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Investor Relations Presentation 3rd quarter 2018 WE MAKE DIGITIZATION POSSIBLE

WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

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Page 1: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

Investor Relations Presentation

3rd quarter 2018

WE MAKEDIGITIZATION POSSIBLE

Page 2: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

Airport

Industrial estate

Stadium

Hospital

Power plant

Shoppingcenter

Bank

Office buildingHotel

Central station

Disposal site

Waterworks

Police

Logistics

We make digitization possibleFrom the sensor to service

November 27, 2018 2

Page 3: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

Tuned to the pulse of the digital future

What benefits do our customers expect from digitization?

New information acquisition

50%

New products,improved customized

product offer

30%

Revenue increases

60%

Productivity gains

55%

Cost reduction

53%

Source: Horváth & Partners study „Digital Value 2018“November 8, 2018 3

Page 4: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

Who we are

euromicron AG is a medium-sized technology group

Our target market:

The Internet of Things(IoT)

1,865Employees **

1998IPO on the Prime Standard7,176,398 registered sharesMarket capitalization ~ 40 Mio. €

Our IoT solutions:

Vertical integration vomFrom the sensor to service

Solutions from a single source: from theshop floor to buildings to the Smart City

Rooted in Germany, with international focus: Represented in 11 countriesActive in more than 50 countries

Sales*

332.9Million €

Specialized in the fields of Digital Buildings Smart Industry Critical Infrastructures

Equity ratio**

28.2%

November 8, 2018 4* Business figures 2017

** Business figures 9 M 2018

Page 5: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

TERMINALDEVICE& SENSORS

Our structure

November 8, 2018 5

Vertical integration in three segments

APP-LICATION

PLATFORM

INFRA-STRUCTURE

SERVICE

Cyb

ersecu

rity

Critical Infrastructures

SmartBuildings

Distribution

Page 6: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

November 8, 2018 6

9 months 2018

Structural deficits lead to weaker than expected Group sales and operating EBITDA

Operating cash flow improved by EUR 11.7 million

Working capital ratio (after factoring) declinedby 3.1 percentage points

Order backlog for continuing core business (EUR 140.6 million) up EUR 1.1 million from previous year

Forecast for fiscal year 2018 adjusted

Page 7: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

Essential topics 2018

November 8, 2018 7

1) Winning the Europe-wide radio broadcasting competition of Südwestrundfunk (SWR)

2) Smart Building Solutions Concept of MICROSENSDigitalisation of Building Automation with Intelligent Network Components

3) Change in the Executive BoardMay 2018: Jörn Trierweiler takes over responsibility for "Operations, Strategy and IT" from Jürgen Hansjosten

4) Changes on the Supervisory BoardJune 2018: Dr. Martina H. Sanfleber and Klaus Peter Frohmüller are appointed to the Supervisory Board and assume office of Rolf Unterberger and Dr. Alexander Kirsch

5) 20 years euromicron AG

6) InnoTrans 2018euromicron Group showcases solutions for creating intelligent transport infrastructures

7) DB Station&Service AG extends video surveillance master agreement

8) euromicron AG intensifies transformation processStructural adjustments lay solid foundation for profitable growth

Page 8: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

Outlook 2018

November 8, 2018 8

4.1

2017 2018E (new)

2018E (old)

4.0

EBITDA margin (operating)

(in %)

2017

12.9

10.0

2018E

Working Capital Ratio

(in %)

5.0

2018E (new)

332.9

2017 2018E (old)

Sales

(in million EUR)

340

360

330

310

2.0

4.0

Page 9: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

November 8, 2018 9

Our positioning

We plan, implement and operate digitized networks

Smart ServicesSystem integrationPartnertechnologies

Owntechnologies

DigitalisierteGebäudeDigitalBuildings

KritischeInfrastrukturen

CriticalInfrastructures

Industrie 4.0Smart Industry

Sources: PwC study „Industrie 4.0“; LMD-study of the university of Biberach, Prof. Dr. Becker

40billion €

German industry companies are

investing annually in industry 4.0

applications by 2020. Over five years, over 80% of the

companies will have digitized their

value chain.

Building management system

Intelligent control can

save energy - up to

Page 10: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

Extract of our customer projects

November 8, 2018 10

20 years experience with future

Carrier andutilities

Banking andInsurance

Construction and facilities

Public sector, Health Care

Transport, trafficand logistics

Industrie andretail

Page 11: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

November 8, 2018 11

Tuned to the pulse of the digital future

The growing connectivity offers euromicron in Germany an enormous market potential

SmartIndustry

CriticalInfrastructures

+21 % +19 % +16 %

… annual increase in the

German market in the area

of "building automation".

… estimated growth for

Smart Industry solutions

in Germany.

… annual increase of the

German Smart City market

until 2022.

DigitalBuildings

Smart Services

+14 %

… estimated growth in

communication and network

security in Germany.

Sources: eco, Arthur D. Little: Smart City Market 2017-2022; Industrial-IoT-Market 2017-2022

Page 12: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

euromicron AG

Zum Laurenburger Hof 7660594 Frankfurt/MainGermany

Phone: +49 69 631583-0Fax: +49 69 631583-17

[email protected]

www.euromicron.de

Page 13: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

November 8, 2018 13

PERSONAL & STRICTLY CONFIDENTIAL – REPRODUCTION PROHIBITED

This presentation contains statements about the future in connection with developments in the overall economy, competition andtechnology, developments on the capital markets and in business, the financial position and results of euromicron AG and its groupcompanies. Such predictive statements are not historical facts. They are based on planning, opinions, estimates and assessments andare subject to risks and uncertainties that may negatively impact or counteract anticipated developments and results.

Readers of this presentation are expressly warned against using such statements, forecasts and evaluations as a basis for decisions,in particular as the sole basis for investment decisions, without checking them first. The same applies to any conclusions drawn fromthe facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions topurchase or invest, of whatever nature, taken on the basis of this presentation.

By accepting this presentation, you agree to take any investment decision relating to the euromicron Group solely on the basis of yourown analyses, judgments and/or market assessments and to bear sole responsibility for such decisions.

Disclaimer

Page 14: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

9 months 2018

November 8, 2018 14

243.4

140.6

Consolidated sales

244.0

-15.6

Adjusted operating cash flow

EBITDA (operating)

Working Capital after factoring

New orders* Order books*

233.0

7.2 4.8

259.0

139.5

57.0

43.4

-3.9

2017 2018

(Ratio 1

6.6

%)

(Rati

o 1

3.5

%)

in million EUR

* Continuing core business operations (excluding divisions that have since been closed or sold in the meantime)

Page 15: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

9 months 2018

November 8, 2018 15

Cash flow development (Sept 30, 2018)

in million EUR

-10,708

-6,855

9 M 2017

-15,629

-6,852

9 M 2018

-3,853

-22,481Cash flow from operating activities

acc. to statement of cash flows

Effects from factoring and customers’

monies to be passed on

Adjusted cash flow from

operating activities

Adjusted operating cash flow improved

significantly by EUR 11.7 million.

Mainly due to positive effects from the

reduction in working capital.

Page 16: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

9 months 2018

November 8, 2018 16

Sales by segments (Sept 30, 2018)

244.0

euromicron

233.0

2017 2018in million EUR

Other segments

Smart Buildings

Critical Infrastructures

Distribution

137.9

88.7

128.2

85.4

16.7

19.2

0.7

0.2

* The segments are showing external sales.

Page 17: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

9 months 2018

17

EBITDA operating by segments (Sept 30, 2018)

euromicron

7.2

4.8

2017 2018in million EUR

1.3Smart Buildings

Critical Infrastructures

2.8Distribution

4.8

3.0

Other segments

2.8

3.7

-3.4

-3.0

November 8, 2018

Page 18: WE MAKE DIGITIZATION POSSIBLE - euromicron AG · the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase

9 months 2018

November 8, 2018 18

Working Capital (after factoring) by segments (Sept 30, 2018)

57.0

euromicron Smart Buildings DistributionCritical Infrastructures

All other segments and reconciliation

43.4

56.8

46.2

17.0 13.7

4.0 4.7

-21.2-20.9

20182017

16.6% 17.7%

Smart Buildingseuromicron DistributionCritical Infrastructures

All other segments and reconciliation

13.5%

28.5%25.4%

13.7%11.6%

18.3%

in millionEUR

Working Capital Ratio

k.A. k.A.N/A N/A