technotrans SE — Interim / Quarterly Report 2016

Aug 5, 2016

Business Development 2016

PRESENTATION OF THE RESULTS FOR THE FIRST HALF 2016

05.08.2016

Second quarter 2016 \ First half 2016

• $\rightarrow$ Strong second quarter underpinned growth targets for 2016

• Revenue plus 11.4 % gog, € 33.2 million after $\epsilon$ 29.8 million in Q2/15

• EBIT € 2.3 million, EBIT margin 6.9 % (previous year 7.4 %) increased expenses by drupa ( $\epsilon$ 0.4 million)

• Technology segment (65.9 % of the consolidated revenue) € 41.9 million, plus 3.9 %, print +11.0 %, non-print -4.5 %

• Services segment (34.1% of the consolidated revenue) $\epsilon$ 21.7 million, plus 8.2%, Technical Documentation grows organic and inorganic

• EPS at June 30, 2016 € 0.48, 7% over previous year

• Equity ratio reaches 66.8 %, net liquidity falls temporarily to $\epsilon$ 6.8 million

• $\rightarrow$ Employee total increases to 862 (Dec 31, 2015: 828)

BUSINESS MODEL

The group of companies

• leading system supplier with the core $\sum$ competence of liquid technology
• customer-specific solutions for $\sum$ temperature control and filtration as well as pumping and spraying technology for/with fluids
• extensive range of individual services $\sum$ world-wide

The business model

reporting segments

• technology (577 employees)

• services $\blacktriangleright$ (285 employees)

Segment technology Products and markets

Product portfolio	Market overview	Positioning
> Dampening solution systems	> Printing industry	$>$ World market leader in print
$>$ lnk supply	$\angle$ Laser industry	area
> Industrial cooling solutions	> Stamping and forming technology	$>$ Established system and development partner in
> Preparation of cooling		mechanical and plant engineering
lubricants	$>$ Tooling industry
> Spray Iubrication systems	> Battery and converter	$>$ Innovation partner for new technological applications in
> X-ray and scanner temperature control	> Medical and scanner technology	niche markets
Battery/converter cooling

Segment services Products and markets

Product portfolio	Market overview	Positioning
Spare parts $\sum$	$\rightarrow$ Printing industry	$>$ World market leader for
> Customer Service Support	> Laser industry	services in the printing industry
Modernisation $\sum$	$\rightarrow$ Stamping and forming technology	$\angle$ Extension of service activities
Maintenance		in Non-Print-Markets
Installations	$>$ Tooling industry	$\rightarrow$ Additional demand for
Engineering	Battery and converter	services and installation within the battery, converter
	> Medical and scanner	and scanner technology
Technical documentation $\sum$	technology	Steady expansion of $\sum$ worldwide range of services

Worldwide presence

Reference customers

Long-term growth strategy

GROWTH MARKETS

• steady expansion
  of new niche markets:

• medical care
• safety
• storage
• semiconductor
• and others

MACHINERY & PLANT ENGINEERING

• Development partner for
  new technologies and applications $\rightarrow$
• ongoing product diversification
• platform strategy $\rightarrow$
• laser
• turning/milling/grinding/polishing
• cutters/presses
• other applications

PRINT INDUSTRY

Development partner for new technologies and applications ongoing product diversification $\sum$ platform strategy

• offset print - digital print - flexo print - other printing processes

SERVICE BUSINESS

Expansion/establishment of international service business in all market areas:

• spare parts management - installation - maintenance - techn. documentation (gds) - training

Growth strategy 2017/2018

> Target: technotrans grows stronger than the market

FINANCES AND OUTLOOK

Turnover since 2006

growth resumed after transformation

EBIT/EBIT-Margin since 2006

Solid increase in profit hand in hand with continuing high investment in future growth

Control paramenter

Equity/Equity ratio million $\in$ 70 63.2% 59.9% 63.7% 68.0% 70% 60.0% 58.1% 60 55.5% 60% 50.0% $47.7\%$ 45.2% 56.9 50 53.9 50% $51.7$ 40 40% 41.8 30 30% 20 20% 10 10% $\Omega$ 0%

2010

2011

2012

2013

2014

2015

2006

2007

2008

2009

05.08.2016

The financial year 2016 by quarters

TURNOVER AND EBIT BY QUARTERS

Best sales quarter since financial crisis Business performance in line with expectations

• Q2/2016: growth in all markets $q$ oq $\rightarrow$ turnover + 11.4 percent

• EBIT improved to $\in$ 2.3 million, increased $\sum$ expenses for drupa included

• $>$ Outlook 2nd half of 2016: turnover and net profit stronger than 1HY

• full year guidance confirmed

The financial year 2016 by segments

TURNOVER AND EBIT BY SEGMENTS

• Technology (65.9%) decline in turnover +3.9% (yoy) driver $\rightarrow$ printing industry and growth markets

• positive segment result (yield = $2.1\%$ ) confirmed. Increased trade fair costs (drupa) of $\epsilon$ 0.4 million included

• $\rightarrow$ Services $[34.1\%]$ growth of turnover +8.2 % (yoy) $\text{driver} \rightarrow \text{gds} - \text{incl.}$ Ovidius and follow-up business

• stable segment result (rate of return 16.1%)

05.08.2016

Key figues at a glance

Earning figures (in million $\epsilon$ )	1HY 2015	1HY 2016	$\Delta$ in $\%$
Turnover	60,333	63,555	$+5.3$
EBITDA	5,982	5,967	$-0.3$
EBIT	4,440	4,377	$-1.4$
EBIT-margin in %	7.4%	6.9%
Net profit for the period *	2,904	3,160	$+8.8$
Net profit per share	0.45	0.48	$+6.7$

Balance sheet figures (in million $\epsilon$ )	FY. 2015	1HY 2016	$\overline{\Delta}$ in %
Balance sheet capital	76,043	77,676	$+2.1$
Equity	51,725	51,907	$+0.4$
Equity ratio in %	68.0%	66.8%
Net debt	$-11,575$	$-6,768$	$-41.5$
Working Capital	19,978	14,908	$-25.4$

* Profit attributable to technotrans AG shareholders

Cashflow key figures (in million $\epsilon$ )	1HY 2015	1 HY 2016	$\Delta$ in %
Operational cashflow	3,669	$-504$
CF from investing activities	$-685$	$-60$	$-91.2$
CF from financing activities	$-4,039$	$-4,470$	$+10.7$
Free Cash Flow	2,984	$-564$

Other key figures	1HY 2015	1HY 2016	$\Delta$ in $\%$
Employees	795	845	$+6.3$

Forecast for 2016 confirmed $\mathbf{y}$

Outlook 2016

Overview of technotrans share

• $\blacksquare$ Freefloat
• technotrans AG (eigene Aktien)
• Ojectif Small Cap
• Midlin NV
• Baring Asset Management Limited
• Hauck & Aufhäuser S.A.

KEY DATA SHARE
ISIN/Code	DE000A0XYA7/A0XGA
establishment/IPO	1970/1998
financial year	$01.01 - 31.12.$
share capital	6,907,665.00
number of shares	6,907,665
number of shares (free float)	6,532,750
stock markets	XETRA, Frankfurt
designated sponsors	Bankhaus Lampe, equinet Bank
index	Prime Standard

market capitalisation: as of August 3, 2016 EUR 132 million

Share performance and analyst estimates

SHARE PERFORMANCE JANUARY 1st, 2015 - June 30th, 2016

dividend policy: distribution of 50 % of the $\left. \right. \right. \left. \right. \left. \right. \left. \right. \left. \right. \left. \right. \left. \right. \left. \left. \right. \left. \right. \left. \left. \right. \left. \right. \left. \right. \left. \left. \right. \left. \right. \left. \left. \right. \right. \left. \left. \right. \left. \right. \left. \right. \left. \left. \right. \right. \left. \left. \right. \right. \left. \left. \right. \left. \left. \right. \right. \left. \left. \right. \right. \left. \left. \right. \left. \left. \right. \right. \left. \left. \right. \right. \$ consolidated net earnings

Research
2016-04-29	Bankhaus Lampe buy	Gordon Schönell price target € 20.00
2016-27-07	Warburg Research buy	Eggert Kuls price target € 23.10
2016-07-28	equinet Bank buy	Victoria Kruchevska price target € 21.00
2016-05-03	Hauck + Aufhäuser buy	Nils-Peter Gehrmann price target € 23.00
2016-04-12	HSBC hold	Richard Schramm price target € 21.00
2016-06-20	BHF-Bank overweight	Winfried Becker price target € 20.80
Financial Calendar

2016-10-28	Interim Report (1-9/2016)
2016-03-14	Annual Report 2016

Investment Highlights

Why investing in technotrans shares is an attractive proposition:

• You are investing in a successful business model designed for the long term, $\left. \rule{0.3cm}{0.12cm}\right.$ from a German mid-cap business.
• You are investing in a strategy, that targets $\rightarrow$ a steady development in value and healthy profits.
• You are investing in innovation and enterprise-led growth in an international $\rightarrow$ environment.

Management

Henry Brickenkamp

• Chief Executive Officer

• DOB 1968 $\sum$

• Sales director since 2005, Board of Management member since 2006

• $\rightarrow$ Responsible for Products & Markets

Dirk Engel

• Chief Financial Officer

• DOB 1967 $\sum$
• $\rightarrow$ Head of finance and accountancy since 2004, Board of Management member since 2006
• $\rightarrow$ Responsible for Finance & Administration

Dr. Christof Soest

• Chief Technology Officer $\sum_{i=1}^{n}$
• DOB 1964 $\sum$

• Board of Management member since 2011

• Responsible for Technology & Operations

Thank you for your attention!

Member of the technotrans group Zitechnotrans ⊠gds Zitermotek 乙klh

Any forward-looking statements contained in this presentation represent our best judgement as to what will occur in the future. The Company's actual results could differ materially from those presented and will depend on a number of competitive and economic factors, some of which will be outside the control of the company.