Kitron Asa · OSL:KIT
Kitron Asa — Q4 2021 Earnings Presentation
18 slides from Kitron Asa's earnings presentation, Feb 11, 2022
Slide 1: Full year and Q4 results 2021
Full year and Q4 results 2021 Kitron Group | 2022-02-11
Slide 2: Demand continues to be strong, constraints in component supply chain continue to affect output
Demand continues to be strong, constraints in component supply chain continue to affect output NOK Million Q4 2021 vs Q4 2020 NOK Million 2021 vs 2020 Revenue 948.6 -4.3 % Revenue 3 711.4 -6.4 % EBIT 52.3 -31.0 % EBIT 240.8 -23.0 % Order Backlog 2 827.1 41.0 % Order Backlog 2 827.1 41.0
Slide 3: Strategic outlook
Strategic outlook ▪ For the longer term, the growth outlook remains favorable and with identified program acquisitions to support our strategic trajectory. ▪ In the near term, demand continues to be very strong for 2022 and 2023. ▪ Significant growth opportunities driven by market sectors Electrific
Slide 4: BB Acquisition
BB Acquisition Kitron group revenues (MNOK) and EBIT margin1 Strategic rationale for the acquisition 6 000 5 070 50% 5 000 40% 1 Regional expansion 2 Long-term synergies 4 000 1 370 30% ▪ New sites in Denmark, Czech ▪ Material cost and production 3 000 20% Republic, Suzhou – China and, automation 2
Slide 5: Financials
Financials
Slide 6: Mixed sector development
Mixed sector development Connectivity Electrification Industry Medical Devices Defence/Aerospace 350 350 350 350 350 312 297 300 300 300 300 300 273 254 250 250 250 250 250 233 217 219 214 221 196 200 200 200 200 190 186 200 200 188 173 167 160 159 155 147 150 138 150 150 150 150 127 108 100 84 87 1
Slide 7: Currency development and selling currencies
Currency development and selling currencies NOK EUR ▪ Currency development has a NOK/SEK 12.00 1.10 -6% negative affect on growth in -8% 11.50 11.00 1.05 Q4 compared to LY 1.00 10.50 10.00 0.95 ▪ Re-calculating the selling 0.90 9.50 0.85 currencies shows a total ~-6% 9.00 8.50 0.80 currency effect.
Slide 8: EBIT
EBIT 88.0 90.5 ▪ One offs related to acquisition BB 75.7 65.4 73.1 Electronics MNOK 5.7, adjusted margin 54.2 58.4 50.1 52.3 6.1%. NOK Million ▪ EBIT affected by material delays and in- -3.5 % efficiencies as well as close down in Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-20
Slide 9: Continued capital build up due to material supply delays
Continued capital build up due to material supply delays ▪ Working capital ratios o NOWC* 31.7% (LY 26.3%, LQ 31.8%) Net working capital o Cash conversion cycle* 126 (LY 98, LQ 124) o ROOC* 12.3% (LY 18.9%, LQ 12.8%) 1 228 1 157 ▪ Material supply delays actions o Firm orders NOK Million 1 064 1 035
Slide 10: Operating cash flow
Operating cash flow ▪ Cash flow Operating cash flow o Q4 Cash flow from operations MNOK 9 (132) o YTD Cash flow from operations MNOK 126 (237) 132 109 ▪ Financial gearing 78 o NIBD/EBITDA 1.7 (1.8) -93 .2% • Adjusted for share issue 2.7 9 NOK Million Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 ▪ BB Acqu
Slide 11: Updated dividend policy and dividend proposal
Updated dividend policy and dividend proposal ▪ The Kitron board has, as a consequence of the investment in BB Electronics and the future capital needs of the company, decided to change the Kitron dividend policy into: “Kitron’s dividend policy is to pay out an annual dividend of 20% to 60% of the c
Slide 12: Market development
Market development
Slide 13: Order backlog
Order backlog ▪ Growth of 41% compared to last year. Q4 2021 vs Q4 2020 Share of total revenue Connectivity 303.5 128.9 % 10.7 % Order Backlog Electrification 2 827 80.7 % 36.2 % 1 024.4 2 568 2 293 Industry 2 006 2 060 473.8 56.9 % 16.8 % NOK million Medical Devices 264.1 12.6 % 9.3 % Defen
Slide 14: Outlook
Outlook
Slide 15: Outlook
Outlook ▪ For 2022, Kitron expects revenue between NOK 5 200 and 5 800 million, including BB Electronics. The operating profit (EBIT) is expected to be between NOK 330 and 430 million. ▪ Growth is driven by the Electrification, Connectivity and Industry market sectors. ▪ Currently, the growth is con
Slide 16: Key take-ways
Key take-ways ▪ Growth in 2022 is supercharged, propelled by acquisition of BB Electronics. ▪ Order backlog and 2022 demand outlook 2022 and 2023 supports strong continued growth. ▪ In addition, we see well identified key program acquisitions to sufficiently to follow our strategic trajectory. ▪ Kit
Slide 17: Q&A
Q&A
Slide 18: Appendix: Definition of alternative performance measures
Appendix: Definition of alternative performance measures Order backlog Return on capital employed (ROCE) Cash conversion cycle (CCC) All firm orders and 4 months of committed customers forecast at EBIT/(Total assets - short term debt) Days of inventory outstanding + Days of receivables outstanding –