Jenoptik : Investor Relations

The leading light in Photonics.

Investor Presentation

November 2020

Disclaimer

This presentation can contain forward-looking statements that are based on current expectations and certain assumptions of the management of the Jenoptik Group. A variety of known and unknown risks, uncertainties and other factors can cause the actual results, the financial situation, the development or the performance of the company to be materially different from the announced forward-looking statements. Such factors can be, among others, pandemic diseases, changes in currency exchange rates and interest rates, the introduction of competing products or the change of the business strategy. The company does not assume any obligation to update such forward-looking statements in this document in the light of future developments.

Jenoptik Investor Relations Presentation

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Agenda

01

Overview and strategy

02

Financials 9M/2020 and outlook

03

Appendix

Jenoptik Investor Relations Presentation

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Jenoptik - a leading player in attractive photonic sectors

Photonics is moving markets and changing the world around us. Jenoptik has the skills, experience and proven track record to lead the way.

Attractive markets	Attractive photonic applications
Photonics market: ~600bn euros, CAGR 5-6%

Leading market	Customer-oriented, international partner,
positions	leading market positions on a global scale

Strong financial	Strong financial position for accelerated
base	growth and margin expansion

	Clear targets	Transforming Jenoptik into a focused
	technology group
Jenoptik Investor Relations Presentation

1991

Foundation

~4,100

Employees

~1.4bn €

Market cap

>80

Countries worldwide

2019

Revenue 855.2m €

EBITDA 15.7%

4

Focused divisions and technology synergies

…………….………….….……………. Photonic ……….………….………….……. …..…...Mechatronic.…….

LIGHT & OPTICS		LIGHT & PRODUCTION		LIGHT & SAFETY
OEM-Business		B2B-Business		B2G-Business

• Development & production partner for OEM customers
• Optical components, modules and systems for the semi- conductor manufacturing, communication industries and biophotonics

Photonics at the heart of

our OEM customers

products

• Engineering business with focus on smart manufacturing and process automation solutions for industrial customers
• Using primarily Optical and Photonic technologies, esp. for the automotive industry:

Driving production

efficiency with photonics

• Providing imaging based solutions for Public Safety in combination with intelligent data management

Making roads and communities safer

• Mechatronic solutions for partners in the Aviation, Security and Defense Industries
• Carve-outfrom former Defense & Civil Systems division (Aviation, Power Systems, Energy & Drive)

Tailored solutions in

challenging and regulated

markets

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Transforming Jenoptik into a focused technology group

More Focus

More Innovation

More International

Leverage core	Step-up R+D work	Build a truly global
competencies		enterprise

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Acquisition of TRIOPTICS - decisive step in Jenoptik's strategic process of focusing on photonics

TRIOPTICS is a leading international supplier of test equipment and manufacturing systems for optical components and sensors in the digital world (2019: revenue ~80m euros, EBITDA margin ~27%)

Combination of complementary technology portfolios

Focus on high-growth industries of the future

Expansion of global presence

Acceleration of growth

Expansion of profitability and cash flow

Substantial synergies

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Agenda

01

Overview and strategy

02

Financials 9M/2020 and outlook

03

Appendix

Jenoptik Investor Relations Presentation

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First nine months 2020: successful acquisition of TRIOPTICS; business development in Q3 improved versus prior quarters

	Revenue
	− 505.0 million euros (prior year 581.4m euros*)
	EBITDA	− Adjusted 73.9 million euros (prior year 92.4m euros)
	Order intake
	− 510.9 million euros (prior year 558.7m euros*)
	Free cash flow	− Adjusted 18.5 million euros (prior year 7.9m euros)
	Business
	− Acquisition of 75% of shares in TRIOPTICS completed with
	development	closing on Sept. 24; acquisition of INTEROB in February
		− Corona pandemic had varying impact on Jenoptik's
		businesses
		− Measures for site optimization/restructuring and cost
		reduction implemented
		* adjusted = here without Hillos

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Significant growth in order intake in Q3 compared to Q2; book-to-bill higher than in prior year

Order intake in million euros

800
	−8.5%
600
558.7*	510.9
400
200
0
9M/2019	9M/2020

• Order intake in Q3 with 177.0 million euros at adjusted* prior-year level
• 9M/2020: order cancellation in June and postponements led to decline in order intake, especially in the Light & Production division
• 9M/2019: total order intake came to 574.9 million euros, incl. orders of Hillos of 16.2 million euros
• Book-to-billratio 1.01 (prior year 0.96*)

Order backlog in million euros

800
		+6.9%
600
400	464.7*	496.7
200
0
	Dec 31, 2019	Sept 30, 2020

• Approx. 45% to be converted to revenue in 2020 (prior year: approx. 46%)
• Order backlog of INTEROB and TRIOPTICS: 51.4 million euros
• Order backlog 2019 incl. Hillos: 466.1 million euros
• Frame contracts: 49.9 million euros (31/12/19: 49.9m euros)

*adjusted = here without Hillos

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Revenue improved in Q3 compared to prior quarters; in 9M decline due to pandemic and development in automotive sector

Revenue in million euros

					− 13.1%
600
			581.4*
500								505.0
400					− 15.3%
300
200				259.5
	207.9*
178.3*	195.1*					176.1
			164.4	164.6
100
0
Q1/19	Q2/19	Q3/19	9M/19	Q4/19	Q1/20	Q2/20	Q3/20	9M/20

* adjusted =

here without Hillos

• Good business with the semiconductor equipment industry and public-sector customers continued
• Significant reduction in Light & Production division (business with automotive industry) as well as in the aviation and biophotonics areas
• Revenue contribution of INTEROB 9.5 million euros and TRIOPTICS 0.9 million euros
• 9M/2019: total revenue of 595.7 million euros, incl. contribution of Hillos of 14.4 million euros

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Foreign revenue increased slightly to ~73 percent of total; Americas were hit hardest by the pandemic

	22.0					9M/2020
Middle	2.2%				9M/2019
East/Africa	21.5*
			57.8
Asia/Pacific			−15.9%
			68.8*
Americas			134.5			−21.0%
		170.3*
Europe			155.3	−2.8%
		159.7*
Germany			135.5	−15.9%
		161.0*
			*adjusted = here without Hillos

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Profitability improved in the course of the year

EBITDA in million euros			− 20.0%
100								− Adjusted EBITDA affected by lower
80				92.4*						revenue
60									73.9*	− Effects from structural and portfolio
									measures of −7.3 million euros
40			38.1*		42.6					− Adjusted EBITDA margin at 14.6%
								(prior year 15.9%);
20		30.5*				24.9*	31.7*
23.8						not adjusted: EBITDA 66.6 million euros
					17.3*
0									/ margin 13.2%
	Q1/19	Q2/19	Q3/19	9M/19	Q4/19	Q1/20	Q2/20	Q3/20	9M/20

EBIT in million euros

100					− 32.9%
80
60
40			59.1*
							39.6*
				30.8
20	19.7*	26.5*				20.0*
12.8			6.2*	13.5*
0
Q1/19	Q2/19	Q3/19	9M/19	Q4/19	Q1/20	Q2/20	Q3/20	9M/20

Jenoptik Investor Relations Presentation

• Adjusted EBIT margin of 7.8% (prior year 10.2%)
• PPA effects of −5.9 million euros (prior year −4,9m euros)
• Not adjusted: EBIT 32.7 million euros / margin 6.5%

*adjusted for effects arising from site optimization, restructuring, cost reduction programs as wells as costs related to M&A activities

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Lower revenue and effects arising from structural and portfolio measures effected earnings figures; EPS clearly positive

In million euros

Revenue

Gross margin

Functional costs

EBITDA / adjusted

EBIT / adjusted

Financial result

Earnings before tax

Earnings after tax

Earnings per share (euros)

*adjusted = here without Hillos

9M/2020

505.0

33.4%

136.1

66.6 / 73.9

32.7 / 39.6

−3.0

29.6

24.4

0.43

9M/2019

581.4*

35.2%

147.1

91.4 / 92.4

58.1 / 59.1

−1.6

56.5

44.3

0.77

• Gross margin impacted by higher fixed costs components
• Functional costs decreased by 7.5%
• • R+D: below prior year
    (R+D output slightly higher than in prior year)
  • Selling: marked decline
  • Administrative: slightly reduced
• Tax rate at 17.5% (prior year 21.5%), cash-effective tax rate of 17.9% (prior year 14.9%)

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Free cash flow improved; sound balance sheet and liquidity position despite COVID-19 and higher debt (acquisition Trioptics)

In million euros

Operating profit before adjusting working capital

Changes in working capital, provisions and other items

Cash flows from operating activities before income taxes

Cash flows from operative investing activities

Free cash flow (before interest and taxes)

adjusted

9M/2020

65.9

−24.7

41.3

−27.9

13.4

18.5

9M/2019

90.4

−51.8

38.6

−31.3

−7.3

• Increase in working capital to 271.1 million euros (in particular as a result of acquisitions (31/12/19: 217.8m euros / 30/9/19: 257.3m euros)
  Working capital ratio at 35.5% (31/12/19: 25.5% / 30/9/19: 30.7%)
• Cash flows from operating activities improved through measures for securing liquidity and working capital optimization
• Financial resources available at short notice of more than 83.1 million euros (31/12/19: almost 170m euros)
• Capital expenditure at 30.3 million euros (prior year: 31.6 million euros)
• Net debt grew to 242.3 million euros because of acquisitions (31/12/19: minus 9.1m euros)
• Equity ratio fell to 49.4%, this was attributable in particular to higher total assets as a result of the initial consolidation of TRIOPTICS (31/12/19: 60.5%)

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Light & Optics division: business with semiconductor equipment industry remains robust and ensures high margin level

• Business with semiconductor equipment industry remained robust, decline in the areas of biophotonics und industrial solutions; TRIOPTICS contributed 0.9 million euros to revenue; prior-year revenue adjusted for contribution of Hillos of 14.4 million euros
• Earnings reduction due to underutilization in some areas, but profitability improved
• On a comparable basis, order intake was stable (prior-year figure adjusted for 16.2m euros from Hillos), order backlog includes
  24.3 million euros from TRIOPTICS; book-to-bill ratio grew to 1.02 (prior year adjusted 0.92)

In million euros		9M/2020		9M/2019		Change in %
Revenue		209.8		236.4*		−11.2
EBITDA		48.1*		49.5		−2.8
EBITDA margin in %		22.8*		20.8*		n/a
EBIT		39.5*		41.0		−3.8
FCF		24.3*		11.8		106.4
Order intake		214.6		216.8*		−1.0
Order backlog		162.2		143.5*/**		13.0

* Adjusted (prior year for Hillos) / ** 31.12.2019

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Light & Production division: slowdown in capital expenditure in automotive industry and COVID-19 impacted business

• Revenue in Q3 exceeded figures of prior quarters, but over nine- month period marked decline in all areas; contribution of INTEROB 9.5 million euros
• Positive EBITDA in Q3; but strong earnings decrease over entire period due to underutilization in metrology and laser processing
• A major order cancellation in June and postponements resulted in much lower order intake; major order received from Gestamp in September; book-to-bill ratio at 1.02 (prior year 0.93)
• Increase in order backlog attributable to INTEROB (27.1m euros)

In million euros		9M/2020		9M/2019		Change in %
Revenue		119.0		170.9		−30.4
EBITDA		5.9*		19.2		−69.3
EBITDA margin in %		4.9*		11.2		n/a
EBIT		−3.4*		10.4		n/a
FCF		−1.0*		8.8		n/a
Order intake		121.7		158.7		−23.3
Order backlog		100.6		81.6**		23.2
					* adjusted / ** 31.12.2019

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Light & Safety division: positive business development; profitability noticeably improved

• Stable capital spending by public-sector customers; increase in revenue of more than 40% in the Americas and Asia/Pacific
• Operating results grew due to higher revenue
• Project business leads to fluctuations in order intake
• Orders for traffic safety technology received from the US and Canada

In million euros		9M/2020		9M/2019		Change in %
Revenue		82.1		75.1		9.3
EBITDA		14.0*		11.9		17.3
EBITDA margin in %		17.0*		15.9		n/a
EBIT		8.8*		6.6		32.7
FCF		7.8*		2.5		206.4
Order intake		66.1		72.2		−8.5
Order backlog		51.6		69.9**		−26.1
					* adjusted / ** 31.12.2019

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VINCORION: Plus in order intake; decrease in revenue and earnings

• Revenue lower than in prior year, which was in particular attributable to the decreases in aviation as well as energy & drive, demand in the power systems area remained good
• Lower revenue and a lower-margin product mix resulted in decline in operating result
• Order intake at prior-year level; book-to-bill ratio grew to 1.16 (prior year 1.12)
• Order backlog remained at high level

In million euros		9M/2020		9M/2019		Change in %
Revenue		91.0		96.8		−6.0
EBITDA		6.9		10.6		−35.1
EBITDA margin in %		7.5		10.9		n/a
EBIT		1.7		5.6		−70.2
FCF		−3.4		−5.1		32.6
Order intake		105.2		108.0		−2.6
Order backlog		182.2		169.7*		7.3

* 31.12.2019

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Revenue and margin targets specified

The Executive Board anticipates:

including the revenue contribution by TRIOPTICS (approx. 25 million euros), revenue in a range of 755 to 775 million euros, and an adjusted* EBITDA margin between

• 15.0 and 15.5 percent before PPA effects arising from the acquisition of TRIOPTICS

• Excluding the effects from the acquisition of TRIOPTICS: revenue of 730 to 750 million euros; adjusted* EBITDA margin at the upper end of the range of 14.5 to 15.0 percent
• Projects initiated for structural and portfolio adjustments should contribute to accelerate growth and improve the Group's profitability starting in 2021.

*adjusted for effects from structural and portfolio measures

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Agenda

01

Overview and strategy

02

Financials 9M/2020 and outlook

03

Appendix

Jenoptik Investor Relations Presentation

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Attractive photonic applications at the core of Jenoptik

				World market
					Jenoptik will focus on:
	22 bn			in Photonics:
	€ 54 bn
€ 36 bn	~ € 600 bn		−	Information processing
€ 31 bn							(i.e. semiconductor equipment
	Photonic					manufacturing and communication)
€ 27 bn
components				−	Biophotonics
	Σ 120-140bn €
31 bn€			€ 152 bn		−	Smart manufacturing
						−	Sensing, monitoring, measurement
	€ 72 bn						(public safety, traffic solutions)
						− Total addressable market for
							Jenoptik: ~300bn; CAGR ~5-6%
Solar PV & Alternative Energy			Lighting & Displays
			We aim at photonic applications
Consumer & Entertainment			Defense, Security, Law Enforcement
Advanced Manufacturing			Sensing, Monitoring, Measurement	allowing for technical differentiation.
BioPhotonics				Optical Information Processing

Source: SPIE (2016), Agileon Strategic Consultancy

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A long tradition of innovation in optoelectronics

Revenue

							14	15	16	17 18	19
1846	1946	1989 - 1991	1992 - 1998		1998 - 2006	2007 - 2016	since 2017…
Founded	State	German	New	Flexibility	Consolidation	Sustainable
in Jena by	property	Reunification	Businesses			profitable
Carl Zeiß							growth
"Workshop	The Zeiss		− IPO 1998			− Starting new
for precision	plant in		− Acquisition of				strategy
mechanics	Jena,					"More light"
	companies to
and optics"	converted					in 2018
	open up new

into state	sales
property
channels

Jenoptik Investor Relations Presentation

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Increase in revenue in major photonic core markets

Revenue by market

(prior year figures in brackets)

Medical	Other
technology			Automotive/
	6%	(5%)4%	Mechanical
	engineering
Aviation / Traffic	(5%)

17%	35%
(19%)
(34%)

19%

(19%)

Security / Defense	20%
(18%)

Semiconductor equipment

Jenoptik Investor Relations Presentation

• Automotive/Mechanical engineering: good demand in the automation & integration area, contribution by acquired companies
• Revenue with semiconductor equipment and medical technology industries grew
• 17.3% of revenue attributable to Top 3 customers (prior year 18.0%)

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Key financials 2019 of the photonic divisions and VINCORION

in million euros

Revenue (external)

EBITDA

EBITDA margin

EBIT

EBIT margin

Order intake

Order backlog

*based on total revenue

Light &		Light &		Light &
Optics		Production*		Safety		VINCORION		Group*
350.0	228.9	108.7	164.8	855.2
69.8	25.8	18.8	24.2	134.0
19.8%*	11.3%*	17.3%*	14.7%*	15.7%
57.9	14.5	11.7	17.4	88.9
16.5%*	6.3%*	10.7%*	10.5%*	10.4%
324.7	199.3	107.9	177.9	812.6
144.9	81.6	69.9	169.7	466.1

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Revenue split by division 2019

VINCORION

19.3%

40.9%	Light & Optics

Light & Safety	12.7%

26.8%

Light & Production

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Key figures - five year overview

In million euros

Revenue

EBITDA

EBITDA margin (in %)

EBIT

EBIT margin (in %)

EPS (in euros)

Free cash flow (before income tax)

Net debt

ROCE (in %)

Equity ratio (in %)

Jenoptik Investor Relations Presentation

2019	2018	2017	2016	2015
855.2		834.6		747.9		684.8		668.6
134.0		127.5		106.7		94.7		88.8
15.7		15.3		14.3		13.8		13.3
88.9		94.9		77.8		66.2		61.2
10.4		11.4%		10.4%		9.7%		9.2%
1.18		1.53		1.27		0.94		0.87
77.2		108.3		72.2		80.4		71.8
-9.1	-27.2	-69.0	-17.9	43.9
14.7		20.2		18.2		15.6		13.5
60.5		60.6		59.6		58.6		56.6

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Strong R+D commitment enables fundamentally new products; continuing expansion of sales structures abroad

R+D output					Selling expenses			Administrative expenses
in million euros		in percent	in million euros		in percent	in million euros		in percent
100						12	100	10.9	10.7	10.7	10.4	10.4	12	100			7.5			12
			8.9
80	7.9	8.4	8.3	8.0	9	80				87.0	89.3	9	80	8.1	8.4
			80.3				9
													7.1
60			66.6	69.2	68.4		60	72.6	73.6				60				6.7
								6			80.3		60.5
	53.1	57.4				6								54.0	57.1	56.1	6
40					40							40
20						3	20						3	20						3
0	2015	2016	2017	2018	2019	0	0	2015	2016	2017	2018	2019	0	0						0
					2015	2016	2017	2018	2019

Ratio of R+D output to revenue

• 2019:
  R+D output: 8.0% of revenue
  R+D expenses: 5.2% of revenue
• 43 patents registrations (prior year 44)

Ratio of selling expenses to revenue

• 2019: selling expenses 10.4% of revenue (prior year 10.4%)
• Jenoptik is consistently pursuing its strategy of internationalization

Ratio of administrative expenses to revenue

• 2019: administrative expenses 7.1% of revenue (prior year 6.7%)

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Development of Jenoptik share price compared with Dax and TecDax (indexed) in 2020

in euros

40,00	Prel. Results	Covid-19	Outlook	Results	Results
	2019		2020	H1/2020	9M/2020
35,00
30,00
					TecDax	− 1%
25,00					Dax	− 2%
20,00					JEN	− 8%
15,00	Stop sale of		Results	Acquisition of	New guidance
	VINCORION		Q1 2020	Trioptics	2020
10,00					XETRA
	Jan 2, 2020				Nov 12, 2020

ISIN / Ticker:	DE000A2NB601 / JEN	Number of shares:	57,238,115
Market cap:	~1.4 billion euros	Nominal capital:	148,819,099 euros

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Shareholders and dividend information

Shareholder structure	Thüringer					EPS		Dividend payment
		Industriebeteiligungs	2,0
		GmbH & Co. KG											1.53
		11.0%	1,6
										1.27					1.18
			1,2					1.00
				0.87
Freefloat	89.0%		0,8									0.30	0.35
		0,4		0.22	0.25
								0.13
			0,0
			2015		2016		2017	2018			2019

Major institutional shareholders (31.10.2020)

Fund Name	%	Shares	Region
Land Thüringen	11.00	6,296,193	Germany
Allianz Global Investors	10.11	5,788,418	Germany
DWS Investment	9.82	5,620,671	Germany
Norges Bank	3.08	1,761,758	Norway
Black Rock Asset Management	2.42	1,384,195	US, Germany

Source: Voting rights notifications

Jenoptik Investor Relations Presentation

5		Dividend yield
4
3
2	1,5	1.5	1.1	1.5
1					0.5
0
	2015	2016	2017	2018	2019
					30

Dates and contact

November 10, 2020

November 23, 2020

November 30, 2020

December 3, 2020

January 11/12, 2021

January 18, 2021

Contact:

Thomas Fritsche

Head Investor Relations

JENOPTIK AG

Phone: [phone] [e-mail]

Jenoptik Investor Relations Presentation

Quarterly statement "Nine months 2020" (conference call)

DZ Bank Conference (virtual)

Virtual roadshow with LBBW

Virtual roadshow with Warburg

Oddo BHF Forum (virtual)

Kepler Cheuvreux conference (virtual)

www.jenoptik.com

www.twitter.com/Jenoptik_Group

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