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

Investor Presentation The leading light in Photonics. March 2020

Disclaimer At present, it is not possible to reliably assess to what extent the spread of SARS-CoV-2 will affect Jenoptik’s business in the current fiscal year. The forecast made by the Executive Board in the Annual Report was based on the knowledge at the time of preparing the report resp. at the date of publishing the preliminary figures at the beginning of February, and is, therefore, subject to change. In view of the current situation, the Executive Board is expecting noticeable impacts at least in the first half of the year. 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 the light of future developments. Jenoptik Investor Relations Presentation 2

Agenda 01 Overview and strategy 02 Financials 2019 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 >4,000 Attractive photonic applications Attractive markets Photonics market: ~600bn euros, CAGR 5-6% Employees ~830m € 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

Attractive photonic applications at the core of Jenoptik World market Jenoptik will focus on : in Photonics: 22 bn € 54 bn ~ € 600 bn € 36 bn  Information processing (i.e. semiconductor equipment € 31 bn manufacturing and communication) Photonic € 27 bn components  Biophotonics Σ 120-140bn € € 152 bn  31 bn € Smart manufacturing  Sensing, monitoring, measurement (public safety, traffic solutions) € 72 bn  Total addressable market for Jenoptik: ~300bn; CAGR ~5-6% Solar PV & Alternative Energy Lighting & Displays Consumer & Entertainment Defense, Security, Law Enforcement We aim at photonic applications Advanced Manufacturing Sensing, Monitoring, Measurement allowing for technical differentiation. BioPhotonics Optical Information Processing Source: SPIE (2016), Agileon Strategic Consultancy Jenoptik Investor Relations Presentation 7

Agenda 01 Overview and strategy 02 Financials 2019 and outlook 03 Appendix Jenoptik Investor Relations Presentation 8

Major events in 2019 Strategic priorities 2019  CEO confirmed in office for another five-year Speed up of term innovation  Substantial investments in expansion and modernization of our locations  Several orders received from the automotive Growth in Asia industry in the field of automation & integration  New corporate structure has been in place since January 1, 2019 Operational excellence in our production processes January 17, 2020: Decision of the Executive Board to stop the process of selling VINCORION; VINCORION will be operated as an independent investment of Jenoptik Jenoptik Investor Relations Presentation 9

Momentum increased in the course of the year; group revenue in 2019 higher than in prior year Revenue in million euros 1000 +2.5% 855.2 834.6 750 500 +7.6% 250 259.5 241.2 212.7 208.7 194.8 199.1 189.9 184.0 0 Q1/18 Q2/18 Q3/18 Q4/18 2018 Q1/19 Q2/19 Q3/19 Q4/19 2019  Revenue grew in the course of the year, as expected  Good business with semiconductor equipment industry and in the Automation & Integration area  Contribution of the companies acquired in 2018: 66.4 million euros (prior year 37.0m euros)  More difficult economic environment as well as export restrictions affected development; high revenue contribution from the toll monitoring project in prior year (approx. 26m euros) makes comparison difficult Jenoptik Investor Relations Presentation 10

Significant revenue growth in the Americas in 2019; foreign revenue ~73 percent (prior year 71%) 2018 EUROPE 2019 GERMANY -1.1% -2.7% 485.2 480.0 240.5 234.0 AMERICAS +15.4% 239.7 ASIA / 207.7 PACIFIC -3.6% AFRICA / MIDDLE  Rise in the Americas primarily attributable 100.8 97.2 EAST to Prodomax and higher revenue by -6.3% Light & Optics  USA 194.2 million euros (+14.1%) 38.3  China: 37.3 million euros (-11.8%) 40.8 Canada 40.2 million euros (+92.2%) Singapore: 27.8 million euros (+15.9%) Jenoptik Investor Relations Presentation 11

Increase in revenue in major photonic core markets Revenue by market (prior year figures in brackets) Other Medical technology Automotive/ Mechanical 6% 4% engineering (5%) (5%)  Aviation / Traffic Automotive/Mechanical engineering: 17% good demand in the automation & 35% (19%) integration area, contribution by acquired (34%) companies  Revenue with semiconductor equipment and medical technology industries grew 19%  17.3% of revenue attributable to Top 3 (19%) customers (prior year 18.0%) 20% Security / Defense (18%) Semiconductor equipment Jenoptik Investor Relations Presentation 12

Continuous rise in EBITDA and EBIT over the year EBITDA in million euros 150  EBITDA impacted by +5.0%  Contributions by acquired 120 134.0 127.5 companies for the full year 90  Positive effects from first-time 60 application of IFRS 16 30  Higher functional costs 42.6 38.5 37.4 32.8 30.2 27.7 28.5 23.8  EBITDA margin at 15.7% 0 Q1/18 Q2/18 Q3/18 Q4/18 2018 Q1/19 Q2/19 Q3/19 Q4/19 2019 (prior year 15.3%) EBIT in million euros 120  EBIT margin at 10.4% (prior year  6.3% 90 11.4%) 94.9 88.9  EBIT contribution by companies 60 acquired in 2018 came to 5.8 million euros (prior year  0.5m euros), 30 30.8 28.2 25.9 incl. PPA effects of  5.3 million euros 20.8 21.9 23.9 19.4 12.8 0 (prior year  10.5m euros) Q1/18 Q2/18 Q3/18 Q4/18 2018 Q1/19 Q2/19 Q3/19 Q4/19 2019 Jenoptik Investor Relations Presentation 13

Decline in EPS due to significantly higher tax rate  Cost of sales grew at a stronger rate than revenue due to higher material and personnel costs Revenue 855.2 834.6  Rise in functional costs by 1.7%  R+D: lower than in prior year (R+D Gross margin 34.1% 35.1% output at prior-year level) Functional costs 193.9 190.6  Selling: increase due to expansion of international distribution and in EBITDA 134.0 127.5 connection with acquisitions  Administrative: among other things EBIT 88.9 94.9 due to higher personnel costs, group- internal projects and companies Financial result -3.7 -3.5 acquired in 2018 Earnings before tax 85.2 91.4  Tax rate grew to 20.6% as a result of deferred tax expenses due to use of tax Earnings after tax 67.6 87.4 losses carried forward (prior year 4.4%, deferred tax income); cash-effective tax Earnings per share (euros) 1.18 1.53 rate increased to 13.3% resulting from higher share of earnings generated abroad (prior year 12.0%) Jenoptik Investor Relations Presentation 14