Kongsberg Automotive ASA Business Report FY ended Dec. 2015
Financial Overview |
(in million EUR) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Rate of Change (%) |
Factors | |
| Overall | ||||
| Sales | 1,020.1 | 979.1 | 4.2 | 1) |
| EBITDA | 102.6 | 97.0 | 5.8 | - |
| Operating revenues by business segment | ||||
| Interior | 330.1 | 304.5 | 8.4 | 2) |
| Driveline | 253.9 | 265.0 | (4.2) | 3) |
| Fluid Transfer | 215.0 | 193.5 | 11.1 | 4) |
| Driver Control | 256.1 | 252.7 | 1.3 | 5) |
Factors
1) Overall Sales
-Revenues for the Group amounted to EUR 1020.1 million in 2015, an increase of EUR 41.0 million (4.2%) compared with the previous year, including favorable currency effects of EUR 61.1 million. Excluding the currency effects the revenues decreased by EUR 20.1 million. The decrease in revenues were primarily driven by some major programs reaching end of production in the passenger car segment, related to cables and shifters in Europe, and in the headrest and armrest business in North America. On the other hand, the seat comfort revenues within the passenger car segment in Europe increased.
2) Interior
-Revenues in Interior increased by 25.6 million (8.4%) in 2015 compared to 2014, including favorable currency effects of EUR 30.4 million. The business area’s adjusted operating profit amounted to EUR 27.9 million, an increase of EUR 1.9 million (7.5%) driven by favorable sales mix and lower bonus accruals, partially offset by increased R&D efforts of EUR 5.3 million to support future growth opportunities.
3) Driveline
-Driveline revenues declined by EUR 11.1 million (4.2%) in 2015, including positive currency effects of EUR 15.4 million, due to some major programs reaching end of production.
4) Fluid Transfer
-Fluid Transfer revenues increased by EUR 21.5 million (11.1%), including positive currency effects of EUR 11.6 million, reflecting conversion of higher sales and a favorable product mix.
5) Driver Control
-Driver Control revenues increased by EUR 3.4 (1.3%) million in 2015. Operating profit decreased by EUR 1.6 million (-8.9%) to EUR 16.8 million, driven by the loss on sale of business (EUR 1.5 million) and product mix effects. The decline was partially offset by operational improvements and lower development costs of EUR 2.2 million.
New Business Wins
- The Company secured a record level of new business wins with an annualized value of EUR319 million.
- The proportion of new business wins related to growth platforms increased from about 35% last year to 47%.
- The Company has won significant contracts for AMT (Automated Manual Transmissions), Shift-by- Wire, On Board Charging systems for plug-in hybrids, innovative Seat Comfort solutions and air brake Couplings as a result of the Company's increased efforts.
Contracts
| -Major Contracts in FY ended Dec. 2015 | (From a press release in 2015) |
| Customer | Product | Contract detail and value | Remark |
| Interior | |||
| A European premium automaker, mid-size luxury vehicles | The global supply of seat heat and seat ventilation | EUR 76.2 million (10 year) |
-The production will commences in the first quarter of 2018 in Pruszkow, Poland. |
| A major North American vehicle manufacturer |
Seat comfort solutions includes a range of pneumatic seat comfort products |
EUR 50 million (6 years) |
-The production will commences in 2018 in Reynosa, Mexico; Pruszkow, Poland and Wuxi, China. |
| Driveline | |||
| A major global OEM, B segment cars which will be sold in Europe, South America and Asia under two different brands. | Manual gear shifter system | EUR 83 million (7 years) |
-The production will commences in the first half of 2016 at Cluses (France), Vrable (Slovakia), Wuxi (Jiangsu Province, China), Jundiai (Brazil), Gurgaon (India) and Nuevo Laredo (Mexico). |
| A major European OEM, the next generation of vans/multi-purpose vehicles | Manual shifter systems | EUR 75 million |
-The production will commences in the first quarter of 2018 at Vrable, Slovakia. |
| A major North American OEM | Automatic gear shifter cables | EUR 24 million (3 years) |
-The production commences in the second half of 2017 at Nuevo Laredo Mexico |
| Fluid Transfer | |||
| A global passenger car manufacturer | Brake assemblies | EUR 26 million | -The production will commences in 2018 in Wuxi, Jiangsu Province, China |
| A European bus manufacturer and a Global supplier of braking systems for commercial vehicles | Air-brake coupling system | EUR 17 million (Average annual revenues of EUR 5.3 million) |
-The production will commences in Raufoss, Norway. |
| Driver Control | |||
| Commercial vehicles | Automated manual transmission (AMT) systems | EUR 110 million (5 years) |
-The supply will commence in ramp up in 2016 and 2017 in South and North America. |
| A major European truck manufacturer | Chassis products | EUR 34 million ( 5 years) |
-The supply will commence in 2016. |
Awards
-The Company's plant Wuxi, China, received the 2015 Volvo Cars Quality Excellence Award for strong performance in areas like quality, lean, logistics and trust building. The Company's plant Wuxi supplies Volvo with automatic shifters and seat heaters.
R&D Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Overall | 70.5 | 58.7 | 48.6 |
| % of Sales | 7.0 | 6.0 | 4.9 |
R&D Structure
-The Company's overall spending on R&D totaled 7% of sales in 2015. This involves a team of approximately 541 highly skilled people.
-The tech centers are located in the USA (Novi), Canada (Grand Mere), China (Wuxi), Sweden (Mullsjo) and Norway (Kongsberg).
R&D Facilities
State-of-the-art TechCenter in Kongsberg
-The Company's new research and development center at its headquarters in Kongsberg was completed in November 2015, and shows commitment to investing in and developing tomorrow's technology. The Company's new Tech Center will be the global hub for developing the next generation AMT systems for the global commercial vehicle industry.
Capital Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Interior | 15.5 | 9.5 | 7.2 |
| Driveline | 8.4 | 9.2 | 6.0 |
| Fluid Transfer | 7.9 | 7.4 | 6.0 |
| Driver Control | 9.2 | 7.4 | 8.8 |
| Eliminations & other | 0.1 | 0.5 | (0.1) |
| Total | 41.0 | 34.0 | 27.9 |