technotrans SE — Investor Presentation 2016

Mar 8, 2016

Financial Year 2015

IR-PRESENTATION

08.03.2016

Member of the technotrans group

Overall statement on the 2015 financial year

The Board of Management of technotrans AG assesses the year under review as having progressed positively. Business for technotrans was very successful overall in the past financial year of 2015. technotrans achieved further progress with the strategic transformation of the group into a growth-oriented specialist in liquid technology.

We again achieved all the important targets that we had set ourselves and communicated for the 2015 financial year. These include both increased revenue and increased earnings. The financial position and net worth remain very sound. We offer our shareholders an attractive yield.

We are cautiously optimistic about the coming financial year. We are determined to pursue the technotrans growth story and the medium and long-term goals.

The 2015 financial year

• $\rightarrow$ technotrans achieved its goals as a whole for the 2015 financial year

• Revenue: € 122.8 million, organic growth + 9.3 %

• EBIT: € 9.0 million $[+31.1\%]$ , EBIT margin: 7.3 %

• Technology segment grows +10.4 %, comprising +6.4 % from print, +16.2 % from non-print

• Services segment grows overall +7.2 %, only Technical Documentation down on previous year (-4.9 %)

• EPS rises from € 0.67 to € 0.96, proposed dividend of € 0.48 per share

• Equity ratio reaches 68.0 %, net liquidity = € 11.6 million

• Employee total increases by 47 employees to 828 at end of 2015

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 (566 employees)

• services $\blacktriangleright$ (262 employees)

Segment technology Products and markets

Product portfolio	Market overview	Positioning
> Dampening solution systems	> Printing industry	> World market leader in print
$>$ lnk supply	> 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

Market and prospects

Leading position in key markets

Print

• World market (equipment sales): +0.5 percent CAGR up until 2017 (NPES), stable market

• Industry in transition: growth segments, e.g. digital and $\sum$ flexographic printing gaining in importance compared with classic offset printing

• technotrans: world market leader for peripheral solutions

Laser cooling

• World market for laser applications + 5.5 percent CAGR up until 2019 (Strategies Unlimited), dynamic growth

• High growth potential also for contract laser welding (additive $\sum$ manufacturing)
• Common expansion of full-line principle

Market and prospects

Expansion in promising markets

Stamping and forming technology, machine tools

• German machine and plant construction industry (VDMA)
  expecting zero growth in 2016 for mechanical engineering industry

• Positive impulses: expansion of market position in the niche for temperature control, filtration and lubrication

Growth markets

• Scanner technology in aviation safety: + 7 percent CAGR up until 2020 (homelandsecurityresearch)

• Medical technology / magnetic resonance tomography: +3.5 percent CAGR up until 2017 (TMR)

• Great innovation potential for technotrans

Worldwide presence

Reference customers

HEIDELBERG-	manroland web systems	manroland sheetfed	SAUER GmbH Ultrasonic	PHILIPS	осе
MULLER MARTINI	$\lambda$ mitsubishi	COFFEINTOOL	Mohn media	C COHERENT.	BUHLER
KOMORI	elexxion AG Dental-Laser	S sart	$\Rightarrow$	SONY	X SEIKI
INDEX	Function for Innovation	EOS	SINGULUS Smart Solutions To Drive The Future.	6055	$\overline{\mathsf{IST}}$
$\mathcal{Q}_{\mathbf{\Theta}}$ KBA	DMG MORI	$\Omega$ LEYBOLD OPTICS	SIEMENS	SCHULER	eldec
UD	ABB	$\mathcal{L}$ Len S	WIFAG	Kodak	TRUMPF
U HAUNI	☎ WINDMOLLER & HOLSCHER	Miyakoshi	smiths detection bringing technology to life	vossloh KIEPE	Alcon
Rapiscan systems An OSI Systems Company	rofin	— Æ	Asclepion Laser Technologies	RYOBI	STOLLE MACHINERY
Dräger	ACTIA I + M E A C T I A G m b H	AKASOL	Bystranic	DATRON	ANDRAIZ WSER

08.03.2016

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

08.03.2016 Member of the technotrans group

Non-organic growth / growth-driving acquisitions

Termotek GmbH, D-Baden-Baden

• A technotrans company since 2011 $\,>\,$
• 70 employees, revenue 2015 € 14.8 m $\left\langle \right\rangle$
• Products ranging from air-to-water heat exchangers for low- $\sum$ power lasers, specifically for medical applications, and air-towater compressor-based chillers for diode lasers in the medium performance range (up to 200 watts), through to airto-water compressor-based chillers for high-power diode lasers.

KLH Kältetechnik GmbH, D-Bad Doberan/CN-Taicang

• A technotrans company since 2013 $\,$
• 119 employees, revenue 2015 € 20.3 m $\left\langle \right\rangle$
• KLH Kältetechnik GmbH has specialised in universal cooling $\sum$ systems from 0.8 kW to 300 kW as well as energy-conscious industrial cooling equipment and plant engineering up to 1 MW.

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

08.03.2016

The financial year 2015 by quarters

EBIT-development 2014/2015 quarters (in million $\epsilon$ )

TURNOVER AND EBIT BY QUARTERS

technotrans grows according to plan

• Revenue for 2nd half of 2015 better $\sum$ than in 1st half

• EBIT stable > $\epsilon$ 2.0 million per quarter EBIT margin between 7.0 % and 7.5 % (previous year: 5.2 % – 7.0 %)

08.03.2016

$2014 = 2015$

The financial year 2015 by segments

TURNOVER AND EBIT BY SEGMENTS

Technology $(66%)$ growth of turnover +10.4 % YTD by successfully expanding in all submarkets

positive segment result $\epsilon$ 2.1 million. return for the segment reaches 2.6 %

$\angle$ Services (34%) growth of turnover +7.2 % YTD

segment result $\epsilon$ 6.8 million stable return for the segment of 16.5 %

Key figues at a glance

Earning figures $\overline{(\mathsf{in}\ \mathsf{m}}$ illion $\overline{\varepsilon})'$	GJ 2014	GJ 2015	$\Delta$ in %
Turnover	112,371	122,838	$+9.3$
EBITDA	9,873	12,187	$+23.4$
EBIT	6,830	8,952	$+31.1$
EBIT-margin in %	6.1%	7.3%
Net profit for the period *	4,381	6,262	$+42.9$
Net profit per share	0.67	0.96	$+43.3$

Balance sheet figures (in million $\epsilon$ )	GJ 2014	GJ 2015	$\Delta$ in %
Balance sheet capital	74,534	76,043	$+2.0$
Equity	47,470	51,725	$+9.0$
Equity ratio in %	63.7%	68.0%
Net debt	$-4,763$	$-11,575$	$+143.0$
Working Capital	17,238	19,978	$+15.9$

* Profit attributable to technotrans AG shareholders

Cashflow $\overline{\mathsf{key}}$ figures (in million $\in$ )	GJ 2014	GJ 2015	$\Delta$ in %
Operational cashflow	7,124	10,325	$+44.9$
CF from investing activities	$-2,303$	$-1,686$	$-26.8$
CF from financing activities	$-4,596$	$-6,093$	$+32.6$
Free Cash Flow	4,821	8,542	$+77.2$

Other key figures	GJ 2014	G. I 2015	$\Delta$ in $\%$
Employees		810	$+5^{\degree}$

Targets achieved!

Outlook 2016

technotrans-share performance in 2015

08.03.2016

Overview of technotrans share

• · 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)	6,530,588
stock markets	XETRA, Frankfurt
designated sponsors	Bankhaus Lampe, equinet Bank
index	Prime Standard

market capitalisation: as of December 31st, 2015 EUR 126 millionen

Share performance and analyst estimates

JANUARY 1st, 2014 - DECEMBER 30th, 2015 - technotrans AG - TecDAX - SDAX 227,9 202.5 177.2 151.9 26.6 101.3 76.0 Mär. 2014 Jul. 2014 Nov. 2014 Mär. 2015 Jul. 2015 Nov. 2015

SHARF PFRFORMANCF

• 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. \left. \right. \right. \left. \left. \right. \right. \left. \left. \right. \right. \left. \left. \right. \left. \left. \right. \right. \left. \left. \right. \right. \left. \left. \right. \left. \right. \left. \left. \right. \right. \left. \left. \$ consolidated net earnings

• proposed dividend of $\epsilon$ 0.48 per share for 2015

Research
2016-01-28	Bankhaus Lampe buy	Gordon Schönell price target € 20.00
2015-11-09	Warburg Research buy	Eggert Kuls price target € 23.00
2016-02-24	equinet Bank buy	Victoria Kruchevska price target € 21.00
2015-12-09	Hauck + Aufhäuser buy	Nils-Peter Gehrmann price target € 24.00
2015-12-03	HSBC hold	Richard Schramm price target € 17.50

Financial Calendar
2016-03-08	Annual Report 2015
2016-05-04	Interim Report (1-3/2016)
2016-08-05	Interim Report (1-6/2016)
2016-11-04	Interim Report (1-9/2016)

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 $\geq$ 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.