Kitron Asa · OSL:KIT
Kitron Asa — Q4 2010 Earnings Presentation
19 slides from Kitron Asa's earnings presentation, Feb 9, 2011
Slide 1: Q4 results 2010
Q4 results 2010 9 February 2011 Jørgen Bredesen, CEO Björn Wigström, CFO
Slide 2: Improved performance before restructuring costs
Improved performance before restructuring costs Financial highlights • Order backlog increased by 5.1% vs Q4 2009 • Activity level increasing, revenue up by 7.4% vs Q4 2009 • Positive profitability trend before restructuring costs • Restructuring costs of NOK 27 million in the Swedish operations boo
Slide 3: Recovery slower due to component situation
Recovery slower due to component situation Operational highlights • Component situation leading to pressure on delivery precision and manufacturing efficiency in all operations • Predicted rebound in offshore segment confirmed through new orders. • Loss of major Data/Telecoms client announced in Q4
Slide 4: Restructuring of Kitron Sweden
Restructuring of Kitron Sweden Operational highlights • Significant losses incurred at Kitron Karlskoga in 2010 • Decission taken in Q4 to start restructuring Kitron Sweden with the aim to increase competitiveness and improve profitability: • Key points in the plan: Ø Downsize Karlskoga to a manufac
Slide 5: Major new orders in Q4
Major new orders in Q4 • Industry orders of about NOK 20 million annually • Manufacturing of complex mechatronics products containing motion mechanics and electronics • Deliveries have started • Data/Telecoms order of about NOK 20 million annually • Deliveries have started • Manufacturing of new app
Slide 6: Financial statements Q4 2010
Financial statements Q4 2010
Slide 7: Positive revenue development
Revenue Group Positive revenue development • Revenue at NOK 455 million, a growth of 7.4% vs Q4 2009 • Q4 change by market segment: Q4 2010 vs Q4 2009 Data/Telecoms -6.3% Defence -7.5% Industry 49.3% Medical equipment 14.2% Revenue by market segment Offshore/Marine -14.8% Total revenue NOK 455 milli
Slide 8: Revenue by country
Revenue by country * Revenue by country • Revenue growth across all entities: NOK million • Norway 2% higher - Mixed trends with slow development in Data/Telecoms and strong trend in Medical equipment • Sweden 7% higher – Strong recovery Revenue by country Total revenue NOK 455 million in the Swedis
Slide 9: Profit lower due to restructuring
Profit lower due to restructuring Operating profit Group • Operating profit negative by NOK 13.6 million (NOK 15.8 million) • Before restructuring provision the operating profit was NOK 13.4 million and the margin was 2.9%. • Key elements in the restructuring provision: Operating margin Group Ø Layo
Slide 10: Profit by country
Operating profit by country * Profit by country • Mixed performance • Norway relatively stable while Lithuania show a positive development based on increased turnover cost base focus. • Kitron AB in Karlskoga reported a total loss of NOK 30 million in the quarter Operating margin by country whereof
Slide 11: Strong cash flow performance
Operating cash flow Group Strong cash flow performance • Cash flow reached NOK 38.7 million (NOK 62.3 million) and working capital was reduced in the quarter • Working capital remains at a higher level: Ø Increasing activity level/revenue is Net working capital Group driving working capital needs Ø
Slide 12: Equity remains at a solid level
Equity remains at a solid level • Equity of NOK 420.6 million Equity (450.4) and equity ratio of 41.4% (45.9%) • Loss due to restructuring had a negative effect in Q4 • Still among the strongest in the EMS industry Equity ratio 45.9% 45.7% 441% 44.1% 41.4% 12
Slide 13: Market development
Your ambition. Our passion. 4 Kitron Market development
Slide 14: Challenging markets, but positive signs
Challenging markets, but positive signs • Data/Telecoms – loss of major account but new customers emerging • Defence – stable in 2010 but outlook remains promising • Industry – firm recovery based on development in Swedish market • Medical – growth trend continues • Offshore – at a low point but reb
Slide 15: Healthy order backlog
Healthy order backlog Order backlog Group • Order backlog at NOK 836.1 million (NOK 795.8 million) • Positive backlog development in the Medical equipment and Industry segments • Replacing loss of Data/Telecoms Order backlog Segment client is progressing • Significant drop in Offshore – recovery in
Slide 16: Expanding market coverage
Expanding market coverage Update on establishment of new entities – overall implementation on track: • German operation fully integrated and operational • Strong market interest • China factory operational • Strong interest from customers • Small volume production started • SMT line to be operationa
Slide 17: Outlook
Your ami bition. Our passion. 4 Kitron
Slide 18: Outlook
Outlook • Market recovery expected to continue at a slow rate, • Continued focus on operational improvements (supply chain management, ERP, indirect cost etc.) • Operational adjustments in Sweden will contribute to improved profitability • Sales from new units (US and China) expected to contribute f
Slide 19: Thank you!
bank Bla Your ambition. Our passion. 4 Kitron