Indus Holding Ag · XETR:INH
Indus — Q1 2024 Earnings Presentation
53 slides from Indus's earnings presentation, May 14, 2024
Slide 1: Presentation of Income for Q1 2024
PRESENTATION OF INCOME FOR Q1 2024 Bergisch Gladbach, 14 May 2024
Slide 2: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS Q1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - Q1 2024 5 OUTLOOK 6 APPENDIX 2
Slide 3: Significant Developments Q1 2024
SIGNIFICANT DEVELOPMENTS Q1 2024 CYCLICAL WEAKNESS AS EXPECTED CLEARLY NOTICEABLE − First quarter performance in line with expectations − Decline in sales of 9% due to operational weakness in all segments − EBIT margin of 6.5% (previous year: 9.9%) due to EBIT decline in the Engineering and the Mate
Slide 4: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS Q1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - Q1 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 They can evolve within a Shareholders invest in a secure framework and receive managed portfolio of important input and support technology-oriented industrial to do so. PORTFOLIO companies in the SME sector of SHAREHOLDERS COMPANI
Slide 7: 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 "Corporate ESG Performance" and also "Prime" status − Leading position in the international peer group of "Financials / Multi-Sector Holdings".
Slide 8: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS Q1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - Q1 2024 5 OUTLOOK 6 APPENDIX 8
Slide 9: PARKOUR Perform
PARKOUR PERFORM STRATEGIC INITIATIVES THAT MOVE US FORWARD 1 2 3 4 9
Slide 10: Strengthening the Portfolio Structure
STRENGTHENING THE PORTFOLIO STRUCTURE 2024 WITH ATTRACTIVE ACQUISITION OPPORTUNITIES FOR INDUS − M&A budget of EUR 70 million sets ambitious target for 2024 − Well-filled M&A pipeline for growth acquisitions and add-on acquisitions − Attractive targets in future fields − Infrastructure networks − Au
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 companies of INDUS (1. Level) (2. Level) expand the INDUS portfolio with new strengthen the portfolio company through competencies and products prod
Slide 12: Driving Innovation
DRIVING INNOVATION [INDUS] AI-SPRINT CONTINUED EDUCATION POTENTIALS WORKSHOP FUNDING OF PROJECTS AI & DATA SCIENCE AI & LANGUAGE DEMYSTIFIED INDUS Innovation Development Bank TU München AI Lab Fraunhofer IAIS 6 sprint projects, 11 portfolio companies 5 portfolio companies total funds of EUR 173 thou
Slide 13: Improving Performance
IMPROVING PERFORMANCE LOGIC OF THE EXCELLENCE INITIATIVES Strategic potential Improving − Market attraction Performance − Competitive position Key leverage Wasted Operational Excellence Optimal future high potential viability Essential lever Market Excellence Lever both Market and Operational Excell
Slide 14: Internationalization
INTER- NATIONAL- IZATION 14
Slide 15: Internationalization
INTERNATIONALIZATION INDUS' FOCUS ON THE INTERNATIONAL ACTIVITIES OF THE PORTFOLIO COMPANIES − Recent portfolio activities in the USA − AURORA: Strong expansion of US manufactring facility for new US customers − FS-BF: Establishment of a US production facility together with a major European customer
Slide 16: Internationalization
INTERNATIONALIZATION INDUS SUPPORTING ITS PORTFOLIO COMAPNIES WITH INTERNATIONAL EXPANSION − Support by INDUS in setting up international locations for portfolio companies − Establishment and strengthening of the network of portfolio companies active in the same locations − Support through training
Slide 17: Driving Sustainability
DRIVING SUSTAINABILITY SIGNIFICANT DECREASE IN GREENHOUSE GAS EMISSIONS − Energy efficiency measures paying out in 2023 − INDUS sustainability development bank encouraging significant activities − In 2023: five projects granted, total CapEx of EUR 1.7 million, grant volume 53% 4 STRIVING FOR SUSTAIN
Slide 18: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS Q1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - Q1 2024 5 OUTLOOK 6 APPENDIX 18
Slide 19: Sales by Segment Q1 2024
SALES BY SEGMENT Q1 2024 SALES DECLINING IN ALL SEGMENTS ENGINEERING INFRASTRUCTURE MATERIALS -10.9% -8.9% -6.8% 166.8 142.1 141.5 148.6 129.4 131.9 Sales (in EUR million) Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 GUIDANCE 2024: GUIDANCE 2024: GUIDANCE 2024: Slight increase in sales Slight inc
Slide 20: EBIT per Segment Q1 2024
EBIT PER SEGMENT Q1 2024 DIFFERENT DYNAMICS IN ENGINEERING AND MATERIALS VS. INFRASTRUCTURE ENGINEERING INFRASTRUCTURE MATERIALS -41.3% -53.2% +6.5% 20.1 EBIT (in EUR million) 15.6 10.7 11.4 11.8 7.3 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 GUIDANCE 2024: GUIDANCE 2024: GUIDANCE 2024: EBIT de
Slide 21: EBIT and EBIT Margin per Segment Q1 2024
EBIT AND EBIT MARGIN PER SEGMENT Q1 2024 DIFFERENT DYNAMICS IN ENGINEERING AND MATERIALS VS. INFRASTRUCTURE ENGINEERING INFRASTRUCTURE MATERIALS -41.3% -53.2% 12.1% 11.0% +6.5% 7.6% 8,6% 20.1 7.9% EBIT (in EUR million) 15.6 5.6% 10.7 11.4 11.8 7.3 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 GUID
Slide 22: EBITA (Adjusted) per Segment Q1 2024
EBITA (ADJUSTED) PER SEGMENT Q1 2024 SOLID DEVELOPMENT IN THE INFRASTRUCTURE SEGMENT ENGINEERING INFRASTRUCTURE MATERIALS EBITA adjusted (in EUR million) -44.9% -40.4% +8.5% 18.5 20.8 10.2 11.8 12.8 12.4 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 22
Slide 23: EBITA (Adjusted) per Segment Q1 2024
EBITA (ADJUSTED) PER SEGMENT Q1 2024 SOLID DEVELOPMENT IN THE INFRASTRUCTURE SEGMENT ENGINEERING INFRASTRUCTURE MATERIALS 13.0% 12.5% 9.7% EBITA adjusted (in EUR million) 7.9% 8.3% 8.3% -44.9% -40.4% +8.5% 18.5 20.8 10.2 11.8 12.8 0.7 12.4 2.9 1.1 1.4 0.6 2.9 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023
Slide 24: INDUS in Figures: Key Figures Q1 2024
INDUS IN FIGURES KEY FIGURES Q1 2024 SALES* EBIT* / EBIT margin* Adjusted EBITA* / margin* (in EUR million) (in EUR million) (in EUR million) -9.0% -40.4% -36.4% 450.8 44.8 49.5 410.1 26.7 31.5 9.9% 6.5% 11.1% 7.7% Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 PPA depreciation * from continuing op
Slide 25: INDUS in Figures: Working Capital and Investments
INDUS IN FIGURES KEY FIGURES Q1 2024 WORKING CAPITAL INVESTMENTS (in EUR million) (in EUR million) +3.1% 466.9 481.4 14.7 15.4 6.1 8.9 0.1 0.1 8.5 6.4 31.12.2023 31.03.2024 Q1 2023 Q1 2024 M&A acquisitions M&A Acquisitions Intangibles PPE Intangible assets Property, plant and equipment 25
Slide 26: INDUS in Figures: Free Cashflow, Net Debt, Equity Ratio
INDUS IN FIGURES KEY FIGURES Q1 2024 FREE CASHFLOW* NET DEBT EQUITY RATIO (in EUR million) (in EUR million) (in %) +8.0% -0.3 pp 546.5 37.3% 37.0% 506.2 -18.7% 7.5 6.1 Q1 2023 Q1 2024 31.12.2023 31.03.2024 31.12.2023 31.03.2024 * from continuing operations 26
Slide 27: Development of Free Cash Flow
DEVELOPMENT OF FREE CASH FLOW FREE CASH FLOW BELOW THE PREVIOUS YEAR in EUR million Q1 2024 Q1 2023 − The previous year's free cash flow includes a positive one-time effect from the sale of a building Operating cash flow from continuing totaling EUR 14.4 million. Adjusted for this positive 12.1 1.5
Slide 28: 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 28
Slide 29: Engineering: New Acquisition in Artificial Intelligence
ENGINEERING NEW ACQUISITION IN THE FIELD OF ARTIFICIAL INTELLIGENCE − The 8.9% decline in sales is due to the slowdown in CURRENT INDUSTRY TREND current business in the sorting systems and packaging technology segments. Orders in the mechanical and plant engineering sector continued to decline in Fe
Slide 30: Engineering: EBIT Margin Decreasing
ENGINEERING EBIT MARGIN DECREASING EBIT (in EUR million) EBITA adjusted (in EUR million) SALES (in EUR million) EBIT margin (in %) EBITA margin adjusted (in %) -8.9% 13.0% 142.1 11.0% 129.4 7.9% 5.6% 15.6 18.5 7.3 10.2 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 GUIDANCE 2024 UNCHANGED: GUIDANCE
Slide 31: Infrastructure at a Glance
INFRASTRUCTURE AT A GLANCE MEGATRENDS INFRASTRUCTURE − Mobility and urbanization 14 COMPANIES IN THE SEGMENT − Digitalization − Sustainability FUTURE TOPICS − Infrastructure networks − Infrastructure buildings − Energy efficiency 31
Slide 32: Infrastructure: EBIT Margin Improved
INFRASTRUCTURE EBIT MARGIN IMPROVED BY 1 PERCENTAGE POINT − The decline in sales is mainly due to the supplier areas CURRENT INDUSTRY TREND of house construction and portfolio companies that produce heat pumps. Sentiment in the construction industry is stable, slight improvement of the business clim
Slide 33: Infrastructure: Solid Development Despite Muted Construction
INFRASTRUCTURE SOLID DEVELOPMENT DESPITE MUTED CONSTRUCTION ACTIVITY EBIT (in EUR million) EBITA adjusted (in EUR million) SALES (in EUR million) EBIT margin (in %) EBITA margin adjusted (in %) -6.8% 141.5 9.7% 131.9 8.6% 8.3% 7.6% 10.7 11.4 11.8 12.8 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024
Slide 34: 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 34
Slide 35: Materials: Significantly Calmer Business Activity
MATERIALS SIGNIFICANTLY CALMER BUSINESS ACTIVITY − The 10.9% decline in sales to EUR 148.6 million is due to CURRENT INDUSTRY TREND the weakening economy and the associated reluctance on the part of customers to buy at higher prices. The Sales and turnover in the M+E industry declined again metal pr
Slide 36: Materials: Significantly Calmed Business Activity
MATERIALS SIGNIFICANTLY CALMED BUSINESS ACTIVITY EBIT (in EUR million) EBITA adjusted (in EUR million) SALES (in EUR million) EBIT margin (in %) EBITA margin adjusted (in %) -10.9% 166.8 12.1% 12.5% 148.6 7.9% 8.3% 20.1 20.8 11.8 12.4 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 GUIDANCE 2024 UNC
Slide 37: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS Q1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - Q1 2024 5 OUTLOOK 6 APPENDIX 37
Slide 38: Economic Environment - Outlook for 2024
ECONOMIC ENVIRONMENT - OUTLOOK FOR 2024 GERMANY LAGS BEHIND THE INTERNATIONAL ECONOMIC RECOVERY COURSE − The global economy is currently developing positively, albeit uneven development within the regions. While the US economy has been strong until recently, the economy in the eurozone remains in a
Slide 39: Segment Forecast 2024
SEGMENT FORECAST 2024 CAUTIOUSLY OPTIMISTIC OUTLOOK FOR 2024 Segment ENGINEERING INFRASTRUCTURE MATERIALS Plan Plan Plan 2023 2023 2023 2024 2024 2024 Slightly Slightly Slightly Turnover (in EUR million) 599.6 582.2 619.9 increasing increasing decreasing Strongly EBIT (in EUR million) 57.0 Decreasin
Slide 40: Group Forecast 2024
GROUP FORECAST 2024 STABLE SALES AND EBIT EXPECTED FOR 2024 GROUP Forecast 2023 2024 Turnover (in EUR billion) 1.80 1.85 -1.95 EBIT (in EUR million) 149.6 145 - 165 EBIT margin (in %) 8.3 7.5 to 8.5 Free cash flow (in EUR million) 198.9 >110 2 growth acquisitions and Acquisitions 1 add-on acquisitio
Slide 41: Current Shareholder Structure
CURRENT SHAREHOLDER STRUCTURE ANCHOR SHAREHOLDERS SUPPORT THE COMPANY'S LONG-TERM COURSE SHAREHOLDER STRUCTURE OF INDUS HOLDING AG AS OF 18 MARCH 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
Slide 42: Agenda
AGENDA 1 SIGNIFICANT DEVELOPMENTS Q1 2024 2 INDUS DNA 3 PARKOUR UPDATE 4 INDUS IN FIGURES - Q1 2024 5 OUTLOOK 6 APPENDIX 42
Slide 43: 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 (in EUR million) Revenue 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 EBITDA 21.1 18.5 23.1 29.9 92.6 23.4 18.4 2
Slide 44: 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 (in EUR million) Revenue 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 EBITDA 22.1 25.4 26.1 14.9 88.5 16.8 20.
Slide 45: 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 (in EUR million) Revenue 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 EBITDA 21.0 25.9 25.5 20.0 92.4 27.2 25.1 26.
Slide 46: Engineering: Overview of Key Figures
ENGINEERING OVERVIEW OF KEY FIGURES (in EUR million) Q1 2024 Q1 2023 ∆ in % GUIDANCE 2024 Revenue with external third parties 129.4 142.1 -8.9 EBITDA 15.3 23.4 -34.6 − Sales slightly increasing in % of revenue 11.8 16.5 -4.6pp − EBIT decreasing Depreciation and amortisation -8.0 -7.8 -2.6 of which P
Slide 47: Infrastructure: Overview of Key Figures
INFRASTRUCTURE OVERVIEW OF KEY FIGURES (in EUR million) Q1 2024 Q1 2023 ∆ in % GUIDANCE 2024 Revenue with external third parties 131.9 141.5 -6.8 EBITDA 17.9 16.8 6.5 − Sales slightly increasing in % of revenue 13.6 11.9 1.7pp − EBIT strongly increasing Depreciation and amortisation -6.5 -6.1 -6.6 o
Slide 48: Materials: Overview of Key Figures
MATERIALS OVERVIEW OF KEY FIGURES (in EUR million) Q1 2024 Q1 2023 ∆ in % GUIDANCE 2024 Revenue with external third parties 148.6 166.8 -10.9 EBITDA 18.8 27.2 -30.9 − Sales slightly increasing in % of revenue 12.7 16.3 -3.6pp − EBIT decreasing Depreciation and amortisation -7.0 -7.1 1.4 of which PPA
Slide 49: 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 50: 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 51: 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 52: Contact Us
CONTACT US IR/PR In case of any questions, do not hesitate to contact us! 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 52
Slide 53: 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