Kitron Asa · OSL:KIT

Kitron Asa — Q2 2017 Earnings Presentation

20 slides from Kitron Asa's earnings presentation, Jul 13, 2017

  1. Slide 1: First half year and Q2 results 2017

    First half year and Q2 results 2017 Peter Nilsson, CEO Cathrin Nylander, CFO 13 July, 2017

  2. Slide 2: Strong growth and milestone EBIT margin of 7%

    Financial highlights Q2: Strong growth and milestone EBIT margin of 7% NOK mill. Q2 2017 vs Q2 2016  Strong revenue growth  Underlying growth 16.1% Revenue 648.7  15.2 %  Strong profitability  EBIT margin 7.0% (5.9%) EBIT 45.5  37.5 %  Solid order backlog  Underlying growth 2.2% Order backlo

  3. Slide 3: Strong revenue growth and improved profitability

    Financial highlights First half year: Strong revenue growth and improved profitability NOK mill. 2017 vs 2016  Strong revenue growth  Underlying growth 19.4% Revenue 1233.7  16.4 %  Strong profitability  EBIT margin 6.2% (5.1%) EBIT 76.3  42.5 %  Solid order backlog  Underlying growth 2.2% O

  4. Slide 4: Important agreements in the second quarter

    Major new orders: Important agreements in the second quarter  Kitron received communications order from KONGSBERG  Kitron received a NOK 34 million order from Kongsberg Defence Systems for military communications equipment.  Kitron will supply various communications products related to an existin

  5. Slide 5: Important agreements in the second quarter

    Major new orders: Important agreements in the second quarter  Kitron signed contract with Husqvarna Group  The new agreement includes five products for the Husqvarna Robotic Lawn Mowers product range and is in addition to existing manufacturing volumes.  The potential contract value is NOK 600 mi

  6. Slide 6: Investing for further growth

    Highlights: Investing for further growth  Over the past years, Kitron has invested in its facilities, ensuring that they are modern, highly competitive and able to handle expected growth.  In the second quarter, the move and major upgrade of the Swedish plant in Jönköping was completed, with the o

  7. Slide 7: Financial statements First half year and Q2 2017

    Financial statements First half year and Q2 2017 7

  8. Slide 8: Continued strong growth in several sectors

    Revenue Q2: Continued strong growth in several sectors 649 Q2 2017 vs Q2 2016 Share of total revenue 563 570 585 Industry 31.6 %  36.9 %  463 Defence/Aerospace 18.1 % 29.5 % Medical devices -10.7 %  16.6 % 15.2 % Energy/Telecoms 21.6 %  15.4 % NOK million Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

  9. Slide 9: Continued strong growth in several sectors

    Revenue First half year: Continued strong growth in several sectors 2017 vs 2016 Share of total revenue Revenue first half year 1 234 Industry 26.2 %  38.1 %  1 060 960 Defence/Aerospace 29.6 % 28.9 % Medical devices -11.1 %  16.9 % 16.4 % Energy/Telecoms 22.3 %  14.8 % NOK million 2015 2016 201

  10. Slide 10: Continued strong growth in Lithuania and Sweden

    Revenue by country Q2*: Continued strong growth in Lithuania and Sweden Q2 2017 vs Q2 2016 Share of total revenue Norway -5.4 %  29.8 % Sweden 33.0 %  27.4 % Lithuania 21.2 %  29.4 % Others 2.3 %  13.4 % 10

  11. Slide 11: Continued strong growth in Lithuania and Sweden

    Revenue by country First half year*: Continued strong growth in Lithuania and Sweden 2017 vs 2016 Share of total revenue  422 408 396 Norway -3.0 % 29.1 % 357 2016 2017 346  276 Sweden 29.2 % 26.3 % 184  170 Lithuania 21.9 % 31.0 %  NOK million Others 8.5 % 13.6 % Norway Sweden Lithuania Others

  12. Slide 12: EBIT margin milestone of 7% reached

    Quarterly EBIT: EBIT margin milestone of 7% reached  Strong volume and profitability 45.5  Cost reductions take effect 33.6 34.1 33.1 30.8 30.1 26.3  Inefficiencies due to 22.1 20.5 relocations in Q1 and Q4 2016 and Q1 2017 NOK million 106 %  Profitability in Q1 2016 includes negative one- Q2 20

  13. Slide 13: Profits improved for all sites

    EBIT by country Q2: Profits improved for all sites  Norway EBIT*  Cost reductions drive margin 17.2 improvement. 15.0  Sweden 12.0  Strong volume and margin 11.2 improvements 10.2 8.9  Lithuania 7.5  EBIT improvement driven by strong 5.1 revenue growth  Other  Revenue growth and improved Q2

  14. Slide 14: Profitability improvements

    EBIT by country First half year: Profitability improvements  Norway EBIT*  Cost reductions drives margin 37.0 improvement. Relocation Q1 2016. 30.3  Sweden  Efficiency challenges and relocation in 20.0 Q1 2017, improved Q2 16.1 15.4  Lithuania 10.8 12.8 10.8  EBIT improvement driven by strong

  15. Slide 15: Cash flow and working capital

    Balance sheet: Cash flow and working capital Operating cash flow  Cash flow 63.1 NOK million 61.0  Q2 Cash flow MNOK 63.1 (61.0)  YTD Cash flow MNOK 47.6 (35.7) 36.4 36.4 3.4 %  Low financial gearing  NIBD / EBITDA 1.3 (1.4) -15.5 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017  Working capital Net wo

  16. Slide 16: Market development

    Market development www.kitron.com

  17. Slide 17: Solid order backlog

    Order backlog: Order backlog Solid order backlog NOK million Order backlog MNOK  1018 vs. 989 last year. Increase of 1 059 2.9% with 2.2% underlying growth.  Defence: 403 -16% (480)  Medical: 162 -3% (167) 1 018 1 019  Industry: 318 +46% (217)  Energy/Telecom: 123 +14% (109) 989  Offshore: 12

  18. Slide 18: Outlook

    Outlook www.kitron.com

  19. Slide 19: Outlook

    Outlook  For 2017, Kitron expects revenue to grow to between NOK 2 150 and 2 350 million. EBIT margin is expected to be between 5.6 and 6.4 per cent.  Revenue is now expected to be in the higher end of the indicated range.  The growth is primarily driven by customers in the Industry sector.  The

  20. Slide 20: Thank you!

    4 Kitron Your ambition. Our passion. Thank you!

Kitron — Q2 2017 Earnings Presentation on 6ix