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TKH Group N.V.
Earnings Release • Mar 4, 2025
3889_iss_2025-03-04_3094d6a4-98db-459f-8f46-03165c464b3f.pdf
Earnings Release
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Full year 2024 and Q4 2024 results
TKH delivers strong Q4
Highlights fourth quarter 2024
- Turnover increased 4.7% organically to €452.2 million, with growth in all segments; strong performance in Smart Vision and Smart Manufacturing systems
- Added value increased to 52.4%
- EBITA excluding one-off income and expenses increased 5.1% organically to €66.0 million
- ROS at 14.6%
Highlights FY 2024
- Turnover decreased by 1.2% organically to €1,712.7 million
- Added value at 51.9%, underlining the market differentiation of our technologies
- EBITA excluding one-off income and expenses decreased by 7.5% organically to €203.9 million, in line with the outlook of €200-€210 million
- ROS at 11.9%
- Adjusted net profit of €98.9 million
- Order intake of €1,911.4 million, resulting in a record order book of €1,135.0 million
- Good progress on ESG targets, improved ratings, SDGs at 71.6% of turnover
- Innovation at 17.6% of turnover
- Dividend of €1.50 proposed for 2024
- Serial production of inter-array cables in Eemshaven expected to commence shortly
- For 2025, we anticipate organic growth in turnover and EBITA excluding one-off income and expenses, with a weak first quarter
- Strategic update leading to next phase of focus and optimization; TKH plans to host a CMD on September 25, 2025
| Key figures (in € million unless otherwise stated) | FY | FY | Organic | |
|---|---|---|---|---|
| 2024 | 2023 | Δ in % | Δ in % | |
| Turnover | 1,712.7 | 1,847.5 | -7.3% | -1.2% |
| Added value | 888.5 | 919.7 | -3.4% | |
| EBITA excluding one-off income and expenses 1) | 203.9 | 237.0 | -14.0% | -7.5% |
| Adjusted net profit 2) | 98.9 | 130.5 | -24.2% | |
| Net profit 3) | 99.5 | 165.8 | -40.0% | |
| EPS (in €) | 2.50 | 4.07 | -38.6% | |
| ROS | 11.9% | 12.8% | ||
| ROCE | 15.2% | 19.8% |
1) One-off net expenses in 2024 amounted to €4.0 million (2023: one-off net expenses of €2.0 million), of which €3.6 million net expenses in H2 2024 (H2 2023: one-off expenses of €3.0 million).
2) Adjusted net profit is the net profit before amortization of intangible non-current assets related to acquisitions and one-off income and expenses attributable to shareholders. Amortization of intangible non-current assets related to acquisitions (after taxes) in 2024 of €13.1 million (2023: €12.3 million), of which €6.5 million in H2 2024 (H2 2023: €6.5 million).
3) Includes one-off profits from divestments of €24.2 million in 2024 (2023: €54.8), of which €11.5 million in H2 2024 (€18.6 million in H2 2023). For further details, see the 'Overview of alternative performance indicators' included in the appendix to this press release.
Alexander van der Lof, CEO of technology company TKH: "With Q4 showing growth in all segments, we realized a strong end to the year. Smart Vision systems reported record results in Q4 on the back of the large orders secured earlier in the year, and the robust order book positions us for further growth. Smart Manufacturing and Smart Connectivity systems also contributed to the growth, and ROS for the group in the fourth quarter was a strong 14.6%.
During the year under review, Smart Connectivity systems showed a weak performance. The strong market headwinds in Digitalization led to a sharp decline in volumes, which we addressed by relocating all fibre optic cable production to Poland to reduce costs. In Electrification, the effects of destocking of onshore cables by the Dutch utility companies continued throughout 2024. Strong progress was made in positioning for growth in Europe. The postponement of the ramp-up of the new inter-array cable factory in Eemshaven resulted in low turnover for offshore inter-array cables and additional start-up and ramp-up costs. Good progress has been made in the past months to remove the bottlenecks enabling us to start serial production shortly.
In 2024, we concluded our €200 million investment program. We further optimized our portfolio, divesting two large non-core entities in our Smart Manufacturing segment, with a combined turnover of €56 million in 2023. We also acquired three smaller companies with state-of-the-art technologies, two of which in our automation-driven Smart Vision segment.
In 2025, we will see the full benefits of the €15 million cost-saving measures we implemented. Combined with expected growth in Smart Vision systems and strong growth in Smart Connectivity systems driven by the strong order book, we expect overall organic growth of both turnover and EBITA excluding one-off income and expenses in 2025.
As this is the last year of our Accelerate 2025 strategy, we have started to review our strategy going forward. We have achieved many of the milestones we defined for this period, but also due to geopolitical developments and resulting market headwinds, we have not realized our full potential within the timeframe. Building on our strong foundations, our strategy for the next phase will focus on Automation and Electrification as guiding global trends. Our leading positions and mature technologies on the back of our innovations and R&D roadmap, will allow us to gain further market share and expand our addressable market. In addition, a combination of cost optimizations, optimized integrations and commercial excellence programs will add to further margin expansion. As part of our strong focus on Automation and Electrification, we will implement a matching divestment program, using the proceeds to further build our core technologies, while returning any excess cash to shareholders. We plan to host a Capital Markets Day on September 25, 2025 to present our fully defined strategy and targets for the next phase."
ESG
TKH made further progress in 2024 on its key sustainability targets as set out in the Accelerate 2025 strategic program. Our net carbon market-based footprint for scopes 1 and 2 decreased by 70.3% in 2024 compared with the reference year 2019 (2023: 64.3%). This excludes acquired carbon offsets and was mainly driven by energy efficiency measures, a higher share of renewable energy and green certificates. In 2024, the percentage of female employees in executive and senior management roles increased to 21.6% from 19.2% in 2023. The percentage of turnover related to the Sustainable Development Goals (SDGs) was 71.6% (2023: 70.2%).
Nominations for reappointments to the Supervisory Board
At the close of the AGM 2025, to be held on 15 May 2025, the term of Mr. J.M. Kroon and Mrs. C.W. Gorter as member of the Supervisory Board will expire, in accordance with the applicable schedule of retirement. Under the regulations of the Supervisory Board and the articles of association of TKH,
both members may be re-appointed for a further period of two years and they have indicated that they are available for re-appointment. TKH will therefore nominate Mr. J.M. Kroon and Mrs. C.W. Gorter for re-appointment as members of the Supervisory Board for a term until the end of the AGM 2027.
Dividend proposal
The 2025 General Meeting of Shareholders will be asked to approve the payment of a 2024 cash dividend of €1.50 per (depositary receipt for a) share (2023: €1.70), amounting to a payout ratio of 60.5% of the net profit before amortization and one-off income and expenses attributable to shareholders (2023: 53.0%) and 60.0% of the net profit attributable to shareholders (2023: 41.7%). The dividend will be payable on May 23, 2025.
As of December 31, 2024, the total (depository receipt of) shares outstanding amounted to 42,198,429 of which 2,325,349 were treasury shares.
Strategy update: Focus and Optimization
With our Accelerate 2025 strategy we have created strong foundations with leading positions in markets such as tire building machines, machine vision for factory automation, integrated security systems and energy cable systems. We have expanded our production capacity in this area and have developed state-of-the-art technologies with distinctive USPs.
In the next strategic phase, we will focus on our activities which bring the best value creation potential, given our market leading positions and proprietary technologies on the back of the global trends
1) Focus on Automation and Electrification by leveraging our existing footprint and by deploying proprietary technologies
Within Automation, we will focus on production automation, inspection and security as core activities. In Electrification, we will build on our significantly expanded production capacity for offshore and onshore connectivity and capitalize on the substantial value creation opportunities. Our R&D competences, innovations, smart software, and AI will remain cornerstones to accelerate growth.
2) Further optimize our operations through integrations and divestments
Organizational optimization and integration will drive further cost efficiencies in our operations. We will continue to divest non-core business activities that are not related to Automation or Electrification. This includes our Digitalization activities within Smart Connectivity systems.
3) Capital allocation
The proceeds of the divestments will be used to further build on our core technologies in Automation and Electrification, while we aim to return excess cash to shareholders through dividends and/or share buybacks.
TKH plans to host a Capital Markets Day on September 25, 2025 to present an update on this strategy and the targets for the next phase.
Financial developments fourth quarter 2024
| Key figures (in € million unless otherwise stated) | Q4 2024 |
Q4 2023 |
Δ in % | Organic Δ in % |
|---|---|---|---|---|
| Turnover | 452.2 | 441.4 | 2.4% | 4.7% |
| EBITA excluding one-off income and expenses 1) | 66.0 | 62.9 | 4.9% | 5.1% |
| ROS | 14.6% | 14.3% |
1) One-off net expenses in Q4 2024 amounted to €3.5 million (Q4 2023: one-off net expenses of €2.8 million).
In the fourth quarter of 2024, turnover increased organically by 4.7% and EBITA excluding one-off income and expenses by 5.1% compared to Q4 2023. All segments contributed to the revenue growth, with Smart Vision systems' revenue up 8.5% organically, Smart Manufacturing systems' turnover increasing by 5.6% organically and Smart Connectivity systems up 1.0% organically. Smart Vision systems reported a record EBITA excluding one-off income and expenses, as both 2D and 3D Machine Vision and Security Vision benefitted, amongst others, from the delivery of larger orders secured earlier in the year. ROS reached 14.6% in the quarter.
Financial developments full year 2024
Turnover reached €1,712.7 million in 2024, a decrease of 7.3% (2023: €1,847.5 million), a large part of which was caused by divestments. Adjusted for acquisitions, divestments and currency effects, turnover decreased organically by 1.2%. Acquisitions accounted for +0.7% and divestments accounted for -6.8% of turnover. Of the three segments, Smart Manufacturing systems recorded turnover growth in 2024.
The geographical distribution of turnover shifted in favor of Asia and North America. The turnover share in the Netherlands declined slightly to 24% of total turnover (2023: 25%), while the share in Europe, excluding the Netherlands, declined to 35% (2023: 39%), partly caused by divestments. In Asia, the turnover share grew to 21% (2023: 19%), due to a larger share of tire building machines delivered to Asia, while turnover in North America grew to 15% (2023: 13%). The turnover share of the other geographical regions grew to 5% (2023: 4%).
The order intake in 2024 amounted to €1,911.4 million (2023: €1,834.8 million), resulting in an order book at year-end of €1,135.0 million (2023 €970.1 million). The order book at Smart Connectivity systems reached a record level of €493.6 million (2023: €214.8 million), driven by a number of large orders for inter-array cables. The order book at Smart Vision systems increased from €124.0 million at year-end 2023 to €139.9 million at year-end 2024. The order book at Smart Manufacturing systems decreased from €631.3 million at year-end 2023 to €501.5 at year-end 2024. The divestments of HE Systems and EKB Groep accounted for €40.0 million of the order decline in Smart Manufacturing systems.
The added value increased to 51.9% in 2024 (2023: 49.8%). All segments reported an increase in added value. Most notably Smart Connectivity systems' added value went from 41.8% in 2023 to 44.0% in 2024. The increase in added value was mainly attributable to the elimination of EU antidumping duties on fibre optic cables, a change in product mix, and the impact of acquisitions and divestments.
Operating expenses (excluding one-off income and expenses, amortization and impairments) increased by 0.3% compared to last year. Acquisitions and divestments had a net impact of -3.1%. Operating expenses were impacted by the start-up and ramp-up of capacity related to strategic investments, as well as by payroll increases. Currency effects had a limited impact.
As a result, EBITA excluding one-off income and expenses decreased organically by 7.5% to €203.9 million in 2024, from €237.0 million in 2023. ROS decreased to 11.9% (2023: 12.8%). Inflationary effects, destocking at customers and start-up costs of our new factories all had a dampening effect on ROS. The ROS at Smart Manufacturing systems increased markedly to 19.1% (2023: 15.8%), driven by high-capacity utilization, implemented efficiency improvements, and the catch-up effects from the delivery of previously stored machines in the course of 2024.
In 2024, one-off expenses on EBITA-level amounted to €4.0 million (2023: one-off expenses of €2.0 million) mainly due to the €15 million cost-saving measures implemented in H2 2024. These included reorganization costs in Smart Vision systems for the integration in 2D Vision, restructuring costs in Smart Connectivity systems due to the centralization of fibre optic cable production in Poland, and acquisition and divestment costs.
Amortization increased to €60.8 million (2023: €56.9 million) due to the higher amortization of capitalized R&D, as a result of increased investments in previous years and higher amortization of purchase price allocations due to acquisitions. Impairments amounted to €8.5 million (2023: €3.7 million) for mainly underutilized right-of-use and fibre optics network related assets.
Net financial expenses increased to €29.3 million (2023: €22.1 million) due to the combination of higher debt levels and higher interest rates. The results from associates and subsidiaries amounted to €24.5 million (2023: € 51.5 million) and includes the one-off profits from the divestments of HE System Electronic and EKB Groep of €24.2 million (2023: divestment of CCG and TKH France of €54.8 million).
The normalized effective tax rate was stable at 24.4% in 2024 compared to 24.6% in 2023. TKH benefitted from R&D tax facilities in several countries.
Net profit before amortization of intangible non-current assets related to acquisitions and one-off income and expenses attributable to shareholders decreased by 24.2% to €98.9 million (2023: €130.5 million). Net profit decreased to €99.5 million (2023: €165.8 million). Earnings per share before amortization, one-off income and expenses amounted to €2.48 (2023: €3.21). Ordinary earnings per share were €2.50 (2023: €4.07).
Net bank debt according to bank covenants increased by €26.8 million from year-end 2023 to €496.0 million at year-end 2024. The main items affecting the debt level include the net investments in property, plant, and equipment of €98.7 million (€49 million of which is related to the strategic investment program), acquisitions (net €38.6 million), investments in intangible assets (€61.7 million), and dividends paid (€67.9 million). Divestments amounted to €60.3 million in 2024, including the €24.2 million one-off profit. At year-end 2024, €18.2 million assets were held for sale (year-end 2023: €18.0 million), related to the intended divestment of the test and measurement system activities, Dewetron. Cash flow from operating activities amounted to €196.2 million (2022: €152.9 million), an improvement due to a decrease in working capital in 2024 compared to an increase a year earlier. Working capital stood at 17.9% of turnover (2023: 16.7%). The net debt/EBITDA ratio, calculated according to TKH's bank covenant, was 2.0, well within the financial ratio agreed with our banks. Solvency improved to 39.9% (2023: 39.3%).
At year-end 2024, TKH employed a total of 6,640 FTEs (2023: 6,899), 351 of which were temporary employees (2023: 434 FTEs).
Developments per technology segment
Smart Vision systems
| Key figures (in € million unless otherwise stated) | FY | FY | Organic | |
|---|---|---|---|---|
| 2024 | 2023 | Δ in % | Δ in % | |
| Turnover | 489.6 | 500.5 | -2.2% | -4.4% |
| Added value | 60.6% | 58.9% | ||
| EBITA excluding one-off income and expenses 1) | 77.7 | 85.9 | -9.5% | -12.8% |
| ROS | 15.9% | 17.2% | ||
| Order book | 139.9 | 124.0 | +12.8% | |
| ROCE | 13.3% | 15.6% |
1) One-off net expenses for Smart Vision systems amounted to €2.6 million in 2024 (2023: € 0.5 million) of which €2.6 million in Q4 2024 (Q4 2023: €0.5 million).
In 2024, turnover in Smart Vision systems decreased by 2.2% to €489.6 million. Adjusted for acquisitions and currency effects, turnover decreased organically by 4.4%. The order book increased by 12.8% to €139.9 million (2023: €124.0 million) resulting from a strong order intake in Q4 2024. The added value increased from 58.9% to 60.6%. Due to higher operating expenses combined with lower turnover growth, EBITA excluding one-off income and expenses decreased 12.8% organically to €77.7 million and ROS reached 15.9%.
Vision Technology (85% of Smart Vision systems' turnover) – In line with expectations, both Security Vision and Machine Vision posted a record Q4 2024 on the back of a strong order intake delivery and the delivery of some larger secured orders. In 2024, Security Vision's turnover declined slightly, mainly due to the comparison with a strong 2023. In Machine Vision, 3D Vision recorded a decline in turnover due to weak market circumstances in solar and battery business. The return of the wood market and the contribution from Liberty Robotics, which was acquired in the second half of 2024, were not sufficient to offset this impact. 2D Vision recorded growth during the year as it benefitted from implemented customer excellence programs, and expansion into new end markets such as defense. In both 2D and 3D Machine Vision, further innovations accelerated by AI were brought to the market. Machine Vision also saw its share of customized solutions increase. During the year, steps were taken to consolidate the organization of TKH's 2D brands and to strengthen the supply chain, which, together with the implementation of cost-saving measures, resulted in one-off expenses of €2.6 million. These steps will benefit the results of 2D Vision from 2025 onwards. With the return of the wood market, new markets and solutions with Liberty Robotics, and a successful penetration into India, we expect the results for 3D Vision to have bottomed out in 2024 and to start growing. The growth in the order book is largely due to a number of larger security and parking automation projects in Security Vision and to some extent in 2D Machine Vision.
Smart Manufacturing systems
| Key figures (in € million unless otherwise stated) | FY | FY | Organic | |
|---|---|---|---|---|
| 2024 | 2023 | Δ in % | Δ in % | |
| Turnover | 608.8 | 573.6 | +6.2% | +11.1% |
| Added value | 51.5% | 50.5% | ||
| EBITA excluding one-off income and expenses | 116.1 | 90.6 | +28.1% | +31.1% |
| ROS | 19.1% | 15.8% | ||
| Order book 1) | 501.5 | 631.3 | -20.6% | -15.2% |
| ROCE | 88.1% | 66.0% |
1) The order book as of 31 December 2023 includes the order book of the divested companies HE System Electronic and EKB Groep totaling €40.0 million.
Smart Manufacturing systems turnover grew strongly during the year, although growth slowed down in the second half of 2024, in line with expectations, partly explained by the strong H2 2023. Adjusted for currency effects and divestments, turnover in 2024 grew organically by 11.1%. During 2024, HE System Electronic (2023 turnover €20.7 million) and EKB Groep (2023 turnover €35.5 million) were divested. The order book at €501.5 million decreased by 20.6% (15.2% decrease organically) compared to its record level of € 631.3 million on December 31, 2023. The added value increased further to 51.5% (from 50.5% previously), due to a combination of product mix and price increases being passed on to customers. EBITA excluding one-off income and expenses was up 31.1% organically at €116.1 million, as the implemented efficiency improvements continued to pay off, in combination with the high-capacity utilization at Tire Building systems. As a result, the ROS expanded to 19.1% (2023: 15.8%), with ROS reaching 20.3% in Q4 2024.
Tire Building systems (83% of Smart Manufacturing systems' turnover) – Tire Building systems benefitted from a very strong year in 2024, driven by a record order book and the catch-up effect of deliveries, following the easing of earlier supply chain constraints. Together with the efficiency improvements implemented during the year, this led to a strong operational performance. The production facilities in Poland were further expanded in the first half of 2024. The order for a UNIXX system booked at the beginning of 2024 is scheduled for delivery and installation in the second half of 2025, with further strong market interest. The revolutionary UNIXX technology, implemented in newly released tire component production machines such as UNIXX Beltmaker and Revolute, as well as in tire building machines, continues to gain traction. During the year, AI-powered features were introduced, including Foreign Object Detection, which is based on our proprietary high-speed algorithm that analyzes images in real time with unprecedented accuracy, while minimizing the number of false positives. The lower order intake in 2024, both for passenger and truck tire machines was mainly related to a decline in demand at Tier 1 customers, whereas order intake from Tier 2 and 3 customers remained at similarly high levels compared to previous years. The drivers for tire building systems remain very strong, as the need for more flexibility in production, increased sustainability demands, and the need for higher levels of automation will fuel future demand for more advanced tire building production.
Other – During the year, the divestments of HE System Electronic and EKB Groep were closed and Dewetron was reclassified to "Held for sale." New orders were received for the Indivion, strengthening our position in the Nordics region.
Smart Connectivity systems
| Key figures (in € million unless otherwise stated) | FY | FY | Organic | |
|---|---|---|---|---|
| 2024 | 2023 | Δ in % | Δ in % | |
| Turnover | 631.9 | 800.5 | -21.1% | -9.2% |
| Added value | 44.0% | 41.8% | ||
| EBITA excluding one-off income and expenses 1) | 30.9 | 81.1 | -61.9% | -42.9% |
| ROS | 4.9% | 10.1% | ||
| Order book | 493.6 | 214.8 | 129.8% | |
| ROCE | 5.2% | 16.6% |
1) One-off net expenses for Smart Connectivity systems amounted to €0.5 million in 2024 (2023: one-off expenses of €0.6 million) of which €0.5 million in Q4 2024 (Q4 2023: next expenses of €2.2 million).
Turnover in Smart Connectivity systems decreased 21.1% to €631.9 million in 2024 (2023: €800.5 million). Adjusted for the divestment of the commodity connectivity activities in France in September 2023 and currency effects, turnover declined organically by 9.2%. The order book grew strongly to €493.6 million (2023: €214.8 million), with the 129.8% increase coming mainly from inter-array cable orders, including the €200 million turnkey inter-array cable project with Inch Cape, which includes the survey, engineering, manufacturing, testing, supply and installation of the inter-array cables. Added value as a percentage of turnover increased to 44.0% from 41.8% in 2023, mainly due to a shift in product mix, elimination of anti-dumping duties on fibre cables and the divestment. EBITA excluding one-off income and expenses decreased organically by 42.9% to €30.9 million, impacted by lower volumes, start-up and ramp up costs of the new Eemshaven factory, and low levels of utilization in inter-array and fibre optic cables. ROS decreased to 4.9%.
Electrification (48% of Smart Connectivity systems turnover) –TKH has invested significantly in additional capacity in offshore wind inter-array cables, and high and medium voltage onshore energy cables in anticipation of substantial market growth in the coming years. The €150 million strategic investment into Electrification is now completed, and the ramp-up of serial production at the new Eemshaven plant for inter-array offshore wind cables, which was initially postponed, is expected to commence shortly . In the past months, the issues in what is considered the most critical production processes have been solved. The remaining production stages are less complex and have already been successfully completed for shorter lengths. To meet the demand for inter-array cables, it was decided to continue the production of inter-array wind cables at the Lochem plant. The demand for onshore energy cables in the Netherlands remained weak due to destocking by utility companies. We made good progress in positioning our high- and medium-voltage cables outside the Netherlands in Europe. Our sales funnel for inter-array cables remains high with more than >10,000 km up until 2030. In anticipation of the planned growth and driven by the large order intake, we expanded our staff. The aforementioned limitations to our turnover growth in inter-array, high- and medium-voltage cables, combined with higher start-up and ramp-up costs impacted the EBITA excluding one-off income and expenses in 2024.
Digitalization (29% of Smart Connectivity systems turnover) – Digitalization continued to be impacted by a deteriorating market for fibre optic cables in Europe, due to low levels of investment in the rollout of European fibre networks, a strong destocking effect, as well as pricing pressure due to high inventory levels in the Chinese market. The elimination of EU anti-dumping duties could not compensate for the low utilization rate and ramp-up costs of our new factory in Poland. In 2024 we decided to close the fibre optic cable production in the Netherlands and consolidate production in Poland, which will reduce our operating expenses from Q2 2025 onwards.
Other (23% of Smart Connectivity systems turnover) – TKH's specialized and customized connectivity systems for the machine-building and robotics industries continued to be impacted by the weak German economy.
Outlook
TKH has made strong progress in its strategic positioning with the completion of the €200 million strategic investment program, which will start to pay off in 2025. This, combined with the strong order book, will position us well for 2025.
The first quarter of 2025 will be weak due to seasonality, the ramp-up of the Eemshaven plant, and continued weakness in the fibre optic cable market. For the full year, we expect turnover and EBITA excluding one-off income and expenses growth to return in Smart Vision systems, driven by the stronger order book, expected market share growth in new markets, and the implemented cost-saving measures. In Smart Manufacturing systems, turnover and EBITA excluding one-off income and expenses are expected to decrease organically due to the lower order intake in 2024 and the comparison with a very strong 2024, which benefitted from catch-up effects. In Smart Connectivity systems, we expect the new production capacity and the high order intake in 2024 to contribute to significant turnover and EBITA excluding one-off income and expenses growth in Smart Connectivity systems.
Barring unforeseen circumstances, on balance we anticipate organic growth in turnover and EBITA excluding one-off income and expenses in 2025.
TKH will provide a more specific outlook for the full year of 2025 at the presentation of its interim results in August 2025.
You can follow the presentation of the full-year results on March 4, 2025 at 10:00 CET via video webcast (www.tkhgroup.com).
Haaksbergen, March 4, 2025
For further information: Jacqueline Lenterman Investor Relations [email protected] Tel: +31(0)53 5732901
Calendar
| Market Update Q1 2025 |
|---|
| General Meeting of Shareholders |
| Ex-dividend date |
| Dividend record date |
| Payment of dividend |
| Publication Interim Results 2025 |
| Capital Markets Day |
| Market Update Q3 2025 |
About TKH
TKH Group N.V. (TKH) is a leading technology company. We specialize in the creation of innovative, client-centric technology systems that drive success in Automation, Digitalization, and Electrification. By integrating hardware, software, and customer-focused insight, our smart technologies provide unique answers to customers' challenges. In doing so, we work to make the world better by creating increasingly efficient and sustainable systems.
With close to 7,000 employees, TKH pursues sustainable growth in a culture of entrepreneurship, working closely with customers to create one-stop-shop, plug-and-play innovations combined with software for Smart Vision, Smart Manufacturing, and Smart Connectivity technology.
Listed on Euronext Amsterdam (TICKER: TWEKA), we operate globally and focus our growth across Europe, North America, and Asia.
For further information, please visit www.tkhgroup.com.
Consolidated profit and loss account
| in thousands of euros | 2024 | 2023 | ||
|---|---|---|---|---|
| Total turnover | 1,712,735 | 1,847,532 | ||
| Raw materials, consumables, trade products and | ||||
| subcontracted work | 824,229 | 928,220 | ||
| Personnel expenses | 477,618 | 478,467 | ||
| Other operating expenses | 158,965 | 156,968 | ||
| Depreciation and result on divestment of property, | ||||
| plant and equipment | 52,003 | 48,828 | ||
| Amortization | 60,808 | 56,860 | ||
| Impairments | 8,504 | 3,720 | ||
| Total operating expenses | 1,582,127 | 1,673,063 | ||
| Operating result | 130,608 | 174,469 | ||
| Financial income | 1,351 | 1,316 | ||
| Financial expenses | -30,669 | -23,440 | ||
| Exchange differences | -2,962 | -750 | ||
| Share in result of associates | 249 | -3,309 | ||
| Result on sale of associates and subsidiaries | 24,221 | 54,802 | ||
| Fair value changes of financial liability for earn-out and | ||||
| put options of shareholders of non-controlling interests | 733 | -146 | ||
| Result before tax | 123,531 | 202,942 | ||
| Tax on result | 24,000 | 37,180 | ||
| Net result | 99,531 | 165,762 | ||
| Attributable to: | ||||
| Shareholders of the company | 99,561 | 165,704 | ||
| Non-controlling interests | -30 | 58 | ||
| 99,531 | 165,762 | |||
| Earnings per share attributable to shareholders | ||||
| Ordinary earnings per share (in €) | 2.50 | 4.07 | ||
| Diluted earnings per share (in €) | 2.50 | 4.07 | ||
| Ordinary earnings per share before amortization (in €) | 2.83 | 4.38 | ||
| Ordinary earnings per share before amortization and | ||||
| one-off income and expenses (in €) | 2.48 | 3.21 |
Consolidated statement of comprehensive income
| in thousands of euros | 2024 | 2023 | ||
|---|---|---|---|---|
| Net result | 99,531 | 165,762 | ||
| Items that may be reclassified subsequently to profit or loss (net of tax) |
||||
| Currency translation differences | 12,587 | -6,350 | ||
| Currency translation differences in other associates | 19 | -532 | ||
| Effective part of changes in fair value of cash flow hedges (after | ||||
| tax) | -1,391 | 3,718 | ||
| 11,215 | -3,164 | |||
| Items that will not be reclassified subsequently to profit or loss (net of tax) |
||||
| Actuarial gains/(losses) | -234 | 151 | ||
| -234 | 151 | |||
| Other comprehensive income (net of tax) | 10,981 | -3,013 | ||
| Comprehensive income for the period (net of tax) | 110,512 | 162,749 | ||
| Attributable to: | ||||
| Shareholders of the company | 110,552 | 162,769 | ||
| Non-controlling interests | -40 | -20 | ||
| Total comprehensive income for the period (net of tax) | 110,512 | 162,749 |
Consolidated balance sheet
| in thousands of euros | 31-12-2024 | 31-12-2023 | ||
|---|---|---|---|---|
| Assets | ||||
| Non-current assets | ||||
| Intangible assets and goodwill | 611,082 | 565,696 | ||
| Property, plant and equipment | 486,166 | 436,019 | ||
| Right-of-use assets | 78,006 | 84,012 | ||
| Associates | 29,738 | 35,987 | ||
| Other receivables | 842 | 752 | ||
| Deferred tax assets | 16,949 | 15,824 | ||
| Total non-current assets | 1,222,783 | 1,138,290 | ||
| Current assets | ||||
| Inventories | 398,563 | 403,259 | ||
| Trade and other receivables | 250,044 | 243,622 | ||
| Contract assets | 165,861 | 217,123 | ||
| Contract costs | 10,325 | 8,014 | ||
| Current income tax | 12,939 | 2,603 | ||
| Cash and cash equivalents | 125,629 | 93,697 | ||
| Total current assets | 963,361 | 968,318 | ||
| Assets held for sale | 27,197 | 21,171 | ||
| Total assets | 2,213,341 | 2,127,779 | ||
| Equity and liabilities | ||||
| Group Equity | ||||
| Shareholders' equity | 882,979 | 835,565 | ||
| Non-controlling interests | 108 | 148 | ||
| Total group equity | 883,087 | 835,713 | ||
| Non-current liabilities | ||||
| Interest-bearing loans and borrowings | 620,085 | 572,368 | ||
| Deferred tax liabilities | 58,985 | 57,722 | ||
| Retirement benefit obligation | 3,070 | 3,679 | ||
| Other non-current financial liabilities | 3,825 | 1,033 | ||
| Provisions | 13,093 | 12,740 | ||
| Total non-current liabilities | 699,058 | 647,542 | ||
| Current liabilities | ||||
| Interest-bearing loans and borrowings | 90,270 | 75,864 | ||
| Trade payables and other payables | 327,684 | 357,245 | ||
| Contract liabilities | 176,645 | 176,130 | ||
| Current income tax liabilities | 5,815 | 11,290 | ||
| Other financial liabilities | 1,939 | 1,639 | ||
| Provisions | 19,824 | 19,209 | ||
| Total current liabilities | 622,177 | 641,377 | ||
| Liabilities directly associated with assets held for sale | 9,019 | 3,147 | ||
| Total equity and liabilities | 2,213,341 | 2,127,779 |
Consolidated statement of changes in group equity
| Total | Non | ||
|---|---|---|---|
| shareholders' | controlling | Total | |
| in thousands of euros | equity | interests | group equity |
| Balance on January 1, 2023 | 786,773 | 168 | 786,941 |
| Net result | 165,704 | 58 | 165,762 |
| Other comprehensive income | -2,935 | -78 | -3,013 |
| Total comprehensive income | 162,769 | -20 | 162,749 |
| Dividends | -67,696 | -67,696 | |
| Share and option schemes | 4,997 | 4,997 | |
| Purchased shares for share buy-back program | -50,004 | -50,004 | |
| Purchased shares for share and option schemes | -8,545 | -8,545 | |
| Sold shares for share and option schemes | 7,271 | 7,271 | |
| Balance on December 31, 2023 | 835,565 | 148 | 835,713 |
| Net result | 99,561 | -30 | 99,531 |
| Other comprehensive income | 10,991 | -10 | 10,981 |
| Total comprehensive income | 110,552 | -40 | 110,512 |
| Dividends | -67,884 | -67,884 | |
| Share and option schemes | 3,827 | 3,827 | |
| Purchased shares for share and option schemes | -2,108 | 0 | -2,108 |
| Sold shares for share and option schemes | 3,027 | 0 | 3,027 |
| Balance on December 31, 2024 | 882,979 | 108 | 883,087 |
Consolidated cash flow statement
| in thousands of euros | 2024 | 2023 |
|---|---|---|
| Cash flow from operating activities | ||
| Operating result | 130,608 | 174,469 |
| Depreciation, amortization, and impairment | 121,652 | 109,494 |
| Share and option schemes not resulting in a cash flow | 3,827 | 4,997 |
| Result on disposals | -337 | -85 |
| Changes in provisions | -14 | -124 |
| Changes in working capital | 13,910 | -71,338 |
| Cash flow from operations | 269,646 | 217,413 |
| Interest received | 1,351 | 1,317 |
| Interest paid | -29,490 | -21,792 |
| Income taxes paid | -45,296 | -44,063 |
| Net cash flow from operating activities (A) | 196,211 | 152,875 |
| Cash flow from investing activities | ||
| Investments in intangible assets | -61,696 | -53,128 |
| Purchases of property, plant and equipment | -100,714 | -177,761 |
| Disposals of property, plant and equipment | 1,992 | 705 |
| Dividends received from associates | 60 | |
| Repayments on loans | -90 | -139 |
| Acquisition of associates | -27,624 | |
| Acquisition of subsidiaries less cash and cash equivalents acquired | -38,640 | -42,913 |
| Divestment of associates and subsidiaries classified as held-for-sale less | ||
| transferred cash | 60,259 | 130,460 |
| Net cash flow from investing activities (B) | -138,829 | -170,400 |
| Cash flow from financing activities | ||
| Dividends paid | -67,884 | -67,696 |
| Settlement of financial liabilities regarding put options of non-controlling interests | ||
| and earn-out | -447 | -1,379 |
| Purchased shares for share buyback program | -50,004 | |
| Purchased shares for share and option schemes | -2,108 | -8,545 |
| Sold shares for share and option schemes | 3,027 | 7,271 |
| Payment of lease liabilities | -16,005 | -16,537 |
| Proceeds from long-term debts | 44,086 | 397,050 |
| Repayments on long-term debts | -335,000 | |
| (Repayments)/proceeds from other long-term debts Change in short-term borrowings |
-631 -22,992 |
-1,005 86,628 |
| Net cash flow from financing activities (C) | -62,954 | 10,783 |
| Net increase/(decrease) in cash and cash equivalents (A+B+C) | -5,572 | -6,742 |
| Exchange differences | 256 | -2,351 |
| Change in cash and cash equivalents | -5,316 | -9,093 |
| Cash and cash equivalents at January 1 | 69,294 | 78,387 |
| Cash and cash equivalents on December 31 | 63,978 | 69,294 |
Notes to the financial statements
Information by segment
| Smart | Smart | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Smart Vision | Manufacturing | Connectivity | Other and | |||||||
| systems | systems | systems | eliminations | Total | ||||||
| In thousands euros | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| First half year | ||||||||||
| Turnover | 232,606 | 250,211 | 315,888 | 263,268 | 328,508 | 451,849 | -9,787 | -17,719 | 867,215 | 947,609 |
| Added value | 140,137 | 149,173 | 160,613 | 130,423 | 148,188 | 185,583 | 119 | 29 | 449,057 | 465,208 |
| Added value in % | 60.2% | 59.6% | 50.8% | 49.5% | 45.1% | 41.1% | 51.8% | 49.1% | ||
| EBITDA | 38,721 | 53,020 | 61,135 | 37,049 | 32,641 | 63,992 | -10,812 | -9,134 | 121,685 | 144,927 |
| EBITA | 30,396 | 44,936 | 56,428 | 32,473 | 20,392 | 51,952 | -11,455 | -9,591 | 95,761 | 119,770 |
| ROS | 13.1% | 18.0% | 17.9% | 12.3% | 6.2% | 11.5% | 11.0% | 12.6% | ||
| One-off income and | ||||||||||
| expenses | 0 | 0 | 0 | 0 | 0 | 1,058 | -430 | 0 | -430 | 1,058 |
| Amortization | -22,125 | -19,848 | -5,552 | -5,396 | -2,817 | -1,671 | -6 | 0 | -30,500 | -26,915 |
| Impairments | -896 | -649 | 0 | 4 | 0 | 0 | 0 | 1 | -896 | -644 |
| Operating result | 7,375 | 24,439 | 50,876 | 27,081 | 17,575 | 51,339 | -11,892 | -9,590 | 63,934 | 93,269 |
| Second half year | ||||||||||
| Turnover | 256,991 | 250,315 | 292,955 | 310,295 | 303,392 | 348,691 | -7,818 | -9,378 | 845,520 | 899,923 |
| Added value | 156,607 | 145,609 | 152,739 | 159,424 | 129,974 | 148,949 | 129 | 122 | 439,449 | 454,104 |
| Added value in % | 60.9% | 58.2% | 52.1% | 51.4% | 42.8% | 42.7% | 52.0% | 50.5% | ||
| EBITDA | 55,549 | 49,762 | 64,280 | 63,169 | 23,162 | 38,538 | -8,757 | -10,535 | 134,234 | 140,934 |
| EBITA | 47,336 | 40,950 | 59,685 | 58,163 | 10,528 | 29,180 | -9,394 | -11,030 | 108,155 | 117,263 |
| ROS | 18.4% | 16.4% | 20.4% | 18.7% | 3.5% | 8.4% | 12.8% | 13.0% | ||
| One-off income and | ||||||||||
| expenses | -2,639 | -508 | 0 | 0 | -513 | -1,676 | -414 | -857 | -3,566 | -3,041 |
| Amortization | -20,826 | -22,814 | -6,041 | -5,582 | -3,434 | -1,543 | -7 | -6 | -30,308 | -29,945 |
| Impairments | -5,402 | -2,796 | -434 | -87 | -1,772 | -193 | 0 | 0 | -7,608 | -3,076 |
| Operating result | 18,469 | 14,832 | 53,210 | 52,494 | 4,809 | 25,768 | -9,814 | -11,894 | 66,674 | 81,200 |
| Full year | ||||||||||
| Turnover | 489,597 | 500,526 | 608,843 | 573,563 | 631,900 | 800,540 | -17,605 | -27,097 | 1,712,735 | 1,847,532 |
| Added value | 296,744 | 294,782 | 313,352 | 289,847 | 278,162 | 334,532 | 248 | 151 | 888,506 | 919,312 |
| Added value in % | 60.6% | 58.9% | 51.5% | 50.5% | 44.0% | 41.8% | 51.9% | 49.8% | ||
| EBITDA | 94,270 | 102,782 | 125,415 | 100,218 | 55,803 | 102,530 | -19,569 | -19,669 | 255,919 | 285,861 |
| EBITA | 77,732 | 85,886 | 116,113 | 90,636 | 30,920 | 81,132 | -20,849 | -20,621 | 203,916 | 237,033 |
| ROS | 15.9% | 17.2% | 19.1% | 15.8% | 4.9% | 10.1% | 11.9% | 12.8% | ||
| One-off income and | ||||||||||
| expenses | -2,639 | -508 | 0 | 0 | -513 | -618 | -844 | -857 | -3,996 | -1,983 |
| Amortization | -42,951 | -42,662 | -11,593 | -10,978 | -6,251 | -3,214 | -13 | -6 | -60,808 | -56,860 |
| Impairments | -6,298 | -3,445 | -434 | -83 | -1,772 | -193 | 0 | 1 | -8,504 | -3,720 |
| Operating result | 25,844 | 39,271 | 104,086 | 79,575 | 22,384 | 77,107 | -21,706 | -21,484 | 130,608 | 174,469 |
| Other information | ||||||||||
| Order book | 139,861 | 124,035 | 501,506 | 631,285 | 493,638 | 214,784 | 0 | 1 | 1,135,004 | 970,105 |
| ROCE | 13.3% | 15.6% | 88.1% | 66.0% | 5.2% | 16.6% | 15.2% | 19.8% | ||
EBITDA and EBITA in this table are excluding one-off income and expenses.
Order book
The following table shows the expected future revenue regarding contractual performance obligations that have not (or have only partially) been completed on the balance sheet date:
| In thousands euros | Smart Vision systems |
Smart Manufacturing systems |
Smart Connectivity systems |
Total | ||||
|---|---|---|---|---|---|---|---|---|
| Expected to be recognized as revenue |
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Within 1 year | 119,174 | 110,075 | 435,510 | 523,251 | 285,438 | 151,750 | 840,121 | 785,077 |
| Between 1-2 years | 16,686 | 11,415 | 45,375 | 96,974 | 146,900 | 58,497 | 208,961 | 166,885 |
| After 2 years | 4,001 | 2,545 | 20,621 | 11,061 | 61,300 | 4,538 | 85,922 | 18,143 |
| Total | 139,861 | 124,035 | 501,506 | 631,285 | 493,638 | 214,784 | 1,135,004 | 970,105 |
Annual report
The consolidated balance sheet, consolidated profit and loss account, consolidated statement of comprehensive income, consolidated statement of changes in group equity, and consolidated cash flow statement included in this press release are based on the 2024 Financial Statements, which have not yet been published, in accordance with statutory requirements. The financial figures have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and are prepared in accordance with the principles that are applied in the Financial Statements for the year ended December 31, 2024. Further disclosures and a description of the accounting principles as required under IFRS are not included in these financial figures. For a full understanding, this press release should be read in conjunction with the 2024 Financial Statements of TKH Group N.V. The Annual Report will be published no later than April 2, 2025. The Annual Report will be submitted to the General Meeting of Shareholders on May 15, 2025 for approval.
In accordance with Section 2:293 and 395 of the Dutch Civil Code, we report that our auditor, Ernst & Young Accountants B.V. has issued an unqualified auditor's report on the Financial Statements. For a proper understanding of the financial position of TKH Group N.V. and the results of its operations, and for a proper understanding of the scope of the audit by Ernst & Young Accountants B.V., this press release should be read in conjunction with the Financial Statements from which this press release has been derived, together with the auditor's report thereon issued by Ernst & Young Accountants B.V.
Disclaimer
Statements included in this press release that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are forward-looking statements. These statements are only predictions and are not guarantees. Actual events or the results of our operations could differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements are typically identified by the use of terms such as "may," "will", "should", "expect", "could", "intend", "plan", "anticipate", "estimate", "believe", "continue", "predict", "potential," or the negative of such terms and other comparable terminology.
The forward-looking statements are based upon our current expectations, plans, estimates, assumptions, and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements.
Appendix: Alternative performance measures
TKH uses alternative performance measures to measure and monitor its financial and operational performance. These measures are used in this Annual Report but are not defined in any law or in the International Financial Reporting Standards (IFRS). As far as non-IFRS financial measures are not used in the financial statements they have not been audited or reviewed by our external auditors.
The measures TKH deems to be relevant and reliable alternative performance measures are included in this chapter of the Annual Report. We consider these measures important supplemental measures of TKHs' performance and believe they are widely used in the industries in which TKH operates as a means of evaluating a company's performance. TKH believes that an understanding of its turnover development, profitability, financial strength and funding requirements is enhanced by reporting the following non-IFRS measures.
Added value
Total turnover less the cost of 'Raw materials, consumables, trade products and subcontracted work' for products sold and services delivered. Added value is presented as an absolute value, as well as a percentage from turnover.
Reference is made to the consolidated financial statements for a reconciliation and calculation. TKH deems this a relevant performance measure as it is an indicator of the pricing power TKH has in its specific markets and the ability to create added value for its customers.
EBITA and EBITDA and ROS (return on sales)
EBITA: Earnings before interest, taxes, impairments and amortization.
EBITDA: Earnings before interest, taxes, impairments, depreciation and amortization.
ROS: EBITA excluding one-off income and expenses divided by total turnover as a percentage.
Reference is made to the consolidated financial statements for a reconciliation and calculation. Measures as EBITA and EBITDA are broadly used by analysts, rating agencies and investors in their evaluations. One-off income and expenses are excluded when using a measure to improve insight in the underlying operational performance of our activities.
Capital employed and ROCE (return on capital employed)
Capital employed: Group equity plus Interest-bearing loans and borrowings current and non-current, less total lease liabilities and less cash and cash equivalents.
Return on capital employed: EBITA excluding the one-off income and expenses for the last 12 months divided by the average of capital employed at the beginning and at the end of the period. The measure provides useful information to management and investors to evaluate our ability to allocate capital to generate returns.
| in thousands of euros | 2024 | 2023 |
|---|---|---|
| Group equity | 883,087 | 835,713 |
| Add: Interest-bearing loans and borrowings, non-current | 620,085 | 572,368 |
| Add: Interest-bearing loans and borrowings, current | 90,270 | 75,864 |
| Less: Total lease liabilities | -87,725 | -87,154 |
| Less: Cash and cash equivalents | -125,629 | -93,697 |
| Capital employed current year | 1,380,088 | 1,303,094 |
| Capital employed previous year | 1,303,094 | 1,093,732 |
| Average capital employed | 1,341,591 | 1,198,413 |
| EBITA excluding the one-off income and expenses | 203,916 | 237,033 |
| ROCE | 15.2% | 19.8% |
Dividend payout ratio 'Adjusted net profit'
This ratio indicates the portion of net profit that is paid out to shareholders: (dividend / net profit before amortization and one-off income and expenses attributable to shareholders) times 100.
| 2024 | 2023 | |
|---|---|---|
| Proposed dividend per share | 1.50 | 1.70 |
| Ordinary earnings per share before amortization and one-off income and expenses (in €) |
2.48 | 3.21 |
| Payout ratio 'Adjusted net profit' | 60.5% | 53.0% |
Dividend payout ratio 'Net profit'
This ratio indicates the portion of net result that is paid out to shareholders ((dividend/net result) times 100).
TKH deems this a useful measure for investors to compare our dividend yields and financial performance with peers.
| 2024 | 2023 | |
|---|---|---|
| Proposed dividend per share | 1.50 | 1.70 |
| Ordinary earnings per share (in €) | 2.50 | 4.07 |
| Payout ratio Net profit | 60.0% | 41.7% |
Innovations %
Last 12 months turnover from new products launched in the previous two years, divided by last 12 months turnover. TKH positions itself as an innovative technology company. This measure provides useful information of the ability of TKH to bring innovations to the market and translate these in turnover.
| in thousands of euros (unless stated otherwise) | 2024 | 2023 |
|---|---|---|
| Turnover from innovations | 300,889 | 297,461 |
| Total Turnover | 1,712,735 | 1,847,532 |
| Turnover from innovations % | 16.1% |
Net interest bearing debt and Debt leverage ratio (net interesting bearing debt / EBITDA)
Net interest bearing debt: Bank loans reported under non-current liabilities, plus lease liabilities, plus borrowings reported under current liabilities less cash and cash equivalents.
Debt leverage ratio: Net interest bearing debt according to bank covenants, divided by EBITDA according to the bank covenants.
This measure provides insight in the financial solidity of TKH and is a measure of our ability to operate within the covenants set by our banks.
| in thousands of euros | 2024 | 2023 |
|---|---|---|
| Net interest bearing debt | 581,768 | 554,146 |
| Less: adjustment according to bank covenants | -85,741 | -84,952 |
| Net interest bearing debt according to bank covenants | 496,027 | 469,194 |
| EBITDA | 255,919 | 285,861 |
| adjustment according to bank covenants | -13,077 | -23,516 |
| EBITDA according to bank covenants | 242,842 | 262,345 |
| Debt leverage ratio | 2.0 | 1.8 |
The 'adjustments according to bank covenants' mainly relate to the exclusion of lease liabilities from the calculation of the net interest bearing debt and some adjustments in determining EBITDA. All based on specific arrangements as included in the credit facilities with our banks.
Net profit before amortization of intangible non-current assets related to acquisitions (after tax) and one-off income and expenses attributable to shareholders (summarized as: 'Adjusted net profit')
TKH deems this measure useful in comparing the performance to other companies in comparable industries.
| in thousands of euros (unless stated otherwise) | 2024 | 2023 |
|---|---|---|
| Net profit | 99,531 | 165,762 |
| Less: Non-controlling interests | 30 | -58 |
| Net profit attributable to the shareholders of the company | 99,561 | 165,704 |
| Amortization of intangible non-current assets from acquisitions | 17,684 | 16,522 |
| Taxes on amortization | -4,565 | -4,244 |
| Net profit before amortization from continuing operations attributable to the | ||
| shareholders of the company | 112,680 | 177,982 |
| One-off income and expenses | 3,996 | 1,983 |
| Results from divestments and purchase price allocations in the result of associates | -22,454 | -51,891 |
| Impairments | 8,504 | 3,720 |
| Fair value changes of financial liability for earn-out and put options of shareholders | ||
| of non-controlling interests | -733 | 146 |
| Tax impact on one-off expenses and benefits | -3,125 | -1,426 |
| Net profit before amortization and one-off income and expenses attributable | ||
| to the shareholders of the company | 98,868 | 130,514 |
Normalized effective tax rate
Tax on result divided by Result before tax less the impact of Share in result of associates, Result on sale of associates and subsidiaries and Fair value changes of financial liability for earn-out and put options of shareholders of non-controlling interests.
The mentioned elements can hinder the insight in the tax burden TKH incurs as those are nontaxable. Therefore the normalized effective tax rate is deemed an useful measure in reporting our tax burden.
| in thousands of euros (unless stated otherwise) | 2024 | 2023 |
|---|---|---|
| Result before tax | 123,531 | 202,942 |
| Less: Share in result of associates | -249 | 3,309 |
| Less: Result on sale of associates and subsidiaries | -24,221 | -54,802 |
| Less: Fair value changes of financial liability for earn-out and put options of shareholders of non-controlling interests |
-733 | 146 |
| Normalized result before tax | 98,328 | 151,595 |
| Tax on result | 24,000 | 37,180 |
| Normalized effective tax rate | 24.4% | 24.6% |
One-off income and expenses
Income and expense items of such nature, size and/or frequency of occurrence that their disclosure is relevant to explain TKH performance, including impairments, restructuring costs and gains and losses from acquisition and disposal. One-off income and expenses are identified both within the
operating result, result of associates, result from divestments and fair value changes of financial liability for earn-out and put options of shareholders of non-controlling interests.
One-off income and expenses are excluded when using as a measure to improve insight in the underlying performance of our activities.
Reference is made to the consolidated financial statements for further details.
Operating expenses excluding one-off expenses, amortization and impairments
This relates to the operating expenses excluding one-off expenses, amortization and impairments. This is used when reconciling between Added value and EBITA excluding the one-off income and expenses.
| in thousands of euros | 2024 | 2023 |
|---|---|---|
| Total Operating expenses | 1,582,127 | 1,673,063 |
| Less: Raw materials, consumables, trade products and subcontracted work | -824,229 | -928,220 |
| Less: One-off income and expenses | -3,996 | -1,983 |
| Less: Amortization | -60,808 | -56,860 |
| Less: Impairments | -8,504 | -3,720 |
| Operating expenses (excluding one-off expenses, amortization and impairments) |
684,590 | 682,280 |
Order book and order intake
Expected future turnover with respect to contractual performance obligations that have not yet (or partially) been satisfied at balance sheet date.
Reference is made to the consolidated financial statements for further detail.
The order intake is calculated as follows:
| Smart Vision systems |
Smart Manufacturing systems |
Smart Connectivity systems |
Total | ||||||
|---|---|---|---|---|---|---|---|---|---|
| In thousands euros | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| Order book at 1 January | 124,035 | 159,173 | 631,285 | 572,989 | 214,784 | 239,744 | 970,105 | 971,907 | |
| Acquisitions and divestments | 343 | 10,896 | -37,231 | 0 | 3,144 | -33,745 | 10,788 | ||
| Turnover | -489,597 | -500,526 | -608,843 | -573,563 | -631,900 | -800,540 | -1,712,735 | -1,847,532 | |
| Order intake | 505,080 | 454,492 | 516,295 | 631,859 | 907,611 | 775,580 | 1,911,379 | 1,834,942 | |
| Order book at 31 December | 139,861 | 124,035 | 501,506 | 631,285 | 493,638 | 214,784 | 1,135,004 | 970,105 |
Organic turnover growth
Growth of turnover corrected for the impact of acquisitions, divestments and foreign exchange effects from translating turnover in foreign currencies. The correction for divestments is determined by adjusting 'Turnover growth' for the turnover of the previous year period for which the divested company was no longer part of the consolidation in the current year. The correction for acquisitions is determined by adjusting 'Turnover growth' for the turnover of the current year period for which the acquired company was not yet part of the consolidation in the previous year.
This is used as a measure to improve insight in and comparability of our turnover development which can potentially be hindered by the effects of acquisitions, divestments and foreign exchange effects.
| Smart | Smart | Smart | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Vision | Manufacturing | Connectivity | Other & | Total | |||||
| Systems | in % | Systems | in % | Systems | in % | eliminations | 2024 | in % | |
| Turnover current year | 489,597 | 608,843 | 631,900 | -17,605 | 1,712,735 | ||||
| Turnover previous year | 500,526 | 573,563 | 800,540 | -27,097 | 1,847,532 | ||||
| Turnover growth Impact of acquisitions |
-10,929 | -2.2% | 35,280 | 6.2% | -168,640 | -21.1% | 9,492 | -134,797 | -7.3% |
| & divestments | -10,048 | -2.0% | 27,895 | 4.9% | 93,514 | 11.7% | 0 | 111,361 | 6.0% |
| Impact of foreign exchange effects |
-1,117 | -0.2% | 506 | 0.1% | 1,161 | 0.1% | 0 | 550 | 0.0% |
| Organic turnover growth |
-22,094 | -4.4% | 63,681 | 11.1% | -73,965 | -9.2% | 9,492 | -22,886 | -1.2% |
Organic EBITA growth
Growth of EBITA excluding the one-off income and expenses corrected for the impact of acquisitions, divestments and foreign exchange effects from translating EBITA in foreign currencies. The correction for divestments is determined by adjusting 'EBITA growth' for the EBITA of the previous year period for which the divested company was no longer part of the consolidation in the current year. The correction for acquisitions is determined by adjusting 'EBITA growth' for the EBITA of the current year period for which the acquired company was not yet part of the consolidation in the previous year. This is used as a measure to improve insight in and comparability of our EBITA development which can potentially be hindered by the effects of acquisitions, divestments and foreign exchange effects.
| Smart Vision Systems |
in % | Smart Manufacturing Systems |
in % | Smart Connectivity Systems |
in % | Other & eliminations |
Total 2024 |
in % | |
|---|---|---|---|---|---|---|---|---|---|
| EBITA current year | 77,732 | 116,113 | 30,920 | -20,849 | 203,916 | ||||
| EBITA previous year | 85,886 | 90,636 | 81,132 | -20,621 | 237,033 | ||||
| EBITA growth Impact of acquisitions |
-8,154 | -9.5% | 25,477 | 28.1% | -50,212 | -61.9% | -228 | -33,117 | -14.0% |
| & divestments | -2,645 | -3.1% | 2,573 | 2.8% | 15,014 | 18.5% | 0 | 14,942 | 6.3% |
| Impact of foreign exchange effects |
-170 | -0.2% | 131 | 0.1% | 393 | 0.5% | 0 | 354 | 0.1% |
| Organic EBITA growth |
-10,969 | -12.8% | 28,181 | 31.1% | -34,805 | -42.9% | -228 | -17,821 | -7.5% |
The EBITA in the table above is excluding the one-off income and expenses
Solvency
Percentage of the Total group equity relative to the Total equity and liabilities. This percentage is presented to express the financial strength of TKH.
| in thousands of euros (unless stated otherwise) | 2024 | 2023 |
|---|---|---|
| Total group equity | 883,087 | 835,713 |
| Total equity and liabilities | 2,213,341 | 2,127,779 |
| Solvency | 39.9% | 39.3% |
Turnover related to the sustainable development goals
Total of TKH's portfolio's turnover linked to one of the 17 SDGs (Sustainable Developments Goals), adopted by all United Nations Member States in 2015. This is calculated by allocating TKH's portfolio based on internal reporting of turnover by end-market combined with portfolio information included in quarterly reports of operating companies. This measure provides useful information about the ability of TKH to bring portfolio to the market which is connected to one of the SDGs. Reference is
made to the chapter 'Sustainability statements' which includes a paragraph 'Sustainable Development Goals'.
| in thousands of euros (unless stated otherwise) | 2024 | 2023 |
|---|---|---|
| Turnover linked to SDGs | 1,226,631 | 1,296,403 |
| Total Turnover | 1,712,735 | 1,847,532 |
| Turnover linked to SDGs % | 71.6% | 70.2% |
Working capital ratio
Working capital ratio is calculated by dividing working capital by turnover.
| in thousands of euros (unless stated otherwise) | 2024 | 2023 |
|---|---|---|
| Current assets | 963,361 | 968,318 |
| Less: Cash and cash equivalents | -125,629 | -93,697 |
| Current liabilities | -622,177 | -641,377 |
| Add: Current interest-bearing loans and borrowings | 90,270 | 75,864 |
| Working capital | 305,825 | 309,108 |
| Turnover | 1,712,735 | 1,847,532 |
| Working capital ratio | 17.9% | 16.7% |