The DAX Perspective: The rise of the US investor and the play for Emerging Markets Dresdner Kleinwort’s German Investment Seminar Special Report

 Contents

Introduction 3

Overview 4

The significance of the US investor 6

Building the US investor relationship 8

Opportunities and challenges for German corporates 11

Dresdner Kleinwort contributors 14

 Introduction

For the last ten years, Dresdner Kleinwort’s German Investment Seminar has provided a unique annual forum for leading German companies to come together with major US institutional investors enabling them to enhance their shareholder dialogue.

The importance of US investors to German corporates is increasingly evident. Since 2004, the US has represented the most important source of investment in German companies, outside of the domestic investor community. Today the US now accounts for more than 40% of total foreign ownership of German equities.

To mark the tenth anniversary of the German Investment Seminar, we assessed the importance of this transatlantic relationship from the German point of view. I am delighted to present the results of our research here.

The DAX Perspective: The rise of the US investor and the play for Emerging Markets draws together the views of more than 30 of Germany’s largest and most influential corporates, including 14 of the DAX30 constituents, representing €645bn in revenues (2006), and a market capitalisation of €544bn – more than half of the DAX30 and MDAX total.

In this report, we consider how levels of US share ownership in German companies are expected to change; we explore the importance of the US as a revenue source compared to other regions; and we feedback the views of German business leaders when asked how they intend to build stronger ties with their US investor community. We also analyse what the DAX30 and MDAX see as the opportunities for growth as the US economy potentially slows down.

As the following pages reveal, the relationship between corporate Germany and US investors is strong and getting stronger. While Eastern Europe and Asia-Pacific are expected to grow more dramatically as a source of revenue than the US, US-based institutional investors are now considered vital as active, interested and trusted investment partners for any German corporate wanting to diversify its investor base.

I would like to thank every company that contributed to this research. The rising attendance at our GIS event each year clearly attests to a resolute desire among US investors to share fully in the future potential of Germany’s most forward-looking companies. We hope this research provides valuable additional insight as to how we can all make that happen.

Stefan Jentzsch Chief Executive, Dresdner Kleinwort

 Overview

US investors now own 18% of German shares, putting them almost on a par with German institutional investors. They have increased their share of ownership ninefold in five years. Why are US funds flowing so eagerly into corporate Germany?

Executive Summary

US ownership of German shares has surged Moreover, with US investors now holding 18% of German US investors have significantly increased their holding in equities, they are close to overtaking German institutional German equities over the last five years largely by buying investors, who have seen their holding halve over the into the German globalisation story. The strength of DAX30 last ten years to just 20.9% in 2006. German cross- and MDAX listed companies as exporters to Eastern Europe shareholdings and insider stakes have seen a more gradual, and Asia, as well as the diversified nature of their revenues but perceptible decline. from other global markets, has made them more attractive as an alternative to domestically exposed US companies. US to eclipse German ownership? German companies are increasingly seen as a natural The growing influence of US investors, as well as the buying opportunity for investors looking to capitalise on the opportunities created by increased access to US capital growing economic influence of Emerging Markets. market funding, is not being overlooked by German companies. Of those surveyed in this report, 53% believed Our desk research shows that since 2001, the percentage of that US investors’ share of ownership will continue to German equities owned by US-based investors has surged increase over the next five years, whilst not a single from just over 2% to almost 18% in 2006, a ninefold increase respondent anticipates this ownership diminishing. in just five years. Our survey findings suggest that this trend is likely to continue. Additionally 47% believe that the US will be either the single most or equally most important location of shareholders in US now the dominant foreign investor five years’ time, eclipsing even Germany – which only 10% challenging domestic ownership of respondents saw as being the most important. Foreign investors accounted for 44.3% of German share ownership in 2006 (a proportion that has grown fairly Hedge fund ownership steadily over the last decade from 27% in 1997). The exact amount of German equities held by US hedge fund ownership is difficult to establish. According to This growth has been driven primarily by the flow of funds available data, hedge funds account for only 2.41% of share from US institutional investors, who have seen their share ownership of companies in the DAX30 and only 4.13% of the of foreign ownership of German equities rise from less than MDAX (as at November 2007). However, this is misleading 10% to more than 40% of the total.

 due to the nature of German bearer shares, the availability Emerging Markets and Asia expected to be the of stock lending programmes and the tendency of hedge engine of future revenue growth funds to take exposure through derivative instruments This shift in German corporate revenue streams looks set to such as contracts for difference (CFDs). With this in mind, continue. Our survey results show that DAX30 and MDAX actual hedge fund ownership is likely to be significantly companies are looking to Asia and Emerging Markets for higher, perhaps with US hedge fund ownership accounting future revenues. They expect that income from Germany and for a similar percentage of the total as US long-only funds. other mature European markets will become less important Furthermore, as active traders of shares, hedge funds are to German corporates as Eastern Europe and developing Asia an important US investor audience that cannot be ignored. increasingly demand their goods and services. However, their activity alone cannot account for the total rise in US investor interest in Germany in recent years. According to our survey, German companies rank Emerging Markets, including Asia, as likely to be of equal US buying into the German globalisation story? importance to their domestic market and Europe in terms of revenue in five years’ time. They also see some growth in The growing foothold of US investors into corporate revenues from the US. The ability of German corporates to Germany is clear but also logical. US investors have seen the develop export growth, driven largely by Emerging Markets, DAX30 and MDAX as a means to diversify portfolios away is precisely why US investors are increasing their flow of from domestic companies into stable overseas companies funds into Germany’s larger corporates. with exposure to growth markets such as Russia and China. The focus among German companies on exports to Europe Is corporate Germany insulated from a and Emerging Markets makes them particularly attractive potential US downturn? to US institutions. In short, German corporates represent an opportunity to increase exposure to companies whose One startling statistic stands out in this report – not a revenue stream differs from that of many American listed single German company responding to the survey thought stocks, without taking on the perceived risks of directly that a US downturn or recession in 2008 would hurt investing in Emerging Market companies. them significantly. Only 18% said that it would hit them, “enough to hurt”. A conclusive 82% of German corporates At first glance, the regional distribution of German exports questioned said that a US slowdown would have no has changed little over the last ten years. According to material impact on their business. This perhaps confirms OECD data, Europe – representing 73.6% of Germany’s the finding that Emerging Markets represent the future for share of exports – still consumes the vast majority, and has German companies in terms of revenues. fallen by just 0.1% since 1997. The share of exports to the Americas (including Latin America) increased by 1% with a comparative decline in exports to Asia in this time frame. This is misleading however, and a closer examination of the About this report data shows, in particular, why US investors increasingly see The DAX Perspective: The rise of the US investor German corporates as a globalisation play. and the play for Emerging Markets is a report based on the findings from a Dresdner Kleinwort Strong increase in German exports to survey of 33 of Germany’s largest companies, Emerging Markets including 14 of the DAX30. In Europe, the share of Germany’s exports to traditional markets such as France, Italy, The Netherlands and the • The companies that responded to the survey UK has been falling with the slack being taken up by have a total market capitalisation of €544bn emerging Eastern European markets. Exports to traditional (more than half of the DAX30 and MDAX markets – which together with the US make up the top total) and had revenues of €645bn. five destinations for German exports – dropped by 13.7% • Respondents were CEOs, CFOs and Heads of between 1996 and 2006. In the same period exports to Investor Relations. Eastern European countries have surged by 59%, putting • The research was carried out using an online the region on a par with Asia and the Americas. research tool in November 2007. A similar story applies to Asia. Established markets such • The survey was supplemented with extensive as Japan have dropped in importance, whilst exports to desk research and analysis carried out by the Middle East have grown sharply and those to China Dresdner Kleinwort based on sources such have more than doubled as a share of trade, rising from as Thomson Financial and OECD data. €5.6bn in real terms to €27.5bn. In 2006, Emerging Markets absorbed 26% of German exports.

 Section 1: The significance of the US investor

Over the last five years there has been a steady rise in ownership of German shares among US investors. They now rival German institutional investors in terms of percentage of ownership. Our survey suggests that this trend will continue.

The rise of the US investor as a force in Germany

Shift from domestic to German share ownership foreign ownership % ownership of German equities Over the last decade there has been a clear 45 shift from domestic to foreign ownership of 40

German companies, with US investors taking 35 the lead. The graph on the right suggests 30 this trend is likely to continue. Total foreign ownership of German shares has increased 25 from 27% in 1997 to 44% by the end of 20 2006. Today US investors own 18% of 15

German equities. 10

5 German institutional investors decline 0 The primary drop in domestic German 2001 2002 2003 2004 2005 2006

ownership has been among institutional US investors RoW investors investors, which has almost halved – down German institutions German cross-shareholdings and insider stakes

from 39% in 1997 to 21% by the end of 2006. Source: Thomson Financial and Dresdner Kleinwort, September 2007 Meanwhile, German holdings by strategic stakeholders (cross-shareholdings and insider stakes) have held fast, remaining relatively constant at around 35%.

 Rising US investment US ownership of German equities The percentage of German shares held by US- 20% 17.86 18% based investors increased almost sixfold from 16.30 1998 to 2006, rising from under 3% to 18%. 16% Moreover, since 2004, the US has represented 14% the single most important investor region 12% outside Germany. Previously, the UK and 10% 8.44 France were the top two foreign owners of 8% 5.78 German shares. 6% 4% 2.64 2.82 “Interestingly at the point where US investors became 2% the dominant foreign owners of German shares, 0% German equities were relatively undervalued. At our 2001 2002 2003 2004 2005 2006 German Investment Seminar events in 2004 and 2005, Source: Thomson Financial and Dresdner Kleinwort, September 2007 the strong message from German corporates was that they were restructuring, had robust earnings and Emerging Market exposure. US investors saw a good story.“ Klaus Tanner, Managing Director, US Equity Sales at Dresdner Kleinwort.

Trend continuing Proportion of shareholders from the US that clients expect to be Going forward, the trend of US ownership US-based in 5 years’ time is likely to continue. 53% of our German company respondents think that US investors The same as now, 47% will make up a greater proportion of the company’s shareholders in five years’ time. No one believes the proportion of US investors will decrease.

‘’The US investor community is one that requires increased nurturing and dialogue for management. Our More than now, 53% survey overwhelmingly emphasises the importance of this community, both now and in the future.’’ Dominic Hughes, Head of Corporate Broking for Europe Source: Dresdner Kleinwort’s The DAX Perspective Survey, December 2007 (excluding UK) at Dresdner Kleinwort.

US potentially surpassing Germany 5 years ago now 5 years time Respondents were asked which country or Country/region expected to be most important in terms of region they expected to be most important in locationSource: of shareholders Dresdner Kleinwort in five years’ time terms of location of shareholders in five years’ time. The results were surprising. Only 10% 47% United States 10% Germany mentioned Germany, conversely 47% thought 47% United Kingdom 33% Europe the US would be most important. (NB: Respondents were allowed to nominate more than one country/region) “The US is the largest financial market in the world and international diversification has increased Source: Dresdner Kleinwort’s The DAX Perspective Survey, December 2007 significantly. With troubling domestic times ahead, US investor interest in overseas markets like Germany is likely to increase.” Klaus Tanner.

 Section 2: Building the US investor relationship

Nearly all the companies we surveyed reported an increase in US investor meetings in the last five years and more than half believe this activity will continue to rise. However, German companies do not see a requirement to change their corporate governance framework to satisfy US investors.

Meeting the demands of US investors

More meetings in last five years Number of US investor meetings in last 5 years The growing importance of US investors

means it is crucial for German companies to Stayed the same, 6% maintain a healthy dialogue and constructive relationships. 94% of our respondents reported the number of US investor meetings their company has held in the last five years has increased. Notably, not a single respondent had seen the number of meetings decrease. Increased, 94% “This statistic is certainly borne out by our experience. We have increased our roadshows to the US in the last five years and have a regular dialogue with US investors Source: Dresdner Kleinwort’s The DAX Perspective Survey, December 2007 in between roadshows on all kinds of topics.“ Oliver Schmidt, Head of Investor Relations at Allianz.

Dialogue with US investors to Number of US investor meetings changing in the 5 years’ ahead continue to grow

Respondents were asked how they think the Likely to stay the same, 44% number of meetings with US investors will change in the five years ahead. Again, none of the respondents expected the number of meetings to decrease. 56% believe the number will increase.

“German corporates understand that the demand from Likely to increase, 56% US investors for first-hand contact indicates that US institutions do not view German equities as marginal holdings. These are major investments that merit close Source: Dresdner Kleinwort’s The DAX Perspective Survey, December 2007 dialogue with company management.” Michael Pfaff, Head of Global Banking for Germany at Dresdner Kleinwort.

 US investors well informed Investors’ understanding of company, sector and Germany German companies’ experience of US investors is positive. The majority of our Company respondents feel that US investors understand their company and their sector either very well or sufficiently. 81% felt that US investors understood their company very well or Sector sufficiently and 64% believed US investors similarly understood their sector.

“Our experience is that US investors tend to be Germany extremely well prepared – often more so than their German counterparts. When dealing with US 0% 10% 20% 30% 40% 50% 60% 70% investors, German corporates must be ready for tough Not enough Enough/sufficiently Very well questioning and never underestimate the level of Source: Dresdner Kleinwort’s The DAX Perspective Survey, December 2007 knowledge that exists.” Dominic Hughes.

Access to senior management What US investors want in the eyes of German corporates is a top priority The huge emphasis that US investors place Rank Requirement Total points* on face-to-face meetings with company 1 More access to senior 79 management is recognised by German management corporates who see ‘access to senior management’ as investors’ number one 2 More transparent reporting 60 requirement. More transparent reporting and 3 More regular communication 37 regular communication are also viewed as 4 More international management 13 priorities. More fundamental changes are not boards thought to be required. German companies believe US investors want more dialogue and 5 Better corporate governance 8 information rather than more fundamental 6 A US listing 4 changes such as making the management board more international, improving corporate *Weighted by ranking governance or listing on the US market. Source: Dresdner Kleinwort’s The DAX Perspective Survey, December 2007

“The key to building productive relationships with US investors is to feed the hunger for information.“ Dominic Hughes.

Little value attached to a permanent Whether investor relations office in US is beneficial US investor relations office Seven of the DAX30 have an investor relations Yes, 6% office in the US. Only 6% of the respondents in our survey said that they thought a permanent investor relations office in the US is beneficial. Not applicable, 18%

“No matter how important US investors may be, a permanent on-the-ground presence for German corporates is not. Most companies can organise US No, 76% investor relations through brokers, their German IR departments and independent roadshow firms.“ Klaus Tanner. Source: Dresdner Kleinwort’s The DAX Perspective Survey, December 2007

 Dispersion of Overview of where major North American investors are based North American investors The major US institutions (with over US$10bn of funds under management) are not confined to the East Coast, but are spread across the North American continent. This means that to satisfy investors’ desire for face-to-face meetings, German senior management and investor relations teams can be under pressure to undertake extensive travel.

“One of the reasons our German Investment Seminar event has grown and become so successful in the past ten years is because it represents a key and practical West Coast Central US Canada East Coast opportunity for German corporates to meet US investors 23 key institutions 19 key institutions 28 key institutions 105 key institutions from all over the US at one time. Likewise, US investors US$1,850bn of US$557bn of US$555bn of US$6,800bn of are prepared to travel for the chance to meet various equity assets under equity assets under equity assets under equity assets under management management management management German CEOs during one trip. The formula is simple US$693bn US$155bn US$256bn US$1,850bn but effective.” international international international international Klaus Tanner. equities equities equities equities

Source: Dresdner Kleinwort’s Really Useful Guide to North American Investors, September 2007

Importance of US listing German corporates see little value in a US listing German companies do not consider having a US listing as critical to attracting US Yes, 6% investment. Only 6% of our respondents see value in a US listing.

Only 12 German companies are currently ‘listed’ on either the NYSE or NASDAQ.

A number of major names have recently de-listed including BASF and BAYER. No, 94%

“There appears to be tremendous pent up momentum to delist and we expect that trend to continue. Apart Source: Dresdner Kleinwort’s The DAX Perspective Survey, December 2007 from the significant cost of listing and the stringent regulatory requirements, the kind of investor who is sophisticated enough to buy German shares would rather buy these in the German market.” German companies with a US listing Dominic Hughes. Allianz SE Fresenius Medical Care Aixtron GBC Biotech Daimler Infineon Technologies Deutsche Bank Qimonda Deutsche Telecom SAP EPCOS Siemens

Source: ADR.com, September 2007

10 Section 3: Opportunities and challenges for German corporates

Germany’s exports to Emerging Markets have increased noticeably over the last ten years, whilst share of exports to established European markets has declined. This trend is set to accelerate. According to respondents, DAX30 and MDAX companies are increasingly looking to Emerging Markets for revenue generation.

Facing outward for growth

New export markets drive growth Selected German export trends 1996–2006 (share of exports) Since 1996, the share of German exports to 250 the UK and France, Germany’s two biggest markets in that year, has fallen by 11.2% and 200 14.5% respectively. In contrast the importance 150 of both Russia and China as export markets for German corporates has increased significantly. 100 From 2000 to 2006, exports to Russia have risen by 249% from €6.7bn to €23.4bn whilst 50 exports to China by 189% from €9.5bn to €27.5bn. 0 1996 1998 2000 2002 2004 2006 The Eastern European block of new EU entrants now accounts for a greater share of UK France Russia China Source: Thomson Financial, September 2007 German exports than any of France, Italy, the UK or US. 2006 German Exports In 2006, Emerging Markets accounted for

26% of German exports compared to 18.3% USA, 9% a decade ago. According to our survey, German corporates think this figure is set to Asia (non EM), 5% increase further.

“It is easy to see that Eastern Europe has become an Emerging Markets, 26% increasingly important region for Germany. But Russia and Turkey are also extremely dynamic markets for Others, 8% German exporters, and export share to emerging Asia has also been on the rise.” EU-15, 52% Rainer Guntermann, European Economist at Dresdner Kleinwort. Source: OECD, September 2007

11 Globalisation of German Region most important for revenue corporate revenues % Respondents said most important This growth looks set to continue. Whilst five 60 years ago only 3% of respondents thought 50 Emerging Markets and Asia were the most

important regions for revenue now, 34% 40 said that they would be in five years’ time. The growth in revenue share from these 30 new regions will reduce reliance on German 20 and European revenues and, according to

our survey, will result in Germany’s large 10 companies relying almost equally for revenues on the three pillars of Germany, Europe and 0 Germany Europe US Asia Emerging Emerging new markets. Markets Markets including Asia 5 years ago Now 5 years’ time “Overall German companies are very well positioned Source: Dresdner Kleinwort’s The DAX Perspective Survey, December 2007 to take advantage of the growth opportunities in Emerging Markets.” Gunnar Hamann, German Equity Strategist at Dresdner Kleinwort.

Emerging Markets represent greatest What is the greatest opportunity for your business? growth opportunity Our survey results show that customer Rank Opportunities Respondents % demand from Emerging Markets was rated as 1 Customer demand from 26.5% the greatest opportunity for DAX30 and Emerging Markets MDAX companies, well ahead of customer demand from the German market, which is 2 Product innovation 26.5% ranked fourth. 3 New technology 17.6% Senior management’s faith in product 4 Customer demand in the 8.8% innovation is confirmed by the high level of German market German investment in R&D. As a percentage of GDP, it outstrips most other leading economies 5 Strong track record 5.9% including France and the UK (see chart below). 6 Climate change 5.9%

“Our dialogue with German corporates suggests they 7 Globalisation 5.9% have been winners of the phenomenal growth in Emerging Markets, seeing demand for their goods from 8 Talented workforce 2.9% steel to autos to trainers. This trend shows no sign of Source: Dresdner Kleinwort’s The DAX Perspective Survey, December 2007 slowing down.” Michael Pfaff.

Gross domestic expenditure on R&D as a percentage of GDP

3 Germany’s faith in product innovation is reinforced by their high investment in R&D

2

1

0

India Italy EU15 Turkey BrazilSpain China France Korea Japan Mexico PolandGreece Ireland Norway Canada Austria Iceland FinlandSweden Portugal Hungary Australia Belgium DenmarkGermany OECD Total Switzerland South Africa New Zealand LuxembourgNetherlands United States Slovak Republic Czech Republic United Kingdom Russian Federation Source: OECD, December 2005

12 Cost of raw materials and over- What are the three greatest challenges? regulation are top challenges Respondents were asked what they see as Rank Requirement Total points* their three greatest challenges. The high cost 1 Cost of raw materials 42 of raw materials and over-regulation were ranked almost equally. Poor domestic growth 2 Over-regulation 41 also scored highly again, underscoring the trend for German corporates to look outside of 3 Poor domestic growth 27 their domestic market for revenue generation. 4 Environmental factors 18 Notably, environmental concerns are not 5 Currency/exchange rates 17 considered a major obstacle to business growth – and few German companies feel 6 Cost of labour 13 threatened by technical change. It is also interesting that while German corporates 7 Quality of management team 13 view Emerging Markets as a valuable source of 8 Technological change 10 future revenue, few regard them as a source of serious competition. 9 Competition from 9 emerging economies “Recent exchange rate movements may impact German *Weighted by ranking companies: competitiveness of exports could suffer Source: Dresdner Kleinwort’s The DAX Perspective Survey, December 2007 from a stronger Euro, but likewise it could also offset some of the pain from rising commodity prices.” Gunnar Hamann.

The rising cost of raw materials 10 year commodity indices It is not surprising that German companies’ Jul1997 = 100 (Steel index, Jul2000 = 100) key challenge is the rising cost of raw 450 materials. Since 2003 a range of commodities have risen sharply in price, causing pain for 400 many. While a weaker US dollar could reduce this impact, companies are challenged to 350 pass on higher costs to their customers. There 300 again, a weaker US dollar makes it more difficult for exporters, not only those that 250 export to the US but also Asian markets where currencies are pegged to the dollar. 200

“Commodity prices have risen sharply. This might cause 150 problems for companies relying on commodities as a 100 meaningful proportion of their economic expenses. A weaker US dollar could help but companies may well 50 have to pass on higher input costs to customers.” Rainer Guntermann. 0 Jul 97 Jul 98 Jul 99 Jul 00 Jul 01 Jul 02 Jul 03 Jul 04 Jul 05 Jul 06 Jul 07

Oil (WTI 1st month) Copper LME 3 Months SBB World Steel Index London spot gold price Aluminium LME 3 Months

Source: Dresdner Kleinwort, December 2007

13 Dresdner Kleinwort contributors

Rainer Guntermann Gunnar Hamann Dominic Hughes European Economist German Equity Strategist Head of Corporate Broking at Dresdner Kleinwort at Dresdner Kleinwort for Europe (excluding UK) at Dresdner Kleinwort

Frankfurt office Frankfurt office London office +49 (0)69 7131 2052 +49 (0)69 7131 9317 +44 (0)20 7475 2121 [email protected] [email protected] [email protected]

Michael Pfaff Klaus Tanner For press queries: Head of Global Banking Managing Director Louise Beeson for Germany US Equity Sales +44 (0)20 7475 7560 at Dresdner Kleinwort at Dresdner Kleinwort [email protected]

Frankfurt office New York office Michael Goodbody +49 (0)69 7131 5656 +1 212 895 5310 +44 (0)20 7475 3447 [email protected] [email protected] [email protected]

How to build productive relationships with US investors Dominic Hughes and Klaus Tanner offer the following tips to German companies thinking about their relationships with US investors:

• US investors place a lot of significance on having direct contact with senior management, who are critical to winning over US investors. Furthermore, the importance that US investors attach to having trust and confidence in a mangement team cannot be overstated. • US investors are hungry for data on business and financial performance overall. But they also like these figures to be broken down by division, segment and region. They need to be furnished with detailed, up-to- date and convincing information to form their analysis, and to act as compelling evidence before they buy into the corporate story. • Meetings with US investors are most effective if conducted in an open style, perhaps in the form of a Q&A, rather than offering an off-the-shelf PowerPoint. This allows for an investor to pose their priority questions directly. • By way of preparation, consider using a broker to canvass pre-meeting expectations from investors. • Recognise relationships are for the long term. Don’t expect a share purchase to follow immediately after meeting a potential new investor. Most US investors will add a stock to their watch list for a six to nine month period before taking the plunge. Dresdner Kleinwort has developed a practical checklist for German companies looking to build relationships with North American investors. The Really Useful Guide to North American Investors includes recommendations on investors to target, how to run meetings and how to develop a relationship beyond the meeting. Contact Dominic Hughes for a copy.

14 About Dresdner Kleinwort

Dresdner Kleinwort is the investment banking division of Dresdner Bank AG and a member of the Allianz Group with headquarters in London and Frankfurt, and an international network of offices. We offer a wide range of financial products and services to European and international clients through our Global Banking and Capital Markets business lines.

Dresdner Kleinwort’s unique annual German Investment Seminar has grown tremendously in size and stature in the last ten years. For this 10th anniversary event we expect 54 German companies and over 500 US-based investors to attend – including pension funds, mutual funds and hedge funds from every region across the US and Canada. Feedback consistently shows that senior management of German companies consider our seminar a ‘must’ date in their calendars. It gives them the opportunity to meet a variety of their existing and potential new US investors in a single location and time efficient manner. Likewise, as the largest German country event organised in New York, for US investors this is an important chance to have access to the crème-de-la-crème of corporate Germany from across a range of sectors. In 2008, we anticipate that over the three days of our GIS event, we will host 1,500 one-to-one meetings between German corporates and US investors.

Our survey report shows the need for such meetings and such dialogue between German corporates and US investors will only increase in the future. Dresdner Kleinwort is pleased to be able to assist clients from both communities in this respect and to act as a facilitator of the relationship of our German corporate and US investor clients – both at our annual January event and also throughout the year – thanks to the services of the experts in our German corporate broking, client relationship management and US equity salesforce teams.

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Dresdner Kleinwort is the investment banking division of Dresdner Bank AG and a member of Allianz. Dresdner Kleinwort Limited, 30 Gresham Street, London, EC2V 7PG. Authorised and regulated by the Financial Services Authority. Dresdner Bank AG is authorised and regulated by the Federal Financial Supervisory Authority (‘BaFin’) by the laws of Germany. In the US, any banking services are provided by Dresdner Bank AG New York Branch and/or Dresdner Bank AG Grand Cayman Branch. Any securities related business is provided by Dresdner Kleinwort Securities LLC, a registered broker dealer and member of the Financial Industry Regulatory Authority (FINRA).

Printed December 2007 16