Indus Holding Ag · XETR:INH
Indus — 9M 2020 Earnings Presentation
61 slides from Indus's earnings presentation, Nov 12, 2020
Slide 1: Presentation of the Results for the First Nine Months of 2020
PRESENTATION OF THE RESULTS FOR THE FIRST NINE MONTHS OF 2020 Bergisch Gladbach, 12th November 2020
Slide 2: Agenda
AGENDA 1 INDUS - OUR DNA 2 PARKOUR - OUR STRATEGY 3 INDUS IN NUMBERS - 9M 2020 4 OUTLOOK 5 INDUS SHARE & DIVIDENDS 6 APPENDIX 2
Slide 3: Introducing the INDUS Board of Management
INTRODUCING THE INDUS BOARD OF MANAGEMENT BROAD EXPERTISE FROM GERMAN SMES Dr. Johannes Schmidt Dr. Jörn Großmann Axel Meyer Rudolf Weichert Chairman of the Board of Management Member of the Board of Management Member of the Board of Management Member of the Board of Management Member of the Managem
Slide 4: INDUS Business Model
INDUS BUSINESS MODEL WE ARE PASSIONATE ABOUT SMES WE... ʜ are the leading specialist in long-term investment and development in the German SME Sector. ʜ invest in SME Hidden Champions. ʜ build on a diversified portfolio of 46 companies in the German-speaking area. ʜ ensure growth and stable earnings
Slide 5: Geographic Diversification
INDUS BUSINESS MODEL GEOGRAPHIC DIVERSIFICATION – INDUS HAS A PRESENCE IN OVER 30 COUNTRIES Breakdown of revenues by regions Germany Europe Rest of the world Employees by regions Germany Europe Rest of the world Revenue and employee figures and locations as of 31 Dec. 2019, Europe = EU and Switzerla
Slide 6: M&A Process at INDUS
M&A PROCESS AT INDUS INVESTMENTS IN SECTORS OF THE FUTURE Wanted: SMEs with a long-term perspective No restructuring No start-ups Financial criteria Operational criteria OUR PROMISE • Revenues EUR 20 - 100 million • Broad customer structure • Double-digit profit margin • Niche positioning • Equity r
Slide 7: Long-Term Holding Perspective Ensures Stability
LONG-TERM HOLDING PERSPECTIVE ENSURES STABILITY BALANCED PORTFOLIO STRUCTURE BY YEAR, REVENUE AND REGION INDUS is a long-term investor Portfolio structure by years: Portfolio structure by revenues: Portfolio structure by regions: 74% > 10 years in the portfolio EUR 10 – 100 million Focus on German S
Slide 8: Creating Sustainable Value
CREATING SUSTAINABLE VALUE CONTINUE TO DELIVER ON OUR PROMISES Focus on sustainable and long-term corporate development in Germany’s manufacturing SME sector SHAREHOLDERS SELLING Dr. Johannes ENTREPRENEURS Schmidt (CEO) They have the opportunity to invest in a broadly diversified managed portfolio o
Slide 9: Diversification as a Strategic Core Element
INDUS BUSINESS MODEL CONTENT DIVERSIFICATION AS A STRATEGIC CORE ELEMENT REVENUE SHARES OF THE SEGMENTS (BASIS:9M 2020) 25.4% 17.0% 22.4% 9.2% 26.0% Construction/ Automotive Engineering Medical Engineering Metals Technology Infrastructure 11 Technology 12 portfolio and Life Science 10 portfolio port
Slide 10: Agenda
AGENDA 1 INDUS - OUR DNA 2 PARKOUR - OUR STRATEGY 3 INDUS IN NUMBERS - 9M 2020 4 OUTLOOK 5 INDUS SHARE & DIVIDENDS 6 APPENDIX 10
Slide 11: Strategy
STRATEGY THE NAME STANDS FOR GREATER AGILITY 11
Slide 12: Our Goals for the Next Years
OUR GOALS FOR THE NEXT YEARS 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 future. 1.
Slide 13: Package of Measures
PACKAGE OF MEASURES FOCUS: PORTFOLIO OPTIMIZATION & SUSTAINABLE EARNINGS IMPROVEMENT Start Mid 2020 13
Slide 14: INDUS Key Figures – One-Time Effects (Update)
INDUS KEY FIGURES – ONE-TIME EFFECTS (UPDATE) “INTERIM SPRINT” PROGRAM OF MEASURES AS OF 30 SEPT. 2020 (9M 2020) ʜ “Interim Sprint” set of measures for portfolio optimization (sale and closure of company areas) ʜ Adverse effect on EBITDA of EUR 6.3 million ʜ Additional charges at EBIT level due to i
Slide 15: Update on Interim Sprint: Sale of Fichthorn
UPDATE ON “INTERIM SPRINT” SALE OF FICHTHORN SUB-SUBSIDIARY TO STRATEGIST ʜ Fichthorn GmbH & Co. KG, production of components, series and assemblies for automotive component suppliers and the architectural hardware industry. The company also produces complex installation and welding assemblies. ʜ He
Slide 16: Update on Interim Sprint: SIMON Systems
UPDATE ON “INTERIM SPRINT” PLASTIC ELECTROPLATING OPERATIONS OF SIMON SYSTEMS DISCONTINUED AS PLANNED ʜ The SIMON Group’s “Systems” division is a systems supplier of high-quality, predominantly electroplated plastic injection molded parts ʜ Plastic electroplating at the company’s site no longer viab
Slide 17: Update on Interim Sprint: Shutdown of BACHER AG
UPDATE ON “INTERIM SPRINT” SHUTDOWN OF BACHER AG (CH) DECIDED IN THE MEANTIME ʜ BACHER AG is a supplier and manufacturer of assemblies and components for rail vehicles and a long-standing partner of manufacturers and operators of rail vehicles in the European market ʜ Lack of competitiveness of the
Slide 18: Acquisition of Remaining Shares as Planned
ACQUISITION OF REMAINING SHARES AS PLANNED M+P, PEISELER, MBN AND SELZER Engineering Shares of an existing shareholder and former managing director acquired as planned January 2020 Acquisition of additional shares in the amount of 14.5%*, current share: 91.06% A member of INDUS since 2017 Sh
Slide 19: Internationalization
INTERNATIONALIZATION ESTABLISHMENT OF BEST-COST LOCATIONS FOR AUTOMOTIVE SERIES PRODUCTION SUPPLIERS Factories at best-cost locations Repositioning of series production suppliers is proceeding according to plan Automotive Technology segment “The establishment of a best-cost location in Bosnia for ne
Slide 20: Our Goals for the Next Years
OUR GOALS FOR THE NEXT YEARS 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 INNOVATION ʜ Exp
Slide 21: Strategic Initiatives
STRATEGIC INITIATIVES FOCUS 2 AND 3 2. DRIVE INNOVATION 3. INCREASE PERFORMANCE Strengthen innovation Strengthen operational excellence Strengthen financial excellence Business Technology & innovation Production development / Conservative financial management marketing / sales Fields of work: Fields
Slide 22: Innovation at INDUS
INNOVATION AT INDUS INTEGRATED APPROACH AND SUPPORT FOR PORTFOLIO COMPANIES Innovation at INDUS Pillars of the innovation strategy Dr. Jörn Großmann Digitalization of products (Member of the Board of Management) “Broadened understanding of innovation: Prepare products for integration Apart from prod
Slide 23: Design Software & Product Configurator
DESIGN SOFTWARE & PRODUCT CONFIGURATOR ANCOTECH AG COMPATIBLE FOR BUILDING INFORMATION MODELLING (BIM) Adding value through the digitalization of building project management Marc Barras (Managing Director of ancotech AG) High customer benefit “Our ancotech software has made us stand out from the mar
Slide 24: Development of a Cloud Solution for the Management of Data
DEVELOPMENT OF A CLOUD SOLUTION FOR THE MANAGEMENT OF DATA IPETRONIK PLACES CLEAR FOCUS ON DIGITALIZATION Efficient development of measuring systems and services for vehicle development IPEcloud web portal for fleet testing MATLAB for the management and simulation (also) of measurement data IPEcloud
Slide 25: Development of a Glovebox with Voice Control
DEVELOPMENT OF A GLOVEBOX WITH VOICE CONTROL MBRAUN CONTINUES TO INNOVATE Autonomous and voice-based operation of the glovebox Gloveboxes for hands-free operation Versatile laboratory innovation... ...for various solutions in technology research (lithium-ion, OLED/PLED, additive manufacturing) A glo
Slide 26: Strengthening Operational Excellence (1/2)
STRENGTHENING OPERATIONAL EXCELLENCE IN THE PORTFOLIO COMPANIES (1/2) UPDATE SALES: FURTHER TRAINING FOR MANAGERS Subject Contents KPIs 2020 Sales excellence and success factors in a difficult market environment Alignment in sales – from revenue target to implementation planning Sales 2 semina
Slide 27: Strengthening Operational Excellence (2/2)
STRENGTHENING OPERATIONAL EXCELLENCE IN THE PORTFOLIO COMPANIES (2/2) UPDATE PRODUCTION: FURTHER TRAINING FOR MANAGERS Contents Development of lean management training Transfer of methodological knowledge to carry out improvement activities and projects in the company Lean management & process opt
Slide 28: Strategic Initiative: Strengthening Financial Excellence
STRATEGIC INITIATIVE “STRENGTHENING FINANCIAL EXCELLENCE” CONSERVATIVE FINANCIAL MANAGEMENT ʜ Objective: Stable balance sheet ratios and strong equity base Strengthen financial excellence ʜ Broadly diversified financing base and long-term relationships with existing lenders Conservative financial ma
Slide 29: Sustainability as a Key Element of the Strategy
SUSTAINABILITY AS A KEY ELEMENT OF THE STRATEGY THE FOLLOWING SEVEN OBJECTIVES HAVE BEEN ANCHORED AS THE FOCUS Investments Sustainable expansion and internal development of the investment portfolio ENVIRONMENTAL • Clear definition of objectives and measures at investment Increase in efficiency throu
Slide 30: Sustainability as an Integral Component
INDUS BUSINESS MODEL 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 Performance’ and hence also ‘Prime’ status Top position in the international peer group
Slide 31: Agenda
AGENDA 1 INDUS - OUR DNA 2 PARKOUR - OUR STRATEGY 3 INDUS IN NUMBERS - 9M 2020 4 OUTLOOK 5 INDUS SHARE & DIVIDENDS 6 APPENDIX 31
Slide 32: INDUS Key Figures: 9M 2020 at a Glance
INDUS KEY FIGURES 9M 2020 AT A GLANCE CORONAVIRUS EFFECTS STILL NOTICEABLE EARNINGS FIGURES Sales 9M 2020 1,164.1 9M 2019 1,312.8 ̋LQ -11.3 DESPITE IMPROVEMENT IN Q3 EBITDA EBIT before impairments 114.4 45.1 168.1 103.1 -31.9 -56.3 EBIT-Margin before impairments (in %) 3.9 7.9 -4,0pp Impairments -40
Slide 33: Statement of Cash Flows January to 30 September 2020
INDUS KEY FIGURES STATEMENT OF CASH FLOWS FROM 1 JANUARY 2020 TO 30 SEPTEMBER 2020 84.6 -13.6 Investments in property, Cash outflow plant and equipment slightly and intangible assets Cash flow below of EUR 26.7 million are from previous below 9M level of financing OPERATING CASH year’s level previou
Slide 34: Resilience in Times of Crisis Thanks to SME Agility
RESILIENCE IN TIMES OF CRISIS THANKS TO SME AGILITY CORONAVIRUS UPDATE – TEMPORARY REDUCTION IN COST BASE IN TIMES OF CRISIS ʜ Innovative sales strategies and distribution channels using the digital infrastructure ensure that portfolio companies retain their ability to act ʜ INDUS continues to suppo
Slide 35: One-Time Effects in Detail
INDUS KEY FIGURES – ONE-TIME EFFECTS IN DETAIL PRESENTATION OF THE EFFECTS ON INCOME BY MEASURES AND SEGMENTS Change Q3 vs. Q2 2020 “Intermediate sprint” set of measures Impairment test Automotive Metals Automotive Metals One-time effects (in EUR million) Totals Engineering Totals Technology Technol
Slide 36: Construction/Infrastructure in 9M 2020
INDUS KEY FIGURES CONSTRUCTION/INFRASTRUCTURE IN 9M 2020 TREND REMAINS GOOD DESPITE COVID-19 ʜ Solid sales trend despite the strong prior year period. ʜ Disproportionate increase in operating income; EBIT margin of 18.0% clearly exceeds the previous year’s level. Slightly declining EBIT margin of 17
Slide 37: Automotive Technology in 9M 2020
INDUS KEY FIGURES AUTOMOTIVE TECHNOLOGY IN 9M 2020 STABILIZATION HAS STARTED BUT UNCERTAINTY REMAINS HIGH ʜ Very sharp declines in sales in April and May caused by COVID-19 pandemic; slow pick-up since June and noticeable increase in sales since September. ʜ Goodwill impairments of EUR 29.2 million
Slide 38: Engineering in 9M 2020
INDUS KEY FIGURES ENGINEERING IN 9M 2020 ORDER INTAKE REMAINS SLUGGISH ʜ Declining sales at all segment companies. Companies in the machine tool and automotive-related automation technology sectors continue to be particularly hard hit by the coronavirus. ʜ Order intake at most of the segment compani
Slide 39: Medical Engineering/Life Science in 9M 2020
INDUS KEY FIGURES MEDICAL ENGINEERING/LIFE SCIENCE IN 9M 2020 BRIGHTER PROSPECTS SINCE MID-YEAR ʜ Unexpectedly strong decline in sales until June due to disruption of rehabilitation technology business and the absence of “normal” operations during the main months of the lockdown. ʜ Encouragingly, sa
Slide 40: Metals Technology in 9M 2020
INDUS KEY FIGURES METALS TECHNOLOGY IN 9M 2020 SLIGHT RECOVERY IN THE THIRD QUARTER ʜ Noticeable decline in sales felt in the first half of the year; brightening up in the third quarter and return to the previous year’s level. ʜ Goodwill impairments of EUR 2.4 million (Q2 2020) and one-time expenses
Slide 41: Liquidity Secured
LIQUIDITY SECURED DIVERSIFIED FINANCING MIX AND BALANCED MATURITY PROFILE Long-term, bilateral credit relationships with core banks ensure ability to act No syndicated credit lines Main points of the financing: No collateral, strict equal treatment of lenders, negative pledge Financial liabilities C
Slide 42: ESG-Linked Promissory Note Loan
ESG-LINKED PROMISSORY NOTE LOAN BORROWINGS (VOLUME 60 EURM) Consistent continuation of the sustainability strategy as a natural element of INDUS’ corporate strategy Promissory note transaction 2020 “Sustainability has been a key element of INDUS’ corporate strategy for many years. With the ESG-linke
Slide 43: INDUS Will Master the Challenge
EFFECTS OF COVID-19 INDUS FURTHER STRONG DURING CRISIS Reduced risks due to geographically and content-wise diversified portfolio and agility of the SME structures Securing of the future viability Financial stability of the portfolio companies by due to good equity base and driving innovation and su
Slide 44: Agenda
AGENDA 1 INDUS - OUR DNA 2 PARKOUR - OUR STRATEGY 3 INDUS IN NUMBERS - 9M 2020 4 OUTLOOK 5 INDUS SHARE & DIVIDENDS 6 APPENDIX 44
Slide 45: General Outlook for 2020
GENERAL OUTLOOK FOR 2020 GENERAL ENVIRONMENT STRONGLY INFLUENCED BY THE EFFECTS OF COVID-19 ʜ Continued high losses in the global economy due to the effects of the COVID-19 crisis. ʜ The effects of the US elections on economic trade relations are not yet foreseeable. ʜ Germany’s GDP likely to contra
Slide 46: Outlook for 2020 – Forecast: Guidance for the Group
OUTLOOK FOR 2020 - FORECAST GUIDANCE FOR THE GROUP EFFECTS OF CORONA-PANDEMIC VISIBLE ON GROUP GUIDANCE Forecast 2020 EUR 1.45 – 1.6 billion Revenue Revenue 2019 1,45 – 1,6 Mio. EUR Forecast 2020 EUR 0 – 20 million Operating result (EBIT) UMSATZ (2020) Operating result (EBIT) 2019 1,45 – 1,6 Mio. EU
Slide 47: Outlook for 2020 – Guidance on Segment Level
OUTLOOK FOR 2020 – FORECAST (PRECISION OF GUIDANCE FOR CONSTR.) GUIDANCE ON SEGMENT LEVEL EXPECTED CONSEQUENCES OF THE CORONA PANDEMIC SHAPE THE SEGMENT FORECAST CONSTR./INFRASTRUCTURE AUTOMOTIVE TECHNOLOGY ENGINEERING MED. ENGIN./LIFE SCIENCE METALS TECHNOLOGY 600 16.2% 600 600.0 600 15% 150.0% 145
Slide 48: Agenda
AGENDA 1 INDUS - OUR DNA 2 PARKOUR - OUR STRATEGY 3 INDUS IN NUMBERS - 9M 2020 4 OUTLOOK 5 INDUS SHARE & DIVIDENDS 6 APPENDIX 48
Slide 49: Share and Dividend
SHARE AND DIVIDEND ANCHOR SHAREHOLDERS SUPPORT LONG-TERM COURSE OF BUSINESS WKN/ISIN 620010/DE 000 620 010 8 Shareholder base (as of 12.11.2020) Established/IPO 1986/1995 Fiscal year 01.01. – 31.12. Capital stock EUR 63.6 milion 19.4% 24,450,509 no-name bearer Number of shares Last capital shares in
Slide 50: Share and Dividend: Payout Policy and Track Record
SHARE AND DIVIDEND DIVIDEND PAYOUT POLICY AND DIVIDEND TRACK-RECORDS BY INDUS HOLDING AG Shareholders regularly A good 50% of profits Up to 50% participate in successful are retained to strengthen of profits business performance the company are distributed * Net profit in EUR millions 50
Slide 51: 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. Jörn Großmann (Board member) 51
Slide 52: Agenda
AGENDA 1 INDUS - OUR DNA 2 PARKOUR - OUR STRATEGY 3 INDUS IN NUMBERS - 9M 2020 4 OUTLOOK 5 INDUS SHARE & DIVIDENDS 6 APPENDIX 52
Slide 53: Contact
CONTACT INVESTOR RELATIONS PUBLIC RELATIONS DAFNE SANAC JANA KÜLSCHBACH +49 (0) 2204-4000-32 +49 (0) 2204-4000-35 investor.relations@indus.de presse@indus.de 53
Slide 54: Financial Calendar
FINANCIAL CALENDAR PUBLICATION DATES 2021 DATE EVENT VENUE 23 February 2021 Preliminary Results 2020 Publication 23 March 2021 Publication of Annual Report 2020 Online 24 March 2021 Analysts’ conference on the 2020 fiscal year Online 12 May 2021 Publication of the interim report for Q1 2021 Publicat
Slide 55: INDUS Portfolio Companies: Construction/Infrastructure
INDUS PORTFOLIO COMPANIES 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 acrylic Reichs
Slide 56: INDUS Portfolio Companies: Automotive Technology
INDUS PORTFOLIO COMPANIES AUTOMOTIVE TECHNOLOGY SEGMENT COMPANIES DESCRIPTION LOCATIONS Mudau (DE), Grand Rapids (US), Istanbul (TR), Nuenen (NL), Heating and air-conditioning systems for vehicles Oettingen (DE), Shanghai (CN), Weert (NL) Innovative cold extrusion parts, turned parts and locking scr
Slide 57: INDUS Portfolio Companies: Engineering
INDUS PORTFOLIO COMPANIES ENGINEERING SEGMENT COMPANIES DESCRIPTION LOCATIONS Robotic hands and automation systems for manufacturers Overath (DE), Plymouth (US), Wörth an der Donau (DE) Specialist for logistics and material flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmalkalden (DE) Bu
Slide 58: INDUS Portfolio Companies: Medical Engineering/Life Science
INDUS PORTFOLIO COMPANIES MEDICAL ENGINEERING/LIFE SCIENCE COMPANIES DESCRIPTION LOCATIONS Assembly of non-woven fabric products for medical, cosmetic, cleaning and personal hygiene products +¸VEDFK '( .¸QLJVZDOGH '( /XEDĆ 3/ Miniaturized precision optics :LWWHQEDFK &+ .DÉ 65% 6DXHUODFK '( Bamberg (
Slide 59: INDUS Portfolio Companies: Metals Technology
INDUS PORTFOLIO COMPANIES 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) Metal an
Slide 60: Economic Development 2019
ECONOMIC DEVELOPMENT 2019 THE REPORTING YEAR AT A GLANCE EARNINGS FIGURES 2019 2018 ̋LQ CASH FLOW FIGURES 2019 2018 ̋LQ Sales 1,742.8 1,710.8 1.9 Operating cash flow 167.7 96.0 74.7 EBITDA 225.7 218.1 3.5 Cash flow from operating EBIT before impairment 135.2 150.5 -10.2 activities 147.3 74.7 97.2 EB
Slide 61: Disclaimer
INDUS HOLDING AG 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 for any d