Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q1 2016 Earnings Presentation
22 slides from Kongsberg Gruppen Asa's earnings presentation, Apr 29, 2016
Slide 1: 1st Quarter 2016 Investor Presentation
1ST QUARTER 2016 INVESTOR PRESENTATION 29 APRIL 2016 Photo: ESA
Slide 2: A Quarter of Strategic Milestones
A QUARTER OF STRATEGIC MILESTONES • KONGSBERG buys 49.9% of Patria – Creating a leading Nordic defence partnership • Launching Kongsberg Digital to be at the forefront of the digital shift • First contract in a multi-phase Stryker program signed in KPS • 2.5% growth in revenues compared to Q1 2015 •
Slide 3: Financial Status
FINANCIAL STATUS © KONGSBERG - All rights reserved
Slide 4: Revenues Q1
REVENUES Q1 4 418 4 567 4 263 4 234 4 222 4 340 3 941 3 991 4 009 Q1 revenues up 2.5% from 2015 • KM with satisfactory activity level – down 5.1% compared to Q1 2015 – Increasingly influenced by oil and gas downturn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016 • KDS revenues up 11.0% from Q1 2015 • KPS
Slide 5: EBITDA Q1
EBITDA Q1 614 545 486 493 Q1 EBITDA MNOK 408, margin 9.4% 446 455 386 419 408 Margin • Underlying EBITDA margin in KM 11.4 % 9.4 % – Change in project mix and challenging oil and gas market conditions impact margins – MNOK 25 in non-recurring restructuring costs in Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014
Slide 6: Non-Recurring Items Q1
NON-RECURRING ITEMS Q1 KM KDS KPS OTHER GROUP Customer clarifications +38 +38 Restructuring costs −25 −21 −46 Total1 −25 - +38 −21 −8 1) List is not exhaustive © KONGSBERG - All rights reserved 29.04.2016 WORLD CLASS - through people, technology and dedication Page 6
Slide 7: Orders Q1
ORDERS Q1 8 565 NEW KM 2 972 ORDERS 5 714 4 541 4 970 3 993 3 749 KDS 385 3 277 3 388 New orders: 2 887 3 749 KPS 223 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Other 162 2014 2015 2016 21 096 21 020 22 033 21 439 21 059 20 580 19 597 19 344 18 718 2018+ 26 % Life-cycle business and Backlog: 2016 framework agreemen
Slide 8: Cash Flow Q1
CASH FLOW Q1 Negative cash flow in Q1, MNOK 439 408 520 243 • Project execution in KDS draws on substantial 84 prepayments received in 2014 1 807 1 368 • MNOK 33 temporary cash outflow from currency hedges in Q1, MNOK 1,167 in 2015 Cash IB EBITDA Change in other operating related Investments Net cha
Slide 9: Business Update
BUSINESS UPDATE © KONGSBERG - All rights reserved
Slide 10: Business Areas
BUSINESS AREAS KONGSBERG MARITIME Q1 • Book/bill of 1.3 in Q1, leveraging a diversified portfolio Operating revenues 2 478 • Good order intake within e.g. AUV’s, advanced gas carriers and fishery EBITDA 264 • High activity in Merchant Marine and non-offshore related parts of Subsea • Increased cance
Slide 11: Significant Change in Project Mix in KM
SIGNIFICANT CHANGE IN PROJECT MIX IN KM LEVERAGING A DIVERSIFIED PORTFOLIO ORDER INTAKE: Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 2,975 2,526 2,385 1,870 2,972 EBITDA MARGIN: 18,9 % Offshore vessels 14,4 % 15,5 % 13,5 % 12,8 % 10,8 % 10,7 % 8,1 % 8,5 % Production & storage Non-offshore Q1 Q2 Q3 Q4 Q1
Slide 12: Serving the Complete Value Chain
KONGSBERG SPACE & SURVEILLANCE: SERVING THE COMPLETE VALUE CHAIN Applying core technologies to develop advanced products and services for the complete space value chain • Launcher & space mechanisms • Satellite electronics • Navigation and Search & Rescue • Ground station services with unique infras
Slide 13: Growth and Opportunities
Video: ESA KONGSBERG SPACE & SURVEILLANCE GROWTH AND OPPORTUNITIES REVENUES SPACE & SURVEILLANCE, MNOK* 774 817 • New and significant contracts on earth observation programs - MetOp/EUMETSAT 729 • Several contracts and opportunities in the European program for the establishment of a European capacit
Slide 14: Kongsberg Digital
SOFTWARE AND SERVICES • KONGSBERG Smart data solutions for increased efficiency in operations: predictive, real-time and simulation analysis • One Production Field - One Integrated Production Model DIGITAL LedaFlow and K-Spice • Flow Assurance Services - assuring flow from reservoir to customer chal
Slide 15: Well Established Clients and Innovative Solutions in Existing and New Markets
WELL ESTABLISHED CLIENTS AND INNOVATIVE SOLUTIONS IN EXISTING AND NEW MARKETS SMART DATA LONG SOLUTIONS EXPERIENCE FOR REDUCED ESTABLISHING WITHIN DRILLING TIME POSITIONS IN NEW AUTOMATION AND TRAINING AND WELL ROBOTICS SIMULATORS COST MARKETS ARTIFICIAL KONGSBERG has delivered KONGSBERG’s ships SIT
Slide 16: ~ @ 4,. ., 57°08.976, 005° 15265, 2010-04-25 08:47:41
~ @ 4,. 387 ., 57°08.976, 005° 15265, 2010-04-25 08:47:41
Slide 17: Kongsberg Buys 49.9% of Patria
KONGSBERG BUYS 49.9% OF PATRIA – CREATING A LEADING NORDIC DEFENCE PARTNERSHIP • KONGSBERG has taken an important strategic step to accelerate growth and profitability in our defence business • Establishing a true Nordic defence partnership between Patria, Nammo and KONGSBERG • The partnership will
Slide 18: Patria Headquartered in Finland
HEADQUARTERED IN FINLAND 2 800 EMPLOYEES • Leading maintenance provider in the Nordics REVENUES EUR 428 MILLION • Internationally successful supplier of armored vehicles ORDER BACKLOG EUR 1,056 MILLION • World leading supplier of ammunition and OPERATIONS IN 8 COUNTRIES rocket motors through subsidi
Slide 19: Outlook
OUTLOOK © KONGSBERG - All rights reserved
Slide 20: 2016 Outlook
2016 OUTLOOK KONGSBERG MARITIME • Significant drop in contracting in the offshore vessel market, will impact revenues and margins • Other segments stable or growing • Non-recurring restructuring costs in 2016 currently estimated to MNOK 75-125, further adjustments considered on an ongoing basis • In
Slide 21: 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 22: World Class
WORLD CLASS - THROUGH PEOPLE, TECHNOLOGY AND DEDICATION © KONGSBERG - All rights reserved