Original-Research: DO & CO AG (von NuWays AG): BUY

    ^
Original-Research: DO & CO AG - from NuWays AG

06.10.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

Classification of NuWays AG to DO & CO AG

     Company Name:                DO & CO AG
     ISIN:                        AT0000818802

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        06.10.2025
     Target price:                EUR 266.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Henry Wendisch

Conference Feedback: Rare value proposition for good money

Last week, we hosted DOC at our European MidCap Event in Paris. Here are our
key takeaways from the discussions with investors:

Unique business model in high demand. DOC's business models is based on the
principles of continuous innovation and being able to provide an excellent
customer experience, whose foundation lies in the strong roots of
perfectionistic restaurant-, hotel- and catering offering. In doing so,
international event organizers as well as Airlines use DOC to differentiate
from its competitors as well as increase their own customer satisfaction.
This gives DOC the luxury to choose their customers and not vice versa,
which is also showing in superb contract renewal rate of 95% as well as 5-10
new customer wins per quarter (largely smaller airlines at already present
hubs).

Strong partnerships secure sales visibility. As a consequence of the above
mentioned drivers, DOC counts the most prestigious partners. Just to name a
few, DOC is catering for Formula 1 races since 1992, for UEFA since 2002,
Turkish Airlines since 2002, Austrian Airlines since 2000 and FC Bayern /
Allianz Arena Munich since 2014. All in all, this leads to currently 70% of
group sales to be contract based until 2030, providing excellent sales
visibility.

Margin protected business. DOC's business model is extremely margin
protective due to a large share of contract based revenues. More
specifically, the Airline Catering (AC) segment currently operates with 1/3
of sales using open-book accounting on which a fixed margin is agreed upon.
Of the remaining 2/3 of AC sales, 1/3 of sales are generated from a fixed
contracted handling fee to cover the fixed costs of a local kitchen and 2/3
are variable sales, i.e. stemming from the number of meals cooked. In
addition, all contracts have minimum wage and raw material inflation
clauses, allowing DOC to pass on costs that are not in their control. All
this leads to a lean, breathable cost structure with c. 80% of sales being
variable costs (40% COGS, 40% personnel costs).

Continuously rising margins. As a direct result of ongoing customer wins,
operating leverage is seen to kick in. Especially the smaller customer wins,
increase the utilization rate (currently 70-80%) of the 33 kitchen
worldwide. For instance, cooking 120 meals vs. 100 meals usually incurs the
same fixed costs (same chef, same kitchen). This effect was strongly visible
in Q1, which showed a 26% incremental EBIT margin. Moreover, DOC has reached
better negotiating power and scale effects, further supporting margin growth
(10% EBIT margin target).

Dividend payout ratio targeted at 25% implies strong dividend growth. In
FY'24/25, DOC paid out a EUR 2 DPS (23% payout ratio). During discussion, DOC
highlighted to target a 25% payout ratio going forward, which would lead to
a EUR 2.78 DPS for FY'25/26e, according to our estimates. This would imply a
39% yoy DPS growth, but also a mere 1.3% dividend yield.

All in all, the management discussions confirmed our positive view on the
stock. Therefore, we reiterate our BUY recommendation with an unchanged PT
of EUR 266, based on DCF.



You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=88618cfcfb7626df227927dbfcfe1445
For additional information visit our website:
https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

---------------------------------------------------------------------------

2208284 06.10.2025 CET/CEST

°