ELEVATING CHAMPIONS

Earnings Call - H1 2020 | 29 September 2020

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Summary H1 2020

Group KPIs

Revenue growth of +1% (compared to pro forma H1 2019)
- o Below long-term target growth due to COVID-19
- o However significantly better than expected (guidance from 29 June: "high single digit percentage decline")
Gross profit at 73.7% of total output (slightly up 2.0%-points)
Adj. EBITDA margin 20.4% (down 8.7%-points)
- o Negative cut-off date effects from change in finished goods and work in progress compared to H1 2019
- o Already in 2019, structures were ramped-up for double digit top line growth
- o Leveraging flexibility in operating cost base
- o But avoiding measures that would endanger the Group's future growth prospects

Deal flow

Strong deal pipeline and due diligence activity in H1 despite COVID-19 pandemic and IPO preparations
- o >2,200 companies actively screened and 195 opportunities introduced by M&A advisors and network
- o 15 management presentations (both virtually and physically)
- o Currently 3 companies in due diligence from the Healthcare, MedTech and Software spaces

Revenue 2020 by quarter

Revenue H1 2020 by region

KPIs by segment

	Environmental Technologies		Security Technologies		Central Functions		Total
€ thousand	H1 2020	H1 2019	H1 2020	H1 2019	H1 2020	H1 2019	H1 2020	H1 2019
Revenue	5,956	5,717	17,203	17,296	-	-	23,160	23,013
Revenue growth	4.2%		(0.5%)				0.6%
Gross profit	4,676	4,749	12,469	12,935	-	-	17,144	17,684
Gross margin	78.5%	83.1%	72.5%	74.8%			74.0%	76.8%
Adjusted EBITDA	1,605	2,055	5,300	5,945	(2,189)	(1,294)	4,716	6,706
Adjusted EBITDA margin	26.9%	35.9%	30.8%	34.4%			20.4%	29.1%

Reportable segments

Palas

Test rigs for face masks successfully developed, launched and marketed
Patent filed for the measurement of virus-sized particles in exhaled air – product launch imminent
Successful market entry in Asia
- o Hong Kong and Shanghai subsidiaries founded
- o MD Asia with local sales team up and running
- o First order intake

€ thousand	H1 2020	H1 2019
Revenue	5,956	5,717
Revenue growth	4.2%
Gross profit	4,676	4,749
Gross margin	78.5%	83.1%
Adjusted EBITDA	1,605	2,055
Adjusted EBITDA margin	26.9%	35.9%

Statutory travel and contact restrictions as well as customers' internal "no-contact policies" hamper on-site work for KVM system installations which is crucial to put the systems into operation
- o Consequently, delayed conversion of pipeline into order intake, especially for larger projects
- o Cautious optimism observable on customer side, but uncertainties remain
Development of an IP module to remotely access KVM installations, while maintaining their systematic security
New security certifications ongoing:
- o US: NIAP (National Information Assurance Partnership)
- o International: Common Criteria for Information Technology Security Evaluation
- o Germany: KRITIS (critical infrastructure in accordance with the Federal Offices for Civil Protection, Disaster Assistance and Information Security)