Kongsberg Gruppen Asa · OSL:KOG

Kongsberg Gruppen Asa — Q1 2018 Earnings Presentation

19 slides from Kongsberg Gruppen Asa's earnings presentation, May 15, 2018

  1. Slide 1: Investor Presentation 1st quarter 2018

    INVESTOR PRESENTATION 1st quarter 2018 15/05/2018 Geir Håøy, President & CEO Gyrid Skalleberg Ingerø, CFO KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly

  2. Slide 2: Highlights Q1

    3 554 2 939 Highlights Q1 REVENUES NEW ORDERS  Temporary lower revenues within missiles and air- defence, stable revenues in KM Q1  Margins impacted by KM project mix, restructuring of Maritime Simulation and increased development activity in KDI  Important MoU signed in Qatar 286 8.0% EBITDA EBI

  3. Slide 3: Financial Status

    KONGSBERG Financial Status

  4. Slide 4: Financial Key Takeaways Q1

    REVENUES NEW ORDERS 3 554 2 939 Financial Key MNOK MNOK Takeaways MNOK 14 814 MNOK 286 EBITDA ORDER BACKLOG Stable revenues and Q1 book/bill 1.06 in KM, temporary revenue 2018 NET INTEREST decline in KDA ROACE BEARING DEBT Reduced capital employed YoY, small increase in Q1 8.8 % 601 MNOK MNOK 7 908

  5. Slide 5: Revenues Q1

    4 340 3 721 3 554 REVENUES Q1 Q1 revenues down 4.5 %  KM revenues up 1.6 % YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018  KDA revenues down 10.9 %  Temporary lower revenues within missiles and air defence KDA KM  Newly signed orders in early phase 1 796 Other 1 585 173 WORLD CLASS – Through peop

  6. Slide 6: EBITDA Q1

    408 Q1 2018 MARGIN 339 286 EBITDA Q1 8.0%  Reduced EBITDA in KDA Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 due to volume effects 2016 2017 2018  KM project mix towards integrated concepts in KDA Q1 KM  Negative EBITDA-effects from Maritime 134 172 Other -20 Simulation (KDI) 7.5 % MARGIN 10.9 % MARGIN WORLD CLAS

  7. Slide 7: New Orders Q1

    Q1 2018 3 749 ORDER BACKLOG 3 451 2 939 NEW ORDERS Q1 14 814  KM Book/bill 1.06 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1  Continued good ordering 2016 2017 2018 within marine robotics and fishery KM  Positive signals from KDA certain merchant segments 1 900 798  KDA order-intake fluctuating WORLD CLASS – Thro

  8. Slide 8: Q1 New orders by Division: Kongsberg Maritime

    20% 20% VESSEL SOLUTIONS Q1 SYSTEMS New orders by Division 24% Kongsberg Maritime GLOBAL CUSTOMER SUPPORT* 36% SUBSEA** *GCS does not include Subsea aftermarket ** Subsea also includes Subsea aftermarket WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of

  9. Slide 9: Q1 New orders by Division: Kongsberg Defence & Aerospace

    8% MISSILE SYSTEMS 16% 25% SPACE & AEROSTRUCTURES Q1 SURVEILLANCE New orders by Division Kongsberg Defence & Aerospace 11% 16% 24% DEFENCE COMMUNICATIONS PROTECH SYSTEMS INTEGRATED DEFENCE SYSTEMS WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Propri

  10. Slide 10: Cash flow Q1

    286 291 - Cash flow Q1 146 66 • MNOK 217 cash reduction • Share buy-back to employee share 2 956 2 739 programme • Increased working capital Cash Q4 2017 EBITDA Change in other Net changes in Investments and Cash Q1 2018 operating related financing capitalised R&D items activities and exchange rates

  11. Slide 11: Strong balance sheet

    Strong balance sheet Q1 2018 2017 Gross interest bearing debt 3 340 3 340 Cash and short-term deposits 2 739 2 956 Net interest bearing debt 601 384 Equity ratio 35.9 % 35.6 % ROACE 8.8 % 9.1 % WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprieta

  12. Slide 12: Debt position

    Debt position Healthy maturity profile NET INTEREST BEARING DEBT DEBT MATURITY PROFILE 1 000 1 000 1 898 550 450 250 601 -504 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016 2017 2018 WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Sta

  13. Slide 13: Business Update

    KONGSBERG Business Update

  14. Slide 14: Business Update: Kongsberg Maritime

    Business Update Kongsberg Maritime  Orders from traditional merchant KM vessels improving - Bulk Positive order - Container intake trend - LNG and stable revenues  Subsea segments such as fishery, marine robotics and underwater sensors continue to deliver WORLD CLASS – Through people, technology a

  15. Slide 15: Business Update: Kongsberg Defence & Aerospace

    Business Update Kongsberg Defence & Aerospace  Important new orders for F-35 KDA parts and Hamina Class (Patria) Deliveries on  Signed MoU in Qatar, major contract potential plan, temporary lower revenues  NSM to Malaysia signed in April for missiles and air-defence WORLD CLASS – Through people,

  16. Slide 16: MoU signed in Qatar

    MoU signed in Qatar - Indicating long-term technology development programs within defence, maritime industry and digitalization  Selected to deliver bid for program with BNOK 15 + potential over next 8-10 years - KDA to deliver Communication, digitalization and tower solutions - Expected to generat

  17. Slide 17: Business updates: Kongsberg Digital, Patria and Space

    Business updates Kongsberg Digital, Patria and Space KDI Patria Space  Increased development  10 % revenue increase  Solid quarter in KSAT, activity in initiatives such 26 % EBITDA as kognifai and digital  MEUR 0.7 EBITDA improvement twin improvement  Challenging 2018-start  Expanding capacity

  18. Slide 18: Outlook

    Outlook Last years’ actions implemented will contribute to overall profitability improvements in 2018 KM expects revenue stabilization and improved profitability in 2018 compared to 2017 KDA has solid prospects for new orders for nearly all product areas KDI will continue to invest significantly in

  19. Slide 19: Thank you

    Thank you www.kongsberg.com

Kongsberg Gruppen — Q1 2018 Earnings Presentation on 6ix