Kontron Ag · XETR:KTN
Kontron — Investor Presentation (July 2023)
23 slides from Kontron's investor presentation, July 2023
Slide 1: Explore the Kontron Group – IR Presentation
Explore the Kontron Group We are a fast-moving multinational technology leader. IR Presentation July 2023
Slide 2: Who we are
Who we are Pure-Play Leader of Smart Industrial IoT Solutions › Focused on the large, diverse and growing Industrial IoT market (IIoT) 4,475 1.2bn Employees (2022) 2023E Revenue (EUR)* › Fully integrated technology platform addressing high-growth end markets Integrated (SW+HW) solutions for smart fa
Slide 3: The New Kontron: 7 divisions in 3 segments
The New Kontron 7 divisions in 3 segments Europe Global Software & Solutions Industrial Telecom OT Services North America Asia Software Transport Revenue* FC 2023 Revenue* FC 2023 Revenue* FC 2023 € 810m € 260m € 230m Targets Targets Targets EBITDA** 11% EBITDA** 8% EBITDA** 15% GM 40% GM 30% GM 60%
Slide 4: The IoT Market
The IoT Market Key Metrics Focus Industries 29 billion $ 148.6 billion connected devices by 2022 Industrial IoT revenue with with 64 billion IoT devices a 11.4% CAGR from 2022 worldwide by 2025 Smart Factories Transportation 31% growth 21% adoption machines connected of 5G across mobile internet to
Slide 5: New Kontron: High- and Lowlights Q1 2023
New Kontron: High- and Lowlights Q1 2023 Highlights Lowlights › Increase in net profitability › Chip shortage: EUR 88m of EUR 16.6m (6% margin) overdue orders (down EUR 39m from peak) › Positive operat. cash flow EUR 5.2m (Q1-23) vs. EUR -60m › Inventory/cash drain back to (Q1-22) normal: EUR -57m o
Slide 6: Healthy start into 2023 for the New Kontron
Healthy start into 2023 for the New Kontron Revenue EBITDA Operating Net Income after NCI* (in EUR m) (in EUR m) (in EUR m) 40 16 Cent EPS 63% 26 Cent 300 20 277.7 247.0 15 200 29.6 16.6 20 23.7 10 100 10.0 5 + 12.4% + 24.9% + 66.4% 0 0 0 Q1-22 | Q1-23 Q1-22 | Q1-23 Q1-22 | Q1-23 * 2022 adj for DCO/
Slide 7: Kontron Group Balance Sheet as of 31.03.2023
Kontron Group Balance Sheet as of 31.03.2023 Equity and liquidity very strong Mio. EUR 31.03.2023 31.12.2022 31.03.2023 31.12.2022 NON-CURRENT ASSETS 413,2 412,1 EQUITY 645,8 635,7 Fixed Assets 382,3 379,1 accumulated results 446,2 449,6 as of Property, plant and equipment 97,8 95,5 as of Treasury s
Slide 8: Backlog and Design wins
The New Kontron Backlog and Design wins (in EUR bn) Backlog Design wins Top 10 Customers 2022 Country Volume EUR 4 Czech railway provider CZ 24.7m 3.41 Multinational telecom provider UK 16.5m 3,5 3.37 Medical respiratory machines GER 16.5m 2.97 3 UK railway provider UK 13.1m 2,5 2.35 Global leader i
Slide 9: Europe
Europe Segment overview Q1 2023 Revenue and EBITDA ** EBITDA margin*** › Split in Divisions (by size) Order Entry* › Industrial › Communications Book-to-bill: 1.11 › OT services › Our backbone: Design basic 232.7 16.0 16.4 208.7 technologies for Global and 9.6% 9.2% Software/Solutions 187.6 › 3,148
Slide 10: Global
Global Segment overview Q1 2023 Revenue and EBITDA ** EBITDA margin*** › Split in Regions (by size) Order Entry* › USA › China Book-to-bill: 1.25 › Acts as a sales channel to sell European basic technology and SW 80.1 4.0 8.1% › Locally engineering for customization and avionics 63.9 › USA did grow
Slide 11: Software + Solutions
Software + Solutions Segment overview Q1 2023 Revenue and EBITDA ** EBITDA margin*** › Split in Divisions (by size) Order Entry* › Transportation (hi-speed trains) › Software (susietec®) Book-to-bill: 2.39 › Our backbone: Design basic technologies for global and Software/Solutions 9.2 18.9% 127.4 ›
Slide 12: Strategies
The New Kontron Strategies Short-term 2023 Mid-term „Agenda 2025“ › Rebrand & Reposition: “Kontron” as an IoT leader › Segment “Global” › 10-10-10 company: 10% growth, 10% EBIT, 10% op CF › Sales channel for Europe products with strong local › More efficiency engineering › Organization: low overhead
Slide 13: Products and Technologies
The New Kontron Products and Technologies Basic technologies Vertical technologies › 5G › Smart factories › Connectivity is key for IoT › Smart transportation → 5G will be main media › Intelligent traffic control › TSN: real time for 5G › Smart energy → key know how of Kontron › Communication system
Slide 14: Bigger acquisitions planned
The New Kontron Bigger acquisitions planned M&A is a core competence of Kontron M&A Volume (in EUR m) › Half of growth by M&A (10% /year), half organic Game Changer › Target: Restructuring situations at no profit = low prices 350 Acquisitions Kontron M&A › High synergies with Kontron = achieve >10%
Slide 15: Cash Usage 2023
The New Kontron Cash Usage 2023 Liquidity on hand March 2022 Cash usage for acquisitions and operations › EUR 438.4m cash on hand › Q1 factoring reduced by 16.9m, ST debt by EUR 66.1m › EUR 59m ST receivables from Vinci › Target Q2-Q4/23: reduce further EUR 20m debt › EUR 180m non utilized lines › S
Slide 16: Kontron offers differentiated IIoT solutions
Kontron offers differentiated IIoT solutions Our competitive landscape Our distinctive competitive advantages Selected competitors in Revenue Region Industrial IoT (in USD m) › Unmatched R&D scale Mercury* 3,800 North America › 3,200 FTEs, budget EUR 170m Curtiss Wright* 2,500 North America Advantec
Slide 17: Update on ESG
Update on ESG Achievements Outlook & Targets › MSCI Rating increased › Increasing interest of sustainable investors to be met › Customers and Investors – CO2 disclosure requests more often › UN Global Compact joined and 9 SDG’s identified we support Making our data easily accessible and transparent
Slide 18: Guidance 2023 & Outlook 2025
The New Kontron Guidance 2023 increased by 10% to EUR 66m – we expect no extraordinary effects New Kontron w/o Guidance 2023 & Outlook 2025 divested IT Services 150 1.500,00 In Mio. EUR 2023E 2025E 1.200,00 100 900,00 Revenue 1,200m 2,000m* 600,00 50 300,00 EBITDA 11% 13% 0,00 0 2014 2015 2016 2017
Slide 19: Summary
Summary Achievements Q1-23 Targets › Strong order intake of EUR 391m (book-to-bill 1.41) › Guidance 2023: › Refocus on IIoT completed “the new Kontron” › Revenue ~EUR 1,200m › Significant improved net income of EUR 16.6m (Q1-23) › Net income EUR 66m vs 10.0m (Q1-22) › EUR 2,000m IIoT revenues at > 1
Slide 20: Disclaimer
Disclaimer This document includes 'forward-looking statements'. Forward-looking statements are all statements, which do not describe facts of the past, but containing the words "believe", "estimate", "expect", "anticipate", "assume", "plan", "intend", "could", and words of similar meaning. These for
Slide 21: APPENDIX
Explore the Kontron Group We are a fast-moving multinational technology leader. APPENDIX
Slide 22: The Kontron Share - SDAX & TecDAX member
The Kontron Share - SDAX® & TecDAX® member Shareholder Structure Coverage AlsterResearch Buy: EUR 32.00 Ennoconn 27.64% Erste Buy: EUR 24.50 Kontron Management - 7.02% Hauck & Aufhäuser Buy: EUR 30.00 Naneva B.V (PPF Holdings B.V.) - 5.29% Freefloat 60,05% includes as follows Jefferies Buy: EUR 27.0
Slide 23: Before and after IT divestment
The New Kontron Before and after IT divestment S&T AG 2021 New Kontron 2023 Comment Revenues (EUR m) 1,342 ~1,200 Reflects divestment of EUR 387m in IT service and EUR 40m in Russia Order backlog 1,334 (1160 CO) 1,460 (Dec-22) IT divestment already replaced by new IoT orders Design win pipeline 3,36