O D D O B H F G E R M A N C O N F E R E N C E

F R A N K F U R T / M A I N , 1 9 . / 2 0 . F E B R U A R Y 2 0 1 9

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T E C H N O L O G Y- D R I V E N G E R M A N „ M I T T E L S TA N D “ I N O N E S H A R E

H I D D E N C H A M P I O N S

T H I S I S G E S C O

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B U S I N E S S M O D E LS T R AT E G Y N E X T L E V E LF I N A N C I A L Y E A R 2 0 1 8 / 2 0 1 9G E S C O S H A R E M & AA P P E N D I X

OV E R V I E W

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B U S I N E S S M O D E L

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Industrial SMEs including market and technology leaders Eighteen companies operating under the roof of GESCO AG Flexible, operationally independent companies that benefit from

being part of a strong group Innovative technology „Made in Germany“ for global markets

GESCO Group

GESCO AGA long-term investor and safe haven for succession solutions We acquire and develop industrial SMEs on a long-term basis, no exit intention Majority acquisitions, generally 100 %, mostly as succession arrangements New management is offered the opportunity to acquire a stake in the new company

of up to 20 % (“entrepreneur company”)

B U S I N E S S M O D E L

Hidden Champions from the technology-driven German „Mittelstand” in one share

GESCO –THE INDUSTRIAL GROUP

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P R O D U C T I O N P R O C E S SDynamically growing markets, high degree of innovation, automation Robotics and automation solutions in machine and plant construction, technology-intense manufacturing services

R E S O U R C EConsolidating markets, focus on niches and customer serviceCustomised preparation of primary materials, e. g. materials supply, transport and loading technology

H E A L T H & I N F R A S T R U C T U R EStable markets, relatively resilient to economic cycleComponents, modules and products for providers for mass markets close to end customers

M O B I L I T YCurrently strategic shifts with big opportunities as well as risks, market development unclear and challenging Tools and moulds, components, parts etc. for vehicleindustry

T H E G E S C O -S E G M E N T S

B U S I N E S S M O D E L

Technologies

End-market oriented segments

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S T R A T E G YN E X T L E V E L

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O U R V I S I O N F O R T H E G E S C O G R O U P

S T R A T E G Y N E X T L E V E L

All companies are Hidden Champions or well on track to becoming Hidden Champions

Well-balanced, robust and resilient portfolio with three core holdings and numerous basic holdings

Well-established Excellence Programs Strong corporate culture, attracting talents and

offering them room for development, resulting in High Performance Teams

Added Value on all levels, resulting in above-average growth, margins, cash flows

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Well-established niche providers

O U R U N D E R S T A N D I N G O F H I D D E N C H A M P I O N S

B U S I N E S S M O D E L

>Leading in their markets

Market-oriented, close to customers, anticipating their needs

Innovative, with unique products and high barriers to entry

Highly efficient production, reliable, delivering the defined quality

>>>>

Generating sustainableeconomic success

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O U RA P P R O A C H

S T R A T E G Y N E X T L E V E L

Hidden Champions to their next level

potential Hidden Champions into real Hidden Champions

the current portfolio into a more balanced, more resilient, more profitable one

GESCO AG into a shareholder that adds more value and establishes a value-add mindset within GESCO Group

Make GESCO the best owner for ambitious SMEs

Laying the foundations for future success

D E V E L O P …

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H O L D I N G Review the portfolio

Rethink M&A priorities and processes

Intensify the role of the holding: makeGESCO AG an enabler for its companies

Add skills in terms of methods and know-how

Distribute them throughout all companies

Enhance corporate culture and team spirit

Encourage visions to achieve NEXT LEVELS

O U RR O A D M A P

M & A Buy bigger companies Put stronger focus on add-ons Optimise processes Intensify direct approach

S T R A T E G Y N E X T L E V E L

E X I S T I N G G R O U P Conduct SWOT analysis Implement Excellence Programs Start with flagship projects

Turning our vision into reality…

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S T R A T E G Y D E T A I L E DC O N C E P T

I M P L E M E N T A T I O N

O U RT I M E L I N E

BuildStrategy

2018

Identify andimplement

flagshipprojects

2019 2020

Develop Holding

2021…

RethinkM & A

Implement Excellence Program OPEX

Potential further Programs

Create detailed concept

S T R A T E G Y N E X T L E V E L

P H A S E 1 2 3

…step by step

Implement Excellence Program MAPEX

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F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9

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P L E A S EN O T E

D E CN O VO C TS E PA U GJ U LJ U NM A YA P R M A RF E BJ A N

FY companies = calendar year

FY GESCO AG / GESCO Group

D E CN O VO C TS E PA U GJ U LJ U NM A YA P RM A RF E BJ A N

F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9

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I N I T I A LE X P E C T A T I O N S /S T A R T I N G P O S I T I O N

GDP growth forecast

+1.7 % to +2.4 %

VDMAproduction growth forecast

+ 3 %from April: +5 %

Politics

bear considerable Risks

Delivery times

noticebly longer,high utilisation

in the supply chain

F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9

( a t P r e s s C o n f . 2 8 . 0 6 . 2 0 1 8 )

Dynamic development of last year continues

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Ongoing lively demand

order intake grows strongly

Newly acquiredSommer & Strassburger

rapidly integrated into Group reporting and processes

For full financial year

Outlook confirmed

D E V E L O P M E N T N I N E M O N T H S P E R I O D

F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9

9 M O P E R A T I O N A L 0 1 . – 0 9 . 2 0 1 8

Strong nine months period, ongoing demand

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Growth in sales

clearlyhigher increase

in earnings

Sommer & Strassburger

in Q3 included in P&L pro rata with one month

Economic environmentdeteriorates

VDMA cuts downOutlook for 2018 from 5 % to 2 %

D E V E L O P M E N T N I N E M O N T H S P E R I O D

GESCO Group

AdvancesInternationalisation

Setter Group

Subsidiary in Mexiko

FRANK Group

Subsidiary in Russia

Dörrenberg Group

Subsidiary in USA

G E S C H Ä F T S J A H R 2 0 1 8 / 2 0 1 9

Regardless from short-term fluctuations in economic development,we are broadening the basis for future growth

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9 M O P E R A T I O N A L 0 1 . – 0 9 . 2 0 1 8

F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9

D E V E L O P M E N TN I N E M O N T H S P E R I O D

F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9

Organic* +14.3%

On organic basis almost unchanged

* Organic prev. year without Protomaster (sold Dec. 2017), reporting year without Sommer & Strassburger and stafffrom Frank subsidiaries in Ukraine and Russia

Organic* +7.4%

2017 / 2018 2018 / 2019 CHANGE

ORDER INTAKE / € mn 407.9 456.6 +11.9%

GROUP SALES / € mn 404.4 424.6 +5.0%

EBITDA / € mn 49.4 53.1 +7.3%

EBIT / € mn 31.5 35.8 +13.7%

GROUP NET INCOME AFTER MINORITY INTEREST / € mn 16.4 19.7 +20.4%

EARNINGS PER SHARE ACC. TO IFRS / € 1.51 1.82 +20.4%

EMPLOYEES / No. 2,482 2,669 +7.5%

INVESTMENTS / € mn 15.9 19.2 +20.2%

9 M O P E R A T I O N A L 0 1 . – 0 9 . 2 0 1 8

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D E V E L O P M E N TN I N E M O N T H S P E R I O D

F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9

2017 / 2018 2018 / 2019 CHANGE

ProductionProcessTechnology

Ord. Int.SalesEBIT

56.048.42.0

71.552.62.9

+27.6%+8.7%

+46.9%

ResourceTechnology

Ord. Int.SalesEBIT

202.2205.427.8

224.7217.528.7

+11.1%+5.9%+3.3%

Healthcare &Infrastructure Technology

Ord. Int.SalesEBIT

96.496.69.5

116.7109.011.3

+21.1%+12.8%+18.9%

Mobility Technology

Ord. Int.SalesEBIT

53.354.5-0.4

43.646.03.2

-18.2%-15.5%

---

Strong new business, intake growsstrongly; somes orders will be realised in 2019/2020

In general strong demand; order intake inludes large order which will be realised in 2019/2020; temporary underutilisation of capacities in one field of business

Companies generate brisk demand on a broad scale, all companies increased order intake and sales

In previous year disposal of low-margin sales, earnings clearly improved

9 M O P E R A T I O N A L 0 1 . – 0 9 . 2 0 1 8

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80000

90000

100000

110000

120000

130000

140000

150000

160000

170000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2016/2017 2017/2018 2018/2019

D E V E L O P M E N T I N F O U R T H Q U A R T E R

F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9

O R D E R I N TA K E S A L E S

PRELIMINARY FIGURES [€‘000]

Q 4 O P E R A T I O N A L 1 0 . – 1 2 . 2 0 1 8

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Salesapprox. € 145 million

order intakeapprox. € 135 million

Order intake Q4 below prev. year, which contained major order of

approx. € 10 mn from our point of

view no signal forsustained economic

slowdown

G R O U PO U T L O O K

F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9

2017 / 2018Actual

2018 / 2019Outlook 06/2018

2018 / 2019Outlook 11/2018

2018 / 2019Outlook 02/2019

Group sales(€ million)

547.2 550 to 560

Organically expected at upper end of range; in addition, approx. € 6.5 million sales from Sommer & Strassburgeron a pro rata basis

Confirmed/specified: approx. € 570 million including Sommer & Strassburger

Group net incomeafter minority interest(€ million)

16.1 26 to 27

Organically expected at or slightly below € 26 million; in addi-tion, € 0.5 million earnings burden due to first time consolidation of Sommer & Strassburger

Confirmed

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S E G M E N TO U T L O O K

F I N A N C I A L Y E A R2 0 1 8 / 2 0 1 9

Comments/ Expectations2018/2019

ProductionProcessTechnology

Sales

EBIT

Strong incoming orders; companies benefit from trend to automation; for full FY 2018/2019 sales and earnings growth expected on organicbasis plus growth due to Sommer & Strassburger

Resourcetechnology

Sales

EBIT

Business activities continue at a high level; temporary underutilisationof capacities in one field of business; higher sales expected yoy, while earnings expected at previous year‘s level (adjusted of cartel fine)

Healthcare &Infrastructure Technology

Sales

EBITStrong incoming orders; ongoing positive development throughout the companies; sales and earnings expected above previous year

Mobility Technology

Sales

EBITDecline in sales yoy due to sale of Protomaster and closing of business division; earnings much better expected yoy

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G E S C O S H A R E

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G E S C O O N T H ES T O C K M A R K E T

G E S C O S D A X

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65

70

75

80

85

90

95

100

105

110

115

120

G E S C O S H A R EI N C L . D I V I D E N D S V S . S D A X , 1 Y E A R [ % ]

M & A

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G E N E R A LS I T U A T I O N

GESCO: always in search forHidden Champions

with sales from € 20 mn to € ~100 mn

Seller‘s Market

strong demand in the face of limited supply

Directapproach

to be intensified

GESCO

good deal flowcontinues

M & A

GESCO’s strategy offers added value for entrepreneurs

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R E C E N TA C Q U I S I T I O N( A U G . / S E P T . 2 0 1 8 )

Sommer & StrassburgerGmbH & Co. KG

Designs and produces processing equipment for the pharmaceutical, food, water technology and chemical industries

Leading-edge provider in the relevant industries with own product lines

High end quality, extensive materials expertise and in-house system development

Process engineering know-how to understand its customers’ processes

Sales € 20 million, 140 employees

Vendor will remain active at the company as managing director

M & A

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A P P E N D I X

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S H A R E H O L D E R S T R U C T U R E A P P E N D I X

13.7 %Stefan Heimöller

private investor, entrepreneur,

supervisory boardmember since 2013

14.4 % Investmentaktiengesellschaft für langfristige Investoren TGV institutional investor, representedin supervisory board since 2017

~34.45 %* other institutional investors

~34.45 %*other private investors

* estimate

86.3% FREEFLOAT

ACC. TO DEFINITION OFDEUTSCHE BÖRSE

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3.0 % LGT Capital Partners Ltd.

G E S C O G R O U P O V E R V I E W A P P E N D I X

CompanySales 2017

€‘000Staff

as at 31.12.2017GESCO AGShareholding

ProductionProcess Technology

MAE Group 44,608 217 100%

Sommer & Strassburger GmbH & Co. KG 18,000 125 100%

VWH GmbH 12,641 123 80%

Georg Kesel Group 12,369 61 90%

C.F.K. CNC-Fertigungstechnik Kriftel GmbH 8,017 67 80%

ResourceTechnology

Dörrenberg Group 199,120 533 90%

SVT GmbH 42,975 186 90%

Pickhardt & Gerlach Group 32,989 42 100%

Health & Infrastructure Technology

Frank Group 31,517 298 90%

Setter Group 30,614 114 100%

AstroPlast Kunststofftechnik GmbH & Co. KG 14,381 82 100%

Franz Funke Zerspanungstechnik GmbH & Co. KG 17,951 86 80%

Haseke GmbH & Co. KG 15,107 75 80%

Hubl GmbH 14,092 105 80%

MobilityTechnology

Werkzeugbau Laichingen Group 21,248 173 100%

Dömer GmbH & Co. KG Stanz- und Umformtechnologie 17,849 100 100%

Modell Technik Formenbau GmbH 11,460 116 100%

Paul Beier GmbH Werkzeug- und Maschinenbau & Co. KG 10,409 93 100%

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FA C T S & F I G U R E S A P P E N D I X

1989

€ 10,839,499

10,839,499 registered shares

86.3 %

Xetra; Frankfurt (regulated market); Berlin, Düsseldorf, Hamburg/Hanover, Munich, Stuttgart (open market)

A1K020

DE000A1K0201

24.03.1998

31 March

Pareto Securities ASOddo BHF Bank AG

Founded

Share capital:

Shares:

Free float

Stock markets

Sec. identification number:

ISIN:

IPO:

End of financial year:

Designated sponsors:

31

F I N A N C I A L C A L E N D A R &I R C O N T A C T

A P P E N D I X

Oddo BHF German Conference, Frankfurt/Main

Annual Accounts Press Conference / Analysts‘ Meeting

Q1 figures

Annual General Meeting, Wuppertal

Q2 figures

Q3 figures

GESCO AGInvestor RelationsOliver VollbrechtJohannisberg 742103 WuppertalGermany

19-20 Feb. 2019

27 June 2019

14 Aug. 2019

29 Aug. 2019

14 Nov. 2019

14 Feb. 2020

Tel +49 202 24820-18Fax +49 202 24820-49

info@gesco.dewww.gesco.de

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