Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Q4 2022 Earnings Presentation
32 slides from Kongsberg Automotive Asa's earnings presentation, Mar 14, 2023
Slide 1: Kongsberg Automotive Q4 2022 Earnings Call
KONGSBERG AUTOMOTIVE Q4 2022 EARNINGS CALL MARCH 14, 2023
Slide 2: Forward-Looking Statements and Non-IFRS Measures
Kongsberg Automotive Q4 2022 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 in
Slide 3: Today's Presenters and Agenda
Kongsberg Automotive Q4 2022 Earnings Call TODAY’S PRESENTERS AGENDA EXECUTIVE SUMMARY MARKET UPDATE FINANCIAL UPDATE SHIFT GEAR UPDATE OUTLOOK Q&A JOERG BUCHHEIM FRANK HEFFTER CEO // Zurich (Switzerland) CFO // Zurich (Switzerland) KONGSBERG AUTOMOTIVE // 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY
Slide 5: Executive Summary – Q4 2022
Executive summary Updated by EXECUTIVE SUMMARY – Q4 2022 Group Finance REVENUES, EARNINGS AND CASH POSITION IMPROVED €215.3M €11.0M 0.8x REVENUES ADJ. EBIT L E V E R A G E R A T I O 1,2 Increase of 4.7% vs. Q4 2021 Increase by MEUR 2.8 vs. Q4 2021 Improved from 4.2x in Q4 2021 €224.3M €84.5M €54.7M
Slide 6: Executive Summary – FY 2022
Executive summary EXECUTIVE SUMMARY – FY 2022 DELEVERAGING PROVIDES FUTURE FINANCIAL STABILITY €905.6M €35.6M 0.8x REVENUES ADJ. EBIT L E V E R A G E R A T I O 1,2 Increase of 8.9% vs. FY 2021 Decrease by MEUR 15.1 vs. FY 2021 Improved from 4.2x in 2021 €760.2M €76.5M €54.7M NEW BUSINESS3 FREE CASH
Slide 7: At a Glance: Business Segments Update
Executive summary AT A GLANCE BUSINESS SEGMENTS UPDATE POWERTRAIN & CHASSIS SPECIALTY PRODUCTS REVENUES, MEUR NEW BUSINESS WINS REVENUES, MEUR NEW BUSINESS WINS 123 129 95 93 95 108 45 28 Q4 2021 Q4 2022 Q4 2022 Q4 2022 Q4 2021 Q4 2022 Q4 2022 Q4 2022 Annualized Lifetime Annualized Lifetime ADJUSTED
Slide 8: Market Update
MARKET UPDATE
Slide 9: Market Trends
Market update MARKET TRENDS HIGHER PRODUCTION OF PASSENGER CARS, A DECLINE FOR COMMERCIAL VEHICLES IN CHINA MARKET DEVELOPMENT REGION Q4-22 vs. Q4-21 2022 vs. 2021 GLOBAL PASSENGER CAR PRODUCTION, million units China -6.2% +6.1% +1.7% APAC w/o China +9.8% +9.8% 23,6 20,7 21,2 21,5 21,5 18,7 19,9 19,
Slide 10: Challenging Global Market Situation
Market update CHALLENGING GLOBAL MARKET SITUATION ENERGY PRICES COMING OFF HIGHS – GLOBAL INFLATION STILL ON A HIGH LEVEL CURRENT TRIGGERS MACROECONOMIC FACTORS AFFECTING FOR DISRUPTION GLOBAL MARKET ENVIRONMENT Energy prices in Europe showing reduction after ENERGY PRICES/INFLATION peaking in Q4 20
Slide 11: Macroeconomic Uncertainty, Positive Development for KA within Commercial Vehicles
Market update MACROECONOMIC UNCERTAINTY POSITIVE DEVELOPMENT FOR KA WITHIN COMMERCIAL VEHICLES REVENUE GROWTH VS MARKET GROWTH IN Q4* OUTPERFORMANCE IN KEY MARKETS EURO P E > Due to the right brands and product mix, KA outperformed the KA MARKET market growth in the Commercial Vehicle segment. KA MA
Slide 12: Book-to-Bill
Market update BOOK-TO-BILL CUSTOMER ACTIVITY INCREASED AFTER THE MACROECONOMIC UNCERTAINTY BOOK-TO-BILL PERFORMANCE, MEUR NBW (lifetime sales LTM) Book-to-bill ratio (incl BRP) Revenues (LTM) Book-to-bill ratio (excl BRP) 1,2 1,1 1,0 1,0 1,0 1,0 1,0 0,9 1,2 0,8 0,9 0.9 0.8 0.8 0.8 0.8 0,8 0.7 906 83
Slide 13: Financial Update
FINANCIAL UPDATE
Slide 14: Revenues
Financial update REVENUES SOLID Q4 REVENUES QUARTERLY REVENUES (continuing operations), MEUR 246 2019 224 226 218 219 216 215 215 2020 209 202 202 206 2021 193 187 2022 179 112 2019 2020 2021 20221 2019 2020 2021 20221 2019 2020 2021 20221 2019 2020 2021 20221 Q1 Q2 Q3 Q4 1 Quarterly revenues in 202
Slide 15: Adjusted EBIT
Financial update ADJUSTED EBIT EARNINGS IN ACCORDANCE WITH GUIDANCE QUARTERLY ADJ. EBIT (continuing operations), MEUR and % of revenues 2019 2020 2021 2022 2019 2020 2021 2022 23,7 10.6% 21,4 9.8% 8.6% 18,1 18,0 8.4% 7.0% 5.6% 12,9 12,6 12,8 5.7% 11,6 11,3 4.7% 11,0 6.0% 5.2% 5.1% 8,9 4.2% 4.0% 7,7
Slide 16: Q4 2022 Earnings
Financial update Q4 2022 EARNINGS ADJUSTED EBIT AND NET INCOME INCREASED, DESPITE INFLATIONARY PRESSURE ADJUSTED EBIT (continuing operations), MEUR NET INCOME (continuing operations), MEUR -0.3 11.0 +0,6 -3.6 -3.2 +0.7 +0.8 -8.4 +2,5 +30,6 8.2 -5.7 13.2 +2.8 Q4 2021 P&C SPP Currency Q4 2022 -0,8 eff
Slide 17: Free Cash Flow
Financial update FREE CASH FLOW SUBSTANTIALLY IMPROVED CASH POSITION FREE CASH FLOW 1 , MEUR Q4 2022 FCF DETAILS Operating activities +49.9 Therein: NWC decrease +52.7 (continued only) Investing activities +54.7 Proceeds for assets sold to BRP +62.9 +76.5 +84.5 Financing activities -16.9 Therein: +1
Slide 18: Total Cash Flow in Q4
Financial update TOTAL CASH FLOW IN Q4 INCLUDING SHARE AND BOND BUY-BACK CONTINUING AND DISCONTINUED OPERATIONS TOTAL CASH FLOW, MEUR CONTINUING OPERATIONS Mainly share buy-back DISCONTINUED OPERATIONS (MEUR 9.4) and payment of interests Proceeds from the true-up on 55.9 of bond (MEUR 5.0) the sale
Slide 19: Total Cash Flow in 2022
Financial update TOTAL CASH FLOW IN 2022 CONTINUING AND DISCONTINUED OPERATIONS Mainly net of investing expenditures of MEUR 26.5 and proceeds of MEUR 62.9 TOTAL CASH FLOW, MEUR for sale of intangibles and tangibles to BRP CONTINUING OPERATIONS 202.6 DISCONTINUED OPERATIONS Mainly proceeds for intan
Slide 20: Liquidity Development
Financial update LIQUIDITY DEVELOPMENT SOLID LIQUIDITY POSITION CONTINUING AND DISCONTINUED OPERATIONS LIQUIDITY DEVELOPMENT, MEUR CASH UNUTILIZED SECURITIZATION FACILITY UNDRAWN RCF +1.2 -2.6 -2.1 -4.4 -9.4 -13.2 287.9 +63,5 -0.6 -9.7 +59,0 212.9 +15,2 -8.3 210.0 -10.8 135.0 25.0 25.0 50.0 50.0 Q3
Slide 21: Financial Ratios
Financial update FINANCIAL RATIOS CONTINUING AND DISCONTINUED OPERATIONS ADJUSTED GEARING RATIO 1,2 , NIBD 3 /ADJUSTED EBITDA, LTM ADJUSTED ROCE 2 , %, LTM EXCLUDING IFRS16 INCL. IFRS 16 EFFECT 3,8 6,8 3,3 6,7 6,3 2,4 4,4 4,7 4,4 2,0 2,0 4,3 4,0 1,5 3,5 3,6 1,1 1,1 0,8 -0.3 Q4 2021 Q1 2022 Q2 2022 Q
Slide 22: Shift Gear Update
SHIFT GEAR UPDATE
Slide 23: Extraordinary Performance in Shift Gear Improvement
Shift Gear update GEAR I EXTRAORDINARY PERFORMANCE IN SHIFT GEAR PERFORMANCE IMPROVEMENT - FULL YEAR BENEFITS OF MEUR 63 IN 2022 IMPROVEMENT FY 2022 MEASURE IMPACT DEVELOPMENT BY CALENDAR WEEK, MEUR > SG1 performance improvements APPROVED offsetting majority of the supply chain, inflation, and volum
Slide 24: Outlook
OUTLOOK
Slide 25: Divestments in 2022
Outlook DIVESTMENTS IN 2022 RECEIVED ~ MEUR 300 IN NET PROCEEDS SALE OF INTERIOR COMFORT SYSTEMS SALE OF LIGHT DUTY CABLES SALE OF POWERSPORT APPLICATIONS FULL YEAR 2021 FULL YEAR 2021 Q1-Q3 2022 €260M €(10.2)M €75.6M €3.4M €88.1M T R A N S A C€14.6M TION VALUE REVENUE (FY21) ADJ. EBIT REVENUE (FY21
Slide 26: Divestments Increased KA's Exposure to Commercial Vehicles
Outlook DIVESTMENTS INCREASED KA’S EXPOSURE TO COMMERCIAL VEHICLES REALIGNING TOWARDS HIGHER MARGIN SEGMENTS AND DELEVERAGING ON THE WAY REVENUES NIBD/EBITDA 0,8x EUR 0.8 BN NIBD/EBITDA EUR 1.1 BN 3,8x CASH 9% 51 CASH 15% 213 34% After the divestments in 45% 2022, KA’s exposure to the 40% non-passen
Slide 27: Market Forecasts
Outlook MARKET FORECASTS GLOBAL PASSENGER CAR PRODUCTION, sales in million units INCLUDING CHINA EXCLUDING CHINA +4% +12% +5% +11% 85 88 91 92 58 60 62 62 77 82 52 56 2021 2022 2023 2024 2025 2026 2021 2022 2023 2024 2025 2026 GLOBAL COMMERCIAL VEHICLES PRODUCTION, sales in thousand units INCLUDING
Slide 28: Outlook 2023: Expect Continued Revenue and EBIT Growth
Outlook OUTLOOK 2023 EXPECT CONTINUED REVENUE AND EBIT GROWTH Despite expectations of an increase in the production of passenger GLOBAL SITUATION cars and light commercial vehicles, global inflation is still at high levels and will, to some extent, affect KA’s profitability in the short term. KA has
Slide 29: Outlook 2023: Revenue and Adj. EBIT Guidance Increased
Outlook OUTLOOK 2023 REVENUE AND ADJ. EBIT GUIDANCE INCREASED, ADJUSTED FOR DIVESTMENTS REVENUES, MEUR ADJ. EBIT, MEUR 905.6 35.6 Revenues 88,1 880-900 Powersport (BRP) 25-30 Adj. EBIT Powersport (BRP) 14,6 Revenues excl. Powersport 817,5 Adj. EBIT excl. Powersport 21,0 FY 2022 FY 2023 (guidance) FY
Slide 30: On the Agenda for 2023
Outlook ON THE AGENDA FOR 2023 Initiate a strategic review of the company KA, together with the Board of Directors, has decided to initiate a dedicated strategic review of the company. The aim is to unlock the full potential of the business beyond the current performance. KONGSBERG AUTOMOTIVE // 30
Slide 31: Q&A
Q&A
Slide 32: Mobility Solutions for the Future
MOBILITY SOLUTIONS FOR THE FUTURE