Kendrion N.v. · EURONEXT:KENDR
Kendrion — Shareholder Meeting (April 2025)
59 slides from Kendrion's shareholder meeting presentation, Apr 14, 2025
Slide 1: General Meeting of Shareholders Kendrion N.V.
Q4 AND FULL-YEAR GENERAL RESULTS MEETING OF 2023 SHAREHOLDERS KENDRION N.V. Amsterdam, 28 February 2024 14 APRIL 2025
Slide 2: Agenda item 1: Opening and notifications
GENERAL MEETING OF SHAREHOLDERS Agenda item 1 Opening and notifications 2
Slide 3: Agenda item 2.a: Report by Executive Board and Supervisory Board
GENERAL MEETING OF SHAREHOLDERS Agenda item 2.a Report by the Executive Board and report of the Supervisory Board for the financial year 2024 (for discussion) 3
Slide 4: Joep van Beurden, CEO; Jeroen Hemmen, CFO
JOEP VAN BEURDEN, CEO JEROEN HEMMEN, CFO
Slide 5: 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 6: Agenda
AGENDA 1. Overview 2. Strategic repositioning 3. ESG 4. Financial review and dividend proposal 5. Outlook 6. Q&A 6
Slide 7: The New Kendrion – 2024
THE NEW KENDRION – 2024 2023 2024 Kendrion business location Employees Solero business location Employees over 2,600 1,609 Revenue Revenue € 518.5 million € 301.5 million Industrial Industrial Share of 49.5% Share of 79% revenue 2023 16% 70% 14% revenue Automotive 2024 7% 69% 24% Automotive 50.5% Re
Slide 8: 2. Strategic repositioning
2. Strategic repositioning 8
Slide 9: Divesting Automotive: strategic rationale
DIVESTING AUTOMOTIVE: STRATEGIC RATIONALE The automotive industry requires substantial investments in R&D and capex, while offering lower margins compared to industrial markets There are limited growth opportunities in the US and Europe for an automotive Tier 1- 2 supplier of Kendrion’s scale
Slide 10: The New Kendrion: pro forma revenue mix
THE NEW KENDRION: PRO FORMA REVENUE MIX The New Kendrion External reporting: Mobility* Revenue: 21% IB IAC IB Mobility 39% Profitability Pro forma Industrial revenue mix Mobility FY 2024 IAC 40% * Managed as part of IAC 10
Slide 11: Strategic intent
STRATEGIC INTENT To become a global niche leader in selected industrial market segments, with a focus on sustainably growing revenues and achieving a profitability target of at least 15% EBITDA from 2025. Characteristics of market segments identified: A product opportunity with a clear USP, based
Slide 12: Kendrion organization
KENDRION ORGANIZATION Executive Board Joep van Beurden Jeroen Hemmen General Counsel Group IT Niek de Kort Robin Vleij President Kendrion BG Manager Industrial BG Manager Industrial Asia Brakes Actuators and Controls Telly Kuo Olaf Detlef Robert Lewin 12
Slide 13: 3. ESG
KENDRION PRECISION. SAFETY. MOTION. 3. ESG 4 13
Slide 14: 2024-2028 ESG plan
2024-2028 ESG PLAN • Achieve a further 70% reduction in CO2 emissions • Establish reporting frameworks for Scope 1, 2 & 3 reporting Natural Capital • Implement a gender diversity ambition at Business Group level for indirect staff, aiming for a 25% improvement over time with a minimum threshold of 3
Slide 15: 4. Financial review and dividend proposal
4. Financial review and dividend proposal 15
Slide 16: Business review
BUSINESS REVIEW full year results Normalized (in EUR million) FY 2024 FY 2023 delta Revenue 301,5 309,0 -2% Full year revenue decrease of 2% at constant rates of exchange EBITDA 37,0 41,4 -11% EBITA 21,1 27,3 -23% Net profit before amortization from continuing operations 11,5 15,3 -25% Weak glob
Slide 17: Business groups
BUSINESS GROUPS Full year 2024 IAC IB Industrial Mobility FY 24 FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 FY 23 Organic revenue decrease in IAC and IB driven by continued Revenue 121,7 127,5 116,5 129,0 238,2 256,5 63,3 52,5 weakness in global industrial production Normalized EBITDA 30,7 36,1 6,3 5,3 No
Slide 18: Cash flow and net debt
CASH FLOW AND NET DEBT Good cash conversion of continued operations Free cash flow discontinued operations affected by termination receivables factoring and timing of divestment Leverage ratio of 2.7 at the end of Q4 and 2.4 when pro forma including final outstanding payment Automotive divestm
Slide 19: Dividend proposal
DIVIDEND PROPOSAL 2018 2019 2020 2021 2022 2023 2024 Policy and financial target is a pay out of at least 50% of normalized net Actual Actual actual actual actual actual proposal profit before amortization Dividend per 0,87 - 0,40 0,69 0,72 0,45 0,45 share Pay-out 52% 50% 50% 50% 50% 59% Histori
Slide 20: 5. Outlook
KENDRION PRECISION. SAFETY. MOTION.
Slide 21: 2027 target framework
2027 TARGET FRAMEWORK The new Kendrion financial targets Existing 2020−2025 New 2025−2027 Target: 5% annual organic Expectation: 5-8% annual Revenue growth (2019-2025) growth (2024-2027) EBITDA margin At least 15% from 2025 15%-18% from 2025 ROI* At least 25% from 2025 23%-27% from 2027 30%-50% of A
Slide 22: Outlook 2025
OUTLOOK 2025 Trade Tensions: The US has imposed new tariffs, which could lead to a global trade war, potentially slowing down economic growth worldwide. Mitigation: Kendrion has a 'local for local' supply chain which limits the direct impact of tariffs, although indirect effects, will still be f
Slide 23: Thank you
KENDRION PRECISION. SAFETY. MOTION. }
Slide 24: Questions & answers
Questions & answers
Slide 25: Agenda item 2.b: Corporate governance
GENERAL MEETING OF SHAREHOLDERS Agenda item 2.b Main items corporate governance structure and compliance with the corporate governance code in 2024 (for discussion) Corporate governance report on pages 38 – 42 of the 2024 annual report 25
Slide 26: Questions & answers
Questions & answers
Slide 27: Agenda item 3.a: Adoption of 2024 financial statements
GENERAL MEETING OF SHAREHOLDERS Agenda item 3.a Adoption of the 2024 financial statements (for resolution) 27
Slide 28: Annual general meeting of Kendrion N.V. April 2025
Annual general meeting of Kendrion N.V. 14 April 2025
Slide 29: Contents
Contents 1. Engagement Forvis Mazars 2. Audit approach 3. Auditor’s report financial statements 4. Assurance report sustainability report 29
Slide 30: 1. Engagement Forvis Mazars
1. Engagement Forvis Mazars Audit • Audit of the financial statements for the year ended 31 December 2024 of Kendrion N.V. • We have conducted our audit in accordance with Dutch Standards on Auditing (NV COS), the relevant ethical and professional standards and the terms of our engagement which have
Slide 31: 2. Audit approach
2. Audit approach • Design and implementation of the relevant business processes related to financial reporting for Significant • Management override of controls (presumed Class Of Transactions fraud risk) 1. Audit • General understanding of IT General Controls procedures • Revenue recognition (pres
Slide 32: 3. Auditor's report financial statements
3. Auditor’s report financial statements Our opinion Audit response related to fraud risks • For 2024, we have expressed an unqualified opinion on the financial statements of We included a description of the following identified fraud risks and Kendrion N.V. our specific audit response in the audit
Slide 33: 4. Assurance report sustainability report
4. Assurance report sustainability report Our conclusion • Based on our procedures performed and the assurance evidence obtained, nothing has come to our attention that causes us to believe that the sustainability statement is not, in all material respects: • prepared in accordance with the European
Slide 34: Contact
Contact Forvis Mazars Attn. Marc Vazel RA Watermanweg 80 3067 CG Rotterdam T: +31 (0)88 277 13 92 / M: +31 (0)6 53 33 28 17 Forvis Mazars is a leading global professional services network. The network operates under a single brand with just two members: Forvis Mazars, LLP in the United States and Fo
Slide 35: Questions & answers
Questions & answers
Slide 36: Agenda item 3.b: Dividend over financial year 2024
GENERAL MEETING OF SHAREHOLDERS Agenda item 3.b Dividend over financial year 2024 (for resolution) Proposal: EUR 0.45 per share (59% of normalized net profit before amortization) Optional dividend: cash or shares Ex-dividend date: 16 April 2025 Record date: 17 April 2025 Determination co
Slide 37: Questions & answers
Questions & answers
Slide 38: Agenda item 4.a: Discharge of Executive Board
GENERAL MEETING OF SHAREHOLDERS Agenda item 4.a Discharge of the members of the Executive Board (for resolution) 38
Slide 39: Questions & answers
Questions & answers
Slide 40: Agenda item 4.b: Discharge of Supervisory Board
GENERAL MEETING OF SHAREHOLDERS Agenda item 4.b Discharge of the members of the Supervisory Board (for resolution) 40
Slide 41: Questions & answers
Questions & answers
Slide 42: Agenda item 5: Remuneration report 2024
GENERAL MEETING OF SHAREHOLDERS Agenda item 5 Remuneration report 2024 (for advice) Advisory vote by shareholders Remuneration report on pages 115 – 130 of the 2024 annual report 42
Slide 43: Executive Board: 2024 annual base salary
EXECUTIVE BOARD 2024 ANNUAL BASE SALARY CEO EUR 590,000 (gross) CFO EUR 350,000 (gross) 43
Slide 44: Executive Board: pay-out 2024 short-term incentive (financial)
EXECUTIVE BOARD PAY-OUT 2024 SHORT-TERM INCENTIVE (financial performance criteria) Target amount % of target Pay-out as % of Pay-out Pay-out as % of amount for target amount 2024 base salary financial CEO EUR 354,000 (60% of 60% 37.3% EUR 79,296 (gross) 13.44% 2024 base salary) CFO EUR 157,500 (45%
Slide 45: Executive Board: pay-out 2024 short-term incentive (non-financial)
EXECUTIVE BOARD PAY-OUT 2024 SHORT-TERM INCENTIVE (non-financial performance criteria) Target amount % of target amount Pay-out as % of Pay-out Pay-out as % of for non-financial target amount 2024 base salary CEO EUR 354,000 (60% 40% 150.0% EUR 212,400 36.0% of 2024 base salary) (gross) CFO EUR 157,
Slide 46: Executive Board: total pay-out 2024 short-term incentive
EXECUTIVE BOARD TOTAL PAY-OUT 2024 SHORT-TERM INCENTIVE Target amount Pay-out as % of Pay-out Pay-out as % of target amount 2024 base salary CEO EUR 354,000 (60% 82.4% EUR 291,696 49.4% of 2024 base salary) (gross) CFO EUR 157,500 (45% 82.4% EUR 129,815 37.1% of 2024 base salary) (gross) 46
Slide 47: Executive Board: performance 2022 long-term incentive
EXECUTIVE BOARD PERFORMANCE 2022 LONG-TERM INCENTIVE (performance period 2022-2024) 2022 target amount Average share # Conditional # Vested price Q4 2021 performance shares shares CEO EUR 330,000 EUR 20.44 16,144 3,229 CFO EUR 167,500 8,194 1,639 47
Slide 48: Executive Board: 2024 long-term incentive
EXECUTIVE BOARD 2024 LONG-TERM INCENTIVE Target amount Average share price # Conditional Q4 2023 performance shares CEO EUR 354,000 EUR 11.57 30,596 CFO EUR 175,000 15,126 48
Slide 49: Supervisory Board: fees and 2024 remuneration
SUPERVISORY BOARD ANNUAL BASE FEE AND COMMITTEE FEE 2024 REMUNERATION Annual base fee Van Hout EUR 65,000 (Chairman) Chairman EUR 59,000 Slijkhuis EUR 49,000 Member EUR 41,800 (Chair Audit Committee) Committee fee Baijens EUR 36,750 (current Chair HR Committee – Chair Audit Committee / EUR 7,200 as
Slide 50: Questions & answers
Questions & answers
Slide 51: Agenda item 6.a: Reappointment of Mr. F. van Hout
GENERAL MEETING OF SHAREHOLDERS Agenda item 6.a Reappointment of Mr. F. van Hout as member of the Supervisory Board (for resolution) 1st appointment 12 April 2021 Appointment for a 2nd 4-year term Professional and international background and extensive technical expertise 51
Slide 52: Questions & answers
Questions & answers
Slide 53: Agenda item 7.a: Authorization to issue shares
GENERAL MEETING OF SHAREHOLDERS Agenda item 7.a Authorization to issue shares (for resolution) Valid for a period of 18 months Approval by the Supervisory Board Maximum authorization of 10% of the issued capital 53
Slide 54: Agenda item 7.b: Restrict or exclude pre-emptive rights
GENERAL MEETING OF SHAREHOLDERS Agenda item 7.b Authorization to restrict or exclude pre-emptive rights (for resolution) Valid for a period of 18 months Approval by the Supervisory Board Maximum authorization of 10% of the issued capital 54
Slide 55: Agenda item 8: Authorization to repurchase shares
GENERAL MEETING OF SHAREHOLDERS Agenda item 8 Authorization to repurchase Kendrion N.V. shares (for resolution) Valid for a period of 18 months Maximum of 10% of the issued capital 55
Slide 56: Agenda item 9: Any other business
GENERAL MEETING OF SHAREHOLDERS Agenda item 9 Any other business 56
Slide 57: Questions & answers
Questions & answers
Slide 58: Agenda item 10: Closing
GENERAL MEETING OF SHAREHOLDERS Agenda item 10 Closing 58
Slide 59: Thank you
KENDRION PRECISION. SAFETY. MOTION. }