Transaction-rich third quarter, Management Board confirms outlook for 2018

  • Group revenues in the third quarter at EUR 182.5 million (Q2/2018: EUR 238.1 million)
  • Group EBITDA at EUR 5.4 million (Q2/2018: EUR 25.0 million)
  • Adjusted EBITDA at EUR 6.3m and YTD 09/2018 at EUR 15.7 million (YTD 06/2018: EUR 9.3 million)
  • Management Board targets for 2018 at least one further transaction

Munich, November 22, 2018 – The Mutares Group (ISIN: DE000A2NB650) generated total revenues of EUR 182.5 million and an operating result (EBITDA) of EUR 5.4 million in the third quarter of 2018. The period was significantly influenced by the usual seasonal effects in the Automotive segment, a good operating performance in the Engineering & Technology segment and three acquisitions on the transaction side. Cash and cash equivalents of the Mutares Group amounted to EUR 69.2 million as of 30 September 2018 (31 December 2017: EUR 98.9 million).

Development in revenue in line with expectations
As expected, Group revenues of EUR 182.5 million were lower than in the previous quarter (EUR 238.1 million). Sales development in the third quarter was characterized by the continued significant contribution of the Automotive and Engineering & Technology segments, with seasonally lower sales of the STS Group (ISIN: DE000A1TNU68). At the same time, revenues at EUPEC and La Meusienne developed pleasingly compared to the previous quarter.

Positive operative development
Group EBITDA was EUR 5.4 million for seasonal reasons due to the usual holiday effects in July and August in the companies in France and Italy and thus, as expected, lower than in the second quarter (EUR 25.0 million), which was marked by deconsolidation effects. The STS Group, Balcke-Dürr Group and Donges Group as well as significant project progress at EUPEC were the positive drivers of earnings in the third quarter. All in all, four of the five segments made a significant positive contribution to Group EBITDA.

Adjusted EBITDA1) amounted to EUR 6.3 million in the third quarter of 2018, an Adjusted EBITDA of EUR 15.7 million in the first nine months, an increase of 69% compared to the first half year (EUR 9.3 million). The Engineering & Technology segment contributed EUR 4.1 million and the Automotive segment EUR 2.3 million to this positive result in the third quarter.

The Donges Group, which is now managed as a separate platform in the portfolio and specializes in steel bridges and structural engineering, made significant operational progress. Based on the completed first phase of the optimization program, the organization was set up for a sustained increase in value. On the sales side, incoming orders in steel bridge construction and civil engineering form a solid foundation for profitable, organic growth. Capacity utilization for 2019 has thus already been secured.  On this basis, Donges was positioned as an attractive platform for strategic acquisitions and complemented both geographically and in its product portfolio with the takeover of the Kalzip Group. Together with the Kalzip Group, the operational experts at Mutares have now initiated an optimization program to generate a positive earnings contribution for the Donges Group as early as 2019.

Lively transaction activity
On the transaction side, Mutares carried out three acquisitions for the Engineering & Technology segment in the third quarter of 2018, including a strategic add-on acquisition for Balcke-Dürr Group (KSS Consulting), a strategic add-on acquisition for Donges Group (Kalzip) and a platform acquisition (Gemini Rail Group) from the seller Knorr-Bremse. On the investment side, the Executive Board still targets at least one further transaction in the 2018 financial year.

Robin Laik, CEO of Mutares AG, sees the current business development largely on track and continues to see attractive opportunities in the transaction pipeline: “Our investments made good operational progress in the third quarter, which is reflected in the increase in Adjusted EBITDA to EUR 15.7 million for the current 2018 financial year. We are confident that we will meet our forecast of least one additional transaction in the fourth quarter.”

Net asset value of the portfolio
Based on developments and market conditions in the first half of the year, the net asset values (NAV) for the portfolio segments were updated as of 30 September 2018. The NAV is calculated as the sum of the segment valuations (assets less market value of debt plus net financial resources in Mutares AG excluding intermediate holding companies) with a company-specific WACC of 5%-8% and a growth rate of 0.5%. 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 Mutares are not included in the following calculation:


Segment NAV as of 30 September 2018
(in million EUR)
Automotive 100.0
Engineering & Technology 69.6
Construction & Infrastructure 25.6
Wood & Paper 7.0
Consumer Goods & Logistics 0.4
Net cash and cash equivalents 15.5
Total 218.1
NAV per share EUR 14.31

Notes on the NAV in Q3/2018:

  • Automotive segment: STS Group AG was valued as of September 30, 2018 based on the stock market price (XETRA) and the share of total capital held by Mutares AG (64%)
  • Engineering & Technology Segment: The acquisitions Kalzip (add-on to Donges Group) and Gemini Rail Group (platform) made in Q3/2018 were accounted for with a NAV of EUR 0
  • Net cash: Change compared to Q2/2018 due to dividend payment and payment in the context of the settlement of the legal dispute with Diehl

1) Adjusted EBITDA is an EBITDA indicator adjusted for special effects. The calculation is based on reported Group EBITDA, adjusted for transaction-related income (bargain purchases), restructuring and other non-recurring expenses, and deconsolidation effects.

Conference call on 22 November 2018 at 2:00 p.m.
A conference call (webcast) in English will be held on 22 November at 14:00 (CET) for analysts, investors and press representatives. Registrations can be sent by e-mail to The presentation shown during the webcast can be downloaded at

Company profile of Mutares SE & Co. KGaA

Mutares SE & Co. KGaA, Munich (, acquires medium-sized companies and parts of groups with headquarter in Europe that are being sold in the course of a repositioning process at their owners and show a clear potential for operational improvement. Mutares actively supports and develops its portfolio companies with its own investment and consulting teams as well as through acquisitions of strategic add-ons. The aim is to achieve a clear value increase with a focus on sustainable, long-term growth of the portfolio company. In 2018, Mutares’ portfolio companies generated consolidated revenues of EUR 865 million and employed more than 4,700 people worldwide. The shares of Mutares SE are listed on Frankfurt Stock Exchange under the ticker symbol “MUX” (ISIN: DE000A2NB650).