Every day counts - Deutsche Beteiligungs AG

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.