Kontron Ag · XETR:KTN
Kontron — Investor Presentation (January 2024)
21 slides from Kontron's investor presentation, January 2024
Slide 1: Explore the Kontron Group – Investor Presentation
Explore the Kontron Group We are a fast-moving multinational technology leader. Investor Presentation January 2024
Slide 2: Who we are
Who we are Leader of Smart Industrial IoT Solutions › Focused on the large, diverse and growing 4,740 1.2bn Industrial IoT market (IIoT) Employees Revenue (EUR)* › Fully integrated technology platform Integrated (SW+HW) solutions for smart factories, >72m >10% transportation, data connectivity, medi
Slide 3: The IoT Market
The IoT Market Key Metrics Focus Industries 64 billion $ 148.6 billion connected IoT devices by Industrial IoT revenue with 2025 worldwide (from 29 a 11.4% CAGR from 2022 billion in 2022) Smart Factories Traffic 31% growth 21% adoption machines connected of 5G across mobile internet to the Internet
Slide 4: Kontron Key Figures
Kontron Key Figures Strong growth in profitability , while P/E ratio historically down in EUR mn 2016 2017 2018 2019 2020 2021* 2022* 2023E 2024E Revenues 503.7 882 990.9 1,122.9 1,254.8 1,002.9 1,096.1 1,200 1,400 Net Income after NCI 20.4 29.4 48.5 49.1 55.6 29.7 55.5 >72 >87 Share price (weighted
Slide 5: Kontron 2024 segments
Kontron 2024 3 segments - new division added in “Software + Solutions” Europe Global Software & Solutions North Industrial Telecom OT Services America Asia Software Transport Aerospace Adding 5G IT converted to Sales channel Sales channel susietec® & Data for high- Industrial and Aerospace & connect
Slide 6: KPIs 1-9M 2023
KPIs 1-9M 2023 Revenue EBITDA Operating Net Income after NCI* (in EUR m) (in EUR m) (in EUR m) + 14.0% + 39.9% 38 Cent EPS + 118% 83 Cent 860.9 95.9 53.0 755.0 68.5 23.9 9M 2022 | 9M 2023 9M 2022 | 9M 2023 9M 2022 | 9M 2023 * 2022 adj for DCO/sold IT Gross Margin Order Entry vs. Revenues Operating C
Slide 7: Europe: Biggest segment
Europe: Biggest segment Revenue & Industrial EBITDA* EBITDA Margin** Order Entry › Shows strong growth driven by smart factories Communications Book-to-bill: 1.07 › Growth potential for 5G and MPN, driver in 2025 IoT services 595.9 10.3% › EBITDA margin burdened by transformation into IoT 57.7 558.6
Slide 8: Global: Back to normal profitability
Global: Back to normal profitability Revenue & North America EBITDA* EBITDA Margin** Order Entry › Solid growth, avionics recovery, strong defense › Successful price increases base for improved numbers Book-to-bill: 0.94 › Weaker USD burdens numbers slightly 149.5 Asia 139.2 141.1 8.9% 13.3 › Busine
Slide 9: Software & Solutions: Fast growing
Software & Solutions: Fast growing Revenue & Transportation (high-speed trains) EBITDA* EBITDA Margin** Order Entry › High-speed trains are driven by political support, high resilience against macroeconomic influences Book-to-bill: 2.09 › Market leader in Europe for GSM-R Software (susietec®) 319.4
Slide 10: Macro trends driving IoT business in the mid-term
Macro trends driving IoT business in the mid-term • Lower investment & lifecycle costs Smart • Nearshoring/factories coming back • Intelligent modules offer security 5G • Robots increase automation budget • Shift from GSM-R/4G/Wi-Fi to 5G Factories • Connected IoT production machines • 5G private ne
Slide 11: Strongest brainpower in the industry
Strongest brainpower in the industry susietec® IoT software framework Excellent pool of engineers › Extending susietec® portfolio by Bsquare SquareOne supported by lean organization › Release of KontronOS (highest security standard) › EUR 100m pure software revenues Mission-critical control systems
Slide 12: M&A strategy
M&A strategy Replace sold IT segment by strategic IoT acquisitions M&A is a core competence of Kontron M&A activities (in EUR m) › Replace EUR 387m of sold IT business with IoT acquisitions signed negotiations › Target: High synergies with Kontron → 12% EBITDA within 2 years › Complementary IoT tech
Slide 13: Backlog and Design Wins
Backlog and Design Wins Development since 2020 (in EUR bn) Backlog Design wins Top Design Wins in 9M 2023 Country Volume EUR 3.61 Railway FR 150m 3.41 Avionics US 90m 2.97 Medical DE 60m 2.35 Railway/Security FR 60m Telecommunication AT 50m 1.66 Medical DE 50m 1.46 1.16 Defense US 42m 0.80 Railway S
Slide 14: Our competition
Our competition Our distinctive competitive advantages Selected competitors in Revenue Region Industrial IoT (in USD m) › Unmatched R&D scale Curtiss Wright* 2,600 North America › 2,800 FTEs, annual budget of EUR 170m Advantech 2,200 Asia Beckhoff 1,600 Europe › Cost efficient solutions › (EUR 45k p
Slide 15: Kontron Guidance for 2024
Kontron Guidance for 2024 Net profit of EUR >87m and revenues of EUR 1,400m expected for 2024 2,000 150 Guidance 2024 & Outlook 2025 1,500 100 2025E (in EUR million) 2023E 2024E (target incl. 1,000 M&A) 50 500 Revenue 1,200m 1,400m 2,000m 0 0 2021 2022 2023E 2024E 2025E Net Profit >72m >87m 140m Rev
Slide 16: Why invest in Kontron?
Why invest in Kontron? Profitable long-term growth Engineering excellence › Excellent position to profit from the megatrends › Unmatched R&D power of 2,800 engineers and digitalization, AI and sustainability via IoT products annual investment of approx. 14% of revenues › Expand high-margin high-grow
Slide 17: The Kontron Share
The Kontron Share SDAX® & TecDAX® member Shareholder Structure Coverage*** Alster Research Buy: EUR 32.00 Erste Group Buy: EUR 26.50 Ennoconn - 27.5% Hauck & Aufhäuser Buy: EUR 30.00 Naneva B.V (PPF Holdings B.V.) - 5.3% Jefferies Buy: EUR 29.00 Kontron Management* - 4.88% Kepler Cheuvreux Buy: EUR
Slide 18: Disclaimer
Disclaimer This document includes 'forward-looking statements'. Forward-looking statements are all statements, which do not describe facts of the past, but containing the words "believe", "estimate", "expect", "anticipate", "assume", "plan", "intend", "could", and words of similar meaning. These for
Slide 19: Appendix
Explore the Kontron Group We are a fast-moving multinational technology leader. APPENDIX
Slide 20: Kontron Group Balance Sheet Q3 2023
Kontron Group Balance Sheet Q3 2023 Equity and liquidity very strong in m EUR 9/30/2023 12/31/2022 in m EUR 9/30/2023 12/31/2022 NON-CURRENT ASSETS 447.5 412.1 EQUITY 617.6 635.7 Fixed Assets 415.9 379.0 accumulated results 439.7 449.6 as of Property, plant and equipment 104.0 95.5 as of Treasury sh
Slide 21: Update on ESG
Update on ESG Achievements Outlook & Targets › MSCI: BBB (stable since 2021) › Increasing interest of sustainable investors to be met › EcoVadis: rated above industry average › Customers and Investors – CO2 disclosure requests more often › Sustainalytics: 20.2 (medium* risk) Making our data easily a