technotrans SE

Investor Presentation • Nov 7, 2023

Webcast 9 months 2023

power to transform strategy into results

November 7, 2023

1 technotrans | November 7, 2023 - Webcast Q3 2023

Business Performance

Development markets

Economic development

Strategy Review

Outlook

Contact/Disclaimer

technotrans | 2 November 7, 2023 - Webcast Q3 2023

Strong sales growth

Continued high demand for thermal management systems:

• − Group revenue up on the previous year in all quarters
• − Growth drivers: focus markets Plastics, Energy Management, Print and Laser & Machine Tools market
• − Energy Management shows the highest momentum at +87 % Order situation develops as expected:
• − Order backlog successfully reduced to
• − Book-to-bill ratio unchanged at 0.9
• − First signs of a weakening economy recognizable

EBIT increases significantly in the 3rd quarter

EBIT (m | EBIT margin (%) Temporary burdens on earnings in the 3rd quarter of 2023 significantly reduced

• − Order backlogs reduced: Use of temporary workers reduced
• − Price increases to customers take effect
• − Strategy review completed
• − Call-ups in the Healthcare & Analytics area have been increasing again since August
• − Construction of Steinhagen site completed

Ongoing EBIT burdens

• − Material costs remain at a high level
• − China location falls short of expectations
• − Change in product mix due to economic conditions

Plastics

5 technotrans | November 7, 2023 - Webcast Q3 2023

Energy Management

Healthcare & Analytics

7 technotrans | November 7, 2023 - Webcast Q3 2023

Print

8 technotrans | November 7, 2023 - Webcast Q3 2023

Revenue and Earnings development

EBIT (m margin (%) 2022/2023

• Revenue up on the previous year in all quarters.

• Growth drivers: focus markets Plastics, Energy Management, Print and the Laser & Machine Tools market.

• Price increases in HY2 fully effective.

• Non-recurring charges from HY1 decreased significantly in the 3rd quarter.
• EBIT margin in Q3-2023 significantly improved compared to previous quarters

Significant KPIs

Earnings performance

Segment Technology

Revenue (m

EBIT (m margin (%) 2022/2023

• − Segment revenue in the reporting period increased by 14.3 % compared to the previous year.
• The main growth drivers are the focus markets of Energy Management, Print, Plastics and the Laser & Machine Tools market.

− Segment EBIT decreases moderately to (previous year:

2022 2023

− EBIT margin of 2.7 % (previous year: 3.4 %) particularly impacted by one-off charges from HY1; significant margin improvement compared to Q2-2023 due to cost management and price increases.

technotrans | 12 November 7, 2023 - Webcast Q3 2023

Segment Services

Revenue (m

• − Segment revenue increase by 7.9 % to (previous year:

• − Key growth drivers are spare parts and installations in all markets.

• − Segment EBIT of EBIT margin at 12.6 % (previous year 13.6 %).

• − Increased material prices and high costs for external companies, particularly in HY1, are preventing better development.
• Price increases show effect in Q3.

Net assets and financial position

Measures to improve profitability and cashflow initiated

Working Capital Continued optimization

technotrans | 15 November 7, 2023 - Webcast Q3 2023

Future Ready 2025

2021 2022 Phase I: Stability & Profitability

• − Continuation of the initiated change process based on existing core competencies
• − Concentration on focus markets
• − Establishment of a market-oriented organizational structure
• − Expansion sustainability
• − Consolidation through use of group-wide synergy effects, expansion of shared services ✓ ✓ ✓
• − Merger of individual group companies
• − Strengthening technotrans as one brand

2023 2025 Phase II: Profitable Growth & Investment

Accelerated growth based on:

• Findings from Phase I
• − Consistent concentration on focus markets (domestic and international markets)
• − International business expansion
• − Innovative product and Processes development
• − Use of new technologies
• − M & A

✓

✓

✓

✓

Strategy Review: General direction and objectives confirmed

External challenges Strategy Review 2023

Covid-19

War in Ukraine and Israel

Inflation

China economy slow down

Supply chain instability

Softer market growth

Thermal Management supported by mega trends

Organic growth and margin potential realistic Focus on modularity and scale effects

Regional focus on Europe and North America

Streamlining Portfolio | Divestments

M&A to accelerate growth in markets and regions

Laser becomes focus market

technotrans | 18 November 7, 2023 - Webcast Q3 2023

Identified challenges are being adressed

Profitability

NWC | Cashflow

Operations | Efficiency

Chinese business declining

Supply chain | Material costs

• Strong focus on EBIT & Cashflow improvement
• Cost efficiency program | Operations
• Portfolio Management | Divestment
  • Adjust Chinese business | location
• Strengthen global procurement

Strategic & operational change initiated, now focus on implementation & execution

Identified challenges are being adressed

Guidance for 2023 and 2025 confirmed

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

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.