Slide 1: Investor Presentation STS Group AG
Investor Presentation STS Group AG Investor Presentation STS Group AG Status Q4 2020 Personal & third party confidential www.sts.group STS Group © 2020 Slide / 1
Slide 2: Preferred global plastic and composite solution provider
Investor Presentation STS Group AG We are the preferred global plastic and composite solution provider for transportation systems when it comes to design, comfort and efficiency! Personal & third party confidential www.sts.group STS Group © 2020 Slide / 2
Slide 3: STS Group is excellently positioned to tackle the megatrends
Investor Presentation STS Group AG Megatrends STS Group is excellently positioned to tackle the megatrends EMISSION REDUCTION ALTERNATIVE POWERTRAIN DIGITALISATION TRANSPORT GROWTH MARKET IMPACT Personal & third party confidential STS Group is well-positioned to develop new innovative solutions to c
Slide 4: Megatrend – Emission reduction
Investor Presentation STS Group AG Megatrends Megatrend – Emission reduction MEGATREND MARKET IMPACT WHAT CAN STS DO? PRODUCT SOLUTIONS (examples) − New regulations for emission − Reduce total weight of the vehicle − Entire exterior trim solutions for reduction in Europe (EURO6) and with lightweight
Slide 5: Megatrend – Alternative powertrain
Investor Presentation STS Group AG Megatrends Megatrend – Alternative powertrain MEGATREND MARKET IMPACT WHAT CAN STS DO? PRODUCT SOLUTIONS (examples) − Alternative powertrain systems for − Development of new components − Component to cover battery vehicles for eVehicles systems − Advance of eMobili
Slide 6: Megatrend – Digitalization
Investor Presentation STS Group AG Megatrends Megatrend – Digitalization MEGATREND MARKET IMPACT WHAT CAN STS DO? PRODUCT SOLUTIONS (examples) − Autonomous or semi-autonomous − Development of complex systems, − Spoiler roof for camera systems driving to include radar and camera − Interior trim appli
Slide 7: Megatrend – Transport growth
Investor Presentation STS Group AG Megatrends Megatrend – Transport growth MEGATREND MARKET IMPACT WHAT CAN STS DO? PRODUCT SOLUTIONS (examples) − Growing e-commerce market − Extend customer portfolio and − Smart and efficient system − Increasing logistics activities global footprint to become a lea
Slide 8: STS Group at a glance
Investor Presentation STS Group AG STS Group at a glance Personal & third party confidential www.sts.group STS Group © 2020 Slide / 8
Slide 9: Current year impacted by transformation of STS Group
Investor Presentation STS Group AG STS Group at a glance Current year impacted by transformation of STS Group 2017 Current year mainly impacted by COVID-19 2015 Acquisition of global composite 2019 pandemic and the disinvestment of the BU Greenfield plant in truck business from Plastic Acoustics act
Slide 10: Intelligence for interior and exterior excellence
Investor Presentation STS Group AG STS Group at a glance Intelligence for interior and exterior excellence Hood STS designs and provides solutions for a broad variety of interior and exterior systems. So STS is the perfect partner to Front shelf engineer successful heavy and light commercial vehicle
Slide 11: Diversified global customer portfolio
Investor Presentation STS Group AG STS Group at a glance Diversified global customer portfolio STS Group is strategic partner for major MEDIUM HEAVY LIGHT COMMERCIAL LIGHT AGRICULTURE eVEHICLES part of global commercial vehicle OEMs, as COMMERCIAL VEHICLES VEHICLES AND OTHERS well as for the emergin
Slide 12: Long-term project life cycles
Investor Presentation STS Group AG STS Group at a glance Long-term project life cycles STS Group acts within a market with long product cycles, which implies long-lasting 01 04 projects once acquired. Request for Start of Quotation (RFQ) Production (SOP) − After RFQ the procurement process can lead
Slide 13: Unique selling points of the STS Group
Investor Presentation STS Group AG STS Group at a glance Unique selling points of the STS Group COMBINE TECHNOLOGIES Technological know-how for structural, COMBINE TECHNOLOGIES visual and own material HIGH VERTICAL INTEGRATION Vertically integrated production from semi- HIGH VERTICAL INTEGRATION fin
Slide 14: Combine technologies
Investor Presentation STS Group AG STS Group at a glance Combine technologies STS is able to combine different COMPLETE ROOF SPOLER SYSTEM COMPLETELY ASSEMBLED FRONT MODUL technologies − Injection molding technology − Composite component production and to offer complete systems to the customer. Glob
Slide 15: Vertical integration
Investor Presentation STS Group AG STS Group at a glance Vertical integration Vertical integration production process sets Composite components (SMC, BMC, AMC) Injection molded components STS Group apart from their competitors. RAW MATERIAL RAW MATERIAL The high vertical integration and ability to c
Slide 16: Batch-size flexibility
Investor Presentation STS Group AG STS Group at a glance Batch-size flexibility STS Group focuses on medium batch size Total production costs include unit costs plus tooling production with a yearly production of up to 100,000 parts per year, which is mostly attractive Sheet metal forming for SMC co
Slide 17: Global footprint
Investor Presentation STS Group AG STS Group at a glance Global footprint STS Group has operations in 4 continents FRANCE with about 1,600 employees. – St. Désirat / Andance – Précigné STS Group has 8 production plants and 4 – Izernore GERMANY logistic/service plants. – Blainville – Hallbergmoos HQ
Slide 18: STS Group Strategy
Investor Presentation STS Group AG STS Group Strategy Personal & third party confidential www.sts.group STS Group © 2020 Slide / 18
Slide 19: Roadmap to global preferred system supplier with sustainable profit growth
Investor Presentation STS Group AG STS Group strategy Roadmap to global preferred system supplier with sustainable profit growth GROWTH IN CHINA MARKET ENTRY USA ADD-ON ACQUISITIONS China, as the largest automotive market USA is an attractive market being the Continuous market screening for potentia
Slide 20: Growth in China
Investor Presentation STS Group AG STS Group strategy Growth in China POTENTIAL FOR STS OBJECTIVES THE ROAD TO SUCCESS − Largest market worldwide − Double current sales volume in the − All major truck manufacturers are − Local competitors only small local mid-term already STS customers family busine
Slide 21: Fully settled footprint to support aspired growth in China
Investor Presentation STS Group AG STS Group strategy Fully settled footprint to support aspired growth in China STS currently operates 3 production sites located strategically in close proximity to Chinese OEMs in the North and in the South. Thermocompression represents STS’ technology focus in Chi
Slide 22: Market entry USA
Investor Presentation STS Group AG STS Group strategy Market entry USA POTENTIAL FOR STS OBJECTIVES THE ROAD TO SUCCESS − Third-largest truck market worldwide − Market entry with composite − Projects for American truck OEM − Long-nose trucks with higher value technology acquired per vehicle (+120% m
Slide 23: Major contract allows set up of new plant in the USA
Investor Presentation STS Group AG STS Group strategy Major contract allows set up of new plant in the USA STS got awarded by a major international truck OEM. Scope of the project will be the production of an exterior system made of SMC. The duration of the project will be over ten years, with a lif
Slide 24: New products
Investor Presentation STS Group AG STS Group strategy New products POTENTIAL FOR STS OBJECTIVES THE ROAD TO SUCCESS − eMobility and emission regulation − Supplier for emerging eMobility − Tech-Days with several customers trigger need for new products market − Bundling of group-wide R&D activities −
Slide 25: eVehicle development within the next years
Investor Presentation STS Group AG STS Group strategy eVehicle development within the next years Europe1) China1) Global) 33% 35% 48% ICE2) ICE2) ICE2) 55% 50% HEV2) HEV2) 40% HEV2) 12% 14% 12% BEV2) BEV2) BEV2) 2020 2022 2024 2026 2020 2022 2024 2026 2020 2022 2024 2026 − Total share of HEV (Hybrid
Slide 26: Significant sales potential with battery covers
Investor Presentation STS Group AG STS Group strategy Significant sales potential with battery covers Increase of hybrid- and battery- electric vehicle production in the next years leads Battery Cover Market Europe1) Battery Cover Market China1) to further sales volume from battery SMC SMC covers. t
Slide 27: Financial Highlights FY 2020
Investor Presentation STS Group AG Financial Highlights FY 2020 Personal & third party confidential www.sts.group STS Group © 2020 Slide / 27
Slide 28: Development of relevant automotive markets
Investor Presentation STS Group AG Financial Highlights Development of relevant automotive markets European market heavily impacted by COVID-19 related plant closures of all OEMs in March and MHCV Europe2) (1,000 units1)) Automotive China3) (1,000 units1)) April. +0.8% +10.6% Ramp-up of production i
Slide 29: STS Group achieved outlook for fiscal year 2020
Investor Presentation STS Group AG Financial Highlights STS Group achieved outlook for fiscal year 2020 FY 2020 Guidance (November 17, 2020) FY 2020 Preliminary Figures (before IFRS 5) - increasingly positive development of customer call-offs - China segment with strong growth also in Q4 - no furthe
Slide 30: Strong fourth quarter for BU Plastics and BU China
Investor Presentation STS Group AG Financial Highlights Strong fourth quarter for BU Plastics and BU China all values Revenues* Adj. EBITDA* in mEUR -6.2% Comments: 2019 2020 +28.0% 250.7 235.0 17.9 17.7 61.8 79.1 4.6 6.6 Revenues decreased by 6.2% yoy in FY 2020: STS Group (incl. HQ / conso) − Sa
Slide 31: Great performance in Q4 2020 in China as also in Europe
Investor Presentation STS Group AG Financial Highlights Great performance in Q4 2020 in China as also in Europe Revenues (in mEUR)* Revenues by segment (in % of total revenues)* FY yoy 79.1 %-change 66.4 67.2 61.8 55.2 51.8 57.5 46.7 9% -33.0% BU Materials 55% -23.1% BU Plastics Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 32: Adjusted EBITDA benefits from recovery in second HY
Investor Presentation STS Group AG Financial Highlights Adjusted EBITDA benefits from recovery in second HY Adj. EBITDA (in mEUR)* EBITDA Adj. EBITDA Adj. EBITDA Margin (in %)* 8.3 7.1 6.6 Q4 19 Q4 20 FY 19 FY 20 6.4 5.0 5.0 4.6 Plastics 7.3% 11.2% 7.5% 1.8% 4.3 4.3 4.0 3.0 3.0 1.6 China 25.9% 19.6%
Slide 33: Net income impacted by top line and one-time effects
Investor Presentation STS Group AG Financial Highlights Net income impacted by top line and one-time effects Adj. EBITDA / Net Income Bridge FY 2020 (in mEUR) -3.0 17.7 14.7 -1.4 -16.1 t/o: -12.1 - 2.7 m€ severance and restructuring -5.2 -15.9 - 0.3 m€ expenses for sell BU acoustics -9.3 Adj. Adj. E
Slide 34: Trade working capital (TWC)
Investor Presentation STS Group AG Financial Highlights Trade working capital (TWC) TWC (in mEUR) TWC Bridge (in mEUR) w/o Tooling Working Capital & w/o Tooling Working Capital Intercompany 23.9 17.1 40.0 37.1 2.8 25.5 5.8 14.4 17.1 7.7 12.1 5.8 31/03 30/06 30/09 31/12 31/03 30/06 30/09 31/12 9.8 20
Slide 35: Net debt on solid level with leverage ratio of 1.3x
Investor Presentation STS Group AG Financial Highlights Net debt on solid level with leverage ratio of 1.3x Net financial debt and leverage ratio (in mEUR / multiple) Financial debt (in mEUR) 2019 2020 59.2 31/03 30/06 30/09 31/12 31/03 30/06 30/09 31/12 56.1 55.6 48.9 Bank loans 16.7 15.5 14.0 12.4
Slide 36: Outlook
Investor Presentation STS Group AG Outlook Personal & third party confidential www.sts.group STS Group © 2020 Slide / 36
Slide 37: STS Group well positioned for 2021
Investor Presentation STS Group AG Outlook STS Group well positioned for 2021 FY 2021 Guidance (April 7, 2021) - Market normalization is China in the second half of the year - Steadily recover in Europe over the course of the year - Flexibility to adjust production to OEM needs and market events MAR
Slide 38: Strategy Update – Back to Basics
Investor Presentation STS Group AG Outlook Strategy Update – “BACK TO BASICS” Product portfolio profitability analysis Organizational simplification and reallocation of responsibilities Intensification of R&D activities to offer new innovative Personal & third party confidential products as a busine
Slide 39: Capital Market
Investor Presentation STS Group AG Capital Market Personal & third party confidential www.sts.group STS Group © 2020 Slide / 39
Slide 40: STS Group an attractive asset for today and tomorrow
Investor Presentation STS Group AG Capital Market STS Group an attractive asset for today and tomorrow Investment in STS Group with attractive value proposition: Global growth potential − leading market positions, − excellently positioned to tackle the Today … Solid order book … megatrends, − high t
Slide 41: Disclaimer
Investor Presentation STS Group AG Disclaimer This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in pa
Slide 42: Thank you for your attention!
Investor Presentation STS Group AG Thank you for your attention! Contact us ir@sts.group Personal & third party confidential www.sts.group STS Group © 2020 Slide / 42