Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Q2 2017 Earnings Presentation
22 slides from Kongsberg Automotive Asa's earnings presentation, Jul 28, 2017
Slide 1: Kongsberg Automotive ASA Second quarter 2017
Kongsberg Automotive ASA Second quarter 2017 | July 28, 2017
Slide 2: Highlights for Q2 2017
Highlights for Q2 2017 • Revenues were MEUR 268.1 in the second quarter, MEUR 27.1 (11.2%) above the Revenues/ second quarter last year, including positive currency translation effects of MEUR 0.6. Business Wins • Annualized business wins in the second quarter amounted to MEUR 70 bringing the total
Slide 3: Market Summary
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Slide 4: New business wins in Q2 2017
New business wins in Q2 2017 New business wins per quarter (per annum value) EUR Million 140 127 119 120 100 80 68 66 70 59 60 36 36 40 20 0 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 New business wins LTM (per annum value) EUR Million 350 321 319 302 290 290 288 281 281 300 250 200 150 100 50 0 3Q15 4
Slide 5: Market summary
Market summary Global Light Vehicle Production 30 Millions 25 ▸ Global Light Vehicle production 20 – H1 is up by +2.6% (4.3 million vehicles ) in 2017 versus 2016 15 (46.9). Growth in Europe +1.2%, growth in China +3.1% and 10 a slight decline in North America -0.5%. South America is up by +15%. 5 –
Slide 6: Operational Summary
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Slide 7: Initiatives taken in H1 2017
Initiatives taken in H1 2017 ▸ KA’s cost restructuring plan closing 6 facilities is progressing as planned – Cost Competiveness:. • In Q1 KA announced that the Heiligenhaus plant in Germany will be among the production facilities that will be closed. During Q2 we finalized negotiations with the work
Slide 8: Operational update: Interior Systems
Operational update Interior Systems ▸ Revenues of MEUR 63.3 in Q2, up MEUR 4.8 compared to Q2 2016 – Positive currency translation effects of MEUR 1.5 – The increase was mainly related to growth in both the European and Chinese comfort business, partly offset by a decrease in the North American Ligh
Slide 9: Operational update: Powertrain & Chassis
Operational update Powertrain & Chassis ▸ Revenues of MEUR 104.5 in Q2, up MEUR 14.5 compared to Q2 2016 – The revenue increase came across all our businesses – The sales growth in Europe is mainly related to both, the passenger car business and the commercial vehicle business. – The sales growth in
Slide 10: Operational update: Specialty Products
Operational update Specialty Products ▸ Revenues of MEUR 99.6 mill. in Q2, up MEUR 5.6 from Q2 2016 – Negative currency effect of MEUR -1.0 – The revenue increase was due to growth globally for the FTS business unit, both in the automotive and commercial vehicle markets, and in the Couplings busines
Slide 11: Financial Update
Norbert Loers Financial Update 11
Slide 12: Revenue and Adjusted EBIT, continuing business
Revenue and Adjusted EBIT, continuing business Revenues* Adjusted EBIT and Adjusted EBIT margin* MEUR MEUR and percent 271 268 5.0% 5.2% 241 241 3.7% 13.9 2.6% 13.5 218 0.3% 9.0 6.4 0.6 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 * Revenues from continued business
Slide 13: Revenue development
Revenue development Revenues continued business MEUR Revenue: 280.0 8.3 0.6 0.6 ► MEUR 27.1 (11.2%) above 265.0 14.3 the second quarter 2016 250.0 ► Growth of all segments 3.2 ► Growth across all regions: 235.0 268.1 China, Europe and America 220.0 241.0 ► New programs 205.0 ► New launches 190.0 Q2
Slide 14: Adjusted EBIT development
Adjusted EBIT development Adjusted EBIT continued business MEUR Adjusted EBIT: 18.0 ► MEUR 4.9 (54.8%) above 1.6 15.0 second quarter last year 4.1 12.0 ► Interior: one-off impacts -2.2 1.5 9.0 ► PAC: higher volume 13.9 SPR: higher volume, 6.0 ► 9.0 favorable product mix 3.0 ► Overall efficiency 0.0
Slide 15: Net Profit development
Net Profit development Net Profit MEUR 17.0 Net profit: 14.0 4.9 -1.2 ► Influenced by unrealized 11.0 -0.6 -4.1 and realized FX effects 8.0 5.7 -0.2 0.0 -1.6 ► Interest expenses 5.0 2.9 impacted by new bank 2.0 waiver -1.0 Q2 Adj. Restr. Interest FX Effects Others Net profit Tax Q2 ► Increased taxes
Slide 16: Free Cash Flow
Free Cash Flow Free Cash Flow MEUR 20.0 17 15 15.0 13 Free Cash Flow (Q2) before debt repayments: 10.0 ► Cash Flow from operating activities: 22 8 ► Cash Flow from investing activities: <11> 5.0 2 ► Purchase of treasury shares: <1> 0.0 ► Interest payments: <2> -5.0 -4 -7 Free Cash Flow is defined as
Slide 17: Cash flow and facility development
Cash flow and facility development Available funds MEUR Cash flow Facility Other 200.0 180.0 (1.0) 23.2 (11.2) 160.0 (3.4) (6.3) 6.3 (5.1) 135.9 138.3 140.0 120.0 100.0 80.0 104.2 106.5 75.3 60.0 61.8 40.0 20.0 31.7 31.9 0.0 Q1 2017 EBITDA Change in Investments Net financial Change in Change in Othe
Slide 18: Financial ratios
Financial ratios Adjusted NIBD/EBITDA* (Ltm) Adjusted ROCE (Ltm)* Times Percent 2.86 2.92 2.86 2.42 2.51 9.3% 7.7% 7.2% 6.1% 6.5% Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Equity ratio Avg. Capital Employed and turnover (Ltm)* Percent MEUR and Times 32.7% 31.0%
Slide 19: Segment financials 2nd quarter, continued business
Segment financials 2nd quarter, continued business Revenues and Adjusted EBIT MEUR and percent Interior Powertrain & Specialty Chassis Products Revenues Revenues Revenues 102 105 103 100 66 90 94 92 63 87 59 60 82 81 55 Adjusted EBIT Adjusted EBIT Adjusted EBIT 6.9% 7.3% 14.4% 14.6% 2.5% 2.9% 11.4%
Slide 20: Financial items
Financial items Net financial items MEUR Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Net financial items: 6.1 ► Change in currency effects drove the 4.2 increase in net finance costs 0.2 1.5 ► Increased interest expenses due to (0.5) -1.7 -1.8 -1.5 -2.3 -2.3 new waiver agreement -0.3 -0.2 -2.7 -0.5 (2.6
Slide 21: Summary & Outlook
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Slide 22: Summary
Summary ▸ Restructuring program continues in 2017 as planned ▸ Initiatives taken according to plan outlined at CMD – The Basildon (UK) Closure is completed – Closure of the manufacturing facility in Heiligenhaus (Germany) is progressing according to plan – Transfer of business to prepare for the clo