To increase our focus on clean energy even more, we decided to split the Automotive Group. Kendrion is a global, innovative company, focused on actuator products that support the transition towards clean energy. Despite these obstacles, we proceeded with discipline to deliver solid operational performance, profitability and cashflow, while continuing to invest in, and execute on, our long-term ambitions. This put serious pressure on our delivery performance, our production flexibility, and our people. As in 2021, we could not rely on timely delivery of raw materials in both Industrial and Automotive. With the ongoing war in Ukraine, lockdowns in China and high inflation, volatility dominated the economic environment, creating a challenging period for most businesses, for the third year in a row. In my view, we are on our way to achieve these targets.” Over the same period, our EBITDA has grown by 29% and our ROI by 44%. Over the past two years, our organic revenue has grown, on average, by 12% per year. We have set ourselves ambitious medium-term financial targets of 5% organic growth between 20, an EBITDA of at least 15% in 2025 and an ROI of at least 25% in 2025. Looking ahead, we expect the current economic environment to continue in the first half of 2023, with potentially better economic circumstances in the second half of the year, as China’s economy is expected to benefit from the end of its strict zero-COVID policy. Industrial Brakes, Industrial Actuators and Controls, Automotive E and China all focus on delivering actuator products related to electrification in 2022, approximately 65% of our revenue came from clean energy applications. Both Industrial Brakes and Industrial Actuators and Controls are performing significantly above pre-pandemic levels and the Industrial product and project pipeline supports sustained growth over the coming years. Revenues grew by 19% to EUR 276.5 million, as demand for actuators for electrification applications increased in many of our markets. Our Industrial franchise had a strong year. The impairment of EUR 57.3 million was announced on 8 February 2023. As a result of the Automotive split, it became necessary to impair the goodwill and other intangibles related to the acquisitions of companies in the past which were, and are, entirely focused on the combustion engine. This is our fifth consecutive year with a positive book-to-bill ratio. We added EUR 305 million in lifetime revenue to the pipeline of which 68% were nominations for Automotive E. Automotive Core handles our combustion engine-related business with cash and cashflow as its KPIs. Automotive E is responsible for products relevant to electric vehicles with profitable growth and innovation as its main goals. To help increase our focus on clean energy, we took the strategic decision to split the Automotive Group. I am proud of our performance and of the progress we have made towards our ambitious financial targets for 2025. We kept our operational focus on product margins, cost and working capital, and despite the significant investment in our 28,000 m 2 manufacturing facility in Suzhou Industrial Park, China, our normalized cash flow stayed positive at EUR 3.1 million. “In 2022, in a volatile economy with high inflation and geopolitical instability, we delivered strong revenue growth and improved our normalized profit. The reconciliation from reported to normalized figures can be found on page 14 of the press release. Return on invested capital 1 (12 months rolling)ġ Invested capital excluding intangibles arising from acquisitions.Ģ Normalized for items that are not related to the group’s normal course of business.
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