Mutares (MUX) Investor Presentation summary

Business model and strategy

• Specializes in acquiring and turning around distressed companies, focusing on operational improvement and value creation in four segments: Automotive & Mobility, Engineering & Technology, Goods & Services, and Retail & Food.

• Targets companies with established business models and significant development potential, typically with enterprise values between EUR 100-750 million.

• Employs a hands-on approach with in-house investment and consulting teams, supporting portfolio companies through strategic add-on acquisitions.

• Aims for industry-leading, risk-optimized returns and positions itself as a global leader in special situations private equity.

• Value creation lifecycle includes acquisition, realignment, optimization, and harvesting, with an average holding period of 3-5 years and a ROIC target of 7-10x.

Financial performance and targets

• Achieved strong revenue growth: EUR 4.7bn in 2023, EUR 5.3bn in 2024, targeting ~EUR 7bn in 2025 and EUR 10bn by 2028.

• Net income for the holding increased from EUR 103m in 2023 to EUR 108m in 2024, with a 2025 target of EUR 125-150m and EUR 200m by 2028.

• Dividend per share increased to EUR 2.25 in 2024, with a new minimum of EUR 2.00 per share and potential for performance-based bonuses.

• Market capitalization reached EUR 746m at the end of 2023, with 21,348,256 registered shares.

• Maintains a strong equity ratio and significant cash reserves, supporting ongoing acquisitions and operations.

Portfolio and operations

• Manages a diversified portfolio with annualized revenues of ~EUR 7.5bn, spread across all four core segments.

• Portfolio allocation as of Q1 2025 is balanced across acquisition, realignment, optimization, and harvesting phases.

• Closed 13 acquisitions in 2024, with a strong pipeline of ~5,000 projects annually and a reputation as a trusted buyer for underperforming assets.

• Notable turnaround example: Efacec, a Portuguese energy sector player, is on track for revenue growth to ~EUR 300m and a return to profitability post-restructuring.

• Plans to acquire and divest more than 10 companies each in 2025, supporting growth and portfolio renewal.