Bertrandt Ag · XETR:BDT
Bertrandt — Investor Presentation (September 2023)
64 slides from Bertrandt's investor presentation, Sep 18, 2023
Slide 1: Investor Presentation Bertrandt AG
Investor Presentation Bertrandt AG Markus Ruf, Björn Voss September 2023 0
Slide 2: Bertrandt AG At a glance
Bertrandt AG At a glance iy
Slide 3: Bertrandt Group: Driving Engineering and Digitization
Bertrandt Group: Driving Engineering and Digitization Founded by Total Revenues >13,000 More than 50 locations globally Harry Bertrandt FY 2021/22: EUR 1.009bn employees RoW Non-Automotive Porsche AG 10% Automotive Free 15% Float 28.97% 90% 52.1% Boysen Family Foundation Germany 14.9% of which: Mana
Slide 4: Goal: CO2 neutrality by 2039
Goal: CO2 neutrality by 2039 Sustainability part of group strategy Services aligned to sustainability targets of our customers Bertrandt targets: − 15% reduction of GHG by 2030 − CO2-neutral by 2039 Bertrandt AG Investor Presentation I September 2023 I Markus Ruf, Björn Voss 3
Slide 5: Goal: CO2 neutrality by 2039
Goal: CO2 neutrality by 2039 Bertrandt AG Investor Presentation I September 2023 I Markus Ruf, Björn Voss 4
Slide 6: HR: Successful national and international recruiting
HR: Succesfull national and international recruiting >100,000 CVs received 2021/22 Headcount in Romania >1,000 nearshore 13,949 ~1,000 net new hires Workforce 9m presence 9m 2022/23 2022/23 2017 2018 2019 2020 2021 2022 2023ytd ~2,000 Vacancies Bertrandt AG Investor Presentation I September 2023 I M
Slide 7: Key figures and outlook
Key figures and outlook 1,109-1,159 EBIT (EUR million) Total revenues (EUR million) 1,060 1,021 92.9 1,009 993 994 4.1-7% margin 917 72.1 849 62.9 60.3 41.7 20.0 15.2 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 202
Slide 8: Corporate Strategy
Corporate Strategy „ALL SERVICES FOR ALL CUSTOMERS“ Automobile Non-Auto Mobility Industries Focus on current and future services Strategic Initiatives Operational Customer New New Competitiveness Success Footprint Services Customers Employees | Culture Bertrandt AG Investor Presentation I September
Slide 9: Expert organization
Expert organization* Electronics Product Physical Production & Aerospace AM Engineering After Sales Software Experts Design Solutions Testing Solutions Smart Production Solutions Autonomous Mobility Simulation Solutions eMobility Customer Interaction Bertrandt Hamburg & Information Systems Testing S
Slide 10: Markets and customer environment
Markets and customer environment
Slide 11: Automotive market development
Automotive market development ▪ Heterogenous car markets in H1 ▪ Regulatory initiatives further ▪ Cost and efficiency pressure 2023, but positive current progressing: Euro-7 addressing ongoing and addressed business situation (ifo June 2023) break and tire particulate emissions ▪ Supply shortages sl
Slide 12: Order backlog at record, but declining
Order backlog at record, but declining LV production Order backlog 10.1 years: average age of car fleet in Germany Germany (Index 2019 =100) 200 − Auftragsbestand 150 der OEMs auf Rekordniveau − Hohe F&E 100 Budgets erwartet 50 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Bertrandt
Slide 13: Aviation market environment
Aviation market environment Global aviation demand is picking up strongly as the world adjusts to the post-Covid phase Emissions reduction and climate neutrality are megatrends in the aviation industry. Goal: climate-neutral flying by 2050 Geopolitical conditions drive R&D in Defence and Space Subst
Slide 14: Outlook Market Environment Industries (Germany)
Outlook Market Environment Industries (Germany) Machinery & Manufacturing industry Electrical industry Medical technology Plant engineering: Forecast 2023: Forecast 2023: Forecast 2023: Forecast 2023: Slight growth Strong start to the year Slight sales growth Production: -2 % 1-2% full-year producti
Slide 15: Investment highlights & opportunities
Investment highlights & opportunities
Slide 16: Global and industry specific mega trends lead to higher R&D spending
Global and industry specific mega trends lead to higher R&D spending Global Trends Industry Specific Trends − eMobility − Cyber Security − aMobility − Shared mobility − Connected systems − Regulation − Over-the-air updates − −Digitalization Lightweight, new materials Growing need for −Automatization
Slide 17: The automotive R&D market
The automotive R&D market 250 25 ▪ Global automotive R&D market 215 € bn 200 20 ▪ EUR 215bn in 2030f (CAGR 2020-2030f: +3.2%) 183 € bn 20.5 164 € bn 152 € bn 159 € bn 157 € bn 150 15 16.0 ▪ E/E & SW R&D as major growth driver 100 11.1 12.8 12.5 10 ▪ 2020: EUR 53bn, 2030f: EUR 104bn (CAGR: +7.0%) 10.
Slide 18: R&D investments steadily growing and resilient
R&D investments steadily growing and resilient ▪ OEM R&D budgets driven by megatrends: ▪ Digitization R&D expenditures ▪ Sustainable & Autonomous mobility 45 ▪ Connectivity 40 ▪ Innovations 35 30 ▪ Total R&D investments by German automotive industry: EUR 250bn (2023-2027, VDA) 25 ERU bn 20 ▪ More th
Slide 19: Outlook ESP: size matters
Outlook ESP: size matters Larger and more holistic R&D projects; emergence of an ESP tier-1 landscape Bertrandt AG Investor Presentation I September 2023 I Markus Ruf, Björn Voss 18
Slide 20: Outlook ESP: know-how matters
Outlook ESP: know-how matters Large ESPs with comprehensive expertise in breadth and depth along the megatrends in demand Bertrandt AG Investor Presentation I September 2023 I Markus Ruf, Björn Voss 19
Slide 21: Outlook ESP: international set-up matters
Outlook ESP: international set-up matters Customer proximity through international presence Competitive R&D capacity Bertrandt AG Investor Presentation I September 2023 I Markus Ruf, Björn Voss 20
Slide 22: Our test centers enable our clients to become more sustainable
Our test centers enable our clients to become more sustainable High-voltage battery test center Powertrain Solution Center* ▪ 24 HV channels ▪ 8 all-wheel-drive climatic and 2 height chambers ▪ 9,600 kW HV ▪ Altitude simulation up to 5,000 m ▪ 12 climate chambers ▪ Temperature range from -25 °C to +
Slide 23: Bertrandt addresses all drivers for individual mobility
Bertrandt adresses all drivers for individual mobility Individual Mobility Remains core need for people Electric Mobility Will dominate in the car segment Commercial Vehicles Electrification/Fuel cell (depending on purpose) Hydrogen and Fuel Cell Important as an alternative technology and for achiev
Slide 24: Bertrandt Medical
Bertrandt Medical Expansion of resources and service portfolio to meet special medical technology requirements Classic product development Increased demand for quality management, regulatory affairs, risk management, equipment qualification and process validations ISO 13485 certification in 2020 to
Slide 25: M&A strategy
M&A strategy Strategic fit M&A is part of Group strategy: ▪ to broaden technical and engineering skills M&A Reasonable Selective ▪ to deepen and to enlarge customer footprint pricing Strategy ▪ to expand global delivery ▪ to improve cooperation network Cultural fit Bertrandt AG Investor Presentation
Slide 26: Acquisition of Concept AG (July 2023)
Acquisition of Concept AG (July 2023) Comments − Concept AG is a consulting company specialized in Concept AG the fields of performance optimization, digital productivity tools and turnaround advice. The focus HQ Stuttgart ~ 29 Founded 1997 is to implement digitally-supported, efficient, and state-o
Slide 27: Strategic rationale
Strategic rationale Comments „ALL SERVICES FOR ALL CUSTOMERS“ Automobile Non-Auto Mobility Industries − Cross-selling opportunities for combined entity Focus on current and future services − Acquisition in line with diversification strategy Strategic Initiatives − Strongly growing, profitable busine
Slide 28: Dividend policy: reliable payout to shareholders
Dividend policy: reliable payout to shareholders*** Dividend, Payout Ratio, Yield (in EUR) 3.00 58% 60% 2.45 2.50 2.50 2.50 2.40 50% 2.20 43% 41% 41% 41% 39% 39% 40% 40% 2.00 40% 2.00 40% Payout ratio 1.60 1.50 30% 1.00 0.85 20% 0.50 0.27 10% 2.4% 2.4% 2.6% 2.6% 2.9% 2.5% 3.9% 0.15 2.5% 0.5% 0.5% 0.
Slide 29: 9M 2022/2023 & Q3 2022/2023
9M 2022/2023 | & Q3 2022/2023 t -~
Slide 30: 9M 2022/2023 at a glance
9M 2022/2023 at a glance Total revenues EUR 858m (2021/22: EUR 739m, +16%) P&L | EBIT EUR 32.7m (2021/22: EUR 25.9m, +26%) | Margin: 3.8% (2021/22: 3.5%) Cash flow | Free cash flow EUR -14m (2021/22: EUR -1m) Investments| EUR -19m (2021/22: EUR -39m incl. payout for Philotech Group) Share | EUR 49.0
Slide 31: Q3 2022/2023 at a glance
Q3 2022/2023 at a glance P&L | EUR 285m (Q3 21/22: 252m, +13%) EBIT | EUR 8.7m (Q3 21/22: 5.0m) | Margin: 3.0% (Q3 21/22: 2.0%) Investments| EUR 6.2m (Q3 21/22: EUR 6.8m) Employees | Growth +7% yoy (abroad: +17% yoy), foreign ratio 24% (21/22: 22%) Bertrandt AG Investor Presentation I September 2023
Slide 32: Highlights and general conditions
Highlights and general conditions ▪ Double-digit growth in all quarters ▪ Strong growth abroad (+31% outside of Germany) ▪ EBIT improved by +26% yoy in 9m 2022/2023 ▪ Equity and equity ratio further strengthened ▪ Sick leave normalized in Q3, but weighed on H1 22/23 figures ▪ Adverse working day eff
Slide 33: Highlights and general conditions
Highlights and general conditions ▪ R&D spending in our customer industries at a high level ▪ (Green) transformation progressing ▪ eModel variety to significantly increase between 2024-2030 ▪ Acquisition of Concept AG (July 2023) Bertrandt AG Investor Presentation I September 2023 I Markus Ruf, Björ
Slide 34: Highlights - Personnel
Highlights - Personnel ▪ New record: 13,949 employees in the Group ▪ Almost 1,000 net new hires compared with previous year ▪ New site in Morocco up and running: target >500 employees ▪ New brand identity: Winner of the German Brand Award Bertrandt AG Investor Presentation I September 2023 I Markus
Slide 35: P&L 9M 2022/2023
P&L 9M 2022/2023 ▪ Total revenues up 16% thanks to solid market demand and successful project awards 9M 2022/2023 9M 2021/2022 EUR million EUR million EUR million % ▪ Cost of materials: project-related increase in Total revenues 858,227 739,652 118,575 16.0% Other operating income 3,362 12,674 -9,31
Slide 36: Factors influencing total output and EBIT
Factors influencing total output and EBIT € Inflation M&A, third-party management services Successful project Employee acquisition growth Start-up test Salary development centers inflation compensation premium Sick leave, IT, Training working day Bertrandt AG Investor Presentation I September 2023 I
Slide 37: All segments recorded double-digit growth
All segments recorded double-digit growth 9M 2022/23 9M 2021/22 Q3 2022/23 Q3 2021/22 281.426 91.915 • Digital Engineering: solid demand for engineering services • Physical Engineering: late-cyclical recovery, but ramp-up burdening • Electric/Electronic: mobility mega-trends driving topline Bertrand
Slide 38: KPIs Balance Sheet
KPIs Balance Sheet Item (EUR m) 9M 2022/2023 2021/2022 Comment Non-current assets EUR 417m EUR 444m End of investment cycle, D&A, net deferred taxes Working capital EUR 337m EUR 294m Increase of contract assets Cash and cash equivalents EUR 107m EUR 162m Dividend payment, repayment of liabilities, W
Slide 39: TAKE AWAY – 9M 2022/2023
TAKE AWAY – 9M 2022/2023 Megatrends and legal regulation drive investment in R&D Double-digit growth in total output and EBIT Strategic alignment of the Group Active management of external factors New record number in headcount Bertrandt AG Investor Presentation I September 2023 I Markus Ruf, Björn
Slide 40: Outlook
Outlook
Slide 41: Forecast fiscal year 2022/2023
Forecast fiscal year 2022/2023 ▪ Macroeconomic conditions in Europe and Germany in particular less weak than feared, but Germany with weakest economic growth within Europe ▪ German automotive industry shaping transformation with high investment in R&D ▪ Successful recruiting and internationalization
Slide 42: Forecast 2022/2023 – confirmed after upgrade
Forecast 2022/2023 – confirmed after upgrade in H1 2022/2023 (previously: EUR 60-100 million) EUR 4.1-7% Positive EUR 100-150 million EBIT margin Cash flow from 25-40 million (previous year: 4.1%) operating activities growth in total output CapEx Bertrandt AG Investor Presentation I September 2023 I
Slide 43: Summary: reasons to invest
Summary: reasons to invest Market leading positioning • Experienced expert organization • Long-lasting & established customer relations • Deep engineering know-how Growing and resilient R&D market • Mega trends • Innovation pressure • Regulation Asset light business model • Broad IT, software and el
Slide 44: Back-up charts
Back-up charts
Slide 45: FY 2021/2022 At a glance
FY 2021/2022 At a glance P&L | Total revenues EUR 1.009bn (+19% yoy) | EBIT: EUR 41.664m | margin: 4.1% Cashflow | CapEx EUR 31.025m | FCF EUR +8.961m Balance Sheet | BS total: EUR 956.047m | Equity EUR 431.846m | Equity Ratio 45.2% Share price | 33.50 EUR (30.09.2022) Employees | 13,179 Bertrandt A
Slide 46: Highlights FY 2021/2022
Highlights FY 2021/2022 ▪ Double-digit top-line growth of +18.9% yoy to above EUR 1bn (organic sales growth of +15.1% yoy) ▪ EBIT at EUR 41.7m (+108% yoy) | EPS at EUR 2.09 (2020/2021: EUR 0.68) ▪ Philotech contributed to sales and EBIT from day one, co-operation and integration running smoothly ▪ U
Slide 47: Total revenues: Corona-trough overcome
Total revenues: „Corona-trough“ overcome Total revenues (in EUR m) − Noticeably improved capacity utilization thanks to increased +160.567 project awards +18.9% 1,059.870 1,021.020 1,009.159 916.582 − Short-time work ended in Germany in the course of the year 848.592 and significantly reduced in Fra
Slide 48: Segment development
Segment development Total revenues (in EUR m) − Digital Engineering: noticeable growth due +19.3% to improved capacity utilization following 500.000 487.354 pandemic-related delays in call-offs in the previous year 408.592 +26.8% 400.000 +26,8% +8.7% 305.059 − Physical Engineering: late-cycle recove
Slide 49: EBIT improved
EBIT improved EBIT and margin (in EUR m) 7.1% − EBIT benefits from increased capacity utilization 72.141 and cost reductions during Corona 5.7% (e.g. infrastructure optimization) 60.322 − Overall inflation with counteracting effect; 4.1% countermeasures such as price increases in place, 41.664 but d
Slide 50: Key expenditure figures and cost ratios
Key expenditure figures and cost ratios Personnel expenses (in EUR m) D&A (in EUR m) Other operating expenses (in EUR m) FYGJ2020/2021 2020/2021 FY GJ2021/2022 2021/2022 FY 2020/2021 GJ 2020/2021 FY GJ 2021/2022 2021/2022 FY GJ 2020/2021 2020/2021 FY GJ 2021/2022 2021/2022 -89.646 -0.479 -18.453 -65
Slide 51: Total revenues and EBIT impacted by…
Total revenues and EBIT impacted by… Utilization Sick leave M&A Headcount activity development Ramp-up Corona- test centers bonus Energy, IT) Bertrandt AG Investor Presentation I September 2023 I Markus Ruf, Björn Voss 50
Slide 52: Earnings performance
Earnings performance Profit before tax Profit after tax EPS (in EUR m) 32.797 (in EUR m) (in EUR) 21.134 2,09 2.09 12.160 6.909 0,68 0.68 GJ 2020/2021 FY 2020/2021 GJ 2021/2022 FY GJ 2020/2021 FY 2020/2021 GJ 2021/2022 FY 2021/2022 GJ 2020/2021 FY GJ 2021/2022 FY Bertrandt AG Investor Presentation I
Slide 53: Overview P&L
Overview P&L 2021/2022 2020/2021 comparison EUR million % of total EUR million % of total EUR million % Total revenues 1,009.159 1.009.159 100 % 848.592 100 % 160.567 19 % Other operating income 19.806 2% 13.490 2% 6.316 47 % Raw materials and consumables used -108.904 -11 % -72.222 -9 % -36.682 51
Slide 54: CapEx spending reduced
CapEx spending reduced CapitalCapital Expenditures Expenditures (w/o payments from changes in consolidated businesses) (in Mio. EUR) in EUR m − Investments focused on eMobility, 84.9 83.4 but still restrictive 65.8 − Investments in property, plant and 52.5 51.7 equipment down significantly, investme
Slide 55: Financial and asset position
Financial and asset position Equity and equity-ratio Cashflow from operating activities Free Cashflow (in EUR m) (in EUR m) (in EUR m) 45.2% 44.6% 431.846 73.662 35.902 408.828 56.900 8.961 FY GJ 2020/2021 2020/2021 FY GJ 2021/2022 FY 2020/2021 GJ 2020/2021 FY 2021/2022 GJ FY GJ 2020/2021 FY GJ 2021
Slide 56: Historical segment development
Historical segment development: Electric/Electronics drives growth 1,200 1,000 30% 800 21% EUR m 600 21% 21% 400 58% 48% 200 0 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Digital Engineering Physical Engineering Electric/Electronics Bertrandt AG Investor Presentat
Slide 57: Employees 2021/2022
Employees 2021/2022 Employees Workforce development FY 2021/2022 as of September 30th 13.179 12.030 13.500 106 13.000 Nationalities +1,149 − 722 Bertrandt within the Group Outstanding Apprenticeship − 427 Philotech 12.500 12.000 Top career opportunities (top 4) 11.500 GJ 2020/2021 FY 2020/2021 GJ 20
Slide 58: Q4 2021/2022 at a glance
Q4 2021/2022 at a glance P&L | Total revenues EUR 269.5m (+25.8% yoy, organically: +20.5%) | EBIT: EUR 15.8m | margin: 5.9% Cashflow | CapEx EUR 8.999m | FCF EUR +9.647m Balance Sheet | BS total: EUR 956.047m | Equity EUR 431.846m | Equity Ratio 45.2% Share price | 33.50 EUR (30.09.2022) Employees |
Slide 59: Group P&L Q4 2021/2022
Group P&L Q4 2021/2022 Q4 2021/2022 Q4 2020/2021 EUR million EUR million Total revenues 269.507 214.232 Other operating income 7.132 2.387 Raw materials and consumables used -29.616 -18.894 Personnel expenses -196.995 -169.022 Depreciation -14.929 -13.903 Other operating expenses -19.285 -13.008 EBI
Slide 60: Financial calendar
mie hay Financial calendar t
Slide 61: Back-up: Financial calendar
Back-up: Financial calendar 15 February 2023 Q1 2022/2023 11 May 2023 Q2 2022/2023, Capital Market Day Ehningen 07 August 2023 Q3 2022/2023 14 December 2023 FY 2022/2023, Analyst and Press conference FY 2021/2022 Annual- & ESG-report Bertrandt AG Investor Presentation I September 2023 I Markus Ruf,
Slide 62: Thank you very much
Thank you very much Categories: ▪ Best overall investor relations (small cap) ▪ Best investor relations officer (small cap) 61
Slide 63: Contact details
Contact details Markus Ruf Member of the Board, Finance Categories: Björn Voss ▪ ▪ Best overall investor relations (small cap) Best investor relations officer (small cap) Head of Group Investor Relations Vice President Commercial (Bertrandt Ingenieurbüro GmbH) Bertrandt AG, Birkensee 1, 71139 Ehning
Slide 64: Legal notice
Legal notice This presentation contains inter alia certain foresighted statements about future developments, which are based on current estimates of management. Such statements are subjected to certain risks and uncertainties. If one of these factors of uncertainty or other imponderables should occu