Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q4 2014 Earnings Presentation
22 slides from Kongsberg Gruppen Asa's earnings presentation, Feb 6, 2015
Slide 1: Investor presentation
Investor presentation 4th Quarter/ Preliminary Annual Accounts 2014 | 6 February 2015
Slide 2: 2014 – Celebrations, challenges and opportunities
2014 – Celebrations, challenges and opportunities Oil & Gas demand & supply The first year of our next 200 changes A changing geopolitical • Celebrations, challenges and Oil companies take actions: climate opportunities • Phase #1: Protect cash – cut • Russia take over Crimea, cost UN, US, EU reacts
Slide 3: An eventful year
An eventful year © 2014 KONGSBERG – All rights reserved. 06.02.2015 WORLD CLASS - through people, technology and dedication Page 3
Slide 4: Highlights
Highlights • Another good year – Revenue growth, strong cash flow and record high order intake • Significantly strengthened position within defence industry • KM and KDS, representing more than 80 % of revenues, have strong performance • A solid Q4, but a more mixed underlying picture • Record high
Slide 5: Financial status Q4 - 2014
Financial status Q4 - 2014 Operating revenues 5 000 4 500 • Solid Q4 revenues, on par with 4 000 underlying Q4 2013 3 500 3 000 2 500 2 000 • KM with a strong 15.7 % revenue 1 500 growth compared with Q4-13 1 000 500 0 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 • KDS on
Slide 6: Financial status Q4 - 2014
Financial status Q4 - 2014 EBITDA 700 600 • Good quarter in KM influenced 500 by accruals and one-offs 400 • KDS continues to deliver strong 300 EBITDA-margins 200 • KPS EBITDA positively 100 influenced by reduced 0 provisions, underlying break- 600 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1
Slide 7: Financial status 2014
Financial status 2014 Operating revenues and EBITDA – per Segment 18 000 • 1.8 % growth in revenues 16 000 51 1 566 – 3.4 % adjusted for KSAT 14 000 4 276 – Solid 12.4 % EBITDA-margin 12 000 10 000 1 017 • KM grew 17.4% to record high 8 000 16 613 BNOK 9.7 with strong 14.9 % 6 000 9 703 EBITDA-margi
Slide 8: Financial status 2014
Financial status 2014 New orders – per business area 2014 25 000 2 240 20 000 15 000 9 018 802 10 000 22 097 5 000 10 038 0 KM KOGT KDS KPS KOG Group © 2014 KONGSBERG – All rights reserved. 06.02.2015 WORLD CLASS - through people, technology and dedication Page 8
Slide 9: Financial status 2014
Financial status 2014 Order backlog 24% Backlog of orders 25 000 26% 20 000 50% 15 000 2015 2016 2017=> 10 000 After sales and framework agreements not converted 5 000 into delivery contracts are not included in the backlog 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 New orders Q4 2014 New
Slide 10: Financial status Q4 2014
Financial status Q4 2014 Cash Flow Q4-14 2014 5000 6000 255 4500 139 107 5500 545 267 5000 211 4000 952 4500 3500 4000 2 060 3000 4 424 3500 2500 3000 4 424 2000 3 900 2500 1500 2000 1500 3 272 1000 1000 500 500 0 0 Cash IB EBITDA Q4 Change in Investments Net changes Cash UB Cash IB EBITDA Change in
Slide 11: Financial status Q4 2014
Financial status Q4 2014 Dividend Historical pay-out ratio Pay-out Pay-out (dividend per share/ earnings per share) ratio excl. ratio impairment 100% 93.0 % 90% Ordinary 4.25 42.7 % 58.4 % dividend 80% Extraordinary 5.00 50.3 % 68.7 % 70% dividend 60% Total dividend 9.25 93.0 % 127.1 % 51,3 % 50,0 %
Slide 12: Business Area Status
Business Area Status 06.02.2015 WORLD CLASS - through people, technology and dedication Page 12
Slide 13: Kongsberg Maritime
Kongsberg Maritime 2014 – Record high activity - 17.4 % revenue growth, all divisions well level, EBITDA and order above last year on revenues intake - MNOK 1,441 EBITDA, 14.9 % EBITDA-margin - Strong order intake in a competitive market, confirmation of market leading positions Strong backlog of or
Slide 14: Kongsberg Defence Systems
Kongsberg Defence Systems 2014 – Solid revenues, Strong execution of delivery program record high EBITDA-margin - Record high EBITDA-margin and several large contract BNOK 9.0 order intake including the largest so far, wins a BNOK 3.7 NASAMS-contract - JSM Phase III secured - Coastal Artillery phase
Slide 15: Kongsberg Protech Systems
Kongsberg Protech Systems 2014 – Lower revenues and Continued strong book/bill in Q4, 1.42 declined EBITDA, but Book/bill of 1.43 in 2014 added up to a MNOK growing order backlog 3,523 backlog of orders at year-end. - Deliveries of new systems declining but life cycle business is growing - 2014 deli
Slide 16: Kongsberg Oil & Gas Technologies
Kongsberg Oil & Gas Technologies 2014 – A challenging year Revenues declined both in Q4 and in 2014 in total - MNOK 99 negative EBITDA impacted by MNOK 45 in restructuring cost - MNOK 300 goodwill impairment KOGT enters 2015 with a cost base more adapted to the current market situation KOGT is a bus
Slide 17: “Diversity Delivers”
“Diversity Delivers” - a core element in our strategic thinking Geography Technologies Industries © 2014 KONGSBERG – All rights reserved. 06.02.2015 WORLD CLASS - through people, technology and dedication Page 17
Slide 18: Jump to the next curve
Guy Kawasaki…… JUMP TO THE NEXT CURVE
Slide 19: © 2014 KONGSBERG – All rights reserved.
© 2014 KONGSBERG – All rights reserved. 06.02.2015 WORLD CLASS - through people, technology and dedication Page 19
Slide 20: 2015 Outlook
2015 Outlook • Kongsberg Maritime – Continued high level of activity – Slower contracting of new vessels in the offshore market, good outlook for advanced merchant and subsea • Kongsberg Defence Systems – Strengthened position and sseveral important long-term opportunities – Strong backlog provides
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: kongsberg.com
kongsberg.com KONGSBERG