Indus Holding Ag · XETR:INH
Indus — 9M 2023 Earnings Presentation
50 slides from Indus's earnings presentation, Nov 14, 2023
Slide 1: Presentation of Income for Nine Months 2023
PRESENTATION OF INCOME FOR NINE MONTHS 2023 Bergisch Gladbach, November 14, 2023
Slide 2: Agenda
AGENDA 1 MAJOR EVENTS 9M 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 2
Slide 3: Significant Developments 9M 2023
SIGNIFICANT DEVELOPMENTS 9M 2023 GOOD DEVELOPMENT DESPITE THE MUTED ECONOMIC ENVIRONMENT Overall economic development remains negative in the third quarter Despite poor overall economic conditions INDUS sales growth of 1.4% (thereof 0.6% organic) Stable EBIT margin before impairment losses of
Slide 4: Agenda
AGENDA 1 MAJOR EVENTS 9M 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 4
Slide 5: We Are Shaping the Future
THE INDUS CORE THE HOME OF TECHNOLOGY-ORIENTED INDUSTRIAL SMES We are the first choice for family-run businesses when it comes to preserving their life’s work in the industrial SME sector WE ARE We promise the companies in our portfolio and those who join us that we will help them to grow as tec
Slide 6: INDUS - Sustainable for Stakeholders
INDUS - SUSTAINABLE FOR STAKEHOLDERS OUR PROMISES TO OUR STAKEHOLDERS They can evolve within a secure Shareholders invest in a managed framework and receive portfolio of technology-oriented important input and support to industrial companies in the SME do so. PORTFOLIO sector of the German speaking
Slide 7: #3 SUSTA[IN]
#3 SUSTA[IN] SUSTAINABILITY – COMMITMENT IN A WIDE RANGE OF AREAS AURORA WASTEWATER REDUCED The switch from leak tests in water basins to a dry test using helium has led to 6,000 liters of wastewater being saved each ASS month. YOUNG RESEARCHERS Since 2016, every October 3 at ASS in Overath is a fam
Slide 8: ISS ESG Rating
ISS ESG RATING ENSURES FAVORABLE FINANCING CONDITIONS Top position in the ISS ESG rating for the eighth time in a row INDUS received a “C+” rating in “Corporate ESG Performance” and hence also “Prime” status Top position in the international peer group of “Financials / Multi- Sector Holdings”
Slide 9: Agenda
AGENDA 1 MAJOR EVENTS 9M 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 9
Slide 10: PARKOUR becomes PARKOUR perform
PARKOUR BECOMES PARKOUR perform FOCUS ON 2025 TARGET ACHIEVEMENT 1 2 3 4 STRENGTHENING DRIVING IMPROVING STRIVING FOR THE PORTFOLIO INNOVATION PERFORMANCE SUSTAINABILITY STRUCTURE 10
Slide 11: INDUS Takes Off. Overview
OVERVIEW LOOKING TOWARDS 2025: WE HAVE SHARPENED OUR STRATEGY WE ... ... act as a value-oriented portfolio company with a clear technological focus INDUS TAKES OFF. ... have therefore focussed our group on three core segments with a strong future ... free up valuable resources and management capacit
Slide 12: PARKOUR perform - Overview
PARKOUR PERFORM - OVERVIEW THREE OVERARCHING GOALS MORE FOCUS ON A CLEARLY STRUCTURED INTENSIVE SUPPORT FOR FUTURE FIELDS PORTFOLIO THE PORTFOLIO COMPANIES Megatrends Focus Segment management Aligning segments with relevant Three segments : Segments managed by members of future fields Engineer
Slide 13: The "INDUS Operating System"
THE "INDUS OPERATING SYSTEM" CONSISTENT FURTHER DEVELOPMENT OF THE PORTFOLIO HOLDING COMPANY Managerial accounting at Financing the INDUS Group Accounting, tax and legal at portfolio companies holding company level Driving Innovation Improving Performance Striving for (operational excellence, market
Slide 14: New Segment Management at a Glance
NEW SEGMENT MANAGEMENT AT A GLANCE FIFTH MEMBER OF THE BOARD OF MANAGEMENT SINCE OCTOBER 2023 Axel Meyer Dr. Jörn Großmann Gudrun Degenhart Dr. Johannes Schmidt Rudolf Weichert SEGMENT MANAGEMENT CENTRAL FUNCTIONS COO ENGINEERING COO INFRASTRUCTURE COO MATERIALS CEO CFO Driving Innovation Strengthen
Slide 15: Segment Management
SEGMENT MANAGEMENT GOALS FOR 2023 Main objectives and tasks for segment management in 2023 Complete adjustment to new segment management principles and main KPIs (including new key figure „free cash flow") Implementing changes in the budgeting process and a stronger top-down approach in the allo
Slide 16: Agenda
AGENDA 1 MAJOR EVENTS 9M 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 16
Slide 17: INDUS in Figures - Key Figures 9M 2023
INDUS IN FIGURES KEY FIGURES 9M 2023 SALES* EBIT* EBIT MARGIN* FREE CASH FLOW* (in EUR million) (in EUR million) (in %) (in EUR million) +19.5% >100% +1.4% 116.9 106.1 1,345.1 1,363.8 97.8 +1.3pp 22.2 7.3 8.6 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 * from continuing operation
Slide 18: EBIT Before Impairment
EBIT BEFORE IMPAIRMENT KEY FIGURES 9M 2023 EBIT* EBIT MARGIN* before impairment (in EUR million) before impairment (in %) -2.3% 137.6 134.5 -0.3pp 10.2 9.9 9M 2022 9M 2023 9M 2022 9M 2023 18
Slide 19: INDUS in Figures - Key Figures 9M 2023
INDUS IN FIGURES KEY FIGURES 9M 2023 OPERATING CASH FLOW* NET DEBT EQUITY RATIO (in EUR million) (in EUR million) (in %) -4.1% 593.5 569.3 >100% +1.1pp 128.7 36.2 36.3 37.4 9M 2022 9M 2023 31.12.2022 30.09.2023 31.12.2022 30.09.2023 * from continuing operations 19
Slide 20: Overview 9M 2023
OVERVIEW 9M 2023 GOOD DEVELOPMENT IN A DIFFICULT ENVIRONMENT KEY FIGURES: INCOME (in EUR million) 9M 2023 9M 2022 ∆ in % Turnover 1,363.8 1,345.1 1.4 Sales growth 1.4%, EBITDA 200.6 200.1 0.2 of which: organic 0.6% and inorganic 0.8% 134.5 137.6 2.2 EBIT before impairment losses In the INFRASTRU
Slide 21: Development of Free Cash Flow
DEVELOPMENT OF FREE CASH FLOW FREE CASH FLOW ALREADY ABOVE FULL-YEAR TARGET AFTER NINE MONTHS Introduction of free cash flow as an additional management in EUR million 9M 2023 9M 2022 variable improves transparency regarding the funds freely available to the Group Operating cash flow from continui
Slide 22: Sales per Segment 9M 2023
SALES PER SEGMENT 9M 2023 INCREASE IN SALES IN THE ENGINEERING SEGMENT ENGINEERING INFRASTRUCTURE MATERIALS -0.4% 0.0% +4.9% 446.5 444.7 484.4 484.4 414.0 434.2 Sales (in EUR million) 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 22
Slide 23: EBIT per Segment 9M 2023
EBIT PER SEGMENT 9M 2023 STRONG DEVELOPMENT IN THE ENGINEERING AND MATERIALS SEGMENTS ENGINEERING INFRASTRUCTURE MATERIALS -13.8% +31.5% +52.7% 42.8 50.5 39.7 36.9 38.4 26.0 EBIT (in EUR million) 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 23
Slide 24: EBIT Before Impairment per Segment 9M 2023
EBIT BEFORE IMPAIRMENT PER SEGMENT 9M 2023 STRONG DEVELOPMENT IN THE ENGINEERING AND MATERIALS SEGMENT ENGINEERING INFRASTRUCTURE MATERIALS -20.0% +7.9% EBIT before impairment (in EUR million) +11.8% 55.5 55.8 51.7 44.5 44.4 39.8 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 24
Slide 25: Engineering - At a Glance
ENGINEERING AT A GLANCE THE SEGMENT BUNDLES COMPANIES FROM ... ENGINEERING Automation/robotics Sensors and measuring technology Specialized machinery/equipment construction MEGATRENDS (e.g., energy, food and packaging technology) Digitalization Sustainability “With our unique expertise, we
Slide 26: Engineering - EBIT Margin Significantly Improved
ENGINEERING EBIT MARGIN SIGNIFICANTLY IMPROVED Organic sales growth of 3.1% and inorganic sales growth of 1.8% INDUSTRY TREND through HEIBER + SCHRÖDER and HELD (acquisitions in 2022) Despite further big orders, incoming orders in Organic growth mainly due to revitalised business in the area o
Slide 27: Engineering - Overview of Key Figures
ENGINEERING OVERVIEW OF KEY FIGURES (in EUR million) 9M 2023 9M 2022 ∆ in % Sales with external third parties 434.2 414.0 4.9 FORECAST NOVEMBER 2023 EBITDA 68.3 62.7 8.9 Slight increase in sales Scheduled depreciation and amortisation -23.8 -22.9 -3.9 (no change) EBIT before impairment 44.5 39.8 1
Slide 28: Infrastructure - At a Glance
INFRASTRUCTURE AT A GLANCE THE SEGMENT BUNDLES COMPANIES FROM ... INFRASTRUCTURE Construction and building technology Telecommunications infrastructure Air-conditioning technology MEGATRENDS Mobility and urbanization Digitalization Sustainability “In an increasingly connected world, we n
Slide 29: Infrastructure - Sales Revenue in Q3 Up Slightly
INFRASTRUCTURE SALES REVENUE IN Q3 AGAIN UP SLIGHTLY ON THE PREVIOUS YEAR Organic sales decline of 1.1% and inorganic sales increase of 0.7% due to new acquisition QUICK INDUSTRY TREND Business of many portfolio companies dampened by calmer construction sector, Declining order book situation w
Slide 30: Infrastructure - Overview of Key Figures
INFRASTRUCTURE OVERVIEW OF KEY FIGURES (in EUR million) 9M 2023 9M 2022 ∆ in % Sales with external third parties 444.7 446.5 -0.4 FORECAST NOVEMBER 2023 EBITDA 63.5 73.6 -13.7 Stable sales Scheduled depreciation and amortisation -19.1 -18.1 -5.5 (previously: slight increase in sales) EBIT before i
Slide 31: Materials - At a Glance
MATERIALS AT A GLANCE THE SEGMENT BUNDLES COMPANIES FROM ... MATERIALS Metal forming and processing Metal production (hard metals and abrasives) MEGATRENDS Medical consumables and aids Sustainability Mobility and urbanization Demographics and health "New opportunities are opening up in m
Slide 32: Materials - EBIT Margin Better Than Expected
MATERIALS EBIT MARGIN BETTER THAN EXPECTED Stable sales development, offsetting the effects of higher prices compared to the same period of the INDUSTRY TREND previous year and an overall decline in volumes Business climate index for the metal industry fell In the case of metal processing comp
Slide 33: Materials - Overview of Key Figures
MATERIALS OVERVIEW OF KEY FIGURES (in EUR million) 9M 2023 9M 2022 ∆ in % Sales with external third parties 484.4 484.4 0.0 FORECAST NOVEMBER 2023 EBITDA 78.2 72.4 8.0 Stable sales Scheduled depreciation and amortisation -22.4 -20.7 -8.2 (previously: slight increase in sales) EBIT before impairmen
Slide 34: Agenda
AGENDA 1 MAJOR EVENTS 9M 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 34
Slide 35: Economic Environment - Outlook for 2023
ECONOMIC ENVIRONMENT - OUTLOOK FOR 2023 DEVELOPMENT IN GERMANY STRONGLY DIFFERS FROM OTHER COUNTRIES Expected GDP development in 2023 remains negative Weak foreign trade affects the German economy disproportionately in international comparison. Consumer sentiment at a low level despite falling
Slide 36: Adjusted Forecast for the Segments
ADJUSTED FORECAST FOR THE SEGMENTS ENGINEERING & MATERIALS SEGMENTS PERFORM BETTER THAN EXPECTED Actual 2022 Forecast August 2023 Forecast November 2023 Engineering Sales EUR 580.9 million Slight rise in sales Slight rise in sales EBIT EUR 47.4 million Strong rise in income Rise in income EBIT margi
Slide 37: Forecast 2023 (Continuing Operations) - Confirmed
FORECAST 2023 (FOR CONTINUING OPERATIONS) - CONFIRMED INCREASE IN EBIT EXPECTED FOR 2023 GROUP Forecast 2023 2022 (as of Nov. 2023) Turnover (in EUR billion) 1.80 1.8-1.9 EBIT (in EUR million) 133.7 145-165 EBIT margin (in %) 7.4 7.0-8.0 (upper end) Free cash flow (in EUR million) 101.5 > 100 Acquis
Slide 38: Agenda
AGENDA 1 MAJOR EVENTS 9M 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 38
Slide 39: Current Shareholder Structure
CURRENT SHAREHOLDER STRUCTURE ANCHOR SHAREHOLDERS SUPPORT THE COMPANY'S LONG-TERM COURSE SHAREHOLDER STRUCTURE OF INDUS HOLDING AG WKN/ISIN 620010/EN 000 620 010 8 Foundation/IPO 1986/1995 VERSICHERUNGSKAMMER Financial year 1 Jan. to 31 Dec. BAYERN 17,7 % Share capital EUR 69.9 million H. J. SELZER
Slide 40: Agenda
AGENDA 1 MAJOR EVENTS 9M 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 40
Slide 41: INDUS in Figures - Key Figures Q3 2023
INDUS IN FIGURES KEY FIGURES Q3 2023 SALES* EBIT* EBIT MARGIN* FREE CASHFLOW* (in EUR million) (in EUR million) (in %) (in EUR million) +0.2% +31.1 pp 458.8 459.7 > 100% +4.7 pp 70.9 32.1 39.8 10.3 2.3 7.0 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 * from continuing operations 4
Slide 42: EBIT Before Impairments Q3 2023
EBIT BEFORE IMPAIRMENTS Q3 2023 KEY FIGURES Q3 2023 EBIT* EBIT MARGIN* before impairment (in EUR million) before impairment (in %) -0.8% 50.1 49.7 -0.1 pp 10.9 10.8 Q3 2022 Q3 2023 Q3 2022 Q3 2023 * from continuing operations 42
Slide 43: Revenue per Segment Q3 2023
REVENUE PER SEGMENT Q3 2023 KEY FIGURES Q3 2023 ENGINEERING INFRASTRUCTURE MATERIALS +0.6% -5.7% +6.4% 152.5 153.4 162.1 152.8 144.2 153.4 Sales (in EUR million) Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q3 2022 Q3 2023 43
Slide 44: EBIT per Segment Q3 2023
EBIT PER SEGMENT Q3 2023 SIGNIFICANTLY IMPROVED EBIT IN ALL SEGMENTS ENGINEERING INFRASTRUCTURE MATERIALS >100% +59.5% >100% 13.8 11.8 12.5 7.4 EBIT (in EUR million) 5.3 1.2 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 44
Slide 45: EBIT Before Impairments per Segment Q3 2023
EBIT BEFORE IMPAIRMENTS PER SEGMENT Q3 2023 SIGNIFICANTLY IMPROVED EBIT BEFORE IMPAIRMENTS IN THE ENGINEERING SEGMENT ENGINEERING INFRASTRUCTURE MATERIALS -4.0% +24.0% -4.3% EBIT before impairments (in EUR million) 20.1 19.3 18.6 18.6 17.8 15.0 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 45
Slide 46: INDUS Portfolio Companies - Engineering
INDUS PORTFOLIO COMPANIES ENGINEERING COMPANIES DESCRIPTION LOCATIONS Robotic hands and automation systems for manufacturers Overath (DE), Plymouth (US) Specialist in logistics and materials flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmalkalden (DE) Burbach (DE), Barcelona (ES), Burli
Slide 47: INDUS Portfolio Companies - Infrastructure
INDUS PORTFOLIO COMPANIES INFRASTRUCTURE COMPANIES DESCRIPTION LOCATIONS Anchor and reinforcement technology Dielsdorf (CH), Cologne (DE), Lauchhammer (DE), Rossens (CH) Mudau (DE), Grand Rapids (US), Ergene/Tekirdag (TR), Nuenen (NL), Heating and air conditioning systems for vehicles Weert (NL) Anc
Slide 48: INDUS Portfolio Companies - Materials
INDUS PORTFOLIO COMPANIES MATERIALS COMPANIES DESCRIPTION LOCATIONS Carbide tools for road construction and mining, tunnelling and special civil Aichhalden (DE), Charlotte (US), Taicang (CN) engineering, agriculture, etc. Innovative cold extruded parts, turned parts and screw plugs Hillesheim (DE),
Slide 49: Contact
CONTACT IR/PR In case of any questions, do not hesitate to contact us! Dafne Sanac Nina Wolf Investor Relations Corporate Communications Tel: +49 (0) 2204-4000-32 Tel: +49 (0) 2204-4000-73 E-Mail: investor.relations@indus.de E-Mail: presse@indus.de 49
Slide 50: Disclaimer
INDUS HOLDING AG DISCLAIMER This presentation was prepared by INDUS Holding AG (herein 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. All i