TFG makes further write-downs

01 February 2002

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SDAX-listed TFG Venture Capital AG & Co KGaA charged further write-downs of EUR 48.2m on its investment portfolio in Q4 2001. The main reason for this new value adjustment was sharp falls in the share prices of its listed investees. The book loss of EUR 11.3m on the strategic investment in Concord Effekten alone accounts for almost a quarter of the adjustment. In addition, the residual book values of Gastrofix AG and Inline AG were also written off, after both companies filed for bankruptcy in Q4. Furthermore, the continuing weak economic situation in the second half of the year saw a number of other investees fall well short of their targets. â€˜In these specific circumstances, we will not continue to finance them as sole investor. If no other investors can be found, this decision may lead to further bankruptciesâ€™, warned managing board member F Michael Stallmann. These companies were also written off completely. Together with the adjustment made at the mid-year point, TFG wrote down its portfolio by around EUR 105.2m in 2001.

As a result of the weak financial environment, revenues in the past fiscal year dropped significantly to a total of EUR 13.5m. The result for the 2000 comparative period was EUR 88.7m. EBIT were unable to maintain the positive results of the first nine months of the year. EBIT, at EUR 1.2m (previous year: EUR 31.0m), slid into negative territory as a result of bad debt losses. The operating loss - including the high write-downs - widened. The DVFA/SG net loss (excluding associated companies) was EUR 104.7m or EUR 9.52 per share. The net asset value in accordance with the EVCA guidelines fell in comparison with Q3 2001 by EUR 39.4m to EUR 80.7m because of the write downs. This corresponds to a value of EUR 7.34 per share, compared with a value of EUR 10.92 per share in the previous quarter. The Companyâ€™s net cash outflow consists mostly of investment commitments and new investments. Cash reserves decreased only slightly in the fourth quarter, by EUR 2.0m. TFG currently has access to over EUR 34.4m in cash reserves. At EUR 3.12 per share, the cash cover for the share price level is currently approximately 75%.