Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Kongsberg Automotive New — Q1 2025 Earnings Presentation
32 slides from Kongsberg Automotive Asa's earnings presentation, May 7, 2025
Slide 1: Q1 2025 Earnings Call Presentation
Q1 2025 EARNINGS CALL PRESENTATION MAY 07, 2025
Slide 2: Forward-Looking Statements and Non-IFRS Measures
Kongsberg Automotive Q1 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 in
Slide 3: Today's Presenters and Agenda
Kongsberg Automotive Q1 2025 Earnings Call TODAY’S PRESENTERS AGENDA EXECUTIVE SUMMARY MARKET UPDATE FINANCIAL UPDATE SUMMARY & OUTLOOK Q&A TROND FISKUM CHRISTIAN JOHANSSON PRESIDENT & CEO CFO KONGSBERG AUTOMOTIVE3 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY 4
Slide 5: Introducing New CEO - Trond Fiskum
Executive summary INTRODUCING NEW CEO - TROND FISKUM > Trond Fiskum, appointed on March 31, 2025; based at Kongsberg Automotive HQ, Norway > MSc from NTNU, Trondheim & MBA from ESADE Business School, Barcelona > Relevant experience from KA - Held various leadership positions in KA during 2005 to 201
Slide 6: Lower Demand Drives Year-on-Year Decline in Revenues and EBIT
Executive summary LOWER DEMAND DRIVES YEAR-ON-YEAR DECLINE IN REVENUES AND EBIT > Q1 revenues down -10.9 %1 from Q1 2024 REVENUES 212.1 209.3 driven by lower demand. Revenue growth 185.2 190.0 +2.6 %from Q4 2024 181.6 > EBIT lower vs Q1 2024 primarily due to volume/mix and supplier warranty 4.8 % 3.
Slide 7: Revenues – Q1 2025 Decline Versus Q1 2024
Executive summary REVENUES – Q1 2025 DECLINE VERSUS Q1 2024 WHILE INCREASE VERSUS Q4 2024 NORTH ASIA SOUTH EUROPE 49%* TOTAL KA AMERICA 35%* (INCL. CHINA) 11%* AMERICA 5%* Q1 2025 VS Q1 2024 -10.3% -11.6% -17.9% +10.5% -10.9% Q1 2025 VS Q4 2024 +5.7% +4.3% -15.1% +10.4% +2.6% *OF KA REVENUES CHANGE
Slide 8: Increased Operational Efficiency
Executive summary INCREASED OPERATIONAL EFFICIENCY FURTHER COST BASE ADJUSTMENS REQUIRED TO IMPROVE EARNINGS MEASURES IN 2024 > OVERHEAD COST REDUCTION >17 M€ > SUPPORT FUNCTION OPTIMIZATION ONGOING MEASURES > REDUCTION OF ~1 50 POSITIONS ~10 M€ > ADDITIONAL ANNUAL SAVINGS OF AT LEAST MEUR 10 … ON T
Slide 9: Business Wins Q1 2025
Executive summary BUSINESS WINS Q1 2025 LIFETIME REVENUES, MEUR 136.6M€ PER BUSINESS SEGMENT PER AREA FLOW CONTROL SYSTEMS 110.3 PASSENGER 21.3 CARS 82.0 TRUCK, TRAILER, BUS 14.4 OFF-ROAD* 10.1 DRIVE CONTROL 25.9 SYSTEMS 0.4 8.8 INDUSTRIAL AFTERMARKET DRIVELINE * Includes agriculture, construction,
Slide 10: Contract Extension for Raufoss ABC System
Executive summary FLOW CONTROL SYSTEMS CONTRACT EXTENSION FOR RAUFOSS ABC SYSTEM AIR BRAKE FITTINGS OVER MEUR 58 IN ESTIMATED LIFETIME REVENUE ANNOUNCED ON MARCH 31, 2025 > MARKET LEADER FOR PUSH-IN BRAKE COUPLINGS > TRUSTED BY LEADING OEMs IN THE TRUCK, TRAILER AND BUS MARKET > LIGHTWEIGHT, DURABLE
Slide 11: Lower Business Wins After Extraordinary 2024
Executive summary LOWER BUSINESS WINS AFTER EXTRAORDINARY 2024, STRONG PIPELINE OF OPPORTUNITES Revenues Business Wins Incremental Business Wins Extensions Book-to-bill ratio (LTM in MEUR) (lifetime sales, LTM in MEUR) (lifetime sales, LTM in MEUR) 2.1 2.0 1.9 1.6 1.4 1,765 1,644 1.1 1,526 0.9 0.8 0
Slide 12: New Contract for Dog Clutch Actuator
Executive summary DRIVE CONTROL SYSTEMS NEW CONTRACT FOR DOG CLUTCH ACTUATOR (DCA) 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 > SPACE EFFICIENT > OUTSTANDING SERVI
Slide 13: Mitigating Impact of Changing Customs Tariff Landscape
Executive summary MITIGATING IMPACT AND ADAPTING TO A CHANGING CUSTOMS TARIFF LANDSCAPE > Tariffs imposed on imports to US from China, on all steel and aluminum imports, on all non-eligible USMCA parts and a global minimum tariff on other components > Task force in place since February to closely mo
Slide 14: Key Priorities 2025
Executive summary KEY PRIORITIES 2025 FURTHER COST BASE ADJUSTMENTS IMPROVED CASH FLOW STRENGTHENING THE LEADERSHIP TEAM INNOVATION AND PROFITABLE GROWTH 14
Slide 15: Market Update
MARKET UPDATE 15
Slide 16: Market Development
Market update MARKET DEVELOPMENT GLOBAL COMMERCIAL VEHICLES PRODUCTION, thousand units LOWER DEMAND IN Q1, FULL YEAR 2025 FORECAST REMAIN FLAT VS 2024, China Global excl China -3.8% NORTH AMERICA REDUCED, CHINA INCREASED 878 868 862 886 853 852 860 821 810 816 748 778 290 300 280 330 295 265 282 334
Slide 17: Q1 2025 vs Q1 2024: KA Versus Market
Market update Q1 2025 VS Q1 2024: KA VERSUS MARKET KA PERFORMED BETTER IN EUROPE AND NORTH AMERICA IN THE COMMERCIAL VEHICLE MARKET EUROPE 49% OF KA SALES CHINA NORTH AMERICA 8% OF KA SALES KA*** MARKET 35% OF KA SALES KA*** MARKET KA*** MARKET CV* -4.7% -11.7% CV* -20.1% +1.3% -13.0% -22.1% LV* -24
Slide 18: Strong Market Growth Forecasted 2026-2029
Market update STRONG MARKET GROWTH FORECASTED IN THE NEXT COMING YEARS (2026-2029) EUROPE CHINA NORTH AMERICA 1,523 708 631 647 31.1 600 30.7 31.8 494 555 15.7 17.9 1,296 GLOBAL 1,248 4,039 15.3 17.0 15.0 16.7 3,578 95.5 24 25 26 27 28 29 24 25 26 27 28 29 24 25 26 27 28 29 3,306 91.2 89.5 SOUTH AME
Slide 19: Financial Update
FINANCIAL UPDATE 19
Slide 20: New Segment Reporting Introduced
Financial update NEW SEGMENT REPORTING INTRODUCED ALLOCATION OF “CORPORATE & OTHER” SEGMENT TO REPORTABLE SEGMENTS EBIT MARGIN, % EBIT, MEUR BEFORE ALLOCATION OF CORPORATE & OTHER SEGMENT To give each segment full accountability for its 13.0% share of the Group’s costs, we now reallocated 7.3% every
Slide 21: Flow Control Systems
Financial update FLOW CONTROL SYSTEMS BUSINESS AREA UPDATE REVENUES, MEUR Q1 2025 vs. Q1 2024 82.7 79.7 79.3 71.4 73.4 > Revenues: > Lower sales in European commercial vehicle market due to weak market > Lower sales of industrial applications in North America > Positive development in North America’
Slide 22: Drive Control Systems
Financial update DRIVE CONTROL SYSTEMS BUSINESS AREA UPDATE REVENUES, MEUR Q1 2025 vs. Q1 2024 92.5 95.6 80.9 82.3 79.9 > Revenues: > Declining revenues in commercial vehicle markets in Europe and North America, still outperforming the market production output > Revenues drop in weak agriculture and
Slide 23: EBIT Bridge (Q1 2025 vs Q1 2024)
Financial update EBIT BRIDGE (Q1 2025 VS Q1 2024) LOWER PROFIT DUE TO VOLUME & MIX AND SUPPLIER SETTLEMENT ON WARRANTY CLAIM LAST YEAR EBIT, MEUR +1.5 VOLUME & MIX 10.1 -2.7 > Lost contributions from volume especially Driveline but also DCS and FCS COSTS AND OTHER -6.1 -0.8 > Supplier settlement on
Slide 24: Net Income Bridge (Q1 2025 vs Q1 2024)
Financial update NET INCOME BRIDGE (Q1 2025 VS Q1 2024) EBIT DECLINE PARTIALLY OFFSET BY IMPROVED CURRENCY NET AND LOWER TAX BURDEN NET INCOME, MEUR -0.4 NET INTERESTS > Interest expenses remained at the similar level compared to Q1 2024, less interest income -2.2 +2.3 CURRENCY GAINS/LOSSES > Curren
Slide 25: Free Cash Flow
Financial update FREE CASH FLOW FREE CASH FLOW IMPROVED IN QUARTER 1 , BUT IS STILL NEGATIVE FREE CASH FLOW 1 , MEUR 12M Trend3 FREE CASH FLOW Q1 2025 Q1 2024 Operating activities +1.7 -1.9 +4.8 +4.5 +4.2 Investing activities -3.9 -5.3 -4.4 -5.2 Financing activities -6.6 -10.9 -10.5 -13.3 -14.9 Curr
Slide 26: Net Interest-Bearing Debt (NIBD) & Leverage Ratio
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 Leverage ratio Adjusted EBITDA (LTM) NIBD NET-INTEREST BEARING DEBT, MEUR LEVERAGE RATIO 3.1 2.5 2.1 1.8 1.8 1.7
Slide 27: Financial Ratios
Financial update FINANCIAL RATIOS Incl. IFRS 16 effect LEVERAGE RATIO, NIBD 1/ ADJUSTED EBITDA, LTM ROCE 2, %, LTM 5.8 3.3 3.1 1.7 2.5 -0.8 2.1 1.8 1.7 -3.9 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 EQUITY RATIO, % CAPITAL EMPLOYED 3 , MEUR 34.3 34.6 33.7 32.5 3
Slide 28: Summary & Outlook
SUMMARY & OUTLOOK 28
Slide 29: Summary
Summary & Outlook SUMMARY > Lower demand drives year on year revenues and EBIT in the quarter > High focus on tariff mitigation > Increasingly uncertain market > KA remains focused on cost reductions, operational efficiency, increasing product portfolio profitability, preserving cash while winning b
Slide 30: Guidance 2025
Summary & Outlook GUIDANCE 2025 GUIDANCE FROM FEBRUARY 25TH MAINTAINED > For 2025, we expect revenues to be relatively unchanged in first half year versus second half of 2024 with a potential upside in the second half. The visibility for the second half of the year is however currently limited and i
Slide 31: On the Agenda for 2025: Q&A
ON THE AGENDA FOR 2025: > Annual General Meeting, May 23 Q&A > Q2 report 2025, August 12 > Q3 report 2025, November 5 31
Slide 32: kongsbergautomotive.com
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