Kitron Asa · OSL:KIT
Kitron Asa — Q1 2021 Earnings Presentation
17 slides from Kitron Asa's earnings presentation, Apr 21, 2021
Slide 1: Q1 results 2021
Q1 results 2021 Peter Nilsson, CEO Cathrin Nylander, CFO Kitron Group | 2021-04-21
Slide 2: Electrification and Industry drives growth
Electrification and Industry drives growth NOK Million Q1 2021 vs Q1 2020 ▪ Revenue growth 7%, underlying 9%* Revenue 937.5 6.8 % ▪ EBIT margin 7.0% (6.7%) EBIT ▪ Order backlog 0%, underlying 8%* 11.9 % 65.4 ▪ Net working capital 2.2% Order Backlog 2 060.4 0.0 % ▪ EPS NOK 0.25 (NOK 0.23) Opera
Slide 3: Status Kitron Operations
Status Kitron Operations MANUFACTURING All sites up and running SUPPLY CHAIN Vs) Supply shortages related to demand increase Na) “s SS TECHNICAL SERVICES Design, test development and electronics engineering services available Q & Kitron LS aie LOGISTICS Delays and price increase ON TIME SUPPLY Keepi
Slide 4: Kitron Market Sectors
Kitron Market Sectors High Volume, Automation, Utilization Low Low Cost of failure High six to eighteen months Life cycle three to thirty years high Demand and product affect by general business cycle low Connectivity Electrification Industry Medical Devices Defense/Aerospace M2M IOT, Sensors, Batte
Slide 5: Important orders in Q1
Important orders in Q1 ▪ F-35 IF Receiver order from Northrop Grumman ( January) ▪ Corvus Energy enters Contract Manufacturing Agreement with Kitron ( March) o This aircraft radar system order is the first award under the long-term supply agreement announced 2016 with o Corvus Energy is the leading
Slide 6: Financial results
Financial results
Slide 7: Electrification and Industry drives growth
Electrification and Industry drives growth Q1 2021 vs Q1 2020 Share of total revenue Q1 2021 vs Q1 2020 Share of total revenue Connectivity Norway 22.7 % 9.2 % 7.5 % 27.7 % 86.6 259.3 Electrification Sweden 25.5 % 31.7 % 10.0 % 17.5 % 296.8 164.5 Industry 24.7 % 23.4 % CEE 218.9 11.8 % 3
Slide 8: EBIT development
EBIT development ▪ EBIT development in line with strategic trajectory and outlook ▪ Economies of scale and exceptional utilization of overhead Q2/Q3 2020 88.0 90.5 75.7 65.4 56.4 58.4 NOK Million 51.2 54.2 39.6 27.5% Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Margin 6.3
Slide 9: Q1 EBIT by country: CEE with strong development
Q1 EBIT by country: CEE with strong development ▪ Norway and Sweden at solid margin levels and with improved profits EBIT ▪ CEE (Lithuania and Poland) ended at 36.4 strong profits and profitability levels o Driven by growth in Poland but with 21.7 good development in Lithuania too. 17.5 18.2 13.8 ▪
Slide 10: Balance sheet: Capital stabilized
Balance sheet: Capital stabilized ▪ Working capital ratios Net working capital o NOWC* 27.9% (27.5%) 1 133 o Cash conversion cycle* 103 (105) 1 064 o ROOC* 16.6% (15.3%) 1 058 NOK Million 1 035 1 013 2.2 % ▪ Cash flow Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 o Q4 Cash flow from operations MNOK 78 (10
Slide 11: Market development
Market development
Slide 12: Strong order backlog
Strong order backlog ▪ Underlying growth 8% Q1 2021 vs Q1 2020 Share of total revenue Connectivity Order Backlog Order Backlog 35.5 % 8.1 % 167.5 2 102 Electrification 2 064 2 060 2 102 15.2 % 25.9 % 533.2 2 006 2 064 2 060 2 006 NOK million Industry 25.4 %1 863 17.3 % 355.8 NOK million (0,2)%
Slide 13: Outlook
Outlook
Slide 14: Outlook
Outlook ▪ For 2021, Kitron expects revenue between NOK 3 900 and 4 200 million. EBIT margin is expected to be between 6.8 and 7.4 per cent. ▪ The outlook for 2021 implies that Kitron is back on its long-term trajectory for revenue and profitability after exceptional growth in 2020, largely driven by
Slide 15: Key takeaways Summary Q1 2021
Key takeaways Summary Q1 2021 ▪ Strongest first quarter yet despite unfavorable currencies and challenges in the supply chain. ▪ Order backlog and full-year demand outlook supports continued growth. ▪ 2021 Outlook reconfirmed and maintained. 15
Slide 16: Q&A
Q&A
Slide 17: 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 –