Original-Research: DN Deutsche Nachhaltigkeit AG (von GBC AG): BUY

Classification of GBC AG to DN Deutsche Nachhaltigkeit AG

Company Name:	DN Deutsche Nachhaltigkeit AG
ISIN:	DE000A3DW408
Reason for the research:	Research Note
Recommendation:	BUY
Target price:	€6.53
Target price on sight of:	31.12.2025
Last rating change:
Analyst:	Cosmin Filker, Marcel Goldmann

Strategic realignment towards impact investing with a strong investment portfolio and attractive NAV potential DN Deutsche Nachhaltigkeit AG (formerly NEON Equity AG) realigned its business model in the past financial year. The company's focus is currently described as ‘impact investing’. This means that in future, it will primarily invest in companies that are active in future-oriented industries. DN AG's investment portfolio currently comprises three major investments: EcoMotion Holding AG (formerly First Move! AG) and More Impact AG (More Impact for short), in which an investment was made in the 2023 financial year. At the same time, these two investments, as well as the minority investments in Global Health Care AG (formerly EasyMotionSkin Tec AG), SW Safe The Water Holding AG and Susmata Holding AG, represent the company's new investment approach focused on sustainable business models. At €13.24 million, total income for the first six months of 2025 was significantly higher than the previous year's level (€4.99 million). As the investments are not consolidated at DN AG but are recognised in the financial result, total income mainly comprises proceeds from the transaction of securities and investment income (dividends, interest). However, the sharp rise in total income was offset by a significant increase in other operating expenses, which led to a noticeable increase in operating costs to €-4.39 million (previous year: €1.26 million). These are primarily related to costs for consulting services, external work and commissions. In addition, the financial result was significantly below the previous year's figure at €-5.23 million (previous year: €1.92 million). While the previous year was positively influenced by income from securities, DN AG had to write down securities held by an investment in the first six months of 2025. This was necessary due to the persistently low price level. Interest expenses also rose in connection with the higher outstanding bond volume. All in all, the company posted a net profit for the period of €3.49 million (previous year: €5.55 million), which is below the previous year's figure. As at 30 June 2025, DN AG reported an increase in available liquidity to €8.86 million (31 December 2024: €3.69 million). Both the sale of securities and the continued issuance of the 10% corporate bond are likely to have contributed to this. On the other hand, there was a significant increase in other assets, which is likely to have had a negative impact on liquidity. The balance sheet of DN AG shows characteristics typical of investment companies. It is characterised by the dominance of equity, which increased to €288.51 million as at 30 June 2025 (31 December 2024: €285.02 million) and an equity ratio of 88.0%. As a result of the contribution in kind of 88% of the shares in EcoMotion Holding AG after the balance sheet date, equity rose further to around €367 million and the equity ratio is now over 90%. We use the NAV approach to value DN Deutsche Nachhaltigkeit AG. The total NAV calculated amounts to €363.03 million (previously: €282.62 million). The significantly higher NAV is distributed across a higher number of outstanding shares (55.58 million shares), which corresponds to a NAV per share of €6.53 (previously: €6.42). As announced in the last research study, the acquisition of Eco-Motion Holding AG has no significant impact on the NAV per share, as it was carried out as part of a capital increase in kind at €6.80 per share, which is close to the fair share value. Based on the current share price, we assign a ‘BUY’ rating.

You can download the research here: 20251124_DN_Note_engl Contact for questions: GBC AG Halderstraße 27 86150 Augsburg 0821 / 241133 0 research@gbc-ag.de ++++++++++++++++ Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung +++++++++++++++ Completion (german): 19.11.2025 (1:57 pm) First disclosure (german): 20.11.2025 (09:00 am) Completion (engl.): 24.11.2025 (09:19 am) First disclosure (engl.): 24.11.2025 (11:00 am)