Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q2 2020 Earnings Presentation
26 slides from Kongsberg Gruppen Asa's earnings presentation, 2020
Slide 1: Investor Presentation Q2 2020
INVESTOR PRESENTATION Q2 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 second quarter 2020
Highlights second quarter 2020 ▪ Order intake of BNOK 6.07 with book/bill of 1,01 ▪ BNOK 5.98 in revenue ▪ Solid profitability with EBITDA of MNOK 772 (12.9%) ▪ Cost focus and cost reduction initiatives ▪ Value capture and integration of CM on track ▪ Several important agreements ▪ Strategic acquisi
Slide 4: Good order intake in a challenging period
Good order intake in a challenging period RWS to the Canadian army MCT - 30 to the United States Real-time software service Marine Corps Strong order intake from Realised multiple cross sales opportunities Book bill above 1 in KM the F-35 program WORLD CLASS – Through people, technology and dedicati
Slide 5: Solid performance in all business areas
Solid performance in all business areas Maritime deliver good financial Increased interest in our digital Defence continues to sign strategic results, despite a challenging market product portfolio contracts and delivers on operations • Aftermarket impacted by COVID-19 • Continue to gain momentum in
Slide 6: Acquisitions of COACH solutions and Patria Helicopters
Acquisitions of COACH solutions and Patria Helicopters COACH Solutions ▪ Entry-level vessel performance systems ▪ Increases installed based with ~600 vessels ▪ Complementary to KDI’s product offering Patria Helicopters ▪ Strengthens KDA’s positions in the MRO segment and ability to support the NH-90
Slide 7: COVID-19 Update
COVID-19 Update Our #1 priority remain: Safeguard our employees, deliver to our customers, and secure financial strength Less strict travel restrictions and gradual “return to office” in certain regions Continue to work with governments to promote value creating activities Position KONGSBERG for “th
Slide 8: Financial status
Financial status Gyrid Skalleberg Ingerø, CFO WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 8
Slide 9: KONGSBERG financial results
KONGSBERG financial results Stable revenues and solid profitability Order intake Revenues Financial highlights ▪ Lower order intake in both KM and KDA 9.30 compared to a strong Q2 2019 6.07 -35% 6.01 5.98 0% ▪ Decreased revenue in KM offset by increased revenue in KDA Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q
Slide 10: Order backlog and order intake
Order backlog and order intake Order intake continue to support a book/bill above 1 Stable order backlog throughout second quarter (BNOK) (BNOK) 33.31 32.35 33.34 32.93 2.02 1.55 0.84 1.02 1.01 27.18 9.41 2022 → 11.81 9.30 12.88 2021 6.64 6.81 6.07 10.65 H2 2020 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q
Slide 11: Cashflow development
Cashflow development Cashflow impacted by changes in working capital and currency effects Comments Cashflow development (BNOK) ▪ Positive impact from operations offset by changes in working capital ▪ Increase in working capital offset by reduced 9.54 0.77 (0.81) trade receivables (0.25) (0.04) (0.45
Slide 12: Net Working Capital by Business Area
Net Working Capital – Kongsberg Maritime 11.8% 12.7% 9.4% 7.9%* 7.5% 7.2%* 6.4% 6.8% 5.3%* Q2 1.28 1.14 1.14 1.20 NWC 0.81 Q2 18 0.87 Q3 18 0.66 Q4 18 0.54 Q1 19 Q2 19 Q3 19 0.90 Q4 19 Q1 20 Q2 20 NWC in % of LTM revenue Working capital (BNOK) *inc. proforma CM Net Working Capital – Kongsberg Defenc
Slide 13: Kongsberg Maritime Q2
Kongsberg Maritime Q2 WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 13
Slide 14: Order intake down, while backlog remain stable
Order intake down, while backlog remain stable Order intake down ~22% vs. Q2 2019 Order backlog remain stable (BNOK) (BNOK) 1.23 12.92 12.45 12.40 1.02 12.11 11.31 1.38 2022 → 4.92 5.06 2021 3.85 -22% 5.67 H2 2020 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 H1 ’20; BNOK 8.67 H1 ’19;
Slide 15: Decrease in revenue offset by good operating performance
Decrease in revenue offset by good operating performance with in increased profit and margins Revenue EBITDA EBIT Revenue (BNOK) EBITDA (BNOK) and EBITDA margin (%) EBIT (BNOK) and EBIT margin (%) 7.1% 4.2% 2.2% -1.2% 3.99 3.76 -6% 0.27 0.17 59% 0.08 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q3 19 Q4 19 Q
Slide 16: Value Capture program continued with strong progress
Value Capture program continued with strong progress Key figures Status per Q2 P&L effect of cost savings relative to 2018, MNOK • Realized savings of 160 MNOK in Q2 Quarterly effects Annual effects • 295 MNOK realized YTD; well positioned to 160 500 reached target of 500 MNOK annual savings 135 205
Slide 17: 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 18: Backlog remains strong
Backlog remains strong Order intake Order backlog remains strong (BNOK) (BNOK) 20.03 20.15 19.98 19.66 2.27 7.66 2022 → 13.43 0.89 4.16 7.44 2021 -57% 1.79 4.56 H2 2020 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 H1 ’20; BNOK 3.56 H1 ’19; BNOK 5.28 WORLD CLASS – Through people, techn
Slide 19: Revenue growth and strong operational performance
Revenue growth and strong operational performance Revenue EBITDA EBIT Revenue (BNOK) EBITDA (BNOK) and EBITDA margin (%) EBIT (BNOK) and EBIT margin (%) 23.6% 17.5% 2.01 1.83 10.7% 10% 15.9% 0.47 63% 0.35 0.29 0.20 79% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q3 19 Q4 19 Q1
Slide 20: Outlook – solid operations, but continued uncertainty
Outlook – solid operations, but continued uncertainty KDA KM KDI Current backlog secure growth in Good order backlog coverage and Increased interest and demand for 2020 stable lifecycle business, although KONGSBERG’s digital solutions expected impacted from COVID-19 Solid margins due to good project
Slide 21: 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 22: 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 23: Order intake distribution
6% SYSTEMS & DECK MACHINERY 20% INTEGRATED 13% SOLUTIONS PROPULSION & ENGINES Q2 2020 Order intake KM 18% distribution 43% GLOBAL CUSTOMER SENSORS & ROBOTICS** SUPPORT* 9 5% Order intake KM Q2 2020: MNOK 3 850 SYSTEMS & DECK 23% MACHINERY INTEGRATED Order intake KM Q2 2019: MNOK 4 917 20% SOLUTIONS
Slide 24: Order intake distribution
3% MISSILE SYSTEMS 10% KAMS 10% 34% Order intake SPACE & SURVELLIANCE Q2 2020 AEROSTRUCTURES distribution 41% 4% LAND SYSTEMS INTEGRATED DFENCE SYSTEMS 7% Order intake KDA Q2 2020: MNOK 1 788 2% MISSILE SPACE & SYSTEMS Order intake KDA Q2 2019: MNOK 4 160 SURVELLIANCE 13% Q2 2019 LAND SYSTEMS 34% AE
Slide 25: 160 MNOK savings realized in Q2 2020
160 MNOK savings realized in Q2 2020 Realized cost savings P&L effect of cost savings relative to 2018, MNOK Q1 Q2 Q3 Q4 Q1 Q2 Area Comments to realized savings ‘19 ‘19 ‘19 ‘19 ‘20 ‘20 Footprint & delivery Effects of co-locations, production facility shutdowns and 3 11 12 15 34 45 streamlining restr
Slide 26: Strong cash balance and positive development in ROACE
Strong cash balance and positive development in ROACE Net debt and cash development Positive development in ROACE due to strong performance Cash and net debt (BNOK) Average capital employed (BNOK) and ROACE (%) 10.0 10.4 9.5 8.6 13.6% 5.7 10.7% 11.6% 4.5 3.0 3.7 2.6 10.25 0.7 0.3 0.4 7.89 6.87 (0.2)