Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — DNB Markets SME Conference April 2014
33 slides from Kongsberg Automotive Asa's conference presentation, April 2014
Slide 1: Kongsberg Automotive
Kongsberg Automotive Presentation to DNB Market SME Conference 1
Slide 2: A brief introduction
A brief introduction ▸ Kongsberg Automotive provides world class products to the global vehicle industry ▸ Our products enhance the driving experience – making it safer, more comfortable and sustainable ▸ Revenues of close to EUR 1.0 billion ▸ Over 10.000 employees ▸ Global presence – Over 40 locati
Slide 3: Our mission statement
Our mission statement Kongsberg Automotive provides world class products to the global vehicle industry Our products are enhancing the driving experience, making it safer, more comfortable and sustainable 3
Slide 4: Our Business Concept
Our Business Concept Three levers to create stakeholder value Continuous improvement Drive innovations Strategic suppliers Offer end user value Global reach Competence partner STAKEHOLDER VALUE Hold a leading position in our segments Work with the most demanding global customers 4
Slide 5: Key Figures
Financials and history KEY FIGURES 5
Slide 6: 2013 Group financial highlights
2013 Group financial highlights ▸ 2013 revenues of EUR 991 million ▸ EBITDA of EUR 97 million (9.8%) – up EUR 21 mill. from 2012, despite lower revenues ▸ Gearing ratio further reduced – to 2.5 x NIBD/EBITDA ▸ Improved financial flexibility 6
Slide 7: Historical sales development
Historical sales development Since 1996: 7 strategic acquisitions Strengthening portfolio and market share, while expanding a global low cost manufacturing footprint GMS acquisition 1.100 1.000 900 800 700 EUR Million 600 500 400 300 200 100 0 1987 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2
Slide 8: Broad global customer base
NS KONGSBERG AUTOMOTIVE Broad global customer base " TD, => = €§ @ © 4 SCANIA sani es mar IVECO Bear GD PAAR EEE Quear.. inser Il sacra YQ wren a atin Oras @BoscH Me STIHL’ 8 |= © 8 maser” PAT @O «iD GS ©
Slide 9: Top 20 Customers (KA Group)
Top 20 Customers (KA Group) 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Figures are percentage of total KA sales in 2013 9
Slide 10: Combining global reach with local support
Combining global reach with local support Employees by area % of total 24 % Others 26 % Low cost 11 % China Medium cost 10 % Mexico 29 % High cost 10.100 employees 10
Slide 11: Our Business
Markets and Products OUR BUSINESS 11
Slide 12: Business areas
Business areas Interior Driveline Fluid Transfer Driver Control 30% of revenues 28% of revenues 17% of revenues 25% of revenues MARKET MARKET MARKET MARKET Safety and comfort related Gear shift systems for light duty Fluid handling systems Driver control systems, cabin products for vehicle interiors
Slide 13: Driveline: Segment position and main competitors
DRIVELINE Segment position Main competitors Gear shift systems for light duty vehicles #Top 3 globally Gear shift systems #1 global supplier of seat comfort features #2 #2globally on seat in Europe climate systems Automatic shifters #1 in North America Shift cables 13
Slide 14: Interior: Segment position and main competitors
INTERIOR Segment position Main competitors Safety and comfort related products for vehicle interiors #1 global supplier Seat comfort features #1 global supplier of seat comfort features # 1globally #2 in Europe on seat Pneumatic seat climate systems support #2 globally Seat climate systems 14
Slide 15: Driver Control: Segment position and main competitors
DRIVER DRIVER CONTROL CONTROL Segment position Main competitors Driver control systems and chassis related products to commercial- and off-highway vehicles #1 in Europe Clutch actuation manual transmissions #1 in Europe Gearshift systems manual transmissions 15
Slide 16: Fluid Transfer: Segment position and main competitors
FLUID TRANSFER Segment position Main competitors Fluid handling systems for light duty, industrial and commercial vehicles # 1 in Europe Air brake couplings #1 in North America High temperature oil- and fuel line 16
Slide 17: Key growth trends
Key growth trends Reduced fuel Safety Comfort BRIC/ Connectivity consumption Globalization Source: European Road Transport Research Advisory Council, J.D.Power, Shell, Roland Berger KPMG International, EU Commission, IBM Global Business Service, Oliver Wyman 17
Slide 18: Energy efficient drivelines - Hybrid systems
Energy efficient drivelines - Hybrid systems ▸ Bringing innovations to the market ▸ First contract for On-Board Chargers to European OEM – Based on technology developed by JV company e-Power – For use in in Plug-in Hybrid City Buses, later other vehicles to be sold worldwide MEUR 10 value contract –
Slide 19: Energy efficient drivelines - Shift by wire for Volvo Cars
Energy efficient drivelines - Shift by wire for Volvo Cars Concept Estate ▸ Innovative KA technology and expertise in Shift by wire systems for VCC’s Concept Estate ▸ Shifter equipped with state of the art technology. Sets a new standard in terms of – safety, – weight – packaging – styling 19
Slide 20: Comfort products
Comfort products Seat Comfort Systems – selected programs BMW 7 Series ▸ Lower segment cars taking more and more comfort features (heat and support) Europe ▸ Improved standard seat content and Chevrolet Malibu features in mid segment vehicles (heat, ventilation and support) ▸ EU OEMs setting the sta
Slide 21: Ultimate comfort systems through scalability and modularity
Ultimate comfort systems across platforms through scalability & modularity ▸ Based on in-house developed and manufactured standardized building blocks; pumps, valves, seat heat elements, fans etc. ▸ All are scalable for ultimate comfort control, cost and packaging needs ▸ Fully programmable features
Slide 22: Significant booked business in BRIC in 2013
Significant booked business in BRIC in 2013 40 % 30 % 22 % FY 2013: 200 MEUR 8% Global * Per annum value ‣ 30 % of total new business in last 12 months booked in BRIC countries vs. current BRIC revenue of MEUR 90 ‣ KA continues to grow in the emerging markets 22
Slide 23: KA an innovative technology partner for global OEMs
KA an innovative technology partner for global OEMs ▸ KA providing SBW solutions to both the Automotive and Truck OEMs ▸ KA focuses on power electronics for hybrid and electric vehicles ▸ Providing leading safety and comfort features within our segments ▸ Developing strong global teams to grow with
Slide 24: Market & Trends
NS KONGSBERG AUTOMOTIVE _—— , a \ MARKET & TRENDS ‘ x
Slide 25: Global passenger car production per region
Global passenger car - production per region Near-term volatility, Long-term growth trajectory CAGR 2013-18 120 BRIC 7.3 % Millions TRIAD 1.5 % 100 80 60 40 20 0 China India Russia Brazil Rest Europe North America Japan/Korea Source: IHS ‣ Weak growth in TRIAD markets (Europe, North America and Japa
Slide 26: Global Commercial Vehicle production per region
Global Commercial Vehicle production per region Growth industry in spite of temporary market fluctuations Trucks with GVW above 6t CAGR 2013-18 Millions BRIC 7.7 % 04 TRIAD 5.0 % 04 03 03 02 02 01 01 00 2012 2013 2014 2015 2016 2017 2018 China India Russia Brasil Brazil Rest Europe Japan/ Korea Nort
Slide 27: Market summary and outlook
Market summary and outlook Global industry growth Country/region Expected 2014 Outlook growth rate • Europe looks to be turning the corner, but some time before reaching 2008 levels • With the positive turn of GDP growth, we expect a slightly positive development, but still far off reaching 2008 lev
Slide 28: Financials
w& KONGSBERG AUTOMOTIVE # \ W e : 3 3 i FINANCIALS
Slide 29: Consolidated income statement
Consolidated income statement EUR Million Twelve months ending ► Revenue run rate in line with full 31.12.12 31.03.13 30.06.13 30.09.13 31.12.13 year guiding Revenues 1001.1 985.4 985.8 981.5 990.9 OPEX -924.1 -906.6 -898.3 -884.5 -893.8 EBITDA 77.0 78.9 87.5 97.0 97.1 ► EBITDA for the year improved
Slide 30: ROCE (Ltm)
ROCE (Ltm) Revenues (Ltm) ROCE (Ltm) EUR million Percent 1,001 10.3% 10.9% 985 986 991 982 8.1% 5.8% 5.9% Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 EBIT and EBIT margin (Ltm) 75.3 EUR million and percent Avg. Capital Employed and turnover (Ltm) EUR million and T
Slide 31: Available funds and utilization
Available funds and utilization Liquidity reserve Credit utilization RRCF EUR million EUR Million 450 Changes in facility agreement 140 Available credit 76.4 400 120 Drawn credit Unutilized 350 100 revolving credit 52.1 338 facility 300 318 80 Unutilized 298 facility 278 250 261 60 258 57.1 54.4 40
Slide 32: Financial ratios
Financial ratios NIBD Equity EUR million EUR million 193.4 289 297 275 265 189.0 189.4 189.6 241 184.7 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 NIBD/EBITDA Equity ratio Times Percent 3.8 3.8 27.6% 27.4% 3.1 2.7 24.8% 24.8% 25.2% 2.5 Q4 2012 Q1 2013 Q2 2013 Q3 2
Slide 33: Our ambitions
Our ambitions Automotive Commercial Vehicle Revenue Profit before growth Grow Margin Improve Sustain Group Revenue Selective growth focus Margin Gradually improving margin ROCE > 15% by 2015 NIBD/EBITDA < 2x by 2015 ▸ Our ambition is to grow earnings, sharply improve our return on capital, and great
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