PRIVATE EQUITY

Newsletter QUARTERLY SPECIAL | EDITION 2/2017

CLOSED DEALS in H1 2017 within the German-speaking region

NEW DEAL FLOW January - June 2017 in German-speaking region

MOST RECENT STUDIES by Roland Berger Newsletter Quarterly Special | Edition 2/2017 Dear Friends, dear Clients, Dr. Sascha Haghani

We hope that 2017 continues to be successful for you with your current and upcoming deals. Roland Berger’s Investor Support Practice has had the opportunity to support many of you and your teams on numerous attractive transactions and we are looking forward to doing so also in the second half of the year. Christof Huth PE-related deal activity in H1 2017 has been good, amounting to 94 closed deals in the Ger- man-speaking region (up from 53 deals in H1 2016). Also deal flow has been strong, especially in Q1 2017; market participants widely expect this strong deal activity to continue into the second half of the year with an above-average deal flow over the summer months. Deal activity is driven by a combi- nation of favorable financing, a robust economy, and ample dry powder.

From an industry perspective, consumer goods and engineered products had the highest deal activity in H1 2017 with 22% and 21% share of the overall deal flow, respectively. This is followed by Sven Kleindienst IT/Telecoms (13% of deal flow), healthcare (12%) and automotive (12%). Activity in automotive al- most doubled compared to the same period last year, driven amongst others also by the sale of Euro- pean carbon-related assets. In terms of target size, smaller mid-cap deals accounted for the majority of closed deals, but with a stable share of large-cap transactions.

In the political arena, H1 2017 has been characterized by the newly elected US administration, embarking on a more US focused strategy, as well as by important elections in the UK and France, where Mr. Macron won on a largely pro-business agenda. Moreover, Brexit negotiations have been launched with its ultimate impact still not being evident. Despite of the political uncertainty, capital markets have held up well and many economists expect an economic revival in Europe, which PE Jan Felsen markets may also benefit from.

A range of notable studies has been published by Roland Berger: Just to name a few, they address digitalization as an opportunity for the G20 countries (“Digitalization for the people: An agenda for more growth, better education and equal opportunities in the G20 countries”), provide a fresh E-mo- bility perspective (“E-mobility Index Q1 2017”) and look at opportunities in the German distressed M&A market (“Distressed M&A Studie 2017 (German only)”).

Moreover, we are happy to announce that we have expanded our senior team in Investor Support with the appointment of Dr. Thorsten Groth as Principal. Dr. Thorsten Groth

During these eventful but favorable times, Roland Berger’s Investor Support Practice wishes you a good deal flow and successful transactions on which we will be happy to support you.

Yours sincerely

Dr. Gerd Sievers Dr. Sascha Haghani Christof Huth Sven Kleindienst Jan Felsen Dr. Thorsten Groth Dr. Gerd Sievers

2 Roland Berger Private Equity Newsletter Quarterly Special | Edition 2/2017

Increased H1 2017 Closed Deals overall deal The number of closed deals in the first half of 2017 amounted to 94. This was significantly higher activity than the number of closed deals in the first half of 2016 (H1 2016 with 53 deals). However, com- pared to the first quarter of the year (Q1 2017 with 53 deals), the second quarter showed a clearly in H1 2017 lower level of closed deals (Q2 2017 with 41 deals).

The leading deal makers year-to-date are Alpine Capital Partners, Ardian, AUCTUS Capital Part- ners, Bregal Unternehmerkapital and EQT Partners with three acquisitions each. 16 private equity companies further conducted two acquisitions each, including Armira Partners, AURELIUS, Equity Partners, DBAG, EMERAM Capital Partners and KKR.

CLOSED DEALS IN GERMAN-SPEAKING REGION 2001 - H1 2017 # closed PE-relevant deals Source: Roland Berger 168 166 163 161

136

125 122 119 113 110 104 100 94

81 79 74

40 2011 2012 2015 2013 2016 2014 2001 2010 2007 2002 2005 2003 2006 2009 2008 2004 H1 2017

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DEAL FLOW PER MONTH IN GERMAN-SPEAKING REGION Jan - Jun 2017 # deals by status Source: Roland Berger

59

44 43 37 37 12 37

15 27 33 8 19

13 3 6 2

23 19 16 16 14 11

Jan Feb Mar Apr Mai Jun

146 101

Current Rumored Dormant Closed Withdrawn

While the first quarter of 2017 has started with a strong flow of 146 deals in total, the overall deal activity moderately decreased in April to then rise again in May and June. The total number of current, rumored and closed deals for the second quarter amounted to 101 deals, which is above prior year levels. But the number of closed deals in Q2 decreased compared to the record-breaking figure in the first quarter, while the deal flow of current deals remained fairly stable at an elevated level.

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DEAL FLOW PER MONTH IN GERMAN-SPEAKING REGION Jan - Jun 2017 # deals by industry Source: Roland Berger

59 4 3

7 44 43 6 6 4 1 2 37 37 5 4 4 11 1 6 4 1 5 27 8 7 11 5 9 1 5 3 17 1 7 4 11 9 2 5 13 5 1 9 1 3 2 4 1 6 6 6 4 3 4 Jan Feb Mar Apr Mai Jun

146 101

Consumer goods Healthcare Other Chemicals Engineered products Transportation Automotive Energy IT/Telecoms

The following target industries have received particular attention in deal activity recently: Engineered products and consumer goods have shown a high deal activity in the first half of 2017, followed by IT/Telecommunication and Healthcare which remained at the strong level in the first half of the year. Furthermore, Automotive continues to see a high level of deal activity including numerous carbon-related assets. Contrary in Chemicals, very low deal activity has been observed in the last four months.

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DEALS CLOSED IN H1 2017 WITHIN THE GERMAN-SPEAKING REGION

TARGET BUYER TARGET BUYER

ACURA Kliniken Rheinland-Pfalz RAD-x (Gilde Healthcare Partners) Kunze Gruppe PWK Automotive (HANNOVER Finanz) AH Industries AURELIUS Ledvance (Osram carve-out) IDG Capital Partners, MLS and Yiwu Altano Gruppe Ufenau Capital Partners State-Owned Assets Operation Center ANDROMEDA Medizinische Systems Laborie Medical Technologies Maredo Perusa Partners (Investor AB) mgw Service Akiem (Ermewa Group and Deutsche Apostroph Group Wieners+Wieners (ECM Equity Asset Management) Capital Management) Modehaus Schneider AppelrathCuepper (OpCapita) Arlenda PharmaLex (AUCTUS Capital NEC MED PHARMA NORD Holding Partners) Unternehmensbeteiligungsgesellschaft artegic Main Capital Partners NRW Building Technology Bregal Unternehmerkapital ASI DATAMYTE Quality Management Alpina Capital Partners o|con Office Concept Webhelp (KKR) Software Division One Advertising diva-e Digital Value Enterprise (EMERAN Atotech Capital Partners) B2B Media Group EMEA Nordwind Capital Open Systems EQT Partners Barthelmess Fordahl Capital Optimol Instruments Prüftechnik Virthos Partners Bilfinger Scheven DUBAG Deutsche ORTHOPARC ATOS Kliniken (Waterland Private Equity Unternehmensbeteiligungen Investments) Böllinger Group Holding (Automotive TRIGO Group (Ardian) Parallels International (Plesk) Oakley Capital Investments Quality Assurance Services Subsidiary) Peiseler INDUS Holding Chromasens Lakesight Technologies (Ambienta) Poggenpohl Adcuram Cine-Mobil LEO Familienholding PolyCine Armira Partners Colosseum Smile Group Jacobs Holding POOL4TOOL Jaegger (Acel-KKR) CopyQuick Neuenburg Copytrend (Afinum) PPS Imaging NORD Holding DBW Advanced Fiber Technology Group DMB Dr. Dieter Murmann Unternehmensbeteiligungsgesellschaft Beteiligungsgesellschaft Presswerk Krefeld (PWK Automotive) HANNOVER Finanz De Boer Structures Losberger (Gilde Buy Out Partners) Productsup Nordwind Capital Deurotech Produktions PINOVA Capital REIFF Gruppe European Tyres Distribution (Bain Deutsche Intensivpflege Holding Ergon Capital Partners Capital) Duagon DBAG Reutter Steadfast Capital DuoTherm Rolladen BPE Unternehmensbeteiligungen SAFECHEM Europe CBPE Capital EBERTLANG Distribution Beyond Capital Partners Schustermann & Borenstein Permira Advisers EF-Express Flash Europe International (Eurazeo SGB-SMIT Group One Equity Partners PME) SHD Bregal Unternehmerkapital EffiSi HLS Engineering Group (Aheim SLV Ardian Capital and TerVia Invest) Tembit Software Hanse Orga (Waterland Private Equity Embassy Jewel Bregal Unternehmerkapital Investments) F.S.V. Fachbetrieb für AVS Verkehrssicherung (Steadfast The Corner Lampe Privatinvest Management Verkehrseinrichtungen auf Straßen Capital) Utimaco EQT Partners F24 Armira Partners Varicor Silver Investment Partners Felss Group Capvis Equity Partners Virtalis Alpina Capital Partners Fischer surface technologies (carve-out) DPE Deutsche Private Equity Vitronet Projekte DBAG Fit Heaven Let‘s Go Fitness (Afinum) vonRoll itec FERNAO Networks (AUCTUS Capital Fitbudget Let‘s Go Fitness (Afinum) Partners) Formel D 3i WEETECH PINOVA Capital Frostkrone Tiefkühlkost EMERAN Capital Partners Well Plus Trade Vertriebs HQ Equita Gasser Rassuvin Acrotec (Castik Capital) Wer Liefert Was Capvis Equity Partners Gebhardt Instruments Trescal (Ardian) Wex Photographic AURELIUS GEFASOFT Alpina Capital Partners World of Travel Reisebuero Mader Kuoni Reisen (EQT Partners) Gemaco Capiton Xtera Communications H.I.G. Capital globits FERNAO Networks (AUCTUS Capital ZGS Bildung (Schuelehilfe) Oakley Capital Investments Partners) Granit Holding (SCHOCK) IK Investment Partners Hensoldt (fka Airbus Defence KKR Electronics) Holzindustrie Fürst zu Fürstenberg European Wood Products Holding Hulvershorn Eisengiesserei (Flacks Group) Rheinische Mittelstandsbeteiligung IMG Electronic & Power Systems HASEC-Elektronik (bm-t Beteiligungsmanagement Thüringen) inet-logistics Castik Capital Infinigate H.I.G. Capital ISOG Management BayBG Bayerische Beteiligungsgesellschaft and Endurance Capital iT-CUBE SYSTEMS SecureLink (Investcorp) Josef Reis Tempus Capital Karl Reichenbach Lampe Privatinvest Management Karl Schmidt Odewald JMU Gesellschaft für Beteiligungen Kronenbrot Signal Capital Partners

6 Roland Berger Private Equity Newsletter Quarterly Special | Edition 2/2017 Presenting Roland Berger most recent studies

Digitalization for the people: An agenda for more growth, better education and equal opportunities in the G20 countries The debate about digitalization and its consequences has moved center stage in our society. Most actors in the realms of politics, the economy, and the media have now grasped the fundamental upheavals that digitalization brings. It is therefore only logical that a topic of such universal relevance should belong on the agenda of the G20, the central forum for economic cooperation between the leading industrialized and emerging countries. It is important to make a powerful statement in favor of fairness and equity in the design and execution of digitali- zation. Global value chains have improved the lives of people throughout the world, and digitalization undoubtedly harbors still greater growth potential. However, these benefits have so far eluded many people, and many even now look back on a decade of economic stagnation. In Europe and the USA, this has contributed to a resurgence of populist movements that now advocate economic and political isolationism. The IE.F has, in collaboration with Roland Berger, identified the key areas in which a digital G20 agenda must take action. This paper outlines possibilities to shape digitalization in a way that is of benefit to the people and reconciles economic growth, better education and equal opportunities.

E-mobility Index Q1 2017 This study shows a comparison of the competitive positioning of the world’s seven leading automotive nations. The E-mobility ranking is based on three indicators: industry, technology and market. While in terms of technology Germany has moved into the lead position, in industry China has taken over the lead thanks to its higher levels of production and value creation. In terms of the market, all seven leading automotive nations are increasingly on the same level. The supply situation for materials used in the production of lithium-ion batteries remains critical in the medium term, characterized by great dependency on China, Congo, South Korea and Japan. The role of cities is growing with regard to emissions legislation. The issuing of license plates is already linked to the type of drive in many major Chinese cities. In addition, plans to introduce an ultra-low emission zone in 2020, Paris is to ban diesel engines (also from 2020), and Norway is considering banning all internal combustion engines from 2025. The broad focus is on convenience of charging, with fast charging becoming increasingly important for customer acceptance. The E-mobility Index takes this into account by re-weighting the technology index.

Distressed M&A Studie 2017 (German only) The first edition of the Roland Berger distressed M&A study reveals the German market. We provide an overview of key trends and drivers and assess the importance of distressed M&A in the context of restructuring proceedings while defining the role of consultants. In the course of this study, we have surveyed 2,300 experts and decision makers with distinct know-how in distressed M&A transactions. The survey participants forecast a growing distressed M&A market in Germany with an increased competition which is the result of a growing interest from abroad. In 2017, automotive and consumer goods are likely to account for the largest share of distressed cases – similar to the previous year. The majority of distressed M&A occurs in ordinary insolvency proceedings. M&A processes carried out as dual tracks parallel to insolvency plans are strongly encouraged by the survey participants. Distressed M&A consultants play an important role. Going forward, demands on consultants increase due to an increasing complexity of distressed M&A transactions.

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Roland Berger Trend Compendium 2030 – Trend 5: Dynamic technology & innovation The Roland Berger Trend Compendium 2030 is a global trend study compiled by Roland Berger Institute (RBI), the think tank of Roland Berger. It describes the most important megatrends that will shape the world between now and 2030. The megatrends have a broad impact on the environment of companies, strongly influencing challenges and opportunities of their business. The Trend Compendium covers seven megatrends shaping the future development of the world: demographic dynamics, globalization & future markets, scarcity of resources, climate change & ecosystem at risk, dynamic tech- nology & innovation, global knowledge society, and sustainability & global responsibility. This edition covers the fifth mega trends (dynamic technology & innovation) and further investigates its three sub- trends: power of innovation, life sciences, and digital transformation.

Private financing of rolling stock The aim of the study has been to assess the scale of private financing of rolling stock projects in Europe (aggregated European market and major submarkets including Germany, the United Kingdom, France, Switzerland and Austria) fo- cusing on different categories (high speed trains, multiple units, urban systems, locomotives and coaches/wagons). The analysis has been based on c.440 rolling stock projects in the years 2013 to 2015 in 22 countries. Of the average annual market volume of EUR 12.12 bn for Western and Eastern Europe, an aggregate volume of EUR 9.66 bn (80%) has been classified as publicly financed according to the customer’s financial structure. The average market volume per project was approximately EUR 83 m. The study finds that private financing accounts for c.20% (EUR 2.46 bn) of total market volume, whereas 35% of all projects are supported by private financing either fully or partially in Joint Ventures.

B2B benchmarking: consumer electronics retailer example The Roland Berger consumer electronics B2B benchmark study has analyzed 21 consumer electronics retailers with a B2B program (17 from the DACH region). It finds that in consumer electronics retail the B2B market is hardly developed. Many retailers do not offer a systematic program for business customers. The race to claim the first-mover advantage has -al ready begun. Aside from traditional retailers, online pure players and manufacturers play an important role. Providers of good B2B programs make use of the opportunities of digitization to transfer B2C standards such as a broad offering or pricing transparency to B2B. To better utilize the B2B potential, so far inactive retailers need to create service and customer oriented B2B programs, while manufacturers can use existing platforms. This study finds that successful consumer electronics B2B approaches rely on six key characteristics: Smooth customer journey, comprehensive offering, network with partners, B2B organiza- tion & marketing, lock-in effect.

For further information, questions or remarks please contact:

ROLAND BERGER GMBH Investor Support, Sederanger 1, 80538 Munich, Germany Lejla Kalajevac, Phone +49 89 9230-8250, Fax +49 89 5485-8250, [email protected]

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