Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Q1 2022 Earnings Presentation
33 slides from Kongsberg Automotive Asa's earnings presentation, May 13, 2022
Slide 1: Kongsberg Automotive Q1 2022 Earnings Call
KONGSBERG AUTOMOTIVE Q1 2022 EARNINGS CALL MAY 13, 2022
Slide 2: Forward-Looking Statements and Non-IFRS Measures
Kongsberg Automotive Q1 2022 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: Agenda and Today's Presenters
Kongsberg Automotive Q1 2022 Earnings call AGENDA TODAY’S PRESENTERS EXECUTIVE SUMMARY FINANCIAL HIGHLIGHTS & NBW MARKET SUMMARY SEGMENT HIGHLIGHTS GROUP FINANCIAL UPDATE OUTLOOK JOERG BUCHHEIM FRANK HEFFTER Q&A CEO // Zurich (Switzerland) CFO // Zurich (Switzerland) KONGSBERG AUTOMOTIVE // 3
Slide 4: Executive Summary: Revenue Maintained; Earnings Pressured by Costs
Kongsberg Automotive Q1 2022 Earnings call EXECUTIVE SUMMARY REVENUE MAINTAINED; EARNINGS PRESSURED BY COSTS Comparisons are to 2021 results restated to exclude discontinued operation REVENUES ADJ. EBIT €218.8M €7.6M Impacted by abnormally high costs of raw materials, Increase of 0.6% vs. Q1 2021 se
Slide 5: At a Glance: Disruptions Varied Across Geographies and Products
Kongsberg Automotive Q1 2022 Earnings call AT A GLANCE NATURE AND IMPACT OF DISRUPTIONS VARIED ACROSS GEOGRAPHIES AND PRODUCTS REVENUES SUPPLY CHAIN SITUATION SHIFT GEAR NORTH ASIA INCL. EUROPE A M E R I CA CHINA P A S SE N GE R V E H I CLE S +16.4% -23.8% +0.0% C O M M E RC I AL V E H I CLE S > The
Slide 6: Executive Summary: Discontinued Operation
Kongsberg Automotive Q1 2022 Earnings call EXECUTIVE SUMMARY DISCONTINUED OPERATION > On February 28, 2022, Kongsberg Automotive has successfully completed the sale of its Interior Comfort Systems (ICS) business unit to Lear Corporation for an enterprise value of MEUR 175.0. > Kongsberg Automotive r
Slide 7: Market Summary
EXECUTIVE SUMMARY MARKET SUMMARY FINANCIAL HIGHLIGHTS & NBW SEGMENT HIGHLIGHTS GROUP FINANCIAL UPDATE OUTLOOK Q&A
Slide 8: Global Market Situation Intensified Due to Various Disruptive Factors
Market summary GLOBAL MARKET SITUATION INTENSIFIED DUE TO VARIOUS DISRUPTIVE FACTORS CURRENT TRIGGERS FOR DISRUPTION MACROECONOMIC FACTORS AFFECTING GLOBAL MARKET ENVIRONMENT +13% raw material prices in 2022 so far compared to 2021 averages as a result of the war in Ukraine COVID-19 (ESP. SHANGHAI L
Slide 9: Market Trends: Lower Activity Observed in All Markets
Market summary MARKET TRENDS LOWER ACTIVITY OBSERVED IN ALL MARKETS MARKET DEVELOPMENT REGION Q1-22 vs. Q1-21 2022 vs. 2021 GLOBAL China +5.9% -0.9% PASSENGER CAR -4.5% 23,6 APAC w/o China -6.2% +4.3% PRODUCTION, in 20,5 20,7 21,2 million units 18,8 19,7 17,8 Europe -18.3% +3.8% 16,6 12,6 North Amer
Slide 10: Market Forecasts - Outlook
Market summary MARKET FORECASTS - OUTLOOK GLOBAL PASSENGER CAR PRODUCTION, SALES IN MILLION UNITS, INCLUDING CHINA GLOBAL PASSENGER CAR PRODUCTION, SALES IN MILLION UNITS, EXCLUDING CHINA +22% +22% 88 92 94 94 61 63 64 64 77 81 52 56 2021 2022 2023 2024 2025 2026 2021 2022 2023 2024 2025 2026 GLOBAL
Slide 11: Financial Highlights & New Business Wins
EXECUTIVE SUMMARY MARKET SUMMARY FINANCIAL HIGHLIGHTS & NEW BUSINESS WINS SEGMENT HIGHLIGHTS GROUP FINANCIAL UPDATE Q&A
Slide 12: Revenues: Solid Q1 in Comparison with the Last Four Years
Financial highlights & new business wins REVENUES: SOLID Q1 IN COMPARISON WITH THE LAST FOUR YEARS QUARTERLY REVENUES (continuing operations), MEUR 224 218 219 216 215 2018 212 211 209 208 206 202 202 2019 190 193 2020 187 179 2021 2022 112 2018 2019 2020 2021 2022 2018 2019 2020 2021 2018 2019 2020
Slide 13: Adjusted EBIT: Q1 2022 Earnings Severely Impacted by Extra Costs
Financial highlights & new business wins ADJUSTED EBIT: Q1 2022 EARNINGS SEVERELY IMPACTED BY THE EXTRA COSTS RELATED TO THE SEMICONDUCTOR AND RAW MATERIAL CRISIS QUARTERLY ADJ. EBIT (continuing operations), MEUR AND % OF REVENUES 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 23,7 10.6% 9.6% 21,
Slide 14: Free Cash Flow: Strict Spend Control Could Not Compensate Situation
Financial highlights & new business wins FREE CASH FLOW: STRICT SPEND CONTROL COULD NOT COMPENSATE SEMICONDUCTOR AND RAW MATERIAL SITUATION Q1 2022 FCF DETAILS FREE CASH FLOW1 (continuing operations), MEUR Operating activities -1.1 Therein: Overall NWC increase -13.9 Investing activities -4.1 19 16
Slide 15: Total Cash Flow – Continuing and Discontinued Operations
Financial highlights & new business wins TOTAL CASH FLOW – CONTINUING AND DISCONTINUED OPERATIONS TOTAL CASH FLOW, MEUR Continuing operations Discontinued operations 123.8 Mainly proceeds for intangible -4.1 and tangible assets Mainly partial repayment of bond notes and RCF -109.5 +127.9 Mainly proc
Slide 16: Book-to-Bill Performance: Favorable Business Volumes Sustained
Financial highlights & new business wins BOOK-TO-BILL PERFORMANCE (CONTINUING OPERATIONS): FAVORABLE BUSINESS VOLUMES SUSTAINED IN Q1 2022 BOOK-TO-BILL PERFORMANCE, MEUR New business wins (lifetime sales1, last 12 months in EUR) Revenues (last 12 months in EUR) Book-to-bill ratio 1,4 1,4 1,3 1,1 1,1
Slide 17: Segment Highlights
EXECUTIVE SUMMARY MARKET SUMMARY FINANCIAL HIGHLIGHTS & NBW SEGMENT HIGHLIGHTS GROUP FINANCIAL UPDATE Q&A
Slide 18: Segment Financials: Segments Impacted by Semiconductor and Raw Materials Situation
Segment highlights SEGMENT FINANCIALS: SEGMENTS IMPACTED BY SEMICONDUCTOR AND RAW MATERIALS SITUATION POWERTRAIN & CHASSIS SPECIALTY PRODUCTS 110 110 108 111 105 104 106 102 95 89 REVENUES, MEUR ADJUSTED EBIT MARGIN, % 6.9% 5.9% 5.7% 17.9% ADJUSTED EBIT1, MEUR 4.9% 13.1% 12.4% 4.0% 18,8 7,5 6,5 13,6
Slide 19: Segment Highlights: Powertrain & Chassis
Segment highlights SEGMENT HIGHLIGHTS POWERTRAIN & CHASSIS % Adj. EBIT margin (%) REVENUES, MEUR Revenues in Powertrain & Chassis slightly increased by ADJ. EBIT, MEUR Adjusted EBIT was MEUR 4.4 in the first quarter 2022, a +1% MEUR 0.8 (+0.7%) to MEUR 110.7 in the first quarter 2022 significant dec
Slide 20: Segment Highlights: Specialty Products
Segment highlights SEGMENT HIGHLIGHTS SPECIALTY PRODUCTS % Adj. EBIT margin (%) REVENUES, MEUR ADJ. EBIT, MEUR +1% Excluding the cable-related part of the Off-Highway business, which is included in discontinued operation, 17.9 8.6 Adjusted EBIT was MEUR 9.1 in the first quarter of 2022, a 105 106 re
Slide 21: Group Financial Update
EXECUTIVE SUMMARY MARKET SUMMARY FINANCIAL HIGHLIGHTS & NBW SEGMENT HIGHLIGHTS GROUP FINANCIAL UPDATE OUTLOOK Q&A
Slide 22: Q1 2022 Revenues and Adj. EBIT: Positive Translation Effects Compensate Decline
Group financial update Q1 2022 REVENUES AND ADJ. EBIT: POSITIVE TRANSLATION EFFECTS COMPENSATE DECLINE IN SALES VOLUME; ADJ EBIT IMPACTED BY SUPPLY CHAIN CRISIS REVENUES (continuing operations), MEUR ADJ. EBIT (continuing operations), MEUR Impact of global supply chain situation 217.5 21,4 +1.6 +7.3
Slide 23: Q1 2021 vs Q1 2022 Net Income Development
Group financial update Q1 2021 VS Q1 2022 NET INCOME DEVELOPMENT ADJUSTED EBIT NET INCOME DEVELOPMENT (continuing operations), MEUR » Adj. EBIT lower by MEUR 13.8 compared to Q1 2021 due to the 17.2 abnormally significant disruptions in the supply chain throughout the automotive sector. INTEREST -13
Slide 24: EBIT & Net Income (Continuing Operations)
Group financial update EBIT & NET INCOME (CONTINUING OPERATIONS) 2018 2019 2020 2021 2022 EBIT (Non-adjusted*), MEUR 49 NET INCOME, MEUR 29 47 45 16 17 16 21 9 18 7 8 7 17 6 15 4 13 14 4 12 11 10 10 3 3 2 2 7 8 8 8 1 7 7 0 -2 -12 -522 -18 -531 -58 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY * Adjusted EBIT is EBI
Slide 25: Liquidity Development for the Whole Group
Group financial update LIQUIDITY DEVELOPMENT FOR THE WHOLE GROUP LIQUIDITY DEVELOPMENT, MEUR Cash Unutilized Securitization facility Undrawn RCF -3.3 -5.6 -8.2 -76.9 +130,5 220.7 -20.0 200.7 +6.4 -6.7 +22,2 +5.0 110.7 148.3 +11.3 -2.3 110.7 58.3 60.0 60.0 60.0 +20,0 50.0 30.0 30.0 Q4 2021 Adjusted R
Slide 26: Net Financial Items (Continuing Operations)
Group financial update NET FINANCIAL ITEMS (CONTINUING OPERATIONS) Other financial items Net interest NET FINANCIAL ITEMS, MEUR Currency effects Account receivables securitization - Expenses FOREX GAINS/LOSSES 2.6 The foreign exchange effects in Q1 2022 are made up of: > realized foreign exchange lo
Slide 27: Financial Ratios (Whole Group)
Group financial update FINANCIAL RATIOS (WHOLE GROUP5) Excluding IFRS16 Incl. IFRS 16 effect ADJUSTED GEARING RATIO1, NIBD2/EBITDA, LTM ADJUSTED ROCE1, %, LTM 4,2 3,8 11,0 10,3 3,7 9,2 8,8 3,3 2,7 2,8 6,4 2,2 2,3 2,4 6,2 1,7 3,7 3,5 4,3 3,5 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3
Slide 28: Outlook
EXECUTIVE SUMMARY MARKET SUMMARY FINANCIAL HIGHLIGHTS SEGMENT HIGHLIGHTS GROUP FINANCIAL UPDATE OUTLOOK Q&A
Slide 29: Shift Gear Program: Portfolio Transformation Is Underway
Outlook SHIFT GEAR PROGRAM PORTFOLIO TRANSFORMATION IS UNDERWAY Our portfolio transformation aims to ensure that all our business units are among the top three in their markets with a diversified customer structure and a low-risk exposure We will consider divestments or investments according to this
Slide 30: Outlook 2022 - 1/2: Continue to Execute on Shift Gear Program
Outlook OUTLOOK 2022 - 1/2 WE WILL CONTINUE TO EXECUTE ON OUR SHIFT GEAR PROGRAM GLOBAL SITUATION CAUTIOUS GUIDANCE > The indirect impact of the war combined with the > The uncertainty of the current global environment partial COVID-lockdowns in China remains difficult means that our guidance is cau
Slide 31: Outlook 2022 - 2/2: Initiating the Share Buyback
Outlook OUTLOOK 2022 - 2/2 INITIATING THE SHARE BUYBACK TO REWARD ALL OUR STAKEHOLDERS INITIATING THE SHARE BUYBACK > We have over the last months gained a better understanding of how the global situation impacts our earnings and cash development. > We are therefore confident that our current cash >
Slide 32: Q&A
EXECUTIVE SUMMARY MARKET SUMMARY FINANCIAL HIGHLIGHTS & NBW SEGMENT HIGHLIGHTS GROUP FINANCIAL UPDATE Q&A
Slide 33: Kongsberg Automotive
KONGSBERG AUTOMOT IVE