Slide 1: Presentation of Income for H1 2024
PRESENTATION OF INCOME FOR H1 2024 Bergisch Gladbach, 13 August 2024
Slide 2: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS H1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2024 5 OUTLOOK 6 APPENDIX 2
Slide 3: Significant Developments H1 2024
SIGNIFICANT DEVELOPMENTS H1 2024 REDUCED EXPECTATIONS FOR SECOND HALF-YEAR DUE TO SUBDUED ECONOMY − First half-year performance in line with expectations despite difficult macroeconomic environment − Sales decline of 7.2% due to all segments − EBIT margin of 7.6% (PY: 9.4%) due to EBIT decline in En
Slide 4: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS H1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2024 5 OUTLOOK 6 APPENDIX 4
Slide 5: We Are Shaping the Future
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 promise the companies in our portfolio and those who join us WE ARE that we will help them to grow as tec
Slide 6: INDUS - Sustainable for Stakeholders
INDUS - SUSTAINABLE FOR STAKEHOLDERS OUR PROMISES TO OUR STAKEHOLDERS Develop in a safe Invest in a managed portfolio of environment and technology-orientated SMEs in receive valuable German-speaking countries and impulses and support. PORTFOLIO receive a reliable dividend COMPANIES SHAREHOLDERS pay
Slide 7: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS H1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2024 5 OUTLOOK 6 APPENDIX 7
Slide 8: PARKOUR perform
PARKOUR perform STRATEGIC INITIATIVES THAT MOVE US FORWARD 1 2 3 4 STRENGTHENING DRIVING IMPROVING STRIVING FOR THE PORTFOLIO INNOVATION PERFORMANCE SUSTAINABILITY STRUCTURE 8
Slide 9: Strengthening the Portfolio Structure
STRENGTHENING THE PORTFOLIO STRUCTURE 2024 WITH ATTRACTIVE ACQUISITION OPPORTUNITIES FOR INDUS − M&A budget of EUR 70 million sets ambitious ambitious target for 2024 − Well-filled M&A pipeline for growth acquisitions and add-on acquisitions − Attractive targets in future fields − Infrastructure net
Slide 10: Big Potential in Germany: Succession in SMEs
BIG POTENTIAL IN GERMANY SUCCESSION IN SMEs 125.000 companies (per year) are in search of successors until GERMAN SMEs 2027 Every third owner is at least 60 years old Source: Succession monitoring for SMEs KfW Bank, February 2024 10
Slide 11: Acquisitions on Two Levels
ACQUISITIONS ON TWO LEVELS GROWTH OR ADD-ON ACQUISITIONS GROWTH ACQUISITION ADD-ON ACQUISITIONS Acquisition directly by Acquisition by INDUS Holding AG INDUS portfolio company (1st level) (2nd level) Expansion of the INDUS portfolio Strengthening the portfolio company with new competences and produc
Slide 12: Revitalised M&A Pipeline
REVITALISED M&A PIPELINE LIVELY ACQUISITION ACTIVITY IN H1 2024 GESTALT AUTOMATION COLSON X-CEL, UK ENGINEERING segment ENGINEERING segment − AI-based automation − Strengthening of PCL solutions for industrial (subsidiary of HORNGROUP) applications 1st level 2nd level HAUFF-TECHNIK GRIDCOM TECALEMIT
Slide 13: Driving Innovation
DRIVING INNOVATION INDUS KI-SPRINT CONTINUOUS TRAINING POTENTIAL WORKSHOP FINANCING OF PROJECTS KI & DATA SCIENCE AI & LANGUAGE DEMYSTIFIED INDUS Innovation Promotion Bank TU Munich AI Lab Fraunhofer IAIS 6 sprint projects, total funding of EUR 173,000 11 portfolio companies 5 portfolio companies ap
Slide 14: Improving Performance
IMPROVING PERFORMANCE LOGIC OF THE EXCELLENCE INITIATIVES Strategic potential Improving − Market attraction Performance − Competitive position Key leverage Operational excellence Wasted Optimal future high potential viability Key leverage Levers both Market and Market excellence operational excellen
Slide 15: Global Thinking, Act Local - INDUS International
GLOBAL THINKING, ACT LOCAL - INDUS INTERNATIONAL 15
Slide 16: Focus on Internationalisation: Portfolio Companies
FOCUS ON INTERNATIONALISATION INDUS SUPPORTS PORTFOLIO COMPANIES IN ESTABLISHING INTERNATIONAL LOCATIONS PORTFOLIO COMPANIES SUPPORT BY INDUS Building and Support through Provision of International growth strengthening training courses legal and other through add-on the network of marketing and sale
Slide 17: Focus on Internationalisation: Recent Portfolio Activities
FOCUS ON INTERNATIONALISATION RECENT PORTFOLIO ACTIVITIES IN ... USA MEXICO INDIA Infrastructure: Materials: Engineering: − AURORA: Strong expansion of US − VULKAN: Establishment of a Sales & − HORNGROUP: Capacity expansion manufacturing facility for new US Service location with the Indian JV partne
Slide 18: Striving for Sustainability
STRIVING FOR SUSTAINABILITY SIGNIFICANT DECREASE IN GREENHOUSE GAS EMISSIONS − Energy efficiency measures paying in 2023 − INDUS sustainability development bank encouraging significant activities − In 2023: five approved projects, total investment of EUR 1.7 million, grant volume 53%. − In 2022: six
Slide 19: Striving for Sustainability: ISS ESG Rating
STRIVING FOR SUSTAINABILITY ISS ESG RATING CONFIRMED AGAIN − Top position in the ISS ESG rating for the ninth time in a row − INDUS receives "C+" rating in the area of "Corporate ESG Performance" − Top position in the international peer group of "Financials / Multi-Sector Holdings" − Prerequisite fo
Slide 20: #4 SUSTA[IN]
#4 SUSTA[IN] FOURTH INDUS SUSTAINABILITY MAGAZINE PUBLISHED − Social sustainability - how social aspects pave the way to sustainable development − Recruitment − CSRD − Diversity - three successful women from the INDUS Group present themselves and their work − Business ethics − Health management − Em
Slide 21: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS H1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2024 5 OUTLOOK 6 APPENDIX 21
Slide 22: Engineering at a Glance
ENGINEERING AT A GLANCE INDUSTRIAL TECHNOLOGY AREAS IN THE ENGINEERING SEGMENT ENGINEERING − Automation & Assembly Technology 16 COMPANIES IN THE SEGMENT − Conveyor Technology − Fluid Technology − Machine & Toolbuilding Technology − Measuring & Surveillance Technology − Process Technology 22
Slide 23: Engineering: Two New Acquisitions in the First Half-Year
ENGINEERING TWO NEW ACQUISITIONS IN THE FIRST HALF-YEAR − Decline in sales of 5.2% due to weaker business with sorting CURRENT INDUSTRY TREND plants and in packaging machinery; thereof: organic decline of 5.4% and inorganic growth of 0.2% Incoming orders in mechanical and plant engineering still fal
Slide 24: Engineering: EBIT Margin Declining
ENGINEERING EBIT MARGIN DECLINING EBIT (in EUR million) Adjusted EBITA (in EUR million) SALES (in EUR million) EBIT margin (in %) Margin of adjusted EBITA (in %) -5.2% 11.3% 280.7 9.2% 266.1 7.4% 5.2% 31.6 25.9 19.6 13.9 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 PPA depreciation 24
Slide 25: Engineering: Order Development
ENGINEERING ORDER DEVELOPMENT INCOMING ORDERS (in EUR million) ORDER BACKLOG (in EUR million) Increase of incoming orders mainly in the areas of cleanroom systems, sorting systems +2.2% +4.8% and packaging machines 258.3 264.1 385.4 403.9 H1 2023 H1 2024 31.12.2023 30.06.2024 25
Slide 26: Infrastructure at a Glance
INFRASTRUCTURE AT A GLANCE MEGATRENDS INFRASTRUCTURE − Mobility and urbanisation 14 COMPANIES IN THE SEGMENT − Digitalization − Sustainability FUTURE TOPICS − Infrastructure networks − Infrastructure buildings − Energy efficiency 26
Slide 27: Infrastructure: EBIT and EBIT Margin Improved
INFRASTRUCTURE EBIT AND EBIT MARGIN IMPROVED − Decline in sales of 5.0% to EUR 276.8 million CURRENT INDUSTRY TREND (PY: EUR 291.3 million); thereof: 7.2% organic decline and 2.2% inorganic growth Price-adjusted incoming orders in the first five months of the year 4.4% below the previous year. Negat
Slide 28: Infrastructure: Good Margin Development Despite Declining Business
INFRASTRUCTURE GOOD MARGIN DEVELOPMENT DESPITE DECLINING BUSINESS EBIT (in EUR million) Adjusted EBITA (in EUR million) SALES (in EUR million) EBIT margin (in %) Margin of adjusted EBITA (in %) -5.0% 291.3 276.8 11.8% 10.7% 9.5% 8.6% 29.7 27.6 32.6 25.1 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 202
Slide 29: Infrastructure: Order Development
INFRASTRUCTURE ORDER DEVELOPMENT INCOMING ORDERS (in EUR million) ORDER BACKLOG (in EUR million) Strong rise of incoming orders for heating and +1.7% air conditioning systems for commercial +4.0% vehicles 272.1 282.9 172.1 175.0 Decline in incoming orders for air conditioning units for buildings due
Slide 30: Materials at a Glance
MATERIALS AT A GLANCE MEGATRENDS MATERIALS − Sustainability 14 COMPANIES IN THE SEGMENT − Mobility and urbanization − Demographics and health FUTURE TOPICS − Industrial materials and processing − Circular economy and recycling − Agriculture and food industries 30
Slide 31: Materials: Margins Increased Despite Lower Revenue
MATERIALS MARGINS INCREASED IN COMPARISON TO THE PREVIOUS QUARTERS, DESPITE LOWER REVENUE − Decline in sales of 10.8% to EUR 295.8 million (PY: EUR 331.5 CURRENT INDUSTRY TREND million) due to weak development of the metal industry and corresponding reluctance of customers and higher price pressure
Slide 32: Materials: Significantly Calmed Business Activity
MATERIALS SIGNIFICANTLY CALMED BUSINESS ACTIVITY EBIT (in EUR million) Adjusted EBITA (in EUR million) SALES (in EUR million) EBIT margin (in %) Margin of adjusted EBITA (in %) -10.8% 331.5 11.5% 11.9% 295.8 9.4% 9.8% 38.1 39.5 27.9 29.0 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 PPA depreciati
Slide 33: Materials: Order Development
MATERIALS ORDER DEVELOPMENT INCOMING ORDERS (in EUR million) ORDER BACKLOG (in EUR million) Incoming orders of EUR 280.8 million for the first six months of 2024 (PY: EUR 308.5 million) -9.0% -8.2% Continued weak development in the metal technology sector due to falling prices and 308.5 280.8 153.3
Slide 34: Sales by Segment H1 2024
SALES BY SEGMENT H1 2024 SALES IN ALL SEGMENTS DECLINING ENGINEERING INFRASTRUCTURE MATERIALS -10.8% -5.2% -5.0% 331.5 280.7 291.3 276.8 295.8 266.1 Sales (in EUR million) H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 GUIDANCE AUG 2024: GUIDANCE AUG 2024: GUIDANCE AUG 2024: Sales slightly decreasi
Slide 35: EBIT and EBIT Margin per Segment H1 2024
EBIT AND EBIT MARGIN PER SEGMENT H1 2024 DIFFERENT DEVELOPMENTS IN ENGINEERING AND MATERIALS VS. INFRASTRUCTURE ENGINEERING INFRASTRUCTURE MATERIALS -26.8% +18.3% -46.3% 38.1 29.7 25.9 25.1 27.9 11.5% 10.7% EBIT (in EUR million) 9.2% 13.9 8.6% 9.4% 5.2% H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 202
Slide 36: EBITA (Adjusted) per Segment H1 2024
EBITA (ADJUSTED) PER SEGMENT H1 2024 GOOD DEVELOPMENT IN THE INFRASTRUCTURE SEGMENT ENGINEERING INFRASTRUCTURE MATERIALS -26.6% -38.0% +18.1% 39.5 31.6 32.6 11.3% 27.6 11.8% 29.0 EBITA adjusted (in EUR million) 9.5% 11.9% 19.6 7.4% 9.8% H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 PPA depreciatio
Slide 37: INDUS in Figures: Key Figures H1 2024
INDUS IN FIGURES KEY FIGURES H1 2024 SALES EBIT / EBIT margin Adjusted EBITA / margin (in EUR million) (in EUR million) (in EUR million) -7.2% -24.5% -21.8% 904.1 84.9 94.5 64.1 73.9 839.1 9.4% 7.6% 10.5% 8.8% H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 PPA depreciation 37
Slide 38: INDUS in Figures: Working Capital and Investments
INDUS IN FIGURES KEY FIGURES H1 2024 WORKING CAPITAL INVESTMENTS (in EUR million) (in EUR million) +5.8 % 35.9 494.1 27.1 466.9 18.5 8.9 18.2 17.4 H1 2023 H1 2024 31.12.2023 30.06.2024 M&A acquisitions Property, plant and equipment and intangible assets 38
Slide 39: INDUS in Figures: Free Cash Flow, Net Debt, Equity Ratio
INDUS IN FIGURES KEY FIGURES H1 2024 FREE CASHFLOW NET DEBT EQUITY RATIO (in EUR million) (in EUR million) (in %) +11.7% +0.7 pp 565.3 37.3 38.0 +17.0% 506.2 41.2 35.2 H1 2023 H1 2024 31.12.2023 30.06.2024 31.12.2023 30.06.2024 39
Slide 40: Development of Free Cash Flow
DEVELOPMENT OF FREE CASH FLOW STRONG FREE CASH FLOW − Increase in free cash flow of EUR 6.0 million due to in EUR million H1 2024 H1 2023 lower cash-effective increase in working capital Operating cash flow from continuing operations 53.3 39.2 − Previous year's free cash flow also including a positi
Slide 41: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS H1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2024 5 OUTLOOK 6 APPENDIX 41
Slide 42: Economic Environment - Outlook for 2024
ECONOMIC ENVIRONMENT - OUTLOOK FOR 2024 GERMANY LAGGING BEHIND IN THE INTERNATIONAL ECONOMIC RECOVERY COURSE − Positive developments within regions, but growth varies significantly − US economy remaining robust, economy in the eurozone stagnating − Germany lagging behind the international growth fig
Slide 43: Adjusted Forecast for the Segments 2024
ADJUSTED FORECAST FOR THE SEGMENTS 2024 FORECAST ADJUSTED AS MARKETS WILL LACK MOMENTUM IN FURTHER COURSE OF THE YEAR Segment ENGINEERING INFRASTRUCTURE MATERIALS Forecast Forecast Forecast 2023 2023 2023 Aug 2024 Aug 2024 Aug 2024 Slightly Slightly Sales (in EUR million) 599.6 582.2 619.9 Decreasin
Slide 44: Adjusted Forecast for the Group 2024
ADJUSTED FORECAST FOR THE GROUP 2024 SALES AND EBIT DEVELOPMENT CHARACTERISED BY DETERIORATING GENERAL CONDITIONS GROUP Forecast 2023 Aug 2024 Sales (in EUR billion) 1.80 1.70 -1.80 EBIT (in EUR million) 149.6 125 - 145 EBIT margin (in %) 8.3 7.0 bis 8.0 Free cash flow (in EUR million)* 198.9 >110 *
Slide 45: Current Shareholder Structure
CURRENT SHAREHOLDER STRUCTURE ANCHOR SHAREHOLDERS SUPPORT THE COMPANY'S LONG-TERM COURSE SHAREHOLDER STRUCTURE OF INDUS HOLDING AG AS OF 22 MAY 2024 (in %) WKN/ISIN 620010/EN 000 620 010 8 Foundation/IPO 1986/1995 Financial year 1 Jan. to 31 Dec. Share capital EUR 69.9 million Versicherungskammer 13
Slide 46: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS H1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - H1 2024 5 OUTLOOK 6 APPENDIX 46
Slide 47: Appendix: Overview by Segment and Quarter - Engineering
APPENDIX OVERVIEW BY SEGMENT AND BY QUARTER ENGINEERING Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 (in EUR million) Sales with external third parties 120.4 149.4 144.2 167.2 580.9 142.1 138.6 153.4 165.5 599.6 129.4 136.7 EBITDA 21.1 18.5 23.1 29.9 92.6
Slide 48: Appendix: Overview by Segment and Quarter - Infrastructure
APPENDIX OVERVIEW BY SEGMENT AND BY QUARTER INFRASTRUCTURE Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 (in EUR million) Sales with external third parties 139.5 154.5 152.5 139.5 586.0 141.5 149.8 153.4 137.5 582.2 131.9 144.9 EBITDA 22.1 25.4 26.1 14.9 8
Slide 49: Appendix: Overview by Segment and Quarter - Materials
APPENDIX OVERVIEW BY SEGMENT AND BY QUARTER MATERIALS Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 (in EUR million) Sales with external third parties 156.5 165.8 162.1 152.4 636.8 166.8 164.7 152.8 135.6 619.9 148.6 147.2 EBITDA 21.0 25.9 25.5 20.0 92.4 2
Slide 50: Engineering: Overview of Key Figures
ENGINEERING OVERVIEW OF KEY FIGURES (in EUR million) H1 2024 H1 2023 ∆ in % GUIDANCE AUG 2024 Sales with external third parties 266.1 280.7 -5.2 EBITDA 30.1 41.8 -28.0 − Sales slightly decreasing in % of sales 11.3 14.9 -3.6 pp − EBIT strongly decreasing Depreciation and amortisation -16.2 -15.9 -1.
Slide 51: Infrastructure: Overview of Key Figures
INFRASTRUCTURE OVERVIEW OF KEY FIGURES (in EUR million) H1 2024 H1 2023 ∆ in % GUIDANCE AUG 2024 Sales with external third parties 276.8 291.3 -5.0 EBITDA 43.0 37.8 13.8 − Sales slightly decreasing in % of sales 15.5 13.0 2.5 pp − EBIT strongly increasing Depreciation and amortisation -13.3 -12.7 -4
Slide 52: Materials: Overview of Key Figures
MATERIALS OVERVIEW OF KEY FIGURES (in EUR million) H1 2024 H1 2023 ∆ in % GUIDANCE AUG 2024 Sales with external third parties 295.8 331.5 -10.8 EBITDA 41.8 52.3 -20.1 − Sales decreasing in % of sales 14.1 15.8 -1.7 pp − EBIT strongly decreasing Depreciation and amortisation -13.9 -14.2 2.1 of which
Slide 53: INDUS Portfolio Companies - Engineering
INDUS PORTFOLIO COMPANIES ENGINEERING COMPANIES DESCRIPTION LOCATIONS Robotic hands and automation systems for manufacturers Overath (DE), Plymouth (US) Specialist in logistics and materials flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmalkalden (DE) Burbach (DE), Barcelona (ES), Burli
Slide 54: INDUS Portfolio Companies - Infrastructure
INDUS PORTFOLIO COMPANIES INFRASTRUCTURE COMPANIES DESCRIPTION LOCATIONS Anchor and reinforcement technology Dielsdorf (CH), Cologne (DE), Lauchhammer (DE), Rossens (CH) Mudau (DE), Grand Rapids (US), Ergene/Tekirdag (TR), Nuenen (NL), Heating and air conditioning systems for vehicles Weert (NL) Anc
Slide 55: INDUS Portfolio Companies - Materials
INDUS PORTFOLIO COMPANIES MATERIALS COMPANIES DESCRIPTION LOCATIONS Carbide tools for road construction and mining, tunnelling and special civil Aichhalden (DE), Charlotte (US), Taicang (CN) engineering, agriculture, etc. Innovative cold extruded parts, turned parts and screw plugs Hillesheim (DE),
Slide 56: Contact Us
CONTACT US IR/PR Do you have any questions or would you like to contact us personally? Dafne Sanac Nina Wolf Investor Relations Public Relations Tel: +49 (0) 2204-4000-32 Tel: +49 (0) 2204-4000-73 e-mail: investor.relations@indus.de e-mail: presse@indus.de 56
Slide 57: Disclaimer
INDUS HOLDING AG DISCLAIMER This presentation was prepared by INDUS Holding AG (herein INDUS) and is intended for information purposes only. It constitutes neither an offer nor a solicitation to buy or sell securities and cannot be deemed a sufficient or suitable basis for making any decision. All i