S&T : IR Presentation

IR PRESENTATION

Q2 I 6M UPDATE

Hannes Niederhauser, CEO

Richard Neuwirth, CFO

August 2020

S&T AT A GLANCE

01 S&T PROVIDES GLOBAL IOT 4.0 TECHNOLOGY

• S&T offers IoT solutions for Industrial & Transportation
• IoT grows fast: The whole Industry 4.0 market is expected to grow at a CAGR of ~15% by 2022*

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

• • Germany, Austria, Switzerland (DACH)
  • East Europe
• Revenues in % of S&T Group total revenues based on location of revenue generating S&T subsidiary
• Source: IMS Report, ABI Research, Oracle, Markets and Markets Analysis

03 S&T IN FIGURES

• 2019: EUR 1,122.9 Mio. revenues and EUR 111.7 Mio. EBITDA
• 2019: Strong op. cashflow (EUR 83.4 Mio.) and high liquidity (EUR 312.3 Mio.)
• 4.934 employees in 32 countries

04 MEMBER OF THE TECDAX® & SDAX®

• Headquarter in Linz, Austria, listed in Frankfurt, Germany
• ~ EUR 1.5 Bn. market cap as of 5th of August 2020
• 2019 trading volume of ~ EUR 1 Bn.

2

S&T HIGHLIGHTS

PROFIT FOCUS

› Revenue Q2 2020 (Q2 2019):

+8.3% to EUR 268.7 Mio. (EUR 248.1 Mio.)

• EBITDA Q2 2020 (Q2 2019):
  +16% to EUR 26.9 Mio. (EUR 23.2 Mio.)
• Net Income after NCI Q2 2020 (Q2 2019): +8% to EUR 19.6 Mio. (EUR 18.2 Mio.)

FINANCE GROWTH

• Working Capital Optimization progressing well
  through PEC program, operating Cash Flow improved by ~ 39 Mio. (6M 2020: EUR 27.2 Mio. | 6M 2019: minus 11.7 Mio.)
• Cash of EUR 257.7 Mio. at hand as of 30th of June 2020
• Sufficient liquidity available to finance organic and an-organic growth

LEADING IOT ALLIANCE

• Manufacturing cooperation and IoT cooperation with Foxconn in progress
• Alliance with Microsoft and Intel for Industry 4.0 Cloud Solutions
• 5G stack for IIoT extended by acquisition of Iskratel, SI

SHAREHOLDER FOCUS

• ESG rating improvements ongoing
• Continuous dividend increase: 2014 - 2018: 7ct; 8ct; 10ct; 13ct; 16ct; dividend for FY 2019 postponed to 2021 due to Corona crisis;
• 2020: new Share buyback program I 2020 started (390T shares purchased until 30th of June 2020), 1.147 Mio. treasury shares as of 30th of June 2020

3

Q2 2020

EXCELLENT RESULTS DESPITE COVID-19 PANDEMIC

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

300			120		30
250		268.7	100	103.8	25	26.9
	248.1
200		80	20	23.2
	89.2
150			60		15
100			40		10
50		+ 8.3%	20	+ 16.3%	5	+ 16%
0			0		0
	Q2 2019 | Q2 2020		Q2 2019 | Q2 2020		Q2 2019 | Q2 2020

NET INCOME AFTER NCI						OPERATING CASHFLOW	CASH AND CASH EQUIVALENTS
(in EUR Mio.)						(in EUR Mio.)							(in EUR Mio.)
20																		350
							20					20.8
15														300
								15
																250
																		276.1
																			257.7
																		200
10									10
											+ EUR 19.5 Mio.			150
					10.1
		8.8
					5									100
5
										1.3					50
				+	14.8%															-	EUR	18.4 Mio.
0									0									0
		Q2 2019 | Q2 2020				6M 2019 | 6M 2020			31.03.2020 | 30.06.2020

Strong Q2 2020 against global economic break-down caused by Covid-19| Operating Cashflow improved by EUR 19.5 Mio. in Q2 2020

4

6M 2020

GOOD RESULTS IN ALL PARAMETERS

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

600				60
500		200	211.6	50
538.7		52.0
400	473.8	150	174.5	40
44.3
300		100		30
200				20
100		50		10
+ 13.7%		+ 21.3%	+ 17.4%
0		0		0
	6M 2019 | 6M 2020		6M 2019 | 6M 2020		6M 2019 | 6M 2020

NET INCOME AFTER NCI						OPERATING CASHFLOW	CASH AND CASH EQUIVALENTS
(in EUR Mio.)								(in EUR Mio.)							(in EUR Mio.)
20									15								350
						19.6	10			27.2			300
15		18.2									312.3
														250
								5												257.7
															200
10									0
										+ EUR 38.9	Mio.			150
								-5
5									-11.7					100
							-10						50
0				+	8%				-15								0			-	EUR	54.6 Mio.
									6M 2019 | 6M 2020		31.12.2019 | 30.06.2020
		6M 2019 | 6M 2020

Despite first Corona headwinds, strong 1st HY 2020 | Operating Cashflow improved by ~ EUR 38.9 Mio.

5

S&T BUSINESS MODEL

	IT SERVICES
SERVICES EE		SERVICES EE
> Eastern Europe
Revenue plan 2020:
EUR 480 Mio.*	Mid-term targets:
	>	EBITDA** > 6%
	> GM > 30%
	>	Growth p.a.: 6%

		IOT SOLUTIONS EUROPE			IOT SOLUTIONS AMERICA
				Medical
INDUSTRIAL	TRANSPORT	MEDICAL	COMMUNICATIONS	SMART ENERGY	IOT ASIA	IOT NORTH AMERICA
Revenue plan 2020:						Revenue plan 2020:
EUR 660 Mio.*		Mid-term targets:			EUR 145 Mio.*	Mid-term targets:
			>	EBITDA** > 14%			>	EBITDA** > 10%
			>	GM > 40%				>	GM > 40%
			>	Growth p.a.: 12%			>	Growth p.a.: 12%

IoT Solutions Europe Technologies to be pushed additionally via S&T sales channels in North America, Asia and Eastern Europe

* incl. I/C revenues before Iskratel+ Citycomp acquisition

** before HQ-fee distribution

6

IT SERVICES

REVENUE*	EBITDA	ADJ. EBITDA
		MARGINS***
235.5	16.9
14.9
213		5.0%	5.1%

10.2** 11.7**

6M 2019 | 6M 2020

6M 2019 | 6M 2020

6M 2019 | 6M 2020

• S&T Eastern Europe adopted faster to Corona crisis, Corona impacts will be minor
• In general Corona impact lower than in West Europe (less cases, less travelling)
• Delays/cancellations in deployments are compensated by
• • More public business
  • "Corona" subsidies on labor cost
  • Home office/VPN equipment
• EBITDA margin growing appr. 0.5% vs 2019
• Good growth of Home Office, Network & Security, SAP Hana and Public Business

Macroeconomic situation: Eastern Europe did grow stronger than Western Europe

• 3rd Party revenues including intercompany revenues
• Difference based on charged management fees from S&T AG (part of IT Services Segment)

*** HQ-fee adjusted EBITDA in % of external revenue	7

IOT SOLUTIONS EUROPE

REVENUE*

310.4

237.3

6M 2019 | 6M 2020

EBITDA	ADJ. EBITDA
	35.6**	MARGINS***
28.9**
	31.8	14.6%
		13.8%
26.5
6M 2019	| 6M 2020	6M 2019 | 6M 2020

• Highest EBITDA (before HQ-fee) contribution to the group of 60% in Q2 2020
• Strong growth due to growing IIOT market
• Business well adopted to Corona crisis:
• • Medical booming (Dräger, Maquet, GEHC)
  • Public business (trains)
  • Less subsidies due to full utilization
• Profit growth continues due to increased share of software products in the S&T portfolio
• M2M (IIoT) communication expanded by newly acquired 5G know-how (Iskratel)

"IoT Solutions Europe" segment drives profitability further

• 3rd Party revenues including intercompany revenues
• Difference based on charged management fees to S&T AG (part of IT Services Segment)

*** HQ-fee adjusted EBITDA in % of external revenue	8

IOT SOLUTIONS AMERICA

REVENUE*EBITDA

ADJ. EBITDA MARGINS***

› Two largest customers (~ 50% of revenues, but

low margin) phasing out, Avionics weaker

77.9

5.2** 4.7**

5.2**

8.8%

›	Twitch and GEHC partially compensate
›	New projects have lower revenues but

66.9

3.3

2.9

6M 2019 | 6M 2020

6M 2019 | 6M 2020

7.3%

6M 2019 | 6M 2020

improved EBITDA

› Negative impact of restructuring in 6M 2020

approx. EUR 1 Mio.

› GM improvement on track GM: 34,8% (6M

2019) vs. 37,1% (6M 2020)

› Book to bill 6M 2020 > 1,4

Canada business weak | Further improvement measures identified and in execution

• 3rd Party revenues including intercompany revenues
• Difference based on charged management fees to S&T AG (part of IT Services Segment)

*** HQ-fee adjusted EBITDA in % of external revenue	9

ITP PROGRAM (`IMPROVE TECHNOLOGY PENETRATION´)

PROGRAM TO BOOST S&T'S GROWTH AND MARGINS

SUSIETEC

SUSiEtec IoT software framework: Enabling machine learning (AI)

• Improve software product portfolio: Embedded SW, Soft PLC, TSN (real time networks)
• EUR 80 Mio. software revenues planned by 2023 + triggering additional IoT product sales

SMART ENERGY

IoT-ready Smart Grids: From hardware up to data management software

In Mio. EUR

21 2019

802023

In Mio. EUR

49 2019

EXCELLENT POOL OF ENGINEERS

• Cost efficient in-house resources in Eastern Europe
• 2019: EUR 170,5 million R&D costs (15,2% of revenues) as of 40% paid by customers
• Around 3.000 engineering heads worldwide

740

• Revenue plan of EUR 100 Mio. until 2023

100

2023

In Mio. EUR

677

2,649

TRAIN CONTROL SYSTEMS

Mission critical control systems for high speed trains

• Revenue plan of EUR 140 Mio. until 2023

992019

1402023

383

485

Engineering	Field Engineers
Production	Sales
Others

Avionics investments currently on hold

10

TECHNOLOGY

SMART FACTORY

OUR OFFERING FOR A SMART FACTORY: FROM EDGE TO CLOUD

EDGE DEVICES

GATEWAYS / PLC

FOG

CLOUD

EMBEDDED SOFTWARE	IOT INTERFACE	ON PREMISE COMPUTING		COOPERATION WITH
CUSTOMIZED	SECURITY	& STORAGE		MICROSOFT AZURE
	"REAL-TIME NETWORKS"

CUSTOMER EXAMPLES

> SUSiEtec Workforce-Solution

• Driverless transport vehicles for production and logistics operations Enabling IoT navigation software for sensor-based tracking
• Printing industry - IoT Industry Computer Platforms to operate printing presses
• Manufacturer of injection molding machines

Modern user experience and process control in factory environment

COOPERATION WITH FOXCONN

• Roll out of IoT Software together in Asia
• Cooperate on leading Industry 4.0 production standards and technologies
• Create a global Industry 4.0 factory

11

TECHNOLOGY

MEDICAL AND HEALTHCARE MARKET

MEDICAL SYSTEMS

• S&T designs and delivers Smart Medical Control Systems
• Total volume 2019 appr. EUR 100 Mio.

Top customers :

• GE Healthcare (USA + Israel)
• Dräger, Maquet, Philips, Fresenius, Medtronic, Siemens
• S&T is qualified as mission critical supplier and will stay open during Corona crisis (Augsburg, Ismaning and San Diego facilities)
• Strong business demand (+ 50%)

COMPLETE MEDICAL SOLUTION OFFERING

MEDICAL SERVICES

• S&T runs service contracts for technical equipment in hospitals
• Total volume 2019 appr. EUR 40 Mio.
• No shut down for mission critical services during corona crisis

DRÄGER VENTILATOR SYSTEMS

• Global Top Player and Top 3 Customer of S&T (EUR 20 Mio. FY2019)
• Control systems designed and delivered since 10 years by Kontron
• Business currently exploding - weekend shifts in Augsburg + Ismaning

12

UPDATE PEC PROGRAM

SIGNIFICANT IMPROVEMENTS ON CASHFLOW AND WC RATIO

OPERATING CASH FLOW

(IN EUR MIO.)

				83.4
	61.4			Achsentitel
		44.9
			35.5
26.7
2015	2016	2017	2018	2019

27.0

Q2 19

Q2 20

-13.0

Achsentitel

ONE TIME EFFECTS ON OPERATING CASH FLOW IN Q2

IN TEUR	NON-ORGANIC CASH FLOW IMPACTs

-2,254 Settlement HU for Kapsch CarrierCom in Q2 2020

WORKING CAPITAL IN MIO. EUR | RATIO IN % OF REVENUES

(IN EUR MIO.)

						15.8%	13.7%		21.8%
										14.5%
		23.7%	13.8%	156.4	153.9		221.3
										168.9
		119.2	121.5
9.6%
45
2015	2016	2017	2018	2019				Q2 19		Q2 20

in EUR Mio.	2018	Q2 2019	2019	Q2 2020
Revenues	990	249	1,123	268,6
Inventory	74 days	95 days	73 days	87 days
(131 Mio.)	(167 Mio.)	(147 Mio.)	(158 Mio.)
A/R	75 days	63 days	69 days	61 days
(202 Mio.)	(172 Mio.)	(212 Mio.)	(180 Mio.)
Factoring	56 Mio. (20%)	56 Mio. (24%)	63 Mio. (23%)	58 Mio. (24%)

13

ONE-TIME EFFECTS IN Q2 | 6M 2020

	IN KEUR	ONE TIME PROFIT EFFECTS (Q2)
-382	Restructuring America (finished)
-1,384	cost to for other supplier sources in Corona times
+1300	Settlement HU
-332	Expenses on stock options plan
-788	Total impact on Q2 results
	IN TEUR	R&D CAPITALIZATION Q2

+3,488 Capitalization R&D in Q2

-2,997 Amortization of R&D in Q2

+491 Impact R&D Capitalization

IN MIO. EUR ONE TIME REVENUE EFFECTS Q2 2020

+21.3 New acquisitions

-10.4 Cancelled business

+10.9 Total impact on Q2 2020 revenues

IN TEUR IMPACTS FROM PPA

1,904 Q2 2019 Amortization

2,623 Q2 2020 Amortization

- 719 Increase in PPA Amortization

Adjusted EBIT in Q2 amounts to EUR 12.7 Mio. vs 11.9 Mio. actual | 4% non-organic growth in Q2 2020

14

S&T GROUP BALANCE SHEET

Mio. EUR	30/06/2020	31/12/2019
NON-CURRENT ASSETS	445,0	457,2
Fixed Assets	411,4	422,8
Other Assets	33,7	34,4
CURRENT ASSETS	699,6	768,5
Inventories	158,0	146,8
Trade receivables	180,5	212,1
Contract Assets from Customers	23,3	27,2
Cash and cash equivalents	257,7	312,3
Other receivables and prepayments	63,8	70,1
Total Assets	1.144,7	1.225,7

	30/06/2020	31/12/2019
CAPITAL AND RESERVES	383,5	385,1
Equity	383,5	385,1
NON-CURRENT LIABILITIES	311,0	331,8
Long-term loans and borrowings	210,7	220,0
Other Non-Current Liabilities	100,3	111,8
CURRENT LIABILITIES	450,1	508,8
Trade payables	169,6	205,0
Contract Liabilities from Customers	73,4	60,0
Short-term loans and borrowings	52,7	62,8
Other Current Liabilities	154,4	181,1
Total Liabilities & Equity	1.144,7	1.225,7
Equity Ratio	33,5%	31,4%
Net Cash*	7,1	29,5
Working Capital	192,1	181,1
Working Capital excluding IFRS 15**	168,9	153,9

Seasonal decrease of balance sheet sum | Cash represents 22.5% of Total Assets

• Definition Net Cash: Cash and cash equivalents less non-current and current financing liabilities (excl. liabilities from leasing according to IFRS 16)

** Definition Working Capital: Inventories plus trade receivables less trade payables (excl. IFRS 15 contract assets and liabilities)	15

BACKLOG & OPPORTUNITIES

ORDERS AND DESIGN WINS REMAIN STRONG IN Q2 2020

BACKLOG DEVELOPMENT REMAINS POSITIVE

			+21.6%
2500
			2,625
2100			2,158
1700
1300
900	+8.2%
	841	910
500
100
-300	Backlog	Project Pipeline
		31.12.2019	30.06.2020

(in EUR Mio.)

	SELECTED ORDERS | DESIGN WINS 6M 2020	COUNTRY	VOLUME EUR
	Public safety/emergency system "112"	BG	58 Mio.
	Control for high-speed train	LIT, BG, CN	38 Mio.
	Control for high-speed train	CZ	22 Mio.
	Border control	HR	36 Mio.
	Global leader in medical equipment	USA	14 Mio.
	Medical respirator machines	GER	12 Mio.
	Autonomous driving	USA	7 Mio.
	Leading robot company in Europe	GER	7 Mio.
	Medical respirator machines	GER	6 Mio.

Growth in medical and public customers compensates slump in avionics

16

2020 S&T WILL EXCEED FIRST TIME 10% EBITDA-MARGIN

EBITDA

(IN EUR MIO.)

130									111.7	115.0
110								90.5
90							68.1
70
50		22.9		28.3		34.4
30
10
-10
	2014		2015		2016	2017	2018	2019		2020fc
	Backlog EUR Mio.	12/14	12/15	12/16	12/17	12/18	12/19	6/20
	Project Pipeline	644	701	1,002	1,105	1,632	2,158	2,625
	Scheduled Orders	157	181	306	474	841	841	909

REVENUE

(IN EUR MIO.)

1,150

1,123

IoT Solutions | America

991

		IoT Solutions | Europe	882
		IT Services
		504
385	468

2014

2015

2016

2017

2018

2019

2020fc

CONTINUOUS GROSS MARGIN AND EBITDA MARGIN GROWTH

GM	33.0 %	33.9 %	33.5%	35.7 %	36.3%	37.0%	> 38%
EBITDA	5.9%	6.0%	6.8%	7.7%	9.1%	9.9%	> 10%

Guidance FY 2020*: minimum EUR 1.150 Mio. Revenue @ EUR 115 Mio. EBITDA , strong Q2 with low impacts by Corona

* Excluding M&A of Iskratel and CITYCOMP

17

AGENDA 2023

GUIDANCE CONFIRMED EVEN AFTER CORONA IMPACTS

• Organic growth in line with market growth per segment

› Additional organic growth potential from the ITP programs

› More inorganic acquisitions based on reduced Corona prices

ACQUISITIONS

EMBEDDED ODM

GROWTH IN ASIA

Potential up to

EUR 400 Mio.

SERVICES

Potential up to

Potential up to

EUR 200 Mio.

SMART METER

EUR 100 Mio.

Potential up to

2018

Potential up to

EUR 100 Mio.

EDGE SERVER

IOT TECHNOLOGIES

EUR 200 Mio.

EUR 1 BN.

5 years plan

2018

2023p

Growth

Potential up to

EUR 300 Mio.

Revenues

990 Mio.

2,000 Mio.

+102%

EBITDA

90.5 Mio.

220 Mio

+143%

EPS

70 cent

175 cent

+150%

420

2023

EUR 2 Bn.

Agenda 2023 after Corona: reduced organic growth in 2020 will be compensated by more M&A activities at discounted prices

18

BENEFIT FROM THE COVID-19 PANDEMIC

M&A OPPORTUNITIES WHILE COVID

Agenda 2023 plans for EUR 2.000 Mio of revenues

• Half of growth by M&A (acquire EUR 100 Mio. revenues per year)
• EUR 250 Mio. of cash, EUR 25 Mio. of treasury shares and strong cash flow support this strategy without need for major capital increases
• Internal M&A department and existing pipeline > 10 acquisitions

Corona is a gamechanger in acquisition landscape

• Lack of acquisition financing reduces potential buyers (no PE funds)
• Valuations drop by 30% based on
• Lower profits (currently) at targets result in lower valuations
• Less potential buyers
• DD Handicaps based on travel restrictions

S&T M&A targets

• Restructuring situations at no profit
• High synergies with S&T -> achieve 10% EBITDA within 2 years
• Valuations down to 40% of revenues (before 60%)

MEASURES TAKEN AND IMPACTS

No revenue impact on Q2 (EUR 268.6 Mio.) vs Q1 (EUR 270.1 Mio.)

• Qualify 2nd sources to repair supply chain (H1: 3,117 TEUR add. cost)

Focus on Covid-19 winner markets and public sector

• EUR 50 Mio. in 2020 added in Medical (respirators - Dräger, GE)
• public sector increases to ~50% of new projects (2019: 32%)
• EUR 20 Mio./2020 lost in avionics

EUR 4,5 Mio labor cost reductions in Q2, FC EUR 2,5 Mio. in Q3

• Management/Board waived 20% of salary in Q2+Q3
• 8% of subsidized "reduced hours" -> no layoffs (mainly IT services)
• Q3 another 2.5 Mio. expected

Up to 70% of all employee's home office work -> no productivity impact

• S&T supports Home office trend for years, IT infrastructure exists
• Good results, we will increase Home office ratio permanently to 25%
• Mission critical production (Augsburg, San Diego) no shut down

S&T acquired Iskratel & CITYCOMP (adds EUR 140 Mio. in 2021) - we will acquire min. EUR 300 Mio. within Corona period 2020/2021

19

M&A UPDATE I: ISKRATEL GROUP

TRANSACTION	PRODUCT DIVISIONS
› Acquisition of Iskratel group	› Industrial (48%): trains, public safety / 112, industrial IOT
›	Locations/owned buildings: SLO 31,000m², RUS 4,000m²	›	Broadband (33%): gateways, CPE (last mile infrastructure)
›	Purchasing price fix EUR 37.5 Mio. + 0.56 * EBITDA (2020-2022)	›	Communication (19%): 5G core, IMS

• 2019 key figures: Rev EUR 116.5 Mio. @ EUR 2.6 Mio. EBITDA
• 907 FTEs (590 SLO, 201 RUS, 70 MK)
• Revenues: 63% East Europe (mainly Adriatic), 37% Russia
• 2019: 46.2 Mio. equity (47%) @ 9.5 Mio. Net Cash, 21.8 Mio. WC

SYNERGIES	IMPACT 2022
› Add Iskratel to S&T IOT Europe solutions	20 Mio. Rev
› Add 5G know how to S&T Industrial + transportation
›	Utilize Iskratel engineering	3.6 Mio. cost
›	Joint sourcing	1.2 Mio. cost

ISKRATEL RESULTS

	2018	2019	2020	2021	2022
Revenues (in EUR Mio.)	104	116.5	105	115	146
EBITDA (in EUR Mio.)	7.5	2.6	4.2	8.2	15.1
EBITDA Marge (in %)	7.2	2.2	4	7.1	10.3

20

M&A UPDATE II: CITYCOMP

ABOUT CITYCOMP

• CITYCOMP provides Multi-Vendor-IT Services
• 5,000m² headquarter near Stuttgart (own property)
• Revenue FY 2019 of EUR 38 Mio. @ 10% EBITDA
• Revenue FY 2020 of EUR 30 Mio. @ 1% EBITDA (Corona impact
• ~ 300 FTE covering Germany (+ Austria and Switzerland)
• > 2#,500 active customers, > 500,000 devices under maintenance

TRANSACTION RATIONALE

• With CITYCOMP, S&T becomes nationwide services provider in Germany
• Low valuation due to Q2 Covid-19 impact compared to historic performance (> 10% CAGR, ~ 10% EBITDA Margin)
• High synergies with S&T in existing cusomer base and by near-shoring potential with S&T EE presence

TRANSACTION STRUCTURE

• Acquisition of 55.5% for a fixed price of EUR 6 Mio. at Closing
• Call/Put Options with remaining shareholders (active management) until 2023
• Signing July 1st 2020 subject to merger control clearance
• Closing expected in Q3 2020

CITYCOMP RESULTS

	2019	2020	2021	2022
Revenues (in EUR Mio.)	38.5	30	35.9	39.2
EBITDA (in EUR Mio.)	3.5	0.6	2.7	4.3
EBITDA Marge (in %)	9.1	2.0	7.5	11.0

With CITYCOMP, S&T achieves nationwide network in Germany | Due to temporary Corona impact and high synergies cons

21

THE S&T SHARE

TECDAX® & SDAX® MEMBER; TARGET: MDAX®

SHAREHOLDER STRUCTURE

Ennoconn Corporation - 26.6%

Allianz Global Investors GmbH - 5.0%

Freefloat - 68.4% - includes as follows:

BNP Paribas Asset Management - 4.6%

Ninety One SA (Pty) Ltd - 4.0%

S&T Management - 2.0%

S&T SHARE: A TECDAX® & SDAX® MEMBER

1800			30.00
1600
25.00
1400
1200			20.00
1000
15.00
800
600			10.00
400
5.00
200
0			0.00

S&T AG		TecDAX Index		SDAX		S&T AG EUR

COVERAGE	One new analysts will take on coverage of S&T AG
Commerzbank	| Buy: EUR 31.00	Pareto Securities	| Buy: EUR 33.00
Hauck & Aufhäuser	| Buy: EUR 33.00	Warburg Research	| Buy: EUR 27.50
Kepler Cheuvreux	| Buy: EUR 28.00	Raiffeisen Centrobank	| Hold: EUR 22.00
Jefferies	| Buy: EUR 32.00

SHARE LIQUIDITY
1,000,000,000
0
2012	2013	2014	2015	2016	2017	2018	2019

Share Buyback Program I 2020 completed: purchase of 390,373 shares with maximum an average price of EUR 16.74 per share

22

SUMMARY

ACHIEVEMENTS

• Revenue growth of 13.7% and EBITDA growth of 17.4%
• PEC Program is progressing well
• • Operating cash flow improvements continue
  • Finance cost further optimized
• 2 successful acquisitions completed
• • several M&A opportunities in the pipeline

RISKS

• Economic crisis due to Covid-19 crisis
• Big players enter our niches in Industry 4.0
• US-Dollardevelopment
• Address right technology trends

TARGETS

• Minimum Guidance for 2020:
• • Revenues: 1,150 Mio.
  • EBITDA: 115 Mio.
• 2 Bn. revenues at > 11% EBITDA in 2023
• Ongoing Working Capital improvement
• MDAX membership

OPPORTUNITIES

• PEC Program boosts cash flow and EBITDA conversion
• Sufficient cash to benefit from discounted M&A during and post-Corona
• Leading technologies in the growing IIoT market

23

APPENDIX

EXPERIENCED MANAGEMENT TEAM

EXECUTIVE

BOARD

HANNES
NIEDERHAUSER
	RICHARD		PETER STURZ		MICHAEL		CARLOS
CEO
	NEUWIRTH		COO		JESKE		QUEIROZ
		CFO		Services EE		COO		COO
						Services DACH		IoT Europe

EXTENDED

MANAGEMENT

BOARD

Robert			Steve		Zeljko			Olga		Christoph
Courteau		Chen		Puljic		Sinenko		Neumann
EVP		EVP		EVP		EVP		VP
America		Asia		Communication		Smart Energy		Technology

MANAGEMENT

• Trainee program for interim management for M&A/restructuring/integration

Michael

Riegert

EVP

Transportation

Andy		Bernhard
Mason		Günthner
VP		VP
Avionics		Smart Factory

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APPENDIX

S&T KEY FIGURES

In Mio. EUR	2016	2017	2018	2019	6M 2019	6M 2020
Revenues	503.7	882.0	990.9	1,122.9	473.8	538.7
Gross Profit	168.9	315.0	346.5	407.5	174.5	211.6
Gross Margin	33.5%	35.7%	35.0%	36.3%	36.8%	39.3%
EBITDA	34.4	68.1	90.5	111.7	44.3	52.0
EBITDA Margin	6.8%	7.7%	9.1%	9.9%	9.4%	9.7%
EBIT before PPA amortization	28.2	47.9	67.3	70.1	25.8	29.4
Net Income after NCI	20.4	29.4	48.5	49.1	18.2	19.6
EBITDA Interest Coverage Ratio*	7.9	9.8	14.5	17.7	14.5	16.4
Net Cash **	32.0	101.8	52.7	29.5	-101.1	-5.7
Working Capital ***	119.2	121.5	156.4	153.9	221.3	168.9
Equity Ratio	36.0%	41.2%	43.3%	31.4%	31.8%	33.5%
Operating Cashflow	61.4	44.9	35.5	83.4	-11.7	27.2
Employees	3,786	3,849	4,248	4,934	4,770	4,936

* Definition EBITDA Interest Coverage Ratio: EBITDA divided by interest expenses (excl. interest expenses related to leasing liabilities according to IFRS 16)

** Definition Net Cash: Cash and cash equivalents less non-current and current financing liabilities (excl. liabilities from leasing according to IFRS 16)

*** Definition Working Capital: Inventories plus trade receivables less trade payables (excl. IFRS 15 contract assets and liabilities)

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APPENDIX

ESG IMPROVEMENTS - ACTION PLAN FOR 2020 AND BEYOND

TRANSPORT

Increase conversion of the fleet to e- and hybrid-vehicles, promotion of train travel, public transport ticket at various S&T locations

RENEWABLE ENERGY

Expansion of photovoltaic system under usage of S&T Smart Energy products

VIDEO & HOMEOFFICE

Further promotion of video- conferencing and home office work to further optimize travel impact

SUPERVISORY BOARD

Chairman of the Supervisory replaced by female successor in June 2020, also next proposal intended to be a female candidate

S&T TOP AND MIDDLE

MANAGEMENT

Increase share of women in S&T management positions from 18% up to 25 % until 12/2021 equaling the current gender distribution in S&T

MENTORING PROGRAM

New Mentoring Program from and for future female S&T leaders

AUDIT COMMITTEE

New composition of audit committee -> increase of audit committee independency

LONG TERM COMPENSATION

New long term Executive Remuneration/Compensation system

COMMUNICATION

Increase communication with "Kleinaktionären"

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DISCLAIMER

This document includes 'forward-looking statements'. Forward-looking statements are all statements, which do not describe facts of the past, but containing the words "believe", "estimate", "expect", "anticipate", "assume", "plan", "intend", "could", and words of similar meaning. These forward-looking statements are subject to inherent risks and uncertainties since they relate to future events and are based on current assumptions and estimates of S&T AG, which might not occur at all or occur not as assumed. They therefore do not constitute a guarantee for the occurrence of future results or performances of S&T AG. The actual financial position and the actual results of S&T AG, as well as the overall economic development and the regulatory environment may differ materially from the expectations, which are assumed explicitly or implicitly in the forward-looking statements and do not comply to them. Analysts and investors, and any other person or entity that may need to take decisions or prepare or release opinions about the shares / securities issued by S&T AG are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this document. Past performance cannot be relied upon as a guide to future performance.

Except as required by applicable law, S&T AG undertakes no obligation to revise these forward-looking statements to reflect events and circumstances after the date of this presentation, including, without limitation, changes in S&T's business or strategy or to reflect the occurrence of unanticipated events. The financial information and opinions contained in this document are unaudited and are subject to change without notice. This document contains summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by S&T AG. None of the Company, its subsidiaries or affiliates or by any of its officers, directors, employees, advisors, representatives or agents shall be liable whatsoever for any loss however arising, directly or indirectly, from any use of this document its content or otherwise arising in connection with this document.

This document or any of the information contained herein do not constitute, form part of or shall be construed as an offer or invitation to purchase, subscribe, sale or exchange, nor a request for an offer of purchase, subscription, sale or exchange of shares / securities of S&T AG, or any advice or recommendation with respect to such shares / securities. This document or a part of it shall not form the basis of or relied upon in connection with any contract or commitment whatsoever.

This document does not constitute an offer to purchase securities in the United States, Canada, Australia, South Africa and Japan. Securities, including the bond of S&T AG may not be sold or offered for sale within the United States or to or for the account of / in favor of US citizens (as defined in Regulation S under the U.S. Securities Act of 1933 in the current version (the "Securities Act") unless they are registered under the regulations of the Securities Act or unless they are subject to an exemption from registration. Neither S&T AG nor any other person intend to register the offer or a part thereof in the United States or to make a public offer of the securities in the United States.

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S&T AG

Industriezeile 35

A-4021 Linz

www.snt.at

IR Contact:

[e-mail]

[phone] - 1196

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