technotrans SE — Interim / Quarterly Report 2018

May 8, 2018

Presentation of the results for the 1. Quarter 2018

May 8, 2018

FINANCIAL YEAR 2018

Highlights of Q1 2018

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Business performance / key figures Q1 2018

in million €	Q1 2017	Q1 2018	Δ
Revenue	52.8	54.1	3%
EBITDA	5.5	5.8	5%
EBIT	4.3	4.5	5%
EBIT-margin (%)	8.2%	8.4%
EBT	4.2	4.4	6%
Net profit for period	3.1	3.2	2%
Earnings per share (€)	0.45	0.46
Free cash flow	2.7	2.6	-2%
	Dec. 31, 2017	March 31, 2018
Equity	69.8	72.9	4%
Equity ratio (%)	55.7%	55.8%
Net dept	9.3	7.1	-24%
Ø employees (FTE)	1,132	1,188	5%

• › Successful start
• › technotrans remains on growth course
• › Good basis for achieving the annual targets

The financial year 2018 by quarters

2017 2018

Turnover development 2017/2018 quarters (in million €)

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

TURNOVER AND EBIT BY QUARTERS

Revenue 3M 2017/2018:

yoy revenue + 2.5 percent

EBIT 3M 2017/2018:

€ 4.5 million (previous year € 4.3 million), EBIT margin reached 8.4 percent (previous year 8.2 percent)

The financial year 2018 by segments

2.3 2.3 2.2 2.5 2.3 2.0 1.8 2.3 2.1 2.2 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 EBIT-development 2017/2018 quarters (in million €)

TURNOVER AND EBIT BY SEGMENTS

Technology (72.3 %)

• revenue growth +4.0 % (yoy) / +12.9 % (qoq)
• rate of return for the segment = 5.7 % (previous year: 5.2%)

Services (26.7 %)

• revenue growth + 1.3 % (yoy)
• rate of return for the segment = 15.8 % (previous year 16.0%)

Key figues at a glance Q1 2017/2018

Earning figures (in million €)	Q1 2017	Q1 2018	Δ in %
Revenue	52.8	54.1	2.5
EBITDA	5.5	5.8	4.5
EBIT	4.3	4.5	4.8
EBIT-margin	8.2 %	8.4 %
Net profit for the period *	3.1	3.2	2.4
EPS	0.45	0.46	2.6

Balance sheet figures (in million €)	31.12. 2017	31.12. 2018	Δ in %
Balance sheet total	125.3	130.6	4.2
Equity	69.8	72.9	4.5
Equity ratio	55.7 %	55.8 %
Net debt	9.3	7.1	-24.0
Cash and cash equivalents	14.8	16.7	13.0

* Profit attributable to technotrans AG shareholders

Cashflow key figures (in million €)	Q1 2017	Q1 2018	Δ in %
Net Cash from operating activities	3.0	3.1	1.2
CF from investing activities	-0.3	-0.4	25.1
CF from financing activities	-0.7	-0.3
Free Cash Flow	2.7	2.6

Other key	Q1	Q1	Δ
figures	2017	2018	in %
Employees FTE (av.)	1,096	1,188	8.4

technotrans makes successful start to new financial year

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 (956 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 (gwk)
• Innovation partner for new technological applications in growth markets

Services (373 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 service 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

Global service

• 17 locations worldwide with engineers and parts stores
• 24/7 customer support with parts shipment according to the "follow the sun" principle
• Over 160 service engineers deployed at customers
• Maintenance of over 150,000 devices worldwide

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 / 19 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%
Technology	5.5%	> 5.5%
Services	16.3%	> 15.5%
Free Cashflow	0.2	positive

Business development since 2009

Growing profitability

technotrans in figures

Free Cash Flow 0.4 2.4 6.3 3.6 13.2 -3.4 4.8 8.5 -12.6 0.2 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 -16 -12 -8 -4 0 4 8 12 16 million € million €

Net debt

Consolidated Balance Sheet as of March 31, 2018

ASSETS	31.03.2018	31.12.2017
	T€	T€
Non-current assets
Property, plant and equipment	24,852	25,477
Goodw ill	23,144	23,144
Intangible assets	6,714	6,888
Other financial assets	183	231
Deferred tax	2,027	2,034
	56,920	57,774
Current assets
Inventories	29,135	26,589
Trade receivables	24,607	24,182
Income tax receivable	83	83
Other financial assets	996	596
Other assets	2,084	1,285
Cash and cash equivalents	16,728	14,798
	73,633	67,533
Total assets	130,553	125,307

EQUITY AND LIABILITIES	31.03.2018	31.12.2017
	T€	T€
Equity
Issued capital	6,908	6,908
Capital reserve	19,097	19,097
Retained earnings	49,988	37,797
Other reserves	-6,535	-6,440
Net profit for the period	3,191	12,191
Total equity attributable to technotrans AG shareholders	72,649	69,553
Non-controlling interests in equity	211	197
	72,860	69,750
Non-current liabilities
Borrow ings	18,086	19,187
Provisions	1,230	1,206
Other financial liabilities	1,070	1,073
Deferred tax	1,765	1,833
	22,151	23,299
Current liabilities
Borrow ings	4,639	3,837
Trade payables	8,272	6,062
Prepayments received	4,655	5,805
Provisions	9,880	9,769
Income tax payable	3,801	3,203
Other financial liabilities	1,170	1,285
Other liabilities	3,125	2,297
	35,542	32,258
Total equity and liabilities	130,553	125,307

Consolidated income statement

	1.1.-31.3.	1.1.-31.3.
	2018	2017
	T€	T€
Revenue	54,130	52,786
of w hich Technology	39,680	38,143
of w hich Services	14,450	14,643
Cost of sales	-36,805	-34,944
Gross profit	17,325	17,842
Distribution costs	-6,385	-6,740
Administrative expenses	-4,853	-4,785
Development costs	-1,940	-1,763
Other operating income	978	681
Other operating expenses	-601	-917
Earnings before interest and taxes (EBIT)	4,524	4,318
Financial income	2	0
Financial charges	-107	-152
Financial result	-105	-152
Profit before tax	4,419	4,166
Income tax expense	-1,214	-1,035
Net income for period	3,205	3,131
Earnings per share (€)
basic/diluted	0.46	0.45

Consolidated cash flow statement

31.03.2018 31.03.2017

31.03.2018 31.03.2017

	T€	T€		T€	T€
Cash flow from operating activities			Cash flow from investing activities
Net income for period	3,205	3,131	Cash payments for investments in property, plant and equipment	-624	-444
Adjustments for:			and in intangible assets
Depreciation and amortisation	1,262	1,219	Cash inflow /outflow for the acquisition of consolidated companies	0	0
Income tax expense	1,215	1,035
Gain (-)/loss (+) on the disposal of property, plant and equipment	-50	-68	Earn-Out Termotek/KLH	0	0
Foreign exchange losses (+) / gains (-)	321	-32	Proceeds from the sale of property, plant and equipment	206	110
Financial income	- 2	0	Net cash used for investing activities	-418	-334
Financial result	106	152
Cash flow from operating activities			Cash flow from financing activities
before working capital changes	6,057	5,437	Cash from taking up current and non-current loans	622	0
Change in:			Cash payments from the repayment of loans	-921	-705
Inventories	-1,623	-4,873	Distributions to investors	0	0
Receivables and other assets	-2,546	-1,281	Net cash used in financing	-299	-705
Other non-current assets	54	339	activities
Liabilities and prepayments received	1,975	4,089
Provisions	134	384	Net increase/decrease in cash and cash equivalents	2,344	1,987
Cash from operating activities	4,051	4,095	Cash and cash equivalents at start of period	14,798	23,929
			Net effect of currency translation in cash and cash equivalents	-414	0
Interest income	2	0	Cash and cash equivalents at end of period	16,728	25,916
Interest paid	-106	-152
Income taxes paid / income tax rebates	-885	-917
Net cash from operating activities	3,062	3,026

Overview of technotrans shareholder base

- Geriili ivv
	$\blacksquare$ Oinctif Small Cr

• Ojectif Small Cap
• Midlin NV
• LOYS AG
• Union Investment Privatfonds GmbH
• Universal-Investment GmbH

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

› market capitalisation: as of March 3, 2018 EUR 300.5 million

Share performance and analysts´ estimates

Share performance January 1, 2017 – March 3, 2018 Research

Dividend €-Cent

2017-05-04	Bankhaus Lampe buy	Gordon Schönell price target € 54.00
2017-11-14	equinet Bank neutral	Winfried Becker price target € 45.70
2018-03-15	Warburg Research buy	Eggert Kuls price target € 54.30
2018-03-14	Hauck + Aufhäuser buy	Henning Breiter price target € 54.00
2018-01-11	HSBC reduce	Richard Schramm price target € 43.00
2018-03-08	ODDO BHF neutral	Michael Junghans price target € 44.00
Financial Calendar
2018-05-18	Annual Shareholder Meeting 2018

2018-08-07 Interim Financial Report 1-6/2018

2018-11-06 Quarterly Communication 1-9/2018

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

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

Henry Brickenkamp

• Member of the Board (DOB. 1968)
• Sales director since 2005, Board of Management member since 2006
• Responsible for Products & Markets

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.

Thank you for your attention!