Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Investor Day (December 2021)
70 slides from Kongsberg Automotive Asa's investor day presentation, Dec 9, 2021
Slide 1: Kongsberg Automotive Capital Markets Day
KONGSBERG AUTOMOTIVE CAPITAL MARKETS DAY DECEMBER 9, 2021
Slide 2: CEO Presentation / Part I
CAPITAL MARKETS DAY CEO PRESENTATION / PART I DECEMBER 9, 2021 KONGSBERG AUTOMOTIVE // 2
Slide 3: Forward-Looking Statements and Non-IFRS Measures
Capital Markets Day 2021 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, wh
Slide 4: Topics for Today
Capital Markets Day 2021 TOPICS FOR TODAY > INTRODUCING OUR NEW VISION > KONGSBERG AUTOMOTIVE CURRENT STATUS > SHIFT GEAR - CORE IMPACT AREAS > FINANCIAL TARGETS > ROADMAP > KEY TAKEAWAYS
Slide 5: Top Management Team
Capital Markets Day 2021 TOP MANAGEMENT TEAM JOERG BUCHHEIM FRANK HEFFTER DR. CHRISTIAN AMSEL PRESIDENT & CEO // Zurich (Switzerland) CHIEF FINANCIAL OFFICER // Zurich (Switzerland) CHIEF TECHNOLOGY OFFICER // Zurich (Switzerland) // previously // previously // previously CEO INALFA Roof systems Gro
Slide 6: Introducing Our New Tagline, Vision and Mission
INTRODUCING OUR NEW TAGLINE, VISION AND MISSION
Slide 7: We Drive the Global Transition to Sustainable Mobility
VISION WE DRIVE THE GLOBAL TRANSITION TO SUSTAINABLE MOBILITY MISSION ON OUR PATH TO BECOMING A TRUE GLOBAL LEADER, WE PUT E N G I N E E R I N G , S U S T A I N AB I L I T Y, A N D I N N O V A T I O N I N T O P R A C T I C E . We seek to constantly improve our products, leverage our experience in cu
Slide 8: Kongsberg Automotive Current Status
KONGSBERG AUTOMOTIVE CURRENT STATUS
Slide 9: Global Footprint
Capital Markets Day 2021 GLOBAL FOOTPRINT 40 NORWAY SWEDEN KONGSBERG MULLSJÖ RAUFOSS LJUNGSARP HVITTINGFOSS GOTHENBURG POLAND CANADA NETHERLANDS PRUSZKOW LOCATIONS 11,000 SHAWINIGAN ENSCHEDE KOLUSZKI BRZESC UK 19 SLOVAKIA USA NORMANTON EMPLOYEES IN GRAND RIVER VRABLE BASILDON WILLIS BURTON HUNGARY J
Slide 10: Interior Divestment Ongoing: One Out of Five Vehicles Contains Our Products
POWERTRAIN & CHASSIS INTERIOR 35% REVENUE 27% REVENUE CLUTCH AND GEARSHIFT INTERIOR COMFORT SYSTEMS SYSTEMS, ACTUATORS AND LIGHT DUTY CABLES AND VEHICLE DYNAMICS APPLICATIONS APPROXIMATELY Interior divestment ongoing ONE OUT OF FIVE (all figures pre-divestment) VEHICLES CONTAINS OUR PRODUCTS SPECIAL
Slide 11: At a Glance: KA Business Units and Products
Current status AT A GLANCE KA BUSINESS UNITS AND PRODUCTS POWERTRAIN & CHASSIS SPECIALTY PRODUCTS INTERIOR DRIVER CONTROL AND DRIVELINE PRODUCTS FLUID TRANSFER SYSTEMS, AIR COUPLINGS SEAT COMFORT SYSTEMS AND MECHANICAL SYSTEMS, AND OPERATOR CONTROL SYSTEMS AND ELECTRO-MECHANICAL LIGHT-DUTY MOTION CO
Slide 12: After Divestment ~75% of Revenue in CV and Off-road
Current status THE DIVESTMENT STRENGTHENS OUR EXPOSURE TO COMMERCIAL VEHICLE AND OFF-ROAD SEGMENTS REVENUE IN EUR bn / REVENUE SHARE BY CUSTOMER SEGMENT IN % EUR 1.1 bn EUR 0.8 bn After our divestment 26 we generate ~75% of PASSENGER 45 our revenue in the CV CARS and Off-road business 56 COMMERCIAL
Slide 13: New KA - Business Units and Products Segment View
Current status NEW KA - BUSINESS UNITS AND PRODUCTS SEGMENT VIEW Passenger Car products are mostly delivered by DRIVELINE (DRL) - ON-HIGHWAY (ONH) and FLUIDS (FTS) mostly focus on Commercial Vehicles, while OFF-HIGHWAY (OFH) and COUPLINGS (COU) largely focus on SPP LVP CVP SPP PASSENGER CARS (DRL) C
Slide 14: Persistent Market Trends Show Powertrain Shift and Higher CV and Off-road Profitability
Current status PERSISTENT MARKET TRENDS SHOW POWERTRAIN SHIFT AND HIGHER PROFITABILITY IN CV AND OFF-ROAD SEGMENTS NUMBER OF VEHICLES SOLD, IN MLN; x % x % PROFITABILITY PASSENGER VEHICLES MEDIUM AND HEAVY OFF-ROAD (INCL. LCV) COMMERCIAL VEHICLES 120 EV Hybrid ICE 3-8 % >10 % 1.5 >10 % 100 4 80 1.0
Slide 15: Short-Term Supply Chain Difficulties Put Automotive Industry Under Pressure
Current status SHORT-TERM SUPPLY CHAIN DIFFICULTIES PUT THE AUTOMOTIVE INDUSTRY UNDER PRESSURE RAW MATERIAL PRICES COST INFLATION VOLATILE PRODUCTION S H O R T AG E S >130% y-o-y Significant y-o-y price Automotive sales plummeted Since first quarter of 2021 price increase for steel increases for fre
Slide 16: Market Headwinds Countered with Stringent Counter Measures
Current status MARKET HEADWINDS COUNTERED WITH STRINGENT COUNTER MEASURES 2021 figures, in EUR m MARKET HEADWINDS INCLUDE: > Raw material shortage and ~ 40 price increases ~ - 35 ~ 50 > Higher freight costs ~ 45 > Dynamic demands from customers COUNTER MEASURES INCLUDE: > Customer negotiations > Ope
Slide 17: KA Financials Show Resilience in Dynamic Environment
Current status KA FINANCIALS SHOW RESILIENCE IN DYNAMIC ENVIRONMENT €~800 M €~50M REVENUE ADJ. EBIT WE EXPECT TO RECEIVE €175M NET PROCEEDS BY END OF Q1 2022 On continuing business On continuing business 1.1 € ≥1 M BOOK-TO-BILL FREE CASH FLOW RATIO On continuing business On continuing business achie
Slide 18: Shift Gear Core Impact Areas
r SHIFT GEAR CORE IMPACT AREAS
Slide 19: KA Focuses on Three Impact Areas to Shape Its Future
Shift gear - core impact areas KA FOCUSES ON THREE IMPACT AREAS TO SHAPE ITS FUTURE OPERATIONALGear II EXCELLENCE AND PERFORMANCE GEAR I Focus on profitability improvement STRATEGIC SHIFT TO GROW IN PROFITABLE SEGMENTS GEAR II Clear strategic roadmap for each business including M&A activities SUSTAI
Slide 20: Masterplan: Specific Work Packages Toward a New KA
Shift gear - core impact areas MASTERPLAN: 6 SPECIFIC WORK PACKAGES ON THE WAY TO A NEW KA TO ACHIEVE MAXIMUM IMPACT GEAR I GEAR II GEAR III PERFORMANCE SECURE & INNOVATE ENVIRONMENT, SOCIAL, 1 IMPROVEMENT 3 (P&C) 5 AND GOVERNANCE PROGRAM ACCELERATE DIGITIZATION & ORGANIZATION 2 AND OPERATING MODEL
Slide 21: The Performance Push
Performance push 1 THE PERFORMANCE PUSH 5 core workstreams: Commercial Excellence, Direct and Indirect Purchasing, Operations, and Cash Management Strong performance infrastructure including a rigorous drumbeat, KA-wide cloud- based measure tracking tool, clear targets, and regular performance revie
Slide 22: 2021 Measures Will Carry Over to 2022 and Beyond
Performance push THE MEASURES WE HAVE IMPLEMENTED IN 2021 WILL HAVE 1 SIGNIFICANT CARRY-OVER EFFECTS TO 2022 AND BEYOND Group measure impact for 2021 per calendar week, in EUR m Discontinued business 55 55 53 KA (continued business) 52 KA-wide performance improvement 15 15 43 44 14 15 38 40 39 EUR 5
Slide 23: After Divestment We Have Improved Profitability and Are Rightsizing
Organization and operating model 2 AFTER OUR DIVESTMENT WE HAVE IMPROVED PROFITABILITY, AND ARE WORKING ON RESHAPING AND RIGHTSIZING OUR ORGANIZATION OUR NEW KEY FIGURES DIVESTMENT IMPLICATION STATUS SALES 2021: EUR 0.8bn ADJ. EBIT 2021: EUR ~ 50m (6%) EBIT and cash flow improved by divestment CAPEX
Slide 24: Focus on Highly Profitable Specialty Products in Niche Segments
Organization and operating model 2 WE WILL FOCUS ON HIGHLY PROFITABLE SPECIALTY PRODUCTS IN NICHE MARKET SEGMENTS WITH A REGIONAL PRESENCE (GLOBAL) MAINTAIN & STRENGTHEN ESTABLISH KA AS CORE PLAYER LONG-TERM ADDITIONAL STRONG MARKET POSITION AND ENTER WHITE SPOTS POTENTIAL MARKETS M ARINE M UNICIPAL
Slide 25: 2030 Ambition: 2.0–2.5x Revenue of Today
Secure & Innovate (P&C) / Accelerate & Innovate (Specialty Products) 3 4 WE AIM IN 2030 FOR A HIGHLY PROFITABLE BUSINESS WITH 2.0–2.5X THE REVENUE OF TODAY Revenue and EBIT trajectory, vs. 2021 post-divestment TAKE AWAY MID-TERM PLAN LONG-TERM AMBITION 2024 2026 Second to None Wherever we are operat
Slide 26: Competitive & Performance Check: Couplings and Off-Highway
Secure & Innovate (P&C) / Accelerate & Innovate (Specialty Products) 3 4 COMPETITIVE & PERFORMANCE CHECK – SECOND TO NONE UNLOCKS STRONG GROWTH POTENTIAL COUPLINGS O F F - HI G H W AY COUNTRY FOCUS1: COUNTRY FOCUS1: REVENUE 115 (EST. 2021) REVENUE 165M EMPLOYEES 400 EMPLOYEES 600 CAGR 2019-2021 7% C
Slide 27: Competitive & Performance Check: FTS and On-Highway
Secure & Innovate (P&C) / Accelerate & Innovate (Specialty Products) 3 4 COMPETITIVE & PERFORMANCE CHECK – SECOND TO NONE UNLOCKS STRONG GROWTH POTENTIAL FTS O N - H I G HW A Y COUNTRY FOCUS1: COUNTRY FOCUS1: REVENUE 132MEUR REVENUE 205M EMPLOYEES 1000 EMPLOYEES 800 CAGR 2019-2021 20% CAGR 2019-2021
Slide 28: Competitive & Performance Check: Driveline
Secure & Innovate (P&C) / Accelerate & Innovate (Specialty Products) 3 4 COMPETITIVE & PERFORMANCE CHECK – SECOND TO NONE UNLOCKS STRONG GROWTH POTENTIAL DRIVELINE COUNTRY FOCUS1: REVENUE 210M EMPLOYEES 2,760 CAGR 2019-2021 -10% GROW 36% 34% SECOND TO NONE INDEX #RANKING (based on market share): 6 #
Slide 29: Strong Growth in Most Profitable Segments
Secure & Innovate (P&C) / Accelerate & Innovate (Specialty Products) WE EXPECT STRONG GROWTH IN OUR MOST PROFITABLE SEGMENTS, THANKS TO OUR STRUCTURED INNOVATION PROCESS SEGMENT GROWTH RATES 2022-2026 P&C SPP 7 to 9% 10 to 12% Average Per annum SEGMENT PROFITABILITY TARGET 2026 ONH DRL SPP 6 to 10%
Slide 30: Strategic Shift to Grow in Profitable Segments
Secure & Innovate (P&C) | Accelerate & Innovate (Specialty Products) 3 4 STRATEGIC SHIFT TO GROW IN PROFITABLE SEGMENTS EXAMPLES FOR PORTFOLIO PRODUCT STRATEGIES SPECIALTY PRODUCTS P&C OFH FTS COU 3A SHIFT BY WIRE Profit improvement in cable SECURE shifter business and vertical integration of electr
Slide 31: P&C Secure: Driveline Business as LPV Segment
Secure & Innovate (P&C) P&C SECURE: DRIVELINE BUSINESS AS LPV SEGMENT 3A WITH FURTHER FOCUS ON COST IMPROVEMENT AND ABOVE-AVERAGE GROWTH POTENTIAL IN CHINA SHIFT BY WIRE PRIMARILY PASSENGER CAR MARKET TARGET MARKET SHARE, INCL. RESULTING VOLUMES MARKET SHARE, IN % 4% 10% 15% 80 PRODUCTION VOLUME 57
Slide 32: Innovation Projects Evaluated Along Focus Regions
Secure & Innovate (P&C) | Accelerate & Innovate (Specialty Products) 3B 4B STRATEGIC SHIFT TO GROW IN PROFITABLE SEGMENTS INNOVATION PROJECTS EVALUATED AND DEVELOPED ALONG FOCUS REGIONS LEVELS OF MATURITY OF R&D PIPELINE (DEVELOPMENT HORIZONS) GR. CHINA NA EU 27+3 RAW COLLECTION LONGLIST OF PRIORITI
Slide 33: Top Innovation Opportunities from Existing Portfolio
Secure & Innovate (P&C) | Accelerate & Innovate (Specialty Products) 3B 4B … AS SHOWN BY THESE OPPORTUNITIES WE HAVE IDENTIFIED BY LEVERAGING OUR EXISTING PORTFOLIO TOP-INNOVATION OPPORTUNITIES KA STRENGTHS AND APPLICATIONS SMART ACTUATORS Park Lock actuator in production, currently Dog-Clutch actua
Slide 34: Refocusing Business Model Toward Battery Thermal Management Systems
Accelerate & Innovate (Specialty Products) 4B REFOCUSING BUSINESS MODEL TOWARDS GROWTH IN HIGH MARGIN BUSINESSES OF NICHE AREAS (BTMS) FTS/COU: BATTERY THERMAL MANAGEMENT SYSTEMS (BTMS) BTMS Market Estimate & KA Couplings Target Market Share, in M€ X% Expected KA's market share 0% 1% 4% 8% 20% 1,160
Slide 35: ESG Is Increasingly a License-to-Play
Environment, social, and governance 5 ESG IS INCREASINGLY A LICENSE-TO-PLAY FOR OUR INVESTORS, CUSTOMERS, AND TALENTS Some of our customers are pushing for 100% clean energy in production OEMS INCREASE INVESTORS DEMAND TALENTS PREFER by 2025 REQUIREMENTS SUSTAINABLE RETURNS "GREEN" COMPANIES Green i
Slide 36: Shift Gear Program Helps Achieve Sustainability Targets
Environment, social, and governance 5 THE SHIFT GEAR PROGRAM HELPS US ACHIEVE OUR SUSTAINABILITY TARGETS WHILE IMPROVING OUR BUSINESS OUR ESG-TARGETS PROGRESS OF OUR INITIATIVES Carbon neutral products by 2039 > Work with suppliers towards carbon neutrality 100% carbon free energy used in > 40% rene
Slide 37: Digitalization & Automation of Core Processes
Digitization & automation of core processes 5 DIGITALIZATION & AUTOMATION OF CORE PROCESSES IMPROVES EFFICIENCY, QUALITY AND TIME TO MARKET Smart manufacturing can increase productivity Combining these elements by 20 % while reducing cost gives high-quality data on a «Digital» image of non-quality b
Slide 38: Coffee Break
COFFEE BREAK KONGSBERG AUTOMOTIVE // 38
Slide 39: Transformation of the Automotive Sector: Trends and Opportunities
TRANSFORMATION OF THE AUTOMOTIVE SECTOR: TRENDS AND OPPORTUNITIES DR. CHRISTIAN AMSEL, CTO DEC 9, 2021
Slide 40: CASE Themes Still the Driver for Automotive Transformation
CASE THEMES STILL THE DRIVER FOR THE AUTOMOTIVE TRANSFORMATION “CASE themes continue Connected to drive the Automotive Transformation – Automated ELECTRIC currently has greatest impact” Smart Mobility *) Electric *) Smart Mobility describes a transportation ecosystem where stakeholders use data and
Slide 41: Transformation Happening Everywhere at Different Speeds
LV = Light Vehicle = Cars + Light Commercial Vehicle <6t BEV = Battery Electric Vehicle TRANSFORMATION OF THE AUTOMOTIVE SECTOR IS HAPPENING EVERYWHERE, BUT AT DIFFERENT SPEEDS. ELECTRIC HAS GREATEST IMPACT Total vehicle parc and technology penetration of new car sales - expected new car sales in 20
Slide 42: Major Driving Forces Influencing Transformation Speed
EC = European Commission 3 MAJOR DRIVING FORCES ARE INFLUENCING THE TRANSFORMATION SPEED DRIVEN BY ELECTRIC. MAIN CHALLENGES: ACCELERATION CONSUMERS TECHNOLOGY REGULATION > Range anxiety and > Battery Electric > EC adopted a package charging options are the under European Green > Efficiency improve-
Slide 43: Legislation Will Accelerate the Transformation
CNG = Compressed Natural Gas LPG = Liquefied Petroleum Gas LEGISLATION IS GOING TO ACCELERATE THE TRANSFORMATION, EXAMPLE OF EUROPEAN COMMISSION: SIGNIFICANT INCREASE OF CO2 FLEET TARGETS 2021: Change from NEFZ to more > Top-Down simulations show that further realistic WLTP drive-cycle strengthening
Slide 44: Structured Assessment of Different Segments
AS PART OF OUR PORTFOLIO MODERNIZATION, WE HAVE MADE A STRUCTURED ASSESSMENT OF THE DIFFERENT SEGMENTS > Innovation involves uncertainty – we are managing our risk using a structured methodology, ensuring a cost-efficient development process > We have identified areas where there will be a » high de
Slide 45: Selecting the Most Promising Products for KA
AS PART OF OUR PORTFOLIO MODERNIZATION, WE SELECTED THE MOST PROMISING PRODUCTS FOR KA > The chosen structured methodology led to a longlist with more than 120 ideas for KA > A stringent prioritization of the longlist clustered into: > “Bold Moves”, > “Logical Extensions” and > “Low Hanging Fruits”
Slide 46: Leverage Strengths in Specialty Products Based on 3 Growth Pillars
KA WILL LEVERAGE STRENGTHS IN MORE PROFITABLE SPECIALTY PRODUCT SEGMENT (SPP) BASED ON 3 GROWTH PILLARS: 1 Broaden customer base in current Systematic approach to… application fields Agricultural Power Trucks Machinery Sports 1 2 Broaden Product Portfolio for selected applications – e.g. for Couplin
Slide 47: Streamlined Innovation and R&D Processes
WE STREAMLINED OUR INNOVATION AND R&D PROCESSES TO SHORTEN TIME-TO- MARKET SIGNIFICANTLY > The newly defined innovation process provides clear structure for » Agile and Focused innovations to shorten Time-to-Market and » for selected M&A activities > Structured Gate Releases to ensure needed maturit
Slide 48: No 1 Choice for Electrical Vehicle Manufacturers
FEATURES & BENEFITS Couplings EV products "NO 1 CHOICE FOR ELECTRICAL BEST IN CLASS – LEAKAGE LEVEL OPTIMAL AIRFLOW VEHICLE MANUFACTURERS" KA HIGHER SYSTEM REQUIREMENTS OPEN NEW DOORS KA > Pneumatic brake systems continues to shift from ICE to EV. No negative effect on air couplings EASY BUILDING BL
Slide 49: Growing Business Benefiting from EV Transition
FTS EV products GROWING BUSINESS BENEFITING FROM EV TRANSITION RELEVANCE PRODUCT TRENDS MARKET DYNAMICS ICEV ICEV > Weight savings RELEVANCE PHEV BEV FCEV TODAY FUTURE SAFETY REGULATIONS » replacement of steel and rubber by high performance plastic fluid transfer lines AIR SUSPENSION LINES
Slide 50: Product Lines
FTS EV products 1st Rfi’s received on B-Sample order for PRODUCT LINES Fuel Cell truck next generation EV System Cooling truck at European OEM AIR SUSPENSION HYDRAULIC BRAKE FUEL EMISSION CONTROL+ TURBO COOLANT > Increasing comfort by leveling > Guaranteed safety in addition > Resistance to all (agg
Slide 51: Electric Vehicle Market
ELECTRIC VEHICLE MARKET MARKET DYNAMICS PRODUCT HIGHLIGHTS ELECTRIFICATION, AUTONOMOUS & DIGITIZATION ELECTRIC PEDALS AND HAND BATTERY MANAGEMENT CONTROLS SYSTEMS PRODUCTS & OPPORTUNITIES > Electric Power Steering » STD EPS for Powersport Vehicles » Lightweight EPS for applications sensitive to size
Slide 52: Autonomous Vehicle Market
AUTONOMOUS VEHICLE MARKET MARKET DYNAMICS PRODUCT HIGHLIGHTS ELECTRIFICATION, AUTONOMOUS & DIGITIZATION STEERING ACTUATOR GPS + STEERING ACTUATOR PRODUCTS & OPPORTUNITIES > Electric Power Steering » Demonstrated on agricultural vehicle » Provides precise fine movement and sufficient torque to drive
Slide 53: Driveline Segment with High Market Dynamic and New Emerging Customers
P&C EV products DRIVELINE SEGMENT WITH HIGH MARKET DYNAMIC AND NEW EMERGING CUSTOMERS MARKET DYNAMICS PRODUCT HIGHLIGHTS SHIFT FROM ICE SHIFT IN CAR TO XEV PARC MIX SHIFT-BY-WIRE ELECTRIC ACTUATORS TRANSFER TO DRIVE MARKET AND SHIFT-BY-WIRE CONSOLIDATION SYSTEMS COMPETITIVE POSITIONING TOGGLE SHIFTE
Slide 54: P&C Driveline Products & Technology for PHEVs & EVs
P&C EV products P&C DRIVELINE PRODUCTS & TECHNOLOGY FOR PHEVs & EVs SBW GEAR & DECOUPLING ACTUATOR FOR ELECTRIC DRIVE TRANSMISSION CONNECT / DISCONNECT VEHICLE TYPE FORWARD/REVERSE PARK LOCK ACTUATOR ACTUATOR E-DRIVE AXLE SHIFTER PHEV YES YES (PRND) YES YES Plug-in Hybrid Electric Lever, Stalk, Rota
Slide 55: On-Highway High Performing Transmission Business
P&C EV products ON-HIGHWAY HIGH PERFORMING TRANSMISSION BUSINESS MARKET DYNAMICS PRODUCT HIGHLIGHTS SHIFT TO INCREASING ELECTRIC MODULARIZATION POWERTRAIN GEAR ACTUATION SYSTEMS CLUTCH ACTUATION SYSTEMS ADOPTION OF AIR SUSPENSION YIELDS OPPORTUNITIES FUEL ECONOMY INCREASING TOTAL AND ENERGY COST OF
Slide 56: P&C On-Highway Products & Technology for HEVs & EVs
P&C EV products P&C ON-HIGHWAY PRODUCTS & TECHNOLOGY FOR HEVS & EVS CONNECT / DISCONNECT KA VDY PRODUCTS WEIGHT OPTIMIZED TRANSMISSION PARK LOCK ACTUATOR VEHICLE DYNAMICS, CAB VEHICLE TYPE CLUTCH ACTUATOR E-AXLE AND/OR E- ACTUATOR (24 V) AND AXLE SUSPENSION MOTOR(S) HEV Yes Yes Yes Yes Hybrid Electr
Slide 57: Leveraging Strengths and Improving Focus to Grow Profitably
WE ARE LEVERAGING OUR STRENGTHS AND IMPROVING OUR FOCUS TO ENSURE WE CAN GROW PROFITABLY INTO THE FUTURE OF THE AUTOMOTIVE INDUSTRY > We are transforming our product portfolio to better match the future of our industry > Our key markets will continue to be commercial vehicles and off-highway, with s
Slide 58: CEO Presentation / Part II
CAPITAL MARKETS DAY CEO PRESENTATION / PART II DECEMBER 9, 2021 KONGSBERG AUTOMOTIVE // 58
Slide 59: Topics
Capital Markets Day 2021 TOPICS > INTRODUCING OUR NEW VISION > KONGSBERG AUTOMOTIVE CURRENT STATUS > SHIFT GEAR - CORE IMPACT AREAS > FINANCIAL TARGETS > ROADMAP > KEY TAKEAWAYS KONGSBERG AUTOMOTIVE // 59
Slide 60: Financial Targets
FINANCIAL TARGETS
Slide 61: Main Financial Pillars to Support the New KA
Financial targets MAIN FINANCIAL PILLARS TO SUPPORT THE NEW KA PROFITABLE Growth INNOVATIVE Growth MANAGED Growth > Our long-term goal is to be > Without careful “second to none” in the > We will reach this goal management of liquidity sectors where we operate through targeted growth and leverage, o
Slide 62: Divestments Will Improve Most Key Metrics
Financial targets THE DIVESTMENTS WE HAVE MADE WILL IMPROVE MOST OF OUR KEY METRICS Attractive increase on major SELECTED LINE ITEMS PRE-DIVESTMENT POST-DIVESTMENT CHANGE KPIs despite 2021 P&L Sales 1,150 820 (29%) CM (%) 34 % 35 % +3% > All CORONA limitations GM (%) 20 % 22 % +8% R&D / Sales 5.1% 4
Slide 63: Aiming to Be Second to None in Financial Metrics
Financial targets IN THE LONG TERM WE ARE AIMING TO BE “SECOND TO NONE” ALSO IN FINANCIAL METRICS COMPETITOR KPIS VS. OUR TARGETS SELECTED KPIS MID-TERM 2024 IN 2026 Revenue, EURm 6,380 5,809 1,480 1,250 1,600 Gross Margin 24% 9% 19% 25% 30% Adj. EBIT, EURm 510 175 28 >120 >175 R&D / Sales 10% 2% 5%
Slide 64: Roadmap
ROADMAP “ans bic wie
Slide 65: Overall KA Transformation Plan Until End of 2022
Roadmap THE OVERALL KA TRANSFORMATION PLAN UNTIL END OF 2022 OCT. 2021 DEC. 2021 MAR. 2022 JUN. 2022 SEPT. 2022 DEC. 2022 PROJECT ELEMENT Operational Excellence and 1 PERFORMANCE PUSH performance 2 ORGANIZATION AND OPERATING MODEL New management team Strategic shift to grow in profitable 3 SECURE AN
Slide 66: Net Proceeds Will Deleverage, Reward Shareholders and Invest in Growth
Roadmap NET PROCEEDS WILL DELEVERAGE THE COMPANY, REWARD SHAREHOLDERS AND INVEST IN OUR FUTURE GROWTH DELEVERAGE RETURN INVEST DE-LEVERAGING: CASH RETURN TO LIQUIDITY TO INVEST: SHAREHOLDERS: CAPEX to fuel organic growth 10% of the Market Cap in Bond Call 75M EUR share buybacks Accelerate productivi
Slide 67: Key Takeaways
KEY TAKEAWAYS
Slide 68: Foundation: Executive Summary of 2021
Key takeaways EXECUTIVE SUMMARY: IN 2021 WE HAVE WEATHERED THE STORM AND PREPARED FOR THE FUTURE… > Despite CORONA Year 2 – Kongsberg Automotive limited the damages and 2023 delivered in 2021 on their revised Guidance by Performance Improvement > Beside this, Kongsberg Automotive has started to exec
Slide 69: Forward: 2022 and Beyond
Key takeaways … IN 2022 AND BEYOND WE WILL COMPLETE OUR DIVESTMENTS AND CONTINUE TO EXECUTE OUR PLANS > In 2022 we will successfully close the divestments and make Kongsberg Automotive further fit for the future. > This includes post-divestment restructuring, streamlining the organization with a mot
Slide 70: We Drive the Global Transition to Sustainable Mobility
WE DRIVE THE GLOBAL TRANSITION TO SUSTAINABLE MOBILITY