Kitron Asa · OSL:KIT
Kitron Asa — Q3 2008 Earnings Presentation
19 slides from Kitron Asa's earnings presentation, Nov 12, 2008
Slide 1: Third quarter results 2008
Third quarter results 2008 12 November 2008 Jørgen Bredesen, CEO Björn Wigström, CFO
Slide 2: Continued strong performance in Q3
Continued strong performance in Q3 Financial highlights • Strong order intake and backlog • Revenue growth of 24% • Doubled operating profit • Tripled profit before tax • Strong operating cash flow 2
Slide 3: Stronger operational efficiency
Stronger operational efficiency Operational highlights • Positive impact of ongoing manufacturing efficiency programme • Start up of second line at Uzliedziai • Capacity adjustments ongoing – e.g. Røros • Transfer of manufacturing to Lithuania ongoing 3
Slide 4: New orders in Q3
New orders in Q3 • Orders within the Defence/Marine segment - August • Kitron AS won orders worth 129 million • Deliveries in Q4 and Q1 2009 • Signals strengthened relationship with customer • Kongsberg Defence & Aerospace (KDA) - September • Kitron AS won orders amounting to NOK 40 million on KDA’s
Slide 5: Financial statements Q3 2008
Financial statements Q3 2008
Slide 6: Solid top line development
Revenue Group Solid top line development 650 600 • Revenue reached NOK 484 million which 550 NOK million 500 reflects a 24% increase compared to Q3 450 400 2007 350 300 • Seasonally soft start in the quarter. High Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 activity in August and September Revenue Marke
Slide 7: Growth in all countries
Growth in all countries Revenue Business area 400 NOK million 300 • Growth across all countries 200 100 • Particularly strong trend in Arendal 0 Norway Sweden Lithuania Q3 2007 Q3 2008 • Transfer of manufacturing ongoing Revenue Business area Total revenue NOK 484 million Lithuania 17% Sweden 19% No
Slide 8: Operating result more than doubled
Operating result more than doubled 60 Operating profit Group • Operating result up by 267%. 50 40 NOK million 30 • Operating margin improved 20 from 3.6% to 7.7% 10 0 • Operational efficiency Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 improvements (5S, LEAN etc) Operating margin Group 9 7,9 7,7 • Relat
Slide 9: All units delivers positive results
All units delivers positive results 35,0 Operating profit Business area • Norway (Arendal) again 30,0 25,0 NOK million delivers a solid profit 20,0 Q3 2007 15,0 Q3 2008 • Sweden continue a 10,0 5,0 convincing trend and confirm - Norway Sweden Lithuania the turnaround. (5,0) Operating margin Business
Slide 10: Operating cash flow improved
Operating cash flow improved Operating cash flow Group • Operating cash flow was NOK 150 28 million vs NOK 29 million 100 NOK million negative in Q3 2007 50 0 • Adjusting for factoring the -50 operating cash flow year to date -100 was NOK 54 million Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 • Inventor
Slide 11: Deferred tax revaluation boosted equity
Deferred tax revaluation boosted equity Equity • Equity ratio improved to almost 450 35% (25%) 400 350 300 NOK million • Sharp increase in retained 250 200 earnings as a result of strong 150 performance 100 50 0 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 • Deferred tax asset reassessed from NOK 25 mill
Slide 12: Market development
Our solutions deliver success! 4 Kitron Market development
Slide 13: Strong demand in most segments
Strong demand in most segments • No indications of weaker demand in Defence / Marine • A steady number of enquiries received • Continued capacity expansion 250 Revenue Market segment • Highly competitive and price sensitive 200 Data/Telecom segment 150 • New technology development in the Defence/Mar
Slide 14: Order intake reaches a higher level
Order intake reaches a higher level 650 Order intake Group 600 550 NOK million 500 450 400 350 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 Total 4Q average 14
Slide 15: Order backlog signals high revenue visibility over the next six months
Order backlog signals high revenue visibility over the next six months Order backlog Group • Order backlog reached NOK 1 100 1 200 1 000 million (NOK 877 million) 800 • The backlog in Defence / Marine 600 400 represents 46% of the total: 200 • Technology upgrades and development - Q3 2007 Q4 2007 Q1
Slide 16: Outlook
4 Kitron Ss deliver succes: Our solution: Outlook » Htttreereny tit
Slide 17: Safeguarding long-term profitability
Safeguarding long-term profitability • Accelerating transfer of production to Lithuania (lower costs) • Adjustment of manning in Karlskoga • 50 employees redundant – negotiations with unions are ongoing • Full effect of the capacity adjustments from September 2009 • Continue program to increase manu
Slide 18: Healthy profitability expected in Q4
Healthy profitability expected in Q4 • Growth target of 10% for 2008 will be exceeded • Stable market conditions expected in Q4 • Healthy profitability and margin level expected for Q4 2008 • EBT expected to more than double compared to Q4 2007 • Management is proactively responding to the possible
Slide 19: El ecuiscte aenver success! Kitron
El ecuiscte aenver success! 4 Kitron