Mutares Se & Co. Kgaa · XETR:MUX
Mutares Se & Co. Kgaa — Q1 2024 Earnings Presentation
24 slides from Mutares Se & Co. Kgaa's earnings presentation, May 7, 2024
Slide 1: Earnings Call Q1 2024
Earnings Call Q1 2024 May 7, 2024
Slide 2: Agenda
Company & Business Model Key Highlights of Q1 2024 Financials of Q1 2024 Outlook 2
Slide 3: Business marked by outstanding growth and momentum, sustainable value creation
Business marked by outstanding growth and momentum, sustainable value creation and turnaround success European Focus, with Four Diversified Helsinki Global Expansion Segments Stockholm London Amsterdam Warsaw Frankfurt Paris Vienna Munich (HQ) Milan Target Company Size Turnaround Madrid EUR 100-750
Slide 4: Strong financial performance, with direct performance contribution resulting in 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 5: ROIC target of 7-10x through successful turnarounds with 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 6: Well diversified portfolio with 33 companies across four segments
Well diversified portfolio with 33 companies across four segments, with annualized revenues of EUR ~6 billion Automotive & Engineering & Goods & Retail & Mobility Technology Services Food Early cyclical, Late cyclical, Non-cyclical, Cyclical, annual rev. EUR ~2.5 bn annual rev. EUR ~1.2 bn annual re
Slide 7: Agenda: Key Highlights of Q1 2024
Company & Business Model Key Highlights of Q1 2024 PMTC, MMTB, NEM, Palmia oder Frigo Financials of Q1 2024 Outlook 7
Slide 8: Key Q1 2024 highlights include expansion of international footprint and attractive dividend proposal
Key Q1 2024 highlights include expansion of the international footprint and attractive dividend proposal in line with the long-term dividend policy Buy-side activity with three acquisitions Sell-side with two exits 1) 3) Capital market milestones reached for both share and bond Geographical expansio
Slide 9: Mutares in India: 6 plants operating generating ~EUR 80 million
Mutares in India: Mutares has 6 plants operating in India generating ~EUR 80 million in revenues SFC India providing Sealing & Fluid solutions to Indian automotive OEMs 1 Sanand 4 Chennai • Start of operations: 2014 • Start of operations: 2017 • FTEs: 432 • FTEs: 405 • Size: 6,312 sqm • Size: 11,290
Slide 10: Mutares in India: Portfolio companies serve major customers across India
Mutares in India: Portfolio companies serve major customers across India North West East & South 10
Slide 11: Newly formed global player in automotive hinges & locking system market
Newly formed global player in the automotive hinges & locking system market with annual revenues of ~EUR 300 million, evolving potential since 1st acquisition in 2019 Global system supplier of automotive components Automotive HILO Group is a leading supplier of automotive hinges and locking systems,
Slide 12: Agenda: Financials of Q1 2024
Company & Business Model Key Highlights of Q1 2024 Financials of Q1 2024 Outlook 12
Slide 13: Net income of Mutares Holding benefiting from exit of Frigoscandia in Q1 2024
Net income of Mutares Holding benefiting in particular from exit of Frigoscandia in Q1 2024 and improvement in Adjusted EBITDA on a positive level for Mutares Key financials Q1 2024 Q1 2023 Δ FY 2024e EUR million Q1 2024 Q1 2023 (EUR million) Mutares Group Automotive & Mobility Revenues 605.9 448.7
Slide 14: Automotive & Mobility: Transformation programs face headwinds due to reduced call-offs
Automotive & Mobility: Transformation programs face headwinds due to reduced call-offs Revenue bridge (EUR million) EUR million Q1 2024 Q1 2023 Δ 605.9 Revenues 605.9 448.7 157.2 448.7 203.2 -46.0 Cost of material -356.0 -289.6 -66.4 Personnel expenses -169.1 -113.1 -56.0 Q1 2023 Organic M&A activit
Slide 15: Engineering & Technology: Challenging market in the constructions industry
Engineering & Technology: Challenging market in the constructions industry with delayed projects lead to lower profitability Revenue bridge (EUR million) EUR million Q1 2024 Q1 2023 Δ 263.1 -22.0 -16.8 224.3 Revenues 224.3 263.1 -38.8 Cost of material -150.0 -207.6 57.6 Personnel expenses -66.3 -56.
Slide 16: Goods & Services: Strong revenue growth due to recent acquisitions
Goods & Services1): Strong revenue growth due to recent acquisitions Revenue bridge (EUR million) EUR million Q1 2024 Q1 2023 Δ 286.4 83.8 Revenues 286.4 190.4 96.0 190.4 12.2 Cost of material -139.2 -115.4 -23.8 Personnel expenses -121.6 -57.7 -63.9 Q1 2023 Organic M&A activity Q1 2024 Other expens
Slide 17: Retail & Food: Newly formed segment with pleasant buy-side activity
Retail & Food1): Newly formed segment with pleasant buy-side activity Revenue bridge (EUR million) EUR million Q1 2024 Q1 2023 Δ 230.1 207.0 -28.0 51.1 Revenues 230.1 207.0 23.1 Cost of material -129.6 -118.5 -11.1 Personnel expenses -52.9 -48.7 -4.2 Q1 2023 Organic M&A activity Q1 2024 Other expens
Slide 18: 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) Q1 2024 Q1 2023 Q1 2024 Q1 2023 237.1 17.1 Harvesting 160.3 8.7 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Optimization 1,003.3 18.2 395.2 -1.0 Realignment Q1 2024 Q1 2023 Q1 2024 Q1 2023 476.4 183
Slide 19: Agenda: Outlook
Company & Business Model Key Highlights of Q1 2024 Financials of Q1 2024 Outlook 19
Slide 20: Investment summary
Investment summary Attractive access to the private equity market Successful track record & proven industry knowledge Attractive dividend strategy Focus on growth High transparency Strong share and bond performance Family and owner managed company Sustainability oriented 20
Slide 21: 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: Group (EUR bn) Holding (EUR m) min. 2 EUR/share per year 2023 4.7 103 Minimum dividend EUR 2.00 (prev. 1.00) 2024e 5.7 - 6.3 108 - 132 2025e ~7 125 - 150
Slide 22: 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. 22
Slide 23: Appendix: Group Financials
Appendix: Group Financials Condensed consolidated statement of profit and loss EUR million Q1 2024 Q1 2023 Revenues 1,346.1 1,108.0 +/- Change in inventories 8.9 42.3 Other income 106.8 139.5 Cost of material -774.6 -730.7 Personnel expenses -422.5 -286.4 Other expenses -198.6 -160.4 EBITDA 66.1 112
Slide 24: Appendix: Group Financials
Appendix: Group Financials Condensed consolidated balance sheet EUR million 31/03/2024 31/12/2023 EUR million 31/03/2024 31/12/2023 Intangible assets 244.5 245.3 Total equity 1,052.8 1,119.6 PP&E 1,160.2 1,166.7 Financial liabilities 852.7 736.4 Right of use assets 465.4 466.1 Provisions 319.6 342.3
Mutares SE & Co. KGaA — Q1 2024 Earnings Presentation on 6ix