Mutares Logo

Mutares with new revenue record after the first nine months 2021 – full transaction pipeline in combination with successful capital increase accelerates growth course

Munich, 9 November 2021 – Mutares SE & Co. KGaA (ISIN: DE000A2NB650) (“Mutares” and, together with its consolidated subsidiaries, “Group”) generated consolidated revenues of EUR 1,762.7 million in the first nine months of financial year 2021 (Q3 2020 YTD: EUR 1,073.3 million). The significant revenue growth is primarily based on the continued high level of transaction ¬activity, with ten acquisitions already completed.
Group EBITDA more than tripled year-on-year – also due to the high transaction activity – and amounted to EUR 496.5 million in the first nine months of financial year 2021 (Q3 2020 YTD: EUR 134.7 million). Adjusted EBITDA1) adjusted for special effects amounted to EUR -30.3 million (Q3 2020 YTD: EUR -16.6 million). As expected, the still negative earnings contributions from the recently acquired investments more than compensated for the restructuring successes at the existing investments.
Cash and cash equivalents in the Group amounted to EUR 171.2 million as of 30 September 2021 (31 December 2020: EUR 145.3 million), and the equity ratio of Mutares Group increased significantly to 27% compared to 16% as of 31 December 2020.
Mutares also recorded revenue growth of 55% to EUR 35.6 million (Q3 2020 YTD: EUR 23.0 million) in the first nine months of 2021 as a result of the portfolio being expanded through the transactions. The net result amounted to EUR 17.6 million (Q3 2020 YTD: EUR -5.6 million), mainly due to the profit contribution from the sale of the shares in STS Group AG.
High dynamics in transactions
The high momentum in transaction activity from the first half of 2021 continued in the third quarter. In total, Mutares successfully completed five exits and ten acquisitions in the first nine months of the financial year:
Following the sale of Balcke-Dürr Rothemühle to the Howden Group, of Nexive to Poste Italiane and the shareholding in STS Group AG to the Adler Pelzer Group in the first half of 2021, the exits of Cenpa as well as TréfilUnion, EUPEC and La Meusienne took place in the third quarter. The initiated sale of Norsilk to Protac was also successfully completed after 30 September 2021.
In addition, Mutares has consistently exploited the opportunities on the acquisition side in the first nine months of 2021 and made a total of ten acquisitions. The closing of the acquisitions of Rasche Umformtechnik GmbH & Co. KG as an add-on for PrimoTECS and Ganter Construction & Interior GmbH as a new platform acquisition for the segment Goods & Services also took place in the meantime. The announced acquisition of Toshiba Transmission & Distribution Europe S.p.A. as an add-on for Balcke-Dürr Group and the acquisition of Allianceplus AB as a new platform are still expected for the fourth quarter of financial year 2021.
Full transaction pipeline
The current market situation still offers unique opportunities to accelerate growth and strongly increase shareholder value. The M&A pipeline is currently very well filled with a large number of interesting projects with a cumulative revenue volume of around EUR 9 billion and offers Mutares numerous opportunities. In order to best exploit these unique opportunities, Mutares successfully placed a capital increase with a volume of around EUR 100 million in October 2021. In this context, Mutares was also uplisted to the Regulated Market (Prime Standard), which is associated with the highest transparency standards. This makes the Mutares share accessible to a broader and more international group of investors.
The growth plans at Mutares are also accompanied by an expansion of the regional presence: At the beginning of November, the ninth M&A location in Europe was opened in Amsterdam, with which the expansion in the Benelux region is to be driven forward. Further branches in Finland and Poland are currently being planned. The increased coverage of Europe should contribute to the achievement of the growth targets in accordance with the increased guidance until 2023.
Revenues grow significantly in all segments
In the Automotive & Mobility segment, revenues in the first nine months of financial year 2021 were EUR 508.8 million (Q3 2020 YTD: EUR 394.3 million). The main reason for the significant growth is the contribution of SFC Solutions and LMS, but also a slight organic revenue growth after the slump due to the COVID-19 pandemic in financial year 2020. The segment’s EBITDA of EUR 95.2 million was above the prior-year figure (Q3 2020 YTD: EUR 56.8 million) due to the effects from favorable acquisitions (“bargain purchase”) of LMS and ISH. Adjusted EBITDA adjusted for special effects improved to EUR -10.5 million (Q3 2020 YTD: EUR -16.7 million), to which the STS Group, which has since been sold, and KICO Group contributed in particular.
The Engineering & Technology segment recorded an increase in revenue to EUR 650.1 million in the first nine months of the financial year 2021 (Q3 2020 YTD: EUR 388.4 million). The new acquisitions, including Lacroix + Kress and La Rochette Cartonboard, were the main contributors to the increase. In the reporting period, segment EBITDA reached EUR 48.1 million (Q3 2020 YTD: EUR 27.3 million), driven in particular by the acquisitions of Clecim and La Rochette and the exit of Balcke-Dürr Rothemühle. Adjusted EBITDA was EUR -9.9 million compared to EUR 7.0 million in the previous year, also due to the still negative earnings contributions from the new acquisitions.
Revenues in the Goods & Services segment grew to EUR 603.3 million in the first nine months of financial year 2021 (Q3 2020 YTD: EUR 290.6 million). The increase is mainly due to the acquisitions of Lapeyre, Terranor and SABO. Segment EBITDA amounted to EUR 379.2 million (Q3 2020 YTD: EUR 56.6 million). The disposal of Nexive and the acquisition of Lapeyre had a positive effect here. Adjusted EBITDA was EUR -11.6 million after nine months in the financial year 2021 (Q3 2020 YTD: EUR -6.0 million). The still negative earnings contributions from the new acquisitions more than compensate for the pleasing restructuring successes at BEXity, Terranor and SABO.

Adjusted EBITDA differs significantly along the three phases of value creation that investments usually go through during their membership in the Mutares Group (Realignment, Optimization and Harvesting).

Outlook
Based on the high level of transaction activity and the overall successful development in the course of financial year 2021 to date, the Management Board continues to expect an extraordinary increase in consolidated revenues to at least EUR 2.4 billion in financial year 2021, with all segments contributing to revenue growth. Compared to the financial year 2020, growth of more than 50% is thus planned.
This guidance is subject to certain uncertainties in connection with the further development of the COVID-19 pandemic and, as a result, in particular the supply situation for raw materials and precursors. With limited capacities, the high demand means that the supply situation within the supply chains could remain tense. Although Mutares has taken precautionary measures in the portfolio companies, there is a risk of supply bottlenecks for individual portfolio companies in case of further aggravation.
The Management Board continues to expect that a dividend at least at the level of the market expectation is also ensured for the financial year 2021, in particular through successful exits.
Through the capital increase completed in October, Mutares has secured the financial flexibility to fully exploit the opportunities arising from the well-filled transaction pipeline. Therefore, the Management Board also confirms the medium-term Group revenues target for the financial year 2023 of at least EUR 5 billion, which was increased in September 2021, as well as the target to achieve a net result at Mutares level in the range of 1.8% to 2.2% of Group revenues.
Conference call today at 2:00 p.m.
A video and telephone conference (webcast) in English will be held today at 2:00 p.m. (CET) for analysts, investors and members of the press. Registration for this event is possible by sending an e-mail to ir@mutares.de. The webcast presentation can be downloaded at www.mutares.de/investor-relations.
1) Adjusted EBITDA is an EBITDA performance indicator adjusted for special factors. The calculation is based on reported Group EBITDA adjusted for transaction-related income (bargain purchases), restructuring and other non-recurring expenses, and deconsolidation effects.

Company profile of Mutares SE & Co. KGaA
Mutares SE & Co. KGaA, Munich (www.mutares.com), as a listed private equity holding company with offices in Munich (HQ), Amsterdam, Frankfurt, London, Madrid, Milan, Paris, Stockholm and Vienna, acquires small- and medium-sized companies and parts of groups in special situations with headquarters in Europe that show significant potential for operational improvement and are sold again after undergoing a repositioning and stabilization process. Mutares actively supports and develops its portfolio companies with its own investment and operations teams as well as through acquisitions of strategic add-ons. With a focus on sustainable growth of the portfolio companies, the objective is to achieve a significant increase in value with a ROIC (return on invested capital) of 7 to 10 times on the total investment. In the financial year 2020, Mutares generated consolidated annual revenues of around EUR 1.6 billion with more than 12,000 employees worldwide in the Group. For the financial year 2021, consolidated revenues of at least EUR 2.4 billion are already expected. Based on this, consolidated revenues are to be expanded to at least EUR 5 billion by 2023. As the portfolio grows, so do consulting revenues, which together with portfolio dividends and exit proceeds accrue to the Mutares Holding. At this level, the medium- to long-term target for dividend-relevant net income is 1.8% to 2.2% of consolidated revenues. Mutares is strongly committed to a sustainable dividend policy consisting of a base dividend and an exit-dependent performance dividend. The shares of Mutares SE & Co. KGaA are listed on the Frankfurt Stock Exchange under the ticker symbol “MUX” (ISIN: DE000A2NB650).

For more information, please contact:
Mutares SE & Co. KGaA
Investor Relations
Phone +49 89 9292 7760
E-mail: ir@mutares.de
www.mutares.de
Contact Press
CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Phone +49 89 125 09 0333
E-mail: sh@crossalliance.de
www.crossalliance.de
Contact for press inquiries in France
CLAI
Gaëtan Commault – gaetan.commault@clai2.com / +33 06 99 37 65 64
Dorian Masquelier – dorian.masquelier@clai2.com / +33 07 77 26 24 57

Linda Lenz

"Creativity and perfection are not mutually exclusive, but complementary."

IR Consultant at CROSS ALLIANCE since 2021.
Linda Lenz’s core competencies are public and influencer relations as well as project management.
With a a M.Sc. degree in Strategic Communication and PR and a B.A. in English Studies and Communication and Media Studies, she is fully committed to her clients because she always insists on doing the job right.
4 years of experience in Public Relations and Influencer Relations expertise in the Automotive and Energy Special Supporter ESG industries.

Jens Jüttner

"Designing a customised communication strategy for clients is what drives me. Their success is my reward."

Jens Jüttner has extensive experience in news and business journalism across all presentation formats and channels. As an investor relations consultant, he devotes his energies to the regular communications of listed companies and also provides support with their media relations activities.

Senior Consultant at CROSS ALLIANCE since 2018
BA in Journalism / Banking Officer
Five years as a member of the editorial team of business and investor magazine FOCUS-MONEY
Three years as Head of Department for “Week”
Extensive experience in writing advertorials
Shortlisted for the Alternative Media Prize 2013
Social Media Manager (Chambers of Industry and Commerce) – final project: Development of a hybrid social media campaign for LinkedIn and Twitter for an IR and media agency

T: +49 89 125 09 03 32

Markus Horntrich

"My maxim to ensure optimum performance on all your communications issues: Get up early, give it your all and work hard."

Markus Horntrich is a stock market enthusiast and, as a former editor-in-chief, has extensive experience in financial journalism and a broad network, which he uses as a basis for all aspects of PR/IR communication.

Economics graduate

Self-employed PR/IR consultant and Senior Consultant at CROSS ALLIANCE
Author
19 years at investor magazine DER AKTIONÄR
8 years as editor-in-chief at DER AKTIONÄR

T: +49 89 125 09 03 30
M: +49 170 321 42 26

Michael Lang

"As a former editor-in-chief and full-blooded journalist, a matter particularly close to my heart is ensuring that our clients get noticed in just the right way in the media."

As an experienced business journalist, Michael Lang uses his extensive network in the financial community to give clients the best media relations.

Partner at CROSS ALLIANCE since 2013
Self-employed professional in investor relations since 2010
Head of IR at IBS AG (Prime Standard) for four years
Ten years as a member of the editorial team of financial magazine DER AKTIONÄR (“2010 award for investor magazine of the year”), acting as editor-in-chief and deputy editor-in-chief, in both positions for three years
15 years of experience in financial journalism
Degree in Business Mathematics, Bayreuth University

T: +49 89 125 09 03 34

Susan Hoffmeister

"I support every company with communication just as I do my own. That's my biggest motivation."

Managing Partner Susan Hoffmeister supports listed companies with their investor relations.

Founder & Managing Director of CROSS ALLIANCE communication GmbH
Degree in Business Administration, BA in Finance & Accounting, MBA
Self-employed entrepreneur in investor relations since 2006
Deutsche Börse qualified Supervisory Board member since 2017
Member of the Supervisory Board of LEHNER INVESTMENTS AG
Head of Corporate Communications at Siemens London for five years
Head of IR at various listed companies in the software and IT industry for six years

Extensive IPO experience
T: +49 89 125 09 03 33

Sara Pinto

"My motto is 'Create value through communication'. My international professional background helps me to achieve this. I work with clients to get them the best results."

As an investor relations expert and member of the Cross Alliance team, Sara Pinto places particular emphasis on providing her clients with in-depth consultations and on strategic communication. Her specialist area is sustainability.

Consultant at CROSS ALLIANCE since 2019

MA in Business Administration & Management
Five years as Market Research Manager at FOCUS-MONEY

Extensive experience in B2B sales
Expert in CSR and ESG – contact person for sustainability strategy development, implementation of ESG criteria in corporate communications, and sustainability reporting
Language proficiency: Italian (mother tongue), German, English, Spanish

T: +49 89 125 09 03 35

Sven Pauly

"I develop innovative concepts for our clients, which actively contributes to their success."

Investor relations consultant Sven Pauly has extensive experience in TV news production, and specialises in reporting and regular communications for listed companies.

Senior Consultant at CROSS ALLIANCE since 2016
MA in Corporate Communications/PR
Consultant for investor relations and corporate communications
Extensive experience in capital market consultation
Has held roles in designated sponsoring and public affairs
Over ten years of experience in TV news production

T: +49 89 125 09 03 31