Kendrion Worldwide

Division Automotive

Kendrion N.V.

Kendrion N.V. is a public limited liability company incorporated under the laws of the Netherlands, with its registered office in Zeist.

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Strategy

Kendrion develops, manufactures, markets and sells high-quality electromagnetic systems and components for industrial and automotive applications. The company utilises its know-how, track record in innovation capacity, global footprint and strong commercial relationships to offer solutions to a wide range of customers. The company expects to achieve organic growth in revenue averaging 5% per annum in the three year period ending 2018 and aspires to accelerate this growth in the years thereafter. Kendrion has committed to deliver an EBITA margin of 10% as from the end of 2018. Kendrion aims to deliver these targets by simplifying the way it does business and by focussing investments in innovation in areas in which Kendrion sees the greatest opportunity for growth. Kendrion is committed to being a transparent company that is aware of the importance of sustainability and its social responsibility.

Simplify, Focus, Grow

Kendrion announced its updated strategy on 3 May 2016. It is founded on three pillars: Simplify, Focus, Grow.

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Targeted add-on acquisitions

Kendrion has a strong financial position and has delivered excellent rates of cash conversion which have contributed to a healthy balance sheet. Kendrion endeavours to acquire companies that enhance the company’s leading position in its automotive and industrial markets. Acquisition targets need to offer good returns in terms of their EBIT and ROI, preferably at levels similar to or above Kendrion’s returns and that leads to an improvement in earnings per share.

Corporate Social Responsibility (CSR) and sustainability

Pursuant to Kendrion’s mission, CSR and sustainability are intrinsic and integral elements of the company’s culture and operations. Sustainability is at the core of many of the company’s products. Kendrion intends to contribute actively to a sustainable and ‘green’ environment for the communities in which the company is active. Kendrion strives to integrate its CSR efforts into all elements of its value chain and this is reflected clearly in this integrated annual report. Kendrion’s product portfolios include many products that meet customer requirements for energy savings, lower emissions and safety. They can in the longer term make an essential contribution to creating value for all Kendrion’s stakeholders and attracting motivated employees.

Strategic financial targets

Kendrion stated its medium-term financial objectives on 3 May 2016. The three-year targets are to deliver an EBITA margin of 10% as from the end of 2018, to grow organically until 2018 broadly in line with Kendrion’s average historical organic growth of an average of 5% per annum and to maintain the dividend policy of paying out 35 to 50% of the net profit.