Bertrandt Ag · XETR:BDT
Bertrandt — Investor Presentation (October 2024)
75 slides from Bertrandt's investor presentation, Oct 1, 2024
Slide 1: Investor Presentation Bertrandt AG
Investor Presentation Bertrandt AG Markus Ruf, Björn Voss September/October 2024
Slide 2: At A Glance
At A Glance Bertrandt AG 1 Investor Presentation | Bertrandt AG | September/October 2024
Slide 3: Bertrandt Group: Driving Engineering and Digitization
Bertrandt Group: Driving Engineering and Digitization >50 years Total revenues EBIT ~14,000 >50 locations Investor Presentation | Bertrandt AG | September/October 2024 experience FY 2022/23: €1.16bn FY 2022/23: €50m employees globally Revenues by geography (FY 22/23) Revenues by end market (FY 22/23
Slide 4: Bertrandt Global Footprint
Bertrandt Global Footprint Near to customer R&D hubs in Investor Presentation | Bertrandt AG | September/October 2024 Germany, France, Spain, Italy, China, and the US. Global delivery from Romania, Morocco, and Turkey. 3
Slide 5: Continuous growth over the cycles
Continuous growth over the cycles Bertrandt history and revenue development (EUR m) Further service expansion into environmentally friendly mobility, safety, comfort and connectivity +8.2% CAGR 09-23’ Investor Presentation | Bertrandt AG | September/October 2024 1.157 “Corona-Dip” 1.060 Revenues -20
Slide 6: Customer centric organization operating through reporting segments
Customer centric organization operating through 3 reporting segments across 5 end-market divisions Digital Engineering Electric/Electronics Physical Engineering Designs modules and components (e.g. chassis or Unique software solutions, autonomous mobility, Physical testing and validating of parts, c
Slide 7: Encouraging increase in headcount despite a tight labor market
Encouraging increase in headcount despite a tight labor market highlights strong recruiting performance and brand recognition Investor Presentation | Bertrandt AG | September/October 2024 >100 36.8 23.5% €8.4m p.a.(b) Bertrandt-Way Nationalities Average age Women's quota(a) Training & Education Empl
Slide 8: HR: Successful national/international recruiting and retention
HR: Succesfull national/international recruiting and retention >170,000 CVs Headcount nearshore 2022/23 Investor Presentation | Bertrandt AG | September/October 2024 >1,000 14,276 25% nearshore Workforce employees presence abroad 2022/23 We are 2017 2018 2019 2020 2021 2022 2023 2024ytd Hiring selec
Slide 9: Expert Organization
Expert Organization Investor Presentation | Bertrandt AG | September/October 2024 Electronics Product Physical Industries Aerospace Engineering Software Experts Design Solutions Testing Solutions Smart Production Commercial Aviation Solutions Autonomous Mobility Simulation Solutions eMobility Defens
Slide 10: Sustainability part of Group strategy
Sustainability part of Group strategy ▪ Holistic sustainability approach with the overarching goal of CO2 neutrality by 2039 Investor Presentation | Bertrandt AG | September/October 2024 ▪ Audited GHG emission footprint ▪ Scope 1: -16% yoy (FY 2022/23) ▪ Scope 2: -9% yoy (FY 2022/23) ▪ Scope 3: +12%
Slide 11: Corporate Strategy
Corporate Strategy Corporate Strategy 10 Investor Presentation | Bertrandt AG | September/October 2024
Slide 12: Investment Highlights & Opportunities
Investment Highlights & Opportunities 11 Investor Presentation | Bertrandt AG | September/October 2024
Slide 13: Conscious diversification into adjacent industries around core focus on automotive
Conscious diversification into adjacent industries around core focus on automotive End market exposure: cross sectoral mega trends support diversification Investor Presentation | Bertrandt AG | September/October 2024 Automotive Aerospace Electrical Mechanical & Medical industry industry industry pla
Slide 14: Global and industry specific mega trends drive R&D
Global and industry specific mega trends drive R&D in Bertrandt‘s core markets Global Trends Industry Specific Trends Investor Presentation | Bertrandt AG | September/October 2024 ▪ eMobility ▪ Cyber Security ▪ aMobility ▪ Shared mobility Growing need ▪ Connected systems ▪ Regulation ▪ Over-the-air
Slide 15: Automotive R&D outsourcing to grow by 6.5% CAGR 2020-2030e
Automotive R&D outsourcing to grow by 6.5% CAGR 2020-2030e 250 25 215 € bn Total market +3.2% 200 183 € bn 20 20.5 CAGR (20-30E) 164 € bn 152 € bn 159 € bn 157 € bn 150 15 16.0 Investor Presentation | Bertrandt AG | September/October 2024 12.8 12.5 100 11.1 10 10.9 R&D for E/E & SW +7.0% CAGR (20-30
Slide 16: Global automotive R&D investments by country
Global automotive R&D investments by country 60 +15% 52 ▪ German automotive industry spent the most on 50 45 R&D globally Investor Presentation | Bertrandt AG | September/October 2024 +9% +13% 40 34 34 ▪ Premium approach and transformation as in EUR bn 31 30 30 +25% +11% major drivers for R&D 22 21
Slide 17: R&D investments steadily growing and resilient
R&D investments steadily growing and resilient ▪ OEM R&D budgets driven by megatrends: R&D expenditures ▪ Digitization 45000 ▪ Sustainable & Autonomous mobility ▪ Connectivity Investor Presentation | Bertrandt AG | September/October 2024 40000 ▪ Innovations 35000 30000 ▪ Total R&D investments by Ger
Slide 18: EV and PHEV share in selected countries
EV and PHEV share in selected countries 12.000.000 +34% 10.000.000 ▪ EV facts 8.000.000 ▪ China is the largest EV market; EV share at 34% in 2023 EV 6.000.000 +21% ▪ EV share in the US at 17% Investor Presentation | Bertrandt AG | September/October 2024 4.000.000 +50% ▪ EV share in WE5+5 at 52% 2.00
Slide 19: AI@Bertrandt: Goals
AI@Bertrandt: Goals Investor Presentation | Bertrandt AG | September/October 2024 Increase in Process Innovation productivy efficiency 18
Slide 20: AI@Bertrandt: Use cases
AI@Bertrandt: Use cases (not conclusive) Investor Presentation | Bertrandt AG | September/October 2024 AI internally AI externally as part of our services to customers − Software development − Data Labelling − Document intelligence (intelligent automated document − Deep learning for autonomated driv
Slide 21: Excursus: data labelling for automated driving
Excursus: data labelling for automated driving − Challenge: „Labelling of data for deep learning applications“ Precise recognition of data Investor Presentation | Bertrandt AG | September/October 2024 − Bertrandt AI solution : „Automated data classification and categorization“ The automation softwar
Slide 22: Excursus: deep learning for automated driving
Excursus: deep learning for automated driving − Challenge: “Training of automated driving features “ Deep learning functunalities for ADAS/AD Investor Presentation | Bertrandt AG | September/October 2024 − Bertrandt AI solution: „Deep learning prozess for autonomous driving“ Coverage of the entire d
Slide 23: Excursus: document intelligence
Excursus: document intelligence − Challenge: „Inquiry analysis“ Customer inquiries and requirement in various file formats; costly data and content analysis. Investor Presentation | Bertrandt AG | September/October 2024 − Bertrandt AI solution: “AI-automated inquiry mangement“ Bertrandt uses “Azure
Slide 24: Quote on artificial intelligence
Investor Presentation | Bertrandt AG | September/October 2024 "Artificial intelligence will not replace you – but the one who uses AI better will replace you.“ Karim R. Lakhani, Autor 23
Slide 25: Outlook ESP: size matters
Outlook ESP: size matters Investor Presentation | Bertrandt AG | September/October 2024 Larger and more holistic R&D projects; emergence of an ESP tier-1 landscape 24
Slide 26: Outlook ESP: know-how matters
Outlook ESP: know-how matters Investor Presentation | Bertrandt AG | September/October 2024 Large ESPs with comprehensive expertise in breadth and depth along the megatrends and with AI know-how. 25
Slide 27: Outlook ESP: international set-up matters
Outlook ESP: international set-up matters Investor Presentation | Bertrandt AG | September/October 2024 Customer proximity through international presence Competitive R&D capacity 26
Slide 28: Our test centers enable clients to become more sustainable
Our test centers enable clients to become more sustainable Investor Presentation | Bertrandt AG | September/October 2024 High-voltage battery test center Powertrain Solution Center* ▪ 24 HV channels ▪ 8 all-wheel-drive climatic and 2 height chambers ▪ 9,600 kW HV ▪ Altitude simulation up to 5,200 m
Slide 29: Bertrandt Medical
Bertrandt Medical ▪ Expansion of resources and service portfolio to meet special medical technology requirements ▪ Classic product development Investor Presentation | Bertrandt AG | September/October 2024 ▪ Increased demand for quality management, regulatory affairs, risk management, equipment quali
Slide 30: M&A constitute an integral part of the Group's strategy
M&A constitute an integral part of the Group's strategy, demonstrated by its strong track record M&A is part of Group strategy Selection criteria and recent transactions ▪ Broaden technical and engineering skills Investor Presentation | Bertrandt AG | September/October 2024 Strategic Reasonable Cult
Slide 31: M&A Update: bolt-on acquisition in Spain
M&A Update: bolt-on acquisition in Spain 2005 ~140 2 ~10m ~7-9% Investor Presentation | Bertrandt AG | September/October 2024 founded employees sites in Spain € revenue EBIT − Centum Digitasl: vertical integration of a key partner of Bertrandt Technology in Spain − Signing January 15th, 2024 − Closi
Slide 32: Diversification: production-related consulting and services
Diversification: production-related consulting and services Investor Presentation | Bertrandt AG | September/October 2024 Profit and liquidity optimization, increased Sustainability, automation, digitalization, Optimization of value creation, quality productivity, transparency resilience improvement
Slide 33: Dividend policy: reliable payout for shareholders
Dividend policy: reliable payout for shareholders*** 3.00 58% 60% 2.45 2.50 2.50 2.50 2.40 50% 2.20 43% 41% 41% 41% 40% 39% 39% 40% 40% 2.00 40% 2.00 40% Investor Presentation | Bertrandt AG | September/October 2024 Payout ratio 1.60 1.50 30% 1.20 1.00 0.85 20% 0.50 0.27 10% 2.4% 2.4% 2.6% 2.6% 2.9%
Slide 34: Bertrandt: reasons to invest
Bertrandt: reasons to invest Market leading positioning − Experienced expert organization #1-3 − Long-lasting & established customer relations − Deep engineering know-how Growing and resilient R&D market Investor Presentation | Bertrandt AG | September/October 2024 +6.5% − Mega trends CAGR 2020-2030
Slide 35: Outlook 2023/2024
Outlook 2023/2024 34 Investor Presentation | Bertrandt AG | September/October 2024
Slide 36: High R&D investments, but…
High R&D investments, but… Investor Presentation | Bertrandt AG | September/October 2024 35 VDA, 29. Februar 2024 https://www.vda.de/de/aktuelles/artikel/2023/forschung-und-entwicklung
Slide 37: …company-specific challenges lead to project delays
…company-specific challenges lead to project delays 36 Investor Presentation | Bertrandt AG | September/October 2024
Slide 38: Business environment
Business environment − Persistent short-term uncertainty because of political decisions and changing end-customer behaviour Investor Presentation | Bertrandt AG | September/October 2024 − No general market weakness, yet customer-specific postponements of R&D projects linked to strategic and technica
Slide 39: Fit For Future: comprehensive optimization programm implemented
Fit For Future: comprehensive optimization programm implemented Investor Presentation | Bertrandt AG | September/October 2024 Portfolio measures ▪ Target utilization for Restructuring costs machinery/equipment Benefit ▪ Evaluation of BUs based Low to mid double-digit million Euro Double-digit millio
Slide 40: Offered RFQ volume
Offered RFQ volume: EUR 3.1bn RFQ volume* EUR 9.9bn − RFQs at record level − Delayed decisions for new projects RFQ volume Investor Presentation | Bertrandt AG | September/October 2024 offered − Offered RFQ volume exceeds EUR 3bn EUR 3.1bn *LTM − Long-term R&D budgets more important than CapEx Sourc
Slide 41: Forecast FY 2023/2024 and mid-term target
Forecast FY 2023/2024 and mid-term target Investor Presentation | Bertrandt AG | September/October 2024 Total Operating CapEx EBIT Revenues Cashflow Moderately* up yoy Significantly* down yoy Positive EUR 25-40 million FY 22/23: EUR 1.157m (FY 22/23: EUR 50.1m) Mid-term margin target Moderate change
Slide 42: Financials Overview
Overview Financials 41 Investor Presentation | Bertrandt AG | September/October 2024
Slide 43: Confirmed strong growth and margin expansion anticipated into FY2023/24
Confirmed strong growth and margin expansion anticipated into FY2023/24 – Asset light business model approach Total revenues (in EUR m) and yoy growth (%) EBIT (in EUR m) and margin (%) CapEx (in EUR m) and % of revenues 2.9% 3.8% -13.5% -7.4% 18.9% 14.7% 0-10% 6.3% 7.1% 5.7% 1.7% 2.4% 4.1% 4.3% * 3
Slide 44: Digital Engineering Historical Financials
Digital Engineering Historical Financials: Margin fully recovered following COVID-19 Total revenues (in EUR m) and yoy growth (%) EBIT (in EUR m) and margin (%) 0.3% 2.4% 1.2% -23.0% -12.0% 19.3% 15.6% 5.0% 5.6% 4.0% -2.0% 1.6% 5.7% 5.4% 596 603 582 563 Investor Presentation | Bertrandt AG | Septemb
Slide 45: Electric/Electronics Historical Financials
Electric/Electronics Historical Financials: Key driver of group growth Total revenues (in EUR m) and yoy growth (%) EBIT (in EUR m) and margin (%) 2.4% 0.6% 11.0% -6.2% 9.6% 26.8% 19.6% 9.8% 9.9% 7.7% 6.4% 6.1% 6.6% 7.1% 365 26 Investor Presentation | Bertrandt AG | September/October 2024 305 21 21
Slide 46: Physical Engineering Historical Financials
Physical Engineering Historical Financials: Ramp up of new test center to support growth and margin going forward Total revenues (in €m) and y-o-y growth (%) EBIT (in €m) and margin (%) -3.1% 6.8% 4.0% 4.3% -14.3% 8.7% 5.8% 6.5% 8.5% 8.2% 4.6% -0.7% -2.8% -2.6% 233 17.1% 13.6% 12.7% 229 Investor Pre
Slide 47: Back-up FY 2023/2024
Back-up FY 2023/2024 46 Investor Presentation | Bertrandt AG | September/October 2024
Slide 48: 9m 2023/2024 at a glance
9m 2023/2024 at a glance Investor Presentation | Bertrandt AG | September/October 2024 Total sales Employees EBIT FCF EUR 922m 14,273* EUR 15m EUR +25.5m +7.4% yoy +2% yoy, -2% qoq -54% yoy (9m 22/23: *w/o Centum EUR -13.968m) 47
Slide 49: H1 2023/2024 at a glance
H1 2023/2024 at a glance Investor Presentation | Bertrandt AG | September/October 2024 Total sales Employees EBIT Equity Ratio FCF EUR 627m 14,526 EUR 22m 48.7% EUR 43m +9% yoy +6% yoy -8% yoy (H1 22/23: 47.5%) +322% yoy +1% qoq 48
Slide 50: Q3 2023/2024 at a glance
Q3 2023/2024 at a glance Investor Presentation | Bertrandt AG | September/October 2024 Total sales EBIT Personnel Equity ratio CapEx expenses ratio 48.3% EUR 4.4m EUR 294.7m EUR -7m 76% (Prior year: 47.8%) (Q3 22/23: +3% yoy -15m yoy (Q3 22/23: 73.8%) EUR 5.9m) 49
Slide 51: Q2 2023/2024 at a glance
Q2 2023/2024 at a glance Investor Presentation | Bertrandt AG | September/October 2024 Total sales EBIT EPS CapEx FCF EUR 318m EUR 8.5m EUR 0.43 EUR 5.6m EUR 14m +9% yoy -32% yoy -44% yoy +/-0% yoy (Q2 22/23: EUR -36m) +6% yoy organically 50
Slide 52: Q1 2023/2024 at a glance
Q1 2023/2024 at a glance Investor Presentation | Bertrandt AG | September/October 2024 Total sales Employees EBIT EPS FCF EUR 308.4m 14,401 EUR 13.5m EUR 0.78 EUR 29m +10% yoy +7% yoy +17% yoy +26% yoy positive despite sales growth 51
Slide 53: Continued topline growth
Continued topline growth EUR 922m EUR 858m − Total sales up by EUR +63m (+7% yoy) in 9m 2023/2024 9m 2022/2023 9m 2023/2024 1.000.000 − Strong growth abroad, but weaker demand at certain Investor Presentation | Bertrandt AG | September/October 2024 German locations 800.000 294.665 285.092 − Adverse
Slide 54: EBIT impacted by volatile capacity call-offs and one-off items
EBIT impacted by volatile capacity call-offs and one-off items 9m 2022/2023 9m 2023/2024 − Reduced capacity demand led to uneven and unfavorable 35.000 capacity utilization since Q2 2023/2024 EUR 33m EUR 15m 30.000 8.690 Investor Presentation | Bertrandt AG | September/October 2024 − Personnel expen
Slide 55: Positive development in all segments
Positive development in all segments Margin 9M 23/24 (9M 22/23) Digital Engineering: M&A effects (Concept, evopro), under-utilization, 2.5% (5.2%) -10.1% (-4.8%) 7.4% (7.2%) recovery France 437.188 Investor Presentation | Bertrandt AG | September/October 2024 402.208 400.000 Physical Engineering: +8
Slide 56: Status test center
Status test center Updated Topic Comment Investor Presentation | Bertrandt AG | September/October 2024 Request/Concept for Improvement (Ertüchtigungsverlangen) Three weeks of maintenance and downtime in November/December 2023 Technical readiness at ~90%; remaining repair works Ongoing January/Februa
Slide 57: Group P&L KPIs
Group P&L KPIs 9M 9M Item (EUR m) ratio (%) ratio (%) Comment 2023/2024 2022/2023 Investor Presentation | Bertrandt AG | September/October 2024 +7.4% yoy; very dynamic international growth, slow-down in Total sales 921.555 - 858.227 - Germany Material expenses -120.184 13.0% -102.129 11.9% Project-r
Slide 58: Balance sheet KPIs
Balance sheet KPIs Item (EUR m) 9M 2023/2024 2022/2023 Comment Balance sheet total 925.846 956.120 Regular D&A vs Capex, WC improvement Investor Presentation | Bertrandt AG | September/October 2024 Working Capital 337.534 349.167 Release of working capital (trade receivables) Cash and cash equivalen
Slide 59: Back-up FY 2022/2023
Back-up FY 2022/2023 58 Investor Presentation | Bertrandt AG | September/October 2024
Slide 60: Highlights FY 2022/2023
Highlights FY 2022/2023 − High research and development investments for innovations, competitive products and regulatory requirements Investor Presentation | Bertrandt AG | September/October 2024 − Total sales up 15% to a new record of EUR ~1.16bn, upper end of the increased forecast − Record number
Slide 61: Highlights Internationalization
Highlights Internationalization − Successful site opening in Morocco: presence on four continents Investor Presentation | Bertrandt AG | September/October 2024 − Internationalization rate of employees at 25% − Romania with ~1,000 employees − Around 30% growth in total sales abroad − EBIT of foreign
Slide 62: Total sales above pre-pandemic level in FY 2022/2023
Total sales above pre-pandemic level in FY 2022/2023 − Increased demand and project awards as well as successful project acquisition Investor Presentation | Bertrandt AG | September/October 2024 − Active inflation management 1,157.411 − Temporary and project-related increased use of 1,059.870 extern
Slide 63: Positive development in all segments
Positive development in all segments Digital Engineering: Noticeable growth thanks to increased project awards Segment margin 5.3% -2.6% 7.1% and recovery in France +15.6% yoy Investor Presentation | Bertrandt AG | September/October 2024 600.000 563.167 Physical Engineering: 500.000 487.354 +19.6% y
Slide 64: Further increase in EBIT
Further increase in EBIT − EBIT benefits from increased capacity utilization and cost discipline Investor Presentation | Bertrandt AG | September/October 2024 6% − General inflation as a burden; 5.7% 70.000 countermeasures, such as price increases, 5% only take full effect with a time lag 60.322 60.
Slide 65: Key expense ratios
Key expense ratios Personnel expenses (in EUR m) D&A (in EUR m) Other operating expenses (in EUR m) 2021/2022 2022/2023 2021/2022 2022/2023 2021/2022 2022/2023 Investor Presentation | Bertrandt AG | September/October 2024 -740.314 -81.108 -839.677 -91.351 -56.976 -56.247 − Employee growth − D&A slig
Slide 66: Factors influencing total operating performance and EBIT
Factors influencing total operating performance and EBIT Sickness rate (H1 2022/2023) Investor Presentation | Bertrandt AG | September/October 2024 Inflation: M&A − Inflation adjustment premium activities − Cost effects − Countermeasures (e.g. price increases) 19.806 € 12.138 Ramp-up test centers Em
Slide 67: Earnings performance
Earnings performance EPS (in EUR) EBT Profit after taxes Investor Presentation | Bertrandt AG | September/October 2024 3.01 (in EUR m) (in EUR m) 30.444 40.099 +44% 2.09 32.797 21.134 2021/2022 2022/2023 2021/2022 2022/2023 2021/2022 2022/2023 66
Slide 68: Overview P&L
Overview P&L 2022/2023 2021/2022 comparison EUR million % of total EUR million % of total EUR million % Total revenues 1,157.411 100 % 1,009.159 100 % 148.252 15 % Other operating income 12.138 1% 19.806 2% -7.668 -39 % Investor Presentation | Bertrandt AG | September/October 2024 Raw materials and
Slide 69: Financial position and net assets
Financial position and net assets − Investment focus: environmentally friendly individual mobility, autonomous and connected systems 65.219 Investor Presentation | Bertrandt AG | September/October 2024 − CapEx further reduced and at the lower end of the forecast range 51.638 − Additional cash outflo
Slide 70: Financial position and assets
Financial position and assets Equity and equity ratio Cash flow from operating activities Free cash flow (in EUR m) (in EUR m) (in EUR m) 47.5 % Investor Presentation | Bertrandt AG | September/October 2024 8.961 45.2% 454.627 56.900 431.846 7.107 38.459 2021/2022 2022/2023 2021/2022 2022/2023 2021/
Slide 71: KPIs Balance Sheet
KPIs Balance Sheet Item (EUR m) 2022/2023 2021/2022 Comment Non-current assets EUR 423m EUR 444m End of investment cycle, D&A, net deferred taxes Investor Presentation | Bertrandt AG | September/October 2024 Working capital EUR 345m EUR 294m Increase of contract assets Cash and cash equivalents EUR
Slide 72: Financial calendar
Financial calendar 14 February 2024 Q1 2023/2024 (Link) 15 May 2024 H1 2023/2024 report (Link) Investor Presentation | Bertrandt AG | September/October 2024 05 August 2024 Q3 2023/2024 (Link) 12 December 2024 FY 2023/2024 Investor, Analyst & Press conferences FY 2022/2023 Annual Report incl. ESG rep
Slide 73: Thank you very much
Thank you very much 72 Investor Presentation | Bertrandt AG | September/October 2024
Slide 74: Contact details
Contact details Bertrandt AG, Birkensee 1, 71139 Investor Presentation | Bertrandt AG | September/October 2024 Ehningen, Germany Markus Ruf Member of the Board, Finance +49 7034 656 13076 Björn Voss Head of Group Investor Relations and M&A bjoern.voss@bertrandt.com www.bertrandt.com 73
Slide 75: Disclaimer
Disclaimer This presentation contains, among other things, certain forward-looking statements about future developments that are based on management's current estimates. Such statements are subject to certain risks and uncertainties. If any of these or other uncertainties materialize, or if the assu