Kitron Asa · OSL:KIT
Kitron Asa — Q4 2008 Earnings Presentation
19 slides from Kitron Asa's earnings presentation, Feb 9, 2009
Slide 1: Q4 results 2008
Q4 results 2008 9 February 2009 Jørgen Bredesen, CEO Björn Wigström, CFO
Slide 2: Record performance
Record performance Financial highlights in Q4 • Order intake and backlog remain at a high level • Revenue growth of 23% • Doubled operating profit • Pre tax profit margin of 7.4% • Positive operating cash flow 2
Slide 3: Streamlining operation
Streamlining operation Operational highlights in Q4 • Positive impact of ongoing manufacturing efficiency programme • Consolidation to one manufacturing site in Lithuania completed • Transfer of manufacturing to Lithuania ongoing • Capacity adjustment at Karlskoga site announced • Gradual downsizing
Slide 4: Securing new business
Securing new business New orders in Q4 • Defence/Marine orders of NOK 90 million - October • UAB Kitron received new orders for delivery in first half 2009 • Medical orders of NOK 85 million per annum • Kitron AB secured order from Maquet Critical Care AB 4
Slide 5: Financial statements Q4 2008
Financial statements Q4 2008
Slide 6: Strong growth in revenue
Revenue Group Strong growth in revenue 700 677.4 613.3 600 551.3 495.1 483.7 500 • Revenue reached NOK 677.4 million NOK million 400 which represents a 22.9% increase 300 200 compared to Q4 2007 100 • Particulary solid growth within 0 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Defence/Marine Revenue by
Slide 7: All countries show a positive trend
All countries show a positive trend 500 Revenue by country* 427.7 385.5 • Growth across all countries 400 NOK million 300 Growth by country 200 158.7 129.5 111.7 Q4 2008 vs Q4 2007 97.2 100 Norway 13% 0 Norway Sweden Lithuania Sweden 49% Q4 2007 Q4 2008 Lithuania 38% Revenue by country • Transfer of
Slide 8: Operating profit (EBIT) more than doubled
Operating profit (EBIT) more than doubled • Operating profit up by 124% Operating profit Group 60 48.8 51.0 50 • Operating margin improved from NOK million 37.1 40 4.1% to 7.5% 30 22.7 21.6 20 • Operational efficiency 10 0 improvements (5S, LEAN etc) Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 • Global
Slide 9: All units deliver positive results
All units deliver positive results Operating profit by country* • Norway (Arendal) continues 40 36.3 to deliver a solid profit 30 24.6 NOK million 20 Q4 2007 11.1 12.2 • Sweden continue a 10 Q4 2008 - convincing trend and confirm 0 (2.5) the turnaround -10 Norway Sweden Lithuania Operating margin by
Slide 10: Operating cash flow improved
Operating cash flow improved Operating cash flow Group 123.1 • Third quarter in a row with a 120 strong operating cash flow 80 66.0 51.6 NOK million • Operating cash flow was NOK 40 27.8 66 million vs NOK 123 million in 0 Q4 2007 -40 • Net Working capital improved to -80 Q4 2007 -60.9 Q1 2008 Q2 200
Slide 11: Equity increased by more than NOK 230 million
Equity increased by more than NOK 230 million Equity • Equity improved to NOK 480.4 500 480.4 million (247.0) and the equity 400.4 400 ratio to 38% (25%) 303.1 NOK million 300 247 262.5 200 • Sharp increase in retained 100 earnings as a result of strong performance 0 Q4 2007 Q1 2008 Q2 2008 Q3 2008
Slide 12: Market development
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Slide 13: Continued strong demand in Q4
Continued strong demand in Q4 • Strong development for Defence / Marine, Medical equipment and Data/Telecom in Q4 • The Industry segment show weak trend despite a year on year growth • Towards the end of 2008 there were signs of weakening demand in all segments except Defence Revenue by market segme
Slide 14: Order intake down, but remains at a high level
Order intake down, but remains at a high level Order intake Group 650 600 550 NOK million 500 450 400 350 300 05 06 06 06 06 07 07 07 07 08 08 08 08 20 20 20 20 20 20 20 20 20 20 20 20 20 4 1 2 3 4 1 2 3 4 1 2 3 4 Q Q Q Q Q Q Q Q Q Q Q Q Q Total Serie1 Q4 average Serie2 14
Slide 15: Order backlog signals high revenue visibility over the next six months
Order backlog signals high revenue visibility over the next six months Order backlog Group • Order backlog at NOK 971 million 1 200 1 101 994 1 006 (NOK 914 million) 971 NOK million 1 000 914 800 • Signals high revenue visibility in the 600 first half of 2009 400 200 • Represents five months of Q4 2
Slide 16: Outlook
4 Kitron Ss deliver succes: Our solution: Outlook » Htttreereny tit
Slide 17: Safeguarding competitive edge and profitability
Safeguarding competitive edge and profitability • Kitron to reduce work force by 250 FTE’s in 2009 • Productivity improvements • 10% drop in revenue outlook • Annual saving of NOK 100 million • Accelerate operational improvement activities • Transfer of production to Lithuania (lower costs) • Manufa
Slide 18: Healthy profitability expected in Q1
Healthy profitability expected in Q1 • Healthy profitability and margin level expected for Q1 2009 • Management is proactively responding to the impact of the financial crisis 18
Slide 19: El ecuiscte aenver success! Kitron
El ecuiscte aenver success! 4 Kitron