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O D D O B H F G E R M A N C O N F E R E N C E
F R A N K F U R T / M A I N , 1 9 . / 2 0 . F E B R U A R Y 2 0 1 9
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T E C H N O L O G Y- D R I V E N G E R M A N „ M I T T E L S TA N D “ I N O N E S H A R E
H I D D E N C H A M P I O N S
T H I S I S G E S C O
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B U S I N E S S M O D E LS T R AT E G Y N E X T L E V E LF I N A N C I A L Y E A R 2 0 1 8 / 2 0 1 9G E S C O S H A R E M & AA P P E N D I X
OV E R V I E W
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B U S I N E S S M O D E L
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Industrial SMEs including market and technology leaders Eighteen companies operating under the roof of GESCO AG Flexible, operationally independent companies that benefit from
being part of a strong group Innovative technology „Made in Germany“ for global markets
GESCO Group
GESCO AGA long-term investor and safe haven for succession solutions We acquire and develop industrial SMEs on a long-term basis, no exit intention Majority acquisitions, generally 100 %, mostly as succession arrangements New management is offered the opportunity to acquire a stake in the new company
of up to 20 % (“entrepreneur company”)
B U S I N E S S M O D E L
Hidden Champions from the technology-driven German „Mittelstand” in one share
GESCO –THE INDUSTRIAL GROUP
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P R O D U C T I O N P R O C E S SDynamically growing markets, high degree of innovation, automation Robotics and automation solutions in machine and plant construction, technology-intense manufacturing services
R E S O U R C EConsolidating markets, focus on niches and customer serviceCustomised preparation of primary materials, e. g. materials supply, transport and loading technology
H E A L T H & I N F R A S T R U C T U R EStable markets, relatively resilient to economic cycleComponents, modules and products for providers for mass markets close to end customers
M O B I L I T YCurrently strategic shifts with big opportunities as well as risks, market development unclear and challenging Tools and moulds, components, parts etc. for vehicleindustry
T H E G E S C O -S E G M E N T S
B U S I N E S S M O D E L
Technologies
End-market oriented segments
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S T R A T E G YN E X T L E V E L
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O U R V I S I O N F O R T H E G E S C O G R O U P
S T R A T E G Y N E X T L E V E L
All companies are Hidden Champions or well on track to becoming Hidden Champions
Well-balanced, robust and resilient portfolio with three core holdings and numerous basic holdings
Well-established Excellence Programs Strong corporate culture, attracting talents and
offering them room for development, resulting in High Performance Teams
Added Value on all levels, resulting in above-average growth, margins, cash flows
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Well-established niche providers
O U R U N D E R S T A N D I N G O F H I D D E N C H A M P I O N S
B U S I N E S S M O D E L
>Leading in their markets
Market-oriented, close to customers, anticipating their needs
Innovative, with unique products and high barriers to entry
Highly efficient production, reliable, delivering the defined quality
>>>>
Generating sustainableeconomic success
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O U RA P P R O A C H
S T R A T E G Y N E X T L E V E L
Hidden Champions to their next level
potential Hidden Champions into real Hidden Champions
the current portfolio into a more balanced, more resilient, more profitable one
GESCO AG into a shareholder that adds more value and establishes a value-add mindset within GESCO Group
Make GESCO the best owner for ambitious SMEs
Laying the foundations for future success
D E V E L O P …
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H O L D I N G Review the portfolio
Rethink M&A priorities and processes
Intensify the role of the holding: makeGESCO AG an enabler for its companies
Add skills in terms of methods and know-how
Distribute them throughout all companies
Enhance corporate culture and team spirit
Encourage visions to achieve NEXT LEVELS
O U RR O A D M A P
M & A Buy bigger companies Put stronger focus on add-ons Optimise processes Intensify direct approach
S T R A T E G Y N E X T L E V E L
E X I S T I N G G R O U P Conduct SWOT analysis Implement Excellence Programs Start with flagship projects
Turning our vision into reality…
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S T R A T E G Y D E T A I L E DC O N C E P T
I M P L E M E N T A T I O N
O U RT I M E L I N E
BuildStrategy
2018
Identify andimplement
flagshipprojects
2019 2020
Develop Holding
2021…
RethinkM & A
Implement Excellence Program OPEX
Potential further Programs
Create detailed concept
S T R A T E G Y N E X T L E V E L
P H A S E 1 2 3
…step by step
Implement Excellence Program MAPEX
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F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9
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P L E A S EN O T E
D E CN O VO C TS E PA U GJ U LJ U NM A YA P R M A RF E BJ A N
FY companies = calendar year
FY GESCO AG / GESCO Group
D E CN O VO C TS E PA U GJ U LJ U NM A YA P RM A RF E BJ A N
F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9
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I N I T I A LE X P E C T A T I O N S /S T A R T I N G P O S I T I O N
GDP growth forecast
+1.7 % to +2.4 %
VDMAproduction growth forecast
+ 3 %from April: +5 %
Politics
bear considerable Risks
Delivery times
noticebly longer,high utilisation
in the supply chain
F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9
( a t P r e s s C o n f . 2 8 . 0 6 . 2 0 1 8 )
Dynamic development of last year continues
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Ongoing lively demand
order intake grows strongly
Newly acquiredSommer & Strassburger
rapidly integrated into Group reporting and processes
For full financial year
Outlook confirmed
D E V E L O P M E N T N I N E M O N T H S P E R I O D
F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9
9 M O P E R A T I O N A L 0 1 . – 0 9 . 2 0 1 8
Strong nine months period, ongoing demand
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Growth in sales
clearlyhigher increase
in earnings
Sommer & Strassburger
in Q3 included in P&L pro rata with one month
Economic environmentdeteriorates
VDMA cuts downOutlook for 2018 from 5 % to 2 %
D E V E L O P M E N T N I N E M O N T H S P E R I O D
GESCO Group
AdvancesInternationalisation
Setter Group
Subsidiary in Mexiko
FRANK Group
Subsidiary in Russia
Dörrenberg Group
Subsidiary in USA
G E S C H Ä F T S J A H R 2 0 1 8 / 2 0 1 9
Regardless from short-term fluctuations in economic development,we are broadening the basis for future growth
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9 M O P E R A T I O N A L 0 1 . – 0 9 . 2 0 1 8
F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9
D E V E L O P M E N TN I N E M O N T H S P E R I O D
F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9
Organic* +14.3%
On organic basis almost unchanged
* Organic prev. year without Protomaster (sold Dec. 2017), reporting year without Sommer & Strassburger and stafffrom Frank subsidiaries in Ukraine and Russia
Organic* +7.4%
2017 / 2018 2018 / 2019 CHANGE
ORDER INTAKE / € mn 407.9 456.6 +11.9%
GROUP SALES / € mn 404.4 424.6 +5.0%
EBITDA / € mn 49.4 53.1 +7.3%
EBIT / € mn 31.5 35.8 +13.7%
GROUP NET INCOME AFTER MINORITY INTEREST / € mn 16.4 19.7 +20.4%
EARNINGS PER SHARE ACC. TO IFRS / € 1.51 1.82 +20.4%
EMPLOYEES / No. 2,482 2,669 +7.5%
INVESTMENTS / € mn 15.9 19.2 +20.2%
9 M O P E R A T I O N A L 0 1 . – 0 9 . 2 0 1 8
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D E V E L O P M E N TN I N E M O N T H S P E R I O D
F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9
2017 / 2018 2018 / 2019 CHANGE
ProductionProcessTechnology
Ord. Int.SalesEBIT
56.048.42.0
71.552.62.9
+27.6%+8.7%
+46.9%
ResourceTechnology
Ord. Int.SalesEBIT
202.2205.427.8
224.7217.528.7
+11.1%+5.9%+3.3%
Healthcare &Infrastructure Technology
Ord. Int.SalesEBIT
96.496.69.5
116.7109.011.3
+21.1%+12.8%+18.9%
Mobility Technology
Ord. Int.SalesEBIT
53.354.5-0.4
43.646.03.2
-18.2%-15.5%
---
Strong new business, intake growsstrongly; somes orders will be realised in 2019/2020
In general strong demand; order intake inludes large order which will be realised in 2019/2020; temporary underutilisation of capacities in one field of business
Companies generate brisk demand on a broad scale, all companies increased order intake and sales
In previous year disposal of low-margin sales, earnings clearly improved
9 M O P E R A T I O N A L 0 1 . – 0 9 . 2 0 1 8
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80000
90000
100000
110000
120000
130000
140000
150000
160000
170000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2016/2017 2017/2018 2018/2019
D E V E L O P M E N T I N F O U R T H Q U A R T E R
F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9
O R D E R I N TA K E S A L E S
PRELIMINARY FIGURES [€‘000]
Q 4 O P E R A T I O N A L 1 0 . – 1 2 . 2 0 1 8
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Salesapprox. € 145 million
order intakeapprox. € 135 million
Order intake Q4 below prev. year, which contained major order of
approx. € 10 mn from our point of
view no signal forsustained economic
slowdown
G R O U PO U T L O O K
F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9
2017 / 2018Actual
2018 / 2019Outlook 06/2018
2018 / 2019Outlook 11/2018
2018 / 2019Outlook 02/2019
Group sales(€ million)
547.2 550 to 560
Organically expected at upper end of range; in addition, approx. € 6.5 million sales from Sommer & Strassburgeron a pro rata basis
Confirmed/specified: approx. € 570 million including Sommer & Strassburger
Group net incomeafter minority interest(€ million)
16.1 26 to 27
Organically expected at or slightly below € 26 million; in addi-tion, € 0.5 million earnings burden due to first time consolidation of Sommer & Strassburger
Confirmed
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S E G M E N TO U T L O O K
F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9
Comments/ Expectations2018/2019
ProductionProcessTechnology
Sales
EBIT
Strong incoming orders; companies benefit from trend to automation; for full FY 2018/2019 sales and earnings growth expected on organicbasis plus growth due to Sommer & Strassburger
Resourcetechnology
Sales
EBIT
Business activities continue at a high level; temporary underutilisationof capacities in one field of business; higher sales expected yoy, while earnings expected at previous year‘s level (adjusted of cartel fine)
Healthcare &Infrastructure Technology
Sales
EBITStrong incoming orders; ongoing positive development throughout the companies; sales and earnings expected above previous year
Mobility Technology
Sales
EBITDecline in sales yoy due to sale of Protomaster and closing of business division; earnings much better expected yoy
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G E S C O S H A R E
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G E S C O O N T H ES T O C K M A R K E T
G E S C O S D A X
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65
70
75
80
85
90
95
100
105
110
115
120
G E S C O S H A R EI N C L . D I V I D E N D S V S . S D A X , 1 Y E A R [ % ]
M & A
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G E N E R A LS I T U A T I O N
GESCO: always in search forHidden Champions
with sales from € 20 mn to € ~100 mn
Seller‘s Market
strong demand in the face of limited supply
Directapproach
to be intensified
GESCO
good deal flowcontinues
M & A
GESCO’s strategy offers added value for entrepreneurs
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R E C E N TA C Q U I S I T I O N( A U G . / S E P T . 2 0 1 8 )
Sommer & StrassburgerGmbH & Co. KG
Designs and produces processing equipment for the pharmaceutical, food, water technology and chemical industries
Leading-edge provider in the relevant industries with own product lines
High end quality, extensive materials expertise and in-house system development
Process engineering know-how to understand its customers’ processes
Sales € 20 million, 140 employees
Vendor will remain active at the company as managing director
M & A
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A P P E N D I X
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S H A R E H O L D E R S T R U C T U R E A P P E N D I X
13.7 %Stefan Heimöller
private investor, entrepreneur,
supervisory boardmember since 2013
14.4 % Investmentaktiengesellschaft für langfristige Investoren TGV institutional investor, representedin supervisory board since 2017
~34.45 %* other institutional investors
~34.45 %*other private investors
* estimate
86.3% FREEFLOAT
ACC. TO DEFINITION OFDEUTSCHE BÖRSE
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3.0 % LGT Capital Partners Ltd.
G E S C O G R O U P O V E R V I E W A P P E N D I X
CompanySales 2017
€‘000Staff
as at 31.12.2017GESCO AGShareholding
ProductionProcess Technology
MAE Group 44,608 217 100%
Sommer & Strassburger GmbH & Co. KG 18,000 125 100%
VWH GmbH 12,641 123 80%
Georg Kesel Group 12,369 61 90%
C.F.K. CNC-Fertigungstechnik Kriftel GmbH 8,017 67 80%
ResourceTechnology
Dörrenberg Group 199,120 533 90%
SVT GmbH 42,975 186 90%
Pickhardt & Gerlach Group 32,989 42 100%
Health & Infrastructure Technology
Frank Group 31,517 298 90%
Setter Group 30,614 114 100%
AstroPlast Kunststofftechnik GmbH & Co. KG 14,381 82 100%
Franz Funke Zerspanungstechnik GmbH & Co. KG 17,951 86 80%
Haseke GmbH & Co. KG 15,107 75 80%
Hubl GmbH 14,092 105 80%
MobilityTechnology
Werkzeugbau Laichingen Group 21,248 173 100%
Dömer GmbH & Co. KG Stanz- und Umformtechnologie 17,849 100 100%
Modell Technik Formenbau GmbH 11,460 116 100%
Paul Beier GmbH Werkzeug- und Maschinenbau & Co. KG 10,409 93 100%
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FA C T S & F I G U R E S A P P E N D I X
1989
€ 10,839,499
10,839,499 registered shares
86.3 %
Xetra; Frankfurt (regulated market); Berlin, Düsseldorf, Hamburg/Hanover, Munich, Stuttgart (open market)
A1K020
DE000A1K0201
24.03.1998
31 March
Pareto Securities ASOddo BHF Bank AG
Founded
Share capital:
Shares:
Free float
Stock markets
Sec. identification number:
ISIN:
IPO:
End of financial year:
Designated sponsors:
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F I N A N C I A L C A L E N D A R &I R C O N T A C T
A P P E N D I X
Oddo BHF German Conference, Frankfurt/Main
Annual Accounts Press Conference / Analysts‘ Meeting
Q1 figures
Annual General Meeting, Wuppertal
Q2 figures
Q3 figures
GESCO AGInvestor RelationsOliver VollbrechtJohannisberg 742103 WuppertalGermany
19-20 Feb. 2019
27 June 2019
14 Aug. 2019
29 Aug. 2019
14 Nov. 2019
14 Feb. 2020
Tel +49 202 24820-18Fax +49 202 24820-49
info@gesco.dewww.gesco.de
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