Slide 1: Publication of Financial Results for Fiscal Year 2017
LIN] spocrieyg Ss ae: Diisseldorf and PUBLICATION OF FINANCIAL RESULTS Frankfurt/Main, 27 and 28 March 2018 FOR FISCAL YEAR 2017
Slide 2: Introduction of Axel Meyer
1. INTRODUCTON OF AXEL MEYER STRATEGIC REPORT 2017 FISCAL YEAR 2017 SHARE AND DIVIDEND OUTLOOK 2018 . APPENDIX [INDUS]
Slide 3: Axel Meyer fourth Board member since 1 October 2017
INDUS Holding AG Axel Meyer fourth Board member since 1 October 2017 3
Slide 4: Introduction of Axel Meyer
INTRODUCTION OF AXEL MEYER - STRATEGIC REPORT 2017 . FISCAL YEAR 2017 . SHARE AND DIVIDEND . OUTLOOK 2018 . APPENDIX [INDUS]
Slide 5: INDUS business model: We are passionate about SMEs
INDUS business model We are passionate about SMEs * As of 1 October 2017, the Group has 45 instead of 46 investments. This is the result of the integration of the FICHTHORN investment in the SELZER Group. 5
Slide 6: 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 6
Slide 7: 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 8: Growth with COMPASS 2020
INDUS business model Growth with COMPASS 2020 8
Slide 9: COMPASS 2020 – Investments: Strengthening of portfolio
COMPASS 2020 – Investments Portfolio continues to be expanded and strengthened Strengthening of portfolio TR Metalltechnik OFA acquires WIESAUPLAST- trading PMC de México* company for medical aids Growth acquisitions * Acquisition of the remaining shares (55%) 9
Slide 10: Growth acquisitions 2017
COMPASS 2020 – Investments Growth acquisitions 2017 Supplier of measurement and test systems for vibration control and analysis for the automotive, the electrical and electronics equipment industry and the aerospace industry Sales: approx. EUR 11 million Employees: 63 Locations: Hanover (DE), Farnha
Slide 11: Growth acquisitions 2017
COMPASS 2020 – Investments Growth acquisitions 2017 NC rotary tables and NC rotary tilt tables for high- precision and technology- intensive positioning of workpieces at high speeds Sales: approx. EUR 24 million Empleyees: approx. 170 Locations: Remscheid (DE), Morbach (DE), Grand Rapids (US), Taipe
Slide 12: Strategic acquisitions 2018
COMPASS 2020 – Investments Strategic acquisitions 2018 acquires electronics acquires the activities of specialist as a strategic addition a southern German trading company for medical aids Customized electronic control as a strategic addition components for applications in the automotive, lighting a
Slide 13: COMPASS 2020 – Innovation
COMPASS 2020 – Innovation Expanded focus of the strategic component 13
Slide 14: Innovation development bank
COMPASS 2020 – Innovation Innovation development bank new Technology existing existing new Markets 14
Slide 15: COMPASS 2020 – Internationalization
COMPASS 2020 – Internationalization Strengthening the portfolio through internationalization 15
Slide 16: Our global investments: Highlights 2017/2018
COMPASS 2020 – Internationalization Our global investments: Highlights 2017/2018 WIESAUPLAST PEISELER establishes establishes new local subsidiary in WIESAUPLAST USA Taiwan HAUFF-TECHNIK opens M+P and PEISELER, new representative office two newly acquired with SVT Brandschutz in entities, have a US
Slide 17: Portfolio companies present in 30 countries
COMPASS 2020 – Internationalization Portfolio companies meanwhile have a presence in 30 countries 815.5 million 7,487 376.4 million 1,411 448.7 million 1,312 Sales and employee figures as at 12/2017, locations as at 03/2018, Europe = EU and Switzerland 17
Slide 18: Sustainability remains integral component in 2017
INDUS business model Sustainability remains integral component in 2017 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 2017 18
Slide 19: [INDUS]
[INDUS] INTRODUCTION OF AXEL MEYER . STRATEGIC REPORT 2017 - FISCAL YEAR 2017 . SHARE AND DIVIDEND . OUTLOOK 2018 . APPENDIX 19
Slide 20: Another successful year for INDUS
Fiscal year 2017 Another successful year for INDUS Sales revenues and EBIT again at record level; +13.6% revenue growth (thereof 10.5% organic); EBIT growth (+5.5%) dampened in particular by two repositionings Excellent to very stable earnings contributions by Construction/Infrastructure, Engineerin
Slide 21: Group targets for 2017
Fiscal year 2017 Group targets for 2017 Sales > EUR 1.5 billlion EUR 1,640.6 million Better than (+13.6%; expected organic growth 10.5%) EBIT EUR 145 - 150 million EUR 152.9 million Fully achieved Acquisitions 2 growth acquisitions 2 growth acquisitions Fully achieved Investments in property, plant,
Slide 22: Sales revenues and earnings
Fiscal year 2017 Sales revenues and earnings Thereof 10.5% organic growth EBIT margin of 9.3% Increased Adj. EBIT margin of 10.0% Increased interest incl. repositionings and tax expenses expenses exchange losses (in EUR milions) 22
Slide 23: Sales revenues hit new records
Fiscal year 2017 Sales revenues hit new records Good start to the year with quarterly sales of EUR 381.0 million (+14.5% yoy) Upward trend continued with 1,640.6 quarterly sales of EUR 422.5 million 1,444.3 (+10.6% yoy) 1,388.9 1,255.7 Continued good economy 1,186.8 supports quarterly sales of EUR 4
Slide 24: Regional sales distribution
Fiscal year 2017 Regional sales distribution 24
Slide 25: Earnings
Fiscal year 2017 Earnings 180 20.0% At 5.5%, EBIT growth is dispropor- 160 152.9 18.0% 144.9 tionately lower than 13.6% increase in 140 118.6 127.2 136.3 16.0% 14.0% sales; EBIT margin at 9.3% 120 12.0% 100 10.0% 80 EBT growth of 4.7% 60 10.0% 10.1% 9.8% 10.0% 9.3% 8.0% 6.0% 40 4.0% EAT growth of 3.
Slide 26: Reconciliation to adj. operating result
Fiscal year 2017 Reconciliation to adj. operating result (in EUR milions) 163.7 155.4 * 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 inventory assets/or
Slide 27: Investment and amortizations
Fiscal year 2017 Investment and amortizations Total investments at EUR 111.4 million (+7.2% yoy) still at high level At EUR 32.4 million (+8.4% yoy), net cash used for acquisitions stays at high level of 79.0 the previous years 73.0 70.0 Investments in property, plant and 65.8 62.4 equipment up by 1
Slide 28: Asset and capital structure
Fiscal year 2017 Asset and capital structure Equity ratio down to 40.8% Net-debt-to equity ratio (gearing) at Total assets 1,653.2 1,521.6 8.6 prior year level Equity 673.8 644.6 4.5 Equity ratio (in %) 40.8 42.4 -1.6 ppt Net debt 398.9 376.6 5.9 Debt repayment period stays at Net debt/EBITDA 1.9 1.
Slide 29: Financing
Fiscal year 2017 Financing Continued comfortable financial position and comprehensive bank commitments enable flexible investments 2013 2014 2015 2016 2017 INDUS primarily relies on long-term bank loans and promissory note loans Financial liabilities climb moderately to EUR 534.8 million (+6.2% yoy)
Slide 30: Consolidated statement of cash flows
Fiscal year 2017 Consolidated statement of cash flows 01.01.2017 – 31.12.2017 145.0 -21.0 124.0 -110.0 -3.9 -1.4 135.9 127.2 Interest paid down 10.3% on Slightly above prior previous year due to rolling year level; cash used Reduction by repayment of financial liabilities for acquisition of M+P 73.8
Slide 31: Segment targets for 2017
Fiscal year 2017 Segment targets for 2017 400 450 394.1 10% 400 375.1 280 450 330.4 400 372.2 400 385.6 350 350 15% 305.9 230 344.4 300 274.5 350 300 14.3% 350 15.0% 300 5.4% 300 250 250 180 147.0 155.2 8.7% 10% 250 13.5% 250 200 14.3% 3.7% 5% 200 6.3% 200 130 13.7% 200 150 150 150 13.4% 150 100 80
Slide 32: Income contributions of the segments
Fiscal year 2017 Income contributions of the segments 32
Slide 33: Construction/Infrastructure segment
Fiscal year 2017 Construction/Infrastructure segment (in EUR millions/%) Construction boom and high public spending propensity increase demand in the segment Sales revenues and EBIT each grow by over 20%; EBIT margin again exceeded All portfolio companies contribute to growth; segment profitability
Slide 34: Automotive Technology segment
Fiscal year 2017 Automotive Technology segment (in EUR millions/%) Framework conditions remain difficult: Emissions and cartel scandal Pressure from OEMs (savings, margin pressure) Restraint in engineering sector Technological change in automotive sector Additional burdens: Repositioning of a portfo
Slide 35: Engineering segment
Fiscal year 2017 Engineering segment (in EUR millions/%) Increase in sales revenues and earnings to record level supported by nearly all portfolio companies Major contract for inert gas systems and new acquisitions M+P and PEISELER make positive contributions to sales revenues Successes achieved by
Slide 36: Medical Engineering/Life Science segment
Fiscal year 2017 Medical Engineering/Life Science segment (in EUR millions/%) On balance, operating activities improved in the course of the fiscal year Revenue and earnings growth supported by all portfolio companies At 3.0%, earnings growth is slightly lower in relation to sales revenues: At 9.8%,
Slide 37: Metals Technology segment
Fiscal year 2017 Metals Technology segment (in EUR millions/%) Companies benefit from good economic activity Pleasant 12.0% increase in sales revenues generated by the larger portfolio companies Other portfolio companies (excl. repositioning) achieve good to very good results EBIT declines by EUR 5.
Slide 38: INTRODUCTION OF AXEL MEYER
INTRODUCTION OF AXEL MEYER . STRATEGIC REPORT 2017 . FISCAL YEAR 2017 - SHARE AND DIVIDEND . OUTLOOK 2018 . APPENDIX [INDUS] 38
Slide 39: 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 40: Reliable participation in success
Share and dividend Reliable participation in success Dividend of EUR 1.50 per share proposed for FY 2017 (EUR 1.35 in previous year). INDUS Holding AG’s profit distribution would thus total EUR 36.7 million, which would be equivalent to 43.9% of the distributable profit (42.7% in previous year). The
Slide 41: Analysts' estimates and target prices
Share and dividend Analysts‘ estimates and target prices BUY (02/18) INDUS share currently BUY (02/18) covered by eight banks and investment firms. BUY (02/18) Most recently, Equinet NEUTRAL (11/17) Bank started equity research on INDUS BUY (02/18) again in August 2017. BUY (11/17) The average tar
Slide 42: Price performance
Share and dividend Price performance 250 35 +171%* 30 +15%* 200 25 150 20 100 15 10 50 5 0 0 -5 -50 30.12.16 30.3.17 30.6.17 30.9.17 31.12.17 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 INDUS Holding AG DAX Index SDAX Performance Index INDUS Holding AG DAX Ind
Slide 43: INTRODUCTION OF AXEL MEYER
INTRODUCTION OF AXEL MEYER . STRATEGIC REPORT 2017 . FISCAL YEAR 2017 . SHARE AND DIVIDEND - OUTLOOK 2018 . APPENDIX [INDUS] 43
Slide 44: Outlook 2018: The world economy
Outlook 2018 The world economy Acitivity in the large economies continues to expand for the time being (world economy to grow by 3.8%) Potential supporting factors: Monetary policy will remain expansionary, albeit somewhat reduced Further economic stimulation measures Strong increase in demand in de
Slide 45: INDUS sectors and segments
Outlook 2018 INDUS sectors and segments Economic framework remains very good; capacities restricted by shortage of skilled labour; construction and security technology are sectors of the future for INDUS OEMs increase their investment budgets again; pre-series suppliers remain under margin pressure;
Slide 46: Guidance on segment level
Outlook 2018 Guidance on segment level 400 450 10% 400 375.1 280 450 394.1 385.6 350 330.4 400 350 17%400 15% 230 300 350 350 300 15.0% 300 14.3% 300 250 250 15%180 155.2 250 10% 250 200 15% 3.7% 5% 200 200 130 13.4% 200 6.3% 150 150 150 150 100 80 5% 49.4 100 100 100 53.5 50 50 14.7 50 30 20.8 50 2
Slide 47: 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 Continuation of the investment drive (EUR 88 million planned for property, plant and equipment and intangible assets) Further acquisitions planned (
Slide 48: Guidance on group level
Outlook 2018 Guidance on group level 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 Equity rati
Slide 49: Board members of INDUS Holding AG
Starting at the left: Rudolf Weichert (Board Member) Axel Meyer (Board Member) Jürgen Abromeit (Chairman of the Board) Dr.-Ing. Johannes Schmidt (Board Member) 49
Slide 50: INTRODUCTION OF AXEL MEYER
INTRODUCTION OF AXEL MEYER . STRATEGIC REPORT 2017 . FISCAL YEAR 2017 . SHARE AND DIVIDEND . OUTLOOK 2018 . APPENDIX [INDUS]
Slide 51: Publication and capital market dates in 2018
Appendix Publication and capital market dates in 2018 27 March 2018 Annual Report on the results of FY 2017 Publication 27 March 2018 Press Conference on the results of FY 2017 Düsseldorf 28 March 2018 Analysts' Conference on the results of FY 2017 Frankfurt am Main 18 April 2018 Deutschland Confere
Slide 52: Fiscal year 2017 at a glance
INDUS in figures Fiscal year 2017 at a glance Sales 1,640.6 1,444.3 13.6 Operating cashflow 145.0 137.9 5.1 EBITDA 215.3 200.9 7.2 Cash flow from operating activity 124.0 114.5 8.3 EBIT 152.9 144.9 5.5 Cash flow from investing activity -110.0 -104.4 5.4 EBIT margin (in %) 9.3 10.0 -0.7 pp Cash flow
Slide 53: Sales and earnings contributions of the segments
INDUS in figures Sales and earnings contributions of the segments Sales with external third parties 330.4 394.1 375.1 155.2 385.6 EBITDA 58.2 36.5 64.2 27.6 37.7 Depr./Amortization -8.8 -21.8 -10.7 -6.8 -13.5 EBIT 49.4 14.7 53.5 20.8 24.2 EBIT margin (in %) 15.0 3.7 14.3 13.4 6.3 Capital expenditure
Slide 54: Performance in the past five years
INDUS in figures Performance in the past five years 1,640.6 180 20.0% 160 152.9 18.0% 1,388.9 1,444.3 144.9 136.3 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 55: Performance of the segments in the past five years
INDUS in figures Performance of the segments in the past five years 55