Kontron AG · XETR:KTN

Kontron — S&T — Q3 2019 Earnings Presentation

15 slides from Kontron's earnings presentation, November 2019

  1. Slide 1: Company Presentation: Q3 2019 Results

    COMPANY PRESENTATION Q3 2019 Results | November 2019 Hannes Niederhauser, CEO Richard Neuwirth, CFO

  2. Slide 2: S&T Group Figures: Good Results in All Parameters

    S&T GROUP FIGURES: GOOD RESULTS IN ALL PARAMETERS Revenue (in EUR Mio.) Gross profit (in EUR Mio.) 753,2 279,9 660,0 + 18% 235,9 (35,7%) (37,2%) + 30% 2018 2018 2019 + 14% 237,3 279,4 2019 + 19% 81,1 105,4 (37,7%) (34,2%) 9M 2019 comparison Q3 2019 comparison 9M 2019 comparison Q3 2019 comparison EB

  3. Slide 3: S&T Highlights

    S&T HIGHLIGHTS  Revenue 9M 2019 (9M 2018): +14,1% EUR 753,2 Mio. (EUR 660,0 Mio.) Profit Focus  EBITDA 9M 2019 (9M 2018): +25,3% EUR 71,7 Mio. (EUR 57,2 Mio.)  Net income after NCI 9M 2019 (9M 2018): +13,5% EUR 29,0 Mio. (EUR 25,6 Mio.)  Manufacturing cooperation and IoT cooperation with Foxconn

  4. Slide 4: IoT Solutions Europe Segment Drives Profitability

    “IOT SOLUTIONS EUROPE” SEGMENT DRIVES PROFITABILITY Revenue 9M 2018 vs 9M 2019* EBITDA 9M 2018 vs 9M 2019 Adjusted EBITDA margins 9M**** 44,9 -3,4*** 14,0% 14,0% Isolated Q3 2019 382,1 EBITDA margin 41,5 improved to 10,7% 337,6 299,6 300,2 34,5 9,3% 17,5 8,6% 24,5 +7,0*** 5,4% 122,8 116,5** 14,7 9,3

  5. Slide 5: Kapsch M&A: Turnaround Faster Than Expected

    KAPSCH M&A: TURNAROUND FASTER THAN EXPECTED Status Turnaround measures 2019 2020 2021 Revenues / Revenues: 2019: stop EUR 20 Mio. - - 4,8 Mo. Increase Decrease Sum Growth unprofitable biz, 2021: 10% growth Sales Sales channel synergies 1,0 Mio. 3,2 Mio. - Synergies Synergies Savings Use Kapsch Softw

  6. Slide 6: Status PEC Program (Profitability | Efficiency | Cashflow)

    STATUS PEC PROGRAM (PROFITABILITY | EFFICIENCY | CASHFLOW) Profitability Efficiency Cashflow GOAL: INCREASE EBITDA MARGIN GOAL: OPTIMIZATION AND EFFICIENCY GOAL: GENERATE EUR 60 MIO. CASH MID TERM BY 2% GAINS ACROSS THE GROUP ACROSS THE GROUP  Better ROI: Global roll out of new  Reduce/merge numbe

  7. Slide 7: Status PEC Program: Operating Cash Flow

    STATUS PEC PROGRAM (PROFITABILITY | EFFICIENCY | CASHFLOW) Operating cash flow Operating cash flow 9 months (in EUR Mio.) (in EUR Mio.) Q2 2019 Q3 2019 in EUR Mio. EUR 26 Mio. 4,5 Revenues 248,7 279,4 one-time effect 0 61,4 ~60 95 days 84 days 9M 2015 9M 2016 9M 2017 9M 2018 9M 2019 Inventory (167 M

  8. Slide 8: One-Time Effects on Profit in Q3 2019

    ONE-TIME EFFECTS ON PROFIT IN Q3 2019 in TEUR One time effects in TEUR R&D capitalization Q3 in TEUR PPA +1.649 Release purchase price consideration +4.193 Capitalization R&D in Q3* 1.394 Q3 2018 Amortization -396 Restructuring – close Fremont office -3.882 Amortization of R&D in Q3 2.084 Q3 2019 Am

  9. Slide 9: S&T Group Balance Sheet

    S&T GROUP BALANCE SHEET Mio. EUR 30.09.2019 31.12.2018 30.09.2019 31.12.2018 NON-CURRENT ASSETS 447,3 292,5 CAPITAL AND RESERVES 370,1 367,3 Fixed Assets 407,6 262,7 Equity 370,1 367,3 Other Assets 39,8 29,8 NON-CURRENT LIABILITIES 340,1 131,9 CURRENT ASSETS 711,7 555,5 Long-term loans and borrowing

  10. Slide 10: Acquisition Strategy - Agenda 2023: 2 Bn of Revenues

    ACQUISITION STRATEGY - AGENDA 2023: 2 BN OF REVENUES  M&A focus on restructuring cases with low multiples and technology/synergy potential  EUR 200 Mio. and 30 Mio. in shares (buy back) for M&A  add EUR 100 Mio revenues p.a.  EUR 100 Mio for organic growth  add EUR 100 Mio revenues p.a. Acquisi

  11. Slide 11: S&T's Growth Path Continues: EUR 2 Bn. in 2023

    S&T‘S GROWTH PATH CONTINUES: EUR 2 BN. IN 2023 EBITDA Revenue (in EUR Mio.) (in EUR Mio.) > 100 90,5 IoT Solutions | America 1.145 IoT Solutions | Europe 991 68,1 IT Services 882 34,4 468 504 28,3 385 22,9 2014 2015 2016 2017 2018 2019fc 2014 2015 2016 2017 2018 2019fc Backlog EUR 12/13 12/14 12/15

  12. Slide 12: Summary

    SUMMARY  PEC in Q3: EUR 16 Mio. operating cash flow and 37,7% gross margin  2 Bn. revenues in 2023  9M 2019: Revenue growth of 14%  Ongoing GM Improvement to and EBITDA growth of 25% 40% and EBITDA to > 10% Achievements  9M 2019: Project pipeline 22% up Targets  MDAX membership to EUR 1,99 Bn

  13. Slide 13: 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

  14. Slide 14: Q&A Session

    Q&A SESSION Thank you for your attention 14

  15. Slide 15: S&T AG

    S&T AG Industriezeile 35 A-4021 Linz www.snt.at IR Contact: ir@snt.at +49 821 4086 114 15

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