 2002/2003
Auditors’ Report
85

86
REPORT OF THE SUPERVISORY BOARD
In financial year 2002/2003, the Supervisory Board regularly fulfilled the assignments
and responsibilities imposed by law and by the Articles of Association and monitored the
Company’s position and progress. The Supervisory Board supported the Board of Management
in an advisory capacity concerning its intended business policy and other fundamental
issues regarding the future conduct of the Company’s business, and oversaw
the management of the Company’s business. The Supervisory Board was kept informed,
both verbally and in writing, about significant business transactions.
In six meetings, the Supervisory Board extensively dealt with the Company’s position,
with completed and proposed investments and sales, the annual financial statements,
the monitoring of existing investments, personnel issues relating to the Board of Management,
and the Board of Management’s risk management and surveillance system.
The Supervisory Board reviewed significant business transactions and made decisions on
transactions requiring its endorsement.
The Supervisory Board directed particular attention to the furtherance of corporate
governance practices and actively participated in developing the Declaration of Conformity
to the German Corporate Governance Code. In some instances, the Board changed
its rules of procedure to meet the recommendations and suggestions of the Code.
Between regular meetings, the Chairman of the Supervisory Board maintained close
contact with the Board of Management concerning the Company’s business development
and specific portfolio companies. The Supervisory Board received reports on these issues
(item 5.2 of the German Corporate Governance Code).
The Executive Committee, consisting of the Chairman and the Vice Chairman of the
Supervisory Board and Dr. Binder, convened four times this past financial year. The Chairman
of the Supervisory Board has the chair on the Executive Committee. This Committee
is a consultant to the Supervisory Board on personnel issues regarding the Board of
Management; it is responsible for employment contracts of the members of the Board
of Management and amendments to such contracts.
In addition to the Executive Committee, the Supervisory Board had resolved to form
an Audit Committee. The Audit Committee consists of six members of the Supervisory
Board; a minimum of three members forms a quorum. Prof. Rolf-Dieter Leister has the
chair. The Audit Committee, in particular, dealt with issues concerning the accounting
and the risk management, the required independence of the auditors, the commissioning
of the audit assignment to the auditors, the determination of focal points of the audit
and audit fees. The Audit Committee had no objections to raise to the Company’s current
practice.
In financial year 2002/2003, the Supervisory Board developed methods to evaluate its
own work and has implemented these methods for the first time beginning this current
financial year (item 5.6 of the Code). The remuneration of the Supervisory Board members,
which, in addition to fixed emoluments, is linked to dividends paid, is planned to
be converted to a new system (item 5.4.5 of the Code); a recommendation will be presented
to shareholders at the 2004 Annual Meeting.

The financial statements of Deutsche Beteiligungs AG for financial year 2002/2003
and management’s report were audited and endorsed with an unqualified certificate by
KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprüfungsgesellschaft,
Frankfurt am Main, who were appointed as auditors at the previous Annual Meeting.
The same applies to the consolidated financial statements for financial year 2002/2003.
In his report, the auditor also discussed the Board of Management’s risk management
and surveillance system and found it suitable for early identification of developments
that may endanger the Company’s existence.
Helmut Irle will be leaving the Board of Management of Deutsche Beteiligungs AG
on the best of terms and by mutual agreement at the end of January 2004. The Supervisory
Board extends its thanks to Mr. Irle for his valuable contributions. Joining the
Board of Management are the Company's long-standing staff members and Senior Vice
Presidents André Mangin and Dr. Rolf Scheffels, who the Supervisory Board appointed
effective January 1, 2004. Commencing February 1, 2004, the Board of Management of
Deutsche Beteiligungs AG will thus consist of Wilken Freiherr von Hodenberg (Spokesman),
Torsten Grede, Reinhard Löffler, André Mangin, and Dr. Rolf Scheffels.
With the Board of Management and in the presence of the auditors, the Supervisory
Board reviewed in detail the financial statements at October 31, 2003, management’s
report on Deutsche Beteiligungs AG, the consolidated financial statements and the Group
management report, as well as the recommendation for the appropriation of profits.
The auditors reported on the results of their audit in general and on specific focal points
of their audit and provided in-depth information to inquiries by the members of the
Supervisory Board. There were no objections raised. The Supervisory Board approved
the financial statements of Deutsche Beteiligungs AG and the consolidated financial
statements of the Group in its meeting on January 23, 2004, which are thus adopted.
The Supervisory Board approved the recommendation for the appropriation of profits.
The Supervisory Board wishes to thank to the Board of Management and the entire
staff of Deutsche Beteiligungs AG in recognition of their performance and commitment
in the past financial year.
Frankfurt am Main, January 23, 2004
The Supervisory Board
Prof. Dr. Dieter Feddersen
Chairman
Deutsche Beteiligungs AG · Annual Report 2002/2003
Report of the Supervisory Board
87

88
DECLARATION OF CONFORMITY PURSUANT
TO ARTICLE 161 OF THE GERMAN STOCK
CORPORATION ACT
The Board of Management and the Supervisory Board declare that Deutsche Beteiligungs
AG will principally comply with the recommendations issued by the Government
Commission on the German Corporate Governance Code as amended on May 21, 2003.
For the period between the last Declaration of Conformity dated December 18, 2002
and today, we have also principally complied with the recommendations of the Corporate
Governance Code issued November 7, 2002.
The following constitutes the deviations:
• For members of the Board of Management and the Supervisory Board, D&O insurance
did not and currently does not provide for a deductible (item 3.8 of the Code).
Standards concerning the amount and application of a deductible have still not been
developed. We will come back to this issue as soon as trends in that direction are
perceptible.
• We will not follow the recommendation of publishing the emoluments of members
of the Board of Management on an individualized basis (item 4.2.4 of the Code).
Deutsche Beteiligungs AG gives priority to individual Board members’ right to data
privacy. The Code had previously classified this recommendation as a suggestion,
which we had chosen not to follow for the reasons stated.
• The Code recommends that the remuneration of Supervisory Board members accounts
for service on Board committees (item 5.4.5 of the Code). We currently do not follow
this recommendation and did not follow it in the past, since this would necessitate a
change to the company’s Supervisory Board remuneration structure. However, we will
present a resolution to that effect at the next Annual Meeting of Shareholders. That
will create transparency in the remuneration paid to Supervisory Board members; however,
similar to the policy for Management Board members, a separate listing of individualized
remuneration will not be published in the Annual Report.
• For the time being, we will continue to base our accounting on the principles of the
German Commercial Code and not present financial statements in conformity with
international accounting standards (item 7.1.1 of the Code), which we had also not
done in the past. The special principles of the International Financial Reporting Standards
(IFRS) that apply to us as a so-called investment company have not yet been
adopted at the time this Declaration was issued in November 2003. We seek to avoid
drawing up our financial statements on a provisional basis. In anticipation of the
transition to the IFRS, we do, however, report portfolio valuations determined in conformity
with valid IFRS fair-value principles, thereby presenting the relevant information
to our shareholders as would be disclosed by IFRS-formatted accounting. This
was also our policy in the past.
• We endeavor to comply with the recommendation of presenting the annual financial
statements within 90 days of the close of a financial year (item 7.1.2 of the Code),
beginning with the financial statements for financial year 2002/2003. The annual
financial statements for 2001/2002 were not presented within this period of time; they
were, however, publicly accessible on the 99th day. The interim report at April 30, 2003
was the first to be accessible within the required period of 45 days. We will target
this availability for future interim reports as well.

Deutsche Beteiligungs AG · Annual Report 2002/2003
Declaration of Conformity to German Governance Code
• We will only conditionally comply with the recommendation of publishing a list of
third-party companies in which Deutsche Beteiligungs AG holds a material interest
(item 7.1.4 of the Code). This recommendation concerns the core of our business.
Frequently, confidentiality is a contractual stipulation with our business partners. Beyond
that, issuing the required information may, in certain instances, be detrimental to our
portfolio companies. Our compliance with this recommendation was subject to these
reservations in the past.
As in the past, we will, for the most part, comply with the Commission’s suggestions.
The following constitutes an exception:
• Electing all members of the Supervisory Board at one date has proved to be good
practice. This serves the continuity of Supervisory Board members‘ work. We will
therefore not follow the suggestion of scheduling elections at various dates (item
5.4.4 of the Code).
Frankfurt am Main, November 25, 2003
89

90
INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES
AT OCT. 31, 2003 IN ACCORDANCE WITH ART. 131,
SECTION 4, GERMAN COMMERCIAL CODE
Subsidiaries
Name and domicile Equity share
of company in %
• DBG Auslandsbeteiligungen GmbH & Co. KG, Frankfurt am Main 100.00*
– Deutsche Beteiligungsgesellschaft mbH, Königstein/Taunus 100.00*
• DBG Beteiligungsgesellschaft mbH, Frankfurt am Main 100.00
• DBV Drehbogen GmbH, Frankfurt am Main 100.00
• Duodecima Beteiligungs GmbH, Frankfurt am Main 100.00
• DBG Second Equity Team GmbH & Co. KGaA, Frankfurt am Main 100.00
• DBG Third Equity Team GmbH & Co. KGaA, Frankfurt am Main 100.00
• DBG Fourth Equity International GmbH, Frankfurt am Main 100.00
• DBG Fifth Equity International GmbH, Frankfurt am Main 100.00*
– DBG Advisors GmbH & Co. KG, Frankfurt am Main 33.33*
• DBG Fourth Equity Team GmbH & Co. KGaA 1.00*
• DBG Fifth Equity Team GmbH & Co. KGaA 100.00
• DBG Epsilon GmbH, Frankfurt am Main 100.00
• DBG Lambda GmbH, Frankfurt am Main 100.00
• DBG Zeta GmbH, Frankfurt am Main 100.00
• UI Beteiligungs GmbH, Frankfurt am Main 100.00
• DBG Eastern Europe Management Ltd., St. Helier, Jersey 50.01
• DBG UK Management Ltd., London, Great Britain 100.00
• DBG Development Capital Eastern Europe Ltd., St. Helier, Jersey 100.00
• DBG Management GmbH & Co. KG, Frankfurt am Main 100.00*
• Undecima Beteiligungs GmbH 100.00*
– DBG Fourth Equity Team GmbH & Co. KGaA 99.00*
• DBG Kappa GmbH 100.00
– DBG Theta GmbH 100.00
• DBG Jota GmbH 98.80
• Gizeh Verpackungen Beteiligungs-GmbH, Bergneustadt 99.67
* fully consolidated
Investments in companies in which voting shares of 20 % to 50 % are held
Name and domicile Equity share
of company in %
• Bauer AG, Schrobenhausen 41.15
• Bowa Beteiligungsgesellschaft mbH & Co. KG, Bielefeld 49.00
• Bowa Geschäftsführungs GmbH, Bielefeld 49.00
• HT Engineering GmbH 32.62
• DS Technologie Holding GmbH, Mönchengladbach 39.62
• EUVITA Holding GmbH & Co. KG, Ehrenkirchen 49.30
• EUVITA Holding Verwaltungs GmbH, Ehrenkirchen 49.20
• Grohmann Engineering GmbH, Prüm 25.10
• Hörmann GmbH & Co. Beteiligungs KG, Kirchseeon 28.00
• Lignum Technologie AG, Schopfloch 21.37
• Q.P.O.N. Beteiligungs GmbH 50.00*
• Quartus Gestion S.A., Paris, France 35.00
• RQPO Beteiligungs GmbH, Frankfurt am Main 49.00
• RQPO Beteiligungs GmbH & Co. Papier KG, Frankfurt am Main 44.10
• Zapf GmbH, Bayreuth 44.64
* proportionately consolidated
Deutsche Beteiligungs AG · Annual Report 2002/2003
Investments in subsidiaries and associates at Oct. 31, 2003
in accordance with Art. 131, section 4, German Commercial Code

Statutory offices
Comparable offices in
Germany and internationally
Statutory offices
Comparable offices in
Germany and internationally
Statutory offices
Comparable offices in
Germany and internationally
Comparable offices in
Germany and internationally
Deutsche Beteiligungs AG · Annual Report 2002/2003
Members of the Supervisory Board and Board of Management
MEMBERS OF THE SUPERVISORY BOARD
AND BOARD OF MANAGEMENT
Supervisory Board
Prof. Dr. Dieter Feddersen, Kronberg (Chairman)
Attorney
Drägerwerk AG, Lübeck (Chairman)
SAI Automotive AG, Frankfurt am Main (Chairman)*
Sauerborn Trust AG, Bad Homburg (Vice Chairman)
Tarkett Sommer AG, Frankenthal (Chairman)
Gesellschaft für Industriebeteiligungen Dr. Joachim Schmidt AG & Co. Holding KG,
Berlin (Chairman)
Karl Munte Bauunternehmung GmbH & Co. KG, Braunschweig (Chairman)
Deutsche Beteiligungsgesellschaft Fonds III GmbH, Frankfurt am Main (Chairman)
Prof. Dr. h.c. Rolf-Dieter Leister, Luzern (Vice Chairman)
Economic Advisor
Berlinwasser Holding AG, Berlin (Chairman)
BÖWE Systec AG, Augsburg
DaimlerChrysler Services (debis) AG, Berlin
Loewe AG, Kronach
Südwestdeutsche Medien Holding GmbH, Stuttgart
Deutsche Beteiligungsgesellschaft Fonds III GmbH, Frankfurt am Main
(Vice Chairman)
Dr. Hans-Peter Binder, Berg
Former Managing Director of Deutsche Bank AG
Dierig Holding AG, Augsburg (Chairman)
Faber-Castell AG, Stein/Nuremberg (Vice Chairman)
Knorr-Bremse AG, Munich (Chairman)
Knorr-Bremse Systeme für Nutzfahrzeuge GmbH, Munich
Osram GmbH, Munich (until January 27, 2003)
Saint-Gobain Oberland AG, Bad Wurzach
SCA Hygiene Products AG, Munich
A.W. Faber-Castell Unternehmensverwaltung GmbH & Co., Stein/Nuremberg
Deutsche Beteiligungsgesellschaft Fonds III GmbH, Frankfurt am Main
Eberhard Buschmann, Munich
Spokesman of the Board of Management of Wilhelm von Finck AG
Deutsche Beteiligungsgesellschaft Fonds III GmbH, Frankfurt am Main
*This office comes under the transitional provision of Art, 12 EGAktG (German Introductory Law to Stock Corporation Act).
Statutory offices: offices held on other statutory supervisory boards.
Comparable offices in Germany and internationally: offices held on comparable domestic and international supervisory bodies
of commercial enterprises, at October 31, 2002, respectively.
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Statutory offices
Comparable offices in
Germany and internationally
Comparable offices in
Germany and internationally
Statutory offices
Comparable offices in
Germany and internationally
Statutory offices
Comparable offices in
Germany and internationally
Dr. Fritz Lehnen, Ratingen (as of March 27, 2003)
Member of the Board of Management of mg technologies AG (until October 2, 2003)
Dynamit Nobel AG, Troisdorf (until October 31, 2003)
GEA AG, Bochum (Chairman, until November 3, 2003)
Lurgi AG, Frankfurt am Main (Chairman, until November 7, 2003)
Lurgi Lentjes AG, Düsseldorf (until October 31, 2003)
Polyamid 2000 AG, Premnitz (until October 30, 2003)
Vaillant GmbH, Remscheid (as of May 10, 2003)
Zimmer AG, Frankfurt am Main (Chairman, until November 3, 2003)
Deutsche Beteiligungsgesellschaft Fonds III GmbH, Frankfurt am Main
(as of March 27, 2003)
Walter Schmidt, Kaarst (as of March 27, 2003)
Managing Director of Gerling Gesellschaft für Vermögens-Management mbH and of
GERLING INVESTMENT Kapitalanlage GmbH
Deutsche Beteiligungsgesellschaft Fonds III GmbH, Frankfurt am Main
(as of March 27, 2003)
Stefan L. Volk, Cologne (as of March 27, 2003)
Former member of the Board of Management of Gerling Versicherungs-Beteiligungs AG
(until November 15, 2002)
SINEUS AG, Hamburg (Chairman, until November 21, 2002)
Deutsche Beteiligungsgesellschaft Fonds III GmbH, Frankfurt am Main
(until March 27, 2003)
Prof. Dr. Hans-Jürgen Warnecke, Weil der Stadt (until March 27, 2003)
Former President of Fraunhofer-Gesellschaft (until September 30, 2002)
Deutz AG, Cologne
Dynamit Nobel AG, Troisdorf
Howaldtswerke-Deutsche Werft AG, Kiel (until July 30, 2003)
Jenoptik AG, Jena
Microlog Logistics AG, Lorsch (until May 31, 2003)
MAN Roland AG, Offenbach (until May 31, 2003)
Mahle GmbH, Stuttgart
Wanderer-Werke AG, Augsburg
Rohde & Schwarz Meßgerätebau GmbH, Memmingen
Deutsche Beteiligungsgesellschaft Fonds III GmbH, Frankfurt am Main
(until March 27, 2003)

Statutory offices
Comparable offices in
Germany and internationally
Comparable offices in
Germany and internationally
Statutory offices
Comparable offices in
Germany and internationally
Statutory offices
Deutsche Beteiligungs AG · Annual Report 2002/2003
Members of the Supervisory Board and Board of Management
Board of Management
Wilken Freiherr von Hodenberg, Königstein/Taunus (Spokesman)
Edscha AG, Remscheid (until February 14, 2003)
Unternehmens Invest AG, Vienna (Chairman)
UNIVEST AG, Vienna (Chairman)
Giga-Stream GmbH, Saarbrücken
JCK Holding GmbH Textil KG, Quakenbrück
Quartus Gestion S.A., Paris
DBG Osteuropa-Holding GmbH, Frankfurt am Main (Chairman)
Torsten Grede, Frankfurt am Main
Hochtemperatur Engineering GmbH, Mainz-Kastel (as of December 16, 2002, Chairman)
Grohmann Engineering GmbH, Prüm
Otto Sauer Achsenfabrik Keilberg, Bessenbach-Keilberg (Vice Chairman)
Helmut Irle, Unterhaching
Bauer AG, Schrobenhausen (Vice Chairman)
AKsys Beteiligungs GmbH, Worms (as of April 30, 2003, Chairman)
Faist Automotive GmbH & Co. KG, Krumbach (until November 14, 2002, Vice Chairman)
Hörmann GmbH & Co. Beteiligungs KG, Kirchseeon (Vice Chairman)
Zapf GmbH, Bayreuth (Chairman)
Reinhard Löffler, Weil der Stadt
Hucke AG, Lübbecke
Lignum Technologie AG, Schopfloch
MHM Modeholding AG, Düsseldorf (until April 29, 2003, Vice Chairman)
schlott gruppe AG, Freudenstadt
transtec AG, Tübingen (Vice Chairman)
Victorvox AG, Krefeld (Vice Chairman)
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Buy-and-build
Carried interest
Cash flow
Closing
Co-investment
Corporate Governance
D&O insurance
Designated sponsor
Due diligence
EBIT
Equity
Exit
Fair disclosure
Fair value
Free float
Fund of funds
General Standard
IFRS
Investor Relations
Lead investor
Lock-up period
M&A market
Market capitalization
GLOSSARY
Concept by which a new company is built, often in a fragmented market: an existing
business serves as the platform and is complemented by add-on acquisitions to form a
significantly larger entity.
Profit-sharing for investment managers linked to the performance of investments. This is
usually subject to a minimum return target and is only paid at a fixed ratio upon
exceeding that performance target.
Indicator used to measure a company’s financial and earnings position.
End of subscription period for a (private equity) fund.
Investment in a business by several investors, one of whom acts as the lead investor.
Standards for the management and supervision of companies defining the spheres of
accountability for Shareholders, Management Boards and Supervisory Boards of public
companies. These standards aim at early identification of undesirable developments and
the prevention of critical situations in a company.
Directors and Officers’ Liability Insurance; an insurance for members of the Supervisory
Board and Board of Management of legal entities covering legal liabilities for wrongful
acts committed in their capacities as Management and Supervisory Board members.
Designated sponsors ensure a minimum amount of liquidity of a certain stock in Xetra
trading by offering binding quotes for the purchase and sale of that stock.
An analysis of the earnings position and business situation as well as recent financial
statements by which an investor wishes to obtain background information on a target
company in order to arrive at an informed purchase decision.
Abbreviation for earnings before interest and taxes. EBIT is an earnings indicator, determined
from the net income before taxes, the net interest and extraordinary earnings.
Eliminating these factors provides a more comparable statement on a company’s operative
performance, independent of its individual equity structure.
The residual interest in the assets of a company after deducting all its liabilities.
The sale of an investment from an investor’s portfolio by either a trade sale, an initial
public offering (IPO) or a secondary buyout.
Simultaneously communicating corporate information to all market participants required
to assess a certain stock.
Valuation reserves per share plus the equity per share.
The sum of all shares of a company not held in firm hands, or, in other words, the marketable
portion of a company’s stock.
Investment funds that invest in other funds.
Segment governed by the statutory minimum requirements of the Official or Regulated
Unofficial Market.
Accounting standards that will be obligatory for quoted companies in the European
Union. The IFRS (International Financial Reporting Standards) are the European offshoot
of the IAS (International Accounting Standards).
Activities directed toward promoting relationships between a company and its existing
or potential investors.
In a syndicate of investment companies generally the investor holding the largest share,
who takes charge of organizing the financing and coordinating the transaction. In a
fund investment, the investor holding the largest interest.
Period of time during which existing shareholders commit not to sell shares from their
holdings following an IPO. This is aimed at protecting new shareholders from
downslides in stock prices caused by the sale of large blocks of shares after a new issue.
Mergers & Acquisitions; market for negotiating businesses or shares of businesses to
buyers and sellers.
Current stock market value of a class of shares: number of issued shares multiplied by
the current price.

MBO
Multiples method
Official Market
Parallel fund
Peer group
Portfolio
Prime Standard
Private equity
Public to private
Regulated Unofficial Market
Return on equity
S-Dax performance index
Secondary buyout
Silent partnership
Spin-off
Stock option
Track record
Trade sale
Turn-around
Valuation reserves
Venture capital
Xetra
Deutsche Beteiligungs AG · Annual Report 2002/2003
Glossary
Management buyout; the takeover of a company by managers presently employed by
that company.
A procedure used to measure the enterprise value; determined by multiplying a relevant
performance indicator (e.g. earnings) by a multiple derived from current market prices.
This multiple is determined from the quotient of a peer group and its respective performance
indicators.
(Amtlicher Markt) Primary tier of the German Stock Exchange that sets high standards
for admittance.
Also: co-investment fund. A third-party fund that co-invests (usually by a fixed percentage)
alongside another investor; at Deutsche Beteiligungs AG: the funds managed by
Deutsche Beteiligungs AG
A group of companies similar in terms of industrial sector, structure, products, and sales,
used for comparison purposes.
All the holdings of an investment company.
Segment on the German Stock Exchange with high standards of transparency. Admission
to the Prime Standard is a prerequisite for inclusion in one of the stock indices, such as
the S-Dax.
Capital provided to non-quoted companies for the mid to long-term.
Delisting of a formerly quoted company; also referred to as taking private.
(Geregelter Markt) Entry level of the German Stock Exchange with only few formal
admission standards.
Indicator used in assessing the business performance of a company; the profit delivered
to the owners is expressed as a percentage of the equity available at the beginning of a
financial year.
Selection index of the German Stock Exchange for smaller companies from classical
sectors of the economy. Comes after the stocks indexed in the M-Dax and consists of
50 stocks admitted to the Prime Standard of the Official Market or Regulated Unofficial
Market.
The investment company and MBO managers sell to the next generation of managers.
A silent partnership usually having a fixed term, fixed interest rate and defined performance-related
components; not subject to public disclosure.
The splitting off of a division or subsidiary from a large corporation.
A security granting the purchase of a company’s stock at a fixed price (or a price determined
on the basis of a certain scheme). At Deutsche Beteiligungs AG – similar to many
other quoted companies – a part of the staff’s emoluments.
A record of performance by a company or an entrepreneur or manager.
An exit variant: the sale of an investment to a company operating in the same branch
of industry that wants to complement its portfolio, expand its market presence or
achieve other strategic goals.
The restructuring of a business to achieve profitability again. In some cases, the business
will start off anew with a new management and/or a revised product range.
The difference between the book value in conformity with the German Commercial
Code (acquisition cost or lower) and the current market value.
Risk capital; mostly private capital provided to start-ups or emerging businesses.
Electronic market trading system.
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96
January 29, 2004
March 18, 2004
June 14, 2004
June 2004
September 14, 2004
December 2004
January 2005
Shareholder information
Status
Financial Calendar
Annual Press Conference
Analysts’ Conference Call
Annual Meeting 2004
Report on the First Quarter
Analysts’ Conference Call
Report on the Second Quarter/First Six Months
Analysts’ Conference Call
Analysts’ Conference
Report on the Third Quarter
Analysts’ Conference Call
German Mid Cap Conference
Annual Press Conference
Imprint
Annual Report 2002/2003
Published by the Board of Management of Deutsche Beteiligungs AG
Editing and coordination: Thomas Franke
Design and production: Golin/Harris B&L GmbH, Frankfurt am Main
English translation: Barbara Ziegner, Frankfurt am Main
Photography: Stefan Döberl, Darmstadt
Typography and lithography: Studio Oberländer, Frankfurt am Main
Printed by Frotscher Druck, Darmstadt
Deutsche Beteiligungs AG
Investor Relations and Public Relations
Kleine Wiesenau 1
D-60323 Frankfurt am Main
Telephone: + 49 (69) 9 57 87-307
Fax: + 49 (69) 9 57 87-391
E-Mail: IR@deutsche-beteiligung.de
Internet: www.deutsche-beteiligung.de
December 31, 2003
The Annual Report is published in German and in English. The German version of this
report is authoritative.
Forward-looking statements
This report contains forward-looking statements related to the prospects and progress of
Deutsche Beteiligungs AG. These statements are based on assumptions and information
currently available. Although we believe these forward-looking statements to be realistic,
there can be no guarantee. Our assumptions are subject to risks and uncertainties, and
actual results may vary materially. These include fluctuations on capital markets, in currency
exchange rates and interest rates, or principal changes in the business environment.
An up-date on these forward-looking statements is not planned.
© Deutsche Beteiligungs AG 2003
Printed on non-chlorine bleached paper.

FIVE-YEAR FINANCIAL SUMMARY
in millions of € 2002/03 2001/02 2000/01 1999/00 1 1998/99 1
Investment position
Investments 30 29 31 101 57
Portfolio volume 300 313 311 324 275
Investments (number) 43 49 49 50 47
Income position
EBIT 7.7 –10.4 9.2 46.1 45.5
Result of ordinary activity 4.4 –15.9 6.4 43.0 42.5
Net income/loss after taxes 3.1 –15.8 9.2 32.1 37.5
Earnings per share in € 0.22 –1.13 0.65 2.56 2 3.13
Dividends in € none 3 none 0.50 1.80 1.79
Financial position
Cash flow 4 13 11 20 43 39
Cash flow 4 per share in € 0.96 0.77 1.40 3.44 3.26
Depreciation and amortization 5 17 27 12 17 2
Working capital 6 –9 –6 –5 –3 18
Assets
Long-term assets 258 271 292 253 231
Current assets 34 36 38 40 53
thereof, liquid funds at Oct. 31 7 5 0 7 0 0
Equity 158 155 179 198 129
in % of total assets 54 51 54 68 45
Provisions 19 17 25 24 32
Liabilities 114 135 126 71 123
in % of total assets 39 44 38 24 43
Total assets 292 307 330 292 285
Return ratios
Return on equity 8 in % (before taxes) 2.8 n.a. 3.7 40.0 46.4
Return on equity 9 in % (after taxes) 2.0 n.a. 5.3 29.8 41.0
Return on total capital employed 10 in % 2.6 n.a. 2.8 16 16
Employees
Number of employees 50 51 50 50 49
Personnel costs 7.6 7.6 8.8 10 9
1 The information for the financial years of 1998/99 and 1999/2000 exclusively relates to Deutsche Beteiligungs AG, not to the Group
2 Weighted average number of shares outstanding
3 Recommended by Board of Management and Supervisory Board
4 Result of period plus write-downs/write-ups on long-term assets
5 Write-downs on investments and depreciation on fixed assets, amortization of intangible assets
6 Working capital (current assets less current liabilities and current provisions)
7 Securities and cash in bank
8 Return on equity: earnings before income taxes divided by equity less dividends at end of previous year
9 Return on equity: earnings after income taxes divided by equity less dividends at end of previous year
10 Return on total capital employed: equity earnings before income taxes plus interest divided by total assets

Deutsche Beteiligungs AG
Kleine Wiesenau 1
D-60323 Frankfurt am Main
Telephone: +49 (69) 9 57 87-01
Telefax: +49 (69) 9 57 87-199
www.deutsche-beteiligung.de
ISIN DE 0005508105
Registered office:
Frankfurt am Main
Incorporated in the Commercial Register
at the District Court in Frankfurt am Main
HRB No. B 52 491
For more information please contact
Thomas Franke
Investor Relations
1619-3423
IR@deutsche-beteiligung.de
Telephone: +49 (69) 9 57 87-307 ISSN
Deutsche Beteiligungs AG Annual Report 2002/2003