Kongsberg Gruppen Asa · OSL:KOG
Kongsberg Gruppen Asa — Q2 2016 Earnings Presentation
21 slides from Kongsberg Gruppen Asa's earnings presentation, Aug 26, 2016
Slide 1: 2nd Quarter 2016 Investor Presentation
2ND QUARTER 2016 INVESTOR PRESENTATION | 26 AUGUST 2016 Geir Håøy, President and CEO Hans-Jørgen Wibstad, CFO
Slide 2: Highlights
HIGHLIGHTS • Stable activity level and good profitability • Closing the Patria transaction – consolidated from 24 May • Financing package well received in the market • Proactively adapting to changing markets • Solid and diversified order intake Revenues: EBITDA: New orders: 4 125 515 3 491 © KONGSB
Slide 3: Financial Status
FINANCIAL STATUS © KONGSBERG - All rights reserved
Slide 4: Revenues Q2
REVENUES Q2 4 418 4 234 4 222 4 567 4 263 4 340 3 941 3 991 4 009 4 125 Q2 revenues in line with recent quarters • KM with satisfactory activity level – down 5.9% compared to Q2 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 – Continuing to adapt to the weak offshore- 2014 2015 2016 market – Merchant and non-of
Slide 5: EBITDA Q2
EBITDA Q2 614 545 493 515 486 Solid Q2 EBITDA – strong 446 455 386 419 408 Margin performance in Patria 12.5 % • EBITDA margin in KM at 10.0 % – Change in project mix and challenging oil and Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 gas market conditions impact margins 2014 2015 2016 • Good profitability in KDS
Slide 6: Non-recurring items Q2
NON-RECURRING ITEMS Q2 KM KDS KPS OTHER GROUP Restructuring costs −5 −7 −12 Sale of shares in KBC +54 +54 Total1 −5 - - +47 +42 1) List is not exhaustive © KONGSBERG - All rights reserved 26.08.2016 WORLD CLASS - through people, technology and dedication Page 6
Slide 7: Patria (49.9%)
PATRIA (49.9%) REVENUES (EUR) EBITDA (EUR) 254 48 225 44 202 17 H1 H2 H1 H1 H2 H1 2015 2016 2015 2016 Bridge from EBITDA to KOG’s share of Net profit 24.5. – 30.6. EUR NOK EBITDA 18 Visit Financial items, taxes, depreciations and amortisation −4 patria.fi for Earnings after tax 14 full interim KONGS
Slide 8: Revenues and EBITDA H1
REVENUES AND EBITDA H1 H1 revenues on a par with H1 2015 REVENUES 8 576 • KM down 5.5%, influenced by the oil and gas 8 204 8 409 8 456 8 465 downturn • KDS revenues up 4.0%, overall solid development • KPS revenues significantly increased from H1 2015 H1 H2 H1 H2 H1 H1 EBITDA up 5.8% from 2015 2014
Slide 9: Non-recurring items H1
NON-RECURRING ITEMS H1 KM KDS KPS OTHER GROUP Customer clarifications +38 +38 Restructuring costs −30 −28 −58 Sale of shares in KBC +54 +54 Total1 −30 - +38 +26 +34 1) List is not exhaustive © KONGSBERG - All rights reserved 26.08.2016 WORLD CLASS - through people, technology and dedication Page 9
Slide 10: Orders Q2
ORDERS Q2 8 565 NEW KM 2 030 ORDERS 5 714 4 541 4 970 3 993 3 749 KDS 712 3 277 3 388 3 491 New orders: 2 887 3 491 KPS 608 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Other 141 2014 2015 2016 21 096 21 020 22 033 21 439 21 059 20 580 19 597 19 344 18 718 18 069 2018+ 30 % 2016 Life-cycle business and Backlog: 35
Slide 11: Cash Flow Q2 and H1
CASH FLOW Q2 AND H1 Positive cash flow in Q2, MNOK 68 Q2 • Net increase long term debt MNOK 3,239 • Share purchase Patria MEUR 283.5 2 761 2 757 • Ordinary dividend payout MNOK 510 515 451 • Project execution in KDS draws on substantial prepayments received in 2014 1 368 1 436 • Other normal working
Slide 12: Interest Bearing Debt Q2
INTEREST BEARING DEBT Q2 EUR NOK 243 9 Bridge facility Patria transaction 290 2 000 Repayment on bridge facility −130 4 103 1 491 Balance, bridge facility, Q2 160 → 1 491 864 Interest bearing Bridge facility New bond Buy-back Other Interest bearing Launch of bond issue 2 000 debt 16Q1 Patria loans K
Slide 13: Business Update
BUSINESS UPDATE © KONGSBERG - All rights reserved
Slide 14: Business Areas
BUSINESS AREAS KONGSBERG MARITIME Q2 H1 • Resilient order intake, leveraging a diversified portfolio, book/bill H1 1.03 Operating revenues 2 360 4 838 • High activity in Merchant Marine and non-offshore related parts of Subsea EBITDA 235 499 • YTD cancellations MNOK 110 vs. MNOK 180 in H1 2015 • The
Slide 15: Proactively Adapting to Changing Markets
PROACTIVELY ADAPTING TO CHANGING MARKETS CEASING NEW OPPORTUNITIES CAPACITY ADJUSTMENTS EXPANDING SCOPE OTHER INITIATIVES World-wide capacity adjustments in KOGT and KM • Kongsberg Digital Permanent staff • Patria • ~400 last 1.5 years • Introducing unique, integrated Improvement programs • Further
Slide 16: Patria: Good performance in H1 2016
KONGSBERG OWNERSHIP 49.9% Good performance in H1 2016 • Higher activity and improved profitability compared to H1 2015 • Signed important contract with UAE for delivery of armoured vehicles • Extraordinary strong June results, especially within armoured vehicles Leading expertise in armoured wheeled
Slide 17: Kongsberg Digital
KONGSBERG DIGITAL Fully operational from 1 July • Executing the strategy of developing new solutions and establish positions in existing and new markets • Delivering solutions to major international companies within the oil & gas and maritime industry – Increase in software & services and simulation
Slide 18: Outlook
OUTLOOK © KONGSBERG - All rights reserved
Slide 19: 2016 Outlook
2016 OUTLOOK KONGSBERG MARITIME • Significant drop in contracting in the offshore vessel market, will impact revenues and margins • Other segments stable or growing • Non-recurring restructuring costs in 2016 currently estimated to MNOK 120-150, further cost level adjustments considered on an ongoin
Slide 20: 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 21: World Class
WORLD CLASS THROUGH PEOPLE, TECHNOLOGY AND DEDICATION © KONGSBERG - All rights reserved