Kunsthalle Krems, Austria

Q1 2019/20

M a n a g e m e n t P r e s e n t a t i o n

3 S e p t e m b e r 2 0 1 9

© Faruk Pinjo

2

• Group revenues grow by 1.1% (FX-adj. plus 0.9%)

Lighting Segment: plus 1.4% - promising growth in core DACH-region

(+6,7%); continuing price competition (2-3%)

Components Segment revenues on previous year level (-0.1%)

Second continuing quarterly growth after 13 quarters of decline

• Adj. EBIT increase from EUR 10.0 million to EUR 15.8 million

Improvement based on slight revenue growth and cost saving measures

Development costs EUR 1.6 million and selling & administrative costs

EUR 3.4 million below PY

• Net profit at EUR 10.9 million (PY: EUR 2.8 million)

One-off costs for restructuring measures of EUR 0.4 million

(PY EUR 2.7 million)

• Guidance 2019/20 confirmed

Slight increase in revenues & adj. EBIT margin of 3-5%

Q1 2019/20 results

Zumtobel Group shows slight growth and

solid improvement of profitability

3

L i g h t i n g S e g m e n t s h ow s s o l i d E B I T i m p r ove m e n t i n Q 1

L i g h t i n g S e g m e n t – R e v e n u e a n d E B I T d e v e l o p m e n t

Q1 Q2 Q3 Q4

219.5230.5222.6

199.9

223.8

Q1 Q2 Q3 Q4

L I G H T I N G S E G M E N T

R E V E N U E S A D J U S T E D E B I T1 )

Revenues FY 2018/19 EUR 873.7 million (minus 3.8%) Adjusted EBIT FY 2018/19 EUR 21.1 million (margin of 2.4%)

8.1

11.2

-0.7

2.4

13.5

6.1%

3.7%

4.9%

-0.3%

1.4%

(fx-adj. 0.9%)

1.1%

Revenues 2018/19

In EUR million

Revenues 2019/20

In EUR millionAdjusted EBIT 2018/19

Adjusted EBIT 2019/20

in EUR million

1) Reported EBIT

adjusted for

special effects

Adjusted EBIT 2018/19

Adjusted EBIT 2019/20

as a % of revenues

Q1 2019/20 results

4

F l a t Vo l u m e d eve l o p m e n t ; P r i c e p r e s s u r e b i g g e s t d r a g o n E B I T m a r g i n

C o m p o n e n t s S e g m e n t – R e v e n u e a n d E B I T d e v e l o p m e n t

Q1 Q2 Q3 Q4

89.4 86.689.383.3

88.9

Q1 Q2 Q3 Q4

C O M P O N E N T S S E G M E N T

-0.1%

(fx-adj. +0.6%)

R E V E N U E S A D J U S T E D E B I T1 )

Revenues FY 2018/19 EUR 348.3 million (minus 1.3%) Adjusted EBIT FY 2018/19 EUR 25.4 million (margin of 7.3%)

8.1 7.8

3.5

6.06.4

9.0%

4.2%

8.1%

7.2%

9.0%

Revenues 2018/19

In EUR million

Revenues 2019/20

In EUR millionAdjusted EBIT 2018/19

Adjusted EBIT 2019/20

in EUR million

1) Reported EBIT

adjusted for

special effects

Adjusted EBIT 2018/19

Adjusted EBIT 2019/20

as a % of revenues

Q1 2019/20 results

5

S av i n g m e a s u r e s l e a d t o i m p r ove m e n t o f p r o f i t a b i l i t y

Z u m t o b e l G r o u p – R e v e n u e a n d E B I T d e v e l o p m e n t

Q1 Q2 Q3 Q4

293.1 302.0296.4

268.7

298.2

Q1 Q2 Q3 Q4

Z U M T O B E L G R O U P

1.1%

(fx-adj. 0.9%)

R E V E N U E S A D J U S T E D E B I T1 )

Revenues 2018/19

In EUR million

Revenues 2019/20

In EUR million

Revenues FY 2019/20 EUR 1,162.0 million (minus 2.9%) Adjusted EBIT FY 2018/19 EUR 27.6 million (margin of 2.4%)

Adjusted EBIT 2018/19

Adjusted EBIT 2019/20

in EUR million

1) Reported EBIT

adjusted for

special effects

Adjusted EBIT 2018/19

Adjusted EBIT 2019/20

as a % of revenues

10.0

14.8

-0.9

3.7

15.8

3.4%

4.9%

-0.3%

1.3%

5.3%

Q1 2019/20 results

6

M a i n b u i l d i n g b l o ck s o f t h e a d j . E B I T d eve l o p m e n t

Z u m t o b e l G r o u p – A D J . E B I T B r i d g e

Adj. EBIT

Q1 2018/19

R&D Adj. EBIT

Q1 2019/20

[in EUR million]

∆ Gross profit

(before R&D)

OthersSelling & Administration

Selling and Administration

expenses favorably influenced

by saving measures

Increased own work

capitalized and lower

personnel costs

+1.6

+0.7

+3.4 +0.1

10.0

15.8

Q1 2019/20 results

Slightly improved

Gross Profit despite

ongoing price pressure

7

N e t p r o f i t i n c r e a s e d f r o m E U R 2 . 8 t o 1 0 . 9 m i l l i o n

Z u m t o b e l G r o u p – I n c o m e s t a t e m e n t

in EUR million Q1 2019/20 Q1 2018/19 Change in %

Revenues 296.4 293.1 1.1

Cost of goods sold -200.8 -199.7 0.5

Gross profit (incl. development) 95.6 93.4 2.4

as a % of revenues 32.3 31.9

SG&A expenses -79.8 -83.4 -4.3

Adjusted EBIT 15.8 10.0 58.4

as a % of revenues 5.3 3.4

Special effects -0.4 -2.7 84.9

EBIT 15.4 7.3 >100

as a % of revenues 5.2 2.5

Financial results -1.8 -2.8 35.4

Profit before tax 13.6 4.4 >100

Income taxes -2.7 -1.6 64.9

Net profit for the period 10.9 2.8 >100

Earnings per share ( in EUR) 0.25 0.06 >100

Q1 2019/20 results

8

Fr e e c a s h f l ow a t E U R 9 . 9 m i l l i o n ( P Y m i n u s E U R 6 . 2 m i l l i o n )

Z u m t o b e l G r o u p – C a s h F l o w S t a t e m e n t

(cumulative figures in EUR million)

in EUR million Q1 2019/20 Q1 2018/19

Cash flow from operating results 30.8 21.0

Change in working capital -3.6 -8.4

Change in other operating items -6.9 -3.4

Taxes paid/received -0.7 -1.0

Cash flow from operating activities 19.6 8.3

Proceeds from the sale

of non-current assets0.6 0.2

Capital expenditures

on non-current assets-10.4 -15.5

Change in current and

non-current financial assets0.0 0.8

Cash flow from investing activities -9.7 -14.5

Free cash flow 9.9 -6.2

F R E E C A S H F L O W D E V E L O P M E N T

FY 2018/2019 FY 2019/2020

Q1 H1 Q1-Q3 FY

7.4

-6.2

+9.0

-8.9

+3.4

9.9

Q1 2019/20 results

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S o l i d b a l a n c e s h e e t s t r u c t u r e ( i n c r e a s e o f n e t d e b t d u e t o I F R S 1 6 )

Z u m t o b e l G r o u p – K e y b a l a n c e s h e e t d a t a

Net debt totalled EUR 199.1 million as of 31 July 2019

(30 April 2019: EUR 148.7 million)

Solid liquidity position backed by (as of 30 April):

• Consortium credit agreement with a term ending Nov. 2022 and a max.

volume of EUR 200 million, whereof EUR 50 million drawn

• Short-term bilateral credit agreement with a volume of EUR 40 million

(bullet repayment in January 2020; fully drawn)

• Two long-term credit agreements of EUR 40 million each with the

European Investment Bank (EIB) (bullet repayment in September 2024,

respectively February 2025; both fully drawn)

• Uncommitted lines of credit totalling EUR 62.6 million

Financial covenants attached to :

• Debt coverage ratio (=net debt/EBITDA) < 3.5

• Equity ratio > 25%

Testing on 31 Oct as well 30 April

Covenants will be adjusted as of 31 Oct based on IFRS 16

in EUR million 31 July 2019 30 April 2019

Total assets 990.8 920.9

Net debt 199.1 148.7

Equity 274.7 262.8

Equity ratio in % 27.7 28.5

Gearing in % 72.5 56.6

Investments 10.4 66.2

Working capital 175.8 172.8

As a % of rolling

12 months revenues15.1 14.9

Q1 2019/20 results

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I m p l e m e n t a t i o n o f I F R S 1 6 i n Q 1 2 0 1 9 / 2 0 : E U R 4 . 0 m i l l i o n E B I T DA e f fe c t

Z u m t o b e l G r o u p – i m p l e m e n t a t i o n o f I F R S 1 6

• Extension of the Balance Sheet

Recognition of “Right of Use Asset“

Recognition of „Lease Liability“

• Impact on Income Statement

Increase of EBITDA: No expenses for rent / leasing

Increase of EBIT: Expenses for Rent / Leasing are broken down into

depreciation of “Right of Use Asset” and interest on “Lease Liability”

Decrease of interest result: interest on “Lease Liability”

• Change in accounting standard has no impact on underlying cash flows

Income Statement In EUR million

EBITDA 4.0

Depreciation (3.6)

EBIT 0.4

Interest Result (0.5)

Net Income (0.1)

Balance Sheet In EUR million

Change of net debt 50.1

Q1 2019/20 results

11

S e c o n d q u a r t e r o f g r ow t h

Z u m t o b e l G r o u p – S a l e s d e v e l o p m e n t b y Q u a r t e r v s P Y P e r i o d i n %

5.9

-0.9

Q1 Q3

-2.6

5.8

Q4

2.8

-4.9

Q1

5.0

Q3

-10.1

Q2

-0.6

Q3Q2 Q4 Q1 Q2

-7.3

Q3

-12.7

Q4

-7.6

Q1

-1.7

Q2

-5.3

3.4

Q4 Q1

1.1

-4.7

2015/16 2016/17 2017/18 2018/19

Positive trend in Q on Q revenue

development since Q4 17/18 with a

first time growth in Q4 18/19

2019/20

Q1 2019/20 results

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S l i g h t i m p r ove m e n t o f r eve n u e s d e s p i t e ch a l l e n g i n g m a r ke t e nv i r o n m e n t

Z u m t o b e l G r o u p – R e g i o n a l r e v e n u e d i s t r i b u t i o n

in EUR million Q1 2019/20Change in %

nominal FX adjusted

D/A/CH 92.9 5.6 4.0

Northern Europe 61.8 -1.9 -0.9

Benelux &

Eastern Europe46.1 2.1 3.4

Southern Europe 47.3 -3.1 -3.1

Asia & Pacific 30.3 0.7 1.2

Middle East & Africa 11.0 -13.3 -15.1

America 7.1 29.2 24.2

Total 296.4 1.1 0.9

Q1 2019/20 results

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Z u m t o b e l G r o u p O u t l o o k : 2 0 1 9 / 2 0 w i l l b e a p e r i o d o f t r a n s fo r m at i o n

G u i d a n c e 2 0 1 9 / 2 0 a n d m e d i u m - t e r m g o a l

• For the 2019/20 financial year, the Management Board expects – in spite of the challenging market environment – a slight increase in revenues as well

as an improvement in the adjusted EBIT margin to 3-5% (FY 2018/19: 2.4%).

• The medium-term goal to generate an EBIT margin of roughly 6% by the 2020/21 financial year remains intact.

Gross Profit

• Slight increase in revenues

• Improved margins: FOCUS markets as well

as sustainable and profitable applications

• Improved production costs: Ramp up of

production plant in Nis/ Serbia

Action plan to generate EBIT margin of 6%

SG&A

• Lean organisation for competitive cost

base in administration & sales

• Digitalisation of business processes

SG&A

~1%

FY 2018/19

~1%

Gross Profit

~1%

FY 2019/20

6%

Gross Profit

~0.5%

SG&A FY 2020/21

2.4%

3-5%

Q1 2019/20 results

Back-up

© Vorname Name

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Wo r k i n g c a p i t a l b e l ow p r i o r ye a r l eve l

Z u m t o b e l G r o u p – W o r k i n g c a p i t a l

Q1 Q2 Q3 Q4

• Working capital at EUR 181.8

million as of 31 July 2019 (30

April 2019: EUR 172.8 million)

• In % of rolling 12-month

revenues, working capital

down to 15.1% (PY: 16.7%)

FY 2017/2018 FY 2018/2019 FY 2019/2020in % of rolling 12-month revenues

18.0%17.3%

17.9%

15.7%16.7%

15.9%15.1% 14.9%15.1%

Q1 2019/20 results

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S u p p l e m e n t d a t a r e g a r d i n g S e g m e n t Re p o r t i n g

Z u m t o b e l G r o u p

Lighting Segment Components Segment Reconciliation Group

in TEUR Q1 2019/20 Q1 2018/19 Q1 2019/20 Q1 2018/19 Q1 2019/20 Q1 2018/19 Q1 2019/20 Q1 2018/19

Net revenues 222.555 219.492 89.270 89.355 -15.434 -15.739 296.391 293.109

External revenues 222.505 219.367 73.883 73.730 2 11 296.391 293.109

Inter-company revenues 50 125 15.387 15.625 -15.437 -15.750 0 0

Adjusted EBIT 13.537 8.147 6.409 8.083 -4.121 -6.239 15.824 9.992

Special effects 721 2.585 -318 195 11 -43 414 2.737

Operating profit/loss 12.816 5.562 6.727 7.889 -4.132 -6.197 15.410 7.254

Investments1 46.497 9.732 14.477 4.626 2.967 1.107 63.941 15.465

Depreciation -10.801 -8.024 -3.343 -3.108 -1.296 -955 -15.440 -12.087

Q1 2019/20 results

1) Investments in Q1 2019/20 increased by million 53.5 EUR due to first time application of IFRS 16 (LS: million 42.2 EUR, CS : million 10.4 EUR)

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F i ve - Ye a r O ve r v i e w

Z u m t o b e l G r o u p

in EUR million 2018/19 2017/18 2016/17 2015/16 2014/15

Revenues 1,162.0 1,196.5 1,303.9 1,356.5 1,312.6

Adjusted EBIT 27.6 19.7 72.4 58.7 66.5

as a % of revenues 2.4 1.6 5.6 4.3 5.1

Net profit/loss for the period -15.2 -46.7 25.2 11.9 11.9

as a % of revenues -1.3 -3.9 1.9 0.9 0.9

Total assets 920.9 986.1 1,019.6 1,068.6 1,086.3

Equity 262.8 268.3 334.0 333.2 322.6

Equity ratio in % 28.5 27.3 32.8 31.2 29.7

Net debt 148.7 146.3 91.0 134.8 148.2

Cash flow from operating results 56.8 53.5 116.8 84.8 103.1

Investments 66.2 69.0 45.2 58.4 76.6

as a % of revenues 5.7 5.8 3.5 4.3 5.8

R&D total 66.2 73.4 82.4 87.9 79.0

as a % of revenues 5.7 6.1 6.3 6.5 6.0

Headcount incl. contract worker

(full-time equivalent)5,878 6,224 6,562 6,761 7,234

Q1 2019/20 results

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F i n a n c i a l C a l e n d a r

Z u m t o b e l G r o u p

3 September 2019 Interim Report Q1 2019/20 (1 May 2019 - 31 July 2019)

3 December 2019 Half-Year Financial Report 2019/20 (1 May 2019 - 31 October 2019)

3 March 2020 Interim Report Q1-Q3 2019/20 (1 May 2018 - 31 January 2020)

Q1 2019/20 results

19

Thank you

Z U M T O B E L G R O U P A G

I n v e s t o r R e l a t i o n s

T e l . : + 4 3 ( 5 5 7 2 ) 5 0 9 - 1 1 2 5

e m a n u e l . h a g s p i e l @ z u m t o b e l g r o u p . c o m

w w w . z u m t o b e l g r o u p . c o m

20

The facts and information contained herein constitute forward-looking statements as of the date they were made and based upon

assumptions as to future events or circumstances that may not prove to be complete or accurate. By their nature, these statem ents

involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and are difficult to

predict. Therefore, actual outcomes or results may differ materially from what is expressed, implied or forecasted in these s tatements.

Neither Zumtobel Group AG nor any of its directors, officers, employees or advisors nor any other person makes any representation or

warranty, expressed or implied, as to the accuracy or completeness of the facts and information contained in this document or the

related oral presentation thereof, including responses to questions following the presentation. Neither Zumtobel Group AG nor any of its

directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arisi ng, directly

or indirectly, from any use of this document, the facts and/or information.

Whilst all reasonable care has been taken to ensure the facts stated herein are accurate and that the assumptions and opinion s

contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and

overview of, the business of Zumtobel Group AG as of the date this document was made. Where any information and statistics are

quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by

Zumtobel Group AG as being accurate.

D i s c l a i m e r