SHARES AND SHAREHOLDERS
KONGSBERG's share price climbed from NOK 175 at year-end 2006 to NOK 339 at year-end 2007. Including dividends of NOK 2.50 per share, shareholders got a 95 per cent return on investments in 2007.
Shareholder policy
KONGSBERG's paramount objective is to enhance shareholder value. The Group's primary focus is on its two business areas (BAs): Kongsberg Maritime and Kongsberg Defence & Aerospace. KONGSBERG plans to grow organically and through acquisitions in selected strategic market segments.
KONGSBERG attaches a great deal of importance to keeping the equity market and the communities in which the Group operates well informed about the Group's profit trends and prospects for the future. The information will at all times be relevant and timely. It will be published in a manner that guarantees equal treatment, credibility and predictability, while creating a sound platform for the equity market's valuation of the Group. KONGSBERG strives to ensure a long-term competitive return on shareholders' investments, which is commensurate with the risk involved.
The return on investments is a combination of the share price trend and the dividends paid to shareholders. The Group's goal is that 30 per cent of the Group's annual profit from ordinary operations, after tax, be returned to the shareholders as dividends.
Dividends and earnings per share
Dividends have been paid every year since 1993, with the exception of 2000 and 2001, and the dividends have averaged approx. 30 per cent of the Group's net profit.
The ordinary AGM will be held on 24 April 2008. The Board of Directors will propose a dividend of NOK 5.00 per share. Any dividends adopted will be paid on 7 May 2008 to those listed as shareholders in Kongsberg Gruppen ASA on 24 April 2008. Upon payment of dividends to foreign shareholders, a deduction will be made for Norwegian withholding tax, pursuant to provisions. The company's shares will be listed on the Oslo Stock Exchange excluding dividends as from 25 April 2008.
Dividends and earning per share
| Amounts in NOK | 2007 | 2006 | 2005 | 20041) | 20033) | 20023) | 20013) | 20003) | 19993) |
| Earnings per share | 16.17 | 8.30 | 7.19 | 3.66 | 4.23 | 7.21 | 4.18 | (1.86) | 8.84 |
| Dividend | 5.00 | 2.50 | 2.15 | 2.002) | 1.30 | 2.10 | - | - | 2.25 |
1) The figures have been adjusted for the effects of the transition to IFRS and the sale of yachting activities.
2) Dividends for 2004 were proposed on the basis of the result prior to the MNOK 150 charge related to the NSM project.
3) The figures have not been adjusted for effects in connection with the transition to IFRS, but are presented according to NGAAP and include yachting activities.
Share price trends in 2007
Market capitalisation increased by 93.7 per cent on the year, from MNOK 5 250 to MNOK 10 170. The Group was launched on the Oslo Stock Exchange on 13 December 1993 with a market capitalisation of MNOK 643.
The total return on the share since its Stock Exchange launch was 1 133 per cent at year-end 2007. During the same years, the All-Share Index on the Oslo Stock Exchange has climbed by 522 per cent.
The share had a positive trend in 2007, ending the year at NOK 339 after ending 2006 at NOK 175. The Oslo Stock Exchange All-Share Index and the Industrial Index rose by 11.5 per cent and 42.5 per cent, respectively, during the same period.
Share price data by quarter 2007
| Amounts in NOK | Q407 | Q307 | Q207 | Q107 |
| Opening share price | 274.0 | 245.0 | 186.0 | 175.0 |
| Closing share price | 339.0 | 274.0 | 245.0 | 186.0 |
| Investment performance during the period | 23.7% | 11.8% | 31.7% | 6.3% |
| Highest closing rate | 345.0 | 282.0 | 245.0 | 190.0 |
| Lowest closing rate | 276.0 | 227.0 | 185.0 | 167.0 |
| Average closing rate | 321.0 | 258.0 | 216.6 | 178.6 |
| Median | 325.5 | 260.0 | 214.0 | 180.0 |
| Volume (in 1 000 shares) | 1 631 | 1 064 | 1 155 | 389 |
The share's liquidity
In 2007, approx. 4.2 million KONGSBERG shares were traded in 5 158 transactions. The total value of the shares traded was MNOK 1 137. In 2006, the total value of trading was MNOK 433.
In the early half of 2007, KONGSBERG was noted on the OB Standard list (shares with an average of fewer than 10 trading transaction per day). In June, KONGSBERG was promoted to the OB Match list (shares with an average of more than 10 transactions per day). The structure of the Oslo Stock Exchange lists is reconsidered semi-annually, based on transactions during the preceding half year. KONGSBERG is still listed on the OB Match list. The Group continues its efforts to promote interest in the share.
Share capital
Kongsberg Gruppen ASA has share capital of MNOK 150, divided among 30 million shares with a nominal value of NOK 5 per share. There is just one class of shares, and there are no limitations on voting rights. When launched on the Stock Exchange on 13 December 1993, the Group had 5.85 million shares with a nominal value of NOK 20. In 1999, the number of shares was increased to 6 million in connection with a share issue directed at the employees. In May 1997, the share was split into four, increasing the number of shares to 24 million with a nominal value of NOK 5 per share. All key figures for 1997 and earlier years have been adjusted accordingly. In July 1999, six million new shares were issued, bringing the total up to the current level of 30 000 000 shares.
Employee share and option programmes
The Group's annual employee share programme was conducted in summer 2007. This was the eleventh time all employees were given the opportunity to buy Group shares at a 20 per cent discount. A total of 144 112 shares were sold at a price of NOK 168. Shares were allocated to 875 employees. The 2007 programme did not include options, although they have been part of preceding programmes. As from 2007, the Group will no longer be awarding options in connection with its annual share programme. In November 2007, there was an additional sale to three employees of a total of 270 shares. These shares were sold at a price of NOK 272 per share.
In connection with the employee share programme in 2005, all those who bought shares were allocated a number options corresponding to half the number of shares purchased. The strike price for these options was NOK 106. Upon expiry of the options, the share price was NOK 242.50. Employees had a choice between purchasing the shares at the agreed price or receiving a cash settlement for the increased value. There were 128 employees who chose to purchase a total of 20 941 shares in connection with this programme.
At 31 Dec. 2007, more than 1 000 employees own a total of approx. 650 000 shares. This corresponds to 2.2 per cent of the shares in KONGSBERG.
Treasury shares
KONGSBERG's ordinary Annual General Meeting held on 8 May 2007 authorised the Board to buy treasury shares. The authorisation is limited 5 per cent of the share capital and applies for 12 months from the date of the general meeting. At 31 December 2007, KONGSBERG owned a total of 18 585 treasury shares. Acquired shares may only be disposed of on the market, as payment for acquisitions, or through the option and share scheme for employees.
Shares owned by Board members and management
For information about shares owned by directors and corporate executive management, see Note 32 to the consolidated accounts.
Investor relations
KONGSBERG furnishes the equity market with relevant, comprehensive information as the basis for a balanced, correct valuation of the share. The Group attaches importance to maintaining an open dialogue with the equity market and media through stock exchange bulletins, press releases and other media initiatives, as well as through presentations for analysts and investors. The Group's website at www.kongsberg.com features a special section on investor relations which contains the Group's annual reports, interim reports and presentation material. The Group has been awarded distinctions for Good Information and Good English by the Oslo Stock Exchange.
During 2007, KONGSBERG organised a number of presentations in Norway and abroad. KONGSBERG aspires to be accessible to the market, and corporate management or parts of it are present at most of these events. The quarterly presentations are made available through webcasts. In September 2007, KONGSBERG organised Capital Markets Day at the Group's premises in Kongsberg. The event was well attended. There were presentations by several members of corporate management, as well as a guided tour of the facility and product demonstrations. The Group also plans to organise a Capital Markets Day in 2008.
Breakdown of shareholders by size of stake at 31 Dec. 2007
| Stake | Number of shareholders | % of total number of shareholders | % of number of shares |
| 1–1 000 | 4 859 | 90.48% | 2.86% |
| 1 001 – 10 000 | 424 | 7.90% | 3.23% |
| 10 001 – 100 000 | 70 | 1.30% | 8.33% |
| 100 001 – 1 000 000 | 11 | 0.25% | 14.71% |
| Over 1 000 000 | 4 | 0.07% | 70.90% |
Capital Markets Day in September was well attended.
Historical share information
| Amounts in NOK | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1993 |
| Market capitalisation 31 Dec. | 10 170 | 5 250 | 3 720 | 2 970 | 3 180 | 2 715 | 2 895 | 2 550 | 6432) |
| Change during the year | 93.7% | 41.1% | 25.3% | (4.8%) | 17.1% | (6.2%) | 13.5% | (32.5%) | - |
| Closing share price, 31 Dec. | 339.00 | 175.00 | 124.00 | 99.00 | 106.00 | 90.50 | 96.50 | 85.00 | 32.25 |
| Closing share price, 1st trading day | 170.00 | 125.00 | 99.00 | 104.00 | 90.50 | 102.00 | 86.50 | 127.00 | 27.52) |
| Highest closing share price | 345.00 | 175.00 | 132.00 | 116.00 | 110.00 | 118.00 | 115.00 | 127.00 | 32.5 |
| Lowest closing share price | 167.00 | 122.00 | 91.00 | 76.75 | 74.00 | 86.00 | 83.00 | 80.00 | 30.25 |
| Average closing share price | 243.51 | 145.79 | 108.34 | 92.21 | 88.97 | 102.26 | 99.80 | 101.30 | 31.1 |
| Number of shares traded (in 1 000) | 4 235 | 2 990 | 5 297 | 7 861 | 11 736 | 2 458 | 9 379 | 9 278 | |
| As a % of bonus shares1) | 28% | 20% | 35% | 52% | 78% | 16% | 63% | 62% | |
| Number of transactions | 5 158 | 1 980 | 3 345 | 4 552 | 4 329 | 1 558 | 2 274 | 3 305 | |
| Number of trading days | 242 | 225 | 247 | 252 | 238 | 218 | 231 | 250 | |
1) Of the shares in circulation. The State's interest of 50.001 per cent (15 000 400 shares) is not included.
2) Stock Exchange launch on 13 December 1993.
List of the principal shareholders at 18 February 2008
| Shareholder | Number of shares | % share |
| Norw. Govt. Repr. by the Ministry of Trade and Industry | 15 000 400 | 50.00% |
| Norw. National Insurance Fund | 2 676 810 | 8.92% |
| Arendals Fossekompani ASA | 2 388 199 | 7.96% |
| MP Pensjon | 1 203 200 | 4.01% |
| Skagen Vekst | 811 400 | 2.70% |
| Odin Norge | 724 690 | 2.42% |
| Orkla ASA | 700 200 | 2.33% |
| Odin Norden | 500 807 | 1.67% |
| Ferd AS | 500 000 | 1.67% |
| Vital Forsikring | 373 677 | 1.25% |
| Total, 10 largest shareholders | 24 879 383 | 82.90% |
| Total number of shares | 30 000 000 | 100.00% |