Slide 1: Presentation of the Results for the First Quarter of 2019
PRESENTATION OF THE RESULTS FOR THE FIRST QUARTER OF 2019 Bergisch Gladbach, 14 May 2019
Slide 2: Agenda
AGENDA VurFfwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - Q1 2019 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS]
Slide 3: Business Model: We Are Passionate About SMEs
INDUS BUSINESS MODEL [INDUS] WE ARE PASSIONATE ABOUT SMES HoRN WE... \aaneyae SSCHERIN om Ss — are the leading specialist in long-term investment HANNOVER = \ i BERHISS. j Sma \nenue) ga and development in the german SME Sector. ROLKO= weenKo OBUK® , "SUDDE RAGUSE DUSSELDORF a VULKAN INOK MIGUA™ = —
Slide 4: INDUS Investments Are Present in More Than 30 Countries
INDUS BUSINESS MODEL [INDUS] INDUS INVESTMENTS ARE PRESENT IN MORE THAN 30 COUNTRIES GERMANY EUR 878.9 millions 7,789 employees EUROPE EUR 383.5 millions 1,499 employees REST OF THE WORLD EUR 448.4 millions 1,426 employees sales and employee figures and locations as at 31.12.2018, Europe = EU and Sc
Slide 5: Broad Portfolio as a Core Strategic Element
INDUS BUSINESS MODEL [INDUS] BROAD PORTFOLIO AS A CORE STRATEGIC ELEMENT CONSTRUCTION! AUTOMOTIVE- ENGINEERING MEDICAL ENGINEERING/ METALS- INFRASTRUCTURE TECHNOLOGY LIFE SCIENCE TECHNOLOGY INDUS COMPANIES INDUS COMPANIES INDUS COMPANIES INDUS COMPANIES INDUS COMPANIES BROAD POSITIONING ENSURES GREA
Slide 6: Universe of Financial Investors
INDUS BUSINESS MODEL UNIVERSE OF FINANCIAL INVESTORS Short to medium-term return-driven investments — Large Caps: Apax, Blackstone, KKR — Mid Caps: DBAG, 3i, Odewald = Small Caps: MBB Industries Investments in companies in special situations with no long-term intention — Aurelius — Bavaria Industrie
Slide 7: Support from a Long-Term Financial Investor
INDUS BUSINESS MODEL [INDUS] SUPPORT FROM A LONG-TERM FINANCIAL INVESTOR INDUS Holding AG stuncaiceparring _ ) Portfolio companies Portfolio Management Independent operational management of the business — Supporting portfolio companies in strategic issues — Research and development — Promoting portf
Slide 8: Accompanying SME Hidden Champions in the Long Term
INDUS ACCOMPANYING SME HIDDEN CHAMPIONS IN THE LONG TERM as a MAJORITY a BANK RFHOLDER as a CONSULTANT s a FINANZHOLDING — Company acquisitions — Long-term holding perspective — Know-how — Financing tasks in shareholder — Investments in property, plant © — Operational responsibility — Strategic Spar
Slide 9: Sustainability Remains Integral Component
INDUS BUSINESS MODEL SUSTAINABILITY REMAINS INTEGRAL COMPONENT SUSTAINABILITY REPORT 2018 CDP CLIMATE SCORING [INDUS] OECOM RATING Third INDUS _ : Sustainability Report aCe in accordance with SUSTAINABILITY the German Sustainability Code . INDUS obtained another “A” rating in 2018. 2018 CLIMATE CHAN
Slide 10: Agenda
AGENDA urFfwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - Q1 2019 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 10
Slide 11: We're Going to the Next Level
STRATEGY [INDUS] WE'RE GOING TO THE NEXT LEVEL — The long-term path of "COMPASS 2020" and its core strategy of "Buy, hold & develop" is paying off. We have become bigger, more international and more efficient. — In keeping with our philosophy, the individual portfolio companies retain their independ
Slide 12: Because We Will Be Facing Growing Challenges
STRATEGY BECAUSE WE WILL BE FACING GROWING CHALLENGES — The global environment has become more unpredictable, worldwide competition is growing and digitization is presenting enterprises with fundamentally new challenges. — In order for our portfolio companies to successfully master these tasks, they
Slide 13: The Name Stands for Greater Agility
STRATEGY [INDUS] THE NAME STANDS FOR GREATER AGILITY EXPANSION IN THE oy, INNOVATION GROWTH INDUSTRIES 2@s uy TECHNOLOGICAL CHANGE + LATS J) 4+ - --\ DIGITALIZATION ~ [OAK: % OPERATIONAL INTERNATIONALIZATION EXCELLENCE
Slide 14: Continue to Develop the Investment Portfolio
OUR GOALS FOR THE NEXT 7 YEARS [INDUS] 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 f
Slide 15: Take the Group to the Next Technology Level
OUR GOALS FOR THE NEXT 7 YEARS [INDUS] 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 digitization, operational excellence and internationalization. 2. DRIVE INNOVATI
Slide 16: Continue to Deliver on Our Promises to Our Stakeholders
OUR GOALS FOR THE NEXT 7 YEARS [INDUS] CONTINUE TO DELIVER ON OUR PROMISES TO OUR STAKEHOLDERS PERFORMANCE PROMISE SHAREHOLDERS They have the opportunity to invest in a broadly diversified managed portfolio of German-language SMEs — with a reliable dividend from a stable balance sheet. SELLING ENTRE
Slide 17: Our 7-Point Target for 2025
PARKOUR [INDUS] OUR 7-POINT TARGET FOR 2025 1. 55 to 60 investments with revenues > EUR 2.5 billion. 2. EBIT margin target of 10% reliably reached again. 3. Industries of the future are clearly reflected in the portfolio. 4. Innovation has established itself as a growth engine in the portfolio compa
Slide 18: Agenda
AGENDA VuirFwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - Q1 2019 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 18
Slide 19: Overall View of the First Quarter of 2019
INDUS OVERALL VIEW OF THE FIRST QUARTER OF 2019 — High sales growth (+7,2 %) with strong organic growth (6,7 %) — Good development in four out of five segments in a largely pleasing economic environment — But: pressure on serial supplier automotive increases due to a drop in call-off figures in Q1 —
Slide 20: Q1 2019 at a Glance
INDUS IN FIGURES Q1 2019 AT A GLANCE EARNINGS FIGURES Q1 2019 Q1 2018 Ain% Sales 437.6 408.2 7.2 EBITDA 54.9 51.9 5.8 EBIT before impairments 33.6 35.5 75.4 EBIT before after impairments (in %) 77 8.7 “1.0 p EBT 30.1 30.3 -0.7 Earnings after taxes 19.9 20.0 -0.5 CASHFLOW FIGURES Q1 2019 Qi 2018 Ain%
Slide 21: Sales Growth and EBIT Margin Drivers
Strong organic growth (6.7 %) Lower financial Slightly Discharge of EBIT margin: expenses reduced tax leasing expenses 7.7% (minority rate (0.1 (application of (Previous year shareholder percentage IFRS 16) 8.7%) profit shares) points) 21
Slide 22: Statement of Cash Flows Q1 2019
INDUS IN FIGURES STATEMENT OF CASH FLOWS FROM 1 JANUARY 2019 TO 31. MARCH 2019 Cash outflow below previous year's level OPERATING CASH FLOW SIGNIFICANTLY ABOVE YEAR Lower growth in working capital mainly due to lower increase in receivables and inventories (EUR 30 million below previous year) Invest
Slide 23: Development of the Segments in Q1 2019
INDUS IN FIGURES DEVELOPMENT OF THE SEGMENTS IN Q1 2019 [INDUS] Medical Construction/ Automotive Engineering/ Metals (in EUR millions) Infrastructure Technology Engineering _Life Science Technology Sales with external third parties 86.6 92.8 109.3 40.9 108.3 EBITDA 13.3 7.1 17.2 6.1 12.8 Depreciatio
Slide 24: Construction/Infrastructure Q1 2019
INDUS IN FIGURES [INDUS] CONSTRUCTION/INFRASTRUCTURE Q1 2019 SALES AND EARNINGS GROWTH — Organic sales growth at 9.6% — Growth, especially in the area of "air conditioning units" — Disproportionate increase in operating profit — Acquisition of the previous year (supplier of room air conditioners) is
Slide 25: Automotive Technology Q1 2019
INDUS IN FIGURES [INDUS] AUTOMOTIVE TECHNOLOGY Q1 2019 SERIES BUSINESS WITH DECLINING SALES AND EARNINGS — Difficult conditions in the automotive industry are exacerbated — Dropped demand numbers at 2 of the 3 large serial suppliers — EBIT margin burdened by declining sales volumes and repositioning
Slide 26: Engineering Q1 2019
INDUS IN FIGURES [INDUS] ENGINEERING Q1 2019 STRONG START TO THE YEAR — Significant increase in sales in Qi (especially supported by the large plant manufacturers) — High order backlog (utilization is ensured until the following year) = Fold - — EBIT margin declines slightly due to a few less profit
Slide 27: Medical Engineering/Life Science Q1 2019
INDUS IN FIGURES [INDUS] MEDICAL ENGINEERING/LIFE SCIENCE Q1 2019 SLIGHT SALES GROWTH WITH CONSTANT RESULT — Positive sales development — EBIT declines in highly competitive areas "nonwovens and surgical sets" — previously uncompensated customer disposals — Increased labor costs in foreign productio
Slide 28: Metals Technology Q1 2019
INDUS IN FIGURES [INDUS] METALS TECHNOLOGY Q1 2019 SOLID START TO THE FINANCIAL YEAR — Sales increase in all product areas except "carbide tools and mining" — Same period last year with exceptionally high sales — Increased material procurement prices in the area of "carbide tools and mining" weigh o
Slide 29: Outlook for 2019: Framework Conditions and INDUS Group
OUTLOOK FOR 2019 FRAMEWORK CONDITIONS AND INDUS GROUP — Heightened competitive conditions: subdued economic expectations and simmering political risks such as trade dispute and Brexit — The majority of INDUS investments still operate in an intact economic environment — But: market weakness in the au
Slide 30: Guidance for the Group
OUTLOOK FOR 2019 [INDUS] GUIDANCE FOR THE GROUP GROUP ACTUAL 2018 PLAN 2019 Sales EUR 1.71 billion EUR 1.72 - 1.77 billion EBIT EUR 134.7 million EUR 156 - 162 million Acquisitions 2 complementary additions 2 growth acquisitions at sub-subsidiary level Investments in property, EUR 90.9 million EUR 8
Slide 31: Agenda
AGENDA [INDUS] INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - Q1 2019 AND OUTLOOK DIVIDEND AND SHARE APPENDIX uirFfwn = 31
Slide 32: Very Stable Shareholder Base
SHARE AND DIVIDEND [INDUS] VERY STABLE SHAREHOLDER BASE ANCHOR SHAREHOLDERS SUPPORT LONG-TERM COURSE OF BUSINESS Shareholder base WKN/ISIN 620010/DE 000 620 010 8 Established/IPO 1986/1995 19.4% Fiscal year 01.01. — 31.12. Capital stock EUR 63,6 milion Number of shares 24,450,509 no-name bearer shar
Slide 33: Dividend Proposal for the Fiscal Year 2018
SHARE AND DIVIDEND DIVIDEND PROPOSAL FOR THE FISCAL YEAR 2018 [INDUS] 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 46.4% 6 43.9% 48.0% 3.1% 3-8% 41.9% 42.7% e 2.7% 2.6% 2.5% oe
Slide 34: Significant Recovery in the First Months of 2019
SHARE AND DIVIDEND [INDUS] FISCAL YEAR 2019: SIGNIFICANT RECOVERY IN THE FIRST MONTHS SHARE PRICE PERFORMANCE OF THE INDUS SHARE JANUARY TO APRIL 2019 EXCL. DIVIDENDS (indexed, in %) 25 20 15 10 5 0 V 38 31/12/18 31/1/19 28/2/19 31/3/19 30/4/19 Source: Bloomberg — INDUS Holding AG +—— DAX Performanc
Slide 35: Analyst Estimates and Price Targets
SHARE AND DIVIDEND ANALYST ESTIMATES AND PRICE TARGETS EXPERTS SEE UPWARD TREND — Seven banks and investment houses are currently watching INDUS shares. — Most recently, Equinet Bank (now Pareto Securities) resumed research on the INDUS share in August 2017. — The average price target is currently 5
Slide 36: Thank You Very Much
THANK YOU VERY MUCH FOR YOUR ATTENTION! Starting on the left: Dr. Jorn GroRmann (Board member) Axel Meyer (Board member) Dr.-Ing. Johannes Schmidt (Chairman of the Board) Rudolf Weichert (Board member) 36
Slide 37: Agenda
AGENDA VrFfwn = INDUS - OUR DNA PARKOUR - OUR STRATEGY INDUS IN FIGURES - Q1 2019 AND OUTLOOK DIVIDEND AND SHARE APPENDIX [INDUS] 37
Slide 38: Financial Calendar
FINANCIAL CALENDAR PUBLICATION AND CAPITAL MARKET DATES IN 2019 DATE EVENT [INDUS] VENUE 27 March 2019 Annual Report on the results of FY 2018 Publication 28 March 2019 Analysts' Conference on the results of FY 2018 Frankfurt/Main 2 April 2019 Bankhaus Lampe Deutschland Conference Baden-Baden 14 May
Slide 39: Performance in the Past Five Years
INDUS IN FIGURES [INDUS] PERFORMANCE IN THE PAST FIVE YEARS Sales EBIT and EBIT margin 10.1% 9.8% 10.0% 9.3% 8.8% % 1,640.6 W110.8 o——e——_e—___,, ° 9 1,444.3 ———e 1,388.9 1,255.7 152. L 7.2363 Lb | Li 134.7 2014 2015 2016 2017 2018 2015 2016 2018* eB EAT 100.7 109.3 1234 12902 114.7 tL i ll 63.3 68.
Slide 40: Performance of the Segments in the Past Five Years
INDUS IN FIGURES [INDUS] PERFORMANCE OF THE SEGMENTS IN THE PAST FIVE YEARS CONSTRUCTION/INFRASTRUCTURE AUTOMOTIVE TECHNOLOGY wae 12% 43% Be om 58% SA 52% a cm _—" ———e—_. a ————¢. e 9 ——e—_, . 3961 391.0 391.0 358.7 351-7 367.7 372.2 330-4 4.5 225.41 235.5 l | L | 4.3 (in EUR millions) 2014 2016 20
Slide 41: Parkour Focus 1/1: Strengthen the Portfolio Structure
PARKOUR FOCUS 1/1 [INDUS] STRENGTHEN THE PORTFOLIO STRUCTURE Accelerated acquisitions in the growth industries: Acquisition of an average of 2-3 portfolio companies per year at the first level. Automation! Measurement and Control Technology SHISE C111 Medical Engineering and Security Technology Life
Slide 42: Parkour Focus 1/2: Portfolio Structure Enhancement
PARKOUR FOCUS 1/2 PORTFOLIO STRUCTURE ENHANCEMENT Review the possibility to sell selected companies: By 2022, we will have resolved the tasks in accordance with the Group's targets. Will another owner be able to offer the company and its employees better development opportunities in the long term? [
Slide 43: Improve the Core Processes in INDUS Portfolio Companies
PARKOUR FOCUS 2 AND 3: STARTING POINTS [INDUS] IMPROVE THE CORE PROCESSES IN INDUS PORTFOLIO COMPANIES CUSTOMER . . BEST POSSIBLE REQUIREMENTS Product development Order generation Order processing FULFILMENT OF y y CUSTOMER REQUIREMENTS Initiative Initi ive “Operational Excellence in “Operational Ex
Slide 44: Parkour Focus 2/1: Drive Innovation
PARKOUR FOCUS 2/1 [INDUS] DRIVE INNOVATION Expanded understanding of innovation: Apart from products, we also look at services, — Digitization of products business processes and business models. — Prepare products for integration into loT platforms — Automation of production processes — Automation o
Slide 45: Parkour Focus 2/2: Drive Innovation
PARKOUR FOCUS 2/2 [INDUS] DRIVE INNOVATION Acquire younger companies in the future fields: We support our portfolio companies in the acquisition of Innovative innovative companies that have attractive interfaces with Industry 4.0 / Digitization Construction their operations. Technology — The busines
Slide 46: Parkour Focus 2/3: Drive Innovation
PARKOUR FOCUS 2/3 DRIVE INNOVATION Support with more financial resources and know-how: We are expanding our human and economic resources. — 18 projects with a total volume of EUR 9.8 million are currently underway; an amount of EUR 6.3 million has been committed for development purposes; the average
Slide 47: Parkour Focus 3/1: Increase Performance
PARKOUR FOCUS 3/1 INCREASE PERFORMANCE Promote operational excellence: We assist our portfolio companies more effectively in improving their value- adding core processes from product development to order processing. MANAGEMENT PROCESSES Strategy development, overall planning and control of resources
Slide 48: Parkour Focus 3/2: Increase Performance
PARKOUR FOCUS 3/2 INCREASE PERFORMANCE “OPERATIONAL EXCELLENCE IN STRATEGIC MARKETING/SALES” INITIATIVE Content focus: — Market/potential and competition analyses — Optimization of sales organization/channels — Expansion of foreign/export business — Sales/trade fair training — Optimization of the pr
Slide 49: Parkour Focus 3/3: Increase Performance
PARKOUR FOCUS 3/3 INCREASE PERFORMANCE “OPERATIONAL EXCELLENCE IN PRODUCTION” INITIATIVE 1, Project support 2. Lean Management training program — Transfer of methodological expertise — Conception/development and implementation of a three-step training program to train employees as internal Lean Expe
Slide 50: Parkour Focus 3/1: Promote Financial Excellence
PARKOUR FOCUS 3/1 INCREASE PERFORMANCE Promote financial excellence: We assist our portfolio companies more effectively in improving their financial support processes. Concrete focus on: - Forecast quality - Working Capital - Individual KPI monitoring [INDUS] MANAGEMENT PROCESSES Strategy developmen
Slide 51: Portfolio Companies: Construction/Infrastructure Segment
INDUS PORTFOLIO COMPANIES [INDUS] CONSTRUCTION/INFRASTRUCTURE SEGMENT COMPANIES DESCRIPTION LOCATIONS ancotech DiesIdorf (CH), Rossens (CH), Cologne (DE), Lauchhammer Anchoring and reinforcement technology (CH) BETOMAX. . A Anchoring and reinforcement technology Neuss (DE), Halle (DE) Sealants made
Slide 52: Portfolio Companies: Automotive Technology Segment
INDUS PORTFOLIO COMPANIES AUTOMOTIVE TECHNOLOGY SEGMENT COMPANIES DESCRIPTION [INDUS] LOCATIONS VURORA <: » A Seton ” Heating and air-conditioning systems for vehicles Mudau (DE), Grand Rapids (USA), Istanbul (TR), Nuenen (NL), Oettingen (DE), Shanghai (CN), Weert (NL) ausren Co) : : - ae : HEKERMAN
Slide 53: Portfolio Companies: Engineering Segment
INDUS PORTFOLIO COMPANIES ENGINEERING SEGMENT COMPANIES DESCRIPTION [INDUS] LOCATIONS Robotic hands and automation systems for manufacturers Overath (DE), Worth an der Donau (DE), Plymouth (US) Specialist for logistics and material flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmalkalden
Slide 54: Portfolio Companies: Medical Engineering/Life Science
INDUS PORTFOLIO COMPANIES MEDICAL ENGINEERING/LIFE SCIENCE [INDUS] COMPANIES DESCRIPTION LOCATIONS imeco Assembly of non-woven fabric products for medical, cosmetic, cleaning, and personal hygiene products Hdsbach (DE), Kénigswalde (DE), Lubari (PL) mikrcp oe oo ; . Miniaturized precision optics Wit
Slide 55: Portfolio Companies: Metals Technology
INDUS PORTFOLIO COMPANIES [INDUS] METALS TECHNOLOGY COMPANIES DESCRIPTION LOCATIONS => BACHER Steel and aluminum building modules for the rail industry Reinach (CH) BETEK Carbide tools for road construction and mining, tunnel and underground construction, farming, etc. Aichhalden (DE), Charlotte (US
Slide 56: Disclaimer
INDUS HOLDING AG [INDUS] 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 f