Mutares (MUX) Status Update summary

BaFin review process and current status

• BaFin issued a hearing letter detailing concerns in the 2023 financial statements, requesting clarifications and additional explanations.

• After initial responses, most BaFin questions were resolved, leaving only two topics under review: disclosures on receivables from affiliated companies and the scope of forecast information in the management report.

• The issues pertain solely to disclosures in the notes and management commentary, not to the balance sheet, income statement, or cash flow statements.

Details of remaining disclosure topics

• The first topic concerns clarity on the maturity of receivables from affiliated companies, with BaFin questioning if the disclosure was sufficiently clear or should have included quantitative data.

• The second topic involves the scope of forecasted information in the management report, focusing on KPIs such as group revenues, EBITDA, adjusted EBITDA, and holding net income.

• Management justifies the focus on these KPIs due to the diverse and unrelated nature of over 30 portfolio groups, and the influence of M&A activity on group revenues and EBITDA.

• Adjusted EBITDA is used to indicate progress across portfolio companies, while holding net income is highlighted for its relevance to dividend distribution.

• The business model's inherent uncertainty is cited as a reason for limiting forecast disclosures to these KPIs.

Next steps and timeline

• A detailed questionnaire from BaFin is expected in the coming weeks, with the finance team prepared to respond.

• An oral exchange with BaFin auditors is anticipated within two weeks, followed by a formal reply phase.

• The process is expected to conclude by the end of October, with efforts focused on achieving clarity as quickly as possible.