Heliad Equity Partners GmbH & Co. KGaA

Investment Focus Focus on Germany We focus on our home market, Germany, by drawing on the excellent network and exceptional deal flow available to us there. Moreover, Germany’s economy is by far the strongest and healthiest in Europe, and, in our opinion, will continue to remain so due to its numerous structural advantages: a vigorous SME landscape, (excessively) low interest rates given the economic upswing as well as the (excessively) low valuation of the euro, which encourages exports. The backbone of the German economy is made up not just of the well-known blue-chip companies traded on the DAX, but it is above all built on the country’s many listed and unlisted “second-tier” small- and medium-sized enterprises. And some of these SMEs have long since ceased to be the traditional family-owned-and-operated businesses of days gone by. Germany is currently undergoing a true start-up boom, and many German technology companies are not only able to hold their own against the competition from Silicon Valley and London – they are actually able to outperform them. Focus on 4 Sectors Over the years we have developed an explicit focus on the following four sectors: 1. Internet & Tech 2. e-commerce 3. Life Sciences 4. Media & Enter­tain­ment Heliad invests in both listed and unlisted companies in these sectors. Investment Strategy Special Situations Our goal is to achieve long-term, above-average returns for our shareholders, which we have clearly succeeded in doing every single year since we introduced our new investment strategy in October 2012. In our opinion, this is only possible if one is willing to strike out in new directions and go the extra mile. Globally, and particularly in Germany, an excessive amount of capital is available primarily for “standard deals” (buyouts, venture capital, etc.), which causes valuations to rise and, as a result, returns to fall. By contrast, Heliad focuses on Special Situations during a company’s life cycle. For Special Situations special know-how and, above, all, active hands-on management are required. We do not participate in conventional M&A bids or invest in a company whose valuation is largely speculative. The following are good examples of potential Special Situations, though the list should not be considered complete since the challenge of Special Situations is precisely that each one represents a “special” and unique investment opportunity: Restructurings/Turn Arounds: These involve companies that possess a sound core, i.e. a good product, but that are confronted with structural problems – for example poor management, poor liquidity, slow sales, or a combination of issues. Disruptive business ideas lacking the required entrepreneurial „kick“: These are companies with ideas and business models innovative enough to revolutionize a sector, but whose management teams – perhaps because it’s their first time creating a company – need an investor/partner that can bring its network and experience to bear so that the company can quickly and fully reach its market potential. Buy and Build, Role Up/Industry Consolidation & Platform Models: Many companies do not make sense as stand-alone investments, or are simply too small for institutional investors. However, by bundling them into a larger structure that is able to generate synergies, they can become very attractive investments. Our principle focus is on providing equity, but, depending on the situation, we can also offer loans or mezzanine financing. Strong operative Management Team as guarantee for success We are entrepreneurs ourselves and as such firmly believe that outstanding, entrepreneurial management is the key to success. A company’s management is therefore by far the most important criterion when we are deciding whether or not to make an investment. The companies we invest in either already have an excellent team of founders and/or managers, or we are able – perhaps in the course of a restructuring – to replace the existing management team with managers we’re familiar with. Subsequent to our investment, we work hand-in-hand with management and apply our extensive network and experience to quickly take the company to new heights. As part of standard corporate governance, we also actively exercise our shareholder rights as advisory council and/or supervisory board members. Active Value Creation It is of high importance to invest under particularly favorable terms. Equally important, however, is to ask what needs to be done to resolve the problems outlined above so as to significantly increase the value of the company as quickly as possible. What is the catalyst that will allow the investment to take off And will it then be in a position so that it can be sold at a profit On the one side the old adage applies: “The profit lies in the purchase.” But profits can only be reaped at the time of sale. So thinking already at the time of investment about the divestment strategy makes a lot of sense. And in this the interests of Heliad shareholders and Heliad management are in perfect alignment, because the 20% profit participation for Heliad management only applies to actual, realized profits. Since catalysts are as varied as the investments themselves, the following list contains only a few examples. The critical factor, however, is not to wait until the situation improves but rather to proactively take the steps necessary to improve the situation: Enlargement or replacement of the management team IPO – a change in perspective: We invest in both listed and unlisted companies but are above all interested in arbitrage effects that can be realized by taking private companies public. Achieving "critical mass": Many companies only become attractive to follow-on investors once they have achieved a critical mass in terms of revenues and profits. An active growth strategy, perhaps combined with an add-on acquisition strategy, offers a company wholly new prospects, thereby opening it up to entirely new strata of investors, which in turn increases its values. Strategic relevance: This applies to companies that are clearly future candidates for strategic buyers but which still need 2-4 years to be "ripe for purchase". Or better yet: a combination of several different catalysts Since we work constructively with all the stakeholders to implement the changes needed, our strategy can be succinctly described as “friendly activism.” Stock market listing provides high flexibility Heliad’s greatest advantage is that it is structured as a so-called “evergreen” vehicle, which means that, as opposed to a mutual fund or hedge fund, it is not subject to possible outflows but rather has permanent equity. The fact that Heliad is listed provides shareholders with liquidity since they can trade its shares daily. This allows Heliad to act independently of term financing and make both investment and disinvestment decisions on a case-by-case basis, which provides for a high degree of flexibility.