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Q3/2016
October 27, 2016
- Dr. Thomas Riegler - CFO
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KONTRON RESULTS PRESENTATION Q3/2016 October 27, 2016 Dr. Thomas - - PowerPoint PPT Presentation
KONTRON RESULTS PRESENTATION Q3/2016 October 27, 2016 Dr. Thomas - - PowerPoint PPT Presentation
KONTRON RESULTS PRESENTATION Q3/2016 October 27, 2016 Dr. Thomas Riegler - CFO 01 INTRODUCTION Q3/2016 The financial result in Q3/2016 remained weak, as expected. Restructuring program will commence. Strategic direction of the
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Revenue EBIT (rep.) Gross Margin (rep.) OPEX*2
113.4 89.5
- 23.9
(-21.1%) 26.7%
- 6.1 PPT
20.6%
In € m and % / rounded figures / *excl. OTEs, restructuring costs / *2 OPEX includes One time effects
02 FINANCIAL OVERVIEW
Q3/2016
- 10.2
3.5
- 6.7
26.2 +1.7 (+6.5 %) 27.9
Gross Profit (rep.)
- 11.8
(-38.9%) 18.5 30.3 Q3/2015 Q3/2016
Order Intake
- 32.2
(-29.0%) 79.0 111.2
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EBIT (adj.)*
5.1
- 6.7
- 11.8
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03 KEY FINANCIALS FOR GLOBAL BUSINESS UNITS
Q3/2016
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Order Intake Q3/2016 Q3/2015 Δ Industrial 43.0 45.2
- 4.9%
Communication 20.5 40.3
- 49.1%
Avionics/ Transportation/ Defense 15.5 25.7
- 39.7%
Total 79.0 111.2
- 29.0%
Revenues Q3/2016 Q3/2015 Δ Industrial 45.5 54.3
- 16.2%
Communication 23.1 27.0
- 14.4%
Avionics/ Transportation/ Defense 20.9 32.1
- 34.9%
Total 89.5 113.4
- 21.1%
In € m and % / rounded figures
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04 PROFIT & LOSS STATEMENT
Q3/2016
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Q3/2016 Q3/2015 Δ Order Intake 79.0 111.2
- 29.0%
Order Backlog 261.7 320.7
- 18.4%
Revenues 89.5 113.4
- 21.1%
Gross Profit 18.5 30.3
- 38.9%
in % 20.6 26.7
- 6.1 PPT
OPEX 27.9 26.2 +6.5% EBIT (adjusted)
- 6.7
5.1
- 11.8
in %
- 7.5
4.5
- 12.0 PPT
OTE/ Restructuring costs
- 0.1
1.6
- 1.7
EBIT (reported)
- 6.7
3.5
- 10.2
in %
- 7.5
3.1
- 10.6 PPT
Net Income (reported)
- 7.4
2.1
- 9.5
In € m and % / rounded figures
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05 CASH FLOW STATEMENT
Q3/2016
In € m Q3/2016 Q3/2015 Δ
Cash Flow from operating activities 7.5
- 1.2
+8.7 Cash Flow from investing activities
- 7.0
- 6.4
- 0.6
Net cash (Net debt) 9.7 (40.0) +49.7
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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%)
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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
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07 SIMPLIFIED ECT VALUE CHAIN
OPPORTUNITIES
New business opportunities and market potential going forward Kontron will be able to cover a larger part of the value chain in the future
Main Processes ECT Providers Contract Manufacturers OEMs Systems Integrators
Design Validation and
Verification
Assembly Design of end
device
Assembly of
components & subsystems
Integration
services for
- perators (e.g.,
production lines)
Integrated circuits
design
Chip production
Basic Component Suppliers Software Providers
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Kontron has several key strengths ...
08 KONTRON'S CAPABILITIES
NEED TO EXPAND ON CAPABILITIES
Ability to customize Reputation of quality & reliability One of the largest R&D departments in the industry High barriers to entry Vertical-specific expertise & brand Established client relationships & international presence Economies of scale
R&D Market access Size ... that will help to differentiate and therefore need to be focused:
Market-oriented technology roadmap Beside the strong OEM relationships, further strengthen Tier 2 clients Focus on platform strategy to use economies of scale
Standard product platforms
Product portfolio
Customization projects at a premium Expand channel activities Enhance modular building blocks & application readiness
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09 GENERAL UPDATES
Q3/2016
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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
- n July 25, 2016, will continue in his position.
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The guidance for 2016 was withdrawn on July 15, 2016. 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.
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10 FISCAL YEAR 2016
OUTLOOK
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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: www.kontron.com. 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.
DISCLAIMER
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