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INDUS Holding AG

Quarterly Report May 18, 2016

220_10-q_2016-05-18_448cea0d-e1de-4005-ab80-85013519d200.pdf

Quarterly Report

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Q1 2016 — INDUS HOLDING AG

HIGHLIGHTS

  • Business going satisfactorily overall in the first quarter
  • Four strategic acquisitions made
  • Pleasingly strong jump in revenue in the Construction/ Infrastructure segment
  • Margin in vehicle sector remains disappointing
  • Success of restructuring efforts apparent in Metals Technology income
KEY FIGURES (IN EUR MILLIONS) Q1 2016 Q1 2015
Sales 332.8 327.9
EBITDA 43.8 43.4
EBIT 30.5 31.5
Net result for the period 16.0 15.9
Earnings per share (in EUR) 0.65 0.65
Operating cash flow -6.3 3.5
31.3.2016 31.12.2015
Total assets 1,417.4 1,419.8
Equity capital 607.9 595.4
Net debt 376.7 356.3
Equity ratio in % 42.9 41.9
Investments (as of the reporting date) 43 44

CONTENTS

  • LETTER TO THE SHAREHOLDERS
  • INDUS FACTS: CHINA p. 2
  • INTERIM MANAGEMENT REPORT CONSOLIDATED INTERIM FINANCIAL
  • STATEMENTS p. 14
  • CONTACT Ⅰ FINANCIAL CALENDAR Ⅰ IMPRINT

LETTER TO THE SHAREHOLDERS

DEAR SHAREHOLDERS,

Fiscal 2015 ended with a bang for INDUS. The start of 2016 on the other hand proved more difficult. Weaker economic figures from Asia (particularly China), lower growth expectations, and weaker momentum in Europe and the USA all contributed to a more pessimistic mood. This was enhanced by the continued drop in oil prices and the ongoing liberal monetary policy of the most important central banks. This toxic cocktail caused stock markets around the world to plummet. January was therefore not just a tough month for INDUS.

The situation has now stabilized considerably. The collapse in raw material prices, particularly for oil, seems to have come to an end. And economic data for the USA and Europe looks reasonable. The labor markets are looking good and consumer spending is stable. The stabilization seen with regard to monetary policy crises is also having a significant psychological impact.

We are still quite satisfied with the performance in the first quarter, particularly in light of the difficult start. The considerable increase in demand that we have seen since February has given us confidence for the future business development. We are sticking with our targets, but are also aware that we will surely have to face upheavals and setbacks in the coming months, too. But the Group is well prepared for the challenge. Even in such a difficult environment, INDUS will continue along its successful growth path.

It can certainly be said that the situation in Asia has bottomed out. China is making huge efforts to stimulate growth with economic packages and incentives. But one thing is certain: Asia, and China in particular, remain among the world's largest growth regions. The transformation process from low-wage country to a leading technological location with a developed economy is well underway. Our hidden champions in the SME industry are not going to Asia to take advantage of low-cost production, but rather because their high-quality products are increasingly in demand there. And they have no reason to fear Chinese competition. This applies to BETEK, M.BRAUN, ROLKO, ELTHERM, BILSTEIN & SIEKERMANN and MBN. All these INDUS companies now supply the market with products made in China, backed by German expertise. And our managing directors are confident that there is still plenty of opportunity to be exploited.

INDUS is and will remain firmly anchored in the German SME industry. But our domestic companies will continue to seek out markets, customers, suppliers, and production sites around the world.

Bergisch Gladbach, Germany, May 2016 Yours, The Board of Management

Jürgen Abromeit Dr. Johannes Schmidt Rudolf Weichert

INDUS IN CHINA

ASIA REMAINS A GROWTH MARKET

"Too slow growth for too long," was part of the title for the International Monetary Foundation's global growth forecast in April. Experts anticipate just 3.2 % growth this year and 3.5 % next year as they warn of long-term stagnation. Growth in China, too, is increasingly losing pace. Simultaneously, the country faces economic restructuring. Does the German SME industry have anything to fear with these figures? "No," is the answer from three of the INDUS Group portfolio companies. On the contrary: There is so much potential in China and other Asian countries that they are currently actively investing in this market.

3 INTERIM MANAGEMENT REPORT INDUS Facts: China

Heiko Krause, member of management at MBN

MBN IS BOOSTING ITS SKILLS AND COOPERATION NETWORKS LOCALLY

"Even though the Chinese automotive market is already the world's largest, there is still great scope for development in vehicle construction. MBN intends to play a part in this potential. On our side we have the fact that we have been a local presence for 15 years, and OEMs and their joint venture partners trust us. Large manufacturers such as VW, BMW, and Daimler are currently investing vast sums in developing and manufacturing new vehicle models in China. In order to provide the best possible support via our MBN China subsidiary, we are cultivating the knowledge and quality of our local experts and expanding our network with new system partnerships."

MBN Maschinenbaubetriebe Neugersdorf GmbH, Ebersbach-Neugersdorf www.mbn-gmbh.de

The engineering company from Neugersdorf specializes in equipment and machinery for final vehicle assembly. Its key customers include the large German automotive brands and their foreign subsidiaries. Since 2011 MBN has had a company in Chanchung.

Jürgen Abromeit

»Our portfolio companies are well prepared for the transformation process that China is currently facing. They will continue to evolve and perform well in 2016 and beyond.« "Asia is the world's hub when it comes to the production of high-tech displays. And we expect that this will remain the case long term. The investment climate in the high-tech sector is currently positive. We have been present in China for a decade and a half, and have fully settled in: Our long-term personnel policies are reflected in high employee loyalty, and our processes run like clockwork along the entire value chain from the supply chain to the production. Thanks to this positive foundation we are in a position to expand our service platform at the moment: in the areas of software development and construction, service, and manufacturing. We are also investing intensely in employee training in order to ensure our high quality standards are maintained."

M.BRAUN IS FULLY ESTABLISHED AT THE WORLD'S WORKBENCH FOR HIGH-TECH PRODUCTS.

Dr. Reinelt, member of management at M.BRAUN

M. BRAUN Inertgas-Systeme GmbH & Co. KG, Garching — www.mbraun.de

M.BRAUN develops and produces high-quality inert gas glove box systems and gas purification equipment – and from 2002 with a company in Shanghai. The systems are used in the manufacture of high-tech products, such as flat screens with OLED technology and pharmaceutical products.

Dr. Frank Thiele, CEO at BETEK

FOR BETEK'S CUSTOMERS »LOCAL CONTENT« IS THE DECISIVE FACTOR.

"China represents an excellent economic environment for BETEK. 50% of global coal mining takes place in China. There are huge infrastructure projects and rapidly expanding metropolises. It is here that BETEK is active, serving the market with a local-for-local strategy. Our plant in Taicang allows us to participate directly on the Chinese market. Shorter chains and faster delivery times as well as local product support all represents significant added value for our customers. Our Chinese customers particularly value the consistently high quality of our products. We have distinguished ourselves on the market and achieved an outstanding position against the competition."

BETEK

GmbH & Co. KG, Aichhalden — www.betek.de

BETEK's carbide tools are used in many sectors around the world: road construction, mining and tunneling, surface mining, agriculture, and recycling. Last year the company began to set up a production site in Taicang in order to supply customers there directly who had previously been supplied from Germany.

INTERIM MANAGEMENT REPORT

PERFORMANCE OF THE INDUS GROUP

  • IN THE FIRST QUARTER OF 2016 p. 6
  • SEGMENT REPORT FINANCIAL POSITION p. 8 p. 10
  • OPPORTUNITIES AND RISKS p. 13
  • FORECAST p. 13

PERFORMANCE OF THE INDUS GROUP IN THE FIRST QUARTER OF 2016

CONSOLIDATED STATEMENT OF INCOME (IN EUR '000)

DIFFERENCE
Q1 2016 Q1 2015 ABSOLUTE IN %
Sales 332.8 327.9 4.9 1.5
Other operating income 3.6 5.9 -2.3 -39.0
Own work capitalized 1.2 0.7 0.5 71.4
Change in inventories 5.4 13.5 -8.1 -60.0
Overall performance 343.0 348.0 -5.0 -1.4
Cost of materials -150.7 -165.4 14.7 -8.9
Personnel expenses -102.3 -94.6 -7.7 8.1
Other operating expenses -46.5 -44.7 -1.8 4.0
Income from shares accounted for using the equity method 0.2 0.1 0.1 100.0
Other financial results 0.1 0.0 0.1
EBITDA 43.8 43.4 0.4 0.9
Depreciation and amortization -13.3 -11.9 -1.4 11.8
Operating result (EBIT) 30.5 31.5 -1.0 -3.2
Net interest -5.8 -6.7 0.9 -13.4
Earnings before taxes (EBT) 24.7 24.8 -0.1 -0.4
Taxes -8.7 -8.9 0.2 -2.2
Overall result 16.0 15.9 0.1 0.6
of which allocable to non-controlling shareholders 0.1 0.1 0.0 0.0
of which allocable to INDUS shareholders 15.9 15.8 0.1 0.6

All sectors (with the exception of Construction/ Infrastructure) experienced an unexpectedly sluggish start to 2016, but the economy picked up in the following months so that despite a few negative effects a satisfactory result was recorded overall for the first quarter. Group sales at INDUS Holding AG grew slightly to EUR 332.8 million (previous year: EUR 327.9 million). The cost of materials sank once more against the previous year, resulting in a cost of materials ratio of 45.3% (previous year: 50.4%). Personnel expenses rose in absolute terms as a result of the inclusion of new portfolio companies. The personnel expense ratio also climbed slightly to 30.7% (previous year: 28.9%). Amortization rose to a total of EUR 13.3 million (previous year: EUR 11.9 million). This increase reflects the continually rising level of investments made by the Group as well as the increase in amortization on added values discovered as part of the purchase price allocation of newly acquired companies.

INDUS' growth course and the ongoing acquisitions have resulted in non-operating impacts on earnings, caused primarily by the amortization from the approach of valuing assets at fair value as part of the purchase price allocation and acquisition transaction costs. operating result (EBIT) adjusted for these effects amounted to EUR 32.6 million (previous year: EUR 33.5 million).

RECONCILIATION (IN EUR MILLIONS)
DIFFERENCE
Q1 2016 Q1 2015 ABSOLUTE IN %
Operating result (EBIT) 30.5 31.5 -1.0 -3.2
Depreciation of property, plant, and equipment, and
amortization of intangible assets due to fair value
adjustments from first-time consolidation*
1.5 1.1 0.4 36.4
Impact of fair value adjustments on inventory assets/order
backlog from first-time consolidation** and incidental
acquisition costs
0.6 0.9 -0.3 -33.3
Adjusted operating result (EBIT) 32.6 33.5 -0.9 -2.7

* Depreciation/amortization from fair value adjustments relate to identified assets at fair value in connection with acquisitions made by the INDUS Group.

** Impacts of fair value adjustments in inventory assets/order backlog relate to identified added value, included in the purchase price allocation and recognized after initial consolidation.

The operating result (EBIT) for the first three months of 2016 came in at EUR 30.5 million, and was therefore down slightly against the previous year (EUR 31.5 million). Due to the weak start to the year and the two factors in the sectors Automotive Technology and Medical Engineering which had a negative impact on the result, the Group's EBIT margin for the first quarter of 2016 stood at 9.2% (previous year: 9.6%). The adjusted EBIT margin was 9.8% (previous year: 10.2%).

The interest result improved by 13%, coming in at EUR -5.8 million. This is due firstly to another decrease in operating interest expenses (operating interest expense in Q1 2016 was EUR 3.9 million, in Q1 2015 it was EUR 4.2 million) as well as a drop in profit attributable to minority shareholders. At EUR 24.7 million, earnings before taxes were almost on a par with the previous year, and the tax expenses were equal to the previous year's level at EUR 8.7 million. At EUR 16.0 million, earnings after taxes slightly exceeded the result achieved in Q1 2015. After deducting the shares of non-controlling shareholders, the net result for the period was up slightly at EUR 15.9 million (previous year: EUR 15.8 million). At EUR 0.65, earnings per share were on a par with Q1 2015.

On average, 9,111 employees (previous year: 8,037 employees) were employed by the companies in the first three months of 2016.

INVESTMENTS AND ACQUISITIONS IN 2016

In the first four and a half months of 2016, INDUS acquired a total of four strategic additions for existing portfolio companies. The acquisition of COMPUTEC AG in Murrhardt by the INDUS portfolio company BUDDE Fördertechnik took place in the first quarter of 2016. COMPUTEC specializes in automation technology and covers a broad spectrum from electronics to programming controlling software for (conveyor) equipment. The software is already in use at some of the package distribution centers designed by the BUDDE group.

The other acquisitions were completed in April and May 2016. On April 20, 2016, M.BRAUN acquired the company CREAPHYS, a specialist in organic electronics. The company, which started in 1999 in the TU Dresden, engineers and constructs high-vacuum systems and components for applying thin organic and other surfaces, vacuum sublimination systems, and thermal evaporators. CREAPHYS's customers include many research institutes in this field, as well as multinational chemicals and electronics manufacturers.

In order to boost its value chain, AURORA acquired a majority stake in AFK, based in Oettingen, on April 28, 2016. AFK specializes in convector construction.

On May 2, 2016, the acquisition of CAETEC for IPETRONIK was successfully concluded. The company develops measuring technology, used in vehicle trials, primarily driver assistance, bus analysis, and wiring systems, thereby supplementing IPETRONIK in its sectors drivetrains and thermal management.

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 43 operating units as of March 31, 2016.

INDUS CONSTRUCTION/INFRASTRUCTURE SEGMENT

GOOD START TO THE YEAR

The order situation again proved positive and stable in the construction sector in 2016. At the end of the first three months of 2016, segment sales were up 16.5% against the same quarter of the previous year. Virtually all of the portfolio companies in the segment contributed to this result. At EUR 5.9 million, the operating result is up 25% against the previous year's figure of EUR 4.7 million. At 10.7% (previous year: 9.9%) a good EBIT margin was achieved in the first quarter.

KEY FIGURES CONSTRUCTION/INFRASTRUCTURE (IN EUR MILLIONS)

DIFFERENCE
1.1.–
31.3.2016
1.1.–
31.3.2015
ABSOLUTE IN %
Sales 55.1 47.3 7.8 16.5
EBITDA 7.6 6.2 1.4 22.6
Depreciation
and
amortization -1.7 -1.5 -0.2 13.3
EBIT 5.9 4.7 1.2 25.5
EBIT margin
in %
10.7 9.9 0.8pp
Capital
expenditure
1.5 2.9 -1.4 -48.3
Employees 1,276 1,118 158.0 14.1

INDUS AUTOMOTIVE TECHNOLOGY SEGMENT

WEAKER DEMAND AT START OF YEAR

The companies in this segment were not quite able to match the sales achieved in the previous year. The 3.7% drop is primarily due to weaker demand (particularly in January), which affected several companies in this segment. The operating result (EBIT) fell from EUR 6.2 million in Q1 2015 to EUR 4.0 million. Since mid-2015, a serial supplier has been experiencing process problems, which have led to increased costs that have negatively impacted the margin. The segment's EBIT margin was therefore low at 4.7% in the first quarter of 2016. These problems are meanwhile under control.

KEY FIGURES AUTOMOTIVE TECHNOLOGY (IN EUR MILLIONS)

DIFFERENCE
1.1.–
31.3.2016
1.1.–
31.3.2015
ABSOLUTE IN %
Sales 85.9 89.2 -3.3 -3.7
EBITDA 8.6 10.7 -2.1 -19.6
Depreciation
and
amortization
-4.6 -4.5 -0.1 2.2
EBIT 4.0 6.2 -2.2 -35.5
EBIT margin
in %
4.7 7.0 -2.3pp
Capital
expenditure
4.3 5.8 -1.5 -25.9
Employees 3,383 3,228 155.0 4.8

INDUS ENGINEERING SEGMENT

ANOTHER SLIGHT IMPROVEMENT IN OPERATIONS

At EUR 66.9 million, segment sales almost reached the previous year's level (EUR 68.7 million). Earnings before interest and taxes (EBIT) improved to EUR 9.9 million. This was due to earnings contributions from the newest portfolio companies IEF-Werner and MBN as well as the generally positive order situation in the portfolio companies. The once again improved EBIT margin against the previous year to 14.8% is welcome news (previous year: 13.8%).

KEY FIGURES MEDICAL ENGINEERING/LIFE SCIENCE (IN EUR MILLIONS) DIFFERENCE 1.1.– 31.3.2016 1.1.– 31.3.2015 ABSOLUTE IN % Sales 37.0 31.5 5.5 17.5 EBITDA 5.5 5.7 -0.2 -3.5 Depreciation and amortization -1.6 -1.0 -0.6 60.0 EBIT 3.9 4.7 -0.8 -17.0 EBIT margin in % 10.5 14.9 -4.4pp – Capital expenditure 1.6 5.7 -4.1 -71.9 Employees 1,464 921 543.0 59.0

KEY FIGURES ENGINEERING (IN EUR MILLIONS)

DIFFERENCE
1.1.–
31.3.2016
1.1.–
31.3.2015
ABSOLUTE IN %
Sales 66.9 68.7 -1.8 -2.6
EBITDA 11.8 11.3 0.5 4.4
Depreciation
and
amortization
-1.9 -1.8 -0.1 5.6
EBIT 9.9 9.5 0.4 4.2
EBIT margin
in %
14.8 13.8 1.0pp
Capital
expenditure
1.2 2.5 -1.3 -52.0
Employees 1,554 1,368 186.0 13.6

INDUS MEDICAL ENGINEERING/LIFE SCIENCE SEGMENT

INTEGRATION COSTS EXERTING TEMPORARY PRESSURE ON MARGIN

Sales in the Medical Engineering/Life Science segment improved by 17.5% against the same quarter in the previous year. The result was impacted in particular by the integration of NEA, RAGUSE and the newly acquired OFA location in Glauchau. Two other portfolio companies also recorded organic sales expansions. However, earnings before interest and taxes (EBIT) came in below the previous year's figure at EUR 3.9 million (previous year: EUR 4.7 million). This is mainly due to the expenses associated with the integration of Glauchau. The EBIT margin of 10.5% was therefore significantly below the previous year's level. It will, however, improve in the course of the year.

INDUS METALS TECHNOLOGY SEGMENT

BACK ON A POSITIVE TRACK

The Metals Technology segment did record a slight drop in sales of 3.4% in the first quarter of 2016, but this drop was caused by one company and it is expected to be balanced out over the course of the year. Particularly pleasing is the operating result, which has seen an improvement of roughly 10%. With EBIT of EUR 7.8 million in Q1 2016 (previous year EUR 7.1 million), the measures to optimize quality and processes are proving effective. As a result, at 8.9% the margin is significantly up against the previous year's figure of 7.8%.

KEY FIGURES METALS TECHNOLOGY (IN EUR MILLIONS)

DIFFERENCE
1.1.–
31.3.2016
1.1.–
31.3.2015
ABSOLUTE IN %
Sales 88.1 91.2 -3.1 -3.4
EBITDA 11.1 10.1 1.0 9.9
Depreciation
and
amortization
-3.3 -3.0 -0.3 10.0
EBIT 7.8 7.1 0.7 9.9
EBIT margin
in %
8.9 7.8 1.1pp
Capital
expenditure
2.3 5.1 -2.8 -54.9
Employees 1,406 1,376 30.0 2.2

FINANCIAL POSITION

DIFFERENCE
Q1 2016 Q1 2015 ABSOLUTE IN %
Operating cash flow -6.3 3.5 -9.8 < -100
Interest -3.5 -3.9 0.4 -11
Cash flow from operating activities -9.8 -0.4 -9.4 > 100
Cash outflow for investments -10.9 -22.2 11.3 -51
Cash inflow from the disposal of assets 0.6 0.3 0.3 100
Cash flow from investing activities -10.3 -21.9 11.6 -53
Cash inflow from the assumption of debt 21.6 17.0 4.6 27
Cash outflow from the repayment of debt -33.6 -17.7 -15.9 90
Cash flow from financing activities -12.0 -0.7 -11.3 > 100
Net cash change in financial facilities -32.1 -23.0 -9.1 39
Changes in cash and cash equivalents
caused by currency exchange rates
-0.4 1.7 -2.1 < -100
Cash and cash equivalents at the beginning of the period 132.2 116.5 15.7 13
Cash and cash equivalents at the end of the period 99.7 95.2 4.5 5

CONSOLIDATED STATEMENT OF CASH FLOWS, CONDENSED (IN EUR MILLIONS)

STATEMENT OF CASH FLOWS: OPERATIVE CASH FLOW IN FIRST QUARTER WEAKER THAN LAST YEAR

Based on earnings after taxes of EUR 16.1 million (previous year: EUR 15.9 million) operative cash flow has dropped by EUR 9.8 million against the same period of the previous year in the first three months of 2016. Part of this decline can be traced to the cash inflow of EUR 9.9 million from upfront payments received in the same quarter of the previous year. Interest payments were on a par with the previous year in the first three months of 2016. Cash flow from operating activities therefore decreased by EUR 9.4 million to EUR -9.8 million. Cash flow from investment activities amounted to EUR -10.3 million as of the end of March 2016 (previous year: EUR - 21.9 million); this item includes the acquisition of COMPUTEC AG (EUR -0.5 million) as well as the acquisition of property, plant, and equipment, and intangible assets. Last year this item included the purchase of a production site in Glauchau by OFA Bamberg. Cash flow from financing activities was up EUR 11.3 million against the previous quarter, due to planned credit repayments being made from liquidity reserves. At EUR 99.7 million, cash and cash equivalents were considerably lower than at the end of 2015.

STATEMENT OF FINANCIAL POSITION: EQUITY RATIO ALMOST AT 43 %

DIFFERENCE
31.3.2016 31.12.2015 ABSOLUTE IN %
ASSETS
Noncurrent assets 823.4 827.9 -4.5 -0.5
Fixed assets 819.9 821.7 -1.8 -0.2
Accounts receivable and other current assets 3.5 6.2 -2.7 -43.5
Current assets 594.0 591.9 2.1 0.4
Inventories 294.0 281.6 12.4 4.4
Accounts receivable and other current assets 200.2 178.1 22.1 12.4
Cash and cash equivalents 99.8 132.2 -32.4 -24.5
Total assets 1,417.4 1,419.8 -2.4 -0.2
EQUITY AND LIABILITIES
Noncurrent liabilities 1,101.6 1,091.6 10.0 0.9
Equity 607.9 595.4 12.5 2.1
Debt 493.7 496.2 -2.5 -0.5
of which provisions 31.1 30.0 1.1 3.7
of which payables and income taxes 462.6 466.2 -3.6 -0.8
Current liabilities 315.8 328.2 -12.4 -3.8
of which provisions 59.1 62.3 -3.2 -5.1
of which liabilities 256.7 265.9 -9.2 -3.5
Total equity and liabilities 1,417.4 1,419.8 -2.4 -0.2

CONSOLIDATED STATEMENT OF FINANCIAL POSITION, CONDENSED (IN EUR MILLIONS)

At EUR 1,417.4 million, the INDUS Group's consolidated total assets remain virtually unchanged against December 31, 2015. The clear decrease in cash and cash equivalents (EUR -32.4 million) is in line with the increase in working capital, which is standard and well-established procedure for the first quarter. The increases in inventory (EUR +12.4 million) and receivables (EUR +22.1 million) are the main causes. The positive state of liquidity was also used to make more credit repayments in comparison with the previous year.

WORKING CAPITAL (IN EUR MILLIONS)

DIFFERENCE
31.3.2016 31.12.2015 ABSOLUTE IN %
Inventories 294.0 281.6 12.4 4.4
Trade accounts receivable 175.7 160.7 15.0 9.3
Trade accounts payable -56.7 -46.7 -10.0 21.4
Prepayments received -9.0 -9.1 0.1 -1.1
Construction contracts with credit balance -31.8 -30.8 -1.0 3.2
Working capital 372.2 355.7 16.5 4.6

With the allocation of retained earnings, the Group's equity has climbed to EUR 607.9 million. The equity ratio therefore increased from 41.9% as of December 31, 2015, to 42.9% as of March 31, 2016. Non-current debt remains virtually unchanged against the end of 2015. In current liabilities, there was a considerable drop in both liabilities (EUR -9.2 million) and provisions (EUR -3.2 million). At EUR 476.5 million, financial liabilities in the first quarter of 2016 decreased by EUR 12.0 million against the end of the year (December 31, 2015: EUR 488.5 million). Net debt in the Group rose to EUR 376.7 million due the drop in cash and cash equivalents.

NET FINANCIAL LIABILITIES (IN EUR MILLIONS)
DIFFERENCE
31.3.2016 31.12.2015 ABSOLUTE IN %
Noncurrent financial liabilities 374.4 376.9 -2.5 -0.7
Current financial liabilities 102.1 111.6 -9.5 -8.5
Cash and cash equivalents -99.8 -132.2 32.4 -24.5
Net financial liabilities 376.7 356.3 20.4 5.7

OPPORTUNITIES AND RISKS

Please refer to the 2015 annual report for INDUS Holding AG's opportunity and risk report. The company operates an efficient risk management system for the early detection, comprehensive analysis, and systematic handling of risks. The particulars of the risk management system and the significance of individual risks are explained in the annual report. 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.

OUTLOOK

It is INDUS' opinion that the rather muted economic outlook for 2016 has not changed over the past months. The German government currently anticipates GDP growth of 1.7% for 2016. Individual institutes may be more optimistic, but the overall sluggishness of the Asian economy, the weakness of the BRIC states, and the ongoing crisis in Russia all lead INDUS to expect merely slight growth. Nevertheless, the German economy is performing quite well again. The extremely weak start to the year and the bad economic data from China did cause turbulence on the markets, but this has now settled again. The low interest rates support the competitiveness of the exportoriented German economy, and low inflation and energy costs are supporting the positive consumer climate. The result is stable business for the INDUS segments: the Construction sector and Medical Technology are both profiting from the positive consumer climate and low interest rates, while the export-heavy industries of Automotive Technology, Engineering, and Metals Technology are showing strong demand internationally. INDUS has achieved slight growth in sales and a respectable operating result in the first three months. Despite two one-off effects in the Automotive Technology and Medical Engineering segments, the performance is in line with expectations.

INDUS therefore reiterates its sales forecasts, and aims to achieve sales of significantly more than EUR 1.4 billion and EBIT of around EUR 134 to 138 million (before the inclusion of the proportional sales and earnings contributions from the acquisitions made over the course of the year).

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME

FOR THE FIRST QUARTER OF 2016

STATEMENT OF INCOME AND
p. 15 ACCUMULATED EARNINGS

OF INCOME

CONSOLIDATED STATEMENT

  • CONSOLIDATED STATEMENT OF FINANCIAL POSITION p. 16
  • CONSOLIDATED STATEMENT OF EQUITY p. 17
  • CONSOLIDATED STATEMENT
  • OF CASH FLOWS NOTES p. 18 p. 19

p. 14

IN EUR '000 NOTES Q1 2016 Q1 2015
SALES 332,792 327,870
Other operating income 3,621 5,874
Own work capitalized 1,181 740
Overall performance 5,383 13,540
Cost of materials [4] -150,640 -165,440
Personnel expenses [5] -102,330 -94,613
Depreciation and amortization -13,259 -11,932
Other operating expenses [6] -46,513 -44,702
Income from shares accounted for using the equity method 216 119
Other financial results 62 41
OPERATING RESULT (EBIT) 30,513 31,497
Interest income 144 82
Interest expenses -5,914 -6,801
NET INTEREST [7] -5,770 -6,719
EARNINGS BEFORE TAXES (EBT) 24,743 24,778
Taxes -8,679 -8,923
EARNINGS AFTER TAXES 16,064 15,855
of which allocable to non-controlling shareholders 136 81
of which allocable to INDUS shareholders 15,928 15,774
Earnings per share undiluted and diluted in EUR [8] 0.65 0.65

STATEMENT OF INCOME AND ACCUMULATED EARNINGS

FOR THE FIRST QUARTER OF 2016

IN EUR '000 Q1 2016 Q1 2015
EARNINGS AFTER TAXES 16,064 15,855
Actuarial gains and losses -1,135 -4,350
Deferred taxes 336 1,253
Items not reclassified to profit or loss -799 -3,097
Currency translation adjustment -2,811 6,615
Change in the market values of derivative financial instruments (cash flow hedge) 14 543
Deferred taxes -2 -86
Items to be reclassified to profit or loss in future -2,799 7,072
OTHER INCOME -3,598 3,975
OVERALL RESULT 12,466 19,829
of which allocable to non-controlling shareholders 136 81
of which allocable to INDUS shareholders 12,330 19,748

Income and expenses of EUR -3,598,000 (previous year: EUR 3,975,000), recognized directly in equity under other income, include actuarial losses from pension plans and other similar obligations amounting to EUR -1,135,000 (previous year: EUR -4,350,000). This is primarily due to a drop in the interest rate for domestic obligations from 2.25% as of December 31, 2015, to 2.00% as of March 31, 2016.

Net income from currency translation of EUR 2,811,000 (previous year: EUR 6,615,000) is derived from the translated financial statements of consolidated international subsidiaries. The change in fair values of derivative financial instruments in the amount of EUR 14,000 (previous year: EUR 543,000) was chiefly the result of interest rate swaps transacted by the holding company in order to hedge interest rate movements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

IN EUR '000 NOTES MARCH 31, 2016 DEC. 31, 2015
ASSETS
Goodwill 395,270 394,802
Other intangible assets [9] 57,915 58,828
Property, plant, and equipment [10] 333,589 334,846
Investment property 5,544 5,924
Financial assets 19,369 19,272
Shares accounted for using the equity method 8,253 8,036
Other noncurrent assets 1,169 3,484
Deferred taxes 2,376 2,671
Noncurrent assets 823,485 827,863
Inventories [11] 294,008 281,612
Accounts receivable [12] 175,749 160,744
Other current assets 18,532 14,952
Current income taxes 5,907 2,412
Cash and cash equivalents 99,752 132,195
Current assets 593,948 591,915
TOTAL ASSETS 1,417,433 1,419,778
EQUITY AND LIABILITIES
Subscribed capital 63,571 63,571
Capital reserve 239,833 239,833
Other reserves 301,705 289,375
Equity held by INDUS shareholders 605,109 592,779
Non-controlling interests in the equity 2,787 2,651
Equity 607,896 595,430
Provisions for pensions 29,366 28,055
Other noncurrent provisions 1,716 1,917
Noncurrent financial liabilities 374,426 376,935
Other noncurrent liabilities 49,954 51,772
Deferred taxes 38,213 37,449
Noncurrent liabilities 493,675 496,128
Other current provisions 59,118 62,263
Current financial liabilities 102,125 111,616
Trade accounts payable 56,655 46,748
Other current liabilities 90,818 99,064
Current income taxes 7,146 8,529
Current liabilities 315,862 328,220
TOTAL EQUITY AND LIABILITIES 1,417,433 1,419,778

CONSOLIDATED STATEMENT OF EQUITY

Interests held by non-controlling shareholders essentially consist of the non-controlling interests in WEIGAND Bau GmbH and subsidiaries of the ROLKO Group. Non-controlling interests in limited partnerships and limited liability companies for which, at the time of purchase, the economic ownership of the relevant non-controlling interests had already been passed on under reciprocal option agreements are shown under other liabilities.

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, 2014 63,571 239,833 252,270 -7,759 547,915 1,957 549,872
Income after taxes 15,774 15,774 81 15,854
Other income 3,975 3,975 3,975
Overall result 15,774 3,975 19,749 81 19,829
BALANCE MARCH 31, 2015 63,571 239,833 268,044 -3,784 567,664 2,038 569,701
BALANCE DEC. 31, 2015 63,571 239,833 290,861 -1,486 592,779 2,651 595,430
Income after taxes 15,928 15,928 136 16,064
Other income -3,598 -3,598 -3,598
Overall result 15,928 -3,598 12,330 136 12,466
BALANCE MARCH 31, 2016 63,571 239,833 306,789 -5,084 605,109 2,787 607,896

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE FIRST QUARTER OF 2016

IN EUR '000 Q1 2016 Q1 2015
Income after taxes 16,064 15,855
Depreciation/write-ups of noncurrent assets 13,259 11,932
Taxes 8,679 8,923
Net interest 5,770 6,719
Other non-cash transactions -3,344 1,582
Changes in provisions -2,242 9,267
Increase (-)/decrease (+) in inventories, trade accounts receivable, and other assets -31,360 -60,266
Increase (+)/decrease (-) in trade accounts payable and other liabilities -783 20,757
Income taxes received/paid -12,351 -11,307
Operating cash flow -6,308 3,462
Interest paid -3,598 -3,907
Interest received 144 82
Cash flow from operating activities -9,762 -363
Cash outflow from investments in
property, plant, and equipment, and in intangible assets -9,662 -21,626
financial assets and shares accounted for using the equity method -719 -609
shares in fully consolidated companies -555 0
Cash inflow from the disposal of other assets 622 382
Cash flow from investing activities -10,314 -21,853
Cash inflow from the assumption of debt 21,583 17,000
Cash outflow from the repayment of debt -33,583 -17,744
Cash flow from financing activities -12,000 -744
Net cash change in financial facilities -32,076 -22,960
Changes in cash and cash equivalents caused by currency exchange rates -367 1,675
Cash and cash equivalents at the beginning of the period 132,195 116,491
Cash and cash equivalents at the end of the period 99,752 95,206

NOTES BASIC PRINCIPLES

19 CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes

BASIC PRINCIPLES [1] GENERAL INFORMATION [2] CHANGES IN ACCOUNTING GUIDELINES [3] SCOPE OF CONSOLIDATION

NOTES TO THE STATEMENT OF INCOME NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION OTHER DISCLOSURES

[1] GENERAL INFORMATION

INDUS Holding AG, based in Bergisch Gladbach, Germany, prepared its consolidated financial statements for the period from January 1 to March 31, 2016, in accordance with International Financial Reporting Standards (IFRS) and interpretations of these standards by the International Financial Reporting Standards Interpretations Committee (IFRS IC) 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 2015 fiscal year. They are described there in detail. Because this interim 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 financial position and financial performance. The results achieved in the first quarter of the 2016 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 2016 have been implemented in these interim financial statements.

The new standards do not affect in any way the presentation of the financial position and financial performance of INDUS Holding AG in the consolidated financial statements.

[3] SCOPE OF CONSOLIDATION

The consolidated financial statements include all the essential subsidiaries, in which INDUS Group is able to directly or indirectly control the financial and business policies of said subsidiaries. A parent company controls a subsidiary when the parent is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. 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.

NOTES TO THE STATEMENT OF INCOME

[4] COST OF MATERIALS

IN EUR '000 Q1 2016 Q1 2015
Raw materials and goods for resale -129,013 -136,980
Purchased services -21,627 -28,460
Total -150,640 -165,440

[5] PERSONNEL EXPENSES

IN EUR '000 Q1 2016 Q1 2015
Wages and salaries -86,677 -80,435
Social security -14,565 -13,406
Pensions -1,088 -772
Total -102,330 -94,613

21 CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes

BASIC PRINCIPLES

[1] GENERAL INFORMATION [2] CHANGES IN ACCOUNTING GUIDELINES

[3] SCOPE OF CONSOLIDATION

NOTES TO THE STATEMENT

OF INCOME [4] COST OF MATERIALS

[5] PERSONNEL EXPENSES

[6] OTHER OPERATING EXPENSES

[7] NET INTEREST

[8] EARNINGS PER SHARE

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION OTHER DISCLOSURES

[6] OTHER OPERATING EXPENSES

IN EUR '000 Q1 2016 Q1 2015
Selling expenses -16,826 -17,352
Operating expenses -17,070 -15,767
Administrative expenses -9,909 -8,830
Other expenses -2,708 -2,753
Total -46,513 -44,702

[7] NET INTEREST

IN EUR '000 Q1 2016 Q1 2015
Interest and similar income 144 82
Interest and similar expenses -4,078 -4,312
Interest from operations -3,934 -4,230
Other: Market value of interest-rate swaps 21 60
Other: Non-controlling interests -1,857 -2,549
Other interest -1,836 -2,489
Total -5,770 -6,719

[8] EARNINGS PER SHARE

Earnings per share (in EUR) 0.65 0.65
Weighted average shares outstanding (in thousands) 24,451 24,451
Earnings attributable to INDUS shareholders 15,928 15,774
IN EUR '000 Q1 2016 Q1 2015

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

[9] OTHER INTANGIBLE ASSETS

IN EUR '000 MARCH 31, 2016 DEC. 31, 2015
Capitalized development costs 11,379 11,190
Property rights, concessions, and other intangible assets 46,536 47,638
Total 57,915 58,828

[10] PROPERTY, PLANT, AND EQUIPMENT

IN EUR '000 MARCH 31, 2016 DEC. 31, 2015
Land and buildings 178,213 179,984
Plant and machinery 95,447 96,918
Other equipment, factory, and office equipment 48,409 47,732
Advance payments and work in process 11,520 10,212
Total 333,589 334,846

[11] INVENTORIES

IN EUR '000 MARCH 31, 2016 DEC. 31, 2015
Raw materials and supplies 92,636 89,815
Unfinished goods 85,822 83,939
Finished goods and goods for resale 95,692 91,352
Prepayments for inventories 19,858 16,506
Total 294,008 281,612

[12] ACCOUNTS RECEIVABLE

IN EUR '000 MARCH 31, 2016 DEC. 31, 2015
Accounts receivable from customers 160,156 147,480
Accounts receivable from construction contracts 9,174 5,585
Accounts receivable from associated companies 6,419 7,679
Total 175,749 160,744

23 CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes

BASIC PRINCIPLES

NOTES TO THE STATEMENT

OF INCOME [4] COST OF MATERIALS

[5] PERSONNEL EXPENSES

[6] OTHER OPERATING EXPENSES [7] NET INTEREST

[8] EARNINGS PER SHARE

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION [9] OTHER INTANGIBLE ASSETS [10] PROPERTY, PLANT, AND EQUIPMENT [11] INVENTORIES [12] ACCOUNTS RECEIVABLE

OTHER DISCLOSURES

OTHER DISCLOSURES

[13] SEGMENT REPORTING

SEGMENT INFORMATION BY OPERATION FOR THE FIRST QUARTER OF 2016

SEGMENT INFORMATION IN ACCORDANCE WITH IFRS 8 (IN EUR '000)

CONSTRUCTION/
INFRASTRUC
TURE
AUTOMOTIVE
TECHNOLOGY
ENGINEERING MEDICAL
ENGINEERING/
LIFE SCIENCE
METALS
TECHNOLOGY
TOTAL
SEGMENTS
RECONCILIA
TION
CONSOLIDATED
FINANCIAL
STATEMENTS
Q1 2016
Sales with external third parties 55,052 85,867 66,889 37,013 88,101 332,922 -130 332,792
Sales with Group companies 4,308 9,519 8,994 3,631 8,550 35,002 -35,002 0
Sales 59,360 95,386 75,883 40,644 96,651 367,924 -35,132 332,792
Segment earnings (EBIT) 5,925 3,971 9,911 3,918 7,777 31,502 -989 30,513
Earnings from equity valuation 0 147 69 0 0 216 0 216
Depreciation and amortization -1,636 -4,607 -1,942 -1,606 -3,271 -13,062 -197 -13,259
Segment EBITDA 7,561 8,578 11,853 5,524 11,048 44,564 -792 43,772
Capital expenditure 1,494 4,395 1,149 1,597 2,301 10,936 0 10,936
of which company acquisitions 0 0 555 0 0 555 0 555
Q1 2015
Sales with external third parties
47,344 89,245 68,712 31,450 91,169 327,920 -50 327,870
Sales with Group companies 2,059 9,647 10,612 1,828 7,749 31,895 -31,895 0
Sales 49,403 98,892 79,324 33,278 98,918 359,815 -31,945 327,870
Segment earnings (EBIT) 4,695 6,209 9,513 4,707 7,145 32,269 -772 31,497
Earnings from equity valuation 0 119 0 0 0 119 0 119
Depreciation and amortization -1,489 -4,515 -1,771 -1,033 -2,969 -11,777 -155 -13,259
Segment EBITDA 6,184 10,724 11,284 5,740 10,114 44,046 -617 43,429
Capital expenditure 2,879 5,782 2,497 5,653 5,112 21,923 312 22,235

25 CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes

BASIC PRINCIPLES NOTES TO THE STATEMENT OF INCOME NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

OTHER DISCLOSURES

[13] SEGMENT REPORTING [14] INFORMATION ON THE SIGNIFICANCE OF FINANCIAL INSTRUMENTS [15] RELATED PARTY DISCLOSURES [16] APPROVAL FOR PUBLICATION

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

RECONCILIATION (IN EUR '000)
Q1 2016 Q1 2015
Segment earnings (EBIT) 31,502 32,269
Areas not allocated, incl. holding company -1,066 -808
Consolidations 77 36
Net interest -5,770 -6,719
Earnings before taxes 24,743 24,778

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. Due to our varied foreign activities, a further breakdown by country is not meaningful, as no country other than 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 2016
Sales revenue with external third parties 332,792 170,151 77,630 85,011
March 31, 2015
Noncurrent assets, less deferred taxes and financial instruments 800,571 684,665 40,378 75,528
Q1 2015
Sales revenue with external third parties 327,870 166,745 67,506 93,619
Dec. 31, 2015
Noncurrent assets, less deferred taxes and financial instruments 802,436 685,471 40,947 76,018

[14] INFORMATION ON THE SIGNIFICANCE OF FINANCIAL INSTRUMENTS

The table below shows the carrying amounts 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.

FINANCIAL INSTRUMENTS AS OF MARCH 31, 2016 (IN EUR '000)
BALANCE
SHEET VALUE
IFRS 7
NOT APPLICABLE
FINANCIAL
INSTRUMENTS
IFRS 7
MEASURED AT
FAIR VALUE
MEASURED AT
AMORTIZED COST
Financial assets 19,369 19,369 19,369
Cash and cash equivalents 99,752 99,752 99,752
Accounts receivable 175,749 9,174 166,575 166,575
Other assets 19,701 1,496 18,205 9 18,196
Financial Instruments: ASSETS 314,571 10,670 303,901 9 303,892
Financial liabilities 476,551 476,551 476,551
Trade accounts payable 56,655 56,655 56,655
Other liabilities 140,772 48,400 92,372 52,322 40,050
Financial Instruments: LIABILITIES 673,978 48,400 625,578 52,322 573,256

FINANCIAL INSTRUMENTS AS OF DEC. 31, 2015 (IN EUR '000)

BALANCE
SHEET VALUE
IFRS 7
NOT APPLICABLE
FINANCIAL
INSTRUMENTS
IFRS 7
MEASURED AT
FAIR VALUE
MEASURED AT
AMORTIZED
COST
Financial assets 19,272 19,272 19,272
Cash and cash equivalents 132,195 132,195 132,195
Accounts receivable 160,744 5,585 155,159 155,159
Other assets 18,436 3,045 15,391 461 14,930
Financial Instruments: ASSETS 330,647 8,630 322,017 461 321,556
Financial liabilities 488,551 488,551 488,551
Trade accounts payable 46,748 46,748 46,748
Other liabilities 150,836 58,695 92,141 51,688 40,453
Financial Instruments: LIABILITIES 686,135 58,695 627,440 51,688 575,752

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.

31.3.2016 31.12.2015
9 461
303,589 321,246
303 310
303,901 322,017
52,322 51,688
573,256 587,287
625,578 638,975

27 CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes

BASIC PRINCIPLES NOTES TO THE STATEMENT OF INCOME NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

OTHER DISCLOSURES

[13] SEGMENT REPORTING [14] INFORMATION ON THE SIGNIFICANCE

OF FINANCIAL INSTRUMENTS [15] RELATED PARTY DISCLOSURES [16] APPROVAL FOR PUBLICATION

[15] RELATED PARTY DISCLOSURES

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 2015 annual financial statements.

[16] APPROVAL FOR PUBLICATION

The Board of Management of INDUS Holding AG approved this IFRS interim financial statement for publication on May 17, 2016.

Bergisch Gladbach, May 17, 2016

INDUS Holding AG

The Board of Management

Jürgen Abromeit Dr. Johannes Schmidt Rudolf Weichert

CONTACT

INDUS HOLDING AG

Kölner Straße 32 51429 Bergisch Gladbach Germany

P.O. Box 10 03 53 51403 Bergisch Gladbach Germany

Phone: +49 (0)2204/40 00-0 Fax: +49 (0)2204/40 00-20 E-mail: [email protected]

www.indus.de

FINANCIAL CALENDAR

JUNE 9, 2016 Annual Shareholders' Meeting 2016, Cologne
AUGUST 16, 2016 Interim report H1 2016
NOVEMBER 15, 2016 Interim report on the first three quarters 2016

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]

DATE OF PUBLISHING

May 18, 2016

PUBLISHER INDUS Holding AG, Bergisch Gladbach

CONCEPT/DESIGN Berichtsmanufaktur GmbH, Hamburg

PHOTOS Cover: ASS Page 2/3: iStock

This interim report is also available in german. Both the english and the german versions of the report can be downloaded from the internet at www.indus.de under Financial Reports & Presentations. 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 INDUSHolding 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 report. Assumptions and estimates made in this interim report will not be updated.

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