Indus Holding Ag · XETR:INH
Indus — H1 2019 Earnings Presentation
49 slides from Indus's earnings presentation, Aug 13, 2019
Slide 1: Presentation of the Results for the First Half-Year 2019
PRESENTATION OF THE RESULTS FOR THE FIRST HALF-YEAR 2019 Bergisch Gladbach, 13 August 2019
Slide 2: Agenda
AGENDA VurFfwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - H1 2019 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS]
Slide 3: Business Model: We Are Passionate About SMEs
INDUS BUSINESS MODEL WE ARE PASSIONATE ABOUT SMES HORN i HAMBURG BREMEN HANOVER HE ne wuepack en's Gsn N+P SCHAFER ROLKOs =\REMKO OBUK®™ , "BUDDE RAGUSE DUSSELDORF eVULKAN INOX Migua® BETOMAX#* m pptetOSTER LER + INDUS HOLDING AG ae WE... SCHWERIN — are the leading specialist in long-term investment
Slide 4: INDUS Investments Are Present in More Than 30 Countries
INDUS BUSINESS MODEL [INDUS] INDUS INVESTMENTS ARE PRESENT IN MORE THAN 30 COUNTRIES GERMANY EUR 878.9 millions 7,789 employees EUROPE EUR 383.5 millions 1,499 employees REST OF THE WORLD EUR 448.4 millions 1,426 employees sales and employee figures and locations as at 31.12.2018, Europe = EU and Sc
Slide 5: Broad Portfolio as a Core Strategic Element
INDUS BUSINESS MODEL [INDUS] BROAD PORTFOLIO AS A CORE STRATEGIC ELEMENT CONSTRUCTION! AUTOMOTIVE- ENGINEERING MEDICAL ENGINEERING/ METALS- INFRASTRUCTURE TECHNOLOGY LIFE SCIENCE TECHNOLOGY INDUS COMPANIES INDUS COMPANIES INDUS COMPANIES INDUS COMPANIES INDUS COMPANIES BROAD POSITIONING ENSURES GREA
Slide 6: Universe of Financial Investors
INDUS BUSINESS MODEL UNIVERSE OF FINANCIAL INVESTORS Short to medium-term return-driven investments — Large Caps: Apax, Blackstone, KKR — Mid Caps: DBAG, 3i, Odewald = Small Caps: MBB Industries Investments in companies in special situations with no long-term intention — Aurelius — Bavaria Industrie
Slide 7: Decentralized Structure
INDUS BUSINESS MODEL [INDUS] DECENTRALIZED STRUCTURE INDUS Holding AG stuncaiceparring _ ) Portfolio companies Portfolio Management Independent operational management of the business — Supporting portfolio companies in strategic issues — Research and development — Promoting portfolio companies in th
Slide 8: Accompanying SME Hidden Champions in the Long Term
INDUS ACCOMPANYING SME HIDDEN CHAMPIONS IN THE LONG TERM a5 a BANK SianeuoipeR ...a5 a CONSULTANT ...5 a FINANZHOLDING — Company acquisitions — long-term holding perspective — Know-how — Financing tasks in shareholder — Investments in property, plant — Operational responsibility remains © — Strategi
Slide 9: Sustainability Remains Integral Component
INDUS BUSINESS MODEL SUSTAINABILITY REMAINS INTEGRAL COMPONENT SUSTAINABILITY REPORT 2018 CDP CLIMATE SCORING [INDUS] OECOM RATING Third INDUS _ : Sustainability Report aCe in accordance with SUSTAINABILITY the German Sustainability Code . INDUS obtained another “A” rating in 2018. 2018 CLIMATE CHAN
Slide 10: Agenda
AGENDA urFfwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - H1 2019 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 10
Slide 11: We're Going to the Next Level
STRATEGY [INDUS] WE'RE GOING TO THE NEXT LEVEL — The long-term path of "COMPASS 2020" and its core strategy of "Buy, hold & develop" is paying off. We have become bigger, more international and more efficient. — In keeping with our philosophy, the individual portfolio companies retain their independ
Slide 12: Because We Will Be Facing Growing Challenges
STRATEGY BECAUSE WE WILL BE FACING GROWING CHALLENGES — The global environment has become more unpredictable, worldwide competition is growing and digitalization is presenting enterprises with fundamentally new challenges. — In order for our portfolio companies to successfully master these tasks, th
Slide 13: The Name Stands for Greater Agility
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 3
Slide 14: Continue to Develop the Investment Portfolio
OUR GOALS FOR THE NEXT 7 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 f
Slide 15: Take the Group to the Next Technology Level
OUR GOALS FOR THE NEXT 7 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 INNOVA
Slide 16: Continue to Deliver on Our Promises to Our Stakeholders
OUR GOALS FOR THE NEXT 7 YEARS [INDUS] CONTINUE TO DELIVER ON OUR PROMISES TO OUR STAKEHOLDERS PERFORMANCE PROMISE SHAREHOLDERS 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. SELLING ENTRE
Slide 17: Our 7-Point Target for 2025
PARKOUR [INDUS] OUR 7-POINT TARGET FOR 2025 1. 55 to 60 investments with revenues > EUR 2.5 billion. 2. EBIT margin target of 10% reliably reached again. 3. Industries of the future are clearly reflected in the portfolio. 4. Innovation has established itself as a growth engine in the portfolio compa
Slide 18: Agenda
AGENDA VuirFwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - H1 2019 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 18
Slide 19: Overall View of the First Half-Year of 2019
INDUS IN FIGURES OVERALL VIEW OF THE FIRST HALF-YEAR OF 2019 CONSTRUCTION/INFRASTRUCTURE REACHES NEW RECORDS — AUTOMOTIVE TECHNOLOGY WEIGHS ON GROUP AS A WHOLE In total rather modest business performance of the Group in H1 2019 — Sales revenues up by 3.8%, EBIT down by 12.7% = Good trend for Constru
Slide 20: Statement of Income January 2019 to June 2019
INDUS IN FIGURES STATEMENT OF INCOME 1 JANUARY 2019 TO 30 JUNE 2019 [INDUS] B4L.7 876.5 Increase in SALES REVENUES mainly attributable to Construction/Infrastructure and Engineering Negative CHANGE IN INVENTORIES due to intensified working capital management | (of which 2.8% organic) EBIT MARGIN: 7.
Slide 21: H1 2019 at a Glance
INDUS IN FIGURES [INDUS] H1 2019 AT A GLANCE EARNINGS FIGURES H1 2019 _H1 2018 Ain% CASHFLOW FIGURES H12019 H12018 Ain% Sales 876.5 844.7 3.8 Operating cashflow 2th. -22.4 >100 EBITDA 109.5 109.4 0.1 Cash flow EBIT 66.5 76.2 -12.7 from operating activity 13.9 -33.5 >100 EBIT margin (in %) 7.6 9.0 -2
Slide 22: Statement of Cash Flows January to June 2019
INDUS IN FIGURES [INDUS] STATEMENT OF CASH FLOWS FROM 1 JANUARY 2019 TO 30 JUNE 2019 -10.5 13.9 -18.9 109.6 8 --------- A 0.2 100.0 Cash outflow at prior year level Investments in property, plant and equipment and Decline despite reduced OPERATING CASH FLOW CLEARLY intangible assets of EUR 25.4 repa
Slide 23: Operational Cash Flow January to June 2019
INDUS IN FIGURES OPERATIONAL CASH FLOW FROM 1 JANUARY 2019 TO 30 JUNE 2019 [INDUS] ee 3220 37-7 (-13.7%) Depreciation/amortization up by ne approx. EUR 8 million due to Thereof inventories Thereof trade accounts 24.4 IFRS 16 "Leases" and to a lesser EUR 10.5 million payable and other (>100%) extent
Slide 24: Segment Performance in the First Half of 2019
INDUS IN FIGURES [INDUS] SEGMENT PERFORMANCE IN THE FIRST HALF OF 2019 (COMPARED TO H1 2018) EBIT margins 216.3 213.6 207.5 190. 196.5 172.0 90-9 183.4 3.0 27.8 4.3 -5.1 Construction? Automotive Engineering Medical Engineering/ Metals Infrastructure Technology Life Science Technology Hi 2018: Sales
Slide 25: Construction/Infrastructure H1 2019
INDUS IN FIGURES [INDUS] CONSTRUCTION/INFRASTRUCTURE H1 2019 SEGMENT RESULT DRIVEN BY AIR-CONDITIONING DEVICES — Revenues again up on H1 2018 — Clearly disproportionate increase in operating result due to strong Q2 2019 — EBIT margin of 14.6% clearly up on previous year — Excellent result in air-con
Slide 26: Automotive Technology H1 2019
INDUS IN FIGURES [INDUS] AUTOMOTIVE TECHNOLOGY H1 2019 SEGMENT REVENUES AND EARNINGS ON THE DECLINE — Decline in sales revenues due to lower call-off figures and slowdown in demand at other segment companies (pre and post series production) — AtEUR-5.1 million, operating result down on previous year
Slide 27: Engineering H1 2019
INDUS IN FIGURES [INDUS] ENGINEERING H1 2019 SEGMENT STRENGTHENED BY MESUTRONIC — Increase in sales revenues generated by major plant manufacturers — Plant manufacturers with good capacity utilization until well into next year — Noticeable slowdown in demand at some smaller portfolio companies — Dis
Slide 28: Medical Engineering/Life Science H1 2019
INDUS IN FIGURES [INDUS] MEDICAL ENGINEERING/LIFE SCIENCE H1 2019 DISPROPORTIONATE EARNINGS GROWTH Revenue growth generated by almost all product areas — Disproportionate increase in operating result attributable to orthotic devices and medical stockings as well as rehabilitation equipment — Optical
Slide 29: Metals Technology H1 2019
INDUS IN FIGURES [INDUS] METALS TECHNOLOGY H1 2019 SLIGHT DECLINE IN REVENUES — Segment records slight decline in revenues — Mainly due to reduced revenues in carbide tool production and mining — Segment unable to repeat the exceptionally high revenues of the previous year — Lower revenues and under
Slide 30: Segments Outlook
INDUS SEGMENTS CONSTRUCTION/INFRASTRUCTURE — Segment aiming for new records; growth limited by shortage of skilled labor — Excellent margin again expected AUTOMOTIVE TECHNOLOGY — No market recovery, segment situation becoming tighter — Automotive crisis now also affects investments before and after
Slide 31: Outlook for 2019: Framework Conditions and INDUS Group
OUTLOOK FOR 2019 FRAMEWORK CONDITIONS AND INDUS GROUP — Further intensification of competitive conditions: subdued economic expectations and latent political risks such as trade dispute and Brexit — Automotive crisis now affects not only series production suppliers but also pre- and post series comp
Slide 32: Outlook for 2019: Guidance for the Group
OUTLOOK FOR 2019 GUIDANCE FOR THE GROUP [INDUS] VERY DIFFICULT ENVIRONMENT FOR ENTIRE AUTOMOTIVE TECHNOLOGY SEGMENT OVERALL SUBDUED EXPECTATIONS FOR FISCAL YEAR 2019 GROUP ACTUAL 2018 PLAN 2019 Sales EUR 1.71 billion EUR 1.72 - 1.77 billion EBIT EUR 134.7 million EUR-+56—+62-4HHER EUR 152 - 158 mill
Slide 33: Agenda
AGENDA [INDUS] INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - H1 2019 AND OUTLOOK DIVIDEND AND SHARE APPENDIX uirFfwn = 35)
Slide 34: Very Stable Shareholder Base
SHARE AND DIVIDEND [INDUS] VERY STABLE SHAREHOLDER BASE ANCHOR SHAREHOLDERS SUPPORT LONG-TERM COURSE OF BUSINESS Shareholder base WKN/ISIN 620010/DE 000 620 010 8 Established/IPO 1986/1995 19.4% Fiscal year 01.01. — 31.12. Capital stock EUR 63,6 milion Number of shares 24,450,509 no-name bearer shar
Slide 35: Dividend for the Fiscal Year 2018
SHARE AND DIVIDEND [INDUS] DIVIDEND FOR THE FISCAL YEAR 2018 Shareholders regularly A good 50% of profits Up to 50% participate in successful are retained to strengthen of profits business performance the company are distributed wee a. 3% “2 Th 43. = — % 3.1% 2.7% 2.6% 2.5% 3.9% e—___¢ — S. 5 e 70.1
Slide 36: Fiscal Year 2019: High Pressure on Share Price
SHARE AND DIVIDEND FISCAL YEAR 2019: HIGH PRESSURE ON SHARE PRICE AFTER SIGNIFICANT RECOVERY* 25 20 6 10 Year-end price 2018: EUR 39.00 High (closing price) 01.05.2019: EUR 47.45 “10 4 Low (closing price) 22.07.2019: EUR 34.40 a5 J 31.12.2018 31.03.2019 30.06.2019 ‘| —— INDUS Holding AG — DAX Kursin
Slide 37: Coverage: Equity Research
SHARE AND DIVIDEND COVERAGE EQUITY RESEARCH — Six banks and investment houses are currently watching INDUS shares. — The average price target is currently EUR 51.33 (median at EUR 52.00). ANALYST ESTIMATES AND RECOMMENDATIONS [INDUS] Bankhaus Lampe Commerzbank 37
Slide 38: Thank You Very Much for Your Attention
THANK YOU VERY MUCH FOR YOUR ATTENTION! Starting on the left: Dr. Jorn GroRmann (Board member) Axel Meyer (Board member) Dr.-Ing. Johannes Schmidt (Chairman of the Board) Rudolf Weichert (Board member) 38
Slide 39: Agenda
AGENDA VrFfwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - H1 2019 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 39
Slide 40: Contact
CONTACT CORPORATE COMMUNICATIONS INVESTOR RELATIONS JULIA PSCHRIBULLA & +49 (0) 2204-4000-66 BA investor.relations@indus.de [INDUS] PUBLIC RELATIONS MANDY LANGE & +49 (0) 2204-4000-31 wn presse@indus.de 40
Slide 41: Financial Calendar
FINANCIAL CALENDAR PUBLICATION AND CAPITAL MARKET DATES IN 2019 [INDUS] DATE EVENT VENUE 13 August 2019 Interim Report on H1/Q2 2019 Publication 28 August 2019 Commerzbank Sector Conference Frankfurt/Main 11 September 2019 Roadshow Paris 8 October 2019 Roadshow Rheinland 10 October 2019 Roadshow Zur
Slide 42: Performance in the Past Five Years
INDUS IN FIGURES [INDUS] PERFORMANCE IN THE PAST FIVE YEARS Sales EBIT and EBIT margin 10.1% 9.8% 10.0% 9.3% 8.8% % 1,640.6 W110.8 o——e——_e—___,, ° 9 1,444.3 ———e 1,388.9 1,255.7 152. L 7.2363 Lb | Li 134.7 2014 2015 2016 2017 2018 2015 2016 2018* eB EAT 100.7 109.3 1234 12902 114.7 tL i ll 63.3 68.
Slide 43: Performance of the Segments in the Past Five Years
INDUS IN FIGURES [INDUS] PERFORMANCE OF THE SEGMENTS IN THE PAST FIVE YEARS CONSTRUCTION/INFRASTRUCTURE AUTOMOTIVE TECHNOLOGY wae 12% 43% Be om 58% SA 52% a cm _—" ———e—_. a ————¢. e 9 ——e—_, . 3961 391.0 391.0 358.7 351-7 367.7 372.2 330-4 4.5 225.41 235.5 l | L | 4.3 (in EUR millions) 2014 2016 20
Slide 44: Portfolio Companies: Construction/Infrastructure Segment
INDUS PORTFOLIO COMPANIES [INDUS] CONSTRUCTION/INFRASTRUCTURE SEGMENT COMPANIES DESCRIPTION LOCATIONS ancotech DiesIdorf (CH), Rossens (CH), Cologne (DE), Lauchhammer Anchoring and reinforcement technology (CH) BETOMAX. . A Anchoring and reinforcement technology Neuss (DE), Halle (DE) Sealants made
Slide 45: Portfolio Companies: Automotive Technology Segment
INDUS PORTFOLIO COMPANIES AUTOMOTIVE TECHNOLOGY SEGMENT COMPANIES DESCRIPTION [INDUS] LOCATIONS VURORA <: » A Seton ” Heating and air-conditioning systems for vehicles Mudau (DE), Grand Rapids (USA), Istanbul (TR), Nuenen (NL), Oettingen (DE), Shanghai (CN), Weert (NL) ausren Co) : : - ae : HEKERMAN
Slide 46: Portfolio Companies: Engineering Segment
INDUS PORTFOLIO COMPANIES [INDUS] ENGINEERING SEGMENT COMPANIES DESCRIPTION LOCATIONS 2ASS< 7 Robotic hands and automation systems for manufacturers Overath (DE), Worth an der Donau (DE), Plymouth (US) BUDDE Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), ORS ronocrrecirin. Specialist for logistic
Slide 47: 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 Hdsbach (DE), Kénigswalde (DE), Lubari (PL) mikrcp oe oo ; . Miniaturized precision optics Wit
Slide 48: Portfolio Companies: Metals Technology
INDUS PORTFOLIO COMPANIES [INDUS] METALS TECHNOLOGY COMPANIES DESCRIPTION LOCATIONS => BACHER Steel and aluminum building modules for the rail industry Reinach (CH) BETEK Carbide tools for road construction and mining, tunnel and underground construction, farming, etc. Aichhalden (DE), Charlotte (US
Slide 49: 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