Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Investor Day (September 2019)
30 slides from Kongsberg Gruppen Asa's investor day presentation, Sep 24, 2019
Slide 1: Kongsberg Maritime
KONGSBERG MARITIME 24/09/2019 Egil Haugsdal President Kongsberg Maritime 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.
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 Takeaways
KEY TAKEAWAYS We will generate We adapt to changing We are a frontrunner on shareholder value markets sustainable technology through the Commercial development Marine acquisition WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information
Slide 4: Kongsberg Maritime
KONGSBERG MARITIME Systems on Employees BNOK 17+ 117 offices in Experience 30,000+ vessels 7,300+ people Revenues 34 countries 80+ years 4
Slide 5: Business units
KONGSBERG MARITIME Business units INTEGRATED SOLUTIONS GLOBAL CUSTOMER SUPPORT PROPULSION & ENGINES SYSTEMS & DECK MACHINERY SENSORS & ROBOTICS WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 5
Slide 6: The Autonomy of Depth Global No. 1
THE AUTONOMY OF DEPTH GLOBAL NO. 1 FURTHER GROWTH OPPORTUNITIES ▪ US NAVY UNDERWATER ▪ EUROPE UNDERWATER ‐ CIVIL AND DEFENCE WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 6
Slide 7: We are used to navigating in cyclical markets
WE ARE USED TO NAVIGATING IN CYCLICAL MARKETS 14 000 16% 12 000 14% 12% 10 000 10% 8 000 LTM Order Intake 8,2 % MNOK 8% LTM Revenues 6 000 6,5 % LTM EBITDA % 6% LTM Underlying EBITDA % 4 000 4% 2 000 2% 0 0% WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statemen
Slide 8: Agenda
AGENDA 1. A FRONTRUNNER ON SUSTAINABLE TECHNOLOGY DEVELOPMENT 2. A BRIEF OVERVIEW OF OUR MARKETS 3. ROADMAP 4. KM + CM ➔ A PERFECT FIT WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 8
Slide 9: My Garage!
MY GARAGE! WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 9
Slide 10: Our technology development drives growth
OUR TECHNOLOGY DEVELOPEMENT DRIVES GROWTH WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 10
Slide 11: KM is a technology company
KM IS A TECHNOLOGY COMPANY WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 11
Slide 12: The ocean industry is changing
THE OCEAN INDUSTRY IS CHANGING SUSTAINABILITY DIGITALIZATION WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 12
Slide 13: The drive for sustainable development
THE DRIVE FOR SUSTAINABLE DEVELOPMENT ENVIRONMENTAL ENERGY USAGE IMO 2020 AWARENES AND INTELLIGENCE WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 13
Slide 14: Life cycle emissions
LIFE CYCLE EMISSIONS Well to wake – GHG emissions CO2eq emissions [g/MJ] HFO MGO For zero emission TTW LSFO LNG (imported) solutions it is crucial to LNG (local) choose the correct LPG source of electricity MeOH (from CH4) MeOH (from black liquor) NH3 (from CH4) Biodiesel Bio-LNG (from waste) Bio-LN
Slide 15: Marine fuels
MARINE FUELS Today and in a near future WORLD WORLDCLASS CLASS––Through Throughpeople, people,technology technologyand anddedication dedication KONGSBERG KONGSBERG PROPRIETARY - See Statement of Proprietary information information 15
Slide 16: Working with Kongsberg
WORKING WITH KONGSBERG Market leader within automation and control systems Extensive industry experience delivering Information Management Solutions Open digital ecosystem with a broad range of 3rd party services 24/7 support and a global service network of maritime experts WORLD CLASS – Through peo
Slide 17: Agenda
AGENDA 1. A FRONTRUNNER ON SUSTAINABLE TECHNOLOGY DEVELOPMENT 2. A BRIEF OVERVIEW OF OUR MARKETS 3. ROADMAP 4. KM + CM ➔ A PERFECT FIT WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 17
Slide 18: The market: growth 2005-2014, drop 2015-2019
THE MARKET: GROWTH 2005-2014, DROP 2015-2019 TOTAL FLEET DEVELOPMENT # of vessels by contract year by delivery year 25 000 120 000 Cargo Carrier Cargo Carrier Tugs and Workboats Tugs and Workboats Cruise and Passenger Cruise and Passenger 100 000 20 000 Supply and Service Supply and Service Explorat
Slide 19: Combined installed base
COMBINED INSTALLED BASE OF OVER 30 000 Combined installed base of over 30 000 vessels VESSELS ACROSS RELEVANT MARKET SEGMENTS KM installed base across relevant market Shared installed base segments CM installed base > 20 000 ~ 10 000 > 20 000 Total combined installed base1) > 30 000 Shared base mark
Slide 20: Merchant market
MARKET DRIVERS Seaborn Trade Dry Bulk Index IMO 2020 MERCHANT MARKET SCRAPPING IMO 2020 NEWBUILD MARKET Estimated TOTAL MARKET AFTERMARKET 45 000 WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 20
Slide 21: Offshore market
MARKET DRIVERS Oil Price SCRAPPING Expl. Activity Day Rates OFFSHORE MARKET COLD/WARM STACKED NEWBUILD MARKET Estimated AFTER MARKET TOTAL NO. VESSELS REACTIVATION 10 000 WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 21
Slide 22: Agenda
AGENDA 1. A FRONTRUNNER ON SUSTAINABLE TECHNOLOGY DEVELOPMENT 2. A BRIEF OVERVIEW OF OUR MARKETS 3. ROADMAP 4. KM + CM ➔ A PERFECT FIT WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 22
Slide 23: KM roadmap going forward
KM ROADMAP GOING FORWARD Best long term strategy is to secure short term profitability 3 2 The Leading Global Supplier 1 of Maritime Technology, Exploit benefits of joining shaping the maritime forces, customer value future. Deliver on target, through total product turn around portfolio and technolo
Slide 24: Agenda
AGENDA 1. A FRONTRUNNER ON SUSTAINABLE TECHNOLOGY DEVELOPMENT 2. A BRIEF OVERVIEW OF OUR MARKETS 3. ROADMAP 4. KM + CM ➔ A PERFECT FIT WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 24
Slide 25: Integration on track! KM + RRCM = a global leader
KM + RRCM = A GLOBAL LEADER – FROM BRIDGE TO PROPELLER ▪ A broad range of complementary World Class maritime products Two highly complementary ▪ Allowing for seamlessly integrated solutions throughout the vessel companies A world class combined global CM «CAF/ACON» INTEGRATION ON TRACK! AUTOMATION K
Slide 26: Value capture
VALUE CAPTURE Broad range of measures initiated since Closing Footprint & delivery streamlining SG&A savings and synergies Product portfolio optimization Activities: • Restructuring of the loss-making Deck • Leverage scale within sales, support and • Joint plan for digital marine Machinery and Ship
Slide 27: Value capture
VALUE CAPTURE Program progressing according to plan, additional measures identified Status on program execution Additional measures Realized savings YTD August of ~130 MNOK, well on track • Continuous work to identify and initiate additional for ~200 MNOK effect realization for 2019 FY measures Proc
Slide 28: Integration on plan
INTEGRATION ON PLAN ▪ Strong order intake despite challenging markets ▪ CM delivered in Q2 EBITDA MNOK 22, excl. integration and restructuring ▪ Synergy and cost programs on plan ▪ Deck Machinery and Ship Design challenging, restructuring program initiated ▪ Product portfolio harmonization ▪ Creatin
Slide 29: Maritime industry is changing, we are going to lead the change
MARITIME INDUSTRY IS CHANGING, WE ARE GOING TO LEAD THE CHANGE WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 29
Slide 30: Kongsberg Proprietary - See Statement of Proprietary information
KONGSBERG PROPRIETARY - See Statement of Proprietary information