SLIDE 1
Company Presentation Callista
SLIDE 2 Management Summary
§ Callista Private Equity focuses on the acquisition of majority stakes in companies, business units or non-core group assets facing special situations. § Our targets are typically loss making or otherwise distressed entities such as underperforming subsidiaries or non-core
- perations which act in a difficult market environment
§ Our success is based on improving operational and financial structures and implementing a consequent focus on sustainable growth on a standalone basis. § Callista’s team of operationally experienced experts concentrates on the initial carve-out and an immediate initiation of the turnaround by improving business structures. § We focus on the carve-out and restructuring process, targeting sustainably improving profitability via a repositioning or increased focus on new growth perspectives.
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Sector focus Industrial Retail Tourism TIMES Aviation Automotive High-tech Investment Focus Revenues of EUR 10m – EUR 200m Working capital secured for 6 months Negative EBIT, continuously underperforming Majority/ controlling stakes only Complex carve-out situations Clear operative upside potential
SLIDE 3 Advantages for the Seller
§ The seller of a consolidated group unit or affiliated non- core operation benefits by not having to allocate further management resources to that unit § The management of the selling entity can re-focus on core operations. The portfolio adjustment creates room for further profitable growth of the parent company § Additionally the seller is released from the obligation to balance negative cash flows and the often unpredictable refinancing needs § Callista puts emphasis on a speedy transaction providing the seller with quick relief of the non-core asset and speed up the implementation of vital restructuring measures § If wished, we provide the seller with a post restructuring pre-emption right as well as an earn-out scheme for the case of a sale or the payment of dividends
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The seller can re-focus on profitable core group operations Takeover of reputation risks and financial
Profit participation after successful restructuring and divestment
SLIDE 4 Our Approach
§ Callista seeks to acquire majority stakes in order to take
- ver the control of the entity, thus enabling an efficient and
sustainable turnaround § Analysis and due diligence of the target company as well as the development of a business continuity concept are corner stones of the transaction process § Prior to the closing of the transaction we develop a master plan, which will be aligned with the seller’s interest, containing measures forming of our 100-days-plan § In the first 100 days after closing we concentrate on the carve-out and the immediate implementation of major restructuring measures targeting the streamlining of
- perational and financial structures
§ After the turnaround and restructuring we seek a divestment to a strategic investor adding value to both entities
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Callista puts great emphasis on a speedy transaction, enabling a cost efficient process and speeding up the implementation of vital restructuring measures. This aims at increasing the likelihood of a successful turnaround.
SLIDE 5
Services – Carve-Out
§ IT-Systems: The disentanglement of IT-systems contains the migration of data and applications from existing databases and application landscapes. Typically, solutions for ERP-systems, CRM-systems and productive applications like material management and production planning have to be migrated § Accounting & Controlling: In the case that controlling and accounting services were provided by the group, it is important to immediately create new service centers § General Management: Typically we are building on the experience of the existing management. If necessary, we are able to fill gaps with own personnel or industry experts § Rebranding: As far as brands remain with the seller, we are creating a new brand directly after closing, meeting the new requirements of the carve-out company § Insurances: As insurance is typically provided via group contracts, it has to be analyzed if their conditions can be prolonged or have to be for the new situation, post transaction
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We are specialized on spin-offs of group or holding operations. These carve-out measures are focused on directly following the closing and the initiation of the restructuring process
SLIDE 6
Investment Focus
§ Callista Private Equity focuses on the acquisition of majority stakes in distressed companies, business units or non-core group assets with negative EBIT-margins § Our targets are typically loss making or otherwise distressed entities such as underperforming subsidiaries or non-core group operations of multinationals § Our focus also encompasses complex carve-out situations in which we see a high upside potential when operating on a standalone basis once restructured § We add value by improving operational and financial structures and implementing a consequent focus on sustainable growth of mismanaged companies § We are targeting companies with sales between EUR 10m and EUR 200m whereas our sweet spot lies between EUR 30m and EUR 50m. Our regional focus is Europe § We are largely industry agnostic. However, we exclude outright insolvency cases and do not consider capital or research intensive sectors like real estate, infrastructure, pharmaceuticals and biotech
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SLIDE 7 Recent Transactions
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July 2014 Callista Private Equity GmbH & Co.KG has sold to
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April 2014 Callista Private Equity GmbH & Co.KG acquired from
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Restructuring Advisory Callista Private Equity GmbH & Co.KG for Airwell Group France ¡ ¡ ¡
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April 2014 Callista Private Equity GmbH & Co.KG acquired
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July 2015 Callista Private Equity GmbH & Co.KG acquired from
SLIDE 8 Recent Transactions
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Restructuring Advisory Callista Private Equity GmbH & Co.KG for Airwell Group France ¡ ¡ ¡
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§ Callista advised the Airwell Group France in the divestment process of its subsidiary Pons § Company seeking to divest its France subsidiary WESPER industries located in Pons, France
April 2014 Callista Private Equity GmbH & Co.KG acquired from
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§ MWK Renningen and MWK Schwaebisch Gmuend defined as non-core assets of seller Georgsmarienhuette Holding § MWK Renningen to be restructured after carve-out of group § MWK Schwaebisch Gmuend as supplier company to MWK Renningen § MWK Schwaebisch Gmuend was sold to strategic investor on high multiple
SLIDE 9
Case Study – MWK Schwaebisch Gmuend – The Situation
§ Callista acquired MWK Schwaebisch Gmuend together with MWK Renningen in April 2014. Both companies were formerly owned by GMH Georgsmarienhuette Holding § The aluminum foundry is a leading German specialist in sand casting and produces high quality heat exchangers in small to medium sized lots for the heating industry § At the date of acquisition, MWK Schwaebisch Gmuend was profitable whereas MWK Renningen continuously generated losses § Both units were closely linked to each other and were fully embedded into the group structure of the selling company § Our investment thesis of the transaction was that MWK Schwaebisch Gmuend delivers a turnaround contribution to its sister entity MWK Renningen
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SLIDE 10
Case Study – MWK Schwaebisch Gmuend – Our Approach
§ Major measure post transaction was the carve-out from the selling entity Georgsmarienhuette Holding as well as the separation of its loss-making sister company MWK Renningen § Separation of both entities’ IT-Systems, allocation of the companies customer base as well as re-branding of the companies § MWK Schwaebisch Gmuend has been aligned on a standalone basis to sustainable profitability without any further dependencies on a group structure
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SLIDE 11
Case Study – MWK Schwaebisch Gmuend – Divestment
§ In August 2014, MWK Schwaebisch Gmuend was exited to EUROTECH B.V., a European leader in high precision aluminum sand castings and solutions § The divestment proceeds will finance the restructuring of MWK Schwaebisch Gmuend´s former sister company MWK Renningen § Further strategic collaboration between MWK Schwaebisch Gmuend and MWK Renningen has been agreed upon with the new owner EUROTECH
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SLIDE 12 Our Team
12 Olaf Meier Chief Executive Officer
- Chief Financial Officer of intl. Private Equity firm
- 17 years of relevant experience in management
functions
- Leading role in restructuring team of Software
company
- Lawyer and owner of German law firm focusing on
business law
Marc Zube Chief Operations Officer
- CEO/COO/CIO roles at ITC, SW, Services
companies (>10 y experience in Europe & US)
- 12 years of relevant experience in intl.
management consulting
- Responsible manager for several restructuring and
PMI projects
Christian Muschick Investment Manager
- Deputy Head of Research and COO Silvia Quandt
Research GmbH
- Degrees in Economics and Finance
- Seasoned equity analyst and strategy consultant
with focus on capital markets communications
Martin Scheiblegger Investment Associate
- University Munich, intl. management and law with
focus on M&A
- Experienced Business Analyst
- Financial modeling and business valuation
- Investment research
- Deal structuring
SLIDE 13 Our Team
13 Sonja Dietmaier Office Manager
- Degree in economics
- Profound experiences in real estate lease & asset
management
- Senior experiences in Finance & Administration
- Office Management
Christopher Irion Business Analyst
- Fresenius University of Applied Sciences Munich,
Berkeley College NYC and Pace University NYC (Finance & Leadership)
- Financial modeling and business valuation
- Investment research
- Deal structuring
Stephan Kern Business Analyst
- Munich University of Applied Sciences and Florida
International University (Management Consulting & Finance)
- Financial modeling and business valuation
- Investment research
- Deal structuring
SLIDE 14 Thank you very much for your interest in Callista Private Equity.
Contact information Callista Private Equity GmbH & Co.KG Konrad-Zuse-Platz 8 D-81829 Munich Germany Tel. +49 (0) 89 207042 430 Fax +49 (0) 89 207042 431 Mail info@callista-pe.de Web www.callista-pe.de 14
CONTACT DETAILS
Nov 6th, 2015
