Kongsberg Gruppen Asa · OSL:KOG

Kongsberg Gruppen Asa — Investor Day (June 2022)

21 slides from Kongsberg Gruppen Asa's investor day presentation, Jun 2, 2022

  1. Slide 1: Capital markets day

    Capital markets day 02/06/2022 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 with KONGSBERG in writing.

  2. 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

  3. Slide 3: Solid revenue growth

    Solid revenue growth Revenue 2017 – LTM Q1 2022 (NOKbn) NOKbn 30 28.1 CAGR 18% 27.4 25.6 25 23.2 20 15 14.0 13.8 10 5 0 2017 2018 20191 2020 2021 LTM Q1 2022 Kongsberg Defence & Aerospace Kongsberg Maritime Kongsberg Digital WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETA

  4. Slide 4: Revenue development in KM & KDA

    Revenue development in KM & KDA KM NOKbn 6 NOKbn 20 5 15 4 3 10 2 5 1 0 0 Q1 ’17 Q2 ’17 Q3 ’17 Q4 ’17 Q1 ’18 Q2 ’18 Q3 ’18 Q4 ’18 Q1 ’19 Q2 ’19 Q3 ’19 Q4 ’19 Q1 ’20 Q2 ’20 Q3 ’20 Q4 ’20 Q1 ’21 Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Rolling 12m revenue Deck Machinery & Motion Control Propulsion & Engines Sensor

  5. Slide 5: Kongsberg Digital

    Kongsberg Digital Rolling 12m Operational recurring KPIs revenue 1,700 NOKm +51% # sold 723 400 Vessel 372 347 2020 May 2022 350 326 309 293 300 272 278 14 246 253 257 250 # Digital Twins contracted 2 200 150 2020 May 2022 100 ⁓350-500 50 # active rigs ⁓250-350 with SiteCom 0 Q4’19 Q1’20 Q2’20 Q3’20

  6. Slide 6: Associated companies

    Associated companies Dividend and income from associates Earnings per share Patria Income from associate (NOKm) Received dividend (NOKm) KSAT & Patria (49.9%)1 150 16.1 0.6 101 104 108 0.7 75 75 84 60 68 45 55 12.1 0.8 -35 0.7 2016 2017 2018 2019 2020 2021 5.4 5.6 0.6 4.6 0.6 14.8 0.4 4.0 KSAT 1.2 0

  7. Slide 7: Committed to deliver on 2022 targets

    Committed to deliver on 2022 targets Capital Markets Status first Day 2019 quarter 2022 > 30.0 27.4 28.1 25.6 Revenue 23.2 (NOKbn) 2019 2020 2021 LTM Q1 2022 2022 14.9% 14.3% > 14.0% 12.7% 9.1% EBITDA % 2019 2020 2021 LTM Q1 2022 2022 32.7% 32.6% 20.8% 10.0% ROACE % 2019 2020 2021 LTM Q1 2022 2022 A

  8. Slide 8: Trending towards > NOK30bn revenues

    Trending towards > NOK30bn revenues Revenue 2019 – NOKbn LTM Q1 2022 (NOKbn) > 30 ▪ Hydroid divested in February 2020 ▪ Full year effects from Rolls-Royce 2.8 28.1 commercial marine and KAMS from 2020 ▪ Organic growth mainly from defence 2.1 business 24.1 ▪ Target >NOK30bn despite impact from; (0.8)

  9. Slide 9: On track to deliver on EBITDA target

    On track to deliver on EBITDA target NOKbn EBITDA development 2019 – LTM Q1 2022 (NOKbn) 0.4 0.5 1.6 4.0 NOKbn (0.7) 2.3 9.5% 14.3% Product Value SG&A and LTM Q1 22 2019 EBITDA Growth mix capture R&D2 EBITDA NOKm NOKm High share of foreign sales 380 640 330 700 in defence ~40% Maritime 260 370 ~60%

  10. Slide 10: Financial targets for 2025

    Financial targets for 2025 Excluding Kongsberg Digital 2025 Revenue EBITDA EBIT > 40 KM Growth 14% > 23 KOG KOG > 17 15% 12% KDA 17% KDA KM KOG1 Backlog NOKbn 1) Excluding Kongsberg Digital WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary i

  11. Slide 11: Maintaining capital allocation priorities

    Maintaining capital allocation priorities Capital allocation priorities 1. Solid balance sheet 2. Invest for organic growth 3. Shareholder remuneration 4. Portfolio management WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 11

  12. Slide 12: Solid balance sheet & debt capacity

    Solid balance sheet & debt capacity Net debt/EBITDA 2018-LTM Q1 2022 ▪ Long-term target of Net debt / EBITDA of 1.5x +/-1.0x ▪ Net debt/EBITDA of below 2.5x securing 2.5 2.5x (cap) 2.0 - Access to funding 1.5x (range - Customer confidence 1.5 mid point) 1.0 - Financial flexibility 0.5 ▪ Credit ratin

  13. Slide 13: Net working capital development

    Net working capital development KM NOKbn ▪ Net working capital largely driven by project 4.0 mix 3.0 9% 9% 8% 9% 9% 6% 7% 8% ▪ Aiming for net working capital at or around 2.0 5% 5% Q1 2022 level 1.0 1.6 1.5 1.6 0.9 1.1 1.2 1.2 1.4 1.3 0.9 0.0 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1

  14. Slide 14: Technology development securing our positions

    Technology development securing our positions NOKbn Self-funded R&D R&D process 2015 – LTM Q1 2022 (NOKbn) 6.7% 5.9% 5.5% Develop 5.0% R&D funding world class 4.6% 4.6% (self- and 4.5% customer products 4.2% funded) and 1.3 1.3 solutions 1.2 1.1 0.3 0.3 1.0 0.2 0.8 0.2 0.8 0.1 0.1 0.1 0.2 0.8 0.1 0.

  15. Slide 15: Ramping up production capacity to meet demand

    Ramping up production capacity to meet demand Capital expenditures NOKbn 2015-LTM 4.0% 1.5 2.4% ▪ Investments in property, plant and equipment averaging 2.2% Q1 2022 2.4% 2.1% 2.1% 2.2% 2.4% of revenues last 7 years 1.0 1.7% 0.64 0.58 0.62 ▪ Will invest ~NOK 1.5bn in new production facilities and 0.

  16. Slide 16: NOK7.5bn in shareholder remuneration

    NOK7.5bn in shareholder remuneration NOKbn Total Shareholder Total shareholder Remuneration return 2019 – 2019 – 2022 May 2022 (NOKbn) 1.1 1.6 450 400 350 NOK7.5bn 300 +226% 250 200 150 +61% 100 4.8 50 0 Jan19 May19 Sep19 Jan20 May20 Sep20 Jan21 May21 Sep21 Jan22 May22 Ordinary Dividends Extraordina

  17. Slide 17: Cost base development

    Cost base development Cost development NOKbn 2019 – LTM Q1 2022 ▪ Approximately 75% of cost base is COGS (NOKbn) ▪ About 85% of cost base is related to raw materials and personnel cost 24.1 24.1 23.0 22.4 23.4 ▪ About 50% of KM revenues are from 1.9 4.0 Other aftermarket sales 6.0 6.3 6.1 6.3 10.3 P

  18. Slide 18: EU Taxonomy

    EU Taxonomy MAINTENANCE MEASURED FUEL OTHER OPPORTUNTIES FUEL SAVINGS IDENTIFIED TO REDUCTION MAINTENANCE SAVINGS & FURTHER IMPROVE All KONGSERG 43% 20% REDUCTION EMISSION REDUCTION SUSTAINABILITY ONBOARD THE RIGS reduction of engine reduction in fuel up to 50% e.g., crew revenues running hours cons

  19. Slide 19: Active management of business portfolio

    Active management of business portfolio Portfolio management ACQUISITIONS DIVESTMENTS INVESTMENTS JOINT VENTURES Renewables WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 19

  20. Slide 20: Financial priorities towards 2025

    Financial priorities towards 2025 Secure Secure Prioritize and growth competitiveness allocate capital WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 20

  21. Slide 21: KONGSBERG PROPRIETARY - See Statement of Proprietary information

    KONGSBERG PROPRIETARY - See Statement of Proprietary information

Kongsberg Gruppen — Investor Day (June 2022) on 6ix