Kontron Ag · XETR:KTN
Kontron — Investor Presentation (September 2024)
22 slides from Kontron's investor presentation, September 2024
Slide 1: Investor Presentation
Investor Presentation September 2024
Slide 2: Who we are
Who we are Leader of Smart Industrial IoT Solutions Focused on large and growing B2B-IoT market 7,200 1.9bn 190m Number of connected IoT devices grows globally by 30% Employees* Revenue (EUR)* R&D Spending (EUR)* Fully integrated technology platform Connecting grids of up to 1m edge devices and serv
Slide 3: The IoT Market
The IoT Market Key Metrics At the heart of many disruptive industries 64 billion $ 254 billion connected IoT devices by Industrial IoT revenues in FY23; 2025 worldwide (from 29 expected 13% CAGR (2024-2028) billion in 2022) High-Speed trains Autonomous Driving 31% growth 21% adoption machines connec
Slide 4: Kontron: Q2 Results & Company Highlights
Kontron: Q2 Results & Company Highlights Results Highlights Company Highlights › Strong improvement in EBITDA › Strong improvement in GM to from EUR 31.3m to EUR 46.5m 42.5% / leap in technologies Many new products in 2024: › Solid revenue growth by 52.9% K-OS, K-Grid, NIS2 compatibility and 6.1% or
Slide 5: KPIs 6M 2024
KPIs 6M 2024 Revenue EBITDA Net Result after NCI (in EUR m) (in EUR m) (in EUR m) + 44.6% + 34.5% 56 Cent 61 Cent + 6,5% 779,9 82,0 37,9 35,6 539,3 60,9 6M 2023 | 6M 2024 6M 2023 | 6M 2024 6M 2023 | 6M 2024 Adjustment of H1 23 revenues due to changed assessment of principal/agent status Order Entry
Slide 6: Kontron Group Balance Sheet
Kontron Group Balance Sheet Equity and liquidity very strong in EUR m 30.06.2024 31.12.2023 in EUR m 30.06.2024 31.12.2023 NON-CURRENT ASSETS 748,1 492,5 EQUITY 607,6 604,0 Tangible assets 224,1 110,4 Accumulated results 469,9 462,8 Intangible assets 165,8 102,4 as of treasury shares -41,9 -43,0 Goo
Slide 7: Massive Design win volume increases to EUR 6bn
Massive Design win volume increases to EUR 6bn Backlog rose to EUR 1.97bn driven by great order intake Design Wins (in EUR bn) 6.01 4.10 3.41 2.97 2.35 2020 2021 2022 2023 H1-24 Backlog (in EUR bn) 1.97 1.69 1.46 1.16 0.93 2020 2021 2022 2023 H1-24 7
Slide 8: Europe: Strong growth in industrial IoT technology
Europe: Strong growth in industrial IoT technology Revenue & EBITDA* Backlog Segment trend › Represent 49% of group EBITDA › Long term healthy customer relations over decades 792,3 45,0 41,2 › biggest division Industrial very profitable › Restructuring in electronics and IT services 33,0 Industrial
Slide 9: Global: Back to normal profitability
Global: Back to normal profitability Sales channel to sell European technology & customizing Revenue & EBITDA* Backlog Segment trend › Represents 15% of Kontron’s revenues and 11% of the EBITDA › Expand to 25% in the next 4 years › Strategy: sales/support channel for the complete Kontron technology
Slide 10: Software + Solutions: Fast growing
Software + Solutions: Fast growing Strongest growing segment with strongest margin Revenue & Segment trend EBITDA* Backlog › 40% of group EBITDA and > 50% of recurring revenues and SLAs (up to 15 years) › Significant Software share -> GM up to 60%, Technology leader Software (susietec® ) 914,4 32,3
Slide 11: Update on Katek integration
Update on Katek integration Product Upgrades Efficiency Improvements e-mobility charger Cost cuttings ✓ Won major contracts in 2024 > EUR 300m – more to follow › Reduced headcount by 500 employees in 2024 ✓ unique IoT technology: reduce electricity cost 50%, double battery lifetime - 150 FTEs reduce
Slide 12: Kontron market positioning
Kontron market positioning Background › Kontron IoT products are part of many vertical markets – Kontron is not dependent on local markets (like screw manufacturers) › Kontron with 4,500 customers in various end markets has low dependency to end markets › Kontron offers intelligence and IoT connecti
Slide 13: Kontron Key Figures
Kontron Key Figures Strong growth in profitability , while P/E ratio historically down in EUR mn 2016 2017 2018 2019 2020 2021* 2022* 2023 2024E Revenues 503.7 882 990.9 1,122.9 1,254.8 1,002.9 1,096.1 1,226 ~ 1,900 Net Income after NCI 20.4 29.4 48.5 49.1 55.6 29.7 55.5 75.3 100 adj. Share price (w
Slide 14: IoT growth accelerated and driven by mega trends
IoT growth accelerated and driven by mega trends Double revenues within 4 years Mega drivers for IoT end devices Smart solutions for vertical markets Security for IoT devices Mission-critical control systems for high-speed trains › Current IoT networks do not comply to NIS2 requirements ✓ European T
Slide 15: History and 2024 forecast
History and 2024 forecast Continuous strong growth – another leap in 2024 expected 2.000 200 1.500 150 Guidance Y-o-y divest IT (in EUR million) 2024 growth 1.000 100 Revenue ~ 1,900 ~ 50% 500 50 EBITDA 190 50% 0 0 2017 2018 2019 2020 2021 2022 2023 2024E Net Income* 100 33% Revenue (left scale) Bac
Slide 16: Why invest in Kontron?
Why invest in Kontron? Profitable long-term growth Engineering excellence › Unmatched R&D power of 3,000 engineers › Present in several high growth markets – disruptive and annual spending of EUR 190m technologies › Cost-efficient in-house engineering resources in CEE (average › Margin improvement o
Slide 17: APPENDIX
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Slide 18: The Kontron Share
The Kontron Share SDAX® & TecDAX® member Shareholder Structure Coverage** Erste Group Buy: EUR 26.50 Hauck & Aufhäuser Buy: EUR 36.50 Ennoconn - 27.5% Jefferies Buy: EUR 29.00 Naneva B.V (PPF Holdings B.V.) - 5.3% Kepler Cheuvreux Buy: EUR 25.00 Kontron Management - 4.9% mwb research (prev. Alster)
Slide 19: Update on ESG: Achievements
Update on ESG: Achievements Recognition of Kontron’s ESG efforts › MSCI: A (previously BBB) › EcoVadis: 50 - rated above industry average › Sustainalytics: 17.9 (low risk) › Moody’s: 38 – improvement by 4 points since 2022 › ISS ESG: C previously C- › Double Materiality Analysis (CSRD requirement) w
Slide 20: Update on ESG: Outlook & Targets
Update on ESG: Outlook & Targets › Corporate Carbon Footprint (Full disclosure on Scope I, II, III) › Climate Risk Analysis › EU Taxonomy alignment › CSRD compliance – Sustainability Statement 2024 (ESRS) based on Double Materiality Analysis › Kontron’s Green Products – communicating our products be
Slide 21: Competitive landscape
Competitive landscape FY 2023 results Leap forward in 2024 Our distinctive competitive advantages Selected competitors in Revenue Region Industrial IoT (in USD m) › Unmatched R&D scale: EUR 190m annual investments Curtiss Wright* 2,845 North America Kontron 2,100 Europe › Cost efficient solutions: E
Slide 22: 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