IR Presentation

IR PRESENTATION

Hannes Niederhauser, CEO Richard Neuwirth, CFO

November 2021

S&T AT A GLANCE

NORTH AMERICA

	10%
EMPLOYEES	*
300
	126 Mio.

42.4%

REST OF

EUROPE

85%*

EMPLOYEES	1,062 Mio.
2,806

3.6%

SLOVENIA

EMPLOYEES 713

21.6%

GERMANY

EMPLOYEES 1,119

9.6%

AUSTRIA

EMPLOYEES 588

7.8%

POLAND

EMPLOYEES 327

5%	ASIA
EMPLOYEES
*
	214
67Mio.

01 S&T PROVIDES GLOBAL IOT 4.0 TECHNOLOGY

• IoT solutions for Industrial, Medical, Transportation and Communication
• IoT grows fast: The whole Industry 4.0 market is expected to grow at a CAGR of ~15% by 2022*

03 S&T IN FIGURES

• FY 2020: EUR 1,255 Mio. revenue and EUR 130.0 Mio. EBITDA
• FY 2020: EUR 140.8 Mio. record cash flow
• 6,067 employees in 33 countries (as of December 31st, 2020)

02 S&T IS AN IT SERVICE PROVIDER WITH REGIONAL FOCUS

• Germany, Austria, Switzerland (DACH)
• Eastern Europe

04 MEMBER OF THE TECDAX® & SDAX®

• Headquarter in Linz, Austria, listed in Frankfurt, Germany
• ~ EUR 1,404 Mio. market cap as of July 31st, 2021

*	Revenues in % of S&T Group total revenues based on location of revenue generating S&T subsidiary	2
**	Source: IMS Report, ABI Research, Oracle, Markets and Markets Analysis

HIGH- AND LOWLIGHTS 9M 2021

HIGHLIGHTS		LOWLIGHTS
› 9M 2021:		› Strong order intake only partially converted to revenues
› Growth of 9.2% in revenues		› Chip shortage: ~EUR 80 Mio. of not delivered orders as of 30/9
› Increase of EBITDA by 2,3%		› Normalization expected in 2022
› Continuing strong order intake - EUR 410 Mio. in Q3 (book to bill 1.31)		› North America weak due to FX, avionics and chip shortage
› Price increases to compensate cost of chip crisis		› Cash flow burdened by EUR 40 Mio. by increased inventory level
›	September 2021 by +6%		based on semi-finished products and buffer stock
›	January 2022 +10%

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IMPACT OF GLOBAL CHIP-SHORTAGE

GUIDANCE FY 2021 ADJUSTED AT CAPITAL MARKET DAY

GENERAL DEVELOPMENT & OUTLOOK

• Lack of investments in chip factories during pandemic
• Strongly increasing chip demand driven by
• • Recovery and catch up after end of pandemic
  • Digitalization
• Outlook: Crisis will stay for critical chips until H1/2023, but complex chips (< 45nm) Q1/2022 fully available

S&T STRATEGY IN THE CHIP CRISIS

• Business Impact: EUR 79.4 Mio. of not delivered orders in Q3
• • 75% not really impacted (IT Services, Transportation, IoT Software)
  • Former Kontron/Industrial heavily impacted (EUR 71 Mio. overdue)
  • Our revenues are delayed but not lost/cancelled
• We redesign products to replace critical chips
• 2021: EUR 40 Mio. inventory increase (buffer stock + semi-finished)
• Buy critical chips on the spot market (7% higher prices) paid by customers but EBITDA impact of EUR 3 Mio. will remain

	Revenues Impact		Due to EUR 80 Mio. of delayed shipments, revenue guidance 2021 was adjusted to EUR 1,330 - 1,400 Mio.
	EBITDA Impact		Margin remain at ~ 10% and is not significantly impacted by chip crisis (price increases)

EUR 80 Mio delayed shipments will boost revenues 2022 to catch up backlog

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KPI´S 9M 2021

GLOBAL CHIP CRISIS EFFECTS BUSINESS

REVENUE	GROSS PROFIT	EBITDA
(in EUR Mio.)	(in EUR Mio.)	(in EUR Mio.)

900		350		80
800	913.8		347.7	85.6
300	83.7
700	836.4	250	317.7	60
600
500		200
400		150		40
300		100
200			20
	50
100	+ 9.2%	+ 9.4%		+ 2.3%
0		0		0
	9M 2020 | 9M 2021		9M 2020 | 9M 2021	9M 2020 | 9M 2021

NET INCOME AFTER NCI							OPERATING CASH FLOW	CASH AND CASH EQUIVALENTS
(in EUR Mio.)							(in EUR Mio.)							(in EUR Mio.)
35	48 Cent		=			48 Cent							350
								45
30									50.0					300
	31.5			30.7			35
25												250			281.9
								25
20																200						218.6
								15
15																150
									5
10												- EUR 64.6	Mio.			100
5										-5				-14.6			50
			-	2.6%														-	22.5%
								-15						0
0
		9M 2020 | 9M 2021				9M 2020 | 9M 2021			31.12.2020 | 30.9.2021

We expect to convert backlog to revenues in the next quarters and significantly lower working capital

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