technotrans SE

Quarterly Report • May 12, 2020

PRESENTATION OF THE RESULTS FOR THE FIRST QUARTER 2020

May 12, 2020

TECHNOTRANS COVID-19 UPDATE

• › Employees and company: extensive precautions have been taken to protect employees and to ensure production.
• › Operating activities: China, France, Spain and Italy in particular are restricted. German production sites have been producing without interruption since the beginning of the year.
• › Supply Chain: Supply of components and parts always guaranteed in Q1 2020.
• › Sales: All trade fairs, including "drupa 2020", have been cancelled or postponed by the organisers. Declining order volume expected in Q2 2020 due to partial production stoppages and/or short-time work at customers.
• › Cost structure: Comprehensive measures initiated to further adjust personnel and material costs.
• › Liquidity: Good liquidity based on solid assets and financial position.

BUSINESS DEVELOPMENT IN THE FIRST QUARTER 2020

Start of the year in line with previous expectations despite COVID-19 effects

› Printing industry: Quarterly revenues a bit weaker than expected.

› Other Markets: Order volume stable overall. Incoming orders since March COVID-19-related noticecably weaker.

› Electromobility: High number of project inquiries and projects in the field of battery and converter cooling for mobile applications, especially in the railway sector. Slowed down development of cable cooling for HPC charging stations.

› gwk: Operating activity normalized. SAP implementation completed.

› Strategic reorientation: First measures already implemented in March.

OUTLOOK BY MARKETS

KEY FIGURES FIRST QUARTER 2020

in € million	Q1 2019	Q1 2020	Δ
Revenue	53,1	52,2	-2%
EBITDA	5,1	3,5	-31%
EBIT	3,3	1,8	-47%
EBIT margin (%)	6,3%	3,4%
Net profit for period	2,2	1,1	-50%
Earnings per share (€)	0,33	0,16
	Dec. 31, 2019	March 31, 2020

	2019	2020
Equity	75,1	76,2	2%
Equity ratio (%)	51,4%	51,7%
Net debt	24,2	26,5	10%
Ø employees (FTE)	1.280	1.287	1%

• › First impacts of COVID 19 pandemic noticeable at sites in China, Italy, Spain and France.
• › Key figures nevertheless within the scope of the previous forecast.
• › Earnings-related special effects:
• › € 1.3 million in expenses from structural and personnel measures.
• › € 0.6 million income from the termination of fine proceedings (BaFin).

PERFORMANCE SEGMENT TECHNOLOGY

› Start to the fiscal year as expected, earnings burdened by special effects.

Annual EBIT/EBIT margin 2017-2019 (€million / %)

Annual revenue 2017-2019 (€ million) Revenue 2019/2020 by quarters (€ million) 38.1 35.2 35.7 39.4 38.0 Q1 Q2 Q3 Q4 EBIT 2019/2020 by quarters (€ million)

PERFORMANCE SEGMENT SERVICES

› Robust development despite COVID-19 pandemic.

Annual EBIT/EBIT margin 2017-2019 (€ million/%)

8 technotrans | May 12, 2020

KEY PERFORMANCE INDICATORS

Earnings per Share 2011 – 2020 (€) 0.47 0.48 0.47 0.67 0.96 1.09 1.76 1.79 0.88 0.16 2011 2012 2013 2014 2015 2016 2017 2018 2019 3M 2020

Free Cash Flow moderately negative (€ million) 3.6 13.2 -3.4 4.8 8.5 -12.6 0.2 -3.8 7.6 -2.1 2011 2012 2013 2014 2015 2016 2017 2018 2019 3M 2020 Equity base slightly improved (€ million / %)

FINANCIAL POSITION

Financial liabilities 2017-2020 short-term/long-term (€ million)

3M 2020 incl. Leasing liabilities of € 2.4 million (long-term liabilities) and € 2.0 million (short-term liabilities)

Net-Working Capital 2017-2020 (€ million)

BUSINESS MODEL

BUSINESS MODEL

Data as of Dec. 31, 2019.

THE TECHNOTRANS GROUP

Termotek founded 1998 (ttGROUP2011)

Hauptsitz (founded 1970) tt Taicang founded 2013 (ttGROUP2013)

gwk founded 1967 (ttGROUP2016)

Headquarter: technotrans SE,

Sassenberg, Germany

• › 1,466 employees
• › IPO: 1998
• › 18 locations, thereof 7 production sites (5 x Germany, China, USA)
• › Worldwide sales- and services network

TECHNOTRANS – THE GROUP

INTERNATIONAL FOOTPRINT

Revenue by region Employees by region

	2019		2018
	number	in %	number	$in\%$
Employees at year end	1,474	100 1	1,453	100
Employees by region
Germany	1,320	89.6	1,302	89.6
Other Europe	52	3.5	50	3.5
America	49	3.3	49	3.4
Asia and Australia	53	3.6	52	3.5

GROUP STRATEGY 2020 – 2025

"SHAPING THE FUTURE THROUGH DEVELOPMENT!"

• › Create an integrated Group to reinforce the global brand "technotrans"
• › Establish industry focus in sales independent from location
• › Enhance competecies of locations in order to prevent parallel structures
• › Improve innovative strength
• › Adjust organisational structure
• › Leverage additional synergies, expand shared service functions

2020 - 2025

GROUP STRATEGY 2020 – 2025

COMPONENTS OF THE SITE-RELATED STRUCTURAL MEASURES

GROUP STRATEGY 2020 – 2025

MID-TERM TARGETS

	Organic growth ›
Group	5 – 6 % p.a. ›
revenue	Increase market penetration with existing and new customers trough solutions at ›
€ 250m	the latest technical level
+	M & A ›
€ 50m	Opening up new markets and fields of application ›
(approx.)	Further sharpening technological expertise trough strategic additions ›
	Extend regional coverage ›

EBIT margin › Efficiency program

› Establish production sites with high specialisation of flexibility

• › Increase capacity utilisation, flexibility and quality level
• › Optimize production processes (operational excelence)
• › Consolidate production volumes
• › Realise additional synergy potentials
• › Reduce complexity– increase fixed cost degression

≈ 10 % p.a.

DER VORSTAND

Dirk Engel (Dipl. Kfm.)

• › Spokesman of the Board of Management (DOB 1967)
• › Since 2004 Head of Corporate Accounting, since 2006 Chief Financial Officer, since March 12, 2018 Spokesman of the Board of Management
• › Responsible for Finance & Administration (Finance/Controlling, Human Resources, IT, Legal & Compliance and Investor Relations)

Peter Hirsch (Dipl.-Ing.)

• › Member of the Board of Management (DOB 1972)
• › Since 2013 Business Development Manager, since 2014 Managing Director of termotek GmbH, since July 1, 2018 member of the Board of Management
• › Responsible for Technology & Operations (Research & Development, Electrical engineering, Production, Purchasing and Logistics)

Hendirk Niestert (Dipl.-Ing. FH)

• › Member of the Board of Management (DOB 1975)
• › Since 2007 Head of Service, since February 1, 2018 member of the Board of Management
• › Responsible for Markets (Sales Print, Quality Management and Service)

Michael Finger (Dipl.-Ing.)

• › Member of the Board of Management (DOB 1970)
• › Since May 2020 member of the Board of Management
• › Responsible for Markets (Sales New Markets, Marketing)

THE TECHNOTRANS SHARE

TECHNOTRANS SHARE AND SHAREHOLDER STRUCTURE

Market capitalisation: € 88.3 million (May 11, 2020) Dividend policy: Distribution of up to 50% of the consolidated net profit

PERFORMANCE OF SHARE PRICE AND RESEARCH

		Research
Bankhaus Lampe	TP € 10.00, hold	2020-03-24
Warburg Research	TP € 26.80, buy	2020-05-04
Hauck + Aufhäuser	TP € 24.00, buy	2020-03-11
Commerzbank	TP € 11.50, reduce	2020-04-15
Berenberg	TP € 12.00, hold	2020-03-13

2019:	Share Price as	Market Cap as
Max:	of	of
30.00 Min:	30/12/2019:	30/12/2018:
24.00	€ 18.70	€ 129.2 Mio.
	Share Price as of 11/05/2020: € 12.78	Market Cap as of 11/05/2020: € 88.3 Mio.

Aktienkurse = XETRA Schlußkurse

WHAT MAKES AN INVESTMENT IN TECHNOTRANS ATTRACTIVE?

• › Niche supplier for technologically sophisticated solutions
• › High market entry barriers for competitors due to special know-how in "liquid technology" and focus on individual solutions
• › Diversified product portfolio focused on growth markets
• › Limited cyclicity through product/market diversification and comprehensive complementary services
• › International network as a base for the development of new customers and markets
• › Growth strategy focused on revenue and profitability
• › Adequate participation of shareholders in the company's success, dividend policy generally provides for distribution of up to 50% of the consolidated net income
• › Committment to sustainability

FINANCIAL CALENDAR 2020

May 20, 2020	Virtual Annual Shareholder Meeting 2020
August 11, 2020	Interim Report 1-6/2020
November 10, 2020	Quarterly Communication 1-9/2020

EVENTS 2020

Deutsches Eigenkapitalforum, Frankfurt

As a result of the COVID 19 pandemic, numerous events (investor conferences, roadshows) were cancelled or postponed by the organisers. technotrans is available at all times for virtual meetings and conference calls.

CONTACT

Frank Dernesch Manager Investor Relations & Corporate Finance

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

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.

CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2020

ASSETS	31/03/2019	31/12/2019
	€ '000	€ '000
Non-current assets
Property, plant and equipment	34,605	33,268
Right-of-use assets	3,587	3,846
Goodwill	23,513	23,513
Intangible assets	7,217	7,493
Other financial assets	172	185
Deferred taxes	1,484	1,484
	70,578	69,789
Current assets Inventories	30,012	28,257
Trade receivables	26,070	24,039
Income tax receivable	501	349
Other financial assets	933	733
Other assets	2,342	1,926
Cash and cash equivalents	16,968	20,910
	76,826	76,214
Total assets	147,404	146,003

EQUITY AND LIABILITIES	31/03/2020	31/12/2019
	€ '000	€ '000
Equity
Issued capital	6,908	6,908
Capital reserve	19,097	19,097
Retained earnings	55,456	49,367
Other reserves	-6,414	-6,394
Net profit for the period	1,135	6,089
Total equity attributable to technotrans SE shareholders	76,182	75,067
Non-current liabilities
Borrowings	32,504	33,760
Employee benefits	811	809
Other financial liabilities (incl. IFRS 16)	2,334	2,607
Deferred taxes	590	657
Current liabilities	36,239	37,833
Borrowings	6,642	6,696
Trade payables	7,491	5,952
Prepayments received	4,418	4,242
Employee benefits	6,798	5,154
Provisions	3,389	3,891
Income tax payable	111	745
Other financial liabilities	3,186	2,991
Other liabilities	2,948	3,432
	34,983	33,103
Total equity and liabilities	147,404	146,003

CONSOLIDATED INCOME STATEMENT

	01/01 - 31/03/2020	01/01 - 31/03/2019
	€ '000	€ '000
Revenue	52,161	53,069
of which Technology	38,034	38,119
of which Services	14,127	14,950
Cost of Sales	-37,232	-36,234
Gross profit	14,929	16,835
Distribution costs	-5,974	-6,221
Administrative expenses	-5,212	-4,925
Development costs	-2,432	-2,055
Net impairment losses on financial and contract assets	-76	-199
Other operating income	1,022	480
Other operating expenses	-501	-581
Earnings before interest and taxes (EBIT)	1,756	3,334
Financial income	0	0
Financial charges	-167	-173
Net finance costs	-167	-173
Profit before tax	1,589	3,161
Income tax expense	-454	-913
Net profit for the period	1,135	2,248
Earnings per share (€)
basic / diluted (in €)	0.16	0.33

CONSOLIDATED CASH FLOW STATEMENT JAN. 1, 2020 – MAR. 31, 2020

01/01 -

	31/03/2020	31/03/2019
	€ '000	€ '000
Cash flow from operating activities
Net profit for the period	1,135	2,248
Adjustments for:
Depreciation and amortisation	1,763	1,762
Income tax expenses	453	913
Gain (-)/loss (+) on the disposal of property, plant and equipment	-3	-27
Foreign exchange losses (+)/gains (-)	-68	123
Net finance costs	168	173
Other non-cash changes	0	8
Change in:
Inventories	-1,755	-3,133
Receivables and other current assets	-2,632	-1,035
Liabilities and prepayments	1,501	3,672
Provisions and employee benefits	1,144	-90
Cash from operating activities	1,706	4,614
Interest paid	-146	-154
Income taxes paid/income tax rebates	-1,337	-690
Net cash from operating activities	223	3,770

01/01 -	01/01 - 31/03/2019		01/01 - 31/03/2020	01/01 - 31/03/2019
€ '000	€ '000		€ '000	€ '000
		Cash flow from investing activities
		Cash payments for investments in property, plant and equipment and in intangible assets	-2,343	-3,616
		Proceeds from the sale of property, plant and equipment	20	-22
		Net cash used for investing activities	-2,323	-3,638
		Cash flow from financing activities
3,448	5,200	Cash receipts from the raising of short-term and long-term loans	0	2,600
		Cash payments from the repayment of loans	-1,311	-1,798
		Distribution to investors	0	0
		Cash payments from the repayment of lease liabilities	-592	-584
		Net cash used in financing activities	-1,903	218
		Net increase/decrease in cash and cash equivalents	-4,003	350
		Cash and cash equivalents at start of period	20,910	15,566
		Net effect of currency translation in cash and cash equivalents	61	-15
		Cash and cash equivalents at end of period	16,968	15,901