Analyst Conference March 19 2021
ANNUAL REPORT 2020
Paul Zumbühl
CEO Interroll Worldwide Group
interroll.com

Agenda1.

Overview

Paul Zumbühl, CEO

2.

Technology Platform & Expansion:
Foundation for growthJens Strüwing, Executive Vice President
Products & Technology

3.

Customer Comfort & Confidence

Jens Karolyi, Senior Vice President
Corporate Marketing & People Development

4.

Results 2020

Heinz Hössli, CFO

5.

Summary and Outlook

Paul Zumbühl, CEO

2

Highlights 2020
Results, innovation, growth, platform strategy

RECORD RESULTS 2020

STRONG INNOVATIONPIPELINE 2021-2025

CAPACITIES FOR GROWTH
2021-2023 ESTABLISHED

MATERIAL HANDLING
PLATFORMS•

EBIT: CHF 94.1m (+30.1%)•Split-Tray Sorter•

Mosbach, Germany•

Deepening of technology platform•

Result: CHF 71.7m (+28.0%)•Smart Pallet Mover (SPM)•Order Intake: +0.3%/+6.6% in LC•

Digitalization••

Suzhou, China
Investments in productivity
across locations••

More end user processes coveredInterroll as single source
accelerates projects3

We passed the acid test!
Homework during good times paid offCulture•Long-term DNA•

Outstanding commitment•

Climate of ExcellenceInnovation•

Unique selling propositions•

Highly flexible platform solutions•

Saving time as added value

Business Excellence•Regular «Health Checks» -> Competitiveness•Continuous productivity improvement•

High-performance global SAP System4

Our Growth Strategy
Three Pillars: Products, Markets, Service
Service Business

Geographical Expansion
InnovativeProducts

ServiceRegional Presence

Innovations•••

High-Performance Crossbelt Sorter(HPCS) (Global Launch Q1/20)
Stacker Crane / Transfer Car
extensions for MPP* (Rollout 20)

EMEA

Americas

Asia Pacific•••

New Factory inChina (Q2/22)•Expansion Vietnam& Philippines•High Potential
Australia & NZ••

New Plant South
Germany (Q3/21)“Cell Split”: CoE** Sor•
ter / CoE Conveyors

New Plant inAtlanta (Q2/20)

Plant digitalization•Smart Pallet Mover (SPM):
EU-Launch Q2/21)*Modular Pallet Conveyor Platform

E-Commerce
accelerated by
COVID-19

Upgrade Local
Assembly Brazil•

New Setup ServiceOrganization (Q3/21)•

Attractive Retrofit
opportunities (>400 Sorter)•New Service Packages
enabled by digitalization

5*CoE= Center of ExcellenceNext strategic phase 2021-2030[strategic achievements/market power]

Phase 3Phase 2Phase 1• Modularity / digitalisation• Industry solutions• Platform-concept• Business excellence• Global footprint• Restructuring• End-user approach• Re-positioning• Divestments / acquisitions
2000

2010

[time]

2020

2030
6

From Solution Provider
to Thought Leader
Enabler

Authority in the market

ProvenSetting industry
standards

Leading platform
providerLong-term perspective

TODAY

TOMORROW

Customer Comfort

Customer Confidence•Technology platform with the rightbenefits for current needs•

Partner with longterm perspective (futurecustomer needs)•Quality, Speed, Easiness•State-of-the-art innovation•

New Service Packages•

Sound business model & financial solidity
7

Customer Confidence8HR Program
From “Culture for Growth” to “People Development”• Interroll needs talents for further growth (passionate & skilled)• Talents are a limited resource in our industry-> Focused recruiting and development
RecruitingDevelopment••

Interroll Academy•

Talent Management•

Succession Plans•

Modular Learning paths•

Regular Assessments•••

Cooperation with universities(e.g. Fontys Venlo, DHBW Mosbach)

Hunting talents beyond our own industry
Mix of direct and online recruiting
Location marketing

9Technology Platform & Expansion:
Foundation for growthJens Strüwing
Executive Vice President Products & Technology
interroll.com

Products & Technology
Overview
Capacity

New products and strong
focus on growth resulting inincreasing capacity in all
regions.

Interroll Lifetime Service

Innovation

Focus on offering added value
to the Interroll customer base.

Independent Service organization
to be established.
•••

Increased global installed base
Full dedication
Leverage and scale effects

Capacities for sustainable growth
Global Expansion

EMEA

Asia PacificAmericas•••High potential for sorter projects•

New Factory in Hiram, Atlanta,USA (Q2/20)•

Additional investments inautomation (incl. robots)•New Plant Mosbach (CoE*Conveyors & PalletHandling) (Invest. > 45m
EUR
New CoE* Software &Electronics as per Jan 1,2021 in Linz (Austria)••

New Factory in Suzhou (Startof production: Q3/22)
Additional Capacity for
Shenzhen, China (in Q1/20)
Strong Potential in China andSouth-East Asia

12*Center of Excellence«Cell Split» July 2021…..reducing complexity & adding capacity to increase flexibility

CoE*Conveyor &Sorter
Sinsheim

CoE*Sorters,Sinsheim*Center of Excellence••

Full focus on sorters
Additional capacities
for growth

CoE* Pallet
Handling
Kronau••Full focus on Conveyors& Pallet Handling
Additional capacities forgrowth

CoE*
Conveyor& PalletHandling
MosbachInnovation in PracticeHigh Performance Crossbelt Sorter (HPCS) and Split Tray Sorter

Most relevant markets:• CEP*• Distribution* Courier, Express, Parcel

Most relevant markets• E-Commerce• Fashion• Distribution

Most relevant markets:• Fashion & Textile• Distribution

Since 2020MX025H
High Performance
Crossbelt Sorter

High-Performance
Segment

PROVENST6160/ST 6130
Horizontal/Vertical
Crossbelt Sorter

Middle Segment

NEW ‘21
Split Tray Sorter

Basicsegment
14

Innovation in PracticePallet Handling

Smart Pallet Mover (SPM)

Modular Pallet Conveyor
Platform (MPP)

Dynamic Storage

The new Interroll solution to organize
and automate the flow of pallets inmanufacturing plants.

A combination of intelligent roller
conveyors, chain conveyors andspecial modules.

Storage systems based on gravity lanes
with an incline.

••••••••High ROI

Real Plug & Play
True Industry 4.0 capabilities
Market Launch Q2/21

Platform-based
Space & energy-saving
Easy to integrate••••Up to 50% space saving
Highly energy-saving
Suitable for fast-moving products
Automation capabilities

ZPA* is a Unique Selling Point*Zero Pressure Accumulation

15

Innovation in Practice
Smart Pallet Mover

16

Global Lifetime Service
Next Steps
Short-Term•

Separate service organization in Europe(July 21) and global rollout starting in 2022•

Short-term: expansion of spare parts
business in 2021 (Refurbishment andLogistics)•Short & medium-term: offering Maintenanceand Installation Services to global customers•

Longer-term future: Supporting System
Integrators in offering Consulting Support andTraining Courses

Short-Term/Mid-TermFuture*- Ramp up / Operation
support* Service Level Agreement

17Customer Comfort &Confidence
Jens Karolyi
Senior Vice President Corporate Marketing & People Development
interroll.com

Product Groups
Overview on the business in Financial Year 2020
Rollers:
Net Sales: CHF 106.0 Mio. (-3.8% vs. LY)
Order Intake: CHF 107.5 Mio. (-0.3% vs. LY)• Availability was crucial during pandemic• Very short delivery times basis of success

Drives & Controls:
Net Sales: CHF 156.5 Mio. (-9.2% vs. LY)
Order Intake: CHF 157.6 Mio. (-6.9% vs. LY)• Gaining market share through leading 24V/48V-technology• Drum motor business affected by missing Airport business19

Product Groups
Overview on the business in Financial Year 2020

Conveyors & Sorters:
Net Sales 2020: CHF 221.5 Mio. (-0.7% vs. LY)
Order Intake 2020: CHF 233.2 Mio. (+8.5% vs. LY)• E-Commerce and CEP markets are developing positively• Very strong order intake

Pallet Handling:
Net Sales: CHF 46.6 Mio. (-13.7% vs. LY)
Order Intake: CHF 49.5 Mio. (-9.2% vs. LY)• Promising potential of Modular Pallet Conveyor Platform• High number of Pallet Handling projects on hold in 2020 (pandemic)
20

Customer Comfort
Saving time through the right digital setup

ProductInformation
CloudProductServiceCloud•••Customer
Applications
Cloud

Layouting& Config.
Tools

Interroll Digital Eco System„Headless“ network
All our competences together on
the spot
Goal: best-in-class customer
experience

SoftwareService
CloudSAP
Commerce
Cloud21

Customer ConfidenceInterroll as partner of trustStrategic Partner Focus

Partnership Network••

More than 100 selected partners•

Solution Sales Organization:
Customer Relation at Eye-Level•

Global Account Contracts•

Net Promoter Score (NPS)•The right know-how: Narrative
Interviews & Studies••

Sales Team Skills &Customer Trainings•“License to Sell” Concept

Competence and insights
exchange•

New Program: Customer
Training Events

Key supplier of platform
solutions•

E-Learning Apps

Field Service Partnerships•

Fraunhofer Process Training
22Video Ulla Popken
Customer Confidence. End User Confidence. Consumer Confidence.

RESULTS 2020

Heinz Hössli
CFO

Order intake: CHF 547.8m (+0.3%)
In local currency: +6.6%
In CHF million
600
5550215

233

Rollers: -0.3%
Drives: -6.9%

300

169

158

1081081912

2012

Conveyors & Sorters: +8.5%

Pallet Handling: -9.2%
01612

1712

1812

Rollers

Drive sConveyors/Sorters

Pallet HandlingBook-to-bill Ratio: 1.03 (PY: 0.98)

25

Sales by region: CHF 530.6m (-5.2%)
In local currency: +0.9%
In CHF million

600

Sales development:- EMEA: -10.6%- Americas: +6.1%- Asia-Pacific: -4.6%300

Sales by region:- EMEA: 54% (PY: 57%)
01612

1712

1812

EMEA

AMERICAS

1912

ASIA

2012

- Americas: 30% (PY: 27%)
- Asia-Pacific: 16% (PY: 16%)
26

EBIT: CHF 94.1m (+30.1%)
In CHF million

10020%

Favorable margin from product mix

94.1
15%
72.3

High cost discipline

EBITDA CHF 115.4m (+20.1%)

50

10%

5%

In % of sales 21.7% (PY: 17.1%)
Depreciation almost unchanged
Amortization lower

00%
1612

1712
EBIT

1812

1912

2012

in % of sales

EBIT CHF 94.1m (+30.1%)
In % of sales 17.7% (PY: 12.9%)
27Result: CHF 71.7m (+28.0%)
In CHF million

8015%
71.7

60

56.0

10%

Negative financing result from FX
currency loss

5%

Slightly higher tax rate

4020Result CHF 71.7m (+28.0%)
00%
1612

1712

1812

Net Profit1912

In % of sales 13.5% (PY: 10.0%)

2012

in % of sales
28Operating cash flow: CHF 122.9m(+23.4%)
In CHF million

25%
122.9

10020%

99.6
15%500171218121912

2012

Operational Cash Flowin % of sales 14.1%

Less income tax

10%

Operating cash flow CHF 122.9m (+23.4%)

5%In % of sales: 23.2% (PY: 17.8%)

0%

1612

Lower NWC (very high advance paymentsfrom customer)

Investments CHF 51.3m (PY: CHF 33.6m)

Free cash flow CHF 74.0m (+10.6%)
In % of sales: 13.9% (PY: 12.0%)29

Value creation:
ROE 23.3% and RONA 30.4%
ROE & RONA vs. WACC of 9%
30%
20%
10%

0%

2009
4.3%

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

2014
9.9%

2015 2016 2017 2018 2019 2020.0
14.4% 16.4% 15.8% 19.0% 19.0% 23.3%

1.6%

10.4%

9.9%

12.6% 12.2%

9.8%

15.3% 17.1% 16.5% 20.9% 22.6% 30.4%

WACC 9.0%

9.0%

9.0%

9.0%

9.0%

9.0%

9.0%

ROERONA

9.0%

9.0%

9.0%

9.0%

9.0%
30

Strengthening Commitment toCorporate Responsibility•

Long-term commitment to Environmental, Social, Governance standards (ESG)•Swiss Stock Exchange SIX selected Interroll to be part of theSPI ESG & SPI ESG Weighted indexes, which went live in Feb 2021•

A full ESG Report is to be published on FY 2022 (digital, currently preparingroadmap)•Sustainability report 2020 reflects now also Sustainable Development Goals(SDGs) as intermediary step, besides «Report on progress» for Global Compact•

The further development of the Compliance Management System (CMS) in theentire group ensures Interroll‘s long-term competitiveness31

Upcoming General Assembly
Proposals of the Board of Directors
The Annual General Assembly on May 7, 2021
will receive the following proposals:In CHF
100▪ A dividend of CHF 27.00 per share (+20.0%)(PY: CHF 22.50)

86.0

66.7

▪ The payout ratio reaches 31.4% (PY: 33.7%)

61.350▪ Board of Directors (Proposal):

46.0
42.6

▪ Election of Paul Zumbühl as Chairman*▪ Election of Susanne Schreiber* Paul Zumbühl acting as active Chairman andUrs Tanner acting as Lead Independent Director

27.0
22.0
16.0

22.5

16.50
2016

2017

Payout per share

2018

2019

2020

Earnings per average share outstanding

32

Dividend Development
Period from FY 2000-2020

30.00

Dividend(CHF/share)

25.00
20.00
15.00
10.00
5.00
0.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Year2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Dividend
2.50 2.50 2.50
(CHF/share)

2.50 4.00 6.00 7.00 10.50 5.00 5.00 5.00 7.00 8.00 8.80 9.00 12.00 16.00 16.50 22.00 22.50 27.00

SUMMARY & OUTLOOKPaul Zumbühl
CEO Interroll Worldwide Group
interroll.com

Outlook 2021
Shaping the evolution of material handlingThought Leadership: Shaping the evolution of material handling together with users.
New opportunities in food and e-commerce.
Innovation & Service: Deepening of our technology platform and decentralized
intelligence, expanding local service.
Long-term capacity expansion: New plants in Germany (2021) and China (2022).
Investments in digitalization across our production network and service infrastructure.

Investments in employees and qualification.
Outlook 2021: - Order intake/sales: cautiously optimistic- Innovation and efficiency programs continue at full speed

35

Our future CEO:Ingo Steinkrüger•

Previously Chief Executive Officer at thyssenkrupp System
Engineering (since 2016)•Starts as Chief Executive Officer of Interroll Holding on May 1, 2021•

Strategic focus on digitalization and technology platforms as well as
customers and business development•

More than 20 years in Mechanical Engineering and System
Engineering with strong track record in the Automotive Industry•German, 48 years old, married, two children

36Ensuring strategic continuity
Annual General Meeting (AGM) 2021 to AGM 2023

Chairman of the Board of Directors (BoD)
additional function for two terms of officeas Active Chairman (AGM 2021 to AGM 2023).

Lead Independent Director
function for two terms of office(AGM 2021 to AGM 2023).

TasksTasks• Chairing the AGM and external representation• Leading the BoD• Preparation and supervision of the execution of BoD
resolutions• Audit as well as strategic support with focus on:• Ensure strict compliance with the corporate governanceguidelines.

• Represent the active Chairman of the Board of Directors
in the event of any conflicts of interest.

1. long-term projects; strategic focus on digitalization,innovation,marketing & sales and expansion.
2. projects in the area of mergers & acquisitions
3. investor relations

37

Questions

interroll.com