Kontron Ag · XETR:KTN
Kontron — Investor Presentation (August 2023)
21 slides from Kontron's investor presentation, August 2023
Slide 1: Explore the Kontron Group – Investor Presentation
Explore the Kontron Group We are a fast-moving multinational technology leader. Investor Presentation August 2023
Slide 2: Who we are
Who we are Pure-Play Leader of Smart Industrial IoT Solutions › Focused on the large, diverse and growing 4,547 1.2bn Industrial IoT market (IIoT) Employees (6/2023) 2023E Revenue (EUR)* › Fully integrated technology platform Integrated (SW+HW) solutions for smart factories, >66m >10% transportation
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 Traffic 31% growth 21% adoption machines connected of 5G across mobile internet to the Internet
Slide 4: The New Kontron divisions in segments
The New Kontron 7 divisions in 3 segments Europe Global Software & Solutions Industrial Telecom OT Services North America Asia Software Transport Industrial, Adding 5G IT converted to Sales channel for susietec® & Data for high- Sales channel for Medical and connectivity to Service contracts Europe
Slide 5: Kontron: H1 Results & Company Highlights Q2-23
Kontron: H1 Results & Company Highlights Results Highlights Company Highlights › Q2 Gross margin rose to 40.6% › Record dividend of EUR 1 per (Q2 2022: 37.8%) share paid: Based on strong FY 2022 results and sale of IT service › EUR 326m of cash +EUR 59m payable by Vinci › 2 M&A transactions signed T
Slide 6: KPIs 6M 2023
KPIs 6M 2023 Gross margin Q2 exceeded 40% Revenue EBITDA Operating Net Income after NCI* (in EUR m) (in EUR m) (in EUR m) + 13.9% + 25.7% 30 Cent EPS 79.6% 54 Cent 560.9 60.9 492.6 34.0 48.5 19.0 6M 2022 | 6M 2023 6M 2022 | 6M 2023 6M 2022 | 6M 2023 * 2022 adj for DCO/sold IT Gross Margin Order Entr
Slide 7: Kontron Group Balance Sheet
Kontron Group Balance Sheet Equity and liquidity very strong in m EUR 6/30/2023 12/31/2022 in m EUR 6/30/2023 12/31/2022 NON-CURRENT ASSETS 420.7 412.1 EQUITY 597.8 635.7 Fixed Assets 388.4 379.0 accumulated results 420.7 449.6 as of Property, plant and equipment 101.3 95.5 as of Treasury shares -9.
Slide 8: Europe: Biggest segment
Europe: Biggest segment Revenue & EBITDA ** EBITDA Margin*** Industrial Order Entry* › Shows strong growth driven by smart factories Book-to-bill: 1.00 Communications › Growth potential/many projects with MPN 5G for IOT 364.0 364.2 34.3 34.7 10.4% Operational Technology services 329.1 9.5% › OT serv
Slide 9: Global: Ongoing recovery
Global: Ongoing recovery Revenue & EBITDA ** EBITDA Margin*** North America Order Entry* › Strong growth, avionics recovery Book-to-bill: 1.09 › Change in strategy shows in strong numbers Asia 109.0 8.9 8.9% › Steady growth 100.0 Segment trend 86.1 › Acts as a sales channel to sell European technolo
Slide 10: Software & Solutions: Fast growing
Software & Solutions: Fast growing Revenue & EBITDA ** EBITDA Margin*** Transportation (high-speed trains) Order Entry* › High-speed (green) trains are driven by political support Book-to-bill: 2.35 › 50% market share in Europe for GSM-R, expand to 227.6 China 17.4 17.9% Software (susietec®) 14.6% ›
Slide 11: Margin improvement strategy (MIS): Focus on Software + Solutions
Margin improvement strategy (MIS): Focus on “Software + Solutions” segment Revenue share Gross Margin share Gross Margin (in %) Focus on “Software + Solutions” (relative) (relative) › By 2025 biggest segment in Kontron 46% <20% › By 2027 more than 50% of total revenues <40% 40% › More than 50% in re
Slide 12: Our competition
Our competition Our distinctive competitive advantages Selected competitors in Revenue Region Industrial IoT (in USD m) › Unmatched R&D scale Curtiss Wright* 2,600 North America › 3,200 FTEs, annual budget of EUR 170m Advantech 2,200 Asia Beckhoff 1,600 Europe › Cost efficient solutions › (EUR 45k p
Slide 13: M&A strategy
M&A strategy Replace sold IT segment by strategic IoT acquisitions M&A is a core competence of Kontron M&A revenues H2/2022 – H2/2024 (in EUR m) › Replace EUR 387m sold IT business by IoT acquisitions › Target: high synergies with Kontron = >12% EBITDA within 2 years signed close to negotiations sig
Slide 14: The New Kontron: Backlog and Design wins
The New Kontron Backlog and Design wins (in EUR bn) Backlog Design wins Top Design Wins in 6M 2023 Country Volume EUR 3.41 3.41 Railway FR 150m 2.97 Medical DE 60m 2.35 Telecommunication AT 50m Medical DE 50m 1.60 Defense US 42m 1.46 Railway SK 40m 1.16 0.80 Industrial US 35m Defense US 34m 2020 202
Slide 15: Confident in guidance 2023 – better operational performance
The New Kontron Confident in guidance 2023 – better operational performance New Kontron w/o divested Guidance 2023 & Outlook 2025 IT Services 150 1,500 1,200 (in EUR million) 2023E 2025E 100 900 Revenue 1,200m 2,000m* 600 50 300 EBITDA margin 11% 13% (in %) 0 0 2014 2015 2016 2017 2018 2019 2020 202
Slide 16: 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 3,200 engineers and digitalization, AI and sustainability via IoT products annual investment of approx. 14% of revenues › Expand high-margin high-grow
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
Slide 18: Appendix
Explore the Kontron Group We are a fast-moving multinational technology leader. APPENDIX
Slide 19: The Kontron Share
The Kontron Share SDAX® & TecDAX® member Shareholder Structure* Coverage Alster Research Buy: EUR 32.00 Erste Group Buy: EUR 24.50 Ennoconn - 27.5% Kontron Management - 6.8% Hauck & Aufhäuser Buy: EUR 30.00 Naneva B.V (PPF Holdings B.V.) - 5.3% Jefferies Buy: EUR 28.00 Amiral Gestion - 3.6% Kepler C
Slide 20: Update on ESG
Update on ESG Achievements Outlook & Targets › MSCI: BBB (stable since 2021) › Increasing interest of sustainable investors to be met › EcoVadis: 44 (industry average: 44) › Customers and Investors – CO2 disclosure requests more often › Sustainalytics: 20.2 (medium* risk) Making our data easily acce
Slide 21: Acquisitions Telit Cinterion & Comlab AG
Acquisitions Telit Cinterion & Comlab AG Telit Cinterion (DE) Comlab AG (CH) › Purchase of Telit’s 5G automotive module unit › Data communication for railways › Integrated into Kontron Europe GmbH › Integrated into Kontron Transportation › Reported in the “Europe” segment › Reported in the “Software