Blue Cap AG defies the economic environment with a good first quarter of
2024 - significant improvement in earnings

EQS-News: Blue Cap AG / Key word(s): Quarterly / Interim Statement/Quarter
Results
Blue Cap AG defies the economic environment with a good first quarter of
2024 - significant improvement in earnings

08.05.2024 / 07:10 CET/CEST
The issuer is solely responsible for the content of this announcement.

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  * Adjusted EBITDA increases by 21% to EUR 5.8 million compared to the same
    period of the previous year

* Adjusted EBITDA margin at 8.3% (compared to 6.2% in the previous year)

* Group revenue of EUR 66.5 million below previous year as planned

* Visible results from turnaround measures in the portfolio

  * Management Board confirms outlook for 2024: revenue expected to be in
    the range of EUR 270 to 290 million and EBITDA margin (adj.) between
    8.5% and 9.5%

Munich, 08th May 2024 - In the first quarter of the year, Blue Cap AG ('Blue
Cap') benefited noticeably from the turnaround and efficiency improvement
measures initiated in the previous year, thus defying the ongoing difficult
economic environment. At EUR 5.8 million, the operating result (adjusted
EBITDA(1)) increased by 21% compared to the same quarter of the previous
year (EUR 4.8 million). This was achieved despite the fact that, as
expected, revenue of EUR 66.5 million was below the previous year's level of
EUR 75.8 million. Accordingly, the adjusted EBITDA margin improved
significantly from 6.2% to 8.3%. The development in the Plastics and
Adhesives & Coatings segments was pleasing, while Business Services had to
contend with noticeable declines. The successful restructuring at Neschen
had a particularly positive impact on earnings.

Blue Cap's balance sheet and financing structure remained solid as at March
31, 2024. At 35%, the equity ratio was slightly lower than at the end of
2023 (36%). By contrast, the net gearing ratio (including lease liabilities)
improved slightly from 2.5 years as at December 31, 2023 to 2.4 years and
thus remains well within the target corridor of less than 3.5 years. Net
financial debt remained almost stable at EUR 58.8 million. This also applies
to net working capital, which amounted to EUR 46.8 million.

Investment portfolio with significant growth in Plastics and Adhesives &
Coatings

As at March 31, 2024, Blue Cap's continuing portfolio included seven
majority shareholdings, which are allocated to the Plastics, Adhesives &
Coatings, Business Services and Others segments, as well as one minority
shareholding.

The Plastics segment benefited from a high order backlog in the logistics
area at the start of the year. This more than compensated for the slight
decline in revenue at H+E. Overall, segment revenue rose by 6% in the first
quarter compared to the previous year. Thanks to consistent cost management,
however, earnings in Plastics increased by 29% to EUR 2.8 million. The
margin was correspondingly high at 9.3% compared to 8.3% in the same quarter
of the previous year.

The Adhesives & Coatings segment reported hardly any change in revenue in
the quarter under review. While Neschen posted a slight increase, Planatol
reported a slight drop in revenue. Adjusted EBITDA saw a massive improvement
to EUR 2.5 million (previous year: EUR 0.1 million). This primarily reflects
the aforementioned restructuring success at Neschen. The margin climbed
accordingly to 11.3% (previous year: 0.6%), a level not seen for many years.

In contrast, the Business Services segment suffered a sharp decline in
revenue due to a significantly weaker order situation at HY-LINE. Transline,
on the other hand, was able to achieve almost the same level as the previous
year and reported a slightly higher result due to improved cost structures.
Nevertheless, the segment result of EUR 0.7 million in the first quarter was
well below the previous year's level of EUR 2.7 million.

In the Others segment, project postponements at Blue Cap's smallest
investment, nokra, continue to have a negative impact. At the minority
holding INHECO, the first successes from the extensive turnaround program
were realized, which is why an improvement in earnings was achieved despite
weaker revenue due to lower demand.

Segment key figures (continued) at a glance

                         EUR mn  Q1 2024  Q1 2023  Change in % or bps(*)
                       Plastics
                        Revenue     27.1     25.5                    +6%
                Adjusted EBITDA      2.8      2.2                   +29%
    Adjusted EBITDA margin in %     9.8%     8.3%               >100 bps
           Adhesives & Coatings
                        Revenue     21.1     21.4                    -1%
                Adjusted EBITDA      2.5      0.1                  >100%
    Adjusted EBITDA margin in %    11.3%     0.6%               >100 bps
              Business Services
                        Revenue     17.9     27.9                   -36%
                Adjusted EBITDA      0.7      2.7                   -75%
    Adjusted EBITDA margin in %     3.6%     9.5%               >100 bps
                    Others (**)
                        Revenue      1.4      2.1                   -33%
                Adjusted EBITDA     -0.2      0.0                  >100%
    Adjusted EBITDA margin in %   -17.2%     0.0%               >100 bps

Note: Rounding differences are possible
(*)bps=base points; (**)The Others segment includes nokra, the Group's
holding and real estate management companies.

Outlook 2024: Focus on value realization and growth through M&A

Developments in the first quarter have confirmed the cautiously optimistic
expectations of the Management Board. However, the outlook is still hampered
by an exceptionally high level of forecasting uncertainty. An effective
recovery in business activities, from which a trend could be derived, is
still lacking in the majority of portfolio companies. The forecast
communicated at the end of April is confirmed for 2024 as a whole: Revenue
between EUR 270-290 million and adjusted EBITDA margin between 8.5% and
9.5%.

In the existing portfolio, Blue Cap is concentrating on realizing value in
those portfolio companies that it has already developed to exit readiness.
In view of the process duration, the Management Board expects to be able to
communicate details on this in the summer. Secondly, the transformation
programs initiated in the portfolio will continue to be implemented.

On the buy-side, Blue Cap expects an increase in opportunities in the third
quarter. The relevant M&A market for special situations is generally
benefiting from the macroeconomic environment. However, the subset of
attractive buy candidates in line with Blue Cap's investment criteria has
been limited to date, resulting in management canceling many opportunities
at an early stage in the first quarter.

Dr. Henning von Kottwitz, CEO of Blue Cap AG, comments on the development as
follows: 'The start to 2024 was pleasing considering the significant
increase in profitability. The development is in line with our expectation
of being able to increase profitability even without major revenue growth.
At the same time, we are making good progress with our M&A activities. Even
if such processes take time, we are confident that we will soon be able to
show results.' Henning Eschweiler, COO of Blue Cap, adds: 'The good first
quarter is the result of the value enhancement projects in 2023. A team
effort that was only possible together with the managing directors and
employees of the portfolio companies involved. 2024 will now be
characterized by value creation - mainly through the indicated sell-side
transactions, but also through improved cash flows within the portfolio.'

Important note

On the occasion of the published figures, a virtual conference call with the
Management Board of Blue Cap AG will take place today at 12:00 noon. You can
register via this link.

The presentation will be available after the virtual meeting on our website
at https://www.blue-cap.de/investor-relations/praesentationen/.

Note: The information in this release always refers to continuing operations
unless otherwise stated. Continuing operations include all portfolio
companies with the exception of the Knauer-Uniplast Group, which was sold in
June 2023.

(1) Adjustments: Adjusted for extraordinary, prior-period and other effects
from reorganization measures and one-off effects as well as effects arising
from purchase price allocations

About Blue Cap AG

Blue Cap AG is a Munich-based investment company founded in 2006 and listed
on the capital market. The company acquires medium-sized companies from the
B2B sector in special situations and supports them in their entrepreneurial
development with the aim of selling them profitably at a later date. The
acquired companies are headquartered in the DACH region, generate sales of
between EUR 20 and 200 million and have a sustainably stable core business.
Blue Cap mostly holds majority stakes in eight companies from the Adhesives
& Coating Technology, Plastics Technology, Production Technology, Life
Sciences and Business Services sectors. The Group currently employs around
1,200 people in Germany and other European countries. Blue Cap AG is listed
on the open market (Scale, Frankfurt and m:access, Munich; ISIN:
DE000A0JM2M1; ticker symbol: B7E). www.blue-cap.de

Contact:

Blue Cap AG
Annika Küppers
Corporate Affairs
Tel. +49 89 288909-0
ir@blue-cap.de


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   Language:       English
   Company:        Blue Cap AG
                   Ludwigstraße 11
                   80539 München
                   Germany
   Phone:          +49 89-288 909 0
   Fax:            +49 89 288 909 19
   E-mail:         ir@blue-cap.de
   Internet:       www.blue-cap.de
   ISIN:           DE000A0JM2M1
   WKN:            A0JM2M
   Indices:        Scale 30
   Listed:         Regulated Unofficial Market in Berlin, Dusseldorf,
                   Frankfurt (Scale), Munich, Stuttgart, Tradegate
                   Exchange
   EQS News ID:    1897771

End of News EQS News Service
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1897771 08.05.2024 CET/CEST