technotrans SE

Investor Presentation • May 4, 2016

Business Development 2016

QUARTERLY COMMUNICATION Q1

04.05.2016

Member of the technotrans group

First quarter 2016

• Weak start to 2016 financial year as expected

• Revenue € 30.4 million after € 30.6 million in 01/15

• EBIT € 2.1 million, EBIT margin 6.8 % (previous year 7.5 %) negative currency translation effects

• Technology segment (66 % of the consolidated revenue) weak start -3.5 % comprising +1.9 % from print, -10.4 % from non-print

• Services segment (34 % of the consolidated revenue) grows overall +5.7 %, Technical Documentation higher than previous year (+26.4 %)

• EPS in Q1 stable at the previous year level with $\epsilon$ 0.22

• Equity ratio reaches 67.5 %, net liquidity increases to €12.9 million

• Employee total increases to 824 from 786 in Q1/15

BUSINESS MODEL

The group of companies

• leading system supplier with the core $\sum$ competence of liquid technology
• customer-specific solutions for $\sum$ temperature control and filtration as well as pumping and spraying technology for/with fluids
• extensive range of individual services $\sum$ world-wide

The business model

reporting segments

• technology (568 employees)

• services $\sum$ (256 employees)

Segment technology Products and markets

Product portfolio	Market overview	Positioning
> Dampening solution systems	$\rightarrow$ Printing industry	$>$ World market leader in print
$>$ lnk supply	> Laser industry	area
> Industrial cooling solutions	$>$ Stamping and forming technology	$>$ Established system and development partner in
> Preparation of cooling		mechanical and plant engineering
lubricants	$>$ Tooling industry
> Spray Iubrication systems	> Battery and converter	> Innovation partner for new technological applications in
> X-ray and scanner temperature control	> Medical and scanner technology	niche markets
Battery/converter cooling

Segment services Products and markets

Product portfolio	Market overview	Positioning
Spare parts $\sum$	$\rightarrow$ Printing industry	$>$ World market leader for
> Customer Service Support	> Laser industry	services in the printing industry
Modernisation	> Stamping and forming technology	$\angle$ Extension of service activities
Maintenance		in Non-Print-Markets
Installations	> Tooling industry	> Additional demand for
Engineering	Battery and converter	services and installation within the battery, converter
	Medical and scanner	and scanner technology
Technical documentation $\sum$	technology	Steady expansion of $\sum$ worldwide range of services

Market and prospects

Leading position in key markets

Print

• World market (equipment sales): +0.5 percent CAGR up until 2017 (NPES), stable market

• Industry in transition: growth segments, e.g. digital and $\sum$ flexographic printing gaining in importance compared with classic offset printing

• technotrans: world market leader for peripheral solutions

Laser cooling

• World market for laser applications + 5.5 percent CAGR up until 2019 (Strategies Unlimited), dynamic growth

• High growth potential also for contract laser welding (additive $\sum$ manufacturing)
• Common expansion of full-line principle

Market and prospects

Expansion in promising markets

Stamping and forming technology, machine tools

• German machine and plant construction industry (VDMA)
  expecting zero growth in 2016 for mechanical engineering industry

• Positive impulses: expansion of market position in the niche for temperature control, filtration and lubrication

Growth markets

• Scanner technology in aviation safety: + 7 percent CAGR up until 2020 (homelandsecurityresearch)

• Medical technology / magnetic resonance tomography: +3.5 percent CAGR up until 2017 (TMR)

• Great innovation potential for technotrans

Worldwide presence

Reference customers

HEIDELBERG-	manroland web systems	manroland sheetfed	SAUER GmbH Ultrasonic	PHILIPS	océ
MULLER MARTINE	$\star$ mitsubishi	EDFEINTOOL	Mohn media	C COHERENT.	BUHLER
KOMORI	elexxion AG Dental-Laser	S Sart	$\Rightarrow$	SONY	X SEIKI
INDEX	Function for Innovation	EOS	SINGULUS Smart Solutions To Drive The Future.	6055	$\overline{\mathsf{IST}}$
$\mathcal{Q}_{\Theta}$ KBA	DMG MORI	$\Omega$ LEYBOLD OPTICS	SIEMENS	SCHULER	eldec
UD	ABB	$\mathcal{L}$ Len S	WIFAG	Kodak	TRUMPF
U HAUNI	☎ WINDMOLLER & HOLSCHER	Miyakoshi	smiths detection bringing technology to life	vossloh KIEPE	Alcon
Rapiscan systems An OSI Systems Company	rofin	ar	Asclepion Laser Technologies	RYOBI	STOLLE MACHINERY
Dräger	ACTIA I + ME ACTIA GmbH	AKASOL	Bystranic	DATRON	AVERTIZ WEER

Long-term growth strategy

GROWTH MARKETS

• steady expansion
  of new niche markets:

• medical care
• safety
• storage
• semiconductor
• and others

MACHINERY & PLANT ENGINEERING

• Development partner for
  new technologies and applications $\rightarrow$
• ongoing product diversification
• platform strategy $\rightarrow$
• laser
• turning/milling/grinding/polishing
• cutters/presses
• other applications

PRINT INDUSTRY

Development partner for new technologies and applications ongoing product diversification $\sum$ platform strategy

• offset print - digital print - flexo print - other printing processes

SERVICE BUSINESS

Expansion/establishment of international service business in all market areas:

• spare parts management - installation - maintenance - techn. documentation (gds) - training

Growth strategy 2017/2018

> Target: technotrans grows stronger than the market

04.05.2016 Member of the technotrans group

Non-organic growth / growth-driving acquisitions

Termotek GmbH, D-Baden-Baden

• A technotrans company since 2011 $\,>\,$
• 70 employees, revenue 2015 € 14.8 m $\left\langle \right\rangle$
• Products ranging from air-to-water heat exchangers for low- $\sum$ power lasers, specifically for medical applications, and air-towater compressor-based chillers for diode lasers in the medium performance range (up to 200 watts), through to airto-water compressor-based chillers for high-power diode lasers.

KLH Kältetechnik GmbH, D-Bad Doberan/CN-Taicang

• A technotrans company since 2013 $\,$
• 119 employees, revenue 2015 € 20.3 m $\left\langle \right\rangle$
• KLH Kältetechnik GmbH has specialised in universal cooling $\sum$ systems from 0.8 kW to 300 kW as well as energy-conscious industrial cooling equipment and plant engineering up to 1 MW.

FINANCES AND OUTLOOK

Turnover since 2006

growth resumed after transformation

EBIT/EBIT-Margin since 2006

Solid increase in profit hand in hand with continuing high investment in future growth

Control paramenter

Equity/Equity ratio million $\in$ 70 63.2% 59.9% 63.7% 68.0% 70% 60.0% 58.1% 60 55.5% 60% 50.0% $47.7\%$ 45.2% 56.9 50 53.9 50% $51.7$ 40 40% 41.8 30 30% 20 20% 10 10% $\Omega$ 0%

2010

2011

2012

2013

2014

2015

2006

2007

2008

2009

The financial year 2016 by quarters

TURNOVER AND EBIT BY QUARTERS

technotrans grows according to plan

• $>$ Subdued start to 2016 financial year contrasting with strong revenue and profit growth in previous year.
• $\rightarrow$ Renewed growth in print compensates for weakness in laser industry and machine tool sector

• EBIT stable > $€$ 2.0 million per quarter

• EBIT margin (currency-adjusted) >7.5% $\mathbf{y}$

The financial year 2016 by segments

TURNOVER AND EBIT BY SEGMENTS

• Technology $(66%)$ decline in turnover -3.5 % (yoy) by nonprint business (engineering)

• positive segment result proved

• $\angle$ Services (34%) growth of turnover +5.7% (yoy)

• stable segment result (rate of return 16.3 %)

Key figues at a glance

Earning figures $\overline{I}$ (in m illion $\backslash overline\{\backslash epsilon\}$)	Q 1 2015	Q 1 2016	$\Delta$ in $\%$
Turnover	30,580	30,403	$-0.5$
EBITDA	3,064	2,835	$-7.5$
EBIT	2,294	2,060	$-10.2$
EBIT-margin in %	7.5%	6.8%
Net profit for the period *	1,465	1,459	$-0.4$
Net profit per share	0.22	0.22

Balance sheet figures (in million $\epsilon$ )	Q 1 2015	Q 1 2016	$\overline{\Delta}$ in %
Balance sheet capital	76,043	78,382	$+3.1$
Equity	51,725	52,945	$+2.4$
Equity ratio in %	68.0%	67.5%
Net debt	$-11,575$	$-12,878$	$+143.0$
Working Capital	19,978	20,616	$+3.2$

* Profit attributable to technotrans AG shareholders

Cashflow key figures (in million $\epsilon$ )	01 2015	Q 1 2016	$\Delta$ in %
Operational cashflow	3,363	1,537	$-54.3$
CF from investing activities	$-407$	$-168$	$-58.7$
CF from financing activities	$-699$	-666	$-47$
Free Cash Flow	2,956	1,369	$-53.7$

Other key figures	01 2015	(11) 2016	$\Delta$ in %
Employees	786	824

Healthy business progress amid weak $\sum_{i=1}^{n}$ economic environment as expected

Outlook 2016

Overview of technotrans share

• · Freefloat
• technotrans AG (eigene Aktien)
• Ojectif Small Cap
• Midlin NV
• Baring Asset Management Limited
• Hauck & Aufhäuser S.A.

KEY DATA SHARE
ISIN/Code	DE000A0XYA7/A0XGA
establishment/IPO	1970/1998
financial year	$01.01 - 31.12.$
share capital	6,907,665.00
number of shares	6,907,665
number of shares (free float)	6,532,750
stock markets	XETRA, Frankfurt
designated sponsors	Bankhaus Lampe, equinet Bank
index	Prime Standard

market capitalisation: as of May 2, 2016 EUR 125 millionen

Share performance and analyst estimates

• dividend policy: distribution of 50 % of the $\left. \right. \right. \left. \right. \left. \right. \left. \right. \left. \right. \left. \right. \left. \right. \left. \left. \right. \left. \right. \left. \left. \right. \left. \right. \left. \right. \left. \left. \right. \left. \right. \left. \left. \right. \right. \left. \left. \right. \left. \left. \right. \right. \left. \left. \right. \right. \left. \left. \right. \right. \left. \left. \right. \left. \left. \right. \right. \left. \left. \right. \right. \left. \left. \right. \right. \left. \left. \right. \left. \left. \right. \right. \$ consolidated net earnings

• proposed dividend of $\epsilon$ 0.48 per share for 2015

Research
2016-04-29	Bankhaus Lampe buy	Gordon Schönell price target € 20.00
2016-03-09	Warburg Research buy	Eggert Kuls price target € 22.60
2016-02-24	equinet Bank buy	Victoria Kruchevska price target € 21.00
2016-05-03	Hauck + Aufhäuser buy	Nils-Peter Gehrmann price target € 23.00
2016-04-12	HSBC hold	Richard Schramm price target € 21.00

Financial Calendar
2016-05-04	Interim Report (1-3/2016)
2016-08-05	Interim Report (1-6/2016)
2016-11-04	Interim Report (1-9/2016)

Investment Highlights

Why investing in technotrans shares is an attractive proposition:

• You are investing in a successful business model designed for the long term, $\left. \rule{0.3cm}{0.12cm}\right.$ from a German mid-cap business.
• You are investing in a strategy, that targets $\rightarrow$ a steady development in value and healthy profits.
• You are investing in innovation and enterprise-led growth in an international $\rightarrow$ environment.

Management

Henry Brickenkamp

• Chief Executive Officer

• DOB 1968 $\sum$

• Sales director since 2005, Board of Management member since 2006

• $\rightarrow$ Responsible for Products & Markets

Dirk Engel

• Chief Financial Officer

• DOB 1967 $\sum$
• $\rightarrow$ Head of finance and accountancy since 2004, Board of Management member since 2006
• $\rightarrow$ Responsible for Finance & Administration

Dr. Christof Soest

• Chief Technology Officer $\sum_{i=1}^{n}$
• DOB 1964 $\sum$

• Board of Management member since 2011

• Responsible for Technology & Operations

Thank you for your attention!

Member of the technotrans group Zitechnotrans ⊠gds Zitermotek 乙klh

Any forward-looking statements contained in this presentation represent our best judgement as to what will occur in the future. The Company's actual results could differ materially from those presented and will depend on a number of competitive and economic factors, some of which will be outside the control of the company.