Gehlen Bräutigam Capital - Small Caps. Great Value.

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Gehlen Bräutigam Capital - Small Caps. Great Value.
Gehlen Bräutigam Capital
                          Small Caps. Great Value.

Equities fund focused on deeply undervalued European small & micro caps
Gehlen Braeutigam Value HI; ISIN: DE000A2JQHQ2 (R) / DE000A2N8119 (I)
January 2020

                                    Presentation suitable for professional investors and eligible counterparties.   Presentation suitable for professional investors and eligible counterparties.
Gehlen Bräutigam Capital - Small Caps. Great Value.
Small Caps. Great Value? Exactly!

         •      Small & micro caps make up the largest segment by number of listed companies. However, they are at the same time the most neglected
                amongst investors despite the fact that this segment promises the highest returns for long-term investors

         •      With the Gehlen Braeutigam Value HI we have developed a tailored and strictly limited solution in order to most effectively exploit the
                high return potential of this extremely attractive market segment together with our co-investors

         •      The Gehlen Bräutigam Capital GmbH was founded in 2018 as a specialized fund boutique. It acts as the initiator and advisor to the European
                equity fund Gehlen Braeutigam Value HI

Note: The prospectus and other investor information about the Gehlen Braeutigam Value HI fund can be found at www.hansainvest.com.

                                                                                                                                     Presentation suitable for professional investors and eligible counterparties.
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Gehlen Bräutigam Capital - Small Caps. Great Value.
Passionate value investors …
High-performing, experienced team

                                      Daniel Gehlen                                                                           Marc-Lennart Braeutigam

 •   Since July 2017: Founder and Managing Partner of Gehlen Bräutigam Capital GmbH              •   Since July 2017: Founder and Managing Partner of Gehlen Bräutigam Capital GmbH

 •   2015 – 2017: Investment banking at Barclays in Frankfurt. Advised German and                •   2015 – 2017: Investment banking at Barclays in London. Origination and execution of
     European corporates as well as private equity investors on strategic decisions with a           equity capital markets transactions (IPOs, rights issues, block trades) for corporates as
     focus on mergers and acquisitions                                                               well as private equity investors in the German-speaking and broader EMEA region

 •   Previously, investment banking at Goldman Sachs, portfolio management (European             •   Previously, investment banking at UniCredit, portfolio management at a value investing
     small and mid cap equities) at Union Investment as well as equity and macro research            boutique and equity capital markets as well as equity research and equity sales at
     at DZ Bank                                                                                      Commerzbank

 •   Studied at London School of Economics (MSc Finance, 2015 best student of the year)          •   Co-op degree programme with Commerzbank at DHBW Stuttgart (BA Hons) and the
     and at Frankfurt School of Finance and Management (BSc) as well as Harvard                      University of California in San Diego, including two academic studies on value
     University and MIT                                                                              investing

                                                                                                                                Presentation suitable for professional investors and eligible counterparties.
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Gehlen Bräutigam Capital - Small Caps. Great Value.
… focused on deeply undervalued European small & micro caps
Investment philosophy

                                    •   Actively managed public equities fund, focused on deeply undervalued European small & micro caps

                                    •   Bottom-up selection of single stocks

     What is the                    •   High conviction, concentrated portfolio consisting of 20 – 30 single stocks
       fund?                        •   Independent, not benchmark driven

                                    •   Alignment of interests through co-investments from Daniel Gehlen and Marc-Lennart Braeutigam

                                    •   Limitation of fund volume to c. € 100m (-R- & -I- class are currently open for investments)

                                    •    Long-term oriented deep value approach

                                    •    Focus on value characteristics and contrarian situations in the idea generation process

                                    •    High effort in the selection of single stocks through in-depth due diligence
      How is it
                                    •    Supported by industry experts, including from our own investor base
     managed?
                                    •    Tailor-made financial models, always based on conservative assumptions

                                    •    Buying at substantial fundamental undervaluation (margin of safety of at least 30 – 40%)

                                    •    Investments only in industries and companies we are able to understand

                                                                 Our goal is to profit from the highest possible value growth in the long-term

Note: The prospectus and other investor information about the Gehlen Braeutigam Value HI fund can be found at www.hansainvest.com.

                                                                                                                                           Presentation suitable for professional investors and eligible counterparties.
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Gehlen Bräutigam Capital - Small Caps. Great Value.
We find value where others see none!
Differentiated positioning in the asset management landscape
    Growth

                                       “Small cap specialists”                                                    “Active core”
                                              Focus on                                                      Main playing field for most
                                         hidden champions                                                     institutional investors
    Quality

                                                                                      “Value specialists”
    Value

                      Gehlen Bräutigam Capital

                              “Sweet spot“
    Deep value

                                                                 “Distressed” and other
                                                                   specialized funds

                 Micro caps                  Small caps                 Mid caps                               Large caps                                                    Mega caps

Note: Own diagram.

                                                                                                                 Presentation suitable for professional investors and eligible counterparties.
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Why small & micro caps?
“Fish where the fish are!” – Unknown

                                           Presentation suitable for professional investors and eligible counterparties.
                                       5
Small & micro caps offer a rich hunting ground …
European equities (I/II)

                                                                Approximately 85% of all listed companies in Europe are small or micro caps

                                                                                                                        3.6%
                                                                                                             12.7%

                                                                                                       6.3%

                                                                                                                                           77.4%

Segment                                      Market capitalisaton (€ bn)                      No. of companies                           % of companies                      Market capitalisaton (€ bn)                        Market capitalisation (%)

          Large caps                                        >10                                        264                                       3.6%                                         8,782                                           70.0%

          Mid caps                                        1 – 10                                       925                                      12.7%                                         3,054                                           24.3%
                                                                                                                                  >5x
          Small caps                                      0.5 – 1                                      452                                       6.3%                                          324                                             2.6%

          Micro caps
… for mispriced investment opportunities
European equities (II/II)

                                       Average number of research analysts of banks / brokers per listed company by market capitalization (EUR)

      20

                                                                                                                                                                                                  16
      16

                                                                                                                                                         13

      12

                                                                                                                    9
                                   “Sweet spot”
       8

                                                                                                  5
                                                                          4
       4                                              3
                            2

       0
                        < 100m                    100m - 200m        200m - 500m              500m - 1bn         1bn - 3bn                          3bn - 5bn                                  > 5bn

                                             Our goal is to discover mispriced small and micro caps through our own independent analysis

Source: FactSet, as of 30 June 2017.

                                                                                                                         Presentation suitable for professional investors and eligible counterparties.
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How do we identify undervalued equities?
“Small & micro caps from a refreshingly different perspective.” – Sven Hoppenhoeft*

* Managing Director, Pro BoutiquenFonds GmbH (previously: Department head of Vermögensverwalter Office, Joh. Berenberg, Gossler & Co. KG).

                                                                                                                                             Presentation suitable for professional investors and eligible counterparties.
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Strong focus on net assets and current earnings power
Tailored deep value framework

                                                                                           Competitive advantages       Barriers to entry

                                                                                                                                                  Market
                                                                Bargaining power
                                                                                                                                            outlook/prediction

                                            Positioning                                                                                                          Profitability of growth

                           Corporate                                                                                                                                                          Visibility of
                          governance                                                                                                                                                            growth

                                                                                                                                                                                                          Promising and
               Hidden assets
                                                                                                                                                                                                       innovative products

                                                                                                                                                                                                             Further growth
           Book value
                                                                                                                                                                                                          potential & disruption

         Safety                                                                                                                                                                                                   Speculation

                                                                                                             Margin of safety

                                                                       “Prediction is very difficult, especially about the future.” – Niels Bohr

* Danish physicist and Nobel Prize winner.
Note: Our value framework is significantly influenced by B. Graham, B. Greenwald, H. Marks and S. Klarman.

                                                                                                                                                    Presentation suitable for professional investors and eligible counterparties.
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Structured multi-level approach
Investment process

 1                                 2                             3                            4                                            5
                                                                                                        Portfolio                                      Decision making /
            Idea generation                Due diligence                  Valuation
                                                                                                      construction                                        Monitoring

                                                                          Tailor-made             Bottom-up selection of                             Structured decision
        Value characteristics            In-depth analyses
                                                                       financial models               ~20-30 stocks                                    making process

                                        Management, client &             Conservative
        Contrarian situations                                                                     Not benchmark driven                                Team discussions
                                         expert interviews               assumptions

                                                                                                        Adequate
          Variety of sources                Onsite visits            High margin of safety                                                           Ongoing monitoring
                                                                                                      diversification

                     We have a long-term investment horizon - and only invest in companies that we can understand and evaluate – “easy ones!”

Note: Own diagram.

                                                                                                                Presentation suitable for professional investors and eligible counterparties.
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We uncover opportunities that others overlook …
1. Idea generation (I/II)

             What are we looking for?                                                                                              How do we find what we are looking for?

                  Value characteristics                                                                      Specialised value screens / filters                    Small & micro cap research / newsletters

                            Low P/B(2)

                                              High returns
       Low P/E(1)
                                               on capital

  Strong corporate
     governance                              Hidden winners

                  Contrarian situations                                                                            Access to management                                                         Network

      Current losers                            Index                                                                                                                                         Fund managers
                            Spin-offs         exclusions
                                                                                                                                                                                                                PE(3) and VC(4)
                                                                                                                                                                            Management
  Pending litigations                            Crises                                                                                                                                                           investors

       “Unlucky”                               Unpopular
         IPOs                                                                                                                          Meetings &                          Industry experts                   Bankers & lawyers
                                                sectors                                                      Further conferences
                                                                                                                                         calls

                             We add ideas to our watchlist, from which we select the most promising situations for our in-depth due diligence process

1. P/E = Price/earnings ratio. 2. P/B = Price/book ratio. 3. PE = Private Equity. 4. VC = Venture Capital.

                                                                                                                                                    Presentation suitable for professional investors and eligible counterparties.
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… and successfully pick stocks in contrarian situations
1. Idea generation (II/II)

    Automotive sector faces major challenges                                    Share price development of European automotive stocks in the past three months (in%)

        EURO STOXX Total Market Auto & Parts                                                Top 1 – 25                                                             Top 26 – 50

                                                                                            Picked 2 out of top 3
                                                                                             EUR < 1bn market capitalisation

•   Our philosophy: bargains are much more likely to be
    found in times of uncertainty than in times of certainty

•   The automotive industry faces numerous structural and
    demand-driven challenges

•   Through our multi-layer and in-depth due diligence
    process we aim to separate the long-term winners from
    the losers

•   We were able to acquire two excellent companies at a
    discount price and already benefited substantially

Source: STOXX; Stockopedia; Gehlen Bräutigam Capital; as of 11 December.2019.

                                                                                                                               Presentation suitable for professional investors and eligible counterparties.
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Better understanding of investments through in-depth analyses
2. Due diligence

                Company analysis                                                 Market analysis                                              Competitor analysis                                 Site visits(1) and expert discussions(2)

                      ~5-7 days                                                      ~2-3 days                                                       ~3-5 days                                                         ~2-5 days

                                                                                                   Selected parts of the due diligence

                                                                   Very thorough due diligence: at least 10 to 20 days before initial investment

1. Selected example: visit of production facility of truck and trailer supplier SAF-HOLLAND in Bessenbach (Bavaria) in November 2019. 2. Discussions with management, industry experts, competitors, clients, suppliers, consumers etc.

                                                                                                                                                                                   Presentation suitable for professional investors and eligible counterparties.
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The price always makes the difference
3. Valuation

                     Tailor-made financial models …                                                                                 … based on conservative assumptions

                                                                                                                                                                              1     Upside case

                                                                                                                                                                              2     Conservative case

                                                                                                                                                                                         Margin of safety
                                                                                                                           Share price

                                                                                                                                                                              3                 Buy range

                                                                                                                                                                     Downside case

 •   We discuss potential investments without regard to our egos – we always see each other as sparring partners, not competitors

 •   We only invest with a high margin of safety of at least 30 – 40%, based on conservative assumptions in our financial model

 •   Prior to an investment decision, we always assess and discuss the portfolio allocation of the single stock

                                        “Anything can be a good idea at one price and time, and a bad one at another.” – Howard Marks

Note: Own diagram.

                                                                                                                                         Presentation suitable for professional investors and eligible counterparties.
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Individual weighting of single stocks in a concentrated portfolio
4. Portfolio construction

                                                                                             What are we looking for on the single stock level?*

                                                                                                                            Margin of safety

                                   Cyclicality (fluctuation with the market)                                                                                                                    Balance sheet quality

                                               Company-specific risks                                                                                                                          Corporate governance

                                                                                                                                 Conviction

                                                                                                 What we are looking for on the portfolio level?

•    Bottom-up selection of absolutely attractive investment opportunities (never relative)

•    Concentrated portfolio consisting of 20 – 30 single stocks

•    Only investments in industries and companies whose value drivers we can understand (1)

•    Appropriate diversification across regions and industries

•    Active avoidance of cluster risks(2)

                                     “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” – Benjamin Graham

* Selected key criteria.   1. This inevitably causes us to hold few to no investments in some (sub-) industries, e.g. in Biotech or parts of the Energy / Power & Utilities / Oil & Gas sectors. 2. Additional use of derivatives to selectively hedge currency risks.

                                                                                                                                                                                             Presentation suitable for professional investors and eligible counterparties.
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Continuous and dynamic process
5. Decision making & monitoring

                                                                    Due diligence & valuation

                                                                        Team discussion

                             Follow-up needed                                                                          Decision made

                                                                                                Entry price &                                                 Continuous
          Further analysis                      Back on watchlist
                                                                                                 weighting                                                    monitoring

Note: Own diagram.

                                                                                                         Presentation suitable for professional investors and eligible counterparties.
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Portfolio allocation, track record & case studies
Case studies illustrate our investment approach.

                                                   Presentation suitable for professional investors and eligible counterparties.
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Focus on deeply undervalued European small & micro caps …
Portfolio allocation

                  Allocation by free float market capitalisation (EUR)                                                                                      Top 10 holdings(1)

                                    9.9%                                                                                 1   Daejan Holdings              6.8%                     6       Ferronordic                                  4.9%
… in order to achieve the highest possible value accretion in the long-term
Track record

              Performance since inception(1)                                                                                                       Performance -S- tranche(1)

                                                                                                                    2018                                                              2019
 Period                            -S- tranche              -R- tranche
                                                                                                                   -2.9%                                                           +10.4%
 Since inception                      +7.2%                    +6.7%
                                                                                        110
 2019 YTD                            +10.4%                    +9.4%
                                                                                                                                                                                                                                                    +7.2%

 2018(2)                              -2.9%                    -2.5%
                                                                                        105

   Positive performance of all tranches since inception

                                                                                        100
   Relatively stable performance in 2018 despite market
                crash in the end of the year

           Performance in 2019 with c. +10%               / +9%                          95
                       rather subdued                                                    Jul-2018       Aug-2018        Oct-2018        Dec-2018   Feb-2019   Apr-2019      Jun-2019         Aug-2019          Oct-2019          Dec-2019

                                                 Great upside potential due to very significant discounts to intrinsic value of our current holdings
Source: Hansainvest, as of 30 December 2019.
1. Gehlen Braeutigam Value HI; net return, after deduction of all costs, incl. dividend.
2. About 6 months for -S- tranche (inception on 2 July 2018) and about 4 months for -R- tranche (inception on 7 September 2018).

                                                                                                                                                                         Presentation suitable for professional investors and eligible counterparties.
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Expected long-term return of >10% p.a. …
Selected examples (I/II)
                                  Operational development            Cash generation         (Re-) Investments   (Special-) Dividends              Growth                 M&A               Share buybacks

                                    • Family-run manufacturer of             • Founder-run operator of            • Global airline and event                            • Global leading manufacturer
   Company
                                      automotive and vehicle                   solar parks in Germany               catering company based in                             of aluminum vehicle parts
  description
                                      components                                                                    Vienna                                                based in Bordeaux

   Selected                         • Challenges in the car market           • Low sell-side coverage             • Loss of the largest customer                        • Challenges in the car market
  reasons for                         since mid-2018                         • Small free float                   • Challenging environment in                            since mid-2018
    under-                          • Very little known among                • Low liquidity                        Turkey                                              • Declining sales in the short
   valuation                          investors and low liquidity                                                 • Short sellers                                         term

                                     Operational development,                  Operational development,            Operational development                                Operational development,
                                            sentiment                         increased interest in sector             (strong growth)                                        sentiment, M&A
    Possible
  reasons for                       • Strong operational                     • Sharply increased investor         • Positive development                                • Swift and effective cost
   unlocking                          development despite                      interest in companies from           including winning of several                          reduction program
     value                            challenging market                       the renewable energy sector          large orders                                          implemented
                                    • Relatively small exposure to           • Strong management team             • Recovery of the largest                             • Takeover bid from Chinese
                                      China                                    and excellent execution              customer                                              competitor
  Share price
  increase(1)
                                                   +37%                                 +34%                                 +67%                                                        +22%

Source: Gehlen Bräutigam Capital, as of 30 December 2019.
1. Share price increase since first inclusion in the portfolio.

                                                                                                                                          Presentation suitable for professional investors and eligible counterparties.
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… with significant additional return potential through revaluations
Selected examples (II/II)
                                  Operational development                         Cash generation                   (Re-) Investments                    (Special-) Dividends                Growth                 M&A               Share buybacks

                                   • Largest non-US pizza                                      • #1 provider worldwide for                                • Leading European online                               • Turnaround investment
   Company
                                     delivery service worldwide                                  online poker (including                                    broker based in Germany                                 company based in London
  description
                                     with a focus on the Spanish                                 PokerStars)
                                     speaking market
   Selected                        • Operational development                                   • Regulatory challenges                                    • Short-term operational                                • No road show activities
  reasons for                        after IPO did not fully meet                              • Relatively high debt level                                 challenges                                            • Low market capitalization,
    under-                           investors’ expectations                                   • Untypical structure with                                 • Change in strategy                                      high illiquidity
   valuation                                                                                     regards to listing venue                                                                                         • No broker coverage

                                        Strategic partnership,                                                                                              Operational development,
                                                                                                        Sentiment, M&A                                                                                                  M&A, share buyback
                                                 M&A                                                                                                                  M&A
    Possible
  reasons for                      • Strategic deal with Yum!                                  • Cooperation agreement with                               • “Evaluation of strategic                              • Disposal of several holdings
   unlocking                         Brands to accelerate                                        FOX Corp. in the US                                        options" (incl. potential sale                        • Share repurchase offer to
     value                           expansion                                                                                                              and strategic partnerships)
                                                                                               • Takeover bid by British                                                                                            existing shareholder base
                                   • Takeover by leading US                                      competitor Flutter                                       • Value accretive acquisition
                                     private equity firm KKR                                     Entertainment Plc                                          of toughest competitor
  Share price
  increase(1)
                                                  +9%(2)                                                      +69%                                                        +36%                                                     +38%

Source: Gehlen Bräutigam Capital, as of 30 December 2019.
1. Share price increase since first inclusion in the portfolio. 2. Substantial top-ups at lower prices. Return on average entry price: +17%. Holding period:
Already realized
   investment

           An investment philosophy we share
           Sample Investment: Volvere (I/III)

                                         A turnaround investment company ...                                                     ... with a flawless track record

           •       Volvere (Latin: roll, turn) is a London-based turnaround investment company
                   founded in 2002
                                                                                                                   Vectra         3.6x
                                                                                                                                    (2003 – 2007)

           •       Volvere is able to provide capital very quickly in case of acute financing needs.            Sira Test &
                                                                                                                                         5.8x
                                                                                                                Certification
                   In such situations, there are often no alternative investors as they are not suitable                                  (2005 – 2009)
                   for traditional private equity investors

                                                                                                                                2.5x
           •       The prices are correspondingly attractive. According to Volvere’s management, they                            (2008 – 2013)
                   often do not exceed 10-20% of the net book value of the target companies

                                                                                                                                                                                     16.5x
           •       Volvere prefers to acquire 70-80% of the companies and prefers the existing
                                                                                                                                                                                       (2013 – 2015)
                   management to co-invest so that there is an alignment of interests

           •       Volvere's management is extremely selective in its investments. If necessary,                                                                                               19.0x
                                                                                                                                                                                                (2015 – 2018)
                   they can wait a very long time for the right opportunities, partly because they
                   themselves are the largest shareholders in their company
                                                                                                                                                                                                                         (1)
                                                                                                                                                                                                                     500x
                                                                                                                                                                                                                      (2006 – 2019)

          Source: Volvere PLC; press releases, also from acquiring companies.
          1. Particularly high multiple due to extraordinarily low purchase price (GBP 5,000.00).

                                                                                                                                     Presentation suitable for professional investors and eligible counterparties.
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Already realized
   investment

           Undervaluation even under very conservative assumptions
           Sample Investment: Volvere (II/III)

                                              Low risk due to high net cash(1)                                                                                          How can such an opportunity remain undiscovered?
          in GBP Mio.
                                                                                                                                                                                                                                              Low free float
                                                                                                                                                          (Very) low market capitalization
                                                                                                                                                                                                                                          (38.5% held by Mgmt.)
          Market capitalization                                                                          33.7
                                                                                                                                                                                                      Low trading volume
                                                                                                                                                                                                         (low liquidity)
                                      (2)
                         Net cash                                            18.5

                                                                                                                                                                   No broker coverage                                          No marketing / roadshow activities
                                                                                                                           (3)
           Impetus Automotive                                                                                     > 20.0
                                                                                                                                                                                                   Limited reporting
                                                                                                                                                                                            (Annual report with only 60 pages)
                                                                                                                                     (4)
                     Shire Foods                                                                                           > 5.0

                      Sira D & S
                                     (5)
                                                                                                                                 ?                                                    Long-term investment horizon required

                                                                         Discount to fair value is highly attractive in the light of managements’ track record
          Source: Volvere PLC; Impetus Automotive; Shire Foods; assumptions by Gehlen Braeutigam Capital.
          1. Valuation at date of first opening of position. 2. Incl. short-term liquid investments. 3. Estimated value of Volvere’s stake (~83%) after deducting estimated transaction costs. Volvere generated a pre-tax profit of GBP 3.6 million in 2017 and has grown strongly
          in recent years. From the study of press releases on the website, new case studies on successful projects with clients and the open job advertisements, we were convinced that Impetus is able to grow further. 4. Estimated value of Volvere’s share (~80%). Shire
          generated a pre-tax profit of GBP 600 thousand in 2017. 5. Sira Defence and Security.

                                                                                                                                                                                                  Presentation suitable for professional investors and eligible counterparties.
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Already realized
   investment

           Extraordinary track record
           Sample Investment: Volvere (III/III)

                                                                           Share price evolution since IPO (2002) and during holding period within the fund
         Share price in GBp
                                                                                             1,350                                                                     (1)
            1,400                                                                                                                                               Sale               1,290.00
                                                                                                                                                                                              (2)
                                                                                             1,250
                                                                                                                                                                                  +40.2%
            1,200                                                                            1,150                                                                                                                                                                                  1,215.00

                                                                                             1,050                                                                                                                   ~16.5% p.a.
            1,000
                                                                                               950

              800                                                                              850
                                                                                                                             Purchase
                                                                                               750
              600                                                                                Jan/ 18                  Jun/ 18                Dez/ 18                     Jun/ 19

              400

              200

                   0
                    2002        2003           2004           2005           2006           2007           2008           2009          2010           2011          2012              2013         2014             2015            2016            2017            2018

                                                                                                                                        Volvere PLC

          Source: Yahoo Finance, last update: 30 June 2019.
          1. Tender of all shares in the public repurchase offer at a price of GBP 1,290.00 per share.   2. Development of the position in the fund compared to the average entry price.

                                                                                                                                                                                                    Presentation suitable for professional investors and eligible counterparties.
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USPs & fund information

                               Presentation suitable for professional investors and eligible counterparties.
                          25
We are in the same boat, out of conviction!
USPs

                                                    Excellent investment opportunities through focus on attractive universe

                                                 Concentrated and focused portfolio. In-depth understanding of our investments

                                                                     Investments only at deep undervalues

                                                          Sustainable strategy through early limitation of fund volume*

                                         Alignment of interests through co-investments from Daniel Gehlen and Marc-Lennart Braeutigam

                              Fundamental, long-term, concentrated, thorough due diligence, deep value… active management delivering value-add!

* Fund volume is limited to approx. EUR 100m.

                                                                                                                   Presentation suitable for professional investors and eligible counterparties.
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Invest with us!
Fund information (I/II)
Fund                                                                                                                                            Gehlen Braeutigam Value HI

Investment objective                                                                                                     Achieving the highest possible value growth over a complete cycle

Recommended minimum investment period                                                                                                                     Min. 5 years

Category                                                                                                                                 European equity fund (min. 51% stocks)

Legal form                                                                                                                                                   UCITS

Classes                                                                                                        -R-                                                                                                  -I-

WKN / ISIN                                                                                       A2JQHQ / DE000A2JQHQ2                                                                              A2N811 / DE000A2N8119

Inception date                                                                                        7 September 2018                                                                                     2 January 2019

Currency                                                                                                                                                      EUR

Utilization of returns                                                                                                                                    Distributing

Minimum investment                                                                                No minimum investment                                                                                      EUR 200,000

Offering premium                                                                                                                                       Currently 0.00%

Redemption fee                                                                                                                                               None

Management fee % p.a.                                                                                        1.60%                                                                                               1.20%

Performance fee                                                                                                               15% of the performance above 4%, with high-water mark*

Order acceptance deadline for issues / returns                                                                         4pm (CET) of the previous day (forward pricing); Closing day (t): T + 5

Review frequency                                                                                                                                              Daily

Partner

KVG                                                                                                                                 HANSAINVEST Hanseatische Investment-GmbH

Custodian                                                                                                                                   Joh. Berenberg, Gossler & Co. KG

Liability umbrella                                                                                                                               BN & Partners Capital AG

* 15% per year of positive performance above the reference value 4% p.a. (absolute positive share performance) calculated as a performance fee, but a maximum of 15%. A negative performance must be reversed first.
Note: The prospectus and other investor information about the Gehlen Braeutigam Value HI fund can be found at www.hansainvest.com.

                                                                                                                                                                                 Presentation suitable for professional investors and eligible counterparties.
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Risk / return profile
Fund information (II/II)

                                                                          Typically low return and low risk
                                                                                                                                     The Gehlen Braeutigam Value HI is classified in category 6 because its unit price has
                                                                                                                                     fluctuated sharply and therefore both risk of loss and opportunity can be high.
                                                                                                                                     This indicator is based on historical data – a forecast of future developments is not possible.
                                                                                                                                     The classification of the fund may change in the future and does not constitute a guarantee.
 Typically high return and high risk                                                                                                 Even a fund classified in category 1 is not a completely risk-free investment.

 The following additional risks may be significant to the fund:

 •   Liquidity risks: The fund invests a substantial part of its assets in financial instruments,                                    •   Custody risks: Custody of assets, especially abroad, may involve a risk of loss resulting
     which are not traded on the official market on a stock exchange or on a similar market or                                           from bankruptcy, breach of duty of care or abusive conduct by the custodian or sub-
     that are otherwise difficult to sell and for which it may not be possible to find a buyer in the                                    custodian
     short-term. This may increase the risk of suspension of the unit redemption of the fund

                                                                                                                                     •   Operational risks: Human or technical failure, both internally and externally, but also other
 •   Default risks: The fund concludes transactions with various contractual partners. There is                                          events (such as natural disasters or legal risks) may cause losses to the fund
     a risk that contractual partners can no longer meet payment or delivery obligations

Note: The prospectus and other investor information about the Gehlen Braeutigam Value HI fund can be found at www.hansainvest.com.

                                                                                                                                                                      Presentation suitable for professional investors and eligible counterparties.
                                                                                                                            28
Contact us

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                        Phone: + 49 (0) 69 6677 48118 | Email: info@gbcvalue.com

             Bockenheimer Landstrasse 2-4 | OpernTurm | 60306 Frankfurt am Main | Germany

                                           www.gbcvalue.com

                                                                                     Presentation suitable for professional investors and eligible counterparties.
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Disclaimer

This document is a customer information (“CI”) in the sense of the German Securities Trading Act (WpHG). Responsible as the author for the content is the tied agent listed below. This “CI” is used
exclusively for information purposes and cannot replace an individual suitable investment advice. This “CI” does not constitute a contract or any other obligation or kind of contractual offer. Furthermore, the
content does not constitute investment advice, an individual investment recommendation, an invitation to subscribe for securities or a declaration of consent or a solicitation of an agreement on a
transaction in financial instruments.

This “CI” is intended only for professional customers and eligible counterparties with a habitual residence or domicile in Germany and has not been written with the intention of giving legal or tax advice.
The tax treatment of transactions is dependent on the personal circumstances of the respective customer and may be subject to future changes.

Recommendations and forecasts are non-binding estimates of future events. They can therefore prove to be inaccurate regarding the future development of a product. The information contained in this
document is based exclusively on the date on which this “CI” was provided. A guarantee for the actuality and correctness cannot be given. Past performance is not a reliable indicator of future performance.

This information is protected by copyright, no reproduction or commercial use is permitted. Date: December 17 th, 2019

Author/Issuer: Daniel Gehlen, Marc-Lennart Braeutigam – Gehlen Bräutigam Capital GmbH, Bockenheimer Landstraße 2-4, 60306 Frankfurt am Main, Germany acting as a tied agent (§ 2 section 10
German Banking Act) in the order, in the name, for account and under the liability of the responsible liability holder BN & Partners Capital AG, Steinstraße 33, 50374 Erftstadt. BN & Partners Capital AG
has a authorization from the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) pursuant to § 32 German Banking Act for the provision of investment
advisory service pursuant to § 1 section 1a no. 1a Banking Act and the investment brokerage pursuant to §1 section 1a no. 1 German Banking Act.

The above content only reflects the author's opinions, which may differ from those of BN & Partners Capital AG. A change of this opinion is possible at any time, without it being published. BN & Partners
Capital AG assumes no liability for the content, correctness and up-to-dateness of the information contained therein and does not accept any liability for damage resulting from the use of the “CI” or parts
thereof.

                                                                                                                                                 Presentation suitable for professional investors and eligible counterparties.
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