Munich, November 10, 2022 – AURELIUS Equity Opportunities SE & Co. KGaA (“AURELIUS”; ISIN DE000A0JK2A8) has published its results for the first nine months of 2022. Total consolidated revenues came to EUR 2,351.7 million, that being slightly below the level of the year-ago comparison period (Q1-Q3 2021: EUR 2,485.1 million), as expected in view of the market situation and the changes having occurred in the consolidation group. Annualized consolidated revenues from continued operations reached EUR 3,092.4 million (Q1-Q3 2021: EUR 2,436.6 million).

Operating EBITDA comes to EUR 163.8 million, almost 10 percent lower than the year-ago figure

The operating EBITDA of the combined Group in the first nine months of the current year came to EUR 163.8 million (Q1-Q3 2021: EUR 181.4 million). The year-on-year decline in the operating result was particularly influenced by persistent macroeconomic disruptions.

The restructuring and non-recurring expenses of EUR 45.7 million were less than the year-ago figure (Q1-Q3 2021: EUR 56.5 million). The net result of company exits amounted to EUR 50.1 million (Q1-Q3 2021: EUR 37.6 million), most of which being the proceeds on the sale of AKAD University. The EBITDA of the combined Group rose to EUR 182.3 million from the corresponding figure for the year-ago comparison period (Q1-Q3 2021: EUR 175.6 million). No bargain purchase gains were included in this figure, unlike the year-ago figure which included EUR 13.1 million in bargain purchase gains.

Net asset value (net) of EUR 909.0 million influenced by challenging market environment

The net asset value (net) of EUR 909.0 million at 9/30/2022 was below the level at the end of the first half (6/30/2022: EUR 1,004.2 million). This value is an expression of both a conservative valuation approach and the weaker operating performance of the portfolio companies. The net asset value (net) has been adversely impacted by the current macroeconomic environment. The Group’s portfolio companies are finding it hard to pass on the significantly higher energy costs to customers, as the recession anticipated by experts is already causing consumers to hold back on spending.

Whereas the net asset value of the portfolio companies declined by 13 percent, the net asset value (net) of the assets acquired as co-investments has risen by around 45 percent.

Consolidated cash and cash equivalents at 9/30/2022 were solid, at EUR 284.6 million (12/31/2021: EUR 444.0 million). This is to be seen as a successful outcome considering the sizable cash outflows for the dividend payment (EUR 41.5 million), share buybacks (EUR 35.0 million), and brisk investment activity, particularly in the segment of Co-Investments.

Brisk transaction activity despite the uncertain market environment

The market environment in the first nine months of 2022 was characterized by adjustments and uncertainties. Nonetheless, AURELIUS Equity Opportunities completed seven add-on acquisitions for existing portfolio companies, five co-investments, and four (partial) exits. Some of these transactions are highlighted in the following.

The European Imaging Group acquired majority stakes in two companies, CameraNu.nl in February and Cyfrowe.pl. in May. BMC Benelux completed the acquisition of the building materials division of De Rycke in March. Together with AURELIUS European Opportunities Fund IV, AURELIUS Equity Opportunities completed the acquisition of the British operations of McKesson Corporation (today: Hallo Healthcare Group) in April, that being the biggest acquisition in the Group’s history to date. The Group also pulled off an especially successful exit with the sale of AKAD University in February.

Other relevant developments in the first three quarters of 2022 include the opening of a new AURELIUS Office in Düsseldorf and the appointments of Santiago González as Head of Iberia and Henrik Gustafsson as Head of Nordics, which serve to strengthen the Group’s pan-European orientation.

Challenging outlook, continued vigilance is key

In the coming months, the AURELIUS Equity Opportunities Group anticipates a perpetually stressed market environment marked by obstacles, but also opportunities for many industries. In view of the strained geopolitical and economic situation of markets everywhere, adverse trends such as rising prices for energy and raw materials, interest rate hikes, supply chain disruptions, and rising inflation rates can be expected to continue. Therefore, the AURELIUS Equity Opportunities portfolio is currently exposed to a higher risk of restricted growth. The consolidated earnings of AURELIUS Equity Opportunities will be specifically impacted by the overall smaller earnings contribution of the AURELIUS Group’s portfolio companies.

“More than ever before, vigilance is called for. The strained macroeconomic situation will further dampen the transaction environment in the coming months. Our operational specialists are thus working hard for our portfolio companies. Currently, we do not feel pressured to pursue further transactions. The sale of Briar Chemicals in October was a very successful exit for us. Generally speaking, we find it difficult to provide a reliable estimate of future performance in view of the still tense economic situation and multiple geopolitical flashpoints. The current phase calls for diligent observation and the ability to act quickly if and when decisive parameters change,” said Matthias Täubl.

Key figures

¹⁾ The consolidated statement of comprehensive income for the first nine months of last year has 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)

* The presented net asset value of the portfolio companies represents the percentage of equity held by AURELIUS Equity Opportunities.
** Treasury shares are not included in the calculation of the NAV (net) per share. Thus, the total number of shares included in the calculation is 27,064,453.