Nedap Investor Presentation April 2020
Disclaimer • Any forward-looking statements in this presentation refer to future events and may be expressed in a variety of ways, such as “expects”, “projects”, “anticipates”, “intends” or other similar words (“Forward - looking statements”). Nedap N.V. (“Nedap”) has based these forward -looking statements on its current expectations and projections about future events. Nedap’s expectations and projections may change and Nedap’s actual results, performance or achievements could differ significantly from the results expressed in, or implied by, these forward-looking statements, due to possible risks and uncertainties and other important factors which are neither manageable nor foreseeable by Nedap and some of which are beyond Nedap’s control. • In view of these uncertainties, no certainty can be given about Nedap’s future results or financial position. We advise you to treat Nedap’s forward-looking statements with caution, as they speak only as of the date on which the statements are made. Nedap is under no obligation to update or revise publicly any forward- looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable (securities) legislation. • Nedap N.V. (“Nedap”) www.neda dap. p.com 2
Contents Nedap at a Glance Nedap Investment Proposition Key Financials 05 Key Facts 14 Investment Proposition 24 Key Financials 06 Management 15 Financial Track Record Outlook Strategy 16 Financial Targets 26 Trading Update Q1 2020 08 Technology for Life 17 Nedap Share 27 Highlights of 2019 Business Cases Appendix 09 Strategic Framework 10 Strategic Intent 19 !D Cloud 30 5-Year Financial History 11 Value Creation Model 20 AEOS 31 Overview Business Units 12 Overview Business Units 21 CowControl ™ 32 Consolidated Income Statement 22 Ons Softwareplatform 33 Consolidated Balance Sheet 3
Nedap at a Glance 4
Key Facts Revenue (2019) €1 91.5 million Founded in Listed since High-tech Creating 1929 1947 company hardware & software Market Cap (31/12/2019) € 325 million 750 employees 4 core Leading technologies positions in 7 Operating Profit selected niche (2019) markets € 17.5 million Headquarters in Groenlo, ROIC The Netherlands (2019) Attracting the Entrepreneurial, Offices in US, China, Hongkong, Dubai, 25% brightest minds innovative UK, Germany, Spain, Belgium and The Netherlands culture in our industry 5
Management Ruben n Wegman (1966, CEO) Joined Nedap in 1997, CEO since 2009 Nedap board member since 2002 − Several management positions at Nedap since 1997 − Started career at Shell − Graduated in Computer Sciences − Various executive programs, including INSEAD and IMD − Danië iëlle van der Sluijs (1972, CFO) Joined Nedap in 2020 Previously Group Finance Director at ForFarmers N.V. − Several financial positions at Numico, Crucell and the Port of Rotterdam − Authority Graduated in Business Administration, completed Executive Master of − Finance & Control at VU and completed New Board Program at Nijenrode Nedap intends to appoint Mrs. Daniëllevan der Sluijs as a statutory director − following the upcoming General meeting of shareholders 6
Strategy 7
Technology for Life • At Nedap, we focus on ‘Technology for Life’: technological solutions that enable people to work more pleasantly and successfully. • The starting point is always ‘first people, then technology’. What we develop and create must be of added value for people – with their individual talents, skills and ambitions • Our propositions are built by combining 4 core technologies and deep insights in 7 niche markets • Our ambition is creating winning platforms centered around our hard- and software capabilities, by: − building eco-systems with business and technology partners − nurturing an entrepreneurial culture − employing the brightest minds in our industry 8
Strategic Framework Building winning platforms Focus on 4 core Deep insights in 7 niche markets technologies 1.Healthcare 1.Connected devices 2.Identification Systems 2.Communications 3.Light Controls technology 4.Livestock Management 3.Software architecture 5.Retail 4.User Xperience 6.Security Management 7.Staffing Solutions Observe Scale Create 9
Strategic Intent Evolving from hardware manufacturer to provider of scalable and proprietary propositions High-end hardware Investments in scalable Increased focus Building winning platforms manufacturing and proprietary and restructuring company propositions • Increased investments • Outsourcing manufacturing • Entrepreneurial culture • Creating eco-systems • Reduction product portfolio >70% • Employee centric in product development • Market leadership in strategy • Exit non-core business (Nsecure) 7 attractive niche markets • Phase-out of main • Investments in • Phase-out less-value adding supplier activities • Focus on 4 core sales and marketing technologies businesses • Building an • International expansion -HID products international scalable -Energy Systems organisation <2009 2009 - 2013 2014 - 2017 >2018 Forging an international and scalable business partner network From hardware to software to platforms Driving high and growing added value per employee 10
Value Creation Model Capturing growth by the synergy of Nedap employees and culture Core elements competiveness Strategic principles People Long term perspective: urgent patience Culture Employees are key to oursucces Leadership Changing Gears Nedap employees Growth Portfolio added value distinctive per employee propositions Leading market positions Healthcare Identification Systems Light Controls Connected devices Livestock Mangement Communication technology Retail Software architecture Security Management User eXperience Staffing Solutions Core technologies Business Units 11
Overview Business Units Business units Size* Niche market Competitive position Typology Healthcare 10-20% Long term care providers -#1 in elderly care, #2 in disabled care Scale-up -New entrant in mental healthcare Start-up -New entrant in preventive care Start-up Identification Systems 10-20% Larger companies, financial -#1 in wireless parking sensors Start-up institutions and governments -Global leader in identification of vehicles Scale-up Light Controls 10-20% General industries, water -#1 in high-power UV power supplies Scale-up treatment companies and retail -Leading position in connected lighting Start-up Livestock Management >20% Management of cows and pigs -#1 in dairy farming sensors Scale-up -#1 in pig feeding farming systems Scale-up Retail >20% International fashion and food - Top-3 player in anti-shop lifting solutions Scale-up retailers - Leading position in shop based stock Start-up management Security Management 10-20% Larger companies, financial - Top-3 player Scale-up institutions and governments Staffing Solutions <10% Employment agencies Largest independent solution Start-up * % of revenue 12
Nedap Investment Proposition 13
Investment Proposition • Focus on 4 core technologies and 7 niche markets offers opportunities to build winning platforms • Track-record of autonomous growth by creating scalable and proprietary propositions • High and growing added value per FTE driven by our entrepreneurial culture • Growth in margins and recurring software services underpinned by creating eco-systems and an international scalable organisation • Transition to an asset light business model enhances capital efficiency and cash conversion • Solid financial position • Attractive dividend 14
Financial Track Record Revenue Operating profit (excl one-offs) Strong Financial Position 21 11% 80% 1 5% 0% 195 30% +12% 10% 0,8 185 25% 17 60% 9% 0,6 175 20% +4% 13 8% 40% 0,4 165 15% +1% 7% 0,2 155 10% 9 20% 145 5% 6% 0 135 0% 5 5% 0% -0,2 In €m In €m 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Total revenue Recurring revenue growth Operating profit (excl one-offs) Operating margin Solvency Net debt/EBITDA Added value ** Return On Invested Capital (ROIC) Dividend per share 190 65% 26% €3,00 180 €2.50 €2.50 64% 22% 170 63% 160 18% €2,00 62% 150 €1.40 14% €1.28 61% 140 130 60% 10% €1,00 In €k 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019* Added value per FTE Added Value % revenue * Initial dividend proposal withdrawn due to the corona crisis. 15 ** Added value is revenue plus or less inventory movements, the cost of materials and outsourced work.
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