Annual Integrated Report 2019

Staying Focused

Automotive, Industrial brakes and China.

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‘Staying focused’

Preface of the CEO

The global economic climate in 2019 was challenging, especially for the automotive sector, which struggled throughout the year. IHS Markit Ltd estimates the total number of cars sold in 2019 at 89 million, around 6% lower than the 94 million sold in 2018. Activity levels in the industrial sector at the start of the year were similar to those of 2018 but declined in the second half, especially in Germany, the main market for Kendrion’s industrial business. In fact, the German manufacturing PMI index stood at 41.7 in September 2019, a 10-year low, with a mild recovery in November 2019. Not surprisingly, the difficult market conditions negatively influenced both our top and bottom line.
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Strategy and financial objectives

Return on
investment

of at least (2023)

20%

7.1%

EBITDA margin

of more than

15%

10.5%

Dividend pay-out

35-50%

35%

Key figures

412.4

8.1%

Revenue

(EUR million)

2018 448.6

19.4

45%

EBITA

(EUR million)

2018 35.4

10.6

53%

Net profit

(EUR million)

2018 22.6

7.1%

5.3%

ROI

(in %)

2018 12.4%

10.6%

0.9%

Working
capital

(as % of revenue)

2018 11.5%

25.5

143%

Free
cash flow

(EUR million)

2018 10.5

56.8%

8.3%

Solvency

2018 48.5%

1.1

21%

Net debt /
EBITDA1

2018 1.4

2,316

6.0%

Total number
of employees

(FTE)

(At 31 December)

2018 2,465

49%/51%

Total number
of employees
by gender

(in % M vs F)

2018 49%/51%

2.9%

0.0%

Illness rate

(in %)

2018 2.9%

6.9

812

Accidents

(per 1,000 FTE)

Lost Time Injuries

(in days)

2018 7.3

2018 600

1 Excluding one-off costs. The bridge from reported to normalised figures can be found here.
See for reporting periods, definitions, scope and external assurance these pages of the Annual Integrated Report 2019.

Driving innovation: Lighthouse platforms

Discover four cutting-edge products that contribute to the development of safe and user-friendly collaborative robots and selfdriving and electric vehicles, and that show long-term growth potential for our business.

AVAS sound system

Integrated sound system helps electric vehicle OEMs comply with mandatory AVAS legislation.

To ensure safety on the road, as of 1 July 2019, all new types of electric and hybrid vehicles in the European Union (EU) must be equipped with an ‘Acoustic Vehicle Alerting System’ or AVAS. Specifically, these vehicles must emit a sound to alert other road users when travelling below 20 kilometres per hour or when they reverse.

Read more about the AVAS sound system

Smart valve block for sensor cleaning

‘Always clean’ sensors and cameras for drive assist systems and autonomous vehicles.

Autonomous vehicles and drive assist systems make crucial driving decisions faster than the blink of an eye. They do so using input from sensors, processors and actuators. If the sensors embedded in the vehicle are not perfectly clean in all weather conditions, the vehicle will have to stop using the system that depends on that sensor. As vehicles become ‘smarter’ all the time, clean sensors will be ‘mission critical’. A dirty sensor means the vehicle cannot continue its journey.

Read more about the sensor cleaning

Battery cooling valve

Battery cooling valve and ECU optimise battery performance and safety in hybrid and electric cars

For hybrid and electric cars, temperature has a significant impact on the performance and lifespan of the car’s battery pack. Overheating through a process called ‘thermal runaway’ can even put passengers’ safety at risk. So, ensuring batteries always operate at their optimal temperature – especially when multiple batteries are combined – is top-of-mind for development teams.

Read more about the battery cooling

Safety brake for collaborative robots

Big potential in small robotics: compact electromagnetic brake with large inner diameter.

The market for robotics is growing significantly, for industrial robots and also for smaller collaborative robots, also called ‘cobots’. This translates into big potential for safety brakes, an essential component of all robots. Safety brakes ensure that loads are held securely or brought to a fast standstill during a power failure or emergency stop.

Read more about the safety brake

2019-2023 target framework

natural-capital
social and human capital
responsible business conduct