technotrans SE

Quarterly Report • May 3, 2022

Quarterly communication

January 1 - March 31, 2022

Key figures of the technotrans Group (IFRS)

	Δ previous year	$01/01 -$ 31/03/2022	$01/01 -$ 31/03/2021	2021
k€ Revenue	7.2%	56,654	52,833	211,102
k€ Technology	8.7%	42,336	38,951	156,890
k€ Services	3.1%	14,318	13,882	54,212
k€ EBIT	8.4%	3,108	2,866	11,030
% EBIT margin		5.5	5.4	5.2
k€ Net profit for the period 1	6.9%	2,020	1,890	7,020
% as percent of revenue		3.6	3.6	3.3
% ROCE		11,7	9,1	12,5
€ Earnings per share	7.4%	0,29	0,27	1,02
Balance sheet total assets k€	3.8%	152,741	157,052	147,197
k€ Equity*	2.7%	87,061	81,582	84,776
% Equity ratio		57.0	51.9	57.6
Net debt 2 k€	34.9%	20,706	17,061	15,344
k€ Free cash flow 3		$-4,754$	4,851	9,955
Employees (balance sheet date)	$-0.5%$	1,426	1,410	1,433

*Change compared to December 31, 2021

¹ Result for the period:

²Net debt:

Profit attributable to shareholders of technotrans SE

Interest-bearing financial liabilities including lease liabilities according to IFRS 16 ./. cash and cash equivalents Net cash from operating activities

³Free cash flow:

• Net cash used for investments according to cash flow statement

Quarterly Communication January 1 - March 31, 2022

technotrans successfully continues profitable growth path

Development of key figures in the first 3 months 2022 (Change compared to previous year in brackets)

Revenue:	56.7m€	$(+ 7.2 %)$
EBIT:	3.1m€	$(+ 8.4 %)$
EBIT margin:	5.5%	(+0.1 percentage points)
ROCE:	11.7%	(+2.6 percentage points)

The technotrans Group made a positive start to the new 2022 financial year despite the persistence of the Corona pandemic, ongoing supply chain disruptions and the already noticeable economic impact of Russia's attack on Ukraine. Group revenue and EBIT increased significantly compared to the previous year. The EBIT margin increased slightly and is in the middle of the forecast. The limited supply of materials led to an increase in inventories and receivables. The order backlog increased from the record level of 31 December 2021 and stood at € 85 million at the end of the reporting period. The book-to-bill ratio of 1.3 also underlines the continuing growth trend.

Both reporting segments showed a performance above the previous year. In the Technology segment, revenue rose by 9.0 % to € 42.4 million with an EBIT margin of 2.3 % (previous year: 2.1%). The Services segment generated an increase of 3.2 % to € 14.3 million revenue with a stable EBIT margin of 14.8%

The merger of the Group company Reisner Cooling Solutions GmbH with technotrans solutions GmbH and the renaming of termotek GmbH as technotrans systems GmbH were legally completed in the first quarter of 2022 as important milestones in the Future Ready 2025 strategy. Progress was also made in terms of sustainability: A new photovoltaic system was installed in Baden-Baden as planned.

The Board of Management is very satisfied with the course of business in the 1st quarter of 2022. Assuming that the difficult economic conditions do not worsen further, it confirms its expectation of achieving consolidated revenue of between € 220 and 230 million with an EBIT margin of between 5.0 and 6.0 % in the 2022 financial year. The medium-term forecast for 2025 also remains unchanged.

Presentation of significant events and business performance in the first quarter of 2022

Development in the markets

Demand for technotrans systems and services remained stable in all relevant markets in the first quarter. The order backlog reached a new all-time high of € 85 million at the end of the reporting period. The book-to-bill ratio of 1.3 calculated at the reporting date has also increased, confirming the sustained growth momentum of the technotrans Group.

Focus market Plastics: technotrans has acquired an important major order with a seven-figure euro volume and is the exclusive systems partner for the market entry of the Israeli cleantech company UBQ Materials in Europe. The core of the collaboration is the design and manufacture of a particularly energy-efficient cooling and heating system for a plastics recycling plant that is scheduled to go into operation at the end of the year. This is just one example of the growth potential in this market, even though revenue in the first quarter was as expected moderately below the comparable quarter of the previous year due to the disruptions in global supply chains.

Focus Market Energy Management: The demand for technotrans battery cooling systems for rail vehicles gathered pace, with the result that the order books continued to fill up. technotrans also acted as an exclusive partner for the market launch of the Chinese car manufacturer NIO in Europe. The first power swap station for automatic swapping and charging of vehicle batteries was put into operation in Oslo. More are to follow this year. technotrans' contribution is the innovative cooling technology for the charaing process of the exchanged batteries. Overall, this focus market developed positively in the first three months of the business year and sales increased compared to the previous year.

Focus Market Healthcare & Analytics: Encouraged by a pleasing market trend for medical and analytical systems, technotrans is continuing to expand its solutions expertise. With a view to demanding metrological applications in the semiconductor industry, the construction of a clean room production facility for cooling and temperature control systems was started at the Baden-Baden site. The clinical tests for the newly developed solutions for cooling head and body parts are also proceeding according to plan and lead us to expect the first series sales towards the end of 2022. Looking at the focus market as a whole, revenue was slightly below the previous year due to supply bottlenecks.

Focus Market Print: The renewed willingness to invest, partly as a result of catch-up effects, was reflected in strong revenue growth for technotrans in this market. Due to the long project lead times of the machine manufacturers, a sustained positive development can be expected beyond 2022, provided this boost is not counteracted by Russia's attack on Ukraine and forces the global economy into a longer-lasting recession.

Economic framework conditions / procurement markets

The Corona pandemic and the resulting dislocations in the procurement markets continue to dominate global economic activity. Due to the corona-related lockdown e.g. in Shanghai the situation has worsened again. Since February, Russia's attack on Ukraine, which violates international law, has had an additional negative impact on the overall economy. Global logistics chains are strained. Routes via Russia are almost no longer available for transport. In addition to lengthening delivery times, transport costs increase significantly. The availability of individual raw materials and intermediate products from the affected regions is also severely limited, leading to a significant increase in costs. This includes the rise in energy prices, which has a negative impact on inflation rates and pushes them to unimagined heights. As a result, leading forecasting institutes have revised their growth expectations for 2022 significantly downwards. The direct impact on technotrans' business performance is minor, as there are no significant supplier and customer relationships in Ukraine and Russia. However, it can be assumed that the indirect effects, such as availability or significant cost increases, will also affect technotrans. Accordingly, the measures to ensure a sufficient supply of input materials and raw materials and to cushion increased material costs will continue unchanged.

General statement of the Board of Management on the course of business

"Russia's attack on Ukraine, which contravenes international law, has worsened the general economic conditions. technotrans has increased both its consolidated revenue and its EBIT margin compared with the previous year, despite the greater challenges.

The decisive factor here was the consistent implementation of the Future Ready 2025 strategy, which makes the Group more resilient to external conditions. Other success factors were the high level of personal commitment of our employees and the cooperative partnership with our customers and suppliers, who worked with us to implement solutions in this difficult environment.

Therefore, in view of the current environment, the Board of Management is very satisfied with the business performance in the first 3 months of the 2022 financial year."

	$01/01 -$ 31/03/2022	$01/01 -$ 31/03/2021	Change from previous year
Revenue	56.7	52.8	7.2%
Cost of sales	$-40.4$	$-37.7$	7.2%
Gross profit	16.3	15.1	7.3%
Distribution costs	$-6.3$	$-5.9$	7.6%
Administrative expenses	$-5.2$	$-4.9$	5.9%
Other income/expenses	$-1.7$	$-1.4$	21.4%
EBIT	3.1	2.9	8.4%
Net profit for the period*	2.0	1.9	6.9%
Earnings per share $(\epsilon)$	0.29	0.27	7.4 %

Revenue and financial performance (in $m \in$ )

* Profit attributable to shareholders of technotrans

Revenue performance

The technotrans Group generated consolidated revenue of $\epsilon$ 56.7 million in the first 3 months of the 2022 financial year (previous year: € 52.8 million). The focus markets Plastics, Energy Management, Healthcare & Analytics and Print accounted for 71.5 % of Group revenue.

In the Technology segment, a revenue contribution of $\epsilon$ 42.4 million was generated in the reporting period (previous year: €38.9 million). Revenue in the Services segment increased to €14.3 million (previous year: €13.9 million).

Earnings situation

The market environment in the first quarter 2022 was significantly impacted by the ongoing Corona pandemic, the continued difficult situation in the procurement markets and Russia's attack on Ukraine. The earnings position of the technotrans Group nevertheless improved in the first 3 months of the year compared with the previous year.

Gross profit increased by 7.2 % to € 16.3 million in a period comparison (previous year: € 15.1 million). Despite higher material prices, the gross margin remained stable at 28.7% (previous year: 28.6%). The measures introduced to increase productivity in production and the successful passing on of price increases were essential for this development. EBITDA increased by 3.6 % to $\epsilon$ 4.8 million.

Despite the very tense market environment, the consolidated operating result (EBIT) was increased to € 3.1 million (previous year: € 2.9 million). Accordingly, the EBIT margin rose to 5.5 % (previous year: 5.4 %). ROCE reached 11.7 % (previous year: 9.1 %).

The positive earnings development is also reflected in the segment results, which are shown in the table below.

Net profit for the period reached € 2.0 million (previous year: € 1.9 million). Earnings per share increased to $\in$ 0.29 (previous year: $\in$ 0.27).

		Technology			Services	technotrans Group
		3M 2022	3M 2021	3M 2022	3M 2021	3M 2022	3M 2021
Revenue	€m	42.4	38.9	14.3	13.9	56.7	52.8
EBIT	€m	1.0 2	0.8	2.1	2.1	3.1	2.9
EBIT margin	%	2.3	2.1	14.8	14.9	5.5	5.4

Key figures of the segments

Assets	31/03/2022	31/12/2021
Fixed assets	67.8	68.2
Inventories	40.2	33.7
Trade receivables	27.6	21.6
Cash	11.3	18.7
Other assets	5.8	5.0
Total	152.7	147.2

Equity and Liabilities	31/03/2022	31/12/2021
Equity	87.1	84.8
Borrowings	32.0	34.0
Employee benefits	6.5	6.2
Provisions	4.2	4.0
Trade payables	8.5	6.0
Payments received	7.2	5.7
Other liabilities	7.2	6.5
Total	152.7	147.2

	$01/01 -$ 31/03/2022	$01/01 -$ 31/03/2021
Cash flow from operating activities	5.3	4.9
Net cash flow from operating activities	$-4.0$	6.5
Cash flow from investing activities	$-0.8$	$-1.6$
Free cash flow	$-4.8$	4.9
Cash flow from financing activities	$-2.6$	$-36$

Outlook

Expected framework conditions

The direct and indirect effects of the Corona pandemic continue to determine the global economic environment as major influencing factors. An additional factor of uncertainty has been added by Russia's attack on Ukraine in violation of international law, the consequences of which cannot be assessed in their entirety from today's perspective. Leading forecasting institutes have revised their growth expectations downwards.

Expected business development of the Group

The forecast published on March 15, 2022 in the 2021 Annual Report remains fundamentally unchanged. The same applies to the overall statement on future business development in 2022, on which the following comments are based:

In view of the pleasing performance in the first quarter of 2022 and the further increase in order intake, the Board of Management expects the profitable growth of the technotrans Group to continue in the 2022 financial year.

Uncertainty factors such as the Corona pandemic (including renewed lockdowns in major Chinese cities), distortions in the procurement markets and Russia's attack on Ukraine may lead to further supply bottlenecks and price increases for energy, raw materials and components.

technotrans continues to systematically pursue its chosen path of increasing stability and profitability in accordance with phase 1 of the Future Ready 2025 strategy. The Board of Management reiterates its expectation of achieving consolidated revenue of between € 220 million and € 230 million in the 2022 financial year, with an EBIT margin in a range between 5.0 % and 6.0 % and ROCE between 12.5 % and 14.0 %.

The forecast is subject to the assumption, that current challenges in the economic environment (COVID-19, supply chain problems, Russia's attack on Ukraine) do not worsen.

The medium-term goals of achieving a revenue in a range of € 265 to 285 million with an EBIT margin between 9.0 and 12.0 % and an ROCE above 15 % in the 2025 financial year remain valid. Acquisitions are not included in this figure.

https://www.technotrans.com

		$01/01 -$ 31/03/2022	$01/01 -$ 31/03/2021	2021
Trading price (XETRA closing price)
High	in $\epsilon$	29.50	28.50	31.95
Low	in $\epsilon$	21.55	24.50	23.90
Reporting Date	in $\epsilon$	22.85	25.55	29.50
Market Capitalisation Reporting Date	in $m \in$	157.8	176.5	203.8
Net profit per share	in $\epsilon$	0.29	0.27	1.02

	Recommenda-	Price target
Institution	tion
Hauck & Aufhäuser	buy	€	34.00
Kepler Cheuvreux	buy	€	28.50
LBBW	buy	€	30.00
Warburg Research	hold	€	32.00

https://www.technotrans.com/investor-relations/investor-news/directors-dealings.

Date threshold contact	Notifying Party	Notification	Voting Rights
08/03/2022	Luxunion S.A.	exceeding 20 %	20.12 %
25/01/2022	Universal-Investment	falling below 3 %	3.10 %
24/01/2022	LOYS Investment S.A.	exceeding 3 %	2.31%

Date
May 13, 2022
August 9, 2022
November 8, 2022
June 23, 2022
August 25, 2022
September 20, 2022
November 28 - 30, 2022

https://www.technotrans.com/investor-relations/financial-calendar

Contact

Frank Dernesch

Manager Investor Relations & Corporate Finance

+49 (0) 2583-301-1868 Phone: Fax: +49 (0) 2583-301-1054 E-Mail: investor-relations@technotrans.de

General enquiries

technotrans SE

Robert-Linnemann-Straße 17 48336 Sassenberg

Phone: +49 (0) 2583-301-1000 +49 (0) 2583-301-1054 Fax: E-Mail: info@technotrans.de

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	technotrans SE																ä
					Robert-Linnemann-Straße 17 · 48336 Sassenberg · Germany T +49 (0)2583 301-1000 · F +49 (0)2583 301-1030