KONTRON AG Investor
July 2024
Who we are
Leader of Smart Industrial IoT Solutions
7,800 1.9bn 190m
Employees* | Revenue (EUR)* R&D Spending (EUR)* |
190m 100m >10%
EBITDA(EUR)* Net Result (EUR)* Organic growth*
Member of SDAX®
Member of TecDAX®
HQ in Austria; listed in Germany
Focused on large and growing B2B-IoT market
Number of connected IoT devices grows globally by 30%
Fully integrated technology platform
Integrated (SW+HW) solutions
Driven by customers success, blue-chip customers
>4,500 customers in total
Leading provider of disruptive IoT technologies
Real time 5G/6G connectivity, susietec® toolset, KontronOS, Kontron Grid
*Management estimates for 2024 and organic growth mid-term guidance.
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At the heart of many disruptive industries
High-speed trains | Autonomous Driving |
In-flight communication systems | Smart Factory | Smart Solar & GreenTec |
Footer | 3 |
The IoT Market
Key MetricsFocus Industries
64 billion | $ 254 billion | |
connected IoT devices by | Industrial IoT revenues in FY23; | |
2025 worldwide (from 29 | expected 13% CAGR (2024-2028) | |
billion in 2022) | ||
Smart Factories | Railways | |
31% growth | 21% adoption | |
machines connected | of 5G across mobile internet | |
to the Internet by 2025 | connections by 2025 |
4bn
75bn
20bn
Green/Clean Energy | Aerospace |
2016 2020 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 | 4 |
KPIs FY 2023
Revenue | EBITDA | Operating Net Income after NCI* |
(in EUR m) | (in EUR m) | (in EUR m) |
+ 15.3% | + 15.1% | 87 Cent | EPS + 41.4% | 123 Cent |
1 225,9 | 126,0 | + 35.7% | ||
75,3 | ||||
1 063,7 | 109,5 | |||
55,5 | ||||
FY 2022 | FY 2023 | FY 2022 | FY 2023 | FY 2022 | FY 2023 |
* 2022 adj for DCO/sold IT, reported EBITDA EUR 70.0 Mio. | * 2022 adj for DCO/sold IT, reported Net Income EUR -12.3 Mio. | |
Gross Margin | Order Entry vs. Revenues | Operating Cash Flow |
(in EUR m) | (in EUR m) | (in EUR m) |
+ 26.2% | Book-to-bill: 1.18 | + 163% |
466,2 | 1 452,6 | 116,9 |
1 225,9 | ||
369,5 | ||
44,4 | ||
FY 2022 | FY 2023 | bill | book | FY 2022 | FY 2023 |
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KPIs Q1 2024
Revenue | EBITDA | Net Result after NCI* |
(in EUR m) | (in EUR m) | (in EUR m) |
+ 35.9% | + 19.6% (adj 32.4%) | 26 Cent | EPS stable | 26 Cent | ||
356,1 | ||||||
262,0 | 35,4 | 39,2 | 16,6 | 16,3 | ||
29,6 | ||||||
Q1 2023 | Q1 | 2024 | Q1 2023 | Q1 2024 | | Q1 2024 adj. | Q1 2023 | Q1 2024 |
Adjustment of Q1 23 revenues due to changed assessment of principal/agent status | * Q1 2024 burdened by EUR 3.8m M&A and one time effects |
Gross Margin | Order Entry vs. Revenues | Operating Cash Flow | |||
(in EUR m) | (in EUR m) | (in EUR m) | |||
+ 37.1% | Book-to-bill: 1.04 | adj +358% |
356,1 | 371,4 | |
147,2 | 23,8 | |
107,3 | 5,2 | |
-10,7 | ||
Q1 2023 | Q1 2024 | bill | book | Q1 2023 | Q1 2024 | Q1 2024 adj. |
* adjusted for the reduced factoring and a deferral effect for 2023 |
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Kontron Group Balance Sheet
Equity and liquidity very strong
in m EUR | 3/31/2024 | 12/31/2023 | in m EUR | 3/31/2024 | 12/31/2023 |
NON-CURRENT ASSETS | 716.2 | 492.5 | EQUITY | 670.2 | 604.0 |
Tangible assets | 224.5 | 110.4 | Accumulated results | 479.1 | 462.8 |
Intangible assets | 146.0 | 102.4 | as of treasury shares | -44.7 | -43.0 |
Goodwill | 273.7 | 216.6 | NON-CURRENT LIABILITIES | 388.4 | 136.1 |
Other assets | 72.0 | 63.0 | Long-term loans and borrowings | 233.5 | 60.1 |
CURRENT ASSETS | 1,168.1 | 878.2 | Other liabilities and provisions | 154.9 | 76.0 |
Inventories | 443.8 | 229.1 | CURRENT LIABILITIES | 825.8 | 630.6 |
Trade receivables | 239.0 | 213.6 | Trade payables | 325.0 | 273.1 |
Contract assets from customers | 53.3 | 38.1 | Contract liabilities from customers | 77.5 | 69.6 |
Cash and cash equivalents | 356.2 | 332.2 | Short-term loans and borrowings | 204.0 | 150.9 |
Other receivables and prepayments | 75.8 | 65.2 | Other liabilities and provisions | 219.2 | 137.0 |
Assets classified as held for sales | 0.0 | 0.0 | Liabilities classified as held for sale | 0.0 | 0.0 |
Total assets | 1,884.4 | 1,370.7 | Total liabilities & equity | 1,884.4 | 1,370.7 |
Equity ratio | 35.6% | 44.1% | |||
Total net cash/(net debt)* | -81.4 | 121.2 | |||
Working capital** | 357.8 | 169.6 |
Still EUR 356m cash after paying Katek price
* Definition Net Cash: Cash and cash equivalents less non-current and current financing liabilities (excl. liabilities from leasing according to IFRS 16) | 7 |
** Definition Working Capital: Inventories plus trade receivables less trade payables (excl. IFRS 15 contract assets and liabilities) | |
Additional disclosures
Q1 2024
Katek share in Q1 results | Kontron | Katek share | |
In EUR m | Q1/24 | Q1/24 (March) | |
Reported revenues | 356.1 | 54.1 | |
Gross margin (in %) | 41.3% | 35.8% | |
EBITDA (adjusted) | 39.2 | 5.3 | |
Net result | 16.3 | 0.6 | |
Inventory | 443.8 | 211.0 | |
Cash | 356.2 | 28.6 | |
Financing debt | -437.6 | -105.2 | |
Order backlog | 1,842 | 140 | |
Design wins | 5,347 | 1,346 | |
2024 we expect EUR 13m net profit from Katek
Organic growth Q1 - 2024 | Q1-2024 | Q1-2023 | |||||
Reported revenues | 356,1 | 262,0 | |||||
Acquisitions in Q1-2024 | -88,1 | ||||||
Divestments of Q1-2023 | -18,7 | ||||||
Organic growth = 10,2% | 268,0 | 243,3 | |||||
in EUR m | Result | EBITDA - extraordinary Effects | |||||
EBITDA (reported) | 35.4 | ||||||
Adjustment | 3.8 | M&A and one-time effects | |||||
EBITDA (adjusted) | 39.2 | ||||||
in EUR m | Result | Cash flow - extraordinary Effects | |||||
Op Cashflow(reported) | -10.7 | ||||||
Adjustment | 18.9 | Year-end turn effect 2023 (see EC 2023) | |||||
Reduction Factoring | 15.6 | ||||||
Op. Cashflow (adjusted) | 23.8 | ||||||
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Strong cash generation
Liquidity further expanded
Status liquidity
- EUR 356m cash and cash equivalents
- EUR 19m ST receivables from Vinci (in Q2)
- EUR 130m available lines
-
EUR 90m additional lines amidst Katek integration
Liquidity amounts to EUR 600m but only to be used cautiously in strengthening of business
Shareholder participation
- Rule: Spend 50% of net earnings in Dividend or SBB
-
EUR 31m: Proposed dividend
2024 est. proposed dividend of 50 EUR Cent/share in May (+43% vs 2022)
2023: special dividend of EUR 1/share due to the sale of
the IT service business; 2022: EUR 0.35, 2021: EUR 0.30
Cash generation per quarter Q1 (operating Cash Flow)
(In EUR m)
5,2 | 23,8* | ||||||||||
*adjusted | |||||||||||
-27 | |||||||||||
-60 | |||||||||||
Q1/21 | Q1/22 | Q1/23 | Q1/24 |
Cash generation per year (operating Cash Flow)
123 | ||
95 | ||
44 | ||
2021 | 2022 | 2023 |
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Kontron: Major KPIs
Strong operational development
in EUR m | Q1 2024 | 2025 | 2028 | Comment |
Revenues | 356.1 | 2,400 | Organic CAGAR 10% | Growth of industry |
Gross Margin (in %) | 41.3% | 41.0% | 45% | Strong gross margin result of the strategic |
realignment towards IoT | ||||
EBITDA | 35.4 | 12% | 15% | Q1 2004 includes 3.8m M&A costs and one-off |
effects | ||||
Net profit | 16.2 | 140 million | 10% Net Profit | Q1 2024 Includes M&A costs and one-off |
effects | ||||
Equity ratio | 35.6% | +40% | Stable | Back to 40% in 2025 |
Working Capital | 357.8 | 169.6 (YE23) | 10% Revenues | Increase in inventories from Katek |
Operating CF (adj.) | 23.8 | 75% Conversion | Stable | Adjusted for factoring and year-end turn effect |
2023 | ||||
Net cash(+)/debt(-) | -81.4 | 0 | Net Cash | Target: back to net cash in 2025 |
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Disclaimer
Kontron AG published this content on 15 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2024 08:07:00 UTC.
