Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q3 2013 Earnings Presentation
41 slides from Kongsberg Gruppen Asa's earnings presentation, Nov 7, 2013
Slide 1: Investor presentation 3rd Quarter 2013
Investor presentation 3rd Quarter 2013 7th November 2013
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: Agenda
Agenda • Financial status Q3 2013 • Status - Business Areas • Updates • Appendix Speakers: • Walter Qvam – CEO • Hans-Jørgen Wibstad – CFO /3/ 7-November-13 WORLD CLASS – through people, technology and dedication © 2013 KONGSBERG – All rights reserved.
Slide 4: Highlights
Highlights • Solid quarter with an EBITDA of MNOK 518 • Continued revenue growth in Kongsberg Maritime with 11.4% YTD compared with YTD 2012 • Decline in Kongsberg Protech Systems as expected • Kongsberg Defence Systems between contract phases in JSM-project • Kongsberg Oil & Gas Technologies with i
Slide 5: Financial status 2013 - Operating revenues
Financial status 2013 Operating revenues 4 500 4 000 • Revenues down 6.2% from Q3 3 500 2012 3 000 • Lower revenues this quarter due 2 500 to 2 000 1 500 – Periodic variances in KM 1 000 – KDS between two JSM 500 contract phases 0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 – K
Slide 6: Year-to-date operating revenues per business area
Financial status 2013 Year-to-date operating revenues per business area KOGT 772 • Strong 11.4 % growth YTD in Kongsberg KPS Maritime 1 784 • Success within high-end offshore YTD Q3 KM 2013 • 48.7 % increase in Kongsberg Oil and Gas KDS 6 063 Technologies 2 935 • Revenues from acquired companies • S
Slide 7: Financial status 2013 - EBITDA
Financial status 2013 EBITDA 700 600 • Q3 EBITDA MNOK 518 (MNOK 646) 500 400 • Q3 EBITDA margin 15.0% (17.6%) 300 200 • YTD Q3 EBITDA MNOK 1.531, down 100 from MNOK 1.721 YTD Q3 2012 0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 – Higher YTD EBITDA in Kongsberg 2 000 Maritime 1
Slide 8: Year-to-date EBITDA per business area
Financial status 2013 Year-to-date EBITDA per business area KOGT 24 KPS • 11% increase EBITDA in Kongsberg 329 Maritime YTD Q3 KDS KM 2013 • Joint Strike Missile project between two 302 887 contract-phases gives temporarily negative impact on revenues and EBITDA • Decrease in deliveries to US Army n
Slide 9: Financial status Q3 2013 - Orders and backlog
Financial status Q3 2013 Quarterly trends in orders Backlog of orders 20 000 18 000 29% 16 000 14 000 12 000 48% 10 000 8 000 6 000 23% 4 000 2 000 2013 2014 2015=> 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 Backlog of orders Q3- 2013 New orders per quarter KOGT 4 500 855 4 000 3 500 3 000
Slide 10: Cash Flow
Financial status Q3 2013 Cash Flow Q3-13 Q3-12 YTD YTD 2012 Q3-13 Q3-12 EBITDA 518 646 1,531 1,721 2,294 Change in other operating related items (697) (417) (614) (2,398) (2,087) Cash flow from operating activities (179) 229 917 (677) 207 Acquisition of fixed assets (60) (124) (225) (358) (523) Acqu
Slide 11: Cash Flow and liquidity
Financial status Q3 2013 Cash Flow Q3 2013 YTD Q3 2013 3600 4500 3300 4200 3900 3000 614 518 697 3600 2700 3300 1 531 2400 3000 595 73 2 2700 2100 455 2400 1800 2100 1500 2 376 1800 2 630 2 376 1200 1500 900 1200 2 509 900 600 600 300 300 0 0 Cash IB EBITDA Q3 Change in Investments Net changes Cash
Slide 12: Summary key figures
Summary key figures Q3 2013 Q3 2012 YTD Q3 YTD Q3 2012 2013 2012 3,448 3,675 11,578 11,443 15,652 Operating revenues 518 646 1,531 1,721 2,294 EBITDA 15.0% 17.6% 13.2% 15.0% 14.7% EBITDA margin 405 536 1,187 1,398 1,840 EBIT 408 529 1,179 1,386 1,809 EBT 2.44 3.22 7.10 8.42 10.91 EPS Equity % - - 37
Slide 13: Kongsberg Maritime Status
Kongsberg Maritime Status
Slide 14: Kongsberg Maritime Q3 2013 - Revenues and EBITDA
Kongsberg Maritime Q3 2013 Quarterly trends in operating revenues and EBITDA Operating revenues Revenues YTD Q3-13 2 500 2 000 1 500 Subsea 25% 1 000 Merchant 500 12% Offshore 63% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 EBITDA 350 Revenues YTD Q3-12 300 250 200 Subsea 23% 150 100 Mercha
Slide 15: Kongsberg Maritime Q3 2013 - Orders
Kongsberg Maritime Q3 2013 Quarterly trends in orders Backlog of orders 8 000 7 000 27% 6 000 5 000 50% 4 000 3 000 2 000 23% 1 000 2013 2014 2015=> 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders per quarter New orders YTD 2013 3 000 2 500 Subsea 2 000 23% 1 500 1 000 500 Merchant 1
Slide 16: Highlights Kongsberg Maritime
Highlights Kongsberg Maritime • Strong order backlog at MNOK 7,125 – Book/Bill ratio at 0.91 in Q3 and 1.13 YTD • Continued strong position in the advanced offshore segment. – Several «Full Picture» contracts for deliveries to high-end offshore drilling vessels • Strong activity within subsea – Subs
Slide 17: Order intake for Full Picture deliveries continues in Q4
Order intake for ”Full Picture” deliveries continues in Q4 • 15 units with «Full picture» deliveries announced in October • Nine advanced Offshore drilling units • Two Drilling Jackup at Samsung Heavy Industries • New and growing market in Korea • One accommodation unit with DP 3 • One Multipurpose
Slide 18: Kongsberg Defence Systems Status
Kongsberg Defence Systems Status
Slide 19: Kongsberg Defence Systems Q3 2013 - Revenues and EBITDA
Kongsberg Defence Systems Q3 2013 Quarterly trends in operating revenues and EBITDA Revenues YTD Q3-13 Operating revenues 1 400 Comm. 8% 1 200 Missile 1 000 25% 800 Intergrat 600 ed Def 32% Aerost 400 11% 200 Naval sys 0 24% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 Revenues YTD Q3-12 EBITD
Slide 20: Kongsberg Defence Systems Q3 2013 - Orders
Kongsberg Defence Systems Q3 2013 Quarterly trends in orders Backlog of orders 9 000 8 000 7 000 34% 6 000 5 000 4 000 46% 3 000 2 000 20% 1 000 2013 2014 2015=> 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders YTD 2013 New orders per quarter Comm 7% 2 000 1 800 1 600 1 400 Integrated
Slide 21: Highlights Kongsberg Defence Systems
Highlights Kongsberg Defence Systems • Strong level of activity both in development, delivery and sales – JSM development on track – All major delivery programs on track • Coastal artillery to Poland • NASAMS to Finland • NSM to Norway – Several prospect within KDS’ markets to be concluded within a
Slide 22: Joint Strike Missile
Joint Strike Missile Development on track • Development project between two contract- phases – Temporarily negative impact on both revenues and EBITDA – Negotiations for phase III development contract continues • The JSM project – More than 200 employees is working on the project – All parts of the
Slide 23: Kongsberg Protech Systems Status
Kongsberg Protech Systems Status
Slide 24: Kongsberg Protech Systems Q3 2013 - Revenues and EBITDA
Kongsberg Protech Systems Q3 2013 Quarterly trends in operating revenues and EBITDA Operating revenues 1 200 1 000 800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 EBITDA 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 / 24 / 7-November-13 WORLD CLASS
Slide 25: Kongsberg Protech Systems Q3 2013 - Orders
Kongsberg Protech Systems Q3 2013 Quarterly trends in orders Backlog of orders 6 000 5 000 26% 4 000 3 000 46% 2 000 1 000 28% 0 2013 2014 2015=> Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders per quarter 1 400 1 200 1 000 800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 201
Slide 26: Highlights Kongsberg Protech Systems
Highlights Kongsberg Protech Systems • Continued high activity in market campaigns – Medium Calibre RWS (MCRWS) • Continued positive feedback both from US Army and other potential clients – Several ongoing campaigns for PROTECTOR RWS both in existing and new markets • Market is currently slow and de
Slide 27: Kongsberg Oil & Gas Technologies Status
Kongsberg Oil & Gas Technologies Status
Slide 28: Kongsberg Oil & Gas Technologies Q3 2013 - Revenues and EBITDA
Kongsberg Oil & Gas Technologies Q3 2013 Quarterly trends in operating revenues and EBITDA Operating revenues 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 EBITDA 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -10 -20 2011 2012 2013 / 28 / 7-November-13 WORLD CLAS
Slide 29: Kongsberg Oil & Gas Technologies Q3 2013 - Orders
Kongsberg Oil & Gas Technologies Q3 2013 Quarterly trends in orders Backlog of orders 900 800 26% 700 600 41% 500 400 300 33% 200 100 2013 2014 2015=> 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders per quarter 700 600 500 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 20
Slide 30: Highlights Kongsberg Oil & Gas Technologies
Highlights Kongsberg Oil & Gas Technologies • Strong order intake in Q3 – Book/ Bill ratio at 2.36 in Q3 and 1.55 YTD • Order backlog increased 70 per cent in Q3 • Subsea division wins break-through contract with Statoil • Delivery of subsea structures to Polarled gas pipeline with Statoil • Commerc
Slide 31: Capital Markets Day 2013
Capital Markets Day 2013 • Kongsberg, 7th November 2013 • Presentations on recent developments, market conditions and outlook • Presentations of conclusions from strategic growth reviews and review of capital issues • Presentations from CEO, CFO and all business area Presidents • Presentations and d
Slide 32: Outlook
Outlook Excerpts – read the quarterly report for the full text KONGSBERG has strong positions in the maritime, offshore and defence markets in addition to an exciting positioning towards the oil & gas market. The foundation for the operations in Q4 2013 is solid – Kongsberg Maritime is expected to m
Slide 33: Appendix
Appendix
Slide 34: Determined, Innovative, Collaborative, Reliable
DETERMINED INNOVATIVE COLLABORATIVE RELIABLE What we start we finish. We relentlessly pursue We collaborate as individuals and We are reliable people. We do not give in. improvements, new ideas as an organisation. We are responsible citizens. and new solutions. / 34 / 7-November-13 WORLD CLASS – thr
Slide 35: Solutions from deep sea to outer space
Solutions from deep sea to outer space - Extreme performance for extreme conditions KONGSBERG is a world leading supplier of high-technology solutions and advanced applications for the Maritime, Oil & Gas, Defence and Space industry. Our solutions creates safety and performance for people and compan
Slide 36: Financial status at 30 September 2013 - Income statement
Financial status at 30 September 2013 Income statement MNOK. Q3-13 Q3-12 YTD Q3-13 YTD Q3-12 2012 Operating revenues 3 448 3 675 11 578 11 443 15 652 Operating expenses (2 930) (3 029) (10 047) (9 722) (13 358) Earnings before interest, tax, depreciation and amortisation 518 646 1 531 1 721 2 294 (E
Slide 37: Financial status at 30 September 2013 - Balance sheet
Financial status at 30 September 2013 Balance sheet MNOK 30 Sept.13 30 Jun.13 31 Dec.12 Property, plant and equipment 2 622 2 640 2 602 Intangible assets 3 117 3 133 2 750 Other non-current assets 288 288 280 Total non-current assets 6 027 6 061 5 632 Short-term assets 8 405 8 381 8 133 Cash and sho
Slide 38: Shares and shareholders
Shares and shareholders 20 largest shareholders (24 October 2013) Share price performance Shareholders # shares Stake 1 State repr. by the Ministry of Trade and Industry 60 001 600 50.00% - Index1) KOG compared with OSEBX last 12 months 2 Arendals Fossekompani 9 552 796 7.96% - 140,0
Slide 39: Currency
Currency Hedging portfolio at 30 September 2013 (values in MNOK) Hedging portfolio 6 000 5 000 Orders: All orders signed in foreign currencies are 4 000 hedged, eliminating currency risk 3 000 2 000 Prognosis: Prior to signature, probable contracts are also hedged pursuant to the guidelines stip
Slide 40: Financial calendar and Investor Relations contacts
Financial calendar and Investor Relations contacts Financial calendar 2013 IR contacts Hans-Jørgen Wibstad Publication of quarterly figures CFO Telephone: +47 32 28 39 90 E-mail: hans.jorgen.wibstad@kongsberg.com Capital Markets Day 2013 • 07 November Jan Erik Hoff VP Investor Relations and Reportin
Slide 41: kongsberg.com
kongsberg.com KONGSBERG