Indus Holding Ag · XETR:INH
Indus — H1 2023 Earnings Presentation
49 slides from Indus's earnings presentation, Aug 10, 2023
Slide 1: Presentation of Income for H1 2023
PRESENTATION OF INCOME FOR H1 2023 BERGISCH GLADBACH, AUGUST 10th 2023
Slide 2: Agenda
AGENDA 1 MAJOR EVENTS H1 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 2
Slide 3: Material Developments – H1 2023
MATERIAL DEVELOPMENTS – H1 2023 GOOD PERFORMANCE DESPITE MUTED ECONOMIC ENVIRONMENT Uncertain economic environment with deteriorating tendency illustrated by nearly all leading indicators Despite unfavorable economic conditions revenue growth of 2% in H1 with 1% organic revenue growth Good rev
Slide 4: Agenda
AGENDA 1 MAJOR EVENTS H1 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 4
Slide 5: The INDUS Core: 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 PROMISE 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 S
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 H1 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 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 THE DRIVING IMPROVING STRIVING FOR PORTFOLIO INNOVATION PERFORMANCE SUSTAINABILITY STRUCTURE 10
Slide 11: Clearing Out and Starting Fresh at INDUS
OVERVIEW LOOKING TO 2025: WE’RE REFINING OUR STRATEGY WE WILL... ... Act as a value-oriented portfolio company with a clear technological focus CLEARING OUT AND ... Focus on three promising core segments as a Group ... Free up valuable resources and management capacities for development STARTING ...
Slide 12: PARKOUR PERFORM – Overview
PARKOUR PERFORM – OVERVIEW THREE OVERARCHING TARGETS MORE FOCUS ON A CLEARLY STRUCTURED INTENSIVE SUPPORT FOR FUTURE FIELDS PORTFOLIO THE PORTFOLIO COMPANIES Megatrends Focus Segment management Aligning segments with relevant Realignment of the Automotive Segments managed by members of future
Slide 13: Discontinued Operations
DISCONTINUED OPERATIONS SCHÄFER AND SELZER DISPOSED EARLIER THAN PLANNED IN JULY 2023 AUTOMOTIVE TECHNOLOGY DISCONTINUED OPERATIONS THIS SEGMENT HAS BEEN DISSOLVED We will be parting ways with companies that have been - Disposed in July 2023 making losses for many years Segment companies focused
Slide 14: INDUS with a Focused Portfolio of Three Segments
INDUS WITH A FOCUSED PORTFOLIO OF THREE SEGMENTS SCHÄFER AND SELZER DISPOSED EARLIER THAN PLANNED IN JULY 2023 SCHÄFER and SELZER disposed to strategic buyers in July 2023 SCHÄFER sold to Callista Portfolio Holding GmbH, Munich; closing on July 31, 2023 SELZER sold to Mutares SE & Co. KGaA, Mu
Slide 15: The New INDUS Operating System
THE NEW “INDUS OPERATING SYSTEM” CONSISTENT PORTFOLIO DEVELOPMENT 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 excellence
Slide 16: New Segment Management at a Glance
NEW SEGMENT MANAGEMENT AT A GLANCE FIFTH BOARD MEMBER TO START ON OCTOBER 1, 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, Strengthening the Por
Slide 17: Introduction of Additional Key Figure: Free Cash Flow
INTRODUCTION OF ADDITIONAL KEY FIGURE FREE CASH FLOW OPERATING CASH FLOW Introduction of free cash flow as an additional key figure improves transparency regarding the funds freely available to the Group Cash outflow from investments in Free cash flow creates the flexibility to: - property, plan
Slide 18: Agenda
AGENDA 1 MAJOR EVENTS H1 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 18
Slide 19: INDUS in Figures – Key Figures H1 2023
INDUS IN FIGURES KEY FIGURES H1 2023 SALES* EBIT* EBIT MARGIN* FREE CASH FLOW* (in EUR million) (in EUR million) (in %) (in EUR million) -2.9% +2.0% > 100 % 87.4 84.9 -0.5 pp 886.3 904.1 35.2 9.9 9.4 -17.6 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 * from continuing operations 1
Slide 20: INDUS in Figures – Key Figures H1 2023
INDUS IN FIGURES KEY FIGURES H1 2023 OPERATING CASH FLOW* NET DEBT EQUITY RATIO (in EUR million) (in EUR million) (in %) +5.1% 593.5 624.0 >100% -0.7 pp 39.2 36.3 35.6 -15.1 31.12.2022 30.06.2023 31.12.2022 30.06.2023 H1 2022 H1 2023 * from continuing operations 20
Slide 21: Overview – H1 2023
OVERVIEW – H1 2023 GOOD PERFORMANCE IN CHALLENGING ENVIRONMENT KEY FIGURES: EARNINGS (in EUR million) H1 2023 H1 2022 ∆ in % Sales 904.1 886.3 2.0 Increase in sales, despite muted economic EBITDA 128.1 128.6 -0.4 environment. EBIT 84.9 87.4 -2.9 Organic growth in sales of 1,0 % and EBIT margin (
Slide 22: Free Cash Flow Development
FREE CASH FLOW DEVELOPMENT FAVORABLE WORKING CAPITAL DYNAMICS LEAD TO INCREASE IN FREE CASH FLOW Introduction of free cash flow as an additional management in EUR million H1 2023 H1 2022 variable improves transparency regarding the funds freely available to the Group Operating cash flow from conti
Slide 23: Revenue by Segment
REVENUE BY SEGMENT INCREASE IN SALES FOR TWO OUT OF THREE SEGMENTS ENGINEERING INFRASTRUCTURE MATERIALS -0.9% +2.9% +4.0% 294.0 291.3 322.3 331.5 269,8 280,7 Sales (in EUR million) H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 23
Slide 24: EBIT per Segment
EBIT PER SEGMENT STRONG DEVELOPMENT IN MATERIALS SEGMENT ENGINEERING INFRASTRUCTURE MATERIALS -29.1% +15.1% +4.4% 35.4 38.1 33.1 24.8 25.9 25.1 EBIT (in EUR million) H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 24
Slide 25: Engineering – Overview of New Segments
ENGINEERING OVERVIEW – NEW SEGMENTS SINCE JANUARY 1, 2023 THIS SEGMENT POOLS COMPANIES FROM THE FOLLOWING FIELDS: ENGINEERING Automation/robotics Sensor and measuring technology Specialized machinery/equipment construction MEGATRENDS (e.g., energy, food and packaging technology) Digitalizati
Slide 26: Engineering – Stable Margin Year-on-Year
ENGINEERING STABLE MARGIN COMPARED YEAR-ON-YEAR Organic growth in sales of 1,2 % and inorganic growth in sales of 2,8 % INDUSTRY TREND from HEIBER + SCHRÖDER and HELD (acquisitions in 2022) According to VDMA, slight decline in incoming orders Strongest growth in sales of the three segments; in
Slide 27: Engineering – Overview of Key Figures
ENGINEERING OVERVIEW OF KEY FIGURES (in EUR million) H1 2023 H1 2022 ∆ in % Revenue with external third parties 280.7 269.8 4.0 2023 FORECAST unchanged EBITDA 41.8 39.6 5.6 Slight rise in sales Depreciation/amortization -15.9 -14.8 -7.4 Strong rise in income EBIT 25.9 24.8 4.4 EBIT margin: 9–1
Slide 28: Infrastructure – Overview of New Segments
INFRASTRUCTURE OVERVIEW – NEW SEGMENTS SINCE JANUARY 1, 2023 THIS SEGMENT POOLS COMPANIES FROM THE FOLLOWING FIELDS: INFRASTRUCTURE Construction and building technology Telecommunications infrastructure Air-conditioning technology MEGATRENDS Mobility and urbanization Digitalization Susta
Slide 29: QUICK Bauprodukte GmbH
QUICK BAUPRODUKTE GMBH CLOSED: INDUS PORTFOLIO COMPANY BETOMAX ACQUIRES QUICK BAUPRODUKTE QUICK Bauprodukte is a leading specialist for standard and special parts for bridge building, overground and underground construction, and tunnel construction Based in Schwerte Annual sales of approx. EUR
Slide 30: Infrastructure – Subdued Sector Environment
INFRASTRUCTURE SUBDUED SECTOR ENVIRONMENT AFFECTS PERFORMANCE Due to subdued sentiment in the construction sector especially new buildings, sales slightly decreasing INDUSTRY TREND Rising material prices still impede on segment development Negative trend since the beginning of the year Dispr
Slide 31: Infrastructure – Overview of Key Figures
INFRASTRUCTURE OVERVIEW OF KEY FIGURES (in EUR million) H1 2023 H1 2022 ∆ in % Revenue with external third parties 291.3 294.0 -0.9 2023 FORECAST slightly adjusted EBITDA 37.8 47.5 -20.4 Slight rise in sales Depreciation/amortization -12.7 -12.1 -5.0 Strong rise in EBIT EBIT 25.1 35.4 -29.1 EB
Slide 32: Materials – Overview of New Segments
MATERIALS OVERVIEW – NEW SEGMENTS SINCE JANUARY 1, 2023 THIS SEGMENT POOLS COMPANIES FROM THE FOLLOWING FIELDS: MATERIALS Metal forming and processing Metal creation (carbides and blasting agents) MEGATRENDS Medical disposables and aids Sustainability Mobility and urbanization Demographi
Slide 33: Materials – Good EBIT Performance in H1
MATERIALS GOOD EBIT PERFORMANCE IN H1 COMPARED TO PREVIOUS YEAR Growth in sales of 2.9% purely organic; INDUSTRY TREND growth for majority of all segment companies Order backlog in the sector remains high despite Normalization of pricing dynamics leads to increase of EBIT-Margin decreasing dem
Slide 34: Materials – Overview of Key Figures
MATERIALS OVERVIEW OF KEY FIGURES (in EUR million) H1 2023 H1 2022 ∆ in % Revenue with external third parties 331.5 322.3 2.9 2023 FORECAST slightly adjusted EBITDA 52.3 46.9 11.5 Slight rise in sales Depreciation/amortization -14.2 -13.8 -2.9 Increase in EBIT EBIT 38.1 33.1 15.1 EBIT margin:
Slide 35: Agenda
AGENDA 1 MAJOR EVENTS H1 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 35
Slide 36: Economic Environment – Outlook for 2023
ECONOMIC ENVIRONMENT – OUTLOOK FOR 2023 OUTLOOK FOR GERMAN ECONOMY DETERIORATING Economic stagnation paired with pessimism in society leads to deterioration of German economic outlook Decrease in incoming orders in industrial sector and positive momentum from investment and exports Supply bott
Slide 37: Updated Segment Forecast
UPDATED SEGMENT FORECAST SEGMENT MATERIALS PERFORMING BETTER THAN EXPECTED Actual 2022 Forecast March 2023 Forecast August 2023 Engineering Sales EUR 580.9 million Slightly increasing sales Slightly increasing sales EBIT EUR 47.4 million Strongly increasing result Strongly increasing result EBIT mar
Slide 38: 2023 Forecast (Continuing Operations) – Confirmed
2023 FORECAST (FOR CONTINUING OPERATIONS) – CONFIRMED INCREASE IN EBIT EXPECTED FOR 2023 GROUP Forecast 2022 2023 Sales (in EUR billion) 1.80 1.90–2.00 (lower end) EBIT (in EUR million) 133.7 145–165 EBIT margin (in %) 7.4 7.0 to 8.0 (upper end) Free cash flow (in EUR million) 101.5 >100 Acquisition
Slide 39: Agenda
AGENDA 1 MAJOR EVENTS H1 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 39
Slide 40: Current Shareholder Structure
CURRENT SHAREHOLDER STRUCTURE ANCHOR SHAREHOLDERS SUPPORT THE LONG-TERM CORPORATE STRATEGY SHAREHOLDER STRUCTURE OF INDUS HOLDING AG WKN/ISIN 620010/DE 000 620 010 8 Foundation/IPO 1986/1995 VERSICHERUNGSKAMMER Financial year Jan. 1 to Dec. 31 BAYERN 17.7% Share capital EUR 69.9 million H. J. SELZER
Slide 41: Agenda
AGENDA 1 MAJOR EVENTS H1 2023 2 INDUS' DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE 7 APPENDIX 41
Slide 42: INDUS in Figures – Key Figures Q2 2023
INDUS IN FIGURES KEY FIGURES Q2 2023 SALES* EBIT* EBIT MARGIN* FREE CASH FLOW* (in EUR million) (in EUR million) (in %) (in EUR million) -3.5% 469.9 453.3 -12.8% > 100 % -1.0 pp 46.0 40.1 35.2 9.8 8.8 -17.6 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 H1 2022 H1 2023 * from continuing operations
Slide 43: Revenue by Segment Q2 2023
REVENUE BY SEGMENT Q2 2023 DECREASE IN SALES IN ALL SEGMENTS ENGINEERING INFRASTRUCTURE MATERIALS -3.0% -0.7% -7.2% 154.5 165.8 164.7 149.4 138.6 149.8 Sales (in EUR million) Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 43
Slide 44: EBIT per Segment Q2 2023
EBIT PER SEGMENT Q2 2023 NOTICEABLE DECLINE IN THE SEGMENT INFRASTRUCTURE ENGINEERING INFRASTRUCTURE MATERIALS -25.4% -5.8% -2.8% 19.3 19.1 18.0 14.4 10.6 10.3 EBIT (in EUR million) Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 44
Slide 45: 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 46: INDUS Portfolio Companies – Infrastructure
INDUS PORTFOLIO COMPANIES INFRASTRUCTURE COMPANIES DESCRIPTION LOCATION Anchoring 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) A
Slide 47: INDUS Portfolio Companies – Materials
INDUS PORTFOLIO COMPANIES MATERIALS COMPANIES DESCRIPTION LOCATIONS Carbide tools for road construction and mining, tunnelling and special civil engineering, Aichhalden (DE), Charlotte (US), Taicang (CN) agriculture, etc. Innovative cold extruded parts, turned parts and screw plugs Hillesheim (DE),
Slide 48: Contact
CONTACT IR/PR Do you have any questions or want to get in touch with us? Dafne Sanac Nina Wolf Investor Relations Public Relations Phone: +49 (0) 2204-4000-32 Phone: +49 (0) 2204-4000-73 Email: investor.relations@indus.de Email: presse@indus.de 48
Slide 49: Disclaimer
INDUS HOLDING AG DISCLAIMER This presentation was prepared by INDUS Holding AG (hereafter 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. Al