Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q4 2017 Earnings Presentation
23 slides from Kongsberg Gruppen Asa's earnings presentation, Feb 7, 2018
Slide 1: 4th Quarter 2017 / Preliminary Annual Accounts 2017
4TH QUARTER 2017 / PRELIMINARY ANNUAL ACCOUNTS 2017 INVESTOR PRESENTATION, 7 FEBRUARY 2018 Geir Håøy, President & CEO Gyrid Skalleberg Ingerø, EVP & CFO © KONGSBERG - All rights reserved
Slide 2: Highlights Q4
HIGHLIGHTS Q4 • Solid order intake – NASAMS to Lithuania and Indonesia – CROWS III • Strong cash flow • Cost- and organizational initiatives are giving positive impact – KM revenues stabilizing, margins improving • Solid operations – Major projects on plan across the group Dividend Revenues: EBITDA:
Slide 3: Highlights 2017
HIGHLIGHTS 2017 DELIVERING POSITIONING Australia partnering Core business, JSM and downselects Diversity delivers NASAMS air defence ADAPTING POSITIONING INNOVATE Major restructuring in KM Submarine and missile Important milestones collaboration with for new KDS+KPS = KDA Germany technology areas ©
Slide 4: Financial Status
FINANCIAL STATUS © KONGSBERG - All rights reserved
Slide 5: Financial Key Takeaways for 2017
FINANCIAL KEY TAKEAWAYS FOR 2017 Solid operations delivering EBITDA-improvement and strong cash flow Revenues MNOK 14 490 EBITDA MNOK 1 279 - 8,6 % 8.8 % margin • KM down 13.6 %, mainly related to • Strong project execution “traditional” offshore projects • Successful restructuring • KDA on par with
Slide 6: Historical Development
HISTORICAL DEVELOPMENT EBITDA 3 000 2 385 2 294 2 500 2 142 2 060 2 000 1 784 REVENUES 1 500 1 217 1 279 18 000 17 032 16 323 16 613 15 845 15 128 15 652 1 000 16 000 14 490 14 000 500 12 000 10 000 0 2011 2012 2013 2014 2015 2016 2017 8 000 6 000 NEW ORDERS 4 000 25 000 2 000 22 097 0 20 000 2011 2
Slide 7: Revenues Q4
REVENUES Q4 4 567 4 234 4 222 4 340 4 009 4 125 3 952 3 721 3 733 3 757 3 428 3 279 Q4 revenues down 4.9 % YoY • KM revenues down 8.8 % YoY, down 13.6 % YTD – Decreased revenues from “traditional” offshore • KDA revenues down 1.6 % YoY, on par YTD Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 –
Slide 8: Orders Q4
ORDERS Q4 4 970 5 015 3 993 4 067 3 749 3 491 3 451 New orders 3 388 2 887 3 012 2017: 2 535 2 429 13 430 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 22 033 21 439 21 059 19 597 18 718 18 069 17 858 16 914 16 672 15 629 15 308 14 298 Backlog: 15 629 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 20
Slide 9: New Orders by BA/Division 2017
NEW ORDERS BY BA/DIVISION 2017 KM KDA 16 % 19 % 20 % 27 % 4% 3% 25 % 18 % 32 % 36 % Protech Systems Missiles Vessel Systems Solutions Aerostructures Integrated Defence Systems Subsea Global Customer Support Defence Communications Space & Surveillance © KONGSBERG - All rights reserved
Slide 10: EBITDA Q4
EBITDA Q4 493 515 486 459 419 • 408 Profitability improving 386 334 339 – Improvement in KM continues 274 207 2017- – Continued solid KDA-margins Margin 8.8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • MNOK 25 special items 2015 -40 2016 2017 • KM EBITDA-margin 13.0 % KM 244 • KDA EBITDA-margin 14.2 % EBI
Slide 11: Patria
PATRIA REVENUES (EUR) EBITDA (EUR) 152 159 29 136 141 24 25 109 116 102 106 20 21 94 96 19 89 87 17 14 12 11 9 5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2015 2016 2017 • Performance catched up towards year-end • Revenues up 12.8 % YoY • Revenues and EBI
Slide 12: Cash Flow and Net Debt Q4 and 2017
CASH FLOW AND NET DEBT Q4 AND 2017 YTD Strong cash flow in Q4 450 1 620 853 528 • Working capital improvement, among others, due to 1 279 contract related cash in-flow in KDA 2 956 1 888 • MNOK 300 certificate loan redeemed in Q4 Cash Q4 2016 EBITDA Change in other operating Dividend paid Net change
Slide 13: Improved Debt Position
IMPROVED DEBT POSITION Healthy maturity profile NET INTEREST BEARING DEBT DEBT MATURITY PROFILE 3 000 2 667 2 782 3,00 1 000 1 000 2 500 2 195 2,50 1 898 1 991 2 000 1 642 2,00 1 500 1,50 550 450 1 000 1,00 384 500 0,50 250 0 0,00 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 -500 -0,50 -504 2016 2018 201
Slide 14: Special Items in EBITDA Q4 and 2017
SPECIAL ITEMS IN EBITDA Q4 AND 2017 Q4 2017 Restructuring costs (KM, KDA) −25 −196 Buy-back of FX hedges + released provisions 0 −60 Total1) −25 −256 1) List is not exhaustive © KONGSBERG - All rights reserved WORLD CLASS - through people, technology and dedication Page 14
Slide 15: Dividend
DIVIDEND “ Dividends shall over time constitute between 40 and 50 per cent of the company’s ordinary net profit after tax, future capital requirements taken into account The Board proposes for the annual general meeting on 16 May 2018 a dividend of NOK 3,75 per share HISTORICAL PAYOUT RATIOS 127,1 %
Slide 16: Business Update
BUSINESS UPDATE © KONGSBERG - All rights reserved
Slide 17: Business Area Update
BUSINESS AREA UPDATE KM: • Organizational adaptions are becoming visible in Revenues stabilizing, P/L improved profitability • Aftermarket improving • Diversified market exposure with markets in different cycles o Positive development for markets such as research, passenger ferries, fisheries and ma
Slide 18: NASAMS – 30 years of development, delivery and positioning
NASAMS – 30 years of development, delivery and positioning WORLD #1 AIR DEFENCE IN ITS CLASS NORWEGIAN ARMED EXPORT AND CONTINOUS DEVELOPMENT DELIVERY FORCES IDENTIFY NEED UPGRADES In the late 80’s the NASAMS was developed in Delivered and fully Indonesia and Lithuania the Norwegian Air Force needed
Slide 19: Develop – Deliver – Position
DEVELOP – DELIVER – POSITION More than 40 years experience from developing combat management systems. Exclusively together with ThyssenKrupp positioning for the next 30 years Building on the experience from the Penguin missile to develop the Naval Strike Missile (NSM) and Joint Strike Missile (JSM).
Slide 20: Outlook
OUTLOOK © KONGSBERG - All rights reserved
Slide 21: Outlook
OUTLOOK GROUP • Good overall outlook for KONGSBERG • Positive effects from restructuring • Increased order intake expected going forward KONGSBERG MARITIME • Strong position and growth within complex, integrated solutions • Revenues expected to stabilize in 2018 • Profitability expected to improve f
Slide 22: 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 23: World Class
WORLD CLASS THROUGH PEOPLE, TECHNOLOGY AND DEDICATION © KONGSBERG - All rights reserved