Kitron Asa · OSL:KIT

Kitron Asa — Q3 2016 Earnings Presentation

18 slides from Kitron Asa's earnings presentation, Oct 25, 2016

  1. Slide 1: First three quarters and Q3 results 2016

    First three quarters and Q3 results 2016 Peter Nilsson, CEO Cathrin Nylander, CFO October 25th, 2016

  2. Slide 2: Financial highlights Q3: Margin improvements on track

    Financial highlights Q3: Margin improvements on track NOK mill. Q3 2016 vs Q3 2015  Stable revenue  Underlying growth -2,1% Revenue 462,6  -1,1 %  Solid order backlog  Underlying growth 11% EBIT 30,1  14,6 %  Improved profitability  6.5% (5.6%) Order backlog 979,9  7,0 %  Net working capit

  3. Slide 3: Financial highlights first three quarters: Margin development

    Financial highlights first three quarters: Margin development NOK mill. 2016 vs 2015  Revenue growth  Underlying growth 2,7% Revenue 1522,7  6,7 %  Improved profitability  5.5% (4.8%) EBIT 83,7  21,1 %  Profitability adjusted for one-offs in Q1 at 5.8% Order backlog 979,9  7,0 %  Improved c

  4. Slide 4: Important agreements in the third quarter

    Major new orders: Important agreements in the third quarter  Medical device contract  In July, Kitron was selected as a new preferred supplier for Dentsply Sirona, the world's largest manufacturer of professional dental products and technologies.  The contract validates Kitron’s long-term investm

  5. Slide 5: Significant change in shareholder structure

    Highlights: Significant change in shareholder structure  During October, the two largest shareholders sold all their shares, resulting in a significant increase in the float of the Kitron share. 5

  6. Slide 6: Financial statements Q3 2016

    Financial statements Q3 2016 6

  7. Slide 7: Revenue Q3: Continued growth in the Industry sector

    Revenue Q3: Continued growth in the Industry sector 563 525 Q3 2016 vs Q3 2015 Share of total revenue 497  468 463 Offshore/Marine -60,0 % 1,4 % Medical devices -10,8 %  23,8 % Defence/Aerospace 7,4 %  30,5 % -1.1 % Energy/Telecoms -4,0 %  15,6 % NOK million Industry 9,4 %  28,7 % Q3 2015 Q4 20

  8. Slide 8: Revenue first three quarters: Growth driven by Industry sector

    Revenue first three quarters: Growth driven by Industry sector 2016 vs 2015 Share of total revenue Offshore/Marine -64,9 %  2,8 % Medical devices 15,1 %  22,2 % Defence/Aerospace 0,8 %  25,9 % Energy/Telecoms 17,7 %  14,0 % Industry 36,4 %  35,1 % 8

  9. Slide 9: Revenue by country Q3: Continued strong growth in Lithuania and Sweden

    Revenue by country Q3*: Continued strong growth in Lithuania and Sweden Q3 2016 vs Q3 2015 Share of total revenue Norway -15,2 %  29,6 % Sweden 13,4 %  26,4 % Lithuania 15,7 %  24,5 % Others -4,2 %  19,5 % 9

  10. Slide 10: Quarterly EBIT: Profitability level continues to improve

    Quarterly EBIT: Profitability level continues to improve  Margin improvements in the quarter  Cost reductions take effect 33,1  Lithuania drives improvement 33,6 from last year 26,3 30,1 22,1 20,5  Profitability in Q1 2016 includes 20,8 one-offs in of MNOK 5 14,3 6,9 NOK million 336 % Margin Q3

  11. Slide 11: Currency effects on intra-group financial loans

    Highlights: Currency effects on intra-group financial loans  Group internal loans of 11 MUSD and 1.9 MEUR  Reduction of other financial items MNOK Q3 2016 Q3 2015 30.09.2016 30.09.2015 Operating profit (EBIT) 30,1 26,3 83,7 69,1 Other financial items -3,2 -3,8 -10,0 -12,7 Net agio -4,2 8,7 -11,5 1

  12. Slide 12: EBIT by country Q3: Lithuania drives profitability

    EBIT by country Q3: Lithuania drives profitability EBIT*  Norway 10,5 10,6 NOK million  Cost reductions drives margin 8,9 improvement 8,1 8,1  Sweden  Efficiency challenges affects margins 6,0 5,7  Lithuania 4,3  EBIT improvement driven by strong Revenue growth  Other  Revenue growth and imp

  13. Slide 13: Balance sheet: Operating cash flow

    Balance sheet: Operating cash flow Cash flow NOK million  Cash flow 87,8  Q2 Cash flow MNOK 36.4 (32.7) 61,0 32,7 36,4 11.3 %  Working capital  Working capital reduction compared -25,3 to last year primarily attributable to Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 improved supplier terms. Net wor

  14. Slide 14: Market development

    Market development www.kitron.com

  15. Slide 15: Order backlog: Strong growth in Industry

    Order backlog: Strong growth in Industry Order backlog Order Backlog MNOK NOK million 989  980 vs. 916 last year. Increase of 7% 980 976 with 11% underlying growth.  Defence: 417 +6% (392)  Medical: 182 +2% (178)  Industry: 255 +14% (223) 916  Energy/Telecom: 111 +35% (82) 902  Offshore: 14 -6

  16. Slide 16: Outlook

    Outlook www.kitron.com

  17. Slide 17: Outlook

    Outlook  For 2016, Kitron expects revenue of between NOK 2 050 and 2 250 million and EBIT margin of 5.3 to 6.3 per cent. Due to currency effects and postponed projects, revenue is now expected to be in the lower half of the indicated range  The growth is driven by increased demand in the Industry

  18. Slide 18: Thank you!

    4 Kitron Your ambition. Our passion. Thank you!

Kitron — Q3 2016 Earnings Presentation on 6ix