STEYR MOTORS plans listing on the Frankfurt Stock Exchange

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A global leader for customized engines in mission critical special military and civil situations¹
International established customer base
Well positioned in the fast-growing defence markets of US, Asia and Americas as well as Europe with approx. 60 % of revenue² generated from military applications in the first nine months of 2024
Successful turnaround under Mutares ownership achieving adjusted EBIT³ margin of 24 % in the first nine months of 2024
Expected total revenue in the year 2024 of between EUR 41 and 45 million and adjusted EBIT³ of between EUR 9 and 11 million
Revenue growth between 2022 and 2023 of 36 % and targeted revenue increase of over 40 % in 2025 compared to previous year
Total order backlog at September 30, 2024 of EUR 150 million⁴
Private placement of new and existing Steyr shares only to qualified investors to be completed prior to listing
Mutares to remain a committed major shareholder
Intended listing and admission to trading on the Frankfurt Stock Exchange to be completed by end of 2024

Steyr, Austria, October 15, 2024 – Steyr Motors AG⁵ (“Steyr” or “Company“), a stock corporation under Austrian law headquartered in Steyr, Austria, is preparing, together with its existing main shareholder Mutares SE & Co. KGaA (“Mutares“), for a private placement of new and existing shares in the Company (“Steyr Shares“) and subsequent inclusion of the Steyr Shares to trading on the open market (Freiverkehr) of the Frankfurt Stock Exchange (Scale segment). The planned listing in the Scale segment is intended to lay the foundation for Steyr’s continued profitable growth and value creation, greater international visibility in line with its international sales expansion and access to greater financing options. The listing and the commencement of trading on the Frankfurt Stock Exchange is expected to be completed by the end of 2024.

Julian Cassutti, CEO of Steyr comments “Steyr has become one of the global leaders in customised engines for special military and civil situations. Our patented mission critical engines with high power to weight ratio and monoblock design are in high demand, driving both revenue growth and profitability of Steyr. Therefore, the listing is the logical next step as we continue this growth path.”

Johannes Laumann, CIO of Mutares comments “We are proud of the achieved turnaround since our acquisition of Steyr, the results of which is already evident in the Steyr 2024 achieved revenue and profitability, we are excited about 2025 and 2026 and the growing order backlog, which is why we intend to remain a committed significant shareholder to enjoy the upside of what we have created.”

One of the global leaders for customized engines in special military and civil situations

The Company is a global leader in the development and production of high-performance customized engines with high power density and durability. The Company’s patented and durable monoblock compact and lightweight design delivers a high power to weight ratio of up to 70kW/l displacement with multifuel capability and outstanding reliability and robustness. Hence the Company’s engines are primarily used for demanding mission critical applications such as the primary power source in military special vehicles, boats (both military and civilian) and as auxiliary power units (“APU“) for main battle tanks and locomotives.

In addition to the sale and customisation of its products, the Company supports its customers throughout the entire product life cycle with long-lasting original components and service know-how directly derived from development and production.

The Company’s products are used in the defence industry and it generates the majority of its revenue from military end user applications. In the first nine months of 2024, almost 60% of Steyr’s revenue was generated from military applications.

The majority of Steyr’s revenue is generated from engines and licence manufacturing, accounting for 70% of Steyr’s revenue in the first nine months of 2024 but an increasing amount of revenue is generated through tailor-made engineering services for B2B customers and the offering of spare parts and the newly established maintenance, repair and overhaul (incl. training) (together, “MRO“) services.

Successful turnaround during Mutares leadership

Mutares acquired the company in Q4 2022 and has implemented a successful and very swift operational turnaround. Under Mutares’ ownership, Steyr achieved an accelerated transformation with a return to revenue growth and profitability and positive free cash flow with considerable EBIT margin expansion. Mutares will remain a committed major shareholder given the Company is now very well positioned to benefit from further sustained and significant profitable growth.

International established customer base in fast growing markets

Steyr generates its revenue from a highly rated set of global customers, with approximately 60% of revenue generated from Europe, 20% from Asia and 10% from the Americas in the first nine months of 2024. The Company expects to profit from a highly favourable market environment due to rising global defence spending due to political initiatives, particularly outside of the European market, offering considerable growth opportunities. With an expected strong demand for global armoured vehicles ahead, the Company considers itself to be very strongly positioned to exploit its sales potential. In addition, a robust order pipeline is supporting the global growth strategy of Steyr.

Solid balance sheet, strong growth and cash flow

Steyr has a strong financial profile built on growth, profitability, and cash generation. The company benefits from a high visibility of revenues with prospects of growth due to its growing order backlog, significant new global business opportunities, the sales potential in customer-specific engineering and the long-term revenue potential from its newly established MRO business. The company has a strong balance sheet with lean working capital and a strong equity ratio, a net cash position of EUR 8.6 million at September 30, 2024 and no interest-bearing bank liabilities.

In the first nine months of 2024, Steyr generated revenues of EUR 30 million and Adjusted EBIT of EUR 7 million, representing a 23.8% Adjusted EBIT margin. In 2023, revenues grew by 36.1% year-on-year to EUR 38 million (2022: EUR 28 million) with total units produced increasing by over 10% in 2023 versus 2022.

Growth trajectory expected to accelerate

For the year 2024, revenues are expected to reach EUR 41 to 45 million from the production of 800 to 850 units and Adjusted EBIT to be in the range of EUR 9 to 11 million.

The market environment is very beneficial and has led to very strong momentum that has resulted in an increased number of solid opportunities and a strong order book. The total order backlog in the period Q4 2024 to end of 2027 was EUR 150 million as of September 30, 2024, this consists of fixed orders, frame orders and non-binding committed sales, covering approximately 60% of the targeted total revenue in 2025, 50% in 2026 and 40% in 2027.

In 2025 Steyr is targeting to deliver a year on year revenue growth in excess of 40% with an Adjusted EBIT margin of over 20% and production beyond 1,250 units.

Steyr targets to increase the Adjusted EBIT by approximately four times by 2027.

Private Placement to support growth

In advance of the listing Steyr and Mutares intend to complete a private placement of new and existing shares (“Transaction”), net proceeds of which will be used to accelerate growth and general corporate purposes of Steyr. Hauck Aufhäuser Investment Banking will act as Sole Global Coordinator in connection with the planned transaction.

Company profile of Steyr Motors AG

Headquartered in Steyr, Austria, Steyr is a global leader in the development and production of high-performance customized special engines with high power density and durability. The Company’s engines are primarily used for military special vehicles, boats (both military and civilian) and as APUs for main battle tanks and locomotives. For the full year 2024, revenues are expected to reach EUR 41 to 45 million and Adjusted EBIT to be in the range of EUR 9 to 11 million. In 2025 Steyr is confident of delivering a year on year revenue growth in excess of 40% with an Adjusted EBIT margin of over 20% and production beyond 1,250 units.

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 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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¹Based on company assessment.

² All historical financial information in this press release relates to Steyr Motors Betriebs GmbH, which will be merged into Mutares Austria Holding-01 GmbH to achieve stock market readiness.

³ “EBIT” is defined as Revenues + Change in inventories + capitalized self-generated assets + other Income – Material expenses/purchased services – personnel expenses – other operating expenses – depreciation & amortization. From 2024 onwards, EBIT includes effects from the capitalization of internally generated intangible assets (IAS 38) of €1.8m and certain OPEX adjustments due to the IFRS treatment of leases (IFRS 16). In addition, EBIT 9M 2024 is improved by €3.3m compared to 9M 2023 due the absence of an impairment on land & buildings in the context of a sale and leaseback transaction in 2023.

“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, in 2024 totalling €0.5 million and one-off adjusted intercompany restructuring related expenses totalling €1.5 million.

“Adjusted EBIT-Margin” is defined as Adjusted EBIT divided by Revenue.

⁴The total order backlog of EUR 150 million includes both legally binding and non-legally binding orders and consists of (i) the firm order backlog, (ii) the order backlog of framework agreements and (iii) the tied sales for the period between Q4 2024 and end 2027. The “firm order backlog” includes legally binding customer contracts where an order for specific quantities and delivery dates has been placed and the sales have not yet been booked. The “order backlog of framework agreements” includes 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). The “committed sales” includes 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.

⁵The company is currently still trading under the name Mutares Austria Holding-01 GmbH. In order to make the company eligible for listing on the stock exchange, Steyr Motors Betriebs GmbH will be merged into the company and the company will then be converted into a stock corporation under Austrian law.

For more information, please contact:

Steyr Motors AG
Investor Relations
Phone: +436766222367
E-mail: ir@steyr-motors.com
www.steyr-motors.com

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

Press Contact in Germany, Austria, Switzerland
CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Phone: +49 89 125 09 0333
E-mail: sh@crossalliance.de
www.crossalliance.de

Press Contact in France
CLAI
Matthieu Meunier
Phone: +33 06 26 59 49 05
E-mail: matthieu.meunier@clai2.com

Press Contact in UK
14:46 Consulting
Tom Sutton
Phone: +44 7796 474940
E-mail: tsutton@1446.co.uk

IMPORTANT NOTICE

This press release constitutes neither an offer to sell nor a solicitation to buy Shares or other securities of the Company. The shares of the Company referred to in this announcement (“Shares”) will be placed exclusively by way of a private placement. There will be no public offering of Shares in Germany or any other jurisdiction.

This press release may not be distributed, published or released in the United States of America, Canada, Australia or Japan. It does not contain or constitute an offer or solicitation of an offer to purchase or subscribe for any Shares or other securities of the Company in the United States of America, Canada, Australia, Japan or in any jurisdiction in which such offer or solicitation would be unlawful. The Shares referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended. The Shares may not be offered or sold in the United States of America. There will be no public offering of the Shares in the United States of America.

Certain statements contained in this press release may constitute “forward-looking statements”. These forward-looking statements are based on the current views, expectations, assumptions and information of the Company’s management. Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Due to various factors, actual future results, developments and events may differ materially from those described in these statements; neither the Company nor any other person assumes any responsibility whatsoever for the accuracy of the opinions contained in this press release or the underlying assumptions. The Company assumes no obligation to update any forward-looking statements contained in this press release. Furthermore, it should be noted that all forward-looking statements speak only as of the date of this press release and that the Company does not undertake any obligation, except as required by law, to update any forward-looking statements or to conform such statements to actual events or developments.