technotrans SE — Investor Presentation 2022

Mar 15, 2022

.

• Financial Year 2021
• : strategy into results
  • March 15, 2022

Agenda

• Business Performance
• Supply Chain Status
• Strategy Update Future Ready 2025
• Sustainability
• Outlook ।
• Conclusion of the Board of Management
• Contact/Disclaimer
• Annex
  • Consolidated Financial Statements
  • Shareholder Information

Strong Performance in 2021

Further KPI's financial year 2021

*) Main production sites

4.

5.

Highlights 2021

• 1. Financial performance
• 3.
  • • Sustainability
• 1. Strategy Future Ready 2025 V Increased in Segments and Group Focus markets Order situation V All ESG-KPI on track

For our customers' products we develop sustainable thermal management solutions.

Markets: Strategy 100 % on track

technotrans

Strong increase in Revenue & EBIT

Revenue (m€)

EBIT (m€)

• Group revenue increased by 11 % compared to the previous year

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

• EBIT rises by 63 %

• EBIT margin improves accordingly from 3.6 % to 5.2 %

Segment Technology

Revenue 2020/2021 by quarters (m€) *

EBIT 2020/2021 by quarters (m€) *

• Revenue 2021: 157 m€ (+ 11 %)

• Focus markets as growth drivers

• Segment EBIT of 3.1 m€ achieved (previous year: 0.1 m€)

• EBIT margin at 2.0 % (previous year: 0.1 %)

Segment Services

Revenue 2020/2021 by quarters (m€) *

• Revenue 2021: 54 m€ (+ 12 %)

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

• EBIT reaches 7.9 m€ (previous year: 6.7 m€)

• EBIT margin at 14.7 % (previous year: 13.8 %)

Balance Sheet and financial position

=> Continued strong Equity ratio

=> Leverage ratio further decreased

Solid financial position

Free cash flow (m€)

=> Free cash flow more than doubled.

Net working capital / Net working capital ratio (m€)

=> Increased, partly due to build-up of safety stocks.

Supply Chain Status

Supply chain - current situation

Supply Chain Status

Supply chain - challenges

Requirements for purchasing department and production planning remained demanding

Success

The material supply of the production could be ensured continuously in 2021

• Due to a close cooperation of planning, purchasing and production a high sales volume could be realized
• Occurring delivery gaps could be closed at short notice
• Material price increases could be passed on to customers
• Cost of sales/material costs ratio remained almost constant

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

All strategic mergers completed

The new technotrans umbrella brand strengthens the company's perception as a strong and reliable technology partner in the field of thermal management

Group wide synergies

Expansion of group wide synergies improved cost structure

• Despite higher material costs, the personnel cost ratio decreased by 1.2 % in the cost of sales
• Despite higher sales, the number of FTE* decreased by 1.3 % compared to the previous year
• Revenue per employee increased by 12.1 %

* FTE: Average full time equivalent

ESG Highlic

February Startup of new production building at Holzed as K1W 55 energy-efficient building with a 99 kWp PV system.

March Market launch of ECOtec.chiller, highly efficient xtend variant for environmentally conscious customers.

August Conversion of the padding and packaging materials at Sassenberg to single-origin recyclable materials.

October

Staffing to the new Sustainability Management department and presentation of the highly efficient teco ci eco series of temperature control units from technotrans solutions at Fakuma.

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November

Completion of the group-wide carbon footprint survey for 2020 as the basis for reporting Scope 1 and 2-emissions for 2020 and 2021 in this Annual Report.

December

Joining the UN Global Compact, the world's largest and most initiative for sustainable and responsible corporate governance. In addition, procurement of guarantees of origin for renewable electricity from European wind farms.

Sustainability

SESG-KPIs 202

Fuel consumption *

28%

compared to base year target: - 5 % p.a. on average

Personnel development * 18 % --

growth, target value exceeded | target: increase of 5 % p.a.

Currently 41 %

renewable power I torget: 100 % "green power"

Diversity 20.2 %

constant share l target: at least 20 %

Recyclable Recycloie
pockaging material 2 Off 7 locations adapted | target: 100 %

*Base year 2019

Outlook

Our markets in 2022

Plastics

– Growth expected through enhanced sales and technical competence of new, enerqy efficient solutions

Energy Management

• Growth boost in E-Mobilty (rail and road) expected
• Position at rail OEM to be further expanded

Healthcare & Analytics

• -
• -

Print

• Continued brightening of OEM and end user business leading to stable revenues

Laser & Machine Tools

• Selective market approach with focus on precise cooling solutions will generate an ongoing sustainable growth trend

Technical Documentation

• Focus on digitalization and sustainability will drive stable revenue generation

Outlook

technotrans®

Conclusion of the Board of Management

power to transform strategy into results

technotrans achieved very good results in 2021 despite increased challenges.

We thank our employees for their extraordinary commitment.

We have a strong order book. However, uncertainty has increase as well.

We will proceed consistently to implement our Future Ready 2025 strategy in 2022.

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.

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: Annex

Consolidated Balance Sheet as of December 31, 2021

ASSETS	31/12/2021	31/12/2020
	€ '000	€ '000
Non-current assets
Property, plant and equipment	36.212	36 781
Right-of-use assets	2.476	3.210
Goodwill	23.513	23.513
Intangible assets	6.001	7.016
Other financial assets	168	151
Deferred tax	1.186	1.147
	69.556	71.813
Current assets
Inventories	33.696	26.702
Trade receivables	21.617	21.082
Income tax receivable	589	103
Other financial assets	590	546
Other assets	2.498	2.122
Cash and cash equivalents	18.651	25.749
	77.641	76.304
Total assets	147.197	148.117

EQUITY AND LIABILITIES	31/12/2021	31/12/2020
	€ '000	€ '000
Equity
Issued capital	6.908	6.908
Capital reserve	19.097	19.097
Retained earnings	57.935	55.461
Other reserves	-6.180	-6.999
Net profit for the period	7.020	4.956
Total equity attributable to technotrans SE shareholders	84.780	79.423
Non-controlling interests in equity		-5
	84.776	79.418
Non-current liabilities
Borrowings	24.803	31.043
Employee benefits	608	686
Other financial liabilities (incl. IFRS 16)	1.164	1.680
Deferred tax	1.216	448
	27.791	33.857
Current liabilities
Borrowings	6.670	12.960
Trade payables	6.016	4.606
Prepayments received	5.725	3.210
Employee benefits	5.538	5.309
Provisions	3.963	3.490
Income tax payable	1.530	274
Other financial liabilities (inkl. IFRS 16)	2.530	2.715
Other liabilities	2.658	2.278
	34.630	34.842
Total equity and liabilities	147.197	148.117

Consolidated Financial Statements

Consolidated Income Statement Jan 1 - Dec. 31, 2021

	2021	2020
	€ '000	€ '000
Revenue	211.102	190.454
of which Technology	156.890	141.916 *
of which Services	54.212	48.538 *
Cost of Sales	-150.623	-137.012
Gross profit	60.479	53.442
Distribution costs	-24.363	-21.226
Administrative expenses	-20.265	-18.375
Development costs	-4.959	-7.347
Net impairment losses on financial and contract assets	21	-165
Other operating income	1.521	1.511
Other operating expenses	-1.404	-1.060
Earnings before interest and taxes (EBIT)	11.030	6.780
Financial income	23	86
Financial charges	-641	-746
Net finance costs	-618	-660
Profit before tax	10.412	6.120
Income tax expense	-3.391	-1.163
Net profit for the period	7.021	4.957
of which
Profit attributable to technotrans SE shareholders	4.956	6.088
Profit attributable to non-controlling interests
Earnings per share (€)
basic / diluted	1.02	0,72

* Adjustment of previous year's figures due to reclassifications of revenues from the initial installation of equipment from Services to Technology.

Consolidated Financial Statements

Consolidated Cash Flow Statement Jan 1 – Dec. 31, 2021

	2021	2020		2021	2020
	€ '000	€ '000		€ '000	€ '000
Cash flow from operating activities			Cash flow from investing activities
Net profit for the period	7.021	4.957	Cash payments for investments in property,	-3.709	-8.412
Adjustments for:			plant and equipment and in intangible assets Proceeds from the sale of property, plant and
Depreciation and amortisation	7.038	7.069	equipment	230	100
Income tax expenses	3.39	1.163	Net cash used for investing activities	-3.479	-8.312
Gain (-)/loss (+) on the disposal of property, plant and equipment	-30	-49
Foreign exchange losses (+)/gains (-)	593	-320
Net finance costs	618	660	Cash flow from financing activities
Other non-cash changes	-190	-202	Cash receipts from the raising of short-term and long-term loans		10.500
Cash flow from operating activities before	18.432	13.278	Cash payments from the repayment of loans	-12.53	-6.696
working capital changes			Distribution to investors	-2.487	O
			Cash payments from the repayment of lease ligbilities	-1.980	-2.620
Change in:			Net cash used in financing activities	-16.998	1.184
Inventories	-6.994	1.555
Receivables and other current assets	-97	2.983
Liabilities and prepayments	4.752	-3.856	Net increase/decrease in cash and cash equivalents	-7.043	5.099
Provisions and employee benefits	632	-370	Cash and cash equivalents at start of period	25.749	20.910
Cash from operating activities	15.851	13.590	Net effect of currency translation in cash and		-260
			cash equivalents
Interest received		34	Cash and cash equivalents at end of period	18.651	25.749
Interest paid	-523	-659
Income taxes paid/income tax rebates	-1.897	-738
Net cash from operating activities	13.434	12.227

Shareholder information

technotrans - an attractive investment

204 m€ + 18.0 %	up to 50 % of consolidated net profit	Luxempart S.A.: 20.1 % Gerlin N.V .: 7.6 % Objectif Small Cap 5.3 % MidlinN.V. 5.2 % Allianz Vie 5.1 % Universal Investment 3.1 % MONOLITH 5.0 % Freefloat 48.6 %
Market Cap December 31, 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

Share price performance

Data as of December 31, 2021

- Share Price:	29.50 €
- Market cap:	204 m€

Performance Jan. - Dec. 2021

Share Price:	+ 18.0 %

• Market cap:

Analyst Recommendations Hauck und Aufhäuser AG Warburg Research GmbH Kepler Cheuvreux LBBW

• Price Bandwidth: 33.00 - 38.00 € - Recommendation: 4 x BUY