EQS-News Deutsche Beteiligungs AG: Changed macroeconomic conditions shape financial year 2021/2022, positive outlook
EQS-News: Deutsche Beteiligungs AG / Key word(s): Annual Report/Annual Results
Deutsche Beteiligungs AG: Changed macroeconomic conditions shape financial year 2021/2022, positive outlook
- Preliminary net income confirmed
- Net asset value to increase by up to 18 per cent annually, mainly due to portfolio companies implementing their value appreciation strategies
- Earnings from Fund Investment Services in line with expectations, at 15.4 million euros
- Dividend proposal of 0.80 euros per share – return to previous dividend policy in the new financial year
Frankfurt/Main, 1 December 2022. Deutsche Beteiligungs (DBAG) expects the net asset value to rise by between 14 and 18 per cent per annum for the current and the two subsequent financial years. Earnings from Fund Investment Services are expected to decline temporarily, in line with the lifecycle of DBAG funds. Net income is predicted to exceed the long-term average. These figures are derived from the medium-term planning of the listed private equity company, which was published today, together with the Annual Report 2021/2022.
Developments on the capital markets affect the valuation of the portfolio companies, changed macroeconomic conditions burden earnings at some portfolio companies
The financial year 2021/2022 was shaped by external, unexpected influences which significantly affected the original expectations and the valuation of portfolio companies. At the start of the year, it was fair to expect a further recovery in demand (with consumption catching up on postponed spending due to the pandemic) and relief to supply chain bottlenecks. Yet war in Ukraine and rising energy prices dramatically exacerbated inflationary developments which had already been evident beforehand. Central banks responded by raising reference interest rates, thus accepting an economic slowdown. This burdened earnings at some of DBAG’s portfolio companies. Likewise, capital markets multiples declined, affecting the valuation of portfolio companies and leading to a significant negative effect on our portfolio companies in the amount of 150.4 million euros.