H2apex Group Sca · XETR:H2A

H2apex Group Sca — exceet Group — Q1 2017 Earnings Presentation

38 slides from H2apex Group Sca's earnings presentation, May 2, 2017

1. Slide 1: Company Presentation May 2017

   Company Presentation May 2017

2. Slide 2: Agenda

    Business Model  Selected Applications & Operational Highlights  Financial Review & Analysis  Growth Potential & Group Strengths 2 exceet Group | May 2017

3. Slide 3: Our Profile

   Our Profile exceet is an international technology (in EUR million) FY 2015 FY 2016 3M 2016 3M 2017 group specialized in development and production of intelligent, complex and Net Sales 136.4 135.3 31.5 35.4 secure electronics. EBITDA 10.0 8.1 1.8 1.9 EBITDA Margin 7.3% 6.0% 5.7% 5.4% exceet is focus

4. Slide 4: Our Activities

   Our Activities Electronic Manufacturing Embedded & Box Building Systems Sensors Software Printed Circuit Boards Trust Center smart & secure electronics Value Engineering Applications Devices SOLUTIONS GRC Consulting Connectivity IoT Platform IoT Security 4 exceet Group | May 2017

5. Slide 5: Our Segments

   Our Segments Reporting Segments* Competences End Markets* Application Examples ECMS  Hearing Aids Electronic Components, Modules & Systems  Diagnostic Devices Miniaturization Health  Wearables  Implants 93% Certified Box-  Telematic Building Infrastructure &  IoT Applications  PKI 43% of grou

6. Slide 6: Agenda

    Business Model  Selected Applications & Operational Highlights  Financial Review & Analysis  Growth Potential & Group Strengths 6 exceet Group | May 2017

7. Slide 7: Health - Body Wearable Electronics

   Health - Body Wearable Electronics Miniaturized, complex, durable electronics for highest medical requirements Strategic focus Electronics in sophisticated applications  Focus on miniaturized electronics for Hearing Aid EEG sophisticated applications in life Body Area Network Smart Implants support

8. Slide 8: Health - Body Wearable Electronics

   Health - Body Wearable Electronics exceet as a full-service partner along the entire value chain Store Wearable Monitor securely Device developed and manufactured by exceet Mobile monitoring APP Secure cloud storage Highlights Advantages for customers / users  exceet will develop and manufacture 

9. Slide 9: Health - Implantable Cardioverter Defibrillator

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

10. Slide 10: Industry - Services for Microchip Placement

    Industry - Services for Microchip Placement From Wafer to End Product within 8 Weeks Description Advantages for Customers  Competitive advantages and short time to  exceet expanded value chain in a market thanks to exceets’ short delivery microchip placement and offers state-of- times the-art prod

11. Slide 11: Industry - Multi-Channel Optic Transceiver

    Industry - Multi-Channel Optic Transceiver Fast data communication – especially in small spaces Optical signal Multi-Channel optical transceiver Electronic signal Description Advantages for customers / users  Optical signals are converted to electrical  Reduction of cost and space in the field of

12. Slide 12: Industry - Electronics for Building Automation

    Industry - Electronics for Building Automation Description Advantages for customers / users  Ventilation in rented apartments can be  Control unit & display for ventilating system centrally controlled by the custodian or for controlled ventilation of energy efficient owner house building - Prevent

13. Slide 13: Industry - Lighting Solutions

    Industry – Lighting Solutions LED lighting for harsh environments Description Advantages for customers / users  Coating and encapsulation (pressure LED control system for various applications: resistant)  Engineering and production  High light output  State-of-the-art facility  Thermal manageme

14. Slide 14: IoT - exceet Offering

    IoT – exceet Offering Market Requirements exceet Offers Access-, Personalization- & Payment Solutions Consulting Hardware Software Services  secure authentification & identification  PKI solutions (Public-Key-Infrastructures)  data integrity & confidentiality  HSMs (Hardware-Security-Modules) –

15. Slide 15: IoT - Devices for M2M Solutions

    IoT - Devices for M2M Solutions exceet communication box supplements the control system of one of the largest car wash groups in Europe Description Advantages for customers / users  Selection and realization of a costumer  Just in time information about car wash use, specific pilot IoT Platform fo

16. Slide 16: IoT - Industrial Solutions

    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 and machine t

17. Slide 17: Agenda

     Business Model  Selected Applications & Operational Highlights  Financial Review & Analysis  Growth Potential & Group Strengths 17 exceet Group | May 2017

18. Slide 18: Financial Highlights

    Financial Highlights ▪ Free Cash Flow EUR (3.9) million (Q1 2016: EUR (1.9) million) driven by: • Revenues are up 12.4% ▪ Operational Cash Flow EUR (2.9) million to EUR 35.4 million Free (Q1 2016: EUR (0.3) million) Net (Q1 2016: EUR 31.5 million) Cash ▪ Capex of EUR 1.0 million Sales ▪ Organic grow

19. Slide 19: Net Sales & EBITDA

    Net Sales & EBITDA (in EUR 1’000) 3'615 286 Net Sales 35’115 35’401 31’500 Actual Organic growth Like for like FX Impact Scope changes Actual Q1 2016 Q1 2017 92 15 EBITDA 1’803 1’895 1'910 Actual Organic growth Like for like FX Impact Scope changes Actual Q1 2016 Q1 2017 FX rate EUR/CHF: Actual 3M 2

20. Slide 20: Net Sales by Countries 2016

    Net Sales by Countries 2016 (in EUR 1’000) 8% Germany 24% Switzerland 41% Austria 9% 53% The Netherlands 39% 6% Others 19% 20 exceet Group | May 2017

21. Slide 21: From EBITDA to Free Cash Flow

    From EBITDA to Free Cash Flow (in EUR 1’000) (200) 1'910 (811) (212) (3’624) (3'940) (1'003) Reported EBITDA Non-cash items Taxes paid Interest paid Change in NWC Net Capex Free Cash Flow recorded above EBITDA ■ Free Cash Flow in Q1 2017 EUR (3.9) million versus EUR (1.9) million in Q1 2016 ■ Main F

22. Slide 22: Net Debt

    Net Debt (in EUR 1’000) (101) (98) (147) 3'940 9'011 5’417 Actual Free Cash Flow FX Impact FX Impact Others Actual Q4 2016 (outflow) on cash on borrowings Q1 2017 Borrowings 36'291 Borrowings 32'033 Cash (30'874) Cash (23'022) Net Debt 5'417 Net Debt 9'011 ■ Net Debt increase in Q1 2017 by EUR 3.6 m

23. Slide 23: Net Working Capital

    Net Working Capital (in EUR million) 114.0 70 120.0 110.2 103.6 104.7 104.1 105.2 110.0 98.3 98.6 60 91.7 96.1 95.2 Trade payables Inventories 92.9 100.0 85.9 82.3 90.0 50 78.9 Other current liabilities 80.0 40 Accrued expenses / deffered income 70.0 60.0 Current income 30 tax liabilities 50.0 40.0

24. Slide 24: Agenda

     Business Model  Selected Applications & Operational Highlights  Financial Review & Analysis  Growth Potential & Group Strengths 24 exceet Group | May 2017

25. Slide 25: Growth Potential

    Growth Potential ▪ Exploit fragmented market structure ▪ Leverage customer ▪ Enhance value chain coverage relationships Market Existing Consolidation Customers ▪ Expansion of ▪ Extend customer base technological through new healthcare capabilities applications e.g. Ultra HDI ▪ e.g. medical implants

26. Slide 26: Group Strengths

    Group Strengths Strong skills in development & manufacturing of miniaturized electronic components, Miniaturization modules & systems Specialist with many years of experience in development and manufacturing of Health complete medical devices and experienced Partner for FDA approvals & certification

27. Slide 27: exceet is exciting

    Lh exceet is exciting

28. Slide 28: Annex

    Annex 28 exceet Group | May 2017

29. Slide 29: History of exceet

    History of exceet 2006 2008 2009 2010 2011 2012 2014 2015 Add-on acquisitions Acquisition of Merger with Acquisition of Acquisition of Acquisition of Acquisition of Foundation of ECR AG Mikrap AG and Card Factory Winter AG and AuthentiDate Inplastor Gmbh Valtronic exceet USA, Inc. and GS AEMtec GmbH

30. Slide 30: Top Customers

    Top Customers Top 10 Customer = 43% of total Sales Selected References Customer Revenue in EUR million CERN PHILIPS COCHLEAR PHONAK Industry 12.2 DELPHI RITTAL Health 10.2 DORNIER ROCHE FERAG SANDOZ Health 9.1 FRANCE TELECOM SCHAEFFLER Health 7.0 GANTNER SIEMENS GE SONY Industry 5.0 GN RESOUND T SYS

31. Slide 31: Production & Engineering Sites

    Production & Engineering Sites ECMS ESS Berlin, D ① Düsseldorf, D ⑦ Design, development, industrialization Software, services (cloud services) and and series production for high-end complex consulting for secure business processes electronic and electrooptical systems Großbettlingen, D ② Zirndorf, D

32. Slide 32: Shareholder Structure

    Shareholder Structure 1) Acrema AG (Hans Hofstetter) 1.1% Roland Lienau 0.3% exceet Group (treasury shares) 2.2% Jan Trommershausen (Mgmt) 0.2% Argos Funds and Quaero Funds 8.8% Other Shareholders 25.7% Issued Shares: Oranje-Nassau Participaties B.V. (Wendel) 27.8% 20’523’695 Greenock S.à r.l. 33.9%

33. Slide 33: Actuals

    Actuals Net Sales (EUR million) Organic Growth Rate (%) 22.7% 145.1 135.9 137.0 136.4 135.3 125.4 11.5% 2.5% 3.2% 4.4% 3.7% 0.5% (0.2%) 35.6 33.5 33.1 34.2 31.5 33.9 34.4 35.5 35.4 (6.0%) (8.2%) (8.7%) (8.7%) (11.7%) (11.0%) (14.3%) Recurring EBITDA (EUR million)1) Recurring EBITDA Margin (%)1) 22.5

34. Slide 34: Consolidated Financials January – March 2016 & 2017

    Consolidated Financials January – March 2016 & 2017 Income Statement (in EUR 1'000) Jan. - Mar. 2017 Jan. - Mar. 2016 Revenue 35'401 31'500 Cost of sales (31'017) (26'723) Gross profit 4'384 4'777 % margin 12.4% 15.2% Distribution costs (2'450) (2'345) Administrative expenses (2'036) (2'692) Other o

35. Slide 35: Consolidated Financials December 2016 / March 2017

    Consolidated Financials 31 December 2016 / 31 March 2017 Assets (in EUR 1'000) 31 March 2017 31 December 2016 Tangible assets 28'795 29'086 Intangible assets 38'090 38'551 Deferred tax assets 1'396 1'206 Other non current assets 1'142 1'517 Inventories 30'769 28'657 Trade receivables, net 22'654 18'

36. Slide 36: Consolidated Financials January – March 2016 & 2017

    Consolidated Financials January – March 2016 & 2017 Cash Flow Statement 1) (in EUR 1'000) Jan. - Mar. 2017 Jan. - Mar. 2016 Earnings before taxes (284) (73) Depreciation, amortization & impairment charges 1'895 1'992 Financial income / (expenses), net 204 187 Change in fair value in financial instru

37. Slide 37: Consolidated Financials: Segment Information

    Consolidated Financials January – March 2016 & 2017 Segment Information 1) ECMS ESS Corporate & Eliminations Group Others Consolidation Jan. - Mar. Jan. - Mar. Jan. - Mar. Jan. - Mar. Jan. - Mar. (in EUR 1'000) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Net Sales 32'846 29'849 2'556 1'659 57

38. Slide 38: 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 2017 Earnings Presentation on 6ix