TKH Group N.V. Cert · EURONEXT:TWEKA
TKH Group N.V. Cert — TKH Group — Investor Presentation (November 2023)
43 slides from TKH Group N.V. Cert's investor presentation, November 2023
Slide 1: TKH Group NV General Investor Presentation November 2023
TKH GROUP NV GENERAL INVESTOR PRESENTATION NOVEMBER 2023
Slide 2: Important Information – Disclaimer
IMPORTANT INFORMATION – DISCLAIMER Cautionary note regarding forward looking statements Statements included in this presentation that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic perfor
Slide 3: Market Update Q3 2023
Market Update Q3 2023 ▪ Amidst challenging market circumstances, performed well Turnover € 458.5m EBITA € 54.3m during Q3 2023 Q3 2022: € 451.2m Q3 2022: € 55.2m + 1.6% organically - 1.7% ▪ Added value increased, effect of sales price increases and easing of supply chain constraints ▪ Smart Manufact
Slide 4: Market Update Q3 2023: Strong strategic progress
Market Update Q3 2023: Strong strategic progress Closing divestment of cable distribution Framework agreement awarded for the activities TKH France (one-off net profit single-source supply of inter-array of €20m) cables for all of Vattenfall’s European windfarms in the coming years Started second €2
Slide 5: Content
Content 1 Profile 2 Accelerate 2025 Strategy 3 Capital Allocation & Strategic Priorities 4 Track Record 5 Reporting Segments 6 Highlights and Financial Performance H1 2023 7 Outlook 5 TKH GENERAL INVESTOR PRESENTATION - NOVEMBER 2023
Slide 6: Profile
PROFILE
Slide 7: TKH – Technology leader in high growth markets
TKH – Technology leader in high growth markets SMART Technologies built on innovation Together with our customers, we develop innovative technologies that make the world more efficient and more sustainable SMART VISION SYSTEMS SMART MANUFACTURING SYSTEMS SMART CONNECTIVITY SYSTEMS TKH WORLDWIDE NORT
Slide 8: Smart Technologies
Smart Technologies Specialized in the development of innovative, client-centric systems that drive success in automation, digitalization, and electrification By integrating hardware, software, and customer-focused insight, our smart technologies provide unique answers to client challenges Creating o
Slide 9: Built on innovation
Built on innovation Innovations as % of turnover 30% OF OUR TECHNOLOGY MORE THAN 15% PROPOSITION IS TURNOVER REALIZED 20.6% 25% SOFTWARE DRIVEN HONDERDEN BY INNOVATIONS 20% 15.0% 15% Innovations: defined as technologies introduced in last 24 months 10% 5% >750 FTE IN R&D AND 0% 2012 2013 2014 2015 2
Slide 10: In high growth markets
In high growth markets Ratio Job vacancies per unemployed (US & UK) LACK OF LABOUR 10 AUTOMATION PRODUCTIVITY RELIABILITY 5 UK Industry 4.0 – ‘hands-off, ACCURACY eyes-off’ manufacturing US 0 MOBILITY In billions Connected devices worldwide from 2022 – 2030 30 DIGITALIZATION SPEED CLOUD COMPUTING 20
Slide 11: Leading market positions
Leading market positions TKH SMART TKH SMART TKH SMART VISION SYSTEMS MANUFACTURING SYSTEMS CONNECTIVITY SYSTEMS VISION TIRE BUILDING ENERGY DIGITALIZATION 3D 2D Security Vision Offshore Onshore GEOGRAPHICAL MARKETS GLOBAL MARKET STRONG MARKET GLOBAL MARKET GLOBAL MARKET GROWING MARKET MARKET LEADER
Slide 12: Accelerate 2025 Strategy
ACCELERATE 2025 STRATEGY
Slide 13: Accelerate 2025: Roadmap to turnover and ROS target
Accelerate 2025: Roadmap to turnover and ROS target Unlocking the full potential of our leading technologies Areas Contribution to turnover Contribution to Commentary to 2025 targets target > € 2 billion ROS improvement target > 17% 1) ORGANIC GROWTH/ Scale effect -due to organic growth- on opex and
Slide 14: Accelerate 2025: Roadmap to turnover & ROS Targets
Accelerate 2025: Roadmap to turnover & ROS Targets SMART VISION SMART MANUFACTURING SMART CONNECTIVITY Strategic Investment 2025 Plan Organic Growth Organic Growth Turnover Acquisitions > €2.0 bn Organic Growth ▪ Topline organic growth on the back ▪ Topline organic growth on the back of ▪ Topline or
Slide 15: Priority on ESG
15 Priority on ESG Key non-financial KPIs CO2e FOOTPRINT % WASTE RECYCLING SATISFACTION SCORE CODE OF SUPPLY BEING RESPONSIBLE REDUCTION (scope 1 & 2) Target < 5% waste Customers Signed by suppliers of most relevant raw Compared to 2019 materials Target Average score above Target > 90% strategic sup
Slide 16: Priority on ESG
16 Priority on ESG TKH has a broad portfolio of products and solutions that are aligned with the Sustainable Development Goals (SDGs) defined by the United Nations 69% of turnover linked to SDGs 16 TKH GENERAL INVESTOR PRESENTATION - NOVEMBER 2023
Slide 17: Capital Allocation & Strategic Priorities
CAPITAL ALLOCATION & STRATEGIC PRIORITIES
Slide 18: Capital allocation
Capital allocation CAPITAL EXPENDITURE ACQUISITIONS & DIVESTMENTS In million € In million € Strategic Investments 150 2023: PP&E capex 150 Acquisitions that 125 of € 200 million of strengthen our 100 which € 160 from portfolio; divestments 100 Strategic Investment that do not contribute 50 75 Progra
Slide 19: Strong progress in our strategic positioning
Strong progress in our strategic positioning TKH VISION DIGITAL TRANSFORMATION • Closing divestment of cable distribution activities TKH France (one-off net profit of €20m) • Opening and ramp-up of fibre optic cable Further positioned the TKH Vision • Upscaling and upskilling of shared and specialty
Slide 20: €200m Strategic Investments progressing well
€ 200m Strategic Investments progressing well Production capacity expansions on schedule to meet increased demand in automation, digitalization, and electrification Single source framework contract for 3y+5y € 150 million investment Offshore: Start serial established with Vattenfall for Europe and E
Slide 21: Track Record
TRACK RECORD
Slide 22: TKH's evolution into today's technology leader
TKH’s evolution into today’s technology leader DEVELOPMENT OF TURNOVER R&D EXPENDITURE In million € In million € 2.000 80 5% 1.800 1.600 70 1.400 4% 60 1.200 1.000 50 3% 800 40 600 2% 400 30 200 20 0 1% 10 0 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 H1 23 LTM R&D expenditure As % of turnover S
Slide 23: Our track record
Our track record TURNOVER ROS ROCE DIVIDEND PER EARNINGS PER SHARE SHARE* in million € 2.000 14% 25% € 2,00 € 4,00 1.750 12% 20% € 3,00 1.500 € 1,50 10% 1.250 15% 8% € 2,00 1.000 € 1,00 6% 10% 750 € 1,00 4% 500 € 0,50 5% 250 2% € 0,00 0 0% 0% € 0,00 2002 2012 2022 2002 2012 2022 2002 2012 2022 2002
Slide 24: Reporting Segments
REPORTING SEGMENTS
Slide 25: Smart Vision Systems
Smart Vision Systems HIGHLIGHTS Q3 2023 (in million € unless stated otherwise) H1 2023 H1 2022 Δ in % Q3 2023 • The turnover at Security Vision remained stable in a market with short ordering Turnover 250.2 234.8 +6.6% - 6.9% vs Q3 2022 cycles Added value 59.6% 58.1% • The turnover at 2D and 3D Mach
Slide 26: Smart Vision systems
Smart Vision systems PROPOSITION MARKETS (amounts in billion €) MARKET POSITIONS 2D & 3D MACHINE VISION Area scan, SECURITY VISION 2D & 3D MACHINE VISION 3D MACHINE VISION Line scan, 3D, Embedded, High-speed, 11.6% SWIR, UV, Polarized CAGR 29.5 Factory Battery SECURITY VISION Video surveillance, 0.5
Slide 27: Smart Manufacturing Systems
Smart Manufacturing Systems HIGHLIGHTS Q3 2023 (in million € unless stated otherwise) H1 2023 H1 2022 Δ in % Q3 2023 • Tire Building showed strong turnover growth, driven by the easing of component Turnover 263.3 256.0 +2.8% +28.0% vs Q3 2022 shortages and a continued strong order book, Added value
Slide 28: Smart Manufacturing systems
Smart Manufacturing systems PROPOSITION MARKET DRIVERS MARKET POSITIONS TIRE BUILDING SYSTEMS Passenger TIRE BUILDING TIRE BUILDING & Truck tire building machines, Bead Increasing number of units in stock with 7% Increased complexity: continuous increase assembly 1 annual increase 2 of rim size lead
Slide 29: Smart Connectivity Systems
Smart Connectivity Systems HIGHLIGHTS Q3 2023 (in million € unless stated otherwise) H1 2023 H1 2022 Δ in % Q3 2023 • As expected, Smart Connectivity systems’ turnover decreased; Q3 turnover included the Turnover 451.8 420.0 +7.8% - 7.8% vs Q3 2022 contribution of the recently divested TKH France Ad
Slide 30: Smart Connectivity systems – Digitalization
Smart Connectivity systems – Digitalization PROPOSITION MARKET MARKET POSITIONS DIGITALIZATION Fibre Optics DIGITALIZATION DIGITALIZATION connectivity systems - Turnkey cable % of homes passed systems, Closures, Street cabinets, Belgium 12% Access chambers, Multi tube cables, Germany 22% UK 27% Rack
Slide 31: Smart Connectivity systems – Electrification
Smart Connectivity systems – Electrification PROPOSITION MARKETS MARKET POSITIONS ELECTRIFICATION Offshore turnkey ONSHORE ONSHORE high voltage array cabling and accessories, Onshore turnkey medium Threat of transport limitation and high voltage energy cable systems MARKET LEADER GRWOING MARKET Onsh
Slide 32: Highlights & Financial Performance H1 2023
HIGHLIGHTS & FINANCIAL PERFORMANCE H1 2023
Slide 33: Continued growth underpins strong strategic positioning
Continued growth underpins strong strategic positioning Highlights H1 2023 Turnover € 947.6m EBITA* € 119.8m ROS* 12.6% Adjusted net profit** H1 2022: € 899.7m H1 2022: € 115.6m H1 2022: 12.8% € 67.7m + 5.0% organically + 3.6% H1 2022: € 70.5m - 4.0% ROCE 19.9% Order book € 999.9m Innovations 15.0%
Slide 34: Added value increased across all segments
Added value increased across all segments SMART VISION SMART MANUFACTURING SMART CONNECTIVITY TOTAL + 6.6% + 2.8% + 7.6% + 5.3%* TURNOVER & AV 59.6% TURNOVER & AV 49.5% 41.1% 49.1% 58.1% 48.7% 38.5% 47.0% 234.8 250.2 263.3 451.8 899.7 947.6 256.0 420.0 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023
Slide 35: Geographical distribution of turnover
Geographical distribution of turnover NETHER- LANDS EUROPE H1 H1 (OTHER) 2023 2022 NORTH Netherlands 25.7% 23.5% AMERICA Europe (other) 42.5% 43.0% ASIA Asia 16.2% 17.8% North America 11.5% 12.8% Other 4.1% 2.9% Smart Vision systems OTHER Smart Manufacturing systems Smart Connectivity systems 35 TKH
Slide 36: Profit and Loss Account
Profit and Loss Account € million H1 2023 H1 2022 Δ in % € million Turnover Turnover 947.6 899.7 + 5.3% H1 2022 899.7 Raw materials and Acquisitions 5.0 0.6% - 482.4 - 477.0 subcontracted work Currency translation - 2.4 - 0.3% Added value 465.2 49.1% 422.7 47.0% + 10.1% Price effects 37.4 4.1% Opera
Slide 37: Profit and Loss Account
Profit and Loss Account € million H1 2023 H1 2022 Δ in % Divestment of the remaining stake in CCG resulted in a profit of € 36.2 million in Q1 2023 Turnover 947.6 899.7 + 5.3% Raw materials and - 482.4 - 477.0 subcontracted work Added value 465.2 49.1% 422.7 47.0% + 10.1% Operating expenses 345.4 36
Slide 38: Balance sheet
Balance sheet June 30, Dec. 31, (in € million) Changes in working capital (in € million) 2023 2022 Intangible assets and goodwill 570.7 533.8 Property, plant and equipment 358.8 295.0 Right-of-use assets 72.8 75.3 Other non-current assets 27.2 26.1 Total non-current assets 1,029.5 930.2 Current asse
Slide 39: Balance sheet
Balance sheet June 30, Dec. 31, (in € million) Change in net debt (in € million) 2023 2022 Intangible assets and goodwill 570.7 533.8 Property, plant and equipment 358.8 295.0 Right-of-use assets 72.8 75.3 Other non-current assets 27.2 26.1 Total non-current assets 1,029.5 930.2 Current assets 876.8
Slide 40: Free cash flow
Free cash flow H1 H1 H2 FCF conversion can be affected by developments in in million € unless stated otherwise 2023 2022 2022 2022 2021 2020 working capital. Working capital ratio for the period- end included in the overview are: Operating result 93.3 97.8 92.4 190.2 136.9 70.9 2019: 13.0% Depreciat
Slide 41: Outlook
OUTLOOK
Slide 42: Outlook
Outlook Smart Vision systems Smart Manufacturing systems Smart Connectivity systems Smart Vision systems continues to be The outlook for Smart Manufacturing As communicated earlier, Smart faced with strong destocking effects systems has improved, with turnover Connectivity systems H2 2023 EBITA and
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