Kontron Ag · XETR:KTN
Kontron — Investor Presentation (June 2024)
28 slides from Kontron's investor presentation, June 2024
Slide 1: Investor Presentation June 2024
Investor Presentation June 2024
Slide 2: Who we are
Who we are Leader of Smart Industrial IoT Solutions Focused on large and growing B2B-IoT market 7,800 1.9bn 190m Number of connected IoT devices grows globally by 30% Employees* Revenue (EUR)* Invested R&D (EUR)* Fully integrated technology platform 190m 100m >10% Integrated (SW+HW) solutions EBITDA
Slide 3: At the heart of many disruptive industries
At the heart of many disruptive industries High-speed trains Autonomous Driving In-flight communication systems Smart Factory Smart Solar & GreenTec Footer 3
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 Railways 31% growth 21% adoption machines connected of 5G across mobile internet to th
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: 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 7: 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 8: Additional disclosures
Additional disclosures Q1 2024 Katek share in Q1 results Kontron Katek share Organic growth Q1 - 2024 Q1-2024 Q1-2023 In EUR m Q1/24 Q1/24 (March) Reported revenues 356.1 262.0 Reported revenues 356.1 54.1 Acquisitions in Q1-2024 -88.1 Gross margin (in %) 41.3% 35.8% Divestments of Q1-2023 -18.7 EBI
Slide 9: 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 10: 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 11: 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 11
Slide 12: Kontron 2024 structure
Kontron 2024 structure 10 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% GM
Slide 13: 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 14: 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 15: 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 16: Katek integration
Katek integration Margin step forward Jan 18 Signing: 60% in Katek for EUR 129m Road to Net Income improvement Kontron March Closing & consolidation Target Added by Kontron Agenda March EUR 125m acquisition loan Net income Katek growth 2025 Added by guidance 2025** Katek FY24 incl. April 15 EUR 15/s
Slide 17: Why is Katek a good acquisition?
Why is Katek a good acquisition ? Transforming Green Technologies with IoT software Product Synergies (Gross Margin) 38% 40% Huge product synergies (we expect +5% GM = EUR 32m) 31% › Katek’s solar and EV charger products are highly profitable › Adding intelligence and IoT connectivity will increase
Slide 18: Strong brainpower for disruptive applications
Strong brainpower for disruptive applications 3,000 engineers = highest engineering power in the industry 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 Basic IoT software (“Windows f
Slide 19: Revenues potential for disruptive applications
Revenues potential for disruptive applications Extremely strong growth in upcoming years 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
Slide 20: 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 21: Why invest in Kontron?
Why invest in Kontron? Profitable long-term growth Engineering excellence › Unmatched R&D power of 3,000 engineers › Present in several high growth markets – disruptive and annual spending of EUR 190m technologies › Cost-efficient in-house engineering resources in CEE (average › Margin improvement o
Slide 22: Q&A
Q&A
Slide 23: 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 24: Appendix
LV kontron The Power of loT APPENDIX
Slide 25: The Kontron Share
The Kontron Share SDAX® & TecDAX® member Shareholder Structure Coverage** Erste Group Buy: EUR 26.50 Hauck & Aufhäuser Buy: EUR 36.50 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 26: 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: stable › Double Materiality Analysis (CSRD requi
Slide 27: 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 › Connecting sustainable Energy and ESG for higher perform
Slide 28: Competitive landscape
Competitive landscape FY 2023 results Leap forward in 2024 Our distinctive competitive advantages Selected competitors in Revenue Region Industrial IoT (in USD m) › Unmatched R&D scale: EUR 190m annual investments Curtiss Wright* 2,845 North America Kontron 2,100 Europe › Cost efficient solutions: E