Kontron Ag · XETR:KTN
Kontron — S&T — Q3 2021 Earnings Presentation
24 slides from Kontron's earnings presentation, Nov 4, 2021
Slide 1: IR Presentation
IR PRESENTATION Hannes Niederhauser, CEO Richard Neuwirth, CFO 4th November 2021
Slide 2: High- and Lowlights 9M 2021
HIGH- AND LOWLIGHTS 9M 2021 HIGHLIGHTS LOWLIGHTS › 9M 2021: › Strong order intake only partially converted to revenues › Growth of 9.2% in revenues › Chip shortage: EUR 80 Mio. of not delivered orders as of 30/9 › Increase in EBITDA by 2.3% › Normalization expected in 2022 › Continuing strong order
Slide 3: Global Chip-Shortage Update
GLOBAL CHIP-SHORTAGE UPDATE GENERAL DEVELOPMENT & OUTLOOK S&T STRATEGY IN THE CHIP CRISIS › Lack of investments into expensive chip factories during pandemic › Business Impact: › IT Services, Transportation, IoT Software no real impact (70% of Rev) › Supply chain to semiconductor suppliers also shor
Slide 4: Impact of Global Chip-Shortage on S&T Guidance FY 2021
IMPACT OF GLOBAL CHIP-SHORTAGE ON S&T GUIDANCE FY 2021 ADJUSTED AT CAPITAL MARKET DAY REVENUES Q1-21 Q2-21 Q3-21 FY 2021 (in EUR Mio.) Delayed shipments 10.2 38.3 80 40 – 110 Guided revenues 300 334 340 1,400 Impacted revenues 294 (Act.) 306 (Act.) 313 (Act.) 1,330 – 1,400 EBITDA in % 9.6% 10.0% 8.7
Slide 5: KPIs 9M 2021
KPI´S 9M 2021 GLOBAL CHIP CRISIS EFFECTS BUSINESS REVENUE GROSS PROFIT EBITDA (in EUR Mio.) (in EUR Mio.) (in EUR Mio.) 900 350 80 800 913.8 300 347.7 83.7 85.6 700 836.4 317.7 250 60 600 500 200 400 150 40 300 100 200 20 50 100 + 9.2% + 9.4% + 2.3% 0 0 0 9M 2020 | 9M 2021 9M 2020 | 9M 2021 9M 2020
Slide 6: KPIs Q3 2021
KPI´S Q3 2021 PEAK OF CHIP CRISIS IN Q3 2021 REVENUE GROSS PROFIT EBITDA (in EUR Mio.) (in EUR Mio.) (in EUR Mio.) 350 30 300 100 114.6 31.7 297.7 313.2 106.1 25 27.3 250 20 200 150 15 50 100 10 50 5 + 5.1% + 8.0% - 13.9% 0 0 0 Q3 2020 | Q3 2021 Q3 2020 | Q3 2021 Q3 2020 | Q3 2021 NET INCOME AFTER N
Slide 7: S&T Group Balance Sheet
S&T GROUP BALANCE SHEET Mio. EUR 30/09/2021 31/12/2020 30/09/2021 31/12/2020 NON-CURRENT ASSETS 512,0 506,0 CAPITAL AND RESERVES 405,6 409,5 Fixed Assets 471,2 469,3 Equity 405,6 409,5 as of Property, plant and equipment 130,3 135,1 as of Treasury shares -46,8 -26,2 as of Goodwill 206,7 199,5 NON-CU
Slide 8: TTS Program | Increase Transparency Additional Disclosures 2021
TTS PROGRAM | INCREASE TRANSPARENCY ADDITIONAL DISCLOSURES 2021 IN TEUR EBIT ADJUSTMENTS Q3 IN TEUR OP. CASHFLOW ADJUSTMENTS Q3 11,728 STATED EBIT Q3 -1,972 STATED OP. CASHFLOW -370 Expenses stock options -3,655 Increase in A/R factored from 30.06.2021 to 31.09.2021 -521 Severance payments / restruc
Slide 9: TTS Program | Increase Transparency Additional Disclosures 2021
TTS PROGRAM | INCREASE TRANSPARENCY ADDITIONAL DISCLOSURES 2021 ACCRUALS ANALYSIS (in TEUR) P&L impact 2019 2020 9M 2021 Comment TOTAL ACCRUALS no 84,348 67,319 Accruals added by acquisitions no 57,651 * 2,567 897 * thereof EUR 54 Mio. Kapsch Accruals used via P&L no -24,238 ** -21,600 ** -8,148 **
Slide 10: IT/IoT Services
IT/IOT SERVICES REVENUE* EBITDA ADJ. EBITDA › Region: 30% DACH + 70% in CEE (mainly EU) BEFORE HQ FEE** MARGINS*** › Evaluation of divestment of IT Services started › 10.1% of growth in revenues › Minor impact of chip crisis (< EUR 5 Mio.) 32.1 406.9 › EBITDA margin improved to > 9% and focus on 9.6
Slide 11: IoT Solutions Europe
IOT SOLUTIONS EUROPE 41.5 REVENUE* EBITDA ADJ. EBITDA › Very strong order intake of EUR 718 Mio. in 2021 YTD BEFORE HQ FEE** MARGINS*** results in a book to bill of 1.41 › EUR 56 Mio. of due orders delayed to Q4/2022 as a result of the chip crisis › EBITDA margin diluted by allocating fix costs to l
Slide 12: IoT Solutions America
IOT SOLUTIONS AMERICA REVENUE* EBITDA ADJ. EBITDA › Weak results in 2021 and Q3 based on: BEFORE HQ FEE** MARGINS*** › EUR 19 Mio. delayed shipments (chip shortage) › Avionics only EUR 8 Mio. YTD (slow recovery started) 10 10.1 9.3% › Record book to bill of 1.57 YTD 2021 will lead to strong 106. rec
Slide 13: Backlog & Opportunities
BACKLOG & OPPORTUNITIES ORDERS AND DESIGN WINS REMAIN STRONG IN Q3-2021 BACKLOG DEVELOPMENT REMAINS POSITIVE 2021 DESIGN WINS COUNTRY VOLUME EUR Control systems for high-speed train CZ,LIT,DE,FR,UK,BG 112 Mio. BOOK-TO-BILL RATIO YTD 1.20 1.35 1.57 1.31 + 22% US ministry USA 51 Mio. 1,200 Machine bui
Slide 14: M&A Strategy (Adjusted in Case of Project Focus)
M&A STRATEGY (ADJUSTED IN CASE OF PROJECT FOCUS) M&A IS A CORE COMPETENCE OF S&T M&A VOLUME › Half of growth by M&A, half by organic growth (in EUR Mio.) › In case of Focus: accelerate acquisitions to compensate for divested biz Kontron 350 › Key synergies: M&A › Cross-sell IoT Software to new custo
Slide 15: Short and Midterm Goals | Vision 2030
SHORT AND MIDTERM GOALS | VISION 2030 GUIDANCE 2021 AGENDA 2023 → 2025 INCL. FOCUS Revenue: EUR 1,330 – EUR 1,400 Mio. 5 years plan 2018 Ag2023 Ag2025 EBITDA: EUR 133 – EUR 140 Mio. Revenue 990 Mio. 2,000 Mio. 2,000 Mio. EBITDA 90.5 Mio. 220 Mio 260 Mio. VISION 2030 SMART Transformation to M&A Proje
Slide 16: Summary
SUMMARY ACHIEVEMENTS TARGETS › Revenue growth of 9.2% in 9M 2021 vs. 9M 2020 › Guidance 2021: › Revenue > EUR 1.33 – 1.4 Bn. › Keep EBITDA level of 10% despite chip crisis › EBITDA-Margin @ 10% › Strong order entry of EUR 1.137 Mio. in the first 9 months › EUR 2 Bn. Revenues at > in 2025 @ 13% EBITD
Slide 17: Earnings Call Q&A Session
EARNINGS CALL Q&A SESSION › Q: You mentioned EUR 80 million overhang - what's your visibility that › S&T: Chip makers increase their capacity, and we have some feedback that you can fully deliver the overhang next year? Is there any risk that this complex chips will be delivered starting by in Q1 ne
Slide 18: Earnings Call Q&A Session
EARNINGS CALL Q&A SESSION › Q: You said part of it was capitalised or was the entire 1 million › S&T: It was just capitalised if it would have brought improvements, so most of capitalised? it was expensed. › Q: About the price increases and the higher raw material prices. You › S&T: There are two im
Slide 19: Earnings Call Q&A Session
EARNINGS CALL Q&A SESSION › Q: You mentioned that you got some signals from Intel, that the › S&T: If you look at just these specific impacted entities, the margin was soft in procurement of chips should be easier, probably in Q4. Any other things June and July. Now, with the more and more happening
Slide 20: Earnings Call Q&A Session
EARNINGS CALL Q&A SESSION › Q: Looking at the Q3 cost ratios, your gross margin profit margin was in › S&T: There are effects in we had this year. E.g. we had this year 2 customers in fact up slightly YoY but the other expenses the other operating avionics that we had to write off, in America. I don
Slide 21: Earnings Call Q&A Session
EARNINGS CALL Q&A SESSION › Q: The Americas segment is obviously struggling this year to get a 3- › S&T: You should get what you pay for. America is a strategic target as well digit revenue. It is a relatively small segment, and you were talking China. As said, we want to become a global IoT player
Slide 22: Earnings Call Q&A Session
EARNINGS CALL Q&A SESSION › Q: Your tax line was positive in Q3. Pretty much catching up with the › S&T: The positive impact in Q3 under our income taxes is coming from our shortfall that you had on the profit line so it's just wondering where that different tax assets which we can utilise also in o
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: S&T AG
S&T AG Industriezeile 35 A-4021 Linz www.snt.at IR Contact: ir@snt.at +43 (1) 80191 - 1196 24