Indus Holding Ag · XETR:INH
Indus — Q1 2020 Earnings Presentation
54 slides from Indus's earnings presentation, May 14, 2020
Slide 1: Presentation of the Results for the First Quarter of 2020
PRESENTATION OF THE RESULTS FOR THE FIRST QUARTER OF 2020 Bergisch Gladbach, 14 May 2020
Slide 2: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES Q1 2020 UPDATE CORONA Q1 2020 OUTLOOK AGM, SHARE & DIVIDENDS APPENDIX Nou rfwsyn = [INDUS]
Slide 3: Business Model: We Are Passionate About SMEs
INDUS BUSINESS MODEL WE ARE PASSIONATE ABOUT SMES Horn upuayes \scnwenin REMEN WE... — are the leading specialist in long-term investment ___WANovEr [BERL ; sreoactak ese *M*? —\vscotouns) sondsast and development in the German SME Sector. asuse "056, Me agten en /) : — invest in SME Hidden Champion
Slide 4: Accompanying SME Hidden Champions in the Long Term
INDUS ACCOMPANYING SME HIDDEN CHAMPIONS IN THE LONG TERM ...aS a FINANCIAL HOLDING ...as a MAJORITY ...as a BANK SHAREHOLDER ...aS a CONSULTANT COMPANY — Company acquisitions — Long-term holding perspective — Know-how — Financing tasks in shareholder — Investments in property, plant — Operational re
Slide 5: INDUS Investments Are Present in More Than 30 Countries
INDUS BUSINESS MODEL [INDUS] INDUS INVESTMENTS ARE PRESENT IN MORE THAN 30 COUNTRIES GERMANY Approx. EUR 890 millions 7,885 employees EUROPE Approx. 375 millions 1,516 employees REST OF THE WORLD Approx. 478 millions 1,455 employees Sales and employee figures and locations as at 31.12.2019, Europe =
Slide 6: Content Diversification as a Strategic Core Element
INDUS CONTENT DIVERSIFICATION AS A STRATEGIC CORE ELEMENT Construction/ Automotive Engineering Medical Engineering Metals Technology Infrastructure 11 Technology 12 portfolio and Life Science 10 portfolio portfolio companies 9 portfolio companies companies 5 portfolio companies companies
Slide 7: Sustainability as an Integral Component
INDUS BUSINESS MODEL [INDUS] SUSTAINABILITY AS AN INTEGRAL COMPONENT ‘PRIME’ STATUS IN ISS ESG RATING ISS ESG Rating — Top position in ISS ESG rating for the fifth time — INDUS received a “C+" rating in “Corporate ESG Corporate ESG Performance” and hence also ‘Prime’ status Performance — Top positio
Slide 8: Performance Promise
PERFORMANCE PROMISE [INDUS] CONTINUE TO DELIVER ON OUR PROMISES TO OUR STAKEHOLDERS 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 ENTREPRENEURS PERFORMANCE We preserv
Slide 9: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES Q1 2020 UPDATE CORONA Q1 2020 OUTLOOK AGM, SHARE & DIVIDENDS APPENDIX Naourfwnsyn = [INDUS]
Slide 10: Strategy: 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 11: Our Goals for the Next Years: Develop the Investment Portfolio
OUR GOALS FOR THE NEXT 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 fut
Slide 12: Recent Portfolio Acquisitions
TR Metalltechnik OFA acquires ROLKO acquires trading company for Ability Products medical aids Inc., USA WIESAUPLAST- PMC de México* Portfolio company acquires supplier of air-conditioning devices 12
Slide 13: M+P International Mess- und Rechnertechnik GmbH
M+P INTERNATIONAL MESS- UND RECHNERTECHNIK GMBH JANUARY 2020: INDUS ACQUIRES ADDITIONAL SHARES — m+p international produces measurement and test systems for vibration testing, vibration analysis, data acquisition, process monitoring and test stand automation. These are used in numerous key industrie
Slide 14: Our Goals: Take the Group to the Next Technology Level
OUR GOALS FOR THE NEXT 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 digitalization, operational excellence and internationalization. 2. DRIVE INNOVATI
Slide 15: Strategic Initiatives
STRATEGIC INITIATIVES [INDUS] FOCUS 2 AND 3 2. DRIVE INNOVATION 3. INCREASE PERFORMANCE Business Technology & innovation Production development! marketing/sales Conservative financial management Fields of work: Fields of work: Fields of work: Development bank Status check Financial Stability & Liqui
Slide 16: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES Q1 2020 UPDATE CORONA Q1 2020 OUTLOOK AGM, SHARE & DIVIDENDS APPENDIX Nou rfwnyn = [INDUS] 16
Slide 17: Q1 2020 at a Glance
INDUS IN FIGURES Q1 2020 AT A GLANCE EFFECTS OF THE CORONAVIRUS PANDEMIC CAN CLEARLY BE FELT — Coronavirus pandemic has strong operational impact on three of the five segments in the reporting period — Negative revenue trend of -8.3% mainly attributable to the sharp drop in the Automotive Technology
Slide 18: Cash Flow Statement January to March 2020
INDUS IN FIGURES CASH FLOW STATEMENT 1 JANUARY 2020 TO 31 MARCH 2020 163.8 36.7 —0.3 135.1 2.6 -2.6 0.1 -7.8 a-------- __ Cash outflow slightly above prior year level Investments in property, plant and equipment and intangible assets well below Q1 levels of previous years OPERATING CASH FLOW CLEARLY
Slide 19: Liquidity Secured
INDUS IN FIGURES LIQUIDITY SECURED CREATION OF A LIQUIDITY BUFFER OF APPROX. EUR 40 MILLION AT THE HOLDING COMPANY Bilateral commitment of new loan tranches by important financing partners Continued independence from individual lenders due to broadly diversified borrowings Financing mix consisting p
Slide 20: Construction/Infrastructure Q1 2020
INDUS IN FIGURES [INDUS] CONSTRUCTION/INFRASTRUCTURE Q1 2020 REVENUE AND EARNINGS GROWTH — Revenue growth of 8.0%, EBIT growth of 55% — Growth especially in the area of air conditioning units, armoring for reinforced concrete as well as sealing systems and building entries — Again disproportionate i
Slide 21: Automotive Technology Q1 2020
INDUS IN FIGURES [INDUS] AUTOMOTIVE TECHNOLOGY Q1 2020 DECLINING BUSINESS IN SEGMENT AS A WHOLE — Existing negative effects of the difficult structural environment in the automotive industry resulting from COVID-19 aggravated — especially since March 2020 — Lower call-offs at series production suppl
Slide 22: Engineering Q1 2020
INDUS IN FIGURES [INDUS] ENGINEERING Q1 2020 SLUMP IN REVENUES AND EARNINGS DUE TO CORONAVIRUS PANDEMIC Significant decline in revenues due to current market slowdown — Decline mainly due to the portfolio companies in the automation technology and machine tool industries and to the portfolio compani
Slide 23: Medical Engineering / Life Science in Q1 2020
INDUS IN FIGURES [INDUS] MEDICAL ENGINEERING / LIFE SCIENCE IN Q1 2020 UNEXPECTED NEGATIVE EFFECTS Negative revenue trend across almost all portfolio companies — Coronavirus pandemic had negative impact on most of the segment companies: > Disrupted sales channels in medical supply stores, pharmacies
Slide 24: Metals Technology in Q1 2020
INDUS IN FIGURES [INDUS] METALS TECHNOLOGY IN Q1 2020 SLIGHTLY HIGHER OPERATING RESULT — Moderate drop in revenues due to declining demand at some portfolio companies, including plastics electroplating, which will be shut down in 2020 — Lively demand in the carbide tools sector after rapid recovery
Slide 25: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES Q1 2020 UPDATE CORONA Q1 2020 OUTLOOK AGM, SHARE & DIVIDENDS APPENDIX “Na qQou fFwWN = [INDUS] 25
Slide 26: COVID-19: Effects and Measures
COVID-19 >> EFFECTS AND MEASURES [INDUS] EFFECTS AT THE PORTFOLIO COMPANIES (QUALITATIVE) Challenges (as of 30 March 2020) As of 14 May 2020 * Successful implementation of home office = Absence of employees due to quarantine as a result operations at INDUS Holding, return to of (suspected) infection
Slide 27: COVID-19: Effects and Measures (continued)
COVID-19 >> EFFECTS AND MEASURES [INDUS] ...EFFECTS AT THE PORTFOLIO COMPANIES (QUALITATIVE) Challenges (as of 30 March 2020) As of 14 May 2020 = Smooth IT operations ensured at all 3 portfolio companies = VPN capacities for mobile working expanded at = Short-term digitalization of processes = Highe
Slide 28: COVID-19: Support of the Portfolio Companies by INDUS
COVID-19 >> MEASURES [INDUS] SUPPORT OF THE PORTFOLIO COMPANIES BY INDUS Higher-level action plan (as of 14 May 2020) = Interaction and reporting with the portfolio companies significantly intensified . «Regular update calls with managing directors Administration = Detailed weekly liquidity reportin
Slide 29: Effects of COVID-19: Current Conclusion
EFFECTS OF COVID-19 CURRENT CONCLUSION Financial stability due to good equity base and proactive financial management Reduced risks due to geographically and content-wise diversified portfolio and agility of the SME structures Securing of the future viability of the portfolio companies by driving in
Slide 30: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES Q1 2020 UPDATE CORONA Q1 2020 OUTLOOK AGM, SHARE & DIVIDENDS APPENDIX Noaurwsyn = [INDUS] 30
Slide 31: Influences of the Coronavirus Crisis on the Global Economy
Significant influences of the measures to contain the coronavirus crisis on the global economy Chinese economy is rapidly returning to normality after lockdown in February — in terms of domestic demand; USA and Europe, on the other hand, still very much affected GDP decline in Germany in the first h
Slide 32: Agenda
AGENDA INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES Q1 2020 UPDATE CORONA Q1 2020 OUTLOOK AGM, SHARE & DIVIDENDS APPENDIX Nou fwsyn = [INDUS] 32
Slide 33: 2020 Annual Shareholders' Meeting
2020 ANNUAL SHAREHOLDERS’ MEETING [INDUS] ANNUAL SHAREHOLDERS MEETING AND DIVIDEND PAYOUT POSTPONED The ANNUAL SHAREHOLDERS! MEETING will be held IN AUGUST 2020. — The exact date will be announced in due course. — A virtual Annual Shareholders’ Meeting is being considered. — Asa result, the date for
Slide 34: Dividend for the Fiscal Year 2019
DIVIDEND FOR THE FISCAL YEAR 2019 REDUCED DIVIDEND PAYOUT TO ENSURE ABILITY TO ACT — The Board of Management and the Supervisory Board propose to the Annual Shareholders’ Meeting to PAY A DIVIDEND OF EUR 0.80 PER SHARE. — The Board of Management will critically monitor and assess the further develop
Slide 35: Net Profit in EUR Millions
* Net profit in EUR millions 35
Slide 36: Share and Dividend
SHARE AND DIVIDEND ANCHOR SHAREHOLDERS SUPPORT LONG-TERM COURSE OF BUSINESS WKNIISIN 620010/DE 000 620 010 8 Established/IPO 1986/1995 Fiscal year 01.01. — 31.12. Capital stock EUR 63.6 milion Number of shares 24,450,509 no-name bearer shares increase 02.12.2013 Free float approx. 72% Stock exchange
Slide 37: Thank You Very Much
THANK YOU VERY MUCH FOR YOUR ATTENTION! Starting on the left: Rudolf Weichert (Board member) Axel Meyer (Board member) Dr.-Ing. Johannes Schmidt (Chairman of the Board) @ Dr. Jorn Gro&mann (Board member) dial 37
Slide 38: Contact
CONTACT INVESTOR RELATIONS DAFNE SANAC © +49 (0) 2204-4000-32 Ba investor.relations@indus.de [INDUS] PUBLIC RELATIONS JANA KULSCHBACH Ay +49 (0) 2204-4000-35 wa presse@indus.de 38
Slide 39: Financial Calendar
FINANCIAL CALENDAR PUBLICATION DATES 2020 [INDUS] DATE EVENT VENUE 30 March 2020 Publication of the Annual Report for the 2019 fiscal year Publication 30 March 2020 Press conference on the results for the 2019 fiscal year Online 31 March 2020 Analysts' conference on the 2019 fiscal year Online 14 Ma
Slide 40: 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
Slide 41: Agenda
AGENDA Nourwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES Q1 2020 UPDATE CORONA Q1 2020 OUTLOOK AGM, SHARE & DIVIDENDS APPENDIX 7.1 DETAIL PARKOUR STRATEGY - INNOVATION 7.2. DETAIL PARKOUR STRATEGY - OPERATIONAL EXCELLENCE 7.3, PORTFOLIOCOMPANIES [INDUS] 41
Slide 42: Agenda
AGENDA Nourwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES Q1 2020 UPDATE CORONA Q1 2020 OUTLOOK AGM, SHARE & DIVIDENDS APPENDIX 7.1 DETAIL PARKOUR STRATEGY - INNOVATION 7.2. DETAIL PARKOUR STRATEGY - OPERATIONAL EXCELLENCE 7.3, PORTFOLIOCOMPANIES [INDUS] 42
Slide 43: Strategic Initiative: Development Bank Budget Doubled
STRATEGIC INITIATIVE “STRENGTHEN INNOVATIVE STRENGTH” [INDUS] DEVELOPMENT BANK - BUDGET DOUBLED . Py \ . 1.18 Objective 2019 — Tas — Strengthen innovative power 0.04 £1.91 — Establish innovation as a revenue driver ° a wedten 2017 0.02 £0.67 Hi Automotive 1 Mech. Engineering] a fons ntfs . . letals
Slide 44: Consolidation of the Innovation Toolbox
STRATEGIC INITIATIVE “STRENGTHEN INNOVATIVE STRENGTH” CONSOLIDATION OF THE INNOVATION TOOLBOX - KNOWLEDGE, NETWORK & STRATEGIC PROJECTS Strengthen innovation Technology & innovation Fields of work: (i) Development bank (ii) Knowledge (iii) Network (iv) Strategic projects “Innovation management" semi
Slide 45: Innovations in 2019
INNOVATIONS IN 2019 [INDUS] FOUR TIMES AWARDED “Top Innovator 2019 Award" REMKO convinced the expert jury of the Plus X Award, one of GISIRI the world’s largest innovation prizes for technology, sports and rae lifestyle, with its new SLE45-85 pool dehumidifier. The REMKO dehumidifier received the Be
Slide 46: Agenda
AGENDA Nourwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES Q1 2020 UPDATE CORONA Q1 2020 OUTLOOK AGM, SHARE & DIVIDENDS APPENDIX 7.1 DETAIL PARKOUR STRATEGY - INNOVATION 7.2. DETAIL PARKOUR STRATEGY - OPERATIONAL EXCELLENCE 7.3, PORTFOLIOCOMPANIES [INDUS] 46
Slide 47: The Four Pillars of INDUS Support
THE FOUR PILLARS OF INDUS SUPPORT S Status check Implementation = Identify and y Support prioritize implementation vy improvement projects potentials Project = Derive concrete management, recommendations sparring and vy for action operational Knowledge v Platform for knowledge transfer ¥ Lectures, t
Slide 48: The Six Topics of the Status Check Business Development
INDUS THE SIX TOPICS OF THE STATUS CHECK BUSINESS DEVELOPMENT INDUS commercial excellence framework Business plan & objectives Strategy Market & segmentation Positioning Product Sales organization Market approach Portfolio Pricing Structure Acquisition Communication Discounts Distribution channels C
Slide 49: Agenda
AGENDA Nourwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES Q1 2020 UPDATE CORONA Q1 2020 OUTLOOK AGM, SHARE & DIVIDENDS APPENDIX 7.1 DETAIL PARKOUR STRATEGY - INNOVATION 7.2 DETAIL PARKOUR STRATEGY ~ OPERATIONAL EXCELLENCE 7:3, PORTFOLIOCOMPANIES [INDUS] 49
Slide 50: Portfolio Companies: Construction/Infrastructure Segment
INDUS PORTFOLIO COMPANIES [INDUS] CONSTRUCTION/INFRASTRUCTURE SEGMENT COMPANIES DESCRIPTION LOCATIONS Anchoring and reinforcement technology Dielsdorf (CH), Cologne (DE), Lauchhammer (DE), Rossens (CH) Anchoring and reinforcement technology Neuss (DE), Halle (DE) Sealants made of silicone and acryli
Slide 51: Portfolio Companies: Automotive Technology Segment
INDUS PORTFOLIO COMPANIES AUTOMOTIVE TECHNOLOGY SEGMENT COMPANIES DESCRIPTION [INDUS] LOCATIONS AURORA < Heating and air-conditioning systems for vehicles Mudau (DE), Grand Rapids (US), Istanbul (TR), Nuenen (NL), Oettingen (DE), Shanghai (CN), Weert (NL) sussause? Innovative cold extrusion parts, t
Slide 52: Portfolio Companies: Engineering Segment
INDUS PORTFOLIO COMPANIES ENGINEERING SEGMENT COMPANIES DESCRIPTION [INDUS] LOCATIONS 2ASS< Robotic hands and automation systems for manufacturers Overath (DE), Plymouth (US), Worth an der Donau (DE) Specialist for logistics and material flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmal
Slide 53: Portfolio Companies: Medical Engineering/Life Science
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 Hésbach (DE), Konigswalde (DE), Lubari (PL) mikrcp Miniaturized precision optics Wittenbach (CH
Slide 54: Portfolio Companies: Metals Technology
INDUS PORTFOLIO COMPANIES [INDUS] METALS TECHNOLOGY COMPANIES DESCRIPTION LOCATIONS Steel and aluminium building modules for the rail industry Reinach (CH) Carbide tools for road construction and mining, tunnel and underground construction, farming etc. Aichhalden (DE), Charlotte (US), Taicang (CN)