TKH Group N.V. Cert · EURONEXT:TWEKA
TKH Group N.V. Cert — TKH Group — Investor Day (November 2021)
40 slides from TKH Group N.V. Cert's investor day presentation, Nov 17, 2021
Slide 1: TKH Group NV Investor presentation
TKH Group NV Investor presentation 17 November 2021 1 | TKH CAPITAL MARKETS DAY | 2021
Slide 2: Important Information – Disclaimer
IMPORTANT INFORMATION – DISCLAIMER Cautionary note regarding forward looking statements Statements included in this presentation release that The forward-looking statements are based upon our are not historical facts (including any statements current expectations, plans, estimates, assumptions conce
Slide 3: Strategy & Targets update
Strategy & Targets update 3 | TKH CAPITAL MARKETS DAY | 2021
Slide 4: Key messages
Key messages ‘Simplify & Accelerate’ program from 2019 led to strong focus on activities with higher ROS and higher organic growth, bringing ROS target of >15% in sight Strong post-COVID recovery during 2021 shows strong market position and successful strategy of the TKH Group Introducing a new simp
Slide 5: Update current situation
UPDATE CURRENT SITUATION 5 | TKH CAPITAL MARKETS DAY | 2021
Slide 6: Q3 2021 update & outlook
Q3 2021 update & outlook Quarterly update and outlook indicate strong post-COVID recovery Q3 2021 Contribution from all Solutions to strong turnover growth of 27.7% compared to Q3 2020 – Organic turnover growth +26.4% - Strong recovery Tire Building (Industrial Solutions) EBITA before one-off income
Slide 7: Realized actions 'Simplify & Accelerate' program 2019
Realized actions ‘Simplify & Accelerate’ program 2019 The program has contributed to a strong focus on activities with higher ROS and higher organic growth – which brings the ROS target of >15% in sight AREAS BANDWIDTH BANDWIDTH REALIZED ACTIONS EXPECTED TURNOVER ROS IMPROVEMENT IMPACT ON TARGET >15
Slide 8: Realized value creation and ready for next phase
Realized value creation and ready for next phase TKH has realized substantial value creation in the past decades and is ready for a new phase of value creation after the ‘Simplify & Accelerate’ program in million € in % 2.500 Introduction of 50% new segments and targets (2021) 2.000 40% 1.500 1.000
Slide 9: Introducing a new simplified segmentation for increased transparency
INTRODUCING A NEW SIMPLIFIED SEGMENTATION FOR INCREASED TRANSPARENCY ON VALUE CREATION 9 | TKH CAPITAL MARKETS DAY | 2021
Slide 10: Strategic cornerstones
Strategic cornerstones Strategic cornerstones: a strong foundation for value creation Our Identity Our Mission Our Strategic Vision Our Values Who we are What we do What drives us How we do it TKH is an innovative & We create superior Above average value creation, by In a sustainable and leading Tec
Slide 11: Introduction to new segmentation
Introduction to new segmentation The new segmentation better matches our long-term strategy and is the foundation of our new program: ‘Accelerate 2025’ Strategy alignment ‘Accelerate 2025’ program Continued transformation towards a leading Increased focus on Smart Technologies and technology company
Slide 12: Current Segmentation
Current Segmentation Business Solution segments reporting on turnover, EBITA, EBIT and ROS Telecom Building Industrial Care Fibre Optics Infrastructure Vertical Growth Markets Machine Vision Reporting on turnover targets Marine & Offshore Parking Tire Building Operating Companies 12 | TKH CAPITAL MA
Slide 13: Technology segments
Strategic model Smart Technologies: the basis for our new segmentation Positioned as technology leader Group Strategy Long-term megatrends as key drivers for group strategy High level of entrepreneurship Sustainability Technology segments Smart Smart Smart Vision systems Manufacturing systems Connec
Slide 14: We are an innovative and leading technology company
We are an innovative and leading technology company The innovative and disruptive Smart Technologies of TKH deliver value More than 15% Creation of turnover realized advanced by new technology innovations systems TKH is an 30% of our Continuous innovative technology acceleration & Technology proposi
Slide 15: Well positioned to benefit from relevant megatrends
Well positioned to benefit from relevant megatrends The relevant megatrends act as important growth drivers and shape the future of our strategy and Smart Technologies AUTOMATION & DIGITALIZATION Industry 4.0 – ‘Hands-off, eyes-off’ manufacturing – lack of human resources Technology systems tend to
Slide 16: High level of entrepreneurship and winning culture
High level of entrepreneurship and winning culture Our companies are strong in observing new opportunities and driven to strive for an excellent performance Governance model Operating model Entrepreneurial culture Plan and rewards Decentralized operating model Drive to win Strategy based on innovati
Slide 17: Smart Technologies is our core business
Smart Technologies is our core business The new segmentation is focused on our three Smart Technologies, whereas SMART is achieved with integrated and intelligent software propositions Smart Technology segments TKH SMART TKH SMART TKH SMART VISION SYSTEMS MANUFACTURING SYSTEMS CONNECTIVITY SYSTEMS W
Slide 18: Value creation fundaments
Value creation fundaments Guiding principles for value creation Focus on continuously increasing the added value due to smart technology focus and software position Well positioned in international growth markets, related to relevant megatrends Disruptive and advanced proprietary technologies that c
Slide 19: Prioritizing ESG in our strategy and actions
PRIORITIZING ESG IN OUR STRATEGY AND ACTIONS, DRIVEN TO IMPROVE OUR IMPACT ON SUSTAINABILITY 19 | TKH CAPITAL MARKETS DAY | 2021
Slide 20: Our ESG strategy
Our ESG strategy Increased focus on ESG within our strategy & targets and on our sustainable portfolio to contribute to global ESG goals Environment We act on climate change and contribute to long-term global environmental goals by focusing on our own operations and global footprint and leverage the
Slide 21: Unique sustainable portfolio for our customers
Unique sustainable portfolio for our customers Improve sustainability by providing customers with a unique sustainable portfolio and differentiate with a sustainability focus in our positioning Sustainable portfolio examples TKH SMART TKH SMART TKH SMART VISION SYSTEMS MANUFACTURING SYSTEMS CONNECTI
Slide 22: Key non-financial targets
Key non-financial targets Targets mid-term (2025) & long-term (2030) Selection of defined and ongoing actions Environment Strengthen governance by expanding sustainability functions on group level and 100% carbon neutrality own operations by 2030 throughout the organization (scope 1 & 2) Increase sh
Slide 23: Launching 'Accelerate 2025' with new strategic priorities and targets
READY FOR NEXT PHASE OF VALUE CREATION: LAUNCHING ‘ACCELERATE 2025’ WITH NEW STRATEGIC PRIORITIES AND TARGETS 23 | TKH CAPITAL MARKETS DAY | 2021
Slide 24: Strategic priorities 'Accelerate 2025'
Strategic priorities ‘Accelerate 2025’ Strategic priorities that support the realization of new targets Accelerate Increase our market share by unlocking the full potential of our innovations and disruptive organic growth technologies by taking advantage of the market growth driven by relevant megat
Slide 25: Financial group targets 'Accelerate 2025'
Financial group targets ‘Accelerate 2025’ Financial group targets include a new turnover target > 2 billion as well as a higher ROS target >17% Current mid-term Updated mid-term Commentary targets targets 2025* n/a > 2 billion in Taking into account divestments and acquisitions. turnover >15% ROS >
Slide 26: Roadmap to new ROS target 'Accelerate 2025'
Roadmap to new ROS target ‘Accelerate 2025’ AREAS BANDWIDTH BANDWIDTH EXPECTED TURNOVER ROS IMPROVEMENT TARGET >17% 1) COMMENTARY ORGANIC GROWTH/ Scale effect -due to organic growth- > € 300 million > 2.5% on opex and cost of good sold, COST EFFICIENCY productivity & yield improvement programs Accel
Slide 27: Segment Reporting
Segment Reporting 27 | TKH CAPITAL MARKETS DAY | 2021
Slide 28: Growth scenarios: Solutions to Technology Segments
Growth scenarios: Solutions to Technology Segments No future external targets will be provided for the three Technology Segments as we further simplify. TKH targets organic growth on group level Turnover growth scenarios per Vertical Converted growth scenarios Market into technology segments Vertica
Slide 29: TKH Smart Vision Systems
TKH SMART VISION SYSTEMS We create state-of-the-art Vision systems Turnover and ROS development Portfolio examples in million € 440 18% Forecast 420 17% 400 16% 3D 2D 2D Vision & 380 15% Machine Vision Machine Vision Communication 360 14% 340 13% 320 12% 300 11% 2017 2018 2019 2020 2021 Turnover Ret
Slide 30: TKH Smart Vision Systems
TKH SMART VISION SYSTEMS Main turnover contributor Market drivers High demand for automation due to movement towards Industry 4.0 - Vision technology (86%) Hands off – Eyes off manufacturing Continued increased demand for more productivity and improved quality Lack of human resources and rising labo
Slide 31: TKH Smart Manufacturing Systems
TKH SMART MANUFACTURING SYSTEMS We create superior Manufacturing systems Turnover and ROS development Portfolio examples in million € 460 18% 440 17% Forecast 420 16% 400 15% Tire Building Care Industrial systems systems Automation 380 14% systems 360 13% 340 12% 320 11% 2017 2018 2019 2020 2021 Tur
Slide 32: TKH Smart Manufacturing Systems
TKH SMART MANUFACTURING SYSTEMS Main turnover contributor Market drivers Trend towards more local manufacturing to reduce inventories ask Tire Building technology (69%) for integrated tire manufacturing systems to address in a super- efficient way small production batch sizes Scarcity in human resou
Slide 33: TKH Smart Connectivity Systems
TKH SMART CONNECTIVITY SYSTEMS We create advanced Connectivity systems Turnover and ROS development Portfolio examples in million € 700 13% Forecast 650 12% 600 11% Subsea Patch robot Fibre Optics 550 10% connectivity connectivity 500 9% 450 8% 400 7% 2017 2018 2019 2020 2021 Turnover Return on Sale
Slide 34: TKH Smart Connectivity Systems
TKH SMART CONNECTIVITY SYSTEMS Main turnover contributors Market drivers Energy Energy (33%) Digitalization (38%) Energy transition will require a boost in power generation from renewable sources Public and private ESG ambitions, budgets, and targets drive investments The scarcity of natural resourc
Slide 35: Geographical split per technology segment
Geographical split per technology segment 1) Smart Vision systems Smart Manufacturing systems Smart Connectivity systems 6% 10% 0% 2% 1% 16% 11% 6% 37% 18% 39% 34% 27% 39% 54% 1) Based on H1 2021. Netherlands Europe Asia North America Other 35 | TKH CAPITAL MARKETS DAY | 2021
Slide 36: P&L split based on Smart Technology segments
P&L split based on Smart Technology segments Actual 2020 Actual H1 2021 (amounts in million €) Smart Smart Smart Smart Smart Manu- Connec- Smart Manu- Connec- Vision facturing tivity Total Vision facturing tivity Total systems systems systems Other 2020 systems systems systems Other H1 2021 Turnover
Slide 37: New segment reporting
New segment reporting Reporting is in accordance with IFRS and will contain the following information: KPI Group Segment KPI Group Segment Turnover ✓ ✓ Non-current tangible investments ✓ Added value ✓ ✓ Non-current intangible investments ✓ Operating expenses ✓ Right-of-use investments ✓ EBITDA ✓ ✓ A
Slide 38: Capital allocation
Capital allocation Cash generated will be reinvested in businesses with above average growth potential and/or distributed to shareholders Investments Dividend and share buy-back in million € TKH aims for an attractive return for its 225 shareholders, which is also reflected in an 200 appropriate div
Slide 39: Key messages
Key messages ‘Simplify & Accelerate’ program from 2019 led to strong focus on activities with higher ROS and higher organic growth, bringing ROS target of >15% in sight Strong post-COVID recovery during 2021 shows strong market position and successful strategy of the TKH Group Introducing a new simp
Slide 40: | TKH CAPITAL MARKETS DAY | 2021
40 | TKH CAPITAL MARKETS DAY | 2021