Indus Holding Ag · XETR:INH
Indus — Investor Day (March 2023)
99 slides from Indus's investor day presentation, Mar 24, 2023
Slide 1: INDUS CMD: Our Track to 2025
INDUS CMD “OUR TRACK TO 2025” COLOGNE, March 24, 2023
Slide 2: Agenda
AGENDA Arrival and welcome 09.30 – 10.00 Dafne Sanac INDUS DNA and financial results 2022 10.00 – 11.00 Dr. Johannes Schmidt, Rudolf Weichert 11.00 – 11.30 Q&A session Striving for Sustainability 11.30 – 12.00 Dr. Jörn Großmann 12.00 – 12.45 Lunch or short guided tour of the museum (30 minutes) Upda
Slide 3: Agenda
AGENDA 1 WELCOME 2 INDUS DNA 3 FINANCIAL RESULTS 2022 4 STRIVING FOR SUSTAINABILITY 5 PARKOUR PERFORM 6 NEW SEGMENTS 7 OUR GROWTH TRAJECTORY 8 FAREWELL 9 APPENDIX 3
Slide 4: Welcome
WELCOME 4
Slide 5: Agenda
AGENDA 1 WELCOME 2 INDUS DNA 3 FINANCIAL RESULTS 2022 4 STRIVING FOR SUSTAINABILITY 5 PARKOUR PERFORM 6 NEW SEGMENTS 7 OUR GROWTH TRAJECTORY 8 FAREWELL 9 APPENDIX 5
Slide 6: We are shaping the future: the INDUS core
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 7: The INDUS Operating System
THE “INDUS OPERATING SYSTEM” CONSISTENT PORTFOLIO DEVELOPMENT HOLDING COMPANY Accounting, tax, legal at Managerial accounting at Financing the INDUS Group holding company level portfolio companies Improving Performance Striving for Driving Innovation (Operational Excellence, Market Excellence) Susta
Slide 8: Strengthening the portfolio structure
#1 STRENGTHENING THE PORTFOLIO STRUCTURE Pushing acquisitions in the relevant future fields Assessing selective company sales 8
Slide 9: INDUS acquisition model attractive for family-run businesses
INDUS ACQUISITION MODEL ATTRACTIVE FOR FAMILY-RUN BUSINESSES BUY, HOLD & DEVELOP STRATEGIC ACQUISITION PROFILE: CRITERIA WE TURN MEGATRENDS INTO THE KEY FUTURE FIELDS FOR GERMAN SMES Focus on non-cyclical business models to further diversify the portfolio 9
Slide 10: Strengthening the portfolio structure: acquisitions
STRENGTHENING THE PORTFOLIO STRUCTURE GROWING INORGANICALLY THROUGH ACQUISITIONS WIRUS M+P HELD SYSTEMS PEISELER MESUTRONIC JST H.HEITZ DSG HEIBER + SCHRÖDER 2016 2017 2018 2019 2020 2021 2022 10
Slide 11: INDUS – Sustainable for stakeholders
INDUS – SUSTAINABLE FOR STAKEHOLDERS OUR PROMISE TO OUR STAKEHOLDERS Shareholders invest in a managed They can evolve within a secure portfolio of technology-oriented framework and receive industrial companies in the SME important input and support to PORTFOLIO SHAREHOLDERS sector of the German spea
Slide 12: Agenda
AGENDA 1 WELCOME 2 INDUS DNA 3 FINANCIAL RESULTS 2022 4 STRIVING FOR SUSTAINABILITY 5 PARKOUR PERFORM 6 NEW SEGMENTS 7 OUR GROWTH TRAJECTORY 8 FAREWELL 9 APPENDIX 12
Slide 13: Material developments FY 2022
MATERIAL DEVELOPMENTS FY 2022 GOOD PERFORMANCE FOR CONTINUING OPERATIONS Volatile macroeconomic environment in 2022 (Russia-Ukraine war; energy prices; interest rate hike; price-adjusted GDP growth of 1.8%) Decision to liquidate the Automotive Technology segment (continuing and discontinued oper
Slide 14: Technical remarks on annual report 2022
TECHNICAL REMARKS ON ANNUAL REPORT 2022 ANNUAL REPORT DOMINATED BY SPLIT IN CONTINUED AND DISCONTINUED OPERATIONS Reclassification of SCHÄFER, SELZER and SMA as discontinued operations in accordance with IFRS 5 triggered by decision of the Management Board to give up Automotive segment and to sell
Slide 15: Assets held for sale: Schäfer and Selzer
ASSETS HELD FOR SALE: SCHÄFER AND SELZER STATUS OF M&A PROCESSES Structured M&A processes started for both companies M&A processes pushed forward with high intensity Non-binding offers received for both companies Selected bidders currently evaluating the target companies Evaluation of conf
Slide 16: INDUS in figures
INDUS IN FIGURES CONSOLIDATED STATEMENT OF INCOME SALES* EBIT BEFORE IMPAIRMENT* EBIT MARGIN BEFORE IMPAIRMENT* (in EUR million) (in EUR million) (in %) +10.4% 1,804.1 1,633.5 -0.5pp +5,0% 10.3 9.8 168,1 176,5 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 * from continuing operations, 2021 figures
Slide 17: Construction/Infrastructure
CONSTRUCTION/INFRASTRUCTURE SALES UP SIGNIFICANTLY, EBIT BEFORE IMPAIRMENT IN TARGET RANGE Clear organic growth in sales of 5.0% and inorganic growth in sales of 9.1% SECTOR ENVIRONMENT IN 2022 2.4% increase in operating income before impairment The construction industry in Germany, EBIT mar
Slide 18: Automotive Technology
AUTOMOTIVE TECHNOLOGY SALES AND EBIT DOWN SCHÄFER, SELZER and SMA were assigned to discontinued operations, SECTOR ENVIRONMENT IN 2022 AURORA, BILSTEIN & SIEKERMANN, IPETRONIK and SITEK to continuing operations Production volumes recovered Decrease in sales of 17.9% exclusively due to sale of
Slide 19: Engineering
ENGINEERING SALES UP SIGNIFICANTLY, EBIT BEFORE IMPAIRMENT ABOVE TARGET RANGE Sales +21.2%; inorganic growth from the acquisitions of TECALEMIT Inc. and FLACO in 2021 and from the SECTOR ENVIRONMENT IN 2022 acquisitions of HEIBER + SCHROEDER and HELD in 2022, as well as broad-based organic growth
Slide 20: Medical Engineering/Life Science
MEDICAL ENGINEERING/LIFE SCIENCE RISING COSTS AND SITE CONSOLIDATION HAVE NEGATIVE IMPACT ON EBIT* 3.3% rise in sales primarily due to good development in the field of optical lenses and rehabilitation SECTOR ENVIRONMENT 2022 technology Coronavirus crisis heavily impacted the Expenses related
Slide 21: Metals Technology
METALS TECHNOLOGY INCREASE IN SALES AND INCOME Increase in sales of +9.5% despite deconsolidation of BACHER (approx. EUR 10 million in sales, SECTOR ENVIRONMENT IN 2022 corresponding to approx. -2.4%) and excluding acquisitions Metal processing industry in 2022 Positive effects on earnings due
Slide 22: Revenue by segment
REVENUE BY SEGMENT INCREASE IN SALES IN FOUR OUT OF FIVE SEGMENTS MEDICAL CONSTRUCTION/ AUTOMOTIVE ENGINEERING/ INFRASTRUCTURE TECHNOLOGY* ENGINEERING LIFE SCIENCE METALS TECHNOLOGY +14.1% +21.2% +9.5% Sales (in EUR million) 515.2 -17.9% 531.7 460.3 451.6 438.7 +3.3% 420.4 173.8 142.7 148.7 153.6 FY
Slide 23: Financial performance of the group
FINANCIAL PERFORMANCE OF THE GROUP SALES +10.4% SALES DEVELOPMENT* (in EUR million) Increase in sales in four segments +10.4% Organic growth in sales of 8.3% Inorganic growth in sales of 2.1% Positive sales development in the segments of Engineering, Construction/Infrastructure and Metals Te
Slide 24: EBIT before impairment per segment
EBIT BEFORE IMPAIRMENT PER SEGMENT CLEAR IMPROVEMENT IN EBIT IN ENGINEERING AND METALS TECHNOLOGY MEDICAL CONSTRUCTION/ AUTOMOTIVE ENGINEERING/ INFRASTRUCTURE TECHNOLOGY* ENGINEERING LIFE SCIENCE METALS TECHNOLOGY EBIT before impairment (in EUR million) +2.4% +14.5% +23.3% -28.3% +75.6% 70.6 72.3 56
Slide 25: Financial performance 2022: EBIT and EBITDA
FINANCIAL PERFORMANCE 2022 EBIT AND EBITDA * OPERATING PERFORMANCE (in EUR million) 251.2 EBITDA 262.5 Increase in EBITDA of +4.5% due to good operating 2.5 42.8 performance of continuing operations 83.1 86.0 165.6 133.7 10.1 7.4 2021 2022 Impairment (in EUR million) Depreciation/amortization (in
Slide 26: Depreciation/amortization and impairment
FINANCIAL PERFORMANCE 2022 DEPRECIATION/AMORTIZATION ON PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL* DEPRECIATION/AMORTIZATION (in EUR million) Depreciation/amortization slightly up on previous year at 42.8 EUR 86.0 million (PY: EUR 83.1 million) 2.5 Annual impairment test on S
Slide 27: Working capital and cash flow
WORKING CAPITAL AND CASH FLOW INCREASE IN WORKING CAPITAL REDUCES CASH FLOW WORKING CAPITAL DEVELOPMENT (in EUR million) +52.8 Change in working capital in the statement of financial position: EUR +52.8 million Cash effect of working capital change: EUR -68.9 million (previous year: EUR -45.9 mi
Slide 28: Investments
FINANCIAL PERFORMANCE 2022 INVESTMENTS* INVESTMENTS (2021–2022) in EUR million Total investments of EUR 113.3 million (previous year: EUR 119.9 million) -5.5% down on previous year 67.3 58.8 Investments in property, plant and equipment on par with previous year, focus on technical equipment and
Slide 29: Consolidated statement of cash flows
FINANCIAL PERFORMANCE 2022 CONSOLIDATED STATEMENT OF CASH FLOWS CASH FLOW (in EUR million) Cash at the beginning of the period 136,3 EBITDA* 262,5 Other non-cash transactions -7,9 Increase in Working Capital -68,9 Income taxes paid -48,6 Operating cash flow 137,1 Net interest paid -20,8 Cash flow fr
Slide 30: INDUS in figures: key figures FY 2022
INDUS IN FIGURES KEY FIGURES FY 2022 OPERATING CASH FLOW* NET DEBT EQUITY RATIO (in EUR million) (in EUR million) (in %) +17.7% 593.6 504.2 -22.8% -6.1pp 177.7 137.1 42.4 36.3 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 * from continuing operations, 2021 figures adjusted retroactively 30
Slide 31: Equity ratio and net debt/EBITDA
FINANCIAL PERFORMANCE OF THE GROUP EQUITY RATIO OF 36.3% NET DEBT IN RELATION TO EBITDA (in EUR million) Increase in net debt of 17.7% to EUR 593.5 million 2.3 2.0 Net debt/EBITDA of continuing operations of 2.3 years in comparison with 2.0 years in previous year 251.2 262.5 2021 2022 EBITDA (in
Slide 32: Introduction of additional key figure: free cash flow
INTRODUCTION OF ADDITIONAL KEY FIGURE FREE CASH FLOW Introduction of free cash flow as an additional management in EUR million FY 2022 FY 2021 variable improves transparency regarding the funds freely available to the Group Operating cash flow from continuing operations 137.1 177.7 Free cash flo
Slide 33: Proposed dividend for 2022
PROPOSED DIVIDEND FOR 2022 A DECISION BASED ON STRONG CONFIDENCE FOR 2023 AND FOLLOWING YEARS Regular dividend payments to our shareholders part of INDUS’ DNA Strong confidence with regard to development in 2023 and following years, INDUS to return to old strengths Therefore, proposal to pay a
Slide 34: Dividend history
DIVIDEND HISTORY INDUS HOLDING AG’S DIVIDEND POLICY AND DIVIDEND HISTORY 3.8% 79.0% 3.6% 3.2% 60.0% 2.6% 2.5% 2.5% Avg. 51.9% 2.9% 48.1% 2.1% 42.7% 43.9% Avg. €1.11 24.6% 77.2 83.5 76.3 1.35 1.50 1.50 54.4 1.05 35.8 0.80 0.80 0.80 79.6 27.2 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020
Slide 35: Q&A
Q&A welcome 35
Slide 36: Agenda
AGENDA 1 WELCOME 2 INDUS DNA 3 FINANCIAL RESULTS 2022 4 STRIVING FOR SUSTAINABILITY 5 PARKOUR PERFORM 6 NEW SEGMENTS 7 OUR GROWTH TRAJECTORY 8 FAREWELL 9 APPENDIX 36
Slide 37: Striving for sustainability
#4 STRIVING FOR SUSTAINABILITY Becoming climate neutral with targeted support from the sustainability development bank Progress management with a clear system for key figures Sustainability components form part of compensation paid to the Board of Management 37
Slide 38: Deep dive: Striving for sustainability
DEEP DIVE: STRIVING FOR SUSTAINABILITY STRATEGIC INITIATIVE WITHIN PARKOUR PERFORM SUSTAINABILITY KNOWLEDGE DEVELOPMENT BANK NETWORK STRATEGIC PROJECTS Potential analyses at Promoting environmental Sharing experience and Developing sustainability portfolio companies efficiency measures that
Slide 39: Striving for sustainability: important KPIs
STRIVING FOR SUSTAINABILITY: IMPORTANT KPIS GHG EMISSION REDUCTION INCORPORATED INTO BOARD OF MANAGEMENT COMPENSATION SCOPE 1+2 GREENHOUSE GAS EMISSIONS (t CO2eq / EUR million GAV net) Target for reducing emissions met by a wide margin in 2022 102 94 Emission reduction target is a key sustainabi
Slide 40: Striving for sustainability within the group
STRIVING FOR SUSTAINABILITY WITHIN THE GROUP SUSTAINABILITY DEVELOPMENT BANK TARGETS Promoting environmental efficiency measures that make a significant contribution to reducing emissions and conserving resources Inspired by the success of the innovation development bank PROJECTS VULKAN’S ADIABA
Slide 41: Circular economy megatrend: resource conservation
CIRCULAR ECONOMY OBUK AND WIRUS Construction industry is a major lever for the circular economy as it is one of the most resource-intensive sectors of the economy WIRUS: Recycling used windows, doors and roller blinds Profile offcuts are collected and recycled New windows and doors are made
Slide 42: Striving for sustainability: EU taxonomy
STRIVING FOR SUSTAINABILITY: EU TAXONOMY IDENTIFYING EU TAXONOMY-ALIGNED AND TAXONOMY-ELIGIBLE TURNOVER BUILDING SUSTAINABLY Premium segment Heat pumps High-quality aluminum and windows and doors plastic doors PORTFOLIO COMPANIES WITH MAJORITY OF EU TAXONOMY-ALIGNED AND TAXONOMY-ELIGIBLE TURNOVER TO
Slide 43: Commitment to sustainability in a variety of areas
#2 SUSTA[IN] COMMITMENT TO SUSTAINABILITY IN A VARIETY OF AREAS HAUFF-TECHNIK WASH PROJECTS The “VIVA CON AGUA” initiative is committed to ensuring access to clean drinking water. In 2021, AURORA HAUFF-Technik donated one euro to global water projects for every LESS PACKAGING building package sold A
Slide 44: ISS ESG rating
ISS ESG RATING ENSURES FAVORABLE FINANCING CONDITIONS Top position in the ISS ESG rating for the seventh 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 45: Lunch break or guided tour
Let‘s have a LUNCH BREAK OR GUIDED TOUR 45
Slide 46: Agenda
AGENDA 1 WELCOME 2 INDUS DNA 3 FINANCIAL RESULTS 2022 4 STRIVING FOR SUSTAINABILITY 5 PARKOUR PERFORM 6 NEW SEGMENTS 7 OUR GROWTH TRAJECTORY 8 FAREWELL 9 APPENDIX 46
Slide 47: PARKOUR becomes PARKOUR perform
PARKOUR Becomes PARKOUR perform FOCUS ON 2025 TARGET ACHIEVEMENT 1 2 3 4 STRENGTHENING DRIVING IMPROVING STRIVING FOR THE PORTFOLIO INNOVATION PERFORMANCE SUSTAINABILITY STRUCTURE 47
Slide 48: Clearing out and starting fresh at INDUS
OVERVIEW LOOKING TO 2025: WE’RE REFINING OUR STRATEGY WE WILL... ... position ourselves as value-oriented holding company with clearly defined technological focal points CLEARING ... focus on three promising core segments as a Group ... free up valuable resources and management capacities for develo
Slide 49: PARKOUR perform – an overview
PARKOUR perform – AN OVERVIEW THREE PRIMARY TARGETS MORE FOCUS ON A CLEARLY STRUCTURED SUPPORTING PORTFOLIO FUTURE FIELDS PORTFOLIO COMPANIES MORE CLOSELY Megatrends Focus Segment management Aligning segments with Clearing out of the Segments managed by members of relevant future fields Automo
Slide 50: Agenda
AGENDA 1 WELCOME 2 INDUS DNA 3 FINANCIAL RESULTS 2022 4 STRIVING FOR SUSTAINABILITY 5 PARKOUR PERFORM 6 NEW SEGMENTS 7 OUR GROWTH TRAJECTORY 8 FAREWELL 9 APPENDIX 50
Slide 51: Clear technological focal points through new segmentation
CLEAR TECHNOLOGICAL FOCAL POINTS THROUGH NEW SEGMENTATION 51
Slide 52: Megatrends and future fields set the path
MEGATRENDS AND FUTURE FIELDS SET THE PATH 52
Slide 53: New segment structure
NEW SEGMENT STRUCTURE WE ARE BECOMING LEANER AND MORE FOCUSED We now have three core segments with a clear focus on future fields derived from the megatrends of our time We drive development in our segments with our expert knowledge and ENGINEERING through targeted acquisitions We focus on hig
Slide 54: New segment structure: allocating portfolio companies
NEW SEGMENT STRUCTURE ALLOCATING THE PORTFOLIO COMPANIES TO THREE NEW SEGMENTS ENGINEERING INFRASTRUCTURE MATERIALS 16 portfolio companies 14 portfolio companies 14 portfolio companies Sales: EUR 581 million Sales: EUR 586 million Sales: EUR 637 million EBIT*: EUR 61 million EBIT*: EUR 64 million EB
Slide 55: New segment management at a glance
NEW SEGMENT MANAGEMENT AT A GLANCE DOUBLE ASSIGNMENT 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 55
Slide 56: Segment management: focus for 2023
SEGMENT MANAGEMENT FOCUS FOR 2023 Major goals and tasks for segment management in 2023 Full adaption to new segment management principles and major KPIs (incl. new KPI “Free cash flow”) Implementation of changes in budgeting processes and application of a stronger top-down approach with regard t
Slide 57: New segment structure: Engineering
NEW SEGMENT STRUCTURE ENGINEERING THIS SEGMENT POOLS COMPANIES FROM THE FIELDS OF... ENGINEERING Automation / robotics Sensor and measuring technology Specialized machinery and equipment MEGATRENDS (e. g. energy, food and packaging technology) Digitalization Sustainability “With our unique
Slide 58: Fingerprint of segment Engineering
FINGERPRINT OF SEGMENT ENGINEERING WHERE WE COME FROM Looking back 2015 to 2022 (pro forma analysis) KPIs for segment Engineering Significant organic and inorganic growth of turnover EBIT before Sales EBIT margin impairment above GDP growth (at actual prices) in EUR million in EUR million in % 202
Slide 59: Segment Engineering: Horngroup growth story
SEGMENT ENGINEERING A SUCCESSFUL GROWTH STORY: HORNGROUP 2nd Growth Phase Focus on Implementation of Niche Market Strategies Consolidation Phase and Product Portfolio Management 68 CAGR 2011-22: Focus on Product Development 15.5 % 1st Growth Phase and Margin Improvement Focus on International Expans
Slide 60: Strategic initiative Improving Performance: market excellence
STRATEGIC INITIATIVE “IMPROVING PERFORMANCE” MARKET EXCELLENCE FRAMEWORK INDUS supports its portfolio companies to optimize their market strategies and market cultivation Business Plan & Goals Strategy Market & Segmentation Market Positioning Product Pricing Sales Market Organisation Approach Portfo
Slide 61: Strategic initiative Improving Performance: operational excellence
STRATEGIC INITIATIVE “IMPROVING PERFORMANCE” OPERATIONAL EXCELLENCE FRAMEWORK INDUS supports its portfolio companies on their way to operational excellence Target Set Up Order Processing & Make or Buy Philosophy Production Strategy Degree of Automation IT Systems Production Plan- Process Efficiency
Slide 62: Deep dive: innovation in Engineering, GSR hydrogen valves
DEEP DIVE: INNOVATION IN THE ENGINEERING SEGMENT GSR: HYDROGEN VALVES Project funded by innovation development bank as part of “Driving Innovation” strategic initiative High-pressure solenoid valve for hydrogen refueling Up to 1,050 bar Meets high IECEX standards (explosion protection) Strat
Slide 63: Outlook 2023: Segment Engineering
OUTLOOK 2023 GUIDANCE FOR SEGMENT ENGINEERING Profitable growth path to be continued with special attention on EBIT margin quality Overall positive outlook to 2023; earnings expectations for 2023 positive but at a few portfolio companies a little more cautious Clear sales increase and good ear
Slide 64: New segment structure: Infrastructure
NEW SEGMENT STRUCTURE INFRASTRUCTURE THIS SEGMENT POOLS COMPANIES FROM THE FIELDS OF... INFRASTRUCTURE Construction and building technology Telecommunications infrastructure Climate control technology MEGATRENDS Mobility and urbanization Digitalization Sustainability “In an increasingly
Slide 65: Fingerprint of segment Infrastructure
FINGERPRINT OF SEGMENT INFRASTRUCTURE WHERE WE COME FROM Looking back 2015 to 2022 (pro forma analysis) KPIs for segment Infrastructure Significant organic and inorganic growth of turnover EBIT before Sales EBIT margin impairment well above GDP growth (at actual prices) in EUR million in EUR milli
Slide 66: Segment Infrastructure: Hauff-Technik growth story
SEGMENT INFRASTRUCTURE A SUCCESSFUL GROWTH STORY: HAUFF-TECHNIK DIGITALIZATION NEW BUILDING INTERNATIONALIZATION 2014 CAGR On the market in over 40 countries with 2015-2022: more than 500 employees. 110 12.7 % 100 90 INDUSTRIALIZATION 80 ADD-ON ACQUISITIONS Sales in EUR million In 2016 GRIDCOM becom
Slide 67: Deep dive: Hauff-Technik fiber-to-the-home
DEEP DIVE: INNOVATION IN THE INFRASTRUCTURE SEGMENT HAUFF-TECHNIK: FIBER-TO-THE-HOME Specialist for fiber-to-the-home components Multi-functional and fully integrated sealing and feed-through solutions for diverse users Highly advanced installation systems for securing stable and fast Internet
Slide 68: Deep dive: Ancotech, Betomax and Schuster BIM
DEEP DIVE: INNOVATION IN THE INFRASTRUCTURE SEGMENT ANCOTECH, BETOMAX AND SCHUSTER BIM (Building Information Modeling) A central, digital 3D model with all relevant building data This enables optimum collaboration for all involved Construction project can be constantly reviewed in terms of c
Slide 69: Innovation development bank
INNOVATION DEVELOPMENT BANK SUPPORTING INNOVATION PROJECTS IN THE PORTFOLIO COMPANIES New projects expected in 2023 Established means for supporting innovation activities 60 Regular completion of existing projects since 2019 50 Number of projects 40 Noticeable increase in innovation activities
Slide 70: Focus on future fields and technologies
FOCUS ON FUTURE FIELDS AND TECHNOLOGIES EXPANSION OF KNOWLEDGE MANAGEMENT IN THE PORTFOLIO COMPANIES SUSTAINABLE CONSTRUCTION Group-wide topical working groups ̄ Sharing experience and knowledge within the Group DIGITA SUSTAI HY Sharing expert knowledge ̄ Targeted expansion of knowledge in futur
Slide 71: Working group: sustainable construction
WORKING GROUP SUSTAINABLE CONSTRUCTION – LAUNCH MAY 2022 NETWORK 14 portfolio companies at launch event EXPERT KNOWLEDGE Experts provide food for thought Ideas workshop Finding inspiration for new REMKO: HEAT PUMPS solutions Energy efficiency and WHFKQRORJ\̄PHJDWUHQGV picked up in working groups 71
Slide 72: Outlook 2023: Segment Infrastructure
OUTLOOK 2023 GUIDANCE FOR SEGMENT INFRASTRUCTURE Outlook remains positive, despite slow down of new construction already materialized, slight increase in sales Turnover EBIT EBIT margin anticipated in EUR million in EUR million in % Strong push for energetic refurbishment of existing 2021 515.3
Slide 73: New segment structure: Materials
NEW SEGMENT STRUCTURE MATERIALS THIS SEGMENT POOLS COMPANIES FROM THE FIELDS OF... MATERIALS Metal forming and processing Metal creation (carbides and blasting agents) MEGATRENDS Medical consumables and aids Sustainability Mobility and urbanization Demographics and health “In addition to
Slide 74: Fingerprint of segment Materials
FINGERPRINT OF SEGMENT MATERIALS WHERE WE COME FROM Looking back 2015 to 2022 (pro forma analysis) KPIs for segment Materials Organic growth of turnover in line with Turnover EBIT before EBIT margin impairment GDP growth (at actual prices) in EUR million in EUR million in % CAGR sales Materials se
Slide 75: Segment Materials: BETEK Group growth story
SEGMENT MATERIALS A SUCCESSFUL ORGANIC GROWTH STORY: BETEK GROUP Focus on Innovation and Sustainability Multiple Innovation Projects: International Expansion new Tungsten carbide alloys Sales growth in China to with significantly increased Early Stage Growth Phase wear resistance, recycling of 290 E
Slide 76: BETEK: carbide recycling
INNOVATION IN THE ENGINEERING SEGMENT BETEK: CARBIDE RECYCLING Project funded by innovation development bank as part of “Driving Innovation” strategic initiative Newly developed recycling process to recycle tungsten carbide Recycling process for road cutting tools In 2022, around 40 tons recov
Slide 77: Outlook 2023: Segment Materials
OUTLOOK 2023 GUIDANCE FOR SEGMENT MATERIALS Outlook for 2023 dominated by rising material prices Performance 2023 burdened by strongly rising cost of Turnover EBIT EBIT margin energy and the disputed possible collection of anti- in EUR million in EUR million in % dumping tariffs by the EU for im
Slide 78: Q&A
Q&A welcome 78
Slide 79: Agenda
AGENDA 1 WELCOME 2 INDUS DNA 3 FINANCIAL RESULTS 2022 4 STRIVING FOR SUSTAINABILITY 5 PARKOUR PERFORM 6 NEW SEGMENTS 7 OUR GROWTH TRAJECTORY 8 FAREWELL 9 APPENDIX 79
Slide 80: Economic environment – outlook for 2023
ECONOMIC ENVIRONMENT – OUTLOOK FOR 2023 FURTHER UNCERTAINTIES IMPACT ECONOMY Downturn in 2022 replaced with optimism and slight upturn at beginning of 2023 Despite signs of easing, inflation remains high Considerable cost pressure, especially from salary increases and impact of energy cost inc
Slide 81: Guidance 2023 (for continued operations)
GUIDANCE 2023 (FOR CONTINUED OPERATIONS) INCREASING SALES AND EBIT EXPECTED FOR 2023 GROUP Guidance 2022 2023 Sales (in EUR million) 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 Cashflow (in EUR million) 101.5 >100 Acquisitions 2 2 Investments in property
Slide 82: Continued operations (pro forma analysis)
CONTINUED OPERATIONS (PRO FORMA ANALYSIS) OUR TRACK TO 2025 - LOOKING BACK 2015 TO 2022 Pro Forma analysis of sales with third parties based on portfolio composition for continued operations as it was at the beginning of 2023 CAGR sales continued operations vs. GDP (in actual prices) Comparison
Slide 83: Looking forward to 2025 – drivers for growth
CONTINUED OPERATIONS LOOKING FORWARD TO 2025 – DRIVERS FOR GROWTH Organic sales growth - GDP (in actual prices) 4 % in 2023 - Segment management driving growth 3 % in 2024 - GDP growth (in actual prices) significant due to inflation - Organic sales growth twice GDP growth Margin improvement through
Slide 84: Looking forward to 2025 – sales and EBITDA
CONTINUED OPERATIONS LOOKING FORWARD TO 2025 – OUR GROWTH TRAJECTORY Total Sales (in million EUR) - Solid sales growth expected until 2025 2400 - Organic growth contributing around 70 % and 2200 inorganic growth around 30 % 2000 - In usual economic cycles INDUS will be able 1800 2022 2023 2024 2025
Slide 85: Looking forward to 2025 – EBIT and EBIT margin
CONTINUED OPERATIONS LOOKING FORWARD TO 2025 – OUR GROWTH TRAJECTORY EBIT (in million EUR) 250 - Growing EBIT in line with growth of EBITDA 210 - Growing contribution from acquisitions to EBIT 170 (around 11 million in 2025) 130 2022 2023 2024 2025 EBIT margin (in %) - EBIT margin of 10 % achievable
Slide 86: Introduction of additional KPI: free cash flow
INTRODUCTION OF ADDITIONAL KEY PERFORMANCE INDICATOR FREE CASH FLOW OPERATING CASH FLOW Introduction of free cash flow as an additional key performance indicator improves transparency regarding the funds freely available to the Group Cash outflow from investments in - property, plant and equipment
Slide 87: Looking forward to 2025 – free cash flow
CONTINUED OPERATIONS LOOKING FORWARD TO 2025 – OUR GROWTH TRAJECTORY - Stable free cash flow from 2022 to 2023 because of Free Cash Flow (in million EUR) unchanged working capital 170 - Solid growth of free cash flow until 2025 130 to well above EUR 100 million 90 - Creates possibility to 2022 2023
Slide 88: Free cash flow creates room for acquisitions
FREE CASH FLOW CREATES ROOM FOR ACQUISITIONS AVERAGE OF EUR 50 MILLION TO EUR 60 MILLION FOR ACQUISITIONS Acquisitions in the future fields relevant to our industrial sectors Focus on highly specialized industrial technology in attractive market niches Acquisitions both at portfolio level and
Slide 89: PARKOUR perform – target achievement in six steps
PARKOUR perform – TARGET ACHIEVEMENT IN SIX STEPS FOCUS ON 2025 TARGET ACHIEVEMENT Megatrends and innovations determine the PORTFOLIO STRENGTHENING performance of the portfolio companies Organic growth supported by regular SALES SIGNIFICANTLY >EUR 2 BILLION acquisitions EBIT MARGIN ABOVE 10% Long-te
Slide 90: Q&A
Q&A welcome 90
Slide 91: Agenda
AGENDA 1 WELCOME 2 INDUS DNA 3 FINANCIAL RESULTS 2022 4 STRIVING FOR SUSTAINABILITY 5 PARKOUR PERFORM 6 NEW SEGMENTS 7 OUR GROWTH TRAJECTORY 8 FAREWELL 9 APPENDIX 91
Slide 92: INDUS share: what makes it attractive
INDUS SHARE WHAT MAKES INDUS SHARES ATTRACTIVE OUR PORTFOLIO ... ... is focused on technology- ... is diversified and ... is actively developed oriented industrial concentrated on clearly further, growing profitably, companies in the SME sector defined future fields and enables regular payment of th
Slide 93: Farewell
... FAREWELL 7
Slide 94: Agenda
AGENDA 1 WELCOME 2 INDUS DNA 3 FINANCIAL RESULTS 2022 4 STRIVING FOR SUSTAINABILITY 5 PARKOUR PERFORM 6 NEW SEGMENTS 7 OUR GROWTH TRAJECTORY 8 FAREWELL 9 APPENDIX 94
Slide 95: 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 – Dec. 31 BAYERN 17.7% Share capital EUR 69.9 million H. J. SELZER
Slide 96: Appendix: Engineering quarterly overview
APPENDIX OVERVIEW PER NEW SEGMENT FOR 2021 AND PER QUARTER IN 2022 ENGINEERING 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 (in EUR million) Revenue with third parties 486.9 121.1 149.9 144.9 167.3 583.2 EBITDA 82.3 21.1 18.5 23.1 29.9 92.6 EBITDA margin (in %) 16.9 17.4 12.4 15.9 17.9 15.9 Depreciatio
Slide 97: Appendix: Infrastructure quarterly overview
APPENDIX OVERVIEW PER NEW SEGMENT FOR 2021 AND PER QUARTER IN 2022 INFRASTRUCTURE 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 (in EUR million) Revenue with third parties 515.3 139.5 154.5 152.5 139.5 586.0 EBITDA 89.3 22.1 25.4 26.1 14.9 88.5 EBITDA margin (in %) 17.3 15.8 16.5 17.1 10.7 15.1 Deprecia
Slide 98: Appendix: Materials quarterly overview
APPENDIX OVERVIEW PER NEW SEGMENT FOR 2021 AND PER QUARTER IN 2022 MATERIALS 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 (in EUR million) Revenue with third parties 586.5 156.6 165.8 162.1 152.4 636.9 EBITDA 86.4 21.0 25.9 25.5 20.1 92.5 EBITDA margin (in %) 14.7 13.4 15.6 15.7 13.2 14.5 Depreciation
Slide 99: Deep dive: Strategic initiative Improving Performance
DEEP DIVE: STRATEGIC INITIATIVE “IMPROVING PERFORMANCE” FULL SCOPE VIEW ON PROCESS AND IT LANDSCAPE FOR IDEAL OPERATIONAL CONSISTENCY Process View Process Analysis Roles/ Rights Lean Management Shopfloor Management Value Stream Design Target Processes Change Management Requirement Requirement IT Sys