Slide 1: Publication of Financial Results for Fiscal Year 2018
PUBLICATION OF FINANCIAL RESULTS FOR FISCAL YEAR 2018 Bergisch Gladbach, 27 March 2019
Slide 2: Agenda
INDUS BUSINESS MODEL NEW STRATEGIC PROGRAM FISCAL YEAR 2018 SHARE AND DIVIDEND OUTLOOK 2019 APPENDIX [INDUS]
Slide 3: We are passionate about SMEs
INDUS BUSINESS MODEL [INDUS] WE ARE PASSIONATE ABOUT SMES HoRN WE... \aaneyae SSCHERIN om Ss — are the leading specialist in long-term investment HANNOVER = \ i BERHISS. j Sma \nenue) ga and development in the german SME Sector. ROLKO= weenKo OBUK® , "SUDDE RAGUSE DUSSELDORF a VULKAN INOK MIGUA™ = —
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: Support from a long-term financial investor
INDUS BUSINESS MODEL [INDUS] SUPPORT FROM A LONG-TERM FINANCIAL INVESTOR INDUS Holding AG STaucaiceparaing _ ) Portfolio companies Portfoliomanagement Independent operational management of the business — Supporting portfolio companies in strategic issues — Research and development — Promoting portfo
Slide 7: Accompanying SME Hidden Champions in the long term
INDUS ACCOMPANYING SME HIDDEN CHAMPIONS IN THE LONG TERM as a MAJORITY a BANK RFHOLDER as a CONSULTANT s a FINANZHOLDING — Company acquisitions — Long-term holding perspective — Know-how — Financing tasks in shareholder — Investments in property, plant © — Operational responsibility — Strategic Spar
Slide 8: Agenda
INDUS BUSINESS MODEL NEW STRATEGIC PROGRAMME FISCAL YEAR 2018 SHARE AND DIVIDEND OUTLOOK 2019 APPENDIX [INDUS]
Slide 9: 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 10: 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 digitization is presenting enterprises with fundamentally new challenges. — In order for our portfolio companies to successfully master these tasks, they
Slide 11: 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
Slide 12: 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 13: 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 digitization, operational excellence and internationalization. 2. DRIVE INNOVATI
Slide 14: 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 15: 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 16: Agenda
INDUS BUSINESS MODEL NEW STRATEGIC PROGRAM FISCAL YEAR 2018 SHARE AND DIVIDEND OUTLOOK 2019 APPENDIX [INDUS] 16
Slide 17: Solid business performance with some weak points
ECONOMIC DEVELOPMENT 2018 FISCAL YEAR 2018 SOLID BUSINESS PERFORMANCE WITH SOME WEAK POINTS REVENUE TARGETS clearly achieved; slightly above forecast of EUR 1.65 to 1.70 billion OPERATING RESULT (EBIT) before impairment losses below expectations; lower end of forecast of EUR 154 to 160 million not q
Slide 18: Sales development
ECONOMIC DEVELOPMENT 2018 [INDUS] SALES DEVELOPMENT REVENUE TARGETS CLEARLY ACHIEVED 1,710.8 +4.3% 1,640.6 (44.3%) — BROAD-BASED REVENUE GROWTH OF 4.3% 1,388.9 1,444.3 — THEREOF 3.2% ORGANIC and 1.1% inorganic 1,255.7 — Growth supported by the majority of the portfolio companies — Some automotive te
Slide 19: Regional sales distribution
ECONOMIC DEVELOPMENT 2018 REGIONAL SALES DISTRIBUTION INCREASE IN DOMESTIC REVENUES [INDUS] INTERNATIONAL REVENUES AT PREVIOUS YEAR'S LEVEL Domestic 51.4% 815.5 448.7 376.4 : 878.9 448.4 383.5 : 2017 m= Domestic 2018 EU mThird countries (in EUR millions) 19
Slide 20: Operating result
ECONOMIC DEVELOPMENT 2018 [INDUS] OPERATING RESULT MODERATE DECLINE IN EBIT BEFORE IMPAIRMENT To.1% 9.8% 10.0% 23% o—___. » —_—_e ° ; "8.8% 7.9% —. . COST OF MATERIALS oo — Increased expenses for raw materials, consumables and supplies e — Cost of materials ratio at 47.5% vs. 45.5% in previous year
Slide 21: Investment in property, plant and equipment and depreciation
ECONOMIC DEVELOPMENT 2018 [INDUS] INVESTMENT IN PROPERTY, PLANT, AND EQUIPMENT AND INTANGIBLE ASSETS & DEPREC./AMORT. INVESTMENTS EXCEED DEPRECIATION EVEN AFTER IMPAIRMENT SYSTEMATIC DEPRECIATION — Up by 8.2% due to continued high investments in property, plant and equipment in past years (EUR 67.6
Slide 22: Investment in acquisitions
ECONOMIC DEVELOPMENT 2018 INVESTMENT IN ACQUISITIONS INVESTMENTS IN GROWTH OF PORTFOLIO COMPANIES INVESTMENTS — Investments in acquisitions down 64.5% (EUR 11.5 million vs. EUR 32.4 million) — No direct acquisition of portfolio companies in the fiscal year* NEW ACQUISITIONS AT SUB-SUBSIDIARY LEVEL —
Slide 23: Asset and capital structure
ECONOMIC DEVELOPMENT 2018 ASSET AND CAPITAL STRUCTURE STABLE BALANCE SHEET RATIOS AND SUSTAINABLE EQUITY BASE EQUITY — Equity up by 5.3% — Equity ratio of 41.3% clearly above target of 4o% NET LIABILITIES — Non-current financial liabilities up by 6.0% — Current financial liabilities up by 32.7% — Ca
Slide 24: Financing
ECONOMIC DEVELOPMENT 2018 FINANCING BROAD ACCESS TO FINANCE AND LONG-TERM REPAYMENT STRUCTURES Broadly diversified borrowings prevent dependence on individual lenders — Sustained comfortable financial resources and comprehensive bank commitments enable flexible investments — INDUS focuses primarily
Slide 25: Consolidated statement of cash flows
ECONOMIC DEVELOPMENT 2018 [INDUS] CONSOLIDATED STATEMENT OF CASH FLOWS FROM 1 JANUARY 2018 TO 31. DECEMBER 2018 Cash outflow at prior year level 135.9 OPERATING CASH FLOW CLEARLY Including fixed asset ; 9 . ABOVE PREVIOUS YEAR investments of EUR 90.9 million, Dedine by 14.9%, mainly Strong increase
Slide 26: Operating cash flow
ECONOMIC DEVELOPMENT 2018 OPERATING CASH FLOW FROM 1 JANUARY 2018 TO 31 DECEMBER 2018 [INDUS] 83.7 aia 1.0 ~47.2 71.2 (-14.3%) NVENTORY BUILD-UP BY EUR 65.6 MILLION + EUR 23.2 million for raw materials, consumables and supplies +EUR 25.1 million for work in progress INCLUDING IMPAIRMENT of +EUR 15.3
Slide 27: 600.0 15% 15% 15.0% 15.0% 500.0 13.0% 0 400 400.0 400 10% 10% 10.0%
600 600.0 600 15% 15% 15.0% 15.0% 540 500 500.0 500 13.0% 440 400 400.0 400 10% 10% 10.0% 10.0% 340 300 300.0 300 8.0% 240 200 200.0 200 5% 5% 5.0% 5.0% 140 3.0% 100 100.0 100 40 0 0% 0 0% 0.0 0.0% 0 0.0% -60 -2.0% 27
Slide 28: Sales and EBIT contributions of the segments
ECONOMIC DEVELOPMENT 2018 SALES AND EBIT CONTRIBUTIONS OF THE SEGMENTS [INDUS] CONSTRUCTION/INFRASTRUCTURE AND ENGINEERING MAKE HIGHER CONTRIBUTIONS TO REVENUES AND EARNINGS (EBIT)* 420.0 391.0 387.0 (24.5%) 358.7 (22.9%) (22.6%) (21.0%) 49.8 52.2 (34.8%) (36.4%) -4.3 (-3.0%) Construction? Automotiv
Slide 29: Construction/Infrastructure segment
ECONOMIC DEVELOPMENT 2018 CONSTRUCTION/INFRASTRUCTURE SEGMENT ONGOING BOOM IN THE CONSTRUCTION INDUSTRY SALES REVENUES — Increase at nearly all segment companies — Revenue growth of 8.6% (thereof 6.9% organic) — Addition of a supplier of room air conditioning systems PERSONNEL AND MATERIALS — Boom m
Slide 30: Automotive Technology segment
ECONOMIC DEVELOPMENT 2018 AUTOMOTIVE TECHNOLOGY SEGMENT SERIES SUPPLIER BUSINESS SUBJECT TO STRONG PRESSURE ON MARGINS SALES REVENUES — Sales revenues down by a moderate 0.8% on previous year — Forecast thus almost reached ("constant") EARNINGS — EBIT before impairment drops sharply by >60% — Signif
Slide 31: Engineering segment
ECONOMIC DEVELOPMENT 2018 ENGINEERING SEGMENT NEW ACQUISITIONS MAKE FIRST FULL-YEAR CONTRIBUTION TO GROWTH SALES REVENUES — Organic growth in particular attributable to strong logistics and heat- tracing systems operations — M+P and PEISELER fully consolidated for first time EARNINGS — High EBIT sli
Slide 32: Medical Engineering/Life Science segment
ECONOMIC DEVELOPMENT 2018 MEDICAL ENGINEERING/LIFE SCIENCE SEGMENT EXTREME INCREASE IN WAGES AT FOREIGN 14.9% % % PRODUCTION FACILITIES e ° ee ee 11.2% e SALES REVENUES — Almost at prior year level EARNINGS . 147.0 155.2 154.3 — EBIT below previous year at -16.8% — Margin improves over the course of
Slide 33: Metals Technology segment
ECONOMIC DEVELOPMENT 2018 METALS TECHNOLOGY SEGMENT PREVIOUS YEAR'S RESULT EXCEEDED IN SPITE OF IMPAIRMENTS SALES REVENUES Revenues rise again Growth primarily in carbide tools area MATERIALS Sharp rise in materials prices (metals) Price increases have not been passed on yet REPOSITIONING Situation
Slide 34: Drive Innovation focus: INDUS Development Bank
»DRIVE INNOVATION” FOCUS [INDUS] INDUS DEVELOPMENT BANK Support with more financial resources and know-how: We are expanding our human and economic resources. new — 18 projects with a total volume of EUR 9.8 million are currently underway; an amount of EUR 6.3 million has been committed for developm
Slide 35: Agenda
INDUS BUSINESS MODEL NEW STRATEGIC PROGRAM FISCAL YEAR 2018 SHARE AND DIVIDEND OUTLOOK 2019 APPENDIX [INDUS] 35
Slide 36: 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 37: Dividend proposal for the fiscal year 2018
SHARE AND DIVIDEND DIVIDEND PROPOSAL FOR THE FISCAL YEAR 2018 [INDUS] 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 46.4% 6 43.9% 48.0% 3.1% 3-8% 41.9% 42.7% e 2.7% 2.6% 2.5% oe
Slide 38: 2018: Challenging environment has noticeable impact on share price
SHARE AND DIVIDEND [INDUS] 2018: CHALLENGING ENVIRONMENT HAS NOTICEABLE IMPACT ON SHARE PRICE PERFORMANCE 20 4 23 Jan. 2018 e Share price high of EUR 66.00 27. Dec. 2018 : 15 Mar. 2019 10 + Share price low ! Share price of EUR 37.65 | at EUR 45.90 As at end of 2018 7 DAX -18.3% SDAX -20.0% -30 INDUS
Slide 39: Strong share price performance over the past 10 years
SHARE AND DIVIDEND [INDUS] STRONG SHARE PRICE PERFORMANCE* OVER THE PAST 10 YEARS As atend of Feb. 2019 2018 “°7 — DAX +141.2% ~~ 91 INDUS + 212.3% °°) SDAX +290.8% Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 — INDUS Holding AG -—-DAX ——SDAX *Indexed, in %, data as a
Slide 40: Agenda
VORSTELLUNG DR. JORN GROBMANN INDUS BUSINESS MODEL NEW STRATEGIC PROGRAM FISCAL YEAR 2018 SHARE AND DIVIDEND OUTLOOK 2019 APPENDIX [INDUS] 40
Slide 41: Outlook 2019: Anticipated framework conditions
OUTLOOK 2019 ANTICIPATED FRAMEWORK CONDITIONS MACROPOLITICAL AND GEOPOLITICAL SITUATION HARBORS FURTHER RISKS WORLD ECONOMIC FORECASTS Economy will continue to grow at a slower pace Capacity utilization in advanced economies will barely increase Production in emerging markets will grow only moderate
Slide 42: INDUS sectors
INDUS INDUS SECTORS CONSTRUCTION INDUSTRY — Companies have started the new year with positive expectations — Growth driven by residential, commercial and public-sector construction VEHICLE MARKET — Stronger focus on electromobility and digitization — Revenues in world market expected to grow by only
Slide 43: 600.0 15% 15.0% 15.0% 500.0 13.0% 15% 400 440 400 400.0 400 10% 10.0%
600 600 600.0 600 15% 15.0% 15.0% 500 540 500 500.0 500 13.0% 15% 400 440 400 400.0 400 10% 10.0% 10.0% 300 340 300 300.0 300 8.0% 240 200 200 200.0 200 5% 5.0% 5.0% 140 100 3.0% 100 100.0 100 40 0 0% 0 10% 0.0 0.0% 0 0.0% -60 -2.0% 43
Slide 44: Guidance on segment level
OUTLOOK 2019 [INDUS] GUIDANCE ON SEGMENT LEVEL EBIT MARGIN TARGET OF 9-10% FOR 2019 EBIT MARGIN OF 10% FOR OVERALL PORTFOLIO REMAINS THE MEDIUM-TERM TARGET GROUP ACTUAL 2018 PLAN 2019 Sales EUR 1.71 billion EUR 1.72 - 1.77 billion EBIT EUR 134.7 million EUR 156 - 162 million Acquisitions 2 complemen
Slide 45: Thank you very much
THANK YOU VERY MUCH [INDUS] FOR YOUR ATTENTION! Starting on the left: Dr. Jérn GroBmann (Board member), Axel Meyer (Board member), Dr.-Ing. Johannes Schmidt (Chairman of the Board), Rudolf Weichert (Board member) 45
Slide 46: Agenda
INDUS BUSINESS MODEL NEW STRATEGIC PROGRAM FISCAL YEAR 2018 SHARE AND DIVIDEND OUTLOOK 2019 APPENDIX [INDUS] 46
Slide 47: Financial calendar
FINANCIAL CALENDAR PUBLICATION AND CAPITAL MARKET DATES IN 2019 DATE EVENT [INDUS] VENUE 27 March 2019 Annual Report on the results of FY 2018 Publication 28 March 2019 Analysts' Conference on the results of FY 2018 Frankfurt/Main 2 April 2019 Bankhaus Lampe Deutschland Conference Baden-Baden 14 May
Slide 48: 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 49: Fiscal year 2018 at a glance
ECONOMIC DEVELOPMENT 2018 FISCAL YEAR 2018 AT A GLANCE [INDUS] EARNINGS FIGURES 2018 2017 —~Ain% CASHFLOW FIGURES 2018 2017 ~Ain% Sales 1,710.8 __1,640.6 4.3 Operating cashflow 96.0 145.0 -33.8 EBITDA 218.4 215.3 1.4 Cash flow EBIT before impairments 150.8 152.9 -1.4 from operating activity 74.7 124
Slide 50: Sales and earnings contributions of the segments
ECONOMIC DEVELOPMENT 2018 [INDUS] SALES AND EARNINGS CONTRIBUTIONS OF THE SEGMENTS AGAIN OUTSTANDING RESULTS FOR CONSTRUCTION/INFRASTRUCTURE AND ENGINEERING Medical Construction! Automotive Engineering/ Metals {in EUR millions) Infrastructure Technology Engineering Life Science Technology Sales with
Slide 51: 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 52: 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 53: Construction/Infrastructure segment companies
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 54: Automotive Technology segment companies
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 55: Engineering segment companies
INDUS PORTFOLIO COMPANIES ENGINEERING SEGMENT COMPANIES DESCRIPTION [INDUS] LOCATIONS Robotic hands and automation systems for manufacturers Overath (DE), Worth an der Donau (DE), Plymouth (US) Specialist for logistics and material flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmalkalden
Slide 56: Medical Engineering/Life Science companies
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 57: Metals Technology companies
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 58: 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