Slide 1: Q2 and Half Year Results 2024
KENDRION W & lu z= S ce = Eu = i EURONEXT Q2 AND HALF YEAR RESULTS 2024 Webcast, 21 August 2024 #8 euronext F Amsterdam #4 curonexr ‘ Amsterdam
Slide 2: Agenda
AGENDA 1. Business review 2. Strategic and operational update 3. Outlook 4. 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: 1. Business review
KENDRION 1. Business review PRECISION. SAFETY. MOTION.
Slide 5: Business Review: Q2 and HY1 results continued operations
BUSINESS REVIEW Q2 and HY1 results continued operations Q2 2024 Q2 2023 delta Q2 revenue decrease of 7% at constant rates of exchange Revenue 77,7 83,9 -7% Continuing weak market circumstances result in industrial segment Normalized EBITDA 1) 10,6 11,9 -11% revenue decreases with 10% yoy Normali
Slide 6: Business Review: Q2 and HY1 total operations
BUSINESS REVIEW Q2 and HY1 total operations Q2 2024 Q2 2023 delta Q2 revenue decrease of 6% at constant rates of exchange Revenue 128,6 136,9 -6% 90 bp improvement Added Value margin and EUR 1,7 m lower operating Normalized EBITDA 1) 13,9 14,0 -1% costs drive EBITDA margin improvement Normalized
Slide 7: Industrial Activities
INDUSTRIAL ACTIVITIES IAC IB Industrial Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Strong medical, aviation and control technology largely Revenue 32,2 33,2 30,2 36,0 62,4 69,2 compensates weak general manufacturing markets in IAC Revenue growth -3% 10% -16% 0% -10% 5% IB reports 7% revenue improvement
Slide 8: Automotive Activities
AUTOMOTIVE ACTIVITIES Continued Discontinued Automotive 2% lower revenues compared to strong Q2 2023 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Revenue 15,3 14,7 50,9 53,0 66,2 67,7 Volumes and prices drive 5% increase in HY1 revenue Profit margin expansion driven by improved Added Value Revenue grow
Slide 9: Cash Flow and Net Debt
CASH FLOW AND NET DEBT Break even normalized cash flow in HY1, compared with -/- EUR 12.5 million in HY1 2023 (including EUR 6.7 million related to the China building) EUR 10 million reduction in working capital compared to HY1 2023 drive EUR 11.2 reduction in net debt EUR 4.2 million cash div
Slide 10: 2. Strategic and operational update
2. Strategic and operational update 10
Slide 11: Manufacturing PMI
MANUFACTURING PMI PMI remains below long-term average, indicating weaker global growth in HY1 2024 11 [Internal]
Slide 12: Current Economic Climate
CURRENT ECONOMIC CLIMATE Eurozone economy continues to be slow H1 growth of 0.3% in 2024, expectation FY 2024 of 0.7%, compared to 0.8% over FY 2023 Business activity in Germany lackluster, S&P Global flash composite purchasing managers’ is at 43.2 (above 50 represents growth) China still re
Slide 13: Divesting Automotive: Strategic Rationale
DIVESTING AUTOMOTIVE: STRATEGIC RATIONALE Automotive industry requires substantial investments in R&D and capex, while offering lower margins compared to industrial markets Limited growth available in US and Europe for an Automotive Tier 1-2 of Kendrion’s scale Resource re-allocation to IB, IA
Slide 14: Indicative Revenue Mix Impact
INDICATIVE REVENUE MIX IMPACT Kendrion pre-transaction Kendrion post-transaction Automotive divested: IB IAC addition 40% 25% 17% IB 42% Reported Pro-forma Revenue mix Revenue mix FY2023 FY2023 IAC today 25% IAC today Sound & Electronics 41% 8% Automotive China 2% KENDRION company presentation 14
Slide 15: Industrial Brakes
INDUSTRIAL BRAKES HY1 revenue down 22% as the market slow-down from H2 2023 continued, - some improvement in Q2 2024 compared to Q1 Several major market segments running stable on lower level: industrial robots, general machinery automation, wind energy Demand from key customers stable – IB ma
Slide 16: Industrial Actuators and Controls
INDUSTRIAL ACTUATORS AND CONTROLS HY1 revenues down 3% in line with expectations. Markets trending up: aircraft products, electrical distribution, beverage dispensing valves, laser shutters, inductive heating systems Markets trending stable on low level: textile machinery, general machinery au
Slide 17: China
CHINA HY1 revenues up 4% (7% in CNY）despite weakness in the market for Industrial Brakes EBITDA up 100% vs. 1H 2023, after new factory integration HY1 Automotive revenue almost tripled (183%) as some of our new projects started to ramp up Good traction in IAC on both existing customers and n
Slide 18: 3. Outlook
KENDRION PRECISION. SAFETY. MOTION. -» = 3. Outlook
Slide 19: Outlook
OUTLOOK For the second half of 2024, we expect a similar economic climate as in the first half Europe: slow recovery in a weak trading environment, particularly in Germany US stable, depends on timing of interest rate cuts China, within striking distance of achieving their goal of 5% economi
Slide 20: 4. Questions & Answers
KENDRION PRECISION. SAFETY. MOTION.
Slide 21: Kendrion
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