INDUS drives portfolio optimization forward:
First measures within the PARKOUR strategy completed

Bergisch Gladbach, 30 July 2020 - As already announced on 7 July, INDUS Holding AG has adopted a set of measures to optimize its portfolio. By eliminating weak results as well as restructuring costs, the company aims to sustainably improve its EBIT margin.

As part of the implementation of this set of measures, a contract was signed on 24 July 2020 under which KIEBACK GmbH & Co. KG, an Osnabrück-based subsidiary from the Automotive Technology segment, will be sold to the Managing Director. The parties agreed not to disclose the details of the contract. "It is always the first intention to find good solutions for companies in difficult situations. This is what we have achieved for KIEBACK," says Dr. Johannes Schmidt, Chairman of the Board of Management of the INDUS Group.

In the context of the PARKOUR strategy program, INDUS is examining the possibility to sell individual companies. "In doing so, we are guided by the question of whether, in individual cases, a company and its employees have better long-term development opportunities under another owner," says Dr. Johannes Schmidt. "Especially in times like these, there are prospective buyers who are looking for additions to their business models." To make such companies saleable, considerable restructuring efforts are being made. Premises are relocated, innovations promoted and new orders generated. In February of this year, SIMON Kinetics, a business unit of INDUS subsidiary SIMON Group, which manufactures furniture fittings and damping systems, was successfully sold to the British Titus Group. Promising negotiations for the sale of a sub-subsidiary from the Automotive Technology segment are nearing completion.

Operations for which restructuring efforts fail to produce the hoped-for results even after an extended period of time are closed down after careful consideration. In its 2019 annual report, INDUS already reported on the closure of SIMON's plastics electroplating unit. The EU-wide ban on chromium IV oxide would have made the continuation of this company from the Metals Technology segment unprofitable. At the end of June, INDUS decided and initiated the shutdown of a sub-subsidiary from the Automotive Technology segment. The holding company is also examining the potential shutdown of BACHER AG from the Metals Technology segment in 2021. The employees were informed accordingly on 15 July 2020. The consultation procedure that is mandatory in Switzerland has been opened.

"Following the completion of the sales and closures described above, sales in the mid double-digit million range will be lost on an annual basis. Therefore, the EBIT margin is expected to improve by a good percentage point," emphasizes Dr. Johannes Schmidt. "Divestments are not a strategic element of our business model. Our actions continue to be guided by the principle of 'buy, hold and develop'. In isolated cases it may be necessary, however, to divest a company. This gives us the strength and the capacity to devote more attention to the acquisition of high-margin hidden champions in industries of the future. Going forward, larger acquisitions may also be possible."

About INDUS Holding AG:

Established in 1989 and headquartered in Bergisch-Gladbach, INDUS Holding AG is an SME holding company which concentrates on the long-term development of its portfolio companies. The industry focus is on construction and infrastructure, automotive technology, mechanical and plant engineering, medical engineering / life sciences as well as metals technology. As a leading specialist for sustainable corporate development, INDUS attaches great importance to the operational autonomy of its 46 portfolio companies. Since 1995, INDUS Holding AG has been listed in the Prime Standard of the Frankfurt Stock Exchange (DE0006200108); in 2019, the Group generated revenues of around EUR 1.74 billion. For more information on INDUS, visit www.indus.de.

Contact:

Jana Külschbach & Dafne Sanac
Public & Investor Relations
INDUS Holding AG
Kölner Straße 32
51429 Bergisch Gladbach
Germany

Tel +49 (0) 022 04 / 40 00-35
Tel +49 (0) 022 04 / 40 00-32
E-mail [email protected]
E-mail [email protected]
www.indus.de