Slide 1: Presentation of the results for the first quarter of 2018
Bergisch Gladbach, PRESENTATION OF THE RESULTS pine FOR THE FIRST QUARTER OF 2018
Slide 2: Agenda
UU FWwWn = INDUS AT A GLANCE STRATEGIC REPORT FOR Qi 2018 FINANCIAL DEVELOPMENT IN Qi 2018 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS]
Slide 3: INDUS business model: We are passionate about SMEs
INDUS business model We are passionate about SMEs * As of 1 October 2017, the Group has 45 instead of 46 investments. This is the result of the integration of the FICHTHORN investment in the SELZER Group. 3
Slide 4: Broad portfolio as a core strategic element
INDUS business model Broad portfolio as a core strategic element 000 000 000111 11 9 11 5 9 4
Slide 5: Long-term oriented company model
INDUS business model Long-term oriented company model Short to medium-term Long-term investments return-driven investments without exit orientation Large Caps: INDUS Holding Apax, Blackstone, KKR BUY Aalberts Mid Caps: BUY and Industries DBAG, 3i, Odewald and HOLD Gesco Small Caps: Greiffenberger MB
Slide 6: Investment criteria of INDUS Holding
INDUS business model Investment criteria of INDUS Holding Broadly diversified Niche customer position Double digit base Own operating industrial profit margin added value Growth per- Equity rate spectives, >30% also interna- tionally EBIT Cash flow EUR 2-10 orientation million Sales of Low level/ EU
Slide 7: External growth in our industries of the future
INDUS business model External growth in our industries of the future * Two examples for growth acquisitions in FY 2017. 7
Slide 8: Accompanying SME hidden champions in the long term
INDUS business model Accompanying SME hidden champions in the long term Property, plant Know-how and equipment Investments Strategic sparring Development Networking Innovation Knowledge Acquisitions transfer Financing tasks in Accounting, taxation and shareholder management law at the holding level
Slide 9: Agenda
oO FWwWn = INDUS AT A GLANCE STRATEGIC REPORT FOR Q1 2018 FINANCIAL DEVELOPMENT IN Qi 2018 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS]
Slide 10: Strategic growth with COMPASS 2020
Strategic report Strategic growth with COMPASS 2020 10
Slide 11: Taking stock of Q1 2018
Strategic report Taking stock of Q1 2018 AURORA: EE Electronic Equiment, Weert (NL) OFA: Trading company for medical aids (DE) Increased drawdown of development bank’s offer Currently 15 development bank projects Thereof 3 new projects in Q1 2018 Intensification of the support offered to the portfol
Slide 12: Portfolio further strengthened in 2018
Strategic report – Investments Portfolio further strengthened in 2018 Strengthening of portfolio TR Metalltechnik OFA acquires WIESAUPLAST- trading PMC de México* company for medical aids Growth acquisitions * Acquisition of the remaining shares (55%) 12
Slide 13: Focus remains on innovation in Q1 2018
Strategic report – Innovation Focus remains on innovation in Q1 2018 13
Slide 14: Strengthening the portfolio through internationalization
Strategic report – Internationalization Strengthening the portfolio through internationalization 14
Slide 15: Portfolio companies now present in 30 countries
Strategic report – Internationalization Portfolio companies meanwhile have a presence in 30 countries 815.5 million 7,487 376.4 million 1,411 448.7 million 1,312 Sales and employee figures as at 12/2017, locations as at 05/2018, Europe = EU and Switzerland 15
Slide 16: Agenda
oO FWwWn = INDUS AT A GLANCE STRATEGIC REPORT FOR Qi 2018 FINANCIAL DEVELOPMENT IN Qi 2018 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 16
Slide 17: A look back at Q1 2018
INDUS in figures A look back at Q1 2018 Portfolio companies continue to benefit from good economic situation Operating result adversely affected by growing cost of e energy, materials and personnel expenses, among other factors One strategic addition each for AURORA and OFA (closing in Q2 2018) Porf
Slide 18: Q1 2018 at a glance
INDUS in figures Q1 2018 at a glance Sales 408.2 381.0 7.1 Total assets 1,691.7 1,653.2 2.3 EBITDA 51.9 49.7 4.4 Equity capital 694.5 673.8 3.1 EBIT 35.5 34.7 2.3 Equity ratio (in %) 41.1 40.8 0.3 pp EBIT margin (in %) 8.7 9.1 -0.4 pp Net debt 467.0 398.9 17.1 EBIT adj. (after acquisition effects) 3
Slide 19: Income statement from 01.01.2018 – 31.03.2018
INDUS in figures Income statement from 01.01.2018 – 31.03.2018 Revenues again at record level EBIT margin: 8.7% Adjusted EBIT margin: 9.3% Reduced Slightly incl. repositionings, depreciation/ interest lower amortization, increased cost of expenses tax rate materials and personnel expenses +0.0% (in
Slide 20: Reconciliation to adjusted operating result (adj. EBIT)
INDUS in figures Reconciliation to adjusted operating result (adj. EBIT) (in EUR milions) 38.0 38.0 * Depreciation/Amortization from fair value adjustments relate to identified assets at fair value in connection with acquisitions made by the INDUS Group. ** Impacts of fair value adjustments in inven
Slide 21: Consolidated statement of cash flows
INDUS in figures Consolidated statement of cash flows 01.01.2018 – 31.03.2018 135.9 93.9 Almost halved on quarterly Moderate increase, incl. Working capital basis (Q1 2017 incl. acquisition cash received from increased to effectively of M+P); investments in borrowings, cash paid build up inventories
Slide 22: Segments: Overview Q1 2018
INDUS in figures Segments: Overview Q1 2018 Sales with external third parties 76.9 98.1 88.8 39.0 105.7 EBITDA 10.1 8.1 15.5 5.5 14.8 Depr./Amortization -2.3 -5.7 -3.0 -1.7 -3.4 EBIT 7.8 2.4 12.5 3.8 11.4 EBIT margin (in %) 10.1 2.4 14.1 9.7 10.8 Capital expenditure 3.3 7.0 2.2 0.9 1.2 Employees 1,7
Slide 23: Construction/Infrastructure Q1 2018
INDUS in figures Construction/Infrastructure Q1 2018 Sales revenues and earnings stay at very high level as economic activity remains good Exclusively organic revenue growth “Digital infrastructure” is a strong section Slightly disproportionate increase in operating result Capital expenditure (exclu
Slide 24: Automotive Technology Q1 2018
INDUS in figures Automotive Technology Q1 2018 Revenue growth in line with expectations Operating result clearly below previous year; result adversely affected by expected operating losses of the portfolio company undergoing a repositioning exercise, unfavourable seasonal sales of carbide studs,
Slide 25: Engineering Q1 2018
INDUS in figures Engineering Q1 2018 Strong increase in sales revenues Mostly inorganic growth due to new acquisitions M+P and PEISELER (fully consolidated for first time in Q1 2018) Operating result increases at only slightly disproportionately lower rate for billing-related reasons Capital expendi
Slide 26: Medical Engineering/Life Science Q1 2018
INDUS in figures Medical Engineering/Life Science Q1 2018 Segment is on an even keel Moderate increase in sales revenues Operating result on a par with comparable quarter Experience has shown that margin tends to improve in the course of the fiscal year Capital expenditure on a par with comparable q
Slide 27: Metals Technology Q1 2018
INDUS in figures Metals Technology Q1 2018 Increase in revenues mainly driven by carbide tools and mining (chisel production) First successes of the ongoing repositioning are visible Clearly disproportionate increase in operating result; EBIT margin thus back on track for full year (8-10%) Capital e
Slide 28: Outlook 2018: The world economy
Outlook 2018 The world economy While growth will be slightly less dynamic, the economic environment remains generally positive in the current fiscal year. Geopolitical hotspots, the threat of a trade war and the potential risk of a hard Brexit are putting a damper on the German economy. But economic
Slide 29: Outlook 2018: INDUS sectors
Outlook 2018 INDUS sectors Economic framework remains very good; capacities restricted by shortage of skilled labour; construction and security technology are sectors of the future for INDUS OEMs increase their investment budgets again; pre-series suppliers remain under margin pressure; rising steel
Slide 30: Outlook 2018: INDUS Group
Outlook 2018 INDUS Group COMPASS 2020 strategy to be continued in 2018 Continued sharpening of strategic priorities such as innovation and digitization Continuation of the investment drive (EUR 88 million planned for property, plant and equipment and intangible assets) Further acquisitions planned (
Slide 31: Guidance for the Group confirmed
Outlook 2018 Guidance for the Group confirmed Sales EUR 1,640.6 million EUR 1.65 - 1.70 billion EBIT EUR 152.9 million EUR 154 - 160 million Acquisitions 2 growth 2 growth acquisitions acquisitions Investments in property, plant, EUR 79.0 million EUR 88 million and equipment and intangible assets Eq
Slide 32: Agenda
Uo FWwWn = INDUS AT A GLANCE STRATEGIC REPORT FOR Qi 2018 FINANCIAL DEVELOPMENT IN Qi 2018 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 32
Slide 33: Reliable participation in success
Share and dividend Reliable participation in success Dividend of EUR 1.50 per share proposed for FY 2017 (EUR 1.35 in previous year). INDUS Holding AG’s profit distribution would thus total EUR 36.7 million, which would be equivalent to 43.9% of the distributable profit (42.7% in previous year). The
Slide 34: Very stable shareholder base
Share and dividend Very stable shareholder base WKN/ISIN 620010/DE 000 620 010 8 Established/IPO 1986/1995 Fiscal year 01.01. – 31.12. Capital stock EUR 63,6 milion Number of shares 24,450,509 no-name bearer shares Last capital increase 02.12.2013 Free float approx. 72% XETRA, Düsseldorf, Frankfurt
Slide 35: Analysts' estimates and target prices
Share and dividend Analysts‘ estimates and target prices INDUS share currently covered by eight banks and investment firms. Most recently, Equinet Bank started equity research on INDUS again in August 2017. The average target price currently stands at EUR 69.79. 35
Slide 36: Price performance
Share and dividend Price performance 250 15 200 10 150 5 100 0 50 -5 0 -10 -50 31.12.17 31.01.18 28.02.18 31.03.18 30.04.18 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 INDUS Holding AG DAX Index SDAX Performance Index INDUS Holding AG DAX Index SDAX Performanc
Slide 37: Agenda
wm FWwWn INDUS AT A GLANCE STRATEGIC REPORT FOR Qi 2018 FINANCIAL DEVELOPMENT IN Qi 2018 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 37
Slide 38: Performance in the past five years
INDUS in figures Performance in the past five years 180 20.0% 1,640.6 160 152.9 18.0% 1,444.3 144.9 1,388.9 136.3 16.0% 1,255.7 140 127.2 1,186.8 118.6 14.0% 120 12.0% 100 10.0% 80 10.0% 10.1% 9.8% 10.0% 9.3% 8.0% 60 6.0% 40 4.0% 20 2.0% 0 0.0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 129.2
Slide 39: Performance of the segments in the past five years
INDUS in figures Performance of the segments in the past five years 39
Slide 40: Financial calendar
Financial calendar Publication and capital market dates in 2018 15 May 2018 Interim Report on Q1 2018 Publication 24 May 2018 Annual Shareholders' Meeting Cologne 29 May 2018 Roadshow Zurich 12 July 2018 Roadshow Rhineland 14 August 2018 Interim Report on H1/Q2 2018 Publication 16 August 2018 Roadsh