technotrans SE — Investor Presentation 2019

May 7, 2019

Presentation of the results for the 1. Quarter 2019 May 7, 2019

Q1 2019 – business performance at a glance

• › Group performance: Revenue of € 53.1 million moderately below previous year; EBIT of € 3.3 million weaker
• › Increased market uncertainty prompts Board of Management to adjust targets for the year
• › Comprehensive package of measures to increase profitability and efficiency being implemented

Q1 2019 – operative highlights

Printing industry:

Developing according to plan. Outlook steady

Plastics processing industry:

Hit hard by auto-related investment restraint.

Laser and machine tool industry:

Market shares further increased. Growth trajectory continues.

Growth markets:

technotrans unlocking eytra potential for further growth.

Electric mobility:

Gathering momentum. Healthy level of orders and large number of new projects.

Semicinductor industry/EUV, medical and scanner technology: First-quarter growth.

Business performance / key figures Q1 2019

	in Mio. €	Q1 2018	Q1 2019	Δ
Revenue		54.1	53.1	-2%
EBITDA		5.8	5.1	-12%
EBIT		4.5	3.3	-27%
EBIT-margin (%)		8.4%	6.3%
Net profit for period		3.2	2.2	-31%
Earnings per share (€)		0.46	0.33
		31. Dez. 2018	30. Mrz. 2019
Equity		75.2	77.4	3%
Equity ratio (%)		55.3%	52.8%
Net debt		19.4	23.8	23%
Ø employees (FTE)		1,236	1,282	4%

Environment puts brakes on performance in Q1

Plastics processing industry hit hard

Growth story intact:

• Printing industry on track
• Market shares in laser and machine tool industry increased
• Increased momentum in growth markets

Development Segment Technology 2019

Development Segment Services 2019

2016 2017 2018

EBIT 2018/2019 by quarters (million €)

Key Performance Indicators

Net debt increased due to IFRS 16

* incl. 4.0 € million leasing liabilities acc. IFRS 16

Financial Position

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

07.05.2019 Presentation of the results for the 1. Quarter 2019 8

Balance Sheet Ratios

ASSETS	Q1 2019		FY 2018
	$\frac{0}{0}$ mio. $\in$		mio. $\in$	$\frac{0}{0}$
Non-current assets	67.6	46.1	61.4	45.1
Current assets	79.0	53.9	74.6	54.9
Total assets	146.6	100.0	136.0	100.0

ASSETS	Q1 2019 FY 2018			LIABILITIES	Q1 2019		FY 2018
	mio. €	%	mio. €	%		mio. €	%	mio. €	%
Non-current assets	67.6	46.1	61.4	45.1	Equity	77.4	52.8	75.2	55.3
Current assets	79.0	53.9	74.6	54.9	Non-current liabilities	32.0	21.8	28.7	21.1
					Current liabilities	37.2	25.4	32.1	23.6
Total assets	146.6	100.0	136.0	100.0	Total assets	146.6	100.0	136.0	100.0

Net Debt & Net Debt / EBITDA ratio 2016-2018 (million €)

07.05.2019 Presentation of the results for the 1. Quarter 2019 9

Outlook 2019

Guidance 2019 adapted to changed environment

	BEFORE	NEW
Revenue	224 – 232 € million	218 – 226 € million
EBIT	17.5 – 19.0 € million	12.0 – 16.0 € million
EBIT margin	7.8 – 8.2%	5.5 – 7.0%
Free cash flow	positive	positive
Equity ratio	> 50%	> 50%

BUSINESS MODEL

The technotrans group

tt america founded 2000 (ttGROUP2000)

• 1,450 employees
• IPO: 1998
• 19 locations, thereof 7 production sites (5 x Germany, PRC, USA)
• Global footprint

Core Competencies

• 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 (spare parts, installations, maintenance and technical documentation)

Core competencies and markets

Markets and reporting segments

PRINTING INDUSTRY Sheet-fed offset, web offset, newspaper printing, digital printing, flexographic printing
PLASTICS PROCESSING INDUSTRY
Injection moulding, extrusion, pressing, blow moulding, casting, forming, coating, thermoforming, rubber	71.8% 1) Technology
	1,057
LASER INDUSTRY, TOOLING INDUSTRY, STAMPING/FORMING TECHNOLOGY Laser (full-liner) Tooling, stamping/forming	Employees 2)
GROWTH MARKETS Elektromobility Semiconductor-/medical-/scannertechnology
SERVICES Spare parts service, service support, on-site project management, technical documentation	28.2% 1) Services 396 Employees 2)
	1) Q1 2019 2) Per 31.12.2018

Technology: Products and devices

• Dampening Solution Circulators
• Filtration Systems
• Central Cooling Systems
• Ink Supply Systems
• Modular and compact temperature controlling systems
• Industrial chillers and cooling plants

• Water treatment systems

• Cooling Systems

• Preparation and filtration for cooling lubricants
• Spray lubrication
• Dosing systems

• Cooling systems for diode, fibre and CO² lasers

• Mobile cooling systems for batteries
• Stationary cooling systems for batteries
• Active and passive cooling for charging cables for fast charging stations

Common requirements of customers which technotrans fulfills: Individual solution, highest reliability, worldwide service network

Worldwide presence / 19 sites

International Footprint

Revenue by region (2018/2017)

Service Products:

396 employees in segment services as of 31.12.2018

Growth Strategy

5 – 6% p.a.

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)

THE TECHNOTRANS SHARE

technotrans share / shareholder structure

Share performance and research

	Research
	2019-04-18	TP € 35,00, buy	Bankhaus Lampe
	2019-03-18	TP € 31,80, hold	Pareto Securities AS
	2019-04-23	TP € 40,70, buy	Warburg Research
	2019-04-18	TP € 38,00, buy	Hauck + Aufhäuser
	2019-03-29	TP € 32,00, buy	HSBC
	2019-03-18	TP € 33,00, neutral	ODDO BHF
	2019-04-24	TP € 30,75, hold	Commerzbank

2018: High: 47.90 Low: 24.00	Share Price as of 2018-12-28: € 24.50	Market Cap 2018-12-28: € million 169.2
2019: High: 30.00 Low: 23.60	Share Price as of 2019-05-06: € 23.60	Market Cap 2019-05-06: € million 163.0

Financial Calendar 2019

May 10, 2019	Annual Shareholder Meeting 2019
August 6, 2019	Interim Report 1-6/2019
November 5, 2019	Quarterly Communication 1-9/2019

Events 2019

June 28, 2019	M.M. Warburg Highlights, Hamburg
September 23 - 25, 2019	Berenberg and Goldman Sachs Eighth German Corporate Conference, München
October 10, 2019	Capital Market Day in Baden-Baden
November 25 - 27, 2019	Deutsches Eigenkapitalforum, Frankfurt

Investing in technotrans shares an attractive proposition:

• Niche focused business model
• High entry barriers due to specific know how in the area of fluid management and focus on customized solutions
• Diversified product portfolio focused on growth markets
• Limited cyclicity through extensive additional services
• International network as a base for the development of new customers and markets
• Growth strategy focused on revenue and profitability
• Attractive divided policy
• Committment to sustainability

Your contact

Frank Dernesch Manager Investor Relations & Corporate Finance

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

Note

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.

Consolidated Balance Sheet as of March 31, 2019

ASSETS	31.03.2019	31.12.2018
	T€	T€
Non-current assets
Property, plant and equipment	31.102	28.583
Right of use (IFRS 16)	3.781	0
Goodw ill	23.513	23.513
Intangible assets	7.634	7.693
Other financial assets	148	162
Deferred tax	1.471	1.466
	67.649	61.417
Current assets
Inventories	31.428	28.296
Trade receivables	27.836	27.111
Income tax receivable	467	629
Other financial assets	1.160	758
Other assets	2.172	2.255
Cash and cash equivalents	15.901	15.566
	78.964	74.615
Total assets	146.613	136.032

EQUITY AND LIABILITIES	31.03.2019	31.12.2018
	T€	T€
Equity
Issued capital	6.908	6.908
Capital reserve	19.097	19.097
Retained earnings	55.485	43.282
Other reserves	-6.320	-6.426
Net profit for the period	2.248	12.383
	77.418	75.244
Non-current liabilities
Borrow ings	27.013	25.956
Provisions	959	942
Leasing liability (IFRS 16)	2.276	0
Other financial liabilities	615	614
Deferred tax	1.153	1.220
	32.016	28.732
Current liabilities
Borrow ings	8.177	8.431
Trade payables	9.133	6.712
Prepayments received	3.838	3.115
Provisions	9.643	9.751
Income tax payable	282	700
Leasing liability (IFRS 16)	1.672	0
Other financial liabilities	1.145	800
Other liabilities	3.289	2.547
	37.179	32.056
Total equity and liabilities	146.613	136.032

Consolidated income statement

	1.1.-31.3.	1.1.-31.3.
	2019	2018
	T€	T€
Revenue	53,069	54,130
of w hich Technology	38,119	39,680
of w hich Services	14,950	14,450
Cost of sales	-36,322	-36,805
Gross profit	16,747	17,325
Distribution costs	-6,521	-6,385
Administrative expenses	-4,964	-4,853
Development costs	-2,063	-1,940
Other operating income	716	978
Other operating expenses	-581	-601
Earnings before interest and taxes (EBIT)	3,334	4,524
Financial income	0	2
Financial charges	-173	-107
Financial result	-173	-105
Profit before tax	3,161	4,419
Income tax expense	-913	-1,214
Net income for period	2,248	3,205
Earnings per share (€)
basic/diluted	0.33	0.46

Consolidated cash flow statement

31.03.2019 31.03.2018

	T€	T€
Cash flow from operating activities
Net income for period	2,248	3,205
Adjustments for:
Depreciation and amortisation	1,762	1,262
Income tax expense	913	1,215
Gain (-)/loss (+) on the disposal of property, plant and equipment	-27	-50
Foreign exchange losses (+) / gains (-)	123	321
Financial result	173	104
Other non-cash changes	8	0
Cash flow from operating activities before working capital changes	5,200	6,057
Change in:
Inventories	-3,133	-1,623
Receivables and other assets	-1,044	-2,546
Other non-current assets	9	54
Liabilities and prepayments received	3,672	1,975
Provisions	-90	134
Cash from operating activities	4,614	4,051
Interest income	0	2
Interest paid	-154	-106
Income taxes paid / income tax rebates	-690	-885
Net cash from operating activities	3,770	3,062

31.03.2019 31.03.2018

	T€	T€
Cash flow from investing activities
Cash payments for investments in property, plant and equipment	-3,616	-624
and in intangible assets
Proceeds from the sale of property, plant and equipment	-22	206
Net cash used for investing activities	-3,638	-418
Cash flow from financing activities
Cash from taking up current and non-current loans	2,600	622
Cash payments from the repayment of loans	-1,798	-921
Distributions to investors	0	0
Cash payments from the redemption of IFRS 16 liabilities	-584	0
Net cash used in financing	218	-299
activities
Net increase/decrease in cash and cash equivalents	350	2,344
Cash and cash equivalents at start of period	15,566	14,798
Net effect of currency translation in cash and cash equivalents	-15	-414
Cash and cash equivalents at end of period	15,901	16,728

Revenue and Earnings 2009 – 2018

EBIT (million €) and EBIT margin (%)

• › Segments Technology and Services contribute to revenue growth
• › High dynamics of the growth markets

$$
\angle \quad \text{CAGR}_{2018/2009} = 11.4\%
$$

• › EBIT remaining unchanged
• › Changed mix of products
• › Expenses for further growth are affecting profitability

Dividend Policy

The Board of Management proposes a dividend distribution of € 0.88 for FYE 2018

dividend in € / dividend yield in %