Blue Cap AG specifies its direction for profitable growth until 2026

_ Strategy update "Blue Cap 2026" with focus on core competencies
_ Growth leverage via increased M&A activities and transformation
_ Company plans two to four transactions per year in future
_ One to two exits planned for 2024 – appropriate companies identified
_ Expansion of the acquisition radius to include companies in special situations
_ Net asset value to increase to EUR 60 per share by the end of 2026

Munich, November 27, 2023 Blue Cap AG ("Blue Cap") today presents its plans for profitable growth until 2026. To this end, the Management Board newly formed in October, consisting of Dr. Henning von Kottwitz (CEO) and Henning Eschweiler (COO), has further developed and specified the established corporate strategy ‘Buy, Transform, Sell’. The strategy update "Blue Cap 2026" aims to increase the net asset value (NAV) per share to EUR 60 by the end of the 2026 financial year (June 30, 2023: EUR 30.36).

The ambitious target is underpinned by measures and milestones. The core of the strategy implementation is a significant increase in M&A transactions and the continued active transformation of the portfolio companies. The company plans to carry out two to four transactions per year in future.

Use of Blue Cap expertise for portfolio acquisitions and consistent implementation of company sales as a lever for value realization
An increased number of company acquisitions and the resulting potential for value appreciation should make a significant contribution to achieving the target by 2026. As already announced when the Q3 figures were published at the end of October, Blue Cap will expand its transaction radius to include special situations. The main objective within this decision is to significantly increase the return on invested capital (ROIC) in the future. Blue Cap attaches particular importance to those acquisitions that are characterized by a high value leverage in relation to the purchase price.

In 2023, Blue Cap succeeded in developing two companies under difficult conditions in such a way that they can be sold in 2024. The proceeds from the sale are then to be reinvested in new companies in the near future.

Dr. Henning von Kottwitz, CEO of Blue Cap, explains: "After a difficult economic year, we will increasingly exploit opportunities in the changing market environment in 2024. "Blue Cap 2026" reflects this with a larger number of value-generating M&A transactions and an even stronger focus on our transformation expertise. Our 'Value Creation Journey' will therefore start at a lower entry valuation and lead to a significantly increased ROIC over the holding period."

Increasing value through transformation is at the heart of the company's DNA
Active portfolio management in the portfolio companies is the second key growth area for Blue Cap. The company's proven transformation strength is characterized in particular by the rapid and consistent implementation of measures. This ability is based on comprehensive restructuring expertise, which has been successfully deployed in recent months via the Blue Cap Transformation Radar: This is based on key figure-based management of the portfolio companies.

Henning Eschweiler, COO of Blue Cap, emphasizes: "Our team proved in 2023 that we can turn things around: We reduced the Group's net debt by around 25% under difficult macroeconomic conditions and implemented EBITDA-effective measures in the low double-digit million range. "Blue Cap 2026" builds on these capabilities. We explicitly include 'turnaround' in our understanding of 'transform' - which remains at the heart of our 'Buy, Transform, Sell' business model.”

Financing mainly via cash flow - Maintaining an attractive dividend policy
The financial resources for the strategic development will be generated primarily from the proceeds of exits and the improved operating cash flow resulting from the transformation. Blue Cap will continue to allow its shareholders to participate appropriately in the company's success by distributing dividends.

Outlook for business development in 2023 confirmed
Blue Cap confirms the guidance for the 2023 financial year, which was adjusted at the end of October. The Management Board expects revenue of EUR 265-285 million and an adjusted EBITDA margin of 7-8%.

It is currently expected that the NAV per share at the end of 2023 will be slightly below the level at the end of the first half of 2023. This is due to a noticeable reduction in valuation multiples and the weaker than expected second half of 2023. The company's new NAV target is based on the premise that there will be slight economic growth in the relevant markets in 2024, which should intensify by 2026.

Hello, my name is Lisa Marie Schraml

Investor Relations & Corporate Communications

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