Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Kongsberg Automotive New — Q4 2024 Earnings Presentation
33 slides from Kongsberg Automotive Asa's earnings presentation, Feb 25, 2025
Slide 1: Kongsberg Automotive Q4 2024
KONGSBERG AUTOMOTIVE Q4 2024 FEBRUARY 25, 2025
Slide 2: Forward-Looking Statements and Non-IFRS Measures
Kongsberg Automotive Q4 2024 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: Today's Presenter and Agenda
Kongsberg Automotive Q4 2024 Earnings Call TODAY’S PRESENTER AGENDA EXECUTIVE SUMMARY MARKET UPDATE FINANCIAL UPDATE SUMMARY & OUTLOOK Q&A CHRISTIAN JOHANSSON PRESIDENT & CEO AND CFO KONGSBERG AUTOMOTIVE // 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY KONGSBERG AUTOMOTIVE KONGSBERG AUTOMOTIVE // // 44
Slide 5: Full Year 2024 Improved Financial Performance Despite Weak Market Demand
Executive summary FULL YEAR 2024 IMPROVED FINANCIAL PERFORMANCE DESPITE WEAK MARKET DEMAND FY 2023 FY 2024 REVENUES MEUR 884.9 788.2 EBIT MEUR -19.7 18.7 EBIT MARGIN -2.2 2.4 % RETURN ON CAPITAL EMPLOYED -5.9 +5.8 % FREE CASH FLOW MEUR -34.9 -20.3 BUSINESS WINS MEUR 989.4 1,526.0 KONGSBERG AUTOMOTIV
Slide 6: Revenues Full Year 2024
Executive summary REVENUES FULL YEAR 2024 WEAK AUTOMOTIVE AND OFF-ROAD MARKETS PARTICULARLY IN H2 2024 NORTH ASIA SOUTH EUROPE 47%* TOTAL KA AMERICA 37%* (INCL. CHINA) 12%* AMERICA 4%* FULL YEAR 2024 VS 2023 -13.8% -9.4% -9.9% +20.2% -10.7% H2 2024 VS 2023 -16.5% -14.4% -16.6% +19.2% -14.5% *OF KA R
Slide 7: Performance Excellence
Executive summary PERFORMANCE EXCELLENCE HEALTH AND SAFETY IMPROVEMENT SUPPLY CHAIN IMPROVEMENT > Plants with Zero Accidents >1 year stable at 80 % > Reduced inventory days by 9 days at yearend > First aid cases reduced by -35% > Focus on lead time reduction by increased local sourcing, reduction of
Slide 8: Sustainability 2024 Highlights
Executive summary SUSTAINABILITY 2024 HIGHLIGHTS 57% SHARE OF RENEWABLE RESOURCES IN TOTAL ENERGY CONSUMPTION COMPARED TO 52% IN 2023 JOINED THE UNITED NATIONS GLOBAL COMPACT IMPROVED ECOVADIS 15% SUSTAINABILITY RATING TO 60 SCORE APPROX. REDUCTION IN TOP 14% IN AUTOMOTIVE SCOPE 1 AND 2 CO 2e INDUST
Slide 9: Business Wins Q4 2024
Executive summary BUSINESS WINS Q4 2024 LIFETIME REVENUES, MEUR PER BUSINESS SEGMENT PER AREA 4.5 73.2 8.1 110.3 295.2 295.2 58.8 MEUR MEUR 180.4 144.3 10.8 DRIVE CONTROL SYSTEMS TRUCK, TRAILER, BUS & COACHES AFTERMARKET FLOW CONTROL SYSTEMS PASSENGER CARS OFF ROAD* DRIVELINE INDUSTRIAL * Includes A
Slide 10: Flow Control System Business Wins
Executive summary FLOW CONTROL SYSTEM BUSINESS WINS CONTRACT EXTENSION FOR FLUORO-COMP® AND THERMAL MANAGEMENT SYSTEMS AIR SUSPENSION LINES STAINLESS-STEEL BRAIDED HOSES OVER MEUR 24 OVER MEUR 25.5 OVER MEUR 56 IN ESTIMATED LIFETIME REVENUE IN ESTIMATED LIFETIME REVENUE IN ESTIMATED LIFETIME REVENUE
Slide 11: Drive Control System Business Wins
Executive summary DRIVE CONTROL SYSTEM BUSINESS WINS CONTRACT EXTENSION FOR PEDAL GROUP SYSTEMS OVER MEUR 47 IN ESTIMATED LIFETIME REVENUE ANNOUNCED ON DECEMBER 23, 2024 > BRAKE AND THROTTLE PEDAL COMBINED SYSTEMS USED IN GOLF CARTS AND UTILITY VEHICLES > PEDAL BOXES ARE DESIGNED WITH DIFFERENT RETU
Slide 12: Business Wins Lay a Foundation for Profitable Growth
Executive summary BUSINESS WINS LAY A FOUNDATION FOR PROFITABLE GROWTH Revenues Business Wins Incremental Business Wins Extensions Book-to-bill ratio (LTM in MEUR) (lifetime sales, LTM in MEUR) (lifetime sales, LTM in MEUR) 2.1 2.0 1.9 1.4 1,765 1,644 1.1 1,526 0.9 0.8 0.8 0.8 0.7 785 1,241 677 474
Slide 13: Products That Hit the Road in 2024
Executive summary PRODUCTS THAT HIT THE ROAD IN 2024 GEAR CONTROL UNIT ARC ROTARY ACTUATOR FLUID TRANSFER ASSEMBLIES LIFETIME VALUE: 523M€, CONTRACT EXTENSION LIFETIME VALUE: 26M€, NEW BUSINESS LIFETIME VALUE: 34M€, NEW BUSINESS ANNOUNCED: APRIL 26, 2024 ANNOUNCED: MARCH 10, 2023 ANNOUNCED: DECEMBER
Slide 14: Commercial Vehicle Market Trends
Executive summary COMMERCIAL VEHICLE MARKET TRENDS KA WELL POSITIONED FOR FURTHER GROWTH Commercial Vehicle Market Trends - Leading Global OEMs: KA response to Commercial Vehicle Market Trends: > Common group vehicle platforms and shared technology > Scalable Existing Solutions (Raufoss ABC Coupling
Slide 15: Current Tariff Situation for Inbound Supply in North America
Executive summary CURRENT TARIFF SITUATION FOR INBOUND SUPPLY IN NORTH AMERICA China to US tariffs valid from Feb 2025 STEEL, IRON, ALU, ELECTRONICS CANADA China to MX&CA tariffs (25%) valid from Jan 25 US to Canada/Canada to US tariffs on hold ALL US to Mexico/Mexico to CHINA USA US tariffs on hold
Slide 16: Key Priorities 2025
Executive Summary KEY PRIORITIES 2025 CONTINUE STRONG FOCUS ON COST, EFFICIENCY, PERFORMANCE EXCELLENCE AND CASH DELIVER BUSINESS WINS AT TARGETED PROFITABILITY AT CUSTOMERS' START OF PRODUCTION THE IMPORTANCE OF FLEXIBILITY AND DECISIVE ACTIONS WITH NO DELAY WIN BUSINESS KONGSBERG AUTOMOTIVE KONGSB
Slide 17: Market Update
MARKET UPDATE KONGSBERG AUTOMOTIVE KONGSBERG AUTOMOTIVE // // 17 17
Slide 18: Market Development
Market update MARKET DEVELOPMENT GLOBAL COMMERCIAL VEHICLES PRODUCTION, thousand units China Global excl China WEAK DEMAND IN BOTH COMMERCIAL VEHICLE AND -8.3% PASSENGER CAR MARKETS IN Q4 AND IN FY 2024 871 860 815 855 889 848 845 767 785 742 285 295 275 323 288 304 179 260 271 229 CHINA NORTH AMERI
Slide 19: Q4 2024 vs Q4 2023: KA Versus Market
Market update Q4 2024 VS Q4 2023: KA VERSUS MARKET KA PERFORMED BETTER THAN OVERALL MARKET IN EUROPE AND NORTH AMERICA EUROPE 47% OF KA SALES CHINA NORTH AMERICA 10% OF KA SALES KA*** MARKET 36% OF KA SALES KA*** MARKET KA*** MARKET CV* -10.2% -25.5% CV* -50.5% -1.6% -5.3% -15.3% LV* -31.7% -8.3% CV
Slide 20: Market Forecasts
Market update MARKET FORECASTS COMMERCIAL VEHICLES AND PASSENGER CARS MARKETS FORECASTED TO REMAIN FLAT IN 2025 UNDERLYING MARKET GROWTH PUSHED OUT IN TIME, FORECASTED GROWTH RATE IN 2026 INCREASED EUROPE CHINA NORTH AMERICA 1,432 735 612 573 30.1 30.2 31.9 581 559 538 GLOBAL 17.7 15.5 15.5 17.1 1,1
Slide 21: Financial Update
FINANCIAL UPDATE KONGSBERG AUTOMOTIVE KONGSBERG AUTOMOTIVE // // 21 21
Slide 22: Revenues, EBIT and Free Cash Flow
Financial update COST REDUCTIONS OFFSET LOST CONTRIBUTION FROM WEAKER MARKET DEMAND REVENUES 211.0 212.1 209.3 185.2 181.6 > Q4 revenues down 12.1%1 from Q4 2023 driven by lower demand in Europe, North America and China 4.8 % 3.1 % 0.6 % 0.6 % > Lower volumes and unfavorable mix effects 10.1 6.4 imp
Slide 23: Flow Control Systems Business Area Update
Financial update FLOW CONTROL SYSTEMS BUSINESS AREA UPDATE REVENUES, MEUR Q4 2024 vs. Q4 2023 82.7 79.7 > Revenues: 75.2 73.4 > Lower sales in European commercial vehicle 71.4 market due to weak market > Lower sales of industrial applications in North America > Positive development in North America’
Slide 24: Drive Control Systems Business Area Update
Financial update DRIVE CONTROL SYSTEMS BUSINESS AREA UPDATE REVENUES, MEUR Q4 2024 vs. Q4 2023 101.0 95.6 92.5 > Revenues: 82.3 > Declining revenues in commercial vehicle markets 80.9 in Europe and North America > Significant revenues drop in weak agriculture and construction market in North America
Slide 25: EBIT Bridge (Q4 & FY)
Financial update EBIT BRIDGE (Q4 & FY) SAVINGS IN ADMIN EXPENSES & REDUCTION IN FIXED COSTS, COMPENSATE FOR LOST CONTRIBUTION EBIT (Q4), MEUR 1.1 VOLUME & MIX -10.5 +8.0 -4.8 +3.3 > Lost volume mainly in H2 2024 +25.5 > Driveline wind-down > Unfavorable mix effects in FCS -20.4 EBIT - EBIT - Q4 2023
Slide 26: Net Income Bridge (Q4 & FY)
Financial update NET INCOME BRIDGE (Q4 & FY) EBIT IMPROVEMENT, POSITIVE IMPACT FROM EXCHANGE RATE EFFECTS NET INCOME (Q4), MEUR -0.7 -2.4 +4.9 NET INTERESTS -1.1 -9.0 > Q4 & FY: Interests on Account Receivables Securitization facility in H2 2024, less interest +21.5 -13.1 income CURRENCY GAINS/LOSSE
Slide 27: Free Cash Flow
Financial update FREE CASH FLOW POSITIVE FREE CASH FLOW IN Q4, FULL YEAR IMPROVED VS LAST YEAR, BUT STILL NEGATIVE FREE CASH FLOW 1 , MEUR 12M Trend3 FREE CASH FLOW Q4 2024 FY 2024 Operating activities +13.7 +32.4 +2.5 +4.8 +4.5 +4.2 Investing activities -6.9 -21.4 -4.4 -5.2 Financing activities -6.
Slide 28: Financial Ratios
Financial update FINANCIAL RATIOS Incl. IFRS 16 effect LEVERAGE RATIO, NIBD 1/ ADJUSTED EBITDA, LTM ROCE 2, %, LTM 5.8 1.7 2.5 -0.8 2.1 1.8 1.8 1.7 -3.9 -5.9 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 EQUITY RATIO, % CAPITAL EMPLOYED 3 , MEUR 34.3 34.6 33.7 319.9
Slide 29: Summary & Outlook
SUMMARY & OUTLOOK KONGSBERG AUTOMOTIVE KONGSBERG AUTOMOTIVE // // 29 29
Slide 30: Summary
Summary & Outlook SUMMARY > Financial performance improved, successful cost reductions offset weak market demand > Positive Q4 2024 free cash flow > Exceptionally high business wins in 2024 > KA remains focused on cost reductions, operational efficiency, increasing product portfolio profitability, p
Slide 31: Guidance 2025
Summary & Outlook GUIDANCE 2025 > For 2025, we expect revenues to be relatively unchanged in first half year versus second half of 2024 with a potential upside in second half of the year. > Based on successful implementation of various cost optimization and efficiency initiatives, we expect a positi
Slide 32: On the Agenda for 2025: Q&A
ON THE AGENDA FOR 2025: > Release of Annual Report 2024, March 27 Q&A > Q1 report 2025, May 7 > Annual General Meeting, May 23 > Q2 report 2025, August 12 > Q3 report 2025, November 5 KONGSBERG AUTOMOTIVE KONGSBERG AUTOMOTIVE // // 32 32
Slide 33: Kongsberg Automotive
MOBILITY A. y\N SOLUTIONS “an KONGSBERG FOR THE : Be AUTOMOTIVE FUTURE
Kongsberg Automotive New — Q4 2024 Earnings Presentation on 6ix