Slides
Page 1
Bergisch Gladbach, 12 August 2025 Presentation of H1 2025 results 1
Page 2
Agenda Business & Financial Performance H1 202501 Performance of Business Segments H1 202502 03 Guidance confirmed 04 Strategy update: EMPOWERING MITTELSTAND 06 Who we are 07 What sets us apart 08 Empowering M&A Appendix: Segment and Group Overview by Quarter05 For further reading
Page 3
3 Business and Financial Performance H1 2025 01
Page 4
4 Sales on previous year‘s level despite economic uncertainty Highlights INDUS Group H1 2025 • Five add-on acquisitions in 2025, thereof four in H1 25 • H1 sales (EUR 836.6 million) almost at previous year's level despite continuing weak economy • Q2 sales (EUR 434.2 million) stronger than in the previous year • US tariffs, Chinese export controls and weak dollar weigh on adjusted EBITA (EUR 56.1 million) • Earnings per share at EUR 1.13 • INDUS places promissory note loan of EUR 125 million • Forecast confirmed: Sales of EUR 1.70-1.85 billion, adjusted EBITA of EUR 130-165 million Free Cash Flow above EUR 90 million
Page 5
5 Growing incoming orders in difficult markets INDUS Group H1 2025 Incoming orders (EUR million) Order backlog (EUR million) Q1 25 Q2 25 455.1 Q1 24 Q2 24 443.3 827.8 H1 2025 901.4 H1 2024 384.5 446.3 +9% +3% +16% 31.12.2024 30.06.2025 665.2636.6 +4.5%
Page 6
6 Gradually improving market dynamics expected in H2 INDUS Group H1 2025 Q1 25 Q2 25 402.4 Q1 24 Q2 24 410.1 839.1 H1 2025 836.6 H1 2024 429.0 434.2 -0.3% -1.9% +1.2% Sales (EUR million) FY 2024 FY 2025 1,721.8 Outlook 2025 (EUR million) 1.7 – 1.85 bn EUR
Page 7
7 Gradually improving market dynamics expected in H2 INDUS Group H1 2025 Q1 25 Q2 25 24.9 Q1 24 Q2 24 31.5 73.9 H1 2025 56.1 H1 2024 42.4 31.2 -24.1% -21.0% -26.4% 7,7% 6,2% 9,9% 7,2% 8,8% 6,7% adj. EBITA (EUR million) FY 2024 FY 2025 153.7 8,9% Outlook adj. EBITA 2025 (EUR million) / (%) 130 – 165 7.5 – 9.0 %
Page 8
8 Lower earnings and Working Capital dynamics affecting Free Cash Flow Free Cash Flow INDUS Group H1 2025 Q1 2024 Q2 2024 YTD Q3 2024 YTD Q4 2024 YTD Q1 2025 6.1 41.2 71.9 135.4 -23.6 Q2 2025 YTD Q3 2025 YTD Q4 2025 YTD -7.9 +35.1 +30.7 +63.5 +15.7 • Increasing operational results and seasonal Working Capital dynamics will have an increasing effect on Free Cash Flow in the second half of 2025 H1 2025 H1 2024 Operating cash flow 13.2 53.3 • Cash outflow from investments in existing portfolio -35.8 -30.6 • Cash outflow for investment in shares in fully consolidated companies 14.7 18.5 Free Cash Flow -7.9 41.2 Outlook > 90 m EUR
Page 9
H1 2024 H1 2025 41.2 -7.9 <-100% 9 Solid balance sheet for future growth Free Cash Flow, net debt and equity ratio Free Cash Flow (EUR million) Net debt (EUR million) Equity ratio (%) 635.1 541.4 31.12.2024 30.06.2025 +93.7 37.838.7 31.12.2024 30.06.2025 -0.9
Page 10
10 Performance of Business Segments 02
Page 11
11 Challenging macro trends persist Industry trend Engineering • Challenging macro environment: Persistent geopolitical tensions, weak global demand and structural issues continue to weigh on the German engineering sector in H1 2025; exports of machinery and equipment down by 1.4 % in Q1 vs. prior year • Sentiment improving cautiously: Slight improvement of business climate indicators (e.g., ifo, HCOB PMI) in June/July; stable development for H2 expected by over 50% of VDMA firms • Investment outlook mixed: Fiscal stimulus expected to support demand from 2026, but low capacity utilization and high uncertainty still dampen private investment • Risks remain high: Tariffs, weak dollar, high costs and unclear market signals delaying investments continue to pressure margins and planning
Page 12
12 Significant upturn in Engineering in Q2 Engineering segment – order development Incoming orders (EUR million) Order backlog (EUR million) Q1 25 Q2 25 171.2 Q1 24 Q2 24 143.3 264.1 H1 2025 330.7 H1 2024 120.8 159.5 +25% +19% +32% 31.12.2024 30.06.2025 394.0 350.7 +12.3%
Page 13
13 Gradually improving market dynamics expected in H2 Engineering segment – Sales Q1 25 Q2 25 123.2 Q1 24 Q2 24 129.4 266.1 H1 2025 259.7 H1 2024 136.7 136.5 -2.4% -4.8% -0.1% Sales (EUR million) FY 2024 FY 2025 596.7 Outlook 2025 (EUR million) Slightly increasing
Page 14
14 Gradually improving market dynamics expected in H2 Engineering segment – Earnings Q1 25 Q2 25 6.4 Q1 24 Q2 24 10.2 19.6 H1 2025 15.9 H1 2024 9.4 9.5 -18.9% -37.3% +1.1% 7,9% 5,2% 6,9% 7,0% 7,4% 6,1% adj. EBITA (EUR million) FY 2024 FY 2025 57.7 9,7% Outlook adj. EBITA 2025 (EUR million) / (%) Consistent 9 -11 %
Page 15
15 Mixed outlook for construction industry Industry trend Infrastructure • Diverging trends in construction: Residential construction still in contraction, with 48% of firms reporting insufficient order volumes as of June 2025; in contrast, strong growth in civil engineering • Permits and activity weak overall: Rising puilding permits with only +1.9% from Jan to May 2025, but still 5.3% below prior-year levels in May; sector output overall still below expectations • Cost pressure persists: Rising construction prices by +3.2% YoY in May 2025, delaying investment decisions; high material and labor costs weighing on profitability • Sentiment remains cautious: Mixed Outlook from Ifo and HCOB indicators; improved expectations in main construction sectors in June/July, but order intake remaining low (e.g. -8.0% in April, -0.5% in May)
Page 16
16 Stable incoming orders Infrastructure segment – order development Incoming orders (EUR million) Order backlog (EUR million) Q1 25 Q2 25 137.8 Q1 24 Q2 24 149.5 282.9 H1 2025 285.2 H1 2024 133.4 147.4 +1% -8% +10% 31.12.2024 30.06.2025 152.5 165.7 -8.0%
Page 17
17 Market demand expected to improve in H2 Infrastructure segment – Sales Q1 25 Q2 25 136.4 Q1 24 Q2 24 131.9 276.8 H1 2025 292.1 H1 2024 144.9 155.7 +5.5% +3.4% +7.5% Sales (EUR million) FY 2024 FY 2025 559.5 Outlook 2025 (EUR million) Moderatly increasing
Page 18
18 Intense competition and price pressure burdens segment result Infrastructure segment – earnings Q1 25 Q2 25 10.0 Q1 24 Q2 24 12.8 32.6 H1 2025 26.5 H1 2024 19.8 16.5 -18.7% -21.9% -16.7% 9,7% 7,3% 10,6% 11,8% 9,1% 13,7% adj. EBITA / adj. EBITA-margin (EUR million / %) FY 2024 FY 2025 63.6 11,4% Outlook 2025 (EUR million) / (%) Moderatly increasing 10 -12 %
Page 19
19 Low volumes and material shortages persisting Industry trend Materials Solutions • Materials sector: Still under pressure with industrial activity and export volumes staying below pre-crisis levels; weak dollar and weak global demand limiting recovery; specialized sectors hit hard, construction equipment sales down 27% YoY (Q1 2025). • Raw materials: Supply and pricing challenges continuing; persiting shortages of rare earths, lithium, magnesium and tungsten carbide disrupting production and raising input costs. • Subdued manufacturing activity: Decline of production by 1.6% YoY in Q1 2025; capacity utilization remaining low and investment activity muted • Outlook: Cautiously optimistic for late 2025, driven by stabilizing energy prices, easing inflation (approaching the 2% target), and a potential recovery in export demand — though still dampened by tariffs
Page 20
20 Incoming orders increased Materials Solutions segment – order development Incoming orders (EUR million) Order backlog (EUR million) Q1 25 Q2 25 146.2 Q1 24 Q2 24 150.6 280.8 H1 2025 285.5 H1 2024 130.2 139.3 +2% -3% +7% 31.12.2024 30.06.2025 118.7120.2 -1.2%
Page 21
21 Improved supply situation for tungsten carbide Materials Solutions segment – Sales Q1 25 Q2 25 143.0 Q1 24 Q2 24 148.6 295.8 H1 2025 284.4 H1 2024 147.2 141.4 -3.9% -3.8% -3.9% Sales (EUR million) FY 2024 FY 2025 564.8 Outlook 2025 (EUR million) slightly decreasing
Page 22
22 Earnings burdened by tariffs and material shortages Materials Solutions segment – earnings Q1 25 Q2 25 12.7 Q1 24 Q2 24 12.4 29.0 H1 2025 23.1 H1 2024 16.6 10.3 -20.3% +2.4% -38.0% 8,3% 8,9% 11,3% 7,3% 9,8% 8,1% adj. EBITA (EUR million) FY 2024 FY 2025 49.9 8,8% Outlook 2025 (EUR million) / (%) Strongly decreasing 5,5 – 7,5 %
Page 23
23 Guidance confirmed 03
Page 24
24 Persisting global uncertainty and Germany still weak Economic Outlook – July 2025 • Global economy remaining weak with persisting uncertainty Pending new trade deals, whith updated forecasts still forthcoming. • Germany with signs of stabilization but remaining below expectations and slower than other advanced economies • ifo Business Climate Index rissen to 88.6 points in July, supported by slight improvements in the manufacturing and construction sectors • Inflation remaining contained across the eurozone, with no major change expected in the ECB’s medium-term price outlook • Interest rates stable, with discussions around possible cuts delayed until clearer signals on inflation emerge • Slightly improved sentiment in the German economy, but continuing to reflect ongoing caution and low momentum • Global Economy +3.0% • USA +1.9% • Eurozone +1.0% • China +4.8% • Germany +0.1% GDP Growth Forecast for 2025 * Source: IMF, Reuters, ifo July 2025, European commission
Page 25
25 Mixed signals for second half of 2025 Segment expectations for second half of 2025 Engineering • Q2 2025 already showing a significant improvement in adjusted EBITA as compared to Q1 2025 • Business activity expected to pick up further in the second half of 2025 • A strong fourth quarter anticipated due to project- related factors • Segment guidance for adjusted EBITA reiterated from “Moderately increasing” to “Consistent” • Market demand and productivity expected to improve further in the second half of the 2025 • Segment guidance unchanged • BETEK: Export licenses for limited amounts of tungsten carbide obtained again; all planned customer requirements for 2025 can be met – assuming an unchanged licensing practice in China. Negative impact on sales and earnings expected for full year 2025 partly mitigated • Several segment companies to face further significant burdens from the US import tariffs • Segment guidance improved for Sales and adjusted EBITA Infrastructure Materials Solutions
Page 26
26 Materials Solutions improved, Engineering slightly weaker Updated FY 2025 guidance for the segments Green = Improvement compared to previous outlook | Red = Decline from previous outlook Segment Engineering Infrastructure Materials Solutions 2024 Guidance 2025 2024 Guidance 2025 2024 Guidance 2025 Sales (EUR million) 596.7 Slightly increasing 559.5 Moderatly increasing 564.8 Slightly decreasing Adj. EBITA (EUR million) 57.7 Consistent 63.6 Moderatly increasing 49.9 Strongly decreasing Adj. EBITA margin (%) 9.7 9 to 11 11.4 10 to 12 8.8 5.5 to 7.5
Page 27
27 Group guidance confirmed FY 2025 guidance for the group Group 2024 Guidance 2025 Sales (EUR bn) 1.72 1.70 to 1.85 Adj. EBITA (EUR million) 153.7 130 to 165 Adj. EBITA margin (%) 8.9 7.5 to 9.0 Free Cash Flow (EUR million) 135.4 > 90
Page 28
Strategy update: EMPOWERING MITTELSTAND 04
Page 29
29 Our strategy comprises three growth drivers Sound growth through financial strength: Free cash flow and additional debt capital with Net Debt / EBITDA <2.5x (no capital increase) EMPOWERING M&A Investing around EUR 500 million in acquisitions until 2030 EMPOWERING TECHNOLOGY Formation of technology fields to leverage growth opportunities Driving AI and Digitization EMPOWERING INTERNATIONALIZATION Expanding our M&A scope internationally
Page 30
30 International growth to enhance our resilience Empowering Internationalization in H1 2025 • Expansion of manufacturing capacities in the US through acquisitions of METFAB and HBS’ subsidiary SUNBELT • Expansion of presence in Scandinavian markets through acquisition of ELECTRO TRADING in Sweden • Expansion of international business of existing portfolio companies: − FS-BF started US production in existing facility of portfolio company AURORA − Preparations for the start of US production at HAUFF-TECHNIK proceeding as planned − New sales company for North America of HORNGROUP established
Page 31
31 Already five add-on acquisitions in 2025 Empowering M&A in H1 2025 Infrastructure Segment Manufacturer of components and spindle extensions for pipe systems Importer and distributor of products for the power grid and distribution sector and others Manufacturer of products for shuttering component joints in reinforced concrete construction KETTLER, Germany ELECTRO TRADING, Sweden Engineering Segment Developer and producer of stud welding equipment including control systems and power electronics Specialist in stainless steel solutions and metalworking for industrial applications HBS GROUP, Germany and USA TRIGOSYS, Germany METFAB Engineering, USA
Page 32
Expertise to support innovation and performance improvement Empowering Technology – experts at INDUS • Closer cooperation among portfolio companies in technology fields strengthens the technological expertise of the group − Integration of vibration testing specialist M+P into measurement and testing technology specialist IPETRONIK in order to better leverage synergies and jointly develop new markets − Deepening of strategic cooperation between HORNGROUP and GSR, particularly in new foreign markets • Set up of a venture client program; structured selection and cooperation process for collaboration among portfolio companies and technology start-ups to drive innovation
Page 33
Appendix 05
Page 34
Appendix Segment and Group Overview by Quarter INDUS-Group (in EUR million) Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q2 2025 Revenue with external third parties 416.5 469.9 458.8 459.0 1,804.1 450.8 453.3 459.7 438.6 1,802.4 410.1 429.0 443.1 439.6 1,721.8 402.4 434.2 EBITDA 61.4 67.2 71.4 62.4 262.5 66.1 62.0 72.6 57.5 258.1 48.5 59.7 61.3 56.6 226.1 42.5 49.0 in % of revenue 14.7 14.3 15.6 13.6 14.6 14.7 13.7 15.7 13.1 14.3 11.8 13.9 13.8 12.9 13.1 10.6 11.3 Depreciation and amortisation -20.0 -21.2 -61.1 -26.5 -128.8 -21.3 -21.9 -40.5 -24.9 -108.5 -21.8 -22.3 -29.5 -25.8 -99.4 -22.9 -23,2 of which PPA depreciation/amortisation -3.8 -4.5 -4.7 -4.7 -17.8 -4.7 -4.9 -5.1 -4.5 -19.2 -4.8 -5.0 -5.2 -5.3 -20.3 -5.3 5.4 of which impairments 0.0 0.0 -39.8 -3.0 -42.8 0.0 0.0 -17.6 -1.7 -19.3 0.0 0.0 -6.7 0.0 -6.7 0.0 0.0 EBITA adjusted 45.2 50.5 54.9 43.6 194.3 49.5 45.0 54.8 38.8 188.1 31.5 42.4 43.7 36.1 153.7 24.9 31.2 in % of revenue 10.9 10.7 12.0 9.5 10.8 11.0 9.9 11.9 8.9 10.4 7.7 9.9 9.9 8.2 8.9 6.2 7.2 EBIT 41.4 46.0 10.3 35.9 133.7 44.8 40.1 32.1 32.6 149.6 26.7 37.4 31.8 30.8 126.7 19.6 25.8 in % of revenue 9.9 9.8 2.2 7.8 7.4 9.9 8.8 7.0 7.4 8.3 6.5 8.7 7.2 7.0 7.4 4.9 5.9
Page 35
Appendix Segment and Group Overview by Quarter ENGINEERING (in EUR million) Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q2 2025 Revenue with external third parties 120.4 149.4 144.2 167.2 580.9 142.1 138.6 153.4 165.5 599.6 129.4 136.7 152.5 178.1 596.7 123.2 136.5 EBITDA 21.1 18.5 23.1 29.9 92.6 23.4 18.4 26.5 26.2 94.5 15.3 14.7 22.2 28.0 80.2 11.8 14.9 in % of revenue 17.5 12.4 16.0 17.9 15.9 16.5 13.3 17.3 15.8 15.8 11.8 10.8 14.6 15.7 13.4 9.6 10.9 Depreciation and amortisation -6.9 -7.9 -21.9 -8.5 -45.2 -7.8 -8.1 -12.7 -8.9 -37.5 -8.0 -8.2 -8.5 -9.8 -34.5 -8.6 -8.6 of which PPA depreciation/amortisation -1.9 -2.7 -2.9 -2.9 -10.4 -2.9 -2.9 -2.8 -2.8 -11.4 -2.9 -2.9 -3.1 -3.1 -12.0 -3.2 -3.2 of which impairments 0.0 0.0 -13.8 0.0 -13.8 0.0 0.0 -4.8 -0.3 -5.1 0.0 0.0 0.0 0.0 0.0 0 0.0 EBITA adjusted 16.1 13.3 17.9 24.3 71.6 18.5 13.2 21.4 20.4 73.5 10.2 9.4 16.8 21.3 57.7 6.4 9.5 in % of revenue 13.4 8.9 12.4 14.5 12.3 13.0 9.5 13.9 12.3 12.3 7.9 6.9 11.0 12.0 9.7 5.2 7.0 EBIT 14.2 10.6 1.2 21.4 47.4 15.6 10.3 13.8 17.3 57.0 7.3 6.5 13.7 18.2 45.7 3.2 6,3 in % of revenue 11.8 7.0 0.8 12.8 8.2 11.0 7.4 9.0 10.5 9.5 5.6 4.8 9.0 10.2 7.6 2.6 4.6
Page 36
Appendix Segment and Group Overview by Quarter INFRASTRUCTURE (in EUR million) Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q2 2025 Revenue with external third parties 139.5 154.5 152.5 139.5 586.0 141.5 149.8 153.4 137.5 582.2 131.9 144.9 148.4 134.3 559,5 136.4 155.7 EBITDA 22.1 25.4 26.1 14.9 88.5 16.8 20.9 25.8 19.5 83.0 17.9 25.1 26.0 17.0 86.0 15.6 22.2 in % of revenue 15.8 16.4 17.1 10.7 15.1 11.9 14.0 16.8 14.2 14.3 13.6 17.3 17.5 12.7 15.4 11.4 14.3 Depreciation and amortisation -6.0 -6.1 -18.7 -6.4 -37.2 -6.2 -6.5 -14.0 -7.1 -33.7 -6.5 -6.8 -12.2 -8.2 -33.7 -7.2 -7.4 of which PPA depreciation/amortisation -1.1 -1.1 -1.2 -1.2 -4.6 -1.2 -1.3 -1.3 -1.2 -5.0 -1.4 -1.5 -1.5 1.7 -6.1 -1.6 -1.7 of which impairments 0.0 0.0 -12.7 0.0 -12.7 0.0 0.0 -7.5 0.0 -7.5 0.0 0.0 -5.2 0.0 -5.2 0.0 0.0 EBITA adjusted 17.2 20.4 21.3 9.7 68.6 11.9 15.7 20.6 13.6 61.8 12.8 19.8 20.5 10.5 63.6 10.0 16.5 in % of revenue 12.3 13.2 14.0 6.9 11.7 8.4 10.5 13.4 9.9 10.6 9.7 13.7 13.8 7.8 11.4 7.3 10.6 EBIT 16.1 19.3 7.4 8.5 51.3 10.7 14.4 11.8 12.4 49.3 11.4 18.3 13.8 8.8 52.3 8.4 14.8 in % of revenue 11.5 12.5 4.9 6.1 8.8 7.6 9.6 7.7 9.0 8.5 8.6 12.6 9.3 6.6 9.3 6.2 9.5
Page 37
Appendix Segment and Group Overview by Quarter MATERIALS SOLUTIONS (in EUR million) Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q2 2025 Revenue with external third parties 156.5 165.8 162.1 152.4 636.8 166.8 164.7 152.8 135.6 619.9 148.6 147.2 142.0 127.0 564.8 142.5 141.9 EBITDA 21.0 25.9 25.5 20.0 92.4 27.2 25.1 26.0 15.4 93.7 18.8 23.0 19.0 15.4 76.2 19.0 16.7 in % of revenue 13.4 15.6 15.7 13.1 14.5 16.3 15.2 17.0 11.4 15.1 12.7 15.6 13.4 12.1 13.5 13.3 11.8 Depreciation and amortisation -7.0 -6.8 -20.2 -8.5 -42.5 -7.1 -7.1 -13.5 -8.7 -36.4 -7.0 -7.0 -8.6 -7.5 -30.1 -6.8 -6,9 of which PPA depreciation/amortisation -0.7 -0.7 -0.7 -0.7 -2.8 -0.7 -0.7 -0.9 -0.4 -2.7 -0.6 -0.6 -0.6 -0.5 -2.3 -0.5 -0.5 of which impairments 0.0 0.0 -13.3 -1.5 -14.8 0.0 0.0 -5.3 -1.4 -6.7 0.0 0.0 -1.5 0.0 -1.5 0.0 0.0 EBITA adjusted 14.7 19.8 19.3 13.7 67.5 20.8 18.7 18.7 8.5 66.7 12.4 16.6 12.6 8.3 49.9 12.7 10.3 in % of revenue 9.4 11.9 11.9 9.0 10.6 12.5 11.4 12.2 6.3 10.8 8.3 11.3 8.9 6.5 8.8 8.9 7.3 EBIT 14.0 19.1 5.3 11.5 49.9 20.1 18.0 12.5 6.7 57.3 11.8 16.0 10.5 7.8 46.1 12.2 9.8 in % of revenue 8.9 11.5 3.3 7.5 7.8 12.1 10.9 8.2 4.9 9.2 7.9 10.9 7.4 6.1 8.2 8.6 6.9
Page 38
38 Segment Engineering At a glance CONFIDENT IAL Technology Fields17 Companies • Automation & Assembly Technology • Conveyor Technology • Flow Technology • Machine & Equipment Technology • Measuring & Surveillance Technology • Process Technology
Page 39
17 Companies Infrastructure At a glance • Cable and Building Entries & Infrastructure • Mobile HVAC Systems • Civil Engineering & Concrete • Building Components • Air Conditioning & Ventilation Technology • Construction Chemistry Technology Fields
Page 40
40 Materials Solutions At a glance • Carbide Tools & Wear-Resistant Solutions • Components & Assembly Solutions • Surface & Enclosure Solutions • Medical & Rehabilitation Solutions • New Materials & Process Technologies • 13 Companies in the Segment 13 Companies Technology Fields
Page 41
41 For further reading
Page 42
What sets us apart 06 42
Page 43
43 Buy & grow • With our track record of finding tailored succession solutions for family-owned businesses, we have become a respected partner for owner-entrepreneurs . • The sellers often stay on board as minority shareholders to facilitate the transition. • While we historically started in the German-speaking Mittelstand, we have been expanding our search for interesting targets from everywhere in Europe Succession solutions for Mittelstand companies for 40 years
Page 44
44 Buy & grow • We understand technology in more detail than others, even when they are niche technologies We are engineers at heart. This is why we invest in companies with excellent products, processes and services. • For the companies in our portfolio, we take an evergreen perspective and make a long-term commitment. We successfully lead our investments in a values-based and reliable manner. • We invest in growth, technology and people. We are not looking for quick and superficial success. We buy and grow businesses with unique engineering capabilities and develop them further
Page 45
Who we are 07 45
Page 46
46 Our Purpose • At INDUS we know how to grow the power of Mittelstand. • We believe in entrepreneurs and lead our investments successfully, values-based and reliably. • We love engineering and only invest in companies with excellent products, processes and services. • We trust our people to contribute to our success. This is how we create a future-proof working environment. • As international investors we generate sustained growth and offer a long term, above average value-perspective for our shareholders.
Page 47
47 We invest in the development of Mittelstand companies – with the people who shape it. • Evergreen financial investor, listed on German SDAX • Succession of SMEs (small and medium-sized enterprises), often in family hands, with a joint transition period • The transition period can be more than pure succession, it also allows for a longer-term growth partnership • Investment focus: industrial SMEs with engineering competence operating in niche markets • “Buy & grow” ambition: EUR 3 billion in sales by 2030; thereof EUR 600 million through acquisitions • Management team with international industrial expertise and long-term track record INDUS GROUP 30 countries 43 portfolio companies EUR 1.72 bn sales in 2024 founded in 1989
Page 48
48 The Board of Management of INDUS Broad industrial expertise CONFIDENTIAL COO Engineering Axel Meyer Dr. Jörn Großmann Gudrun Degenhart Dr.–Ing. Johannes Schmidt Rudolf Weichert COO Infrastructure COO Materials Solutions CEO CFO Segmentmanagement Central functions
Page 49
Engineering Infrastructure Materials Solutions From software solutions to mechanical engineering From building components to structural solutions From micro optics to wear tools Our passion is technology. We focus on three segments:
Page 50
50 Investing in a driving force of Mittelstand INDUS Investment Case Growth through a dynamic acquisition program and organic growth in the portfolio Access to an asset class which cannot be directly invested in via the capital market Active portfolio development (including selective divestments) for profitable and sound financial growth Profitability and a solid free cash flow as a guarantee for regular dividend payments A diversified portfolio of medium- sized companies with a focus on sophisticated industrial engineering in specific technology fields Strengthening portfolio resilience with international expansion through appropriate acquisitions and support for portfolio companies in their international growth
Page 51
51 Continuity in attractive dividend policy 2019 2020 2021 2022 2023 2024 0,80 0,80 1,05 2,1% 2,5% 3,2% 1,20 5,4% 0,80 3,6% Dividend* Dividend yield 1,20 5,9% 2019 2020 2021 2022 2023 79,6 35,8 54,4 80,8 24,6% 60,0% 51,9% 38,7% 27,2 79,0% INDUS Holding AG profit Dividend payout ratio 2024 77,9 38,4% (EUR per share) Regular participation of shareholders in business success At least 50% of profits retained to strengthen the company Up to 50% of profits distributed ᴓ 3,8 % ᴓ 48,8 % ᴓ 0,98 € (EUR million)
Page 52
52 Anchor shareholders support the company's long-term course Current shareholder structure Sharholder Structure as at 11 March 2025 (%) WKN/ISIN 620010/EN 000 620 010 8 Foundation/IPO 1986/1995 Financial year 1 Jan. to 31 Dec. Share capital EUR 69.9 million Number of shares 25,800,000 no-par value bearer shares Last capital increase 26 March 2021 Free float approx. 78% Trading centres XETRA, Düsseldorf, Frankfurt (regulated market) Tradegate Exchange, Berlin, Hamburg, Hannover, Munich, Stuttgart Index SDAX Designated Sponsors ICF BANK AG ODDO BHF 62.0 10.3 5.8 5.6 3.8 3.5 3.123.10 2.8 Freefloat* Versicherungskammer Bayern H.J. Selzer et al. Protector Forsikring Wirtgen Invest Holding Treasury Shares** Volkswagen Stiftung Prof. Dr.-Ing. E.h. Friedhelm Loh Epina * Deutsche Börse defines free float as all shares that are not held by major shareholders (who hold at least 5 % of the share capital). According to this definition, the free float is 78.3 %. ** The 904,441 shares bought back by the company do not carry voting or dividend rights.
Page 53
Empowering M&A 08 53
Page 54
Acquisition by INDUS portfolio company (second level) Acquisition by INDUS Holding AG (first level) 54 Acquisitions on two levels Growth or Add-on acquisitions GROWTH ACQUISITIONS ADD-ON ACQUISITIONS Expansion of the INDUS portfolio with new capabilities and products Strengthening portfolio companies through product or market additions
Page 55
55 Empowering M&A with growth acquisitions in Europe Investment criteria Financial Criteria • Sales: EUR 20–100 million • Adj. EBITA above 4 million EUR per year • Equity ratio > 30% • Cash flow orientation • Low level/no liabilities to banks Industrial Criteria • Broadly diversified customer base • Niche position • Own industrial added value • Growth perspectives, also internationally
Page 56
Empowering M&A with add-on acquisitions worldwide Investment criteria • Greater leeway in investment criteria • Strengthening existing portfolio companies through − complementary products − presence in other regions • Creation of technology fields within a segment by combining the competences of the add-on acquisition and other portfolio companies • Economic potential arising from a combination of the acquired company with an existing portfolio company crucial in the decision-making process
Page 57
57 Contact Contact Name: Dafne Sanac Department: Investor Relations Phone: +49 (0) 2204/40 00-32 Email: investor.relations@indus.de
Page 58
58 INDUS HOLDING AG Disclaimer This presentation was prepared by INDUS Holding AG (herein INDUS) and is intended for information purposes only. It constitutes neither an offer nor a solicitation to buy or sell securities and cannot be deemed a sufficient or suitable basis for making any decision. All information in this presentation has been prepared to the best of our knowledge and understanding. Nevertheless, INDUS does not assume any liability whatsoever relating to the use of this document or its content or in any other connection with this document. Furthermore, INDUS does not assume any responsibility or guarantee for the information or opinions contained therein being accurate, up to date and complete. The reproduction, distribution or copying of this document or parts of this document is not permitted without the written consent of INDUS. This presentation may contain forward-looking statements. These statements are based on the estimates and forecasts of the INDUS Board of Management at the time of publication and the information available to them at the current time. The forward-looking statements are not to be considered a guarantee of future developments and results of INDUS mentioned therein. Rather, these depend on numerous factors. They contain various risks and uncertainties and are based on assumptions that may not prove to be accurate. INDUS does not assume any obligation beyond the legal requirements to update the forward-looking statements contained in this presentation.