technotrans SE — Investor Presentation 2021

Aug 10, 2021

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			August 10, 2021

Agenda

• Management Summary $\mathbf{1}$
• $2.$ Business Performance
• 1. Strategy Update - Future Ready 2025
• Outlook $\boldsymbol{A}_{\cdot}$
• 1. Conclusion

Contact/Disclaimer

Annex

• Profile of technotrans SE $1₁$
• $2.$ Shareholder information

Strategy & operations

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

further on track

Management Summary

Key figures first 6 months 2021

Dynamic focus markets

Plastics

Continuous sales successes with temperature control units and cooling plants across the complete power bandwidth

Healthcare & Analytics

• Ongoing strong demand in cooling systems for analytics
• Positive revenue development in blood cooling segment

Energy Management

• Acquired contracts confirm leading position in Europe for BTMS (Battery Thermal Management Systems) in rail
• Successful series launches indicate increasing revenue in H2 2021

Print

• Revenue on previous year's level
• Further stabilization expected

Laser & Machine Tools

• Focus on special requirements is bearing fruit
• Markets for standard lasers remain competitive

Technical Documentation

Revenue moderately exceeding last year

5 technotrans | Webcast First 6 Months 2021 - August 10, 2021

$+ +$

$+ +$

Revenue & EBIT Growth

Revenue 2021 first six months (€ mio.)

EBIT 2021 first six months (€ mio.)

• Group revenue grows by 9.8 % compared to previous year.
• Strategic focus markets Plastics, $\overline{\phantom{m}}$ Healthcare & Analytics and Energy Management are the main growth drivers.

EBIT increases by 86.8 %.

• EBIT margin rises significantly from 3.0 % to 5.0 %. $\overline{\phantom{m}}$
• EBIT margin adjusted by structural one-off effects reaches 5.4 % (previous year: 4.2 %).

technotrans'

Segment Technology

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

EBIT 2020/2021 by quarters (€ mio.) *

• Strong second quarter not directly affected by Corona anymore.
• 8.6 % revenue growth in first six months realised.

• Focus markets are the main growth drivers.

• Positive segment EBIT of $\in$ 1.4 million realized in the first six months.

• Segment EBIT reaches 1.8 % (previous year: -0.7 %).

technotrans

Business Performance

Segment Services

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

EBIT 2020/2021 by quarters (€ mio.) *

• Revenue already two quarters above previous year.

• 13.2 % revenue growth compared to the first six $\overline{\phantom{a}}$ months of the previous year.

• Half year segment-EBIT reaches $\in$ 3.9 million $(\in$ 3.4 million).

• 14.7 % segment EBIT growth in the first six months.
• Segment EBIT remains robust as expected at 14.6 %.

Balance Sheet ratios

Equity & Equity ratio

Investment & Depreciation (€ mio.)

• Equity ratio rises to 54.6 % compared to $\equiv$ December 31, 2020.
• Leverage further decreased. $\left\vert -\right\rangle$

technotrans^**

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.)

Free cash flow positive and strong in the first six months ( $\notin$ mio.)

Net working capital ratio moderately increased

Future Ready 2025 - strategic milestones

$2021 - 2022$ Phase I: Stability & Profitability

• Continuation of the initiated change process based on existing core competencies
• Merger of individual group companies
• Use of group-wide synergy effects through central control of the functional areas
• Strengthening technotrans as one brand

$2023 - 2025$ Phase II: Profitable growth & Investment

Accelerated growth based on:

• Focus on key markets (Plastics, Healthcare & Analytics, Energy Management and Print)
• New technologies
• International business expansion

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
• Rebranding of the individual companies initiated
• • Process analysis for standardization done
• More flexible capacity control through uniform standard processes
• All merged entities will work with SAP as of 2022

Strategy Update - Future Ready 2025

13 technotrans | Webcast First 6 Months 2021 - August 10, 2021

technotrans^**

Supply chain challenges

• $\triangleright$ In HY1/2021 supply of materials was ensured at all times
• $\triangleright$ Delivery date commitments are increasingly uncertain
• $\triangleright$ The planning horizons are declining
• $\triangleright$ Significant price increases for certain raw materials
• $\triangleright$ Normalization / reduction of supply bottlenecks earliest in Q4

measures

• Increase of the ordering horizon
• Material range extension
• Identification of alternative components/ suppliers
• Flexibilization of production setup
• Increase of temporary workers for flexible capacity management
• Price negotiations with customers

Ensuring an adequate supply has top priority!

Strategy Update - Future Ready 2025

Sustainability - moving forward step by step

New energy efficient location

• 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 CO₂ footprint

• The CO₂ footprint for all technotrans locations provides the basis for the continuous CO₂ reduction

Employment of a ESG Manager

• Program Manager for further expansion of sustainability and environmental efforts

Outlook

Our markets in 2021

Plastics

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

Healthcare & Analytics

• Double digit growth expected in the upcoming months.
• Analytics and luggage scanners as main drivers

Energy Management

• Order intake indicates rising revenue dynamics in the second half year 2021.
• Market position for rail solutions is being further expanded continuously.

Print

• Ongoing revenue recovery expected.

Laser & Machine Tools

• Position is further stabilized by expanding existing business relationships.

Technical Documentation

• Further stabilization expected.

technotrans"

Outlook

Financial targets 2021: Forecast confirmed

Outlook

Medium-term planning 2025

Conclusion of the Board of Management

• The technotrans group performed well in the $\overline{\phantom{0}}$ first half of the year.
• Our strategy Future Ready 2025 proves to be $\qquad \qquad$ right and will be further implemented.
• The order situation indicates further growth. $\overline{\phantom{0}}$
• With regard to the situation on the supply $\overline{\phantom{0}}$ markets we will apply adequate measures.
• Forecasts 2021 and 2025 confirmed.

Peter Hirsch CTO/COO

Michael Finger CEO

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.

Consolidated Balance Sheet as of June 30, 2021

ASSETS	30/06/2021	31/12/2020
	€ '000	€ '000
Non-current assets
Property, plant and equipment	37,047	36,781
Right-of-use assets	2,713	3,210
Goodwill	23,513	23,513
Intangible assets	6,701	7,016
Other financial assets	146	151
Deferred tax	1,141	1.142
	71,261	71,813
Current assets
Inventories	29,618	26,702
Trade receivables	25,404	21,082
Income tax receivable	82	103
Other financial assets	1,618	546
Other assets	2,026	2,122
Cash and cash equivalents	17,768	25,749
	76,516	76,304
Total assets	147,77	148,117

EQUITY AND LIABILITIES	30/06/2021	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	$-6,733$	$-6.999$
Net profit for the period	3,458	4.956
Total equity attributable to technotrans SE shareholders	80,661	79,423
Non-controlling interests in equity		$-5$
	80,657	79,418
Non-current liabilities
Borrowings	28,030	31.043
Employee benefits	779	686
Other financial liabilities (incl. IFRS 16)	1,179	1.680
Deferred tax	300	448
	30,288	33,857
Current liabilities
Borrowings	7,774	12.960
Trade payables	8,506	4.606
Prepayments received	4,825	3,210
Employee benefits	6,222	5,309
Provisions	3,444	3,490
Income tax payable	929	274
Other financial liabilities (inkl. IFRS 16)	2,538	2.715
Other liabilities	2,594	2,278
	36,832	34.842
Total equity and liabilities	147,777	148,117

Annex

Consolidated Income Statement Jan 1 - June 30, 2021

	$01/04 - 30/06/2021$	01/04 - 30/06/2021	$01/01 - 30/06/2021$	01/01 - 30/06/2020
	€ '000	€ '000	$\epsilon$ '00	$\in$ '000
Revenue	51,602	42,977	104,43	95,138
of which Technology	38,76	32,451	77,7	71,535
of which Services	12,83	10,526	26,72	23,603
Cost of Sales	$-37,05$	$-31,080$	$-74,74$	$-68,312$
Gross profit	14,551	11,897	29,686	26,826
Distribution costs	$-5,946$	$-4,782$	$-11,83$	$-10,756$
Administrative expenses	$-5,04$	$-4,387$	$-9,940$	$-9,599$
Development costs	$-1,25$	$-1,504$	$-2,55$	$-3,936$
Net impairment losses/gains on financial and contract assets		$-23$		-99
Other operating income	40 °	288		1,310
Other operating expenses		$-427$	$-85$	$-928$
Earnings before interest and taxes (EBIT)	2,397	1,062	5,26	2,818
Financial income		14		14
Financial charges		$-174$	-32	$-341$
Net finance costs	$-155$	$-160$	$-32$	$-327$
Profit before tax	2,242	902	4,94	2,491
Income tax expense	$-674$	$-256$	$-1,48$	$-710$
Net profit for the period	1.568	646	3,459	1,781
of which:
Profit attributable to technotrans SE shareholders	1,568	646	3,458	1,781
Profit attributable to non controlling interests		$\Omega$		$\Omega$
Earnings per share $(\epsilon)$
basic / diluted	0.23	0.09	05	0.26

Annex

Consolidated Cash Flow Statement Jan 1 - June 30, 2021

$01/01 - 30/06/2021$ 01/01 - 30/06/2020

	€ '000	€ '000
Cash flow from operating activities
Net profit for the period	3,459	1.781
Adjustments for:
Depreciation and amortisation	3,530	3.498
Income tax expenses	1,483	710
Gain (-)/loss (+) on the disposal of property, plant and equipment	$-94$	$-16$
Foreign exchange losses (+)/gains (-)	296	$-116$
Net finance costs	32 ′	327
Other non-cash changes		Ω
Change in:
Inventories	$-2,917$	$-3,160$
Receivables and other current assets	$-5.297$	$-504$
Liabilities and prepayments	5.573	$-286$
Provisions and employee benefits	96'	1.333
Cash from operating activities	7,320	3,583
Interest received		14
Interest paid	$-27C$	$-300$
Income taxes paid/income tax rebates	$-90C$	$-568$
Net cash from operating activities	6,15'	2.729

	$01/01 - 30/06/2021$	$01/01 - 30/06/2020$
	€ '000	€ '000
Cash flow from investing activities
Cash payments for investments in property, plant and equipment and in intangible assets	$-2.595$	$-4.046$
Proceeds from the sale of property, plant and equipment	153	61
Net cash used for investing activities	$-2,442$	$-3,985$
Cash flow from financing activities
Cash receipts from the raising of short-term and long- term loans		7.750
Cash payments from the repayment of loans	$-8,200$	$-3.389$
Distribution to investors	$-2,487$	0
Cash payments from the repayment of lease liabilities	$-962$	$-1,189$
Net cash used in financing activities	$-11,649$	3,172
Net increase/decrease in cash and cash equivalents	$-7.940$	1.916
Cash and cash equivalents at start of period	25,749	20,910
Net effect of currency translation in cash and cash equivalents	-4	$-14$
Cash and cash equivalents at end of period	17,768	22,812

Profile of technotrans SE

The technotrans group

Core Competence:

customized thermal management solutions

Focus Markets:

Plastics. Healthcare & Analytics, Energy Management (E-Mobility, Data Centers), Print

Establishment/ IPO:

1970/1998

Locations: 17

The Second

worldwide

Employees: $1,409*$

* All figures as of Dec 31, 2020

Group revenue 2020:

€ 190.5 million

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

* Original Equipment Manufacturer

Range of products and services

Shareholder information

technotrans - an attractive investment

€ 220.7 $m$ $+27.8%$	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 %
Market Cap August 9, 2021	Dividend Policy	Shareholder structure

Equity story

• Profitable growth strategy

• Technological leadership

• Clear market focus
• Diversified customer base
• International network
• Sustainability commitment
• Attractive dividend policy

Strong share price performance

Date: August 9, 2021

- Share Price:	€ 31.80
- Market cap:	$\in$ 220.7 m

Performance since January 2021:

Share Price:	$+27.8%$
Markot cop.	$\left \right $ $\left \right $ $\left \right $ $\left \right $ $\left \right $ $\left \right $ $\left \right $ $\left \right $ $\left \right $ $\left \right $ $\left \right $ $\left \right $ $\left \right $

пиаткес сар:

40 U H

Current Analyst Recommendations: (Hauck und Aufhäuser AG,

Warburg Research GmbH, LBBW)

- Bandwidth:	$\in$ 32.00 - 33.00
- Recommendation:	3x buy