Company Presentation AUCTUS Capital Partners AG
AUCTUS We create market leaders Value & Growth Joint Business Success Competency & Experience Security & Trust Cross-sector Investments in manufacturing and services companies in Germany, Austria and Switzerland (D-A-CH) in enterprises with EUR 10-150m revenue following different investment opportunities Management Buy-Out (MBO) / Management Buy-In (MBI) Owner Buy-Out (OBO) Spin-Off / Carve-Out Team Company Mission &Values Products Processes & Partners Industries 1
AUCTUS the leading private equity firm in German-speaking Europe Team Continuity and extensive experience in the German medium-sized enterprise sector, the Mittelstand 22 experienced investment professionals; >100 years accumulated private equity involvement Strong know-how in all facets of entrepreneurial partnerships and various transaction situations Management and Investment Committee with a joint AUCTUS tenure of almost 10 years continuity Company For more than 10 years the leading private equity firm in the German-speaking Mittelstand More than EUR 500m assets under management with investors ranging from renowned financial institutions and family offices to successful entrepreneurs More than 100 transactions in Germany, Austria and Switzerland market leader Winner of different International Awards as best private equity firm Mission and Values As sustainable growth investor, we support medium-sized companies on their way to market leadership - We create market leaders High level of pragmatism, solution orientation and an affinity for the Mittelstand fast, discrete and professional Fairness & trust We keep our word Flexibility and creativity in our cooperation with business partners 2
AUCTUS the leading private equity firm in the German-speaking Europe Products Individual, capital efficient and tax optimized private equity solutions: Owner Buy-Out (e.g. succession arrangements, Spin-Off etc.) Growth financing (potentially through partial acquisition of shares) Management Buy-Out/Buy-In Buy & Build Strategies (e.g. market consolidation through add-ons) Spin-Off / Carve-Out Processes and Partners Fast, efficient and reliable decision-making processes executed by an experienced investment committee and management team Excellent network of financial institutions, skilled auditors, lawyers and experts together with a wide-ranging experience in different industries High transaction completion rate and a strong experience in acquisition and corporate finance Industries Deep industry experience, especially in the core industries Health Care, Education, Business Services, Consumer Goods, Industry/Technology AUCTUS focuses its investments in the industrial and technology sectors on 'hidden champions' of the German 'Mittelstand' 3
AUCTUS Team more than 90 years of experience in the private equity sector 4
Proven Track Record in a large number of industries Industry/ Technology Consumer goods and B2C Business Services Healthcare Services IT Education 5
Successful Exits after 5-7 years of cooperation The prospective exit of AUCTUS provides entrepreneurs with additional financial and organisational opportunities 6
AUCTUS Portfolio all under one roof 7
AUCTUS Investment Targets Revenues between EUR 10m and EUR 150m (EBIT> EUR 2m) Medium-sized companies with sustainable profits in German-speaking countries Excellent management teams willing to invest alongside AUCTUS Market leader or excellent market position with distinct competitive advantages Strong growth and consolidation potential within the company and the sector Transparent and controllable risks (finance, legal, technology) Mainly majority investments (or at least two-digit ownership percentage) 8
AUCTUS Investment Targets Buy & Build Fragmented market with niches Stable margins Mostly no clear USP, quality or costs leadership Excellent management teams willing to invest alongside AUCTUS Potentials of synergy Platform or ready management Broad spectrum from minority till 100% takeover; mostly Owner Buy-Out 9
Joint Business Success through value creation and growth Transaction security Joint Business Success A future for enterprises Professional support Growth through financial strength and investments in organic growth and add-ons Outstanding network of financing partners, industry experts and enterprises 3 fund generations and > EUR 500m assets under management 10
AUCTUS Footprint Growth due to roll-outs and acquisitions roll outs* and acquisitions in Europe Roll-Out M&A 4 2 3 15 5 1 25 1 1 6 2 12 16 1 1 1 1 1 Healthcare Services Business Services Education IT Consumer goods and services Industry/Technology 16** 17 2** 0 1 1** 37 * New location openings out of existing concept ** additional locations outside Europe 28 25 5 6 0 2 66 1 4 11
Joint Business Success serves as a reference Despite all the uncertainty during the financial and economic crisis, AUCTUS consistently supported and developed the company together with the management. New products and investments in innovation were important drivers of success. In 2013, Braun saw the best result in the history of the company. The company s new strategy offers a lot of opportunities in the next years and therefore a strong potential for further growth. Torsten Alex, Managing Partner, Dieter Braun GmbH AUCTUS acquired ACOMON from a stock-listed American company running a carve-out transaction. Due to the fact that the seller aimed to keep elements such as the former brand name of the company and all the IT infrastructure, a lot of difficult decisions had to be made. In the end, it turned into a great entrepreneurial story: AUCTUS together with the management team built up and cemented ACOMON s market position, which is today one of the leading manufacturer for optical monomers in the world. Without a doubt, this strong performance was primarily due to the good cooperation between the management team and the financial investors. Eckehardt Mielke, Managing Partner, ACOMON AG AUCTUS is a positive example of an excellent and reliable cooperation between a financial investor and the Mittelstand. The AUCTUS team was successful in accompanying a group of regional medium-sized companies on their way to becoming a nation-wide corporation through personal engagement and a high level of competency. Petra Langenhagen, Manager, TimePartner Holding GmbH 14
High Transaction Security through competency and experience Transaction Security Joint Business Success A Future for Enterprises Experience from more than 100 transactions results in fair, honest and feasible offers Fair and transparent valuations Nearly all LOIs lead to successful transactions Vast amount of experience and third party references Process security both internally (i.e. AUCTUS investment committee) as well as externally (i.e. through banking partners) 15
High Transaction Security demonstrated in 100 transactions AUCTUS asked the right questions during the Due Dilligence process even the unpleasant ones and proved that they understand our business. That was the best basis for our cooperation. It ensures acting in concert and very successfully, as the development of LEMO shows. But perhaps most importantly: we fit together. Bernd Schlarp, General Manager, LEMO Maschinenbau GmbH AUCTUS drew attention to their offer from the very beginning by identifying the market potential and proposing trendsetting ideas. That the transaction was completed so positively for all original shareholders was due to AUCTUS great empathy, an analytic and result-orientated collaboration as well as AUCTUS reliability. The AUCTUS team is a partner of choice for the company s chairman and enjoys our complete trust. Hr. Miesel, Hr. Weinz, Directors, Procon Holding AG AUCTUS did a great job, chose the right moment and successfully convinced the conservative founder to trust the new management team. We are looking forward to achieving market leadership in the German education sector with the strategic support of AUCTUS. The AUCTUS team is very result-orientated; that s why our cooperation is great fun. Dr. Florian Schütz, Chairman Career Partner Chairma 16
A Future for Enterprises defined by security and trust Transaction Security Joint Business Success A Future for Enterprises Continuity of management and strategy Entrepreneurial responsibility through coinvestments of more than 10% No insolvencies Fair and equal partnerships AUCTUS as an owner-run, mid-cap business respects company cultures and employees 17
Secure Prospects for enterprises Having a 51% majority of outstanding shares, AUCTUS never leveraged its situation of ownership to force the management in a certain direction. Instead, a vital dialogue arose. We have never had any legal issues regarding mutual rights and obligations neither while AUCTUS held a stake in the company nor afterwards. As a matter of fact, the opposite is true: AUCTUS gave a lot of support that was strongly in favour of the management and employees. To discuss key elements of the business strategy, a phone-call or a meeting was always possible and gave, at the end of the day, a lot of confidence to me as an entrepreneur. Matthias Niggemann, Managing Partner, Noventiz GmbH In AUCTUS we found a partner, who had an in-depth understanding of our business model. During our cooperation, AUCTUS was always available to decisively support management on equal terms without trying to control every detailed business operation. That is how a good partnership should look like. We developed a relationship of trust and respect that lasted to the successful exit and beyond. Markus Höfels, Managing Partner, Noventiz GmbH From the start AUCTUS was a solid partner on equal footing. In terms of operational, financial and even structural measures AUCTUS always supported us in a competent and sustainable manner. For our management team and employees AUCTUS was a lot more than just a financial investor. In fact, AUCTUS provided for a trustful cooperation. Oliver Walter, Managing Partner, Dialogfeld Beteiligungs GmbH We had already spoken to different financial investors by the time we met AUCTUS in 2006. We were looking for a suitable and sustainable succession arrangement for our company and employees. AUCTUS gave the most convincing answers to our questions. That s why we decided to re-invest with a double-digit percentage. Subsequently, we developed step by step the structures that allowed us to retire. In the same manner, we successfully developed the business together with AUCTUS, were able to battle the financial crisis 2008/09 and consequently, completed a successful exit in 2012 with a strategic buyer. Through the transaction we were able to sell our stake in the business. We would definitely do it again. Horst Ahlisch, Managing Partner, AS Electronics 18
Individual Private Equity Solutions for diverse equity investments 1 Management Buy-Out 2 Management in hands of new management team Succession Arrangement /Carve-Out Leadership transfer to new management AUCTUS + Management acquire shares Alternative: AUCTUS provides capital for a sector specific MBI Sale of 100% of shares Phasing-out of existing shareholders (e.g. through advisory role) Re-investment of existing shareholders Acquisition of shares (part) Partial realisation of enterprise value through the sale of company shares Entrepreneur remains responsible for the management of the company Capital provision for a company takeover / consolidation strategy (Buy&Build) Management remains in hands of the entrepreneur Capital infusion for additional acquisitions 3 Owner Buy-Out 4 Growth Capital / Consolidation / Buy&Build 19
1 Management Buy-Out / Buy-In Career Partner Germanys leading education group 2014 2015 2015 Acquisition of the Internationalen Fachhochschule Bad Honnef - Bonn Specialised on english speaking economics study with focus on Tourisms and Hospitality; Sales: 40 Mio. AUCTUS was able to win the auction process by presenting the seller an experienced Buy-In manager and a convincing concept for the existing company properties Development to Career Partner Group 5 Addons in DACH Opening of 4 new campus (Berlin, München, Düsseldorf, Bad Reichenhall) Development of Dual Study Concept to market leader in Germany Development of german speaking online study (actual with more than > 4.000 students market leader in Germany) Increase the portion of foreign students in Bad Honnef to nearly 40% Awarded as Focus Growth Champion 2016 end of 2015 Exit to Apollo Education Group 20
1 Management Buy-Out / Buy-In Career Partner Germanys leading education group 5 Addons in 8 years Growth of sales (in Mio. ) (Entry till Exit) 40 AUCTUS did a great job, chose the right moment and successfully convinced the conservative founder to trust the new management team. We are looking forward to achieving market leadership in the German education sector with the strategic support of AUCTUS. The AUCTUS team is very result-orientated; that s why our cooperation is great fun. Dr. Florian Schütz, Chairman Career Partner 10 1 Growth of EBIT (in Mio. ) (Entry till Exit) 10 21
2 Carve-Out PharmaZell leading international drug producer Purchase and Spin-Off of PharmaZell as a business division of Noveon-Pharma (Lubrizol-Group) 2006 2006-2011 2011 PharmaZell is specialised in the electro-chemical production of pharmaceutical active ingredients; Sales: 60 Mio. AUCTUS was able to successfully compete against a number of strategic buyers and financial investors due to its flexible and fast process management and the chosen transaction structure Growth Strategy and Cooperation Implementation of an independent organisational structure after the Spin-Off from the Lubrizol Group (i.a. introduction of an ERP System) Acquisition and expansion of a production site of the Lubrizol Group in India Creation of an additional state-of-the-art production site as well as a large research laboratory in India Consistent promotion of investment in research and development to expand the product portfolio Creation of a distribution office in the United States to accelerate the internationalization process and entry into the largest pharmaceutical market Financing of major capacity expansions at sites in Germany and India Subsequent successful extension of the product portfolio, especially in India Improved reporting allowed better management of working capital and cost reduction potential through efficiency improvements that made the production process more transparent Revenues tripled by the time of PharmaZell s sale in 2011 Exit to Ergon Capital Partners 22
2 Carve-Out PharmaZell leading international drug producer Growth of sales (in Mio. ) (Entry till Exit) 21 65 The employees of AUCTUS deeply impressed me with their competency, efficient way of working and especially their fair negotiation skills. The uncomplicated and transparent cooperation with AUCTUS during the preparation of the MBO was the basis for creating trust for the future. Dr. Oliver Bolzern, CEO Growth of EBIT (in Mio. ) (Entry till Exit) 2,2 12,5 23
3 Owner Buy-Out Noventiz innovative outsourcing service provider AUCTUS acquired a stake in NOVENTIZ through an Owner Buy-Out 2010 2010-2013 2013 NOVENTIZ is an outsourcing service provider for disposal solutions; Sales: 24 Mio. AUCTUS differentiated itself from other investors through understanding of NOVENTIZ complex regulatory business model Growth Strategy and Cooperation Implementation of a reporting and control system Strengthening of the management team through share inclusion of the entrepreneurial-thinking, second tier of management in the transaction Joint build-up of a third general manager Improved management of cash and cash equivalents, working capital and cost controlling Support for the realignment and creation of a sales team, e.g. by hiring of a sales manager and introducing a CRM system and sales controlling Promotion and extension of strategic competencies in business development and support in the valuation of potential purchases Online portal creation for the licensing and acquisition of an online platform for secondary commodity trade Cross-selling of NOVENTIZ services to other AUCTUS portfolio companies Exit to Seafort Advisers 24
3 Owner Buy-Out Noventiz innovative outsourcing service provider Growth of numer of employees (Entry till Exit) 49 63 We have come to know AUCTUS as a partner, who deeply reflects business models. Thus AUCTUS has been during our cooperation always on the ball and quickly approachable and indecisive able to make important decisions without interfering in operational details. That s how partnership should look like. Until the successful joint Exit and beyond, we have developed a mutually valued trust. Markus Höfels Growth of EBIT (in Mio. ) (Entry till Exit) 2,4 3,7 25
4 Industry Consolidation / Buy & Build TimePartner market leading temporary emplyoment group especially in the field of aviation 2004 2004-2005 2006 2014 Acquisition of Delta Time-Control Small group of temporary emplyoment agencies with 4 locations; Sales less then 20m The transaction was completed in only 4 months following the initial contact in April 2004 and the Holding TimePartner was established Growth Strategy and Cooperation 9 add-ons were completed in just 2 years in addition to the nucleus, DELTA Time-Control Operative value creation: Reduction of customer and industry dependencies Development and marketing of the brand First successful EXIT AUCTUS reinvests in TimePartner 26
4 Industry Consolidation / Buy & Build TimePartner market leading temporary employment group especially in the field of aviation 9 Addons in only 2 years Growth of Sales (in Mio. ) (Entry till now) 182 19 AUCTUS is a positive example of good and trusting cooperation between a financial investor and the SME community. The team of AUCTUS succeeded by his personal commitment and a high level of expertise to accompany a group of regionally active SMEs towards a Germany-wide operating group." Petra Langenhagen, CEO TimePartner Growth of EBIT (in Mio. ) (Entry till now) 2 25 27
4 Industry Consolidation / Buy & Build PharmaLex the growth champion in the pharmaceutical sector 2014 2015 2016 Acquisition of YES Pharma Services specialized service provider in development consulting, regulatory affairs and safety of drugs, medical devices and cosmetics Development to PharmaLex Acquisition of ActioMed (Spain) and Wainwright Merger with PharmaLex to PharmaLex Group Operative value creation: Expansion of product portfolio in national markets through further cooperation Implementation of a cost unit calculation for analyzing EBITDA contribution of services and customer segments as input for marketing, sales and key account management Development of leadership towards a more indicator-based management, among others by creating additional data transparency and the establishment of regular operational KPI reporting Awarded as Focus Growth Champion 2016 Acquisition of Lindeq AS (Norway) and Jacobsen Pharma & Medtech Advice (Denmark) 28
4 Industry Consolidation / Buy & Build PharmaLex the growth champion in the pharmaceutical sector 5 Addons in only 2 years AUCTUS 'entrepreneurial mindset has convinced us in the search for a strong partner for our planned international growth. Short decision paths and pragmatic approach in strategic decisions without interference in the daily operations make the cooperation with AUCTUS pleasant and efficient. Among these positive signs we could more than double the group within a year. Dr. Thomas Dobmeyer, Co-CEO Pharmalex Group, Co-founder YES Pharma Services Growth of Sales (in Mio. ) (Entry till now) 14 Growth of locations (Entry till now) 5 44 18 29
AUCTUS the outstanding growth equity investor 2016 AUCTUS Private Equity Awards Most Innovative PE Firm Best Mittelstand PE House Best Mittelstand PE Firm Best SME focused PE firm Best LBO Fund 2015 Best LBO Fund Excellence in Buy & Build Growth Capital Solution firm Recognised Leader in Partial Sale Most Outstanding Healthcare firm Best LBO Fund 2014 Best LBO Fund Best LBO German Fund Buy-Out Fund Industrial sector focused firm German portfolio of the year 30
We look forward to get in touch with you. AUCTUS Capital Partners AG Prinzregentenstraße 18 D - 80538 München Tel. +49 (89) 15 907 00 00 Fax +49 (89) 15 907 00 49 info@auctus.com www.auctus.com