Kontron (SANT) Investor Presentation summary

Strategic positioning and business overview

• Leading provider of smart industrial IoT solutions with a fully integrated technology platform, serving over 4,500 customers globally and connecting up to 1 million edge devices across industries.

• Focused on large, growing B2B IoT market with 30% global device growth, leveraging real-time 5G/6G, proprietary software (KontronOS, susietec), and strong blue-chip customer base.

• Headquarters in Austria, listed in Germany, and member of SDAX and TecDAX indices.

• Operates through three main segments: Europe, Global, and Software + Solutions, with targeted financials for each segment by 2025.

• Employs 7,200 people with over 3,200 experienced engineers, emphasizing R&D and innovation partnerships (e.g., Qualcomm, Foxconn).

Financial performance and key metrics

• Q1 2025 revenues rose 8.2% to €385m, EBITDA jumped 35.6% to €48m, and gross margin improved to 44.0%.

• Net result after NCI increased 23.8% to €20m, with EPS up to 33 cents.

• Operating cash flow turned positive at €2.8m, and equity ratio strengthened from 35.8% to 38.9%.

• Backlog reached €2.2bn, exceeding annual revenue plan, and book-to-bill ratio stood at 1.28.

• Organic growth impacted by acquisitions and divestments, with organic gross profit growth at 3.3% in Q1 2025.

Segment performance and growth drivers

• Europe segment represents 51% of group revenues, driven by smart factories, 5G design wins, and reshoring; EBITDA margin at 8.3%.

• Global segment (14% of revenues) returned to 9% EBITDA margin, with growth in North America (defense, aerospace) and Asia (avionics, high-speed trains).

• Software + Solutions is the fastest-growing and most profitable segment (20% EBITDA margin), contributing 43% of group EBITDA and over 50% recurring revenues.

• Major design wins in transportation, defense, and automotive, with significant contracts in GSM-R, satellite communication, and smart wallboxes.

• GreenTec segment ramping up with major orders for IoT chargers and focus on sustainable energy solutions.