Investor Presentation • Nov 11, 2024
Investor Presentation
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01.01.2024 - 30.09.2024
About Kron
Shareholder Structure
Kron Technologies stands out as a leading technology company in the cybersecurity sector, offering a broad suite of access and data security products. Reputable research institutions like Gartner and KuppingerCole have recognized Kron as one of the world's leading access and data security companies. Serving more than 1000 projects across 30 countries, the company has been listed on the Borsa Istanbul (BIST: KRONT) since 2011 and operates globally through offices, distributors, and partners across 6 continents.
Kron Technologies, established in 2007 to provide software solutions to telecommunications operators, expanded its focus in 2012 to include operational efficiency and cybersecurity solutions for service providers, financial institutions, and large enterprises. Addressing infrastructure, operational, and security challenges in digital transformation—a top priority for all organizations—has been a core value of Kron's innovative approach.
Kron's competitive edge lies in its talented engineering team, which works within a non-hierarchical structure to foster a collaborative, creative environment. The company is driven by the values of speed, reliability and quality, while maintaining an emphasis on human needs and flexible work environments.
The growing demand for advanced technology, driven by heightened security needs, regulatory changes, and cyber- attacks, motivates Kron Technologies to innovate continuously. The company is committed to developing next- generation technology at its 3 R&D centers in Turkey while expanding its global footprint.
To broaden its reach, the company is increasing investment in partner channels as part of its 2024 strategy. With support from its main offices in Turkey and the United States, Kron Technologies continues to expand globally, remaining committed to core values such as customer proximity, a deep understanding of customer needs, and timely service delivery.
As of September 30, 2024, the total number of employees at Kron Technologies is 161. (31 December 2023: 130)
Corporate Name Kron Teknoloji Anonim Şirketi
Headquarter İ.T.Ü. Ayazağa Kampüsü, Teknokent ARI3 Binası, No:B401, Maslak, Sarıyer, İstanbul, Türkiye
T:+90 212 286 51 22 F:+90 212 286 53 43
Ankara Branch Bilkent Cyberpark, C-blok, K:3 No:321, Bilkent - Ankara
İzmir Branch Akdeniz Mah. 1353 Sk. Armesa İş Merkezi, No:2, Kat:1 Konak-İzmir
Kron Technologies US 3 2nd Street Suite 201, Jersey City, NJ,07302, USA
Trade Registry Number 547587
Web Adress www.krontech.com
E-Mail Adress [email protected]
Listing Venue Borsa İstanbul
Listing Date 27 Mayıs 2011
Ticker KRONT
Market Bist Main
Kron's paid-in capital is 85,611,078 TL and consists of 85,611,078 shares with a nominal value of 1 TL.
As of September 30, 2024, the company's shareholder and capital structure is as follows:
| SHAREHOLDER | SHARE GROUP | NUMBER OF SHARES |
|---|---|---|
| ZEYNEP YENEL ONURSAL | A | 8,561,112 |
| ZEYNEP YENEL ONURSAL | B | 2,568,332 |
| LÜTFİ YENEL | B | 15,082,168 |
| FREE FLOAT | B | 59,399,466 |
| TOTAL | 85,611,078 |
| COMPANY NAME | HEADQUARTER | EQUITY STAKE PERCENTAGE |
|---|---|---|
| KRON TECHNOLOGIES US | NEW JERSEY - USA | 100% |
The Chairman and members of the Board of Directors are vested with the powers set forth in the relevant articles of the Turkish Commercial Code and Articles 10 and 11 of the Company's Articles of Association. Our Board of Directors consists of 6 members, and their term of office is 3 years. The members of the Audit Committee are vested with the powers set forth in Article 25 of the Communiqué (II-17.1) of the Capital Markets Board and Communiqué Series: X No: 22, and the provisions of the relevant legislation of the Capital Markets Board.
Lütfi Yenel, founder of Kron, serves as the Chairman of the Board of Kron. Previously, Yenel was Alcatel-Lucent Turkey's Chairman and CEO and Alcatel-Lucent International's Vice President responsible for Turkey, CIS and Middle East regions. He joined Alcatel in 1995, and left Alcatel before Kron was founded.
Prior to Alcatel, he served as Chairman and CEO of Vestel and a member of the Board of Directors of Sansui / Japan. Lutfi Yenel has held a number of Board Membership positions in leading institutions including Sabancı Holding, Turkish Industry and Business Association (TUSİAD), International Investors Association (YASED), Turkey Quality Association (KALDER) (Vice Chair) and International Chamber of Commerce (ICC) Electronic Commberce and Telecom Committee. Lütfi Yenel holds a master's degree in Electronic Engineering and Business Administration.
Ayse Yenel earned a Bachelor of Science Degree in Industrial Engineering from Lehigh University. She started her career at JP Morgan Chase in the United States back in 1999. After holding various positions in Credit Analytics and Strategy Management she left JP Morgan as Vice President of Credit Cards Business to move to Turkey.
In 2004, Ayse joined HSBC Turkey to form the Retail Credit Analytics team. She worked under the Risk Function in a number of roles for 10 years including Chief Risk Officer for the Retail Bank. She moved to Retail Banking as Chief Operating Officer in 2014. Ayse was appointed as Assistant General Manager of HSBC Turkey responsible from Wealth and Personal Banking in 2017. Additionally, Ayşe served as Vice Chairperson of HSBC Portföy Yönetimi A.Ş.
AYŞE YENEL Vice - Chairperson
Ayse joined Kron Technologies in 2023 and currently serves as Executive Committee Chair and Vice Chairperson of the Board.
ZEYNEP YENEL ONURSAL Board Member
Zeynep Yenel Onursal graduated from the University of Pennsylvania, Wharton School with a Bachelors in Science Degree in Finance. Zeynep started her career in 2007 at Goldman Sachs in New York. Between 2010 and 2016, she held various leadership positions in the Leveraged Finance, M&A and Financial Sponsors Groups at Goldman Sachs in London. In 2016, Zeynep assumed Country Head responsibility for Goldman Sachs in Turkey as Managing Director. She held this role until 2023.
In addition to her career in finance, Zeynep serves on the board of the American Turkish Society (ATS) to help enhance business and cultural ties between the US and Turkey.
Zeynep joined Kron Technologies in 2023 and currently serves as Vice Chair of the Executive Committee and a Board member.
Emre Baran is an entrepreneur and a software executive with 20+ years of experience in both B2B and B2C product areas. He is currently the co-founder and CEO of Cerbos; a plug-and-play authorization service for software.
Emre was the co-founder and CTO of Yonja.com, Turkey's largest social network in the mid 2000s. After getting his MBA, he joined Google as a senior product manager.
After Google, Emre and his three former colleagues founded Qubit. During his 10 year tenure, as the CTO and a board director, Emre was responsible for the product development and technology of Qubit throughout different phases of the company's development.
Emre is an angel investor and advises various early-stage companies and entrepreneurs. He also is an Expert-in-Residence at Seedcamp; Europe's leading seed stage investor. He holds degrees in Economics and Computer Science from the University of Pennsylvania and an MBA from INSEAD.
ZEYNEP TOKMAN CESUR Independent Board Member
Zeynep Tokman Cesur is a graduate of the Department of Sociology and International Relations at Middle East Technical University (ODTÜ). She completed her MBA at Purdue University.
Her career began in 2000 at Hewlett Packard, where she undertook various roles in the marketing and human resources departments. Cesur has also held high-level marketing positions at companies such as Sabancı Holding, Microsoft, Adobe, PayCore, and Dassault Systems.
She has also engaged in voluntary work for YenidenBiz, a social responsibility platform aimed at increasing women's participation in the workforce.
Yavuz Suat Bengür graduated from Middle East Technical University, Department of Electrical Engineering, Communication-Microwave group in 1981, and started to work as an R&D engineer at ASELSAN in the same year. Mr. Bengür completed his master's degree in Electrical and Electronics Engineering at Middle East Technical University in 1985. He took multiple roles at ASELSAN between 1992-2017 respectively as Communications Electronic Warfare System Engineering Manager, Defense Programs Business Development Manager, Naval Combat Systems Program Director, Naval Systems Program Director, founding President of Transportation, Security, Traffic/Automation and Energy (UGES) Sector Presidency, and Deputy General Manager. Mr. Bengür designed and managed numerous projects at ASELSAN.
During the period of October 2017-July 2018, Mr. Bengür assumed duties as ASELSAN's Board of Directors Consultant and Deputy Chairman of the Board of Directors of the "ASELSAN Middle East-AME" company in Jordan. He retired from ASELSAN in July 2018. Then he served on the Board of Directors of the Turkish Electronics Industrialists Association (TESID) in the 2016-2018 period. Mr. Bengür still works as the General Secretary of TESID and works as a part-time lecturer at the Faculty of Engineering at Çankaya University.
Independent Board Member
In accordance with the applicable regulations of the Capital Markets Board (CMB), an Audit Committee, a Corporate Governance Committee, and a Committee for Early Detection of risk have been established in our company to ensure that the Board of Directors fulfills its duties and responsibilities properly. It was decided that the duties of a separate Nomination Committee and Remuneration Committee, as stipulated in the Corporate Governance Principles, will be carried out by the Corporate Governance Committee.
| NAME | ROLE | INDEPENDENCE |
|---|---|---|
| Yavuz Suat Bengür | Committee Chairperson | Independent |
| Zeynep Tokman Cesur | Member | Independent |
The Audit Committee takes all necessary measures to ensure that all internal and independent external audits are conducted sufficiently and transparently, and fulfills the duties assigned by the Capital Markets Legislation. The working principles of the committee have been determined in accordance with the CMB Corporate Governance Principles and disclosed on the company's website. The committee consists of two independent board members. During the Third Quarter of 2024, one meeting was held.
| NAME | ROLE | INDEPENDENCE |
|---|---|---|
| Yavuz Suat Bengür | Committee Chairperson | Independent |
| Lütfi Yenel | Member | Not Independent |
| Onur Çelik | Member | Not Independent |
The Corporate Governance Committee is responsible for monitoring compliance with the Corporate Governance Principles, investigating how well these principles are implemented within the company, identifying reasons for non-implementation, and determining any issues and conflicts of interest arising from partial implementation. The committee also fulfills the duties of the Nomination and Remuneration Committees. Its duties and working principles have been determined by the Board of Directors, documented, and disclosed to the public. During the Third Quarter of 2024, the committee fulfilled its stated duties. It consists of two non-executive board members and the head of the investor relations unit, with Yavuz Suat Bengür serving as the Chairperson, who holds independent status. The committee has met twice in 2024 and has reported to the Board of Directors twice.
| NAME | ROLE | INDEPENDENCE |
|---|---|---|
| Zeynep Tokman Cesur | Committee Chairperson | Independent |
| Lütfi Yenel | Member | Not Independent |
The Committee for Early Detection of Risks advises the Board of Directors on matters that could impact the company's operations. These matters include identifying, a defining, prioritizing, monitoring, and reviewing risks and opportunities in strategic, financial, or operational areas; calculating their impact and probability; managing these risks and opportunities in line with the company's risk profile and appetite; and reporting and considering them in decision-making mechanisms.
The committee was established by the board and fulfilled its duties in the Third Quarter of 2024, reviewing the company's risk management system and presenting its report to the board. The committee chairperson is an independent board member and consists of two non-executive members. One meeting was held during the Third Quarter of 2024.
In accordance with the authority granted to our Board of Directors pursuant to the first paragraph of Article 367 of the Turkish Commercial Code and Article 11 of our Company's articles of association, a decision was made on 21/02/2024 to establish an Executive Committee. This committee will be responsible for and authorized to handle principal matters not requiring a decision directly from the Board of Directors or the General Assembly. The structure of the committee and the duties and responsibilities of the Executive Committee members have been regulated through internal guidelines, and our company's Executive Committee has been formed as follows:
Our company held an Extraordinary General Assembly on April 16, 2024, and the 2023 Annual Ordinary General Assembly on June 5, 2024
The minutes of the General Assembly meeting were published on the Public Disclosure Platform (KAP) and our company's website the same day, informing investors.
METE SANSAL CEO
KEVIN MARVIN General Manager, North America
ONUR SEMİH SEVİM WEU & LATAM Sales Director
PINAR GÜNGÖR BİLGİN Project Management Office Director
ERHAN YILMAZ PAM Product Management Director
HAKAN OTAL Operation & Delivery Director
FUAT ALTIOĞLU CFO
SERHAT ÜMİT ÇELİK Türkiye Enterprise Sales Director
MEHMET A. TANSAL Turkcell Group Sales Director
CANEL GÜRGEN ARCAK HR Director
BARAN BARUT Telco Solutions Director
ERTÜRK VAROL Cyber Security Operations & Delivery Director
SERDAL YILDIZ CTO
LEVENT ARS MEA & APAC Sales Director
BERKAY MEKER Turk Telekom Group Sales Director
AHMET CEMAL AKGÜN Marketing & Channel Management Director
AKIN KÜÇÜK Software Development Director
ALİ ORKUN DUMURCAKLI Cyber Security Solutions Director
MEHMET ILGAZ CPO
MANOJ PANCHAL MEA Region Director
BORA DÖNMEZ Türkiye Government & Finance Sales Director
JEN WALTZ North America Alternate Channel Director
SİNAN KESKİN Software Development Director
EVGİN DUYARLI Cyber Security Solutions Lead
As Kron Technology, we continue to strengthen our pioneering role in the sector with our innovative solutions in data security and cybersecurity. We are committed to providing reliable and effective solutions that meet our clients' needs through our achievements and strategic projects both domestically and internationally.
Our project, "DEVELOPMENT OF A SCALABLE AND INTEGRATED PLATFORM FOR PROCESSING TELEMETRY DATA," which we submitted to the Ministry of Industry and Technology under the 1501-Industrial R&D Support Program, has been approved for funding. This support will accelerate our R&D efforts, helping us to make a broader impact in the sector. This product aims to ensure that organizations manage security and infrastructure monitoring data (e.g., logs) in the most efficient and vendor-independent manner, integrating with other tools as needed. Additionally, it aims to enable clients to control their data infrastructure independently of the vendors.
The Ministry of Transport and Infrastructure published its National Cybersecurity Strategy and Action Plan for 2024-2028 in the third quarter. This action plan serves as a roadmap for securing our country's digital future. Our cybersecurity products, especially PAM, play a critical role in achieving these strategic goals.
13
Prepared in accordance with IAS 29
| SUMMARY INCOME STATEMENT |
30.09.2024 | 30.09.2023 |
|---|---|---|
| NetRevenue | 218,382,922 | 248,001,474 |
| GrossProfit | 183,876,465 | 213,674,907 |
| Operating Expenses | -176,750,586 | -160,224,542 |
| Other Income / Expenses from Operating Activities, Net |
18,264,454 | 36,734,651 |
| OperatingProfit/Loss | 7,125,879 | 53,450,365 |
| Financial Income / Expenses, Net | 3,601,773 | -7,379,085 |
| Net Monetary Positions Gains/Loss | -57,480,333 | -48,655,352 |
| Profit/LossBeforeTaxes | -44,767,786 | -286,281 |
| Deferred Tax Income / Expense | 7,864,086 | -4,885,205 |
| Profit/Loss from ContinuingOperations | -36,903,700 | -5,171,486 |
| EBITDA | 50,234,352 | 88,048,446 |
| PROFITABILITY RATIO |
30.09.2024 | 30.09.2023 |
| Gross Margin | 84% | 86% |
| Operating Profit Margin | 3% | 22% |
| EBITDA Margin | 23% | 36% |
Our consolidated revenues for the first nine months of 2024, after IAS 29 adjustments, decreased by 12% compared to last year, reaching 218 million TL. In this period, international sales constituted 38% of total revenue, with foreign currency-based sales accounting for 52% of total sales.
Our gross profit declined by 14%, from 213.7 million TL to 183.9 million TL, compared to the previous year. This decrease was primarily due to the fact that a significant portion of our sales are either foreign currency-based or indexed to foreign currency, and the currency appreciation rate remained below the inflation rate during the same period.
Additionally, our strategy of increasing subscription sales within our sales model, which is a core element of our strategy, has led to a short-term drop in revenues, but it represents a significant development for the predictability and sustainability of our revenues in the medium to long term.
Our operating profit fell from 53.5 million TL in the same period last year to 7.1 million TL. Financial Income/Expenses showed an improvement compared to last year due to the repayment of a large portion of our loans, shifting from a 7.4 million TL loss to a 3.6 million TL gain.
EBITDA decreased by 43%, from 88 million TL to 50.2 million TL.
In the first nine months of 2024, our subscription-based revenues accounted for 26.5% of our total invoiced revenues, significantly higher than last year's level of 9.6%. This demonstrates the strategic success of our transition to a recurring revenue model and our commitment to increasing customer loyalty. The rise in our subscription revenues also contributes to a more stable cash flow. In the third quarter of 2024, our balance sheet structure continued to strengthen.
Our net cash position, which stood at 37.1 million TL in December 2023, increased to 68.1 million TL during this period. We reduced our bank debt from 45.1 million TL to 21.9 million TL, significantly lowering our debt ratio.
Prepared in accordance with IAS 29
| BALANCE SHEET (TL) |
30.09.2024 | 31.12.2023 |
|---|---|---|
| TotalCurrent Assets | 232,804,467 | 363,839,784 |
| Cash,Cash Equivalents and FinancialInvestments | 91,581,776 | 84,047,518 |
| TradeReceivables | 131,613,970 | 267,601,701 |
| NetFixedAssets | 10,250,684 | 7,593,604 |
| IntangibleAssets, Net | 291,113,793 | 250,648,365 |
| TotalAssets | 597,379,001 | 674,676,535 |
| Short-Term Debt | 21,930,359 | 45,778,935 |
| Equity | 374,872,246 | 424,804,874 |
| LIQUIDITY RATIOS |
30.09.2024 | 31.12.2023 |
| Current Ratio | 2.33 | 2.28 |
| Liquidity Ratio | 2.32 | 2.27 |
| FINANCIAL STRUCTURE RATIOS |
30.09.2024 | 31.12.2023 |
| Equity / Total Liabilities | 63% | 63% |
| Short-Term Liabilities / Total Liabilities | 17% | 24% |
| Long-Term Liabilities / Total Liabilities | 21% | 13% |
T +90 (212) 286 51 22 F +90 (212) 286 53 43 E [email protected] I.TU. Ayazağa Kampusu, Teknokent ARI 3 Binasi, No: B401, Maslak, Sariyer, Istanbul, Türkiye
Akdeniz Mah. 1353 Sk. Armesa Iş Merkezi, No: 2 Kat: 1 Konak, Izmir - Türkiye
T +90 (232) 484 13 97 E [email protected]
Bilkent CyberPark, C - Blok, No: 321 Bilkent, Ankara - Türkiye
T +90 (312) 265 06 86 F +90 (312) 265 06 87 E [email protected]
3 2nd Street, Suite 201 Jersey City, NJ, 07302 United States of America
T +1 646 869 23 88 E [email protected]
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