Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q4 2021 Earnings Presentation
28 slides from Kongsberg Gruppen Asa's earnings presentation, 2022
Slide 1: Investor presentation Q4 2021 & preliminary full year 2021
Investor presentation Q4 2021 & preliminary full year 2021 Geir Håøy, President & CEO Gyrid Skalleberg Ingerø, EVP & Group CFO KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not
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 – full year 2021
Highlights – full year 2021 - Excellent operational performance ESG industry Order backlog Continued Strong cashflow Proposed dividend of NOK 15.30 per share top rated of BNOK 50 scaling from operations and up to 500 MNOK in share buy back WORLD CLASS – Through people, technology and dedication KONG
Slide 4: Highlights 4th quarter
Highlights 4th quarter • Positive trend in aftermarket continues, and improving revenue from new build segment in Maritime • Solid order intake in Defence with book/bill of ~2.5, driven by missile contracts of more than 5 BNOK • Continued roll-out of Kognitwin and Vessel Insight, and scaling to deli
Slide 5: Important contracts awarded in 4th quarter
Important contracts awarded in 4th quarter Remote weapon systems (RWS) Naval Strike Missile (NSM) Joint Strike Missile (JSM) to the U.S Marine Corps (USMC) to the Norwegian Navy to Norway’s fleet of F-35 Digital twin for deep-sea operation Six HUGINs C4 integration to The Metals Company to Ocean Inf
Slide 6: Business update Kongsberg Maritime
Business update Kongsberg Maritime Comments Order intake by shipping segment 2021 • After market at pre-pandemic levels Seaborne & Pax 16% • Positive sentiment in new-build market • Extensive product portfolio enhances scope on vessels Fishery and 10% Special Purpose in key segments After market 47%
Slide 7: Business update Kongsberg Defence & Aerospace
Business update Kongsberg Defence & Aerospace Comments Order intake by business segment 2020 2021 • Strong missile order intake Other Air Defence Other Missiles • MRO business continues to expand 7% 13% Space & Surveillance 3% 3% Naval MRO 4% scope 1% F-35 7% 5% • Continues ramp-up and establish RWS
Slide 8: Business update Kongsberg Digital
Business update Kongsberg Digital Comments Kongitwin and Vessel Insight • Roll-out of Kognitwin and Vessel Insight 1,077 Vessel Insight 723 ⁓2,750 • Digital twin partnership with FutureOn Vessels • Demand for traditional maritime -and cloud-based YE’20 Q4’21 ⁓60 Vessel Insight subscribing # of sold
Slide 9: Financial status
Financial status Gyrid Skalleberg Ingerø, EVP & Group 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 KONGSBERG in writing. Any authorised
Slide 10: Continues to build backlog
Continues to build backlog Order backlog Comments (BNOK) ▪ Backlog increased with BNOK 13.59 during 49.54 2021 19.35 2024 → ▪ All-time high order backlog ▪ Solid visibility 35.95 10.31 2023 ▪ Significant orders from defence division 32.35 increases “long-term backlog” (3 years +) 19.87 2022 Q4 19 Q1
Slide 11: Profitable growth in 2021
Profitable growth in 2021 Revenues EBITDA (BNOK) (BNOK, %) 27.45 14.9% 25.61 12.7% 23.25 7% 9.1% 4.09 3.25 26% 2.11 2019 2020 2021 2019 2020 2021 • Increased EBITDA and margin in both KM and KDA • Revenue growth in all business areas • Main drivers for increased EBITDA; • Growth in all divisions in
Slide 12: Double digit growth in order intake, revenue and EBITDA in Q4
Double digit growth in order intake, revenue and EBITDA in Q4 Order intake and backlog Revenues EBITDA (BNOK) (BNOK) (BNOK, %) 12.48 11.38 +10% 8.11 14.3% 7.15 +13% 13.3% 1.16 0.95 +22% Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 • Order Intake 2021 BNOK
Slide 13: Cashflow 2021
Cashflow 2021 EBITDA cash conversion ratio >1.2 Strong cashflow from operations (BNOK) 1.25 (0.37) 0.15 (0.85) (0.52) (1.74) 4.09 (1.02) 8.12 7.42 (0.21) (0.08) Cash 1.1 EBITDA Change in Tax paid Dividends Investing Net interest Dividend and Repayment Other Translation Cash 31.12 working from activi
Slide 14: Net working capital
Net working capital Kongsberg Maritime Kongsberg Defence & Aerospace NWC % of LTM revenue Net Working Capital BNOK (NWC) NWC % of LTM revenue Net Working Capital BNOK (NWC) (15%) (14%) (13%) (14%) (16%) (18%) 9% 9% 9% (24%) 7% 8% 8% (25%) 5% 6% 5% (28%) 1.62 1.53 1.40 1.20 1.23 1.25 1.14 0.90 0.89 (
Slide 15: Investing for growth
Investing for growth R&D spend per business area CAPEX (PPE) per business area Kongsberg Digital Kongsberg 18% Other Maritime 25% 26% Kongsberg Defence & Aerospace 10% BNOK BNOK 1.72 Kongsberg 1% 0.58 Digital 72% Kongsberg 48% Maritime Kongsberg Defence & Aerospace • R&D spend includes both expensed
Slide 16: Proposed dividend and share buyback
Proposed dividend and share buyback Total remuneration Details NOK per share Total BNOK • Last day including: 11 May 2021 ~18.10 15.30 ~2.80 • Ex. dividend date: 12 May 2021 • Record date: 16 May 2021 • Payment date: 26 May 2021 (“on or about”) Dividend Share buy-back Total ~2.70 0.50 ~3.20 WORLD CL
Slide 17: Return on capital employed continues to increase
Return on capital employed continues to increase ROACE and Average Capital Employed ROACE % Average Capital Employed (BNOK) 32.7% 28.7% 26.8% 24.1% 20.8% 18.1% 13.6% 10.0% 10.1% 10.4 10.2 10.2 9.7 9.7 9.5 9.7 9.7 9.2 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 WORLD CLASS – Through people,
Slide 18: Kongsberg Maritime
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. Any authorised reproduction in whole or in pa rt, mus
Slide 19: Increased order backlog and continuous improved EBITDA margin
Increased order backlog and continuous improved EBITDA margin Order backlog Revenues EBITDA margin (BNOK) (BNOK) (%) 12.0% 16.32 16.51 15.20 13.02 11.31 11.39 1.93 2024 → 9.4% 2.58 2023 6.93 6.97 7.5% 7.5% 5.16 4.40 6.6% 8.51 2022 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020
Slide 20: Cross sales from combined portfolio
Cross sales from combined portfolio Order intake from cross sales Cross sales by Vessel category Cross sales by division (MNOK) (MNOK) (%) Other Tug LNG 5% S&R 1 121 3% 5% DMMC 3% Research 6% 20% Wind P&E 705 Tankers 6% 43% Energy 40% Naval 7% 8% 37% General Cargo ISOL 16% 2020 2021 Cruise & Ferries
Slide 21: Kongsberg Defence & Aerospace
KONGSBERG DEFENCE & AEROSPACE 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
Slide 22: Consecutive growth in order back log, revenue, and EBITDA
Consecutive growth in order back log, revenue, and EBITDA Order backlog Revenues EBITDA margin (BNOK) (BNOK) (%) 35.63 21.3% 19.5% 23.48 17.19 2024 → 15.5% 20.15 11.1% 7.57 2023 9.96 10.74 10.08 7.24 8.50 6.33 6.10 3.3% 10.88 2022 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020
Slide 23: Revenue by region
Revenue by region Revenue by region 2020 Revenue by region 2021 Australia Australia RoW Asia RoW Asia 6% 3% 4% Europe 6% 1% 3% 12% Europe 18% BNOK 8.5 BNOK 10.1 54% North-America Norway 20% 54% North-America 17% Norway WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - S
Slide 24: Kongsberg Digital
KONGSBERG DIGITAL 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
Slide 25: Recurring revenues continue to grow in KDI
Recuring revenues continue to grow in KDI Key figures Highlights (MNOK) ▪ Recurring revenue increased 27% from Q4 +4% 2020 to Q4 2021 220 229 - MNOK 347 recurring revenue in 2021 vs. Revenues MNOK 278 last year (+25%) ▪ Roll-out of new dynamic digital twins and Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 onboardi
Slide 26: Associated Companies
Associated Companies KSAT KSAT PATRIA EBITDA % Revenue (MNOK) EBITDA (MNOK) KOG’s share of net profit (MNOK) EBITDA % Revenue (EURm) EBITDA (EURm) KOG’s share of net profit (MNOK) 16.2% 13.1% 41.7% 41.0% 38.6% 6.7% 534 548 1 232 508 928 1 034 89 70 387 424 475 34 2019 2020 2021 2019 2020 2021 112 12
Slide 27: Outlook
OUTLOOK KONGSBERG DEFENCE KONGSBERG KONGSBERG & AEROSPACE MARITIME DIGITAL Current backlog secures growth in 2022 Positive sentiment in new-building Continued roll-out of KOGNITWIN® and Vessel Insight to existing and new Continued favorable project mix Healthy order backlog coverage and customers su
Slide 28: 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