Kontron Ag · XETR:KTN
Kontron — Q3 2023 Earnings Presentation
17 slides from Kontron's earnings presentation, Nov 3, 2023
Slide 1: Earnings Call Q3 2023
Explore the Kontron Group We are a fast-moving multinational technology leader. Earnings Call Q3 2023 November 3rd, 2023
Slide 2: Kontron: Q3 Results & Company Highlights
Kontron: Q3 Results & Company Highlights Results Highlights Company Highlights › Strong improvement in › Net income guidance raised profitability to EUR >72m (before: EUR >66m) Q3/23 vs Q3/22 EBITDA +74%; net income* +250% › 3 M&A transactions in progress Hartmann + Altimate + Bsquare to › Solid rev
Slide 3: KPIs Q3 2023
KPIs Q3 2023 Revenue EBITDA Operating Net Income after NCI* (in EUR m) (in EUR m) (in EUR m) + 14.4 % + 74.4% 8 Cent EPS + 275% 30 Cent 34.9 18.9 300.0 262.4 20.0 5.4 Q3 2022 | Q3 2023 Q3 2022 | Q3 2023 Q3 2022 | Q3 2023 * 2022 adj. for DCO/sold IT Gross Margin Order Entry vs. Revenues Operating Cas
Slide 4: KPIs 1-9M 2023
KPIs 1-9M 2023 Revenue EBITDA Operating Net Income after NCI* (in EUR m) (in EUR m) (in EUR m) + 14.0% + 39.9% 38 Cent EPS + 118% 83 Cent 860.9 95.9 53.0 755.0 68.5 23.9 9M 2022 | 9M 2023 9M 2022 | 9M 2023 9M 2022 | 9M 2023 * 2022 adj for DCO/sold IT Gross Margin Order Entry vs. Revenues Operating C
Slide 5: 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 6: Additional disclosures Q3
Additional disclosures Q3 Liquidity amounts to approx. EUR 501 m Cash generation (op. CF) 34* › EUR 292m cash on hand by September 2023 100* › EUR 59m current receivables from Vinci 65 59 *opCF adjusted for › EUR 150m non-utilized lines -15 reduced factoring: (EUR +53m YTD 23) EUR 320m potential cas
Slide 7: Europe: Biggest segment
Europe: Biggest segment 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 burdened by trans
Slide 8: Global: Back to normal profitability
Global: Back to normal profitability 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% 13.3 › Business
Slide 9: Software & Solutions: Fast growing
Software & Solutions: Fast growing 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 (susietec®) 319.4
Slide 10: Macro trends driving IoT business in the mid-term
Macro trends driving IoT business in the mid-term • Lower investment & lifecycle costs Smart • Nearshoring/factories coming back • Intelligent modules offer security 5G • Robots increase automation budget • Shift from GSM-R/4G/Wi-Fi to 5G Factories • Connected IoT production machines • 5G private ne
Slide 11: Strongest brainpower in the industry
Strongest brainpower in the industry susietec® IoT software framework Excellent pool of engineers › Extending susietec® portfolio by Bsquare SquareOne supported by lean organization › Release of KontronOS (highest security standard) › EUR 100m pure software revenues Mission-critical control systems
Slide 12: M&A strategy
M&A strategy Replace sold IT segment by strategic IoT acquisitions M&A is a core competence of Kontron M&A activities (in EUR m) › Replace EUR 387m of sold IT business with IoT acquisitions signed negotiations › Target: High synergies with Kontron → 12% EBITDA within 2 years › Complementary IoT tech
Slide 13: The New Kontron
The New Kontron Backlog and Design wins (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 0.80 Railway SK 40m I
Slide 14: The New Kontron
The New Kontron Net profit guidance increased to EUR >72m (before: EUR >66m) New Kontron w/o divested New Guidance 2023 & Outlook 2025 IT Services 150 1,500 2023E 2023E 1,200 (in EUR million) 2025E* old new 100 900 Revenue 1,200m 1,200m 2,000m 600 50 300 EBITDA margin 11% >11% 13% 0 0 (in %) 2014 20
Slide 15: Summary
Summary Achievements Q3-23 Targets › Strong order intake of EUR 356m (book-bill 1.19x) › FY2023 Guidance increased: › Significantly improved net income of EUR 18.9m › Net income EUR >72m (before: EUR >66m) Q3-23) vs. EUR 5.4m (Q3-22) › Revenue EUR 1,200m › Three M&A transactions signed › EUR 2,000m
Slide 16: Q&A Session – Q3 2023 Earnings Call
Explore the Kontron Group We are a fast-moving multinational technology leader. Q&A Session – Q3 2023 Earnings Call November 3rd, 2023
Slide 17: 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