Blue Cap Ag · XETR:B7E
Blue Cap — Deutsches Eigenkapitalforum 2023
32 slides from Blue Cap's conference presentation, Nov 27, 2023
Slide 1: Investor Presentation: Strategy-Update Blue Cap 2026
Investor Presentation Strategy-Update “Blue Cap 2026” Dr. Henning von Kottwitz, CEO Deutsches Eigenkapitalforum 27 November 2023 Blue Cap AG
Slide 2: Our mission Blue Cap 2026
Our mission “Blue Cap 2026” Creating shareholder value through focus on core competences Regular transactions by focused Active transformation of deal sourcing and well-timed exits portfolio companies We create shareholder value through ▪ Increased NAV ’60 in 26’ and reduced discount of share price
Slide 3: Proven and unique business model
Proven and unique business model Listed Private Equity with its DNA in transformation BUY TRANSFORM SELL Where do we invest? How do we create value? When do we sell? Special situations Active portfolio management Stringent exit strategy based on People & Culture Solid core business ▪ Exit plan from
Slide 4: Acquisition targets are determined by Blue Cap competences for transformation
Acquisition targets are determined by Blue Cap competences for transformation Industrial SMEs with economically sustainable & scalable business models Outperforming Performing Core focus Blue Cap main Underperforming competences & capabilities Distressed In specific turnaround cases Insolvency Under
Slide 5: Broad range of tools and options for acquisition financing
Broad range of tools and options can be used for acquisition financing Cash Flow Capital Markets ▪ Resulting from successful exits ▪ Use stock exchange listing ▪ Based on transformation and operative performance ▪ Capital increase only if applicable ▪ Maintain high level of transparency Regular oper
Slide 6: Established Transformation Radar for value creation
TRANSFORM Established Transformation Radar for value creation ▪ Established structured processes and track record of value creation initiatives for our portfolio companies ▪ Core of our transformation competence and value enhancement expertise, especially required for turnaround cases ▪ People & Cul
Slide 7: Transformation levers effectively implemented in 2023 with positive effects on KPIs
Transformation levers effectively implemented in 2023 with positive effects on KPIs Balance Sheet Margin People & Culture ▪ Focus on cash flow ▪ Restructuring programs have ▪ Review of the 1st and 2nd ▪ Supported portfolio companies to reduced number of employees management level increase cash-effic
Slide 8: Case studies 2023: creating value in a downward cycle
Case studies 2023: creating value in a downward cycle Inheco: ‘Restart 2023’ Neschen: ‘Fitness Program’ ▪ Re-negotiate supplier contracts ▪ Divest loss making Filmolux France (asset deal) ▪ Make US-sales force more flexible ▪ Streamline HQ-structure ▪ Bring working-capital down and adjust OPEX ▪ Imp
Slide 9: Stringent exit strategy to continue track record with increased ROIC
Stringent exit strategy to continue track record with an overall increased ROIC Regular exits based on Our track record for value growth 2018 – 2023 2011 – 2022 2016 – 2021 ▪ Steady review of exit opportunities ▪ Exit plan from day one of acquisition Plastics Production Technology Metal Technology ▪
Slide 10: Diversified portfolio in Germany
Diversified portfolio in Germany Composition will change with increased M&A activities Diversified portfolio of Net Asset Value share by segment (*) ▪ 8 companies with headquarters in Germany ▪ More than 1,000 employees 7% 1% ▪ Four major segments represent the value of the group 17% 37% 36% Plastic
Slide 11: Two companies identified for near term divestment
Two companies identified for near term divestment Successful exit is at the core of our activities from day one Clear exit possibility Capture 2 7 Best-owner opportunistic exit Transform 3 5 4 1 6 Turnaround 8 Holding No. Company period Blue Cap AG _ Investor Presentation 11
Slide 12: Attractive dividend policy remains part of value generation
Attractive dividend policy remains part of value generation for our shareholders Dividend per share and dividend yield Components of dividend policy EUR and %, for respective fiscal year ▪ Base dividend as regular return 4.0% 4.0% 3.7% 3.3% 4.0% ▪ Resulting from operative performance (adjusted 1.00
Slide 13: '60 in 2026' Strong value creation potential
’60 in 2026‘ Strong value creation potential Group Net Asset Value Blue Cap growth path to ‘60 in 26’ Euro 60 55 ▪ 2023 ▪ 2023 did not develop as planned ▪ NAV 2023 negatively influenced by macro environment and multiple development 39 ▪ Strategic update initiated 37 ▪ 2024 <30 ▪ Year of restart: Im
Slide 14: Blue Cap Investment Highlights
Blue Cap Investment Highlights Unique opportunity to invest in German SME growth stories 01_ Proven business model > value creation through M&A and transformation 02_ Adapted investment focus > based on Blue Cap competences and capabilities 03_ Diversified portfolio of SMEs > participation in differ
Slide 15: Questions and Answers
5 BLUE CAP oa and Answers
Slide 16: Thank you for your attention!
Thank you for your attention!
Slide 17: Contact: Dr. Henning von Kottwitz
Contact Dr. Henning von Kottwitz CEO hvonkottwitz@blue-cap.de +49 89 288909-0 Blue Cap AG Ludwigstraße 11 office@blue-cap.de 80539 München www.blue-cap.de
Slide 18: Financial calendar and contact details
Financial calendar and contact details Date Event Location 27-29 November 2023 Deutsches Eigenkapitalforum Frankfurt / Main Lisa Marie Schraml Stay informed about Investor Relations & Corporate Communications the latest news and developments and lschraml@blue-cap.de receive our press +49 89 288909-2
Slide 19: Appendix
Appendix
Slide 20: Newly formed management team
Newly formed management team Dr. Henning von Kottwitz Henning Eschweiler Chief Executive Officer Chief Operating Officer Main Responsibilities Main Responsibilities ▪ M&A ▪ Portfolio Management ▪ Finance ▪ ESG ▪ Capital Market & Investor Relations ▪ IT Before: member of Blue Cap Supervisory Board si
Slide 21: Guidance 2023 and expectations for 2024 – year of restart
Guidance 2023 and expectations for 2024 – year of restart Guidance 2023 ▪ Development in Q3 and outlook for Q4 required a change of the guidance – pickup in Q3 not strong enough to close the gap Guidance cont. operations (Oct 2023) Revenue in EUR m 265 – 285 Adjusted EBITDA margin 7–8% Net leverage
Slide 22: Sustainability is part of value creation
Sustainability is part of value creation BUY TRANSFORM SELL Integration into investment Improved sustainability Integration into equity story process and due diligence ▪ e.g. by reducing carbon footprint ▪ ESG risk profile ▪ Minimization of ESG risk exposure or enhancing products with ▪ GHG emission
Slide 23: Plastics segment
Plastics segment Plastics ▪ Manufactures lightweight plastic boards from recycled plastic primarily for the logistic and automotive industry ▪ Value drivers: ▪ Growth: expansion US business Invest: 2019 / 100% ▪ Technology: process automatization Revenue*: € 67.3 mn ▪ ESG: circular economy business
Slide 24: Adhesives & Coatings segment
Adhesives & Coatings segment Adhesives & Coatings ▪ Niche supplier of adhesive products for different industries ▪ Value drivers: ▪ Growth: strengthen export and international business ▪ Technology: focus on innovations and cooperations Invest: 2009 / 100% ▪ People & Culture: strengthen management a
Slide 25: Business Services segment
Business Services segment Business Services ▪ Electronic product and systems distributor with a special focus on value-add through technical consulting and development expertise ▪ Value drivers: ▪ Growth + Margin: profitable growth in the areas of system solutions and design-in products ▪ People & C
Slide 26: Others and non-consolidated activity
Others and non-consolidated activity Others ▪ Manufactures inline measurement systems using optical lasers ▪ Value drivers: ▪ Growth: expansion based on product competence and scalability through customer growth Invest: 2014 / 90% ▪ Business Model: scaling niche competence through products Revenue:
Slide 27: Nine-month figures affected by challenging economic environment
Nine-month figures affected by challenging economic environment Revenue Adjusted EBITDA and adj. EBITDA margin EUR m EUR m and % CAGR 15% CAGR 15% 222.8 23.6 209.0 10.3% 8.8% 152.8 7.5% 7.6% 136.0 15.9 13.6 10.6 2020 (9M) 2021 (9M) 2022 (9M) 2023 (9M) 2020 (9M) 2021 (9M) 2022 (9M) 2023 (9M) ▪ Overal
Slide 28: Business Services continues to grow in Q3 2023 but cannot compensate for decline in other segments
Business Services continues to grow in Q3 2023 but cannot compensate for decline in other segments Revenue by segment Adjusted EBITDA by segment EUR m EUR m 71.8 7.9 Plastics -15% Plastics -43% 84.6 13.8 63.4 2.9 Adhesives & Coatings -13% Adhesives & Coatings -40% 72.9 4.9 71.4 6.2 Business Services
Slide 29: Net working capital further improved due to transformation measures
Net working capital further improved due to successfully initiated transformation measures Net working capital* Cash conversion cycle EUR m and in % of total output (LTM) days 30 Sept 2023 19% 52.7 30 Sept 2023 83 -7% -6% 31 Dec 2022 19% 56.3 31 Dec 2022 89 -16% -13% 30 Sept 2022 23% 67.0 30 Sept 20
Slide 30: Equity ratio remains on solid level, leverage ratio below maximum target
Equity ratio remains on solid level, leverage ratio clearly below maximum target Equity and equity ratio Net debt and leverage ratio EUR m and in % of total assets EUR m and in years Net debt/adj. EBITDA 2023 (Sept) 37% 96.5 3.0 2.8 2.6 2.3 2022 (Dec) 37% 100.0 72.4 70.1 59.5 58.7 2022 (Sept) 38% 10
Slide 31: 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: 4,486,283.00 Euro / 4,486,283 pcs M.M. Warburg 27.07.2023 Buy 38.00 € ▪ Market Segm
Slide 32: 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