Group Finance Q presentation 1 Kongsberg Automotive 1Q 2006 Olav Volldal (CEO)
Group Finance Q presentation 2 Highlights first quarter 2006 The market has been stable for car production in Europe and North America and a small increase in volumes for heavy trucks. Some key customers have lost market share. The volume growth corrected for the effect of Milan, currency effects and price reductions is 3,6 %. New important orders won for Head Restraints in North America and Seat Comfort products in Asia. Improved operations. Actions taken to prepare for a weaker market in second half of 2006 and growth in 2007.
Group Finance Q presentation 3 Operating revenue pr quarter KA Group
Group Finance Q presentation 4 Operating revenue pr quarter KA Group Milan contributed with NOK 101 mill in 1st quarter Adjusting for –non-product sales (tooling and R&D income) –price reductions –currency effects the underlying volume increase is 3,6 %.
Group Finance Q presentation 5 EBITA pr quarter KA Group
Group Finance Q presentation 6 EBITA pr quarter KA Group Milan contributes with NOK 12 mill in 1st quarter The increase in EBITA for the rest of the Group is consequently NOK 3 mill. The main explanation factors are –Higher raw material prices. –Lower R&D and marketing cost. –Excluding Milan other operating expenses are down.
Group Finance Q presentation 7 KA Group – Key figures *Profit before tax includes extraordinary finance elements of NOK 8 million.
Group Finance Q presentation 8 Net Interest bearing debt ( Incl Vikaberg and Bilco) NOK mill
Group Finance Q presentation 9 Seat Comfort (SC) Head Restraints Seat Ventilation & Cooling Seat Heating Seat Support Systems Smart TCU Smart Wire
Group Finance Q presentation 10 SC Highlights Market stable compared to 1st quarter Several new businesses won for Head Restraints and Seat Heaters in the North American market... and Seat Comfort products in Asia. High activity regarding the German market. Significant cost reduction programs introduced.
Group Finance Q presentation 11 Operating revenue pr quarter SC
Group Finance Q presentation 12 Operating revenue pr quarter SC Milan contributed with 101 mill. The remaining product sale is up NOK 1 mill –Higher volume for Seat Support in Europe and seat heaters in China –Negative impact of price reductions. –Positive currency Other revenue up NOK 10 mill
Group Finance Q presentation 13 EBITA pr quarter SC
Group Finance Q presentation 14 EBITA pr quarter SC Milan contributes with NOK 12 mill in 1st quarter The rest of the portfolio is up NOK 3 mill –Relocation of production –Higher R&D and marketing costs.
Group Finance Q presentation 15 Commercial Vehicle Systems (CVS) Clutch Actuation Systems Gearshift Systems Components Air Couplings
Group Finance Q presentation 16 CVS Highlights The European market for Commercial Vehicles up in the 1st quarter. Raw material prices hurt the profit. High market and R&D activities. Strong improvements of internal productivity.
Group Finance Q presentation 17 Operating revenue pr quarter CVS
Group Finance Q presentation 18 Operating revenue pr quarter CVS The increase reflects the market in general and the production rate of our customers.
Group Finance Q presentation 19 EBITA pr quarter CVS
Group Finance Q presentation 20 EBITA pr quarter CVS Positive impact from higher sales balanced by: –Lower contribution as a result of significant increase in raw materials. –Increased activity in R&D and marketing to be able to leverage on future opportunities.
Group Finance Q presentation 21 Gearshifts (GS) Manual shiftersAutomatic shifters
Group Finance Q presentation 22 GS Highlights GM Opel is picking up – Zafira is estimated to sell more than earlier planned. New Saab models have a positive effect on sales. Weak Volvo and Renault sales have negative impact on the top–line. Improved productivity and quality. Drop in revenues for plastic containers.
Group Finance Q presentation 23 Operating revenue pr quarter Gearshift
Group Finance Q presentation 24 Operating revenue pr quarter Gearshift Product sales down 9 mill. –Lower sales of non-strategic plastic products (6 mill). –Price reductions –Some main customers are loosing market shares Other sales down by 15 mill due high tooling sales in 1st quarter 2005.
Group Finance Q presentation 25 EBITA pr quarter Gearshift
Group Finance Q presentation 26 EBITA pr quarter Gearshifts Despite lower sales EBITA is stable at NOK 3 mill. This is due to –Higher capitalization of R&D…. –and reduction of total R&D cost level. –Improved productivity.
Group Finance Q presentation 27 KA Group - Outlook The market for 2nd quarter seems to be much in line with 1st quarter. For the rest of the year we foresee a weaker market. Raw material prices are expected to increase and sales prices will decrease To compensate for this: –Produce more in low cost countries. –Source more from low cost areas. –Improve operations. –Get price compensation for extraordinary raw material price increases.
Group Finance Q presentation 28 General info Change in dividend policy Kongsberg Automotive shall create good financial value for its shareholders, employees and society. Returns to shareholders should be a combination of changes in share price and dividends. Dividends should reflect the results of the company, while recognizing opportunities for new, profitable investments. Over time the returns to shareholders should come more from an increased share price rather than through dividend distributions. The Board of Directors of Kongsberg Automotive considers that dividends over a period should average roughly 35 percent of the company's net income.
Group Finance Q presentation 29 General meeting Remind all shareholders about the General meeting on the 15th of May at 1300 in Oslo
Group Finance Q presentation 30 Q & A