Increase in operating revenues, EBITA and operating margin Strong influx of new orders Several major contracts

Transcription

1 General summary Q1 Operating revenues up 1.1 per cent Operating profit (EBITA) up 66.7 per cent Operating margin up from 5.5 per cent to 8.4 per cent New orders climbed by 87.7 per cent Foundation laid for a high influx of new orders in Q2 Defence & Aerospace Increase in operating revenues, EBITA and operating margin Strong influx of new orders Several major contracts Contract with the Finnish Armed Forces worth MNOK 18 Continued strong influx of new orders for Remote Weapons Systems (RWS) Offshore & Merchant Marine Increase in operating revenues, EBITA and operating margin Record influx of new orders Growing backlog of orders for the 9th consecutive quarter High pace of delivery in all areas 2 Agenda Financial status at Q1 27 The business areas status and prospects for the future Updates Shares and shareholders Appendix 3 1

2 Financial status at Q1 27 Operating revenues and EBITA by quarter Operating revenues by quarter Q1 operating revenues in 27 were 1.1% higher than in Q Q1 Q2 Q3 Q4 The operating profit (EBITA) climbed by MNOK 62 (66.7%) % % EBITA by quarterl % 6.5 % % 2% 18% 16% 14% 12% 1% 8% 6% 4% The EBITA margin was 8.4 % (5.5%) 2 2% % Q1 Q2 Q3 Q EBITA-margin 6 EBITA-margin 7 4 Historical development of operating revenues and EBITA MNOK Operating revenues MNOK EBITA Per Q16 Per Q Per Q16 Per Q17 5 2

3 Financial status at Q1 27 New orders and backlog of orders New orders New orders for the Group in Q1 added up to MNOK (up 87.7%) 1 5 Q1 Q Q3 Q4 The backlog of orders is continuing to rise Up MNOK 1 49 (16.2%) since New Year's Backlog Foundation laid for a high influx of new orders in Q2 as well 1 Q1-6 Q2-6 Q3-6 Q4-6 Q1-7 6 Financial status at Q1 27 Cash flow Net interest-bearing debt totalled MNOK 734 at the end of Q1. MNOK 266 was related to payments for the acquisition of the shares in Sense Intellifield More tied-up capital as a result of more projects in progress than before Net interest-bearing debt 1 4 3, , , ,5 6 1, ,5, Pr. Q1 27 Net interest-bearing debt Debt / EBITDA Net cash flow at Q1 7 (MNOK) EBITDA Changes in prepayments from customers Change in working capital and other operational items Cash flow from operating activities (38) (87) Acquisition of fixed assets Net payment for acquisition of shares Cash flow from investing activities (49) (276) (325) Cash flow from financing activities 36 Net change in liquid assets (376)

4 Financial status at Q1 27 Key figures MNOK Q1 7 Q EBITA margin: Group 8.4 % 5.5 % 6.9 % Offshore & Merchant Marine 1.8 % 7.7 % 9.3 % Defence & Aerospace 5.4 % 3.8 % 6.1 % Earnings per share ,7 8.3 Net interest-bearing debt/ EBITDA Equity ratio Net interest-bearing debt (MNOK) 23.6 % % % 294 Number of employees Agenda Financial status at Q1 27 The business areas status and prospects for the future Updates Shares and shareholders Appendix 9 4

5 Defence & Aerospace Performance trends Operating revenues by quarter Remote weapons systems continue to contribute strongly to revenues and profits 4 2 Q1 Q2 Q3 Q Operating revenues At the same level as in Q EBITA by quarter Q1 Q2 Q3 Q Operating profit (EBITA) The operating profit (EBITA) increased by MNOK 13 (43.3%) The EBITA margin was 5.4% (3.8%) 1 Defence & Aerospace New orders and backlog of orders New orders 1325 Good influx of new orders during the period Continuing to build order backlog Q1 Q Backlog Q3 Q4 3,733 The defence market is distinguished by few clients and large-scale contracts. New orders fluctuate as a result of this ,593 2,747 2,98 3,253 A strong influx of new orders is also expected in Q Q1-6 Q2-6 Q3-6 Q4-6 Q

6 Defence & Aerospace The market in Q1 27 a strong influx of new orders and exciting opportunities Several important contracts signed in Q1 A contract with the Finnish Armed Forces for the delivery of hydrographic equipment and systems integration A framework agreement with Northrop Grumman and Lockheed Martin for the production of aircraft components in composite and titanium for the Joint Strike Fighter A joint marketing agreement with Lockheed Martin for a new version of the NSM, called the JSM, adapted to the Joint Strike Fighter Naval Strike Missile (NSM) approaching production start It is expected that a production contract will be signed in Q2 Contingent on the approval of the parliament and government 12 Offshore & Merchant Marine Performance trend Operating revenues by quarter Higher operating income and operating profit (EBITA) than in Q Q1 Q2 Q3 Q Operating revenues Increase by 18.7% relative to Q EBITA by quarter Operating profit (EBITA) MNOK 44 higher EBITA (65.7%) The BA has never before posted such a good result as in this year's Q1 Operating margin 1.8% 4 2 Q1 Q2 Q3 Q

7 Offshore & Merchant Marine New orders and backlog of orders New orders Continued strong influx of new orders for the business area th consecutive quarter of backlog growth Q1 Q Backlog Q3 Q4 Relatively long-term backlog of orders Q1-6 Q2-6 Q3-6 Q4-6 Q Offshore & Merchant Marine The market in Q1 27 burgeoning activity in all areas The level of activity is high Good influx of new orders in several segments Dynamic positioning more than MNOK 5 Subsea more than MNOK 35 Process automation more than MNOK 35 Orders for rigs are expected to stabilise at a more normal level Orders are expected to pick up for floating production units The Merchant Marine market, including LNG, remained at a stable high level 15 7

8 Agenda Financial status at Q1 27 The business areas status and prospects for the future Updates Shares and shareholders Appendix 16 Further opportunities for Protector RWS Protector goes to sea Protector KONGSBERG currently has two versions of the Protector weapons control system on the market Light version Medium version Total new orders since Protector was introduced are now in excess of NOK 3 billion Great opportunities with new and existing customers Sea-protector New version of the Protector developed for deployment on vessels Tested during NATO's winter exercise, Cold Response 17 8

9 HUGIN Many possible applications civilian and military alike Autonomous Underwater Vehicle Guided inter alia by sound waves (hydroacoustics) HUGIN has both civilian and military applications Seabed surveying Mine-hunting What is HUGIN? Major contracts KONGSBERG concluded a contract with India in April worth approx. MNOK 35 for the HUGIN, among other products The HUGIN will be used for seabed surveying This is the largest contract ever landed by KONGSBERG's subsea community 18 Fighter aircraft KONGSBERG is impartial when it comes to Norway's choice of fighter aircraft and is pursuing all three shortlisted options KONGSBERG has negotiated possible production of components in titanium and composite. This calls for the construction of a new factory The authorities require that all contractors must be able to provide work for such a factory Understanding on the part of the Norwegian authorities regarding the need for guarantees relative to future political decisions 19 9

10 Prospects for the future Continued boom in KONGSBERG's maritime markets The attention devoted to the offshore market will continue in 27 and KONGSBERG's share of earnings from this market is expected to increase In the market for merchant vessels, shipyards are experiencing high capacity utilisation and, as a result, delivery times for new vessels are longer than usual KONGSBERG expects a continued strong influx of new orders in these markets A possible strengthening of NOK and a continuing decline of USD, might threaten the competitiveness in a longer perspective More new orders are expected in Defence & Aerospace in 27 The strong influx of new orders in the market for remote weapons systems is expected to continue and several new countries are expected to sign contracts Many opportunities in countries that have already signed contracts for the system The development of the Naval Strike Missile (NSM) is nearing completion and it is assumed that a production contract will be signed with the Norwegian Armed Forces in Q2 27 All in all, operating revenues and the operating margin are expected to be better in 27 than in 26 2 Agenda Financial status at Q1 27 The business areas status and prospects for the future Updates Shares and shareholders Appendix 21 1

11 Ownership structure 2 largest shareholders (at 3 May 27) Shareholders # shares Stake 27 1 Norwegian State repr. by Ministry of Trade and Ind , % - 2 Folketrygdfondet ,7 % - 3 Arendals Fossekompani ASA ,21 %,36 % 4 MP Pensjon ,1 % - 5 Skagen Vekst 9 3, % -,14 % Total for the 5 largest shareholders ,29 % 6 Odin Norge ,92 % -,13 % 7 Odin Norden ,71 %,5 % 8 Orkla ASA ,15 % - 9 Ferd AS 6 2, % -,17 % 1 Odin Offshore 25,83 % -,11 % 11 Morgan Stanley 14 15,47 % New 12 Stichting Pensioenfond ,42 % New 13 Vital Forsikring ,39 % - 14 Danske Fund Norge ,38 % -,9 % 15 Danske Fund Norge Vekst 113 8,38 % - 16 Gjensidige Forsikring 18 42,36 % New 17 Pactum 1,33 % - 18 Fondsavanse AS 1,33 % - 19 Fidelity Funds - Eur Companies Two 97 35,32 % New 2 State Street Bank as agent ,31 % -,5 % Total for the 2 largest shareholders ,6 % Total number of shares 3 1, % Foreigners 4 % Stake < Distribution of shareholders 1 1 No. of shareholders Norwegian state 5 % Private investors 5 % Insurance/ Org./ pension funds businesses 6 % 23 % % of shareholders 89.4% 8.91% 1.32%.28%.9% Securities funds 12 % % of total no. of shares 2.61% 3.24% 7.54% 16.32% 7.29% 22 Share price and liquidity Share price performance from 1 January 27 Index 1) KOG compared with indexes from 1 Jan. 27 Liquidity trend from 1 January 27 Spread KOG spread and trading from 1 Jan % Shares jan. 7 feb. 7 mar. 7 apr. 7 mai % 1.% 8.% 6.% 4.% 2.% KOG Index OSEBX OSE Ind. Price trend The price of KONGSBERG shares has climbed by approx. 15 % since the closing rate at year-end 26. KOG reached an all time high of NOK 27 per share in May.% Jan-7 Feb-7 Mar-7 Apr-7 May-7 Shares (1) KOG Spread Liquidity trend 3 per. Mov. Avg. (KOG Spread) The trading volume and the liquidity of the share remain low There are now approx. 4 7 shareholders in KONGSBERG 1) Comparison of KOG share price to OSEBX and the OSE industrial index. Price set at 1 at the closing rate at year-end

12 Agenda Financial status at Q1 27 The business areas status and prospects for the future Updates Shares and shareholders Appendix 24 Financial status at 31 March 27 Income statement MNOK Operating revenues Operating expenses EBITDA Depreciation EBITA Amortisation EBIT Net financial items Profit before taxes Taxes Net profit after tax Minority interests Equity holders of the parent Q (1 654) 199 (44) 155 (9) 146 (18) 128 (39) Q (1 548) 135 (42) 93 (1) 92 (15) 77 (25) (6 93) 627 (163) 464 (16) 448 (58) 39 (138) Earnings per share (NOK) Earnings per share, diluted (NOK New orders (MNOK)

13 Financial status at 31 March 27 Balance sheet MNOK Tangible fixed asset Intangible assets Other non-current assets Total non-current assets Current assets Bank deposits and cash equivalents Total current assets Total assists 31 March Dec March Paid-in capital Retained earnings Minority interests Total equity Long-term interest-bearing debt Other non-current liabilities Total non-current liabilities Prepayment from customers Other current liabilitites Total current debt Total equity and liability Foreign exchange Hedging portfolio at 31 March 27 (value in NOK) => USD prognosis EUR prognosis USD orders EUR orders Foreign exchange policy 1% hedging of signed contracts Partial hedging of forecast foreign exchange revenues for the next 3 years. Objectives: Create predictability and ensure profitability for the current product portfolio Allow time for operational and strategic initiatives in connection with lasting changes of course Hedging portfolio Orders: All signed orders in foreign currencies are hedged to eliminate currency risk Forecast: Contracts likely to be signed, but not yet signed, are also hedged pursuant to the guidelines in our Foreign Exchange Policy Foreign currency position 7-75% of sales influenced by exchange rates 3-35% of costs in foreign currencies About 4% net currency exposure, primarily in USD Our competitiveness is influenced by: Changes in the NOK/EUR exchange rate against all foreign competitors Changes in the USD exchange rate, USD/EUR, against all competitors with their cost base in USD or currencies linked to USD 27 13

14 The Board of Directors of Kongsberg Gruppen ASA Finn Jebsen(57), Chair of the Board Self-employed CEO of Orkla from 21 to 25 Member of Orkla's corporate management since 1984 Others directorships: Kavli Holding AS (Chair), Cermaq ASA (Deputy Chair) and KLP forsikring (insurance) (Deputy Chair) Benedicte Berg Schilbred(6), Deputy Chair Executive Chair of the Board of the Odd Berg Group Others directorships: Chairman of the Board Tos Lab AS. Member of the Boards of Norway Pelagic Group AS, Fiskeriforskning AS, Norsildmel AS and Norsildmel Innovation AS Erik Must (64), Director Others directorships: Chair of the Board of Fondsfinans ASA, Fondsfinans Kapitalforvaltning Holding AS, Arendals Fossekompani and Erik Must AS. Director of Gyldendal and Norges Handels- og Sjøfartstidende, among others John Giverholt (54), Director CFO, Ferd AS Experience from Orkla ASA, DNB ASA and Norsk Hydro ASA Others directorships: Director of Telenor ASA Siri Hatlen (49), Director Self-employed Others directorships: Chair of the Board of Health East, SIFA SF, the State Education Loan Fund, Det Norske Samlaget Publishing House and AS Vinmonopolet. Director of PGS ASA, NTNU and Det Norske Teateret, among others Roar Marthiniussen (5) Director (employee representative) Sales and Marketing Manager at Kongsberg Maritime AS Engineer from the Horten College of Engineering Employee representative on KONGSBERG's Board of Directors since 1999 Jan Erik Hagen (48), Director (employee representative) Shop Steward at Kongsberg Protech AS Educated at the Kongsberg College of Engineering Guild certificate as a mechanical engineering supervisor Employee representative since 23 Audun Solås (48), Director (employee representative) Chief engineer at Kongsberg Defence & Aerospace Graduate engineer, Royal College of Technology, Stockholm Employee representative since Financial Calendar and Investor Relations contacts Financial calendar 27 Publication of quarterly report Q2: 14 August Q3: 22 October Presentations Q2: 15 August Q3: 23 October Investor Relations contacts Arne Solberg, CFO Telephone: arne.solberg@kongsberg.com Jan Erik Hoff Manager, Investor Relations Telephone: / jan.erik.hoff@kongsberg.com Kongsberg Gruppen ASA Telephone: office@kongsberg.com For more information, please see: