Kongsberg Gruppen Asa · OSL:KOG

Kongsberg Gruppen Asa — Investor Day (2016)

31 slides from Kongsberg Gruppen Asa's investor day presentation, 2016

Slide 1: Kongsberg Defence Systems
KONGSBERG DEFENCE SYSTEMS Harald Aarø EVP Group Business Development Photo: Forsvaret
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 4: Kongsberg Defence Systems
29 offices in 17 countries 1,823 employees Revenues LTM 4.2 BNOK Order backlog 8.1 BNOK KONGSBERG International success Integrated Defence in selected niches DEFENCE SYSTEMS Systems Missile Systems Space & Surveillance Aerostructures Defence Communication Patria A modern portfolio positioned for fur
Slide 5: Stable activity level last few years
STABLE ACTIVITY LEVEL LAST FEW YEARS VERY STRONG MARGINS IN 2015 AND 2016* REVENUES EBITDA 811 4 446 4 313 4 276 4 149 4 225 695 520 530 478 10,3% 11,4% 12,4% 16,8% 19,2% 2012 2013 2014 2015 2016* 2012 2013 2014 2015 2016* Revenues 2012 and 2013 adjusted for KSAT © 2016 KONGSBERG – All rights reserv
Slide 6: Strong order backlog – good visibility
STRONG ORDER BACKLOG – GOOD VISIBILITY MIXED PICTURE WITHIN THE BUSINESS AREA BACKLOG 30% Space & Surv. 25% 9 471 IDS 8 622 20% Space & Surv. IDS 8 124 Def. Comm. Aerostructures Def. Comm. 15% 6 817 Space & Surv. Aerostructures Aerostructures Missiles Def. Comm. 10% Missiles 5 489 Missiles IDS 5% 0%
Slide 8: Kongsberg's 49.9% ownership in Patria
KONGSBERG’S 49.9% OWNERSHIP IN PATRIA SEALS A UNIQUE AND REAL CROSS BORDER PARTNERSHIP THE NORW. STATE 50.001% 50.0% • Consolidation with national control • Supported by national governments • Interests of the stakeholders of the three companies are aligned 49.9% 50.0% • Fully business driven transa
Slide 9: A world-leading export level at 65%
STRONG INDIVIDUAL COMPANIES FORMING A PARTNERSHIP WORLD-CLASS PROVIDER OF: KEY MARKETS: • Air defence • Naval combat systems • Nordic • Remote weapon • Tactical • USA A WORLD-LEADING EXPORT LEVEL AT 65 % stations communication • Poland • Strike missiles • F-35 aerostructures • GCC • Armored vehicles
Slide 11: Upgrade contract ULA class
Contract value 220 MNOK UPGRADE CONTRACT ULA CLASS This upgrade program extends the lifetime of the ULA class submarines until the Next Generation Submarines are introduced. © 2016 KONGSBERG – All rights reserved.
Slide 12: Successful joint Norwegian-Polish NSM firex
SUCCESSFUL JOINT NORWEGIAN-POLISH NSM FIREX • Two successful firings from the Polish coastal defence system – demonstrating that NSM is in operation in Poland • Three highly advanced firings from Norwegian navy vessels, including demonstration of land target capability • Demonstrating the unique cap
Slide 13: NSM US campaign
NSM US CAMPAIGN • Continue to build on the partnership with Raytheon to position NSM for the LCS/FF in the US • Establishing US production line for NSM • Increasing US footprint with “Made in America” © 2016 KONGSBERG – All rights reserved.
Slide 19: Ninox – remote tower system
NINOX – REMOTE TOWER SYSTEM 360° PANORAMA VIEW (1 ROTATION) • Airport 1 of 15 (“Røst”) – installation mid 2017 • Demo set-up at OSL (large airport) • Focusing on possibilities on specific airports in US & Europe SENSOR PROTOTYPE #1 © 2016 KONGSBERG – All rights reserved.
Slide 21: Modest growth in global defence market
MODEST GROWTH IN GLOBAL DEFENCE MARKET -4% +2% 374 350 354 356 340 340 340 RoW 21% 321 320 320 +11% 24% 25% 27% 28% 29% 31% 28% 29% 27% +5% EUR/USA 79% 76% 73% 75% 73% 72% 71% 69% 72% 71% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 © 2016 KONGSBERG – All rights reserved. Source: Jane’s Defence
Slide 22: Increasing global focus on defense
INCREASING GLOBAL FOCUS ON DEFENSE MINIMUM ACCEPTANCE FOR ADVANCED COUNTRIES WITH LOSSES OF OWN FORCES NEW HIGH INTENSITY THREATS PREDATOR MORE A2/AD, AIR-SEA BATTLE EUROPE’S MIGRATION CRISIS CHALLENGES NEED FOR FULL-SCALE CAPABILITIES MAINTAIN COUNTER-INSURGENCY MORE C4ISR, SPACE CAPABILITIES AND C
Slide 23: The defence customers need a new dynamic
THE DEFENCE CUSTOMERS NEED A NEW DYNAMIC UNSUSTAINABLE COST SPIRAL DECLINING ARMED FORCES GLOBAL SECURITY CHALLENGES Source: GAO reports, MOD research papers ("Intergenerational Equipment Cost Escalation"), BCG analysis # of warships cut in more than half last 40 years by US, Russia and UK © 2016 KO
Slide 24: European defence industry needs to restructure and consolidate
EUROPEAN DEFENCE INDUSTRY NEEDS TO RESTRUCTURE AND CONSOLIDATE • US defence procurement budget 2.5 times bigger than European EUROPE IS • Yet Europe has 3.5 times more defence systems FRAGMENTED • Hence, US industry has 9 times the $-value behind each system DECLINING • US spends 7 times more on R&D
Slide 25: It has begun
IT HAS BEGUN EUROPEAN EUROPEAN DEFENCE COUNTRIES JOIN INDUSTRY FORCES CONSOLIDATING Source: The Netherlands EU Presidency 2016 website (english.eu2016.nl) © 2016 KONGSBERG – All rights reserved.
Slide 26: New Norwegian submarines
NEW NORWEGIAN SUBMARINES KONGSBERG SEEKS A LONG TERM DOWNSELECTED SUPPLIERS: INDUSTRIAL SOLUTION: • Long term co-operation on Combat Systems • Co-operation on missiles • Develop new weapons POTENTIAL CO-OPERATING NATIONS: • Poland • Netherlands • Germany © 2016 KONGSBERG – All rights reserved.
Slide 27: Promising opportunities vs. the long term plan in Norway
PROMISING OPPORTUNITIES VS. THE LONG TERM PLAN IN NORWAY • F-35 • NASAMS and Long Range Air Defence • New Submarines • Coast Guard Vessels • Mine Counter Measures Early • Air Surveillance Radars warning/intelligence, command and • Maritime Reconnaissance Aircraft control, firepower, • Support, maint
Slide 30: Key takeaways
KEY TAKEAWAYS • Increased EBITDA-margin • Ownership in Patria • F-35 ramp-up with additional scope • Increased helicopter maintenance • Current naval contracts bridge to Next Submarine program in Norway • Well positioned for air defence and missile contracts next 12 months • JSM follow plan for inte
Slide 31: Photo: Forsvaret
Photo: Forsvaret

Kongsberg Gruppen — Investor Day (2016) on 6ix

Kongsberg Gruppen Asa — Investor Day (2016)

Slide 1: Kongsberg Defence Systems

Slide 2: Disclaimer

Slide 3: Agenda

Slide 4: Kongsberg Defence Systems

Slide 5: Stable activity level last few years

Slide 6: Strong order backlog – good visibility

Slide 7: Agenda

Slide 8: Kongsberg's 49.9% ownership in Patria

Slide 9: A world-leading export level at 65%

Slide 10: Agenda

Slide 11: Upgrade contract ULA class

Slide 12: Successful joint Norwegian-Polish NSM firex

Slide 13: NSM US campaign

Slide 14: JSM flight test program

Slide 15: Added F-35 scope in contract

Slide 16: F-35 – ramping to peak production rate

Slide 17: © 2016 KONGSBERG – All rights reserved.

Slide 18: Expanding maintenance and sustainment activities

Slide 19: Ninox – remote tower system

Slide 20: Agenda

Slide 21: Modest growth in global defence market

Slide 22: Increasing global focus on defense

Slide 23: The defence customers need a new dynamic

Slide 24: European defence industry needs to restructure and consolidate

Slide 25: It has begun

Slide 26: New Norwegian submarines

Slide 27: Promising opportunities vs. the long term plan in Norway

Slide 28: Opportunities ahead

Slide 29: Agenda

Slide 30: Key takeaways

Slide 31: Photo: Forsvaret