Kitron Asa · OSL:KIT

Kitron Asa — Q1 2015 Earnings Presentation

16 slides from Kitron Asa's earnings presentation, Apr 22, 2015

  1. Slide 1: Q1 results 2015

    Q1 results 2015 Peter Nilsson, CEO Cathrin Nylander, CFO April 22, 2015

  2. Slide 2: Revenue growth with improved profitability

    Financial highlights for Q1: Revenue growth with improved profitability § Revenue growth fueled by NOK mill. Q1 2015 vs Q1 2014 increased demand in defence § Improved profitability Revenue 470,6 Ý 8,0 % § Strong order intake, especially in Defence/Aerospace EBIT 20,8 Ý 954,2 % § PosiJve cash flow

  3. Slide 3: Important orders in the first quarter

    Major new orders: Important orders in the first quarter § Lockheed MarFn Awards Contract to Kitron AS § Kitron Norway received a contract from Lockheed MarJn Mission Systems and Training for producJon of Integrated Backplane Assembly, for deliveries to the F-­‐35 low rate iniJal producJon program,

  4. Slide 4: Actions yield results

    Major new orders: AcFons yield results § ShiO from high cost to low cost regions § 53% (46%) FTE in low cost § Payroll expenses/revenue 24% (29%) § Revenue per employee at KNOK 399 (KNOK 369) § All units profitable § Arendal downsizing during 2014 § US and China operaJons at sustainable volume

  5. Slide 5: Financial statements Q1 2015

    Financial statements Q1 2015 5

  6. Slide 6: Strong Defence/Aerospace and Industry growth

    Revenue: Strong Defence/Aerospace and Industry growth Q1 2015 vs Q1 2014 Share of total revenue Offshore/Marine -­‐44,6 % Þ 9,7 % Medical equipment -­‐7,6 % Þ 21,1 % Defence/Aerospace 49,0 % Ý 27,7 % Energy/Telecoms 9,4 % Ý 11,6 % Industry 29,7 % Ý 29,9 % 6

  7. Slide 7: Continued strong growth outside Scandinavia

    Revenue by country*: ConFnued strong growth outside Scandinavia Q1 2015 vs Q1 2014 Share of total revenue Norway 2,1 % Ü 43,8 % Sweden -8,1 % Þ 18,7 % Lithuania 18,5 % Ý 21,3 % Others 111,0 % Ý 16,3 % * Before group enJJes and eliminaJons 7

  8. Slide 8: Fourth consecutive quarter of improved profitability

    EBIT: Fourth consecuFve quarter of improved profitability § Improvement in both nominal value 20,8 as well as EBIT margin § All sites profitable 14,3 § Personnel expense reducJon § Non-­‐recurring gains of NOK 3.5 6,9 million booked in the quarter, 6,9 compared to non-­‐recurring costs of NOK mill

  9. Slide 9: All sites profitable

    EBIT by country: All sites profitable EBIT* § Norway 12,0 § Cost reducJon acJons yield results NOK million § Sweden § Improved margins 5,7 6,0 5,1 § Lithuania 3,0 3,4 § Slight reducJon due to higher indirect cost § Other -0,6 § China and US conJnue to contribute -1,6 posiJvely Q1 2014 Q1 2015

  10. Slide 10: Cash flow improvement

    Balance sheet: Cash flow improvement Operating cash flow § Cash flow § Improved profitability affects cash NOK million flow posiJvely 35,0 301.0 % 9,5 12,9 -9,7 -17,4 § Working capital increase Net working capital § Cash conversion cycle 106 and at same level as fourth quarter NOK million 565 563 15.

  11. Slide 11: Market development

    Market development www.kitron.com

  12. Slide 12: Continued strong Defence/Aerospace order backlog

    Order backlog: ConFnued strong Defence/Aerospace order backlog Order backlog § Defence/Aerospace NOK million § Increased by 87% (MNOK 190.8) from last year 859 868 855 807 § Offshore/Marine 707 § ReducJon of 38.2% (MNOK 38.8) 20.8 % Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 DefiniJon of order backlo

  13. Slide 13: Market development

    Market development § Offshore/Marine § General adjustment in the oil service market in Norway § Medical equipment § Stable development § Defence/Aerospace § Strong growth and posiJve outlook § Energy/Telecoms § Stable backlog and posiJve outlook § Industry § ConJnues to grow, increased reve

  14. Slide 14: Outlook

    Outlook www.kitron.com

  15. Slide 15: Outlook

    Outlook § For 2015, Kitron expects growth and a clear improvement in profitability. § Growth is primarily driven by increased demand in Defence sector for US and Norwegian markets, as well as increases in Energy/Telecoms and Industry. § Offshore/Marine will have reducJon due to oil service market i

  16. Slide 16: Thank you!

    4 Kitron Your ambition. Our passion. Thank you!

Kitron — Q1 2015 Earnings Presentation on 6ix