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Bergisch Gladbach, 21 February 2024

INDUS publishes unaudited preliminary figures for FY 2023

- EBIT slightly above expectations
- Free cash flow clearly above target

In the financial year 2023, the portfolio companies of stock exchange listed INDUS Holding AG showed a good operating performance in what was a difficult macroeconomic environment, with the Group’s sales remaining stable at EUR 1.80 billion (previous year: EUR 1.80 billion), according to preliminary and unaudited figures. Operating income (EBIT) rose to EUR 149.6 million (previous year: EUR 133.7 million), with the corresponding EBIT margin climbing to 8.3% (previous year: 7.4%). EBIT include impairment losses of EUR 19.3 million (previous year: EUR 42.8 million) and amortization from the purchase price allocation for acquisitions (PPA amortization) in the amount of EUR 19.2 million (previous year: EUR 17.8 million).

In the context of the “PARKOUR perform” strategy program, INDUS completed the reorganization into three industrial technology segments (Engineering, Infrastructure, Materials) and sold two portfolio companies (SCHÄFER and SELZER) in mid-2023. Income from discontinued operations amounted to EUR -27.8 million (previous year: EUR -123.9 million). The Group’s earnings after taxes increased to EUR 56.1 million.

Towards the end of 2023, the INDUS portfolio companies were able to again reduce working capital quite noticeably. Free cash flow will exceed EUR 190 million (previous year: EUR 101.5 million), and thus significantly exceed the target of EUR 100 million.

“The financial year 2023 has confirmed the resilience of our realigned, future oriented portfolio even in a phase of economic weakness,” said Dr. Johannes Schmidt, Chairman of INDUS Group’s Board of Management. “Our companies generate strong free cash flow, which gives us the leeway to develop our portfolio in a focused manner.”

Increased income in Engineering and Materials segments

The companies in the Engineering segment were able to grow their sales slightly and their earnings noticeably compared to the previous year. In the Materials segment, EBIT also increased strongly on slightly lower sales. Due to the strong downturn in the construction sector, the portfolio companies in the Infrastructure segment were faced with considerable operational challenges. Sales nevertheless remained almost at the previous year’s level, with EBIT declining only slightly. EBIT also reflect the much lower impairment losses in all segments compared to the previous year.

INDUS invested around EUR 61.9 million in the existing portfolio in 2023 (previous year: EUR 54.5 million). In addition, the Infrastructure segment was strengthened by the supplementary acquisition of QUICK Bauprodukte. “We are confident that we will be able to add promising acquisitions to the portfolio in 2024. The acquisition pipeline is well filled,” said Dr. Johannes Schmidt.

Net debt decreased significantly to EUR 506.2 million as of 31 December 2023 (previous year: EUR 593.5 million), not least due to the strong reduction of working capital in the full year 2023. The debt repayment period – the ratio of net debt to EBITDA – stood at 2.0 at the end of the year (previous year: 2.3), which was clearly within the target range of 2 to 2.5. The equity ratio amounted to 37.3% (previous year: 36.8%). Cash and cash equivalents at the end of the year were relatively high at approximately EUR 266 million (previous year: EUR 127.8 million). This is attributable to a major acquisition that was not realized at the end of 2023 as well as strong returns from the reduction in working capital in the fourth quarter. “With liquidity at a normalized level and correspondingly lower total assets, the equity ratio is 40%,” said Johannes Schmidt.

The full financial statements for the financial year 2023 including the forecast for the financial year 2024 are expected to be published on the company’s website on 20 March 2024.

Axel Meyer

COO Engineering
Axel Meyer (German citizen, born 1968) has been a member of the INDUS Board of Management since October 2017.

Until joining INDUS, he held various management positions at Schuler AG, most recently as Managing Director of Schuler Pressen and Head of the Service Division of the Schuler Group, Goeppingen, Germany.

Previously, Axel Meyer worked as a member of the Board of Management of the international management consultancy IMAGIN Prof. Bochmann AG, Eppstein im Taunus, Germany. He started his professional career in the Schuler Group's Solid Forming Division, initially in global sales and later as Division Manager.

Axel Meyer studied industrial engineering in Germany and the USA and earned a Master of Mergers & Acquisitions (LL.M.) at the Frankfurt School of Finance & Management while working. 

Gudrun Degenhart

COO Materials Solutions
Gudrun Degenhart (German citizen, born 1970) has been a member of the Board of Management of INDUS since October 2023.

She has more than 20 years of experience in the management and development of portfolio companies in Europe, USA and the Asia-Pacific regions.

Before joining INDUS, Gudrun Degenhart was CEO for the German portfolio companies of the international service group ISS. She previously worked for the thyssenkrupp Group, including as CEO of the international business unit for special lifts and as CEO of Materials Western Europe and Asia-Pacific. She gained experience in medium-sized companies as a board member of the construction technology company Schöck.

A graduate in business administration, she began her career by building up the Central and Eastern European activities of the construction specialist Lindner Group. 

Dr. Jörn Großmann

COO Infrastructure
Dr. Jörn Großmann (German citizen, born 1968) has been a member of the INDUS Board of Management since January 2019.

Up until joining INDUS, he worked for the Dutch group Aalberts Industries, with his last position being the sole managing director of Impreglon, Lüneburg, Germany.

He previously held various positions at the Georgsmarienhütte Group, initially becoming managing director of Mannstaedt, Troisdorf, Germany and later managing director of GMH Edelstahl Service Center Burg and GMH Engineering. Before Dr. Großmann became the managing director of Buderus Feinguss, Moers, Germany, he worked as a development engineer and as a technical director for Doncasters Precision Castings, Bochum, Germany.

He studied material sciences and earned a doctorate in the field of natural sciences.

Dr. -Ing. Johannes Schmidt

CEO
Dr. -Ing. Johannes Schmidt (German citizen, born 1961) has been a member of the Board of Management of INDUS since January 2006. He has assumed the position of CEO since July 2018.

Dr. -Ing. Schmidt was previously the sole managing director of ebm-papst Landshut, Germany, a manufacturer of ventilation motors and fans. During his tenure there, his main achievements included advancing the development of new product platforms and the internationalization of production sites.

Dr. -Ing. Schmidt began his career at Richard Bergner, a manufacturer of electrical instruments from Schwabach, Germany. He initially led product development before rising to the position of managing director during his 12 years at the company.

Schmidt, who studied mathematics, gained an engineering doctorate in mechanics from the Technical University of Darmstadt. 

Rudolf Weichert

CFO
Rudolf Weichert (German citizen, born 1963) is the CFO of INDUS.

Before joining the INDUS Board of Management in June 2012, he was a Partner at KPMG for nine years. He spent three of these years in Detroit, Michigan, United States, where he worked mainly with companies in the engineering, and materials trading industries.

Mr. Weichert, who holds a masters degree in business administration, worked for KPMG for about 20 years, primarily in the firm’s Duesseldorf office, where he worked mainly with multinational manufacturing corporations.