Indus Holding Ag · XETR:INH
Indus — H1 2020 Earnings Presentation
57 slides from Indus's earnings presentation, Aug 6, 2020
Slide 1: Presentation of the Results for the First Six Months of 2020
PRESENTATION OF THE RESULTS FOR THE FIRST SIX MONTHS OF 2020 Bergisch Gladbach, 6. August 2020
Slide 2: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - H1 2020 OUTLOOK AGM, INDUS SHARE & DIVIDENDS APPENDIX aurfwn = [INDUS]
Slide 3: Introducing the INDUS Board of Management
INTRODUCING THE INDUS BOARD OF MANAGEMENT BROAD EXPERTISE FROM GERMAN SMES Dr. Johannes Schmidt Chairman of the Board of Management Serving as a member of the Board of Management of INDUS Holding AG since January 2006. Took over as Chairman of ‘the Board of Management in July 2018. Responsibilities
Slide 4: INDUS Business Model
INDUS BUSINESS MODEL WE ARE PASSIONATE ABOUT SMES Horn upuayes \scnwenin REMEN WE... — are the leading specialist in long-term investment ___WANovEr [BERL ; sreoactak ese *M*? —\vscotouns) sondsast and development in the German SME Sector. asuse "se, scouts anttee | : — invest in SME Hidden Champion
Slide 5: Geographic Diversification
INDUS BUSINESS MODEL [INDUS] GEOGRAPHIC DIVERSIFICATION — INDUS HAS A PRESENCE IN OVER 30 COUNTRIES Breakdown of revenues by regions =Germany = Europe = Rest of the world Employees by regions = Germany = Europe = Rest of the world Revenue and employee figures and locations as of 31 Dec. 2019, Europe
Slide 6: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • 6
Slide 7: Long-Term Holding Perspective Ensures Stability
LONG-TERM HOLDING PERSPECTIVE ENSURES STABILITY [INDUS] BALANCED PORTFOLIO STRUCTURE BY YEAR, REVENUE AND REGION INDUS is a long-term investor Portfolio structure by years: Portfolio structure by revenues: Portfolio structure by regions: Focus on German SMEs . 74% > 10 years in the portfolio EUR 10
Slide 8: Creating Sustainable Value
CREATING SUSTAINABLE VALUE CONTINUE TO DELIVER ON OUR PROMISES SHAREHOLDERS PORTFOLIO COMPANIES They have the opportunity to invest in a broadly diversified managed portfolio of German- language SMEs - with a reliable dividend from a stable balance sheet. They get a secure framework for continuous d
Slide 9: Diversification as a Strategic Core Element
INDUS CONTENT DIVERSIFICATION AS A STRATEGIC CORE ELEMENT Construction/ Automotive Engineering Medical Engineering Metals Technology Infrastructure 11 Technology 12 portfolio and Life Science 10 portfolio portfolio companies 8 portfolio companies companies 5 portfolio companies companies
Slide 10: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - H1 2020 OUTLOOK AGM, INDUS SHARE & DIVIDENDS APPENDIX aurfwn = [INDUS] 10
Slide 11: Strategy
STRATEGY [INDUS] THE NAME STANDS FOR GREATER AGILITY EXPANSION IN THE oy, INNOVATION GROWTH INDUSTRIES 2@s uy TECHNOLOGICAL CHANGE + LATS J) 4+ - --\ DIGITALIZATION ~ [OAK: % OPERATIONAL INTERNATIONALIZATION EXCELLENCE
Slide 12: Our Goals for the Next Years
OUR GOALS FOR THE NEXT YEARS [INDUS] CONTINUE TO DEVELOP THE INVESTMENT PORTFOLIO INDUS offers its shareholders a managed portfolio of attractive medium-sized companies. We therefore want to further develop the INDUS portfolio to ensure that we will have a sustainable and viable portfolio in the fut
Slide 13: Portfolio Acquisitions
TR Metalltechnik OFA acquires ROLKO acquires trading company for Ability Products medical aids Inc., USA WIESAUPLAST- PMC de México* Portfolio company acquires supplier of air-conditioning devices 13
Slide 14: Package of Measures
PACKAGE OF MEASURES [INDUS] FOCUS: PORTFOLIO OPTIMIZATION & SUSTAINABLE EARNINGS IMPROVEMENT J PORTFOLIO ~" OPTIMIZATION % oa ‘ : BGs » ie Cn | raat a SUSTAINABLE EARNINGS Start > FOCUS ON IMPROVEMENT ve Cc» GROWTH INDUSTRIES 14
Slide 15: Simon Kinetics
SIMON KINETICS [INDUS] MARCH 2020: INDUS SELLS FURNITURE FITTINGS OPERATIONS TO TITUS — The SIMON Group's “Kinetics” division is a premium supplier of high-quality furniture fittings systems and additionally focuses on “soft-close" and “push-to-open” »> SIMON gOw systems as well as special products
Slide 16: Kieback GmbH & Co. KG
KIEBACK GMBH & CO. KG [INDUS] JULY 2020: INDUS SELLS KIEBACK TO MANAGING DIRECTOR — KIEBACK specializes in small series production of sheet . . . . “| have got to know KIEBACK quite metal parts for niche and special vehicles and supplies <= KIEBACK areensitelinitieiteancimenind renowned manufacturer
Slide 17: Simon Systems
SIMON SYSTEMS [INDUS] ELECTROPLATING OF PLASTICS UNTIL THE END OF Q3 2020 CLOSED — The SIMON Group's “Systems” division is a systems supplier and supplies high-quality, predominantly electroplated plastic injection molded parts to renowned > SIMON OEMs and their suppliers. SYSTEMS — Plastic electrop
Slide 18: Bacher AG (CH)
BACHER AG (CH) [INDUS] REVIEW OF DECOMMISSIONING (COMPLETION OF CONSULTATION PROCESS IN AUGUST 2020) — The company BACHER is a supplier and manufacturer of assemblies and components for rail vehicles, and a long- standing partner of manufacturers and operators of rail vehicles in the European market
Slide 19: Purchase of Remaining Shares
PURCHASE OF REMAINING SHARES [INDUS] M+P, PEISELER, MBN AND SELZER r ‘SA, scquiston of further shares secures options for action Engineering = Planned acquisition of the shares of a former shareholder and former managing director = Acquisition of additional shares amounting to 14.5%*, current share:
Slide 20: Our Goals for the Next Years
OUR GOALS FOR THE NEXT YEARS [INDUS] TAKE THE GROUP TO THE NEXT TECHNOLOGY LEVEL We support the further development of the strategies of our portfolio companies with know-how and capital in the areas of innovation and digitalization, operational excellence and internationalization. 2. DRIVE INNOVATI
Slide 21: Strategic Initiatives
STRATEGIC INITIATIVES [INDUS] FOCUS 2 AND 3 2. DRIVE INNOVATION 3. INCREASE PE NCE Strengthen innovation Strengthen operational excellence Strengthen financial excellence Business Technology & innovation Production development / Conservative financial management marketing / sales Fields of work: Fie
Slide 22: Strengthening Operational Excellence in the Portfolio Companies (1/2)
STRENGTHENING OPERATIONAL EXCELLENCE IN THE PORTFOLIO COMPANIES (1/2) [ IN DUS] NEEDS-ORIENTED FURTHER TRAINING FOR MANAGERS ™ Sales excellence and success factors in a difficult market environment Sales 0 Alignment in sales ~ from revenue target to implementation planning B O aeantnens = Target-ori
Slide 23: Strengthening Operational Excellence in the Portfolio Companies (2/2)
STRENGTHENING OPERATIONAL EXCELLENCE IN THE PORTFOLIO COMPANIES (2/2) [ IN DUS] NEEDS-ORIENTED FURTHER TRAINING FOR MANAGERS = Transfer of methodological knowledge to carry out improvement activities and projects in the company Trainer level = Collecting of practical knowledge for the application of
Slide 24: Strategic Initiative: Strengthening Financial Excellence
STRATEGIC INITIATIVE “STRENGTHENING FINANCIAL EXCELLENCE” CONSERVATIVE FINANCIAL MANAGEMENT financial ex Strengt! Conservative financial management Fields of wo Financial stability and liquidity Qualification of the finance function Financial and controlling processes Working capital optimization Ob
Slide 25: Sustainability as a Key Element of the Strategy
SUSTAINABILITY AS A KEY ELEMENT OF THE STRATEGY THE FOLLOWING SEVEN OBJECTIVES HAVE BEEN ANCHORED AS THE FOCUS IVES: Seven essential pillars Resource efficiency Sustainable expansion and internal development of the investment portfolio Increase in efficiency through process innovation and developmen
Slide 26: Sustainability as an Integral Component
INDUS BUSINESS MODEL [INDUS] SUSTAINABILITY AS AN INTEGRAL COMPONENT ‘PRIME’ STATUS IN ISS ESG RATING ISS ESG Rating — Top position in ISS ESG rating for the fifth time — INDUS received a ‘C+' rating in ‘Corporate ESG Corporate ESG Performance’ and hence also ‘Prime’ status Performance — Top positio
Slide 27: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - H1 2020 OUTLOOK AGM, INDUS SHARE & DIVIDENDS APPENDIX aurfwn = [INDUS] 27
Slide 28: H1 2020 at a Glance
INDUS IN FIGURES H1 2020 AT A GLANCE SIGNIFICANT IMPACT OF THE CORONAVIRUS PANDEMIC & EXTRAORDINARY EFFECTS IN Q2 — Massive impact of the corona pandemic on the operating business in the second quarter — Negative revenue development of -11.7% (Q2 2020: -15.0%) — EBIT before impairments strongly infl
Slide 29: INDUS in Figures - Special Effects
INDUS IN FIGURES - SPECIAL EFFECTS [INDUS] IMPAIRMENT TEST AND "INTERMEDIATE SPURT" PROGRAMME OF MEASURES — Corona crisis as "triggering event" for impairment test (cf. also ESMA circular); following the planning process for critical investments, goodwill impairments of EUR 31.6 million were require
Slide 30: Special Effects in Detail
INDUS IN FIGURES - SPECIAL EFFECTS IN DETAIL PRESENTATION OF THE EFFECTS IN THE AUTOMOTIVE PRODUCTS & METALS TECHNOLOGY SEGMENTS Special effects (in Mio. EUR) Technolewy Technology Total Technolo Tecnology Total Personnel restructuring “1.2 to) Others “1.4 ) EBITDA effect -2.6 0 -2.6 Goodwill Impair
Slide 31: Cash Flow Statement January to 30 June 2020
INDUS IN FIGURES [INDUS] CASH FLOW STATEMENT FROM 1 JANUARY 2020 TO 30 JUNE 2020 29.0 135-1 au im i aw -0.8 “0.7 Investments in property, plant and equipment and Cash outflow intangible assets of EUR OPERATING CASH slightly 16.1 million below Hi of “FLOW SLIGHTLY below prior- the previous year ABOVE
Slide 32: Construction/Infrastructure in H1 2020
INDUS IN FIGURES [INDUS] CONSTRUCTION/INFRASTRUCTURE IN H1 2020 UNEXPECTEDLY GOOD TREND DESPITE COVID-19 — Revenues again up on H1 2019 — (Clearly disproportionate increase in operating result due to strong Q2 2019 — EBIT margin of 18.2% clearly up on previous year — Excellent results in the area of
Slide 33: Automotive Technology in H1 2020
INDUS IN FIGURES [INDUS] AUTOMOTIVE TECHNOLOGY IN H1 2020 SHARP DROP IN REVENUES AND NEGATIVE RESULT — Very sharp decline in sales in April and May as a result of the coronavirus pandemic; low recovery momentum in June = Goodwill impairments of EUR 29.2 million due to reduced future prospects — Non-
Slide 34: Engineering in H1 2020
INDUS IN FIGURES [INDUS] ENGINEERING IN H1 2020 CONSEQUENCES OF THE CORONAVIRUS PANDEMIC HAVE A SIGNIFICANT IMPACT — Declining revenues at all segment companies = Companies in the machine tool and automation sector and highly export-oriented portfolio companies particularly affected — Sluggish order
Slide 35: Medical Engineering / Life Science in H1 2020
INDUS IN FIGURES [INDUS] MEDICAL ENGINEERING / LIFE SCIENCE IN H1 2020 BRIGHTENING TOWARDS THE END OF THE SECOND QUARTER — Unexpectedly strong decline in revenues due to disruption of rehabilitation technology business and the absence of “normal” operations during the main months of the lockdown — F
Slide 36: Metals Technology in H1 2020
INDUS IN FIGURES [INDUS] METALS TECHNOLOGY IN H1 2020 SLIGHT DECLINE IN REVENUES Most companies in the segment experienced revenue declines in the second quarter due to the corona pandemic — Goodwill impairments of EUR 2.4 million due to deteriorated future prospects — Non-recurring expenses of EUR
Slide 37: Liquidity Secured
LIQUIDITY SECURED [INDUS] DIVERSIFIED FINANCING MIX AND BALANCED MATURITY PROFILE v Long-term, bilateral credit relationships with core banks ensure ability to act x No syndicated credit lines Main points of the financing: No collateral, strict equal treatment of len Financial liabilities Cash and c
Slide 38: Effects of COVID-19
EFFECTS OF COVID-19 CURRENT CONCLUSION Financial stability due to good equity base and proactive financial management Reduced risks due to geographically and content-wise diversified portfolio and agility of the SME structures Securing of the future viability of the portfolio companies by driving in
Slide 39: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - H1 2020 OUTLOOK AGM, INDUS SHARE & DIVIDENDS APPENDIX aurfwn = [INDUS] 39
Slide 40: General Outlook for 2020
GENERAL OUTLOOK FOR 2020 [INDUS] GENERAL CONDITIONS STRONGLY INFLUENCED BY THE EFFECTS OF THE COVID PANDEMIC — Continued high losses in the global economy due to the effects of the corona crisis — Recovery of the Chinese economy in the second quarter, weakness of the USA dominates the global economy
Slide 41: Guidance for the Group
GUIDANCE FOR THE GROUP INDUS SS evenue Revenue 2019 Forecast 2020 Operating result (EBIT, Operating result (EBIT) 2019 EUR 1,74 billion EUR 0 — 20 million EUR 117,9 million 41
Slide 42: 600.0 15% 150.0% 145.0% 15.0% 15.0% 140.0% 35.0% 500 500.0 500 130.0% 125.0% 510
600 600 600.0 600 15% 150.0% 145.0% 15.0% 15.0% 500 140.0% 135.0% 500 500.0 500 130.0% 125.0% 510 120.0% 115.0% 110.0% 105.0% 15% 400 100.0% 95.0% 400 400.0 400 90.0% 85.0% 10% 410 80.0% 75.0% 10.0% 10.0% 70.0% 65.0% 300 60.0% 55.0% 300 300.0 300 310 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 200 20.0% 15.
Slide 43: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN NUMBERS - H1 2020 OUTLOOK AGM, INDUS SHARE & DIVIDENDS APPENDIX aurfwn = [INDUS] 43
Slide 44: Virtual Annual Shareholders Meeting
VIRTUAL ANNUAL SHAREHOLDERS MEETING [INDUS] 13TH AUGUST 2020 AT 10.30 A.M. — The ANNUAL GENERAL MEETING will take place on 13th AUGUST 2020 on 10.30 a.m. — The SPEECH OF THE CHAIRMAN OF THE BOARD is accessible since 6th August 2020 on our website. — The BOARD OF MANAGEMENT and THE SUPERVISORY BOARD
Slide 45: Share and Dividend
SHARE AND DIVIDEND ANCHOR SHAREHOLDERS SUPPORT LONG-TERM COURSE OF BUSINESS WKNIISIN 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 increase 02.12.2013 Free float approx. 72% Stock exchange
Slide 46: Net profit in EUR millions
* Net profit in EUR millions 46
Slide 47: Thank You Very Much
THANK YOU VERY MUCH FOR YOUR ATTENTION! Starting on the left: Rudolf Weichert (Board member) Axel Meyer (Board member) Dr.-Ing. Johannes Schmidt (Chairman of the Board) @ Dr. Jorn Gro&mann (Board member) dial 47
Slide 48: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - H1 2020 OUTLOOK AGM, INDUS SHARE & DIVIDENDS APPENDIX aufFwWnN = [INDUS] 48
Slide 49: Contact
CONTACT INVESTOR RELATIONS DAFNE SANAC © +49 (0) 2204-4000-32 Ba investor.relations@indus.de [INDUS] PUBLIC RELATIONS JANA KULSCHBACH Ay +49 (0) 2204-4000-35 wa presse@indus.de 49
Slide 50: Financial Calendar
FINANCIAL CALENDAR PUBLICATION DATES 2020 [INDUS] DATE EVENT VENUE 30 March 2020 Publication of the Annual Report for the 2019 fiscal year Publication 30 March 2020 Press conference on the results for the 2019 fiscal year Online 31 March 2020 Analysts' conference on the 2019 fiscal year Online 14 Ma
Slide 51: INDUS Portfolio Companies - Construction/Infrastructure
INDUS PORTFOLIO COMPANIES [INDUS] 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 acryli
Slide 52: INDUS Portfolio Companies - Automotive Technology
INDUS PORTFOLIO COMPANIES AUTOMOTIVE TECHNOLOGY SEGMENT COMPANIES DESCRIPTION [INDUS] LOCATIONS AURORA tt Heating and air-conditioning systems for vehicles Mudau (DE), Grand Rapids (US), Istanbul (TR), Nuenen (NL), Oettingen (DE), Shanghai (CN), Weert (NL) asreyse? Innovative cold extrusion parts, t
Slide 53: INDUS Portfolio Companies - Engineering
INDUS PORTFOLIO COMPANIES ENGINEERING SEGMENT [INDUS] COMPANIES DESCRIPTION LOCATIONS ASS< Robotic hands and automation systems for manufacturers Overath (DE), Plymouth (US), Worth an der Donau (DE) BUDDE Specialist for logistics and material flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), S
Slide 54: INDUS Portfolio Companies - Medical Engineering/Life Science
INDUS PORTFOLIO COMPANIES MEDICAL ENGINEERING/LIFE SCIENCE [INDUS] COMPANIES DESCRIPTION LOCATIONS imeco Assembly of non-woven fabric products for medical, cosmetic, cleaning and personal hygiene products Hésbach (DE), Konigswalde (DE), Lubari (PL) mikrcp Miniaturized precision optics Wittenbach (CH
Slide 55: INDUS Portfolio Companies - Metals Technology
INDUS PORTFOLIO COMPANIES [INDUS] METALS TECHNOLOGY COMPANIES DESCRIPTION LOCATIONS Steel and aluminium building modules for the rail industry Reinach (CH) Carbide tools for road construction and mining, tunnel and underground construction, farming etc. Aichhalden (DE), Charlotte (US), Taicang (CN)
Slide 56: Economic Development 2019
ECONOMIC DEVELOPMENT 2019 THE REPORTING YEAR AT A GLANCE [INDUS] EARNINGS FIGURES 2019 2018 Ain% CASH FLOW FIGURES 2019 2018 Ain% Sales 1,742.8 1,710.8 1.9 Operating cash flow 167.7 96.0 74.7 EBITDA 225.7 218.1 3.5 Cash flow from operating EBIT before impairment 135.2 150.5 -10.2 activities 147.3 74
Slide 57: Disclaimer
INDUS HOLDING AG [INDUS] 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 f