Germany Investment Banking Review First Quarter 2021 Refinitiv Deals Intelligence 1 An LSEG business QUARTERLY HIGHLIGHTS GERMANY INVESTMENT BANKING ACTIVITY HIGHLIGHTS M&A FEES DOWN -24% M&A TOP FINANCIAL ADVISOR YTD JP Morgan ECM FEES UP 472% DCM FEES UP 59% ECM TOP BOOK RUNNER YTD Goldman Sachs & Co LOAN FEES DOWN -22% DCM TOP BOOK RUNNER YTD ANY INV. M&A DOWN -49% Deutsche Bank TARGET M&A DOWN -58% M&A TOP TARGETED INDUSTRY ECM PROCEEDS UP 209% Retail DCM PROCEEDS UP 21% DCM TOP ISSUING ECM TOP ISSUING Click on any of the above arrows to INDUSTRY INDUSTRY go straight to the analysis. Government and Retail Agencies CLICK BELOW TO SIGN UP FOR OUR NEWSLETTERS, PURCHASE CUSTOMIZED DATA OR FOLLOW US ON SOCIAL MEDIA: 2 An LSEG business REPORT SUMMARY INVESTMENT BANKING FEES Investment Banking fees in Germany produced a combined total of US$1 billion in Q1, a 52% increase in value compared to the same period last year and the highest year-to-date total since 2006. Merger & Acquisition Fees totalled US$163.1 million, a 24% decrease compared to the same period in 2020 and a two-year low in M&A fees. German M&A fees made up 16% of overall German Investment banking fees, the lowest proportion of fees since 2000 where German M&A fees made up 7% in Q1. ECM underwriting fees which accounted for 30% of the German investment banking fee pool so far this year, totalled US$313 million, the highest total since 2000 and up 472% from the same time last year. DCM underwriting fees increased 59% to $467.3 million, from a year ago, the highest first quarter total on record. Syndicated lending fell 22% from last year to US$89.5 million. JP Morgan takes top spot in the German Investment banking fee league table with US$95.4 million in related fees or a 9.2% wallet share. Deutsche Bank takes second place, with 8.4% market share while Morgan Stanley takes third with 7% market share. MERGERS & ACQUISITIONS Announced M&A with any German involvement totals US$29.5 billion in 2021 so far, a decline of 49% in value compared to the same period last year and the lowest total since 2017. Deal-making involving a German target fell 58% by value to US$18.4 billion with German target M&A failing to recover since the start of the new year. Domestic German M&A saw a increase from 2020 with US$9.8 billion in deal value, up 21% from the same period last year and a three-year high. Announced mid-market M&A with German involvement totals US$9.2 billion so far during 2021, representing a 20% increase compared to the same period in 2020. Healthcare was the best performing industry in the Mid-market with US$1.6 billion in deal value, an increase of 76%. This was closely followed by Financials and Industrials with US$1.5 billion and US$1.4 billion in deal value, respectively. JP Morgan, takes top stop in the any German involvement financial advisor league table, advising on US$8.1 billion worth of deals, or a 28% share of wallet. Skandinaviska Enskilda Banken (SEB) and Goldman Sachs follow in second and third positions, respectively. EQUITY CAPITAL MARKETS German equity capital markets raised US$14.3 billion in Q1 2021, up 209% compared to the same time last year and the best start to the year since 2000. Initial public offerings raised US$6 billion, a positive sign for the German equity market and a three-year high for German IPOs in Q1. 38% of equity proceeds came from one of the largest IPOs in Europe this year with Vantage Towers IPO raising US$2.3 billion and Germany’s largest IPO since October 2018 where brake manufacturer Knorr-Bremse’s IPO raised US$4.4 billion. The largest deal of the quarter was the US$2.7 billion follow on offering from healthcare company Siemens Healthineer AG. Follow-on offerings saw a busy start to the year with the number of issues up 237% to US$8.2 billion, the highest total since 2004. The largest deal of the quarter was the follow-on offering from Healthcare company Siemens Healthineer AG raising US$2.7 billion near the end of Q1. Goldman Sachs take the top spot in the Germany ECM league table with US$1.2 billion in related proceeds, or a 9% market share. Deutsche Bank take second spot, with 8% market share, followed by Berenberg in third place with 7% market share. DEBT CAPITAL MARKETS Debt issuance in Germany totals US$153.8 billion so far this year, a 21% increase compared to the same period last year. German High Yield corporate issuance reached its highest total on record with US$8.8 billion issued in Q1, an increase of 151% from the same period in 2020. Governments and agencies continue their dominance in the bond market accounting for 51% of DCM proceeds and 12% increase from the same period last year. The largest issuance of the quarter was Siemens bond offering of US$9.9 billion. Deutsche Bank take the top spot for the Germany DCM league table with US$13.6 billion in related proceeds and a 9% market share. Commerzbank & JP Morgan take second and third spot, respectively. 3 An LSEG business BACK TO GERMANY HIGHLIGHTS INVESTMENT BANKING FEES PAGE TOP FEE PAYING INDUSTRIES INVESTMENT BANKING FEES VOLUMES YTD Fees 17% 1,200 30% Financials 21% 1,000 Government and 38% • Outer Rim: YTD Agencies 800 • Inner Rim: YTDLY 16% Industrials 17% 600 Retail US$ Million 400 6% 11% 5% 13% ` 200 13% High Technology 13% 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Other INVESTMENT BANKING FEES BY ASSET CLASS YOY FEE GROWTH BONDS EQUITY LOANS MA 500 Retail 450 400 High Technology 350 Industrials 300 250 Government and Agencies 200 Financials US$ Million 150 100 Other 50 0% 50% 100% 150% 200% 250% 300% 350% 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 YoY Growth 4 An LSEG business BACK TO GERMANY HIGHLIGHTS MERGERS & ACQUISITIONS PAGE TOP TARGETED INDUSTRIES ANY INVOLVEMENT M&A VOLUMES & NUMBER OF DEALS YTD Volumes #Deals 11% Retail 90,000 1,200 6%3% 8% 6% 80,000 Industrials 1,000 6% 38% 70,000 • Outer Rim: YTD 8% High Technology 60,000 800 • Inner Rim: YTDLY 10% 50,000 600 40,000 Energy and Power 71% US$ Million 30,000 400 16% Real Estate 20,000 200 10,000 17% Other 0 - 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 TARGET M&A VOLUMES & NUMBER OF DEALS YOY GROWTH BY INDUSTRY YTD Volumes #Deals Other 80,000 700 70,000 600 Real Estate 60,000 500 Energy and 50,000 Power 400 High 40,000 Technology 300 30,000 US$ Million Industrials 200 20,000 10,000 100 Retail 0 - -200% -100% 0% 100% 200% 300% 400% 500% 600% 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 5 An LSEG business BACK TO GERMANY HIGHLIGHTS MERGERS & ACQUISITIONS PAGE INBOUND M&A DOMESTIC M&A OUTBOUND M&A Inbound M&A down -76% from YTD last year, Domestic M&A up 21% from YTD last year, accounting Outbound M&A down -50% from YTD last year, accounting for $8.6 Billion so far this year. for $9.8 Billion so far this year. accounting for $6.6 Billion so far this year. YTD Volumes #Deals YTD Volumes #Deals YTD Volumes #Deals 40,000 300 50,000 300 25,000 200 250 30,000 40,000 20,000 150 200 200 15,000 20,000 150 30,000 100 10,000 100 20,000 US$ Million 50 10,000 100 US$ Million 5,000 50 US$ Million 10,000 0 - 0 - 12 13 14 15 16 17 18 19 20 21 0 - 12 13 14 15 16 17 18 19 20 21 12 13 14 15 16 17 18 19 20 21 INBOUND M&A VOLUMES OUTBOUND M&A VOLUMES TOP ACQUIRING NATIONS TOP TARGETED NATIONS US$ Million US$ Million 0 5,000 10,000 15,000 20,000 25,000 0 2,000 4,000 6,000 8,000 10,000 5,213 3,227 United States of America Poland 20,738 123 1,004 1,899 Switzerland United States of America 613 8,244 287 398 Belgium Italy 8 0 2021 2020 2021 2020 6 An LSEG business BACK TO GERMANY HIGHLIGHTS MERGERS & ACQUISITIONS PAGE ANY INVOLVEMENT MID-MARKET M&A VOLUMES TOP TARGETED INDUSTRIES YTD Volumes #Deals 16,000 1,200 14,000 1,000 17% 12,000 21% 800 10,000 Healthcare 15% 12% 8,000 600 7% Financials 6,000 • Outer Rim: YTD US$ Million 400 4,000 • Inner Rim: YTDLY 17% Industrials 200 26% 18% 2,000 14% 0 - High Technology 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22% Real Estate ANY INVOLVEMENT MID-MARKET M&A LEAGUE TABLE (US$MIL) 15% 16% Other SHARE BANK NAME RANK VALUE (US$ MIL) RANK # DEALS (%) JP Morgan $ 552.1 1 6.0 5 KPMG $ 492.1 2 5.3 8 Moelis & Co $ 400.0 3 4.3 2 Morgan Stanley $ 398.1 4 4.3 1 Citi $ 317.1 5* 3.4 5 Rothschild & Co $ 317.1 5* 3.4 8 Nordea $ 301.9 7 3.3 1 Goldman Sachs & Co $ 286.0 8 3.1 6 BofA Securities Inc $ 231.3 9 2.5 1 Jefferies LLC $ 190.0 10 2.1 3 Industry Total $ 9,247.4 100.0 702 7 An LSEG business BACK TO GERMANY HIGHLIGHTS MERGERS & ACQUISITIONS PAGE ANY INVOLVEMENT M&A TOP DEALS YTD Ranking Rank Target Acquiror Acquiror Status Target Name Target Industry Target Advisors Acquiror Name Acquiror Advisors Value ($Mil) Date Nation Nation Industry 6,640.8 Pending 02/17/2021 Zalando SE Germany Retail SEB Shareholders Germany Financials Aviva PLC-Polish 2,940.9 Pending 03/26/2021 Poland Financials JP Morgan Allianz SE Germany Financials Goldman Sachs & Co Business JP Morgan Securities LLC 2,444.0 Pending 03/30/2021 Lilium GmbH Germany Industrials Citi Qell Acquisition Corp United States Financials Barclays Capital Inc Media and Goldman Sachs & Co 1,168.9 Pending 02/05/2021 SpotXchange Inc United States JP Morgan Magnite Inc United States High Technology Entertainment LUMA Partners LLC 1,145.2 Intended 03/30/2021 Scout24 AG Germany High Technology Scout24 AG Germany High Technology Goldman Sachs & Co Emerald Kalama Morgan Stanley 1,040.0 Pending 02/14/2021 United States Materials Lanxess AG Germany Materials JP Morgan & Co Inc Chemical LLC Jefferies & Co Inc Energy and Berenberg 885.8