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Investor Relations
ALLGEIER SE: Supervisory Board approves annual financial statements and proposes dividend; Management Board sees positive outlook for 2015

04/21/2015

Munich, April 21, 2015 – The Supervisory Board of Allgeier SE (ISIN DE0005086300, WKN 508630) at its meeting on April 21, 2015, has approved the audited separate and consolidated financial statements for Allgeier SE for the 2014 financial year. The separate annual financial statements have been adopted as a consequence. The finalised consolidated figures essentially correspond to the preliminary figures that were announced in an ad hoc release on March 6, 2015.

Revenue and earnings trends (IFRS)

During the 2014 financial year elapsed (January 1, 2014 to December 31, 2014), the Allgeier Group achieved 3 percent revenue growth in its continuing operations to reach a level of EUR 428.2 million (IFRS basis; previous year: EUR 414.8 million). EBITDA from continuing operations stood at EUR 23.9 million (previous year: EUR 29.8 million). After depreciation, amortisation and impairment losses, Allgeier generated EUR 11.1 million of EBIT on IFRS basis (previous year: EUR 16.5 million). After deducting interest, the Group achieved EUR 6.2 million of earnings before tax from its continuing operations (previous year: EUR 12.5 million). Net income from continuing operations stood at EUR 1.1 million (previous year: EUR 5.4 million). Including disposal gains, the Allgeier Group reports EUR 2.6 million of total net income for the 2014 financial year from both its discontinued and continuing operations (previous year: EUR 3.7 million). Earnings per share for the entire Allgeier Group (discontinued and continuing operations) amounted to EUR 0.23 in the year under review (previous year: EUR 0.42). Earnings per share from the continuing operations (adjusted for amortisation relating to acquisition activity, and with normalised taxes) amounted to EUR 1.18 during the reporting year (previous year: EUR 1.52).

Key balance sheet data

Equity grew to EUR 100.7 million as of December 31, 2014 (previous year: EUR 94.7 million). The increase in liquid assets from EUR 46.7 million in the previous year to EUR 98.0 million as of December 31, 2014, was offset by a rise in financial liabilities from EUR 75.5 million at the end of 2013 to EUR 125.2 million at the end of the reporting year. The main factor for both effects is a placing of new bond in December 2014, which allowed Allgeier to establish medium- and long-term financial security for the entire corporate group on significantly improved terms.

Application of profits

The Supervisory Board has today, April 21, 2015, passed a resolution to propose to the Annual General Meeting the distribution of a dividend of EUR 0.50 per share to the shareholders from the unappropriated retained earnings EUR 19,994,078.33 as of December 31, 2014, as reported in the separate annual financial statements of Allgeier SE. The remaining unappropriated retained earnings are to be carried forward to a new account.

Outlook for 2015

In line with the statement in the management report as of December 31, 2014, the Management Board anticipates total revenue growth of between 10 and 15 percent for the continuing operations, according to planning for the 2015 financial year. The EBITDA margin (before extraordinary effects, and effects related to other accounting periods) is to rise in the magnitude of one percentage point, equivalent to above-average EBITDA growth in the magnitude of a double-digit percentage amount.

Targeted acquisitions in 2015 should also support and accelerate the growth and positioning of the Group and its individual segments on the market. Allgeier will finance its intended investments from both equity and debt. For this purpose, existing and new financing facilities are being reviewed constantly, and adapted where required. This also includes examining opportunities for equity-based financing.

The performance of the Allgeier share during the second half of 2014 is unsatisfactory in this context. After reaching highs of up to more than EUR 19.00 during the first half of 2014, the share price fell considerably during the second half of 2014 to a level of around EUR 14.00 at the end of 2014. The share has since recovered a little to a level above EUR 16.00. This corresponds to a market capitalisation of EUR 150 million.

Over recent months, various parties have expressed a general interest to the company in acquiring various individual participating interests or individual operating segments from the portfolio. Given this, the management has conducted its own calculations of the values of the individual operating segments through peer group comparisons based on what the management believes are appropriate EBITDA multiples (enterprise value/EBITDA 2014/2015). Applying the 2015 expected EBITDA for the individual business areas – including acquisitions already realised or expected in 2015 – a total value of around between EUR 330 million and EUR 400 million is derived for the operating segments (enterprise values before deducting net assets/liabilities). The management is of the opinion that the individual segments make the following contributions in this context: Experts EUR 130 million to EUR 150 million, Projects EUR 150 million to EUR 185 million, and Solutions EUR 50 million to EUR 65 million.

For an overall valuation of the Allgeier Group, the Group’s net debt (almost EUR 30 million as of December 31, 2014), the purchase prices of the companies acquired in 2015 or the entities still to be acquired, and their financial statements, as well as the holding company’s negative EBITDA contribution of around EUR 5 million for 2015 are to be taken into account.

Given these rough value estimates, the Management Board sees a marked discrepancy between the current market capitalisation of around EUR 150 million and the operating segments’ intrinsic value. Together with selected investment banks, the company is currently discussing options to structure the composition of the investment portfolio more clearly and more attractively for the capital market. Besides ongoing acquisition activity, the company is also examining the disposal or spin-off of parts of the portfolio on the capital market in this context.

The 2014 Annual Report will be published on April 30, 2015, when it can be viewed atwww.allgeier.com.