Blue Cap AG with significant improvement in revenue and earnings in the 2021 financial year - dividend proposal of EUR 0.85 per share

_ Group revenue rose by around 15% to 267.3 million euros (PY: 233 million euros)
_ Adjusted EBITDA margin(1) increased to 9.1% (PY: 7.6 %)
_ Net Asset Value grew to 172.8 million euros (PY: 153.9 million euros) or 39.30 euros per share
_ Base dividend rose to 0.85 euros per share

Munich, 27 April 2022 Blue Cap AG continued its dynamic and profitable growth path in 2021. The audited annual figures for the 2021 financial year according to IFRS accounting standards confirm the preliminary figures presented on 7 March.

Despite the challenging economic environment in 2021, the group revenue of the Blue Cap group increased by 15% to 267.3 million euros year-on-year (PY: 233 million euros). The operating result (adjusted EBITDA(1)) rose disproportionately to revenue to 24.6 million euros (+40% compared to the previous year, PY: 17.6 million euros) and corresponds to a margin of 9.1% (PY: 7.6%) of total operating performance. Adjusted EBIT margin increased to 4.9% (PY: 3.8%). The significant growth relates in particular to the positive momentum in the Plastics segment and the acquisitions of H+E and HY-LINE group. This was offset by the deconsolidation of Carl Schaefer Gold- und Silberscheideanstalt GmbH and declines in revenue among holdings due to the continued impact of the Covid-19 pandemic and the upheavals in global supply chains.

Net Asset Value (“NAV”) increased 12% to 172.8 million euros year-on-year (PY: 153.9 million euros), equivalent to 39.30 euros per share. The valuation methodology based on the IPEV (International Private Equity and Venture Capital Valuation) valuation standards was improved to further increase transparency when considering the enterprise value of the holdings and the group.

Continued good balance sheet quality despite high levels of investment for the future
High levels of total investments, primarily driven by M&A activities and the forward-looking formation of working capital, led to an increase in net debt in 2021. The net debt ratio (including lease liabilities for the first time) is 2.6 years (PY: 2.3 years) and thus within the target range of less than 3.5 years.

Equity increased to EUR 98.2 million euros (PY: 80.3 million euros). The main drivers were the positive net income for the year and the capital increase of 10.8 million euros implemented in August 2021. With an equity ratio of 36.7% (PY: 40.5%), Blue Cap therefore has a healthy assets and financial position to finance further growth.

Profitable dynamic growth in the largest segment Plastics
The Plastics segment performed very well in the year as a whole and, as in the previous year, is the group’s strongest segment (135.7 million euros, PY: 100.7 million euros). The significant increase is due, on the one hand, to the acquisition of the H+E group in the year under review. This has been included in the segment figures since the beginning of March 2021, although H+E’s trend in sales was curbed by the reduced number of call orders from automotive manufacturers stemming from the chip crisis. The fact that con-pearl managed to report record incoming orders is also a sign of a hopeful future. Uniplast was well placed to pass on the massive raw material price increases to customers during the year, resulting in the company developing well despite the difficult economic climate. Overall, these positive trends resulted in an increase in the segment’s adjusted EBITDA to 17.3 million euros (PY: 9.5 million euros).

Revenue for the Adhesives & Coatings segment rose moderately to 88.2 million euros (PY:85.2 million euros). Planatol managed to keep up its delivery capability throughout the year and thus meet the increased domestic demand. A contrary effect was the reduced order volume at Neschen both in the field of graphic applications and, in light of the chip shortage, in the field of industrial coatings. As a result, adjusted EBITDA decreased slightly to EUR 6.9 million (PY: 7.7 million euros).

The Business Services segment, which was newly established as a result of the acquisition of the HY-LINE group in September 2021, posted revenues of 17.6 million euros and an adjusted EBITDA of 1.1 million euros. The semiconductor shortage coupled with bottlenecks of other upstream products precluded improved sales revenue and earnings performance. At year-end, however, a greater number of delivieries had already been reported.

The Others segment contains, in addition to the holding and real estate companies of the Blue Cap group, the portfolio company nokra as well as the sold companies Gämmerler und Carl Schaefer. Project delays and postponements affected nokra's business development, nokra being by far the smallest Blue Cap holding in terms of revenue. However, there was a strong order intake in the second half of 2021, the processing of which was already having an impact in the fourth quarter. Carl Schaefer (deconsolidated as of 31 October 2021) accounted for revenue of 21 million euros in the year under review (PY: 31.8 million euros) and an adjusted EBITDA of EUR 0.5 million (PY: 1 million euros). Gämmerler’s sales revenues significantly fell year-on-year as a result of the reorganisation and focus on the service and spare parts business (2021: 2.2 million euros vs 2020: 6.8 million euros).

Segment key figures at a glance
EUR million20212020Change in %
Plastics
Revenue135.7100.734.8
Adjusted EBITDA17.39.582.8
Adjusted EBITDA margin in % 12.59.630.1
Adhesives & Coatings
Revenue88.285.23.5
Adjusted EBITDA6.97.7-11.1
Adjusted EBITDA margin in % 7.79.0-14.4
Business Services
Revenue17.60100
Adjusted EBITDA1.10100
Adjusted EBITDA margin in % 6.20100
Others (*)
Revenue25.847.2-45.4
Adjusted EBITDA-0.60.3>100
Adjusted EBITDA margin in % -1.90.7>100

Note: Rounding differences are possible
(*) The Others segment includes nokra, the Group's holding and real estate management companies, and portfolio companies already sold (Carl Schaefer sold in 2021, Gämmerler sold in 2022).

Dividend proposal of 0.85 euros per share – Dividend yield of 3.2%
Shareholders shall benefit from the positive development of business operations by means of an increased base dividend. The Management Board and Supervisory Board will propose to the Annual General Meeting scheduled for the end of June 2022 the payment of a dividend of EUR 0.85 per share (PY: base dividend of EUR 0.75 plus a special dividend of EUR 0.25 from the successful disposal of em-tec). The proposed dividend corresponds to a 13% increase compared to the previous year and and to a dividend yield of around 3.2% based on the current share price. Blue Cap thus reaffirms the initiated dividend strategy despite the overall uncertain macroeconomic situation. A special dividend is not considered for the past financial year as no substantial income from exits have been generated.

Matthias Kosch, CFO of Blue Cap AG: “We look back on a generally encouraging year 2021 despite the challenging economic climate. This also applies to the performance and development of our holdings. In addition, we were able diversify our portfolio even more by successful M&A activities and we grew profitably.”

Outlook for 2022: Revenue increase to 305-325 million euros and adjusted EBITDA margin of 9-10% targeted
The Management Board of Blue Cap AG recently confirmed its forecast for the current year 2022 in a press release dated 25 April 2022. Sales are expected to increase to around 305-325 million euros, and we expect an adjusted EBITDA margin of 9-10%. The forecast does not take account of M&A transactions and is subject to possible persistent effects of the coronavirus pandemic and as yet unknown repercussions of the Russia-Ukraine war, although Blue Cap's holdings do not generate any significant sales in Russia and Ukraine.

The audited annual financial statements are available for download online on the website www.blue-cap.de in the Investor Relations section. A detailed explanation of the NAV calculation is also included in the annual report from page 77 onwards. The change of the calculation method results in increased use of the multiple method in lieu of the previously used DCF method. This in turn results in a generally more modest increase in the enterprise values than one might assume given the operating performance of the holdings.


(1) Adjustments to reflect extraordinary, prior-periodic and other effects from reorganization measures and one-off effects, as well as effects arising from the purchase price allocations.

Hello, my name is Lisa Marie Schraml

Investor Relations & Corporate Communications


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