Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q2 2018 Earnings Presentation
24 slides from Kongsberg Gruppen Asa's earnings presentation, Aug 24, 2018
Slide 1: Investor Presentation 2nd quarter 2018
INVESTOR PRESENTATION 2nd quarter 2018 24/08/2018 Geir Håøy, President & CEO Gyrid Skalleberg Ingerø, 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
Slide 2: Highlights Q2
Highlights Q2 3 525 5 299 REVENUES NEW ORDERS Positive trend in key KM KPI’s: Book/bill 1.1, global customer support and Subsea. Solid margins and good order intake Q2 in KDA, lower revenues R&D investments in KDI, continued 2018 volume challenges within Maritime Simulations MNOK 129 costs related t
Slide 3: Financial Status
Financial Status WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 3
Slide 4: H1 2018 Solid order intake, both in KM and KDA
REVENUES EBITDA H1 2018 7 079 MNOK 527 MNOK Solid order intake, both in KM and KDA KM MNOK 3 706 (3 737) KM MNOK 249 (200) KDA MNOK 3 026 (3 369) KDA MNOK 372 (330) Increased profitability H1 Somewhat lower revenues EBITDA-margin 2018 NEW ORDERS 7.4 % 8 238 MNOK KM 6.7 % (5.4 %) KM MNOK 4 007 (3 973
Slide 5: Revenues Q2
4 125 3 733 3 525 REVENUES Q2 Q2 revenues down 5.6 % KM revenues down 3.0 % YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2017 2018 KDA revenues down 9.4 % YoY KDA KM 1 441 1 910 Other 174 WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary infor
Slide 6: EBITDA Q2
515 Q2 2018 EBITDA Q2 MARGIN Two special items 6,8% 207 241 ‐ MNOK 79 incurred M&A costs Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ‐ MNOK 50 excess costs 2016 2017 2018 related to on specific KM- project KDA Underlying margin improvement in KM KM Continued solid margin in KDA 115 6.0 % MARGIN 200 Other -7
Slide 7: New Orders Q2
5299 Q2 2018 ORDER BACKLOG 3491 NEW ORDERS Q2 16 419 2535 KM Book/bill 1.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Continued good ordering 2016 2017 2018 from the traditional merchant segments, and within marine KDA robotics and fishery KM Strong KDA order-intake, especially within missiles 2 107 3 045
Slide 8: Q2 New orders by Division: Kongsberg Defence & Aerospace
Q2 69% MISSILE SYSTEMS New orders by Division Kongsberg Defence & Aerospace 9% OTHER* 10% 12% AERO- DEFENCE STRUC- COMMUNI- TURES CATIONS *Other includes Integrated Defence Systems, Protech Systems and Space & Surveillance WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY
Slide 9: Q2 New orders by Division: Kongsberg Maritime
23% 18% VESSEL SYSTEMS SOLUTIONS Q2 New orders by Division Kongsberg Maritime 24% GLOBAL CUSTOMER SUPPORT* 35% SUBSEA** *GCS does not include Subsea aftermarket ** Subsea also includes Subsea aftermarket WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of
Slide 10: Strong balance sheet
Strong balance sheet Q2 2018 Q1 2018 2017 Gross interest bearing debt 3 337 3 340 3 340 Cash and short-term deposits 2 630 2 739 2 956 Net interest bearing debt 707 601 384 Equity ratio 35.1 % 35.9 % 35.6 % ROACE 9.4 % 8.8 % 9.1 % WORLD CLASS – Through people, technology and dedication KONGSBERG PRO
Slide 11: Debt position
Debt position Healthy maturity profile NET INTEREST BEARING DEBT DEBT MATURITY PROFILE 1 000 1 000 2667 1642 550 450 707 250 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016 2017 2018 WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See S
Slide 12: Business Update
Business Update WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information
Slide 13: Business Update Kongsberg Maritime
Business Update Kongsberg Maritime Orders from traditional merchant such KM as bulk, container and LNG-vessels improving Positive order Lower volume of orders from larger intake, stable integrated solutions, growing number revenues and of prospects improved Signed contract for Johan Sverdrup u
Slide 14: Leading the way towards autonomous seaborne operations
Leading the way towards autonomous seaborne operations WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 14
Slide 15: Business Update Kongsberg Defence & Aerospace
Business Update Kongsberg Defence & Aerospace Several important wins within KDA missile area - Malaysia Solid margins - Over The Horizon and strategically - JSM test missiles important contracts MNOK 525 order for parts to F-35 secured Negotiations in Qatar WORLD CLASS – Through people, techno
Slide 16: Selected ongoing campaigns
Selected ongoing campaigns More potential in Qatar Major vehicle program in Qatar Air defence program – NASAMS to Qatar Program announced 13 March 2018 Raytheon has announced MoU for a major NASAMS system KONGSBERG selected to supply medium calibre turrets, remote weapon stations and other ess
Slide 17: Naval Strike Missile
Naval Strike Missile Important milestones and contracts signed in Q2 Significant milestone reached – NSM selected by U.S. Navy for its over-the-horizon program EUR 124 million contract for NSM missiles to the Royal Malaysian Navy. Following contract for ship equipment signed 2015 MNOK 220 cont
Slide 18: Joint Strike Missile
Joint Strike Missile Final test passed JSM is the only fifth gen. strike missile with advanced capabilities, compatible with the bay of the F-35. Considerable international interest Important milestone reached with the JSM passing its last planned test of the missile qualification program – deve
Slide 19: Business Update Kongsberg Digital, Patria, Space
Business Update Kongsberg Digital, Patria, Space KDI Patria High development activity in initiatives Stable overall revenues such as kognifai and digital twin - Good development within Systems Weak revenues and order intake from area due to Hamina contract signed maritime simulation area in Q1
Slide 20: Strengthening our global leading position through the acquisition of Rolls-Royce Commercial Marine
Strengthening our global leading position through the acquisition of Rolls-Royce Commercial Marine Strengthens Kongsberg Highly complementary Enhanced position to A new strong global Significant cost and revenue Maritime as an integrator portfolios of leading capitalize on industry presence to bette
Slide 21: Financial considerations
Financial considerations Commentary Unaudited pro forma 2017 revenue (NOKm) Unaudited pro forma 2017 EBITDA (NOKm) Challenging market conditions in 23,234 1,279 the maritime sector had a negative impact on RRCM profitability in 2017 (410) 8,744 920 52 Primary focus is to make RRCM 14,490 profita
Slide 22: Adjustment to financial calendar
Adjustment to financial calendar Full CMD will be held after closing of Rolls-Royce Commercial Marine acquisition, date and time TBD Q3-presentation, 26 October 2018, will be extended with a one hour business update WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY -
Slide 23: Outlook
Outlook Last years’ implemented actions will contribute to overall profitability improvements in 2018 KM expects stable revenues and improved profitability in 2018 compared to 2017 KDA has solid prospects for new orders for nearly all product areas KDI will continue to invest in product development
Slide 24: Thank you
Thank you www.kongsberg.com WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information