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August 2020
IR PRESENTATIONQ2 I 6M UPDATEHannes Niederhauser, CEORichard Neuwirth, CFO
> Headquarter in Linz, Austria, listed in Frankfurt, Germany> ~ EUR 1.5 Bn. market cap as of 5th of August 2020> 2019 trading volume of ~ EUR 1 Bn.
MEMBER OF THE TECDAX® & SDAX®04
> 2019: EUR 1,122.9 Mio. revenues and EUR 111.7 Mio. EBITDA> 2019: Strong op. cashflow (EUR 83.4 Mio.) and high liquidity (EUR 312.3 Mio.)> 4.934 employees in 32 countries
S&T IN FIGURES03
> Germany, Austria, Switzerland (DACH)> East Europe
S&T IS AN IT SERVICE PROVIDER WITH REGIONAL FOCUS02
> S&T offers IoT solutions for Industrial & Transportation> IoT grows fast: The whole Industry 4.0 market is expected to grow at a
CAGR of ~15% by 2022*
S&T PROVIDES GLOBAL IOT 4.0 TECHNOLOGY 01
* Revenues in % of S&T Group total revenues based on location of revenue generating S&T subsidiary ** Source: IMS Report, ABI Research, Oracle, Markets and Markets Analysis
S&T AT A GLANCE
2
› ESG rating improvements ongoing
› Continuous dividend increase: 2014 - 2018: 7ct; 8ct; 10ct; 13ct; 16ct; dividend for FY 2019 postponed to 2021 due to Corona crisis;
› 2020: new Share buyback program I 2020 started (390T shares purchased until 30th of June 2020), 1.147 Mio. treasury shares as of 30th of June 2020
SHAREHOLDER FOCUS
› Working Capital Optimization progressing well through PEC program, operating Cash Flow improved by ~ 39 Mio. (6M 2020: EUR 27.2 Mio. | 6M 2019: minus 11.7 Mio.)
› Cash of EUR 257.7 Mio. at hand as of 30th of June 2020
› Sufficient liquidity available to finance organic and an-organic growth
FINANCE GROWTH
› Manufacturing cooperation and IoT cooperation with Foxconn in progress
› Alliance with Microsoft and Intel for Industry 4.0 Cloud Solutions
› 5G stack for IIoT extended by acquisition of Iskratel, SI
LEADING IOT ALLIANCE
› Revenue Q2 2020 (Q2 2019): +8.3% to EUR 268.7 Mio. (EUR 248.1 Mio.)
› EBITDA Q2 2020 (Q2 2019): +16% to EUR 26.9 Mio. (EUR 23.2 Mio.)
› Net Income after NCI Q2 2020 (Q2 2019): +8% to EUR 19.6 Mio. (EUR 18.2 Mio.)
PROFIT FOCUS
S&T HIGHLIGHTS
3
23.226.9
0
5
10
15
20
25
30
Q2 2019 | Q2 2020
89.2103.8
0
20
40
60
80
100
120
Q2 2019 | Q2 2020
8.810.1
0
5
10
15
20
Q2 2019 | Q2 2020
20.8
0
5
10
15
20
248.1268.7
0
50
100
150
200
250
300
Q2 2019 | Q2 2020
Q2 2020EXCELLENT RESULTS DESPITE COVID-19 PANDEMIC
Strong Q2 2020 against global economic break-down caused by Covid-19| Operating Cashflow improved by EUR 19.5 Mio. in Q2 2020
REVENUE(in EUR Mio.)
+ 8.3% + 16.3%
GROSS PROFIT(in EUR Mio.)
NET INCOME AFTER NCI (in EUR Mio.)
+ 16%
+ 14.8%
+ EUR 19.5 Mio.
EBITDA(in EUR Mio.)
OPERATING CASHFLOW(in EUR Mio.)
CASH AND CASH EQUIVALENTS(in EUR Mio.)
4
6M 2019 | 6M 2020
1.3
276.1257.7
0
50
100
150
200
250
300
350
31.03.2020 | 30.06.2020
- EUR 18.4 Mio.
44.352.0
0
10
20
30
40
50
60
6M 2019 | 6M 2020
174.5
211.6
0
50
100
150
200
6M 2019 | 6M 2020
18.219.6
0
5
10
15
20
6M 2019 | 6M 2020
-11.7
-15
-10
-5
0
5
10
15
473.8538.7
0
100
200
300
400
500
600
6M 2019 | 6M 2020
6M 2020GOOD RESULTS IN ALL PARAMETERS
Despite first Corona headwinds, strong 1st HY 2020 | Operating Cashflow improved by ~ EUR 38.9 Mio.
REVENUE(in EUR Mio.)
+ 13.7% + 21.3%
GROSS PROFIT(in EUR Mio.)
NET INCOME AFTER NCI (in EUR Mio.)
+ 17.4%
+ 8%
+ EUR 38.9 Mio.
EBITDA(in EUR Mio.)
OPERATING CASHFLOW(in EUR Mio.)
CASH AND CASH EQUIVALENTS(in EUR Mio.)
5
6M 2019 | 6M 2020
27.2
312.3
257.7
0
50
100
150
200
250
300
350
31.12.2019 | 30.06.2020
- EUR 54.6 Mio.
S&T BUSINESS MODEL
* incl. I/C revenues before Iskratel+ Citycomp acquisition** before HQ-fee distribution
IOT SOLUTIONS AMERICA
> Eastern Europe
Revenue plan 2020: EUR 660 Mio.* Mid-term targets:
> EBITDA** > 14%> GM > 40%> Growth p.a.: 12%
> Medical
IOT SOLUTIONS EUROPE
IOT ASIA
IT SERVICES
Revenue plan 2020: EUR 480 Mio.* Mid-term targets:
> EBITDA** > 6%> GM > 30%> Growth p.a.: 6%
SERVICES EE
Revenue plan 2020: EUR 145 Mio.* Mid-term targets:
> EBITDA** > 10%> GM > 40%> Growth p.a.: 12%
IOT NORTH AMERICA
6
INDUSTRIAL MEDICAL SMART ENERGYTRANSPORT
IoT Solutions Europe Technologies to be pushed additionally via S&T sales channels in North America, Asia and Eastern Europe
SERVICES EE COMMUNICATIONS
11.7**10.2**
16.9
5.0% 5.1%213
235.5
› S&T Eastern Europe adopted faster to Corona crisis, Corona impacts will be minor
› In general Corona impact lower than in West Europe (less cases, less travelling)
› Delays/cancellations in deployments are compensated by
› More public business› “Corona” subsidies on labor cost› Home office/VPN equipment
› EBITDA margin growing appr. 0.5% vs 2019
› Good growth of Home Office, Network & Security, SAP Hana and Public Business
ADJ. EBITDA MARGINS***
* 3rd Party revenues including intercompany revenues** Difference based on charged management fees from S&T AG (part of IT Services Segment)*** HQ-fee adjusted EBITDA in % of external revenue
EBITDA
Macroeconomic situation: Eastern Europe did grow stronger than Western Europe
REVENUE*
IT SERVICES
6M 2019 | 6M 20206M 2019 | 6M 20206M 2019 | 6M 2020
7
14.9
237.3
310.4 14.6%13.8%
› Highest EBITDA (before HQ-fee) contribution to the group of 60% in Q2 2020
› Strong growth due to growing IIOT market
› Business well adopted to Corona crisis:› Medical booming (Dräger, Maquet, GEHC)› Public business (trains)› Less subsidies due to full utilization
› Profit growth continues due to increased share of software products in the S&T portfolio
› M2M (IIoT) communication expanded by newly acquired 5G know-how (Iskratel)
ADJ. EBITDA MARGINS***
EBITDA
“IoT Solutions Europe” segment drives profitability further
REVENUE*
IOT SOLUTIONS EUROPE
6M 2019 | 6M 20206M 2019 | 6M 20206M 2019 | 6M 2020
31.8
26.5
* 3rd Party revenues including intercompany revenues** Difference based on charged management fees to S&T AG (part of IT Services Segment)*** HQ-fee adjusted EBITDA in % of external revenue 8
35.6**
28.9**
7.3%
8.8%77.9
66.9
› Two largest customers (~ 50% of revenues, but low margin) phasing out, Avionics weaker
› Twitch and GEHC partially compensate
› New projects have lower revenues but improved EBITDA
› Negative impact of restructuring in 6M 2020 approx. EUR 1 Mio.
› GM improvement on track GM: 34,8% (6M 2019) vs. 37,1% (6M 2020)
› Book to bill 6M 2020 > 1,4
ADJ. EBITDAMARGINS***
EBITDA
Canada business weak | Further improvement measures identified and in execution
REVENUE*
IOT SOLUTIONS AMERICA
6M 2019 | 6M 20206M 2019 | 6M 20206M 2019 | 6M 2020
* 3rd Party revenues including intercompany revenues** Difference based on charged management fees to S&T AG (part of IT Services Segment)*** HQ-fee adjusted EBITDA in % of external revenue 9
2.9
3.3
5.2**
4.7**5.2**
ITP PROGRAM (`IMPROVE TECHNOLOGY PENETRATION´) PROGRAM TO BOOST S&T’S GROWTH AND MARGINS
SUSIETECSUSiEtec IoT software framework: Enabling machine learning (AI)
› Improve software product portfolio: Embedded SW, Soft PLC, TSN (real time networks)
› EUR 80 Mio. software revenues planned by 2023 + triggering additional IoT product sales
EXCELLENT POOL OF ENGINEERS
> Cost efficient in-house resources in Eastern Europe
> 2019: EUR 170,5 million R&D costs (15,2% of revenues) as of 40% paid by customers
> Around 3.000 engineering heads worldwide
SMART ENERGYIoT-ready Smart Grids: From hardware up to data management software
› Revenue plan of EUR 100 Mio. until 2023
TRAIN CONTROL SYSTEMSMission critical control systems for high speed trains
› Revenue plan of EUR 140 Mio. until 2023 140
100
80
99
49
21
In Mio. EUR
In Mio. EUR
In Mio. EUR
2019
2023
2019
2023
2019
2023
2,649
485
383
677
740
Engineering Field EngineersProduction SalesOthers
10
Avionics investments currently on hold
In Mio. EUR
OUR OFFERING FOR A SMART FACTORY: FROM EDGE TO CLOUD
COOPERATION WITH FOXCONN
> Roll out of IoT Software together in Asia> Cooperate on leading Industry 4.0
production standards and technologies> Create a global Industry 4.0 factory
CUSTOMER EXAMPLES> SUSiEtec Workforce-Solution > Driverless transport vehicles for production and logistics operations
Enabling IoT navigation software for sensor-based tracking> Printing industry - IoT Industry Computer Platforms to operate printing presses> Manufacturer of injection molding machines
Modern user experience and process control in factory environment
EDGE DEVICES GATEWAYS / PLC FOG CLOUD
COOPERATION WITH MICROSOFT AZURE
EMBEDDED SOFTWARECUSTOMIZED
IOT INTERFACESECURITY
ON PREMISE COMPUTING & STORAGE
“REAL-TIME NETWORKS”
TECHNOLOGY SMART FACTORY
11
› Global Top Player and Top 3 Customer of S&T (EUR 20 Mio. FY2019)
› Control systems designed and delivered since 10 years by Kontron
› Business currently exploding – weekend shifts in Augsburg + Ismaning
DRÄGER VENTILATOR SYSTEMS
› S&T runs service contracts for technical equipment in hospitals
› Total volume 2019 appr. EUR 40 Mio.
› No shut down for mission critical services during corona crisis
MEDICAL SERVICES
COMPLETE MEDICAL SOLUTION OFFERINGMEDICAL SYSTEMS
TECHNOLOGYMEDICAL AND HEALTHCARE MARKET
› S&T designs and delivers Smart Medical Control Systems
› Total volume 2019 appr. EUR 100 Mio.
Top customers :
› GE Healthcare (USA + Israel)
› Dräger, Maquet, Philips, Fresenius, Medtronic, Siemens
› S&T is qualified as mission critical supplier and will stay open during Corona crisis (Augsburg, Ismaning and San Diego facilities)
› Strong business demand (+ 50%)
12
45
119.2 121.5
156.4 153.9
2015 2016 2017 2018 2019
OPERATING CASH FLOW (IN EUR MIO.)
UPDATE PEC PROGRAMSIGNIFICANT IMPROVEMENTS ON CASHFLOW AND WC RATIO
IN TEUR NON-ORGANIC CASH FLOW IMPACTs
-2,254 Settlement HU for Kapsch CarrierCom in Q2 2020
26.7
61.4
44.935.5
83.4
2015 2016 2017 2018 2019
in EUR Mio. 2018 Q2 2019 2019 Q2 2020
Revenues 990 249 1,123 268,6
Inventory74 days
(131 Mio.)95 days
(167 Mio.)73 days
(147 Mio.)87 days
(158 Mio.)
A/R 75 days
(202 Mio.)63 days
(172 Mio.)69 days
(212 Mio.)61 days
(180 Mio.)
Factoring 56 Mio. (20%) 56 Mio. (24%) 63 Mio. (23%) 58 Mio. (24%)
ONE TIME EFFECTS ON OPERATING CASH FLOW IN Q2
WORKING CAPITAL IN MIO. EUR | RATIO IN % OF REVENUES(IN EUR MIO.)
9.6%
23.7% 13.8%15.8% 13.7%
13
-13.0
Q2 19 Q2 20
Ach
sen
tite
lAchsentitel
221.3
168.9
Q2 19 Q2 20
21.8%
14.5%
Q2 19
27.0
ONE-TIME EFFECTS IN Q2 | 6M 2020
Adjusted EBIT in Q2 amounts to EUR 12.7 Mio. vs 11.9 Mio. actual | 4% non-organic growth in Q2 2020
IN KEUR ONE TIME PROFIT EFFECTS (Q2)
-382 Restructuring America (finished)
-1,384 cost to for other supplier sources in Corona times
+1300 Settlement HU
-332 Expenses on stock options plan
-788 Total impact on Q2 results
IN TEUR R&D CAPITALIZATION Q2
+3,488 Capitalization R&D in Q2
-2,997 Amortization of R&D in Q2
+491 Impact R&D Capitalization
IN TEUR IMPACTS FROM PPA
1,904 Q2 2019 Amortization
2,623 Q2 2020 Amortization
- 719 Increase in PPA Amortization
IN MIO. EUR ONE TIME REVENUE EFFECTS Q2 2020
+21.3 New acquisitions
-10.4 Cancelled business
+10.9 Total impact on Q2 2020 revenues
14
Mio. EUR 30/06/2020 31/12/2019 30/06/2020 31/12/2019
NON-CURRENT ASSETS 445,0 457,2 CAPITAL AND RESERVES 383,5 385,1
Fixed Assets 411,4 422,8 Equity 383,5 385,1
Other Assets 33,7 34,4
NON-CURRENT LIABILITIES 311,0 331,8
CURRENT ASSETS 699,6 768,5 Long-term loans and borrowings 210,7 220,0
Inventories 158,0 146,8 Other Non-Current Liabilities 100,3 111,8
Trade receivables 180,5 212,1 CURRENT LIABILITIES 450,1 508,8
Contract Assets from Customers 23,3 27,2 Trade payables 169,6 205,0
Cash and cash equivalents 257,7 312,3 Contract Liabilities from Customers 73,4 60,0
Other receivables and prepayments 63,8 70,1 Short-term loans and borrowings 52,7 62,8
Other Current Liabilities 154,4 181,1
Total Assets 1.144,7 1.225,7 Total Liabilities & Equity 1.144,7 1.225,7
Equity Ratio 33,5% 31,4%
Net Cash* 7,1 29,5
Working Capital 192,1 181,1
Working Capital excluding IFRS 15** 168,9 153,9
S&T GROUP BALANCE SHEET
* Definition Net Cash: Cash and cash equivalents less non-current and current financing liabilities (excl. liabilities from leasing according to IFRS 16)** Definition Working Capital: Inventories plus trade receivables less trade payables (excl. IFRS 15 contract assets and liabilities)
Seasonal decrease of balance sheet sum | Cash represents 22.5% of Total Assets
15
841
2,158
910
-300
100
500
900
1300
1700
2100
2500
Backlog Project Pipeline
31.12.2019 30.06.2020
BACKLOG & OPPORTUNITIESORDERS AND DESIGN WINS REMAIN STRONG IN Q2 2020
BACKLOG DEVELOPMENT REMAINS POSITIVE
+8.2%
+21.6%
SELECTED ORDERS | DESIGN WINS 6M 2020 COUNTRY VOLUME EUR
Public safety/emergency system “112” BG 58 Mio.
Control for high-speed train LIT, BG, CN 38 Mio.
Control for high-speed train CZ 22 Mio.
Border control HR 36 Mio.
Global leader in medical equipment USA 14 Mio.
Medical respirator machines GER 12 Mio.
Autonomous driving USA 7 Mio.
Leading robot company in Europe GER 7 Mio.
Medical respirator machines GER 6 Mio.(in EUR Mio.)
16
2,625
Growth in medical and public customers compensates slump in avionics
REVENUE(IN EUR MIO.)
EBITDA(IN EUR MIO.)
2020 S&T WILL EXCEED FIRST TIME 10% EBITDA-MARGIN
Guidance FY 2020*: minimum EUR 1.150 Mio. Revenue @ EUR 115 Mio. EBITDA , strong Q2 with low impacts by Corona
Backlog EUR Mio. 12/14 12/15 12/16 12/17 12/18 12/19 6/20
Project Pipeline 644 701 1,002 1,105 1,632 2,158 2,625
Scheduled Orders 157 181 306 474 841 841 909
GM 33.0 % 33.9 % 33.5% 35.7 % 36.3% 37.0% > 38%
EBITDA 5.9% 6.0% 6.8% 7.7% 9.1% 9.9% > 10%
CONTINUOUS GROSS MARGIN AND EBITDA MARGIN GROWTH
22.9 28.3 34.4
68.1
90.5
111.7115.0
-10
10
30
50
70
90
110
130
2014 2015 2016 2017 2018 2019 2020fc 2014 2015 2016 2017 2018 2019 2020fc
IoT Solutions | America
IoT Solutions | Europe
IT Services
385504
468
882991
1,1231,150
17* Excluding M&A of Iskratel and CITYCOMP
AGENDA 2023GUIDANCE CONFIRMED EVEN AFTER CORONA IMPACTS
› Organic growth in line with market growth per segment › Additional organic growth potential from the ITP programs› More inorganic acquisitions based on reduced Corona prices
Agenda 2023 after Corona: reduced organic growth in 2020 will be compensated by more M&A activities at discounted prices
EUR 2 Bn.
2023
2018
IT
Services
420
IoT
Solutions
450
EUR 1 BN. 5 years plan 2018 2023p Growth
Revenues 990 Mio. 2,000 Mio. +102%
EBITDA 90.5 Mio. 220 Mio +143%
EPS 70 cent 175 cent +150%
IOT TECHNOLOGIESPotential up to EUR 300 Mio.
SMART METERPotential up to EUR 100 Mio.
GROWTH IN ASIAPotential up to EUR 200 Mio.
EMBEDDED ODM SERVICES
Potential up to EUR 100 Mio.
ACQUISITIONSPotential up to EUR 400 Mio.
EDGE SERVERPotential up to EUR 200 Mio.
18
MEASURES TAKEN AND IMPACTS M&A OPPORTUNITIES WHILE COVID
No revenue impact on Q2 (EUR 268.6 Mio.) vs Q1 (EUR 270.1 Mio.)
› Qualify 2nd sources to repair supply chain (H1: 3,117 TEUR add. cost)
Focus on Covid-19 winner markets and public sector
› EUR 50 Mio. in 2020 added in Medical (respirators – Dräger, GE)
› public sector increases to ~50% of new projects (2019: 32%)
› EUR 20 Mio./2020 lost in avionics
EUR 4,5 Mio labor cost reductions in Q2, FC EUR 2,5 Mio. in Q3
› Management/Board waived 20% of salary in Q2+Q3
› 8% of subsidized “reduced hours” -> no layoffs (mainly IT services)
› Q3 another 2.5 Mio. expected
Up to 70% of all employee's home office work -> no productivity impact
› S&T supports Home office trend for years, IT infrastructure exists
› Good results, we will increase Home office ratio permanently to 25%
› Mission critical production (Augsburg, San Diego) no shut down
Agenda 2023 plans for EUR 2.000 Mio of revenues
› Half of growth by M&A (acquire EUR 100 Mio. revenues per year)
› EUR 250 Mio. of cash, EUR 25 Mio. of treasury shares and strong cash flow support this strategy without need for major capital increases
› Internal M&A department and existing pipeline > 10 acquisitions
Corona is a gamechanger in acquisition landscape
› Lack of acquisition financing reduces potential buyers (no PE funds)
› Valuations drop by 30% based on
› Lower profits (currently) at targets result in lower valuations
› Less potential buyers
› DD Handicaps based on travel restrictions
S&T M&A targets
› Restructuring situations at no profit
› High synergies with S&T -> achieve 10% EBITDA within 2 years
› Valuations down to 40% of revenues (before 60%)
BENEFIT FROM THE COVID-19 PANDEMIC
S&T acquired Iskratel & CITYCOMP (adds EUR 140 Mio. in 2021) – we will acquire min. EUR 300 Mio. within Corona period 2020/2021
19
PRODUCT DIVISIONS› Industrial (48%): trains, public safety / 112, industrial IOT
› Broadband (33%): gateways, CPE (last mile infrastructure)
› Communication (19%): 5G core, IMS
TRANSACTION › Acquisition of Iskratel group
› Locations/owned buildings: SLO 31,000m², RUS 4,000m²
› Purchasing price fix EUR 37.5 Mio. + 0.56 * EBITDA (2020-2022)
› 2019 key figures: Rev EUR 116.5 Mio. @ EUR 2.6 Mio. EBITDA
› 907 FTEs (590 SLO, 201 RUS, 70 MK)
› Revenues: 63% East Europe (mainly Adriatic), 37% Russia
› 2019: 46.2 Mio. equity (47%) @ 9.5 Mio. Net Cash, 21.8 Mio. WC
SYNERGIES IMPACT 2022› Add Iskratel to S&T IOT Europe solutions 20 Mio. Rev
› Add 5G know how to S&T Industrial + transportation
› Utilize Iskratel engineering 3.6 Mio. cost
› Joint sourcing 1.2 Mio. cost
ISKRATEL RESULTS
M&A UPDATE I: ISKRATEL GROUP
2018 2019 2020 2021 2022
Revenues (in EUR Mio.) 104 116.5 105 115 146
EBITDA (in EUR Mio.) 7.5 2.6 4.2 8.2 15.1
EBITDA Marge (in %) 7.2 2.2 4 7.1 10.3
20
› Acquisition of 55.5% for a fixed price of EUR 6 Mio. at Closing
› Call/Put Options with remaining shareholders (active management) until 2023
› Signing July 1st 2020 subject to merger control clearance
› Closing expected in Q3 2020
With CITYCOMP, S&T achieves nationwide network in Germany | Due to temporary Corona impact and high synergies cons
21
TRANSACTION STRUCTUREABOUT CITYCOMP
TRANSACTION RATIONALE
› CITYCOMP provides Multi-Vendor-IT Services
› 5,000m² headquarter near Stuttgart (own property)
› Revenue FY 2019 of EUR 38 Mio. @ 10% EBITDA
› Revenue FY 2020 of EUR 30 Mio. @ 1% EBITDA (Corona impact
› ~ 300 FTE covering Germany (+ Austria and Switzerland)
› > 2#,500 active customers, > 500,000 devices under maintenance
› With CITYCOMP, S&T becomes nationwide services provider in Germany
› Low valuation due to Q2 Covid-19 impact compared to historicperformance (> 10% CAGR, ~ 10% EBITDA Margin)
› High synergies with S&T in existing cusomer base and by near-shoringpotential with S&T EE presence
2019 2020 2021 2022
Revenues (in EUR Mio.) 38.5 30 35.9 39.2
EBITDA (in EUR Mio.) 3.5 0.6 2.7 4.3
EBITDA Marge (in %) 9.1 2.0 7.5 11.0
CITYCOMP RESULTS
M&A UPDATE II: CITYCOMP
SHARE LIQUIDITY COVERAGE
S&T SHARE: A TECDAX® & SDAX® MEMBER SHAREHOLDER STRUCTURE
THE S&T SHARETECDAX® & SDAX® MEMBER; TARGET: MDAX®
Commerzbank | Buy: EUR 31.00
Hauck & Aufhäuser | Buy: EUR 33.00
Kepler Cheuvreux | Buy: EUR 28.00
Jefferies | Buy: EUR 32.00
Ennoconn Corporation - 26.6%
Allianz Global Investors GmbH - 5.0%
Freefloat - 68.4% - includes as follows:
BNP Paribas Asset Management - 4.6%
Ninety One SA (Pty) Ltd - 4.0%
S&T Management - 2.0%
Share Buyback Program I 2020 completed: purchase of 390,373 shares with maximum an average price of EUR 16.74 per share
0
1,000,000,000
2012 2013 2014 2015 2016 2017 2018 2019
One new analysts will take on coverage of S&T AG
22
Pareto Securities | Buy: EUR 33.00
Warburg Research | Buy: EUR 27.50
Raiffeisen Centrobank | Hold: EUR 22.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
0
200
400
600
800
1000
1200
1400
1600
1800
S&T AG TecDAX Index SDAX S&T AG EUR
› PEC Program boosts cash flow and EBITDA conversion
› Sufficient cash to benefit from discounted M&A during and post-Corona
› Leading technologies in the growing IIoT market
OPPORTUNITIES
› Economic crisis due to Covid-19 crisis
› Big players enter our niches in Industry 4.0
› US-Dollar development
› Address right technology trends
RISKS
› Minimum Guidance for 2020:› Revenues: 1,150 Mio.› EBITDA: 115 Mio.
› 2 Bn. revenues at > 11% EBITDA in 2023
› Ongoing Working Capital improvement
› MDAX membership
TARGETS
› Revenue growth of 13.7% and EBITDA growth of 17.4%
› PEC Program is progressing well› Operating cash flow improvements continue› Finance cost further optimized
› 2 successful acquisitions completed› several M&A opportunities in the pipeline
ACHIEVEMENTS
SUMMARY
23
APPENDIXEXPERIENCED MANAGEMENT TEAM
HANNES NIEDERHAUSER CEO RICHARD
NEUWIRTHCFO
PETER STURZCOO Services EE
MICHAEL JESKECOO Services DACH
CARLOS QUEIROZCOO IoT Europe
EXECUTIVE BOARD
EXTENDED MANAGEMENT BOARD
Michael RiegertEVP Transportation
Olga SinenkoEVP Smart Energy
Steve ChenEVP Asia
Robert CourteauEVPAmerica
Christoph NeumannVP Technology
Andy MasonVPAvionics
Bernhard GünthnerVP Smart Factory
MANAGEMENT› Trainee program for interim management for M&A/restructuring/integration
24
ZeljkoPuljicEVP Communication
APPENDIXS&T KEY FIGURES
In Mio. EUR 2016 2017 2018 2019 6M 2019 6M 2020
Revenues 503.7 882.0 990.9 1,122.9 473.8 538.7
Gross Profit 168.9 315.0 346.5 407.5 174.5 211.6
Gross Margin 33.5% 35.7% 35.0% 36.3% 36.8% 39.3%
EBITDA 34.4 68.1 90.5 111.7 44.3 52.0
EBITDA Margin 6.8% 7.7% 9.1% 9.9% 9.4% 9.7%
EBIT before PPA amortization 28.2 47.9 67.3 70.1 25.8 29.4
Net Income after NCI 20.4 29.4 48.5 49.1 18.2 19.6
EBITDA Interest Coverage Ratio* 7.9 9.8 14.5 17.7 14.5 16.4
Net Cash ** 32.0 101.8 52.7 29.5 -101.1 -5.7
Working Capital *** 119.2 121.5 156.4 153.9 221.3 168.9
Equity Ratio 36.0% 41.2% 43.3% 31.4% 31.8% 33.5%
Operating Cashflow 61.4 44.9 35.5 83.4 -11.7 27.2
Employees 3,786 3,849 4,248 4,934 4,770 4,936
* Definition EBITDA Interest Coverage Ratio: EBITDA divided by interest expenses (excl. interest expenses related to leasing liabilities according to IFRS 16)** Definition Net Cash: Cash and cash equivalents less non-current and current financing liabilities (excl. liabilities from leasing according to IFRS 16)*** Definition Working Capital: Inventories plus trade receivables less trade payables (excl. IFRS 15 contract assets and liabilities)
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APPENDIX ESG IMPROVEMENTS - ACTION PLAN FOR 2020 AND BEYOND
MENTORING PROGRAM
New Mentoring Program from and for future female S&T leaders
S&T TOP AND MIDDLE MANAGEMENT
Increase share of women in S&T management positions from 18% up to 25 % until 12/2021 equaling the current gender distribution in S&T
SUPERVISORY BOARD
Chairman of the Supervisory replaced by female successor in June 2020, also next proposal intended to be a female candidate
COMMUNICATION
Increase communication with “Kleinaktionären”
LONG TERM COMPENSATION
New long term Executive Remuneration/Compensation system
AUDIT COMMITTEE
New composition of audit committee -> increase of audit committee independency
VIDEO & HOMEOFFICE
Further promotion of video-conferencing and home office work to further optimize travel impact
RENEWABLE ENERGY
Expansion of photovoltaic system under usage of S&T Smart Energy products
TRANSPORT
Increase conversion of the fleet to e- and hybrid-vehicles, promotion of train travel, public transport ticket at various S&T locations
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DISCLAIMER
This document includes 'forward-looking statements'. Forward-looking statements are all statements, which do not describe facts of the past, but containing the words "believe", "estimate", "expect", "anticipate","assume", "plan", "intend", "could", and words of similar meaning. These forward-looking statements are subject to inherent risks and uncertainties since they relate to future events and are based on currentassumptions and estimates of S&T AG, which might not occur at all or occur not as assumed. They therefore do not constitute a guarantee for the occurrence of future results or performances of S&T AG. The actualfinancial position and the actual results of S&T AG, as well as the overall economic development and the regulatory environment may differ materially from the expectations, which are assumed explicitly or implicitly inthe forward-looking statements and do not comply to them. Analysts and investors, and any other person or entity that may need to take decisions or prepare or release opinions about the shares / securities issued byS&T AG are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this document. Past performance cannot be relied upon as a guide to future performance.
Except as required by applicable law, S&T AG undertakes no obligation to revise these forward-looking statements to reflect events and circumstances after the date of this presentation, including, without limitation,changes in S&T’s business or strategy or to reflect the occurrence of unanticipated events. The financial information and opinions contained in this document are unaudited and are subject to change without notice.This document contains summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information,including if it is necessary, any fuller disclosure document published by S&T AG. None of the Company, its subsidiaries or affiliates or by any of its officers, directors, employees, advisors, representatives or agents shallbe liable whatsoever for any loss however arising, directly or indirectly, from any use of this document its content or otherwise arising in connection with this document.
This document or any of the information contained herein do not constitute, form part of or shall be construed as an offer or invitation to purchase, subscribe, sale or exchange, nor a request for an offer of purchase,subscription, sale or exchange of shares / securities of S&T AG, or any advice or recommendation with respect to such shares / securities. This document or a part of it shall not form the basis of or relied upon inconnection with any contract or commitment whatsoever.
This document does not constitute an offer to purchase securities in the United States, Canada, Australia, South Africa and Japan. Securities, including the bond of S&T AG may not be sold or offered for sale within theUnited States or to or for the account of / in favor of US citizens (as defined in Regulation S under the U.S. Securities Act of 1933 in the current version (the "Securities Act") unless they are registered under theregulations of the Securities Act or unless they are subject to an exemption from registration. Neither S&T AG nor any other person intend to register the offer or a part thereof in the United States or to make a publicoffer of the securities in the United States.
S&T AGIndustriezeile 35
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IR Contact:
+43 (1) 80191 - 1196
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