group finance 27.04.2006 q1-2006 presentation 1 kongsberg automotive 1q 2006 olav volldal (ceo)

27.04.2006Q1-2006 presentation 1Group Finance

Kongsberg Automotive1Q 2006Olav Volldal (CEO)


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.


Operating revenue pr quarter KA Group

527 539620 620 651

597653

720

0

100

200

300

400

500

600

700

800

Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06


Operating revenue pr quarter KA Group

• Milan contributed with NOK 101 mill in 1st quarter 2006.

• Adjusting for – non-product sales (tooling and

R&D income)

– price reductions

– currency effects

• the underlying volume increase is 3,6 %.

620

720

500

550

600

650

700

750

800

Q1 05 Q1 06


EBITA pr quarter KA Group

86

7275

85

71

90

75

57

0

10

20

30

40

50

60

70

80

90

100

Q2 04* Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %


EBITA pr quarter KA Group

• Milan contributes with NOK 12 mill in 1st quarter 2006.

• 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.

86

71

50

55

60

65

70

75

80

85

90

95

100

Q1 05 Q1 06


KA Group – Key figures

1000 Nok 2006 2005 2005

Product Sales 689 381 582 660 2 385 956 Other Sales 30 385 37 122 139 284Total Operating revenue 719 766 619 782 2 525 240Cost of Goods sold (426 193) (359 347) (1 426 979)Contribution 293 573 260 435 1 098 261Contribution m argin 40,8 % 42,0 % 43,5 %R&D and Marketing (54 260) (56 237) (214 689)Other Operating expenses (132 303) (113 740) (501 132)EBITDA 107 010 90 458 382 440Depreciation (21 046) (19 256) (79 679)EBITA 85 964 71 201 302 761EBITA % 11,9 % 11,5 % 12,0 %Am ortisation (2 797) (3 332) (10 552)EBIT 83 167 67 869 292 209Profit before taxes 65 426 43 327 240 313EBIT % 11,6 % 11,0 % 11,6 %Net Profit 46 452 34 685 177 809

Capital em ployed 793 675 755 173 757 023Capex 22 516 34 103 121 450

Net interes t bearing-debt 591 017 617 597 638 362Equity 529 373 362 970 489 483Total Assets 1 887 964 1 545 588 1 748 469Equity ratio 28,0 % 23,5 % 28,0 %

1st quarter

*Profit before tax includes extraordinary finance elements of NOK 8 million.


Net Interest bearing debt(Incl Vikaberg and Bilco)

799772

797

717 712

657

591

200

250

300

350

400

450

500

550

600

650

700

750

800

850

900

Q2 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06

NOK mill


Seat Comfort (SC)

Head Restraints

Seat Ventilation & Cooling

Seat Heating

Seat Support Systems

Smart TCU

Smart Wire


SC Highlights

• Market stable compared to 1st quarter 2005.

• 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.


Operating revenue pr quarter SC

242 225252 245

274304 307

357

0

50

100

150

200

250

300

350

400

Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06


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

357

245

0

50

100

150

200

250

300

350

400

Q1 05 Q1 06


EBITA pr quarter SC

5854

515543

4744

39

0

10

20

30

40

50

60

70

Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06

0 %

3 %

5 %

8 %

10 %

13 %

15 %

18 %

20 %

23 %


EBITA pr quarter SC

• Milan contributes with NOK 12 mill in 1st quarter 2006.

• The rest of the portfolio is up NOK 3 mill– Relocation of production

– Higher R&D and marketing costs.

58

43

20

30

40

50

60

70

80

Q1 05 Q1 06


Commercial Vehicle Systems (CVS)

Clutch Actuation Systems

Gearshift Systems

Components

Air Couplings


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.


Operating revenue pr quarter CVS

188

231

273 262278

216249

275

0

50

100

150

200

250

300

Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06


Operating revenue pr quarter CVS

The increase reflects the market in general and the production rate of our customers.

262

275

200

210

220

230

240

250

260

270

280

Q1 05 Q1 06


EBITA pr quarter CVS

25

6

22

27

26

31

27

13

0

5

10

15

20

25

30

35

Q2 04* Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %


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.

2526

15

17

19

21

23

25

27

29

31

33

35

Q1 05 Q1 06


Gearshifts (GS)

Manual shiftersAutomatic shifters


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.


Operating revenue pr quarter Gearshift

9782

96

11298

7791 88

0

20

40

60

80

100

120

Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06


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.

112

88

0

20

40

60

80

100

120

Q1 05 Q1 06


EBITA pr quarter Gearshift

3

12

2

5

3

8

460

2

4

6

8

10

12

14

Q2 04* Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %


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.

33

0

1

2

3

4

5

6

Q1 05 Q1 06


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.


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.


General meeting

Remind all shareholders about the General meeting on the 15th of May at 1300

in Oslo


Q & A

group finance 27.04.2006 q1-2006 presentation 1 kongsberg automotive 1q 2006 olav volldal (ceo)

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