Slide 1: Presentation of Results for 9M 2024
PRESENTATION OF RESULTS FOR 9M 2024 Bergisch Gladbach, 12 November 2024
Slide 2: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS 9M 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 2024 5 OUTLOOK 6 APPENDIX 2
Slide 3: Significant Developments 9M 2024
SIGNIFICANT DEVELOPMENTS 9M 2024 DEVELOPMENT TOTALLING AS EXPECTED IN A PERSISTENTLY DIFFICULT ENVIRONMENT − Decline in sales in all segments totalling 6.0% compared to the previous year − Improvement in income in the operating business in Q3 2024 due to positive development in the Engineering and I
Slide 4: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS 9M 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 2024 5 OUTLOOK 6 APPENDIX 4
Slide 5: 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 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 9M 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 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 − Four acquisitions already completed in 2024 − Well-filled M&A pipeline for further growth acquisitions and add-on acquisitions − Attractive goals in future fields − Infrastructure networks − Automation −
Slide 10: Company Acquisitions on Two Levels
COMPANY 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 an
Slide 11: Revitalised M&A Pipeline
REVITALISED M&A PIPELINE HIGH 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 INFRASTRUCT
Slide 12: Strengthening the Portfolio Structure – Latest News
STRENGTHENING THE PORTFOLIO STRUCTURE – LATEST NEWS AUGUST 2024: INDUS ACQUIRES DECKMA − DECKMA - a system provider for technical marine equipment specialising in lighting and fire alarm systems, automation solutions and corrosion protection technology for ships − Headquarters in Rosengarten (Hambur
Slide 13: Driving Innovation
DRIVING INNOVATION INDUS KI-SPRINT CONTINUOUS TRAINING POTENTIAL WORKSHOP FINANCING OF PROJECTS KI & DATA SCIENCE AI & LANGUAGE DEMYSTIFIED INDUS Innovation Fraunhofer IAIS Promotion Bank TU Munich AI Lab 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 Locally - INDUS International
GLOBAL THINKING, ACT LOCALLY - INDUS INTERNATIONAL 15
Slide 16: Focus on Internationalisation
FOCUS ON INTERNATIONALISATION INDUS SUPPORTS THE DEVELOPMENT OF INTERNATIONAL LOCATIONS PORTFOLIO COMPANIES SUPPORT FROM INDUS Building and Support through International growth Provision of strengthening training courses Growth through legal and other the network of Marketing and sales add-on acquis
Slide 17: Focus on Internationalisation
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
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 9M 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 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
ENGINEERING THREE NEW ADDITIONS IN 2024 − Sales down by 3.6% on the previous year; organic decline of 4.2% CURRENT INDUSTRY TREND due to less strong business with sorting plants, cleanroom systems and packaging technology; inorganic growth of 0.6% Sentiment in the Engineering sector continues to det
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 %) -3.6% 434.2 418.6 12.2% 9.1% 8.7% 6.6% 53.1 39.7 36.4 27.6 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 PPA depreciation Impairments 24
Slide 25: Engineering – Order Development
ENGINEERING ORDER DEVELOPMENT INCOMING ORDERS (in EUR million) ORDER BACKLOG (in EUR million) Stable incoming orders of EUR 398.1 million in 9M 2024 compared to EUR 404.4 million in the -1.6% +2.3% previous year 404.4 398.1 385.4 394.3 Order backlog as at 30 September 2024 at EUR 394.3 million after
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 – Operating Income Up
INFRASTRUCTURE OPERATING INCOME (EBIT) UP ON PREVIOUS YEAR − Sales down by 4.4% on the previous year; organic decline of 7.3%; CURRENT INDUSTRY TREND inorganic growth of 2.9% (QUICK, GRIDCOM) Year-on-year decline in sales (in real terms) in the main − Adjusted EBITA margin increased from 10.8% to 12
Slide 28: Infrastructure – Good Margin Development
INFRASTRUCTURE GOOD MARGIN DEVELOPMENT WITH DECLINING BUSINESS EBIT (in EUR million) Adjusted EBITA (in EUR million) SALES (in EUR million) EBIT margin (in %) Margin of adjusted EBITA (in %) -4.4% 444.7 425.2 12.5% 10.2% 10.8% 8.3% 43.5 48.2 53.2 36.9 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024
Slide 29: Infrastructure – Order Development
INFRASTRUCTURE ORDER DEVELOPMENT INCOMING ORDERS (in EUR million) ORDER BACKLOG (in EUR million) Incoming orders of EUR 417.2 million in 9M +2.9% -4.9% 2024 after EUR 405.4 million in the previous year 405.4 417.2 172.1 163.6 Order backlog of EUR 163.6 million as at 30 September 2024 after EUR 172.1
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 – Cyclical Decline in Volumes and Prices
MATERIALS CYCLICAL DECLINE IN VOLUMES AND PRICES IN METALPROCESSING COMPANIES − Sales down 9.6% on the previous year due to the weakening CURRENT INDUSTRY TREND economy in the metal industry, the purchasing restraint and correspondingly higher price pressure; in line with the market Continously high
Slide 32: Materials – Declining EBIT Margin
MATERIALS DECLINING EBIT MARGIN EBIT (in EUR million) Adjusted EBITA (in EUR million) SALES (in EUR million) EBIT margin (in %) Margin of adjusted EBITA (in %) -9.6% 484.4 12.0% 437.8 10.4% 9.5% 8.7% 50.5 58.1 38.3 41.5 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 PPA depreciation Impairments 32
Slide 33: Materials – Order Development
MATERIALS ORDER DEVELOPMENT INCOMING ORDERS (in EUR million) ORDER BACKLOG (in EUR million) Incoming orders 9M 2024 almost stable at EUR 404.5 million after EUR 419.7 million in the -3.6% -21.7% previous year Order backlog as at 30 September 2024 419.7 404.5 153.3 at EUR 120.0 million after EUR 153.
Slide 34: Sales by Segment 9M 2024
SALES BY SEGMENT 9M 2024 SALES IN ALL SEGMENTS DECLINING ENGINEERING INFRASTRUCTURE MATERIALS -9.6% -3.6% -4.4% 484.4 434.2 418.6 444.7 425.2 437.8 Sales (in EUR million) 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 GUIDANCE NOV 2024: GUIDANCE NOV 2024: GUIDANCE NOV 2024: Slight decline in sales
Slide 35: EBIT and EBIT Margin per Segment 9M 2024
EBIT AND EBIT MARGIN PER SEGMENT 9M 2024 SIGNIFICANT INCREASE IN THE INFRASTRUCTURE SEGMENT ENGINEERING INFRASTRUCTURE MATERIALS -24.2% +17.9% -30.5% 50.5 43.5 39.7 36.9 38.3 27.6 EBIT (in EUR million) 10.2% 10.4% 8.7% 9.1% 8.3% 6.6% 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 GUIDANCE NOV 2024:
Slide 36: EBITA (Adjusted) per Segment 9M 2024
EBITA (ADJUSTED) PER SEGMENT 9M 2024 GOOD DEVELOPMENT IN THE INFRASTRUCTURE SEGMENT ENGINEERING INFRASTRUCTURE MATERIALS -28.6% -31.5% -9.4% 53.2 58.1 53.1 48.2 EBITA adjusted (in EUR million) 41.5 12.2% 36.4 12.5% 12.0% 10.8% 8.7% 9.5% 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 PPA depreciatio
Slide 37: INDUS in Figures – Key Figures 9M 2024
INDUS IN FIGURES KEY FIGURES 9M 2024 SALES EBIT / EBIT margin Adjusted EBITA / margin (in EUR million) (in EUR million) (in EUR million) -6.0% -18.0% -21.2% 1,363.8 116.9 149.2 95.9 117.6 1,282.2 8.6% 7.5% 10.9% 9.2% 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 PPA depreciation Impairments 37
Slide 38: INDUS in Figures – Working Capital and Investments
INDUS IN FIGURES KEY FIGURES 9M 2024 WORKING CAPITAL INVESTMENTS (in EUR million) (in EUR million) +8.3% 505.6 59.3 466.9 45.7 8.9 31.0 36.8 28.3 9M 2023 9M 2024 31.12.2023 30.09.2024 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 9M 2024 FREE CASH FLOW NET DEBT EQUITY RATIO (in EUR million) (in EUR million) (in %) -32.2% +11.2% +0.6 pp 106.1 562.8 37.3 37.9 506.2 71.9 9M 2023 9M 2024 31.12.2023 30.09.2024 31.12.2023 30.09.2024 39
Slide 40: Development of Free Cash Flow
DEVELOPMENT OF FREE CASH FLOW FREE CASH FLOW WITHIN EXPECTATIONS Free cash flow developed as expected in the financial in EUR million 9M 2024 9M 2023 year. Operating cash flow from continuing business Free cash flow of the INDUS Group in the first nine 92.8 128.7 areas months totalling EUR 71.9 mill
Slide 41: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS 9M 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 2024 5 OUTLOOK 6 APPENDIX 41
Slide 42: Economic Environment - Outlook for 2024
ECONOMIC ENVIRONMENT - OUTLOOK FOR 2024 OUTLOOK IN GERMANY CONTINUES TO BE NEGATIVE − Continued positive trends in the global economy, but considerable differences in the pace of growth between the regions − Signs of a slight slowdown in the US economy, but still robust in total − European economic
Slide 43: Adjusted Guidance for the Segments 2024
ADJUSTED GUIDANCE FOR THE SEGMENTS 2024 LACK OF IMPULSES UNDER THE CURRENT FRAMEWORK CONDITIONS Segment ENGINEERING INFRASTRUCTURE MATERIALS Guidance Guidance Guidance 2023 2023 2023 Nov 2024 Nov 2024 Nov 2024 Slightly Slightly Sales (in EUR million) 599.6 582.2 619.9 Decreasing decreasing decreasin
Slide 44: Adjusted Guidance for the 2024 Group
ADJUSTED GUIDANCE FOR THE 2024 GROUP (NOVEMBER 2024) EBIT GUIDANCE ADJUSTED DUE TO IMPAIRMENT FOLLOWING SCHEDULED IMPAIRMENT TEST GROUP Guidance 2023 Nov 2024 Sales (in EUR billion) 1.80 1.70 -1.80 EBIT (in EUR million) 149.6 115 – 125 EBIT margin (in %) 8.3 7.0 to 8.0 Free cash flow (in EUR million
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 9M 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - 9M 2024 5 OUTLOOK 6 APPENDIX 46
Slide 47: Overview by Quarter for the Group
APPENDIX OVERVIEW BY QUARTER FOR THE GROUP INDUS Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 (in EUR million) 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 Sales with external third parties 416.5 469.9 458.8 459.0 1,804.1 450.8 453.3 459.7 438.6 1,802.4 410.1 429.0 443.1 EBITDA 61.4 67
Slide 48: Overview by Segment and Quarter – Engineering
APPENDIX OVERVIEW BY SEGMENT AND BY QUARTER ENGINEERING Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 (in EUR million) 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 Sales with external third parties 120.4 149.4 144.2 167.2 580.9 142.1 138.6 153.4 165.5 599.6 129.4 136.7 152.5 EBITDA 21.1 18.5
Slide 49: Overview by Segment and Quarter – Infrastructure
APPENDIX OVERVIEW BY SEGMENT AND BY QUARTER INFRASTRUCTURE Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 (in EUR million) 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 Sales with external third parties 139.5 154.5 152.5 139.5 586.0 141.5 149.8 153.4 137.5 582.2 131.9 144.9 148.4 EBITDA 22.1 25
Slide 50: Overview by Segment and Quarter – Materials
APPENDIX OVERVIEW BY SEGMENT AND BY QUARTER MATERIALS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 (in EUR million) 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 Sales with external third parties 156.5 165.8 162.1 152.4 636.8 166.8 164.7 152.8 135.6 619.9 148.6 147.2 142.0 EBITDA 21.0 25.9 25
Slide 51: Engineering – Overview of Key Figures
ENGINEERING OVERVIEW OF KEY FIGURES (in EUR million) Q3 2024 Q3 2023 ∆ in % GUIDANCE NOV 2024 Sales with external third parties 152.5 153.4 -0.6 EBITDA 22.2 26.5 -16.2 − Slightly decreasing in sales in % of sales 14.6 17.3 - − EBIT strongly decreasing Depreciation/amortization -8.5 -12.7 33.1 of whi
Slide 52: Infrastructure – Overview of Key Figures
INFRASTRUCTURE OVERVIEW OF KEY FIGURES (in EUR million) Q3 2024 Q3 2023 ∆ in % GUIDANCE NOV 2024 Sales with external third parties 148.4 153.4 -3.3 EBITDA 26.0 25.8 0.8 − Slightly decreasing in sales in % of sales 17.5 16.8 - − EBIT slightly increasing Depreciation/amortization -12.2 -14.0 12.9 of w
Slide 53: Materials – Overview of Key Figures
MATERIALS OVERVIEW OF KEY FIGURES (in EUR million) Q3 2024 Q3 2023 ∆ in % GUIDANCE NOV 2024 Sales with external third parties 142.0 152.8 -7.1 EBITDA 19.0 26.0 -26.9 − Decreasing in sales in % of sales 13.4 17.0 - − EBIT strongly decreasing Depreciation/amortization -8.6 -13.5 36.3 of which PPA depr
Slide 54: 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 54
Slide 55: INDUS Portfolio Companies – Engineering (1/2)
INDUS PORTFOLIO COMPANIES ENGINEERING (1/2) 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) Lighting, fire detection syst
Slide 56: INDUS Portfolio Companies – Engineering (2/2)
INDUS PORTFOLIO COMPANIES ENGINEERING (2/2) COMPANIES DESCRIPTION LOCATIONS Garching (DE), Dresden (DE), Mansfield (GB), Mérignac (FR), Seoul (KR), Inertgas glovebox systems for industry and research Shanghai (CN), Stratham (US) Hanover (DE), Farnham (GB), Montesson (FR), Peking (CN), Suzhou Measure
Slide 57: 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 58: 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 59: 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