Indus Holding Ag · XETR:INH
Indus — Q1 2023 Earnings Presentation
44 slides from Indus's earnings presentation, May 11, 2023
Slide 1: Presentation of Income for Q1 2023
PRESENTATION OF INCOME FOR Q1 2023 BERGISCH GLADBACH, MAY 11, 2023
Slide 2: Agenda
AGENDA 1 MAJOR EVENTS – Q1 2023 2 INDUS’ DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES – Q1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 2
Slide 3: Material Developments – Q1 2023
MATERIAL DEVELOPMENTS – Q1 2023 GOOD START TO 2023 Economic environment still subject to uncertainty Continuing operations report solid development High single-digit growth in sales (continuing operations), with strong organic growth in sales Operating EBIT margin on par with previous year
Slide 4: Agenda
AGENDA 1 MAJOR EVENTS – Q1 2023 2 INDUS’ DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES – Q1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 4
Slide 5: 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: 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 8: Agenda
AGENDA 1 MAJOR EVENTS – Q1 2023 2 INDUS’ DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES – Q1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 8
Slide 9: 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 9
Slide 10: 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 11: 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 12: 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 13: New Segment Management at a Glance
NEW SEGMENT MANAGEMENT AT A GLANCE DOUBLE ASSIGNMENTS WILL BE RESOLVED SEGMENT MANAGEMENT CENTRAL FUNCTIONS COO ENGINEERING COO INFRASTRUCTURE COO MATERIALS CEO CFO Driving Innovation, Strengthening the Portfolio Improving performance Striving for Sustainability Structure DISCONTINUED DISCONTINUED O
Slide 14: Introduction of Additional Key Figure
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 15: Agenda
AGENDA 1 MAJOR EVENTS – Q1 2023 2 INDUS’ DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES – Q1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 15
Slide 16: INDUS in Figures – Key Figures Q1 2023
INDUS IN FIGURES KEY FIGURES Q1 2023 SALES* EBIT EBIT MARGIN FREE CASH FLOW (in EUR million) (in EUR million) (in %) (in %) +8.2% 0.0 pp +8.2% +22.4 pp 416.5 450.8 9.9 9.9 41.4 44.8 7.5 -14.9 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 * from continuing operations 16
Slide 17: INDUS in Figures – Key Figures Q1 2023
INDUS IN FIGURES KEY FIGURES Q1 2023 OPERATING CASH FLOW NET DEBT EQUITY RATIO (in EUR million) (in EUR million) (in %) +2.9% 593.5 610.5 +0.1 pp <-100% 36.3 36.4 -17.8 1.5 Dec. 31, 2022 March 31, 2023 Dec. 31, 2022 March 31, 2023 Q1 2022 Q1 2023 17
Slide 18: Overview – Q1 2023
OVERVIEW – Q1 2023 PORTFOLIO REMAINS ROBUST DESPITE CHALLENGES KEY FIGURES: EARNINGS (in EUR million) Q1 2023 Q1 2022 ∆ in % Organic growth in sales of 6.5% and inorganic Sales 450.8 416.5 8.2 growth of 1.7% EBITDA 66.1 61.4 7.7 Operating income increased in proportion to sales EBIT 44.8 41.4 8.
Slide 19: Introduction of Additional Key Figure
INTRODUCTION OF ADDITIONAL KEY FIGURE SHARP INCREASE IN FREE CASH FLOW IN COMPARISON WITH SAME QUARTER OF PREVIOUS YEAR Introduction of free cash flow as an additional management in EUR million Q1 2023 Q1 2022 variable improves transparency regarding the funds freely available to the Group Operati
Slide 20: Revenue by Segment
REVENUE BY SEGMENT INCREASE IN SALES IN ALL SEGMENTS ENGINEERING INFRASTRUCTURE MATERIALS +18.0% +1.4% +6.6% 142.1 139.5 141.5 156.5 166.8 120.4 Sales (in EUR million) Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 20
Slide 21: EBIT per Segment
EBIT PER SEGMENT SOLID DEVELOPMENT IN MATERIALS SEGMENT ENGINEERING INFRASTRUCTURE MATERIALS EBIT before impairment (in EUR million) +43.6% +9.9% -33.5% 20.1 15.6 16.1 14.2 14.0 10.7 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 21
Slide 22: 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 23: Engineering
ENGINEERING STRONG INCREASE IN SALES THROUGHOUT SEGMENT Organic growth in sales of 12% and inorganic growth in sales of 6% Inorganic growth in sales INDUSTRY TREND from HEIBER + SCHRÖDER and HELD (acquisitions in 2022) According to VDMA, slight decline in incoming orders Strongest growth in sa
Slide 24: Engineering – Overview of Other Key Figures
ENGINEERING OVERVIEW OF OTHER KEY FIGURES (in EUR million) Q1 2023 Q1 2022 ∆ in % Revenue with external third parties 142.1 120.4 18.0 2023 FORECAST unchanged EBITDA 23.4 21.1 10.9 Slight rise in sales Depreciation/amortization -7.8 -6.9 -13.0 Strong rise in income EBIT 15.6 14.2 9.9 EBIT marg
Slide 25: 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 26: 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 27: Infrastructure
INFRASTRUCTURE QUICK ACQUIRED AS COMPLEMENTARY ADDITION FOR BETOMAX Closing of acquisition of QUICK, a complementary addition for BETOMAX, on March 31, 2023 INDUSTRY TREND Despite subdued economy in construction sector, growth in sales of 1.4% generated (purely organic) Subdued climate in the
Slide 28: Infrastructure – Overview of Other Key Figures
INFRASTRUCTURE OVERVIEW OF OTHER KEY FIGURES (in EUR million) Q1 2023 Q1 2022 ∆ in % Revenue with external third parties 141.5 139.5 1.4 2023 FORECAST unchanged EBITDA 16.8 22.1 -24.0 Slight rise in sales Depreciation/amortization -6.1 -6.0 -1.7 Strong rise in EBIT EBIT 10.7 16.1 -33.5 EBIT ma
Slide 29: 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 Demogra
Slide 30: Materials
MATERIALS OVERVIEW OF OTHER KEY FIGURES Growth in sales of 6.6% purely organic at virtually all portfolio companies, stable order situation INDUSTRY TREND Positive development in operating income in Q1 compared with the previous year following success in Order backlog in the sector remains hig
Slide 31: Materials – Overview of Other Key Figures
MATERIALS OVERVIEW OF OTHER KEY FIGURES (in EUR million) Q1 2023 Q1 2022 ∆ in % Revenue with external third parties 166.8 156.5 6.6 2023 FORECAST unchanged EBITDA 27.2 21.0 29.5 Rising sales Depreciation/amortization -7.1 -7.0 -1.4 Stable EBIT EBIT 20.1 14.0 43.6 EBIT margin: 6–8% EBIT margin
Slide 32: Discontinued Operations
DISCONTINUED OPERATIONS GOOD PROGRESS MADE IN SALE OF SCHÄFER AND SELZER AUTOMOTIVE TECHNOLOGY DISCONTINUED OPERATIONS THIS SEGMENT HAS BEEN DISSOLVED We will be parting ways with companies that have been We will part ways with certain companies in making losses for many years the Automotive Tec
Slide 33: Assets Held for Sale: SCHÄFER and SELZER
ASSETS HELD FOR SALE: SCHÄFER AND SELZER STATUS OF THE M&A PROCESSES Structured M&A process launched for both companies M&A processes being driven forward at full steam Non-binding offers received for both companies Select bidders are currently evaluating the target companies Evaluation of
Slide 34: Agenda
AGENDA 1 MAJOR EVENTS – Q1 2023 2 INDUS’ DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES – Q1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 34
Slide 35: Economic Environment – Outlook for 2023
ECONOMIC ENVIRONMENT – OUTLOOK FOR 2023 OUTLOOK FOR GERMAN ECONOMY VARIED Cautious optimism among industrial companies paired with restrained consumer sentiment Increase in incoming orders in industrial sector and positive momentum from investment and exports Supply bottlenecks for precursors
Slide 36: 2023 Forecast (for Continuing Operations) – Confirmed
2023 FORECAST (FOR CONTINUING OPERATIONS) – CONFIRMED INCREASE IN SALES AND INCREASED EBIT EXPECTED IN 2023 GROUP Forecast 2022 2023 Sales (in EUR billion) 1.80 1.90–2.00 EBIT (in EUR million) 133.7 145–165 EBIT margin (in %) 7.4 7.0 to 8.0 Free cash flow (in EUR million) 101.5 >100 Acquisitions 2 2
Slide 37: Agenda
AGENDA 1 MAJOR EVENTS – Q1 2023 2 INDUS’ DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES – Q1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 37
Slide 38: 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 39: Agenda
AGENDA 1 MAJOR EVENTS – Q1 2023 2 INDUS’ DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES – Q1 2023 5 OUTLOOK 6 SHAREHOLDER STRUCTURE AND DIVIDENDS 7 APPENDIX 39
Slide 40: INDUS Portfolio Companies – Engineering
INDUS PORTFOLIO COMPANIES ENGINEERING COMPANY DESCRIPTION LOCATION Robotic hands and automation systems for manufacturers Overath (DE), Plymouth (US) Specialist in logistics and material flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmalkalden (DE) Burbach (DE), Barcelona (ES), Burlingto
Slide 41: INDUS Portfolio Companies – Infrastructure
INDUS PORTFOLIO COMPANIES INFRASTRUCTURE COMPANY 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) Anc
Slide 42: INDUS Portfolio Companies – Materials
INDUS PORTFOLIO COMPANIES MATERIALS COMPANY DESCRIPTION LOCATION Carbide tools for road construction and mining, tunneling and specialist civil engineering, Aichhalden (DE), Charlotte (US), Taicang (CN) agriculture, etc. Cold extrusion parts, turned parts, and locking screws Hillesheim (DE), Taicang
Slide 43: 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 43
Slide 44: 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