H2apex Group Sca · XETR:H2A

H2apex Group Sca — exceet Group — H1 2016 Earnings Presentation

44 slides from H2apex Group Sca's earnings presentation, Aug 31, 2016

  1. Slide 1: Company Presentation

    Company Presentation August 2016 exceet Group | November 2013

  2. Slide 2: Agenda

    ▪ Business Model ▪ Selected Applications & Operational Highlights ▪ Financial Review & Analysis (Continued operations) 1) ▪ Growth Strategy & Group Strengths 1) Please see the additional information in the annex for the financial review & analysis on Total Group Basis 2 exceet Group | August 2016

  3. Slide 3: exceet at a Glance

    EXCEET AT A GLANCE exceet is an international technology group (in EUR million) FY 2014 FY 2015 H1 2015 H1 2016 specialized in development and production Net Sales 185.3 181.6 88.6 86.8 of intelligent, complex and secure electronics EBITDA 19.0 12.7 4.2 3.7 EBITDA Margin 10.3% 7.0% 4.8% 4.2% exceet

  4. Slide 4: exceet Continued Operations

    EXCEET CONTINUED OPERATIONS Continued operations exceet concentrates on further (in EUR million) FY 2015 H1 2015 H1 2016 strengthening its electronics and secure solutions activities Net Sales 136.4 69.1 65.4 EBITDA 9.6 3.6 3.5 Divestment process for smart card EBITDA Margin 7.0% 5.2% 5.4% segment (

  5. Slide 5: Our Activities

    OUR ACTIVITIES Electronic Manufacturing Embedded & Box Building Systems ID Management & Sensors Personalization Printed Circuit Boards Trust Center Value Engineering Applications Devices SOLUTIONS GRC Consulting Connectivity IoT Platform IoT Security 5 exceet Group | August 2016

  6. Slide 6: Our Segments

    OUR SEGMENTS Reporting Segments* Competences End Markets* Applications ECMS Health   Hearing Aids Diagnostic Devices Electronic Components, Modules & Systems Miniaturization  Wearables 70%  Implants  Telematic Infrastructure & Applications 69% Certified Box-  Electronic Health Cards Building 3

  7. Slide 7: Agenda

    ▪ Business Model ▪ Selected Applications & Operational Highlights ▪ Financial Review & Analysis (Continued operations) 1) ▪ Growth Strategy & Group Strengths 1) Please see the additional information in the annex for the financial review & analysis on Total Group Basis 7 exceet Group | August 2016

  8. Slide 8: Body Wearable Electronics

    BODY WEARABLE ELECTRONICS Miniaturized, complex, durable electronics for highest medical requirements Strategic focus Electronics in sophisticated applications  Focus on miniaturized electronics for Hearing Aid EEG sophisticated applications in life supporting systems, diagnostic and Body Area Netw

  9. Slide 9: Body Wearable Electronics

    BODY WEARABLE ELECTRONICS exceet as a full-service partner along the entire value chain Store Wearable Monitor securely Device developed and manufactured by exceet Mobile monitoring APP Secure cloud storage Highlights Advantages for customers / users  exceet will develop and manufacture new body 

  10. Slide 10: Implantable Cardioverter Defibrillator

    IMPLANTABLE CARDIOVERTER DEFIBRILLATOR Development & Production of highly miniaturized, extremely durable PCBs 4-Layer Ridgit-Flex Board by exceet Newest generation of Implantable Cardioverter Defibrillator Description Advantages for customers / users  exceet provides the PCB for a subcutaneous  R

  11. Slide 11: Post Urography System

    POST UROGRAPHY SYSTEM Manufacturing of innovative Medical Device for Neurology, Orthopaedics & Sports Medicine Description  exceet as a partner for development, prototyping, serial production and certification of medical products  Special USB hub with interface to sensors and sensor readers; data

  12. Slide 12: Multi-Channel Optical Transceiver

    MULTI-CHANNEL OPTICAL TRANSCEIVER Fast Data Communication – especially in small spaces Optical Signal Multi-Channel Optical Transceiver Electronic Signal Description Advantages for customers / users  Optical signals are converted to electrical  Reduction of cost and space in the field of informati

  13. Slide 13: Electronics for Building Automation

    ELECTRONICS FOR BUILDING AUTOMATION Modern, user friendly Control Units & Displays for Energy Efficiency Homes Description Advantages for customers / users  Control unit & display  Ventilation in rented apartments can be centrally for ventilating system for controlled ventilation controlled by the

  14. Slide 14: Vending Machines

    VENDING MACHINES Individual Touch Displays & Secure Data Transmission Description  exceet designs, develops and produces robust and fashionable touch displays for vending machines  Comprehensive usability study for customer specific user interface, guaranteeing intuitive handling  exceet provides

  15. Slide 15: IoT Readiness

    IOT READINESS Market Requirements exceet Offers Access-, Personalization- & Payment Solutions Consulting Hardware Software Services  secure authentification & identification  PKI solutions (Public-Key-Infrastructures)  data integrity & confidentiality  HSMs (Hardware-Security-Modules) – implemen

  16. Slide 16: Devices for M2M Solutions

    DEVICES FOR M2M SOLUTIONS exceet communication box complements the control system of car wash installations Description Advantages for customers / users  Communication box  Just in time information about car wash use, > router incl. SIM card for mobil communication detergent consumption and techni

  17. Slide 17: Industrial IoT Solutions

    INDUSTRIAL IoT SOLUTIONS Intelligent & secure networking of machine tools Description Advantages for costumers / users  Selection and realization of a costumer specific  Comprehensive, real-time machine tool data pilot IoT Platform for networking of machine tools available at different locations a

  18. Slide 18: Cards for Any Kind of Industry

    CARDS FOR ANY KIND OF INDUSTRY Banking & Health Loyalty Access & Transport for banking for retail, banking, tourism for public authorities & transportation  Contact and dual interface card  Innovative loyalty, cash-back &  Contactless RFID-based solutions solutions for the Banking area coupon sol

  19. Slide 19: Agenda

    ▪ Business Model ▪ Selected Applications & Operational Highlights ▪ Financial Review & Analysis (Continued operations) 1) ▪ Growth Strategy & Group Strengths 1) Please see the additional information in the annex for the financial review & analysis on Total Group Basis 19 exceet Group | August 2016

  20. Slide 20: Financial Highlights

    FINANCIAL HIGHLIGHTS Continued operations • Revenues are down 5.3% to EUR 65.4 Total Group Basis million ▪ Free Cash Flow EUR (9.1) million (H1 2015: EUR (5.4) million) driven by: ▪ Organic decline: 4.1% ▪ Operational Cash Flow EUR (4.1) million ▪ FX Impact: (1.2%) Free Cash (H1 2015: EUR (2.0) mill

  21. Slide 21: Net Sales Half-year 2016

    NET SALES (in EUR 1’000) (9’062) 1’079 (646) Q2 2016 42’553 33’491 34’570 33’924 Actual IDMS Continued Organic growth Like for like FX Impact Scope changes Actual Q2 2015 Q2 2015 Q2 2015 Q2 2016 Total Group Discontinued Continued Continued Basis operations operations operations Half-year 2016 (19’47

  22. Slide 22: EBITDA Half-year 2016

    EBITDA (in EUR 1’000) (32) (161) 647 Q2 2016 1’734 1’702 1’248 1’087 Actual IDMS Continued Organic growth Like for like FX Impact Scope changes Actual Q2 2015 Q2 2015 Q2 2015 Q2 2016 Total Group Discontinued Continued Continued Basis operations operations operations Half-year 2016 (661) (39) (44) 4’

  23. Slide 23: Net Sales by Countries 2015 (Continued operations)

    NET SALES BY COUNTRIES 2015 (Continued operations) (in EUR 1’000) 7% Germany 24% Switzerland 41% 48% Austria 7% The Netherlands 45% 5% Others 23% 23 exceet Group | August 2016

  24. Slide 24: Net Working Capital (Continued operations)

    NET WORKING CAPITAL (Continued operations) (in EUR million) 70 114,0 120,0 110,2 102,7 103,6 104,7 104,1 110,0 98,3 96,1 60 93,4 92,9 100,0 89,2 91,7 85,9 Trade payables Inventories 81,0 80,0 82,3 90,0 78,9 50 80,0 Other current liabilities 66,7 40 Accrued expenses / deffered income 70,0 60,0 30 Cur

  25. Slide 25: From EBITDA to Free Cash Flow

    FROM EBITDA TO FREE CASH FLOW (Cont. operations) (in EUR 1’000) 648 (2’021) (365) 3’505 (3’877) (5’915) (3’805) Reported EBITDA Non-cash items Taxes paid Interest paid Change in NWC Net Capex Free Cash Flow recorded above EBITDA ■ Free Cash Flow in Q2 2016 EUR (5.9) million versus EUR (6.0) million

  26. Slide 26: Net Debt

    NET DEBT (in EUR 1’000) 98 (85) (92) 5.915 1.052 14’950 9’114 8’062 Actual IDMS Continued Free Cash Flow FX Impact FX Impact on Others Actual Q4 2015 Q4 2015 operations on cash borrowings Q2 2016 Q4 2015 Continued IDMS Total Continued IDMS Total Borrowings 38'200 3'118 41'318 Borrowings 38'821 3'552

  27. Slide 27: Actuals & Medium-Term Targets (Cont. operations)

    ACTUALS & MEDIUM-TERM TARGETS (Cont. operations) Net Sales (EUR million) Organic Growth Rate (%) 22.7% 145,1 135,9 137,0 136,4 12.6% 125,4 11.4% 8.0% 5.0% 3.2% 1.7% 2.5% 0.5% Medium- 38,3 38,8 35,2 (6.0%) term 32,9 35,5 35,3 34,3 31,9 35,6 33,5 33,1 34,2 31,5 33,9 (7.7%) (8.2%) target (10.5%) (8.7%)

  28. Slide 28: Agenda

    ▪ Business Model ▪ Selected Applications & Operational Highlights ▪ Financial Review & Analysis (Continued operations) 1) ▪ Growth Strategy & Group Strengths 1) Please see the additional information in the annex for the financial review & analysis on Total Group Basis 28 exceet Group | August 2016

  29. Slide 29: Growth Strategy

    GROWTH STRATEGY ▪ Exploit fragmented market structure ▪ Leverage customer ▪ Enhance value chain coverage relationships Market Existing Consolidation Customers ▪ Expansion of ▪ Extend customer base technological through new healthcare capabilities applications e.g. Ultra HDI ▪ e.g. medical implants T

  30. Slide 30: Group Strengths

    GROUP STRENGTHS Strong skills in development & manufacturing of miniaturized electronic components, modules & Miniaturization systems Specialist with many years of experience in development and manufacturing of complete medical Health devices and experienced Partner for FDA approvals & certification

  31. Slide 31: is exciting

    is exciting exceet Group | November 2013

  32. Slide 32: Annex

    Annex 32 exceet Group | August 2016

  33. Slide 33: History of exceet

    HISTORY OF EXCEET 2006 2008 2009 2010 2011 2012 2014 2015 Add-on acquisitions Acquisition of Merger with Card Acquisition of Acquisition of Acquisition of Acquisition of Foundation of ECR AG and GS Mikrap AG and Factory Group1) Winter AG and AuthentiDate Inplastor Gmbh Valtronic exceet USA, Inc. Swi

  34. Slide 34: Top Customers (Continued operations)

    TOP CUSTOMERS (Continued operations) Top 10 Customer = 46% of total Sales Selected References Customer Revenue in EUR million CERN PHILIPS COCHLEAR PHONAK Health 14.4 DELPHI RITTAL Industry 9.6 DORNIER ROCHE DIAGNOSTICS FERAG SANDOZ Health 8.2 FRANCE TELECOM SCHAEFFLER Health 8.1 GANTNER SIEMENS GE

  35. Slide 35: Production & Engineering Sites

    PRODUCTION & ENGINEERING SITES ECMS ESS IDMS (Discontinued Operations) Berlin, D 9 1 7 Design, development, Düsseldorf, D industrialization and series Groningen, NL Software, Services (Cloud Services) and production for high-end complex Development & Production Consulting for Secure Business Process

  36. Slide 36: Ownership – Class A Shares

    OWNERSHIP – CLASS A SHARES 1) Acrema AG (Hans Hofstetter) 1.1% exceet Group (treasury shares) 2.2% Eiflia Holdings GmbH 0.7% Argos Funds and Quaero Funds 8.8% Roland Lienau 0.3% Management (MM Reutner, Trommershausen, Wolny) 5.7% Other Shareholder 23.1% Class A Shares: Oranje-Nassau Participaties B.

  37. Slide 37: Ownership - Class B and C Shares

    OWNERSHIP - CLASS B AND C SHARES Class B (Founding) Shares 1) Class C (Earn-Out) Shares 1) 5.21 million Shares 9.0 million Shares Oranje-Nassau Participaties B.V. (Wendel) 89.00% Greenock S.à r.l. (Vorndran Mannheims Capital) 87.30% Prof. Hermann Simon 5.50% Ulrich Reutner 6.05% Roland Lienau 5.50%

  38. Slide 38: Management Team

    MANAGEMENT TEAM 2012 Wolf-Günter Freese Robert Wolny Jan Trommershausen Acting Chief Executive Officer Chief Operating Officer IDMS Chief Operating Officer ECMS & Chief Financial Officer 38 exceet Group | August 2016

  39. Slide 39: Actuals & Medium-Term Targets (Total Group Basis)

    ACTUALS & MEDIUM-TERM TARGETS (Total Group Basis) Net Sales (EUR million) Organic Growth Rate (%) 12.4% 188,8 190,8 10.8% 185,3 181,6 170,5 7.9% 5.5% 5.0% 3.4% 1.9% Medium- (2.4%)(2.2%) term (3.4%) (6.8%) (7.1%) target 50,9 49,0 48,4 44,5 47,2 45,2 46,0 42,6 44,1 48,9 (6.4%) 43,1 47,8 42,5 44,2 (7.9

  40. Slide 40: Consolidated Financials

    CONSOLIDATED FINANCIALS January – June 2015 & 2016 Income Statement (in EUR 1'000) Jan. - Jun. 2016 Jan. - Jun. 2015 Revenue 65'424 69'083 Cost of sales (56'381) (59'135) Gross profit 9'043 9'948 % margin 13.8% 14.4% Distribution costs (4'703) (4'879) Administrative expenses (5'195) (5'761) Other op

  41. Slide 41: Consolidated Financials

    CONSOLIDATED FINANCIALS 31 December 2015 / 30 June 2016 Assets (in EUR 1'000) 30 June 2016 31 December 2015 Tangible assets 28'930 34'425 Intangible assets 43'503 60'944 Deferred tax assets 2'171 1'362 Other non current assets 30 216 Inventories 29'730 30'440 Trade receivables, net 19'004 22'720 Oth

  42. Slide 42: Consolidated Financials

    CONSOLIDATED FINANCIALS January – June 2015 & 2016 Cash Flow Statement (in EUR 1'000) Jan. - Jun. 2016 Jan. - Jun. 2015 Earnings before taxes (10'775) (5'431) Depreciation, amortization & impairment charges 13'560 5'260 Interest income / (expenses), net 514 525 Change in fair value in financial inst

  43. Slide 43: Consolidated Financials (Total Group Basis)

    CONSOLIDATED FINANCIALS (Total Group Basis) January – June 2015 & 2016 Segment Information ECMS ESS Corporate & Continued IDMS Eliminations Group Others Operations Consolidation Jan. - Jun. Jan. - Jun. Jan. - Jun. Jan. - Jun. Jan. - Jun. Jan. - Jun. Jan. - Jun. (in EUR 1'000) 2016 2015 2016 2015 201

  44. Slide 44: Disclaimer & Contact

    DISCLAIMER & CONTACT This presentation contains forward-looking statements based on beliefs of exceet Group SE management. Such statements reflect current views of exceet Group SE with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially

exceet Group — H1 2016 Earnings Presentation on 6ix