Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q4 2020 Earnings Presentation
27 slides from Kongsberg Gruppen Asa's earnings presentation, 2021
Slide 1: Investor Presentation Q4 2020
INVESTOR PRESENTATION Q4 2020 Geir Håøy, President & CEO Gyrid Skalleberg Ingerø, EVP & Group 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 agreed w
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: Highlights 2020
Highlights 2020 ▪ Book/Bill of 1.13 and record-high order backlog ▪ BNOK 25.6 in revenues and BNOK 3.3 in EBITDA ▪ Solid operational performance and high degree of adaptability throughout the organization ▪ Successful divestment of Hydroid Inc. ▪ “Value Capture” program delivered above target ▪ Stro
Slide 4: Highlights fourth quarter 2020
Highlights fourth quarter 2020 - Strong order intake in defence and key milestones achieved ▪ 11.4 BNOK order intake, book/bill of 1.59 ▪ major defence orders ▪ record-high order backlog entering 2021 ▪ BNOK 7.1 in revenues and BNOK 0.95 in EBITDA ▪ Challenging newbuild market and COVID continue to
Slide 5: Important contracts signed in the quarter
Important contracts signed in the quarter NASAMS to Hungary Remote Weapon Stations (RWS) to the JSM to Japan British Army MIV program Propeller systems for five F110 frigates Pile Gripper Guidance System (PGGS) for Remote Tower System for Air Traffic to Spanish Navy the OHT Alfa Lift to MacGregor Co
Slide 6: Business update fourth quarter
Business update fourth quarter Decreased revenues in Maritime offset by High order intake in Defence and Dynamic digital twin® and SaaS business improved project mix and reduced cost continued solid operations continue to gain momentum • Market continues to be challenging with • Significant order in
Slide 7: Financial status
Financial status Gyrid Skalleberg Ingerø, EVP & Group CFO WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 7
Slide 8: 2020 order intake support book/bill above 1
2020 order intake support book/bill above 1 Strong order intake All-time-high backlog Book/bill Order intake (BNOK) (BNOK) 1.13 +11% 35.95 32.35 31.41 9.35 2023 → 28.82 (8%) 8.65 2022 16.71 15.88 17.96 2021 2018 2019 2020 2018 2019 2020 WORLD CLASS – Through people, technology and dedication KONGSBE
Slide 9: Order intake 2020
Order intake 2020 Kongsberg Maritime Kongsberg Defence & Aerospace Other Seaborne & Pax Other 6% 17% 14% F-35 6% Air Defence 38% 9% Offshore Space & Total order intake surveilliance 6% Total order intake BNOK 15.9 BNOK 11.9 After 44% market 9% Fishery and Special Purpose Vessels 13% Missiles 6% 6% N
Slide 10: 2020; Revenue growth and increased profitability
2020; Revenue growth and increased profitability Revenues EBITDA EBIT (BNOK) (BNOK, %) (BNOK, %) 25.61 12.7% 23.25 10% 9.1% 8.2% 13.81 7.4% 3.25 5.1% 4.4% 2.11 54% 1.91 1.13 1.03 85% 0.70 2018 2019 2020 2018 2019 2020 2018 2019 2020 • Revenue growth driven by growth in defence • Increased EBITDA in
Slide 11: Q4; Strong order intake and margins
Q4; Strong order intake and margins Order intake and backlog Revenues EBITDA EBIT Order Intake 2020 BNOK 28.82 (-8.8%) 2020 BNOK 25.61 (+10.2%) 2020 BNOK 3.25 (+53.8%) 2020 BNOK 1.91 (+85.1%) (BNOK) (BNOK) (BNOK, %) (BNOK, %) 35.95 32.35 11.38 7.94 7.15 13.3% 10.4% 8.1% 6.64 0.95 0.82 6.7% 0.53 0.58
Slide 12: Cashflow 2020
Cashflow 2020 Strong cashflow from operations and from divestment of Hydroid Inc. (BNOK) (0.59) 3.04 (2.28) (0.17) (0.31) 0.13 (0.78) (0.05) 7.42 3.29 (0.62) 0.10 5.65 Cash 1.1 EBITDA Tax paid Change in Dividends Investing Hydroid Interest & Dividend Treasury Repayment Translation Cash 31.12 working
Slide 13: Net Working Capital
Net Working Capital – Kongsberg Maritime 9.4% 7.9%* 9.4% 9.3% 7.5% 7.2%* 6.4% 6.8% 5.3%* Net Working 1.28 1.20 1.62 1.53 1.14 1.14 Capital 0.66 Q4 18 0.54 Q1 19 Q2 19 Q3 19 0.90 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 NWC in % of LTM revenue Working capital (BNOK) *inc. proforma CM Net Working Capital – Kongs
Slide 14: Kongsberg Maritime
Kongsberg Maritime Q3 2020 WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 14
Slide 15: KM order intake and backlog
KM order intake and backlog Order intake and book-to-bill Order backlog (BNOK) (BNOK) 12.40 12.11 11.31 11.83 11.39 0.88 0.92 2023 → 2.14 2022 0.73 3.86 3.82 8.33 2021 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q4 19 Q1 20 Q2 20 Q3 20 Q 4 20 2020 order intake BNOK 19.5 (book-to-bill 0.98) Book-to-bill Order inta
Slide 16: Reduced volume but increased margins in KM
Reduced volume but increased margins in KM Revenues EBITDA EBIT 2020 BNOK 16.32 (+10.4%) 2020 BNOK 1.53 (+52.4%) 2020 BNOK 0.72 (+101.7%) (BNOK) (BNOK, %) (BNOK, %) 5.26 10.7% 4.32 -18% 5.5% 7.8% 0.46 0.41 14% 4.5% 0.23 0.24 1% Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q4 19 Q1 20
Slide 17: Value Capture exceeding targets
Value Capture exceeding targets Program summary Realized cost savings P&L effect relative to 2018, MNOK • Realized cost savings of MNOK 640 in 2020, MNOK 195 in Q4 FY20: • Deck Machinery restructured and turned profitable • Consolidation and optimization of combined organization, 640 footprint and p
Slide 18: KDA
KDA KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or in pa rt, must include this
Slide 19: KDA Backlog supports growth
KDA Backlog supports growth Order intake Order backlog (BNOK) (BNOK) 2.81 23.48 20.15 19.98 19.66 7.35 18.76 8.23 2023 → 1.02 6.23 2022 2.51 9.02 2021 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 2020 Order intake BNOK 11.89 (book-to-bill 1.40) Book-to-bill WORLD CLASS – Through peopl
Slide 20: Revenue growth and strong EBITDA in KDA
Revenue growth and strong EBITDA in KDA Revenues EBITDA EBIT Revenue (BNOK) 2020 BNOK 8.50 (+17.4%) EBITDA (BNOK) and EBITDA 2020 BNOKmargin (%) 1.66 (+47.5%) EBIT (BNOK) and EBIT 2020margin (%) (59.5%) BNOK 1.16 (BNOK) (BNOK, %) (BNOK, %) 2.62 2.47 19.6% 6% 14.8% 18.1% 13.6% 0.51 0.45 15% 0.39 0.34
Slide 21: Associated Companies
Associated Companies KSAT PATRIA EBITDA % Revenue (MNOK) EBITDA (MNOK) KOG’s share of net profit (MNOK) EBIT % Revenue (EURm) EBIT (EURm) KOG’s share of net profit (MNOK) 42.2% 41.7% 41.0% 534 1,034 476 508 844 928 7.5% 1.5% 7.6% 356 387 424 36 40 8 2018 2019 2020 2018 2019 2020 104 112 120 80 (35)
Slide 22: Proposed dividends and share buyback
Proposed dividends and share buyback Total remuneration Details Total MNOK NOK/share ▪ Last day including: 06 May 2021 1,840 400 ▪ Ex. dividend date: 07 May 2021 ▪ Record date: 10 May 2021 900 ▪ Payment date: 20 May 2021 (“on or about”) ~540 Ordinary Special dividend Share Total dividend buy-back 3.
Slide 23: Outlook
OUTLOOK KONGSBERG DEFENCE KONGSBERG KONGSBERG & AEROSPACE MARITIME DIGITAL Current backlog secure growth in 2021 New building market expected to remain Continued roll-out of KogniTwin® and challenging Vessel Insight Efficient operations and increased scale found confidence to EBITDA target Healthy o
Slide 24: Q&A
INVESTOR PRESENTATION Q&A KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or in pa
Slide 25: Appendix
INVESTOR PRESENTATION Appendix KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or i
Slide 26: MNOK savings realized in Q4 2020
195 MNOK savings realized in Q4 2020 Realized cost savings P&L effect of cost savings relative to 2018, MNOK Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Area Comments to realized savings ‘19 ‘19 ‘19 ‘19 ‘20 ‘20 ‘20 ‘20 Footprint & delivery Effects of co-locations, production facility shutdowns 3 11 12 15 34 45 45 59 st
Slide 27: Cashflow fourth quarter
Cashflow fourth quarter Positive cashflow from operations and improved working capital Comments (BNOK) ▪ Positive cashflow from operations and working capital (0.17) (0.14) 0.73 (0.14) ▪ Improvement in working capital mainly due to 8.10 0.95 (1.83) prepayment from defence customers 7.42 (0.07) ▪ “Hy