Kendrion N.V. · EURONEXT:KENDR

Kendrion — Q2 2022 Earnings Presentation

26 slides from Kendrion's earnings presentation, Aug 24, 2022

  1. Slide 1: Q2 and Half Year Results 2022

    Q2 AND HALF YEAR RESULTS 2022 Amsterdam, 24 August 2022

  2. Slide 2: Agenda

    AGENDA 1. Business review 2. Strategic and operational update 3. Outlook 4. Q&A 2

  3. 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

  4. Slide 4: 1. Business review

    KENDRION PRECISION. SAFETY. MOTION. 1. Business review

  5. Slide 5: Key Figures

    KEY FIGURES Normalized (in EUR million) Q2 2022 Q2 2021 delta Revenue 126.9 119.3 6%  Organic revenue increased by 2% at constant rates of exchange EBITDA 13.7 15.8 -13%  Revenue impact China lockdowns estimated at EUR 3.5 million (3% of Group) EBITA 7.9 9.8 -19% Net profit before amortization 5.3

  6. Slide 6: Cash Flow and Financial Position

    CASH FLOW AND FINANCIAL POSITION Free cash flow Financial position  Operating cash flow increased by EUR 3.6 million to EUR  Net debt of EUR 145.6 million, EUR 8.6 million above Q1 mainly 8.9 million in HY1 2022 due to cash portion of the optional dividend  Free cash flow of EUR 7.6 million negat

  7. Slide 7: Industrial

    INDUSTRIAL  Organic revenue growth of 16%; China lockdowns impact estimated at ~2% of Industrial revenue  Industrial Brakes revenue increase of 19% to EUR 73.7 million  Industrial Actuators and Controls revenue increase of 25%, or 13% when excluding 3T  Improved nominal and underlying added valu

  8. Slide 8: Automotive

    AUTOMOTIVE  Ongoing supply chain shortages continue to supress global (-/-2%) and European (-/-12%) car production  Volumes decrease as nominal revenue is affected by positive exchange rate effects and significant sales price inflation  Rising input price increases successfully passed on to custo

  9. Slide 9: 2. Strategic and operational update

    2. Strategic and operational update 9

  10. Slide 10: Global Purchasing Manager Index

    GLOBAL PURCHASING MANAGER INDEX Source: IHS Markit 10

  11. Slide 11: Electrification continues to accelerate

    ELECTRIFICATION CONTINUES TO ACCELERATE Million units 93 0 % CAGR 87 74 75 72 71 71 71 69 66 -4 % CAGR 25 21 17 46 % CAGR 14 7 10 2 1 5 2 3 3 4 5 5 5 1 0 2 1 33 % CAGR 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 ICE BEV PHEV Global car production Source: IHS Markit May 22 11

  12. Slide 12: Kendrion Strategic House

    KENDRION STRATEGIC HOUSE STRATEGIC INTENT AUTO BRAKES IAC Growth Growth Cash engine 'ACES' ROBOTS CONTROLS WINDPOWER ENERGY LOGISTICS TRANSPORT CHINA CHINA CHINA Growth KENDRION GLOBAL ORGANIZATION 12

  13. Slide 13: Industrial Brakes

    INDUSTRIAL BRAKES  HY1 organic growth of 19%, despite the COVID-related shutdown of our brake factory in Shanghai  Stable gross margins: effectively passing on raw material price increases  Investments in R&D and production capacity, anticipating further organic growth  Continued strong traction

  14. Slide 14: Industrial Actuators and Controls

    INDUSTRIAL ACTUATORS AND CONTROLS  HY1 organic growth of 25%; 13% when excluding 3T  Stable gross margins; successfully passing on of raw material price increases  Delivery constraints of semiconductor and various other input materials  Strong order book and continued interest in new products su

  15. Slide 15: Automotive

    AUTOMOTIVE  Difficult trading environment: semiconductor shortages, demand volatility, and OEM delay tactics with price increase mechanisms  Stable gross margins; effectively passing on raw materials price increases  Eibiswald: transfer of production lines to Villingen and Sibiu completed  Volat

  16. Slide 16: China

    CHINA  Loss of six production weeks in Shanghai due to the COVID-related shutdown  Total impact on Group revenue: 3% or EUR 3.5 million  Most of this revenue expected to be realized in H2 2022  Growth opportunities for all Business Groups  IAC in medical/automation markets  IB in robotics  Au

  17. Slide 17: New factory – Phase I

    Warehouse 5.500 m² Production 17.500 m² Office 4.300 m² New factory – Phase I 17

  18. Slide 18: Production Office Warehouse

    Office Production Warehouse 18

  19. Slide 19: Phase I: Latest progress

    Office Phase I: Latest progress Production Warehouse We have completed the construction of frame structures. The internal structures of the Production and Office buildings are in progress now. Warehouse includes 6,500+ pallet space. Almost 50% of the construction has been done. 19

  20. Slide 20: Plot of neighborhood, Zeiss

    Plot of neighborhood, Zeiss 20

  21. Slide 21: 3. Outlook

    KENDRION 3. Outlook

  22. Slide 22: Outlook

    OUTLOOK  Expect overall market situation to remain volatile in the foreseeable future  Expect continuation of constraints in the supply chain and upward pressure on raw material prices  Broad-based energy transition towards electrification is continuing  Positive longer-term business fundamental

  23. Slide 23: Long-term Targets

    LONG-TERM TARGETS Revenue EBITDA margin Average organic growth at least 5% At least15% in 2025 per year * ROIC Dividend At least 25% in 2025 Between 35% - 50% of normalized net profit * Invested capital excluding goodwill and intangibles arising from acquisitions 23

  24. Slide 24: Capital Markets Day

    CAPITAL MARKETS DAY  Thursday, 8 September 2022 at 2.00 p.m. CET  Hotel Novotel, Europa Boulevard 10, 1083 AD Amsterdam  Live webcast on www.kendrion.com with playback facilities 24

  25. Slide 25: 4. Questions & Answers

    KENDRION PRECISION. SAFETY. MOTION.

  26. Slide 26: Kendrion

    KENDRION

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