Slides
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Q3 2025 Results Novemer 5th 2025
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Kontron: Q3 Results & Company Highlights Results Highlights 2 Company Highlights › EBITDA on track EUR 47.6m (Q3 2025) similar to Q2 operationally › Leap in operating Cashflow EUR 33.5m (Q3/25) vs EUR 19.4m (Q3/24) driven by inventory reduction › Increased Backlog Book-to-bill ratio of 1.41 record Backlog of EUR 2.4bn › Equity Ratio >40% Improved to 40.6% already after Q3 › Ongoing portfolio streamlining Reduction of low margin EMS/IT/COM biz, strengthen Software + Solutions in IoT › Strong growth in high-margin Software + Solutions Book-to-bill 1.58 and 19.5% organic revenue growth driven by Defense and Transportation › Leader in disruptive technology CRA compatible IoT solutions powered by KOS and AIQ3-25
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KPIs Q3 2025 3 Net Result after NCI (in EUR m) 40 Cent 36 CentEPS – 10.0% 24 22 Q3 2024 | Q3 2025 428 401 Q3 2024 | Q3 2025 Revenues (in EUR m) - 6.3% 401 567 bill | book Book-to-bill: 1.41 Order Entry vs. Revenues (in EUR m) 59 48 Q3 2024 | Q3 2025 EBITDA (in EUR m) -19.9% Operating Cash Flow (in EUR m) 191 174 Q3 2024 | Q3 2025 - 9.0% Gross Profit (in EUR m) + 71.1% 19.6 33.5 Q3 2024 | Q3 2025
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KPIs 9M 2025 4 Net Result after NCI* (in EUR m) 101 Cent 180 CentEPS + 78.5% 62 111 9M 2024 | 9M 2025 1,208 1,182 9M 2024 | 9M 2025 Revenues (in EUR m) - 2.1% 1,182 1,548 bill | book Book-to-bill: 1.31 Order Entry vs. Revenues (in EUR m) 141 194 9M 2024 | 9M 2025 EBITDA* (in EUR m) + 37.0% Operating Cash Flow (in EUR m) 519 493 9M 2024 | 9M 2025 - 5.0% Gross Profit** (in EUR m) + 1,678% 2.8 49.7 9M 2024 | 9M 2025 * Including one-off effects from portfolio streamlining of preliminary ~EUR 46m in EBITDA also in Net Result. ** Burdened by inventory deconsolidation effects.
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Kontron Group Balance Sheet Q3 2025 * Definition Net Debt: Cash and cash equivalents less non-current and current financing liabilities (excl. liabilities from leasing according to IFRS 16) ** Definition Working Capital: Inventories plus trade receivables less trade payables (excl. IFRS 15 contract assets and liabilities) 5 Equity and liquidity very strong in EUR m 30.09.2025 31.12.2024 in EUR m 30.09.2025 31.12.2024 NON-CURRENT ASSETS 845.1 744.8 EQUITY 714.8 652.3 Tangible assets 224.5 238.1 Accumulated results 596.6 522.7 Intangible assets 161.3 157.3 as of treasury shares -49.3 -50.1 Goodwill 261.3 262.6 NON-CURRENT LIABILITIES 375.6 452.9 Other assets 197.9 86.8 Long-term loans and borrowings 234.6 305.8 CURRENT ASSETS 916.7 1,078.9 Other liabilities and provisions 141.0 147.2 Inventories 329.6 373.3 CURRENT LIABILITIES 671.3 718.5 Trade receivables 207.7 249.6 Trade payables 240.8 272.4 Contract assets from customers 98.7 71.6 Contract liabilities from customers 58.6 91.2 Cash and cash equivalents 187.6 315.6 Short-term loans and borrowings 181.5 173.0 Other receivables and prepayments 93.1 68.8 Other liabilities and provisions 190.4 181.9 Total assets 1,761.8 1,823.7 Total liabilities & equity 1,761.8 1,823.7 Equity ratio 40.6% 35.8% Total net debt* -228.6 -163.1 Working capital** 296.6 350.6 Improvement in Equity ratio from 35.8% to 40.6% Progress in Working Capital / Net Debt improved in Q3 by EUR 26m
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Additional disclosures Values in EUR m unless indicated otherwise 6 Organic Revenues Growth 9M/2025 Reported 3rd party revenues 1,181 Impact Katek/EMS 59 Discontinuation COM + IT biz 51 ORGANIC GROWTH 6.9% Q3 2025 Status liquidity › EUR 188m cash on hand › EUR 220m available lines Q2 COM Special Impact EBITDA (in EUR m) EBITDA reported 194 One-time income 95 One-time costs -49 One-time impact 46 Booked tax 5 Impact split in segments 42m Europe 12m Global -8m Solutions Operating Cashflow 9M/2025 Reported 49.7 Reduced Factoring 15.7 Adjusted operating CF 65.4
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Portfolio streamlining Values in EUR m unless indicated otherwise 7 In EUR m 2022 2023 2024 2025 YTD 2026e Discontinued revenues - 390 - 60 - 110 - 75 Related gross margin 30% 15% 25% 33% Impact on gross margin - 117 - 9 - 27 - 25 Reported gross margin 370 466 694 493 Group gross margin 34.7% 38.0% 41.2% 41.7% >42.0% Clean-up portfolio Divest IT biz to Axians Discontinue low margin biz in IT + EMS Divest COM biz + discontinue low margin biz IT + EMS biz Plan to divest rest of IT biz › Totally EUR 635 million of low margin biz divested/discontinued › Proceeds used for acqusitions + shareholders › Profits still growing based on increased gross margin
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in EUR m 9M 2023 9M 2024 9M 2025 Comment Revenues 834 1,207 1,182 EUR 250m of discontinued biz: COM (EUR 100m), EMS (EUR 80m) and IT (EUR 70m) Gross Margin (in %) 39.6% 43.0% 41.7% Price pressure EMS -> move to ODM in progress, in Q3 already 43.4% EBITDA 96 141 194 Strong improvement over last years – H1/2025 one time effect of 46m Net profit 55 62 111 Operationally strong, tax on COM deconsolidation not final yet Equity ratio 46.2% 35.4% 40.6% Target for 2025 already achieved - to be further improved in Q4 2025 Working Capital 189 418 297 Shrinking since HY 2024 – to be continued Operating CF 34.1 2.8 49.7 Would be even EUR 15.7m higher if adjusted by reduced factoring in 2025 FTE 4,740 7,392 6,826 Thereof 3,000 experienced engineers Net cash/debt 73 -218 -229 Improvement expected in Q4 25 – will go further down and stay below <1x EBITDA Kontron: Major KPIs 8 Strong operational development continued
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Massive design win volume increases to EUR 7.8bn 9 2,353 2,970 3,407 4,100 6,643 7,802 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 9M 2025 Design Wins (in EUR m) 804 1,160 1,460 1,686 2,078 2,444 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 9M 2025 Backlog (in EUR m) Backlog rose to EUR 2.4bn driven by great order intake
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Adjust product portfolio to higher margin products, phase out low margin biz 58.5 91.9 677 601 756 Europe: ongoing portfolio improvements 9M 2024 | 9M 2025**9M 2024 | 9M 2025 | orders 9/25 Revenue & order entry EBITDA* 10 About the segment & strategy › Adj. organic growth 9M 2025: 3.5% › Adj. operating EBITDA margin 8.3% › Broad base of IoT products/technologies for various industries › Represents 51% of group revenues in 9M/25 › Long-term healthy customer relations over decades › Strong pan European cost-efficient engineering base › Install KontronOS on all devices Comments on Q3 2025 › Adj. for Divest COM biz + discontinue low margin biz IT + EMS biz › Qualcomm cooperation on 5G and ARM started › Defense biz with “Bundeswehr” & “Bundesdruckerei” is ramping up › Katek ODM biz recovered slightly – several design wins - phase out low GM biz * EBITDA before Intercompany HQ fees (part of Europe Segment) ** Impacted by deconsolidation of COM business Reduce low margin biz
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Tailwind by USA tariffs: Kontron is local in R&D and productions pays off 12.4 30.1172 162 129 Global: growth potential * EBITDA before Intercompany HQ fees (part of Europe Segment) ** Impacted by deconsolidation of COM business 9M 2024 | 9M 2025**9M 2024 | 9M 2025 | orders 9/25 Revenue & order entry EBITDA* 11 About the segment & strategy › Adj. organic Growth 9M 2025: 0.1% › Adj. operating EBITDA margin 11.1% › Sales/Support channel for the complete Kontron technology portfolio › Represents 14% of group revenues - Expand to 25% in the next 4 years › ITAR approved competence center for Defense and Aerospace in the USA › Strengthen Software + Solutions biz in progress Q3 2025 in North America › Defense & Aerospace market very strong and profitable › Positive impact for tariffs (factories in CAD and USA) expected in 2026 › Several huge projects > EUR 100m Q3 2025 in Asia › Expand cooperation with Foxconn in technology › Headwind by “buy Chinese” strategy › High potential in avionics and high-speed trains (Air China, CR) Sales channel for legacy and focus business
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Most profitable segment with strong growth, 2025 EBITDA margin ~ 20% despite solar weakness 70.4 71.6 358 419 663 Software + Solutions: fast growing – our focus * EBITDA before Intercompany HQ fees (part of Europe Segment) 9M 2024 | 9M 20259M 2024 | 9M 2025 | orders 9/25 Revenue & order entry EBITDA* 12 Segment trend › Organic Growth 9M 2025: 19.5% › Adj. EBITDA margin 19.0% › Offers unique IoT technology for special vertical markets (low competition) › Represents 35% of group revenues › More than 50% of recurring revenues and SLAs (up to 15 years) › Significant Software share -> GM 60%, Technology leader CRA compatible AI supported KontronOS › KontronOS, AI-Shield and KontronGrid to become the de facto standard with 30m licenses by 2028 › Spread in avionics, WBX, ARM-based, target install on all IoT devices Transportation (high-speed trains) › EUR >300m in new orders YTD, only supplier for FRMCS, market leader in Europe Defense and aerospace › ~ 20% of EBITDA, very significant design wins New segment GreenTec › 2024 major orders in but currently delayed for IoT chargers (EUR 400m): ramp-up slow › solar biz back to growth in 2026 Strongest EBITDA contributor, just started in 2020
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Even mix of several core markets – strong particularly in defense + railways Vertical Market Split 13 Transportation / high-speed trains › Very strong position in dynamic market in Europe with new technological requirements due to new standard (FRMCS) ahead Automation › Driven by nearshoring production to Europe, which needs highest automation level Aerospace & Defense › Shift towards digital data transmission for most NATO armies – Kontron well positioned with highest security and encryption standards Medical › Driven by aging population in Europe Communications › Leading position for fiber switches in Europe Automotive › Shift towards 5G NADs will start in H2/2026 for autonomous driving, will boos H2/2026 Renewable energy › Connected intelligent chargers and solar inverters, CRA compatible software We are independent from any specific end-market Transportation Automation Aero & Defense Medical Communications IoT Software (stand alone) Automotive Renewables Rest (mainly EMS/ODM)
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14 FRMCS VPX/Defense Cybersecurity/CRA Automotive NADs Market Data connectivity for high-speed railways Global increase in defense budgets CRA to become mandatory for all mission-critical appliciations Connectivity for autonomous cars Position of Kontron > 50% market share in EU Leading ITAR Technology supplier for encrypted defense communication First adaptor to CRA 1 out of 2 „non-Chinese supplier“ Competitors Nokia, Huawei Mercury, Curtiss-Wright none Chinese players, LG Technology USP Only supplier for FRMCS edge devices, new standard, increase data speed 100x VPX secured/encrypted 6.25 Gb/s data connectivity, new VNX+ standard Cybersecurity supported by AI Ultrafast (5 Gb/s) 5G modules in coop with Qualcomm, CRA compatible Current biz EUR 260m biz @ 25% EBITDA EUR 200m biz @ 20% EBITDA 4m devices EUR 100m biz @ 10% EBITDA Potential biz in 5 years > EUR 500m > EUR 400m 80m devices, > EUR 500m subscription fees > EUR 500m Disruptive Technologies to drive our future growth
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History and 2025 forecast 15 Continuous strong organic growth in profitability expected 0 50 100 150 200 250 0 500 1,000 1,500 2,000 Revenue (left scale) EBITDA (right scale) divest IT (in EUR million) Results 2023 Results 2024 Guidance 2025 Revenue 1,226 1,685 1,700 EBITDA (op.) 126 192 > 220 0 1,500 3,000 4,500 6,000 7,500 9,000 2020 2021 2022 2023 2024 2025 9M Backlog Design Wins divest IT
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APPENDIX
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The Kontron Share 17 Price target clearly above current share price Shareholder Structure 1 additional analyst will take on coverage of Kontron Hauck & Aufhäuser Buy: EUR 37.00 Jefferies Buy: EUR 27.00 ERSTE Group Buy: EUR 30.90 Kepler Cheuvreux Buy: EUR 30.00 mwb research Buy: EUR 36.00 ODDO BHF Buy: EUR 31.00 Pareto Securities Buy: EUR 30.00 Warburg Buy: EUR 28.40 Bankhaus Metzler Buy: EUR 32.50 Average Target Share Price EUR 31.42 Shareholder base Ennoconn - 27.5% Kontron Management - 4.9% Naneva B.V (PPF Holdings B.V.) - 3.9% Amiral Gestion - 2.9% Other Freefloat* - 60.8% Share ID as of May 2025 * incl. 3.3% Treasury Shares ** Latest Analysts’ recommendation change as of 31.07.2025 Shareholder Structure
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› Double Materiality Analysis (CSRD requirement) was completed – 10 material topics identified › Education Kontron Sustainable Leadership Academy 2024 (focus on female employees) Data Security Training Focus › Employee Survey – conducted among approx. 4,700 employees Update on ESG: Achievements 18 Recognition of Kontron’s ESG efforts › MSCI: A (previously BBB) › EcoVadis: 50 (rated above industry average) › Sustainalytics: 17.9 (low risk) › Moody’s: 38 (improvement by 4 points since 2022) › ISS ESG: C (previously C-)
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Update on ESG: Outlook & Targets 19 › Corporate Carbon Footprint (Full disclosure on Scope I, II, III) › Climate Risk Analysis › EU Taxonomy alignment › CSRD compliance – Sustainability Statement 2024 (ESRS) based on Double Materiality Analysis › Kontron’s Green Products – communicating our products better (product carbon footprint) › Kontron’s Green Products – Connecting sustainable Energy and ESG for higher performance › GreenTec – Upgrading GreenTec with IoT › CSDDD preparation › Compliance targets – update of policies (Supplier Code of Conduct, Code of Conduct, etc), increase in number of participants and participation rate of compliance trainings, integration of acquired companies
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Competitive landscape Source: Statista, management estimates 20 Selected competitors in Industrial IoT Revenue (in USD m) Region Curtiss Wright* 2,845 North America Kontron 2,100 Europe Advantech 2,000 Asia Beckhoff** 1,600 Europe ABB B&R 1,100 Europe Mercury* 1,000 North America Adlink 370 Asia Seco 230 Europe Eurotech 100 Europe % as of total market (USD 254bn) 4% * Also not Industrial IoT revenues ** FY22 revenues Our distinctive competitive advantages › Unmatched R&D scale: EUR 200m annual investments › Cost efficient solutions: EUR 55k p.a. average salary › Differentiated technology platform for high-value low- volume use cases › Tech Alliance with Foxconn, Ennoconn, Sharp, ARM Leap forward in 2024
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Disclaimer This document includes 'forward-looking statements'. Forward-looking statements are all statements, which do not describe facts of the past, but containing the words "believe", "estimate", "expect", "anticipate", "assume", "plan", "intend", "could", and words of similar meaning. These forward-looking statements are subject to inherent risks and uncertainties since they relate to future events and are based on current assumptions and estimates of Kontron AG, which might not occur at all or occur not as assumed. They therefore do not constitute a guarantee for the occurrence of future results or performances of Kontron AG. The actual financial position and the actual results of Kontron AG, as well as the overall economic development and the regulatory environment may differ materially from the expectations, which are assumed explicitly or implicitly in the forward-looking statements and do not comply to them. Analysts and investors, and any other person or entity that may need to take decisions or prepare or release opinions about the shares / securities issued by Kontron AG are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this document. Past performance cannot be relied upon as a guide to future performance. Except as required by applicable law, Kontron AG undertakes no obligation to revise these forward-looking statements to reflect events and circumstances after the date of this presentation, including, without limitation, changes in Kontron’s business or strategy or to reflect the occurrence of unanticipated events. The financial information and opinions contained in this document are unaudited and are subject to change without notice. This document contains summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by Kontron AG. None of the Company, its subsidiaries or affiliates or by any of its officers, directors, employees, advisors, representatives or agents shall be liable whatsoever for any loss however arising, directly or indirectly, from any use of this document its content or otherwise arising in connection with this document. This document or any of the information contained herein do not constitute, form part of or shall be construed as an offer or invitation to purchase, subscribe, sale or exchange, nor a request for an offer of purchase, subscription, sale or exchange of shares / securities of Kontron AG, or any advice or recommendation with respect to such shares / securities. This document or a part of it shall not form the basis of or relied upon in connection with any contract or commitment whatsoever. This document does not constitute an offer to purchase securities in the United States, Canada, Australia, South Africa and Japan. Securities, including the bond of Kontron AG may not be sold or offered for sale within the United States or to or for the account of / in favor of US citizens (as defined in Regulation S under the U.S. Securities Act of 1933 in the current version (the "Securities Act") unless they are registered under the regulations of the Securities Act or unless they are subject to an exemption from registration. Neither Kontron AG nor any other person intend to register the offer or a part thereof in the United States or to make a public offer of the securities in the United States.