Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Q4 2016 Earnings Presentation
22 slides from Kongsberg Automotive Asa's earnings presentation, Feb 28, 2017
Slide 1: Kongsberg Automotive ASA Fourth quarter 2016
Kongsberg Automotive ASA Fourth quarter 2016 | February 28, 2017
Slide 2: Highlights for Q4 2016
Highlights for Q4 2016 • Revenues of MEUR 249.8 in Q42016, up MEUR 1.5 from Q4 2015, including negative translation currency effects of MEUR 1.8 Revenues • Annualized business wins in the fourth quarter amounted to MEUR 118 bringing the total business wins for 2016 to MEUR 282. • Adjusted EBIT was M
Slide 3: Market Summary
&K KONGSBERG AUTOMOTIVE
Slide 4: New business wins in Q4 2016
New business wins in Q4 2016 - Continued good order intake New business wins per quarter (per annum value) EUR Million 140 127 118 120 100 80 71 68 69 60 60 53 36 40 20 0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 New business wins LTM (per annum value) EUR Million 350 318 321 319 293 301 290 291 300 2
Slide 5: Market summary
Market summary Global Light Vehicle production 25 Millions 24 ▸ Light Vehicle production up 4.8% in Q4 2016 23 22 – Growth in China (+10.1%) , in Europe (+2.6%) and in North 21 America (+1.9%) 20 19 – 3.9% growth in FY2016 to 92.4 million vehicles 18 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3
Slide 6: Operational Summary
&K KONGSBERG AUTOMOTIVE
Slide 7: Segment financials Q4 2016
Segment financials Q4 2016 Revenues and EBIT margin MEUR and percent Interior Driveline Driver Control Fluid Revenues Revenues Revenues Revenues 86 88 77 78 73 69 65 67 58 60 61 61 61 60 56 52 54 55 48 50 EBIT EBIT EBIT EBIT 10.1% 8.8% 6.4% 14.3% 15.2% 15.8% 15.4% 15.2% 2.8% 6.7% 6.3% 6.4% 0.2% 0.4%
Slide 8: Initiatives taken in Q4 2016
Initiatives taken in Q4 2016 ▸ KA outlined its plan, among other initiatives, to improve its performance and substantially reduce costs at its CMD in November 2016. We are progressing nicely. – The plan has three pillars: • Organizational Structure, Centralization • Improve Cost Competiveness • Acti
Slide 9: Operational update: Interior Systems
Operational update Interior Systems ▸ Revenues of MEUR 78.1 in Q4, down MEUR 7.4 compared to 4Q15 – Negative currency effects of MEUR 0.6 – Lower sales in global headrests due to programs phasing out and the Outdoor Power Equipment (OPE) segments ▸ EBIT was MEUR 2.2 in Q4, down MEUR 6.5 compared to
Slide 10: Operational update: Driveline
Operational update Driveline ▸ Revenues of MEUR 61.3 in Q4, up MEUR 3.6 from 4Q15 – Negative currency effects of MEUR 0.4 – Higher sales in China and Europe business partially offset by North American business that declined – Driving the increase in revenues was a higher level of new programs coming
Slide 11: Operational update: Fluid Transfer
Operational update Fluid Transfer ▸ Revenues of MEUR 50.0 in Q4, down EUR 1.9 mill. from 4Q15 – Negative currency effects of EUR 0.9 million – Weakness in the North American and Europe partially offset by higher tooling sales ▸ EBIT was MEUR 7.6 in Q4, up EUR 0.2 mill compared to 4Q15 – Lower fixed
Slide 12: Operational update: Driver Control
Operational update Driver Control ▸ Revenues of MEUR 69.2 mill. in Q4, up MEUR 8.1 compared to 4Q15 – The increases in sales was driven by other revenues and growth in vehicle dynamics in both Europe and Asia ▸ EBIT declined MEUR 5.0 in Q4, to MEUR - 0.9 in 4Q15 – Restructuring costs of MEUR 4.1 – U
Slide 13: Financial Update
Norbert Loers Financial Update 13
Slide 14: Revenue and EBIT
Revenue and EBIT Revenues Adjusted EBIT and Adjusted EBIT margin MEUR MEUR and percent 257 251 250 248 4.8% 4.9% 228 3.6% 11.8 12.6 3.0%* 9.1 7.4* 0.6% ‐0.3%* ‐0.8* 1.6 ‐2.2% ‐5.0 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 * Results adjusted for restructuring cos
Slide 15: Revenue development
Revenue development Revenues MEUR Revenue: 260.0 ‐1.0 ‐1.8 8.0 ► MEUR 1.5 (0.6%) above 250.0 ‐6.9 4.0 ‐1.0 the fourth quarter 2015 240.0 ► Higher other revenues 230.0 offset by lower product 248.3 249.8 sales 220.0 ► Head-restraint and Outdoor 210.0 Power Equipment 200.0 ► New programs Q4 Interior*
Slide 16: EBIT development
EBIT development EBIT MEUR ‐6.1 12.0 9.0 0.3 ‐1.3 1.8 0.9 ‐5.8 6.0 11.8 3.0 1.6 0.0 Q4 Interior* Driveline* Fluids* DCS* Others/FX Restruc. Q4 2015 2016 Adjusted EBIT: MEUR 7.4, MEUR 4.5 (-37.7%) below fourth quarter 2015 * Variances excluding FX translation effects and restructuring costs
Slide 17: Net Profit development
Net Profit development Net Profit MEUR 15.0 10.0 Net profit: 5.0 ‐1.0 ‐4.5 Influenced by lower EBIT 0.0 ► ‐5.8 ‐5.0 8.9 ‐7.4 and unrealized and 0.3 ‐4.8 realized FX effects ‐10.0 ‐0.6 ‐15.0 ► Positive tax development ‐20.0 reflecting a lower profit Q4 EBIT Restr. Interest FX Effects Others Tax Q4 be
Slide 18: Free Cash Flow
Free Cash Flow Free Cash Flow MEUR 17 Fourth quarter Free Cash Flow before debt 15 13 repayments: ► Positive change in net working capital 4 ► Decrease in taxes paid 2 ► Investments ‐4 ‐6 ‐10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2015 2015 2015 2016 2016 2016 2016
Slide 19: Financial ratios
Financial ratios ROCE (Ltm) Adjusted NIBD/EBITDA* (Ltm) Percent Times 2.8 2.8 2.2 2.4 2.3 7.1%* 6.2%* 9.5% 7.0% 6.1% 6.2% 4.0% Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Equity ratio Avg. Capital Employed and turnover (Ltm) Percent MEUR and Times 32.4% 32.7% 2.18
Slide 20: Financial items
Financial items Net financial items MEUR Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 7.1 Net financial items: 4.2 ► Unfavorable currency effects drove 9.0 6.1 the increase in net finance costs 0.1 1.5 ‐1.8 ‐1.7 ‐1.8 ‐1.5 ‐1.7 ► Lower interest bearing debt and ‐0.1 ‐0.3 ‐0.2 ‐3.0 (0.5) interest rates dro
Slide 21: Summary & Outlook
&K KONGSBERG AUTOMOTIVE ‘ ae i? pane r] pnd s / C / / / :
Slide 22: Summary
Summary ▸ Initiatives taken according to plan outlined at CMD – 3 distinct segments established; leadership teams & organizations in place – Closure of the manufacturing facility in Basildon, UK – Headquarters established in Zürich (Switzerland) – Divestiture of the North American Head and Armrest b