PRESENTATION OF DANSK EGENKAPITAL

NOVEMBER 2011

CONTENTS
Company facts and management Outline of the offer Distribution policy and the duration of the fund The capital funds market in Denmark The market for renewable energy and green technology About Dansk Egenkapital Dansk Egenkapital Management Appendix

COMPANY FACTS AND MANAGEMENT

OBJECTIVE, MISSION AND VISION

VISION
Dansk Egenkapitals vision is to offer a broad range of investors the potential to invest directly in a capital fund structure, with reference to investments within renewable energy and energy efficiency.

MISSION
Dansk Egenkapital invests in Danish enterprises, and thereby in Danish workplaces, that focus on renewable energy and energy efficiency. Due to the increased focus on energyefficient solutions in society and in particular increased demand for energy, investments in just this area will create a good return for investors.

The whole energy sector is an area which we should focus on in Denmark and Dansk Egenkapital will play a
significant role in this, as there is a lack of capital for further developing small and medium enterprises. I am convinced that the pension funds understand this opportunity that by investing in Dansk Egenkapital, they will simultaneously be investing in Danish enterprises within the energy sector. They will get a slightly better return, at the same time as maintaining Danish workplaces. - Jrgen Mads Clausen, Board Member of Dansk Egenkapital.

FUND DATA
NAME, REGISTERED OFFICE AND COMPANY REG. NUMBER
Dansk Egenkapital Strandvejen 126 DK-8000 Aarhus C Company reg. number: 33 95 27 24

THE FUNDS OBJECTIVE

To establish a capital fund with the overall objective, directly or through possession of capital investments in other companies, of investing in small and medium enterprises with the primary focus on renewable energy and energy conservation.

FUND FOUNDED
27 September 2011

SIZE OF CAPITAL
The companys objective with its current offer is to achieve a combined capital coverage of at least DKK 500,000,000

STRUCTURE
Private investors
Subscription for shares

Institutional investors
Draw down

Partners

Dansk Egenkapital Energy A/S

Draw down

Dansk Egenkapital Komplementar ApS

Dansk Egenkapital Management A/S

Management agreement

Dansk Egenkapital K/S

100%

100%

100%

Holding X ApS
>50%

Holding Y ApS
>50%

Holding Z ApS
>50%

Operation X ApS

Operation Y ApS

Operation Z ApS

MANAGEMENT DANSK EGENKAPITAL

DANSK EGENKAPITALS BOARD OF DIRECTORS COMPRISES
Per Hornung Pedersen, Chairman
CEO, Pelamis Wave Power CEO/CMO REpower Systems AG CEO of Suzlon Energy CFO of NEG Micon (merged with Vestas)

Brian Mikkelsen
Member of the Danish Parliament since 1994 Formerly Minister for Economic and Business Affairs Formerly Minister of Culture Formerly Minister of Justice

Lars Christian Brask

Managing Director of EFG Bank Managing Director, Carniege Bank A/S Founder and CEO, Brask & Co. Ltd.

Henrik Lind
Founder/Chairman of the Board, Danske Commodities A/S Founder/Chairman of the Board, Lind Capital A/S Chairman of the Board, Danish Biofuel Holding A/S

Jrgen Mads Clausen

Chairman of the Board of Danfoss A/S Chairman of Wave Star A/S Former CEO of Danfoss A/S

MANAGEMENT DANSK EGENKAPITAL

DANSK EGENKAPITALS EXECUTIVE BOARD COMPRISES
Nina Rung-Hoch
Global Director, AVT Business School MBA Program Director, University of Seattle Vice President, Zurich Financial Service

MANAGEMENT DANSK EGENKAPITAL MANAGEMENT A/S

DANSK EGENKAPITALS BOARD OF DIRECTORS COMPRISES
Charlotte Valeur Adu, Chair
Managing Director, Book Street Partners Founder, Global Governance Group Director, Warburg Director, PNB Paribas

DANSK EGENKAPITAL MANAGEMENTS EXECUTIVE BOARD COMPRISES

Jesper hlenschlger, Managing Partner | CEO
Education, MSc Founder/CEO, Skykon A/S Founder/partner, EVO Management A/S Founder/CEO, M2 A/S Lawyer

Thomas Fugl, Partner | CFO

Education, MSc in finance & accounting Managing Director/CEO, Skousen A/S CFO, Wrist Far East Pte. Ltd. Finance Manager, Canon Danmark A/S Consultant, Deloitte

OUTLINE OF THE OFFER

OUTLINE OF THE OFFER

CAPITAL BASE
The minimum capital for the offer must constitute DKK 500,000,000

ESTABLISHMENT COSTS
Dansk Egenkapital reserves 1% of the capital commitment for establishment costs in connection with the setting up of the fund

PRIVATE PLACEMENT MEMORANDUM

The offer is based on a minimum subscription of five shares with a nominal value of DKK 380,000, not subject to the Prospectus Notice Dansk Egenkapital has drawn up a Private Placement Memorandum, which may be ordered via Dansk Egenkapitals website, www.danskegenkapital.dk The Private Placement Memorandum may, at a later time, be converted into an actual prospectus for approval by the Financial Supervisory Authority, whereupon Dansk Egenkapital can also offer investors the opportunity to subscribe for a minimum of EUR 10,000

DISTRIBUTION POLICY AND THE DURATION OF THE FUND

DISTRIBUTION POLICY AND THE DURATION OF THE FUND

Dansk Egenkapital operates as a close-end fund The invested capital will be continually repaid to the companys shareholders as the companys investments are liquidated Dansk Egenkapital expects to be able to generate an average return (IRR) of 20% from the portfolio companies Distribution takes place in conjunction with each individual sale of portfolio companies, with the combined profit being paid to the investors

It is anticipated that, as a result of this distribution policy, Dansk Egenkapital will have liquidated its investments within a period of 10-12 years

THE CAPITAL FUNDS MARKET IN DENMARK

DANSK EGENKAPITALS POSITION IN THE MARKET

Small funds (venture)
Sunstone Capital Via Ventures Nordic Venture Part. North Cap Partners Seed Capital

Majority/ Active ownership

Medium funds
Industri Udvikling LD Invest (Maj Invest) Odin Equity Partners Dansk Generationsskifte Capidea

Medium Danish capital funds

Large Danish capital funds

International and Nordic funds

Large funds
Axcel Odin Equity Partners EQT Polaris Nordic Capital Altor Equity Partners
This list is not intended to be exhaustive

Small Danish funds (venture capital)

0-100

100-500

500-1.000

1.000+ Revenue

THE MARKET FOR INVESTMENT IN SMALL AND MEDIUM ENTERPRISES

The number of purchases of enterprises has fallen between 2010 and 2011 The significant unrest on the financial markets is expected to further exacerbate this negative effect in the fourth quarter of 2011

Source: M&A International Inc. and Audon Partners

THE MARKET FOR INVESTMENT IN SMALL AND MEDIUM ENTERPRISES

On average, the trend as regards procured multiples has been falling since the financial crisis It is estimated that the price level has continued to fall in 2010 and 2011 The expectation for multiples in 2012 is 4-6 x EBIT, based on the current unrest on the financial markets and the lack of access to risk capital

Source: Advizer

THE MARKET FOR RENEWABLE ENERGY AND GREEN TECHNOLOGY

POLICY AND SOCIETY

Generally speaking, energy and environmentally-friendly technologies have been added to the international agenda in recent years The Kyoto Protocol, the 20-20 Plan, CSR (environmental section) and not least the gradual emergence of a shortage of traditional fossil fuels, are the background to the numerous initiatives that have been instigated nationally and internationally in recent years with the focus on improving the environment The constantly rising oil prices and the political will to reduce CO2 consumption means that renewable energy and energy conservation are essential elements within the social debate As a result, there has been a marked increase in recent years in the focus on developing technologies within renewable energy and green technologies The market for cleantech solutions currently constitutes more than DKK 1,300 million, and is displaying an annual growth of around 15%

CLEANTECH
Cleantech has the following advantages Rationalises the consumption of resources Replaces traditional energy usage or production Replaces the use of environmentally harmful materials Reduces pollution problems Cleans contaminated material Dansk Egenkapital is focusing on the areas of Energy and Energy conservation, with the latter including technological development and materials within the optimisation of energy utilisation The development and use of these technologies is currently driven by regulation legislation, orders or subsidies but as demand increasingly becomes regulated by the market, the sector will experience significant growth rates on a global market As the price trend for renewable energy reduces, this type of energy will become more attractive than fossil fuels
DEMAND
Waste Water

Cleantech

Energy conservati on

Energy

ENERGY

TIME

THE GLOBAL MARKET FOR RENEWABLE ENERGY

The combined market for renewable energy constituted approx. USD 188 billion in 2010, and this market is expected to almost double by 2020
400

Globale marked for vedvarende energi

350

Denmark is particularly strong in the field of wind energy, dominated by very large players such as Vestas and LM Windpower, and this segment is expected to grow from USD 60.5 billion in 2010 to USD 122.9 billion in 2020. Solar energy is expected to rise from USD 71.2 billion to USD 113.6 billion, and biofuel is expected to rise from USD 56.4 billion USD 112.8 billion.

300
250 200 150 100 Forventet omstningsv kst i USD mia.

This will achieve an extremely positive reflex effect for the small and medium enterprises in the segment

50 0 2010 2020
Source: Clean Edge Inc. 2011

In addition to wind energy, Denmark is home to a number of enterprises working with leading technologies in the fields of fuel cells, biomass, wave energy and alternative fuels

THE DANISH MARKET

As can be seen from the figure, cleantech enterprises in Denmark have experienced significant growth rates, both in regard to revenue and the number of employees

Energy and Energy conservation, the areas on which Dansk Egenkapital focuses, are the sectors recording the highest growth rates for revenue, at 25% and 19% respectively

Vkstrater
30% 25% 20% 15% 10% 5%

0%
Affald
Kilde: Vkstfonden og Business Review

Energi Antal ansatte

Vand Omstning

Energieffekt.

THE DANISH MARKET FOR RENEWABLE ENERGY

It is estimated that 400 small and medium enterprises in Denmark work exclusively as subcontractors to the wind turbine industry These enterprises aim to achieve rapid growth, provided they have the necessary access to growth capital (Source: DS Hndvrk og Industri) Exports of energy technology and equipment from Danish enterprises amounted to DKK 52.2 billion in 2010, equivalent to 9.5% of total Danish exports. Denmark consequently has a world-leading tradition within energy technology.
(Source: DI Energibranchen)

19% of Denmarks final energy consumption is currently provided by renewable energy, and with the political desire to increase this figure to 50%, the sector is set to experience significant growth.
(Source: Energistyrelsen)

The Danish energy industry experienced a growth of 107% during the period 1999 - 2006, whereas Danish industry as a whole achieved a growth of 67%
(Source: DI Energibranchen and Energistyrelsen)

DANSK EGENKAPITALS FOCUS

The ABC model is based on a products three phases Ambition is the establishment phase from concept to development of the actual technology (venture capital) Build extends from product development focus to strategic focus (PE capital) Conquer focuses on sales, growth and internationalisation (PE capital to Industry capital) Dansk Egenkapital estimates that there are currently between 500 and 700 small and medium enterprises working in the field of renewable energy, of which a large proportion will be in the Build phase over the next few years, and consequently a potential acquisition target for Dansk Egenkapital As Dansk Egenkapital is not directly funded within technological development, companies in this phase will primarily be those that are screened and acquired, with a view to assisting them in connection with the drawing up and implementation of strategies, growth plans and internationalisation Time Ambition The ABC model Build Conquer

Capital requirements Revenue Technology Strategy

DANSK EGENKAPITALS FOCUS

For many years, Danish investments in cleantech have been equal in size to foreign investments, although in recent years investments in the segment have been decreasing Danske investeringer i cleantech (DKK mio.)
300 200 100 0

A large proportion of the investments relate to venture capital, and for this reason there will probably be a need for additional equity in order to further develop these segments in the future
As there are no equivalent funds in the Nordic region with a specialist focus on the energy sector, Dansk Egenkapital will rapidly become an attractive fund With high visibility on the market combined with its specialist focus, Dansk Egenkapital will find it much easier to source enterprises directly from the owners With Dansk Egenkapital, the trend will shift from a lack of Danish investments within cleantech to increased investments, to the benefit of Dansk Egenkapitals shareholders and not least to the benefit of Denmark and the Danish people as a whole

2000 2001 2002 2003 2004 2005 2006 2007

Danske Udenlandske

ABOUT DANSK EGENKAPITAL

CONCEPT
The extremely turbulent market conditions in recent years have particularly hit small and medium enterprises, and at the same time the banks have generally been very reluctant to make loan capital available

This means that small and medium enterprises have found it difficult to develop, despite the fact that they may have a strong business model

This trend has meant that the enterprises have not been in a position to implement their strategy plans, have missed out on the opportunity for internationalisation, and as a result in many cases have ended up in a negative growth spiral

The enterprises consequently have a very great need for financing over and above traditional

bank financing, and for this reason the valuation of the enterprises in connection with potential
acquisitions has also been significantly downgraded since the financial crisis in 2007

In Dansk Egenkapitals judgement, the enterprises with increased capital preparedness as well as correct strategy development and execution will find themselves on a strong platform in the crisis, and in will be in a particularly strong position in conjunction with an exit after five to seven years, by which time the macro-economy may be expected to be positive again

CONCEPT (contd)
Dansk Egenkapital is structured as a traditional capital fund that invests in small and medium companies (defined here as a revenue of up to DKK 500 million)

Dansk Egenkapital focuses on the sector for renewable energy and energy efficiency, as it is considered that this sector will achieve significant growth rates in coming years

Dansk Egenkapital invests exclusively in Danish companies and workplaces, with a view to internationalising and consolidating these in order to thereby create increased growth

Dansk Egenkapital distinguishes itself from comparable capital funds by offering investments to a wide range of investors with a minimum subscription of DKK 380,000

Dansk Egenkapital wishes to give a wide range of investors the opportunity to invest in a rapidly growing market for green technology, renewable energy and energy efficiency

Dansk Egenkapital is consequently an alternative to private individuals pension portfolios, as it has been allowed to invest 20% of premium capital and capital pensions in unlisted shares since 2007

BUSINESS MODEL
Dansk Egenkapitals business model is based on a conventional capital fund structure, where value creation is achieved via investment, development and the sale of small and medium companies

The primary elements in the value creation process are the provision of industrial skills, experience and access to a significant network of people
As a starting point, Dansk Egenkapital only invests as a majority shareholder, exercising active ownership at both a strategic and an operational level As a starting point, the investment model requires the management and the board of directors of the portfolio company to be involved as co-investors, in order to promote motivation and a joint reference framework Dansk Egenkapital establishes a reporting and results platform, incentive programmes for key employees, as well as optimisation tools for strategy development and financing

INVESTMENT FOCUS
Dansk Egenkapital focuses on the sector for renewable energy and energy conservation The focus is targeted at established industrial enterprises within renewable energy and energy efficiency, as well as related enterprises. See the table below:
SELECT Renewable energy and energy conservation Industrial products Trade and service REJECT Property Finance Raw materials

Technology

Biotech and pharmaceutical

Transport Communication

INVESTMENT FOCUS
Focus on small and medium enterprises with venture and seed investments, although only up to 10% of the capital A maximum of 20% of the fund capital will be invested per portfolio company 20% of the capital will be reserved as capital resources for following up capital in the portfolio companies

Sale

Venture and seed investments

Reserve for follow up investments Small and medium companies

10 20 70

If you want to customise the diagram data area, you must drag the bottom right corner of the area.

INVESTMENT STRATEGY
Dansk Egenkapital invests in companies in which the provision of skills, either directly or via networks, will be able to reduce risks, assist in the companys positive development and create a foundation for an attractive return on the investment

The focus is on small and medium Danish companies with Revenues ranging from DKK 50-500 million. Positive cash flow Relatively low capital tie-up Strong platform with significant growth potential
Dansk Egenkapitals strategy is to accelerate the growth and generate long-term value creation, for example through Organic growth via product development, new distribution channels and international expansion Industrial consolidation via follow-on investment in competitors and suppliers Process optimisation and operational measures Optimisation of the companys working capital, financial and capital structure

INVESTMENT CRITERIA
INVESTMENT CRITERIA Geography FOCUS Denmark Follow-on investments may be international RATIONALE Use of networks Investment in Danish workplaces

Company size

Small and medium

Revenues ranging from DKK 50-500 million. 40-400 employees.

Many Danish companies are of this size

Unutilised growth potential in this segment Considerable need for equity in this segment Match between the needs of the companies and Dansk Egenkapitals skills

Industries

Renewable energy and energy conservation

Mature and established industries

Large growth potential

Low to medium risk profile Moderate capital tie-up

Owner criteria

Majority interests with a controlling influence Investments with other professional investors

Decisive for the implementation of strategic and operational changes, as well as controlled exit

CYCLE
This figure illustrates the three stages that individual portfolio companies are expected to go through The cycle per portfolio company has an anticipated time scale of three to seven years The portfolio of businesses is expected to be built up over a period of two to three years after the offer Dansk Egenkapital aims continually to have portfolio companies at various stages The three stages may overlap each other in practice, as an attractive opportunity to sell a company may arise before the development phase has been completed
RETURN

Exit

Developme nt Investment

TIME

STAGE I INVESTMENT
Dansk Egenkapitals investment process is illustrated below in six phases
DESCRIPTION Does the case satisfy the overall investment focus and criteria Build up trust between the parties and identify perspectives Identification of management team. Prepare business and operational plan Negotiations on main conditions and price. LOI printed Financial, legal and commercial due diligence. Negotiations for transfer agreement completed Transfer agreement and other documents signed RESPONSIBLE Dansk Egenkapital Management Dansk Egenkapital Management TIME SCALE One to two weeks RESULT Rejection or beginning of initial analysis and presentation Rejection or continued dialogue with owners, board of directors and management Analysis of potential, risk and initial negotiations

Screening

Initial analysis and presentation

Can take from two weeks to one year, depending on the extent to which the company is ready to be sold Four to ten weeks depending on data quality, materials, the complexity of the company and the level of information Instigated during the initial analyses and takes place in parallel Four to seven weeks depending on preparations and co-operation between the parties Conclusion of the due diligence process

Business framework

Dansk Egenkapital Management

Negotiations

Dansk Egenkapitals Board of Directors authorises Dansk Egenkapital Management to conduct negotiations Dansk Egenkapital Management. The Board of Directors approves the final investment proposal Dansk Egenkapital Management

Specification of LOI Establishment of timetable up until closing Implementation of due diligence for final funding of uncertainties and risks Implementation of the transaction

Due diligence

Closing

PHASE I THE SCREENING PROCESS

Dansk Egenkapital will identify acquisition targets directly via networks and in particular against the background of knowledge of the energy sector, to a greater extent than other equivalent investment companies and capital funds. The Board of Directors of Dansk Egenkapital and the management companys partners possess this knowledge. In this way, Dansk Egenkapital distinguishes itself from its competitors in one area in particular, namely its ability to source directly from the current owners and thereby not principally via company brokers/corporate finance houses, with the result That Dansk Egenkapital enjoys exclusivity in selected transactions That greater security is achieved regarding a forward-looking strategy, in co-operation with the management That knowing your own market is the key word. This requires the Board of Directors of Dansk Egenkapital and the partners within Dansk Egenkapital Management A/S to know the energy sector and have a network in the sector

PHASE I THE SCREENING PROCESS

Dansk Egenkapital Management expects to screen 70-100 companies annually during the initial years (the investment phase), with a view to rejection or continued dialogue. This contact can take place either directly from the company, company broker, the companys bank or auditor, or via Dansk Egenkapital Managements network. Dansk Egenkapitals overall criteria must be met Geography

Company size (revenue)

Industry Ownership criteria (majority shareholder) Results achieved A more specific screening analysis is prepared as a sliding transition into phase II in the event of the positive fulfilment of the overall investment criteria.

PHASE II PRELIMINARY ANALYSIS AND PRESENTATION

After a positive screening process, Dansk Egenkapital Management makes contact with the acquisition target in question in order to arrange a meeting. After a general presentation of the parties and typically between one to three meetings and an exchange of information, a preliminary analysis and a presentation of the acquisition target are prepared with regard to more specific criteria (the following list is not intended to be exhaustive) Is the correct management in place strong, experienced, ready to make changes, etc.? Does the company possess the relevant skills and a satisfactory market position? Does the company have a significant platform (technology/product) for potential development and value creation? Is the companys acquisition price attractive? (Assessment of whether purchaser and seller can reach agreement). Dansk Egenkapitals Board of Directors is continually receiving preliminary analyses regarding potential acquisition targets.

PHASE III BUSINESS FRAMEWORK

In co-operation with the acquisition target, Dansk Egenkapital Management conducts more indepth analyses and evaluations as well as drawing up business frameworks, including
Strategy plan Growth, optimisation of operations, follow-on acquisitions/industry consolidation, exit strategy Operational plan (action plans)

Liquidity improvement, improvements to margins and operations, organisational and acquisitionbased growth, etc. Reporting, key ratios and KPIs, management and process tools
Financial plan Working capital, capital structure

Valuation (use of several methods to achieve an accurate valuation) Multiple evaluation from the sector and industry Comparative multiple evaluation from related transactions and industries DCF model for calculating the value of the enterprise
The above information is summarised in an investment proposal, which is put to Dansk Egenkapitals Board of Directors.

PHASE IV NEGOTIATIONS
Following the presentation of an investment proposal to Dansk Egenkapitals Board of Directors, Dansk Egenkapital Management is authorised to conduct further negotiations with the acquisition target

The negotiation phase also covers Ongoing discussions and decisions regarding essential terms and conditions Incentive structure Debt financing Preparation of Letter of Intent (LOI) with reservation in the due diligence phase for: Agreement being reached between Dansk Egenkapital and the acquisition target regarding central economic and operational goals Co-investment by management/owners No general unforeseen complications and/or risks arising
The establishment of a shareholder agreement, earn-out model, etc.

PHASE V DUE DILIGENCE

Dansk Egenkapital Management conducts due diligence with the assistance of external advisors and individuals with experience of the sector. Due diligence is always conducted in the form of

Legal due diligence Financial due diligence Commercial due diligence

Commercial due diligence is performed as validation in relation to previous analyses and business plans, including special circumstances regarding Market development Competitors Product and customer portfolios Suppliers Price strategy etc. The due diligence phase is concluded with the preparation of the final investment recommendation to the Board of Directors of Dansk Egenkapital.

PHASE VI CLOSING
For validation and final approval of an acquisition, the Board of Directors is presented with an investment recommendation from Dansk Egenkapital Management. This recommendation includes:

A description of the acquisition target (organisation, structure, products, customers, suppliers, core skills, value chain, detailed description of the business model and key employees)
Description of the market (competition analysis, market position, essential market characteristics, trends, market size and market potential) Strategy and operational plan Financial analyses (history, budget, operational forecast, balance and cash flow, sensitivity analysis and calculation of anticipated IRR) Valuation Agreement structure (composition of the acquisition) and exit strategy

STAGE II DEVELOPMENT
Active ownership is the heart of the model, and in small and medium companies this usually takes place at executive management and board level This entails a high level of commitment on the part of Dansk Egenkapital Management, which at certain times will be extremely visible in the portfolio companies organisation (partner) Dansk Egenkapital Management exerts an influence through active participation in strategic and business development, budget planning and follow-up, acquisitions, internationalisation, recruitment, etc. The focus is on overall development and follow-up in all parts of the company, where an ownermanager or director usually tends to focus on sub-areas (product development, sales, etc.) On the whole, the active ownership is anchored in the professionalisation of the management and organisation, as well as in safeguarding the whole in order that growth and optimisation opportunities can be realised In conjunction with the acquisition, Dansk Egenkapital Management will appoint a new board chairman and join the board with one or two new members Dansk Egenkapital Management continually brings in external skills and resources as required

EXIT
Dansk Egenkapital analyses and describes possible exit strategies and scenarios right from the investment phase. The sale of a company is dependent both on an analysis of the companys sales maturity and value, as well as an assessment of the market for exit opportunities The exit model is adapted to the individual portfolio company and the market, and can take the form of Sale to an industrial purchaser Sale to another capital fund or investment company Listing In practice, companies that are owned by capital funds are always for sale, and any inquiries will be positively received.

DANSK EGENKAPITAL MANAGEMENT

BACKGROUND
Dansk Egenkapital has entered into an administration and management agreement with Dansk Egenkapital Management

Dansk Egenkapital Management attends to duties that are normally performed by an executive board in a limited company
However, Dansk Egenkapital does not have the same decision-making powers as the executive board of a limited company. Decision-making powers relating to the purchase and sale of individual portfolio companies rest solely with the Board of Directors of Dansk Egenkapital With due regard to the agreements, Dansk Egenkapital Management is authorised to perform organisational and administrative duties in conjunction with the day-today operation of the company

TASKS
Dansk Egenkapital Management will perform the following tasks and services with consideration to the legislation applicable at the time and to Dansk Egenkapitals interests. Portfolio advice and management Searching for investment opportunities Preparation of investment proposals Advice with regard to investments, follow-on investments and exits

Exercising owner influence on behalf of Dansk Egenkapital

Appointing board members (approved by the Board of Directors of Dansk Egenkapital) Representing Dansk Egenkapital Day-to-day management, corporate administration and reporting Preparation of proposals for distribution in the event of exits Dansk Egenkapital Management also attends to tasks in connection with the current offer of shares in Dansk Egenkapital.

FEES STRUCTURE
Dansk Egenkapital Managements fees comprise a fixed and a variable element Fixed fee Management fee constitutes 2% of the committed capital in Dansk Egenkapital When a capital commitment of DKK 750,000,000 is achieved, the management fee is reduced to 1.75%

Variable fee Carried interest constitutes 20% with a hurdle rate of 10% p.a. in the event of annual addition of interest Assessed in conjunction with each individual exit, although using the High Water Mark principle

ORGANISATION AND MANAGEMENT

Dansk Egenkapital Managements organisation is structured as illustrated Dansk Egenkapital Management wishes to appear a complete organisation, for instance with resource allocation taking place against the background of skills and qualifications All employees are rewarded via an incentive model against the background of Dansk Egenkapitals yield
Mng. Partner / CEO Jesper hlenschlger Partner / CFO Thomas Fugl Partner X

Management Assistant

Investment Manager

Finance Manager

Analyst

Employed at present Employed after capitalisation