Kardex Holding AG

Earnings Release • Mar 7, 2025

Media and Analysts Conference

06 March 2025

Questions and Answers

Introduction Jens Hardenacke, CEO Financials 2024 Thomas Reist, CFO Segment Reports Thomas Reist, CFO Outlook Jens Hardenacke, CEO

Introduction

Jens Hardenacke, CEO

Highlights 2024

• Record high bookings, net revenues, EBIT and net profit
• Continued positive demand for Kardex' intralogistics solutions
• Increased willingness by customers to invest in Standardized Systems but some hesitation for investments in Automated Products in H2
• Gross profit margin improved due to normalized material costs, partially offset by higher salaries and IT expenses
• Further intensified investments in innovation and digitalization
• ROIC remained on strong levels
• Dividend increase from CHF 5.00 to CHF 6.00 per share

Financials 2024

Thomas Reist, CFO

Kardex - Key Figures 2020 - 2024 (in EUR million)

EBIT and EBIT margin

Kardex - Income Statement (1/2)

in EUR million	2024	(%)	2023	(%)	(+/- %)
Bookings	791.2	100.0%	673.9	95.9%	17.4%
Order backlog (31.12.)	475.5	60.1%	475.9	67.7%	-0.1%
Net revenues	791.2	100.0%	702.9	100.0%	12.6%
Gross profit	276.8	35.0%	235.9	33.6%	17.3%
OPEX	178.4	22.5%	150.0	21.3%	18.9%
EBITDA	112.1	14.2%	99.3	14.1%	12.9%
EBIT	98.4	12.4%	85.9	12.2%	14.6%

• Bookings significantly increased with varying levels of demand in the business units
• Increased bookings and continued processing of steady order backlog combined with well performing Life Cycle Services translated into strong net revenues at new record levels
• GP margin improved as normalized material costs overcompensated higher personnel and IT costs
• OPEX increased as planned due to investments in R&D, IT and Marketing
• EBIT rises further and reaches new record levels; EBIT margin slightly increased and remains in the upper end of financial target range (10-14%)

Kardex - Income Statement (2/2)

in EUR million	2024	(%)	2023	(%)	(+/- %)
EBIT	98.4	12.4%	85.9	12.2%	14.6%
Financial result, net	5.1	0.6%	1.2	0.2%	325.0%
EBT	103.5	13.1%	87.1	12.4%	18.8%
Income tax	-22.7	-2.9%	-20.2	-2.9%	-12.4%
Tax rate	21.9%		23.2%
Result for the period	80.8	10.2%	66.9	9.5%	20.8%

• Financial result positively impacted by a significantly increased interest income for the year as well as a decrease in net FX losses
• Lower tax rate is mainly due to recognition of one-time effects (deferred tax assets)
• Significantly improved result of the period

Kardex - Balance Sheet

in EUR million	2024	2023	(+/-)	(+/-%)
Current assets	348.9	294.7	54.2	18.4%
thereof cash and cash equivalents	136.0	107.3	28.7	26.7%
thereof NWC (accounts receivable and inventories)	150.1	147.1	3.0	2.0%
thereof current fixed term deposits	37.3	12.3	25.0	203.3%
Non-current assets	144.6	127.5	17.1	13.4%
thereof financial assets	65.7	50.2	15.5	30.9%
Assets	493.5	422.2	71.3	16.9%
Liabilities	208.6	182.1	26.5	14.6%
thereof NWC (accounts payable)	61.3	44.9	16.4	36.5%
Equity	284.9	240.1	44.8	18.7%
Equity ratio	57.7%	56.9%
Equity and liabilities	493.5	422.2	71.3	16.9%

• Despite a substantial dividend payment, and sustained by a decrease of the NWC, the cash position increased significantly once again. Equity and the equity ratio rose considerably
• ROIC is with 36.1% at a high level (37.6%)

Kardex - Cash Flow Statement

in EUR million	2024	2023	(+/-)	(+/-%)
Result for the period	80.8	66.9	13.9	20.8%
Change in non-cash items	12.7	24.2	-11.5	-47.5%
Change in NWC	14.9	-26.9	41.8	155.4%
thereof accounts receivable	-1.7	-23.8	22.1	92.9%
thereof inventories	0.8	7.9	-7.1	-89.9%
thereof accounts payable	15.8	-11.0	26.8	243.6%
Change in other assets and liabilities	5.8	16.2	-10.4	-64.2%
Change in investments	-23.5	-34.2	10.7	31.3%
thereof CAPEX	-15.3	-19.7	4.4	22.3%
Free cash flow	90.7	46.2	44.5	96.3%

• Free cash flow was driven by a strong result for the period and further boosted by a reduced NWC
• Trade payables mainly increased due to several AutoStore projects which started shortly before year end

Segment Reports

Thomas Reist, CFO

Automated Products

Kardex Remstar

• Global organization providing Sales and Service in over 30 countries
• Automated solutions focusing on order fulfillment and storage/retrieval of single items

• 2'100 FTEs

• 140'000 installed solutions

• 2 manufacturing sites in Germany and 1 manufacturing site in the US
• A global industry partner for intralogistics solutions in its niche markets with a market share estimated at >35%

Automated Products - Financial Highlights 2024

in EUR million	2024	2023 (+/- %)
Bookings	515.5	527.6 -2.3%
Order backlog	271.7	313.7 -13.4%
Net revenues	557.1	530.7 5.0%
Gross profit	223.9	201.0 11.4%
Gross profit in %	40.2%	37.9%
EBIT	90.0	82.0 9.8%
EBIT in %	16.2%	15.5%
Employees	2'126	1'957 8.6%

• 2.3% decrease in bookings, driven by an 8.2% decrease in New Business, partially offset by a 12% increase in Life Cycle Services
• The order backlog went down with normalizing delivery times for Kardex Remstar machines to around eight weeks
• Gross profit margin increased due to US factory efficiency improvements and normalized material costs, offsetting higher personnel and IT costs
• Elevated OPEX due to strengthened workforce and spending on R&D and digitalization, with the rest of OPEX increasing moderately due to effective cost management
• EBIT increased by 9.8%, with EBIT margin remaining in the upper end of financial target (14-17%)

Automated Products - Key Figures 2020 - 2024 (in EUR million)

Standardized Systems

• German based organization with focus on the DACH region
• Automated solutions focusing on storage/retrieval of unit loads (pallets) and bins

• 370 FTEs

• 1'000 installed solutions worldwide

• 1 manufacturing site in Germany
• Strong market position in Germany and across Europe in selected Industry Segments

Kardex Mlog Kardex AS Solutions

• Global partner of AutoStore since 2021
• The AutoStore technology is an innovative and compact robot-based warehouse solutions
• Completes the existing Kardex portfolio

• 190 FTEs

• Since 2021: >80 won projects in all 3 geographical regions and >50 projects in operation
• Operates globally, based on established sales and service network

Standardized Systems - Financial Highlights 2024

in EUR million	2024	2023	(+/-%)
Bookings	276.0	146.5	88.4%
thereof Kardex Mlog	128.3	78.9	62.6%
thereof Kardex AS Solutions	148.0	67.6	118.9%
Order backlog	203.8	162.2	25.6%
thereof Kardex Mlog	120.1	96.0	25.1%
thereof Kardex AS Solutions	83.9	66.3	26.5%
Net revenues	234.4	172.3	36.0%
thereof Kardex Mlog	104.2	113.4	-8.1%
thereof Kardex AS Solutions	130.4	59.1	120.6%
Gross profit	52.9	34.9	51.6%
Gross profit in %	22.6%	20.3%
EBIT	14.4	9.3	54.8%
EBIT in %	6.1%	5.4%
Employees	522	412	26.7%

• 88.4% increase in bookings due to higher demand and reduced decision-making delays for larger projects
• 36% increase in net revenues driven by strong backlog
• 2.3%-points increase in gross profit margin due to pass-through of cost increases and higher capacity utilization
• OPEX under control due to effective cost management, despite continued investments in organization
• EBIT rose by 54.8%, with EBIT margin increasing to 6.1%, within the defined target range (5-8%)
• Kardex Mlog and Kardex AS Solutions benefiting from sales, service, and cost synergies

Standardized Systems - Key Figures 2020 - 2024 (in EUR million)

Outlook

Jens Hardenacke, CEO

Outlook

• Demand for intralogistics solutions expected to remain strong, while reshoring, labor shortages and automation remain key drivers
• Kardex with its Business Units is well-positioned to capitalize on these trends
• Economic and geopolitical uncertainties remain in some regions
• To boost growth, investments in the organization continue, mainly into the sales organization, marketing, R&D and IT infrastructure
• Standardized Systems might report an H1 EBIT margin level below the financial target for the full-year (5-8%) due to timing effects in project progress and continued investments in expansions
• Kardex increases net revenues growth target

Financial Targets as of 01 January 2025

KPI	Scope	Target
Net revenues growth	Group	EUR 1.5 bn by 2029-2031
EBIT margin*	Automated Products	14-17%
	Standardized Systems	5-8%
	Group	10-14%
ROIC	Group	> 25%
Dividend policy (payout ratio)	Group operational Net profit	up to 75%
Net debt/EBITDA	Group	< 2.5x

* over the cycle of 5 years Text in blue = changed from "5-7% p.a."

Questions and Answers

Disclaimer

This communication contains statements that constitute "forward-looking statements". In this communication, such forward-looking statements may include statements on the financial situation, earnings situation and business results of Kardex as well as certain strategic plans and objectives. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Kardex' ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Kardex' past and future filings and reports and in past and future filings, press releases, reports and other information posted on Kardex' websites. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Kardex disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.