Company Presentation June 2020 Short Portrait Technology company - PowerPoint PPT Presentation

Company Presentation June 2020

Short Portrait Technology company with three segments Adhesives Equipment & Sytems Glass & Lamps What is special at Hönle? Partner of the industrial sector – Development of customised solutions – Niche player FJ 2018/2019 Employees: 590; Sales: €107.7 million; EBIT: €17.0 million; EPS: €2.26 Forecast 2019/2020 The effects of the COVID-19 pandemic on Hönle's business development cannot be reliably assessed at this time. Therefore Dr. Hönle AG withdrew its outlook for the 2019/2020 financial year on 27 April 2020. Page 2

Group Structure Short-Lived Economic Assets Lang-Lived Capital Goods Adhesives Glass & Lamps Equipment & Systems Panacol Elosol GmbH Aladin GmbH Dr. Hönle AG Eltosch Grafix GmbH Steinbach/Ts. (100,0%) Rott am Inn (100,0%) Gräfelfing/München Pinneberg (100,0%) Development, production and sales Development, production and sales Development, production and sales Development and sales Raesch Quarz (Germany) GmbH Eleco Panacol E.F.D. Honle UV France S.à.r.l. Eltosch Grafix America Inc. Gennevilliers, Frankreich (99,9%) Langewiesen (100,0%) Bron, Frankreich (100,0%) Batavia/Chicago (100,0%) Sales Development, production and sales Sales und Service Sales Raesch Quarz (Malta) Ltd. Hönle Electronics GmbH Hoenle UV Technology Trading Ltd. PrintConcept GmbH Shanghai , China (100,0%) Mosta, Malta (100,0%) Dornbirn, Österreich (51,0%) Kohlberg (100,0%) Sales and Service Processing and sales Development, production and sales Development, production and sales UV-Technik Speziallampen GmbH Panacol-USA Inc. Torrington, USA (71,4%) Wümbach/Ilmenau (100,0%) Development, production and sales Development, production and sales Panacol-Korea Ltd. Suwon-si, Südkorea (100,0%) Sales Page 3

Short-Lived Economic Goods - Adhesives UV and light curing adhesives Epoxides Electronics, Displays Consumer Electronics Acrylates Electrically and thermally conductive adhesives Bonding within Medical seconds Smart Cards All-purpose adhesives Casting compounds Optics, Automotive Opto Electronics Engineering Page 4

Fields of Application for Adhesives conformal coating passgenau beschichten electrically conductive adhesives elektrisch leitfähig kleben glob-top Glob-Top frame & fill Frame & Fill silicones Silikone thermally conductive adhesives thermisch leitfähig kleben underfill unterfüllen optoelectronics Optoelektronik die bonding Diebonden SMD adhesives SMD Klebstoffe Page 5

Adhesives for Medical Technology Page 6

Long-Lived Capital Goods - Equipment & Systems Printing and Coating Market LED drying systems Drying systems for for coatings the printing industry Sun Simulation and Surface Disinfection Disinfection of Crashtest lighting food packaging Equipment for Curing Adhesives Production of UV-curing in laboratory optical fibre and electronics Page 7

Application Example Digital Printing Page 8

Project Example Sun Simulation Page 9

Short-Lived Economic Assets - Glass & Lamps Quartz glass Quartz glass tubes Quartz glass rods UV lamps for Disinfection Disinfection of water und Lamps for air surfaces disinfection UV lamps for drying processes Lamps for drying UV lamps for colours and coatings drying adhesives Page 10

Project Example Drinking Water Disinfection Page 11

Sales and Earnings FJ 2018/2019 Earnings Development in T€ 2018/2019 2017/2018 +/- % Revenue 107,747 126,492 -14.8 Gross profit 74,324 86,349 -13.9 Operating result (EBIT) 17,003 30,687 -44.6 EBIT margin as a % 15,5 23,9 -35.2 Earnings before taxes (EBT) 16,872 30,397 -44.5 Consolidated profit for the year 12,396 21,726 -42.9 Earnings per share in € 2.26 3.94 -42.6 Sales by Region in T€ 50.000 43.690 42.573 45.000 40.000 36.224 35.000 32.289 2017/2018 30.000 26.645 25.467 25.000 2018/2019 20.000 15.000 9.643 8.770 10.000 5.119 3.819 5.000 0 Germany EU Asia North America ROW Page 12

Sales and Earnings FJ 2018/2019 Sales by Segments in T€ (adjusted) 70.000 57.952 60.000 52.133 47.097 50.000 2017/2018 40.000 33.893 2018/2019 30.000 21.720 21.443 20.000 10.000 0 Equipment / Systems Glass / Lamps Adhesives Operating Result by Segments in T€ 25.000 22.125 20.000 2017/2018 15.000 11.674 2018/2019 10.000 7.568 5.000 3.471 1.859 994 0 Equipment / Systems Glass / Lamps Adhesives Page 13

Cash Flow and Financial Position FJ 2018/2019 Cash Flow and Liquidity Development in T€ 2018/2019 2017/2018 +/‐ % Cash generated from operations 23,062 27,877 ‐17.3 Cash flow from operating activities 16,924 24,216 ‐30.1 Cash flow from investing activities ‐19,136 ‐10,627 ‐80.1 Cash flow from financing activities 4,682 ‐6,814 168.7 Change in cash and cash equivalents 2,539 6,821 ‐62.8 Statement of Financial Position in T€ 30/09/2019 30/09/2018 +/‐ % Non‐current assets 71,877 54,275 32.4 Current assets 71,320 71,248 0.1 Equity 90,122 87,250 3.3 Non‐current liabilities 30,395 12,922 135.2 Current liabilities 23,630 25,351 ‐6.8 Total assets 144,147 125,523 14.8 Page 14

Sales and Earnings HJ 2019/2020 Earnings Development in T€ 01/10/19 – 31/03/20 01/10/18 – 31/03/19 +/- % Revenue 50,853 55,990 -9.2 Gross profit 34,031 39,732 -14.4 Operating result/EBIT 5,786 10,187 -43.2 Earnings before tax/EBT 5,678 10,073 -43.6 Consolidated profit/loss 4,393 7,151 -38.6 Earnings per share in € 0.81 1.30 -37,7 Sales by Segment in T€ 30.000 28.382 26.764 25.000 20.000 16.639 01/10/2018- 14.886 31/03/2019 15.000 01/10/2019- 10.969 31/03/2020 9.202 10.000 5.000 0 Adhesives Equipment/Systems Glass & Lamps Page 15

Cash Flow and Financial Position HJ 2019/2020 Cash Flow and Liquidity Development in T€ 01/10/19 – 31/03/20 01/10/18 – 31/03/19 +/- % Cash generated from operations 4,909 10,289 -52.3 Cash flow from investing activities -15,648 -3,896 -301.6 Cash flow from financing activities 16,219 650 2,395.2 Change in cash and cash equivalents 2,643 3,226 -18.1 Statement of Financial Position in T€ 31/03/2020 30/09/2019 +/- % Non-current assets 91,260 71,877 27.0 Current assets 76,010 71,320 6.6 Equity 94,763 90,122 5.2 Non-current liabilities 49,078 30,395 61.5 Current liabilities 24,380 23,630 3.2 Total assets 168,220 144,147 16.7 Page 16

Outlook Adhesives Segment - Orders with a major customer in the sensor technology sector are expected to be lower - Expansion of the customer base and thus reduction of dependency on major customers - All major smartphone manufacturers are now customers of the Hönle Group - Further increase in personnel in the areas of sales, development and application technology - Strong business development expected in the medium to long term Page 17

New Construction Panacol Elosol GmbH Steinbach near Frankfurt, Germany Page 18

Outlook Equipment & Systems Segment - Expansion of the business relationship with strategic customers from the printing press industry - Expansion of the product range in the printing area - Opening up new sales potential outside of UV drying - Expansion of the product range with flash lamps for surface disinfection - Expansion of the product range with powerful UVC air disinfection and surface disinfection systems - Sales and earnings in the 2019/2020 financial year below the previous year's values Page 19

Hauptversammlung 26.05.2020 Seite 20 UVC radiation to deactivate SARS-CoV-2 viruses - scientifically proven

New Construction Dr. Hönle AG Office and production Logistics Seite 21 Gilching near Munich, Germany Page 21

Outlook Glass & Lamps Segment - Merger of two production locations in the lamp production - Significant cost advantages through more efficient manufacturing and reduction of overhead - Increase in production capacity for the ballast water disinfection business area - Significant reduction in sand prices at Raesch Quarz Germany - Expansion of sales capacities at RQG - Expansion of the management at RQG - The quartz glass market is expected to pick up in the second half of the year Page 22

New Construction UV-Technik Speziallampen GmbH Ilmenau near Erfurt, Germany Page 23

Shareholder Structure Number of shares: 5.512.930 As at: 04/2020 Source: Dr. Hönle AG, Bloomberg Page 24