Kontron (SANT) investor relations material

Business Overview and Market Positioning

• Focuses on smart industrial IoT solutions with a diversified B2B customer base, connecting up to 1 million edge devices and servers; no single customer exceeds 5% of revenue.

• Provides integrated hardware and software, including KontronOS, for sectors like transportation, defense, and industrial automation, with real-time 5G/6G connectivity and built-in cybersecurity.

• Member of SDAX® and TecDAX®, headquartered in Austria and listed in Germany, serving over 4,500 customers including blue-chip clients.

• Solutions are Cyber Resilience Act-compatible, addressing upcoming 2027 regulatory requirements for critical infrastructure.

• Record order backlog of EUR 2.544 billion, with a book-to-bill ratio of 1.13, indicating strong demand and improved working capital.

Financial Performance and Restructuring

• Q1 2026 revenues grew 1.7% to EUR 364 million, with EBITDA at EUR 46 million and net profit at EUR 20 million.

• Operating cash flow is EUR 3 million adjusted, or EUR -9 million unadjusted; working capital improved to EUR 283 million; equity ratio increased to 42.5%.

• Revenues are flat like-for-like, but order entry is strong; gross profit down 10% due to COM business sale and supply chain issues.

• Ongoing restructuring program targets annual savings of over EUR 30 million by Q3, with EUR 25 million in related costs and 339 FTEs reduced out of a 500 FTE target.

• Net debt temporarily increased by EUR 50 million; GreenTec restructuring aims for profitability recovery in Q4 2026.

Strategic Transactions and Shareholder Developments

• EUR 126 million from the COM business sale is outstanding, accruing 8.5% interest; penalty applies if not paid by September.

• Ennoconn triggered a mandatory tender offer after surpassing 30% ownership, offering EUR 23.5 per share, with the offer expected to launch by end of June and a four-week acceptance period.

• Ennoconn and Foxconn seek to deepen strategic ties, especially for automation and robotics, but are unlikely to exceed 50% ownership.

• Analyst consensus targets an average share price of EUR 30.29, well above current levels.