Kontron (SANT) Investor Presentation summary

Strategic positioning and market overview

• Focuses on large, fast-growing B2B IoT markets with over 4,500 blue-chip customers and a fully integrated technology platform combining software and hardware solutions.

• Operates in high-barrier industries such as smart factories, railways, green energy, and aerospace, leveraging real-time 5G/6G connectivity and proprietary toolsets.

• Global IoT device count expected to reach 64 billion by 2025, with industrial IoT revenues projected at $254 billion and a 13% CAGR through 2028.

• Member of SDAX® and TecDAX®, headquartered in Austria and listed in Germany.

Financial performance and key metrics

• FY 2023 revenue grew 15.3% to €1,225.9m, EBITDA rose 15.1% to €126m, and net income increased 35.7% to €75.3m; gross margin up 26.2% to €466.2m.

• Q1 2024 revenue up 35.9% to €356.1m, gross margin up 37.1% to €147.2m, and adjusted operating cash flow surged to €23.8m.

• Maintains strong liquidity with €356m in cash, €600m total liquidity, and a book-to-bill ratio above 1.0.

• Equity ratio at 35.6% as of Q1 2024, with a temporary net debt position due to the Katek acquisition.

Growth drivers and business segments

• Ten divisions across three segments: Europe, Global, and Software + Solutions, with strong growth in industrial IoT, defense, and GreenTec.

• Software + Solutions is the fastest-growing and most profitable segment, generating 50% of group EBITDA in Q1 2024.

• Major design wins and backlog growth, with design win volume at €5.4bn and backlog at €1.8bn as of Q1 2024.

• North America shows solid profit growth, especially in defense, while Asia is slightly impacted by China’s slowdown.