SHAreholders

Our shareholders

Shareholders	Voting rights in %
Ennoconn Corporation	26.61%
Freefloat - including:	73.39%
BNP Paribas Asset Management	4.06%
Ninety One SA (Pty) Ltd	3.99%
Allianz Global Investors GmbH	3.95%
Treasury shares S&T	3.73%
S&T Management	1.70%

Focus on shareholders

The Executive Board and the Investor Relations department at S&T AG attach great importance to exchanging information at frequent intervals with interested investors and analysts.

The talks held during roadshows, conferences and video or phone conferences offer the opportunity to present S&T Group, answer questions and receive direct feedback from our stakeholders, which is then incorporated into initiatives such as the "PEC Programme" launched in 2019 and the "TTS Programme" launched in spring 2021.

TTS Program | Trust - Transparency - Share

Since 2010, S&T AG has always met or exceeded its guidance. Revenue increased in the last 5 years - since 2016 - from EUR 503.7 million to EUR 1,254.8 million in 2020, EBITDA increased by 376% from EUR 34.4 million to EUR 130.0 million in the same period, earnings per share increased by 260% to ~86 cents in 2020 (2016: 33 cents).

Nevertheless, the development of the share price lagged behind the operating performance of S&T Group. The falling P/E ratio indicates a lack of confidence on the part of the shareholder base in the future development of the S&T Group and also does not reflect the successes achieved or the targets laid down in Agenda 2023. In order to strengthen confidence, the Management Board of the S&T Group launched the TTS programme.

TRUST

The S&T business model is multi-layered and complex. Our products and technologies are part of everyday life, but they are not visible or easy to understand for most people. On top of that, we sell the products only to professional customers (B2B) and therefore do not advertise them much. Everyone uses S&T technology, but hardly anyone knows S&T. Our goal is to make it easier to understand our business model and to communicate it better:

We have consistently increased the number of investor meetings we hold in recent years.
We focus on presenting the story and the business case behind the highly complex technical solutions in an investor-friendly way.
During Capital Markets Day (the most recent of which was held in December 2020), renowned customers from all over the world explained the advantages of working with S&T, and will continue to do so in the future.
Ongoing growth to the number of analysts (currently 7) who analyse the S&T busness model, evaluate the S&T share and provide an additional opinion on S&T.
Currently, all analysts are issuing a buy recommendation on the S&T share with target prices of between EUR 27.00 and EUR 31.00.

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Guidance 2021 | Agenda 2023 | Vision 2030

We will also grow S&T brand awareness. In the coming months, S&T will have a much stronger presence on the Internet and in social networks. A dedicated digital marketing department has been created for this purpose to redesign and synchronise the Group's presence.

With all of these steps, we want to create confidence and convince the investor base to accompany us on the way to achieving our goals over the short term (Guidance 2021), midterm (Agenda 2023) and long term (Vision 2030).

TRANSPARENCY

Following numerous takeovers and a subsequent increase in the number of shareholdings and complex solutions, many investors complain about a lack of comparability or transparency. We want to create full transparency. We will therefore simplify the company structure and further expand the reporting of additional key figures.

Continue the "PEC programme" that was initiated in 2019 to increase profitability, efficiency and reduce costs (working capital and operating cash flow have already been significantly improved)
Further reduce the number of Group companies through mergers/liquidations (merger/liquidation of 11 subsidiaries in 2020, 14 companies planned for 2021)
Continue to consistently include inquiries from investors and analysts in our reports that are published promptly on a quarterly basis.

Additional information on one-off effects on a quarterly basis:

One-off affects P&L
One-off affects cash flow
Factoring rate
Organic growth
Disclosure of effects from M&A
Revenue and profit split by region

New disclosures to be introduced:

Recurring Revenues
Change in provisions from M&A
Effect of IFRS 16

SHARE - SHARE OUR PROFITS

We want our shareholders to have a share in our strong operating cash flow.

In the future, we will distribute 50% of net income as a dividend or use it for share buybacks.

Dividend

An increased dividend for the financial year 2020 will be proposed at the Annual General Meeting in June 2021. Furthermore, the dividend for the financial year 2019, which was suspended as a precautionary measure due to Corona legislation, is also to be made up.

Share buybacks

Share buybacks are carried out at favourable valuations compared to peer companies.
The treasury shares acquired are used as acquisition currency in M&A transactions and for dividend payments (bonus shares) as well as for fulfilling entitlements from stock option programmes.
Share buybacks amounting to EUR 26.8 million (number of treasury shares as of 31 December 2020: 1,467,969) were carried out in FY 2019 and FY 2020.

ESG Journey

For S&T, it is important to have an overall ESG concept embedded in the corporate strategy. Ongoing dialogue with investors, customers, proxy advisers, rating agencies and other stakeholders helps to recognise ESG opportunities and identify ESG risks in good time.

On basis of an external ESG analysis initiated step-by-step plan envisages step-by-step improvements in various areas over the coming years. Currently S&T is rated with BBB by MSCI ESG.