Kontron Ag · XETR:KTN
Kontron — FY2022 Earnings Presentation
18 slides from Kontron's earnings presentation, Mar 29, 2023
Slide 1: Earnings Call FY 2022
Explore the Kontron Group We are a fast-moving multinational technology leader. Earnings Call FY 2022 March 29, 2023
Slide 2: High- and Lowlights FY 2022
High- and Lowlights FY 2022 Transformation update Highlights Lowlights › Divestment of IT Services › Chip shortage: EUR 96m › IoT focus + clean legal structure of delayed but not lost orders › EUR 232m net profit – reduced from Q3 at EUR 124m › EUR 438m of cash Dec 22 + › EUR 120m Cash drain until Q
Slide 3: KPI's FY2022: Continued Operating Result Adjusted
KPI‘s FY2022: Continued Operating Result Adjusted Healthy start into new area with positive momentum in CO Revenue EBITDA Operating Net Income after NCI (in EUR m) (in EUR m) (in EUR m) 120 46 Cent EPS 89% 87 Cent 60 1000 1.096,1 100 1.002,9 109,5 55,5 750 80 90,1 40 60 500 40 20 30,5 250 + 9.3% 20
Slide 4: KPI's FY2022: Reported
KPI‘s FY2022: Reported Includes extraordinary effects for “Focus” & “New Kontron” Revenue EBITDA Net Income after NCI (in EUR m) (in EUR m) (in EUR m) 350 75 Cent EPS Growth Focus 365 Cent 1500 300 339,0 240 220 1250 1.483,5 250 200 232,5 1.342,0 180 1000 200 160 140 750 150 120 100 500 100 126,3 80
Slide 5: Kontron Group Balance Sheet
Kontron Group Balance Sheet Equity and liquidity very strong Mio. EUR 31.12.2022 31.12.2021 31.12.2022 31.12.2021 NON-CURRENT ASSETS 415,1 519,0 CAPITAL AND RESERVES 635,7 423,3 Fixed Assets 379,0 478,8 Equity 442,8 423,3 as of Property, plant and equipment 95,6 132,5 as of Treasury shares 0,0 -46,8
Slide 6: Results FY 2022 Continued Operation
Results FY 2022 Continued Operation Details to adjustments New Kontron Reported Extraordinary Adj. Operative Comment Result Effects Result In EUR m 2021 2022 2021 2022 2021 2022 Extraordinary Effects Revenues 1,003 1,096 1,003 1,096 Obsolete inventory: in total EUR 20m dedicated to old business/Focu
Slide 7: Additional Disclosures
Additional Disclosures FY 2022 Delinquent Backlog and Inventory Development In TEUR OP. CASH FLOW ADJUSTMENTS (In EUR m) 44,443 STATED OP. CASH FLOW -4,903 Increase in A/R factored in 2022 300 39,540 ADJUSTED OP. CASH FLOW 246 242 250 219 201 ORGANIC GROWTH 200 187 193 In TEUR FY21 FY22 179 171 Stat
Slide 8: The New Kontron: Before and after IT divestment
The New Kontron Before and after IT divestment S&T AG 2021 New Kontron 2023 Comment Revenues (EUR m) 1,342 ~1,200 Reflects divestment of EUR 387m in IT service and EUR 40m in Russia Order backlog 1,334 (1160 CO) 1,460 (Dec-22) IT divestment already replaced by new IoT orders Design win pipeline 3,36
Slide 9: The New Kontron: divisions in segments
The New Kontron 7 divisions in 3 segments Europe Global Software + Solutions Industrial Telecom Services North America Asia Software Transport Revenue* FC 23 Revenue* FC 23 Revenue* FC 23 € 810m € 260m € 230m Targets Targets Targets EBITDA** 11% EBITDA** 8% EBITDA** 15% GM 40% GM 30% GM 60% Growth p
Slide 10: The New Kontron: Bigger acquisitions planned
The New Kontron Bigger acquisitions planned M&A is a core competence of Kontron M&A Volume (in EUR m) › Half of growth by M&A (10% /year), half organic › Target: Restructuring situations at no profit = low prices 350 Kontron M&A › High synergies with Kontron = achieve >10% EBITDA within 2 years 300
Slide 11: The New Kontron: Backlog and Design wins
The New Kontron Backlog and Design wins Continued Operations (in EUR bn) Backlog Design wins Top 10 Customers 2022 Country Volume EUR 4 Czech railway provider CZ 24.7 Mio. 3,5 3,41 Multinational telecom provider UK 16.5 Mio. 2,97 Medical respiratory machines GER 16.5 Mio. 3 UK railway provider UK 13
Slide 12: The New Kontron: Cash Usage
The New Kontron Cash Usage Status liquidity Dec. 2022 Cash usage for acquisitions and operations › EUR 437.8m cash on hand › Reduce factoring ST/debt by min. EUR 50m › EUR 138m ST receivables from Vinci (80m in Q1) › Saves EUR 2m interest p.a. › EUR 120m available lines › Spend min. EUR 300m in acqu
Slide 13: The New Kontron: Strategies
The New Kontron Strategies Short-term 2023 Mid-term „Agenda 2025“ › Rebrand & Reposition: “Kontron” as an IoT leader › Segment “Global” › 10-10-10 company: 10% growth, 10% EBIT, 10% op CF › Sales channel for Europe products with strong local › More efficiency engineering › Organization: low overhead
Slide 14: The New Kontron: Products and Technologies
The New Kontron Products and Technologies Basic technologies Vertical technologies › 5G › Smart factories › Connectivity is key for IoT › Smart trains and airplanes → 5G will be main media › Intelligent traffic control › TSN: real time for 5G › Smart energy → key know how of Kontron › Communication
Slide 15: Guidance 2023 increased by 10% to EUR 66m
The New Kontron Guidance 2023 increased by 10% to EUR 66m Divestment IT Services Guidance 2023 & Outlook 2025 150 1.500,00 2023E 2025E 1.200,00 100 900,00 Revenue EUR 1,200m EUR 2,000m 600,00 50 300,00 EBITDA 11% 13% 0,00 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023fc Net Profit 66m 140m Reve
Slide 16: Summary
Summary Achievements 2022 Targets › Divestment of IT Services = Focus on IIoT solutions › Guidance 2023: › Strong order intake EUR 1,396m (book-bill 1.28) › Revenue ~EUR 1,200m › EUR 109m of operat. CF in Q4 › Increased guidance net income EUR 66m › EUR 55m of net income vs. EUR 48m (2021- incl. sol
Slide 17: Q&A Session - FY 2022 Earnings Call
Explore the Kontron Group We are a fast-moving multinational technology leader. Q&A Session - FY 2022 Earnings Call March 29, 2023
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