H2apex Group Sca · XETR:H2A

H2apex Group Sca — exceet Group — Q1 2019 Earnings Presentation

43 slides from H2apex Group Sca's earnings presentation, May 2019

  1. Slide 1: Company Presentation

    Company Presentation May 2019

  2. Slide 2: Agenda

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis May 2019 | Page 2

  3. Slide 3: Our Profile

    Our Profile exceet is a listed holding company investing Continued Basis into structurally growing industries in EUR million FY 2017 FY 2018 3M 2018 3M 2019 (like healthcare, software or technology). Net Sales 42.4 41.5 10.2 11.9 EBITDA 2.2 4.9 0.7 2.1 Key Elements EBITDA Margin 5.3% 11.8% 7.4% 17.9

  4. Slide 4: Our Segments

    Our Segments Reporting Segments 1) Competences End Markets 1) Application Examples Healthcare Health Miniaturization  IoT  Hearing Aids 78%  PKI  Cochlea Implants Complexity  Cloud-Based  Implants Security 70% of group net sales  Telematic Services Software Infrastructure &  Secure Reliabili

  5. Slide 5: Agenda

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis May 2019 | Page 5

  6. Slide 6: Activities

    Activities Healthcare Software (including IoT) Net Sales: EUR 32.6 million / EBITDA: 25.4% Net Sales: EUR 9.0 million / EBITDA: (6.2%)  Healthcare excels in manufacturing extremely  Software activities are actually focused on secure reliable and highly miniaturized flex, rigid-flex and solutions i

  7. Slide 7: Health - Implantable Cardioverter Defibrillator

    Health - Implantable Cardioverter Defibrillator Development & Production of highly miniaturized, extremely durable PCBs 4-Layer Rigid-Flex Board by exceet Newest generation of Implantable Cardioverter Defibrillator Description Advantages for customers / users  exceet provides the PCB for a subcutan

  8. Slide 8: Health - Cochlea Hearing Aids

    Health - Cochlea Hearing Aids Development & Production of highly miniaturized, extremely durable PCBs Description Advantages for customers / users  Development and manufacturing of printed  Can be used already in infancy - enables circuit board (PCB) for implants participation in social life and p

  9. Slide 9: Innovation – Ultra HDI Printed Circuit Boards

    Innovation – Ultra HDI Printed Circuit Boards New market possibilities due to innovative technological progress Katheter Eye Sensors Ultra-Sonic X-Ray Description Advantages for customers / users  Very small features (line width and space down to 10µm/10µm and below)  Higher resolution with better

  10. Slide 10: Industrial IoT - Devices for M2M Solutions

    Industrial IoT - Devices for M2M Solutions Charging solutions for electric vehicles Remote service via VPN service portal Description Advantages for customers / users  Transparent remote service  Simple, safe and scalable solution for recharging electric cars  Automatic configuration of devices 

  11. Slide 11: Industrial IoT - Industrial Solutions

    Industrial IoT - Industrial Solutions Intelligent & secure networking of machine tools Description Advantages for customers / users  Selection and realization of a costumer  Comprehensive, real-time machine tool specific pilot IoT Platform for networking of data available at different locations an

  12. Slide 12: Industrial IoT - Devices for M2M Solutions

    Industrial IoT - Devices for M2M Solutions Contour monitoring for transport containers and boxes for one of the largest automotive suppliers in Europe Description Advantages for customers / users  Light curtain system and analysis  Optimal and trouble-free transport  Contour check monitoring  He

  13. Slide 13: Industrial IoT - Secure Edge Computing

    Industrial IoT - Secure Edge Computing The Power of Edge Computing with your own Apps near the device Edge Fog Cloud Pay per Use Predictive Data Storage Maintenance Description Advantages for customers / users  IoT Gateway with hardware based security  Managed IoT Stack for secure edge  Simple, s

  14. Slide 14: Industrial IoT - exceet connect

    Industrial IoT - exceet connect Secure, scalable & modular solution Secure Device Management Maximum secure management of industrial IoT devices by hardware based cryptography Data encryption in the cloud Managed Service for hardware based data encryption in the cloud & cloud applications Identity M

  15. Slide 15: Agenda

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis May 2019 | Page 15

  16. Slide 16: Situation Backdrop

    Situation Backdrop OWNERSHIP CHANGE / THE ORIGINS THE FUTURE AHEAD REFOCUS  2006: Founded as a private equity  Majority acquisition by AOC after  The group continues to develop the backed buy-and-build investment detailed analysis of the existing existing activities and to make new activities inv

  17. Slide 17: Recent Development

    Recent Development PRIOR REFOCUS POST REFOCUS from Q4 2018  Listed investment firm focusing on structurally  Electronics conglomerate growing industries  Current activities with substantial healthcare focus (in EUR million) (in EUR million) 151 117 123 Debt 8.4% 43 14.5% 110 Capacity Margin Margi

  18. Slide 18: Agenda

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis May 2019 | Page 18

  19. Slide 19: The New exceet – AOC as majority Shareholder

    The New exceet – AOC as majority Shareholder Active Ownership as new majority shareholder of exceet: 56.2% of the shares Board with complimentary skillset  Klaus Röhrig Chairman AOC (Founder)  Florian Schuhbauer AOC (Founder)  Jan Klopp AOC  Andreas Füchsel (1) DLA Piper  Roland Lienau Wendel G

  20. Slide 20: The New exceet – Circle of Competences

    The New exceet – Circle of Competences  Network of industry experts  Value accretive capital allocation on  Large "library" of potential investments the group level including potential  Thematic primary research buybacks Unique deal Focus on generation value capabilities creation  German speaki

  21. Slide 21: The New exceet – Structural Advantages

    The New exceet – Structural Advantages PERPETUAL CAPITAL PARTNERSHIP APPROACH  Permits long-term and indefinite investment  Enables structures that put the entrepreneur first horizon  Permitting an entrepreneur to stay in charge  No fundraising / investment / divestment whilst de-risking his pos

  22. Slide 22: The New exceet – Unique Positioning

    The New exceet – Unique Positioning EXCEET Unique structure Entrepreneurial experience and mindset Differentiated investment approach  Capability to hold assets  Extensive management and board room  Access to off-market deal flow indefinitely expertise  Prudent approach to leverage  Capital mar

  23. Slide 23: Agenda

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis May 2019 | Page 23

  24. Slide 24: Areas of Investments and Targets

    Areas of Investments and Targets  Focus on German speaking Europe and Western Europe  Established players with a leading position and stable client base  Focus on structurally growing industries (healthcare, software or technology)  Industry leading operating profit margins for established compa

  25. Slide 25: Agenda

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis May 2019 | Page 25

  26. Slide 26: Attractive Opportunities

    Attractive Opportunities Large Underpenetrated Market The next European Champions ■ SME Succession Issues: c. 5,000 companies with ■ Benefiting from structural growth drivers > EUR 10 million revenue consider a sale to a third party ꟷ Digitization across all industries acquirer in Germany alone in t

  27. Slide 27: Structural Growth Drivers

    Structural Growth Drivers Digitisation across all Software and IT market industries Healthcare market growth developments ■ Low digitisation except in ■ Aging population: Ratio of ■ Strong growth in the Software- knowledge intensive sectors people >65 relative to those as-a-service markets (ICT, med

  28. Slide 28: Key Highlights

    Key Highlights Existing activities Perpetual capital with good development potential and with differentiated investment approach high cash conversion Partnership approach and Average increase of the intrinsic value entrepreneurial mindset by at least 15% of potential new with support capabilities fo

  29. Slide 29: Agenda

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis May 2019 | Page 29

  30. Slide 30: Financial Highlights

    Financial Highlights ▪ Free Cash Flow EUR 0.5 million • Revenues are up (17.2%) to (Q1 2018: EUR 0.8 million) driven by: EUR 11.9 million Free ▪ Operational Cash Flow EUR 1.1 million Net (Q1 2018: EUR 10.2 million) (1Q 2018: EUR 1.1 million) Sales Cash ▪ Organic growth: 14.3% ▪ Capex of EUR 0.6 mill

  31. Slide 31: Net Sales & EBITDA

    Net Sales & EBITDA (in EUR 1’000) 292 1’455 Net Sales 11’608 11’900 10’153 Actual Organic growth Like for like FX Impact Scope changes Actual Q1 2018 Q1 2019 52 EBITDA 1’332 2’081 2’133 749 Actual Organic growth Like for like FX Impact Scope changes Actual Q1 2018 Q1 2019 FX rate EUR/CHF: Actual 3M

  32. Slide 32: From EBITDA to Free Cash Flow

    From EBITDA to Free Cash Flow (in EUR 1’000) 54 (411) (28) (588) 2'133 (641) 519 Reported EBITDA Non-cash items recorded Taxes paid Interest paid Change in NWC Net Capex Free Cash Flow Q1 2019 above EBITDA Q1 2019 ■ Free Cash Flow in Q1 2019 EUR 0.5 million versus EUR 0.8 million in Q1 2018 ■ Main F

  33. Slide 33: Net Cash

    Net Cash (in EUR 1’000) (29) (98) 868 (243) 109’896 109’398 Actual Free Cash Flow FX Impact FX Impact Others Actual YE 2018 (outflow) on cash on borrowings Q1 2019 Borrowings (3,790) Borrowings (3,669) Cash 113,188 Cash 113,565 Net Cash 109,398 Net Cash 109,896 ■ Net Cash increased in Q1 2019 by EUR

  34. Slide 34: Lh ©XxXCeE|T is exciting

    Lh ©XxXCeE|T is exciting

  35. Slide 35: Annex

    exceet Annex May 2019 | Page 35

  36. Slide 36: Market Opportunity (1/2)

    Market Opportunity (1/2) Succession Issues (Germany) Opportunities and Challenges for SMEs ■ C. 511,000 companies are planning for succession „A good one in four small and medium-sized in Germany within the next five years enterprises have expanded their digitalisation in the past three years.[..] G

  37. Slide 37: Market Opportunity (2/2)

    Market Opportunity (2/2) The Listed SME Universe in Western Europe Characteristics of Listed SMEs ■ Often market leaders in their specific niches, but too small to be recognized by larger investors ■ Target countries have ~1,100 public companies of ■ Often misunderstood and undervalued as a target s

  38. Slide 38: Actual Shareholder Structure (26 April 2019)

    Actual Shareholder Structure (26 April 2019) 1) VM Holding GmbH & Co. KG 5.6% exceet Group (treasury shares) 2.2% Roland Lienau 0.2% Heidelberger Beteiligungsholding AG 7.4% Wolf-Günter Freese 0.1% Other Shareholders 15.5% Argos Funds and Quaero Funds 12.8% Issued Shares: 20’523’695 White Elephant S

  39. Slide 39: Consolidated Financials January – March 2018 & 2019

    Consolidated Financials January – March 2018 & 2019 Income Statement (in EUR 1'000) Jan. - Mar. 2019 Jan. - Mar. 2018 Revenue 11,900 10,153 Cost of sales (8,653) (8,160) Gross profit 3,247 1,993 % margin 27.3% 19.6% Distribution costs (849) (892) Administrative expenses (1,050) (1,050) Other operati

  40. Slide 40: Consolidated Financials

    Consolidated Financials 31 December 2018 / 31 March 2019 Assets (in EUR 1'000) 31 March 2019 31 December 2018 Tangible assets 7,643 9,295 Right-of-use assets 1) 3,418 0 Intangible assets 10,710 10,843 Deferred tax assets 809 599 Inventories 3,778 3,872 Trade receivables, net 5,462 3,458 Contract ass

  41. Slide 41: Consolidated Financials January – March 2018 & 2019

    Consolidated Financials January – March 2018 & 2019 Cash Flow Statement (in EUR 1'000) Jan. - Mar. 2019 Jan. - Mar. 2018 Earnings before taxes 461 37 Depreciation, amortization & impairment charges 751 673 Financial income / (expenses), net 37 77 Change of provisions 39 70 Other non-cash items, net

  42. Slide 42: Consolidated Financials January – March 2018 & 2019

    Consolidated Financials January – March 2018 & 2019 Segment Information Healthcare Software Corporate & Eliminations Group (incl. IoT) Others Consolidation Jan. - Mar. Jan. - Mar. Jan. - Mar. Jan. - Mar. Jan. - Mar. (in EUR 1'000) 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Net Sales 9,211 7,8

  43. Slide 43: Disclaimer & Contact

    Disclaimer & Contact This presentation contains forward-looking statements based on beliefs of exceet Group SE management. Such statements reflect current views of exceet Group SE with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially

exceet Group — Q1 2019 Earnings Presentation on 6ix