Annual Report 2011 - Kongsberg Maritime - Kongsberg Gruppen

2 INTRODUCTION
7 DIRECTORS’ REPORT AND
18 FINANCIAL STATEMENTS
64 CORPORATE GOVERNANCE
76 FINANCIAL CALENDAR AND ADDRESSES
10
KONGSBERG Annual Report 2011
new orders during this period. Kongsberg Maritime
equipment are installed on over 14,000 sailing vessels. This
has led to a continuous increase in activity related to the
aftermarket and customer support. The activities within
seabed mapping, inspection, oceanography and fisheries,
together with the aftermarket activities, are to a limited
extent affected by the level of contracting at the shipyards.
Almost 60 per cent of Kongsberg Maritime’s deliveries are
related to the oil and offshore market. The good contracting
in this segment along with the satisfactory order
backlog in the business area, diversified product portfolio
and growing aftermarket, provides a stable basis for the
next year.
Kongsberg Maritime’s business model where parts of
the value creation are established close to the customers’
activities and sailing pattern is a key element of the
business strategy for growth and customer satisfaction.
As a consequence Kongsberg Maritime has, in recent years,
established new offices, including in India, China, Brazil,
Greece, Mexico, Malaysia and Dubai. In 2011, a new factory
in Zhenjiang, China, was opened. The factory has about
200 employees and the production includes cabinets,
sensors and boards, which are important components of
the deliveries of Kongsberg Maritime. Asia in general and
China in particular, are important future growth area of
Kongsberg Maritime. At the end of 2011 1,750 of the
employees of Kongsberg Maritime worked outside Norway.
The international establishments put Kongsberg Maritime in
a stronger position to ensure quick and effective local
support and meet the ever increasing international
competition.
The Norwegian marine and offshore industry has a
strong position and is important for the export industry.
The Board therefore emphasizes the need for industrial
politics by the government that promotes growth and
development in this sector, including competitive conditions
and financing solutions.
Kongsberg Defence Systems
2011 2010
Revenues 3 895 3 376
EBITA 263 245
EBITA-margin 6.8% 7.3%
Kongsberg Defence Systems is in the implementation
phase of large deliveries to the Poland coastal artillery,
anti-aircraft to Finland and the Naval Strike Missile (NSM)
to Norway. The projects have evolved as expected and
have passed the important milestones in 2011. New orders
were MNOK 4,061 in 2011, which is an increase of 44 per
cent compared to 2010. Revenue was up 15 per cent in
2011 and EBITA margin was 6.8 per cent (7.3 per cent).
The results for 2011 include MNOK 60 in negative impacts
related to an arbitration proceeding in Hungary. Kongsberg
Defence Systems commence 2012 with an order backlog of
MNOK 7,953, which is MNOK 20 above the previous year.
This provides a solid basis for the next few years.
Kongsberg Defence Systems has a modern product
portfolio with several newly developed systems and
systems that are at the beginning of their life cycle. These
include the anti-aircraft system NASAMS, the missiles
Naval Strike Missile (NSM) and the Joint Strike Missile
(JSM), which all have a significant potential in the international
market. The business area operates, and is well
positioned within niche markets that are, to a smaller
extent, expected to be affected by the reductions seen in
defence budgets in many countries. This is reflected in the
increased level of new orders in 2011. Among the contracts
that were signed are:
• Upgrading of the NASAMS anti-aircraft systems in
Norway
• Contract extension for the delivery of additional Naval
Strike Missiles to Poland
• Development contract with the Norwegian Armed
Forces for Step II of the Joint Strike Missile
• Several upgrade contracts for sub-marine systems
• Simulator-contract with Australia
• Contracts for additional deliveries to the F-35 program
• Deliveries of satellite ground station services to the U.S.
company
• Contract for development of BarentsWatch
“The Group shall in 2012 ensure
further strengthened competitiveness
and capital efficiency
while laying the basis for further growth.”