Investor Presentation • Apr 3, 2023
Investor Presentation
Open in ViewerOpens in native device viewer
We are a fast-moving multinational technology leader.
4,475 Employees (2022) 1.2bn 2023E Revenue (EUR)*
66m
10%
2023E Net result (EUR)*
Organic growth p.a.*
HQ in Austria; listed in Germany
Transformation update
Healthy start into new area with positive momentum in CO
| Mio EUR |
31 12 2022 |
31 12 2021 |
31 12 2022 |
31 12 2021 |
|
|---|---|---|---|---|---|
| NON-CURRENT ASSETS |
415 1 , |
519 0 , |
CAPITAL AND RESERVES |
635 7 , |
423 3 , |
| Fixed Assets |
379 0 , |
478 8 , |
Equity | 442 8 , |
423 3 , |
| of , plant and equipment Property as |
95 6 , |
132 5 , |
of shares Treasury as |
0 0 , |
-46 8 , |
| of Goodwill as |
189 4 , |
208 3 , |
NON-CURRENT LIABILITIES |
268 7 , |
348 2 , |
| Other Assets |
36 1 , |
40 2 , |
loans and borrowings Long-term |
193 8 , |
238 4 , |
| CURRENT ASSETS |
1029 8 , |
833 2 , |
Other Liabilities Non-Current |
74 9 , |
109 8 , |
| Inventories | 192 6 , |
187 3 , |
CURRENT LIABILITIES |
587 7 , |
580 7 , |
| Trade receivables |
148 1 , |
214 1 , |
Trade payables |
226 3 , |
270 0 , |
| from Contract Assets Customers |
54 2 , |
51 3 , |
Liabilities from Contract Customers |
71 0 , |
85 0 , |
| Cash and cash equivalents |
437 8 , |
296 5 , |
Short-term loans and borrowings |
125 7 , |
72 3 , |
| Other receivables and prepayments |
190 8 , |
83 9 , |
Other Liabilities Current |
159 9 , |
153 4 , |
| classified held for sales assets as |
6 3 , |
0 0 , |
liabilities classified held for sale as |
4 8 , |
|
| Total Assets |
1445 0 , |
1352 2 , |
Total Liabilities & Equity |
1445 0 , |
1352 1 , |
| Equity Ratio |
44 0% , |
31 3% , |
|---|---|---|
| Cash/(Net Debt)* Total Net |
118 3 , |
(14) |
| 15** Working Capital excluding IFRS |
114 4 , |
149 9 , |
Very strong cash position: EUR 438m cash and EUR 138m purchasing price Vinci yet to be paid (~EUR 80m in Q1/2023)
Continued Operations inventory reduced in Q4/2022 by ~EUR 50m → Strong operating Cash Flow of EUR 109.3m in Q4/2022
| In TEUR | Op. Cash Flow Adjustments |
|---|---|
| 44,443 | Stated Operative Cash flow |
| -4,903 | Increase in A/R factored in 2022 |
| 39,540 | Adjusted Op. Cash Flow |
| Organic Growth In TEUR |
FY21 | FY22 |
|---|---|---|
| Stated revenues | 1,002,935 | 1,096,095 |
| Divestment (RUS/UA/BY/MD) | 44,803 | |
| Organic Growth | 13.8% |
| Geographical Split FY FY22 | ||
|---|---|---|
| (In %) | Revenue | EBITDA |
| Europe | 77.1% | 95.4% |
| North America | 11.8% | 4.4% |
| Asia | 6.7% | 8.1% |
| RUS/UA/BY/MD | 4.5% | -7.9% |
| S&T AG 2021 | New Kontron 2023 | Comment | |
|---|---|---|---|
| Revenues (EUR m) | 1,342 | ~1,200 | Reflects divestment of EUR 387m in IT service and EUR 40m in Russia |
| Order backlog | 1,334 (1160 CO) | 1,460 (Dec-22) | IT divestment already replaced by new IoT orders |
| Design win pipeline | 3,367 (Dec-21) | 3,407 (Dec-22) | Strong IoT design win pipeline |
| Gross margin (%) | 36% | > 40% | Change in product mix, will increase margins starting 2023 |
| Net profit (EUR m) | 48.3 (3.6%) | 66 (5,5%) | Will increase in 2023 despite divested IT services |
| Employees (#) | 6,206 | 4,475 | Decline driven by project "Focus" and departure from Russia |
| Entities (as of operative) | 78 (78) | 48 (32) | Much less complex structure with no relevant minorities |
| Exposure CIS region | 7% CIS | 3% | Not material anymore, further reduction in 2023 |
| Equity ratio | 32% | 44% | |
| Cash & cash equivalents (EUR m) |
296 | 438 + 138 (Dec-22) | Important in current interest rate increases |
| Peer group | |||
| Strategy | The new Kontron is focused on global IoT technology leadership, higher margins (7% net), but not IT and East Europe |
7 divisions in 3 segments
› SW/solutions segment and go global (USA, China)
› Russia, Belarus, Ukraine, IT Services/Focus
(in EUR m)
First transaction H1/2023, Kontron intends to acquire min. EUR 250m in 2023 and another EUR 250m in 2024 (chance > 50%)
worldwide by 2025
Industrial IoT revenue with a 11.4% CAGR from 2022
machines connected to the Internet by 2025
of 5G across mobile internet connections by 2025
High entry barriers: single source customization – real time Software – expensive customer products with low volume
Sources: Mgmt. estimates, Techjury, Ericsson, Enterra Solutions, Markets and Markets, Market Data Forecast, McKinsey Global Institute, Statista
| Selected competitors in Industrial IoT |
Revenue (in USD m) |
Region |
|---|---|---|
| Mercury* | 3,800 | North America |
| Curtiss Wright* | 2,500 | North America |
| Advantech | 1,900 | Asia |
| Kontron* | 1,342 | Europe |
| Beckhoff | 1,200 | Europe |
| ABB B&R | 705 | Europe |
| Adlink | 350 | Asia |
| Seco | 116 | Europe |
| Eurotech | 63 | Europe |
| % as of total market (USD 148bn) | 9% |
* Also not Industrial IoT revenues
| (in EUR bn) | Backlog | Design wins | Top 10 Customers 2022 | Country | Volume EUR | |||
|---|---|---|---|---|---|---|---|---|
| 4 | Czech railway provider | CZ | 24.7 Mio. | |||||
| 3,5 | 3,41 | Multinational telecom provider | UK | 16.5 Mio. | ||||
| 2,97 | Medical respiratory machines | GER | 16.5 Mio. | |||||
| 3 | UK railway provider | UK | 13.1 Mio. | |||||
| 2,5 | 2,35 | Global leader in medical equipment | USA | 11.8 Mio. | ||||
| 2 | Chemical glass company | USA | 10.2 Mio. | |||||
| 1,5 | 1,46 | French railway provider | FR | 10.1 Mio. | ||||
| 1,16 | Automation manufacturer | GER | 8.0 Mio. | |||||
| 1 0,80 |
Machine manufacturer | GER | 8.0 Mio. | |||||
| 0,5 | Medical manufacturer | GER | 7.1 Mio. | |||||
Top 10 customers account for 12% of revenues > 3,000 customers in total
| Status liquidity Dec. 2022 › EUR 437.8m cash on hand › EUR 138m ST receivables from Vinci (80m in Q1) › EUR 120m available lines › EUR 125.7m ST debt Liquidity amounts to EUR 700m |
Cash usage for acquisitions and operations › Reduce factoring ST/debt by min. EUR 50m › Saves EUR 2m interest p.a. › Spend min. EUR 300m in acquisitions |
||||
|---|---|---|---|---|---|
| Cash generation | Shareholder participation | ||||
| Operat. CF | 2022 | 2022 | 2021 | 2021 | › EUR 63m: Propose dividend of 1EUR/share in May › Rule: Spend 50% of net earnings in Dividend or SBB |
| EUR m | Total | Cont. Op. | Total | Cont. Op. | › 2023: SBB EUR 10m started, increase depending |
| Total | 44.4 58.8 95.3 64.5 |
on share price | |||
| We expect operat. CF of min. EUR 70m in 2023 | 2023 spend min. EUR 75m (up to EUR 150m) |
2024 est. min. EUR 35m
Products and Technologies
Guidance 2023 increased by 10% to EUR 66m – we expect no extraordinary effects
| Guidance 2023 & Outlook 2025 | ||||
|---|---|---|---|---|
| 2023E | 2025E | |||
| Revenue | EUR 1,200m | EUR 2,000m | ||
| EBITDA | > 11% | 13% | ||
| Net Profit | 66m | 140m |
Vision 2030: Transformation to IoTaaS / SLAs will boost Net Earnings close to 10%
› Guidance 2023:
› MSCI Rating increased
› UN Global Compact joined and 9 SDG's identified we support
Making our data easily accessible and transparent to our diverse stakeholder groupswill become increasingly important
| Preparation scope I and II Reporting expansion (incl. EU Taxonomy) ✓ ESG-Goal extension ✓ ESG-Risk assessment ✓ Update material analysis ✓ |
Evaluation ESG-Goals Implementation stage launched Enhanced reporting according to EU Taxonomy and ESG standards |
Implementation finalized Continuous improvement process |
|---|---|---|
| 2021 | Continuous stakeholder dialogue ✓ 2022 |
2023 |
Ennoconn 27.64%
Kontron Management - 7.02%
Amiral Gestion - 5.44%
Naneva B.V (PPF Holdings B.V.) - 5.29%
Freefloat 54,6% includes as follows
BNP Paribas Asset Management - 4.22%
Ninety One SA (Pty) Ltd - 4.15%
Allianz Global Investors GmbH - 4.10%
Ameriprise Financial, Inc. - 3.87%
| AlsterResearch | Buy: EUR 31.00 |
|---|---|
| Hauck & Aufhäuser | Buy: EUR 29.50 |
| Jefferies | Buy: EUR 24.00 |
| Kepler | Buy: EUR 24.00 |
| Pareto Securities | Buy: EUR 28.00 |
| Stifel | Buy: EUR 25.50 |
| Warburg Research | Buy: EUR 24.00 |
| Median Target Share Price | EUR 25.50 |
Target: Increase strategic shareholder base
2 additional analysts will take on coverage of Kontron
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 forward-looking statements are subject to inherent risks and uncertainties since they relate to future events and are based on current assumptions and estimates of Kontron AG, which might not occur at all or occur not as assumed. They therefore do not constitute a guarantee for the occurrence of future results or performances of Kontron AG. The actual financial position and the actual results of Kontron AG, as well as the overall economic development and the regulatory environment may differ materially from the expectations, which are assumed explicitly or implicitly in the forward-looking statements and do not comply to them. Analysts and investors, and any other person or entity that may need to take decisions or prepare or release opinions about the shares / securities issued by Kontron AG are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this document. Past performance cannot be relied upon as a guide to future performance.
Except as required by applicable law, Kontron AG undertakes no obligation to revise these forward-looking statements to reflect events and circumstances after the date of this presentation, including, without limitation, changes in Kontron's business or strategy or to reflect the occurrence of unanticipated events. The financial information and opinions contained in this document are unaudited and are subject to change without notice. This document contains summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by Kontron AG. None of the Company, its subsidiaries or affiliates or by any of its officers, directors, employees, advisors, representatives or agents shall be liable whatsoever for any loss however arising, directly or indirectly, from any use of this document its content or otherwise arising in connection with this document.
This document or any of the information contained herein do not constitute, form part of or shall be construed as an offer or invitation to purchase, subscribe, sale or exchange, nor a request for an offer of purchase, subscription, sale or exchange of shares / securities of Kontron AG, or any advice or recommendation with respect to such shares / securities. This document or a part of it shall not form the basis of or relied upon in connection with any contract or commitment whatsoever.
This document does not constitute an offer to purchase securities in the United States, Canada, Australia, South Africa and Japan. Securities, including the bond of Kontron AG may not be sold or offered for sale within the United States or to or for the account of / in favor of US citizens (as defined in Regulation S under the U.S. Securities Act of 1933 in the current version (the "Securities Act") unless they are registered under the regulations of the Securities Act or unless they are subject to an exemption from registration. Neither Kontron AG nor any other person intend to register the offer or a part thereof in the United States or to make a public offer of the securities in the United States.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.