Kongsberg Automotive Asa · OSL:KOA

Kongsberg Automotive Asa — Investor Presentation (April 2020)

28 slides from Kongsberg Automotive Asa's investor presentation, April 2020

  1. Slide 1: Kongsberg Automotive Investor Presentation April 2020

    Kongsberg Automotive Investor Presentation April 2020

  2. Slide 2: 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,

  3. Slide 3: 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 –

  4. Slide 4: Key investment highlights

    Investment Highlights Kongsberg Automotive Key investment 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  Str

  5. Slide 5: Management Team

    Management Team Kongsberg Automotive Management team Virginia Grando, EVP Quality, Zürich, Linda Nyquist-Evenrud, SVP Couplings, Raufoss, Bob Riedford, President P&C, Zürich, Switzerland Norway Switzerland With KA since: November 2017 With KA since: January 2008 With KA since: January 2016 Sales & M

  6. Slide 6: Kongsberg Automotive at a glance (1/2)

    Who we are Kongsberg Automotive at a glance (1/2) 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

  7. Slide 7: 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

  8. Slide 8: 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

  9. Slide 9: New Business Wins – KA Group

    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 65 299 €m €m 60 300 40 200 20 100 0 0 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-

  10. Slide 10: Book-to-bill 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 Business Wins 1,438 Revenu

  11. Slide 11: 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 y

  12. Slide 12: 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

  13. Slide 13: Three Scenarios – Revenue impact for Kongsberg Automotive

    Corona Impact Three Scenarios – Revenue impact for Kongsberg Automotive  As mentioned, we have modeled three scenarios: Revenues High case Medium Case Low case 2019 (for reference) €1,161 million €1,161 million €1,161 million 2020 € 914.6 million €877.9 million €818.2 million This assumes shutdowns

  14. Slide 14: 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

  15. Slide 15: 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 1,091,390 877,662 1,068,169 818,231 1,043,000 EBITDA

  16. Slide 16: Sources of funding

    Corona Impact Sources of funding Potentially likely sources of Funds in € 000: Capital raise Gross amount: 110,000-120,000* 108,000 expenses deducted Government loan Program (CH + smaller amounts from others) 450 potential for more Loan backed with Guarantor Assets 17,250 under negotiation Supply Ch

  17. Slide 17: Debt overview and Bond & RCF Indentures

    Debt overview and Bond & RCF Indentures  2019 Year End NIBD amounted to €256 million of which €271 million Bond, €10 million RCF, €25 million cash excluding IFRS16 related liabilities  Bond and RCF maturity: July 2025  €20 million out of the €70 million RCF matures in October 2021  Bond Coupon:

  18. Slide 18: 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 improvements

  19. Slide 19: Backup Slides

    Backup Slides & KONGSBERG AUTOMOTIVE 19

  20. Slide 20: Interior Comfort Systems

    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% –

  21. Slide 21: Transmission control

    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

  22. Slide 22: Air Couplings

    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

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: Additional Sources of funding

    Corona Impact Additional Sources of funding Additional sources of Funds (in Euro millions): Subsidies/loans from governments 4.5-10.0 (CH/NO/DE/US) Loan backed with Guarantor Assets 10.0-20.0 RCF increase 0.0-10.0 Norwegian “Statens Obligasjonsfond” bonds 50.0-70.0 Expensive debt Divestitures (1 or

  27. Slide 27: Leadership team

    Kongsberg Automotive Leadership team CEO Henning Jensen Legal & IP CFO Jon Munthe Norbert Loers HR & Communications Purchasing Marcus von Pock Dzeki Mackinovski Quality IT Virginia Grando Doug Tushar Powertrain & Chassis Specialty Products Interior Bob Riedford Henning Jensen Ralf Voss Off Highway R

  28. 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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