BAADER INVESTMENT CONFERENCE 2020 SEPTEMBER 22, …Secure Site ...Sep 22, 2020 · BAADER INVESTMENT CONFERENCE 2020 SEPTEMBER 22, 2020. 2 This material is for your general information

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B A A D E R I N V E S T M E N T C O N F E R E N C E 2 0 2 0

S E P T E M B E R 2 2 , 2 0 2 0

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This material is for your general information only. The information in this material should neither be regarded as

an offer nor a solicitation to buy, sell or otherwise deal with any investment referred to herein and is not intended

for distribution to, or use by, any person in any country, including the United States, where the investment funds

and services referred to are not authorized or registered for distribution or in which the dissemination of

information on the funds or services is forbidden. None of the information, whether in part or full, shall be copied,

reproduced or redistributed in any form. This notice does not constitute a security prospectus. No guarantee,

warranty or representation, express or implied, is given as to the accuracy or completeness of the information

contained herein; and neither of the persons mentioned in this material, nor any other company or unit belonging

to the AURELIUS Group, nor any of its officers, directors or employees accept any liability or responsibility in

respect to the information or any recommendations expressed herein.

3

C O N T E N T

Business model

Portfolio

Recent transactions

Case study GHOTEL hotel & living

Financials

Appendix

Contact

4

B U S I N E S S M O D E L

Acquisition, operational development and disposal of companies

which are in a special situation

… disputes among

shareholders

Succession issues

Obvious

optimisation potential

More than 100 company acquisitions and

sales make AURELIUS a reliable partner for

corporate groups and selling families

Current portfolio of 24 companies ,

EUR 3.0 bn in sales, broad range of industries

Average return multiple of 9.0x cash

invested

SPECIAL

SITUATIONCorporate

spin-offs

5

F R O M D E A L F L O W T O D E A L

Operations Team~ 80 in-house operational experts

Turnaround CEOs/Operating PartnersResponsible for overall restructuring effort

Supported by functional experts• Carve-out & stand-alone transition• Performance improvement / Business support• Process management• Sales & Marketing• Procurement & Supply Chain• Production & Operations• Finance• ICT• Digitalisation / e-commerce• Rebranding

TEAM

Too sick

Too healthy

#deals

coming in

p.a.

500-700

Closer look

200-250

Offers

~100

Due

Diligence

~50

Purchase

~4-7

Not in Europe

Too small

6

P O R T F O L I O S TAT U S ( 0 8 . 2 0 2 0 )

Current level of maturity

Date of acquisition

Imp

rove

me

nt

Op

tim

isa

tio

nG

row

th

2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

Europe

Licensing

business

Scholl Footwear

855.7 9.4

* in EURm

290.3 26.2

463.1 47.1

H1 2020

Cons.

Revenues*

H1 2020

Cons. op.

EBITDA*

7

Europe

T R A N S A C T I O N S 2 0 2 0 T O D AT E

March 2020

AURELIUS Equity Opportunities

acquires

from

March 2020


acquires

from

February 2020


acquires

from itsprivate owners

April 2020


acquires

from

A C Q U I S I T I O N S

May 2020

AURELIUS subsidiary

sells its Nordic business to

the management

Europe

July 2020

AURELIUS subsidiary

sells its Spanish Contract business to

February 2020


sells

to

E X I T S

July 2020


sells

to a Swiss entrepreneur

Europe

July 2020

AURELIUS subsidiary

sells its Spanish Direct business to

8

sells

to

Art-Invest Real Estate

C A S E S T U D Y

9

D Y N A M I C 3 - A N D 4 - S T A R B U S I N E S S

H O T E L C H A I N I N G E R M A N Y

GHOTEL hotel & living today is a modern 3- and 4-star business hotel chain, currently operating 17 locations in Germany and Austria

Deutsche Post Wohnen, a portfolio of corporate apartment houses, was founded in 1994 and served as hotel for own employees

Today GHOTEL hotel & living is a growing hotel operator headquartered in Bonn

418 employees (FTE)

17 leased hotels

Standardized operator model

The company focuses on the crisis-resistant and growing midscale segment (3-4 stars) in B- and C-cities with strong economic centers spread across Germany

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T H A T ´S W H A T W E B O U G H T

11

R E A L I G N M E N T B Y A U R E L I U S

Separation from former owner Deutsche Post and rebranding

Rebranding to „GHOTEL hotel & living“

New stand-alone management team

Diversification of customer group beyond Deutsche Post

Total focus on the customer

Modern look & feel, e.g. no more carpets and shampoo bottles

branded with a postal horn

Optimization and efficiency improvement

Establishing stand-alone IT infrastructure and processes

New set-up of lease contracts

Portfolio streamlining & optimization

12

R E A L I G N M E N T B Y A U R E L I U S

Investment in locations, comfort and service quality

Substantial investments in the renovation and modernization of

individual locations

Convenience was enhanced by services like 24/7 reception desk

hours, free Wifi, providing parking spaces, improving the quality

of breakfast

Introduction of reliable and consistent quality standards

throughout the group

Sales and marketing

Introduction of online bookability via own website and online

travel agencies

Intensifying of marketing activities via traditional sales channels

such as tour operators and travel agencies

Participation at trade fairs and congresses

13

S U C C E S S F U L G R O W T H S T R A T E G Y

2010

GHOTEL Koblenz

GHOTEL Wuerzburg

2012

Salzburg GueterslohDusseldorfOsnabrueck

2018 Acquisition of four Arcadia hotels

Neckarsulm Ludwigsburg

Goettingen

2018 Acquisition of two Nestor hotels2018

Acquisition and rebranding2018

GHOTEL Essen

2016

GHOTEL Bochum

2019

2010 – 2019: Opening of new hotels under own brand and successful add-on acquisitions

14

Currently GHOTEL operates 17 hotels in prime locations in A-/B and C-cities in Germany and Austria

Contracts to open eight additional hotel locations through 2023 (including “greet” Vienna, Austria)

Road ahead: Well-filled pipeline for further locations and acquisitions supported by favorable market environment

S U C C E S S F U L G R O W T H S T R A T E G Y

Contracted new hotel openings

Current hotel portfolio

15

25,6 26,5 25,7 26,2

52,2

58,6

3,9 4,4 4,2 4,2 7,0 8,0

15,2% 16,5% 16,3% 15,8% 13,3% 13,6%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

100,0%

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

2014A 2015A 2016A 2017A 2018A 2019P

Sales Operating EBITDA Op. EBITDA margin (%)

D E V E L O P M E N T O F K E Y F I G U R E S

in EURm

16

January 2020


sells

to

Art-Invest Real Estate

Buyer

Art-Invest Real Estate is a long-term oriented project development and investmentcompany headquartered in Cologne, Germany. In addition to real estatedevelopment, Art-Invest Real Estate also makes hotel investments through severalinvestment vehicles.

Transaction overview

Purchase price (EV): EUR 63 m

Earnings impact (Q1 2020): approx. EUR 50 m

Cash return over course of investment: approx. EUR 73 m

S A L E T O A R T - I N V E S T R E A L

E S T A T E

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O U T L O O K : C O V I D - 1 9 A N D B E Y O N D – W H E R E

D O W E G O F R O M H E R E ?

While caused by a virus rather than the causes we usuallyexperience (bad/overly bureaucratic management in particular), we are quite good at dealing with special situations.

AURELIUS operations team went into overdrive working with theportfolio. Cost cutting and extensive usage of short-time work/furlough programs to protect earnings.

Portfolio cleanup executed (Bertrams, MEZ etc.).

ZIM Aircraft seats in administration, Pre-pack („Insolvenzplan“) under development; timing of industry recovery remains to beseen.

Sales recovering accross the portfolio, profitability thresholdslowered by cost cuts should further boost earnings in quarters tocome.

Uncertainty and disruption creating significant dealflowopportunities over coming 12 months.

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P R O F I T A N D L O S S S TAT E M E N T H 1 2 0 2 0

Total consolidated revenues

Consolidated revenues (annual.) 1,2

EBITDA of the combined Group

of which gains on bargain purchases

of which restructuring and non-recurring expenses

in EURm

of which gains on exits

Consolidated operating EBITDA

Earnings per share, diluted (EUR)

1/1-6/30/2019 1/1-6/30/2020

-1.58 3.26

1,890.4 1,628.1

3,234.3 3,027.9

53.8 258.0

-/- 145.0

-42.0 -44.4

-6.8 82.1

102.6 75.3

-51.0 115.4Consolidated profit 1,3

1) The prior-year consolidated statement of comprehensive income was adjusted for comparison purposes according to the provisions set forth under IFRS 5.

2) From continued operations.

3) Including non-controlling interests.

decreased due toSOLIDUS, ScanCo and

GHOTEL exits

almost steady despiteCOVID-19 restructuring

needs

mainly GHOTEL exit

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S P L I T O F R E V E N U E S B Y S E C T O R , P O R T F O L I O S TAT U S A N D V I N TA G E

(in EURm)

Consolidated revenues by sector

Services & Solutions

Industrial Production

Retail & Consumer Products

Other

Consolidated revenues by portfolio status

Improvement

Optimisation

Growth

Other

Consolidated revenues by vintage

< 18 months

18 months - 36 months

> 36 months

Other

H1 2020

150.2

265.0

1,193.9

19.0

H1 2020

855.7

290.3

463.1

19.0

H1 2020

248.8

349.5

1,010.9

19.0

in %

9 %

16 %

74 %

1 %

in %

53 %

18 %

28 %

1 %

in %

15 %

22 %

62 %

1 %

H1 2019

93.6

449.9

1,342.4

4.5

H1 2019

845.2

497.2

543.5

4.5

H1 2019

290.5

856.9

738.5

4.5

in %

5 %

24 %

71 %

< 1 %

in %

45 %

26 %

29 %

< 1 %

in %

16 %

45 %

39 %

< 1 %

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S P L I T O F C O N S O L I D AT E D O P E R AT I N GE B I T D A B Y S E C T O R , P O R T F O L I O S TAT U SA N D V I N TA G E

(in EURm)

Cons. operating EBITDA by sector




Other

Cons. operating EBITDA by portfolio status

Improvement

Optimisation

Growth

Other

Cons. operating EBITDA by vintage

< 18 months


> 36 months

Other

H1 2020

13.2

26.5

43.0

-7.4

H1 2020

9.4

26.2

47.1

-7.4

H1 2020

3.0

20.4

59.3

-7.4

in %

18 %

35 %

57 %

-10 %

in %

13 %

35 %

62 %

-10 %

in %

4 %

27 %

79 %

-10 %

H1 2019

12.4

45.5

55.2

-10.5

H1 2019

25.6

36.9

50.6

-10.5

H1 2019

6.2

37.8

69.1

-10.5

in %

12 %

44 %

54 %

-10 %

in %

25 %

36 %

49 %

-10 %

in %

6 %

37 %

67 %

-10 %

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B A L A N C E S H E E T H 1 2 0 2 0

12/31/2019 6/30/2020

2,541.5 2,372.7

435.7 394.5

2,113.3 1,871.0

468.9 409.2

428.2 501.7

16.8 21.1

13,486 12,935

Assets

of which cash and cash equivalents

Liabilities

of which financial liabilities

Equity 1

in EURm

Equity ratio 1 (in %)

Number of employees at reporting date

1) Including non-controlling interests.

increase showing solid state of AURELIUS

Group

down due to exits (ODE Nordics & Spain,

Bertrams)

lower due to GHOTEL exit in H1 2020

22

Other

NAV total

by sector (in EURm)




NAV per share (EUR)

264.5

390.7

101.8

354.3

1,111.3

36.12

12/31/2019

Based on DCF-model

Data used are actuals as of June 30, 2020, 3/9 forecast and budgets of the Group companies for the next three years (2020-2022), 0.5 % growth rate assumed thereafter

For listed subsidiary HanseYachts, its respectivemarket cap was used

WACC (weighted average cost of capital) is basedon respective individual peer groups, ranging from6.10 % to 12.55 %, average 8.30 %

Changes reflect the deterioration of the globaleconomy due to COVID-19 as well as the reductionof the AURELIUS share price affecting the value oftreasury shares

MODE OF CALCULATION

Total

< 18 months


> 36 months

Other

by vintage

119.6

203.4

381.5

255.3

959.8

in EURm

12 %

21 %

40 %

27 %

100 %

in %

298.6

317.0

88.9

255.3

959.8

31.19

6/30/2020

N E T A S S E T VA L U E O F G R O U P U N I T S

A S O F J U N E 3 0 , 2 0 2 0

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P O R T F O L I O P E R F O R M A N C E E X I T S 2 0 0 6 - 2 0 1 9

Fast recovery of invest to =>

Company or Group

Time of

Purchase Peak ExposureMoney at Risk

after 1 year Money Returned

Unrealized

Value /

Equity Value Total Returns

Total ReturnsMultiple

(EUR m) (EUR m) (EUR m) (EUR m) (EUR m) (MoC)

DFA Jul. 06 2,85 2,16 1,28 0,00 1,28 0,5x

Scherpe Aug. 06 0,16 0,12 0,99 0,00 0,99 6,2x

Grillo Peißenberg Okt. 06 0,10 0,04 0,06 0,00 0,06 0,6x

KWE Dez. 06 2,00 0,00 6,76 0,00 6,76 3,4x

Schabmüller Mrz. 07 0,00 0,00 77,59 0,00 77,59 16.437x

EDS Group Apr. 07 3,30 3,01 10,51 0,00 10,51 3,2x

Schleicher Jul. 07 1,64 0,00 0,43 0,00 0,43 0,3x

Pohland Okt. 07 0,84 0,00 0,00 0,00 0,00 0,0x

Einhorn Nov. 07 0,74 0,37 0,11 0,00 0,11 0,1x

WVC Nov. 07 0,61 0,00 2,35 0,00 2,35 3,8x

KTD aythea Jan. 08 0,00 0,00 3,13 0,00 3,13 3.133.769x

Mode & Preis May-08 1,06 0,00 19,13 0,00 19,13 18,0x

Channel21 Aug-08 0,08 0,00 11,59 0,00 11,59 138,7x

BCA Jan-09 0,00 0,00 9,69 0,10 9,79 9.792.527x

Consinto Feb-09 0,00 0,00 23,84 0,00 23,84 23.837.437x

GIP Oct-08 0,48 0,47 60,11 36,00 96,11 201,9x

Sit-up Apr-09 0,16 0,00 5,37 0,00 5,37 32,7x

RPD Oct-10 14,86 7,02 11,23 0,00 11,23 0,8x

connectis (CH) Jun-08 0,18 0,00 42,32 0,00 42,32 232,7x

ChemInvest Mar-10 8,00 6,68 21,36 3,00 24,36 3,0x

GHOTEL Real Estate Dec-10 11,00 10,31 52,38 0,00 52,38 4,8x

fidelisHR May-13 1,50 0,76 59,10 0,00 59,10 39,5x

Tavex Apr-15 2,00 0,00 20,36 0,00 20,36 10,2x

Berentzen Sep-08 12,89 10,48 42,55 0,00 42,55 3,3x

Publicitas Jun-14 1,70 0,00 12,68 0,00 12,68 7,5x

brightONE Jun-13 0,63 0,00 29,37 0,00 29,37 46,7x

PET Invest Jul-07 4,30 2,11 14,47 0,00 14,47 3,4x

Secop Nov-10 15,07 0,00 155,52 0,00 155,52 10,3x

Getronics May-12 8,00 0,53 242,45 0,00 242,45 30,3x

Studienkreis Jan-13 6,45 6,34 74,95 0,00 74,95 11,6x

AH Industries Mrz. 17 0,01 0,00 0,59 0,00 0,59 79,9x

Allied HC Dez. 15 4,27 4,27 4,15 0,00 4,15 1,0x

Working Links Jun. 16 15,66 15,06 9,68 0,40 10,08 0,6x

Granovit Nov. 17 8,99 0,76 9,76 0,00 9,76 1,1x

RSH Dez. 15 15,87 4,50 0,40 7,00 7,40 0,5x

Solidus Apr-15 13,29 6,36 222,10 0,00 222,10 16,7x

Scandinavian Cosm. Jan-16 0,26 0,00 51,10 0,00 51,10 192,9x

Ghotel Jan-06 0,00 0,00 55,83 20,46 76,29 76.287.327,1x

Total 158,98 81,36 1.365,29 66,96 1.432,25 9,0x

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A P P E N D I X

Financial calendar

Research

Management

Investment history

25

F I N A N C I A L C A L E N D A R / R E S E A R C H

FINANCIAL CALENDAR

August 13, 2020

September 21, 2020

September 22, 2020

November 12, 2020

November 16, 2020

RESEARCH

Baader/Helvea

Berenberg

Commerzbank

Hauck Aufhäuser

Half-year Report 2020

Berenberg Goldman Sachs Conference

Baader Investment Conference

Press release Q3 2020

Deutsches Eigenkapitalforum

EUR 23.30/buy (August 14, 2020)

EUR 29.50/buy (August 24, 2020)

EUR 36.00/buy (August 13, 2020)

EUR 59.00/buy (March 30, 2020)

26

M A N A G E M E N T T E A M W I T H M O R E T H A N

1 0 Y E A R S O F E X P E R I E N C E I N A U R E L I U S E A C H

Executive board

Year joined Aurelius

Business Administration and PHD at St.Gallen and

Copenhagen

Visiting Research Fellow at Harvard University

Previous experience from

McKinsey & Company

Dr. Dirk Markus

CEO & Co-founder

2006

Physics in Leipzig and Lausanne

Previous experience from McKinsey & Company

Co-founder of Equinet AG

Gert Purkert

COO & Co-founder

2006

Mechanical engineering at Technical University of

Berlin

More than 20 years of experience with realignment and improvement of

companies

Fritz Seemann

CDO

2009

International Business Relations at the University

of Applied Sciences in Eisenstadt and at Helsinki Business Polytechnic

Previous experience with

midsized M&A- and restructuring advisory

Matthias Täubl

CRO

2008

27

AURELIUS Iberia is established

5

12 13 1315 14 15 15

18

23 2220 21

23

M O R E T H A N A D E C A D E O F I N V E S T M E N T

H I S T O R Y

AURELIUS Netherlands BV is established

Milestones

2006 20192007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Income and profit hit all-time high due to large exits of very profitable companies

Largest exit in the history with sale of Solidus for EUR 330 m (enterprise value)

Annualized consolidated revenue exceeds EUR 1 bn

Aurelius changes listing to Munich Stock Exchange

Sale of Schabmüller

A listed subsidiary AURELIUS AG is set up on the Frankfurt Stock Exchange

Aurelius acquires GHOTEL Group, which has been in its portfolio ever since

Portfolio development

Aurelius’ current market cap of EUR 1.04 bn1

Increased presence in the Nordics hiring further people to the Stockholm office

DanfossHousehold Compressors is acquired by Aurelius and renamed SECOP

Studienkreisand fidelis HR are acquired

1) As of 26 August 2019

First large exit with the sale of Wellman International for an EV of EUR 42 m

Aurelius changes from a joint-stock company into an SE & Co. KGaA

Reaching EUR 1 bn in market cap (January 2015)

Convertible bond issued with a principal amount of EUR 166.3 m

AURELIUS Nordics AB is establishedAURELIUS UK is incorporated

28

AURELIUS DACH

Ludwig-Ganghofer-Straße 6, 82031 Gruenwald

Germany

Phone: +49 89 4520527 0, E-Mail: [email protected]

Anger Palais, Unterer Anger 3, 80331 Munich

Germany


AURELIUS UK

6th Floor, 33 Glasshouse Street, London W1B 5DG

United Kingdom


AURELIUS NORDICS

Sturegatan 34, 11436 Stockholm

Sweden

Phone: +46 812 844 511 E-Mail: [email protected]

AURELIUS IBERIA

Velázquez 53, 2º Izqda, 28001 Madrid

Spain


AURELIUS BENELUX

UN Studio, Parnassusweg 819, 1082 LZ, Amsterdam

The Netherlands


C O N TA C T

Stockholm

Amsterdam

London

Munich

Madrid

Documents

BAADER INVESTMENT CONFERENCE 2020 SEPTEMBER 22, …Secure Site ...Sep 22, 2020 · BAADER INVESTMENT CONFERENCE 2020 SEPTEMBER 22, 2020. 2 This material is for your general information