Kontron Ag · XETR:KTN
Kontron — Investor Presentation (November 2024)
21 slides from Kontron's investor presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation November 2024
Slide 2: Who we are
Who we are Leader of Smart Industrial IoT Solutions Focused on large and growing B2B-IoT market 7,200 1.8bn 190m Number of connected IoT devices grows globally by 30% Employees* Revenue (EUR)* R&D Spending (EUR)* Fully integrated technology platform Connecting grids of up to 1m edge devices and serv
Slide 3: Q3 Results & Company Highlights
Q3 Results & Company Highlights Results Highlights Company Highlights › Strong improvement in EBITDA › Strong improvement in GM to from EUR 34.9m to EUR 59.4m 44.7% / leap in technologies New products in 24 on market: › Solid revenue growth by 44.9% K-OS, K-Grid, NIS2 compatible and 6.2% organically
Slide 4: KPIs 9M 2024
KPIs 9M 2024 Revenues EBITDA Net Result after NCI (in EUR m) (in EUR m) (in EUR m) + 44.7% + 47.5% 86 Cent EPS + 17.4% 101 Cent 1,207.7 141.4 62.3 54.6 834.4 95.9 9M 2023 | 9M 2024 9M 2023 | 9M 2024 9M 2023 | 9M 2024 Adjustment of H1 23 revenues due to changed assessment of principal/agent status Or
Slide 5: Kontron Group Balance Sheet
Kontron Group Balance Sheet Equity and liquidity very strong in EUR m 30.09.2024 31.12.2023 in EUR m 30.09.2024 31.12.2023 NON-CURRENT ASSETS 708,3 492,5 EQUITY 616,2 604,0 Tangible assets 217,6 110,4 Accumulated results 494,3 462,8 Intangible assets 148,4 102,4 as of treasury shares -50,1 -43,0 Goo
Slide 6: Massive design win volume increases to EUR 6.22bn
Massive design win volume increases to EUR 6.22bn Backlog rose to EUR 2.06bn driven by great order intake Design Wins (in EUR bn) 6.22 4.10 3.41 2.97 2.35 2020 2021 2022 2023 Q3-24 Backlog (in EUR bn) 2.06 1.69 1.46 1.16 0.93 2020 2021 2022 2023 Q3-24 6
Slide 7: Europe: Strong growth in industrial IoT technology
Europe: Strong growth in industrial IoT technology Revenue & EBITDA* Backlog Segment trend Bu 2024: 1,018m Bu 2024: 92m › Common IoT products 851.5 › Represents 44% of group EBITDA (9M 2024) 68.4 › Growth driven by smart factories and reshoring to Europe 718.0 62.2 › Long term healthy customer relat
Slide 8: Global: Back to normal profitability
Global: Back to normal profitability Sales channel to sell European technology Revenue & Segment trend EBITDA* Backlog › Equal 14% of Kontron’s revenues (9% of EBITDA), incl. defense 20% › Expand to 25% (33%) in the next 4 years Bu 2024: 284m Bu 2024: 22m › Sales/Support channel for the complete Kon
Slide 9: Software + Solutions: Fast growing
Software + Solutions: Fast growing Biggest EBITDA contributor 2024, just started in 2020 Revenue & Segment trend EBITDA* Backlog › Offer unique IoT technology for special vertical markets (low competition) Bu 2024: 571m Bu 2024: 74m › 47% of group EBITDA and > 50% of recurring revenues and SLAs (up
Slide 10: Update on Katek integration
Update on Katek integration Business Integration Efficiency Improvements Achievements KPIs Achievements ✓ EUR 200m of low margin EMS biz terminated ✓ 446 FTEs reduced ytd 2024 ✓ Gross margin up to 40.1% in 2024 vs 32.5% in 2023 ✓ EUR 6.2m termination and M&A costs absorbed Q1-Q3 ✓ 11.8% of EBITDA in
Slide 11: Unique segment IoT solutions for special applications
Unique segment IoT solutions for special applications High-speed trains Defense & aerospace Charger for eCars Solar + energy mgmt Market EU: increase 11k -> 30k km of Global increase in defense EU permits only eCars 2035, After hype in 2023 market is in a high speed lines by 2030 budgets Recently le
Slide 12: Mega technology drivers
Mega technology drivers Kontron has >3,000 experienced engineers = #1 brainpower in IoT Mega technologies for IoT end devices Partnerships for IoT grids + end devices K-OS Software for IoT devices Qualcomm › Current IoT networks do not comply to NIS2 requirements › Joint development for 5G/6G/FRMCS
Slide 13: History and 2024 forecast
History and 2024 forecast Continuous strong growth – another leap in 2024 expected 2,000 200 1,500 150 Guidance Y-o-y divest IT (in EUR million) 2024 growth 1,000 100 Revenue 1,800 ~50% 500 50 EBITDA 190 50% 0 0 2017 2018 2019 2020 2021 2022 2023 2024E Net Income* 100 33% Revenue (left scale) Backlo
Slide 14: 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* 2023 2024E Revenues 503.7 882 990.9 1,122.9 1,254.8 1,002.9 1,096.1 1,200 ~ 1,800 Net Income after NCI 20.4 29.4 48.5 49.1 55.6 29.7 55.5 >72 100 adj. Share price (we
Slide 15: Why invest in Kontron?
Why invest in Kontron? Profitable long-term growth Engineering excellence › Unmatched R&D power of 3,000 engineers › Present in several high growth markets – disruptive and annual spending of EUR 190m technologies › Cost-efficient in-house engineering resources in CEE (average › Margin improvement o
Slide 16: Q&A
Q&A
Slide 17: The Kontron Share
The Kontron Share SDAX® & TecDAX® member Shareholder Structure Coverage** Erste Group Buy: EUR 26.50 Hauck & Aufhäuser Buy: EUR 36.50 Ennoconn - 27.5% Jefferies Buy: EUR 29.00 Naneva B.V (PPF Holdings B.V.) - 5.3% Kepler Cheuvreux Buy: EUR 25.00 Kontron Management - 4.9% mwb research (prev. Alster)
Slide 18: Update on ESG: Achievements
Update on ESG: Achievements Recognition of Kontron’s ESG efforts › MSCI: A (previously BBB) › EcoVadis: 50 - rated above industry average › Sustainalytics: 17.9 (low risk) › Moody’s: 38 – improvement by 4 points since 2022 › ISS ESG: C previously C- › Double Materiality Analysis (CSRD requirement) w
Slide 19: Update on ESG: Outlook & Targets
Update on ESG: Outlook & Targets › Corporate Carbon Footprint (Full disclosure on Scope I, II, III) › Climate Risk Analysis › EU Taxonomy alignment › CSRD compliance – Sustainability Statement 2024 (ESRS) based on Double Materiality Analysis › Kontron’s Green Products – communicating our products be
Slide 20: Competitive landscape
Competitive landscape FY 2023 results Leap forward in 2024 Our distinctive competitive advantages Selected competitors in Revenue Region Industrial IoT (in USD m) › Unmatched R&D scale: EUR 190m annual investments Curtiss Wright* 2,845 North America Kontron 2,100 Europe › Cost efficient solutions: E
Slide 21: 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