technotrans SE

Quarterly Report • May 9, 2023

Key figures of the technotrans Group (IFRS)

		previous year	01/01 31/03/2023	01/01 31/03/2022	2022
Revenue		20.6 %	68,312	56,654	238,218
Technology		24.6 %	52,759	42,336	180,203
Services		8.6 %	15,553	14,318	58,015
EBIT		13.7 %	3,533	3,108	14,329
EBIT margin	%		5.2	5.5	6.0
Net profit for the period1		9.1 %	2,203	2,020	8,900
as percent of revenue	%		3.2	3.6	3.7
ROCE	%		13	11,7	13,3
Earnings per share		9.1 %	0,32	0,29	1,29
Balance sheet total assets		6.1 %	172,686	152,741	162,715
Equity*		2.3 %	93,184	87,061	91,070
Equity ratio	%		54.0	57.0	56.0
Net debt*2		11.6 %	28,959	20,706	25,957
Free cash flow3			-1,678	-4,754	-3,738
Employees (balance sheet date)*		2.4 %	1,536	1,426	1,500

*Change compared to December 31, 2022

Result for the period: Profit attributable to shareholders of technotrans SE Net debt: Interest-bearing financial liabilities including lease liabilities according to IFRS 16 ./. cash and cash equivalents Free cash flow: Net cash from operating activities +

Net cash used for investments according to cash flow statement

Quarterly Communication January 1 March 31, 2023

Strong start to Phase II of Future Ready 2025 strategy: technotrans records double-digit revenue and EBIT rise in Q1 2023

Development of key figures in the first 3 months 2023

(Change compared to previous year in brackets)

Revenue:	68.3	(+ 20.6 %)
EBIT:	3.5	(+ 13.7 %)
EBIT margin:	5.2%	(-0.3 percentage points)
ROCE:	13.0%	(+ 1.3 percentage points)

The technotrans Group has made a strong start to Phase II of its Future Ready 2025 strategy. Consolidated revenue and the consolidated operating result (EBIT) rose by double-digit rates in Q1 2023 despite a still-challenging economic environment. The focus markets remained the main growth drivers. With revenue up by around 96 %, Energy Management reported the highest growth compared with the previous year.

continuing growth trend. The book-to-bill ratio as of the reporting date for the period was 1.0, in a reflection of the high quarterly revenue.

In light of the increased level of orders, technotrans expanded its capacity in Q1 by establishing a new location in Steinhagen. Expenditure on setting up these operations and ongoing material price increases that reflect the conditions on procurement markets led to a temporarily lower EBIT margin of 5.2 % (previous year: 5.5 %), as expected. Compared with the prior-year quarter, free cash flow ‑4.8 million to ‑1.7 million.

The positive development is also reflected in the reporting segments. In the Technology segment, revachieved an 8.6 %.

The Board of Management is satisfied with the business performance in the first quarter of 2023. Provided the economic and geopolitical situation does not deteriorate, it confirms its expectation of on for the 2023 financial year, with an EBIT margin in the range of 6.2 % to 7.2 %. The mid-range forecast for 2025 remains valid.

Presentation of significant events and business performance in the first quarter of 2023

Development of the markets

Intensive demand for technotrans systems and services held up in the first quarter of 2023.

The Plastics focus market posted a year-on-year rise of around 24 % in revenue. The main drivers were applications in the field of technical films and plastic components. Demand for applications for imparting large-area components with high-grade finishes was also up sharply. These are produced using variothermal technotrans systems, for which revenue picked up correspondingly. Demand for ultra-low-temperature applications also rose. technotrans moreover acquired further orders for chillers that use the natural refrigerant propane.

With a rise in revenue of around 96 %, the Energy Management focus market almost doubled its performance compared with the previous year. This positively reflects especially the fact that increasing numbers of projects for rail vehicle battery cooling systems are now going into production. Demand continued to show dynamic growth thanks to high investment in the decarbonisation of rail transport. New business in the area of road transport also accelerated. One prime example is a major contract for charging cable cooling for the European and American market, for use in high-power charging areas (HPC).

The Healthcare & Analytics focus market was able to secure its first production orders for cooling systems for medical technology applications based on the natural refrigerant propane. A filling plant for this technology was installed at the Baden-Baden location in the first quarter. Due to bottlenecks for input materials and a reluctance to invest in analytical applications following the special boom triggered by the coronavirus, revenue volume as a whole mirrored that of the previous year.

Continuing steady demand in the Print focus market, driven by packaging and flexo printing, brought an approximately 13 % rise in revenue compared with the previous year. In this area, technotrans benefits from its long-standing positioning as technology partner to leading printing press manufacturers.

Based on high demand for custom-made and technically sophisticated solutions in the Laser & Machine Tools market, first-quarter revenue was up by some 25 % on the previous year. technotrans has responded to this market demand by setting up a new clean room at Baden-Baden. technotrans is targeting the semiconductor industry in expanding this manufacturing expertise. It has already produced and delivered its first systems for chip manufacturing.

Strategy

With the start of the 2023 financial year, technotrans has launched Phase II of the Future Ready 2025 strategy according to plan. Over the period 2023 to 2025, this will focus on accelerating profitable growth. The aim is to develop the focus markets further, promote the international spread and make targeted investments in innovations and new technologies. To complement organic growth, targeted acquisitions in the focus markets will also be considered. Since the definition of the Future Ready 2025 strategy in 2020, the framework conditions have changed fundamentally. Crucial factors include for example the COVIDengines for passenger cars in 2035. These developments have prompted the Board of Management to revisit the original assumptions behind the strategy and to feed new insights into the further implementation of the strategy.

Sustainability

technotrans made substantial progress with its sustainable commitment in Q1 2023. Company-based activities include the drafting of a new company car policy. This envisages gradually switching the entire vehicle fleet to battery-powered vehicles and installing the necessary charging infrastructure at the locations. The basic parameters for commissioning a photovoltaic system for the Bad Doberan location were also established. A significant production milestone has been reached with the receipt of a major contract for high power charger cable cooling. technotrans is now playing a part in expanding the HPC infrastructure as the basis for the transition to area-wide electric mobility. Megawatt charging systems (MCS) are essential if heavy-goods vehicles are to be equipped to run on battery power with short charging cycles. In presenting an MCS cooling in Korea in March, technotrans positioned itself as an innovative, high-performance international partner. As previously described, technotrans also increased its expertise in natural refrigerants by installing a filling plant for propane at the Baden-Baden location.

Economic environment / procurement markets

In line with our forecast, the economic environment in Q1 2023 remained challenging. Although central banks have put up interest rates and prices for food and energy have come down, price rises and strained supply chains dictated economic developments worldwide. The situation is compounded by the continuing shortage of skilled labour. Rising interest rates mean the cost of financing for businesses has risen, coinciding with a downward trend in the credit supply. The International Monetary Fund (IMF) believes the global economy will grow more slowly than in previous years. Inflation is expected to ease somewhat but only in the long term. The risks for the economy are substantial and could be aggravated by financial crises, geopolitical tension, continuing high inflation and debt crises. Market participants are unsettled. There has been a moderate improvement in certain sub-areas of the procurement market but the overall situation remains tight.

Overall statement by the Board of Management on the business performance

ing. Despite these demanding circumstances, technotrans has continued to step up its growth and achieved a substantial year-on-year increase in both consolidated revenue and the consolidated operating result (EBIT).

This development confirms the successful start of Phase II of the Future Ready 2025 strategy, which focuses on accelerating growth. The positive business performance is the result of a clear sales emphasis on focus markets, which for the most part demonstrated the anticipated dynamism in Q1. Meanwhile technotrans has reaped the rewards of diversification, enabling it to more than compensate for moderate developments in individual focus markets. The economic environment remained challenging: shortages of materials, long lead times and price increases continued to dominate business operations at the start of the year. technotrans nevertheless implemented the Future Ready 2025 strategy consistently and for example invested in growth by setting up a new plant in Steinhagen.

Considering the continuing challenging environment, the Board of Management is satisfied with the business p

	01/01 31/03/2023	01/01 31/03/2022	Change from previous year
Revenue	68.3	56.7	20.6 %
Cost of sales	-50.4	-40.4	24.6 %
Gross profit	17.9	16.3	10.4 %
Distribution costs	-7.0	-6.3	10.7 %
Administrative expenses	-5.6	-5.2	8.9 %
Other income/expenses	-1.8	-1.7	5.4 %
EBIT	3.5	3.1	13.7 %
Net profit for the period*	2.2	2.0	9.1 %
	0.32	0.29	9.1 %

* Profit attributable to shareholders of technotrans

Development in revenue

, Healthcare & Analytics and Print focus markets brought in 71.0 % of consolidated revenue.

Results of operations

There was substantial pressure on the market environment in the first quarter of 2023 due to difficult geopolitical conditions and the continuing upheaval on procurement markets. Despite these challenges, revenue, the consolidated operating result (EBIT) and the return on capital employed (ROCE) improved year on year in the first three months of this year.

Gross profit rose by 10.4 % compared with the prior-year period to 17.9 million (previous year: 16.3 million). Due to the time lag between price increases for materials and selling price rises, the increased use of temporary personnel for a limited period as well as the start-up and training costs involved in setting up a new production location in Steinhagen, the gross margin declined to 26.2 % (previous year: 28.7 %). EBITDA increased by 8.3 % to 5.2 million.

Despite the very tight market environment, the consolidated operating result (EBIT) was increased to predominantly temporary in nature, meant the EBIT margin for the first quarter fell slightly to 5.2 percent, as expected (previous year: 5.5 percent). ROCE increased to 13.0 % (previous year: 11.7 %).

The positive profit performance is also reflected in the results for the segments, which are shown in the following table. Revenue, EBIT and EBIT margin for the Technology segment were well up on the previous year. The Services segment equally achieved significant revenue growth, with EBIT on a par with the previous year. The EBIT margin for the Services segment is two percentage points down on the equivalent quarter of the previous year. The development can nevertheless be considered positive. T EBIT margin of 12.0 % for 2022 as a whole.

The consolidated result after tax for the threemillion).

		Technology			Services		technotrans Group
		3M 2023	3M 2022	3M 2023	3M 2022	3M 2023	3M 2022
Revenue		52.8	42.4	15.5	14.3	68.3	56.7
EBIT		1.5	1.0	2.0	2.1	3.5	3.1
EBIT margin	%	2.9	2.3	12.8	14.8	5.2	5.5

Performance indicators by segment

Net assets

-led increase compared with the 2022 end-of- taken proactively to maintain the availability of materials, along with price rises for input materials, led to an inwas attributable to increased business activity especially in March. The buildup in working capital and Increased business activity also led to higher trade payables and advances received. Equity at the mained at a very solid level.

Assets 31/03/2023 31/12/2022

Fixed assets	68.2	67.6
Inventories	55.2	50.2
Trade receivables	32.3	27.4
Cash	10.5	12.5
Other assets	6.5	5.0
Total	172.7	162.7

Equity and Liabilities	31/03/2023	31/12/2022
Equity	93.2	91.1
Borrowings	39.5	38.4
Employee benefits	6.5	6.8
Provisions	3.8	3.4
Trade payables	10.9	7.4
Payments received	7.9	6.8
Other liabilities	10.9	8.9
Total	172.7	162.7

Financial position

The positive development in business in the period under review was reflected in the consistently 3 million). The strategic buildup of inventories to address procurement market risks proactively and the high trade receivables at the reporting date, offset only partly by borrowings raised and advances received, led to a change in net cash from operating - -4.0 million). The -1.0 million was at a comparatively low level. The free cash -1.7 million.

Scheduled repayments of borrowings million were raised in the period under review. Taking into account the repayment of lease liabilities -0.2 million (pre - 2.6 million).

Cash flow (in m

	01/01 31/03/2023	01/01 31/03/2022
Cash flow from operating activities	5.0	5.3
Net cash flow from operating activities	-0.7	-4.0
Cash flow from investing activities	-1.0	-0.8
Free cash flow	-1.7	-4.8
Cash flow from financing activities	-0.2	-2.6

Report on post-balance sheet date events and risks report

No events with a particular impact on the net assets, financial position and results of operations of the technotrans Group occurred after March 31, 2023.

The relevant opportunities and risks for the future development of the technotrans Group and the risk management system implemented were presented in detail in the 2022 Annual Report.

The opportunity and risk situation of the Group has not changed since the position set out in the Annual Report dated December 31, 2022.

Outlook

Expected economic environment

Despite the steady level of orders, it is clear that market participants remain unsettled. The upheaval on procurement markets, difficulties with the supply of materials, capacity bottlenecks as well as high inflation rates are impacting the performance of businesses in the mechanical and plant engineering sector. In its World Economic Outlook dated April 2023, the IMF forecasts a for the year 2023. This estimate is 0.2 percentage points lower than as recently as January this year. In contrast to the IMF forecast, the German government increased its forecast by 0.2 percentage points on April 26, 2023 and expects GDP growth of 0.4 % for 2023. The IMF forecasts GDP growth of 0.8 % for the eurozone (January 2023: 0.7 %).

Expected business development of the Group

The forecast published in the 2022 Annual Report on March 16, 2022, which assumes that the expected revenue and EBIT growth will materialise especially in the second half of the year, remains valid.

The same applies to the overall statement on the future business performance in 2023, on which the following statements are based:

In view of the development in Q1 2023 and based on the continuing solid level of orders, the Board of Management expects the technotrans Group to maintain its profitable growth in the 2023 financial year.

There is continuing uncertainty with regard to the economic environment for the year as a whole. The corrective action taken to improve profitability is gradually taking effect. As expected, the first half remains dominated by expenditure in connection with the commissioning of the Steinhagen location and by materials-side price rises. Matters are not expected to improve noticeably before the second half of 2023 at the earliest, once the compensatory measures start to bite properly.

technotrans remains resolutely on a course of improving stability and profitability that it chose in Phase I of the Future Ready 2025 strategy and in Phase II is now pursuing further profitable growth based on targeted investments. The Board of Management reasserts its expectation for the 2023 fibetween 6.2 % and 7.2 % and ROCE of between 13.5 % and 14.5 %. This forecast is subject to no new strains from the general geopolitical and economic environment.

The medium-term targets for the 2025 financial year of revenue between and an EBIT margin of 9.0 % to 12.0 % and ROCE in excess of 15 % remain valid. These figures do not include potential acquisitions.

Consolidated Balance Sheet

Assets

31/03/2023	31/12/2022
35,945	35,670
4,640	3,925
23,513	23,513
4,101	4,531
214	215
741	741
69,154	68,595
55,246	50,203
32,334	27,394
507	565
1,185	967
3,722	2,546
10,538	12,445
103,532	94,120
172,686	162,715

Equity and Liabilities

	31/03/2023	31/12/2022
Equity
Issued capital	6,908	6,908
Capital reserve	19,097	19,097
Retained earnings	70,394	61,494
Other reserves	-5,418	-5,329
Net profit for the period	2,203	8,900
Total equity attributable to technotrans SE shareholders	93,184	91,070
Non-controlling interests in equity	0	0
	93,184	91,070
Non-current liabilities
Borrowings	17,934	18,908
Employee benefits	1,137	1,058
Other financial liabilities	2,830	2,350
Deferred taxes	776	821
	22,677	23,137
Current liabilities
Borrowings	16,857	15,492
Trade payables	10,896	7,363
Prepayments received	7,880	6,820
Employee benefits	5,391	5,730
Provisions	3,797	3,394
Income tax payable	4,856	4,359
Other financial liabilities	3,527	3,267
Other liabilities	3,621	2,083
	56,825	48,508
Total equity and liabilities	172,686	162,715

Consolidated Income Statement

	01/01/ - 31/03/2023	01/01/ - 31/03/2022
Revenue	68,312	56,654
of which Technology	52,759	42,336
of which Services	15,553	14,318
Cost of Sales	-50,372	-40,407
Gross profit	17,940	16,247
Distribution costs	-7,018	-6,344
Administrative expenses	-5,639	-5,182
Development costs	-1,362	-1,318
Income/expenses from impairment losses on financial assets and contract assets	-193	-107
Other operating income	320	450
Other operating expenses	-515	-637
Earnings before interest and taxes (EBIT)	3,533	3,108
Financial income	2	0
Financial expenses	-319	-223
Financial result	-317	-223
Profit before tax	3,216	2,885
Income tax expense	-1,013	-865
Net profit for the period	2,203	2,020
of which:
Profit attributable to technotrans SE shareholders	2,203	2,020
Profit attributable to non-controlling interests	0	0
basic / diluted	0.32	0.29
Overall result for the financial year	2,303	2,285

Condensed Consolidated Cash Flow Statement

	01/01/ - 31/03/2023	01/01/ - 31/03/2022
Cash flow from operating activities
Net profit for the period	2,203	2,020
Adjustments for:
Depreciation and amortisation	1,720	1,686
Other	1,092	1,580
Cash flow from operating activities before working capital changes	5,015	5,286
Change in:
Inventories	-5,043	-6,847
Receivables and other current assets	-6,333	-6,456
Liabilities and prepayments	6,169	4,014
Provisions and employee benefits	143	671
Cash from operating activities	-49	-3,332
Other	-684	-708
Net cash from operating activities	-733	-4,040
Cash flow from investing activities
Cash payments for investments in property, plant and equip ment and in intangible assets	-1,028	-796
Proceeds from the sale of property, plant and equipment	83	82
Net cash used for investing activities	-945	-714

	01/01/ - 31/03/2023	01/01/ - 31/03/2022
Cash flow from financing activities
Cash receipts from the raising of short-term and long-term loans	2,000	0
Cash payments from the repayment of loans	-1,608	-2,102
Distribution to investors	0	0
Other	-586	-489
Net cash used in financing activities	-194	-2,591
Change in cash and cash equivalents	-1,872	-7,345
Cash and cash equivalents at start of period	12,445	18,651
Net effect of currency translation in cash and cash equivalents	-35	-33
Cash and cash equivalents at end of period	10,538	11,273

Information for shareholders

We provide below an overview of the key developments concerning technotrans shares in the period under review. Further information about technotrans SE and its shares can be found on our website https://www.technotrans.com.

Performance indicators for technotrans shares

	01/01 - 31/03/2023	01/01 - 31/03/2022	2022
Trading price (XETRA closing price)
High	28.00	28.50	29.50
Low	25.00	24.50	21.55
Reporting Date	28.00	25.55	25.45
Market Capitalisation Reporting Date	193.4	176.5	175.8
Net profit per share	0.32	0.27	1.29

Performance of technotrans shares (XETRA)

Sentiment on capital markets worldwide generally showed an uptick in Q1 2023. Market activity was nevertheless still dominated by high uncertainty about the future economic environment. The SDAX rose by 10 % and the DAXsector Technology climbed 30 %.

There was increased interest in technotrans shares in the period under review. This was evidenced by a rise in the number of shareholders and growth in Xetra daily trades. The trading price appreciated by 10 %.

Analyst assessments as of March 31, 2023:

	Recommenda
Institution	tion	Price target
Hauck & Aufhäuser	buy
Kepler Cheuvreux	buy
LBBW	buy
Warburg Research	hold

Investor Relations work

A large number of talks were held with existing and prospective investors in the first quarter of 2023. The highlights included the ODDO Digital Forum and the roadshow with Warburg Research in Frankfurt. On March 16, 2023 the Board of Management presented the figures for the 2022 financial year in a webcast and an interview with Börsenradio. The Board of Management and IR team were also available for individual events at a variety of locations.

Michael Finger (CEO) purchased 1,850 technotrans shares in the period under review. Peter Hirsch (CTO/COO) acquired 1,700 shares. Robin Schaede purchased 150 shares.

For details on reportable transactions, please visit:

https://www.technotrans.com/investor-relations/investor-news/directors-dealings.

Composition of shareholders

We received and published the following voting rights notifications pursuant to Sections 33 and 34 of the German Securities Trading Act (WpHG) in the first quarter of 2023 and up until the deadline for this Quarterly Communication. The current shareholder structure is as follows:

Date threshold contact	Notifying Party	Notification	Voting Rights
05/04/2023	Stichting Administratiekantoor Monolith	falling below 3 %	1.40 %
05/04/2023	Teslin Capital Management B.V.	exceeding 15 %	15.12 %
09/01/2023	Universal Investment GmbH	falling below 3 %	2.70 %

Financial Calendar/notes

Publication	Date
Interim Financial Report 2023	August 8, 2023
Quarterly communication 1-9/2023	November 7, 2023
Events
Annual General Meeting 2022	May 12, 2023
SdK Investor Forum 2023 - virtual	June 1, 2023
Warburg Highlights - Hamburg	June 15, 2023
HIT - Hamburg Investors Day	August 24, 2023
Berenberg & Goldman Sachs Conference - Munich	September 20, 2023
German Equity Forum - Frankfurt	November 27 - 29, 2023
CIC Forum - virtual	December 1, 2023

Current information on events can be found on our website at : https://www.technotrans.com/investor-relations/financial-calendar

NOTES

This Quarterly Communication 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.

This Quarterly Communication Version in English language is a translation provided for information purposes only. The original German text shall prevail in the event of any discrepancies between the English translation and the German original. We do not accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may arise from the translation.

Rounding differences may occur.

The Quarterly Communication of technotrans SE as of March 31, 2023 has been prepared in accordance with Section 53 of the stock exchange rules for the Frankfurt Stock Exchange (FSE).

Contact

Frank Dernesch

Manager Investor Relations & Corporate Finance

Phone: +49 (0)2583-301-1868 Fax: +49 (0)2583-301-1054 E-Mail: investor-relations@technotrans.de

General enquiries

technotrans SE

Robert-Linnemann-Straße 17 48336 Sassenberg

Phone: +49 (0)2583-301-1000 Fax: +49 (0)2583-301-1054 E-Mail: info@technotrans.de