Q WORLD CLASS through people, technology and dedication. KONGSBERG August 20,

Transcription

1 Q WORLD CLASS through people, technology and dedication KONGSBERG August 20,

2 Agenda Key figures and highlights Kongsberg Maritime - Offshore & Merchant Marine - Yachting & Fishery Kongsberg Defence & Aerospace Prospects NSM KONGSBERG August 20,

3 Agenda Key figures and highlights Kongsberg Maritime - Offshore & Merchant Marine - Yachting & Fishery Kongsberg Defence & Aerospace Prospects NSM KONGSBERG August 20,

4 Summary Challenging first half measures implemented good order situation 4

5 Q2 highlights EBITA MNOK -25 (MNOK 139) MNOK 150 charged against income to complete the remaining parts of the NSM programme Slower activity in hydroacoustics. EBITA MNOK 22 less than in Q EBT MNOK -91 (MNOK 56) Cost-cutting measures implemented in defence activities Good influx of new orders in the maritime segment; NOK 2.1 billion SIMRAD sued by competitor in Acquitted by the District Court on all counts in August Successful NSM development firing! 5

6 Key figures (MNOK) Q Q Q Q Operating revenues EBITA (76) 105 (25) 139 EBITA % EBIT (99) 83 (71) 94 EBT (125) 64 (91) 56 Result after tax (93) 44 (69) 38 Profit per share (3.13) 1.48 (2.32)

7 Operating revenues (accumulated) Reduced volume in defence segment. Missiles down MNOK Q1 Q2 Q3 Q

8 EBITA (accumulated) Negative EBITA margin (4.2%) The result was influenced by a slowdown in new orders for hydroacoustics and Penguin missiles, and costs of MNOK 150 in connection with the development of the NSM Q1 Q2-25 Q3 Q

9 EBITA (accumulated), excluding one-off effects EBITA margin, excluding one-off effects 4.1% (5.7%) Q1 Q2 Q3 Q

10 New orders Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 Offshore & Merchant Marine Yachting & Fishery KDA Continued strong influx of new orders in the maritime segments. 10

11 Balance sheet (MNOK) 30 June March Dec. 03 Assets Net interest-bearing debt Equity Equity % Liabilities/EBITDA* *Net debt gearing ratio 11

12 Agenda Key figures and highlights Kongsberg Maritime - Offshore & Merchant Marine - Yachting & Fishery Kongsberg Defence & Aerospace Prospects NSM KONGSBERG August 20,

13 Kongsberg Maritime: Highlights Operating revenues up MNOK 120 from Q Profits affected by less spending in the market for hydroacoustics products Good influx of new orders: approx. MNOK 300, up 17 per cent from Q High level of activity at Marine Automation Yachting & Fishery volume up 11 per cent from Q2 2003, but market price pressure is threatening margins Slow investment in the fisheries segment Sustained high level of activity on the LNG market 13

14 Offshore & Merchant Marine: EBITA (accumulated) Operating revenues: MNOK (MNOK 1 299) EBITA margin: 7.3% (8.9%) New orders: MNOK (MNOK 1 400) Hydroacoustics profitability down from last year Q1 Q2 Q3 Q

15 Offshore & Merchant Marine Market The market for ships remains buoyant SHIPYARDS' ORDER BOOKS Number of ships Europa Japan Kina, Sør-Korea Andre Aug. 04 Rest Kina Sør-Korea Japan Asia totalt Europa Øvr. Verden SUM Source: Clarkson Research Studies; World Shipyard Monitor ORDERS FOR 2004 Q Trend Kina ,7 % Sør-Korea 325 4,5 % Japan ,4 % Asia totalt ,0 % Europa ,5 % Øvr. Verden 17 0,5 % SUM ,3 % KONGSBERG is wellpositioned in both Asia and Europe As a result of shipyards' limited capacity, delivery times have increased for backlog orders 15

16 Offshore & Merchant Marine: Volume trend Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 Ordreinngang Driftsinntekter 16

17 Yachting & Fishery: EBITA (accumulated) Operating revenues: MNOK 508 (MNOK 458) EBITA margin: 6.5% (7.4%) Higher volume in the yacht market (boat builders), but price pressures threaten margins. Investment slow in the fisheries market Q1 Q2 Q3 Q

18 Agenda Key figures and highlights Kongsberg Maritime - Offshore & Merchant Marine - Yachting & Fishery Kongsberg Defence & Aerospace Prospects NSM KONGSBERG August 20,

19 Defence& Aerospacehighlights NSM development Successful test firing in June Additional testing and activity to reduce risk in connection with completion and development increase project costs by MNOK 150 NSM risk Technical and financial risk reduced Although the test was successful, significant work still remains before the development project can be completed NSM production The Norwegian parliament has decided to sign a contract for the transitional phase between NSM development and production 19

20 Defence& Aerospacehighlights Good influx of new orders in military communications MNOK 140 in communications system for Rumania MNOK 126 in communications equipment for Saudi Arabia MNOK 175 in weapons control system for the US Army Development contracts totalling MNOK 110 for SLAMRAAM anti-aircraft system for the USA with substantial potential Personnel cuts corresponding to 137 man-years of labour 20

21 Defence & Aerospace EBITA (accumulated) Operating revenues: MNOK (MNOK 1 538) New orders: MNOK 799 (MNOK 1 883) Q1-8 Q2 Q3 Q KONGSBERG August 20,

22 Agenda Key figures and highlights Kongsberg Maritime - Offshore & Merchant Marine - Yachting & Fishery Kongsberg Defence & Aerospace Prospects NSM KONGSBERG August 20,

23 Prospects The Board is aware that Missiles will continue to present a risk in 2004 due to the order situation for the Penguin missile. The successful test firing of the NSM missile in June reduced the risk inherent in the development programme. The shipbuilding market is buoyant, and Offshore & Merchant Marine has a good influx of new orders. Due to shipyards' limited capacity, delivery times have increased for backlog orders, limiting opportunities for short-term growth, but guaranteeing future activity. Although profitability is expected to remain satisfactory in the offshore industry, competition is becoming increasingly keener in certain product areas. The yachting market is dynamic. Yachting & Fishery's products are competitive with a view to technology and marketing alike. The season began with volume growth in the yacht market, but rising price pressures are threatening profit margins. Investment is down in the fisheries market. A number of profitability enhancement measures have been implemented to strengthen competitiveness and cut costs. Cost-cutting measures have not been implemented at the expense of product development or market initiatives. Operating revenues are lower than last year's. However, in the light of the order situation in Maritime and the measures instituted, the Board expects an operating profit close to the profit in 2003, excluding the charge of MNOK 150 linked to the NSM programme. 23

24 Agenda Key figures and highlights Kongsberg Maritime Offshore & Merchant Marine Yachting & Fishery Kongsberg Defence & Aerospace Prospects NSM KONGSBERG August 20,

25 WORLD CLASS through people, technology and dedication KONGSBERG August 20,