Kitron Asa · OSL:KIT
Kitron Asa — Q2 2009 Earnings Presentation
10 slides from Kitron Asa's earnings presentation, Aug 12, 2009
Slide 1: Q2 and H1 results 2009: Weaker demand - revenue and profit decline
Q2 and H1 results 2009 12 August 2009 Jørgen Bredesen, CEO Björn Wigström, CFO Weaker demand - revenue and profit decline Financial highlights in H1 Financial highlights in Q2 • Excellent cash flow • Positive cash flow trend performance maintained • Revenue decreased 4.5% • Revenue down 25.4% • Oper
Slide 2: Adjusting capacity to lower demand
Adjusting capacity to lower demand Operational highlights • Lower demand and activity level in Q2 • Market showing signs of stabilizing • Capacity adjustments ongoing. Downsizing with about 270 FTEs in Q2 and 325 FTEs year to date • Horten site closed • Continued focus on operational improvements 3
Slide 3: Sale of Kitron Microelectronics AS
Sale of Kitron Microelectronics AS Transaction highlights • KM AS sold to local employees and Norbit AS • About 50 employees and NOK 128 million in turnover in 2008 (NOK 30 million in first six months in 2009) • Decision taken to divest as business is not considered core to Kitron • Securing continu
Slide 4: Revenue drop in Q2
Revenue Group Revenue drop in Q2 660 572 556 • Revenue in H1 decreased by 4.5% 454 NOK million 427 • Revenue in Q2 dropped to NOK 427 million which represents a 25.4% reduction Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 • Strongest decline within the Industry and Offshore segments Revenue by market seg
Slide 5: Reduced profitability
Reduced profitability Operating profit Group • Operating profit in H1 was NOK 34.4 46.7 51.9 million (NOK 68 million) • Operating profit in Q2 was NOK 2.9 34.6 NOK million 31.5 million (NOK 46.7 million) and operating margin declined to 0.7% (8.2%) • Main factors behind lower profit: 2.9 • Revenue d
Slide 6: Strong cash flow performance
Strong cash flow Operating cash flow Group performance 66.5 51.6 • Cash flow in H1 was NOK 20.5 35.0 NOK million 27.8 million (NOK –9.2 million) • Cash flow in Q2 was NOK –14.4 million (NOK 51.6 million) • Significant reduction of factoring Q2 2008 Q3 2008 Q4 2008 Q1 2009 -14.4 Q2 2009 debt included
Slide 7: Increasing equity ratio
Increasing equity ratio • Equity of NOK 453.6 million (303.1) and the equity ratio to 46.9% (28.2%) Equity • Mainly driven by the working 480.4 478.9 453.6 400.4 capital improvement and total NOK million balance reduction 303.1 • Currency translation and loss related to Røros have negative impact in
Slide 8: Decreased demand in Q2
Decreased demand in Q2 • Defence show positive development while Offshore is significantly down from the peak level. Looking at entering new market segments • Data/Telecom trend mixed but positive trend in video projection • Medical relatively stable • Industry segment starting to bottom out Revenue
Slide 9: Order backlog stabilizing on lower level
Order backlog stabilizing on lower level Order backlog Group 1100 • Order backlog at NOK 742 million 1006 971 732 (NOK 1007 million) 742 NOK million • Backlog stabilizing above NOK 700 million • Expected long-term positive Order backlog Segment development in the Medical Q2 2008 Q3 2008 Q4 2008 Q1 2
Slide 10: Outlook
Outlook • Volume stabilizing in H2 but is down 20% compared to 2008 • Capacity adjustments expected to give savings of NOK 70 million in 2009 (mainly in H2) • Annual total cost reductions expected to be NOK 130 million • Divestment of Kitron Microelectronics increases total reduction of work force.