Kongsberg Automotive ASA · OSL:KOA
Kongsberg Automotive ASA — Q3 2019 Earnings Presentation
26 slides from Kongsberg Automotive ASA's earnings presentation, Nov 7, 2019
Slide 1: Kongsberg Automotive Third quarter 2019
Kongsberg Automotive Third quarter 2019 - November 7, 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: Highlights Q3 2019
Highlights Q3 2019 Ongoing positive development in challenging market conditions ▪ In a challenging market environment, we again grew our revenues: ▪ YoY revenue growth of 7.8% from MEUR 259 to MEUR 279 including positive FX effects of MEUR 4. Sales ▪ Excluding FX effects, our growth rate was 6% com
Slide 4: Revenues and Adjusted EBIT
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% 280 288 294 288 5.4% 5.1% 4.8% 279 5.2% 5.0% 268 259 267 257 251 4.9% 3.2
Slide 5: EBIT and Net Income
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 14.8 15.0 14.1 13.8 12.7 13.0 11.9 10.5 9.7 8.0 7.7 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 Q4 Q1 Q2 Q3 Q4 -5.0 -7.4 -9.9 -
Slide 6: New Business Wins
New Business Wins
Slide 7: New business wins – KA Group
New business wins – KA Group Solid future 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 71 323
Slide 8: 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 9: Book-to-bill performance
Book-to-bill performance High number of new business wins over the last 2+ years ensure long term growth Book-to-bill ratio Revenues (LTM in MEUR) New business wins LTM (lifetime revenues*) in MEUR 1.71 1.43 1.46 1.48 1.50 1.49 1.48 1.39 1.41 Book-to-bill ratio 1.24 1.23 1,880 1,681 1,697 1,701 1,60
Slide 10: Market Summary
Market Summary
Slide 11: Q3 2019 market summary
Q3 2019 market summary Declining passenger car and truck markets in all major regions Global Passenger Car Production, Units in millions Global Passenger Car Production -2.7% Production Volumes: 25.3 24.4 24.3 24.1 23.9 23.0 22.9 22.5 21.9 22.1 21.3 Europe -0.5% YoY or -22k units North America +2.0%
Slide 12: Segment Highlights
Segment Highlights
Slide 13: Segment financials last five quarters
Segment financials last five quarters Interior Powertrain & Chassis Specialty Products Revenues MEUR 77 77 75 75 119 110 113 116 113 103 66 103 98 90 91 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 2018 2018 2019 2019 2019 2018 2018 2019 2019 2019 Adjusted EBIT* MEUR and per
Slide 14: Interior
Interior Revenues Adj. EBIT The overall YoY increase was driven by The Interior segment consists of two Interior Comfort Systems (ICS) with a business units; Interior Comfort Systems +12.6% growth rate in the mid teens as volumes (ICS) and Light Duty Cables (LDC). In of new programs in Europe and No
Slide 15: Powertrain and Chassis (P&C)
Powertrain and Chassis (P&C) Revenues Adj. EBIT The commercial vehicle business in 4.5% Higher profit contribution from additional +10.3% North America and passenger car 5.1 revenues in North America and China business in China continue to be the and cost improvements as a result of 113 YoY growth d
Slide 16: Specialty Products Segment
Specialty Products Segment Revenues Adj. EBIT Although overall sales were flat, there Overall adj. EBIT levels remained was growth in Off-highway and a relatively stable in the segment with adj. market-driven decline in Couplings. EBIT of around MEUR 12. 13.8% 13.0% +1.4% 12.4 11.9 The slight declin
Slide 17: Financial Update
Norbert Loers Financial Update
Slide 18: Q3 2019 - Revenue development
Q3 2019 - Revenue development Interior and Powertrain & Chassis segments driving revenue growth 280 4.2 MEUR ► Group 9.0 -0.3 Revenues of MEUR 279.2, which is a YoY 276 growth of +7.8%, without FX +6.2% ► Business segments 272 Interior’s positive YoY development was driven by volume growth in ICS bu
Slide 19: Q3 2019 - Adjusted EBIT development
Q3 2019 - Adjusted EBIT development 16 MEUR ► Group Adjusted EBIT MEUR 13.9, MEUR 0.8 higher 2.7 -0.9 than Q3 2018. 15 ► Business Segments + volume increase -0.3 + cost improvements 14 - higher tariffs - unfavorable product mix - higher Mexican labor cost -0.7 - generally higher share of new program
Slide 20: Q3 2019 - Net Profit development
Q3 2019 - Net Profit development 10 ► Group MEUR Net Profit was MEUR 2.3 above Q3 2018 mainly driven by lower restructuring costs. ► Restructuring costs 8 5.0 -1.8 Restructuring costs were reduced by MEUR 6.9 following the completion of the production transfer projects from Germany, the UK, the US a
Slide 21: Free Cash Flow
Free Cash Flow* MEUR ► Operating cash flow MEUR 16.3 Overall NWC increase by MEUR 1.9 30 Cash out related to restructuring activities amounted to MEUR -2.1 for Q3 2019. 23 20 ► Investment cash flow MEUR -16.4 14 Investments mainly to support current and future business growth. 10 8 7 ► Cash flow fro
Slide 22: Q3 2019 - Liquidity development
Q3 2019 - Liquidity development MEUR Cash Unutilized RCF Operating activities Investments Financials & FX 25.4 -1.9 -2.1 -3.9 -1.2 -16.4 75.6 -10.7 64.5 -0.3 35.6 24.5 40.0 40.0 Q2 2019 Adjusted Change in Cash Tax payments Other Net Interest paid, Currency Q3 2019 EBITDA Total NWC restructuring rece
Slide 23: Net financial items - Breakdown
Net financial items - Breakdown MEUR ► Currency effects Net financial items The currency loss of MEUR Other financial items -1.0 consisted of unrealized Currency effects FX losses. Net interest 1.2 1.0 ► Interest Main elements were the -1.2 -2.6 -2.8 IFRS16 interest cost of -5.4 -5.8 -5.8 MEUR -1.2
Slide 24: 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 3.0 2.2 2.3 2.4 13.9 15.3 14.9 13.8 14.0 13.2 2.1 13.9 13.2 1.9 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Equity Ratio (%) Capit
Slide 25: Summary
Summary
Slide 26: Summary & Conclusion
Summary & Conclusion ▪ Global market conditions continue to deteriorate. ▪ Q3 revenue and earnings growth achieved. ▪ Due to our strong new business wins over the past years, we believe we can continue to deliver above-market top line performance in the coming quarters. ▪ We expect Q4 2019 revenues