Kitron Asa · OSL:KIT
Kitron Asa — Q3 2011 Earnings Presentation
9 slides from Kitron Asa's earnings presentation, Oct 27, 2011
Slide 1: Q3 results 2011: Rebound in order intake
Q3 results 2011 27 October 2011 Jørgen Bredesen, CEO Björn Wigström, CFO Rebound in order intake Financial highlights for Q3 • Revenue stable compared to same quarter last year. Continued recovery in Offshore / Marine as well as in the Industry segment. • Operating profit (EBIT) NOK 9.2 million, Low
Slide 2: Operational highlights; Major new orders in Q3
Operational highlights • Merger of Swedish operations completed • Operational merger completed in September. • Production optimization and transfer of production to low cost countries ongoing • Swedish operation profitable 3rd quarter • Global expansion ongoing • Factory in Ningbo in China opened as
Slide 3: Financial statements Q3 2011: Stable revenue
Financial statements Q3 2011 Stable revenue Revenue Group 455 430 431 • Revenue at NOK 352.7 million, in line with Q3 2010. 353 352 • Q3 change by market segment: NOK million Q3 2011 vs Q3 2010 Energy/Telecoms -29.1% Defence/Aerospace -12.7% Industry 44.7% Medical equipment -20.0% Q3 2010 Q4 2010 Q1
Slide 4: Revenue by country; Positive profitability trend
Revenue by country * Revenue by country Mixed trend: • Norway 20.6% lower – Lower demand from defence customers in 2011. Partly compensated by recovery in Offshore • Swedish up by 47.3% - strong increase in Swedish Industrial segment Revenue by country • Lithuania 39.8% higher – Growth driven by Tot
Slide 5: Profit by country; Improved operating cash flow
Operating profit by country * Profit by country • Performance mixed • Operating profit down in Norway due to lower revenue • Turnaround in Sweden yield effect Operating margin by country • Delivery performance and high activity in Lithuanian contribute to strong margin • Start up cost in US and CN h
Slide 6: Comfortable level of equity
Comfortable level of equity Equity • Equity of NOK 431.8 million 444.7 420.6 424.5 427.3 431.8 (444.7 million) and equity ratio of 42.6% (44.1%) NOK million • Financially among the strongest in the EMS industry Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Equity ratio 44.1% 41.4% 40.6% 42.1% 42.6% 11 Mar
Slide 7: Market development
Market development • Energy/Telecom • Overall very competitive but Kitron has a good portfolio of customers with strong growth • Defence/Aerospace • Lower demand in the short to medium term • Long term outlook remains promising with several major programs secured and ramping up. • Industry • Positiv
Slide 8: Order backlog trend
Order backlog Group Order backlog trend 848.2 836.1 817.1 781.4 820.8 • Order backlog at NOK 820.8 million, an NOK million increase of nearly NOK 40 million compared Q2 2011. • Solid backlog in Defence/Aerospace segment despite lower short term demand. Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 • Optim
Slide 9: Outlook; Thank you!
Outlook • No significant signs so far of lower demand due to global economic development. • However, concerns about the economic outlook which may affect demand for Kitron’s services • The global expansion into China, US and Germany will provide new opportunities in the long term, short term (2011)