Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Kongsberg Automotive New — Q2 2024 Earnings Presentation
30 slides from Kongsberg Automotive Asa's earnings presentation, Aug 8, 2024
Slide 1: Kongsberg Automotive Q2 2024
KONGSBERG AUTOMOTIVE Q2 2024 AUGUST 08, 2024
Slide 2: Forward-Looking Statements and Non-IFRS Measures
Kongsberg Automotive Q2 2024 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 Q2 2024 Earnings Call TODAY’S PRESENTERS AGENDA EXECUTIVE SUMMARY MARKET UPDATE FINANCIAL UPDATE GUIDANCE & GROUP NEWS Q&A LINDA NYQUIST-EVENRUD CHRISTIAN JOHANSSON CEO & PRESIDENT CFO KONGSBERG AUTOMOTIVE KONGSBERG AUTOMOTIVE // // 33
Slide 4: Executive Summary
EXECUTIVE SUMMARY KONGSBERG AUTOMOTIVE // 4
Slide 5: Executive Summary – Q2 2024
Executive summary EXECUTIVE SUMMARY – Q2 2024 IMPROVED PROFITS WITH ALL-TIME HIGH NEW BUSINESS WINS CORE BUSINESS5 €6.4M €694.8M €5.5M €175.3M EBIT NEW BUSINESS3 EBIT REVENUES Increased by MEUR 18.9 vs. Q2 2023 Increase from MEUR 171.5 in Q2 2023 Increase by MEUR 5.3 vs. Q2 2023 Decrease of 4.9% vs.
Slide 6: Core Business vs. Non-Core Business
Executive summary CORE BUSINESS VS. NON-CORE BUSINESS CORE NON-CORE 8.8% 13.6% 2.6% 3.3% 3.1% 5.0 3.3% 2.9% 3.9 0.9 5.8 5.7 5.5 -31.6% EBIT 5.1 -12.7 -26.2 0.2 0.1% -75.4% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 REVENUES 184.4 44.7 175.8 176.2 175.3 40.1 34.8
Slide 7: Drive Control Systems Business Area Update
Executive summary DRIVE CONTROL SYSTEMS BUSINESS AREA UPDATE REVENUES, MEUR Q2 2024 105.3 101.3 101.0 > Revenues decreased by MEUR 10.3 (at constant 95.6 currencies) compared to Q2 2023, which was 92.5 mainly driven by the decline of the European commercial vehicle market, partially offset by increa
Slide 8: Flow Control Systems Business Area Update
Executive summary FLOW CONTROL SYSTEMS BUSINESS AREA UPDATE REVENUES, MEUR 82.7 79.1 79.7 75.2 74.5 Q2 2024 > Increase in revenues of Fluid Transfer Systems (FTS) at MEUR 1.9 at constant currencies was offset by the decline of the Couplings’ revenues Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 at MEUR 2
Slide 9: Book-to-Bill Ratio at Record 2.1
Executive summary BOOK-TO-BILL BOOK-TO-BILL RATIO AT RECORD 2.1 – SEVERAL SUCCESSFUL PROGRAM AWARDS IN Q2 BOOK-TO-BILL PERFORMANCE, MEUR NBW (lifetime sales LTM) Revenues (LTM) Book-to-bill ratio 1,765 2.1 1.4 1.1 0.8 0.8 0.8 0.8 0.9 0.7 1,241 989 894 906 918 915 889 885 839 868 853 801 760 723 719
Slide 10: New Business Wins Q2 2024
Executive summary NEW BUSINESS WINS Q2 2024 LIFETIME REVENUES, MEUR PER BUSINESS SEGMENT PER AREA 70.3 635.7 694.8 694.8 8.7 MEUR MEUR 19.4 21.7 624.5 9.3 DRIVE CONTROL SYSTEMS TRUCK, TRAILER, BUS & COACHES AFTERMARKET FLOW CONTROL SYSTEMS PASSENGER CARS AGRICULTURE & CONSTRUCTION INDUSTRIAL KONGSBE
Slide 11: New Business Win on Gear Control Unit (GCU)
Executive summary Q2 NEW BUSINESS WIN ON GEAR CONTROL UNIT (GCU) OVER MEUR 523 IN ESTIMATED LIFETIME REVENUE ANNOUNCED ON APRIL 26, 2024 > ROBUST AND DURABLE DESIGN > MAXIMUM COMFORT AND PERFORMANCE FOR THE DRIVER > HIGH PERFORMANCE > LOW TOTAL COST OF OWNERSHIP > ONLY GCU IN THE MARKET WITH SELF-AD
Slide 12: New Business Win on Dog Clutch Actuator (DCA)
Executive summary Q2 NEW BUSINESS WIN ON DOG CLUTCH ACTUATOR (DCA) OVER MEUR 55 IN ESTIMATED LIFETIME REVENUE ANNOUNCED ON JUNE 10, 2024 > ROBUST AND DURABLE DESIGN > MAXIMUM COMFORT AND PERFORMANCE FOR THE DRIVER > BOTH SHIFTING AND DE-COUPLING > SPACE EFFICIENT > OUTSTANDING SERVICEABILITY > USE O
Slide 13: Market Update
MARKET UPDATE KONGSBERG AUTOMOTIVE // 13
Slide 14: Market Trends: Softening in Most Regions Outside China
Market update MARKET TRENDS COMMERCIAL AND PASSENGER CAR MARKET SOFTENING IN MOST REGIONS OUTSIDE CHINA MARKET DEVELOPMENT REGION ∆ Q2-24 vs. Q2-23 ∆ 2024 vs. 2023 GLOBAL COMMERCIAL VEHICLES PRODUCTION, thousand units China +12.1% +6.4% China +2.4% Global excl China APAC w/o China -1.3% -5.3% 873 85
Slide 15: Market Forecasts
Market update MARKET FORECASTS NEGATIVE DEVELOPMENT IN 2024 WHILE 2025 LOOKS MORE PROMISING GLOBAL COMMERCIAL VEHICLES PRODUCTION, thousand units INCLUDING CHINA EXCLUDING CHINA +6% +19% -5% +4% +15% -1% 3,773 3,711 3,971 2,410 2,494 3,401 3,351 3,536 2,285 2,164 2,258 2,287 2023 2024 2025 2026 2027
Slide 16: Kongsberg Versus Market
Market update KONGSBERG VERSUS MARKET HEADWIND FROM A MORE CAUTIOUS EUROPEAN MARKET IMPACTED KA’S REVENUES REVENUE GROWTH VS MARKET GROWTH IN Q2 24 vs. Q2 23 1 PERFORMANCE IN KEY MARKETS > COMMERCIAL VEHICLES GLOBAL AMERIC AS » KA’s sales in Q2 2023 were exceptionally high, especially in relation KA
Slide 17: Development of the Global Market Situation
Market update DEVELOPMENT OF THE GLOBAL MARKET SITUATION SUPPLY MARKETS HAVE FURTHER IMPROVED CURRENT TRIGGERS MACROECONOMIC FACTORS AFFECTING FOR DISRUPTION GLOBAL MARKET ENVIRONMENT Q3 and Q4 demand in NA reducing versus 1st half 2024, Election uncertainty dampening demand. CUSTOMER DEMAND KA,s ma
Slide 18: Financial Update
FINANCIAL UPDATE KONGSBERG AUTOMOTIVE // 18
Slide 19: Revenues
Financial update REVENUES Q2 2024 DECLINE COMPARED TO EXCEPTIONALLY HIGH SALES IN Q2 2023 REVENUES 1 , MEUR 246 906 885 2021 229 226 225 831 88 218 219 215 40 221 215 2022 excl. BRP 212 209 211 20 25 206 3 2022 BRP 193 2023 2024 212 818 199 201 206 Q1 Q2 Q3 Q4 Full Year 2021 2022 2023 2024 2021 2022
Slide 20: EBIT
Financial update EBIT IMPROVED EARNINGS DESPITE LOWER REVENUES - COST OPTIMIZATIONS MATERIALIZING EBIT 1 , MEUR and % of revenues 43.9 63.1 21.3 7.0% 2021 9.8% 20.4% 2022 excl. BRP 47.4 2022 BRP 2.6% 2023 13.0 2024 10.1 6.0% 9.7 9.2 8.0 4.8% 6.4 6.3 3.7% 4.4% 6.8 48.6 3.7% 3.6 3.1% 3.3% 3.3% 5.9% 2.
Slide 21: Revenues & EBIT Bridges
Financial update REVENUES & EBIT BRIDGES IMPROVED PROFITABILITY DESPITE LOWER VOLUME REVENUES, MEUR DCS 224.5 The impact of declining volumes on Q2 2024 EBIT was mitigated by favorable product mix and lower warranty -10.3 expenses than in Q2 2023, but more than offset by benefits -0.1 from operation
Slide 22: Net Income Bridge
Financial update NET INCOME BRIDGE IMPROVED OPERATIONAL AND FINANCIAL RESULT EBIT Despite decline in revenues by MEUR 16.7, KA’s profitability improved by MEUR 18.9. For more NET INCOME, MEUR information, please refer to slide 20. 3.7 +0.7 CURRENCY GAINS/LOSSES With no realized foreign exchange loss
Slide 23: Free Cash Flow
Financial update FREE CASH FLOW FREE CASH FLOW POSITIVE CONSIDERING IMPACT OF INTEREST PAYMENT ON OLD BOND NOTES Q2 2024 FCF DETAILS FREE CASH FLOW 1 , MEUR Operating activities +8.7 Investing activities -4.1 Financing activities -65.3 Therein: +84.5 Payment for advanced interests -4.5 +76.5 on old
Slide 24: Q2 2024 Liquidity Development
Financial update Q2 2024 LIQUIDITY DEVELOPMENT LIQUIDITY DEVELOPMENT 1 , MEUR CASH UNUTILIZED SECURITIZATION FACILITY +108.0 UNDRAWN RCF -190.2 202.7 +25.0 +13.5 -7.2 -4.4 +6.8 -4.1 -0.3 -4.5 140.8 -3.0 -0.3 -1.2 147.7 100.8 85.8 85.8 25.0 25.0 -25.0 -15.0 30.0 30.0 15.0 Q1 2024 EBITDA Change in Tax
Slide 25: Financial Ratios
Financial update FINANCIAL RATIOS Incl. IFRS 16 effect LEVERAGE RATIO, NIBD 1/ ADJUSTED EBITDA, LTM ROCE 2, %, LTM 11.6 11.2 1.8 1.8 1.7 1.5 1.7 1.2 -3.9 -5.9 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 EQUITY RATIO, % CAPITAL EMPLOYED 3 , MEUR 31.7 33.4 34.3 342
Slide 26: Guidance & Group News
GUIDANCE & GROUP NEWS KONGSBERG AUTOMOTIVE // 26
Slide 27: Group News
Guidance & Group news GROUP NEWS SUCCESSFULLY COMPLETED CONDUCTED THE CAPITAL RELEASED SUSTAINABILITY ON THE AGENDA FOR ISSUANCE OF NEW NORDIC MARKETS DAY REPORT 2023 SECOND HALF OF 2024 BOND > BREAKFAST MEETING Q4 –TO BE ANNOUNCED > POLICY DEPLOYMENT > CONTINUATION OF COST OPTIMIZATION > ASSESSING
Slide 28: Revenues and EBIT Guidance for 2024 Revised
Guidance & Group News REVENUES AND EBIT GUIDANCE FOR 2024 REVISED, NEW BUSINESS WINS GUIDANCE INCREASED REVENUES, MEUR EBIT, MEUR NBW, MEUR BOOK-TO-BILL 44 885 880 34 830 830 35 140 790 28 5 161 120 130 120 3 39 44 25 30 17 >1,200 >1,500 >1.2 >1.5 -5 0 >1.2 724 710 740 700 >1.5 670 1.1 989 -37 2023
Slide 29: Q&A
Q&A KONGSBERG AUTOMOTIVE // 29
Slide 30: Mobility Solutions for the Future
MOBILITY SOLUTIONS FOR THE FUTURE
Kongsberg Automotive New — Q2 2024 Earnings Presentation on 6ix