Kongsberg Automotive Holding ASA Business Report FY2011

Business Highlights

Financial Overview

(in million euros)
  FY2011 FY2010 Rate of Change
(%)
Factors
Overall
Sales 999.7 864.4 15.7 1)
EBITDA 82.0 57.1 43.6 -
Operating revenues by business segment
Driveline Systems 327.3 289.5 13.1 -
Interior Systems 247.9 220.5 12.4 2)
Actuation & Chassis 166.0 114.3 45.2 3)
Fluid Transfer Systems 170.9 132.6

28.9

-
Power Products Systems 133.3 134.9 (1.2) -
Eliminations & other (45.7) (27.4) - -

Factors
1)
-The increase in revenues from 2010 to 2011 reflects the improved market conditions in the automotive industry in general in addition to the company's market share development and customer mix. All major markets have experienced positive development across all business areas during 2011.

2)
-The effect of higher sales was more than offset by product launch cost, negative margin mix due to relatively more revenue from NA versus EU, and non-recurring costs related to the closure of the plant in Burton UK.

3)
-The Actuation & Chassis revenues were up 51.7 million euros (45.2%), reflecting a strong recovery in the commercial vehicle segments.

Contracts

Major Contracts in 2011 (From a press release in 2011)
Customer Product Contract detail and value Production Start
German OEM (for North American Market) Electro-mechanical seat release actuator 10.5 million euros
(5 years)
2012Q2
at the company's facility in Matamoros and Reynosa, Mexico.
American OEM (for North American Market) Pneumatic lumbar system
Major truck manufacturer Suspension system for truck cabins 40 million euros
(5 years)
2013
Major OEM Gear selector system
(Entry, B and C seegment cars)
54 million euros
(3 years)
2013
at the company's facility in France, India, China.
Chinese truck manufacturer Air-brake couplings 10 million euros 2011
at the company's facility in Raufoss, Norway and Wuxi, China.
US heavy-duty engine manufacture High temperature fuel and turbo hose ASSY 2011
German OEM Seat heat-system - 2013
at the company's facility in Pruszkow, Poland.
European OEM Manual gear shifter system 16 million euros
(6 years)
2013
at the company's facility in Vrable, Slovakia.
Chinese domestic OEM Automatic gear shifter system 16 million euros
(6 years)
Sept. 2011
at the company's facility in Wuxi, China.
European OEM Shift by wire gear shifter system (for environmentally friendly small cars) 34 million euros
(7 years)
2014
at the company's facility in Vrable, Slovakia.
European OEM Manual gear shifters (for low-emission 4-cylinder petrol engine B and C segment cars) 25 million euros
(6 years)
2013
at the company's facility in Vrable, Slovakia.
Commercial vehicle manufacture Fuel line system
(for mid-duty trucks)
15 million euros
(6 years)
2012
at the company's facility in Epila, Spain.
Major OEM Gear Shifter on a C-segment in Chinese market 25 million euros
(6 years)
2012Q3
at the company's facility in Wuxi, China.
Korean OEM Seat heating systems (for North American market) 15 million euros
(7 years)
2012Q2
American OEM Seat heating systems, rear center armrests, rear head restraints and seat actuation cables on small SUV. (Annual production volume is projected to be over 300,000 vehicles) 32 million euros
(5 years)
Late 2011
European commercial vehicle manufacturer Gearshift systems 42 million euros
(6 years)
2014
at the company's facility in Hvittingfoss, Norway.
European OEM Seat comfort systems 33 million euros
(7 years)
Mid 2012
European commercial vehicle manufacturer Gearshift systems 14 million euros
(5 years)
2013
at the company's facility in Mullsjo, Swaden.
Truck manufacturer in North America Clutch actuation system 35 million euros
(5 years)
2012

R&D

R&D Structure

-R&D facility is located in Kongsberg, Norway.

Product Development

-The Company and Qrtech AB of Sweden announced the formation of a joint venture company focusing on development and design in the field of power electronics in a hybrid- or electric vehicle. Kongsberg initially will acquire 51 percent and Qrtech 49 percent of the joint venture, which will be called e-Driveline AB. The joint venture, which will be located in Gothenburg, Sweden, is expected to be operational at the end of April 2011. Qrtech AB specializes in development of electronics and software for automotive application. (From a press release on April 4, 2011)

Investment Activities

Capital Expenditures

(in million euros)
  FY2011 FY2010 FY2009
Driveline Systems 8.9 5.2 3.7
Interior Systems 9.5 9.0 4.2
Acutuation & Chassis 5.1 3.0 2.6
Fluid Transfer Systems 5.3 2.9 1.9
Power Products Systems 2.5 1.0 0.4
Eliminations & other 0.0 0.9 0.0
Total 31.3 22.1 12.8