Kontron AG presents cornerstones of new strategy

  • CEO Rolf Schwirz explains results of strategic review to analysts and investors
  • "The New Kontron" program launched to reduce internal complexity
  • Product portfolio to be streamlined, proximity to market and customers to be improved
  • Company plans to reach at least EUR 650 million revenues by 2016, as well as a gross profit margin above 25 percent and an operating margin of more than 6 percent

Eching near Munich, May 6, 2013 – Kontron AG, globally leading provider of Embedded Computer Technology (ECT), held a Capital Markets Day for analysts and institutional investors on April 30. Rolf Schwirz, Kontron AG's CEO, presented the results of his strategic review as well as the cornerstones of his "The New Kontron" program. This program represents a significant broadening of the organizational reorientation that was implemented in 2013, with a view to reposition the company above and beyond optimizing its organizational structure.
"2013 represents a new start for Kontron. We have a lot of homework ahead of us to return Kontron to a path of sustainable and profitable growth. But we already know exactly which internal measures we need to take to boost our efficiency," said Rolf Schwirz, CEO of Kontron AG. "We have held intense discussions across all corporate levels over recent weeks. I am now confident that we will pull together and implement the right measures to make Kontron fit for the future."
Acquisitions in recent years have increased the company's complexity enormously, raising operating expenditure and diminishing profitability. The company now aims to counter this development decisively with an expanded strategy program. Internal opportunities to improve structures and processes, and to leverage synergies, have not yet been exploited in full. Add to that product innovations that Kontron can develop and market internationally.
"With our leading market position and high-quality products, Kontron is well positioned with customers to benefit from the enormous growth potential inherent in the ECT market," notes Rolf Schwirz. "We have a long tradition as a technology leader, and have countless times proven our innovative capacity through our excellent research and development work. We will build on these values to position ourselves better for the future."
The Management Board aims to use 2013 and the following year to transform Kontron AG. Revenue of between EUR 500 million and EUR 550 million is expected for the 2013 financial year. Gross profit and operating earnings are set to come in at around the previous year's level. By 2016, the Management Board aims to achieve a revenue level of a least EUR 650 million, an operating margin above 6 percent, and a gross profit margin of over 25 percent.



For further information:
Kontron AG
Gaby Moldan
Oskar-von-Miller Str. 1
D – 85386 Eching
Phone: +49 8165 77 212
Fax: +49 8165 77 222
e-mail: gaby.moldan@kontron.com

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