Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q1 2013 Earnings Presentation
45 slides from Kongsberg Gruppen Asa's earnings presentation, Apr 30, 2013
Slide 1: Investor presentation 1st Quarter 2013
Investor presentation 1st Quarter 2013 30th April 2013
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 Q1 2013 • Status - Business Areas • Updates • Appendix Speakers: • Walter Qvam – CEO • Hans-Jørgen Wibstad – CFO /3/ 30-April-13 WORLD CLASS – through people, technology and dedication © 2012 KONGSBERG – All rights reserved.
Slide 4: Solid quarter with strong maritime order intake
Solid quarter with strong maritime order intake • Operating Revenues MNOK 4 033 and EBITDA MNOK 500 • Strong order intake and high activity level in Kongsberg Maritime – Strong order intake drilling vessels, LNG, OSV – Book/bill at 1.19 for merchant division – good in a challenging market • Good act
Slide 5: Change in reporting as from 2013
Change in reporting as from 2013 • EBITDA – As from 2013, KONGSBERG has changed the focus of its reporting from EBITA to EBITDA. This is being done to align with the market standard for listed and comparable companies • Kongsberg Oil & Gas Technologies: – As from 2013, Kongsberg Oil & Gas Technologi
Slide 6: Financial status Q1 2013: operating revenues
Financial status Q1 2013 Quarterly trends in operating revenues Revenues Q1-12 KOGT 172 KPS 646 4 500 KM 1 843 4 000 KDS 3 500 1 178 3 000 2 500 Revenues Q1-13 2 000 KOGT Other 239 0 1 500 1 000 KPS 787 500 KM 2 008 0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 KDS 988 /6/ 30-April-13 WORL
Slide 7: Financial status Q1 2013: EBITDA
Financial status Q1 2013 Quarterly trends in EBITDA EBITDA Q1-12 KOGT 9 KPS 700 143 600 KM 289 500 KDS 111 400 300 EBITDA Q1-13 200 KPS 148 100 KM 0 284 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 KDS 69 /7/ 30-April-13 WORLD CLASS – through people, technology and dedication © 2012 KONGSBE
Slide 8: Financial status Q1 2013: orders
Financial status Q1 2013 Quarterly trends in orders Backlog of orders 20 000 18 000 20% 16 000 14 000 33% 12 000 10 000 8 000 47% 6 000 4 000 2 000 2013 2014 2015=> 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 Backlog of orders Q1- 2013 New orders per quarter KOGT 4 500 484 4 000 3 500 KPS 3
Slide 9: Financial status Q1 2013: Cash Flow
Financial status Q1 2013 Cash Flow Q1-13 Q1-12 2012 EBITDA 500 550 2,294 Change in other operating related items (423) (1,216) (2,087) Cash flow from operating activities 77 (666) 207 Acquisition of fixed assets (66) (102) (523) Acquisition of subsidiaries and non-controlling interests (329) (13) (6
Slide 10: Financial status Q1 2013: Cash Flow
Financial status Q1 2013 Cash Flow 3300 3000 2700 500 423 2400 411 31 2100 1800 1500 1200 2 509 2 144 900 600 300 0 Cash IB EBITDA Q1 Change in other Investments Net changes in Cash UB operating related items financing activities and exchange rates Q1-13 2012 Cash and short-term deposits 2,144 2,509
Slide 11: Summary key figures
Summary key figures Q1 2013 Q1 2012 2012 Operating revenues 4,033 3,836 15,652 EBITDA 500 550 2,294 EBITDA margin 12.4% 14.3% 14.7% EBIT 385 440 1,840 EBT 376 437 1,809 EPS 2.28 2.63 10.91 Equity % 38.8% 39.9% 38.6% Backlog of orders 16,733 17,667 16,523 New orders 3,885 3,724 14,605 Book/bill 0.96
Slide 12: Kongsberg Maritime
“Status se at odiat ek bate tae nis fe hd KONGSBERG
Slide 13: Maritime Q1 2013: revenues and EBITDA
Kongsberg Maritime Q1 2013 Quarterly trends in operating revenues and EBITDA Operating revenues Revenues 2012 2 500 2 000 1 500 Subsea 25% 1 000 Merchant Offshore 20% 55% 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 EBITDA Revenues 2013 350 300 250 Subsea 200 23% 150 100 Merchant 50 12%
Slide 14: Maritime Q1 2013: orders
Kongsberg Maritime Q1 2013 Quarterly trends in orders Backlog of orders 8 000 7 000 16% 6 000 37% 5 000 4 000 3 000 47% 2 000 1 000 2013 2014 2015=> 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders per quarter New orders 2013 3 000 2 500 Subsea 2 000 25% 1 500 1 000 500 Merchant Offsh
Slide 15: High activity and good order intake
High activity and good order intake • Strong order intake continues in 2013 – Book/Bill ratio at 1.33 in Q1 • Several new contracts in the advanced drilling segment • Good order intake for deliveries to OSV- and constructions vessels • Confirmed position in LNG-market • Book/bill at 1.19 for merchan
Slide 16: Kongsberg Defence Systems
Kongsberg Defence Systems Status
Slide 17: Defence Systems Q1 2013: revenues and EBITDA
Kongsberg Defence Systems Q1 2013 Quarterly trends in operating revenues and EBITDA Revenues 2012 Operating revenues Comm. 1 400 5% 1 200 1 000 Missile 29% 800 Intergrate 600 Def 28% 400 Aerost 200 10% Naval sys 0 24% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 EBITDA Revenues 2013 160 140 Co
Slide 18: Defence Systems Q1 2013: orders
Kongsberg Defence Systems Q1 2013 Quarterly trends in orders Backlog of orders 9 000 8 000 26% 7 000 6 000 5 000 34% 4 000 3 000 2 000 40% 1 000 2013 2014 2015=> 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders 2013 New orders per quarter 2 000 1 800 Comm 1 600 12% 1 400 1 200 1 000 8
Slide 19: Delivery projects on track, pursuing significant market opportunities
Delivery projects on track, pursuing significant marked opportunities • Pursuing significant opportunities in several markets • Contract for delivery of upgrade to the Royal Norwegian Air Force NASAMS II air defence system worth 300 MNOK • Large delivery programs on schedule – Deliveries of Naval St
Slide 20: Kongsberg Protech Systems
Kongsberg Protech Systems Status
Slide 21: Protech Systems Q1 2013: revenues and EBITDA
Kongsberg Protech Systems Q1 2013 Quarterly trends in operating revenues and EBITA 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 / 21 / 30-April-13 WORLD CLASS – t
Slide 22: Protech Systems Q1 2013: orders
Kongsberg Protech Systems Q1 2013 Quarterly trends in orders Backlog of orders 6 000 5 000 24% 4 000 19% 3 000 2 000 57% 1 000 0 2013 2014 2015=> 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 201
Slide 23: Promising prospects in a slower market
Promising prospects in a slower market • Continued high market activity – Several potential prospects both for existing and new products • Both in existing and new markets • Decisions take longer time than before • Continued effort to broaden product offering – Medium Caliber Remote Weapon Station –
Slide 24: Kongsberg Oil and Gas Technologies
Kongsberg Oil and Gas Technologies Status
Slide 25: Oil & Gas Technologies Q1 2013: revenues and EBITDA
Kongsberg Oil & Gas Technologies Q1 2013 Quarterly trends in operating revenues and EBITA Operating revenues 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 / 25 / 30-April-13 WORLD CLASS –
Slide 26: Oil & Gas Technologies Q1 2013: orders
Kongsberg Oil & Gas Technologies Q1 2013 Quarterly trends in orders Backlog of orders 600 8% 500 400 300 92% 200 100 2013 2014 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders per quarter 500 450 400 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 / 26
Slide 27: Building market position in a new strategic area
Building market position in a new strategic area • Good order intake in Q1 – Book/Bill ratio at 1.23 • Large part of order intake related to renewal of software development contracts • World leading in certain data and simulation niches • International customers, high activity level • High market ac
Slide 28: KONGSBERG going forward
KONGSBERG going forward
Slide 29: Outlook
Outlook KONGSBERG has strong positions in the maritime, offshore and defence markets in addition to an exciting positioning towards the oil & gas market. The foundation for the operations in 2013 is solid – Kongsberg Maritime is expected to maintain it’s strong market positions, and the level of act
Slide 30: Oil & Gas Technologies
Kongsberg Oil & Gas Technologies
Slide 31: Oil & Gas Technologies
Kongsberg Oil & Gas Technologies • Kongsberg Oil & Gas Technologies (KOGT) is a supplier of high-tech solutions to the oil & gas industry • Provides engineering services, innovative subsea products and software decision support systems through innovative technologies and advanced engineering skills
Slide 32: Oil & Gas Technologies: our business today
Kongsberg Oil & Gas Technologies Our business today Software decision support systems and Subsea products & technology (55 %) services (45%) Collaboration Collaboration Work processes Work processes Analytics and Analytics and Decision support decision support Integration Integration Infrastructure
Slide 33: Oil & Gas Technologies: revenue split
Kongsberg Oil & Gas Technologies Revenue split (including Nemo) Drilling – 18 % Field Development – 45 % Installation – 13 % Production – 24 % Drilling Software – SiteCom, Nemo Seaflex – Simulation Software – Well Advisor Subsea systems Riser Management Ledaflow, K-Spice System (RMS) Australia; 10%
Slide 34: Subsea solutions and services
Kongsberg Oil & Gas Technologies Subsea solutions and services Early Phase Engineering Project Execution Asset Operations • Pipeline engineering • Structures and systems • Process integrity • Riser engineering • Riser & pipeline products • Asset integrity • Flow assurance • Thor tie-in system • Spec
Slide 35: Software Systems - Decision Support Systems and Services
Kongsberg Oil & Gas Technologies Software Systems- Decision Support Systems and Services Based on open industry standards – enabling full integration Ledaflow – multi phase flow assurance K-Spice – Dynamic Process and Control Simulation SiteCom – real time drilling solution Riser Management System (
Slide 36: Appendix
Appendix
Slide 37: Determined, Innovative, Collaborative, Reliable
DETERMINED INNOVATIVE COLLABORATIVE RELIABLE What we start we finish. We relentlessly pursue We collaborate as individuals and We are reliable people. We do not give in. improvements, new ideas as an organisation. We are responsible citizens. and new solutions. / 37 / 30-April-13 WORLD CLASS – throu
Slide 38: 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 39: Financial status at 31 March 2013: income statement
Financial status at 31 March 2013 Income statement MNOK. Q1-13 Q1-12 2012 Operating revenues 4 033 3 836 15 652 Operating expenses (3 533) (3 286) (13 358) Earnings before interest, tax, depreciation and amortisation 500 550 2 294 (EBITDA) Depreciation (82) (72) (323) Earnings before interest, tax a
Slide 40: Financial status at 31 March 2013: balance sheet
Financial status at 31 March 2013 Balance sheet MNOK 31 Mar.13 31 Dec.12 30 Sept.12 Property, plant and equipment 2 615 2 602 2 546 Intangible assets 3 138 2 750 2 743 Other non-current assets 279 280 285 Total non-current assets 6 032 5 632 5 574 Short-term assets 8 463 8 133 8 487 Cash and short-t
Slide 41: Shares and shareholders
Shares and shareholders 20 largest shareholders (22 April 2013) 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 indices from 1 January 3 National
Slide 42: Currency
Currency Hedging portfolio at 31 March 2013 (values in NOK) 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 also 2 000 hedged pursuant to the guidelin
Slide 43: The Board of Directors of Kongsberg Gruppen ASA
The Board of Directors of Kongsberg Gruppen ASA Finn Jebsen (63) – Chair of the Board Irene Waage Basili (45) – Director Self-employed Chief Executive Officer GC Rieber Shipping AS CEO of Orkla from 2001 to 2005 Other directorships: Odfjell SE and Reef Subsea Other directorships: Chair of
Slide 44: Financial calendar and Investor Relations contacts
Financial calendar and Investor Relations contacts Financial calendar 2013 IR contacts Hans-Jørgen Wibstad Publication of quarterly figures CFO Telephone: +47 32 28 39 90 • Q2 16 August E-mail: hans.jorgen.wibstad@kongsberg.com • Q3 31 October Jan Erik Hoff Capital Markets Day 2013 VP Investor Relat
Slide 45: kongsberg.com
kongsberg.com KONGSBERG