Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q4 2016 Earnings Presentation
26 slides from Kongsberg Gruppen Asa's earnings presentation, Feb 8, 2017
Slide 1: 4th Quarter 2016 Investor Presentation
4TH QUARTER 2016 INVESTOR PRESENTATION, 8 FEBRUARY 2017 Geir Håøy, President & CEO Hans-Jørgen Wibstad, CFO Photo: Petter Brenni Gulbrandsen / Forsvaret © KONGSBERG - All rights reserved
Slide 2: 2016 – An Eventful Year
2016 – AN EVENTFUL YEAR • Group revenues 7 % lower compared to last year, mainly due to the weak offshore market • Several strategic decisions and wins – Important positioning in defence – Patria – MCT-30 Medium Caliber – Kongsberg Digital – Positioning KM for new market conditions Revenues: EBITDA:
Slide 3: Financial Status
FINANCIAL STATUS © KONGSBERG - All rights reserved
Slide 4: Revenues Q4
REVENUES Q4 4 418 4 234 4 222 4 567 4 263 4 340 3 941 3 991 4 009 4 125 3 952 3 428 Q4 revenues down 13.5 %, offshore downturn impacting revenues • KM revenues down 23.6 % compared to Q4 2015, offshore down ~35 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 – Non-offshore related Subsea solid 2014 2015 2016
Slide 5: EBITDA Q4
EBITDA Q4 614 545 493 515 486 MNOK 334 EBITDA in Q4, impacted by 446 455 386 419 408 334 restructuring costs Margin 8.5 % • MNOK 61 in restructuring costs in KM and ‘Other’ • EBITDA margin 10.0 % excluding restructuring costs Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 - 40 2014 2015 2016 • Solid profitabil
Slide 6: Patria
PATRIA REVENUES (EUR) EBITDA (EUR) 152 136 141 29 109 24 25 102 96 94 89 20 19 17 12 5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2015 2016 BRIDGE FROM EBITDA TO KOG’S SHARE OF NET PROFIT 1.10. – 31.12. 24.5. – 31.12. EUR NOK EUR NOK EBITDA 25 60 Financial items, taxes, depreciation a
Slide 7: Non-Recurring Items Q4
NON-RECURRING ITEMS Q4 KM KDS KPS OTHER GROUP Restructuring costs −44 −17 −61 Total1 −44 −17 −61 1) List is not exhaustive © KONGSBERG - All rights reserved 08.02.2017 WORLD CLASS - through people, technology and dedication Page 7
Slide 8: Orders Q4
ORDERS Q4 21 096 20 580 21 020 22 033 21 439 21 059 • Book-to-bill 0.76 in Q4 19 344 19 597 18 718 18 069 17 858 16 914 – KM 0.56 full year 0.92 Backlog: – KDS 1.01 full year 0.88 – KPS 0.79 full year 0.81 16 914 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • 2016 order intake BNOK 14.3 vs. 2014 2015 2016 15
Slide 9: Cash Flow Q4 and 2016
CASH FLOW Q4 AND 2016 MNOK 639 cashflow in Q4 2016 Q4 • Solid cash flow from operations 16 115 404 • MNOK 100 investment in eSmart Systems AS 334 MNOK 81 cashflow in 2016 1 888 1 249 • Cash flow from operations improved by BNOK 1.9 from 2015 • Investments and M&A activity financed by new bonds/loans
Slide 10: Debt Structure
DEBT STRUCTURE • 3 BNOK bond issues in 2016, partly used to repay existing debt 482 1 000 1 000 • In addition to the bond loans, KONGSBERG has a 1.5BNOK revolving 550 450 257 250 credit facility and a 500 MNOK overdraft facility, both undrawn at year end 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 11: Full Year Key Figures
FULL YEAR KEY FIGURES REVENUES EBITDA 16 613 17 032 2 060 15 845 1 784 1 217 2014 2015 2016 2014 2015 2016 NEW ORDERS ORDER BACKLOG 22 097 21 020 19 597 16 914 15 238 14 319 2014 2015 2016 2014 2015 2016 © KONGSBERG - All rights reserved 08.02.2017 WORLD CLASS - through people, technology and dedica
Slide 12: Non-Recurring Items 2016
NON-RECURRING ITEMS 2016 KM KDS KPS OTHER GROUP Write-down inventory −150 −150 Write-down currency hedges −130 −130 Write-down other assets −74 −74 Restructuring costs −127 −44 −171 Sale of shares in KBC +54 +54 Customer clarifications +38 +38 Total1 −481 - +38 +10 −433 1) List is not exhaustive © K
Slide 13: Dividend
DIVIDEND “ Dividends shall over time constitute between 40 and 50 per cent of the company’s ordinary net profit after tax, future capital requirements taken into account The Board proposes for the annual general meeting on 26 April 2017 a dividend of NOK 3.75 per share HISTORICAL PAYOUT RATIOS 127,1
Slide 14: Business Update
BUSINESS UPDATE © KONGSBERG - All rights reserved
Slide 15: Kongsberg Maritime
KONGSBERG MARITIME Q4 2016 • Continued negative impact from oil • Hit by weak oil and offshore market and offshore related business • Major initiatives to adapt to changing • Low order intake overall – improved markets order intake within both merchant – New concepts launched and subsea related acti
Slide 16: Strengthening KM's Competitive Edge
STRENGTHENING KM’S COMPETITIVE EDGE FULL REVITALIZATION TURMOIL COST-EFFECTIVE SOLUTIONS OF KM'S COMPETITIVE IN OFFSHORE MARKETS DEMANDED BY CUSTOMERS POSITION © KONGSBERG - All rights reserved 08.02.2017 WORLD CLASS - through people, technology and dedication Page 16
Slide 17: New KM Organisation in Effect from 1 January 2017
NEW KM ORGANISATION IN EFFECT FROM 1 JANUARY 2017 OFFSHORE MERCHANT MARINE SUBSEA EMERGING BUSINESS 49 % 17 % 27 % 7% GLOBAL CUSTOMER VESSEL SYSTEMS SOLUTIONS SUBSEA SUPPORT ~25 % ~20 % ~25 % ~30 % PRODUCTS TECHNOLOGY SALES & MARKETING © KONGSBERG - All rights reserved 08.02.2017 WORLD CLASS - throu
Slide 18: Kongsberg Defence Systems
KONGSBERG DEFENCE SYSTEMS Q4 2016 • Continued solid performance and • Solid performance throughout the strong margins year • Upgrade contracts for both • Strategic entry into Patria Norwegian submarines and frigates • Strong order intake within Space, • Framework-agreement on helicopter Naval and De
Slide 19: Kongsberg Protech Systems
KONGSBERG PROTECH SYSTEMS Q4 2016 • Low margin level – as expected • World leading position confirmed • Serial deliveries for new low-profile • More than 800 weapon stations RWS to US Army delivered in 2016 • Eight MCT-30 delivered to customer • First contract for MCT-30, BNOK 0.6 by Q4 to US Army •
Slide 20: Patria
PATRIA 4 % growth in revenues from Q4 2015 • Good profitability in 2016, especially within armoured wheeled vehicles and maintenance • 4.1 percentage points higher EBITDA margin in 2016 compared to 2015 • Net income improved by 63 % from 2015 © KONGSBERG - All rights reserved 08.02.2017 WORLD CLASS
Slide 21: Investor Visit to Patria
INVESTOR VISIT TO PATRIA Date: 15-16 March 2017 Place: Tampere and Jämsä, Finland Sign up by: 17 February • Meet Patria’s CEO and top management • Presentation of Patria’s businesses • Tour of facilities Practical information and registration on www.kongsberg.com/ir © KONGSBERG - All rights reserved
Slide 22: Outlook
OUTLOOK © KONGSBERG - All rights reserved
Slide 23: 2017 Outlook
2017 OUTLOOK KONGSBERG MARITIME • Weak oil and offshore market expected to continue • Positive development within integrated concept solutions expected also in 2017 • Revenues expected to decline compared to 2016 KONGSBERG DEFENCE SYSTEMS • Strong position in selected niches and several important op
Slide 24: Responsible Business Conduct
RESPONSIBLE BUSINESS CONDUCT TECHNOLOGY FOR VALUES & CULTURE COMPLIANCE SUSTAINABILITY LICENSE TO OPERATE © KONGSBERG - All rights reserved 08.02.2017 WORLD CLASS - through people, technology and dedication Page 24
Slide 25: 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 26: World Class
WORLD CLASS THROUGH PEOPLE, TECHNOLOGY AND DEDICATION © KONGSBERG - All rights reserved