Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Shareholder Meeting (June 2020)
25 slides from Kongsberg Automotive Asa's shareholder meeting presentation, Jun 10, 2020
Slide 1: Shareholders' presentation
Kongsberg Automotive Shareholders' presentation June 10th, 2020
Slide 2: Important notice and disclaimer
Important notice and disclaimer This document has been produced solely for use at the announced information meeting on 10 June 2020 held in connection with a private placement (the "Private Placement") and subsequent offering (the "Subsequent Offering") in Kongsberg Automotive ASA (the "Company", to
Slide 3: Disclaimer
Kongsberg Automotive Disclaimer 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 may cause actual results, performance,
Slide 4: Risk factors
Risk factors This presentation does not constitute an offer to subscribe the Company's shares (the "Shares"). Shareholders should on a continuous basis be aware that the Shares involves inherent risk. Shareholders in the Company should carefully consider the risk factors set out below in addition to
Slide 5: Risk factors (cont.)
Risk factors (cont.) The Group may be particularly negatively affected by the increasing trends towards electric rising exchange rate appreciate. In addition, fluctuations in foreign exchange rates could enhance mobility. The Group's Powertrain & Chassis segment produces gear shifters, shift cables
Slide 6: Risk factors (cont.)
Risk factors (cont.) The Group is exposed to risk relating to its product development, production and project The Group may face risks relating to climate change that could have an adverse impact on the management: The Group's product development and improvement activities are associated with a Grou
Slide 7: Risk factors (cont.)
Risk factors (cont.) Changes in accounting standards may materially impact the reporting of the Group's financial To the extent that interest rates or any drawings were to increase significantly, the Group's interest condition and results of operations: The Group's consolidated financial statements
Slide 8: Today's Presenter
Today’s Presenter Henning Jensen, President and Chief Executive Officer Professional experience Kongsberg Automotive Oslo, Norway & Zürich, Switzerland June 2016 - Present President and Chief Executive Officer Kistefos AS Oslo, Norway 2011 - 2015 Chief Executive Officer RHI AG Vienna, Austria 2010 –
Slide 9: Key highlights
Highlights Kongsberg Automotive Key highlights ▪ 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 including aftermarket ▪ Strong market positions i
Slide 10: Kongsberg Automotive at a glance
Who we are Kongsberg Automotive at a glance Overview Selected KPIs Revenue Adjusted EBIT ➢ Listed on Oslo Stock Exchange, parent company in Norway. (2016A/2017A / 2018A / 2019A) (2016A/2017A / 2018A / 2019A) ➢ 3 segments: Interior, Powertrain & Chassis, Specialty Products ▪ Interior: interior comfor
Slide 11: Kongsberg Automotive benefits from a well diversified customer base
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% 0.6% 4.2% 4.
Slide 12: Kongsberg Automotive at a glance
Who we are Kongsberg Automotive at a glance 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 with
Slide 13: 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 14: New Business Wins – KA Group
Financial Performance New Business Wins – KA Group New business wins per quarter (Annualized revenues) New business wins per quarter (Lifetime revenues) 140 121 600 561 120 110 102 491 99 500 459 463 100 89 427 77 400 80 323 338 339 66 65 65 €m 299 €m 60 300 40 200 20 100 0 0 Q1-18 Q2-18 Q3-18 Q4-18
Slide 15: Book-to-bill performance
Financial Performance Book-to-bill performance High number of new business wins over the last 2 years ensure long term growth relative to the market Revenues (LTM in MEUR) in MEUR 1.71 1.48 1.50 1.49 1.48 1.50 1.41 1.23 1.32 Book-to-bill ratio 1,880 1,681 1,697 1,701 1,679 1,607 1,497 1,527 New Busi
Slide 16: Corona Virus and its impact on the automotive industry
Corona Impact Corona Virus and its impact on the automotive industry ▪ The corona virus (Corona) has impacted the automotive industry significantly. ▪ The Corona outbreak started in China slightly before the Chinese new year vacation. ▪ This led to shutdowns in China extending beyond the normal new
Slide 17: The impact on the Corona virus on Kongsberg Automotive
Corona Impact The impact on the Corona virus on Kongsberg Automotive ▪ In Q1, 2020, Kongsberg Automotive (KA) saw revenues decline of more than 15% YoY to €262 million. This was driven by a combination of declines in China following the Chinese new year shutdown extension and the almost complete shu
Slide 18: Three Scenarios – Revenue impact for Kongsberg Automotive
Corona Impact Three Scenarios – Revenue impact for Kongsberg Automotive ▪ As mentioned, we have modeled three scenarios/cases: Revenues High case Medium Case Low case 2019 (for reference) €1,161 million €1,161 million €1,161 million 2020 € 914.6 million €892.8 million €832.5 million This assumes shu
Slide 19: Revenue assumptions used for the Medium and Low scenarios
Corona Impact Revenue assumptions used for the “Medium” and “Low” scenarios: ▪ The below table illustrates the China & South Korea revenue developments during Q1: China & South Korea (Euro 000) Jan Feb Mar Q1 2019 ACT 9,255 6,215 9,327 24,796 2020 ACT 9,321 4,903 9,355 23,579 % decline YoY 1% -21% 0
Slide 20: Three Scenarios – KPI impact for Kongsberg Automotive
Corona Impact Three Scenarios – KPI impact for Kongsberg Automotive ▪ The below table provides the expected liquidity needs from the various scenario models: (Euro 000) 2020 High 2021 High 2020 Medium 2021 Medium 2020 Low 2021 Low Revenues 914,616 1,091,390 892,856 1,068,169 832,508 1,043,000 EBITDA
Slide 21: Sources of funding
Corona Impact Sources of funding Potentially very likely sources of Funds in € 000: Capital raise – private placement fully subscribed 64,000 expenses deducted, Capital raise – subsequent offering Gross amount: 0-28,000 14,000 middle of range selected Government loan Program (CH + smaller amounts fr
Slide 22: Conclusion
Conclusion Conclusion ▪ Since 2016, following a turn-around, Kongsberg Automotive (KA) developed into a healthy business and achieved above-market revenue growth through strong new business wins, more than doubling of adj. EBIT margins and tripling of absolute adj. EBIT amounts through operational i
Slide 23: Capital Raise – Private Placement & Repair Issue
Conclusion Capital Raise – Private Placement & Repair Issue ▪ Due to the strong decline in business driven by the effects of the Corona virus, Kongsberg Automotive is in need of significant additional liquidity. ▪ Prior to launching the capital raise (private placement and subsequent offering/repair
Slide 24: Capital Raise – Private Placement & Repair Issue
Conclusion Capital Raise – Private Placement & Repair Issue ▪ The subsequent offering, repair issue, will be in the form of a rights offering. Each share held prior to the “ex-date” will entitle the holder to a certain number of subsequent offering shares at NOK 0.10. The subsequent offering will be
Slide 25: EGM – registration of advance votes and proxies
EGM EGM – registration of advance votes and proxies ▪ Shareholders are encouraged to vote for their shares prior to the EGM on 15 June 2020 ▪ Due to the corona pandemic and meeting restrictions, shareholders are urged not to attend the EGM in person ▪ Shareholders may vote in advance or deliver a pr
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