Indus Holding Ag · XETR:INH
Indus — Q1 2025 Earnings Presentation
48 slides from Indus's earnings presentation, May 14, 2025
Slide 1: Bergisch Gladbach, 14 May 2025
Bergisch Gladbach, 14 May 2025 1
Slide 2: Agenda
Agenda 01 Key Takeaways 02 INDUS Purpose 03 Growth Strategy 04 Business and Financial Performance Q1 2025 05 Performance of Business Segments 06 Appendix
Slide 3: Key Takeaways
01 Key Takeaways
Slide 4: Trade conflicts increase general uncertainty
Trade conflicts increase general uncertainty Highlights INDUS Group Q1 2025 Three add-on acquisitions in Q1 25 Solid order intake driven by segment Engineering Revenue (EUR 402.4 million) and adjusted EBITA (EUR 24.9 million) down on previous year due to economic conditions Aperiodic tax inc
Slide 5: INDUS Purpose
02 ™ INDUS Purpose
Slide 6: Our Purpose
Our Purpose At INDUS we know how to grow the power of Mittelstand. We believe in entrepreneurs and lead our investments successfully, values-based and reliably. We love engineering and only invest in companies with excellent products, processes and services. We trust our people to contribute
Slide 7: Mittelstand
Mittelstand At INDUS we know how to grow the power of Mittelstand. Building on 40 years of experience in succession solutions for familiy owned businesses Focusing on industrial companies that deliver above average returns Investing in a diversified portfolio for greater resilience Specialis
Slide 8: Entrepreneurs
Entrepreneurs We believe in entrepreneurs and lead our investments successfully, values-based and reliable. Seeking entrepreneurs to lead our portfolio companies Creating the freedom for entrepreneurial leaders to develop their businesses successfully Encouraging … courage, creativity, trust
Slide 9: Engineering
Engineering We love engineering and only invest in companies with excellent products, processes and services. Focusing on specialised industrial technologies in attractive market niches Supporting portfolio companies to drive innovation in products, processes and services Providing support to
Slide 10: Sustained Growth
Sustained Growth As international investors we generate sustained growth and offer a long term, above average value-perspective for our shareholders. Working closely with our portfolio companies to drive their growth Supporting our portfolio companies to expand internationally Providing contin
Slide 11: Growth Strategy
03 ™ Growth Strategy
Slide 12: Our strategy comprises three growth drivers
Our strategy comprises three growth drivers EMPOWERING EMPOWERING EMPOWERING INTERNATIONALIZATION M&A TECHNOLOGY Expanding our M&A scope Investing around Formation of technology internationally EUR 500 million fields to leverage in acquisitions until 2030 growth opportunities Driving AI and Digitiza
Slide 13: International growth to enhance our resilience
International growth to enhance our resilience Empowering Internationalization Expanding M&A scope to Europe for growth acquisitions at portfolio level Expanding M&A scope globally INDUS HOLDING AG for add-on acquisitions. Promoting international growth of our existing portfolio Core market co
Slide 14: M&A program with investments of around EUR 500 million
M&A program with investments of around EUR 500 million Empowering M&A Increasing investments y-o-y from around EUR 50 million in 2025 to over EUR 100 million by 2030 M&A Budget (2025-2030) Growth acquisitions (portfolio level) EUR 500 million focused on larger targets each acquisition to con
Slide 15: Huge market potential for succession in Europe
Huge market potential for succession in Europe Midcap market opportunities Huge potential for succession solutions 90% (lack of internal successors) of family businesses see an external Industry challenges for SMEs investor as a succession option (labor shortages & geopolitical risks, investment
Slide 16: Huge market potential for succession in Germany
Huge market potential for succession in Germany KfW Research Study on Mittelstand in Germany until 231,000 business owners are looking for succession 2028 per year or checking closure until 2025. By 2028, approximately 106,000 business owners approx. 106,000 will search for a successor each year
Slide 17: Growing businesses with unique engineering capabilities
Growing businesses with unique engineering capabilities Empowering Technology – segment management Active portfolio management with regular review of ENGINEERING the segment portfolio, including identification of potential candidates for sale Axel Meyer Establishing and expanding technology fiel
Slide 18: Huge market potential in promising technology fields
Huge market potential in promising technology fields (McKinsey Study 2024) Global market volume 2035 relevant for INDUS Advanced New energies Internet of Things New battery technology Robotics materials Decarbonization E-Mobility Compatibility* technologies Biotechnology Nanosatellites Modular const
Slide 19: Implementing AI use cases
Implementing AI use cases Empowering Technology Initiative to promote the use of Artificial Intelligence by portfolio companies Identification and implementation of use cases supported by INDUS innovation development bank Increasing efficiency Process optimization Simplifying product portfolio Ana
Slide 20: Expertise to support innovation and performance improvement
Expertise to support innovation and performance improvement Empowering Technology – experts at INDUS Status check: Systematic recording of the current status and identification of improvements Knowledge: Training programmes, e.g. lean management Networks: Establishment of networks between portfolio
Slide 21: Business and Financial Performance Q1 2025
Business and Financial Performance Q1 2025 21
Slide 22: Growing incoming orders in difficult markets
Growing incoming orders in difficult markets Incoming orders Order backlog (EUR million) (EUR million) +2.6% +4.4% • In Q1 2025, order intake of EUR 455.1 million, 443.3 455.1 636.6 664.5 up 2.6% on previous year’s figure (EUR 443.3 million) • As of March 31, 2025, order backlog at EUR 664.5 million
Slide 23: Performance influenced by difficult economic environment
Performance influenced by difficult economic environment Overview Sales Adj. EBITA (EUR million) EBIT (EUR million) (EUR million) Adj. EBITA margin (%) EBIT margin (%) -1.9% 410.1 402.4 7.7% 6.5% 6.2% 4.8% -21.0% -26.7% 31.5 24.9 26.6 19.6 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 The term adj
Slide 24: Good development in Infrastructure
Good development in Infrastructure Group Sales by segment Q1 2025 Engineering Infrastructure Materials Solutions (EUR million) (EUR million) (EUR million) -4.1% +3.4% -4.8% 148.6 142.5 131.9 136.4 129.4 123.2 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 24
Slide 25: Improved adj. EBITA in Materials Solutions
Improved adj. EBITA in Materials Solutions Adj. EBITA and adj. EBITA margin per Q1 2025 Engineering Infrastructure Materials Solutions (EUR million) (EUR million) (EUR million) -21.9% +2.4% (-2.8) (+0.3) -37.3% (-3.8) 12.8 12.4 12.7 10.2 10.0 8.9% 8.3% 9.7% 7.9% 6.4 7.3% 5.2% Q1 2024 Q1 2025 Q1 2024
Slide 26: Higher investments in existing portfolio and M&A
Higher investments in existing portfolio and M&A Working Capital Investments (EUR million) (EUR million) +6.2% • Working Capital increased by 6.2%, in line with expectations 500.0 • Investments in property, plant and 470.7 equipment and intangible assets at EUR 9.7 million 20.9 (previous year: EUR 6
Slide 27: Free cash flow development as expected in Q1
Free cash flow development as expected in Q1 Working Capital dynamics of Q1 25 affecting free cash flow development (EUR million) • In Q1 2025, free cash flow for the INDUS Group at Q1 2025 Q1 2024 EUR -23.6 million Operating cash flow -15.1 12.1 (previous year: EUR 6.1 million) • Cash outflow from
Slide 28: Solid balance sheet for future growth
Solid balance sheet for future growth Free cash flow, net debt and equity ratio Free Cash Flow Net debt Equity ratio (EUR million) (EUR million) (%) +9.1% +0.1 pp 590.7 38.7 38.8 541.4 < -100% 6.1 -23.6 Q1 2024 Q1 2025 31.12.2024 31.03.2025 31.12.2024 31.03.2025 28
Slide 29: Performance of Business Segments
Performance of Business Segments 29
Slide 30: Industry trend Engineering
Industry trend Engineering • Engineering faces ongoing challenges in 2025. VDMA forecasts a 2% production decline, following a 7.2% drop in 2024, due to persistent order shortages and global uncertainties. • Sector performance mixed: thermal process technology and textile care show growth, while rob
Slide 31: Strong increase in incoming orders
Strong increase in incoming orders Engineering segment – order development Incoming orders Order backlog (EUR million) (EUR million) +19.4% +7.8% • In Q1 2025, incoming orders at EUR 171.2 million after EUR 143.3 million 171.2 378.2 350.7 in the previous year 143.3 • As of 31 March 2025, order backl
Slide 32: Slow start into 2025
Slow start into 2025 Engineering segment – sales and earnings Sales Adj. EBITA (EUR million) EBIT (EUR million) (EUR million) Adj. EBITA margin (%) EBIT margin (%) -4.8% 129.4 123.2 7.9% 5.6% 5.2% 10.2 2.6% 6.4 7.3 3.2 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 PPA depreciation 32
Slide 33: Industry trend Infrastructure
Industry trend Infrastructure Current Industry trend • Germany's construction sector remains under pressure in early 2025, though signs of stabilization are emerging. • HCOB Construction PMI fell to 40.3 in March, indicating continued contraction. The HDB forecasts a 1.4% revenue decline for 2025, a
Slide 34: Stable order backlog
Stable order backlog Infrastructure segment – order development Incoming orders Order backlog (EUR million) (EUR million) -7.8% • In Q1 2025, incoming orders -0.7% at EUR 137.8 million after EUR 149.5 million in 149.5 165.7 164.6 137.8 the previous year • As of 31 March 2025, order backlog of EUR 16
Slide 35: Acquisition of Kettler and Electro Trading in the first quarter
Acquisition of Kettler and Electro Trading in the first quarter Infrastructure segment – sales and earnings Sales Adj. EBITA (EUR million) EBIT (EUR million) (EUR million) Adj. EBITA margin (%) EBIT margin (%) +3.3% 136.4 132.0 9.7% 8.6% 7.3% 6.2% 12.8 11.4 10.0 8.4 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q
Slide 36: Industry trend Materials Solutions
Industry trend Materials Solutions Current Industry trend • Gesamtmetall remains cautious for 2025 as weak investment and export demand continue to pressure the M+E industry. The ifo business climate index has edged up, but conditions remain recessionary. Exports and production show early signs of r
Slide 37: Order backlog increased
Order backlog increased Materials Solutions segment – order development Incoming orders Order backlog (EUR million) (EUR million) -2.9% +1.2% • In Q1 2025, incoming orders at EUR 146.2 million after 150.6 146.2 120.2 121.7 EUR 150.6 million in the previous year • As of 31 March 2025, order backlog o
Slide 38: Increasing adj. EBITA and adj. EBITA margin
Increasing adj. EBITA and adj. EBITA margin Materials Solutions segment – sales and earnings Sales Adj. EBITA (EUR million) EBIT (EUR million) (EUR million) Adj. EBITA margin (%) EBIT margin (%) -4.1% 148.6 8.9% 8.6% 142.5 8.3% 7.9% 12.4 12.7 11.8 12.2 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025
Slide 39: Economic Outlook – April 2025
Economic Outlook – April 2025 No growth for Germany expected in 2025 • The global economy continues its positive but slowing trajectory. GDP Growth Forecast for 2025 While the U.S. and China show slight gains, growth in Europe remains subdued. • Global Economy +2.8% • Germany exhibits signs of stabi
Slide 40: Updated Outlook 2025 for the segments
Updated Outlook 2025 for the segments Reductions in Materials and increase of Sales guidance in Infrastracture Segment Engineering Infrastructure Materials 2024 Guidance 2025 2024 Guidance 2025 2024 Guidance 2025 Sales 596.7 Slightly increasing 559.5 Moderatly increasing 564.8 Moderatly decreasing (
Slide 41: New Outlook 2025 for the Group
New Outlook 2025 for the Group Group 2024 Guidance 2025 Sales 1.72 1.70 to 1.85 < NEW > (EUR bn) Adj. EBITA 153.7 130 to 165 < NEW > (EUR million) Adj. EBITA margin 8.9 7.5 to 9.0 < NEW > (%) Free Cashflow 135.4 > 90 (EUR million) 41
Slide 42: Anchor shareholders support the company's long-term course
Anchor shareholders support the company's long-term course Current shareholder structure Sharholder Structure as at 11 March 2025 (%) WKN/ISIN 620010/EN 000 620 010 8 Foundation/IPO 1986/1995 3.10 2.8 3.12 Financial year 1 Jan. to 31 Dec. 3.5 3.8 Share capital EUR 69.9 million 5.6 Number of shares 2
Slide 43: Appendix
INDUS Appendix
Slide 44: Engineering
Engineering At a glance Technology Fields 17 Companies in the Segment in the Engineering Segment • Automation & Assembly Technology • Conveyor Technology • Flow Technology • Machine & Equipment Technology • Measuring & Surveillance Technology • Process Technology 48
Slide 45: Infrastructure
Infrastructure At a glance Technology Fields 14 Companies in the segment in the Infrastructure Segment • Cable and Building Entries & Infrastructure • Mobile HVAC Systems • Civil Engineering & Concrete • Building Components • Air Conditioning & Ventilation Technology • Construction Chemistry 49
Slide 46: Materials Solutions
Materials Solutions At a glance Technology Fields 13 Companies in the Segment in the Materials Solutions Segment • Carbide Tools & Wear-Resistant Solutions • Components & Assembly Solutions • Surface & Enclosure Solutions • Medical & Rehabilitation Solutions • New Materials & Process Technologies 50
Slide 47: Contact
Contact Contact Name: Dafne Sanac Department: Investor Relations Phone: +49 (0) 2204/40 00-32 Email: investor.relations@indus.de 51
Slide 48: 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