Annual Report and Sustainability Report 2015

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Annual Report and Sustainability Report 2015 Forside n ANNUAL REPORT AND SUSTAINABILITY REPORT 2015 DIRECTORS’ ABOUT REPORT & CORPORATE SUSTAINABILITY KONGSBERG FINANCIAL GOVERNANCE STATEMENTS <HLInnhold Destination> hel rapport ABOUT KONGSBERG • KEY FIGURES • CEO • DIRECTORS’ REPORT & FINANCIAL STATEMENTS • CORPORATE GOVERNANCE • SUSTAINABILITY Content DIRECTORS’ ABOUT REPORT & CORPORATE SUSTAINABILITY KONGSBERG FINANCIAL GOVERNANCE STATEMENTS 3 About KONGSBERG 14 Directors’ Report 2015 93 The Board’s report on 107 About the Sustainability Corporate Governance report and content 5 Vision, goals and values 29 Financial statements 94 Policy – Kongsberg Gruppen 123 Sustainable innovation 7 Key figures 2015 89 Statement from the Board of Directors 95 Articles of Association 129 What have we achieved? 10 CEO Walter Qvam – Kongsberg Gruppen ASA Area of focus 2015–2016 90 Auditor’s Report 2015 96 The Board’s report on the 139 Climate and environment Norwegian Code of Practice for Corporate Governance 143 Goals and reporting 157 Auditor’s Statement 2015 This is an interactive PDF with bookmarks Navigate in Contents and hyperlinked text (hyperlinks are underlined by a dashed line). You can browse one page back or forward by using the arrows in the top left-hand corner. Use the menu button on the far left to go back to Contents. The chapters are also bookmarked, and you can find shortcuts to these in the left-hand menu of the PDF Reader.meny. 2 KONGSBERG • Annual Report and Sustainability Report 2015 ÅR - Dette er KONGSBERG ABOUT KONGSBERG • KEY FIGURES • CEO • DIRECTORS’ REPORT & FINANCIAL STATEMENTS • CORPORATE GOVERNANCE • SUSTAINABILITY Kongsberg Gruppen Kongsberg Gruppen (KONGSBERG) is an international technology corporation that delivers advanced and reliable solutions that improve safety, security and performance in complex operations and during extreme conditions. KONGSBERG works with demanding customers in the global defence, maritime, oil and gas and aerospace industries. KONGSBERG’s solutions contribute to safer, more efficient are of strategic importance to our customers. We also supply operations at sea, on land and in space. Whether we are technological solutions for global challenges such as talking about defence, the merchant marine, the exploitation environmental monitoring and resource management. of oil and gas resources or fisheries resources, our products Kongsberg Maritime Kongsberg Defence Systems Kongsberg Protech Systems Kongsberg Oil & Gas Offshore Missile Systems Technologies Merchant Marine Naval Systems Subsea Integrated Defence Systems Emerging Business Aerostructures Defence Communications Space & Surveillance • Develops and delivers • Premier supplier of defence • Is the world’s leading supplier • Delivers innovative solutions positioning, surveillance, and aerospace-related of remotely controlled for oil and gas operations, navigation and automation systems. The portfolio weapon stations. including drilling, production systems for merchant vessels comprises products and • Main product is the and subsea development and the offshore industry. systems for command and PROTECTOR Remote projects. • Is a market leader in dynamic control, weapons guidance Weapon Station. The system • Integrates software and positioning, automation and and surveillance, communica- enhances safety for military services with products for surveillance systems, process tions solutions and missiles. personnel. increased oil production, automation, fisheries, satellite • Has the expertise and efficiency, safety and navigation and hydroacous- production facilities to make environmental protection. tics, as well as back-deck advanced composite and handling equipment for use engineering products for the on offshore vessels. aircraft, offshore and helicopter markets. 3 KONGSBERG • Annual Report and Sustainability Report 2015 <HL Destination> ABOUT KONGSBERG • KEY FIGURES • CEO • DIRECTORS’ REPORT & FINANCIAL STATEMENTS • CORPORATE GOVERNANCE • SUSTAINABILITY Organization Value is also created through the importance we attach to The Group is divided into four business areas and a Corporate research and development. Centre. The four business areas are Kongsberg Maritime, Kongsberg Defence Systems, Kongsberg Protech Systems Sustainability and Corporate Social Responsibility and Kongsberg Oil & Gas Technologies. The Corporate Sustainability and corporate social responsibility are important Centre provides staff and support functions to the business topics for KONGSBERG and will be key to our strategy. areas. The corporate staff have expertise in financial affairs, The perspective of opportunities is based on sustainable business development, investor relations, corporate law, innovation and business opportunities related to global mega corporate social responsibility, communication and HR. trends and climate change. This perspective will be given considerable attention. The perspective of risk consists of Ownership structure keeping our “licence to operate”, i.e. to operate in accordance Kongsberg Gruppen ASA is listed on the Oslo Stock with international guidelines related to corporate social Exchange and is subject to Norwegian securities legislation responsibility and equivalent expectations from our key and stock exchange regulations. The Norwegian state owns stakeholders. We are an important player in many local 50.001 per cent of the shares in the company. communities around the world. That implies an obligation. Companies that engage in international activities have a Financial value added special duty to ensure responsible operation. We live in an At KONGSBERG, we create value in the areas and countries era in which climate change, shortages of clean water and in which we operate. First, we create value for our customers poverty are formidable global challenges. In addition, several through our products. Then we create value through the countries are experiencing debt crises, refugee crisis and payment of dividends to owners and wages to employees, instability. These challenges also affect KONGSBERG’s and indirectly by buying goods and services from suppliers. activities, directly or indirectly. KONGSBERG’s global presence Svalbard Norway Finland Sweden Russia Canada UK Denmark Ireland Poland Germany Netherlands Hungary USA France Spain Italy Greece South Korea Kuwait China Algeria UAE Mexico Saudi Arabia India Nigeria Malaysia Singapore Brazil Australia South Africa Antarctica 4 KONGSBERG • Annual Report and Sustainability Report 2015 ÅR - Visjon, ambisjoner og verdier ABOUT KONGSBERG • KEY FIGURES • CEO • DIRECTORS’ REPORT & FINANCIAL STATEMENTS • CORPORATE GOVERNANCE • SUSTAINABILITY Vision, goals and values Extreme performance for extreme conditions KONGSBERG develops and delivers advanced systems and technologies for extreme conditions. Our solutions ensure efficiency, safety and high performance in operations ranging from deep sea to outer space. KONGSBERG’s objective is to secure and increase the stakeholders’ values through a profitable and growth oriented industrial development in a long-term and international perspective. Vision WORLD CLASS – through people, technology and dedication We have a strong, value based culture that drives our business performance. Our corporate vision reminds us where we are heading and what we are striving to achieve. 5 KONGSBERG • Annual Report and Sustainability Report 2015 <HL Destination> ABOUT KONGSBERG • KEY FIGURES • CEO • DIRECTORS’ REPORT & FINANCIAL STATEMENTS • CORPORATE GOVERNANCE • SUSTAINABILITY Ambitions KONGSBERG is a leading technology industrial group with a world-class position and a technological growth agenda. We aspire to achieve sustainable development with a good balance between financial performance, value creation and social and environmental responsibility. KONGSBERG develops and delivers value adding solutions for our customers in key technology-intensive industries. We develop superior expertise to deliver leading systems, products and services in our international market segments. It is of importance that the strategic and business related decisions made by the group are based on a sustainable perspective. • We aim for annual average growth of 10 per cent over the next five years, about half of which is organic. Organic growth is expected to increase gradually throughout the period. • We shall be a “double digit” EBITA-margin business. • We are on schedule to achieve an annual cost improvement of NOK 1 billion through our DeltaOne programme. Further cost reductions have been implemented. • New projects and initiatives will be evaluated against a 10–15 per cent requirement on capital employed dependent upon project risk. Our values DETERMINED INNOVATIVE COLLABORATIVE RELIABLE Determined Innovative Collaborative Reliable (intent, resolute, (unconventional, pioneering) (cooperative, network- (dependable, trustworthy) well-oriented) Always performing better is a oriented) Our customers and partners We are known for our drive vital part of who we are. We Collaboration is fundamental to can trust KONGSBERG to and persistence. We always constantly innovate and our business. We exchange deliver, always. Dealing with strive to meet our customers’ implement improvements in all ideas among ourselves, with our KONGSBERG means dealing expectations. We set parts of our business – from suppliers and partners, and we with reliable people, a reliable ambitious goals for ourselves our products, through our cooperate closely with our corporation and reliable and we are driven towards processes, to our customers’ customers.
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