3u Holding Ag · XETR:UUU
3u — Investor Presentation (July 2019)
42 slides from 3u's investor presentation, July 2019
Slide 1: 3U HOLDING AG Success in megatrends
3U HOLDING AG Success in megatrends Marburg, July 2019
Slide 2: Contents
CONTENTS Events and results Q1/2019 5 Forecast 2019, 3U HOLDING investment case 8 Group strategy and growth drivers 10 Success in megatrends – cloud computing 14 Option: IPO of weclapp 22 Success in megatrends – e-commerce 28 Success in megatrends – renewable energies 30 Summary 36 Annex 38
Slide 3: Successful start to the 2019 financial year
SUCCESSFUL START TO THE 2019 FINANCIAL YEAR 3U achieves significant revenue and earnings growth in Q1/2019 ➢ Growth drivers cloud computing and online trading ➢ Renewable energies benefit from favourable weather conditions ➢ EBITDA increases in all three segments ➢ Debt further reduced, equity ratio
Slide 4: Significant growth in the first quarter
SIGNIFICANT GROWTH IN THE FIRST QUARTER *) in EUR mn +20.3% • Growth drivers cloud computing and online trading • Renewable energies benefit from 13.1 favourable weather conditions 10.9 2018/Q1 2019/Q1 Revenue *) +41.3% +37.4% 2.1 0.5 1.4 0.4 2018/Q1 2019/Q1 2018/Q1 2019/Q1 EBITDA *) Net income *) 4
Slide 5: In Q1/2019: strong performance in all three segments
IN Q1/2019: STRONG PERFORMANCE IN ALL THREE SEGMENTS Revenue and EBITDA in EUR mn 0,5;3.7 3,7 -7.0 % 3.4 Revenue • ITC: Voice retail declining as expected, Cloud Computing grows by 50% to EUR 1.0 mn with high profit • Renewable energies: High margins, benefits from favourable weather conditions in Q
Slide 6: 3U Group: forecast confirmed, sustainably profitable growth ahead
3U GROUP: FORECAST CONFIRMED SUSTAINABLY PROFITABLE GROWTH AHEAD *) in EUR mn: 2016 – 2019 (e) Revenue *) EBITDA margin 56,00 20% 13% – 17% 51 - 55 52,00 15% 14.2% 14.0% 48.00 10.7% 48,00 46.90 10% 43.70 44,00 5% 40,00 0% 2016 2017 2018 2019 (e) 2016 2017 2018 2019 (e) 10,0 EBITDA *) 2,5 Net income
Slide 7: Investment case 3U HOLDING
INVESTMENT CASE 3U HOLDING 3U growth strategy: enhance technologies, overcome barriers to growth, tap potential ✓ Successful business models in three megatrends: ➢ Cloud computing ➢ E-commerce ➢ Renewable energies ✓ Goal: market leadership in key business areas ✓ Profitable business models in all th
Slide 8: Successful business in three megatrends
SUCCESSFUL BUSINES IN THREE MEGATRENDS ITC segment RE segment SHAC segment Information and Renewable Sanitary, heating, air telecommunication technology energies conditioning Cloud computing - Project - E-commerce ERP for SME development - Production Telecommunications - Project acquisitions and - L
Slide 9: Research focus artificial intelligence: innovation driver
RESEARCH FOCUS ARTIFICIAL INTELLIGENCE: INNOVATION DRIVER – LINK BETWEEN BUSINESSES Efficient goods and warehouse management B2B PELIA B2C Trading algorithms ITC weclapp Optimisation of online marketing Selfio SHAC DCS ClimaLevel Added value + Unique selling AI propositions Optimum use + of data + R
Slide 10: Group strategy
GROUP STRATEGY ➢ ITC strategy: • Increasing focus on cloud computing at weclapp • Dynamic progress via organic and non-organic growth • Sustainable profitability in shrinking voice communication ➢ Renewable energy strategy: • Successful project management and RE power plant proprietor (focus on onsh
Slide 11: Key growth drivers: e-commerce and cloud computing
KEY GROWTH DRIVERS: E-COMMERCE AND CLOUD-COMPUTING Revenue in kEUR CAGR: 40 % ~ 20,000 17,424 15.689 12.872 11.679 9.476 5.998 4.029 1.513 2011 2012 2013 2014 2015 2016 2017 2018 2019 (e) CAGR: 120 % ~ 4,500 3,032 1.907 1.030 546 339 59 2013 2014 2015 2016 2017 2018 2019 (e) Organic growth continues
Slide 12: weclapp
weclapp On its way to becoming an international leader in cloud-based ERP solutions 12
Slide 13: ERP systems: evolutionary steps
ERP-SYSTEMS: EVOLUTIONARY STEPS Highly advanced, flexible and scalable, ubiquitous working. Affordable for SMEs, 100 % Large corporations with mainframe More affordable server- and cloud-based and hence precursor of artificial computers desktop-based IT systems intelligence integration (machine lear
Slide 14: weclapp: one app to run your business
WECLAPP: ONE APP TO RUN YOUR BUSINESS weclapp: cloud-based ERP system – rich in functionalities for the entire enterprise 14
Slide 15: weclapp: one app to run your business
WECLAPP: ONE APP TO RUN YOUR BUSINESS • For three years in a row (2016–2018), weclapp was awarded the “cloud- based ERP system of the year” trophy • Again in 2018, weclapp was honoured for: • Customer communication • Specific customer benefit • Technology & scope of integration • And, newly, its fut
Slide 16: weclapp: serving growth markets
WECLAPP: SERVING GROWTH MARKETS Market potential Cloud software spending Number of SMB (2015, 18 % CAGR) • Cloud computing as a Worldwide megatrend: growth of 25% 200+ million $ 27.9 bn p.a. in Germany • Above-average potential at small and medium-sized companies • Trend from on-premises Europe solu
Slide 17: weclapp: performing successfully
WECLAPP: … PERFORMING SUCCESSFULLY! • Sales growth of over 100% p.a. in the past 3 years Marburg • Now more than 2,500 corporate customers Frankfurt Kitzingen and more than 10,000 users per day in 35 Würzburg countries, with a focus on Germany Mumbai 2.500 2.000 total net customers ➢ Medium and long
Slide 18: Goals and growth drivers
GOALS Market leadership International expansion IPO GROWTH DRIVERS CONTINUOUS IMPROVEMENT Ensure profitability, invest in the future Increase pace and developer capacity (internal and external) 18
Slide 19: weclapp on its way to market leadership
WECLAPP ON ITS WAY TO MARKET LEADERSHIP ✓ Innovative, fast-growing, cloud-based SaaS enterprise on its way to technology and market leadership ✓ Sophisticated, operational, multi-award-winning ERP suite for SMEs, successfully on the market since the start of 2013 ✓ > 2,500 satisfied business custome
Slide 20: Option: IPO of weclapp
3U #- HOLDING Option: IPO of weclapp 20
Slide 21: weclapp: the success story continues
WECLAPP: … THE SUCCESS STORY CONTINUES! Medium and long-term strategy • Accelerated growth, partly by means of increasing focus on bigger customers • Internationalisation of the online marketing strategy, gradual expansion of the online marketing strategy that we have applied very successfully so fa
Slide 22: weclapp M&A growth from 2019 to 2023
WECLAPP M&A GROWTH FROM 2019 TO 2023 INVESTMENT CRITERIA FOR CLOUD COMPUTING Investment criteria for cloud computing • ERP on-premises software • “Functional fit” as high as possible • Degree of standardisation as high as possible (customisation for each customer as low as possible) • Number of cust
Slide 23: Financing option: IPO
FINANCING OPTION: IPO weclapp potential: ambitious P&L goals for 2019–2023 Assumptions: We continue the success story so far: - Average sales growth CAGR for 2019–2023: approx. 50% - Average customer growth CAGR for 2019–2023: approx. 40% - EBITDA margin: up to 30 % weclapp planning 2019 2020 2021 2
Slide 24: Growth with support from the capital market
GROWTH WITH SUPPORT FROM THE CAPITAL MARKET Option: IPO of weclapp SE in 2020 • In view of weclapp’s excellent international growth prospects, with significant investments required • in internationally effective online and offline marketing • in establishing and expanding internationally positioned
Slide 25: Capital market strategy as part of growth strategy 2019–2021
CAPITAL MARKET STRATEGY AS PART OF OUR GROWTH STRATEGY FOR 2019–2021 Transaction Poss. Poss. Poss. Poss. 3U CI weclapp Poss. Selfio Selfio pre-IPO CI weclapp pre-IPO CI IPO IPO Corporate actions & project management Project management Research Documentation Research Documentation Communication Sales
Slide 26: Selfio: successful in online trading
Selfio: Successful in online trading thanks to high quality of advice and sales 26
Slide 27: Selfio: facts and figures
SELFIO: FACTS AND FIGURES • Founded in 2011, Selfio is an online trader (www.selfio.de) of professional DIY products, including well-known brands such as Buderus, Wilo, Grundfos, Biral, Junkers, Viessmann and Wolf. • Approx. 200,000 customers, currently with approx. 6,000 new customers each month •
Slide 28: Selfio: product portfolio in 2011 and today
SELFIO: PRODUCT PORTFOLIO IN 2011 AND TODAY Adapting to the market and customers entails diversification of risks in the product portfolio Breakdown of sales in 2011 in % Breakdown of sales in 2018 in % Tools Building Insulation 1.6 % materials Underfloor heating 1.5 % 1.1 % 30.1 % Water treatment 2
Slide 29: Selfio: future market of online trading
SELFIO: FUTURE MARKET OF ONLINE TRADING ➢ Strategy: • Expansion of 3U’s online trading activities into a leading, profitable trading platform for sanitary, heating and air conditioning technology (SHAC) by means of internal and external growth • Improvement in profitability Online sales in Germany*
Slide 30: Selfio: investment story
SELFIO: INVESTMENT STORY Sales per month: growth from 2011 to present 2.500 T€ 2.000 T€ Category of construction & DIY (without branch network) 1.500 T€ 1.000 T€ 500 T€ 0 T€ 2011 2012 2013 2014 2015 2016 2017 2018 2019 ✓ Dynamic sales growth from kEUR 80 per month in 2011 to around kEUR 1,750 in 201
Slide 31: Goals and growth drivers
Gain market share GOALS Top 100 Online Vendors International expansion Profitability GROWTH DRIVERS CONTINUOUS IMPROVEMENT Logistics optimisation and enhancement Optimisation data usage/algorithms/software 31
Slide 32: SHAC segment: further measures for success
SHAC SEGMENT: 3U’S ONLINE TRADING FURTHER MEASURES FOR SUCCESS Organic growth in 3U’s online trading • Medium and long-term increase in storage space from approx. 4,000 m2 to 7,500 m2 by establishing a new warehouse and logistics centre • Optimisation, particularly of key processes for supply chain
Slide 33: Renewable energy: wind and solar power
Renewable energy: Wind and solar power 33
Slide 34: Strategic development in the renewable energy segment
STRATEGIC DEVELOPMENT IN THE RENEWABLE ENERGY SEGMENT ➢ Strategy: Successful project manager in the field of renewable energy • Cash flow is generated from income from power generation • Primarily onshore wind power projects • 3U Group as buyer and seller of already constructed wind farms • Non-orga
Slide 35: Summary
3U #- HOLDING Summary 35
Slide 36: Summary: the future of our company
SUMMARY: THE FUTURE OF OUR COMPANY GROWTH – PROFITABILITY – VALUE CREATION • 2018 was a successful year, and 2019 will be considerably better. • We see strong potential for further sales growth and increased earnings in 2019 and the following years. • We create value • thanks to the rapid growth sto
Slide 37: Annex
3U #- HOLDING 37
Slide 38: 3U Group: good balance sheet quality and sound cash flow
3U GROUP: GOOD BALANCE SHEET QUALITY AND SOUND CASH FLOW in EUR million 31 March 2019 31 Dec. 2018 Total assets 77.9 74.5 Inventories 7.5 7.0 Cash and cash equivalents 12.4 12.3 Equity 43.0 42.4 Equity ratio 53.8% 55.6% Gearing (debt/equity) 85.7% 79.7% Free cash flow 1.2 (3 months) 8.7 (full year)
Slide 39: 3U at a glance
3U AT A GLANCE 3U 3U a@- HOLDING HOLDING AG Marburg, Deutschland, Vorstand: C. Hellrung, A. Odenbrelt, M. Schmidt La 0°0" 010017 Telecom GmbH Marburg, Deutschland 30 TELECOM A, 3U TELECOM GmbH. Marburg, Deutschland 3U TELECOM 2 3U TELECOM GmbH Wien, Osterreich Discount Telecom S&V GmbH Marburg, Deut
Slide 40: Dividend, share price and shareholder structure
DIVIDEND, SHARE PRICE AND SHAREHOLDER STRUCTURE Share price performance (12 months) Shareholder structure 6.2 % 30.1 % 63.7% Free float Management and Supervisory Board Treasury shares Information on the share Market segment Prime Standard Dividend policy: • Roughly half of the consolidated net prof
Slide 41: Financial calendar & contact
FINANCIAL CALENDAR & CONTACT Date Event 14 August 2019 Publication of 2019 half-year financial report 2–3 September 2019 Participation in Fall Conference (Frankfurt) Participation in Baader Investment Conference 27 September 2019 (Munich) 7 November 2019 Publication of quarterly communication on Q3
Slide 42: Disclaimer
Disclaimer The information in this presentation does not constitute an offer to sell or an invitation to submit an offer to purchase or subscribe for shares of 3U HOLDING AG but rather is intended exclusively for information purposes. German legal framework The information contained in this presenta