H2apex Group Sca · XETR:H2A

H2apex Group Sca — exceet Group — FY2017 Earnings Presentation

40 slides from H2apex Group Sca's earnings presentation, February 2018

1. Slide 1: Company Presentation

   Company Presentation February 2018

2. Slide 2: Agenda

    Business Model  Selected Applications & Operational Highlights  Financial Review & Analysis  Group Strengths 2 exceet Group | February 2018

3. Slide 3: Our Profile

   Our Profile exceet is an international technology (in EUR million) FY 20151) FY 20161) FY 2017 group specialized in development and production of intelligent, complex and Net Sales 136.4 135.3 143.4 secure electronics. EBITDA 10.0 8.1 9.5 exceet is focused on the Health and EBITDA Margin 7.3% 6.0% 6

4. Slide 4: Our Activities

   Our Activities 4 exceet Group | February 2018

5. Slide 5: Our Segments

   Our Segments Reporting Segments* Competences End Markets* Application Examples ECMS  Hearing Aids Electronic Components,  Diagnostic Devices Modules & Systems Miniaturization Health  Wearables  Implants 93% Certified Box-  Telematic Building Infrastructure &  IoT Applications  PKI 39% of grou

6. Slide 6: Agenda

    Business Model  Selected Applications & Operational Highlights  Financial Review & Analysis  Group Strengths 6 exceet Group | February 2018

7. Slide 7: Health - Body Wearable Electronics

   Health - Body Wearable Electronics Miniaturized, complex, durable electronics for highest medical requirements Strategic focus Electronics in sophisticated applications  Focus on miniaturized electronics for Hearing Aid EEG sophisticated applications in life Body Area Network Smart Implants support

8. Slide 8: Health - Body Wearable Electronics

   Health - Body Wearable Electronics exceet as a full-service partner along the entire value chain Wearable Monitor Store securily Device developed and manufactured by exceet Mobile monitoring APP Secure cloud storage Highlights Advantages for customers / users  exceet develops and manufactures body

9. Slide 9: Health - Implantable Cardioverter Defibrillator

   Health - Implantable Cardioverter Defibrillator Development & Production of highly miniaturized, extremely durable PCBs 4-Layer Rigid-Flex Board by exceet Newest generation of Implantable Cardioverter Defibrillator Description Advantages for customers / users  exceet provides the PCB for a subcutan

10. Slide 10: Health - Cochlear Hearing Aids

    Health - Cochlear Hearing Aids Development & Production of highly miniaturized, extremely durable PCBs Description Advantages for customers / users  Development and manufacturing of printed  Can be used already in infancy - enables circuit board (PCB) for implants participation in social life and

11. Slide 11: Industry - Services for Microchip Placement

    Industry - Services for Microchip Placement From Wafer to End Product within 8 Weeks Description Advantages for Customers  Competitive advantages and short time to  exceet expanded its value chain in market thanks to exceets’ short delivery microchip placement and offers state-of- times the-art pr

12. Slide 12: Industry - Multi-Channel Optic Transceiver

    Industry - Multi-Channel Optic Transceiver Fast data communication – especially in small spaces Optical signal Multi-Channel optical transceiver Electronic signal Description Advantages for customers / users  Optical signals are converted to electrical  Reduction of cost and space in the field of

13. Slide 13: Industry - Doors & Windows

    Industry - Doors & Windows Controls for blinds, roller shutters, lift & sliding doors, escape & rescue routes Description Advantages for Customers  Control systems for various applications  High power efficiency  Engineering and production  Small construction space  Customized solutions  Flexi

14. Slide 14: Industry - Lighting Solutions

    Industry - Lighting Solutions LED lighting for harsh environments Description Advantages for customers / users  Coating and encapsulation (pressure  LED control system for various applications resistant)  Engineering and production  High light output  State-of-the-art facility  Thermal managem

15. Slide 15: Industry - Reader for QR Codes & Bar Codes

    Industry - Reader for QR Codes & Bar Codes Development of a complex electronic module for optical use Description Advantages for customers / users  Electronic development of HW and  Multi connection solution embedded Firmware (Bluetooth, Wi-Fi, USB)  Implementation of camera system  Secure scann

16. Slide 16: Industrial IoT - Devices for M2M Solutions

    Industrial IoT - Devices for M2M Solutions Charging solutions for electric vehicles Remote service via VPN service portal Description Advantages for customers / users  Transparent remote service  Simple, safe and scalable solution for recharging electric cars  Automatic configuration of devices 

17. Slide 17: Industrial IoT - Industrial Solutions

    Industrial IoT - Industrial Solutions Intelligent & secure networking of machine tools Description Advantages for customers / users  Selection and realization of a costumer  Comprehensive, real-time machine tool specific pilot IoT Platform for networking of data available at different locations an

18. Slide 18: Industrial IoT - exceet connect

    Industrial IoT - exceet connect Secure, scalable & modular solution Secure Device Management Maximum secure Management of industrial IoT devices by hardware based cryptography Data encryption in the cloud Managed Service for hardware based data encryption in the cloud & cloud applications Identity M

19. Slide 19: Agenda

     Business Model  Selected Applications & Operational Highlights  Financial Review & Analysis  Group Strengths 19 exceet Group | February 2018

20. Slide 20: Financial Highlights

    Financial Highlights ▪ Free Cash Flow EUR 4.6 million (2016: EUR (6.8) million) driven by: • Revenues are up 6.0% ▪ Operational Cash Flow EUR 8.3 million to EUR 143.4 million Free (2016: EUR 0.3 million) Net (2016: EUR 135.3 million) Cash ▪ Capex of EUR 3.7 million Sales ▪ Organic growth: 6.6% (2016

21. Slide 21: Net Sales Full Year 2017 and Q4 2017

    Net Sales (in EUR 1’000) (1) (868) Q4 2017 35’507 35’506 34’638 Actual Organic growth Like for like FX Impact Scope changes Actual Q4 2016 Q4 2017 8’930 (869) Full year 2017 135’322 144’252 143’383 Actual Organic growth Like for like FX Impact Scope changes Actual 2016 2017 FX rate EUR/CHF: Actual 1

22. Slide 22: EBITDA Full Year 2017 and Q4 2017

    EBITDA (in EUR 1’000) (18) (38) Q4 2017 1’557 1’539 1’501 Actual Organic growth Like for like FX Impact Scope changes Actual Q4 2016 Q4 2017 (50) Full year 2017 1’431 9’537 9’487 8’106 Actual Organic growth Like for like FX Impact Scope changes Actual 2016 2017 FX rate EUR/CHF: Actual 12M 2017: 1.11

23. Slide 23: Net Sales by Countries 2017

    Net Sales by Countries 2017 9% Germany 22% Switzerland 44% Austria 33% 12% The Netherlands 58% 5% Others 17% 23 exceet Group | February 2018

24. Slide 24: From EBITDA to Free Cash Flow

    From EBITDA to Free Cash Flow (in EUR 1’000) 1’706 (2’322) (568) (12) (3’689) 9’487 4’602 Reported EBITDA Non-cash items recorded Taxes paid Interest paid Change in NWC Net Capex Free Cash Flow 2017 above EBITDA 2017 ■ Free Cash Flow in 2017 EUR 4.6 million versus EUR (6.8) million in 2016 ■ Main Fr

25. Slide 25: Net Debt / (Cash)

    Net Debt / (Cash) (in EUR 1’000) (4’602) 5’417 1’723 (2’044) (1’242) (748) Actual Free Cash Flow FX Impact FX Impact Others Actual YE 2016 (inflow) on cash on borrowings YE 2017 Borrowings 36'291 Borrowings 28'217 Cash (30'874) Cash (28'965) Net Debt / (Cash) 5'417 Net Debt / (Cash) (748) ■ Net Debt

26. Slide 26: Net Working Capital

    Net Working Capital (in EUR million) 70 114.0% 120.0 110.2% 103.6% 104.7% 105.2% 104.1% 110.0 101.1% 98.6% 60 96.1% 92.9% 95.2% 95.1% 100.0 90.3% 85.9% Trade payables Inventories 90.0 78.9% 50 Other current liabilities 80.0 40 Accrued expenses and deferred income 70.0 60.0 30 50.0 Current income tax

27. Slide 27: Agenda

     Business Model  Selected Applications & Operational Highlights  Financial Review & Analysis  Group Strengths 27 exceet Group | February 2018

28. Slide 28: Group Strengths

    Group Strengths Strong skills in development & manufacturing of miniaturized electronic components, Miniaturization modules & systems Specialist with many years of experience in development and manufacturing of Health complete medical devices and experienced Partner for FDA approvals & certification

29. Slide 29: Lh ©GXCeEETF is exciting

    Lh ©GXCeEETF is exciting

30. Slide 30: Annex

    Annex 30 exceet Group | February 2018

31. Slide 31: History of exceet

    History of exceet 2006 2008 2009 2010 2011 2012 2014 2015 Add-on acquisitions Acquisition of Merger with Acquisition of Acquisition of Acquisition of Acquisition of Foundation of ECR AG Mikrap AG and Card Factory Winter AG and AuthentiDate Inplastor Gmbh Valtronic exceet USA, Inc. and GS AEMtec GmbH

32. Slide 32: Top Customers

    Top Customers Top 10 Customer = 44% of total Sales Customer Revenue in EUR million Industry 17.6 Health 10.5 Health 7.2 Health 6.7 Industry 5.5 Industry 3.6 Industry 3.1 Industry 3.0 Health 3.0 Industry 2.6 Total 62.8 Status: December 2017 32 exceet Group | February 2018

33. Slide 33: Production & Engineering Sites

    Production & Engineering Sites ECMS ESS Berlin, D ① Düsseldorf, D ⑦ Design, development, industrialization Software and services (e.g. cloud services) and series production for high-end complex for secure connectivity electronic and optoelectronic systems ⑧ Zirndorf, D ② Customized routers and IoT r

34. Slide 34: Actual Shareholder Structure (31 December 2017)

    Actual Shareholder Structure (31 December 2017)1) VM Holding GmbH & Co. KG 5.6% Roland Lienau 0.3% Heidelberger Beteiligungsholding AG 7.4% exceet Group (treasury shares) 2.2% Other Shareholders 15.6% Argos Funds and Quaero Funds 12.8% Issued Shares: 20’523’695 White Elephant S.à r.l. (Active Owners

35. Slide 35: Actuals

    Actuals Net Sales (EUR million) Organic Growth Rate (%) 22.7% 145.1 143.4 135.9 137.0 136.4 135.3 125.4 11.5% 10.7% 6.6% 4.4% 4.9% 2.5% 3.2% 3.7% 0.5% 0.0% (0.2%) 35.6 33.5 33.1 34.2 31.5 33.9 34.4 35.5 35.4 35.7 37.6 34.7 (6.0%) (8.2%) (8.7%) (8.7%) (11.7%) (11.0%) (14.3%) Recurring EBITDA (EUR mil

36. Slide 36: Consolidated Financials: Income Statement

    Consolidated Financials January – December 2016 & 2017 Income Statement (in EUR 1'000) Jan. - Dec. 2017 Jan. - Dec. 2016 Revenue 143'383 135'322 Cost of sales (125'167) (118'115) Gross profit 18'216 17'207 % margin 12.7% 12.7% Distribution costs (8'769) (9'189) Administrative expenses (8'229) (9'256

37. Slide 37: Consolidated Financials: Balance Sheet

    Consolidated Financials 31 December 2016 / 31 December 2017 Assets (in EUR 1'000) 31 December 2017 31 December 2016 Tangible assets 26'528 29'086 Intangible assets 22'770 38'551 Deferred tax assets 1'233 1'206 Other financial investments 384 1'517 Inventories 30'033 28'657 Trade receivables, net 17'

38. Slide 38: Consolidated Financials: Cash Flow Statement

    Consolidated Financials January – December 2016 & 2017 Cash Flow Statement (in EUR 1'000) Jan. - Dec. 2017 Jan. - Dec. 2016 1) Earnings before taxes (9'410) (5'440) Depreciation, amortization & impairment charges 19'990 12'486 Financial income / (expenses), net 663 770 Change in fair value in financ

39. Slide 39: Consolidated Financials: Segment Information

    Consolidated Financials January – December 2016 & 2017 Segment Information ECMS ESS Corporate & Eliminations Group Others Consolidation Jan. - Dec. Jan. - Dec. Jan. - Dec. Jan. - Dec. Jan. - Dec. (in EUR 1'000) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Net Sales 134'022 126'191 9'385 9'191 2

40. Slide 40: Disclaimer & Contact

    Disclaimer & Contact This presentation contains forward-looking statements based on beliefs of exceet Group SE management. Such statements reflect current views of exceet Group SE with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially

exceet Group — FY2017 Earnings Presentation on 6ix