AURELIUS publishes its 2016 annual report

29.03.2017

AURELIUS publishes its 2016 annual report

  • Provisional figures confirmed: total consolidated revenues increase by 44 percent to EUR 2.9 billion
  • Operating performance positive despite the sale of profitable and the acquisition of unprofitable Group entities
  • Fiscal year 2016 characterized by eight company acquisitions and seven exits
  • Dividend proposal of EUR 2.00 per share; increase possible in the event of additional successful exits before the annual general meeting; expansion of share buybacks
  • Solid balance sheet figures and further increase in net asset value to EUR 1.4 billion
  • Positive outlook for the current 2017 fiscal year

Munich, March 29, 2017 – AURELIUS Equity Opportunities SE & Co. KGaA (ISIN DE000A0JK2A8) published its 2016 annual report today and can show further robust growth. Total consolidated revenues increased by 44 percent to EUR 2,892.3 million in fiscal year 2016 (2015: EUR 2,013.3 million). Consolidated revenues on an annual basis exceeded EUR 3 billion and reached EUR 3,066.3 million.

Operating performance positive despite the sale of profitable and the acquisition of unprofitable Group entities

Operating EBITDA reflects the overall good development in most subsidiaries and amounted to EUR 114.0 million (2015: EUR 123.2 million) despite the sale of profitable Group subsidiaries and the acquisition of unprofitable subsidiaries. EBITDA for the combined group reached EUR 148.4 million after EUR 266.1 million in the prior year. The decrease can be largely attributed to the lower income from the reversal of negative goodwill from capital consolidation ("bargain purchase") compared to the prior year.

Eight company acquisitions and seven sales characterize the 2016 fiscal year

AURELIUS Equity Opportunities acquired a total of eight Group entities in the 2016 fiscal year. Reuss-Seiffert & Hammerl, a manufacturer of consumables for the concrete construction industry, and Conaxess Trade, an exclusive distributor for consumer goods, were acquired effective January 1, 2016. The purchases of Calumet Photographic, a multi-channel retailer for all things related to photography, as well as Working Links, the leading provider of professional and social rehabilitation services in the United Kingdom, were carried out in June 2016. Four of the eight acquisitions were effected as part of the strategic add-on acquisitions to strengthen existing subsidiaries: The cloud business CMC (Colt Managed Cloud) of Colt Group S.A., the commercial activities of the Abelan Group, the British Hospital Group, and the BSB Group. Income from the reversal of negative goodwill from capital consolidation from the eight business acquisitions amounted to a total of EUR 69.7 million (2015: EUR 176.8 million).

With a total of seven company sales, including fidelis HR, a provider for the outsourcing of human resource services, the Tavex Group, the Berentzen Group AG, and Dutch brightONE IT Services BV, income was generated in the 2016 fiscal year from exits in excess of the carrying amount of EUR 43.9 million (2015: EUR 29.4 million) as well as cash allocations in an amount considerably greater than EUR 100 million.

Dividend proposal of EUR 2.00 per share, increase possible in the event of additional successful exits before the annual general meeting and expansion of share buybacks

Due to the solid operating performance as well as the successful company disposals of the past year, the Company's Executive Board and Supervisory Board will propose a dividend distribution in the total amount of EUR 2.00 per share (2015: EUR 2.45) at the annual general meeting to be held on June 21, 2017. The base dividend was increased to EUR 1.00 per share (2015: EUR 0.90), while the additional special dividend is to be likewise EUR 1.00 per share (2015: EUR 1.55) and would be correspondingly increased in the event of additional successful company sales before the 2017 annual general meeting.

Two share buyback programs were set up in 2016 and at the beginning of 2017 with which AURELIUS shares worth up to EUR 52 million in the aggregate can be repurchased so that the shareholders can participate even more in the successful development of the business.

Solid balance sheet figures and further increase in net asset value to EUR 1.4 billion

At year-end 2016, the AURELIUS Equity Opportunities Group had cash and cash equivalents in the amount of EUR 416.4 million at its disposal (December 31, 2015: EUR 550.2 million). The consolidated equity ratio was 27 percent at the reporting date December 31, 2016 (December 31, 2015: 28 percent).

The net asset value of Group entities increased to EUR 1,420.9 million in the reporting period (December 31, 2015: EUR 1,252.7 million).

Positive outlook for the current 2017 fiscal year

"We also expect growth for 2017 as a result of the acquisition of interesting and promising companies that will further strengthen our portfolio. We will continue to hold ourselves to our strict investment criteria with respect to future acquisitions and take advantage of arising opportunities with manageable investment totals and high growth potential to generate profits. We once again expect at least six company acquisitions and two to three company sales in 2017", says Dr. Dirk Markus, Chairman of the Executive Board of AURELIUS Equity Opportunities. "With the purchase of the European business of Office Depot, the largest takeover in the Company's history, and Wex Photographic, the leading photography retailer in the United Kingdom, we have already successfully completed two company acquisitions this year."

A teleconference will be held in English at 2 p.m. today, Wednesday, March 29, 2017, with the AURELIUS Executive Board for interested investors and representatives of the press. Please send an e-mail to investor@aureliusinvest.de if you would like to register for this event.

Key figures

(in EUR millions)

1/1-12/31/2016

1/1-12/31/2015

Total consolidated revenue ¹'²

2,892.3

2,013.3

Consolidated revenues (annualized) ²

3,066.3

2,960.4

Total consolidated EBITDA ¹'²

148.4

266.1

- of which bargain purchase

69.7

176.8

- of which restructuring and non-recurring expenses

79.2

63.3

- of which sale of subsidiaries in excess of their carrying amount

43.9

29.4

Operating EBITDA of the combined group

114.0

123.2

Consolidated profit or loss ¹'²

10.5

155.4

Total earnings per share (diluted in EUR)

0.42

4.94

Cash flows from operating activities ¹'²¹

1.1

138.0

Cash flows from investing activities ¹'²

26.6

16.9

Free cash flow ¹'²

27.7

154.9

 

12/31/2016

12/31/2015⁴

Assets

1,796.6

1,924.9

  of which cash and cash equivalents

416.4

550.2

Liabilities

1,310.1

1,387.3

  of which financial liabilities

366.2

346.5

Equity ³

486.5

537.6

Equity ratio ³ (in %)

27.1

27.9

Number of employees at the reporting date

21,806

22,898

1) The prior-year consolidated statement of comprehensive income and the consolidated statement of cash flows was adjusted for comparison purposes according to the provisions set forth under IFRS 5 and IFRS 3.45 ff.

2) From continuing operations.

3) Incl. non-controlling interests.

4) The year-ago figures in the consolidated statement of financial position have been adjusted based on the provisions set forth under IFRS 3.45 ff.

Net Asset Value of AURELIUS Group entities (in EUR millions)

Group entities

NAV as of 12/31/2016

IT Services and Systems

255.4

Chemicals

159.6

Education and Training

114.1

Health and Beauty Care

64.0

Retail and Consumer Goods

193.7

Construction

48.2

Industrial

269.0

Hospitality

45.8

Other

271.1

Total

1,420.9