PRESENTATION OF THE RESULTS FOR THE FIRST NINE MONTHS OF 2020 - Bergisch Gladbach, 12th November 2020 - INDUS Holding AG
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PRESENTATION OF THE RESULTS FOR THE FIRST NINE MONTHS OF 2020 Bergisch Gladbach, 12th November 2020
AGENDA
1 INDUS - OUR DNA
2 PARKOUR - OUR STRATEGY
3 INDUS IN NUMBERS - 9M 2020
4 OUTLOOK
5 INDUS SHARE & DIVIDENDS
6 APPENDIX
2
INTRODUCING THE INDUS BOARD OF MANAGEMENT
BROAD EXPERTISE FROM GERMAN SMES
Dr. Johannes Schmidt Dr. Jörn Großmann Axel Meyer Rudolf Weichert
Chairman of the Board of Management Member of the Board of Management Member of the Board of Management Member of the Board of Management
Member of the Management Board of Member of the Management Board of Member of the Management Board of Member of the Management Board
INDUS Holding AG since January 2006. INDUS Holding AG since January 2019. INDUS Holding AG since October 2017. of INDUS Holding AG since June 2012.
Took over as Chairman of the
Management Board in July 2018.
Responsibility Responsibility Responsibility
Responsibility
Supervision of Investment Companies Supervision of Investment Companies Supervision of Investment Companies
Supervision of Investment Companies
Development Bank Business Development Reporting
Investor Relations
Innovation Investment Finance, Accounting
M&A
Sustainability Production Optimisation Governance, Risk Management,
Public Relations Compliance
Technology Insurance
Human Resources (INDUS) IT (INDUS)
Strategy Taxes (INDUS)
3
INDUS BUSINESS MODEL
WE ARE PASSIONATE ABOUT SMES
WE...
ʜ are the leading specialist in long-term investment
and development in the German SME Sector.
ʜ invest in SME Hidden Champions.
ʜ build on a diversified portfolio of 46 companies in
the German-speaking area.
ʜ ensure growth and stable earnings by a sustainable
corporate strategy.
… BUY, HOLD & DEVELOP
4
INDUS BUSINESS MODEL
GEOGRAPHIC DIVERSIFICATION – INDUS HAS A PRESENCE IN OVER 30 COUNTRIES
Breakdown of revenues by regions
Germany Europe Rest of the world
Employees by regions
Germany Europe Rest of the world
Revenue and employee figures and locations as of 31 Dec. 2019,
Europe = EU and Switzerland. Revenue (2019): 1,742.8 EURm. Employees
(2019): 10,856 5
M&A PROCESS AT INDUS
INVESTMENTS IN SECTORS OF THE FUTURE
Wanted: SMEs with a long-term perspective No restructuring No start-ups
Financial criteria Operational criteria
OUR PROMISE
• Revenues EUR 20 - 100 million • Broad customer structure
• Double-digit profit margin • Niche positioning
• Equity ratio > 30% • Own industrial value creation
• Cash flow orientation • Growth prospects, also internationally • Preservation of life’s work
• Low/no bank liabilities
• Preservation of the corporate
Industries of the future Fields of the future culture
• Automation, measurement and control technology • Industry 4.0 / digitization
• Infrastructure and logistics technology • Intelligent logistics/infrastructure • Gradual management transition
• Construction technology • Innovative construction technology
• Security technology • Public and private security
• Medical engineering for the ageing society • Medical engineering for the ageing society • Further development of the
• Energy and environmental technology • GreenTech company
BUY HOLD DEVELOP
6
LONG-TERM HOLDING PERSPECTIVE ENSURES STABILITY
BALANCED PORTFOLIO STRUCTURE BY YEAR, REVENUE AND REGION
INDUS is a long-term investor
Portfolio structure by years: Portfolio structure by revenues: Portfolio structure by regions:
74% > 10 years in the portfolio EUR 10 – 100 million Focus on German SMEs
15 17 Up to EUR 15
27 Germany
1 to 5 years (15/7) million
11
5 to 10 years (11/5) EUR 15 to 25 European Union
million 51 Rest of the world
More than 10 years 55 28 More than EUR 25
74 (74/34)
million 22
(in %/ number of portfolio companies) (in %) (in % by revenue)
“Buy, hold, develop” implies a long-
INDUS considers itself to be one of the In a first step, INDUS exclusively
term promise to hold the companies
leaders among Germany’s listed and non- acquires majority shareholdings in
while at the same time increasing their
listed holding companies. German or Swiss SMEs
value.
7
CREATING SUSTAINABLE VALUE
CONTINUE TO DELIVER ON OUR PROMISES
Focus on sustainable and long-term corporate development in Germany’s manufacturing SME sector
SHAREHOLDERS SELLING Dr. Johannes
ENTREPRENEURS Schmidt (CEO)
They have the opportunity to
invest in a broadly diversified
managed portfolio of German-
language SMEs – with a reliable “We don’t run a company from
dividend from a stable balance above, we support it as a partner
sheet. by providing effective
stimulation.”
PORTFOLIO CUSTOMERS,
COMPANIES EMPLOYEES,
They get a secure framework for
SOCIETY AND THE We are a sustainable member of
continuous development in fast- ENVIRONMENT society.
changing markets.
8
INDUS BUSINESS MODEL
CONTENT DIVERSIFICATION AS A STRATEGIC CORE ELEMENT
REVENUE SHARES OF THE SEGMENTS (BASIS:9M 2020)
25.4% 17.0% 22.4% 9.2% 26.0%
Construction/ Automotive Engineering Medical Engineering Metals Technology
Infrastructure 11 Technology 12 portfolio and Life Science 10 portfolio
portfolio companies 8 portfolio companies companies 5 portfolio companies companies
DIVERSIFIED PORTFOLIO AS A STRATEGIC CORE ELEMENT
9
AGENDA
1 INDUS - OUR DNA
2 PARKOUR - OUR STRATEGY
3 INDUS IN NUMBERS - 9M 2020
4 OUTLOOK
5 INDUS SHARE & DIVIDENDS
6 APPENDIX
10STRATEGY
THE NAME STANDS FOR GREATER AGILITY
11OUR GOALS FOR THE NEXT YEARS
CONTINUE TO DEVELOP THE INVESTMENT PORTFOLIO
INDUS offers its shareholders a managed portfolio of attractive medium-sized
companies. We therefore want to further develop the INDUS portfolio to ensure that
we will have a sustainable and viable portfolio in the future.
1. STRENGTHEN THE PORTFOLIO STRUCTURE
The right
ʜ Accelerate acquisitions in industries of the future
ʜ Review the possibility to sell selected companies FUTURE
Implementation of the “Intermediate Sprint" package
of measures for portfolio optimization
12PACKAGE OF MEASURES
FOCUS: PORTFOLIO OPTIMIZATION & SUSTAINABLE EARNINGS IMPROVEMENT
Start
Mid
2020
13INDUS KEY FIGURES – ONE-TIME EFFECTS (UPDATE)
“INTERIM SPRINT” PROGRAM OF MEASURES AS OF 30 SEPT. 2020 (9M 2020)
ʜ “Interim Sprint” set of measures for portfolio optimization
(sale and closure of company areas)
ʜ Adverse effect on EBITDA of EUR 6.3 million
ʜ Additional charges at EBIT level due to impairments in the
amount of EUR 6.9 million
ʜ Valuation allowance of deferred tax assets in the amount
of EUR 2.7 million
>> Total charges of EUR 16.0 million
14UPDATE ON “INTERIM SPRINT”
SALE OF FICHTHORN SUB-SUBSIDIARY TO STRATEGIST
ʜ Fichthorn GmbH & Co. KG, production of components,
series and assemblies for automotive component suppliers
and the architectural hardware industry. The company also
produces complex installation and welding assemblies.
ʜ Headquarters: Schwelm
ʜ A member of INDUS since 1996
“We are very pleased to have found
ʜ Sale to a strategist for the further development of the a buyer for FICHTHORN after all, who
will continue the company at its
company and preservation of the site with effect from 16 existing location.”
Dr. Johannes Schmidt
October 2020; the sale has prevented the closure that had Chairman of the Board of Management
initially been decided on.
Portfolio optimization in the Automotive Technology segment
15UPDATE ON “INTERIM SPRINT”
PLASTIC ELECTROPLATING OPERATIONS OF SIMON SYSTEMS DISCONTINUED AS PLANNED
ʜ The SIMON Group’s “Systems” division is a systems supplier
of high-quality, predominantly electroplated plastic
injection molded parts
ʜ Plastic electroplating at the company’s site no longer viable
as of 2024 due to the EU ban on chromium VI
ʜ A member of INDUS since 1992 “A conversion of the production
facilities would have required an
ʜ Shutdown completed as planned at the end of Q3 investment in the double-digit
million range – such an amount
was not justifiable.”
Dr. Johannes Schmidt
Chairman of the Board of Management
Portfolio optimization in the Metals Technology segment
16UPDATE ON “INTERIM SPRINT”
SHUTDOWN OF BACHER AG (CH) DECIDED IN THE MEANTIME
ʜ BACHER AG is a supplier and manufacturer of assemblies
and components for rail vehicles and a long-standing
partner of manufacturers and operators of rail vehicles in
the European market
ʜ Lack of competitiveness of the Switzerland location
ʜ Headquarters: Reinach (CH) “The decision to shut down the
company was taken against the
ʜ A member of INDUS since 1992 background of growing price and cost
pressure, persistent losses, increased
foreign competition and the economic
ʜ Shutdown decided; to be completed by mid-2021 consequences of the coronavirus.”
Dr. Johannes Schmidt
Chairman of the Board of Management
Portfolio optimization in the Metals Technology segment
17ACQUISITION OF REMAINING SHARES AS PLANNED
M+P, PEISELER, MBN AND SELZER
Engineering
Shares of an existing shareholder and former managing director acquired as planned
January 2020 Acquisition of additional shares in the amount of 14.5%*, current share: 91.06%
A member of INDUS since 2017
Shares of existing shareholders acquired as planned
April 2020 Acquisition of additional shares in the amount of 25%*, current share: 100%
A member of INDUS since 2014
Shares of two existing shareholders and the previous managing director acquired as planned
September
Acquisition of additional shares in the amount of 20%*, current share: 100%
2020 A member of INDUS since 2017
Automotive Technology
Acquisition of the shares of existing shareholders
June 2020 Acquisition of additional shares in the amount of 15%*, current share: 100%
A member of INDUS since 2005
*Cash outflow from the repayment of contingent purchase price commitments totaling approx. EUR 22 million
18INTERNATIONALIZATION
ESTABLISHMENT OF BEST-COST LOCATIONS FOR AUTOMOTIVE SERIES PRODUCTION SUPPLIERS
Factories at best-cost locations Repositioning of series production suppliers is proceeding according to plan
Automotive Technology segment
“The establishment of a best-cost location in Bosnia for new strategic projects “New best-cost locations in Romania, China and, in the future, Mexico as well as
in the field of transmissions for hybrid vehicles plays a key role in securing state-of-the-art production technologies enable SMA to supply the OEM sector
the future at SELZER.” with components for vehicles with alternative and conventional drives.”
Axel Meyer Rudolf Weichert
Member of the Board of Management Member of the Board of Management
19OUR GOALS FOR THE NEXT YEARS
TAKE THE GROUP TO THE NEXT TECHNOLOGY LEVEL
We support the further development of the strategies of our portfolio companies with
know-how and capital in the areas of innovation and digitalization, operational
excellence and internationalization.
2. DRIVE INNOVATION
ʜ Expand our understanding of innovation
develop
ʜ Acquire younger innovative companies
ʜ More financial resources and know-how support
3. INCREASE PERFORMANCE
faster &
ʜ Promote operational excellence
become better
ʜ Promote financial excellence
20STRATEGIC INITIATIVES
FOCUS 2 AND 3
2. DRIVE INNOVATION 3. INCREASE PERFORMANCE
Strengthen innovation Strengthen operational excellence Strengthen financial excellence
Business
Technology & innovation Production development / Conservative financial management
marketing / sales
Fields of work: Fields of work: Fields of work:
Development Bank Status check Financial stability and liquidity
Knowledge Knowledge Qualification of the finance function
Network Implementation Financial and controlling processes
Strategic projects Cooperation Working capital optimization
Project-specific and cross-field cooperation
21INNOVATION AT INDUS
INTEGRATED APPROACH AND SUPPORT FOR PORTFOLIO COMPANIES
Innovation at INDUS Pillars of the innovation strategy
Dr. Jörn Großmann
Digitalization of products
(Member of the Board of Management)
“Broadened understanding of innovation: Prepare products for integration
Apart from products, we also look at into IoT platforms
services, business processes and business
models.” Automation of production processes
& business processes
Dr. Johannes Schmidt
(Chairman of the Board of Management)
Development of digital business models
“Individualized innovation roadmaps
for our portfolio companies
Promotion of network activities within
form the basis of our innovation strategy”
the Group and with external partners
22DESIGN SOFTWARE & PRODUCT CONFIGURATOR
ANCOTECH AG COMPATIBLE FOR BUILDING INFORMATION MODELLING (BIM)
Adding value through the digitalization of building project management
Marc Barras (Managing Director of ancotech AG)
High customer benefit
“Our ancotech software has made us stand out from
the market for many years. The INDUS development
bank-funded project for the further development of Greater planning certainty for
our software and the integration of the BIM interfaces complex construction projects
has enabled us to generate new customer benefits
and to increase customer loyalty.”
Easier management control
Central data management
Early error analysis
The Circle
(Zurich) International competitive advantage
23DEVELOPMENT OF A CLOUD SOLUTION FOR THE MANAGEMENT OF DATA
IPETRONIK PLACES CLEAR FOCUS ON DIGITALIZATION
Efficient development of measuring systems and services for vehicle development
IPEcloud web portal for fleet testing MATLAB for the management and simulation (also) of measurement data
IPEcloud MDM provides effective measurement data management for data
IPEcloud loggers. This tool is designed to organize, process and evaluate
MDM measurement data from large fleets or test benches systematically
Central monitoring and management of fleet data
Better monetization of the order backlog
Increased sales focus from hardware to software Promotion of rental models Reduced complexity
24DEVELOPMENT OF A GLOVEBOX WITH VOICE CONTROL
MBRAUN CONTINUES TO INNOVATE
Autonomous and voice-based operation of the glovebox
Gloveboxes for hands-free operation Versatile laboratory innovation...
...for various solutions
in technology research
(lithium-ion,
OLED/PLED, additive
manufacturing)
A glovebox (also known as an isolator) is a container that is
hermetically and gas-tightly sealed from the surrounding working
space. Inside the glovebox, a defined atmosphere can be created for
New: Voice control processing sensitive or hazardous substances.
Increased work efficiency and user comfort The glovebox can be operated without interruption Time savings
25STRENGTHENING OPERATIONAL EXCELLENCE IN THE PORTFOLIO COMPANIES (1/2)
UPDATE SALES: FURTHER TRAINING FOR MANAGERS
Subject Contents KPIs 2020
Sales excellence and success factors in a difficult market environment
Alignment in sales – from revenue target to implementation planning
Sales 2 seminars
Target-oriented coaching, motivation and impulse discussions
management Analysis and exploitation of potential in the sales team 22 participants
Prioritization of sales activities
Strategic Marketing & Sales
International markets in transition
Internal and external conditions for successful export activities
2 seminars
Export strategy Strategic objectives and marketing mix
24 participants
Market potential and market entry
International sales optimization
Price elasticity and the price as the greatest lever for the profit equation
Value-based pricing approach
Pricing 1 seminar
Pricing methods in practice
power Discount system management 12 participants
Implementation of pricing systems
Interest from INDUS companies exceeds current offer - expansion planned for 2021
26STRENGTHENING OPERATIONAL EXCELLENCE IN THE PORTFOLIO COMPANIES (2/2)
UPDATE PRODUCTION: FURTHER TRAINING FOR MANAGERS
Contents Development of lean management training
Transfer of methodological knowledge to carry out improvement
activities and projects in the company
Lean management & process optimization
Trainer level
Collecting of practical knowledge for the application of the methods
Preparation of organizational structures in the company which enable Expert Level
the improvement of processes in the company
Establishment of a best-practice network among the participants Basics level
Rolling, recurring run of the training courses
Review 2018-2020 Further outlook on 2020
4 Lean Basics training courses; 59 1 lean expert training (postponed due to corona pandemic)
participants Re-run of Lean Management training as needed
3 Lean Expert training courses; Implementation of further, topic-specific training (e.g. store
30 participants floor management)
1 Lean Trainer training course;
8 participants
1 Shopfloor Management course NEW! Further continuation of courses in 2021
27STRATEGIC INITIATIVE “STRENGTHENING FINANCIAL EXCELLENCE”
CONSERVATIVE FINANCIAL MANAGEMENT
ʜ Objective: Stable balance sheet ratios and strong equity base
Strengthen financial excellence ʜ Broadly diversified financing base and long-term relationships
with existing lenders
Conservative financial management ʜ Significant liquidity buffer provides room for maneuver
ʜ Transparency and process optimization thanks to modern IT and ERP landscape
Fields of work:
ʜ Support for the portfolio companies in the continuous professionalization and
improvement of the finance function:
Financial stability and liquidity
Uniform consolidation and reporting system landscape across the Group
Qualification of the finance function
Close liquidity monitoring
Financial and controlling processes
Strict receivables and inventory management
Working capital optimization
Training and qualification of financial managers
28SUSTAINABILITY AS A KEY ELEMENT OF THE STRATEGY
THE FOLLOWING SEVEN OBJECTIVES HAVE BEEN ANCHORED AS THE FOCUS
Investments Sustainable expansion and internal development of the investment portfolio ENVIRONMENTAL
• Clear definition of objectives and measures at investment
Increase in efficiency through process innovation and development of new level
Innovation • No acquisition of companies in energy-intensive segments
sustainable products Anchoring of the environmental audit in the due diligence
OBJECTIVES: Seven essential pillars
•
process of all potential new acquisitions
• Purchase of “green electricity” generated without producing
Internationalization Review of sustainability in the event of internationalization emissions
SOCIAL
Measures
Shareholder role Sustainable core processes are transferred to the portfolio companies
• Support the exchange of best practices
• Raise awareness and increase transparency through
Group-wide recording of donation amounts (...)
Human resources Promote and raise awareness for the sustainability strategy
GOVERNANCE
Social engagement Assumption of social responsibility is anchored in the Code of Conduct • Self-commitment of the portfolio companies
• Raise awareness and increase transparency through
Group-wide recording and communication of sales
revenues in risk countries as well as expenses for
Resource efficiency General avoidance of waste
penalties and lawsuits (...)
29INDUS BUSINESS MODEL
SUSTAINABILITY AS AN INTEGRAL COMPONENT
‘PRIME’ STATUS IN ISS ESG RATING
ISS ESG Rating
Top position in ISS ESG rating for the fifth time
INDUS received a ‘C+’ rating in ‘Corporate ESG
Performance’ and hence also ‘Prime’ status
Top position in the international peer group of
‘Financials / Multi-Sector Holdings’
30AGENDA
1 INDUS - OUR DNA
2 PARKOUR - OUR STRATEGY
3 INDUS IN NUMBERS - 9M 2020
4 OUTLOOK
5 INDUS SHARE & DIVIDENDS
6 APPENDIX
31INDUS KEY FIGURES
9M 2020 AT A GLANCE
CORONAVIRUS EFFECTS STILL NOTICEABLE EARNINGS FIGURES
Sales
9M 2020
1,164.1
9M 2019
1,312.8
̋LQ
-11.3
DESPITE IMPROVEMENT IN Q3 EBITDA
EBIT before impairments
114.4
45.1
168.1
103.1
-31.9
-56.3
EBIT-Margin before impairments (in %) 3.9 7.9 -4,0pp
Impairments -40.8 -12.5INDUS KEY FIGURES
STATEMENT OF CASH FLOWS FROM 1 JANUARY 2020 TO 30 SEPTEMBER 2020
84.6
-13.6
Investments in property,
Cash outflow plant and equipment
slightly and intangible assets Cash flow
below of EUR 26.7 million are from
previous below 9M level of financing
OPERATING CASH
year’s level previous year (previous activities
FLOW ONLY
year: EUR 43.3 million) increases
SLIGHTLY BELOW
due to
PREVIOUS YEAR
placement of
Due to W/C
ESG
reduction
promissory
(previous year:
note loan
increase)
Cash and cash Operating Interest Cash flow Cash flow Cash flow Changes in cash Exchange rate- Cash and cash
equivalents cash flow paid/received from from from and cash related equivalents at
at the beginning operating investing activities financing equivalents (...) change in the end of the
of the period activities activities cash and cash period
equivalents
33RESILIENCE IN TIMES OF CRISIS THANKS TO SME AGILITY
CORONAVIRUS UPDATE – TEMPORARY REDUCTION IN COST BASE IN TIMES OF CRISIS
ʜ Innovative sales strategies and distribution channels using the digital infrastructure
ensure that portfolio companies retain their ability to act
ʜ INDUS continues to support training, webinars and knowledge transfer for employees in its portfolio
companies
ʜ Noticeable reduction in selling expenses, also due to restrictions imposed because of the coronavirus
pandemic (e.g. no trade fairs and travel)
ʜ Total selling, operating and administrative expenses down in relation to sales
9M 2020 vs. 9M 2019 in EURk 0 0 ̋
(…)
Cost of materials -529,866 -610,067 -13%
Cost of materials Personnel expenes -377,437 -396,859 -5%
down by 13% (…) Determined adjustment of the cost structure
leads to noticeable reduction in other
Other operating expenses operating expenses
Personnel expenses Selling expenses -56,245 -67,417 -17%
down by 5% Operating expenses -46,203 -50,554 -9% Other expenses:
Administrative expenses -36,552 -38,543 -5%
Selling expenses Subtotal -139,000 -156,514 -11%
Other expenses include a deconsolidation loss
down by 17%
Other expenses -12,935 -4,830 >-100% of KIEBACK in the amount of EUR 3.7 million as
of 31 July 2020 as well as exchange rate losses.
Total other operating expenses -151,935 -161,344 -6%
34INDUS KEY FIGURES – ONE-TIME EFFECTS IN DETAIL
PRESENTATION OF THE EFFECTS ON INCOME BY MEASURES AND SEGMENTS
Change Q3 vs. Q2 2020 “Intermediate sprint” set of measures Impairment test
Automotive Metals Automotive Metals
One-time effects (in EUR million) Totals Engineering Totals
Technology Technology Technology Technology
Personnel restructuring -1.2
Other -1.4
-3.7
Deconsolidation of KIEBACK
(Q2: 0.0)
Effect on EBITDA -6.3 -6.3
-2.3
Goodwill impairment (IAS 36) -29.2 -2.4 -33.9
(Q2: 0.0)
-2.3
Asset impairment (IAS 36) -3.6
(Q2: 1.7)
Total impairments
Impairments (IFRS 5) -1.0 EUR -40.8 million
(Q2: -37.9)
Effect on EBIT -4.6 -2.3 -6.9 -29.2 -2.3 -2.4 -33.9
Total effect on EBIT -10.9 -2.3 -13.2 -29.2 -2.3 -2.4 -33.9
Impairment of deferred tax assets Total effects:
-1.0 -1.8 -2.8
(IAS 12) EUR -49.9 million
Earnings after taxes -11.9 -4.1 -16.0 -29.2 -2.3 -2.4 -33.9 (Q2: -43.3)
35INDUS KEY FIGURES
CONSTRUCTION/INFRASTRUCTURE IN 9M 2020
TREND REMAINS GOOD DESPITE COVID-19
ʜ Solid sales trend despite the strong prior year period.
ʜ Disproportionate increase in operating income; EBIT margin of 18.0% clearly exceeds the
previous year’s level. Slightly declining EBIT margin of 17.5% in Q3 2020.
ʜ All segment companies contribute to the positive performance.
ʜ Full-year sales and earnings expected to be slightly below the previous year and at the
previous year’s level, respectively (updated 12 November 2020).
ʜ EBIT margin of >15% now expected for the full year (updated 12 November 2020).
(in EUR millions) 9M 2020 9M 2019 ̋LQ
Sales with external third parties 295.6 294.9 0.2
EBITDA 64.7 57.2 13.1
Depreciation/Amortisation -11.6 -10.2 -13.7
EBIT 53.1 47.0 13.0
EBIT margin (in %) 18.0 15.9 2.1pp
Capital expenditure 11.4 11.0 3.6
36INDUS KEY FIGURES
AUTOMOTIVE TECHNOLOGY IN 9M 2020
STABILIZATION HAS STARTED BUT UNCERTAINTY REMAINS HIGH
ʜ Very sharp declines in sales in April and May caused by COVID-19 pandemic;
slow pick-up since June and noticeable increase in sales since September.
ʜ Goodwill impairments of EUR 29.2 million due to reduced projections, one-time expenses of EUR
11.9 million for shutdowns and sales (thereof EUR 10.9 million through EBIT).
ʜ Sharp year-on-year decline in sales and clearly negative operating income (EBIT) expected.
(in EUR millions) 9M 2020 9M 2019 ̋LQ
Sales with external third parties 198.2 267.8 -26.0
EBITDA -20.2 10.5 *INDUS KEY FIGURES ENGINEERING IN 9M 2020 ORDER INTAKE REMAINS SLUGGISH ʜ Declining sales at all segment companies. Companies in the machine tool and automotive-related automation technology sectors continue to be particularly hard hit by the coronavirus. ʜ Order intake at most of the segment companies remains sluggish. ʜ Impairments of EUR 2.3 million due to reduced future expectations of a portfolio company supplying the machine tool industry. ʜ Sharp drop in sales and EBIT; EBIT margin for the full year expected to be in the range of 6% to 8%. (in EUR millions) 9M 2020 9M 2019 ̋LQ Sales with external third parties 260.5 318.0 -18.1 EBITDA 31.9 49.8 -35.9 Depreciation/Amortisation -15.2 -13.8 -10.1 EBIT before impairments 16.6 36.0 -53.9 EBIT margin before impairments (in %) 6.4 11.3 -4,9pp Impairments -2.3 0.0
INDUS KEY FIGURES
MEDICAL ENGINEERING/LIFE SCIENCE IN 9M 2020
BRIGHTER PROSPECTS SINCE MID-YEAR
ʜ Unexpectedly strong decline in sales until June due to disruption of rehabilitation technology
business and the absence of “normal” operations during the main months of the lockdown.
ʜ Encouragingly, sales have picked up as of June and have reached almost the previous year’s
level; recovery also visible in third quarter.
ʜ Year-on-year decline in sales and sharp decline in EBIT expected for the year as a whole.
ʜ EBIT margin for the full year expected in the range of 7% - 9%.
(in EUR millions) 9M 2020 9M 2019 ̋LQ
Sales with external third parties 106.7 121.0 -11.8
EBITDA 15.3 21.0 -27.1
Depreciation/Amortisation -7.5 -7.0 -7.1
EBIT 7.8 14.0 -44.3
EBIT margin (in %) 7.3 11.6 -4,3pp
Capital expenditure 3.0 2.8 7.1
39INDUS KEY FIGURES
METALS TECHNOLOGY IN 9M 2020
SLIGHT RECOVERY IN THE THIRD QUARTER
ʜ Noticeable decline in sales felt in the first half of the year; brightening up in the third quarter
and return to the previous year’s level.
ʜ Goodwill impairments of EUR 2.4 million (Q2 2020) and one-time expenses of EUR 4.1 million (Q2
and Q3 2020) for sales and shutdowns (thereof EUR 2.3 million through EBIT).
ʜ EBIT before impairment clearly better than in the previous quarter.
ʜ Year-on-year decline in sales and sharp decline in EBIT expected for the year as a whole
ʜ EBIT margin for the full year expected in the range of 3% - 5%.
(in EUR millions) 9M 2020 9M 2019 ̋LQ
Sales with external third parties 303.3 311.3 -2.6
EBITDA 28.3 36.1 -21.6
Depreciation/Amortisation -13.4 -12.7 -5.5
EBIT before impairments (in %) 14.9 23.4 -36.3
EBIT before impairments (in %) 4.9 7.5 -2,6pp
Impairments -4.7 0.0LIQUIDITY SECURED
DIVERSIFIED FINANCING MIX AND BALANCED MATURITY PROFILE
Long-term, bilateral credit relationships with core banks ensure ability to act No syndicated credit lines
Main points of the financing: No collateral, strict equal treatment of lenders, negative pledge
Financial liabilities Cash and cash equivalents Net liabilities
EUR 746.5 million EUR 196.1 million EUR 550.4 million
Financial liabilities & maturity profile Available lines of EUR 70 million
EUR 746.5 million EUR 139.3 million EUR 607.2 million -> Balanced maturity profile
-> New borrowings with low interest rates
-> Bundesbank-eligible
30 Sep 20 Current Non-current “INDUS’ supply with cash is currently secured. Which
2020 2021 2022 2023 2024 2025 2026 2027 … 2034
Liabilities to banks is why we will not resort to government aid for the
Liabilities from leases (IFRS 16) Promissory note loans time being.”
Promissory note loans Bank loans Dr. Johannes Schmidt (CEO)
41ESG-LINKED PROMISSORY NOTE LOAN
BORROWINGS (VOLUME 60 EURM)
Consistent continuation of the sustainability strategy as a natural element of INDUS’ corporate strategy
Promissory note transaction 2020
“Sustainability has been a key element of INDUS’
corporate strategy for many years. With the ESG-linked
- Transaction with an original target volume of EUR 50 million oversubscribed promissory note loan, we are now continuing this
- EUR 60 million raised strategy also where our financing is concerned. Just like
the sustainability development bank, this is a further
34 step towards supporting sustainable action in the INDUS
23
Group.”
3
Rudolf Weichert, in charge of the Finance Department
5Y (1.35%) 7Y (1.60%) 10Y (2.15%)
Interest rate disadvantage if the sustainability rating deteriorates, or Further intensification of INDUS’ sustainability
advantage if the rating improves (+/- 5 basis points) efforts
Investors mainly from the savings bank sector,
but also commercial banks and institutional investors Initiation of a sustainability survey to reflect the information
requirements of the capital market
42EFFECTS OF COVID-19
INDUS FURTHER STRONG DURING CRISIS
Reduced risks due to geographically
and content-wise diversified
portfolio
and agility of the SME structures
Securing of the future viability
Financial stability of the portfolio companies by
due to good equity base and driving innovation and sustainability
proactive financial management as well as
promoting operational excellence
INDUS WILL MASTER THE CHALLENGE
43AGENDA
1 INDUS - OUR DNA
2 PARKOUR - OUR STRATEGY
3 INDUS IN NUMBERS - 9M 2020
4 OUTLOOK
5 INDUS SHARE & DIVIDENDS
6 APPENDIX
44GENERAL OUTLOOK FOR 2020
GENERAL ENVIRONMENT STRONGLY INFLUENCED BY THE EFFECTS OF COVID-19
ʜ Continued high losses in the global economy due to the effects of the
COVID-19 crisis.
ʜ The effects of the US elections on economic trade relations are not yet
foreseeable.
ʜ Germany’s GDP likely to contract by 5% - 6% in 2020; higher declines
expected in neighboring European countries.
ʜ Construction industry remains at the previous year’s level.
ʜ First signs of recovery in the Automotive Technology segment since
September.
ʜ Slump in incoming orders and capacity utilization caused by the
COVID-19 pandemic has slowed down in Q3.
ʜ Effects of the second lockdown not yet predictable.
45OUTLOOK FOR 2020 - FORECAST
GUIDANCE FOR THE GROUP
EFFECTS OF CORONA-PANDEMIC VISIBLE ON GROUP GUIDANCE
Forecast 2020
EUR 1.45 – 1.6 billion
Revenue
Revenue 2019 1,45 – 1,6 Mio. EUR
Forecast 2020
EUR 0 – 20 million
Operating result (EBIT)
UMSATZ (2020)
Operating result (EBIT) 2019 1,45 – 1,6 Mio. EUR
46OUTLOOK FOR 2020 – FORECAST (PRECISION OF GUIDANCE FOR CONSTR.)
GUIDANCE ON SEGMENT LEVEL
EXPECTED CONSEQUENCES OF THE CORONA PANDEMIC SHAPE THE SEGMENT FORECAST
CONSTR./INFRASTRUCTURE AUTOMOTIVE TECHNOLOGY ENGINEERING MED. ENGIN./LIFE SCIENCE METALS TECHNOLOGY
600 16.2% 600 600.0 600
15% 150.0%
145.0% 15.0% 15.0%
500 140.0% 500 500.0 500
135.0%
130.0%
125.0% 434.6 11.6%
388.9 510 120.0%
115.0%
110.0% 15% 409.2
105.0%
100.0%
400 95.0% 400 400.0 400
90.0%
85.0%
10% 410 350.3 80.0%
75.0%
70.0% 10.0% 10.0%
65.0%
60.0%
300 300
310
55.0%
50.0%
45.0%
40.0%
12.6% 300.0 300
6.3%
35.0%
30.0%
200 -10.2% 25.0%
20.0%
15.0%
10.0% 200 200.0 159.7 200
5% 210 5.0% 5.0%
0.0%
-5.0% 5.0%
-10.0%
-15.0%
100 63.0 110
-20.0%
-25.0%
-30.0%
-35.0%
100 54.6 100.0 100
-40.0%
-45.0%
-50.0% 18.6 25.8
-55.0%
-60.0%
0 0% 10 -65.0%
-70.0% 0 10%
-75.0% 0.0 0.0% 0 0.0%
-80.0%
-85.0%
2019 -90 -35.8
-90.0%
-95.0%
-100.0% 2019 2019 2019
2019*
PLAN SALES 2020
Strong fall in sales Strong fall in sales Strong fall in sales Falling sales Falling sales
Decrease in sales Decrease in sales Decrease in sales Slight decrease in sales Decrease in sales
EBIT on parPLAN EBIT
with the 2020year
previous Negative EBIT Strong fall in EBIT Strong fall in EBIT Strong fall in EBIT
Decrease in eranings Increase in earnings Decrease in eranings Decrease in eranings Decrease in eranings
> 15%PLAN EBIT MARGIN 2020 n/a 6% to 8% 7% to 9% 2% to 4%
13% - 15% -9% - -7% 9% - 11% 9% - 11% 5% - 7%
*After impairments (in EUR Millons)
47AGENDA
1 INDUS - OUR DNA
2 PARKOUR - OUR STRATEGY
3 INDUS IN NUMBERS - 9M 2020
4 OUTLOOK
5 INDUS SHARE & DIVIDENDS
6 APPENDIX
48SHARE AND DIVIDEND
ANCHOR SHAREHOLDERS SUPPORT LONG-TERM COURSE OF BUSINESS
WKN/ISIN 620010/DE 000 620 010 8 Shareholder base (as of 12.11.2020)
Established/IPO 1986/1995
Fiscal year 01.01. – 31.12.
Capital stock EUR 63.6 milion 19.4%
24,450,509 no-name bearer
Number of shares
Last capital shares
increase 02.12.2013 5.8%
Free float approx. 72%
3.0%
XETRA, Düsseldorf, Frankfurt Versicherungskammer Bayern
Stock exchanges (regulated market)
H.J. Selzer et al.
Tradegate Exchange, Berlin,
Hamburg, Hanover, Munich, 71.8% Epina GmbH & Co. KG
Stuttgart, Wien (open market)
Free float* (Thereof Dimensional
Index SDAX Holdings Inc.: 3.00%)
Designated Bankhaus Lampe, Commerzbank,
Sponsors ICF BANK AG *The German Stock Exchange defines free float as all shares not held by major shareholders (share of
capital of at least 5%).
49SHARE AND DIVIDEND
DIVIDEND PAYOUT POLICY AND DIVIDEND TRACK-RECORDS BY INDUS HOLDING AG
Shareholders regularly A good 50% of profits Up to 50%
participate in successful are retained to strengthen of profits
business performance the company are distributed
* Net profit in EUR millions
50THANK YOU VERY MUCH
FOR YOUR ATTENTION!
Starting on the left:
Rudolf Weichert (Board member)
Axel Meyer (Board member)
Dr.-Ing. Johannes Schmidt
(Chairman of the Board)
Dr. Jörn Großmann (Board member)
51AGENDA
1 INDUS - OUR DNA
2 PARKOUR - OUR STRATEGY
3 INDUS IN NUMBERS - 9M 2020
4 OUTLOOK
5 INDUS SHARE & DIVIDENDS
6 APPENDIX
52CONTACT
INVESTOR RELATIONS PUBLIC RELATIONS
DAFNE SANAC JANA KÜLSCHBACH
+49 (0) 2204-4000-32 +49 (0) 2204-4000-35
investor.relations@indus.de presse@indus.de
53FINANCIAL CALENDAR
PUBLICATION DATES 2021
DATE EVENT VENUE
23 February 2021 Preliminary Results 2020 Publication
23 March 2021 Publication of Annual Report 2020 Online
24 March 2021 Analysts’ conference on the 2020 fiscal year Online
12 May 2021 Publication of the interim report for Q1 2021 Publication
26 May 2021 Annual Shareholders’ Meeting
11 August 2021 Publication of the interim report for H1 2021 Publication
11 November 2021 Publication of the interim report for 9M 2021 Publication
54INDUS PORTFOLIO COMPANIES
CONSTRUCTION/INFRASTRUCTURE SEGMENT
COMPANIES DESCRIPTION LOCATIONS
Anchoring and reinforcement technology Dielsdorf (CH), Cologne (DE), Lauchhammer (DE), Rossens (CH)
Anchoring and reinforcement technology Neuss (DE), Halle (DE)
Sealants made of silicone and acrylic Reichshof/Hahn (DE), Korntal-Münchingen (DE)
Hermaringen (DE), Dubai (VAE), Jagstzell (DE), Oensingen (CH),
Innovative sealing systems for cables and pipes Singapur (SG)
Edge and wrapping veneer Melle (DE), Heath (US), Pusztaszabolcs (HU)
Expansion gap profiles for large projects Wülfrath (DE), Dubai (VAE)
High-quality front door panels Oelde (DE), Chociwel (PL), Malacky (SK), Sittensen (DE)
Air-conditioning devices, hot-air heating systems, inverter heat pumps, air dehumidifiers Lage (DE), Luvia (FIN)
Ventilation and air conditioning planning and construction Friedberg (DE)
Special underground construction for planning and laying cable conduits (data, gas,
water, district heating) Bad Königshofen im Grabfeld (DE)
Powder-coating of facades and ceiling and wall elements Oberviechtach (DE)
55INDUS PORTFOLIO COMPANIES
AUTOMOTIVE TECHNOLOGY SEGMENT
COMPANIES DESCRIPTION LOCATIONS
Mudau (DE), Grand Rapids (US), Istanbul (TR), Nuenen (NL),
Heating and air-conditioning systems for vehicles Oettingen (DE), Shanghai (CN), Weert (NL)
Innovative cold extrusion parts, turned parts and locking screws Hillesheim (DE), Taicang (CN)
Baden-Baden (DE), Bangalore (IN), Düsseldorf (DE), Eichstätt (DE),
Measurement systems and services for automotive development Olching (DE), Schaffhausen (CH), Wixom (US)
Modules and mold construction for the automotive and aviation industries Osnabrück (DE), Mühlhausen (DE), Munich (DE), Shanghai (CN)
Components and assemblies for transmissions, brakes and engines Driedorf (DE), Schwelm (DE), Shanghai (CN), Vinhedo (BR)
Tire studs and carbide tools Aichhalden (DE)
Line systems for automotive air conditioning and servo technology Backnang (DE), East London (ZA), Halle (DE), Oradea (RU), Shenyang (CN)
Plastic components for automotive technology Wiesau (DE), Novi (US), San José Iturbide (MEX)
56INDUS PORTFOLIO COMPANIES
ENGINEERING SEGMENT
COMPANIES DESCRIPTION LOCATIONS
Robotic hands and automation systems for manufacturers Overath (DE), Plymouth (US), Wörth an der Donau (DE)
Specialist for logistics and material flows Bielefeld (DE), Delmenhorst (DE), Murrhardt (DE), Schmalkalden (DE)
Burbach (DE), Barcelona (ES), Calgary (CD), Casablanca (MA), Korolev (RU),
Energy technology company Mailand (IT), Newbury (GB), Nur-Sultan (KAZ), Rheinau (CH), Sandton
(ZA), Santiago de Chile (CL), Shanghai (CN), Singapur (SG), Toronto (CD)
Innovative valve technology for highly demanding industrial applications Vlotho (DE)
Flensburg (DE), Humble (USA), Mumbai (IND), Shanghai (CN),
Fueling technology and repair shop solutions Sheffield (GB)
Components for automation technology Furtwangen im Schwarzwald (DE)
Special machinery fo vehicle assembly Ebersbach-Neugersdorf (DE), Changchun (CN), Montgomery (US)
Garching (DE), Dresden (DE), Mansfield (GB), Mérignac Cedex (FR), Seoul
Intergas glovebox systems for industry and research (ROK), Shanghai (CN), Stratham (US)
Hanover (DE), Farnham (GB), Montesson (FR), Peking (CN), Verona/New
Measurement and test systems for vibration control and analysis Jersey (US)
Metal and foreign body detection in production processes Kirchberg im Wald (DE), Colmar (FR)
NC rotary tables and NC rotary tilt tables for technology-intensive positioning of
workpieces Remscheid (DE), Morbach (DE), Grand Rapids (US), Taipeh (TWN)
International construction of towers Berlin (DE)
57INDUS PORTFOLIO COMPANIES
MEDICAL ENGINEERING/LIFE SCIENCE
COMPANIES DESCRIPTION LOCATIONS
Assembly of non-woven fabric products for medical, cosmetic, cleaning and personal
hygiene products +¸VEDFK '( .¸QLJVZDOGH '( /XEDĆ 3/
Miniaturized precision optics :LWWHQEDFK &+ .DÉ 65% 6DXHUODFK '(
Bamberg (DE), Glauchau (DE), Maastricht (NL), Salzburg (AT),
Compression hosiery, bandages and made-to-measure orthotic devices Waldenbuch (DE)
Customized solutions for surgical drapes, gowns, textile surgery consumables Ascheberg-Herbern (DE), Cisnadie (RO), Douar Takad/Sidi-Bibi (MA)
Borgholzhausen (DE), Bloomfield (US), Houten (NL), Silkeborg (DK),
Manufacturing and selling of wheels, rollers, tires, rehabilitation accessories Xiamen (CN)
58INDUS PORTFOLIO COMPANIES
METALS TECHNOLOGY
COMPANIES DESCRIPTION LOCATIONS
Steel and aluminium building modules for the rail industry Reinach (CH)
Carbide tools for road construction and mining, tunnel and underground construction,
farming etc. Aichhalden (DE), Charlotte (US), Taicang (CN)
Metal and sheet metal parts, components, switch cabinets, machine panels Dessau-Roßlau (DE)
Casing for medical engineering systems and professional coffee machines Bättwil (CH)
Stud welding technology and cold working parts (QQHSHWDO '( ĿDFO«ě &=
Hydraulic blocks and systems Münsingen (DE)
Power transmission technology, stirring technology, plant engineering Munderkingen (DE)
Metal processing and forming technology Bad Marienberg (DE), Eichenstruth (DE)
Components and assemblies made from metal and plastic Aichhalden (DE), Rickenbach (CH)
Stainless steel blasting agents for surface treatments Hattingen (DE), Brantford (CD)
59ECONOMIC DEVELOPMENT 2019
THE REPORTING YEAR AT A GLANCE
EARNINGS FIGURES 2019 2018 ̋LQ CASH FLOW FIGURES 2019 2018 ̋LQ
Sales 1,742.8 1,710.8 1.9 Operating cash flow 167.7 96.0 74.7
EBITDA 225.7 218.1 3.5 Cash flow from operating
EBIT before impairment 135.2 150.5 -10.2 activities 147.3 74.7 97.2
EBIT margin before Cash flow from investing
impairment (in %) 7.8 8.8 -1 pp activities -76.2 -98.3 22.5
Impairment 17.3 16.1 7.5 Cash flow from financing
EBIT 117.9 134.4 -12.3 activities -46.1 -2.7 >-100
EBIT (in %) 6.8 7.9 -1 pp Cash and cash equivalents 135.1 109.6 23.3
EBT 98.9 114.7 -11.2
Earnings after taxes 60.1 71.2 -15.6
BALANCE SHEET FIGURES 31.12.2019 31.12.2018 ̋LQ
OTHER KEY FIGURES 2019 2018 ̋LQ Total assets 1,808.2 1,720.0 5.1
Earnings per share (in EUR) 2.43 2.90 -16.2 Equity 727.7 709.8 2.5
Employees (on average) 10,856 10,714 1.3 Equity ratio in % 40.2 41.3 -1 pp
Portfolio companies (number) 47 45 4.4 Net debt 546.3 482.8 13.1
60INDUS HOLDING AG DISCLAIMER This presentation was prepared by INDUS Holding AG (hereinafter referred to as “INDUS”) and is for information purposes only. It does not constitute an offer or a solicitation to buy or sell securities, nor should it be regarded as a sufficient or adequate basis for any decision. All information in this presentation has been compiled to the best of our knowledge and belief. However, INDUS assumes no liability whatsoever for the use of this document or its contents or in any other connection with this document. Furthermore, INDUS assumes no responsibility or guarantee for the accuracy, up-to-dateness and completeness of the information and opinions contained therein. Duplication, distribution or reproduction of this document or parts thereof is not permissible without the written consent of INDUS. This presentation may contain forward-looking statements. These statements are based on the current estimates and forecasts of the INDUS Board of Management and the information currently available to the latter. The forward-looking statements should not be understood as guarantees of the future developments and results of INDUS mentioned therein, which are dependent on a number of factors. They include various risks and uncertainties and are based on assumptions that may turn out to be incorrect. INDUS does not assume any obligation beyond the legal requirements to update the forward-looking statements contained in this presentation.
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