Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q3 2020 Earnings Presentation
22 slides from Kongsberg Gruppen Asa's earnings presentation, 2020
Slide 1: Investor Presentation Q3 2020
INVESTOR PRESENTATION Q3 2020 Geir Håøy, President & CEO Gyrid Skalleberg Ingerø, EVP & 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 agreed with KO
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: Highlights third quarter 2020
Highlights third quarter 2020 ▪ Strong EBITDA and margin ▪ Solid project execution and cost focus ▪ Value capture program continue to deliver ahead of plan ▪ BNOK 5.8 in revenue ▪ New strategic agreement with Shell Global Solutions International ▪ Additional dividend and share buy-back WORLD CLASS –
Slide 4: Important contracts signed in third quarter
Important contracts signed in third quarter Framework agreement with NICFI for Framework agreement for Kognitwin® with Zero-emission autonomous vessels global deforestation surveillance Shell Global Solutions International to ASKO Innovative krill vessel Hugin AUV Survey Systems NATO Tactical Radio
Slide 5: Financial status
Financial status Gyrid Skalleberg Ingerø, CFO WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 5
Slide 6: Strong EBITDA and margins
Strong EBITDA and margins Order intake and backlog Revenue EBITDA EBIT Order Intake YTD BNOK 17.44 YTD BNOK 18.46 YTD BNOK 2.30 YTD BNOK 1.33 (BNOK) (BNOK) (BNOK, %) (BNOK, %) 33.31 31.75 15.8% 11.81 10.3% 5.83 5.80 8.5% 0.92 3.3% 0.60 4.56 0.50 0.19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19 Q4 19 Q1 20 Q
Slide 7: Cashflow
Cashflow Positive cashflow from operations offset by tax related to Hydroid transaction Comments (BNOK) ▪ Positive cashflow from operations, albeit with increased working capital 0.58 0.92 0.18 ▪ Increase in working capital driven by; 8.61 0.45 0.09 8.10 - Project ramp-up 0.12 0.02 - Payment of empl
Slide 8: Net Working Capital
Net Working Capital – Kongsberg Maritime 12.7% 9.4% 7.9%* 9.4% 7.5% 7.2%* 6.4% 6.8% 5.3%* Net Working 1.28 1.20 1.62 1.14 1.14 Capital 0.87 Q3 18 0.66 Q4 18 0.54 Q1 19 Q2 19 Q3 19 0.90 Q4 19 Q1 20 Q2 20 Q3 20 NWC in % of LTM revenue Working capital (BNOK) *inc. proforma CM Net Working Capital – Kong
Slide 9: Kongsberg Maritime Q3 2020
Kongsberg Maritime Q3 2020 WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 9
Slide 10: KM order intake Q3 2020 in line with Q3 2019
KM order intake Q3 2020 in line with Q3 2019 Order intake and book-to-bill Order backlog (BNOK) (BNOK) 12.45 12.40 12.11 11.31 11.83 0.93 0.83 2.05 2022 → 3.34 3.44 6.32 2021 +3% 3.45 Q4 2020 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 YTD Order intake BNOK 12.1 (book-to-bill 1.01) B
Slide 11: Increased profit and margins in KM due to improved operations and lower cost
Increased profit and margins in KM due to improved operations and lower cost Revenue EBITDA EBIT YTD BNOK 12.00 YTD BNOK 1.07 YTD BNOK 0.48 (BNOK) (BNOK, %) (BNOK, %) 11.1% 4.04 5.5% 3.70 -9% 6.2% 0.41 0.8% 84% 0.22 0.23 597% 0.03 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19 Q4
Slide 12: Value Capture program approaching completion
Value Capture program approaching completion P&L effect from cost savings relative to 2018 Status per Q3 (MNOK) • Realized savings of MNOK 150 in Q3 2020 Quarterly effects Annual effects • 445 MNOK realized YTD 160 150 500 135 55 Remaining • Deck Machinery restructuring and Propulsion & Engines opti
Slide 13: KDA
KDA 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. Any authorised reproduction in whole or in pa rt, must include this
Slide 14: Backlog in KDA supports growth
Backlog in KDA supports growth Order intake Order backlog (BNOK) (BNOK) 20.03 20.15 19.98 19.66 18.76 8.25 8.15 2022 → 8.03 2021 0.99 2.57 Q4 2020 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 YTD Order intake BNOK 4.54 (book-to-bill 0.77) WORLD CLASS – Through people, technology and d
Slide 15: Continued revenue growth and strong EBITDA in KDA
Continued revenue growth and strong EBITDA in KDA Revenue EBITDA EBIT Revenue (BNOK) YTD BNOK 5.88 EBITDA (BNOK) and EBITDA margin YTD BNOK 1.14(%) EBIT (BNOK) and EBIT margin (%)0.77 YTD BNOK (BNOK) (BNOK, %) (BNOK, %) 24.5% 17.5% 1.93 9.5% 1.58 22% 16.0% 0.47 87% 0.34 0.25 0.15 126% Q3 19 Q4 19 Q1
Slide 16: Associated Companies
Associated Companies KSAT development (BNOK) KSAT revenue and EBITDA PATRIA revenue and EBIT development (EURm) EBITDA % Revenue (MNOK) EBITDA (MNOK) KOG’s share of net profit (MNOK) EBIT % Revenue (EURm) EBIT (EURm) KOG’s share of net profit (MNOK) 42.2% 42.2% 41.5% 41.7% 527 508 928 995 476 844 46
Slide 17: Additional dividend and share buyback
Additional dividend and share buyback Total remuneration Updated dividend policy Total MNOK NOK/share 2,450 200 “KONGSBERG seeks to pay an ordinary dividend per share that is stable or growing year over year. Special dividends and/or share buybacks may serve as a 1,800 supplement to ordinary dividen
Slide 18: Outlook
OUTLOOK KONGSBERG DEFENCE KONGSBERG KONGSBERG & AEROSPACE MARITIME DIGITAL Current backlog secure growth in 2020 Healthy order backlog coverage and Increased interest and demand for and 2021 stable lifecycle business KONGSBERG’s digital solutions Efficient operations and increased scale New build ma
Slide 19: Capital Markets Day 12 November 11am CET
Capital Markets Day 12 November 11am CET WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 19
Slide 20: Q&A
INVESTOR PRESENTATION Q&A 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. Any authorised reproduction in whole or in pa
Slide 21: Appendix
INVESTOR PRESENTATION Appendix 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. Any authorised reproduction in whole or i
Slide 22: 150 MNOK savings realized in Q3 2020
150 MNOK savings realized in Q3 2020 Realized cost savings P&L effect of cost savings relative to 2018, MNOK Q1 Q2 Q3 Q4 Q1 Q2 Q3 Area Comments to realized savings ‘19 ‘19 ‘19 ‘19 ‘20 ‘20 ‘20 Footprint & delivery Effects of co-locations, production facility shutdowns 3 11 12 15 34 45 45 streamlining