Slide 1: Q2 and HY1 2020 Results
Q2 AND HY1 2020 RESULTS Amsterdam, 18 August 2020 1
Slide 2: Agenda
AGENDA COVID-19 Business review Operational update Outlook 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
Slide 5: COVID-19 Priorities
COVID-19 PRIORITIES 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 5
Slide 6: COVID-19 Measures
COVID-19 MEASURES Working from home for employees for whom this is possible Strict separation between production shifts Professional cleaning and disinfecting of relevant surfaces between shifts Maximising social distance between colleagues Canteens closed Temperature screening Mandato
Slide 7: Kendrion Employees COVID-19 Cases
KENDRION EMPLOYEES COVID-19 CASES 18 August 2020 Fatalities: 0 Current hospitalisations: 1 Current active cases: 2 Recovered cases: 7 Number of secondary infections: 0 7
Slide 8: Global Passenger Car Production and Sales
GLOBAL PASSENGER CAR PRODUCTION AND SALES Automotive Car production HY1 2020 Car sales HY1 2020 9% 4% HY1 2020 HY1 2019 % change YOY Global Europe China US Global 31.0 45.1 -31.3% -3% -17% -15% Europe 6.8 11.3 -39.8% -22% -22% -24% -26% China 9.3 11.5 -19.1% -34% -33% -44% North America 5.1 8.5 -40.
Slide 9: Global Purchasing Manager Index
GLOBAL PURCHASING MANAGER INDEX 9
Slide 10: Business review
KENDRION PRECISION. SAFETY. MOTION.
Slide 11: Group Financial Overview Q2 and HY1 2020
GROUP FINANCIAL OVERVIEW Q2 and HY1 2020 Normalised (in EUR million) Q2 2020 Q2 2019 delta Revenue 85.1 109.0 -22% Organic revenue decrease of 34% due to COVID-19 EBITDA 8.1 12.7 -36% EBITA Significant 310bp increase in added value margin due to increased 1.7 6.7 -75% industrial revenue share Ne
Slide 12: Group Financial Overview: Cash Flow and Financial Position
GROUP FINANCIAL OVERVIEW Cash flow and financial position Free cash flow Financial position Normalised free cash flow of -/- EUR 0.2 million in first Solvency of 43.3% at the end of HY1 (HY1 2019: 46.9%) half year (HY1 2019 -/- EUR 2.7 million) Leverage ratio of 2.6 against financial covenant
Slide 13: Automotive HY1 2020
AUTOMOTIVE HY1 2020 160 12.0% Global car production down 31% in the first half year due to 135.3 10.8% COVID-19 140 123.6 10.0% 120 Automotive revenue sharply lower in April and May with strong 8.3% 97.1 7.8% 8.0% recovery in June, albeit still below pre-COVID-19 levels 100 80 6.0% V-shaped re
Slide 14: Industrial HY1 2020
INDUSTRIAL HY1 2020 120 16.0% Industrial revenue increased 19% 97.7 14.5% 100 13.1% 14.0% Organically (excluding INTORQ) industrial revenue decreased 12.0% 14% 82.1 80 71.5 10.9% 10.0% Limited impact COVID-19 on Industrial Brakes in HY1 and strong contribution from INTORQ, especially in China
Slide 15: Operational update
Operational update
Slide 16: Kendrion Strategic House
KENDRION STRATEGIC HOUSE STRATEGIC INTENT AUTO BRAKES IAC 'ACES' INTORQ ENERGY ROBOTS CONTROLS TRANSPORT CHINA CHINA CHINA KENDRION GLOBAL ORGANISATION 16
Slide 17: Automotive
AUTOMOTIVE In Europe and in the US, passenger car purchases came to an almost complete standstill in April and May, significantly affecting Automotive revenue Effective, laser focused and relentless cost control Continuous investment in ‘smart’ products for automotive, with emphasis on Autonom
Slide 18: Industrial Brakes
INDUSTRIAL BRAKES Q2 COVID-19 effect on Industrial Brakes limited: revenue ahead of original budget Tailwind from strong orders in the wind power segment in China, driven by Government subsidies for clean energy INTORQ integration mostly complete Realisation of the targeted EUR 2.0 million r
Slide 19: Industrial Actuators and Controls
INDUSTRIAL ACTUATORS AND CONTROLS Q2 COVID-19 impact mixed: revenue decreased in textile machinery and aviation, medical segment and infrastructure being more stable Greater than normal backlog as a result of COVID-19 related supply chain interruptions The IMS and ICS integration progressing w
Slide 20: China
CHINA Strong second quarter on the back of a ‘V-shaped’ recovery Current volumes of passenger cars sold back at pre-pandemic levels China now well over 10% of Group revenue Strong pipeline in Automotive Group, Industrial Brakes and Industrial Actuators and Controls Continuous investment in
Slide 21: Progress on Sustainability: Natural Capital – Waste Management
PROGRESS ON SUSTAINABILITY Natural capital – waste management 10% reduction of waste total compared to 2018 Distribution hazardous and non-hazardous remains unchanged 8% hazardous 92% non-hazardous Hazardous waste and non-hazardous waste top-3 remains unchanged Hazardous: cooling fluid,
Slide 22: Outlook
KENDRION PRECISION. SAFETY. MOTION.
Slide 23: Outlook
OUTLOOK The global economy is severely impacted by the effects of the COVID-19 pandemic Kendrion expects this to continue for the remainder of 2020 and possibly into 2021 Medium to long-term, we continue to see growth opportunities in our focus areas of Automotive, Industrial Brakes and China
Slide 24: Capital Markets Day
CAPITAL MARKETS DAY 10 September 2020, 11:00 am (CET) Comprehensive strategic update New medium term financial targets 24
Slide 25: Questions & Answers
KENDRION PRECISION. SAFETY. MOTION. Questions & Answers
Slide 26: Thank You
THANK YOU