Mutares Se & Co. Kgaa · XETR:MUX
Mutares Se & Co. Kgaa — Q3 2024 Earnings Presentation
26 slides from Mutares Se & Co. Kgaa's earnings presentation, Nov 7, 2024
Slide 1: Earnings Call Q3 2024
Earnings Call Q3 2024 November 7, 2024
Slide 2: Agenda
Agenda About us Key Highlights of Q3/Q4 2024 Financials of Q3 2024 Outlook 2
Slide 3: Business marked by outstanding growth and momentum, sustainable value creation and turnaround success
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) Milan Target Company Size Turnaround Madrid EUR 100-750 m Hero 3
Slide 4: ROIC target of 7-10x through successful turnarounds with our unique value creation lifecycle
ROIC target of 7-10x through successful turnarounds with our unique value creation lifecycle Mutares value creation lifecycle (avg. holding period 3-5 years) Acquisition Realignment Optimization Harvesting Calculated risk taken in loss- Cash financing provided by Investment in a successful Transform
Slide 5: Well diversified portfolio with 35 companies across four segments
Well diversified portfolio with as of today 35 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 6: Agenda: Key Highlights of Q3/Q4 2024
About us Key Highlights of Q3/Q4 2024 Financials of Q3 2024 Outlook 6
Slide 7: Key highlights Q3/Q4 2024 include continued high transaction activity
Key highlights Q3/Q4 2024 include continued high transaction activity Buy-side with ten acquisitions in Q3/Q4 Sell-side with two exits in Q3/Q4 Completed transactions Signed transactions 1) 1) Sverige 2) 3) Revenues Investments* Revenues Investments* ~ EUR 0.3bn ~ EUR 17m ~ EUR 1.3bn ~ EUR 16m 1) Ad
Slide 8: Capital Market Milestones
Capital Market Milestones *) Capital Market Milestones Successful listing of Successful placement of a new secured bond Placement with institutional investors in a private with a volume of EUR 135 million (2024/2029) placement at a price of EUR 14.00 per share in September 2024 With a future stake o
Slide 9: Agenda: Financials of Q3 2024
About us Key Highlights of Q3/Q4 2024 Financials of Q3 2024 Outlook 9
Slide 10: Net income of Mutares Holding benefiting from exit of Frigoscandia; Group Adjusted EBITDA affected by acquisitions
Net income of Mutares Holding benefiting from exit of Frigoscandia; Mutares Group Adjusted EBITDA mainly affected by new acquisitions EUR million Q1 2024 Q2 2024 Q3 2024 Q3 2024 Q3 2023 Δ 2024e Increase in consolidated YTD YTD revenues of Mutares Group by 14% to EUR >3.8bn Mutares Group Decrease
Slide 11: Mutares Holding - Income Statement
Mutares Holding - Income Statement Holding topline growth driven by larger portfolio, net income benefiting from exit of Frigoscandia Revenues comprise consulting and management fees charged to portfolio companies. Expenses for purchased services mainly include Income Statement, Mutares Holding (mEU
Slide 12: Strategic investments continuously made into portfolio to finance the turnarounds
Strategic investments continuously made into portfolio to finance the turnarounds using not only the purchasing price, but also post-closing equity, loans and consulting services Mutares Holding’s Investment into the Portfolio by category (EUR m, September 30, 2024) Receivables 163 25% 232 Equity 36
Slide 13: Investment in portfolio is balanced across segments of varying cyclicality
Investment in portfolio is balanced across segments of varying cyclicality to reduce risk; valuation is assessed internally and externally on regular basis Mutares Holding’s Investment into the Portfolio by Valuation of the exposure toward the portfolio in the Segment (EUR m, September 30, 2024) Hol
Slide 14: Segment Financials: Overview
Segment Financials: Overview Q3 influenced by summer months and challenging market conditions Q3 2024 Q3 2023 EUR million Q1 2024 Q2 2024 Q3 2024 Δ Increase in revenues in all YTD YTD segments of Mutares Group due to strong M&A activity Automotive & Mobility Revenues* 605.9 533.8 540.0 1,679.7 1,3
Slide 15: Automotive & Mobility: Difficult market environment affects revenues and profitability
Automotive & Mobility: Difficult market environment affects revenues and profitability, focus on footprint optimization Q3 2024 Q3 2023 Revenue bridge (EUR million) EUR million Q1 2024 Q2 2024 Q3 2024 Δ YTD YTD 1,679.7 Revenues 605.9 533.8 540.0 1,679.7 1,357.1 322.6 1,357.1 525.5 -202.9 Cost of mat
Slide 16: Engineering & Technology: Substantial positive progress in turnaround across multiple portfolio companies
Engineering & Technology: Substantial positive progress in turnaround across multiple portfolio companies with still negative contribution from new acquisitions Q3 2024 Q3 2023 Revenue bridge (EUR million) EUR million Q1 2024 Q2 2024 Q3 2024 Δ YTD YTD 768.0 714.7 -29.2 82.4 Revenues 224.3 235.7 308.
Slide 17: Goods & Services: Adjusted EBITDA remains positive despite exit of Frigoscandia
Goods & Services: Adjusted EBITDA remains positive despite exit of highly profitable Frigoscandia Q3 2024 Q3 2023 Revenue bridge (EUR million) EUR million Q1 2024 Q2 2024 Q3 2024 Δ 785.8 YTD YTD 713.0 40.9 31.9 Revenues 286.4 265.6 233.8 785.8 713.0 72.8 Cost of material -139.2 -124.1 -115.5 -378.8
Slide 18: Retail & Food: Weak consumer climate affecting revenue development and profitability
Retail & Food: Weak consumer climate affecting revenue development and profitability Q3 2024 Q3 2023 Revenue bridge (EUR million) EUR million Q1 2024 Q2 2024 Q3 2024 Δ YTD YTD 617.7 661.2 Revenues 230.1 229.4 201.7 661.2 617.7 43.5 -98.7 142.1 Cost of material -129.6 -128.0 -106.1 -363.7 -333.0 -30.
Slide 19: Current portfolio allocation well diversified across value creation life cycle
Current portfolio allocation well diversified across value creation life cycle Revenues (EURm)* Adj. EBITDA (EURm)* 492.6 27.3 Harvesting 8.7 8.8 9.8 1) 160.3 167.1 165.2 Q1 Q2 Q3 Q3 2024 Q1 Q2 Q3 Q3 2024 2024 2024 2024 YTD 2024 2024 2024 YTD Optimization 2,768.0 18.2 4.1 3) 1,003.3 -0.8 904.2 860.5
Slide 20: Agenda: Outlook
About us Key Highlights of Q3/Q4 2024 Financials of Q3 2024 Outlook 20
Slide 21: Investment summary
Investment summary Focus on growth Successful track record & proven industry knowledge Strong share and bond performance Attractive dividend strategy High transparency Sustainability oriented Family and owner managed company Attractive access to the private equity market 21
Slide 22: Sell-side activities to increase in FY 2025 as holding periods reach maturity
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 23: 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 Minimum dividend EUR 2.00 ~7 125 - 150 2025e (
Slide 24: Q&A
Q&A Thank you for your questions. If you want to ask a question, please register in the contact section in the webcast to receive the telephone dial ins. Please mute yourself on the webcast. 24
Slide 25: Appendix: Group Financials - Profit and Loss
Appendix: Group Financials Condensed consolidated statement of profit and loss EUR million Q3 2024 YTD Q3 2023 YTD Revenues 3,892.8 3,402.5 +/- Change in inventories -6.0 36.4 Other income 396.2 599.4 Cost of material -2,261.0 -2,081.0 Personnel expenses -1,265.0 -935.9 Other expenses -586.8 -492.7
Slide 26: Appendix: Group Financials - Balance Sheet
Appendix: Group Financials Condensed consolidated balance sheet EUR million 30/09/2024 31/12/2023 EUR million 30/09/2024 31/12/2023 Intangible assets 366.0 245.3 Total equity 897.0 1,119.6 PP&E 1,254.3 1,166.7 Financial liabilities 1,076.1 736.4 Right of use assets 482.9 466.1 Provisions 328.1 342.3
Mutares SE & Co. KGaA — Q3 2024 Earnings Presentation on 6ix