fund performance the germany funds june 28. 2010 annual shareholder meeting

Fund Performance

The Germany Funds

June 28. 2010

Annual Shareholder Meeting

2

Important Notes:Closed end funds. unlike open end funds. are not continuously offered. There is a one time public offering and once issued. shares of closed end funds are sold in the open market through a stock exchange. Shares of closed-end funds frequently trade at a discount to net asset value. The price of the fund's shares is determined by a number of factors. several of which are beyond the control of the fund. Therefore. the fund cannot predict whether its shares will trade at. below or above net asset value.

Past results of the markets as discussed in this presentation are not necessarily indicative of future performance of those markets.

The European Equity Fund, Inc. (EEA) and the New Germany Fund, Inc. (GF) are subject to investment risks. Investing in foreign securities, particularly those of emerging markets, presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Any fund that concentrates in a particular segment of the market will generally be more volatile than a fund that invests more broadly.

References to securities. transactions and holdings should not be considered a recommendation to purchase or sell a particular security and there is no assurance. as of the date of publication. that the securities remain in the portfolio. Additionally. it is noted that the securities or transactions referenced do not represent all of the securities purchased. sold or recommended during the period referenced and there is no guarantee as to the future profitability of any of the securities identified and discussed herein. We or our affiliates or persons associated with us. or such affiliates (associated persons) may maintain a long or short position in securities referred to herein. or in related futures or options; purchase or sell. make a market in. or engage in any other transaction involving such securities. and earn brokerage or other compensation in respect of the foregoing.

3

Important definitions S&P 500 is an index that represents the US equity market in general. NASDAQ 100 is an index that tracks the includes 100 of the largest domestic and international non-financial

securities listed on The Nasdaq Stock Market based on market capitalization. FTSE 100 is an index representing the 100 most highly capitalised UK companies listed on the London Stock

Exchange. DAX is a total rate of return index of 30 selected German blue chip stocks traded on the Frankfurt Stock Exchange. CAC is a market-capitalization-weighted index of the 40 most actively traded stocks on the Paris Bourse. TOPIX (Tokyo Price Index) is an index that measures stock prices on the Tokyo Stock Exchange. HANG SENG is a market capitalization-weighted stock market index in Hong Kong and is the main indicator of the

overall market performance in Hong Kong. China A-Share refers to an index that measures the performance of companies listed on the Shanghai Stock

Exchange. A-shares are quoted in yuan, and are only available to foreign investment through a qualified program. MSCI EMU (European Economic and Monetary Union) Index is a free float-adjusted market capitalization weighted

index that is designed to measure the equity market performance of countries within EMU. Euro Stoxx 50 Index is a market capitalization-weighted stock index of 50 large, blue-chip European companies

operating within eurozone nations. Stoxx 50 Index is a stock index representing 50 of the largest companies in Europe based on market capitalization.

Closely resembles the EURO STOXX 50 in methodology and construction, with the exception that it does not limit company selection to companies that have fully transitioned to the euro currency.

Midcap Market Performance Index is a total return index that is composed of various MDAX and TecDax issues, reflecting the performance of the mid-caps across all sectors of the Prime Segment.

Index performance includes reinvestment of all distributions and does not reflect fees or expenses. It is not possible to invest directly in an index.

4

Important definitions

EURIBOR (Euro Interbank Offered Rate) is the rate at which euro interbank term deposits within the euro zone are

offered by one prime bank to another prime bank. OECD refers to the Organisation for Economic Co-Operation and Development. ISM refers to the Institute for Supply Management. CPI (Consumer Price Index) is a standard measure of inflation. GDP (Gross Domestic Product) is a measure of a country's overall economic output. Repo rate is the agreed upon rate for money market repurchase agreements. EPS (Earnings Per Share) is the portion of a company's profit allocated to each outstanding share of common stock. PMI (Purchasing Managers Index) is an indicator of manufacturing sector economic health. Beta is a quantitative measure of the volatility of a given mutual fund, or portfolio, relative to the overall market. MUICP (Monetary Union Index of Consumer Prices) is an average measure of inflation for all countries located in the

Eurozone. Bund is the German government’s federal bond.. EBIT (Earnings Before Interest and Taxes), or operating income, is a measure of profitability that excludes interest and

taxes EV/EBITDA (Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization), or Enterprise

Multiple, is a ratio used to determine the value of a company.

5

Overview of Management SetupRainer Vermehren. Portfolio Manager•Portfolio manager for Emerging Markets Equity: Frankfurt •Joined DWS in 1997 after 3 years of experience as assistant to fund manager in Latin American equities at Morgan Stanley. New York •BA from University of Maryland; MBA from Fordham University

The Germany Funds

Updated: May 2010

6

Development of global markets

Source: BloombergAs of June 2010

LAST % 3M % 6M % 12M % 2Yr % 3Yr % 5Yr % 6M change

S&P 500 1.118 -2,8 1,2 22,4 -14,5 -25,9 -7,1 1

NASDAQ 100 1.913 -0,3 5,4 30,9 -0,1 -0,8 25,4 2

MEXICO 5.420 2,6 7,5 45,1 -7,0 -17,1 86,9 3

BRAZIL 3.274 -4,6 -2,3 30,2 -20,2 16,2 188,7 4

FTSE 100 5.251 -6,2 0,1 21,9 -5,8 -19,7 4,2 5

DAX 6.217 5,1 6,0 30,0 -4,4 -21,0 36,5 6

CAC 3.687 -5,1 -3,7 15,9 -17,2 -38,1 -11,5 7

SWITZERLAND 6.447 -5,4 0,1 20,2 -7,8 -29,4 3,5 8

AUSTRIA 2.428 -5,3 -0,9 18,3 -39,8 -50,1 -19,3 9

RUSSIA 752 -6,5 -2,0 31,1 -49,4 -34,9 51,4 10

TURKEY 832.736 8,7 11,2 56,3 45,7 17,2 91,1 11

POLAND 1.617 -1,8 1,2 26,7 -10,1 -35,6 8,5 12

TOPIX 885 -4,9 1,2 -1,8 -33,5 -49,6 -22,8 13

HANG SENG 8.903 -5,1 1,8 17,2 -10,7 -7,2 30,9 14

KOREA 487 3,9 5,8 31,4 4,3 2,4 77,8 15

SINGAPORE 1.573 -1,0 2,4 24,8 -7,0 -23,7 31,2 16

CHINA A-SHARE 2.667 -17,4 -18,9 -10,3 -2,0 -34,2 213,4 17

TAIWAN 266 -3,9 -3,2 20,0 -11,2 -23,3 3,3 18

INDIA 711 0,9 7,3 26,7 22,4 22,0 148,8 19

1,2

5,4

7,5

-2,3

0,1

6,0

-3,7

0,1

-0,9

-2,0

11,2

1,2

1,2

1,8

5,8

2,4

-18,9

-3,2

7,3

S&P 500

NASDAQ 100

MEXICO

BRAZIL

FTSE 100

DAX

CAC

SWITZERLAND

AUSTRIA

RUSSIA

TURKEY

POLAND

TOPIX

HANG SENG

KOREA

SINGAPORE

CHINA A-SHARE

TAIWAN

INDIA

7

2009 has been the sixth recession year in a row with strong DAX performance

As of April 30, 2010

Source: Thomson Reuters Datastream, Commerzbank (data untill 1991), Organisation for Economic Co-Operation and Development (OECD) Economic OutlookMarked: Recession years in Germany* OECD GDP estimates

Year GDP growthGermany in %

DAXperformance in %

Year GDP growthGermany in %

DAXperformance in %

1965 5.4 -12.5 1992 1.9 -2.11966 2.8 -20.1 1993 -0.8 46.71967 -0.3 49.2 1994 2.7 -7.11968 5.4 10.4 1995 2.0 7.01969 7.5 12 1996 1.0 28.21970 5 -28.7 1997 1.9 47.11971 3.1 6.2 1998 1.8 17.71972 4.3 13.8 1999 1.9 39.11973 4.8 -26.1 2000 3.5 -7.51974 0.9 1.4 2001 1.4 -19.81975 -0.9 40.2 2002 0.0 -43.91976 5 -8.5 2003 -0.2 37.11977 3.3 7 2004 0.7 7.31978 3 4.3 2005 0.9 27.11979 4.2 -13.5 2006 3.4 22.01980 1.4 -3.4 2007 2.6 22.31981 0.5 2 2008 1.0 -40.41982 -0.4 14.4 2009 -4.9 23.81983 1.6 40.2 2010* 1.4 3.01984 2.8 4.4 2011* 1.91985 2.3 66.41986 2.3 4.81987 1.4 -30.21988 3.7 33.41989 3.9 34.31990 5.2 -21.91991 5.1 12.9

8

Growth and inflation forecasts

As of April 26, 2010

Source: DB Global Markets Research

2008 2009 2010e 2011e 2008 2009 2010e 2011e

Global 2.7 -1.1 4.3 4.0 5.3 1.2 3.2 2.9

US 0.4 -2.4 3.8 3.6 3.8 -0.3 2.0 1.9

Japan -0.7 -5.2 2.8 0.9 1.4 -1.4 -1.2 -0.6

Euroland 0.6 -4.0 1.1 1.2 3.3 0.3 1.3 1.3

Germany 1.4 -5.0 2.0 1.3 2.8 0.2 0.9 1.0

0.0

Asia (ex Japan) 6.9 5.6 8.1 7.5 6.4 0.7 4.6 4.0

EMEA 4.3 -5.5 3.9 4.3 12.6 7.8 7.6 6.6

Latin America 4.3 -2.7 4.3 3.7 9.6 6.4 9.7 8.8

GDP growth (%) CPI (%)

9

Economic environment – macro themes

– Europe:

• Fiscal Crisis – north vs. south – core vs. periphery

• Austerity measures gaining pace – slowed growth

• EUR weakness – vs. US Dollar and Japanese Yen

• Industrial Production suggests recovery (exports)

– USA

• Recession ended in July 2009

• Steady recovery underway

– Emerging Markets

• GDP growth powering on

• Driving global demand

• China’s oil imports rose 29% YoY in 2010 YTD

10

Investment Strategy

– End of Q1 data confirm a sustainable global expansion

– Rising profits and asset prices are prompting firms to turn towards growth strategies (including new hires)

– The sovereign debt crisis particularly in the Eurozone will stay with us for many years to come

– The differentiating factor between the Eurozone debt problem and the US/UK debt problem is the ability/willingness to print money

– Central banks delaying the necessary hikes due to negative sovereign debt dynamics (Q4 2010?) prolongation of the liquidity rally, New asset bubbles building.

– Due to expected earnings growth of 15% - 20% (2011) the valuation of Equities is still very cheap (S&P 500, DAX 30 and Hang Seng indices all have PE’s around 12)

11

Investment Themes at DWS – in broad terms

Last Year's Investment Themes:

– Cyclicals

– Small and Mid-Cap stocks

– Sectors: Cyclicals, Energy, Industrials, Materials, Oil Service

– Regions: Emerging Markets.

Current Investment Themes:

– Defensives / High dividend payers

– Large Cap stocks

– Sectors: Industrials, Pharma, Staples, Telecoms and Utilities

– Regions: Emerging Markets, Core Developed

12

The European Equity Fund

Gerd Kirsten, CFA, Managing Director Head of Institutional Equities, Europe: Frankfurt Joined the Company in 2009. Previously, 1990 - 1999 worked in New York for HVB Capital,

the US investment bank of Hypovereinsbank and 1999 - 2004 with Deka Investment as senior portfolio manager, where he built the Small Cap Team, 2004 - 2009 Partner and Managing Director of F&V Vermoegensverwaltung AG and fund manager of the innovative Dynamic Europe Fund.

MBA in Finance from Columbia University, New York and Diplom-Kaufmann in Banking from Technical University, Berlin.

13

Average Annual Total Returns as of 5/31/10 Market Value Net Asset Value Benchmark*

1-Year 4.34 0.65 -2.31

3-year -20.53 -18.63 -17.23

5-year -1.55 -1.53 0.30

10-year -4.42 -3.85 -1.69

Life of fund 5.29 5.87 6.66

Cumulative Returns as of 5/31/10 Market Value Net Asset Value Benchmark*

YTD -20.15 -19.91 -20.76

1-month -11.91 -13.29 -13.14

3-month -8.16 -8.60 -10.97

Inception date 7/23/86 7/23/86 n/aTotal return based on net asset value reflects changes in the fund’s net asset value during each period. Total return based on market value reflects changes in market value. Each figure assumes that dividends and capital gains. if any. were reinvested. These figures will differ depending on the level of any discount from or premium to NAV at which the fund’s shares traded during the period. Returns during part or all of the periods shown reflect a fee and/or expense waiver. Without this waiver. returns would have been lower and any rankings/ratings might have been less favorable. If a voluntary fee waiver is applicable. it may be terminated or adjusted at any time without notice. *As of November 1. 2005. the benchmark is the MSCI EMU Index. Prior to November 1. 2005. the benchmark was the DAX Index. See slide #3 for index definitions. Index returns assume reinvestment of distributions and do not reflect fees or expenses. It is not possible to invest directly in an index.

Performance (in % USD)Performance information

All performance shown is historical. assumes reinvestment of all dividend and capital gain distributions. and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions. so that. when sold. shares may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted. Please visit www.eeafund.com or call (800)GERMANY and speak to a representative to obtain the fund’s most recent performance.

The European Equity Fund (EEA)

14

Top 10 Holdings

Stock Industry Weight

LVMH Louis Vuitton Cons. Disc. 4.3%

Henkel Cons. Stpl. 4.2%

Banco Santander C. H. Financials 4.1%

Daimler Cons. Disc. 3.9%

Telefonica Telecoms 3.8%

Dt. Telekom Telecoms 3.6%

Bayer Health Care 3.5%

Societe Generale Financials 3.5%

Dt. Lufthansa Industrials 3.3%

Siemens Industrials 3.0%

Updated: May 30, 2010


15

Industry Sector Breakdown1

Updated: May 2010

Relative Weights


Consumer Disc.; 13,6

Consumer Staples; 9,5

Energy; 5,1

Financials; 21,3

Health Care; 7,3

Industrials; 12,7

Information Tech.; 4,7

Materials; 14,8

Telecom Services; 7,3

Utilities; 3,6

Portfolio Weight % Overweight / Underweight in %

1 MSCI EMU Index Sector Scheme. See slide #3 for index definition.

-8,0 -6,0 -4,0 -2,0 0,0 2,0 4,0 6,0 8,0

Materials

Consumer Disc.

Health Care

Industrials

Information Tech.

Telecom Services

Consumer Staples

Financials

Energy

Utilities

16

Country Breakdown

Updated: May 2010

Relative Weights


Portfolio Weight % Overweight / Underweight in %

AT; 0,0 BE; 0,9

CH; 6,5

GE; 42,3

DK; 1,9ES; 8,8

FI; 0,0

FR; 21,0

GB; 4,5

GR; 0,0IE; 3,1

IT; 1,9LU; 0,0

NL; 6,1PT; 0,0SE; 3,1

Other; 0,1 -15,0 -10,0 -5,0 0,0 5,0 10,0 15,0 20,0

GE - GermanyCH - Switzerland

GB - UKSE - Sweeden

IE - IrelandDK - Denmark

OtherLU - Luxembourg

PT - PortugalGreece

AT - AustriaBE - BelgiumNetherlands

ES - SpainFI - Finland

IT - ItalyFR - France

17

Economic Scenarios


Last Year's Economic Themes:

– Expansive Central Bank Policies

– Germany and France emerged out of recession

– Excess Liquidity on the sidelines

Current Economic Themes:

– Weakening Euro

– Expansive Central Bank Policies due EURO fiscal crisis

– Improving Industrial Production trend

– Exporters benefiting from weaker Euro

18

Eurozone economic review

Source: Thomson Reuters Datastream

Eurozone GDP and ifo business climate index

Eurozone MUICP and core inflation rate

Repo rate and 3-month EURIBOR

2-year/10-year yield curve spread Spreads versus German Government Bonds

German interest rates

200 8 2009 20100.50

1 .00

1 .50

2 .00

2 .50

3 .00

3 .50

4 .00

4 .50

5 .00

5 .50

G erm any/E uro : R epoE U R IB O R 3M

0.50

1 .00

1 .50

2 .00

2 .50

3 .00

3 .50

4 .00

4 .50

5 .00

5 .50

S o u rc e : T h o m s o n D a ta s t re a m

2001 200 2 2003 200 4 2005 2006 200 7 2008 200 9-5

-4

-3

-2

-1

0

1

2

3

4

5

6

80

85

90

95

100

105

110

G D P (yoy)ifo (r.h .s .)


2001 200 2 2003 200 4 2005 2006 200 7 2008 200 9-1 .00

-0 .50

0

0 .50

1 .00

1 .50

2 .00

2 .50

3 .00

3 .50

4 .00

4 .50

In fla tion (yoy)C ore in fla tion (yoy)

-1 .00

-0 .50

0

0 .50

1 .00

1 .50

2 .00

2 .50

3 .00

3 .50

4 .00

4 .50


J J A S O N D J F M A M J J A S O N D J F M A M0

0.50

1 .00

1 .50

2 .00

2 .50

3 .00

3 .50

4 .00

4 .50

5 .00

2-year y ie ld10-year y ie ld

0

0 .50

1 .00

1 .50

2 .00

2 .50

3 .00

3 .50

4 .00

4 .50

5 .00


J J A S O N D J F M A M J J A S O N D J F M A M-0 .50

0

0 .50

1 .00

1 .50

2 .00

2 .50

10Y y ie ld - 2Y y ie ld

-0 .50

0

0 .50

1 .00

1 .50

2 .00

2 .50


200 8 2009 201 00

1

2

3

4

5

6

7

G reeceIta lyIre land

S pa in

0

1

2

3

4

5

6

7


19

Peripheral Europe: Yield curvesTerm structure (in %) in relation to Germany

Source: Thomson Reuters Datastream

Ireland

SpainItaly

Greece

0 5 10 15 20 25 300

1

2

3

4

5

6

G erm anyIta ly

M aturity in yea rs

Source: Thomson Datastream

0 5 10 15 20 25 270

1

2

3

4

5

6

G erm anyS pa in

M aturity in years

Source: Thomson Datastream

0 5 10 15 20 25 30310

1

2

3

4

5

6

7

8

9

G erm anyG reece

M aturity in years

Source: Thom son Datastream

0 5 10 15 20 25 270

1

2

3

4

5

6

G erm anyIreland

M aturity in years

Source: Thom son Datastream


20

European equities – relative valuation

Dividend yield to Bund (in %)

Source: Institutional Brokers Estimate System (IBES), Thomson Reuters DatastreamPerformance is historical and does not guarantee future returns.

2001 2002 2003 2004 2005 2006 2007 2008 2009

-4

-3

-2

-1

0

1

2

3

Euro S toxx 50 (d iv idend y ie ld) - 10Y Bund yie ld

Average

Average - 1 STD V

Average + 1 STD V

-4

-3

-2

-1

0

1

2

3


21

European financing needsGreece. Italy need to speed up issuance activity

As of March 31. 2010

Source: DB Advisors. UBS

Bond issuance activity 2010

2010 total (EUR bn)

Y-T-D

(EUR bn)

% of

total

Italy 250.0 77.4 31.0

Germany 207.0 58.0 28.0

France 188.0 65.4 34.8

Spain 97.0 29.9 30.8

Netherlands

50.0 20.4 40.9

Greece 45.6 18.4 40.4

Belgium 34.8 12.5 35.9

Austria 23.0 7.3 31.8

Ireland 20.0 10.2 51.0

Portugal 20.0 6.0 30.0

Finland 15.5 5.0 32.3

Total 950.9 310.5 32.6

– Greece did three benchmark transaction in the capital market 2010; needss further capital till the end of May

– Italy is lying behind schedule in issuance. which is concerning given the huge financing needs of EUR 250 bn

– The Netherlands. Austria and esp. Ireland are well on track. with the latter having done 1/3 of full 2010 issuance in January


22

Europe – absolute earnings

Euro Stoxx 50 earnings Stoxx 50 earnings

The forecasts expressed are as of June 7, 2010. There is no guarantee that the forecasts expressed herein will come to pass.

Source: IBES, Thomson Reuters Datastream, DB AdvisorsPerformance is historical and does not guarantee future returns.

127

165172

126

93

138

224

261

284273

211

192

243

284

313

0

50

100

150

200

250

300

350

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

e

2010

e

2011

e

2012

e

130

170

212

132

87

161

239

284

315

342

256

218

258

301

334

0

50

100

150

200

250

300

350

400

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

e

2010

e

2011

e

2012

e


23

-20

-10

0

10

20

30

40

50

60

Q4

05

Q1

06

Q2

06

Q3

06

Q4

06

Q1

07

Q2

07

Q3

07

Q4

07

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

600

800

1,000

1,200

1,400

1,600

1,800

Company count Market cap weighted MSCI Europe (r.h.s.)

Companies continued to beat earnings estimates ...

– An increasing number of companies could beat consensus estimates and confirm the improving environment

European earnings season (net % companies beating estimates) vs. MSCI Europe

As of May 5, 2010

Source: UBS, IBES Performance is historical and does not guarantee future results.


24

Margins recovered, revenues started to follow

As of May 5, 2010

Source: UBS, IBES, MSCI

Earnings vs. revenue surprises (market cap weighted) in %

Earnings vs. revenue surprises (company count) in %

-20

-10

0

10

20

30

40

50

60

Q2 09 Q3 09 Q4 09 Q1 10

Earnings surprises Revenue surprises

-20

-10

0

10

20

30

40

50

Q2 09 Q3 09 Q4 09 Q1 10

Earnings surprises Revenue surprises


25

Manufacturing PMI* & Industrial Production

*Purchasing Managers Index.Source: Capital Economics, June 2010


– Recovery on track – slowdown possible

26

Euro-Zone Industrial Production

Source: Capital Economics, June 2010


– Improving Trend YTD

27

Last Year's Investment Themes:

– Cash-for-clunkers

– Switch into cyclicals

– Financials "back to normal"

– Emerging Markets early recovery


– Emerging Markets Watch China for potential overheating

– Commodities Oil now also moving

– Earnings Substantial Momentum

– Own "North" not "South" / Own "Core" not "Peripheral"

Investment Themes


28

Peripheral Europe: 10-year spread vs. Bund

Source: Thomson Reuters DatastreamPerformance is historical and does not guarantee future results.

2007 2008 2009 2010

-1

0

1

2

3

4

5

6

7

G reece

Ita ly

Ire land

Spa in

-1

0

1

2

3

4

5

6

7


29

Top & bottom holdings relative to index

Updated: May 2010


Company Sector

Deviation from benchmark

% points

Henkel Staples 3.9LVMH Cyclicals 3.3Software AG Industrials 2.9

E.ON Utility -0.2GdF Suez Utility -0.3Total Energy -1.7

30

Balance between cyclicals and staplesHenkel

Company profile:– Cyclical: Co. manufactures industrial, and consumer chemical products, adhesives

and more. – Staples: Co. manufactures soaps, skin care products, hair dyes, perfumes,

detergents, and more.– Co. is #1 in categories / markets representing 26% of sales. …#2 representing 57% of

sales.

Why we like it: – Benefits from the weaker Euro – Sustainable top line growth– Market leader in many of the markets it serves

Catalysts:– Best value / growth proposition in the European Home Personal Care (HPC) segment. – Co. displaying the highest 3-year EPS CAGR* (27%) among European HPC peers. – Henkel is undervalued vs. peers both on 2010 and 2011 figures.


*CAGR is the compound annual growth rate. Updated: June 2010

31

The luxury demand puzzleLVMH – Where double digit growth is not a function of the cyclical recovery

Company profile:– Unparalleled portfolio of brand franchises which includes: Vuitton, Dior, Givenchy,

Veuve Cliquot, Hennessy, Tag Heuer, Zenith– Unrivalled global footprint in the industry – Strong top management with a long and successful track record of M&A

Sources of long-term structural growth: – Plutonomy effect within societies with the rich spending more on quality and brand– Emerging market consumers will continue to generate 80% – 90% of the growth in

the sector for the next three years (currently ca. 35% of sales)– Branding trend in consumer products offering pricing power to market leaders with

best recognition and distribution network

Catalysts:– Double digit sales growth in fashion and leather goods against tough comps– Annual General Meeting in mid-April when the CEO lays out his vision for the

sector and the company's outlook– Further growth in analyst earnings upgrades


Updated: June 2010

32

Top innovation playSoftware AG 2.7%*

Market cap: EUR 2.7 billionSector: Software

Global #3 provider of software integration platforms (webMethods) and the leading provider of Business Process Management software (Aris/IDS Scheer)

High profitability (2010E: EBIT margin c23%) and high visibility with c70% of sales being recurring

Future growth comes from: Innovation. geographic expansion. and cross selling synergies from past acquisitions.

High earnings growth from continued increase in efficiency and cost reductions. while successfully integrating IDS Scheer. lifting EBIT* margins.

Attractive valuation at 14.6x PE 2011e.

*Earnings before interest and taxesUpdated: May 2010


33

The New Germany Fund

Petra Pflaum, CEFA, Managing Director Senior portfolio manager for German and European Small / MidCaps: Frankfurt Joined DWS European Small and Mid-Cap team in 2002 after joining DB Advisors' equity

investment management team in 1999. From 1996 - 1998 she was a research analyst for retail and consumer goods at BHF-Bank Frankfurt.

Degree in Business Administration ("Diplom-Betriebswirtin"). Technical University of Trier; one year at University of St. Thomas. USA; completed bank training program ("Bankkauffrau") at BHF Bank, Frankfurt

34

Average Annual Total Returns as of 5/31/10 Market Value Net Asset Value Benchmark*

1-Year 29.65 17.72 15.81

3-year -12.41 -11.00 -12.96

5-year 7.24 7.32 5.60

10-year 1.85 0.77 -0.79

Life of fund 2.95 4.84 2.58

Cumulative Returns as of 5/31/10 Market Value Net Asset Value Benchmark*

YTD -7.09 -10.10 -11.90

1-month -13.90 -12.55 -12.21

3-month -1.77 -4.28 -5.19

Inception date 1/30/90 1/30/90 n/aTotal return based on net asset value reflects changes in the fund’s net asset value during each period. Total return based on market value reflects changes in market value. Each figure assumes that dividends and capital gains. if any. were reinvested. These figures will differ depending on the level of any discount from or premium to NAV at which the fund’s shares traded during the period. Returns during part or all of the periods shown reflect a fee and/or expense waiver. Without this waiver. returns would have been lower and any rankings/ratings might have been less favorable. If a voluntary fee waiver is applicable. it may be terminated or adjusted at any time without notice. * Midcap Market Performance Index. See slide #3 for index definitions. Index returns assume reinvestment of distributions and do not reflect fees or expenses. It is not possible to invest directly in an index.

Performance (in % USD)Performance information

All performance shown is historical. assumes reinvestment of all dividend and capital gain distributions. and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions. so that. when sold. shares may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted. Please visit www.newgermanyfund.com or call (800)GERMANY and speak to a representative to obtain the fund’s most recent performance.

The New Germany Fund (NGF)

35

Top 10 Holdings

Stock Industry Weight

Lanxess Materials 5.4%

Heidelberg Cement Materials 5.0%

GEA Group Industrials 4.8%

Hochtief Industrials 4.6%

Software AG Info. Tech 4.5%

EADS Industrials 4.3%

Wacker Chemie Materials 4.2%

Rheinmetal Industrials 4.1%

Stada Arzneimittel Healthcare 3.7%

Wincor Nixdorf Info. Tech. 3.2%



36

Industry Sector Breakdown1


Relative Weights

Portfolio Weight % Deviation in % points from benchmark


1 MSCI Sector Scheme

Consumer Disc.; 11,5

Consumer Staples; 0,0

Financials; 5,0

Health Care; 12,6

Industrials; 35,0

Technology; 14,3

Materials; 20,4

Telecom Services; 1,1 -4,0 -2,0 0,0 2,0 4,0 6,0

Technology

Materials

Consumer Disc.

Telecom Services

Industrials

Consumer Staples

Health Care

Financials

37

Last Year's Investment Themes: (same as this years)

– “Die Abwrackprämie” – Germany’s most popular export good

– Cyclical Recovery (more beta) / alternative energy / materials

– Restructuring / Integration

– Exposure to Asian growth markets


– Automotive industry (ongoing cyclical recovery)

– Restructuring / Integration

– Exposure to Asian growth markets

– US$ profiters / Industrials (Exporters)

Investment Themes


38

German equities – relative valuation

Dividend yield to Bund (in %)

Source: IBES, Thomson Reuters DatastreamPast performance does not guarantee future results.

80 82 84 86 88 90 92 94 96 98 00 02 04 06 08

-7

-6

-5

-4

-3

-2

-1

0

1

2

3

D AX (d ividend yie ld) - 10Y bund yie ld

Average

Average - 1 STDV

Average + 1 S TDV

-7

-6

-5

-4

-3

-2

-1

0

1

2

3


39

Top & bottom holdings relative to index



Company Sector

Deviation from benchmark

% points

Software AG Software 2.5Wacker Chemie Chemicals 2.3Lanxess Materials 2.1

Quiagen Health Care -1.7Heidelbergcement AG Industrials -2.4EADS Industrials -2.6

40

Top key convictionsSoftware AG 2.7%*

Market cap: EUR 2.7 billion

Sector: Software

– Global #3 provider of software integration platforms (webMethods) and the leading provider of Business Process Management software (Aris/IDS Scheer)

– High profitability (2010E: EBIT* margin c23%) and high visibility with c70% of sales being recurring

– Future growth comes from: Innovation, geographic expansion, and cross selling synergies from past acquisitions.

– High earnings growth from continued increase in efficiency and cost reductions, while successfully integrating IDS Scheer, lifting EBIT* margins.

– Attractive valuation at 14.6x PE 2011e.


*Earnings Before Interest and Taxes.Updated: May 2010

41

Top key convictionsWacker Chemie 2.4%*


Sector: Chemicals

– Wacker is a world leading supplier of silicon for the photovoltaic industry, among the global suppliers of semiconductor grade silicon, and an important regional provider of polymers, silicon and fine chemicals.

– In photovoltaic silicon, Wacker benefits from an excellent cost position, still tight supply-demand dynamics and market growth from e.g. Germany and Italy.

– The polymer division should see growth 2010 and its semiconductor unit should see a significant earnings swing.

– Management already guided for a strong Q1, based on improving fundamentals in all divisions.

– Attractive valuation at an EV/EBITDA* est. of 2010 of 5.8x. vs. REC (Renewable Energy Corp) at 11.4x.


*Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization.Updated: May 2010

42

Top key convictionsLanxess 5.3%*


Sector: Chemicals

– Lanxess is one of the leading special chemicals companies, focused on premium products like special plastics and rubber.

– After Lanxess already surprised with very good Q1 results, management has guided for a strong Q2 as well. Especially Performance Polymers (c48% of total sales) excelled, with +85% growth driven by strong demand from Brazil, China and India and a positive YoY development of natural rubber prices. Further, Lanxess bringing forward the completion of its world scale (100,000 tones) rubber plant in Singapore and the anticipating increasing demand on the back of several global tire labeling initiatives (e.g. EU, North America, Japan) bodes well for future growth.

– Attractive valuation of 11.3x PE and 5.4x EV/EBITDA* based on IBES 2011 estimates, while showing a clear upward trend in earnings expectations, up almost 150% in the last nine months.


*Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization.Updated: May 2010

Fund Performance

The Germany Funds

June 28. 2010

Annual Shareholder Meeting

Fund Performance

All performance is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when sold, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please visit www.dws-investments.com for the fund’s most recentperformance.

Fund's share price discount to net asset value and trend line

Discount trend EEA

E

E

A -30

-25

-20

-15

-10

-5

0

5

10

Jan-

04

Apr-0

4

Jul-0

4

Oct-0

4

Jan-

05

Apr-0

5

Jul-0

5

Oct-0

5

Jan-

06

Apr-0

6

Jul-0

6

Oct-0

6

Jan-

07

Apr-0

7

Jul-0

7

Oct-0

7

Jan-

08

Apr-0

8

Jul-0

8

Oct-0

8

Jan-

09

Apr-0

9

Jul-0

9

Oct-0

9

Jan-

10

Apr-1

0

Discount Trend Linear (Discount Trend)

Fund Performance


Discount trend GF

-30

-25

-20

-15

-10

-5

0

5

10

Jan-

04

Apr-0

4

Jul-0

4

Oct-0

4

Jan-

05

Apr-0

5

Jul-0

5

Oct-0

5

Jan-

06

Apr-0

6

Jul-0

6

Oct-0

6

Jan-

07

Apr-0

7

Jul-0

7

Oct-0

7

Jan-

08

Apr-0

8

Jul-0

8

Oct-0

8

Jan-

09

Apr-0

9

Jul-0

9

Oct-0

9

Jan-

10

Apr-1

0



Fund Performance


Discount trend CEE

-30

-25

-20

-15

-10

-5

0

5

10

Jan-

04

Apr-0

4

Jul-0

4

Oct-0

4

Jan-

05

Apr-0

5

Jul-0

5

Oct-0

5

Jan-

06

Apr-0

6

Jul-0

6

Oct-0

6

Jan-

07

Apr-0

7

Jul-0

7

Oct-0

7

Jan-

08

Apr-0

8

Jul-0

8

Oct-0

8

Jan-

09

Apr-0

9

Jul-0

9

Oct-0

9

Jan-

10

Apr-1

0



47

Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Shares of closed-end funds frequently trade at a discount to the net asset value. The price of a fund’s shares is determined by a number of factors, several of which are beyond the control of the fund. Therefore, a fund cannot predict whether its shares will trade at, below or above net asset value. The European Equity Fund, Inc. (EEA) and the New Germany Fund, Inc. (GF) are subject to investment risks. Investing in foreign securities, particularly those of emerging markets, presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Any fund that concentrates in a particular segment of the market will generally be more volatile than a fund that invests more broadly. The Central Europe and Russia Fund, Inc. (CEE) is subject to investment risks. The fund is non-diversified and can take larger positions in fewer issues, increasing its potential risk. Investing in foreign securities, particularly those of emerging markets, presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Any fund that concentrates in a particular segment of the market will generally be more volatile than a fund that invests more broadly.

IMPORTANT – PLEASE NOTE

48

This presentation shall not constitute an offer to sell or a solicitation to buy. nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

The sources. opinions and forecasts expressed are as of June 28, 2010. There is no guarantee that the views opinions and forecasts expressed herein will come to pass. This information is subject to change at any time based upon market and other conditions and should be construed as a recommendation for any specific security. Past performance does not guarantee future results.

For Further Information please call Investor Services at 800-GERMANYOrvisit us on the web at www.germanyfund.com

This presentation is provided for informational purposes only and is not intended for trading purposes. R-4804-3 (6/10)

IMPORTANT – PLEASE NOTE (continued)

NOT FDIC/NCUA INSURED MAY LOSE VALUE NO BANK GUARANTEE NOT A DEPOSITNOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

fund performance the germany funds june 28. 2010 annual shareholder meeting

Documents