Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q2 2013 Earnings Presentation
43 slides from Kongsberg Gruppen Asa's earnings presentation, Aug 14, 2013
Slide 1: Investor presentation 2nd Quarter 2013
Investor presentation 2nd Quarter 2013 14th August 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 Q2 2013 • Status - Business Areas • Updates • Appendix Speakers: • Walter Qvam – CEO • Hans-Jørgen Wibstad – CFO /3/ 14-August-13 WORLD CLASS – through people, technology and dedication © 2013 KONGSBERG – All rights reserved.
Slide 4: Highlights
Highlights • Revenues up 4.7% in H1 2013 from H1 2012 • Strong revenue growth in Kongsberg Maritime with 13.9% in H1 and continued high order intake with book/bill 1.24 • Strong operating cash flow in Q2 2013 with MNOK 1 019 • Excellent test results for Joint Strike Missile & Naval Strike Missile •
Slide 5: Financial status 2013
Financial status 2013 Operating revenues 4 500 4 000 3 500 • Growth continues 3 000 2 500 2 000 – Q2 growth 4.2 % from Q2 2012 1 500 1 000 – H1 growth 4.7 % from H1 2012 500 0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 – Growth in KM and KOGT more 9 000 than compensates reduced Q2 8
Slide 6: Financial status 2013: half year operating revenues per business area
Financial status 2013 Half year operating revenues per business area KOGT 516 • Strong 13,9 % growth in H1 in Kongsberg KPS Maritime 1 447 H1 2013 KM 4 113 • Delivery- and development programs on track in Kongsberg Defence Systems KDS 2 051 • Kongsberg Protech Systems is experiencing reductions in t
Slide 7: Financial status 2013: EBITDA
Financial status 2013 EBITDA 700 600 • 2Q 2013 EBITDA MNOK 513 500 (MNOK 525) 400 300 • H1 EBITDA MNOK 1 013 200 (MNOK 1075) 100 0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 • Higher H1 EBITDA in KM 1 200 • Lower H1 EBITDA in KOGT and 1 000 defence areas, particularly KPS 800 600 40
Slide 8: Financial status 2013: half year EBITDA per business area
Financial status 2013 Half year EBITDA per business area KOGT 6 • Increased EBITDA in Kongsberg Maritime KPS 263 • Kongsberg Defence Systems on track H1 2013 – High level of activity in JSM-development but KM project between two contract phases impacts KDS 577 173 revenues and EBITDA • Reduced volum
Slide 9: Financial status Q2 2013: orders and backlog
Financial status Q2 2013 Quarterly trends in orders Backlog of orders 20 000 18 000 23% 16 000 14 000 12 000 41% 10 000 8 000 6 000 36% 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 Q2- 2013 New orders per quarter KOGT 4 500 505 4 000 3 500 KPS 3
Slide 10: Financial status Q2 2013: Cash Flow
Financial status Q2 2013 Cash Flow Q2-13 Q2-12 H1-13 H1-12 2012 EBITDA 513 525 1,013 1,075 2,294 Change in other operating related items 506 (765) 83 (1,981) (2,087) Cash flow from operating activities 1,019 (240) 1,096 (906) 207 Acquisition of fixed assets (99) (132) (165) (234) (523) Acquisition o
Slide 11: Financial status Q2 2013: Cash Flow
Financial status Q2 2013 Cash Flow 3600 3300 3000 111 506 450 28 2700 2400 513 2100 1800 1500 1200 2 630 2 144 900 600 300 0 Cash IB EBITDA Q2 Change in other Investments Dividend paid Net changes in Cash UB operating related financing activities items and exchange rates Q2-13 Q1-13 2012 Cash and sh
Slide 12: Summary key figures
Summary key figures Q2 2013 Q2 2012 H1 2013 H1 2012 2012 4,097 3,932 8,130 7,768 15,652 Operating revenues 513 525 1,013 1,075 2,294 EBITDA 12.5% 13.4% 12.5% 13.8% 14.7% EBITDA margin 397 422 782 862 1,840 EBIT 395 420 771 857 1,809 EBT 2.38 2.57 4.65 5.20 10.91 EPS Equity % - - 36.4% 38.1% 38.6% Ba
Slide 13: Kongsberg Maritime
“Status se at odiat ek bate tae nis fe hd KONGSBERG
Slide 14: Kongsberg Maritime Q2 2013
Kongsberg Maritime Q2 2013 Quarterly trends in operating revenues and EBITDA Operating revenues Revenues 2012 2 500 2 000 Subsea 1 500 23% 1 000 Merchant 17% Offshore 500 60% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 EBITDA Revenues 2013 350 300 250 200 Subsea 25% 150 100 Merchant 50 12%
Slide 15: Kongsberg Maritime Q2 2013: orders
Kongsberg Maritime Q2 2013 Quarterly trends in orders Backlog of orders 8 000 7 000 19% 6 000 5 000 42% 4 000 3 000 39% 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 YTD 2013 3 000 2 500 Subsea 2 000 22% 1 500 1 000 Merchant 500 1
Slide 16: Highlights Kongsberg Maritime
Highlights Kongsberg Maritime • Continued strong order intake – Book/Bill ratio at 1.15 in Q2 and 1.24 YTD • “Full Picture” delivery contracts to 11 drilling units • Close to 100 OSV-contracts signed in Q2, 200 YTD • Important confirmations in seismic market – Seismic Vessel System contract worth mo
Slide 17: Well positioned for the years to come
Well positioned for the years to come • Market leader in mission critical technologies and systems at sea • Full Picture® - integrated solutions • Expanding scope – handling, package engineering • Further expanding our strong subsea product portfolio • Hugin, Remus Seaglider • Subsea hydro acousti
Slide 18: Kongsberg Defence Systems
Kongsberg Defence Systems Status
Slide 19: Kongsberg Defence Systems Q2 2013
Kongsberg Defence Systems Q2 2013 Quarterly trends in operating revenues and EBITDA Revenues 2012 Operating revenues Comm. 1 400 5% 1 200 1 000 Missile 27% 800 600 Intergrate 400 d Def Aerost 36% 10% 200 Naval sys 0 22% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 EBITDA Revenues 2013 160 140
Slide 20: Kongsberg Defence Systems Q2 2013: orders
Kongsberg Defence Systems Q2 2013 Quarterly trends in orders Backlog of orders 9 000 8 000 28% 7 000 6 000 5 000 42% 4 000 3 000 2 000 30% 1 000 2013 2014 2015=> 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 New orders YTD 2013 New orders per quarter 2 000 1 800 Comm 8% 1 600 1 400 1 200 Inte
Slide 21: Highlights Kongsberg Defence Systems
Highlights Kongsberg Defence Systems • Royal Norwegian Navy (RNoN) has conducted two successful firings with the Naval Strike Missile (NSM) – Part of RNoN’s evaluation program – Included “live warhead” firing • KONGSBERG and Lockheed Martin has successfully completed fit check of Joint Strike Missil
Slide 22: Satellite surveillance – a growing market
Satellite surveillance – a growing market • Increasing demand from oil companies • By 2021, 263 new satellites will be launched – KONGSBERG is in a good position • In Q2 Kongsberg Satellite Services KONGSBERG is the world's largest supplier of won the EU project “Meolut” which services involving the
Slide 23: Modern product portfolio and significant market opportunities
Modern product portfolio and significant market opportunities • A modern and advanced portfolio of products and systems – Anti-ship missiles – Air-defence system – Command control system for submarines and naval vessels – Communication technologies • Significant contract opportunities – Several majo
Slide 24: Kongsberg Protech Systems
Kongsberg Protech Systems Status
Slide 25: Kongsberg Protech Systems Q2 2013
Kongsberg Protech Systems Q2 2013 Quarterly trends in operating revenues and EBITDA 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 / 25 / 14-August-13 WORLD CLASS –
Slide 26: Kongsberg Protech Systems Q2 2013: orders
Kongsberg Protech Systems Q2 2013 Quarterly trends in orders Backlog of orders 6 000 5 000 27% 4 000 33% 3 000 2 000 40% 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 27: Highlights Kongsberg Protech Systems
Highlights Kongsberg Protech Systems • Contracts awarded despite slow market: – MNOK 149 for the Nordic program – MNOK 100 contract in Croatia – MNOK 100 framework agreement with France (Q3) • Continued effort to commercialise Medium Caliber Remote Weapon Station – Development is finished and the sy
Slide 28: Positive in long term but weaker in the short to medium term
Positive in long term but weaker in the short to medium term • Global #1 in the market for remotely operated weapon stations – Has won all the major contracts awarded in this market – Market is currently slow • Deliveries to the largest customer have been lower than expected and the trend will conti
Slide 29: Kongsberg Oil & Gas Technologies
Kongsberg Oil & Gas Technologies Status
Slide 30: Kongsberg Oil & Gas Technologies Q2 2013
Kongsberg Oil & Gas Technologies Q2 2013 Quarterly trends in operating revenues and EBITDA 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 / 30 / 14-August-13 WORLD CLASS
Slide 31: Kongsberg Oil & Gas Technologies Q2 2013: orders
Kongsberg Oil & Gas Technologies Q2 2013 Quarterly trends in orders Backlog of orders 600 3% 500 32% 400 300 65% 200 100 2013 2014 2015=> 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
Slide 32: Highlights Kongsberg Oil & Gas Technologies
Highlights Kongsberg Oil & Gas Technologies • Good order intake in Q2 – Book/Bill ratio at 1.08 • Large part of order intake related to renewal of software development contracts • Integration of Kongsberg Nemo and Advali as planned • Acquisition of Apply Nemo is well received in the oil & gas market
Slide 33: Improved positioning and scaling in a strong market
Improved positioning and scaling in a strong market • KOGT delivers niche-systems and services to a strong market • From restructuring of product portfolio to scaling – Modern and high tech product portfolio – Increased contract complexity and size – Acquisitions expands and complements product offe
Slide 34: Outlook
Outlook In recent years, KM has built up very good market positions which it is expected to maintain in H2 as well. The strong order income over the past year gives a good foundation for KM’s revenues in H2 2013. KDS has several major long term delivery programmes in the medium to late engineering a
Slide 35: Appendix
Appendix
Slide 36: 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. / 36 / 14-August-13 WORLD CLASS – thro
Slide 37: 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 38: Financial status at 30 June 2013: Income statement
Financial status at 30 June 2013 Income statement MNOK. Q2-13 Q2-12 H1-13 H1-12 2012 Operating revenues 4 097 3 932 8 130 7 768 15 652 Operating expenses (3 584) (3 407) (7 117) (6 693) (13 358) Earnings before interest, tax, depreciation and amortisation 513 525 1 013 1 075 2 294 (EBITDA) Depreciat
Slide 39: Financial status at June 2013: Balance sheet
Financial status at 30 June 2013 Balance sheet MNOK 30 Jun.13 31 Mar.13 31 Dec.12 Property, plant and equipment 2 640 2 615 2 602 Intangible assets 3 133 3 138 2 750 Other non-current assets 288 279 280 Total non-current assets 6 061 6 032 5 632 Short-term assets 8 381 8 463 8 133 Cash and short-ter
Slide 40: Shares and shareholders
Shares and shareholders 20 largest shareholders (2 August 2013) Share price performance Shareholders # shares Stake 1 State repr. by the Ministry of Trade and Industry 60 001 600 50.00% - 2 Arendals Fossekompani 9 552 796 7.96% - Index1) KOG compared with indices from 1 January 2012
Slide 41: Currency
Currency Hedging portfolio at 30 June 2013 (values in MNOK) Hedging portfolio 7 000 6 000 Orders: All orders signed in foreign currencies are 5 000 hedged, eliminating currency risk 4 000 3 000 Prognosis: Prior to signature, probable contracts are also 2 000 hedged pursuant to the guidelines sti
Slide 42: 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 • Q3 31 October E-mail: hans.jorgen.wibstad@kongsberg.com Capital Markets Day 2013 Jan Erik Hoff • 07 November VP Investor Relati
Slide 43: kongsberg.com
kongsberg.com KONGSBERG