Indus Holding Ag · XETR:INH
Indus — Q1 2021 Earnings Presentation
52 slides from Indus's earnings presentation, May 12, 2021
Slide 1: Presentation of Income for the First Quarter of 2021
PRESENTATION OF INCOME FOR THE FIRST QUARTER OF 2021 Bergisch Gladbach, May 12, 2021
Slide 2: Key Developments Q1 2021
KEY DEVELOPMENTS Q1 2021 AGILITY OF SMES PAYS OFF Noticeable recovery (especially in the segments of Engineering and Metals Technology) Positive effects from the INTERIM SPRINT package of measures and the reduction in personnel costs Strong liquidity position due to capital increase secures ab
Slide 3: INDUS in Figures: Income Q1 2021
INDUS IN FIGURES INCOME Q1 2021 REVENUE (in EUR million) EBIT (in EUR million) EBIT MARGIN (in %) -0.2% 401.2 400.4 +56.3% +2.2pp 16.0 25.0 4.0 6.2 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021
Slide 4: INDUS in Figures: Key Figures Q1 2021
INDUS IN FIGURES KEY FIGURES Q1 2021 OPERATING CASH FLOW (in EUR million) NET DEBT (in EUR million) EQUITY RATIO (in %) -4.6% 518.9 494.9 +1.9 pp <-100% 39.1 41.0 2.6 -15.0 Q1 2020 Q1 2021 Dec. 31, 2020 Mar. 31, 2021 Dec. 31, 2020 Mar. 31, 2021
Slide 5: Use of Emission Revenue for Further Growth
USE OF EMISSION REVENUE FOR FURTHER GROWTH ACQUISITIONS IN DEFINED GROWTH INDUSTRIES 2021: STRENGTHENING THE PORTFOLIO STRUCTURE “In the current favorable M&A environment, we want to be able to act ENGINEERING SEGMENT quickly in order to acquire new hidden champions. We are currently in promising ta
Slide 6: Investment in Growth Industries
INVESTMENT IN GROWTH INDUSTRIES SIGNIFICANT INCREASE IN M&A ACTIVITIES SINCE THE BEGINNING OF THE YEAR AS OF MAY 12, 2021 Automation and Measuring Technology and Control Engineering GROWTH Infrastructure and logistics technology Promising transactions currently in progress INDUS-TRIES Construc
Slide 7: Agenda
AGENDA 1 OUR DNA 2 PARKOUR - UPDATE 3 INDUS IN FIGURES - Q1 2021 4 OUTLOOK 5 ANNUAL SHAREHOLDERS’ MEETING, SHARE AND DIVIDEND 6 APPENDIX 7
Slide 8: The SME Holding Company
THE SME HOLDING COMPANY ACQUISITION AND DEVELOPMENT OF MEDIUM-SIZED HIDDEN CHAMPIONS We predominantly acquire owner- managed companies from the manufacturing SME sector. We support them in their long-term orientation and entrepreneurial development. 8
Slide 9: INDUS Business Model: Buy, Hold & Develop
INDUS BUSINESS MODEL GERMAN SMES ARE OUR PASSION INDUS – leading specialists for long-term investment and development of SMEs in the German-speaking market Investment in medium-sized hidden champions in manufacturing ʜ Diversified portfolio of 47 companies Growth and stable earnings through a
Slide 10: INDUS Business Model
INDUS BUSINESS MODEL INDUS AS A... MAJORITY FINANCIAL HOLDING SHAREHOLDER COMPANY BANK CONSULTANT Long-term holding Financing tasks relating Company acquisitions Expertise perspective to the management of Investments in property, Strategic sparring Operational the portfolio companies p
Slide 11: INDUS Portfolio Companies Have an International Presence
INDUS BUSINESS MODEL INDUS PORTFOLIO COMPANIES HAVE AN INTERNATIONAL PRESENCE Breakdown of sales by region Germany Europe Rest of world Employees by region Germany Europe Rest of world Sales and employees worldwide THE INDUS GROUP HAS LOCATIONS IN 32 Sales: EUR 1.56 billion Employees: 10,644 (As of
Slide 12: ISS ESG Rating
ISS ESG RATING SUSTAINABILITY AS AN INTEGRAL COMPONENT – AWARDED FOR THE FIFTH TIME “PRIME” STATUS IN ISS ESG RATING Top position in ISS ESG rating for the fifth time in a row INDUS received a “C+” rating in “Corporate ESG Performance” and hence also “Prime” status Top position in the internat
Slide 13: Creating Sustainable Values
CREATING SUSTAINABLE VALUES OUR PROMISES TO OUR STAKEHOLDERS SHAREHOLDERS SELLING “We preserve people’s life’s ENTREPRENEURS work and ensure the They have the opportunity to invest in a broadly identity, continued existence diversified managed portfolio of German- and successful further language SME
Slide 14: Agenda
AGENDA 1 OUR DNA 2 PARKOUR - UPDATE 3 INDUS IN FIGURES - Q1 2021 4 OUTLOOK 5 ANNUAL SHAREHOLDERS’ MEETING, SHARE AND DIVIDEND 6 APPENDIX 14
Slide 15: The PARKOUR Strategy
THE PARKOUR STRATEGY INCREASE PERFORMANCE 1 STRENGTHEN THE PORTFOLIO STRUCTURE 2 DRIVE INNOVATION 3 INCREASE PERFORMANCE 15
Slide 16: Complementary Additions
1. STRENGTHEN THE PORTFOLIO STRUCTURE GROWTH THROUGH ACQUISITIONS 2021 GROWTH ACQUISITIONS At least 2 growth acquisitions planned Signing Q4 2020, closed Signing Q1 2021, January 1, 2021 closed May 18, 2021 2015 2017 2019 2021 202 2016 2018 2020 ESDA MBH ELECTRONIC EQUIPMENT ABILITY PRODUCTS INC. CO
Slide 17: Driving Innovation
2. DRIVING INNOVATION HOW INDUS SUPPORTS INNOVATION INNOVATION DEVELOPMENT BANK STRATEGIC PROJECTS KNOWLEDGE NETWORK Supporting innovation Deriving innovation Market and trend analyses Recruiting experts projects strategies Managing innovation Universities Development of new Overcomi
Slide 18: Improving Performance: Operational Excellence
3. IMPROVING PERFORMANCE HOW INDUS PROMOTES OPERATIONAL EXCELLENCE OPERATIONAL EXCELLENCE STATUS CHECK IMPLEMENTATION KNOWLEDGE COOPERATION Identifying and Support for Platform for sharing Establishing and prioritizing potential for transformation and knowledge maintaining a partner improvem
Slide 19: Improving Performance: Financial Excellence
3. IMPROVING PERFORMANCE HOW INDUS PROMOTES FINANCIAL EXCELLENCE FINANCIAL EXCELLENCE ˍ STABILITY & EXPERT FINANCE DIGITALIZATION PROCESS LIQUIDITY FUNCTION OPTIMIZATION Ability to act thanks to Training financial Transparency with Consolidation and significant liquidity buffer managers mode
Slide 20: Digitalization
OUR GOALS FOR THE COMING YEAR DIGITALIZATION DIGITALIZATION 20
Slide 21: Additional Growth at Jungmann
ADDITIONAL GROWTH AT JUNGMANN “TACTIC TABLE”: TECHNOLOGY FOR TEAM-BASED SOLUTIONS MULTICONSOLING Jungmann Systemtechnik GmbH & Co. KG (JST) FLEXIBLE GESTURE CONTROL offers comprehensive expertise in the design, construction and maintenance of control room solutions. SAFE HANDLING Employees: Approx.
Slide 22: Agenda
AGENDA 1 OUR DNA 2 PARKOUR - UPDATE 3 INDUS IN FIGURES - Q1 2021 4 OUTLOOK 5 ANNUAL SHAREHOLDERS’ MEETING, SHARE AND DIVIDEND 6 APPENDIX 22
Slide 23: Overview Q1 2021
OVERVIEW Q1 2021 SUCCESSFUL START TO THE 2021 FINANCIAL YEAR KEY EARNING FIGURES (in EUR million) Q1 2021 Q1 2020 ∆ in % Revenue 400.4 401.2 -0.2 Good business performance despite coronavirus EBITDA 47.7 39.3 21.4 restrictions EBIT 25.0 16.0 56.3 Beginning recovery of the Automotive EBIT margin
Slide 24: General Market Development in Q1 2021
GENERAL MARKET DEVELOPMENT IN Q1 2021 INCONSISTENT PICTURE OF INDIVIDUAL MARKET SEGMENTS CONSTRUCTION/ AUTOMOTIVE MEDICAL INFRASTRUCTURE TECHNOLOGY ENGINEERING ENGINEERING/ METALS TECHNOLOGY LIFE SCIENCE No effect from pandemic Demand from the USA Higher number of Development still Noticea
Slide 25: Revenue by Segment Q1 2021
REVENUE BY SEGMENT Q1 2021 INCREASE IN REVENUE IN THREE OUT OF FIVE SEGMENTS MEDICAL CONSTRUCTION/ AUTOMOTIVE ENGINEERING/ INFRASTRUCTURE TECHNOLOGY ENGINEERING LIFE SCIENCE METALS TECHNOLOGY +2.7% -11.4% +9.8% +0.5% Revenue (in EUR million) -8.0% 93.5 96.0 78.9 92.6 106.1 106.6 69.9 84.3 38.7 35.6
Slide 26: EBIT by Segment Q1 2021
EBIT BY SEGMENT Q1 2021 SIGNIFICANT IMPROVEMENT IN THREE OUT OF FIVE SEGMENTS MEDICAL CONSTRUCTION/ AUTOMOTIVE ENGINEERING/ INFRASTRUCTURE TECHNOLOGY ENGINEERING LIFE SCIENCE METALS TECHNOLOGY -4.5% >100% +12.2% EBIT (in EUR million) 0.0% +19.2% 15.5 14.8 8.9 9.0 10.1 -12.0 -9.7 2.6 3.1 3.1 Q1 2020
Slide 27: Development in the Automotive Technology Segment
DEVELOPMENT IN THE AUTOMOTIVE TECHNOLOGY SEGMENT STRUCTURAL IMPROVEMENT AND “INTERIM SPRINT” PACKAGE SHOW PROGRESS MARKET DEVELOPMENT AUTOMOTIVE TECHNOLOGY SEGMENT Structural crisis in the automotive sector Critical businesses are redefining themselves, and intensifies. Alternative drive forms are b
Slide 28: Making the Automotive Technology Segment Fit for the Future
MAKING THE AUTOMOTIVE TECHNOLOGY SEGMENT “FIT FOR THE FUTURE” UPDATE ON THE PORTFOLIO COMPANIES INDEPENDENCE OF PASSENGER CAR SERIES INDEPENDENT CONV. COMPANY DESCRIPTION PRODUCTION BUSINESS DRIVE TECHNOLOGY FOCUS ON PROMISING DRIVE FORMS, STRATEGY Significant market potential through the provision
Slide 29: Construction/Infrastructure Q1 2021
CONSTRUCTION/INFRASTRUCTURE Q1 2021 ENCOURAGING EBIT MARGIN OF 15.4% (in EUR million) Q1 2021 Q1 2020 ∆ in % Revenue with external third parties 96.0 93.5 2.7 Earnings still very high and in line with expectations EBITDA 18.9 19.4 -2.6 Majority of portfolio companies record stable performance on
Slide 30: Automotive Technology Q1 2021
AUTOMOTIVE TECHNOLOGY Q1 2021 POSITIVE EFFECTS FROM “INTERIM SPRINT” MEASURES – 2021 A YEAR OF TRANSITION (in EUR million) Q1 2021 Q1 2020 ∆ in % Revenue with external third parties 69.9 78.9 -11.4 Improvement of operating income mainly due to positive impact EBITDA -3.1 -5.0 38.0 INTERIM SPRINT p
Slide 31: Engineering Q1 2021
ENGINEERING Q1 2021 SIGNIFICANT RECOVERY IN Q1 2021 – ACQUISITION OF JST COMPLETED (in EUR million) Q1 2021 Q1 2020 ∆ in % Revenue with external third parties 92.6 84.3 9.8 Overcoming weakness of the previous year beginning to become EBITDA 14.2 7.7 84.4 apparent Depreciation/amortization -5.3 -5.
Slide 32: Medical Engineering/Life Science Q1 2021
MEDICAL ENGINEERING/LIFE SCIENCE Q1 2021 IMPROVED EBIT MARGIN DUE TO REDUCTION OF COST STRUCTURE (in EUR million) Q1 2021 Q1 2020 ∆ in % Revenue with external third parties 35.6 38.7 -8.0 Continued negative impact from coronavirus restrictions at most of EBITDA 5.8 5.6 3.6 the segment companies De
Slide 33: Metals Technology Q1 2021
METALS TECHNOLOGY Q1 2021 POSITIVE EFFECTS FROM “INTERIM SPRINT” MEASURES – EBIT MARGIN INCREASES TO 9.5% (in EUR million) Q1 2021 Q1 2020 ∆ in % Revenue with external third parties 106.6 106.1 0.5 Declining revenue compensated for by positive market development EBITDA 14.0 13.6 2.9 thanks to the
Slide 34: Agenda
AGENDA 1 OUR DNA 2 PARKOUR - UPDATE 3 INDUS IN FIGURES - Q1 2021 4 OUTLOOK 5 ANNUAL SHAREHOLDERS’ MEETING, SHARE AND DIVIDEND 6 APPENDIX 34
Slide 35: Economic Environment – Outlook 2021
ECONOMIC ENVIRONMENT – OUTLOOK 2021 CONTINUED HIGH UNCERTAINTY DESPITE SLOW RECOVERY (Still) subdued recovery of the global economy due to ongoing COVID-19 pandemic Uncertainty about further course of the pandemic in view of faltering progress with vaccinations and mutations Risk of a wave of
Slide 36: Sector Environment – Outlook 2021
SECTOR ENVIRONMENT – OUTLOOK 2021 STILL HIGH UNCERTAINTY DESPITE SLOW RECOVERY CONSTRUCTION/ AUTOMOTIVE MEDICAL INFRASTRUCTURE TECHNOLOGY ENGINEERING ENGINEERING/ METALS TECHNOLOGY LIFE SCIENCE Cautious start to 2021 Despite a recovery in Slight pick-up due to Mixed picture in the Signific
Slide 37: Confirmation of 2021 Forecast
CONFIRMATION OF 2021 FORECAST (PUBLISHED MARCH 23, 2021) EXPECTED CONSEQUENCES OF CORONAVIRUS PANDEMIC OUTWEIGH THE SEGMENT FORECAST CONSTRUCTION/ AUTOMOTIVE MEDICAL ENGINEERING/ METALS SEGMENTS GROUP ENGINEERING INFRASTRUCTURE TECHNOLOGY LIFE SCIENCE TECHNOLOGY 2020 PLAN 2020 PLAN 2020 PLAN 2020 PL
Slide 38: Our 7-Point Target for 2025
OUR 7-POINT TARGET FOR 2025 … ... IS CONFIRMED 1 55 to 60 portfolio companies with revenue significantly over EUR 2 billion. 2 EBIT target margin of 10% reliably reached again. 3 Growth industries are clearly reflected in the portfolio. 4 Innovation has established itself as a growth engine in the p
Slide 39: Agenda
AGENDA 1 OUR DNA 2 PARKOUR - UPDATE 3 INDUS IN FIGURES - Q1 2021 4 OUTLOOK 5 ANNUAL SHAREHOLDERS’ MEETING, SHARE AND DIVIDEND 6 APPENDIX 39
Slide 40: Annual Shareholders' Meeting 2021
ANNUAL SHAREHOLDERS’ MEETING 2021 ONLINE AGAIN The virtual Annual Shareholders’ Meeting will take place on May 26, 2021 Board of Management and Supervisory Board propose to the Annual Shareholders’ Meeting the payment of a dividend of EUR 0.80 per share All important documents and information
Slide 41: Dividend for Financial Year 2020 at Previous Year's Level
DIVIDEND FOR FINANCIAL YEAR 2020 AT PREVIOUS YEAR’S LEVEL (AS OF MARCH 26, 2021, FOLLOWING CAPITAL INCREASE) Regular participation of shareholders in At least 50% of profits retained to Up to 50% of profits distributed business success strengthen the company 60.0% 46.4% 48.0% 3.8% 41.9% 42.7% 43.9%
Slide 42: Shareholder Structure Following Capital Increase
SHAREHOLDER STRUCTURE FOLLOWING CAPITAL INCREASE (MARCH 26, 2021) ANCHOR SHAREHOLDERS SUPPORT THE LONG-TERM CORPORATE STRATEGY SHAREHOLDER STRUCTURE OF INDUS HOLDING AG AS OF APRIL 1, 2021 WKN/ISIN 620010/DE 000 620 010 8 Foundation/IPO 1986/1995 Financial year Jan. 1 – Dec. 31 VERSICHERUNGSKAMMER S
Slide 43: Agenda
AGENDA 1 OUR DNA 2 PARKOUR - UPDATE 3 INDUS IN FIGURES - Q1 2021 4 OUTLOOK 5 ANNUAL SHAREHOLDERS’ MEETING, SHARE AND DIVIDEND 6 APPENDIX 43
Slide 44: Thank You
THANK YOU FOR YOUR ATTENTION! From left to right: Rudolf Weichert (Member of the Board) Axel Meyer (Member of the Board) Dr. Johannes Schmidt (Chairman of the Board) Dr. Jörn Großmann (Member of the Board) 44
Slide 45: Contact
CONTACT CORPORATE COMMUNICATIONS INVESTOR RELATIONS PUBLIC RELATIONS DAFNE SANAC Nina Wolf +49 (0) 2204-4000-32 +49 (0) 2204-4000-73 investor.relations@indus.de presse@indus.de
Slide 46: Financial Calendar
FINANCIAL CALENDAR FINANCIAL CALENDAR 2021 DATE EVENT LOCATION May 12, 2021 Interim report Q1 2021 Publication May 26, 2021 Annual Shareholders’ Meeting 2021 Virtual August 11, 2021 Interim report Q2 2021 Publication November 11, 2021 Interim report Q3 2021 Publication
Slide 47: INDUS Portfolio Companies: Construction/Infrastructure
INDUS PORTFOLIO COMPANIES CONSTRUCTION/INFRASTRUCTURE SEGMENT COMPANIES DESCRIPTION LOCATIONS Anchoring and reinforcement technology Dielsdorf (CH), Cologne (DE), Lauchhammer (DE), Rossens (CH) Anchoring and reinforcement technology Neuss (DE), Halle (DE) Sealants made of silicone and acrylic Reichs
Slide 48: INDUS Portfolio Companies: Automotive Technology
INDUS PORTFOLIO COMPANIES AUTOMOTIVE TECHNOLOGY SEGMENT COMPANIES DESCRIPTION LOCATIONS Mudau (DE), Grand Rapids (US), Istanbul (TR), Nuenen (NL), Heating and air-conditioning systems for vehicles Oettingen (DE), Shanghai (CN), Weert (NL) Innovative cold extrusion parts, turned parts and locking scr
Slide 49: INDUS Portfolio Companies: Engineering
INDUS PORTFOLIO COMPANIES ENGINEERING SEGMENT COMPANIES DESCRIPTION LOCATIONS Robotic hands and automation systems for manufacturers Overath (DE), Plymouth (US), Wörth an der Donau (DE) Specialist for logistics and material flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmalkalden (DE) Bu
Slide 50: INDUS Portfolio Companies: Medical Engineering/Life Science
INDUS PORTFOLIO COMPANIES MEDICAL ENGINEERING/LIFE SCIENCE COMPANY DESCRIPTION LOCATION Packing non-woven products for medicines, cosmetics, cleaning and care +¸VEDFK '( .¸QLJVZDOGH '( /XEDĆ 3/ Miniaturised high-precision optics :LWWHQEDFK &+ .DÉ 65% 6DXHUODFK '( Bamberg (DE), Glauchau (DE), Maastri
Slide 51: INDUS Portfolio Companies: Metals Technology
INDUS PORTFOLIO COMPANIES METALS TECHNOLOGY COMPANY DESCRIPTION LOCATION Steel and aluminium assemblies for the rail industry Reinach (CH) Hard metal tools for road construction and mining, tunnel construction and special underground engineering, agriculture etc. Aichhalden (DE), Charlotte (US), Tai
Slide 52: Disclaimer
INDUS HOLDING AG DISCLAIMER This presentation was prepared by INDUS Holding AG (hereinafter referred to as “INDUS”) and is for information purposes only. It does not constitute an offer or a solicitation to buy or sell securities, nor should it be regarded as a sufficient or adequate basis for any d