ANNUAL REPORT and SUSTAIN- ABILITY REPORT 2017 01 Year 2017 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements
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ANNUAL REPORT AND SUSTAIN- ABILITY REPORT 2017 01 Year 2017 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements 01 02 3 YEAR 2017 13 ABOUT KONGSBERG 4 Key figures 2017 14 This is KONGSBERG 7 Important milestones 2017 16 Strategy and ambitions 8 President and CEO Geir Håøy 17 Vision 18 Our values 19 Corporate Executive Management 20 Business areas 30 The world of KONGSBERG 03 04 36 SUSTAINABILITY 73 CORPORATE GOVERNANCE 37 About the sustainability report 74 The Board’s report on 38 Framework for the preparation of corporate governance sustainability report 75 Policy 39 Responsible business conduct 76 Articles of association 40 Responsible taxation 77 Board of Directors 41 Organisation and management systems 78 The Board’s report relating 42 Focus areas to “The Norwegian code of 65 Climate statement and key figures practice for corporate 72 Auditor’s Report governance” 05 90 DIRECTORS’ REPORT AND FINANCIAL STATEMENTS Interactive PDF with bookmarks Navigate in Contents and hyperlinked text (hyperlinks are underlined). You 91 Directors’ Report 2017 can browse one page back or forward 106 Financial Statements and Notes by using the arrows in the top 174 Statement from the Board right-hand corner. Use the menu 175 Auditor’s Report 2017 button on the far left to go back to the table of contents. The chapters are also bookmarked, and you can find 180 Financial calendar short cuts to these in the left-hand 180 Contact menu of the PDF Reader. KONGSBERG Annual Report and Sustainability Report 2017 2 01 Year 2017 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements Key figures 2017 Important milestones 2017 President and CEO Geir Håøy 01 Year 2017 KONGSBERG Annual Report and Sustainability Report 2017 3 01 Year 2017 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements Key figures 2017 Important milestones 2017 President and CEO Geir Håøy Key figures 2017 MNOK 2017 2016 2015 2014 2013 20121) 20111) 2010 2009 2008 SALES Revenues 14 490 15 845 17 032 16 613 16 323 15 652 15 128 15 497 13 816 11 056 New orders 13 430 14 319 15 238 22 097 15 043 14 605 15 016 13 584 17 605 14 635 Order backlog 15 629 16 914 19 597 21 020 15 687 16 523 17 839 17 759 19 892 16 692 Book-to-Bill Ratio 0.9 0.9 0.9 1.3 0.9 0.9 1.0 0.9 1.4 1.5 PERFORMANCE Earnings before interest, taxes, depreciation and amortisation (EBITDA) 1 279 1 217 1 784 2 060 2 142 2 294 2 385 2 485 1 619 1 319 Earnings before interest, taxes and amortisation (EBITA) 886 835 1 405 1 718 1 797 1 971 2 123 2 216 1 376 1 122 Earnings before interest and taxes (EBIT) 772 692 944 1 258 1 659 1 840 2 026 2 113 1 263 1 038 Earnings before taxes (EBT) 654 729 944 1 285 1 644 1 809 1 991 2 097 1 169 861 Profit for the year 559 651 755 880 1 225 1 304 1 418 1 500 828 587 PROFITABILITY EBITDA % 8.8% 7.7% 10.5% 12.4% 13.1% 14.7% 15.8% 16.0% 11.7% 11.9% EBITA % 6.1% 5.3% 8.2% 10.3% 11.0% 12.6% 14.0% 14.3% 10.0% 10.1% EBIT % 5.3% 4.4% 5.5% 7.6% 10.2% 11.8% 13.4% 13.6% 9.1% 9.4% BALANCE SHEET Equity 7 365 6 725 6 127 6 282 6 657 6 274 5 484 4 881 3 726 1 894 Equity ratio % 35.4 31.7 32.0 31.0 38.2 38.6 35.1 35.0 30.0 15.0 Net interest-bearing debt 384 2 195 (941) (3 551) (1 935) (1 198) (2 191) (1 813) (634) 1 439 Working capital1) 955 2 533 2 698 155 775 1 000 (644) (522) (220) 992 ROACE2) 9.1 8.2 21.8 35.9 32.5 36.3 51.6 65.2 34.8 30.8 EMPLOYEES Number of employees, total 6 830 7 159 7 688 7 664 7 493 7 259 6 681 5 681 5 423 5 243 Number of reported injuries per million hours worked (TRI) 3.2 3.5 4.1 4.7 3.7 1.5 1.7 6.3 5.5 3.5 Number of lost time days per million hours worked (ISR) 16.2 32.0 14.2 45.3 15.6 13.6 1.1 22.3 58.2 5.6 THE ENVIRONMENT Energy consumption (GWh) 124.4 122.8 119.35 123.7 127.0 114.7 108.9 103.2 100.0 74.4 CO2 emissions (metric tonnes) 32 517 33 464 39 268 26 006 25 294 19 579 22 747 20 005 12 980 7 801 Waste (metric tonnes) 1 884 1 986 2 368 1 788 1 935 1 784 1 622 1 772 1 473 1 256 OWNERS’ VALUE Market capitalisation 18 120 14 940 17 400 14 760 15 300 14 940 13 920 15 960 10 590 9 840 Earnings per share after tax (EPS) in NOK 4.62 5.44 6.23 7.28 10.24 10.91 11.83 12.46 6.83 4.86 P/E in NOK 32.70 22.95 23.05 16.77 12.49 11.46 9.82 10.64 12.92 16.87 Dividend per share in NOK 3.75 3.75 4.25 9.25 5.25 3.75 3.75 3.75 2.00 1.38 1) The figures have been revised in accordance with the description in Note 32. For other years, this change has not been taken into account. 2) See note 32 for definitions. KONGSBERG Annual Report and Sustainability Report 2017 4 01 Year 2017 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements Key figures 2017 Important milestones 2017 President and CEO Geir Håøy KEY FIGURES 2017 – KONGSBERG MNOK 2,772 REVENUES MNOK 4,448 MNOK 14,490 MNOK 3,569 MNOK 2,974 Kongsberg Defence & Aerospace 44% MNOK 374 Kongsberg Maritime 51% Other 5% MNOK 194 MNOK 159 EBITDA EBIT PROFIT FOR THE YEAR MNOK 1,279 MNOK 772 MNOK 559 20 000 16.0% 15 000 14.7% 11.9% 15.8% 12.4% EBITDA, % 10 000 13.1% 8.8% Revenues, MNOK 11.7% 7.7% 5 000 10.5% 0 08 09 10 11 12 13 14 15 16 17 EARNINGS PER SHARE MARKET DIVIDEND PER SHARE AFTER TAX CAPITALISATION NOK 3.75 NOK 4.62 MNOK 18,120 NUMBER OF EMPLOYEES South 6,830 Norway Europe America America Asia Australia Africa 4,421 535 656 100 1,104 8 6 KONGSBERG Annual Report and Sustainability Report 2017 5 01 Year 2017 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements Key figures 2017 Important milestones 2017 President and CEO Geir Håøy KEY FIGURES 2017 – BUSINESS AREAS Kongsberg Defence Kongsberg Other & Aerospace Maritime activities REVENUES REVENUES REVENUES 12000 12000 12000 9600 9600 9600 7200 7200 7200 4800 4800 4800 2400 2400 2400 0 0 0 MNOK 6,333 MNOK 7,429 MNOK 728 +0.3% from 2016 -13.6% from 2016 -21.9% from 2016 EBITDA EBITDA EBITDA 1500 1500 1500 1200 1200 1200 900 900 900 600 600 600 300 300 300 0 0 0 MNOK 702 MNOK 642 MNOK -65 -24.4% from 2016 +129.3% from 2016 -822.2% from 2016 NEW ORDERS NEW ORDERS NEW ORDERS 12000 12000 12000 9600 9600 9600 7200 7200 7200 4800 4800 4800 2400 2400 2400 0 0 0 MNOK 5,376 MNOK 7,336 MNOK 717 -0.9% from 2016 -7.6% from 2016 -24.8% from 2016 NUMBER OF EMPLOYEES NUMBER OF EMPLOYEES NUMBER OF EMPLOYEES 2,421 3,819 590 KONGSBERG Annual Report and Sustainability Report 2017 6 01 Year 2017 02 About 03 Sustainability 04 Corporate 05 Directors’ Report and KONGSBERG Governance Financial Statements Key figures 2017 Important milestones 2017 President and CEO Geir Håøy Important milestones 2017 KONGSBERG • Adapting: Organisational restructuring to further increase competiveness • Delivering: Strong focus on project execution • Positioning: Important positions for future earnings achieved in all Business Areas KONGSBERG DEFENCE & AEROSPACE • Joint Venture, kta Naval systems, established with tyssenkrupp Marine Systems and ATLAS ELEKTRONIK to provide Submarine Combat System • NSM selected as standard missile for the German Navy • Signed contracts with Lithuania and Indonesia for the NASAMS Air Defence System. Selected as the preferred supplier of air defence systems to Australia, and mobile air defence systems to Norway • Positioned for further success in the F-35 program with Australia signing in as JSM partner and successful ramp-up of the F-35 part production with zero defect • Framework agreement for helicopter maintenance of SeaKing, as well as preparation for maintenance of gear boxes to NH-90 and AW101 helicopters • Deliveries to the first global satellite-based world wide web KONGSBERG MARITIME • KONGSBERGs integrated vessel solutions is a new approach to the design and construction of vessels that utilise the integration between systems to achieve operational effectiveness and reduced life cycle costs. KONGSBERG signed four integrated vessel solution contracts in 2017 • The Norwegian Navy has signed a contract with KONGSBERG for delivery of four complete HUGIN AUV system • Partnership agreement with Yara to build “Yara Birkeland”, the world first autonomous zero-emission containership.