Kongsberg Automotive updates its long-term financial ambitions
Zurich, May 12, 2024: Kongsberg Automotive's (KA) Board of Directors, alongwiththe CEO and Executive Management, have updated its long-term financial goalsandestablished new ambitions for the year 2028.
In the recent months, the Board of Directors, the CEO and ExecutiveManagement,have made a thorough analysis of the company's operational and financialprospects. The current short-term focus is to reduce structural costs andincrease KA's operational efficiency. The objective is to secure positiveearnings and positive cash flow. The guidance for 2024 is that KA will deliverearnings growth, absolute positive earnings, and positive cash flow despiteflatrevenues. This guidance was given on March 12 when the annual report waspublished and reiterated on May 8 when the Q1 results 2024 were published.
Going beyond 2024 the focus is on organic growth and improved profitability. KAhas successfully won numerous long-term contracts with well-reputed automotivebrand names. This portfolio of contracts ensures that we have a platform forgrowth. Albeit our Driveline business - now labelled "non-core" - is set todecrease, we are confident that KA will deliver sustained organic growth initscore business. Once a solid earnings platform has been established KA mayconsider bolt-on acquisitions as a means to further enhance its growth.
By 2028 we expect that min 70% of our revenues will be linked to commercialvehicles. At the same time our non-core business will be insignificant intermsof revenue.
Continued focus on cost control, optimised operational footprint, and highersales will lead to improved earnings performance. The ambition is to lift theEBIT-margin to at least 8.5 % bringing KA in line with best-in-class suppliersto the automotive industry.
The long-term financial ambitions towards 2028 are as follows (replacing allprevious financial goals that were given at the Capital Markets Day in 2021):
· Revenues, above EUR 1.0bn · By organic growth, representing a double-digit % CAGR for the core-business: this being higher than the expected industry growth.
· EBIT margin at or above 8.5% · Annually improve our earnings performance to reach and maintain an EBIT-margin of at least 8.5 %.
"KA is seeking to become a technology and market leader within its corebusinessareas, offering its customers world-class mobility solutions for the future,creating lasting value for all stakeholders" says KA's President & CEO LindaNyquist-Evenrud, adding, "we are optimizing our operations for a moreeffectiveand cost-efficient structure to best serve our customers and to build a morecompetitive position in areas we excel.
Media and communications contact:Therese Sjöborg Skurdal - Director Corporate Communicationstherese.skurdal@ka-group.com+47 982 14 059
Investor Relations contact:Mads Langaard - Head of Investor Relationsmads.langaard@ka-group.com+47 905 81 264
About Kongsberg Automotive ASAKongsberg Automotive provides cutting-edge technology to the global vehicleindustry. We drive the global transition to sustainable mobility by puttingengineering, sustainability, and innovation into practice. Our productportfolioincludes driver and motion control systems, fluid assemblies, and industrialdriver interface products. Find more informationat:?kongsbergautomotive.com (https://www.kongsbergautomotive.com/)
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