President and Chief Executive Officer Geir Håøy tells forum that KONGSBERG has attained increased financial results and market positions and is focused on continue exploiting new opportunities.
With the strong demand for high tech services in the defence, maritime and energy sectors, KONGSBERG is well positioned to realize its share of this demand. Central to its growth plans is its sustainability-focused strategy and creating value for both clients, shareholders and other stakeholders.
Speaking at KONGSBERG’s Capital Market Day forum in Oslo last week, Geir Håøy, CEO of KONGSBERG, said providing leading-edge technology solutions and quality delivery services have contributed to the improved financial performance.
KONGSBERG delivered top-line growth, higher profits and a strong order intake in the first half of this year. The company also strengthened its market position in all its key business areas.
Strong market and financial performance
“We have continued to grow our business organically and through the acquisitions of Rolls-Royce Commercial Marine and AIM Norway. The fact that we have managed to keep our focus on delivering value for our customers is particularly pleasing and is demonstrated by a solid first half-year performance. We are now in a position to generate even more value for our customers in the defence, maritime and energy sectors,” said Håøy.
Gyrid Skalleberg Ingerø, KONGSBERG Chief Financial Officer, commented:
“KONGSBERG has built a solid financial foundation and our business areas are performing well. As a group, KONGSBERG delivered a top-line of almost BNOK 10 for the first half of 2019 – that’s up 40% from last year.
“Given our solid financial position and high focus on profitability, coupled with the market outlook, we are confident that we will reach our ambition of achieving revenues of BNOK 30 and an EBITDA margin above 12% (excl., IFRS 16) in 2022,” added Skalleberg Ingerø.
KONGSBERG also announced its priorities on capital allocation: 1) access to funding, 2) invest organically, 3) Shareholder remunerations, and 4) M&A (mergers & acquisitions).
Kongsberg Defence and Aerospace – reaping the benefits
Several other presentations were made at the Capital Market Day forum. Eirik Lie, President of Kongsberg Defence and Aerospace (KDA), focused on developments and strategic plans for future growth.
“We are now reaping the benefits of the strategic, long-term positioning work that has taken place over recent years. We have secured major contracts this year and now have an order reserve over BNOK 19.”
Lie stressed the importance of national and international collaboration and partnerships to enhance KONGSBERG’s prospects in this important growth sector.
“The global security landscape is changing. Defence is high on national agendas with an increasing focus on implementing defence strategies, co-operations and advanced technologies and systems. This opens up huge opportunities for KDA and we are well positioned to win programs valued at BNOK 100+ over the ten years.”
Kongsberg Digital – expecting growth
“Industry players are increasingly aware and knowledgeable about the benefits of digitalization, and are looking for partners they can trust to help them on their way. A deepening in market maturity and growing digital expertise has coincided with more digital investments by major players, and a significant increase in market interest for our solutions,” Skryseth pointed out, and also highlighted the solid growth and strong market positions attained by KDI.
KONGSBERG established KDI in 2016 and since then it has made significant investments to position KDI as a frontrunner when it comes to digitalizing the industries it serves.
“Over the past few years we have developed next generation products and services, including the Kognifai industrial digital ecosystem, the Dynamic Digital Twin for oil & gas production and Vessel Insight, a data infrastructure solution for the maritime sector, that we recently launched. All have been well received in the market".
"In the case of Vessel Insight, we leverage Kongsberg Maritime’s installed automation and controls equipment base of more than 30,000 vessels to provide customers with a cost-efficient way of making their ships digital ready. This example perfectly illustrates how KONGSBERG’s combined technology legacy, domain expertise and market footprint gives us a unique position in delivering digitalization solutions to the industries", said Skryseth.
Kongsberg Maritime – adapting to changing markets
As well as operations, Kongsberg Maritime (KM) is delivering on the largest integration in the Kongsberg Group’s history.
“The acquisition of Commercial Marine was announced a little over a year ago and we have already managed to deliver a positive underlying EBITDA in Q2,” said Egil Haugsdal, President Kongsberg Maritime.
Parallel to the ongoing integration work, KM is focused on providing cost savings in technology development, and increased capacity to develop solutions further to meet the market demand for enhanced optimization, security and sustainability.
“We believe the increasingly challenging and sustainability-focused environment for our customers will lead to higher expectations and requirements from their suppliers and partners. Having foresight on new developments and the ability to adapt and drive change will be even more important going forward,” said Haugsdal.
Following the acquisition of Commercial Marine “Kongsberg Maritime has become a more complete, more competitive, and more robust supplier of products and services to all vessel segments. This makes us confident that we will generate more shareholder value and remain a frontrunner on sustainable technology development and solutions,” said Haugsdal
“By rationalizing our research and development efforts between and within our businesses, we are now moving faster than ever,” said Group CEO Geir Håøy.
“The world is changing – for the better in some respects, not so much in others. But our ability to respond agilely to these changes means that we view them more as opportunity than threat.
“The strong technology foundation we have in KONGSBERG has gained us a lot of success. By utilizing this further, coupled with our strong market positions and financial solidity, I’m confident that we will generate value for our customers and stakeholders going forward,” concluded Håøy.