EQS-News: INDUS publishes preliminary figures for FY 2023

INDUS publishes unaudited preliminary figures for FY 2023

• EBIT slightly above expectations
• Free cash flow clearly above target

Bergisch Gladbach, 21 February 2024 – In the financial year 2023, the portfolio companies of stock exchange listed INDUS Holding AG showed a good operating performance in what was a difficult macroeconomic environment, with the Group’s sales remaining stable at EUR 1.80 billion (previous year: EUR 1.80 billion), according to preliminary and unaudited figures. Operating income (EBIT) rose to EUR 149.6 million (previous year: EUR 133.7 million), with the corresponding EBIT margin climbing to 8.3% (previous year: 7.4%). EBIT include impairment losses of EUR 19.3 million (previous year: EUR 42.8 million) and amortization from the purchase price allocation for acquisitions (PPA amortization) in the amount of EUR 19.2 million (previous year: EUR 17.8 million).

In the context of the “PARKOUR perform” strategy program, INDUS completed the reorganization into three industrial technology segments (Engineering, Infrastructure, Materials) and sold two portfolio companies (SCHÄFER and SELZER) in mid-2023. Income from discontinued operations amounted to EUR -27.8 million (previous year: EUR -123.9 million). The Group’s earnings after taxes increased to EUR 56.1 million.

Towards the end of 2023, the INDUS portfolio companies were able to again reduce working capital quite noticeably. Free cash flow will exceed EUR 190 million (previous year: EUR 101.5 million), and thus significantly exceed the target of EUR 100 million.

“The financial year 2023 has confirmed the resilience of our realigned, future oriented portfolio even in a phase of economic weakness,” said Dr. Johannes Schmidt, Chairman of INDUS Group’s Board of Management. “Our companies generate strong free cash flow, which gives us the leeway to develop our portfolio in a focused manner.”

Increased income in Engineering and Materials segments The companies in the Engineering segment were able to grow their sales slightly and their earnings noticeably compared to the previous year. In the Materials segment, EBIT also increased strongly on slightly lower sales. Due to the strong downturn in the construction sector, the portfolio companies in the Infrastructure segment were faced with considerable operational challenges. Sales nevertheless remained almost at the previous year’s level, with EBIT declining only slightly. EBIT also reflect the much lower impairment losses in all segments compared to the previous year.

INDUS invested around EUR 61.9 million in the existing portfolio in 2023 (previous year: EUR 54.5 million). In addition, the Infrastructure segment was strengthened by the supplementary acquisition of QUICK Bauprodukte. “We are confident that we will be able to add promising acquisitions to the portfolio in 2024. The acquisition pipeline is well filled,” said Dr. Johannes Schmidt.

Net debt decreased significantly to EUR 506.2 million as of 31 December 2023 (previous year: EUR 593.5 million), not least due to the strong reduction of working capital in the full year 2023. The debt repayment period – the ratio of net debt to EBITDA – stood at 2.0 at the end of the year (previous year: 2.3), which was clearly within the target range of 2 to 2.5. The equity ratio amounted to 37.3% (previous year: 36.8%). Cash and cash equivalents at the end of the year were relatively high at approximately EUR 266 million (previous year: EUR 127.8 million). This is attributable to a major acquisition that was not realized at the end of 2023 as well as strong returns from the reduction in working capital in the fourth quarter. “With liquidity at a normalized level and correspondingly lower total assets, the equity ratio is 40%,” said Johannes Schmidt.

INDUS expects the stable development to continue in FY 2024. “After last year’s recession, the macroeconomic conditions for our portfolio companies will be challenging again in 2024,” said Schmidt. “Nevertheless, we expect sales of between EUR 1.85 billion and EUR 1.95 billion and EBIT of between EUR 145 million and EUR 165 million for the financial year 2024.”

The full financial statements for the financial year 2023 including the forecast for the financial year 2024 are expected to be published on the company’s website on 20 March 2024.  About INDUS Holding AG: Established in 1989 and headquartered in Bergisch Gladbach, INDUS Holding AG is a leading specialist for sustainable corporate development in the German-speaking SME sector. INDUS acquires two to three technology-oriented and promising industrial engineering companies for the Engineering, Infrastructure, and Materials segments annually. As a value-driven investment company with a clear focus on defined growth topics, INDUS provides its 43 operationally independent portfolio companies with active, long-term support in their corporate development, especially in the fields of innovation, market excellence, operational excellence, and sustainability. Since 1995, INDUS Holding AG has been listed in the Prime Standard of the Frankfurt Stock Exchange (DE0006200108); in 2023, the Group generated sales of around 1.8 billion euros. For more information on INDUS, visit www.indus.de. Contact: Nina Wolf & Dafne Sanac Public Relations & 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 00-32 E-mail presse@indus.de E-mail investor.relations@indus.de www.indus.de/en/