Indus Holding Ag · XETR:INH
Indus — H1 2022 Earnings Presentation
53 slides from Indus's earnings presentation, Aug 10, 2022
Slide 1: INDUS H1 2022 results, Bergisch Gladbach
[INDUS] Bergisch Gladbach, August 10, 2022
Slide 2: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS — H1 2022 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES — H1 2022 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX Nou FfFwn =
Slide 3: Material developments H1 2022
MATERIAL DEVELOPMENTS —- H1 2022 [INDUS] ROBUST DEVELOPMENT OF INDUS PORTFOLIO COMPANIES IN A CHALLENGING MARKET ENVIRONMENT — Significant organic sales growth mainly due to inflation-related passing on of price increases at several portfolio companies — Strong burdens from increases in material and
Slide 4: Sales, EBIT and EBIT margin H1 2022
+11.1% 944.9 850.3 -9.2% -1.2pp 56.3 51.1 6.6 5.4 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 4
Slide 5: Net debt, equity ratio and operating cash flow
+31.4% 662.3 504.2 -3.9pp <-100% 42.4 38.5 22.8 -39.7 H1 2021 H1 2022 Dec. 31, 2021 June 30, 2022 Dec. 31, 2021 5
Slide 6: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS — H1 2022 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES — H1 2022 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX Nou FfFwn =
Slide 7: The SME holding company
THE SME HOLDING COMPANY [INDUS] BUYING AND DEVELOPING HIDDEN CHAMPIONS AMONG SMES We primarily acquire owner- aan = managed companies operating in Ps | lth PFT) the manufacturing SME sector. We ER Sse ie Suide their long-term orientation : i A JL | and support their entrepreneurial development.
Slide 8: INDUS business model
INDUS BUSINESS MODEL [INDUS] GERMAN SMES ARE OUR PASSION “= HorNGRouP — INDUS is a leading specialist in the long-term investment in and development of companies in the SME sector of the German- speaking countries in — Investing in hidden champions in the manufacturing SME sector — Diversified portf
Slide 9: INDUS business model: roles
INDUS BUSINESS MODEL INDUS AS A... MAJORITY SHAREHOLDER — Long-term perspective — Operational responsibility remains with the portfolio companies — Preserving corporate culture Sai Oil HOLDING COMPANY — Managerial accounting at portfolio companies — Financing activities as a portfolio manager — Acco
Slide 10: Sales by region
Germany EU Rest of world Germany EU Rest of world 10,910 31
Slide 11: Creating sustainable value
CREATING SUSTAINABLE VALUE OUR PROMISE TO OUR STAKEHOLDERS SHAREHOLDERS PORTFOLIO COMPANIES Shareholders can invest in a highly diversified managed corporate portfolio in the SME sector of the German speaking countries — with a reliable dividend from a stable bottom line. Companies in our Group enjo
Slide 12: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS — H1 2022 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES — H1 2022 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX Nou fF wn = 12
Slide 13: The PARKOUR strategy
THE PARKOUR STRATEGY [INDUS] IMPROVING PERFORMANCE EXPANSION IN THE sy. INNOVATION GROWTH INDUSTRIES A Ok TECHNOLOGICAL CHANGE | + A>) DIGITALIZATION OPERATIONAL INTERNATIONALIZATION EXCELLENCE IMPROVING STRIVING FOR PERFORMANCE SUSTAINABILITY STRENGTHENING 1 PORTFOLIO STRUCTURE 2 DRVINGIINN OVATION
Slide 14: Portfolio development 2016-2022
2017 2019 2021 2016 2018 2020 2022 14
Slide 15: Investment in growth industries
INVESTMENT IN GROWTH INDUSTRIES [INDUS] 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 — Construction technology F
Slide 16: HELD Group
HELD GROUP [INDUS] 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 syst
Slide 17: The PARKOUR strategy: initiatives
THE PARKOUR STRATEGY [INDUS] 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 v STATUS CHECK @ STA
Slide 18: Timeline 2010-2022
2010 2015 2016 2017 2018 2019 2020 2021 2022 18
Slide 19: Key elements of sustainable practices
KEY ELEMENTS OF SUSTAINABLE PRACTICES [INDUS] INDUS ON TRACK TO CLIMATE NEUTRALITY ionanaeathan i) SUSTAINABILITY INDUS CODE OF CONDUCT ritoddoplalsegper sepator OPERATIONAL BOARD OF “operational excellence” pillar of the EXCELLEN CE MANAG EM ENT SEE Jom : COMPENSATION . ... includes sustainability
Slide 20: Commitment to sustainability
#2 SUSTA[IN] COMMITMENT TO SUSTAINABILITY IN A VARIETY OF AREAS AURORA LESS PACKAGING AURORA switches to reusable packaging systems to save resources and loading meters. SUSTATIN] MIGUA MIGOGREEN MIGUA proactively includes its employees in finding and implementing sustainability activities with the
Slide 21: ISS ESG rating
ISS ESG RATING [INDUS] 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 Corporate ESG — _ INDUS received a "C+" rating in “Corporate ESG Performance” Perfo rmance and hence al
Slide 22: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS — H1 2022 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES — H1 2022 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX Naoufwn = 22
Slide 23: Key earning figures
KEY EARNING FIGURES (in EUR million) H1 2022 H1 2021 ∆ in % − Sales 944.9 850.3 11.1 − EBITDA 102.5 102.4 0.1 EBIT 51.1 56.3 -9.2 EBIT margin (in %) 5.4 6.6 -1.2pp − 41.1 46.5 -11.6 EBT Earnings after taxes 20.7 28.7 -27.9 − CASH FLOW KEY FIGURES Operating cash flow -39.7 22.8 <-100 Cash flow from o
Slide 24: INDUS capital structure
INDUS CAPITAL STRUCTURE [INDUS] SOLID BALANCE SHEET FIGURES SUPPORT COMPANY DEVELOPMENT EQUITY Ei eu VTS £3 ition 662.3 38.5% ‘cn i C= wy = 801.9 EUR million EQUITY (as of June 30, 2022) 24
Slide 25: Current sector environment and outlook for 2022
CURRENT SECTOR ENVIRONMENT & OUTLOOK FOR 2022 CLEAR DETERIORATION IN ALL SECTORS L CONSTRUCTION! INFRASTRUCTURE Strongly deteriorated outlook since April 2022 for the year 2022 Continued positive development of commercial and public construction. Residential construction now declining due to changed
Slide 26: Segment sales H1 2022
+21.0% +24.3% +7.5% -14.1% +5.7% 261.5 247.2 235.2 216.2 198.8 218.7 143.5 123.3 73.2 77.4 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 26
Slide 27: Segment EBIT H1 2022
+9.3% +31.3% +37.2% <-100% -13.8% 35.6 38.9 19.8 26.0 19.6 26.9 -19.5 -40.4 5.8 5.0 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 27
Slide 28: Construction/Infrastructure segment
(in EUR million) H1 2022 H1 2021 ∆ in % Revenue with external third parties 261.5 216.2 21.0 − EBITDA 49.1 44.6 10.1 Depreciation/amortization -10.2 -9.0 -13.3 − EBIT 38.9 35.6 9.3 EBIT margin (in %) 14.9 16.5 -1.6pp − Investments 4.6 39.8 -88.4 − +21.0% 16.5% 14.9% − +9.3% 261.5 216.2 35.6 38.9 − −
Slide 29: Automotive Technology segment
(in EUR million) H1 2022 H1 2021 ∆ in % − Revenue with external third parties 123.3 143.5 -14.1 EBITDA -25.1 -6.3 <-100 Depreciation/amortization -15.3 -13.2 -15.9 − EBIT -40.4 -19.5 <-100 EBIT margin (in %) -32.8 -13.6 -19.2pp Investments 12.1 10.6 14.2 − -14.1% <-100 % − 143.5 123.3 -19.5 -40.4 -1
Slide 30: Engineering segment
(in EUR million) H1 2022 H1 2021 ∆ in % Revenue with external third parties 247.2 198.8 24.3 − EBITDA 38.2 30.5 25.2 − Depreciation/amortization -12.2 -10.7 -14.0 EBIT 26.0 19.8 31.3 − EBIT margin (in %) 10.5 10.0 0.5pp Investments 63.8 28.8 >100 − − +24.3% 10.0% 10.5% +31.3% 247.2 − 198.8 − 19.8 26
Slide 31: Medical Engineering/Life Science segment
(in EUR million) H1 2022 H1 2021 ∆ in % Revenue with external third parties 77.4 73.2 5.7 − EBITDA 10.2 10.9 -6.4 Depreciation/amortization -5.2 -5.1 -2.0 − EBIT 5.0 5.8 -13.8 − EBIT margin (in %) 6.5 7.9 -1.4pp Investments 3.1 6.5 -52.3 − − +5.7% 7.9% 6.5% 73.2 77.4 -13.8% − 5.8 5.0 − − H1 2021 H1
Slide 32: Metals Technology segment
(in EUR million) H1 2022 H1 2021 ∆ in % Revenue with external third parties 235.2 218.7 7.5 − EBITDA 34.8 27.2 27.9 Depreciation/amortization -7.9 -7.6 -3.9 − EBIT 26.9 19.6 37.2 EBIT margin (in %) 11.4 9.0 -2.4pp Investments 2.5 3.9 -35.9 − − +7.5% 11.4% 9.0% +37.2% 218.7 235.2 − 26.9 − 19.6 − H1 2
Slide 33: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS — H1 2022 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES — H1 2022 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX Nou FfFWwWN =
Slide 34: Economic environment: outlook for 2022
ECONOMIC ENVIRONMENT — OUTLOOK FOR 2022 [INDUS] OUTLOOK BECOMING INCREASINGLY GLOOMY — (Continuation of the economic downward trend since beginning of the Russia-Ukraine war — Gross domestic product stagnated in Germany in the second quarter of 2022 compared with the previous year — _ Rising interes
Slide 35: High risks: outlook remains cautious
HIGH RISKS - OUTLOOK REMAINS CAUTIOUS [INDUS] PORTFOLIO COMPANIES WILL FEEL SIGNIFICANT CHALLENGES FROM THE ECONOMIC ENVIRONMENT — (Currently intense investigation into series suppliers’ future — Increasing risk for impairments in the third quarter due to rising capital costs and macroeconomic uncer
Slide 36: Forecast 2022 by segment
CONSTRUCTION/ AUTOMOTIVE MEDICAL ENGINEERING/LIFE METALS SEGMENTS GROUP ENGINEERING INFRASTRUCTURE TECHNOLOGY SCIENCE TECHNOLOGY 2021 PLAN 2021 PLAN 2021 PLAN 2021 PLAN 2021 PLAN 2021 PLAN Group sales (in EUR billion), Slight 1.74 1.90–2.00 451.6 Rising sales 281.9 Slight rise 438.9 Steep rise 148.7
Slide 37: Our seven-point target for 2025
OUR SEVEN-POINT TARGET FOR 2025 [INDUS] 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 driv
Slide 38: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS — H1 2022 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES — H1 2022 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX Nou FfFwn =
Slide 39: Dividends and dividend yield
3.8% 60.0% 51.9% 48.0% 3.2% 42.7% 43.9% 41.9% 2.7% 2.6% 2.5% 2.5% 2.1% 24.6% 77.2 83.5 70.1 76.3 €1.50 €1.50 79.6 54.4 €1.20 €1.35 €1.05 35.8 €0.80 €0.80 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 Dividends Dividend yield INDUS Holding AG balance sheet profit* Distribution
Slide 40: Shareholder structure
VERSICHERUNGSKAMMER BAYERN 17.7% H. J. SELZER ET AL. 5.7% WIRTGEN INVEST HOLDING 3.7% EPINA 2.7% FREE FLOAT* 70.2% 40
Slide 41: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS — H1 2022 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES — H1 2022 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX NaoufFwn = 41
Slide 42: Q2 sales, EBIT and margin
+11.2% 500.1 449.9 -2.9% -0.9pp 31.3 30.4 7.0 6.1 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 42
Slide 43: Q2 segment sales
+14.1% +30.2% +7.5% -11.3% +2.9% 120.2 137.2 138.1 120.5 106.1 112.1 73.7 65.4 37.6 38.7 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 43
Slide 44: Q2 segment EBIT
+1.9% +65.3% -1.9% -26.9% -68.4% 20.8 21.2 15.7 10.8 10.6 2.6 1.9 9.5 -9.8 -16.5 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 44
Slide 45: Thank you for listening
FOR LISTENING! From left to right: Dr. Jorn Gro&mann (Board of Management) Rudolf Weichert (Board of Management) Dr.-Ing. Johannes Schmidt (Chairman of the Board) Axel Meyer (Board of Management) INDUS
Slide 46: Contact
CONTACT CORPORATE COMMUNICATION INVESTOR RELATIONS DAFNE SANAC Ay +49 (0) 2204-4000-32 04 investor.relations@indus.de PUBLIC RELATIONS NINA WOLF ~) KC +49 (0) 2204-4000-73 presse@indus.de [INDUS] 46
Slide 47: Financial calendar
FINANCIAL CALENDAR FINANCIAL EVENTS IN 2022 [INDUS] DATE EVENT LOCATION March 23, 2022 Publication of the Annual Report for the 2021 fiscal year Publication March 24, 2022 Analysts and investors conference for full year 2021 Virtual May 11, 2022 Publication of the interim report for Q1 2022 Publicat
Slide 48: INDUS portfolio companies: Infrastructure
HORA aueARTFOLIO COMPANIES [INDUS] INFRASTRUCTURE COMPANY DESCRIPTION LOCATION ancotech Anchoring and reinforcement technology Dielsdorf (CH), Cologne (DE), Lauchhammer (DE), Rossens (CH) Beromsx' Anchoring and reinforcement technology Neuss (DE), Halle (DE) Sealants made from silicone and acrylic R
Slide 49: INDUS portfolio companies: Automotive Technology
INDUS PORTFOLIO COMPANIES AUTOMOTIVE TECHNOLOGY COMPANY DESCRIPTION [INDUS] LOCATION AURORA tt Heating and air conditioning systems for vehicles Mudau (DE), Grand Rapids (US), Ergene/Tekirdag (TR), Nuenen (NL), Weert (NL) mustew(o) Innovative cold extrusion parts, turning parts and locking screws Hi
Slide 50: INDUS portfolio companies: Engineering
INDUS PORTFOLIO COMPANIES [INDUS] ENGINEERING COMPANY DESCRIPTION LOCATION ASS< Robotic hands and automation systems for manufacturers Overath (DE), Plymouth (US), Worth an der Donau (DE) BUDDE Specialist in logistics and material flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmalkalden
Slide 51: INDUS portfolio companies: Medical Engineering/Life Science
INDUS PORTFOLIO COMPANIES MEDICAL ENGINEERING/LIFE SCIENCE COMPANY [INDUS] DESCRIPTION LOCATION imeco Assembly of non-woven fabrics for medical, cosmetic, cleaning and care applications Goldbach (DE), Elterlein (DE), Lubati (PL) mikrcp Miniaturized precision optics Wittenbach (CH), Ka¢ (SRB), Sauerl
Slide 52: INDUS portfolio companies: Metals Technology
INDUS PORTFOLIO COMPANIES METALS TECHNOLOGY COMPANY DESCRIPTION [INDUS] LOCATION »BETEK Carbide tools for road construction and mining, tunneling and specialist civil engineering, agriculture, etc. Aichhalden (DE), Charlotte (US), Taicang (CN) oa Metal and lead parts, components, switch cabinets, ma
Slide 53: Disclaimer
INDUS HOLDING AG [INDUS] 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 deci