Kontron Ag · XETR:KTN
Kontron — Investor Presentation (May 2024)
26 slides from Kontron's investor presentation, May 2024
Slide 1: Explore the Kontron Group – Investor Presentation
Explore the Kontron Group We are a fast-moving multinational technology leader. Investor Presentation May 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: KPIs Q1 2024
KPIs Q1 2024 Revenue EBITDA Net Result after NCI* (in EUR m) (in EUR m) (in EUR m) + 35.9% + 19.6% (adj 32.4%) 26 Cent EPS stable 26 Cent 356.1 262.0 35.4 39.2 16.6 16.3 29.6 Q1 2023 | Q1 2024 Q1 2023 | Q1 2024 | Q1 2024 adj. Q1 2023 | Q1 2024 Adjustment of Q1 23 revenues due to changed assessment o
Slide 6: Kontron Group Balance Sheet
Kontron Group Balance Sheet Equity and liquidity very strong in m EUR 3/31/2024 12/31/2023 in m EUR 3/31/2024 12/31/2023 NON-CURRENT ASSETS 716.2 492.5 EQUITY 670.2 604.0 Tangible assets 224.5 110.4 Accumulated results 479.1 462.8 Intangible assets 146.0 102.4 as of treasury shares -44.7 -43.0 Goodw
Slide 7: Additional disclosures
Additional disclosures Q1 2024 Katek share in Q1 results Kontron Katek share in EUR m Result Extraordinary Effects In EUR m Q1/24 Q1/24 (March) EBITDA (reported) 35.4 Reported revenues 356.1 54.1 Gross margin (in %) 41.3% 35.8% Adjustment 3.8 M&A and one-time effects EBITDA (adjusted) 39.2 5.3 Net r
Slide 8: Strong cash generation
Strong cash generation Liquidity further expanded Status liquidity Cash generation per quarter Q1 (operating Cash Flow) (In EUR m) › EUR 356m cash and cash equivalents › EUR 19m ST receivables from Vinci (in Q2) 23.8 5.2 › EUR 130m available lines › EUR 90m additional lines amidst Katek integration
Slide 9: Kontron: Major KPIs
Kontron: Major KPIs Strong operational development in EUR m Q1 2024 Q1 2023 Comment Revenues 356.1 262.0 +35.9%; Katek contributed EUR 54m Gross Margin (in %) 41.3% 41.0% Strong gross margin result of the strategic realignment towards IoT EBITDA 35.4 29.6 Q1 2004 includes 3.8m M&A costs and one-off
Slide 10: Design win volume increases to EUR 5.4 billion
Design win volume increases to EUR 5.4 billion Backlog rose to EUR 1.8 billion Design Wins (in EUR bn) 5.35 4.10 3.41 2.97 2.35 2020 2021 2022 2023 Q1-24 Backlog 1.84 (in EUR bn) 1.69 1.46 1.16 0.93 2020 2021 2022 2023 Q1-24 10
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 industrial IoT technology
Europe: Strong growth in industrial IoT technology Revenue & Industrial EBITDA* EBITDA Margin** Backlog › Represents 65% of Europe @ 10,6% Ebitda › Growth driven by smart factories reshoring to Europe Book-to-bill: 1.12 Communications › Growth potential in Communications/5G, driver in 2025 15.8 16.9
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** Backlog › Solid profit growth, strong defense › Focus on reselling (+ local services) to USA Book-to-bill: 1.23 91.4 4.6 Asia 8.1% 7.8% 4.0 › Slightly burdened
Slide 14: Software + Solutions: Fast growing
Software + Solutions: Fast growing Strongest growing segment with strongest margin Revenue & Software (susietec®) EBITDA* EBITDA Margin** Backlog › Launch KontronOS and KontronGrid › Become Windows standard for machines Book-to-bill: 2.06 Transportation (high-speed trains) › political support, Q1 15
Slide 15: Katek integration
Katek integration Jan 18 Signing: 60% in Katek for EUR 129m Road to Net income improvement Kontron March Closing & consolidation Target Added by Agenda March EUR 125m acquisition loan Katek Kontron Net income growth 2025 Added by guidance 2025** April 15 EUR 15/share tender offer launched Katek FY24
Slide 16: Why is Katek a good acquisition?
Why is Katek a good acquisition ? Transforming Green Technologies with IoT software Product Synergies (Gross Margin) Huge product synergies (we expect +5% GM = EUR 32m) 38% 40% 31% › Katek’s solar and EV charger products are highly profitable › Adding intelligence and IoT connectivity will increase
Slide 17: Strong brainpower for unique industry solutions
Strong brainpower for unique industry solutions 3,000 engineers 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 Basic IoT softwar
Slide 18: History and 2024 forecast
History and 2024 forecast Continuous strong growth of revenues and net income 2,000 200 1,500 150 Guidance Y-o-y divest IT (in EUR million) 2024 growth 1,000 100 Revenue 1,900 55% 500 50 EBITDA 190 51% 0 0 2017 2018 2019 2020 2021 2022 2023 2024E Net Income 100 33% Revenue (left scale) Backlog (left
Slide 19: 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 20: Q&A
Explore the Kontron Group We are a fast-moving multinational technology leader. Q&A
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
Explore the Kontron Group We are a fast-moving multinational technology leader. 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