Slides
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[Confidential] Q2 and Half Year 2026 results AMSTERDAM, 26 AUGUST 2026
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[Confidential] 1. Key highlights 2. Strategic and operational update 3. Financial review 4. Outlook 5. Q&A Agenda Q2 AND HALF YEAR 2026 RESULTS 2
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[Confidential] 3 Certain statements contained in this presentation constitute forward-looking statements. These statements may include, without limitation, statements concerning future results of operations, the Company's share of new and existing markets, general industry and macro-economic trends and the Company's performance relative thereto and statements preceded by, followed by or including the words "believes", "expects", "anticipates", "will", "may", "could", "should", "intends", "estimate", "plan", "goal", "target", "aim" or similar expressions. These forward-looking statements rely on a number of assumptions concerning future events and are subject to uncertainties and other factors, many of which are outside the Company's control that could cause actual results to differ materially from such statements. Cautionary Note Regarding Forward Looking Statements Q2 AND HALF YEAR 2026 RESULTS
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[Confidential] 1. Key highlights
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[Confidential] Financial highlights − EBITDA margin of 18.1% in Q2 and 17.5% in HY1, on the upper end of target range − ROI increase to 26.3% (HY1 25: 13.9%) led by good EBITA and strongly reduced capital base − EUR 18.1 million capital returned to shareholders in HY1 after successful transformation to pure play industrial motion control specialist − Healthy order book drives positive outlook for the second half Strategic highlights − Completed strategic pivot to 4, carefully selected growth markets: Robotics & Automation, Healthcare & MedT ech, Energy & T ransmission and Industrial Safety − Project and product pipeline for our markets of choice is at record levels − Orderly phase-out of remaining Mobility activities with stable cash contribution and no further investment Key highlights Q2 AND HALF YEAR 2026 RESULTS 5
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[Confidential] 2. Strategic and Operational update 6
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[Confidential] Innovative motion control solutions KENDRION TODAY 7 Transformed pure-play industrial motion control specialist Mission critical, high-durability technology defined by high cost of failure but small share of system cost Focused on carefully selected secular growth markets of Robotics & Automation, Healthcare & MedT ech, Energy & Transmission Infrastructure and Industrial Safety Unique position maintained by long term customer relationships, advanced IP , high-quality products, long-cycle product co-development and rigorous regulatory certifications Specialised in actuation, fluid control, braking and control electronics for industrial applications
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[Confidential] Strategic pivot to selected growth markets KENDRION TODAY, FY2025 REVENUE 8 Robotics & Automation Energy & Transmission Infrastructure Healthcare & MedTech Integrated Industrial Safety Systems Shortage and increasing cost of manual-intensive labour Retooling of strategic industries Reshoring of global supply- chains Requirement for precision, efficiency and reliability Global shift towards total electrification Unprecedented, growing demand for electric power, driven by exponential growth in data centres and AI compute capabilities Requirement for high-performance critical motion- control components Ageing global population Shortage of healthcare expert labour AI-driven rise of personalised medicine and diagnostics Requirement for extreme precision Safe automation for industrial machines with direct human interaction Strict regulatory frameworks Requirement for high-precision components and safety control electronics ~€120m ~€20m ~€25m ~€30m
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[Confidential] − Revenue in HY1 2026 ended 1% above HY1 2025 − Market demand continues to grow, offset by customer-specific volume decline at a limited number of accounts rather than by underlying market conditions − Order book is healthy - European machine building industry, robotics and automation see improved demand − High number of development projects for customer specific products in all markets of focus: Robotics and Automation, Healthcare and MedT ech, Energy and T ransmission Infrastructure, Industrial Safety Industrial Actuators and Controls Q2 AND HALF YEAR 2026 RESULTS 9
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[Confidential] Industrial Actuators and Controls LONGER TERM Actuators − Beverage dispenser valves growing, with more demand in upcoming quarters expected − Automation & robotics market is showing high and increasing demand for oscillating and rotary solenoids − Biocompatible, medical grade valves and pressure regulators have significant market traction − Shape-Memory-Alloy (SMA) based lock development finished, ready to enter into parcel locker business Inductive Heating − High number of projects in implementation phase − Low power induction generator SHS* in testing phase at customer site − Important dryer project won, high inductive power needed (up to 1.5 MW) Controls − Important project won with new 48V drive controller: the VIPER platform 10 * Small Heating System: 1-3 kW per channel
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[Confidential] Revenue growth driven by secular growth in markets of choice − HY1 2026 revenue of EUR 51.5 million: +8% vs HY1 2025 − Growth in automation & robotics and medical − Profitability and cashflow well above prior year − Healthy order book and secular growth trends in Robotics and Automation and in Healthcare and MedT ech expected to drive growth in the second half and beyond Industrial Brakes Q2 AND HALF YEAR 2026 RESULTS 11
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[Confidential] Industrial Brakes LONG TERM Robotics & Automation − "Perfect Duo" servomotor brake prototypes delivered as platform for Industrial Robots, Cobots and ultimately Humanoids: − Small form factor ‘Slim’ Permanent Magnet Brake − High performance ‘High T orque’ Permanent Magnet Brake − Customised Servo Line Brakes won for a new AGV motor platform in warehouse automation, now in ramp -up − New Spring Applied Brake line for intralogistics drives meets strong interest as the top-efficiency class IE5 motor rollout gains momentum − Strong interest in our heavy rare earth-free brakes across servomotor and robotics applications as customers de -risk their supply chain Healthcare & MedTech − Significant traction and ramping revenue for Surgical Robots and related equipment. − New Halo Line under evaluation for a surgical robot – potential of up to 20,000 units p.a. 12
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[Confidential] 13 Kendrion ownership KB ownership − Continue regular production of automotive electronics − Utilize spare capacity as contract manufacturer for KB FLIP − Expected on 31/12/2028 − All production equipment transferred to KB − KB to serve as contract manufacturer for remaining Mobility revenue Kendrion Strategic Phase-out of Remaining Mobility Activities − Partnership secures factory continuity as Kendrion volumes decline − Cash flow contribution of partnership of around EUR 7 million PARTNERSHIPKNORR-BREMSE (KB)
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[Confidential] Mobility Q2 AND HALF YEAR 2026 RESULTS − Mobility revenues up 4% in 1 HY − Fuel pump controller business runs well − Sound business is below expectation − Good EBITDA development +44 % in HY1 − Cooperation with Knorr-Bremse is running smoothly − Cooperation agreement support continued positive cash flow contributions while existing programs gradually phase out 14
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[Confidential] 2. Financial review
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[Confidential] Q2 2026 highlights − Revenue growth led by Automation & Robotics segment − Record EBITDA margin with 200 basis points increase in second quarter − EBITDA increase driven by positive pricing, leveraging volume growth and staff cost discipline HY1 2026 highlights − Revenue growth of 5% at constant rates of exchange with all business groups contributing to higher revenues − EBITDA margin expands 210bp to upper end of target range − Return on invested capital improves to 26.3% driven by EBITA growth and a significantly reduced invested capital base − Operating expenses up 2%, largely offset by other operating income Business review Q2 AND HALF YEAR RESULTS 16 Normalized (in EUR million) Q2 2026 Q2 2025 delta Revenue 63,6 61,4 4% EBITDA 11,5 9,9 16% EBITA 8,4 6,6 27% Net profit before amortization from continuing operations 5,9 4,3 37% Net profit before amortization from discontinued operations - 0,8 NM Net profit before amortization 5,9 5,1 16% EBITDA as a % of revenue 18,1% 16,1% EBITA as a % of revenue 13,2% 10,7% Normalized (in EUR million) HY1 2026 HY1 2025 delta Revenue 128,8 123,4 4% EBITDA 22,5 19,0 18% EBITA 16,4 12,6 30% Net profit before amortization from continuing operations 11,1 7,7 44% Net profit before amortization from discontinued operations - 1,1 NM Net profit before amortization 11,1 8,8 26% EBITDA as a % of revenue 17,5% 15,4% EBITA as a % of revenue 12,7% 10,2% Return on invested capital1 (12 months rolling) 26,3% 13,9% 1 Invested capital excluding intangibles arising from acquisitions. 2025 is including discontinued operations.
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[Confidential] Business review DEVELOPMENT BY SEGMENT 17 IAC -/-2% IB + 8% MOB + 8% IAC +1% IB +8% MOB + 4% Industrial − HY1 2026 revenue increase by 5% driven by improved market conditions and pipeline conversion to revenue − IB increases 8% with strong demand in Automation and medical − IAC growth of 1% with good momentum in main segments offset by declines in a number of accounts − EBITDA margin improves 120 basis points positive pricing, volume growth and cost discipline Mobility − Revenue increased by 4% year-on-year as project ramp-ups more than offset the impact of phasing out activities − EBITDA increase reflects good volumes and contributions from the co-operation agreement with Knorr Bremse 17
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[Confidential] CASH FLOW AND FINANCIAL POSITION Highlights − Normalized free cash flow of EUR 4.0 million in HY1, affected by seasonal build up of working capital in HY1 − Dividend payment and share repurchase program drive net debt increase of EUR 17.8 million − Solid financial position with leverage ratio of 1.2 (HY1 2025: 2.4) − Capital expenditure of EUR 3.4 million, well below EUR 6.1 million depreciation − EUR 62 million availability in cash and headroom under credit facilities − Agreement on key terms for EUR 70 million committed credit facility to refinance existing facilities maturing in 2027 Business review 18
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[Confidential] 3. Outlook
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[Confidential] − Macroeconomic visibility remains limited as geopolitical and trade uncertainty persists − For the second half, Kendrion expects the strong performance to continue supported by a healthy order book, and strong project pipeline − As industrial systems become smarter and more autonomous, the need for safe, precise and reliable motion solutions is increasing − Longer term, Kendrion is well positioned to benefit from structural growth in robotics and automation, healthcare and medtech, energy and transmission, and industrial safety − Kendrion will share its strategic plans and updated financial targets during its Capital Markets Day on 17 September 2026 Outlook… 20
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[Confidential] 2027 Financial Targets UNCHANGED 21 * Against HY1 2025 in constant currency ** EBITA / invested capital, excluding goodwill and intangibles arising from acquisitions ROI** Dividend Expectation: 5-8% annual growth (2024-2027) 15%-18% from 2025 23%-27% from 2027 At least 50% of Normalized Net Profit EBITDA margin RevenueRevenue 5%* 17.5% 26.3% 61% HY1 2026
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[Confidential] Capital Markets Day – Key Topics 17 SEPTEMBER 2026 22 Kendrion strategy: Focused Industrial Specialist in Motion Control 01 Markets of choice: Key Applications Segments and Secular Growth opportunities 02 T echnology: Mission Critical and Performance Enhancing 03 Commercial traction: Key Customers and Project Pipeline 04 Mobility: Managed Run-Off with Secured Cash Generation 05 Financial Highlights: Well-Invested for Growth, 2030 Financial T argets 06
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[Confidential] 4. Q&A