STS Group AG — Investor Presentation 2019

Apr 4, 2019

Earnings Call / Audited consolidated figures 2018 April 4, 2019

Andreas Becker and

Dr. Ulrich Hauck will

present STS Group AG

Financial Figures 2018.

Presenter

Andreas Becker CEO

Andreas Becker has been Chief Executive Officer (CEO) of the STS Group since its foundation in 2017. His areas of responsibility include in particular sales, purchasing, research & development and human resources. In addition, the companies MCR and STS China report directly to him.

Before Andreas Becker lead STS Acoustics as CEO (2013). Between 1996 and 2013 he held various management positions at the Autoneum Group, a global automotive supplier like STS Group. From 2010 to 2013, he was also responsible for the management in Italy as well as the Truck Business Worldwide division.

Ulrich Hauck took over the CFO role at STS Group April 1, 2019. His areas of responsibility comprise in particular controlling, accounting, treasury, taxes and IT.

Prior to joining STS Group, Ulrich Hauck held the positions of Group CFO at Schaeffler, Corporate Senior Vice President at Bayer AG, heading global accounting and controlling of Bayer and Vice President at Rheinmetall. He started his career as CPA and tax consultant at Deloitte.

History

Long history to become one of the leading global Tier 1 truck suppliers for soft and hard trim.

Till 2013 part of Autoneum (former Rieter Group) as Truck Division and Italian Business Unit.

Revenues & Adj. EBITDA

STS Group achieves guidance 2018.

Key Messages:

• u Preliminary figures released February 27, 2019 confirmed
• u Revenue rose by around 29% to 401.2 mEUR (prior year: 310.0 mEUR).
• u Increase in adjusted EBITDA of around 67% to 23.7 mEUR (prior year: 14.2 mEUR).
• u Adjustments (11.9 mEUR) refer to costs for IPO and integration costs
• u Integration of acquired units completed in 2018.

Revenues & Adj. EBITDA per Business Unit

Top line growth essentially attributable to acquisitions carried out in financial year 2017.

3.0

0.7

-0.5

23.7

Conso 2018

BU China

2017 BU Plastics BU Materials

10.3

-4.0

Adj. EBITDA in mEUR

BU Acoustics

• u Revenue decrease of BU Acoustics primarily due to lower volumes of Italian LCV/LV market
• u Growth of BUs Plastics and Materials due to full year effect of businesses acquired in 2017
• u Organically, BU Plastics decreased due to planned phase out of truck project

• u Organic growth of BU China amounts to +2.4%

• u BU Plastics and BU China with major contributions to growth of Adj. EBITDA, also due to numerous efficiency measures

• u Decline of Adj. EBITDA of BU Acoustics due to lower topline and ramp-up costs of Polish plant

14.2

Revenues & Adj. EBITDA 1HY vs. 2HY 2018

Second half year 2018 weaker than first half.

• u Second half year with lower topline than first six months due to lower production in Europe due to holiday season (>10% less working days)
• u Phase out of truck project of BU Plastics
• u Decline of European Passenger Car market in the second half

Adj. EBITDA in mEUR

• u Adjusted EBITDA decreased in second half of the year, mainly due to lower revenues
• u BU results negatively affected by true up of HQ cost allocation in fourth quarter

Net Result & Equity

in Integ. 23.7 Adj EBITDA -3.8 IPO Interest/Tax -7.9 11.9 EBITDA -13.2 Deprec. -1.3 EBIT -3.5 -4.8 Net Result Net Result y.e. 2018 in mEUR Equity in mEUR 5.9% 3.0% -0.3% -1.2% u EBITDA adjustments for IPO costs and integration of 2017 acquired activities u Depreciation in line with CAPEX, which refers mainly to investments for maintenance, new projects and strategic growth u Exluding adjustments net result would be positive in 2018 u Strong increase of equity due to IPO u Solid equity level with ard. 30% 60.9 Cap Increase 2017 y.e. 26.5 -4.9 Result 2018 82.5 2018 y.e. 22.1% 30.1%

Negative net result 2018 but increase of equitylevel.

Net Debt & Liquidity

Solid financial

position.

Drivers for potential sales growth Drivers for additional profit

Expanding in China:

• ü New HQ and R&D center in Wuxi
• ü Third plant in Shyian
• o Additional technology with introduction of injection molding

Improving footprint/cost structure in Europe:

• ü New plant in best cost country
• o Optimization of actual footprint
• o Improving cost structure (e.g. BU Acoustics)

Entering the US Market:

ü First order from premium NAFTA truck brand

• o New plant follows business award
• o Footprint by acquisition or greenfield

Benefitting from system approach & new technologies:

• ü Development of new product systems & innovations
• ü First EV order (New customers & new applications)
• o Expansion of new products & technologies

Process Innovation:

• o Increased automation in production (ongoing)
• o Operation excellence within all plants

2019 & mid-term Guidance

Attractive future growth perspectives.

• u Market environment in the automotive industry will continue to be challenging
• u Revenue expected to remain at previous year's level

u Adjusted EBITDA at least at previous year's level (2018: 23.7 mEUR), increase of EBITDA by ≥ 100% compared to previous year (2018: 11.9 mEUR)

u Attractive future growth perspectives.

u Target revenue ≥ 500 mEUR

u Target EBITDA margin ≥ 10%

Key Take Aways

Publication quarterly statement on May 15, 2019

Financial Calendar 2019

Conferences and relevant publications in 2019.

16/17 April 2019	CF&B 14th Smallcap Event, Paris
7/8 May 2019	MKK Munich Capital Market Conference, Munich
15 May 2019	Publication Quarterly Statement (call-date Q1)
17 May 2019	Annual General Meeting
28 May 2019	MainFirst SMID CAP Event, Frankfurt/Main
4 June 2019	Prior Capital Market Conference, Frankfurt/Main
27 June 2019	Market Capital Day, Frankfurt/Main
7 August 2019	Publication half-yearly financial report
2/3 September 2019	Autumn Conference, Frankfurt/Main
11 September 2019	ZKK Zurich Capital Market Conference, Zurich
6 November 2019	Publication Quarterly Statement (call-date Q3)
25/27 November 2019	German Equity Forum 2019, Frankfurt/Main

Thank you for your attention

Contact Us

Stefan Hummel Head of Investor Relations ir@sts.group