Earnings Release • Feb 26, 2021
Earnings Release
Open in ViewerOpens in native device viewer
| Fourth quarter 2020 at glance 3 | |
|---|---|
| Group financials 4 | |
| Segment reporting 7 | |
| Interior7 | |
| Powertrain and Chassis8 | |
| Specialty Products 9 | |
| Condensed consolidated financial statements 10 | |
| Notes to the consolidated financial statements14 | |
| Alternative performance measures (APM) 22 | |
| Responsibility statement25 | |
| Other company information 26 |
KEY FIGURES
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Revenues | 298.5 | 280.8 | 969.3 | 1,160.9 |
| EBITDA | 34.3 | 25.1 | (26.3) | 110.4 |
| in % revenues | 11.5% | 8.9% | -2.7% | 9.5% |
| Impairment losses | 0.0 | 0.0 | (82.6) | 0.0 |
| Adjusted EBIT1 | 22.5 | 15.1 | 10.7 | 70.9 |
| in % revenues | 7.5% | 5.4% | 1.1% | 6.1% |
| Operating profit (loss) / EBIT | 21.7 | 11.0 | (76.2) | 62.4 |
| in % revenues | 7.3% | 3.9% | -7.9% | 5.4% |
| Net Profit / (Loss) | 9.1 | 5.7 | (118.0) | 28.8 |
| NIBD / Adjusted EBITDA (LTM) | 5.4 | 3.1 | 5.4 | 3.1 |
| excluding IFRS 16 | 5.1 | 2.5 | 5.1 | 2.5 |
| Equity ratio | 27.3% | 30.6% | 27.3% | 30.6% |
| excluding IFRS 16 | 30.9% | 34.5% | 30.9% | 34.5% |
1 Adjusted for restructuring costs and impairment losses (see APM section)
Adjusted EBIT MEUR and in % revenues
Operating Cash Flow
SELECTED FINANCIAL INFORMATION – PROFIT AND LOSS
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Revenues | 298.5 | 280.8 | 969.3 | 1,160.9 |
| OPEX | (264.2) | (255.7) | (913.0) | (1,050.4) |
| Impairment losses | 0.0 | 0.0 | (82.7) | 0.0 |
| EBITDA | 34.3 | 25.1 | (26.3) | 110.4 |
| in % revenues | 11.5% | 8.9% | -2.7% | 9.5% |
| Depreciation/Amortization/Write-off of tangible and intangible assets |
(12.6) | (14.1) | (49.9) | (48.0) |
| Operating profit (loss) / EBIT | 21.7 | 11.0 | (76.2) | 62.4 |
| in % revenues | 7.3% | 3.9% | -7.9% | 5.4% |
| Adjusted EBIT1 | 22.5 | 15.1 | 10.7 | 70.9 |
| in % revenues | 7.5% | 5.4% | 1.1% | 6.1% |
| Net financial items | (12.3) | (5.4) | (47.0) | (18.9) |
| Profit / (loss) before taxes | 9.4 | 5.6 | (123.2) | 43.5 |
| Income taxes | (0.3) | 0.1 | 5.2 | (14.8) |
| Net profit / (loss) | 9.1 | 5.7 | (118.0) | 28.8 |
1 See APM section for the reconciliation
Revenues for the Group amounted to MEUR 298.5 in the fourth quarter of 2020, MEUR 17.7 (+6.3%) more than Q4 2019, despite negative currency translation effects of MEUR 14.3. The higher revenue levels are attributable to all operating segments.
In the Powertrain & Chassis segment, which serves the passenger car and commercial vehicle end markets, revenues increased by MEUR 4.1 (+3.7%) year over year, despite negative currency translation effects of MEUR 4.8. On a constant currencies' basis, revenues in the commercial vehicle end market increased by MEUR 9.7 in total, attributable to China (MEUR 2.1) and United States (MEUR 3.0) and in Europe (MEUR 3.6). The revenues in the passenger car end markets declined by MEUR 9.3 in Europe, offset by an increase of MEUR 8.5 in China. Revenues in United States remained at a comparable level.
In the Specialty Products segment, which serves the passenger car, commercial vehicle end markets and general industrial customers, revenues increased by MEUR 2.7 (+3.0%) compared to the same quarter in 2019, despite negative currency translation effects of MEUR 5.0. Excluding negative translation effects, revenues in all regions have shown an upward trend: Europe by MEUR 3.9, America by MEUR 2.4 and Asia by MEUR 1.3.
In the Interior segment, which serves the passenger car end markets, revenues increased by MEUR 10.9 (+14.3%) compared to the fourth quarter of 2019, despite negative currency translation effects of MEUR 4.5. Interior Comfort System significantly contributed to the increase of revenues (MEUR 13.3).
Adjusted EBIT for the Group was MEUR 22.5 in the fourth quarter 2020, which is higher by MEUR 7.4 (+49.3%) than in Q4 2019. This increase is due to strict cost control and improved efficiency, as well as the increased revenues in Asia with higher profit margins.
Including restructuring costs of MEUR 0.8, operating profit in Q4 2020 amounted to MEUR 21.7 , compared to the operating profit of MEUR 11.0 in Q4 2019.
Net financial items came to an expense of MEUR 12.3 in the fourth quarter of 2020, compared to an expense of MEUR 5.4 in the same period in 2019 (see Note 6).
The main driver for the higher financial expenses was the increase of foreign currency losses amounting to MEUR 5.7 compared to the foreign currency gains of MEUR 0.6.
There were no significant changes in the interest expenses compared to the fourth quarter of last year.
Profit before tax amounted to MEUR 9.4 in the fourth quarter of 2020, an improvement of MEUR 3.8 to the same quarter of 2019. Net profit amounted to MEUR 9.1 in Q4 2020, being an increase of MEUR 3.4 compared to the net profit of MEUR 5.7 in Q4 2019. Any tax expense related to the positive result in Q4 2020 was offset by deferred tax income on future deductible differences and losses.
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Cash flow - Operating activities | 37.0 | 25.5 | 74.1 | 51.3 |
| Cash flow - Investing activities | (26.6) | (17.0) | (58.6) | (63.3) |
| Cash flow - Financing activities | (6.8) | (6.6) | 41.6 | (22.9) |
| Currency effects on cash | (7.1) | (1.2) | (14.9) | 0.7 |
| Change in cash | (3.4) | 0.7 | 42.2 | (34.0) |
| Cash as of beginning of period | 70.8 | 24.5 | 25.2 | 59.2 |
| Cash as of end of period | 67.4 | 25.2 | 67.4 | 25.2 |
| Of this, restricted cash | 0.4 | 0.8 | 0.4 | 0.8 |
Cash from operating activities increased by MEUR 11.5 in comparison with the fourth quarter last year. The change in net working capital amounted to MEUR 11.7 in Q4 2020 compared to a change of MEUR 15.6 in Q4 2019.
Cash used by investing activities amounted to MEUR 26.6 in the fourth quarter of 2020. The higher investment activity in Q4 2020 was to catch up reduced investment activity due to the Corona virus pandemic.
Cash flow used by financing activities was MEUR 6.8 in the fourth quarter, compared to MEUR 6.6 in the same quarter last year. The main change compared to Q4 2020 is the Intermediate Subordinated Loan Notes of MEUR 1.4 received from Finacity Corporation with an interest rate of 2.5% and a governmentbacked loan of MEUR 0.8 that was applied for under a COVID-19 relief program.
The repayment of lease liabilities amounted to MEUR 3.1 in Q4 2020.
Interest payments in the fourth quarter of 2020 amounted to MEUR 1.8 related solely to leases.
Cash decreased by MEUR 3.4 during the fourth quarter, resulting in a cash position of MEUR 67.4 at the end of the quarter, compared to the balance of MEUR 70.8 at the end of Q3 2020.
The liquidity reserve was MEUR 197.0 (excluding the restricted cash of MEUR 0.4) at the end of the fourth quarter, compared to MEUR 64.4 at year-end 2019. The unutilized RCF as of December 31, 2020 amounted to MEUR 70.0. Moreover, the Company has an unutilized Securitization facility of MEUR 60.0 as of the end of Q4 2020.
SELECTED FINANCIAL INFORMATION – FINANCIAL POSITION
| (MEUR) | 31.12.20 | 31.12.19 |
|---|---|---|
| Non-current assets | 456.1 | 531.5 |
| Cash and cash equivalents | 67.4 | 25.2 |
| Other current assets | 374.5 | 370.2 |
| Total assets | 898.0 | 927.0 |
| Equity | 245.5 | 282.9 |
| Interest-bearing liabilities | 376.9 | 386.5 |
| Other liabilities | 275.6 | 257.5 |
| Total equity and liabilities | 898.0 | 927.0 |
| NIBD | 309.5 | 361.3 |
| Equity ratio | 27.3% | 30.6% |
Total assets were MEUR 898.0 at the end of the fourth quarter, a decrease of MEUR 29.0 from year-end 2019. The decrease in value of total assets as of December 31, 2020 is mainly driven by the impairment losses of MEUR 82.7 booked in Q2 2020. Total current assets increased mainly due to the increase of accounts receivables by MEUR 21.1 reflecting the high sales level in Q4 2020 and cash and cash equivalents changed by MEUR 42.2.
Equity as of December 31, 2020 decreased by MEUR 37.4 (-13.2%) to MEUR 245.5 in comparison with December 31, 2019.
During the current year, there were movements in equity as follows:
During the fourth quarter of 2020 the following movements have contributed to the change of the equity as of December 31, 2020:
Total comprehensive income for the quarter of MEUR 12.3.
The equity ratio decreased from 30.6% in 2019 to 27.3% by 3.3 as at December 31, 2020.
Total interest-bearing liabilities amounted to MEUR 376.9 comprising IFRS 16 lease interest-bearing liabilities of MEUR 103.4 and the issued bond of MEUR 275.0, netted with the capitalized fees of MEUR 4.9. In addition, a loan at MEUR 1.4 in relation to the Accounts Receivables Securitization program and a government backed loan of MEUR 0.8 was drawn.
As at December 30, 2020, long-term interest-bearing debt amounted to MEUR 363.1.
At the end of the fourth quarter 2020, net interest-bearing debt amounted to MEUR 309.5, a decrease of MEUR 51.9 compared to year-end 2019, mainly driven by the increase of cash balances as of December 31, 2020.
Interior is a global leader in the development, design and manufacture of seat comfort systems and mechanical and electro-mechanical light-duty motion controls to Tier 1 and OEM customers. The product range includes seat adjuster cables and other cabling systems, lumbar support and side bolsters, seat heating, ventilation and massage systems and head restraints.
Interior addresses the passenger car market, with particularly strong positions on premium car platforms in Europe and North America. The product penetration for products such as seat heating, seat ventilation and massage systems are especially high in medium to higher end cars, while headrests and light duty cables are found in all ranges of cars. Customers include all major European and North American car and seat manufacturers and most premium OEMs such as Adient, Magna, Faurecia, Lear, Jaguar, Land Rover, Audi, Volvo Cars, Daimler, BMW and Tesla.
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Revenues | 87.4 | 76.5 | 272.5 | 304.0 |
| Adjusted EBITDA | 8.4 | 7.4 | 8.0 | 23.8 |
| in % revenues | 9.6% | 9.7% | 2.9% | 7.8% |
| Adjusted EBIT | 3.1 | 3.7 | (8.7) | 10.3 |
| in % revenues | 3.6% | 4.9% | -3.2% | 3.4% |
| Restructuring | (0.2) | (0.5) | (0.5) | (0.5) |
| Impairment losses | 0.0 | 0.0 | (52.2) | 0.0 |
| Operating profit (loss) / EBIT | 2.9 | 3.2 | (61.4) | 9.8 |
| in % revenues | 3.3% | 4.2% | -22.5% | 3.2% |
| Investments | (10.1) | (7.9) | (27.9) | (25.3) |
| Capital employed1 | 166.6 | 222.8 | 166.6 | 222.8 |
1 Includes PP&E, intangible assets, inventories, trade receivables and trade payables
Revenues of MEUR 87.4 in Q4 2020 significantly exceeded the revenue level in Q4 2019 by MEUR 10.9 (+14.3%), despite negative currency translation effects of MEUR 4.5 Interior Comfort System revenues increased by MEUR 13.3 compared to Q4 2019 on constant currency basis. This increase was supported by all regions, especially by China, where revenues amounted to MEUR 12.5, MEUR 6.1 (+96%) more than in Q4 2019. Revenues in Light Duty Cables has slightly exceeded revenues in Q4 2019 by MEUR 1.0.
Adjusted EBIT was MEUR 3.1 in the fourth quarter, a decrease of MEUR 0.6 compared to the adjusted EBIT in Q4 last year. The positive effects of operational improvements and strict cost controls were offset by one-time costs and supply chain stress.
The global supply crisis for electronic components already increased Interior's expenses by approximately MEUR 0.5 in Q4.
New business wins in Q4 2020 has hit all-time highs (since 2016) in lifetime revenue. Business wins amounted to MEUR 326.9 lifetime revenues (MEUR 41.3 in annualized revenue) in the fourth quarter 2020.
Within the quarter, Interior was awarded two large contracts: one to supply seat support systems to a major European car maker and one to supply seat support systems to a major US car maker with start of production in Q4 2022 and Q3 2021. The programs total MEUR 17.0 and MEUR 11.6 in expected annualized revenues and MEUR 153.3 and MEUR 80.9 in expected lifetime revenues.
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Powertrain & Chassis is a global Tier 1 supplier of driver control and driveline products into the passenger and commercial vehicle automotive markets. The portfolio includes custom-engineered cable controls and complete shift systems, clutch actuation systems, vehicle dynamics, shift cables and shift towers for transmissions.
Powertrain & Chassis serves the passenger car and the commercial vehicle markets, with particularly strong positions in Europe and the Americas. With a global footprint, Powertrain & Chassis can support customers worldwide. Key customers include Ford, General Motors, FCA, Volvo, Scania, DAF, John Deere, PSA, Renault-Nissan and Geely.
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Revenues | 117.3 | 113.2 | 372.9 | 461.1 |
| Adjusted EBITDA | 10.1 | 10.8 | 19.2 | 38.1 |
| in % revenues | 8.6% | 9.5% | 5.2% | 8.3% |
| Adjusted EBIT | 5.9 | 5.4 | (0.6) | 19.0 |
| in % revenues | 5.0% | 4.7% | -0.2% | 4.1% |
| Restructuring | (1.6) | (0.2) | (1.8) | (0.2) |
| Impairment losses | 0.0 | 0.0 | (30.4) | 0.0 |
| Operating profit (loss) / EBIT | 4.2 | 5.2 | (32.8) | 18.7 |
| in % revenues | 3.6% | 4.6% | -8.8% | 4.1% |
| Investments | (9.3) | (3.8) | (18.3) | (22.8) |
| Capital employed1 | 191.1 | 221.1 | 191.1 | 221.1 |
1 Includes PP&E, intangible assets, inventories, trade receivables and trade payables
Revenues in Powertrain & Chassis increased by MEUR 4.1 (+3.7%) to MEUR 117.3 in the fourth quarter 2020 compared to the same quarter in 2019, despite negative currency translation effects of MEUR 4.8. The increase was mainly driven by the significant expansion in China where revenues increased by MEUR 10.4 compared to Q4 2019. On the other hand, it was partially offset by the decrease in Europe where revenues in Q4 2020 decreased by MEUR 5.7.
Adjusted EBIT was MEUR 5.9 in the fourth quarter 2020, an increase of MEUR 0.5 compared to the adjusted EBIT in Q4 last year. Higher profitability is driven by efficient control of variable and fixed costs in European and American plants. However, this was partially offset by a warranty charge of around MEUR 5.0.
Business wins amounted to MEUR 52.6 lifetime revenue (MEUR 18.6 in annualized revenue) in the fourth quarter of 2020.
New Business Wins included a gear shift system project to an American car maker with expected annualized revenues of MEUR 4.3 and MEUR 25.7 in expected lifetime revenues.
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Specialty Products designs and manufactures fluid handling systems for both the automotive and commercial vehicle markets, couplings systems for compressed-air circuits in heavyduty vehicles, operator control systems for power sports construction, agriculture, outdoor power equipment and power electronics-based products.
Key customers include Volvo Trucks/Group, Scania, Navistar, Paccar/DAF, Ford, Jaguar Land Rover, Club Car, John Deere, CAT, Husqvarna, CNH and BRP and several Tier 1 customers in addition to an industrial customer base.
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Revenues | 93.8 | 91.1 | 324.0 | 395.7 |
| Adjusted EBITDA | 19.2 | 14.7 | 53.9 | 70.5 |
| in % revenues | 20.5% | 16.1% | 16.6% | 17.8% |
| Adjusted EBIT | 16.3 | 11.4 | 42.4 | 58.8 |
| in % revenues | 17.4% | 12.5% | 13.1% | 14.9% |
| Restructuring | 1.0 | (2.2) | 0.7 | (2.1) |
| Impairment losses | 0.0 | 0.0 | 0.0 | 0.0 |
| Operating profit / EBIT | 17.3 | 9.2 | 43.1 | 56.8 |
| in % revenues | 18.4% | 10.1% | 13.3% | 14.3% |
| Investments | (7.2) | (5.9) | (14.2) | (16.7) |
| Capital employed1 | 211.2 | 228.8 | 211.2 | 228.8 |
1 Includes PP&E, intangible assets, inventories, trade receivables and trade payables
Revenues in Specialty Products increased by MEUR 2.7 (+3.0%) to MEUR 93.8 compared to the fourth quarter of 2019, despite negative currency translation effects of MEUR 5.0. The revenue growth in this segment was driven by the couplings systems in the heavy-duty vehicles market and fluid handling systems, mainly in European and US plants.
Adjusted EBIT was MEUR 16.3 in the fourth quarter, an increase of MEUR 4.9 compared to last year. Strong productivity in the growing Chinese market, favorable foreign exchange rate effects and positive development of brass and resin prices for Couplings products led to a more than proportional increase of adjusted EBIT.
During the fourth quarter 2020, total business wins amounted to MEUR 91.9 in lifetime revenue (MEUR 26.8 in annualized revenue).
Within the quarter, Couplings was awarded a contract with a major European Truck OEM. This program totals MEUR 6.1 in expected annualized revenues and MEUR 43.0 in expected lifetime revenues.
Likewise, Off-Highway secured three contracts with major construction OEMs. These programs total MEUR 5.4 in expected annualized revenues and MEUR 16.2 in expected lifetime revenues.
Revenues
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Adjusted EBIT MEUR and in % revenues
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Revenues | 298.5 | 280.8 | 969.3 | 1,160.9 |
| OPEX | (264.2) | (255.7) | (913.0) | (1,050.4) |
| Impairment losses | 0.0 | 0.0 | (82.7) | 0.0 |
| EBITDA | 34.3 | 25.1 | (26.3) | 110.4 |
| in % revenues | 11.5% | 8.9% | -2.7% | 9.5% |
| Depreciation/Amortization/Write-off of tangible and intangible assets |
(12.6) | (14.1) | (49.9) | (48.0) |
| Operating profit (loss) / EBIT | 21.7 | 11.0 | (76.2) | 62.4 |
| in % revenues | 7.3% | 3.9% | -7.9% | 5.4% |
| Adjusted EBIT1 | 22.5 | 15.1 | 10.7 | 70.9 |
| in % revenues | 7.5% | 5.4% | 1.1% | 6.1% |
| Net financial items | (12.3) | (5.4) | (47.0) | (18.9) |
| Profit / (loss) before taxes | 9.4 | 5.6 | (123.2) | 43.5 |
| Income taxes | (0.3) | 0.1 | 5.2 | (14.8) |
| Net profit / (loss) | 9.1 | 5.7 | (118.0) | 28.8 |
| Other comprehensive income (items that may be reclassified to profit or loss in subsequent periods): |
- | - | - | - |
| Translation differences on foreign operations | (27.8) | (4.3) | (2.8) | (0.8) |
| Tax on translation differences | (2.5) | 1.9 | 1.4 | (0.6) |
| Other comprehensive income (items that will not be reclassified to profit or loss in subsequent periods): |
||||
| Translation differences on non-foreign operations | 33.6 | 1.6 | (9.4) | 3.7 |
| Remeasurement of net pension benefit obligation |
(0.1) | (3.3) | (0.1) | (3.3) |
| Tax on net pension benefit obligation remeasurement |
0.0 | 0.2 | 0.0 | 0.2 |
| Other comprehensive income | 3.2 | (3.8) | (11.0) | (0.8) |
| Total comprehensive income | 12.3 | 1.9 | (129.0) | 28.0 |
| Net profit attributable to: | ||||
| Equity holders (parent company) | 9.0 | 5.6 | (118.3) | 28.6 |
| Non-controlling interests | 0.1 | 0.1 | 0.4 | 0.2 |
| Total | 9.1 | 5.7 | (118.0) | 28.9 |
| Total comprehensive income attributable to: | ||||
| Equity holders (parent company) | 12.2 | 1.8 | (129.3) | 27.8 |
| Non-controlling interests | 0.1 | 0.1 | 0.3 | 0.2 |
| Total2 | 12.3 | 1.9 | (129.0) | 28.0 |
| Earnings per share (EUR): | ||||
| Basic earnings per share | 0.00 | 0.01 | (0.02) | 0.06 |
| Diluted earnings per share | 0.00 | 0.01 | (0.02) | 0.06 |
1 Adjusted for restructuring costs, see APM section for the reconciliation
STATEMENT OF FINANCIAL POSITION
| (MEUR) | 31.12.20 | 31.12.19 |
|---|---|---|
| Intangible assets | 93.2 | 160.3 |
| Property, plant and equipment | 228.8 | 232.1 |
| Right-of-use assets | 94.3 | 103.8 |
| Deferred tax assets | 28.7 | 19.9 |
| Other non-current assets | 11.1 | 15.3 |
| Non-current assets | 456.1 | 531.5 |
| Inventories | 88.9 | 102.9 |
| Accounts receivable | 237.9 | 216.8 |
| Other short-term receivables | 47.7 | 50.6 |
| Financial instruments | 0.0 | 0.0 |
| Cash and cash equivalents | 67.4 | 25.2 |
| Current assets | 441.9 | 395.4 |
| Total assets | 898.0 | 927.0 |
| Share capital1 | 100.5 | 22.8 |
| Share premium reserve | 208.1 | 207.6 |
| Other equity | (67.2) | 48.8 |
| Non-controlling interests3 | 4.1 | 3.8 |
| Total equity | 245.5 | 282.9 |
| Long-term interest-bearing liabilities | 363.1 | 362.7 |
| Deferred tax liabilities | 14.9 | 21.8 |
| Other long-term liabilities | 21.3 | 21.6 |
| Non-current liabilities | 399.3 | 406.1 |
| Short-term interest-bearing liabilities | 13.8 | 23.8 |
| Accounts payable | 137.8 | 130.5 |
| Other short-term liabilities | 101.6 | 83.5 |
| Current liabilities | 253.2 | 237.9 |
| Total liabilities | 652.5 | 644.0 |
| Total equity and liabilities | 898.0 | 927.0 |
1 Following the successfully completed Private Placement in Q2 2020 and Subsequent Offering in Q3 2020, the par value of the shares was decreased from NOK 0.50 to NOK 0.10
STATEMENT OF CHANGE IN EQUITY
| (MEUR) | 31.12.20 | 31.12.19 |
|---|---|---|
| Equity as of start of period | 282.9 | 253.5 |
| Net profit / (loss) for the period | (118.0) | 28.8 |
| Translation differences | (12.2) | 2.9 |
| Tax on translation differences | 1.4 | (0.6) |
| Remeasurement of the net pension benefit obligation | (0.1) | (3.3) |
| Tax on remeasurement of the net pension benefit obligation | 0.0 | 0.2 |
| Total comprehensive income | (129.0) | 28.0 |
| Stock based compensation | 2.1 | 1.4 |
| Increase in equity | 90.7 | 0.0 |
| Purchase of treasury shares | (1.3) | 0.0 |
| Equity as of end of period | 245.5 | 282.9 |
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Operating activities | ||||
| Profit / (loss) before taxes | 9.4 | 5.7 | (123.2) | 43.5 |
| Depreciation & Write-off of tangible assets | 11.6 | 12.4 | 43.7 | 42.9 |
| Amortization & Write-off of intangible assets | 1.0 | 1.6 | 6.2 | 5.1 |
| Impairment losses | 0.0 | 0.0 | 82.7 | 0.0 |
| Interest income | (0.0) | (0.1) | (0.2) | (0.6) |
| Interest and other financial expenses1 | 6.6 | 6.0 | 24.2 | 22.5 |
| Taxes paid | (7.0) | (5.1) | (11.9) | (14.4) |
| (Gain) / loss on sale of non-current assets | (0.0) | 0.1 | (0.3) | (0.3) |
| Changes in receivables | (16.1) | 13.4 | (21.1) | (6.0) |
| Changes in inventory | (5.5) | 10.2 | 14.0 | 17.6 |
| Changes in payables | 33.3 | (8.0) | 7.3 | (29.1) |
| Currency (gain) / loss | 5.7 | (0.6) | 23.0 | (3.0) |
| Difference between pension funding contributions paid/pensions paid and the net pension cost |
(0.9) | 1.1 | (1.0) | 0.9 |
| Changes in other items2 | (1.2) | (11.4) | 30.7 | (27.7) |
| Cash flow - Operating activities | 37.0 | 25.5 | 74.1 | 51.3 |
| Investing activities | ||||
| Investments1 | (26.7) | (17.3) | (60.6) | (65.0) |
| Sale of fixed assets | 0.0 | 0.2 | 1.8 | 1.2 |
| Interest received | 0.0 | 0.1 | 0.2 | 0.6 |
| Cash flow - Investing activities | (26.6) | (17.0) | (58.6) | (63.3) |
| Financing activities | ||||
| Proceeds from increases in equity | (0.6) | 0.0 | 89.7 | (0.0) |
| Purchase of treasury shares | (0.9) | 0.0 | (1.3) | 0.0 |
| Net draw down of debt | 0.7 | (0.0) | (9.3) | 10.3 |
| Interest paid and other financial items | (1.8) | (2.4) | (24.1) | (21.3) |
| Repayment of lease liabilities | (4.3) | (4.1) | (13.5) | (11.9) |
| Cash flow - Financing activities | (6.8) | (6.6) | 41.6 | (22.9) |
| Currency effects on cash | (7.1) | (1.2) | (14.9) | 0.7 |
| Change in cash | (3.4) | 0.7 | 42.2 | (34.0) |
| Cash as of beginning of period | 70.8 | 24.5 | 25.2 | 59.2 |
| Cash as of end of period | 67.4 | 25.2 | 67.4 | 25.2 |
| Of this, restricted cash | 0.4 | 0.8 | 0.4 | 0.8 |
1 Includes Other financial items and the repayment of lease liabilities – See Note 6
2 Includes changes in accruals, provisions, contract assets and contract liabilities, other current receivables like receivables from public duties, customer developments and prepaid expense, and other non-current assets.
NOTE 1 – DISCLOSURES
Kongsberg Automotive ASA and its subsidiaries develop, manufacture and sell products to the automotive and commercial vehicle industry globally. Kongsberg Automotive ASA is a limited liability company, which is listed on the Oslo Stock Exchange. The consolidated interim financial statements are not audited.
This condensed consolidated interim financial information, for the twelve months ended December 31, 2020, has been prepared in accordance with IAS 34 "Interim financial reporting". The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year-ended December 31, 2019, which have been prepared in accordance with IFRS.
The accounting policies are consistent with those of the annual financial statements for the year-ended December 31, 2020, as described in those annual financial statements. Taxes on income in the interim periods are accrued using the estimated effective tax rate.
The assessment of risks and opportunities for the financial year is subject to a high level of uncertainty and is continuously monitored, evaluated and, if applicable, taken into account in planning during the year. Our activities are exposed to different types of risk.
The single most important risk that Kongsberg Automotive is exposed to is the development of demand in the end markets for light duty and commercial vehicles worldwide. Some of the most important additional risk factors are foreign-exchange rates, raw material prices, credit risks, and an increasing tariffs risk. As we operate in many countries, we are vulnerable to currency risk. The most significant currency exposure for Kongsberg Automotive is associated with USD exchange rate. The greatest raw material exposures are for copper, zinc, aluminum and steel. As most of our revenues are earned from automotive OEMs and automotive Tier 1 and Tier 2 customers, the financial health of these automotive companies is critical to our credit risk.
All concerned risk factors that Kongsberg Automotive must face in its normal business operations are additionally impacted by Covid-19 since the World Health Organization declared Covid-19 a global health emergency on 30 January 2020. Any assessment of risks and uncertainties is made with an assumption that economic conditions in KA's most important markets normalize
and that there will be no further difficulties as a result of the Covid-19 pandemic. However, the development of worldwide demand for certain KA products continued to be affected by the Covid-19 pandemic crisis causing disruption to KA's operations. An adverse development of the Covid-19 pandemic crisis, especially in the event of a massive second wave of infection, could lead to repeated far-reaching lockdown measures that would result in a deeper slump for the global economy than originally anticipated. Such lockdown measures would affect KA's development of sales volumes but could also have a significant negative impact on production and supply chains with KA's major suppliers.
In response to the unprecedented situation in which KA has found itself, KA successfully completed a Private Placement capital increase of in aggregate of NOK 700,000,000 (MEUR 63.0) and renegotiated the Company's RCF terms (increase of the credit facility by MEUR 20.0) in Q2 2020. Furthermore, KA has completed the subsequent offering with gross proceeds of NOK 300,000,000 (MEUR 27.3) in Q3 2020. This ensures the Company's ability to continue as a going concern and maintain the value of its assets.
Moreover, the Company entered into an account receivables securitization program in Q3 2020 where trade receivables held by the Company's subsidiaries in the US, Canada, Poland and Slovakia (with the option for French subsidiaries' receivables to be added in the future) will be sold to Kongsberg Automotive Finance B.V., a special purpose entity (SPE) domiciled and incorporated in the Netherlands. The agreement shall provide Kongsberg Automotive Group with a committed MEUR 60.0 facility with a three-year tenure. In determining whether to consolidate the SPE, the Company has evaluated whether it has control over the SPE, whether it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. As a conclusion, Company is considered to have control over the SPE as it is exposed to variable returns and has the ability to affect those returns through its power over the investee.
Based on that, KA is consolidating the SPE.
The Group quarterly results are to some extent influenced by seasonality. The seasonality is mainly driven by the vacation period in the third quarter and December each year having lower sales. Also, year-over-year seasonality differences may occur as a result of varying number of working days in each quarter.
NOTE 2 – SEGMENT REPORTING (FOURTH QUARTER 2020)
| Q4 2020 | Powertrain | Speciality | Total | ||
|---|---|---|---|---|---|
| (MEUR) | Interior | & Chassis | Products | Other1 | Group |
| Revenues2 | 87.4 | 117.3 | 93.8 | 0.0 | 298.5 |
| Adjusted EBITDA | 8.4 | 10.1 | 19.2 | (2.6) | 35.1 |
| Depreciation & Write-off of tangible assets3 | (5.2) | (3.5) | (2.8) | (0.2) | (11.6) |
| Amortization & Write-off of intangible assets3 | (0.1) | (0.7) | (0.2) | (0.1) | (1.0) |
| Adjusted EBIT | 3.1 | 5.9 | 16.3 | (2.8) | 22.5 |
| - | - | - | - | ||
| Impairment losses, thereof: | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| - allocated to Goodwill | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| - allocated to assets other than Goodwill | 0.0 | 0.0 | 0.0 | (0.0) | (0.0) |
| Timing of revenue recognition | |||||
| Ownership transferred at a point in time | 87.4 | 117.3 | 93.8 | 0.0 | 298.5 |
| Assets and liabilities | |||||
| Goodwill | 3.9 | 16.2 | 65.3 | 0.0 | 85.4 |
| Other intangible assets | 0.6 | 6.2 | 0.8 | 0.3 | 7.8 |
| Property, plant and equipment | 100.4 | 66.5 | 60.9 | 1.0 | 228.8 |
| Right-of-use assets | 32.7 | 26.7 | 24.2 | 10.8 | 94.3 |
| Inventories | 21.7 | 29.5 | 37.7 | 0.0 | 88.9 |
| Trade receivables | 36.0 | 101.3 | 47.6 | 53.0 | 237.9 |
| Other assets | 12.9 | 6.2 | 5.2 | 0.0 | 24.3 |
| Segment assets | 208.1 | 252.5 | 241.8 | 65.1 | 767.5 |
| Unallocated assets | 130.5 | 130.5 | |||
| Total assets | 208.1 | 252.5 | 241.8 | 195.6 | 898.0 |
| Trade payables | 39.7 | 55.9 | 28.5 | 13.6 | 137.8 |
| Non-current lease interest-bearing liabilities | 29.0 | 27.4 | 23.5 | 9.8 | 89.6 |
| Current lease interest-bearing liabilities | 4.7 | 5.4 | 2.1 | 1.7 | 13.8 |
| Segment liabilities | 73.4 | 88.7 | 54.1 | 25.1 | 241.2 |
| Unallocated liabilities | 411.3 | 411.3 | |||
| Total liabilities | 73.4 | 88.7 | 54.1 | 436.3 | 652.5 |
| Total equity | 245.5 | 245.5 | |||
| Total equity and liabilities | 73.4 | 88.7 | 54.1 | 681.9 | 898.0 |
| Capital expenditure | (10.1) | (9.3) | (7.2) | 0.0 | (26.7) |
1 The column Other includes corporate costs, transactions and balance sheet items related to tax, pension and financing. Trade receivables include the In-House Bank balances.
2 For segment reporting purposes the revenues are only external revenues, the related expenses are adjusted accordingly. The adjusted EBIT is thus excluding IC profit.
3 Excluding restructuring costs.
NOTE 2 – SEGMENT REPORTING (FOURTH QUARTER 2019)
| Q4 2019 | Powertrain | Speciality | Total | ||
|---|---|---|---|---|---|
| (MEUR) | Interior | & Chassis | Products | Other1 | Group |
| Revenues2 | 76.5 | 113.2 | 91.1 | 0.0 | 280.8 |
| Adjusted EBITDA | 7.4 | 10.8 | 14.7 | (4.8) | 28.1 |
| Depreciation3 | (3.5) | (4.5) | (2.9) | (0.5) | (11.5) |
| Amortization3 | (0.2) | (0.9) | (0.3) | (0.1) | (1.5) |
| Adjusted EBIT | 3.7 | 5.4 | 11.4 | (5.4) | 15.1 |
| Timing of revenue recognition | - | - | - | - | |
| Ownership transferred at a point in time | 76.5 | 113.2 | 91.1 | 0.0 | 280.8 |
| Assets and liabilities | |||||
| Goodwill | 57.6 | 22.9 | 68.6 | 0.0 | 149.1 |
| Other intangible assets | 0.5 | 8.9 | 1.1 | 0.6 | 11.2 |
| Property, plant and equipment | 90.4 | 79.9 | 60.6 | 1.3 | 232.1 |
| Right-of-use assets | 26.6 | 35.6 | 27.9 | 13.7 | 103.8 |
| Inventories | 19.2 | 38.4 | 46.6 | (1.3) | 102.9 |
| Trade receivables | 55.5 | 80.6 | 65.3 | 15.4 | 216.8 |
| Other assets | 13.0 | 9.8 | 3.7 | 1.8 | 28.3 |
| Segment assets | 262.8 | 276.1 | 273.7 | 31.5 | 844.2 |
| Unallocated assets | 82.8 | 82.8 | |||
| Total assets | 262.8 | 276.1 | 273.7 | 114.3 | 927.0 |
| Trade payables | 36.8 | 48.9 | 42.5 | 2.5 | 130.7 |
| Non-current lease interest-bearing liabilities | 23.1 | 29.8 | 27.2 | 12.1 | 92.2 |
| Current lease interest-bearing liabilities | 3.3 | 6.1 | 2.4 | 2.0 | 13.8 |
| Segment liabilities | 63.2 | 84.8 | 72.1 | 16.7 | 236.7 |
| Unallocated liabilities | 407.3 | 407.3 | |||
| Total liabilities | 63.2 | 84.8 | 72.1 | 424.0 | 644.0 |
| Total equity | 282.9 | 282.9 | |||
| Total equity and liabilities | 63.2 | 84.8 | 72.1 | 707.0 | 927.0 |
| Capital expenditure | (7.9) | (3.8) | (5.9) | (0.1) | (17.3) |
1 The column Other includes corporate costs, transactions and balance sheet items related to tax, pension, and financing.
2 For segment reporting purposes the revenues are only external revenues, the related expenses are adjusted accordingly. The adjusted EBIT is thus excluding IC profit.
3 Excluding restructuring costs.
NOTE 3 – SALES AND NON-CURRENT ASSETS BY GEOGRAPHICAL LOCATION
| (MEUR) | 2020 | % | 2019 | % |
|---|---|---|---|---|
| Europe - Sales | 418.8 | 43.2% | 551.8 | 47.5% |
| Northern America - Sales | 347.9 | 35.9% | 425.5 | 36.7% |
| Southern America - Sales | 14.7 | 1.5% | 27.8 | 2.4% |
| Asia - Sales | 183.4 | 18.9% | 150.3 | 12.9% |
| Other - Sales | 4.5 | 0.5% | 5.4 | 0.5% |
| Total operating revenues | 969.3 | 1,160.9 |
| (MEUR) | 31.12.20 | % | 31.12.19 | % |
|---|---|---|---|---|
| Europe | 250.1 | 60.1% | 303.8 | 61.2% |
| Northern America | 115.1 | 27.6% | 150.9 | 30.4% |
| Southern America | 2.4 | 0.6% | 3.7 | 0.7% |
| Asia | 48.7 | 11.7% | 37.8 | 7.6% |
| Total Intangible assets, PP&E and RoU | 416.3 | 496.3 |
The outbreak of the COVID-19 pandemic at the start of the year had a significant impact on the Company's profitability and long-term viability. As a result of the COVID-19 pandemic, in Q2 2020 the Group's Management performed an impairment test in accordance with the requirements of IAS 36 for cash generating units (CGUs) that exhibit indicators of impairment.
The Group used the cash-generating unit's value-in-use to determine the recoverable amount. The projected cash flows were updated to reflect the decreased demand for products and services which was regarded as a triggering event to perform an impairment test in Q2 2020. Based on the market data inputs (LMC and IHS reports) available in Q2 2020, the market, and as such the group's, top line was expected to reach pre COVID-19 levels in 2023. However, due to the fact that the top line for some CGUs has already reached its pre-COVID-19 level in Q4 2020, the outlook for 2022-2023 has been accordingly updated and present a much more optimistic view than the one used in Q2 2020.
The business units Interior Comfort Systems, Light Duty Cables, Driveline, On-highway, Couplings, Fluid Transfer Systems and Off-highway were identified as the respective CGUs.
The model was based on a three-year projection of discounted cash flows plus a terminal value (calculated using Gordon's growth model with the perpetual growth of 2%). The net discounted cash flows were calculated before tax.
The projected cash flows were derived from the business plans set up by the management of the business units and reviewed and finally approved by the top management in the course of the budget and strategic planning process covering the period until 2023. The business plans were based on the Group's strategic three-year plan (STP), adjusted for relevant recent changes in internal short-term forecasts and market data. Adjustments were made to exclude significant cash flows related to future restructuring, investments, or enhancements. Assumptions on labor inflation, ranging from 2% to 7% depending on the region, as well as on raw material price development increasing by 3%, were provided centrally. The input data on developments of the relevant markets were taken from wellknown external sources, such as LMC Automotive, IHS and customers, in addition to all relevant internal information such as change in orders, customer portfolio, fitment rate for products, geographical development, market shares, etc.
The required rate of return was calculated using the WACC method. The input data of the WACC was chosen by an individual assessment of each parameter. Information from representative sources, peer groups was used to determine the best estimate. The WACC was calculated to be 9.4% pre-tax. The same WACC was used for all CGUs, the reason being that the long-term risk profiles of the CGUs are not considered to be significantly different. The key parameters were set to reflect the underlying long-term period of the assets and time horizon of the forecast period of the business cases. The following parameters were applied:
The discount rate has been adjusted to reflect the current market assessment of the risks specific to the Group's business activity and was estimated based on the weighted average cost of capital for the Group. Further changes to the discount rate may be necessary in the future to reflect changing risks for the industry and changes to the weighted average cost of capital.
The value in use depends on the free cash flow and discount rate. The cash flow will fluctuate in relation to changes in price, currency, and volume. Business awards, success of the car model, product fitment rates, government regulations, and economic conditions, in turn influence the volume.
The value-in-use is significantly higher than the carrying value. The sensitivity analysis indicates a negative headroom only if discount rate increased by 4 percentage points and discounted cash flow was reduced by minimum 40%. Hence, no reasonable change in any of the key assumptions would cause the unit's recoverable amount to be lower than the carrying value.
The value-in-use is significantly higher than the carrying value. No reasonable change in any of the key assumptions would cause the recoverable amount to be lower than the carrying value.
The value-in-use is considerably higher than the carrying value. No reasonable change in any of the key assumptions would cause the recoverable amount to be lower than the carrying value.
No reasonable change in any of the key assumptions would cause the recoverable amount to be lower than the carrying value.
NOTE 4 –IMPAIRMENT LOSSES (CONTINUED)
| (MEUR) | Driveline | Light Duty Cables |
Interior Comfort Systems |
Total |
|---|---|---|---|---|
| - Goodwill | ||||
| Book value as at 01.01.2020 | 6.6 | 34.0 | 23.6 | 64.2 |
| Impairment | (6.5) | (33.0) | (19.2) | (58.7) |
| Additions, Disposals & Translation differences |
(0.1) | (0.4) | (1.1) | (1.6) |
| Book value as at 31.12.2020 | 0.0 | 0.6 | 3.3 | 3.9 |
| - Other intangible assets | ||||
| Book value as at 01.01.2020 | 7.8 | 0.1 | 0.5 | 8.3 |
| Impairment | (1.6) | 0.0 | 0.0 | (1.6) |
| Amortization | (1.8) | (0.0) | (0.2) | (2.0) |
| Additions, Disposals & Translation differences |
(2.6) | (0.0) | 0.3 | (2.3) |
| Book value as at 31.12.2020 | 1.8 | 0.1 | 0.5 | 2.3 |
| - Property, plant and equipment | ||||
| Book value as at 01.01.2020 | 41.6 | 6.4 | 84.0 | 131.9 |
| Impairment | (16.8) | 0.0 | 0.0 | (16.8) |
| Depreciation | (5.5) | (1.1) | (10.4) | (17.0) |
| Additions, Disposals & Translation differences |
10.8 | 1.7 | 19.8 | 32.3 |
| Book value as at 31.12.2020 | 30.1 | 6.9 | 93.4 | 130.5 |
| - Right-of-use assets | ||||
| Book value as at 01.01.2020 | 15.8 | 2.3 | 24.2 | 42.3 |
| Impairment | (5.6) | 0.0 | 0.0 | (5.6) |
| Depreciation | (2.5) | (1.2) | (3.6) | (7.3) |
| Additions, Disposals & Translation differences |
1.4 | 2.1 | 8.7 | 12.2 |
| Book value as at 31.12.2020 | 9.1 | 3.1 | 29.4 | 41.6 |
| Total impairment losses | (30.5) | (33.0) | (19.2) | (82.7) |
The impairment test showed that the Driveline as a CGU is highly sensitive to any changes in assumptions, meaning any sustained declines in free cash flow would trigger a need for additional impairment. However, reasonable increase of free cash flow combined with WACC closer to historic levels would lead to partial reversal of impairment of assets other than the Goodwill booked in Q2 2020. Management is confident that Driveline's carrying value is properly supported by the Group's strategic three-year plan (STP) and assumptions used.
The analysis and impairment test based on the Group's STP indicate that value-in-use is significantly higher compared to Q2, resulting from the more optimistic outlook in years 2022 and 2023. Therefore, no reasonable change in any of the key assumptions would cause the recoverable amount to be lower than the carrying value.
The impairment test performed as of December 31, 2020 indicates a significantly higher value-in-use compared to Q2 2020. This is due to the more optimistic outlook for the years 2021-2023. The sensitivity analysis based on the Group's STP indicates that no reasonable change in any of the key assumptions would cause the unit's recoverable amount to be lower than its carrying value.
NOTE 5 – INTEREST-BEARING LOANS AND BORROWINGS
| (MEUR) | 31.12.20 | 31.12.19 |
|---|---|---|
| Long-term interest-bearing loan and borrowing | 278.4 | 276.4 |
| IFRS 16 long-term lease liabilities | 89.6 | 92.2 |
| Capitalized arrangement fees1 | (4.9) | (5.8) |
| Current interest-bearing liabilities | 13.8 | 23.8 |
| Total interest-bearing liabilities | 376.9 | 386.5 |
1 As at December 31, 2020, the fees relate to the bond and are amortized over the 7-year period of the bond.
Interest-bearing liabilities by currency
| (MEUR) | 31.12.20 | 31.12.19 |
|---|---|---|
| EUR | 317.3 | 297.1 |
| USD | 18.8 | 8.1 |
| Other currencies | 45.7 | 87.2 |
| Capitalized arrangement fees | (4.9) | (5.8) |
| Total interest-bearing loan and borrowing | 376.9 | 386.5 |
The liquidity reserve of KA Group consists of cash equivalents in addition to undrawn RCF and securitization facilities.
| (MEUR) | 31.12.20 | 31.12.19 |
|---|---|---|
| Cash reserve | 67.4 | 25.2 |
| Restricted cash | (0.4) | (0.8) |
| Undrawn RCF facility | 70.0 | 40.0 |
| Undrawn Securitization facility | 60.0 | 0.0 |
| Liquidity reserve | 197.0 | 64.4 |
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Interest income | 0.0 | 0.0 | 0.1 | 0.6 |
| Interest expenses | (5.4) | (5.6) | (20.9) | (21.1) |
| Foreign currency gains (losses)1 | (5.7) | 0.6 | (23.0) | 2.9 |
| Change in valuation currency contracts - Note 5 | 0.0 | 0.0 | 0.0 | 0.0 |
| Account receivables securitization - Expenses | (0.5) | 0.0 | (0.5) | 0.0 |
| Other financial items - Note 5 | (0.7) | (0.4) | (2.7) | (1.3) |
| Net financial items - Note 5 | (12.3) | (5.4) | (47.0) | (18.9) |
1 Is made up of a realized currency loss of MEUR 1.4 and of an unrealized currency loss of MEUR 4.3 (Q4 2019: realized loss of MEUR 2.0 and unrealized gain of MEUR 2.6)
The Company has consolidated its shares by a consolidation factor of 10:1, increasing par value per share from NOK 0.10 to NOK 1. In order to facilitate the share consolidation, the Company increased the share capital by NOK 0.70 (7 shares each of par value NOK 0.10) to obtain a total number of shares outstanding divisible by 10.
This section describes the non-GAAP financial measures that are used in this report and in the quarterly presentation.
The following measures are neither defined nor specified in the applicable financial reporting framework of the IFRS GAAP. They may be considered as non-GAAP financial measures that may include or exclude amounts that are calculated and presented according to the IFRS GAAP.
Free cash flow
NIBD
EBIT, earnings before interest and tax, is defined as the earnings excluding the effects of how the operations were financed, taxed and excluding foreign exchange gains & losses. Adjusted EBIT is defined as EBIT excluding unusual or non-recurring items as well as restructuring items, which are defined as any incurred costs or sales reduction of an unusual or non-recurring nature in connection with the considered restructuring of the activities of the Group.
EBIT is used as a measure of operational profitability. Consequently, the Group also reportsthe adjusted EBIT, which is the EBIT excluding restructuring items and impairment losses.
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Operating profit (loss) / EBIT1 | 21.7 | 11.0 | (76.2) | 62.4 |
| Restructuring items2 | 0.8 | 4.1 | 4.2 | 8.5 |
| Impairment losses3 | 0.0 | 0.0 | 82.7 | 0.0 |
| Adjusted EBIT1+2+3 | 22.5 | 15.1 | 10.7 | 70.9 |
EBITDA is defined as EBIT (previously defined) before depreciation and amortization. Adjusted EBITDA is therefore EBITDA excluding restructuring items and impairment losses.
EBITDA is used as an additional measure of the Group's operational profitability, excluding the impact from depreciation and amortization.
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Operating profit (loss) / EBIT | 21.7 | 11.0 | (76.2) | 62.4 |
| Depreciation & Write-off of tangible assets | 11.6 | 12.5 | 43.7 | 42.9 |
| Amortization & Write-off of intangible assets | 1.0 | 1.5 | 6.2 | 5.1 |
| EBITDA1 | 34.3 | 25.1 | (26.3) | 110.4 |
| Restructuring items(*) 2 | 0.8 | 3.1 | 4.2 | 7.4 |
| Impairment losses3 | 0.0 | 0.0 | 82.7 | 0.0 |
| Adjusted EBITDA1+2+3 | 35.1 | 28.1 | 60.6 | 117.9 |
(*) Excluding depreciation and amortization
RESTRUCTURING ITEMS PER SEGMENT
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Interior | 0.2 | 0.5 | 0.5 | 0.5 |
| Powertrain & Chassis | 1.6 | 0.2 | 1.8 | 0.2 |
| Specialty Products | (1.0) | 2.2 | (0.7) | 2.1 |
| Other | (0.0) | 1.2 | 2.6 | 5.6 |
| Group total | 0.8 | 4.1 | 4.2 | 8.5 |
IMPAIRMENT LOSSES PER SEGMENT
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Interior | 0.0 | 0.0 | 52.3 | 0.0 |
| Powertrain & Chassis | 0.0 | 0.0 | 30.4 | 0.0 |
| Specialty Products | 0.0 | 0.0 | 0.0 | 0.0 |
| Other | (0.0) | 0.0 | (0.0) | 0.0 |
| Group total | 0.0 | 0.0 | 82.7 | 0.0 |
Free Cash Flow is measured based on sum of cash flow from operating activities, investing activities, financial activities and currency effects on cash (together described as Change in cash), excluding net draw-down/repayment of debt and proceeds received from capital increase/purchase of treasury shares.
The Group considers that this measurement illustrates the amount of cash the Group has at its disposal to pursue additional investments or to repay debt.
| (MEUR) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Cash flow - Operating activities | 37.0 | 25.5 | 74.1 | 51.3 |
| Cash flow - Investing activities | (26.6) | (17.0) | (58.6) | (63.3) |
| Cash flow - Financing activities | (6.8) | (6.6) | 41.6 | (22.9) |
| Currency effects on cash | (7.1) | (1.2) | (14.9) | 0.7 |
| Add back / less: | ||||
| Proceeds from capital increase | 0.6 | (0.0) | (89.7) | 0.0 |
| Purchase of treasury shares | 0.9 | 0.0 | 1.3 | 0.0 |
| Net draw-down/repayment of debt | (0.7) | 0.0 | 9.3 | (10.3) |
| Free Cash Flow | (2.7) | 0.7 | (37.0) | (44.4) |
Net Interest-Bearing Debt (NIBD) consists of interest-bearing liabilities less cash and cash equivalents.
The Group risk of default and financial strength is measured by the net interest-bearing debt. It shows the Group's financial position and leverage. As cash and cash equivalents can be used to repay debt, this measurement shows the net overall financial position of the Group.
| (MEUR) | 31.12.20 | 31.12.19 |
|---|---|---|
| Long-term interest-bearing liabilities | 363.1 | 362.7 |
| Other short-term interest-bearing liabilities | 13.8 | 23.8 |
| Cash and cash equivalents | (67.4) | (25.2) |
| Net Interest Bearing Debt | 309.5 | 361.3 |
Capital Employed is equal to operating assets less operating liabilities. Operating assets and liabilities are items, which are involved in the process of producing and selling goods and services. Long-term financial assets and obligations are excluded, as those are involved in raising cash for operations and disbursing excess cash from operations.
Capital Employed is measured to assess how much capital is needed for the operations/business to function and evaluate if the capital employed can be utilized more efficiently and/or if operations should be discontinued.
| (MEUR) | 31.12.20 | 31.12.19 |
|---|---|---|
| Total assets | 980.7 | 927.0 |
| Deferred tax liabilities | (14.9) | (21.8) |
| Other long-term liabilities | (21.3) | (21.6) |
| Current liabilities | (253.2) | (237.9) |
| Capital employed | 691.2 | 645.6 |
Capital Employed as at December 31, 2020, does not consider the assets' impairment of MEUR 82.7.
Return on Capital Employed (ROCE) is based on EBIT for the last twelve months divided by the average of capital employed at the beginning and end of the period.
Return on Capital Employed is used to measure the return on the capital employed without taking into consideration the way the operations and assets are financed during the period under review. The Group considers this ratio as appropriate to measure the return of the period.
| (MEUR) | Q4 2020 | FY 2019 | ||
|---|---|---|---|---|
| Capital employed beginning1 | 01.01.2019 | 645.6 | 01.01.2018 | 629.2 |
| Capital employed at end2 | 31.12 2020 | 691.2 | 31.12 2019 | 645.6 |
| Adjusted EBIT last twelve months3 | 10.7 | 70.9 | ||
| Adjusted ROCE (3 / (1+2)) * 200% | 1.6% | 11.1% |
Capital Employed as at December 31, 2020, does not consider the assets' impairment of MEUR 82.7.
We confirm, to the best of our knowledge, that the condensed set of consolidated financial statements for the year ended on December 31, 2020, has been prepared in accordance with IAS34 – Interim Financial Reporting and gives a true and fair view of Kongsberg Automotive ASA and its Group companies' assets, liabilities, financial position and profit or loss as a whole.
We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the year 2020 and their impact on the condensed set of consolidated financial statements, a description of the principal risks and uncertainties for the remaining six months of the financial year, and major related parties' transactions.
Kongsberg, February 25, 2021
Firas Abi-Nassif Chairman (Sign.)
________________________
Peter Schmitt Board member (Sign.)
________________________
Leif Harvard Stromhaug Employee representative (Sign.)
________________________
Emese Weissenbacher Board member (Sign.)
________________________
Bjørn Ivan Ødegård Employee representative (Sign.)
________________________
Ellen M. Hanetho Board member (Sign.)
________________________
Gerard Cordonnier Board member (Sign.)
________________________
Tonje Sivesindtajet Employee representative (Sign.)
________________________
Norbert Loers co-CEO ad interim and CFO (Sign.)
________________________
Robert Pigg co-CEO ad interim and CFO (Sign.)
________________________
| Firas Abi-Nassif | Chairman |
|---|---|
| Emese Weissenbacher | Shareholder elected |
| Peter Schmitt | Shareholder elected |
| Ellen M. Hanetho | Shareholder elected |
| Gerard Cordonnier | Shareholder elected |
| Leif Harvard Stromhaug | Employee elected |
| Bjørn Ivan Ødegård | Employee elected |
| Tonje Sivesindtajet | Employee elected |
| Norbert Loers | Co Chief Executive Officer & Chief Financial Officer, Executive Vice President |
|---|---|
| Robert Pigg | Co Chief Executive Officer & Senior Vice President, Specialty Products |
| Scott Paquette | Interim President, Interior Systems |
| Bob Riedford | Executive Vice President, Powertrain & Chassis |
| Dzeki Mackinovski | Executive Vice President, Purchasing |
| Virginia Grando | Executive Vice President, Quality |
| Marcus von Pock | Executive Vice President, Human Resources & Communications |
| Jon Munthe | General Counsel |
| Doug Tushar | Senior Vice President, IS&T |
| The quarterly reports and financial statements will be published on the following days: | |
|---|---|
| 1 st quarter 2021 |
May 12, 2021 |
| nd quarter 2021 and Half-yearly Report 2 |
July 30, 2021 |
| rd quarter 2021 3 |
October 29, 2021 |
Kongsberg Automotive ASA KA Group AG Dyrmyrgata 48 Europaallee 39 3601 Kongsberg, Norway 8004 Zürich, Switzerland Phone +47 32 77 05 00 Phone +41 43 508 65 60
www.kongsbergautomotive.com
Operational Headquarters
Enhancing the driving experience
Kongsberg Automotive ASA, Dyrmyrgata 48, 3601 Kongsberg, Norway, Phone +47 32 77 05 00
www.kongsbergautomotive.com
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.