Mutares Se & Co. Kgaa · XETR:MUX
Mutares Se & Co. Kgaa — Investor Day (October 2024)
89 slides from Mutares Se & Co. Kgaa's investor day presentation, Oct 24, 2024
Slide 1: Global Private Equity Special Situations Investor
Global Private Equity Special Situations Investor Capital Markets Day | Frankfurt/Main | October 24, 2024
Slide 2: Content
Content Introduction Company & Business Model Coffee Break Turnaround Approach Portfolio Companies: Palmia, keeeper Group, Steyr Motors Outlook & Guidance
Slide 3: The buffalos of European Private Equity
The buffalos of European Private Equity
Slide 4: The buffalos of European Private Equity
The buffalos of European Private Equity
Slide 5: Latest Updates from Mutares: This Week's Overview
Latest Updates from Mutares: This Week’s Overview Buy-Side Sell-Side Acquisition of Partial exit of and Add-on Investment to strengthen the SFC Group
Slide 6: Content
Content Introduction Company & Business Model Coffee Break Turnaround Approach Portfolio Companies: Palmia, keeeper Group, Steyr Motors Outlook & Guidance
Slide 7: Purpose: who we are – FIRST IN MIND, FIRST IN CHOICE
Purpose: who we are – FIRST IN MIND, FIRST IN CHOICE • Global private equity investor • Acquisition of companies and corporate carve outs in turnaround situations with HQ in Focus on four segments: Europe and significant, tangible potential for operational improvement • Focus on companies with high
Slide 8: Highly experienced and committed management with proven track record
Highly experienced and committed management with proven track record of ~ 50 years experience Management interests fully aligned with external shareholders (36% ownership) Shareholder structure Management Board of Mutares Management SE as of July 1, 2024 underlines management commitment CEO and Mana
Slide 9: Business marked by outstanding growth and momentum
Business marked by outstanding growth and momentum, sustainable value creation and turnaround success Global footprint Four Diversified Helsinki Segments Stockholm London Amsterdam Warsaw Frankfurt Paris Vienna Munich (HQ) Bad Wiessee Milan Target Company Size Turnaround Madrid EUR 100-750 m Hero 9
Slide 10: M&A – strong reputation as turnaround investor ensures access to attractive deals
M&A – strong reputation as turnaround investor ensures access to most attractive deals Reputable exit solution for sellers underperforming assets, explaining sellers willingness to provide a cash dowry Local M&A approach secures pipeline Mutares benefits from a strong reputation as trusted buyer and
Slide 11: Well diversified portfolio with 34 companies across four segments
Well diversified portfolio with as of today 34 companies across four segments, with annualized revenues > EUR 7bn Automotive & Engineering & Goods & Retail & Mobility Technology Services Food Early cyclical, Late cyclical, Non-cyclical, Cyclical, annual rev. EUR ~2.7 bn annual rev. EUR ~2.6 bn annua
Slide 12: Strong financial performance, with strong shareholder returns
Strong financial performance, with direct performance contribution resulting in strong shareholder returns Both Mutares Group revenue and Holding net income with Strong financial performance continues to translate into sizeable strong historical growth that is expected to continue and sustained shar
Slide 13: Past investments into growth will generate positive cashflows on Holding Level
Past investments into growth will generate positive cashflows on Holding Level in upcoming years: Excess cash generation of EUR >155m expected for FY 2025 and FY 2026 (Gross) exit proceeds of EUR >200m p.a. expected Portfolio Income (Revenues and Dividends) to be cashed-in in the amount of approx. E
Slide 14: Expected cashflows for FY 2025 and FY 2026 in the value creation lifecycle
Past investments into growth will generate positive cashflows on Holding Level in upcoming years: Expected cashflows for FY 2025 and FY 2026 in the value creation lifecycle Average of 16 acquisitions p.a. (as in FY 2023) Acquisition Realignment Optimization Harvesting Investments of approx. Portfoli
Slide 15: Expected excess cash generation available for increasing dividend
Expected excess cash generation for FY 2025 and FY 2026 available for… 1 Increasing dividend payments (minimum dividend of EUR 2.00 per share) 2 Interest payments 3 Potential bond repayment
Slide 16: Content
Content Introduction Company & Business Model Coffee Break Turnaround Approach Portfolio Companies: keeeper Group, Palmia Outlook & Guidance
Slide 17: Mutares – Champion in driving value creation through operations
Mutares – Champion in driving value creation through operations Portfolio, Operations and Consulting key numbers Portfolio Operations Consulting 25 Operations directors / CROs Value Creation Contribution Mutares Value Creation Model 30 – 50%: Operational Value Creation Repositioning portfolio compan
Slide 18: Extensive project knowhow in cross-segment practices
Extensive project knowhow in cross-segment practices are backbone of value creation Nine practices are being deployed based on turnaround needs M&A Team (West, South, North, East) Operations FTE Diverse team with industry and consulting expertise Chief Restructuring Officer Automotive Engineering Go
Slide 19: Our value creation life cycle determines the levers
Our value creation life cycle determines the levers, activities and responsibilities Intensive care through CROs primarily focus on two cycles Acquisition Realignment Optimization Harvesting Divesture • ‘Lost cause’ for old • Unstable & • Stable & unprofitable • Stable & profitable • Attractive to b
Slide 20: Realignment | Set the transformation pace
Realignment | Set the transformation pace through strategic planning, fixed costs restructuring and strong focus on cash Phase overview Key building-blocks Symptoms: • Unstable (cash bleeding, non-structured) Set-up transformation and empower leadership team • Unprofitable (EBITDA ca. 10% of revenue
Slide 21: Realignment | Business plan methodology is mandatory
Realignment | Business plan methodology is mandatory across all Mutares projects …to get Transformation 2nd business plan synchronized to match Actuals adjusted ‘run-rate’: Run-rate plus initiatives built and ordinary budget process; in theory, Y1 BP and using Finance company initiatives becomes 1st
Slide 22: Optimization | Deliver breakeven through continuous optimisation programme
Optimization | Deliver breakeven through continuous optimisation programme Phase overview Key building-blocks Symptoms: • Stable (bleeding stop, some structure) Implement continuous improvement culture • Unprofitable (journey to profitability engaged) • Clear understanding of underperformance and st
Slide 23: Operations will be further strengthened to capture full value creation
Operations will be further strengthened to capture full value creation potential in an accelerated way 1 CRO engagement 2 Financial Control 3 Operational Audits 4 Operating Partner Drive turnaround and Ensure continuous financial Ensure operational Best Ensure harmonisation and implement sustainable
Slide 24: Key drivers for successful transformation
Key drivers for successful transformation Early identification of root causes, sustained action, and gradual phase-out of the project are essential 1 Priority deal parameters: Dowry or rather low purchase price, carve-out from group with good balance sheet, weak P&L • 2 CRO engagement between signin
Slide 25: Insights into the successful transformation journey of two portfolio companies
Insights into the successful transformation journey of two portfolio companies at different stages From deep red figures to black in one year Becoming a love brand Presented by Presented by Mika Martola (CEO Palmia) Martin Bieri (CEO keeeper Group)
Slide 26: Content
Content Introduction Company & Business Model Coffee Break Turnaround Approach Portfolio Companies: Palmia, keeeper Group, Steyr Motors Outlook & Guidance
Slide 27: palmia
palmia
Slide 28: Palmia - the future service champion in Finland
Palmia - the future service champion in Finland From deep red figures to black in less than two years Capital Markets Day – Frankfurt 2024
Slide 29: Successful turnaround growing topline by 15% and improving adj. EBITDA
Successful turnaround growing topline by 15% and improving adj. EBITDA by 8m€ in less than two years 190 181,9 5,4% 5,5 Key success factors: 180 5,0 4,5 1. Rapid understanding of the business logics 170 8 4,0 160 3,6% 15% 3,5 2. Fast execution of initiatives with parallel focus on 150 3,0 topline an
Slide 30: Previous owner of Palmia was the City of Helsinki
Previous owner of Palmia was the City of Helsinki operating the company without cost / profit focus Comments: 124 122,8 0,0 122 121,0 1. -0,2 City owned company operated as public company 120 without profit focus and cash management 118 -0,4 116 114 -0,7% 2. -0,6 Worsening financial performance sinc
Slide 31: In-depth steering of turnaround plan enabling 8m€ adj. EBITDA improvement
In-depth steering of turnaround plan enabling a 8m€ adj. EBITDA improvement in two years Adj. EBITDA bridge 2022 to 2024 m€ Key initiatives: SALES: New sales organisation +7,9 Updated tender strategy 5,1 Extension to private company business Focus on key service offerings 3,5 OPERATIONS: R
Slide 32: Fast execution of restructuring initiatives
Fast execution of restructuring initiatives Rapid understanding of the business logic and engagement across the organisation Detailed plan for over 700 different cost saving and growth activities In addition, two key things: A. Mutares turnaround team matching the business need / environment B. Muta
Slide 33: Changing the company culture to a profit-oriented mindset
Changing the company culture to a profit-oriented mindset Key elements: Making everyone in the company aware of the result and its importance “Keeping the eyes on the ball” - result Sales unit focusing on growth, business units on margin Strengthening the Business controller function to supp
Slide 34: Growing topline by 15% and improving adj. EBITDA by 8m€
Growing topline by 15% and improving adj. EBITDA by 8m€ in less than two years 190 181,9 5,4% 5,5 Four key levers for Palmia’s success 180 5,0 4,5 170 8 4,0 1. SPEED: Rapid understanding of the business 160 3,6% 15% 3,5 logics and fast execution with parallel focus on 150 3,0 topline and cost initia
Slide 35: Kiitos Thank you for your attention
Kiitos Thank you for your attention.
Slide 36: keeeper
keeeper
Slide 37: keeeper
keeeper
Slide 38: home kitchen storage kids
home kitchen storage kids
Slide 39: keeeper facts
95% of items are 15.000 t 1.2 “Made in EU” in own Material consumption million pieces per year Folding boxes “ben” production facility sold per year 35 million sold pieces per year 55 c o u n t rie s Customers in keeeper facts 65 years 20 % 700 of experience in of the material Catalogue items inject
Slide 40: kecological
kecological
Slide 41: keefficient
keefficient
Slide 42: keeessential
keeessentiadl
Slide 43: keeepenjoy living
keeepenjoy living
Slide 44: Restructuring – the last years
Re s t ru c t u rin g – t h e la s t ye a rs Initial Challenge: Operating under an unsuccessful strategy within an industrial holding. Ke y Ac t io n s Ta ke n : Production & Logistics Relocation: Shifted operations from Germany to Poland for enhanced efficiency. Social Plan Implementation: Ensured
Slide 45: Restructuring – the last years
Re s t ru c t u rin g – t h e la s t ye a rs Resilience in adverse circumstances: Somewhat longer restructuring due to COVID-19, raw material shortages and geopolitical tensions were overcome. Successful Turnaround Achieved: Overcame challenges to emerge stronger and more competitive in the market.
Slide 46: The Factory
Th e Fa c t o ry Bydgoszcz plant provides the staff and infrastructure Area for to produce according to automotive standards in a low-cost country with expansion potential. additional 5 machines in existing hall Mould Shop 18 truck 24 PP storage terminals silos Warehouse 2 3,900m Warehouse & Shopflo
Slide 47: The Factory
Th e Fa c t o ry Bydgoszcz plant provides the staff and infrastructure to produce according to automotive standards in a low-cost country with expansion potential. Expansion Area 36,000m 2 12
Slide 48: Internationalization
In t e rn a t io n a liza t io n Expanding our global footprint to tap into new markets and diversify our revenue streams.
Slide 49: Digitalization
IDig it a liza t io n Embracing cutting-edge technologies to streamline our operations and improve customer engagement.
Slide 50: Emotionalization
IDEm o t io n a liza t io n Enhancing our brand’s emotional appeal to create deeper connections with our customers.
Slide 51: Agility
IDEAg ilit y Emphasizing the importance of being agile in adapting to global markets and technological changes.
Slide 52: Longevity
IDEALo n g e vit y Accentuate the aim of ensuring the long-term survival and success of the company.
Slide 53: IDEAL
IDEAL
Slide 54: The IDEAL Strategy
The IDEAL Strategy: Designed to simplify our focus and make it easy to remember. 19
Slide 55: Key Initiatives 2024 | B2B
Key Initiatives 2024 | B2B 14 20
Slide 56: Key Initiatives 2024 | B2B
Key Initiatives 2024 | B2B 14 20
Slide 57: Product Innovations
P ro d u c t In n o va t io n s Developing new and innovative products to meet evolving market demands and stay ahead of the competition. 21
Slide 58: Product Innovations
P ro d u c t In n o va t io n s Developing new and innovative products to meet evolving market demands and stay ahead of the competition. 22
Slide 59: Product Innovations
P ro d u c t In n o va t io n s Developing new and innovative products to meet evolving market demands and stay ahead of the competition. 23
Slide 60: Key Initiatives 2024 | B2B
Key Initiatives 2024 | B2B 14 24
Slide 61: Brand Refresh
24 Brand Refresh Abrand refresh is necessary for us to revitalize our image and resonate more effectively with our target audience, aligning with their evolving needs and preferences. It will ensure that we maintain a competitive edge in the market, fostering renewed interest and loyalty among our c
Slide 62: Let's make a first step towards a love brand
Le t ’s m a ke a f irs t s t e p t o w a rd s a lo ve b ra n d . 25
Slide 63: keep what you love.
keep what you Qove.
Slide 64: Catalogue
Catalogue The new layout. The structure of the catalogue differs enormously from the previous structure of the keeeper product catalogue. Based on the new claim, the new colour scheme and the new imagery, the catalogue also aims to emotionalize the brand. 27
Slide 65: IDEAL Strategy keeeper
IDEAL | Strategy | Strategy keeeper
Slide 66: oovema> [| ARAUMAIRL mmc [| IRUNEAILR!L resco [| INIPERLR
oovema> [| ARAUMAIRL mmc [| IRUNEAILR!L resco [| INIPERLR ; y — 29 a Y, fy keeeper
Slide 67: Web
Web Ne w w e b s it e a p p e a ra n c e . A well-designed corporate website is a strategic communication tool that not only serves as a digital business card, but also makes a significant contribution to increasing sales and developing new business strategies. It has to be user-friendly, targeted a
Slide 68: Key Initiatives 2024 | B2B
Key Initiatives 2024 | B2B 14 33
Slide 69: Innovative Showroom
Innovative Showroom Innovative Showroom in Bydgoszcz with Factory Tour 2.0 Our innovative showroom in Bydgoszcz, coupled with an enhanced factory tour 2.0, will serve as a showcase of our commitment to innovation and quality. This initiative is designed to offer an immersive experience to our client
Slide 70: Key Initiatives 2024 | B2B
Key Initiatives 2024 | B2B 14 34
Slide 71: Worldwide distribution
© © co) Worldwide distribution As one of the leading suppliers of durable and functional quality products in the EU, we improve the lives of our customers in 55 countries around the world. wi keeepsr
Slide 72: Internationalization
In t e rn a t io n a liza t io n Unlocking new horizons: Expanding into North America and the Pacific, delivering our solutions to the USA, Canada, Mexico, Australia, and New Zealand. 35
Slide 73: Key Initiatives 2025 | B2B & B2C
Key Initiatives 2025 | B2B & B2C 07 10 36
Slide 74: Group Net Sales
+26% G ro u p Ne t Sa le s Strong growth. +21% 2020 2024 2027 2020 2024 2027 65 .9m € 79.5 m € 10 0 m € EBITDA EBITDA EBITDA -6% 9.7% 12% 37
Slide 75: Copyright 2024 © keeeper GmbH
Copyright 2024 © keeeper GmbH. All rights reserved.
Slide 76: STEYRMOTORS
STEYRMOTORS
Slide 77: Steyr Motors plans listing on the Frankfurt Stock Exchange
Steyr Motors plans listing on the Frankfurt Stock Exchange
Slide 78: Steyr Motors October 2024
STEYRMOT ors©® INNOVATION WITH LIGHTNESS October 2024
Slide 79: Introducing Steyr Motors
INTRODUCING The global leader for customized engines in special military and civil situations
Slide 80: Steyr Motors – Key Highlights
STEYR MOTORS – KEY HIGHLIGHTS Maintenance, Repair & Overhaul (MRO) & Spare Parts 30% € Engines & Licence Manufacturing % 70% Revenue Adj. EBIT1 Adj. EBIT1 Margin Revenue by Area €41–45m €9-11m 20-25% 9MO 2024 2024E 2024E 2024E Americas ROW 6% 11% Civil 43% Military Asia 57% 20% Europe 63% Revenue CA
Slide 81: Investment Highlights
INVESTMENT HIGHLIGHTS Leading market player for mission critical customized engines in special situations1 International established customer base Strong revenue growth with large total backlog of orders2 providing visibility on future earnings Highly profitable in a high-growth market Clear future
Slide 82: Catering for a diverse set of applications and product lines
CATERING FOR A DIVERSE SET OF APPLICATIONS AND PRODUCT LINES M14 | M16 M12 | M16 SE4 | SE6 Military vehicles Aggregates Marine Military vehicles from 3.5t to 10t MBT Locomotives Rib Boats Battle Boats Work BoatsRescue Boats Primary Power for Special vehicles Auxiliary Power Unit (APU) Primary Propul
Slide 83: Diverse and international customers and end users
DIVERSE AND INTERNATIONAL CUSTOMERS AND END USERS Military vehicle and boat manufacturers Civil manufacturers Revenue by Type Civil 43% Military 57% Various boat builders - indirect sales with 13 partners Revenue by Customer Other Top 1 32% 30% Dutch Army Navy Finnish Army Swedish Army Swiss Army Se
Slide 84: Turnaround driving sustainable growth
TURNAROUND DRIVING SUSTAINABLE GROWTH STAND STILL GROWTH 2024+ until 2022 2022 -2023 Steyr Motors experiences sustainable growth with substantial Thales invited Mutares in an exclusive process opportunities in the pipeline Chinese management due to the turnaround reputation of Mutares unable of
Slide 85: Content
Content Introduction Company & Business Model Coffee Break Turnaround Approach Portfolio Companies: Palmia, keeeper Group, Steyr Motors Outlook & Guidance
Slide 86: Strong development on both the Buy- and Sell-Side
Strong development on both the Buy- and Sell-Side Buy-Side History 2021 - 2024 Sell-Side History 2021 - 2024 53 28 Acquisitions Exits 9 portfolios with EUR EUR > EUR 10m of EUR combined 2.1 bn 389m 6.1 bn equity injection and/or positive Gross Exit Revenues 1) purchase price Revenues 2) proceeds 1)
Slide 87: Sell-side activities to increase in FY 2025
Sell-side activities to increase in FY 2025 as holding periods reach maturity, with portfolio companies to be exited across all segments with exit proceeds of EUR >200m targeted Automotive & Mobility (EUR m) Goods & Services (EUR m) A&M company #1 ~350 G&S company #1 ~100 G&S company #2 ~250 Total a
Slide 88: We delivered what we promise and will continue the growth path towards 2028
We delivered what we promise and will continue the growth path towards 2028 Revenues for Mutares Net Income for Mutares Updated dividend strategy: Global expansion & opening Group (EUR bn) Holding (EUR m) min. 2 EUR/share per year of new Mutares offices 2023 4.7 103 Minimum dividend EUR 2.00 (prev.
Slide 89: Disclaimer
This document has been prepared by Mutares SE & Co. KGaA solely for the use in this presentation. The information contained in this document has not been independently verified. No representation or warranty - whether expressed or implied – is made as to, and no reliance should be placed on, the fai