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N E X T L E V E L
In Leadership
Annual press and
analysts' conference
Financial year 2021
Düsseldorf, 21 April 2022
GESCO
AG
–
Bilanzpresse-
und
Analystenkonferenz
am
21.
April
2022
2
SLOGAN
... in one share, that is GESCO
Technology-driven German SMEs
Hidden champions
GESCO
AG
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Bilanzpresse-
und
Analystenkonferenz
am
21.
April
2022
3
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
GESCO
AG
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Bilanzpresse-
und
Analystenkonferenz
am
21.
April
2022
4
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
Ralph Rumberg
CEO
GESCO AG
Illustration by Aleksandar Savić
GESCO
AG
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Bilanzpresse-
und
Analystenkonferenz
am
21.
April
2022
6
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
GESCO - THE VISION
01
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
am
21.
April
2022
9
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
NEXT LEVEL 25 – THE STRATEGY
02
GESCO
AG
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Analystenkonferenz
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21.
April
2022
11
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
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
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21.
April
2022
12
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
13
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
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21.
April
2022
PORTFOLIO ARCHITECTURE - ROADMAP I
... 9 transactions in 3 years
PRODUCTION PROCESS RESOURCES
HEALTH &
INFRASTRUCTURE
MOBILITY
PROCESS
INEX -
solutions
UMT
13
14
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
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21.
April
2022
PORTFOLIO ARCHITECTURE - ROADMAP II to `25
... on course - NEXT LEVEL 25
ACHOR Sales > € 100 m BASIC Sales Ø 40 - 50 m €
14
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
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21.
April
2022
15
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
GESCO
AG
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Analystenkonferenz
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April
2022
16
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
GESCO
AG
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Analystenkonferenz
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April
2022
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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
HIGHLIGHTS 21
03
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
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21.
April
2022
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
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
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21.
April
2022
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
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
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21.
April
2022
21
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
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
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21.
April
2022
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
GESCO
AG
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Analystenkonferenz
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21.
April
2022
23
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!
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
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21.
April
2022
24
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
Kerstin Müller-Kirchhofs
CFO
GESCO AG
Illustration by Aleksandar Savić
FINANCIAL YEAR 21
04
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
am
21.
April
2022
27
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%
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
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2022
28
PORTFOLIO DEVELOPMENT
12
Subsidiaries
11
Subsidiaries
02/2021
Management buy-out at VWH
GmbH and rounding off the
December deal
06/2021
Acquisition
UMT incl.
Krömker
12
Subsidiaries
11
Subsidiaries
H2/2021
Bringing
Haseke into
UMT
Production
Process
Technology
Resource
technology
Health
& Infrastructure
Technology
(Production)
Process
technology
10
Subsidiaries
2022
S&S + Hubl =
Inex solutions
INEX
solutions
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AG
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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
GESCO
AG
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Bilanzpresse-
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Analystenkonferenz
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April
2022
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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
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AG
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31
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
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125,2
91,8
68,6
68,2
255,7
(56,9%)
227,8
(58,3%)
31.12.2021 31.12.2020
Liabilities (in € million)
Equity
Long-term debt
Current liabilities
Liabilities to
assets held for
sale
8,0
57,7 49,2
77,4 64,9
124,8
108,9
189,6
159,8
31.12.2021 31.12.2020
Assets (in € million)
Non-current assets
Inventories
Receivables and
other assets
Cash and cash
equivalents
Assets held for sale
BALANCE SHEET
... solid balance sheet with high equity ratio
449,5
390,8
390,8
449,5
3,0
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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
GESCO - ON THE STOCK EXCHANGE
05
GESCO
AG
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2022
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SHARE PRICE DEVELOPMENT
28% better than the SDAX
Source: Bloomberg
-20
-10
0
10
20
30
40
50
GESCO SDAX
in %
4.2.2021
Verkauf
VWH
17.8.2021
Prognose
erhöht
27.4.2021
AR 2020
published 16.6.2021
Purchase
UMT
18.11.2021
Forecast
increased
again
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
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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
OUTLOOK 22
06
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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
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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
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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
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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
Many thanks
ANNEX
07
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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
GESCO
AG
–
Bilanzpresse-
und
Analystenkonferenz
am
21.
April
2022
46
SHAREHOLDER AND PRESS CONTACT
Peter Alex
Head of
Investor Relations & Communications
Phone +49 (0) 202 24820-18
Fax +49 (0) 202 24820-49
ir@gesco.de
presse@gesco.de
stimmrechte@gesco.de

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2022-04-21_BPK_eng.pdf

  • 1. N E X T L E V E L In Leadership Annual press and analysts' conference Financial year 2021 Düsseldorf, 21 April 2022
  • 2. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 2 SLOGAN ... in one share, that is GESCO Technology-driven German SMEs Hidden champions
  • 3. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 3 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 4 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 6 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
  • 7. GESCO - THE VISION 01
  • 8. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 9 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
  • 9. NEXT LEVEL 25 – THE STRATEGY 02
  • 10. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 11 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 12 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
  • 12. 13 GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 PORTFOLIO ARCHITECTURE - ROADMAP I ... 9 transactions in 3 years PRODUCTION PROCESS RESOURCES HEALTH & INFRASTRUCTURE MOBILITY PROCESS INEX - solutions UMT 13
  • 13. 14 GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 PORTFOLIO ARCHITECTURE - ROADMAP II to `25 ... on course - NEXT LEVEL 25 ACHOR Sales > € 100 m BASIC Sales Ø 40 - 50 m € 14
  • 14. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 15 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
  • 15. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 16 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 17 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 21 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 23 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 24 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 27 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%
  • 27. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 28 PORTFOLIO DEVELOPMENT 12 Subsidiaries 11 Subsidiaries 02/2021 Management buy-out at VWH GmbH and rounding off the December deal 06/2021 Acquisition UMT incl. Krömker 12 Subsidiaries 11 Subsidiaries H2/2021 Bringing Haseke into UMT Production Process Technology Resource technology Health & Infrastructure Technology (Production) Process technology 10 Subsidiaries 2022 S&S + Hubl = Inex solutions INEX solutions
  • 28. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 29 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 30 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 31 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
  • 31. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 32 125,2 91,8 68,6 68,2 255,7 (56,9%) 227,8 (58,3%) 31.12.2021 31.12.2020 Liabilities (in € million) Equity Long-term debt Current liabilities Liabilities to assets held for sale 8,0 57,7 49,2 77,4 64,9 124,8 108,9 189,6 159,8 31.12.2021 31.12.2020 Assets (in € million) Non-current assets Inventories Receivables and other assets Cash and cash equivalents Assets held for sale BALANCE SHEET ... solid balance sheet with high equity ratio 449,5 390,8 390,8 449,5 3,0
  • 32. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 33 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
  • 33. GESCO - ON THE STOCK EXCHANGE 05
  • 34. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 35 SHARE PRICE DEVELOPMENT 28% better than the SDAX Source: Bloomberg -20 -10 0 10 20 30 40 50 GESCO SDAX in % 4.2.2021 Verkauf VWH 17.8.2021 Prognose erhöht 27.4.2021 AR 2020 published 16.6.2021 Purchase UMT 18.11.2021 Forecast increased again
  • 35. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 36 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 37 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 39 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 40 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 41 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 AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 42 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
  • 44. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 45 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
  • 45. GESCO AG – Bilanzpresse- und Analystenkonferenz am 21. April 2022 46 SHAREHOLDER AND PRESS CONTACT Peter Alex Head of Investor Relations & Communications Phone +49 (0) 202 24820-18 Fax +49 (0) 202 24820-49 ir@gesco.de presse@gesco.de stimmrechte@gesco.de