Slide 1: Transformation complete: Industrial Motion Control Technology
AMSTERDAM, 27 FEBRUARY 2026 Transformation complete: Industrial Motion Control Technology Q4/Full Year 2025 results [Confidential]
Slide 2: Agenda
Agenda Q4/FULL YEAR 2025 RESULTS 1. Key highlights 2. Strategic position 3. Full Year 2025 financial review 4. Operational update 5. Outlook 6. Q&A [Confidential] 2
Slide 3: Cautionary note regarding forward looking statements
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS Certain statements contained in this presentation constitute forward-looking statements. These statements may include, without limitation, statements concerning future results of operations, the Company's share of new and existing markets, general
Slide 4: 2. Key highlights
2. Key highlights [Confidential]
Slide 5: Key highlights
Key highlights Q4 AND FULL YEAR 2025 Financial highlights − Normalized Q4 EBITDA grew 73%, driven by higher volumes, margin improvements, and cost control. − Long-term financial targets achieved ahead of plan, with FY 2025 at a 15.5% EBITDA margin and 24.6% ROIC. − Normalized free cash flow of EUR 2
Slide 6: 3. Strategic position
3. Strategic position [Confidential]
Slide 7: Divesting automotive: strategic rationale
Divesting automotive: strategic rationale MORE FOCUS, BETTER PROFITABILITY − Automotive requires high investment but delivers lower margins. − Industrial investments offer stronger growth and profitability. − The China divestment completes the shift away from Automotive. − The partnership with Knorr
Slide 8: A leaner, more profitable Group
A leaner, more profitable Group STRATEGIC JOURNEY 2015 2025 (% of revenue) STRATEGIC JOURNEY Knorr-Bremse (% of revenue) Partnership 12% 17% Industrial Brakes Industrial Automotive 38% 22% INTORQ (2020) Solero (2024 / 2025) Actuators & Controls 3T (2021) China MBO (2025) Automotive 66% Knorr-Bremse
Slide 9: Strategic Phase-out of Remaining Automotive Activities
Strategic Phase-out of Remaining Automotive Activities PARTNERSHIP KNORR-BREMSE (KB) − Partnership secures factory continuity as Kendrion volumes decline − Cash flow contribution of partnership of around EUR 7 million − Employees to be transferred: around 190 FTE Kendrion ownership KB ownership − Co
Slide 10: Kendrion today
Kendrion today WE KEEP ADVANCED MACHINES MOVING SAFELY, PRECISELY, AND RELIABLY. − Today, Kendrion enables industrial machines and systems to move with safety, precision, and reliability. − With our advanced motion technology and control solutions, we ensure our customers’ systems perform exactly as
Slide 11: Turning digital innovation into real world motion
Turning digital innovation into real world motion A SIGNIFICANT OPPORTUNITY FOR KENDRION − Today’s digital innovation, transforms industrial machines. − We invest in products that power the next generation of machines: robotics and automation, safety systems, renewable energy, and med-tech. − Precis
Slide 12: Kendrion today: revenue per end-market
Kendrion today: revenue per end-market FULL YEAR 2025 Robotics & Automation Integrated Safety Systems Healthcare & MedTech Energy & Transmission ~€ 100 million ~ € 50 million ~ € 20 million Infrastructure ~ € 15 million Key growth drivers: Key growth drivers: Key growth drivers: Key growth drivers:
Slide 13: Investment criteria for new projects
Investment criteria for new projects DRIVING PROFITABLE GROWTH − New business investment decisions are made per project based on a set of financial criteria: o Healthy growth potential of at least 10% per year, and typically more. o Steady-state, fully costed EBITDA margin >20%. − Clear differentiat
Slide 14: Robotics and automation, Integrated Safety
Robotics and automation, Integrated Safety DRIVING PROFITABLE GROWTH Slim line PM Brake Ultra compact lock − Optimized for high-performance use in − Low-power design suitable for space-constrained Cobots and Humanoid solar-powered units like parcel robots. lockers. − Patent granted, securing full IP
Slide 15: Medical technology, Energy
Medical technology, Energy DRIVING PROFITABLE GROWTH Bio-compatible pressure regulator Nuclear Power Plant Steam Relieve Valve − Valves and pressure regulator family for dialysis and anesthesia systems. − Actuator solenoids for safety valves in primary and secondary nuclear steam − Compliant with EU
Slide 16: Summary: the right to win
Summary THE RIGHT TO WIN Focussed on high growth, high margin industrial end-markets benefitting from secular trends Unique expertise and differentiated technologies enabling safe, precise and reliable motion High barriers to entry: IP, regulatory approvals, deep application know-how and experienced
Slide 17: 4. Full Year 2025 financial review
4. Full Year 2025 FINANCIAL REVIEW [Confidential]
Slide 18: 2024–2028 ESG Program
2024 – 2028 ESG PROGRAM ACHIEVEMENTS IN 2025 Targets Targets Targets • Progressing emission • Implement gender diversity targets at • Integratation of ESG metrics into reduction 27% in 2025 Business Group level for indirect staff sourcing process Environmental • Increase renewableelectricity Social
Slide 19: Business review
Business review Q4 AND FULL YEAR 2025 RESULTS Q4 2025 highlights − Strong sales growth supported by all business groups. − Normalized EBITDA margin increase of 600bp driven by volume growth, pricing actions and cost reductions. − Transaction gain of EUR 5.0 million on China divestment recorded in re
Slide 20: Business review: development by segment
Business review DEVELOPMENT BY SEGMENT Industrial IAC -1% − Revenue down 2% for the full year primarily due to IAC +11% IB + 3% IB -2% MOB + 4% weak manufacturing activity in Germany during the MOB + 11% first half year. − Performance improved in H2 with Q4 delivering 7% growth in Q4 as markets bega
Slide 21: Business review: cash flow and financial position
Business review CASH FLOW AND FINANCIAL POSITION Highlights − Strong normalized free cash flow of EUR 25.6 million, with cash conversion of 67% of continued EBITDA. − Cash flow supported by a net working capital inflow from working capital and capital investments EUR 6.0 million below depreciation.
Slide 22: Dividend proposal and cash distribution
Business review DIVIDEND PROPOSAL AND CASH DISTRIBUTION Highlights − Dividend policy provides for a payout of at least 50% of normalized net profit before amortization. − 2025 payout comprised a EUR 0.45 per share optional dividend over FY 2024 profit and a EUR 1.00 per share special dividend, from
Slide 23: 5. Operational update
5. Operational update [Confidential]
Slide 24: Industrial Brakes
Industrial Brakes FULL YEAR 2025 Revenue development − Revenue of EUR 93.7 million, 2% below 2024 (EUR 95.9 million). − Improving orderbook resulted in revenue growth in Q4. Improving profitability − Added value significantly improved: 55.7% (2024: 52.0%). Product development − Slim-PM series succes
Slide 25: Industrial Actuators and Controls
Industrial Actuators and Controls FULL YEAR 2025 Revenue development − Stable at EUR 110.4 million. − Decline in textile machinery compensated by growth in logistics and medical. Improving profitability − Added value further improved from 63.0% to 63.7%. Product development − 2 new customer inductio
Slide 26: 6. Outlook
6. Outlook [Confidential]
Slide 27: Outlook 2026
Outlook 2026 − European economy is starting to improve. − Kendrion expects to benefit from long-term growth trends, in Robotics, Automation, Safety systems, Med- Tech and Renewable Energy with AI as an accelerator. − We anticipate better economic conditions, a stronger pipeline, and rising customer
Slide 28: 2027 Financial targets - unchanged
2027 Financial targets - unchanged Expectation: 5-8% annual Revenue growth EBITDA margin 15%-18% from 2025 ROI* 23%-27% from 2027 At least 50% of Dividend Normalized Net Profit *EBITA / invested capital, excluding goodwill and intangibles arising from acquisitions [Confidential] 28
Slide 29: [Confidential]
We ape KENDRION KENDRION