LAIQON AG — Earnings Release 2012

Nov 29, 2012

GROUP'S	PERFORMANCE	INDICATORS	OF	30,
KEY		AS	SEPTEMBER,	2012

T1	9M-2012	9M-2011	Q3-2012	Q3-2011
Sales	10,047	10,516	2,903	4,529
Recurring income	7,996	7,725	2,566	2,645
EBIT	112	-5,625	-494	-477
Consolidated net profit/loss for the period	-1,917	-3,460	-2,155	1,081
EBIT margin (%)	1.1	-53.5	-17.0	-10.5
Return on sales (%)	-19.1	-32.9	-74.2	23.9
Total assets	39,185	40,189
Equity	16,381	4,805
Equity ratio (%)	41.8	12.0
Earnings/Loss per share (1)	-0.07	-0.27	-0.08	0.08
Average headcount	72	110	69	99
Personnel expenses	5,143	6,670	1,244	1,792
Personnel expense ratio (%)	51.2	63.4	42.9	39.6
Employees (as of September 30)	70	87

FONDS' KEY PERFORMANCE INDICATORS

1 million	9M-2012	9M-2011	Q3-2012	Q3-2011
Equity placements	18.8	29.4	5.8	14.8
of which in umbrella funds	–	–	–	–
of which in the form of restructuring capital	3.5	7.7	3.5	0.0
Cumulative equity placements under management	1,849	1,847
Cumulative investment volume under management	4,579	4,714
Cumulative equity placements	2,008	1,992
Cumulative investment volume	4,995	5,095
Assets held under trust, cumulative	1,663	1,624
Number of funds initiated, cumulative	105	105
Number of subscribers	53,093	52,620

LETTER FROM THE MANAGEMENT BOARD

Ladies and gentlemen,

In the period under review, Lloyd Fonds AG was able to make use of the momentum which had been generated after last year's equity issue to create a solid business basis: With the payment of the liability release compensation at the beginning of the year, it was able to free itself of all contingent liabilities coming within the scope of the bank agreement of April 2010 once and for all. This marked the successful completion of Lloyd Fonds AG's restructuring efforts and laid the foundation for its future growth. Moreover, the cost-cutting program is unleashing its full effect, meaning that recurring revenues should be sufficient to cover all the personnel costs and operating expenses in 2013.

Even though placement figures had already fallen short of our expectations in the first half of 2012, we generated earnings in the first two quarters of the year, allowing us to return to profitmaking territory. The fact that we are able to report operating profit as of September 30, 2012 is further proof that we are well positioned and justifies our optimism moving forward into 2013. However, we sustained a consolidated net loss of € 1.9 million at the end of the period under review chiefly due to the conclusion of proceedings with the tax authorities.

This tax payment now also relieves us of this legacy liability. In addition, with the disposal of our shares in Feedback AG, we have been able to free ourselves of an investment which tied up capacity. As well as this, we have decided to apply for a change of segment in the Frankfurt Stock Exchange and will therefore be listed in the Entry Standard in April 2013.

All this has given us the necessary scope to concentrate on our core skills in shipping and real estate. With this strategic focus, we are addressing the two asset classes which have generated the greatest business for decades. Shipping and real estate – these two segments are where our future lies.

In the shipping segment, we are particularly working to reinforce our existing funds. In addition, our declared aim is to generate new business again in this segment in the future. After all, one thing is certain: the current shipping crisis will yield to an upswing. This volatility has always been typical of shipping markets and is what makes it attractive to investors in the long term. We are already taking steps to ensure that we benefit from the next market upswing.

In the real estate segment, we launched our "Bremen Domshof" closed-end investment fund at the beginning of November. The fund is investing in an office building in a top location opposite the Bremen cityhall. The building is located directly in Domshof, a street in the historical part of Bremen, and is leased to several renowned companies including accounting and auditing company PricewaterhouseCoopers. The investment volume of the fund equals € 17.9 million. The equity of € 8.9 million is primarily to be collected by Bremen-based commercial and savings banks. This fund will be followed by further first-class solutions. We are currently working on direct and private placements for real estate projects which we have already secured on an exclusive basis. As well as this, we plan to launch a special-purpose fund for institutional investors mid next year.

Given the persistently difficult underlying conditions and the planned legislative changes, the process of change affecting the closed-end investment fund market has not yet come to a halt: Changed regulatory and also market requirements call for adjustments to the business model and the organizational structures of all market participants. As a listed fund arranger, Lloyd Fonds has an excellent opportunity of harnessing the chances afforded by the more stringent regulatory requirements and of emerging from the expected market consolidation as a winner.

We wish to thank our staff for their outstanding work in these persistently difficult times. Our gratitude also goes out to our subscribers and shareholders as well as our business and sales partners for their confidence in us. We look forward to a continuation of our successful joint activities.

Yours sincerely,

Dr. Torsten Teichert Dr. Joachim Seeler

LLOYD FONDS STOCK

In the wake of the European debt crisis, the financial markets generally remained volatile in the period under review. At the beginning of the year, Standard & Poor's (S&P) had downgraded nine European countries, including France and Austria, which had previously held the highest AAA rating. In June, Moody's and Fitch downgraded Spain by three notches to Baa3 and BBB, respectively. S&P followed suit in October, lowering its rating for Spain by two notches to BBB-. Germany remains the only country to have the highest AAA rating for all three major rating agencies.

In the period under review, the DAX advanced by around 19% to 7,216 points. The SDAX also made headway but climbed by only around 12%, closing at 5,004 points on September 28.

STOCK PERFORMANCE

performance of the lloyd fonds stock and trading volume

performance of the lloyd fonds stock On the basis of calendar weeks 1–39 in 2012

As in the previous year, Lloyd Fonds stock entered the new year with above-average trading volumes and substantial gains, hitting a high for the year to date of € 1.57 on February 9. However, in the course of the year, it retreated fairly substantially, closing the period under review at € 0.72 and hence down 28% compared with the beginning of the year. As selling pressure continued in October, the stock hit a temporary low of € 0.55.

Lloyd Fonds stock parameters
Ticker	WKN 617487, ISIN DE0006174873, ticker (Reuters) L10
Market	Official trading in Frankfurt/Main
Market segment	Prime Standard index
Subscribed capital	1 27.5 million
Designated sponsors	Close Brothers Seydler Bank AG, Silvia Quandt & Cie. AG
Number of shares
(September 28, 2012)	27,469,927
Market capitalization (September 28, 2012)	1 19,778,347
Price (September 28, 2012)	1 0.72

CHANGES IN SHARE CAPITAL

Following a resolution passed at the extraordinary shareholder meeting held on December 5, 2011 approving a cash equity issue with indirect subscription rights, the subscription period for the new shares commenced on December 9, 2011 and expired on December 22, 2011. As a result, Lloyd Fonds AG's share capital increased from 12,725,367 to 27,469,927 issued shares. After being entered in the trade register on December 30, 2011, the new shares were admitted to regulated trading in the Frankfurt stock exchange on May 15, 2012 following the receipt of clearance for the issuing prospectus by the German Federal Financial Supervisory Authority (BaFin). The issuing prospectus was prepared on the basis of the consolidated and annual financial statements for 2011.

SHAREHOLDER STRUCTURE

As a result of the equity issue, there was a substantial shift in Lloyd Fonds AG's shareholder structure at the end of 2011. The shareholder structure as of the end of the period under review is as follows: The new principal shareholder is ACP Fund V LLC, which holds 13.7 million shares (49.9%). The second largest shareholder is B&P-T Treuhandgesellschaft with 2.8 million shares (10.2%). Wehr Schiffahrts KG and management of the Management Board each hold 3.3% of the voting rights. Mr. Hans-Jürgen Wömpener holds a share of 3.0%. Accordingly, 30.3% of Lloyd Fonds' shares are free float.

shareholder structure

ANNUAL GENERAL MEETING

Lloyd Fonds welcomed around 100 shareholders to its annual general meeting for 2012, which was held in Hamburg at the end of July, the third shareholder meeting to take place within twelve months. Following their report on the Company's performance in 2011, both members of the Management Board were available to provide detailed answers to questions concerning Lloyd Fonds' business and corporate strategy. 19,705,226 of the total of 27,469,927 shares, equivalent to 71.7% of the Company's share capital, were represented at the annual general meeting. All the items on the agenda were passed with close to 100% of the votes cast.

INTERIM MANAGEMENT REPORT OF THE LLOYD FONDS GROUP FOR THE FIRST NINE MONTHS OF 2012

GENERAL ECONOMIC ENVIRONMENT

The strong momentum with which the global economy entered 2012 had slowed appreciably by the middle of the year. According to the autumn study published by the Kiel Institute for the World Economy (IfW), economies in nearly all regions have since weakened. One reason for muted business and consumer sentiment is the debt and confidence crisis afflicting the Eurozone. Many research institutes doubt whether the monetary policy being pursued by the European Central Bank and the US Fed will be able to spur the economy.

Global gross domestic product grew at an annualized rate of only 2.4% in the second quarter. According to IfW, this is the weakest expansion since the global recession was overcome in 2009. The IfW indicator also points to more muted growth in global economic activity in the third quarter. In June global industrial production was slightly below the level recorded at the beginning of the year. With the developed economies remaining flat for the past one-and-a-half years, the emerging markets have now also been stagnant in the last few months.

The Eurozone crisis is also taking its toll on the German economy. The ifo business climate index has been dropping steadily since April, standing at 101.4 points in September. On the other hand, German exports have been benefiting from the depreciation of the euro and have remained strong despite the softening economy. IfW assumes that macroeconomic expansion in Germany will weaken towards the end of the year, with real gross domestic product growing by 0.8% in 2012 (2011: growth of 3.0%).

All told, the Eurozone crisis will continue to determine economic policies. Although the governing council of the European Central Bank decided in September to buy up an unlimited volume of sovereign bonds, there is still no sign of a long-term solution to the crisis.

THE CLOSED-END INVESTMENT FUND MARKET

According to the Association of Closed-End Investment Funds (VGF), equity of € 2.2 billion was collected in the market for closed-end investment funds in the first nine months of 2012, a decline of 40.5% over the previous year (comparison period € 3.7 billion). At the same time, there was a substantial increase in the proportion of institutional investors, who accounted for equity placements of € 636.1 million in the first nine months of 2012 (comparison period € 211.3 million).

Changes in the market for closed-end investment funds are proceeding apace: On June 1, 2012, large parts of the amended Investment Intermediary and Investment Product Law came into effect, resulting in new rules for the sale of closed-end investment funds. Under the new legislation, shares in closed-end investment funds are now classified as financial instruments and thus treated in the same way as other investment products. The Capital Investment Code, which ratifies the EU Directive on Alternative Investment Fund Managers, will be taking effect on July 22, 2013.

According to rating agency Scope, it is taking increasingly longer for closed-end investment funds to be placed in full. Fewer and fewer funds are being closed within a space of less than six months. Within the real estate segment, Scope notes that 44 funds were placed within six months in 2010, compared with 28 in 2011 and only ten in 2012 to date.

BUSINESS PERFORMANCE

In the first nine months of the year, the Lloyd Fonds Group's sales came to € 10.0 million (comparison period € 10.5 million). EBIT of € 0.1 million was achieved (loss of € 5.6 million at the EBIT level in the comparison period). Due to net tax expense of € 1.6 million chiefly as a result of tax assessed for earlier years, a consolidated net loss of € 1.9 million was reported for the period (loss of € 3.5 million in the comparison period).

The residual risk of € 0.7 million in connection with the "Holland Utrecht" fund referred to in the report on material events occurring after the balance sheet date included in the interim report as of March 31, 2012 was eliminated as the asset was handed over on May 1, 2012.

In the first nine months of the year, Lloyd Fonds AG recorded equity placements of € 18.8 million across all asset classes (comparison period € 29.4 million). This includes € 3.5 million (comparison period € 7.7 million) in the form of restructuring capital collected for two existing funds which required additional liquidity as a result of the shipping crisis.

In the period under review, rating agency Scope Analysis additionally enhanced its analysis system and particularly increased the weighting of the market-related factors and the quality of the fund manager. As a result, the ratings awarded to Lloyd Fonds AG funds were upgraded. "Lloyd Fonds A380 Singapore Airlines" was upgraded from "A" to "AA-", "Best of Shipping III" from "BBB+" to "A", "Lloyd Fonds Energie Europa" from "A-" to "A" and "Holland Utrecht" from "A-" to "A". In addition, Lloyd Fonds AG was awarded a high management rating, with the company as a whole assigned an "A+" rating. The two core segments – shipping and real estate – were also awarded an "A+" rating.

On January 9, 2012, Michael F. Seidel (the member of the Management Board responsible for finance, sales and marketing, trusteeships and investor relations) and the Supervisory Board came to an agreement that Mr. Seidel would leave the Company effective January 31, 2012. This decision was made in mutual agreement on account of differing opinions on the Company's strategic future. Dr. Joachim Seeler was appointed to the Management Board of Lloyd Fonds AG effective February 1, 2012 and is responsible in this position for real estate activities, sales and marketing, trusteeship activities and IT. In connection with the changes to the Management Board, Dr. Torsten Teichert has assumed responsibility for financial matters and investor relations in addition to his existing duties. The focus on the core asset classes of shipping and real estate reflected in the changes to the composition of the Management Board was systematically continued in the first half of the year.

Shipping

In the shipping segment, Lloyd Fonds is continuing to concentrate on developing new investment and placement models for refinancing and restructuring the existing funds. To this end, it has been exploring various options for pooling the individual single-ship entities to form larger units. The aim is to create a legal basis for combining several ships so as to achieve better financing terms thanks to cash pooling, cross holdings and economies of scale in ship operations and management as a basis for raising the necessary fresh capital from institutional investors. In this way, the ships involved will have a better chance of weathering the crisis, thus obviating the need for "fire sales" at this stage and allowing subscribers to benefit from a market recovery.

In the period under review, five ship entities entered insolvency: MS "Wehr Nienstedten" Schiffahrtsgesellschaft mbH & Co. KG, MS "Emilia Schulte" Shipping & Co. KG", MS "Laura Schulte" Shipping GmbH & Co. KG, Schifffahrtsgesellschaft MS "Annabelle Schulte" Shipping GmbH & Co. KG and MS "Tosa Sea" Schifffahrtsgesellschaft mbH & Co. KG.

After the temporary suspension of selling activities at the beginning of March, the "Best of Shipping III" secondary-market fund was closed on May 31 with a placement volume of around € 7.2 million. The secondary-market fund comprises 57 investments in 89 ships as of the end of the period under review. 91.8% of its capital is invested in container ships, 4.9% in bulkers, 2.8% in tankers and 0.5% in special-purpose ships. In addition, four shares in restructuring models were acquired.

Real estate

Lloyd Fonds' real estate asset class concentrates on residential, office and commercial real estate in Germany. In the first nine months of the year, five real estate projects had been exclusively secured in Hamburg, Bremen, Hannover and Ulm. Of these, the Bremen project was placed in a closed-end fund for which the subscription phase commenced at the beginning of November. At the same time, the real estate markets in the Netherlands and the United States remain under observation.

The "Holland Utrecht" real estate fund is still in the subscription phase with a planned investment volume of around € 30.3 million (including the 5% front-end load). The issue capital (including the 5% front-end load), stands at € 16.3 million. With its heightened energy efficiency and the use of environmentally friendly technologies, the fund asset has been certified as a "Green Building" and assigned the "A" energy label (the selling prospectus had indicated a label of "B" or better). The fund has a planned duration of ten years. The asset was duly handed over to the fund in May. To finance the shortfall in the purchase price of the asset as of the date on which it was transferred to the fund, a contract was entered into with the seller of the real estate for the provision of bridge finance of € 1.9 million, which has since been repaid in full using the equity raised, together with a loan of € 2.5 million provided by Lloyd Fonds AG, which is being successively paid back as placement progresses.

Investments and alternative assets/energy

Established at the beginning of the year, the "Investments and Alternative Assets" department develops and examines alternative fund and financing models, manages the Company's own investments and is particularly tasked with advancing the consolidation of the closed-end investment fund market.

In accordance with the terms of the applicable contracts, the two interim finance arrangements for "Lloyd Fonds A380 Singapore Airlines" were converted into long-term loans of a duration of 11.5 years at the beginning of January 2012 and are to be repaid using the equity collected. This means that the fund has secure bridge finance over a period of more than eleven years on generally favorable terms.

KALP GmbH, in which Lloyd Fonds holds a 45.1% share, continued to successfully develop the first automatic lashing platform for loading and unloading container ships. At the end of 2011, negotiations were commenced with the Finnish Cargotec Group with the aim of entering a global licensing contract. It was on account of these negotiations that a private placement offering which had originally been launched to finance KALP was halted. In February 2012, the license contract was duly signed. The Cargotec Group as the licensee has the industrial capacity and the international network required to prepare KALP GmbH's innovative solution for series production and to market it globally. The license contract entered into with the Cargotec Group testifies to the quality of this investment.

The share held in listed financial services retail company Feedback AG, Hamburg, was sold in the second quarter subject to the discharge of certain conditions precedent. On June 29, 2012, a contract was signed providing for the sale of the 6,299,502 shares which Lloyd Fonds AG held in Feedback AG (40.01% of that company's share capital) to a group of investors. Legal execution of the transaction was completed following receipt of the full purchase price in early August.

Following the temporary suspension of the subscription phase for the "Lloyd Fonds Energie Europa" fund on June 27, 2012, the management of the fund entity decided to close the fund with limited-partnership capital of € 12.1 million. Accordingly, the fund comprises the Lairg wind farm as the seller of the Köthen solar park in Saxony-Anhalt withdrew from the contract. In view of Lloyd Fonds' strategic focus on the two asset classes shipping and real estate, no further activities in the energy segment will be pursued in the future. As a result, the energy department has been closed.

STATEMENT OF PERFORMANCE

Lloyd Fonds released its statement of performance for 2011 on schedule, documenting the condition of the 105 closed-end investment funds which had been established as of December 31, 2011. The 18 funds which have previously been liquidated have generated substantial gains for the subscribers. With an average duration of just under four years, they have yielded an average post-tax return of 7.1% per year. Including five insolvent shipping fund entities, the yield has dropped to 3.2% p. a. In the case of the active funds, the flowbacks achieved to date stand at 3.8% per year of invested subscriber capital at the subscriber level. The real estate and energy segments have proven their merits as low-risk investments and, on average, exceeded the applicable forecasts.

RESULTS OF OPERATIONS

The notes on the Group's results of operations analyze the material developments in the period from January1 to September 30, 2012.

Results of operations for the first nine months, the third quarter and for the comparison period break down as follows:

		9M-2012 9M-2011	Q3-2012	Q3-2011
T1
Sales	10,047	10,516	2,903	4,529
Cost of sales	-3,151	-3,234	-793	-1,616
Personnel expenses	-5,143	-6,670	-1,244	-1,792
Depreciation, amortization and impairments	-658	-748	-169	-231
Net other operating expense	-4,459	-6,060	-1,690	-1,998
Share of profit of associates	3,476	571	499	631
Net earnings/loss from ordinary activities (EBIT)	112	-5,625	-494	-477
Net finance income/expense	-381	579	-127	-136
Earnings/loss before taxes (EBT)	-269	-5,046	-621	-613
Income taxes	-1,648	1,586	-1,534	1,694
Consolidated net profit/ loss for the period	-1,917	-3,460	-2,155	1,081

The following changes arose in connection with sales:

9M-2012 9M-2011 Q3-2012 Q3-2011

Sales	10,047	10,516	2,903	4,529
Miscellaneous	–	19	–	–
Management fees	2,177	2,226	659	767
Trusteeship	5,882	5,630	1,924	1,957
Arrangement of financing	334	234	70	106
Project organization	211	518	20	394
Placement of equity	1,443	1,889	230	1,305
T1

Compared with the year-ago period, sales decreased by T€ 469 to T€ 10,047 in the first nine months of 2012. Income from equity placements declined by T€ 446 to T€ 1,443 due for the most part to the lower placement figures of € 18.8 million in the first nine months of 2012 (comparison period € 29.4 million). Equity placements in the first nine months of 2012 also include restructuring capital of € 3.5 million (comparison period € 7.7 million) on which no income was earned.

The project structuring income of T€ 211 (comparison period T€ 518) in the period under review was primarily attributable to the "A 380 Singapore Airlines" (T€ 125) and the "Energie Europa" (T€ 83) funds.

Income from the arrangement of financing was up on the first nine months of 2011, rising from T€ 234 to T€ 334 due in particular to the trends in placement volumes for the "Holland Utrecht" fund in the period under review.

At T€ 5,882 in the period under review, income from trusteeship business was up slightly on the previous year (T€ 5,630). Recurring income from ongoing trusteeship fees came to T€ 5,826 (comparison period T€ 5,552). Establishment fees, which are recognized in accordance with the progress made in the placement of the fund, came to T€ 56 in the first nine months of 2012, down from T€ 78 in the comparison period.

At T€ 2,177 in the first nine months of 2012, management fees were on a par with the previous year (T€ 2,226) Management fees earned in the period under review comprise amounts totaling T€ 1,240 (comparison period T€ 1,374) received for the management of active funds as well as services to the open-end ship fund "LF Open Waters OP" of T€ 937 (comparison period T€ 852).

The cost of sales came to T€ 3,151 in the period under review (comparison period T€ 3,234). The lower proportion relative to equity placements is due to higher expenses in the period under review for sales commission in connection with individual funds.

Compared with the first nine months of the previous year, personnel costs declined by T€ 1,527, dropping from T€ 6,670 to T€ 5,143 chiefly due to the decline in the average head count from 110 to 72. On the other hand, expenditure on variable remuneration and settlement payments rose by T€ 76 over the previous year.

Depreciation, amortization and impairment losses came to T€ 658 in the period under review (comparison period T€ 748). This includes impairment expense on shares in associates of T€ 344 (comparison period T€ 266).

The decline in net other operating expense from T€ 6,060 to T€ 4,459 chiefly reflects the cost cuts implemented, with legal and consulting costs dropping by 44.6 % or T€ 832 over the comparison period. This is particularly due to the non-recurring expense arising in the year-ago period in connection with the restructuring of the Company. Other operating income rose by T€ 507, chiefly as a result of income from the derecognition of liabilities (T€ 319; comparison period T€ 41) and income from subletting office space (T€ 245; comparison period T€ 27). The opposite effect arose from heightened expenditure on impaired and irretrievable receivables of T€ 700.

The share of profit of associates rose from T€ 571 to T€ 3,476. Earnings climbed by T€ 2,070 to T€ 1,929 particularly as a result of the fair value remeasurement gains of T€ 1,930 on the investment in TVO Income Portfolio L.P. The share of profit from the investment in Feedback AG of T€ 1,209 (comparison period T€ -312) is mostly due to the sale of all the shares in this company in the period under review.

As a result, the Lloyd Fonds Group recorded EBIT of T€ 112 for the first nine months of 2012 (comparison period loss of T€ 5,625 at the EBIT level).

Net finance expense came to T€ 381 in a swing away from the net finance income of T€ 579 recorded in the year-ago period. This particularly includes interest expense on the remeasurement of the net asset value attributable to other limited partners (T€ -156, comparison period T€ 110) and interest on income tax liabilities (T€ 272). Currency translation gains came to T€ 17, down from T€ 507 in the previous year.

The net tax expense of T€ 1,648 arising in the period under review (comparison period net tax income of T€ 1,586) was chiefly due to the conclusion of proceedings with the tax authorities. More details can be found in the comments on the "Cyprus tax risks" in the risk report included in the management report. Other than this, only minor tax expense arose in the period under review due to the income tax fiscal union established between Lloyd Fonds AG (dominant company) and Lloyd Treuhand GmbH (subordinate company). The tax refund arising in the year under review results from income from the derecognition of tax liabilities and assessment notices for prior years.

Consolidated net loss for the first nine months of 2012 came to T€ 1,917, down from the consolidated net loss of T€ 3,460 in the previous year.

NET ASSETS

The Group's net assets as of September 30, 2012, and December 31, 2011, respectively, are analyzed in the following table:

Sept. 30, 2012 Dec. 31, 2011
899	1,209
22,326	22,464
13,093	10,428
2,867	16,947
39,185	51,048
Sept. 30, 2012 Dec. 31, 2011
16,381	18,390
797	664
10,241	13,640
11,766	18,354

As of September 30, 2012, total assets stood at T€ 39,185 and were thus down T€ 11,863 or 23.2% on the end of 2011.

During the period under review, fair-value gains of T€ 1,930 were recognized on the shares in TVO. As the sale of all the shares held in Feedback AG had the opposite effect, the value of financial assets was virtually unchanged.

On the assets side, there was chiefly a decline in cash and cash equivalents (down T€ 14,080). Receivables and other assets moved in the opposite direction, rising by T€ 2,665.

Reference should be made to the notes in the section on the Company's financial condition for details of the changes in cash and cash equivalents.

The increase in receivables and other assets particularly relates to short-term loans granted to the "Holland Utrecht" (T€ 1,550) and "Bremen Domshof" (T€ 3,200) real estate funds. The opposite effect arose from impaired and irretrievable receivables of T€ 1,570.

On the other side of the balance sheet, the payment of the liability release compensation of T€ 10,000 was the main reason for the reduction of T€ 6,588 in liabilities to T€ 11,766. Funding of the loan to the "Bremen Domshof" fund (T€ 3,200) caused an increase in liabilities.

Repayments made towards short-term loans as well as the complete discharge of the overdraft facilities caused financial liabilities to drop by T€ 3,399.

Equity dropped from T€ 18,390 as of December 31, 2011 to T€ 16,381 as of September 30, 2012 primarily as a result of the consolidated loss of T€ 1,917 sustained for the period.

FINANCIAL CONDITION

The Group's financial condition in the first nine months compared with the same period of the previous year is set out below:

	9M-2012	9M-2011
T1
Consolidated net loss for the period before share of profit of investments,
interest and income tax	-3,347	-5,689
Non-Cash expenses	1,848	935
Changes in working capital	-13,273	-2,319
Dividends and profit distributions received	457	835
Net interest and income taxes received and payed	1,582	466
Cash flow from operating activities	-12,733	-5,772
Cash flow from investing activities	2,482	-342
Cash flow from financing activities	-2,859	-612
Net cash outflow	-13,110	-6,726
Cash and cash equivalents at the beginning of the period	15,973	10,288
Currency translation differences	-3	4
Cash and cash equivalents at the end of the period	2,860	3,566

The net cash outflow from operating activities of T€ 12,733 in the period under review was particularly due to the reduction in working capital of T€ 13,273. This was mainly due to the payment of the liability release compensation (T€ 10,000). A similar effect arose from the grant of a loan of T€ 1,550 to the "Holland Utrecht" fund and a decline in trade payables (down T€ 1,498).

The cash flow from investing activities of T€ 2,482 is primarily due to payments received from the sale of all of the shares held in Feedback AG.

Lloyd Fonds AG has granted a loan to a fund entity which was refinanced in the same amount.

A net cash outflow of T€ 2,859 from financing activities arose chiefly as a result of loan repayments of T€ 2,726 made in the period under review.

As a result, free cash and cash equivalents contracted by T€ 13,113 in the first nine months of the year to T€ 2,860.

EMPLOYEES

As of September 30, 2012, the Lloyd Fonds Group had 70 employees (September 30, 2011: 87), equivalent to a decline of 17 or 19.5% in the number of employees, which does not include members of the Management Board, employees on extended child-care leave, trainees and temporary staff.

SIGNIFICANT EVENTS AFTER SEPTEMBER 30, 2012

The subscription phase for the "Bremen Domshof" German real estate fund commenced at the beginning of November. The fund is investing in an office building in the Bremen CBD. The building is located directly in Domshof, a street in the historical part of Bremen, and is leased to several renowned companies including accounting and auditing company PricewaterhouseCoopers. The investment volume of the fund equals € 17.9 million, with equity standing at € 8.9 million. The fund has a planned duration of 15 years, with annual dividends of a consistent 5.25%.

At the meeting of the shareholders of Lloyd Fonds A380 Flugzeugfonds GmbH & Co. KG, a resolution was passed to extend the subscription period for "Lloyd Fonds A380 Singapore Airlines" until December 31, 2013.

The Management Board of Lloyd Fonds AG decided on October 17 with the Supervisory Board's approval to switch from the Prime Standard of the regulated market to the Entry Standard of the Frankfurt Stock Exchange and immediately lodged an application for the change of segment with the Frankfurt Stock Exchange. Accordingly, the Company assumes that it will be admitted to the Entry Standard of the Frankfurt Stock Exchange in April 2013. The purpose of the reclassification is to reduce expenses and the organizational resources required for inclusion in the regulated market. At the same time, the Entry Standard ensures a high degree of transparency and tradeability for the shareholders.

At the beginning of March 2012, a letter of intent was signed with a party interested in buying the TVO portfolio (US condominiums), upon which a sales contract was signed conditionally on September 14, 2012. Although the periods stipulated in the contract have since expired, negotiations on the purchase contract are continuing. In accordance with information currently available, it will no longer be possible to achieve in full the purchase price which was utilized to calculate the value of the assets. This will have little effect on the Company's earnings as on the basis of current knowledge any reduction in the purchase price will be offset by an increased waiver of the loan by the lending bank.

No other reportable events occurred after the end of the quarter.

RISK REPORT

With the payment of the liability release compensation on January 10, 2012, Lloyd Fonds AG was finally freed of all the contingent liabilities coming within the scope of the April 2010 bank agreement. Accordingly, the Group's risk exposure has been substantially reduced.

As of the date on which the interim financial report for the first half of the year was prepared, the purchase price guarantee issued in favor of the seller of the asset for investment in the "Holland Utrecht" fund had been discharged as the fund entity had taken acceptance of the asset as planned and the purchase price had been paid in full to the seller. Moreover, Lloyd Fonds AG granted the fund entity a loan of € 2.5 million, of which an amount of € 0,7 million was still outstanding as of the date of this interim report.

The proceedings before the tax tribunal concerning the tax remeasurement of four ship transactions involving Cypriot project companies in the years from 2004 to 2007 were concluded in the third quarter. In this connection, Lloyd Fonds AG has undertaken to remit to the tax authorities a payment. Due allowance has been made for the resultant expense in the consolidated financial statements as of September 30, 2012 following a reassessment of the situation by Lloyd Fonds AG. There are no further tax liabilities or risks beyond this for Lloyd Fonds AG arising from the remeasurement of the four ship transactions.

Lloyd Fonds AG has issued a letter of comfort in favor of Lloyd Fonds Bremen Domshof GmbH & Co. KG as collateral for repayment of the short-term loans to the financing bank.

The detailed risk report can be found on page 67 of the annual report for 2011.

OUTLOOK FOR THE GLOBAL ECONOMY

For the year ahead, the Kiel Institute for the World Economy (IfW) assumes that global economic growth will strengthen, with global gross domestic product expanding by 3.6%. The International Monetary Fund (IMF) has scaled back its forecasts and is now looking for global economic growth of 3.6% in 2013, down 0.3% on its July forecast. It cites substantially heightened risks as the reason for this correction. In the Eurozone, the sovereign debt crisis may escalate while in the United States highly restrictive fiscal policies threaten to place a damper on demand. Nor may it be possible for the emerging markets to shield themselves from these economic trends. Accordingly, the International Monetary Fund forecasts an average growth rate of 5.6% for these economies, down 0.2% on its July forecast. The forecast for India has been adjusted particularly sharply downwards, while expectations for China have been trimmed only slightly.

The IMF has lowered its outlook for the German economy for 2013 by 0.5 points to 0.9%. On the other hand, IfW in Kiel assumes that it will pick up to a somewhat greater extent and expand by an average of 1.0% due to a gradual easing of conditions in the Eurozone and the rest of the global economy. The highest forecast for the German economy has been issued by German Institute of Economic Research (DIW), which projects growth of 1.6%, underpinned by the positive effects on German exports resulting from expansionary monetary policy in emerging markets such as Brazil and China and the resultant economic upswing among other things.

OUTLOOK FOR THE CLOSED-END FUND MARKET

The market for closed-end investment funds is continuing to evolve due, on the one hand, to the turmoil being caused by the global economic crisis and the resultant restraint of investors in new business and, on the other hand, the imminent regulatory changes being brought about by the AIFM Directive, which will be taking effect in Germany via the Capital Investment Code on July 22, 2013.

The research company FeriEuroRating Services AG assumes that the tighter regulation will trigger heavy market consolidation and is also likely to lead to material changes in the structures of closedend investment products. In addition to the limited partnership model, which will remain the prime choice as a vehicle for rental income, innovative structures which particularly serve to limit the risk on both new and existing funds will grow in importance. Moreover, the Act to Amend the Investment Intermediary and Investment Product Law will impose substantially more stringent marketing requirements and thus further professionalize the market.

Feri assumes that real estate funds investing in Germany will particularly remain a preferred target for German investors. This means that the trend emerging last year will continue as Germany is seen as being a stable market for investors thanks to moderate growth, declining unemployment numbers and relatively solid public-sector finances.

OUTLOOK FOR THE COMPANY

By focusing on its two core shipping and real estate segments, Lloyd Fonds is orienting its strategy towards the asset classes which have generated the greatest sales in the closed-end fund market for decades. This strategy is also being adopted in the light of the planned more extensive regulatory requirements which attach key importance to asset management.

Lloyd Fonds AG has set itself the goal of playing an active role in the expected consolidation of the shipping segment and the closed-end investment fund market, particularly in the area of trusteeship entities and fund management in a bid to strengthen its enterprise value on a sustained basis.

With the appointment of Dr. Seeler to the Management Board, the real estate segment has become the Company's second business mainstay. In this segment, Lloyd Fonds will be chiefly offering high-quality real estate investments in Germany.

Incorporated in May 2012, Lloyd Fonds Consulting GmbH will be concentrating on institutional business. After receiving the license applied for under the German Banking Act for the new subsidiary, Lloyd Fonds plans to establish a preliminary specialpurpose fund for institutional investors.

In response to the structural changes emerging in the financial markets and the difficult sector conditions, Lloyd Fonds adopted further measures in the period under review aimed at additionally optimizing operational processes and cost structures. This follows on from the measures which had been taken in the second half of 2011 to boost cost efficiency. On this basis, Lloyd Fonds expects to be able to reduce personnel costs by around 20% over the previous year in 2012.

At the same time, it is working on stabilizing recurring income from management and trusteeship fees. The Company expects to report full-year consolidated net loss for 2012 due to the nonrecurring tax effects and assumes that it will at least break even in 2013.

Given the sustained difficult macro-economic conditions underlying the market for closed-end investment funds, Lloyd Fonds has dispensed with a specific forecast of placement volumes in 2012. However, the Company assumes that contrary to assumptions at the beginning of the year the placement figures for 2012 will not be up on the previous year. Placement performance in 2013 will materially hinge on the imminent implementation of the AIFM Directive.

OPPORTUNITIES

The release from all legacy risks and the substantial improvement in its balance sheet following the issue of fresh equity are allowing Lloyd Fonds AG to strengthen its retail partners' trust in the Lloyd Fonds brand, enhance its competitiveness on this basis and return to the pre-crisis levels of equity. In this way, Lloyd Fonds AG stands on a solid economic basis, permitting it to advance its strategic development beyond 2012 and regain lost market share.

Lloyd Fonds has decided to concentrate on two core asset classes, namely shipping and real estate. The subscription phase for the "Bremen Domshof" German real estate fund commenced in November. The two funds "Holland Utrecht" and "Lloyd Fonds A380 Singapore" are still in the subscription phase.

Further and more detailed information on the outlook for economic conditions as a whole and with respect to the opportunities for the Company can be found in Lloyd Fonds AG's Annual Report for 2011.

INTERIM FINANCIAL STATEMENTS OF THE LLOYD FONDS GROUP (IFRS) AS OF SEPTEMBER 30, 2012

CONSOLIDATED INCOME STATEMENT

for the period from January 1 to September 30, 2012 and for the period from July 1 to September 30, 2012

Note	9M-2012	9M-2011	Q3-2012	Q3-2011
6.1	10,047	10,516	2,903	4,529
6.2	-3,151	-3,234	-793	-1,616
6.3	-5,143	-6,670	-1,244	-1,792
6.4	-658	-748	-169	-231
6.5	-4,459	-6,060	-1,690	-1,998
6.6	3,476	571	499	631
	112	-5,625	-494	-477
6.7	477	1,659	-51	325
6.7	-858	-1,080	-76	-461
	-269	-5,046	-621	-613
6.8	-1,648	1,586	-1,534	1,694
	-1,917	-3,460	-2,155	1,081
6.9	-0.07	-0.27	-0.08	0.08

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the period from January1 to September 30, 2012 and for the period from July1 to September 30, 2012

	Note	9M-2012	9M-2011	Q3-2012	Q3-2011
T1
Consolidated net profit/loss for the period		-1,917	-3,460	-2,155	1,081
Other income components recognized in equity
Available-for-sale financial assets	7.2	237	747	228	96
Deferred taxes on these		-133	-85	-64	-40
Investments in associates	7.1	-63	-376	–	66
Currency translation differences		-1	5	18	-41
Other comprehensive income		40	291	182	81
Consolidated comprehensive income		-1,877	-3,169	-1,973	1,162

CONSOLIDATED BALANCE SHEET

as of September 30, 2012 in comparison to December 31, 2011

		Note Sept. 30, 2012 Dec. 31, 2011
T1
Assets
Non-current assets
Property, plant and equipment		655	803
Intangible assets		244	406
Receivables from related parties	9.3	1,830	–
Investments in associates	7.1	11,218	11,093
Available-for-sale financial assets	7.2	4,079	4,247
		18,026	16,549
Current assets
Trade and other receivables	7.3	10,461	6,088
Receivables from related parties		249	2,380
Available-for-sale financial assets	7.2	7,029	7,124
Current income tax assets		553	1,960
Cash and cash equivalents	7.4	2,867	16,947
		21,159	34,499
Total assets		39,185	51,048
Equity
Share capital	7.5	27,470	27,470
Additional paid-in capital	7.5	44,065	44,196
Retained earnings	7.5	-55,154	-53,276
Total equity		16,381	18,390
Liabilities
Non-current liabilities
Net assets attributable to other limited partners	7.6	1,183	1,028
Trade payables		296	414
Financial liabilities	7.7	30	48
Other provisions	7.8	98	180
Deferred income tax liabilities		797	664
		2,404	2,334
Current liabilities
Trade payables and other liabilities		6,350	14,244
Liabilities to related parties		1,601	1,801
Financial liabilities	7.7	10,211	13,592
Other provisions	7.8	518	591
Current income tax liabilities	7.9	1,720	96
		20,400	30,324
Total liabilities		22,804	32,658
Total equity and liabilities		39,185	51,048

CONSOLIDATED CASH FLOW STATEMENT

for the period from January 1 to September 30, 2012

	Note	9M-2012	9M-2011
T1
Cash flow from operating activities
Consolidated net loss for the period before share of profit of investment, interest and income taxes	8.1	-3,347	-5,689
Depreciation, amortization and impairments on non-current assets	6.4	658	748
Loss from the sale of non-current assets	6.5	24	38
Other non-cash expenses and income	8.2	1,166	149
Changes in trade and other receivables and derivative financial instruments		-5,754	-809
Changes in receivables from related parties		250	-1,038
Changes in trade payables, other liabilities and derivative financial instruments		-7,481	-585
Changes in amounts due to related parties		-132	-9
Changes in other provisions		-156	122
Interest received		115	29
Interest paid		-35	-305
Dividends and profit distributions received		457	835
Income tax refunds received		1,536	1,146
Income taxes paid		-34	-404
Net cash generated from operating activities		-12,733	-5,772
Cash flow from investing activities
Payments made for investments in:
Intangible assets and property, plant and equipment		-4	-49
Available-for-sale financial assets and investments in associates		-177	-316
Proceeds from the disposal of:
Available-for-sale financial assets and investments in associates		2,663	23
Net cash generated from investing activities		2,482	-342
Cash flow from financing activities
Transaction costs in connection with the issue of new shares		-131	–
Repayment of borrowings		-2,728	-612
Net cash generated from financing activities		-2,859	-612
Net decrease of cash and cash equivalents		-13,110	-6,726
Cash and cash equivalents on January 1		15,973	10,288
Currency translation differences		-3	4
Cash and cash equivalents on September 30	8.3	2,860	3,566

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the period from January 1 to September 30, 2012

				Other comprehensive income
	Subscribed capital	Additional paid-in capital	Retained earnings	Available-for sale financial assets	Investments in associates	Currency translation differences	Total equity
T1
Amount on January 1, 2011	12,725	45,432	-54,057	3,480	448	-54	7,974
Total net loss recorded within consolidated equity	–	–	-3,460	662	-376	5	-3,169
Amount on September 30, 2011	12,725	45,432	-57,517	4,142	72	-49	4,805
Amount on January 1, 2012	27,470	44,196	-56,957	3,695	63	-77	18,390
Total net loss recorded within consolidated equity	–	–	-1,917	104	-63	-2	-1,878
Equity issue 2011	–	-131	–	–	–	–	-131
Amount on September 30, 2012	27,470	44,065	-58,874	3,799	–	-79	16,381

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2012

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These interim financial statements as of September 30, 2012 have been prepared in accordance with the International Financial Reporting Standards (IFRS) adopted and published by the International Accounting Standards Board (IASB), as endorsed by the European Union as of September 30, 2012. As a matter of principle, Lloyd Fonds early adopts all standards and interpretations. Notwithstanding this, however, the following standards endorsed by the EU Commission were not early adopted in the first nine months of 2012:

• Revisions to IAS 1 "Presentation of the financial statements – presentation of individual items of comprehensive income" (to be applied in accounting periods commencing on or after July 1, 2012)
• Revisions to IAS 19 "Employee Benefits" (to be applied in accounting periods commencing on or after January 1, 2013)

In the third quarter of 2012, the IASB published the following revised standards, which have not been early adopted as they have not yet been endorsed by the EU Commission:

• Revisions to IFRS 1 "First time adoption of international financial reporting standards"
• Revisions to IFRS 10 "Consolidated Financial Statements"
• Revisions to IFRS 11 "Joint Arrangements"
• Revisions to IFRS 12 "Disclosure of Interests in Other Entities"
• Revisions arising from the Annual Improvement Project 2009–2011

There were no changes in any of the other accounting policies described in the notes to the consolidated financial statements as of December 31, 2011. Accordingly, these interim financial statements must be read in the light of the disclosures made in the consolidated financial statements for 2011.

In accordance with the IFRS rules (IAS 34 "Interim Financial Reporting"), these interim financial statements have been prepared in condensed form compared with the consolidated financial statements as of December 31, 2011.

2 COMPANIES CONSOLIDATED

In the first nine months of 2012, Lloyd Fonds Consulting GmbH, Hamburg, was consolidated for the first time as of the date of its incorporation in May 2012. The company's purpose is to provide financial services including the arrangement of investments, the provision of advice and the mediation of transactions in accordance with the German Banking Act. The first-time consolidation of this company did not have any material effect on the Lloyd Fonds Group's net assets, financial position or results of operation.

Lloyd Fonds Vermögensgarant GmbH & Co. KG, Hamburg, was liquidated in March 2012. The liquidation of this company did not have any material effect on the Lloyd Fonds Group's net assets, financial position or results of operation.

The companies consolidated now comprise the Parent Company as well as 22 subsidiaries.

3 CAPITAL MANAGEMENT

The objectives of the Lloyd Fonds Group with regard to capital management are to maintain an adequate level of equity on a sustained basis and to generate an appropriate return on the capital employed. In this connection, top priority is given to the Group's credit rating. The Group monitors its capital on the basis of absolute amounts in the light of the equity ratio. Future movements in capital and possible capital requirements are identified on the basis of an integrated planning model for the coming four years.

As a matter of principle, Lloyd Fonds AG manages its capital structure via its dividend policy. In the last two years, no dividend was distributed on account of the Company's earnings situation. Moreover, no dividends were permitted to be paid out until full liability release had been achieved (January 10, 2012).

As the Group's equity had come under considerable pressure in earlier years as a result of the crisis, 14,744,560 new shares were issued at the end of 2011 to improve its equity resources.

As of September 30, 2012, the Lloyd Fonds Group's equity capital stood at T€ 16,381, down from T€ 18,390 at the end of the previous year. The equity ratio came to 41.8% as of the reporting date (December 31, 2011: 36.0%).

4 CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

All estimates and assumptions are continually evaluated and are based on historical experience and other factors including expectations of future events which are believed to be probable under the circumstances. The Group makes estimates and assumptions concerning the future. The resultant accounting estimates may deviate from the related actual results. The following section describes changes to the estimates and assumptions liable to exert a material effect on the measurement of assets and liabilities.

As of the reporting date, Lloyd Fonds had received a specific offer for the sale of the four assets included in TVO Income Portfolio L.P. For this reason, a further impairment test was performed. On the basis of these market values, remeasurement gains of T€ 1,930 were recorded on the investment in TVO Income Portfolio L. P. Taking account of the current measurement according to the equity method and currency translation adjustments, the residual carrying amount as of the reporting date came to T€ 6,452. As a result of new events occurring after the reporting date, the purchase price on the basis of which the value of the shares was calculated can no longer be realized in full. However, the effect on the Company's earnings would be only negligible as the lending bank is expected to waive loan repayments.

The loan to KALP GmbH of T€ 1,830 has been reclassified in the current year as a non-current receivable from related companies. As of December 31, 2011, it had been reported as a current receivable from related companies (T€ 1,663).

5 SEGMENT INFORMATION

Following the equity issue at the end of 2011 and the execution of the liability release for the Lloyd Fonds Group, the business segments were redefined in the first quarter of 2012. Segment reporting as well as the figures for the previous year have been adjusted to match the new organizational structure.

The following reportable segments can be identified on the basis of the Lloyd Fonds Group's internal reporting system:

Shipping

• Purchase and structuring of assets in the shipping and secondary-market ship fund segments
• Financing of assets by arranging debt capital
• Earning of investment income
• Measures to ensure efficient management and supervision of the fund companies
• Integration in ongoing fund reporting
• Preparation of the meetings of the companies' advisory councils
• Support for trustee and submission of information of decision-making information
• Monitoring of existing fund companies' liquidity to identify any risks at an early stage and to take any necessary countermeasures
• Integration in the asset selling process including the winding-down of the corresponding fund companies

Real estate

• Purchase and structuring of assets in the real estate segment
• Other activities similar to those in the "Shipping" segment

Energy

• Purchase and structuring of assets in the energy segment
• Other activities similar to those in the "Shipping" segment

Investments and alternative assets

• Purchase and structuring of assets and funds which do not form part of Lloyd Fonds' core business (e. g. aircraft funds, traded endowment policies, private equity funds)
• Other activities similar to those in the "Shipping" segment
• Monitoring and coordination of the Lloyd Fonds Group's material investments.

Sales and marketing

• Sale of the Group's investment products
• Execution of sales activities such as advertising and marketing

Trusteeship

• Handling of new issues on a trust basis
• Management of the subscribers trust accounts
• Provision of information and services for trustors

The "All other segments" column primarily comprises the Lloyd Fonds Group's management and central activities. As they do not generate any revenues as defined by IFRS 8, they are by definition not separate operating segments and are therefore pooled in this category.

Segment profit/loss for the first nine months and the third quarter of 2012 breaks down as follows:

9M-2012	Shipping	Real estate	Energy	Investments & alternative Assets	Trusteeship	Sales & marketing	All other segments	Total
T1
External sales	1,949	484	104	190	5,882	1,438	–	10,047
Other operating income	89	24	8	13	189	74	489	886
Cost of sales I	-741	–	–	–	-647	-1,763	–	-3,151
Cost of sales II	-10	-6	-2	-10	-24	-131	-164	-347
Personnel expenses	-561	-290	-192	-334	-721	-839	-2,206	-5,143
Other operating expenses	-997	-251	-37	-177	-1,235	-308	-1,993	-4,998
Share of profit of associates	42	1,929	–	1,413	–	–	92	3,476
Depreciation, amortization and impairments	-284	-12	–	-6	-139	–	-217	-658
EBIT	-513	1,878	-119	1,089	3,305	-1,529	-3,999	112
Net finance income/expense	-30	-481	–	-18	49	3	96	-381
Net profit/loss before taxes	-543	1,397	-119	1,071	3,354	-1,526	-3,903	-269

				Investments
Q3–2012	Shipping	Real estate	Energy	& alternative Assets	Trusteeship	Sales & marketing	All other segments	Total
T1
External sales	587	123	4	38	1,924	227	–	2,903
Other operating income	50	3	–	5	60	16	342	476
Cost of sales I	-255	–	–	–	-240	-298	–	-793
Cost of sales II	-1	-1	-1	-1	-12	-25	-63	-104
Personnel expenses	-213	-90	10	-94	-148	-280	-429	-1,244
Other operating expenses	-584	-138	-1	-64	-476	-129	-670	-2,062
Share of profit of associates	34	403	–	-51	–	–	113	499
Depreciation, amortization and impairments	-57	-4	–	-6	-47	–	-55	-169
EBIT	-439	296	12	-173	1,061	-489	-762	-494
Net finance income/expense	-30	296	–	-4	29	–	-418	-127
Net profit/loss before taxes	-469	592	12	-177	1,090	-489	-1,180	-621

				Investments & alternative		Sales &	All other
9M-2011	Shipping	Real estate	Energy	Assets	Trusteeship	marketing	segments	Total
T1
External sales	2,107	443	238	205	5,630	1,889	4	10,516
Other operating income	114	95	7	45	67	150	-99	379
Cost of sales I	-679	-2	–	–	-534	-2,019	–	-3,234
Cost of sales II	-14	-19	-16	-15	-136	-464	-127	-791
Personnel expenses	-979	-670	-332	-222	-844	-1,199	-2,424	-6,670
Other operating expenses	-569	-535	-23	-421	-493	-504	-3,103	-5,648
Share of profit of associates	290	-85	–	-487	6	–	847	571
Depreciation, amortization and impairments	-54	-25	–	-68	-183	–	-418	-748
EBIT	216	-798	-126	-963	3,513	-2,147	-5,320	-5,625
Net finance income/expense	–	-39	–	5	12	-42	643	579
Net profit/loss before taxes	216	-837	-126	-958	3,525	-2,189	-4,677	-5,046

Q3–2011	Shipping	Real estate	Energy	Investments & alternative Assets	Trusteeship	Sales & marketing	All other segments	Total
T1
External sales	719	146	232	164	1,957	1,305	6	4,529
Other operating income	77	78	2	44	37	61	-160	139
Cost of sales I	-232	–	–	–	-178	-1,206	–	-1,616
Cost of sales II	-5	-1	-4	-6	-60	-125	-43	-244
Personnel expenses	-236	-195	-111	-74	-263	-323	-590	-1,792
Other operating expenses	-182	-110	-7	-161	-145	-150	-1,138	-1,893
Share of profit of associates	137	483	–	-329	–	–	340	631
Depreciation, amortization and impairments	-30	-25	–	69	-50	–	-195	-231
EBIT	248	376	112	-293	1,298	-438	-1,780	-477
Net finance income/expense	36	-838	–	14	19	14	619	-136
Net profit/loss before taxes	284	-462	112	-279	1,317	-424	-1,161	-613

The cost of sales is broken down into cost of sales I and cost of sales II in accordance with the internal reporting structure. Cost of sales I is for the most part equivalent to the cost of sales as shown in the consolidated income statement (see Note 2). Cost of sales II is included in other operating income/expenses in the consolidated income statement.

Lloyd Fonds' internal reporting system does not include any provision for breaking down assets and liabilities by segment as management does not consider this data to be relevant for managing the Group. Accordingly, these disclosures have been dispensed with.

6 NOTES ON THE CONSOLIDATED INCOME STATEMENT

6.1 SALES

Composition:

		9M-2012 9M-2011	Q3-2012	Q3-2011
T1
Placement of equity	1,443	1,889	230	1,305
Project organization	211	518	20	394
Arrangement of financing	334	234	70	106
Trusteeship	5,882	5,630	1,924	1,957
Managment fees	2,177	2,226	659	767
Miscellaneous	–	19	–	–
	10,047	10,516	2,903	4,529

Sales dropped by T€ 469 over the first nine months of the previous year from T€ 10,516 to T€ 10,047 chiefly as a result of the low placement volumes in the first nine months of 2012.

Reference should be made to the section on results of operations in the interim management report for further information on the breakdown of and changes in sales.

6.2 COST OF SALES

Composition:

		9M-2012 9M-2011	Q3-2012	Q3-2011
T1
Commission	1,751	1,861	297	1,148
Cost of services bought	1,400	1,373	496	468
	3,151	3,234	793	1,616

Commission was paid in connection with the placement of equity. The cost of other services bought primarily relates to management services utilized and fund-related marketing and retailing costs.

6.3 PERSONNEL COSTS

Composition:

	5,143	6,670	1,244	1,792
Post-retirement benefit costs	7	9	1	2
Social security	498	719	155	219
Wages and salaries	4,638	5,942	1,088	1,571
T1
		9M-2012 9M-2011	Q3-2012	Q3-2011

The reduction in personnel costs from T€ 6,670 to T€ 5,143 is chiefly due to the decline in the average head count from 110 in the first nine months of 2011 to 72 in the period under review. The opposite effect arose from settlement payments and variable remuneration of T€ 76.

6.4 DEPRECIATION, AMORTIZATION AND IMPAIRMENT LOSSES

Composition:

		Q3-2012	Q3-2011
152	193	51	59
162	289	54	85
314	482	105	144
344	266	64	87
658	748	169	231
		9M-2012 9M-2011

6.5 OTHER OPERATING RESULT

Composition:

		9M-2012 9M-2011	Q3-2012	Q3-2011
T1
Other operating income
Derecognition of liabilities	319	41	231	14
Rentals	245	27	82	9
Remuneration in kind	106	115	35	37
Income from recharged expenses	90	171	58	77
Reversal of impairments on receivables	36	–	–	–
Other income	90	25	70	2
	886	379	476	139
Other operating expenses
Impairments on ­receivables and unrecoverable receivables	-1,570	-870	-859	-313
Financial statement, legal and consulting costs	-1,033	-1,865	-421	-634
Rentals, ancillary rental costs, cost of premises and maintenance	-818	-958	-277	-367
Retailing support and subscriber relations	-493	-927	-184	-316
Office supplies, IT costs and communications	-467	-635	-136	-191
Motor vehicle and travel costs	-307	-484	-91	-132
Other personnel expenses	-132	-85	-70	-19
Insurance and levies	-109	-121	-31	-32
Costs assumed for fund companies	-108	-74	-42	-8
Non-deductible input tax	-44	-140	-7	-59
Losses from the sale of equity investments	-24	-38	–	–
Other expenses	-240	-242	-48	-66
	-5,345	-6,439	-2,166	-2,137
Net other operating income/expense	-4,459	-6,060	-1,690	-1,998

6.6 SHARE OF PROFIT OF ASSOCIATES

Composition:

		9M-2012 9M-2011	Q3-2012	Q3-2011
T1
TVO Income Portfolio L.P., El Paso, USA	1,929	-141	403	483
Feedback AG, Hamburg	1,209	-312	22	-88
KALP GmbH, Böel	-135	-521	-71	-238
Miscellaneous	473	1,545	145	474
	3,476	571	499	631

The net profit from TVO Income Portfolio L.P., United States, is primarily due to the remeasurement gains of T€ 1,930 recorded on the fair value of the investment.

The share of profits of Feedback AG (T€ 1,209) is particularly due to the proceeds from the sale of the shares held in this company.

6.7 NET FINANCIAL RESULT

Composition:

		9M-2012 9M-2011	Q3-2012	Q3-2011
T1
Net profit affiliated entities	23	207	–	56
Net foreign-currency losses/ gains	17	507	173	-266
Net interest expense	-421	-135	-300	74
	-381	579	-127	-136

Net investment income chiefly comprises dividends received from non-consolidated affiliated companies. Reference should be made to the analysis of the Group's results of operations in the management report for further information on changes in finance expense and finance income.

The decline in net other operating expense from T€ 6,060 to T€ 4,459 particularly reflects the cost cuts implemented. Legal and consulting costs in particular declined by T€ 832 or 44.6% over the comparison period.

The opposite effect arose from heightened impairment losses on receivables and bad debts, among other things.

6.8 INCOME TAX EXPENSE

Income tax expense comprises income taxes paid or owed as well as deferred income taxes. Taxes comprise corporate tax plus the solidarity surcharge and trade tax.

The net tax expense of T€ 1,648 arising in the period under review is chiefly due to the conclusion of proceedings with the tax authorities. More details can be found in the comments on the "Cyprus tax risks" in the risk report included in the management report. Only minor tax expense arose in the period under review due to the income tax fiscal union established between Lloyd Fonds AG (dominant company) and Lloyd Treuhand GmbH (subordinate company). The tax refund of T€ 1,586 arising in the period under review results from income from the derecognition of tax liabilities of T€ 837 in connection with tax assessments for prior years among other things.

6.9 EARNINGS/LOSS PER SHARE

Earnings/loss per share are calculated by dividing profit or loss attributable to the ordinary equity holders by the average number of ordinary shares outstanding during the period under review. No dilution effects arose either in the first nine months of 2012 or in the same period in the previous year.

		9M-2012 9M-2011	Q3-2012	Q3-2011
Profit/loss attributable to equity holders in Parent Company (T1)	-1,917	-3,460	-2,155	1,081
Average number of shares issued (in thousands)	27,470	12,725	27,470	12,725
Basic earnings/loss per share (5 per Share)	-0.07	-0.27	-0.08	0.08

In the first nine months of 2011, a loss of € 0.13 per share had been sustained on the basis of the average number of shares outstanding in the period under review (27,469,927).

7 NOTES ON THE CONSOLIDATED BALANCE SHEET

The following section describes the main items of the balance sheet and selected changes.

7.1 INVESTMENTS IN ASSOCIATES

There are a total of 132 associates on which the Lloyd Fonds Group exerts material influence. These primarily comprise investments in the limited-partner entities and project companies which Lloyd Fonds holds together with its shipping company partners. This item also includes the Group's investments in TVO Income Portfolio L.P., El Paso, United States (T€ 6,452) and KALP GmbH, Böel (T€ 1,353).

Net other earnings have been duly adjusted.

The material assets of TVO Income Portfolio L.P. are to be sold in the fourth quarter of 2012. In this connection, impairments of T€ 1,930 were reversed in the period under review (see Note 4).

The opposite effect arose from the sale of all the shares in Feedback AG, Hamburg.

7.2 AVAILABLE-FOR-SALE FINANCIAL ASSETS

Available-for-sale financial assets comprise a total of 182 investments as of reporting date. These are predominantly shares which Lloyd Fonds holds in its own funds as the founding limited partner as well as affiliated companies, e.g. shelf or project companies, which are not consolidated for reasons of immateriality.

Net other earnings have been duly adjusted.

7.3 TRADE AND OTHER RECEIVABLES

Composition:

	Sept. 30, 2012 Dec. 31, 2011
T1
Receivables from issuing business	3,013	3,563
Receivables from trusteeship	1,692	997
Other receivables and assets	5,756	1,528
	10,461	6,088

The increase in receivables from trusteeship management relates to income arising in the period under review but not received until the following period.

The increase in other receivables chiefly reflects short-term loans granted to fund entities (T€ 5,141).

7.4 CASH AND CASH EQUIVALENTS

The changes in cash and cash equivalents are analyzed in the consolidated cash flow statement. Reference should be made to Note 8.3 for the breakdown.

7.5 EQUITY

The composition of and changes in the Group's equity are analyzed in the consolidated statement of changes in equity.

In the period under review, transaction costs of T€ 131 arose in connection with the previous year's equity issue, resulting in a reduction in the share premium in accordance with IAS 32.35 et seq.

7.6 NET ASSET VALUE ATTRIBUTABLE TO OTHER LIMITED PARTNERS

This item results from the inclusion of Premium Portfolio Austria in Lloyd Fonds' consolidated financial statements. It comprises the shares of those limited partners who are not part of the Lloyd Fonds Group. As these are puttable financial instruments, they are reported under non-current financial liabilities. They were measured at their fair value on the date of initial consolidation

and will be reported at amortized cost using the effective interest method in later periods, with the resultant expenses or income recorded within net finance income/expense.

7.7 BORROWINGS

Non-current financial liabilities comprise liabilities under a finance lease for a server system.

Current financial liabilities include a loan in a nominal amount of TUS\$ 9,000 (no change compared with December 31, 2011) or T€ 6,959 (December 31, 2011: T€ 6,956) for financing the investment in TVO Income Portfolio L.P. Moreover, current financial liabilities include the liabilities arising from the finance for the investments in the target funds taken over from Premium Portfolio Austria amounting to T€ 3,012 (December 31, 2011: T€ 5,622).

The reduction in liabilities is due to loan repayments made using the proceeds from the sale of the shares in Feedback, which had been pledged as collateral to the lending bank.

The current account overdrafts of T€ 967 reported within financial liabilities as of December 31, 2011 were repaid in full as of the reporting date.

7.8 OTHER PROVISIONS

As of the reporting date, other provisions primarily comprise amounts for pending repayments of dividends to ship entities (T€ 372). In addition, they include amounts for pending losses of T€ 212 arising from the subletting of office space. Of this, an amount of T€ 98 is recorded as non-current provisions. The remaining amount chiefly comprises provisions for uncertain liabilities due for settlement in less than one year.

7.9 CURRENT INCOME TAX LIABILITIES

Current income taxes chiefly comprise tax liabilities arising from the conclusion of proceedings with the tax authorities. More details can be found in the comments on the "Cyprus tax risks" in the risk report included in the management report.

8 NOTES ON THE CONSOLIDATED CASH FLOW STATEMENT

8.1 RECONCILIATION WITH LOSS FOR THE PERIOD

	Note	9M-2012	9M-2011
T1
Net profit/loss from ordinary activities		112	-5,625
Share of profit of associates	6.6	-3,476	-571
Net foreign-currency losses/ gains	6.7	17	507
		-3,347	-5,689

8.2 OTHER NON-CASH TRANSACTIONS

Composition:

	Note	9M-2012	9M-2011
T1
Impairments on receivables and unrecoverable receivables	6.5	1,570	870
Unrealized foreign-currency gains		-49	-680
Income from the reversal of impairments on receivables	6.5	-36	–
Derecognition of liabilities	6.5	-319	-41
		1,166	149

8.3 COMPOSITION OF CASH AND CASH EQUIVALENTS

Composition for the purposes of the cash flow statement:

		Sept. 30, 2012 Sept. 30, 2011
T1
Cash at banks	2,864	4,808
Cash in hand	3	2
Bank overdrafts	–	-957
Cash at banks subject to drawing ­restrictions	-7	-287
	2,860	3,566

9 OTHER DISCLOSURES

9.1 CONTINGENCIES

The contingencies recognized as of September 30, 2012 chiefly comprise increased liable capital contributions, a bank guarantee for the "Holland Utrecht" fund as well as the issue of a letter of comfort in favor of the "Bremen Domshof" fund. Fixed-liability guarantees are recognized only in an amount reflecting the outstanding value of the principal debt. As of September 30, 2012, the Group's contingent liabilities totaled T€ 9,448 (December 31, 2011: T€ 86,128). As of December 31, 2011, compensation claims of T€ 37,498 arose from joint and several liability towards third parties.

As part of trust business, shares of T€ 1,663,002 (December 31, 2011: T€ 1,648,096) are managed on the Company's own behalf but for the account of various trustors. In addition, trust accounts of T€ 5,012 (December 31, 2011: T€ 6,528) are maintained on the Company's own behalf but for the account of various trustors.

Lloyd Treuhand has in some cases been entered in the commercial register as the limited partner in trust for subscribers with the corresponding liable amount attributable to such subscribers. In accordance with Sections 171, 172 IV of the German Commercial Code, Lloyd Treuhand is fundamentally liable for any liquidity surpluses which have been distributed but are not backed by profits. The amount by which the distribution is less than the liable amount entered in the commercial register may be subject to reimbursement by Lloyd Treuhand. Under the terms of the trusteeship contract, Lloyd Treuhand is in turn entitled to recover this amount from the subscriber in question. The Management Board does not consider the possible outflow of resources as a result of such recourse claims to be likely.

9.2 OPERATING LEASE COMMITMENTS

Analysis of obligations under leases:

9.3 RELATED-PARTY TRANSACTIONS

		Sept. 30, 2012 Dec. 31, 2011
T1
Office space	6,880	7,600
Motor vehicles	245	298
Miscellaneous	43	59
	7,168	7,957

As of September 30, 2012, the non-current loan granted to KALP GmbH, Böel, was valued at T€ 1,830. Other than this, there

basis of current information a reduction in the purchase price would be offset by a higher loan waiver on the part of the lending bank.

No other events materially affecting the Group's net assets, financial position or results of operations occurred after the reporting date.

Hamburg, November 28, 2012

The Management Board

Dr. Torsten Teichert Dr. Joachim Seeler

RESPONSIBILITY STATEMENT

9.4 EVENTS AFTER THE BALANCE SHEET DATE

were no material transactions with related parties.

On October 17, the Management Board of Lloyd Fonds AG decided with the Supervisory Board's approval to switch from the Prime Standard of the regulated market to the Entry Standard of the Frankfurt Stock Exchange. Accordingly, the Company assumes that it will be admitted to the Entry Standard of the Frankfurt Stock Exchange in April 2013. The reason for the reclassification is to reduce expenses and the organizational resources required for inclusion in the regulated market. At the same time, the Entry Standard ensures a high degree of transparency and tradeability for the shareholders.

The carrying amount of the share in TVO recognized as of September 30, 2012 is too high as in the light of information currently available the value on the basis of which the value was calculated can no longer be realized in full. However, this has only a minor impact on the Group's earnings as on the "To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year."

Hamburg, November 28, 2012

The Management Board

Dr. Torsten Teichert Dr. Joachim Seeler

CERTIFICATION OF REVIEW BY AUDITORS

TO LLOYD FONDS AG, HAMBURG

We have reviewed the condensed consolidated interim financial statements – comprising the condensed statement of financial positions, condensed income statement and condensed statement of comprehensive income, condensed statement of cash flow, condensed statement of changes in equity and selected explanatory notes – and the interim group management report of Lloyd Fonds AG, Hamburg, for the period from January 1 to September 2012, which are part of the quarterly financial report pursuant to § (Article) 37x Abs. (paragraph) 3 WpHG ("Wertpapierhandelsgesetz": German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with the IFRSs applicable to interim financial reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is the responsibility of the parent Company's Board of Managing Directors. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim group management report based on our review.

We conducted our review of the condensed consolidated interim financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany – IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRSs applicable to interim financial reporting as adopted by the EU and that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot express an audit opinion.

Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRSs applicable to interim financial reporting as adopted by the EU or that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.

Hamburg, November 28, 2012

TPW GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

signed signed Roger Hönig Britta Martens Wirtschaftsprüfer Wirtschaftsprüferin (German Public Auditor) (German Public Auditor)

EDITOR

Lloyd Fonds AG Amelungstraße 8–10 20354 Hamburg Germany

CONTACT

Marcel Wiskow Investor Relations

Phone: +49 (0)40/32 56 78-174 Fax: +49 (0)40/32 56 78-917 E-Mail: ir@lloydfonds.de

PICTURE CREDITS

Lloyd Fonds AG

This english language version of the interim report is a convenience translation. In the event of any debt, the German version is to apply.

Lloyd Fonds AG · Amelungstraße 8–10 · 20354 Hamburg · Phone +49 (0)40 325678-0 · Fax +49 (0)40 325678-99 · www.lloydfonds.de