Investor Presentation The leading light in Photonics. August 2020 - PowerPoint PPT Presentation

Investor Presentation The leading light in Photonics. August 2020

Disclaimer This presentation can contain forward-looking statements that are based on current expectations and certain assumptions of the management of the Jenoptik Group. A variety of known and unknown risks, uncertainties and other factors can cause the actual results, the financial situation, the development or the performance of the company to be materially different from the announced forward-looking statements. Such factors can be, among others, pandemic diseases, changes in currency exchange rates and interest rates, the introduction of competing products or the change of the business strategy. The company does not assume any obligation to update such forward-looking statements in this document in the light of future developments. Jenoptik Investor Relations Presentation 2

Agenda 01 Overview and strategy 02 Financials H1/2020 and outlook 03 Appendix Jenoptik Investor Relations Presentation 3

Jenoptik – a leading player in attractive photonic sectors Photonics is moving markets and changing the world around us. Jenoptik has the skills, experience and proven track record to 1991 lead the way. Foundation ~4,100 Attractive photonic applications Attractive markets Photonics market: ~600bn euros, CAGR 5-6% Employees ~1.4bn € Leading market Customer-oriented, international partner, Market cap positions leading market positions on a global scale >80 Countries worldwide Strong financial Strong financial position for accelerated base growth and margin expansion 2019 Revenue 855.2m € EBITDA 15.7% Transforming Jenoptik into a focused Clear targets technology group Jenoptik Investor Relations Presentation 4

Focused divisions and technology synergies …………….………….….……………. Photonic ……….………….………….……. …..…... Mechatronic .……. LIGHT & OPTICS LIGHT & PRODUCTION LIGHT & SAFETY OEM-Business B2B-Business B2G-Business     Development & production Engineering business with Providing imaging based Mechatronic solutions for partner for OEM customers focus on smart solutions for Public Safety in partners in the Aviation, manufacturing and process combination with intelligent Security and Defense  Optical components, modules automation solutions for data management Industries and systems for the semi-  industrial customers Carve-out from former Defense conductor manufacturing, & Civil Systems division  communication industries Using primarily Optical and (Aviation, Power Systems, and biophotonics Photonic technologies, esp. Energy & Drive) for the automotive industry: Photonics at the heart of Tailored solutions in Driving production Making roads and our OEM customers challenging and regulated efficiency with photonics communities safer products markets Jenoptik Investor Relations Presentation 5

Transforming Jenoptik into a focused technology group More Focus More Innovation More International Leverage core Step-up R+D work Build a truly global competencies enterprise Jenoptik Investor Relations Presentation 6

Agenda 01 Overview and strategy 02 Financials H1/2020 and outlook 03 Appendix Jenoptik Investor Relations Presentation 7

1st half-year 2020: Jenoptik with good business in major areas Revenue  329.0 million euros (prior year adjusted* 373.4m euros) EBITDA  Adjusted 42.2 million euros (prior year 54.3m euros) Order intake  333.9 million euros (prior year adjusted* 381.6m euros) Free cash flow  Adjusted 17.8 million euros (prior year  14.6m euros) Business  Corona pandemic had varying impact on Jenoptik’s development businesses  Measures for site optimization/restructuring and cost reduction implemented  External growth was accelerated through acquisition of INTEROB (February) and TRIOPTICS (July) * without Hillos Jenoptik Investor Relations Presentation 8

Acquisition of TRIOPTICS – decisive step in Jenoptik’s strategic process of focusing on photonics TRIOPTICS is a leading international supplier of test equipment and manufacturing systems for optical components and sensors in the digital world (2019: revenue ~80m euros, EBITDA margin ~27%) Combination of complementary technology portfolios Focus on high-growth industries of the future Expansion of global presence Acceleration of growth Expansion of profitability and cash flow Substantial synergies Jenoptik Investor Relations Presentation 9

As expected, demand lower than in prior year due to the corona pandemic; book-to-bill ratio stable Order intake in million euros Order backlog in million euros 600 600  12.5% +2.9% 478.0 464.7* 400 400 381.6* 333.9 200 200 0 0 Dec 31, 2019 Jun 30, 2020 H1/2019 H1/2020  Project postponements and order cancellations  Approx. 60% to be converted to revenue led to decline in order intake, especially in the in 2020 (prior year approx. 65%) Light & Production division  INTEROB’s order backlog: 13.9 million euros  H1/2019: order intake of 392.5m euros in total,  Order backlog 2019 incl. Hillos: 466.1 million euros including orders of Hillos of 10.9 million euros  Frame contracts: 44.4 million euros  Book-to-bill ratio 1.02 (prior year adjusted 1.02) (31/12/19: 49.9m euros) *adjusted = without Hillos Jenoptik Investor Relations Presentation 10

Revenue decline attributable to COVID-19 pandemic and development in the automotive sector Revenue in million euros 500,0  11.9% 400,0 373.4* 300,0 329.0  15.7% 259.5 200,0 212.7 195.1* 178.3* 164.4 164.6 100,0 0,0 *adjusted = without Hillos Q1/19 Q2/19 H1/19 Q3/19 Q4/19 Q1/20 Q2/20 H1/20  Good business with the semiconductor equipment industry and public-sector customers continued  As expected, significant reduction in the Light & Production division (business with automotive industry)  Revenue contribution of INTEROB: 5.3 million euros  In H1/2019: total revenue 383.1 million euros included contribution of Hillos of 9.7 million euros Jenoptik Investor Relations Presentation 11

Foreign revenue again at ~74 percent; Asia/Pacific with strongest decline (in %) due to pandemic H1/2020 17.0 Middle H1/2019 4:9% East/Africa 16.2 37.2  23.6% Asia/Pacific 48.7* 89.2  14.2% Americas 104.0* 100.5 0:6% Europe 99.9* 85.0  18,7% Germany 104.6* *adjusted = without Hillos Jenoptik Investor Relations Presentation 12

Profitability improved in the course of the year 2020 EBITDA in million euros  Adjusted EBITDA affected by lower 60 revenue  22.3%  Effects from structural and portfolio 50 54.3* projects of minus 4.4 million euros 40 42.6 42.2*  Adjusted EBITDA margin of 12.8% 37.4 30 30.5* (prior year 14.5%) 20 24.9* 23.8  Not adjusted: EBITDA 37.9 million euros 17.3* 10 / margin 11.5% 0 Q1/19 Q2/19 H1/19 Q3/19 Q4/19 Q1/20 Q2/20 H1/20 EBIT in million euros  Adjusted EBIT margin of 6.0% 60 (prior year 8.7%) 50  39.7%  PPA effects of  3,6 million euros (prior year  3,5 million euros) 40 30  Not adjusted: EBIT 15.6 million euros / 32.5* 30.8 20 25.9 margin 4.7% 19.7* 19.6* 10 13.5* 12.8 *adjusted for effects arising from site optimization, 6.2* 0 restructuring as wells as costs related to M&A Q1/19 Q2/19 H1/19 Q3/19 Q4/19 Q1/20 Q2/20 H1/20 activities Jenoptik Investor Relations Presentation 13

Lower revenue as well as effects arising from structural and portfolio measures burdened earnings figures In million euros H1/2020 H1/2019 329.0 373.4* Revenue  Gross margin declined due to higher fixed costs components Gross margin 33.3% 36.0%  Functional costs decreased by 9.2% Functional costs 93.5 103.0  R+D: slightly below prior year 37.9 / 42.2 54.0 / 54.3 EBITDA / adjusted  Selling: marked decline 15.6 / 19.6 32.2 / 32.5 EBIT / adjusted  Administrative: slightly reduced  2.2  1.5 Financial result  Tax rate at 20.8% (prior year 21.1%), cash-effective tax rate of 22.7% Earnings before tax 13.4 30.7 (prior year 15.2%) Earnings after tax 10.6 24.2 0.18 0.42 Earnings per share (euros) *adjusted = without Hillos Jenoptik Investor Relations Presentation 14

Free cash flow noticeably improved; good liquidity situation; active working capital management  Working capital ratio at 26.9% slightly lower In million euros H1/2020 H1/2019 than at the year end 2019, decline compared with the same period in the prior year (31/12/19: 25.5% / 30/06/19: 30.8%) Operating profit before 38.1 53.5 adjusting working capital  Cash flow from operating activities improved significantly, as the increase in Changes in working inventories was more than offset by the  3.3  51.5 capital, provisions and reduction in trade receivables other items  Financial resources available at short Cash flows from operating notice of more than 123 million euros activities before income 34.8 1.9 (31/12/19: almost 170m euros) taxes  Capital expenditure grew to 21.2 million euros (prior year 16.8m euros) Cash flows from operative  18.8  16.6 investing activities  Net debt came to 26.6 million euros (31/12/19: minus 9.1m euros), in spite of  14.6 Free cash flow (before 16.0 paying the first instalments for INTEROB, interest and taxes) repayment of a debenture loan and higher capital expenditure (adjusted) (17.8)  Equity ratio remained at a good level of 61.3% (31/12/19: 60.5%) Jenoptik Investor Relations Presentation 15