technotrans SE

Investor Presentation • Mar 9, 2021

Titel, Thema

Future Ready Results for the 2020 financial year

Investor and Analyst Conference Call

March 9, 2021

technotrans | March 9, 2021 – Investor and Analyst Conference Call – Results 2020 1

Investor and Analyst Conference Call

Agenda

• 1. Management Summary
• 1. Financials
• 1. The technotrans share
• 1. Strategy "Future Ready 2025"
• 1. Outlook

Contact/Disclaimer Addendum

Key figures for the Financial year 2020

€ 190.5 m	€ 6.8 m	3.6 %	0.72 € /
Technology 137.7 m€ Services 52.8 m€	Technology –0.2 m€ Services 7.0 m€ (Adjusted: 9.4 m€)	Technology –0.1% Services 13.2% (Adjusted: 4.9%)	(prev. year: 0.88 €) 0.36 €
Consolidated Revenue	Consolidated EBIT	EBIT margin	EPS/ Dividend proposal
53.6 % (prev. year: 51.4%)	€ 21.5 m (prev. year: 24.2 m€)	€ 3.9 m (prev. year: 7.6 m€)	1,409 (prev. year: 1,474)

technotrans | 3 March 9, 2021 – Investor and Analyst Conference Call – Results 2020

Management Summary

Our Markets 2020

Diversification limits COVID-19 related impacts

Print

• Sharp revenue decline due to Corona
• Despite difficult market environment revenue with a number of OEMs increased
• Slight recovery in the fourth quarter

Plastics

• Strong Revenue growth realised

Laser & Machine Tool Industry

• Corona related impacts in addition to structural changes weighs on revenue

Growth Markets

• Stable development overall
• technotrans enhances market postion on e-mobility rail markets; attractive mid-term projects generated

Technical Documentation

• Revenue below previous year due to Corona related travel restrictions

Providing solid results in a challenging year

		RESULTS 2020	Guidance 1 March 10, 2020 (withdrawn on April 30th, 2020 due to COVID-19)		Guidance 2 Nov. 10, 2020
Revenue	€m	190.5	204 - 214	-	185	
EBIT	€m	6.8	6.0 – 10.7		4.6 – 5.6	
EBIT margin	%	3.6	3.0 – 5.0		2.5 – 3.0	
Equity ratio	%	53.6	> 50		> 50	
Free Cashflow	€m	3.9	positive		positive	

• Profitability maintained despite structural costs
• Results fully in line even with withdrawn guidance no. #1 sole exception: revenue

Revenue and EBIT

Revenue

Adjusted EBIT margin above previous year generated

• Consolidated revenue of € 190.5m only 8.4 % below previous year
• Fourth quarter 2020 much better than expected
• Operating result (EBIT) at € 6.8m (prev. year: € 8.3m).
• EBIT margin at 3.6 % (prev. year: 4.0%)
• Lower result is attributable to the Corona-impact and the following non-recurring effects:

  • structural costs: € 3.2 m > one-off earnings: € 0.6 m

• EBIT adjusted at € 9,4m (prev. Year: € 9.7m)
• EBIT-Margin adjusted at 4.9 % exceeded previous year's adjusted EBIT of 4.7 %

Balance sheet Financials

Investment & depreciation

• The financial situation of the technotrans group remained solid and in order even during the corona crisis.
• Despite the construction of a new production plant in Holzwickede, total assets increased only moderately by 1.4 % to € 148.1m (previous year: € 146.0m).

technotrans | 7 March 9, 2021 – Investor and Analyst Conference Call – Results 2020

Financial position

Op. Cash Flow impacted by decreased net profit

Net-Working Capital ratio slightly above 20% target

Financial liabilities & cash indicate sound financial position

All figures in €m unless not stated differently.

technotrans | 8 March 9, 2021 – Investor and Analyst Conference Call – Results 2020

Segment Technology

• Revenue of € 137.7m in segment Techology generated (prev. year: € 148.4 m)

• Due to strong sales in fourth quarter only 7.2 % below previous year

• Segment EBIT despite lower revenue with € -0.2m nearly on previous year's level (€ +0.05m)

• Segment return at -0.1 % (previ. year: 0.0 %)
• Adjusted for non-recurring effects of € 2.0m, segment EBIT reached € 1.8m. Profitability was at 1.3 % respectively

Segment Services

EBIT 2019/2020 by quarters (€ million)

• Segment revenue at € 52.8m (prev. year: € 59.5m)

• Decrease of 11.4% compared to previous year caused by Corona related travel restrictions.

• Segment EBIT robust as expected at € 7.0m (prev. year: € 8.3m)

• Segment profitability at 13.2 % (prev. year: 13.9 %)
• Adjusted for non-recurring effects (0.6 €m), EBIT margin of the segment is at previous year's level of 14.4%

Sound share price development

Data as of March 4, 2021

-	Share price:	€ 27.40
-	Market Cap:	€ 189.3m

Performance since January 2020:

• Share price: + 46.6%
• Market Cap: + € 60.1m
  -

Current Analyst Recommendations:

• Bandwidth: 24.00 – 32.00 € - Recommendation: 2x buy / 1x hold

Dividend proposal to Annual General Meeting 2021 on May 7, 2021:

€ 0,36 ≈50% of consolidated net profit of the group

11 technotrans | March 9, 2021 – Investor and Analyst Conference Call – Results 2020

Future Ready 2025: Strategic Plan

2021 – 2022 Phase I: Stability & Profitability

2023 – 2025 Phase II: Profitable growth & Investment

• Continuation of the initiated change process based on existing core competencies
• Merger of individual group companies
• Use of group-wide synergy effects through central control of the functional areas
• Strengthening technotrans as one brand

Accelerated growth based on:

• Focus on key markets (Plastics, Print, Energy Management, Healthcare & Analytics)
• New technologies
• International business expansion

Strategy "Future Ready 2025"

Future Ready 2025: Main Milestones 2021

2021 – 2022 Phase I: Stability & Profitability

• Continuation of the initiated change process based on existing core competencies
• Merger of individual group companies
• Use of group-wide synergy effects through central control of the functional areas
• Strengthening technotrans as one brand

New Website – Go Live

Consolidation of group companies

Establish umbrella brand

ESG – Next steps

Strategy "Future Ready 2025"

Consolidation of group companies

Consolidation in terms of

• organisational merging to increase efficiency
• market focus, through technological and sales competence for our customers

technotrans | 15 March 9, 2021 – Investor and Analyst Conference Call – Results 2020

Consolidation of group companies

Company	Markets
ttSE/KLH	Print, Energy Management, Laser & Machine Tool Industry
gwk/Reisner	Plastics
termotek	Healthcare & Analytics, Laser & Machine Tool Industry (small size)
gds	Technical Documentation

technotrans | 16 March 9, 2021 – Investor and Analyst Conference Call – Results 2020 Strategy "Future Ready 2025"

Sustainability – moving forward step by step

• Reisner: New energy efficient location built in less than 9 months in 2020
• Now 2 out of 5 plants in Germany are KfW 55 standard.

Website Relaunch: - technotrans implements a dedicated page for sustainability.

chnotrans										Kritecture	Kennzohl	TEFFAS Indiator"	Unhel
										Ressourceneffiziona
										Energieverbrouch = Produktion	Gesomtmenge ")	E01-01	GWT
										Energieverbrauch - Produktion CO, Aquivalent	Gesamtmenge ")	[02-01	Tacl. t CO, Eq
										Treibhauspotenzial	Durchnittliches GWP der Kattemittel ")
							nnual Report			Lebensdauer der Produkte			Johro
										Recycling
										Recylingfähigkelt eigene Produkte			3
	120									Mitorbeiterstruktur
										Albermitruktur und -vertellung	Nach Altengruppen	503-01
											bis 20 Jahre		FTE
			ture Ready								21-30 Johne		FTE
											21-40 Jahre		FIF
											41-50 Johre		FIL
											über 50 Jahre		FTE
										Weibliche/diverse Mit arbeiter im Konzem	Anteil an der Belegschaft (Mitarbeiter)		8
											Anteil an der Belegschaft (FTE)	510-01	8
									o	"Welbliche Führungskräfte im Konzern
										(erste und zweite Führungsebene)"	Anteil innerhalb der Führungskräfte		8
										Auszubildende Konzem			Anzahl
										Fluktuotion	Anteill an der Belegschaft		8
										Mitarbeitergesundhelt
										Krankheltsquote	Antell an Gesamtarbeitszelt		3
										Mitarbeiterqualifikation
										Mitarbeiter im Konziem, die den bechnotzans
										Verhaltenscodex erhalten haben	Anteill an der Belegschaft		8
										Ovollfizierung/Aus- und Fortbildung	Ausgoben pro FTE	502-02	EUR
										Lieferkette
									Prozess	"Anteil Lieferanten, die auf Einhaltung von
										ESG Kriterien bewertet wurden"		506-01	36
										"Anteil Lieferanten, die auf Einhaltung von ESG Kriterien auditiert wurden"		506-07	8
										Zahlungen an politische Parteien	Antell am Gesamtumsalz	GO1-01	8
									Sozioles	Strof zahlungen für Wettbewerbsverstöße		V 01-01	EUR
										*) Produktionstandor to in Deutschiana Mainzerhosen, Baden-Baden, Bad Dobergo, Holl Mollylicked ei

Annual Report 2020:

• technotrans enhances ESG reporting by introducting and reporting selected EFFAS indicators.

technotrans | 17 March 9, 2021 – Investor and Analyst Conference Call – Results 2020

Our markets in 2021

Outlook Plastics

• Stable development to be expected.
• Merger of gwk/Reisner enhances our value for clients

Energy Management

• Stability through mid-term order book
• Enhanced market position offers additional potential for further projects

Healthcare & Analytics

• We intend to leverage our sales successes of 2020 in medical technology.
• In addition we expect a stable development in scanner applications.

Print

• Flat market development expected.
• We will support our customers as a preferred development partner.

Laser & Machine Tool Industry

• Markets will remain challenging.

technotrans | 18 March 9, 2021 – Investor and Analyst Conference Call – Results 2020 Outlook

Main Financial Targets 2021:

technotrans | 19 March 9, 2021 – Investor and Analyst Conference Call – Results 2020

Outlook

Guidance 2021/2025: Organic growth track

*) Pro forma presentation of revenue composition with amended allocation of initial installation & commissioning business.

technotrans | 20 March 9, 2021 – Investor and Analyst Conference Call – Results 2020 Investor and Analyst Conference Call

For 2020, it has been confirmed, that

• technotrans remains profitable also under difficult conditions.
• technotrans remains successful in winning new business despite of the critical economic conditions.
• technotrans remains an attractive investment based on the growth potential that is being extended even in the currently challenging environment.

Contact

Investor Relations

Frank Dernesch Manager Investor Relations & Corporate Finance

Tel. +49 (0)2583 301-1868 Fax +49 (0)2583 301-1054 frank.dernesch@technotrans.de

technotrans | 22 March 9, 2021 – Investor and Analyst Conference Call – Results 2020

This presentation contains statements on the future development of the technotrans Group.

These reflect the present views of the management of technotrans SE and are based on the corresponding plans, estimates and expectations. We point out that the statements are subject to certain risks and uncertainties which could mean that the actual results differ considerably from those expected.

Addendum

24 technotrans | 09.03.2021

Consolidated Balance Sheet as of December 31, 2020

Assets				Equity and liabili ties
	Note	31/12/2020	31/12/2019		No
		€ 0000	€ '0000
Non-current assets				Equity	0
Property, plant and equipment	(1)	36,781	33,268	Issued capital
Right = of = use a ssets	(2)	3,210	3,846	Capital reserve
Goodwill	(3)	23,513	23,58	Retained earnings
Intangible assets	(4)	7016	7,493	Other reserves
Other financial assets	(5)	151	185	Net profit for the period
Deferred toxes	(28)	1,142	1,484	Total equity attributable to technotrans SE shareholders
		71,813	69789	Non-controlling interests in equity
Current a ssets
Inventories	(6)	26,702	28,257	Non-current liabilities
Trade receivables	(1)	21,082	24,039	Borrowings	0
Income tax receivable	(8)	103	ਤੇ ਪੱਚੇ	Employee benefits	C
Other financial assets	(a)	246	733	Other financial liabilities	0
Other assets	(9)	2,122	1,926	Deferred toxes	(2
Cash and cash equivalents	(10)	25,749	20,910
		76,304	76,214
				Current liabilities
Total assets		148,117	146,003
				Borrowings	0
				Trade paya bles	0
				Prepayments received	0
				Employee benefits	C
				Provisions	C
				Income tax payable	0
				Other financial liabilities	0
				Other liabilities	0

* Adjustment of the previous year to show the non-controlling interests. For additional information please refer to note "II. Group a) Consolidated Companies" of the Annual Report 2020.

technotrans |

Consolidated income statement

	Note	2020	2019
		€ 0000	€ '0000
Reverse	(20)	190,454	207,927
of which Technology		137,716	148,424
of which Services		52,738	ਦਰ 203
Cost of Sales	(21)	- 137,012	-146,612
Gross profit		53,442	61,315
Distribution costs	(22)	-21,226	-25,606
Administrative expenses	(23)	-18,375	-18,760
Development costs	(24)	-7,347	-7,575
Net impairment losses on financial and contract assets	(0)	-165	-510
Other operating income	(25)	1,511	1,911
Other operating expenses	(26)	-1060	-2437
Earnings before interest and taxes (EBIT)		6,780	8.338
Financial income		86	30
Financial charges		=746	-763
Net finance costs	(27)	-660	-133
Profit before tax		6,120	8,205
Income toxexpense	(28)	=1,163	-2,116
Net profit for the period		4,957	6,089
of which:
Profit attributable to technotrans SE shareholders		4,956	6,088 *
Profit attributable to non-controlling interests		1	1 *
Earnings per sham (€)	(29)
basic / diluted		0.72	0.88

* Adjustment of the previous year to show the non-controlling interests. For additional information please refer to note "II. Group a) Consolidated Companies" in the Annual Report 2020.

technotrans | 26 March 9, 2021 – Investor and Analyst Conference Call – Results 2020

Consolidated cash flow statement Jan. 1, 2020 – DEC. 31, 2020

	Note	2020	2019
		€ 000	€ '0.00
Cash flow from operating activities	(30)
Net profit for the period		4,957	6,089
Adjustments for:
Depreciation and amortisation		7,069	7,670
Income tox expenses	(28)	1,163	2,115
Gain (-) / loss (+) on the disposal of property, plant and equipment	(25). (26)	-49	=142
Foreign exchange losses (+) / gains (-)		=320	- 46
Net finance costs	(27)	660	133
Other non-cash changes from leases	(2)	= 202	0
Cash flow from operating activities before working capital changes		13.278	15,819
Changein:
Inventolies	(5)	1.655	38
Receivables and other current assets		2,983	3,402
Liabilities and prepayments		-3,856	1,178
Provisions and employee benefits	(16). (17)	-370	-863
Cash from operating activities		13,590	19,574
Interest received		34	15
Interest paid		-659	-630
Income taxes paid/income tax rebates		=738	= 2,158
Net cash from operating activities		12,227	16,801
Cash flow from investing activities	(31)
Cash payments for investments in property, plant and equipment and in intangible assets		-8,412	-9,363
Proceeds from the sale of property, plant and equipment.		100	210
Net cash used for investing activities		-8,312	=9,153

	Note	2020	2019
		€ 000	€ '0000
Cash flow from financing activities	(32)
Cash receipts from the raising of short-term and long-term loans		10.500	17,500
Cash payments from the repoyment of loans		-6,696	-11,431
Distribution to investors		0	=6,079
Cash payments from the repayment of lease libbilities		-2,620	=2,356
Net cash used in financing activities		1,184	=2 366
Change in oash and cash equivalents		5,099	5,282
Cash and cash equivalents at start of period		20,910	15,566
Net effect of currency translation in cash and cash equivalents		-260	62
Cash and cash equivalents at end of period	(10), (33)	25,749	20,910

technotrans | 27 March 9, 2021 – Investor and Analyst Conference Call – Results 2020

Shareholder's information

technotrans – an attractive investment

− Profitable growth strategy − Technological leadership − Clear market focus − Diversified customer base − International network − Sustainability committment − Attractive dividend policy	172,7 € mn + 34% in the year 2020 (18,70€ to 25,00 €)	up to 50% of consolidated net profit	Gerlin/Midlin/Luxempart 25.1 % Objectif Small Cap 5.3 % Allianz Vie 5.1 % LOYS Investment 4.7 % Universal Investment 3.4 % MONOLITH 3.0 % FREE FLOAT 53.4 %	Commerzbank HOLD 24,00€ Hauck & Aufhäuser BUY 32,00€ Warburg BUY 31,10€
Equity Story	Market Cap Dec 31, 2020	Dividend Policy	Current Shareholder Structure	Research Coverage

Share Price as of March 8, 2021 (Xetra closing):	€ 28.50
Dividend prososal to Annual General Meeting 2021:	€ 0.36

technotrans | 28 March 9, 2021 – Investor and Analyst Conference Call – Results 2020