Kongsberg Gruppen ASA · OSL:KOG

Kongsberg Gruppen ASA — Q1 2005 Earnings Presentation

26 slides from Kongsberg Gruppen ASA's earnings presentation, May 4, 2005

  1. Slide 1: Q1 2005 – World Class through people, technology and dedication

    Q1 2005 WORLD CLASS – through people, technology and dedication KONGSBERG May 4, 2005 1

  2. Slide 2: Highlights

    Highlights ƒ Operating revenues and Q1 performance on a par with 2004 ƒ Overall performance slightly weaker than last year ƒ Offshore & Merchant Marine continues to show improvement – Continued good influx of new orders ƒ Defence & Aerospace off to a slow start – The communications segment saw a dip

  3. Slide 3: Key figures

    Key figures (MNOK) Q1 2005 Q1 2004 2004 Operating revenues 1 577 1 526 6 439 EBITA 44 57 243 EBITA % 2.8 3.7 3.8 EBT 26 63* 193 Earnings after tax 16 46 118 Earnings per share 0.54 1.51 4.03 New orders 1 602 1 485 5 947 *) Includes a gain of MNOK 31 on the sale of shares in Kitron ASA. All figures h

  4. Slide 4: Deviation in operating revenues compared with 2004 (MNOK)

    KONGSBERG Deviation in operating revenues compared with 2004 (MNOK) Offshore & Merchant Marine 86 Defence & Aerospace -6 Yachting & Fishery -34 (100) (80) (60) (40) (20) 0 20 40 60 80 100 KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 4

  5. Slide 5: Deviation in EBITA compared with 2004 (MNOK)

    KONGSBERG Deviation in EBITA compared with 2004 (MNOK) Offshore & Merchant Marine 9 Defence & Aerospace -11 Yachting & Fishery -11 (100) (80) (60) (40) (20) 0 20 40 60 80 100 KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 5

  6. Slide 6: Operating revenues (accumulated)

    Operating revenues (accumulated) 6 439 4 412 3 001 1 526 1 577 Q1 Q2 Q3 Q4 2004 2005 KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 6

  7. Slide 7: EBITA (accumulated)

    EBITA (accumulated) 243 85 57 44 Q1 -13 Q2 Q3 Q4 2004 2005 KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 7

  8. Slide 8: Segment information

    Segment information KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 8

  9. Slide 9: Offshore & Merchant Marine – EBITA (accumulated)

    Offshore & Merchant Marine EBITA (accumulated) ƒ Operating revenues: MNOK 742 (MNOK 656) ƒ EBITA margin: 6.7% (6.3%) ƒ New orders: MNOK 951 (MNOK 912) 251 174 103 41 50 Q1 Q2 Q3 Q4 2004 2005 KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 9

  10. Slide 10: Offshore & Merchant Marine – Volume trend

    Offshore & Merchant Marine Volume trend 1000 900 800 700 600 500 400 300 200 100 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 New orders Operating revenues ƒ Brisk market activity – Process automation – contracts in the North Sea and abroad – Dynamic positioning – increasing ma

  11. Slide 11: Yachting & Fishery – EBITA (accumulated)

    Yachting & Fishery EBITA (accumulated) ƒOperating revenues: MNOK 210 (MNOK 244) ƒ EBITA margin: 0% (4.5%) 36 32 13 11 0 Q1 Q2 Q3 Q4 2004 2005 KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 11

  12. Slide 12: Yachting & Fishery

    Yachting & Fishery ƒ Assumes a lasting reduction in price levels in the yachting market ƒ Initiatives – New product launches to face the competition – Simplify and streamline the distribution structure – Efficiency improvement measures implemented in the fishery segment as from 2005 ƒ Market prospec

  13. Slide 13: Defence & Aerospace – EBITA (accumulated)

    Defence & Aerospace EBITA (accumulated) ƒ Operating revenues: MNOK 621 (MNOK 627) ƒ EBITA margin: -0.8% (1%) ƒ New orders: MNOK 424 (MNOK 320) ƒ A high proportion of the results are expected in the latter half of the year Q1 -5 Q2 Q3 Q4 6 -31 -121 -143 2004 2005 KONGSBERG May 4, 2005 13

  14. Slide 14: Performance profile – Average EBITA 2002-2004

    Performance profile Average EBITA 2002 - 2004 300 250 200 Defence & Aerospace 150 Offshore & Merchant Marine Yachting & Fishery 100 50 0 Q1 Q2 Q3 Q4 KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 14

  15. Slide 15: Defence & Aerospace

    Defence & Aerospace ƒ Signed contracts will increase profits as the year progresses ƒ More international orders for weapons control systems (RWS) – Finland – Australia – USA (April) ƒ Major launch of Raytheon/KONGSBERG anti- aircraft solutions in the US – Cooperation with Raytheon has resulted in NO

  16. Slide 16: Financial review

    ƒFinancial review –IFRS effects –Balance sheet –Cash flow KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 16

  17. Slide 17: IFRS

    IFRS ƒ From 1 January 2005, the Group is reporting in accordance with IFRS ƒ Most significant changes in the figures for 2004 – Pension expenses reduced by MNOK 20 – Amortisation of goodwill reduced by MNOK 88 ƒ Significant changes in equity at 1 January 2005 – Unrecognised actuarial gains/losses in

  18. Slide 18: Change in equity due to adoption of IFRS

    Change in equity due to adoption of IFRS EQuity 31 December 2004 NGAAP 1 812 Equity transactions: Pensions (482) Change in fair value (IAS 39) 191 Reclassification of dividends 60 (233) Income statement items: Amortisation of goodwill 88 Reduced pension expenses 20 Tax effect, income statement items

  19. Slide 19: Balance sheet

    Balance sheet 31March 1 Jan. 31 Dec. 31 Dec. (MNOK) 2005 2005 2004 2004 IFRS IFRS IFRS NGAAP Assets 6 312 6 333 5 933 6 043 Net interest-bearing 1 208 1 101 1 101 1 096 debt Equity 1 637 1 662 1 471 1 812 Equity % 25.9 26.2 24.8 30.0 Debt/EBITDA 2.9 2.5 2.5 2.6 KONGSBERG ‹date/time› © KONGSBERG, 26

  20. Slide 20: Cash flow analysis (MNOK)

    Cash flow analysis (MNOK) ƒ Net interest-bearing debt 1 January (1 101) ƒ EBITDA 92 ƒ Change in current assets/current liabilities (246) ƒ Change in pre-payments from customers 109 ƒ Cash flow from operations (45) ƒ Investments in fixed assets (25) ƒ Interest and other (37) ƒ Net cash flow (107) ƒ N

  21. Slide 21: Prospects for 2005

    Prospects for 2005 KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 21

  22. Slide 22: Prospects for 2005

    Prospects for 2005 ƒ Several of KONGSBERG's markets are developing favourably. ƒ The Board belives there will continue to be risk inherent in the Missiles segment in 2005, although the successful NSM test results and the signing of a transition contract have mitigated the risk inherent in the develo

  23. Slide 23: Prospects for 2005 (cont.)

    Prospects for 2005 (cont.) ƒ The Yachting & Fishery markets are in flux. The yachting market is characterised by increasing pressure on prices. The fishery market is encumbered by uncertainty related to the fishing fleet's investment level. Measures have been implemented to address these challenges.

  24. Slide 24: Other matters

    Other matters KONGSBERG ‹date/time› © KONGSBERG, 26 August 2003 24

  25. Slide 25: New Board of Directors

    New Board of Directors 1. CEO Finn Jebsen, Oslo (new) 2. Executive Chairman of the Board Benedicte Berg Schilbred, Tromsø (re-elected) 3. Self-employed Siri Hatlen, Oslo (re-elected) 4. Chair of the Board Erik Must, Oslo (new) 5. CFO John Giverholt, Oslo (new) 6. Jan Erik Hagen, Kongsberg (re-electe

  26. Slide 26: World Class – through people, technology and dedication

    WORLD CLASS – through people, technology and dedication KONGSBERG May 4, 2005 26

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