Deutsche Beteiligungs : Corporate presentation, May 2024

German Spring Conference, Frankfurt/Main, 13-15 May 2024

DBAG Corporate Presentation

Disclaimer

This presentation contains forward-looking statements. Forward-looking statements are statements that do not describe facts or past events; they also include statements about our assumptions and expectations.

Any statement in this report that states our intentions, assumptions, expectations or predictions and the underlying assumptions is a forward-looking statement. These statements are based on plans, estimates and projections currently available to the Board of Management of Deutsche Beteiligungs AG. Therefore, forward-looking statements only relate to the date on which they are made. We do not assume any obligation to update such statements in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. A number of important factors may cause actual events to differ significantly from those in forward-looking statements. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere - the key regions for our investment activities.

Deutsche Beteiligungs AG is not and will not be registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act") and, as such, holders of the securities of Deutsche Beteiligungs AG will not be entitled to the protections of the Investment Company Act. There are restrictions on the sale and resale of securities of Deutsche Beteiligungs AG to, and the holding of securities by, persons in the United States or who are "U.S. persons" as defined in Regulation S under the U.S. Securities Act of 1933 (as amended, the "Securities Act") ("U.S.

Persons"). Issuances and sales of Deutsche Beteiligungs AG's securities may not be made to any U.S. Person or to any person or address in the United

States, except to "qualified purchasers" ("QPs") (as defined in Section 2(a)(51)(A) of the Investment Company Act) acting for their own account or for the account of one or more other QPs. Direct or indirect beneficial ownership of securities of Deutsche Beteiligungs AG by any person in the United States or a U.S. Person who is not a QP is prohibited.

This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the Securities Act or an exemption from registration. The securities described in this presentation have not been and will not be registered under the Securities Act. There will be no public offering of these securities in the United States.

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B u s i n e s s m o d e l a n d m a r k e t

DBAG´s business model

Value enhancing investment strategies in private markets

with focus on family owned businesses, enabling sustainable developments

Private Markets

Fund Investment

InvestmentsServices

Co-invest

alongside funds

Invest

independently

DBAG funds

Initiate, structure and provide advice for closed-end funds

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I n t e g r a t i o n o f E L F C a pi t a l G ro u p

New strategic partnership - DBAG x ELF capital the Mittelstand Investment Platform

P R I V A T E E Q U I T Y P L A T F O R M

		S m a l l -				M i d -				L o n g -
		C a p				C a p				Te r m
›				›				›
Small-cap MBOs in	Mid-cap MBOs in	Exclusively DBAG
	DACH via DBAG		DACH and Italy via		own balance sheet
›	ECF vintages	›	DBAG Fund VIII	›	investments
Focus on family	Focus on family	Growth financings
	successions and		successions and		in DACH looking
›	buy-and-build	›	carve-outs		for a >7 years
Equity investments	Equity investments	›	partnership
	between €10-40m		between €60-220m	Equity investments

of €15-35m typically via minority stakes

F u l l r a n g e o f e q u i t y s o l u t i o n s f o r

M i t t e l s t a n d c o m p a n i e s

C R E D I T P L A T F O R M

		D i r e c t				C a p i t a l
		L e n d i n g				S o l u t i o n s
›				›
Credit investments	Flexible Senior
	in Northern Europe,		(Secured Credit)
›	focus on DACH		creating alpha via
Senior Secured	›	complexity
›	Loans	Focus on primary
Preference for		transactions,
	growing platforms		selectively
	with opportunity to		secondary
	provide additional		opportunities
	capital (€10-50m)		(€10-50m)

D e b t ( - l i k e ) i n v e s t m e n t s w i t h d o w n s i d e p r o t e c t i o n

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B u s i n e s s m o d e l a n d m a r k e t

Private equity: Long-term, structurally growing market

Number of MBOs and transaction volume1 (mid-market segment, €50-250mn)

										62
											6.6
								51
							47
								5.4		43
			34	35	4.8	34	34
	31	30			4.4
											4.1
									4.0
	23								3.9
				3.6
	3.2
			2.7
	2.3

Number of investment opportunities			Highest
by quarter2											number
													since 9
													quarters
			214								334 (+56%yoy)
													78
72														2
					69			66
									3		61
									4
18											60
						51			5	5
47
44		3
	1
			3									76
						66			62
54											56	55
					48
46	41

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023	Jan-	Apr-	Jul-	Oct-	Jan-	Apr-	Jul-	Oct-	Jan-
			Mar	Jun 2022 Sep 2022 Dec 2022	Mar	Jun 2023 Sep 2023 Dec 2023	Mar
		Number of transactions	2022				2023				2024

Total transaction value (€bn)		Long-Term Investments
		MBOs

1. Majority takeovers in the context of MBOs, MBIs, secondary/tertiary buyouts involving a financial investor in Germany; sources: FINANCE, DBAG
2. Source: DBAG

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B u s i n e s s m o d e l a n d m a r k e t

Private debt: Attractive market opportunity

Growing and still largely underserved lower-mid market lending space with traditional bank lenders under regulatory pressure - European SMEs looking for alternative solutions

SMEs1 as backbone of economy

Number of
23m enterprises	99.8%
Enterprises
Persons
85m people		64.4%
employed
Value added		52.4%
€3.6tn

Source: Eurostat June 2022

Low market penetration in Germany

UK	29%	34%
France		Deals
GER		Last 10Y
	4,290
Other
13%
		23%

Source: Deloitte Private Debt Deal Tracker Spring 2023

Direct lending gaining significance

# Direct Lending Deals in Europe

Source: Deloitte Private Debt Deal Tracker Spring 2023

Bank lending under pressure		Inflation and supply chain issues
		Climate change targets

• Reduced bank lending due to ongoing regulatory restructuring pressure (e.g. Basel III, leverage cap)
• Increasing restricted financing access for European mid-market
• KfW Covid-19 loans seem to be very rigid and offer a great opportunity for refinancing going forward

• Central banks raising interest rates in an attempt to curb inflation with positive carry- over effects to returns on private debt instruments as 3M Euribor turns positive again
• Due to global supply chain disruptions firms have to hold significantly more inventory to support an equal level of revenue compared to the times prior to the pandemic leading to more financing needs

• The "net zero" target by 2050, as defined by the UN will require unprecedented levels of investment (EU targeting €7 trillion in green investments through 2050, of which at least €3 trillion will have to be privately funded)
• Companies of all sizes will have to adapt their operations to the new targets leading to attractive opportunities to finance both replacement and growth capex over the coming years

1 Micro and small enterprises (0-49 employees) as well as medium-sized enterprises (50-249 employees) in EU 27

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S t r a t e g y , c o m pe t i t i v e s t re n g t h s a n d m a r k e t po s i t i o n

Transaction activity in H1 2023/2024: Four successful transactions realised, one more agreed upon

Investment activity

NOKERA	ProMik	GMM Pfaudler	R+S	Solvares	in-tech
(Long-Term Investment)	(Investment)	(Partial disposal)	(Disposal)	(Partial disposal	(Disposal agreed in
				agreed)	April 2024)

Value creation through buy-and-build: 101 Add-ons during last eight years,

five add-ons during the course of the financial year 2023/2024

akquinet	AOE	Avrio Energie	MTWH
	(Two add-ons)

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S t r a t e g y , c o m pe t i t i v e s t re n g t h s a n d m a r k e t po s i t i o n

Private equity: Diversified portfolio to mitigate macro risks; Share of IT services & software increased

Diversification by sectors				Diversification by portfolio companies
(% of total portfolio value)				(% of total portfolio value)
100%												TOP 16-37: 31%
Industry and industrial	36%	31%	30%
technology
Industrial services	11%	17%	15%						TOP 11-15: 15%
Broadband				11%	8%						TOP 6-10: 23%
28%
telecommunications			Growth
				28%
IT services & software			5%	22%	sectors
Healthcare		3%	9%	6%						TOP 1-5: 31%
Others	17%	10%	13%
		30.9.2020	30.9.2023	31.3.2024		31.03.2024

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S t r a t e g y , c o m pe t i t i v e s t re n g t h s a n d m a r k e t po s i t i o n

Market-leading position in private equity; High proportion of

family successions reflecting DBAG's reputation

• of transactions in German MBO market by PE company, 2013-2023 (enterprise value €50-250mn)

DBAG MBOs - by vendor type 2019-2023

Families and founders

Corporate spin-offs

Financial investors

8% 0%

92%

30

22

19

15 15 15

13 12 11 11

German mid-market MBOs - by vendor type 2019-2023

28%

Families and founders	64%

DBAG

Corporate spin-offs

8%

Competitors

Financial investors

Source: FINANCE, DBAG

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S t r a t e g y , c o m pe t i t i v e s t re n g t h s a n d m a r k e t po s i t i o n

Highly experienced Investment Advisory Team and active network

Investment Advisory Team of 33, senior members with 18 years of average private equity experience

• Strong alignment of interest through co-investment by senior team members worth €17mn
• Highly incentivised by carried interest

Supported by "Executive Circle" network

• Consisting of experienced group
  (87 individuals as at September 2023) of industrial partners and senior advisers
• Sourcing deals and chairing supervisory boards in portfolio companies

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