Slide 1: Presentation of Income for the First Nine Months of 2022
PRESENTATION OF INCOME FOR THE FIRST NINE MONTHS OF 2022 Bergisch Gladbach, November 10, 2022
Slide 2: Agenda
AGENDA 1 MATERIAL DEVELOPMENTS – 9M 2022 2 OUR DNA 3 PARKOUR – UPDATE 4 INDUS IN FIGURES – 9M 2022 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 2
Slide 3: Material Developments – 9M 2022
MATERIAL DEVELOPMENTS – 9M 2022 ADJUSTED OPERATING EARNINGS PERFORMANCE ABOVE PREVIOUS YEAR Ongoing clear organic growth in sales Adjusted operating income better than in previous year due to solid performance of the largest three segments – Construction/Infrastructure, Engineering, and Metals T
Slide 4: INDUS in Figures: Income 9M 2022
INDUS IN FIGURES INCOME – 9M 2022 SALES (in EUR million) EBIT (in EUR million) EBIT MARGIN (in %) +10.7% 1,434.9 1,296.4 -85.8% -5.3pp 78.6 11.2 6.1 0.8 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 4
Slide 5: Presentation of Adjusted EBIT – 9M 2022
INDUS IN FIGURES PRESENTATION OF ADJUSTED EBIT – 9M 2022 EBIT adjusted for SMA value adjustments (EUR 37.1 million) and impairment losses from impairment testing (EUR 44.4 million) ADJUSTED EBIT (in EUR million) ADJUSTED EBIT MARGIN (in %) +6.8% -0.2pp 86.8 92.7 6.7 6.5 9M 2021 9M 2022 9M 2021 9M 20
Slide 6: Key Figures – 9M 2022
INDUS IN FIGURES KEY FIGURES – 9M 2022 OPERATING CASH FLOW (in EUR million) NET DEBT (in EUR million) EQUITY RATIO (in %) +28.3% 646.8 504.2 -99.9% -4.9pp 74.1 42,4 37,5 0.1 9M 2021 9M 2022 Dec. 31, 2021 Sep. 30, 2022 Dec. 31, 2021 Sep. 30, 2022 6
Slide 7: Agenda
AGENDA 1 MATERIAL DEVELOPMENTS – 9M 2022 2 OUR DNA 3 PARKOUR – UPDATE 4 INDUS IN FIGURES – 9M 2022 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 7
Slide 8: The SME Holding Company
THE SME HOLDING COMPANY BUYING AND DEVELOPING HIDDEN CHAMPIONS AMONG SMES We primarily acquire owner- managed companies operating in the manufacturing SME sector. We guide their long-term orientation and support their entrepreneurial development. 8
Slide 9: Creating Sustainable Value
CREATING SUSTAINABLE VALUE OUR PROMISE TO OUR STAKEHOLDERS SHARE- ENTRE- “We preserve the life’s work HOLDERS PRENEURS of the founding Shareholders can invest in a highly diversified INTENDING TO entrepreneurs and secure managed corporate portfolio in the SME sector SELL the identity, continuation o
Slide 10: INDUS Business Model
INDUS BUSINESS MODEL GERMAN SMES ARE OUR PASSION INDUS is a leading specialist in the long-term investment in and development of companies in the SME sector of the German- speaking countries Investing in hidden champions in the manufacturing SME sector Diversified portfolio of 47 companies G
Slide 11: INDUS Business Model: INDUS As A...
INDUS BUSINESS MODEL INDUS AS A... MAJORITY SHAREHOLDER HOLDING COMPANY FINANCIAL BACKER ADVISOR Long-term perspective Managerial accounting Company acquisitions Expertise Operational at portfolio companies Investments in property, Strategic sparring responsibility remains Financing
Slide 12: INDUS Portfolio Companies Are Represented Internationally
INDUS BUSINESS MODEL INDUS PORTFOLIO COMPANIES ARE REPRESENTED INTERNATIONALLY CONTRIBUTION TO SALES BY REGION Germany EU Rest of world EMPLOYEES BY REGION Germany EU Rest of world SALES AND EMPLOYEES GLOBALLY THE INDUS GROUP LOCATIONS IN Sales in 2021: Employees: EUR 1.74 billion 10,910 31 COUNTRIE
Slide 13: Agenda
AGENDA 1 MATERIAL DEVELOPMENTS – 9M 2022 2 OUR DNA 3 PARKOUR – UPDATE 4 INDUS IN FIGURES – 9M 2022 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 13
Slide 14: The PARKOUR Strategy
THE PARKOUR STRATEGY IMPROVING PERFORMANCE 1 STRENGTHENING PORTFOLIO STRUCTURE 2 DRIVING INNOVATION 3 IMPROVING PERFORMANCE 4 STRIVING FOR SUSTAINABILITY 14
Slide 15: Strengthening the Portfolio Structure
STRENGTHENING THE PORTFOLIO STRUCTURE GROWING THROUGH ACQUISITIONS GROWTH ACQUISITIONS 2017 2019 2021 2016 2018 2020 2022 MBH ELECTRONIC EQUIPMENT Rolko North FLACO COMPLEMENTARY ADDITIONS COMPUTEC America, Inc. OFA acquires retail company for (formerly ABILITY IN-SITU medical aids PRODUCTS, Inc.) Z
Slide 16: Investment in Growth Industries
INVESTMENT IN GROWTH INDUSTRIES INDUS ACQUISITION MODEL FOR FAMILY-RUN BUSINESSES REMAINS ATTRACTIVE DEVELOPMENT OF NICHE PLAYERS IN GERMAN SME INDUSTRY Automation, measuring technology and control engineering Technology for infrastructure and logistics FUTURE Focus on non-cyclical business mode
Slide 17: HEIBER + SCHRÖDER Maschinenbau GmbH
HEIBER + SCHRÖDER MASCHINENBAU GMBH APRIL 2022: INDUS ACQUIRES SPECIALIST FOR PACKAGING MACHINERY HEIBER + SCHRÖDER is a leading specialist for packaging machinery that develops and manufactures special machinery for packaging solutions made of cardboard and paperboard Headquartered in Erkrath
Slide 18: HELD Group
HELD GROUP MAY 2022: INDUS ACQUIRES MANUFACTURER OF LASER TECHNOLOGY SYSTEMS The HELD Group develops and produces customized machines and equipment for laser cutting and welding technology Application areas: • Technical textiles: e.g. cutting woven airbags • Innovative laser welding systems for
Slide 19: The PARKOUR Strategy
THE PARKOUR STRATEGY HOLD & DEVELOP 2 DRIVING INNOVATION 3 IMPROVING PERFORMANCE 4 STRIVING FOR SUSTAINABILITY MARKET EXCELLENCE OPERATIONAL EXCELLENCE EXPERTISE Market, trend and potential analysis; technical workshops and best practice days; knowledge transfer STATUS CHECK STATUS CHECK STATUS CHEC
Slide 20: Key Elements of Sustainable Practices
KEY ELEMENTS OF SUSTAINABLE PRACTICES INDUS ON TRACK TO CLIMATE NEUTRALITY INDUS CODE OF CONDUCT ... all portfolio companies required to comply ... ... portfolio companies offered OPERATIONAL methodological support as part of EXCELLENCE BOARD OF “operational excellence” pillar of the strategy ... MA
Slide 21: #2 SUSTA[IN]
#2 SUSTA[IN] COMMITMENT TO SUSTAINABILITY IN A VARIETY OF AREAS HAUFF-TECHNIK WASH PROJECTS The “VIVA CON AGUA” initiative is committed to ensuring access to clean drinking water. In 2021, AURORA HAUFF-Technik donated one euro LESS PACKAGING to global water projects for every AURORA switches to reus
Slide 22: ISS ESG Rating
ISS ESG RATING SUSTAINABILITY AN INTEGRAL PART OF OUR DNA – AWARDED FOR THE SEVENTH TIME “PRIME” STATUS IN ISS ESG RATING Top position in the ISS ESG rating for the seventh time in a row INDUS received a “C+” rating in “Corporate ESG Performance” and hence also “Prime” status Top position in t
Slide 23: Agenda
AGENDA 1 MATERIAL DEVELOPMENTS – 9M 2022 2 OUR DNA 3 PARKOUR – UPDATE 4 INDUS IN FIGURES – 9M 2022 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 23
Slide 24: Current Sector Environment & Outlook for 2022
CURRENT SECTOR ENVIRONMENT & OUTLOOK FOR 2022 CLEAR DETERIORATION IN ALL SECTORS MEDICAL CONSTRUCTION/ AUTOMOTIVE ENGINEERING ENGINEERING/ METALS TECHNOLOGY INFRASTRUCTURE TECHNOLOGY LIFE SCIENCE Clearly negative turnaround New vehicle registrations up Clear downturn in Mixed trends within t
Slide 25: Reconciliation of EBIT to Adjusted EBIT
RECONCILIATION OF EBIT TO ADJUSTED EBIT PRESENTATION OF OPERATING EARNINGS POWER OF THE INDUS GROUP IN EUR ’000 Q1–Q3 2022 Q1–Q3 2021 Q3 2022 Q3 2021 In 2022, significant distortions in P&L due to Operating income (EBIT) 11.2 78.6 -39.9 22.2 impairments and value adjustments (cf. Chart 26). Intr
Slide 26: Overview – 9M 2022
OVERVIEW – 9M 2022 STABLE OPERATING PERFORMANCE UNDER DIFFICULT CIRCUMSTANCES Organic growth in sales of 8.3% and inorganic growth KEY EARNING FIGURES (in EUR million) Sales 9M 2022 1,434.9 9M 2021 1,296.4 ∆ in % 10.7 of 2.4% EBITDA 146.1 157.1 -7.0 Construction/Infrastructure, Engineering, Meta
Slide 27: INDUS Capital Structure
INDUS CAPITAL STRUCTURE SOLID BALANCE SHEET FIGURES SUPPORT COMPANY DEVELOPMENT EQUITY RATIO EUR 130.8 million 646.8 37.5% EUR million CASH AND CASH NET DEBT (as of September 30, 2022) EQUIVALENTS (as of September 30, 2022) (as of September 30, 2022) EQUITY SOLID FINANCING STRUCTURE ENSURES AGILITY
Slide 28: Revenue by Segment – 9M 2022
REVENUE BY SEGMENT – 9M 2022 INCREASE IN SALES IN FOUR SEGMENTS MEDICAL CONSTRUCTION/ AUTOMOTIVE ENGINEERING/ INFRASTRUCTURE TECHNOLOGY ENGINEERING LIFE SCIENCE METALS TECHNOLOGY +17.5% +22.0% +8.5% -10.8% Sales (in EUR million) +5.4% 397.0 380.5 350.5 338.0 311.9 323.0 213.0 189.9 110.6 116.6 9M 20
Slide 29: EBIT by Segment – 9M 2022
EBIT BY SEGMENT – 9M 2022 DEVELOPMENT MARKED BY SMA VALUE ADJUSTMENTS AND IMPAIRMENT MEDICAL CONSTRUCTION/ AUTOMOTIVE ENGINEERING/ INFRASTRUCTURE TECHNOLOGY ENGINEERING LIFE SCIENCE METALS TECHNOLOGY -13.5% +43.0% -18.2% <-100% EBIT (in EUR million) <-100% 54.2 46.9 39.6 35.8 29.3 27.7 -41.5 -92.2 9
Slide 30: Adjusted EBIT by Segment – 9M 2022
ADJUSTED EBIT* BY SEGMENT – 9M 2022 SIGNIFICANT IMPROVEMENT IN THREE OUT OF FIVE SEGMENTS EBIT adjusted for SMA value adjustments (EUR 37.1 million) and impairment losses from impairment testing (EUR 44.4 million) MEDICAL CONSTRUCTION/ AUTOMOTIVE ENGINEERING/ INFRASTRUCTURE TECHNOLOGY ENGINEERING LI
Slide 31: Construction/Infrastructure – 9M 2022
CONSTRUCTION/INFRASTRUCTURE – 9M 2022 OPERATING LEVEL REMAINS HIGH (in EUR million) 9M 2022 9M 2021 ∆ in % Revenue with external third parties 397.0 338.0 17.5 Inorganic growth in sales from acquisitions (WIRUS) of 6.7% and EBITDA 74.8 68.4 9.4 organic growth of 10.8% Depreciation/amortization -15
Slide 32: Automotive Technology – 9M 2022
AUTOMOTIVE TECHNOLOGY – 9M 2022 DECONSOLIDATION OF SMA AFTER APPLICATION FOR INSOLVENCY PROCEEDINGS (in EUR million) 9M 2022 9M 2021 ∆ in % Revenue with external third parties 189.9 213.0 -10.8 Decrease in turnover exclusively due to sale of WIESAUPLAST at the EBITDA -51.8 -13.6 <-100 end of 2021
Slide 33: Engineering – 9M 2022
ENGINEERING – 9M 2022 SOLID INORGANIC AND ORGANIC GROWTH IN SALES AND ADJUSTED EBIT (in EUR million) 9M 2022 9M 2021 ∆ in % Revenue with external third parties 380.5 311.9 22.0 Impressive organic growth of 7.1% and inorganic growth of 14.9% EBITDA 62.1 52.2 19.0 HEIBER+SCHRÖDER (since April 2022
Slide 34: Medical Engineering/Life Science – 9M 2022
MEDICAL ENGINEERING/LIFE SCIENCE – 9M 2022 RECOVERY HAMPERED BY COST INCREASES (in EUR million) 9M 2022 9M 2021 ∆ in % Revenue with external third parties 116.6 110.6 5.4 Increase in sales especially in fields of optical lenses and EBITDA 15.6 16.7 -6.6 rehabilitation technology Depreciation/amort
Slide 35: Metals Technology – 9M 2022
METALS TECHNOLOGY – 9M 2022 ENCOURAGING DEVELOPMENT IN SALES AND INCOME (in EUR million) 9M 2022 9M 2021 ∆ in % Revenue with external third parties 350.5 323.0 8.5 Significant increase in sales by almost all segment companies, EBITDA 53.1 39.2 35.5 especially those in metal processing and forming
Slide 36: Agenda
AGENDA 1 MATERIAL DEVELOPMENTS – 9M 2022 2 OUR DNA 3 PARKOUR – UPDATE 4 INDUS IN FIGURES – 9M 2022 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 36
Slide 37: Economic Environment – Outlook for 2022
ECONOMIC ENVIRONMENT – OUTLOOK FOR 2022 INCREASINGLY GLOOMY OUTLOOK EXPECTED FOR GERMAN ECONOMY Unexpectedly slight growth in German economy in third quarter contrary to forecast for recession Private household spending declining around the world and resulting deterioration in consumer sentiment
Slide 38: INDUS Continues to Perform Well Despite Gloomy Environment
INDUS CONTINUES TO PERFORM WELL DESPITE GLOOMY ENVIRONMENT POSITIVE OPERATING PERFORMANCE EXPECTED UP TO THE END OF 2022 Further effects of the Russia-Ukraine war noticeable in materials shortages, significant price increases for primary materials, and rising energy costs Stronger impact expecte
Slide 39: Updated Forecast for 2022 (November 2022)
UPDATED FORECAST FOR 2022 (NOVEMBER 2022) OPERATING PERFORMANCE IN THE FULL YEAR SLIGHTLY ABOVE EXPECTATIONS SO FAR FORECAST FOR EBIT: EUR 15–30 MILLION GROUP 2021 FORECAST – NOVEMBER 2022 Group sales (in EUR billion), segment sales (in EUR million) 1.74 1.90–2.00 EBIT (in EUR million) 115.4 15–30 A
Slide 40: Updated Forecast for 2022 by Segment
UPDATED FORECAST FOR 2022 BY SEGMENT (NOVEMBER 2022) OPERATING PERFORMANCE IN THE FULL YEAR SLIGHTLY ABOVE EXPECTATIONS SO FAR CONSTRUCTION/ AUTOMOTIVE MEDICAL ENGINEERING/LIFE METALS SEGMENTS ENGINEERING INFRASTRUCTURE TECHNOLOGY SCIENCE TECHNOLOGY FORECAST FORECAST FORECAST FORECAST FORECAST 2021
Slide 41: Our Seven-Point Target for 2025
OUR SEVEN-POINT TARGET FOR 2025 LONG-TERM STRATEGY CONFIRMED 1 55 to 60 portfolio companies with sales significantly over EUR 2 billion. 2 EBIT target margin of 10% once again reliably achieved. 3 Growth industries clearly represented in the portfolio. 4 Innovation established as growth driver in th
Slide 42: Agenda
AGENDA 1 MATERIAL DEVELOPMENTS – 9M 2022 2 OUR DNA 3 PARKOUR – UPDATE 4 INDUS IN FIGURES – 9M 2022 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 42
Slide 43: Dividend Policy and History
DIVIDEND POLICY AND HISTORY DIVIDEND PROPOSAL OF EUR 1.05 IN LINE WITH LONG-TERM DIVIDEND POLICY Regular participation of shareholders in At least 50% of profits retained to Up to 50% of profits distributed business success strengthen the company 3.8% 60.0% 51.9% 48.0% 3.2% 42.7% 43.9% 41.9% 2.7% 2.
Slide 44: Shareholder Structure
SHAREHOLDER STRUCTURE ANCHOR SHAREHOLDERS SUPPORT THE LONG-TERM CORPORATE STRATEGY SHAREHOLDER STRUCTURE OF INDUS HOLDING AG WKN/ISIN 620010/DE 000 620 010 8 Foundation/IPO 1986/1995 Financial year Jan. 1 – Dec. 31 VERSICHERUNGSKAMMER Share capital EUR 69.9 million BAYERN 17.7% H. J. SELZER ET AL. 5
Slide 45: Agenda
AGENDA 1 MATERIAL DEVELOPMENTS – 9M 2022 2 OUR DNA 3 PARKOUR – UPDATE 4 INDUS IN FIGURES – 9M 2022 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 45
Slide 46: INDUS in Figures: Income Q3 2022
INDUS IN FIGURES INCOME – Q3 2022 SALES (in EUR million) EBIT (in EUR million) EBIT MARGIN (in %) +9.8% 490.0 446.1 <-100% -13.1pp 22.2 5.0 -39.9 -8.1 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 46
Slide 47: Presentation of Adjusted EBIT – Q3 2022
INDUS IN FIGURES PRESENTATION OF ADJUSTED EBIT – Q3 2022 EBIT adjusted for SMA value adjustments (EUR 37.1 million) and impairment losses from impairment testing (EUR 39.8 million) ADJUSTED EBIT (in EUR million) ADJUSTED EBIT MARGIN (in %) +21.7% +0.8pp 30.4 37.0 6.8 7.6 Q3 2021 Q3 2022 Q3 2021 Q3 2
Slide 48: Revenue by Segment – Q3 2022
REVENUE BY SEGMENT – Q3 2022 INCREASE IN SALES IN FOUR SEGMENTS MEDICAL CONSTRUCTION/ AUTOMOTIVE ENGINEERING/ INFRASTRUCTURE TECHNOLOGY ENGINEERING LIFE SCIENCE METALS TECHNOLOGY +11.2% +17.9% +10.5% -4.2% Sales (in EUR million) +4.8% 121.8 135.5 133.3 113.1 104.3 115.3 69.5 66.6 37.4 39.2 Q3 2021 Q
Slide 49: EBIT by Segment – Q3 2022
EBIT BY SEGMENT – Q3 2022 SIGNIFICANT IMPROVEMENT IN METALS TECHNOLOGY SEGMENT MEDICAL CONSTRUCTION/ AUTOMOTIVE ENGINEERING/ INFRASTRUCTURE TECHNOLOGY ENGINEERING LIFE SCIENCE METALS TECHNOLOGY EBIT (in EUR million) -57.0% -79.4% +56.8% <-100% <-100% 18.6 16.0 12.7 8.0 -22.0 -51.8 3.3 3.2 -8.8 8.1 Q
Slide 50: Adjusted EBIT by Segment Q3 2022
ADJUSTED EBIT* BY SEGMENT Q3 2022 SIGNIFICANT IMPROVEMENT IN THREE OUT OF FIVE SEGMENTS EBITs adjusted for value adjustments SMA (EUR 37.1 million) and impairment losses from impairment test (EUR 39.8 million) MEDICAL CONSTRUCTION/ AUTOMOTIVE ENGINEERING/ INFRASTRUCTURE TECHNOLOGY ENGINEERING LIFE S
Slide 51: Thank You
THANK YOU FOR LISTENING! From left to right: Dr. Jörn Großmann (Board of Management) Rudolf Weichert (Board of Management) Dr.-Ing. Johannes Schmidt (Chairman of the Board) Axel Meyer (Board of Management) 51
Slide 52: Contact: Investor Relations / Public Relations
CONTACT IR/PR 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 52
Slide 53: Financial Calendar
FINANCIAL CALENDAR FINANCIAL EVENTS IN 2023 DATE EVENT LOCATION February 23, 2023 Preliminary figures on FY 2022 Publication March 23, 2023 Annual report 2022 Publication May 11, 2023 Interim report Q1/3M 2023 Publication May 17, 2023 Annual Shareholders’ Meeting 2023 Event in Cologne August 10, 202
Slide 54: INDUS Portfolio Companies: Construction/Infrastructure
INDUS PORTFOLIO COMPANIES CONSTRUCTION/INFRASTRUCTURE COMPANY DESCRIPTION LOCATION Anchoring and reinforcement technology Dielsdorf (CH), Cologne (DE), Lauchhammer (DE), Rossens (CH) Anchoring and reinforcement technology Neuss (DE), Halle (DE) Sealants made from silicone and acrylic Reichshof/Hahn
Slide 55: INDUS Portfolio Companies: Automotive Technology
INDUS PORTFOLIO COMPANIES AUTOMOTIVE TECHNOLOGY COMPANY DESCRIPTION LOCATION Mudau (DE), Grand Rapids (US), Ergene/Tekirdag (TR), Nuenen (NL), Heating and air conditioning systems for vehicles Weert (NL) Innovative cold extrusion parts, turning parts and locking screws Hillesheim (DE), Taicang (CN)
Slide 56: INDUS Portfolio Companies: Engineering
INDUS PORTFOLIO COMPANIES ENGINEERING COMPANY DESCRIPTION LOCATION Robotic hands and automation systems for manufacturers Overath (DE), Plymouth (US), Wörth an der Donau (DE) Specialist in logistics and material flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmalkalden (DE) Burbach (DE),
Slide 57: INDUS Portfolio Companies: Medical Engineering/Life Science
INDUS PORTFOLIO COMPANIES MEDICAL ENGINEERING/LIFE SCIENCE COMPANY DESCRIPTION LOCATION Assembly of non-woven fabrics for medical, cosmetic, cleaning and care applications Goldbach (DE), Elterlein (DE) Miniaturized precision optics :LWWHQEDFK &+ .DÉ 65% 6DXHUODFK '( Bamberg (DE), Glauchau (DE), Maas
Slide 58: INDUS Portfolio Companies: Metals Technology
INDUS PORTFOLIO COMPANIES METALS TECHNOLOGY COMPANY DESCRIPTION LOCATION Carbide tools for road construction and mining, tunneling and specialist civil engineering, Aichhalden (DE), Charlotte (US), Taicang (CN) agriculture, etc. Metal and lead parts, components, switch cabinets, machine casings Dess
Slide 59: Disclaimer
INDUS HOLDING AG DISCLAIMER This presentation was prepared by INDUS Holding AG (hereafter INDUS) and is intended for information purposes only. It constitutes neither an offer nor a solicitation to buy or sell securities and cannot be deemed a sufficient or suitable basis for making any decision. Al