Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Investor Presentation (May 2020)
34 slides from Kongsberg Automotive Asa's investor presentation, May 19, 2020
Slide 1: Kongsberg Automotive Investor Presentation
Kongsberg Automotive Investor Presentation May 19th, 2020
Slide 2: Important notice and disclaimer
Important notice and disclaimer This document has been produced solely for use at the presentation to potential investors held in connection with a proposed private placement of new shares and convertible bonds in Kongsberg Automotive ASA (the "Company", together with its subsidiaries the "Group").
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 An investment in the Company's shares (the "Shares") or the contemplated issue of convertible bonds (the "Convertible Bonds") in the Company involves inherent risk. Any potential investor in the Company should carefully consider the risk factors set out below in addition to the informat
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 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
Slide 10: 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
Slide 11: 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
Slide 12: 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
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 Gross amount: 62,000-89,000 75,000 expenses deducted, middle of range selected Government loan Program (CH + smaller amounts from others) 4,000 In addition to already approved grants/loans Factoring Sca
Slide 22: Debt overview and Bond & RCF Indentures
Debt 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
Slide 23: 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 24: Backup Slides
Backup Slides NS KONGSBERG AUTOMOTIVE VY 24
Slide 25: 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% –
Slide 26: 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
Slide 27: 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
Slide 28: 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 29: 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 implement practices that an
Slide 30: Corporate Responsibility – Highlights and Key Figures
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 in production output, the
Slide 31: Additional Sources of funding
Additional Sources of funding Additional sources of Funds (in Euro millions): Supply Chain Financing 5.0-10.0 Could be more if loans Loan backed with Non Guarantor & Guarantor 20.0-40.0 Assets RCF increase or better utilization of the RCF 0.0-40.0 Norwegian “Statens Obligasjonsfond” bonds 50.0-70.0
Slide 32: Quarterly CF estimations
Quarterly CF estimations All figures in Euro 000 except where noted Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 External revenues (last view) 262,055 138,553 227,082 265,165 892,856 280,100 271,395 258,081 258,593 1,068,169 CF with no liquidity actions: BB Cash +2
Slide 33: 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
Slide 34: 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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