Slide 1: Q4 and Full Year Results 2024
Q4 AND FULL YEAR RESULTS 2024 Amsterdam, 28 February 2025
Slide 2: Agenda
AGENDA 1. Introduction 2. Strategic repositioning 3. Financial review and dividend proposal 4. Operational update 5. ESG 6. Outlook 7. 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. Strategic repositioning
2. Strategic repositioning 4
Slide 5: Divesting Automotive: Strategic Rationale
DIVESTING AUTOMOTIVE: STRATEGIC RATIONALE The automotive industry requires substantial investments in R&D and capex, while offering lower margins compared to industrial markets There are limited growth opportunities in the US and Europe for an automotive Tier 1- 2 supplier of Kendrion’s scale
Slide 6: The New Kendrion: Pro Forma Revenue Mix
THE NEW KENDRION: PRO FORMA REVENUE MIX The New Kendrion External reporting: Mobility* Revenue: 21% IB IAC IB Mobility 39% Profitability Pro forma Industrial revenue mix Mobility FY 2024 IAC 40% * Managed as part of IAC 6
Slide 7: 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 8: Financial Criteria for Business Investment
FINANCIAL CRITERIA FOR BUSINESS INVESTMENT The New Kendrion: Profitability leads growth New business investment decisions are made per project based on a set of financial criteria: Added value margin of at least 50% Steady-state, fully costed EBITDA margin >15% Lifetime ROI >25% Minimum li
Slide 9: Mergers & Acquisitions
MERGERS & ACQUISITIONS Reintroduced as a strategic tool Clear acquisition criteria, disciplined approach: Targeting industrial companies closely aligned with either IB or IAC areas of focus Clear strategic fit, directly supporting Kendrion’s strategic objective of profitability-led growth
Slide 10: Kendrion Organization
KENDRION ORGANIZATION Executive Board Joep van Beurden Jeroen Hemmen General Counsel Group IT Niek de Kort Robin Vleij President Kendrion BG Manager Industrial BG Manager Industrial Asia Brakes Actuators and Controls Telly Kuo Olaf Detlef Robert Lewin 10
Slide 11: 3. Financial review and dividend proposal
3. Financial review and dividend proposal 11
Slide 12: Business Review
BUSINESS REVIEW Q4 and full year results Normalized (in EUR million) Q4 2024 Q4 2023 delta Revenue 76,0 70,5 8% Chinese Mobility project ramps drive 8% revenue increase EBITDA 7,5 7,9 -5% EBITA 3,3 4,0 -18% Profitability affected by inventory reductions and lower contributions Net profit before
Slide 13: Business Groups
BUSINESS GROUPS Q4 2024 IAC IB Industrial Mobility Q4 24 Q4 23 Q4 24 Q4 23 Q4 24 Q4 23 Q4 24 Q4 23 Continuing weakness in global industrial production cause 7% Revenue 27,7 29,7 27,8 26,0 55,5 55,7 20,5 14,8 revenue decrease in IAC in Q4 IB’s 7% growth in Q4 indicates slight recovery on a weak R
Slide 14: Cash Flow and Net Debt
CASH FLOW AND NET DEBT Good cash conversion of continued operations Free cash flow discontinued operations affected by termination receivables factoring and timing of divestment Leverage ratio of 2.7 at the end of Q4 and 2.4 when pro forma including final outstanding payment Automotive divestm
Slide 15: Dividend Proposal
DIVIDEND PROPOSAL 2018 2019 2020 2021 2022 2023 2024 Policy and financial target is a pay out of at least 50% of normalized Actual Actual actual actual actual actual proposal net profit before amortization Dividend per 0,87 - 0,40 0,69 0,72 0,45 0,45 share Historic pay-out ratio has been consist
Slide 16: 4. Operational update
KENDRION PRECISION. SAFETY. MOTION.
Slide 17: Industrial Actuators and Controls (IAC)
INDUSTRIAL ACTUATORS AND CONTROLS (IAC) FY 2024 Actuators Controls Medical: new products based on biocompatible 3T several high-power engineering projects won – materials in development mechanical engineering supported by IAC Warehouse automation: product portfolio Malente expanded, and new cu
Slide 18: IAC - 3T FY 2024
IAC - 3T FY 2024 Revenue stable in 2024 Growth focus clearly defined into motion control and power electronics applications Expansion into DACH region successful, first contract won and more opportunities in pipeline Key market segments High complex machinery Testing and Medical technology Sec
Slide 19: IAC Mobility Set Up Sibiu / Malente
IAC MOBILITY SET UP SIBIU / MALENTE Set up: All EU based mobility products produced in Sibiu Engineering support: Malente Finance and HR Support: Kendrion Industrial Sibiu Actions implemented: Full segregation from former Kendrion Automotive (Solero) organization Restructuring of R&D sound
Slide 20: Industrial Brakes FY 2024
INDUSTRIAL BRAKES FY 2024 Revenue development Market has stabilized following the severe market slowdown of H2 2023 H1 2024 - 22% H2 2024 + 7% Improving profitability Added-Value: a variety of measures have been implemented with existing customers and vendors to increase added value – more t
Slide 21: IB – Longer Term
IB – LONGER TERM More pro- active sales orientation, with a focus on developing profitable niche markets, including web- based selling, telephone acquisition, and social media engagement Exploring new potential in profitable niche markets such as lightweight robotics in Europe, the AGV wheel dri
Slide 22: China - Industrial FY 2024
CHINA - INDUSTRIAL FY 2024 IB IAC Wind Power: Wind Turbines Energy Technology: Circuit Breaker Commercial focus Prioritize existing large markets like Wind power, and Energy distribution Develop selected new markets, like medical dialysis, ventilation machines, robotics and motion control EV: El
Slide 23: China - Mobility FY 2024
CHINA - MOBILITY FY 2024 eCDV / eCDA iCDA Active Damping Anticipated fast Growth in China - EV market China has become the largest and fast-growing EV market in the world Nominated by leading tier 1 players in suspension system in EV market, Air Spring including Air Spring and Active Damping mod
Slide 24: 5. ESG
KENDRION PRECISION. SAFETY. MOTION. 5. ESG ? 24
Slide 25: CSRD Compliance
CSRD COMPLIANCE The EU - CSRD directive has not yet been passed into law in the Netherlands This is a source of confusion for all companies, and for the auditors who need to provide ‘limited assurance’ on the CSRD disclosures Kendrion will comply with what is currently expected to pass – this
Slide 26: 2024-2028 ESG Plan
2024-2028 ESG PLAN • Achieve a further 70% reduction in CO2 emissions • Establish reporting frameworks for Scope 1, 2 & 3 reporting Natural Capital • Implement gender a diversity ambition at Business Group level for indirect staff, aiming for a 25% improvement over time with a minimum threshold of 3
Slide 27: Reduction CO2 Emissions
REDUCTION CO2 EMISSIONS CO2 emission in tons 14000 Energy consumption in CO2 emission in 12000 Year Reduction % kWh tons 10000 2015 39.968.632 12.321 Baseline 8000 2018 36.607.830 7.322 40,6% 6000 2023 34.255.036 6.231 14,9% Target 2028 4000 2028 Estimate 10.276.511 Estimate 1.869 Target 70% 2000 0
Slide 28: 6. Outlook
KENDRION PRECISION. SAFETY. MOTION.
Slide 29: Outlook 2025
OUTLOOK 2025 We expect the economic conditions in the first half of 2025 to mirror those of 2024 Ongoing challenges in Europe, the election of a more business- friendly government in Germany a positive China is implementing measures to stimulate its economy Impact of anticipated US trade tar
Slide 30: 2027 Target Framework
2027 TARGET FRAMEWORK The new Kendrion financial targets Existing 2020−2025 New 2025−2027 Target: 5% annual organic Expectation: 5-8% annual Revenue growth (2019-2025) growth (2024-2027) EBITDA margin At least 15% from 2025 15%-18% from 2025 ROI* At least 25% from 2025 23%-27% from 2027 30%-50% of A
Slide 31: Kendrion
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Slide 32: Kendrion
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