Kongsberg Gruppen ASA · OSL:KOG

Kongsberg Gruppen ASA — Q1 2006 Earnings Presentation

29 slides from Kongsberg Gruppen ASA's earnings presentation, May 9, 2006

  1. Slide 1: Q1 2006 – World Class through people, technology and dedication

    Q1 2006 WORLD CLASS – through people, technology and dedication KONGSBERG May 9, 2006 1

  2. Slide 2: Overall summary

    Overall summary ƒ MNOK 1 661 in operating revenues, up 16.3 % from Q1 2005 ƒ EBIT of MNOK 89 (MNOK 41) ƒ EBIT margin 5.4 % (2.9 %) ƒ Profit per share NOK 1.70 (NOK 0.54) Defence & Aerospace Offshore & Merchant Marine ƒ Growth in both operating revenues and ƒ Generally good Q1 operating profits compa

  3. Slide 3: Agenda

    Agenda ƒ Financial status at Q1 2006 ƒ The business areas – Status and prospects for the future ƒ Relevant factors ƒ Shares and shareholders ƒ Appendix KONGSBERG May26 © KONGSBERG, 9, August 2006 2003 3

  4. Slide 4: Operating revenues and EBIT

    Financial status at Q1 2006 Operating revenues and EBIT Operating revenues by quarter ƒ Both business areas demonstrated growth in 1800 1661 20 % 1600 18 % 1428 1428 1448 profits and volume 1401 16 % 1400 14 % compared with 2005 1200 12 % 1000 10,4 % 10 % ƒ Operating revenues up 800 8,4 % 8% 600 6%

  5. Slide 5: Cash flow and net interest-bearing debt

    Financial status at Q1 2006 Cash flow Net interest-bearing debt - Net interest-bearing debt increased by MNOK 124 in Q1 2006 - Primarily due to periodic fluctuations in the project portfolio 1 400 1 200 1164 1101 3,0 2,5 1 000 776 795 2,0 800 1,5 600 408 400 284 1,0 200 0,5 0 0,0 Net cash flow Q1 20

  6. Slide 6: New orders and backlog of orders

    Financial status at Q1 2006 New orders and backlog of orders Group 6000 5000 4000 3000 2000 1453 1644 1445 1281 1219 1000 0 5 5 5 5 6 -0 -0 -0 -0 -0 1 2 3 4 1 Q Q Q Q Q New orders Backlog of orders ƒNew orders for the Group – MNOK 1 445, down MNOK 8 from the same quarter last year - Strong influx of

  7. Slide 7: Key figures

    Financial status at Q1 2006 Key figures MNOK Q1-06 Q1-05 2005 EBIT margin: Group 5.4 % 2.9 % 6.3 % Offshore & Merchant Marine 7.7 % 6.0 % 8.6 % Defence & Aerospace 3.4 % -0.8 % 4.6 % Earnings per share, continuing 1.70 0.54 7.19 operations (NOK) Earnings per share 1.70 0.54 8.70 Net interest-bearing

  8. Slide 8: Agenda

    Agenda ƒ Financial status at Q1 2006 ƒ The business areas – Status and prospects for the future ƒ Relevant factors ƒ Shares and shareholders ƒ Appendix KONGSBERG May26 © KONGSBERG, 9, August 2006 2003 8

  9. Slide 9: Defence & Aerospace performance trends

    Defence & Aerospace Performance trends 900 Operating revenues by quarter EBIT by quarter 90 800 769 80 686 70 700 664 70 621 61 593 600 60 500 50 400 40 300 30 26 200 20 100 10 -5 -9 0 0 Q1 Q2 Q3 Q4 -10 Q1 Q2 Q3 Q4 2005 2006 -20 2005 2006 Operating revenues EBIT ƒ MNOK 769, up 23.8% from the ƒ MNOK

  10. Slide 10: Defence & Aerospace new orders and backlog

    Defence & Aerospace New orders and backlog of orders Defence & Aerospace 4000 3500 3000 2500 2000 1500 1000 699 424 396 375 500 237 0 5 5 5 5 6 -0 -0 -0 -0 -0 1 2 3 4 1 Q Q Q Q Q Ordreinngang Ordrereserve ƒ Modest influx of new orders, no large individual orders ƒ New orders expected to pick up as t

  11. Slide 11: The defence market Q1 2006

    Defence & Aerospace The defence market Q1 2006 Remote weapons systems (Protector) saw good results in Q1. There is a high level of activity and it is expected that more contracts will be signed during the year. The Group's largest development project ever, the new Naval Strike Missile (NSM), is on s

  12. Slide 12: Offshore & Merchant Marine performance trend

    Offshore & Merchant Marine Performance trend Operating revenues by quarter EBIT by quarter 900 865 90 82 781 790 800 741 80 722 72 70 67 700 61 600 60 50 47 500 400 40 300 30 200 20 100 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2005 2006 Operating revenues EBIT ƒ MNOK 865, up 10.8% from the ƒ MNOK 67

  13. Slide 13: Offshore & Merchant Marine new orders and backlog

    Offshore & Merchant Marine New orders and backlog of orders Offshore & Merchant Marine 2500 2000 1500 1173 994 1000 909 857 806 500 0 5 5 5 5 6 -0 -0 -0 -0 -0 1 2 3 4 1 Q Q Q Q Q New orders Backlog of orders ƒ Good influx of new orders Q1 ƒ New orders related to the rig market totalled approximately

  14. Slide 14: The market in Q1 2006 – 'rig boom' continues

    Offshore & Merchant Marine The market in Q1 2006 – 'rig boom' continues ƒ KONGSBERG is part of the 'rig boom' – KONGSBERG landed orders worth about MNOK 400 in Q1 2006 – KONGSBERG has won total contracts in this market valued at MNOK 500 in the past six months ƒ Strategically important contracts – T

  15. Slide 15: Agenda

    Agenda ƒ Financial status at Q1 2006 ƒ The business areas – Status and prospects for the future ƒ Relevant factors ƒ Shares and shareholders ƒ Appendix KONGSBERG May26 © KONGSBERG, 9, August 2006 2003 15

  16. Slide 16: Surveillance – a new target area

    Surveillance – a new target area ƒ Kongsberg Defence & Aerospace has established a Land Systems & Surveillance division – Based on the Group's expertise in command, control and information systems (CCI), communication, and harbour/coastal surveillance – Focus on civilian and military installations e

  17. Slide 17: Offset agreements

    Offset agreements What is an offset agreement? Prospects for the future ƒ When the Norwegian Armed Forces procure ƒ The Armed Forces' budgeted annual investments materiel from abroad, the foreign supplier must in materiel have increased from NOK 7.5 billion in return secure assignments for the Norwe

  18. Slide 18: Prospects for the future

    Prospects for the future ƒ KONGSBERG's maritime markets are still booming. Orders are on the increase in offshore markets, especially for rigs. In the commercial vessel market, there is high capacity utilisation among the shipyards, which means that delivery times are longer than usual. KONGSBERG ex

  19. Slide 19: Agenda

    Agenda ƒ Financial status at Q1 2006 ƒ The business areas – Status and prospects for the future ƒ Relevant factors ƒ Shares and shareholders ƒ Appendix KONGSBERG May26 © KONGSBERG, 9, August 2006 2003 19

  20. Slide 20: Ownership structure

    Ownership structure 20 largest shareholders (at 3 May 2006) Distribution of shareholders Shareholder # shares Stake ∆ 2006 The no rwegian state 1 Staten v/Nærings- og handelsdeparteme 15 000 400 50,00 % - 50 % 2 Folketrygdfondet 2 722 060 9,07 % 0,18 % 3 Arendals Fossekompani ASA 2 055 822 6,85 % -

  21. Slide 21: Share price and liquidity

    Share price and liquidity Share price performance from 1 January 2005 Liquidity trend from 1 January 2005 The GRI KOG against the index 1 Jan. 2005 KOG spread and trading from 1 Jan. 2005 index1) 160,0 150,0 8,00 % 700 140,0 7,00 % 600 130,0 6,00 % 500 120,0 5,00 % 400 110,0 4,00 % 3,00 % 300 100,0

  22. Slide 22: Agenda

    Agenda ƒ Financial status at Q1 2006 ƒ The business areas – Status and prospects for the future ƒ Relevant factors ƒ Shares and shareholders ƒ Appendix KONGSBERG May26 © KONGSBERG, 9, August 2006 2003 22

  23. Slide 23: Income statement

    Financial status at Q1 2006 Income statement MNOK Q1-06 Q1-05 2005 Operating revenues 1 661 1 428 5 705 Operating expenses (1 532) (1 344) (5 189) Operating profit (EBITDA) 129 84 516 Depreciation (40) (43) (156) Earnings before interest and tax (EBIT) 89 41 360 Net financial items (15) (16) (57) Sh

  24. Slide 24: Balance sheet

    Financial status at Q1 2006 Balance sheet 31 March 06 31 Dec 05 31 March 05 MNOK IFRS IFRS IFRS Property, plant and equipment 915 924 1 018 Intangible assets 1 123 1 127 1 252 Other long-term assets 344 325 197 Total long-term assets 2 382 2 376 2 467 Current assets 3 632 3 444 3 868 Cash and short-

  25. Slide 25: Historical development of operating revenues and EBIT

    Historical development of operating revenues and EBIT Operating revenues2) EBIT1)2) MNOK MNOK 8 000 600 6980 7 000 6651 485 6176 500 5814 5705 437 6 000 5296 400 383 360 5 000 4404 4412 278 287 4 000 3674 300 249 3023 221 3 000 192 200 173 2 000 100 1 000 0 0 96 97 98 99 00 01 02 03 04 05 96 97 98 9

  26. Slide 26: Currency hedges at March 2006

    Currency hedges at 31 March 2006 MNOK ƒ Substantial foreign currency exposure – 2 000 roughly 70% of sales outside Norway 1 600 ƒ Procurements from abroad and own 1 200 activities abroad mitigate net exposure 800 ƒ All contractual foreign currency flows are 400 fully hedged through forward contracts

  27. Slide 27: The Board of Directors of Kongsberg Gruppen ASA

    The Board of Directors of Kongsberg Gruppen ASA Finn Jebsen(56), Chair of the Board Siri Hatlen (48), Director ƒ Self-employed ƒ Self-employed ƒ CEO of Orkla from 2001 to 2005 ƒ A number of directorships: Chair of the Board of ƒ Member of Orkla's corporate management since 1984 Health East, SIFA SF,

  28. Slide 28: Financial calendar and investor relations contacts

    Financial calendar and investor relations contacts Financial calendar 2006 IR contacts Publication of the quarterly figures Arne Solberg, CFO ƒ Q2: 9 August Telephone: +47 32 28 95 75 ƒ Q3: 23 October E-mail: arne.solberg@kongsberg.com Presentations Jan Erik Hoff ƒ Q2: 10 August Investor Relations M

  29. Slide 29: World Class – through people, technology and dedication

    WORLD CLASS – through people, technology and dedication KONGSBERG May 9, 2006 29

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