Kitron Asa · OSL:KIT
Kitron Asa — Q2 2011 Earnings Presentation
18 slides from Kitron Asa's earnings presentation, Jul 21, 2011
Slide 1: Q2 results 2011
Q2 results 2011 21 July 2011 Jørgen Bredesen, CEO Björn Wigström, CFO
Slide 2: Positive profitability trend
Positive profitability trend Financial highlights for Q2 • Increase in activity level, revenue up by 1.2% vs Q2 2010. Strong recovery in Offshore / Marine • Operating profit (EBIT) improved to NOK 13.8 million, mainly due to improved results in the Swedish operation • Order backlog down by 10% from
Slide 3: Operational highlights
Operational highlights • Global expansion progressing as planned • USA factory officially opened in Q2 2011 • Factory in China will open as planned in Q3 2011 • Strategy for Germany starting to show results. Several smaller contracts with growth potential secured • Supporting start up activities a m
Slide 4: Strategic co-operation between Prevas and Kitron concluded
Strategic co-operation between Prevas and Kitron concluded • Prevas is a leading Scandinavian product development company • The two companies are complementary in scope, but similar in market philosophy • Kitron and Prevas offer market leading support throughout the customer’s entire value chain • A
Slide 5: Major new orders in Q2
Major new orders in Q2 • Kongsberg Defence Corporation – Crows II contract (value app NOK 17 million) • Work will be performed in Kitron's new manufacturing facility in Johnstown, Pennsylvania • Lockheed Martin – F35 integrated backplane (value app NOK 22.5 million) • Delivery starts second half of
Slide 6: Financial statements Q2 2011
Financial statements Q2 2011
Slide 7: Positive revenue development
Positive revenue development Revenue Group • Revenue at NOK 431 million, a growth of 1.2% vs Q2 2010 • Q2 change by market segment: Q2 2011 vs Q2 2010 Energy/Telecoms -44.1% Defence/Aerospace -5.0% Industry 39.3% Medical equipment -2.9% Revenue by market segment Offshore/Marine 165.5% Total revenue
Slide 8: Revenue by country
Revenue by country * Revenue by country Mixed trend: NOK million • Norway 5.4% lower – Lower sales in Energy/Telecoms partly compensated by strong development in Offshore/Marine and Industry • Swedish operation show flat revenue development – Strong demand in Industry Revenue by country offset by lo
Slide 9: Profitability continue to recover
Profitability continue to recover Operating profit Group • Operating profit NOK 13.8 million 13.8 (NOK 9.3 million) and the operating 11.2 11.1 margin was 3.2% 4.5 NOK million • Operating margin improvement mainly Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 driven by restructuring in Sweden • Important
Slide 10: Profit by country
Operating profit by country * Profit by country 7.1 7.9 5.9 • Performance improving 5.3 4.6 NOK million Q2 2010 Q2 2011 • Profitability in Norway somewhat down due to lower sales. (4.5) • Turnaround of Sweden from loss Norway Sweden Lithuania to profit following restructuring. Operating margin by co
Slide 11: Working capital lower
Operating cash flow Group Working capital lower 39.1 32.4 • Cash flow was positive by NOK NOK million 32.4 million (negative NOK 13.7 million) following a reduction in (13.7) working capital (39.8) (38.3) Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 • Inventory levels lower as Net working capital Group c
Slide 12: Comfortable level of equity
Comfortable level of equity Equity • Equity of NOK 427.3 million 438.8 444.7 (438.8 million) and equity ratio 420.6 424.5 427.3 of 42.1% (44.1%) NOK million • Still among the strongest in the EMS industry Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Equity ratio 44.1% 44.1% 41.4% 40.6% 42.1% 12
Slide 13: Market development
Your ambition. Our passion. 4 Kitron Market development
Slide 14: Market development
Market development • Energy/Telecoms – at lower level but with a strong trend in several accounts. • Defence/Aerospace – longer term outlook remains promising but lower demand in the short term (2011) • Industry – positive trend expected to continue • Medical equipment – mixed trend by account but o
Slide 15: Order backlog trend
Order backlog Group Order backlog trend • Order backlog at NOK 781.4 million, which is 10% lower than Q2 2010 • Reduction in order lead time due to normalization of the component market • Short term lower demand from Norwegian defence customers • Several long term agreements signed Order backlog Seg
Slide 16: Outlook
Your ami bition. Our passion. 4 Kitron
Slide 17: Outlook
Outlook • Stable development in revenue expected in 2011, compared to 2010 • Development in the world economy may affect demand for Kitron’s services • Component market normalizing • Establishment of new units (USA, China and Germany) on going. • Continued focus on operational improvements (supply c
Slide 18: Thank you!
bank Bla Your ambition. Our passion. 4 Kitron