technotrans SE — Investor Presentation 2019

Aug 6, 2019

Presentation of the results for the first-half-year 2019

August 6, 2019

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BUSINESS PERFORMANCE 1HY 2019 2 BUSINESS MODEL 11 THE TECHNOTRANS SHARE 17

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HY1 2019 – business performance at a glance

• › All divisions in line with planning except gwk
• › Consolidated revenue € 102.6 mn and EBIT of € 4.1 mn
• › 5.0 percent growth of consolidated revenue adjusted for gwk
• › Positive free cash flow
• › Strong second half year 2019 expected
• › Guidance 2019 confirmed

HY1 2019 – operative highlights

	technotrans performance in relevant markets	market outlook
	Printing industry: Development according to plan. Outlook steady.	o/-
	Laser and machine tool industry: Market shares further increased. Growth trajectory continues.	o/+
	Growth markets: Electric mobility: Strong growth. Order intake above expectations; large number of new projects.	++
	Semiconductor industry/EUV, medical and scanner technology: Continuing growth. Installed basis increasing.	+
	Plastics processing industry: Temporary impairments at gwk in Q1 (market) and Q2 (ERP software). Strong order intake outside automotive industry.	-

Key figures HY1 2019

figures in € mn	HY1	HY1	Δ
	2019	2018
Revenue	102.6	107.4	-4.4%
EBITDA	7.6	11.6	-34.6%
EBIT	4.1	9.1	-54.8%
EBIT-margin (%)	4.0%	8.5%
Net profit for period	2.7	6.4	-57.7%
Earnings per share (€)	0.39	0.93
	30-Jun-2019	31-Dec-2018
Equity	71.7	75.2	-4.7%
Equity ratio (%)	50.9%	55.3%
Net debt	29.6	19.4	52.6%
Ø employees (FTE)	1,281	1,236	3.6%

• › Temporary effects at gwk affecting performance of the group in HY1 2019
• › Strong order backlog
• › Improvement in business performance expected in HY2 2019
• › Solid assets and financial position

Performance Segment Technology

> Temporary decline of revenue and profitability in HY1 2019 due to low performance of gwk

EBIT 2018/2019 by quarters (million €)

Performance Segment Services

> Stable performance in HY1 2019

EBIT/EBIT-Rendite 2016-2018 (million € / %)

EBIT 2018/2019 by quarters (million €)

Key Performance Indicators

Net debt incl. leasing liabilities increased

* incl. 3.9 € million leasing liabilities acc. to IFRS 16

Free Cash Flow positive despite increased capex

figures in million € ; share price in €

Financial Position

Financial liabilities 2016-2019 short-term/long-term Net-Working Capital 2016-2019 (million €) (million €)

August 6, 2019 Presentation of the results for HY1 2019 9

Realised growth and guidance

Revenue (million €)

• › Revenue growth 2019 expected between 1 - 4%
• › High dynamics of the growth markets

EBIT (million €) and EBIT margin (%)

• › Weaker EBIT 2019 due to lower revenue contribution of gwk, expenses for further growth and general cost inflation of about 3%
• › Measures set to increase

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technotrans – business model

Technology focused industrial manufacturer Leading system supplier Core competence: liquid technology Areas of expertise in technology: 1. Cooling and Temperature control 2. Filtering and Separating 3. Pumping and Spraying of liquids	Growth strategy Becoming market leader in all areas through innovative organic growth and a focused M&A activties (new markets, strategic supplements, internatonalisation). Basis: a solid financial position.	Customized solutions High expertise in projects and serial production in small / midsized batches (niche player) Providing high quality, precision and highest reliability
Balanced market diversification 1. Print (38%) 2. Plastics (29%) 3. Laser, tooling, stamping/forming (20%) 4. Growth markets (10%) 5. Technical Documentation (3%) (% in brackets: group revenue share FYE 2018)	Broad customer basis Broad customer basis consisting of Original equipment manufacturers (OEM) and End customers (B2B)	International sales & services network 19 worldwide locations Production plants in GER, USA and China Broad range of individual and after sales services: Spare Parts, installation, maintenance, 24/7 hotline, technical documentation.
Reporting:Technology and Services

technotrans – the group

Headquarter (founded 1970) tt america founded 2000 (ttGROUP2000) termotek founded 1998 (ttGROUP2011)

• › 1,450 employees
• › IPO: 1998
• › 19 locations, thereof 7 production sites (5 x Germany, USA, China)
• › Worldwide sales- and services network

› Brands:

International Footprint

Markets and reporting segments

Segments

Growth Strategy

target ≈ 10%

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technotrans share / shareholder structure

Market capitalisation: EUR 132.5 million

(as of August 5, 2019)

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, ODDO SEYDLER
index	Prime Standard

Share price performance and research

• › Share Price (XETRA) as of August 5, 2019: € 19.18
• › 1HY 2019- Min: € 21.00 / Max: € 30.00 (XETRA)

Financial Calendar 2019

	November 5, 2019
--	------------------	--	--

November 5, 2019 Quarterly Communication 1-9/2019

Events 2019

August 29, 2019	Commerzbank Sector Conference, Frankfurt
September 24, 2019	Berenberg and Goldman Sachs Eighth German Corporate Conference, Munich
October 10, 2019	technotrans Capital Markets Day at termotek location in Baden-Baden
November 25 - 27, 2019	Deutsches Eigenkapitalforum, Frankfurt
December 3, 2019	Berenberg Pennyhill Conference 2019, London

Investing in technotrans shares an attractive proposition:

• › Growth strategy focused on fast growing industries with high margins
• › High entry barriers due to technological leadership in the area of fluid technology
• › Long term revenue flows through close customer relationships due to focus on customized solutions
• › Limited cyclicity through industry diversification and a broad range of additional / after-sales-services
• › International network to accompany existing and acquire new customers
• › Solid financial position as a basis for further growh
• › Attractive divided policy
• › Committment to sustainability

Management

Dirk Engel (Dipl. Kfm.)

• › Spokesman of the Board of Management (DOB 1967)
• › Since 2004 Head of Corporate Accounting, since 2006 Chief Financial Officer, since March 12, 2018 Spokesman of the Board of Management
• › Responsible for Finance and Administration

(Finance/Controlling, Human Resources, IT, Legal & Compliance and Investor Relations)

Peter Hirsch (Dipl.-Ing.)

• › Member of the Board of Management (DOB 1972)
• › Since 2013 Business Development Manager, since 2014 Managing Director of Termotek GmbH, since July 1, 2018 member of the Board of Management
• › Responsible for Technology & Operations (Research & Development, Electrical engineering, Business Units, Production, Purchasing and Logistics)

Hendirk Niestert (Dipl.-Ing. FH)

• › Member of the Board of Management (DOB 1975)
• › Since 2007 Head of Service, since February 1, 2018 member of the Board of Management
• › Responsible for Markets (Sales, Service, Quality Management and Marketing)

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Contact

Frank Dernesch Manager Investor Relations & Corporate Finance

Tel. +49 (0)2583 301-1868 Fax +49 (0)2583 301-1054 frank.dernesch@technotrans.de

Disclaimer

This presentation contains statements on the future development of the technotrans Group.

These reflect the present views of the management of technotrans SE and are based on the corresponding plans, estimates and expectations. We point out that the statements are subject to certain risks and uncertainties which could mean that the actual results differ considerably from those expected.

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Consolidated Balance Sheet as of June 30, 2019

ASSETS
	30/6/2019	31/12/2018
	€ 000 | €000
Non-current assets
Property, plant and equipment	31,531	28,583
Rights of use for leased assets	3,791	0
Goodwill	23,513	23,513
Intangible assets	7,647	7,693
Other financial assets	173	162
Deferred tax	1,469	1,466
	68,124	61,417
Current assets
Inventories	33,025	28,296
Trade receivables	23,792	27,111
Income tax receivable	1,295	629
Other financial assets	1,868	758
Other assets	2,095	2,255
Cash and cash equivalents	10,662	15,566
	72,737	74,615
Total assets	140,861	136,032

EQUITY AND LIABILITIES
	30/6/2019	31/12/2018
	€ 000 | €000
Equity
Issued capital	6,908	6,908
Capital reserve	19,097	19,097
Retained earnings	49,406	43,282
Other reserves	– 6,430	– 6,426
Net profit for the period	2,707	12,383
Total equity attributable to technotrans SE shareholders	71,688	75,244
	71,688	75,244
Non-current liabilities
Borrowings	25,712	25,956
Provisions	1,070	942
Leasing liabilities	2,260	0
Other financial liabilities	614	614
Deferred tax	1,086	1,220
	30,742	28,732
Current liabilities
Borrowings	9,950	8,431
Trade payables	8,138	6,712
Prepayments received	5,517	3,115
Provisions	8,864	9,751
Income tax payable	260	700
Leasing liabilities	1,676	0
Other financial liabilities	1,173	800
Other liabilities	2,853	2,547
	38,431	32,056
Total equity and liabilities	140,861	136,032

Consolidated income statement

	$1/4/-$ 30/6/2019	$1/4/-$ 30/6/2018	$1/1/ -$ 30/6/2019	$1/1/-$ 30/6/2018
	€ 000	€ 000	€ 000	€ 000
Revenue	49,522	53,234	102,591	107,364
of which Technology	35,218	38,864	73,337	78,544
of which Services	14,304	14,370	29,254	28,820
Cost of sales	$-36.015$	$-36,252$	$-72,337$	$-73,057$
Gross profit	13,507	16,982	30,254	34,307
Distribution costs	$-6.502$	$-6.565$	$-13.023$	$-12,950$
Administrative expenses	$-4,725$	$-4,900$	$-9.689$	$-9,753$
Development costs	$-1.920$	$-1,895$	$-3.983$	$-3.835$
Other operating income	774	1,176	1,490	2,154
Other operating expenses	$-369$	$-245$	$-950$	$-846$
Earning before interest and taxes (EBIT)	765	4,553	4,099	9,077
Financial income	13	$\overline{c}$	13	4
Financial charges	$-156$	$-105$	$-329$	$-212$
Net finance costs	$-143$	$-103$	$-316$	$-208$
Profit before tax	622	4,450	3.783	8,869
Income tax expenses	$-163$	$-1.222$	$-1,076$	$-2,436$
Net profit for the period	459	3,228	2,707	6,433
of which:
Profit attributable to technotrans SE shareholders	459	3,214	2.707	6.405
Profit/loss attributable to non-controlling interests	$\Omega$	14	0	28
Earnings per share $(\epsilon)$
basic/diluted	0.07	0.47	0.39	0.93

Consolidated cash flow statement

	1/1/ – 30/6/2019	1/1/ – 30/6/2018
	€ 000 | €000
Cash flow from operating activities
Net profit for the period	2,707	6,433
Adjustments for:
Depreciation and amortisation	3,464	2,489
Income tax expenses	1,076	2,437
Gain (–) / loss (+) on the disposal of property, plant and equipment	– 99	– 36
Foreign exchange losses (+)/ gains (–)	5	438
Net finance costs	329	208
Other non-cash changes	– 16	0
Cash flow from operating activities before working capital changes	7,466	11,969
Change in:
Inventories	– 4,731	– 2,553
Receivables and other assets	2,369	– 3,879
Other non-current assets	– 14	28
Liabilities and prepayments	3,794	2,214
Provisions	– 758	– 585
Cash from operating activities	8,126	7,194
Interest received	0	4
Interest paid	– 291	– 212
Income taxes paid/income tax rebates	– 1,621	– 3,091
Net cash from operating activities	6,214	3,895

Cash flow from investing activities
Cash payments for investments in property, plant and equipment and in intangible assets	– 5,234	– 2,097
Cash outflow for the acquisition of consolidated companies	0	– 569
Proceeds from the sale of property, plant and equipment	78	239
Net cash used for investing activities	– 5,156	– 2,427
Cash flow from financing activities
Cash receipts from the raising of short-term and long-term loans	4,061	3,002
Cash payments from the repayment of loans	– 2,786	– 1,906
Distribution to investors	– 6,079	– 6,079
Cash outflow for the repayment of IFRS 16 liabilities	– 1,158	0
Net cash used in financing activities	– 5,962	– 4,983
Net increase/decrease in cash and cash equivalents	– 4,904	– 3,515
Cash and cash equivalents at start of period	15,566	14,798
Consolidation-related changes in cash and cash equivalents	0	– 415
Cash and cash equivalents at the end of period	10,662	10,868