Kontron Ag · XETR:KTN
Kontron — Investor Presentation (February 2024)
22 slides from Kontron's investor presentation, February 2024
Slide 1: Explore the Kontron Group – Investor Presentation
Explore the Kontron Group We are a fast-moving multinational technology leader. Investor Presentation February 2024
Slide 2: Who we are
Who we are Leader of Smart Industrial IoT Solutions › Focused on the large, diverse and growing 8,000 1.9bn Industrial IoT market (IIoT) + GreenTec Employees Revenue (EUR)* › Fully integrated technology platform Integrated (SW+HW) solutions for smart factories, 100m >10% transportation, data connect
Slide 3: The IoT Market
The IoT Market Key Metrics Focus Industries 64 billion $ 148.6 billion connected IoT devices by Industrial IoT revenue with 2025 worldwide (from 29 a 11.4% CAGR from 2022 billion in 2022) Smart Factories Transportation 31% growth 21% adoption machines connected of 5G across mobile internet to the In
Slide 4: Katek integration
Katek integration Jan 18 Signing: 60% in Katek for EUR 129m Road to Net Income improvement Katek Net income target FY25 March Expected closing & consolidation March EUR 125m acquisition loan 23m Savings 44m April EUR 15/share tender offer launched FY25 Net income FY24 6m Gross margin increase *** Ma
Slide 5: KATEK: International company with German headquarter
KATEK: International company with German headquarter Strong Footprint as First Mover with Green Technologies eMobility, Renewables/Solar, >1,500 customers Aerospace & Defense, Electronics (e.g. Porsche, Viessmann, Bosch) HQ Munich, Germany EUR >750m (2023E) Footprint in Europe, Revenues North Americ
Slide 6: Investment Rationale: Complementary solutions
Investment Rationale: Complementary solutions Transform pioneering Green Technologies with leading IoT software Pioneering Green technologies Leading IoT Software technology provider › Power electronics (inverters) for solar › Internet access with Firewall security energy storage systems › Remote co
Slide 7: Katek integration: Focus on Margin improvement
Katek integration: Focus on Margin improvement 1. Solar inverters 2. eMobility 3. Avionics 4. ODM Q4: release premium line: Q4: release premium line: add KontronOS = smart home add KontronOS = smart home ▪ Katek brand remains ▪ Security firewall ▪ Convert from EMS to ▪ Security firewall ▪ Bidirectio
Slide 8: Kontron financials – after KATEK acquisition
Kontron financials – after KATEK acquisition Road to Agenda 2025 Kontron Kontron (incl. in EUR m Comment 2023E Katek) 2024E Revenues 1,200 1,900 Agenda 2025 within reach Gross Margin (in %) 39% 37% Phase out low margin business to achieve > 40% in 2025 Net profit >72m 100 39% net profit growth (2024
Slide 9: Kontron 2024 structure (incl. KATEK current outlook)
Kontron 2024 structure (incl. KATEK current outlook) 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
Slide 10: Europe: Biggest segment (before Katek)
Europe: Biggest segment (before Katek) Revenue & Industrial EBITDA* EBITDA Margin** Order Entry › Shows strong growth driven by smart factories and defense Book-to-bill: 1.07 Communications › Growth potential in Communications/5G, driver in 2025 595.9 IoT services 57.7 10.3% 558.6 › EBITDA margin bu
Slide 11: Global: Back to normal profitability (before Katek)
Global: Back to normal profitability (before Katek) Revenue & North America EBITDA* EBITDA Margin** Order Entry › Solid growth, avionics recovery, strong defense › Ongoing price increases base for improved numbers Book-to-bill: 0.94 › Weaker USD burdens numbers slightly 149.5 Asia 139.2 141.1 8.9% 1
Slide 12: Software & Solutions: Fast growing (before Katek)
Software & Solutions: Fast growing (before Katek) Revenue & Transportation (high-speed trains) EBITDA* EBITDA Margin** Order Entry › High-speed trains are driven by political support, high resilience against macroeconomic influences Book-to-bill: 2.09 › Market leader in Europe for GSM-R Software (su
Slide 13: Strongest brainpower in the industry
Strongest brainpower in the industry susietec® IoT software framework Extending susietec® portfolio by Bsquare SquareOne Release of KontronOS (highest security standard) Excellent pool of engineers supported by lean organization EUR 100m pure software revenues Mission-critical control systems for hi
Slide 14: Backlog and Design Wins (before Katek)
Backlog and Design Wins (before Katek) Development since 2020 (in EUR bn) Backlog Design wins Top Design Wins in 9M 2023 Country Volume EUR 3.61 Railway FR 150m 3.41 Avionics US 90m 2.97 Medical DE 60m 2.35 Railway/Security FR 60m Telecommunication AT 50m 1.66 Medical DE 50m 1.46 1.16 Defense US 42m
Slide 15: Kontron leads the IoT competition
Kontron leads the IoT competition Leap foreward Our distinctive competitive advantages Selected competitors in Revenue Region Industrial IoT (in USD m) › Unmatched R&D scale Curtiss Wright* 2,600 North America › >3,600 FTEs, annual budget of EUR 200m Kontron** 2,400 Europe Advantech 2,200 Asia › Cos
Slide 16: Focus on IOT – a fast growing business
Focus on IOT – a fast growing business 2024: 39% net profit growth to EUR 100m 2,500 Revenue CAGR +22% 2,200 300 New Guidance 2024 & Agenda 2025 Net income CAGR +47% 1,900 250 2,000 1,655 2024E Agenda 2025 1,460 200 (in EUR million) 2023E (incl. Katek) (incl. Katek) 1,500 1,160 1,200 1,096 150 1,003
Slide 17: Why invest in Kontron?
Why invest in Kontron? Profitable long-term growth Engineering excellence › Excellent position to profit from the megatrends › Unmatched R&D power of 3,600 engineers and digitalization, AI and sustainability via IoT products annual investment of EUR 200m › Expand high-margin high-growth software bus
Slide 18: 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 19: Appendix
Explore the Kontron Group We are a fast-moving multinational technology leader. APPENDIX
Slide 20: The Kontron Share
The Kontron Share SDAX® & TecDAX® member and candidate for MDAX® Shareholder Structure Coverage*** Alster Research Buy: EUR 32.00 Erste Group Buy: EUR 26.50 Ennoconn - 27.5% Hauck & Aufhäuser Buy: EUR 30.00 Naneva B.V (PPF Holdings B.V.) - 5.3% Jefferies Buy: EUR 29.00 Kontron Management* - 4.88% Ke
Slide 21: Kontron Group Balance Sheet
Kontron Group Balance Sheet Equity and liquidity very strong in m EUR 9/30/2023 12/31/2022 in m EUR 9/30/2023 12/31/2022 NON-CURRENT ASSETS 447.5 412.1 EQUITY 617.6 635.7 Fixed Assets 415.9 379.0 accumulated results 439.7 449.6 as of Property, plant and equipment 104.0 95.5 as of Treasury shares -9.
Slide 22: Update on ESG
Update on ESG Achievements Outlook & Targets › MSCI: BBB (stable since 2021) › Increasing interest of sustainable investors to be met › EcoVadis: rated above industry average › Customers and Investors – CO2 disclosure requests more often › Sustainalytics: 20.2 (medium* risk) Making our data easily a