DIGITIZATION POSSIBLE Investor Relations Presentation 3rd quarter - PowerPoint PPT Presentation

WE MAKE DIGITIZATION POSSIBLE Investor Relations Presentation 3rd quarter 2018

We make digitization possible From the sensor to service Airport Stadium Shopping center Industrial estate Power Disposal plant site Central station Hospital Hotel Office building Police Bank Logistics Waterworks November 27, 2018 2

Tuned to the pulse of the digital future What benefits do our customers expect from digitization? 60 % 55 % 30 % 53 % 50 % Revenue New products, Productivity gains New information Cost reduction increases improved customized acquisition product offer November 8, 2018 3 Source: Horváth & Partners study „Digital Value 2018“

Who we are euromicron AG is a medium-sized technology group Our target market: The Internet 1,865 of Things Employees ** (IoT) Our IoT solutions: 1998 Vertical integration vom IPO on the Prime Standard From the sensor to service 7,176,398 registered shares Solutions from a single source: from the Market capitalization ~ 40 Mio. € shop floor to buildings to the Smart City Rooted in Germany, Sales* with international focus: 332.9 Represented in 11 countries Million € Active in more than 50 countries Specialized in the fields of Equity ratio**  Digital Buildings 28.2%  Smart Industry  Critical Infrastructures * Business figures 2017 November 8, 2018 4 ** Business figures 9 M 2018

Our structure Vertical integration in three segments Smart Critical Distribution Buildings Infrastructures SERVICE APP- LICATION Cybersecurity PLATFORM INFRA- STRUCTURE TERMINAL DEVICE & SENSORS November 8, 2018 5

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) declined by 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 November 8, 2018 6

Essential topics 2018 1) Winning the Europe-wide radio broadcasting competition of Südwestrundfunk (SWR) 2) Smart Building Solutions Concept of MICROSENS Digitalisation of Building Automation with Intelligent Network Components 3) Change in the Executive Board May 2018: Jörn Trierweiler takes over responsibility for "Operations, Strategy and IT" from Jürgen Hansjosten 4) Changes on the Supervisory Board June 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 2018 euromicron Group showcases solutions for creating intelligent transport infrastructures 7) DB Station&Service AG extends video surveillance master agreement 8) euromicron AG intensifies transformation process Structural adjustments lay solid foundation for profitable growth November 8, 2018 7

Outlook 2018 Sales EBITDA margin (operating) Working Capital Ratio (in million EUR) (in %) (in %) 360 5.0 340 330 4.0 4.0 310 12.9 332.9 4.1 2.0 10.0 2017 2018E 2018E 2017 2018E 2018E 2017 2018E (old) (new) (old) (new) November 8, 2018 8

Our positioning We plan, implement and operate digitized networks Own technologies System integration Smart Services Partner technologies Building management system 40 billion € Intelligent control can German industry companies are save energy - up to investing annually in industry 4.0 Over five years, over 80% of the applications by 2020. companies will have digitized their value chain. Smart Industry Industrie 4.0 Digital Digitalisierte Critical Kritische Gebäude Buildings Infrastructures Infrastrukturen November 8, 2018 9 Sources: PwC study „ Industrie 4.0“; LMD -study of the university of Biberach, Prof. Dr. Becker

Extract of our customer projects 20 years experience with future Transport, traffic and logistics Public sector, Health Care Carrier and utilities Industrie and retail Construction and facilities Banking and Insurance November 8, 2018 10

Tuned to the pulse of the digital future The growing connectivity offers euromicron in Germany an enormous market potential  Digital  Smart  Critical  Smart Buildings Industry Infrastructures Services +21 % +19 % +16 % +14 % … annual increase in the … estimated growth for … annual increase of the … estimated growth in German market in the area Smart Industry solutions German Smart City market communication and network of "building automation". in Germany. until 2022. security in Germany. November 8, 2018 11 Sources: eco, Arthur D. Little: Smart City Market 2017-2022; Industrial-IoT-Market 2017-2022

euromicron AG Zum Laurenburger Hof 76 60594 Frankfurt/Main Germany Phone: +49 69 631583-0 Fax: +49 69 631583-17 info@euromicron.de www.euromicron.de

Disclaimer PERSONAL & STRICTLY CONFIDENTIAL – REPRODUCTION PROHIBITED This presentation contains statements about the future in connection with developments in the overall economy, competition and technology, developments on the capital markets and in business, the financial position and results of euromicron AG and its group companies. Such predictive statements are not historical facts. They are based on planning, opinions, estimates and assessments and are 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 from the facts, interpretations or assessments in the presentation. euromicron AG does not assume any responsibility for decisions to purchase 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 your own analyses, judgments and/or market assessments and to bear sole responsibility for such decisions. November 8, 2018 13

9 months 2018 259.0 in million EUR 2017 2018 244.0 243.4 (Ratio 16.6 %) ( Ratio 13.5 %) 233.0 140.6 139.5 57.0 43.4 7.2 4.8 -3.9 -15.6 Consolidated sales EBITDA New orders* Order books* Working Capital Adjusted (operating) after factoring operating cash flow * Continuing core business operations (excluding divisions that have since been closed November 8, 2018 14 or sold in the meantime)

9 months 2018 Cash flow development (Sept 30, 2018) in million EUR -6,852 -6,855 Effects from factoring and customers’ monies to be passed on Adjusted operating cash flow improved -3,853 significantly by EUR 11.7 million. -10,708 Mainly due to positive effects from the reduction in working capital. -15,629 Adjusted cash flow from operating activities -22,481 Cash flow from operating activities acc. to statement of cash flows 9 M 2017 9 M 2018 November 8, 2018 15

9 months 2018 Sales by segments (Sept 30, 2018) in million EUR 2017 2018 244.0 233.0 137.9 Smart Buildings 128.2 88.7 Critical Infrastructures 85.4 16.7 Distribution 19.2 0.7 Other segments 0.2 euromicron * The segments are showing external sales. November 8, 2018 16

9 months 2018 EBITDA operating by segments (Sept 30, 2018) in million EUR 7.2 2017 2018 3.0 Smart Buildings 1.3 4.8 4.8 Critical Infrastructures 2.8 2.8 Distribution 3.7 -3.4 Other segments -3.0 euromicron November 8, 2018 17

9 months 2018 Working Capital (after factoring) by segments (Sept 30, 2018) in million 57.0 56.8 2017 2018 EUR 46.2 43.4 17.0 13.7 4.7 4.0 -20.9 -21.2 euromicron Smart Buildings Critical Distribution All other segments Infrastructures and reconciliation Working Capital Ratio 28.5% 25.4% 18.3% 17.7% 16.6% 13.7% 13.5% 11.6% k.A . k.A . N/A N/A euromicron Smart Buildings Critical Distribution All other segments Infrastructures and reconciliation November 8, 2018 18