Indus Holding Ag · XETR:INH
Indus — 9M 2021 Earnings Presentation
61 slides from Indus's earnings presentation, Nov 11, 2021
Slide 1: Presentation for the First Nine Months of 2021
[INDUS] PRESENTATION FOR THE FIRST NINE MONTHS OF 2021 Bergisch Gladbach, November 11, 2021
Slide 2: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS —- 9M 2021 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES - 9M 2021 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX NaoaufF wn =
Slide 3: Material Developments 9M 2021
MATERIAL DEVELOPMENTS —- 9M 2021 [INDUS] INDUS IS GROWING IN A COMPLEX MARKET ENVIRONMENT — Pleasing sales development in the Construction/Infrastructure and Engineering segments continues — Automotive Technology segment in particular impacted by chip shortage, material scarcity and a deterioration
Slide 4: +5.7 pp 9M 2020 9M 2021
+11.4% 1.296,4 1.164,1 >100% +5.7 pp 78.6 4.3 0.4 6.1 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 4
Slide 5: 1.7 pp 9M 2020 9M 2021
0.7% 518.9 522.7 +24.5% 1.7 pp 98.2 74.1 39.1 40.8 9M 2020 9M 2021 Dec. 31, 2020 Sep. 30, 2021 Dec. 31, 2020 Sep. 30, 2021 5
Slide 6: Investment in Growth Industries
INVESTMENT IN GROWTH INDUSTRIES [INDUS] INDUS ACQUISITION MODEL FOR FAMILY-RUN BUSINESSES REMAINS ATTRACTIVE CURRENT STATUS: FURTHER M&A PROJECTS UNDER WAY — Automation and measuring technology and control engineering FUTURE — Infrastructure and logistics technology Promising transactions currently
Slide 7: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS —- 9M 2021 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES - 9M 2021 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX Nau fF wn =
Slide 8: The SME Holding Company
THE SME HOLDING COMPANY [INDUS] BUYING AND DEVELOPING HIDDEN CHAMPIONS AMONG SMES We primarily acquire owner- a — managed companies operating in Tren RTT) | alltel. |_| BP | |e «= the manufacturing SME sector. We ER a “guide their long-term orientation ee si J LE | and support their entrepreneurial
Slide 9: INDUS Business Model
INDUS BUSINESS MODEL GERMAN SMES ARE OUR PASSION — INDUS is a leading specialist in the long-term investment in and development of companies in the SME sector of German-speaking countries — Investing in hidden champions in the manufacturing SME sector — Diversified portfolio of 47 companies — Growth
Slide 10: INDUS Business Model
INDUS BUSINESS MODEL INDUS AS A... MAJORITY SHAREHOLDER — Long-term perspective — Operational responsibility remains with the portfolio companies — Preserving corporate culture tis Ohi FINANCIAL HOLDING COMPANY — Financing activities as portfolio manager — Accounting, tax, legal at holding company l
Slide 11: INDUS Portfolio Companies Are Represented Internationally
INDUS BUSINESS MODEL [INDUS] INDUS PORTFOLIO COMPANIES ARE REPRESENTED INTERNATIONALLY Contribution to sales by region =Germany = Europe» Rest of world Employees by region =Germany = Europe Rest of world THE NDUS GROUP | Sales: EUR 1.56 billion Employees: 10,644 32 (as at Dec. 31,2020) COUNTRIES ARO
Slide 12: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS —- 9M 2021 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES - 9M 2021 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX Nau fF wn =
Slide 13: The PARKOUR Strategy
THE PARKOUR STRATEGY [INDUS] IMPROVING PERFORMANCE EXPANSION IN THE oy, INNOVATION GROWTH INDUSTRIES 2@s wy TECHNOLOGICAL CHANGE A’ DIGITALIZATION OPERATIONAL INTERNATIONALIZATION EXCELLENCE STRENGTHENING PORTFOLIO 1 STRUCTURE 2 DRIVING INNOVATION 3 IMPROVING PERFORMANCE 13
Slide 14: INDUS Shows Agility in Face of Challenging Conditions
INDUS SHOWS AGILITY IN FACE OF CHALLENGING CONDITIONS PARKOUR EVOLUTION 2025 — CONSTANTLY RESPONDING TO CHANGES 2019 2020 2021 — Retaining portfolio companies’ independence Development offers for portfolio companies — Innovation development bank and operational excellence programs Expanding the Boar
Slide 15: Interim Sprint to Spur Sustainable Improvement in Income
INTERIM SPRINT TO SPUR SUSTAINABLE IMPROVEMENT IN INCOME INTERIM SPRINT PACKAGE OF MEASURES MAJOR WEAKNESSES ALREADY SUCCESSFULLY REMEDIED AUTOMOTIVE TECHNOLOGY AND METALS TECHNOLOGY SEGMENTS AUTOMOTIVE TECHNOLOGY SEGMENT Growth in sales 9M 2021 vs. previous year Furniture fittings systems > SIMON |
Slide 16: 2015 2017 2019 2021 2016 2018 2020
2015 2017 2019 2021 2016 2018 2020 16
Slide 17: Jungmann Systemtechnik GmbH & Co. KG
JUNGMANN SYSTEMTECHNIK GMBH & CO. KG [INDUS] JANUARY 2021; INDUS ACQUIRES CONTROL ROOM SPECIALIST — Attractive boost to Engineering segment — Conceptual design, construction and maintenance of control room solutions — Traditional areas of activity are production control centers for industry, control
Slide 18: WIRUS Fenster GmbH & Co. KG
WIRUS FENSTER GMBH & CO. KG [INDUS] MAY 2021; INDUS ACQUIRES MANUFACTURER OF WINDOWS AND DOORS WITH HIGH EARNING POWER Attractive company to boost the Construction/Infrastructure segment Rapidly growing full-service provider for windows and doors made of plastic and aluminum: high quality assured th
Slide 19: FLACO Geräte GmbH - Acquisition of Sub-Subsidiary
FLACO GERATE GMBH - ACQUISITION OF SUB-SUBSIDIARY [INDUS] JUNE 2021; INDUS STRENGTHENS PORTFOLIO WITH A FLUID SYSTEMS SPECIALIST — _ Niche provider of refueling technology and workshop solutions worldwide, including systems to measure, control and dispense mineral oils, diesel and AdBlue as well as
Slide 20: 2021: Focus on Strengthening the Portfolio Structure
2021: FOCUS ON STRENGTHENING THE PORTFOLIO STRUCTURE VALUE-ADDING ACQUISITIONS IN GROWTH INDUSTRIES [INDUS] VALUE-ADDING ACQUISITIONS IN GROWTH INDUSTRIES — Automation and measuring technology and control engineering iw 6 FUTURE — Infrastructure and logistics technology WIRUS iP © — Construction tec
Slide 21: 2. Driving Innovation
2. DRIVING INNOVATION HOW INDUS SUPPORTS INNOVATION SS DEVELOPMENT BANK © Supporting innovation © Deriving innovation projects strategies © Development of new © Overcoming anti- technologies and markets innovation bias © With max. 80% of the project volume toad map STRATEGIC PROJECTS © Technology &
Slide 22: Our Goals for the Coming Year
OUR GOALS FOR THE COMING YEAR [INDUS] INDUS — A STRONG PARTNER FOR OUR PORTFOLIO COMPANIES TALIZATION 22
Slide 23: + 15 % CAGR
+ 15 % CAGR 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020/2021 23
Slide 24: 3. Improving Performance — Operational Excellence
3. IMPROVING PERFORMANCE — OPERATIONAL EXCELLENCE ON TRACK TO ACHIEVING 2025 TARGETS STATUS CHECK © Identifying and prioritizing potential for improvement © Deriving concrete recommendations for action SS IMPLEMENTATION © Support for transformation and optimization projects © Sparring partner, proje
Slide 25: 3. Improving Performance — Financial Excellence
3. IMPROVING PERFORMANCE — FINANCIAL EXCELLENCE SOLID FINANCING BASE SECURES PROFITABLE GROWTH = SS — SS = Ss SS —= — Ss STABILITY & LIQUIDITY © Scope for action secured with investment-grade credit rating © Broadly diversified financing basis and long- standing relationships with lenders wl/S= ooh
Slide 26: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS —- 9M 2021 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES - 9M 2021 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX Naoauf wn = 26
Slide 27: Key Earning Figures
− KEY EARNING FIGURES (in EUR million) 9M 2021 9M 2020 ∆ in % Sales 1,296.4 1,164.1 11.4 − EBITDA 157.7 114.4 37.3 − EBIT 78.6 4.3 >100 EBIT margin (in %) 6.1 0.4 >100 EBT 63.6 -6.3 >100 Earnings after taxes 39.4 -33.5 >100 − CASH FLOW KEY FIGURES − Operating cash flow 74.1 98.2 -24.5 Cash flow from
Slide 28: INDUS Capital Structure
INDUS CAPITAL STRUCTURE [INDUS] STRONG FOUNDATION FOR FURTHER GROWTH CAEL 162.2 522.7 ho. 8% EUR million EUR million lester te CASH AND CASH EQUIVALENTS NET DEBT (as of Sep. 30, 2021) (as of Sep. 30, 2021) i LEVERAGE RATIO | ENSURES AGILITY <3 years 2021 TARGET SOLID FINANCING STRUCTURE 28
Slide 29: Sector Environment in Q3 2021
SECTOR ENVIRONMENT IN Q3 2021 [INDUS] DOWNTURN IN AUTOMOTIVE TECHNOLOGY AFFECTS ECONOMY AS A WHOLE cs Ll [coy t jel l2ly CONSTRUCTION AUTOMOTIVE MEDICAL ENGINEERING/ — Rising material costs — Chip shortage having a — Incoming orders climb — Coronavirus had a — Slowing momentum in beginning to affect
Slide 30: +14.3% +19.7% +6.5% +7.5% +3.7% 295.6 338.0 311.9 303.3 323.0 198.2 213.0 260.5 106.7
+14.3% +19.7% +6.5% +7.5% +3.7% 295.6 338.0 311.9 303.3 323.0 198.2 213.0 260.5 106.7 110.6 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 30
Slide 31: +2.1% >100% >100% +44.6% +15.4% 53.1 54.2 35.8 14.3 22.7 7.8 9.0 10.2 -74.9
+2.1% >100% >100% +44.6% +15.4% 53.1 54.2 35.8 14.3 22.7 7.8 9.0 10.2 -74.9 -41.5 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 31
Slide 32: Construction/Infrastructure Segment Figures
(in EUR million) 9M 2021 9M 2020 ∆ in % Revenue with external third parties 338.0 295.6 14.3 − EBITDA 68.4 64.7 5.7 − Depreciation/amortization -14.2 -11.6 -22.4 − EBIT 54.2 53.1 2.1 EBIT margin (in %) 16.0 18.0 -2.0pp − Investments 43.4 11.4 > 100 − 18.0% +14.3% +2.1% 16.0% 338.0 53.1 54.2 − 295.6
Slide 33: Development in the Automotive Technology Segment (2019-2020)
DEVELOPMENT IN THE AUTOMOTIVE TECHNOLOGY SEGMENT (2019-2020) [INDUS] DETERIORATION IN MARKET OUTLOOK HAS NEGATIVE IMPACT ON SEGMENT MOMENTUM MARKET DEVELOPMENT AUTOMOTIVE TECHNOLOGY SEGMENT J us Structural crisis in the automotive sector intensifies. RK) (9 (EUR million): 350.3 EBIT (EUR million): -
Slide 34: 2021: External Impacts Exert Greater Pressure on Segment Momentum
2021: EXTERNAL IMPACTS EXERT GREATER PRESSURE ON SEGMENT MOMENTUM [INDUS RISING RAW MATERIALS PRICES AND CHIP SHORTAGE NEGATIVELY AFFECT OPERATING PERFORMANCE MARKET DEVELOPMENT AUTOMOTIVE TECHNOLOGY SEGMENT Qi 2021 Asat May 11, 2021 Q2 2021 Asat ‘August 11, 2021 Q3 2021 As at November 11, 200 al >
Slide 35: Future-Proofing the Automotive Technology Segment
FUTURE-PROOFING THE AUTOMOTIVE TECHNOLOGY SEGMENT [INDUS] UPDATE ON THE PORTFOLIO COMPANIES INDEPENDENCE OF PASSENGER INDEPENDENT CONV. DRIVE COMPANY DESCRIPTION CAR SERIES PROD. BUSINESS TECHNOLOGY FOCUS ON PROMISING DRIVE FORMS, STRATEGY AURORA :: Heating and air conditioning systems for vehicles
Slide 36: Automotive Technology Segment Figures
(in EUR million) 9M 2021 9M 2020 ∆ in % Revenue with external third parties 213.0 198.2 7.5 − EBITDA -13.6 -20.2 32.7 Depreciation/amortization -19.7 -20.9 5.7 EBIT before impairment -33.3 -41.1 19.0 − EBIT margin before impairment in % -15.6 -20.7 5.1pp Impairment -8.2 -33.8 75.7 − EBIT -41.5 -74.9
Slide 37: Engineering Segment Figures
(in EUR million) 9M 2021 9M 2020 ∆ in % Revenue with external third parties 311.9 260.5 19.7 − EBITDA 52.2 31.9 63.6 Depreciation/amortization -16.4 -17.5* 6.3 − EBIT 35.8 14.3 >100 EBIT margin (in %) 11.5 5.5 6.0pp − Investments 34.0 2.5 >100 − − 11.5% +19.7% >100% − 311.9 5.5% 260.5 35.8 − 14.3 −
Slide 38: Medical Engineering/Life Science Segment Figures
(in EUR million) 9M 2021 9M 2020 ∆ in % Revenue with external third parties 110.6 106.7 3.7 − EBITDA 16.7 15.3 9.2 Depreciation/amortization -7.7 -7.5 -2.7 − EBIT 9.0 7.8 15.4 EBIT margin (in %) 8.1 7.3 0.8pp − Investments 7.7 3.0 >100 − +3.7% 8.1% 7.3% 110.6 +15.4% − 106.7 − 7.8 9.0 − 9M 2020 9M 20
Slide 39: Metals Technology Segment Figures
(in EUR million) 9M 2021 9M 2020 ∆ in % Revenue with external third parties 323.0 303.3 6.5 − EBITDA 39.2 28.3 38.5 Depreciation/amortization -11.5 -18.1* +36.4 − EBIT 27.7 10.2 >100 EBIT margin (in %) 8.6 3.4 5.2pp Investments 5.7 3.7 54.1 − − − +6.5% >100% 8.6% 303.3 323.0 3.4% 27.7 − 10.2 − − 9M
Slide 40: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS —- 9M 2021 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES - 9M 2021 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX Nau FWN = 40
Slide 41: 2021 Remains a Year of Transition
2021 REMAINS A YEAR OF TRANSITION [INDUS] AUTOMOTIVE TECHNOLOGY CURBING POSITIVE OVERALL MOMENTUM — Further recovery, especially in the Engineering, Metals Technology and Medical Engineering/Life Science segments; continued strong performance in Construction/Infrastructure segment — INTERIM SPRINT m
Slide 42: Economic Environment — Outlook for 2021
ECONOMIC ENVIRONMENT — OUTLOOK FOR 2021 SIGNS POINT TO A SLOWDOWN IN RECOVERY — Development in the global economic situation is not uniform — German industry is heavily impacted by supply bottlenecks and rising materials prices; economic forecasts for Germany and Europe lowered — Momentum in U.S. ec
Slide 43: Sector Environment — Outlook for 2021
SECTOR ENVIRONMENT — OUTLOOK FOR 2021 NEW UNCERTAINTIES IN THE AUTOMOTIVE TECHNOLOGY SECTOR IMPACTING OVERALL ECONOMY CONSTRUCTION! INFRASTRUCTURE — Material shortages leading to delays — The industry is still expected to see a nominal decline in 2021 — Outlook for 2021 Temains positive AUTOMOTIVE T
Slide 44: PLAN PLAN PLAN
2020 PLAN 2020 PLAN 2020 PLAN 2020 PLAN 2020 PLAN 2020 PLAN Slight 1.56 1.60 to 1.75 384.0 Steep rise 269.2 Slight rise 370 Steep rise 142.1 393.6 Slight rise rise Slight 25.1 95 to 110 64.5 Slight rise -87.8 Steep rise 31.4 Steep rise 10.2 14.4 Steep rise rise 1.6 5.5 to 6.5 16.8 13 to 15 -32.6 Neg
Slide 45: Our Seven-Point Target for 2025
OUR SEVEN-POINT TARGET FOR 2025 ... [INDUS] SALES AND EBIT MARGIN TARGETS 2025 REMAIN GUIDING PRINCIPLES IN TURBULENT MARKET ENVIRONMENT 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 r
Slide 46: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS —- 9M 2021 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES - 9M 2021 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX Nou FwWN = 46
Slide 47: Dividends and Dividend Yield
60.0% 46.4% 48.0% 3.8% 41.9% 42.7% 43.9% 3.1% 2.7% 2.6% 2.5% 2.5% 2.1% 24.6% 77.20 83.50 76.30 79.60 €1.35 €1.50 €1.50 63.10 70.10 €1.20 €1.20 €0.80 €0.80 35.80 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Dividends Dividend yield INDUS Holding AG balance sheet profit* Distr
Slide 48: VERSICHERUNGSKAMMER BAYERN 17.7% H. J. SELZER ET AL. 5.7%
VERSICHERUNGSKAMMER BAYERN 17.7% H. J. SELZER ET AL. 5.7% WIRTGEN INVEST HOLDING 3.7% EPINA 2.7% FREE FLOAT* 70.2% 48
Slide 49: Agenda
AGENDA [INDUS] MATERIAL DEVELOPMENTS —- 9M 2021 OUR DNA PARKOUR — UPDATE INDUS IN FIGURES - 9M 2021 OUTLOOK SHAREHOLDER STRUCTURE AND DIVIDENDS APPENDIX NaoauFfF wn = 49
Slide 50: Q3 2020 Q3 2021 Q3 2020
+14.4% 446.1 389.9 -1.3% -0.8pp 22.6 * 22.3 ** 5,8 5,0 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 50
Slide 51: Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020
+26.0% +19.4% +7.6% +5.9% +3.9% 121.8 113.1 96.9 104.3 96.7 65.6 69.5 94.7 37.4 36 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 51
Slide 52: Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020
+10.1% -83.3% +56.9% -13.5% +50.0% 16.9 18.6 16.0 10.2 ** 3.7 3.2 5.4 *** 8.1 -12.0 -22.0 * Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 52
Slide 53: Thank You
THANK YOU FOR LISTENING! From left to right: Rudolf Weichert (Board of Management) Axel Meyer (Board of Management) Dr.-Ing. Johannes Schmidt (Chairman of the Board) Dr. Jorn Gro&mann (Board of Management)
Slide 54: Contact
CONTACT [INDUS] INVESTOR RELATIONS & PUBLIC RELATIONS INVESTOR RELATIONS PUBLIC RELATIONS DAENE SANAC NINA WOLE ®& +49 (0) 2204-4000-32 +49 (0) 2204-4000-73 ‘ KC BS investor.relations@indus.de presse@indus.de
Slide 55: Financial Calendar
FINANCIAL CALENDAR FINANCIAL EVENTS 2021/2022 [INDUS] DATE EVENT LOCATION November 11, 2021 Publication of the interim report for Q3/9M 2021 Publication February 23, 2022 Publication of preliminary figures for 2021 Publication March 23, 2022 Publication of the annual report for the 2021 fiscal year
Slide 56: INDUS Portfolio Companies
INDUS PORTFOLIO COMPANIES [INDUS] CONSTRUCTION/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) w Sealants made from silicone
Slide 57: INDUS Portfolio Companies
INDUS PORTFOLIO COMPANIES AUTOMOTIVE TECHNOLOGY COMPANY DESCRIPTION [INDUS] LOCATION AURORA ¢? Heating and air conditioning systems for vehicles Mudau (DE), Grand Rapids (US), Istanbul (TR), Nuenen (NL), Oettingen (DE), Shanghai (CN), Weert (NL) asreyse? Innovative cold extrusion parts, turning part
Slide 58: INDUS Portfolio Companies
INDUS PORTFOLIO COMPANIES [INDUS] ENGINEERING COMPANY DESCRIPTION LOCATION 2 Robotic hands and automation systems for manufacturers Overath (DE), Plymouth (US), Wérth an der Donau (DE) Specialist in logistics and material flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmalkalden (DE) elth
Slide 59: INDUS Portfolio Companies
INDUS PORTFOLIO COMPANIES MEDICAL ENGINEERING/LIFE SCIENCE [INDUS] COMPANY DESCRIPTION LOCATION imeco Assembly of non-woven fabrics for medical, cosmetic, cleaning and care applications Goldbach (DE), Elterlein (DE), Lubari (PL) mikrcp Miniaturized precision optics Wittenbach (CH), Ka¢ (SRB), Sauerl
Slide 60: INDUS Portfolio Companies
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) aoe Metal and lead parts, components, switch cabinets, m
Slide 61: Disclaimer
INDUS HOLDING AG [INDUS] 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 decisio