technotrans SE

Investor Presentation • Aug 7, 2018

Presentation of the results for the first half 2018

August 7, 2018

FINANCIAL YEAR 2018

Highlights of 1.HY 2018

› Revenue for first half climbs to € 107.4 million

• › EBITDA of € 11.6 million with an EBITDA margin of 10.8 percent

• › EBIT improves to € 9.1 million with an EBIT margin of 8.5 percent

• › Earnings per share reach € 0.93 after six months

• › Board of Management confirms revenue and earnings forecast for 2018 financial year

Business performance / key figures Q2 2018/2017

in million €	Q2 2017	Q2 2018	Δ
Revenue	50.4	53.2	6%
EBITDA	5.3	5.8	9%
EBIT	4.1	4.6	12%
EBIT-margin (%)	8.1%	8.6%
EBT	3.9	4.5	15%
Net profit for period	3.0	3.2	7%
Earnings per share (€)	0.43	0.47
Free cash flow	1.9	-1,2
	Dec. 31, 2017	June 30, 2018
Equity	69.8	70.1	1%
Equity ratio (%)	55.7%	54.9%
Net debt	9.3	14.3	54%
Ø employees (FTE)	1,132	1,203	6%

• › Revenue increases by 6% to € 53.2 million
• › EBIT rises to € 4.6 million, EBIT margin reaches 8.6 %
• › Free cash flow slightly negative

The financial year 2018 by quarters

52.8 50.4 52.3 49.6 54.1 53.2 Q1 Q2 Q3 Q4 2017 2018 4.3 4.1 4.4 4.6 4.5 4.6 2017 2018 EBIT-development 2017/2018 quarters (in million €) Turnover development 2017/2018 quarters (in million €)

Q1 Q2 Q3 Q4

TURNOVER AND EBIT BY QUARTERS

Revenue 1.HY 2017/2018:

yoy revenue + 4.1 percent

EBIT 1.HY 2017/2018:

€ 9.1 million (previous year € 8.4 million), EBIT margin reached 8.5 percent (previous year 8.2 percent)

The financial year 2018 by segments

TURNOVER AND EBIT BY SEGMENTS

Technology (73.3 %)

• revenue growth +6.3 % (yoy) / +8.7 % (qoq)
• rate of return for the segment = 5.7 % (previous year: 5.1%)

Services (26.7 %)

• revenue growth + 1.6 % (yoy) / -1,9% (qoq)
• rate of return for the segment = 16.0 % (previous year 15.9%)

Key figues at a glance 1.HY 2017/2018

Earning figures (in million €)	1.HY 2017	1.HY 2018	Δ in %
Revenue	103.2	107.4	4.1
EBITDA	10.8	11.6	6.7
EBIT	8.4	9.1	7.9
EBIT-margin	8.2 %	8.5 %
Net profit for the period *	6.0	6.4	5.9
EPS	0.88	0.93	5.9

Balance sheet figures (in million €)	31.12. 2017	1.HY 2018	Δ in %
Balance sheet total	125.3	127.8	2.0
Equity	69.8	70.1	0.5
Equity ratio	55.7 %	54.9%
Net debt	9.3	14.3	54.1
Cash and cash equivalents	14,8	10,9	-26.6

* Profit attributable to technotrans SE shareholders

Cashflow key figures (in million €)	1.HY 2017	1.HY 2018	Δ in %
Net Cash from operating activities	10.1	12.0	18.8
CF from investing activities	- 0.8	- 2.4
CF from financing activities	- 7.0	- 5.0	-28.5
Free Cash Flow	4.6	1.5	-68.3

Other key	31.12.	1.HY	Δ
figures	2017	2018	in %
Employees FTE (av.)	1,132	1,203	6.3

technotrans remains on growth course

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 (1,013 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 (389 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

Global service

• 20 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 / 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	€ 59 - 61 million € 57.5 million
EBIT	€ 17.4 million 8.5%	€ 18 - 20 million 8.5% - 9.0%
Technology	5.5%	> 5.5%
Services	16.3%	> 15.5%

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 June 30, 2018

ASSETS	30.06.2018	31.12.2017
	T€	T€
Non-current assets
Property, plant and equipment	25,431	25,477
Goodw ill	23,144	23,144
Intangible assets	6,950	6,888
Other financial assets	214	231
Deferred tax	2,022	2,034
	57,761	57,774
Current assets
Inventories	29,172	26,589
Trade receivables	25,986	24,182
Income tax receivable	83	83
Other financial assets	1,567	596
Other assets	2,394	1,285
Cash and cash equivalents	10,868	14,798
	70,070	67,533
Total assets	127,831	125,307

EQUITY AND LIABILITIES	30.06.2018	31.12.2017
	T€	T€
Equity
Issued capital	6,908	6,908
Capital reserve	19,097	19,097
Retained earnings	43,909	37,797
Other reserves	-6,424	-6,440
Net profit for the period	6,405	12,191
Total equity attributable to technotrans SE shareholders	69,895	69,553
Non-controlling interests in equity	225	197
	70,120	69,750
Non-current liabilities
Borrow ings	17,101	19,187
Provisions	1,232	1,206
Other financial liabilities	1,068	1,073
Deferred tax	1,693	1,833
	21,094	23,299
Current liabilities
Borrow ings	7,019	3,837
Trade payables	9,178	6,062
Prepayments received	3,738	5,805
Provisions	9,251	9,769
Income tax payable	3,124	3,203
Other financial liabilities	984	1,285
Other liabilities	3,323	2,297
	36,617	32,258
Total equity and liabilities	127,831	125,307

1.1.-30.6. 1.1.-30.6.

Consolidated income statement as of June 30, 2018

	2018	2017
	T€	T€
Revenue	107,364	103,181
of w hich Technology	78,544	73,884
of w hich Services	28,820	29,297
Cost of sales	-73,057	-68,181
Gross profit	34,307	35,000
Distribution costs	-12,950	-13,163
Administrative expenses	-9,753	-9,465
Development costs	-3,835	-3,597
Other operating income	2,154	1,434
Other operating expenses	-846	-1,798
Earnings before interest and taxes (EBIT)	9,077	8,411
Financial income	4	0
Financial charges	-212	-307
Financial result	-208	-307
Profit before tax	8,869	8,104
Income tax expense	-2,436	-2,011
Net profit for period	6,433	6,093
Earnings per share (€)
basic/diluted	0.93	0.88

Consolidated cash flow statement as of June 30, 2018

	30.06.2018	30.06.2017		30.06.2018	30.06.2017
	T€	T€		T€	T€
Cash flow from operating activities			Cash flow from investing activities
Net income for period	6,433	6,093	Cash payments for investments in property, plant and equipment	-2,097	-1,178
Adjustments for:			and in intangible assets
Depreciation and amortisation	2,489	2,428	Cash inflow /outflow for the acquisition of consolidated companies	-569	0
Income tax expense	2,437	2,011
Gain (-)/loss (+) on the disposal of property, plant and equipment	-36	-206	Proceeds from the sale of property, plant and equipment	239	354
Foreign exchange losses (+) / gains (-)	438	-561	Net cash used for investing activities	-2,427	-824
Financial result	208	306
Cash flow from operating activities	11,969	10,071	Cash flow from financing activities
before working capital changes			Cash receipts from the raising of short-term and long-term loans	3,002	0
			Cash payments from the repayment of loans	-1,906	-3,173
Change in:			Distributions to investors	-6,079	-3,799
Inventories	-2,553	-1,184	Net cash used in financing	-4,983	-6,972
Receivables and other assets	-3,879	-5,075	activities
Other non-current assets	28	514
Liabilities and prepayments received	2,214	1,720	Net increase/decrease in cash and cash equivalents	-3,515	-2,337
Provisions	-585	1,047	Cash and cash equivalents at start of period	14,798	23,929
Cash from operating activities	7,194	7,093	Consolidation-related changes in cash and cash equivalents	-415	0
Interest income	4	0	Cash and cash equivalents at end of period	10,868	21,592
Interest paid	-212	-306
Income taxes paid / income tax rebates	-3,091	-1,328
Net cash from operating activities	3,895	5,459

Overview of technotrans shareholder base

Allianz Global Investors
--------------------------	--

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 August 3, 2018

EUR 275 million

Share performance and analysts´ estimates

Share performance January 1, 2017 – August 6, 2018 Research

Dividend

2018-08-03	Bankhaus Lampe buy	Gordon Schönell price target € 54.00
2017-11-14	equinet Bank neutral	Winfried Becker price target € 45.70
2018-06-26	Warburg Research buy	Eggert Kuls price target € 54.30
2018-03-14	Hauck + Aufhäuser buy	Henning Breiter price target € 54.00
2018-03-08	HSBC hold	Richard Schramm price target € 43.00
Transfer of Coverage	ODDO BHF	Price target update soon
Financial Calendar
Quarterly Communication 1-9/2018 2018-11-06
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.