Kongsberg Automotive

Earnings Release • Aug 6, 2020

Kongsberg Automotive reports Q2 2020 results

KEY TOPICS

• Revenues declined strongly by MEUR140 (-48 %) YoY to MEUR154, including negative currency translation effects of MEUR3.9. The downturn in Q2 2020 is wholly driven by Corona virus pandemic related shortfalls in sales volume in European and NorthAmerican KA plants:
  • Revenues in Europe and in theAmericas declined by around 56% YoY and 57% respectively.
  • Revenues in China increased by around 25% YoY, attributable to the quick recovery from the Corona virus pandemic effects and KA market share gains in that market.
  • Revenues in all KA global locations ramped up quicker than originally expected during the month of June 2020, reaching a level of almost 75% of June 2019 levels.
• Despite great uncertainty around future customer demand, we were awarded new business totaling MEUR43 on an annualized basis, corresponding to MEUR160 in expected lifetime revenues during Q2 2020.
• Adj. EBITwas proportionate to the reduced revenue levels and amounted to MEUR-33 which was MEUR54 lower than in Q2 2019. There were no significant translational FXimpacts. TheAdj. EBITQ2 2020 figure excludes impairment losses of MEUR83 triggered by the effects the Corona virus pandemic has on the current business outlook.
• The free cash flow was MEUR-14 for the quarter.
• The Capital Increase contributed MEUR63 (private placement).
• We repaid our entire RCF outstanding balance.
• Our liquidity reserve amounted to MEUR126 including the entire available RCF line.
• Our usable liquidity reserve amounted to MEUR112 including only the RCF amount that we can draw before subjecting ourselves to covenant testing.
• Total cash flow for the quarter was MEUR49 including the complete RCF repayment and currency effects.
• The adjusted gearing ratio (NIBD/Adj. EBITDA) deteriorated from 3.0Xin Q2-19 to 6.1Xin Q2 2020, again mainly driven by the effects of the Corona virus pandemic.

The earnings conference call including a review of the presentation can be followed through this link starting at CET09:00:

Link to the Audio:

Webcast: https://globalmeet.webcasts.com/starthere.jsp?ei=1284868&tp_key=6577680375

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KA Investor Relations, corporate.communications@ka-group.com

KongsbergAutomotive provides world class products to the global vehicle industry. Our products enhance the driving experience, making it safer, more comfortable and sustainable. With revenues of approx. EUR1.1 billion and approximately 11.000 employees in 19 countries, KongsbergAutomotive is truly a global supplier. The company has more than 25 production facilities worldwide. The product portfolio includes seat comfort systems, driver and motion control systems, fluid assemblies, and industrial driver interface products developed for global vehicle manufacturers. Find more information at www.kongsbergautomotive.com