technotrans SE

Investor Presentation • Mar 13, 2018

Presentation of the results for the Financial Year 2017

March 13, 2018

New 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

Dr. Andreas J. Schmid

• Member of the Board (DOB 1967)
• Board of Management member since 2018
• Responsible for Development, Controls, Business Units, Production, Purchasing & Logistics

Henry Brickenkamp

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

Overall statement on the 2017 financial year

In summary, the Board of Management assesses the net worth, financial position and financial performance of both technotrans AG and the group for the 2017 financial year as very healthy. Consolidated revenue was taken to a new record level and the EBIT margin of 8.5 percent reached its highest level since the 2007 financial year. The good overall market conditions along with steady improvements in the relevant business units helped the group expand successfully into new growth-oriented markets.

The group management identifies the asset structure and high group equity ratio as providing a sound basis for the financing of further growth. In addition, its operations were profitable and operating cash flow showed an improvement.

All in all, the technotrans Group has the necessary financial foundations for realising further technological development as well as enabling the group to realise the planned growth in revenue and earnings. The Board of Management is therefore determined to pursue the technotrans growth story and the medium and long-term goals.

Review of 2017

A successful start to the new financial year of 2017 and consistently strong revenue and profit growth in all markets.

A successful development in the first year after the acquisition of gwk. The newest group company confirms the successful growth pathway in the plastics processing industry.

Highly promising projects in electric mobility: from mobile battery cooling for buses, rail vehicles and automated guided vehicles (AGVs) to the static quick-charging station for cars.

The upgrading of the annual targets for 2017 and the presentation of new medium-term targets (2018-2020) for the technotrans Group.

The impressive continuation in the upward trend of the technotrans share price in 2017. On December 29, 2017 it closed at EUR 44.30, up more than 93 percent on the start of the financial year (EUR 22.90).

The Financial Year 2017

Targets achieved !

Actual and forecasted business development
		2016	Forecast 2016 group management report	adjusted forecast Interim Report Q2-2017	2017
Revenue	€ million	151.8	185 - 195	203 - 208	205.1
Technology	€ million	103.6 68%	131 - 137	145 - 148	147.6 72%
Services	€ million	48.2 32%	54 - 58	58 - 60	57.5 28%
EBIT	€ million	9.7 6.4%	12 - 14 6.5% - 7.2%	16 - 17 7.8% - 8.2%	17.4 8.5%
Technology		2.8%	> 3.5%	> 4.5%	5.5%
Services		14.2%	> 14%	> 15%	16.3%
Free cash flow	€ million	-12.6	> 5	positive	0.2

FINANCIAL YEAR 2017

Business development since 2007

Intact growth story
CAGR = 12.1 % 09-17

Growing profitability

Forecasts for 2017 exceeded

technotrans in figures

Net debt

The financial year 2017 by segments

TURNOVER AND EBIT BY SEGMENTS

Technology (72 %)

• revenue growth +42.4 % (yoy)
• organic growth + 15.0 % (yoy)
• rate of return for the segment = 5.5 % (previous year: 2.8%)

Services (28 %)

• revenue growth + 19.4 % (yoy)
• organic growth + 7.2 % (yoy)
• rate of return for the segment = 16.2 % (previous year 14.2%)

Key figues at a glance FY 2016/2017

Earning figures (in million €)	FY 2016	FY 2017	Δ in %
Revenue	151.8	205.1	35.1
EBITDA	14.0	22.7	61.3
EBIT	9.7	17.4	79.2
EBIT-margin	6.4 %	8.5 %
Net profit for the period *	7.2	12.2	69.5
EPS	1.09	1.76	61.6

Balance sheet figures (in million €)	FY 2016	FY 2017	Δ in %
Balance sheet total	121.4	125.3	3.2
Equity	61.9	69.8	12.7
Equity ratio	51.0 %	55.7 %
Net debt	5.3	9.3	76.4
Cash and cash equivalents	23.9	14.8	-38.2

* Profit attributable to technotrans AG shareholders

Cashflow key figures (in million €)	FY 2016	FY 2017	Δ in %
Net Cash from operating activities	9.7	11.4	17.6
CF from investing activities	-22.4	-11.2	-50.4
CF from financing activities	16.6	-8.9
Free Cash Flow	-12.6	0.2

Other key figures	FY 2016	FY 2017	Δ in %
Employees FTE (av.)	856	1.132	32,2
Revenue per employee	177,000 €	181,000 €

technotrans significantly increases profitability

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

Share performance January 1, 2017 to December 29, 2017

Market capitalisation 158 M€ 306 M€

Share performance

22.90 € 44.30 €

Overview of technotrans shareholder base

• Gerlin NV
• Ojectif Small Cap
• Midlin NV
• LOYS AG
• Union Investment Privatfonds 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 8, 2018 EUR 278.7 million

Share performance and analysts´ estimates

Share performance January 1, 2017 – March 8, 2018 Research

Dividend

2017-11-07	Bankhaus Lampe buy	Gordon Schönell price target € 54.00
2017-11-14	equinet Bank neutral	Winfried Becker price target € 45.70
2018-01-09	Warburg Research buy	Eggert Kuls price target € 53.30
2017-11-08	Hauck + Aufhäuser buy	Henning Breiter price target € 56.00
2018-01-11	HSBC reduce	Richard Schramm price target € 43.00
2017-11-23	ODDO BHF neutral	Michael Junghans price target € 48.00
Financial Calendar

2018-05-08	Quarterly Communication 1-3/2018
2018-05-18	Annual Shareholder Meeting 2018
2018-08-07	Interim Financial Report 1-6/2018
2018-11-06	Quarterly Communication 1-9/2018

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!