The first half of financial year 2010/2011

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2 The first half of financial year 2010/2011 A respectable performance in an environment that remains tainted by uncertainty and reticence: These few words effectively sum up the first six months of the 2010/2011 financial year at Steubing AG. Gross earnings were up 12.6% relative to last year at k 12,034, resulting in a pre-tax result of k 1,446 (+36.68%), with a preliminary, unaudited net profit for the year of k 930. In comparison with last year, this represents growth of 43.16%. On the one hand this result reflects the slight upward trend on the stock market. The DAX, for example, after oscillating sideways for months at a time eventually increased during the reporting period from 5,965.5 points (at opening on 1 July 2010) to close the year at 6, points. On the other hand many players were still reticent, as the following trends reflect: The half-year figures at a glance (in k) 14,000 12,000 10, / /2011 Gross profit before cost of trading 10,687 12,034 Gross profit after cost of trading 8,773 9,729 Earnings before taxes 1,058 1,446 Preliminary net profit in k 8,000 6,000 4,000 2,000 0 Gross profit before cost of trading Gross profit after cost of trading Earnings before taxes Preliminary net profit 2009/ /2011

3 Turnover remained low: Turnover on all of the German stock markets increased only slightly over last year ( k 1.68 trillion) by 2.5% or so to k 1.72 trillion. Low volatility: The points registered by the VDAX shortly before the end of the year (22 December) was the lowest since December 2007 Minimal new issues: After a hopeful start in the first half of the calendar year, despite the continuing boom in IPOs in the emerging markets, the period from 1 July to 31 December 2010 saw only three flotations on the Regulated Market at the Frankfurt Stock Exchange with a combined value of k 675 million. There are various reasons underlying this reticence, ranging from uncertainty over the future emergence of other possible candidates for default in the euro zone (Portugal, Spain, Italy, Belgium) via the diverging forecasts concerning the sustainability of developments in China to the wave of new regulatory controls about to wash over the finance industry at all levels. These in particular include the revisions to the MiFID (Markets in Financial Instruments Directive), the rules on short selling and the new equity requirements to emerge from Basel III. MiFID II foresees tighter regulation in future in areas that have thus far largely been left alone (OTC trading, algorithmic trading, high frequency trading, bond trading) with the object of enhancing the security, stability and integrity of Europe s financial markets. Development of various stock indices (in the period from 1 July 2010 to 31 December 2010) 1 30,00 25,00 20,00 in % 15,00 10,00 0,00-5,00-10,00 DAX MDAX TecDAX Stoxx 50 CDAX Banken * 1 Source: Deutsche Börse AG and Bloomberg

4 In this difficult environment, in its core business of securities trading and execution, electronic order routing and market making Steubing AG not only succeeded in achieving a satisfactory result, but also in adding to its market share. While turnover on all of Germany s stock markets rose only slightly by a little over 2.5%, the business handled by Steubing AG in XETRA trading and on the floor in Frankfurt increased by almost 16% compared with the same period last year. The following statistics 1 clearly underscore our performance: Second-highest score in the performance ratings for lead brokers Leading positions in the broker and member rankings AA rating for our activities as designated sponsor High performance quality and fast execution times as a specialist on the Scoach derivatives exchange In addition we have also forged links with Tradegate Exchange. As a result, Steubing AG is able to continue to offer orderflow management for all German stock exchanges. As a supplement to these share- and derivative-focused activities, since the summer of 2009 Steubing AG has also been Development of Stock Exchange Volume (Period: 1 July bis 31 December) 2 4,00 3,50 3,00 in trillion 2,50 2,00 1,50 1,00 0,50 0, Turnover on all German Stock Exchanges XETRA -Turnover 1,2 Source: Deutsche Börse AG

5 developing its business activities in the bond segment. An important step taken during the reporting period following a decision handed down by the appeal court in Frankfurt on 5 October 2010 was the resumption of our activities as an XETRA specialist in bonds. This area of business originally embarked on in December 2009 was halted after a matter of weeks by a temporary injunction obtained by two companies whose applications had been unsuccessful. Given that the resumption of activities not least in view of proceedings still pending before the Frankfurt district court has thus far not been widely broadcast, performance to date has been very respectable. Together with our partner Walter Ludwig GmbH and Deutsche Börse AG, we shall continue to selectively market this refined trading model and sharpen our profile as a bond specialist. Assistance will also come from the marketing of the Internet platform, which has recently been developed by us as an interface between retail banks and bond issuers. We also have positive news to report from the Sales, Research and Equity Capital Markets/Corporate Advisory business areas. For the first time on 30 November 2010 together with Deutsche Börse AG we held an investors conference in Zurich entitled High-Tech Engineering Companies Introduce Themselves. The companies presenting at the event were Aixtron, Medion, PSI, SAF Holland, Singulus Technologies and SKW Stahl. With around 60 participants attending, the conference was a complete success. The competence of Steubing AG as a local broker with an emphasis on attractive niche markets was highlighted by two reports on sector-specific fundamentals published by our Research department during the reporting period, this first in August entitled Smart Grid Primer about intelligent power networks and and the second in December 2010 on Green buildings an introduction. Last but not least, the Equity Capital Markets/Corporate Advisory department is currently working on specific projects which if market conditions are favourable and subject to positive due diligence could be implemented in the coming months. Steubing Derivatives Brokerage (SDB) GmbH, a joint venture with IDC AG based in Bad Homburg, has shared in the positive developments in its particular market. The number of investment and leveraged products offered reached a new record figure of 550,000. The monthly market turnover also grew substantially towards the end of the year. According to the German Derivatives Association DDV, turnover in November on the Frankfurt and Stuttgart exchanges reached

6 k 5.7 billion, representing growth of 18.8% over the preceding month. What s more, SDB is also profiting from the parallel optimisation of its cost structures. Macroeconomic outlook Germany s gross domestic product (GDP) grew faster last year than at any time since According to provisional calculations, GDP increased in real terms by 3.7% relative to This strong growth was essentially driven by demand from abroad, and in particular from non-eu countries. With production and sales still lagging well behind incoming orders, we expect further above-average growth in We are forecasting growth in real terms of 2.6%. That equates to twice the average since On the other hand there will be a shift in the factors driving this growth. As in previous cycles we expect the rate of growth in exports and imports to halve an effect typically seen after the first year of rapid expansion following a recession. On this basis the external contribution to GDP would fall from 1.4% to 0.8%. The largest contribution is likely to come from domestic consumption. We anticipate demand for equipment to rise by 3%, with buildings and property adding 3.5%. In addition government expenditure will rise by 1% in real terms. We expect to see the largest increase of 1.8% in real terms in consumer spending. Inventory variations on the other hand are unlikely to provide any momentum. Overall the internal contribution to GDP should therefore rise by 1.8% in real terms. Together with the external contribution of 0.8%, we arrive at our growth forecast of 2.6%. The real-term growth rate of 1.8% in consumer spending is the highest since German reunification and deserves particular attention. We have based the growth rate on the development in disposable income. Our estimates indicate that net wages and salaries will rise this year by 3.7%. Of this figure, 2.7% will be accounted for by pay increases and 1% by longer working hours. Thanks to lower unemployment and the abandonment last year of short-time working, there will be a no more than moderate increase of 0.5% in monetary benefits such as pensions and unemployment benefit. As a result, combined household income will rise by a total of 2.5%. Net corporate profits and self-employed incomes are likely to increase by 4.5%, lifting available incomes by 3.1%. In fact, if one takes into account private pensions that are growing by around 5% per year, available incomes will be up by 3.2%.

7 We also anticipate that the savings ratio will fall from 11.9% last year to 11.7%, equivalent to a no more than marginal increase in savings volumes. As a result, the income available to spend should increase by a nominal 3.4%. After deducting our inflation estimate of 1.6%, we are left in real terms with a 1.8% increase in consumer spending. The least certain factor in our estimate is the assumed inflation. There are two reasons why this could be too low: 1. The development in food and energy prices In the space of a year as reflected in the CRB Future Food index published by the Commodity Research Bureau food costs have risen by almost 30%. In addition suppliers in Germany have raised electricity prices by an average of 7.1% from January of this year. Consumers will be hit by both these trends. 2. Soaring costs In a recent interview with the business journal Handelsblatt (29 November 2010) the CEO of Hennes & Mauritz, Karl- Johan Persson, commented that clothing prices are set to rise steeply. The reasons he cited were the high price of wool and the sharp increase in Chinese wage costs, which are effecting virtually every producer of consumer goods. While companies in Germany in particular are attempting to maintain their margins by raising prices, in other euro zone countries where growth is comparatively weak, such a response is unlikely to be feasible. As a result, despite the shift in price risks to those euro zone countries with stronger growth, the general price stability across the region should be maintained. The equity markets for which the signals remain set to green will benefit in particular from changes in investment philosophy. Fixed-income bonds are meanwhile heavily overpriced. Whereas despite last year s rally, equities still offer value for money.

8 The second half-year for Steubing AG Once again in 2011 Steubing AG awaits the outcome of the Phoenix v. EdW (the securities trading companies compensation fund). In addition to the increase in regular annual payments resulting from the EdW s revised contribution regulations, in August we received a demand for a special levy amounting to k 388,000. We have appealed against this demand and applied for collection to be suspended. A series of test cases are pending that encompass all aspects of this complex issue, the outcome of which we are still awaiting. The year 2011 will also see the demise of our lead brokerage business. On 24 November 2010 the Council of the Frankfurt Stock Exchange resolved that lead broker-based floor trading would cease on 24 May, to be replaced by the XETRA specialists business model in the interests of maintaining the attraction of the Frankfurt Stock Exchange in the international competition between trading centres. This change is synonymous with a transition from the realm of public to private law. As a result, Deutsche Börse AG will not only enjoy greater freedom in defining selection criteria and contracting with specialists, but will also be able to substantially raise its requirement thresholds in respect of trading times, capital and technical resources. Steubing AG has for some time been actively involved in the migration process, and with our equity ratio of around 90% and our traditionally excellent IT structure we are well prepared to make the change. We shall follow the consolidation process to be expected in the sector with close attention. Should we consider it meaningful to do so, we are always in a position to actively intervene. The arrival of the New Year also brought with it a decision on the orientation of the Scoach/Structured Products division. An amendment drafted by Scoach Europa AG markedly reducing the remuneration structure would have been a major burden for this division at Steubing AG and would in all probability have eroded the division s profit contribution. Consequently no agreement was reached on an adjustment in remuneration and Scoach Europa AG has terminated Steubing AG s role as a specialist effective 31 March A swift and mutually satisfactory solution has been agreed with both the issuers and employees concerned and is currently being implemented. These changes notwithstanding, Steubing AG will continue to work on diversifying its product range and customer base. One element in this process involves the marketing of products and services developed in the recent past in the

9 bond segment, such as for example our activities as an XETRA special in bonds and the platform. Other elements will include the commencement of a new service currently in preparation in the bond space, and addressing new as well as existing customers with a view to offering Integrated Orderflow Management (IOM). In this segment, we have already succeeded in recruiting several customers and have latterly integrated the entire foreign retail business of a major institution. The essential feature of this newly devised service is the integrated management of the entire order process up to an including innovative clearing and settlement solutions. In addition we are also continuing to enhance the attraction of our Research & Sales offerings. For example in spring 2011 we will be holding another investors conference in Frankfurt. As a result of the excellent response to our event in Zürich, we are also considering holding conferences at regular intervals in future in international trading centres. In addition the portfolio of stocks covered by our analysts is steadily being expanded. We shall for example shortly begin coverage of shares in Vossloh AG (railway infrastructure and technology), Aixtron AG (a supplier of deposition equipment to the semiconductor industry) and Rheinmetall AG (automobile components and defence systems). Steubing AG stock The annual general meeting in December 2010 approved the proposal by the Management and Supervisory Board to pay a dividend of k 0.30 for financial year 2009/2010. Taking into account our competitors results, Steubing AG thus remains a stock with an attractive dividend yield.

10 The Company Steubing AG is an independent securities trading bank headquartered in Frankfurt am Main, Germany. The company was first founded in 1987 as Wolfgang Steubing GmbH Börsenmakler, a limited liability company, and became a public limited company in January The Company s business activities are founded upon trading and electronic order routing in listed shares, bonds, certificates and warrants. Other principal areas of activity include the Lead Broking, Integrated Orderflow Management (IOM), Structured Products, Derivatives, Designated Sponsoring, Sales, Research and Equity Capital Markets/Corporate Advisory business areas. In addition SDB Steubing Derivatives Brokerage GmbH, founded in 2007 in cooperation with IDC AG, also offers independent competence in the field of structured products. At the end of the financial year 2009/2010 the Group employed some 70 staff. Steubing AG is a member of the Federal Association of Securities Companies on the German Stock Markets (bwf e.v.), the securities trading companies compensation fund EdW, and Frankfurt Main Finance e.v., an initiative to strengthen Frankfurt as a financial centre. Steubing AG Services Steubing AG offers services in the following business areas: Trading and Electronic order-routing in listed stocks and bonds, certificates and warrants: In this field Steubing AG acts as an agent/own-account broker on all of the German stock exchanges, facilitates the execution of orders in XETRA trading and also has direct online access to around 50 international markets. The Company has many years of experience in trading in international stocks. In the sales volume rankings published by Deutsche Börse AG for the various market segments, Steubing AG is regularly listed as a top performer. Integrated Orderflow Management (IOM): The essential feature of this newly devised service is the integrated management on a one-stop shop basis of the entire order process up to innovative clearing and settlement solutions. The individual concept of cost-optimised cross-border settlement processes is an important additional competitive factor in this area.

11 Lead Broking: As a lead broker, Steubing AG offers issuers and investors the opportunity to trade on the Frankfurt Stock Exchange. Deutsche Börse AG has appointed us to set the price of around 1,000 German and international securities. Structured Products: Since December 2008, Steubing AG has provided a service as an intermediary trading specialist at Scoach, the European market for certificates and warrants. The issuers we support are profiting from the high quality and speed of execution. Designated Sponsoring: Since Deutsche Börse AG introduced Designated Sponsoring in October 1998, Steubing AG has managed the securities issued by some attractive companies in XETRA electronic trading. Ever since taking up this activity, Steubing AG as Designated Sponsor has earned an optimum AA ranking in quoting its clients shares. With BB Biotech AG we currently support one company. Derivatives: Steubing AG offers a comprehensive service in the fields of execution and volatility brokerage for all products traded on the Eurex exchange. Sales: Steubing AG focuses on institutional investors, international banks and trading desks. As a well-known block trading partner, the Company is noted for its successful placements and regularly holds roadshows and investors conferences. Research: Our analysts, each of whom has at least ten years professional experience to call on, maintain intensive contacts with the corporate world. In turn this enables them to offer both up-to-the-minute macroeconomic analyses as well as company- and industry-specific reports focusing on the sectors steel, mechanical engineering, automotive, renewable energy and software with focus on integration and e-payment. A daily Morning News service complements our research portfolio. Equity Capital Markets/Corporate Advisory: In this area we offer competent independent support for small and medium-size enterprises on issues relating to equity, such as for example how to prepare for and undertake initial public offerings and increase capital, and on the implementation of smaller M&A transactions. We also advise companies that are already listed on their positioning in the capital market. In November 2006, Deutsche Börse appointed Steubing AG as a Listing Partner. We have been active as an issuing expert in M:access since 2008.

12 Contacts Management Board Money Laundering Officer Compliance Dr. Jochen Grossmann Alexander Caspary Kai Jordan Marion Steubing Hanns-Adrian Braun +49.(0) Investor Relations / Juergen Mai Public Relations +49.(0) Janina Wiebols +49.(0) Domestic Trading Foreign Trading Commission Trading Andreas Keune (Proxy) +49.(0) Klaus Best +49.(0) Klaus-Peter Steinert +49.(0) Integrated Kai Jordan Orderflow Management (IOM) +49.(0) Research Sales-Trading Sales Derivatives Sales Kai Jordan +49.(0) Wolfgang Schroth +49.(0) Ralf Meinerzag +49.(0) Alexander Deuss +49.(0) Heinz Stork +49.(0)

13 Contacts Lead Broking Foreign Lead Broking Domestic Equity Capital Markets Corporate Advisory Revision General Management Middle Office Human Resources IT Joachim Große +49.(0) Anthony Disser +49.(0) Dr. Jochen Grossmann +49.(0) Michael Schatzschneider +49.(0) Carsten Bokelmann +49.(0) Dietmar Amberg +49.(0) Hanns-Adrian Braun +49.(0) Melanie Heinz +49.(0) Waleri Schwert +49.(0)

14 Wolfgang Steubing AG Wertpapierdienstleister Financial Year 01 July to 30 June Office Goethestrasse Frankfurt am Main Telephone +49.(0) Fax +49.(0) Auditors Supervisory Board Ernst & Young GmbH Auditing Company Mergenthalerallee Eschborn Wolfgang Steubing (Chairman) Frank Wiebols (Deputy Chairman) Christoph Bokelmann Ernst Neumeier Dietmar Schmid Achim Vandreike DEUTSCHE BÖRSE LISTING PARTNER

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