DGAP-News: Mutares publishes audited Group figures - Record revenues and earnings for FY2017

Corporate News

Mutares publishes audited Group figures - Record revenues and earnings for FY2017

- Group revenues of approx. EUR 900 million, an increase of 38 percent over the previous year

- Group EBITDA 2017 of approx. EUR 67 million, an increase of 33 percent over the previous year

- Preliminary figures confirmed, conversion to international accounting completed

- Consolidated financial statements based on IFRS for the first time

The Mutares Group (ISIN: DE000A0SMSH2) today published its annual report for the 2017 financial year. The year was characterized by the further development of the organization and brisk transaction activity with two extremely successful exits. The figures for the 2017 financial year and the 2016 reference year are reported for the first time on the basis of International Financial Reporting Standards (IFRS). The Executive Board and Supervisory Board will propose a dividend of EUR 1.00 per share to the Annual General Meeting on July 20, 2018, to enable shareholders to participate in the Company's success.

In fiscal 2017, the Mutares Group achieved the highest revenues in the Company's history to date of EUR 899.7 million (previous year: EUR 650.1 million). The Automotive segment in particular recorded a significant increase in revenues due to organic and inorganic growth of the Elastomer Group and STS Group. Operating earnings (EBITDA) for the entire Group amounted to EUR 67.1 million (previous year: EUR 50.5 million). The portfolio companies STS Group (Automotive) and Balcke-Dürr Group with associated Donges SteelTec (Engineering & Technology) exemplify the achieved operative progress. Deloitte will be proposed to the Annual General Meeting as auditor for the 2018 financial year.

Lively transaction activity once again

The 2017 financial year was marked by four acquisitions, including three add-on acquisitions and one platform acquisition, and six exits, including two exits with significant proceeds. The buy and build approach was successfully continued with two acquisitions for the STS Group (Automotive) and one acquisition for platform investment Balcke-Dürr (Engineering & Technology) which was only acquired in 2016. In addition, the acquisition of La Meusienne from French Aperam Group represents a new platform complementing the portfolio. The sale of Eupec Germany at the beginning of the year and in particular the sale of A+F at the end of the year generated significant revenues confirming the added value created by a successfully implemented consulting and transaction approach.

Focus on four core segments in the future

The definition of the five portfolio segments is currently being reviewed. The objective is that the portfolio segments correspond more closely to the operating focus of the Mutares Group to better incorporate the already existing emphasis on technology- and production-oriented business models. This step follows the soon exit of Artmadis (Consumer Goods & Logistics), a wholesaler of tableware and glasses, by means of a French "Redressement Judiciaire" procedure. After three profitable years, Artmadis experienced a significant decline in revenues and profitability in 2017 due to the termination of a main supplier's delivery contract in 2017. In the three previous years, Mutares had succeeded in improving Artmadis' revenues and leading it to profitability. Fruitful and effective measures included, for example, establishing an own purchasing office in Hong Kong and establishing own private labels. There will be no significant effects for the 2018 financial year. The company was included in the reported Group NAV as of December 31, 2017, at EUR 2.7 million.

Emphasis on further development of the organization

Mutares invested significantly in the further development of the organization in 2017: The M&A and Operations teams have been expanded. In Milan, the Italian organization has established an additional location with its own office and local M&A team and is already showing an attractive transaction pipeline. In the UK, the founding process for another local Mutares organization has been launched. The sharpened investment focus on platform and add-on transactions unfolded its potential in the 2017 financial year, particularly at STS Group and Balcke-Dürr Group. The Management Board sees the growth opportunities sustainably strengthened by the further development of the organization and the profile of Mutares as a production-oriented, sustainable and active investor further sharpened.

Successful start into fiscal 2018 and positive outlook for the entire year

With the (partial) exit of the STS Group, which was driven as a "dual track" process and which culminated in STS' IPO on June 1, 2018, Mutares has made a successful start into 2018. This transaction represents another milestone and shows that Mutares succeeds also in leading more complex and elaborate exit processes. The Management Board expects a total of at least three acquisitions for the full year 2018. Mutares is very well positioned both organizationally and financially for further acquisitions of platforms for the portfolio and of strategic add-ons for the existing investments.

Publication of quarterly results

The publication of Q1/2018 is planned for June 26, 2018. The Annual Report 2017 of the Mutares Group is available for download at www.mutares.de/investor-relations.

Mutares AG will hold a conference call with CFO Mark Friedrich in English today, June 13, 2018, at 2 p.m. CEST for interested investors and press representatives. To register, please send an e-mail to ir@mutares.de.
Company profile of Mutares AG

Mutares AG, Munich (www.mutares.de), acquires medium-sized companies and parts of groups that are sold during a repositioning and have a clear potential for operational improvement. Mutares actively supports and develops its portfolio companies with its own investment and operational professionals as well as through acquisitions of strategic add-ons. The aim is to achieve a significant increase in value focusing on sustainable growth of the portfolio company. Mutares AG shares are traded on the Frankfurt Stock Exchange under the symbol "MUX" (ISIN: DE000A0SMSH2).

For further information, please contact us:

Mutares AG
Corinna Lumpp
Manager Investor Relations
Tel. +49 89 9292776-0
Fax +49 89 9292776-22
ir@mutares.de
www.mutares.de

Contact financial press
CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Tel.: +49 (0)89 89827227
E-Mail: sh@crossalliance.com
DISCLAIMER

These materials do not constitute an offer of securities for sale or a solicitation of an offer to purchase securities (the "Securities") of STS Group AG (the "Company") in the United States, Australia, Canada or any other jurisdiction in which such offer or solicitation is unlawful. The Securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan subject to certain exceptions.

The Securities of the Company may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The Securities of the Company have not been, and will not be, registered under the Securities Act. There will be no public offering of the securities in the United States. Any sale in the United States of the Securities mentioned in this communication will be made solely to "qualified institutional buyers" as defined in, and in reliance on, Rule 144A or another exemption under the Securities Act.

This publication constitutes neither an offer to sell nor a solicitation to buy securities of STS Group AG. The offer is being made solely by means of, and on the basis of, the published securities prospectus (including any amendments thereto, if any). An investment decision regarding the publicly offered securities of STS Group AG should only be made on the basis of the securities prospectus. Following the approval of the securities prospectus by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)), the prospectus will be available free of charge from STS Group AG, Zeppelinstrasse 4, 85399 Hallbergmoos, Germany, or on the STS Group AG website.

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