Good afternoon, everyone, and welcome to our conference call of full year 2021. On our call today, our CFO, Mark Friedrich, and our CIO, Johannes Laumann, will present you the results and the most relevant events of the financial year 2021. After the presentation, we are happy to answer your questions. The presentation shown is available on our website after the call. Before we start, I would like to remind you that this presentation contains forward-looking statements, including projections, which may not develop as we currently expect. I therefore kindly ask you to take note of the precautionary warning about forward-looking statements that is included in the materials on our website. Now let me hand over to Johannes Laumann.
Thank you very much, and a very warm welcome to our earnings call here, in April 2022. Roughly one year ago, I did ask you in our annual shareholder meeting to fasten your seatbelt because we are moving extremely fast towards growth and profitability. Today, with the publishing of the numbers 2021, I think we can confirm we have delivered what we promised. I will take you on a quick tour through the key highlights, remind you again on our business model, which is the foundation of all the results you see before Mark, then will catch up with the financials. Before we go to the key highlights of 2021, I would like to share my key highlight of this year. My key highlight definitely is the underlying fact of the performance.
The numbers we have delivered, the growth we have delivered, the profitability we have delivered, and the promise we kept on the guidance. The underlying, that's our people. The growth of our people and the delivery of our people, the performance and loyalty of our people. I would like to use, as an opener of this presentation, also a big thank you to the entire Mutares team, the entire Mutares family, and congrats to a fantastic and brilliant year, 2021. Our vision as Mutares was clearly set, to be a leading company, a leading firm in the special situations in Europe.
With the numbers presented today of group revenues of EUR 2.5 billion and a holding net income of EUR 50.7, which is clearly in the range what we have guided and on the group revenue slightly above, we see ourselves exactly good on track on the numbers we have promised for financial year 2023, which was given in our guidance in 2020. Just to remind you, mid of 2020, we gave the guidance. In 2023, we want to go to EUR 5.1 billion, which is 2% of the target group revenues. Despite the fact of second waves of COVID, despite the fact of a chip crisis in the automotive world, especially, and despite the fact of the war in Ukraine, we have delivered.
That clearly shows that the business model of Mutares is robust and we can keep our promises. Details of 2021, and I would separate it in three sections. The first section is transactions. Clearly, if you see 14 transactions closed, six exits closed, two transactions signed. We are a very, very strong player when it comes to how active our special situation private equity firms in Europe. We have here clearly a leading role. We have extended our footprint with four opening offices in Europe, which was Madrid, which was Stockholm, which was Vienna, and which was Amsterdam, where we clearly already see the first deals coming in, especially in the Nordics.
as we speak, also my Spanish team is negotiating on the final finish line of an SPA, which we will announce shortly. You clearly see that the strategy of expanding as the number two of the highlights really worked out. Then number three, the capital market part, where we have placed a capital increase of EUR 100 million end of last year, where the management and the supervisory board participates with more than EUR 20 million. We have made an up listing in the regulated market to increase transparency for shareholders, stakeholders, to increase the transparency of the numbers of what we do, how we deliver, and how we keep our promises. There's nothing to hide. It's just relax and enjoy.
When we deep dive a little bit into the transactions, which was clearly an outstanding year of the entire Mutares firm, we have delivered exits. All the exits together kept the promise of a return on invested capital of 7x-10x. On average, we were above 10x. Let me point out two here, especially on this. STS, which was conducted in the first half of the year, where we sold the majority stake of the STS Group to Adler Pelzer Group.
Towards the end of the year where the closing happened in 2022, but the notary and the signing happened in 2021, which was the exit of BEXity with a very fast turnaround, where the CEO, Christian Klingler, and his team did an outstandingly good job in making this a wonderful case for Mutares. On the other side, the acquisition side, the buy side, we have invested more than EUR 50 million in the buy side. We have conducted 14 transactions in a closing. Let me pick out, let's say three, where I do see the major investments or we have done the major investments. The major investments does not necessarily mean a purchase price. It's more what we always said, it's the skin in the game.
The skin in the game on the Lapeyre transaction, which and I only can repeat myself, which I believe is maybe the deal of my lifetime. Where we injected EUR 20 million in the company as skin in the game. Purchase price, it was a euro, but we had to inject skin in the game due to the seller's request. The same happened on LMS, which was bought by Magna, also their skin in the game. Last but not least, La Rochette, which is a cardboard manufacturer, we have to inject the money at closing to have skin in the game, which we bought in France. The investment in 2021 was a little bit above EUR 50 million in the company. We have exited the companies with our target return of 7x-10x.
I think we can summarize here on the transaction side in 2021, where I'm very proud of, we have delivered. Let me remind you and guide you a little bit through our business model, which is the underlying success factor of all of this. The business model is grounded on four pillars. One is the European focus, where we open new offices, where we have a footprint, which is unique in the turnaround market. Then we have the three segments of automotive, of engineering technology and of goods and services, where we clearly focus on the value chain, where we clearly focus with our operational forces to make the difference. The company size we're looking to at the platform investments are in the range of EUR 100 million-EUR 500 million in turnover.
This is our sweet spot. This is where we believe we can bring majority value to the companies. The consideration of turnaround heroes. With the help of a very famous football coach who said once, "We are not arrogant to say we are the best, but we have a certain belief that there is no better one." The combination of those four pillars, I think, are the drivers of the business model and is the foundation of the business model and at the end, the drivers of success. When you see our development, I think numbers prove that. We started in 2019 with EUR 1 billion. We are now at EUR 2.5 billion.
I give you an outlook later on in 2022, but clearly we are on the right focus, on the right track to achieve our target in 2023 of EUR 5.1 billion. However, for me, that's just the beginning. Slight adjustment of the football coach message was, "I haven't finished yet." I believe this is just the start of a very, very nice and long journey we have together. I'm very proud of what we have achieved in 2021. If you see the targets and if you see what's happening in 2022, and I come to that to the outlook, you will see it's just the beginning. How do we make decisions and earn money? This is just a quick reminder.
When Robin Laik and myself, we consider an acquisition, we consider an exit, we consider an investment. We always ask ourselves, "Do we get back the money 7x-10x ?" This is our target. Get in return on invested capital of 7x-10x . This is the ultimate judgment on do we spend money? Do we spend, like I showed you before, do we spend this EUR 50 million in the skin in the game, in the portfolio? The answer is, if yes, then we also believe we get the money back 7x-10x . If the answer is no, we don't invest. If the answer is yes, we take the acquisition, then we believe the money comes back. The money comes back through the phases of the companies, but also in different lines and different streams.
In the realignment phase, which is the restructuring phase, the early phase of we own the business, the money comes back to management and consultancies. This is the strong first return on investment. In the optimization, when the company is breakeven or has stabilized, is stand-alone, then the money comes back through dividends in the portfolio. Those are stable incomes. Then the last one in the harvesting is, of course, the money comes back when we exit the company and receive exit proceeds.
All of this together is targeting the 1.8%-2.2% of group revenues, which is the profit, which is the EUR 50 million this year, which was the EUR 33 million in 2020, which was the EUR 22 million in 2019, and which will be the EUR 100 million in 2023. A quick look at the portfolio because that's the ultimate outcome and the companies supporting the business model and living the business model. We hold 25 companies in the portfolio and we are operating, and you see the three sections are not equal exactly when it comes to the number of portfolios, but when it comes to the revenue, we are in a good balance.
Why is that good balance in our view necessary and also needed? It's about the risk of diversification. We want to have the three segments because we have with automotive an early cycle in the economical trend. We have a late cycle in engineering technology, long-term project business, et cetera. We have goods and services, which is basically a non-cyclic business if you speak about windows and doors, if you speak about logistics, if you speak about lawnmowers and so on and so on. The risk diversification is one of the main drivers of the segmentation, of the segmentation we have.
Let me point out three or four companies where I do see in 2022 significant potential for add-on acquisition, significant potential to follow our buy and build strategy, when it comes to the growth of Mutares, but also then ultimately the growth of the individual company. When we speak about the automotive part here on LMS and KICO & ISH, those two are clearly the ones which we see also in the pipeline that we have good opportunities to buy and build on those. LMS, plastic injection molding, exterior parts. We see a lot of opportunities there to grow in geographical markets, but also grow into product markets. KICO & ISH, we see a lot of potential to grow geographically, but also to grow from a total setup of the offer and from a customer base perspective.
Those two cases are very, very strong when it comes to the buy and build in 2022. This is at least what I expect. Then the one in the engineering technology I want to highlight, and of course, this is just a snapshot and a pick out of one because I don't want to spend the entire time here, is Balcke-Dürr. Balcke-Dürr, we sold the Wärmetauscher business. We sold the coal business successfully, and now we're reshaping the organization. We're reshaping the business model. We're reshaping the offering. We have already done an add-on acquisition from Toshiba, which was closed in 2021, and we continue this path of setting up the new way of Balcke-Dürr. Last but not least, Frigoscandia, which was acquired end of last year.
Cooling business, cooling logistics business in the Nordics. Here we clearly see a lot of potential in a market which is starting to consolidate that we can be one of the beneficiaries to grow Frigoscandia, which was owned by Posten Norge. We are very, very confident that we can reshape this company to a very nice and profitable case. This was a quick snapshot in the portfolio and where do I see buy and build strategies in 2022. Mark will go a little bit more in detail on the financial sections, and then we hear each other back on the outlook.
Thank you, Johannes. Today, in the financial section, we want to focus on the key financial data of the group and the holding and the relationship between the two. Let me start with revenues, and we heard already a lot from Johannes that we kept the pace. In 2020, we increased the group revenues by 50% or more than 50%. In 2021, we did it again. We see here also looking ahead that we want to keep that kind of pace. In the group, we always publish the EBITDA and the adjusted EBITDA. Here we see over the last three years, the development which pretty much describe very well our business model. We see a substantial increase in the EBITDA, which pretty much reflects our M&A activity and also the magnitude of our M&A activity.
You see it here in 2021, where we published already in 2021 that we did the biggest transaction with Lapeyre, but also with LMS, which was quite a big one. This ended up in an EBITDA of more than EUR 500 million, more than 3x compared to 2020. On the other hand, the adjusted EBITDA, which is for us a proxy of the operational performance, so leaving aside restructuring one-off expenses and the M&A activity in our group financials, is declining. It's declining in pretty much as a picture for us that we are on the right track. We acquire loss-making entities, and therefore they contribute negatively in the beginning. Normally, the bigger the entities that we acquire, the higher the contribution, the negative contribution and adjusted EBITDA.
We foresee also that this is going to be increasing in terms of becoming better because of the size, but was becoming more negative due to the M&A activities in 2020 and 2021. The Mutares Holding, the listed entity, pretty much develops along with the group. The revenues which are comprising our consulting revenues, which are with our own team and something we only provide to our own portfolio, was pretty much in line with the group revenues, which increased also 50%. We see in the Mutares Holding revenues that they increased on a 50% level in the last three years. The portfolio income that we introduced in 2021 due in the capital increase, combines the revenues and the dividends that we derive from our portfolio.
We introduced this figure because we strongly believe that we can pretty much control this figure because we offer our services only to our portfolio. As long as we have a growing portfolio or a big portfolio, we are always able to deliver consulting services to our portfolio companies. Due to the experiences from the past, we also kind of observe that we are always able to derive dividends of approximately EUR 15 million from our portfolio. The net income of the group ended up with more than EUR 50 million.
At the very bottom, we now included the relationship again, also for the most recent years here as part of the transparency that you see that the net income of the holding in relation to group revenues is pretty much in the range that we communicated of 1.8%-2.2% at all times or at years 2019, 2020, and 2021. Looking ahead, I want to start again with the group revenues. The portfolio as of the end of 2021 already contributes approximately EUR 3.5 billion in sales in terms of a twelve-month run rate to the year 2022. Already excluding the BEXity Group, which we divested in February.
Then we had to do some assumptions regarding our M&A activities on the buy side and on the exit side, and said, "Let's take another EUR 500 million on a net basis in terms of exits and acquisitions throughout the year," and that brings us to at least EUR 4 billion in sales that we want to do in 2021. Based on the EUR 4 billion, we come up again with, especially the net income of the holding, where we say, we want to stick to the range that we communicated of 1.8%-2.2%, and foresee that also revenues of the holding will increase along with the Mutares Group sales.
On the next couple of pages, I will go through the segments of the Mutares Group, and we'll add a couple of comments for some entities and their developments. Starting with the automotive and mobility segment, we see in the revenues, and especially also in the EBITDA, pretty much the development that we saw for the group. Both KPIs increased due to our M&A activity, especially LMS and ISH. On the other hand, we also see that the adjusted EBITDA decreased here substantially. Here, just a couple of words, because this is an industry which Johannes mentioned as early cycle industry. In the segment, we saw quite a good development at the beginning of 2021, pretty much a recovery, especially compared to the first half of 2020, which was the COVID year.
We faced some headwinds in the supply chain, especially the semiconductor availability was heavily affecting the portfolio companies. In the end, especially in the last quarter, also the increase in raw material prices and the electricity. Nevertheless, despite these challenges, we strongly believed at all times that we want to invest in this segment. Because we strongly believe that the environment, the current environment that we still see in this segment, provides for a lot of opportunities and that we, with our team, were able to gain some reasonable experience how to handle the risk and the challenges that we have had in the year 2021 and also in 2020 in this segment.
Coming to the next segment, the Engineering and Technology, where we also saw a substantial increase in revenues due to the M&A activities, mostly as the full year effects from the acquisition of Lacroix, and also for the full year effect of Royal de Boer, but also with the new acquisitions that we did, and here, especially the La Rochette Group, Clecim, and also Royal de Boer. The EBITDA was influenced by, again, the acquisitions, and here we also see the setback in the adjusted EBITDA, despite the very pleasant development, especially of the Nordic part of the Donges Group, but also the Lacroix + Kress Group. On the other hand, we had some headwinds in the Balcke-Dürr Group and in the Gemini Rail Group and ADComms Group, where we really struggled with the market and with the headwind from the market.
We're not able to fulfill our growth targets here. We adjusted here our approach and look ahead in 2021 to more pleasant results for us. I want to close the segment here with some words regarding especially Royal de Boer, JAPY, and Clecim, and also La Rochette. We were able here to implement a restructuring plan in a decent time also for the Mutares criteria and were able to already execute here. Looking ahead here in 2021, we strongly believe that we have here in the engineering and technology segment a very promising distribution along the life cycle.
Coming to the last segment, the goods and services, where we see again the increase in revenues more than double compared to 2020, where we had most of the transactions, so seven acquisitions here in 2021. The EBITDA here, you see the EUR 450 million, was mainly influenced by the acquisition of Lapeyre, which is for us a transaction which we have never done before and where we see that we have, from an M&A perspective, done a great job because somebody was willing to hand over net assets of more than the EUR 400 million that you see here. On the other hand, here, this is the only segment where we were able to improve the adjusted EBITDA compared to 2020, despite the number of acquisitions that we did.
Let me here pick just a couple of few that are influencing, mainly influencing the adjusted EBITDA compared to 2020. First one is the BEXity, which was really a nice turnaround within a reasonable time and was contributing very positively to the adjusted EBITDA in 2021. Same goes pretty much for the Terranor Group, which also positively contributed to the adjusted EBITDA and was executing a very fast turnaround. On the other hand, also, a company like SABO was contributing much less negative compared to 2021, and therefore was able to contribute to the improvement that you see here. Last but not least, again, Lapeyre. Lapeyre had some really support from the market after the acquisition with strong sales and also to a surprise for us, was less negative than we anticipated in the transaction.
Therefore, the figure was way better than we actually expected, and the restructuring plan is well on track that we see here in Lapeyre, and we are looking forward to the contributions in 2022. I want to finish my part with the life cycle. You know that our business model is based on acquiring loss-making companies. We invest with our team to turn around the company and want to divest within three to five years once the companies are profitable. This chart pretty much shows everything that we have done in the last two years. We have today 11 companies in the realignment phase. This pretty much reflects our strong activity in 2021.
Here on the very right side, we included now the financial year 2020 figures, which do not include the same companies. The figures that we showed in 2020 show that we have done a great job in M&A because we were able to acquire a lot of companies. We pretty much 10x increased the sales level and 10x increased the net assets that we have in the group now. The adjusted EBITDA was decreasing only slightly. Especially if we put the relationship here in the picture, you see that actually the adjusted EBITDA -45 million in relation to the sales level is way better than in 2020. Going one step up to the optimization phase.
We have here nine companies in the group which mostly were acquired in 2020. Here also we see that we were able to increase pretty much all figures that you see on the right side. We strongly believe that we have done a great job throughout 2021. We will see in 2022 when we see each other back for the Q1 that we will put some companies to the final stage, the harvesting stage. We have included here three companies only, with one of them, BEXity, that we signed, the exit that we signed in December and closed in February. Only two companies left.
I personally believe that we, especially with the Donges Group and the opportunities that we have, that there's one company in there that provides a lot of fantasy and also opportunity for 2022. Therefore, you see here the comparison with 2020, that we have a slight decrease here in terms of sales, but an increase in profitability. We had in this segment also the STS Group, so pretty much all companies that we divested also in 2021. Looking ahead also with this, we strongly believe that we want to keep on filling our portfolio and moving up the life cycle and the portfolio companies along the way. We actually want to proceed them pretty much in a curve upwards and with the target to divest within three to five years. With that, hand over back to you, Johannes.
Thank you, Mark. I would like to give you a quick outlook on two things. First of all on the transactions and then on the results 2022. When we look at the transactions on buy side and sell side, we have at the moment the biggest pipeline ever. Basically, my M&A team works under ultimate pressure at the moment in each of the countries to transact and handle this pipeline, despite any COVID infections, et cetera. A huge pressure here, because our pipeline is the biggest one we ever had, and we are really hot to transact. I used to say to the team, and it's almost a scandal, but under heat and pressure, you will make diamonds.
I think the pipeline we have at the moment, there are a lot of diamonds, and we just have to prep them. EUR 1.7 billion is in the hot list. The hot list is something where we are under SPA negotiations, under contract negotiations, and I'm very confident that this week we will transact, and maybe not only once. Then, as always, we want to have one transaction per month on average. We want to transact 12 times. We have already acquired EUR 0.7 billion, EUR 700 million roughly, in 2022. Those include three transactions, whereof two were announced, one is not announced yet, but will follow in Q2, the announcement of the process. Seven hundred million are already in the pocket for 2022 when it comes to the turnover, three transactions.
I'm very confident that in 2022 we will achieve the 12 transactions once a month. I would be extremely disappointed if that target is missed. Then on the exit side, we currently work on four exits in different stages. One, more towards the end, so I'm very sure we will transact in Q2 on the exit side at least once, and then other exits which have just started. We are very, very confident, and we get very good signals from the market that we have also here a good exit pipeline to achieve lucrative exits in 2022 in order to be again, one of the most active private equity investors in special situations in Europe and continue to write our story and at the end, deliver what we promised.
Last but not least, the outlook on the financials. I know that sometimes I'm loud, sometimes maybe a bit too loud, but look at this slide. I think numbers and actions speak louder than words. The guidance 2022, we want to have a minimum of EUR 4 billion turnover, company in the range, the net holding income, the net holding profit, which is distributable income, EUR 72 million-EUR 88 million. We have said we want to go to Helsinki. The office is opened, already now. We have said we want to go to Eastern Europe. That's still the plan. Finally, we consider to pilot our business model towards more towards the end of the year in America. This is the promise for 2022.
Before I want to hand back to the moderator, I would renew my recommendation of remaining your seatbelts fastened because the numbers you see and the pipeline you see and the plans we have and the promises we give you are there. It will go very, very fast. Keep the seatbelts fastened. I promise we will also deliver in 2022. Thank you for participating today. Thank you again to the entire Mutares team for a brilliant 2021. We as a board are proud to be part and lead this journey with all of you guys, and 2022 will be even better, and we will deliver again. Thank you very much to all of you, and I would like to hand back to the moderator now for potential questions and answers.
Thank you. We will now begin the question and answer session. If you have a question for our speakers, please dial zero and one on your telephone keypad now to enter the queue. Once your name has been announced, you can ask a question. If you find your question has answered before it's your turn to speak, you can dial zero and two to cancel your question. If you're using speaker equipment today, please lift the handset before making your selection. One moment, please, for the first question. We have a first question. It's from Mr. Tom Mills of Jefferies. The line is now open for you.
Good afternoon, guys. Thanks very much for the presentation and congratulations on the results. I just had a question about the pipeline that you're alluding to. Clearly it sounds very attractive, and you're saying it's a record number of opportunities there. Could you maybe just give us a flavor for what kinds of opportunities those might be? Obviously, I appreciate you can't go into too much detail. Have some of those come about perhaps because of the more difficult market conditions in 1Q? Just anything more you can perhaps give us about that and how many you might hope to be able to execute on will be very helpful. Thank you.
Sure. I think. When you look at the pipeline and, let's say when you look especially at the hot list projects where we're already in negotiations or let's say we have taken the last curve and we're just, you know, on the finish line there. The majority of these transactions comes in the first two segments we have, Automotive and Engineering and Technology. Not so much on the Goods and Services side. Those two segments are predominantly the ones where we see the larger part of the pipeline. Why is that? I think in COVID, and that's my personal interpretation.
In COVID, corporates have, you know, considered back to core, considered back to what are our strengths, and we clearly see the divestment of the non-core businesses on large corporates in those two segments. That's number one. I think the situation of COVID kind of not solved, chip crisis takes potentially longer than expected. Plus now the impact of the war in Ukraine has put another pressure of speed into transactions. You know, what we see is that the timeline of the transaction gets shortened. While in the past transaction, you know, we're dragging for certain amount of time. The corporates are now pushing to have it as short as possible, as condensed as possible and as quick as possible.
That's why I think we currently have a significant workload on the M&A, and I'm super happy that the entire team works together here in one direction and, you know. We'll fight with each other for all the deals and we will win all these deals, the one we want. Pipeline is amazing and we will get our share of this for sure.
Thank you.
Thank you.
Thank you, Johannes. That's very helpful. Could I perhaps just ask one follow-up, which is the complexity of some of the deals that you're most confident perhaps in executing on, similar to what you've kind of seen in the past, or is there perhaps a higher degree of complexity with some of these assets, that you could look to pick up?
The honest personal answer is the complexity comes with the seller. You can have a complex seller for. You can have easy sellers. I think the complexity of a turnaround, of course, the larger the size, of course, the more locations are included, of course, the more under pressure the business is. That drives the complexity. But that's our day-to-day business. That's our bread and butter. That's our USP, where we are good at. When it comes to transactions, you have straightforward transactions with large corporates, you have more difficult transactions where also there is a little bit of political influence. You can't say that, let's say, in general.
Yes, we do have in this pipeline transactions where there is, for example, political influence, which is tough and complex, and everybody wants to have a say. Then you have transactions in there with large corporates where they have made the decision, they have made up their mind, they have a clear idea how much they are willing to inject in the company, and that's then the straightforward transactions we are working on. You have both types actually, but it pretty much depends on the seller and not on the environment of today.
That's very clear. Thank you. Full spectrum then. That's great. Thanks.
The next question is by Alina Köhler of HIED. The line is now open for you.
Hi, good afternoon. I have two questions. Could you share your assumptions on exits that you have included in the holding net income? What's the exit gains that you have factored in there? The second question is: do you think that the war will impact your ability to go through the exits that you have mentioned early on?
Let me start with the second question of the war, and then the exit part I will hand to Mark. I think it's very difficult to judge at the moment the impact of the war going into the future. What we see as Mutares is that we have very little exposure on the top line, as none of our portfolio companies is heavily exposed to Russia or Ukraine. So we don't have an impact on the top line of our portfolios. However, what we see is that the upward pressure on raw material prices is rising here, and this is something we have to tackle together with all our stakeholders, if it's the customers, if it's the suppliers, if it's the employees.
There we see a pressure on the raw material prices, not so much on the top line here. When it comes to the impact on 2022 and the exits, we don't see an impact there in the sense that we are not confident in the numbers we promise or in the exits we want to deliver. I think it's clear that the forecast we give and the promise we give takes into account this potential downside of the war also in 2022. I think you can clearly see that we believe in what we have said. I've just invested today myself into the share again. We are confident that the war will not impact our promises for 2022, and the war will not impact our exits. However, on a personal note, yeah, I hope, wish, and pray every day this disaster ends, the sooner, the better.
For the question regarding the exit proceeds, there's some interaction between the exit proceeds and the dividends. If we are able to divest the company, we obviously are not able to generate some dividends. That's why we are always a bit cautious regarding the guidance regarding exit proceeds. It's just a rough figure. It's approximately 50% we have included in terms of the net holding income that we want to achieve for 2022 that should be derived from exits.
Okay, that's very helpful. Thank you.
Next question is by Zafer Rüzgar of Pareto Securities. The line is now open for you.
Yes. Hello, gentlemen. Thank you for taking my questions. I have two questions. The first one is on your acquisition pipeline and the related revenue size of EUR 11 billion. This is significantly higher compared to the EUR 9 billion which you had mentioned at your capital markets in September last year. The deviation of EUR 2 billion, is this mainly due to the size of the targets or do you now have just a higher number of potential targets? Then also related here, the potential contribution of Mutares to these targets. Do you have now a higher capital requirement when acquiring these targets compared to the past. Probably do you have a number for us what will be your target to invest as skin in the game in these companies?
Yeah. Indeed, the pipeline has risen and when we consider it's two factors mainly. Of course, you know, there are certain deviations in phasing of transactions. Two main thing we see in the pipeline is, number one, a significant increase in the auto potential, the auto opportunity. More automotive suppliers, first and second tier, are divesting companies. The part of auto has increased compared to, let's say, six months ago. Secondly, our entire Benelux market has developed in the last six months. You know, we just opened Amsterdam towards the end of last year. We had started September, October-ish, and whereas we had no projects when we met on the capital markets day.
Now in the last six months, Benelux has developed, and actually, than EUR 0.5 billion of this EUR 11.78 million of this EUR 11 billion comes purely from Benelux, which is a market we have not encountered in September, October. Those were the two main drivers for this. When I look at the pipeline, yes, there are significant deals, and yes, we already know for some of them that there is skin in the game expected. As a matter of fact that we will, you know, plan to outgrow this year and this year we have invested EUR 50 million. My best guesstimate is that in the injection into companies when it comes to skin in the game will be somewhere between EUR 50 million and EUR 100 million for this year.
Okay. Thank you. The second one will be a more follow-up on to a previous question regarding your net income target and to get a better feeling of the breakdown of your net income on holding level. I mean, there's obviously a recurring more predictable part in this earnings KPI in comparison to your income on consolidated level. Can you tell us in addition to the 50% of potential exit gains, how much of the targeted range of EUR 72 million-EUR 88 million is already booked through consulting fees, et cetera? The second part here, your 2021 net income that I guess an internal earnings component. Is your target for 2020 entirely related to external exits, or are there also some potential internal components? Thank you very much.
Again, the first question, the contribution of the consulting to the target. When you look at the figures that we had for 2019 until 2021, you pretty much see that the holding revenues are approximately 2% of group revenues. The higher the group revenues, the higher the complexity and the higher the numbers, therefore, this goes a bit along, and we saw it in the last years. For 2022, we assume that the consulting revenues of the holding will increase to something around EUR 75 million. So that's again, a 50% increase, which should then contribute also to the net result. Second part of the question is a no. We included only in the planning external exit gains.
Okay. Thank you very much.
Thank you.
Thank you very much.
The next question is by Stefan Augustin, Warburg Research. The line is now open for you.
Yes. Hello. Thank you very much. Also, I mean, it's probably coming back to a couple of things here. So I understand that the pipeline increases from the additional number of offices. Could you share with us, I mean, you probably have expanded a lot in Europe right now, so this is a bit of a kind of a consolidation again, if you laid out that we have the first step probably to the U.S.. But how much more consultants do you actually plan to put in the offices around 2022? Can we also have the thinking that this will actually finally relate to a further increase in deal pipeline because, let's say, more people get a little more deals?
When we expand into a market, and Benelux was the last example, and Vienna is also a very, very good example where we try to tackle the Eastern European part a little bit as well with Katarina in Vienna and Julian in Amsterdam. I believe our world, our restructuring world, our turnaround world, in order to get deals, it's 80%, it's a local transaction. You need to be local. That means if you're not local, you don't get a deal. If you're local, you see the deal. As I said, EUR 700 million-EUR 800 million of the pipeline is Benelux only because we have now two people sitting there, you know, talking to the banks, talking to advisors, talking to corporates, and coming up with a pipeline.
To answer the question, yes, if you're local and if you put people in a country, automatically your pipeline will increase because you see more and more transactions. This we have seen in Spain, where we have made one deal, and hopefully this week will be the second one. When we have seen that in Stockholm, we have seen that in Vienna, we have seen that in Amsterdam. It's a clear yes. If you expand your footprint, you get more deals visible, and then ultimately, you also transact more. That's number one.
Number two, the more that you transact, the more you have, the more you also need local people in order to, you know, do the turnaround, go in operationally, solve it together with the management, which ultimately leads to higher consulting income, which leads to a higher profitability on holding level. The growth parts of opening up countries and the cross paths of putting M&A and transactions there clearly has the ultimate effect of a positive net profit impact on the whole.
Mm-hmm. What will be the planned number of consultants in 2022 then?
We have a plan this year to expand by around 40-50 people, the consulting practice.
All right. Coming back a little bit on Russia. You said that your exposure to, let's say, certain countries is comparatively low. Still, the question is there, let's say, somewhere the threat of an asset write-down that could have an impact, or is it all negligible or put into insurance?
We don't hold any assets in Russia. It's only a customer relationship and the major one is with Balcke-Dürr, where there's an order from a joint venture where Rosneft is included. But we don't hold in any of our portfolios assets in Russia, so there's no write-down. We have one factory in the Ukraine, in the western part of Ukraine for Plati. Our people are safe there at the moment. We are in continuous contact with them. We try to do our best together with our customers to keep production up and running and serve our customers there.
There is also it goes the opposite side because they're supportive and we're planning to increase even the capacity in this western part of the Ukraine at the moment. There is also no risk of a write-off on assets on this one. Besides the factory of Plati in Ukraine, there are no assets of any portfolio in Russia or Ukraine.
All right. Thank you very much for this clarification. A little bit commenting on the possible exits. I mean, I think you were at least hinting a little bit the idea to use the capital market, maybe in 2022. Now the situation is a bit more difficult. Still you plan for the exits, so is there a thinking to say if this one channel does not work, I will still make the exit, but probably in a different channel?
I mean, we are open and do whatever is best. However, I still hold to my plan and believe that what I have promised, I will also deliver.
All right. Thank you very much.
Can't say more than this. Plan is still live and valid, and we will execute.
Yeah. Thank you.
As a reminder, if you want to ask a question, please press zero and one. There are no further questions, and so I hand back to you.
Yeah. Thank you very much for your questions. We hope we could answer them to your satisfaction. Again, thanks a lot for being with us in 2021. I think we delivered brilliantly. The outlook, despite the global condition is very promising and very good and you have our word that we will do the utmost with our team, with the entire Mutares family, to deliver what we have showed you today. Thank you very much. See us back on the Q1 and have a safe day, have a good day and if we don't hear and see each other, Happy Easter. Thank you very much. Bye-bye.