Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q3 2016 Earnings Presentation
21 slides from Kongsberg Gruppen Asa's earnings presentation, Oct 28, 2016
Slide 1: 3rd Quarter 2016 Investor Presentation
3RD QUARTER 2016 INVESTOR PRESENTATION | 28 OCTOBER 2016 Geir Håøy, President and CEO Hans-Jørgen Wibstad, CFO
Slide 2: A Challenging Quarter for Kongsberg
A CHALLENGING QUARTER FOR KONGSBERG • 14% lower revenues on group level, mainly due to the very weak offshore market • Write downs in KM of backlog, inventory, currency hedges and other items leads to significant negative EBITDA impact of MNOK 354 • KM’s adaptations to the weak market continues – MN
Slide 3: Financial Status
FINANCIAL STATUS © KONGSBERG - All rights reserved
Slide 4: Revenues Q3
REVENUES Q3 4 418 4 234 4 222 4 567 4 263 4 340 3 941 3 991 4 009 4 125 3 428 Q3 revenues down 14%, offshore downturn impacting revenues • KM revenues down 26% compared to Q3 2015, offshore down ~30 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 – Non-offshore related Subsea solid 2014 2015 2016 – Merchant Mari
Slide 5: EBITDA Q3
EBITDA Q3 614 545 493 515 486 EBITDA in Q3 heavily impacted by write- 446 455 386 419 408 downs and restructuring in KM • Reported EBITDA MNOK −40 Margin – Write-downs of MNOK 354 in KM: −1.2 % Inventory (150), Currency (130), Other assets, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 - 40 including receivables
Slide 6: Patria
PATRIA REVENUES (EUR) EBITDA (EUR) 152 136 29 109 24 102 96 94 89 20 19 17 12 5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2015 2016 BRIDGE FROM EBITDA TO KOG’S SHARE OF NET PROFIT 1.7. – 30.9. EUR NOK EBITDA 17 Financial items, taxes, depreciation and amortisation −7 Earnings after tax 10
Slide 7: Non-Recurring Items Q3
NON-RECURRING ITEMS Q3 KM KDS KPS OTHER GROUP Write-down inventory −150 −150 Write-down currency hedges −130 −130 Write-down other assets −74 −74 Restructuring costs −45 −45 Total1 −399 −399 1) List is not exhaustive © KONGSBERG - All rights reserved 28.10.2016 WORLD CLASS - through people, technolo
Slide 8: Revenues & EBITDA YTD
REVENUES & EBITDA YTD REVENUES Q3 YTD EBITDA Q3 YTD 1 515 12 195 12 465 11 893 1 291 883 2014 2015 2016 2014 2015 2016 © KONGSBERG - All rights reserved 28.10.2016 WORLD CLASS - through people, technology and dedication Page 8
Slide 9: Non-Recurring Items YTD
NON-RECURRING ITEMS YTD KM KDS KPS OTHER GROUP Write-down inventory −150 −150 Write-down currency hedges −130 −130 Write-down other assets −74 −74 Restructuring costs −83 −20 −103 Sale of shares in KBC +54 +54 Customer clarifications +38 +38 Total1 −437 - +38 +34 −365 1) List is not exhaustive © KON
Slide 10: Orders Q3
ORDERS Q3 21 096 20 580 21 020 22 033 21 439 21 059 • Book to bill 1,19 in Q3 19 344 19 597 18 718 18 069 17 858 – 1,06 in KM Backlog: – 1,69 in KDS 17 858 • Year to date order intake BNOK 11.3 vs. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 12.4 at Q3 2015 2014 2015 2016 • MNOK 660 write-down of KM’s backlog
Slide 11: Cash Flow Q3 and YTD
CASH FLOW Q3 AND YTD Q3 Negative cash flow in Q3 MNOK 187 78 • Project execution in KDS draws on substantial 40 159 228 prepayments received in 2014 1 436 1 249 • Other normal working capital fluctuations Cash 16Q2 EBITDA Change in Net changes in Investments Cash 16Q3 other operating financing and c
Slide 12: Business Update
BUSINESS UPDATE © KONGSBERG - All rights reserved
Slide 13: Kongsberg Maritime
KONGSBERG MARITIME • KM book/bill 1.06 in Q3 – solid order intake from EIT/EPC segment • Offshore related activitites declining, adaptation continues – Reducing head-count by year-end with ~800 since Q2 2015 – Cost base improved with MNOK 500 from 2016 to 2017 • High activity level in non-offshore r
Slide 14: Kongsberg Defence Systems
KONGSBERG DEFENCE SYSTEMS • The large delivery projects are progressing as planned • Strong order intake in Q3, mainly driven by Space & Surveillance and Defence Communications • Increasing production in the F-35 program • KDS’s solutions well positioned in current defence markets, opportunities wit
Slide 15: Kongsberg Protech Systems
KONGSBERG PROTECH SYSTEMS • Delivery of RWS to eight different customers in Q3 • Executing the first MCT-30 Stryker program as planned – First system delivered to customer in September • Further MCT-30 and RWS opportunities being pursued NEW ORDERS: BACKLOG DELIVERY: 899 782 2016 584 579 608 21 % 20
Slide 16: Patria
PATRIA 7% growth in revenues from 2015 • High market activity, especially within the armoured vehicles business • Good execution of armoured vehicle projects influences profits in the quarter Experts in military maintenance – accounting for ~75% of group revenues • Maintenance of a wide range of equ
Slide 17: Capital Markets Day 2016
CAPITAL MARKETS DAY 2016 Date: 17 November 2016 Place: «Sjømilitære Samfund», Horten, Norway • Meet and liste to KONGSBERG’s senior management • Get the latest update on – Ambitions – Technology – Opportunities ahead • This year with extra focus on the Horten businesses – Subsea – Merchant Marine –
Slide 18: Outlook
OUTLOOK © KONGSBERG - All rights reserved
Slide 19: 2016 Outlook
2016 OUTLOOK KONGSBERG MARITIME • Significant drop in contracting in the offshore vessel market • Weakened order situation within the traditional merchant marine segment • Revenues lower than same period last year and weak margin level expected in Q4 • Still some uncertainty in parts of the order ba
Slide 20: 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 21: World Class
WORLD CLASS THROUGH PEOPLE, TECHNOLOGY AND DEDICATION © KONGSBERG - All rights reserved