Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Debt Investor Presentation (September 2019)
25 slides from Kongsberg Automotive Asa's debt investor presentation, September 2019
Slide 1: Kongsberg Automotive Investor Presentation
Kongsberg Automotive Investor Presentation September 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, 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 – 2011 Tyco Elect
Slide 4: Kongsberg Automotive at a glance
Kongsberg Automotive at a glance Overview Selected KPIs ➢ Headquartered in Zurich, Switzerland and listed on the Oslo stock Revenue Adj. EBIT exchange (2017A / 2018A / 2019Q2 LTM) (2017A / 2018A/ 2019Q2 LTM) ➢ 3 segments: Interior, Powertrain & Chassis, Specialty Products ▪ Interior: interior comfor
Slide 5: Kongsberg Automotive history
Kongsberg Automotive history 2016 the major turning point SP Speciality Products ▪ Sale of North American Headrest and Armrest Int. P&C business Step change ▪ Starting from a period of low growth post Teleflex acquisition, Powertrain & Chassis 2018 Int. ▪ Operational HQ moved to Zurich Kongsberg Aut
Slide 6: Kongsberg Automotive benefits from a well diversified customer base
Kongsberg Automotive benefits from a well diversified customer base Contribution of top 10 customers Share of KA’s Total Revenue 11% Top 10 customers 10% ~55% 9% Revenue 2018A: €1,123mm 8% 7% 6% 10,6% 5% 8,6% 4% 3% 6,1% 5,8% 5,2% 2% 4,4% 4,2% 4,1% 3,3% 2,8% 2,5% 1% 2,2% 2,0% 2,0% 0% 1 OEM customers
Slide 7: New business wins - Group
New business wins - Group Booking momentum remains despite softening markets 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 71 323 66 65 288 62 300 60 36 200 40 1
Slide 8: Revenues and Adjusted EBIT
Revenues and Adjusted EBIT Revenue and adj. 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% 280 288 294 288 5.4% 5.1% 4.8% 5.2% 268 267 257 259 4.9% 3.2% 3.0% 251 241 25
Slide 9: EBIT and Net Income
EBIT and Net Income Net Income continues to grow YoY driven by fundamentals and reduction of restructuring expenses EBIT Net Income MEUR MEUR 2016 2017 2018 2019 20.3 19.2 17.9 14.8 15.0 14.1 13.8 12.7 13.0 10.5 9.7 8.0 7.7 6.2 5.7 4.9 4.2 3.3 2.9 1.6 2.1 -0.2 0.2 0.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -5.0 -7
Slide 10: Historical financials overview
Historical financials overview Revenue performance (€mm) Key financials (€mm) P&L Actuals 1200 €mm FY 2016 FY 2017 FY 2018 LTM Q2 2019 1148 1150 1123 Revenue 986 1,057 1,123 1,148 1100 1057 1050 1000 986 % growth (3.0%) 7.2% 6.2% NA 950 900 Adj. EBITDA 73 92 110 116 850 800 750 % margin 7.4% 8.7% 9.
Slide 11: Financial ratios
Financial ratios Adjusted gearing ratio (NIBD/EBITDA, LTM*) Adjusted ROCE* (%, LTM) Incl. IFRS 16 effect Incl. IFRS 16 effect 3.0 3.0 2.2 2.2 2.3 13.9 15.3 14.9 13.8 14.0 13.2 2.1 1.9 13.1 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Equity Ratio** (%) Capital Empl
Slide 12: Bond pricing and summary
Bond pricing and summary Bond price development Bond summary Issuer: Kongsberg Actuation Systems B.V. 103 Issue: Senior secured notes (“the Notes”) Amount: €275mm 100 Maturity: 7 years 101 Expected corporate Ba3 / B+ // Ba3 / BB- // issue ratings: 99 Call protection: Non-callable for 3 years ◼ T + 5
Slide 13: 2019 Outlook
2019 Outlook NS KONGSBERG AUTOMOT Ive VY 13
Slide 14: Passenger Car Unit production estimates are declining
Passenger Car Unit production estimates are declining The main driver is the Chinese market CMD 2018 September 2019 1.9% -4.3% 98.3 95.2 94.2 100 95.2 96.4 90.1 2.6 2.6 2.6 2.6 2.7 3.8 3.3 3.4 2.0 Rest of World 3.3 3.6 3.4 South America 17.1 17.1 17.0 80 17.1 17.1 16.6 North America Units in million
Slide 15: How our business works – margin perspective
How our business works – margin perspective General Process RfQ Award SOP EOP % Margin “New programs” “Mature Programs” Time (Illustrative example) 15
Slide 16: Revenue Projections
Revenue Projections KA Group Revenue– Illustrative example by product status ➢ The product/model cycles in the automotive industry vary from three to ten years, primarily 1.800 depending on the end-market. For KA, the average length of a program is somewhere 1.600 between five to seven years. 2019 1
Slide 17: Market decline leads to an increasing share of “new programs”
Market decline leads to an increasing share of “new programs” CMD 2018 Update Impact on KA Financials 1,357 ▪ Declining markets typically 1,271 affect mature programs rather 1,194 than new programs 1,123 ~25% ▪ Unusual high share of “new (318) ~27% programs” offsets the market (318) driven decline i
Slide 18: Financial overview
Financial overview 2019 Outlook Development 2019 AGM / May 15 Current outlook / Sept 4 2018 CMD Update Update In Mill. Euro 2017 2018 2019 In Mill. Euro 2017 2018 2019 In Mill. Euro 2017 2018 2019 Sales 1.057 1.128 1.271 Sales 1,057 1,123 1,220 Sales 1,057 1,123 1,194 EBIT adj. 50 75 97 EBIT adj. 50
Slide 19: 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: €30mm Investments ▪ Select investments in key product / niche areas based on strict return perf
Slide 20: Key highlights & Conclusion
Kongsberg Automotive – Key highlights & Conclusion ▪ Kongsberg Automotive – truly global mid-sized automotive supplier with diversified customer base ▪ Kongsberg Automotive is a manufacturer and supplier of components, systems and aftermarket products primarily for the automotive (light duty and hea
Slide 21: Backup Slides
Backup Slides NS KONGSBERG AUTOMOTIVE VY 21
Slide 22: Interior Comfort Systems
Interior Segment Interior Revenue 2018A: 25%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 36%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 CMD Capital Markets Day 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
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