Annual Report and Sustainability Report 2019 2 01 Year 2019 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements
Total Page:16
File Type:pdf, Size:1020Kb
ANNUAL REPORT AND SUSTAIN ABILITY REPORT 2019 01 Year 2019 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements CORPORATE YEAR 2019 01 04 GOVERNANCE 4 Key Figures 2019 93 The Board’s Report on Corporate 7 Important milestones 2019 Governance 8 President and CEO Geir Håøy 94 Policy 95 Articles of Association 96 Board of Directors 97 The Board’s Report relating to “The Norwegian Code of Practice for Corporate Governance” DIRECTORS’ REPORT ABOUT KONGSBERG AND FINANCIAL 02 05 STATEMENTS 13 This is KONGSBERG 110 Directors’ Report 2019 15 Strategy and ambitions 128 Financial Statements and Notes 16 Vision 203 Statement from the Board 17 Our values 204 Auditor’s Report 2019 18 Corporate Executive Management 208 Financial calendar 19 Business areas 208 Contact details 29 The world of KONGSBERG 03 SUSTAINABILITY 36 About the Sustainability Report 41 Framework for the preparation of Sustainability Report 42 Organisation and Management Systems 43 Responsible Business Conduct 45 Responsible Tax – our Tax Policy 47 Focus areas 2019-2020 90 Auditor’s Report, Sustainability KONGSBERG Annual Report and Sustainability Report 2019 2 01 Year 2019 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements Key Figures 2019 Important milestones 2019 President and CEO Geir Håøy 01 YEAR 2019 KONGSBERG Annual Report and Sustainability Report 2019 3 01 Year 2019 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements Key Figures 2019 Important milestones 2019 President and CEO Geir Håøy Key Figures 2019 MNOK 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 SALES Revenues 24 081 14 381 14 490 15 845 17 032 16 613 16 323 15 652 15 128 15 497 New orders 32 452 16 574 13 430 14 319 15 238 22 097 15 043 14 605 15 016 13 584 Order backlog 33 129 17 283 15 629 16 914 19 597 21 020 15 687 16 523 17 839 17 759 Book-to-bill ratio 1.35 1.15 0.9 0.9 0.9 1.3 0.9 0.9 1.0 0.9 PERFORMANCE Earnings before interest, taxes, depreciation and amortisation (EBITDA) 2 279 1 394 1 279 1 217 1 784 2 060 2 142 2 294 2 385 2 485 Earnings before interest and taxes (EBIT) 1 183 945 772 692 944 1 258 1 659 1 840 2 026 2 113 Earnings before taxes (EBT) 967 844 654 729 944 1 285 1 644 1 809 1 991 2 097 Earnings after tax 717 704 559 651 755 880 1 225 1 304 1 418 1 500 PROFITABILITY EBITDA % 9.5% 9.7% 8.8% 7.7% 10.5% 12.4% 13.1% 14.7% 15.8% 16.0% EBIT % 4.9% 6.6% 5.3% 4.4% 5.5% 7.6% 10.2% 11.8% 13.4% 13.6% BALANCE SHEET Equity 12 810 12 626 7 365 6 725 6 127 6 282 6 657 6 274 5 484 4 881 Equity ratio % 32.5% 45.7% 35.6% 31.7% 32.0% 31.0% 38.2% 38.6% 35.1% 35.0% Net interest-bearing debt (1 565) (5 706) 384 2 195 (941) (3 551) (1 935) (1 198) (2 191) (1 813) Working capital1) 17 (14) 955 2 533 2 698 155 775 1 000 (644) (522) ROACE1) 10.0% 12.5 9.1 8.2 21.8 35.9 32.5 36.3 51.6 65.2 EMPLOYEES Number of employees, total 10 793 6 842 6 830 7 159 7 688 7 664 7 493 7 259 6 681 5 681 Number of reported injuries per million hours worked (TRI) 2.3 1.6 3.2 3.5 4.1 4.7 3.7 1.5 1.7 6.3 Number of lost time days per million hours worked (ISR) 31.4 17.6 16.2 32.0 14.2 45.3 15.6 13.6 1.1 22.3 THE ENVIRONMENT2) Energy consumption (GWh) 165.1 131.2 124.4 122.8 119.35 123.7 127.0 114.7 108.9 103.2 CO2 emissions (metric tonnes) 60 393 35 466 32 517 33 464 39 268 26 006 25 294 19 579 22 747 20 005 Waste (metric tonnes) 7 830 1 888 1 884 1 986 2 368 1 788 1 935 1 784 1 622 1 772 OWNERS’ VALUE Market capitalisation 24 839 21 167 18 120 14 940 17 400 14 760 15 300 14 940 13 920 15 960 Earnings per share after tax (EPS) in NOK 3.98 5.58 4.62 5.44 6.23 7.28 10.24 10.91 11.83 12.46 P/E in NOK 34.64 30.20 32.70 22.95 23.05 16.77 12.49 11.46 9.82 10.64 Dividend per share in NOK 2.50 2.50 3.75 3.75 4.25 9.25 5.25 3.75 3.75 3.75 1) See Note 33 for definitions. 2) Figures incl. aquired companies. See Climate and Environmental Accounts page 89 for comparable figures. KONGSBERG Annual Report and Sustainability Report 2019 4 01 Year 2019 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements Key Figures 2019 Important milestones 2019 President and CEO Geir Håøy KEY FIGURES – KONGSBERG MNOK 4,348 6,475 MNOK 6,022 759 MNOK 6,761 1,950 MNOK 5,638 1,394 REVENUES MNOK 581 20 MNOK 24,081 MNOK 328 149 MNOK 403 46 Kongsberg Defence & Aerospace 30% Kongsberg Maritime 67% Other activities 3% EBITDA EBIT PROFIT FOR THE YEAR MNOK 2,279 MNOK 1,183 MNOK 717 DIVIDEND PER SHARE EARNINGS PER SHARE AFTER TAX MARKET CAPITALISATION NOK 2.50 NOK 3.98 MNOK 24,839 HISTORICAL DEVELOPMENT 25 000 20 000 EBITDA, % 16.0% 14.7% 15 000 Revenues, MNOK 12.4% 10 000 15.8% 9.7% 9.5% 13.1% 7.7% 5 000 10.5% 8.8% 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 KONGSBERG Annual Report and Sustainability Report 2019 5 01 Year 2019 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements Key Figures 2018 Important milestones 2019 President and CEO Geir Håøy KEY FIGURESFIGURES – BUSINESS– BUSINESS AREAS AREAS Kongsberg Defence Kongsberg Other & Aerospace Maritime activities 2,917 7,212 664 REVENUES REVENUES REVENUES MNOK 7,245 MNOK 16,038 MNOK 798 +18.7% from 2018 +112.6% from 2018 +9% from 2018 EBITDA EBITDA EBITDA MNOK 1,157 MNOK 1,151 MNOK (29) +32.9% from 2018 +89% from 2018 +66.1% from 2018 NEW ORDERS NEW ORDERS NEW ORDERS MNOK 16,060 MNOK 15,469 MNOK 923 +133.3% from 2018 +74.1% from 2018 +14.6% from 2018 KONGSBERG Annual Report and Sustainability Report 2019 6 01 Year 2019 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements Key Figures 2019 Important milestones 2019 President and CEO Geir Håøy Important milestones 2019 KONGSBERG • Strong growth, both organic and through acquisitions. • Closed two acquisitions: Rolls-Royce Commercial Marine and Aerospace Industrial Maintenance. • Entering 2020 with a record high order backlog. • Became a significantly larger company and a more complete supplier within our product areas. KONGSBERG DEFENCE & AEROSPACE • Won KONGSBERG’s largest contract ever for an air defence system for Qatar with a value of NOK 5.6 billion. • Other important contracts include NASAMS to Australia, JSM to Japan, mobile ground based air defense to the Norwegian defense and several contracts for remote-controlled weapon stations (RWS). • Good growth and profitability and high levels of activity. • Order intake of NOK 16 billion and an order backlog of NOK 20 billion at the year-end. KONGSBERG MARITIME • The integration of Commercial Marine was the largest ever integration in KM. MNOK 260 of cost synergies were realised in 2019. The aim to realise a total of MNOK 500 has been brought forward by two years and will be realised by the end of 2020. • The business area is growing in 2019, also adjusted for acquisitions. There is a strong order intake, despite the new-build market being generally sluggish. • Successful delivery of comprehensive KONGSBERG technology for Johan Sverdrup field phase 1 and the start of phase 2. • Awarded contract for state-of-the-art semi-submersible drilling rig worth MNOK 350 for Keppel Offshore & Marine. KONGSBERG DIGITAL • Kognifai Dynamic Digital Twin contract with Norske Shell for the Nyhamna gas production plant and a digitalisation partnership with Shell. • Launch of Vessel Insight, a data infrastructure solution for the maritime sector. • Turnover: MNOK 800, 25 per cent growth. KONGSBERG Annual Report and Sustainability Report 2019 7 01 Year 2019 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements Key Figures 2019 Important milestones 2019 President and CEO Geir Håøy President and CEO Geir Håøy During the course of 2019, we have become a significantly larger supplier to the maritime industry. We have been heavily involved in the maintenance of military aircraft and helicopters, and we have an increased order backlog through large and small contracts. At the time of writing, close to one year have passed since Rolls-Royce Commercial Marine was incorporated into Kongsberg Maritime. With this acquisition, we have doubled our sales in the maritime sector and gained a significantly stronger foothold in the maritime industry. We have strengthened our product port- folio, gained valuable expertise and are providing even more services.