INTERVIEW: PER HAAGENSEN

STILL UNDER-ANALYSED

Too few analysts follow the KONGSBERG share actively. Although liquidity has picked up, most securities houses require even more liquidity to provide coverage. Some investors stay away for ethical reasons, while others are sceptical to the risk ensuing from the political ties related to weapons production. What is more, the pricing is not fair when such a small part of the company's shares is actually subject to trading.

All the same, we have noted growing interest. The rise in the share price and the company's more proactive Investor Relations work have helped. KONGSBERG is currently engaged in a constructive learning process. Today's ownership structure does not allow great changes when it comes to liquidity, but one possible tactic could be to split the share, for example, 1:3.

In my experience, KONGSBERG has become better and clearer in its communication with the financial market. Their presentations and Capital Markets Days are well attended. They have also got better at explaining what drives asset appreciation and earnings in the business areas. They might also benefit from providing more detailed breakdowns of sales and giving more details about tied-up capital, e.g. broken down by areas of activity.

There are strong indications that the company has been beat to the finish line on several of its takeover bids. That has not necessarily been a bad thing. Perhaps quite to the contrary, inasmuch as it has allowed the company the time and space to develop opportunities inherent in existing activities. By the way, I would prefer that instead of expressing growth and revenues goals, the company would set some profitability goals, for example, targets related to the return on average capital employed.

KONGSBERG has expanded in a bull market in recent years, and has been good at taking advantage of this. Ever fuller order books at Kongsberg Maritime and attractive new products in the defence segment have brought good results. However, everything has not gone their way, for instance, the USD exchange rate. That being said, I am impressed that the company is actually earning more now than it did when the USD exchange rate was high.