Blue Cap AG: Significant margin improvement in the second quarter leads to solid development in the first half of 2023

• Half-year revenue (continued)⁽¹⁾ with EUR 145.4 million at previous year's level (PY: EUR 145.8 million)
• Adjusted EBITDA⁽²⁾ (continued) of EUR 11.5 million is, as expected, below the previous year's strong level (PY: EUR 15.8 million)
• Adjusted EBITDA margin (continued) in the second quarter at 9.7% significantly above the previous quarter of 6.2% - first half year at 7.9%
• Full year forecast for continued operations after Uniplast sale confirmed with group revenue of EUR 275-295 million and an adjusted EBITDA margin of 8-9%

Munich, July 26, 2023 – According to preliminary calculations, Blue Cap AG (“Blue Cap”) can look back on the first half of the year which is in line with expectations. The Executive Board confirms the full year forecast accordingly. Against the background of the Uniplast sale, all key figures below, including the information on the previous periods, relate to the continued operations, unless otherwise noted.⁽¹⁾

Blue Cap achieved consolidated group revenue of EUR 145.4 million in the first half of 2023 (PY: EUR 145.8 million). Of this, EUR 69.6 million related to the second quarter (Q1: EUR 75.8 million). The operating result (Adjusted EBITDA) was EUR 11.5 million (PY: EUR 15.8 million). After a restrained first quarter, as expected, EBITDA increased significantly in the second quarter by 40.2% to EUR 6.7 million. This shows the first successes of the operational transformation measures in the individual portfolio companies. Optimized pricing and cost management at a large number of portfolio companies led to an increase in the margin from 6.2% in the first quarter of 2023 to 9.7% in the second quarter of 2023. For the entire first half of the year, this corresponds to an adjusted EBITDA margin of 7.9% (PY: 10.5%) of the total output. The strong business development of HY-LINE and improvements at H+E had a positive effect. The decline in earnings compared to the previous year is mainly due to the expected weaker business at con-pearl after the record year 2022 and at the two companies in the Adhesives & Coatings segment.

Group key figures for continued operations at a glance

Blue Cap continues to have an unchanged solid balance sheet and financing structure. The net debt ratio (including lease liabilities), for the calculation of which the net inflows from the sale of Uniplast in July 2023 were already taken into account, increased slightly to 2.7 years (December 31, 2022: 2.6) as a result of the decline in EBITDA. However, it is well within the target corridor of less than 3.5 years.

The discontinued operation Uniplast contributed revenue of EUR 26.8 million (PY: EUR 27.5 million) and an adjusted EBITDA of EUR 1.3 million (PY: EUR 1.5 million) in the first half of the year.

Business Services with strong business development

As of June 30, 2023, Blue Cap's continued portfolio includes seven majority holdings, which are allocated to the Plastics, Adhesives & Coatings, Business Services and Others segments, and one minority holding.

In the Plastics segment, the announced decline in orders from a major customer at con-pearl had a noticeable effect compared to the previous year. However, reduced raw material prices and energy costs had an overall positive effect on the EBITDA margin in the second quarter. H+E was able to successfully conclude outstanding price negotiations in the second quarter and as of June 30, 2023 is above the previous year in terms of both revenue and adjusted EBITDA.

Declining demand at Neschen and Planatol led to a weaker first half of the year in the Adhesives & Coatings segment compared to the previous year. At Neschen, this particularly affected the area of Industrial Applications, at Planatol the areas of wood adhesives and furniture. Compared to the first quarter of 2023, however, significant improvements can be seen at Neschen, which result from the fitness program that has been running since the beginning of the year and which is likely to affect the second half of the year as well.

The Business Services segment significantly expanded its revenue and earnings in the first half of the year. HY-LINE continued to benefit from a high order backlog and a very good ability to deliver. Transline also developed very positively, especially in the second quarter. On the one hand, this is due to the increasing momentum in the language services industry. On the other hand, the successfully implemented cost-efficiency measures had a positive effect on the development of earnings. The segment, new since 2021, generates a significant part of the group's earnings. This visibly confirms the strategy of portfolio diversification.

In the Others segment, the smallest participation of Blue Cap, nokra, was below the previous year due to project postponements. At the minority holding Inheco, a noticeable drop in demand dampened revenue whilst higher costs compared to the previous year due to expansion investments affected earnings.

Segment key figures (continued) at a glance

Note: rounding differences are possible
(*) The Others segment includes nokra, the Group's holding and real estate management companies, and Gämmerler already sold in FY 2022

Forecast for 2023 confirmed: Transformation measures support stable operational performance - high potential for value growth up to 2025

With the operational transformation measures that have been initiated, which will also be consistently pursued in the rest of the year and should lead to further positive results, the Group is well positioned for the second half of 2023, which the Management Board expects will nevertheless remain economically challenging. It confirms its annual forecast of June 14, 2023, but technically adapts it in accordance with IFRS for continued operations.⁽¹⁾ Accordingly, consolidated revenue for the continued operations are forecasted at EUR 275-295 million and the adjusted EBITDA margin at 8-9%.

In the medium term, Blue Cap foresees substantial growth and earnings potential for all portfolio companies and accordingly considers the net asset value per share for the group at EUR 55 by the end of 2025 and thus an increase of this figure by around 50% compared to 2022 to be achievable.

Important

To coincide with the publication of the figures, a conference call with the Management Board of Blue Cap AG will take place at 2:30 pm today. You can register for the call using this link. The presentation will be available on our website at https://www.blue-cap.de/en/investor-relations/presentations/.

The figures disclosed in this press release are preliminary. Further details about the company can be found on the website: https://www.blue-cap.de/en/investor-relations/. The complete half-year report 2023 will be published on August 22, 2023.

⁽¹⁾ Due to the sale of Uniplast on June 14, 2023, Uniplast's contributions in the current year as in the previous year are summarized under discontinued operations. The continued operations therefore include all portfolio companies except for Uniplast. The information in this press release, including information on the prior-year periods, always relates to continued operations unless otherwise noted.

⁽²⁾ Adjustments: Adjusted for extraordinary, out-of-period and other effects from reorganisation measures and one-off effects as well as for effects arising from purchase price allocations

About Blue Cap AG

Blue Cap AG is a capital market-listed investment company founded in 2006 and headquartered in Munich. The company invests in medium-sized companies from the B2B sector and supports them in their entrepreneurial development. The holdings are headquartered in the DACH region, generate sales of between EUR 30 and 80 million and have a sound core business. Blue Cap holds mostly majority stakes in eight companies in the adhesives technology & coating technology, plastics technology, production technology, medical technology and business services sectors. The companies in the Blue Cap Group develop independently and each pursues its own growth strategy. The Group currently employs around 1,400 people in Germany and other European countries. Blue Cap AG is listed on the over-the-counter market (Scale, Frankfurt and m:access, Munich; ISIN: DE000A0JM2M1; stock exchange symbol: B7E). www.blue-cap.de

Contact:

Blue Cap AG
Lisa Marie Schraml
Investor Relations & Corporate Communications
Tel. +49 89 288909-24
lschraml@blue-cap.de