Kendrion N.v. · EURONEXT:KENDR
Kendrion — H1 2021 Earnings Presentation
27 slides from Kendrion's earnings presentation, Aug 25, 2021
Slide 1: Q2 and Half Year Results 2021
Q2 AND HALF YEAR RESULTS 2021 Amsterdam, 25 August 2021
Slide 2: Agenda
AGENDA 1. COVID-19 2. Business review 3. Strategic and operational update 4. Outlook 5. 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: COVID-19 Priorities
COVID-19 PRIORITIES Keep our employees and their families healthy and safe Safeguard the Group’s continuity so that when the situation stabilizes, our prospects are better than ever 4
Slide 5: 1. Business review
KENDRION PRECISION. SAFETY. MOTION. 1. Business review
Slide 6: Key Figures
KEY FIGURES Normalized (in EUR million) Q2 2021 Q2 2020 delta Organic revenue growth of 41% and Q2 revenue 4% above Q1 2021 Revenue 119,3 85,1 40% Increased activity level in all Business Groups, but high volatility and EBITDA 15,8 8,1 96% delays due to continuing supply chain constraints EBITA
Slide 7: Cash Flow and Financial Position
CASH FLOW AND FINANCIAL POSITION Free cash flow Financial position Free cash flow of EUR 1.2 million (Q2 2020: EUR Leverage ratio further reduced to 2.1 (Q1 2021: 2.3). 2.2 million) in Q2 despite EUR 5.5 million Covenant relief terminated as from Q3 2021 investments in inventory Net debt of EU
Slide 8: Automotive
AUTOMOTIVE 140.0 12.0% 123.0 Strong upturn in global production of passenger cars (+29%) 10.0% and trucks (+28%), ongoing weak long-haul coach market 120.0 10.4% 109.1 97.0 100.0 7.8% 8.0% Revenue growth of 29% in HY1 2021 at constant rates of 7.2% 80.0 exchange 6.0% 60.0 Demand recovery boosts
Slide 9: Industrial
INDUSTRIAL 70.0 17.5% Broad demand recovery with German manufacturing PMI 61.9 17.1% 60.0 17.0% rising to 65.1 end of June 54.1 16.1% 50.8 16.5% 49.7 50.0 43.6 41.8 16.0% 15% year-on-year growth at constant rates of exchange, 40.0 15.5% with Industrial Brakes + 15% and Industrial Actuators and 1
Slide 10: 2. Strategic and operational update
2. Strategic and operational update 10
Slide 11: Kendrion Strategic House
KENDRION STRATEGIC HOUSE STRATEGIC INTENT AUTO BRAKES IAC 'ACES' INTORQ ENERGY ROBOTS CONTROLS TRANSPORT CHINA CHINA CHINA KENDRION GLOBAL ORGANIZATION 11
Slide 12: Global Vehicle Production
GLOBAL VEHICLE PRODUCTION Millions of vehicles 93 95 94 94 91 93 89 89 81 75 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 12 Source: IHS Markit 08/2021
Slide 13: Global Electrified Car Sales
GLOBAL ELECTRIFIED CAR SALES Millions of vehicles 8 Estimated share of global production in 2023: 11% 7 6 5 4 3 2 1 0 2019 2020 2021 2022 2023 PHEV BEV Source: IHS Markit 01/2021 13
Slide 14: Accelerating 'ACES' Mobility
ACCELERATING ‘ACES’ MOBILITY Several significant government initiatives towards electrification Biden administration plan calls for USD 100 billion EV rebate program Germany targeting up to EUR 10 million EV’s on streets by 2030 All major OEMs and Tier 1 are heavily investing in the ACES Daiml
Slide 15: Commercial Traction Automotive
COMMERCIAL TRACTION Automotive AVAS Sound Phantone® product line: design wins continue Two global OEM’s selected latest platform release Production ramp planned for 2nd half of 2022 in China and Europe Sound experience and cybersecurity as key differentiators Signed partnership to develop turn
Slide 16: Global Manufacturing PMI
GLOBAL MANUFACTURING PMI Source: IHS Markit 08/2021 16
Slide 17: Achievements HY1 2021 IB
ACHIEVEMENTS HY1 2021 IB Key messages Our ambitious growth targets are reinforced with our newly aligned and unified global R&D organization Excellent customer satisfaction due to highly delivery performance Products Existing product portfolio extended to serve upcoming electrification market
Slide 18: Commercial Traction IB
COMMERCIAL TRACTION IB Overarching strategy Clear focus on global growth markets has been confirmed by successful project wins Regional growth strategy combined with global presence Global growth markets Robotics & automation Industrial trucks Wind power plants AGVs Medical
Slide 19: Commercial Traction IAC
COMMERCIAL TRACTION IAC Actuator products Control products Production started for industrial locks for devices Functional Safety Integrity Level 2 (SIL2) solutions like PCS testers, freezers, centrifuges, etc. available Competitiveness improved through insourcing of Launch of new drive contr
Slide 20: Commercial Traction China
COMMERCIAL TRACTION CHINA New business development IAC IAC Nominations continue to be higher than size of the business Significantly opportunity in industrial market driven by China government’s 14th 5-year plan: City subway: Electrical box Railway: AC main circuit breaker system o High speed ra
Slide 21: Planned New Factory in SIP, Suzhou China
PLANNED NEW FACTORY IN SIP, SUZHOU CHINA Phase I Phase I 30 years land-use-right acquired at Suzhou Automatic Production Warehouse Building Industrial Park (SIP) Phase I 4-floor Phase I Phase I: 27,248m2 Warehouse Office Building Phase II: 16,105m2 Automatic warehouse designed, enhancing overa
Slide 22: Progressing on Sustainability
PROGRESSING ON SUSTAINABILITY Responsible product portfolio Products that keep you safe Products that reduce climate impact Products that improve health Electrification Wind power Robotics Diversity matters! DRIVE FOR THE STRENGTH OF RIGHT MIX Strategic diversity framework PERFORMANCE DIVERS
Slide 23: 3. Outlook
KENDRION PRECISION. SAFETY. MOTION. -» = 3. Outlook
Slide 24: Outlook
OUTLOOK The global economy has improved, underlying demand is strong in both Automotive and Industrial markets Expect continuation of constraints in the supply chain and upward pressure on raw material prices Broad-based energy transition towards electrification is advancing Driving growth o
Slide 25: 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 25
Slide 26: 4. Questions & Answers
KENDRION PRECISION. SAFETY. MOTION.
Slide 27: Kendrion
KENDRION PRECISION. SAFETY. MOTION. at