Annual Integrated Report 2022
Full focus on the energy transition
Preface of the CEO
Full focus on the energy transition
Looking back, 2022 was another challenging year. Russia’s invasion of Ukraine compounded the difficulties caused by the COVID pandemic that dominated 2020 and 2021. Yet while supply chain volatility, soaring energy costs and inflation continued to affect businesses around the world, we nonetheless delivered strong results. I am proud of our performance, and of the progress we have made towards our ambitious financial targets for 2025. We are only at the beginning of the broad energy transition to cleaner forms of energy, and Kendrion is well positioned to make full use of the opportunities this presents to our Business Groups and in China.
Strategy and financial objectives
Average organic growth
TARGET 2019-2025
5%
ACTUAL
8%
Return on Investment1, 2
TARGET 2025
25%
ACTUAL
16%
EBITDA margin2
TARGET 2025
15%
ACTUAL
11%
Divident pay-out
TARGET
35-50%
ACTUAL
50%
- Invested capital excluding intangibles arising from acquisitions.
- Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measures, refer to reconciliation of non-IFRS information, starting here.
Key figures
Revenue
(EUR million)
12%
519.3
2021 464.0
Profit for the period
(EUR million)
NM
3
-46.3
2021 14.4
Normalized1 EBITDA
(EUR million)
3%
57.4
2021 55.8
ROI1,2
(in %)
0.5%
15.6%
2021 15.6%
Total number of employees (FTE)
(at 31 December)
0.9%
2,753
2021 2,728
Total number of employees by gender
(in % F vs M)
47/53
2021 48/52
Illness rate
(in %)
14.9%
5.4%
2021 4.7%
Accidents
(per 1,000 FTE)
29.3%
6.5
2021 9.2
- Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to reconciliation of non-IFRS information, starting here.
- Invested capital excluding intangibles arising from acquisitions.
- Not meaningful.
Products and potential in the energy transition
Kendrion focuses on sustainable growth, by developing intelligent actuators that help drive the global transition towards electrification and other forms of clean energy. Whether for wind power, autonomous vehicles, factory process efficiencies, or optimized industrial heating processes, our smart, compact, and connected actuators are helping our OEM customers to migrate to safe and clean forms of energy.
‘Braking’ into the Chinese Automotive market
chinese market
The automotive global market for commercial vehicles is forecast to grow at a considerable rate, with Asia Pacific as the largest market. Our permanent magnet brake, combined with our overall expertise in the Automotive sector, puts us in an excellent position to capture the many opportunities. We have already begun working on a significant first application with an international brake system developer, for various vehicle manufacturers active in the Chinese market.
Sound evolution: our soundscaping innovations move forward
SOUND EVOLUTION
Supporting the change towards clean, electric mobility, with increased passenger comfort and safety, is a strategic focus for Kendrion. By reorganizing our Automotive Business Group in 2022, we are freeing up more resources to boost innovations in suspension, sensor cleaning and sound. Our new organization, ‘Automotive E’, will focus on opportunities within Autonomous, Connected, Electrified and Shared mobility (ACES).
Beyond the ‘standard’ for wind turbine electromagnetic brakes
wind turbine
Ambitious zero-emission goals and energy security are causing the global wind energy industry to skyrocket. Globally, wind turbine installations are set to rise from 100 Giga Watt in 2020 to 400 Giga Watt in 2030. As the only supplier in the market to offer electromagnetic brakes built on both spring-applied and permanent magnet technologies for wind turbine blades and nacelles, this market upsurge brings great opportunities for Kendrion.
Ready-to-use door locks meet needs of booming commercial market
compact door lock
Increased safety and security concerns are driving the booming commercial door lock market. Kendrion’s own line of universal, compact, ready-to-use and competitively priced door locks puts us in an excellent position. With our latest addition – the shock resistant Compact Door Lock, we can also fill the void left by international players in the market for lockers.
Electromagnets for the growing nuclear energy sector
safety valves
The world is embracing nuclear power as part of the sustainable energy transition. Currently, 60 new reactors are under construction worldwide, and many more are being upgraded. Safety valves – driven by our electromagnets – play a critical role in controlling the steam pressure in the plants. As demand for nuclear power has risen, so has the market for our electromagnets. We saw the impact clearly in 2022, as our sales in Europe increased, and we entered the promising US market.
2019-2023 target framework
Please refer to the section ‘About the sustainability report’ here of this Annual Integrated Report for reporting periods, definitions, scope and limited assurance review.
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