KONTRON RESULTS PRESENTATION Q3/2016. October 27, 2016 Dr. Thomas Riegler -CFO

Transcription

1 KONTRON RESULTS PRESENTATION October 27, 2016 Dr. Thomas Riegler -CFO

2 01 INTRODUCTION The financial result in remained weak, as expected. Restructuring program will commence. Strategic direction of the company to be announced by end of FY2016. New strategic investor: S&T AG currently holds a 5.1% stake in Kontron and purchased in total 29.9% based on condition precedent. // 2

3 02 FINANCIAL OVERVIEW In m and % / rounded figures / *excl. OTEs, restructuring costs / *2 OPEX includes One time effects Q3/2015 Revenue Gross Margin (rep.) Gross Profit (rep.) (-21.1%) 26.7% 20.6% -6.1 PPT (-38.9%) OPEX* 2 Order Intake (+6.5%) (-29.0%) EBIT (adj.)* EBIT (rep.) // 3

4 03 KEY FINANCIALS FOR GLOBAL BUSINESS UNITS In m and % / rounded figures Order Intake Q3/2015 Δ Industrial % Communication % Avionics/ Transportation/ Defense % Total % Revenues Q3/2015 Δ Industrial % Communication % Avionics/ Transportation/ Defense % Total % // 4

5 04 PROFIT & LOSS STATEMENT In m and % / rounded figures Q3/2015 Δ Order Intake % Order Backlog % Revenues % Gross Profit % in % PPT OPEX % EBIT (adjusted) in % PPT OTE/ Restructuring costs EBIT (reported) in % PPT Net Income (reported) // 5

6 05 CASH FLOW STATEMENT In m Q3/2015 Δ Cash Flow from operating activities Cash Flow from investing activities Net cash (Net debt) 9.7 (40.0) // 6

7 06 ECT MARKET OVERVIEW KONTRON NEEDS TO GAIN BACK MARKET SHARE THE ECT MARKET SHOWS STEADY AND CONTINUOUS GROWTH OF ~9% PER YEAR: Modules & boards (~7%) Systems & platforms (~10%) High-end modular systems (~12%) KONTRON HAS LOST PART OF ITS MARKET SHARE: Overall estimated ECT market volume in 2016: EUR 5.1 bn Kontron still 2nd largest player in the ECT market // 7

8 07 SIMPLIFIED ECT VALUE CHAIN OPPORTUNITIES Software Providers Main Processes Basic Component Suppliers Integrated circuits design Chip production Design Validation and Verification ECT Providers Contract Manufacturers Assembly Design of end device Assembly of components & subsystems OEMs Systems Integrators Integration services for operators (e.g., production lines) New business opportunities and market potential going forward Kontron will be able to cover a larger part of the value chain in the future // 8

9 08 KONTRON'S CAPABILITIES NEED TO EXPAND ON CAPABILITIES Market access Kontron has several key strengths... Established client relationships & international presence High barriers to entry Vertical-specific expertise & brand... that will help to differentiate and therefore need to be focused: Beside the strong OEM relationships, further strengthen Tier 2 clients Expand channel activities Product portfolio Standard product platforms Enhance modular building blocks & application readiness R&D Ability to customize One of the largest R&D departments in the industry Reputation of quality & reliability Customization projects at a premium Market-oriented technology roadmap Size Economies of scale Focus on platform strategy to use economies of scale // 9

10 09 GENERAL UPDATES ENNOCONN / VOLUME TRANSFER IS ONGOING MANAGEMENT BOARD UPDATE: Frank Gumbinger has for personal reasons decided not to take up the position in the Management Board of Kontron AG. Dr. Thomas Riegler, who has been heading the Finance department at Kontron since March 2016 and who was appointed Member of the Management Board on July 25, 2016, will continue in his position. // 10

11 10 FISCAL YEAR 2016 OUTLOOK The guidance for 2016 was withdrawn on July 15, No quantitative guidance for the rest of the year. Revenues in H2 are expected to be similar to H1. Adjusted EBIT and gross margin in H2 are expected to be lower than in H1. // 11

12 DISCLAIMER This document contains certain statements that related to future business and financial performance and future events or developments in relation to Kontron AG that may constitute forward-looking statements and expectations. Such statements are based on the current expectations and certain assumptions of the management of Kontron AG, and are, therefore, subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Kontron AG s ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated synergies and the actions of government regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. Kontron AG does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation. Kontron AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. Information about risks and uncertainties affecting Kontron AG is included throughout our most recent annual and quarterly reports which are available on the website: Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. // 12

13 THANK YOU FOR YOUR ATTENTION