PRIVATE EQUITYNewsletter QUARTERLY SPECIAL | EDITION 3/2018

CLOSED DEALSin Q1-Q3/2018 within the German-speaking region

NEW DEAL FLOWJanuary 2017 - September 2018in German-speaking region

MOST RECENT STUDIESby Roland Berger

Private Equity NewsletterQuarterly Special | Edition 3/2018

Roland Berger2

The third quarter has already passed and year-end is slowly approaching. We hope your recent months have been successful and promising opportunities have already been identified. This edition of our Private Equity Newsletter provides an overview of the deal-flow in the third quarter of 2018, looks at various developments influencing the private equity market and provides an overview of re-cent Roland Berger studies.

PE-related deal activity in the DACH region has proven resilient in 2018YTD, being reflected in 136 closed deals; nevertheless, this is somewhat lower compared to the record year 2017 (with 157 closed deals by end of Q3). New deal-flow has held up well since the beginning of 2018; in Q3/2018, there have been 61 deals being closed or currently being in the M&A process and there are indications for a positive outlook for the remaining year 2018. In terms of industries, deal activity has been high-est in Engineered Products, IT/Telecommunication and Consumer goods; on the contrary, Energy and Transportation showed only weak deal activities, reflecting the increasing challenges within these segments.

From a wider political perspective, uncertainty remains a key concern for the private equity com-munity: The risk of further escalation in the trade war between the US and China as well as addition-al tariffs on European products (e.g., cars) persist, potentially having a direct negative implication on PE funds’ portfolio companies. The result of the Brexit negotiations remains unclear. A hard Brexit would mean extra tolls that might hit, especially the German automotive industry. Turkish economic crisis and political instability in Italy may further rattle the global markets and raise concerns of in-vestors. Capital markets have remained strong so far, but recently experienced some decline, also leading economic-research institutes have lowered their forecast for economic growth in Europe due to the weakening global economy.

Recent studies by Roland Berger discuss the final stage of the transformation through the publi-cation “Procurement endgame”. The publication “The future of trucking: Challenges for the trans-portation sector” and a brand-new edition of the “Automotive Disruption Radar”, focusing on the Chinese increasing demand for disruptive mobility services address the automotive industry. Fur-thermore, we want to highlight the study “Millennials im Supermarkt” addressing changes of cus-tomer behavior driven by the important target group of millennials. The recent publication “Corpo-rate Headquarters Study 2018” analyzes the megatrends that are shaping the future core competencies of corporate headquarters.

Roland Berger’s Investor Support Practice wishes you well for your portfolio companies and a good flow of leads for successful transactions, on which we will be eager to support you.

Yours sincerely

Christof Huth

Marc Hesse

Dr. Thorsten Groth

Dr. Gerd Sievers

Dr. Sascha Haghani

Christof Huth

Sven Kleindienst

Dr. Gerd Sievers

MarcHesse

Dr. Sascha Haghani

Dear Friends, dear Clients,

Dr. Thorsten Groth

Sven Kleindienst

Private Equity NewsletterQuarterly Special | Edition 3/2018

Roland Berger3

CLOSED DEALS IN GERMAN-SPEAKING REGION 2001 - 2018 YTD# closed PE-relevant dealsSource: Roland Berger

2001

40

2002

74

2003

81

2004

104

2005

10020

17

2018

YTD

204

136

2006

163

2007

166

2008

122

2010

136

2011

113

2012

12520

15

161

2016

168

2013

110

2014

119

2009

79

Closed deals for the first three quarters of 2018

The number of closed deals in 2018 amounts to 136, slightly behind the previous year’s level of 157 PE-backed acquisitions in the first three quarters. With respect to the third quarter of 2018, the number of closed deals has been 35, being slightly lower compared to Q2/2018 (with 37 closed deals).

Up to September 2018, the leading deal makers in terms of number of deals were Waterland Private Equity Investments with 5 deals each, followed by Capiton and Nordic Capital with 4 deals each, as well as Auctus Capital, EQT, Finatem, Paragon Partners, Ufenau Capital Partners, Verdane Capital with 3 deals each.

Deal activity in the first three quarters of 2018 remains good

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Roland Berger4

The first three quarters of 2018 have seen a continu-ously strong deal-flow with 376 deals, compared to 349 deals in the first three quarters of 2017, Q3/2018 developed slightly stronger with 118 deals compared to 102 deals in Q3/2017, result-ing in another period with a high level of PE activity in the DACH region. Many of the 34 new targets in Sep-tember are still ongoing, in-dicating a positive outlook for the final quarter of 2018.

DEAL FLOW PER MONTH IN GERMAN-SPEAKING REGION – STATUS SPECIFIC Jan 2017 - Sep 2018 | # deals by status | Source: Roland BergerAlso includes announced but not yet fully completed deals1

Current

Withdrawn

Rumored

Dormant

Closed

2017

2018 YTD

146

Mar

23

8

12

43

Feb

16

6

37

59

Jan

11

33

44

101 102 115

Jun

16

2

19

37

Sep

15

5

31

51

Dec

7

1

25

33

Mai

19

3

15

37

Aug

4

15

19

Nov

14

19

15

48

Apr

14

13

27

3

Jul

12

17

32

6

7

21

34

Oct

1 The difference in “closed” deals in the deal flow statistic (on this page) compared to the “closed deals” statistic (on the preceding page) is due to the time delay between an-nounced deals (in deal flow statistic) and legally closed and signed deals (in closed deals statistic) 118 118140

Jun Sep

22

13

3

3

14

18

39

34

Mar

10

83

17

35

May Aug

1813

8

14

15

40

28

Feb

35

6

26

67

Apr Jul

10

25

26

3039

56

Jan

11

26

38

1

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Roland Berger5

DEAL FLOW PER MONTH IN GERMAN-SPEAKING REGION – INDUSTRY SPECIFIC Jan 2017 - Sep 2018 | # deals by industry | Source: Roland Berger

IT/Telecoms

Transportation

Other

Automotive

Chemicals

Consumer goods

Engineered products

Healthcare

Energy

Jan

6

3

5

2

6

4

9

9

44

146 101 102 115

Feb

6

17

11

6

7

4

59

5

3

Mar

4

5

4

13

11

1

43

4

1

7

15

51

27

Apr

6

2

Mai

5

8

4

9

42

37

1

1

3Jul

4

41

8

7

2

32

1

5

Oct

3

7

3

5

11

34

5

8

5

7

Sep

10

16

51

14

4

8

7

1

10

33

3DezAug

4

5

2

1

41

191

1

3

6

6

9

14

2

48

2

1

5

Nov

3

7

6

Jun

4

11

1

37

1

4

The PE market in the DACH region continues to see most activity in the seg-ments Engineered Products as well as Consumer goods (112 and 67 targets, respec-tively in the first three quar-ters of 2018). In addition, an increased deal activity in the IT/Telecommunication seg-ment has been observed in 2018, also including some larger transactions, e.g., SUS Linux GmbH/EQT Partners. Furthermore, the Health-care industry continuously displays a constant deal flow relevant to the PE in-dustry. On the contrary, the Transportation and Energy segment remains at a rather limited level of deal flow.

2017

118 118140

7

77

14

6

9

6

10

15

39

56

37

Apr Jul

3

7

6

6

10

38

1

2

3

Jan

21

6

1

5

2

8

88

7

1211

40

28

21

1

15 451

May Aug

8

5

41

14

21

1

67

4

9

Feb

6

2

1

3

4

7

3

4

10

9

39

34

Jun Sep

7

2

2

7

14

35

2Mar

11

3

2018 YTD

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Roland Berger6

TARGETTARGETISPINItertalklinik SeniorenzentrumKA InteriorKAMA GmbHKBL AGKlinikzentrum Muehlengrund Bad WildungenKMLS GmbHKnauer-UniplastKorona CandlesKytoLanger & Laumann Ing.-Büro GmbH

Larsen Indoor Light Concept GmbH & Co. KGLautsprecher TeufelLearnship Networks GmbHlifebrainLinimed GmbHLogisMagixMaschinenbau HebrockMedical One GmbHmefro wheelsMeinAuto GmbHMEN Mikro Elektronik GmbHMetanomics Health

minCamMungo Befestigungstechniknavabi GmbHNL-Holding OberScharrer GroupOskar NoltePerconex GmbHPERLKÖNIG Perlen & Schmuck & ZubehörPferdeklinik GrosswallstadtPhoenix Metall GmbHPiz‘Wich EuropePloucquet

Prime Research

Procrea GroupProspitaliaRaetz GerüstbauRasselstein Raumsysteme GmbHRatioparts Ersatzteile-Vertriebs GmbHRECAT GmbH

Repair Concepts

Robert BuerkleRodenstock GmbHSauter FedernSchletterSchroth Safety ProductsSecura Industriebeteiligungen AGSilexicaSimply Logistics SystemssmavaStarz surf4shoessvt HoldingSwiss Education GroupSwiss Medical Imaging Investment SASwyx SolutionsTENADOThe Packaging GroupThurn Produkte GmbHTönsmeier GroupUNICEPTA Gesellschaft für MedienanalyseUnited Grinding GroupVTU Holding GmbHWuppermann

50Hertz Transmission GmbH7days Marc Staperfeld ABO Filtertechnik NordACT IT Holding GmbHAEMtecAGVS HoldingAir Alliance GmbHAlbrecht & Dill CosmeticsAllgeier Medical ITAlloheim Senioren ResidenzalphaBit GmbH

ALVI - Alfred ViehhoferAmann Girrbach AscoraASIC RoboticsAtteroAVS VerkehrssicherungBauwerk BoenBBS AutomationBeam Shop GmbHBetter TasteBFC Fahrzeugteile (Project Intercut)BiofidesBosch Mahle TurboBOTABrugg KabelCareerFoundryCasekingCBR Holding GmbHCEMARCeramTec

ChainMaster Buehnentechnik GmbH

coeo Inkassocompassio

Competence Call CenterConcept

CONET Technologies (Project Hawk)copperING

Copytrend Holding AGdatadirect GmbHDEINZER GmbHDermedis GmbH & Co. KGdetailM GmbHDFG Deutsche Fachpflege GruppedoctariDornier Consulting InternationalDPG Deutsche Pflegegruppeebm MaschinenbauEMS Elektro Metall Schwanenmuehle GmbHESIM ChemicalsETC - Enterprise Training CenterFairConnect SAFEBA AutomationFLS GmbHFranke IndustriesFutura Retail Solutions AGGermanFlavoursGermanPersonnel e-searchGfS GmbHGiesserei AlbbruckGothaer FahrzeugtechnikGreif-VeloxH. Vollmer

HansefitHeizkurier

HFPIBYKUS AGInfoniqa PayrollIPAN

BUYERBUYERMBO (Capiton)Alloheim Senioren Residenzen (Nordic Capital)Vivonio Furniture (Equistone Partners)Premium Equity PartnersDIH Deutsche Industrie-Holding GmbHWaterland Private Equity Investments B.V.

Syngroh Capital GmbHBlue CapGALA Kerzen (Equistone)VerdaneOdewald KMU Gesellschaft fuer Beteiligungen mbHLDBS Lichtdienst GmbH (Beyond Capital Partners GmbH)NaxicapTHI Investments GmbHInvestIndustrialGHO Capital PartnersIT Beteiligungs (Alpina)capitonWilhelm Altendorf (Avedon Capital Partners)MediDate (Earlybird Venture Capital)Accuride Corporation (Crestview Partners)Hg Capitalduagon (DBAG)Biocrates Life Sciences AG (ARAX Capital Partners GmbH)Harald Quandt IndustriebeteiligungenFinatemVerdane Capital Advisors ASOaktree Capital Management LPNordic CapitalPeter MoehrleKieger AGMaxburg Capital PartnersAltano Gruppe (Ufenau Capital Partners)Fidelitas Industrieholdingfrostkrone Tiefkühlkost (EMERAM)CONSTANTIA Beteiligungs (CBAG) and TECHTEXTechntex GmbH & Co. KG, Constantia Beteiligungs AGNL-Holding (Oaktree)Nordic CapitalB+P Group (AURELIUS)BWK GmbHInvestcorp/The Riverside CompanyElemental Holding S.A., FINEX SICACV SIF S.A. - Private Equity VIIFair Damage Control Holding (Ufenau Capital Partners)AUCTUS Capital PartnersCompass Partners (Bridgepoint Capital)Pinova CapitalGolden Square CapitalPerusa PartnersPerusa GmbHEQTFloris Capital GmbHVitruvian Partners, Runa CapitalNorthCapitalHR Group (Capiton)ErgonSummer CapitalRAD-x (Gilde Healthcare Partners B.V.)Waterland Private Equity Investments B.V.Maxburg CapitalHQ EquitaQuantum Capital Partners AGGreenCycle (Part of Schwarz Group)Paragon Partners

Martin Ebner-led investor groupDPE Deutsche Private Equity GmbHLafayette Mittelstand Capital

KfW BankengruppeSliverfleet Capital Partners LLP(Waterlogic GmbH) Castik Capital S.a.r.l.Conet / HIG CapitalCapitonSüd Beteiligungen GmbHDPE Deutsche Private Equity GmbHECM Equity Capital Management GmbHRVC (MainCapital)Nordic Capital(Swiss IT Security AG) Ufenau Capital Partners AGNoppies, Vendis CapitalCapvisDRS InvestmentParagon PartnersDWS and 3iTritonEGS Beteiligungen AGEQTSaltation BeteiligungsgesellschaftAURELIUSTrtionPharmalex (Auctus Capital)FountainVestchicco di caffe (Paragon Partners)(SOLIFOS AG) HVD PartnersVerdaneGildeAlteri Partners LLPThink project! (TA Associates)BC Partners Limited, Ontario‘s Pension Plan, Public Sector Pension Invesmtent BoardLiftket (Afinum Siebte Beteiligungsgesellschaft)Waterland Private Equity Investments B.V.Schones Leben Group, Waterland Private Equity Investments B.V.ArdianMB Mittelständische BeteiligungsgesellschaftH.I.G. Capital PartnersGehring Technologies GmbH (Penta Investments Limited)Helvetica Capital AGFernao Networks (Auctus Capital Partners)Leo Family Holding GmbHRigeto Unternehmerkapital GmbHArcus CapitalAdvent InternationalVitruvianPalero CapitalBregalWilhelm Altendorf (Avedon Capital Partners)A Luxembourg-based Family OfficeSun European PartnersAspire Education Group (Quadriga)Palamon Capital PartnersPiab Invest AB (EQT Partners)DBAGEuropoles (VTC)Elvaston Capital ManagementFlavourtec (Tar Heel Capital)RiversideFinatem FondsNavigator CapitalFinatemBPE Private Equity GmbHLDBS Lichtdienst GmbH (Beyond Capital Partners GmbH)Waterland Private Equity Investments B.V.Odewald KMU Gesellschaft fuer Beteiligungen mbHNORD Holding/GradienteVM Capital Advisors GmbHElvaston Capital ManagementCastik Capital

DEALS CLOSED IN Q1-Q3/2018 WITHIN THE GERMAN-SPEAKING REGION

Private Equity NewsletterQuarterly Special | Edition 3/2018

Roland Berger7

Presenting Roland Berger’s most recent studies

Procurement has entered the final stage of transformationProcurement is in the midst of a phase of intense change: disruption in key industries is posing new challenges and requirements for the function, while internal forces such as digitalization and automation are turning traditional processes on their head, creating exciting new opportunities for those bold enough to embrace the transformation. The endgame for procurement has begun and to win it companies will need to sketch their own roadmaps, based on their specific circumstances and demands.Roland Berger has identified six core questions that CPOs now have to answer: What does the procurement end-game look like? What performance level does the business require from you in the near and distant future? What are your relevant future scenarios? Where are you today? What is an ambitious and realistic target for you? How do you get there?This study gives assistance to answer these questions and introduces distinct steps to support CPOs to navigate successfully through the final stage of transformation and beyond.

The future of trucking: Challenges for the transportation sectorTrucking is the leading mode of freight transportation in many parts of the world, including United States, Europe and China. But the industry is vexed by issues such as fragmentation, inefficiency, underutilization of trucks, diffi-culties recruiting new drivers and tightening regulations on emissions.Fortunately, several trends that are currently visible in the industry offer solutions to these issues. Vehicle automa-tion, electrification and digitalization will radically change the trucking industry over the next decades, allowing it to shift up a gear. New business models will emerge, such as the transfer hub model, combining driverless trucks on specific highway routes with conventional trucks for the first and last mile off the highway. The resulting oper-ating cost savings will be significant, shaving 20 to 40 percent off today’s costs.In this study, Roland Berger examines the details of these technological changes and the impact they will have on the industry. Furthermore, this report suggests some key steps to define strategic directions and enables industry participants to ensure that they stay ahead of the pack as the industry shifts up a gear.

Automotive disruption radar (#4) – China speeds aheadSince 2017, Roland Berger has been charting a concept of mobility in transition with its semi-annual Automotive Disrup-tion Radar (ADR). The current fourth edition confirms the main developments: more and more people think that using a car does not necessarily mean that you have to own one, consumers can increasingly imagine buying a car with electric drive and more and more cities are granting permits to trial autonomous vehicles on their streets.The study also shows that China, the world’s largest car market, has extended its lead over its rivals when it comes to new “disruptive” mobility services such as autonomous driving and car sharing. Scores, calculated using 26 industry indices, give an indication as to which country will be first to introduce autonomous mobility. China surged ahead thanks to its leading market position in electric vehicles, accounting for more than half of the 700,000 electric vehicles sold worldwide. It also benefited from a more open regulatory environment.Furthermore, it can be stated that still no mobility brand dominates the global market, with none known to a majority of people. Uber rates highest, known to 46% of survey respondents. The battle to be the “Coca-Cola” of mobility services is yet to be won.

Private Equity NewsletterQuarterly Special | Edition 3/2018

Roland Berger8

For further information, questions or remarks please contact:

ROLAND BERGER GMBHInvestor Support, Sederanger 1, 80538 Munich, GermanyJosipa Gotovac, Phone +49 89 9230-8250, Fax +49 89 5485-8250, josipa.gotovac@rolandberger.com

Millennials as important target group in the food retail sector (German only)One in four Germans belongs to the age group of 18- to 38-year-olds: the so-called millennials. An important target group whose buying patterns are very different from that of other consumers. They inform themselves much more frequently in the internet, use apps from retailer and order more often online. For food retailing this trend creates some significant opportunities.The study by Roland Berger shows, how millennials can be won and bind. Therefore, more than 2,000 consumers where questioned about their grocery shopping, eating habits and brand engagements.The results show, that once won, millennials are a very loyal buyers group that informs itself extensively online before making purchasing decisions. Online and mobile distribution channels are crucial, as shown by the high in-tensity of use and the parallel use of multiple devices.To address this purchasing behavior, food retailers need to put great effort into innovations and personalization along the cross-channel customer journey.

Corporate headquarters - between claim and realityMegatrends are shaping the future core competencies of corporate headquarters. Closing the gap between ambition and realistic goals is critical – particularly in the area of digital transformation.The Roland Berger 2018 Corporate Headquarters study questioned more than 300 executives from the head offices of companies across various industries in 11 different countries on these topics.It is no surprise that the study identified digital transformation and power of innovation as the biggest impacts on the design of corporate headquarters and highly influence the capabilities of strengthening innovation, managing complexi-ty and providing strategic direction.Furthermore, a large gap between the level of actual application of digital technologies and their potential impact on corporate headquarters can be observed. Companies that perform better within their peer group have a higher level of digital technology application.The survey also confirms the ongoing decentralization tendency as the trend towards shared service centers and sprea-ding corporate headquarter functions across several organizational units continues.