Every day counts - Deutsche Beteiligungs AG

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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
Page 1 and 2: Annual Report 2002/2003 Every day c
Page 3 and 4: Deutsche Beteiligungs AG · Annual
Page 7 and 8: Wilken Freiherr von Hodenberg born
Page 9 and 10: Changes to the Board of Management
Page 11 and 12: November 1, 2002 to December 31, 20
Page 13 and 14: Shares of Deutsche Beteiligungs AG:
Page 15 and 16: Weak dollar curtails valuation rese
Page 17 and 18: Pro-active investor relations Deuts
Page 19 and 20: Prospects for our shares Capital ma
Page 21 and 22: For instance, the special accountin
Page 23 and 24: DEUTSCHE BETEILIGUNGS AG - MARKET P
Page 25 and 26: This performance is founded on six
Page 27 and 28: We build on an established network
Page 29 and 30: Platform for growth - Opportunities
Page 31: OUR PORTFOLIO - GOOD CROSS SECTION
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Page 45 and 46: Hochtemperatur Engineering GmbH Mai
Page 47 and 48: EXPANSION FINANCING - REACHING FOR
Page 49 and 50: Bauer AG Schrobenhausen Deutsche Be
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Page 55 and 56: INTERNATIONAL BUYOUT FUNDS - BALANC
Page 57 and 58: Accessing opportunities in eastern
Page 59 and 60: Unternehmens Invest AG Vienna Deuts
Page 61 and 62: PORTFOLIO - BALANCED ACROSS INDUSTR
Page 63 and 64: Industrial profile of portfolio bal
Page 65 and 66: MANAGEMENT’S REPORT I. Market dev
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Page 69 and 70: IV. 5. Appropriation of the distrib
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Page 81 and 82: D. Accounting policies Deutsche Bet
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Deutsche Beteiligungs AG · Annual
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AUDITORS’ REPORT We have audited
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The financial statements of Deutsch
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Statutory offices Comparable office
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Statutory offices Comparable office
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MBO Multiples method Official Marke
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FIVE-YEAR FINANCIAL SUMMARY in mill
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Every day counts - Deutsche Beteiligungs AG

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