Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Kongsberg Automotive New — Q3 2021 Earnings Presentation
32 slides from Kongsberg Automotive Asa's earnings presentation, Oct 29, 2021
Slide 1: Kongsberg Automotive Q3 2021 Earnings Call
KONGSBERG AUTOMOTIVE Q3 2021 EARNINGS CALL OCTOBER 29, 2021
Slide 2: Agenda and Today's Presenters
Kongsberg Automotive Q3 2021 Earnings call AGENDA TODAY’S PRESENTERS SUMMARY AND HIGHLIGHTS PRESIDENT & CEO JOERG BUCHHEIM FINANCIAL UPDATE CFO FRANK HEFFTER OUTLOOK PRESIDENT & CEO JOERG BUCHHEIM JOERG BUCHHEIM FRANK HEFFTER CEO // Zurich (Switzerland) CFO // Zurich (Switzerland) Q&A KONGSBERG AUTO
Slide 3: Forward-Looking Statements and Non-IFRS Measures
Kongsberg Automotive Q3 2021 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 4: Summary & Highlights
SUMMARY & HIGHLIGHTS PRESIDENT & CEO JOERG BUCHHEIM
Slide 5: Executive Summary Q3 2021
Summary & highlights EXECUTIVE SUMMARY Q3 2021 €267.4M €5.7M REVENUES ADJ. EBIT Impacted by supply Growth of 4.8% vs. Q3 2020 chain situation 1.5 €7.6M BOOK-TO-BILL POSITIVE RATIO FREE CASH FLOW Liquidity reserve further increased due to positive Compared to 1.3 in Q2 2021 cash flows
Slide 6: At a Glance: Business Update
Summary & highlights AT A GLANCE BUSINESS UPDATE SHIFT GEAR RAW MATERIALS SHORTAGE PORTFOLIO TRANSFORMATION > Company-wide transformation program > Shift Gear has offset part of the supply > Shift Gear portfolio transformation aims to > First gear focused on performance chain situation impacts ensur
Slide 7: At a Glance: Business Segments Update
Summary & highlights AT A GLANCE BUSINESS SEGMENTS UPDATE POWERTRAIN & CHASSIS INTERIOR SPECIALTY PRODUCTS > Solid performance despite the impacts > Q3 2021 Revenues and Earnings still > Strong growth, profitability impacted of supply chain situation negatively impacted by semiconductor by supply ch
Slide 8: New Business Wins Highlights
Summary & highlights NEW BUSINESS WINS HIGHLIGHTS POWERTRAIN & CHASSIS INTERIOR SPECIALTY PRODUCTS €29.3M €9.8M €132.7M €22M €15M €5.0M EXPECTED EXPECTED EXPECTED EXPECTED EXPECTED EXPECTED LIFETIME ANNUALIZED LIFETIME ANNUALIZED LIFETIME ANNUALIZED REVENUES REVENUES REVENUES REVENUES REVENUES REVEN
Slide 9: Financial Update
FINANCIAL UPDATE CFO FRANK HEFFTER
Slide 10: Revenues & Adjusted EBIT
Financial update REVENUES & ADJUSTED EBIT SEMICONDUCTOR AND RAW MATERIAL SITUATION IMPACTING BOTH QUARTERLY REVENUES AND EARNINGS REVENUES , MEUR ADJ. EBIT, MEUR P&C INT SPP 22.5 20.0 299 303 296 267 255 117 110 110 13.9 102 103 82 77 87 72 74 5.2 5.7 94 111 109 93 78 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Slide 11: Segment Financials
Financial update SEGMENT FINANCIALS SEGMENTS DIFFERENTLY IMPACTED BY SEMICONDUCTOR AND RAW MATERIAL SITUATION POWERTRAIN & CHASSIS INTERIOR SPECIALTY PRODUCTS 117 87 111 109 110 110 82 103 102 74 77 94 93 72 REVENUES, MEUR 78 6.9% 3.6% 18.1% 17.4% ADJUSTED EBIT MARGIN, % 5.9% 1.4% 18.3% ADJUSTED EBI
Slide 12: Free Cash Flow
Financial update FREE CASH FLOW POSITIVE CHANGE IN NET WORKING CAPITAL AND STRICT CONTROL OVER CAPEX CONTRIBUTED TO A POSITIVE CASH FLOW FREE CASH FLOW1, MEUR Q3 2021 FCF DETAILS Operating activities +23 Therein: Overall NWC decrease +4 8 Investing activities -8 5 4 Financing activities -12 Therein:
Slide 13: Liquidity Development
Financial update LIQUIDITY DEVELOPMENT FURTHER INCREASE OF THE LIQUIDITY RESERVE IN Q3 2021 LIQUIDITY DEVELOPMENT, MEUR +0.3 Cash Unutilized Securitization facility Undrawn RCF +0.6 +3.7 -7.8 -4.5 +18.8 -7.9 -1.4 211.3 +4.4 205.2 81.3 75.2 60.0 60.0 70.0 70.0 Q2 2021 Adjusted EBITDA Other receivable
Slide 14: Outlook
OUTLOOK PRESIDENT & CEO JOERG BUCHHEIM
Slide 15: Shift Gear Program: Portfolio Transformation Is Underway
Outlook SHIFT GEAR PROGRAM PORTFOLIO TRANSFORMATION IS UNDERWAY SHIFT GEAR INTERIOR COMFORT SYSTEMS LIGHT-DUTY CABLES > Transactions after the balance sheet > Sale agreed of Interior Comfort > Sale agreed of Light Duty Cable (LDC) date are a key part of the second gear, Systems (ICS) business unit t
Slide 16: Key Figures of Businesses to Be Divested
Outlook KEY FIGURES OF BUSINESSES TO BE DIVESTED ENHANCED FOCUS IMPROVES FUTURE PROFITABILITY RATIONALE ICS DIVESTMENT LDC DIVESTMENT > We are evaluating and developing our technology-driven business towards e-mobility in order to position the €~240M* €~80M* company effectively and sustainably UNIT
Slide 17: Outlook Q3–Q4 2021: Updating Guidance
Outlook OUTLOOK Q3 – Q4 2021 UPDATING GUIDANCE FOLLOWING THE TRANSACTIONS RAW MATERIAL SUPPLY SITUATION GUIDANCE UPDATED PORTFOLIO TRANSFORMATION > The lack of sufficient global > As a result of the transactions, we > The second gear in the Shift Gear semiconductor industry capacity is expect FY 202
Slide 18: Q&A
Q&A
Slide 19: Appendix
APPENDIX
Slide 20: Balance Sheet & Income Statement
Appendix BALANCE SHEET & INCOME STATEMENT (MEUR) 30.09.21 30.09.20 31.12.20 (MEUR) Q3 2021 Q3 2020 YTD 2021 YTD 2020 FY 2020 Intangible assets 95.3 94.9 93.2 Revenues 267.4 255.2 866.1 670.8 969.3 Property, plant and equipment 232.0 208.7 228.8 Right-of-use assets 87.4 87.8 94.3 OPEX (250.7) (232.9)
Slide 21: Changes in Equity & Cash Flow Statement
Appendix (MEUR) Q3 2021 Q3 2020 YTD 2021 YTD 2020 FY 2020 Operating activities CHANGES IN EQUITY Profit / (loss) before taxes (1.5) 0.6 18.8 (132.6) (123.2) & CASH FLOW STATEMENT Depreciation & Write-off of tangible assets Amortization & Write-off of intangible assets 12.1 1.0 10.1 3.4 34.7 2.2 32.1
Slide 22: Powertrain & Chassis (P&C) Segment
Appendix POWERTRAIN & CHASSIS (P&C) SEGMENT STABLE REVENUES AND ADJ. EBIT IMPACTED BY SEMICONDUCTOR SITUATION REVENUES, MEUR ADJ. EBIT, MEUR Adj. EBIT margin (%) -1% 6.5 4.9 103 102 Despite revenues being constant, the adj. EBIT declined 6.6 -1.6 The Powertrain and Chassis segment consists of two du
Slide 23: Interior (INT) Segment
Appendix INTERIOR (INT) SEGMENT REVENUES AND EARNINGS IN Q3 2021 STILL NEGATIVELY IMPACTED BY SEMICONDUCTOR SITUATION REVENUES, MEUR ADJ. EBIT, MEUR Adj. EBIT margin (%) -3% The Interior segment consists of two business units: 1.4 -4.1 74 Interior Comfort Systems (ICS) and Light Duty Cables (LDC). 1
Slide 24: Specialty Products (SPP) Segment
Appendix SPECIALTY PRODUCTS (SPP) SEGMENT CRISIS-RESISTANT SEGMENT WITH STRONG REVENUES AND MARGINS REVENUES, MEUR ADJ. EBIT, MEUR Adj. EBIT margin (%) +19% The Specialty Products segment consists of three 18.3 12.9 Adjusted EBIT was MEUR 12.0 in the third quarter of 2021, 93 business units: Couplin
Slide 25: Quarterly Revenues & Adjusted EBIT
Appendix QUARTERLY REVENUES & ADJUSTED EBIT QUARTERLY REVENUES, MEUR QUARTERLY ADJ. EBIT, MEUR 2018 2019 2020 2021 Impact of global supply chain situation 2018 2019 2020 2021 Impact of global supply chain situation 307 305 305 27.6 +2 294 299 288 288 +9 288 25.8 279 281 +7.6 22.0 22.5 279 21.5 20.1
Slide 26: Q3 2021 Revenues and Adj. EBIT
Appendix Q3 2021 REVENUES AND ADJ. EBIT REVENUES, MEUR ADJ. EBIT, MEUR Impact of global supply chain situation Impact of global supply chain situation 278.6 22.0 +3.5 +11.2 +2.4 +3.1 +4.3 +7.4 +6.5 13.9 +2.3 +16.3 +8.6 -1.9 255.2 +0.5 +13.2 +2.6 -3.9 +4.6 -2.1 -2.1 267.4 -2.3 -0.1 5.7 Q3 2020 P&C1 I
Slide 27: Net Financial Items
Appendix NET FINANCIAL ITEMS Other financial items Currency effects Net interest Account receivables securitization - Expenses FOREX GAINS/LOSSES NET FINANCIAL ITEMS, MEUR The foreign exchange effects in Q3 1.9 2021 are made up of: > realized foreign exchange losses of MEUR 0.7 7.7 > unrealized fore
Slide 28: Q3 2020 vs Q3 2021 Net Income Development
Appendix Q3 2020 VS Q3 2021 NET INCOME DEVELOPMENT NET INCOME DEVELOPMENT, MEUR ADJUSTED EBIT 1.7 > Adj. EBIT lower by MEUR 8.2 compared to Q3 2020 due to the extremely negative impact of the global supply chain situation INTEREST > The interest expenses in Q3 2021 remained at the comparable level a
Slide 29: Financial Ratios Recovered from COVID-19
Appendix FINANCIAL RATIOS RECOVERED FROM COVID-19 Excluding IFRS16 Incl. IFRS 16 effect ADJUSTED GEARING RATIO1, NIBD2/EBITDA, LTM ADJUSTED ROCE1, %, LTM 6.2 5.8 10.2 9.7 5.1 5.4 8.5 8.3 3.7 4.2 2.7 2.8 1.2 1.7 2.2 2.2 3.4 3.7 0.5 0.0 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2020 Q4 2020 Q1 2021 Q
Slide 30: New Business Wins
Appendix NEW BUSINESS WINS NEW BUSINESS WINS PER QUARTER, PER ANNUM SALES, MEUR NEW BUSINESS WINS PER QUARTER, LIFETIME SALES1, MEUR Ø 82 Ø 372 110 102 109 463 491 471 455 89 87 92 86 427 422 339 347 65 65 299 43 50 224 160 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q1-19 Q2-1
Slide 31: Market Forecasts
Appendix MARKET FORECASTS GLOBAL PASSENGER CAR PRODUCTION, SALES IN MILLION UNITS, INCLUDING CHINA GLOBAL PASSENGER CAR PRODUCTION, SALES IN MILLION UNITS, EXCLUDING CHINA +33% +33% 92 98 100 64 68 69 83 58 75 75 51 52 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 GLOBAL TRUCK PRODUCTI
Slide 32: Kongsberg Automotive
KONGSBE AUTOMOTI
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