Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Investor Presentation (November 2019)
25 slides from Kongsberg Automotive Asa's investor presentation, November 2019
Slide 1: Kongsberg Automotive Investor Presentation November 2019
Kongsberg Automotive Investor Presentation November 2019
Slide 2: Forward-Looking Statements and Non-IFRS Measures
Kongsberg Automotive 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 circumstances, which
Slide 3: Today's Presenter
Today’s Presenter Henning Jensen, President and Chief Executive Officer Professional experience Kongsberg Automotive President and Chief Executive Officer June 2016 - Present Kistefos AS Chief Executive Officer 2011 - 2015 RHI AG Chief Executive Officer, Chief Financial Officer and Chairman 2010 – 2
Slide 4: Kongsberg Automotive at a glance (1/2)
Who we are Kongsberg Automotive at a glance (1/2) Overview Selected KPIs Revenue Adjusted EBIT ➢ Headquartered in Zurich, Switzerland and listed on the Oslo Stock Exchange (2017A / 2018A / Q3 2019 LTM) (2017A / 2018A / Q3 2019 LTM) ➢ 3 segments: Interior, Powertrain & Chassis, Specialty Products ▪ I
Slide 5: Kongsberg Automotive at a glance (2/2)
Who we are Kongsberg Automotive at a glance (2/2) Interior Powertrain & Chassis Products Specialty Products Interior Comfort Transmission Light Duty Cables Vehicle Dynamics Air Couplings FTS Off Highway Systems Control Revenue % 6% 20% 35% 4% 9% 12% 14% 2018A Top 3 in pedals Market Fragmented market
Slide 6: Kongsberg Automotive benefits from a well diversified customer base
Our Customers Kongsberg Automotive benefits from a well diversified customer base 2 Share of KA’s Contribution of top 10 direct customers Total Revenue 11% 10.6% Top 10 customers 10% ~55% 9.0% 9% 8.6% Revenue 2018A: €1,123mm 8% 7% 6.1% 6.0% 5.9% 6% 5.7% 0.1% 5.4% 5.2% 5.0% 4.6% 5% 1.0% 0.3% 4.5% 0.9
Slide 7: Revenues and adjusted EBIT
Financial Performance Revenues and adjusted EBIT Revenue and adjusted EBIT figures have improved substantially over the last years Revenues Adjusted EBIT MEUR MEUR and percent 2016 2017 2018 2019 2016 2017 2018 2019 7.0% 7.2% 7.2% 307 7.0% 288 6.9% 6.6% 280 288 294 288 293 5.4% 5.1% 4.8% 279 5.2% 5.
Slide 8: EBIT and net income
Financial Performance EBIT and net income Ongoing YoY growth driven by positive performance & lower restructuring costs EBIT Net Income MEUR MEUR 2016 2017 2018 2019 20.3 19.2 17.9 15.6 14.8 15.0 14.1 13.8 12.7 13.0 11.9 10.5 9.7 8.0 7.7 7.9 6.2 5.7 4.9 4.4 4.2 3.3 2.9 1.6 2.1 -0.2 0.2 0.3 Q1 Q2 Q3
Slide 9: Historical financials overview
Financial Performance Historical financials overview The growth in top-line and profitability is a result of the changes initiated in 2016 Revenue performance (€m) Key financials (€m) P&L 1173 €m 1200 FY 2016* FY 2017* FY 2018* FY 2019E 1150 1123 1100 1057 Revenue 986 1,057 1,123 1,173 1050 1000 986
Slide 10: Main areas of KA's growth potential
Future Growth Main areas of KA’s growth potential In spite of current market headwinds we are still well positioned for future growth Underlying Premiumization OEM outsourcing Market share gain market decline ▪ Weighted growth ▪ Content increase for ▪ OEMs reducing ▪ Focus on white spots rates in ou
Slide 11: New business wins – KA Group
Future Growth New business wins – KA Group Solid growth potential despite weaker momentum due to market development New business wins per quarter (per annum revenues) New business wins per quarter (lifetime revenues*) MEUR MEUR 140 600 561 122 121 537 120 110 500 459 463 99 100 400 77 349 338 339 80
Slide 12: Revenue projections (1/2)
Future Growth Revenue projections (1/2) A high level of our revenue projections are supported by existing and booked programs KA Group revenue projections – illustrative example by product status 1.800 ▪ The product/model cycles in the automotive industry vary from three to ten years, primarily depe
Slide 13: How our business works (2/2)
Future Growth How our business works (2/2) Illustrative example of the margin progression through the program life-cycle Project timeline RFQ Award SOP EOP % Margin “New programs” “Mature programs” (Illustrative example) Time RFQ = Request for Quotation SOP = Start of Production EOP = End of Product
Slide 14: Passenger car production volumes
Market Update Passenger car production volumes The global passenger car production is forecasted to decrease only slightly in 2020 120 Units in millions Growth 19-20 100 -5.1% 94.2 -0.5% 2.6 89.4 89.0 0.9% 3.4 2.0 2.0 Rest of World 3.4 3.5 South America 4.1% 80 17.0 16.7 16.2 North America -2.8% 60
Slide 15: Truck and bus production volumes
Market Update Truck and bus production volumes The global commercial vehicle production is forecasted to decrease strongly in 2020 Units in millions 4 Growth -2.4% 19-20 3.63 -7.1% 3.54 2.9% 0.15 3.29 Rest of World 0.61 0.17 South America 13.2% 3 0.64 0.50 North America -21.0% 0.65 0.65 0.66 Europe
Slide 16: Financial overview
Outlook and Summary Financial overview 2019 Outlook Bridging FY 2018 to the FY 2019 outlook, the following account for the main deviations (MEUR): Current outlook / November 28, 2019 Revenue growth of +50. Expected Adj. EBIT Effect: +11 MEUR 2017 2018 2019 The following items have the expected effec
Slide 17: Free cash Flow
Outlook and Summary Free cash Flow* 30 MEUR ▪ 2019 Cash Flow influenced by declining end markets. 25 20 ▪ 2019 Working Capital development was unsatisfying due to 15 internal processes. 14 10 7 ▪ 2020 Cash Flow from operations expected to generate MEUR 10 +10 excluding working capital effects. (Grey
Slide 18: Key investment highlights & outlook
Outlook and Summary Kongsberg Automotive Key investment highlights & outlook ▪ Kongsberg Automotive – a truly global mid-sized automotive supplier with a diversified customer base ▪ Kongsberg Automotive is a manufacturer and supplier of components, systems and aftermarket products, primarily for the
Slide 19: Backup Slides
Backup Slides NS KONGSBERG AUTOMOTIVE VY 19
Slide 20: New business wins by segment
New business wins by segment New business wins secure future growth development in all segments New business wins per quarter (per annum revenues) New business wins per quarter (lifetime revenues*) MEUR MEUR 130 600 122 121 561 SPP SPP 120 550 537 PAC PAC INT 110 INT 110 500 135 99 459 463 100 148 5
Slide 21: Key financial policies and governance
Key financial policies and governance ▪ Leverage target: 1.5x net debt / EBITDA Leverage targets ▪ Further deleveraging ▪ Target equity ratio1 of 35% Liquidity ▪ Minimum operational cash on balance sheet: €20m Investments ▪ Select investments in key product / niche areas based on strict return perfo
Slide 22: Interior Comfort Systems
Interior Segment Interior Revenue 2018A: 26%1 €286mm Description % of Interior revenue2 Product End-markets ➢ Exclusively focused on LDV market Interior Comfort Systems ➢ Core Interior Comfort Systems – strong market growth – Technology leader in integration of the various seat functionalities 77% –
Slide 23: Transmission control
Powertrain & Chassis Segment P&C Revenue 2018A: 39%1 €437mm Description % of P&C revenue2 Product End-markets ➢ Technology shift from mechanically based systems towards electronically controlled actuation systems ➢ Product range include: – AMT Actuators and PRND Actuators Transmission control – Clut
Slide 24: Air Couplings
Specialty Products segment Speciality Revenue 2018A: Products €400mm 35%1 Description % of SP revenue Product End-markets ➢ Focused on air brake applications for HDVs Air Couplings ➢ Technology leader with growing market share – Premium priced products 27% – Savings to OEMs through simplified proces
Slide 25: Glossary
Glossary Term Meaning AMT Automated Manual Transmission EV Electric Vehicle FTS Fluid Transfer System HDV Heavy Duty Vehicle HMI Human Machine Interface HR / AR Headrest / Armrest ICE Internal Combustion Engine LDC Light Duty Cable LDV Light Duty Vehicle OE Original Equipment OEM Original Equipment
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