Kongsberg Gruppen Asa · OSL:KOG

Kongsberg Gruppen Asa — Q2 2006 Earnings Presentation

29 slides from Kongsberg Gruppen Asa's earnings presentation, Aug 9, 2006

  1. Slide 1: Q2 2006

    Q2 2006 WORLD CLASS – through people, technology and dedication KONGSBERG August 9, 2006 1

  2. Slide 2: General summary

    General summary ƒ MNOK 1 542 in operating revenues, up 10.1% from Q2 2005 ƒ EBIT MNOK 99 (MNOK 49) ƒ EBIT margin 6.4% (3.5%) ƒ Profit per share NOK 2.03 (NOK 1.14) Defence & Aerospace Offshore & Merchant Marine ƒ Growth in operatin revenues and EBIT ƒ Generally good Q2 compared with Q2 2005 ƒ 9.7 %

  3. Slide 3: Agenda

    Agenda ƒ Financial status at Q2 2006 ƒ The business areas – Status and prospects for the future ƒ Relevant factors ƒ Shares and shareholders ƒ Appendix KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 3

  4. Slide 4: Financial status at Q2 2006: Operating revenues and EBIT

    Financial status at Q2 2006 Operating revenues and EBIT Operating revenues by quarter ƒ Both business areas 1800 1661 20% demonstrated growth in 1600 1428 1401 1542 1428 1448 18% profits and volume compared with 2005 1400 16% 14% 1200 12% ƒ Operating revenues up MNOK 1000 10.4 % 10% 800 8.4 % 141 (+

  5. Slide 5: Financial status at Q2 2006: Cash flow

    Financial status at Q2 2006 Cash flow Net interest-bearing debt - Net interest-bearing debt up MNOK 166 during Q2 1 400 3,0 2006. MNOK 1 200 1164 1101 2,5 - 290 increase since year-end 2005. 1 000 776 795 2,0 - MNOK 228 of the increase is ascribable to payments 800 574 1,5 in connection with corpora

  6. Slide 6: New orders and backlog of orders

    Financial status at mid-year 2006 New orders and backlog of orders Group 6000 5000 4000 3000 1904 2000 1453 1644 1281 1445 1219 1000 0 5 5 5 5 6 6 -0 -0 -0 -0 -0 -0 1 2 3 4 1 2 Q Q Q Q Q Q New orders Backlog of orders ƒNew orders for the Group – MNOK 1 904 in Q2, up MNOK 260 from same quarter last y

  7. Slide 7: Key figures

    Financial status at Q2 2006 Key figures MNOK Q2-06 Q2-05 YTD 2006 YTD 2005 2005 EBIT margin: Group 6.4 % 3.5 % 5.9 % 3.2 % 6.3 % Offshore & Merchant Marine 9.7 % 7.7 % 8.7 % 6.9 % 8.6 % Defence & Aerospace 3.6 % -1.5 % 3.5 % -1.2 % 4.6 % EPS, ongoing operations (NOK) 2.03 0.67 3.74 1.20 7.19 EPS 2.0

  8. Slide 8: Agenda

    Agenda ƒ Financial status at Q2 2006 ƒ The business areas – Status and prospects for the future ƒ Relevant factors ƒ Shares and shareholders ƒ Appendix KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 8

  9. Slide 9: Defence & Aerospace Performance trends

    Defence & Aerospace Performance trends Operating revenues by quarter EBIT by quarter 900 90 800 769 80 686 70 700 664 70 621 614 61 593 600 60 500 50 400 40 300 30 26 22 200 20 100 10 -5 -9 0 0 Q1 Q2 Q3 Q4 -10 Q1 Q2 Q3 Q4 2005 2006 -20 2005 2006 Operating revenues Earnings before tax ƒ MNOK 614 in Q

  10. Slide 10: Defence & Aerospace New orders and backlog of orders

    Defence & Aerospace New orders and backlog of orders Defence & Aerospace 4000 3500 3000 2500 2000 1500 1000 699 769 424 396 375 500 237 0 5 5 5 5 6 6 -0 -0 -0 -0 -0 -0 1 2 3 4 1 2 Q Q Q Q Q Q New orders Backlog ƒ MNOK 769 in new orders in Q2 (MNOK 1 006). Up MNOK 70 from corresponding quarter last y

  11. Slide 11: Defence & Aerospace Defence market Q2 2006

    Defence & Aerospace Defence market Q2 2006 ƒ Signed contracts worth MNOK 426 for remote weapons systems during the quarter – Weapons stations contracts with the U.S. and Canada ƒ Cooperation agreement with Rheinmetall Landsysteme (Germany) ƒ Signed surveillance contracts for MNOK 75 ƒ Acquisition of

  12. Slide 12: Offshore & Merchant Marine Performance trend

    Offshore & Merchant Marine Performance trend Operating revenues by quarter EBIT by quarter 900 865 862 90 84 82 781 790 800 741 80 722 72 700 70 67 61 600 60 500 50 47 400 40 300 30 200 20 100 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2005 2006 Operating revenues Earnings before tax ƒ MNOK 862 in Q2,

  13. Slide 13: Offshore & Merchant Marine New orders and backlog of orders

    Offshore & Merchant Marine New orders and backlog of orders Offshore & Merchant Marine 3000 2500 2000 1500 1173 994 1068 1000 909 857 806 500 0 5 5 5 5 6 6 -0 -0 -0 -0 -0 -0 1 2 3 4 1 2 Q Q Q Q Q Q New orders Backlog ƒ Good influx of new orders in Q2 ƒ MNOK 1 068 in new orders (MNOK 2 241 YTD) ƒ All

  14. Slide 14: Offshore & Merchant Marine: The market for Q2 2006

    Offshore & Merchant Marine The market for Q2 2006 – Continued buoyant activity ƒ Merchant marine market, including LNG, stable at a good level. ƒ New orders for rigs came to MNOK 370 in Q2, and MNOK 770 YTD. Since the rig boom began, KONGSBERG has landed contracts worth a total of MNOK 870 ƒ Acquire

  15. Slide 15: Agenda

    Agenda ƒ Financial status at Q1 2006 ƒ The business areas – Status and prospects for the future ƒ Relevant factors ƒ Shares and shareholders ƒ Appendix KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 15

  16. Slide 16: Downloading of satellite data from both poles

    Downloading of satellite data from both poles ƒ Kongsberg Satellite Services – World leading supplier of satellite based earth observation services – Satellites facilitate meteorological surveys, earth observation, surveillance, research and communication. TrollSat and SvalSat Why satellites in KONG

  17. Slide 17: Fantoft – a new member of the KONGSBERG family

    Fantoft – a new member of the KONGSBERG family ƒ KONGSBERG has acquired Fantoft Process Technologies ƒ The acquisition is in line with KONGSBERG's strategy for placing more emphasis on the international oil and gas industry Products and services Market areas ƒ Fantoft Process Technologies has ƒ Oil

  18. Slide 18: Prospects for the future

    Prospects for the future ƒ KONGSBERG's maritime markets remain very buoyant – Strong offshore charter market, especially for rigs – In the market for merchant vessels, the shipyards are running at very high capacity, which translates into longer than usual delivery times for newbuildings – KONGSBERG

  19. Slide 19: Agenda

    Agenda ƒ Financial status at Q2 2006 ƒ The business areas – Status and prospects for the future ƒ Relevant factors ƒ Shares and shareholders ƒ Appendix KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 19

  20. Slide 20: Ownership structure

    Ownership structure 20 largest shareholders (at 7 August 2006) Distribution of shareholders Shareholders # aksjer Andel ∆ 2006 Norwegian 1 Norw. State/Ministry of Trade and Indus 15 000 400 50,00 % - state 2 National Insurance Fund 2 722 060 9,07 % 0,18 % 50% 3 Arendals Fossekompani ASA 2 055 822 6,

  21. Slide 21: Share price and liquidity

    Share price and liquidity Share price performance from 1 Jan. 2006 Liquidity trend from 1 Jan. 2006 KOG relative to indexes 1 Jan. 2006 Index1) Spread Shares KOG spread and trading from 1 Jan. 2005 160.0 3.00% 700 150.0 2.50% 600 2.00% 500 400 140.0 1.50% 300 1.00% 200 130.0 0.50% 100 0.00% 0 120.0

  22. Slide 22: Agenda

    Agenda ƒ Financial status at Q2 2006 ƒ The business areas – Status and prospects for the future ƒ Relevant factors ƒ Shares and shareholders ƒ Appendix KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 22

  23. Slide 23: Income statement

    Financial status at Q2 2006 Income statement YTD YTD MNOK Q2 06 Q2 05 2005 2006 2005 Operating revenues 1 542 1 401 3 203 2 829 5 705 Operating expenses (1 409) (1 314) (2 941) (2 658) (5 189) Earnings before interest, taxes, depreciation and amortisation 133 87 262 171 516 (EBITDA) Depreciation (34

  24. Slide 24: Balance sheet

    Financial status at Q2 2006 Balance sheet 30 June 06 31 Dec. 05 30 June 05 MNOK IFRS IFRS IFRS Tangible fixed assets 936 924 1 004 Intangible assets 1 327 1 127 1 251 Other long-term assets 350 325 238 Total long-term assets 2 613 2 376 2 493 Short-term assets 3 662 3 444 3 671 Liquid assets 431 723

  25. Slide 25: Historical development of operating revenues and EBIT

    Historical development of operating revenues and EBIT Operating revenues2) EBIT1)2) MNOK MNOK 8 000 600 6980 7 000 6651 485 6176 500 5814 5705 437 6 000 5296 400 383 360 5 000 4404 4412 278 287 4 000 3674 300 249 3023 221 3 000 192 200 173 2 000 100 1 000 0 0 96 97 98 99 00 01 02 03 04 05 96 97 98 9

  26. Slide 26: Currency hedges at 30 June 2006

    Currency hedges at 30 June 2006 Hedging of orders Ordresikring 1289 MNOK Mill NOK 1400 1200 1073 1000 670 799 Signed Inngåtte orders ordre 800 600 Anticipated orders Forventede ordre 400 200 0 2006 (annet halvår) 2007 --> Risk Hedging ƒ Significant foreign currency exposure – more ƒ All signed order

  27. Slide 27: Board of Directors of Kongsberg Gruppen ASA

    Board of Directors of Kongsberg Gruppen ASA Finn Jebsen(56), Chair of the Board Siri Hatlen (48), Director ƒ Self-employed ƒ Self-employed ƒ CEO of Orkla from 2001 to 2005 ƒ A number of directorships: Chair of the Board of ƒ Member of Orkla's corporate management since 1984 Health East, SIFA SF, Sta

  28. Slide 28: Financial Calendar and Investor Relations contacts

    Financial Calendar and Investor Relations contacts Financial Calendar 2006 IR contacts Capital Markets Day Arne Solberg ƒ 21 September CFO Telephone: +47 32 28 95 75 Announcement of E-mail: arne.solberg@kongsberg.com quarterly performance figures Jan Erik Hoff ƒ Q3: 23 October Investor Relations Man

  29. Slide 29: WORLD CLASS – through people, technology and dedication

    WORLD CLASS – through people, technology and dedication KONGSBERG August 9, 2006 29

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