Business figures for the first half year of 2021 - In Transition - GESCO AG
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Business figures for the
I n Tr a n s i t i o n first half year of 2021
Wuppertal, 24 August 2021
Agenda 01 GESCO AT A GLANCE 02 FIRST HALF YEAR 2021 03 GESCO ON THE STOCK MARKET 04 APPENDIX GESCO AG - Business figures for the first half year of 2021 2
01 GESCO AT A GLANCE
GESCO AT A GLANCE
GESCO – Facts and figures
Technology-leading Mittelstand in one share
1989 11
YEAR OF FOUNDATION PORTFOLIO COMPANIES
1998 100%
IPO FOCUS ON SMEs
Approx. € 400 m 1,744
GROUP SALES 2020
EMPLOYEES (30/06/2021)
(CONTINUED OPERATIONS)
8 – 10% OF WHICH 22
TAGETED EBIT MARGIN HOLDING EMPLOYEES (30/06/2021)
GESCO AG - Business figures for the first half year of 2021 4
GESCO AT A GLANCE
GESCO – Segments Resources
Technology
Cyclical markets, focus on niches
and customer service
Production Process Customer-specific solutions
Technology for primary materials loading
technology for gases and liquids
Dynamic markets with
a high degree of innovation
Automation and process solutions
in mechanical and plant engineering
Healthcare & Infrastructure
Technology
GESCO AG
Robust markets with
low economic fluctuations Balanced, robust and resilient portfolio
with anchor and basic investments
Assemblies, components
and consumables Methodological competency and expertise
bundled in Excellence programmes
GESCO AG - Business figures for the first half year of 2021 … segments geared towards end markets 5
GESCO AT A GLANCE
The business model
11 operating subsidiaries, growing internationally,
under the GESCO AG umbrella
GESCO AG
Dynamic, independent units that benefit from the best
practice of a strong group
Long-term investor secures
future viability Innovative technology “Made in Germany” for the
global markets
Acquisition of industrial SMEs and long-term
development into hidden champions
GESCO Group
Purchases made, usually majority as in 100%, within
the context of succession planning
Industrial group shaped by
Methodological competency, expertise and joint pursuit SMEs with market and
of added value technology leaders
GESCO AG - Business figures for the first half year of 2021 … the best SMEs in one share 6
GESCO AT A GLANCE
M&A
GESCO Network
Search Profile
always on the lookout continues to generate
for future Sales good deal flow
hidden champions € 20 million to € 100 million
for direct investments
Add-ons Direct Approach
with strategic added value selected targets according
for existing companies to own market analyses
starting at € 5 million in sales
GESCO AG - Business figures for the first half year of 2021 … aligned with our target portfolio 7
GESCO AT A GLANCE
NEXT LEVEL
PORTFOLIO HIDDEN
ARCHITECTURE
N E CHAMPIONS
Target portfolio with Innovative niche providers
three core investments with a leading market position
12 basic investments Expand methodological
with substantial size competence and expertise
X T
M&A EXCELLENCE PROGRAMMES
| Growing (an)organically CANVAS – Business Model |
| Stronger focus on add-ons MAPEX |
| Acquire larger companies OPEX |
| Network generates constant deal flow LEADEX |
GESCO AG - Business figures for the first half year of 2021 … an integrated concept 8
02 FIRST HALF YEAR 2021
FIRST HALF YEAR 2021
GESCO expands medical technology portfolio
Acquisition of UMT Group on 15 June 2021 Sales 2020A (€m): approx. 20
Employees: approx. 60
United MedTec Continents: 3
Holding GmbH Products: 450
100 % 100 % Hanover Active patents: 14
Bückeburg
Production area (m²): > 3,000
Porta Westfalica
W. Krömker Tragfreund
GmbH GmbH
1976 Founded by W. Krömker
Majority stake taken over by
2012 VR Equitypartner & Invicto
2014 First successful FDA inspection
Takeover of Tragfreund GmbH
2015 New management
SKYDOQ® series
2017 Red Dot Design Award
2021 100% takeover by GESCO
GESCO AG - Business figures for the first half year of 2021 10FIRST HALF YEAR 2021 W. Krömker GmbH Product portfolio GESCO AG - Business figures for the first half year of 2021 11
FIRST HALF YEAR 2021
UMT Group
Integration of the new acquisition into GESCO Group
United MedTec
Holding GmbH
80%* 100% 100% 100%
Haseke Haseke W. Krömker Tragfreund
GmbH & Co. KG Beteiligungs-GmbH GmbH GmbH
Financial year 2020 General partner company Financial year 2020 Licensing company
Sales: € 12.1 million Sales: approx. € 20 million for Krömker
Employees: 69 Employees: approx. 60 (SKYDOQ® series)
UMT Group
Substantial basic investment
to become a hidden champion
*Short-term increase to 100%. in the attractive segment of medical technology
GESCO AG - Business figures for the first half year of 2021 12FIRST HALF YEAR 2021
Continued upward trend in H1 2021
High demand level and positive effects on earnings from OPEX activities
Book-to-bill ratio of 1.20 (vs. 1.06) Better utilisation and Depreciation Financial result Earnings per share
adjusted capacities reduced improved € 0.76 (vs. € -0.23)
(-17.5%)
Efficiency gains through Incl. discontinued
OPEX activities EBIT margin of 6.7% operations
(vs. 0.2%) € 0.76 (vs. € -1.60)
Material expenditure ratio
59.9% 55.7%
Personnel expendit. ratio
28.3% 24.1%
(in € million; continuing operations)
GESCO AG - Business figures for the first half year of 2021 13FIRST HALF YEAR 2021
Strong growth in Q2 2021
Second quarter exceeds positive developments of the preceding period
Change (YOY)
Q1 +18.8% +10.5% +80.1% +>100% +>100% +>100%
Q2 +57.9% +30.7% +>100% ↑ ↑ ↑
H1 +35.7% +19.9% +>100% +>100% ↑ ↑
(in € million; continuing operations)
↑ = Increase into positive range compared to negative amount in the comparative period.
GESCO AG - Business figures for the first half year of 2021 14FIRST HALF YEAR 2021
Production Process Technology Segment
Stainless steel technology business provides significant contribution
Change (YOY) H1/Q2 2021
Q1 +58.1% +23.8% ↑ Incoming orders doubled, sales slightly increased
Q2 +>100% +10.5% - EBIT slightly negative in Q2 2021
H1 +96.0% +16.8% ↑ Accumulated earnings and EBIT margin positive
Positive contribution from stainless steel technology
Weak first half year for capital goods
significant increase in incoming orders in Q2 2021!
EBIT margin
2021 (2020)
Q1: 8.8% (neg.) Outlook on 2021
Q2: neg. (neg.)
H1: 4.0% (neg.)
Slight recovery in mechanical and plant engineering
High-margin growth in stainless steel processing
Revenue and earnings contributions from capital goods in H2 2021
Earnings relieved by restructuring in previous year
(in € million; continuing operations)
↑ = Increase into positive range compared to negative amount in the comparative period.
GESCO AG - Business figures for the first half year of 2021 15FIRST HALF YEAR 2021
Resource Technology segment
High demand continues across the board
Change (YOY) H1/Q2 2021
Q1 +10.9% +14.0% +>100% Strong recovery in demand, especially in Q2 2021
Q2 +44.7% +35.2% +>100% Significant increase in sales and earnings
H1 +25.4% +23.7% +>100% Earnings and EBIT margin noticeably improved
Positive development supported by all companies
Outlook on 2021
EBIT margin Higher demand in the tool and strip steel segment
2021 (2020)
Q1: 8.8% (4.0%) Good order situation in loading technology
Q2: 10.6% (3.2%)
H1: 9.7% (3.6%)
Positive effects from material price development
Significant increase in sales
Disproportionate rise in earnings
(in € million; continuing
operations)
GESCO AG - Business figures for the first half year of 2021 16FIRST HALF YEAR 2021
Healthcare and Infrastructure segment
Good level of the previous year noticeably exceeded
Change (YOY) H1/Q2 2021
Q1 +20.2% +0.1% +2.9% Significant increase in incoming orders
Q2 +52.0% +30.4% +42.7% Driven by the construction, pharmaceutical and biotech sectors
H1 +34.1% +13.8% +22.3% Sales significantly above good previous year's level
Disproportionate increase in earnings
Strong EBIT margin improved again
Contribution of newly acquired UMT Group not yet material
EBIT margin segment sales incl. UMT +13.8%; excl. UMT +11.5%)
2021 (2020)
Q1: 10.3% (10.0%) Outlook on 2021
Q2: 12.5% (11.2%)
H1: 11.4% (10.7%) Positive sales development at all companies
Overall stable margin
(in € million; continuing
operations)
GESCO AG - Business figures for the first half year of 2021 17FIRST HALF YEAR 2021
Assets and financial position
Solid financial parameters
Balance sheet figures 30/06/2021 31/12/2020 Balance sheet total +8.5% due to acquisition of UMT Group
(in € million)
Comfortable equity base
Total assets 424.1 390.8
Equity 235.8 227.8 Non-current assets increased, i. a. due to increase in intangible
Equity ratio (in %) 55.6 58.3 assets (+€ 28.6 million)
Non-current liabilities 73.4 68.2
Current liabilities 114.9 94.8 Current assets almost unchanged
Cash and cash equivalents 47.1 49.2 Non-current liabilities slightly higher due to increased deferred tax
liabilities (+7.6%)
Net debt 30/06/2021 31/12/2020 Current liabilities slightly higher mainly due to increased trade
(in € million)
payables, advance payments received on orders, other liabilities
Bank liabilities - non-current 38.3 38.2
Bank liabilities - current 43.3 44.4 Current and non-current liabilities to banks hardly changed
Cash and cash equivalents -47.1 -49.2 Strong cash position and low net debt
Net debt - financial institutions 34.5 33.4
Improved cash flow from operating activities (+62.5%)
Lease liabilities 16.2 15.3
Net debt incl. leasing 50.7 48.7 Working capital reduced by € 3.5 million despite higher business
volume (working capital ratio of 33.2% vs. 37.2% as of
31.12.2020)
GESCO AG - Business figures for the first half year of 2021 18FIRST HALF YEAR 2021
Group outlook for 2021 raised
In € million Financial year Financial year
(Outlook prior to M&As/excl. 2021 2020 (continued)
change to scope of consolidation)
Group sales 445 - 465 397.2
Group net income
after minority interest 16.5 - 18.5 5.8
It is impossible to assess the further impact of the coronavirus pandemic.
As a result, expectations may change significantly at short notice.
GESCO AG - Business figures for the first half year of 2021 ... heading for the NEXT LEVEL 1903 GESCO ON THE STOCK MARKET
GESCO ON THE STOCK MARKET
Share price performance
31-12-2020 06-04-2021 30-06-2021 30-07-2021
Closing price and low: € 18.35 High: € 24.20 Closing price: € 20.50 Closing price: € 21.60
(100%) (+31.2%) (+11.7%) (+17.7%)
Source: Bloomberg; share performance indexed.
GESCO AG - Business figures for the first half year of 2021 Portfolio restructuring and economy support share price performance 21GESCO ON THE STOCK MARKET
Share and shareholder structure
ISIN DE000A1K0201
WKN A1K020
Stock market code GSC1
Share capital (31/12/2020) € 10,839,499
Number of shares (31/12/2020) 10,839,499
IPO 24/03/1998
Transparency standard Prime Standard
Year-end price (31/12/2020) € 18.35
Market capitalisation (31/12/2020) € 198.9 m
Free float (24/08/2021) 69.4%
Research/Coverage GSC Research
Pareto Securities
SMC Research
Warburg Research
Indices CDAX Total Index
Prime All Shares
Prime Industrial
Prime Industrial Diversified
Classic All Share
Source: Company Information, as at 24/08/2021.
GESCO AG - Business figures for the first half year of 2021 Stable shareholder structure even in challenging times 22GESCO ON THE STOCK MARKET
Dividend
Dividend policy Financial year 2020
Distribution within the range of 20% to 60% of Group net income Dividend payment suspended for financial year 2020 in line with
after minority interest dividend policy
Range offers flexibility for NEXT LEVEL strategy Decision made due to negative result after minority interest for
financial year 2020
Dividend
in 2022
GESCO AG - Business figures for the first half year of 2021 Dividend policy remains unchanged 23Thank you very much for your attention!
04 APPENDIX
APPENDIX
Financial calendar 2021
In permanent dialogue with the capital market
Date Reporting/event Type/venue
27/04/2021 Accounts press and analysts’ conference Virtual
18/05/2021 Quarterly Statement on Q1 2021 Publication
19/05/2021 Spring Conference (Equity Forum) Virtual
30/06/2021 Annual General Meeting Virtual
24/08/2021 Half-Year Financial Report 2021 Publication
07/09/2021 Zurich Capital Market Conference (ZKK) Zurich
19/11/2021 Quarterly Statement on Q3 2021 Publication
22 - 24/11/2021 German Equity Forum (German Stock Exchange) Virtual
07 - 08/12/2021 Munich Capital Market Conference (MKK) Munich/virtual
GESCO AG - Business figures for the first half year of 2021 26APPENDIX
Shareholder and press contact
We are at your disposal for questions and suggestions
Julia Pschribülla Yvette Gotzmann
Head of Team
Investor Relations & Communications Investor Relations & Communications
Tel +49 (0) 202 24820-18 Tel +49 (0) 202 24820-17
Fax +49 (0) 202 24820-49 Fax +49 (0) 202 24820-49
investorrelations@gesco.de (IR enquiries) • presse@gesco.de (press enquiries)
stimmrechte@gesco.de (voting rights notifications)
GESCO AG - Business figures for the first half year of 2021 27Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by GESCO AG’s management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in GESCO’s public reports which are available at www.gesco.de. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. This presentation does not constitute an offer to sell or a solicitation or offer to buy any securities of the Company, and no part of this presentation shall form the basis of or may be relied upon in connection with any contract or commitment. This presentation is being presented solely for your information and is subject to change without notice. GESCO AG - Business figures for the first half year of 2021 28
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