INDUS Holding AG: Again a good year for INDUS

Again a good year for INDUS

- Sales revenues climb to EUR 1.64 billion
- Organic revenue growth of over 10%
- Successful start to 2018

Bergisch Gladbach, 27 March 2018 - INDUS looks back on another good fiscal year. 2017 was the fifth consecutive year which saw the Group increase both sales revenues and earnings. Sales revenues climbed 13.6% to EUR 1.64 billion (previous year: EUR 1.44 billion), of which 10.5% was organic growth. EBIT rose by 5.5% to EUR 152.9 million (previous year: EUR 144.9 million). The Group had planned revenues of EUR 1.5 billion and EBIT of between EUR 145 million and EUR 150 million. The EBIT margin stood at 9.3%. Adjusted for the effects of initial consolidation, the operating result amounted to EUR 163.7 million, while the adjusted EBIT margin reached 10.0%. An even better result for 2017 was prevented only by two major repositionings in the Automotive Technology and Metals Technology segments as well as by much higher exchange losses than in the previous year.

Earnings before taxes (EBT) increased to EUR 129.2 million (previous year: EUR 123.4 million). Earnings after taxes rose to EUR 83.1 million (previous year: EUR 80.4 million). Earnings per share stood at EUR 3.37 (previous year: EUR 3.27). The Management Board and the Supervisory Board will propose a dividend increase by EUR 0.15 to EUR 1.50 to the Annual Shareholders' Meeting on 24 May 2018.

Strong growth in the segments
The INDUS Group currently comprises 45 companies which operate in five segments. The highly profitable Construction/Infrastructure and Engineering segments made higher-than-expected contributions to revenue and earnings growth and exceeded the target ranges. The Medical Engineering/Life Science segment continues to operate at a high level. Revenues in the Automotive Technology and Metals Technology segments came in according to plan, while earnings were below the projected target ranges due to the pressure on margins in the automotive industry and the two repositionings. Once these repositionings are essentially completed, INDUS expects earnings in both segments to improve.

Two complementary acquisitions in the new year
In 2017, the INDUS Group was able to strengthen its first tier as planned by acquiring M+P INTERNATIONAL, Hanover, and PEISELER, Remscheid, which operate in the automation, measurement and control technology sector, which INDUS has identified as a segment of the future. The new year saw two new acquisitions being added to the portfolio; INDUS subsidiary AURORA acquired electronics specialist EE ELECTRONIC EQUIPMENT at the beginning of the year, while OFA Bamberg, an INDUS portfolio company, took over the activities of a southern German trading firm for medical aids (annual revenues of approx. EUR 4 million) with effect from 1 April 2018.

With regard to its future growth, INDUS sees opportunities primarily in such industries of the future as infrastructure/logistic technology, energy and environmental engineering, medical engineering and life science as well as construction and security technology. Jürgen Abromeit: "We pursue a strict policy of not paying excessive prices. We talk to entrepreneurs who are primarily interested in taking their companies forward. The INDUS Group offers the ideal environment for this."

High stability thanks to good net assets and financial position
Total assets of the INDUS Group amounted to EUR 1.65 billion as of the reporting date, up 8.6% on the previous year. Net debt rose to EUR 398.9 million (previous year: EUR 376.6 million). Equity increased by 4.5% to EUR 673.8 million (previous year: EUR 644.6 million). As planned, the equity ratio amounted to a comfortable 40.8% (previous year: 42.4%). Net-debt-to-EBITDA remained unchanged from the previous year at 1.9 years. Gearing (net-debt-to-equity) stood at 59%. (previous year: 58%).

Cash flow from operating activities climbed to EUR 124.0 million in 2017 (previous year: EUR 114.5 million). Cash and cash equivalents stood at an impressive EUR 135.9 million (previous year: EUR 127.2 million). At EUR 111.4 million, capital expenditure was up by 7.2% on the previous year. The INDUS Group spent EUR 32.4 million on company acquisitions. An amount of EUR 71.3 million was invested in property, plant and equipment, while EUR 7.7 million was spent on intangible assets. In addition to the EUR 50 million earmarked for acquisitions, INDUS plans to invest about EUR 88 million in 2018. Besides international expansion activities, the portfolio companies will focus on efficiency-enhancing projects.

New records targeted for 2018
The good economic environment offers the INDUS portfolio companies the opportunity to further expand their market positions through innovation and technological strength. While INDUS Chairman of the Board Ju?rgen Abromeit is therefore optimistic about the Group's growth prospects, he also sees political risks. "Protectionism, sabre-rattling and populist governments lead to insecurity and instability. This also influences the general economic climate."

INDUS will continue its successful Compass 2020 strategy in the coming years. "Our development bank scheme creates the ideal basis for innovation from within our companies. And our portfolio companies are taking advantage of these good times to implement an efficiency programme that will make the individual entities fit for the future."
Following a very good start to the year, INDUS projects consolidated sales revenues of between EUR 1.65 billion and EUR 1.70 billion. Earnings before interest and taxes (EBIT) are expected to come in at between EUR 154 million and EUR 160 million. These target figures do not include the planned new acquisitions at the first and second tier.

Click here to download the full Annual Report of INDUS Holding AG.

Contact:
Nina Wolf & Julia Pschribülla
Corporate Communications & Investor Relations

INDUS Holding AG
Kölner Straße 32
51429 Bergisch Gladbach
Germany

Tel +49 (0) 022 04 / 40 00-73
Tel +49 (0) 022 04 / 40 00-66
E-mail presse@indus.de
E-mail investor.relations@indus.de
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