Interroll Group
H1/2020 Analyst Webcast
Heinz Hössli, Group CFO

Martin Regnet, Global PR Manager

Interroll Holding AGInterroll Holding AG

interroll.com

AgendaWelcome
Brief Introduction Heinz Hössli

Group Overview
Financial Highlights H1/2020
Q&A2

Introduction Heinz Hössli (Group CFO)
Born 1969, Swiss
Certified Public Accountant (CPA) from EXPERTsuisse, Zurich, CH
Holds a Global Executive MBA from Duke’s Fuqua School of Business
in Durham (USA) with recognition as a Fuqua Scholar.
Previous roles: CFO/VP Advanced Materials (2012 to Mar 2020) at
Bühler Group as well as VP Finance & Controlling Advanced Materials
and CFO of the Business Area Die Casting (2009 to 2011).
2002 to 2009: various leadership roles as CFO of Bühler subsidiaries
in the US and Mexico.
Heinz Hössli worked as Auditor for Ernst & Young and other smaller
advisory service firms, before joining Bühler in 1999 as Internal Group
Auditor.
3

Group Overview
Martin Regnet, Global PR Manager

Interroll Holding AG

interroll.com

Interroll
Leading global provider for material handling solutions••••

Americas

EMEA

Asia Pacific

27%

57%

16%

of Global Sales”

of Global Sales*of Global Sales*••••

2,400 employees
34 companies
16 main factories
Headquarters inSwitzerland
28,000 customers
Founded in 1959
CHF 559.7 Mio.
in Net Sales*
10.0% Net IncomeMargin*2019 figures

Internal Logistics Solutions are part ofMaterial Handling Equipment Manufacturing
Material Handling Equipment Manufacturing (MHEM) Market> CHF 150 billion (2020), growing at a CAGR of 4-7% (2020-2025)

Internal Logistics Solutions are a part of the MHEM Market.
Relevant market for Interroll products: CHF 5-7 billion worldwide.
Interroll market share: 8-11% worldwide.
4Our key products
2019Product,ServiceRollers
19.7% of group revenues

Drives
30.8% of group revenues

Conveyors & Sorters
39.9% of group revenues

Pallet Handling
9.6% of group revenues

Rollers are the non-driven,
moving parts of conveyor
systems. They are Interroll´soriginalbusiness,havingmanufactured more than 500m
and currently selling over 60kvariations.

Drives are responsible forcreating and controlling themovement of the conveyor
belts. They include driven
conveyor rollers, drum motors
and control units.

Conveyor modules are tracks
made of rollers (for pallets) orbelts (for boxes), which run
through the warehouse or
factory and allow items (eithergoods or materials) to betransported.

Solutions for dynamic storage,
which use gravity to moveitems to the right place for easystorage and removal. Solutions
can operate both on a LIFO or
FIFO principle.

Distribution centres, CEP,
e-commerce, industrial

Airports, food processing,supermarkets, retail, auto

Distribution centres, CEP,
e-commerce, airport

Product
exampleKey endmarkets

Distribution centres, productionlines, box/canister handling,
auto

Clients
example5Our business modelInterroll as enablerMarket•Market environment: increasinglydynamic•

Material handling market attractive for
new entrants, consolidation

Interroll•

Platform products for globallyconsistent / tested solutions•Proximity to customers: own networkin key markets and industries•

Technology partner for global
integrators and local players

Our growth strategy
Solutions, Markets, Service

GeographicExpansion
Innovative products
Service business

Regional presence

Innovations
--

EMEA

Americas

Asia Pacific-

Sorters & Conveyors:
Strong growth-High potential-

Localization
Value creation-"Cell division": CoE*Sorter / CoE Conveyors

USA: Sales
territories divided
into 4 regions-

New factory inThailand (Sep19)-

New plant in South
Germany (Q2/ 21)

DC Platform (Feb 19)
Modular Pallet Conveyor Platform (MPP)(Feb 19) plus Stacker Crane / Transfer
Car extensions (Nov 19)

ServiceHigh Performance Crossbelt Sorter (Feb20)-

New Atlanta plant
fully operational(Jul 20)--

Installed base greatly
expanded (>400 sorters)-

Further expansion of theservice organization-

New business models
under development

New factory inChina (Mar 22)
9*CoE= Center of ExcellenceSmart Pallet Handling Solutions
Overview• Interroll offers a comprehensive, set ofmodular pallet handling solutions:• MPP – The Modular Pallet Conveyor
Platform• Stacker Crane & Transfer Car• Pallet Flow

• Combined they constitute the ultimate
high-quality solution for the entire flowof pallets throughout manufacturing plants
and distribution centers.

Smart Pallet Handling Solutions
Benefits At A GlanceInterroll Sorter
More than 400 installations worldwide
More than 400 sorters installed worldwide
20 years of experience as a neutral partnerfor sorters
Well-known customers from CEP, fashion, ecommerce and other industries
Proven mechanical design, reliable accurate
discharge
Interroll has entered a new market segmentwith the High-Performance Crossbelt Sorter!
12

Innovation in practiceInterroll High Performance Crossbelt Sorter (HPCS)

Relevant markets:• CEP*• Distribution

Relevant markets:• E-Commerce• Fashion• Distribution

Relevant markets:• Fashion & textile
industry• Distribution* Courier, Express, Parcel

NEW: MX025H
High Performance
Crossbelt Sorter

High-performance segment

PROVEN:ST6160/ST 6130
Horizontal/VerticalCrossbelt Sorter

Middle segment

New sorter solutions
planned for Q1/21

Basicsegment13Organizational structureMembers of Group Management

Paul Zumbühl

Heinz Hössli

Maurizio Catino

Jens Strüwing

Chief Executive Officer

Chief Financial Officer

Executive Vice President
Head of Global Sales & Service

Executive Vice President
Head of Products & Technology

Jens Karolyi
Senior Vice President
Corporate Marketing & Culture

Dr. Ben Xia

Richard Keely

Executive Vice President
Head of Operations Asia

Executive Vice President
Head of Operations Americas

Financial Highlights H1/2020
Heinz Hössli, Group CFO

Interroll Holding AGinterroll.com

Performance summary H1/2020-11.9% order intake decline (previous year: -7.9%)
Local currency: -6.1%
All regions show a decline in order intake-10.6% sales decline (previous year: +8.4%)
Local currency: -4.8%
EMEA and Americas show a decline in sales but Asia-Pacific is growing+3.5% EBIT growth to CHF 32.3m (previous year: CHF 31.2m)
High cost discipline underlined+12.5% operating cash flow: CHF 45.6m (previous year: CHF 40.6m)
19.6% from sales (PY: 15.6%)
16Order intake: CHF 263.4m (-11.9%)
Local currency: -6.1%
In CHF million
3503002720250Drives: -10.5%

128

200

Rollers: -5.9%

112

Conveyors & Sorters: -12.4%

150
100

87

77

Pallet Handling: -24.9%

57

54

Book-to-bill Ratio: 1.13 (PY: 1.15)

1906

2006

50
01606
Rollers1706
Drives

1806
Conveyors/Sorters

Pallet Handling17

Sales: CHF 233.2m (-10.6%)
Local currency: -4.8%
In CHF million
300

250

28

200

21

Rollers: -10.6%

81

Drives: -12.3%

84

150

Conveyors & Sorters: -3.5%
90

100

79

Pallet Handling: -26.6%

505953

1906

2006

Book-to-bill Ratio: 1.13 (PY: 1.15)

01606
Rollers

1706Drives

1806
Conveyors/Sorters

Pallet Handling18

Sales by region: CHF 233.2m (-10.6%)
Local currency: -4.8%
In CHF million

EMEA

AMERICAS

ASIA

300

Sales development:- EMEA: -10.1%- Americas: -18.8%- Asia-Pacific: +10.7%

150

Sales by region:- EMEA: 60% (PY: 60%)
- Americas: 27% (PY: 30%)
- Asia-Pacific: 13% (PY: 10%)

01606

1706

1806

1906

2006
19

EBIT: CHF 32.3m (+3.5%)
In CHF million
EBIT

Favorable margin from product mix

in % of sales

3516%

3031.232.3

2514%

High cost and investment discipline

12%

EBITDA CHF 43.5m (+0.1%)

10%

In % of sales 18.7% (PY: 16.7%)

208%

15Depreciation almost unchanged

6%
104%

50160617061806

1906

2006

Amortization lower

2%

EBIT CHF 32.3m (+3.5%)

0%

In% of sales 13.8% (PY: 11.9%)20

Result: CHF 23.8m (+3.1%)
In CHF million
Resultin % of sales

2512%

23.1

10%

Negative financing result from FX
currency loss

8%

Lower tax rate

23.8

20

156%

Result CHF 23.8m (+3.1%)

4%

In % of sales 10.2% (PY: 8.8%)

1052%00%160617061806

1906

2006
21

Operating cash flow: CHF 45.6m(+12.5%)
In CHF million
Operational cash flowin % of sales

5025%

4545.6

4020%

40.6

3530

Operating cash flow CHF 45.6m(+12.5%)10%

In % of sales: 19.6% (PY: 15.6%)

15

10

Less income tax paid

15%

2520

Lower NWC (inventories/WIP and tradereceivables)

5%

Investments CHF 26.0m (PY: CHF 11.7m)

Free cash flow CHF 20.0m (-31.6%)

500%
1606

1706

18061906

2006

In % of sales: 8.6% (PY: 11.2%)
22

Value creation:
ROE 15.8% and RONA 19.5%
ROE vs. WACC of 9%
30%

20%

10%0%

2009
4.3%

ROE
RONA 1.6%
WACC 9.0%

2010 2011 2012 2013
11.1% 13.4% 12.8% 11.9%

2014
9.9%

2015 2016 2017 2018 2019 H1/20
14.4% 16.4% 15.8% 19.0% 19.0% 15.8%

10.4%

9.9%

12.6% 12.2%

9.8%

15.3% 17.1% 16.5% 20.9% 22.6% 19.5%

9.0%

9.0%

9.0%

9.0%

9.0%

9.0%

9.0%

9.0%

9.0%

9.0%

9.0%
23

Profitable growth –now and in the futureInterroll is cautiously optimistic on accelerating business dynamics in
H2/2020 (compared to H1/2020).

Based on its strong market position, its innovative products, available
capacities for growth and the fast growing end markets served (ECommerce, CEP, Food & Beverage, Distribution & Industry), Interroll
sees significant long-term potential.

Click into the respective picture to start any of these videos
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Half-year report 2020

https://www.interroll.com/investorrelations/reports-and-publications

25

Thank you for your attention!
Do you have any questions?

Contact details

Interroll Holding AG
Via Gorelle 36592 Sant’Antonino
Switzerland

Heinz Hössli
Chief Financial Officerh.hoessli@interroll.com
Phone +41 91 850 25 44

Martin Regnet
Global PR Managerm.regnet@interroll.com
Phone +41 91 850 25 2127

Disclaimer
This presentation contains certain future-oriented statements. Future-oriented statements include all statements
which do not relate to historical facts and events and contain future-oriented expressions such as “believe”,“estimate”, “assume”, “expect”, “forecast”, “intend”, “could” or “should” or expressions of a similar kind. Such futureoriented statements are subject to risks and uncertainties since they relate to future events and are based on thecompany’s current assumptions, which may not in the future take place or be fulfilled as expected.

Even if the actual results for Interroll Holding AG, including its financial position and profitability and the economic
and regulatory fundamentals, are in accordance with such future-oriented statements in this presentation, noguarantee can be given that this will continue to be the case in the future as development in the economic andregulatory frameworks my vary substantially from those explicitly or implicitly assumed or described in thispresentation.

28BACKUP29

Interroll – Customer – End User Relationship

Delivery ofoverall systems

Delivery ofproducts forinternal logistics

ORIGINAL EQUIPMENTMANUFACTURER/
SYSTEM INTEGRATORINTERROLL

Orders forInterroll

Product competitors

END USER

Orders for Original Equipment
Manufacturer (OEM) / System integrator

OEMs/System Integrators

End Users

30

Competitors overview

Direct competition

Explanation

Our opportunity

Majority local, few global competitors
for individual Interroll products

Extend market share
due tohigher technology,
quality andglobal availability

No competitors (local and/or global)
for the complete Interroll productportfolio

Indirect competition

Other technologies/products are usedfor same application(e.g. Gear Motor, 400V, etc.)

Substitute «old» and energy
consuming technology
by Interroll products(e.g. Drum Motor, 24V, etc.)

In-house competition
by System
Integrators
and OEMs

System Integrators and OEMs
still produce some products in-house(no core activity for them)Outsourcing to Interroll
due to lower cost, higher quality andinnovation(our core competence and economyof scales)References (a selection)
These end users trust Interroll’s solutions

32

References
Partners (a selection)

33Responsible corporate governancestrengthened• Interroll reaffirms its commitment to responsible corporate governance with progress
reports at the end of February each year to the UN Global Compact.
•Successes were achieved in the rollout of a code of conduct for suppliers and in further
and more in-depth compliance training.

• By extending the Compliance Management System (CMS) throughout the Group,
Interroll intends to strengthen its competitiveness in the long term.

34

Digitalization at Interroll
Triple benefit: Production, product and process
Digitalization of theProduction•Digitization Product Lifecycle
Management•IPS: Interroll Production System as
digital production system•

man-machine networking•

paperless production

Productivity

Customer benefits

Production

Delivery times•

Example EC 5000:Big Data•

MultiControl:
M2M-compatiblecontrol system•sorter control•

Product identification

ProductsSystem
ArchitectureInternal

Digitalization of theproducts

ExternalProcesses

Quality

Digitalization of the processes•

CAD Layouter Tool: Upgrades and integration of simulation ••Variant configuration•Globally networked planning•customer relationship management•Automation of order processing and production

SAP as a global standard35