Company’s Long-term financing possibilities

1. Company’s Long-term financing possibilities

2. Agenda • Equity financing • Debt financing • Alternative forms of self-financing • Alternative forms of external financing

3. Equity Financing • Shareholding Financing:Deposits and equity financing is the purchase of equity (Capital investment) of existing or new shareholders: always at starting a business but also increases in subsequent capital. 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

4. Equity Financing • Profits Financing: Among self-financing is may be withheld the financing from profits in the Companies. After the kind of profit is made distinct in the balance sheet: - Open self-financing - Silence self-financing 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

5. Equity Financing • Profits Financing: During the open self-financing can be seen based on the abstract effects of capital to the balance, the quiet self-financing to an increase in real capital, focusing on the balance sheet the amount of equity has no effect and thus the balance is not obvious. 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

6. Debt Financing • Loan Financing: Loan financing are included the case from the borrowing outside: - long-term debt financing (bonds, promissory notes, bank loansand franchising) - credit substitutes (factoring and leasing) 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

7. Debt Financing • Self generated debt – Financing Accruals are settled will be later account payable, they are in the balance sheet as debt. With this form of internal debt funds are tied to purposes financing to the company. It is differ between a temporary and a permanent financing effect. 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

8. Alternative forms of self-financing Business Angels Venture Capital Alternative forms of self-financing 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

9. Alternative forms of self-financing • Venture capital companies Under the often synonymous Private Equity Venture Capital is related a concept about the financing of young, often highly innovative enterprise. Venture capital firms make up implement to promising innovative approaches to venture capital firms. 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

10. Alternative forms of self-financing This is usually done by equity in the form of minority stakes the most in a care management issues but also a say are linked. For the investor this type of financing is risky in case of success is the involvement but with a combined value above. Also a management buy-out or spin-off (sale of business units from a group) a venture capital firm financed. 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

11. Alternative forms of self-financing • Business Angels Is the potential investor the risk just in the start-up phase of a company is too large, this gap is often caused by so-called business angel’s bridges: Wealthy individuals, without the intermediary of a venture capital firm into a company to invest (often former entrepreneurs). 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

12. Alternative forms of self-financing Usually a distinction is made between active and passive angels distinguished. During the latter is bringing the act as pure investor’s to active business angels in addition to financial participation including with a specific know-how and good contacts (Smart Capital). 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

13. Leasing • Alternative forms of external financing Zero Bonds MultiCurrencyNotes Floating Rate Notes Alternative forms of external financing 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

14. Alternative forms of external financing • Leasing With leasing "rents" the business part of the operating lease from a donor. In place unique is the high cost far lower but it is rent for often long-time payments. Unlike the credit-financed purchase the option to pay even more care, maintenance and repairs of wear leasing donors have carried out (Maintenance Leasing). 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

15. Alternative forms of external financing • Zero bonds For zero coupon bonds are linked bonds but not with continuous are interest payments. Instead the investor receives the interest and compound interest at maturity together with the amount originally paid-up investment. Typically the duration of zero coupon bonds are from 10 to 20 years. The rate of return of zero results from the difference between issue price and redemption price higher. 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

16. Alternative forms of external financing • Zero bonds Here the bond either to a rate of 100% output and has a higher repayment rate (Accretion bond, increase borrowing, interest collectors) or the repayment of 100%, with a correspondingly lower emission rate (real zero coupon bond). Zero can also be sold before the end of the period. The price of the zero coupon bonds decreases with rising market interest rates and vice versa. 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

17. Alternative forms of external financing • Zero bonds Zero reacts more strongly to changes in market interest rates than conventional loans, because in addition will be principal to the interest rate of the amount. This leverage decreases with decreasing maturity of the zero coupon bond. Generally the purchase of zero coupon bonds for the investors especially in a high yield interesting phase because he can secure a high level of interest rates for the entire duration. However for the capital-holder is the output of a zero phase a low-interest advantageous. 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

18. Alternative forms of external financing • Floating Rate BondsFor floating rate bonds (floating rate notes) is not determined the interest rate for the entire duration but he will be fixed the rate at the regular intervals using of reference. The reference rate is selected money to the interest rate market which can be corrected a premium or discount. The redefinition of the interest rate is made usually quarterly or semi-annually. Reference interest rates are usually the LIBOR rate (London Interbank Offered Rate) or EURIBOR (European Interbank Offered Rate). 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

19. Alternative forms of external financing • Floating Rate Bonds Both sets represent short-term money market rates in the interbank trading of the leading banks in the corresponding Country. In addition floating rate bonds can be determined at an interest rate ceiling (cap) and a lower interest rate (floor). 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing

20. Alternative forms of external financing • Dual Currency Bonds With dual-currency bonds (Multi Currency Notes) made financing and repayment in a different currency. It may interest both in the deposit as well as agreed the repayment currency. The emission yield of a dual currency bond is between the yield of a bond in the deposit currency and the yield of a bond repayment in the currency. By issuing dual-currency bonds abroad a company may exchange risk largely confined to unload to the capital investors. 1. Equity financing 2. Debt financing 3. Alternative forms of self-financing 4. Alternative forms of external financing