TKH Group N.V. Cert · EURONEXT:TWEKA
TKH Group N.V. Cert — TKH Group — Investor Presentation (August 2022)
44 slides from TKH Group N.V. Cert's investor presentation, August 2022
Slide 1: TKH Group NV Investor presentation
TKH Group NV Investor presentation August 2022 1 | TKH Investor presentation | August 2022
Slide 2: Important Information – Disclaimer
IMPORTANT INFORMATION – DISCLAIMER Cautionary note regarding forward looking statements Statements included in this presentation release that The forward-looking statements are based upon our are not historical facts (including any statements current expectations, plans, estimates, assumptions conce
Slide 3: Profile
Profile TKH Group NV (TKH) is a leading technology company focused on advanced innovative technology systems in high- growth markets. Our mission is to create best-in-class technologies in the field of Smart Vision systems, Smart Manufacturing systems, and Smart Connectivity systems. TKH aims to cre
Slide 4: Key messages
Key messages Strong post-COVID recovery during 2021 shows strong market position and successful strategy of the TKH Group Introducing a new simplified segmentation delivering increased transparency on value creation of activities Prioritizing ESG in our strategy and actions, driven to improve our im
Slide 5: Strategic model
Strategic model Mission Create Smart Technologies for sustainable value creation Positioned as technology leader, TKH aims to create advanced best-in-class Smart Vision Technologies to improve its customers’ efficiency, sustainability, safety and security Entrepre- Environmental Transparency Account
Slide 6: We are an innovative and leading technology company
We are an innovative and leading technology company The innovative and disruptive Smart Technologies of TKH deliver value More than 15% Creation of turnover realized advanced by new technology innovations systems TKH is an 30% of our Continuous innovative technology acceleration & Technology proposi
Slide 7: Well positioned to benefit from relevant megatrends
Well positioned to benefit from relevant megatrends The relevant megatrends act as important growth drivers and shape the future of our strategy and Smart Technologies AUTOMATION & DIGITALIZATION Industry 4.0 – ‘Hands-off, eyes-off’ manufacturing – lack of human resources Technology systems tend to
Slide 8: High level of entrepreneurship and winning culture
High level of entrepreneurship and winning culture Our companies are strong in observing new opportunities and driven to strive for an excellent performance Governance model Operating model Entrepreneurial culture Plan and rewards Decentralized operating model Drive to win Strategy based on innovati
Slide 9: Prioritizing ESG in our strategy and actions
PRIORITIZING ESG IN OUR STRATEGY AND ACTIONS, DRIVEN TO IMPROVE OUR IMPACT ON SUSTAINABILITY 9 | TKH Investor presentation | August 2022
Slide 10: Unique sustainable portfolio for our customers
Unique sustainable portfolio for our customers Improve sustainability by providing customers with a unique sustainable portfolio and differentiate with a sustainability focus in our positioning Sustainable portfolio examples TKH SMART TKH SMART TKH SMART VISION SYSTEMS MANUFACTURING SYSTEMS CONNECTI
Slide 11: Key non-financial targets
Key non-financial targets Targets mid-term (2025) & long-term (2030) Selection of defined and ongoing actions Environment Strengthen governance by expanding sustainability functions on group level and 100% carbon neutrality own operations by 2030 throughout the organization (scopes 1 & 2) Increase s
Slide 12: Accelerate 2025
“ACCELERATE 2025” STRATEGIC PRIORITIES AND TARGETS 12 | TKH Investor presentation | August 2022
Slide 13: Strategic priorities Accelerate 2025
Strategic priorities Accelerate 2025 Strategic priorities that support the realization of targets Accelerate Increase our market share by unlocking the full potential of our innovations and disruptive organic growth technologies by taking advantage of the market growth driven by relevant megatrends.
Slide 14: Key targets Accelerate 2025
Key targets Accelerate 2025 New program underlines strong foundation and value creation potential. Metric Updated mid-term Realization 2021 Commentary targets 2025 Turnover > € 2 billion € 1.5 billion Target takes into account divestments and acquisitions ROS Focus on technologies with higher added
Slide 15: Roadmap to ROS target Accelerate 2025
Roadmap to ROS target Accelerate 2025 Well positioned to benefit from megatrends, Accelerate 2025 includes actions to boost turnover and ROS by unlocking the full potential of our innovations and disruptive technologies. Areas Bandwidth expected Contribution to Commentary turnover impact ROS improve
Slide 16: Segment reporting
SEGMENT REPORTING 16 | TKH Investor presentation | August 2022
Slide 17: TKH Smart Vision Systems
TKH SMART VISION SYSTEMS We create state-of-the-art Vision systems Turnover and ROS development Portfolio examples in million € 3D 2D 2D Vision & Machine Vision Machine Vision Communication 17 | TKH Investor presentation | August 2022
Slide 18: TKH Smart Vision Systems
TKH SMART VISION SYSTEMS Main turnover contributor Market drivers High demand for automation due to movement towards Industry 4.0 - Vision technology (88%) Hands off – Eyes off manufacturing Continued increased demand for more productivity and improved quality Lack of human resources and rising labo
Slide 19: TKH Smart Manufacturing Systems
TKH SMART MANUFACTURING SYSTEMS We create superior Manufacturing systems Turnover and ROS development Portfolio examples in million € Tire Building Care Industrial systems systems Automation systems 19 | TKH Investor presentation | August 2022
Slide 20: TKH Smart Manufacturing Systems
TKH SMART MANUFACTURING SYSTEMS Main turnover contributor Market drivers Trend towards more local manufacturing to reduce inventories ask Tire Building technology (71%) for integrated tire manufacturing systems to address in a super- efficient way small production batch sizes Scarcity in human resou
Slide 21: TKH Smart Connectivity Systems
TKH SMART CONNECTIVITY SYSTEMS We create advanced Connectivity systems Turnover and ROS development Portfolio examples in million € Subsea Patch robot Fibre Optics connectivity connectivity 21 | TKH Investor presentation | August 2022
Slide 22: TKH Smart Connectivity Systems
TKH SMART CONNECTIVITY SYSTEMS Main turnover contributors Market drivers Energy Energy (34%) Digitalization (36%) Energy transition will require a boost in power generation from renewable sources Public and private ESG ambitions, budgets, and targets drive investments The scarcity of natural resourc
Slide 23: Capital allocation
Capital allocation Cash generated will be reinvested in businesses with above average growth potential and/or distributed to shareholders Investments Dividend and share buy-back in million € 225 TKH aims for an attractive return for its 200 shareholders, which is also reflected in an 175 appropriate
Slide 24: Highlights H1 2022
HIGHLIGHTS H1 2022 24 | TKH Investor presentation | August 2022
Slide 25: Key messages
Key messages Strong turnover growth to € 899.7 million (+24.0%), with organic growth at 15.7% driven by innovative technologies related to megatrends, contributing to energy transition, digitalization and automation. Geopolitical situation, supply chain imbalances and lockdowns in China had limited
Slide 26: Financial highlights H1 2022
Financial highlights H1 2022 H1 H1 Strong turnover growth to € 899.7 million (+24.0%) with (in million € unless stated otherwise) 2022 2021 Δ in % solid growth in all technology segments Turnover 899.7 725.8 +24.0% Organic growth of 15.7% 1) EBITA before one-off income 115.6 84.4 +37.0% Geopolitical
Slide 27: Strategic highlights H1 2022
Strategic highlights H1 2022 TKH is well positioned to benefit from longer term growth Connectivity-assembly factory in Ukraine restarted production in opportunities related to mega trends, supporting future organic April; now running again at full capacity growth Strategically important capex progr
Slide 28: Developments H1 2022 per Smart Technology segment
DEVELOPMENTS H1 2022 PER SMART TECHNOLOGY SEGMENT 28 | TKH Investor presentation | August 2022
Slide 29: Smart Vision systems
Smart Vision systems (in million € H1 H1 Organic turnover growth +4.4%, price effects of +3.2% and FX unless stated otherwise) 2022 2021 Δ in % changes +3.7% Turnover 234.8 210.9 +11.3% Strong order book growth +16.0% to € 161.6 million (compared to EBITA 41.6 37.6 +10.7% year-end 2021) ROS 17.7% 17
Slide 30: Smart Manufacturing systems
Smart Manufacturing systems (in million € H1 H1 Substantial organic turnover growth +34.2 %, price effects of +3.4% unless stated otherwise) 2022 2021 Δ in % and FX changes +0.8% Turnover 256.0 185.0 +38.4% Order book remained at a high level of € 362.0 million (-2.1% EBITA 38.0 19.7 +92.7% compared
Slide 31: Smart Connectivity systems
Smart Connectivity systems (in million € H1 H1 Organic turnover growth +13.1%, price effects of +11.2% and FX -0.1% unless stated otherwise) 2022 2021 Δ in % High order intake with order book growth +17.5% to € 279.2 million Turnover 420.0 338.2 +24.2% (compared to year-end 2021) EBITA before one-of
Slide 32: Financial performance H1 2022
FINANCIAL PERFORMANCE H1 2022 32 | TKH Investor presentation | August 2022
Slide 33: Geographical distribution of turnover
Geographical distribution of turnover Geographical distribution of turnover H1 (in %) 33 | TKH Investor presentation | August 2022
Slide 34: Turnover and added value
Turnover and added value (in million € Turnover growth of +24.0% unless stated otherwise) H1 2022 H1 2021 Δ in % Organic turnover growth of +15.7% Turnover 899.7 725.8 +24.0% Raw materials and All segments contributed to the organic growth - 477.0 - 376.1 subcontracted work Price effects of +7.0% –
Slide 35: Operating expenses and EBITA
Operating expenses and EBITA (in million € Operating expenses increased with +15.8% unless stated otherwise) H1 2022 H1 2021 Δ in % FX changes had an effect of +1.5% Turnover 899.7 725.8 +24.0% Raw materials and Selling expenses almost back to pre-COVID-19 subcontracted work - 477.0 - 376.1 levels –
Slide 36: Items below EBITA
Items below EBITA (in million € One-off income of € 9.3 million from divestment of unless stated otherwise) H1 2022 H1 2021 Δ in % two properties that were held for sale EBITA before one-off income 115.6 12.8% 84.4 11.6% +37.0% and expenses Amortization on certain purchase price allocations One-off
Slide 37: Balance sheet
Balance sheet June 30, Dec. 31, June 30, Dec. 31, (in € million) (in € million) 2022 2021 2022 2021 Intangible assets and goodwill 536.4 537.1 Shareholders' equity 725.5 721.9 Property, plant and equipment 236.7 222.5 Non-controlling interests 0.1 0.1 Right-of-use assets 65.1 68.8 Total group equity
Slide 38: Working capital
Working capital Changes in working capital (in € million) Working capital as percentage of turnover increased to 20.4% versus 11.5% on June 30, 2021 Use of non-recourse factoring June 30, 2022 € 60.1 million December 31, 2021 € 47.9 million June 30, 2021 € 47.5 million Use of supply chain finance Ju
Slide 39: Working capital
Working capital Changes in working capital (in € million) Inventories increased due to temporary building up of inventories to secure supply chains Contract assets increased due to higher production volumes and delays in completion of projects related to shortage of essential components Payables as
Slide 40: Net debt development
Net debt development Change in net debt (in € million) Cash flow from operations, strongly impacted by increase in working capital Net-investments in property, plant and equipment and intangible assets of € 49.7 million, mainly in Investments in R&D Expansion, replacement and upgrade of production c
Slide 41: Free cash flow
Free cash flow H1 H1 H2 The FCF conversion at H1 2022 was (in million €) 2022 2021 2021 2021 2020 2019 affected by developments in working Operating result 1) 97.8 136.9 58.6 78.3 70.9 108.0 capital. Working capital ratios for the periods included in the overview are Depreciation, amortization and 5
Slide 42: Outlook
OUTLOOK 42 | TKH Investor presentation | August 2022
Slide 43: Outlook
Outlook The demand for our technologies remains high, supported by a strong order book. The impact of supply-chain challenges will be more severe in H2. In Smart Vision systems, we expect turnover and EBITA in H2 2022 to be higher than in H1 2022. Part of this growth will come from delayed revenues
Slide 44: | TKH Investor presentation | August 2022
44 | TKH Investor presentation | August 2022