3. GESCO
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Acquisition of medium-sized industrial
companies with a long-term perspective
Acquisitions are made by the majority,
as a rule 100 %
Add-on acquisitions as strategic
additions to subsidiaries
THE BUSINESS MODEL
... the best SMEs in one share
GESCO AG
Long-term investor
secures future
viability
GESCO Holding
Methods & Know-how
increase added value
Methodological competence via experts
with many years of operational experience
Excellence programmes pool Group
Know-how and ensure progress
Added value is created through intensive
advice to the subsidiaries
10 operating subsidiaries and
14 international second-tier subsidiaries
Dynamic and operationally independent
units that benefit from the best practice of
a strong group
Innovative technology "Made in Germany"
for the world's markets
GESCO Group
Medium-sized market
and technology leader
4. GESCO
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GESCO – THE INDUSTRIAL GROUP
Resources -
Technology
Process -
Technology
Health -
& Infrastructure -
Technology
Material-intensive industries
with a focus on niches and
customer service.
The companies supply
customised input materials
and solutions.
Markets close to the end
consumer in the medical, hygiene,
sanitary and food sectors. The
markets are relatively robust to
economic fluctuations. The
companies supply assemblies,
components or preliminary products.
Demanding markets with
technologically interesting solutions
and a high degree of innovation.
The companies supply plants with
specific process know-how.
4 Companies
18% share of Group sales
524 employees
4 Companies
25% share of Group sales
509 employees
3 Companies
57% share of Group sales
728 employees
6. GESCO
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GESCO - KEY FACTS
... we are running smoothly!
► GESCO's most successful financial year
► 5 companies with record values
► Transformation with recognisable successes
► Excellence programmes show clear impact
► Sale VWH reduces automotive share to target
level
► Acquisition UMT creates new basic holding in
health & infrastructure technology
► Foundation of INEX-solutions as a strong basis
for solutions in stainless steel
► Highest dividend proposed at € 0.98
8. GESCO
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GESCO - THE VISION
...attractive ambitions
▌ All companies are hidden champions
or on the way there
▌ Balanced, robust and resiliant
portfolio with anchor investments and
basic participations with substantial size
▌ Strong corporate culture that attracts employees,
offers them development potential and leads to
high-performance teams
▌ Firmly established excellence programmes
10. GESCO
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THE STRATEGY
... € 1 billion SALES at 10% EBIT
I 3 anchor & 12 basic participations
I Business model know-how
I Methodological competence
I SE - Conversion
I ESG - Sustainability
HIDDEN - CHAMPIONS
EXCELLENCE PROGRAMS
CANVAS I
MAPEX I
OPEX I
LEADEX I
DIGITEX I
PORTFOLIO - ARCHITECTURE
M & A
I Grow inorganically
I Buy & build programme
I Portfolio roadmap
I Direct approaches &
expand network
11. GESCO
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M & A - GROWING INORGANICALLY
GESCO
always on the lookout
for future
Hidden Champions
Direct approach
Selected targets
through own market
analyses
Network
continues to generate
good deal flow
Add-ons
strategic added value
for our companies
> € 5 million turnover
Search profile
Sales
20m € to 100m €
for direct
investments
14. GESCO
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EXCELLENCE PROGRAMMES
... systematic and adapted approach
Market & Product Excellence MAPEX
Analysis of customer needs, product
offerings, customer channels and
relationships; new ideas for product portfolio
and market positioning
Expand market share,
address new market segments
and develop product innovations
Leadership Excellence LEADEX
Sharpening leadership skills and
strengthening attractiveness as an employer
in a dynamic environment
Develop leaders, strengthen
corporate culture and create
high-performance teams
OPEX Operational Excellence
Analysis of the company and value creation
processes, especially in quality, lead time and
delivery performance as well as cost structures
Increase efficiency and thus margins
CANVAS Business Model Analysis
Workshops for holistic analysis of the
business models – derivation of next steps –
processing of results in annual business
planning
Consolidate common understanding in the
management team, identify development
potential and fix measures
21
x
7x
6x
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LEADEX
High-performance teams
► Leadership Excellence means continuous
development of leadership skills
► Requirements for good and successful leadership
change with age structures
► LEADEX offers first and second level managers a
broad and modern basis consisting of 3 modules:
Tools, Teams and High Performance Teams
► The Teams module provides Know-how on different
personality types and promotes goal-oriented
interaction in organisations.
► the Tools module offers the basics of modern
leadership and efficient application
► with high-performance teams, we offer a module for
building particularly high-performing teams
16. GESCO
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EXCELLENCE PROGRAMS
... systematic and adapted approach
DIGITEX Digital Excellence
Digitisation of workflows throughout the entire
value chain - from customer enquiry through the
manufacturing process to the life-time end of
our product with state-of-the-art IT systems.
This includes the digital market presence, the
digital business model, as well as digital
...over the cycle
EBIT target margin 8-10 % p.a.
Operational Excellence 9 - 12 months lead time before effectiveness 3 % p. a.
Sales per employee
grows by
12 - 24 months lead time before effectiveness
Market & Product Excellence 3 % p. a.
Sales outgrows
market by
EX
digit
Customer interfaces and paperless order
processes in our companies.
We assess the initial situation, define the IT
target concept for each company and select
ideally suited solutions and possibly partners
for implementation.
Goals
18. GESCO
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CANVAS 2019
OPEX 2019
S & S Stainless
Steel Technology
Biogas for households
+166%
Result since 2018
+48%
Sales since 2018
+30%
Efficiency since 2018
5
Continents
+85%
Sales pressure
pipes since 2018
36
Countries
CANVAS - BIOGAS UPGRADED THROUGH
FILTRATION PLANTS – REDUCES
DEPENDENCE ON GAS IMPORTS
DEVELOPMENT PARTNER FOR HIGH-END
PLANTS - PHARMACEUTICALS, CHEMICALS
AND WATER
WORLD MARKET LEADER FOR HIGH-
PRESSURE PIPES FOR THE FILTRATION OF
LIQUIDS AND GASES
STAINLESS STEEL COMPETENCE COMBINED
INEX - SOLUTIONS GMBH
19. GESCO
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HUBL
Stainless Steel
Technology
Wafers for the world
CANVAS 2019
OPEX 2019
CANVAS - FOKUS WORLDWIDE GROWTH OF
WAFER PRODUCTION PLANTS
CANVAS - WORLD MARKET LEADER FOR
BIOTECH CONTAINERS
POSITIONING AS A STRATEGIC PARTNER FOR
PLANT DEVELOPMENTS
OPEX - WORKSHOP PRODUCTION
TRANSFERRED TO SERIES PRODUCTION
STAINLESS STEEL COMPETENCE COMBINED
INEX - SOLUTIONS GMBH
+100%
Result since 2018
+50%
Sales since 2018
+25%
Efficiency since 2018
+60%
Facilities since 2018
200
plants/ p. a.
+68%
Container
20. GESCO
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Pickhardt &
Gerlach
we drive the change
CANVAS 2019
MAPEX 2020
OPEX 2021
MAPEX - COFIN® BRAKE LINE TAPE FOR
E-MOBILITY ESTABLISHED AS
SERIES PRODUCTION
MAPEX - EMONI ® WITH 99.9% EFFICIENCY
FOR BATTERY TECHNOLOGY IN THE MARKET
SUCCESSFUL
OPEX - PROJECT STARTED IN 11/21,
POTENTIAL ALREADY IDENTIFIED
ELECTROMOBILITY MOVES US FORWARD
1500 t
Brake lines COFIN®
72%
Global EMS
-80 kg
CO2 /t (EMONI® )
+45%
Result since 2018
+36%
Sales since 2018
+24%
Efficiency since 2018
21. GESCO
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SVT
Loading Your Values
Focus on hydrogen
CANVAS 2021
OPEX 2021
CANVAS - SUPPORTING THE ENERGY
TRANSITION - SOLUTIONS FOR HYDROGEN,
LNG, CNG
PORTFOLIO EXPANSION FOR NEW MEDIA
AND TECHNOLOGIES
ASIA HUB ESTABLISHED IN SINGAPORE
OPEX - ANALYSES COMPLETED –
MEASURES BEING IMPLEMENTED
WORLD MARKET LEADER FOR
LNG LOADING ARMS
70
Countries
2.300
Ship loading arms
supplied
+473%
LNG sales since
2018
+29%
Result since 2018
+40%
Sales since 2018
+25%
Efficiency since 2018
22. GESCO
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CANVAS 2021
OPEX 2022
RESPONSIBILITY FOR THE FUTURE: PAPER
REPLACES PLASTIC - NEW ALTERNATIVES
FROM WASTE AND SUGAR CANE PAPER
INNOVATIONS CREATE NEW PRODUCTS:
COTTON WOOL, LOLLIPOPS, STIRRERS
EXPERTISE AROUND THE GLOBE
CANVAS - FURTHER INTERNATIONALISATION
WITH PROXIMITY TO THE CUSTOMER
OPEX - ANALYSES COMPLETED AND
IMPLEMENTATION STARTED
25.000 t
plastic avoided by
SETTER
0%
Chemical additives
+70%
Sales since 2018
80%
Global sales
+50%
Result since 2018
160 bn pcs
cotton buds world /p.a.
Setter Group
Sustainability for
the world market!
23. GESCO
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UMT Group
Forces united!
CANVAS - HIDDEN CHAMPIONS FROM
INDUSTRY AND MEDICINE UNITED AS A
STRONG GROUP
FIRST DUTY THEN SUCCESS - ADDED VALUE
ONLY ARISES AFTER THE PURCHASE
POST-MERGER INTEGRATION
STRATEGY HYPOTHESES UNDERPINNED -
NEW PRODUCTS CREATED AND NEW
CUSTOMERS ADDED
A MANAGEMENT TEAM FROM BOTH
COMPANIES BUNDLES KNOW-HOW
>100
employees
30
€ m sales
1+1=3
Synergy effects
1
Location
1
Management Team
1
Growth target
CANVAS 2022
26. GESCO
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OVERVIEW 2021
Optimisation of tax
structuring in Germany
Focus on efficiency and
working capital
First-time consolidation
UMT
Supply situation
Continued corona
protection measures
Strong demand in
various sectors
Liquidity in the market /
interest / "custody fee
Sharply rising material
and energy prices
Gross domestic product
2020: -4,9%
2021 expected: +3.0%
(Federal Government)
2021 final: +2.9%
VDMA
(Mechanical and plant engineering)
2020: -12,0%
2021 expected: +4.0%
2021 preliminary: +7.0%
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KEY FIGURES
FY 2021 FY 2020 Delta
in € m (continued) (continued) in %
Incoming orders 544.5 407.1 33.8%
Group sales 488.1 397.2 22.9%
EBITDA 62.2 33.4 86.4%
EBIT 44.6 16.7 167.0%
EBIT margin (in %) 9.1 4.2 117.3%
Group annual result1)
26.9 5.8 363.8%
Earnings per share (in €)1)
2.48 0.54 359.3%
Workforce (number as of 31.12.) 1,783 1,695 5.2%
1) After minority interests
→ Sales and incoming orders above previous year - and above calendar year 2019
→ Cost of materials and personnel ratios down on previous year
→ EBIT margin in the target corridor 8-10%
→ Tax optimisation through restructuring at Setter and P&L transfer agreement
→ Record consolidated net income after minority interests
Production
Process
Technology
Resource
technology
Health
& Infrastructure
Technology
29. GESCO
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DEVELOPMENT OF THE SEGMENTS
... on a good path
Rising trend in capital goods over the year
Consistently strong demand for stainless steel
equipment with high production efficiency
High demand + Supply issues + Price increase
for tool and strip steel
High order level for loading arms
Strong demand from biotech, semiconductor and
construction segments
Continued high level of paper sticks
Including UMT/Krömker for half a year
Investment focus on further expansion of the
Setter Group
Workforce +88 / +5.2%; thereof +45 at UMT
GJ 2021 GJ 2020
in Mio. € (fortgef.) (fortgef.)
Auftragseingang 83,9 49,7
Umsatz 65,3 54,2
EBIT 8,7 0,4
EBIT-Marge (in %) 13,3 0,7
Auftragseingang 292,2 233,3
Umsatz 277,7 226,4
EBIT 35,5 13,7
EBIT-Marge (in %) 12,8 6,0
Auftragseingang 168,4 124,0
Umsatz 145,1 116,7
EBIT 14,6 11,4
EBIT-Marge (in %) 10,1 9,8
Investitionen in Sachanlagen 12,7 7,9
Belegschaft 1.783 1.695
(incl. GESCO AG)
Produktions-
prozess-
Technologie
Ressourcen-
Technologie
Gesundheits-
& Infrastruktur-
Technologie
Alle
Geschäftsbereiche
30. GESCO
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FINANCIAL POSITION
...strong basis for acquisitions
Liquid funds - Cash flow
WOC ratio as at the reporting date (continuing operations)
m
€
Net debt
in Mio. € 31.12.2021 31.12.2020
Bankverbindlichkeiten -
langfristig
-32,3 -38,3
Bankverbindlichkeiten -
kurzfristig
-44,0 -44,3
Liquide Mittel 57,7 49,2
Nettoverschuldung -
Kreditinstitute
-18,6 -33,4
Leasingverbindlichkeiten -19,3 -15,3
Nettoverschulding inkl.
Leasing
-37,9 -48,7
EBITDA (fortgeführt) 62,2 33,4
Nettoverschuldung
(einschl. Leasing) /
EBITDA
0,6 1,5
36,1% 37,2%
32,9%
32,0%
42,0%
0
1.000
2019 fortg. 2020 fortg. 2021 fortg.
m
€
UMS WOC WOC RATIO
Operational CF
+51,7
CF Investments
-32,0
CF Financing
-11,4
32. GESCO
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ESG
... anchored in NEXT LEVEL 25
Stakeholder
Reporting
standards
Legal
Requirements
§
→ Data basis for 2021 and previous year collected
→ Comparability made difficult by Corona year
→ First-time preparation of the non-financial
Report according to DNK standard
→ printed in full in the annual report
→ EU taxonomy in progress
→ Analysis of all different business models
→ Projects in the product and production area on
Individual level of society
→ from "green electricity" and PV systems... to
product-specific CO2 savings
35. GESCO
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GESCO SHARE
...with potential
Free float
(according to the definition
of Deutsche Börse)
68.4%
Investmentaktiengesellschaft für
langfristige Investoren TGV
17.4%
Baden-Württembergische
Versorgungsanstalt für Ärzte,
Zahnärzte und Tierärzte
3.3%
LGT Capital Partners Ltd.
3.0%
Other instituional investors
31.7%
Retail investors
30.4%
Stefan Heimöller
14.2%
ISIN DE000A1K0201
WKN A1K020
Stock exchange symbol GSC1
Share capital (31.12.2021) 10.839.499 €
Number of shares
(31.12.2021)
10.839.499
IPO 24.03.1998
Transparency standard Prime Standard
Year-end rate (31.12.2021) 25,50 €
Market capitalisation
(31.12.2021)
276.4 m €
Free float (14.01.2022) 68,4%
Research/Coverage GSC Research (Buy: € 40.50)
Pareto Securities (Buy: € 34.00)
SMC Research (Buy: € 47.80)
Warburg Research (Buy: € 27.00)
Consensus: Buy: € 37.33
Indices CDAX Total Index
Prime All Shares
Prime Industrial
Prime Industrial Diversified
Classic All Share
36. GESCO
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DIVIDEND 2021
Dividend policy
Distribution within the range of 20% to 60% of the
Consolidated net income after minority interests
Financial year 2021
Record dividend
due to record result
0,83 €
0,73 €
0,58 €
0,67 €
0,35 €
0,60 €
0,90 €
0,23 €
0,98 €
3,3%
2,9%
2,3%
2,7%
1,4%
2,1%
3,9%
1,2%
3,8%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
4,0%
4,5%
2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019 2020 2021 2022
0,00 €
0,20 €
0,40 €
0,60 €
0,80 €
1,00 €
Dividend
Yield*
Dividend
* Dividend yield calculation: Dividend for the financial year/XETRA closing price at the end of the financial year
38. GESCO
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PRELIMINARY FIGURES Q1/22
...strong start in 22
Incoming orders
Sales
EBIT in %
168,8
138,1
9,7 %
136,4
112,6
6,6 %
Business year
2022*
Business year
2021
in € m
Group net profit
After minority interests
8,8 4,0
Order intake in all segments above previous
year's figures
Sales in all segments above the previous year's
values. Resources Technology positively
influenced by material price developments.
Positive EBIT development from market
development and performance from excellence
programmes contribute to this.
* includes UMT
Increased EBIT, income from investments, lower
tax rate result in consolidated net income of
€ 8.8 million
39. GESCO
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OUTLOOK 22
► IfO economic forecast +3.1% for the base scenario
(only temporary increase in commodity prices)
and +2.2% for the alternative scenario
(aggravated commodity price situation - easing only in 2HY 22)
► GDP +1.8% (German Council of Economic Experts)
► Production of machinery manufacturers +4 % (VDMA)
► Financial parameters provide good starting point for
inorganic growth
► Acquisitions planned in 22 if a good fit to the
portfolio strategy
► CANVAS, MAPEX and OPEX measures being
implemented in many companies Positive effects
expected
► LEADEX roll-out takes place in 22 and will have an
increased impact in 23 et seq.
► Outlook fraught with uncertainties
40. GESCO
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OUTLOOK 22 - SEGMENTS
... NEXT LEVEL 25 firmly in sight
Resources -
Technology
Process -
Technology
Health -
& Infrastructure -
Technology
Sales increase due to good
demand and material price effects
in the tool and strip steel segment
Order situation in loading
technology affected by Ukraine
crisis
Positive sales development at
almost all companies
Overall stable margin
Increase in sales due to high-margin growth in
stainless steel processing
Recovery in mechanical and plant engineering
Sales
EBIT
Sales
EBIT
Sales
EBIT
41. GESCO
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OUTLOOK 22 - GROUP
... NEXT LEVEL 25 firmly in sight
Sales
Consolidated net profit
after minority interests
565 - 585
28.0 – 30.5
488
26.9
Business year
2022 Outlook
Business year
2021
in € m
► Outlook before possible acquisitions
► Known effects from the Ukraine crisis have been
processed - further influences currently difficult to predict
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FINANCIAL CALENDAR 2022
In constant dialogue with the capital market
Date Reporting/Event Type/Place
21.04.2022 Annual press and analysts' conference Virtual
03.05.2022 SdK: Company presentation Virtual
13.05.2022 Quarterly Statement on Q1 2022 Publication
23.-25.05.2022 Spring Conference (Equity Forum) Frankfurt
12.08.2022 Half-Year Financial Report 2022 Publication
24.08.2022 Annual General Meeting Wuppertal
05.09.2022 Equity Forum: Autumn Conference Frankfurt
15.09.2022 Zurich Capital Market Conference (ZKK) Zurich
14.11.2022 Quarterly Statement on Q3 2022 Publication
15.-16.11.2022 Munich Capital Market Conference (MKK) Munich
28.-30.11.2022 German Equity Forum (Deutsche Börse) Frankfurt