Blue Cap Ag · XETR:B7E

Blue Cap — m:access Conference 2022

44 slides from Blue Cap's conference presentation, Jul 13, 2022

  1. Slide 1: Investor Presentation m:access Conference

    Investor Presentation m:access Conference July 13th 2022 Blue Cap AG

  2. Slide 2: Blue Cap at a glance

    Blue Cap at a glance: Listed Private Equity company with investment focus on German-speaking SMEs Buy 9 €267m Transform Portfolio companies, 2021 group revenue Sell primarily control investments (+15% yoy) Founded in 9.1% 5 2021 adjusted EBITDA margin acquisitions in last 15 months 2006 including th

  3. Slide 3: Agenda

    Agenda 01_ Investment Highlights 02_ Business Performance 03_ Financial Performance 04_ ESG Focus

  4. Slide 4: Investment Highlights

    Investment 01_ Highlights

  5. Slide 5: Unique opportunity to invest in German SME companies

    Investment Highlights Unique opportunity to invest in German SME companies 01_ Proven and unique business model 02_ Diversified portfolio with high value potential 03_ Track record for value growth 04_ Substantial earnings growth 05_ Solid financial foundation 06_ Attractive dividend yield Blue Cap

  6. Slide 6: Proven and unique business model

    01_ Proven and unique business model BUY TRANSFORM SELL ▪ Investment situations, among Development & implementation of ▪ Active sales process: others: individual strategies under independent best-owner approach management: Succession ▪ Passive sales process: Strengthen growth Targeting through Carve

  7. Slide 7: Differentiation to other listed investment companies

    01_ Proven and unique business model: Differentiation to other listed investment companies “Best Owner” approach Buy, Buy,Turnaround, Sell Turnaround, Sell ▪ We keep our portfolio companies as long as we are the “Best Owner”, and value creation is still possible with Blue Cap as main shareholder ▪ W

  8. Slide 8: Diversified portfolio with high value potential (1/4)

    02_ Diversified portfolio with high value potential (1/4) Portfolio of Net asset value share by segment (*) ▪ 9 companies with headquarters in Germany % ▪ More than 1,300 employees Business ▪ Four major segments represent the value of the group (*) Services 18% Plastics 40% Medical 19% 20% Adhesives

  9. Slide 9: Diversified portfolio with high value potential (2/4)

    02_ Diversified portfolio with high value potential (2/4) Plastics: 40%* ▪ Manufactures lightweight plastic boards from recycled plastic primarily for the packaging and automotive industry ▪ Equity story: profits from sustainability Invest: 2019 / 100% trends, new applications/markets Revenue: € 59

  10. Slide 10: Diversified portfolio with high value potential (3/4)

    02_ Diversified portfolio with high value potential (3/4) Adhesives & Coatings: 20%* ▪ Niche supplier of adhesive products for different industries ▪ Equity story: efficiency improvements, Invest: 2009 / 100% improve customer mix, digitization Revenue: € 36 mn ▪ Leading international company for sel

  11. Slide 11: Diversified portfolio with high value potential (4/4)

    02_ Diversified portfolio with high value potential (4/4) Business Services: 18%* ▪ Electronic product and systems distributor with a special focus on value-add through technical consulting and development expertise ▪ Equity story: further develop profitable growth story, Invest: 2021 / 93% Revenue:

  12. Slide 12: Track record for value growth

    03_ Track record for value growth Production Technology Metal Technology Medical Technology Medical Technology Adhesive Technology ▪ Investment: 2011 ▪ Investment: 2016 ▪ Investment: 2014 ▪ Investment: 2012 ▪ Investment: 2009 ▪ Exit: 2022 ▪ Exit: 2021 ▪ Exit: 2020 ▪ Exit: 2018 ▪ Exit: 2017 ▪ Buyer:

  13. Slide 13: Track record for value growth: Net Asset Value

    03_ Track record for value growth Net Asset Value as of December 31, 2021 Change of EUR mn 172.8 calculation method 22.0 ▪ Our target: Indication -1.9 153.9 Indic. of hypothetical sales 33.4 NAV per proceeds in line with 119.3 share the market 2.3 14.0 ▪ Problem: The DCF € 39.30 method has led to in

  14. Slide 14: Substantial earnings growth

    04_ Substantial earnings growth Revenue Adjusted (2) EBITDA and adj. EBITDA margin EUR m EUR m and % CAGR (1) ~16% CAGR (1) ~37% 305-325 9-10% 9.1% 267.3 7.6% 225.7 233.0 28-32 6.4% 24.6 176.0 4.8% 17.6 14.3 8.6 2018 2019 2020 2021 2022e 2018 2019 2020 2021 2022e (1) Based on mid point of most recen

  15. Slide 15: Solid financial foundation

    05_ Solid financial foundation Equity and equity ratio Adj. EBITDA (lS) and leverage ratio (rS) EUR m and in % of total assets EUR m (lS) and in years (rS) 28 5 2021 98.2 37% 4.3 24.6 24 4 20 17.6 Target 16 2.6 3 < 3.5x 2020 80.3 41% 14.3 2.3 12 2 8 2019 67.0 33% 1 4 0 0 2019 2020 2021 Net debt/adj.

  16. Slide 16: Attractive dividend yield

    06_ Attractive dividend yield Dividend per share and dividend yield Investors should participate in our success EUR and % 4.0% 4.0% 4.0% 3.7% 3.3% Proposition to Annual General Meeting: 0.85 1.00 1.00 Euro per share for FY 2021 0.85 ▪ Increase of the base dividend by 13% 0.25 0.75 0.75 +13% ▪ A spec

  17. Slide 17: Above-average performance of the Blue Cap share

    06_ Above-average performance of the Blue Cap share Relative performance in peer comparison Share price performance 5 years SDAX Blue Cap 300% 250% 200% 150% 100% 50% 2018 2019 2020 2021 2022 ▪ Significant increase in value over the past few years ▪ Volatile movement, but… ▪ ... in the medium and lo

  18. Slide 18: Business Performance

    Business 02_ Performance

  19. Slide 19: Successful value creation and re-investments in new platforms

    Successful value creation and re-investments in new platforms Two major exits Three platform acquisitions Since 2021 Ownership Stake: 71 % Segment: Plastics Invest: 2014 - Buyer: Dover Corp. (USA) Exit: 2020 - Actual exit value achieved as % of NAV: ~177 % Segment: Medicals - Money Multiple: ~ 4.0x

  20. Slide 20: Transline: Digital business model with proprietary technology platform TBlue

    Transline: Digital business model with proprietary technology platform “TBlue” 1 2 TBlue offers its customers several Automatic quotation based on project interfaces for the automatic transfer of word count and translation memory word source files and orders count 2. Offer generation 3 7 1. Data 3.

  21. Slide 21: Transline: Fragmented market with strong growth and leading technology

    Transline: Fragmented market with strong growth and attractive company with leading technology A fragmented & growing market ... … and attractive investment highlights Global market volume Strategic focus on growing end markets, e.g., medtec, 2020 pharma, eCommerce, software Brand new technology for

  22. Slide 22: Financial Performance

    Financial 03_ Performance

  23. Slide 23: Good start into 2022

    Good start into 2022 Performance in first three months 2022 Robust financials due to diversification ▪ Sales increased mainly due to acquisitions and positive 82.7 development in plastics segment. Increase of adj. EBITDA Revenue (€ mn) +48% margin and adj. EBIT margin to 9.6% (PY: 8.1%) and 55.9 5.7

  24. Slide 24: Outlook

    Outlook Further strengthen the portfolio structure: Short term goals Inflation, supply chain issues and upcoming recession shift focus to operational performance ▪ Short term financial goal for 2022: Sales of EUR 305-325 mn and EBITDA (adj.) margin of 9-10%, Price management which is subject to Russ

  25. Slide 25: ESG Focus

    04_ ESG Focus

  26. Slide 26: Sustainability at Blue Cap: Our roadmap to anchor an ESG strategy

    Sustainability at Blue Cap: Our roadmap to anchor an ESG strategy at group level 2020 ✓ 2021 ✓ 2022 2023ff ▪ ESG project: kick off at Blue ▪ Dedicated ESG chapter ▪ Publication of first ESG ▪ Achievement of rateability ✓ Cap holding in annual report 2020 report (DNK basis (2)) ▪ Enhanced access to E

  27. Slide 27: Emissions of CO2 equivalents

    Federal Climate Change Act is the benchmark for our CO2 reduction strategy Reduction targets by sector 300 250 Emissions of CO2 equivalents 200 in million tonnes -36% 150 -58% 100 50 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042

  28. Slide 28: Thank you for your attention!

    Thank you for your attention!

  29. Slide 29: Appendix

    L | BLUE CAP

  30. Slide 30: Experienced Management Team with Complementary Skills

    Experienced Management Team with Complementary Skills Tobias Hoffmann-Becking Ulrich Blessing Matthias Kosch Chief Investment Officer Chief Operating Officer Chief Financial Officer Main Responsibilities Main Responsibilities Main Responsibilities ▪ M&A Business ▪ Portfolio Management ▪ Finance and

  31. Slide 31: Fiscal Year 2021 – Segments performance (1/2)

    Fiscal Year 2021 – Segments performance (1/2) Revenue by Segments Employees by Segments EUR mn including trainees Business Others 136 Services Plastics +35% 6% 101 3% Adhesives & 88 +4% Coatings 85 Adhesives & Coatings 32% Business 18 Services 0 59% Plastics 26 Others (1) -45% 47 2021 2020 (1) The s

  32. Slide 32: Fiscal Year 2021 – Segments performance (2/2)

    Fiscal Year 2021 – Segments performance (2/2) EBITDA adj. by Segments EBIT adj. by Segments EUR mn EUR mn 17,3 8,6 Plastics +82% Plastics +146% 9,5 3,5 Adhesives & 6,9 Adhesives & 3,3 -10% -27% Coatings 7,7 Coatings 4,5 Business 1,1 Business 0,9 Services 0,0 Services 0,0 -0,6 -1,6 Others(1) Others +

  33. Slide 33: 3M 2022 – Segments performance

    3M 2022 – Segments performance Revenue by segments Adjusted EBITDA by segments EUR m EUR m 42 5.5 Plastics +45% Plastics +57% 29 3.5 23 1.3 Adhesives & Coatings +10% Adhesives & Coatings -24% 21 1.7 17 1.5 Business Services Business Services 0 0.0 1 0.0 Others -87% Others 6 3M 2022 -0.5 3M 2022 3M 2

  34. Slide 34: Blue Cap on the stock market

    Blue Cap on the stock market Reference Data Positive Recommendations by Analysts ▪ ISIN/WKN: DE 00A0JM2M1 / A0JM2M ▪ Ticker: B7E, B7E.DE (Reuters), B7E:GR (Bloomberg) Analyst Date Rating Target Price ▪ Share Capital: 4,396,290.00 Euro / 4,396,290 pcs M.M. Warburg 04.05.2022 Buy 42.00 € ▪ Market Segm

  35. Slide 35: con-pearl GmbH

    con-pearl GmbH Headquarters Geismar, Thuringia Review 2021 Managing Directors Stefan Hoedt, ▪ con-pearl benefited from profitable high- Ulrich Blessing volume orders in logistic segment con-pearl manufactures lightweight plastic ▪ Weakness in automotive industry boards and products for the packaging

  36. Slide 36: H+E Group

    H+E Group Headquarters Ittlingen, Baden- Review 2021 Württemberg ▪ H+E was mainly influenced by chip shortage Managing Director Philipp Bentzinger, due to its high concentration on the automotive H+E is a plastics expert with core Mike Liphardt industry competence in the development and ▪ Shortage o

  37. Slide 37: Uniplast Knauer GmbH & Co. KG

    Uniplast Knauer GmbH & Co. KG Headquarters Dettingen an der Erms, Review 2021 Baden-Württemberg ▪ Uniplast was able to pass on increases in raw Managing Director Andreas Doster material prices to customers, which had a Uniplast develops and manufactures plastic positive effect on the margin achieved

  38. Slide 38: Planatol GmbH

    Planatol GmbH Headquarters Rohrdorf-Thansau, Review 2021 Bavaria ▪ Planatol was able to ensure its good supply Managing Director Hans Mühlhauser capability thanks to forward-looking measures Planatol is a global supplier of adhesives, to build up inventory levels adhesive applications and applicatio

  39. Slide 39: Neschen Coating GmbH

    Neschen Coating GmbH Headquarters Bückeburg, Lower Saxony Review 2021 Managing Directors Andreas Mertens, ▪ Further reduced order volume in the area of Nils Honscha products for trade fairs and other graphic Neschen Coating GmbH is a leading applications international company for self-adhesive Reven

  40. Slide 40: HY-LINE Group

    HY-LINE Group Headquarters Unterhaching, Bavaria Review 2021 Managing Directors Guido Brüning, ▪ HY-LINE was extremely impacted by the Martin Dibold, turbulences of the supply chains → component The HY-LINE Group has its origins in the shortages and extended delivery times Sven Holfert, distribution

  41. Slide 41: Transline Group

    Transline Group Headquarters Reutlingen, Baden- Equity Story and Outlook Württemberg ▪ Strategic focus on growing end markets, e.g., Managing Directors Dr Wolfgang Sturz, medtec, pharma, eCommerce, software Transline is one of the large German Katja Schabert ▪ Brand new technology forms the basis fo

  42. Slide 42: nokra Optische Prüftechnik und Automation GmbH

    nokra Optische Prüftechnik und Automation GmbH Headquarters Baesweiler, North Rhine- Review 2021 Westphalia ▪ Major project delays and postponements Managing Director Günter Lauven ▪ Sales development was very volatile nokra manufactures inline measurement ▪ But strong order intake was recorded in t

  43. Slide 43: Financial calendar and contact details

    Financial calendar and contact details Date Event Location 13 July 2022 m:access Conference Investment Companies Munich 27 July 2022 Preliminary Figures: H1 2022 + Earnings Call at 2 pm CEST Press release and conference call August 2022 Half Year Report 2022 Publication 17 October 2022 22. European

  44. Slide 44: Disclaimer

    Disclaimer By accessing this document, you acknowledge the restrictions on use set out Insofar as the information contained in this document is based on statements herein. The information contained in this document regarding Blue Cap AG made by third parties, we would like to point out that no warra

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