H2apex Group Sca · XETR:H2A

H2apex Group Sca — exceet Group — FY2018 Earnings Presentation

42 slides from H2apex Group Sca's earnings presentation, February 2019

  1. Slide 1: Company Presentation

    Company Presentation February 2019

  2. Slide 2: Business Overview

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

  3. Slide 3: Our Profile

    Our Profile Continued Basis exceet is a listed holding company investing in EUR million FY 2017 FY 2018 into structurally growing industries (like healthcare, software or technology). Net Sales 42.4 41.5 EBITDA 2.2 4.9 Key Elements EBITDA Margin 5.3% 11.8% 1) Existing activities with good developmen

  4. Slide 4: Our Segments (Continued Operations)

    Our Segments (Continued Operations) Reporting Segments* Competences End Markets* Application Examples ECMS Electronic Components, Modules & Systems Health Miniaturization  IoT  Hearing Aids 78%  PKI  Cochlea Implants Complexity  Cloud-Based  Implants Security 69% of group net sales  Telematic

  5. Slide 5: Activities

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

  6. Slide 6: Activities

    Activities ECMS (Healthcare) ESS (Software and IoT) Net Sales: EUR 32.6 million / EBITDA: 25.4% Net Sales: EUR 9.0 million / EBITDA: (6.2%) Electronic Components, Modules & Systems exceet Secure Solutions focuses on secure excels in manufacturing extremely reliable and solutions in the fields of IT

  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 - 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

  14. Slide 14: Recent Development

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis February 2019 | Page 14

  15. Slide 15: 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 investmen

  16. Slide 16: 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) 151 117 131 Debt 8.4% 42 11.8% 109 Capacity Margin Margin 10 5

  17. Slide 17: Business Model

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis February 2019 | Page 17

  18. Slide 18: 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

  19. Slide 19: 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 speaking Europe

  20. Slide 20: 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 ꟷ Permitting an entrepreneur to stay in charge No fundraising / investment / divestment whilst de-risking his position

  21. Slide 21: The New exceet – Unique Positioning

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

  22. Slide 22: Investment Focus

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis February 2019 | Page 22

  23. Slide 23: Areas of Investments

    Areas of Investments  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 companies – view

  24. Slide 24: Opportunities & Key Highlights

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis February 2019 | Page 24

  25. Slide 25: 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

  26. Slide 26: 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

  27. Slide 27: 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

  28. Slide 28: Financial Review & Analysis

     Business Overview  Activities  Recent Development  Business Model  Investment Focus  Opportunities & Key Highlights  Financial Review & Analysis February 2019 | Page 28

  29. Slide 29: Financial Highlights

    Financial Highlights Total Group Basis Total Group Basis ▪ Free Cash Flow EUR (1.0) million • Revenues are EUR 122.2 million (2017: EUR 4.6 million) driven by: Continued Operations Free ▪ Operational Cash Flow EUR 2.3 million Net (2017: EUR 8.3 million) Sales • Revenues are down (2.0%) to Cash EUR 4

  30. Slide 30: Net Sales Q4 2018 and Full year 2018

    Net Sales (in EUR 1’000) Q4 2018 (24'022) 34'638 (358) 162 10'616 10'258 10'420 Q4 2017 Q4 2017 Q4 2017 Organic growth Like for like FX Impact Q4 2018 Total Group Discontinued Continued Continued Basis Operations Operations Operations Full year 2018 (100'982) 143'383 318 (1'184) 42'401 42'719 41'535

  31. Slide 31: From EBITDA to Free Cash Flow (Continued Operations)

    From EBITDA to Free Cash Flow (Continued Operations) (in EUR 1’000) 653 (568) (393) (447) (1’688) 4'907 2’464 Reported EBITDA Non-cash items recorded Taxes paid Interest paid Change in NWC Net Capex Free Cash Flow 2018 above EBITDA 2018 ■ Free Cash Flow in 2018 EUR 2.5 million versus EUR 0.2 million

  32. Slide 32: Net (Debt) / Cash

    Net (Debt) / Cash (in EUR 1’000) 116’771 (4’423) 109’398 748 (7’927) 2’464 1’958 (140) (7’179) 31.12.2017 31.12.2017 31.12.2017 Operational FX Impact FX Impact Divestment Cash Out for 31.12.2018 Net Cash Net Cash Net Debt Free Cash Flow on cash on borrowings Cash in Discontinued Net Cash Total Group

  33. Slide 33: Lh ©exXCeEeT is exciting

    Lh ©exXCeEeT is exciting

  34. Slide 34: Annex

    Lc exceeft Annex February 2019 | Page 34

  35. Slide 35: 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

  36. Slide 36: 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

  37. Slide 37: Actual Shareholder Structure (27 February 2019)

    Actual Shareholder Structure (27 February 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 Elephan

  38. Slide 38: Consolidated Financials

    Consolidated Financials January – December 2017 & 2018 Income Statement (in EUR 1'000) Jan. - Dec. 2018 Jan. - Dec. 2017 Revenue 41'535 42'401 Cost of sales (31'627) (34'602) Gross profit 9'908 7'799 % margin 23.9% 18.4% Distribution costs (3'415) (4'006) Administrative expenses (4'472) (4'503) Othe

  39. Slide 39: Consolidated Financials

    Consolidated Financials 31 December 2017 / 30 December 2018 Assets (in EUR 1'000) 30 December 2018 31 December 2017 Tangible assets 9'295 26'528 Intangible assets 10'843 22'770 Deferred tax assets 599 1'233 Other financial investments 0 384 Inventories 3'872 30'033 Trade receivables, net 3'458 17'36

  40. Slide 40: Consolidated Financials

    Consolidated Financials January – December 2017 & 2018 Cash Flow Statement (in EUR 1'000) Jan. - Dec. 2018 Jan. - Dec. 2017 Earnings before taxes 54'783 (9'410) Depreciation, amortization & impairment charges 6'774 19'990 Financial income / (expenses), net (936) 663 Change of provisions 1'977 188 Ga

  41. Slide 41: Consolidated Financials

    Consolidated Financials January – December 2017 & 2018 Segment Information ECMS ESS Corporate & Continued Discontinued Eliminations Group Others Operations Operations Consolidation Jan. - Dec. Jan. - Dec. Jan. - Dec. Jan. - Dec. Jan. - Dec. Jan. - Dec. Jan. - Dec. (in EUR 1'000) 2018 2017 2018 2017

  42. Slide 42: 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 — FY2018 Earnings Presentation on 6ix