Slide 1: Presentation of the results for the first nine months of 2018
Bergisch Gladbach, PRESENTATION OF THE RESULTS 14. November 201 , ; FOR THE FIRST NINE MONTHS OF 2018
Slide 2: Agenda
UU FWwWn = INDUS AT A GLANCE STRATEGIC REPORT FOR 9M 2018 FINANCIAL DEVELOPMENT IN 9M 2018 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS]
Slide 3: INDUS business model: We are passionate about SMEs
INDUS business model We are passionate about SMEs 3
Slide 4: Broad portfolio as a core strategic element
INDUS business model Broad portfolio as a core strategic element 000 000 000111 11 9 11 5 9 4
Slide 5: Long-term oriented company model
INDUS business model Long-term oriented company model Short to medium-term Long-term investments return-driven investments without exit orientation Large Caps: INDUS Holding Apax, Blackstone, KKR BUY Aalberts Mid Caps: BUY and Industries DBAG, 3i, Odewald and HOLD Gesco Small Caps: MAX Automation MB
Slide 6: Investment criteria of INDUS Holding
INDUS business model Investment criteria of INDUS Holding Broadly diversified Niche customer position Double digit base Own operating industrial profit margin added value Growth per- Equity rate spectives, >30% also interna- tionally EBIT Cash flow EUR 2-10 orientation million Sales of Low level/ EU
Slide 7: SME culture in the INDUS Group
INDUS business model SME culture in the INDUS Group Entrepreneurship Long-term character INDUS Holding AG Stability Fairness Portfolio companies Short lines Reliability INDUS invests in tried-and-tested business models with a long-term perspective. The subsidiaries develop their operations activ
Slide 8: Accompanying SME hidden champions in the long term
INDUS business model Accompanying SME hidden champions in the long term Property, plant Know-how and equipment investments Strategic sparring Development Networking Innovation Knowledge Acquisitions transfer Financing tasks in Accounting, taxation and shareholder management law at the holding level
Slide 9: Sustainability remains integral component
INDUS business model Sustainability remains integral component Second INDUS Sustainability Report Reporting in accordance with the German Sustainability Code First auditor's review INDUS obtained another “A” rating in 2017 Oekom confirmed “Prime” status in 2018 9
Slide 10: Agenda
oO FWwWn = INDUS AT A GLANCE STRATEGIC REPORT FOR 9M 2018 FINANCIAL DEVELOPMENT IN 9M 2018 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 10
Slide 11: Strategic report: Strategic growth with COMPASS 2020
Strategic report Strategic growth with COMPASS 2020 11
Slide 12: COMPASS 2020: Strategic for the first nine months of 2018
COMPASS 2020 Strategic for the first nine months of 2018 AURORA: Electronic Equipment, Weert (NL) OFA: Trading company for medical aids (DE) Acquisition of a supplier of high-quality air- conditioning devices (DE) by another portfolio company Increased drawdown of development bank’s offer Currently
Slide 13: COMPASS 2020 – Investment: Strengthening of portfolio
COMPASS 2020 – Investment Strengthening of portfolio Strengthening of portfolio Growth acquisitions TR Metalltechnik OFA acquires trading company for WIESAUPLAST- medical aids PMC de México* Portfolio company acquires supplier of air-conditioning devices * Acquisition of the remaining shares (55%).
Slide 14: COMPASS 2020 – Investments: Strategic acquisitions 2018
COMPASS 2020 – Investments Strategic acquisitions 2018 acquires acquires the electronics specialist activities of a southern acquires a renowned as a strategic addition German trading supplier of high-quality company for medical air-conditioning devices Customized aids as a strategic electronic cont
Slide 15: COMPASS 2020 – Innovation
COMPASS 2020 – Innovation Focus remains on innovation 15
Slide 16: COMPASS 2020 – Innovation
COMPASS 2020 – Innovation Innovation development bank new Technology existing existing new Markets * As at 11/2018. 16
Slide 17: COMPASS 2020 – Internationalization
COMPASS 2020 – Internationalization Strengthening the portfolio through internationalization 17
Slide 18: Portfolio companies have a presence in 30 countries
COMPASS 2020 – Internationalization Portfolio companies meanwhile have a presence in 30 countries 815.5 m 7,487 376.4 m 1,411 448.7 m 1,312 * Sales and employee figures as at 12/2017, locations as at 11/2018, Europe = EU and Switzerland. 18
Slide 19: New strategic element: Operational Excellence initiative
COMPASS 2020 – New strategic element “Operational Excellence” initiative 19
Slide 20: Agenda
oO FWwWn = INDUS AT A GLANCE STRATEGIC REPORT FOR 9M 2018 FINANCIAL DEVELOPMENT IN 9M 2018 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 20
Slide 21: INDUS in figures: A look back at 9M 2018
INDUS in figures A look back at 9M 2018 Portfolio companies achieve further revenue growth of 4.4% (thereof 3.1% organic growth). Moderate increase in earnings in 9M 2018, lower EBIT margin due to increased material and personnel expenses; adverse starting position in Automotive Technology segment;
Slide 22: 9M 2018 at a glance
INDUS in figures 9M 2018 at a glance Sales 1,274.9 1,221.1 4.4 Operating cashflow 14.8 56.1 -73.6 EBITDA 166.4 161.0 3.4 Cash flow from operating activity 0.8 41.3 -98.1 EBIT 116.1 114.5 1.4 Cash flow from investing activity -58.6 -75.4 22.3 EBIT margin (in %) 9.1 9.4 -0.3 pp Cash flow from financin
Slide 23: Income statement 01.01.2018 – 30.09.2018
INDUS in figures Income statement from 01.01.2018 – 30.09.2018 Revenues Revenues growing growingagain (3.1% again organic) EBIT margin: 9.1% Improved net Adjusted EBIT margin: 9.7% interest income Tax rate incl. repositionings, one-time primarily due to almost expenses, increased cost of acquisition
Slide 24: Reconciliation to adjusted operating result 9M 2018
INDUS in figures Reconciliation to adjusted operating result 9M 2018 (in EUR milions) 116.1 123.9 * Depreciation/Amortization from fair value adjustments relate to identified assets at fair value in connection with acquisitions made by the INDUS Group. ** Impacts of fair value adjustments in invento
Slide 25: Consolidated statement of cash flows
INDUS in figures Consolidated statement of cash flows 01.01.2018 – 30.09.2018 14.8 -14.0 135.9 0.8 -58.6 29.4 0.1 107.5 Cash outflow at the prior year level Strong increase in working 9M 2018 incl. investments capital due to expanded in property, plant and Incl. repayment business activity, increase
Slide 26: Segments: Overview 9M 2018
INDUS in figures Segments: Overview 9M 2018 Sales with external third parties 271.4 294.8 274.9 115.4 318.6 EBITDA 47.8 22.7 42.1 18.1 39.0 Depr./Amortization -7.4 -17.3 -8.9 -5.5 -10.5 EBIT 40.4 5.4 33.2 12.6 28.5 EBIT margin (in %) 14.9 1.8 12.1 10.9 8.9 Capital expenditure 18.8 16.9 6.9 5.5 11.0
Slide 27: Construction/Infrastructure 9M 2018
INDUS in figures Construction/Infrastructure 9M 2018 Renewed increase in revenues and earnings, EBIT margin stays at high level Supply network infrastructure is a strong area Portfolio companies performing close to capacity limits Shortage of raw materials and skilled labor, incl. rising raw materia
Slide 28: Automotive Technology 9M 2018
INDUS in figures Automotive Technology 9M 2018 Increase in revenues attributable to heating and air-conditioning systems for utility vehicles, to first-time consolidation of Electronic Equipment (for AURORA) and to good business performance of an engineering company Declining revenues of series prod
Slide 29: Engineering 9M 2018
INDUS in figures Engineering 9M 2018 Revenues pick up due to logistic operations and to new acquisitions of the previous year (M+P and PEISELER, fully consolidated for first time in 9M 2018) Order situation at two portfolio companies in large-scale plant construction segment back to normal; addition
Slide 30: Medical Engineering/Life Science 9M 2018
INDUS in figures Medical Engineering/Life Science 9M 2018 Moderate decline in revenues; EBIT margin in Q3 2018 slightly higher again (9M 2018 at 10.9%) Product area of nonwoven applications and surgical sets adversely affected by unexpected loss of customers in H1 2018 and intense competition; expec
Slide 31: Metals Technology 9M 2018
INDUS in figures Metals Technology 9M 2018 Again good revenue growth; increase primarily in carbide tools area EBIT clearly above previous year, but EBIT margin in Q3 2018 adversely affected by increased materials prices at a large portfolio company Repositioning exercise of a portfolio company is p
Slide 32: Outlook 2018: German economy and world economy
Outlook 2018 German economy and world economy Good sentiment in German labor market leads to high capacity utilization but also to shortage of skilled labor and rising materials, energy and wage costs. Recent slowdown in incoming orders in the German manufacturing sector suggests that growth has pas
Slide 33: Outlook 2018: INDUS sectors
Outlook 2018 INDUS sectors Economic environment remains very good; shortage of resources and skilled labor lead to limited capacity and rising commodity and labor costs; construction and security technology is the industry of the future for INDUS. Declining sales and releases at automotive manufactu
Slide 34: Outlook 2018: INDUS Group
Outlook 2018 INDUS Group COMPASS 2020 strategy to be continued in 2018. Continued sharpening of strategic priorities such as innovation and digitization, new “Operational Excellence” initiative. Continuation of the investment drive (EUR 88 million planned for property, plant and equipment and intang
Slide 35: Outlook 2018: Guidance for the Group confirmed
Outlook 2018 Guidance for the Group confirmed Sales EUR 1,640.6 million EUR 1.65 - 1.70 billion EBIT EUR 152.9 million EUR 154 - 160 million Acquisitions 2 growth 2 growth acquisitions acquisitions Investments in property, plant, EUR 79.0 million EUR 88 million and equipment and intangible assets Eq
Slide 36: Agenda
Uo FWwWn = INDUS AT A GLANCE STRATEGIC REPORT FOR 9M 2018 FINANCIAL DEVELOPMENT IN 9M 2018 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 36
Slide 37: Share and dividend: Reliable participation in success
Share and dividend Reliable participation in success Dividend of EUR 1.50 per share paid for FY 2017 (EUR 1.35 in previous year). INDUS Holding AG’s profit distribution thus totals EUR 36.7 million, which is equivalent to 43.9% of the distributable profit (42.7% in previous year). The remaining was
Slide 38: Share and dividend: Very stable shareholder base
Share and dividend Very stable shareholder base WKN/ISIN 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 Last capital increase 02.12.2013 Free float approx. 72% XETRA, Düsseldorf, Frankfurt
Slide 39: Analysts' estimates and target prices
Share and dividend Analysts‘ estimates and target prices INDUS share currently covered by seven banks and investment firms. Most recently, Equinet Bank started equity research on INDUS again in August 2017. The average target price currently stands at EUR 68.50.
Slide 40: Share performance
Share and dividend Share performance 250 15 10 200 5 150 0 -5 100 -10 50 -15 0 -20 -25 -50 31.12.17 31.03.18 30.06.18 30.09.18 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 INDUS Holding AG DAX Index SDAX Performance Index INDUS Holding AG DAX Index SDAX
Slide 41: Agenda
wm FWwWn INDUS AT A GLANCE STRATEGIC REPORT FOR 9M 2018 FINANCIAL DEVELOPMENT IN 9M 2018 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 41
Slide 42: Financial calendar
Financial calendar Publication and capital market dates 14 November 2018 Interim Report on 9M/Q3 2018 Publication 27 November 2018 German Equity Forum Frankfurt/Main 29 November 2018 Extraordinary Shareholders' Meeting Cologne 4 December 2018 PRIOR Capital Market Conference Dreieich-Götzenhain 11 De
Slide 43: INDUS in figures: Performance in the past five years
INDUS in figures Performance in the past five years 180 20.0% 1,640.6 160 152.9 18.0% 1,444.3 144.9 1,388.9 136.3 16.0% 1,255.7 140 127.2 1,186.8 118.6 14.0% 120 12.0% 100 10.0% 80 10.0% 10.1% 9.8% 10.0% 9.3% 8.0% 60 6.0% 40 4.0% 20 2.0% 0 0.0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 129.2
Slide 44: Performance of the segments in the past five years
INDUS in figures Performance of the segments in the past five years 44