Dear shareholders, employees, business partners and friends of AURELIUS Equity Opportunities,

As the end of the year approaches, we would like to take this opportunity to provide you with a brief interim status update.

2018 was yet another eventful year for AURELIUS. We successfully completed ten new acquisitions, including seven add-on transactions to strengthen our existing group companies. As a result, our annualized consolidated revenues rose to nearly EUR 4 billion. The net asset value is currently around EUR 1.3 billion.

By working hard with our portfolio companies every day, the almost 100 operational experts of our task force moved our currently 24 portfolio companies forward, as evidenced by the improving overall operational performance of our portfolio.

The performance of our share price, particularly in the last few months, starkly contradicts this positive operating performance. We know that the overall development of our share price has been very disappointing for the shareholders among you and the often considerable volatility has been stressful. We regret this very much, all the more so because we see hardly any endogenous reasons to explain this share price performance. And so we too can only point to a list of macroeconomic factors such as the trade war between the United States and China, Brexit, the late stage of the economic cycle, the political situation in Italy, the protests in France, etc., to explain the current state of the markets.

However, none of these macroeconomic risk factors should present overly serious problems for our business. This also applies to the effects of a possible “hard Brexit” on our British portfolio companies, some of which operate exclusively in the UKs domestic market. For those that do not, the customs duties to be imposed on exports to the EU in the event of a “hard Brexit” will probably be low and should be more than offset by improved competitiveness due to the presumably much weaker British pound to be expected under these circumstances.

From today’s perspective, we can reaffirm the overall positive outlook for the coming year 2019. We expect further improvements in the operational performance and results of our portfolio companies. And we expect to complete several profitable company sales in the coming year. We know how important it is to our shareholders that we continuously return capital to them, and they will benefit from exit proceeds also in the future. As in every previous year, our next dividend will be funded in very large part from the exit proceeds collected in the time until the next annual shareholders’ meeting. In addition, we will continue to expand our group portfolio with new acquisitions; our pipeline is well filled.

We would be honored if you continue to support us in 2019 and we wish you and your families a joyful end to the year and a good start to the new year.


Sincerely yours,

The Executive Board of AURELIUS Management SE,
General Partner of AURELIUS Equity Opportunities SE & Co. KGaA
Munich, December 17, 2018