Munich, August 11, 2022 – AURELIUS Equity Opportunities SE & Co. KGaA (“AURELIUS”; ISIN DE000A0JK2A8) has published its consolidated interim financial statements for the first half of 2022. Total consolidated revenues came to EUR 1,591.9 million (H1 2021: EUR 1,659.1 million). Annualised consolidated revenues from continued operations reached EUR 3,169.7 million, indicative of a 20 percent increase from the year-ago comparison period (H1 2021: EUR 2,652.9 million). The positive trend resulted from successful transactions in the last 12 months and the solid performance of portfolio companies.

“The first half of 2022 was marked by extraordinary and persistent macroeconomic challenges. Nonetheless, we were able to continue the positive trend of the first quarter in the second quarter as well thanks to the operating closeness to our portfolio companies and the three pillars of our investment strategy”, said Matthias Täubl, CEO of AURELIUS Equity Opportunities.

Operating EBITDA comes to EUR 127.6 million, higher than the year-ago comparison figure

The operating EBITDA of the combined Group came to EUR 127.6 million in the first half of 2022, that being 4 percent higher than the strong comparison figure for the first half of last year (H1 2021: EUR 122.4 million). The increase in operating EBITDA was largely driven by the performance of portfolio companies in the Industrial Production and Retail & Consumer Products segments. The portfolio companies moveero, Silvan, Conaxess Trade Group, Distrelec, and European Imaging Group also reported strong operating results.

Restructuring and non-recurring expenses incurred for the realignment of portfolio companies amounted to EUR 32.1 million. The decrease from the year-ago figure (H1 2021: EUR 36.6 million) is a reflection of the consistently positive performance of the portfolio companies. Gains on exits amounted to EUR 38.2 million (H1 2021: EUR 37.6 million); proceeds from the sale of AKAD University made the biggest contribution to this result. Consequently, the EBITDA of the combined Group rose to EUR 141.3 million from the year-ago comparison figure (H1 2021: EUR 124.0 million).

Net asset value is EUR 1,004.2 million despite the current economic conditions

The Group’s positive operating performance is also reflected in the net asset value (NAV), which came to EUR 1,004.2 million at 6/30/2022, roughly the same as the figure for the full year 2021 (12/31/2021: EUR 1,004.7 million). From the first quarter to the second, the NAV of the portfolio companies actually rose by 7 percent to EUR 799.4 million.

Group-level cash and cash equivalents amounted to EUR 310.3 million at 6/30/2022 (12/31/2021: EUR 444.0 million). This is a solid amount, especially considering the cash outflows for acquisitions in the amount of EUR 57.2 million, share buybacks in the amount of EUR 21.4 million, and the dividend payment of EUR 41.5 million in the first half of the year. The dividend of EUR 1.50 per share was 50 percent higher than last year’s dividend. As a result of the dividend payment, the equity ratio declined to 25.1 percent (12/31/2021: 26.0 percent).

Dynamic pace of transactions continues with additional acquisitions and exits

Despite persistent challenges in the market, AURELIUS Equity Opportunities sharpened the focus of its portfolio further in the first half of 2022. Five add-on-acquisitions for existing portfolio companies, three transactions under the co-investment structure, and two exits were completed in the reporting period.

With a view to the buy-and-build strategy, portfolio companies were strengthened further with the aid of strategic add-on-acquisitions. The Building Partners Group acquired Container Handelsbüro Peter Bonitz e. K. in January and the Group subsidiary European Imaging Group purchased a majority stake in Cameranu.nl in February. BMC Benelux acquired the construction materials division of De Rycke and VAG acquired RTS in March. The European Imaging Group completed the acquisition of a majority interest in Cyfrowe.pl in May.

The co-investment structure, operating jointly with AURELIUS European Opportunities Fund IV, made three new acquisitions in the first half of the year. Minova was purchased from the Australian company Orica Limited in a global carve-out-transaction in February. Ceramic Tile Distributors was acquired from Saint-Gobain in a carve-out-transaction in April. Also in April, the acquisition of the British operations of McKesson Corporation, including the brands LloydsPharmacy, John Bell & Croyden, and AAH Pharmaceuticals was successfully completed.

Other significant events after the reporting date included two add-on-acquisitions by the portfolio company NDS. The co-investment entity carried out the acquisitions of dental bauer and Pluradent in a combined transaction in July. AURELIUS completed the acquisition of Footasylum, which had formerly belonged to JD Sports, in early August. Finally, another portfolio company, Hammerl, was successfully sold in July.

“Thanks to our closeness to the portfolio companies, we are well prepared to react to disruptions in the current market situation, but also in a position to optimally assess opportunities for add-on-acquisitions. While the pace of transactions remains dynamic, we only act on opportunities that we consider to be valuable. Our available firepower for M&A activities gives us the necessary freedom to pursue this strategy”, Täubl stated.

Outlook: Focus on core topics and mid-market segment

The AURELIUS Equity Opportunities Group expects a consistently constructive transaction environment in the second half of 2022.

“The AURELIUS acquisition pipeline is well-filled and we have multiple exit candidates in the current portfolio. Moreover, we have defined clear goals for the coming months: First, to broaden the focus on mid-market investments; second, to optimize the foundation of our operating model; and third, to intensify our ESG activities. The market outlook in the second half of the year is unclear. Therefore, we will continue to exercise vigilance as one of our key guiding principles”, Täubl concluded.

Key figures

1) The consolidated statement of comprehensive income and the consolidated statement of cash flows from last year have been adjusted for comparison purposes in accordance with IFRS 5.
2) From continued operations.
3) Including non-controlling interests.

Net asset value of the AURELIUS portfolio (in EUR millions)

* Shown NAV of the Group companies is presented in proportion to the percentage of equity held by AURELIUS Equity Opportunities SE & Co. KGaA.
** Treasury shares are not included in the calculation of NAV (net) per share. Thus, 27,682,553 shares in total are included in the calculation.