Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Investor Day (May 2024)
86 slides from Kongsberg Automotive Asa's investor day presentation, May 13, 2024
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY MAY 13, 2024
Slide 2: Forward-Looking Statements and Non-IFRS Measures
Kongsberg Automotive Capital Markets Day May 13, 2024 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
Slide 3: Today's Presenters
TODAY’S PRESENTERS LINDA NYQUIST-EVENRUD FRANK HEFFTER CHRISTIAN AMSEL DAVID REDFEARN DIRK ECKERT PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHIEF TECHNOLOGY OFFICER CHIEF SALES OFFICER CORPORATE SUSTAINABILITY MANAGER
Slide 4: Agenda
AGENDA PART 1 PART 2 EXECUTIVE SUMMARY MARKET UPDATE BUSINESS STRATEGY GROWTH STRATEGY SUSTAINABILITY PRODUCT PORTFOLIO FINANCIAL UPDATE KEY TAKEAWAYS BREAK Q&A
Slide 5: Executive Summary
EXECUTIVE SUMMARY (
Slide 6: Who We Are
Executive summary WHO WE ARE HEADQUARTERS: KONGSBERG, NORWAY GLOBAL AUTOMOTIVE AND AMERICAS: ASIA: INDUSTRIAL APPLICATIONS CANADA USA CHINA INDIA PROVIDER WITH OVER 65 YEARS MEXICO BRAZIL SOUTH KOREA OF ENGINEERING EXCELLENCE EUROPE: NORWAY SWITZERLAND SWEDEN UK GERMANY HEADQUARTERED POLAND SLOVAKIA
Slide 7: Kongsberg Reestablished as the Headquarters
Executive summary KONGSBERG REESTABLISHED AS THE HEADQUARTERS KONGSBERG AUTOMOTIVE’S (KA) BOARD OF DIRECTORS, ALONG WITH THE CEO AND EXECUTIVE MANAGEMENT, HAS DECIDED TO OPERATE THE COMPANY OUT OF KONGSBERG, NORWAY. Going forward, Kongsberg will be the headquarters for KA, with Zurich, Switzerland,
Slide 8: What We Do
6 Executive summary WHAT WE DO TECH CENTERS IN SCANDINAVIA, NORTH AMERICA AND CHINA 343 HIGHLY SKILLED ENGINEERS GLOBALLY EXPERTISE IN ELECTRONICS AND MECHATRONICS POWERTRAIN SOLUTIONS FLUID AND THERMAL MANAGEMENT WE INNOVATE AND ELECTRIC ACTUATORS PEDALS AND HAND CONTROLS DELIVER COST-EFFECTIVE VEH
Slide 9: How We Do It
10 Executive summary HOW WE DO IT LANDFILL-FREE MANUFACTURING LOCATIONS WE DESIGN EFFICIENT PRODUCTS THAT ARE SAFER AND MINIMIZE 21% ENVIRONMENTAL IMPACT. REDUCTION IN SCOPE 1 AND 2 CO2e EMISSIONS CARBON NEUTRAL 100%RENEWABLE 45% RENEWABLE ENERGY USED ACROSS KA’S PRODUCTS ENERGY BY YEAR BY YEAR 2039
Slide 10: With Whom
Executive summary WITH WHOM gm STELUANTIS 6) = W TESLA eS ~ — C52) qa oie fame) TRATON SANA nrc = (ED SID Fo = max IVECO 4 c= laa ; ova @ ssuzu XY GROUP THN Jou DEERE pean GS @ © ® Grew @ CT ce wine’ equa @NIKOLA 9 @sany —§33 —@ cunnannauro $ suzuki ASHOK LEYLAND: GEELY Vamp « i @ [3 amc coopesendad
Slide 11: 2023 Highlights
Executive summary 2023 HIGHLIGHTS HGHEST 8.2% YEAR-END NBW VS 2022 EXCLUDING BRP SINCE 2018 885€M 989€M REVENUES BUSINESS WINS LIFETIME SALES REVENUE GROWTH IN THE COMMERCIAL VEHICLES MARKET WAS ABOVE MARKET FOR THE THIRD YEAR IN A ROW COMMERCIAL VEHICLES MARKET VS KONGSBERG AUTOMOTIVE REVENUE GROWT
Slide 12: Milestones Since 2021
Executive summary MILESTONES SINCE 2021 PRESIDENT & CEO DRIVE CONTROL SHIFT GEAR FLOW CONTROL APPOINTED SYSTEMS (DCS) PROGRAM INITIATED SYSTEMS (FCS) FORMED FORMED NEW BOARD NEW BUSINESS OF DIRECTORS STRATEGY APPOINTED LAUNCHED 2021 2022 2023 2024 KONGSBERG POWERSPORTS ROMOLINE RE-ESTABLISHED AS DIV
Slide 13: 2024 – A Turnaround Year
GUIDANCE FOR 2024 Executive summary 2024 – A TURNAROUND YEAR REVENUE SPLIT, MEUR NBW, MEUR 885 880 830 161 140 120 >1,200 724 710 740 989 IMPROVE EARNINGS AND CASHFLOW 2023 2024 2023 2024 LOWER RANGE HIGHER RANGE LIFETIME REVENUES COST OPTIMIZATION EBIT, MEUR BOOK-TO-BILL 44 34 -20 44 39 FOCUSED AND
Slide 14: Global Footprint Optimization
Executive summary GLOBAL FOOTPRINT OPTIMIZATION REDUCED HEADCOUNT IN ALL REGIONS NORWAY POLAND HEADQUARTERS BRZESC KUJAWSKI NEW PLANT OPENED REESTABLISHED AT 6100 M2 KONGSBERG OPERATIVE SINCE Q4 2022 FLOW CONTROL SYSTEMS GERMANY DORTMUND OFFICE CLOSED JAPAN SWITZERLAND TOKYO OFFICE CLOSED MEXICO ZUR
Slide 15: Long Term Ambitions - 2028
Executive summary LONG TERM AMBITIONS - 2028 REVENUES EBIT MARGIN ABOVE EUR 1.0 BN AT OR ABOVE 8,5% By organic growth, representing a double-digit % CAGR for the core Reach and maintain EBIT-margin, business, being higher than the aiming for sustainable expected industry growth profitability
Slide 16: Business Strategy
BUSINESS STRATEGY (
Slide 17: KA's Business Strategy: Strategic House
Business strategy KA’S BUSINESS STRATEGY STRATEGIC HOUSE OUR VISION OUR MISSION OUR GOALS OUR STRATEGIC PILLARS GROWTH RESILIENT AND PERFORMANCE SUSTAINABILITY FORWARD-LOOKING EXCELLENCE PORTFOLIO OUR FOUNDATION PEOPLE & CULTURE OUR VALUES OUR HERITAGE
Slide 18: KA's Business Strategy: Shift Gear Program
Business strategy KA’S BUSINESS STRATEGY SHIFT GEAR PROGRAM INTEGRATION OUR VISION GEAR I OUR MISSION 1 PERFORMANCE IMPROVEMENT PROGRAM 2 ORGANIZATION AND OPERATING MODEL OUR GOALS GEAR II OUR STRATEGIC PILLARS 3 SECURE & INNOVATE (P&C) 4 ACCELERATE & INNOVATE (SPP) GROWTH RESILIENT AND PERFORMANCE
Slide 19: Sustainability
SUSTAINABILITY (
Slide 20: Our Approach: Clear Targets and Transparency
Sustainability OUR APPROACH CLEAR TARGETS AND TRANSPARENCY TARGETS TRANSPARENCY LONG TERM TARGETS RATINGS 2030 2039 Forever B- Score 18.8 score / low risk 100% renewable Carbon neutral products Zero Accidents energy 53 Score ~B 85% score per plant MID TERM TARGETS 2025 10% energy use 10% landfill wa
Slide 21: Performance 2023
Sustainability PERFORMANCE 2023 CLIMATE WASTE ENVIRONMENT > 45% share of Renewable Electricity > Overall Waste amount remained stable > 6% Energy use reduction* > 8% Disposed waste increase* > 21% Scope 1+2 CO2e emissions reduction* > 10 plants landfill-free PEOPLE SAFETY > Launch of learning platfo
Slide 22: Highlights 2023
Sustainability HIGHLIGHTS 2023 ESG STRATEGY SCOPE 3 EMISSION RATINGS DATA B- 1. DOUBLE MATERIALITY SUSTAINABILITY PROJECT HAS BEEN KICKED OFF IN 2023. FIRST CALCULATION OF 2. SUSTAINABILITY First achieved Milestones: Double SCOPE 3 (UPSTREAM) FRAMEWORK Materiality Analysis according to the CO2E DATA
Slide 23: Product Portfolio Supports Transition to Sustainable Mobility
Sustainability OUR PRODUCT PORTFOLIO SUPPORTS THE TRANSITION TO SUSTAINABLE MOBILITY PERFORMANCE VIEW APPLICATION VIEW LESS FUEL CONSUMPTION AND REDUCTION OF CO2 EMISSIONS LOW OR ZERO-CO2 DRIVE SYSTEMS ICE HEV PHEV BEV / FCEV THERMAL MANAGEMENT GEARSHIFT SYSTEMS Products with improved performance, C
Slide 24: Outlook
Sustainability OUTLOOK KA COMMITS TO THE GOAL KA COMMITS TO THE GOAL KA DEFINED CLEAR OF 100% RENEWABLE OF CARBON NEUTRAL AMBITION LEVELS FOR ENERGY AT ALL PRODUCTION xxx PRODUCTS xxx xxx BY 2039 DIFFERENT ESG TOPICS PLANTS BY 2030 > Ongoing switch of electricity > Ongoing calculation of carbon > Cl
Slide 25: Financial Update
FINANCIAL UPDATE (
Slide 26: The CFO Agenda
Financial update THE CFO AGENDA IMPROVE PROFITABILITY AND CASH GENERATION PROVIDE FINANCIAL STABILITY AND FLEXIBILITY INCREASE RETURNS
Slide 27: Improve Profitability and Cash Generation: Program Contributions
Financial update IMPROVE PROFITABILITY AND CASH GENERATION PROGRAM CONTRIBUTIONS (IN MEUR) IMPROVEMENT PROGRAM CONTRIBUTIONS 68 61 51 PERFORMANCE EXCELLENCE 2021 2022 2023
Slide 28: What We Aim for in 2024
Financial update IMPROVE PROFITABILITY AND CASH GENERATION WHAT WE AIM FOR IN 2024 TARGETED 2024 IMPACTS IMPROVING THE BOTTOM-LINE Overhead Cost / Support Function Optimization Benchmark / Organizational Effectiveness / Right sizing > EUR 17m > Around 110 positions reduced, 40 replaced in best cost
Slide 29: Reallocation of Non-Core R&D Resources
Financial update IMPROVE PROFITABILITY AND CASH GENERATION REALLOCATION OF NON-CORE R&D RESOURCES TO BOOST INNOVATION IN THE CORE R&D IN % OF TOTAL EXTERNAL REVENUES 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2022 2023 2024e CORE NON-CORE
Slide 30: CAPEX Allocation Based on Profit Potential
Financial update IMPROVE PROFITABILITY AND CASH GENERATION MEASURES CAPEX ALLOCATION BASED ON PROFIT POTENTIAL Stringent Approval Process CAPEX / D&A > K-brief for Engg. > CER1 before quotation 1.40 1.20 > CER2 @ award > interim review @ SOP 1.00 > CERX when deviation 0.80 Tight management 0.60 > an
Slide 31: Reduce NWC from Elevated Levels
Financial update IMPROVE PROFITABILITY AND CASH GENERATION MEASURES REDUCE NWC FROM ELEVATED LEVELS INVENTORY NWC IN % OF TOTAL EXTERNAL REVENUES 20.0% > Consignment Stock 19.0% > Payment / Incoterms 18.0% > Near Shoring 17.0% 16.0% ACCOUNTS RECEIVABLES 15.0% > Payment / Incoterms 14.0% > Overdue co
Slide 32: Reduce CE to Increase ROCE
Financial update IMPROVE PROFITABILITY AND CASH GENERATION 2024 REDUCE CE TO INCREASE ROCE Impairments and write-offs CAPITAL EMPLOYED 1 , MEUR taken in Q2 and Q4 2023 are currently negatively impacting ROCE based on last twelve months EBIT. 357 342 361 331 320 Q1 2024 only is at 12.4%. Q1 2023 Q2 2
Slide 33: Secure Achievement of Mid-Term Ambitions 2024-2028
Financial update SECURE ACHIEVEMENT OF MID-TERM AMBITIONS 2024 - 2028 GROWTH THE MAIN DRIVER TO SUCCEED Strong revenue growth in the REVENUES, MEUR core businesses with higher >1bn contribution will more than compensate for the expected 830 - 880 decline in the non-core business. Further topline imp
Slide 34: The CFO Agenda
Financial update THE CFO AGENDA IMPROVE PROFITABILITY AND CASH GENERATION PROVIDE FINANCIAL STABILITY AND FLEXIBILITY INCREASE RETURNS
Slide 35: Refinancing: Nordic Bond + RCF
Financial update REFINANCING NORDIC BOND + RCF THE MOST ATTRACTIVE OPTION CONSIDERATIONS TIMELINE > Work in progress with advisors > Reduce Main Facility to base requirements > Go to market either pre or post MEUR 100 – 140 summer break > Flexibility through RCF (and ARS/Factoring) > Refinancing con
Slide 36: Secure Minimum Equity, Sufficient Liquidity and Limit Leverage
Financial update PROVIDE FINANCIAL STABILITY AND FLEXIBILITY SECURE MINIMUM EQUITY, SUFFICIENT LIQUIDITY AND LIMIT LEVERAGE EQUITY RATIO, % LIQUIDITY, MEUR 33.9 31.7 33.4 30.9 147.7 25 30 30.2 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 CASH UNUSED ARS UNDRAWN RCF LEVERAGE RATIO, NIBD 1/ ADJUSTED EBITDA
Slide 37: The CFO Agenda
Financial update THE CFO AGENDA IMPROVE PROFITABILITY AND CASH GENERATION PROVIDE FINANCIAL STABILITY AND FLEXIBILITY INCREASE RETURNS
Slide 38: Increase Returns: Share Buy Back and Bond Redemption
Financial update INCREASE RETURNS SHARE BUY BACK AND BOND REDEMPTION / REPURCHASE SHARE BUY BACK BOND REDEMPTION / REPURCHASE > 10% Share Buy Back (May `22 – Jan. `23) > MEUR 75m redemption > 2.5% Share Buy Back (Nov. ´23 – Mar. ´24) > MEUR 10m repurchase in open market 2024, a year of consolidation
Slide 39: Liquidity Policy, Financing Strategy and Capital Allocation
Financial update LIQUIDITY POLICY CAPITAL ALLOCATION FINANCING STRATEGY 1) Support Organic growth (CAPEX & R&D) CONSERVATIVE, EFFICIENT AND EFFECTIVE 2) Provide flexibility to engage in equity > sufficient accessible liquidity at all times investments, JV´s, acquisitions > limit financial risks and
Slide 40: Market Update
MARKET UPDATE (
Slide 41: Market Trends
Market update MARKET TRENDS COMMERCIAL VEHICLE MARKET WITH GROWTH VS. A WEAKER PASSENGER CAR MARKET MARKET DEVELOPMENT REGION ∆ Q1-24 vs. Q1-23 ∆ 2024 vs. 2023 GLOBAL COMMERCIAL VEHICLES PRODUCTION, thousand units China +4.8% +5.2% +5.2% APAC w/o China +14.8% +5.6% 891 902 937 873 857 856 857 815 80
Slide 42: Market Forecasts
Market update MARKET FORECASTS REDUCED DEPENDENCY ON CHINA IN COMING YEARS GLOBAL COMMERCIAL VEHICLES PRODUCTION, thousand units INCLUDING CHINA EXCLUDING CHINA +6% +3% CAGR +6% +3% CAGR 3,854 3,987 4,136 2,458 2,519 2,638 3,636 3,781 2,316 2,342 3,456 2,202 2023 2024 2025 2026 2027 2028 2023 2024 2
Slide 43: New Business Wins, Customer Update
NEW BUSINESS WINS CUSTOMER UPDATE KONGSBERG AUTOMOTIVE // 43
Slide 44: Selected Customers
New business wins, customer update SELECTED CUSTOMERS
Slide 45: Top 20 Customers
New business wins, customer update TOP 2O CUSTOMERS *CUSTOMERS AS HIGHLIGHTED IN ANNUAL REPORT 2023 TOP 20 CUSTOMERS, SHARE OF KA’S EXTERNAL PRODUCT REVENUE CONTRIBUTION OF TOP 10 DIRECT CUSTOMERS Tier sales O EM sal e s ~60% E XT E R N AL P R O DUC T R EVE NUE: € 8 59 M 12.0% 11.4% 9.3% 8.6% 3.7% 3
Slide 46: New Business Wins - FY 2023
New business wins, customer update NEW BUSINESS WINS - FY 2023 LIFETIME REVENUES, MEUR PER BUSINESS SEGMENT PER AREA 40.7 234.7 326.1 989.4 989.4 26.7 MEUR MEUR 604.7 663.3 73.1 9.5 POWERTRAIN & CHASSIS TRUCK, TRAILER, BUS & COACHES AFTERMARKET PASSENGER CARS AGRICULTURE & CONSTRUCTION SPECIALTY PRO
Slide 47: New Business Wins FY 2023: Product Ranges Overview
New business wins, customer update NEW BUSINESS WINS - FY 2023 PRODUCT RANGES OVERVIEW GEARSHIFT SYSTEMS HOSES AND HOSE ASSEMBLIES 399.1 ELECTRIC ACTUATORS AIR COUPLINGS 206.1 CLUTCH ACTUATION 133.2 SYSTEMS SHIFT BY WIRE OTHER 92.0 HEAD RESTRAINTS 65.9 40.3 19.8 33.0 The product images are illustrat
Slide 48: New Business Wins - Q1 2024
New business wins, customer update NEW BUSINESS WINS – Q1 2024 LIFETIME REVENUES, MEUR PER BUSINESS SEGMENT PER AREA 9.8 22.5 97.3 450.0 144.7 450.0 MEUR MEUR 282.8 315.4 17.2 10.3 DRIVE CONTROL SYSTEMS TRUCK, TRAILER, BUS & COACH AFTERMARKET FLOW CONTROL SYSTEMS PASSENGER CARS AGRICULTURE & CONSTRU
Slide 49: New Business Wins Q1 2024: Product Ranges Overview
New business wins, customer update NEW BUSINESS WINS – Q1 2024 PRODUCT RANGES OVERVIEW TRENDING FOR RECORD YEAR WITH NEW BUSINESS WINS GEARSHIFT SYSTEMS 224.5 TUBES, HOSES AND HOSE ASSEMBLIES AIR CLUTCH ACTUATION COUPLINGS SYSTEMS 60.9 HEAD RESTRAINTS SHIFT BY WIRE OTHER 41.9 38.4 19.8 15.1 12.3 The
Slide 50: Q2 New Business Win on Gear Control Unit
New business wins, customer update 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 MA
Slide 51: New Business Win on Rotary Actuator for Electric Vehicles
New business wins, customer update NEW BUSINESS WIN ON ROTARY ACTUATOR USED IN ELECTRIC VEHICLES > COMPACT AND LIGHT > MAIN FUNCTION: DECOUPLING OF AN ELECTRIC MOTOR AND PARK LOCK > FIRST EU PRODUCTION FOOTPRINT OF AN ELECTRONIC ACTUATOR FROM KA MEUR 40 MARCH 14, MULLSJO, ESTIMATED LIFETIME 2024 SHA
Slide 52: Book-to-Bill Ratio Above 1
New business wins, customer update BOOK-TO-BILL BOOK-TO-BILL RATIO ABOVE 1 AS GUIDED, SECURING FUTURE GROWTH BOOK-TO-BILL PERFORMANCE, MEUR NBW (lifetime sales LTM) Revenues (LTM) Book-to-bill ratio (incl BRP) Book-to-bill ratio (excl BRP) 1.1 1.2 1.0 1.0 0.9 0.9 0.9 0.9 0.8 1.2 1.1 0.8 0.8 0.8 0.9
Slide 53: Growing and Winning
GROWING AND WINNING — BA
Slide 54: New Business Wins Lifecycle / Sales Process
Growing and winning NEW BUSINESS WINS LIFECYCLE / SALES PROCESS START-UP REPLACEMENT PROGRAM NBW AWARD DEVELOPMENT TESTING RAMP UP START OF END OF PRODUCT PHASE PHASE PHASE PRODUCTION PRODUCTION RETIREMENT COMMERCIAL VEHICLES AND 1-3 YEARS 1 -2 YEARS 1 YEAR 4-10 YEARS PASSENGER CARS NBW PRODUCTION O
Slide 55: Product Range: Commercial Vehicles
Growing and winning PRODUCT RANGE FLUID AND THERMAL COMMERCIAL VEHICLES MANAGEMENT CLEAN POWERTRAIN AND POWERTRAIN FLUID CHASSIS SOLUTIONS ASSEMBLIES ELECTRIC CHASSIS COOLANT ACTUATORS BATTERY COOLANT GEAR CONTROL UNITS FUEL CELL COOLANT SHIFT-BY-WIRE SHIFTERS VEHICLE DYNAMICS AIR MANAGEMENT AIR SUS
Slide 56: Product Range: Passenger Cars
Growing and winning PRODUCT RANGE PASSENGER CARS FLUID AND THERMAL MANAGEMENT POWERTRAIN AND CHASSIS SOLUTIONS CLEAN POWERTRAIN FLUID ELECTRIC ASSEMBLIES ACTUATORS CHASSIS COOLANT LINES AIR BATTERY COOLANT MANAGEMENT LINES AIR SUSPENSION FUEL CELL COOLANT LINES
Slide 57: Product Range: Off-Highway Vehicles
Growing and winning PRODUCT RANGE OFF-HIGHWAY VEHICLES FLUID AND THERMAL MANAGEMENT OFF-HIGHWAY SOLUTIONS CLEAN POWERTRAIN FLUID ELECTRIC ASSEMBLIES ACTUATORS COOLANT LINES STEERING COLUMNS PEDALS AND AIR THROTTLE MANAGEMENT CONTROLS AIR BRAKE SYSTEMS OTHER APPLICATION EXAMPLES
Slide 58: Product Range: Industrial Applications
Growing and winning PRODUCT RANGE INDUSTRIAL APPLICATIONS FLUOROPOLYMER HOSES CHEMICAL, FOOD AND BREATHING OIL, GAS BEVERAGE EQUIPMENT SEMICONDUCTOR PHARMA, MEDICAL, MARINE AND POWER COSMETICS Fluoropolymer hoses are an ideal problem solver for fluid transfer applications involving aggressive chemic
Slide 59: KA Growth Ambitions
Growing and winning KA GROWTH AMBITIONS TOTAL EXTERNAL REVENUES (MEUR), 2024 - 2028 PRODUCT SALES REVENUE BY STATUS, 2024 - 2028 ONGOING CONTRACTS EXPECTED WINS CAGR > 1bn +10% 710-730M 2024 2025 2026 2027 2028 2024 2025 2026 2027 2028
Slide 60: Key Takeaways
Growing and winning KEY TAKEAWAYS SOLID CORE BUSINESS WITH AMBITION FOR DOUBLE DIGIT % REVENUE GROWTH CAGR FROM 2024 TO 2028, RESULTING IN EXPECTED REVENUES OF > MEUR 1 BILLION BUSINESS WINS HAVE PRIMED THE FORWARD ORDER BOOK FOR FURTHER GROWTH IN KEY GROWTH AREAS ENVIABLE CUSTOMER LIST WITH GLOBAL
Slide 61: Growth Strategy
GROWTH STRATEGY (
Slide 62: Market Megatrends
Growth strategy MARKET MEGATRENDS ELECTRIFICATION AUTONOMIZATION SAFETY SUSTAINABILITY The global vehicle fleet is Vehicles are becoming more Safety continues to be a key Legislation is forcing the being transformed from ICE advanced and increasingly concern amongst end- whole supply chain to to fin
Slide 63: Regulations Influencing Market Development
Growth strategy REGULATIONS INFLUENCING MARKET DEVELOPMENT 2021 2019 2021 2022 Updated regulations for passenger vehicle (PV) and commercial 0% New legislations period vehicle (CV) markets drive further enhancements in conventional ←CO2 reduction from baseline -10% ICE engines and increase pressure
Slide 64: KA's Key Core Product Groups
Growth strategy KA’S KEY CORE PRODUCT GROUPS CONSISTING OF MISSION-CRITICAL PRODUCTS SUPPORTING MEGA TRENDS AND REGULATIONS DRIVE CONTROL SYSTEMS FLOW CONTROL SYSTEMS MEGA TRENDS: MEGA TRENDS: MEGA TRENDS: MEGA TRENDS: MEGA TRENDS: REGULATIONS: REGULATIONS: REGULATIONS: REGULATIONS: REGULATIONS: POW
Slide 65: Healthy Mix of Resilient, Harvesting and New Products
Growth strategy KA HAS A HEALTHY MIX OF RESILIENT, HARVESTING AND NEW PRODUCTS Higher content per vehicle Extend Sales potential Harvesting Content per vehicle THERMAL MANAGEMENT THERMAL MANAGEMENT GROWTH ELECTRIC ACTUATORS ELECTRIC ACTUATORS PRODUCTS GEAR CONTROL + CLUTCH GEAR CONTROL + CLUTCH ACTU
Slide 66: Managing All Transformation Phases in Commercial Vehicles
Growth strategy MANAGING ALL THE TRANSFORMATION PHASES IN COMMERCIAL VEHICLES GLOBAL COMMERCIAL VEHICLES TOTAL PRODUCTION IN MILLIONS AND FITMENT OF ELECTRIFICATION TYPE IN % 3,7 Mio 4,2 Mio 4,4 Mio Current prognosis shows approximately 1/3 of the global trucks in 2035 being BEV or FCEV 73% 71% 68%
Slide 67: Product Portfolio
PRODUCT PORTFOLIO (
Slide 68: Drive Control Systems
OFF-HIGHWAY POWERTRAIN AND CHASSIS SOLUTIONS SOLUTIONS ELECTRIC ACTUATORS GEAR CONTROL UNITS STEERING COLUMNS DRIVE CONTROL SYSTEMS The Drive Control Systems business area is a global leader in designing and manufacturing products for both the automotive and commercial vehicle markets, as well as fo
Slide 69: Electric Actuators
Product portfolio ELECTRIC ACTUATORS
Slide 70: Powertrain and Chassis Solutions: Product Roadmap
Product portfolio POWERTRAIN AND CHASSIS SOLUTIONS LEADING FUTURE PRODUCT ROADMAP – SELECTED CORE PRODUCTS FUTURE TRENDS KA’S SOLUTION EXAMPLES In production MULTI-SPEED E-AXLE SHIFT-BY-WIRE Next generation stalk shifter SHIFTERS contract signed with American OEM MUTI-SPEED CENTRAL In production, up
Slide 71: Powertrain and Chassis Solutions: ICE and BEV/FCEV Trends
Product portfolio POWERTRAIN AND CHASSIS SOLUTIONS KA BENEFITS FROM BOTH ICE AND BEV/FCEV TRENDS MID-TERM AND SHOWS A SUSTAINABLE PRODUCT PORTFOLIO LONG TERM RELEVANCE PRODUCT TRENDS MARKET DYNAMICS System supplier capabilities ICEV ICEV SAFETY REGULATIONS PHEV BEV FCEV TODAY FUTURE » Actuation and
Slide 72: Off-Highway Products: Product Roadmap
Product portfolio OFF-HIGHWAY PRODUCTS LEADING FUTURE PRODUCT ROADMAP – SELECTED CORE PRODUCTS FUTURE TRENDS IN OFF-HIGHWAY VEHICLES KA’S SOLUTION EXAMPLES ADOPTION OF MULTIPLE FUNCTION ELECTRIC ACTUATORS In development ELECTRIC ACTUATORS FOR DIFFERENTIAL LOCKS, >15 years experience with EPS product
Slide 73: Off-Highway Products: Electrification and Smart Farming
Product portfolio OFF-HIGHWAY PRODUCTS GROWING BUSINESS FOLLOWING ELECTRIFICATION AND SMART FARMING RELEVANCE PRODUCT TRENDS MARKET DYNAMICS ICEV ICEV Autonomous driving modes PHEV BEV FCEV SAFETY REGULATIONS TODAY FUTURE » Steer by wire systems enabling optional use of autonomous driving modes ELEC
Slide 74: Next-Generation Green Product Solutions in Electric Vehicles
Product portfolio NEXT-GENERATION GREEN PRODUCT SOLUTIONS IN ELECTRIC VEHICLES AND OFF-HIGHWAY GROWTH MARKET SEGMENTS GEAR CONTROL UNIT ELECTRIC ACTUATORS ELECTRIC ACTUATORS, STEERING COLUMN ICE, HEV, PHEV ICE, PHEV, BEV, FCEV POWER STEERING, MODULES, PEDALS & STEER-BY-WIRE THROTTLE CONTROLS > Q2 20
Slide 75: Flow Control Systems
FLUID AND THERMAL INDUSTRIAL FLUID AIR MANAGEMENT MANAGEMENT APPLICATIONS AIR SUSPENSION CLEAN POWERTRAIN HIGH PERFORMANCE FLUID ASSEMBLIES HOSES FLOW CONTROL SYSTEMS The Flow Control System business area designs and manufactures products for both the automotive and commercial vehicle markets, as we
Slide 76: Thermal Management Systems
Product portfolio THERMAL MANAGEMENT SYSTEMS
Slide 77: Flow Control Systems: Fluid Transfer, Thermal and Industrial
Product portfolio FLOW CONTROL SYSTEMS HIGHLY FOCUSED ON FLUID TRANSFER, THERMAL MANAGEMENT AND INDUSTRIAL PRODUCTS FUTURE TRENDS KA’S SOLUTION EXAMPLES In production, patented ABC COUPLINGS SYSTEM HIGH solutions HIGHLY EFFICIENT AIR MANAGEMENT PERFORMANCE Technology leader with up to COUPLINGS 50%
Slide 78: Flow Control Systems: Benefiting from EV Transition
Product portfolio FLOW CONTROL SYSTEMS GROWING BUSINESS BENEFITING FROM EV TRANSITION RELEVANCE PRODUCT TRENDS MARKET DYNAMICS Weight savings ICEV ICEV PHEV BEV FCEV CO2 EMISSION LEGISLATIONS TODAY FUTURE » Replacement of steel and rubber by high-performance plastic fluid transfer lines DRIVING SHIF
Slide 79: Industrial Hose Products and Markets
Product portfolio MARKET SEGMENTS EXAMPLES OF APPLICATIONS INDUSTRIAL HOSE PRODUCTS AND MARKETS INDUSTRIAL GAS DISTRIBUTION OIL & GAS WINNING AND REFINING CHEMICAL , OIL & GAS, BIOFUELS CHEMICAL PRODUCTION INDUSTRIAL FLUID PRODUCTS EXAMPLES IMPROVING PRODUCT FEATURES SAFETY BREATHING EQUIPMENT PROCE
Slide 80: Next-Generation Green Product Solutions
Product portfolio NEXT-GENERATION GREEN PRODUCT SOLUTIONS AIR MANAGEMENT FLUID MANAGEMENT THERMAL MANAGEMENT INDUSTRIAL SYSTEMS APPLICATIONS > ABC 2.0 and high- > Light weight & high- performance couplings performance materials > Highly modular and smart > Entering new areas in valves with integrate
Slide 81: Key Takeaways
Product portfolio KEY TAKEAWAYS KA HAS COMPLETED THE PORTFOLIO CLEAN UP AND IS NOW WELL POSITIONED INTRODUCING 5 STRONG, INNOVATIVE AND WELL-BALANCED CORE PRODUCT GROUPS SOLID CORE BUSINESS WITH AMBITION FOR DOUBLE DIGIT % REVENUE GROWTH CAGR FROM 2024 TO 2028, RESULTING IN EXPECTED REVENUES OF > ME
Slide 82: Key Takeaways
KEY TAKEAWAYS
Slide 83: Key Takeaways
Key takeaways KEY TAKEAWAYS HIGH FOCUS ON INNOVATION AND IMPROVEMENT CONTINUED FOCUS ON COST AND FOOTPRINT OPTIMIZATION LONG-TERM FINANCIAL AMBITIONS 2028 OF REVENUES ABOVE EUR 1.0 BN AND EBIT MARGIN AT OR ABOVE 8.5% REESTABLISHMENT OF KONGSBERG, NORWAY AS THE HEADQUARTERS ON THE WAY TO ACHIEVING 10
Slide 84: Key Investment Highlights
Key takeaways KEY INVESTMENT HIGHLIGHTS IMAGE FOCUSED AND RESILIENT PRODUCT PORTFOLIO HEALTHY BALANCE SHEET AND SIZEABLE AND SECURE ORDERBOOKS FIT TO CAPITALIZE ON THE GROWTH WITHIN COMMERCIAL VEHICLES STRATEGICALLY PLACED IN THE MARKET TO LEVERAGE THE GROWTH OF ELECTRIC VEHICLES WELL-POSITIONED TO
Slide 85: Q&A
O&A ( |
Slide 86: Mobility Solutions for the Future
MOBILITY SOLUTIONS FOR THE FUTURE