Kontron Ag · XETR:KTN
Kontron — Investor Presentation (April 2024)
26 slides from Kontron's investor presentation, April 2024
Slide 1: Investor Presentation
Investor Presentation April 2024
Slide 2: Who we are
Who we are Leader of Smart Industrial IoT Solutions Focused on large and growing B2B-IoT market 8,000 1.9bn Number of connected IoT devices grows globally by 30% Employees* Revenue (EUR)* Fully integrated technology platform Integrated (SW+HW) solutions 100m >10% Net Result (EUR)* Organic growth p.a
Slide 3: Kontron's IoT: In the heart of many industries
Kontron‘s IoT: In the heart of many industries End-to-end communication for mission-critical networks Autonomous Driving In-flight entertainment & communication systems Industrial IoT – Smart Factory GreenTec
Slide 4: The IoT Market
The IoT Market Key Metrics Focus Industries 64 billion $ 254 billion connected IoT devices by Industrial IoT revenues in FY23; 2025 worldwide (from 29 expected 13% CAGR (2024-2028) billion in 2022) Smart Factories Transportation 31% growth 21% adoption machines connected of 5G across mobile internet
Slide 5: FY2023 at a glance
FY2023 at a glance Revenues EBITDA OpCF Net Income EPS Backlog EUR 1,226m EUR 126m EUR 117m EUR 75.3m EUR 1.23 EUR 1,686m +15% +15% +163% +36% +16% Regional distribution: DE 17%, AT 11%, Europe Rest 53%, NA 11%, Asia 9% FY22 comparable figures had been impacted by extraordinary effects in connection
Slide 6: Successful Year 2023 – Above expectations
Alternativ: Eine Seite Successful Year 2023 – Above expectations Strong Results, FY23 guidance beat › Net income higher than guidance (EUR >72m) and consensus (EUR 72.3m) › Solid revenue growth of 15.3% › Strong book-to-bill ratio of 1.18 -> backlog of EUR 1,686 million › Strong operating Cash Flow
Slide 7: KPIs FY 2023
KPIs FY 2023 Revenue EBITDA Operating Net Income after NCI* (in EUR m) (in EUR m) (in EUR m) + 15.3% + 15.1% 87 Cent EPS + 41.4% 123 Cent + 35.7% 1,225.9 126.0 75.3 1,063.7 109.5 55.5 FY 2022 | FY 2023 FY 2022 | FY 2023 FY 2022 | FY 2023 * 2022 adj for DCO/sold IT, reported EBITDA EUR 70.0 Mio. * 20
Slide 8: Kontron Group Balance Sheet
Kontron Group Balance Sheet Equity and liquidity very strong in m EUR 12/31/2023 12/31/2022 in m EUR 12/31/2023 12/31/2022 NON-CURRENT ASSETS 492.5 412.1 EQUITY 604.0 635.7 Fixed Assets 449.4 379.0 accumulated results 462.8 449.6 as of Property, plant and equipment 110.4 95.5 as of Treasury shares -
Slide 9: Strong cash generation
Strong cash generation Liquidity further expanded Cash generation (op CF) Status liquidity (In EUR m) › EUR 332m cash on hand › EUR 19m ST receivables from Vinci (in Q2) 117 › EUR 130m available lines 95 › EUR 90m additional lines amidst Katek integration 44 Liquidity amounts to EUR 600m after Katek
Slide 10: Kontron: Major KPIs
Kontron: Major KPIs Strong operational development in EUR m 2023 2022 Comment Revenues 1,225.9 1,063.7 +15% growth driven by strong demand, organic growth: +9.5% Gross Margin (in %) 38.0% 34.7% Target: 40% EBITDA 126.0 109.5* One-time restructuring effect of IT service business; 2025 even higher mar
Slide 11: Kontron 2024 structure
Kontron 2024 structure 10 new divisions in 3 segments Europe Global Software + Solutions Industrial Telecom North America Software Transport 670m 190m 230m 80m 200m Services ODM Asia Aerospace GreenTec 210m 280m 90m 140m 330m Rev FC 24* EBITDA** 10% Rev FC24* EBITDA** 8% Rev FC24* EBITDA** 15% GM 35
Slide 12: Europe: Strong growth in basic IoT technology
Europe: Strong growth in basic IoT technology Revenue & Industrial EBITDA* EBITDA Margin** Order Entry › Strong growth driven by smart factories, › Production reshoring to Europe Book-to-bill: 1.06 Communications › Growth potential in Communications/5G, driver in 2025 832.5 788.0 68.6 8.7% IT servic
Slide 13: Global: Back to normal profitability
Global: Back to normal profitability Sales channel to sell European technology & customizing Revenue & North America EBITDA* EBITDA Margin** Order Entry › Solid profit growth, strong defense › Focus on reselling (+ local services) to USA Book-to-bill: 0.92 9.2% Asia 207.7 › Slightly burdened by Chin
Slide 14: Software + Solutions: Fast growing
Software + Solutions: Fast growing Strongest growing segment with strongest margin Revenue & Software (susietec®) EBITDA* EBITDA Margin** Order Entry › Launch KontronOS and KontronGrid › Become Windows standard for machines Book-to-bill: 1.86 Transportation (high-speed trains) › Strong political sup
Slide 15: Design win volume increases to EUR 4.1 billion
Design win volume increases to EUR 4.1 billion Design Wins (in EUR mn) 4.10 3.41 2.97 2.35 2020 2021 2022 2023 15
Slide 16: Katek integration
Katek integration Jan 18 Signing: 60% in Katek for EUR 129m Road to Net Income improvement Katek Net income target FY25 March Closing & consolidation March EUR 125m acquisition loan Net income 23m FY24 Savings 44m Mid April EUR 15/share tender offer launched Gross margin FY25 increase*** 6m Gross ma
Slide 17: Investment Rationale: Complementary solutions
Investment Rationale: Complementary solutions Transforming Green Technologies with IoT software Product Synergies (Gross Margin) Major product synergies (EUR 32m) 38% 31% 37% 40% › Add Kontron IoT Software = security, grid control, remote maintenance › Katek solar inverters + Kontron SW = smart IoT
Slide 18: Strong brainpower for unique industry solutions
Strong brainpower for unique industry solutions 3,600 engineers (incl. Katek) Software for all IoT end devices Smart solutions for vertical markets ➢ High margins and long-term service contracts ➢ High margins and long-term service contracts Mission-critical control systems for high-speed trains Bas
Slide 19: History and 2024 forecast
History and 2024 forecast Continuous strong growth of revenues and net income 2,000 120 100 1,500 Results Guidance 80 (in EUR million) 2023 2024 1,000 60 Revenue 1,226 1,900 40 500 20 Net Income 77.7 100 0 0 2017 2018 2019 2020 2021 2022 2023 2024E Revenue (left scale) Backlog (left scale) Net incom
Slide 20: Why invest in Kontron?
Why invest in Kontron? Profitable long-term growth Engineering excellence › Unmatched R&D power of 3,600 engineers (incl. Katek) › Excellent position to profit from the megatrends digitalisation, and annual spending of EUR 200m AI and sustainability via IoT products › Cost-efficient in-house enginee
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
Slide 22: Appendix
LV kontron The Power of loT APPENDIX
Slide 23: The Kontron Share
The Kontron Share SDAX® & TecDAX® member Shareholder Structure Coverage** Erste Group Buy: EUR 26.50 Hauck & Aufhäuser Buy: EUR 30.00 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 24: Update on ESG: Achievements
Update on ESG: Achievements Recognition of Kontron’s ESG efforts › MSCI: BBB (stable since 2021) › EcoVadis: 50 - rated above industry average › Sustainalytics: 20.2 (low risk starts at 20) › Moody’s: 38 – improvement by 4 points since 2022 › ISS ESG: C- (stable) › Double Materiality Analysis (CSRD
Slide 25: 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 26: Competitive landscape
Competitive landscape FY 2023 results Leap forward in 2024 with Katek Our distinctive competitive advantages Selected competitors in Revenue Region Industrial IoT (in USD m) › Unmatched R&D scale: EUR 200m annual investments Curtiss Wright* 2,845 North America Advantech 2,100 Asia › Cost efficient s