Kongsberg Automotive reports Q4 2019 results

Kongsberg Automotive ASA Q4 2019 Report and Presentation follow attached.

Q4 2019 Highlights:

• Revenues declined by MEUR 7.5 (-2.6%) YoY to MEUR 280.8. This includes positive FX effects of MEUR 1.8. On a fixed exchange rate basis, our revenues declined by 3.2% YoY.
• In Q4 we experienced strongly declining revenues in November and December to a greater degree than the decline in our customers’ production rates.
  • We continued to gain market share in the passenger car market, mainly driven by strong P&C growth in China. Overall, on a constant currency basis we had virtually flat YoY revenues in the passenger car market in which production output declined by 5% in Q4.
  • In the truck market, on a constant currency basis, our revenues declined by 10% YoY in line with the reduction in global production volumes.
  • Revenues generated in other end-markets declined by 3% on a constant currency basis.
• We won a significant level of new business despite increasing market uncertainties. We were awarded new business totaling MEUR 89 on an annualized basis, corresponding to MEUR 427 in expected lifetime revenues.
• Adj. EBIT amounted to MEUR 15.1 which was MEUR 5.6 lower than in Q4 2018.
  • The primary reason for the shortfall to our guidance was the lower revenue levels in Q4 and the associated fall-through.
  • The positive impacts from improved operational performance were partly offset by inefficiencies in the Interior plant in Brzesc, Poland.
  • In Q4 2019 we had an inventory revaluation loss; in Q4 2018 we benefitted from a revaluation gain. This was driven by operational improvements and raw material pricing.
• Total cash flow for the quarter was MEUR +1, mainly driven by working capital improvements.
• Our total liquidity reserve at the end of the quarter amounted to MEUR 65.2 of which MEUR 0.8 were restricted cash on hand.
• Sequentially, the adjusted gearing ratio deteriorated slightly; from 3.0X to 3.1X. Excluding IFRS 16 effects, our LTM adjusted gearing ratio (NIBD/Adj. EBITDA) was 2.5X; a YoY increase of 0.6X.

The earnings conference call including a review of the Q4 Presentation can be followed through this link starting at CET 09:00:

https://globalmeet.webcasts.com/starthere.jsp?ei=1284865&tp_key=f57f7cec24