Blue Cap : 9-months-figures 2023, 25 October 2023 (English)

Financial Figures 9M 2023

Initial look at future positioning

Dr Henning von Kottwitz, CEO

Henning Eschweiler, COO

25 October 2023 - 1:30pm CEST

Blue Cap AG

Newly formed management team

Dr Henning von Kottwitz	Henning Eschweiler
Chief Executive Officer	Chief Operating Officer

Main Responsibilities	Main Responsibilities
▪ M&A	▪ Portfolio Management
▪ Finance	▪ ESG
▪ Capital Market & Investor Relations	▪ IT
Before: member of Blue Cap Supervisory Board since 2020

Blue Cap AG _ Q3 2023

2

My Blue Cap perception after 25 days as CEO: challenging situation with big value potential

• Blue Cap has not met growth expectations in 2023
• Economic headwinds challenge portfolio companies and H2/23 is lacking expected upswing
• Companies facing reduced demand from customers
• M&A activities have been low recently
• These circumstances result in a delay in value creation of one year
• Share price development is not satisfying with more than average delta to NAV

• Important transformation measures have been implemented in 2023, especially regarding restructuring programs
• Optimistic signals for 2024: we have worked on the right levers within the portfolio to benefit from an economic recovery
• Blue Cap DNA is in creating value from turnaround: lots of opportunity in the market!
• Strategic update to take Blue Cap to the next growth level

Blue Cap has big value potential

Blue Cap AG _ Q3 2023

3

Adjusting strategic focus to unleash full value potential

BUY

Increase # deals

• Market offers attractive acquisition opportunities
• Expand acquisition circle to special situations with lower equity tickets
• Continue with strategic add- on acquisitions
• Evaluate alternative financing

TRANSFORM

Leverage trans-

formation expertise

• Turnaround + Transformation as key enabler to unleash full value creation potential
• Strong track record of Blue Cap team with regard to restructuring programs and cost management
• Programs implemented in 2023 begin to show effects

SELL

Stringent

examination of exits

• Evaluation of future value generation of every single portfolio company
• Based on best owner approach consistent with Blue Cap capabilities and strengths
• Active preparation of companies for eventual exits

OUR MISSION: deliver sustainable growth + increase NAV and lower gap of share price to NAV

Blue Cap AG _ Q3 2023

4

Financial

01_ FiguresDr Henning von Kottwitz

Nine-month figures affected by challenging economic environment

Revenue

Adjusted EBITDA and adj. EBITDA margin

EUR m

136.0

CAGR 15%

222.8 209.0

152.8

EUR m and %

	CAGR 15%
	23.6
	10.3%
	8.8%
7.5%	7.6%
	15.9
	13.6
10.6

2020 (9M)

2021 (9M)

2022 (9M)

2023 (9M)

2020 (9M)

2021 (9M)

2022 (9M)

2023 (9M)

• Overall: Lower Revenues on a yoy basis: positive development at Business Services segment and full-year consolidation of Transline not making up for revenue decline at our Plastics and Adhesives & Coatings segments. Companies across portfolio experience reduced demand from customers.
• Revenue reduction across the portfolio leads to lower profitability. Adjusted EBITDA overall declined by 33% on a yoy basis.
• Inorganic revenue growth originating from our acquisitions HY-Line (08/21) and Transline (03/22).

Blue Cap AG _ Q3 2023

6

Business Services continues to grow in Q3 2023 but cannot compensate for decline in other segments

Revenue by segment

Adjusted EBITDA by segment

EUR m

Plastics

Adhesives & Coatings

Business Services

Others

5.7 -10%

6.3

71.8 -15%

84.6

63.4 -13%

72.9

71.4 +14%

62.8

2023 (9M) 2022 (9M)

EUR m

Plastics

Adhesives & Coatings

Business Services

Others -0.5

0.0

7.9		-43%
	13.8

2.9 -40%

4.9

6.2 +13%

5.5

>100%		2023 (9M)
	2022 (9M)

• Plastics: lower revenues and adj. EBITDA due to postponed major customer orders at con-pearl and H+E - with H+E further effected by lower demand for automotive parts due to overall output reductions and major fab interruptions with one major OEM (force majeur).
• Adhesives & Coatings: demand reduction both at Neschen and Planatol led to revenue and EBITDA below previous year - with initiated restructuring programs showing margin improvements (both at Neschen and Planatol)
• Business Services: continuous strong revenues and EBITDA performance at HY-LINE as company benefits from high order backlog; in particular in H1; solid incoming orders at Transline.
• Others: Revenue and EBITDA of nokra lower than previous year due to postponements of orders.

Blue Cap AG _ Q3 2023

7

Net working capital further improved due to successfully initiated transformation measures

Net working capital*

Cash conversion cycle

EUR m and in % of total output (LTM)										days
30 Sept 2023		52.7							30 Sept 2023
19%
31 Dec 2022		-7%				31 Dec 2022
19%			56.3
		-16%
30 Sept 2022										30 Sept 2022
23%				67.0
		+24%
31 Dec 2021									31 Dec 2021
24%		53.8

83

-6%

89

-13%

103

-7%

110

*Net working capital incl. contract assets/contract liabilities

• Group benefiting form further reduction of inventories and optimization of warehousing processes at all portfolio companies.
• Factoring set up and applied (e.g. HY-LINE, Neschen, con-pearl) leading to additional cash flexibility on portfolio level.
• Visibly improved receivable-levels, with DSO down by -15%(y-o-y).

Blue Cap AG _ Q3 2023

8

Equity ratio remains on solid level, leverage ratio clearly below maximum target

Equity and equity ratio

EUR m and in % of total assets

2023 (Sept)	37%	96.5

2022 (Dec)	37%	100.0

2022 (Sept)	38%	103.4

2021 (Dec)	37%	88.2

Net debt and leverage ratio

EUR m and in years

Net debt/adj. EBITDA

2.8			3.0
	2.6
	2.3
59.5	72.4	70.1
		58.7
2021 (Dec)	2022 (Sept)	2022 (Dec)	2023 (Sept)

• Net debt further reduced and benefitting from disposals and improvements in cash conversion (NWC management).
• Net leverage ratio of 3.0x below target of < 3.5x.
• Equity decreased mainly due to dividend payment and Q3 result with equity ratio unchanged at 37% and in line with lower total assets.

Blue Cap AG _ Q3 2023

9

Portfolio

02_ Update

Henning Eschweiler