Kitron Asa · OSL:KIT
Kitron Asa — Q3 2012 Earnings Presentation
18 slides from Kitron Asa's earnings presentation, Oct 24, 2012
Slide 1: Q3 results 2012
Q3 results 2012 24 October 2012 Jørgen Bredesen, CEO Björn Wigström, CFO
Slide 2: Financial highlights for Q3: Sharp Rise in EBIT
Financial highlights for Q3: Sharp Rise in EBIT • Kitron China and Germany reaches break-even • Strong trend in Offshore & Defence • Taking action to reduce inventory 2
Slide 3: Operational highlights for Q3: Gaining results from global efforts
Operational highlights for Q3: Gaining results from global efforts • Kitron China and Germany reach break-even • China profitable, one year after start of operation • Sale to German market increasing • Setting up distribution centre to drive down inventory • Streamlining the logistics process • Redu
Slide 4: Major new orders: Strong momentum in Defence
Major new orders: Strong momentum in Defence • Two significant orders with KONGSBERG worth more than NOK 400 million 1) Weapon stations for US Army (CROWS) • Annual volume more than NOK 60 million • Preferred supplier to Kongsberg Protec Systems for at least 5 years 2) Military communication equipme
Slide 5: Financial statements Q3 2012
Financial statements Q3 2012
Slide 6: Revenue: Stable revenue development
Revenue: Stable revenue development • Seasonally lower revenue • Strong development in Medical and Offshore/Marine segments • Lower demand in Energy/Telecoms and Industry • New entities ramping up activity level 6
Slide 7: Revenue by market segment: Offshore strongest growing market
Revenue by market segment: Offshore strongest growing market 7
Slide 8: Revenue by country: New entities ramping up
Revenue by country*: New entities ramping up * Before group entities and eliminations 8
Slide 9: EBIT: Sharp rise in EBIT
EBIT: Sharp rise in EBIT • Profitability improving • Start up operations turning profitable • Successful restructuring of operation in Sweden • Strong trend in Offshore/Marine • Key profitability drivers: • Turnover and revenue mix • Positive effects from restructuring and global sourcing 9
Slide 10: EBIT by country: Norway and Sweden leading the way
EBIT by country: Norway and Sweden leading the way • New entities: Steady progress towards positive results • Norway: change in revenue mix and growth in higher margin segments • Sweden: strong top line development and positive effects of restructuring • Lithuania: Lower revenue causes drop in margi
Slide 11: Balance sheet: Taking action to reduce inventory
Balance sheet: Taking action to reduce inventory • Net working capital remains on a (too) high level • High receivable level in September • Targets NOK 100 mill inventory reduction • Satisfactory liquidity position • Working capital focus to increase cash flow • Significant improvement expected alre
Slide 12: Market development
Your ambition. Our passion. < Kitron Market development
Slide 13: Order backlog: Defence and Offshore drives backlog
Order backlog: Defence and Offshore drives backlog • Backlog up after healthy order flow • Strong positive trend in Offshore/Marine and Defence/Aerospace • Backlog in China and US building up • Weaker trend in Industry and Energy/Telecoms • Solid portfolio in Offshore/Marine and Defence/Aerospace •
Slide 14: Market development: Offshore/Marine and Medical equipment
Market development • Offshore/Marine • Positive trend in offshore market expected to continue • In dialogue with existing and new customers about significant new business opportunities • Medical equipment • Continued growth expected underpinned by healthy market fundamentals for Kitron’s product 14
Slide 15: Market development: Defence, Energy/Telecoms, Industry
Market development • Defence/Aerospace • Promising long term outlook • Several major programs secured and expected to ramp up • Weaker outlook with Swedish defence customers • Energy/Telecoms • Competitive market segment with strong price pressure • Lower demand in metering business • Industry • Ris
Slide 16: Outlook
Outlook
Slide 17: Outlook
Outlook • Kitron believes in improved profitability • Focus on manufacturing efficiency and global sourcing remains a priority area • Restructuring in Sweden expected to have a positive impact on profitability • Target to reach break even in USA • Target to reduce inventory by NOK 100 million • Esta
Slide 18: Thank you!
Thank you! 18