Publication of new forecast for the financial year 2019/2020

Deutsche Beteiligungs AG (“DBAG” – ISIN: DE000A1TNUT7 / German Securities ID: A1TNUT): Publication of new forecast for the financial year 2019/2020

Disclosure of inside information pursuant to Article 17 (1) of Regulation (EU) 596/2014 on Market Abuse

The outbreak of the corona crisis during the second quarter of the current financial year 2019/2020 has had a significant impact on the portfolio companies of Deutsche Beteiligungs AG. As a result, DBAG withdrew its forecast for the current financial year on 20 March 2020. Having analysed the impact on individual portfolio companies, DBAG has now formulated a new forecast on this basis.This forecast covers the material financial management indicators – specifically, the net asset value of Private Equity Investments, earnings from Fund Investment Services, as well as net income. As in the past, DBAG prepares a qualified comparative forecast on expected developments, applying unchanged categories (slight, moderate, significant) to the forecast.

Given that the further course of the corona crisis remains highly difficult to assess, the forecast is subject to an even higher degree of uncertainty than it would be otherwise. From today's perspective, risks outweigh opportunities.

Some of the reference points for forecasting indicators, as set out below, differ from those values usually applied by DBAG. Given the massive impact the corona crisis has had on certain indicators during the first half of the current financial year, reference points previously used are no longer viable. As always, the forecast is subject to the proviso that valuation levels on the capital markets will not have changed considerably by the end of a financial year, compared to those levels on which the reference points were based.

According to the forecast, net asset value as at 30 September 2020 is expected to be slightly (up to 10 per cent) lower than the figure as at 31 March 2020 (359.0 million euros, based on preliminary figures).

Earnings from Fund Investment Services are substantially determined by the volume of funds. Given that the M&A market has largely come to a standstill, DBAG currently no longer expects the DBAG Fund VIII to start investing during the current financial year, generating fees from advising this fund. Expenses for Fund Investment Services will be lower than most recently expected, mainly due to lower variable remuneration. Overall, DBAG continues to anticipate earnings from Fund Investment Services which are markedly (i.e. by more than 20 per cent) higher than the previous year's figure of 3.0 million euros. From today's perspective, this figure may rise by as much as 100 per cent year-on-year.

The factors influencing net asset value, as described above, tend to have the same impact on net income. The Company expects full-year net income to be negative, further slightly exceeding the net loss for the first half of the financial year (-76.7 million euros, based on preliminary figures). The interim financial statements as at 31 March 2020 (first half-year) will be published on 13 May 2020.

From today's perspective, DBAG’s dividend policy, which provides for a dividend that remains stable and increases whenever this is possible, remains unchanged in principle. The previous forecast, according to which the dividend would remain stable during the planning period until 2022, has been withdrawn. It is impossible at present to issue a new forecast on dividends for the current financial year.

The Board of Management
Frankfurt/Main, 5 May 2020

Issued by: Thomas Franke, Head of Public Relations and Investor Relations