Ad-hoc | 1 February 2005 18:26

DEWB AG: Business Year 2004 Results

Ad hoc announcement §15 WpHG Business Year 2004 Results; Executive Board Changes DEWB AG: Business Year 2004 Results Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— DEWB posts sales of 5 million Euros and a net loss of 14.9 million Euros for the 2004 business year; major transactions not yet reflected in sales Dr. Dietmar Kubis, spokesperson for the Executive Board, leaves DEWB DEWB streamlines its structures Jena, 1. February 2005. DEWB AG (Deutsche Effecten- und Wechsel- Beteiligungsgesellschaft AG, ISIN DE0008041005) posted sales of 5.0 million Euros in the 2004 business year. The sharp fall in sales by comparison with the previous year (30.7 million Euros) is attributable on the one side to the sale of fewer and smaller portfolio companies than in the previous year and, secondly, to the fact that the two major transactions during the course of the year – the investment of micom GmbH into the listed firm of Nexus AG and the investment of the assets of Munich Biotech AG into the listed MediGene AG with a total transaction volume of 11.0 million Euros – could not be recorded as sales. These must be shown in the balance sheet as an asset swap. Since the results achieved by private equity companies depend significantly upon a few investment sales and these sales can not be spread evenly throughout all the business years, a comparison of the sales on a period by period basis has little relevance. Result determined by lack of sales. Earnings Before Interest and Tax (EBIT) for 2004 are -12.3 million Euros (previous year +0.04 million Euros). The key factors in the difference compared with the previous year are in particular transactions which did not produce sales and therefore earnings, the costs in the sum of 0.4 million Euros for the capital increase as well as net value adjustments of 9.9 million Euros which were markedly higher than the figure for the previous year (5.1 million Euros). After taxes, interest and extraordinary expenses the company has posted a deficit for the period of 14.9 million Euros as at 31 December 2004. Earnings per share are -0.98 Euros based on the 15,230,000 bearer non-par shares issued. As at the qualifying date in the previous year 13,227,816 bearer non-par shares had been issued, the comparison statistic was therefore -0.12 Euros. Stable balance sheet structure. DEWB’s balance sheet total as at 31 December 2004 was 83.6 million Euros, representing a fall of 20.1 percent compared with the previous year. The capital increase carried out in the second quarter, plus the above-mentioned asset swaps for Nexus and MediGene shares respectively, resulted in liquid and equivalent assets of 15.9 million Euros as at 31 December 2004. This represents a 19.0 percent share of the balance sheet total (previous year 19.1 percent). The book values of securities shown in the balance sheet in accordance with the strict principle of the lower of cost or market value totalled 12.3 million Euros as at the qualifying date; the market value of these securities was approx. 13.9 million Euros. The key balance sheet ratios on the liabilities side of the balance sheet also remained stable. Although shareholders’ equity fell by 12.3 percent from 37.4 million Euros as at the end of 2003 to 32.8 million Euros as at 31 December 2004, liabilities were simultaneously reduced by 28.6 percent from 65.6 million Euros to 46.8 million Euros, the shareholders’ equity quota consequently increased from 35.7 percent to 39.2 percent as a result of the reduction in the balance sheet total. DEWB invests 15.7 million Euros. Through investments totalling 15.7 million Euros, in 2004 DEWB increased the share of its invested capital in more mature companies in the expansion phase and securities to a total of 91%. Companies in the seed and start-up phase accounted for just 9% of the invested capital. As at 31 December 2004 DEWB had assets of 83.6 million Euros under management. The key item in this respect, at 74.1 million euros, was the capital invested in venture capital and securities. Dr. Dietmar Kubis leaves the DEWB Executive Board. Dr. Dietmar Kubis, Spokesperson for the Executive Board of DEWB AG, has tendered his resignation from the Executive Board of DEWB with immediate effect. Dr. Kubis was responsible for venture capital management, this area will now in future be the responsibility of Sabine Ahlers who has been a member of the Executive Board since the beginning of 2000 and was previously responsible for finances and exit management. DEWB intends to significantly streamline its structures. Over the past years DEWB has pursued the aim of achieving a substantial stake in its portfolio companies. As a result, the average shareholding has risen from 24 percent at the end of 2003 to 39 percent at the end of 2004. This has been accompanied by a marked reduction in the number of portfolio companies to 21 as at the end of 2004. Against this background DEWB will be able to manage its active ownership approach with significantly fewer employees than in the past. At the end of 2004 the company employed 27 personnel. The plans provide for a cutback in the number of employees to 10 to 12 by the end of 2005. This should in future lead to a marked reduction in the annual burden of fixed costs of approx. 4 million Euros in 2004. DEWB has already set aside provisions for structural adjustments in order to meet the necessary costs for this purpose, in particular settlements in the sum of 1.5 million Euros which have been processed in the 2004 result. The full 2004 annual report of DEWB AG will be presented at the balance sheet press conference on 3 March 2005 in Frankfurt am Main. Contact: Dr. Stefan Stenzel Telefon: +49 – 3641 – 65 21 67 Telefax: +49 – 3641 – 65 21 57 E-Mail: stefan.stenzel@dewb-vc.com Internet: http://www.dewb-vc.com Deutsche Effecten- und Wechsel- Beteiligungsges. AG Carl-Zeiß-Platz 16 07743 Jena Deutschland ISIN: DE0008041005 WKN: 804100 Listed: Amtlicher Markt in Frankfurt (Prime Standard) und Freiverkehr in Stuttgart End of ad hoc announcement (c)DGAP 01.02.2005 011826 Feb 05