Jenoptik : Investor Relations (PDF | 1,85 MB)

The leading light in Photonics.

Investor Presentation

August 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 H1/2020 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%

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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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Agenda

01

Overview and strategy

02

Financials H1/2020 and outlook

03

Appendix

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1st half-year 2020: Jenoptik with good business in major areas

	Revenue
	− 329.0 million euros (prior year adjusted* 373.4m euros)
	EBITDA	− Adjusted 42.2 million euros (prior year 54.3m euros)
	Order intake
	− 333.9 million euros (prior year adjusted* 381.6m euros)
	Free cash flow	− Adjusted 17.8 million euros (prior year −14.6m euros)

	Business
	− Corona pandemic had varying impact on Jenoptik's
	development	businesses
		− Measures for site optimization/restructuring and cost
		reduction implemented
		− External growth was accelerated through acquisition of
		INTEROB (February) and TRIOPTICS (July)
		*without Hillos

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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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As expected, demand lower than in prior year due to the corona pandemic; book-to-bill ratio stable

Order intake in million euros

600

−12.5%

400
381.6*
	333.9
200
0
H1/2019	H1/2020

• Project postponements and order cancellations led to decline in order intake, especially in the Light & Production division
• H1/2019: order intake of 392.5m euros in total, including orders of Hillos of 10.9 million euros
• Book-to-billratio 1.02 (prior year adjusted 1.02)

Order backlog in million euros
600
	+2.9%
	464.7*	478.0
400
200
0
	Dec 31, 2019	Jun 30, 2020

• Approx. 60% to be converted to revenue in 2020 (prior year approx. 65%)
• INTEROB's order backlog: 13.9 million euros
• Order backlog 2019 incl. Hillos: 466.1 million euros
• Frame contracts: 44.4 million euros
  (31/12/19: 49.9m euros)

*adjusted = without Hillos

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Revenue decline attributable to COVID-19 pandemic and development in the automotive sector

Revenue in million euros
500,0
					− 11.9%
400,0
		373.4*
300,0					− 15.7%		329.0
				259.5
200,0			212.7
	195.1*
178.3*				164.4	164.6
100,0
0,0								*adjusted = without Hillos
Q1/19	Q2/19	H1/19	Q3/19	Q4/19	Q1/20	Q2/20	H1/20

• Good business with the semiconductor equipment industry and public-sector customers continued
• As expected, significant reduction in the Light & Production division (business with automotive industry)
• Revenue contribution of INTEROB: 5.3 million euros
• In H1/2019: total revenue 383.1 million euros included contribution of Hillos of 9.7 million euros

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Foreign revenue again at ~74 percent;

Asia/Pacific with strongest decline (in %) due to pandemic

Middle	17.0						H1/2020
4:9%					H1/2019
East/Africa	16.2
Asia/Pacific			37.2	−23.6%
				48.7*
Americas				89.2			−14.2%
				104.0*

100.5

Europe0:6% 99.9*

Germany	85.0	−18,7%
		104.6*

*adjusted = without Hillos

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Profitability improved in the course of the year 2020

EBITDA in million euros						− Adjusted EBITDA affected by lower
60
								revenue
50			54.3*			− 22.3%			− Effects from structural and portfolio
40					42.6			42.2*	projects of minus 4.4 million euros
				37.4			− Adjusted EBITDA margin of 12.8%
30		30.5*
20	23.8					24.9*		(prior year 14.5%)
						− Not adjusted: EBITDA 37.9 million euros
10						17.3*
							/ margin 11.5%
0
	Q1/19	Q2/19	H1/19	Q3/19	Q4/19	Q1/20	Q2/20	H1/20

EBIT in million euros							− Adjusted EBIT margin of 6.0%
60
								(prior year 8.7%)
50						− 39.7%			− PPA effects of −3,6 million euros
40
								(prior year −3,5 million euros)
30			32.5*		30.8				− Not adjusted: EBIT 15.6 million euros /
20			25.9
						margin 4.7%
	19.7*					19.6*
10						13.5*
12.8
					6.2*		*adjusted for effects arising from site optimization,
0
								restructuring as wells as costs related to M&A
	Q1/19	Q2/19	H1/19	Q3/19	Q4/19	Q1/20	Q2/20	H1/20
	activities

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Lower revenue as well as effects arising from structural and portfolio measures burdened earnings figures

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 = without Hillos

H1/2020

329.0

33.3%

93.5

37.9 / 42.2

15.6 / 19.6

−2.2

13.4

10.6

0.18

H1/2019

373.4*

36.0%

103.0

54.0 / 54.3

32.2 / 32.5

−1.5

30.7

24.2

0.42

• Gross margin declined due to higher fixed costs components
• Functional costs decreased by 9.2%
• • R+D: slightly below prior year
  • Selling: marked decline
  • Administrative: slightly reduced
• Tax rate at 20.8% (prior year 21.1%), cash-effective tax rate of 22.7% (prior year 15.2%)

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Free cash flow noticeably improved; good liquidity situation; active working capital management

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)

H1/2020

38.1

−3.3

34.8

−18.8

16.0

(17.8)

H1/2019

53.5

−51.5

1.9

−16.6

−14.6

• Working capital ratio at 26.9% slightly lower than at the year end 2019, decline compared with the same period in the prior year (31/12/19: 25.5% / 30/06/19: 30.8%)
• Cash flow from operating activities improved significantly, as the increase in inventories was more than offset by the reduction in trade receivables
• Financial resources available at short notice of more than 123 million euros (31/12/19: almost 170m euros)
• Capital expenditure grew to 21.2 million euros (prior year 16.8m euros)
• Net debt came to 26.6 million euros (31/12/19: minus 9.1m euros), in spite of paying the first instalments for INTEROB, repayment of a debenture loan and higher capital expenditure
• Equity ratio remained at a good level of 61.3% (31/12/19: 60.5%)

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

• Business with semiconductor equipment industry remains good; decline in the areas of biophotonics and industrial solutions; prior-year revenue adjusted by contribution of Hillos of
  9.7 million euros
• Earnings reduction due to underutilization in some areas
• On a comparable basis, order intake was stable (prior-year figure adjusted for 10.9m euros contributed by Hillos);
  book-to-bill ratio grew to 1.01 (prior year adjusted 0.93)

In million euros		H1/2020		H1/2019		Change in %
Revenue		137.7		153.0*		−10.0
EBITDA		30.7*		32.0		−4.3
EBITDA margin in %		22.1*		20.8*		n/a
EBIT		25.1*		27.0		−7.0
FCF		16.7*		−2.6		n/a
Order intake		139.6		142.1*		−1.7
Order backlog		139.0		143.5*/**		−3.5

* 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

• Automation business stable in particular due to contribution by INTEROB (5.3 million euros), marked decrease in metrology and laser processing
• Underutilization in two business units caused strong decline in earnings
• One major order cancellation and postponements resulted in much lower order intake; book-to-bill ratio at 0.87 (prior year 1.01)
• Increase in order backlog attributable to INTEROB

In million euros		H1/2020		H1/2019		Change in %
Revenue		74.3		111.3		−33.2
EBITDA		−3.4*		11.9		n/a
EBITDA margin in %		−4.5*		10.7		n/a
EBIT		−9.5*		5.9		n/a
FCF		1.3*		1.6		−22.1
Order intake		65.0		113.0		−42.5
Order backlog		90.6		81.6**		11.0
					* 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 of revenue, in particular 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		H1/2020		H1/2019		Change in %
Revenue		55.7		48.4		15.1
EBITDA		10.9*		6.6		66.9
EBITDA margin in %		19.6*		13.5		n/a
EBIT		7.4*		3.0		146.5
FCF		6.6*		0		n/a
Order intake		41.9		50.6		−17.3
Order backlog		54.1		69.9**		−22.6
					* adjusted / ** 31.12.2019

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VINCORION: stable revenue; plus in order intake

• Revenue almost reached prior-year level, in particular due to good demand in the area of Power Systems
• Mix effects in revenue resulted in decline in the operating result
• More orders won than in the same period in the prior year, book-to-bill ratio grew to 1.43 (prior year 1.25)
• Order backlog substantially higher than in all quarters of the prior year

In million euros		H1/2020		H1/2019		Change in %
Revenue		58.8		59.1		−0.5
EBITDA		4.1		4.5		−7.7
EBITDA margin in %		7.0		7.6		n/a
EBIT		0.7		1.2		−42.7
FCF		0.1		−7.4		n/a
Order intake		84.3		73.8		14.2
Order backlog		193.6		169.7*		14.1

* 31.12.2019

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Revenue and margin targets specified

Fiscal year 2020

Executive Board anticipates

• Revenue of between 770 to 790 million

euros (excluding effects from the expected acquisition of TRIOPTICS GmbH)

• Adjusted EBITDA margin of between 14.5 and 15.0 percent (adjusted for effects from structural and portfolio projects)

supported by the measures taken to limit the impacts of the pandemic and in expectation of a stronger second half of the year

(precondition: no 2nd wave of corona and at least a slight recovery of the economy)

Projects initiated for structural and portfolio adjustments should contribute to accelerate growth and improve the Group's profitability starting next year at the latest.

Strategy 2022

More	More	More
Focus	Innovation	International

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Agenda

01

Overview and strategy

02

Financials H1/2020 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

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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

in million euros		in percent
100						12
80			66.6	69.2	68.4	9
60	53.1	57.4
						6
40
20						3
0						0
	2015	2016	2017	2018	2019

Selling expenses				Administrative expenses
in million euros		in percent	in million euros		in percent
100				87.0	89.3	12	100						12
			80.3
80	72.6	73.6			9	80						9
											60.5
								54.0	57.1	55.8	56.1
60							60
						6							6
40							40
20						3	20						3
0						0	0						0
	2015	2016	2017	2018	2019			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
	2019		2020	H1/2020
35,00
30,00
				TecDax	+1%
25,00				Dax	− 3%
20,00				JEN	− 5%
15,00	Stop sale of		Results	Acquisition of
	VINCORION		Q1 2020	Trioptics
10,00				XETRA
	Jan 2, 2020			Aug 11, 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 (31.07.2020)

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
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Dates and contact

August 19, 2020

August 27, 2020

September 4, 2020

September 23, 2020

September 23, 2020

October 14, 2020

November 10, 2020

Contact:

Thomas Fritsche

Head Investor Relations

JENOPTIK AG

Phone: [phone] [e-mail]

Jenoptik Investor Relations Presentation

Bankhaus Lampe conference (virtual) Roadshow Zurich (virtual) dbaccess TMT conference (virtual) Berenberg conference (virtual) Baader conference (Munich)

Jefferies European Mid-Cap Forum (virtual)

Quarterly statement "Nine months 2020" (conference call)

www.jenoptik.com

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