Kendrion N.v. · EURONEXT:KENDR
Kendrion — Q2 2025 Earnings Presentation
24 slides from Kendrion's earnings presentation, Aug 27, 2025
Slide 1: Q2 and Half Year 2025 Results
Q2 AND HALF YEAR 2025 RESULTS Amsterdam, 27 August 2025
Slide 2: Agenda
AGENDA 1. Introduction 2. Divesting China 3. Financial review and capital return proposal 4. Operational update 5. Outlook 6. Q&A 2
Slide 3: Cautionary Note Regarding Forward Looking Statements
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS Certain statements contained in this presentation constitute forward-looking statements. These statements may include, without limitation, statements concerning future results of operations, the Company's share of new and existing markets, general
Slide 4: 2. Divesting China
KENDRION PRECISION. SAFETY. MOTION. 2. Divesting China -.
Slide 5: Local Management to Purchase Kendrion's China Business
LOCAL MANAGEMENT TO PURCHASE KENDRION’S CHINA BUSINESS KEY TERMS Enterprise value of EUR 70 million on a cash and debt free basis The transaction will be effective upon receipt of the purchase price at Kendrion N.V. which is expected within 3 months from today We will reduce the central servic
Slide 6: Strategic Intent
STRATEGIC INTENT To become a global niche leader in selected industrial market segments, with a focus on sustainably growing revenues and achieving a profitability target of at least 15% EBITDA from 2025. Characteristics of market segments identified: A product opportunity with a clear USP, based
Slide 7: Divesting China: Strategic Rationale
DIVESTING CHINA: STRATEGIC RATIONALE Growth in China is primarily driven by the Automotive segment, which no longer falls within Kendrion’s strategic priorities. The transaction reflects this, at an attractive valuation. The proceeds offer flexibility for capital returns, reinvestment in the I
Slide 8: Indicative Impact of the Transaction (1/2)
INDICATIVE IMPACT OF THE TRANSACTION (1/2) Kendrion pre-transaction Kendrion post-transaction US Other US Other 7% 1% 8% 1% Asia 7% Asia Geographic 23%1 Europe Europe mix 69% 84% Mobility Mobility 21% 16% IB IB 39% 39% Business mix IAC IAC 45% 40% 1. Mainly related to China; 2. Revenue segmented by
Slide 9: Indicative Impact of the Transaction (2/2)
INDICATIVE IMPACT OF THE TRANSACTION (2/2) Kendrion pre-transaction Kendrion post-transaction Total Reported revenue FY2024A Reported revenue FY2024A revenue €301,5m €251,6m Normalized Normalized EBITDA FY2024A Pro-forma EBITDA FY2024A EBITDA €37,0m (12.3%) €33,1m (13.2%) Return on Normalized ROI FY
Slide 10: Strategic Rationale
STRATEGIC RATIONALE 275 The proceeds from the sale will be used to strengthen the balance sheet and to reinvest in the Industrial business. In addition, Kendrion 97 Net debt2 intends to return part of the proceeds to shareholders through: Exceptional one-off dividend of EUR 1 per share EV / EBITDA
Slide 11: 3. Financial review and capital return proposal
3. Financial review and capital return proposal 11
Slide 12: Business Review
BUSINESS REVIEW Q2 and half year results Normalized (in EUR million) Q2 2025 Q2 2024 delta Revenue 79,4 77,7 2% Revenue increases 3% at constant exchange rates EBITDA 12,6 10,5 20% EBITA 8,4 6,8 24% Revenue in Mobility up 15% due to ramping up new projects in China Net profit before amortization
Slide 13: Business Groups
BUSINESS GROUPS Q2 2025 IAC IB Industrial Mobility Stabilizing market circumstances for both Industrial Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 groups Revenue 31,2 32,2 30,6 30,2 61,8 62,4 17,6 15,3 Growth -3% -3% 1% -16% -1% -10% 15% 15% Revenue IAC affected by weakness in specific Curr
Slide 14: Cash Flow and Net Debt
CASH FLOW AND NET DEBT Divestment relates to final settlement payment for the Automotive divestment to Solero Technologies in Q1 2025 One-off cash flow consists of the final restructuring charges paid for the EUR 9 million cost saving programme announced in Q3 2024 Leverage ratio of 2.4 at the
Slide 15: 4. Operational update
KENDRION PRECISION. SAFETY. MOTION.
Slide 16: Industrial Actuators and Controls (IAC)
INDUSTRIAL ACTUATORS AND CONTROLS (IAC) Markets Revenue in HY1 6% lower than HY1 2024, affected by reductions in specific market segment, mainly textile machinery European machine building industry, robotics and automation improved towards the end of Q2 US beverage flow control valve business
Slide 17: IAC – Longer Term
IAC – LONGER TERM Actuators Inductive Heating First biocompatible (bacteria free) pressure High level of inquiries regulator available for anesthesia machines Further standardization and higher flexibility by New automation products (i.e. magnetic gripper) modularization launched successfull
Slide 18: Industrial Brakes (IB)
INDUSTRIAL BRAKES (IB) Markets The market stabilized in the first half of 2025 HY1 2025 + 4% Added value margin up 190 bps Rare Earth Supply Chain The rare earth bottleneck has been resolved: critical shipments from China are delivered Strategic stock covers 6–9 months of demand Regular se
Slide 19: IB – Longer Term
IB –LONGER TERM Medical Industry A pilot customer has been secured for the New Med project The medical campaign in India is gaining traction with initial sample orders received Intralogistics Pilot production of a new brake series for intralogistics is complete, a key step toward series launch
Slide 20: 5. Outlook
KENDRION PRECISION. SAFETY. MOTION.
Slide 21: Outlook 2025
OUTLOOK 2025 We expect trading conditions in the second half of 2025 to remain broadly consistent with those seen in the first half Ongoing weakness in certain markets in Europe, stable demand in the US, and a mixed picture across Asia US trade tariffs a source of uncertainty As a pure-play
Slide 22: 2027 Financial Targets - Unchanged
2027 FINANCIAL TARGETS - UNCHANGED Expectation: 5-8% annual Revenue growth (2024-2027) EBITDA margin 15%-18% from 2025 ROI* 23%-27% from 2027 At least 50% of Dividend Normalized Net Profit *EBITA / invested capital, excluding goodwill and intangibles arising from acquisitions 22
Slide 23: Kendrion
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Slide 24: Kendrion
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