Annual Report 2011 - Kongsberg Maritime - Kongsberg Gruppen

2 INTRODUCTION
7 DIRECTORS’ REPORT AND
18 FINANCIAL STATEMENTS
64 CORPORATE GOVERNANCE
76 FINANCIAL CALENDAR AND ADDRESSES
12
KONGSBERG Annual Report 2011
After many years of strong growth Kongsberg Protech
Systems is in 2011 in a phase with lower volume in
anticipation of large future programs in several countries
and the launch of new products. U.S. Army is in the process
of selecting a supplier to the next phase of the CROWS
program. Kongsberg Protech Systems has invested
significantly in new products and new markets during 2011.
New orders in 2011 were MNOK 2,900, down 39 per cent
compared to 2010. Operating revenues totaled MNOK
4,185 (MNOK 5,683) and EBITA margin of 18.0 per cent
(17.5 per cent). Cost reductions, both internally and related
to subcontractors, productivity improvements and a favorable
product and project mix have resulted in strong margins
in 2011, especially for the first six month. Kongsberg
Protech Systems enters 2012 with a backlog of MNOK
4,136, which is MNOK 1,286 less than at the beginning of
2011. Most of the backlog will be delivered in 2012 which
means that the business area has relatively good order
coverage for 2012.
The largest project within the business area is the U.S.
CROWS program. KONGSBERG has so far received orders
for nearly 12,000 remote weapon systems for this program.
The revenues from CROWS accounted for almost 75 per
cent of the 2011 revenues within the business area. U.S.
Army has announced the next phase of the CROWS
program. I has been decided that the competition shall be
based on the design of KONGSBERG. This confirms that
remote weapon systems within the business area are world
leading. KONGSBERG has started work on the tender and
it is expected that tender will be decided on in the second
half of 2012.
2011 was an important year in order to found the basis
for future growth of Kongsberg Protech Systems remotecontrolled
weapons systems. New factories and sales
offices in the U.S. and Canada, as well as sales offices in
Australia have been opened. These countries are important
markets that are already customers, but which also offers
significant opportunities ahead. Substantial resources have
been spent on product development. The most important
development has been the Medium Caliber Remote
Weapon Station (MCRWS). This is an innovative, new
DISTRIBUTION
OF EBITA
12.3%
Kongsberg Defence
Systems
35.4%
Kongsberg Protech
Systems
50.6%
Kongsberg Maritime
1.7%
Others
OPERATING REVENUES
MNOK
tower solution. The first contracts may be signed as early
as 2012. The market potential for MCRWS and other new
solutions are considered to be significant, both within the
17 current customer countries and within new markets.
Other Activities
Kongsberg Oil & Gas Technologies (KOGT) is a strategic
priority for KONGSBERG. The area is under development
and delivers high-tech niche products for the oil and gas
market. The area has since the restructuring of the
operations in 2010 shown good efficiency improvements
and demonstrated positive margins in 2011. Both revenue
and new orders increased significantly in 2011 compared
with 2010. In June 2011, the first commercial version of the
simulation tool Leda Flow was launched in the market. Leda
Flow is a simulation tool for transportation of oil, gas and
water in the same pipeline, also known as multi-phase
transport. The tool provides a basis for more accurate
decisions both in the physical development phase and the
production phase of a field, which in turn contribute to a
better environment, increased security and lower costs. In
October 2011 KOGT signed an agreement to supply
installation system for flexible pipelines - Capstan Reel
Installation System (CRIS). CRIS is an advanced, innovative
new system of piping, where the purpose is to reduce the
risk, complexity and cost of such operations. KOGT shall
develop, build and deliver the system as a complete
solution for installation on an offshore vessel. The future
potential of CRIS system might be significant.
KOGT delivers subsea products and systems through its
EPC (Engineering, Procurement and Construction) projects.
The company also has a range of information technology
solutions for drilling operations, production, reservoir
and underwater environment. Several of the area’s
products are under development or in their early life cycle.
There is a growing global demand for energy, with the
greatest expected demand in India, China and countries in
South East Asia. In 2011 Kongsberg Oil & Gas Technologies
improved its position in the oil and gas market and is by the
solutions for safer and more efficient operations well
positioned to take further stakes in this market.
GEOGRAPHICAL DISTRIBUTION
OF REVENUES
1% Others
25%
Rest of Europe
20% Asia
18% Norway
36% America
OPERATING REVENUES
MNOK