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Original-Research: Deutsche Beteiligungs AG - from NuWays AG

25.08.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to Deutsche Beteiligungs AG

Company Name: Deutsche Beteiligungs AG
ISIN: DE000A1TNUT7

Reason for the research: Update
Recommendation: Buy
from: 25.08.2025
Target price: EUR 39.00
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr

In H1 2025, DBAG's NAV fell to EUR 627m, prompting a cut in the year-end
forecast to EUR 625-665m (old: EUR 665-780m). The NAV per share is now expected
between EUR 35 and EUR 38, lower than the earlier range of EUR 36 to EUR 43. Note,
hitting the upper end would require two successful exits, challenging during
times of increased operational uncertainties. Although DBAG's portfolio
recorded a EUR 34m valuation uplift as two portfolio companies benefitted from
higher peer valuations, lower operational performances and outlooks
partially offset those gains, leading to a net change in value of only EUR
20m. Consequently, net income of investment activity decreased notably from
EUR 36.6m to EUR 14.7m.

On the acquisitions side, DBAG made a long-term investment by acquiring a
minority stake in fin-match, a financing platform for small and mid-sized
businesses, which could also serve as a sourcing channel for Private Debt
investments going forward. Within the portfolio, congatec acquired JUMPtec,
a former Kontron subsidiary, effectively doubling market share across Europe
& North America.

Private Debt running well. As part of the partnership with ELF Capital, DBAG
has invested EUR 83m across four transactions (three in H1 2025), effectively
allocating funds raised through the issuance of a convertible bond in 2024
(EUR 100m at 5.5% p.a.). With the current funds nearing closing (once fully
invested), income from Fund Services related to ELF Funds should reach some
EUR 2.5m (eNuW). In light of the success of ELF and the current high demand
for Private Debt, we would also expect a fourth fund to be launched.

Income from Fund Services came in slightly below last year's H1 at EUR 24m
(H1: -1.3%; Q2: -4.9%) due to lower AUM/AUA. Segment EBITA declined by EUR
1.8m yoy to EUR 7.1m due to less income from advisory services (EUR 0.3m) but
also higher personnel expenses. Yet, management raised its FY25 segment
EBITA guidance to EUR 10-15m (old: EUR 8-13m, eNuW: EUR 13m) as a result of less
expected divestments and hence higher AUM.

Shareholder value focused capital allocation. At the end of Q1, management
initiated a new oneyear buy-back program with an aggregated volume of EUR 20m,
of which some EUR 6.5m have been deployed. Gradually buying in the market
should not only support the share price but also lift NAV per share, one of
the the company's three guidance metrics. This coupled with a base dividend
of at least EUR 1.00 per share/p.a. DBAG offers an attractive return profile,
even during times with lower investment activity income.

Amid a slower transaction market and weaker operating performance in parts
of DBAG's industrial portfolio, investment income is expected to be
temporarily lower, with NAV development lagging behind initial expectations.
Yet, the sustainability of income from Fund Services coupled with attractive
shareholder returns meanwhile provide more than sufficient grounds for a BUY
rating. PT of EUR 39 is based on SOTP (DCF for Fund Services + discount to our
NAV per share estimate at year-end).

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=edd79fccfb5c101bf204e427976c36b6
For additional information visit our website:
https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2187842 25.08.2025 CET/CEST

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