Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q4 2013 Earnings Presentation
49 slides from Kongsberg Gruppen Asa's earnings presentation, Feb 7, 2014
Slide 1: Investor presentation 4th Quarter 2013
Investor presentation 4th Quarter 2013 | 7th February 2014 . 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 authori
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: Agenda
Agenda • Financial status Q4 2013 • Status - Business Areas • Updates • Appendix SPEAKERS: • Walter Qvam – CEO • Hans-Jørgen Wibstad – CFO . 06.02.2014 WORLD CLASS - through people, technology and dedication Page 3
Slide 4: Highlights in Q4
Highlights in Q4 • Record high revenues in Q4, MNOK 4,745, and full-year revenue growth of 4,3 % • Solid EBITDA of MNOK 611 in Q4 • Strong cash flow from operations of MNOK 1,066 in Q4 • Strong operational performance in all units – All-time-high 2013 revenues and order intake in Kongsberg Maritime
Slide 5: Highlights 2013
Highlights 2013 . 06.02.2014 WORLD CLASS - through people, technology and dedication Page 5
Slide 6: Financial status 2013
Financial status 2013 All-time-high operating revenues in Q4 5 000 • Q4 revenues MNOK 4,745 4 500 – Positive effect from JSM 4 000 phase III bridge contract 3 500 3 000 – High underlying activity level 2 500 in all business areas 2 000 1 500 1 000 500 0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-1
Slide 7: Financial status 2013: revenues per business area
Financial status 2013 Full year operating revenues per business area KOGT 1 077 • KM with strong growth of 10.4 % in 2013 KPS - KM represents more than 50 % of total revenues 2 420 2013 KM 8 264 • Solid performance in KDS KDS 4 554 - Activity approx. at same level as 2012 (-2,1%) - Strong execution
Slide 8: Financial status 2013: EBITDA
Financial status 2013 EBITDA 700 • Strong Q4 EBITDA with MNOK 611 600 – 6.6 % higher than Q4 2012 500 – Q4 2013 EBITDA-margin 12.9% 400 – Good performance in all business areas 300 in Q4 200 – Results positively impacted by JSM phase III bridge contract 100 0 Q1-11 Q3-11 Q1-12 Q3-12 Q1-13 Q3-13 3 00
Slide 9: Financial status 2013: EBITDA per business area
Financial status 2013 KOGT 49 Full year EBITDA per business area KPS • All business areas, except KPS show 419 increased EBITDA KM + 12.3 % 2013 KM 1 179 KDS + 8.8 % KDS 520 KOGT + 11.4 % KPS - 42.4 % • Good 2013 for KM with improved revenues, EBITDA, EBITDA-margin and KOGT 44 order intake • Increas
Slide 10: Financial status Q4 2013: quarterly trends in orders
Financial status Q4 2013 Quarterly trends in orders Backlog of orders 44% 20 000 18 000 16 000 56% 14 000 12 000 10 000 2014 2015=> 8 000 6 000 4 000 2 000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Backlog of orders 2013 KOGT 2011 2012 2013 734 New orders per quarter 4 500 KPS 4 000 2 805 3 500 KM 6 529
Slide 11: Strong cash flow improvement from 2012 to 2013
Financial status Q4 2013 Strong cash flow improvement from 2012 to 2013 Q4-13 Q4-12 2013 2012 EBITDA 611 573 2,142 2,294 Change in other operating related items 455 311 (159) (2,087) Cash flow from operating activities 1,066 884 1,983 207 Acquisition of fixed assets (121) (165) (346) (523) Acquisiti
Slide 12: Financial status Q4 2013: Cash Flow
Financial status Q4 2013 Cash Flow Q4 2013 2013 3900 5100 3600 4800 4500 159 3300 180 10 455 4200 775 3000 3900 2700 611 3600 2 142 445 3300 2400 3000 2100 3 272 2700 1800 2400 2100 3 272 1500 1800 1200 2 376 1500 900 1200 2 509 600 900 600 300 300 0 0 Cash IB EBITDA Q4 Change in Investments Net cha
Slide 13: Dividend proposal for 2013
Dividend proposal for 2013 Historical pay-out ratio Dividend proposal 2013 (dividend per share/ earnings per share) • KONGSBERG has a new 60% dividend policy 51,3 % 50,0 % • KONGSBERG has a solid 50% financial position 40% • KONGSBERG celebrates its 31,4 % 33,9 % 40,0 % 200-year anniversary in 2014
Slide 14: Summary key figures
Summary key figures Q4 2013 Q4 2012 2013 2012 Operating revenues 4,745 4,209 16,323 15,652 EBITDA 611 573 2,142 2,294 EBITDA margin 12.9 % 13.6 % 13.1 % 14.7 % EBIT 472 442 1,659 1,840 EBT 465 423 1,644 1,809 EPS 3.14 2.51 10.24 10.91 Equity % - - 38.2 % 38.6 % ROACE - - 21.5 % 26.6 % Backlog of ord
Slide 15: Agenda
Agenda • Financial status Q4 2013 • Status - Business Areas • Updates • Appendix . 06.02.2014 WORLD CLASS - through people, technology and dedication Page 15
Slide 16: Kongsberg Maritime Status
KONGSBERG 20) Kongsberg Maritime Status
Slide 17: Kongsberg Maritime Q4 2013
Kongsberg Maritime Q4 2013 Quarterly trends in operating revenues and EBITDA Operating revenues Revenues 2013 2 500 2 000 1 500 Subsea 24% 1 000 Merchant 500 13% Offshore 63% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 EBITDA 350 Revenues 2012 300 250 200 Subsea 24% 150 100 Merchant Offshor
Slide 18: Kongsberg Maritime Q4 2013: orders
Kongsberg Maritime Q4 2013 Quarterly trends in orders Backlog of orders 8 000 44% 7 000 6 000 5 000 56% 4 000 3 000 2014 2015=> 2 000 1 000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders 2013 New orders per quarter 3 000 Subsea 2 500 24% 2 000 1 500 1 000 Merchant Offshore 14% 62% 5
Slide 19: Highlights Kongsberg Maritime
Highlights Kongsberg Maritime • All time high activity level in Q4 and 2013 • Record high deliveries of complete “Full Picture” solutions to both drilling units and LNG vessels • More than 200 DP-systems delivered in 2013 • Strong progress in sale of acoustic control systems (ACS), especially for BO
Slide 20: Further expanding our leading AUV position – Munin
Further expanding our leading AUV position – Munin • Further development of our world leading position within AUV-technology • Operable world wide within a very short time – Highly mobile: Can be transported easily by air and no need for customized ship for operations – Factory calibration of payloa
Slide 21: Major Integrated Full Picture contract to new Petrofac Derrick Pipelayer Vessel
Major Integrated Full Picture contract to new Petrofac Derrick Pipelayer Vessel • Confirming our strategy for Integrated Full Picture solutions • Includes extensive equipment supply, systems & integration engineering and project management • Project also includes electrical Petrofac JSD 6000 Derrick
Slide 22: Kongsberg Defence Systems Status
Kongsberg Defence Systems Status .
Slide 23: Kongsberg Defence Systems Q4 2013
Kongsberg Defence Systems Q4 2013 Quarterly trends in operating revenues and EBITDA Revenues 2013 Operating revenues 1 800 Comm. 1 600 7% 1 400 1 200 Missile 31% 1 000 Intergrate d Def 800 30% 600 400 Aerost 10% 200 Naval sys 22% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 Revenues 2012 EBI
Slide 24: Kongsberg Defence Systems Q4 2013: orders
Kongsberg Defence Systems Q4 2013 Quarterly trends in orders Backlog of orders 9 000 8 000 45% 7 000 6 000 5 000 55% 4 000 3 000 2 000 2014 2015=> 1 000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders 2013 Comm 4% New orders per quarter Integrated Aerostr. 2 000 Def. Sys 14% 16% 1 80
Slide 25: Highlights Kongsberg Defence Systems
Highlights Kongsberg Defence Systems • High activity level both in Q4 and 2013 – All major delivery and development programs on track – Several ongoing campaigns within KDS’ markets • Missiles • Air Defence • Communications • Naval Systems • Strongest order intake since Q4 2011 – Several contracts w
Slide 26: NASAMS to OMAN
NASAMS to OMAN – Largest delivery contract in KONGSBERG’s history - NOK 3.7 billion - The KONGSBERG and Raytheon alliance - A new NASAMS region • NASAMS is the most sold air defence system in its class in the last 10 years. - NASAMS – National Advanced Surface-to-Air Missile System • Open architectu
Slide 27: Kongsberg Protech Systems Status
Kongsberg Protech Systems Status .
Slide 28: Kongsberg Protech Systems Q4 2013
Kongsberg Protech Systems Q4 2013 Quarterly trends in operating revenues and EBITDA Operating revenues 1 200 1 000 800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 EBITDA 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 . 06.02.2014 WORLD CLASS - throug
Slide 29: Kongsberg Protech Systems Q4 2013: orders
Kongsberg Protech Systems Q4 2013 Quarterly trends in orders Backlog of orders 6 000 5 000 40% 4 000 3 000 60% 2 000 1 000 2014 2015=> 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders per quarter 1 400 1 200 1 000 800 600 400 200 0 • After sales and framework agreements not Q1 Q2 Q3 Q
Slide 30: Highlights Kongsberg Protech Systems
Highlights Kongsberg Protech Systems • Slower market but 1.1 book/bill in Q4 – Selected orders in Q4: • PROTECTOR RWS to Switzerland - MNOK 196 • Orders under CROWS framework agreement valued at MNOK 362 – Development contract for Low Profile RWS • Obsolescence management contract to Australia – MNO
Slide 31: Kongsberg Oil & Gas Technologies Status
Kongsberg Oil & Gas Technologies Status .
Slide 32: Kongsberg Oil & Gas Technologies Q4 2013
Kongsberg Oil & Gas Technologies Q4 2013 Quarterly trends in operating revenues and EBITDA Operating revenues 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 EBITDA 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -10 -20 2011 2012 2013 . 06.02.2014 WORLD CLASS -
Slide 33: Kongsberg Oil & Gas Technologies Q4 2013: orders
Kongsberg Oil & Gas Technologies Q4 2013 Quarterly trends in orders Backlog of orders 900 32 % 800 700 600 500 68 % 400 300 200 2014 2015=> 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders per quarter 700 600 500 400 300 200 100 • After sales and framework agreements not converted
Slide 34: Highlights Kongsberg Oil & Gas Technologies
Highlights Kongsberg Oil & Gas Technologies • Strong order intake in 2013 but slower in Q4 • Q4 order intake MNOK 186 – Combination of software for real time decision support systems and smaller EPC-contracts • Significantly strengthened market position for important parts of the product portfolio •
Slide 35: Agenda
Agenda • Financial status Q4 2013 • Status - Business Areas • Updates • Appendix . 06.02.2014 WORLD CLASS - through people, technology and dedication Page 35
Slide 36: Progress on strategic and financial targets from CMD 2013
Progress on strategic and financial targets from CMD 2013 • Strategic growth directions – Defence, Maritime, Oil and Gas • Growth and profitability targets – Growth, EBITA, ROACE, Dividends – Progress according to plan • Group-wide program to strengthen profitability and competitiveness – DELTAONE -
Slide 37: DELTAONE target: NOK 1 billion
DELTAONE target: NOK 1 billion • Program has concluded the ambition - Larger potential identified - Potentials identified throughout the whole organization, both group-wide and within business areas • Program is now entering into solution development phase by leveraging external and internal best pr
Slide 38: KONGSBERG 200
KONGSBERG 200 Celebrating our first 200 years - by focusing on the next 200! . 06.02.2014 WORLD CLASS - through people, technology and dedication Page 38
Slide 39: Outlook
Outlook • Kongsberg Maritime expects a continued high level of activity for the offshore and subsea divisions in 2014. The merchant marine market showed promising signs in 2013, which over time should have a positive impact on the segment. Further focus on the global after market and customer suppor
Slide 40: Agenda
Agenda • Financial status Q4 2013 • Status - Business Areas • Updates • Appendix . 06.02.2014 WORLD CLASS - through people, technology and dedication Page 40
Slide 41: Appendix
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 in part, must include t
Slide 42: Determined, Innovative, Collaborative, Reliable
DETERMINED INNOVATIVE COLLABORATIVE RELIABLE What we start we finish. We relentlessly pursue We collaborate as individuals We are reliable people. We do not give in. improvements, new ideas and as an organisation. We are responsible citizens. and new solutions. . 06.02.2014 WORLD CLASS - through peo
Slide 43: Solutions from deep sea to outer space
Solutions from deep sea to outer space - Extreme performance for extreme conditions KONGSBERG is a world leading supplier of high-technology solutions and advanced applications for the Maritime, Oil & Gas, Defence and Space industry. Our solutions creates safety and performance for people and compan
Slide 44: Financial status at 31 December 2013: income statement
Financial status at 31 December 2013 Income statement MNOK. Q4-13 Q4-12 2013 2012 Operating revenues 4 745 4 209 16 323 15 652 Operating expenses (4 134) (3 636) (14 181) (13 358) Earnings before interest, tax, depreciation and amortisation 611 573 2 142 2 294 (EBITDA) Depreciation (96) (96) (345) (
Slide 45: Financial status at 31 December 2013: balance sheet
Financial status at 31 December 2013 Balance sheet 31 MNOK 31 Dec.13 Sept.13 31 Dec.12 Property, plant and equipment 2 655 2 622 2 602 Intangible assets 3 137 3 117 2 750 Other non-current assets 295 288 280 Total non-current assets 6 087 6 027 5 632 Short-term assets 8 076 8 405 8 133 Cash and shor
Slide 46: Shares and shareholders
Shares and shareholders 20 largest shareholders (23 January 2014) Share price performance Shareholders # shares Stake 1 State repr. by the Ministry of Trade and Industry 60 001 600 50.00% - Index1) 2 Arendals Fossekompani 9 552 796 7.96% - KOG compared with OSEBX last 12 months 3 Nat
Slide 47: Currency
Currency Hedging portfolio at 31 December 2013 (values in MNOK) Hedging portfolio 8 000 7 000 Orders: All orders signed in foreign currencies are 6 000 hedged, eliminating currency risk 5 000 4 000 3 000 Prognosis: Prior to signature, probable contracts are 2 000 also hedged pursuant to the guid
Slide 48: Financial calendar and Investor Relations contacts
Financial calendar and Investor Relations contacts Financial calendar 2014 IR contacts Hans-Jørgen Wibstad Publication of quarterly figures CFO & EVP Telephone: +47 32 28 39 90 • Q1 13 May E-mail: hans.jorgen.wibstad@kongsberg.com • Q2 14 August • Q3 31 October Jan Erik Hoff VP Investor Relations an
Slide 49: kongsberg.com
kongsberg.com . 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 part, must in