Kitron Asa · OSL:KIT
Kitron Asa — Q1 2005 Earnings Presentation
19 slides from Kitron Asa's earnings presentation, Apr 29, 2005
Slide 1: Quarterly presentation Q1 2005 Kitron ASA
Quarterly presentation Q1 2005 Kitron ASA 29 April 2005
Slide 2: Progressing as planned
Progressing as planned www.kitron.com n Continuing to strengthen gross margin n Turnover as expected – lower than last year n Measures taken in 2004 are yielding planned results l On target to reach goal of NOK 70 mill in cost cuts for 2005 as a whole n Share issue was oversubscribed l Has secured s
Slide 3: Highlights Q1
Highlights Q1 www.kitron.com n Operating income NOK 379.9 mill (2004: NOK 452.8 mill) n Gross margin 41.6% (2004: 40.2%) n EBITDA NOK 6.4 mill (2004: NOK 9.5 mill) n Cash flow from operations negative at NOK 31.6 mill (2004: negative at NOK 65.9 mill) n Pre-tax loss NOK 7 mill (2004: NOK 6.1 mill) n
Slide 4: Changed reporting structure
Changed reporting structure www.kitron.com Kitron has two business areas: n Electronic manufacturing services (EMS) l Kitron AS (Norge) l Kitron AB (Sverige) l Kitron UAB (Lithuania) l Kitron development wholly incorporated in EMS n Microelectronics l Operations in Norway and Sweden - one step ahead
Slide 5: Gross margin strengthened
Gross margin strengthened www.kitron.com n Commitment to sourcing l Improved terms – fewer suppliers l Increased share of purchases from low-cost manufacturers l Prices for electronic components expected to decline slightly n Unaffected by higher prices for metals and oil-related products l Incorpor
Slide 6: Financial information Q1 2005
Financial information Q1 2005
Slide 7: As expected…
As expected… www.kitron.com n Cost savings according to Kitron’s plans l Payroll expenses reduced by NOK 11.3 mill l Other operating expenses down by NOK 9.8 mill n Net financial expenses NOK 5.7 mill (2004: NOK 6.8 mill) l Lower interest-bearing debt l Lower interest rates on loans l NOK 0.6 millio
Slide 8: Highlights – balance sheet
Highlights – balance sheet www.kitron.com n Total balance sheet of NOK 604.7 mill (2004: NOK 729.6 mill) n Equity NOK 123.2 mill l Equity of 20.4% l Share issue of NOK 50 mill implemented in April n Capital tied up in stocks cut to NOK 254.7 mill (2004: NOK 304.7 mill) n Accounts receivable of NOK 1
Slide 9: Market developments
Market developments
Slide 10: Positive market trend
Positive market trend www.kitron.com n 7.5% growth in the Nordic EMS market up to 2007 (IDP and IDC market analysis companies) n 9% growth in Sweden – the dominant market (Isupply and IDC market analysis companies) n Kitron expects to take its share of growth in the Norwegian EMS market n Stable gro
Slide 11: Quality first
Quality first www.kitron.com n Most important parameters for the customer Quality Geography Expertise Price n Most important Nordic competitors l Flextronic, Partnertech, Note, Hapro and Norautron - one step ahead
Slide 12: Defence/marine
Defence/marine www.kitron.com n Lower activity compared with Q1 2004 n Expecting 2005 turnover as a whole to be on a par with last year n Offset contracts provide a basis for stability and long-term approach - one step ahead
Slide 13: Data/telecom
Data/telecom www.kitron.com n Market segment is in a new growth phase n Increased order intake from new customers n Two jobs have been cut back, and one customer has begun own production n Q-Free production to Stockholm. Project starts in May and will be completed in August (NOK 24 mill) n Increasin
Slide 14: Medical equipment
Medical equipment www.kitron.com n Market in growth n Kitron retaining its share n More complex products n Kitron is technologically well positioned in this market segment n Pursuing several interna- tional opportunities - one step ahead
Slide 15: Industry
Industry www.kitron.com n Stable market n Stability and continuity characterise customer relations n Improved competitive- ness through low-cost manufacturing in Lithuania n Growing number of opportunities - one step ahead
Slide 16: Order backlog
Order backlog www.kitron.com - one step ahead
Slide 17: Prospects
Prospects
Slide 18: Moving forward
Moving forward www.kitron.com Norway and Sweden are the main markets Strong progress in Sweden Profitability 2005 Continued growth in Lithuania Continued successful sourcing - one step ahead
Slide 19: Kitron - one step ahead
Kitron - one step ahead