Mutares SE & Co. KGaA
Sixth exit in 2024: Mutares successfully takes Steyr Motors public

Sixth exit in 2024: Mutares successfully takes Steyr Motors public

• Listing of Steyr Motors in the Scale segment of the Frankfurt Stock Exchange
• Globally leading specialist for tailor-made engines in mission-critical special defense and civil applications¹ with an international customer base
• Approx. 60% of revenue² from defense applications
• Successful turnaround under Mutares’ leadership with an adjusted EBIT³ margin of 24% in the first nine months of 2024
• Mutares sells 21% stake in the company and remains majority shareholder with 70.9% ownership

Munich, October 30, 2024 – Steyr Motors AG (ISIN: AT0000A3FW25, WKN A40TC4, ticker symbol 4X0) (“Steyr Motors”), a portfolio company of Mutares SE & Co. KGaA (ISIN: DE000A2NB650) (“Mutares”), today celebrated a successful stock market debut in the Scale segment of the Frankfurt Stock Exchange. The first quotation was EUR 15.90 per share, which corresponds to a market capitalization of EUR 82.7 million at the start of trading.

Preceding the listing, 1,110,000 new and existing Steyr Motors shares were placed with institutional investors in a private placement at a price of EUR 14.00 per share. With a total placement volume of EUR 15.5 million, Mutares generated gross proceeds of EUR 12.7 million. With a future stake of 70.9%, Mutares will remain majority shareholder of Steyr Motors and thus continue to participate significantly in its performance. Furthermore, within the scope of the private placement, B&C Holding Österreich GmbH (“B&C Group”) acquired a 9.9% stake in Steyr Motors at the placement price following the capital increase. The B&C Group will thus support Steyr Motors as a cornerstone investor in the future and intends to accompany the company’s further growth.

Leading Supplier of High-Performance Engines for Defense and Commercial Applications

Steyr Motors is one of the world’s leading companies in the development and production of customized high-performance engines, which are characterized by high power density and durability.¹ The company’s engines are primarily used in demanding, mission-critical areas, such as as the main propulsion in special military vehicles, boats and as auxiliary power units (“APU”) for tanks and locomotives. The majority of Steyr Motors’ revenues (approx. 70%) is generated through the sale of engines and licensed production. An increasingly large proportion of revenue is generated through customized engineering services for B2B customers as well as the sale of spare parts and newly established services in the areas of maintenance, repair and overhaul (MRO) services (including training). Steyr Motors generates around 60% of total sales with defense applications, for example in so-called “ribcraft” boats of the US Navy Seals or as APUs in tanks such as the Leopard 2.

Successful Transformation Implemented by Mutares

Mutares acquired the company in Q4 2022 and successfully implemented a very rapid operational turnaround. The accelerated transformation enabled a return to revenue growth, profitability and a positive free cash flow with a significantly expanded EBIT margin². The market dynamics for Steyr Motors are very positive in view of the increasing defense budgets in numerous countries and should be reflected in higher order intake in the future. At the end of Q3 2024, the total order backlog⁴ for the period Q4 2024 to the end of 2027 already amounted to EUR 150 million, consisting of firm orders, blanket orders and non-binding sales commitments.

Mark Friedrich, CFO of Mutares, commented: “Being listed on the stock exchange gives Steyr Motors greater independence and means that we now have every option to exploit our growth potential and accelerate our growth trajectory. The listing and thus the valuation on the stock exchange is also an indicator of the successful value creation at Mutares, after we acquired Steyr Motors around two years ago for a symbolic purchase price. Steyr Motors is another Mutares success story in which everyone can now participate.”

Dynamic growth with high profitability expected over the next years

For 2024, Steyr Motors expects revenues of EUR 41 million to EUR 45 million and an adjusted EBIT of between EUR 9 million and EUR 11 million. In 2025, Steyr Motors is aiming for year-on-year revenue growth of over 40% and an adjusted EBIT margin of over 20%.
 

Company profile of Mutares SE & Co. KGaA

Mutares SE & Co. KGaA, Munich (www.mutares.com), a listed private equity holding company with offices in Munich (HQ), Amsterdam, Bad Wiessee, Chicago, Frankfurt, Helsinki, London, Madrid, Milan, Mumbai, Paris, Shanghai, Stockholm, Vienna and Warsaw, acquires companies in special situations which show significant operational improvement potential and are sold again after undergoing a repositioning and stabilization process. For the fiscal year 2024, consolidated revenues of EUR 5.7 billion to EUR 6.3 billion are expected. Based on this, consolidated revenues are to be expanded to approx. EUR 7 billion by 2025 and EUR 10 billion by 2028. As the portfolio grows, so do consulting revenues, which together with portfolio dividends and exit proceeds accrue to the Mutares Holding. On this basis, the Holding Company is expected to generate a net income of EUR 108 million to EUR 132 million for the fiscal year 2024, EUR 125 million to EUR 150 million for the fiscal year 2025 and EUR 200 million for the fiscal year 2028. The Management Board and Supervisory Board together hold more than one-third of all Mutares shares with voting rights. The shares of Mutares SE & Co. KGaA are traded on the Regulated Market of the Frankfurt Stock Exchange under the symbol “MUX” (ISIN: DE000A2NB650) and have been part of the selection index SDAX since December 2023.

 

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¹ Based on Steyr Motors estimates.

² All historical financial information in this press release relates to Steyr Motors Betriebs GmbH, which was merged into Steyr Motors AG (formerly: Mutares Austria Holding-01 GmbH) in order to prepare for stock exchange listing.

³ “EBIT” is defined as revenue + change in inventories + own work capitalized + other income – cost of materials/purchased services – personnel expenses – other operating expenses – depreciation, amortization and impairment. From 2024, EBIT includes effects from the capitalization of internally generated intangible assets (IAS 38) in the amount of EUR 1.8 million and certain OPEX adjustments arising from IFRS lease accounting (IFRS 16). In addition, EBIT 9M 2024 will improve by EUR 3.3 million compared to 9M 2023, as an impairment loss on land and buildings as part of a sale and leaseback transaction in 2023 will no longer apply.

“Adjusted EBIT” is defined as EBIT adjusted for certain one-off M&A adjustments and fees in connection with the merger and other M&A-related expenses, totaling EUR 0.5 million in 2024 and one-off adjusted intragroup restructuring expenses totaling EUR 1.5 million.

“Adjusted EBIT margin” is defined as adjusted EBIT divided by revenue.

⁴ The total order backlog of EUR 150 million comprises both legally binding and non-legally binding orders and is made up of (i) the firm order backlog, (ii) the order backlog for framework agreements and (iii) the committed revenue relating to the period between Q4 2024 and the end of 2027. The “fixed order backlog” comprises legally binding customer contracts for which an order has been placed for specific quantities and delivery dates and the revenue has not yet been recognized. The “order backlog of framework agreements” comprises signed framework agreements with legally binding volumes or minimum order quantities in the defined periods, whereby the exact delivery dates per year have not yet been determined (no order by the customer). “Committed sales” include sales volumes from existing customers in existing (vehicle) platforms whose production is planned in the coming years, as well as the spare parts business to support existing vehicle fleets.

For more information, please contact:

Mutares SE & Co. KGaA
Investor Relations
Phone: +49 89 9292 7760
E-mail: ir@mutares.de
www.mutares.com

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