Full-year revenue of EUR 412.4 million, down 8% compared with 2018 (EUR 448.6 million)
Normalised 2019 EBITDA decreased by 26% to EUR 43.4 million (2018: EUR 58.5 million); EBITDA margin of 10.5% (2018: 13.0%)
Normalised EBITDA for Q4 2019, 28% lower at EUR 7.2 million (Q4 2018: EUR 9.9 million); EBITDA margin of 7.8% (Q4 2018: 9.8%)
Net profit (normalised) of EUR 10.6 million in 2019 (FY 2018: 22.6 million)
Strong normalised free cash flow of EUR 25.5 million (2018: EUR 10.5 million)
Nominated lifetime revenues in Automotive of EUR 320 million (2018: EUR 340 million), book-to-bill of 1.25
Year-on-year revenue growth in China of 29%
Acquisition of INTORQ completed on 8 January 2020
Proposed dividend of EUR 0.25 per share; pay-out ratio 35% of normalised full-year net profit

Joep van Beurden, Kendrion CEO:
"As trade tensions and their broader impact on consumer confidence persisted, our markets continued to be weak. In Automotive, global vehicle production was 89 million in 2019, 6% lower than in 2018, and the German Manufacturing Purchase Managers Index (PMI) hit a 10-year low in September 2019. This affected our 2019 revenue, which at EUR 412.4 million came in 8% lower than in 2018.

The revenue decline has put our results under pressure, and in response we have continued to streamline our organisation. As previously announced, we have realised further efficiency improvements of EUR 5.0 million on a yearly basis as of the start of 2020. We have also reduced our working capital, limited investments only to those projects driving future growth and generated a record normalised free cash flow of EUR 25.5 million.

Despite the difficult trading environment, we continue to invest in our focus areas of Automotive, Industrial
Brakes and China, as we firmly believe in the longer-term prospects of our business. In Automotive, we added EUR 320 million of lifetime revenues to our order book on top of the EUR 340 million we added in 2018. Our healthy project pipeline is a strong leading indicator of future growth. In China, several projects in our pipeline started mass production in 2019, leading to year-on-year revenue growth of 29%.

In Industrial Brakes the acquisition of INTORQ GmbH & Co. KG, a global market leader in spring-applied brakes was completed on 8 January 2020. With this acquisition Kendrion now offers a complete product offering of permanent magnet brakes and spring-applied brakes to customers in Europe, the USA, China and India. The acquisition changes the nature of the Kendrion Group. We now have approximately 55% of our revenues in Automotive, and 45% in Industrial segments. About 80% of our revenue is in segments in which we invest for organic growth, and 20% in markets more focused on cash generation. We have started the integration of INTORQ and expect to present a strategic and financial update of the enlarged Kendrion organisation on 18 August 2020 as we announce our first-half 2020 results. This will include updated medium-term financial targets, fully reflecting the INTORQ acquisition.

Looking ahead, we see our markets stabilising albeit at a lower level than in early 2019. The effects of the COVID-19 corona virus on our business are limited to date. However, the impact on the global economy is uncertain and has the potential to be severe.

We are confident in our ability to grow both our revenue and profitability in a sustainable way, with our simplified, leaner organisation, our improved balance between Automotive and Industrial, our pipeline momentum, strong financial position and underlying business fundamentals

Outlook
Looking ahead, we see our markets stabilising, albeit still at a lower level than in early 2019. The effects of the COVID-19 corona virus on our business are limited to date. However, its impact on the global economy is uncertain and has the potential to be severe. We continue to see ample growth opportunities
in our focus areas of Automotive, Industrial Brakes and China in the medium to longer term. We remain positive about our business fundamentals, with our main objective being to deliver sustainable profitable growth.
We expect 2020 investments to be in line with depreciation as we continue to focus on cash flow and prioritise investments that contribute to future growth, especially in the three areas of focus.
We expect to present a strategic and financial update of the enlarged Kendrion, including INTORQ, on 18 August 2020 as we announce the first-half 2020 results. This will include updated medium-term financial targets, fully reflecting the INTORQ acquisition.

200218 Kendrion press release - Kendrion posts strong cash flow and adds significantly to order book in tough market that affects Q4 and full-year results.pdf
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