technotrans SE

Earnings Release • Nov 6, 2018

Presentation of the results for the 3. quarter 2018

November 6, 2018

FINANCIAL YEAR 2018

Highlights Q3 2018

› Revenue for year in progress (9M) grows to € 162.7 million

• › EBITDA reaches € 17.4 million (EBITDA margin: 10.7 percent)
• › EBIT rises to € 13.6 million (EBIT margin: 8.4 percent)

› Earnings per share € 1.42

› Outlook: Board of Management remains confident on attainment of annual targets

Business performance / key figures Q3 2018/2017

in million €	Q3 2017	Q3 2018	Δ
Revenue	52.3	55.4	6%
EBITDA	5.7	5.8	2%
EBIT	4.4	4.5	2%
EBIT-margin (%)	8.4%	8.1%
EBT	4.3	4.4	2%
Net profit for period	3.4	3.4	0%
Earnings per share (€)	0.48	0.49

	Dec. 31, 2017	Sep 30, 2018
Equity	69.8	72.6	4%
Equity ratio (%)	55.7%	53.6%
Net debt	9.3	17.6	89%
Ø employees (FTE)	1,132	1,225	8%

• › Revenue increases by 6% to € 55.4 million
• › EBIT rises to € 4.5 million, EBIT margin reaches 8.1 %

The financial year 2018 by quarters

Q1 Q2 Q3 Q4

TURNOVER AND EBIT BY QUARTERS

Revenue 9M 2017/2018:

yoy revenue + 4.7 percent

EBIT 9M 2017/2018:

€ 13.6 million (previous year € 12.8 million), EBIT margin reached 8.4 percent (previous year 8.3 percent)

The financial year 2018 by segments

EBIT-development 2017/2018 quarters (in million €)

TURNOVER AND EBIT BY SEGMENTS

Technology (72.7 %)

• revenue growth +5.2 % (yoy) / +3.2 % (qoq)
• rate of return for the segment = 5.5 % (previous year: 5.3%)

Services (27.3 %)

• revenue growth 3.3 % (yoy) / 13.7 % (qoq)
• rate of return for the segment = 15.9 % (previous year 15.9%)

Key figues at a glance 9M 2017/2018

Earning figures (in million €)	9M 2017	9M 2018	Δ in %
Revenue	155.5	162.7	4.7
EBITDA	16.6	17.4	5.0
EBIT	12.8	13.6	5.9
EBIT-margin	8.3 %	8.4 %
Net profit for the period *	9.4	9.8	4.2
EPS	1.36	1.42	4.2

Balance sheet figures (in million €)	31.12. 2017	30.09. 2018	Δ in %
Balance sheet total	125.3	135.5	8.1
Equity	69.8	72.6	4.1
Equity ratio	55.7 %	53.6 %
Net debt	9.3	17.6	89.3
Cash and cash equivalents	14.8	13.1	-11.4

* Profit attributable to technotrans SE shareholders

Cashflow key figures (in million €)	9M 2017	9M 2018	Δ in %
Net Cash from operating activities	15.7	17.4	10.5
CF from investing activities	-2.2	-6.6
CF from financing activities	-7.9	-0.3
Free Cash Flow	7.5	-1.3

Other key	30.09.	30.09.	Δ
figures	2017	2018	in %
Employees FTE (av.)	1,122	1,225

BUSINESS MODEL

The group of companies

• Leading system supplier with the core competence of liquid technology
• Customer-specific solutions for temperature control/cooling, filtration as well as pumping and spraying technology for/with fluids
• Extensive range of individual services world-wide

The business model / reporting segments

Technology (1,065 employees)

• Established system and development partner in mechanical and plant engineering
• World market leader in print
• Full-liner for cooling and temperature control solutions in the laser industry
• Innovative solutions in the plastics processing industry
• Innovation partner for new technological applications in

Services (395 employees)

• High service component assures customer satisfaction in all markets
• Steadily growing installed base safeguards future revenue and profit
• Virtually no cyclical business

Segment Technology - Markets

Printing industry Laser industry Stamping and

forming technology

Tooling industry

E-mobility Medical and scanner technology

Plastic processing industry

Printing industry

• For all printing presses Sheet-fed offset, digital printing, web offset, newspaper printing, flexographic printing
• Applications from dampening solution preparation, cooling/temperature control of rollers, print heads, inks, process air, electronics, central water cooling, filtration, ink supply, varnish and water preparation to spray dampening systems
• Characterised by practical details, coordinated components, innovation leader

Laser Industry

• Cooling systems for laser applications Diode, fibre and CO² lasers (full-liner in laser cooling)
• Meeting specialised requirements Energy-efficient, resource-saving chillers
• Broad range Performance ranging from 0.3 kW for diode lasers to 300 kW for high cooling performances for CO² lasers

Stamping and forming technology

• Lubrication systems Blanks, coils, automatic punching presses and small applications
• New generation Precise, economical oil coating without interference from spray mist
• Customer-specific Highly flexible, easily adapted solution for contactless, exact application of oils and aqueous solutions

Tooling industry

Peripherals for machine tools Performance cooling, precision cooling all the way to intelligent reference-led temperature control

Cooling for

main and counter spindle motors, torque motors, linear drives, electrical control cabinets and machine beds

Characterised by

high reliability and control precision, compact installation area, ease of operation, configurable for all requirements

Electric mobility

• Road and rail vehicles Development and volume production of cooling systems for mobile lithium-ion batteries
• Stationary energy storage devices and quick-charging stations

Conception of customer-specific cooling systems for stationary lithium-ion batteries

High power charging (HPC) Active and passive cooling with cooling modules for charging leads and quickcharging points

Medical and scanner technology

Reliable cooling and temperature control devices for modern imaging diagnostics in medicine (CT, MRT) and lab technology

Tailormade solutions

for baggage scanners in airport security to enable frictionless operations and smooth processes

Based on

modularity, flexibility, reliability and newly developed components from leading manufacturers

Plastics processing industry

For all areas

Injection moulding, extrusion, pressing, blow moulding, casting, foaming, coating, thermoforming, rubber

• Custom solutions as the standard with leading, innovative technology
• Competitive edge thanks to maximum energy efficiency with perfectly coordinated temperature control and cooling

Segment Services - Products

The services offered by technotrans goes far beyond the repair and maintenance of its equipment and system solutions

... on a worldwide scale!

Customer Service Support

Spare parts service

Fullservice for technical documentation (gds)

In-house Repair On-Site Project Management

Technical documentation

• Reducing costs in technical authoring
• Raising efficiency through use of an editorial system
• Increasing quality with terminology management and controlled language
• Legal certainty and customer satisfaction optimised by professionally compiled documentation, specialist translations, consultancy and training

Worldwide presence / 20 Sites

STRATEGY AND OUTLOOK

Long-term growth strategy

Our growth potential comes from tapping into new industries and applications, expanding our international customer base and capitalising on cross-selling effects in the various areas of business. Developing new products through technological innovation and providing customer-specific solutions that are based on standard platforms are also part of our strategy. Our growth-oriented measures in addition include the acquisition of complementary business areas, technologies or products.

Guidance and Outlook for 2018

Also for 2018 technotrans is aiming to grow faster than the market

	2017	Outlook 2018
Revenue	€ 205.1 million	€ 212 - 220 million
Technology	€ 147.6 million	€ 153 - 159 million
Services	€ 57.5 million	€ 59 - 61 million
EBIT	€ 17.4 million 8.5%	€ 18 - 20 million 8.5% - 9.0%

Business development since 2009

Growing profitability

technotrans in figures

Net debt

Consolidated Balance Sheet as of 30.09.2018

ASSETS	30.09.2018	31.12.2017
	T€	T€
Non-current assets
Property, plant and equipment	26,901	25,477
Goodw ill	23,144	23,144
Intangible assets	7,492	6,888
Other financial assets	209	231
Deferred tax	2,018	2,034
	59,764	57,774
Current assets
Inventories	29,572	26,589
Trade receivables	29,474	24,182
Income tax receivable	84	83
Other financial assets	1,413	596
Other assets	2,044	1,285
Cash and cash equivalents	13,112	14,798
	75,699	67,533
Total assets	135,463	125,307

EQUITY AND LIABILITIES	30.09.2018	31.12.2017
	T€	T€
Equity
Issued capital	6,908	6,908
Capital reserve	19,097	19,097
Retained earnings	43,286	37,797
Other reserves	-6,458	-6,440
Net profit for the period	9,784	12,191
Total equity attributable to technotrans SE shareholders	72,617	69,553
Non-controlling interests in equity	0	197
	72,617	69,750
Non-current liabilities
Borrow ings	17,746	19,187
Provisions	1,239	1,206
Other financial liabilities	1,066	1,073
Deferred tax	1,630	1,833
	21,681	23,299
Current liabilities
Borrow ings	11,885	3,837
Trade payables	7,912	6,062
Prepayments received	3,892	5,805
Provisions	10,224	9,769
Income tax payable	3,189	3,203
Other financial liabilities	1,031	1,285
Other liabilities	3,032	2,297
	41,165	32,258
Total equity and liabilities	135,463	125,307

1.1.-30.9. 1.1.-30.6.

Consolidated income statement as of 30.09.2018

	2018	2017
	T€	T€
Revenue	162,743	155,455
of w hich Technology	118,313	112,424
of w hich Services	44,430	43,031
Cost of sales	-111,023	-103,666
Gross profit	51,720	51,789
Distribution costs	-19,488	-19,653
Administrative expenses	-14,493	-13,675
Development costs	-5,786	-5,614
Other operating income	2,752	2,309
Other operating expenses	-1,115	-2,321
Earnings before interest and taxes (EBIT)	13,590	12,835
Financial income	5	0
Financial charges	-318	-432
Financial result	-313	-432
Profit before tax	13,277	12,403
Income tax expense	-3,493	-2,947
Net profit for period	9,784	9,456
Earnings per share (€)
basic/diluted	1.42	1.36

Consolidated cash flow statement as of 30.09.2018

30.09.2018 30.09.2017

	T€	T€
Cash flow from operating activities
Net income for period	9,784	9,456
Adjustments for:
Depreciation and amortisation	3,803	3,738
Income tax expense	3,492	2,947
Gain (-)/loss (+) on the disposal of property, plant and equipment	-59	-223
Foreign exchange losses (+) / gains (-)	37	-637
Financial result	313	432
Cash flow from operating activities before working capital changes	17,370	15,713
Change in:
Inventories	-2,062	-909
Receivables and other assets	-6,864	-5,955
Other non-current assets	37	424
Liabilities and prepayments received	257	520
Provisions	394	2,189
Cash from operating activities	9,132	11,982
Interest income	5	0
Interest paid	-318	-432
Income taxes paid / income tax rebates	-3,541	-1,864
Net cash from operating activities	5,278	9,686

	T€	T€
Cash flow from investing activities
Cash payments for investments in property, plant and equipment and in intangible assets	-4,796	-2,601
Cash inflow /outflow for the acquisition of consolidated companies	-2,069	0
Proceeds from the sale of property, plant and equipment	254	408
Net cash used for investing activities	-6,611	-2,193
Cash flow from financing activities
Cash receipts from the raising of short-term and long-term loans	9,500	0
Cash payments for purchase of non-controlling interests	-820	0
Cash payments from the repayment of loans	-2,895	-4,107
Distributions to investors	-6,079	-3,799
Net cash used in financing activities	-294	-7,906
Exchange and consolidation-related changes in cash and cash equivalents	-59	0
Change in cash and cash equivalents	-1,627	-413
Cash and cash equivalents at start of period	14,798	23,929
Consolidation-related changes in cash and cash equivalents	0	0
Cash and cash equivalents at end of period	13,171	23,516

30.09.2018 30.09.2017

Overview of technotrans shareholder base

	KEY DATA SHARE
	ISIN/Code	DE000A0XYA7/AOXGA
	establishment/IPO	1970/1998
	financial year	01.01. – 31.12.
	share capital	6,907,665.00
	number of shares	6,907,665
	stock markets	XETRA, Frankfurt
	designated sponsors	Bankhaus Lampe, equinet Bank, ODDO SEYDLER
	index	Prime Standard

• Freefloat
• Gerlin NV
• Ojectif Small Cap
• Midlin NV
• LOYS Investment S.A.
• Union Investment Privatfonds GmbH
• Allianz Global Investors
• Universal-Investment GmbH

› market capitalisation: as of November 2, 2018 EUR 238 million

Share performance and analysts´ estimates

Share performance January 1, 2017 – November 2, 2018 Research

Dividend

2018-09-07	Bankhaus Lampe buy	Gordon Schönell price target € 50.00
2018-08-09	equinet Bank accumulate	Winfried Becker price target € 43.00
2018-08-08	Warburg Research buy	Eggert Kuls price target € 51.20
2018-08-09	Hauck + Aufhäuser buy	Henning Breiter price target € 51.00
2018-08-08	HSBC hold	Richard Schramm price target € 39.00
2018-09-26	ODDO BHF neutral	Thomas Effler price target € 38.00
Financial Calendar

2018-11-26/27	Deutsches Eigenkapitalforum, Frankfurt
2019-03-12	Annual Report 2018

Management

Dirk Engel

• Chief Financial Officer, Spokesman of the Board (DOB 1967)
• Head of finance and accountancy since 2004, Board of Management member since 2006
• Responsible for Finance & Administration

Peter Hirsch

• Member of the Board (DOB. 1972)
• Joined technotrans in 2013, at last Managing Director of the subsidiary Termotek in Baden-Baden, since July 2018 Member of the Board
• Responsible for Technology & Operations

Hendirk Niestert

• Member of the Board (DOB 1975)
• Joined technotrans in 2007, at last service director worldwide and Board of Management member since February 2018
• Responsible for Sales, Service & Quality Management

Investment Highlights

Why investing in technotrans shares is an attractive proposition:

• You are investing in a successful business model designed for the long term, from a German mid-cap business.
• You are investing in a strategy, that targets a steady development in value and healthy profits.
• You are investing in innovation and enterprise-led growth in an international environment.
• You participate in new trends and new technologies.