Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Debt Investor Presentation (May 2023)
19 slides from Kongsberg Gruppen Asa's debt investor presentation, May 2023
Slide 1: Credit Investor Presentation
COMPANY UPDATE Credit Investor Presentation May 2023 Mette Toft Bjørgen, EVP & CFO Jan Erik Hoff, GVP IR Jan Edvin Pedersen, GVP Finance & Treasurer KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use
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: Globally leading high technology provider
Globally leading high technology provider Kongsberg Gruppen at a glance Revenue split by segment2 Kongsberg Maritime Kongsberg Discovery ▪ Kongsberg Gruppen is an international technology group which supplies high Kongsberg Defence & Aerospace Kongsberg Digital 31.8 technology systems and solutions.
Slide 4: Revenue
Revenue (NOKbn) Kongsberg Maritime Kongsberg Defence & Aerospace 16.5 17.4 14.3 14.4 12.9 11.9 10.1 8.5 KONGSBERG +145% 2020 2021 2022 LTM 2020 2021 2022 LTM 33.8 Q1 ’23 Q1’23 31.8 25.6 27.4 Kongsberg Discovery Kongsberg Digital 23.2 Recurring revenue 13.8 3.0 3.2 2.5 2.5 1.0 1.1 0.8 0.8 2018 2019 2
Slide 5: EBIT and EBIT-margin
EBIT and EBIT-margin (NOKbn, %) Kongsberg Maritime Kongsberg Defence & Aerospace 16.1% 16.2% 16.6% 9.1% 13.6% 6.8% 7.6% 2.1 1.9 2.4% 1.6 1.6 1.3 1.0 1.2 KONGSBERG 0.3 EBIT-margin EBIT (NOK bn) 11.2% 2020 2021 2022 LTM 2020 2021 2022 LTM 10.4% 10.4% Q1’23 Q1’23 7.4% 3.8 5.1% 4.4% 3.3 Kongsberg Discov
Slide 6: Net working capital development
Net working capital development (NOKm, %) Kongsberg Maritime & Kongsberg Discovery 14.9%2 11.7% 9.2% 3,0591 5.3% 2,277 1,535 KONGSBERG 893 NWC of revenue (%) NWC (NOKm) 2020 2021 2022 LTM Q1’23 1,570 Kongsberg Defence & Aerospace 565 4.6% (14) 17 (1.8%) -2,010 -1,546 -1,299 -2,837 (0.1%) 0.1% 1.8% (
Slide 7: Ramping up production capacity to meet demand
Ramping up production capacity to meet demand GROUP capital expenditures NOKbn 2016-LTM 1.5 4.0% ▪ Investments in property, plant and equipment averaging 2.4% 2.4% 2.1% 2.1% 2.1% 2.5% Q1 2023 1.7% 2.4% of revenues over the last years 1.0 0.85 0.64 0.58 0.68 ▪ Will invest ~NOK 1.5bn in new production
Slide 8: Business update Kongsberg Maritime
Business update Kongsberg Maritime New build order intake (per Q1’23) Pax Other ▪ NOK 7bn order intake and 1.51 Offshore wind 4% Seaborne book/bill 7% 1% 21% ▪ Diversified and solid newbuild order OPU 11% intake ▪ Continued strong pace in the aftermarket, especially related to Order backlog (NOK bn)
Slide 9: Business update Kongsberg Defence & Aerospace
Business update Kongsberg Defence & Aerospace Strong missile opportunities ▪ Several countries have announced ▪ NOK 3.8bn order intake and book/bill plans or intentions to purchase Naval 1.09 Strike Missile ▪ Growth driven by solid missiles- and ▪ US President’s FY24 Budget proposal NASAMS-progress
Slide 10: Business update Kongsberg Discovery
Business update Kongsberg Discovery ▪ NOK 1bn order intake and 1.14 book/bill - Hugin Superior to European defence customer ▪ Solid exposure towards energy, fisheries, research, security and surveillance Order intake (NOK bn) Order backlog (NOK bn) Order backlog distribution 3.6 2.8 2.7 57% 2023 2.4
Slide 11: Business update Kongsberg Digital: Kognitwin
Business update Kongsberg Digital ▪ 20 dynamic digital twins in operation ▪ Signed multi-year agreement with Chevron for Kognitwin ▪ Continued roll-out of digital twins and onboarding of new users on existing solutions ~15,300 ~2,000 ~2,150 Vessel Insight Kognitwin ⁓3,000 ~8,400 20 Vessels Digital T
Slide 12: Outlook
Outlook Kongsberg Defence Kongsberg Kongsberg Kongsberg & Aerospace Maritime Digital Discovery ▪ Current backlog secures ▪ Positive sentiment in “high ▪ Continued increase in ▪ Strong positions and solid growth in 2023 value” segments recurring revenues demand from areas such as ▪ Increasing number
Slide 13: Sustainable long-term value creation
Sustainable long-term value creation In line with the ambitions of the Paris agreement REDUCE THE CO2 REDUCE EMISSIONS THE PRODUCT EMISSIONS FROM OUR FROM OUR VALUE AND MARKET OWN OPERATIONS CHAIN PERSPECTIVE Near 100% reduction of CO2 2/3 of our suppliers will set Technology and expertise for emiss
Slide 14: Shared objectives for a sustainable ocean
Shared objectives for a sustainable ocean Researchers estimate a cost of 1.4 trillion USD to reach IMO 2050 target 13 % Sailing fleet 2050 13 % 70 % reduction in CO2 intensity & 50 % reduction in total GHG emissions 87 % Land based storage, infrastructure & production 87 % Source: Transition Strateg
Slide 15: How we support the mission
How we support the mission Drivers impacting pace Competence unlocking Products and services supporting the green transition of our customers of decarbonisation each vessel’s potential AVAILABLE TECHNOLOGY ELECTRICAL electrification of our product offerings FUEL ENERGY SHIP DESIGN & PROPULSION AVAIL
Slide 16: Maintaining capital allocation priorities
Maintaining capital allocation priorities Capital allocation priorities 1. Solid balance sheet 2. Invest for organic growth 3. Shareholder remuneration 4. Portfolio management WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 16
Slide 17: Solid balance sheet & debt capacity
Solid balance sheet & debt capacity Net debt/EBITDA 2019-LTM Q1 2023 2.5 2.5x (cap) ▪ Long-term target of Net debt / EBITDA of 1.5x +/-1.0x 2.0 ▪ Net debt/EBITDA of below 2.5x securing 1.5x (range - Access to funding 1.5 mid point) - Customer confidence 1.0 - Financial flexibility 0.5 0.3x 0.1x 0.2x
Slide 18: Debt maturity profile
Debt maturity profile 2 500 ▪ Syndicated credit facility of NOK 2.5bn and an overdraft credit facility of NOK 1.0bn. Neither were utilized as of Q1 2023 1 500 ▪ Four bonds outstanding amounting to a total of NOK 2.45bn ▪ Aims to keep the interest rate duration below 450 500 2.5, with the interest ra
Slide 19: KONGSBERG – Protecting people & planet Q&A
KONGSBERG – Protecting people & planet From deep sea to outer space Q&A WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 19
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