Kongsberg Gruppen Asa · OSL:KOG

Kongsberg Gruppen Asa — Q1 2017 Earnings Presentation

20 slides from Kongsberg Gruppen Asa's earnings presentation, May 12, 2017

  1. Slide 1: 1st Quarter 2017 Investor Presentation

    1ST QUARTER 2017 INVESTOR PRESENTATION, 12 MAY 2017 Geir Håøy, President & CEO Harald Aarø, Acting CFO © KONGSBERG - All rights reserved

  2. Slide 2: Long-term growth potential confirmed

    LONG-TERM GROWTH POTENTIAL CONFIRMED • Group revenues 14 % lower compared to Q1 16, mainly due to the continuing weak offshore market • KM has reduced Q1 OpEx by MNOK ~150 YoY • KM wins strategic important contracts within new technology areas • Long-term potential in defence confirmed – Germany dec

  3. Slide 3: Financial status

    FINANCIAL STATUS © KONGSBERG - All rights reserved

  4. Slide 4: Revenues Q1

    REVENUES Q1 4 567 4 234 4 222 4 340 4 009 4 125 3 952 3 721 3 428 Q1 revenues down 14.3 % YoY due to the continuing weak offshore market • KM revenues down 26.2 % compared to Q1 2016 – Decline in product deliveries, primarily to the Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 offshore market 2015 2016 2017 – Continu

  5. Slide 5: EBITDA Q1

    EBITDA Q1 493 515 486 419 408 Q1 EBITDA down 16.9 % YoY, mostly 386 334 339 volume driven Margin 9.1 • EBITDA margin 9.1 % compared to 9.4 % in Q1 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • KM margin lower YoY, but better than last two quarters - 40 2015 2016 2017 mainly due to cost reductions • KDS margin u

  6. Slide 6: Patria

    PATRIA REVENUES (EUR) EBITDA (EUR) 152 136 141 29 109 24 25 102 106 94 89 96 20 19 17 12 9 5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2015 2016 2017 BRIDGE FROM EBITDA TO KOG’S SHARE OF NET PROFIT Q1 EUR NOK EBITDA 9 Financial items, taxes, depreciation and amortisation −

  7. Slide 7: Orders Q1

    ORDERS Q1 4 970 3 993 4 067 3 749 3 491 3 451 3 388 New orders: 2 887 3 012 3 451 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 22 033 21 439 21 059 19 597 18 718 18 069 17 858 16 914 16 672 Backlog: 16 672 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 © KONGSBERG - All rights reserved 12.05.2017 WORLD CLAS

  8. Slide 8: Cash flow and net debt Q1

    CASH FLOW AND NET DEBT Q1 Operating cash flow MNOK 520 in Q1 • Working capital reduced by MNOK 404 – MNOK ~100 positive cash flow from FX hedge roll-over effects Q1 2017 2016 181 72 144 339 Gross interest bearing debt 4 090 4 083 Cash and short-term deposits 2 192 1 888 2 192 1 888 Net interest bear

  9. Slide 9: Business update

    BUSINESS UPDATE © KONGSBERG - All rights reserved

  10. Slide 10: Kongsberg Maritime

    KONGSBERG MARITIME • Continued negative impact from the weak offshore market • Strong order intake in Q1 – book/bill 1.22 – Underwater segment strong – Norwegian Navy order in Q1 for four AUV’s • New organization in effect from 1 January: Vessel Systems, Solutions, Subsea, Global Customer Support •

  11. Slide 11: Walk to work: first contract on K-Walk secured with Olympic Shipping

    WALK TO WORK: FIRST CONTRACT ON «K-WALK» SECURED WITH OLYMPIC SHIPPING • K-Walk is a gangway system enabling transportation of personell and goods between a vessel and an offshore installation, for example a wind mill • Integrates with the vessels dynamic positioning system and Kongsberg Information

  12. Slide 12: Yara Birkeland: the world's first autonomous container feeder

    «YARA BIRKELAND»: THE WORLD’S FIRST AUTONOMOUS CONTAINER FEEDER • Full electric and zero emission • With «Birkeland», Yara cuts 40,000 trips with fossil fuel based road transportation annually • KONGSBERG to deliver all key technologies – Integration of sensor, control, communication and electrical

  13. Slide 13: Kongsberg Defence Systems

    KONGSBERG DEFENCE SYSTEMS • Long-term potential in defence confirmed – Germany decides on NSM  >BNOK 10 potential for KONGSBERG over the next decades – Teaming agreement with thyssenkrupp and Atlas for submarines  JV to be the intl. exclusive supplier of combat systems for all tkMS’ submarines  >

  14. Slide 14: Kongsberg Protech Systems

    KONGSBERG PROTECH SYSTEMS • Largest contract in the quarter with the Swiss armed forces for an updated configuration of PROTECTOR RWS with new advanced capabilities • Delivered approximately 150 weapon stations to six different customers in Q1 • Assembly of MCT-30 moved to Johnstown, PA. Last delive

  15. Slide 15: Patria

    PATRIA Revenues on par YoY – lower net results • Lower results primarily due to delays in some projects in the armoured wheeled vehicles business • Good order intake in the quarter, especially in maintenance © KONGSBERG - All rights reserved 12.05.2017 WORLD CLASS - through people, technology and de

  16. Slide 16: Invitation to breakfast seminar

    INVITATION TO BREAKFAST SEMINAR Time: 24 May 2017 08.00-09.00 Venue: Thon Conference Vika Atrium, Oslo Sign up: By 19 May on www.kongsberg.com/ir • Hosted by Harald Aarø, Group EVP Business Development and Acting CFO • Presentation and Q & A on market and industry trends • Breakfast will be served f

  17. Slide 17: Outlook

    OUTLOOK © KONGSBERG - All rights reserved

  18. Slide 18: 2017 Outlook

    2017 OUTLOOK KONGSBERG MARITIME • Weak offshore market expected to continue • Positive development within integrated solutions expected also in 2017 • Further adjustments of cost base considered on an ongoing basis • Revenues expected to decline compared to 2016 KONGSBERG DEFENCE SYSTEMS • Strong po

  19. Slide 19: 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

  20. Slide 20: World Class

    WORLD CLASS THROUGH PEOPLE, TECHNOLOGY AND DEDICATION © KONGSBERG - All rights reserved

Kongsberg Gruppen — Q1 2017 Earnings Presentation on 6ix