Deutsche Effecten- und Wechsel- Beteiligungsges. AG

Earnings Release • Mar 17, 2004

News Details

Corporate | 17 March 2004 11:56

DEWB AG: Press Release for the 2003 Balance Sheet Press Conference

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– DEWB increases its shareholders’ equity by 22 percent; marked reduction in liabilities. Sales up to 30.7 million euros; positive operating result; five-year IRR increased to 41 percent. Strong exit pipeline; more mature companies account for majority of the portfolio. Jena, 17 March 2004. DEWB AG (Deutsche Effecten- und Wechsel- Beteiligungsgesellschaft; ISIN DE0008041005) significantly improved its balance sheet in the 2003 business year. Shareholders’ equity rose by 22 percent to 37.4 million euros. By contrast, liabilities fell by 8.0 million euros to 65.6 million euros. The main reason for this improvement in the balance sheet structure is the cash capital increase that was carried out in December 2003. This increase, together with the successful share sales, made a key contribution towards the increase of the liquid assets which totalled 17.5 million euros as at the balance sheet closing date. Another positive outcome of the capital measure is the doubling of the proportion of DEWB shares in free float to 24.3 percent which has sharply increased the attraction of the share and its tradability. Average annual return on DEWB investments increased to 41 percent (five-year IRR) DEWB also recorded a marked improvement in its sales and earnings situation in the 2003 business year. Sales were up by 11 percent to 30.7 million euros, reflecting the successful transactions realised by DEWB in the past business year: the company sold seven investments at a profit despite the difficult market conditions. On the back of these sales earnings before interest, taxes, depreciation and amortization (EBITDA) rose sharply from 0.2 million euros in the previous year to 7.4 million euros. As expected, depreciation in the 2003 business year, at 7.3 million euros, was significantly lower than in the previous year when the company recorded a figure of 19.3 million euros. As a result of this DEWB was able to improve its earnings before interest and taxes (EBIT) by 19.3 million euros and posted an operating profit of 36,000 euros for 2003 (previous year: -19.3 million euros). After making allowance for interest and taxes this produced a net income of -1.6 million euros for 2003 (previous year: -19.3 million euros). “We are of course not satisfied with this result. However, success in the investment business is not measured on the basis of individual business years but must instead be seen from the viewpoint of an investment cycle covering a number of years. Over the past five years DEWB has achieved an average Internal Rate of Return of around 41 percent per annum with its investments. This makes it one of the most profitable investment companies in Europe” says Dr. Dietmar Kubis, Spokesperson for the DEWB Executive Board at the company’s balance sheet press conference. DEWB possesses a strong exit pipeline; more mature companies account for 80 percent of the invested capital At DEWB this better-than-average success in the investment return is achieved through significant profits from disposals coupled with a high turnover rate of the invested capital. Since it started the investment business in 1998 DEWB has invested in more than 50 companies. Over the past five years an average of 89.3 million euros has been invested in portfolio companies. This is set against annual income from exits totalling on average 55.6 million euros. This is the result of DEWB’s high level of expertise in realising exits plus a consistent portfolio strategy that demands a balanced structure of seed and expansion financing as well as liquid assets for new investments. This balanced nature is also demonstrated by the DEWB portfolio as at 31 December 2003. As at this qualifying date DEWB had assets of 104.7 million euros under management. The key items are the capital invested in venture capital and securities totalling 81.3 million euros and liquid assets in the sum of 17.5 million euros. During the course of 2003 DEWB continued to strengthen its investment portfolio. It invested 19.2 million euros primarily in existing portfolio companies in the expansion phase. The proportion of invested capital applied to more mature companies, at around 80 percent, is very high and underlines DEWB’s exit-orientated strategy. “This portfolio structure offers DEWB good potential for further investment sales. In this context, we will also be helped by the marked improvement in sentiment on the capital and investment market: investors are now keener to buy and technology company valuations are increasing. The totality of these factors gives us optimism for our further business development. Nevertheless, it is difficult for us to forecast the precise date on which the transactions in which we are currently engaged will be concluded”, explains Dr. Dietmar Kubis. At the same time DEWB intends to utilise the growth dynamic in optical technologies for its corporate growth. The current favourable valuations of young technology companies, combined with DEWB’s comfortable cash flow position, provide a good basis for further acquisitions aimed at expanding the DEWB portfolio and generating a high-quality, long-term deal flow and achieving a better-than-average performance. Key statistics of DEWB AG 2003 TEUR/number 2002 TEUR/number Sales 30,663 27,657 EBITDA 7,357 174 EBIT 36 -19.318 Net income / loss -1,574 -22,211 Earnings per share (in euros) -0.12 -1.96 Shareholders’ equity per share (in euros) 2.83 2.39 Share price in euros (as at 31 December, in euros) 3.10 5.00 Number of shares (as at 31 December) 13,227,816 11,338,128 Capital invested in venture capital (as at 31 Dec.) 81,265 90,434 Investments in venture capital 19,179 24,258 Portfolio companies (as at 31 December) 30 37 Employees (annual average) 33 40 5-year IRR p.a. (in percent) 41 27 You will find the full DEWB AG 2003 business report on the Internet by going to www.dewb-vc.com. Contact: Investor Relations Public Relations Steffen Schneider Cornelia Sonntag Telephone: ++49 – 3641 – 65 22 90 Telephone: ++49 – 3641 – 65 21 68 Telefax: ++49 – 3641 – 65 21 57 Telefax: ++49 – 3641 – 65 21 57 E-Mail: steffen.schneider@dewb-vc.com E-Mail:cornelia.sonntag@dewb-vc.com Company portrait of DEWB AG (www.dewb-vc.com; ISIN DE0008041005). DEWB is a bank-independent, quoted investment company which operates internationally. The company is based in Jena, one of the booming high-tech regions of Germany. DEWB focuses on optic-related technologies that will be one of the most important technology drivers in the next years. It provides support for growth companies from the optoelectronics, biotechnology and telecommunications/information technologies sectors, through technological know- how, comprehensive advice and equity capital. In this respect, the company is able to make use of the international technology network of the Jenoptik Group and its comprehensive experience in incorporations and corporate transactions. DEWB has very quickly established as a quality provider in the sector and is one of the most profitable German investment companies. The company currently has investments in 30 companies with a total investment volume of nearly 80 million euros. The 13.2 bearer shares with a calculated nominal value of one euro per share are traded on the stock exchange in Frankfurt as well as in the Xetra system (symbol: EFF). end of message, (c)DGAP 17.03.2004 ——————————————————————————– WKN: 804100; ISIN: DE0008041005; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und Freiverkehr in Stuttgart 171156 Mär 04