kongsberg maritime · 24-09-2019 · cm icon km k-pos cm poscon km c -pos joy/c wing cm mcon cm...
TRANSCRIPT
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. Any authorised reproduction in whole or in pa rt, must include this legend.
© 2019 KONGSBERG – All rights reserved.
Egil Haugsdal
President Kongsberg Maritime
24/09/2019
KONGSBERG MARITIME
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
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 information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give assurance to the correctness of such information and statements. These forward-looking information and statements can generally be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use terminology such as "targets", "believes", "expects", "aims", "assumes", "intends", "plans", "seeks", "will", "may", "anticipates", "would", "could", "continues", "estimate", "milestone" or other words of similar meaning and similar expressions or the negatives thereof.
By their nature, forward-looking information and statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements that may be expressed or implied by the forward-looking information and statements in this presentation. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove to be incorrect, the Company's actual financial condition or results of operations could differ materially from that or those described herein as anticipated, believed, estimated or expected.
Any forward-looking information or statements in this presentation speak only as at the date of this presentation. Except as required by the Oslo Stock Exchange rules or applicable law, the Company does not intend, and expressly disclaims any obligation or undertaking, to publicly update, correct or revise any of the information included in this presentation, including forward-looking information and statements, whether to reflect changes in the Company's expectations with regard thereto or as a result of new information, future events, changes in conditions or circumstances or otherwise on which any statement in this presentation is based.
Given the aforementioned uncertainties, prospective investors are cautioned not to place undue reliance on any of these forward-looking statements.
2
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 3
KEY TAKEAWAYS
We are a frontrunner onsustainable technology
development
We adapt to changingmarkets
We will generateshareholder value
through the Commercial Marine acquisition
KONGSBERG
MARITIME
Systems on30,000+ vessels
Employees7,300+ people
117 offices in34 countries
Experience80+ years
BNOK 17+Revenues
4
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 5
KONGSBERG MARITIMEBusiness units
INTEGRATED SOLUTIONS GLOBAL CUSTOMER SUPPORT
PROPULSION & ENGINES SYSTEMS & DECK MACHINERY SENSORS & ROBOTICS
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 6
FURTHER GROWTH OPPORTUNITIES
▪ US NAVY UNDERWATER
▪ EUROPE UNDERWATER
‐ CIVIL AND DEFENCE
THE AUTONOMY OF DEPTHGLOBAL NO. 1
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 7
WE ARE USED TO NAVIGATING IN CYCLICAL MARKETS
6,5 %
8,2 %
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000M
NO
K
LTM Order Intake
LTM Revenues
LTM EBITDA %
LTM Underlying EBITDA %
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
AGENDA
1. A FRONTRUNNER ON SUSTAINABLE TECHNOLOGY DEVELOPMENT
2. A BRIEF OVERVIEW OF OUR MARKETS
3. ROADMAP
4. KM + CM ➔ A PERFECT FIT
8
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
MY GARAGE!
9
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 10
OUR TECHNOLOGY DEVELOPEMENT DRIVES GROWTH
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
KM IS A TECHNOLOGY COMPANY
11
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
THE OCEAN INDUSTRY IS CHANGING
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
DIGITALIZATIONSUSTAINABILITY
12
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
THE DRIVE FOR SUSTAINABLE DEVELOPMENT
13
ENVIRONMENTAL AWARENES
ENERGY USAGE AND INTELLIGENCE
IMO 2020
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
LIFE CYCLE EMISSIONSWell to wake – GHG emissions
14
-60, -50, -40, -30, -20, -10, 0, 10, 20, 30, 40, 50, 60, 70, 80, 90, 100,110,120,130,140,150,160,170,180,190,200,210,220,230,240,250,260,
HFO
MGO
LSFO
LNG (imported)
LNG (local)
LPG
MeOH (from CH4)
MeOH (from black liquor)
NH3 (from CH4)
Biodiesel
Bio-LNG (from waste)
Bio-LNG (from digestate storage)
H2 (CH4 steam reforming, EU)
H2 (CH4 steam reforming from waste)
H2 (electrolysis from EU grid)
H2 (electrolysis from wind energy)
Electricity [EU grid]
Electricity (Wind energy)
CO2eq emissions [g/MJ]
WELL TO TANK TANK TO WAKESource: EU Joint research centre
For zero emission TTW solutions it is crucial to
choose the correct source of electricity
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 15
MARINE FUELSToday and in a near future
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 16
WORKING WITH KONGSBERG
Market leader within automation and control systems
Extensive industry experience delivering Information Management Solutions
Open digital ecosystem with a broad range of 3rd party services
24/7 support and a global service network of maritime experts
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
AGENDA
1. A FRONTRUNNER ON SUSTAINABLE TECHNOLOGY DEVELOPMENT
2. A BRIEF OVERVIEW OF OUR MARKETS
3. ROADMAP
4. KM + CM ➔ A PERFECT FIT
17
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 18
THE MARKET: GROWTH 2005-2014, DROP 2015-2019
0
5 000
10 000
15 000
20 000
25 000
-19
40
45
-49
55
-59
65
-69
75
-79
85
-89
95
-99
05
-09
15
-19
Cargo Carrier
Tugs and Workboats
Cruise and Passenger
Supply and Service
Exploration and Production
Construction and Subsea
Fish
Special Purpose
Scrapped
0
20 000
40 000
60 000
80 000
100 000
120 000
-19
40
45
-49
55
-59
65
-69
75
-79
85
-89
95
-99
05
-09
15
-19
Cargo Carrier
Tugs and Workboats
Cruise and Passenger
Supply and Service
Exploration and Production
Construction and Subsea
Fish
Special Purpose
# of vessels by contract yearTOTAL FLEET DEVELOPMENT
by delivery year
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
Combined installed base of over 30 000 vessels across relevant market segments
19
KM installed base
> 20 000Shared installed base
~ 10 000CM installed base
> 20 000
Total combined installed base1)
> 30 000Shared base market segments2)
16%
32%
18%
17%
9%
8%
Tanker
Tug
Container
Bulk
Offshore
Other
1) Based on available IMO-numbers2) Market segment split based on reported categories,
which somewhat differ between CM and KM
Combined installed base age distribution
0
500
1.000
1.500
2.500
2.000
COMBINED INSTALLED BASE OF OVER 30 000 VESSELS ACROSS RELEVANT MARKET SEGMENTS
5 10 15 20 25 30 35 40 45
Service support and upgrades
Legacy product support and upgrades
Age (Years)
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 20
MERCHANT MARKET SCRAPPING
IMO 2020
45 000
EstimatedTOTAL MARKET
MARKET DRIVERS
Seaborn Trade
Dry Bulk Index
IMO 2020
NEWBUILD MARKET
AFTERMARKET
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
COLD/WARM STACKED
21
OFFSHORE MARKET
10 000
EstimatedTOTAL NO. VESSELS
MARKET DRIVERS
Oil Price
Expl. Activity
Day Rates
SCRAPPING
REACTIVATION
NEWBUILD MARKET
AFTER MARKET
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
AGENDA
1. A FRONTRUNNER ON SUSTAINABLE TECHNOLOGY DEVELOPMENT
2. A BRIEF OVERVIEW OF OUR MARKETS
3. ROADMAP
4. KM + CM ➔ A PERFECT FIT
22
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 23
KM ROADMAP GOING FORWARDBest long term strategy is to secure short term profitability
Deliver on target, turn around Commercial Marine
Exploit benefits of joining forces, customer value through total product portfolio and technologies
The Leading Global Supplier of Maritime Technology, shaping the maritime future.
3
2
1
Long-termMid-termShort-term
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
AGENDA
1. A FRONTRUNNER ON SUSTAINABLE TECHNOLOGY DEVELOPMENT
2. A BRIEF OVERVIEW OF OUR MARKETS
3. ROADMAP
4. KM + CM ➔ A PERFECT FIT
24
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 25
KM + RRCM = A GLOBAL LEADER – FROM BRIDGE TO PROPELLER
Shaping the maritime technologies
Two highly complementary companies
A world class combined global network covering all
continents
Synergies strengthening our competitiveness
▪ Complementarity enables scale
▪ Scale allows for more efficient operations
▪ An even more robust and competitive organization
▪ Combining the best of the maritime industry’s leading engineering capabilities
▪ Industry leadership in today’s as well as future technologies such as digitalization, remote operations and autonomy
▪ A broad range of complementary World Class maritime products
▪ Allowing for seamlessly integrated solutions throughout the vessel
▪ A strategic partner for improving efficiency and operational capabilities of the vessels
▪ A strong global sales- and service network across 34 countries
▪ Global reach, local presence – wherever the customers are
▪ Servicing a combined installed base of approximately 30,000 vessels
AUTOMATION
NAVIGATION
INTEGRATED BRIDGE SYSTEMS
DYNAMIC POSITIONING
COMPACT DP
Propulsion/Thruster /Steering Controls
KM «PCK/700» KM «C20/600»CM «CAF/ACON»
KM K-BRIDGECM 3rd party
CM Unified Bridge KM K-MASTER
KM K-POSCM ICON
KM C-POS KM C-Joy/C-WingCM Poscon
CM MCON
CM ROCCS
KM Autochief
CM Helicon
CM Steering cntrl
KM K-Thrust 720
CM Aquapilot
KM K-Steering
KM K-Thrust 600
CM Canman
KM K-Thrust RCS
ADVANCED MANEUVERING
CM
KM
SW PLATFORMS
CM CAF KM PCK/AIM KM C20/600
HW PLATFORMS
CM CCP KM PCK/AIM KM C20/600
HANDLING CONTROLS
CM CAF CM SIEMENS KM 700/600
INTEGRATION ON TRACK!- Lots of potential- No large surprises after closing- Several areas with extra attention- Effects starting to materialize
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 26
Footprint & delivery streamlining SG&A savings and synergies Product portfolio optimization
• Restructuring of the loss-making Deck Machinery and Ship Design units
• Co-location of overlapping global footprint, ~20 sites
• Move non-core production activities to supply chain
• Consolidation of delivery organizations
• Direct procurement scale savings
• Leverage scale within sales, support and administrative functions
• Cost-efficient set-up of group support functions
• Harmonize terms and benefits
• Indirect procurement scale savings
• IT infrastructure synergies
• Joint plan for digital marine development: Streamlining of overlapping efforts and prioritization of activities to market needs
• Consolidation of overlapping product portfolios - especially within automation
• Optimize product portfolio to meet future market needs
~225 MNOK ~225 MNOK ~50 MNOK
Activities:
Planned annual run-rate savings:
VALUE CAPTUREBroad range of measures initiated since Closing
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
VALUE CAPTUREProgram progressing according to plan, additional measures identified
27
Status on program execution
Realized savings YTD August of ~130 MNOK, well on trackfor ~200 MNOK effect realization for 2019 FY
Process concluded for ~180 FTEs out of the announced reduction of 260
Joint plan for digital marine development implemented
Restructuring of Deck Machinery and Ship Design progressing well
12 sites co-located to date
Significant realized savings through more cost efficient set-up of group support functions
Additional measures
• Continuous work to identify and initiate additionalmeasures
• Close-down of Gdansk site: Non-core production activityto be moved to supply chain
• Further headcount reduction of 180-200 FTEs, due to additional identified synergies and streamliningpotential
- Deck Machinery and Ship Design restructuring
- Gdansk close-down
- Optimization of global service network
• Strong comfort for realization of 2022 cost saving target
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 28
▪ Strong order intake despite challenging markets
▪ CM delivered in Q2 EBITDA MNOK 22, excl. integration and
restructuring
▪ Synergy and cost programs on plan
▪ Deck Machinery and Ship Design challenging, restructuring
program initiated
▪ Product portfolio harmonization
▪ Creating shareholder value
INTEGRATION ON PLAN
KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 29KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication
MARITIME INDUSTRY IS CHANGING,WE ARE GOING TO LEAD THE CHANGE
KONGSBERG PROPRIETARY - See Statement of Proprietary information