Slide 1: Q4 and Full-Year Results 2020
Q4 AND FULL-YEAR RESULTS 2020 19 FEBRUARY 2021
Slide 2: Agenda
AGENDA 1. COVID-19 2. Business review 3. Strategic and operational update 4. Outlook 5. 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: COVID-19
COVID-19 Kendrion priorities unchanged Keep our employees and their families healthy and safe Safeguard the Group’s continuity so that when the situation stabilises, our prospects are better than ever All COVID prevention measures continue to be enforced (home office, shift separation, face
Slide 5: Kendrion Illness Rate
KENDRION ILLNESS RATE 12-Months rolling average 3.2 3.0 2.8 2.6 2.4 2.2 2.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Kendrion all 2019 Kendrion all 2020 5
Slide 6: 1. Business review
KENDRION PRECISION. SAFETY. MOTION.
Slide 7: Key Figures
KEY FIGURES Normalised (in EUR million) Q4 2020 Q4 2019 delta Q4 organic revenue decrease of 2% for the quarter Revenue 103,1 92,3 12% Industrial and passenger car segment revenue back to pre-COVID levels EBITDA 11,4 7,2 58% Better revenue, cost control and a strong contribution from INTORQ EB
Slide 8: Cash Flow and Financial Position
CASH FLOW AND FINANCIAL POSITION Free cash flow Financial position Record free cash flow before acquisitions of Leverage ratio of 2.3 well below covenant of 4.7 and EUR 31.5 million in 2020 (2019: EUR 25.5 million) down from 2.9 at the end of Q3 2020 Normalised working capital as a percentage
Slide 9: Dividend and Cash Return
DIVIDEND AND CASH RETURN 2016 2017 2018 2019 2020 Actual Actual Actual Actual Proposed Kendrion strives to distribute annual dividend between Dividend per share 0.78 0.87 0.87 - 0.40 35% and 50% of normalised net profit, giving Dividend yield 2.9% 2.2% 4.2% - 2.1% consideration to maintaining a he
Slide 10: Automotive
AUTOMOTIVE 12.0% 2020 car production decreased 21% in Europe, 20% in the 135.2 10.9% US, 4% in China and 16% globally 10.0% 123.6 8.3% 97.0 7.8% 109.1 Revenue decrease of 20% in 2020, 11% in HY2 8.0% 7.2% 6.0% Revenue recovers in HY2 driven by passenger car segment, weak second half year for com
Slide 11: Industrial
INDUSTRIAL 18.0% Revenue increased 24%; organic decrease of 11% excluding INTORQ 16.1% 16.0% 97.7 92.6 14.5% 14.0% 13.3% 5% organic growth in fourth quarter with strong orders in IB and IAC 82.1 12.0% 71.5 11.0% 10.0% Machine building and aviation segments weak; good year for medical and wind
Slide 12: 2. Strategic and operational update
2. Strategic and operational update 12
Slide 13: Kendrion Strategic House
KENDRION STRATEGIC HOUSE STRATEGIC INTENT AUTO BRAKES IAC 'ACES' INTORQ ENERGY ROBOTS CONTROLS TRANSPORT CHINA CHINA CHINA KENDRION GLOBAL ORGANISATION 13
Slide 14: Global Vehicle Production
GLOBAL VEHICLE PRODUCTION Millions of vehicles 93.1 95.1 94.2 88.8 89 88.6 84.7 74.5 2015 2016 2017 2018 2019 2020 2021E 2022E 14 Source: IHS Markit 01/2021
Slide 15: Global Electrified Car Sales
GLOBAL ELECTRIFIED CAR SALES Millions of vehicles 8 Estimated share of global production in 2023: 11% 7 6 5 4 3 2 1 0 2019 2020 2021 2022 2023 PHEV BEV Source IHS Markit 01/2021 15
Slide 16: Nominations 2018 - 2020
NOMINATIONS 2018 - 2020 Automotive - lifetime 2020 2019 2018 100% = EUR 350 million 100% = EUR 320 million 100% = EUR 340 million 40% 35% 39% 60% 65% 61% Independent ICE Independent ICE Independent ICE technology book-to-bill 1.7 book-to-bill 1.25 book-to-bill 1.20 16
Slide 17: Nominations: COVID-Effect
NOMINATIONS: COVID-EFFECT Automotive - lifetime EUR Millions 910 Indepen- dent: ̴ 60% ICE 40% 17
Slide 18: Addressing BEV/PHEV Growth Market
ADDRESSING BEV/PHEV GROWTH MARKET Phantone® AVAS sound platform Introducted the new AVAS Sound Phantone® product line Active sound dissipation in electrified cars outside Sound resembling a classic combustion engine vehicle inside the cabin Phantone® is a one-stop shop solution integrating:
Slide 19: Industrial Brakes: Integration Complete
INDUSTRIAL BRAKES: INTEGRATION COMPLETE IB Former IDS INDUSTRIAL BRAKES Former INTORQ Integration process 3 months Integrated business unit 8 Jan - Formal acquisition of INTORQ 1 Apr - Go live of IB with global organisational structure Smooth and successful integration of INTORQ into the Kendrion
Slide 20: Achievements 2020 - IB
ACHIEVEMENTS 2020 IB Key messages Strong financial performance Inauguration of new production plant in Pune, India Strengthening global sales alignment, underpinned with regional manufacturing Products Excellent global pipeline based on our full line of electromagnetic brakes & clutches Pr
Slide 21: Commercial Traction - IB
COMMERCIAL TRACTION IB Overarching strategy Clear focus on global growth markets Leveraging global presence: each region has established a clear and differentiated growth strategy Investing in IT to transform IB into a more digital enabled organisation Global growth markets Robotics & Automati
Slide 22: Industrial Actuators and Controls: Integration Complete
INDUSTRIAL ACTUATORS AND CONTROLS: INTEGRATION COMPLETE IAC ICS/IMS BU IAC - Industrial Control Systems and Industrial Magnetic Systems - successfully integrated Synergy savings of EUR 1.6 million achieved Market position improved in distinct verticals Production facility in Romania signific
Slide 23: Commercial Traction - IAC
COMMERCIAL TRACTION IAC Actuator products Control products Production started for Industrial Locks for Functional Safety Integrity Level 2 (SIL2) devices like PCS testers, freezers, solutions available centrifuges etc. New drive controller for Automated Guided Competitiveness improved though
Slide 24: Achievements 2020 - China
ACHIEVEMENTS 2020 CHINA Continued Business Growth during COVID-19 period Revenue increase of 72% (including INTORQ Shanghai) Organic revenue growth of 5% (excluding INTORQ Shanghai) INTORQ Integration Completed integration between Kendrion China and INTORQ Shanghai One China IB Managemen
Slide 25: Commercial Traction - China
COMMERCIAL TRACTION CHINA Business review & new market development IAC IB Strong growth in IB market, mainly from wind power application Positive market outlook results from China government’s long term green energy policy. Railway – AC Main Circuit Breaker System Railway/ Subway – Braking Syste
Slide 26: Planned New Factory in SIP, Suzhou
PLANNED NEW FACTORY IN SIP, SUZHOU CHINA Located in SIP, Suzhou Phase I Production Phase I Suzhou Industrial Park (SIP), is Building Warehouse recognized as the most high-tech area in Suzhou Planned floor area: 40,161m2 Phase I Phase I: 27,727m2 Office Building Phase II: 12,434m2 Strong suppor
Slide 27: Progressing on Sustainability
PROGRESSING ON SUSTAINABILITY Target framework 2019-2023 2019-2023 Maintain a responsible product portfolio Products that keep you safe Products that reduce climate impact Products that improve health 27
Slide 28: 3. Outlook
KENDRION PRECISION. SAFETY. MOTION.
Slide 29: Outlook
OUTLOOK The overall sentiment regarding the global economic outlook remains uncertain for the coming period We do expect a gradually improving global economy in the course of 2021 As the longer-term impact of the pandemic remains uncertain, we will continue to focus on our liquidity and cost l
Slide 30: Long-Term Targets
LONG-TERM TARGETS Revenue EBITDA margin Average organic growth at least At least15% in 2025 5% per year ROIC Dividend At least 25% in 2025 Between 35% - 50% of normalised net profit * Invested capital excluding goodwill and intangibles arising from acquisitions 30
Slide 31: 4. Questions & Answers
KENDRION PRECISION. SAFETY. MOTION. _ 4. Questions & Answers
Slide 32: Kendrion
KENDRION PRECISION. SAFETY. MOTION. at