DGAP-News

Kontron AG closes 2015 on a high note, Ennoconn deal validates strategic realignment - Seite 2

2015 fiscal year. For the first time since I was appointed CEO, we had to
make a downward adjustment to our annual guidance. However, the results
posted for the fourth quarter, and especially the new strategic partnership
with Ennoconn give us reason to be optimistic for 2016 and beyond", says
Rolf Schwirz, Kontron's CEO. "This partnership puts us in an excellent
strategic position to exploit the opportunities associated with the rapid
development of the Internet of Things."

Cash flow from operating activities rose by EUR 12.5 million to EUR 14.2
million (2014: EUR 1.7 million). In addition to a EUR 4.5 million increase
in net income for the year, this effect was driven in particular by a
decrease of more than EUR 15 million in trade and other receivables, as
well as lower tax payments (EUR 2.9 million), which outweighed the
reduction in liabilities and provisions (EUR 11.2 million).

The partnership with Ennoconn - validating Kontron's strategic realignment

Through this partnership with Ennoconn, a subsidiary of Foxconn Technology
Group (Taiwan), Kontron achieves a range of strategic and operational
objectives: most importantly, it converts its strategic decision to become
a leading provider of hardware/software solutions into reality. It also
re-establishes a strong and permanent foothold in the APAC marketplace.
Likewise, it intensifies cooperation with a company which can help lower
its cost base, thus giving especially its Communications business a new
lease of life. Moreover, it regains access to production capacity in Asia
which will boost its channel business in particular. And finally, the cash
injection enhances financial flexibility.

Outlook 2016

Sales are expected between EUR 460 and 480 million and a gross margin of
above 25%. The adjusted EBIT margin after eliminating one-off costs, which
will be incurred primarily but not exclusively with regard to the
partnership with Ennoconn, is expected within a corridor of 3-5%.

Key figures for fiscal year 2015

                                               FY 2015   FY 2014   Δ
Order intake                      EUR million  391.8     481.7     - 18.7%
Order backlog                     EUR million  269.3     324.6     17.0%
Revenues                          EUR million  467.7     456.8     2.4%
book-to-bill ratio                             0.84      1.05      -
0.21ppt
Gross margin                      %            26.1      26.0      0.1ppt
EBIT adjusted for restructuring   EUR million  14.5      8.8       64.8%