Investor Relations Presentation 3rd quarter 2018 WE MAKE DIGITIZATION POSSIBLE
Investor Relations Presentation
3rd quarter 2018
WE MAKEDIGITIZATION POSSIBLE
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
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
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
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
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
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
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
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
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
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
euromicron AG
Zum Laurenburger Hof 7660594 Frankfurt/MainGermany
Phone: +49 69 631583-0Fax: +49 69 631583-17
www.euromicron.de
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
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)
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.
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.
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
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