TKH GROUP NV
GENERAL INVESTOR PRESENTATION
MARCH 2024
IMPORTANT INFORMATION - DISCLAIMER
Cautionary note regarding forward looking statements
Statements included in this presentation that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are forward-looking statements. These statements are only predictions and are not guarantees. Actual events or the results of our operations could differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements are typically identified by the use of terms such as "may", "will", "should", "expect", "could", "intend", "plan", "anticipate", "estimate", "believe", "continue", "predict", "potential" or the negative of such terms and other comparable terminology.
The forward-looking statements are based upon our current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements.
2 TKH GENERAL INVESTOR PRESENTATION - MARCH 2024
Key Messages
DELIVERING ON OUTLOOK
- EBITA of € 237.0 million
- Smart Manufacturing systems performed exceptionally strong in Q4 2023
- Continued destocking and other headwinds within Smart Vision and Smart Connectivity systems
- Substantial increase in Added Value - Reflection of TKH's pricing power and strategic position
- ROS Q4 - 14.3%
- Good progress made in realization of ESG targets including improved ratings
- 70% of turnover linked to SDGs
-
200M STRATEGIC INVESTMENT
PROGRAM NEARING COMPLETION
-
200M STRATEGIC INVESTMENT
- Production of type-testinter-array cables started in new plant in Eemshaven, to be operational during course of Q2 2024
- Expansion of medium and high voltage cable capacity in Lochem operational in phases from Q3 2023
- New fibre optic and specialty cable plants in Poland operational, Tire Building systems expansion in Poland fully operational
- 200 additional personnel for roll-out of strategic investment program
PROGRESSING ON OUR STRATEGIC
POSITIONING
- Investments into AI, with set-up of hub in Amsterdam, and into digital transformation
- Machine Vision one-stop-shop and solutions
- Continuing high order intake tire building - UNIXX system high interest confirmed
- High voltage supplier of TenneT - Framework agreement inter-array Vattenfall - Additional inter-array orders in the pipeline
- Two major divestments, total one-off net profit of € 54.8 million - Acceleration of divestments announced towards high end bandwidth
- Acquisition of machine vision software company Euresys
Returned € 117.6m cash to shareholders: € 67.6m in dividends and € 50.0m in share buybacks
3 TKH GENERAL INVESTOR PRESENTATION - MARCH 2024
Q4 2023: Strong Performance Smart Manufacturing
Highlights Q4 2023 | |||||||
Turnover € 441.4m | EBITA* € 62.9m | ROS* 14.3% | |||||
Q4 2022: € 465.7m | Q4 2022*: € 64.0m | Q4 2022: 13.7% | |||||
+ 1.2% organically ** | + 6.7% organically** | ||||||
- EBITA & ROS excluding one-off income and expenses (one-off expenses in Q4 2023 amounted to € 2.8 million, Q4 2022: one-off income of € 1.0 million)
- Adjusted for acquisitions, divestments, and currency effects
4 TKH GENERAL INVESTOR PRESENTATION - MARCH 2024
TKH delivers well on Outlook
Highlights FY 2023 | ||||||||||
Turnover € 1,847.5m | EBITA* € 237.0m | ROS* 12.8% | Adjusted net profit** | |||||||
2022: € 1,816.6m | 2022: € 234.8m | 2022: 12.9% | € 130.5m | |||||||
+ 3.2% organically*** | + 3.0% organically*** | 2022: € 143.6m | ||||||||
- 9.1% | ||||||||||
ROCE 19.8% | Order book € 970.1m | Innovations 16.1% | Net debt € 469.2m |
2022: 23.2% | Dec 31, 2022: € 971.9m | 2022: 20.6% | Dec 31, 2022: € 307.2m |
As percentage of turnover
- EBITA & ROS excluding one-off income and expenses (one-off net expenses in 2023 amounted to € 2.0 million, 2022: one-off income of € 10.4 million)
- Net profit before amortization of intangible non-current assets related to acquisitions (after tax) and one-off income and expenses attributable to shareholders. Amortization of intangible non- current assets related to acquisitions (after taxes) in 2023 of € 12.3 million (2022: € 12.6 million)
- Adjusted for acquisitions, divestments, and currency effects
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Added Value increased across all segments
SMART VISION
- 1.8%*
SMART MANUFACTURING
+ 17.1%* |
SMART CONNECTIVITY
- 1.5%*
TOTAL |
+ 3.2%* |
58.5% | 58.9% | ||
50.5% |
49.9% |
37.8%
41.8%
AV | 47.2% | 49.8% |
& | ||
TURNOVER & AV
EBITA** & ROS
499.7 500.5
2 0 2 22 0 2 3
- 12.1%*
19.1%
17.2%
95.5 85.9
2 0 2 22 0 2 3
573.6 | ||||||||
491.2 | ||||||||
2 0 2 2 | 2 0 2 3 | |||||||
+ 31.8%* | ||||||||
14.1% | 15.8% | |||||||
69.1 | 90.6 | |||||||
2 0 2 2 | 2 0 2 3 |
848.6 800.5
2 0 2 22 0 2 3
- 0.1%*
10.3% 10.1%
87,3 | 81,1 |
2 0 2 2 | 2 0 2 3 |
TURNOVER | 1.816,6 | 1.847,5 |
2 0 2 2 | 2 0 2 3 | |
+ 3.0%* | ||
& ROS | 12.9% | 12.8% |
EBITA** | 234,8 | 237,0 |
2 0 2 2 | 2 0 2 3 |
HIGHLIGHTS
- Turnover Security Vision achieved growth during the year
- Machine Vision experienced large impact from destocking and weaker market demand
- Cost levels and capacity kept at higher turnover levels
- Exceptionally strong Q4 - easing of supply chain constraints led to completion and delivery of large inventory of incomplete machines
- Orderbook remains strong
- Order for UNIXX system booked in Q1 2024
- After strong H1, onshore cable impacted by Dutch utility companies' destocking
- The offshore cable capacity underutilized in H2 due to order postponement
- Digitalization impacted by doubling of the EU anti-dumping duties in August
- Transition of fibre cable production from China to new plant in Poland temporarily impacted output and cost levels
• Added value expansion due to price | |
HIGHLIGHTS | increase to cover cost inflation, change in |
product mix and the impact of divestments. | |
• ROS impacted by supply chain issues in H1 | |
Start-up expenses & new hires strategic | |
investment program | |
• Underutilization of capacity due to | |
destocking in Smart Vision and Smart | |
Connectivity |
6
- Adjusted for acquisitions, divestments and currency effects
- EBITA excluding one-off income and expenses
Content
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Profile
Accelerate 2025 Strategy
Capital Allocation & Strategic Priorities
Track Record
Reporting Segments
Highlights and Financial Performance FY 2023
Outlook
7 TKH GENERAL INVESTOR PRESENTATION - MARCH 2024
PROFILE
Checl numbers
TKH - Technology leader in high growth markets
SMART Technologies built on innovation
Together with our customers, we develop innovative technologies that make the world more efficient and more sustainable
SMART VISION SYSTEMS
TKH WORLDWIDE
HEADCOUNT
7,000 FTEs of which 750 in R&D and software development
Entrepreneurial culture
TURNOVER
2023 € 1,848m (2022: € 1,817m)
16% turnover from innovations
ESG
70% of turnover linked to SDGs Frontrunner ambition
CUSTOMER AND TECHNOLOGY FOCUSSED
>1,400 patents
>30% technology proposition is software Market leadership in majority of activities
SMART MANUFACTURING SYSTEMS
NORTH AMERICA
- 240m turnover
EUROPE (OTHER)
- 717m turnover
OTHER
- 84m turnover
SMART CONNECTIVITY SYSTEMS
THE NETHERLANDS
€ 454m turnover
ASIA
€ 353m turnover
9 TKH GENERAL INVESTOR PRESENTATION - MARCH 2024
Smart Technologies
Specialized in the development of innovative, client-centric systems that drive success in automation, digitalization, and electrification
By integrating hardware, software, and customer-focused insight, our smart technologies provide unique answers to client challenges
Creating one-stop-shop,plug-and-play innovations for Smart
Vision, Smart Manufacturing and Smart Connectivity technology
Making the world more efficient and more sustainable
10 TKH GENERAL INVESTOR PRESENTATION - MARCH 2024
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Disclaimer
TKH Group NV published this content on 05 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 09:08:04 UTC.