DGAP-News: Mutares AG: First quarter with revenue growth according to plan

- Group revenues of approx. EUR 229 million
- Group EBITDA Q1 2018 of approx. EUR (3) million seasonally affected
- Quarterly figures based on IFRS for the first time
 

The Mutares Group (ISIN: DE000A0SMSH2) generated total revenues of EUR 228.9 million and seasonally affected operating earnings (EBITDA) of EUR (3.4) million in the first quarter of 2018. The first quarter was dominated by the usual seasonal effect on the service business of the Engineering & Technology segment and preparations for the successful IPO of STS Group AG in the Prime Standard of the Frankfurt Stock Exchange at the beginning of June 2018.

The Mutares Group generated revenues of EUR 228.9 million, which confirms the expectations of the Management Board and reflects the further development of the portfolio through organic growth. The pleasing revenue growth in the first quarter was characterized by the continued significant contribution of the Automotive and Engineering & Technology segments. In particular, organic growth in Elastomer Solutions and the integrated acquisitions in the STS Group helped the currently largest segment of Mutares to further grow revenues.

Operating earnings at EUR (3.4) million were positively affected by the Automotive segment on one hand, and on the other hand, impacted by a seasonally weak first quarter and the restructuring of Donges SteelTec in the Engineering & Technology segment. The latter segment is expected to contribute to a positive Group operating result in the second quarter due to its service business, which usually picks up in the warmer seasons. Compared to last years' first quarter, the operating earnings for the first quarter 2018 do not include earnings from bargain purchases and exits.

Cash and cash equivalents amounted to EUR 103.2 million as of March 31, 2018. On the investment side, the Management Board plans, as of today, at least three further transactions in the 2018 financial year.

Based on developments and market conditions in the first quarter, the net asset values for the portfolio segments were updated as of 31 March 2018 and, as announced, a conservative approach was adopted. NAV is calculated as intrinsic value which is defined as the sum of the market values of the segments (assets less market value of liabilities plus net funds in Mutares AG without intermediate holding companies). For the calculation of the NAV only the sum-of-the-parts value of the individual companies is considered, i.e. transaction activity, turnaround expertise and the brand strength of the Mutares are not included in the following calculation:
 

Notes on changes in NAV in Q1/2018:
- Automotive segment: STS Group AG was valued for the first time on the basis of the issue price at the IPO of 1 June 2018.
- Net Cash: Q1/2018 affected by ongoing transaction costs
- Growth rate: The growth rate for the terminal value of the discounted cash flow model applied was uniformly reduced from 1.5% to 0.5%.
- WACC: The weighted average cost of capital (WACC) is derived from the mean value of a peer group comparison per segment. For the Construction & Infrastructure segment, the WACC was increased by a flat rate of 25% to reflect the economic risk of the industry more appropriately.