TKH Group N.V.: history, ownership, mission, how it works & makes money

A Brief History of TKH Group N.V.

Founded in 1930, TKH Group N.V. is a Dutch technology company headquartered in Haaksbergen, Netherlands. Initially focused on producing cables, the company has significantly diversified its operations over the decades. As of 2023, TKH operates through four main segments: Telecommunications, Industrial Solutions, Building Solutions, and Connectivity.

In 2000, TKH made a strategic move by entering the security and communication market, which contributed to its growth trajectory. By 2005, revenue reached approximately €600 million, marking a significant milestone in the company's expansion efforts.

In 2016, TKH Group officially launched its new strategic plan, focusing on innovation and technological advancement, with a specific emphasis on automation and connectivity solutions. This transition capitalized on the growing demand for smart technology in various sectors.

Financial performance from 2018 to 2022 showcased robust growth. For instance, the revenue for 2022 was recorded at €1.35 billion, reflecting an increase from €1.2 billion in 2021. The net profit saw similar growth, climbing to €113 million in 2022, up from €93 million the previous year.

In 2023, TKH Group continued to invest in sustainability initiatives, aiming for a 30% reduction in its carbon footprint by 2030. The company's commitment to sustainable practices has further solidified its market position, attracting environmentally conscious investors.

As of October 2023, TKH Group's stock is listed on Euronext Amsterdam under the ticker symbol TKH. The share price has shown resilience and growth, with a year-to-date increase of approximately 15%, reflecting investor confidence in its strategic direction and operational performance.

Looking at the segment performance in 2022, the Telecommunications segment generated €550 million, making it the largest contributor to overall revenue. The Industrial Solutions and Building Solutions segments followed, with revenues of €425 million and €375 million, respectively.

With a strong focus on innovation, TKH Group has been investing in research and development, spending approximately €40 million or about 3% of its revenue in 2022 on R&D activities. This investment aims to enhance its product offerings and maintain competitive advantage in the rapidly evolving technology landscape.

Through strategic acquisitions and organic growth, TKH Group is positioned for continued success in its sectors, with an increasing focus on digital transformation, enhancing customer experiences, and expanding its international footprint.

A Who Owns TKH Group N.V.

TKH Group N.V. is a publicly traded company listed on Euronext Amsterdam under the ticker symbol TKH. Deciphering the ownership structure of TKH Group is crucial for understanding its governance and strategic direction. As of the latest data, the ownership can be categorized into various segments, including institutional investors, private investors, and insider holdings.

Major Shareholders

The largest institutional shareholder is BlackRock, which holds approximately 6.8% of the company’s shares, amounting to around 1,423,000 shares. Other notable institutional investors include ING Group and Rabobank, showcasing a diverse base of institutional support.

Insider Ownership

Insider ownership indicates a degree of confidence among the company's executives and board members in its future performance. Key insiders include the CEO, who holds 1.2% or approximately 250,000 shares, and several members of the board of directors collectively holding 1.5% of the total shares.

Recent Share Performance

As of the end of Q3 2023, TKH Group’s stock price is approximately €40.25, reflecting a year-to-date increase of 25.4%. This growth has been supported by strong financial performance, with revenue growth of 15.2% in the first half of 2023 compared to the same period in the previous year.

Market Capitalization

The current market capitalization of TKH Group is around €1.85 billion, positioning it as a mid-cap player within the technology and industrial sectors. This is significant for attracting institutional investments and maintaining shareholder interest.

Global Presence

TKH Group N.V. operates in multiple international markets, contributing to its diversified ownership structure. The company's revenue breakdown by region highlights its strategic positioning:

Overall, the ownership structure of TKH Group N.V. reflects a blend of institutional confidence, insider commitment, and robust retail investor interest, critical for the company's ongoing strategic initiatives and expansion efforts.

TKH Group N.V. Mission Statement

TKH Group N.V., a leading technology company based in the Netherlands, focuses on enhancing connectivity through innovative solutions in the fields of Telecom, Security, Building, and Industrial Solutions. The mission statement of TKH is centered around the theme of "connecting the unconnected." This reflects the company's commitment to leveraging advanced technology to create integrated systems that meet the needs of various industries.

The company's strategic focus includes developing and offering smart technologies and total solutions that drive improvements in safety, efficiency, and sustainability across different sectors. TKH aims to achieve this by employing cutting-edge techniques in automation, digitization, and connectivity.

In 2022, TKH Group N.V. reported a revenue of €1.670 billion, indicating a growth of 7.8% compared to the previous year. The company's net profit for the same year was recorded at €145 million, reflecting an increase of 10% year-on-year. This growth trajectory underscores the effectiveness of their mission in driving business outcomes.

As part of its mission, TKH Group places a strong emphasis on sustainability. In 2022, the company invested €45 million in research and development, focusing on sustainable technologies and energy-efficient solutions. This commitment aligns with the increasing global emphasis on reducing carbon footprint and enhancing energy efficiency.

Furthermore, TKH's mission statement reflects its dedication to quality and innovation. The company has registered a total of 183 active patents as of 2023, showcasing its commitment to advancing technology within its core sectors. This innovative approach not only supports the company’s growth but also contributes to the broader industry landscape.

Overall, TKH Group N.V. remains steadfast in its mission. The focus on connecting various technologies and driving sustainable and innovative solutions continues to resonate within the company's operations and strategic objectives.

How TKH Group N.V. Works

TKH Group N.V. is a technology company specializing in innovative solutions in the field of telecom, building technologies, and industrial automation. The company operates through several segments: Telecom Solutions, Building Solutions, and Industrial Solutions, each contributing to its overall revenue strategy.

Business Segments

TKH's business model is based on providing high-quality systems and solutions that integrate hardware and software, particularly in the following areas:

• Telecom Solutions: Involved in the development of telecommunication networks.
• Building Solutions: Focuses on security systems, fire detection, and energy management systems.
• Industrial Solutions: Encompasses automation solutions for various industries.

Financial Performance

In the financial year ending December 31, 2022, TKH Group reported the following key figures:

Stock Performance

As of October 2023, TKH Group's stock has shown consistent performance on the Euronext Amsterdam. The stock price was trading around €45.50.

Market Strategy

TKH Group employs a strategy focused on innovation and sustainability. The company invests approximately 5% of its annual revenue into research and development to enhance its technological capabilities. This has allowed TKH to maintain a competitive edge in its sectors while achieving a year-over-year growth rate of approximately 10%.

Recent Developments

In 2023, TKH announced a significant contract for the deployment of its telecom solutions within a major European utility company, projected to generate approximately €50 million in revenue over the next five years. Additionally, the company has emphasized its commitment to sustainability by reducing its carbon footprint by 25% over the past two years.

Global Presence

TKH Group operates internationally, with subsidiaries and partnerships in over 25 countries. The geographic distribution of revenues reveals that approximately 60% of its total sales come from outside the Netherlands, showcasing its global footprint.

Investment Highlights

Investors are drawn to TKH Group due to its solid dividend policy, with a current dividend yield of 3.5% based on the latest payout. The company's dividend for the year 2022 was set at €1.60 per share.

Conclusion

The operational framework and financial metrics of TKH Group N.V. underline its strategic positioning within the technology sector. Through its diverse business segments and commitment to innovation, TKH continues to advance its market presence while showcasing robust financial health.

How TKH Group N.V. Makes Money

TKH Group N.V., a Netherlands-based technology company, generates revenue primarily through its three business segments: Smart Vision Systems, Smart Manufacturing, and Telecom Solutions. The diverse range of products and services offered in these segments caters to various industries, including manufacturing, telecom, transportation, and healthcare.

The Smart Vision Systems segment focuses on providing innovative imaging solutions and smart cameras. In 2022, this segment reported revenue of approximately €147 million, driven by increasing demand for automation and quality inspection in manufacturing processes.

The Smart Manufacturing segment, which includes automation solutions and industrial communication systems, generated around €270 million in revenue in the same year. The growth in this sector is largely due to the rise of Industry 4.0, with companies seeking to enhance efficiency and reduce operational costs.

The Telecom Solutions segment specializes in cabling systems and communication networks, contributing significantly to TKH's overall revenue with approximately €500 million in 2022. The expansion of fiber optic networks and 5G infrastructure has catalyzed growth in this area, driven by both urbanization and the rising demand for high-speed internet.

Further to its core segments, TKH Group also offers services related to installation and maintenance, contributing an additional €80 million in revenue in 2022. This segment is critical for generating recurring revenues and enhancing customer loyalty.

TKH's overall revenue for the fiscal year 2022 was approximately €997 million, reflecting a growth of 10% compared to the previous year. This growth can be attributed to strategic acquisitions and persistent investment in R&D, which has led to the introduction of cutting-edge technologies tailored to market needs.

In terms of geographic distribution, TKH Group derives approximately 60% of revenues from the European market, with the remaining 40% coming from other regions, including North America and Asia. The company aims to penetrate emerging markets further, capitalizing on the global demand for advanced technology solutions.

The company's strong focus on sustainability and innovation has positioned it well within the competitive landscape. TKH's R&D expenditure reached approximately €45 million in 2022, underscoring its commitment to developing new technologies and improving existing product lines.

In summary, TKH Group's diversified portfolio and strategic investments in technology, combined with a focus on sustainable solutions, are key factors driving its revenue generation across various industries. This multifaceted approach not only enhances its market positioning but also ensures resilience against economic fluctuations.