technotrans SE — Investor Presentation 2021

Nov 9, 2021

technotrans and in the interest of the time
			······ Webcast
			9 Months 2021
					___ November 9, 2021
			and the same of the same of the same of the same of the same of the same of the same of the season of the season

and the contract and the contract and the contract and the consistent of the consistent of the consistent of the consistent of the contribution of the contribution of the con

Agenda

• Management Summary
• Business Performance
• Strategy Update Future Ready 2025
• Supply Chain Status
• Sustainability
• Outlook
• Conclusion
• Contact/Disclaimer

Strategy & operations

Future Ready 2025 Strategic focus markets Revenue EBIT Order situation Supply Chain Management Net assets and financial position Full year forecast 2021

further on track

V

Key figures 9 months 2021

Strategy: Important milestones implemented

• Clear sales focus on target markets
• the beginning of 2022:

→ technotrans solutions GmbH Reisner + gwk KLH + technotrans SE → technotrans SE

• First renaming completed (gwk → technotrans solutions GmbH)
• -
• under new brand

Dynamic focus markets

Plastics

• Increased demand for energy efficient solutions
• Attractive new and follow-up business in the low-temperature cooling segment and in compact temperature control systems

Healthcare & Analytics

• Ongoing strong demand for cooling systems used in analytics and baggage scanners
• Innovative cooling systems are in clinical trials and indicate revenue potential

Energy Management

• Large-volume follow-up orders for battery cooling systems
• Successful development from Tier 2 to Tier 1 supplier
• Supply chain situation leads to revenue shift

Print

• Willinaness to investment continues and drives revenue growth

Laser & Machine Tools

– Revenue increase due to clear strategic sales focus

Technical Documentation

• Expanding expertise as a digitization partner through cloud-based solutions

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+

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+

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Strong increase in Sales & EBIT

Revenue 9 months 2021 (€ mio.)

• Strategic focus markets Plastics, Healthcare & Analytics, Energy Management and Print are the main growth drivers.

• EBIT rises by 110.9% and has more than doubled.
• EBIT margin improves accordingly from 2.8 % to 5.3 %.

technotrans

Segment Technology

Revenue 2020/2021 by quarters (€ mio.) *

EBIT 2020/2021 by quarters (€ mio.) *

• -

• Focus markets as growth drivers.

• first nine months.

• EBIT margin at 1.8 % (previous year: -1.0 %).

Business performance

Segment Services

Revenue 2020/2021 by quarters (€ mio.) *

EBIT 2020/2021 by quarters (€ mio.) *

• year.

• Withdrawal of corona-related restrictions enables more on-site service activities.

• EBIT reaches € 6.1 million in the first 9 months (previous year: € 4.9 million).

• EBIT margin at 15.1 % (previous year: 13.7 %).

technotrans

Business performance

Balance Sheet ratios

Equity & Equity ratio (€ mio./%)

Investment & Depreciation (€ mio.)

• Solid equity ratio; increased by two percentage points compared with December 31, 2020.
• Leverage further decreased.

Net debt (€ mio.) & Net debt / EBITDA

Solid financial position

Operating cash flow based on strong business performance (€ mio.)

Cash equivalents remain on a high level despite high scheduled debt repayments (€ mio.)

Positive free cash flow; increased compared to previous year (€ mio.)

Net working capital increased, partly due to security stockpiling (€ mio.)

technotrans

Future Ready 2025 – Strategic Milestones

2021 - 2022 Phase I: Stability & Profitability

• Continuation of the initiated change process based on existing core competencies
• Concentration on focus markets
• Establishment of a market-oriented organizational structure
• Consolidation through use of group-wide synergy effects, expansion of shared services
• Merger of individual group companies
• Strengthening technotrans as one brand

2023 - 2025 Phase II: Profitable Growth & Investment

Accelerated growth based on:

• Consistent concentration on focus markets (domestic and international markets)
• International business expansion
• Innovative product development
• Use of new technologies
• M&A

Mergers of group companies

technotrans®

Legal Entity: technotrans SE

Legal Entity: technotrans solutions GmbH

Mergers to be completed at the beginning of 2022

All merger preparations proceeding according to plan

gwk already renamed into technotrans solutions GmbH

Process analysis for standardization done

More flexible capacity control through uniform standard processes

All merged entities will work with SAP as of 2022

Supply Chain Status

Supply chain - current situation

14 technotrans | Webcast 9 months 2021 - November 9, 2021

technotrans®

Supply Chain Status

Supply chain challenges

• In the first 9 months 2021 supply of materials was ensured at all times
• Delivery date commitments are increasingly uncertain
• The planning horizons are declining
• Significant price increases for certain raw materials
• Normalization/reduction of supply bottlenecks earliest in 2022

medisures

• Increase of the order volume
• Material range extension
• Identification of alternative components/ suppliers
• Flexibilization of production setup
• Increase of temporary workers for flexible capacity management

technotrans

• Price negotiations with customers

Ensuring an adequate supply has top priority!

Sustainability

Sustainability - we take responsibility

New energy efficient location

A States of the States

• Reisner: New energy efficient location built in less than 9 months
• Now 2 out of 5 plants in Germany are KfW-55 standard.

Creation of a group wide CO, footprint

• Determination of the CO2 footprint of all production sites worldwide has been completed
• Measures are being defined

Sustainability management ESG manager

• Division has started activities
• Underlines the sustainable orientation of the group

Location Baden-Baden

• Order placed for supplementary PV system
• Coverage of 34 % of own electricity demand as of Q1 2022

Outlook

Our markets in 2021

Plastics

• Strong revenue generation expected
• Merger of gwk/Reisner fully on track

Healthcare & Analytics

• Ongoing growth trend expected until the end of the year
• Analytics and baggage scanners as main drivers

Energy Management

• Strong order intake lays foundation for future revenue momentum
• Promising prototype orders generate additional potential

Print

• Continued brightening expected

Laser & Machine Tools

• Revenues will be further stabilized by expanding existing business relationships

Technical Documentation

• Further stabilization expected

Outlook

Financial targets 2021: Forecast confirmed

technotrans®

Outlook

Medium-term planning 2025

Conclusion of the Board of Management

• The technotrans group performed well in the first nine months.
• The Future Ready 2025 strategy is being systematically implemented. Revenue and profitability have stabilized; resilience has improved.
• The situation on the supply markets has deteriorated further. The effective measures initiated will be continued and intensified.
• The order situation signals further growth.
• Forecast 2021 confirmed: Revenue: ~ € 207 m. EBIT margin: 4.5 — 5.5 %

Peter Hirsch CTO/COO

Michael Finger CFO

Contact

Investor Relations

Frank Dernesch Manager Investor Relations & Corporate Finance

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

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.

Annex

Consolidated Balance Sheet as of September 30, 2021

ASSETS	30/09/2021	31/12/2020
	€ '000	€ '000
Non-current assets
Property, plant and equipment	36,646	36,781
Right-of-use assets	2,750	3,210
Goodwill	23,513	23,513
Intangible assets	6.345	7,016
Other financial assets	165	151
Deferred tax	1,141	1,142
	70,560	71,813
Current assets
Inventories	33,219	26,702
Trade receivables	25,472	21,082
Income tax receivable	86	103
Other financial assets	1,318	546
Other assets	1,873	2,122
Cash and cash equivalents	16,409	25,749
	78,377	76,304
Total assets	148,937	148,117

EQUITY AND LIABILITIES	30/09/2021	31/12/2020
	€ '000	€ '000
Equity
Issued capital	6,908	6,908
Capital reserve	19.097	19.097
Retained earnings	57,931	55,461
Other reserves	-6,624	-6,999
Net profit for the period	5,433	4,956
Total equity attributable to technotrans SE shareholders	82,745	79,423
Non-controlling interests in equity		-5
	82,740	79,418
Non-current liabilities
Borrowings	26,416	31,043
Employee benefits	781	686
Other financial liabilities (incl. IFRS 16)	1.300	1,680
Deferred tax	243	448
	28,740	33,857
Current liabilities
Borrowings	7,787	12,960
Trade payables	7,178	4,606
Prepayments received	5,889	3,210
Employee benefits Provisions	6,447 3.947	5,309 3,490
	1,414	274
Income tax payable Other financial liabilities (inkl. IFRS 16)	1.498	2,715
Other liabilities	3.297
	37,457	2,278 34,842
Total equity and liabilities	148,937	148,117

Annex

Consolidated Income Statement Jan 1 - September 30, 2021

	01/07 - 30/09/2021	01/07 - 30/09/2020	01/01 - 30/09/2021	01/01 - 30/09/2020
	€ '000	€ '000	€ '000	€ '000
Revenue	52,169	46,313	156,604	141,451
of which Technology	38,697	32,945	116,412	102,380
of which Services	13,472	13,368	40,192	39,071
Cost of Sales	-36,706	-33,754	-111,455	-102,066
Gross profit	15,463	12,559	45,149	39,385
Distribution costs	-6,167	-5,260	-18,006	-16,016
Administrative expenses	-5,047	-4,566	-14,987	-14,165
Development costs	-1,158	-1,626	-3,717	-5,562
Net impairment losses/gains on financial and contract assets	-49	-20	-13	-119
Other operating income	225	447	963	1,757
Other operating expenses	-304	-451	-1,163	-1,379
Earnings before interest and taxes (EBIT)	2,963	1,083	8,226	3,901
Financial income		18		32
Financial charges	-144	-176	-466	-517
Net finance costs	-144	-158	-465	-485
Profit before tax	2,819	925	7,761	3,416
Income tax expense	-845	-264	-2,328	-974
Net profit for the period	1,974	661	5,433	2,442
of which:
Profit attributable to technotrans SE shareholders	1,974	661	5,432	2,442
Profit attributable to non controlling interests	O	0		0
Earnings per share (€)
basic / diluted	0.29	0.10	0.79	0.35

Annex

Consolidated Cash Flow Statement Jan 1 - September 30, 2021

01/01 -

2,442

5,237 974 -34 -169 485 0 8,935

-711 1,084 -592 1,879 10,612

32 -456 -600 9,588

	30/09/202	30/09/202
	0000, €	C € '000
Cash flow from operating activities
Net profit for the period	5,433	2.442
Adjustments for:
Depreciation and amortisation	5,290	5.237
Income tax expenses	2,328	974
Gain (-)/loss (+) on the disposal of property, plant and equipment	-63	-34
Foreign exchange losses (+)/gains (-)	417	-160
Net finance costs	465	485
Other non-cash changes	O	C
working capital changes Change in:
Inventories	-6,517	-71
Receivables and other current assets	-4,912	1,084
Liabilities and prepayments	5,047	-597
Provisions and employee benefits	1,691	1.879
Cash from operating activities	9,165	10.612
Interest received		32
Interest paid	-386	-456
Income taxes paid/income tax rebates	-1,329	-600
Net cash from operating activities	7,452	9.588

	30/09/202 € '000	30/09/202 O € '000
Cash flow from investing activities
Cash payments for investments in property, plant and equipment and in intangible assets	-3.160	-6.128
Proceeds from the sale of property, plant and equipment	175	85
Net cash used for investing activities	-2,985	-6.043
Cash flow from financing activities
Cash receipts from the raising of short-term and long-term loans	0	9.450
Cash payments from the repayment of loans	-9.800	-5,097
Distribution to investors	-2,487	0
Cash payments from the repayment of lease iabilities	-1.467	-2,111
Net cash used in financing activities	-13.754	2,242
Net increase/decrease in cash and cash equivalents	-9.287	5.787
Cash and cash equivalents at start of period	25,749	20,910
Net effect of currency translation in cash and cash equivalents	-53	-144
Cash and cash equivalents at end of period	16.409	26.553

01/01 -

Profile of technotrans SE

* Angaben per 31.12.2020

Multichannel Customer Approach

Many industrial processes require precise cooling and temperature control. technotrans provides customized state of the art solutions in thermal management.

* Original Equipment Manufacturer

End-Customers

Range of products and services

USPs of technotrans:

technotrans

Shareholder information

technotrans - an attractive investment

€ 186.5 m + 8.0 %	up to 50% of consolidated net profit	Luxempart S.A.: 13.2 % Gerlin N.V .: 7.6 % Objectif Small Cap 5.3 % MidlinN.V. 5.2 % Allianz Vie 5.1 % LOYS Investment 4.7 % Universal Investment 3.4% MONOLITH 3.0 % Freefloat 52,5 %	- r
			- SI - A
Market Cap Nov. 4, 2021	Dividend Policy	Shareholder structure

Equity story

• Profitable growth strategy
• Technological leadership
• lear market focus
• iversified customer base
• ternational network
• ustainability commitment
• ttractive dividend policy

Shareholder information

Share price performance

Date: November 4, 2021

- Share Price:	€ 27.00
- Market cap:	€ 186.5 m

Performance since January 2021:

Share Price:	+ 8,0 %
Moudent a qual	C 170 0 .

• "Market cap:

Current Analyst Recommendations:

(Hauck und Aufhäuser AG, Warburg Research GmbH, LBBW)

- Bandwidth:	€ 32.60 - 38.0
- Recommendation:	2x buy / 1x ho