Conference Magazine 2011 - Deutsches Eigenkapitalforum

Deutsches Eigenkapitalforum 21 – 23 November 2011 Frankfurt / Main

»Entrepreneurs meet investors«

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Issue No. 2

Legal • Capital Markets • Industries & Sectors • Financing • Bond Issuance • Top 50 Capital Seeking Companies • Sponsors & Partners • Forum Programme • Exhibitors’ Index

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Deutsches Eigenkapitalforum 2011

Editorial

Dear Readers,

The ultimate purpose of exchanges is to serve the real economy. In today’s volatile markets, this is truer than ever. New capital requirement regimes such as Basel III further increase the pressure companies face in getting sufficient financial resources at affordable conditions. The best method for giving companies greater strategic leeway in such an environment is giving them better access to equity capital. And this is exactly what exchanges are doing. A new study conducted on behalf of Deutsches Aktieninstitut, Commerzbank and Deutsche Börse has demonstrated once more: small and medium-sized companies are much better prepared for raising new capital at exchanges than many of them seem to think. Around 1,250 German “Mittelstand” companies are economically and financially in a position to go public, if one considers key indicators such as turnover, growth, and return on capital. We at Deutsche Börse support this – by providing companies with a wide variety of ways of going public, tailor-made to suit the stage of the life cycle they are in: first, the Entry Standard for newcomers, then the more demanding General Standard, and finally the sophisticated Prime Standard in line with the most advanced global listing standards. And a precondition for acting responsibly on capital markets is information, guidance and advice – as provided, for example, at this year’s German Equity Forum in Frankfurt. One of “Mittelstand” entrepreneurs’ main concerns is the supposed loss of control after floatation of the company. This is one of the reasons why we started a new market providing an alternative way of gaining access to the capital market at the beginning of this year, which provides for a “temporary” listing: Since February 2011, small and medium-sized enterprises and growing start-ups can issue bonds in the Entry Standard. This is attractive especially in times when low interest rates on government bonds encourage investors to look for corporate bonds. However, in the long run, the potential in equity capital remains huge – witness the vibrant activity on our primary markets during the calmer first half of the year: the total issue volume reached around EUR 1.3 billion, with 120 new

Dr. Reto Francioni

admissions, seven of them in the Prime Standard, one in the General Standard, and three in the Entry Standard. In addition, capital increases reached a volume of nearly EUR 19 billion. Joining the Frankfurt Stock Exchange as an issuer means gaining direct access to professional investors worldwide, with around 250 international trading participants all over Europe, coordinated from the headquarters of firms in financial centres all over the globe. Deutsche Börse offers, as another recent study by Prof. Christoph Kaserer from Technische Universität Munich and Prof. Dirk Schiereck from Technische Universität Darmstadt has found out, the best listing conditions in Europe. I am confident that this year’s German Equity Forum, which is accompanied with background information by this new conference magazine, will make you reconsider the financial options you have in front of you. Sincerely yours,

Dr. Reto Francioni CEO Deutsche Börse AG

Deutsches Eigenkapitalforum 2011

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Content

1 Editorial Dr. Reto Francioni, Deutsche Börse

Introduction 6 Sustainability vs. Return on Investment On the situation with sustainable capital investments in international financial markets Katarin Wagner, HSBC Trinkaus & Burkhardt 10 Public and private venture capital as an impetus for new technologies The ERP START-UP Fund as an example Werner Oerter, KfW Mittelstandsbank 12 The “Mittelstand” (SMEs) needs a partner Comprehensive capital market and financing support for greater returns Johann Ostermair, Silvia Quandt & Cie. 14 Turkish Markets Appeal to Investors and Companies Hüseyin Erkan, Istanbul Stock Exchange Chairman & CEO 16 Best practice in investor relations IR is about the stock price Steve Kelly, Thomson Reuters Extel

Legal 20 Friend or foe? The influence of proxy advisors on resolutions of the shareholders’ meeting Christoph F. Vaupel, Dr. Lars-Gerrit Lüßmann, Taylor Wessing 22 Can confidence in Chinese accounts be increased? A brief comment on China SOX and their impact on investor confidence Dr. Gebhard Zemke, Tim Sichting, BDO 24 More to come Good corporate governance becomes more and more important Christian Orth, Ernst & Young 28 Close the gap A qualification standard for board members Gerhard Bauer, Capital Markets Academy

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Deutsches Eigenkapitalforum 2011

Financing 30 What does German “Mittelstand” really want? A survey provides evidence that German SMEs are still sceptical vis-à-vis stock markets Dr. Gerrit Fey, Dr. Norbert Kuhn, Deutsches Aktieninstitut 34 Choosing a listing venue to raise equity or debt Getting it right for entrepreneurs, investors and shareholders Alexander von Preysing, Elisabeth Plakinger, Deutsche Börse Group 38 Efficient Markets? How trading patterns increase the cost of equity capital Volker Potthoff, CMS Hasche Sigle 42 Crucial Success Factors in SME Financing How the German “Mittelstand” can prepare for a successful financing process Markus Kurzhals, Arndt Rautenberg, RoelfsPartner 46 Financing alternatives for “Mittelstand” companies Choosing the right financing instrument and diversification level Kai Frömert, Arno Fuchs, FCF Fox Corporate Finance 50 Shares, convertibles, bonds and the like What financing alternatives are currently available in Germany to smaller companies? Dr. Dietmar Schieber, Close Brothers Seydler Bank

Special: Bond Issuance 54 “Helping bond issuers be ‘fit’ for accessing the capital markets” Interview with Tilo Kraus, Head of Capital Markets & Derivatives, IKB Deutsche Industriebank 56 Procedure and challenges of bond issues Financing through bond issues on the capital market is not rocket science Dr. Anne de Boer, GSK Stockmann + Kollegen

Content

60 Corporate bonds go “Prime” The Prime Standard for corporate bonds Barbara Georg, Michael Rieß, Deutsche Börse 62 “The pipeline is still full to bursting” Interview with Axel Haubrok, Managing Director, Haubrok Investor Relations

Organizer, Co-Initiator & Sponsors Organizer & Co-Initiator 88 Deutsche Börse, KfW Bankengruppe 89 Ernst & Young Wirtschaftsprüfungsgesellschaft

Main Sponsors Capital Markets 64 Confidence has to be restored European IPO markets, quo vadis? Johannes Borsche, Johannes Koehler, Morgan Stanley 66 The Dual Track Process An IPO as a real alternative to a trade sale or secondary buy-out Christoph Vigelius, equinet Bank 70 “The complexity of a Dual Track demands a lot of experience and intuition” Interview with Michael Oppermann, Partner, Head of Financial Accounting and Advisory Services, Ernst & Young 72 “Despite stricter regulations, the German stock market is still popular for easy listing requirements” Interview with Marc Renell, Management Board, Renell Wertpapierhandelsbank

90 BERENBERG BANK, Close Brothers Seydler Bank, DZ BANK 91 equinet Bank 92 FCF Fox Corporate Finance GmbH, Istanbul Stock Exchange, Jefferies International Limited 93 LBBW 94 Renell Wertpapierhandelsbank, Silvia Quandt & Cie., Thomson Reuters

Sponsors 96 BDO AG Wirtschaftsprüfungsgesellschaft (96), CMS Hasche Sigle (96), GSK STOCKMANN + KOLLEGEN (96), Haubrok (97), HSBC Trinkaus & Burkhardt (98), IKB Deutsche Industriebank (98), Morgan Stanley (98), RölfsPartner (100), Taylor Wessing (100), WestLB (100)

Partners 102 bwcon Baden Württemberg: connected (102), Creathor Venture Management (102), DVFA (102), HPE Holland Private Equity (103), PvF Investor Relations (103), STEP Award (103)

Network Partners Industries & Sectors 76 LifeScience Forum Innovative strategies at a time of growing funding shortfall Dr. Christa Bähr, DZ BANK 78 Managing REITs in challenging times Bright future after dragging start Olivier Elamine, Michael Gallagher, Barbara Georg, Claus Hermuth, Thomas Körfgen, Maren Lorth, Hans Richard Schmitz, Frank Schaich 82 Is cleantech still an investible theme? With cleantech stocks down by more than 40% in 2011, investors increasingly ask this question Dr. Martina Ecker, Jefferies International 84 Clean energy and the capital market The big energy-turnaround: gamble or sound investment story? Heike Härtl, Dr. Stefan Steib, Landesbank Baden-Württemberg

104 BVI (104), BVK (104), BVMW (104), DIRK – Deutscher Investor Relations Verband (105), High-Tech Gründerfonds (105), Zero2IPO Group (105)

Media Partners 106 BIOCOM (106), BOND MAGAZINE - Institutional Investment Publishing (106), Börsen Radio Network (106), Börsen-Zeitung (107), business new europe (bne) (107), CNBC-e (108), DAF Deutsches Anleger Fernsehen (108), Dow Jones Private Markets (108), dpa-AFX Wirtschaftsnachrichten (109), FINANCIAL GATES (109), FinanzNachrichten.de (110), GoingPublic Media (110), International Herald Tribune (110), IR Magazine (111), mergermarket (111), n-tv Nachrichtenfernsehen (111), Neue Zürcher Zeitung (112), Phoenix CNE (112), RiD Real Estate Information (112), VDI Verlag (113)

Deutsches Eigenkapitalforum 2011

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Content

TOP 50 Capital Seeking Companies 116 117 118 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158

AE Photonics GmbH Affimed Therapeutics AG AMEOS AG ANM Adaptive Neuromodulation GmbH Armatix GmbH Atlas Interactive Deutschland GmbH Aupeo GmbH BIOMETRY.com AG Breezecom Inc. Concentrator Optics GmbH CPM Compact Power Motors GmbH Curetis AG Cytolon AG Deutsche Revo AG | Bank in Gründung evidanza GmbH finocom AG friedola TECH GmbH froodies GmbH healthy planet Henan Snow Bird Enterprise Co., Ltd ibidi GmbH Inventux Technologies AG Jedox AG JPK Instruments AG Lophius Biosciences GmbH Maxidor (Pty) Ltd MCW Oil Sands Recovery, LLC Medicyte GmbH Metasonic AG Micropelt GmbH mimoOn GmbH mitcaps GmbH MOBILES REPUBLIC Ningbo Strong Magnets Co., Ltd. Novaled AG NTS Energie- und Transportsysteme GmbH Omikron Data Quality GmbH Platin Delikatessmanufaktur GmbH REVOTAR Biopharmaceuticals AG RIEMSER Arzneimittel AG Sana Kliniken AG SemiLev GmbH

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Deutsches Eigenkapitalforum 2011

Photo: Deutsche Börse Group

159 160 161 162 163 164 165 166 167 168 169

Signature Diagnostics AG SIRION BIOTECH GmbH SUNOVA AG Superwise Technologies AG Targos Molecular Pathology GmbH Torqeedo GmbH van den Berg AG VESTOLIT GmbH & Co. KG VST Verbundschalungstechnik GmbH – VST Group Windreich AG Zimory GmbH

Service 170 Deutsche Börse Listing Partners 178 Financing via Deutsche Börse An overview 179 Imprint/Index of Advertisers 180 Contact Persons at Deutsche Börse Group

Programme Deutsches Eigenkapitalforum 2011 182 Programme Overview Appendix a: Main Level Map Appendix b: Upper Level Map and Exhibitors’ Index

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Considering an IPO? Preparing your masterpiece in capital markets Michael Oppermann Partner Head of Financial Accounting Advisory Services Germany - Switzerland – Austria

Dr. Martin Steinbach Executive Director (FAAS) Head of IPO and Listing Services Germany - Switzerland - Austria

Phone +49 6196 996 27305 [email protected]

Phone +49 6196 996 11574 [email protected]

www.de.ey.com

Introduction

Sustainability vs. Return on Investment On the situation with sustainable capital investments in international financial markets

Responsible investing in international financial markets has gained in importance in recent years. The forms of investment that can be characterised as sustainable are those, in addition to the conventional investment criteria (risk, return, liquidity), that also take extra-economic factors, i.e. ethical values and moral principles, into account. To date, there has been no universally valid definition of just what constitutes socially responsible investing. In the English-speaking world, one term that has taken root is ‘Socially Responsible Investment’ (SRI), a term that encompasses the dimensions of ‘economy’, ‘ecology’ and ‘social responsibility’. It should be pointed out that where sustainable investment is concerned, the decision to invest capital involves not only economic considerations but social and/or ecological aspects as well.

Katarin Wagner has worked for HSBC Trinkaus in a variety of capacities for nearly 11 years. In early 2011 she took over the ‘Corporate Responsibility’ area, a unit of Corporate Communications.

Katarin Wagner, CR Officer, HSBC Trinkaus & Burkhardt AG

Market volume and variations of SRI During the past decade, the worldwide markets for stock and bond portfolios that invest according to ESG (environment, social and governance) criteria have experienced stronger growth than the conventional markets. An overview published in Oekom research’s Corporate Responsibility Review 2011 puts the global volume for sustainable Figure 1:Evolution of SRI Market in Germany 14.0 0.5 12.0

investments at EUR 7.8 trillion. The previous year’s report set this amount at around EUR 5 trillion. Nevertheless, the share of investments placed in Germany still accounts for only 0.8% of total investment volume. Germany thus lags significantly behind other countries in a European comparison. Yet there are variations in the criteria used to define sustainable investments. Accordingly, when different institutions are examined, estimates of the absolute volume involved vary from one to the next. Definitions also vary internationally with regard to the things considered ethically, ecologically or socially responsible.

1.8

10.0

5.9

8.0 4.3 6.0 0.9 4.0 1.7

6.6 5.0

2.0 2.5 0.0 2005

Mandates

2007

Mutual Funds

2009

Structured Products

Source: Eurosif European SRI Surveys 2010, 2008 and 2006

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The volume indicated gives an impression of the funds that can be set in motion if investors decide for or against investing in a particular company. The institutional investors clearly dominate among the investors involved. Within this group, the pension funds are the strongest group, closely followed by public funds and a lower share of ‘other financial products’ that are neither mandates nor public funds. These include funds of funds, hedge funds, ETFs and closed funds.

Deutsches Eigenkapitalforum 2011

The role of private investors is not a negligible one where sustainable investing is concerned. Some 45% of the total volume of EUR 12.9 billion in sustainable investments in the

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Introduction

chase and sale of securities (this is known as the screening approach), an investor with active strategies consciously takes a company’s management into consideration (known as the engagement approach). In recent years, there has been a host of empirical studies to determine whether there is an inevitable deterioration in the yield/risk relationship, with investors required to accept underperformance in an investment universe intentionally narrowed in comparison to the overall market. The bottom line of such studies is that no such underperformance has been documented. Indeed, a considerable number of studies have identified an outperformance by sustainable capital investments in comparison to conventional ones.

Photo: Bilderbox.de

German capital market is carried by this group. In terms of the individual financial titles, fixed-interest securities account for the lion’s share of sustainable investments, followed by shares invested through funds and mandates. The remaining shares of the total market are in the hands of institutional investors. If one considers the institutional investors, it can be observed that insurance companies, pension schemes and funds are less prominent here than they are in the conventional capital market. The total investment volume in Germany is thus broken down in equal parts into private and institutional investors.

Outperformance by sustainable capital investments From a practical standpoint SRIs are distinguishable on the basis of whether investors make them in an active or a passive form. Whereas an investor with passive strategies expresses his or her values exclusively through the pur-

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Deutsches Eigenkapitalforum 2011

A comparison between the leading sustainability index, the Dow Jones Sustainability Index World (DJSI World), and its conventional counterpart, the Morgan Stanley Composite Index World (MSCI World), which is not structured according to ESG criteria, yields no clear conclusion. The reason for the asymmetry between sustainable capital investments in Germany versus the international landscape owes to the small share that stocks and investment funds comprise relative to wealth formation macroeconomically. German private households still exercise considerable restraint visà-vis investments in securities as the system of statebacked guarantees remains quite important.

Outlook In the near future, professional SRI investments can be expected to exert a lasting impetus for growth in sustainable investments. An example of this is the planned exit from the field of atomic energy. Ensuring that energy needs in Germany can still be met in the year 2022 will require billions in investments in the triple-digit range in renewable energies. Ensuring the continued relay of electric current alongside this will require billions in investments in the double-digit range to extend and develop grid infrastructure. The points of capital collection, and the banks, will thus have a significant role to play in the effort to finance these developments to meet the ambitious aims of the German federal government. They also require security from a political and regulatory standpoint, particularly given the current situation in the financial markets.

Jefferies. One of the fastest growing global investment banks. Jefferies, a global securities and investment banking firm, has served companies and their investors for nearly 50 years. Headquartered in New York, with offices in more than 25 cities around the world, we are the largest independent full service investment bank with approximately 3000 employee-partners worldwide including more than 700 professionals in Europe. Jefferies Highlights • Jefferies and its affiliates have 180 equity and leveraged finance research professionals globally covering nearly 1,700 companies • Winner of over 27 analyst awards so far in 2010, including The Wall Street Journal “Best on the Street”, The Financial Times/StarMine, Institutional Investor, Forbes/Zack’s “Best Brokerage Analyst Survey” and Thomson Reuters “Awards for Excellence” • Our investment banking group consists of 650 bankers in globally integrated sector and product teams • In 2010 Jefferies has acted as bookrunning manager on 425 capital markets deals and advised on more than 125 advisory transactions with a total value of $175 billion for our clients • Jefferies has been appointed by the appropriate local authorities to trade government bonds in Germany, the US, UK, Portugal, The Netherlands and Austria

Investment Banking Sales & Trading Research Asset Management

Jefferies International Limited Niederlassung Frankfurt Bockenheimer Landstraße 24 60323 Frankfurt am Main, Germany

Jefferies.com

+49 (69) 719 187 0

© 11/2010 Jefferies International Limited. Jefferies International Limited is authorised and regulated by the Financial Services Authority

All Jefferies logos, trademarks and service marks appearing herein are property of Jefferies & Company, Inc.

MOST INNOVATIVE INVESTMENT BANK FOR GROWTH COMPANIES

For Sales & Trading enquiries, please contact: Michael Harbisch [email protected] For Investment Banking enquiries, please contact: Roland Sand [email protected]

Introduction

Public and private venture capital as an impetus for new technologies The ERP START-UP Fund as an example New technologies are born from knowledge. In the hightech sector, it is frequently spin-off companies from universities or enterprising graduates from technical universities who translate their cutting-edge knowledge and technological expertise into business ideas. Successfully, developing these ideas into marketable products and processes is essential for the innovative strength of Germany as an industrial and business location.

Werner Oerter has been the head of KfW Mittelstandsbank since March 2009. He is responsible for KfW’s financing offer to small and medium sized businesses, amongst others for Private Equity investments.

New ideas need capital Newly established and young, innovative technology enterprises have to struggle with high market and technology risks. Most start-up entrepreneurs also lack sufficient equity so they need a financially strong partner to help them with capital to turn their idea into reality. Particularly in the seed or early start-up phase, the partnership between public venture capital and private equity providers, who are convinced of the feasibility, marketability and demand potential of a new product or service, affords technology-dedicated start-up entrepreneurs and young businesses greater financial scope.

Public equity capital as a catalyst for private investments Besides the High-Tech Start-Up Fund, the ERP START-Up Fund performs an important task in the seed and start-up phase at national level. It provides venture capital directly to

Figure 1: Yearly investment of ERP start-up fund

250 184

200

192

137

150 108

113

100 61 50

32,5

44,7

63,4

53,8

73,4

83,2

0 2005

2006

commitments

2007

2008

2009

m€

Source: KfW Mittelstandsbank

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Deutsches Eigenkapitalforum 2011

2010

Werner Oerter, Head of KfW Mittelstandsbank

start-up entrepreneurs and young technology enterprises on a one-to-one basis with private investors (“pari passu” – principle). The ERP START-Up Fund was launched jointly by the Federal Economics Ministry and KfW in 2005, replenished for the first time in 2009 and already again in June 2011. In this year alone, the Fund was increased by another EUR 250 million to meet the future financial requirements of small innovative firms. Annual commitments are growing steadily, amounting to EUR 80 million in 2010. Altogether, more than EUR 400 million has been provided so far, as venture capital for start-up entrepreneurs and young technology enterprises. Equity participation by the ERP START-Up Fund aims to help new ideas and modern technologies to achieve a breakthrough. It focusses on enterprises in Germany that are looking to bring new technologies to market maturity. It is important that the share of development finance for the core innovation is provided by the enterprises themselves. As experience shows, in-depth technological competency is needed to successfully carry out developments and introduce an innovation onto the market. Also, the prospective firm may not be more than ten years old, earn no more than EUR 10 million in annual turnover and employ no more than 50 members of staff. The ERP START-Up Fund leve-

Introduction

rages each euro that a lead investor provides to a technology enterprise by 100%! The maximum equity contribution of the ERP START-Up Fund amounts to EUR 5 million, EUR 2.5 million in the first round of funding. The fund participates under the same terms and conditions as the lead investor, but makes its own investment decision. The ERP START-Up Fund is available as a co-investor for all its accredited equity providers. National or international VC companies are just as eligible as venture capital funds or business angels to perform the role of so-called “lead investors”. These various lead investors make use of the coinvestment facility of the ERP START-Up Fund for individual investments, but increasingly also for their whole portfolio.

start-up businesses practically always are – the prospect of having a reliable co-investor like the ERP START-Up Fund at their side is an advantage to funds competing for investors. All this of course also directly helps start-up entrepreneurs and young technology enterprises themselves. The availability of the ERP START-Up Fund simply raises the number of start-ups and technology-dedicated enterprises that can obtain venture capital at all. The coinvestor approach adopted by the ERP START-Up Fund also creates an incentive for the technology business to already venture onto the equity market at a very early stage of corporate development and soon learn how to deal with the requirements of private equity capital providers. This experience is certain to help them in soliciting investors in subsequent funding rounds.

More capital for start-up entrepreneurs Conclusion A co-investment by the ERP START-Up Fund doubles the financial leeway for the private investor. Theoretically, a fund can, for example, make twice as many investments with the same amount of capital, effectively doubling its funding. This enlarges the portfolio, broadens diversification, lessens risk and enhances the fund’s chances of success. It also makes an impression on prospective fund investors. In risky investments – and equity contributions to

With the ERP START-Up Fund, private investors can leverage their investment and double their financial ‘power’. This holds for business angels but also for investment companies. Together, by helping technology-dedicated, young enterprises to start up and grow, they can contribute to improving the technological competitiveness of German business and industry. Advertisement

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Introduction

The “Mittelstand” (SMEs) needs a partner Comprehensive capital market and financing support for greater returns

Many drivers use a garage to provide them with all-round support, because a good garage knows the vehicle’s history, knows when the oil, brakes, tires, etc. next need to be changed. However, anyone who visits a garage that just specialises in changing the oil or brakes, for instance, only gets the oil or brakes changed. All the while, other important things are left undone. In short: good all-round support completely represents customers’ interests. The same principle applies to the Mittelstand (SMEs) in regards to investment banking. At times it is still suggested that SMEs only require a very restricted approach in the form of traditional banking, that is payments, deposits and lending. This is incorrect in my opinion. First-class investment banking services can sustainably increase, in particular, an SME’s sales and profits. And not just major companies are entitled to excellent capital market and financing services, SMEs are too! Our experience shows that SMEs are increasingly interested in receiving support from a bank with a presence in a number of European financial centres with access to the German and international capital market – and accordingly to international investors.

Johann Ostermair has been a member of the Executive Board of Silvia Quandt & Cie. AG since June 2011. Previously, he held various leading positions at Merrill Lynch, Julius Bär, Salomon Brothers and JP Morgan in Germany and UK.

Johann Ostermair, CEO, Silvia Quandt & Cie. AG

high-quality range of investment banking services; this is the only way for SMEs to gain access to all capital market opportunities. And secondly, SMEs, like the driver, need a partner who speaks the same language and who understands his clients’ requirements and demands particularly well. Naturally, this is the case with a smaller, medium-sized and business-oriented bank.

The partner must be a perfect fit In my view, two points in particular are important for SMEs: Firstly, like the driver, SMEs should only work with qualified organisations. That is an institution with a team of experts and a sustainable network to offer a comprehensive and

What are the advantages of all-round support? The SME could, after all, have different institutions to cover the various investment banking services. In this case, the SME would have to know the best current services and solutions types itself. This would also result in a conflict of interests as each institution would give special mention to the services they provide. As with the car example, the customer with allround support is usually better off.

Customer closeness provides competent real-life solutions

Photo: AshDesign - Fotolia.com

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Deutsches Eigenkapitalforum 2011

In contrast, a comprehensive partnership approach aims to find the best solution for the SME using experts with similar interests. Only someone who knows a company well can also recognise and utilise capital market opportunities. There are many types of transactions, but it is important to select those that best fit the customer’s strategy and business model. Factors such as exclusivity, flexibility, sustain-

Introduction

Figure 1: Working principles for banking services

    

Exclusivity

Sustainablility

Flexibility

Discretion

Focus on clients‘ needs Aligning of interests Focus on sustainable added value One-stop-service approach Long term relationship to companies and clients

bination of the two; what solution fits best needs to be examined on a case-by-case basis. Institutional brokerage means more than just finding and getting to know investors, it also means selecting investors who will support the company for some time. Designated sponsoring does not provide a share with liquidity but gives important information on the situation in a share’s market, which is of great interest for capital measures, for instance. And qualified research ensures that interest is generated for a company and its business model in the first place. An investment banking partner also helps with tasks such as preparing presentations so that they meet investors’ expectations. And M&A can show a company its development opportunities. All these factors are closely linked in a relatively small bank. Being a partner to an SME means promoting a company with expertise and passion.

Source: Silvia Quandt & Cie.

SMEs will benefit ability and discretion are also extremely important to SMEs. These can best be delivered using a long-term comprehensive approach. Some real-life examples: Customers have the option of equity and borrowed capital financing solutions or a com-

All in all, a long-term comprehensive approach is an advantage, just as with the example of the car. However, such an approach can only bring about the desired positive results if the all-round support is not secured at the expense of quality in individual areas.

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Introduction

Turkish Markets Appeal to Investors and Companies Hüseyin ERKAN, Istanbul Stock Exchange Chairman & CEO

The world economy is going through an unsteady recovery period in the post-crisis era. While growth in developed countries has been limited in this period, emerging economies are evidently less affected from the recession posting more favorable economic results. Turkey has managed to remain immune, to a certain extent, to the virulent symptoms of the financial crisis thanks to its strong macroeconomic policy framework and robust structural reforms of the recent decade. The reinforcement of sound fiscal policies seems to have broken the typical pattern of booms and busts, and it has been rewarded with a considerable decline in Turkey’s risk premium. The country has experienced a quick rebound achieving a record 8.8% of growth rate in the second quarter of 2011, and has become the fastest growing economy in the G-20 club. Banks have soared to record profits building up on strong balance sheets and capital adequacy ratios. Turkish capital markets have fairly enjoyed this period evidently in all figures. 2010 resulted in a 35% increase in traded value at Istanbul Stock Exchange and 21% rise in the ISE 100 Index (USD based). By September 2011, the total traded value reached at USD 354,279 million and the value of the ISE 100 at 1,877.73 (USD based). ISE has registered a success story in government debt securities market as well. The exchange hosts virtually 4/5th of the trading volume in fixed income securities and the over-the-counter market transactions of government securities run in small quantities. The traded value in repo market is substantial that it hits 2 trillion USD in 2010. In terms of traded value the ISE Bonds and Bills Market is one of the top ten markets of the world as of June 2011. In the meantime, a nationwide IPO Campaign, which has been underway for more than two years, has set to bearing fruits. In 2010, 22 companies went public resulting with the highest number of IPOs since 2000. The number of public offerings has maintained tendency to rise up in 2011 setting the bar higher. Similarly, corporate bonds market has signaled a healthy revival as a result of decreased domestic borrowing

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Deutsches Eigenkapitalforum 2011

Hüseyin Erkan is the Chairman and CEO of the Istanbul Stock Exchange (ISE), President of the Federation of Euro-Asian Stock Exchanges (FEAS) and Member of the Board of Directors of the World Federation of Exchanges (WFE).

Hüseyin ERKAN, Chairman & CEO, Istanbul Stock Exchange

requirements. The dynamism brought to the market by the IPO Campaign has influenced foreign companies as well; as we have received listing applications from foreign companies. As an additional incentive to the public offerings initiative, ISE is applying a discount of 25% on initial listing fees which will be in effect until the end of 2012. This IPO initiative is pegged on two anchors: first, European Union’s minimum free-float rate of 25 %; second, the Istanbul International Financial Center (IFC) Action Plan. The IFC strategy plays a key role in delivering a roadmap for the financial industry towards the centennial anniversary of the Republic in 2023. This multi-pronged strategy suitably envisages targets inter alia the number of listed companies on the exchange. ISE has meticulously sustained efforts to augment markets operations and surveillance for market efficiency and integrity. In due respect, automatic circuit breaker system has been put in place along with continuous auction with or without market makers and single price auction methods, order cancellation, and reduced price ticks. Anonymity of order executers has been another policy action so as to support a more effective price formation and to prevent adverse market movements.

Introduction

one of the four signatory exchanges to the United Nations Responsible Investment Principles (UNPRI), and full member of the Federation of European Stock Exchanges (FESE). ISE is shareholder at Baku Stock Exchange, Kyrgyz Stock Exchange and Sarajevo Stock Exchange. Istanbul Stock Exchange is steering a joint initiative for creating an order routing platform which would serve as a single access point from and to the local as well as regional exchanges. This platform will consolidate the liquidity of the local and regional markets and as a consequence increase the global recognition of the local securities industry. The Istanbul Stock Exchange has subscribed to innovative ideas and policies. In line with the efforts to offer new markets and financial instruments to investors, a market for trading of warrants of financial intermediaries has been launched. Emerging Companies Market for SMEs has been initiated, and three sub-markets under the Bonds and Bills Market (the Offerings Market for Qualified Investors, the Repo Market for Specified Securities and the Interbank Repo Market) have been introduced. Equity repo market will be built up and running before the end of the year. ISE designs different types of indices so as to enable investors to track the ISE markets. Respectively, 46 and 18 indices are computed for the stock market and the bonds and bills market. Aside from benchmark and sectoral indices, ISE City Indices, Dividend Index, Corporate Governance Index and Greece & Turkey 30 Index (GT-30) are only a few calculated as the main monitor of the price and return performances of the stock market. A recent project of Sustainability Index is underway relying on peculiar multi-stakeholder process and best practices. Sustainability Index is expected to be a platform for the institutional investors to commit to companies managing environmental, social and governance (ESG) issues with high performance.

Innovation, investors and issuers will be the three main pillars paving the way ahead of the Istanbul Stock Exchange. The commitment to working with the regulators, intermediaries, fund managers and other involved parties to devise new products and markets will be the denominator for innovation. ISE will engage more in the public offering initiative by putting the corporate governance and sustainability at the forefront and bringing more flexibility to the listing criteria. Meanwhile, the joint action on investor awareness and financial literacy will underpin the efforts to strengthen the demand side. It is our firm belief that the concerted efforts of the sectoral institutions will lead us to create synergy and success on all the targeted areas. Putting all these in a context, we invite global investors and market participants to explore more on the growth potential and prosperity that the Turkish markets offer.

Counting on its progress in the past and potential in the future, Istanbul Stock Exchange is moving forward with a global vision. The ISE is presiding over the Federation of Euro-Asian Stock Exchanges (FEAS), represented at the Executive Board of World Federation Exchanges (WFE),

Deutsches Eigenkapitalforum 2011

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Introduction

Best practice in investor relations IR is about the stock price

The role and purpose of investor relations is to maximize the share price for a company. That is a simple truth, but you might think it is a heresy. Whether you are new to IR or a seasoned practitioner, you will have heard clearly that IR is not about the share price, as short-term fluctuations in value are down to the market, so the IR team can not control these, and moreover, they really should not try. Well, what you’ve heard is all very true, and further backed up by the fact that our worldwide Thomson Reuters Extel data shows only a handful of IROs around the globe get paid based on short-term stock performance. So – how can we claim IR is about the stock price? The answer lies in the unique position IR has in almost every quoted company. For a business, all employees there are focussed effectively on earnings. That can be through driving revenues and sales, keeping customers, controlling costs, delivering new products and services – but they all add up to the same thing. Now stock price is a function of earnings x the multiple, and the IR team are the ones – very often the only ones – whose job, day in and day out, is to influence that multiple number. The market derives a multiple for any company by how clearly defined and expressed is corporate strategy, and how much they believe in that strategy; the confidence they have in execution and delivery; and by assessing consistent performance over time. The role of the IR is to put all that across to analysts and investors, and providing an

Photo: Deutsche Börse AG

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Steve Kelly is Managing Director, Thomson Reuters Extel, and has held this post since 1999, when Thomson Reuters acquired the Extel business. Steve has held a range of marketing and communications roles in the past, including spells with Philips and British Airways. He holds an MA in Modern History from Oxford University.

Steve Kelly, Managing Director, Thomson Reuters Extel

ongoing corporate narrative. Doing so successfully over a longer period will increase the multiple, and thus increase the stock price.

The data speaks for itself 75% of companies worldwide use investor/analyst feedback to evaluate their IR performance, because of this direct link between the market view on your IR to how the market ascribes a multiple to the stock. Each year in Extel, we receive nominations for over 1,500 companies in Europe for their IR, across 30 sectors and 15 countries. For any single year, the companies with the best regarded IR may have a positive relative stock performance, or they may not. The pattern is very consistent – each year about half of the IR winners outperform in share price, and half underperform. When you examine these rankings over a longer period – say 5 years – only a small number of companies, about 10, are top-rated each and every year for their sector or country. By definition, these selected companies are delivering long-term, consistent excellence in IR. And, over the same 5 year period, they outperform their peers and sectors by an average of 24% in stock price terms. So IR is about the stock price – consistent focus and delivery in IR, which is both a requirement for today and every day – will mean you compete more effectively for investment dollars, and you change the valuation of your company.

Introduction

Every aspect of IR activities – roadshows, conferences, website, analyst calls, investor days, formal reporting, and all the rest – must be framed against the fundamental of enhancing the multiple. On a daily basis, IR is all about developing trust with the market. It is building a coherent corporate story, which naturally develops over time, but has a narrative thread that investors can trace back. So what works and what does not work here – how are the IR top performers making a difference? Through the unmatched Thomson Reuters Extel findings, based on views from over 9,000 asset managers, 2,500 brokerage analysts and 750 IR directors, we can define and guide on what really works in implementing and communicating that story. The critical points are:

Budgets matter, but only up to a point Obviously bigger companies can spend more, and do spend more, but our data shows on average German and other European companies are spending about EUR 300,000 per annum on IR, and that number is only increasing slowly, if at all. The top-rated IR teams are sometimes spending more than the average, but it is much more about how they spend, rather than how much.

Focus on the best investor opportunities It may sound facile, but it is not. Extel data shows companies overall spend nearly half CEO/CFO time on IR in

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Introduction

are much more open to this, and have worked through the issues of coaching and developing directors so that they are both comfortable and effective in an investor meeting.

Be connected with company strategy

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meeting their top 20 investors. The IR top performers spend far less time here, and much more with major buyside firms that own only a little of their stock – but have the capacity to own much more. Essentially, the main investors in a stock are believers in your story, and understand your business. They need to be kept informed, but they do not need overservicing. In fact, they can resent it, as they want to spend their time on new investment ideas. Conversely, those asset managers with extensive resources, but not in your stock (or only holding a tiny fraction) represent real opportunity. We see Extel top IR performers spending over 30% more time with these prospective investors than the industry norm.

Stay up to date with market trends From all our market interaction, areas such as sustainability investing and use of social media are growing in importance. Top-rated IR companies have established a policy for social media, and an active programme to respond to SRI issues, whereas companies overall are either uncertain or unaware.

Make more of divisional directors While this is reflective of another key trend – the appetite of investors to ‘drill down’ and understand real value drivers in a business through meetings with divisional heads – it is worth highlighting separately as it is such a key demand. Our latest data shows that over 85% of active equity investors take their key investing decision on the back of a company meeting, and that over 60% now expect divisional director access. Companies offer such access at investor days, but the buyside also wants more ad hoc, personal interaction, too. Again, we see the leading companies for IR

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As the role of the sellside has become constrained by regulation, and as the depth of expertise amongst brokers is less than before, investors expect IROs to be able to speak cogently about the sector, as well as their own company, and provide a clear sense of company direction. Also, as demand for meetings increase, investors and analysts recognise they cannot always speak with CEO/CFO – on those occasions the IRO must be able to address all the issues. Without exception, every Extel IR winner as an individual IRO reports into CEO/CFO, and is embedded in strategic formulation at their company.

Put technology to work Teleconferences and video-calls are standard issue, and every company has an IR website. These are all expected by investors, and the real penalties come if a website is out of date, or hard to use, or if the line goes down on a call. However, as the standard is higher now, IR teams need to place more resources here, so that they do not suffer by comparison. We see many of the leading IR teams using tele-presence follow-up for international investor meetings. Investor relations is an unceasing quest, and any technology, or appreciation of the latest issue, runs secondary to trust, transparency and consistency. In conclusion, and in the context of Germany, it is worth stating that, based on all the Extel data, Germany has IR leadership in Europe. On these key best practice items, German companies are ahead of pan-European norms; in each of the last 5 years, it has been a German company (and a different one each time); that has been top-rated across all pan-Europe for quality of IR; and a German IRO is the best in Europe (against 5 500 other nominees) for the third time in the last four years. The virtues of transparency, clarity and professionalism that resonate in IR sit well with the German approach to business, and should ensure German IR continues to deliver for coronus in terms of the ultimate IR goal – longterm stock price appreciation.

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Friend or foe? The influence of proxy advisors on resolutions of the shareholders’ meeting

Recommendations given by institutional proxy advisors on shareholders’ resolutions have an increasing impact on shareholders’ decisions. These advisors, which inter alia analyse the company’s agenda and offer recommendations to their shareholding clients on how to vote, have become important players in the global corporate world. A growing number of institutional investors rely on recommendations of proxy advisors thereby contributing to the significance of their respective recommendations. Some observers estimate that up to thirty percent of the votes cast are influenced by the market leader Institutional Shareholder Services Inc. (ISS) alone. Recommendations of advisors like ISS, Proxinvest, IVOX, or other shareholder organisations such as Deutsche Schutzvereinigung für Wertpapierbesitz (DSW) or Schutzgemeinschaft der Kapitalanleger (SdK) aim to enforce high corporate governance standards. However, such recommendations may not necessarily match the company’s best interests or – more precisely – the voting recommendations issued by the management. This relates – among others – to the fact that many leading advisors apply their home – mostly Anglo-American – jurisdiction standards, which may not always be appropriate for the corporate governance structure of German companies. On the other hand, proxy advisors’ recommendations may as well assist investors, who often hold shares of many companies in various jurisdictions without having the (local) expertise to appropriately estimate the consequences of certain resolutions, in making more competent decisions on how to vote.

Christoph F. Vaupel, Partner, Taylor Wessing

Dr. Lars-Gerrit Lüßmann, Partner, Taylor Wessing

Seeking the dialogue Given the voting power of (institutional) investors following the recommendations of proxy advisors, it has become crucial for the management to carefully analyse the company’s shareholder structure and to communicate its strategy not only by normal means of investor relations but rather actively seek the dialogue with proxy advisory institutions.

Legal environment Nevertheless, proxy advisors’ recommendations and the actual interests of the company as identified by its management may diverge in the individual case, thus raising the question which remedies the management may have at hand. As corporate law and corporate governance represent a steady focus of legislators, the lack of regulations explicitly dealing with proxy advisors may surprise. Yet, this does not mean that advisors may act without accountability leaving the companies without protection.

Potential remedies Companies may be entitled to damages and, sometimes even more importantly, pre-emptively demand correction or even retraction of a recommendation. A damage claim could possibly be based on a violation of the advisor’s

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contractual obligations towards the investor by not appropriately taking into account the company’s best interests as the consultancy agreement may have a protective effect for the company. Furthermore, damage claims and claims for correction or retraction may be based on an infringement of the company’s rights with regard to its protected business interests if the recommendation contains or implies a false statement or abusive criticism. However, such claims probably exist – in the absence of case law – in limited circumstances only. Especially the question as to whether the proxy advisor may owe fiduciary duties to the company remains an open issue.

Capital market law Shareholders of a listed company are requested to disclose their shareholding if it reaches, exceeds or falls below certain thresholds (e.g. 3, 5, 10, 15, 20 percent). For purposes of determining such thresholds, shares held by third parties have to be taken into account if, for example, shares are entrusted to a third party insofar as the latter may exercise the voting rights at his own discretion without instructions. If the advisor’s guidelines provide for a scope of discretion and the investors follow such recommenda-

tions without taking their own decisions, it could be argued that the shares held by these investors are to be attributed to the proxy advisor. In addition, if shareholders agree to exercise their voting rights in a coordinated manner (“acting in concert”), their shareholdings have to be added up, obliging such shareholders to make a notification to the company and BaFin. It could be argued that the strict following of recommendations of a single proxy advisor by investors may qualify as acting in concert. If these disclosure obligations are violated, investors forfeit their shareholder rights and votes cast may not be counted at the shareholders’ meeting. In extreme cases, the shareholders’ resolutions may be voidable and investors may even be required to make a mandatory takeover offer if at least thirty percent of the shares are considered to act in concert.

Responsibility and consequences The influence of proxy advisors is likely to increase. Although proxy advisors are unregulated, companies are not entirely defenceless against their recommendations. The effective transfer of voting power from shareholders to their proxy advisors may also have highly unpleasant consequences for all parties involved.

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Can confidence in Chinese accounts be increased? A brief comment on China SOX and their impact on investor confidence

China SOX (C-SOX) is the Chinese Basic Standard for Enterprise Internal Controls that was jointly announced in June 2008 by five Chinese government agencies and will be phased in over the coming years. It is a regulation designed to improve risk management, compliance and internal controls and shall prevent cases like AIG, Enron and Worldcom in China. The following five main requirements govern the Basic Standard for Enterprise Internal Control. 1) Implementation and conduct of the company internal environment, risk assessment, control activities, information and communication as well as internal monitoring. 2) Internal control policies shall be defined and implemented 3) Establish a suitable IT system with embedded controls 4) Establish policies to reward proper implementation of internal controls. 5) Perform an annual self-assessment of the effectiveness of internal controls and issue internal control selfassessment reports

Dr. Gebhard Zemke, Partner, Tim Sichting, Audit Senior Manager, BDO AG Wirtschaftsprüfungsgesellschaft BDO AG Wirtschaftsprüfungsgesellschaft

cases became public in 2011 and led to concerns of investors in regard to the credibility of the accounting of Chinese companies.

Addressing investors’ concerns C-SOX are targeted at domestically-listed Chinese companies and companies with a dual listing in China and abroad. As of today, more than 900 companies are listed on the Shanghai Stock Exchange and more than 700 are listed in Shenzhen. C-SOX intend to impose stricter corporate governance, risk management and control standards on these listed companies. In 2010, only the first batch of large enterprises has been requested to implement C-SOX in a trial phase. In the following we want to discuss whether C-SOX are suitable to help regain investor confidence in Chinese enterprises after the Sino-Forest and LongTop

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During the time of our research a total of 1618 listed companies published an internal control report. In the self assessment reports 99.2% of them state their internal control system to be effective. Out of these 875 companies listed in China have their internal controls audited by accounting firms in 2010 and 99.8% of the auditors’ reports show an unqualified opinion. Furthermore, in comparison to 2008 and 2009, an upward trend in the quality of internal controls in China could be seen. From the business year 2011 onwards, Chinese listed companies with a dual listing abroad are required to publish an auditors’ report about the design and operating effectiveness of internal controls where major control deficiencies will be disclosed. Furthermore, from the business year 2012 onwards only domestically listed companies are required to have their internal control system audited. Due to the fact that the concept of internal controls and the audit thereof is a concept that is new to many large Chinese corporations; concerns have been expressed whether the implementation of the C-SOX can be successful at all. The reason for these concerns is the unfamiliarity of many Chinese enterprises with a well-documented internal control system and the

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lacking available guidance for the introduction of a modern comprehensive internal control system.

controls regarding operations and in the long term is expected to apply to all medium and large companies.

Who’s to follow?

As the creation of trust in Chinese financial statements needs immediate response, C-SOX can only be part of it. From a foreign investor’s perspective a largely successful system has been created in Germany by listing Chinese companies under the German corporate governance regime of a German stock corporation (Aktiengesellschaft). The oversight by a partly German supervisory board has proven to be an important factor in creating trust as the German members of the supervisory board have direct access to Chinese management and can convey concerns of international investors to Chinese management.

Problems mentioned in the Chinese media tackle various areas. A large Chinese company like Sinopec employs 374,000 people, operates in all provinces in China, comprises more than 100 subsidiaries and is present in all major cities in China. These dimensions help to understand that the introduction of a standardized, centralized internal control system within a short time is ambitious. Problematic areas include the fact that often Chinese companies operate less advanced IT systems which are sometimes not integrated. Furthermore, a habit mentioned in the media of Chinese employees is to follow instructions of their supervisors rather than follow the companies’ guidelines in a specific situation. The aforementioned discussion within China illustrates that as of today C-SOX helps to improve the environment for internal controls of Chinese enterprises, but that this improvement will take a long time until today’s efforts pay off. Whereas the US-SOX focus on financial reporting processes and is designed for listed entities, C-SOX will also cover

Outlook Another initiative has been launched by Chinese businessmen who are aware of the disadvantages of today’s negative perception of Chinese companies listed abroad. As a Chinese businessman put it: “After all, advisors, lawyers, auditors and internal control systems also have limits in the creation of trust, the main responsibility lies with company management that is required to enter into a transparent and open communication with investors.” Advertisement

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More to come Good corporate governance becomes more and more important

New and increasing shareholder activism, additional duties and higher liabilities for executive and supervisory board members combined with scandals based on moral hazard in the entire world demonstrate the necessity to establish good corporate governance. Signalling best practice of corporate governance towards existing shareholders and potential investors is increasingly a critical success factor to differentiate yourself from competitors and to lower your cost of capital. A challenge for issuers’ organisation and processes in high speed interlinked global capital markets without boundaries or borders in trading and investing. Despite non existing borderlines, the global variety of underlying governance systems as well as the different forms of capitalism and cultures add additional complexity to the challenges they face. Regardless, they do have one thing in common: the corporate governance mechanisms and the related controls, which are designed to reduce the inefficiencies that arise from the existing moral hazard.

Dr. Christian Orth is a partner of Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, Stuttgart. He is a member of “Institut der Wirtschaftsprüfer e.V.” as well as Institute of Chartered Accountants, England and Wales.

Christian Orth, Tax Manager Germany, Ernst & Young

Effective oversight in Europe Figure 1: Rights and obligations of the supervisory board

After releasing two EC Greenpapers “Corporate governance in financial institutions and remuneration policies” and “Audit Policy: Lessons from the Crisis” the European Commission shifted its focus towards the oversight bodies within corporations. By releasing the third EC Greenpaper “The EU corporate governance framework” in April 2011, the European Commission is targeting the members and the organisation of the board of directors in their supervisory role (= supervisory board in a two tier system, such as in Germany).

Source: Ernst & Young

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The European Commission believes that an effective oversight requires accountability of each and every board member. The requested personal qualification addresses aspects such as the merit, professional qualification, experience, personal qualities and independence (in appearance and in fact). In addition to this current initiative, board

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members face more often litigation and legal action in practice. As a result, supervisory board members should apply due diligence and take immediate action against any breach of duties. First of all, board members need to be aware of all their duties. Unfortunately these duties are not static due to continuously released new rules and regulations, new case law, and new best practices – and there is more to come! The European Commission’s 2005 recommendation on the role of non-executive and supervisory directors of listed companies stated that the board should evaluate its performance annually. This recommendation has become law in all European countries – however, in most countries it has only become “soft law”, i.e. it is part of the corporate governance codes. In Germany, the German Corporate Governance Code recommends an annual self-evaluation which is more or less intensively executed by all listed companies in Germany.

Relationship banking

The European Commission recently raised the questions whether regular use of an external facilitator can improve board evaluations due to an objective perspective and by sharing best practices from other companies. Such an evaluation could especially be performed by independent certified public accountants, i.e. in Germany the “Wirtschaftsprüfer”. Based on his knowledge and experience, the public accountant could also provide a performance review for the entire board or perform counsel functions for single board members.

Effective control systems in the German two tier system The German Law (i.e., Commercial Code (HGB), Stock Corporation Act (AktG)) does not explicitly oblige executive boards to implement an internal control system in a way it is required in other states, such as by the Sarbanes Oxley Act in the US. However, general provisions (especially the required duty of care) determine the necessity to implement

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www.bankm.de

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Figure 2: Control System in the German two tier system

Source: Ernst & Young

effective processes and systems which manage risks related to the company’s business. A new German law (BilMoG, 2009) clarified the supervisory board’s obligation with respect to the oversight of the executives’ responsibilities to establish and operate an effective control system. The German two tier system determines a clear segregation of duties with respect to the operation and oversight of the companies’ control systems. The following is a brief overview of the obligations related to the executive board and the supervisory board members:

1. Executives’ obligations • Inventory and documentation of controls – effective controls and rating of control systems require documentation of all relevant elements of the systems including organisational structure, processes and major goals. • Rating of adequacy – based on the documentation executives have to rate the adequacy of the control instruments, such as an evaluation of whether the controls have been designed effectively to prevent or detect material risks on a timely basis. • Rating of operating effectiveness – evaluation of the operating effectiveness of controls and determination of whether the relevant controls (in fact) prevent or detect material risks on a timely basis. • Reporting to the supervisory board – in order to enable the supervisory board members to monitor the control

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systems, the executive board has to provide the supervisory board with all relevant information on a regular basis, including the executives’ assessment of adequacy and operating effectiveness of the control systems.

2. Supervisory board members’ obligations • Monitoring of financial reporting process – obtaining an understanding of the financial statement close process, including an evaluation of the design and operation of the financial statement close process. • Monitoring of effectiveness of the company’s internal control system – evaluation of the design and operating effectiveness of the internal control system, usually by using work of internal audit or external facilitators, such as an independent certified public accountant. • Monitoring of effectiveness of the company’s risk management systems – evaluation of the design and operating effectiveness of the risk management system with particular consideration of safeguards to prevent from significant business risks. • Monitoring of effectiveness of the company’s internal audit – evaluation of effectiveness of an internal audit, including assessment of professional qualification, experience, personal qualities, and independence of internal auditors. • Monitoring of statutory audit – this includes reviewing and monitoring the independence of the statutory auditor or audit firm and in particular the provision of additional services to the audited entity.

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Close the gap A qualification standard for board members

Requirements for German supervisory boards have increased The ongoing Corporate Governance discussion has gradually put supervisory board members at the centre of discussions. Today, a high degree of economic authority and experience in corporate policy is necessary in order to be able to fulfil the tasks formulated in the German Corporate Governance Code. Lately the Accounting Law Modernization Act (BilMoG) has stipulated that publicly traded stock corporations must have at least one independent member of the supervisory board with specialist expertise in the fields of financial reporting or accounting. For a long-

Gerhard Bauer is Head of Capital Markets Academy. It brings together all Deutsche Börse Group’s training activities and acts by public mandate to qualify exchange participants.

Gerhard Bauer, Head of Capital Markets Academy

Facts about the Qualified Supervisory Board Exam The first qualified supervisory board exam provided by the Capital Markets Academy will be held in March 2012. It is aimed at prospective supervisory boards of small and mid caps or companies considering an initial public offering. The examination is computer-based and includes true or false questions as well as multiple response questions. The topics relevant for the exam cover all a supervisory board’s roles and areas of responsibility. These include, among others, organisation and management of the supervisory board, corporate strategy and management, operational risk management, compliance and auditing, financing and investment, change IT and technology management, corporate governance, ethics and corporate social responsibility, liability and manager liability insurance, as well as SEs under German law. Training courses on the qualification of supervisory boards are currently preparing members for the examination. The academy itself does not offer any seminars or preparation courses. It in fact certifies courses by other seminar providers. Deutsche Börse has already certified the first course: “The Qualified Supervisory Board of Interfin Forum GmbH”. Other organisers have also expressed their interest in certification. Certification of such training courses by Deutsche Börse is open to all providers in the field. www.deutsche-boerse.com/academy

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term perspective the establishment of professional board members seems to be inevitable. And in the last issue of this magazine a more proactive interpretation of the role of supervisory board members was discussed ( see Conference Magazine 2010, Volker Potthoff, CMS Hasche Sigle, Driving value in the boardroom, P. 34f). The increase in requirements consequently ends in a greater demand of qualification measures. Especially since the German Corporate Code explicitly points out that necessary training and further education measures are required for the work of board members. As a result, the market for education and qualification programs for this target group is booming.

No homogenous standard for qualification so far Although the German Corporate Governance Code exists since 2002, there is no commonly agreed standard for the qualification of board members so far. This might be due to the fact that qualifications like economic authority, professional expertise and above all personality count more in fact for this job profile than some sort of “seminar history” for a potential candidate. A standard could rather define what a board member should know to avoid mistakes in his daily operative business. In discussions with prospective and yet inexperienced board members we found out that they ask

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themselves simple questions like: Can I directly contact middle management for information about specific projects or about the company? Can I avoid personal liability for a case by simply abstaining from voting? Which tasks can be delegated to a committee? A qualification standard in line with the German Corporate Governance Code would be something both sides could refer to and rely on: The prospective board member already qualified by his or her personality and professional expertise who just has to close the knowledge gap he might have in his new role, and the companies that want to ensure that their new board members are fully qualified.

Conclusion

Photo: Photodisc

A standard in line with the Corporate Governance Code will contribute to establishing transparent and neutral criteria for the qualification of supervisory boards. Whether the knowledge transfer has to be controlled via an exam is

something that is being quite controversially discussed. Deutsche Börse offers one. Like many parts in the German Corporate Governance Code we do not consider it to be something compulsory but recommended.

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Financing

What does German “Mittelstand” really want? A survey provides evidence that German SMEs are still sceptical vis-à-vis stock markets

Traditionally, German small and medium sized enterprises’ (SMEs) finance has been heavily dependent on loans supplied by their “Hausbank”. But times are changing. The ongoing turmoil in the financial markets is likely to decrease banks’ ability to refinance loan portfolios in the capital markets. In addition, Basel III will lead to stricter capital requirements for banks which also might restrict credit availability. SMEs should therefore reconsider their reliance on bank loans and diversify their financing base by taking into account capital markets as a source of finance, in particular stock markets. But how important are stock markets as a source of finance for German SMEs? What is their attitude with regard to initial public offerings (IPOs) in general? A study conducted by Deutsches Aktieninstitut in cooperation with Deutsche Börse AG and Commerzbank AG provides answers to these questions. More than 300 responses from SMEs allow well-founded insights into SMEs’ finance behaviour and their willingness to go public.

Funding of internal growth Acquisitions Reducing reliance on outside creditors Strengthening the equity ratio

“IPO willingness” has decreased

34,1%

Access to other capital market instruments

31,8%

Employee stock ownership

29,5%

Company's succession Image/awareness level

27,3%

Fungibility of company's shares

27,3% 22,7%

Asset diversification of former owners

18,2%

Exit venture capital/private equity

9,1%

Source: DAI

Page 30

Dr. Norbert Kuhn, Deutsches Aktieninstitut

Although the respondents confirm that the strategic relevance of corporate finance has increased and 90 percent are planning to strengthen their equity and/or liquidity ratios, financing patterns remain nearly unchanged. Besides the retention of earnings, bank loans are and will probably remain the main 75,0% source of external finance. This result is somewhat surprising, as two 59,1% thirds of the respondents complain 40,9% that credit standards of banks are getting tighter. 36,4%

Figure 1: Reasons for an IPO

Sale of company's shares to third parties

Dr. Gerrit Fey, Deutsches Aktieninstitut

Deutsches Eigenkapitalforum 2011

Also, capital market instruments, like private equity, mezzanine, bonds or IPOs, still only play a minor role for German SMEs. In particular, 15% indicate that they are either aiming for or considering an IPO. Compared to a study carried out by Deutsches Aktieninstitut in 2007, the “IPO willingness” of the German “Mittelstand” is down by nearly ten percent. When considering this severe drop in stock market orientation one should take

Financing

Figure 1: Reasons against the IPO

Company's size

69,8%

Other sources of finance are sufficient

58,3%

Loss of strategic independence

57,0%

Equity ratio is appropriate

48,8%

Costs of going public

22,7%

Capital markets regulation

20,7%

Draw on organisational and time resources

19,0%

Low autonomy compared to other sources of finance

12,8%

Fear that shares might fall into wrong hands

12,4%

Transparency requirements of investors Mandatory transparency requirements Knowledge is not sufficient Low valuation

10,7% 9,9% 9,1% 7,4%

Business model is difficult to explain

2,9%

No further growth

2,5%

Source: DAI

into account that the survey was conducted when sovereign debt crisis accelerated, the mood among financial market participants turned bearish and worldwide IPOactivity fell significantly. This might have influenced respondents’ affinity for stock markets.

Growth funding as an important reason to go public There is a wide variety of reasons to go public among IPOaffine companies. Funding of internal and external growth turned out to be the main rationale for roughly seven out of ten companies surveyed. Furthermore, especially companies with a strong growth potential are interested to use the stock market as a source of finance. These findings underline that financing firms’ growth is the most important reason to issue shares. Reducing reliance on outside creditors was also stressed among the study’s participants (41%). This may well be a reaction of the banks’ lending practices becoming more selective. It is also important to strengthen the companies’ equity ratio (36%). Both are important aspects in creating a broader financing basis for companies.

Continuing prejudices against IPOs Despite these obvious advantages, more than 80% of the companies surveyed ruled out an IPO for the time being. Nearly 70% justified this decision by being too small to make the move onto the stock market. Yet company size is not the decisive factor for an IPO. There are special listing segments, in particular the Entry Standard, which open smaller companies a low-cost access to the capital market with tailor-made

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Deutsches Eigenkapitalforum 2011

regulatory requirements. On average the balance sheet total of companies in the Entry Standard has been EUR 25m at the time of their IPO. Thus, stock market finance is by no means solely the domain of larger companies. Nearly two third of respondents are also afraid to lose independence in making strategic decisions after the listing. However, only ten percent fear transparency requirements of outside investors. This underlines that companies are willing to provide investor-related information while fearing that they have to discuss important decisions with their investors. It is clear that investors, who put their own or third parties’ money at risk, wish to be involved in important strategic issues. However, this is only one side of the coin. Newly listed companies frequently report that their entrepreneurial scope has been expanded by the decision to go public. It is therefore a question of perspective, whether an IPO restricts or rather opens the room for manoeuvre. Also, it has to be considered that there are different means to preserve control in a listed company, retaining the majority of shares being the simplest of them.

Conclusion The findings of the study show that the German “Mittelstand” and stock markets as a source of finance are only partially compatible. Unfortunately, deep-rooted prejudices remain, e.g. regarding a certain minimum size of “IPO-suitability” and the degree of entrepreneurial freedom in listed companies. It is however a positive sign, that there is a clear willingness to communicate with investors. If it was possible to clear these prejudices, there would be no doubt that the yet untapped IPO-potential among SMEs could be successfully exploited as soon as market volatilities come down again.

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Financing

Choosing a listing venue to raise equity or debt Getting it right for entrepreneurs, investors and shareholders

In order to remain competitive companies have to prefinance important innovations. The capital market can be an important source for raising the necessary funds. Two most generally accepted ways to use the capital market are to raise equity or debt. Using the financing facilities of an exchange, the question for entrepreneurs becomes when and where to take their private company or their bonds public. Historically, the question of which exchange to use as a listing venue was of relatively low priority, usually defaulting to the domestic exchange. But today entrepreneurs are operating in a far more mobile capital market environment, one where the domestic exchange is not necessarily the standard option. There are many options of listing venues. Making the correct decision directly influences the cost of capital and the ultimate success of the IPO or bond issuance (IBO). Tight control over the actual cost of raising capital through listing of equity or bonds is an opportunity which can be a competitive advantage and actively exploited to the benefit of the entrepreneur, shareholder or bondholder. Costs vary considerably between listing venues and it makes sense to evaluate and compare in detail all costs involved before going public.

Alexander von Preysing, Head of Issuer Services, Deutsche Börse Group

Elisabeth Plakinger, Key Account Manager Issuer Services, Deutsche Börse Group

finance, compares the analysis of the world’s primary market activities and terms for listing on the Frankfurt Stock Exchange to leading international exchanges. Subjects of the examination included the costs of market access, the subsequent costs for further capital increases and liquidity of equities and bonds.

Many variables to consider One relevant study by Professors Christoph Kaserer and Dirk Schiereck, both renowned academics in the field of Figure 1: Percentage of prospectus IPOs and probability of IPO sustainability (in %) 80.0

73.5

72.3

70.0 60.0

The study shows the importance of how initial trading liquidity in newly listed companies supports their long term success. Deutsche Börse has a solid history in promoting newly-listed companies and developing liquidity in their shares. In addition, IPOs at Deutsche Börse are particularly attractive to investors as around 74% of all new listings come with an approved EU prospectus which assures high transparency, issuer liability and supports investor confidence.

50.0 40.0 30.0 17.9

20.0 10.0 0.0 Deutsche Börse

Euronext

LSE

Source: Kaserer, Schiereck: Primary Market Activity and the Cost of Going and Being Public – An Update, September 2011

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Deutsches Eigenkapitalforum 2011

With regard to the sustainability of an exchange listing Deutsche Börse also holds a leading position without bankruptcies among the companies with an IPO in Frankfurt. IPOs on Deutsche Börse are less transient than they are on the LSE or Euronext. Every fourth IPO on the LSE during the period from January 2001 and March 2011 is no longer quoted today. The percentage of insolvencies for Euronext is nearly 8% and for LSE more than 15%.

FCF is a Corporate Financing specialist arranging, structuring and placing equity and debt capital for private and listed small-/midcap companies. FCF provides its clients with growth-financing, acquisition-financing and/or refinancing advice and services, supporting them in implementing an effective and capital market oriented capital structure while reducing the dependency on bank financing.

FCF Financing Services I Equity Capital I Pre-IPO-financing I Public I Debt Capital I Short term I Long term I Hybrid

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Financing

Figure 2: Zero-trade ratio for main and alternative markets (in %) 20 18 16 14 12 10 8 6 4 2 0

18.2

9.1

18.18

9.09

0

0 DBAG

LSE main markets

Euronext

alternative markets

Source: Kaserer, Schiereck: Primary Market Activity and the Cost of Going and Being Public – An Update, September 2011

Deutsche Börse: outstanding liquidity Because investors usually prefer to invest in stocks which have optimal liquidity, a lack of trading activity can be potentially detrimental to a company’s share price. The zero-trade ratio (ZTR) is a measure of inactivity. The ZTR on Deutsche Börse’s main market is far lower than that on other European exchanges. Investors are more likely to buy and sell shares in larger companies listing on Deutsche Börse than on other European exchanges. Deutsche Börse leads among companies whose business is in alternative energies, high technology, chemical and industrial sectors. In the European alternative energies market alone, 97.4% of the entire IPO volume has been placed on the Frankfurt Stock Exchange.

Corporate Bonds

4.26% for issuing a bond on the Entry Standard for Corporate Bonds is the most cost-efficient solution compared to other segments. Moreover, by calculating the weighted flotation cost and thus taking the issue volume into account, the Entry Standard offers an even lower total cost of 4.18% and is therefore the most reasonable debt financing solution via a stock exchange.

Conclusion In summary it is therefore possible to conclude that Deutsche Börse’s Prime Standard and General Standard are the most attractive listing venues among the main markets. The alternative market segments Entry Standard and Entry Standard for Bonds are one of the most attractive listing venues for alternative markets and considerably more attractive than the others. All three of Deutsche Börse’s market segments performed strongly against the benchmark criteria. The research shows: Deutsche Börse is the most attractive listing and trading platform for companies, whether small, medium, large, young or already established.

To show the activity on the German debt markets the analysis compares the terms for listing corporate bonds of SMEs on the Frankfurt Stock Exchange to other relevant national exchanges. The evaluation includes Stuttgart (Bondm) as well Figure 3: Flotation costs for issuing bonds for German alternative markets (in %) as Düsseldorf (mittelstand) and 4.77 Deutsche Börse (Entry Standard for 4,80 4.64 4.62 Bonds). 4,60 Deutsche Börse offers a new segment especially for midcap companies that decide to raise debt: the Entry Standard for Corporate Bonds, launched in May 2010. The cost comparison for issuance of a corporate bond on one of the non EUregulated platforms proves very insightful. A total flotation cost of

Page 36

4,40 4,20

4.26 4.18

4.21

4,00 3,80 Entry Standard / Frankfurt Flotation costs (mean)

Bondm / Stuttgart

mittelstandsmarkt / Düsseldorf

Flotation costs (weighted average)

Source: Kaserer, Schiereck: Primary Market Activity and the Cost of Going and Being Public – An Update, September 2011

Deutsches Eigenkapitalforum 2011

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Financing

Efficient Markets? How trading patterns increase the cost of equity capital

It has become obvious that we cannot continue to believe in the theory of efficient financial markets1. In the last decade the prices of equities (as of many other financial instruments) seem to follow irrational behaviour. In times of economic and political uncertainty we are facing extreme volatilities that do not adequately correlate with macroeconomic and in particular microeconomic conditions. Between the end of July and end of August 2011 equity prices dropped globally by EUR 5 trillion which equals to 15% of global market capitalization. On 6th May 2010, the US equity market dropped by 600 points in 5 minutes eliminating approximately USD 800 billion in value, and then regained almost all of the losses within 30 minutes (so called “flash crash”)2. Academics, economists and regulators are trying to analyse these phenomena. However, the complexities of the interactions of different behavioural patterns are so overwhelming that there is no clarity about the causes as well as the remedies.

High volatility leads to lower valuations When you look at the recent downturn of the equity markets in August 2011 you will notice that there was a general market uncertainty, mainly due to the Euro crisis, but not any specific trigger event. Nevertheless, the German DAX, for example, dropped by almost 25%. At the same time the IPO market came to a complete standstill. Institutional investors are extremely nervous. Any of their investment decisions have to take into account the incalculable behaviour of

Figure 1: Global national derivatives versus primary securities 16.0

Ratio GDP

14.0

Total

12.0

Non-Derivative

10.0

Derivatives

8.0 6.0 4.0 2.0 0.0 Jan 99

Mar 00

May 01

Jul 02

Sep 03

Nov 04

Jan 0

Mar May 07 08

Source: OECD Directorate for Financial and Enterprise Affairs (2011)

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Deutsches Eigenkapitalforum 2011

Jul Sep 09 10

Volker Potthoff is an attorney with CMS and holds several supervisory board positions. He is a former executive board member of Deutsche Börse AG and was a member of the German Corporate Governance Commission.

Volker Potthoff, Of Counsel, CMS Hasche Sigle

the market and the threat of high volatility. As a consequence, if the IPO markets open up again, investors will factor in a “volatility risk discount” when buying shares in the primary market. This in turn leads to higher capital costs for companies seeking to raise capital. Companies that are not of a critical size will inevitably be affected even worse.

Innovation in the financial industry: the tail wagging the dog If you search for the causes of high volatility and asset mispricing, you will be confronted with an enormous complexity of interrelated factors such as herding behaviour, short selling, high frequency trading, derivatives, short term investment strategies, principal-agent conflicts, portfolio insurance, etc. All these phenomena are interrelated. First and foremost one must mention the leverage effect resulting from multifold derivative products. With a relatively small capital investment a trading participant can move the price of a multiple number of underlying assets. Due to their 1) The theory of efficient financial markets is based on the assumption that competition among profit-seeking market participants will ensure that asset prices continuously adjust to reflect all publicly available information; thus prices will equate to the consensus of investors’ expectations about the discounted value of future attributable cash flows ( Paul Woolley “Why are financial markets so inefficient and exploitative” in “The Future of Finance”, Report by The London School of Economics and Political Science, p. 123) 2) CFTC & SEC (2010) Findings regarding the market events of 6th May 2010 – official report published 30th September 2010

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Financing

Figure 2: Feedback Loops

events can have big effects due to risk reduction (stop loss) mechanisms programmed into the HFT trading devices6.

Synchronised selling of risk

Conclusion: How to get the spirit back into the glass bottle Initial Losses

Capital hit, Risk increases

Prices adversely affected

Losses on positions, "Haircuts" go up Prices fall

Investor decides to sell

Investor algo sells on increased volume

HFTs "pass-theparcel"

Volume increases

Source: UK Government Office of Science (2011)

magnitude the derivative markets rather than the underlying markets constitute the benchmark for price determination. In 1998 the value of globally outstanding derivatives was equal to 3 times the GDP. In 2010 this value amounted to 10 times the world GDP while the underlying equity market turnover remained within a range of 1.5 to 2 times3 (see Figure 1). Derivatives markets are to a large extent not transparent as more than 80% of their instruments are traded over the counter (“OTC”), i.e. outside of regulated market infrastructures. Derivatives traded with computer based technology enable market participants to move markets rapidly in accordance with short-term speculation on future market movements. To a large extent derivative exposure is neither collateralized nor subject to balance sheet risk exposure. Modern trading technology also enables the exploitation of arbitrage opportunities by programming automated trading patterns without human intervention, known as “high frequency trading” ( HFT) or “algorithmic trading”4. There have been several studies regarding the question whether HFT is enhancing price trends in volatile markets5. There are different findings in these studies. On the one hand it is emphasized that HFT is adding to market liquidity and in certain circumstances even softens downward price trends. On the other hand, in certain situations like the “flash crash” of May 2010 fully automated HFT may well cause a landslide downturn in equity markets (in this event caused by “mini futures”). A thorough analysis can be found in the Foresight study, according to which HFT can cause non linear sensitivities to price change, i.e. where small

Page 40

Deutsches Eigenkapitalforum 2011

Ideally capital markets shall connect investors’ money with those needing the money for productive usage. The creativity of financial intermediaries has created a virtual liquidity pool that is to a large extent decoupled from the productive economy. Looking at the above considerations there are three main items regarding the trading environment that can be identified as amplifiers for volatility in equity markets: (i) the exorbitant growth in (equity related) derivatives, (ii) the high leverage of derivatives, (iii) the lack of ”capital at risk” for short term oriented trading instruments. All these trading related patterns are interconnected with investors’ reactions. Investors are forced to act in line with short-term oriented price mechanisms (herding effect), even though they may have a different fundamental view on the valuation of assets they have invested in. If policy makers, regulators, exchanges and financial market participants wish to re-establish an efficient price finding mechanism in equity markets they have to tackle these issues in a joint effort. There are proposals up for debate: restrictions of proprietary trading by financial institutions, prohibition of short selling, submission of alternative trading platforms for exchange regulation, transparency requirements for OTC traded derivatives, introduction of a transaction tax and disclosure requirements for trading strategies of alternative investment funds. Among others, the revision of the EU-Markets in Financial Instruments Directive (“MiFID II”) is envisaged to become landmark regulation for the revision of European capital markets. The corporate world reliant on efficient equity capital markets should get deeply involved in the legislative process. It will be a huge challenge to tackle the shortcomings without at the same time doing harm to market liquidity in the underlying equity markets. As always there is no reward without risks.

3) OECD Journal: Financial Market Trends – Volume 2011 Issue 1 4) see “Die Macht der Computer” (“The Power of Computers”) in Frankfurter Allgemeine Sonntagszeitung, 2nd October 2011 5) CFTC & SEC (see Footnote 2); “The Future of Computer Trading in Financial Markets”, Working paper, Foresight Government Office for Science (UK 2011); “High Frequency Trading” White paper by the Goethe Universitaet, Frankfurt am Main (2011) 6) The Future of Computer Trading in Financial Markets, pages 13 sub.: the study concludes that there are internal endogenous risks of trading markets based on feedback loops and increased trading volume 7) The report by the OECD Directorate for Financial and Enterprise Affairs proposes that regulators impose different accounting rules for derivatives as well as transaction charges on derivative transactions and finally consider the separation of certain banking activities that deal in OTC derivatives from retail and commercial banking – see OECD Journal: Financial Market Trends – Volume 2011 Issue 1, page 32

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Financing

Crucial Success Factors in SME Financing How the German “Mittelstand” can prepare for a successful financing process

The German Mittelstand is a crucial pillar of the German economy. It has grown continually over recent decades and has almost become an international brand. As one consequence of these growth patterns, financing instruments for companies from the German Mittelstand have outgrown traditional bank loans by far. Additionally, the global financial and economic crisis, as well as Basel III, resulted in banks increasing their requirements with respect to the reporting quality, compliance with covenants and collateralisation when granting loans. Companies seeking funding from private equity investors or public capital markets as an Initial Public Offering (IPO) or by issuing debenture loans have to fulfil even more restrictive requirements. In order to successfully manage through a (re)financing cycle, SMEs should appropriately prepare for the fulfilment of certain financing prerequisites and success factors.

Markus Kurzhals, Partner, CPA and Tax Consultant, RoelfsPartner

Arndt Rautenberg, Executive Partner, Head of Competence Center Transactions, RoelfsPartner

Market trends in financing the German Mittelstand Increased requirements from capital providers As one result of the internationalisation of the German Mittelstand, the regulation of banks in the context of Basel III and the increased dynamics of the current debt crisis, financing has become more difficult – simply raising conventional loan financing is often not sufficient to replace capital and sustain strong growth. At the same time, banks increasingly use standard selection processes on their current and potential customers where they cluster them in ABC analyses and provide only those companies with necessary future debt volumes which pass that selection process. As a result, a mix of debt and equity financing has become a common solution to SMEs’ financing needs. A snapshot of the financing market quite clearly delivers the following trends: • Standardised mezzanine programs are no longer en vogue. Instead, individualised mezzanine programs with tailored conditions have become much more popular. • Although the issuing of corporate bonds requires a specific company size and brand awareness, this financing alternative is becoming an increasingly common alternative for the German Mittelstand. • Minority interests, in terms of a participation of a private equity investor, are experiencing higher levels of acceptance than in the past.

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Deutsches Eigenkapitalforum 2011

Accompanied by the abovementioned trends, capital providers require increased transparency through monthly management reporting and regular presentations to banks and/or equity providers. Additionally, planning and reporting processes, as well as liquidity and working capital management systems, are subject to regular reviews by these capital providers. These transparency requirements are not only substantial for debt financing as banks set up a selection process. They are also relevant for private equity investors and, even more rigidly, for transactions on the public capital market. Only companies which continue to improve their reporting quality and thus fulfil the new criteria will be successful in their financing process. Companies not adapting to the changed environment might well experience problems in managing a financing process successfully.

Common problems of SMEs One challenge many SMEs have to address is the implementation of an appropriate corporate structure. In situations where sales have increased significantly within a short period and are budgeted to grow further, the company

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Financing

Figure 1: Supporting capital market transactions – Overview

Financial reporting transparency

• Set up and improvement of internal and external reporting processes and structures • Definition of documentation standards • Establishment of accounting principles

2.

Integrated business plan & valuation

• Analysis of historical financial information and identification of value drivers • Business plan & scenario building • Sensitivity analysis

3.

Fact Book / Due Diligence

• Financial / Legal / Tax / Commercial Due Diligence • Analysis and information processing for prospectus preparation as well as for external rating agencies • Q&A sessions

4.

Comfort Letter

• Critical review of information which are the basis for the prospectus preparation • Confirmation of adequate care in respect of the prospectus preparation

5.

Fraud / Risk / Compliance

• Establishment and improvement of risk management and early detection system • Adaption of internal revision to the regulatory requirements of the capital market

1.

Source: RoelfsPartner

structure, as well as reporting tools and processes, often do not expand to the same extent – along with the corporate level of expertise to manage through a growth phase. As a result, companies from the German Mittelstand are not always fully prepared to fulfil increased transparency and reporting requirements. On the contrary – while they continue to do well in their respective markets, they tend to face challenges when trying to obtain sufficient funding to achieve their strategic goals. Another problem which can be observed quite frequently in the German Mittelstand is SMEs’ lack of appropriate contacts or inroads to sources of a required financing. This is true for the debt side, but even more so for all equity related measures. As a consequence, SMEs are often seeking relevant contacts, but more importantly, experience and advice also, to help them match their specific requirements and profile with the criteria of providers of debt or equity capital.

Prerequisites for a successful financing process German Mittelstand companies need to build the basis for a successful financing process early. This includes setting up a transparent financial reporting system, consisting of the preparation of financial reports, the improvement of internal and external reporting processes, the preparation of finan-

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Deutsches Eigenkapitalforum 2011

cial processes (business plan, forecasts, liquidity analysis) or the calculation of covenants. Besides the fulfilment of transparency requirements, further potential prerequisites for a successful financing process are a clear alignment of the financing process to the business strategy and necessary contacts with capital providers. Structuring the process, “beauty contests” and the selection of appropriate partners are key elements of a successful transaction. In addition to these aspects, an effective funding process can be supported by the preparation of an integrated business plan and a fact book/due diligence, the issuance of a comfort letter as well as the fulfilment of fraud/risk/ compliance issues.

Markus Kurzhals, a Partner in the RoelfsPartner Competence Center Transactions, states: “To secure a successful financing process, SMEs have to accurately prepare for increased transparency requirements. However, capital providers also have to acknowledge the specific characteristics of the German Mittelstand!”

Summary Companies seeking funding from banks, private equity investors or the public capital market need to be aware of an entire set of increased requirements for a successful financing process and thus need to prepare early. Key success factors are effective management reporting structures and transparent communication, an early alignment of the funding to the business strategy, and a reliable selection of appropriate partners. SMEs should also consider the fact that a financing and/or M&A process not only requires personnel resources, but also specific knowledge in the field of financial, tax, legal, commercial and operational aspects. Last but not least, the vast diversity of financial sponsors often makes foreign language skills essential. For many German Mittelstand companies, this raises the bar to perform a financing and/or M&A process entirely on their own.

Mediq Group

Berlin, Germany

Manesty Knowsley, United Kingdom

Sale of all assets to

Neustadt an der Weinstraße, Germany

to

WASGAU Produktions & Handels AG

Services GmbH

Pirmasens, Germany

Munich, Germany

Sep 2011

Hüttlin GmbH Schopfheim, Germany

Sale of 100% of the shares to

Capital increase

Oct 2011

Sell-Side Advisory

Sell-Side Advisory

Nov 2011

Acquisition of a minority stake in WASGAU Food Beteiligungs GmbH and conclusion of a cooperation agreement with

Sale of alpha meß-steuerregeltechnik gmbh

Bilfinger Berger Industrial

First Sensor AG

Utrecht, The Netherlands

Cologne, Germany

Sell-side Advisory

Sale of 100% of the shares to

Acquisition of a minority stake in

REWE Markt GmbH

Sep 2011

Bond placement

Merzig, Germany

Munich, Germany

Buy-side Advisory

assist GmbH

DPE Deutsche Private Equity GmbH

Buy-side Advisory

Sell-Side Advisory

“The entrepreneurs among bankers”

SINGULUS TECHNOLOGIES AG Kahl am Main, Germany

7,880,203 shares Placement price: € 3.30 Placement volume: € 26.0 m

KTG Agrar AG Hamburg, Germany

Corporate Bond € 70 m

Bosch Packaging Technology Bosch Packaging Technology

Waiblingen, Germany

Selling Agent

Sole Lead Manager

Waiblingen, Germany

Aug 2011

Aug 2011

Jun 2011

Jun 2011

(selected transactions)

Corporate Finance G

G

G

G

G

Research & Sales

Mergers & Acquisitions Initial Public Offering/ Equity Capital Market Transactions Bond Issues Private Equity Advisory Debt Advisory

G

G

G

G

G

Exclusive member of the European Securities Network (ESN)

Research Support for Institutional Clients Share Placements Share Placements Roadshows

Financial Markets G

G

G

G

G

Designated Sponsoring Shares/Bonds Brokerage Shares/Bonds Specialist Shares/Bonds Bond Placements Electronic Order Routing

equinet Bank AG Frankfurt/Main www.equinet-ag.de Tel. 0049 (0)69 58997-0

Financing

Financing alternatives for “Mittelstand” companies Choosing the right financing instrument and diversification level Since the establishment of bond market segments at German Stock Exchanges, e.g. bondm in Stuttgart and the Entry Standard for Corporate Bonds in Frankfurt, several German Mittelstand companies have participated in the starting retail public bond hype. This hype has been especially driven by a “retail” pricing caused by, inter alia, misunderstood ratings and inexperienced (retail) investors. In the light of the Euro-crisis and the US rating downgrade, investors became more cautious. The market realised that published ratings for “retail” bonds are company ratings rather than issue ratings, which disregard a potential structural subordination of the unsecured bonds vs. any existing secured bank debt. Furthermore, missing covenants increased investors’ risk compared to market standard institutional bonds. Thus, the Bondm Index of the Stuttgart Stock Exchange lost 4.5% since January 2011, while the iBoxx Euro Corporates Overall Performance Index gained 1.5% during the same time period. To avoid any misunderstanding: corporate bond issues are a proven and important financing alternative not only for Mittelstand companies to diversify corporate funding alongside bank and asset based financing instruments. However, such corporate bonds should comply with long-standing market standards, i.e. have adequate covenants, contain clear ratings and at-market pricings. Corporate bonds together with other financing instruments, especially bank and asset based financing, form important parts of a company’s financing strategy. Figure 1: Comparison Bondm vs. iBoxx Index 106 104

Kai Frömert, Director, FCF Fox Corporate Finance GmbH

Asset based financing Asset based financings, such as factoring, leasing (incl. sale-and-lease-back) or a borrowing base working capital facility, might not be the right instrument for everyone. However, depending on a company’s type of business, accounts receivables structure, inventories, fixed asset base, etc. may add an attractive and competitive financing alternative to the “classic” bank loan. While accounts receivables may be recognised by banks as a security for a loan at just 50% of their actual value, factoring can provide a cash payout in excess of 90%. And a (depreciated) fixed asset may only be recognised by banks at book value as a security, while a sale-andlease-back can provide financing at up to 100% of market value. 101,5

102 100 98

95,5

96 94 92 90 Jan 11 Bondm Index

Apr 11

Jul 11

iBoxx Euro Corporates Overall Performance Index

Source: Bloomberg

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Deutsches Eigenkapitalforum 2011

Arno Fuchs, CEO, FCF Fox Corporate Finance GmbH

Okt 11

Corporate bonds The retail Mittelstand corporate bond market has left its juvenile stage and there will be less inexperienced investors purchasing underpriced securities. The market is moving towards the long-standing institutional corporate bond market with existing market standards for more professional, institutional structuring, pricing and “real” investment grade ratings.

April 2011

April 2011

April 2011

April 2011

Übernahmeangebot MEDICLIN AG Prime Standard

EUR 136.983.000 Kapitalerhöhung Prime Standard

EUR 54.000.000 Wachstumsfinanzierung Genussrecht (FK)

Beteiligung und Gesellschafterdarlehen Verkauf

Financial Advisor & Exchange Agent WestLB

Joint Bookrunner Joint Global Coordinator WestLB

Investor (u.a.) WestLB

Lead Investor (u.a.) WestLB

März 2011

ab März 2011

Dezember 2010

November 2010

EUR 143.746.000 Kapitalerhöhung Prime Standard

Aktienrückkauf von bis zu 18.300.00 Aktien Prime Standard

EUR 70.000.000 Wachstumsfinanzierung Hybridanleihe

CHF 297.750.000 Kapitalerhöhung SIX Swiss Stock Exchange

Co-Lead Manager WestLB

Sole Agent WestLB

Investor (u.a.) WestLB

Joint Bookrunner Joint Lead Manager WestLB

Oktober 2010

Oktober 2010

Oktober 2010

September 2010

EUR 78.443.000 Kapitalerhöhung Prime Standard

EUR 79.450.000 Kapitalerhöhung Prime Standard

EUR 33.433.000 Kapitalerhöhung Prime Standard

EUR 419.275.000 Kapitalerhöhung Prime Standard

Joint Bookrunner Joint Lead Manager WestLB

Sole Bookrunner Sole Lead Manager WestLB

Financial Advisor & Listing Agent WestLB

Co-Lead Manager WestLB

August 2010

Juli 2010

März 2010

März 2010

EUR 10.066.000 Kapitalerhöhung Prime Standard

EUR 393.937.000 IPO Prime Standard

EUR 104.650.000 IPO Prime Standard

EUR 57.200.000 Umplatzierung von Aktien der United Internet AG

Sole Lead Manager WestLB

Co-Lead Manager WestLB

Co-Lead Manager WestLB

Sole Bookrunner Sole Lead Manager WestLB

Eigenkapitallösungen – so individuell wie unsere Kunden. Wohin möchten Sie? Ihre Finanzierungsstrategie bestimmt den Kurs, den wir zur Realisierung Ihrer Ziele verfolgen. Hier sehen Sie einige Wege für Eigenkapitallösungen, die wir mit unseren Kunden beschritten haben. Wohin dürfen wir mit Ihnen gehen? Christian Fuest, Tel. + 49 211 826-8612, Leiter Equity Solutions, [email protected]

Partner der Spark assen

Financing

Ratings are not carved in stone As can be seen from the USA example, even an assumed safe AAA government bond can loose its AAA rating quickly. Thus, a today’s investment grade rating may not be investment grade quality tomorrow. Figure 2: FCF Financing Framework

Therefore, a company’s decision process regarding the favoured financing product will change. The question is whether a publicly listed bond will indeed be more favourable than a private placement, as it imposes publication obligations to the issuer. Privately placed bonds still allow a bank-independent funding through institutional investors such as insurance companies or private debt funds, while the reporting requirements are much lower. On the other hand, an undisputed requirement for a private placement usually is a clear investment grade credit quality of the issuer, although an “official” rating by a rating agency might not even be required, as the investors conduct an in-house due diligence. In the case of public bonds, German institutional “blue chip” investors generally require a rating by either Euler Hermes or one of the “big-3” rating agencies (S&P, Moody’s or Fitch). Recent discussions with such investors suggest that, while an Euler Hermes rating has become acceptable, an investment grade rating from other agencies would still be questionable. Investors suspect that during the last two years, there has been a systematic “up-notching” of newly rated companies, similar to the situation in the program mezzanine sector about five years ago, where smaller, riskier companies had been “pushed” into investment grade ratings. Last but not least, promissory notes (Schuldscheindarlehen) are also a type of securitised loans, similar to a privately placed bond. However, as promissory notes are mostly placed within the banking, Sparkassen and insurance sectors, the investor universe is smaller compared to a corporate bond issue, where all kinds of institutional investors can be approached. Furthermore, while bonds are usually fungible and add liquidity to the market, promissory notes are more difficult for investors to sell, thus limiting investor interest. This is, however, somewhat mitigated by the fact that for promissory notes, as well as for private bonds, investors do not have to conduct a mark-to-market evaluation, which is appealing in the light of today’s volatile markets. On the other hand, as the documentation for promissory notes is less extensive than for bonds, it limits transaction costs and may be an ideal entry instrument into the capital markets, especially for smaller financing needs.

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Deutsches Eigenkapitalforum 2011

Bank Financing Loans

Optimization

Capital Markets Financing Private Promissory Public Bonds Notes Bonds

Asset Based Financing Factoring

Leasing

Forfaiting

Borrowing Base Facility

Source: Bloomberg

Bank loans Bank loans are the classic financing instrument, which will never go out of fashion. While the financier universe is actually limited to banks, loans may provide a greater flexibility and – sometimes – more attractive pricing when compared to bonds. Nevertheless, so that it is not fully dependent on banks regarding its financing requirement, a company should – as far as possible – diversify its financing instruments.

Conclusion While not every available instrument may be the right product for each company, one should however investigate which is the best-fitting instrument (or a combination of instruments) to optimise the financing structure in terms of financier diversification, interest burden, security value, redemption schedules, etc. The retail corporate bonds market, as represented by the Bondm Index, has dropped by almost 9% during the last three months, proving that the yield requirements by investors are inclining towards more regular capital markets bond levels. Consequently, rather than jumping on the “retail bond” train late, one should carefully consider all available alternatives – and they may prove to be the more attractive ones.

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2011 Share Placement 114 m EUR Joint Lead Manager Joint Bookrunner

2011 Capital Increase

2011 Convertible

2011 Capital Increase

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325 m EUR Co-Bookrunner

4 m EUR Sole Lead Manager

8 m EUR Sole Lead Manager

2011 Capital Increase

2011 Sale of a majority stake to Centrotec AG

2010 Sale of a majority stake in Behr Group to Mahle Group

2010 Capital Increase

2010 Capital Increase

Exclusive M&A Advisor

Exclusive M&A Advisor

10.2 bn EUR Co-Bookrunner

420 m EUR Co-Lead Manager

2010 Share Placement

2010 Capital Increase

2010 Share Placement

2009 Capital Increase

2009 Capital Increase

21 m EUR Sole Lead Manager

4.2 bn EUR Co-Bookrunner

504 m EUR Co-Lead Manager

25 m EUR Joint Lead Manager

86 m EUR Sole Lead Manager

2009 Convertible

2008 Capital Increase

2008 Capital Increase

2008 Capital Increase

2008 IPO

190 m EUR Co-Lead Manager

39 m EUR Sole Lead Manager

156 m EUR Co-Lead Manager

61 m CHF Sole Lead Manager

361 m EUR Co-Lead Manager

6 m EUR Sole Lead Manager

Landesbank Baden-Württemberg

Financing

Shares, convertibles, bonds and the like What financing alternatives are currently available in Germany to smaller companies?

The unresolved debt crisis affecting several eurozone countries combined with the cloudy economic outlook have led to a marked decline in capital market activity. While equity transactions completed in the German market during the first half of 2011 included nine IPOs totalling EUR 1.3 billion plus another 79 capital increases totalling EUR 18.9 billion, only four companies have dared to enter the equity capital markets so far in the second half of 2011. In total, exchange-listed companies have raised capital of just EUR 0.4 billion since the second half began (as of midOctober 2011). Just how unsettled the capital markets are right now can be measured by the dramatic daily swings – or more specifically, by their volatility. The VDAX index, which gives us the implied volatility in the DAX issues expected by market participants, even gives us a direct measure of this. The higher the level of this index, the greater is the expected volatility. The VDAX typically ranges between 15 and 25 points. Since the start of August, this index has risen dramatically, reaching its year-to-date high of 47 points two months later. By comparison, the VDAX reached its all-time high of 74 points in October 2008 following the Lehman bankruptcy. As volatility rises, it is typical for IPO activity to temporarily dry up. To the extent that the market is open to capital

Dr. Dietmar Schieber is Executive Director Equity & Debt Capital Markets at Close Brothers Seydler Bank AG, Frankfurt am Main. From 2001 to July 2010 he was Director Equity Capital Markets at a major German bank. Prior to that he worked for the German Institute for Share Promotion (Deutsches Aktieninstitut e.V.).

Dr. Dietmar Schieber, Executive Director Equity & Debt Capital Markets, Close Brothers Seydler Bank AG

increases for companies already listed on the stock market, these are generally only possible at deep discounts to the market price. Because abrupt increases in volatility are, in addition, usually associated with falling market prices, this means that exchange-listed companies are likewise keen to explore alternative forms of capital raising in such market environments.

Nearly EUR 2 bn raised Figure 1: DAX and VDAX Points

Points 9,000

80

8,000

70

7,000

60

6,000

50

5,000 40 4,000 30

3,000 2,000

20

1,000

10

0 01 2008

0 07 2008

01 2009

DAX Index (left scale)

07 2009

01 2010

VDAX Index (right scale)

Source: Close Brothers Seydler Bank AG

Page 50

Deutsches Eigenkapitalforum 2011

07 2010

01 2011

07 2011

In terms of the organised capital markets, one alternative broadly available to companies is bonds. Up until the middle of 2010, the public bond market in Germany was generally restricted to large corporations. However, the creation of new bond segments has opened this market to much smaller companies, enabling them since the second half of 2010 to offer their debt securities to a wide base of investors. These segments have been seeing healthy demand for new issues from both publicly listed and privately held companies. In the first full year of existence of these new

Financing

bond segments for German Mittelstand (small- to mediumsized) companies, i.e. from September 2010 through September 2011, we calculate that a total of some EUR 1.7 billion was raised through 38 different bond issues. In contrast to public equity offerings, the transparency requirements which confront the issuer are quite modest. For instance, unlike an IPO on the regulated market, conversion of financial statements to IFRS is not specifically required, and other requirements regarding the content of the offering prospectus are likewise generally much less onerous. The planned issue size should in no case be less than EUR 30 million, with EUR 50 million or more generally recommended so that issuance fees and

expenses are commensurate with issue proceeds. In addition, investors want to see an issue size of at least this amount. Beyond these basics, it is also essential that issuers have demonstrable ongoing cash flows sufficient to support the scheduled interest and principal payments. Bond yields depend on issuer ratings but presently (October) range, not considering a few exceptions, between eight and ten per cent. It should be noted at this point that bonds are not always a substitute for an IPO or share offering. Only an IPO allows risk capital to be placed in the form of true equity, which does not have to be serviced with cash – at least for some initial period of time.

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Financing

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Hardly compelling arguments... It goes without saying that lower transparency requirements are hardly a compelling argument to issue bonds for companies whose shares are already listed on the exchange. In these cases, the existing disclosure obligations in conjunction with their share listings already cover, or go substantially beyond, the disclosure required for a bond issuance. Here we must consider some of the other advantages of turning to the bond market: The issuer becomes less dependent upon bank financing, and covenants for these bond segments are generally quite light, e.g. without restrictions on the use of proceeds, and with payment acceleration (unless otherwise provided) usually only in the event of default or change of control. The bond market, however, has not been immune to the turmoil of the euro crisis. From July through September there was not a single new issue of these Mittelstand bonds. It is only since the end of September that we have seen a total of four such smaller companies dare to bring their bonds to the public market. Only the coming months will show whether this thaw continues.

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Deutsches Eigenkapitalforum 2011

There is yet another alternative to share and bond issues, although one which is inherently limited to exchange-listed companies: an issuance of convertible bonds. Convertibles are hybrid financial instruments which, beyond the scheduled payment of interest and principal like any bond, offer investors the opportunity to exchange the bonds into shares of the company at defined future times. In periods of elevated uncertainty in the equity markets, these instruments may be particularly attractive to investors, who because of their greater sensitivity to risk may not be prepared to make an outright equity investment. The fixed schedule of interest and principal payments while these remain bonds serves to limit the investor’s risk of losses (aside, of course, from credit risk). At the same time, the convertibility feature allows the investor to participate in upside movements in the company’s share price, often referred to as the “equity kicker”. Because these convertible securities are indeed bonds at the time of their issuance, but nevertheless allow creditors to participate in equity gains, opportunities to place these hybrid securities in the market are very broad, including not only specialised convertible bond funds but also a wide range of traditional fixed-income and equity investors.

Cash for future capital increases? From a company’s perspective, the issuance of convertibles is a particularly attractive alternative when share prices have recently been weak, as this generally means that the conversion price is substantially higher than the market price at the time of issue. This higher conversion price, in turn, lessens the dilution effects on existing shareholders. It should furthermore be noted that the coupon rate on convertibles is invariably lower than that of straight bonds without a conversion feature. Finally, should the bonds be converted to shares, the bonds must no longer be repaid, thus relieving the company of this burden on its liquidity. In this case, the issuance of convertible bonds becomes, in essence, cash now for a future capital increase. Under German law, the issuance of convertible bonds requires that the company’s general assembly of shareholders pass a resolution authorising the issuance of the securities, along with a conditional increase of the com-

Financing

> Proven Track Record

pany’s capital. This authority may be granted for a period of no more than five years. The amount of the conditional capital increase, as with other authorisations for future capital increases, may not exceed one half of the company’s existing share capital (Grundkapital) as of the date of such authorisation.

> Global Reach

Opportunities for placing convertible bond issues are, to a significant extent, determined by the size of the issue. The smaller an issue, the tougher it becomes to place it. Experience shows that EUR 100 million is the threshold deal size at which convertible bonds can be most effectively placed. In addition to the size of the convertible issue, the liquidity of the underlying shares also plays an important role. Investors generally expect to see a certain minimum level of regular exchange trading in the company’s shares so that they can hedge in the market if needed. Finally, the secondary-market liquidity of the convertible bonds themselves is an important consideration because, from an investor’s point of view, this may largely determine how quickly a position can be liquidated.

Summary The capital markets may appear to be closed right now, but this is only at first glance. A closer look reveals that, despite the difficult present market environment for equity transactions, straight bond or convertible bond issues present viable alternatives for Mittelstand companies to raise new capital in the public markets.

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Photo: Deutsche Börse AG Berlin

Brussels

Frankfurt a. M.

Deutsches Eigenkapitalforum 2011

Page 53

Beijing Ω Ω

Cambridge Hamburg

Shanghai Ω

Representative Office

Δ

London

Dubai Munich

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Special: Bond Issuance

“Helping bond issuers be ‘fit’ for accessing the capital markets” Interview with Tilo Kraus, Head of Capital Markets & Derivatives, IKB Deutsche Industriebank Conference Magazine: Mr Kraus, IKB has been involved in several bond issues from German small and medium sized companies. What is your experience regarding this? Kraus: From a macro perspective, I believe these new market segments offer sensible and useful financing alternatives for the German Mittelstand. As an institution, we have been involved in a number of issues like Katjes or SIAG. A strong brand like Katjes certainly helps in a placement, however, it is not a prerequisite for a placement. Conference Magazine: And what do investors say? Kraus: Investors can be grouped into retail and smaller institutional investors. At IKB, we do not deal with retail investors, focussing instead on this semi-institutional group. Institutions in particular with a link into the Mittelstand value the emergent segment and see investment opportunities. Liquidity on the secondary market is certainly one focus area for investors. Sooner or later, we should see some form of designated sponsoring emerging here in order to improve market liquidity. Investors also voiced a demand for research – post-issuance research – which is something that we are looking to address going forward. Conference Magazine: None of these bond issuance were particularly large, and they came from a wide range of sectors. What are your prerequisites for support from IKB? Kraus: For a new issue we need internal clearance from a number of departments including IKB’s credit department. Each of those departments has a veto right within the process. Conference Magazine: What would be the specific grounds for such a veto? Kraus: Whilst we cannot predict the future, this process aims to ensure that we assess a potential issuer from various angels. For example, terms and conditions of a bond should reflect conditions which are already standard practice for high-yield bonds, for example restrictions on dividend distribution or regulations covering the sell-off of company divisions. An issuer aiming to raise money in the capital markets should think about offering such covenants and in doing so signals that it is prepared to be governed by accepted capital market provisions.

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Deutsches Eigenkapitalforum 2011

Tilo Kraus heads IKB’s Capital Markets and Derivatives team. He joined in 2009 from UBS. Tilo Kraus is a CFA charterholder and studied business and economics at the Universities of Munich and Warwick.

Tilo Kraus, Head of Capital Markets & Derivatives, IKB Deutsche Industriebank

Conference Magazine: The covenants differed widely between the various bond offerings; as yet, little appears to be standardised. Kraus: True, and for that very reason, I believe there are some risks for investors here. We at IKB are therefore trying to help standardizing and elevating the quality of documentation and covenant templates. Conference Magazine: What is your role in the selection of the market segment? Do you give specific advice on the direction to take? Kraus: We merely advise on what would be a good choice for the issuer in the light of all key factors. At the end of the day, the issuer needs to take the final decision. The requirements of individual exchanges such as Stuttgart, Frankfurt and Düsseldorf do differ in some respects. Key parameters include amongst others regional considerations, the structure of the bond and the target size. Conference Magazine: What is your assessment of the current market for SME bonds? – Around three quarters of prices are under par at the moment. Kraus: Falls in prices were not limited to SME bonds: high yield bonds and leveraged loans have seen similar falls in price. Also, price movements are similar for bonds issued in different markets but by companies in a similar sector such as the solar industry where Centrosolar and Solarworld Bonds are traded in different market segments. In some

Special: Bond Issuance

instances, however, the low liquidity of certain SME bonds has led to veritable price leaps when investors decided to buy or sell slightly larger blocks. Conference Magazine: Returns are now as high as 9%, but most coupons have yet to reach this level. Do you think this divergence can be maintained? Kraus: Coupons for future issuance will to some extend need to reflect the new market levels. Conference Magazine: How high is still “bearable” for an issuer? Kraus: For some issuers, a 9% cost of debt is likely to be too high. Cost, however, is not the only decisive factor for issuers. Reducing dependency on bank financing or spreading out maturities may also be important. Many bond offerings are

motivated by alterations in a corporate’s financing strategy given shrinking bank balance sheets and stricter lending conditions in terms of covenants. So SMEs rightly ask themselves what financing options they will be able to rely on in the years to come. Conference Magazine: How serious will it be when the first “SME bond” fails? Kraus: A “Neuer Markt”-like situation is certainly not desirable. Approval processes and covenants as described before hopefully help to ensure that the market as such focusses on bond issuers that are “fit” for accessing the capital markets. Conference Magazine: Many thanks for speaking to us, Mr Kraus. The interview was conducted by Falko Bozicevic. Advertisement

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© 2011 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft

Special: Bond Issuance

Procedure and challenges of bond issues Financing through bond issues on the capital market is not rocket science

In our estimation, bonds have now become an established part of the toolbox used for company finance. Since, just over a year ago, Dürr AG prominently ventured the step to issue its corporate bond on the capital market on its own (own issue), there has been a far simpler and more economical way of doing this, making a bond issue on the capital market an interesting option for medium-sized enterprises.

Which companies should consider bond issues? In our opinion any company wishing to raise finance in excess of EUR 15 to 20 million can take a bond issue into consideration. A bond is especially interesting if the finance is to be raised independently from a bank and with fewer covenants.

Dr. Anne de Boer works in the field of corporate/capital markets law and has accompanied bond issues by several medium-sized companies. She studied in Germany, France and South Africa and started her professional career as an lawyer in an international law firm before moving to GSK Stockmann + Kollegen in 2005.

Dr. Anne de Boer, Partner, GSK Stockmann + Kollegen

What is the procedure for an issue? What documentation is required? In our experience, a bond issue takes approximately 4–6 months from initial preparation through to commencement of the issue. The placing itself can take up to one year, but it can also be restricted to a core period of 1 to 2 weeks. Issues are regularly accompanied by a bond coach who coordinates the entire process, assisting the issuer above all in structuring the terms and conditions of the bond and the sales channels. Lawyers are required to manage the drafting of the prospectus and the Federal Financial Supervisory Authority (BaFin) the approval procedure. Specialists are also involved as a rule to market the company and the issue.

If the bond is to be included in trading as a public offering or in special trading segments such as the Entry Standard on the Frankfurt Stock Exchange or Bondm on the Stuttgart Stock Exchange, it is necessary to have an approved prospectus in accordance with the laws on securities prospectus. In such a prospectus, the issuer provides comprehensive information on the issuer itself, its business operation and has to publish its audited consolidated or annual financial statements for the past two financial years and possibly half-yearly figures. Depending on the sales channels chosen, documents have to be produced in accordance with distance sales law.

Figure 1: Issue procedure and timeline

Prospectus procedure throught to approval

Draft of prospectus Analysis of needs, the company and the market

4–6 weeks

Structure of the bond, the issue and marketing

4–6 weeks

Structuring of the marketing concept

Source: GSK Stockmann + Kollegen

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Public offering of the bond

Possibly rating process

Deutsches Eigenkapitalforum 2011

1–2 weeks

1–2 weeks up to 12 months

Marketing of the company and of the issue

HOW CAN WE HELP YOU? e Corpora t / IPO finance

Desi gn spon a ted sorin g

Xetra > lead specialis broke t / r

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Special: Bond Issuance

Figure 2: Example for a bond issuance for a medium-sized company Subscription using the stock exchange subscription function (processed via the payment unit)

1-2 weeks

Subscription via the issuer with and without Internet portal 1–2 weeks up to 12 months

Private placing with qualified investors

Selection and agreeme nt with the issuer

Sales support by Selling Agent(s) Source: GSK Stockmann + Kollegen

What is relevant to the terms and conditions of bonds? The terms and conditions of the bond must be adapted to suit the issuer. Termination rights by the creditors in the event of change of control should still allow for a planned IPO the exit of an institutional shareholder or imminent succession at a family company. Financial figures should only be guaranteed if this is unavoidable and provided that future financing remains sufficiently possible in accordance with corporate planning.

How is a bond sold? Naturally all of the sales channels can be used to secure maximum placing of the bond. This does, however, involve higher costs and expenses than if only some sales channels are selected. Experience has taught us that the skill lies in finding a sales structure which is attuned to the respective issuer and is simultaneously cost-efficient.

Transparency & security through subsequent obligations Depending on the trading segment, issuers have to publish their annual financial statements, interim reports, ratings and, if any significant events occur, quasi ad-hoc announce-

ments after the issue as well. The aim of these requirements is to inform investors at an early stage and to ensure that the bonds in these particular segments are of a particular quality.

Are there any special challenges? An important criterion is for the bond issue to mesh with the overall financing. The other finance must permit a bond issue and it must also be possible to comply with the covenants of such other finance when the bond is issued. Medium-sized companies should verify at an early stage in the process whether they have all necessary financial information or whether the company’s history means that an exception can be discussed with the Federal Financial Supervisory Authority (BaFin). Many medium-sized issuers are not fully focussed on the capital market prior to the bond issue. A number of companies use the bond issue to reassess their internal structures and strengthen their focus on the capital market. Furthermore, several issuers and their products are unknown to a wide section of the public so that more targeted public relations are required in addition to the bond issue, also with respect to the company. Here too several enterprises make use of the opportunity to establish a comprehensive marketing strategy when issuing a bond.

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:

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Page 58

Deutsches Eigenkapitalforum 2011

The precondition for an efficient bond issue is a structured process. For some medium-sized issuers this entails a challenge as far as the rating, financial information and prospectus procedure is concerned. But if a company has a good internal team and experienced advisers, this is not rocket science and is absolutely feasible. In addition, a bond issue offers a company the opportunity to structure its internal organisation with a greater focus on the capital market and to obtain first experience on the capital market and also advertise to a wider audience.

Private Banking | Investment Banking | Asset Management | Commercial Banking

Berenberg Bank

German Equity Forum 2011 Tuesday, 22nd November 2011 13:45h | Plenum | Presentation

Emerging Market IPOs: Lessons learnt Going public – experiences and investor reactions Oliver Diehl – Head of Equity Capital Markets, Berenberg Bank Dr. Gebhard Zemke – Partner/Head of China Desk, BDO AG Philipp Melzer – Partner, CMS Hasche Sigle

Tuesday, 22nd November 2011 16:45h | Room Moscow | Panel Discussion

Weak Euro but Order Books at Historical High – Do Capital Goods Companies benefit from the Crisis? Current trends, industry-specific challenges and financing issues Oliver Diehl – Head of Equity Capital Markets, Berenberg Bank Stephan Klepp – Analyst Capital Goods, Berenberg Bank Dipl.-Vw. Marcus Ketter – CFO, Schuler AG Christian Bernert – CFO, KraussMaffei AG Oliver Kuan – CFO, United Power Technology AG Karoline Kalb – IR, WashTec AG

Contact: Boris Kögel Capital Markets · Head of Sales Germany Phone +49 69 91 30 90-740

www.berenberg.com

Special: Bond Issuance

Corporate bonds go “Prime” The Prime Standard for corporate bonds

Corporate bonds are in fashion. After the successful start of the Entry Standard, Deutsche Börse is creating a segment for larger issuers. The success of SME bonds with a direct subscription option for private investors has awakened the interest of larger companies, too. Deutsche Börse is taking notice and will launch a new segment in due course, offering larger companies with correspondingly large issue volumes the opportunity to approach private investors and to list on the stock exchange: the Prime Standard for corporate bonds.

The Prime Standard for corporate bonds The Prime Standard for corporate bonds is aimed at listed and non-listed companies that wish to place an issuing volume of over EUR 100 million. Private investors are to be served, too. A quota of at least 10% must therefore be allocated to “retail” – defined as orders of less than EUR 25,000. The denomination is set at EUR 1,000. If the issuing volume is less than EUR 100 million, the issuer can still be admitted to the segment if annual company turnover is at least EUR 300 million. There are two ways to access the new segment: via the Regulated Market or the Open Market. A listing in the Prime Standard for corporate bonds commits the company to clearly defined transparency requirements.

Photo: Deutsche Börse AG

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Deutsches Eigenkapitalforum 2011

Barbara Georg, Head of Listing & Issuer Services, Deutsche Börse AG

Michael Rieß, Project Manager Prime Standard for corporate bonds in Listing & Issuer Services, Deutsche Börse AG

Two ways of access, one segment Access to the Prime Standard for corporate bonds is either via admission to the Regulated Market or inclusion in the Open Market of the Frankfurt Stock Exchange. In the Regulated Market, the issuer applies together with the accompanying bank for admission to the Regulated Market and to the segment. In the Open Market, a trading participant – called the applicant – initially applies for inclusion in the Open Market. The application for admission to the segment is made by both the trading participant and the issuer. The applicant in the Open Market must fulfill the same requirements as the accompanying bank in the Regulated Market, i.e. it must be a bank or financial services institution with liable equity capital of at least EUR 730,000. For admission in the Regulated Market or inclusion in the Open Market, the admission respectively inclusion requirements for the relevant market must, of course, be fulfilled. Whichever means of access is chosen, universal acceptance requirements for the segment must be fulfilled: a short company profile (with important information about the bond), an issuer rating and 24 finalised company figures must be provided. A rating does not need to be provided if the issuer already has shares admitted to the General or Prime Standard of the Frankfurt Stock Exchange. If covenants have been agreed in addition, the issuer must include these in the short company profile.

Special: Bond Issuance

Follow-up requirements The Prime Standard for corporate bonds sets more extensive follow-up requirements than the Entry Standard. These comprise the publication of the annual and semi-annual reports, two interim reports by the company management (after the first and third quarters), an up-to-date short company profile, an annual issuer rating, 24 finalised company figures and the publication and distribution of important company announcements. Additional transparency is provided by an analysts’ conference, which must be held once a year for credit investors.

Positioning Apart from the conditions concerning issuing volume and denomination, the Prime Standard for corporate bonds does not set any requirements for the structure of the bonds. Bonds with a flexible coupon and subordinate bonds may be admitted to the segment. However, they must be clearly indicated to provide investors with the important information. Larger issuers, in particular, wel-

Photo: Deutsche Börse AG

come greater flexibility in bond structuring. For retail clients – including “friends and family” programs –, placing bonds and acceptance for trading on the same Deutsche Börse platform increases the chance of successful placement, favourable conditions, higher trading quality and liquidity. The Prime Standard for corporate bonds is the logical extension to the Entry Standard for bonds, particularly for issuers that want access to new groups of investors and to demonstrate a high level of transparency. It thus also rounds off Deutsche Börse’s offering in the area of debt financing. Advertisement

Eigenkapitalforum 2011 Wir sehen uns! Stand Nr. 1.02 E · 21.–23. November 2011

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Special: Bond Issuance

“The pipeline is still full to bursting” Interview with Axel Haubrok, Managing Director, Haubrok Investor Relations

Around three quarters of “SME bonds” listed are trading under par. What is the future for SME bonds? Conference Magazine spoke to Axel Haubrok about the current market situation and what an issuer needs to offer if a placement is to be successful. Conference Magazine: Mr Haubrok, what is your assessment of the current situation? Haubrok: Interest from business is still considerable. In structural terms, the situation is such that interest should continue growing, for banks are no longer able to provide traditional business loans at such attractive conditions. This is because the banks themselves need greater security. More and more businesses are also realising that company finance need not be based solely on bank loans. Conference Magazine: You were involved at the very beginning at Rena and MAG-IAS, then Uniwheels. Things have quietened down somewhat since then. What has happened? Haubrok: One reason for the slowdown is market uncertainty. Bonds no longer “place themselves”, and potential issuers have therefore become more cautious. One look at the current issuance environment is enough to see the initial euphoria has gone. Yet the bond issuance pipeline is still full to bursting – companies are just waiting for the right moment. Conference Magazine: What exactly do you look for when approached by a potential issuer?

Axel Haubrok, Managing Director, Haubrok Investor Relations

Haubrok: We check that the companies can really be placed. Of course, you cannot be 100% sure beforehand, but there are certain criteria which give an indication of whether an issuance will be successful. These criteria include the profile of the company and the rate of interest. A key criterion for bond issues is naturally also that the issuer is able, in the long term, not just to pay the interest but also to repurchase the bond. Conference Magazine: With or without the “right” bank on board? Haubrok: This is a very interesting development, on which there are now two schools of thought. There are those who were instrumental in establishing the market for SME bonds and who do not see support from an underwriter as absolutely necessary. Then there are those who believe only a bank can successfully establish firm contact with investors. Interest on the part of retail investors has fallen due to rather indifferent bond performance. Companies must therefore consider in exactly which constellation it would be best to place a bond. Yet here too, there are differences depending on size, timescale, etc. Whether or not to go public with a bank is a question which must be assessed on a case-to-case basis. Conference Magazine: What kind of a tool is this system? Haubrok: It is a subscription tool which can be used in more or less all situations. It allows the issuer to process

Photo: Bilderbox.de

Page 62

Axel Haubrok is CEO of Haubrok Investor Relations. The company founded in 1991 has supported more than 50 companies with their IPO communication and assists roughly 25 companies as part of ongoing capital market communication and about 150 annual general meetings a year.

Deutsches Eigenkapitalforum 2011

Special: Bond Issuance

subscription itself throughout the entire issue period. The old system is tied to specific partners.

period of time. The fact that many of these bonds are currently listed under par is quite simply down to the time.

Conference Magazine: Returns are now as high as 9%, but most new-issue coupons have yet to reach this level. How do you see this situation developing? Haubrok: I believe this divergence can be maintained – some companies have listed shares, and their security and valuation is different. For companies like this, coupons at 7% is already high. We will continue to see this large spread in the future. When SME bonds first appeared, we talked to a number of banks. Many took the view that companies – such as Air Berlin – were now trying, through the capital market, to obtain terms from retail investors which they would not be given in the banking sector. But that was only possible for a certain

Conference Magazine: How serious would it be if an “SME bond” was to fail? Haubrok: Such a failure is bound to come sooner or later. Initially, it would of course create uncertainty. We must, however, remember that it is higher risks which underlie higher interest rates – investors should realise that a higher rate of interest ultimately means a greater risk. Conference Magazine: Many thanks for speaking to us, Mr Haubrok. The interview was conducted by Falko Bozicevic.

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Capital Market

Confidence has to be restored European IPO markets, quo vadis?

What was meant to become a robust year for European IPOs – fuelled by expectations of sustainable corporate growth, increased investor appetite to re-allocate funds into equities, attractive valuation levels and a healthy pipeline of high-quality listing candidates – turned out to be one of the most challenging periods in IPO markets for over a decade. In fact, 21 of 50 European IPOs have been postponed or withdrawn since the beginning of 2011 with none of the successfully priced transactions currently trading above issue price (Source: Dealogic). Recurring macroeconomic turmoil fuelled by contagion risk of structurally challenged European countries and a looming global growth scare added to investors’ scepticism of European IPOs as an asset class. In particular, a dramatic sell-off since the summer across sectors and exchanges which has sent equity indices down by approx. 30% within a matter of weeks has caused investors to reduce overall risk exposure.

“Poor vintage 2011”? In fact, one needs to think very hard to identify the limited number of IPOs to date which should be defined as successful, namely earning both issuers’ and investors’ money. With the final quarter of the year underway, it would probably be too early to classify 2011 as a “poor vintage” in the European equities cycle – however, investors seem to have lost faith in IPOs as an attractive source of alpha as secondary markets are muddling through arguably the most challenging environment since the fall of Lehman Brothers in 2008. Nevertheless, there are strong signs that Europe’s closed IPO market will re-open strongly in the beginning of 2012. Many of the factors that ruined the confidence of equity issuers and investors, such as market volatility brought on by an ineffectual response to the region’s sovereign and bank-funding woes, now seem to be waning. Conditions are improving, albeit with risks not entirely dissipated. But IPO markets never stay shut for long – typically a few months during periods of severe economic distress. So, it is reasonable to expect a healthy revival of share issuances in

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Deutsches Eigenkapitalforum 2011

Johannes Borsche, Managing Director Johannes Koehler, Managing Director, IBD, Morgan Stanley* Morgan Stanley**

early 2012. With that in mind, there are a few aspects of the IPO process that could benefit from further scrutiny and adherence to ensure that the forecast lift-off of the market in 2012 is robust.

Syndicate size Several European IPOs, irrespective of transaction size and complexity, have been executed by an oversized syndicate line-up. The resulting battle amongst the banks for “air time” with both management and investors has obscured visibility on process responsibility and diluted the banks’ market advice. While an IPO is admittedly an attractive opportunity to reward established banking relationships, the early selection process should be more focussed on market expertise and judgment. Amid the current difficult market backdrop, those qualities should take priority over the existence of other criteria, such as for example a bank lending relationship.

*) Johannes Borsche, Managing Director IBD, has served Morgan Stanley since 2000. Before, he used to work for Deutsche Bank as a Vice President. Mr. Borsche holds a degree in Economics and Business Administration. **) Johannes Koehler, Managing Director, joined Morgan Stanley in 2011. He worked at renowned institutions such as JP Morgan and Merrill Lynch. Mr. Koehler studied Economics, Banking and Finance in Germany and the USA.

Capital Market

Importance of the company delivering post-IPO The first earnings release post-IPO is one of the most important events in the lifetime of a publicly listed company – it reinforces the confidence in the equity story and can act as a positive catalyst for the company’s share price performance. However, most recently, several issuers have failed to meet the markets’ expectations in this regard.

Early familiarisation with Investors Fund managers and buy-side analysts increasingly gripe that their involvement in the IPO process is confined to very late stages of a transaction. It is critical for the success of any European IPO going forward, to arrange the preparatory work streams in such a way that they allow for sufficient interaction between management and investors as early as possible. For example, concerns about potentially adverse reactions from investors are largely overrated when a dualtrack process goes down the M&A route after investors have devoted a considerable amount of time. Investors appreciate spending time with industry-leading executives, irrespective of the transaction’s outcome.

Book building dynamics Banks have witnessed at various instances that the participation of an increasing number of investors is almost exclusively driven by the demand momentum generated during the book building process. The “books covered” message often triggers buy orders with limited fundamental conviction. This behaviour is partly due to insufficient

Die Unternehmer-Anwälte

lead time for investors to educate themselves around an issuer. Therefore, European syndicates and issuers must be diligent in managing the granularity of communication around the book building progress.

Valuation expectations The objective of any company is to issue shares at a price as close to fair value as possible. Hiring syndicate banks to achieve that level of valuation has nurtured an overly aggressive and overpromising pitching culture. Inherent in this quest for maximum value lies the well-documented dichotomy between issuers and the investors. The latter are looking to buy at a discount in order to generate early performance, while the former aim to sell as close to fair value as possible. This balancing act is often misunderstood. So, it is vital for the beneficial co-existence of issuer and buyer that banks intensify educational efforts around this topic. The discount should be understood to relate to the lack of a public trading record rather than to the quality of an issuer relative to its peers.

Outlook Thankfully, there are various potential IPOs with highly attractive equity stories scheduled for 2012. They will provide ample opportunities to refine marketing and execution tactics, assuming that confidence in the IPO process, so damaged by unchecked sovereign debt and bank-funding woes, can be restored. As long as issuers, advisors and the buy-side remain mindful that they are all ultimately sitting in the same boat, they should be able to collectively weather stormy waters towards a new era of successful IPOs as a tool of sustainable value creation.

Deutsches Eigenkapitalforum 2011

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Page 65 ^^^S\[OLYSH^ÄYTJVT

Capital Market

The Dual Track Process An IPO as a real alternative to a trade sale or secondary buy-out

After an increased IPO activity in the first half of 2011, the IPO market has closed in the second half as a result of the sovereign debt crisis. However, in recent years the exits initiated by private equity sponsors have been a major fuel for German initial public offerings (IPOs) and for companies with the right profile, an IPO still represents an attractive exit alternative to a trade sale or secondary/tertiary buyout. This is evidenced by German market statistics; since 2006 more than 50% of all IPOs in the Regulated Market/Prime Standard and ten out of nineteen Prime Standard IPOs in 2010/11 have been triggered by financial sponsors. As the M&A practice has changed over years with auctions becoming commonplace and processes often being front loaded (vendor assistance, vendor due diligence, stapled finance) to ensure a clean exit on favourable terms, sellers pursuing a dual track increase the likelihood of being able to sell all or parts of its interest in the target at best pricing.

Advantages clearly outweigh challenges Properly conceived and executed, the dual track process offers significant upside potential for the seller resulting from the interplay of the specific characteristics of a concurrently pursued IPO and M&A process and an expansion

Christoph Vigelius is Director at equinet Bank AG, Frankfurt. Prior to that he worked for PricewaterhouseCoopers AG and Dresdner Bank AG.

Christoph Vigelius, Director, equinet Bank AG

of the kind and number of bidders. With a target company well suited for an IPO, the seller will be able to increase the certainty of the proposed exit. Further prospective purchasers will be incentivised to bid higher in order to offer an attractive alternative to an IPO valuation. Also, selling a target company primed for an IPO will increase seller’s power to negotiate favourable terms in the purchase agreement. Given that, and considering that in the IPO and M&A valuation methods vary, it should be easier for sellers to demonstrate to its investors that valuation has been maximised. Even potential purchasers can benefit from a dual track. Besides an increased transparency level of the target, financial bidders in particular can gain insights into the possibility of its own IPO exit. From our market experience these upside potentials clearly outweigh the challenges for the seller and the target, including the increased complexity of the dual track process and higher transaction costs.

Sellers benefit from process synergies

Photo: Deutsche Börse AG

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Deutsches Eigenkapitalforum 2011

Synergies in the dual track process mainly result from aligning interests of the seller and the involved target management in the process, as target management often prefers an IPO over a private sale with regard to its own interests and independence. Both IPO due diligence and prospectus drafting provide a head start for M&A

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Industries & Sectors

Is cleantech still an investible theme? With cleantech stocks down by more than 40% in 2011, investors increasingly ask this question

Clean, green and alternative energy is seen by many as exciting investments for the future. Some see it as the most exciting investing opportunity for the next 50 years and many compare it to earlier technology revolutions like telephony, the computer and the Internet. Growth rates have indeed been impressive. The global market for solar photovoltaics (PV) has expanded from just USD 2.5bn in 2000 to 71.2bn in 2010 for example, representing a compound annual growth rate (CAGR) of 40%. The global market for wind power has similarly expanded from a global market worth USD 4.0bn in 2000 to more than USD 60.5bn today, for a CAGR of 31.2%. And these growth rates are not limited to solar and wind energy. Other clean-tech sectors such as hybrid electric vehicles, green buildings and smart grid have seen similarly spectacular growth rates. Despite the strong growth profile, cleantech stocks have recently significantly underperformed the overall market. In what is a very challenging market environment global stock indices like the Standard & Poor’s is flat for the year or the FTSE 100 fell by 8.7% respectively. Cleantech stocks however are down by more than 40% compared to the beginning of this year. How could this happen given the renewed interest in alternative energy after the Fukushima disaster in March 2011 and a still ongoing debate around climate change?

What explains the underperformance? First and foremost, investors found out that most of clean technology depends on government subsidies to make them a viable alternative to carbon-based energy. And they have learnt that government incentives cannot only disappear in the future, but that even retrospective cuts are possible, think of Spain and the Czech Republic and their retrospective cuts to solar feed-in-tariffs. With tight government budgets this perceived risk has increased dramatically in 2011. Furthermore, investors have started to understand that cleantech is a scale game. Contrary to the internet or software it involves manufacturing and the need to get production costs down through reengineering and scale effects. This means cleantech resembles other much more capital intensive industries like semi-conductors or mobile handset manufacturing and just think of its fallen angels like Motorola

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Deutsches Eigenkapitalforum 2011

Dr. Martina Ecker is a member of the Investment Banking division of Jefferies International Limited, Frankfurt branch. Jefferies International is authorised and regulated by the UK Financial Services Authority.

Dr. Martina Ecker, Managing Director, Jefferies International Limited

or Nokia. Finally, no other industry has so quickly become global with manufacturing rapidly moving to China and other Asian countries. China declared both solar and wind as strategic industry and massively supported its companies with state loans. In solar alone for instance, the Chinese government backed banks invested almost USD 10bn in 2011 and thereby motivated Chinese players to invest into (over) capacity which is now a drag on pricing and competitive positioning. A massive shake-out of the industry is expected in the next 12 months and it is still unclear who will survive and who will disappear either through a takeover or even more likely through receivership.

So, where to invest? This backdrop makes investing challenging. A portfolio approach investing in a number of companies in a certain sector and hoping that the star performers will outweigh the losers simply does not work, it is all about picking the right companies. And, although there is a lot of uncertainty in all cleantech sectors, some general observations driven by over-arching trends can be made.

Relying on subsidies – long-term sustainability? Sectors with high reliance on subsidies have historically underperformed, even in an environment of robust funda-

Industries & Sectors

mentals. The retrospective changes to solar feed-in-tariff in Spain and the Czech Republic highlight that point. Sectors with relatively low reliance on subsidies, such as LED companies or smart grid companies, should outperform their peers in sectors dependant on feed-in-tariffs such as solar and wind.

ongoing investment to continue being significant players. This can be a challenging proposition for public investors if earnings growth trails behind and cash flows are negative. Taking this into consideration, sectors with an asset light model are preferable.

Differentiation through intellectual property Consumer centric adoption cycles are usually shorter Furthermore adoption cycles should also be an important area of assessment. More consumer driven applications like LED, roof-top solar or biofuels are more consumer centric and therefore easier to adopt. Sectors which rely on utilities to adopt them usually suffer from long-sales-cycles and intransparent decision-making processes. This makes it difficult to predict and it is not clear that the best technology will win.

Significant capital expenditure leads to negative cash-flows Another important criterion is total capital expenditure needed for a business to succeed. The majority of cleantech sectors like solar, wind, biomaterials, etc. rely on

Finally the opportunity to create intellectual property and turn this into a long-term competitive advantage should also be a key metric. This is particularly important as most of the manufacturing will eventually move to Asia and will be a game around scale and efficiencies. Sectors with lots of potential for IP are Smart Grid, Energy Efficiency and the upcoming sector of Green Chemicals are in the long-term more likely to allow for differentiating IP than solar and wind, where most likely manufacturing excellence and sales will be key drivers. In summary, it is fair to say that cleantech follows the path of other high-growth, technology driven sectors like biotech, IT or telecoms. As in these sectors the potential opportunity is great but can only be unlocked by investing smartly and selectively and not in a portfolio approach. Advertisement

Industries & Sectors

Clean energy and the capital market The big energy-turnaround: gamble or sound investment story?

Tulips , rail transport , internet , WAP technology , nanotechnology or football – in its long history, the stock market has seen many investment stories come and go. The nerve-racking up and down of the former great white hope photovoltaics and solar has left many investors disillusioned. However, stock market players are creative and promptly present a successor: clean energy is the new buzz propelled by the energy turnaround as determined by the German Bundestag and the dramatic events in Fukushima. Are these simply old concepts, disguised as new? Probably. However, unlike in the past, the new approach is not only discussed by avid environmentalists , but has gained weight and dynamics as it is based on inexorable megatrends and therefore concerns an ever broader strata of society. On the one hand, it is quite clear that rapid population growth as forecast by the UN and the associated economic boom will further drive global demand for primary goods such as water, food and energy. On the other hand, the environmental impacts this growth will cause might reach a scale that would choke reasonable progress. Without counter measures, a total collapse of the climate would be the final stage of this route. The friction between population growth and climate change has long since been recognised by the public as well as in the political and economic sphere. So what can be done?

The mega-trend is still there The key to meeting these challenges is efficiency . Climbing commodity prices and more stringent regulations on environmental issues will drive and determine efficiency improvements as the paramount aim of entrepreneurial activities for decades to come. The clean energy sector is currently simply going through a consolidation and maturation process typical for young industries, however, unfortunately in a particularly difficult macro-economic environment. Writing off the clean energy investment story altogether would be highly premature. The underlying megatrend is still there and growth opportunities in the energy and environmental technology sectors are enormous, albeit requiring major investments. Against the backdrop of the current debt and banking crisis, there is limited potential

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Deutsches Eigenkapitalforum 2011

Heike Härtl, Landesbank Baden-Württemberg

Dr. Stefan Steib, Landesbank Baden-Württemberg

that states and the credit sector will provide capital. In the longer term, (growth) companies therefore depend more than ever on the stock market to raise equity capital. What are the criteria that companies need to fulfil if they wish to gain access to the stock market?

Do not forget about the special characteristics of issuers To start with, the company profile needs to come up to the minimum criteria of the capital market, which are constantly changing over time, and they need to be able to present a proof of concept. A crucial criterion was and is a company’s convincing and robust investment case. In addition to that, the capital concept needs to take the special characteristics of the issuer into account in order to ensure that the investment case is reliably anchored in the capital market. While larger corporations naturally tend to replace a high amount of shares from the parent company or the financial investor in their capital market transactions, often in the form of spin-offs, which conforms quite well to the capital market, transactions of medium-sized issuers normally involve a capital increase as the core aspect of the investment case. Concerns on the part of investors are to be expected if capital market transactions are supposed to finance company growth on the one hand, while the inflow of funds is to be mainly generated at the level of existing

Industries & Sectors

shareholders using a high replacement component, on the other. Moreover, existing shareholders and the company need to be realistic with regard to the issuer’s fair value. This also includes an awareness of maintaining conventional market mechanisms such as a situation-driven, adequate price discount on the fair value as a purchasing incentive. In addition to the above-mentioned minimum criteria, the current situation of the capital market and related preference of investors with regard to minimum liquidity of market capitalisation and transaction volume are also crucial. Particularly in phases of high capital market volatility and high uncertainty in company outlooks, investors prefer large-volume capital market transactions by established companies with adequate market capitalisation as well as a relevant track record. Therefore, investors tend to be rather cautious with regard to investing in medium-sized companies in times of high market volatility.

Conclusion The multi-facetted field of clean energy investments is here to stay and will keep market participants engaged for decades to come. In order to manage the change successfully and

Photo: Bilderbox.de

to be able to benefit from new opportunities, the required capital needs to be provided. The debt and banking crisis substantially restrict the scope of state investments and the credit sector. This makes the stock market the most promising source of equity offering feasible solutions. However, at the moment only those clean energy companies fulfil the requirements of a sustainable investment story that not only conform to the relevant minimum criteria and the (temporary) willingness to take risks on the part of investors, but also show the flexibility to potentially accept market-driven adjustments. Advertisement

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Sponsors

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Network Partners

Media Partners

Organizers & Co-Initiator Deutsche Börse KfW Bankengruppe Ernst & Young

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Main Sponsors Berenberg Bank Close Brothers Seydler Bank AG DZ BANK AG equinet Bank AG FCF Fox Corporate Finance GmbH Istanbul Stock Exchange Jefferies International Limited Landesbank Baden-Württemberg Renell Wertpapierhandelsbank AG Silvia Quandt & Cie. AG Thomson Reuters

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Sponsors BDO AG Wirtschaftsprüfungsgesellschaft CMS Hasche Sigle GSK STOCKMANN + KOLLEGEN Haubrok AG HSBC Trinkaus & Burkhardt AG

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IKB Deutsche Industriebank AG Morgan Stanley RölfsPartner Taylor Wessing WestLB AG

98 98 100 100 100

Partners bwcon Baden Württemberg: connected Creathor Venture Management GmbH DVFA GmbH HPE Holland Private Equity PvF Investor Relations STEP Award

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Network Partners BVI BVK BVMW DIRK – Deutscher Investor Relations Verband High-Tech Gründerfonds Zero2IPO Group

Page 104 104 104

102 102 102 103 103 103

105 105 105

Media Partners BIOCOM AG BOND MAGAZINE - Institutional Investment Publishing GmbH Börsen Radio Network AG Börsen-Zeitung business new europe (bne) CNBC-e DAF Deutsches Anleger Fernsehen AG Dow Jones Private Markets dpa-AFX Wirtschaftsnachrichten GmbH FINANCIAL GATES GmbH FinanzNachrichten.de GoingPublic Media AG International Herald Tribune IR Magazine mergermarket n-tv Nachrichtenfernsehen GmbH Neue Zürcher Zeitung Phoenix CNE RiD Real Estate Information GmbH VDI Verlag GmbH

Page 106 106 106 107 107 108 108 108 109 109 110 110 110 111 111 111 112 112 112 113

Organizers

Deutsche Börse AG Phone E-mail Website Address

KfW Bankengruppe Contact Person Phone E-mail Website Address

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+49-(0) 69-211 1 88 88 [email protected] www.deutsche-boerse.com/listing Mergenthalerallee 61 65760 Eschborn Germany

Infocenter der KfW Bankengruppe +49-(0) 18 01 24-11 24 [email protected] www.kfw.de Palmengartenstr. 5-9 60325 Frankfurt Germany

Deutsches Eigenkapitalforum 2011

As one of the world’s leading exchange organizations, Deutsche Börse Group provides investors, financial institutions and companies access to global capital markets. Our business covers the entire process chain from securities and derivatives trading, clearing, settlement and custody, through to market data and the development and operation of electronic trading systems. With a high value on stock liquidity, Deutsche Börse Group serves the interests of listed companies as well as investors, offering its professional and efficient listing platform and services. A signature feature of the Deutsche Börse service & event portfolio is the German Equity Forum, Europe’s largest networking platform in the field of equity financing. For further information, please visit www.deutsche-boerse.com/listing.

KfW as a promotional bank applies expertise and strength to sustainably improve the economic, social and ecological conditions of peoples’s lives. Established in 1948, KfW is owned 80% by the Federal Republic of Germany and 20% by the federal states (“Länder”). With a balance sheet total of more than 400 bn€, KfW is one of Germany’s five largest banks. As a bank with no branch network or customer deposits, it refinances its lending business almost exclusively in the international capital markets. Its function is to contribute to the continuous growth of the economy and society. As a promotional bank, the KfW is devoted to the guiding principle of sustainability, integrating aspects that are important for the economy, the environment and social cohesion.

Co-Initiator

The global Ernst & Young organization is a leader in assurance, tax, transaction and advisory services. It makes a difference by helping its people, its clients and its wider communities achieve their potential. Worldwide, 141,000 people are united by shared values and an unwavering commitment to quality. In Germany, Ernst & Young comprises some 6,900 people at 22 locations. Ernst & Young GmbH Contact Person Phone E-mail Website Address

Dr. Martin Steinbach +49-(0) 61 96-9 96-1 15 74 [email protected] www.ey.com Mergenthalerallee 3-5 65760 Eschborn Germany

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Main Sponsors

Berenberg Bank Contact Person Phone E-mail Website Address

Boris Kögel +49-(0) 69-91 30 90-7 40 [email protected] www.berenberg.de Bockenheimer Anlage 3 60322 Frankfurt am Main Germany

Close Brothers Seydler Bank AG Contact Person Dr. Dietmar Schieber Phone +49-(0) 69-9 20 54-1 96 E-mail [email protected] Website www.cbseydler.com Address Schillerstr. 27-29 60313 Frankfurt Germany

DZ BANK AG Contact Person Phone E-mail Website Address

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Kersten Schmitz +49-(0) 69-74 47-9 20 99 [email protected] www.dzbank.de Platz der Republik 60265 Frankfurt am Main Germany

Deutsches Eigenkapitalforum 2011

Berenberg Bank was founded in 1590 and with assets under management of over 25 bn€ and more than 1,000 employees is one of the leading private banks in Germany. Due to our partnership structure, we are independent of corporate interests and feel first and foremost committed to our clients, so that we are able to make swift decisions and to act fast. We moreover have direct access to international fund managers. This gives us excellent opportunities for the execution and placement of capital increases and makes sure that we are perceived as a competent partner. We support our clients’ investment decisions by bringing them into direct contact with the managing boards of listed companies.

Close Brothers Seydler Bank AG focusses on mid-sized companies. Core business areas are Designated Sponsoring, Corporate Finance, Equity & Fixed Income Sales & Trading, Research and Floor Specialist Trading on the Frankfurt Stock Exchange. The bank is market leader in Designated Sponsoring with more than 200 mandates. The Equity & Debt Capital Markets team assists with the planning, structuring and placement of transactions. Institutional investors are serviced by the Equity & Fixed Income Trading team, offering access to leading institutional investors in the key European markets. Close Brothers Seydler Research AG provides expert analysis on mid-sized German companies. Close Brothers Seydler Bank AG offers corporate clients professional management of their securities and associated services.

DZ BANK forms part of the German cooperative financial services network, which comprises more than 1,100 local cooperative banks. Within the cooperative financial services network, DZ BANK AG functions both as a central institution for over 900 cooperative banks and their 12,000 branch offices and as a corporate bank. DZ BANK offers a full range of equity capital markets products and services. The product portfolio includes e.g. initial public offerings, capital increases, convertible bonds, participation certificates, equity-research and corporate actions like designated sponsoring, employee participation programs, share-buyback-programs, public take-over, going private, delisting, squeeze-outs, block trades, paying and depositary agent as well as the conversion into registered shares.

Main Sponsors

equinet Bank offers tailor-made solutions for all financing and capital market issues. As the entrepreneurs among bankers, we are a partner of credibility and integrity with a special grasp for mid-sized companies. With our corporate finance and M&A expertise, combined with an universal bank status, we develop and implement individual solutions. Financial investors and banks value our advanced trading and sales services and research products of the highest quality. equinet Bank is the exclusive partner for the European Securities Network (ESN) in Germany.

equinet Bank AG Contact Person Phone E-mail Website Address

Gerald Diezel +49-(0) 69-5 89 97-2 00 [email protected] www.equinet-ag.de Gräfstr. 97 60487 Frankfurt am Main Germany

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Main Sponsors

FCF Fox Corporate Finance GmbH Contact Person Arno Fuchs Phone +49-(0) 89-20 60 40 90 E-mail [email protected] Website www.fcfcompany.com Address Burgstr. 8 80331 München Germany

Istanbul Stock Exchange Contact Person Nazli Gamze Aksu Phone +9-(0) 2 12-2 98 21 00 E-mail [email protected] Website www.ise.org Address Istanbul Menkul Kıymetler Borsası Reşitpaşa Mah. Tuncay Artun Cd. Emirgan 34467 Istanbul Turkey

Jefferies International Limited Contact Person Phone E-mail Website Address

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Michael Harbisch +49-(0) 69-71 91 87-5 00 [email protected] www.jefferies.com Bockenheimer Landstr. 24 60323 Frankfurt am Main Germany

Deutsches Eigenkapitalforum 2011

FCF is a Corporate Finance Boutique specialising in arranging, structuring and placing equity and debt capital for privately owned and publicly listed small-/midcap companies. FCF provides its clients with growth-financing, acquisition-financing and/or refinancing advice and services, supporting them in implementing an effective, capital markets oriented capital structure while reducing their dependency on traditional bank financing.

The Istanbul Stock Exchange (ISE) offers investors access to a diverse range of financial products through a wellorganized, transparent and reliable platform. ISE plays a pivotal role in the development of Turkish capital markets and the Turkish economy as a whole and is now proudly moving forward with its global vision of making Istanbul an international financial hub. For further information, please visit our website at www.ise.org.

Jefferies, the global investment banking firm, has served companies and investors for nearly 50 years. Headquartered in New York, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage and securities research, as well as wealth and asset management. With 3,750 employees worldwide, the firm provides research and execution services in equity, fixed income, currencies and commodities markets, and a full range of investment banking services with all businesses operating with 30+ offices in the U.S., Europe and Asia.

Main Sponsors

Landesbank Baden-Württemberg (LBBW) is a universal bank with regional roots. In approx. 210 branches and representative offices and at selected overseas locations – including New York, London, Singapore and Seoul – at the end of 2010, 13,061 employees were working for the success of the LBBW Group. Together with the legally dependent institutions Baden-Württembergische Bank, Rheinland-Pfalz Bank und Sachsen Bank, LBBW is active in a variety of banking activities. LBBW assists companies in equity financing and provides support in IPOs, capital increases, convertible bonds, public takeover bids as well as secondary and private placements. Since 1996, it has taken part in more than 200 equity issues, of which more than 100 were initial stock market listings.

Landesbank Baden-Württemberg Contact Person Phone E-mail Website Address

Jobst Bartmer +49-(0) 7 11-12 72 50-20 [email protected] www.lbbw.de Am Hauptbahnhof 2 70173 Stuttgart Germany

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Main Sponsors

Renell Wertpapierhandelsbank AG Contact Person Phone E-mail Website Address

Marc Renell +49-(0) 69-1 33 87 65 00 [email protected] www.renellbank.com/de Schillerstr. 2 60313 Frankfurt am Main Germany

Renell Wertpapierhandelsbank AG is a long-established and steadily expanding specialist at the Frankfurt Stock Exchange. Founded in 1985 by Peter Renell, we are still 100% family owned and in the second generation of successful work for our clients at the Frankfurt and Berlin Stock Exchanges as well as NYSE Euronext. With the acquisition of the specialist mandates from TriTrade GmbH, we are considered to be a top player in the market. In addition to lead broking and Xetra® specialist trading, Renell Bank offers designated sponsoring, brokerage and proprietary trading, and provides IPO support for German and foreign companies, primarily SMEs. True to our philosophy ‘man is the measure!’, the personal aspect is not a contradiction. Instead, it is a principle that guides our business and our success.

With 50 professionals, the owner-managed Silvia Quandt & Cie. AG offers comprehensive Investment Banking services. The service scope encompasses Institutional Brokerage, Investment Research, Corporate Finance and Real Estate Investment Banking.

Silvia Quandt & Cie. AG Contact Person Phone E-mail Website Address

Thomson Reuters Contact Person Phone E-mail Website Address

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Robin Huber +49-(0) 69-95 92 90 93-04 [email protected] www.silviaquandt.de Grüneburgweg 18 60322 Frankfurt/Main Germany

Carsten Lock +41 (0)-2 722.3633 [email protected]/sales www.thomsonreuters.com Friedrich-Ebert-Anlage 49 60327 Frankfurt Germany

Deutsches Eigenkapitalforum 2011

Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals. Through our worldwide footprint, technology capabilities and content offerings we can help financial firms scale their presence and business agility. Thomson Reuters Elektron is a simple-toaccess global network that links the world’s financial institutions. The shared platform provides connectivity to all key markets and liquidity pools via a single access point, reducing complexity, cost and time to market. It delivers access to realtime data from 350+ exchange and OTC markets, 14 million instruments, along with proprietary news, evaluated pricing, reference data, tick history and third party content, at the speed and depth of information a firm requires, as well as providing analytics and other value-added services.

Professional support from start to finish. An eye for the essential. We drive transaction support to a new level. Arndt Rautenberg Head of Competence Center Transactions

Our Competence Center Transactions offers professional support for professionals. And indeed for all companies that value professional advice in the transaction process. We accompany you every step of the way, focusing on all the major aspects of your project from an interdisciplinary base. In particular, we help you make the right decisions rather than just providing you with a report.

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Sponsors

BDO AG Wirtschaftsprüfungsgesellschaft Contact Person Dr. Gebhard Zemke Phone +49-(0) 40-3 02 93-5 25 E-mail [email protected] Website www.bdo.de Address Ferdinandstr. 59 20095 Hamburg Germany

BDO is one of the five leading companies for accountancy, tax and business law consulting and advisory services. At 25 locations in Germany, BDO attends to medium-sized companies and large capital market oriented corporations from various industries. Altogether, roundly 1,900 employees in Germany generated approximately 180 m€ in total fee income in 2010. BDO is a founding member of the international BDO network which operates in 119 countries with approximately 46,000 employees. With an industryoriented organizational set up and interdisciplinary teams, BDO develops solutions tailored for the clients’ individual needs. With an industry-oriented organizational set up, BDO set standards for offering effective audit and consulting services.

Dr. Andreas Zanner +49-(0) 69-7 17 01-2 56 [email protected] www.cms-hs.com Barckhausstr. 12-16 60325 Frankfurt Germany

CMS Hasche Sigle is one of the leading commercial law firms in Germany. More than 600 lawyers, tax consultants and notaries advise clients ranging from mid-sized companies to major groups on all aspects of national and international commercial law. With our strong, trust-based client relationships, extensive presence and highly qualified advice, we can help you achieve your objectives. Our assistance for your company is built around a comprehensive range of outstanding services and the personal commitment of the best specialists for your particular matter. A long-established local presence in nine key German business locations and ever-closer links with partner firms in the international CMS organisation with over 2,800 lawyers in 27 countries set us apart from other commercial law firms.

GSK STOCKMANN + KOLLEGEN Rechtsanwälte Wirtschaftsprüfer Steuerberater Contact Person Dr. Peter Ladwig Phone +49-(0) 7 11-2 20 45 79-0 E-mail [email protected] Website www.gsk.de Address Kronenstr. 30 70174 Stuttgart Germany

GSK Stockmann + Kollegen is one of Germany’s leading corporate and real estate law firms. With more than 135 lawyers in Germany, Brussels and Singapore, and as a member of an alliance of legal firms with over 830 lawyers, we advise both German and international clients. We deal with all matters relating to corporate structure and finance, in particular, stock exchange listing, bond issues, investment and mezzanine finance, M&A and company succession. In these contexts, we draw on many years of experience with respect to all capital market issues, the selection, structuring and successful implementation of share issues, prospectus procedures, capital market communication and other corporate transactions relating to the stock exchange. We offer solutions.

CMS Hasche Sigle Contact Person Phone E-mail Website Address

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Deutsches Eigenkapitalforum 2011

Sponsors

Haubrok Investor Relations is your partner for a successful communication with the financial community. Since 1990, we have partnered over fifty companies through their stock exchange listing. As of today, we are still active for many of these mostly small and mid cap companies. We advise them on all matters concerning equity and fixed-income transactions, reporting and the daily capital markets communications business. The services we provide are based on the personal and professional abilities of our staff. Together with our clients, we develop optimal communications solutions for a wide range of capital market transactions.

Haubrok AG Contact Person Phone E-mail Website Address

Ursula Querette +49-(0) 89-2 10 27-5 22 [email protected] www.haubrok.de Landshuter Allee 10 80637 München Germany

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Sponsors

HSBC Trinkaus & Burkhardt AG Contact Person Phone E-mail Website Address

IKB Deutsche Industriebank AG Contact Person Phone E-mail Website Address

Anke Ohm +49-(0) 2 11-9 10-25 44 [email protected] www.hsbctrinkaus.de Königsallee 21-23 40212 Düsseldorf Germany

Dr. Jörg Schröder +49-(0) 2 11-82 21-41 01 [email protected] www.ikb.de Wilhelm-Bötzkes-Str. 1 40474 Düsseldorf Germany

HSBC offers in Germany comprehensive capital market know-how of a global operating investment bank with a local highly-personalised service culture. Our customers benefit from the resources and the international network of one of the world’s largest and most capable banking groups, HSBC. For their long-term capital markets success our corporates can expect tailored and consistent solutions in all areas of equity support. We have been one of the leading designated sponsors in Germany for many years now. The large number of our client base also reflects the outstanding quality of our services for mid-cap and smallcap enterprises.

IKB Deutsche Industriebank AG (“IKB”) is a specialist bank for corporate financing in Germany and Europe. Its target groups are German and European enterprises and private equity companies. As a provider of specialist banking and financial services in addition to consulting, IKB has a strong connection to medium-sized German businesses. Its focussed business model is based on long-standing customer relationships. The Bank offers a broad range of products and innovative solutions to problems as well as access to the capital markets. IKB is based in Düsseldorf and also has branches in six German and four European cities.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 42 countries. Morgan Stanley Contact Person Phone E-mail Website Address

Page 98

Johannes Borsche +49-(0) 69-21 66-15 07 [email protected] www.morganstanley.com Junghofstr. 13-15 60311 Frankfurt Germany

Deutsches Eigenkapitalforum 2011

For further information about Morgan Stanley, please visit www.morganstanley.com.

By your side – worldwide.

There is more in capital markets than IPO! Besides our extensive experience in international IPOs and listings, our portfolio of advice comprises all other aspects in relation to capital markets. 6EMWMRKSJHIFX½RERGIERHFSRHMWWYERGIWEVISRP]X[SWYFNIGXW ;IEVIPSGEXIHMRXLIOI]½RERGMEPQEVOIXWSJXLI[SVPH*VSQ2I[=SVO ZME*VEROJYVXERH0SRHSRXS,SRK/SRK¯SYVI\TIVXWEVISRWMXI 7EPERWMWERMRXIVREXMSREPJYPPWIVZMGIPE[½VQ[MXLQSVIXLER PE[]IVWSTIVEXMRKJVSQSJ½GIW[SVPH[MHI We have particular expertise in the emerging markets of Europe and Asia. -R+IVQER]QSVIXLERJIIIEVRIVWJVSQSYVSJ½GIWMR&IVPMRERH *VEROJYVXTVSZMHIPIKEPEHZMGIEXMXWFIWX 3YVWTIGMEPETTVSEGLMWXLIQYPXMHMWGMTPMREV]ERHGVSWWFSVHIVXIEQ[SVO FIX[IIRSYVPE[]IVW*SVMRWXERGI[I[SVOGPSWIP]XSKIXLIV[MXLSYV GSPPIEKYIWMR-WXERFYPERH/]MZ

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Sponsors

RölfsPartner Contact Person Phone E-mail Website Address

Taylor Wessing Contact Person Phone E-mail Website Address

WestLB AG Contact Person Phone E-mail Website Address

Page 100

Markus Kurzhals +49-(0) 2 11-69 01-2 76 [email protected] www.roelfspartner.de Grafenberger Allee 156 40237 Düsseldorf Germany

Stephan Heinemann +49-(0) 69-9 71 30-0 [email protected] www.taylorwessing.com Senckenberganlage 20-22 60325 Frankfurt Germany

Christian Fuest +49-(0) 2 11-8 26-86 12 [email protected] www.westlb.de Herzogstr. 15 40217 Düsseldorf Germany

Deutsches Eigenkapitalforum 2011

With 750 employees at 11 sites in Germany, RölfsPartner is a leading independent business consultancy and auditing company within Germany. Strong team orientation and a holistic approach to the provision of consultancy services characterise the RölfsPartner credo: accountants, lawyers, tax advisors, management consultants and restructuring specialists working together on an interdisciplinary basis, offering a wide range of specialist and client-oriented services. Its interdisciplinary competencies are pooled within the Competence Centres Financial Services, Fraud • Risk • Compliance, Private Clients, Public Sector, Real Estate, Restructuring and Transactions. Through its membership of Baker Tilly International, RölfsPartner is represented by a staff of 25,000 employees in 120 countries.

Taylor Wessing is a European full service law firm with over 750 lawyers in Germany, France and the UK as well as further offices in Belgium, China and the U.A.E. Our capital markets practice is one of the largest in Europe, with genuine cross-border capability, offering a flexible onestop-shop service through our network of partners and offices on pan-European matters. We act for clients from the technology and know-how fields, leading investment banks, financial services companies, bidders and target companies at a national and international level through all phases of public takeovers. Our particular expertise in capital markets law and regulation allows us to effectively deal with the increasing notification and reporting obligations of quoted companies in various jurisdictions.

WestLB AG is a commercial bank with firm roots in NorthRhine Westphalia, Germany’s largest federal state. WestLB’s key strengths include the close and strategic alliance with the savings banks and its expertise in structured finance, corporate banking, capital markets business and transaction services. WestLB employs a total of 4,473 full-time staff (as of December 31, 2010). With an integrated equity approach, WestLB offers the whole range of investment banking products including private placements, IPOs, capital increases and mezzanine products for German and international clients. It is one of the key players for equity solutions and belongs to the leading Corporate Brokers in Germany acting as Designated Sponsor for about 40 companies.

Partners

bwcon Baden Württemberg: connected Contact Person Stefanie Springer Phone +49-(0) 7 11-9 07 15-3 56 E-mail [email protected] Website www.bwcon.de Address Breitscheidstr. 4 70174 Stuttgart Germany

Creathor Venture Management GmbH Contact Person Ute Molders Phone +49-(0) 61 72-13 97 20E-mail [email protected] Website www.creathor.de Address Marienbader Platz 1 61348 Bad Homburg Germany

DVFA GmbH Contact Person Phone E-mail Website Address

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Karin Wenzel +49-(0) 69-26 48 48-1 01 [email protected] www.dvfa.de Mainzer Landstr. 47a 60329 Frankfurt am Main Germany

Deutsches Eigenkapitalforum 2011

Baden-Württemberg: Connected e.V. (bwcon) is the top business initiative promoting Baden-Württemberg as a high-tech location. bwcon connects more than 460 companies and research institutes. Currently more than 4,600 experts are benefiting from systematic networking via the bwcon hub. With its fields of activity bwcon: ICT network, bwcon: creative and bwcon: Health Care, bwcon is creating a base for the cross-sectoral usage of technologies and an interdisciplinary cooperation. The network promotes young and growing companies via the bwcon: CyberOne Hightech Award and the extensive counselling and coaching programme Coach&Connect plus+ in the Network for Business Excellence. This includes an extensive range of counselling and coaching, events and workshops.

CREATHOR VENTURE currently manages funds of over 150 m€ in total and invests up to 10 m€ in high-tech companies in the sectors of IT, telecommunication, media, life science, new materials, nanotechnology and cleantech. The management team at Creathor Venture includes the founder of former Technologieholding, Dr. Gert Köhler, as well as Ingo Franz and Karlheinz Schmelig. With more than 20 years of experience in the venture capital market, the Team has been acting as lead investor for more than 200 companies, participating in over 20 IPOs and numerous, successful trade sales. Creathor venture has its roots in Germany and is investing in Europe with focus on Germany, France, Switzerland and Austria.

DVFA is the society of investment professionals in Germany, founded in 1960. Currently, DVFA has more than 1,400 individual members representing over 400 investment firms, banks, asset managers, consultants and counselling businesses. DVFA is a leading qualifier for the capital market in Germany with more 3,500 graduates altogether. DVFA is also a leading platform for financial communication (organiser of analyst conferences and forums). DVFA offers investment professionals access to a worldwide network via EFFAS – European Federation of Financial Analysts Societies, with more than 17,000 investment professionals in Europe, and ACIIA – Association of Certified International Investment Analysts, with more than 60,000 investment professionals worldwide.

Partners

Holland Private Equity (HPE) is an expansion capital investment firm providing equity (no leverage) in minority investments. Companies we invest in are local technology champions in the Benelux and Germany with an ambition to accelerate growth. Investing tickets of 10 to 20 m€ per company for a minority stake and using the expertise of our network of financial and operational veterans, we have a hands-on approach in helping companies grow revenues from 15 m€ to beyond 100 m€. Key areas in which we add value to our portfolio companies include international sales and marketing, capacity ramp-up, buy-and-build and back-office professionalization.

PvF Investor Relations provides advice and support in financial communications with corporate clients in all fields of business. PvF offers the full range of IR and PR services, in terms of content and strategy, in the identification of specific target groups and the implementation of individual communication methods and measures, as well as the preparation of annual, interim financial and sustainability/CSR reports. Based in Eschborn next to Deutsche Börse as well as in Berlin, in the Rhein-Neckar region, and in Jinan (Shandong Province), China, expertise, experience, independence, and a high quality standard define PvF’s way of working. Both partners act as lecturers at the Frankfurt School of Finance for the professional training of future Certified Investor Relations Officer (C.I.R.O.)

The STEP Award is a competition designed to recognize innovative growth companies in Germany, Austria and Switzerland. The initiators, Infraserv Höchst and F.A.Z.Institut Innovation Projects, are pursuing the same goal together with numerous sponsors and partners: to give companies in their growth phase an important boost in their successful development. The STEP Award focusses on the pharmaceutical, chemical, life science, biotechnology, nanotechnology, medical engineering and greentech – businesses that are considered the sectors of the future.

HPE Holland Private Equity Contact Person Phone E-mail Website Address

PvF Investor Relations Contact Person Phone E-mail Website Address

Tim van Delden +31-(0) 20-7 14-34 00 [email protected] www.hollandprivateequity.com Gustav Mahlerplein 109/111 1082 M Amsterdam Netherlands

Jörg G.H. Peters +49-(0) 61 96-7 77 99-11 [email protected] www.pvf.de Hauptstr. 129 65760 Eschborn Germany

STEP AWARD Spirit to expand

STEP Award Contact Person Phone E-mail Website Address

Michael Klapproth +49-(0) 69-75 91-30 28 [email protected] www.step-award.de Mainzer Landstr. 19 60326 Frankfurt am Main Germany

Deutsches Eigenkapitalforum 2011 Page 103

Network Partners

BVI Bundesverband Investment und Asset Management e.V. Phone +49-(0) 69 15 40 90-0 E-mail [email protected] Website www.bvi.de Address Bockenheimer Anlage 15 60322 Frankfurt Germany

BVK Bundesverband Deutscher Kapitalbeteiligungsgesellschaften e. V. Phone +49 (0)-30 30 69 82-0 E-mail [email protected] Website www.bvkap.de Address Residenz am Deutschen Theater Reinhardtstr. 27c 10117 Berlin Germany

BVMW - Bundesverband mittelständische Wirtschaft, Unternehmerverband Deutschlands e.V. Phone +49-(0) 30 533206-0 E-mail [email protected] Website www.bvmw.de Address Leipziger Platz 15 10117 Berlin Germany

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Deutsches Eigenkapitalforum 2011

BVI Bundesverband Investment and Asset Management represents the interests of the German investment fund and asset management industry. BVI`s offices are located in Berlin, Brussels and Frankfurt. Its 83 members currently handle assets of 1.8 trillion € in both investment funds and mandates. BVI enforces improvements for fund-investors and promotes equal treatment for all investors in the financial markets. BVI`s investor education programmes support students and citizens to improve their financial knowledge. BVI`s members directly and indirectly manage the capital of 64 million private clients in 21 million households. (BVI’s ID number in the EU register of interest representatives is 96816064173-47). For more information, please visit www.bvi.de

The German Private Equity and Venture Capital Association (BVK) is the representative of the German private equity industry covering private equity firms, from venture capital through growth capital to buyouts, as well as institutional investors. It is the mission of the BVK to create best possible environmental conditions for the industry in Germany. This requires improving tax and legal environmental conditions for private equity in Germany in dialogue with political and administrative decision-makers, facilitating the access to capital sources, surveying the markets and analysing market trends, and supporting our members in exchanging their experience. To achieve this, systematic industry communication is fundamental like the BVK pursues it together with its more than 320 members.

The German Association of Small and Medium-sized Enterprises (short the BVMW) is the largest voluntarily organized association of medium-size enterprises in Germany. Together with its partners, the BVMW represents altogether 150,000 SME’s (small and Medium-sized Enterprises) in Germany. Since it becomes for SME´s ever more important to operate internationally, the BVMW helps its members actively. A large network of enterprises in Germany is worldwide supported by partner offices worldwide since 2006, focussing in particular on Eastern Europe, the Middle East, Asia and North and South America – areas where it expects the most activities in future. Additionally a pool of experts is available, whose members can help almost in all regions of the world.

Network Partners

DIRK is the association for Investor Relations (IR) in Germany. As the organ of IR professionals, DIRK represents the concerns of its members in an active dialogue with interest groups and capital market stakeholders, political institutions and the general public. The association offers its members active, specific support and promotes regular exchange among its own ranks and with IR specialists from all over the world. With its more than 330 members, DIRK sets the standards of communication between companies and the capital market. The spectrum of companies organised within DIRK includes almost all DAX companies and the bulk of companies listed in the MDAX, SDAX and TecDAX as well as small companies and those which have not yet made their IPO or issue debt instruments.

High-Tech Gründerfonds invests in young, high potential high-tech start-ups. The seed financing provided is designed to enable start-ups to take an idea through prototyping and to market launch. Typically, High Tech Gründerfonds invests 500,000 € in the seed stage, with the potential for up to a total of 2 m€ per Portfolio Company in follow-on financing. Investors in this public/private partnership include the Federal Ministry of Economics and Technology, the KfW Banking Group, as well as twelve industrial groups of ALTANA, BASF, B.Braun, Robert Bosch, CEWE Color, Daimler, Deutsche Post DHL, Deutsche Telekom, Qiagen, RWE Innogy, Tengelmann and Carl Zeiss. High-Tech Gründerfonds has about 560.5 m€ under management in two funds (272 m€ HTGF I, 288.5 m€ HTGF II).

Founded in 1999, Zero2IPO is a leading integrated service provider in the China venture capital and private equity industry. Now, Zero2IPO has become an unbeatable deal flow and networking source in China. Zero2IPO’s mission is to be the preferred service provider to businesses in the venture capital and private equity industry by offering an unparalleled knowledge and expertise to our clients and partners. To ensure this, Zero2IPO provides a broad and deep array of services (Zero2IPO Research, Zero2IPO Events, Zero2IPO Capital, Zero2IPO Ventures, Zero2IPO Partners, PEdaily.cn) enabling entrepreneurs and investors to reach the next level of success. Zero2IPO Group is headquartered in Beijing with offices in Shanghai, Shenzhen, Hong Kong, and Silicon Valley.

DIRK - Deutscher Investor Relations Verband e.V. Phone +49 (0)-40-41363960 E-mail [email protected] Website www.dirk.org Address Baumwall 7 20459 Hamburg Germany

High-Tech Gründerfonds Management GmbH Phone +49-(0) 228-82300-100 E-mail [email protected] Website www.high-tech-gruenderfonds.de Address Ludwig-Erhard-Allee 2 53175 Bonn Germany

Zero2IPO Group Contact Person Phone E-mail Website Address

Jesmine Zhao +86 (0)-10 84580476-8058 [email protected] www.pedaily.cn/en/ 1266 Nan Jing Rd. (West) 200040 Shanghai China

Deutsches Eigenkapitalforum 2011 Page 105

Media Partners

BIOCOM AG Contact Person Phone E-mail Website Address

BIOCOM AG. Biotechnology, life sciences, knowledgebased bioeconomy, medical technology – each of these terms embodies hope and confidence in advances for humankind. Science, research and technology create the foundation, politics and capital are the prerequisites for implementation, companies bring the results to market. Information and communication are indispensable at every stage of process. Oliver Schnell +49-(0) 30-26 49 21-45 [email protected] www.biocom.de Stralsunder Str. 58-59 13355 Berlin Germany

BOND MAGAZINE - Institutional Investment Publishing GmbH Contact Person Christian Schiffmacher Phone +49-(0) 81 71-4 18 04-91 E-mail [email protected] Website www.fixed-income.org Address Bahnhofstr. 28 82515 Wolfratshausen Germany

Börsen Radio Network AG Contact Person Phone E-mail Website Address

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Wolf Roth +49-(0) 9 21-74 13 40-7 [email protected] www.brn-ag.de Denzenlohestr. 47 95500 Heinersreuth Germany

Deutsches Eigenkapitalforum 2011

Experienced industry and scientific specialists at BIOCOM AG have been tracking the development of biotechnology from research to market for more than 25 years. Content-driven and success-oriented, enthusiastic about the subject and always committed to the customer.

Founded in October 2006, Institutional Investment Publishing GmbH is an independent publisher of magazines on institutional asset management and corporate finance topics. October 2009 saw the publication of ”BONDBOOK”, the first independent bond magazine in German-speaking Europe. A complement to BONDBOOK, “BOND MAGAZINE”, is published bimonthly and addresses current topics (bond issues and investments).

Börsen Radio Network is producing audio interviews all around stock exchange and markets since 1999 already. Our focus: the professionally prepared talk with CEOs, CFOs and deciders of listed companies, analysts and market experts. Actually we are Germany’s leading provider of original interviews. Our partners use our podcasts, audiostreams for enhancing customer retention and mean residence time on their website. Also available for SmartPhone. Create your individual solution from our up-to-date daily programme, use our bundle packages at low monthly rates or use our know-how for realizing your own concepts, such as e.g. a market entrance in Germany. Make yourself heard – we are looking forward to receiving your call and to making you topic of conversation for a million listeners per month.

Media Partners

Börsen-Zeitung: Germany’s only daily Newspaper for the financial markets The Börsen-Zeitung compiles facts and researches background information to give a daily information edge. The Börsen-Zeitung covers banking and finance, capital markets, companies and sectors as well as economy and policy. Sound background reports and detailed analyses make the Börsen-Zeitung an important decision-making tool for the financial markets. On its website www.boersenzeitung.de displays the contents of the paper as well as a large of investment-related data combined with tools for proper analysis.

business new europe (bne) was set up in 2006 by a group of journalists who have been covering emerging Europe for more than a decade. It remains the only English-language publication that covers all 30 of the countries of “new Europe” – Central, Eastern and Southeast Europe, as well as the former Soviet Union. bne covers business, economics, finance and politics in these dynamic new markets and while there is a fair amount of reporting by wires on the “what” of the story, there is almost no commentary on the “why” which is bne’s core function.

Börsen-Zeitung Contact Person Phone E-mail Website Address

Thorsten Dieterle +49-(0) 69-27 32-5 63 [email protected] www.boersen-zeitung.de Düsseldorfer Str. 16 60329 Frankfurt Germany

business new europe (bne) Contact Person Elena Arbuzova Phone +7-(0) 9 16 00-1 55-10 E-mail [email protected] Website www.bne.eu

If you have questions, please contact: [email protected]

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Civil engineers at work traditional formwork systems have limits – the sustainable VST-System pushes these limits. The VST group is a European company based in Austria. Being innovative in developing of construction technologies the VST Group covers all fields of project management and acts as building contractor. The VST Group overtakes the given solutions on hand successfully with its self-developed, patented, sustainable VST permanent formwork system. The result is like a tailor made suit for the client in an unbelievably good quality and with an amazing speed. This result is achieved by using an off-site construction method under industrial circumstances which will have a bright future in tomorrow´s markets.

VST VERBUNDSCHALUNGSTECHNIK GesmbH Contact Person Siegfried Gassner Tel: +43 (0) 2235/81071 Fax: +43 (0) 2235/81071 – 715 E-Mail: [email protected] Feuerwehrstrasse 17 2333 Leopoldsdorf Castle Leopoldsdorf Vienna Austria

Media Partners

CNBC-e Website

www.cnbce.com

DAF Deutsches Anleger Fernsehen AG Contact Person Katarina Dziamski Phone +49-(0) 92 21-90 51-6 62 E-mail [email protected] Website www.daf.fm Address Börsenplatz 5 60313 Frankfurt am Main Germany

CNBC-e is the world’s one of the best hybrid examples, successfully combining economy and entertainment content under the same brand and Turkey’s the only finance-business TV channel. It was established on October 16, 2000, as a result of cooperation of the world’s leading business channel CNBC and the Group’s entertainment channel, Kanal e. CNBC-e has two different programming formats and took its day-time format from American CNBC and content from Dogus Media Group. In the daytime, CNBC-e targets business professionals and individual investors, providing real-time access to economic and market data. During the evening line-up, CNBC-e turns into an entertainment channel, offering award-winning films, popular series, dramas and important organizations in their original language with Turkish subtitles. CNBC-e cooperates with the giants of the industry, such as; HBO, WB, MGM, Paramount, Buena Vista, Sony Columbia and Fox etc.

DAF Deutsches Anleger Fernsehen – offers access to up to date news from the finance sector for private investors. The programme focusses on the investor´s value of benefit by covering the markets considering the whole bandwith from blue chips to small & midcaps. Every hour Boerse Live highlights the current situation at the stock markets. Via video conference system analysts, institutional fund advisors, journalists, and insiders state their opinion on the situation. Our DAF-correspondents report live from the German Stock Exchange in Frankfurt and the New York Stock Exchange. DAF is offering one of the largest financial video-on-demand archives in Germany. The DAF programme can be reached on TV via satellite and cable-networks and is also integrated in a wide range of online-portals.

The right news and data for today’s dynamic marketplace

Dow Jones Private Markets Website

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www.dowjones.com www.dj.com/venturefurther

Deutsches Eigenkapitalforum 2011

Dow Jones Private Equity & Venture Capital offers integrated solutions for the deal-sourcing, due diligence and compliance needs of today’s private capital investors, fund managers and advisors. Our suite of products delivers the most trusted data and insight on developments around the world – before they happen and as they happen. With Dow Jones Private Equity & Venture Capital, you gain deep market knowledge and insight for a clear business advantage, whatever your market or strategy.

Media Partners

Faster business insights – dpa-AFX Wirtschaftsnachrichten GmbH is one of the leading news agencies for German and English language real-time financial and economic news. With a worldwide network of journalists, dpa-AFX provides independent, reliable and fast news on international financial and economic developments – as articles, radio and video reports. dpa-AFX delivers news to banks, financial service groups and the media to enable them to provide their customers and employees with financial news on the internet, intranet or via terminals. It is part of a worldwide network of 1,500 journalists and so is represented in the most important financial locations of the world. More information on www.dpa-AFX.de.

Since its founding in 2001, FINANCIAL GATES has grown into a leading publishing house of finance-related crossmedia platforms. We are majority-owned by the F.A.Z. Group, the publishing house of Germany’s leading daily F.A.Z. We have successfully staked out a relevant position in the financial services ad market through our flexible and efficient positioning services. Our flagship publications speak to three distinct core target groups: 1.) CFOs of private-sector companies (the German magazine ”FINANCE” and the English “FINANCE in Emerging Europe”, “FINANCE Europe” magazines); 2.) treasurers of municipalities and public-sector companies (newspaper “Der Neue Kämmerer”); 3.) shareholders, founders and CEOs of large family owned businesses (“wir” and “Markt und Mittelstand” magazines).

dpa-AFX Wirtschaftsnachrichten GmbH Contact Person Marion Köhler Phone +49-(0) 69-9 20 22-4 57 E-mail [email protected] Website www.dpa-afx.de Address Gutleutstr. 110 60327 Frankfurt Germany

FINANCIAL GATES GmbH Contact Person Phone E-mail Website Address

Dione Bork +49-(0) 60 31-73 86-17 03 [email protected] www.finance-magazin.de Bismarckstr. 24 61169 Friedberg Germany

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FinanzNachrichten.de Contact Person Markus Meister Phone +41-(0) 44-6 83-1 01 E-mail [email protected] Website www.finanznachrichten.de Address Zollikerstr. 27 8008 Zürich Switzerland

GoingPublic Media AG Contact Person Phone E-mail Website Address

International Herald Tribune Contact Person Phone E-mail Website

Page 110

Daniela Gebauer +49-(0) 89-2000 339-13 [email protected] www.goingpublic.de Hofmannstr. 7a 81379 München Germany

Jörg Müller +49-(0) 6 90-71 67 79-15 [email protected] www.global.nytimes.com/?iht

Deutsches Eigenkapitalforum 2011

FinanzNachrichten.de is the leading financial news portal in the German language and one of the biggest financial websites on the German market. Whilst financial portals usually only offer news gathered from their own in-house journalists, FinanzNachrichten.de offers a wide spectrum of news from different media in different countries. FinanzNachrichten.de offers around 11,000 financial news per day, in German or English, from more than 400 different media sources. The website has 16 million page impressions and 4 million visits per month (IVW) by 530,000 users (AGOF). According to surveys, 87% of the users are men, around 41% of the users hold an academic title and half of the users are buying/selling shares at least once a week. FinanzNachrichten.de – www.finanznachrichten.de

GoingPublic Media AG is one of the leading publishers of magazines on capital markets, corporate finance and technology trends. In addition to the “GoingPublic Magazin” – the modern magazine on capital markets –, the “VentureCapital Magazin” stands as a hub for the German speaking private equity and venture capital industry. The magazine “Smart Investor” addresses retail investors. For M&A-professionals the “M&A REVIEW” is monthly published. The quarterly “HV Magazin” focusses on trends with shareholder meetings. The publication “Unternehmeredition” addresses small & medium-sized entrepreneurs. With 16,000 recipients, “DIE STIFTUNG” is the magazine with the highest coverage in the German speaking non-profit foundation sector. The “BondGuide” reports on the growing market for corporate bonds.

The International Herald Tribune, the global edition of The New York Times, is the world’s daily newspaper. Edited in Paris and printed in 40 key cities, the IHT provides the best coverage of the changing face of Europe, its future and its place in the world. The IHT has long served the global business executive with a broad and comprehensive report on news as it shapes world and regional economies. With its Business with Reuters section offering deeper reporting, clear market information and authoritative insights from the best analytical writers around, the IHT continues to combine insightful business reporting with perceptive coverage of geopolitics, security and society.

Media Partners

IR magazine and www.InsideInvestorRelations.com together form the definitive source of information for the global investor relations community. Launched in 1988 at The Economist, IR magazine is the essential business tool for anyone involved in raising capital for companies and for others who communicate regularly with analysts and investors. This includes IROs, CEOs, CFOs and corporate communications professionals at publicly traded companies worldwide. Over the years we have seen investor relations evolve dramatically. As the industry’s primary editorial voice, we have played an integral role in that growth. And as consistent IR practice continues to be an essential part of a company’s business strategy, we remain committed to providing investor relations professionals with an unrivalled source of news, reviews, updates, research, benchmarking tools, networking events, feature articles and advice on best practice IR.

mergermarket is an independent Mergers and Acquisitions (M&A) intelligence service with an unrivalled network of dedicated M&A journalists based in 56 locations across the Americas, Europe, Asia-Pacific, the Middle-East and Africa. Unlike any other service of its kind, mergermarket specializes in providing forward-looking origination and deal flow opportunities integrated with a comprehensive deals database – resulting in real revenues for clients.

n-tv, Germany’s first news channel, standing for reliable, fast, comprehensive and independent news: 24 hours a day, 365 days a year. From main office in Cologne, studios in Berlin, Frankfurt a.M. and with a global network of correspondents n-tv informs about the latest news from politics, economy, sports and society. n-tv is known for its live and breaking-news coverage. Day-to-day, n-tv offers cutting-edge stock market news, enterprise news and service-formats – investigated solidly, processed understandably and presented competently. Political talks, magazines and documentations complete the programme. In line with the company motto “Any time, any place”, n-tv has transformed itself into a cross-media information service, supplying content via all platforms and all media formats.

IR Magazine Contact Person Phone E-mail Website Address

mergermarket Contact Person Phone E-mail Website Address

Claire Lavery +44-(0) 20 7107 2555 [email protected] www.insideinvestorrelations.com Cross Border Ltd 1/ Sekforde Street London EC1R 0BE United Kingdom

Laura Walker +49-(0) 30-88 92 22-61 [email protected] www.mergermarket.com 80 Strand WC2R 0RL London United Kingdom

n-tv Nachrichtenfernsehen GmbH Contact Person Phone E-mail Website Address

Bettina Klauser +49-(0) 2 21-4 56 31-3 00 [email protected] www.n-tv.de Picassoplatz 1 50679 Köln Germany

Deutsches Eigenkapitalforum 2011 Page 111

Media Partners

The NZZ is the leading quality daily newspaper in Switzerland. The NZZ reaches more executives from economic, political, cultural and social spheres than any other Swiss subscription newspaper. It is the most important source of information for executives and CEOs.

Neue Zürcher Zeitung Contact Person Phone E-mail Website Address

Phoenix CNE Contact Person Phone E-mail Website Address

Leserservice +41-(0) 44 258 18 03 [email protected] www.nzz.ch Falkenstr. 11 8021 Zürich Switzerland

Pingping Luo +49-(0) 69-35 35 78-26 [email protected] www.pcne.tv Neue Mainzer Str. 75 60311 Frankfurt Germany

RiD Real Estate Information GmbH Contact Person Matthias Freutel Phone +49-(0) 69-27 13 89-18 E-mail [email protected] Website www.reits-in-deutschland.de Address Münchener Str. 36 60329 Frankfurt am Main Germany

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Deutsches Eigenkapitalforum 2011

The NZZ organizes top-class symposia which offer companies the opportunity to represent themselves to an exclusive audience. These events are an important networking platform at the top management level with experts from the investment and entrepreneurial environment.

As a bridge connecting Europe and China, Phoenix Chinese News & Entertainment Channel (PCNE) brings to its audience the major political and business news and entertainment programs through a wide distribution network. PCNE broadcasts its programmes 24/7 across Europe via transponder Eurobird D9S. Phoenix CNE is dedicated to promote economic partnerships and cultural exchanges between China and Europe, creates waves for Chinese enterprises and provinces in their efforts to open up new trade and investment opportunities. Apart from serving the needs of the European Chinese communities, PCNE also offers a window of opportunity for investors to target the most affluent and educated European Chinese as well as for European companies to generate publicity as they charge into the China market.

REITs in Deutschland is the Real Estate Investment Trusts information portal in Germany. We create transparency, provide independent in-depth reports, and promote an effective dialogue between investors and issuers. REITs in Deutschland is an initiative of ergo Kommunikation, one of the leading communications consultancies and PR agencies in Germany with special focus on financial, corporate and political communications. A team of real estate specialists based in Frankfurt/M. and Berlin supports real estate companies in all aspects of their communications. www.ergo-komm.com

Media Partners

VDI nachrichten is the leading opinion-forming weekly magazine for engineers and technical management. It provides up-to-date, comprehensive and competent information on trends in technology, the economy and society. The newspaper book Technik & Finanzen describes and illustrates with examples how finances can be used to expand and increase efficiency in business. Panels of experts and surveys keep you informed of the capital market, start-up initiatives as well as financial and investment strategies, and analysts and market observers offer an assessment of trends. VDI nachrichten reaches around 334,000 readers every Friday (Allensbacher Communication Media Analysis 2011). It is published by VDI Verlag, 60% of which is held by VDI GmbH and 40% by the Handelsblatt GmbH group of publishers.

VDI Verlag GmbH Contact Person Phone E-mail Website Address

Iris Klose +49-(0) 2 11-61 88-0 [email protected] www.vdi-nachrichten.com VDI-Platz 1 40468 Düsseldorf Germany

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Top 50 capital seeking companies

Company

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AE Photonics GmbH

116

Henan Snow Bird

REVOTAR Biopharmaceuticals AG

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Affimed Therapeutics AG

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Enterprise Co., Ltd

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RIEMSER Arzneimittel AG

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AMEOS AG

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ibidi GmbH

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Sana Kliniken AG

157

Inventux Technologies AG

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SemiLev GmbH

158

ANM Adaptive

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Platin Delikatessmanufaktur GmbH 154

Neuromodulation GmbH

120

Jedox AG

139

Signature Diagnostics AG

159

Armatix GmbH

121

JPK Instruments AG

140

SIRION BIOTECH GmbH

160

Atlas Interactive Deutschland GmbH 122

Lophius Biosciences GmbH

141

SUNOVA AG

161

Aupeo GmbH

123

Maxidor (Pty) Ltd

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Superwise Technologies AG

162

BIOMETRY.com AG

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MCW Oil Sands Recovery, LLC

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Targos Molecular Pathology GmbH 163

Breezecom Inc.

125

Medicyte GmbH

144

Torqeedo GmbH

Concentrator Optics GmbH

126

164

Metasonic AG

145

van den Berg AG

165

CPM Compact Power Motors GmbH127

Micropelt GmbH

146

VESTOLIT GmbH & Co. KG

166

Curetis AG

128

mimoOn GmbH

147

VST Verbundschalungstechnik

Cytolon AG

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mitcaps GmbH

148

GmbH – VST Group

167

MOBILES REPUBLIC

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Windreich AG

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Bank in Gründung

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Ningbo Strong Magnets Co., Ltd.

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Zimory GmbH

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evidanza GmbH

131

Novaled AG

151

finocom AG

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Transportsysteme GmbH

152

froodies GmbH

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Omikron Data Quality GmbH

153

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Capital Seeking Companies

AE Photonics GmbH Renewable Energies

Profile

Business Field

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2008 45 6 10 2008 43 93 85 110

AE Photonics GmbH specialises in the trade of photovoltaic components along the value chain. Aside from the core business of trading, AE Photonics Group also realises solar parks and photovoltaic power plants in major plant engineering up to several megawatts. In the trade of photovoltaic components as well as in the project business, AE Photonics works with products of well-known manufacturers of solar modules, inverters and substructures.

Strategic Market Position Contact Contact person Phone E-mail Website Address

Gunnar Anger +49-(0) 3 51-31 58 07-23 [email protected] www.ae-photonics.com Loschwitzer Str. 37 01309 Dresden Germany

The markets being currently mostly relevant for AE Photonics are Germany and Italy being sales markets for wholesaling and construction. Greece and Morocco will follow.

Management Marco Lamsouguer, CEO He originates from real estate financing. From 2007 until the incorporation of AE Photonics he managed the department Alternative Energies at a privately owned company. He founded AE Photonics Group in November 2008. Gunnar Anger, CFO As a trained banker, Mr. Anger studied BA and worked as an investment banker in the fields of corporate finance, equity financing and M&A, where he was responsible for several capital market transactions for German small and medium-sized companies. He joined AE in September 2010.

Gunnar Anger, CFO

Martin Attenhauser, CSO

Martin Attenhauser, CSO Martin Attenhauser worked for 5 years as senior asset manager with Hudson Advisors Germany GmbH / Lone Star Funds. Beforehand he was a consultant for the law firm Walter & Walter in the area of Corporate Restructuring. Mr. Attenhauser studied industrial engineering and BA. In September 2010 he joined AE.

Planned Investment, Shareholders/Investors Privately owned so far Investments of around 10 m€

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Deutsches Eigenkapitalforum 2011

Capital Seeking Companies

Affimed Therapeutics AG Biotechnology

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2000 30 7.8 25 3 5

and auto-immune indications. The company is focussing on two liquid cancer indications, Non-Hodgkin- and Hodgkin’s disease addressing unmet medical needs in both indications and attractive market potentials.

Management Affimed is led by an internationally experienced management team with extensive experience in the pharmaceutical and biotech industries: Dr. Rolf H. Günther, CEO; Prof. Dr. Melvyn Little, CSO; Dr. Florian Fischer, CFO; Dr. Miroslav Ravic, CMO; Dr. Adi Hoess, CCO.

Contact Website Address

www.affimed.com Im Neuenheimer Feld 582 69120 Heidelberg Germany

Business Field Dr. Adi Hoess, CCO

Affimed is an innovation driven biotech company very strongly positioned in antibody therapeutics – the fastest growing segment of the pharmaceutical industry – and has pursued a focussed strategy of developing human antibodies as therapeutics. By utilizing its broad portfolio of proprietary, in-house technology platforms together with crucial enabling freedom-to-operate licenses, the company has been able to establish an early stage and clinical product pipeline of promising novel product candidates focussed on oncology. Affimed has its lead product in advanced Phase I clinical stage with a CD30xCD16a Tandab – Antibody targeting Hodgkin’s disease.

Dr. Florian Fischer, CFO

Planned Investment, Shareholders/Investors We are backed by a peer group of investors including Orbimed, Aeris, LSP, BioMed Invest and Novo Nordisk A/S. The company is currently raising up to 25 m€ in a Series D financing, of which 13 are currently committed.

Strategic Market Position Affimed has developed a novel bi-specific antibody technology. The antibodies are suited to be applied in oncological

Deutsches Eigenkapitalforum 2011 Page 117

Capital Seeking Companies

AMEOS AG Healthcare

Profile

Business Field

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2002 7000 100 200 2008 336 356 394 410

Contact Contact person Phone E-mail Website Address

Dr. Volker Wendel +41-(0) 8 78 35-33 66 [email protected] www.ameos.eu Bahnhofplatz 14 8021 Zürich Switzerland

The AMEOS business model includes the acquisition, the reorganisation as well as the sustainable management of hospitals and long-term care facilities. AMEOS operates in four business lines: AMEOS acute general hospitals, AMEOS acute psychiatric hospitals, AMEOS long-term elderly care and AMEOS long-term mental care. AMEOS provides healthcare services for the general public and focusses on major regional medical centres offering various specialties. AMEOS is a major private operator of psychiatric facilities in Europe with broad expertise in the field of operating forensic hospitals. The elderly and mental care facilities of AMEOS complement the integrated healthcare approach of an AMEOS Region.

Strategic Market Position AMEOS is among Europe’s leading health service providers, focussing mainly on German-speaking regions. AMEOS hospitals and long-term care facilities offer highquality and cost-effective medical and nursing services, combining inpatient and outpatient services in regional networks – the AMEOS regions. With this integrative business model AMEOS stands out from its competitors. Following a growth strategy, AMEOS aims to establish new healthcare regions and expand existing ones. AMEOS has become a highly distinctive brand in the healthcare market.

Management The AMEOS group is lead by a management team of five: Dr. Axel Paeger (CEO), Dr. Volker Wendel (CFO), Michael Dieckmann (COO), Dr. Stephan Zahn (CTO) und Dr. Marina Martini (CDO).

Planned Investment, Shareholders/Investors From left to right: Dr. Stephan Zahn, Dr. Marina Martini, Dr. Axel Paeger, Michael Dieckmann, Dr. Volker Wendel

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Institutional investors with a long-term investment horizon such as pension funds and life insurances make the majority of the shareholders; furthermore the members of the management team are personally invested. Because AMEOS follows a growth strategy, future growth will require both private and debt capital.

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Capital Seeking Companies

ANM Adaptive Neuromodulation GmbH Medical Technology

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2005 21 6.0 3.0 0.001 2.3 1.2 4.8

Contact Contact person Phone E-mail Website Address

Dr. Jörg Stein +49-(0) 2 21-4 54-63 01 [email protected] www.anm-medical.com Im Mediapark 6d 50670 Köln Germany

huge market. The neurostimulator is approved as a medical device for commercialisation in Europe and has been marketed in Germany since 2010 and in four other European countries as from 2011. Filing for U.S. FDA-approval was done. 10-20% of Parkinson’s patients suffer from the late-dopa syndrome: drugs no longer help. This is the target group for treatment with deep brain stimulation. ANM has developed an implant that is due to be transferred in a first human application in 2012 to confirm long-term therapy success with minimal side effects. The latter already was demonstrated in animal experiments and in acute human applications. ANM has the potential to come up with a breakthrough innovation in a fast-growing billion-dollar market.

Management ANM is led by an experienced management team and advisory team.

Business Field ANM is a start-up, spun off from Forschungszentrum Jülich. Its scientifically developed technology platform has potential to generate benefits in various medical fields (such as Tinnitus, Parkinson’s, Chronic Pain, ADHD, or Movement Disorders after Stroke). Pioneering work in neuromodulation devices has been developed to reduce the disease symptoms, initially focussing on two projects, an auditory tinnitus neurostimulator and a deep brain stimulation implant for Parkinson’s treatment.

Strategic Market Position The basic technology (coordinated reset, CR) is widely protected by world-wide patents. ANM has shown that CR can reduce Tinnitus by acoustic stimulation (with about 70% treatment success). Since there is no treatment standard and no established treatment method, CR addresses a potentially

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Dr. Jörg Stein, CEO

Jukka Schnitzler, CFO

Planned Investment, Shareholders/Investors ANM is a technology leader in the field of neural stimulation. The successful development and market introduction of the advanced CR technology allows entry into billion-markets with products which might be “game-changing”. With the universal approach of having a platform technology further treatments can be developed, e.g. in Chronic Pain, Migraine, Movement Disorders after Stroke, Dystonia or ADHD. In order to complete the developments and to conduct the necessary clinical studies in the next two years, about 3 m€ are required. According to conservative planning, the break-even will be achieved by then. ANM is currently financed via 25 private investors and the KfW.

Capital Seeking Companies

Armatix GmbH Industrial Products & Services

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

Business Field 2004 30 5.0 0.190 0.260 1.400 7.900

Locking Systems for Weapons

Strategic Market Position Technology leader in mechatronic locking systems for weapons

Management Bernd Dietel, Ernst Mauch, Günter Hefner, Franz Hermann

Contact Contact person Phone E-mail Website Address

Günter Hefner +49-(0) 89-4 27 29 79-0 [email protected] www.armatix.de Feringastr. 4 85774 Unterföhring Germany Bernd Dietel

Ernst Mauch

Günter Hefner

Franz Hermann

Planned Investment, Shareholders/Investors Approx. 5 m€ Bernd Dietel, Ernst Mauch, Mountain Partners, KfW

Deutsches Eigenkapitalforum 2011 Page 121

Capital Seeking Companies

Atlas Interactive Deutschland GmbH Telecommunication Services

Profile

Management

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

1995 30 0.5 5.0 2007 15 21 30 45

The management consists of 5 persons: Marco Priewe, CEO: More than 15 years of management experience in telecommunications. Has been honorary member of the Board of Directors of the DVTM, the German Association for Telecommunication and Media, for more than 10 years. Andreas Syska-Funk, CIO, Ingo Vahl, CFO, Andreas Pritzlaff, COO, and Lars Ketelsen, CMO.

Planned Investment, Shareholders/Investors Contact Contact person Phone E-mail Website Address

Marco Priewe +49-(0) 40-41 33 00-1 15 [email protected] www.atlasinteractive.de Christoph-Probst-Weg 3 20251 Hamburg Germany

Business Field AI is the provider of kanzaloo™, a unique micro payment solution, allowing merchants to monetize on digital goods and virtual currency. Kanzaloo™ allows payment transactions in 85 countries without unveiling any personal data.

Since 2001, ATLAS Interactive is owned to 100% by ATLAS Interactive Holdings Ltd, a 90% daughter company of the ATLAS Group of Companies. This group is owned to 90% by Mr. Jean Michel Alfieri and Mr. Philippe Bednarek. The mission of AI is to become the leading global provider of micro payment solutions for the distribution of digital goods. Raising external funds of approx. 5.0 m€ shall help AI to realize the existing growth strategy. It is the declared goal to reach an annual turnover of above 400 m€ by 2015. The funds shall mainly be used for the following purposes: Foundation of international subsidiaries, increase of human development resources, external IT developments, e-wallet functionality and acquisition of small e-money license, expansion of sales and marketing activities, development of additional B2C and affiliation strategy, product improvements, etc.

Strategic Market Position AI is leading provider of micro payment solutions in Europe, serving companies such as Bigpoint, Gameforge, Frogster, Travian Games, Aeria Games, Innogames, NDR Media, Deutsche Telekom, Sport 1, Playa Games etc. AI has 28 employees located in Hamburg (HQ) and Cologne. In March 2010, AI opened an office in San Francisco, another office is scheduled to open in Indonesia end of 2011. The company is profitable since 2007 and reaches annual growth rates of 30–50%.

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Marco Priewe, CEO

Capital Seeking Companies

Aupeo GmbH Communications Technology

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

Management 2008 30 0.9 5-6 2012 0.1 0.250 0.500 7.0

Holger G. Weiss, CEO Armin G. Schmidt, COO Steffen Holly, CTO Daniel Cox, Head of Sales Daniel Mieves, Head of Marketing Talip Yenal, Head of Finance

Contact Contact person Phone E-mail Website Address

Holger G. Weiss +49-(0) 30-4 00 05 68-0 [email protected] www.aupeo.com Alexanderstr. 7 10178 Berlin Germany Holger G. Weiss, CEO

Armin G. Schmidt, COO

Business Field AUPEO is specialized in personalized music stream in the web, on apps and on internet capable devices. The global services allow users to create their own Music DNA and to discover music they really like

Planned Investment, Shareholders/Investors

Strategic Market Position

- JCMB, Hamburg - Ventegis Capital, Berlin - IBB Beteiligungsgesellschaft, Berlin - Kfw, Bonn - Innoven Partners, Paris

AUPEO is the leading music service on internet capable devices. On more than 25 million devices like netbooks, laptops, TVs, smartphones, HIFI etc., the service can be accessed all over the world. AUPEO is also leading partner to the automotive industry. In 2010 they launched for MINI the first streaming service in a serial car ever.

AUPEO is venture capital backed. So far the following funds have invested:

AUPEO is seeking to close a Series C round by end of 2011 over 6 m€.

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Capital Seeking Companies

BIOMETRY.com AG IT-Services

Business Field Profile Biometric Authentication Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2006 4+5 2.5 1.5 2013 0.1 1++

Contact Contact person Phone E-mail Website Address

Werner Blessing +41-(0) 79-4 34 45 35 [email protected] www.biometry.com Chilcherlistr. 1 6055 Alpnach - Luzern Switzerland

More security is needed, because of increased cybercrime. PINs and tokens are insecure. The biometric passports bring a strong growth into this market segment. BIOMETRY.com AG invented a solution called ComBiom (Communication Biometrics), which uses four biometrics (biometric face, voice, word recognition and recognition of lip movement) simultaneously. Four randomly selected numerals appear successively on the display and the user speaks these numerals. Internet and mobile applications are uniquely secured against replay and spoofing attacks. An international research group shows the importance; BIOMETRY is a member of the www.tabularasa-euproject.org.

Strategic Market Position MOBILE AUTHENTICATION: a pilot will start in Q1-2012 in partnership with www.access-company.com (ACCESS has 1 billion customers worldwide). PHYSICAL ACCESS: in cooperation with www.bioguard.net applicable biometric door openers with the trademark BIOMETRY will be introduced to the market. LOGICAL ACCESS: Werner Blessing presents possibilities of Logical Access to the “Deutsche Bank” in December `11. Further contacts are being made with the Swiss banks. AFFILIATES: in Estonia, Shanghai. To come: Munich, Tel Aviv, Cape Town, California, etc.

Management Werner Blessing, CEO, Herbert Lüthold, CTO, Martin Aschwanden, CFO

Planned Investment, Shareholders/Investors

Werner Blessing, CEO

Money for development of the authentication products is needed. Further for sales and marketing.

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Capital Seeking Companies

Breezecom Inc. Telecommunication Services

Strategic Market Position Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2007 90 1.0 15.0 2007 20.75 37.01 35.0 50.0

Breezecom’s strategic geographic locations in the Middle East & Asia Pacific has enabled strong strategic deals with major telecom companies in the region. It controls about 20% of the voice traffic into Pakistan and significant traffic to Bangladesh & India. Focus has always been on countries where the outward immigration pattern is strong, and hence core destinations like Pakistan, India, Bangladesh, Srilanka have been a success story for Breezecom. Having established itself in Asia, the group now aims to explore countries in Latin America, Africa & Europe.

Management Contact Website Address

www.breezecom.biz Level 1, Lot 7, Block F, Saguking Commercial Building, Jalan Patau-Patau 87000 Labuan FT Malaysia

Business Field Breezecom is one of the leading providers of international wholesale voice aggregation services in the Middle East and the Indian Sub-Continent. Using its carrier-grade telecom infrastructure, it provides voice calls routes to telecom companies around the globe that enable them to offer international calling services to their subscribers, e.g. Telecom Italia would use Breezecom to carry their subscribers’ international voice traffic around the world. Breezecom enjoys strategic interconnects with over 500 telecom providers, deals in over 25 major destinations, and processes over two billion minutes of voice traffic each year. It uses intelligent technologies in order to efficiently manage large volumes with minimum human interaction. Building its own organic voice traffic has also been managed successfully by the group.

Breezecom was founded by Silicon Valley veterans, Afaque Ahmed & Yasin Altaf, who have taken this venture from a two man company to over 35 m€ revenues Afaque Riaz Ahmed Yasin Altaf in 5 years. Mr. Riaz has extensive experience in technical marketing and sales roles in networking technologies, while Mr. Altaf enjoys valuable experience in defining and successfully launching bleeding edge telecom products at startup companies. Both of them are serial technology entrepreneurs and have other successful ventures under their belts. The dynamic duo is popular for its vision and attention to detail in the technology arena. Breezecom’s finance is currently being headed by Mr. Faisal Muqeet, ACMA.

Planned Investment, Shareholders/Investors The company is privately funded by the two founders. They are the only shareholders sharing the equity 50/50. The group now plans to expand its services in different countries in Latin America, Africa & Europe. The capital raised will be used primarily for the development of telecom infrastructure, establishment of manned offices, targeted acquisitions, hiring seasoned management staff, and working capital to secure strategic deals.

Deutsches Eigenkapitalforum 2011 Page 125

Capital Seeking Companies

Concentrator Optics GmbH Renewable Energies

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2008 12 0.58 3.5 bis 5.0 2013 0.3 0.4 0.7 3.5

Contact Contact person Phone E-mail Website Address

Dr. Ralf Leutz +49-(0) 64 21-16 89 40-0 [email protected] www.concentratoroptics.com Lahnstr. 16 35091 Cölbe Germany

Business Field

customary in the market (PMMA and silicone-on-glass, SOG), and the only one to offering both processes as turnkey supplier to her customers.

Management Concentrator Optics was founded in 2008 by Dr. Ralf Leutz and Rainer Adomeit. Ralf Leutz has been working on Fresnel lenses and solar applications for over 15 years. He accompanied several solar projects from research to production. Dr. Leutz is the author of the book “Nonimaging Fresnel lenses – Design and performance of solar concentrators” (Springer 2001), and a respected expert in the developing market of CPV. Rainer Adomeit complements the technology as experienced Shareholder and Managing Director of several companies. His responsibilities at Concentrator Optics are marketing, sales and finances.

Planned Investment, Shareholders/Investors The Financing Round C is designed to ensure and press ahead the growth of Concentrator Optics. Investments will flow in equal parts into an automated production line and expanding personnel capacity around the world. Principal shareholders are the founders Dr. Ralf Leutz and Rainer Adomeit, as well as the Capricorn Cleantech Fund, Leuven, Belgium.

Concentrator Optics is the one-stop turn-key provider of technologies empowering Fresnel lens production. We offer optical design, prototyping and manufacturing of Fresnel lenses for concentrating photovoltaics (CPV) as well as complete turn-key production lines.

Strategic Market Position The market volume for solar optics in CPV is estimated to exceed 500 m€ in 2015. These optics will be nonimaging Fresnel lenses in large-area Fresnel lens parquets of highest transmittance. Traditional optics makers do not produce such lens parquets as they have specialized on other materials, processes and small size units. There are 5 companies worldwide producing Fresnel lenses for CPV. Concentrator Optics is the only company supporting both processes

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Dr. Ralf Leutz

Rainer Adomeit

Capital Seeking Companies

CPM Compact Power Motors GmbH Energy Efficiency & Reduction of Emission

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2008 15 n/a n/a n/a n/a 0.65 1.0 3.5

• Far East markets with already large sales volumes of gasoline powered and electric two-wheelers such as China and India With a strong network of experienced professionals, development associates and manufacturing partners, as well as leading investor support from the “Cleantech” sector, CPM is a flexible, reliable and innovative partner for electrical drive solutions.

Contact Contact person Phone E-mail Website Address

MBA Christian Kasten +89-(0) 2 87 24 68-52 [email protected] www.cpmotors.eu Feringastr. 11 85774 Unterföhring Germany Nico Windecker

Christian Philip Kasten

Business Field

Management

CPM develops and manufactures the world’s most efficient and compact drive solutions – all “Made in Germany”. Our compact, high-performance drive units couple a brushless synchronous motor with a fully integrated control unit, provide powers ranging from 500 W to 100 kW and are particularly well suited for all types of vehicle and battery-driven applications as well as for all energy recovery tasks.

Dr. Ing. Thomas Leiber, Aerospace & Electrical Engineer, Founder and Chairman Nico Windecker, Attorney, Founder & CEO Dipl.-Ing. Thomas Simonis, Electrical Engineer, Head of R&D Christian Philip Kasten, MBA, CFO

Strategic Market Position

Lead Investor Munich Venture Partners with Co-Investor KfW, Environmental Technologies Fund (UK), IP GATE AG Zurich, Nico Windecker, Founder

CPM offers fully integrated drive train systems, particularly in the fields of electric two-wheelers and auxiliary power units such as AC compressors and pumps. CPM sales activities are focussed on two main geographical areas: • European countries with established, high volume two wheeler market and relatively high price levels

Planned Investment, Shareholders/Investors

Deutsches Eigenkapitalforum 2011 Page 127

Capital Seeking Companies

Curetis AG Medical Technology

Business Field Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2007 30 6.7 10 2

Molecular Diagnostics / Med Tech Curetis develops the Unyvero platform and solution to diagnose acute infectious diseases by identifying pathogens as well as antibiotic resistances. The first product application is for the diagnosis of 17 pathogens and 22 antibiotic resistance markers for pneumonia in hospitalized patients.

Strategic Market Position Clinical Trial stage company with a proprietary platform with unmatched multiplexing capabilities.

Contact Contact person Phone E-mail Website Address

Dr. Oliver Schacht +49-(0) 70 31-4 91 95-12 [email protected] www.curetis.com Max-Eyth-Str 42 71088 Holzgerlingen Germany

Curetis is building a marketing and sales organization for its home markets in Germany, Austria and Switzerland (DACH) and will rely on distributors and strategic partners to commercialize the Unyvero solution globally.

Management Oliver Schacht, CEO Andreas Boos, CTO Johannes Bacher, COO Anne Burger, CFO

Planned Investment, Shareholders/Investors Raised over 27 m€ of capital from top European VC investors (aeris Capital, LSP Life Science Partners, BioMed Partners, CD-Venture, KfW). Several private angel investors. Series A financing completed

Oliver Schacht, CEO

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Deutsches Eigenkapitalforum 2011

Curetis targets an additional financing round in late 2011 to fully fund our clinical trials in EU and USA towards an FDA approval.

Capital Seeking Companies

Cytolon AG Biotechnology

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2008 15 2.8 5.0 2013 1.5 (e)

Cytolon is now working on the next generation of platform technology for “distributed inventories” as an approach to include and match additional stem cell products via donor registries or inventories of the pharmaceutical industry. In a strategic deployment, the company sees an opportunity for a second innovative matching product. Cytolon will adapt its proprietary IT-platform to enable more efficient and effective partnering and acquisitions between players in drug development. Cytolon’s objective is to be the world’s first trusted source for partnering opportunities on the web.

Contact Contact person Phone E-mail Website Address

Thomas Klein +49-(0) 30-2 63 92 88-0 [email protected] www.cytolon.com Am Karlsbad 15 10785 Berlin Germany Thomas Klein, CEO

Business Field Management Cytolon AG is a private company based in Berlin, Germany, that develops and operates proprietary, global, internetbased brokering platforms to address challenges of personalized medicine and innovative drug development. The company’s first product is the patent-pending CordMatch® platform which was developed to enable the matching of available cord blood units to Leukaemia patients requiring a transplant. This market is the first existing market of personalized medicine.

Thomas Klein, Founder & CEO of Cytolon AG. He focusses on the company’s strategy, business development and marketing of the matching platform CordMatch®. With more than 20 years of professional experience as an entrepreneur, he has a proven track record in biotechnology and IT. Dr. Jeanette Libera-Körner, Biophysics, MBA – Vice President Research & Development Isabel Feys, MBA – Vice President Partnering Ralf Schliehe-Diecks, M. Sc. – Vice President IT Systems

Strategic Market Position Planned Investment, Shareholders/Investors With CordMatch® Cytolon provides solutions and services for today and the future, so world-wide transplant centers (TC) and physicians can talk actively and effectively to world-wide cord blood banks (CBB), registries, industry partners and service providers.

5 m€ for strategical imperative investment, Dr. Jürgen Schumacher, Co-Founder of QIAGEN AG, further investors are family funds in Switzerland and Germany as well as KfW Bankengruppe.

Deutsches Eigenkapitalforum 2011 Page 129

Capital Seeking Companies

Deutsche Revo AG Bank in Gründung Other Banks

Profile

Strategic Market Position

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

1998 6 1 15 1998 153 147 2 175

Contact Contact person Phone E-mail Website Address

Dr. Uwe-Peter Hastedt +49-(0) 61 73-60 77 681 [email protected] www.deutsche-revo.de Hauptstr. 332 65760 Eschborn Germany

Working capital management is a market of the future having enormous potential in terms of business and yields. Target customers will be the premier small to medium sized companies with a turnover ranging from 10 m€ to 1 bn€. Deutsche RevoBank is aiming for a business volume of 1 m€ in the medium term. As a result of the emphasis placed by Deutsche RevoBank on working capital it has a unique selling proposal within the banking sector. The focus will be on the areas of inventories and commodities, where a substantial competitive advantage exists. Deutsche RevoBank will revolutionize working capital management because it optimizes and finances it at the same time.

Management Dr. Uwe-Peter Hastedt, initiator and CEO of the Deutsche Revo AG, jointly founded the MHB-Group and as the managing business partner built it up to a successful specialist provider for working capital for small to medium sized companies in Germany.

Business Field Deutsche Revo AG is taking a completely new approach to financing working capital (inventories, goods, accounts receivable and tangible fixed assets). Innovative solutions for working capital will be combined with the financial power of a bank. Deutsche Revo AG has applied for a full bank license and in the future will operate as the Deutsche RevoBank. The start of business operations is planned for 2012. In the role of supplier and customer, Deutsche RevoBank is a part of the supply chain. The company brings classic trading and service functions and combines these with typical banking activities such as financing services. The advantage for the customer is reduced capital commitment, increased liquidity, as well as improvement of ratings. Deutsche RevoBank is a spin-off of the MHB-Group which since 1998 has successfully provided innovative working capital solutions for businesses with annual volumes of up to 300 m€.

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Dr. Uwe-Peter Hastedt, CEO

Planned Investment, Shareholders/Investors Deutsche Revo AG has a share capital of 1 m€, totally owned by the MHB-Group. A current increase in equity of 15 m€ for the formation of the bank (14 million NPV shares at 1.10€) is required. Anticipated yield 8-14% p.a. additionally increased by capital appreciation of the shares. Preferably Deutsche Revo AG is looking for investors with 2 m€ or more.

Capital Seeking Companies

evidanza GmbH Software

Profile

Strategic Market Position

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2004 45 1.672 5 2012 3.314* 3.105* 3.8 7.2

Management Thomas Gross, CEO and Founder, responsible for development, marketing and sales. Günter Meier, CEO and Founder, responsible for finance and administration.

Contact Contact person Phone E-mail Website Address

evidanza is the leading platform manufacturer for companies that rely on Microsoft technologies in the client and/or infrastructure area. evidanza’s target market is the (upper) middle class, the Microsoft Dynamics market, defined branch markets and for the future the “Small and Small Middle” market by using Cloud and App solutions.

Thomas Groß and Günter Meier +49-(0) 9 41-78 49 44-31 [email protected] www.evidanza.de Haupstr. 27 90562 Heroldsberg Germany

* 2009 revenues include consulting business revenues, 2010 from July onwards revenues are without revenues of consulting business (after sale of consulting business)

Business Field evidanza is a software developer for Business Intelligence, Corporate Performance Management, GRC (Governance, Risk & Compliance) and Business Process Management solutions. The software solutions are based on a proprietary software framework (platform). This framework supports SaaS/AaaS, as well as cloud-based software architectures and innovative licensing models, such as App Solutions. evidanza’s software solutions do not only cover all the functional requirements of controlling, but even more optimize all business processes regarding information and communication within companies. Thus the classic business intelligence approach will extended by two key areas: enterprise management (controlling) and business process management.

Thomas Groß, CEO

Günter Meier, CEO

Planned Investment, Shareholders/Investors The company faces continuing growth and will require capital for internationalization and for the marketing of SaaS and cloud-app solutions. In addition to the two founders, investors are the S-Refit, the KfW and the BayBG.

Deutsches Eigenkapitalforum 2011 Page 131

Capital Seeking Companies

finocom AG Telecommunication Services

Profile

Strategic Market Position

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2007 14 0.610 2 -

Contact Contact person Phone E-mail Website Address

Peter Nowack +49-(0) 2 21-9 99 98 56-21 [email protected] www.placetel.de Merowinger Platz 1 40225 Düsseldorf Germany

Due to increasing bandwidth and modified needs in communication behaviour, business customers are now deciding more and more on hosted phone systems. In the private sector, VOIP-technology is already gaining in popularity. Also in business fields there are great potentials for cloud telephony in the core target group – enterprises with 5-100 employees (around 2.5 million). In this particular market segment, Placetel.de is positioned as the cost leader – above competitors offering similar services – due to its efficiently automated processes in areas such as billing, support and setup, as well as a highly scalable telephony platform, an online sale and distribution approach and fully owned technology: Placetel.de works with marginal costs which results in savings for its users. Placetel.de offers hosted phone systems in two versions. Placetel FREE offers complimentary range standard services. Placetel PROFI provides premium features and support with a wider scope of services for a limited fee. Placetel.de is proud to be the winner of the “Mittelstandspreis 2011”, underlining its unique position in the market.

Management Business Field Finocom AG is one of the leading cloud specialists in Germany offering a hosted communication system for small and medium enterprises through its product Placetel.de. This business voice solution is based on a self-developed and highly scalable telephony platform. Business customers are able to obtain their complete phone system from the Placetel cloud offering, without the costly investments of a traditional hardware telephone system. In this way, clients benefit from a “pay per use” business model, which enables an effective resource management. Business customers can upgrade or downsize their hosted phone system according to their individual needs and only pay for the used telephony services. In addition to the dramatic reduction in costs, customers also profit from a wide range of unified communication and collaboration services which work more efficiently in the daily business environment. More than 5,000 SMB customers use Placetel today with a staggering number of new customers registering every day.

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The managing board of the finocom AG consists of: Peter Nowack, CEO), Kamran Hedjrat, CTO, Italo Adami, COO, and Markus Haas, CFO.

Peter Nowack, CEO

Markus Haas CFO

Planned Investment, Shareholders/Investors The finocom AG is funded by KfW, Platinum Ventures, Sirius Ventures Partners and Vilitas. To strengthen its market leadership and international reach, finocom AG regularly reviews potential strategic partners and investors.

Capital Seeking Companies

friedola TECH GmbH Energy Efficiency & Reduction of Emission

Profile

Business Field

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2004 300 16 10 2011 33 45 55 65

Automotive and packaging Strategic market position Leading position in the field of lightweight boards

Strategic Market Position Leading position in the field of lightweight boards

Contact Contact person Phone E-mail Website Address

Christoph-Helmut Holzapfel +49-(0) 03 60 82-4 72 25 [email protected] www.friedola-tech.de Ershäuser Str. 4 37308 Geismar Germany

Christoph Holzapfel, CEO

Werner Eisenhardt, CFO

Management Christoph-Helmut Holzapfel, CEO Werner Eisenhardt, CFO Mario May

Planned Investment, Shareholders/Investors Management 10% Wheb F Tech 90% For growth in the markets of North America and Asia. There is a need for funding of 20 m€.

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Capital Seeking Companies

froodies GmbH Food

Profile

Business Field

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2009 6 VZ, 45 TZ 0.1 1.5 0.034 0.3 0.7 3.1

Contact Contact person Phone E-mail Website Address

Ingo Bohg +49-(0) 2 11-26 00 85-62 [email protected] www.froodies.de Worringer Platz 14 40210 Düsseldorf Germany

froodies is an online grocery shop with a personal same day delivery service in selected major german cities and a national and international shipping service.

Strategic Market Position froodies started its online grocery business in March 2009 as one of the early movers in the German market. The online grocery market in Germany has recently been in vogue by new start-up companies and big grocery retailers as REWE und Metro. As one of the few established companies in the market, froodies has established an outstanding webshop (www.froodies.de) with efficient logistics, a huge number of regular customers and a quick growth both in new customers and revenues. froodies does not build up and control own warehouses, but instead co-operates mit local retailers from EDEKA where out-of-store picking and personal home delivery is organized and executed by froodies employees. This business modell and concept is currently unique in the German market.

Management Ingo Bohg, responsible for marketing und online products Lutz Preußners, responsible for assortement, expansion and operations

Planned Investment, Shareholders/Investors To realize expansion into all major German cities, the company seeks for a series A financing round with a volumne of 1.5-2.0 m€ in March/April 2012. Lead investors: Sirius Venture Partners, High-Tech Gründerfonds Ingo Bohg

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Capital Seeking Companies

healthy planet Food

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

Business Field 2012 10 0.25 2.75 2012 0.3 0.9

Organic ice cream & sorbets

Strategic Market Position Fully sustainable product and service portfolio, including city stores and solar powered production facilities. Products are 100% organic, fair trade, gluten-free and highly desirable.

Management Contact Contact person Phone E-mail Website Address

Approved management. 20 years experience in company development, leadership and product design. Guido Jörg +49-(0) 6 11-7 24 93 76 [email protected] healthyplanet.de Wandersmannstr. 68 65205 Wiesbaden Germany

Planned Investment, Shareholders/Investors 3 m€ for production facility, machinery and PV

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Capital Seeking Companies

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Capital Seeking Companies

ibidi GmbH Biotechnology

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

Strategic Market Position 2001 27 1.099 4,000 2008 2.216 2.648 2.800 3.100

Management Managing Directors: Dr. Valentin Kahl, Production, Finances, Organisation Dr. Roman Zantl, Sales, R&D

Contact Contact person Phone E-mail Website Address

There are three relevant markets for ibidi: Segment 1: Scientists in the academic field. (Total: 8 bn€ in 2010 / 25 m€ relevant for ibidi). Segment 2: Scientists in industries (Total 6 bn€ in 2015 / 200 m€ relevant for ibidi) Segment 3: cell-based diagnostics (9 bn€ / 2011)

Dr. Valentin Kahl +49-(0) 89-5 20 46 17-14 [email protected] www.ibidi.de Am Klopferspitz 19 82152 Martinsried Germany

Business Field ibidi is a leading supplier for functional cell-based assays and advanced products for cellular microscopy. ibidi is located in Martinsried, Germany, close to Munich. The US headquarters, ibidi LLC, is located in Verona, WI, near Madison.

Dr. Valentin Kahl

Dr. Roman Zantl

Planned Investment, Shareholders/Investors Our mission is to enable our customers to achieve outstanding success and breakthroughs in life sciences, pharma, biotechnology and medical diagnostics. We thereby are helping to make improvements in life possible.

Privately owned company. Founders are still holding 65%.

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Capital Seeking Companies

Inventux Technologies AG Renewable Energies

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2007 270 4.0 30-40 2010 22.5 61.6 >50 >60

range has been continuously expanded to include system components and photovoltaic project planning services. The Inventux Solutions GmbH has already completed turnkey photovoltaic plants with a cumulated volume of over 5 MWp. In 2010, Inventux has marketed 40 MWp and achieved an annual turnover of 61.6 m€ and positive EBITDA and EAT. Inventux has developed a broad range of proprietary technology, know-how and IP. It has developed its own back-end production line and operates independently from turn-key equipment providers. Full capacity utilization and constant improvement of production processes have led to competitive production costs with the potential to further reduce costs.

Contact Management Contact person Phone E-mail Website Address

Oliver Rothe +49-(0) 30-62 64 06-0 [email protected] www.inventux.com Wolfener Str. 23 12681 Berlin Germany

Business Field Inventux Technologies AG is a Germany-based developer, manufacturer and distributor of silicon-based micromorph thin-film solar modules focussed on the residential and commercial scale rooftop market. Inventux was founded by the current management team in 2007 and is headquartered in Germany which is also home to the Company’s main manufacturing facility. Inventux has built a European distribution network with local presence in the core markets of Germany, Italy, France, Great Britain, Spain and South Europe. In 2010 Inventux has built up its own project business company offering turn-key photovoltaic plants.

Strategic Market Position Inventux markets its products directly to installation companies and developers and focusses in particular on the residential and commercial rooftop market. Inventux’ product

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Inventux relies on a highly experienced management team with a long-term track record in solar and a proven ability to develop within 18 months a start-up idea into a Oliver Rothe, CFO Roland Sillmann, CTO successful revenue generating company with 270 employees. Inventux has fully implemented a Management Information System and an SAP ERP-System and has four testified annual financial statements. In 2009, Inventux received ISO 9001 certification. Prerequisites for growth have been put in place.

Planned Investment, Shareholders/Investors Inventux has a concentrated shareholder structure. Shareholders comprise the executive board the management team, Capital Stage AG and Conetwork Erneuerbare Energien Holding GmbH. Inventux plans to further expand production with the addition of another 120 MW solar module line to increase overall capacity to 150 MW. Total invest volume is about 130 m€. This expansion step will reduce production costs of the solar modules to below 0,5 €/Wp further strengthening Inventux` competitiveness.

Capital Seeking Companies

Jedox AG IT-Services

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2002 70 1,5 k.A. -

In the market segment of database and planning systems, Jedox is (according to the actual BARC BI Survey) the most innovative vendor with the lowest total costs, the highest business achievements rate, the fastest realtime analysis and the best support quality. Currently more than 70 employees are working for Jedox. The headquarters are located in Freiburg, subsidiaries exist in Frankfurt, Hamburg and Paris. Furthermore over 50 partner companies are selling the Jedox products in Europe, the APAC area and in North and South America.

Contact Contact person Phone E-mail Website Address

Jochen Lachnit +49-(0) 7 61-1 51 47-2 42 [email protected] www.jedox.com Bismarckallee 7a 79098 Freiburg Germany

Business Field Jedox is a worldwide leading vendor of in-memory-based Business Intelligence Systems. Jedox is the pioneer in using parallel processors (GPUs) for in-memory OLAPservers and with that provides an advantage in speed that is up to 100 times higher than comparable systems offered by IBM, SAP or Microsoft.

Strategic Market Position The software is available as an open source as well as a premium version and is used by more than 10,000 companies worlwide. The increase in sales of the last years has always been in the range of 50% (exception 2009: 15%). In the first half of 2011 a growth of more than 70% could be realized.

Kristian Raue, CEO

Jochen Lachnit, Vice President Finance

Management Kristian Raue, CEO and Founder Matthias Krämer, CTO Bernd Eisenblätter, COO (Sales & Marketing) More information online: www.jedox.com/en/about-jedox/management.html

Planned Investment, Shareholders/Investors No acute funding needs, possible funding need in a range of 5 m€ to accelerate international growth.

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Capital Seeking Companies

JPK Instruments AG Nanotechnologie

Profile

Business Field

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

1999 70 2 2004 8 10 12 -

Established in 1999, JPK Instruments AG is a leading manufacturer of nano-analytical instruments on a global scale. These instruments enable access to previously unavailable levels of nanotechnology. The product portfolio includes systems for a wide range of applications in the areas of physics, chemistry and biology. JPK products are especially applied in the research of surfaces, materialproperties and also nano-optics.

Strategic Market Position Contact Contact person Phone E-mail Website Address

Frank Pelzer +49-(0) 30-5 33 11 20 72 [email protected] www.jpk.com Bouchéstr. 12 12435 Berlin Germany

Several times in the past years, Deloitte has named JPK as the fastest-growing company in the sector of nanotechnology in Germany. The company commands a market share of more than 50 percent in Germany. JPK instruments are utilised in the most prestigious research institutes from all over the world and will also be used by industrial companies in the future. The headquarters of JPK Instruments AG are located in Berlin, with branches in Dresden, Cambridge (UK), Paris, Tokyo and Singapore. Furthermore the company maintains a global distribution network.

Management Management consists of the founding team and has many years of experience and a high level of know-how in the area of technology. Frank Pelzer, CEO René Grünberg, CFO Torsten Jähnke, CTO Jörn Kamps, COO

Planned Investment, Shareholders/Investors Main shareholders/funding requirements. Management is the majority shareholder. From left to right.: Torsten Jähnke (CTO), Frank Pelzer (CEO), Jörn Kamps (COO), René Grünberg (CFO)

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Capital Seeking Companies

Lophius Biosciences GmbH Biotechnology

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

Management 2002 19 0.8 1.5 0.1 0.03 0.1 1.0

Contact Contact person Phone E-mail Website Address

Dr. Michael Lutz +49-(0) 9 41-6 30 91 97-2 [email protected] www.lophius.de Josef-Engert-Str. 13 93053 Regensburg Germany

Lophius Biosciences has a very experienced management team with proven expertise in the biotech and diagnostic space. Dr. Michael Lutz as CEO has a well documented track record with respect to build-up of small to medium sized biotech companies. Additional management members include: Dr. Ludwig Deml, CSO Sabine Wahlländer, Head Sales & Marketing Dr. Marcus Hämmerle, Head Technical Operations Dr. Karl Kleine, Head Quality Management Dr. Nadja Prang, Head Business Development Dr. Kornelia Schlombs, Project leader Molecular Biology Dr. Sascha Barabas, Project leader Cell Biology/Immunology

Business Field Lophius Biosciences develops and markets innovative T-cell-based diagnostic tests for diagnosis and therapy control in the areas of transplantation, infectious and autoimmune diseases. The tests are based on two proprietary technology platforms.

Dr. Michael Lutz, CEO

Strategic Market Position

Planned Investment, Shareholders/Investors

Lophius Biosciences intention is to become one of the leading T-cell-based diagnostic products based on its proprietary technology platforms with a particular focus on Europe.

Currently Lophius is strongly supported by local investors such as S-Refit (Lead Investor), High-tech Gründerfonds and Bayernkapital. The company has a financing need of about 1.5 m€ until break-even mid 2013.

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Capital Seeking Companies

Maxidor (Pty) Ltd Manufacturing

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

1985 300 2.5 30 2002 12 12.1 12.2 12.8

sales engineer will assess the clients need and we will manufacture the custom made products to the specific customers physical security barrier needs. We have a number of patents and registered designs. We have an apetite for custom solutions and are experts at product development. We are regarded as the experts in our field.

Management Miklos Hegyi, Executive Director Adv. Tinus E. Lotz, Legal Tertius Venter-Davies, Executive Director Renier Martin, Finance

Contact Contact person Phone E-mail Website Address

Mr Miklos Hegyi +27-(0) 11-2 84-30 00 [email protected] www.maxidor.com 16 Arnold Street Alrode 1451 Johannesburg South Africa Miklos Hegyi

Adv. Tinus E. Lotz

Renier Martin

Business Field Planned Investment, Shareholders/Investors Maxidor is in the business of marketing, sales, manufacturing and installation of physical security barriers. We have two manufacturing factories in Johannesburg, two in Durban and one in Cape Town South Africa. We also have a branch in Pretoria and a world class Call Centre in Johannesburg. We are sales and marketing experts and have developed an acute ability to target our market. We advise clients on their security needs and manufacture custommade solutions from our range of products. We have developed a successful sub-assembly franchise model in Africa and have a network of franchises and agents.

Strategic Market Position Maxidor markets its range of expandable barriers, fixed window grilles, swing gates and roller shutters to domestic homes as well as commercial and industrial applications. A

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Maxidor has a well developed sub-assembly distribution strategy. The strategy has been implemented successfully in the factories in Cape Town and Durban as well as franchisees in four locations in South Africa and outside of South Africa in Ghana and Zimbabwe. This successful concept as well as the product range is well developed and ready for massive expansion. Maxidor has the logistical (Call centre in Johannesburg) and manufacturing infrastructure. Capital is required to expand this concept into the rest of South Africa, Africa, South America (Brazil) and Europe. Worldwide people are under threat in their homes and places of work. This market is growing. Maxidor has had 25 years of experience in South Africa providing these solutions to individuals, families and companies. These principles, strategies and products have been tested and are ready to be implemented worldwide.

Capital Seeking Companies

MCW Oil Sands Recovery, LLC Multi-Utilites

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

Strategic Market Position 2010 12 2 5 2011 0.0 0.0 2.2 12.5

Contact Contact person Dr. R. Gerald Bailey Phone +1-(0) 83 22 89 53-12 E-mail [email protected] Website http://mcwenergygroup.com/oilsandsllc.php Address 334 Main Street, Suite 101 E4P 2E Shediac, New Brunswick Canada

To date, the Utah oil sands areas have not been developed, mainly due to America’s reliance on foreign oil imports, and the fact that until now, an effective technology has not emerged to safely extract oil from oil sands materials. MCW Oil Sands Recovery, LLC is planning the development of its Asphalt Ridge oil sands lease with its unique, environmentally-friendly, proprietary technology with impressive hydrocarbon extraction levels (up to 99%), utilizing benign solvents within a closed-loop system, resulting in no greenhouse gases and oil extraction at commercially viable production costs. The technology requires no water during the process, and no high temperatures or high pressures are needed. It is scalable and extremely mobile, and the technology works efficiently on a wide range of oil and sediment types (both water-based and oil-based). The technology is highly profitable, especially during the current high oil price ranges. Due to its outstanding oil sands recovery technology, MCW Oil Sands Recovery, LLC believes it has the keys of technology expertise and the capability to open vast oil sands resources to production. The timing for the development of America’s oil sands deposits could not be better. There is a new attitude in the U.S. Government about the dependence on foreign oil and that America’s oil sands deposits should be developed.

Business Field Management MCW Oil Sands Recovery, LLC will produce and market oil extracted from oil sands resources from its lease in Asphalt Ridge, Utah. The Company is the sole owner of the Utah Oil Sands Lease and possesses a proprietary oil sands extraction technology, which stands alone in the industry with respect to environmental safety and efficiency. MCW Oil Sands Recovery, LLC expects a rapid, profitable growth with an excellent cash flow in a large market yearning for domestic fuel sources. America’s oil sands resources are primarily concentrated in Eastern Utah. The Company currently owns the mineral rights to 50+ million barrels of proven oil sands reserves in the prolific Asphalt Ridge area.

Alexsandr Blyumkin, CEO, MCW Oil Sands Recovery, LLC R. Burk Adams, P.E., COO, MCW Oil Sands Recovery, LLC R. Gerald Bailey, CEO, MCW Energy Group Ltd

R. Gerald Bailey

Planned Investment, Shareholders/Investors Planned Investment 5 m€; MCW Energy Group Ltd

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Capital Seeking Companies

Medicyte GmbH Biotechnology

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2007 14 3 2 2013 0.1 0.1 0.5

technologies upcyte® and vericyte® enable to produce novel types of healthy human primary cells which have not been commercially available so far in scalable quantities and of highest quality. Our lead product are standardized human hepatocytes from different donors as the better alternative to current in vitro ADME-Tox models. Medicyte is targeting the fast growing markets for cells and cell systems as well as the emerging multi-billion Euro market for regenerative medicine. Medicyte has developed its innovative technologies to a proofof-principle stage in a variety of human primary cell types. First revenues are generated from non-therapeutic licences grants and R&D products (Liver, NK, Endothel etc.). Further therapeutic applications for acute liver failure and bone regeneration are under development.

Contact Management Contact person Phone E-mail Website Address

Dipl.oec. Stefan Holder +49-(0) 62 21-7 29 52-30 [email protected] www.medicyte.com Im Neuenheimer Feld 581 69120 Heidelberg Germany

The Company is managed by a team with more than 60 years of biotech, pharmaceutical industry and product development experience. Managing Directors: Dr. Joris Braspenning, Founder and CSO, Stefan Holder, Founder and CFO.

Business Field Medicyte is a cell technology company specialized in the controlled, scalable generation and standardization of human primary cells. Medicyte’s vision is to establish its unique and patent protected technology as a gold standard and preferred source of human primary cells and human cell-based products for research, industrial and therapeutic applications. The Company has developed its innovative cell proliferation technology ready for commercialization and is now focussing on further market implementation of new innovative cell products and ready-to-use kits.

Strategic Market Position Medicyte has developed a unique cell proliferation technology that forms the basis for novel cell-based research tools and cell therapy products. Differentiated primary cells have no or only limited proliferation capacities. Our proprietary

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Dr. Joris Braspenning, CSO

Stefan Holder, CFO

Planned Investment, Shareholders/Investors In a Series B financing round the Company intends to raise a single-digit million Euro amount to continue the development of new products and prepare the path to further clinical applications. Of equal importance is the extension of the production capacities as well as the expansion of the marketing and sales activities. Medicyte has previously secured funding from the Prinz von Hohenzollern Capital, the KfW, from a business angel and from public grants.

Capital Seeking Companies

Metasonic AG Software

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2004 45 8.583 ca. 10 0.927 1.95 3 to 6 6 to 12

Contact Contact person Phone E-mail Website Address

Intelligence (rapidly making the right decisions), Real Resilience (being prepared for the unexpected), Real Enterprise (fulfilling tasks as soon as they are needed) and Real Return on Invest (fast and high ROI). That`s Metasonic reality. E.g. NEC Japan was able to increase productivity by 70% in an implemented process. Additionally, a significant reduction of implementation and changes costs within the IT-department could be achieved. Metasonic considers NEC (Japan), Fiducia, FI-TS, AUDI, TESAT and SAP Research as their reference customers. To this date Metasonic has partners in Japan, Singapore, the Russian Federation, Austria, Switzerland, the Middle East and India.

Management Herbert Kindermann +49-(0) 84 41-2 78 10-1 00 [email protected] www.metasonic.de Münchner Str. 29 - Hettenshausen 85276 Pfaffenhofen Germany

Herbert Kindermann, CEO, since Aug. 2009 sole Board member, appointed in 2007. Prior to that member of the board of IDS Scheer AG. Additional management positions with COMSOFT GmbH, IBCS S.A. (Founder and CEO with subsidiaries in Germany, Czech Republic and Slovakia), acquisition of IBCS by IDS Scheer in May 2001. Supervisory board: Dr. Albert Fleischmann; MSC Computer Science; Chairman of the Supervisory Board and Founder of Metasonic AG; Hansjoerg Baur; Investment Manager; T-Venture Holding GmbH; Deputy Chairman; Jürgen Hopfner; Investment Manager; BayBG.

Business Field Development and Sales of a Software Solution for dynamic Business Process Management, based on the idea of S-BPM, developed and patented by Dr. Albert Fleischmann. Sole focus of Metasonic is the sales of licenses. Consulting, as well as international sales, is done through an international partner ecosystem.

Strategic Market Position Only with the Metasonic Suite it is possible to use a single process model (identical for business and IT) to represent the reality of the process 1:1, and execute the process instantly. This is unique and revolutionizes Business Process Management as it is known to date. This is achieved by the method of subject-oriented BPM, which was added as a new category to the Gartner BPM Hype Cycle in 2011. Delivered value for our customers: Real Business

Herbert Kindermann, CEO

Dr. Albert Fleischmann, Chairman Supervisory Board

Planned Investment, Shareholders/Investors Main investors: BayBG: 7,61%, KfW: 17,52%, T-Venture: 45,17% Rest: management, founder, employees and small investors – planned investment: Min. of 10 m€ for the ongoing internationalization in Asia, US, Europe and further development of the software.

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Capital Seeking Companies

Micropelt GmbH Energy Efficiency & Reduction of Emission

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2006 22 3 0.3 0.3 0.6 1.9

Contact Contact person Phone E-mail Website Address

Fritz Volkert +49-(0) 7 61-15 63 37-77 [email protected] www.micropelt.com Emmy-Noether-Str. 2 79110 Freiburg Germany

Millions of thermostatic heating valve actuators can be operated from only one 6 mm^2 chip. Wireless sensor is used as monitor or smart meter measuring temperature and current consumption can be used from only 5 degree Celsius temperature difference. Home automation and building technology applications offer huge potential with millions of units per year – in Germany alone.

Strategic Market Position In the fast growing market of thermoharvesting, Micropelt reached the highest level of industrialization, both in chip mass production as well as application development. Micropelts qNODE is the world’s first thermoharvesting based wireless sensor. Many years of chip production know-how and IP will secure it is significant competitive advantage.

Business Field Micropelt develops and markets chip-size thermogenerators that convert heat into milli-Watts of electrical energy. The products are manufactured on semiconductor-type mass production lines that will start its roll-out in early 2012. Economies of scale have been the driving force behind a scalable product business model, which allows broad market penetration from industrial and commercial to the point of cost sensitive consumer applications. Increase in energy efficiency and better resource utilization does require more and more monitoring and control of processes and facilities. Wireless sensors and actuators e.g. control heating, cooling and energy transport and distribution. One of the biggest hurdles is the limited lifetime of batteries when used as power supply. And wiring cost in existing buildings and facilities can be a prohibiting factor. Micropelt products solve these problems through recycling of waste heat as an infinite, maintenance free, “deploy-and-forget” power source at minimum cost.

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Fritz Volkert, CEO

Oliver Keilhack, CFO

Management Founder and CEO Fritz Volkert spend 15 years in the international semiconductor business; Co-founder and CTO Dr. Joachim Nurnus (Dr. Ing) is a high profile and leading scientist in thermoelectric since 10 years. CFO Oliver Keilhack has 15 years international experience in financing of start-ups und blue chips.

Planned Investment, Shareholders/Investors 3 m€ to be provided to fund launching cost and expansion to break-even in 2013; SHS Venture Capital; KFW; L-Bank Baden-Württemberg; Goodvent; Management GbR.

Capital Seeking Companies

mimoOn GmbH Software

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2006 50 1.4 6.0 0 1.0 2.3 3.0 7.0

Brian Meads, VP Sales & Marketing, previously with TTPCom, Ericsson, 15 years of Sales & Marketing Expertise, Jan Westmeier, VP Engineering, previously with Nokia, Ericsson, Headed the LTE pioneering team @ Nokia, Willem Mulder, VP Standards & IPs, previously with Agere, Lucent, Ericsson, 20 years of Wireless & Silicon Expertise, Peter Walther, VP Business Development, previously with TTPCom, TI, 7Layers, 25 years of Wireless Expertise, René Kantehm, VP Finance, previously with IKB AG and West LB banks, 8 years in financial control

Contact Contact person Phone E-mail Website Address

Prof. Dr.-Ing. Thomas Kaiser +49-(0) 2 03-3 06 45-00 [email protected] www.mimoon.de Bismarckstr. 120 47057 Duisburg Germany

Thomas Kaiser, CEO

René Kantehm

Business Field Software licensing (upfront fee & royalties or one-time payment; evaluation, development or manufacturing license)

Strategic Market Position

Planned Investment, Shareholders/Investors Investors: NRW Bank Venture Capital, Enjoy Venture, KfW, HTGF, Vivieris, Aumenta

Market: Focus is the LTE Software market (no application software) Volume is greater than 1 bnUS$ Market entry is achieved, products are shipping World leading chip and IP core partners

Management Thomas Kaiser – CEO, Founder of mimoOn GmbH, 10 years of MIMO Expertise, Matthias Wesseling – CTO, previously with Siemens, BenQ, 15 years of SDR Expertise,

Deutsches Eigenkapitalforum 2011 Page 147

Capital Seeking Companies

mitcaps GmbH Telecommunication Services

Profile

mitcaps delivers its service portfolio on an individual basis and scalable to the customer needs.

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2007 18 1.9 2010 1.26 3.1 4.5 6.9

Contact Contact person Phone E-mail Website Address

Wilfried Röttgers +49-(0) 61 31-9 50 19-10 [email protected] www.mitcaps.de/ Mombacher Str. 40 55122 Mainz Germany

Further services like consulting, Internet security, convergence solution, and overall IT services complete the portfolio.

Strategic Market Position mitcaps is the only virtual network operator focussing only on the international operating mid-sized market in Germany offering this individual combination of services on a worldwide basis. All vertical market sectors can benefit from mitcaps service which is individually designed for each customer. With the mitcaps’ technology, carriers and service partners can extend their global reach beyond their own footprint.

Management Wilfried Röttgers, CEO & Founder Michaela Pfeifer, CFO, Head of HR & Project Management Ingo Kemper, Head of Engineering & Operations Harry Boele, Investor Relations

Business Field mitcaps GmbH – located in Mainz – is a virtual network operator (VNO). As a VNO, mitcaps provides managed data network services worldwide to medium-sized companies and ensures their secure transfer of data and VoIP communication based on state-of-the-art technologies from MPLS, Ethernet, IPSec, SDH to LTE. mitcaps contracts the capacity of lines from various telecommunication and service providers, merges the sub networks to one homogeneous and optimized VPN solution and enriches them with first class value-added services. The customer benefits from our special service features such as single sourcing, billing, contract and inventory management, monitoring through a single point of contact. Through flexible and transparent business processes mitcaps always “delivers profit” to its customers.

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Wilfried Röttgers, CEO

Planned Investment, Shareholders/Investors Investors: W. Röttgers, KfW, ISB, GPV Investment, Ltd

Capital Seeking Companies

MOBILES REPUBLIC Publishing & Printing

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

Strategic Market Position 2008 15 3 -

Contact Website Address

www.mobilesrepublic.com Imm P / Bureaux du Lac II / Rue Robert Caumond 33049 BORDEAUX France

Mobiles Republic products capitalised on 3 trends : a) It has never happened before in the history of civilisation that so many people spend so much time reading so many news. b) As any other type of content such as videos and music, news will follow delinearisation. c) The application eco system, based on his success on mobile and tablet is going beyond reaching TV & PC.

Management Gilles Raymond: from 1998 to 2005 Gilles was the CEO and Founder at In-Fusio, a mobile technology provider that deployed on 50 million phones worldwide. Thierry Vazzoler: CTO of the company. He was IT Project Manager at the N°1 ecommerce website in France. David Finch (UK ): Business development with experience in mobile content and Internet solutions. Jérôme Le Feuvre: worked in 8 countries on mobile operator related activities. Recently he was heading the mobile entertainment activities at Orange France. Todd Mc Kellar (USA) was head of Business Dev for Hiplogic.

Business Field Mobiles Republic is an international mobile media group offering personalized content driven by intelligent semantic technology. News Republic, our first product, is a personalized news client/application for mobile, tablets and TV. Powered by our unique semantic tagging technology platform, it enables the user to build their own news and information portal based on 150 000 specific topics or tags they define. Today, News Republic offers more than 10,000 full news per day, in five languages globally. Top 10 best rated News Application in Europe & US, News Republic has been in the top 10 Android News section in US & Europe for the last 3 months. Our second product, Appy Geek, 3 months after launch is already in the top 10 of the News section of the android market.

Gilles Raymond, CEO

Planned Investment, Shareholders/Investors In order to consolidate our position in Europe and US, prepare our expansion in Asia, and go beyond mobile & tablets, we are raising money.

Deutsches Eigenkapitalforum 2011 Page 149

Capital Seeking Companies

Ningbo Strong Magnets Co., Ltd. Steel & Other Metals

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

1996 400 10 100 1996 1.5 2 5 8

With our technique we could provide a variety of complicated shape and many surface treatment. Furthermore the products can be magnetized in different direction of magnetization according to requests. Our technician could design different magnetic applications according to customers’ applies. Our R&D Center is dedicated to high-performance research and development. The products are widely used in electric automobile, wind generation, frequency conversion air condition, nuclear magnetic resonance, CD-Rom drive, vibrating motor, DC motor, linear motor, audio-systems, sensor, apparatus and toys etc.

Contact Contact person Phone E-mail Website Address

Zhengshan Sun +86-(0) 1 50-22 09 54 10 [email protected] www.magnets-china.com/ Qingshuipu Industry Zone, Zhenhai 315176 Ningbo China

Our company has sales offices in Germany, USA, Canada, Italy, Spain, India, Malaysia etc.

Management Our company is a high-technology enterprise with research & development ability and the permit of import & exporting. And passed ISO-9001-2000 quality system certification.

Planned Investment, Shareholders/Investors Business Field Ningbo Strong Magnets Co., Ltd. was established in 1996 and specialized in producing rare earth permanent magnets and many kinds of magnetic application. The annual throughput comes to NdFeB 1500 tons, SmCo 100 tons, AlNiCo 500 tons, Ferrite 8000 tons.The rare earth magnets are widely applied in auto industry, consumption electronics, wind generator, electric car etc. Since more than 98% of the rare earth are supplied by China all over the world, our company plays a key role as a top permanent magnet manufacturer between the rare earth raw material supplier and permanent magnet applicants.

The new manufacture workshop of our company will be completed in October, 2011. On one hand, we are looking for suitable partners who are in the area of rare earth magnets application. On the other hand, we plan to invest rare earth mine outside China.

Strategic Market Position Our company is one of the several manufactures in China which is occupying the whole production chain between the raw materal and applicable rare earth permanent magnets.

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Yuncheng Sun, General Manager

Zhengshan Sun, Investor Relations Manager

Capital Seeking Companies

Novaled AG OLED Technologie

Profile

Business Field

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2001 114 9.9 2011 8.3 11.2 -

Novaled AG is a world leader in the OLED (Organic Light Emitting Diode) field and specializes in high efficiency long lifetime OLED structures and is an expert in organic electronics. The company is known for its Novaled PIN OLED® technology, its proprietary OLED materials and customized OLED products and services. Novaled has developed long term partnerships with major OLED producers in display and lighting throughout the world.

Strategic Market Position Contact Contact person Phone E-mail Website Address

Harry Böhme +49-(0) 3 51-7 96-58 65 [email protected] www.novaled.com Tatzberg 49 01307 Dresden Germany

Novaled AG is a world leader in the OLED (Organic Light Emitting Diode) field and specializes in high efficiency long lifetime OLED structures and is an expert in organic electronics.

Management Harry Böhme, CFO Gildas Sorin, CEO Gerd Günther, CMO

Gildas Sorin, CEO

Planned Investment, Shareholders/Investors Harry Böhme, CFO

Gerd Günther, CMO

TechnoStart, Crédit Agricole Private Equity, TechFund, CDC Innovation, eCapital, KfW, TUDAG, Dresden Fonds, Thomson

Deutsches Eigenkapitalforum 2011 Page 151

Capital Seeking Companies

NTS Energie- und Transportsysteme GmbH Renewable Energies

Profile

Strategic Market Position

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2006 7 2.5 10 -

NTS X-Wind plants will reach a capacity of utilization of approx. 90%. The reasons for the extremly high availibilty can be seen in the fact, that wind is more continous and stable at higher altitude and that kites start to operate at 2 m/sec windspeed (common windmills start at 4.5 m/sec windspeed). Therefore the investment per kWh produced per annum with NTS power plants will be at least three times lower than with today’s windmills.

Management Contact Contact person Guido Lütsch Phone +49-(0) 30-88 72 09 03 E-mail [email protected] Website www.nts-transportsysteme.de Address Kurfürstendamm 217 10719 Berlin Germany

Uwe Ahrens, Technical Director: born 1953; “innovator of the idea”, Aerospace engineer (Dipl. Ing.), Founder and long-standing CEO of aap Implantate AG, IPO with aap implantate AG in 2001; CEO of co.don AG; Committee Chairman of innovation, technology and industry of the Berlin Chamber of Industry and Commerce, board member of the Gesundheitsstadt Berlin, among others.

Uwe Ahrens

Business Field NTS developed a patented and innovative wind power plant to harness the enormous energy of wind at an altitude of 300-500m/1.600 feet. The NTS-Concept assembles well-known technologies to a unique and flexible wind power plant which is able to produce baseload energy and is suitable to almost any territory: Automatically steered kites drag grounded cars running on a rail system in a closed loop. A feasibility study for BMW (plant Leipzig) showed that a NTS X-Wind-plant (speak: Crosswind) is at least 3x more efficient than a common windmill, that the capacity of utilization is approx. 90%, that X-Wind plants are suitable to nearly any territory and that they can produce nearly basload energy for lesser costs than fossil fuels. Some figures: a common windmill has 1.900 fuel load hours at Leipzig, NTS X-Wind plants 4.650! A test track of 400m has been established at northern Germany.

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Guido Luetsch, Managing Director: born 1965; business administrator (lic.oec, University of St. Gallen, Switzerland); 16 years of experience in managing medium-sized companies and project management for global players (Kraft Foods, Volkswagen, Schering AG). Guido Lütsch

Planned Investment, Shareholders/Investors MAMA Sustainable Incubation AG (with cornerstone investor 3M): 20%, KfW: 17,5%, Uwe Ahrens: 50,5%, Guido Lütsch: 9%, Others: 3%. Round B: NTS is looking for an investment of 13 m€ to finance a X-wind plant to generate 40 GWh/year. Subsidies are likely. Current investors will invest as well.

Capital Seeking Companies

Omikron Data Quality GmbH Software

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

1988 91 1.7 3.0 2005 4.6 5.4 6.5 10.6

Contact Contact person Phone E-mail Website Address

Carsten Kraus +49-(0) 72 31-1 25 97-1 25 [email protected] www.fact-finder.com Habermehlstr. 17 75172 Pforzheim Germany

Semantic Search is globally considered the next level of search technology. Our invention, the probabilistic inference engine, allows a better understanding of ambiguous human input, and thus produces even better search results. We have chosen the online travel industry as our first target market, as travel has a global revenue of 630 bnUS$ dollars and is the largest single eCommerce segment.

Management CEO Carsten Kraus co-founded Omikron in 1988 and set up FACT-Finder in 2001. The research team is headed by mathematician Emin Karayel. The Development and technical teams are lead by Siegfried Schüle, CFO Siegfried Raisin joined in 2010. The sales force for Germany is headed by Mathias Duda, international business is developed by Katrin Jähnke.

Business Field FACT-Finder is an innovative technology for Search & Navigation in webshops. By using FACT-Finder, online shops have measured to increase their revenue by 10-33%. We provide FACT-Finder mainly in an SaaS model, over 70% of our revenue is recurring. Carsten Kraus, CEO

This year, we have finished a new semantic search technology, which finds its first application in the largest online shopping segment: Travel.

Strategic Market Position 51 of Germany’s top100 online shops, in total more than 1,000 online shops in 26 countries rely on FACT-Finder – this makes us the European market leader with approx. 30% market share. Each month, FACT-Finder processes over 300 million search queries, which is about 7% of Microsoft Bing’s world wide volume.

Siegfried Raisin, CFO

Planned Investment, Shareholders/Investors The company is 100% owned by the founders and some employees. Omikron intends to raise a significant amount of equity, first to conquer 20% of the global travel portals, then to generally roll out the revolutionary semantic technology globally.

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Capital Seeking Companies

Platin Delikatessmanufaktur GmbH Food

Profile

Business Field

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2011 35 0.60 2.50 2012 0.00 0.00 1.00 10.00

Contact

Delicatessen for European Food Retail. Customerfocussed “White-Labels” are offered.

Strategic Market Position The German Anti-Pasti market is dominated by a few producers. The “Platin Delikatessmanufaktur GmbH” is a start-up in this market segment, which has taken over an insolvent company, which was active in this market segment since the beginning of the century.

Management

Contact person Phone E-mail Website Address

Michael Peter +49-(0) 70 32-2 03-0 [email protected] www.delikatessmanufaktur.com Bonner Str. 5 14197 Berlin Germany

Michael Peter, Founder Gordon Finlay, CEO (from 01.01.2012) Markus Fauser

Planned Investment, Shareholders/Investors Planned 6.50 m€ new investment in East Germany in 2012 Now: production is located near Stuttgart/Tuebingen for the new production we are looking for an investment with the minimum volume of 2.50 m€

Markus Fauser

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Capital Seeking Companies

REVOTAR Biopharmaceuticals AG Biotechnology

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

Strategic Market Position 2000 15 10.5 25 -

Contact Contact person Phone E-mail Website Address

Dr. Martin Pöhlchen +49-(0) 33 02-2 02 50-41 [email protected] www.revotar.com Neuendorfstr. 24 a 16761 Hennigsdorf Germany

Revotar’s clinical pipeline is based on the lead compound of Bimosiamose. The small-molecule active ingredient is the world’s most developed selectin antagonist for respiratory diseases. As a pan-selectin antagonist, Bimosiamose is directed at the various targets of the selectin family (E, P and L selectin), which play a central role in the development, perpetuation and worsening of inflammatory diseases. Given its entirely new, selectin-antagonist active principle, Bimosiamose represents one of the few promising therapy approaches that make a causal fight against inflammatory pulmonary diseases possible. In addition, Revotar’s pipeline consists of a new generation of selectin antagonists in the pre-clinical stage, which were developed using the company’s own technology platform (Rational Drug Design).

Management Dr. Martin Pöhlchen, CEO, former Pieris, MediGene, Tripos Ludwig Felber, CFO, former Viscardi, Cowen, HVB Prof. Dr. Wolfgang Meyer-Sabellek, CMO, former Charité, AstraZeneca, Boehringer Mannheim

Business Field Revotar is a privately owned biopharmaceutical company headquartered in Hennigsdorf near Berlin, which specialises in the development of innovative drugs for the treatment of chronic and acute inflammatory diseases. The research and development activities focus on anti-inflammatory small-molecule active ingredients for the treatment of severe respiratory diseases with a high medical need and an insufficient therapy. The two core areas of the clinical product portfolio are chronic obstructive pulmonary disease (COPD) and acute lung injury (ALI/ARDS). The company pursues the development of its own therapeutic projects until completion of clinical phase II in order to supply attractive active ingredient candidates with clinically proven efficacy and resilient, high sales expectations for licensing out to pharmaceutical companies.

Dr. Martin Pöhlchen, CEO

Ludwig Felber, CFO

Planned Investment, Shareholders/Investors bmp, BFB Brandenburg, ANZ Nomineees, IBG, MVC

Deutsches Eigenkapitalforum 2011 Page 155

Capital Seeking Companies

RIEMSER Arzneimittel AG Pharmaceuticals

Profile

Business Field

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

1991 600 52 1991 103 115 -

Contact Contact person Phone E-mail Website Address

Dr. Michael Mehler +49-(0) 3 83 51-76-59 [email protected] www.riemser.com An der Wiek 7 17493 Greifswald-Insel Riems Germany

RIEMSER Arzneimittel AG is a mid-sized specialty pharmaceutical company that markets primarily branded specialty/niche products for the area of Human Rx Specialties. The Company has a direct sales presence in Germany, France and the US with a rapidly growing presence internationally, selling into more than 80 countries worldwide.

Strategic Market Position RIEMSER is an international specialty pharmaceutical company, focussed on attractive niches in selected therapeutic areas with high medical need, blending hands-on Mittelstand-culture with top industry processes and standards, thereby delivering sustained top-tier growth rates, driven by targeted acquisitions, organic growth and geographic expansion. Key strategic areas comprise oncology, dermatology, antiinfectives and oral surgery technologies.

Management Dr. Michael Mehler, Chief Executive Officer, joined RIEMSER in 2009. He has more than 20 years of industry experience in leading pharmaceutical and biotech companies. Dr. Mehler managed worldwide successfully blockbuster and specialty/niche product portfolios. Beatrice von Buchwaldt joined RIEMSER in 2011 as Chief Financial Officer. She brings 25 years of experience in senior finance positions in a broad spectrum of industries ranging from consumer goods to finance to biotech/pharma/healthcare.

Planned Investment, Shareholders/Investors

Dr. Michael Mehler, CEO

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59.4% of the shares are held by the Braun Family, founders of the company. The remaining shares are held in equal parts by General Electric Equity and TVM Capital.

Capital Seeking Companies

Sana Kliniken AG Healthcare

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

Management 1976 22,483 413.2 1,254 1,484 -

Dr. Michael Philippi, CEO Thomas Lemke, CFO Jan Stanslowski, management board member HR Dr. Markus Müschenich, management board member Medicine

Planned Investment, Shareholders/Investors Financing requirements The financing requirements comprise transactions and investment.

Contact Contact person Phone E-mail Website Address

Thomas Lemke +49-(0) 89-67 82 04-1 15 [email protected] www.sana.de Oskar-Messter-Str. 24 85737 Ismaning Germany

Majority shareholders/Investors Sana is owned by 31 leading private health insurance companies. The majority share-holders consist of the DKV (21,7%), Signal (14,5%), Allianz Private (13,8%), Continentale (10,1%), Debeka (10,1%), Deutscher Ring (4,2%), Barmenia (3,7%), and other private health insurance companies (21,9%).

Business Field Apart from the core business area which is the acute medical care at over 50 different hospitals, the Sana Kliniken AG focusses on hospitals that specialize in the following key medicines: cardiovascular medicine, orthopaedics and neurology. Rehabilitation hospitals and retirement homes complete their medical services.

Strategic Market Position Dr. Michael Philippi, CEO

Thomas Lemke, CFO

The Sana Kliniken AG is the number four among Germany’s private clinic groups. It ranks among the top five private European market leaders.

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Capital Seeking Companies

SemiLev GmbH Semiconductors

Profile

Business Field

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2010 6 0.7 3 2014 0.4

SemiLev develops and markets Equipment Frontend Modules (EFEMs) and sorters for wafer-handling in the semiconductor industry. The heart of these products is a proprietary technology platform based on contactless bearings made practical for wafer-handling for the first time. This constitutes a decisive step toward completely contamination- and wear-free wafer processing in a chip factory. Even energy- and data-transfer processes are executed without contact.

Strategic Market Position Contact Contact person Phone E-mail Website Address

Willi Rugen +49-(0) 60 22-2 61-8 00 [email protected] www.semilev.de Industriering 7 63868 Grosswallstadt Germany

SemiLev has entered the handling equipment market with a new protected proprietary technology which gives the company a clear USP. SemiLev’s products help its customers to significantly improve the yield in computer chip production and reduce total cost for equipment ownership.

Management SemiLev is lead by a high profile management team. Willi Rugen (56), chief sales and finance officer, looks back to 30 years management experience in sales and finance. In his career he several times successfully built up and grew new business units and lead larger entities with a multi bn€ business volume. Willi holds a Master degree in economics. Dr. Ulrich Oldendorf (46), chief technology officer, started his career as an assistant professor and then founded and successfully developed a business in the field of mechatronics. Ulrich holds a PhD in mechanical engineering.

Planned Investment, Shareholders/Investors

Willi Rugen

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SemiLev is seeking a funding commitment of 3 m€ for the expansion of its sales and service organization, assembly facilities and further R&D.

Capital Seeking Companies

Signature Diagnostics AG Biotechnology

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2004 33 7.9 15 1.6 0.6 0.4 1.9

Contact Contact person Phone E-mail Website Address

Prof. Dr. André Rosenthal +49-(0) 3 31-20 00-2 01 [email protected] www.signature-diagnostics.de Hermannswerder 20a 14473 Potsdam Germany

a focussed commercialization strategy targeting six key metropolitan markets. The Company is currently evaluating its regulatory and commercialization strategy in the United States and has the potential to launch Detector C alone or with a strategic partner as a laboratory developed tests (LDT) in early 2013 or as a FDA-approved test in 2014.

Strategic Market Position Large market opportunity with significant growth potential; Detector C is a game changing diagnostic product for early CRC screening; strong value proposition of Detector C will drive adoption; deep pipeline of earlier stage product candidates to drive long-term growth; strong IP position provides competitive advantage and creates barrier to entry.

Management Prof. Dr. André Rosenthal, CEO Dr. Rainer Kramer, CBO

Business Field Signature Diagnostics AG is a molecular diagnostics company that discovers, develops and commercializes innovative in vitro diagnostic tests to detect cancer at an early stage, predict the prognosis of cancer patients and predict the drug response of cancer patients. The Company’s lead product, Detector C, is best-in-class non-invasive blood-based test for the early detection of colorectal cancer (CRC). The CRC screening market remains largely underpenetrated given the low compliance rates, and as such, the Company believes the market has significant potential to grow with the launch of Detector C. Signature intends to target the non-compliance segment of the market and projects the global market opportunity for Detector C to be approximately 5 bnUS$ by 2018. The Company projects its revenues in the US and Germany to reach 1.3 bnUS$ by 2018, representing 25% market penetration. The Company intends to launch these products in Germany in early 2012 utilizing

Prof. Dr. André Rosenthal, CEO

Dr. Rainer Kramer, CBO

Planned Investment, Shareholders/Investors Financing need: 20 m€; VC investors: 61%, private investors: 13%, management: 26%

Deutsches Eigenkapitalforum 2011 Page 159

Capital Seeking Companies

SIRION BIOTECH GmbH Biotechnology

Profile

Strategic Market Position

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2006 11 2.3 2.5 2013 0.263 0.445 0.450 0.700

Contact Contact person Phone E-mail Website Address

Dr. Christian Thirion +49 (0)-89-70 09 61 99-15 [email protected] www.sirion-biotech.de Am Klopferspitz 19 82152 Martinsried Germany

Today, most industrial and academic cell line development is made in-house; such captive in-house development presents the main competition to SIRION BIOTECH. With its focus and commitment, its vast technology platforms and its long standing experience, SIRION BIOTECH’s Cell Competence Center presents an attractive alternative for clients to outsource such development for effectiveness and efficiency. In addition, outsourcing as a trend is accelerating to allow clients to focus on their core capabilities. As a consequence, leading European drug discovery companies like Bayer and Merck are on SIRON BIOTECH’s client list and entertain framework service agreements.

Management SIRION BIOTECH was founded in 2006 by Dr. Christian Thirion, a renowned expert in cell line development. He serves as its Chief Technology Officer. Chief Operating Officer is Dieter Lingelbach, a sales & marketing professional with many years of leadership and management experience at Roche Diagnostics/Roche Applied Science and MorphoSys.

Business Field SIRION BIOTECH is a technology leader in the field of functional gene analysis and cell models for basic research, drug and compound development. The company serves leading European and Japanese Drug and Biotech companies as a provider of latest technologies for them to advance identification of novel compounds and target validation. SIRION BIOTECH has over the years developed vast virus platform technologies that allow for effective knockdowns and overexpression of target genes. With its proven RNAi validation system, SIRION BIOTECH is able to achieve gene knockdowns of about 90% thus outperforming current industry standards by multiples. In only 6 weeks SIRION BIOTECH can provide for new custom-made cell pools. With its set of skills and technologies, SIRION BIOTECH contributes significantly to the shortening of pre-clinical development cycles.

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Dr. Christian Thirion

Dieter Lingelbach

Planned Investment, Shareholders/Investors SIRION BIOTECH is funded by Creathor Venture, Bayern Kapital, KfW & HTGF. It seeks funding for further rolling out its business model into the North American and Japanese markets and to leverage its base technologies for related ready-to-go high value products suitable for outlicensing.

Capital Seeking Companies

SUNOVA AG Renewable Energies

Profile

Management

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2008 25 1.8 10 2009 9 21 10 13

Werner Innerhofer, CTO (Chairman) Werner Hillebrand-Hansen, CTO

Planned Investment, Shareholders/Investors Stockholders: - Hans Steinbronn - Werner Innerhofer - Werner Hillebrand-Hansen - Marino Fantin - Hans-Dieter Broschwitz

Contact Contact person Phone E-mail Website Address

Werner Innerhofer +49-(0) 89-1 89 04 73-72 [email protected] www.sunova.eu Bretonischer Ring 11 85630 Gransbrunn Germany

Financing requirement 10 m€: Mezzanine capital for a solid equity base for development of the SUNOVA Smart Energy business sector, investment and operation of solar plants

Business Field Solar power stations on industrial and commercial flat lightweight roofs

Strategic Market Position SUNOVA is specialist for solar power stations on industrial and commercial flat lightweight roofs. In the installation of solar power stations, the company unites expertise in flat roof and solar technology, using in-house-developed fixing methods for solar generator and roof sealing. USPs: • Roof solar installation from a single source • Flat roof compatible solar technology • 20 years stability guarantee

Werner Innerhofer, CEO

Werner Hillebrand-Hansen, CTO

Deutsches Eigenkapitalforum 2011 Page 161

Capital Seeking Companies

Superwise Technologies AG IT-Services

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2007 15 2 3.5 2012 0.25 1.0 0.6 3.0

Contact Contact person Phone E-mail Website Address

Dr. jur. Ernst Pechtl +49-(0) 81 71-9 69 69-0 [email protected] www.superwise-technologies.com Bahnhofstr. 26 82515 Wolfratshausen Germany

proprietory technology, Superwise provides meaningbased speech analysis and thus offers technology for comprehensive video search. This technological edge is enhanced by user-friendliness: Superwise’s software is capable of learning: the training material simply has to be imported, learning is performed fully automatically – and fast. No programming is required. Among the numerous possible market segments Superwise has decided for media and tv (video analysis in the fields of medicine is economically most interesting and can be licensed). Currently, a beta version is implementation for a global satellite company. All available data indicate Superwise’s excellent position as comparable solutions are hardly offered. There is a keen interest for this solution. In order to serve the market an investment in personnel and infrastructure is required, which should essentially be covered by capital injection.

Management Dr. jur. Ernst Pechtl, CEO Torsten Dobroschke, Head of Development Supervisory Board: RA Dr. Oliver Maaß, Dr. Robert Zores, Heiko Eckelt

Business Field Development and distribution of software for the search in and the analysis of multimedia data, especially in large archives of media companies, A/V archives and organizations right up to realtime scene-analysis of supervisory video cameras.

Strategic Market Position Dr. Ernst Pechtl, CEO

Currently images and videos can hardly be searched for their content. Instead, only a keyword search can be carried out, provided the searched images are tagged. Therefore, only tagged content can be found. The same is true for videos, drawings and the like. But the market urgently calls for real image search and analysis. Superwise presents for the first time a REAL image search: a search engine for the content of digital images and videos. Video search/analysis requires analysis of the sound track, too. With similar,

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Planned Investment, Shareholders/Investors Ca. 3,5 m€. Assignment: productization, sales infrastructure, extension of development capacities, broadening of IP. Founder Dr. Ernst Pechtl: ca. 75%, investors: ca. 25%

Capital Seeking Companies

Targos Molecular Pathology GmbH Biotechnology

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2005 65 1.95 5 2005 4.3 4.7 5.0 5.4

Contact Contact person Phone E-mail Website Address

Dr. Thomas Henkel +49-(0) 5 61-5 00 45-3 00 [email protected] www.targos-gmbh.de Germaniastr. 7 34119 Kassel Germany

currently 700 mUS$, plus an additiona 300 mUS$ for reference testing in regions with insufficient access to biomarker testing but need for targeted therapies. A market share of 5-10% will offer a revenue potential of up to 100 mUS$. The Targos USP is the know-how with large and complex international biomarker trials and IVD approval studies and the large and experienced pathology team.

Management Targos founders and top management represent the companies core expertise: Dr. Thomas Henkel (CEO) enjoys a 20-year experience in the biopharmaceutical industry as entrepreneur, innovation manager and research director (MediGene, Tularik). Prof. Josef Rüschoff (Chief Medical Officer) is one of Germany’s most dynamic clinical & molecular pathologists. He gained international reputation by 10-years of achievements in the clinical testing of predictive biomarkers. He is on the SABs of Roche, Merck-Serono und DAKO.

Business Field Targos Molecular Pathology GmbH is a preferred provider for clinical biomarker services. The main product is highly standardized biomarker analytics under GCP conditions combined with project-logistics and data management. Our daughter company Targos Advance AG offers training & education, consulting, marketing support und reference testing for the industry. The R&D daughter Targos Development AG develops an own portfolio of proprietary biomarkers and targets and offers the industry co-development of companion diagnostics.

Strategic Market Position The global market for next generation cancer diagnostics is currently 776 mUS$, reachin up to 5 bnUS$ in 2015. Targos cooperates with 6 of the Top 15 Global Industries. The market potential for biomarker services for industry customers is

Dr. Thomas Henkel, CEO

Prof. Josef Rüschoff, CMO

Planned Investment, Shareholders/Investors Establishment of tele-pathology and new Targos locations (Cologne, potentially US, Brazil, China), strengthening of marketing activities (web-presentation, congresses), expansion of the reference testings in Latin America and Middle East. Planned investments of about 5 m€, for organic growth. For accelerated growth by acquisition higher investments are foreseen.

Deutsches Eigenkapitalforum 2011 Page 163

Capital Seeking Companies

Torqeedo GmbH Energy Efficiency & Reduction of Emission

Profile

Business Field

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2005 36 5.0 2013 5 6.3 9.2 13

Contact Website Address

www.torqeedo.com Petersbrunner Str. 3a 82319 Starnberg Germany

Torqeedo is the global leader in e-mobility for boats, focussing on electric outboards.

Strategic Market Position Torqeedo outboards convert limited battery supply better into propulsive power than any other outboard on the market. In addition, they offer product-specific advantages like ultra-lightweight design, integrated GPS-based range calculation, competitive price-points etc. Drivers for Torqeedo’s unique performance are unique technological advantages with regards to module-technologies (motor-, battery-, propeller-technology) as well as system-technologies (e.g. safety, user-interface, corrosion resistance). Torqeedo is leveraging the unique product advantages to build an international consumer brand for clean outboards. As the global pioneer in this field, Torqeedo stands already today for clean high-tech drives with superior performance.

Management Christoph Ballin, Co-Founder and Managing Director – prior positions include Managing Director Gardena Deutschland GmbH, Corporate Sales Director Gardena AG, Engagement Manager McKinsey & Company Inc.

Christoph Ballin Photo: Torqeedo GmbH

Planned Investment, Shareholders/Investors Main current investors: Wheb Ventures, Brose Trust AG, Extorel AG

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Deutsches Eigenkapitalforum 2011

Capital Seeking Companies

van den Berg AG Software

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

Strategic Market Position 1986 58 1.2 4.0 2007 3.9 4.1 4.1 10.0

Contact Contact person Phone E-mail Website Address

Hans-Rainer van den Berg +49-(0) 24 06-9 54-5 50 [email protected] vdb.de Im Strasser Feld 3 52134 Herzogenrath Germany

The costs for the SEPA implementation of the bank customers are expected to be a double-digit billion amount. The introduction of SEPA at bank customers is a project, which goes far beyond the accounts department. Affected are the managements department, the staff department, treasury, the legal department, marketing, IT, the sales department, the mail-administrating department, archive/ research and the customer service. For that reason the implementation of the vdb/SSC will be accomplished through experienced consulting partners (as e.g. cirquent, C1FinCon, Pass Consulting).

Management Hans-Rainer van den Berg, CEO G.-D. van den Berg, Authorized Representative A. Frank, G. Wöbken, Authorized Representatives

Business Field Since 25 years the van den Berg AG (vdb) stands for innovative solutions in the field of payment transactions – development, distribution, support and finally operating of a SWIFT Service Bureau. By now, vdb’s SEPA solutions are implemented since four years at banks, as e.g. at the Oldenburgische Landesbank, ING DIBa, National Bank and the Wüstenrot Bank. Hans-Rainer van den Berg

The activities concerning the SEPA development started in 2006 with the SEPA Credit Transfer (SCT). In the following, solutions for SEPA Direct Debit (SDD) and mandate management for debtor banks were developed. With the planned EU-regulation, the adoption of SEPA-payments also for bank customers (corporates) will become obligatory. Van den Berg has extended its SEPA-solutions for banks in respect to the needs of the bank customer.

Planned Investment, Shareholders/Investors 4 m€ H.-R. van den Berg and G.-D. van den Berg

Deutsches Eigenkapitalforum 2011 Page 165

Capital Seeking Companies

VESTOLIT GmbH & Co. KG Chemicals, Commodity

Strategic Market Position Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

1994 560 40 30 2011 344 404 462 513

Contact Contact person Phone E-mail Website Address

Dr. Michael Träger +49-(0) 23 65-49-55 12 [email protected] www.vestolit.de Paul-Baumann-Str. 1 45772 Marl Germany

VESTOLIT has long-term relationships with its customers offering them advantages that few or none of our competitors can provide. We generally target higher value-added specialised PVC products such as paste PVC which protects us from the cyclicality of PVC prices. The Monomers business is predominantly focussed on lowest cost to supply our downstream processes. In addition to that it excels in the production of specialty chlorine derivative products such as Ethylchloride, where we are Europe’s only producer, and Methylchloride where we are number 2 in Europe’s merchant market. Our monomer plants also form an essential part of the production of the chemical park in Marl where we are supplying basic chemicals and offering production services to other chemical companies.

Management Dr. Michael Träger, Managing Director, CEO, Thomas Dötsch, CFO, Dr. Michael Beziel, VP Operations Monomers, Dr. Dieter Polte, VP Operations Polymers, Dr. Thomas Neu, Marketing Monomers, Hans-Christoph Porth, Marketing Polymers, Dirk Weinmann, Production Services, Martin Rath, Human Resources

Business Field VESTOLIT is a major European manufacturer of PVC and operates Europe’s largest fully integrated plant for PVC production. VESTOLIT targets specialised PVC products and has a leading European market share for HIS-PVC and paste PVC. Our site at the chemical park in Marl, Germany, provides us with lowest costs thereby enhancing our competitiveness. The business is managed through three product divisions: Extrusion PVC which produces predominatly HIS-PVC for window profiles; Paste PVC which produces grades for the automobile industry, flooring, wall coverings and coated fabric products; and Monomers which produces chlorine, caustic soda and other chlor-alkali products which are sold to industrial organic and inorganic chemicals customers.

Dr. Michael Träger, CEO

Planned Investment, Shareholders/Investors Private Equity owned (Strategic Value Partners)

Page 166

Deutsches Eigenkapitalforum 2011

Thomas Dötsch, CFO

Capital Seeking Companies

VST Verbundschalungstechnik GmbH – VST Group Construction material

Profile Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2002 230 6.6 5.0 – 10.0 2005 9.9 18.8 24.0 30.0

Contact Contact person Phone E-mail Website Address

Dr. Michael Müller +43-(0) 66 44 64 03 89 [email protected] www.vst-austria.at Feuerwehrstr. 17 2333 Loepoldsdorf Austria

Industrialized construction methodology: More than 50% of construction work is relocated to the production facilities of the own VST fabric. Tow business fields: 1.) Formwork system for construction companies 2.) Technology & License Business

Strategic Market Position Regional market leadership is already achieved in cooperation with a world market leading company in construction business, SKANSKA AB of Sweden in the multi-storey buildings market of Sweden. VST system meets all mega trends in construction as the Green Building Trend, Fast Speed Construction, Off-site construction methodology and Freedom of Design. Set of IPs and production know how allow protection of a sustainably increasing market position.

Management Well approved technical as well as financial capabilities. Audited consolidated annual reports since 2008 based on IFRS standard. Complete management team at best age consists of CEO/CFO (Founder), COO and CTO. All with academic degrees.

Business Field A world market product in construction material as “Green Building Technology” component. Patent protected VST permanent formwork system meets worldwide standards and allows every local design and type of building. VST industrially manufactured formwork forms after poured with self compacting concrete at the construction site, a fully loadbearing shell of any user-defined structural design. VST system saves 50% of construction time and offers superior building features. Strong Clean Tech profile: highest thermal insulation standard. Certified Passive House component. Allows lowest running costs over life cycle of buildings because of significant energy savings and minimal maintenance level for the shell, approved by life cycle assessments. Minimal construction waste saves costs of site cleaning and disposal and protects environment. High accuracy & precision offer best of class construction quality. No internal or external plasterwork necessary.

Mag. Dr. Michael Müller

Ing. Siegfried Gassner

Planned Investment, Shareholders/Investors Capital need is is at least 5 m€ up to 10 m€ in a first finance round. An IPO is considered over the next two years. Company is fully owned by the Founder and CEO.

Deutsches Eigenkapitalforum 2011 Page 167

Capital Seeking Companies

Windreich AG Renewable Energies

Profile

Business Field

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

1999 100 142 75-100 1999 113 125 150 >200

Contact CContact person Phone E-mail Website Address

Matthias Hassels +-(0) 70 22-95 30 60 [email protected] www.windreich.ag Esslinger Str. 11-15 72694 Wolfschlungen Germany

The Windreich AG is one of the leading pioneers in the development of wind energy. The company was found in 1999 and has since then; built, financed, and operated more than 1000 wind turbines (2000 MW). After successfully testing the possibilities of onshore wind, the Windreich AG decided to expand its field of business to include the construction and management of large offshore wind parks. Again, the Windreich AG found itself in a leading role in the expansion of this new market segment which is rapidly growing. Because of its unique market position, the Windreich AG will once again have a leading role in one of the major developments in renewable energies.

Strategic Market Position Through the company’s extensive experience in the development of onshore wind, the Windreich AG was able to secure a key market advantage by securing limited property and building rights for offshore wind parks. According to an industry report, the Windreich AG has secured property rights for 40% of all possible offshore wind park projects in the German North Sea. Windreich’s first offshore wind park, Global Tech I consists of 80 wind turbines each with a capacity of 5 MW. The project is running on-time and is expected to be connected to the grid in 2012. Due to Windreich’s extensive project pipeline, the company plans to realize one offshore wind park annually.

Management Willi Balz, CEO and sole shareholder Dr. Walter Döring, Chairman of the Board Heiko Roß, Director of Technology Matthias Hassels, Chief Financial Officer

Planned Investment, Shareholders/Investors Willi Balz, CEO

Page 168

Dr. Walter Döring, Chairman of the Board

Deutsches Eigenkapitalforum 2011

Funding requirements exist on two levels: project level (1.7 bn€ total investment volume, 1/3 equity, 2/3 financing) corporate level (financing for upfront investments made by the Windreich AG to secure the offshore project pipeline)

Capital Seeking Companies

Zimory GmbH Software

Profile

clouds, test & lab clouds and enterprise IT consolidation across multiple sites, while avoiding costly lock-in.

Year of establishment Number of employees Equity (in m€) Financing needs (in m€) Positive result since Revenues in 2009 (in m€) Revenues in 2010 (in m€) Revenues in 2011e (in m€) Revenues in 2012e (in m€)

2007 30 -

Ruediger Baumann, CEO Maximilian Ahrens, CPO

Contact Contact person Phone E-mail Website Address

Maximilian Ahrens +49-(0) 30-6 09 85 07-18 [email protected] www.zimory.com Revaler Str. 100 10245 Berlin Germany

Prof. Dr. Gustavo Alonso, CTO

Management Ruediger Baumann, CEO, brings to Zimory a wealth of experience and expertise, with more than 30 years of knowledge within the IT and communications industries. Prior to Zimory, Ruediger successfully served in well-known enterprises like Philips and ADC, and start-ups that have included British Telecom spin off companies.

Zimory provides dynamic, independent and elastic cloud management software that enables Enterprise Companies and Service Providers to transform their virtualized data centers into Cloud Services infrastructures and Cloud Service Provider’s to set up and offer high quality Infrastructure as a Service (IaaS).

Maximilian Ahrens, CPO, is a frequent speaker at international conferences for service oriented architecture and virtualization. Prior to co-founding Zimory, he served as a research scientist at the innovation development laboratory at Deutsche Telekom. Prof. Dr. Gustavo Alonso, CTO and professor at Swiss Federal Institute of Technology Zurich (ETH), brings extensive experience in databases, enterprise application integration, transaction processing, data replication and middleware platforms.

Strategic Market Position

Planned Investment, Shareholders/Investors

Zimory’s _Carrier Grade_ Cloud product suite delivers a secure, fully flexible, scalable and interoperable, end-toend solution for private, public, hybrid and database cloud. Zimory’s IaaS cloud management software is a strong complement to CloudFactory’s capabilities. Its user friendly, self-service portal enables customers to rapidly deploy and manage solutions for service providers, development

Funding round scheduled for Q2/2012. Investor Creathor Venture is personal referral.

Business Field

Deutsches Eigenkapitalforum 2011 Page 169

Service

Deutsche Börse Listing Partner www.deutsche-boerse.com > Listing > Listing Partner ACON Actienbank AG

Entry Standard for corporate bonds, China Expert

Contact Person E-mail Phone Web

Marco Bodewein [email protected] +49-(0) 89-24 41 18 335 www.aconbank.de

Allen & Overy LLP Contact Person E-mail Phone Web

Entry Standard for shares, China, Russia & CIS Expert

Dr. Oliver Seiler, Okko-Hendrik Behrends [email protected] [email protected] +49-(0) 69-26 48 50 00 www.allenovery.com

Ashurst LLP

Entry Standard for corporate bonds, China, Russia & CIS Expert

Reinhard Eyring, Matthias von Oppen [email protected] [email protected] +49-(0) 69-97 11 27 08, +49-(0) 69-97 11 28 32 www.ashurst.com

Bankhaus Main AG Contact Person E-mail Phone Web

Bayerische Landesbank Entry Standard for shares Expert

Phone Web

Phone Web

China Expert Pauline Sim [email protected] +65-(0) 6319 4999

Baader Bank Entry Standard for shares, Entry Standard Aktiengesellschaft for corporate bonds Expert Contact Person E-mail Phone Web

Nico Baader [email protected] +49-(0) 89-51 50 0 www.baaderbank.de

Bank am Bellevue Contact Person E-mail Phone Web

Bankhaus Lampe KG

Entry Standard for shares Friedrich Dietz [email protected] +41-(0) 44-267-7262 www.bellevue.ch

Russia & CIS Expert

Contact Person Ludger Meckenstock, Dr. Carsten Lehmann E-mail [email protected] [email protected] Phone +49-(0) 2 11-49 52-6 33, +49-(0) 69-33 99 51-0 Web www.bankhaus-lampe.de

Page 170

Deutsches Eigenkapitalforum 2011

Entry Standard for shares, Entry Standard for corporate bonds, China, Russia & CIS Expert

Contact Person Ralf Hellfritsch, Peter Sang E-mail [email protected], [email protected] Phone +49-(0) 69-719 18 38-32, -11 Web www.bankm.de, www.biw-bankm.de

Contact Person E-mail

Contact Person E-mail Phone

Rainer Bergmann, Klaus Armbrust [email protected] [email protected] +49-(0) 69-59 76 76-105, -106 www.bankhaus-main.com

BankM – Representative Office of biw Bank for Investments and Wertpapiere AG

Contact Person E-mail

Asiasons WFG Financial

Russia & CIS Expert

Alf Niezold, Helmut Steinhauser [email protected], [email protected] +49-(0) 89-21 71-2 76-31, -27 www.bayernlb.de

BDO AG Entry Standard for shares Wirtschaftsprüfungsgesellschaft and China Expert Contact Person E-mail Phone Web

Axel Maack [email protected] +49-(0) 30-88 57 22-470 www.bdo.de

BDO AWT GmbH Entry Standard for shares Wirtschaftsprüfungsgesellschaft and China Expert Contact Person E-mail Phone Web

BDO Unicon Contact Person E-mail Phone Web

Manuel Rauchfuss, Günter Wörl [email protected] [email protected] +49-(0) 89-769 06-327, -338 www.bdo-awt.de

Russia & CIS Expert Andrei Baliakin [email protected] +7-(0) 495-797-56-65 www.bdo.ru

Service

Beiten Burkhardt Entry Standard for shares, Business Wire - A Berkshire Hathaway Company Rechtsanwaltsgesellschaft mbH Entry Standard for Contact Person Henrik Adelmann corporate bonds and China Expert Contact Person E-mail Phone Web

Dr. Dirk Tuttlies [email protected] +49-69-75 60 95-0 www.bblaw.com

BERENBERG BANK Joh. Berenberg, Gossler & Co. KG

Entry Standard for shares, Entry Standard for coporate bonds Expert

Contact Person E-mail Phone Web

Oliver Diehl [email protected] +49-(0) 69-913 090-730 www.berenberg.de

BHF - BANK AG Contact Person E-mail Phone Web

Cornelius Clotten [email protected] +49-(0) 69-71 82 572 www.bhf-bank.com

BLÄTTCHEN & PARTNER AG

Entry Standard for shares, Entry Standard for corporate bonds Expert

Contact Person E-mail Phone Web

Dr. Konrad Bösl, Peter Thilo Hasler [email protected], [email protected] +49-(0) 89 210294 60 www.blaettchen.de

E-mail Phone Web

[email protected] +49-(0) 69-91 50 66-35 www.businesswire.de, www.businesswire.com

CdC Capital GmbH

Entry Standard for shares, Entry Standard for corporate bonds Expert

Contact Person E-mail Phone Web

Jörn J. Follmer, Alexander Schwaab [email protected], [email protected] +49-(0) 89-480 580 6-0 www.cdc-capital.com, www.trust-research.com

Citigate Dewe Rogerson GmbH Contact Person E-mail

Entry Standard for shares, China, Russia & CIS Expert

Hanning Kempe, Ilka Schwarz [email protected], [email protected] +49-(0) 69-90 50 0-0 www.citigatedr.de, www.citigatedr.co.uk

Phone Web

Clifford Chance

Contact Person E-mail Phone Web

Entry Standard for shares, Entry Standard for corporate bonds, China, Russia & CIS Expert Markus Pfüller [email protected] +49-(0) 69-71 99-01 www.cliffordchance.com

BLÄTTCHEN FINANCIAL Entry Standard for shares, ADVISORY Entry Standard for corporate bonds Expert Close Brothers Entry Standard for shares, Entry Contact Person Prof. Dr. Wolfgang Blättchen, Seydler Bank AG Standard for corporate bonds Expert

Phone Web

Dr. Stephan Mahn [email protected], [email protected] +49-(0) 7152-610 194-0 www.blaettchen-fa.de

BNP Paribas

Entry Standard for shares Expert

Contact Person E-mail Phone Web

Lars Stiewe [email protected] +44-(0) 207-5 95 20 84 www.bnpparibas.com

E-mail

BRUNSWICK GROUP Contact Person E-mail Phone Web

China Expert Christian Weyand, Gundolf Moritz [email protected], [email protected] +49-(0) 69-24 00 55-11, -62 www.brunswickgroup.com

Contact Person E-mail Phone Web

Thomas Kaufmann [email protected] 49-(0) 69-9 20 54-1 90 www.cbseydler.com

CMS Hasche Sigle

Entry Standard for shares, China, India, Russia & CIS Expert

Contact Person E-mail Phone Web

Dr. Andreas Zanner andreas.zanner@cms-hs-com +49-(0) 69-71 70 10 www.cms-hs.com

Cometis AG

Entry Standard for shares, Entry Standard for corporate bonds, China, Russia & CIS Expert

Contact Person Michael Diegelmann, Henryk Deter E-mail [email protected], [email protected] Phone +49-(0) 611-20 58 55-0 Web www.cometis.de

Deutsches Eigenkapitalforum 2011 Page 171

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Commerzbank AG

Entry Standard for shares Expert

Contact Person E-mail Phone Web

Ute Gerbaulet [email protected] +49-(0) 69-136-2 29 74 www.commerzbank.com

DGAP Deutsche Gesellschaft für Ad-hoc-Publizität mbH Contact Person E-mail Phone Web

Entry Standard for shares Expert Robert Wirth [email protected] +49-(0) 89-21 02-1 98 40 www.dgap.de

Computershare Deutschland GmbH & Co. KG Contact Person E-mail Phone Web

Steffen Herfurth [email protected] +49-(0) 89 - 30 90 3 - 0 www.computershare.de

Concord Capital Ltd.

Entry Standard for shares, Entry Standard for corporate bonds Expert

Contact Person E-mail Phone Web

Mathias Schmid, Veith Hamper [email protected] [email protected] +49-(0) 69-271 38 79-18, -12 www.concordcapital.de

Conmit Wertpapierhandelsbank AG Contact Person E-mail Phone Web

Entry Standard for shares Expert

Christoph Weideneder [email protected] +49-(0) 89-244 047 361 www.conmitbank.de

Cortent Kommunikation AG Contact Person E-mail Phone Web

Contact Person E-mail

Svenja Weber, Andra John [email protected] [email protected] +49-(0) 40-3 02 17-53 37, -55 66 www.donner-reuschel.de

Phone Web

DZ BANK AG

Entry Standard for shares Expert

Contact Person E-mail Phone Web

Andreas John [email protected] +49-(0) 69-74 47 01 www.dzbank.de

Ebner Stolz Mönning Bachem

Entry Standard for shares Expert

Contact Person E-mail Phone Web

Christian Fuchs, Jan Maertins [email protected] [email protected] +49-(0) 711-20 49-12 76, +49-(0) 40-3 70 97-1 47 www.ebnerstolz.de

Russia & CIS Expert Volker Siegert [email protected] +49-(0) 69-5 77 03 00-61 www.cortent.de

Deloitte & Touche GmbH

China, Russia & CIS Expert

Contact Person E-mail Phone Web

Daniel Döpfner [email protected] +49-(0) 69-7 56 95-64 33 www.deloitte.de

Deutsche Bank AG

Donner & Reuschel AG

China, Russia & CIS Expert

Contact Person Georg Hansel, Theodor Hertfelder E-mail [email protected], [email protected] Phone +49-(0) 69-910-3 89 30, -3 88 13 Web www.deutsche-bank.com

equinet Bank AG

Contact Person E-mail Phone Web

Entry Standard for shares, Entry Standard for corporate bonds, India, Russia & CIS Expert

Lutz Weiler, Jobst Müller-Trimbusch [email protected], [email protected] +49-(0) 69-58 99 70 www.equinet-ag.de

EquityStory AG Entry Standard for corporate bonds Expert Contact Person E-mail Phone Web

Robert Wirth [email protected] +49-(0) 89-21 02-1 98 34 www.equitystory.de

Ernst & Young GmbH Entry Standard for shares, WirtschaftsprüfungsEntry Standard for corporate Dewey & LeBoeuf LLP China, India, Russia & CIS Expert gesellschaft bonds, China, Russia & CIS Expert Contact Person E-mail Phone Web

Page 172

Philipp von Ilberg, Joseph Marx [email protected], [email protected] +49-(0) 69-36 39-33 15, -35 60 www.dl.com

Deutsches Eigenkapitalforum 2011

Contact Person E-mail Phone Web

Dr. Martin Steinbach, Daniel Mair [email protected], [email protected] +49-(0) 6196 996-11574, -24703 www.de.ey.com

Service

fischerAppelt, advisors Contact Person E-mail

Entry Standard for shares Expert Ulf Ziegler, Dr. Matthias Larisch [email protected], [email protected] +49-(0) 40-89 96 99 0 www.fischerappelt.de

Phone Web

FTI Consulting

China, Russia & CIS Expert

Contact Person Dr. Lutz Golsch, Markus Breidenstein E-mail [email protected], [email protected] Phone +49-(0) 69-9 20 37-0 Web www.fticonsulting.com

Hogan Lovells

Contact Person E-mail Phone Web

Entry Standard for shares, Entry Standard for corporate bonds, China, India, Russia & CIS Expert Dr. Karsten Müller-Eising, Prof. Dr. Michael Schlitt [email protected], [email protected] 49-(0) 69-962 36-341, -432 www.hoganlovells.com

HSBC Trinkaus Burkhardt AG Contact Person E-mail

Dr. Ralf Neuhaus, Mark Kahlenberg [email protected], [email protected] +49-(0) 2 11-9 10 25 90 www.hsbctrinkaus.de

Goldman, Sachs & Co. oHG China, Russia & CIS Expert Contact Person E-mail Phone Web

Dr. Christoph Stanger [email protected] +44-(0) 20 77 74-47 33 www.goldman-sachs.de

Halter Financial Group

China Expert

Contact Person Jennifer Guan E-mail [email protected] Phone +86-(0) 21-50120990-193 Web www.halter.com.cn, www.halterfinancial.com

Haubrok AG

Entry Standard for shares, Entry Standard for corporate bonds and China Expert

Contact Person Axel Haubrok, Ursula Querette E-mail [email protected], [email protected] Phone +49-(0) 89-210 27-510, -522 Web www.haubrok.de, www.haubrok-ce.de

Entry Standard for shares Expert

Phone Web

ICF Kursmakler AG Contact Person Bernd Gegenheimer, Sascha Rinno E-mail [email protected], [email protected] Phone +49-(0) 69-9 28 77-308, -501 Web www.icfag.de

IKB Deutsche Industriebank AG

Entry Standard for corporate bonds Expert

Contact Person Tilo Kraus, Dr. Jörg Schröder E-mail [email protected], [email protected] Phone +49-(0) 211-8221-3232, 4101 Web www.ikb.de

Independent Research Hauck & Aufhäuser Investment Banking Contact Person E-mail Phone Web

Entry Standard for shares, China Expert Dirk Weyerhäuser [email protected] 49-(0) 69-50 500 49 36 www.ha-ib.com

Contact Person E-mail Phone Web

Pierre Drach [email protected] +49-(0) 69-971 490 0 www.irffm.de

Helaba Landesbank Hessen-Thüringen

IPONTIX Equity Consultants GmbH

Contact Person Albrecht von der Chevallerie, Thorsten Kiwitz E-mail [email protected], [email protected] Phone +49-(0) 69-91 32-41 85 Web www.helaba.de

Contact Person E-mail Phone Web

HEUKING KÜHN LÜER WOJTEK Contact Person E-mail Phone Web

Entry Standard for shares, Entry Standard for corporate bonds Expert

Dr. Mirko Sickinger, LL.M., Dr. Thorsten Kuthe [email protected], [email protected] +49-(0) 221 20 52-591, -746 www.heuking.de

JP Capital Contact Person E-mail Phone Web

Entry Standard for shares Expert

Entry Standard for shares, Entry Standard for corporate bonds, China, Russia & CIS Expert Ulrich Barnickel [email protected] +49-(0) 69-9 54 54-0 www.ipontix.com

China Expert Jane Wang [email protected] +86-(0) 21-61650998 www.jpc-i.com

Deutsches Eigenkapitalforum 2011 Page 173

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JP|KOM GmbH

China Expert

Contact Person E-mail Phone Web

Boris Bolwin [email protected] +49-(90) 69 921019-36 www.jp-kom.de

Landesbank BadenWürttemberg (LBBW) Contact Person E-mail Phone Web

JPMorgan Contact PersonDr. Karl Georg Altenburg, Klaus H. Hessberger E-mail [email protected] Phone +44-(0) 207-3 25 16 49 Web www.jpmorgan.com

Kepler Capital Markets Contact Person E-mail Phone Web

Kirchhoff Consult AG

China, Russia & CIS Expert

Dr. Serge Ragotzky, Andrej Kirschke [email protected], [email protected] +49-(0) 69-756 96-380 www.keplercapitalmarkets.com

Entry Standard for shares, Entry Standard for corporate bonds, China and India Expert

Contact Person Klaus Rainer Kirchhoff, Jens Hecht E-mail [email protected], [email protected] Phone +49-(0) 40-6 09 18 60 Web www.kirchhoff.de

KIT Finance

Russia & CIS Expert

Contact Person E-mail Phone Web

Elnur Kurbanov, Sergey Shlyuger [email protected], [email protected] +7-(0) 495 641 4414 www.kf.ru/eng

KMO – Kestler Mielert & Partner Contact Person E-mail Phone Web

Entry Standard for shares Expert Hubertus Kestler [email protected] +49-(0) 69-97 16 00 www.kmo-legal.de

KPMG Deutsche Entry Standard for shares, Treuhand-Gesellschaft AG China, India, Russia

Entry Standard for shares Expert

Jobst Bartmer, Jan Schwendemann [email protected] [email protected] 49-(0) 711-1 27-250-21,-40 www.lbbw.de

Lang & Schwarz Broker GmbH

Entry Standard for shares Expert

Contact Person Peter Zahn, Marc Evertz E-mail [email protected], [email protected] Phone +49-(0) 211-13 840-410, -893 Web www.ls-d.de

Latham & Watkins LLP

China, Russia & CIS Expert

Contact Person E-mail Phone Web

Dr. Roland Maass, LL.M. [email protected] +49-(0) 69-6062-66-24 www.lw.com

Linklaters LLP Contact Person E-mail Phone Web

Entry Standard for shares China, India, Russia & CIS Expert Dr. Herbert Harrer [email protected], +49-(0) 69-71 00 30 www.linklaters.com

Luther Entry Standard for shares, Rechtsanwaltsgesellschaft Entry Standard for mbH corporate bonds, China and India Expert Contact Person E-mail Phone Web

Thomas Weidlich, Dr. Angelika Yates [email protected], [email protected] +49-221-99 37-1 62 80, -2 57 97 www.luther-lawfirm.com

Mayer Brown LLP Contact Person E-mail Phone Web

China Expert Dr. Ulrike Binder, Patrick C. K. Wong [email protected], [email protected] +49-(0) 69-79 41 0 www.mayerbrown.com

& CIS Expert Contact Person E-mail Phone Web

Michael Salcher [email protected] +49-(0) 89-92 82 12 39 www.kpmg.de/emergingmarkets

Merrill Lynch International Bank Limited Contact Person E-mail Phone Web

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Deutsches Eigenkapitalforum 2011

Russia & CIS Expert

Magnus von Schlieffen, Riccardo Orcel [email protected], [email protected] +49-(0) 69-58 99-50 00, +44-(0) 20-9953203 www.ml.com

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M.M.Warburg & CO KG aA

Entry Standard for shares, China Expert

Contact Person E-mail Phone Web

Till Wrede [email protected] +49-(0) 40-32 82 - 22 98 www.mmwarburg.com

Omiris AG

Entry Standard for shares Expert

Contact Person E-mail Phone Web

Sam Winkel, Robert Zeiss [email protected], [email protected] +49-(0) 89 - 5457 8550 www.consult.omiris.de

Orrick Hölters & Elsing

Entry Standard for shares Expert

Morgan, Lewis & Bockius LLP Contact Person E-mail Phone Web

Dr. Christian O. Zschocke [email protected] +46-(0) 69-71 40 07-11 www.morganlewis.de

Morgan Stanley Bank AG Contact Person E-mail

China Expert

Klaus Froehlich, Mille Cheng [email protected] [email protected] +44-(0) 207-425-23 12 www.morganstanley.com

Phone Web

mwb fairtrade Wertpapierhandelsbank AG Contact Person E-mail

Elke Fürstenau, Herbert Schuster [email protected] [email protected] +49-(0) 89-85852-300, -0 www.mwbfairtrade.com

Phone Web

news aktuell GmbH Contact Person E-mail Phone Web

Noerr LLP

Phone Web

Lars Müller [email protected] +49-(0) 40-41 13-28 59 www.newsaktuell.de

Dr. Laurenz Wieneke, Dr. Tobias Bürgers [email protected], [email protected] 49-(0) 69-9 71 47 70, 49-(0) 89-28 62 80 www.noerr.com

Norton Rose LLP

Contact Person E-mail

PricewaterhouseCoopers

Entry Standard for shares, Entry Standard for corporate bonds, China, Russia & CIS Expert

Contact Person E-mail Phone Web

Christoph Gruss, Nadja Picard [email protected], [email protected] +49-(0) 69-95 85 34 15, +49-(0) 211-981 29 78 www.pwc.de

quirin bank AG

Entry Standard for shares, Entry Standard for corporate bonds Expert

Contact Person E-mail Phone Web

Holger Clemens Hinz [email protected] +49-(0) 69-2475 049-30 www.quirinbank.de

Entry Standard for shares Expert

Entry Standard for shares, Entry Standard for corporate bonds, China, Russia & CIS Expert

Contact Person E-mail

Phone Web

China Expert

Contact Person Dr. Erich Michel, Jens Röhrborn E-mail [email protected], [email protected] Phone +49-(0) 69-71588 0, +49-(0) 89-411 8930-0 Web www.orrick.com

Entry Standard for shares, Entry Standard for corporate bonds, China, India, Russia & CIS Expert

Dr. Frank Peter Regelin, Dr. Sascha Grimm [email protected], [email protected] 49-(0)69-50 50 961-97, -91 www.nortonrose.com

SALANS LLP

Entry Standard for shares, Entry Standard for corporate bonds, China, India, Russia & CIS Expert

Contact Person Robert Michels, Dr. Hermann Meller E-mail [email protected], [email protected] Phone +49-(0) 69-45 00 12-398, +49-(0) 30 2 64 73-405 Web www.salans.com

Shearman & Sterling LLP

China Expert

Contact Person E-mail Phone Web

Dr. Stephan Hutter, Dr. Hans Diekmann [email protected], [email protected] +49-(0) 69-97 11-12 30, +49-(0) 211-17 88 8-818 www.shearman.com

Silvia Quandt & Cie. AG

Entry Standard for shares, China, India, Russia & CIS Expert

Contact Person Robin Huber, Didier Beltai-Menth E-mail [email protected], [email protected] Phone +49-(0) 69-95 92 90 93-04, -08 Web www.silviaquandt.de

Deutsches Eigenkapitalforum 2011 Page 175

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Skillnet GmbH

China Expert

VISCARDI AG

China Expert

Bodo Kräter, Cong Philip Yao [email protected], [email protected] +49-(0) 40-2 80 15 4-0, +86-(0) 21-56654986 www.skillnet.com

Contact Person E-mail Phone Web

Markus Fischer, Dr. Liming Ge [email protected] +49-(0) 89 25 558-0, -127 www.viscardi.com

Contact Person E-mail Phone Web

Warth & Klein Grant Thornton AG Entry Standard for shares, Wirtschaftsprüfungsgesellschaft

Süddeutsche Aktienbank AG

China Expert

Contact Person Hartwig Traber, Lin Liu E-mail [email protected], [email protected] Phone +49-(0) 711-229 315-0, +86-(0) 10 5169 0691 Web www.sab-bank.com

Contact Person Friedrich Graf von Kanitz, Tim Robinson E-mail [email protected], [email protected] Phone +49-(0) 211-9524 8361, +49-(0) 40-4321 862 14 Web www.wkgt.com

WestLB Taylor Wessing Contact Person E-mail Phone Web

China and India Expert

Entry Standard for shares, China, Russia & CIS Expert

Stephan Heinemann [email protected] +49-(0) 69-9 71 30-0 www.taylorwessing.com

Contact Person Christian Fuest, Heiko Trapp E-mail [email protected], [email protected] Phone +49-(0) 211-8 26-8612, -2592 Web www.westlb.de

The Royal Bank of Scotland N.V.

WGZ BANK

Contact Person E-mail

Contact Person E-mail

Klaus Schinkel, Dr. Barbara Böhnlein [email protected], [email protected] +49-(0) 69-2690-0325, -0322 www.rbs.de

Phone Web

UBJ. GmbH

Entry Standard for shares, Entry Standard for corporate bonds Expert

Contact Person E-mail Phone Web

China Expert

Ingo Janssen [email protected] +49-(0) 40 - 6378 5410 www.ubj.de

Phone Web

Entry Standard for shares Expert

Dr. Reiner Selbach, Thomas Aldenrath [email protected], [email protected] +49-(0) 211-7 78-28 81, +49-(0) 211- 778-2887 www.wgzbank.de

Willkie Farr & Gallagher LLP Contact Person E-mail Phone Web

Sven-Erik Heun [email protected] 49-(0) 69-79302-170 www.willkie.com

Wolfgang Steubing AG

Entry Standard for shares, Entry Standard for corporate bonds Expert

UniCredit Bank AG Contact Person E-mail Phone Web

VEM Aktienbank AG

Contact Person E-mail Phone Web

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Peter Schaede [email protected] +49-(0) 89 378-11650 www.unicreditgroup.eu

Entry Standard for shares, Entry Standard for corporate bonds and China Expert Justus Linker, Markus Becker [email protected], [email protected] +49-(0) 89 3 09 03 48-60, -85 www.vem-aktienbank.de

Deutsches Eigenkapitalforum 2011

Contact Person E-mail Phone Web

youmex AG Contact Person E-mail Phone Web

Dr. Jochen Grossmann, Kai Jordan [email protected], [email protected] +49-(0) 69-297 16-168, -112 www.steubing.com

Entry Standard for shares, Entry Standard for corporate bonds and China Expert Andreas Wegerich [email protected] +49-(0) 69-79 53-98-000 www.youmex.de

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Index of Advertisers Advertiser

Page

Baader Bank 21 BankM 25 BDO Wirtschaftsprüfungsgesellschaft 29 Beiten Burkhardt Rechtsanwaltsgesellschaft 67 Bellevue Asset Management 39 BERENBERG BANK Joh. Berenberg, Gossler & Co. 59 Börsen-Zeitung 85 Buse Heberer Fromm 61 Capital Raising 15 Close Brothers Seydler Bank 27 CMS Hasche Sigle 73 DAF Deutsches Anleger Fernsehen 91 Deloitte & Touche 55 Deutsche Börse U4 DZ BANK 37 equinet Bank 45 Ernst & Young Wirtschaftsprüfungsgesellschaft 7 FCF Fox Corporate Finance 35 FINANCIAL GATES 97 finanznachrichten.de 113 GBC Kapital 69, 75 Geschaeftsbericht-Service 77 GoingPublic Magazin 109 Haubrok Investor Relations 51 HSBC Trinkaus & Burkhardt 23 IEG Investment Banking 9 Independent Research 93 International Herald Tribune 89 Istanbul Stock Exchange 31 Jefferies & Company 11 KfW Bankengruppe 19 KPMG 79 Landesbank Baden-Württemberg 49 Luther Rechtsanwaltsgesellschaft 65 mergermarket 83 Michael Konrad 81 Morgan Stanley 17 NZZ 119 PvF Investor Relations 13 quirin bank 41 Renell Wertpapierhandelsbank 57 RölfsPartner 95 SALANS 99 Seker Yatirim Menkul Degerler AS-Seker Securities 71 Silvia Quandt & Cie. 33 STEUBING 101 Taylor Wessing 53 Thomson Reuters 86 UHY Deutschland Wirtschaftsprüfungsgesellschaft 63 VST-VERBUNDSCHALTUNGSTECHNIK 107 WestLB 47 youmex 43

$EUTSCHES¬%IGENKAPITALFORUM w%NTREPRENEURSåMEETåINVESTORSi

Imprint Conference Magazine (Issue No. 2) Publisher: Deutsche Börse AG Mergenthalerallee 61, 65760 Eschborn, Germany www.deutsche-boerse.com/listing [email protected] Tel. +49-(0) 69-2 11-1 88 88 Publishing Partner: GoingPublic Media AG Hofmannstr. 7a, 81379 Munich, Germany www.goingpublic.de, [email protected] Tel. +49-(0) 89-2 00 03 39-0 Project Management: Nicole Koludrovic, Deutsche Börse AG Carola Lübbing-Raukohl, Deutsche Börse AG Editorial: Falko Bozicevic, Maximiliane Worch, Oliver Bönig Editorial assistance: Valentyna Byelkina, Stefan Leisner, Malee Karch, Madeleine Steinbach Authors: Dr. Christa Bähr, Gerhard Bauer, Dr. Anne de Boer, Johannes Borsche, Dr. Martina Ecker, Olivier Elamine, Dr. Gerrit Fey, Dr. Reto Francioni, Kai Frömert, Arno Fuchs, Michael Gallagher, Barbara Georg, Heike Härtl, Steve Kelly, Johannes Koehler, Thomas Körfgen, Dr. Norbert Kuhn, Markus Kurzhals, Maren Lorth, Dr. Lars-Gerrit Lüßmann, Werner Oerter, Christian Orth, Johann Ostermair, Elisabeth Plakinger, Volker Potthoff, Alexander von Preysing, Arndt Rautenberg, Michael Rieß, Frank Schaich, Dr. Dietmar Schieber, Tim Sichting, Hans Richard Schmitz, Dr. Stefan Steib, Christoph F. Vaupel, Christoph Vigelius, Katarin Wagner, Dr. Gebhard Zemke Interviewees: Axel Haubrok, Tilo Kraus, Michael Oppermann, Marc Renell Layout: Andreas Potthoff, Robert Berger Picture editing: Andreas Potthoff Proofreading: Ade Team, Magdalena Lammel Printing: Kastner & Callwey, Forstinning, Germany Reproduction: All rights reserved, © 2011 Deutsche Börse AG, Eschborn, Germany [email protected]

Deutsches Eigenkapitalforum 2011 Page 177

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Financing via Deutsche Börse An overview

Financing via the Figure 1: Market segments at Deutsche Börse – Entrepreneurs have the choice capital market is Regulated Unofficial Market EU-Regulated Market Two ways to access the especially attraccapital market tive to dynamically growing and innoEntry Standard Prime Standard Deutsche Börse vative companies primary market segments: and creates the shares First Quotation Board General Standard basis for a suc(Open Market) cessful future. An Initial Public OfferPrime Standard Deutsche Börse ing (IPO) will primary market segments: enable a company corporate bonds Entry Standard to make largescale financial inSource: Deutsche Börse AG vestments which can be repeated by means of capital increase. This is particularly helpful to ments in order to finance strategic decisions, technical companies who often need to make large advance pay- renewals and ever-shorter product life cycles. It also offers options for succession planning. There are no formal restrictions based on the size of a company or sector for a Figure 2: Phases of an IPO stock exchange listing at Deutsche Börse. Phase 1: Planning and preparation Initial consulting with Deutsche Börse Formation of an IPO team within the company Selection of advisors (e.g. Deutsche Börse Listing Partner) Selection of the syndicate bank Establishment of legal preconditions within the company Phase 2: Structuring Setting of an IPO timetable Preparation of a business plan and an IPO concept Conduct due diligence of relevant business units Preparation of the EU security prospectus Phase 3: Realisation and marketing Preparation of investor relations activities Publishing of EU prospectus Research Application for admission of securities Road show and investor relations activities Bookbuilding Phase 4: Price determination and secondary market Pricing and allocation procedure Initial price auction ® Continuous trading via the Xetra electronic trading system Source: Deutsche Börse AG

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Deutsches Eigenkapitalforum 2011

Equity or debt capital At Deutsche Börse companies can choose from two sources of capital to finance their growth, both will make them independent of financing through banks: they can either issue shares or corporate bonds. They can raise equity capital with an IPO via the stock exchange and they can raise debt capital by issuing corporate bonds. Both forms of financing are suitable for companies of all sizes.

Company-friendly regulatory framework for a successful financing Deutsche Börse offers financing solutions for large companies as well as small and mid caps: tailor-made market segments with a simple admission procedure, wellbalanced rules and regulations as well as low costs. Transparency requirements in the different market segments reconsider also the needs and the capacity of companies. Above all, listing on the stock exchange will give entrepreneurs access to their relevant investors. Not a company’s size, but its quality is the key to a successful

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Figure 3: Phases of bond issuance in the Prime Standard and in the Entry Standard Phase 1: Planning and preparation Initial consulting with Deutsche Börse Formation of an IBO team within the company Selection of advisors (e.g. Deutsche Börse Listing Partner, compulsory in the Entry Standard) Phase 2: Structuring

financing via the stock exchange. Entrepreneurs still will be able to stay in control of their company even after the listing.

Financing with equity capital: going public An IPO is possible within six months An IPO is an important milestone in a company’s history and it often marks a time of increasing growth. During the careful preparation of this important step, entrepreneurs will receive professional support at all times, among others, from banks and advisors from Deutsche Börse’s network of Listing Partner®. This way, they can realise an IPO in Frankfurt within approximately six months. Deutsche Börse has developed a very efficient and cost-effective access to the capital market for a listing in Germany. IPO-Line – all about going and being public at Deutsche Börse the interactive way: www.deutsche-boerse.com/ipo-line

Prime Standard and Entry Standard for corporate bonds Debt capital via stock exchange Exchange listed corporate bonds are a source of debt capital independent of banks. No voting rights are granted when issuing corporate bonds. At Deutsche Börse, corporate bonds

Setting of an IBO timetable Structuring the bond Development of a marketing concept Preparation of the EU prospectus Phase 3: Realisation and marketing Publication of EU prospectus Rating1) Entry Standard: application for inclusion, Prime Standard: application for inclusion or admission Addressing of investors Subscription period Phase 4: Price determination and secondary market Opportunity for subscription via subscription tool of Deutsche Börse Initial price auction Continuous trading via the Xetra electronic trading system 1) Not applicable if shares or certificates representing shares of issuer are already listed within the regulated market of Frankfurter Wertpapierbörse (FWB®, the Frankfurt Stock Exchange) Source: Deutsche Börse AG

are issued in the Prime Standard or in the Entry Standard. The issue of corporate bonds is a quick, easy and cost-effective way open to listed and non-listed companies. Deutsche Börse actively supports companies with the placement of their bonds and ensure that they have access to the network of private and institutional investors and traders, both domestic and international. The issue of bonds is a non-permanent listing. At the end of the term, which has been fixed beforehand, the management can decide whether they want to use this instrument again. Figure 4: Typical data of raising debt capital at Deutsche Börse

Target group Turnover p.a. Issuing volume (debt capital) Terms of bond Coupon Denomination

Entry Standard for Bonds Small & medium sized companies < 300 m€ < 100 m€

Prime Standard for Bonds Medium & larged sized companies > 300 m€ > 100 m€

5-7 years Fixed coupon Max. 1,000 €

5-7 years Fixed coupon, floater 1,000 € fixed

Source: Deutsche Börse AG

Photo: Deutsche Börse AG

Learn more about financing options via Deutsche Börse at: www.deutsche-boerse.com > Listing

Deutsches Eigenkapitalforum 2011 Page 179

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Contact Persons at Deutsche Börse Group

Barbara Georg Head of Listing & Issuer Services Telephone: +49-(0) 69-2 11-1 72 97 E-mail: [email protected]

Alexander von Preysing Head of Issuer Services Telephone: +49-(0) 69-2 11-1 72 71 E-mail: [email protected]

Dr. Albrecht Bürger Russia & CIS | Telephone: +49-(0) 69-2 11-1 58 85 E-mail: [email protected]

Nicole Koludrovic Consumer, Retail, Food & Beverages | SMEs | German Equity Forum | Telephone: +49-(0) 69-2 11-1 26 83 E-mail: [email protected]

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Stefan Höfer Chemicals, Life Science, Basic Resources | Deutsche Börse Listing Partner | Entry & General Standard Conference | Russia & CIS | Telephone: +49-(0) 69-2 11-1 57 03 E-mail: [email protected]

Stefan Leisner Industrial | SMEs | German Equity Forum | Telephone: +49-(0) 69-2 11-1 24 16 E-mail: [email protected]

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Eric Leupold Software | SMEs | Bonds | Telephone: +49-(0) 69-2 11-1 52 45 E-mail: [email protected]

Elisabeth Plakinger Alternative Energies, Green Technology, Utilities | Regulations & Analytics | Telephone: +49-(0) 69-2 11-1 57 52 E-mail: [email protected]

Susanne Plewan Financial Services I India I Telephone: +49-(0) 69-2 11-1 52 71 E-mail: [email protected]

Michael Rieß Automobile, Transportation & Logistics, TMT | SMEs | Bonds | Entry & General Standard Conference | Deutsche Börse Listing Partner | Telephone: +49-(0) 69-2 11-1 49 03 E-mail: [email protected]

Yuxing Ruan China | Telephone: +49-(0) 69-2 11-1 52 32 E-mail: [email protected]

Deutsches Eigenkapitalforum 2011 Page 181

Programme Overview Detailed programme at infocounters Monday, 21 November 2011 Room Plenum Capital Markets Forum

Frankfurt Capital Markets Forum

Berlin Clean Energies Forum

Beijing Sector Forum

08:00 Registration and Business Breakfast 10:00

Welcome Address and Opening Remarks – Dr. Reto Francioni, Deutsche Börse AG; Dr. Ulrich Schröder, KfW Bankengruppe

10:15

Keynote Speech: From Financial Crisis to Sovereign Crisis and Back? – Prof. Dr. Beatrice Weder di Mauro, German Council of Economic Experts

11:00 Are the Markets Still Foreseeable: Impact of the Trading Strategies on Capital Costs Panel discussion hosted by Deutsche Börse AG

Power Grid

12:15 Cooperation with Business Angels and Venture IPO/Equity Transactions in Volatile Markets Capital Funds for the Future of Tech Start Up’s Hosted by LBBW Landesbank Baden-Württemberg Hosted by KfW Bankengruppe

Energy Storage

TOP 50 – Telecommunication / Software & IT 11:00 mitcaps GmbH 11:30 finocom AG 12:00 Breezecom, Inc. 12:30 Jedox AG 13:00 Zimory GmbH

13:15 Lunch Buffet and Exhibition 14:30 Primary Market Activity and the Cost of Going and Being Public – an Update Hosted by Deutsche Börse AG

Dual Track: IPO as an Alternative to Trade Sale?! Hosted by equinet bank AG

E-Mobility

15:00 Capital Markets Orientation and Financing of SMEs Hosted by Deutsche Börse AG 15:30 Coffee Break 16:00 Capital Market Funding: New Perspectives for the German Mittelstand Hosted by IKB Deutsche Industriebank

E-Mobility and German Engineering IPOs in Germany, an Endangered Species? Development of New Approaches in the Future Clean Energies Forum hosted by LBBW Landesbank Baden-Württemberg Hosted by DZ BANK AG

17:15 Financing Alternatives for the Mittelstand Hosted by FCF Fox Corporate Finance

IPO-Stock Exchange Listing of Foreign (Holding) Companies Hosted by Renell Wertpapierhandelsbank AG

Elevator Pitch – Private Equity Investors 18:15 Elevator Pitch of Venture Capital and Private Equity Investors in Rooms Frankfurt and Berlin

TOP 50 – Software & IT / Financial Services 14:30 Atlas Interactive Deutschland GmbH 15:00 van den Berg AG 15:30 Deutsche Revo AG | Bank in Gründung 16:00 Omikron Data Quality GmbH 16:30 Superwise Technologies AG 17:00 evidanza GmbH 17:30 Metasonic AG Presentations end at 18:00

TOP 50 – Clean Energies 17:15 Windreich AG 17:45 NTS Energie- und Transportsysteme GmbH Elevator Pitch – Venture Capital Investors

19:15 End of Forum Program, Please note: Programme of Investors’ Conferences is scheduled from 08:15 until 18:40

Tuesday, 22 November 2011 Plenum Capital Markets Forum

Frankfurt Capital Markets Forum

Berlin Green Tech Forum

Beijing Sector Forum

Investment Opportunities in Lighting 10:00 Introduction 10:45 Current Developments in the Smart Lighting Market 11:30 Innovative Heat and Power Supply in the Smart Home Hosted by Jefferies International

Managing REITs in Challenging Times Hosted by WestLB

08:00 Registration and Business Breakfast 09:00 Entering Capital Markets – The Crucial Factors for Success Hosted by Morgan Stanley 10:00 Financing and Blocktrades with High Net Worth Individuals and Family Offices Hosted by FCF Fox Corporate Finance

Ernst & Young Forum IFRS-Updates and FREP Requirements for IPO Candidates and Listed Companies

Crucial Success Factors in SME Financing 11:15 SPAC vs. IPO: The Way of Exceet Group to Deutsche Börse AG Hosted by Rölfs Partner Hosted by Deutsche Börse AG 12:15 Lunch Buffet and Exhibition 13:45 Emerging Market IPOs: Lessons Learnt Hosted by Berenberg Bank 15:00 The Latest Trends and Developments of the Chinese PE/VC Market 15:20 European Investors’ Exposure to Chinese PE: The Insiders’ Perspective 15:40 European Investors in China - Lagging Behind?

TOP 50 – Green Technology Capital Increases/Equity Funding 2011 – 13:15 Novaled AG Major Trends 13:45 Micropelt GmbH Hosted by LBBW Landesbank Baden-Württemberg 14:15 Concentrator Optics GmbH 14:45 SUNOVA AG The Influence of Proxy Advisors on 15:15 Inventux Technologies AG Resolutions of the Shareholders’ Meeting 15:45 AE Photonics GmbH Hosted by Taylor Wessing

Real Estate & Economy – an Outlook into 2012 Hosted by Silvia Quandt & Cie. AG

TOP 50 – Food & Beverages 13:45 healthy planet 14:15 Platin Delikatessmanufaktur 14:45 froodies GmbH

TOP 50 – Technology 15:15 Armatix GmbH 15:45 VESTOLIT GmbH & Co KG

Hosted by Deutsche Börse AG 16:15 Coffee Break 16:45 China: Momentum Will Pick Up Again Hosted by DZ BANK AG

Delivering Effective Investor Relations: What is Best Practise? Hosted by Thomson Reuters

17:45 Improving MiFID: Now or Never! Back to Transparency in Trading Hosted by Deutsche Börse AG

TOP 50 – Green Technology 16:45 friedola TECH GmbH 17:15 Torqeedo GmbH 17:45 CPM Compact Power Motors GmbH

TOP 50 – Technology / Software & IT 16:45 BIOMETRY.com AG 17:15 MOBILES REPUBLIC 17:45 Aupeo GmbH 18:15 mimoOn GmbH

19:00 Get-Together German Equity Forum 2011 in Palais Frankfurt, Große Eschenheimer Straße 10, 60313 Frankfurt – Shuttle service to the venue will be provided

Wednesday, 23 November 2011 Plenum Bond Forum

Frankfurt Bond Forum

Berlin Bond Forum

Beijing Capital Markets Forum

08:00 Registration and Business Breakfast 09:30 Which Role Should Deutsche Börse Play in the Institutional German Bond Market and How Should it Cater to the Retail Investor? Panel discussion hosted by Deutsche Börse AG 11:00 Capital Increase vs. Mittelstand Bond: Which is the Better Alternative? Hosted by Close Brothers Seydler Bank AG

12:15 Bonds continued! The Market is Growing Up Hosted by Haubrok

Ernst & Young Forum IPO Readiness and Rating Aspects of Bonds for Mittelstand

Bond Investor Relations: Story and Communication Instruments Hosted by PvF Investor Relations

Qualification and Composition of Supervisory Boards Hosted by Deutsche Börse AG/WILD

High Yield Bonds Hosted by Jefferies International

Company Presentations Bond Issuers 12:00 KTG Agrar 12:20 Eyemaxx/Amictus 12:50 BKN Biostrom AG

The Change in the Role of the Supervisory Board: from “Old Boys Network” to “Independent Directors” Hosted by CMS Hasche Sigle

13:15 Lunch Buffet and Exhibition 14:45 Developing Market Standards for Mid Cap Bonds Hosted by IKB Deutsche Industriebank

Company Presentations Bond Issuers Bonds – no Rocket Science: Structuring – Procedure – Placement Alterna- 14:45 K-Bond 1 tives – Financial Communication Hosted by GSK STOCKMANN + KOLLEGEN

16:00 End of Conference, Please note: Programme of Investors’ Conferences is scheduled from 08:15 until 16:30

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Monday, 21 November 2011 Istanbul Life Science Forum

Moscow Sector Forum

Room

Investors’ Conferences / Sector

08:00

London

Madrid

Milan

Media

Financial Services

Software & Internet Consumer | Retail

Industrial

Hosted by DZ BANK AG

Hosted by Silvia Quandt & Cie. AG

Hosted by Close Brothers Hosted by Seydler Bank AG equinet bank AG

Hosted by BERENBERG BANK

10:00 10:15 MedTech: Telemonitoring / Homecare Healthcare Services: Horizontal and Vertical Growth Strategies in Tighter Financial Markets

TOP 50 – Technology / Industrial 11:00 Semi Lev GmbH 11:30 VST Verbundschalungstechnik GmbH 12:00 Maxidor (Pty) Ltd 12:30 JPK Instruments AG 13:00 MCW Oil Sands Recovery LLC

Paris

Zurich

11:00

12:15

13:30 Pharma/Biotech: Lessons Learnt – Set-Backs as an Opportunity

TOP 50 – Technology / Industrial 14:30 Ningbo Strong Magnets 15:00 Henan Snow Bird Enterprise Co., Ltd.

TOP 50 – Life Sience 16:00 RIEMSER Arzneimittel AG 16:30 SANA Kliniken AG 17:00 AMEOS AG

14:30

Infrastructure & Automotive 15:30

Real Estate

16:00

Hosted by Close Brothers Seydler Bank AG Starts at 15:00

Hosted by equinet Bank AG Starts at 13:30

17:15

Life Science Forum hosted by DZ BANK AG 18:15 19:15

Investors’ Conferences from 08:15 until 18:40

Tuesday, 22 November 2011 Istanbul Agro Forum | Turkey Forum

Moscow Sector-/Life Science Forum 08:00

Agro Forum Agro Markets - Resistant or Contagious this Time? Hosted by equinet bank AG

TOP 50 – Food & Beverages 09:30 Curetis AG 10:00 Affimed Therapeutics AG 10:30 Signature Diagnostics AG 11:00 Targos Molecular Pathology GmbH 11:30 REVOTAR Biopahrmaceuticals AG 12:00 ANM Adaptive Neuromodulation GmbH

London

Madrid

Milan

Paris

Industrial

Biotechnology

Consumer & Retail

Aerospace & Defense Clean Energies

Hosted by LBBW

Hosted by DZ BANK

Hosted by equinet bank AG

09:30

14:45 Turkish Markets Appeal to Investors and Companies

TOP 50 – Life Sciences 13:45 ibidi GmbH 14:15 Cytolon AG 14:45 Medicyte GmbH 15:15 Lophius Biosciences GmbH 15:45 SIRION BIOTECH GmbH

Hosted by Istanbul Stock Exchange

Hosted by LBBW

Software – IT-Services

11:15

Hosted by FCF Fox Corporate Finance Starts at 11:15

12:30 Turkey Forum – Opening Remarks & Keynote Address

Zurich

13:45

Chemicals

Technology

Hosted by LBBW Starts at 13:30

Hosted by BERENBERG BANK Starts at 13:30

15:15 15:40

Industrial 16:15 Sector and Company Presentations Turkish listed companies Hosted by Istanbul Stock Exchange

Hosted by LBBW Starts at 15:45

Weak Euro but Order Books at Historical High – 16:45 Do Capital-Goods-Companies Benefit from Crisis? Hosted by BERENBERG BANK

Life Science – Biotech Hosted by FCF Fox Corporate Finance Starts at 18:00

17:45 Please note: Programme of Investors’ Conferences is scheduled from 08:15 until 18:40

19:00

Investors’ Conferences from 08:15 until 18:40

Wednesday, 23 November 2011 London

Madrid

Milan

Paris

Zurich

08:00

Technology

Nanotechnology

Hosted by Close Brothers Hosted by DZ BANK AG Seydler Bank AG

Communication Technologies

Sector Forum Miscellaneous

Green Technology

09:30 11:00

Hosted by Silvia Quandt & Cie. AG

Life Science MedTech 12:00

Hosted by DZ BANK AG Starts at 09:00

13:15 14:45

Financial Services Hosted by Silvia Quandt & Cie. AG Starts at 15:45

16:00

Investors’ Conferences from 08:15 until 16:30

Hosted by Hosted by FCF Fox Corpo- Jefferies International rate Finance

Floorplan Upper Level (C3) Investors‘ Conferences Internet Lounge Coffee Bar

London Madrid Press Lounge

9.01

Milan

Paris

Zurich

Exhibitors‘ Index 7.15 7.08 5.02 2.08 7.11 6.04 1.02 5.06 7.12 1.01 4.05 3.08 8.09 2.06 0.01 2.03 2.02 6.06 6.03 3.01 8.10 0.03 8.08 4.03 2.05 7.03 X.01* 7.05 5.01 3.03

Baader Bank Aktiengesellschaft BankM - Repräsentanz der biw Bank für Investments und Wertpapiere AG BDO AG Wirtschaftsprüfungsgesellschaft Beiten Burkhardt Rechtsanwaltsgesellschaft mbH BHF-BANK Aktiengesellschaft Börsen-Zeitung Buse Heberer Fromm Rechtsanwälte Steuerberater Partnerschaftsgesellschaft CdC Capital GmbH CeWe Color Holding AG Close Brothers Seydler Bank AG CMS Hasche Sigle Creditwest Faktoring Hitzmetleri A.S. DAF Deutsches Anleger Fernsehen AG Deloitte & Touche GmbH Deutsche Börse AG Deutsche Technologie Beteiligungen AG Dipl.-Kfm. Wunderlich & Partner – Wirtschaftsberatung für den Mittelstand GmbH DIRK – Deutscher Investor Relations Verband e.V. DZ BANK AG equinet Bank AG EquityStory AG Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft FAS AG FCF Fox Corporate Finance GmbH fianc GmbH FINANCIAL GATES GmbH Financial Yearbook Global Menkul Degerler A.S. GoingPublic Media AG GSK STOCKMANN + KOLLEGEN Rechtsanwälte Wirtschaftsprüfer Steuerberater

8.01 8.07 6.07 2.07 2.01 8.12 6.01 4.09 8.04 7.04 3.04 0.02 7.02 4.01 4.06 8.03 8.05 7.10 3.07 7.09 8.02 3.06 2.04 6.02 7.07 7.06 5.03 7.01 9.01** 8.00 3.09 8.06

Hessen Agentur GmbH - CIB Frankfurt HEUKING KÜHN LÜER WOJTEK heureka! Profitable Communication GmbH Hogan Lovells International LLP HSBC Trinkaus & Burkhardt AG ICF Kursmakler AG Wertpapierhandelsbank IKB Deutsche Industriebank AG International Herald Tribune IPONTIX Equity Consultants GmbH IS INVESTMENT Istanbul Stock Exchange KfW Bankengruppe Kirchhoff Consult AG LBBW - Landesbank Baden-Württemberg Luther Rechtsanwaltsgesellschaft mbH Menold Bezler Rechtsanwälte Partnerschaft mergermarket MSL Financial news aktuell GmbH NZZ/Swiss Equity magazin PG Alluvial Mining PLC quirin bank AG Renell Wertpapierhandelsbank AG RölfsPartner SALANS LLP Seker Yatirim Menkul Degerler AS-Seker Securities Silvia Quandt & Cie. AG Süddeutsche Aktienbank AG Thomson Reuters TOP 50 Partners Turkish Derivatives Exchange (TSKB) Verhülsdonk und Partner GmbH

* Service level (C0); ** Upper Level (C3)

As of 15. November 2011

Floorplan Main Level (C2) Forums Exhibition One-on-Ones Plenum Beijing Istanbul Internet Lounge

Speaker Lounge

Ice Cream

0.01

Moscow

Coffee Bar

Berlin

0.02

0.03

Frankfurt

1.01

2.01 2.02 2.03

2.05 2.06 2.07 2.04

7.07 7.06 7.05 7.04 7.03 7.02 7.01

1.02

8.02 8.01 8.00

4.01 4.06

8.09 8.08 8.07 8.06 8.05 8.05 8.04 8.03

4.05 4.09

4.03

Bar

6.03 6.02 6.01 6.07 6.06 6.04

7.12

5.06 5.03

7.11 7.10 7.09

5.02 5.01

7.08

3.09 3.08 3.07 3.06 3.03 3.01 3.04

1on1 FACTory

7.15

8.12

8.10

One-on-Ones (D-F)

One-on-Ones (A-C) DVFA

Plenum

< Turn page for Exhibitors‘ Index

TOP50 Lounge

2.08

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