M&A Report HDAX 110 Activity and Focus 2005–2014

M&A Report HDAX 110 Activity and Focus 2005–2014 2 Contents

5 Objective and Key Observations

6 Overview

12 Sector Analysis – Basic Materials

16 Sector Analysis – Consumer Goods

20 Sector Analysis – Consumer Services

24 Sector Analysis – Finance, Real Estate and Insurance

28 Sector Analysis – Industrials

32 Sector Analysis – Information Technology

36 Sector Analysis – Pharma & Healthcare

40 Sector Analysis – Telecommunications

44 Sector Analysis – Utilities

48 Appendix 1 – Methodology

49 Appendix 2 – HDAX composition and transactions

52 Appendix 3 – HDAX transactions per region and sector

54 About Deloitte

56 Glossary of Terms

58 Contacts

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 3 4 Objective and Key Observations

Report objective The most active sector is Financial Services • The objective of this report is to provide the reader • The Finance, Insurance and Real Estate (FSI) sector with insights into historical transaction activity by the reported the highest transaction levels; however, 110 companies included in HDAX as at 30 September since the majority of transactions were in real estate, 2014. no direct comparison with M&A activity in other • The report gives a summary of HDAX as a whole, as sectors can be made. well as an analysis of deals at the level of the nine • While the Pharma & Healthcare and IT sectors had a “supersectors” defined by Deutsche Börse AG. clear focus on acquisitions, disposal activity was par- • The analysis covers activity trends and focus areas for ticularly high within the regulated Telecommunications different transaction types, key dealmakers and key and Utilities sectors. regions. • The analysis is based on the number of M&A transactions, acquisitions and disposals with a stake >25%, undertaken by these companies in the period from January 2005 to September 2014.

Overall year-on-year activity was particularly low in 2009 and 2013 • The peak in 2007 was followed by a sharp decline in Recently, M&A activity among overall activity in subsequent years. • The lowest activity levels occurred in 2009 and 2013. HDAX companies has been • Overall activity picked up in the twelve months to Sep- tember 2014. • The fourth quarter tends to be the most active. increasing as a result of higher

Activity has shifted from acquisitions to disposals disposal activity. • Historically, transaction activity was mainly driven by acquisitions. • In recent years, there has been a trend towards higher disposal activity.

The regional focus is on European and North American companies • While 69% of overall transaction targets were located in Europe, 17% were based in North America and only 6% in BRICS countries.

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 5 Overview | HDAX Summary

Chart 6 (Pie)

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2 Composition Fig. 1 – HDAX – Composition2% by DAX Type and Sector • The HDAX combines the 110 companies listed on DAX, (Number of companies / 30Sep14) MDAX and TecDAX. • As at 30 September 2014, the Industrials Sector, which consists of 21 companies, is the most dominant sector DAX 5 11 TecDAX within the HDAX by total number of companies, fol- 30 30 lowed by the Information Technology Sector with 18 16 10 companies and the Pharma & Healthcare Sector with 16 companies. 110 12 18 Transaction Type and Regional Focus • In the period under review, acquisitions clearly outweighed disposals with 3,260 versus 2,671. 21 15 • The key regional focus was the German market, followed by the rest of Europe. North America was the primary driver within the remainder of the world, while MDAX activity within BRICS countries was comparatively low. 50 • On a net basis, i.e. acquisitions less disposals, activity shows a shift away from Germany (158 net disposals) Basic ChartMaterials 6 (Pie) Consumer Goods Consumer Services to other European (410 net acquisitions) as well as to Utilities Industrials Telecommunication Finance, Insurance and Real Estate other regions (337 net acquisitions). Pharma & Healthcare Information Technology InformationTecDAX TechnologyFinance, Insurance and Real Estate Pharma & Healthcare MDAX Industrials TelecommunicationsConsumer Services Utilities Year-on-Year Activity DAX Consumer Goods Basic Materials • Overall activity peaked in 2007, with acquisition activity Data < 5% is not labeled on the charts. significantly outweighing disposals. • A recovery in overall activity could be observed in 2010 Fig. 2 – HDAX – Transaction Type and Regional Focus and 2011, although it was driven by a higher amount (Number of transactions / Jan05 – Sep14) of disposals. • With a trough in acquisitions, activity slowed in 2013 and has experienced a period of recovery still characterized by a high level of disposals. Disposals 746 819 Acquisitions 2,671 3,260

Fig. 3 – HDAX – YoY Activity 948 Chart(Number 3 (Line) of transactions) 5,931 1,358 800

700 977

600 1,083

500

400

300 Acquisitions Germany Acquisitions Rest of Europe (excl. Russia) Acquisitions Other regions Disposals Germany 200 Disposals Rest of Europe (excl. Russia) Disposals Other regions 100 RoW EUR 0 GER Acquisitions RoWDisposals Disposals EURAcquisitions (100) GER 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Acquisitions Disposals Net acquisitions Total activity 6 Net acquisitions

Total activity

Disposals

Acquisitions Overview | HDAX Transaction Type and Index Activity

Activity Overview Fig.HDAX 4 – Activity HDAX – Overview Activity Overview • The total amount of transactions peaked in 2007, (NumberNumber of transactions) of transactions mainly driven by acquisitions. This level could not be 800 745 713 Net acquisitions reached again in the research period. 626 633 616 617 543 563 • Total transactions in the last twelve months (from Sep- 600 508 506 453 Total Transactions p.a 398 tember 2013 to September 2014) were 24% lower 367 358 400 319 Total transactions 288 304 305 278 than in 2007. However, total activity increased by 11% 161 256 200 108 Acquisitions in LTM14 compared to 2013. 83 83 68 67 21 6 Disposals • The activity level was very low in 2009 and 2013. 0 While in 2009 the amount of both acquisitions and (8) (7) disposals decreased as a result of the financial crisis, 200 220 238 250 259 292 275 298 285 the dip in activity in 2013 was driven by the lower 400 315 312 volume of acquisitions. • In 2007, acquisitions accounted for 61% of total 600 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 transactions, but since 2010, the number of disposals has been roughly equal to acquisitions. Acquisitions Disposals Total transactions Net acquisitions Average transactions p.a.

Activity by Index • DAX companies conducted 64% of total transactions in the research period, followed by MDAX companies (29%). The share of transactions carried out by TecDAX companies (7%) was comparatively low and focused on Information Technology and Pharma & Healthcare. • Total disposals activity by DAX companies slightly exceeded their acquisition activity. M&A activity among MDAX and TecDAX companies was generally driven by

acquisitions, with 64% and 74% of total transactions 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Acquisitions respectively. • The increase in acquisitions in 2007 was primarily driven2005 by 2006MDAX2007 companies.2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Fig.HDAX 5 – HDAXActivity – Activityby Index by Index (Number of transactions) Number of transactions 462 454 500 436 DAX MDAX TecDAX 500 410 393 Acquisitions 354 371 400 400 330 320 348 230 300 300 205 205 237 243 180 177 181 171 200 234 215 145 117 147 185 200 166 163 168 167 45 46 61 43 37 46 41 44 100 137 149 125 128 32 39 94 110 108 116 95 100 76 87 0 36 39 43 33 27 30 28 32 34 21 (100) 0 Disposals 9 7 18 10 10 16 13 11 7 10 (200) 51 41 100 80 63 70 69 77 65 60 76 (300) 200 169 162 199 195 183 199 (400) 228 211 227 208 300 (500)

400 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Acquisitions Disposals Total transactions Net acquisitions Net acquisitions

2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 M&A Report – HDAX 110 Activity and Focus 2005 – 2014 7 Overview | HDAX Top Players

Fig. 6 – HDAX – Most Active Companies Most Active Companies (Number and % share of transactions) • The most active company in the HDAX was Deutsche Focus of Transactions in Europe Bank AG, which accounted for 11% of total transac- Acquisitions 237 234 243 215 185 166 163 168 137 140149 tions settled by HDAX companies from January 2005 100% to SeptemberOther 2014. Deutsche Bank AG was also par- 80% 50 ticularly activeEON SE in the last twelve months, conducting 60 58 61 62 52 53 54 58 63 BASF SE 60% 80 transactions. This exceeds the average of 67 trans- Allianz SE 40% actions per year. 14 12 14 Simens AG 22 10 22 • Siemens AG accounted for 7% of all transactions con- 20% 12 10 11 14 Deutsche Bank 21 11 12 12 13 11 19 18 14 14 ducted in the observation period. On average, Siemens 0 14 14 AG settled 41 transactions per year, however, in the 18 20 18 23 24 25 25 25 20% 10 last twelve months, only 29 transactions were identi- 12 13 17 15 12 12 Other 40% 11 10 fied, most of which were disposals (23). EON SE 12 • Allianz SE, BASF SE and E.ON SE followed with 5%, 60% BASF SE 56 55 53 51 49 48 49 4% and 3% of total activity respectively. The activity at 80% 45 43 40 Allianz SE BASF SE decreased in the last twelve months com- Simens AG 100% pared to the average level, mainly due to a lower 199 228 211 195 169 227 208 162 183 199 Deutsche Bank Disposals number of acquisitions. E.ON SE conducted more dis- 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 posals as a result of changes in the political environ-

Deutsche Bank AG – in % Siemens AG – in % Allianz SE – in % BASF SE – in % ment and regulation in Germany. E.ON SE – in % Other – in %

Data < 10% is not labeled within the charts.

Fig. 7 – HDAX – Most Active Companies (Number of transactions)

2005 – LTM14 Total LTM activity comparison1 A D Total share A D Total DEUTSCHE BANK AG 257 393 650 11% 5 8 13 SIEMENS AG 177 224 401 7% (12) 0 (12) ALLIANZ SE 167 126 293 5% 4 (1) 3 BASF SE 100 119 219 4% (6) (0) (6) E.ON SE 89 115 204 3% (3) 11 8 Remaining companies 2,470 1,694 4,164 70% (42) (7) (49) Total Transactions 3,260 2,671 5,931 100% 55 11 (44)

Notes: 1 Transactions in LTM14 less the average of yearly transactions from 2005 – LTM14

8 Overview | HDAX Regional Activity & Focus

HDAX Focus of Transactions by Region Acquisitions

Regional Focus Fig.500 8 – Activity by Region 453 • HDAX M&A activity was predominantly focused on (Number of transactions) HDAX Focus of Transactions398 by Region 400 Germany and other European countries with 30% and Acquisitions367 358 39% of total activity respectively, followed by North 89 319 500 288 304 305 300 76 453 278 America representing 17% of total activity. 88 60 256 56 Remaining countries 398 43 44 54 • Within Europe, HDAX companies carried out a signifi- 200400 367 183 53 179 358 BRICS cant number of M&A transactions in the UK, especially 152 89 152 135319 136 132 117305 100 101 300 76 288 304 278 North America in the FSI and Industrial sectors. UK transactions ac- 100 88 60 256 Remaining countries 112 56 counted for 21% of all activity in Europe excluding 78 87 82 6843 4486 83 5482 79 83 Rest of World excl. Russia 200 183 53 0 179 BRICS Germany and Russia, followed by France (14%). 152 152 135 Germany 13685 132 11785 10084 101 • Outside of Europe, North America was by far the most 102 101 112 97 103 122 110 North America 100 112 79 73 important region for HDAX companies' M&A transac- 8078 87 82 68 86 83 82 9079 83 Rest of World excl. Russia 132 107 103 123 96 0 95 48 tions. 200 52 50 85 85 84 47 Germany • The amount of acquisitions of companies outside Eu- 102 101 112 97 220 10349 122 110 54 238 250 100 259 275 rope was noticeably low in 2013, primarily driven by a 300 292 79 73 90 285 80 312 298 315132 107 103 123 96 low number of acquisitions in North America. 95 48 400200 52 50 47 • However, a higher number of acquisitions of North 220 49 54 238 250 259 275 American companies was observed in the last twelve 500300 292 285 312 298 Remaining countries months, which indicates that North America remains 315 Disposals the most important region for M&A transactions for 400 BRICS 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 HDAX companies outside of Europe. 500 North America Germany Rest of Europe (excl. Russia) North America BRICS Remaining countries Remaining countries • M&A transactions with companies from BRICS countries Rest of World excl. Russia amounted to only 6%, relative to total transactions. Disposals BRICS Data < 40 is2005 not labeled2006 within the2007 charts. 2008 2009 2010 2011 2012 201320122011201020092008200720062005 2013 LTM14LTM14 Germany • While being volatile, transactions related to companies North America from BRICS countries did not increase significantly Fig. 9 – HDAX – Activity by Region Rest of World excl. Russia during the research period. (Number and % share of transactions) 201320122011201020092008200720062005 LTM14 HDAX - Activity by Region Germany Acquisitions 367 398 453 358 288 304 319 305 256 278 100% Remaining Countries 80% 15 14 BRICS 24 19 20 17 18 18 13 19 North America 60% 43 39 45 40 42 47 42 38 36 Rest of Europe (excl. Russia) 40% 41 Germany 20% 28 31 30 21 22 25 23 24 26 27 0

20% 39 32 38 35 39 33 41 36 34 39 Remaining Countries 40% 39 31 36 BRICS 60% 31 42 37 37 36 32 34 North America 80% 11 11 20 Rest of Europe (excl. Russia) 20 17 12 13 16 20 16 Germany 100% 11 10 259 315 292 275 220 312 298 238 250 285 Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Germany – in % Rest of Europe (excl. Russia) – in % North America – in % BRICS – in % Remaining countries – in %

Data < 10% is not labeled within the charts.

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 9 Overview | HDAX Sector Activity

Fig. 10 – HDAX Industry Acquisition and Disposal Focus Sector Acquisition Focus (Number and % share of transactions) HDAX Sector Activity and Focus • Deutsche Börse AG segments the member companies Acquisitions into nine “supersectors”. This classification is applied 367 398 453 358 288 304 319 305 256 278 to the sector analysis in this report. 100% 6 8 8 5 • HDAX M&AU tactivitiesilities were highest in the Finance, In- 10 6 10 12 12 12 13 surance and Real Estate sectors. While general M&A 15 15 13 5 8 12 8 8 80% 9 9 acquisition Tactivityelecomm decreasedunication from 2005 to LTM14, 10 6 7 7 24 the M&A activity in this sector increased considerably. 21 19 12 23 19 Pharma & Healthcare 21 M&A activity within this sector is characterized by real 60% 23 20 25 estate property transactions and therefore does not Information Technology 20 23 30 compare directly to M&A activity in other sectors. 17 28 21 40% 18 30 • The share of M&A acquisition activity by Industrials de- 14 23 Industrials 11 17 11 12 creased significantly. Total M&A acquisition activity in 7 9 11 8 12 LTM14 in this sector fell to a share of 12% compared 20% 8 8 11 10 9 Finance, Insurance and Real Estate 9 8 6 10 10 5 to 25% in 2005. 13 13 9 11 6 10 10 11 7 9 Consumer Services 0 12 9 7 11 6 9 Sector Disposal Focus 16 14 13 14 5 8 • Disposal activityConsu mewasr G highestoods in the Finance, Insurance 8 9 6 12 10 8 8 13 9 7 20% 6 and Real Estate sectors with a share of 31% of total Basic Materials 8 8 disposals in the last twelve months. Similar to acquisi- 34 36 31 33 tion activity, disposal activity in this sector is not entirely 40% 29 26 22 30 31 26 comparable to M&A activity. • Industrials accounted for 25% of total disposals in the 60% 24 24 25 last twelve months. In contrast to acquisition activity 21 20 21 22 23 23 27 in this sector, the respective disposal activity increased 5 compared to 2005. 80% 5 6 5 5 8 7 5 11 7 5 6 5 • In recent years, a significant increase in disposal activity 5 6 7 8 5 11 12 6 6 6 8 5 in the Utilities sector can be observed. Total disposals 100% 5 5 5 259 315 292 275 220 312 298 238 250 285 more than doubled compared to 2005, primarily as a Disposals result of the changes in regulation related to the re- 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 duction of energy from nuclear power plants and the Basic Materials – in % Consumer Goods – in % Consumer Services – in % focus on alternative energies. Finance, Insurance and Real Estate – in % Industrials – in % Information Technology – in % • Further net disposal sectors were the FSI and the Tele- Pharma & Healthcare – in % Telecommunications – in % Utilities – in % communications sectors.

Data < 5% is not labeled within the charts.

10 Overview | HDAX Seasonality

Seasonality • On average, there is less transaction activity in the • The transaction activity of HDAX companies shows high first half of the year than the second. volatility from quarter to quarter. • The last quarter tends to be the strongest. • The two lowest levels of activity were reported in the second quarters of 2009 and 2013. • The amount of transactions conducted by HDAX companies increased considerably in the third quarter of 2014. Chart 1 (Mixed)

Fig. 11 – HDAX – Activity by Transaction Type (Number of transactions) # of transactions

250

200

150

100

100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Acquisitions Disposals Total transactions Net acquisitions

Chart 3 (Line)

Fig. 12 – HDAX – Total Transactions Seasonality Index (Number of transactions) # of transactions

180

160 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3

140 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3

120 Acquisitions Total transactions 50

100

80 Q1 Q2 Q3 Q4

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Average

Durchschnitt M&A Report – HDAX 110 Activity and Focus 2005 – 2014 11 2014

2013

2012

2011

2010

2009

2008

2007 Sector Analysis | Basic Materials Summary

Constituents Chemicals,Chart Commodity: 6 (Pie) BASF SE, Fuchs Petrolub SE, Lanxess AG • Companies involved in the discovery, development Steel & Other Metals: Salzgitter AG, Thyssenkrupp AG and processing of basic materials make up this sector. Chemicals, Specialty: Evonik Industries AG, K+S AG, Symrise AG, Wacker Chemie AG Regional Focus Oil & Gas: Linde AG • 60% of all transactions between January 2005 and Mining: Aurubis AG September 2014 were settled with European companies, of which 26% in Germany. With 21% and 9% Fig. 13 – Basic Materials – Constituents respectively, North American companies and compa- (Number of companies / 30Sep14) nies located in the BRICS countries played a major role for HDAX M&A activity in this sector. • On a net acquisition basis, companies in this sector 1 shifted their investments from Germany (-61) to other European countries (37) and other regions (56). 1 3

Activity 5 • M&A activity decreased in the overall period under re- 11 view mainly due to a reduced amount of transactions 6 settled by DAX companies. The companies in the sub- 4 2 sectors Commodity Chemicals, Steel & Other, and Spe- Chart 6 (Pie) cialty Chemicals were most active. • However, in the last six months, total transactions increased significantly.

• In total (January 2005 – September 2014), 624 transac- DAX MDAX Chemicals, Commodity Steel & Other Metals tions were settled, 328 acquisitions and 296 disposals. Chemicals, Specialty Oil & Gas Mining On a net acquisition basis, total acquisitions slightly outweighed disposals at 32 transactions. Fig. 14 – Basic Materials – Transaction Type and Regional Focus Mining (Number Oil of & Gas transactions / Jan05 – Sep14) Chemicals, Specialty SteelMDAX & Other Metals Chemicals,DAX Commodity Fig. 15 – Basic Materials – YoY Activity Chart(Number 3 (Line) of transactions) Disposals 98 51 Acquisitions 100 296 328

80 86 624 123

112 40 154

Acquisitions Germany Acquisitions Rest of Europe (excl. Russia) 0 Acquisitions Other regions Disposals Germany Disposals Rest of Europe (excl. Russia) Disposals Other regions (20) 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 RoW EUR

GER Acquisitions Acquisitions Disposals Net acquisitions Total activity RoWDisposals Disposals EURAcquisitions GER Total activity Net Transactions

12 Disposals

Acquisitions Sector Analysis | Basic Materials Transaction Type and Index Activity

Activity Overview • For MDAX constituents, the number of yearly trans- • Total M&A activity in this sector decreased by 41% actions was relatively stable during the observation during our research period over the three main sub- period. However, 2009 and 2013 showed a signifi- sectors Commodity Chemicals, Steel & Other, and Spe- cant reduction of activity across all companies, and cialty Chemicals. The number of acquisitions as well as on absolute transaction terms in 2009, mainly driven the number of disposals fell to a similar extent. by Evonik Industries AG. • In the last twelve months (from September 2013 to September 2014), M&A activity increased. This was Fig.HDAX 16 Activity– Basic MaterialsOverview – Activity Overview primarily due to an increase in acquisitions at Evonik (Number of transactions) Industries AG and Linde AG. The significant increase in Number of transactions disposals resulted from higher activity at Evonik Indus- 100 88 87 83 Net acquisitions tries AG and BASF SE. 80 73 57 60 • Nevertheless, total transactions of 51 in LTM14 were 60 48 52 51 46 50 still below the historical average of 63 transactions 43 34 Total transactions p.a. 40 38 34 29 31 p.a. in 2005 – LTM14. 24 12 18 19 Acquisitions 20 5 10 8 • 42% of all transactions in this sector were related to 3 3 1 4 Disposals the subsector Commodity Chemicals, 25% to Steel 0 3 and Other Metals and 19% to Specialty Chemicals. 20 15 12 21 30 28 26 27 40 35 Activity By Index 41 38 40 60 • The historical decline in activity was attributable to DAX 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 companies (mainly BASF SE SE, ThyssenKrupp AG and Linde AG) whose activity level nearly halved over the Acquisitions Disposals Total transactions Net acquisitions Average transactions p.a. Acquisitions review period. This development was mainly driven by a reduction in the yearly amount of acquisitions and

disposals.2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

HDAXFig. 17 Activity – Basic byMaterials Index Activity by Index (Number of transactions) 100 Number of transactions 80 70 69 69 DAX MDAX TecDAX 80 63 60 Acquisitions 60 54 47 60 50 41 43 40 44 36 33 40 37 28 40 31 20 28 18 19 20 19 16 30 24 14 13 18 20 19 20 7 6 20 14 14 13 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 9 12 10 10 11 10 11 0 10 6 4 5 0 (20) 1 Disposals 3 4 5 3 10 9 8 9 7 (40) 14 13 20 16 20 23 (60) 30 25 26 27 24 32 32 40 (80) 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Acquisitions Disposals Total transactions Net acquisitions

Net acquisitions

2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 13

70 60 Sector Analysis | Basic Materials Top Players and Deals

Fig. 18 – Basic Materials – Most Active Companies Most Active Companies (Number and % share of transactions) Focus of Transactions in Europe • The two most active companies in the observation pe- Acquisitions riod were BASF SE and ThyssenKrupp AG, reflecting 46 50 43 38 18 29 31 34 19 24 100% 57% of total deal activity in the basic materials sector Other 26 28 and showing 219 and 135 transactions respectively. 80% THYSSENKRUPP AG 44 53 56 56 47 • Linde AG and Evonik Industries AG accounted for 13% 66 68 71 BASF SE 60% 33 28 and 12% of total transactions in this sector, with 80 40% 26 13 12 22 37 and 74 transactions respectively. 20% 41 44 19 13 • Considering a total of 624 transactions over the pe- 30 34 28 32 22 13 16 17 riod, net acquisitions of 32 were comparatively low 0 18 over all periods, and this value does not indicate 28 20% 32 40 43 44 46 53 whether this sector expanded through acquisitions or 24 10 60 62 Other 40% focused on core business through disposals. 32 THYSSENKRUPP AG 20 19 60% 25 29 • The amount of transactions settled in the observation 63 27 BASF SE 58 20 23 80% 40 period decreased by 50% for BASF SE and 71% for 37 29 29 37 20 15 20 ThyssenKrupp AG in the last twelve months of 2014, 100% 41 38 40 35 30 29 21 26 15 27 compared to 2005. Disposals • The importance of these companies with respect to 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 the amount of acquisitions in this sector has decreased BASF SE – in % ThyssenKrupp AG – in % Other – in % since 2005: BASF SE and ThyssenKrupp AG accounted for 74% of all sector acquisitions in 2005, and reduced Data < 10% is not labeled within the charts. to 30% in the last twelve months. • LTM14 was lower than the historical average of 63 Fig. 19 – Basic Materials - Most Active Companies p.a. by 12 transactions, mainly due to a decrease in (Number of transactions) acquisitions by BASF SE and ThyssenKrupp AG. LTM14

2005 – LTM14 Total LTM activity comparison1 acquisitions of 24 were below disposals at 27, which A D Total share A D Total runs counter to the historical average, where usually, acquisitions were higher than disposals. BASF SE 100 119 219 35% (6) (0) (6) THYSSENKRUPP AG 70 65 135 22% (4) (2) (6) Top Disclosed Transactions LINDE AG 46 34 80 13% 1 (2) (1) • Recent major acquisitions were disclosed by Linde AG EVONIK INDUSTRIES AG 29 45 74 12% 1 2 4 and Symrise AG, whereas ThyssenKrupp AG and BASF LANXESS AG 20 14 34 5% (2) 1 (1) SE disclosed major divestitures. Remaining companies 63 19 82 13% 1 (2) (1) Total Transactions 328 296 624 100% (9) (3) (12)

Notes: 1 Transactions in LTM14 less the average of yearly transactions from 2005-LTM14

Fig. 20 – Basic Materials – Top Disclosed Recent Transactions (last three periods)

Year Type Buyer/Seller Target Region Value (€bn)

2012 A LINDE AG Lincare Holdings Inc. North America 3.5 2013 A THYSSENKRUPP AG ThyssenKrupp Acciai Speciali Terni S.p.A. and Germany 1.3 Outokumpu VDM GmbH 2014 A SYMRISE AG DIANA S.A.S. Europe 1.3

2012 D THYSSENKRUPP AG Inoxum GmbH Germany 3.1

2014 D BASF SE Styrolution Group GmbH Germany 1.9

2013 D THYSSENKRUPP AG ThyssenKrupp Steel USA, LLC North America 1.1

14 Sector Analysis | Basic Materials Regional Activity and Focus

Regional Focus Fig. 21 – Basic Materials - Activity by Region (Number of transactions) • Transactions in Germany were dominated by disposals HDAX Focus of Transactions by Region in this sector. Acquisitions • Only 16% of all acquisitions related to Germany. This 60 is below the HDAX average of 25%. 50 • Total net acquisitions (acquisitions minus disposals) 46 6 43 over the period under review indicate a shift from Ger- 40 7 8 6 38 34 many (61 net disposals) to other regions (56 net ac- 6 7 29 31 Remaining countries 12 13 5 quisitions) and to other European countries (37 net 11 24 8 12 19 BRICS acquisitions). This leads to the conclusion that constit- 20 24 18 11 14 6 18 North America uents of the basic materials sector were diversifying 14 10 14 5 7 14 5 5 their assets to markets outside of Germany. 10 Europe 5 6 6 6 5 6 8 • The number of yearly transactions outside of Europe 0 5 Germany 14 8 7 10 11 11 decreased by 39% in the last twelve months com- 14 12 7 21 8 12 pared to 2005. 7 10 8 9 15 20 11 6 6 • In YTD14, more than half of the disposals were related 5 21 5 8 7 to the commodity chemicals subsector. 14 8 26 27 8 30 28 (81) • Acquisitions YTD14 also showed the highest number 6 8 35 40 38 of transactions in the field of Commodity Chemicals, 41 40 but there were also significant activities in the Steel and Other Metals and Oil & Gas subsectors. 60 • From January 2005 to September 2014, most transac- Remaining countries tions in the rest of Europe (i.e. outside of Germany) Disposals BRICS 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 occurred in the UK and France, totalling 45 and 25 North America respectively. In the UK, total transaction activity was Germany Rest of Europe (excl. Russia) North America BRICS Remaining countries Europe mainly driven by BASF SE, ThyssenKrupp AG and Linde Data < 5 is not labeled within the charts. AG, whereas in France BASF SE and Symrise AG were Germany the most active players. • With regard to non-European transactions, M&A ac- Fig. 22 – Basic Materials - Activity by Region (Number2005 and % share2006 of transactions)2007 2008 2009 2010 2011 2012 2013 LTM14 tivity was highest in North America (21% of all trans- Basic Materials Focus of Transactions by Region actions in this sector from January 2005 to September Acquisitions 46 50 43 38 18 29 31 34 19 24 2014), mainly influenced by BASF SE, ThyssenKrupp 100% 12 14 18 14 10 12 16 13 Remaining countries AG and Linde AG. 15 17 80% 16 14 10 BRICS 13 39 32 26 26 17 25 North America 60% 26 21 39 26 21 Rest of World 40% 56 30 48 32 41 Germany 36 37 33 20% 32 33 22 19 10 14 11 10 15 0 27 25 20% 37 35 34 33 41 51 48 42 Remaining countries 40% 27 20 26 43 BRICS 29 14 27 60% 47 37 34 20 14 20 North America 14 19 80% 21 23 Rest of World 23 10 19 15 20 23 14 Germany 100% 11 10 13 41 38 40 35 30 28 21 26 15 27 Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Germany – in % Rest of Europe (excl. Russia) – in % North America – in % BRICS – in % Remaining countries – in %

Data < 10% is not labeled within the charts.

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 15 Sector Analysis | Consumer Goods Summary

Constituents Automobile Manufacturers: Volkswagen AG, Daimler AG, BMW AG • This sector is composed of companies that relate to Chart 6 (Pie) Auto Parts & Equipment: Continental AG, Leoni AG, Elringklinger AG goods purchased primarily by consumers. This includes Household Appliances: Henkel AG & CO KGaA companies involved in food production, clothing, bev- Food: Suedzucker AG erages, and the automobile subsector. Personal Products: Beiersdorf AG

Regional Focus Leisure Goods & Services: TUI AG • The Consumer Goods sector is a net acquisition sector as there were 44 more acquisitions than disposals. Of Fig. 23 – Consumer Goods – Constituents all transactions, 31% were conducted with German (Number of companies / 30Sep14) targets. Other European firms accounted for 42% of all transactions. • Outside of Europe, M&A activity was highest in North 1 America (13% of all transactions in the observation period) and the BRICS countries (8%). 1 3 • On a net acquisition basis, companies in this sector 4 shifted their investments from Germany (-18) to other 1 10 European countries (44) and BRICs (14).

Activity 1 6 • Volkswagen AG, Daimler AG and Continental AG, all re- 3 lated to the automotive sector, accounted for 57% of Chart 6 (Pie) total transactions. • The increase in M&A activity in LTM 2014 was mainly due to increased acquisition activity by DAX companies. Leisure Goods & Services DAX Personal MDAX Products Automobile Manufacturers Food Auto PartsHousehold & Appliances Equipment Household Appliances Food Auto Parts & Equipment Fig. 25 – Consumer Goods – YoY Activity PersonalAutomobile Products Manufacturers Leisure Goods & Services Chart(Number 3 (Line) of transactions)

Fig. 24 – Consumer Goods – Transaction Type and Regional Focus 100 (Number ofHDAX transactions / Jan05 – Sep14) DAX

Disposals 63 71 Acquisitions 60 238 282

40 86

520 130 20

89 0 81

(20) 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Total activity AcquisitionsRoW Germany Acquisitions Rest of Europe (excl. Russia) EUR AcquisitionsNet acquisitions Disposals Net acquisitions Total activity GER AcquisitionsRoW Other regions Disposals Germany EUR Disposals Disposals Rest of Europe (excl. Russia) Disposals Other regions

Acquisitions

Disposals Acquisitions

16 Sector Analysis | Consumer Goods Activity

Activity Overview Activity By Index • In this sector, there was a general decline of M&A ac- • Consumer goods is mainly influenced by the Automobile tivity. The strongest year-on-year decline was identified Manufacturers and Auto Parts & Equipment subsectors, in 2013, where the total number of acquisitions fell by and within these by DAX members Volkswagen AG, 64% compared to 2012. The corresponding amount Daimler AG and Continental AG. of disposals declined by 41%. • The acquisition activity of DAX companies explains the • 70% of total transactions were related to the Automo- activity increase in the last twelve months. bile subsector. In YTD14, activity was mainly driven by • M&A activity by MDAX companies reached a low in transactions in this subsector. The respective share in- 2013/2014. creased to 86%. • The downturn was predominantly due to a sharp decline of acquisitions and a reduction in disposals re- Fig.HDAX 26 Activity– Consumer Overview Goods – Activity Overview (Number of transactions) lated to German companies, and mainly stemmed Number of transactions from lower activity in the subsectors Automobile 100 Net acquisitions Manufacturers and Auto Parts & Equipment. 77 80 71 • Total transactions in LTM14 of 36 fell below the total 57 56 60 51 55 historical average of 52. 48 45 40 36 Total transactions p.a. • The increase in M&A activity in 2011 was mainly 40 30 33 30 32 33 25 28 26 19 Acquisitions driven by Volkswagen AG acquisitions. 20 9 8 8 11 12 16 3 3 Disposals 1 • There was an increase in M&A activity in the last 0 twelve months due to a higher level of acquisitions 20 5 7 13 10 21 20 22 also in the subsectors Automobile Manufacturers and 27 26 24 40 Auto Parts & Equipment, led by Volkswagen AG, 38 37 Total Transactions Daimler AG and Continental AG. 60 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 Acquisitions2008 2009 2010 Disposals2011 2012 2013 TotalLTM14 transactions2005 2006 Net2007 acquisitions2008 2009 2010 Average2011 2012 transactions2013 LTM14 p.a.

Fig.Consumer 27 – Consumer Goods Activity Goods by – ActivityIndex by Index (Number of transactions) Number of transactions

70 DAX MDAX TecDAX 80 60 51 53 60 50 40 40 43 43 100 36 33 32 40 40 21 80 20 24 26 26 15 17 13 30 23 24 8 12 12 20 19 21 6021 4 4 20 16 17 14 11 10 11 0 10 7 7 8 8 7 40 2 4 0 (20) 20 4 3 1 4 2 10 7 5 5 (40) 11 10 13 20 17 17 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 19 22 19 (60) 30 25 24 30 40 (80) 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Acquisitions Disposals Total transactions Net acquisitions

2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 17

70 60 Sector Analysis | Consumer Goods Top Players and Deals

Fig. 28 – Consumer Goods - Most Active Companies Most Active Companies (Number and % share of transactions) Consumer Goods Most Active Companies • During the period under observation, Volkswagen AG Acquisitions and Daimler AG were the most active players in this 30 33 40 30 28 19 32 33 12 26 100% sector, accounting for 25% and 17% of total transactions respectively.Other 80% 43 41 DAIMLER AG 55 • Volkswagen AG conducted 132 transactions in this 70 70 70 68 62 VOLKSWAGEN AG VZ 60% 77 83 period. Acquisitions outweighed disposals by 18 trans- 29 40% 15 actions. 50 20% 12 15 • Acquisition activity at Volkswagen AG increased in the 23 29 32 30 31 18 15 20 17 last twelve months accounting for 10 transactions, of 0 14 16 19 19 20 23 20 these 8 were acquisitions. 20% 43 38 33 15 27 • Daimler AG conducted 88 transactions. Most of these 29 24 30 Other 40% 17 31 40 transactions were disposals (65%). 15 DAIMLER AG 60% 24 • Continental AG and TUI AG accounted for 15% and 67 VOLKSWAGEN AG VZ 55 57 59 80% 50 46 50 46 12% of total transactions in this sector, with 80 and 33 40 62 transactions respectively. 100% 21 38 37 27 20 26 24 22 13 10 • LTM14 was lower by 16 transactions than the histor- Disposals ical average of 52 p.a., mainly due to a decrease in 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 disposals for the main companies Volkswagen AG, TUI Volkswagen AG VZ – in % Daimler AG – in % Other – in % AG, Daimler AG and Continental AG. Acquisitions LTM14 of 26 were generally above disposals at 10, Data < 10% is not labeled within the charts. in line with the historical trend.

Fig. 29 – Consumer Goods – Most Active Companies Top Disclosed Transactions (Number of transactions) • In 2014, Volkswagen AG closed the top recent acquisition. The Scania AB takeover had a transaction value of 2005 – LTM14 LTM activity comparison1 Total €6.65bn. share A D Total A D Total • Volkswagen AG, TUI AG and Daimler AG were involved Volkswagen AG VZ 75 57 132 25% 1 (4) (3) in the top disclosed transactions. The focus of major Daimler AG 31 57 88 17% (1) (2) (3) deals was on European (incl. German) companies. Continental AG 55 25 80 15% 3 (2) 2 TUI AG 34 28 62 12% (1) (3) (4) Henkel AG & CO KGaA 17 32 49 9% 1 (0) 1 Remaining companies 70 39 109 21% (5) (4) (9) Total Transactions 282 238 520 100% (2) (14) (16)

Notes: 1 Transactions in LTM14 less the average of yearly transactions from 2005-LTM14

Fig. 30 – Consumer Goods - Top Disclosed Recent Transactions (last three periods)

Year Type Buyer/Seller Target Region Value (€bn)

2014 A VOLKSWAGEN AG VZ Scania AB (publ) (OM:SCV B) Europe 6.65

2012 A VOLKSWAGEN AG VZ Dr. Ing. h.c. F. Porsche AG Germany 4.46

2014 A TUI AG TUI Travel PLC (LSE:TT.) Europe 2.41

2014 D DAIMLER AG Rolls-Royce Power Systems AG Germany 2.43

2012 D TUI AG Hapag-Lloyd AG Germany 0.48

2013 D VOLKSWAGEN AG VZ HR Owen plc Europe 0.07

18 Sector Analysis | Consumer Goods Regional Activity and Focus

Regional Focus Fig. 31 – Consumer Goods – Activity by Region (Number of transactions) • Activity was concentrated on the Rest of Europe (217 Consumer Goods Focus of Transactions by Region transactions), Germany (160 transactions) and North Acquisitions America (67 transactions). 60 • Net transactions showed higher disposals in Germany (-18), with more and acquisitions in other European 40 countries (44) and BRICs (14). 40 33 6 33 • Acquisition activity among German companies ceased 30 30 32 Rest 28 5 26 in 2013 after a historical average of eight acquisitions 10 5 19 5 BRICS per year from 2005 to 2012. German companies' dis- 20 14 14 12 17 14 14 128 posal activity more than halved, from an average of 15 13 North America 11 ten to four disposals in 2013. 9 8 8 8 11 12 7 7 Europe 0 • M&A activity related to the Rest of Europe and North 5 10 9 8 11 7 Germany America decreased notably in 2013. 14 17 6 7 6 7 14 10 • In the last twelve months, the total number of acquisi- 12 7 13 7 20 12 tions increased by 14. This development was mainly 21 13 20 24 22 driven by a higher amount of acquisitions by European 7 27 26 companies including Germany. 40 37 • Disposal activity further decreased in the last twelve 38 months. • Transactions related to the Automobile subsectors ex- 60 ceeded 50% in all regions. This value was highest in Rest Disposals Germany (68%), and lowest in BRICS (56%) and the BRICS 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 remaining countries (51%). North America • French and British targets were most frequently in- Germany Rest of Europe (excl. Russia) North America BRICS Remaining countries Europe volved in M&A transactions with 32 and 30 transac- Data < 5 is not labeled within the charts. tions respectively, mostly in the automotive industry. Germany • Transactions within North America accounted for 13% Fig. 32 – Consumer Goods – Activity by Region of all transactions from January 2005 to September 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 (Number and % share of transactions) 2014. The respective share of transactions related to Consumer Goods Focus of Transactions by Region BRICS countries amounted to 8%. Most of these Acquisitions 30 33 40 30 28 19 32 33 12 26 transactions were acquisitions. 100% 10 15 11 16 Rest 10 17 16 19 80% 12 BRICS 10 25 25 13 North America 60% 50 44 42 40 52 58 50 Europe 40% 35 50 58 Germany 20% 34 36 30 24 29 27 20 13 21 0 19 20% 37 33 40 32 31 48 46 46 40 Rest 40% 54 32 20 BRICS 60% 32 44 35 46 29 35 29 North America 20 80% 18 15 32 Europe 19 11 10 17 23 20 Germany 100% 11 10 21 38 37 27 20 26 24 22 13 10 Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Germany – in % Rest of Europe (excl. Russia) – in % North America – in % BRICS – in % Remaining countries – in %

Data < 10% is not labeled within the charts.

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 19 Sector Analysis | Consumer Services Summary

Constituents Publishing & Printing: A.Springer SE VNA • This sector comprises companies operating in the Chart 6 (Pie) Broadcasting: Prosiebensat.1 Media AG, RTL Group SA, media and retail industries. SKY Deutschland AG, Kabel Deutschland Holding AG Retail, Multiline: Brenntag AG, Kloeckner & Co SE, Metro AG, Regional Focus Fielmann AG O.N. • The number of acquisitions in this sector exceeded the Retail, Specialty: Adidas AG, Gerry Weber Int.AG, Hugo Boss AG number of disposals with respect to companies in all regions by 198. • The peak in 2007 was primarily the result of a significant Fig. 33 – Consumer Services – Constituents increase in acquisitions by German companies, driven (Number of companies / 30Sep14) by the build-up of A. Springer SE’s German mail order business. 1 • On a net acquisition basis (acquisitions minus disposals), 1 the Rest of Europe showed the highest activity (101), 3 followed by North America (39) and Germany (36).

Activity 12 4 • Between 2005 and 2007, the activity level in this industry had a sharp increase, driven by acquisitions mainly by A. Springer SE. Thereafter the number of transactions in this sector stabilised in a range be- Chart 6 (Pie) 4 tween 40 and 60 transactions per year. 11 • The number of acquisitions exceeded the number of disposals in all years covered in the report. DAX MDAX Publishing & Printing Broadcasting Retail, Multiline Retail, Specialty Fig. 35 – Consumer Services – YoY Activity Retail, Specialty Chart(Number 3 (Line) of transactions) Retail, Multiline Fig. 34 –Broadcasting Consumer Services – Transaction Type and Regional Focus Publishing & Printing (Number of transactions / Jan05 – Sep14) 100

80 18 DisposalsHDAX Acquisitions DAX 61 151 107 349 60

40 72 500

20 157 85 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Acquisitions Disposals Net acquisitions Total activity Total activity Acquisitions Germany Acquisitions Rest of Europe (excl. Russia) Acquisitions Other regions Disposals Germany Net acquisitions Disposals Rest of Europe (excl. Russia) Disposals Other regions RoW Disposals EUR GER RoW EUR Acquisitions GER

Disposals 20 Acquisitions Sector Analysis | Consumer Services Transaction Type and Index Activity

Activity Overview Activity By Index • Following a peak in 2007, led by A. Springer SE, • Due to the composition of the sector, development is Kloeckner & Co SE and Kabel Deutschland Holding almost entirely affected by MDAX companies, im- AG, activity dropped and stayed roughly at the same pacted predominantly by A. Springer SE. Various com- level of between 40 and 58 transactions p.a. in subse- panies with less market activity than ProSiebenSat1 quent periods. Media AG, RTL Group SA, Brenntag AG, Kloeckner & • 34% of total transactions in this sector were related to Co SE and Metro AG account for the remaining major Publishing & Printing, 31% to broadcasting, while the part of transactions. remaining 35% stemmed from Multiline and Speciality • M&A activity at Adidas AG, the only DAX company in Retail activities. this sector, was relatively limited with a maximum of 4 • The decline in 2008 and 2009 was attributable to a transactions in one year. drop in the amount of acquisitions, driven largely by A. Springer SE and Kloeckner & Co SE. The increase in Fig.Consumer 36 – Consumer Services ActivityServices Overview– Activity Overview 2010 was due to an increase in activity by ProSie- (Number of transactions) Number of transactions benSat1 Media AG. 100 • The number of acquisitions, however, still exceeded 86 Net acquisitions the number of disposals in each year covered in the 80 76 58 56 55 55 report. 60 46 48 66 40 42 • In the last twelve months, a general increase in trans- 34 43 Total transactions p.aa 40 33 36 35 34 33 26 actions can be identified, mainly led by a higher 24 22 Acquisitions 20 30 24 number of acquisitions and disposals by A. Springer 20 Disposals 14 11 14 10 11 SE, representing the broadcasting subsector. This is in 0 10 10 11 line with overall HDAX development. 20 13 14 16 22 18 22 22 40 Total Transactions 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Consumer Services Activity by Index Fig. 37Number – Consumer of transactions Services – Activity by Index (Number of transactions) 85

70 DAX MDAX TecDAX 80 75 60 53 57 52 55 60 50 44 47 42 40 36 40 100 31 36 40 31 33 33 33 30 23 26 20 4 4 80 20 20 3 1 2 1 2 1 0 10 60 2 1 3 1 2 2 2 1 0 40 (20) 2 1 2 1 10 8 (40) 20 12 10 11 20 16 14 16 22 21 22 (60) 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 (80)

Acquisitions Disposals Total transactions Net acquisitions

2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 21

70 60 Sector Analysis | Consumer Services Top Players and Deals

Fig. 38 – Consumer Services - Most Active Companies Most Active Companies (Number and % share of transactions) Consumer Services Most Active Companies • With 172 transactions, Axel Springer SE conducted Acquisitions 34% of all transactions in this sector during the re- 24 43 76 33 22 36 35 34 26 33 100% search period. Other • The second most-active company was ProSiebenSat.1 80% 44 43 42 38 38 42 PROSIEBENSAT.1 MEDIA AG 58 Media AG which was responsible for 14% of all trans- 63 68 A.SPRINGER SE VNA 60% 74 11 15 12 actions in this sector. 14 18 29 40% • RTL Group SA and Brenntag AG each accounted for 17 19 42 46 39 46 45 12% of total transactions, followed by Kloeckner & Co 20% 32 32 21 22 23 SE and Metro AG with 9% each. 0 10 • Transactions at Axel Springer SE were focused on Eu- 23 27 29 31 20% 40 36 36 30 44 36 ropean companies. Other 40% • M&A activity at ProSiebenSat.1 Media AG and RTL 38 PROSIEBENSAT.1 MEDIA AG 60% 36 Group SA was volatile throughout the observation pe- 77 68 A.SPRINGER SE VNA 60 60 55 55 64 80% 50 riod. 31 27 • The activity level during LTM14 of 55 transactions was 100% 10 13 10 22 18 22 11 14 16 22 in line with the historical average of 52. Acquisitions Disposals were slightly below historical average by 3, whereas 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 disposals were slightly above the historical average by A. Springer SE VNA – in % ProsiebenSat.1 AG – in % Other – in % 6 transactions, led by A. Springer SE and ProSie- benSat.1 Media AG. Data < 10% is not labeled within the charts.

Top Disclosed Transactions Fig. 39 – Consumer Services - Most Active Companies • The top three recent acquisitions were made by Axel (Number of transactions) Springer SE in 2012 and 2014. The transaction value was relatively low. 2005 – LTM14 Total LTM activity comparison1 • The top three recent disposals were conducted by A D Total share A D Total ProSiebenSat.1 Media AG, Metro AG and Axel A.SPRINGER SE VNA 125 47 172 34% 2 3 5 Springer SE. PROSIEBENSAT.1 MEDIA AG 48 21 69 14% (1) 5 4 RTL GROUP SA 38 23 61 12% 2 (1) 1 BRENNTAG AG 54 5 59 12% (2) (1) (2) KLOECKNER & CO SE 33 11 44 9% (2) (1) (3) Remaining companies 51 44 95 18% (2) 1 (2) Total Transactions 349 151 500 100% (3) 6 3

Notes: 1 Transactions in LTM14 less the average of yearly transactions from 2005-LTM14

Fig. 40 – Consumer Services - Top Disclosed Recent Transactions (last three periods)

Year Type Buyer/Seller Target Region Value (€bn)

2012 A A.SPRINGER SE VNA Grupa Onet.pl S.A. Europe 0.22

2014 A A.SPRINGER SE VNA Coral-Tell Internet Services Ltd. Rest 0.17

2012 A A.SPRINGER SE VNA Totaljobs Group Ltd Europe 0.13

2012 D PROSIEBENSAT.1 MEDIA AG SBS Discovery Media Europe 1.29

2012 D METRO AG Real's Eastern Europe Business Germany 1.10 2013 D A.SPRINGER SE VNA Axel Springer AG, Regional Newspapers, TV Program Guides & Germany 0.92 Women's Magazines

22 Sector Analysis | Consumer Services Regional Activity and Focus

Regional Focus Fig. 41 – Consumer Services – Activity by Region (Number of transactions) • Global activity was mainly concentrated within the Consumer Services Focus of Transactions by Region Rest of Europe (233 transactions; 35%) and Germany Acquisitions (184 transactions; 45%). 80 76 • Net acquisitions were led by the Rest of Europe (101), 6 North America (39) and Germany (39), implying a gen- 60 eral extension of consumer services. 29 43 Remaining Countries • In 2007, companies in this sector acquired 36 German 40 36 5 33 35 347 33 companies. This amount far exceeded the number of 9 6 5 26 BRICS 24 5 22 5 acquisitions in all remaining years of the report and 5 25 15 20 36 16 16 17 North America 5 13 17 was related primarily to numerous small transactions 15 13 for the build-up of the mail order business (PIN) at 9 9 7 10 8 8 7 Europe 0 6 5 8 9 6 7 Germany A. Springer SE. 8 12 15 11 9 10 10 11 12 • Aside from Germany, France showed the highest ac- 13 8 8 14 20 18 16 tivity. From 2005 to September 2014, 39 transactions 22 22 22 involving French targets were settled. Targets from the UK and from the Netherlands accounted for 27 and 40 12 26 transactions respectively. Disposals 7 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 • In France, 73% of acquisitions were related to A. Springer SE, while 55% of disposals were related to Germany Rest of Europe (excl. Russia) North America BRICS Remaining countries RTL Group SA. Remaining Countries • Outside of Europe, most transactions were settled in Data < 5 is not labeled within the charts. BRICS North America. With 55 transactions during the research period, this region accounted for 11% of all Fig. 42 – Consumer Services – Activity by Region North America (Number and % share of transactions) transactions in the consumer service sector. Consumer Services Focus of Transactions by Region Europe • M&A activity related to BRICS countries was very lim- Acquisitions Germany 200524 200643 200776 200833 200922 201036 201135 201234 201326 LTM1433 ited. Only 4% of all transactions related to these coun- 100% 18 Rest tries, half of which involved Russian companies. 21 12 17 80% 15 14 15 BRICS • 85% of acquisitions in North America were focused 38 North America 60% 23 42 50 on the retail subsector. This number significantly ex- 58 48 46 63 50 52 Europe 40% 18 ceeded the industry average of 19%. Germany 20% 47 27 32 36 29 24 31 13 21 21 0 23 20% 38 32 50 55 50 60 64 Rest 40% 83 73 BRICS 62 60% 55 36 56 North America 30 40 36 80% 36 Europe 27 15 Germany 100% 10 10 11 10 13 10 22 18 22 11 14 16 22 Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Germany – in % Rest of Europe (excl. Russia) – in % North America – in % BRICS – in % Remaining countries – in %

Data < 10% is not labeled within the charts.

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 23 Sector Analysis | Finance, Real Estate and Insurance Summary

Constituents Diversified Financial: Deutsche Bank AG, Commerzbank AG • This sector includes companies which offer services in Insurance: Allianz SE, Münchener Rueck AG, Talanx AG, finance and related industries such as insurance and Hannover Rueck SE real estate. Chart 6 (Pie) Credit Banks: Deutsche Boerse AG Real Estate: TAG Immobilien AG, Deutsche Wohnen AG, Regional Focus Deutsche Annington SE, Gagfah SA, LEG Immobilien AG, • 75% of all transactions recorded from January 2005 to Deutsche Euroshop AG September 2014 were related to European companies, Mortgage Banks: Aareal Bank AG, BB Biotech AG of these 32% in Germany. • Outside of Europe, M&A activity mainly focused on North America. Fig. 43 – Finance, Insurance and Real Estate – Constituents • Total disposals of 795 exceeded 700 acquisitions, (Number of companies / 30Sep14) leading to net disposals of 95. Transactions on a net acquisition basis showed an excess of disposals in Ger- 1

many (-28), North America (-60) and other regions (-31). 2 2

Activity 5 • With 25% and a total of nearly 1500 transactions from January 2005 to September 2014, this sector had the 15 4 highest transaction activity of all sectors. • There was an increase in overall M&A activity over the 6 observed period with an average of 154 transactions p.a. 9 Chart 6 (Pie) 1

Fig. 45 – Finance, Insurance and Real Estate – YoY Activity Chart(Number 3 (Line) of transactions) DAX MDAX TecDAX Diversified Financial 200 Insurance Credit Banks Real Estate Mortgage Banks 180

Mortgage Banks 160 Real Estate Fig. 44 –Credit Finanace, Banks Insurance and Real Estate – Transaction 140 Insurance Type andDiversiﬁed Regional Financial Focus 120 (Number of transactions / Jan05 – Sep14) 100 80 TecDAX HDAX 60 Disposals Acquisitions DAX 263 224 40 795 700 20

0 1,495 302 (20) 284 (40) 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 174 Acquisitions Disposals Net acquisitions Total activity 248

Total activity

Net acquisitions Acquisitions Germany Acquisitions Rest of Europe (excl. Russia) Acquisitions Other regions Disposals Germany Disposals Disposals Rest of Europe (excl. Russia) Disposals Other regions RoW EUR Acquisitions GER RoW EUR GER 24

Disposals Acquisitions Sector Analysis | Finance, Real Estate and Insurance Transaction Type and Index Activity

Activity Overview • The transaction activity of 170 LTM14 transactions in- • M&A activity in this sector showed an increasing av- creased compared to 2013, driven mainly by higher erage trend of total transactions. This trend was sup- Deutsche Bank AG activity, and was above the histor- ported by all subsectors, except the Insurance sub- ical average of 154 transactions p.a. sector. • The high transaction activity within this sector was Activity by Index mainly a result of a continuous flow of real estate • Total activity was mainly driven by DAX companies, ac- transactions (included in all subsectors, many of these counting for roughly 85% of all transactions. transactions were executed by funds (e.g. RREEF)) which also manage capital belonging to other inves- Fig.Finance, 46 – Finance,Insurance Insurance and Real and Estate Real Activity Estate Overview– Activity Overview tors and are off balance sheet for the bank or insur- (Number of transactions) Number of transactions ance company. Hence, deal activity within this sector 200 187 is not entirely comparable to “regular” M&A activity 173 170 Net acquisitions 157 166 163 143 within the remaining sectors. 150 132 136 114 • 55% of total transactions in this sector were related to 100 the Diversified Financial subsector, and a further 31% 89 85 77 83 Total transactions p.a. 67 65 66 66 71 to the Insurance subsector. 51 18 50 12 Acquisitions • Net transactions showed 95 net disposals, mainly re- 1 Disposals lated to Deutsche Bank AG (-136) and Commerzbank 0 6 9 4 AG (-50). 50 17 23 48 30 • In 2010 and 2011 disposal activity in this sector was 71 72 81 77 41 particularly high. Nearly all companies showed a 100 90 86 87 102 107 higher disposal activity as a result of financing needs 150 after the financial crisis. Disposal activity at Deutsche 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Bank AG more than doubled compared to 2009. Acquisitions Disposals Total transactions Net acquisitions Average transactions p.a. • The increase of acquisitions in 2013 was primarily driven by a higher number of acquisitions at Allianz SE. 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Fig. 47 – Finance, Insurance and Real Estate – Activity by Index (Number of transactions) Finance, Insurance and Real Estate Activity Overview100

164 159,880 140 143 142 134 180 122 DAX MDAX TecDAX 120 118 108 115 119,660 160 101 140 0 100 79,440 140 80 77 72 39,22063 120 55 57 54 57 60 45 46 51 80 40 -1,0 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 60 21 17 20 20 20 1 3 1 2 2 2 1 12 10 13 15 6 9 40 0 9 9 1 1 3 1 1 1 20 20 1 7 13 11 15 16 10 10 2 2 1 0 40 1 1 3 1 1 1 (20) 60 44 53 80 61 (40) 73 66 100 76 77 77 (60) 92 91 120 (80) 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Acquisitions Disposals Total transactions Net acquisitions

2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 25

140 120 Sector Analysis | Finance, Real Estate and Insurance Top Players and Deals

Fig. 48 – Finance, Insurance and Real Estate - Most Active Companies Most Active Companies (Number and % share of transactions) Finance, Insurance and Real Estate Most Active Companies • The M&A transaction market was dominated by Acquisitions Deutsche Bank AG and Allianz SE, accounting for 51 67 89 65 66 85 66 71 77 83 roughly 60% of all the sectorial M&A activity in the 100% Other 29 period under review, with 650 and 293 transactions 80% 42 40 36 41 39 36 37 ALLIANZ SE 43 45 respectively. DEUTSCHE BANK AG 60% 18 18 15 • Since 2007, the Diversified Financials subsector has 15 27 27 28 39 25 40% 23 shown net disposals for both of its constituents 53 42 44 Deutsche Bank AG and Commerzbank AG. 20% 42 31 32 36 32 37 25 • The Insurance subsector reported a continuous excess 0 of acquisitions above disposals from 2007 onwards, 20% 43 39 51 51 50 51 47 56 53 56 mainly driven by Allianz SE. Other 40% • Deutsche Bank AG increased its share of disposals to ALLIANZ SE 21 25 60% 10 10 15 17 over 50% in the last three years, while the share of ac- 20 10 15 14 DEUTSCHE BANK AG quisitions declined slightly compared to earlier years. 80% 36 39 40 29 36 34 36 35 31 30 • The LTM14 development showed activity above the 100% 81 90 77 71 48 102 107 72 86 87 historical average, mainly due to Deutsche Bank AG Disposals (acquisitions and disposals), while acquisitions by 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Deutsche Annington Immobilien SE partly offset fewer Deutsche Bank AG – in % Allianz SE – in % Other – in % acquisitions at Commerzbank AG.

Top Disclosed Transactions Fig. 49 – Finance, Insurance and Real Estate – Most Active Companies (Number of transactions) • The top three acquisitions were conducted by Deutsche Wohnen AG and Münchener Rückversi- 2005 – LTM14 Total LTM activity comparison1 cherungsgesellschaft AG. Each time a German com- A D Total share A D Total pany was the target. DEUTSCHE BANK AG 257 393 650 43% 5 8 13 • The top three disposals were all carried out by ALLIANZ SE 167 126 293 20% 4 (1) 3 Deutsche Bank AG. COMMERZBANK AG 62 112 174 12% (5) (2) (8) MUENCHENER RUECKVERSICHERUNGS- 59 41 100 7% (0) (1) (1) GESELLSCHAFT AG TAG IMMOBILIEN AG 40 22 62 4% (0) 2 2 Remaining companies 115 101 216 14% 8 (0) 8 Total Transactions 700 795 1,495 100% 11 5 16

Notes: 1 Transactions in LTM14 less the average of yearly transactions from 2005-LTM14

Fig. 50 – Finance, Insurance and Real Estate - Top Disclosed Recent Transactions (last three periods)

Year Type Buyer/Seller Target Region Value (€bn) 2013 A DEUTSCHE WOHNEN AG GSW Immobilien AG (XTRA:GIB) Germany 3.68

2012 A MUENCHENER RUECKVERSICHERUNGS- Open Grid Europe GmbH Germany 3.20 GESELLSCHAFT AG 2013 A ALLIANZ SE NET4GAS, s.r.o. Europe 1.60

2013 D DEUTSCHE BANK AG Portugal Telecom, SGPS S.A. (ENXTLS:PTC) Europe 13.96 2012 D DEUTSCHE BANK AG Actavis Group hf. Europe 4.54

2014 D DEUTSCHE BANK AG Nevada Property 1 LLC North America 3.81

26 Sector Analysis | Finance, Real Estate and Insurance Regional Activity and Focus

Regional Focus Fig. 51 – Finance, Insurance and Real Estate – Activity by Region (Number of transactions) • M&A activity with German targets increased slightly in Finance, Insurance and Real Estate Focus of Transactions by Region the last twelve months compared to prior years. Most Acquisitions

of these transactions were related to real estate deals. 120 • Total disposals of 795 exceeded 700 acquisitions, 100 leading to net disposals of 95. Total net transactions 89 85 83 77 showed an excess of disposals in Germany (-28), 80 10 71 67 65 66 66 North America (-60) and remaining regions (-31). 10 11 20 Remaining Countries 60 51 • In the last twelve months, a higher number of acquisi- 40 36 BRICS 40 25 31 32 25 tions of non-European companies closed. Except for 31 33 34 23 North America this development, there were no significant shifts in 20 29 25 28 23 26 28 the relative regional mix throughout the observation 13 19 20 17 Europe 0 period. Germany 25 23 19 24 • 10% of all transactions settled in this sector during the 28 27 27 31 20 27 44 observation period were related to British targets. 22 40 28 33 23 11 29 French targets accounted for 7% of these transac- 35 37 29 48 15 tions, followed by Italian (4%), Spanish (3%) and 60 30 20 12 25 14 16 Polish (3%) companies. 71 21 72 80 77 81 15 • Transactions in the UK were mainly related to the 86 87 90 12 Financial Services subsector (73%). 100 12 102 • North American companies were involved in 13% of 107 120 Remaining Countries all HDAX transactions that were settled in this sector Disposals BRICS between January 2005 and September 2014. This is 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 below the HDAX average of 17%. North America • Transactions with companies from BRICS countries ac- Germany Rest of Europe (excl. Russia) North America BRICS Remaining countries Europe count for 6% of total transactions, which is in line Data < 10 is not labeled within the charts. with the HDAX average. 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Germany

Fig. 52 – Finance, Insurance and Real Estate – Activity by Region (Number and % share of transactions) Finance, Insurance and Real Estate Focus of Transactions by Region Acquisitions 51 67 89 65 66 85 66 71 77 83 100% Remaining Countries 14 12 80% 18 11 13 14 BRICS 11 24 37 North America 60% 48 50 47 44 42 45 40 52 30 Europe 40% Germany 43 20% 33 32 34 34 25 28 29 30 26 0 17 31 31 30 26 26 28 36 20% 38 41 Remaining Countries 40% 31 56 36 34 35 39 43 33 BRICS 60% 32 28 21 North America 80% 25 16 12 13 21 14 29 18 Europe 23 17 Germany 100% 10 12 11 81 90 77 71 48 102 107 72 86 87 Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Germany – in % Rest of Europe (excl. Russia) – in % North America – in % BRICS – in % Remaining countries – in %

Data < 10% is not labeled within the charts.

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 27 Sector Analysis | Industrials Summary

Constituents Heavy Machinery: Airbus Group, MAN SE, Nordex SE, • This sector is composed of companies that relate to Kion Group AG, MTU Aero Engines AG producing goods used in construction and manufac- ConstructionChart &6 (Pie)Engineering: Hochtief AG turing. This includes companies involved in aerospace Building Materials: Heidelbergcement AG and defence, industrial machinery, construction, cement Logistics: Deutsche Post AG and metal fabrication, and the transport & logistics Airlines: Deutsche Lufthansa AG subsector. Transportation Services: Fraport AG Regional Focus

• 65% of all transactions observed during the research Fig. 53 – Industrials Constituents period were settled with European targets, of these (Number of companies / 30Sep14) 29% in Germany. North American targets accounted for 16% of all transactions, while the share of transac- 3 tions with companies located in BRICS countries 1 4 1 amounted to 8%. 1 • On a net acquisition basis, acquisitions slightly out- 1 weighed disposals by 71. Companies in this sector shifted their investments from Germany (-79) to other 1 21 European countries (52) and other regions (98). 11

Activity 5 • Acquisition activity decreased significantly from 2011, primarily driven by Airbus Group, Bilfinger SE, and Sie- mens AG. The number of acquisitions conducted by Chart 6 (Pie) 14 these companies decreased by 75% in the last twelve months compared to 2011. DAX MDAX TecDAX Industrial Products & Services Heavy Machinery Construction & Engineering Industrial Products & Services: Siemens AG, Bilfinger SE, GEA Building Materials Logistics Airlines Group AG, Rheinmetall AG, Duerr AG, Kuka AG, Wirecard AG, Transportation Services TransportationAirlines Services Norma Group SE, DMG Mori Seiki AG, Pfeiffer Vacuum Tech .O.N., Logistics Building Materials Krones AG Construction & Engineering Heavy Machinery Industrial Products & Services Fig. 54 – Industrials - Transaction Type and Regional Focus (Number of transactions / Jan05 – Sep14) Fig. 55 – Industrials – YoY Activity (Number of transactions) TecDAX Chart 3 (Line) MDAX DAX 180 Disposals 182 148 Acquisitions 160 616 687

140 207 259 120 1,303 100

60 227 280 40

0 Acquisitions Germany Acquisitions Rest of Europe (excl. Russia) (20) Acquisitions Other regions Disposals Germany Disposals Rest of Europe (excl. Russia) Disposals Other regions (40) RoW 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 EUR GER RoW Acquisitions Disposals Net acquisitions Total activity EUR 28 GER Total activity

Net acquisitions Disposals Acquisitions Disposals

Acquisitions Sector Analysis | Industrials Transaction Type and Index Activity

Activity Overview Activity by Index • While acquisition activity decreased significantly com- • From 2008 to 2013, there was a constant downturn pared to 2005, disposal activity was roughly constant. in total M&A activity by DAX companies (mainly Sie- • In particular, the number of acquisitions dropped mens AG, Heidelbergcement AG and Deutsche Luf- sharply from 74 in 2012 to 32 in LTM14, mainly due thansa AG) at a CAGR of -12%, mostly driven by a to lower activity in the Industrial Products and Services decrease in acquisitions. subsector, driven mainly by lower activity from Sie- • MDAX activity in the industrial sector increased sharply mens AG and Bilfinger SE. In LTM14, the number of in 2011, driven by an increase in activity at Hochtief acquisitions more than halved compared to 2012. AG, Bilfinger SE and Airbus Group. Nevertheless, in re- • Disposal activity increased from 2012 on. This was cent years, transaction activity followed the sector mostly due to Siemens AG, which more than doubled trend to a lower activity level. its number of disposals from 11 in 2012 to 23 in the last twelve months. Fig.Industrials 56 – Industrials Activity –Overview Activity Overview • Since 2012, the number of total transactions has been (Number of transactions) Number of transactions below the average of 133 p.a. 200 • 54% of all transactions in this sector were related to Net acquisitions 148 152 155 146 152 the Industrial Products & Services subsector. 12% of all 150 130 125 110 108 transactions were related to companies involved in the 102 100 92 6696 development of Heavy Machinery, like Airbus Group 85 82 73 74 Total transactions p.a. 57 57 and MAN SE. The single company in the Construction 36 37 48 50 32 Acquisitions 4 & Engineering subsector, Hochtief AG, accounted for 18 18 23 Disposals another 12% of total transactions in this sector. 0 6 50 16 12 38 56 59 53 51 60 67 64 73 70 100 79 Total Transactions 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Acquisitions Disposals Total transactions Net acquisitions Average transactions p.a. 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Fig.Industrials 57 – IIndustrials Activity by – IndexActivity by Index (Number of transactions) Number of transactions

100 DAX MDAX TecDAX 120 92 90 80 80 87 87 100 69 65 70 59 64 62 62 57 60 57 100 55 55 45 80 51 49 47 43 44 42 43 43 49 39 159,880 38 43 60 40 32 34 28 27 27 29 40 20 21 17119,660 19 8 20 11 0 1 3 2 3 6 6 4 6 2 1 3 3 4 2 2 20 79,440 1 3 2 2 0 0 1 1 3 2 2 4 39,220 5 20 20 1 17 16 22 23 23 27 30-1,0 26 28 11 28 40 40 33 36 36 36 31 2005 2006 2007 200835 2009 2010 2011 2012 2013 LTM14 41 38 46 42 60 60 80 80 100 0 100 120 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Acquisitions Disposals Total transactions Net acquisitions

2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 29

70 60 Sector Analysis | Industrials Top Players and Deals

Fig. 58 – IIndustrials – Most Active Companies Most Active Companies (Number and % share of transactions) Industrials Most Active Companies • In this sector, Siemens AG was the company with the Acquisitions highest M&A activity. In total, 401 transactions by Sie- 92 85 96 82 57 57 73 74 48 32 mens AG were recorded between January 2005 and 100% SeptemberOther 2014. 56% of these transactions were dis- 80% HOCHTIEF AG 58 57 posals. 65 68 65 67 SIEMENS AG 60% 76 78 73 72 • Hochtief AG conducted 159 transactions in this pe- 40% 11 riod. Of these transactions, 71% were disposals, 20% 37 10 which dominated activity at Hochtief AG particularly 30 26 26 26 32 21 16 17 19 from 2009. 0 22 • Bilfinger SE accounted for 10% of total transactions in 29 23 20% 40 36 41 37 33 55 48 this sector, with 109 acquisitions compared to 27 dis- Other 40% 33 37 posals. Acquisitions at Bilfinger SE were higher than 24 HOCHTIEF AG 21 30 disposals in each year from 2005 to 2013. However, in 60% 15 SIEMENS AG 63 54 56 58 LTM14, Bilfinger SE conducted more disposals (6) than 80% 44 41 43 30 32 33 acquisitions (3). 100% 56 67 59 64 53 73 79 51 60 70 • Heidelbergcement AG and Airbus Group accounted Disposals for 9% and 8% of total transactions respectively. 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Transaction activity related to both companies more Simens AG – in % Hochtief AG – in % Other – in % than halved compared to 2005. • Taking into account that a total of 1,303 transactions Data < 10% is not labeled within the charts. took place over the entire period, net acquisitions of 71 were comparatively low over all periods and do not Fig. 59 – Industrals – Most Active Companies give an indication whether a expansion of this sector (Number of transactions) took place. • In 2010, 2011, 2013 and LTM14, disposals exceeded 2005 – LTM14 Total LTM activity comparison1 acquisitions with a total of 72, implying a slight dispo- A D Total share A D Total sition trend. LTM14 was, by 31 transactions, lower SIEMENS AG 177 224 401 31% (12) 0 (12) than the historical average of 133 p.a. due to fewer HOCHTIEF AG 46 113 159 12% (2) 5 3 acquisitions. BILFINGER SE 109 27 136 10% (8) 3 (5) HEIDELBERGCEMENT AG 74 40 114 9% (4) (2) (6) Top Disclosed Transactions AIRBUS GROUP 63 43 106 8% (5) 1 (5) • The top three recently disclosed acquisitions were all Remaining companies 218 169 387 30% (6) (0) (7) conducted by Siemens AG. Total Transactions 687 616 1,303 100% (38) 7 (31) • The disposal of Scania by MAN SE in May 2014 was

Notes: 1 Transactions in LTM14 less the average of yearly transactions from 2005 – LTM14 the transaction with the highest deal value in the last three years.

Fig. 60 – Industrals – Top Disclosed Recent Transactions (last three periods)

Year Type Buyer/Seller Target Region Value (€bn)

2014 A SIEMENS AG Dresser-Rand Group Inc. (NYSE:DRC) North America 5.93

2012 A SIEMENS AG Invensys Rail Limited Europe 2.16 2014 A SIEMENS AG. Rolls Royce Holdings plc, Energy Gas Turbine and Europe 0.96 Compressor Business 2014 D MAN SE Scania AB (publ) (OM:SCV B) Europe 6.65

2014 D SIEMENS AKTIENGESELLSCHAFT BSH Bosch und Siemens Hausgeräte GmbH Germany 4.61

2013 D SIEMENS AG Nokia Solutions and Networks B.V. Europe 2.87

30 Sector Analysis | Industrials Regional Activity and Focus

Regional Focus Fig. 61 – Industrials – Activity by Region (Number of transactions) • The regional mix of M&A activity for this sector was Industrials Focus of Transactions by Region predominantly in line with the overall HDAX average. Acquisitions • 22% of all acquisitions and 37% of all disposals took 120 place in Germany. 11 96 100 92 • The high number of acquisitions in 2007 was due to 11 11 85 82 higher acquisition activity by Siemens AG and Heidel- 80 73 74 bergcement AG with respect to North American com- 16 14 22 13 30 57 57 Remaining Countries 60 10 panies. 15 17 48 10 BRICS • With 121 transactions, UK-based targets accounted 40 36 40 31 32 28 27 26 for 26% of all European transactions. This share was 28 21 13 North America 20 11 particularly high in recent years. High M&A activity 17 Europe 17 15 17 15 11 16 17 17 10 was also observed in France (72 transactions) and Aus- 0 18 15 18 19 Germany 21 25 26 24 32 tria (31). 20 37 14 14 • BRICS countries accounted for 8% of total M&A ac- 30 21 14 21 15 40 15 35 tivity in this sector, which is slightly higher than the 29 17 12 51 13 HDAX average of 6%. 53 60 56 59 10 12 60 64 • The regional focus of Siemens AG over the observa- 67 70 80 73 tion period was outside of Germany. 25% of the com- 79 pany’s transactions were related to North American 100 targets, and a further 20% to European targets (excl. Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Germany and Russia). The share of transactions related Remaining Countries to companies located in the BRICS countries was 13% BRICS Germany Rest of Europe (excl. Russia) North America BRICS Remaining countries with a focus on Indian companies. North America • Hochtief AG strongly focused its M&A activity on Ger- Data < 10 is not labeled within the charts. Europe many, with 58% of its transactions taking place there. • Bilfinger SE conducted most of its transactions from 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Germany 2005 to September 2014 with companies located in Fig. 62 – Industrials – Activity by Region (Number and % share of transactions) Germany (37%) and in the UK (26%). 91% of all trans- Industrials Focus of Transactions by Region actions were related to European companies (incl. Acquisitions 92 85 96 82 57 57 73 74 48 32 Germany). 100% 12 11 10 11 19 13 Remaining Countries 11 21 • While the absolute number of M&A transactions de- 80% 20 16 BRICS 24 15 16 23 14 13 13 creased, the relative share of total M&A activity 31 North America 60% 18 among all regions was not subject to significant vari- 49 37 27 34 Europe 40% 47 37 35 ances during the period. 39 32 34 Germany 20% 28 35 31 18 18 18 18 19 23 23 0 32 31 23 34 20% 42 36 47 37 40 46 Remaining Countries 40% 25 47 BRICS 40 27 23 21 60% 52 36 40 22 North America 27 16 80% 15 20 19 Europe 10 12 14 13 16 Germany 100% 11 13 10 12 56 67 59 64 53 73 79 51 60 70 Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Germany – in % Rest of Europe (excl. Russia) – in % North America – in % BRICS – in % Remaining countries – in %

Data < 10% is not labeled within the charts.

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 31 Sector Analysis | Information Technology Summary

Constituents Software: SAP AG, Software AG, Nemetschek AG O.N., • Constituents are HDAX companies involved in the RIB Software AG research, development or distribution of technology- Semiconductors: Infineon Technologies AG, Kontron AG O.N., based goods and services. Manz AG, Dialog Semiconductor PLC, SMA Solar Technology AG, Chart 6 (Pie) Aixtron SE Regional Focus IT-Services: Cancom SE, Bechtle AG O.N. • 61% of all transactions from 2005 to September 2014 Electronic Components & Hardware: Jenoptik AG O.N., were executed with European targets, of these 35% in Osram Licht AG, Wincor Nixdorf AG, LPKF Laser & Electronics AG Germany. Internet: United Internet AG, Xing AG • Outside of Europe, transactions were strongly focused on North America (30% of total transactions). Compa- nies from BRICS countries played a minor role (2%). Fig. 63 – Information Technology – Constituents • On a net acquisition basis (acquisitions minus dis- (Number of companies / 30Sep14) posals), acquisitions significantly outweighed disposals by 154 compared to total transactions of 348. Com- 2 panies in this sector showed net acquisitions of 30 for 2 2 Germany, 56 for Europe and 68 for remaining countries. 4

Activity 4 • Total activity in the Information Technology sector 18 reached a low in 2012. Nevertheless, in 2013, both acquisition and disposal activity increased on a year- on-year basis, mainly driven by the Software, Semicon- 2 6 ductors and Internet subsectors. Chart 6 (Pie)14 • M&A activity at the two DAX companies SAP AG and Infineon Technologies AG decreased significantly. While SAP AG predominantly acquired, Infineon Tech- nologies AG was divesting majorly. DAX MDAX TecDAX Software Semiconductors IT Services Electronic Components & Hardware Internet

Internet Electronic Components & Hardware Fig. 65 – Information Technology – YoY Activity Fig. 64 – IT-ServicesInformation Technology – Transaction Type and (Number of transactions) Semiconductors Chart 3 (Line) Regional SoftwareFocus (Number of transactions / Jan05 – Sep14) 60

50 TecDAX MDAX 34 Disposals Acquisitions DAX 75 40 97 18 251

30 45 348 20 74 10 102 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Disposals Acquisitions Sector Analysis | Information Technology Transaction Type and Index Activity

Activity Overview Activity by Index • In every year covered by the report, HDAX IT compa- • The DAX company SAP AG recorded a significant de- nies conducted more acquisitions than disposals. crease of M&A activity from 2007 onward. The second • Total transactions showed a decrease in 2012 and a DAX company in this sector, Infineon Technologies recovery in the following years. Total transactions of AG, accounted for 7 acquisitions and 33 disposals 24 in LTM14 were still below the historical average of from January 2005 to September 2014 36 transactions p.a. from January 2005 to September • Acquisition activity by TecDAX companies was consid- 2014. erable throughout the period of the report. • While the high level of acquisitions in 2005 can be predominantly attributed to SAP AG (21 acquisitions), the high level in 2007 was due to increased activity at InformationFig. 66 – Information Technology Technology Overview – Activity Overview (Number of transactions) several TecDAX companies. Number of transactions • 42% of the transactions conducted in this sector from 80 Net acquisitions January 2005 to September 2014 can be attributed to 60 52 52 the Software subsector. In this subsector, acquisitions 37 40 38 38 32 35 (121) clearly outweighed disposals (24) throughout 40 30 29 32 Total transactions p.a. 26 25 the period of observation. 24 23 24 21 23 16 24 24 20 15 10 15 Acquisitions • The Semiconductor subsector follows with 20% of 6 14 Disposals 16 12 19 16 total transactions. In this subsector, more disposals 0 2 (40) than acquisitions (28) were conducted. The dis- 7 10 5 8 20 11 11 posal activity in this subsector decreased significantly 14 14 17 in recent years. Conversely, more acquisitions were ob- 40 Total Transactions served in the last twelve months. 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

InformationFig. 67 – Information Technology Technology by Index – Activity by Index (Number of transactions) Number of transactions

50 DAX MDAX TecDAX 40 29 33 19 18 10080 22 21 22 20 21 30 16 12 16 14 13 13 16 4 23 12 21 4 7 807 3 5 2 4 20 60 1 1 17 18 15 16 14 17 11 60 12 11 11 10 7 9 9 10 1 6 4 6 405 3 3 5 40 1 2 0 1 202 1 1 1 2 2 2 5 4 5 20 2 2 4 5 4 10 8 6 6 9 9 10 8 20 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Acquisitions Disposals Total transactions Net acquisitions

2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 33

50 Sector Analysis | Information Technology Top Players and Deals

Fig. 68 – Information Technology – Most Active Companies Most Active Companies (Number and % share of transactions) Information Technology Most Active Companies • M&A activity at SAP AG decreased significantly Acquisitions throughout the observation period. In 2005 SAP AG 38 23 38 26 21 23 25 14 24 24 100% disclosed 21 acquisitions and accounted for 55% of Other total acquisitions in this sector. In LTM14 SAP AG set- 80% INFINEON TECHNOLOGIES AG 45 52 61 61 tled only three transactions. 67 64 71 75 SAP AG 60% 77 79 • Acquisition activity at Infineon Technologies AG was 40% very limited throughout the period of the report and 55 48 20% 35 ceased in 2012 and 2013. From 2005 to 2011, its dis- 34 33 32 29 25 19 13 posal activity was quite high with an average of five 0 14 18 18 18 13 disposals per year. In the last twelve months, Infineon 29 20 20 20% 14 13 50 Technologies AG conducted two acquisitions and one 36 Other 40% 35 30 disposal. 43 64 100 INFINEON TECHNOLOGIES AG 60% 71 80 75 • The transactionSAP AG share at SAP AG decreased signifi- 80% 43 45 47 50 cantly in recent years. In LTM14, SAP AG conducted 4 29 18 transactions. However, there is no other company that 100% 14 7 14 11 11 17 10 2 5 8 exceeded the amount of transactions conducted by Disposals this company in the last twelve months. Almost all 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 companies in this sector (except for Dialog Semicon- SAP AG – in % Infineon Technologies AG – in % Other – in % ductor PLC and Aixtron SE) conducted between 1 and 4 transactions in the last twelve months. Data ≤ 10% is not labeled within the charts. • The level of activity in LTM14 was slightly below the historical average. Fig. 69 – Information Technology – Most Active Companies (Number of transactions) Top Disclosed Transactions

1 • In the last three years, SAP AG conducted the two 2005 – LTM14 Total LTM activity comparison deals with the highest value in this sector. The acquisi- A D Total share A D Total tion of Concur Technologies Inc., a provider of travel SAP AG 86 15 101 29% (6) (1) (6) and expense management services, was the most or INFINEON TECHNOLOGIES AG 7 33 40 11% 1 (2) (1) expensive? deal in SAP AG's history, followed by the CANCOM SE 24 6 30 9% 1 (1) 1 acquisition of the software and IT services company SOFTWARE AG 23 7 30 9% (1) 0 (1) Ariba Inc. BECHTLE AG O.N. 29 - 29 8% (1) - (1) • The three top acquisitions were related to North Remaining companies 82 36 118 34% 4 1 5 American targets Total Transactions 251 97 348 100% (2) (2) (4) • Transaction prices of the top disposals were relatively

Notes: 1 Transactions in LTM14 less the average of yearly transactions from 2005-LTM14 low in this industry compared to transaction prices for acquisitions.

Fig. 70 – Top Disclosed Recent Transactions in Information Technology (last three periods)

Year Type Buyer/Seller Target Region Value (€bn)

2014 A SAP AG Concur Technologies, Inc. (NasdaqGS:CNQR) North America 6.56

2012 A SAP AG Ariba Inc. North America 3.61 2014 A Infineon Technologies AG International Rectifier Corporation North America 2.29

2014 D Infineon Technologies AG Qimonda AG, Patent Business Germany 0.13

2014 D OSRAM LICHT AG Valeo Sylvania, L.L.C. North America 0.08 2012 D KONTRON AG O.N. Kontron Design Manufacturing Service (M) Sdn Bhd. Remaining countries 0.03

34 Sector Analysis | Information Technology Regional Activity and Focus

Information Technology Focus of Transactions by Region Regional Focus Fig. 71 – Information Technology – Activity by Region (NumberAcquisitions of transactions) • 34% of all transactions in this sector were conducted Information Technology Focus of Transactions by Region 50 with German targets. M&A activities with additional Acquisitions 11 European countries were less frequent in the IT sector 4050 38 38 3 4 (26% of all transactions) compared to North America 11 17 (30%). 3040 38 389 3 4 26 25 19 23 20 1323 23 16 24 24 Remaining Countries • On a net acquisition basis, acquisitions significantly 21 17 30 5 5 20 9 26 6 7 197 BRICS outweighed disposals by 154 compared to total trans- 20 7 25 16 24 2324 Remaining Countries 131223 16 9 23 14 8 actions of 348. Companies in this sector showed net 5 21 5 9 7 5 Nort America 1020 8 7 7 4 7 BRICS 7 6 acquisitions of 30 for Germany, 56 for Europe and 68 126 16 109 14 118 7 8 105 7 7 9 Europe 8 6 9 7 Nort America for remaining countries. 100 7 4 3 6 6 6 5 Germany • SAP AG was primarily focused on M&A activity with 9 6 8 10 108 7 2 9 11 Europe 7 63 7 5 0 7 5 3 North American targets (56% of total transactions 10 38 6 6 116 115 68 107 2 Germany 149 14 3 from January 2005 to September 2014). German tar- 3 5 2010 7 5 17 8 gets were involved in 12% of total transactions con- 11 11 6 10 14 14 ducted by SAP AG. 3020 17 • Most of the transactions with North American targets Disposals were settled in 2005 and 2006. Since then, acquisi- 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 tions of German targets were conducted more fre- Disposals Germany2005 2006Rest of Europe2007 (excl.2008 Russia) 2009 North2010 America 2011 BRICS2012 Remaining2013 countriesLTM14 quently in absolute and relative terms. Remaining Countries • With respect to acquisitions, an increase in the relative Data < 2 is not labeled within the charts. BRICS share of European targets (incl. Germany) can be seen Remaining Countries BRICSNort America in this sector. Fig. 72 – Information Technology – Activity by Region • In Europe (excl. Germany and Russia), activity was (Number and % share of transactions) NortEurope America Information Technology Focus of Transactions by Region highest with Swiss and Austrian targets, amounting to Germany 2005Acquisitions2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Europe 17 and 13 transactions respectively. M&A activity re- 38 23 38 26 21 23 25 14 24 24 100% lated to French and British targets was slightly lower, 2005 2006 200711 2008 2009 2010 2011 2012 2013 LTM14 GermanyRemaining Countries 21 19 amounting to eleven and ten respectively. 80% 33 26 28 29 BRICS 24 29 53 52 Nort America • M&A activity related to targets in BRICS countries was 60% 33 35 22 36 29 Europe very limited. Only 2% of total transactions from Jan- 33 40% 42 Germany uary 2005 to September 2014 were related to targets 21 26 50 20% 38 43 38 46 located in these countries, in particular to Chinese tar- 29 28 18 13 21 gets. 0 14 20 20% 45 38 43 47 50 64 55 70 Remaining Countries 40% 40 13 BRICS 12 60% 86 27 36 18 25 Nort America 35 50 80% 14 18 40 Europe 18 30 25 14 Germany 100% 14 7 14 11 11 17 10 2 5 8 Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Germany – in % Rest of Europe (excl. Russia) – in % North America – in % BRICS – in % Remaining countries – in %

Data < 10% is not labeled within the charts.

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 35 Sector Analysis | Pharma & Healthcare Summary

Constituents Pharmaceuticals:Chart 6 (Pie) Bayer AG, Merck KGaA, Stada Arzneimittel AG • This sector is composed of companies related to medical Healthcare: Fresenius Medical Care, Fresenius SE & CO KGAA, and healthcare goods or services. It includes hospital Celesio AG, Rhoen-Klinikum AG management firms, as well as companies involved in Medical Technology: Compugroup Med AG O.N., Qiagen NV, the production of biotechnology and a variety of med- Gerresheimer AG, Evotec AG, Carl Zeiss Meditec AG, ical products. Sartorius AG VZO O.N., Morphosys AG, Stratec Biomedical EO 1, Draegerwerk O.N. Regional Focus Fig. 73 – Pharma & Healthcare – Constituents • US targets were most frequently subject to M&A (Number of companies / 30Sep14) transactions in this sector. 146 transactions were settled with US companies, which accounted for 26% of all transactions in this sector during the observation period. German companies only accounted for 25% of 3 4 all transactions.

Activity • Following a peak in 2006, total deal activity declined, 8 16 driven by lower acquisition and disposal activity. 9 4 • Acquisition activity clearly outweighed disposal activity in this sector. 4 Chart 6 (Pie)

Fig. 75 – Pharma & Healthcare – YoY Activity Chart(Number 3 (Line) of transactions) DAX MDAX TecDAX Pharmaceuticals 90 Healthcare Medical Technology

80 Medical Technology Healthcare 70 Fig. 74 –Pharmaceuticals Pharma & Healthcare – Transaction Type and Regional Focus 60 (Number of transactions / Jan05 – Sep14) 50

40 TecDax MDAX 55 30 DisposalsDAX 88 Acquisitions 165 402 20 54

0 56 567 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 135

Acquisitions Disposals Net acquisitions Total activity Total activity

179 Net acquisitions

Disposals

Acquisitions Germany Acquisitions Rest of Europe (excl. Russia) Acquisitions Acquisitions Other regions Disposals Germany Disposals Rest of Europe (excl. Russia) Disposals Other regions RoW EUR GER RoW EUR GER

Disposals 36 Acquisitions Sector Analysis | Pharma & Healthcare Transaction Type and Index Activity

Activity Overview Fig.Pharma 76 – &Pharma Healthcare & Healthcare Overview – Activity Overview (Number of transactions) • In this sector, acquisitions accounted for 71% of all Number of transactions transactions. 100 84 Net acquisitions • The number of acquisitions stabilised at about 35 80 69 67 63 transactions per year. With the exception of 2012, 60 58 55 53 60 49 45 48 around 15 disposals per year were observed in this 41 47 45 43 36 38 Total transactions p.a. sector. 40 27 27 34 35 32 31 35 • A declining trend in the number of yearly transactions 20 Acquisitions 25 23 6 21 17 22 Disposals in this sector was observed. Even though total transac- 0 tions increased in LTM14, the number was still below 9 20 14 14 15 14 13 20 18 the historical average of 58 transactions per year from 24 26 40 January 2005 to September 2014. 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 • 33% of all acquisitions and 67% of all disposals in this sector were related to the Pharmaceutical subsector. Acquisitions Disposals Total transactions Net acquisitions Average transactions p.a.

Activity by Index • Disposal activity was comparatively low for MDAX and TecDAX companies. • In recent years, acquisition activity by TecDAX companies increased from a low level in 2012. • Disposal activity was very limited for TecDAX companies. 84% of total transactions in the Medical Technology100 sub- Total Transactions sector were acquisitions. 80 • From 2009, the amount of yearly acquisitions60 conducted

by 2005DAX 2006companies2007 2008 fluctuated2009 2010 2011between2012 2013 17 LTM1440and 20. 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

20 Fig. 77 – Pharma & Healthcare – Activity by Index Information(Number of transactions) Technology by Index 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Number of transactions 51 50 DAX MDAX TecDAX 80 39 42 39 35 40 30 60 32 27 28 29 22 23 0 30 28 20 40 25 24 18 12 12 12 14 13 12 14 13 40 19 20 10 7 8 10 9 18 20 10 20 20 17 17 17 17 7 6 15 7 15 12 13 11 11 12 12 11 8 9 10 9 8 6 7 7 6 6 6 0 20 1 6 7 4 6 4 5 3 1 50 0 20 1 1 1 1 1 2 4 3 2 3 2 2 3 2 2 10 5 6 5 40 10 30 11 11 11 12 14 14 60 20 19 19 10 30 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Acquisitions Disposals Total transactions Net acquisitions

2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 37

50 Sector Analysis | Pharma & Healthcare Top Players and Deals

Fig. 78 – Pharma & Healthcare – Most Active Companies Most Active Companies (Number and % share of transactions) Pharma & Healthcare Most Active Companies • M&A activity in this sector was dominated by Bayer Acquisitions AG, accounting for 26% of all transactions during the 55 60 47 45 34 35 38 32 31 35 observation period. Half of these transactions were 100% disposals.Other 80% MERCK KGAA • Merck KGaA settled 11% of all transactions that were 70 69 65 63 65 69 BAYER AG 60% 82 77 80 76 conducted between January 2005 and September 2014. 40% • The high acquisition activity in this sector was mainly 10 13 18 driven by companies in the Healthcare and the Med- 20% 11 32 13 31 23 20 21 18 18 17 13 ical Technology subsectors. Companies in the Health- 0 care sector conducted 133 acquisitions and 35 dis- 20% 30 33 33 36 35 50 47 posals in the period under review. Constituents of the 64 71 10 69 Other 40% 11 15 Medical Technology subsector accounted for 138 ac- 28 29 MERCK KGAA 60% 13 20 quisitions and 19 disposals. BAYER AG 60 56 50 • 93% of the transactions conducted by the medical 80% 15 29 38 39 36 33 36 15 technology firm CompuGroup Medical AG from 2005 100% 14 24 20 18 9 14 15 26 14 13 to LTM14 were acquisitions. Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Top Disclosed Transactions Bayer AG – in % Merck KGAA – in % Other – in % • The top recent transaction was the acquisition of Sigma-Aldrich Corporation by Merck KGaA, which was Data < 10% is not labeled within the charts. announced on 22/09/2014. • Not included in the table is the announced spin-off of Fig. 79 – Pharma & Healthcare – Most Active Companies Bayer AG’s material science division. The IPO for this (Number of transactions) business is expected for 2015 or 2016.

2005 – LTM14 Total LTM activity comparison1 A D Total share A D Total BAYER AG 75 74 149 26% 0 1 2 MERCK KGAA 36 28 64 11% (1) (1) (2) FRESENIUS MEDICAL CARE AG & 55 8 63 11% (2) (1) (2) CO KGAA FRESENIUS SE & CO KGAA 45 14 59 10% (3) (0) (3) COMPUGROUP MED.AG O.N. 53 4 57 10% (1) (0) (2) Remaining companies 138 37 175 31% (0) (3) (3) Total Transactions 402 165 567 100% (6) (4) (10)

Notes: 1 Transactions in LTM14 less the average of yearly transactions from 2005-LTM14

Fig. 80 – Top Disclosed Recent Transactions in Pharma & Healthcare (last three periods)

Year Type Buyer/Seller Target Region Value (€bn) 2014 A Merck KGaA Sigma-Aldrich Corporation (NasdaqGS:SIAL) North America 13.53

2014 A BAYER AG Merck & Co., Inc., Merck Consumer Care Business North America 10.19

2013 A MERCK KGAA AZ Electronic Materials S.A. (LSE:AZEM) Europe 2.10 2014 D BAYER AG Bayer HealthCare AG, Interventional Division North America 0.30

2012 D CELESIO AG Movianto GmbH Germany 0.13 2012 D CELESIO AG Lekarny Lloyds S. R. O. and Gehe Pharma Praha ,Spol.s R.o. Europe 0.08

38 Sector Analysis | Pharma & Healthcare Regional Activity and Focus

Regional Focus Fig. 81 – Pharma & Healthcare – Activity by Region (Number of transactions) • The US and Germany were the most important regions Pharma & Healthcare Focus of Transactions by Region for M&A transactions by HDAX companies in this sector. Acquisitions

From January 2005 to September 2014, they accounted 80 for 26% and 25% of all transactions, respectively. • British targets represented 7% of all transactions in 60 60 55 this sector during the observation period, followed by 17 47 45 French (4%) and Italian (4%) targets. 19 17 22 38 16 23 Remaining Countries 40 34 35 35 • 8% of all transactions were related to targets from the 16 11 32 31 6 7 BRICS BRICS countries. Approximately one third of these 18 9 11 7 6 18 13 13 8 transactions were settled with Chinese companies. In 20 17 Nort America 15 9 12 13 9 15 recent years, acquisitions in Brazilian and Indian com- 16 13 14 Europe 9 5 9 9 5 6 0 panies have been observed more frequently. 5 5 5 5 12 10 Germany 8 8 7 7 5 6 • From 2005 to LTM14, Bayer AG conducted 33% of its 9 6 6 5 9 13 20 14 14 15 14 transactions with North American targets. 10% of 6 20 18 6 Bayer AG’s transactions were related to BRICS coun- 24 26 tries, especially to Brazil. 40 Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Germany Rest of Europe (excl. Russia) North America BRICS Remaining countries

Data < 5 is not labeled within the charts. Remaining Countries BRICS Fig. 82 – Pharma & Healthcare – Activity by Region Nort America (Number and % share of transactions) Pharma & Healthcare Focus of Transactions by Region Europe 2005Acquisitions2006 2007 2008 2009 2010 2011 2012 2013 LTM14 55 60 47 45 34 35 38 32 31 35 Germany 100% 11 Remaining Countries 11 13 19 20 80% 31 16 BRICS 37 34 24 26 31 18 41 13 Nort America 60% 23 33 29 Europe 40% 30 36 44 26 32 42 28 43 Germany 20% 29 31 26 22 19 15 24 16 19 0 17 29 25 20% 33 36 33 38 36 31 50 Remaining Countries 40% 44 29 40 BRICS 60% 44 47 35 46 14 25 50 36 Nort America 28 80% 30 Europe 21 25 23 14 22 14 20 15 Germany 100% 11 14 24 20 18 9 14 15 26 14 13 Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Germany – in % Rest of Europe (excl. Russia) – in % North America – in % BRICS – in % Remaining countries – in %

Data < 10 is not labeled within the charts.

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 39 Sector Analysis | Telecommunications Summary

Chart 6 (Pie)

Constituents Telecommunications Services: Deutsche Telekom AG, Drillisch AG, • The telecommunication sector includes providers of Freenet AG, QSC AG, Telefonica Deutschland Holding AG wireless and wired services as well as companies that specialise in wireless services or manufacture communications equipment. Fig. 83 – Telecommunication – Constituents (Number of companies / 30Sep14)

Regional Focus • 85% of all transactions recorded in this sector from January 2005 to September 2014 were related to Eu- 1 ropean companies. • Outside of Europe, M&A activity was almost entirely limited to US targets. 5 Activity • Total M&A activity from 2005 to LTM14 was characterized by high volatility. Chart 6 (Pie) 5 • After peaking in 2009, total activity dropped sharply 4 within two years, but picked up again afterwards. • The DAX constituent Deutsche Telekom accounted for the majority of all transactions. DAX TecDAX Telecommunication Services

Fig. 84 –Telecommunication Telecommunications Services – Transaction Type Fig. 85 – Telecommunications – YoY Activity and Regional Focus (Number of transactions) Chart 3 (Line) (Number of transactions / Jan05 – Sep14)

35 21 Disposals TecDAX 37 Acquisitions 30 132 MDAX 105 DAX 25 41

20 237 54 15

5 70 14

(10) Acquisitions Germany Acquisitions Rest of Europe (excl. Russia) (15) Acquisitions Other regions Disposals Germany (20) Disposals Rest of Europe (excl. Russia) Disposals Other regions 2005 2006 2007 2008 2009 2010 2011 2012 2013LTM14 RoW EUR GER Acquisitions Disposals Net acquisitions Total activity RoW Total activity EUR GER

Net acquisitions

Disposals Disposals Acquisitions

Acquisitions

40 Sector Analysis | Telecommunications Transaction Type and Index Activity

Activity Overview TelecommunicationFig. 86 – Telecommunications Overview – Activity Overview (Number of transactions) • Both disposals and acquisitions were subject to very Number of transactions

high volatility during the observed period. This can be 50 Net acquisitions explained by the small size of this sector. 40 35 • The amount of total M&A activities peaked in 2009, 30 23 25 27 mainly driven by an increase in acquisitions. The de- 30 25 25 20 18 Total transactions p.a. 18 crease in the following two years was attributable to a 20 17 12 12 12 12 9 9 11 Acquisitions general drop in M&A activity. 10 7 5 6 1 Disposals • Compared to 2011, M&A activity more than doubled 0 in the last twelve months. Therefore, total transactions 2 1 2 3 3 6 10 8 6 7 in LTM14 slightly exceeded the historical transaction 11 13 13 12 14 20 17 15 average in this industry. 18 20 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Activity By Index

• M&A activity in this sector was dominated by the Acquisitions Disposals Total transactions Net acquisitions Average transactions p.a. Total Transactions single DAX company in this sector, Deutsche Telekom AG, accounting for roughly 80% of all activity between January2005 200620052007 and2008 September2009 2010 20112014.2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

50 TelecommunicationFig. 87 – Telecommunications by Index – Activity by Index (Number of transactions) 20 Number of transactions 10050 30 40 50 4080DAX MDAX TecDAX 80 0 40 10 60 28 3060 24 0 30 22 21 20 23 40 16 20 2040 12 40 9 20 20 16 1020 6 6 7 6 15 3 4 5 3 5 4 8 10 8 9 10 6 7 0 20 1 4 3 5 2005 2006 2007 2008 2009 4 20103 3 20113 2012 2013 3 LTM143 1 2 2 1 50 50 0 20 1 1 1 2 2 3 4 3 2 40 10 6 6 7 5 40 10 10 30 13 12 14 30 20 16 17 60 10 20 30 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 10 Acquisitions Disposals Total transactions Net acquisitions 0

2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 41 Sector Analysis | Telecommunications Top Players and Deals

Fig. 88 – Telecommunications – Most Active Companies Most Active Companies (Number and % share of transactions) Telecommunication Most Active Companies • In this sector, Deutsche Telekom AG accounted for Acquisitions 80% of all transactions settled between January 2005 17 12 7 9 18 12 5 6 11 12 100% and September 2014. In total, 190 transactions were 14 8 Other 25 22 17 17 17 conducted by this company, of which 81 were acquisi- 80% 40 18 17 FREENET AG 29 11 tions and 109 disposals. DEUTSCHE TELEKOM AG 60% • Freenet AG was the second most active company in this 94 83 40% 83 83 75 67 67 73 sector, accounting for 10% of total transactions. Freenet 57 60 20% AG primarily focused its M&A activity on Germany.

0 Top Disclosed Transactions 20% • The top acquisitions were conducted by Telefonica 58 Other 40% 76 77 75 85 86 86 93 Deutschland Holding AG and Deutsche Telekom AG. 89 91 FREENET AG 60% • In 2014, DeutscheDEUTSCHE TELEKOMTelekom AG AG divested 56.6% of 25 T-Mobile US Inc. for €28bn. This transaction value ex- 80% 13 24 15 15 14 17 14 ceeded the respective values of other disposals in this 100% 13 11 8 18 20 11 17 13 7 12 14 15 sector by far. Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Deutsche TelekomAG – in % Freenet AG KGAA – in % Other – in %

Data < 10% is not labeled within the charts.

Fig. 89 – Telecommunications – Most Active Companies (Number of transactions)

2005 – LTM14 Total LTM activity comparison1 A D Total share A D Total DEUTSCHE TELEKOM AG 81 109 190 80% 1 3 4 FREENET AG 8 15 23 10% 1 (2) (0) QSC AG 9 1 10 4% 0 (0) - TELEFONICA DEUTSCHLAND 4 6 10 4% (0) 0 (0) HOLDING AG DRILLISCH AG 3 1 4 2% (0) (0) (0) Total Transactions 105 132 237 100% 1 2 3

Notes: 1 Transactions in LTM14 less the average of yearly transactions from 2005-LTM14

Fig. 90 – Telecommunication - Top Disclosed Recent Transactions

Year Type Buyer/Seller Target Region Value (€bn) 2013 A TELEFONICA DEUTSCHLAND HOLDING AG E-Plus Mobilfunk GmbH & Co. KG Germany 6.17

2014 A DEUTSCHE TELEKOM AG Spectrum in Lower 700 MHz A Band North America 2.43

2014 A DEUTSCHE TELEKOM AG T-Mobile Czech Republic a.s. Europe 0.83

2014 D DEUTSCHE TELEKOM AG T-Mobile US, Inc. (NYSE:TMUS) North America 28.26 2013 D DEUTSCHE TELEKOM AG Scout24 Holding GmbH Germany 1.50

2012 D TELEFONICA DEUTSCHLAND HOLDING AG E-Plus Mobilfunk GmbH & Co. KG, Germany 0.40 Over 2000 Tower Sites in Germany

42 Sector Analysis | Telecommunications Regional Activity and Focus

Regional Focus Fig. 91 – Telecommunications – Activity by Region • 85% of all transactions conducted during the period (Number of transactions ) Pharma & Healthcare Focus of Transactions by Region of the report were related to European targets. Acquisitions • Between 2005 and 2010, acquisitions of non-German 20 17 18 17 European targets accounted for 60% of all acquisi- 19 16 23 tions. After peaking in 2010, acquisition levels in these 12 12 12 9 11 companies dropped sharply. In the last twelve months, 10 13 9 7 the respective share reduced to 25%. 7 10 6 3 3 5 Remaining Countries 3 3 • Within Europe, Hungary was the major market for ac- 7 3 6 7 3 4 3 4 3 BRICS quisitions in the earlier years of this report. Between 0 4 4 4 6 Nort America 2005 and 2012, 18 Hungarian companies were ac- 6 9 7 10 quired. However, due to political developments no 11 11 3 7 Europe 8 10 Hungarian targets were acquired in the last 21 months. 10 3 4 6 11 3 Germany • In recent years, a focus of transactions on German tar- 4 12 8 13 4 14 15 gets can be observed. In LTM14, 59% of the transac- 17 20 18 tions in this sector were German deals. 20 • The number of transactions outside of Europe was very Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 low. It was highest in North America, where compared to total transactions in this sector from January 2005 to Germany Rest of Europe (excl. Russia) North America BRICS Remaining countries September 2014, M&A transactions amounted to 11%. Data < 3 is not labeled within the charts. • Except for one disposal of an Indian company, M&A activity within BRICS countries was not noted in the Remaining Countries observation period. Fig. 92 – Telecommunications – Activity by Region BRICS (Number and % share of transactions) Pharma & Healthcare Focus of Transactions by Region Nort America Acquisitions 17 12 7 9 18 12 5 6 11 12 Europe 100% Remaining Countries 2005 2006 200714 200822 2009 2010 2011 2012 2013 LTM14 Germany 80% 33 17 BRICS 60 27 58 43 50 83 25 Nort America 60% 76 33 17 Europe 40% Germany 55 43 44 50 50 20% 33 39 40 18 17 0 22 20% 50 55 55 50 50 65 57 Remaining Countries 40% 69 67 56 BRICS 60% 17 25 Nort America 27 14 24 43 80% 40 23 20 Europe 25 22 29 33 13 Germany 100% 8 18 20 11 17 13 7 12 14 15 Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Germany – in % Rest of Europe (excl. Russia) – in % North America – in % BRICS – in % Remaining countries – in %

Data < 10 is not labeled within the charts.

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 43 Sector Analysis | Utilities Summary

Chart 6 (Pie)

Constituents Multi-Utilities: E.ON SE, RWE AG • This sector is composed of companies that provide electricity, gas and water services to the public. Fig. 93 – Utilities – Constituents Regional Focus (Number of companies / 30Sep14) • E.ON and RWE AG focused their M&A activity strongly on European countries. Whereas transactions relating to German targets accounted for 23% of total transactions in the observation period, the respective value for transactions with companies in the rest of Europe amounted to 70%. 2 Activity • Total M&A activity was very volatile during the obser- Chart 6 (Pie) vation period. • The level of acquisitions was consistently low after a 2 remarkable decline in acquisition activity from 2008 to 2010. 2 • The amount of disposals increased sharply from 2012. DAX Multi – Utilities • Changes in the political environment and in regulation in recent years have forced utilities to increase their di-

vestment activity, while they evaluated acquisitions Fig. 94 –Multi Utilities - Utilities – Transaction Type and Regional Focus (Number of transactions / Jan05 – Sep14) more carefully due to the given uncertainty.

12 18 Fig. 95 – Utilities – YoY Activity Disposals Acquisitions Chart(Number 3 (Line) of transactions) 181 TecDax 156 MDAX 50 DAX 111 45 337 124 40 35 30 25 58 14 20 15

10 Acquisitions Germany Acquisitions Rest of Europe (excl. Russia) 5 Acquisitions Other regions Disposals Germany 0 Disposals Rest of Europe (excl. Russia) Disposals Other regions RoW EUR (5) GER RoW (10) EUR GER (15) (20)

(25) Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Acquisitions

Acquisitions Disposals Net acquisitions Total activity Total activity

Net acquisitions

Disposals 44 Sector Analysis | Utilities Transaction Type and Index Activity

Activity Overview UtilitiesFig. 96 – Overview Utilities – Activity Overview (Number of transactions) • Even though there are only two companies assigned Number of transactions

to this sector, the number of total transactions was 50 45 46 42 Net acquisitions comparatively high. 38 38 40 35 32 • The amount of acquisitions peaked in 2008 and 28 30 30 25 reduced significantly thereafter. At the same time, 25 24 20 Total transactions p.a. disposal activity increased considerably. 20 17 14 14 10 14 Acquisitions • Total transactions of 42 in LTM14 exceeded the histor- 10 5 8 7 8 9 2 Disposals ical average of 35 transactions from January 2005 to 0 LTM 14. 10 6 • Acquisition activity was very volatile throughout the 8 10 14 14 13 20 15 16 17 observed period. 20 20 24 30 27 26 33 Activity by Index 40 Total Transactions • Due to the fact that this sector is limited to only two DAX 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 companies, M&A activity in those companies represents Acquisitions Disposals Total transactions Net acquisitions Average transactions p.a.

the 2005entire2006 activity2007 2008in the2009 sector.2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

UtilitiesFig. 97 –by Utilities Index – Activity by Index 50 (Number of transactions) Number of transactions 20 50 30 70 80 DAX 40 MDAX TecDAX Acquisitions 60 40 60 45 46 0 50 38 38 3042 10 800 32 35 40 40 28 25 30 20 20 60 30 25 24 20 20 14 17 14 10 40 8 9 0 10 1 4 6 7 8 7 8 3 20 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 20 0 Disposals (10) 10 40 6 (20) 20 14 15 16 14 13 9 20 17 12 24 60 (30) 30 27 (40) 40 33 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 (50) 10 Acquisitions Disposals Total transactions Net acquisitions 0 Net acquisitions

2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

70 60

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 45 Sector Analysis | Utilities Top Players and Deals

Fig. 98 – Utlities – Most Active Companies Most Active Companies (Number and % share of transactions) Top Disclosed Recent Transactions in Utilities • Accounting for 57% of all acquisitions and 64% of all Acquisitions disposals, E.ON SE executed more transactions than 14 25 17 30 24 8 14 7 8 9 100% RWE AG. Other 14 • The considerably high disposal activity in LTM14 was 36 29 25 33 80% 50 RWE AG 58 57 50 mainly driven by E.ON SE with 23 disposals conducted 71 E.ON SE 60% in this period, accounting for 70% of total disposal ac- 86 40% tivity. On average, E.ON SE conducted 12 disposals per 64 71 75 67 50 20% 42 43 50 year in the period under review. This exceptionally 29 high disposal activity was responsible for the high total 0 transaction activity in this sector compared to the his- 20% 45 53 torical average. 57 58 59 Other 40% 73 75 79 69 70 RWE AG 60% Top DisclosedE.ON SETransactions 55 • The transaction value of the top three recent divesti- 80% 43 47 42 41 27 25 21 31 30 tures far exceeded the value of the top three recent 100% 14 20 15 16 14 17 24 13 27 33 acquisitions. Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

E.ON SE – in % RWE AG – in % Other – in %

Fig. 99 – Utlities – Most Active Companies (Number of transactions)

2005 – LTM14 Total LTM activity comparison1 A D Total share A D Total E.ON SE 89 115 204 61% (3) 11 8 RWE AG 67 66 133 39% (4) 3 (1) Total Transactions 156 181 337 100% (7) 14 7

Notes: 1 Transactions in LTM14 less the average of yearly transactions from 2005-LTM14

Fig. 100 – Utilities – Top Disclosed Recent Transactions

Year Type Buyer/Seller Target Region Value (€bn) 2013 A E.ON SE Toroslar Elektrik Dagitim A.S. Europe 1.32

2013 A E.ON SE Istanbul Anadolu Yakasi Elektrik Dagitim A.S. Europe 0.94

2014 A E.ON SE STEAG GmbH Germany 0.57

2014 D RWE AG RWE Dea AG Germany 5.10 2012 D E.ON SE Open Grid Europe GmbH Germany 3.20

2013 D RWE AG NET4GAS, s.r.o. Europe 1.60

46 Sector Analysis | Utilities Regional Activity and Focus

Regional Focus Fig. 101 – Utilities – Activity by Region (Number of transactions) • M&A activity in this sector was focused on European Utilities Focus of Transactions by Region companies, accounting for more than 93% of all Acquisitions transactions over the observed period. 40 • E.ON SE focused 31% of its transactions in the period under review on Germany. Further, 62% of total trans- 30 30 actions related to other European countries (excl. 25 24 17 Russia), especially Sweden and the UK (17% and 8% 19 23 Remaining Countries 20 16 of total transactions, respectively). 17 14 3 23 14 BRICS • Within Europe, RWE AG showed a similar regional focus 23 20 3 9 10 8 10 7 8 Nort America as EON with 18% and 15% of total transactions in the 13 13 4 UK and in the Netherlands respectively. 7 4 7 Europe 3 3 4 3 0 • The high disposal activity at E.ON SE in LTM14 did not 4 4 4 5 6 7 5 Germany focus on a specific country within Europe. 9 9 8 7 10 8 7 • Outside of Europe, transaction activity was very limited. 15 8 4 11 19 13 Eight transactions with Russian companies and six with 14 15 14 16 17 17 North American companies have been recorded since 20 24 20 2005. 24 30 27 33 40 Remaining Countries Disposals BRICS 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Nort America Germany Rest of Europe (excl. Russia) North America BRICS Remaining countries Europe Data < 3 is not labeled within the charts. 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14 Germany

Fig. 102 – Utilities – Activity by Region (Number and % share of transactions) Utilities Focus of Transactions by Region Acquisitions 14 25 17 30 24 8 14 7 8 9 100% 14 Remaining Countries 18 22 80% BRICS 71 88 Nort America 60% 83 57 88 44 93 92 77 Europe 40% 76 Germany 20% 29 29 33 10 13 13 13 0 20 17 29 31 24 20% 36 40 44 33 64 Remaining Countries 40% BRICS 60% 75 79 54 57 47 65 63 73 Nort America 50 80% 29 Europe 13 Germany 100% 14 20 15 16 14 17 24 13 27 33 Disposals 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM14

Germany – in % Rest of Europe (excl. Russia) – in % North America – in % BRICS – in % Remaining countries – in %

Data < 10% is not labeled within the charts.

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 47 Appendix 1 Methodology

Entities in scope Sources • Analysis is based on the status of HDAX composition • Capital IQ is the main data source for this report, with as at 30 September 2014. all historical M&A information extracted exclusively • Based on this status, the analyses show all historical from this data source. M&A transactions regardless of whether the under- • The development of HDAX composition and the in- lying entity was part of HDAX in that period. dustry categorisation (nine “supersectors”) is derived • Industries are classified by their DAX industry codes. from Deutsche Börse AG.

Transactions in scope Limitations • Our analysis includes: • Affiliation to DAX/MDAX/TecDAX as well as other - the number of transactions: acquisitions and disposals macro- or microeconomics effects are likely to have an - the type of transaction: Mergers and Acquisitions impact on the M&A behaviour of an individual entity, - transactions with a percentage sought of at least 25% a sector or the HDAX as a whole. • An analysis of average deal values was not undertaken Time-related granularity (i.e. did not show representative results) due to the • Transactions are displayed on an annual basis. limited amount of deal values disclosed. Deal sizes are • LTM14 relates to the twelve month period from shown in the analysis of top transactions only. 1 October 2013 to 30 September 2014. • Transactions are allocated to the year/period of their status shown as at 30 September 2014.

48 Appendix 2 HDAX composition and transactions

Fig. 103 – HDAX composition and activity as at September 2014 and Jan 2005 – Sep 2014

€bn (Sep 14) Number of Transactions (Jan 2005 – Sep 2014) # Type Name Industry MarketCap Acquisitions Disposals Total Net 1 MDAX A.SPRINGER SE VNA Consumer Services 4.3 125 47 172 78 2 MDAX AAREAL BANK AG Finance, Insurance and Real Estate 2.1 7 16 23 (9) 3 DAX ADIDAS AG Consumer Services 12.3 12 6 18 6 4 MDAX AIRBUS GROUP Industrials 39.0 63 43 106 20 5 TecDAX AIXTRON SE Information Technology 1.3 1 1 2 - 6 DAX ALLIANZ SE Finance, Insurance and Real Estate 58.2 167 126 293 41 7 MDAX AURUBIS AG Basic Materials 1.8 6 - 6 6 8 DAX BASF SE Basic Materials 66.6 100 119 219 (19) 9 DAX BAYER AG Pharma & Healthcare 91.6 75 74 149 1 10 TecDAX BB BIOTECH AG Finance, Insurance and Real Estate 1.7 - 8 8 (8) 11 TecDAX BECHTLE AG O.N. Information Technology 1.3 29 - 29 29 12 DAX BEIERSDORF AG Consumer Goods 15.0 5 11 16 (6) 13 MDAX BILFINGER SE Industrials 2.2 109 27 136 82 14 DAX BMW AG Consumer Goods 55.4 14 12 26 2 15 MDAX BRENNTAG AG Consumer Services 6.0 54 5 59 49 16 TecDAX CANCOM SE Information Technology 0.4 24 6 30 18 17 TecDAX CARL ZEISS MEDITEC AG Pharma & Healthcare 1.9 8 2 10 6 18 MDAX CELESIO AG Pharma & Healthcare 5.4 22 12 34 10 19 DAX COMMERZBANK AG Finance, Insurance and Real Estate 13.4 62 112 174 (50) 20 TecDAX COMPUGROUP MED.AG O.N. Pharma & Healthcare 0.9 53 4 57 49 21 DAX CONTINENTAL AG Consumer Goods 30.1 55 25 80 30 22 DAX DAIMLER AG Consumer Goods 65 31 57 88 (26) 23 DAX DEUTSCHE ANNINGTON IMMOBILIEN SE Finance, Insurance and Real Estate 5.5 12 7 19 5 24 DAX DEUTSCHE BANK AG Finance, Insurance and Real Estate 38.1 257 393 650 (136) 25 DAX DEUTSCHE BOERSE AG Finance, Insurance and Real Estate 9.8 16 15 31 1 26 MDAX DEUTSCHE EUROSHOP AG Finance, Insurance and Real Estate 1.8 10 2 12 8 27 DAX DEUTSCHE LUFTHANSA AG Industrials 5.8 25 29 54 (4) 28 DAX DEUTSCHE POST AG Industrials 30.7 40 55 95 (15) 29 DAX DEUTSCHE TELEKOM AG Telecommunications 52.8 81 109 190 (28) 30 MDAX DEUTSCHE WOHNEN AG Finance, Insurance and Real Estate 4.8 19 7 26 12 31 TecDAX DIALOG SEMICONDUCTOR PLC Information Technology 1.5 4 1 5 3 32 MDAX DMG MORI SEIKI AG Industrials 1.8 5 3 8 2 33 TecDAX DRAEGERWERK VZO O.N. Pharma & Healthcare 1.1 2 - 2 2 34 TecDAX DRILLISCH AG Telecommunications 1.3 3 1 4 2 35 MDAX DUERR AG Industrials 2.0 13 9 22 4 36 DAX E.ON SE Utilities 27.9 89 115 204 (26) 37 MDAX ELRINGKLINGER AG Consumer Goods 1.5 10 1 11 9 38 MDAX EVONIK INDUSTRIES AG Basic Materials 12.8 29 45 74 (16) 39 TecDAX EVOTEC AG Pharma & Healthcare 0.4 12 2 14 10 40 MDAX FIELMANN AG O.N. Consumer Services 4.1 - - - - 41 MDAX FRAPORT AG Industrials 4.8 8 11 19 (3) 42 TecDAX FREENET AG Telecommunications 2.6 8 15 23 (7)

Most active company in the respective industry (by number of transactions) M&A Report – HDAX 110 Activity and Focus 2005 – 2014 49 Appendix 2 HDAX composition and transactions

€bn (Sep 14) Number of Transactions (Jan 2005 – Sep 2014) # Type Name Industry MarketCap Acquisitions Disposals Total Net 43 DAX FRESENIUS MEDICAL CARE AG & Pharma & Healthcare 16.6 55 8 93 47 CO KGAA 44 DAX FRESENIUS SE & CO KGAA Pharma & Healthcare 21.2 45 14 59 31 45 MDAX FUCHS PETROLUB SE Basic Materials 4.1 9 1 10 8 46 MDAX GAGFAH SA Finance, Insurance and Real Estate 3.2 5 10 15 (5) 47 MDAX GEA GROUP AG Industrials 6.6 35 10 45 25 48 MDAX GERRESHEIMER AG Pharma & Healthcare 1.6 13 2 15 11 49 MDAX GERRY WEBER INTERNATIONAL AG Consumer Services 1.4 6 - 6 6 50 MDAX HANNOVER RUECK SE Finance, Insurance and Real Estate 7.7 11 5 16 6 51 DAX HEIDELBERGCEMENT AG Industrials 9.9 74 40 114 34 52 DAX HENKEL AG & CO KGAA Consumer Goods 32.9 17 32 49 (15) 53 MDAX HOCHTIEF AG Industrials 3.8 46 113 159 (67) 54 MDAX Hugo Boss AG Consumer Services 6.8 2 1 3 1 55 DAX INFINEON TECHNOLOGIES AG Information Technology 9.2 7 33 40 (26) 56 TecDAX JENOPTIK AG O.N. Information Technology 0.5 10 11 21 (1) 57 DAX K+S AG Basic Materials 4.3 6 3 9 3 58 MDAX KABEL DEUTSCHLAND HOLDING AG Consumer Services 9.3 8 1 9 7 59 MDAX KION GROUP AG Industrials 2.9 9 4 13 5 60 MDAX KLOECKNER & CO SE Consumer Services 1.1 33 11 44 22 61 TecDAX KONTRON AG O.N. Information Technology 0.3 7 5 12 2 62 MDAX KRONES AG Industrials 2.2 3 1 4 2 63 MDAX KUKA AG Industrials 1.6 7 12 19 (5) 64 DAX LANXESS AG Basic Materials 4.0 20 14 34 6 65 MDAX LEG IMMOBILIEN AG Finance, Insurance and Real Estate 2.9 7 8 15 (1) 66 MDAX LEONI AG Consumer Goods 1.4 24 2 26 22 67 DAX LINDE AG Basic Materials 28.1 46 34 80 12 68 TecDAX LPKF LASER & ELECTRONICS AG Information Technology 0.3 2 - 2 2 69 MDAX MAN SE Industrials 13.1 14 8 22 6 70 TecDAX MANZ AG Information Technology 0.4 6 - 6 6 71 DAX MERCK KGAA Pharma & Healthcare 31.7 36 28 64 8 72 MDAX METRO AG Consumer Services 8.5 15 28 43 (13) 73 TecDAX MORPHOSYS AG Pharma & Healthcare 2.01 3 1 4 2 74 MDAX MTU AERO ENGINES AG Industrials 3.4 1 3 4 (2) 75 DAX MUENCHENER Finance, Insurance and Real Estate 26.9 59 41 100 18 RUECKVERSICHERUNGS- GESELLSCHAFT AG 76 TecDAX NEMETSCHEK AG O.N. Information Technology 0.7 7 2 9 5 77 TecDAX NORDEX SE Industrials 1.2 2 14 16 (12) 78 MDAX NORMA GROUP SE Industrials 1.1 12 2 14 10 79 MDAX OSRAM LICHT AG Information Technology 3.1 7 4 11 3 80 TecDAX PFEIFFER VACUUM TECH.O.N. Industrials 0.7 3 3 6 - 81 MDAX PROSIEBENSAT.1 MEDIA AG Consumer Services 6.7 48 21 69 27 82 TecDAX QIAGEN NV Pharma & Healthcare 4.2 37 5 42 32 83 TecDAX QSC AG Telecommunications 0.3 9 1 10 8 84 MDAX RHEINMETALL AG Industrials 1.5 25 5 30 20

50 Appendix 2 HDAX composition and transactions

€bn (Sep 14) Number of Transactions (Jan 2005 – Sep 2014) # Type Name Industry MarketCap Acquisitions Disposals Total Net 85 MDAX RHOEN-KLINIKUM AG Pharma & Healthcare 3.3 11 1 12 10 86 TecDAX RIB SOFTWARE AG Information Technology 0.5 5 - 5 5 87 MDAX RTL GROUP SA Consumer Services 10.4 38 23 61 15 88 DAX RWE AG Utilities 18.7 67 66 133 1 89 MDAX SALZGITTER AG Basic Materials 1.5 12 7 19 5 90 DAX SAP AG Information Technology 68.2 86 15 101 71 91 TecDAX SARTORIUS AG VZO O.N. Pharma & Healthcare 1.6 7 2 9 5 92 DAX SIEMENS AG Industrials 79.1 177 224 401 (47) 93 MDAX SKY DEUTSCHLAND AG Consumer Services 5.9 8 8 16 - 94 TecDAX SMA SOLAR TECHNOLOGY AG Information Technology 0.7 3 - 3 3 95 TecDAX SOFTWARE AG Information Technology 1.5 23 7 30 16 96 MDAX STADA ARZNEIMITTEL AG Pharma & Healthcare 1.9 20 9 29 11 97 TecDAX STRATEC BIOMEDICAL EO 1 Pharma & Healthcare 0.5 3 1 4 2 98 MDAX SUEDZUCKER AG Consumer Goods 2.5 17 13 30 4 99 MDAX SYMRISE AG Basic Materials 5.5 24 4 28 20 100 MDAX TAG IMMOBILIEN AG Finance, Insurance and Real Estate 1.12 40 22 62 18 101 MDAX TALANX AG Finance, Insurance and Real Estate 6.6 28 23 51 5 102 TecDAX TELEFONICA DEUTSCHLAND Telecommunications 4.6 4 6 10 (2) HOLDING AG 103 DAX THYSSENKRUPP AG Basic Materials 11.8 70 65 135 5 104 MDAX TUI AG Consumer Goods 3.4 34 28 62 6 105 TecDAX UNITED INTERNET AG Information Technology 6.8 15 10 25 5 106 DAX VOLKSWAGEN AG VZ Consumer Goods 78.1 75 57 132 18 107 MDAX WACKER CHEMIE AG Basic Materials 4.8 6 4 10 2 108 MDAX WINCOR NIXDORF AG Information Technology 1.2 7 1 8 6 109 TecDAX WIRECARD AG Industrials 3.6 16 - 16 16 110 TecDAX XING AG Information Technology 0.5 8 1 9 7 110 HDAX 1,300.7 3,260 2,671 5,931 589 Of which 30 DAX 1,013.2 1,869 1.932 3.801 (63) 50 MDAX 242.2 1,077 630 1,707 447 30 TecDAX 45.4 314 109 423 205

11 Basic Materials 145.1 328 296 624 32 10 Consumer Goods 285.3 282 238 520 44 12 Consumer Services 77.00 349 151 500 198 21 Industrials 216.9 687 616 1,303 71 14 Finance, Insurance and Real Estate 184.0 700 795 1,495 (95) 19 Information Technology 98.5 251 97 348 154 16 Pharma & Healthcare 185.9 402 165 567 237 5 Telecommunications 61.6 105 132 237 (27) 2 Utilities 46.6 156 181 337 (25)

Most active company in the respective industry (by number of transactions)

(1) Full set of historical number of transactions based on the composition of the HDAX as at September 2014, regardless whether the company was/was not part of HDAX Source: Capital IQ, HDAX, Deloitte analysis M&A Report – HDAX 110 Activity and Focus 2005 – 2014 51 Appendix 3 HDAX transactions by region and sector

Fig. 104 – HDAX transactions by region and sector Jan 2005 – Sep 2014

Basic materials Consumer Goods Consumer Services FSI Industrials Region / Country A D T A D T A D T A D T A D T Total 328 296 624 282 238 520 349 151 500 700 795 1,495 687 616 1,303 Europe 174 198 372 201 175 376 264 133 397 526 532 1,058 407 434 841 Germany 51 112 163 71 89 160 107 72 179 224 248 472 148 227 375 Rest of Europe 123 86 209 130 86 216 157 61 218 302 284 586 259 207 466 United Kingdom 28 17 45 19 11 30 21 6 27 62 87 149 78 40 118 France 16 9 25 17 15 32 26 13 39 62 44 106 26 46 72 Netherlands 8 7 15 8 12 20 18 8 26 15 19 34 18 11 29 Italy 12 4 16 13 5 18 3 2 5 27 27 54 13 7 20 Switzerland 11 12 23 7 7 14 12 4 16 6 12 18 178 9 267 Spain 8 9 17 6 5 11 6 - 6 23 16 39 11 8 19 Sweden 2 3 5 5 7 12 7 2 9 7 12 19 10 15 25 Poland 1 3 4 7 5 12 12 1 13 27 20 47 6 2 8 Austria 4 1 5 10 4 14 9 1 10 6 4 10 12 19 31 Belgium 5 3 8 1 3 4 4 2 6 11 6 17 8 9 17 Czech Republic 1 1 2 3 - 3 - 2 2 3 4 7 6 6 12 Hungary 1 2 3 2 - 2 3 5 8 3 4 7 2 4 6 Norway 9 3 12 2 - 2 7 2 9 - 4 4 12 7 19 Denmark 1 - 1 5 1 6 5 1 6 1 2 3 10 4 14 Turkey 4 - 4 6 1 7 4 2 6 11 1 12 4 - 4 Finland 1 6 7 5 2 7 1 - 1 5 1 6 5 5 10 Romania 2 1 3 4 - 4 4 4 8 5 1 6 3 2 5 Ireland - - - - 3 3 2 1 3 8 5 13 1 3 4 Slovakia 1 - 1 2 - 2 3 - 3 1 1 2 5 - 5 Portugal 2 2 4 3 2 5 - 1 1 1 3 4 1 2 3 Other 6 3 9 5 3 8 10 4 14 16 10 26 9 6 15 North America 83 48 131 33 32 65 45 8 53 88 150 238 122 88 210 Canada 16 2 18 2 4 6 3 2 5 4 3 7 15 3 18 United States 67 46 113 31 28 59 42 6 48 84 147 231 107 85 192 BRICS 33 21 54 27 13 40 16 4 20 44 43 87 76 34 110 Brazil 8 7 15 4 5 9 2 - 2 2 3 5 7 4 11 China 14 4 18 10 2 12 3 - 3 4 1 5 17 5 22 India 7 7 14 6 1 7 4 - 4 2 3 5 34 20 54 Russia 1 - 1 4 2 6 6 4 10 29 31 60 15 5 20 South Korea 3 3 6 3 3 6 1 - 1 7 5 12 3 - 3 Rest of the World 38 29 67 21 17 38 24 6 30 42 70 112 82 60 142 Australia 7 1 8 3 3 6 2 1 3 12 32 44 33 28 61 South Africa 4 3 7 1 3 4 3 - 3 3 4 7 5 4 9 Singapore 1 3 4 2 - 2 - 1 1 5 6 11 6 3 9 Taiwan 1 3 4 2 - 2 - - - 3 - 3 1 - 1 Thailand - 3 3 1 2 3 - 2 2 - 1 1 - - - Other 25 16 41 12 9 21 19 2 21 19 27 46 37 25 62

Notes: A = Acquisitions, D = Disposals, T = Transactions; Source: Capital IQ, Deloitte analysis

52 Appendix 3 HDAX transactions by region and sector

IT Pharma & Healthcare Telecommunications Utilities Total Region / Country A D T A D T A D T A D T A D T Total 251 97 348 402 165 567 105 132 237 156 181 337 3,260 2,671 5,931 Europe 149 63 212 223 110 333 91 111 202 142 169 311 2,177 1,925 4,102 Germany 75 45 120 88 56 144 37 70 107 18 58 76 819 977 1,796 Rest of Europe 74 18 92 135 54 189 54 41 95 124 111 235 1,358 948 2,306 United Kingdom 9 1 10 25 12 37 5 4 9 36 21 57 286 202 488 France 9 2 11 12 8 20 - 6 6 3 3 6 171 146 317 Netherlands 5 - 5 8 8 16 4 4 8 13 11 24 97 80 177 Italy 3 - 3 16 5 21 - 1 1 11 5 16 98 56 154 Switzerland 14 3 17 8 3 11 5 3 8 - - - 81 53 134 Spain 6 - 6 7 5 12 2 2 4 12 3 15 81 83 134 Sweden 1 - 1 11 - 11 - 2 2 12 20 32 55 61 116 Poland 1 - 1 4 2 6 1 - 1 5 4 9 64 37 101 Austria 9 4 13 7 1 8 1 1 2 1 1 2 59 36 95 Belgium 2 1 3 4 - 4 - - - 2 2 4 37 26 63 Czech Republic 1 1 2 5 2 7 7 1 8 12 7 19 38 24 62 Hungary 2 1 3 - - - 18 5 23 3 8 11 34 29 63 Norway 3 1 4 5 - 5 - - - 1 3 4 39 20 59 Denmark 2 - 2 10 2 12 - 3 3 1 2 3 35 15 50 Turkey 1 - 1 2 - 2 - 1 1 7 3 10 39 8 47 Finland 2 2 4 1 - 1 - - - 1 3 4 21 19 40 Romania - 1 1 - 1 1 1 - 1 2 2 4 21 12 33 Ireland - - - - 2 2 - 2 2 - 2 2 11 18 29 Slovakia 2 1 3 - - - 7 1 8 - 3 3 21 6 27 Portugal - - - 2 - 2 ------9 10 19 Other 2 - 2 8 3 11 3 5 8 2 8 10 61 42 103 North America 82 23 105 116 38 154 9 17 26 3 3 6 581 407 988 Canada 8 - 8 5 3 8 - 1 1 1 - 1 54 18 72 United States 75 23 97 111 35 146 9 19 25 2 3 5 527 389 916 BRICS 2 6 8 40 8 48 - 1 1 7 3 10 245 133 378 Brazil - - - 11 1 12 - - - 2 - 2 36 20 56 China 1 5 6 13 2 15 ------62 19 81 India 1 - 1 10 3 13 - 1 1 - - - 64 35 99 Russia - 1 1 5 2 7 - - - 5 3 8 65 48 113 South Korea - - - 1 - 1 ------18 11 29 Rest of the World 18 5 23 23 9 32 5 3 8 4 6 10 257 205 462 Australia 3 - 3 4 2 6 ------64 67 131 South Africa - - - - 1 1 3 1 4 - - - 19 16 35 Singapore 1 - 1 3 - 3 1 - 1 1 - 1 20 13 33 Taiwan 1 2 3 2 - 2 ------10 5 15 Thailand - - - 2 - 2 - - - 1 - 1 4 8 12 Other 13 3 16 12 6 18 1 2 3 2 6 8 140 96 236

Notes: A = Acquisitions, D = Disposals, T = Transactions; Source: Capital IQ, Deloitte analysis

M&A Report – HDAX 110 Activity and Focus 2005 – 2014 53 About Deloitte

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Chart 6 (Pie)

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M&A Report – HDAX 110 Activity and Focus 2005 – 2014 55 Glossary of Terms

% Percentage & And € Euros A Acquisitions AG German corporation BM Basic Material bn Billion BRICS Brazil, Russia, India, China and South Korea CAGR Compound annual growth rate CG Consumer Goods D Disposals DAX German stock market index e. g. For example EU European Union EUR Europe excl. excluding FY13 Financial year 2013 GER Germany GmbH German limited liability company i. e. That is inc. Incorporated Ind Industrials IT Information Technology KGAA German partnership limited by shares LTM14 Last twelve months as of September 2014 M&A Mergers & Acquisitions MarketCap Market Capitalization MDAX Mid-Cap-DAX p. a. Per year SE Societas Europaea T Transactions TecDAX Technology DAX UK United Kingdom US/USA United States of America vs Versus YTD14 Year-to-date 2014, January – September 2014

56 M&A Report – HDAX 110 Activity and Focus 2005 – 2014 57 Your contacts

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