technotrans SE

Investor Presentation • Mar 12, 2019

Presentation of the results for the Financial Year 2018

March 12, 2019

Management

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 and 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, Business Units, 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, Service, Quality Management and Marketing)

Highlights Fiscal Year 2018 – technotrans heads for further growth

• › Growth – Group revenue climbes further to € 216,3 million (+ 5.5%)
• › Profitability - EBIT of € 17,4 million remained unchanged
• › Performance – growth contributions from both segments: Technology +6.0% and Services +4.0%
• › Diversification – Revenue outside the printing industry further increased
• › Environment – Additional expenses for growth and due to weaker economy
• › M&A activities – Competences enhanced through acquisitions
• › Conversion to SE - completed
• › Sustainability – Construction of new Termotek production site initiated
• › Management – Board of Management complete again

Revenue and Earnings 2009 – 2018

EBIT (million €) and EBIT margin (%)

• › Segments Technology and Services contribute to revenue growth
• › High dynamics of the growth markets

$$
\angle \quad \text{CAGR}_{2018/2009} = 11.4\%
$$

• › EBIT remaining unchanged
• › Changed mix of products
• › Expenses for further growth are affecting profitability

Key Performance Indicators

Dividend Policy

The Board of Management proposes a dividend distribution of € 0.88 for FYE 2018

dividend in € / dividend yield in %

Markets and reporting segments

Development Segment Technology

2016 2017 2018

EBIT 2018 by quarters (million €)

12.03.2019 Presentation of the results for the Financial Year 2018 8

Development Segment Services

EBIT/EBIT-Rendite 2016-2018 (million € / %)

EBIT 2018 by quarters (million €)

Balance Sheet Ratios

ASSETS	FYE 2018		FYE 2017
	mio. $\epsilon$	$\frac{0}{2}$	mio. $\in$	$\frac{0}{0}$
Non-current assets	61.4	45.1	57.8	46.1
Current assets	74.6	54.9	67.5	53.9
Total assets	136.0	100.0	125.3	100.0

ASSETS	FYE 2018		FYE 2017			LIABILITIES		FYE 2018		FYE 2017
	mio. €	%	mio. €	%			mio. €	%	mio. €	%
Non-current assets	61.4	45.1	57.8	46.1		Equity	75.2	55.3	69.8	55.7
Current assets	74.6	54.9	67.5	53.9		Non-current liabilities	28.7	21.1	23.3	18.6
						Current liabilities	32.1	23.6	32.2	25.7
Total assets	136.0	100.0	125.3	100.0		Total assets	136.0	100.0	125.3	100.0

Net Debt & Net Debt / EBITDA ratio 2016-2018 (million €)

12.03.2019 Presentation of the results for the Financial Year 2018 10

14.8 15.6

2016 2017 2018

Net-Working Capital 2016-2018 (million €)

Liquid assets 2016-2018 (million €)

Financial Position

Financial liabilities 2016-2018 short-term/long-term (million €)

23.9

12.03.2019 Presentation of the results for the Financial Year 2018 11

42.6

International Footprint

Revenue by region (2018/2017)

Investing in technotrans shares an attractive proposition:

• Niche focused business model
• High entry barriers due to specific know how in the area of fluid management and focus on customized solutions
• Diversified product portfolio focused on growth markets
• Limited cyclicity through extensive additional services
• International network as a base for the development of new customers and markets
• Growth strategy focused on revenue and profitability
• Attractive divided policy
• Committment to sustainability

BUSINESS MODEL

Core Competencies

• Leading system supplier with the core competence of liquid technology
• Customer-specific solutions for temperature control/cooling, filtration as well as pumping and spraying technology for/with fluids
• Extensive range of individual services world-wide (spare parts, installations, maintenance and technical documentation)

The technotrans group

• 1,450 employees
• IPO: 1998
• 19 locations, thereof 7 production sites (5 x Germany, PRC, USA)
• Global footprint

Worldwide presence / 19 sites

Core competencies and markets

Core Competencies	Temp. Control / Cooling	Filtration	Pumping / Spraying	Services techn. doc.
Markets
Printing Industry
Tooling Industry / Stamping and Forming Tech.
Laserindustry
Plastics processing industry
Elektromobility
Semiconductor-/Medical-/ Scanner Technology

Technology: Products and devices

• Dampening Solution Circulators
• Filtration Systems
• Central Cooling Systems
• Ink Supply Systems
• Modular and compact temperature controlling systems
• Industrial chillers and cooling plants

• Water treatment systems

• Cooling Systems

• Preparation and filtration for cooling lubricants
• Spray lubrication
• Dosing systems

• Cooling systems for diode, fibre and CO² lasers

• Mobile cooling systems for batteries
• Stationary cooling systems for batteries
• Active and passive cooling for charging cables for fast charging stations

Common requirements of customers which technotrans fulfills: Individual solution, highest reliability, worldwide service network

Service Products:

396 employees in segment services as of 31.12.2018

Growth Strategy

Shareholder - Value

THE TECHNOTRANS SHARE

technotrans share / shareholder structure

Market capitalisation: EUR 190.7 million

(as of March 11, 2019)

ISIN/Code	DE000A0XYA7/AOXGA
establishment/IPO	1970/1998
financial year	01.01. – 31.12.
share capital	6,907,665.00
number of shares	6,907,665
stock markets	XETRA, Frankfurt
designated sponsors	Bankhaus Lampe, ODDO SEYDLER
index	Prime Standard

Performance of share price and research

					110% 100%

		Research
Bankhaus Lampe	TP € 35.00, buy	2019-02-22
Pareto Securities AS	TP € 37.60, buy	2019-02-15
Warburg Research	TP € 40.70, buy	2019-02-18
Hauck + Aufhäuser	TP € 41.00, buy	2019-02-19
HSBC	TP € 34.00, buy	2019-12-18
ODDO BHF	TP € 38.00, neutral	2019-02-18
Commerzbank	TP € 35.40, buy	2019-02-18

2018: High: 47.90 Low: 24.00	Share Price as of 28/2/2018: € 24.50	Market Cap 28.12.2018: € 169.2 Mio.
2019: High: 30.00 Low: 24.70	Share Price as of 11/03/2019: € 27.60	Market Cap 11.03.2019: € 190.7 Mio.

12.03.2019
------------	--

Financial Calendar 2019

May 7, 2019	Quarterly Communication 1-3/2019
May 10, 2019	Annual Shareholder Meeting 2019
August 6, 2019	Interim Report 1-6/2019
November 5, 2019	Quarterly Communication 1-9/2019

Events 2019

April 4, 2019	Bankhaus Lampe Deutschlandkonferenz, Baden-Baden
Juni 28, 2019	M.M. Warburg Highlights, Hamburg
September 23 - 25, 2019	Berenberg and Goldman Sachs Eighth German Corporate Conference, München
Oktober 10, 2019	Capital Market Day in Baden-Baden
November 25 - 27, 2019	Deutsches Eigenkapitalforum, Frankfurt

Your contact

Frank Dernesch

Manager Investor Relations & Corporate Finance

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

Note

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 Income Statement

	Note	2018	2017
		€ '000	€ '000
Revenue	(18)	216,286	205,095
of which Technology		156,476	147,570
of which Services		59,810	57,525
Cost of Sales	(19)	$-147,021$	$-136,849$
Gross profit		69,265	68,246
Distribution costs	(20)	$-26,535$	$-26,453$
Administrative expenses	(21)	$-19,407$	$-18,596$
Development costs	(22)	$-7,980$	$-7,528$
Other operating income	[23]	3,189	3,907
Other operating expenses	[24]	$-1,181$	$-2,138$
Earnings before interest and taxes (EBIT)		17,351	17,438
Financial income		499	145
Financial charges		$-543$	$-620$
Net finance costs	(25)	$-44$	$-475$
Profit before tax		17,307	16,963
Income tax expense	(26)	$-4,924$	$-4,693$
Net profit for the period		12,383	12,270
of which:
Profit attributable to technotrans SE shareholders		12,383	12,191
Profi/loss attributable to non-controlling interests		0	79
Earnings per share $(\epsilon)$	[27]
basic / diluted		1.79	1.76

Consolidated Balance Sheet

ASSETS
	Note	31/12/2018	31/12/2017
		€ '000	€ '000
Non-current assets
Property, plant and equipment	$[1]$	28,583	25,477
Goodwill	[2]	23,513	23,144
Intangible assets	$[3]$	7,693	6,888
Other financial assets	(4)	162	231
Deferred tax	(26)	1,466	2,034
		61,417	57,774
Current assets
Inventories	(5)	28,296	26,589
Trade receivables	(6)	27,111	24,182
Income tax receivable	$[7]$	629	83
Other financial assets	[8]	758	596
Other assets	[8]	2,255	1,285
Cash and cash equivalents	(9)	15,566	14,798
		74,615	67,533
Total assets		136,032	125,307

EQUITY AND LIABILITIES
	Note	31/12/2018	31/12/2017
		€ '000	€ '000
Equity	(10)
Issued capital		6,908	6.908
Capital reserve		19,097	19,097
Retained earnings		43,282	37,797
Other reserves		$-6,426$	$-6.440$
Net profit for the period		12,383	12,191
Total equity attributable to technotrans SE shareholders		75,244	69,553
Non-controlling interests in equity		Ω	197
		75,244	69,750
Non-current liabilities
Borrowings	[11]	25,956	19.187
Provisions	(15)	942	1,206
Other financial liabilities	[12]	614	1.073
Deferred tax	(26)	1,220	1,833
		28,732	23,299
Current liabilities
Borrowings	(11)	8,431	3,837
Trade payables	(13)	6.712	6,062
Prepayments received	[14]	3,115	5,805
Provisions	(15)	9,751	9.769
Income tax payable	[16]	700	3,203
Other financial liabilities	(17)	800	1,285
Other liabilities	[17]	2,547	2,297
		32,056	32,258
Total equity and liabilities		136,032	125,307

Consolidated Cash Flow Statement

	Note	2018	2017
		€ '000	€ '000
Cash flow from operating activities	(28)
Net profit for the period		12,383	12,270
Adjustments for:
Depreciation and amortisation		5.248	5.217
Income tax expenses	[26]	4924	4,693
Gain (-) / loss (+) on the disposal of property, plant and equipment	[23, 24]	$-106$	$-253$
Foreign exchange losses (+) / gains (-)		$-33$	$-180$
Net finance costs	[25]	44	475
Cash flow from operating activities before working capital changes		22,460	22,222
Change in:
Inventories	(5)	$-950$	$-980$
Receivables and other current assets		$-3.993$	$-6.036$
Liabilities and prepayments		$-2.301$	$-2,127$
Provisions	[15]	$-404$	1194
Cash from operating activities		14,812	14,273
Interest received		26	14
Interest paid		$-510$	$-586$
Income taxes paid / income tax rebates		$-8,016$	$-2.292$
Net cash from operating activities		6,312	11,409
Cash flow from investing activities	[29]
Cash payments for investments in property, plant and equipment and in intangible assets		$-8,381$	$-11.471$
Cash payments for the acquisition of consolidated companies		$-2.065$	$-248$
Proceeds from the sale of property, plant and equipment		381	460
Net cash used for investing activities		$-10,065$	$-11,259$

	Note	2018	2017
		€ '000	€ '000
Cash flow from financing activities	(30)
Cash receipts from the raising of short-term and long-term loans		15,200
Cash payments from the repayment of loans		$-3.837$	$-5,068$
Distribution to investors		$-6.079$	$-3.799$
Payment for the acquisition of non-controlling interests		$-820$
Net cash used in financing activities		4,464	$-8,867$
Net increase/decrease in cash and cash equivalents		711	$-8.716$
Cash and cash equivalents at start of period		14.798	23,929
Net effect of currency translation in cash and cash equivalents		57	$-415$
Cash and cash equivalents at end of period	(9, 31)	15,566	14.798