Kontron AG: Demand remains strong in first half of the year

Linz (pta005/04.08.2022/07:00 UTC+2)

Kontron AG: Demand remains strong in first half of the year

• Net profit jumps 23.0% to EUR 12.8 million (PY: 10.4 million) in Q2
• Revenue growth of 10.0% to EUR 660.7 million. (PY: EUR 600.6 million).
• Order intake of EUR 838 million in the first half of the year exceeds revenue by 27%
• Guidance for 2022 confirmed: organic revenue growth of 12% up to EUR 1,500 million

The technology group Kontron AG (www.kontron.ag, ISIN: AT0000A0E9W5, WKN: A0X9EJ, stock exchange symbol: KTN) was able to increase revenues by 10.0% to EUR 660.7 million (PY: EUR 600.6 million) in the first half of 2022, organic growth was as high as 10.4% after the partial withdrawal from Russia. EBITDA increased to EUR 62.6 million (PY: EUR 58.3 million), already close to the current target for the EBITDA margin of 10%. Net profit increased by 23.0% up to EUR 12.8 million in the second quarter (PY: EUR 10.4 million). Earnings per share (undiluted) went up by 18.8% to 38 cents (PY: 32 cents).

The strong order intake of EUR 838 million compared to revenues of EUR 661 million indicates continued strong growth. In the second quarter alone, order intake was EUR 405 million, significantly higher than generated revenue and above plan for the sixth time in a row. The strong demand for products and solutions from the Kontron Group confirms the Group's good market position. Kontron AG's Project "Focus", to evaluate the sale of the IT services business, is proceeding according to plan and we expect a decision in the third quarter of 2022. The proceeds from the potential sale are to be used to drive forward the Group's IoT activities. In addition, planned major IoT acquisitions will support growth.

The encouraging order intake and excellent growth prospects are clouded by the continued impact on supply chains. Kontron was able to counteract this with increased inventories and has even gained market share. The value of overdue orders nevertheless amounts to EUR 127 million, but Kontron AG expects to be able to deliver a large part of these orders in the financial year 2022 based on continuous improvements in the procurement market. This is expected to improve the operating cash flow burdened by the shortage of components by the end of the year.

Hannes Niederhauser, CEO Kontron AG: "Our order situation remains very good and the growth prospects in the IoT sector are excellent. This makes me optimistic that we will achieve our set goals. Without accounting for the planned sale of the IT services division, we still expect 12% organic growth to EUR 1,500 million revenue in 2022, despite ongoing problems in the supply chains. Following the sale of the IT services division, we plan to replace the lost revenue with IoT revenues and expect revenues to increase to EUR 2,000 million by 2025 with a significantly higher EBITDA margin target of 13%.

About Kontron

Kontron AG (www.kontron.ag, ISIN AT0000A0E9W5, WKN A0X9E, KTN) – previously S&T AG – is a growing IoT technology group with about 6,000 employees and subsidiaries in 32 countries around the world. The company is listed on the TecDAX® and SDAX® of the German Stock Exchange and is one of the leading providers of smart solutions for a host of industries. With a well-known brand and its own technologies in the fields of smart factory, railway communication systems, communication solutions and smart energy, Kontron is the well-trusted partner helping businesses undertake their digital transformation journeys in a wide range of industries to achieve their future ambitions. With its brand S&T, the company is one of the leading IT service providers in Central and Eastern Europe offering a comprehensive range of IT services including datacenter and SAP operations, workplace management, IT security or IT consulting.

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Emitter:	Kontron AG Industriezeile 35 4021 Linz Austria
Contact Person:	Nicole Nagy, Investor Relations
Phone:	+43 (1) 801911196
E-Mail:	nicole.nagy@kontron.com
Website:	www.kontron.ag
ISIN(s):	AT0000A0E9W5 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt