Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Kongsberg Automotive New — Q2 2025 Earnings Presentation
31 slides from Kongsberg Automotive Asa's earnings presentation, Aug 12, 2025
Slide 1: Q2 2025 Earnings Call Presentation
Q2 2025 EARNINGS CALL PRESENTATION AUGUST 12, 2025
Slide 2: Forward-Looking Statements and Non-IFRS Measures
2 Kongsberg Automotive Q2 2025 Earnings Call 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
Slide 3: Today's Presenters and Agenda
3 Kongsberg Automotive Q2 2025 Earnings Call TODAY’S PRESENTERS AGENDA EXECUTIVE SUMMARY MARKET UPDATE FINANCIAL UPDATE SUMMARY & OUTLOOK Q&A TROND FISKUM ERIK MAGELSSEN PRESIDENT & CEO CFO
Slide 4: Executive Summary
4 EXECUTIVE SUMMARY
Slide 5: Kongsberg Automotive Turnaround Initiated to Deliver Long-Term Value
5 Executive summary KONGSBERG AUTOMOTIVE TURNAROUND INITIATED TO DELIVER LONG-TERM VALUE > Launched an additional cost reduction program of 15 MEUR annual impact > Renewed executive leadership team and reinforced a performance-oriented KA culture > Closure of Zurich office > Consolidation of Sweden
Slide 6: Strategic Acquisition of Chassis Autonomy Positioning KA for Long-Term Growth
6 Executive summary STRATEGIC ACQUISITION OF CHASSIS AUTONOMY POSITIONING KA FOR LONG-TERM GROWTH Chassis Autonomy, based in Trollhättan, Sweden, develops L4-5 AUTONOMOUS steer-by-wire road wheel actuators and holds 31 patents L3 HIGHLY AUTOMATED L4-5 AUTONOMOUS HEAVY GOODS AND PASSENGER VEHICLES SH
Slide 7: Q2 Financials – EBIT Impacted by Revenue Decline and Warranty Accruals
7 Executive summary Q2 FINANCIALS – EBIT IMPACTED BY REVENUE DECLINE AND WARRANTY ACCRUALS. POSITIVE TREND ON CASH FLOW MAINTAINED REVENUES MEUR 209,3 190,0 192,4 > Q2 revenues down -8.1% from Q2 2024, 185,2 181,6 including negative currency impact of MEUR -5.5. Reduction a direct result of a 3,1 %
Slide 8: Improved Cost Base
8 Executive summary IMPROVED COST BASE REDUCTION IN INDIRECT COST BASE ONGOING Reduction of >500 indirect cost MEASURES IN 2024 positions, a reduction of > OVERHEAD COST REDUCTION approximately 20% of indirect cost ~17 M€ > SUPPORT FUNCTION OPTIMIZATION positions from Q1 2024 until the programs are
Slide 9: Business Wins Q2 2025
9 Executive summary BUSINESS WINS Q2 2025 LIFETIME REVENUES, MEUR 91.1M€ PER BUSINESS AREA PER CUSTOMER SEGMENT FLOW CONTROL SYSTEMS 29.8 48.6 PASSENGER CARS TRUCK, TRAILER, 49.0 42.5 BUS DRIVE CONTROL 3.5 SYSTEMS 8.8 OFF-ROAD* INDUSTRIAL > Tariffs and market uncertainty has led to a slowdown in the
Slide 10: New Contract for Dog Clutch Actuator in EV Segment
10 Executive summary DRIVE CONTROL SYSTEMS A NEW CONTRACT FOR DOG CLUTCH ACTUATOR (DCA) IN FAST-GROWING EV SEGMENT APPROX. MEUR 20 IN ESTIMATED LIFETIME REVENUE ANNOUNCED ON MAY 7, 2025 > ROBUST AND DURABLE DESIGN > MAXIMUM COMFORT AND PERFORMANCE FOR THE DRIVER > BOTH SHIFTING AND DE-COUPLING > SPA
Slide 11: Tariffs Impact and Mitigation Actions
11 Executive summary TARIFFS IMPACT AND MITIGATION ACTIONS > The tariff costs in Q2 are in the range of MEUR 2.7, of which MEUR 0.7 has so far been reimbursed by customers > Ongoing engagement with customers to recover all tariff-related costs. Process takes time due to customer documentation requir
Slide 12: New Company Structure and Executive Leadership Team
12 Executive summary NEW COMPANY STRUCTURE AND EXECUTIVE LEADERSHIP TEAM AIMED AT ENHANCING BUSINESS PERFORMANCE, OPERATIONAL EFFICIENCY AND ACCOUNTABILITY ACROSS THE COMPANY Previous structure New structure CEO CEO CFO Legal CFO Legal (incl. IT and IR) HR HR Sales Business Business Purchase Ops EX
Slide 13: Enhancing Footprint Efficiency and Innovation
13 Executive summary ENHANCING FOOTPRINT EFFICIENCY AND INNOVATION CLOSING LJUNGSARP PLANT AND MOVING ALL OPERATIONS TO MULLSJÖ > Consolidating production and knowledge > Utilizing existing infrastructure and fully owned production locations in Mullsjö > Strengthening the operational capabilities >
Slide 14: Closure of Zurich Office
14 Executive summary CLOSURE OF ZURICH OFFICE > Following a strategic decision by KA’s Executive Leadership Team, the Zurich office will be closed by 31 March 2026 > This decision aligns with the relocation of KA’s headquarters to Kongsberg and reflects a broader review of the company’s global footp
Slide 15: Positioning KA for Growth in China
15 Executive summary POSITIONING KA FOR GROWTH IN CHINA - KA TAKES FULL OWNERSHIP OF JV IN CHINA > We are pleased to announce that Kongsberg Automotive in July 2025 acquired the remaining 25% of shares in our joint venture in China, Kongsberg Automotive Morse Shanghai Co. Ltd., from our partner DETC
Slide 16: Key Priorities 2025
16 Executive summary KEY PRIORITIES 2025 FURTHER COST BASE ADJUSTMENTS > The priorities were communicated during Q1 2025 Earnings Call in May IMPROVED CASH FLOW > Since then, until today, KA has taken decisive steps to deliver STRENGTHENING THE LEADERSHIP TEAMS on these priorities AND KA CULTURE INN
Slide 17: Market Update
17 MARKET UPDATE
Slide 18: Market Growth Forecasted in the Next Coming Years (2026-2029)
18 Market update MARKET GROWTH FORECASTED IN THE NEXT COMING YEARS (2026-2029) CHINA NORTH AMERICA EUROPE 1,590 710 656 31.1 31.1 607 526 31.6 477 536 1,327 GLOBAL 15.5 17.9 1,260 4,119 14.6 14.5 16.7 16.7 3,510 24 25 26 27 28 29 24 25 26 27 28 29 24 25 26 27 28 29 94.6 3,306 89.2 89.5 SOUTH AMERICA
Slide 19: Financial Update
19 FINANCIAL UPDATE
Slide 20: Flow Control Systems
20 Financial update FLOW CONTROL SYSTEMS BUSINESS AREA UPDATE Q2 2025 vs. Q2 2024 > Revenues: REVENUES, MEUR 79,7 79,3 82,2 > Negative translation effects of MEUR -1.7 71,4 73,4 > Higher sales in the European and North American commercial vehicle markets > Higher sales of industrial applications in
Slide 21: Drive Control Systems
21 Financial update DRIVE CONTROL SYSTEMS BUSINESS AREA UPDATE Q2 2025 vs. Q2 2024 > Revenues: REVENUES, MEUR > Negative translation of MEUR -2.4 95,6 82,3 > Increased sales in the European heavy-duty vehicles 80,9 79,9 81.5 market > Declined revenues in commercial vehicle markets in China and North
Slide 22: EBIT Bridge (Q2 & H1)
22 Financial update EBIT BRIDGE (Q2 & H1) LOWER PROFIT DUE TO VOLUME & MIX AND INCREASED ACCRUALS Q2 2025 vs. Q2 2024 FOR ESTIMATED FUTURE WARRANTY EXPENSES EBIT (Q2), MEUR VOLUME & MIX > Reduced contribution due to lower revenue levels in -2.0 6,4 +1.5 +6,5 Drive Control Systems, partially offset b
Slide 23: Net Income Bridge (Q2 & H1)
23 Financial update NET INCOME BRIDGE (Q2 & H1) EBIT DECLINE PARTIALLY OFFSET BY LOWER TAX BURDEN 3,7 NET INCOME (Q2), MEUR NET INTERESTS -9.3 > Interest expenses remained at the similar level -2.0 compared to Q2 2024, less interest income +6.2 -0.6 +0.7 -2,7 CURRENCY GAINS/LOSSES > The net currency
Slide 24: Free Cash Flow
FREE CASH FLOW 24 Financial update Q2 2025 Q2 2024 FREE CASH FLOW Operating activities +17.7 +8.7 FREE CASH FLOW IN Q2 AND H1 IMPROVED Investing activities -3.6 -4.1 Financing activities -6.1 -65.3 FREE CASH FLOW1 , MEUR 12M Trend3 Currency and translation effects on cash flow3 -8.9 -1.2 Total -0.9
Slide 25: Net Interest-Bearing Debt (NIBD) & Leverage Ratio
25 Financial update NET INTEREST-BEARING DEBT (NIBD) & LEVERAGE RATIO NIBD RELATIVELY STABLE SINCE REFINANCING IN Q2 2024, LEVERAGE RATIO INCREASE REFLECT WEAKER EARNINGS FROM SOFTER DEMAND NIBD/ Adjusted EBITDA (LTM)1 Adjusted EBITDA (LTM)1 NIBD Leverage ratio per bond term definition 2 NET-INTERES
Slide 26: Financial Ratios
26 Financial update FINANCIAL RATIOS LEVERAGE RATIO, NIBD 1/ ADJUSTED EBITDA 4 , LTM ROCE 2, %, LTM NIBD/ Adjusted EBITDA (LTM) Leverage ratio per bond term definition 5.8 3,7 3,1 3,1 2,4 2,5 2,7 3,3 1,9 2,1 2,1 1,7 1,7 0.5 -0,8 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025
Slide 27: Summary & Outlook
27 SUMMARY & OUTLOOK
Slide 28: Summary
28 Summary & Outlook SUMMARY > EBIT in Q2 2025 impacted by revenue decline and increased warranty accruals > Positive trend on Cash Flow > Additional cost reduction initiated – the full impact of cost reduction programs to take full effect during 2026 with EBIT improvements in the range of 4-5 % poi
Slide 29: Outlook
29 Summary & Outlook OUTLOOK > Despite a decline in sales volumes, the EBIT margin for H2 2025 is expected to surpass both H1 2025 and H2 2024 levels, supported by continued execution of cost-saving initiatives and operational efficiencies. > For H2 2025, the market outlook is not favorable. Revenue
Slide 30: Q&A Financial Calendar 2025
30 Q&A FINANCIAL CALENDAR 2025: > Quarter 3 Report 2025, November 5
Slide 31: kongsbergautomotive.com
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