technotrans SE — Investor Presentation 2016

Nov 23, 2016

Presentation

Q3/2016: strong third quarter

• $\rightarrow$ technotrans confirms growth targets for 2016
• Q3 affected by the latest acquisitions $\sum$
• Revenue plus 27.0 % gog, $\epsilon$ 39.7 million after $\epsilon$ 31.3 million in 2015 $\left\langle \cdot\right\rangle$

• EBIT € 2.1 million, EBIT margin 5.4 % (previous year 7.5 %) special- and one-time effects through acquisition as well as increased expenses due to drupa ( $\epsilon$ 0.4 million)

• $\rightarrow$ Technology segment (66.5 % of the consolidated revenue) € 68.7 million, plus 12.5 %, print +7.0 %, non-print +19.5 %
• Services segment (33.5 % of the consolidated revenue) $\sum$ € 34.6 million, plus 13.2 %, organic and inorganic growth
• EPS at September 30, 2016 $\epsilon$ 0.71, 3% over previous year $\left\langle \cdot\right\rangle$
• Equity ratio reaches 46.5 %, net liquidity after acquisition $\epsilon$ 16.5 million $\sum$
• Employee total increases to 1.290 (Dec 31, 2015: 828) $\,>\,$

BUSINESS MODEL

The business model

Services (376 employees)

• High service ratio due to installed base in the printing industry

• $\rightarrow$ Continuous expansion of the global range of services in all non-print markets

• Additional need in service and installation generated by growth markets (e-mobility, scanner)

Technology (914 employees)

• Established system and development partner in mechanical and plant engineering

• World market leader in print

• Full-liner for temperature control solutions in laser industry

• Innovative solutions in the plastics processing industry $(gwk)$
• Innovation partner for new technological applications in growth markets

Segment Technology - Products

• Dampening solution cooling

• Ink supply systems

Industrial cooling solutions

Preparation of cooling lubricants

Spray lubrication systems

X-ray and scanner temperature control

Battery and converter cooling

Cooling and temperature control technology

Segment Services - Products

Spare parts

Customer Service Support

Modernisation

Repairs

Maintenance

Installations

Engineering

Technical documentation (gds)

Headquarter:	Meinerzhagen
Founding year:	1967
Number of employees: 380
Turnover 2016e:	$\epsilon$ 48 million

gwk: Perfect Cooling and Temperature Control

• Plastics

• Technical, innovative market leader with efficient product program worldwide

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

• Metal

• Cooling systems adjusted to specific requirements

• Consideration of the respective process technology with regard to profitability

• Chemical/Pharma

• Special products for the chemical industry

• Explosion protection, stainless steel or steam heated temparature control units

• $>$ Food

• Development of special products for the high requirements in the food and beverage industry

Induction, hardening, coating, electro-plating plants and industry ovens

Evaporation, distillation, absorption, extraction, druing Confectionery production, beverage filling, food packaging

gwk develops innovations to increase productivity for the plastic processing industry and other industries as well.

› offset print, digital print, flexo print, other printing processing…….

› medical / scanner technology, electromobility, semiconductors, others

› spare parts, installation, maintenance, techn. documentation (gds)

› injection moulding, extrusion, pressing, blow moulding, casting

› laser,

turning, milling, grinding, polishing, cutters, presses, other applications

FINANCES AND OUTLOOK

60.0% 58.1% 47.7% 45.2% 50.0% 55.5% 63.2% 59.9% 63.7% 68.0%

The financial year 2016 by segments

EBIT-development 2015/2016

TURNOVER AND EBIT BY SEGMENTS

Technology (66.5%)

• revenue growth $+12.5$ % (yoy)

• organic growth $+$ 6.6 % (yoy)

• $\rightarrow$ rate of return for the segment = 2,4 %

Services [33.5%]

• revenue growth $+13.2$ % (yoy)

• organic growth $+5.1\%$ (yoy)

• $\rightarrow$ rate of return for the segment = 14.0 %

Key figues at a glance

Earning figures $(in$ million $\overline{\epsilon})$	9M 2015	9M 2016	$\Delta$ in %
Turnover	91,600	103,269	$+12.7$
EBITDA	9,121	9,058	$-0.7$
EBIT	6,779	6,525	$-3.7$
EBIT-margin in %	7.4%	6.3%
Net profit for the period *	4,503	4,628	$+2.8$
Net profit per share	0,69	0,71	$+2.9$

Balance sheet figures (in million $\epsilon$ )	FY. 2015	9M 2016	$\Delta$ in %
Balance sheet capital	76,043	115,057	$+51.3$
Equity	51,725	53,469	$+3.4$
Equity ratio in %	68.0%	46.5%
Net debt	$-11,575$	15,583
Working Capital	19,978	13,913	$-30.4$

* Profit attributable to technotrans AG shareholders

Cashflow $\overline{\mathsf{key}}$ figures (in million $\in$ )	9M 2015	9M 2016	$\Delta$ in %
Operational cashflow	7,645	4,864	$-36.4$
CF from investing activities	$-1,147$	$-21,540$
CF from financing activities	$-5,056$	10,648
Free Cash Flow	6,498	$-16,676$

Other key figures	9M 2015	9M 2016	$\Delta$ in $\%$
Employees	8N2	890	$+11C$

acquisition-related special and one- $\sum_{i=1}^{n}$ time effects in an annual comparison

€ million

Overview of technotrans share

• Gerlin NV
• Ojectif Small Cap
• Midlin NV
• · 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
stock markets	XETRA, Frankfurt
designated sponsors	Bankhaus Lampe, equinet Bank
index	Prime Standard

market capitalisation: as of November 15, 2016 EUR 166 million

22.11.2016

Research
2016-10-28	Bankhaus Lampe buy	Gordon Schönell price target € 26.00
2016-11-04	Warburg Research buy	Eggert Kuls price target € 25.40
2016-10-21	equinet Bank accumulate	Victoria Kruchevska price target € 24.00
2016-10-28	Hauck + Aufhäuser buy	Nils-Peter Gehrmann price target € 29.00
2016-08-19	HSBC buy	Richard Schramm price target € 25.00

Financial Calendar
2017-03-14	Annual Report 2016
2017-05-05	Quarterly Communication Q1/2017
2017-05-12	Annual Shareholder Meeting 2017

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!