Kongsberg Automotive ASA · OSL:KOA
Kongsberg Automotive ASA — Q3 2015 Earnings Presentation
32 slides from Kongsberg Automotive ASA's earnings presentation, Oct 15, 2015
Slide 1: Kongsberg Automotive ASA Third quarter 2015
Kongsberg Automotive ASA Third quarter 2015 | October 15, 2015 1
Slide 2: Group highlights Q3
Group highlights Q3 ► Q3 2015 revenues of EUR 234.5 million REVENUES ► Q3 revenues were EUR 5.9 (2.6%) million above Q3 2014, including favorable currency effects of EUR 12.2 mill. ► EBIT was EUR 11.5 million in Q3 2015, EUR 1.8 million below Q3 2014 ‒ Impacted by lower sales volumes, increased R&D
Slide 3: New business wins (LTM)
New business wins (LTM) ▸ EUR 68 million p.a. of new business wins booked in Q3 2015, confirms good order intake New business wins (LTM per annum value) EUR Million 350 321 300 68 250 200 318 150 293 282 253 100 205 50 0 3Q14 4Q14 1Q15 2Q15 3Q15 3
Slide 4: Operational Review
Hans Peter Havdal, CEO OPERATIONAL REVIEW 4
Slide 5: Q3 2015: Business areas overview
Q3 2015: Business areas overview Interior Driveline Driver Control Fluid Transfer 33 % of revenues 24 % of revenues 22 % of revenues 21 % of revenues MARKET MARKET MARKET MARKET Safety & comfort related Gear shift systems for light Driver control systems, cabin Fluid handling systems products for ve
Slide 6: Operational update: Commercial vehicles
COMMERICAL VEHICLES Operational update – Overall project activity is high with increased R&D spend as stated – Higher R&D spend mainly for development of an Automated Manual Transmission (AMT) system to be launched in 2017 – New program launch for Driver Control with increased market share in China
Slide 7: Operational update: Passenger cars
PASSENGER CARS Operational update – Good momentum in Seat comfort, with increasing demand for features in premium segment – Seat massage program launch for Volvo Cars for their SPA platform, from Pruszkow (Poland) plant; Estimated annual volume of 45 000 – Continuing focus on improving margins in Dr
Slide 8: Key global Seat Comfort wins
Key global Seat Comfort wins ▸ Four contracts in Q3 – Combined lifetime value ca. EUR122 M ▸ Seat comfort solutions – Seat heat – Massage – Ventilation – Cushion length adjustment – Lumbar support ▸ Leading & premium customers – European & North American OEMs – Sedans to luxury SUVs ▸ Utilizing glob
Slide 9: Automotive development trends at IAA
Automotive development trends at IAA - Confirms Kongsberg Automotive’s focus areas IAA trends Premium segment & Push for EV’s & Connectivity & User IAA trends SUVs Hybrids experience • Bentley Bentayga • BMW & Mercedes • Intelligent safety & comfort • Jaguar F-Pace range of PHVs technologies Key lau
Slide 10: Financial Update
Trond Stabekk, CFO FINANCIAL UPDATE 10
Slide 11: Revenue and EBIT
Revenue and EBIT Revenues EBIT and EBIT margin EUR million EUR million and percent 5.8% 6.2% 270 266 4.9% 2.4% 240 235 229 -1.8% 16.7 13.2 11.5 5.7 -4.8 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 * Adjusted results 11
Slide 12: Revenues EUR 5.9 million (2.6%) above Q3 14
Revenues EUR 5.9 million (2.6%) above Q3 14 Revenues EUR million 260 250 240 12.2 0.1 230 -6.6 1.1 -1.3 0.3 220 210 234.5 228.6 200 190 180 Q3 Interior* Driveline* Fluids* DCS* Others FX Q3 2014 2015 * Variances excluding FX effects 12
Slide 13: EBIT still influenced by R&D and operational issues
EBIT still influenced by R&D and operational issues EBIT EUR million 18 1.2 -2.1 15 1.0 -1.4 -0.8 0.5 12 9 6 13.2 11.5 3 0 Q3 Interior* Driveline* Fluids* DCS* Others Net FX Q3 2014 2015 * Variances excluding FX effects 13
Slide 14: Net Profit development
Net Profit development Net Profit EUR million 15 10 -1.8 1.1 -15.7 5 7.1 0 5.4 -3.8 -5 0.0 -10 -15 Q3 EBIT Interest FX Effects Others Tax Q3 2014 2015 14
Slide 15: Free Cash Flow (LTM)
Free Cash Flow (LTM) Free Cash Flow (LTM) EUR million 45 37 ► Free Cash Flow trend impacted by 30 increased net working capital, investments and purchase of treasury shares as apposed to sale of treasury 17 16 shares last year Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 15
Slide 16: Financial ratios
Financial ratios NIBD Equity EUR million EUR million 232.6 236 228 228 225 218 222.5 213.4 210.9 210.3 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 NIBD/EBITDA Equity ratio Times Percent 31.2% 30.5% 30.7% 29.6% 30.0% 2.4 2.4 2.4 2.3 2.2 Q3 2014 Q4 2014 Q1 2015 Q2 2
Slide 17: Financial KPIs
Financial KPIs Revenues (Ltm) ROCE (Ltm) EUR million Percent 1005 1011 993 12.0% 11.8% 981 11.1% 10.4%* 979 9.9%* 6.7% 6.2% Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 EBIT and EBIT margin (Ltm) Avg. Capital Employed and turnover (Ltm) EUR million and percent EUR
Slide 18: Market Update
Philippe Toth, SVP Business Development & IR MARKET UPDATE 18
Slide 19: Light vehicle production – LMC Automotive Q3 2015
Light vehicle production – LMC Automotive Q3 2015 4.8% Europe: Western European market is growing well. YTD selling rate now at 8% above 2014 YTD for Western Europe. Russia still continues downwards. 6.8% North America: Continues strong growth, will probably reach 17.5 Mill units in 2015 -1.6% China
Slide 20: Commercial vehicle production – LMC Automotive Q3-15
Commercial vehicle production – LMC Automotive Q3-15 6.7% Europe: Strong growth in EU production for both internal sales and export drives total upwards -0.8% North America: North America stagnated in Q3. Heavy Duty (Class8) segment is still growing. However, decline in the Medium Duty segment cause
Slide 21: Market summary and outlook
Market summary and outlook Global industry growth Country/region 2015 Outlook • Good growth in Western Europe. Russia pulls down. • Western Europe YTD selling rate is +8% • Strong growth in EU production for both internal sales and export, +12% for W. Europe in Q3 • Stable growth of around 3% for 20
Slide 22: Limited exposure to VW emission issue
Limited exposure to VW emission issue ▸ Existing and upcoming VW business: – Approx. 3% of KA’s sales are represented by VW Group – Most of this business is related to our seat comfort business for the premium segment of VW in Europe • Could see lower revenue due to drop Affected VW brands in volume
Slide 23: Summary & Outlook
Hans Peter Havdal SUMMARY & OUTLOOK 23
Slide 24: Summary and outlook
Summary and outlook Company outlook for Q4 2015 EUR Million 300 ▸ KA expects Q4 2015 revenues of approx. EUR 250 240 million 200 ▸ For the full year 2015, KA expects revenues in 150 line with 2014 revenues, based on the current 100 240 240 market assumptions 50 ▸ KA in a transition phase with declin
Slide 25: Save the date: Capital Markets Day on Dec. 2, 2015
Save the date: CAPITAL MARKETS DAY ON DEC. 2, 2015 PLACE: LYSAKER TORG 35 09:00 – 12:00 25
Slide 26: Questions & Answers
Thank you for your attention! QUESTIONS & ANSWERS 26
Slide 27: Enhancing the driving experience
“Enhancing the driving experience” Passionate Accountable Prepared 27
Slide 28: Appendix
AX IKKONGSBERG
Slide 29: Share price and shareholders
Share price and shareholders Data: 30.09.2015 Current Position % Share Outstanding Investor Name Nationality 22.176.116 5,45 CREDIT SUISSE SECURI (EUROPE) PRIME BROKE GBR 660 6,0 17.246.095 4,24 J.P. Morgan Chase Ba NORDEA RE:NON-TREATY GBR 16.423.552 4,04 THE NORTHERN TRUST C NON-TREATY ACCOUNT GBR
Slide 30: Financial calendar and Investor Relations contacts
Financial calendar and Investor Relations contacts Financial calendar 2015 IR contacts Interim Reports Presentation Hans Peter Havdal President & CEO Telephone: +47 92 06 56 90 Q3 14th of October 15th of October E- mail: Hans.Havdal@ka-group.com 2015 Trond Stabekk Q4 13th of February 14th of Februar
Slide 31: Disclaimer
Disclaimer This presentation contains certain forward-looking information and statements. Such forward-looking information and statements are based on the current, estimates and projections of the Company or assumptions based on information currently available to the Company. Such forward-looking in
Slide 32: Kongsberg Automotive
KONGSBERG AUTOMOTIVE