TKH Group N.V. Cert · EURONEXT:TWEKA
TKH Group N.V. Cert — TKH Group — Investor Presentation (March 2024)
44 slides from TKH Group N.V. Cert's investor presentation, March 2024
Slide 1: TKH Group NV General Investor Presentation March 2024
TKH GROUP NV GENERAL INVESTOR PRESENTATION MARCH 2024
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: Key Messages
Key Messages DELIVERING ON OUTLOOK € 200M STRATEGIC INVESTMENT PROGRESSING ON OUR STRATEGIC PROGRAM NEARING COMPLETION POSITIONING ▪ EBITA of € 237.0 million ▪ Production of type-test inter-array cables started ▪ Investments into AI, with set-up of hub in in new plant in Eemshaven, to be operational
Slide 4: Q4 2023: Strong Performance Smart Manufacturing
Q4 2023: Strong Performance Smart Manufacturing Highlights Q4 2023 Turnover € 441.4m EBITA* € 62.9m ROS* 14.3% Q4 2022: € 465.7m Q4 2022*: € 64.0m Q4 2022: 13.7% + 1.2% organically ** + 6.7% organically** * EBITA & ROS excluding one-off income and expenses (one-off expenses in Q4 2023 amounted to €
Slide 5: TKH delivers well on Outlook
TKH delivers well on Outlook Highlights FY 2023 Turnover € 1,847.5m EBITA* € 237.0m ROS* 12.8% Adjusted net profit** 2022: € 1,816.6m 2022: € 234.8m 2022: 12.9% € 130.5m + 3.2% organically*** + 3.0% organically*** 2022: € 143.6m - 9.1% ROCE 19.8% Order book € 970.1m Innovations 16.1% Net debt € 469.
Slide 6: Added Value increased across all segments
Added Value increased across all segments SMART VISION SMART MANUFACTURING SMART CONNECTIVITY TOTAL - 1.8%* + 17.1%* - 1.5%* + 3.2%* TURNOVER & AV 37.8% TURNOVER & AV 50.5% 41.8% 47.2% 49.8% 58.5% 58.9% 49.9% 573.6 848.6 800.5 1.816,6 1.847,5 499.7 500.5 491.2 2022 2023 2022 2023 2022 2023 2022 2023
Slide 7: Content
Content 1 Profile 2 Accelerate 2025 Strategy 3 Capital Allocation & Strategic Priorities 4 Track Record 5 Reporting Segments 6 Highlights and Financial Performance FY 2023 7 Outlook 7 TKH GENERAL INVESTOR PRESENTATION – MARCH 2024
Slide 8: Profile
PROFILE
Slide 9: TKH – Technology leader in high growth markets
Checl numbers 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
Slide 10: 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 11: 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 12: Built on innovation
Built on innovation Innovations as % of turnover OFFSHORE CABLE TECHNOLOGY ALVIUM 2D VISION PROCESSOR SUSTAINABLE SUBSEA CABLE SYSTEMS “SYSTEM ON CHIP APPLICATION” 25% 20.6% ▪ Modern cable design & HUNDREDS 16.1% 20% ▪ SoC designed embedded and pc- environmentally friendly based computer vision mate
Slide 13: 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 14: Accelerate 2025 Strategy
ACCELERATE 2025 STRATEGY
Slide 15: 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) Strategic investment program to expand capacity ORGANIC GROWTH /
Slide 16: Accelerate 2025: Assumptions for ROS Targets
Accelerate 2025: Assumptions for ROS Targets SMART VISION SMART MANUFACTURING SMART CONNECTIVITY = ROS ROS ROS ROS ROS ROS Acquisitions Divestments Strategic Organic Growth Organic Growth 2021 Assumptions Investment Plan Organic Growth ROS ROS ROS 2025 Targets: target 22% target 18% target 15% ▪ Meg
Slide 17: Our sustainable value chain
18 Our sustainable value chain Our Focus on SDGs How we do it How we are rated 70% of turnover linked to SDGs non-financial KPIs rating agencies CO2e FOOTPRINT % WASTE SATISFACTION SCORE Electrification REDUCTION (scope 1 & 2) Energy cables Target < 5% waste Customers Subsea cables Compared to 2019
Slide 18: Capital Allocation & Strategic Priorities
CAPITAL ALLOCATION & STRATEGIC PRIORITIES
Slide 19: Capital allocation
Capital allocation Strategic Investments CAPITAL EXPENDITURE ACQUISITIONS & DIVESTMENTS In million € In million € 200 2023: PP&E capex 150 Acquisitions that of € 177 million of 100 strengthen our 150 which € 134 million portfolio 50 from Strategic 0 100 Investment Program Divestments that do -50 not
Slide 20: € 200m Strategic Investments nearing completion
€ 200m Strategic Investments nearing completion Production capacity expansions on schedule to meet increased demand in automation, digitalization, and electrification Single source framework contract for 3y+5y Offshore: Start serial established with Vattenfall for Europe and € 150m investment ELECTR
Slide 21: Strong progress in our strategic positioning
Strong progress in our strategic positioning TKH VISION DIGITAL TRANSFORMATION Acquisition Euresys Innovative software for 2D and 3D image analysis EPS accretive Acquisition JCAII (Jan 2024) Guidance software and equipment for airports Further positioned the TKH Vision • Upscaling and upskilling of
Slide 22: Track Record
TRACK RECORD
Slide 23: 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% 70 5% 4% 1.500 60 4% 50 3% 1.000 40 3% 30 2% 500 2% 20 1% 10 1% 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 0% 2012 2013 2014 2015
Slide 24: Our track record
Our track record TURNOVER ROS ROCE DIVIDEND PER EARNINGS PER SHARE* SHARE* In million € 2000 14% 25% € 2,00 € 3,50 1750 12% 20% € 3,00 1500 10% € 1,50 € 2,50 1250 15% 8% € 2,00 1000 € 1,00 6% 10% 750 € 1,50 4% 500 € 0,50 € 1,00 5% 2% 250 € 0,50 0 0% 0% € 0,00 2003 2013 2023 € 0,00 2003 2013 2023 200
Slide 25: Reporting Segments
REPORTING SEGMENTS
Slide 26: Smart Vision Systems – FY23 Results
Smart Vision Systems – FY23 Results Organic HIGHLIGHTS 2023 In million € unless stated otherwise 2023 2022 Δ in % Δ in % Turnover 500.5 499.7 + 0.2% - 1.8% • Cost levels and capacity at Machine Vision kept at higher turnover levels in anticipation of return of growth Added value 58.9% 58.5% • EBITA
Slide 27: Smart Vision systems
Smart Vision systems 2D & 3D MACHINE VISION Area scan, MARKET MARKETPOSITIONS POSITIONS MARKET DRIVERS (in € bn) Line scan, 3D, Embedded, High-speed, PROPOSITION SWIR, UV, Polarized SECURITY VISION 2D & 3D MACHINE VISION 3D MACHINE VISION SECURITY VISION Video surveillance, Video hardware, Mission c
Slide 28: Smart Manufacturing Systems – FY23 Results
Smart Manufacturing Systems – FY23 Results Organic HIGHLIGHTS 2023 In million € unless stated otherwise 2023 2022 Δ in % Δ in % Turnover 573.6 491.2 + 16.8% + 17.1% Tire Building systems • Easing of supply-chain constraints in H2 Added value 50.5% 49.9% • Excellent performance in Q4 2023 EBITA * 90.
Slide 29: Smart Manufacturing systems
Smart Manufacturing systems MARKET DRIVERS MARKET POSITIONS TIRE BUILDING SYSTEMS PROPOSITION Passenger & Truck tire building machines, Bead assembly TIRE BUILDING TIRE BUILDING Increasing number of units in stock with 7% Increased complexity: continuous increase OTHER Care systems, Industrial 1 ann
Slide 30: Smart Connectivity Systems – FY23 Results
Smart Connectivity Systems – FY23 Results Organic HIGHLIGHTS 2023 In million € unless stated otherwise 2023 2022 Δ in % Δ in % Electrification Onshore Turnover 800.5 848.6 - 5.7% - 1.5% • Onshore energy cables impacted by destocking Dutch utility companies Added value 41.8% 37.8% • Delays encountere
Slide 31: Smart Connectivity systems – Digitalization
Smart Connectivity systems – Digitalization TURNOVER SPLIT SMART MARKET DRIVERS DIGITALIZATION MARKET POSITION DIGITALIZATION CONNECTIVITY SYSTEMS % of homes passed Belgium 12% 28% Other Germany 22% 39% UK 27% GRWOING MARKET GROWING MARKET MARKET LEADER Network companies Finland POSITIONS Energy 41%
Slide 32: Smart Connectivity systems – Electrification
Smart Connectivity systems – Electrification PROPOSITION MARKET DRIVERS ONSHORE MARKET POSITION ONSHORE Threat of transport limitation ELECTRIFICATION Offshore turnkey Onshore inter-array cabling and accessories, Pre-announcement of structural congestion MARKET LEADER GRWOING MARKET MARKET LEADER Ut
Slide 33: Highlights & Financial Performance FY 2023
HIGHLIGHTS & FINANCIAL PERFORMANCE FY 2023
Slide 34: TKH delivers well on Outlook
TKH delivers well on Outlook Highlights FY 2023 Turnover € 1,847.5m EBITA* € 237.0m ROS* 12.8% Adjusted net profit** 2022: € 1,816.6m 2022: € 234.8m 2022: 12.9% € 130.5m + 3.2% organically*** + 3.0% organically*** 2022: € 143.6m - 9.1% ROCE 19.8% Order book € 970.1m Innovations 16.1% Net debt € 469.
Slide 35: Added Value increased across all segments
Added Value increased across all segments SMART VISION SMART MANUFACTURING SMART CONNECTIVITY TOTAL - 1.8%* + 17.1%* - 1.5%* + 3.2%* TURNOVER & AV 37.8% TURNOVER & AV 50.5% 41.8% 47.2% 49.8% 58.5% 58.9% 49.9% 573.6 848.6 800.5 1.816,6 1.847,5 499.7 500.5 491.2 2022 2023 2022 2023 2022 2023 2022 2023
Slide 36: Geographical distribution of turnover
Geographical distribution of turnover NETHER- LANDS EUROPE 2023 2022 (OTHER) Netherlands 24.6% 24.7% NORTH AMERICA Europe (other) 38.8% 44.1% Asia 19.1% 14.8% ASIA North America 13.0% 12.7% Other 4.5% 3.7% Smart Vision systems OTHER Smart Manufacturing systems Smart Connectivity systems 37 TKH GENER
Slide 37: Profit and Loss Account
Profit and Loss Account € million 2023 2022 Δ in % € million Turnover Turnover 1,847.5 1,816.6 + 1.7% 2022 1,816.6 Acquisitions + 16.9 + 0.9% Raw materials and Divestments - 32.4 - 1.8% 927.9 958.7 subcontracted work Currency translation - 11.3 - 0.6% Added value 919.7 49.8% 857.9 47.2% + 7.2% Organ
Slide 38: Profit and Loss Account
Profit and Loss Account € million 2023 2022 Δ in % Reorganization costs in Smart Vision Turnover 1,847.5 1,816.6 + 1.7% Closure of fibre optic cable production in China Acquisition and divestment costs Raw materials and 927.9 958.7 subcontracted work Mostly related to discontinued R&D Added value 91
Slide 39: Balance sheet
Balance sheet Dec 31, Dec. 31, (in € million) Changes in working capital (in € million) 2023 2022 Intangible assets and goodwill 565.7 533.8 Property, plant and equipment 436.0 295.0 Right-of-use assets 84.0 75.3 Other non-current assets 52.6 26.1 Total non-current assets 1,138.3 930.2 Current asset
Slide 40: Balance sheet
Balance sheet Dec 31, Dec. 31, (in € million) Change in net debt (in € million) 2023 2022 Intangible assets and goodwill 565.7 533.8 Property, plant and equipment 436.0 295.0 Right-of-use assets 84.0 75.3 Other non-current assets 52.6 26.1 Total non-current assets 1,138.3 930.2 Current assets 874.6
Slide 41: Free Cash Flow
Free Cash Flow H1 H2 FCF conversion can be affected by developments in (in million € unless stated otherwise) 2023 2023 2023 2022 2021 2020 working capital. Working capital ratio for the period- Operating result 93.3 81.2 174.5 190.2 70.9 end included in the overview are: 136.9 2019: 13.0% Depreciat
Slide 42: Outlook
OUTLOOK
Slide 43: Outlook
Outlook TKH has made strong progress in its strategic positioning in 2023. With over 15% of turnover from innovations and the completion of the € 200 million strategic investment program, TKH is well positioned for further growth. For Q1 2024, we anticipate Smart Manufacturing systems to grow compar
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