Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q1 2020 Earnings Presentation
31 slides from Kongsberg Gruppen Asa's earnings presentation, 2020
Slide 1: Investor Presentation Q1 2020
INVESTOR PRESENTATION Q1 2020 Geir Håøy, President & CEO Gyrid Skalleberg Ingerø, EVP & CFO KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KO
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain forward-looking information and statements. Such forward-looking information and statements are based on the current, estimates and projections of the Company or assumptions based on information currently available to the Company. Such forward-looking in
Slide 3: Key priorities COVID-19
Key priorities COVID-19 SAFEGUARD HEALTH AND SAFETY DELIVER AND SUPPORT CUSTOMERS SECURE FINANCIAL STRENGHT WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 3
Slide 4: COVID-19 measures
COVID-19 measures Close collaboration with Temporary lay-offs and Increased use of remote multiple governmental and other capacity adjustments and digital solutions industrial bodies Enhanced operational follow- Review, postpone and Proposed extraordinary up with all stakeholders optimized internal
Slide 5: Despite challenges related to COVID-19, Kongsberg deliver another strong quarter
Despite challenges related to COVID-19, Kongsberg deliver another strong quarter Order intake Revenue EBITDA EBITDA margin 6 812 6 678 643 9.6% GROUP DEFENCE MARITIME DIGITAL • Growth in all business areas • Crows, US Army • Completed Hydroid • Increased revenue and • Continued high order • NSM, US
Slide 6: Financial status
Financial status Gyrid Skalleberg Ingerø, CFO WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 6
Slide 7: KONGSBERG financial results
KONGSBERG financial results BNOK Order intake Revenues Financial highlights ▪ Order intake ~86% higher in Q1 2020 compared to Q1 2019 (~21 % including CM 6.81 6.68 pro forma order intake in Q1 2019) 5.63 5.33 1.97 86% 1.87 93% ▪ Book-to-bill of 1.02 in Q1 2020 3.66 3.46 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20
Slide 8: Continued high order backlog with a larger share of long term projects
Continued high order backlog with a larger share of long term projects Order backlog continue to grow Increased share of long term projects Order backlog development (BNOK) Distribution of order backlog 33.34 33.34 27% 2022 → 99% 6.74 16.79 31% 2021 15% 2021 → 32% 2020 16.79 42% 2020 rest 53% 2019 r
Slide 9: High positive cash flow from operations supported by proceeds from Hydroid sale
High positive cash flow from operations supported by proceeds from Hydroid sale Strong cashflow development in first quarter Comments Cashflow development (BNOK) ▪ Tax related to sales of Hydroid due later in 2020 3.63 9.54 ▪ MNOK 160 in other financing activity related (0.18) (0.85) 0.34 to purchas
Slide 10: Successful closing of Hydroid transaction
Successful closing of Hydroid transaction Cashflow from sale of Hydroid Accounting gain from sale of Hydroid (BNOK) (BNOK) 3.63 3.63 2.02 1.61 1.42 2.98 0.60 0.65 Cash flow from sale Federal & state tax Cash flow after EV 350 NIBD, Equity, Gain Tax After transaction tax MUSD WC, GW and before tax ta
Slide 11: Net Working Capital
Net Working Capital – Kongsberg Maritime 13.8% 12.8% 11.8% 9.5% 7.9%* 7.2%* 6.4% 3.5% 5.3%* Q4 1.28 0.95 1.14 1.14 NWC Q1 18 0.81 Q2 18 0.87 Q3 18 0.66 Q4 18 0.54 Q1 19 Q2 19 Q3 19 0.90 Q4 19 Q1 20 NWC in % of LTM revenue Working capital (BNOK) *Includes pro forma Revenue for Commercial Marine Net W
Slide 12: Strong cash balance and positive development in ROACE
Strong cash balance and positive development in ROACE Net debt and cash development Development in ROACE explained by capital employed Cash and net debt (BNOK) Average capital employed (BNOK) and ROACE (%) 10.0 10.4 13.1% 9.5 10.1% 10.1% 5.7 10.42 4.5 3.0 3.7 2.7 2.6 7.08 7.04 0.6 0.7 0.3 0.4 (0.2)
Slide 13: Kongsberg Maritime Q1
▪ Including Commercial marine (cm) ▪ Kongsberg Maritime ▪ (KM) Kongsberg Maritime Q1 WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 13
Slide 14: KM order intake and backlog
KM order intake and backlog Increased order intake and positive development in order backlog Increased share of longer projects Order backlog and order intake (BNOK) Distribution of order backlog 12.40 12.40 12.20 10% 2022 → 9.43 29% 2021 5.46 5.46 5% 2021 → 4.32 4.81 27% 2020 61% 2020 rest 1.97 109
Slide 15: Order intake distribution
3% SYSTEMS & DECK MACHINERY 28% INTEGRATED 17% SOLUTIONS PROPULSION & ENGINES Q1 2020 Order intake KM 15% distribution 37% GLOBAL CUSTOMER SENSORS & ROBOTICS** SUPPORT* 5% Order intake KM Q1 2020: MNOK 4 813 SYSTEMS & DECK 19% MACHINERY INTEGRATED Order intake KM Q1 2019: MNOK 2 306 16% SOLUTIONS Or
Slide 16: High revenue growth supported by growth in EBITDA and EBIT
High revenue growth supported by growth in EBITDA and EBIT Revenue EBITDA EBIT Revenue (BNOK) EBITDA (BNOK) and EBITDA margin (%) EBIT (BNOK) and EBIT margin (%) 10.8% 7.1% 8.6% 4.54 3.7% 4.6% 0.39 1.2% 139% 1.87 90% 0.17 26% 1.90 0.21 0.14 (0.03) Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 (0.09) Q1 19 Q2 19 Q3
Slide 17: Value Capture program on track
Value Capture program on track Key figures Status per Q1 P&L effect of cost savings relative to 2018 cost base, MNOK • Value Capture program continues with undiminished effort (important contributor to COVID-19 effect mitigation) Quarterly effects Annually effects • Realized savings of ~135 MNOK in
Slide 18: 135 MNOK savings realized in Q1 2020
135 MNOK savings realized in Q1 2020 Realized cost savings P&L effect of cost savings relative to 2018, MNOK Q1 2020 effects Q1 Q2 Q3 Q4 Q1 Area Comments to realized savings ‘19 ‘19 ‘19 ‘19 ‘20 Effects of co-locations, production facility shutdowns and optimization of Footprint & delivery streamlini
Slide 19: Integration and restructuring costs
Integration and restructuring costs Integration cost Restructuring cost (MNOK) (MNOK) 32 415 7 149 273 142 110 FY18 FY19 Q1 20 Accumulated FY19 Q1 20 Accumulated WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 19
Slide 20: KDA
KDA KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or in pa rt, must include this
Slide 21: Stronger order intake supported by increased share of long term projects
Stronger order intake supported by increased share of long term projects ~56% increase in order intake and ~BNOK 20 in order backlog Significant increase in long term projects Order backlog and order intake (BNOK) Distribution of order backlog 19.98 19,98 39% 2022 → 10.52 10.52 9.17 23% 2021 → 32% 2
Slide 22: Order intake distribution
8% 22% MISSILE KAMS SYSTEMS 7% 7% Order intake SPACE & SURVELLIANCE Q1 2020 INTEGRATED DFENCE SYSTEMS distribution 3% 53% AEROSTRUCTURES LAND SYSTEMS Order intake KDA Q1 2020: MNOK 1 769 10% SPACE & Order intake KDA Q1 2019: MNOK 1 137 SURVELLIANCE 24% MISSILE SYSTEMS Q1 2019 9% INTEGRATED DFENCE SY
Slide 23: Double digit revenue, EBITDA and EBIT growth
Double digit revenue, EBITDA and EBIT growth Revenue EBITDA EBIT Revenue (BNOK) EBITDA (BNOK) and EBITDA margin (%) EBIT (BNOK) and EBIT margin (%) 12.4% 12.5% 5.9% 6.5% 1.94 42% 1.37 0.24 0.17 41% 0.13 0.08 56% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 2
Slide 24: Business update
Business update Geir Håøy, President & CEO WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 24
Slide 25: Business update Kongsberg Maritime
BUSINESS UPDATE KONGSBERG MARITIME Hydroid sale and new Strong order intake despite Impact and respond to strategic alliance challenging market COVID-19 • Completed sale of Hydroid Inc. to • Mystic Cruises ~300 MNOK • Ensure safety, liquidity and keep Huntington Ingalls Industries (HII) • Large scop
Slide 26: Business update Kongsberg Defence & Aerospace
BUSINESS UPDATE KONGSBERG DEFENCE & AEROSPACE Call-off on frame work agreements; Strong order • NSM US Navy “Over The Horizon” intake • Crows to US Army • C-UAS to Germany • Norway/Germany submarine cooperation Progression on • NSM Germany ongoing campaigns • Progress on ongoing campaigns despite CO
Slide 27: Business update Kongsberg Digital
Business update Kongsberg Digital MNOK KDI 1.000 Growing revenue and stable order intake 800 Increasing interest for digital 600 products and solutions in light of COVID-19 situation 400 Extensive digital marketing 200 campaigns and webinars 0 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 LTM order intake LTM reven
Slide 28: Outlook – high uncertainty related to COVID-19
Outlook – high uncertainty related to COVID-19 KDA KM KDI Current backlog will continue funds Good order backlog coverage and Increased interest and demand for growth in 2020 significant lifecycle business, KONGSBERG’s digital solutions although expected impacted from Possible delays in certain prog
Slide 29: Q&A
Q&A KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or in pa rt, must include this
Slide 30: Appendix
Appendix KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or in pa rt, must include
Slide 31: Cash, net debt and bond maturity profile
Cash, net debt and bond maturity profile Net debt and cash development Bond maturity profile Cash and net debt (BNOK) Outstanding bonds (BNOK) 10.0 10.4 9.5 5.7 4.5 3.0 3.7 1.5 2.7 2.6 2.3 0.6 0.7 0.3 0.4 1.0 (0.2) 0.5 (1.6) 0.5 (5.7) (6.0) (6.0) 2021 2022 2023 2024 2025 2026 Q1 18 Q2 18 Q3 18 Q4 18