Q Q Equity ratio increased to 30.6%

Transcription

1 Q1 21 WORLD CLASS through people, technology and dedication Q1 21 A good start to the year Operating income continues to rise: 12% before non-recurring items, up: 55% Good cash flow from operating activities: KONGSBERG posts MNOK 442 Net cash reserves of MNOK 949 Equity ratio increased to 3.6% Confirmation of market positions in a competitive market: The backlog of orders is strong, but down by 6% during the quarter Satisfactory new orders, given the market situation Further improvement in after-sales Development and delivery programs on schedule: Several major, long-term defence orders in the implementation i phase Large-scale deliveries to the CROWS programme New ventures in: Canada Brazil / 2 / WORLD CLASS through people, technology and dedication 1

2 AGENDA Financial i status t at Q1 21 Status - business areas Updates Appendix / 3 / WORLD CLASS through people, technology and dedication Status at Q1 21 * pr. Q New orders *Non-recurring item of MNOK 39 related to the settlement of the pension scheme as stated in note 7 in the quarterly report. is exclusive this non-recurring effect through-out the presentation. inclusive this non-recurring effect is shown in the quarterly report. / 4 / WORLD CLASS through people, technology and dedication 2

3 Financial Status at Q1 21 Quarterly trends in operating revenues and Q1 Q2 Q3 Q Endring i % Q % Q % margin Q1 7,8 % 1,8 % Q1 Q2 Q3 Q * Q1-21 exclusive non-recurring effect / 5 / WORLD CLASS through people, technology and dedication Financial Status at Q1 21 New orders and the backlog of orders Q1 21 Endring i % % New Orders Q ,6 % pr. Q1 1 New Orders / 6 / WORLD CLASS through people, technology and dedication 3

4 Financial status at Q1 21 Equity and liabilities KONGSBERG has net cash reserves of MNOK 949 Average term to maturity on drawn loans 3.25 years The Group also has an undrawn credit facility of MNOK 1. The Group's equity ratio is 3.6% 3.1% at year end The increase in equity during the quarter is primarily attributable to satisfactory earnings Maturity structure - loan agreements Amount Due MNOK MNOK 1 mill.* 213 MNOK * Credit facilities that are undrawn at 31 March 21 / 7 / WORLD CLASS through people, technology and dedication Financial status at Q1 21 Cash flow The cash flow from operating activities was MNOK 442 in Q1 At end quarter, KONGSBERG had positive net cash reserves of MNOK 949 Net cash flow Q1 (MNOK) EBITDA 52 Change in other items related to operations (6) Cash flow from operating activities 442 Acquisition of fixed assets (19) Acquisition of subsidiaries - Payments of loans and the acquisition/sale of shares - Other investing activities (18) Cash flow from invesment activities (127) Cash flow from financing activities (7) Effect of currency fluctuations on cash and short-term deposits 8 Net change, cash and short-term deposits 316 / 8 / WORLD CLASS through people, technology and dedication 4

5 Key figures Change, operating revenues Q1 21 Q % 42 % 25 % EBITDA EBITDA/employee ** (in NOK 1 ) margin 1,8 % 7,8 % 1, EBT Net Debt Gearing ratio n.a.,92 n.a. Equity % 3,6 % 21,1 % 3,1 % Book/bill,7 1,2 1,27 EPS 2,44 1,2 6,83 ** Average number of employees * EBITDA/ Q1-21 exclusive non-recurring effect / 9 / WORLD CLASS through people, technology and dedication Kongsberg Maritime Status / 1 / WORLD CLASS through people, technology and dedication 5

6 Kongsberg Maritime Status at Q New orders pr. Q * Q1-21 exclusive non-recurring effect WORLD CLASS through people, technology and dedication / 11 / Kongsberg Maritime Quarterly trends in operating revenues and Operating revenue Q1 Q2 Q3 Q Endring i % Q % Q % margin Q1 1,7 % 1,8 % 1 5 Q1 Q2 Q3 Q * Q1-21 exclusive non-recurring effect / 12 / WORLD CLASS through people, technology and dedication 6

7 Kongsberg Maritime New orders and the backlog of orders Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q1 21 Endring i % Akk % New orders Q % New orders Kongsberg Maritime has had cancellations totaling approx. MNOK 19 during the period Q1 29 Q1 21 / 13 / WORLD CLASS through people, technology and dedication Kongsberg Maritime in Q1 The business area had a high level of activity throughout the organisation Delivery projects Growing after-sales business The backlog of orders is still satisfactory The trend in new orders is as expected by the BA Improvement in new orders from Q4 29 Shipyards' orders for new vessels have picked up somewhat in recent months The level of cancellations is low, but any increase in postponements of projects at the shipyards and any further cancellations could affect the scope of deliveries in 21. / 14 / WORLD CLASS through people, technology and dedication 7

8 Kongsberg Defence Systems Status / 15 / WORLD CLASS through people, technology and dedication Kongsberg Defence Systems Status at Q New orders pr. Q * Q1-21 exclusive non-recurring effect / 16 / WORLD CLASS through people, technology and dedication 8

9 Kongsberg Defence Systems Quarterly trends in operating revenues and Q1 Q2 Q3 Q Endring i % Q % Q margin Q1 -,4 % 6,9 % 8 Efficiency i enhancement and improved operations Earnings are more even over the year since the business area is in the implementation phase of several major projects Q1 Q2 Q3 Q * Q1-21 exclusive non-recurring effect / 17 / WORLD CLASS through people, technology and dedication Kongsberg Defence Systems New orders and the backlog of orders Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Ordrereserve 29 Q1 21 Endring i % Akk % Ordreinngang Q % New orders New orders were lower during the quarter than in Q1 29, but this is within the range of ordinary variation between quarters Q1 29 Q1 21 / 18 / WORLD CLASS through people, technology and dedication 9

10 Kongsberg Defence Systems in Q1 Large-scale projects are on schedule, and have passed the first milestones: NASAMS *) air defence to Finland NSM **) to Norway NSM as coastal artillery for Poland The production of aircraft components is on schedule, but the volume is currently relatively low. The defence market is distinguished by few and largescale contracts Sales orders fluctuate through the year as a result of this *) NASAMS, Norwegian Advanced Surface to Air Missile System, is a ground-based air defence system developed by KONGSBERG in collaboration with Raytheon of the US **) NSM, Naval Strike Missile, is an autonomous missile developed by KONGSBERG in collaboration with Norwegian Defence Research Establishment and the Norwegian Navy / 19 / WORLD CLASS through people, technology and dedication Kongsberg Protech Systems Status / 2 / WORLD CLASS through people, technology and dedication 1

11 Kongsberg Protech Systems Status at Q New orders pr. Q * Q1-21 exclusive non-recurring effect WORLD CLASS through people, technology and dedication / 21 / Kongsberg Protech Systems Quarterly trends in operating revenues and Operating revenue Q1 Q2 Q3 Q Endring i % Q % Q % margin Q1 1, % 14,5% Higher margins are primarily due to operational and logistical improvements, as well as economies of scale Q1 Q2 Q3 Q * Q1-21 exclusive non-recurring effect / 22 / WORLD CLASS through people, technology and dedication 11

12 Kongsberg Protech Systems New orders and the backlog of orders Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q1 21 Endring i % Akk % New orders Q % New orders Q1 29 Q1 21 / 23 / WORLD CLASS through people, technology and dedication Kongsberg Protech Systems in Q1 Activity level on the rise throughout the organisation Deliveries being made on the extended CROWS framework agreement Growing after sales Strong influx of new orders early in the year. MNOK 814 in new orders booked in Q1, with part of the CROWS II Framework Agreement valued at MNOK 243 being the largest single contract. Contracts valued at about NOK 2.1 billion reported to the Oslo Stock Exchange on the CROWS framework agreement in April 21 Working actively with many new customers both in countries in which the business area already has contracts and in new countries. / 24 / WORLD CLASS through people, technology and dedication 12

13 Updates / 25 / WORLD CLASS through people, technology and dedication Value added KONGSBERG is a systems supplier A large percentage of the added value is done by subcontractors Thousands of subcontractors in Norway and abroad Flexible cost base A low degree of proprietary production entails relatively low investments Bring in outside expertise when needed to relieve peak workloads Innovation and development Over time, KONGSBERG spends about 1% of its operating revenues on development Employees and know how the most important source to innovation and value added / 26 / WORLD CLASS through people, technology and dedication 13

14 The defence market Established advanced and modern product range KONGSBERG has several products and systems that are well-established internationally Missiles Air defence Remote Weapon Stations RWS KONGSBERG has a modern, respected line of products Many relatively newly developed systems Reliable, important reference customers Deliveries to the Norwegian Armed Forces Air defence in Washington, D.C. RWS for the US Army Contractor to the JSF programme Cuts in international defence spending have had little impact on KONGSBERGs product range / 27 / WORLD CLASS through people, technology and dedication Prospects for the future Excerpts read the quarterly report for the full text Kongsberg Maritime's markets are strongly affected by trends in world trade and the demand for energy Kongsberg Maritime is expected to sustain its good market positions in the offshore industry and the maritime segment in 21 The pick-up in global after-sales and customer support will have positive results In the Board's opinion, the workload will be somewhat less heavy in 21 than in 29 Kongsberg Defence Systems expects continued good and growing activity levels Several major, long-term delivery programs are in the engineering and production phase, and this will even out earnings throughout 21 compared with previous years The focus on advanced composite components for the aviation industry continues, and significant marketing efforts are being made to prepare the ground for sales and the further development of missiles Kongsberg Protech Systems has had particularly good earnings in Q1 and the level of activity is expected to be high during the rest of the year and the margins is expected to be good, but probably somewhat lower than in Q1 There are significant new opportunities in the market for weapon control systems with a view to existing customers as well as new ones There are major vehicle programmes in the pipeline in the US as well as in Europe which could represent a significant potential for several of the BA s products. All in all, KONGSBERG enjoys good positions in the shipping, offshore and defence markets and has a high order backlog, providing a strong platform for operations and profitability in 21 However, the general economic situation remains uncertain and a setback could, over time, have an adverse effect on the Group's level of activity / 28 / WORLD CLASS through people, technology and dedication 14

15 Appendix / 29 / WORLD CLASS through people, technology and dedication Financial status at 31 March 21 Income statement MNOK Q1-1 Q Operating expenses (3 276) (3 18) (12 197) (9 737) Non-recurring effect related to the settlement of the 39 pension scheme a Earnings before interest, depreciation and the amortisation of goodwill (EBITDA) Depreciation (59) (52) (243) (197) Amortisation (23) (22) (113) (84) Earnings before interest and tax (EBIT) Write-downs on financial assets 5 (138) Net other financial items () (29) (99) (39) Profit before tax Taxes (126) (63) (341) (274) Result during the period Minority interests 1 2 (8) (4) Equity holders of the parent Earnings per share (NOK) 2,44 1,2 6,83 4,86 Earnings per share, diluted (NOK) 2,44 1,2 6,83 4,86 Earnings per share, excl. non-recurring items 2,22 1,2 6,83 14,86 New orders (MNOK) a Constitute non-recurring items a Non-recurring items related to the settlement of the pension scheme as stated in note 7 in the quarterly report. / 3 / WORLD CLASS through people, technology and dedication 15

16 Financial status at 31 March 21 Balance sheet MNOK Tangible fixed assets Intangible assets Other non-current assets Total non-current assets Short-term assets Cash and short-term deposits Total current assets Total assets Paid-in capital Retained earnings Excess/negative value, financial instruments (246) Minority interests Total equity Long-term interest-bearing debt Other non-current liabilities Total non-current liabilities Prepayments from customers Other current liabilities Total current liabilities Total equity and liabilities / 31 / WORLD CLASS through people, technology and dedication Shares and shareholders 2 largest shareholders (at 27. april 21) Share price performance Shareholders # shares Stake 21 1 Staten v/nærings- og handelsdepartementet , % - 2 Folketrygdfondet ,4 % -,98 % 3 Arendals Fossekompani ,96 % - 4 MP Pensjon ,1 % - 5 Skagen Vekst ,71 %,11 % Total for the 5 largest shareholders ,73 % 6 Orkla ASA ,5 % - 7 Odin Norge ,3 % -,3 % 8 Odin Norden ,14 % -,27 % 9 JP Morgan Chase bank - nominee ,1 %,38 % 1 Odin Offshore 95,79 % -,4 % 11 State Street Bank & Trust Co - nominee ,52 %,5 % 12 Goldman Sachs Int. - nominee ,51 %,11 % 13 VP Danske Invest Norske ,45 % -,11 % 14 JP Morgan Chase bank - nominee ,4 % - 15 Must Invest AS 4,33 % - 16 VP Danske Invest Norge ,3 % Ny 17 BNP Paribas - nominee 356,3 % -,8 % 18 Pactum AS 35,29 % - 19 JP Morgan Chase bank - nominee ,28 %,3 % 2 The Northern Trust - nominee ,27 % - Total for the 2 largest shareholders ,1 % Total number of shares 12 1, % Indeks 1) 18, 16, 14, 12, 1, 8, 6, 4, 2,, jan. 9 feb. 9 mar. 9 apr. 9 KOG compared with indices from 1 January 29 mai. 9 jun. 9 jul. 9 aug. 9 sep. 9 okt. 9 nov. 9 des. jan. 1 feb. 1 mar. 9 1 KOG Index OSEBX OSE Ind. 1) KOG's share price relative to the Oslo Stock Exchange Benchmark Index and the Industrials Index. Closing share price on 1 January 29 = 1 The share was split 1:4 with effect as from 8 May 29 apr. 1 / 32 / WORLD CLASS through people, technology and dedication 16

17 Currency Hedging portfolio at 31 March 21 (values in NOK) ==> Hedging portfolio Orders: All orders signed in foreign currencies are hedged, eliminating currency risk Prognosis: Prior to signature, probable contracts are also hedged pursuant to the guidelines stipulated in the Group's Foreign Exchange Policy USD Prognose USD Ordre EUR Prognose EUR Ordre Foreign exchange policy Hedging of all signed contracts Partial ata hedging gof anticipated tcpatedrevenues e in foreign currencies two years ahead Goals: Create predictability and ensure profitability for the existing product portfolio Allow time for operational and strategic initiatives in the event of lasting changes in exchange rates Foreign currency position 7-75 per cent of sales influenced by exchange rates per cent of costs in foreign currencies About 35 per cent net exposure, primarily in USD and EUR Our competitiveness is influenced by: Changes in NOK exchange rates, NOK/EUR, 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 the USD / 33 / WORLD CLASS through people, technology and dedication The Board of Directors of Kongsberg Gruppen ASA Finn Jebsen (59) - Chair of the Board Self-employed CEO of Orkla from 21 to 25 Other directorships: Chair of the Board of Kavli Holding AS, deputy chair of KLP forsikring, director of Berner Gruppen AS, Anders Wilhelmsen & Co AS and Norsk Hydro ASA Benedicte Berg Schilbred (63) deputy chair Executive Chair of the Board of the Odd Berg Group Other directorships: Chair of the Board Tos Lab AS, director in Norway Pelagic Group AS, Fiskeriforskning AS, Norsildmel AS and Nordsildmel Innovation AS Erik Must (67), Director Other directorships: Chair of the Board of Directors for Fondsfinans ASA, Fondsfinans Kapitalforvaltning Holding AS, Arendals Fossekompani ASA, Gyldendal ASA and Erik Must AS. Director of the NSTC Media Group AS, Norwegian Museum of Cultural History, the Arenzt Legacy and the Biotechnology Centre, University of Oslo, among others John Giverholt (57), Director CFO, Ferd AS Experience from Orkla ASA, DnB ASA and Norsk Hydro ASA Other directorships: Director of Telenor ASA Anne-Lise Aukner (53), Director Chief Executive Officer and Country Manager Nexans Norway AS Other directorships: EDB Business Partner ASA, Federation of Norwegian Industries, Europacable Norge AS, INTPOW, Nexans Norway AS, Aukner Holding AS and the Confederation of Norwegian Enterprise (NHO. Member of NHO's Ethics Committee and the Executive Management Forum at the Ministry of Petroleum and Energy Roar Marthiniussen (52) Director (employee representative) Sales and Marketing Manager, Kongsberg Maritime AS Engineer from the Horten College of Engineering Employee representative since 1999 Helge Lintvedt (52), employee representative Senior Project Engineer at Kongsberg Defence Systems Graduate of the Kongsberg College of Engineering Employee representative since 29 Head of the Norwegian Society of Engineers and Technologists' corporate chapter at KDA, Director, KDA Kai Johansen (42), Director (employee representative) Shop Steward in the Norwegian United Federation of Trade Unions, Kongsberg Protech Systems Training from Kongsberg Vocational School Guild certificate as a CNC operator Employee representative since 27 / 34 / WORLD CLASS through people, technology and dedication 17

18 Financial Calendar and Investor Relations contacts Financial calendar 21 Publication of quarterly figures Q2-19 August Q3-4 November Annual General Meeting 11 May Capital Markets Day 7 September IR contacts Arne Solberg, CFO Telephone: arne.solberg@kongsberg.com Jan Erik Hoff VP Investor Relations Telephone: / jan.erik.hoff@kongsberg.com Kongsberg Gruppen ASA Telephone: office@kongsberg.com For more information, see: / 35 / WORLD CLASS through people, technology and dedication / 36 / WORLD CLASS through people, technology and dedication 18