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INDUS Holding AG

Quarterly Report Jun 2, 2014

220_10-q_2014-06-02_8c6c3241-f524-44aa-a1d5-46bedef7a68a.pdf

Quarterly Report

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Q1 | 2014

interim report – q1 2014 Letter to the Shareholders

1

2014 is off to a Strong Start

PROFILE

INDUS is the leading specialist in the field of sustainable investment and growth in German small and medium-sized companies. Our shareholders participate in the profitability of our diversified and still growing portfolio of hidden champions.

key figures (in EUR millions)

Q1 2014 Q1 2013
Sales 287.2 262.5
EBITDA 39.2 34.3
EBIT 28.3 24.5
Net result for the period 13.3 12.4
Earnings per share (in EUR) of continuing operations 0.60 0.57
Operating cash flow -9.8 -14.3
Cash and cash equivalents (as of the reporting date) 109.6 107.5
Total assets 1,215.6 1,180.9
Equity capital 526.9 515.3
Net debt 333.0 307.6
Equity ratio (in %) 43.3 43.6
Employees (as of the reporting date) 7,381 7,037
Investments (as of the reporting date) 40 39

Construction/Infrastructure Sales +7 % EBIT +30 % Automotive Technology Sales +3 % EBIT -17 % Engineering Sales +24 % EBIT +19 % Medical Engineering/Life Science Sales +1 % EBIT +24 % Metals Technology Sales +15 % EBIT +26 % group sales group ebit 9% 16%

contents
1
2
4
5
Letter to the Shareholders
SMEs are Shaping the Future
INDUS on the Capital Market
Interim Management Report
15 Consolidated Interim Financial
Statements as of March 31, 2014

33 Contact and Financial Calendar

segment trend in q1 in comparison to q1/2013 (in %)

Dear Shareholders,

INDUS is off to a strong start in the new fiscal year. For the current year we set ourselves the goal of achieving renewed growth. Now that we are more than three months into fiscal year 2014, we are confident of achieving this goal. The first quarter went better than expected, and the companies in the Construction and Medical Engineering segments in particular have had a very strong start. The lack of a winter hiatus, in particular, had a positive effect on construction projects. This development will normalize in the course of the first half-year, so that, for the year as a whole, we expect business performance to be strong within the range of expectations.

INDUS's plans for 2014 continue to call for organic growth in sales of up to 3%, to which acquisitions are expected to add further growth. Our first acquisition this year has already taken us one milestone closer to this target. Our acquisition of ROLKO brings to fruition our plans to strengthen our position in the Medical Engineering/Life Science segment. We hope to bring another attractive small or medium-sized company into our Group before the current fiscal year is out. At the same time, we decided at the beginning of the year to part ways with one portfolio company. The prognosis for the continuation of our long-time portfolio company NISTERHAMMER as a going concern was decidedly negative after an intensive phase of restructuring. Our Board of Management therefore decided to shut down its operations. In the Construction segment, furthermore, we will be forming another subsidiary by splitting ANCOTECH off from BETOMAX. A Swiss company, ANCOTECH develops special reinforcements and has undergone extremely dynamic development in recent years. The company is now serving markets other than those served by its parent BETOMAX. We established the company as an independent entity in acknowledgment of this development and with the intention of assisting it more effectively in its pursuit of growth.

These decisions are in line with our strategy for more vigorous development of our portfolio. As set out in our COMPASS 2020 strategy program, we want not only to achieve growth through strategic acquisitions, but also to develop and optimize our existing portfolio. This development process is already off to a good start, and the INDUS portfolio is proving to be stronger than ever.

Our current forecast for sales and earnings is based on the plans of our existing subsidiaries and deliberately leaves potential acquisitions out of consideration. In 2014 INDUS aims to generate considerably more than EUR 1.2 billion in sales and achieve an EBIT of approximately EUR 118 million.

Bergisch Gladbach, May 2014

Yours, The Board of Management

Jürgen Abromeit Dr. Johannes Schmidt Rudolf Weichert

SMEs are Shaping the Future: Medical Engineering/Life Science

People are living healthier, more comfortable, and longer lives. This is in part thanks to small and medium-sized companies whose expertise is allowing people to enjoy an ever improving quality of life. INDUS is pursuing a portfolio strategy that envisions a more prominent future role for companies in the Medical Engineering/Life Science industry, as this is an industry with great potential.

MEDICAL ENGINEERING: A DEMANDING BUT HIGHLY ATTRACTIVE MARKETT

German medical engineering is making a major contribution to patient care in Germany and across the world. Though small, this is a highly innovative and vigorously growing branch of industry. Apart from a few large corporations that dominate the market in the category of large medical devices in particular, some 1,200 small and medium-sized companies make up the industry's backbone. With their 117,000 employees, German medical engineering companies generate more than EUR 22 billion in annual sales. Each medical engineering job ensures the existence of a job in another segment at a ratio of 1 to 0.75.

In 2012 German medical engineering companies exported their products at a rate of approximately 68%. Domestic suppliers are therefore extremely well positioned as compared to suppliers in other countries; in many areas they are even world leaders. The economic success of German medical engineering companies is built on their many innovative products. These companies generate roughly one third of their sales with products that are less than three years old.

The companies in this industry operate in an extremely dynamic environment, one that is characterized by growing interdisciplinarity, increasingly complex research and development processes, and challenging regulatory requirements. These conditions, along with the accumulated experience of companies already in the market, present new competitors with a formidable barrier to market entry.

world market for medical engineering in 2012 (in Euro billion)

Sources: www.bmbf.de, www.pharmazeutische-zeitung.de, www.bvmed.de

STRENGTHENING THE MEDICAL ENGINEERING/LIFE SCIENCE SEGMENT: INDUS ACQUIRES A LEADING SPECIALIST IN REHABILITATIVE MEDICAL ACCESSORIES

Since mid-April 2014, INDUS has occupied a more prominent position in Medical Engineering – a market with a very promising future – and holds 75% of the shares in the medium-sized ROLKO Group. The company, which is based in Borgholzhausen (near Halle in Westphalia), is already internationally positioned with sales offices in Silkeborg (Denmark) and Houten (the Netherlands). Added to this is a strong business base in Asia. With its approximately 100 employees, ROLKO China has been producing in Xiamen (Fujian province) since as early as 2006 and also supplies major customers locally in China's rehabilitative care market.

Joint shareholder and managing director Achim Kohlgrüber will continue to promote the company's development. His vision is to position ROLKO as a strong brand in the retail medical supplies trade as well as with original equipment manufacturers (OMEs). Thanks to its strong logistics capabilities, ROLKO is already making "just in time" deliveries of some 13,000 parts.

In 2013, ROLKO generated roughly EUR 20 million in sales with more than 150 employees. It sales activities are focused largely on Germany and neighboring countries. Elsewhere in the world the company supplies customers in more than 40 countries. Its products include casters and wheels for wheelchairs and wheeled walkers along with accessories such as wheelchair ramps, body warmers, height-adjustable push handles, and headrests. ROLKO continues to sell medically-related products such as handles and bumper wheels for hospital beds.

By acquiring the ROLKO Group, INDUS has gained entry to the interesting rehabilitative medical accessories market. According to a market study commissioned by INDUS, the global wheelchair market has reached a volume of more than EUR 2 billion and is growing by more than 9% a year. This means that by 2018, the market will have nearly doubled in comparison to reference year 2011.

ROLKO Kohlgrüber GmbH, Borgholzhausen

Among the world's top five suppliers of accessories and industrial goods in the field of rehabilitative medicine

Sales in 2013 in EUR million 21.6
Employees 153
Established 1990
Company headquarters Borgholzhausen, North Rhine-Westphalia
Foreign locations The Netherlands, Denmark, China
Transition Existing shareholder ensures continuity
and further development

www.rolko.info

INDUS on the Capital Market

overview of the indus share *

1st quarter, 2014 2013 as a whole
Peak price in EUR 32.04 29.47
Lowest price in EUR 28.51 20.55
Closing price (at reporting date) in EUR 31.97 29.20
Average daily trading volume (number of shares) 44,719 35,488
Number of shares outstanding 24,450,509 22,410,431
Market capitalization in EUR millions 781.7 655.6

* Share price acc. to XETRA, sales acc. to Deutsche Börse

Consistently Strong Share Price Performance

In the first three months, the INDUS share considerably outperformed both the SDAX and the DAX. The positive outlook in the 2013 annual report in mid-March along with the announcement in early April of the acquisition of ROLKO, a specialist in rehabilitative medical accessories, stimulated persistently strong demand on the capital market. Sales of the shares have increased significantly. The price has risen continuously despite the capital increase in December 2013. As of March 30, 2014, the share was up by around 10%, a much better performance over the closing price at the end of 2013 (SDAX +6%, DAX +0%). This positive trend continued on into April and May of this year. This excellent performance resulted in an absolute 10-year high with market prices in excess of EUR 34 in early May. Currently, analysts' market price estimates range from EUR 32 to EUR 40 and without exception come with a recommendation to buy the stock. On its homepage, under "Investors & Press", INDUS regularly publishes the current estimates of the research institutes that follow INDUS.

interim management report

  • 6 The INDUS Group's Business Performance in the First Three Months of 2014
  • 8 Segment Report
  • 11 Employees
  • 12 Financial Position
  • 14 Opportunities and Risks
  • 14 Events after the Reporting Date
  • 14 Outlook

The INDUS Group's Business Performance in the First Three Months of 2014

Following a quieter fourth quarter in 2013, the business situation at the start of 2014 took a thoroughly positive turn. The first quarter of 2014 saw a marked increase in sales, which came in at EUR 287.2 million, an increase of roughly 9% over the same period last year, partly as a result of the acquisitions made in the previous year. Operating earnings (EBIT), at EUR 28.3 million, likewise came in higher than in the first quarter of 2013 (by roughly 16%). Both the costs of materials ratio and the personnel costs ratio remained nearly constant in relation to sales. The EBIT margin improved to 9.8% (previous year: 9.3%).

Q1 2014 Q1 2013*
Sales 287.2 262.5
Other operating income 4.1 4.1
Own work capitalized 0.6 0.5
Changes in inventories 15.1 8.7
Overall performance 307.0 275.8
Cost of materials -144.5 -131.1
Personnel expenses -84.1 -75.4
Other operating expenses -39.4 -35.0
Income from shares accounted for using the equity method 0.2 0
EBITDA 39.2 34.3
Depreciation and amortization -10.9 -9.8
Operating result (EBIT) 28.3 24.5
Net interest -5.0 -4.6
Earnings before taxes (EBT) 23.3 19.9
Taxes -8.5 -7.1
Earnings attributable to discontinued operations -1.5 -0.4
Earnings after taxes 13.3 12.4
of which allocable to non-controlling shareholders 0.2 0.1
of which allocable to INDUS shareholders 13.1 12.3

consolidated statement of income (in EUR millions)

* Previous year figures adjusted

Earnings: Group Starts Year According to Plan

The increase in Group sales is first and foremost the result of the full consolidation of the new acquisitions dating from the previous fiscal year. Absolute consolidated sales of INDUS Holding AG came to EUR 287.2 million at the end of March (previous year: EUR 262.5 million). The cost of materials rose from EUR 131.1 million to EUR 144.5 million in nearly direct proportion to the increase in sales. The cost of materials ratio reached 50.3% (previous year: 49.9%). Absolute personnel costs also rose from EUR 75.4 million to EUR 84.1 million, primarily as a result of the larger workforce brought about by the acquisitions. The slightly increased personnel cost ratio of 29.3% (previous year: 28.7%) in the first three months of the year corresponds to the average typical for INDUS.

EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at EUR 39.2 million, around EUR 4.9 million more than the previous year's figure of EUR 34.3 million. Depreciation and amortization increased in total to EUR 10.9 million (previous year: EUR 9.8 million).

As forecast, operating earnings (EBIT) as of March 31, 2014, which came in at EUR 28.3 million, exceeded the previous year's level. The EBIT margin for the first three months was 9.8% (previous year: 9.3%). Detailed notes on the earnings position can be found in the segment report.

Net interest remained stable at EUR -5.0 million (previous year: EUR -4.6 million). Earnings before taxes (EBT) improved after the first three months to EUR 23.3 million (previous year: EUR 19.9 million). Tax expenditure increased along with earnings to EUR -8.5 million (previous year: EUR 7.1 million). This corresponds to a tax rate of 36.4% (previous year: 35.6%).

Earnings after taxes declined more steeply as earnings of EUR -1.5 million from discontinued operations were recognized following the decision to shut down operations at portfolio company NISTERHAMMER. Once the minority shares have been deducted, the net result for the period is EUR 13.1 million (previous year: EUR 12.3 million). This corresponds to earnings per share from continued operations of EUR 0.60 (previous year: EUR 0.57).

COMPASS 2020: INDUS Acquires Company in the Healthcare Target Segment

As part of its COMPASS 2020 growth strategy, INDUS has defined core strategic areas in which the Group intends to pursue more vigorous growth. One of these core areas is medical engineering and the healthcare industry. With its purchase of 75% of the shares in the ROLKO Group, Borgholzhausen, INDUS has entered the interesting market for rehabilitative medical accessories. Further details of the acquisition can be found under Events after the Reporting Date.

  • Sales of EUR 287.2 million > EBIT of EUR 28.3 million

  • EBIT margin at 9.8%

Segment Report

The INDUS Holding AG investment portfolio is organized into five segments: Construction/Infrastructure, Automotive Technology, Engineering, Medical Engineering/Life Science, and Metals Technology. The investment portfolio encompassed 40 operating units as of March 31, 2014.

indus construction/infrastructure segment

The Construction Boom Continues Apace

At EUR 49.1 million, sales in this segment in the first quarter of 2014 were, as expected, higher than the EUR 46.1 million level reported in 2013. The portfolio companies were able to maintain production at a constant level thanks to the mild winter. The result was an above-average rise in earnings in comparison to the same quarter last year. INDUS therefore expects, however, no additional catching-up effects in the further course of the spring. Domestic demand for construction can be relied on to continue stimulating this segment. This trend was already noticeable in 2013 in a rise in the number of building permits. Operating earnings before interest and taxes (EBIT), at EUR 4.6 million (previous year: EUR 3.5 million) considerably exceeded the previous year's level, so that there was a substantial increase in the EBIT margin: at 9.4%, it was well above average for a first quarter in the construction segment, when activity is usually very weak.

key figures – construction/infrastructure (in EUR millions)

Q1 2014 Q1 2013
External sales with external third parties 49.1 46.1
EBITDA 5.9 4.8
Depreciation and amortization -1.3 -1.3
EBIT 4.6 3.5
EBIT margin in% 9.4 7.6
Capital expenditure 2.9 2.6
Employees 1,093 1,057

indus automotive technology segment

Slackening Demand in One Area

Sales in the Automotive Technology segment once again rose slightly in a year-on-year comparison. Business activity in the automotive industry remains stable worldwide. Orders for deliveries slackened at the start of the year for only one company in the close-to-production segment. The products primarily affected were components for economy and medium-class vehicles. Consequently, operating earnings declined slightly in comparison to the previous year. The same quarter last year was positively affected by currency gains that no longer apply. INDUS expected to see this development in parts. The first quarter of 2013, moreover, saw particularly strong performance. The companies in this segment generated total

Sales +6.5% EBIT margin 9.4 %

  • Sales above previous year's level due to mild winter

  • Exceptionally good earnings for a first quarter

sales of EUR 84.4 million (previous year: EUR 82.1 million). The now completed restructuring measures are reflected in an earnings position that is stable on the whole. Although, at EUR 5.5 million, earnings before interest and taxes (EBIT) came in below the previous year's figure of EUR 6.7 million, the EBIT margin, at 6.5%, lies within the 6% to 8% INDUS corridor for the Automotive Technology segment.

key figures – automotive technology (in EUR millions)
Q1 2014 Q1 2013
External sales with external third parties 84.4 82.1
EBITDA 10.2 11.3
Depreciation and amortization -4.7 -4.6
EBIT 5.5 6.7
EBIT margin in% 6.5 8.2
Capital expenditure 4.3 3.8
Employees 3,152 3,116

Sales +2.8% EBIT margin 6.5%

Overall good order situation due to the stable demand in the premium segment

indus engineering segment

Increase in Sales as a Result of Acquisitions

The Engineering segment experienced strong growth in sales in the first three months of 2014 primarily as a result of the full consolidation of the new portfolio companies BUDDE and ELTHERM. Sales were up EUR 8.2 million (approximately 24%) on the previous year. Absolute earnings before interest and taxes rose from EUR 4.5 million to EUR 5.3 million, a slightly less than proportionate increase. The EBIT margin, at 12.5% (previous year: 13.2%), approximated the previous year's level. Depreciation and amortization increased considerably owing to the intangible assets acquired in connection with the acquisitions. INDUS continues to expect, as forecast, a margin of roughly 10% for the year as a whole. Earnings for the segment have been adjusted in the previous year's figures in response to the decision in February 2014 to shut down NISTERHAMMER. These activities are presented as discontinued operations separately from segment earnings. NISTERHAMMER's traditional business with belt cleaning equipment for the steel industry is being shut down because the prognosis for its continuation is no longer positive.

key figures – engineering (in EUR millions)

Q1 2014 Q1 2013
External sales with external third parties 42.4 34.2
EBITDA 6.8 5.2
Depreciation and amortization -1.5 -0.7
EBIT 5.3 4.5
EBIT margin in % 12.5 13.2
Capital expenditure 0.9 25.4
Employees 1,141 857

Sales +24.0% EBIT margin 12.5%

New portfolio companies contribute to powerful jump in sales

> EBIT decreases slightly

> EBIT margin on previous year's level

indus medical engineering/life science segment

Exceptional Improvement in Earnings

The INDUS Group's Medical Engineering/Life Science segment once again achieved growth at the beginning of the year. Sales in the first quarter of 2014 came to EUR 25.1 million (previous year: EUR 24.8 million). Earnings before interest and taxes (EBIT) rose to a record level at EUR 4.4 million (previous year: EUR 3.5 million). The improvement in earnings has resulted from a high rate of capacity use in response to the strong demand experienced by two companies in this segment. With an EBIT margin of 17.5% (previous year: 14.1%) in the first three months, the companies in this segment have considerably outperformed their usual high earnings level of roughly 14%. The takeover of the rehabilitation specialist ROLKO that was contractually arranged in April has not been factored into the quarterly figures.

Sales +1.2% EBIT margin 17.5%

key figures – medical engineering/life science (in EUR millions)

> Slight increase in sales

High rate of capacity use leads to significant improvement in earnings

Q1 2014 Q1 2013
External sales with external third parties 25.1 24.8
EBITDA 5.0 4.1
Depreciation and amortization -0.6 -0.6
EBIT 4.4 3.5
EBIT margin in% 17.5 14.1
Capital expenditure 0.6 0.2
Employees 699 719

indus metals technology segment

Segment Earnings Are No Longer Being Depressed By Start-up Lossest

At EUR 86.3 million (previous year: EUR 75.3 million), sales in this segment exceeded the previous year's level by roughly 15%. Earnings before interest and taxes (EBIT) also recovered, so that, at EUR 9.4 million (previous year: EUR 7.6 million), EBIT as of the end of the first quarter of 2014 once again achieved a margin above the Group-wide target margin of 10%. The EBIT margin in the Metals Technology segment was 10.9% (previous year: 9.9%). INDUS continues to expect, however, that the pressure on prices currently being experienced in some parts of the segment will persist in 2014. Maintaining the INDUS target margin of 10% in this segment will continue to demand increased efforts in the future.

key figures – metals technology (in EUR millions)
Q1 2014 Q1 2013
External sales with external third parties 86.3 75.3
EBITDA 12.1 10.1
Depreciation and amortization -2.7 -2.6
EBIT 9.4 7.5
EBIT margin in % 10.9 9.9
Capital expenditure 3.2 1.3
Employees 1,273 1,267

Sales +14.6% EBIT margin 10.9%

Pricing pressure continues in some parts of the segment

Large electroplating facility running according to plan

Employees

As the year began, the number of employees working for the various INDUS Group companies held steady as a result of the order situation. The personnel ratio of roughly 29% (in relation to sales) matches that for the same period last year. In the first quarter of 2014 the INDUS Group had 7,381 employees (previous year: 7,037 employees). The increase in the number of employees is attributable primarily to the new companies.

Financial Position

consolidated statement of cash flows, condensed (in EUR millions)

Q1 2014 Q1 2013
Operating cash flow -9.8 -14.3
Interest -4.2 -4.1
Cash flow from operating activities -14.0 -18.4
Cash outflow for investments -12.0 -33.1
Cash inflow from the disposal of assets 0.6 0
Cash flow from investing activities -11.4 -33.1
Cash outflow from payments to non-controlling shareholders 0 -0.7
Cash inflow from the assumption of debt 36.0 79.2
Cash outflow from the repayment of debt -16.9 -18.5
Cash flow from financing activities 19.1 60.0
Net cash change in financial facilities -6.3 8.5
Changes in cash and cash equivalents caused by currency exchange rates 0 0.3
Cash and cash equivalents at the beginning of the period 115.9 98.7
Cash and cash equivalents at the end of the period 109.6 107.5

Statement of Cash Flows: Liquidity of More Than EUR 100 Million

Based on earnings after taxes of EUR 14.9 million from continuing operations (previous year: EUR 12.8 million), operating cash flow of EUR -9.8 million in the first three months of 2014 was negative as expected (previous year: EUR -14.3 million). Owing to the stability of demand in nearly all business segments, there was a build-up in inventories and trade receivables at the start of the year. The cost of interest paid remained unchanged in the first three months of 2014 at EUR 4.2 million (previous year: EUR 4.1 million). As a result, cash flow from operating activities came to EUR -14 million (previous year: EUR -18.4 million).

Cash outflows from investing activities amounted to EUR -33.1 million in 2013, primarily owing to the acquisition of the BUDDE Group. No purchase was made in the first quarter of 2014; consequently, cash outflows from investing activities concerned mainly property, plant, and equipment and amounted to EUR -11.4 million.

Cash inflow from financing activities dropped from EUR 60.0 million to EUR 19.1 million. New loans were arranged as the previous year began to meet repayment obligations and to build up reserve liquidity for the planned acquisitions. There were no pending repayments for the first quarter of 2014. In addition, funds are available in abundance because of the capital increase of December 2013, ensuring that there is ample room for acquisitions. EUR 109.6 million in cash and cash equivalents as of March 31, 2014 reached the high level reported in the first quarter of 2013 (previous year: EUR 107.5 million).

consolidated statement of financial position, condensed (in EUR millions)

March 31, 2014 Dec. 31, 2013
Assets
Noncurrent assets 657.2 658.1
Fixed assets 653.9 652.9
Accounts receivable and other current assets 3.3 5.2
Current assets 558.4 522.8
Inventories 258.1 236.1
Accounts receivable and other current assets 190.7 170.8
Cash and cash equivalents 109.6 115.9
Total assets 1,215.6 1,180.9

Equity and liabilities

Noncurrent liabilities 903.5 890.7
Equity 526.9 515.3
Debt 376.6 375.4
of which provisions 24.4 23.6
of which payables and income taxes 352.2 351.8
Current liabilities 312.1 290.2
of which provisions 52.9 51.0
of which liabilities 259.2 239.2
Total equity and liabilities 1,215.6 1,180.9

Statement of Financial Position: High Equity Ratio of More Than 43%

Total assets of the INDUS Group increased slightly and amounted to EUR 1,215.6 million as of March 31, 2014 (December 31, 2013: EUR 1,180.9 million). Current assets increased as a result of increased inventories and receivables at the start of the year. Cash and cash equivalents of EUR 109.6 million remained stable in comparison to the end of 2013. Group equity was EUR 526.9 million and increased again as a result of the earnings generated in the first quarter of 2014 (December 31, 2013: EUR 515.3 million). The only increase in liabilities is in current liabilities. This occurred as the annual ABS program was ramped up as planned. This did not affect the equity ratio of 43.3%, which remained at the high level observed at the end of the year (as of December 31, 2013: 43.6%). Net debt in the Group after the first quarter of 2014 was EUR 333.0 million (December 31, 2013: EUR 307.6 million).

Opportunities and Risks

INDUS Holding AG and its portfolio companies are exposed to a multiplicity of risks as a result of their international activities. Entrepreneurial activity is inextricably linked with risk-taking. At the same time, this enables the company to seize new opportunities and thus defend and strengthen the market position of the portfolio companies. The company operates an efficient risk management system for the early detection, comprehensive analysis, and systematic handling of risks. The structuring of the risk management system and significance of particular risks are discussed in detail in the 2013 annual report on pages 84ff. Here it is stated that the company does not view itself as subject to any risks that could endanger its continued existence as a going concern. The INDUS Holding AG annual report can be downloaded free of charge at www.indus.de.

Events after the Reporting Date

As of April 10, 2014, INDUS reported it had purchased 75% of the shares in the ROLKO Group, Borgholzhausen.

Outlook

  • Sales of considerably more than EUR 1.2 billion

  • Operating earnings of EUR 118 million expected

  • At least two acquisitions planned for the year as a whole

For the world economy, experts are expecting a slight acceleration of growth in 2014. The resulting rise in demand in the industrialized nations is then expected to stimulate economic activity in the emerging markets. The economic trend in Europe is expected to change in 2014. It is expected that slight growth will relieve the recession, but factors that would decisively spur demand are not expected to come from Europe. The forecasts are more optimistic for Germany. The German government's current forecast of 1.8% growth indicates, however, that it is still too early to expect a major boom.

In this generally rather subdued environment, INDUS was able to post a clear rise in sales for the entire Group in the first three months together with improved operating earnings. The COMPASS 2020 growth program that has been started is therefore paying off. INDUS has set itself moderate growth targets for 2014 as well, targets that are to be achieved through both organic and acquisition-related growth. A solid financial base continues to be its top priority. The Board of Management reaffirms its positive forecast for 2014 as a whole and continues to expect the Group's sales and earnings position to surpass that of the previous year. Sales of more than EUR 1.2 billion and an EBIT of approximately EUR 118 million are expected. Not factored into these sales and earnings targets are acquisitions that may be made over the course of the year.

consolidated interim financial statements

  • 16 Consolidated Statement of Income
  • 17 Statement of Income and Accumulated Earnings
  • 18 Consolidated Statement of Financial Position
  • 19 Consolidated Statement of Equity
  • 20 Consolidated Statement of Cash Flows
  • 21 Notes

Consolidated Statement of Income

in EUR '000 Notes Q1 2014 Q1 2013*
Sales 287,187 262,471
Other operating income 4,121 4,131
Own work capitalized 564 511
Change in inventories 15,081 8,656
Cost of materials [5] -144,533 -131,055
Personnel expenses [6] -84,097 -75,432
Depreciation and amortization -10,900 -9,890
Other operating expenses [7] -39,391 -34,979
Income from shares accounted for using the equity method 207 0
Financial result 39 37
Operating result (EBIT) 28,278 24,450
Interest income 94 82
Interest expenses -5,047 -4,674
Net interest [8] -4,953 -4,592
Earnings before taxes 23,325 19,858
Taxes [9] -8,477 -7,045
Income from discontinued operations [4] -1,559 -391
Earnings after taxes 13,289 12,422
of which allocable to non-controlling interests 171 133
of which allocable to INDUS shareholders 13,118 12,289
Earnings per share (diluted and undiluted) in EUR
(continuing operations)
[10] 0.60 0.57
* Previous year's figures adjusted

Statement of Income and Accumulated Earnings

in EUR '000 Q1 2014 Q1 2013
Earnings after taxes 13,289 12,422
Actuarial gains and losses -848 -226
Deferred taxes 244 65
Items not reclassified to profit or loss -604 -161
Currency translation adjustment -423 -445
Change in the market values of derivative financial instruments (cash flow hedge) -792 1,056
Deferred taxes 125 -167
Items to be reclassified to profit or loss in future -1,090 444
Other income -1,694 283
Overall result 11,595 12,705
of which allocable to non-controlling shareholders 171 133
of which allocable to INDUS shareholders 11,424 12,572

The income and expenses of EUR -1,694,000 recognized directly in equity under other income include EUR -848,000 in actuarial losses from pension plans and similar obligations. This resulted primarily from lowering the interest rate on domestic commitments from 3.7 % as of December 31, 2013, to 3.4 % as of March 31, 2014.

Net income from currency translation of EUR -423,000 is derived from the translated net profits of consolidated international subsidiaries. The change in fair values of derivative financial instruments in the amount of EUR -792,000 was chiefly the result of interest rate swaps transacted by the holding company.

Consolidated Statement of Financial Position

in EUR '000 Notes March 31, 2014 Dec. 31, 2013
ASSETS
Goodwill 331,698 331,606
Other intangible assets [11] 28,245 28,887
Property, plant, and equipment [12] 273,370 271,833
Investment property 5,935 5,965
Financial assets 8,660 8,843
Shares accounted for using the equity method 5,945 5,737
Other noncurrent assets 1,070 2,901
Deferred taxes 2,259 2,303
Noncurrent assets 657,182 658,075
Inventories [13] 258,062 236,056
Accounts receivable [14] 172,471 156,218
Other current assets 16,518 12,050
Current income taxes 1,790 2,584
Cash and cash equivalents 109,570 115,921
Current assets 558,411 522,829
Total assets 1,215,593 1,180,904
EQUITY AND LIABILITIES
Subscribed capital
63,571 63,571
Capital reserve 239,833 239,833
Other reserves 222,723 211,299
Equity held by INDUS shareholders 526,127 514,703
Non-controlling interests in the equity 798 627
Equity 526,925 515,330
Provisions for pensions 22,764 21,803
Other noncurrent provisions 1,661 1,755
Noncurrent financial liabilities 304,548 304,769
Other noncurrent liabilities 21,684 21,376
Deferred taxes 25,893 25,716
Noncurrent liabilities 376.550 375,419
Other current provisions 52,878 51,008
Current financial liabilities 138,022 118,760
Trade accounts payable 57,907 45,543
Other current liabilities 59,660 69,687
Current income taxes 3,651 5,157
Current liabilities 312.118 290,155
Total equity and liabilities 1,215,593 1,180,904

Consolidated Statement of Equity

in EUR '000 Subscribed
capital
Capital
reserve
Retained
Earnings
Other
Earnings
Equity held
by INDUS
shareholders
Interests
allocable to
non-controlling
shareholders
Group
equity
Balance Dec. 31, 2012 57,792 185,672 174,042 -8,636 408,870 1,242 410,112
Changes in accounting principles
based on IAS 19 and IAS 8
357 3,669 4,026 4,026
Balance Dec. 31, 2012 57,792 185,672 174,399 -4,967 412,896 1,242 414,138
Income after taxes 12,289 12,289 133 12,422
Other income 283 283 283
Overall result 12,289 283 12,572 133 12,705
Dividend payment -673 -673
Balance Mar. 31, 2013 57,792 185,672 186,688 -4,684 425,468 702 426,170
Balance Dec. 31, 2013 63,571 239,833 216,024 -4,725 514,703 627 515,330
Income after taxes 13,118 13,118 171 13,289
Other income -1,694 -1,694 -1,694
Overall result 13,118 -1,694 11,424 171 11,595
Balance Mar. 31, 2014 63,571 239,833 229,142 -6,419 526,127 798 526,925

Interests held by non-controlling shareholders essentially consist of the non-controlling interests in the limited liability companies WEIGAND Bau GmbH and SELZER Automotiva do Brasil. Interests held by non-controlling shareholders in limited partnerships and limited liability companies for which, at the time of purchase, the economic ownership of the corresponding non-controlling interests had already been passed on under reciprocal option agreements are shown under other liabilities. This relates in particular to SELZER Fertigungstechnik GmbH & Co. KG, Helmut RÜBSAMEN GmbH & Co. KG, BUDDE Fördertechnik GmbH and ELTHERM GmbH.

Consolidated Statement of Cash Flows

in EUR '000 Q1 2014 Q1 2013*
Income after taxes generated by continuing operations 14,850 12,813
Depreciation/write-ups of noncurrent assets 10,900 9,890
Taxes 8,477 7,045
Net interest 4,953 4,592
Cash earnings of discontinued operations -1,033 -421
Other non-cash transactions -1,568 -928
Changes in provisions 1,801 3,555
Increase (-)/decrease (+) in inventories, trade accounts receivable, and other assets -39,086 -36,217
Increase (+)/decrease (-) in trade accounts payable and other liabilities -504 -6,683
Income taxes received/paid -8,570 -7,956
Operating cash flow -9,780 -14,310
Interest paid -4,330 -4,164
Interest received 94 82
Cash flow from operating activities -14,016 -18,392
Cash outflow from investments in
property, plant, and equipment, and in intangible assets -11,857 -8,151
financial assets and shares accounted for using the equity method -185 -232
shares in fully consolidated companies 0 -24,686
Cash inflow from the disposal of
other assets 660 28
Cash flow from investing activities of discontinued operations 0 -14
Cash flow from investing activities -11,382 -33,055
Cash outflow from payments to non-controlling shareholders 0 -673
Cash inflow from the assumption of debt 35,959 79,227
Cash outflow from the repayment of debt -16,917 -18,559
Cash flow from financing activities 19,042 59,995
Net cash change in financial facilities -6,356 8,548
Changes in cash and cash equivalents caused by currency exchange rates 5 281
Cash and cash equivalents at the beginning of the period 115,921 98,710
Cash and cash equivalents at the end of the period 109,570 107,539

*Previous year's figures adjusted

Notes Basic Principles

[1] GENERAL INFORMATION

INDUS Holding AG, based in Bergisch Gladbach, Germany, prepared its consolidated financial statements for the first quarter of 2014 in accordance with International Financial Reporting Standards (IFRS) and interpretations of these standards by the International Financial Reporting Interpretations Committee (IFRIC) as to their applicability in the European Union (EU). The consolidated financial statements are prepared in euros (EUR). Unless otherwise indicated, all amounts are stated in thousands of euros (EUR '000).

These interim financial statements are prepared in accordance with IAS 34 in condensed form. The interim report has not been audited, nor subjected to perusal or review by an auditor.

New obligatory standards are reported on separately in the section "Changes in Accounting Guidelines". Otherwise, the same accounting methods were applied as in the consolidated financial statements for the 2013 fiscal year. They are described there in detail. Because this interim quarterly report does not provide the full scope of information found in the annual financial statements, these financial statements should be considered within the context of the last annual financial statements.

In the Board of Management's view, this quarterly report includes all of the usual ongoing adjustments that are necessary for an appropriate presentation of the Group's net assets, financial, and earnings position. The results achieved in the first quarter of the 2014 fiscal year do not necessarily predict future business performance.

The preparation of consolidated financial statements is influenced by accounting and valuation principles, and requires assumptions and estimates to be made which have an impact on the recognized value of the assets, liabilities, and contingent liabilities, as well as on income and expenses. When estimates are made regarding the future, actual values may deviate from the estimates. If the original basis for the estimates changes, the statement of the relevant items is adjusted through profit and loss.

[2] CHANGES IN ACCOUNTING GUIDELINES

All obligatory accounting standards in effect as of fiscal year 2014 have been implemented in these interim financial statements.

In May 2011 the IASB published three new standards regarding consolidation: IFRS 10 "Consolidated Financial Statements", IFRS 11 "Joint Arrangements", and IFRS 12 "Disclosure of Interests in Other Entities". In addition, changes to two existing standards were published: IAS 27 "Separate Financial Statements" and IAS 28 "Investments in Associates and Joint Ventures". Initial application of the standards is mandatory for fiscal years beginning on or after January 1, 2014. The new standards do not affect in any way the presentation of the net assets, financial, and earnings position of INDUS Holding AG in the consolidated financial statements.

[3] SCOPE OF CONSOLIDATION

In the consolidated financial statements, all subsidiary companies are fully consolidated if the INDUS Group has the direct or indirect possibility of influencing the companies' financial and business policy for the benefit of the INDUS Group. This is generally the case if the INDUS Group holds more than 50 % of the voting rights in a portfolio company or contractual provisions stipulate that the INDUS Group retains all of the main opportunities and risks associated with the company. Associated companies whose financial and business policies can be significantly influenced are consolidated using the equity method. Companies purchased during the course of the fiscal year are consolidated as of the date on which control over their finance and business policy is transferred. Companies which are sold are no longer included in the scope of consolidation as of the date on which the business is transferred. After the date on which the decision is made to divest the company in question, these are classified as "held for sale."

[4] DISCONTINUED OPERATION

At the end of February 2014, the Board of Management of INDUS Holding AG resolved to shut down and wind up the business operations of NISTERHAMMER Maschinenbau GmbH & Co. KG, Nister, with the approval of the Supervisory Board. NISTERHAMMER was classified as part of the Engineering segment.

The presentation as "discontinued operations" is due to the shut-down of operations. The income and expenses of NISTERHAMMER in the first quarter of 2014 and the first quarter of 2013 amounted to:

in EUR '000 Q1 2014 Q1 2013
Sales 38 2,978
Expenses and other income -1,854 -3,442
Operating result -1,816 -464
Net interest -36 0
Earnings before taxes -1,852 -464
Taxes 293 73
Income from discontinued operations -1,559 -391

Presentation of NISTERHAMMER as discontinued operations requires an adjustment of the previous year's figures in the statement of income:

Q1 2013
published
IFRS 5 Q1 2013
adjusted
Sales 265,449 -2,978 262,471
Other operating income 4,125 6 4,131
Own work capitalized 511 0 511
Change in inventories 8,695 -39 8,656
Cost of materials -133,208 2,153 -131,055
Personnel expenses -76,431 999 -75,432
Depreciation and amortization -9,933 43 -9,890
Other operating expenses -35,259 280 -34,979
Financial result 37 0 37
Operating result (EBIT) 23,986 464 24,450
Interest income 82 0 82
Interest expenses -4,674 0 -4,674
Net interest -4,592 0 -4,592
Earnings before taxes 19,394 464 19,858
Taxes -6,972 -73 -7,045
Income from discontinued operations 0 -391 -391
Earnings after taxes 12,422 0 12,422
of which allocable to non-controlling shareholders 133 0 133
of which allocable to INDUS shareholders 12,289 0 12,289
Earnings per share (diluted and undiluted) in EUR 0.55 -0.02 0.57

adjustment of the previous year's statement of income (in EUR '000)

Notes to the Statement of Income

[5] COST OF MATERIALS

Total -144,533 -131,055
Purchased services -17,952 -16,856
Raw materials and goods for resale -126,581 -114,199
in EUR '000 Q1 2014 Q1 2013

[6] PERSONNEL EXPENSES

in EUR '000 Q1 2014 Q1 2013
Wages and salaries -71,523 -63,844
Social security -11,776 -10,970
Pensions -798 -618
Total -84,097 -75,432

[7] OTHER OPERATING EXPENSES

Total -39,391 -34,979
Other expenses -1,393 -1,844
Administrative expenses -7,817 -6,524
Operating expenses -14,546 -12,866
Selling expenses -15,635 -13,745
in EUR '000 Q1 2014 Q1 2013

[8] NET INTEREST

in EUR '000 Q1 2014 Q1 2013
Interest and similar income 94 82
Interest and similar expenses -4,184 -4,786
Interest from operations -4,090 -4,704
Other: Market value of interest-rate swaps 172 332
Other: Non-controlling interests -1,035 -220
Other interest -863 112
Total -4,953 -4,592

[9] INCOME TAXES

Income tax expense is calculated for the interim financial statements based on the assumptions of current tax planning.

[10] EARNINGS PER SHARE

in EUR '000 Q1 2014 Q1 2013
Earnings attributable to INDUS shareholders 13,118 12,289
Earnings attributable to discontinued operations -1,559 -391
Earnings attributable to continuing operations 14,677 12,680
Weighted average shares outstanding (in thousands) 24,451 22,228
Earnings per share, continuing operations (in EUR) 0.60 0.57
Earnings per share, discontinued operations (in EUR) -0.06 -0.02

Notes to the Consolidated Statement of Financial Position

[11] OTHER INTANGIBLE ASSETS

in EUR '000 March 31, 2014 Dec. 31, 2013
Capitalized development costs 8,088 8,155
Property rights, concessions, and other intangible assets 20,157 20,732
Total 28,245 28,887

[12] PROPERTY, PLANT, AND EQUIPMENT

in EUR '000 March 31, 2014 Dec. 31, 2013
Land and buildings 140,549 140,984
Plant and machinery 74,346 77,388
Other equipment, factory, and office equipment 34,716 34,728
Advance payments and work in process 23,759 18,733
Total 273,370 271,833

[13] INVENTORIES

in EUR '000 March 31, 2014 Dec. 31, 2013
Raw materials and supplies 88,390 82,493
Unfinished goods 87,513 74,579
Finished goods and goods for resale 77,233 73,252
Prepayments for inventories 4,926 5,732
Total 258,062 236,056

[14] ACCOUNTS RECEIVABLE

15,458
11,048
6,205
7,276
150,808
137,894
March 31, 2014
Dec. 31, 2013

Other disclosures

[15] SEGMENT REPORTING

segment information by operation (continuing operations)

segment information in accordance with ifrs 8 (in EUR '000)

Construction/
Infrastructure
Automotive
Technology
Engineering Medical
Engineering/
Life Science
Metals
Technology
Total
Segments
Reconciliation Consolidated
financial
statements
Q1 2014
External sales with external
third parties
49,142 84,371 42,443 25,066 86,309 287,331 -144 287,187
External sales with Group companies 2,680 8,605 8,727 409 7,731 28,152 -28,152 0
Sales 51,822 92,976 51,170 25,475 94,040 315,483 -28,296 287,187
Segment earnings (EBIT) 4,572 5,536 5,330 4,379 9,377 29,194 -916 28,278
Earnings from equity valuation 0 207 0 0 0 207 0 207
Depreciation and amortization -1,316 -4,692 -1,442 -589 -2,722 -10,761 -139 -10,900
Segment EBITDA 5,888 10,228 6,772 4,968 12,099 39,955 -777 39,178
Capital expenditure 2,943 4,255 906 567 3,202 11,873 169 12,042
Q1 2013
External sales with external
third parties
46,057 82,060 34,220 24,833 75,321 262,491 -20 262,471
External sales with Group companies 1,929 7,784 1,321 356 8,407 19,797 -19,797 0
Sales 47,986 89,844 35,541 25,189 83,728 282,288 -19,817 262,471
Segment earnings (EBIT) 3,520 6,701 4,464 3,538 7,459 25,682 -1,232 24,450
Earnings from equity valuation 0 0 0 0 0 0 0 0
Depreciation and amortization -1,272 -4,607 -696 -579 -2,628 -9,782 -108 -9,890
Segment EBITDA 4,792 11,308 5,160 4,117 10,087 35,464 -1,124 34,340
Capital expenditure 2,637 3,786 25,366 210 1,346 33,345 149 33,494
of which company acquisitions 0 0 24,686 0 0 24,686 0 24,686
of which shares accounted
for using the equity method
1,596 2,555 0 0 0 4,151 0 4,151

The table below reconciles the total operating results of segment reporting with the calculation of income before tax:

reconciliation (in EUR '000)

Q1 2014 Q1 2013
Segment earnings (EBIT) 29,194 25,682
Areas not allocated, incl. holding company -939 -1,064
Consolidations 23 -168
Net interest -4,953 -4,592
Earnings before taxes 23,325 19,858

The classification of segments corresponds unchanged to the current status of internal reporting. The information relates to continuing activities. The companies are allocated to the segments on the basis of their selling markets insofar as the bulk of their product range is sold in that market environment (Automotive Technology, Medical Engineering/Life Science). Otherwise they are classified by common features in their production structure (Construction/Infrastructure, Engineering, Metals Technology).

The reconciliations contain the figures of the holding company, non-operational units not allocated to any segment, and consolidations. See the discussion provided in the management report regarding the products and services that generate segment sales.

The central control variable for the segments is operating earnings (EBIT) as defined in the consolidated financial statements. The segment information has been ascertained in compliance with the reporting and valuation methods that were applied during the preparation of the consolidated financial statements. Intersegment prices are based on arm's length prices to the extent that they can be established in a reliable manner and are determined on the basis of the cost-plus pricing method.

segment information by region

Sales are broken down by region in relation to our selling markets. The further classification of our diverse foreign activities by country is not expedient, as no country outside of Germany accounts for 10% of Group sales.

Noncurrent assets, less deferred taxes and financial instruments, are based on the domiciles of the respective companies. Further differentiation is not expedient, as the majority of companies are domiciled in Germany.

Due to INDUS's diversification policy there were no individual product or service groups and no individual customers that accounted for more than 10% of sales.

in EUR '000 Group Germany EU Rest of world
Q1 2014
External sales with external third parties 287,187 144,294 66,024 76,869
Noncurrent assets, less deferred taxes
and financial instruments
645,193 559,661 5,826 79,706
Q1 2013
External sales with external third parties 262,471 136,417 53,898 72,156
Noncurrent assets, less deferred taxes
and financial instruments
644,027 561,751 15,375 66,901

[16] INFORMATION ON THE SIGNIFICANCE OF FINANCIAL INSTRUMENTS

The table below shows the carrying amounts and fair values of financial instruments. The fair value of a financial instrument is the price that would be paid in an orderly transaction between market participants for the sale of an asset or transfer of a liability on the measurement date. Due to the influencing variables involved, reported fair value can only be regarded as an indicator of the actually realizable market value.

Balance
sheet value
IFRS 7
not applicable
Financial
instruments IFRS 7
Measured at
fair value
Measured at
amortized cost
Carrying
amount
Carrying
amount
Market
value
Financial assets 8,660 8,660 8,660 9,435
Cash and cash equivalents 109,570 109,570 109,570 109,570
Accounts receivable 172,471 15,458 157,013 157,013 157,013
Other assets 17,588 3,940 13,648 69 13,579 13,579
Total assets 308,289 19,398 288,891 69 288,822 289,597
Financial liabilities 442,570 442,570 442,570 430,610
Trade accounts payable 57,907 6,556 51,351 51,351 51,351
Other liabilities 81,343 9,762 71,581 7,082 64,499 64,499
Total financial liabilities 581,820 16,318 565,502 7,082 558,420 546,460

financial instruments as of march 31, 2014 (in EUR '000)

financial instruments as of dec. 31, 2013 (in EUR '000)
Balance
sheet value
IFRS 7
not applicable
Financial
instruments IFRS 7
Measured at
fair value
Measured at
amortized cost
Carrying
amount
Carrying
amount
Market
value
Financial assets 8,843 8,843 8,843 9,617
Cash and cash equivalents 115,921 115,921 115,921 115,921
Accounts receivable 156,218 11,048 145,170 145,170 145,170
Other assets 14,951 2,156 12,795 12,795 12,795
Total assets 295,933 13,204 282,729 0 282,729 283,503
Financial liabilities 423,529 423,529 423,529 410,383
Trade accounts payable 45,543 6,827 38,716 38,716 38,716
Other liabilities 91,063 11,367 79,696 6,452 73,244 73,244
Total financial liabilities 560,135 18,194 541,941 6,452 535,489 522,343

financial instruments by valuation categories ias 39 (in EUR '000)

Carrying amount
March 31, 2014 Dec. 31, 2013
Measured at fair value through profit and loss 69 0
Loans and receivables 288,379 282,040
Available-for-sale financial assets 443 689
Financial instruments: ASSETS 288,891 282,729
Measured at fair value through profit and loss 7,082 6,452
Financial liabilities measured at their residual carrying amounts 558,420 535,489
Financial instruments: EQUITY AND LIABILITIES 565,502 541,941

Available-for-sale financial assets are long-term financial investments for which no pricing on an active market is available and the fair value of which cannot be reliably determined. These are carried at cost.

[17] TRANSACTIONS WITH RELATED PARTIES

Related party disclosures primarily involve the ongoing remuneration of members of management in key positions, the Board of Management, and the Supervisory Board. Furthermore, there are consulting contracts and rent or leasing contracts in place with non-controlling shareholders or members of their families, and business relations with associated companies.

The quarterly financial statements do not contain information about changes in relationships that significantly differ from those in the 2013 annual financial statements.

[18] EVENTS AFTER THE QUARTERLY REPORTING DATE

By contract dated April 10, 2014, INDUS Holding AG acquired 75 % of the shares in ROLKO Kohlgrüber GmbH, based in Borgholzhausen. With locations in Borgholzhausen, Silkeborg (Denmark), Houten (the Netherlands) and Xiamen (China), the ROLKO Group is a leading supplier of rehabilitation accessories, particularly for wheelchairs and rollators. It was first consolidated in May 2014 and was classified as part of the Medical Engineering/Life Science segment.

The purchase price allocation has not been prepared to date, because IFRS financial statements must be prepared first.

[19] APPROVAL FOR PUBLICATION

The Board of Management of INDUS Holding AG approved this IFRS interim financial statement for publication on May 20, 2014.

Bergisch Gladbach, May 20, 2014 INDUS Holding AG

The Board of Management

Jürgen Abromeit Dr. Johannes Schmidt Rudolf Weichert

Contact

INDUS Holding AG

Kölner Straße 32 51429 Bergisch Gladbach P.O. Box 10 03 53 51403 Bergisch Gladbach Phone: +49 (0)2204/40 00-0 Fax: +49 (0)2204/40 00-20 Internet: www.indus.de E-mail: [email protected]

Financial Calendar 2014

June 11, 2014 Annual shareholders' meeting 2014, Cologne
June 12, 2014 Payout of dividend
August 21, 2014 Interim report on June 30, 2014
November 19, 2014 Interim report on September 30, 2014

Imprint

Responsible member of the Management Board: Jürgen Abromeit

Head of Public Relations

& Investor Relations: Regina Wolter Phone: +49 (0)2204/40 00-70 Fax: +49 (0)2204/40 00-20 E-mail: [email protected]

Publisher:

INDUS Holding AG, Bergisch Gladbach

Concept/Design: Berichtsmanufaktur GmbH, Hamburg

Photos:

Cover: PLANETROLL p. 3: ROLKO

This interim report is also available in German. Only the German version of the interim report is legally binding.

Disclaimer: This interim report contains forward-looking statements based on assumptions and estimates made by the Board of Management of INDUS Holding AG. Although the Board of Management is of the opinion that these assumptions and estimates are accurate, they are subject to certain risks and uncertainty. Actual future results may deviate substantially from these assumptions and estimates due to a variety of factors. These factors include changes in the general economic situation, the business, economic and competitive situation, foreign exchange and interest rates, and the legal setting. INDUS Holding AG shall not be held liable for the future development and actual future results being in line with the assumptions and estimates included in this interim report. Assumptions and estimates made in this interim report will not be updated.

www.indus.de

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