Mutares SE & Co. KGaA

Earnings Release • Sep 15, 2016

News Details

Corporate | 15 September 2016 09:30

mutares AG: mutares positions itself for future development

DGAP-News: mutares AG / Key word(s): Half Year Results

2016-09-15 / 09:30

The issuer is solely responsible for the content of this announcement.

---

mutares positions itself for future development

The mutares Group (ISIN: DE000A0SMSH2) closed the first half of 2016 with stable revenues and a reduced profitability due to one-off effects. A strong focus was put on establishing the required organization structure as a basis for further growth of the group. The new segmentation of the portfolio sharpens mutares’ profile and the investment focus.

Due to robust organic growth group revenues in the first half of 2016 have been stable at EUR 310.6m (previous year: EUR 311.6m) despite of significantchanges in the portfolio. Particularly STS Acoutistics and GeesinkNorba contributed to this performance. Given the full transaction pipeline mutares expects besides the recent acquisition of Sonoco Paper France, now Cenpa, several further big transactions until the end of the year. The group’s operative result (EBITDA) accounts for EUR 4.0m (previous year: EUR 12.9m) due to negative one-off effects. mutares expects a significant catch-up effect in the second half of the year and is convinced to achieve its mid-term objectives. Further details are to be found in today’s published half-year report.

Preparation for further growth

In the first half of 2016, mutares significantly invested in the development of the team and the infrastructure. Following an extensive planning period, mutares moved into a new and much bigger office in Munich. Seven professionals joined the team and will complement its skill set with their expertise, experience, and network. Also in Paris mutares moved into a new office that provides the space for further growth and for the operational management of the French portfolio. mutares considerably increased its recruiting activities and expects to expand the team until the end of the year.

Sharpened investment focus

The current portfolio has been segmented into five industry sectors. Thus the profile and the core competencies of mutares as operational, sustainable investor get distinctly emphasized. The visibility and the network of mutares in the sectors will profit from the improved focus. Thereby mutares expects better growth opportunities. The segment Automotive & Industrials is mutares’ home turf and represents today about 40 percent of the group’s NAV. In the automotive supply industry mutares established an excellent reputation as an expert and reliable business partner. mutares intends to develop this sector by new platform investments and bigger add-on acquisitions.

Segment	Share in the NAV
Automotive & Industrial	40%
Construction & Infrastructure	24%
Consumer Goods & Logistics	13%
Engineering & Technology	12%
Wood & Paper	11%

The segment Wood & Paper shows how successful a cluster can be build. In all segments mutares expects high market dynamics and the potential for attractive acquisitions and exits.

NAV of the mutares Group

Portfolio companies	NAV as of June 30, 2016 (in mEUR)
EUPEC / BSL	74.1
STS Acoustics	54.8
Elastomer Solutions	41.6
A+F	35.6
GeesinkNorba	26.8
Artmadis	24.3
Zanders	15.8
Norsilk	14.1
Others (incl. net cash)	23.8
Total	310.9

The valuation has been done by applying a discounted cash-flow model and taking into account the forecasts of the current year and the budgets for the coming two years of each portfolio company. The annual growth rates following the detailed planning period have been set for each company specifically between 0.5 and 1.5 percent according to the relevant industry. The discount rates are the WACCs (weighted average cost of capital) of each of the portfolio companies. The WACCs are industry and country specific and lie between 4.9 and 10.0 percent.

Company profile of mutares AG

mutares AG, Munich (www.mutares.de), acquires companies, that are being sold in the course of a repositioning process at their owners and that show a clear operational improvement potential. Getting engaged with its own teams, mutares actively supports its portfolio companies to achieve a clear value increase. The focus of the operational work is to ensure sustainable, long-term growth. The shares of mutares AG are traded in the Open Market of the Frankfurt Stock Exchange (Entry Standard) under the symbol MUX (ISIN: DE000A0SMSH2).

For further information, please contact:

mutares AG

Soh-Pih Mariette Nikolai

Investor Relations & Corporate Communications

Tel. +49 89 9292776-0

Fax +49 89 9292776-22

ir@mutares.de

www.mutares.de

---

2016-09-15 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Archive at www.dgap.de

---

Language:	English
Company:	mutares AG
	Arnulfstr.19
	80335 Munich
	Germany
Phone:	+49 (0)89-9292 776-0
Fax:	+49 (0)89-9292 776-22
E-mail:	ir@mutares.de
Internet:	www.mutares.de
ISIN:	DE000A0SMSH2
WKN:	A0SMSH
Listed:	Regulated Unofficial Market in Berlin, Stuttgart, Tradegate Exchange; Open Market (Entry Standard) in Frankfurt

End of News	DGAP News Service