Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Investor Presentation (March 2020)
28 slides from Kongsberg Automotive Asa's investor presentation, March 2020
Slide 1: Kongsberg Automotive Investor Presentation
Kongsberg Automotive Investor Presentation February / March 2020
Slide 2: Forward-Looking Statements and Non-IFRS Measures
Kongsberg Automotive Forward-Looking Statements and Non-IFRS Measures Forward-Looking Statements This presentation contains certain “forward-looking statements”. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which
Slide 3: Today's Presenter
Today’s Presenter Henning Jensen, President and Chief Executive Officer Professional experience Kongsberg Automotive President and Chief Executive Officer June 2016 - Present Kistefos AS Chief Executive Officer 2011 - 2015 RHI AG Chief Executive Officer, Chief Financial Officer and Chairman 2010 – 2
Slide 4: Kongsberg Automotive at a glance (1/2)
Who we are Kongsberg Automotive at a glance (1/2) Overview Selected KPIs Revenue Adjusted EBIT ➢ Headquartered in Zurich, Switzerland and listed on the Oslo Stock Exchange (2017A / 2018A / 2019A) (2017A / 2018A / 2019A) ➢ 3 segments: Interior, Powertrain & Chassis, Specialty Products ▪ Interior: int
Slide 5: Kongsberg Automotive at a glance (2/2)
Who we are Kongsberg Automotive at a glance (2/2) Interior Powertrain & Chassis Products Specialty Products Interior Comfort Transmission Light Duty Cables Vehicle Dynamics Air Couplings FTS Off Highway Systems Control Revenue % 5% 21% 36% 4% 9% 11% 14% 2019A Top 3 in pedals Market Fragmented market
Slide 6: Kongsberg Automotive benefits from a well diversified customer base
Our Customers Kongsberg Automotive benefits from a well diversified customer base 1 Share of KA’s Contribution of top 10 direct customers Total Revenue 12% Top 10 11.3% customers 11% ~55% 10.3% 10% Revenue 2019A: €1,161mm 9% 7.9% 8% 5.8% 7% 6.4% 6.3% 6% 5.7% 5.6% 0.2% 5.4% 5.2% 5.0% 4.9% 5% 4.4% 1.6
Slide 7: Revenues and Adjusted EBIT
Financial Performance Revenues and Adjusted EBIT Q4 2019 revenue and adjusted EBIT figures were impacted by lower volumes Revenues Adjusted EBIT MEUR MEUR and percent 2016 2017 2018 2019 2016 2017 2018 2019 1.161 7.0% 1.123 7.2% 7.2% 6.7% 1.056 7.0% 307 6.9% 288 294 5.1% 288 288 986 5.4% 5.4% 6.1% 2
Slide 8: EBIT and Net Income
Financial Performance EBIT and Net Income Full-year growth is driven by higher revenues & lower restructuring costs EBIT Net Income MEUR MEUR 2016 2017 2018 2019 28.8 62.4 23.8 53.7 20.3 19.2 17.9 14.8 15.0 14.1 13.8 12.7 13.0 11.9 10.5 11.0 23.8 9.7 8.0 21.2 7.7 6.2 5.7 5.7 4.9 4.4 4.2 3.3 2.9 1.6
Slide 9: Historical financials overview
Financial Performance Historical financials overview The growth in top-line and profitability is a result of the changes initiated in 2016 Revenue performance (€m) Key financials (€m) P&L 1200 1161 €m FY 2016* FY 2017* FY 2018* FY 2019 1150 1123 1100 1057 Revenue 986 1,057 1,123 1,161 1050 1000 986
Slide 10: Financial review
Financial Performance Financial review 2019 Actuals Bridging FY 2018 to FY 2019, the following accounted for the main deviations (MEUR): Revenue growth of +38. Expected Adj. EBIT Effect: +7 Actual Figures The following items had effect on Adj. EBIT: MEUR 2017 2018 2019 Sales 1.057 1.123 1.161 ▪ Stro
Slide 11: Main areas of KA's growth potential
Future Growth Main areas of KA’s growth potential In spite of current market headwinds we are still well positioned for future growth Underlying Premiumization OEM outsourcing Market share gain market decline ▪ Weighted growth ▪ Content increase for ▪ OEMs reducing ▪ Focus on white spots rates in ou
Slide 12: New business wins – KA Group
Future Growth New business wins – KA Group Strong bookings in a challenging market environment New business wins per quarter (per annum revenues) New business wins per quarter (lifetime revenues*) MEUR MEUR 140 Average: MEUR 82 600 Average: MEUR 337 120 500 100 400 80 300 60 122 121 537 561 110 459
Slide 13: Revenue projections (1/2)
Future Growth Revenue projections (1/2) A high level of our revenue projections are supported by existing and booked programs KA Group revenue projections – illustrative example by product status 1.800 ▪ The product/model cycles in the automotive industry vary from three to ten years, primarily depe
Slide 14: How our business works (2/2)
Future Growth How our business works (2/2) Illustrative example of the margin progression through the program life-cycle Project timeline RFQ Award SOP EOP % Margin “New programs” “Mature programs” (Illustrative example) Time RFQ = Request for Quotation SOP = Start of Production EOP = End of Product
Slide 15: Passenger car production volumes
Market Update Passenger car production volumes The global passenger car production is forecasted to decrease only slightly in 2020 120 Units in millions Growth 100 -5.9% 19-20 94.3 -0.5% 2.6 88.7 88.3 90.3 3.4 Rest of World -2.6% 2.0 2.0 2.1 3.3 3.4 3.7 South America 4.2% 80 17.0 16.3 16.5 16.5 Nort
Slide 16: Truck production volumes
Market Update Truck production volumes The global truck production is forecasted to decrease strongly in 2020 Units in millions 4 Growth -3.3% 19-20 3.35 -8.5% 3.24 0.10 3.10 1.1% 0.11 Rest of World 2.97 0.15 3 0.61 South America 20.4% 0.13 0.64 0.49 North America -24.6% 0.48 0.58 0.57 0.59 Europe -
Slide 17: Key investment highlights & 2019 performance
Summary and Highlights Kongsberg Automotive Key investment highlights & 2019 performance ▪ Kongsberg Automotive – a truly global mid-sized automotive supplier with a diversified customer base ▪ Diversified revenue base with ~75% from OE-automotive (LD&HD) and ~25% from non-automotive markets includi
Slide 18: 2020 Outlook
Outlook Kongsberg Automotive 2020 Outlook ▪ For 2020, we forecast declines in most of our end markets, and consequently we expect our revenues to come in at levels similar to those of 2019 as we see us performing slightly better than our end markets. ▪ Based on our current orders, we expect Q1 2020
Slide 19: 2020 Cash Flow Outlook
2020 Cash Flow Outlook Total Cash Flow* FY 2020 improvements 40 MEUR 30 20 15 20 2 10 0 -10 5 7 -20 5 6 -30 2 4 -40 9 -44 -50 FY 2019a Operational Lower Lower Tax Bonus 2019 Customer Customer Timing WC Other FY 2020e improvements CapEx Payments payments development Boni prepaid Reduction costs & pub
Slide 20: Backup Slides
Backup Slides NS KONGSBERG AUTOMOTIVE VY 20
Slide 21: Key financial policies and governance
Key financial policies and governance ▪ Leverage target: 1.5x net debt / EBITDA Leverage targets ▪ Further deleveraging ▪ Target equity ratio1 of 35% Liquidity ▪ Minimum operational cash on balance sheet: €20m Investments ▪ Select investments in key product / niche areas based on strict return perfo
Slide 22: Corporate Responsibility
Corporate Responsibility Corporate Responsibility We commit to operate in an economically, socially & environmentally responsible manner Guiding Principles Leadership & Talent Human Rights & Labor Practices Supply-chain Management We aim to develop our employees in We advance initiatives which We im
Slide 23: Corporate Responsibility: Highlights and Key Figures
Corporate Responsibility Corporate Responsibility Highlights and Key Figures MSCI ESG Rating CO2 Emission Intensity* AAA 41 AA 39 39 A BBB BBB BBB BBB BBB BBB 37 37 BB B CCC 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 The MCSI ESG “BBB” rating was confirmed in Jan. 2020. Despite the increase i
Slide 24: New business wins by segment
New business wins by segment New business wins secure future growth development in all segments New business wins per quarter (per annum revenues) New business wins per quarter (lifetime revenues*) MEUR MEUR 130 600 122 121 561 SPP SPP 120 550 537 P&C P&C INT 110 INT 110 500 135 99 459 463 100 148 5
Slide 25: Interior Segment
Interior Segment Interior Revenue 2019A: 26%1 €304mm Description % of Interior revenue Products End-markets ➢ Exclusively focused on LDV market Interior Comfort Systems ➢ Core Interior Comfort Systems – strong market growth – Technology leader in integration of the various seat functionalities 81% –
Slide 26: Powertrain & Chassis Segment
Powertrain & Chassis Segment P&C Revenue 2019A: 40%1 €461mm Description % of P&C revenue Products End-markets ➢ Technology shift from mechanically based systems towards electronically controlled actuation systems ➢ Product range include: – AMT Actuators and PRND Actuators Transmission control – Clut
Slide 27: Specialty Products segment
Specialty Products segment Speciality Revenue 2019A: Products €396mm 34%1 Description % of SP revenue Products End-markets ➢ Focused on air brake applications for HDVs Air Couplings ➢ Technology leader with growing market share – Premium priced products 26% – Savings to OEMs through simplified proce
Slide 28: Glossary
Glossary Term Meaning AMT Automated Manual Transmission EV Electric Vehicle FTS Fluid Transfer System HDV Heavy Duty Vehicle HMI Human Machine Interface HR / AR Headrest / Armrest ICE Internal Combustion Engine LDC Light Duty Cable LDV Light Duty Vehicle OE Original Equipment OEM Original Equipment
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