Aurelius SE & Co. KGaA

Earnings Release • Nov 12, 2015

News Details

Corporate | 12 November 2015 07:30

AURELIUS: Third-quarter results confirm very positive full-year outlook

DGAP-News: AURELIUS AG / Key word(s): Quarter Results/Forecast

2015-11-12 / 07:30

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AURELIUS: Third-quarter results confirm very positive full-year outlook

– Consolidated revenues for the first nine months rise to EUR 1.44 billion, annualized consolidated revenues rise to nearly EUR 2.2 billion.

– Operating EBITDA rises to EUR 95.4 million (+23%).

– Net asset value reaches EUR 1,228.8 million.

– Intensive transaction activity continues.

– Forecast for anticipated record year 2015: Total EBITDA more than EUR 220 million, operating EBITDA to exceed EUR 120 million.

Munich, November 12, 2015 – The AURELIUS Group (ISIN DE000A0JK2A8) increased its total consolidated revenues by 22 percent to EUR 1,440.6 million in the first nine months of 2015 (Q1-Q3 2014: EUR 1,177.7 million). On an annualized basis, revenue growth was even more impressive, rising by 29 percent to EUR 2,165.2 million (Q1-Q3 2014: EUR 1,680.0 million).

Operating EBITDA on track for a record year

Despite the fact that no company sales were booked in the first nine months of 2015, the AURELIUS Group reported a very good total EBITDA of EUR 165.6 million (Q1-Q3 2014: EUR 208.5 million). The sales of hotel properties in Munich and Hanover that were announced in recent weeks will be completed as of December 31, 2015 and will have a significant positive influence on fourth-quarter results. Income from sales of equity investments above book value had contributed EUR 87.9 million to the EBITDA for the first nine months of 2014.

At EUR 95.4 million, the operating profit contribution of the AURELIUS portfolio companies was 23 percent higher than the corresponding year-ago figure (Q1-Q3 2014: EUR 77.5 million). The results of the subsidiaries SECOP, Berentzen Group, Getronics, and the Specialty Chemicals segment were especially good. For the full year 2015, AURELIUS expects an operating EBITDA on a record level of more than EUR 120 million.

AURELIUS successfully completed five acquisitions in the first nine months of 2015, including the European activities of the Tavex Group, a producer of high-quality denim fabrics, the Solid Board and Printed Cardboard Division of the Smurfit Kappa Group (today: Solidus Solutions), and the European Crafts Division of the British Coats Group (today: MEZ Group). Also in the United Kingdom, AURELIUS acquired Regain Polymers, the leading British recycler of hard plastic waste, as well as Transform Medical, the provider of cosmetic surgery procedures. In June, AURELIUS purchased the remaining 21.9 percent stake in the international IT services provider Getronics from the Dutch company Royal KPN, thereby raising its equity interest in the IT specialist to 100 percent.

Income from the reversal of negative goodwill from capital consolidation (“bargain purchase” income) on these transactions amounted to EUR 101.4 million in the first nine months of 2015 (Q1-Q3 2014: EUR 76.7 million). The restructuring of the newly acquired portfolio companies led to restructuring and non-recurring expenses of EUR 31.2 million (Q1-Q3 2014: EUR 33.6 million).

The total net asset value of the portfolio companies amounted to EUR 1,228.8 million, reflecting a 6.8 percent increase over the corresponding figure at year-end 2014 (December 31, 2014: EUR 1,150.6 million). Currently, the net asset values of four portfolio companies are still measured at the original purchase prices because they were acquired only in the last six months. Due to the successfully initiated operational restructuring, these values are likely to increase upon the next valuation at the end of 2015.

Positive outlook – intensive transaction activity continues

“We are very satisfied with the performance of our portfolio companies and our transaction pipeline. Both revenues and operating EBITDA are ahead of the original plan targets for the first nine months of 2015,” said AURELIUS CEO Dr. Dirk Markus. “And we continue to see strong activity in the market for company acquisitions and sales and expect to complete additional transactions in the remaining weeks of 2015. For the full year 2015, we expect to generate an operating EBITDA of more than EUR 120 million, a new record for the AURELIUS Group.”

Key Figures (in EUR millions)

	01/01 – 09/30/2015	01/01 – 09/30/2014	Change
Total consolidated revenues	1,440.6	1,177.7	22%
Consolidated revenues (annualized) ¹	2,165.2	1,680.0	29%
Total Group EBITDA	165.6	208.5	-22%
– of which negative goodwill from capital consolidation
(bargain purchase income)	101.4	76.7	32%
– of which restructuring and non-recurring expenses	31.2	33.6	-7%
– of which income from sales of equity investments above carrying amounts	-/-	87.9	-100%
Group operating EBITDA	95.4	77.5	23%
Cash flow from operating activities ¹	34.6	125.6	-72%
	09/30/2015	12/31/2014	Change
Cash and cash equivalents	252.6	328.4	-23%
Equity ratio ² (in %)	24.1	26.2	-8%

¹ From continuing operations.

² Including non-controlling interests.

Net Asset Values of AURELIUS Portfolio Companies (in EUR millions)

Group companies / units	09/30/2015	12/31/2014
SECOP	247.4	246.7
UK Chemicals	158.0	158.4
Getronics	126.7	128.2
GHOTEL Group	117.5	112.0
German Education Business	71.3	72.5
fidelis HR	58.1	57.4
Scholl Footwear	46.5	46.1
B+P Gerüstbau	38.0	33.5
Berentzen Group	39.7	23.5
LD Didactic	34.8	32.4
brightONE	32.4	34.5
Publicitas	31.8	25.9
ISOCHEM Group	24.7	24.6
HanseYachts	16.4	27.7
ECOPlastics	18.7	3.6
Solidus Solutions	15.5	n/a
Tavex Europe	2.0	n/a
Transform Medical	15.5	n/a
MEZ Group	0.0	n/a
Regain Polymers	0.6	n/a
Other (incl. net cash)	133.2	123.6
Total	1,228.8	1,150.6

ABOUT AURELIUS

AURELIUS has operated successfully in the international market for corporate acquisitions for many years and is one of Europe’s leading private equity firms. Working from offices in Munich, London, Stockholm, and Madrid, AURELIUS acquires companies and corporate spin-offs with development potential throughout Europe. Once acquired, these portfolio companies are restructured on the basis of a long-term strategy and further developed under the roof of AURELIUS, benefitting from the management experience and financial strength of the parent company.

Currently, the AURELIUS portfolio comprises 22 companies operating from locations in Europe, Asia, and the United States of America. They include many well-known and prestigious brands, as well as service providers and industrial enterprises. AURELIUS acquires companies on the basis of strict investment criteria, but is not bound by a particular sector focus. The shareof AURELIUS SE & Co. KGaA is listed in the m:access Section of the Munich Stock Exchange and is traded on all German stock exchanges under ISIN DE000A0JK2A8.

For additional information, please visit www.aureliusinvest.de .

CONTACT

Anke Banaschewski

Investor Relations & Corporate Communications

Phone +49 (89) 544799 – 0

Fax +49 (89) 544799 – 55

investor@aureliusinvest.de

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