3U HOLDING AG: By pursuing its "MISSION 2026", 3U enters into the next phase of value appreciation

Group's strategic value potential is to rise to between € 510m and € 620m until 2026

Marburg (pta010/13.07.2023/09:45 UTC+2)

By pursuing its "MISSION 2026", 3U HOLDING AG enters into the next phase of significant value appreciation, following on from the sale of weclapp SE

• The 3U Group's strategic value potential is to rise significantly to between €510 million and €620 million over the period up until 2026.
• Successful track record in generating value, with weclapp SE as a recent example, along with a focus on three equally dynamic, high-growth megatrends, form the foundation of future success.
• All segments are contributing to organic and profitable growth.
• Plans include several acquisitions in the SHAC and ITC segments, flanked by ramping up capacities in the renewable energies business.

Marburg, 13 July 2023 – In consultation with the Supervisory Board, and following on from the exceptional success in realising value through the sale of the Group's participating interest in weclapp SE, the Management Board of 3U HOLDING AG (ISIN DE0005167902) has defined the cornerstones of its new, updated value strategy for the years ahead in its MISSION 2026 under the motto of "High Growth Paired With Value". MISSION 2026 has its roots in the 3U Group's meanwhile advanced, sound growth strategy developed many years ago which has been successfully implemented since that time. The Group will therefore continue to be rigorously aligned to dynamic revenue growth, accompanied by sustainable growth in profitability and value. Accordingly, management has realigned and also partly launched growth initiatives in the three segments of SHAC (e-commerce), Renewable Energies and ITC (digitalisation). These initiatives are expected to deliver value potential in a range of between €510 million and €620 million over the period up until the end of 2026. A comprehensive investment programme in a volume of more than €220 million is also part of laying the foundations. This programme provides for company acquisitions as well as the substantial expansion of nominal output in the renewable energies business. To this end, the company has generated a high level of financial resources in the recent past through successful transactions, such as the exceptionally successful sale of its participating investment in weclapp in 2022 with an enterprise value realised of €240 million.

Enhancing value on behalf of the shareholders

As a management and holding company, 3U HOLDING AG views raising the value of its assets in the interest of all stakeholders as its corporate purpose and as an integral part of its mission. The 3U Group focuses on three megatrends in which its companies have already garnered success:

• e-commerce with its focus on climate friendly technologies,
• environmentally compatible energy production from wind power and photovoltaics, as well as
• providing support for small and medium-sized businesses (SMBs) through comprehensive digitalisation.

Strategic alignment with strong growth and value creation in all three segments

3U is aiming to raise its revenues from currently around €30 million to more than €150 million by 2026 in its SHAC segment (Sanitary, Heating and Air Conditioning), and therefore in e-commerce. These endeavours should leverage value potential of €300 million to €350 million.

The foundations underpinning these plans consist of the excellent framework conditions facilitated by the sustainable energy transition prescribed under the law (RE target of 65%), the concurrent growing lack of skilled labour, as well as strong organic growth of the respective companies through expanding the product range and developing new market segments, such as in the prefabricated house industry or in the field of carbon neutral heating, as well as by acquiring profitable companies which round off the existing offering. The significant improvement in earnings before interest, taxes, depreciation and amortisation of up to 8% of revenue (EBITDA margin) is to be achieved by raising efficiency, economies of scale and gradually increasing the share of proprietary brands. The company has earmarked own funds of €80 million to €100 million for financing acquisitions. Management sees above-average value potential in the segment, particularly through an initial public offering or through a partial to full sale of subsidiary Selfio targeted by 2025.

3U intends to take advantage of improving regulatory framework conditions in the Renewable Energies segment in order to significantly expand its portfolio of wind farms. As communicated back in June, undertakings in repowering and in project development already under way are to be connected to the grid as from 2025 depending on progress made in planning, approval and construction. 3U expects the planned trebling of nominal output, from currently 53 MW eventually to between 150 MW and 200 MW to require medium- to long-term financing in a range customary in the market of more than €150 million. Financing is to be secured partly through loans eligible for subsidies on favourable terms, with a contribution made by the company of around 10% to 20%. Value potential of between €150 million and €200 million is to be realised through these measures.

In the ITC segment (Information and Telecommunications Technology), 3U is increasingly positioning itself with its expertise and rigorous customer orientation as a partner specialised in digitalisation for SMBs. Long-term service contracts in this business will lead to a rising proportion of recurring revenue, while stable cash flows will be established in the core business. Organic growth in the Managed Services business is to be accelerated through acquisitions. The EBITDA margin is to be maintained at a sustainably high level of 25% to 30%. Management is aiming to realise value potential worth €60 million to €70 million over the period up until 2026.

Financially sound – and positioning as a dividend stock

"Our MISSION 2026 has its roots in an advanced, sound growth strategy, which has been successfully implemented for years. Given our track record in successfully realising exceptional value growth, experience in our three megatrends, and thanks to a motivated and powerful team, we see huge opportunities for progressing 3U to the next stage in profitability and for leveraging the Group's value potential at a new level," emphasises Uwe Knoke, member of 3U HOLDING AG's Management Board. "We have our own extensive financial resources of around €70 million at our disposal. In addition, we have access to different financing options and, in implementing our medium- to long-term ambitions, can produce sound balance sheet figures. This serves to secure the financing of our investment undertakings planned in a volume of more than €220 million and an equity portion of an estimated > 50 % in total. This financially sound position and progress made in realising our strategic agenda should then also be reflected in an improvement in our valuation ratios," adds Christoph Hellrung, Chief Financial Officer of 3U HOLDING AG. Uwe Knoke comments further, emphasising the following: "We are also striving to enhance value for our shareholders through this ambitious – but realistic – growth programme. We will fundamentally continue to distribute around 50% of the annual result in the form of lucrative dividend which, as illustrated by the successful sale of weclapp, may also be considerably more, as recently evidenced by €3.20 per share and approximately €117.5 million for FY 2022."

You can find a recording, available from 14 July 2023 onwards, of the management presentation in the context of presenting the new MISSION 2026 on 3U's homepage under the Investor Relations heading.

For further information:
Investor Relations
3U HOLDING AG
Tel.: +49 (0)6421 999-1200
Fax: +49 (0)6421 999-1222
email: IR@3U.net

About 3U:
Founded in 1997, 3U HOLDING AG (www.3U.net) has its headquarters in Marburg, Germany. It heads up the 3U Group as the operating management and investment holding company. With the aim of enhancing value for the shareholders, the employees, customers, suppliers and all stakeholders, 3U acquires, operates and sells companies in the three segments of ITC (Information and Telecommunications Technology), Renewable Energies and SHAC (Sanitary, Heating and Air Conditioning). The 3U Group operates successfully and profitably in megatrends through its business models in all three segments and strives to achieve leading positions in the various markets, especially with its e-commerce business model. 3U HOLDING AG shares are traded on XETRA, Tradegate and on German regional stock exchanges (ISIN: DE0005167902; stock symbol: UUU).

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Emitter:	3U HOLDING AG Frauenbergstraße 31-33 35039 Marburg Germany
Contact Person:	Investor Relations
Phone:	+49 6421 999-1200
E-Mail:	IR@3U.net
Website:	www.3u.net
ISIN(s):	DE0005167902 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate