Mutares SE & Co. KGaA

Welcome everybody to the Q1 update call of the Mutaris Group. My name is Mark Friedrich, CFO of the group. Next to me is Johannes, CIO of the group. And we will run you through the presentation today. As last time, I will start with the management summary and then begin to Q1, 2026. Johannes will take over again, portfolio updates and the outlook. Since we just spoke two weeks ago, I just want to repeat the management summary that we already presented last time. So last year we reached quite a significant number in terms of holding its income of 130 million. We reached our target here. We were in the range. Also, group revenues were in the range and communicated the guidance. of 7.9 to 9.1 billion in group revenues and holding net resides net income of 165 to 200 million for 2026. The basis for this is actually the pipeline on sell side and buy side here and actually the basis for this again forms in the successful capital increase that we completed by the end of April. When looking ahead already, next milestone for us where we see each other then is the annual charitable meeting beginning of July where the company proposed a two euro dividend per share. When looking at Q1 financials, we again made a step forward in the group, reaching $1.7 billion in revenues. Second half will be much stronger in terms of revenue and also EBITDA and adjusted EBITDA due to the completion of the already signed transactions, namely the ones that we presented last time, Borealis or Wärtsilä and Jadis. that will then massively contribute to the financials in the second half of the year. EBTA already, again, $160 million due to the bargain purchases of the four transactions that we closed in Q1. I will mention the ones once we look at the lifecycle. Adjusted EBTA of $11 million made a big, big step forward compared to last year. across a lot of different portfolio companies here. Also here I will name a few when we look into the segments. The net income of the holding is pretty much flat here compared to last year where we had 30 million due to the exit of Steyer last year. This year we had no exit in Q1. Instead, we already included here the consent fee of approximately 6 million as an expense already. Therefore, you see a negative result. Otherwise, we would have been positive as we communicated all the time that due to the consigning business, we also generate positive earnings. Looking at the portfolio and the different segmentation now for the first time with the five new segments that we have communicated here that we want to steer here also in the future. You see that four out of the five segments have a positive adjusted EBITDA reached in Q1. And only the one goods and services that includes the majority of the retail part is still negative. When starting at the top, automotive and mobility, we still have here reached a positive adjusted EVTA due to the big progress here in SFC Group and also Maneus Group. Last year, we had a one-off here. That's why you see a substantial amount. But here again, I think it's a good progress when looking at the different portfolio companies here. Engineering and technology did a turnaround here from minus 15 to plus 21. Here we have included NEM Energy and Effosec especially, and both have pretty much made a big, big step forward compared to last year, contributing massively positive to the segment. The new segment infrastructure and defense also made a big step forward here. Here we have included especially also that a big step forward in terms of adjusted EVTA and we continue to do so throughout the year. I already mentioned goods and services which remains in terms of The retail part, the complicated one, but we have also here in the segment quite a lot of different good ones, and these ones are performing well, and once I'm reaching the life cycle, I will also dig into the different entities. Chemicals and Materials is a new segment introduced due to the upcoming acquisition of Jadid. Now we have here included Holiday Pigments, But once we have reached second half of the year, we will see here also much higher numbers. As always, we update our lifecycle and the cluster into the three phases that we communicate all the time. And we have highlighted here in the lifecycle the portfolio companies in green that we have upgraded. We have not downgraded any entity. Instead, we have upgraded 12 entities. And as you are familiar with our business model, We also target to divest already from optimization phase, but the majority should come from harvesting. When starting here also with the realignment phase, you see the companies at the bottom left, the ones that we closed in Q1, Haro, Holiday, Pigments, Ferrari, and Mimowrist, and these combined entities contributed massively in terms of bargain purchase. On the right side, you see the financials attached to it, and it looks like quite sound, quite okay, negative in terms of profitability and realignment, break-even in optimization, and substantially positive in harvesting. And when looking at the harvesting phase, we see here a lot of entities, and that's pretty much the transparency about what we had in the management summary, where we said that we have a big pipeline in terms of exit potential, And when looking at the lifecycle, pretty much this is what we actually also intend to deliver here throughout 26 and 27. And with this, I'll already hand over to Johannes for the update.

Thank you, Mark. I don't want to repeat what was said there. Two weeks ago. However, I will take you quickly on the portfolio and also on the outlook. And I would like to do that to give you a little bit of an insight on the operation side and specifically on one company called Dongus and how we work, what is our day-to-day in and out challenges we have. And then on the outlook, I will give you a little bit of an insight on the M&A work. So how do we make the SABIC transaction happen in the U.S., which is now planned to close by the end of June. So if you look at our portfolio, the five segments, we are leveling into the five segments, which also gives us a good portion to be risk-balanced. We are focusing at the moment on the buy side, on the energy segment, on the infrastructure segment, on the defense segment, on the chemical segment, and on industrial services segment, where we see great opportunities to grow further, also in Europe, but also especially in America and Asia. And one of the companies on the infrastructure side we're having here in our portfolio is Dongus. And we would like to go a little bit into detail of Dongus. I explain you a little bit how we work, what is the day-to-day challenge. So the transaction was done in 2017. We bought a steel manufacturer, steel business from Mitsubishi Hitachi at that point in time. They were very busy in the energy segment on the coal side of the business, very much into buildings and very little into bridges. And we took over this business in 2017, November. Actually, this was my last job as a CEO before I became board member in 2019. And I went in with a group of people. I went in with guys like Mathieu, like Christian Klingler, like Chris Schlede, who is today leading the supervisory board. And we made a restructuring plan. We made on a piece of paper, on a blank piece of paper, we made, we tore the future of the business, what we want to achieve, where we want to go. So we want to cut off the energy part on the coal segment and we want to go into bridges. This was the overall strategy, what we did. And step by step, we had to conduct some social plans. We had to shift capabilities. We had to shift capacities into this new operation. And step by step, we grew the company from, at that point in time, 35 million in sales to today, more than 110 million in sales. And we grew the company from negative profitability to a almost 10% profitability growth. as of today. So, Donges is situated in Darmstadt, very close to Frankfurt, and is the leading steel bridge maker in Germany today. Quite some impressive buildings, and quite some impressive bridges as well, constructed over the past years. And with that, I would like to give you a little insight on Donges, more what they do, and we have a little clip for you.

We are here in the Dongas pre-manufacturing hall for big bridge parts and big building parts. DONGES started in 1872. Over the years DONGES developed to a company which is now able to build the biggest bridges, to build the highest buildings. So this is what we do now.