Kitron Asa · OSL:KIT
Kitron Asa — Q2 2021 Earnings Presentation
16 slides from Kitron Asa's earnings presentation, Jul 12, 2021
Slide 1: Q2 results 2021
Q2 results 2021 Peter Nilsson, CEO Cathrin Nylander, CFO Kitron Group | 2021-07-12
Slide 2: Solid quarter and record order backlog
Solid quarter and record order backlog NOK Million Q2 2021 vs Q2 2020 NOK Million 2021 vs 2020 Revenue 993.8 -4.5 % Revenue 1 931.4 0.7 % EBIT 73.1 -16.9 % EBIT 138.5 -5.4 % Order Backlog 2 293.5 9.1 % Order Backlog 2 293.5 9.1 % Operating cash flow 109.3 1875.2 % Operating cash flow 1
Slide 3: Highlights and important events
Highlights and important events ▪ Underlying revenue growth of 5%, currency negative effect of 10% ▪ Strong growth in Industry and Electrification. Medical devices volumes normalized. ▪ Growing in line with long term targets despite challenges on supply chain and currencies ▪ EBIT margin 7.4% (8.4%)
Slide 4: Financial results
Financial results
Slide 5: Electrification and Industry drives growth
Electrification and Industry drives growth Q2 2021 vs Q2 2020 Share of total revenue Q2 2021 vs Q2 2020 Share of total revenue Connectivity 107.6 20.9 % 10.8 % Norway 287.3 22.2 % 28.2 % Electrification 273.3 26.4 % 27.5 % Sweden 198.8 9.6 % 19.5 % Industry 253.9 30.1 % 25.5 % CEE 343.0 3.
Slide 6: Currency development and selling currencies
Currency development and selling currencies ▪ Currency development NOK/EUR NOK/SEK 12.00 1.10 -4% negatively affects growth -8% 11.50 1.05 11.00 10.50 1.00 ▪ Re-calculating the selling 0.95 10.00 9.50 0.90 currencies shows a growth of 9.00 8.50 0.85 0.80 about 5% i.e. a total ~10% 2019 2019 2019 201
Slide 7: EBIT at strategic growth path
EBIT at strategic growth path ▪ EBIT development in line with strategic trajectory and outlook ▪ Economies of scale and exceptional utilization of overhead Q2/Q3 2020 ▪ Material supply demanding 2021 88.0 90.5 75.7 73.1 65.4 56.4 58.4 54.2 NOK Million 39.6 13 % Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-202
Slide 8: Q2 EBIT by country: Strong development
Q2 EBIT by country: Strong development ▪ Norway and Sweden at solid margin levels and with improved profits EBIT ▪ CEE (Lithuania and Poland) ended at 49.7 good profits and profitability levels. o Revenue and margins affected by 27.1 volume pushouts 21.2 24.1 NOK Million 16.3 ▪ Others (China and US)
Slide 9: Balance sheet: Capital stabilized
Balance sheet: Capital stabilized ▪ Working capital ratios Net working capital o NOWC* 25.8% (24.5%) 1 134 o Cash conversion cycle* 96 (93) 1 064 o ROOC* 19.1% (22.1%) 1 059 1 035 1 034 NOK Million (2.3) % ▪ Cash flow Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 o Q2 Cash flow from operations MNOK 109 (5
Slide 10: Market development
Market development
Slide 11: Strong order backlog
Strong order backlog ▪ Growth 9% - supports the demand outlook Q2 2021 vs Q2 2020 Share of total revenue Connectivity 241.2 131.3 % 10.5 % Order Backlog Electrification 678.0 48.3 % 29.6 % 2 102 1 863 2 006 2 060 2 293 Industry 36.8 % 15.7 % NOK million 360.0 Medical Devices 279.8 -37.0 % 12
Slide 12: Outlook
Outlook
Slide 13: 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 14: Key takeaways Summary Q2 2021
Key takeaways Summary Q2 2021 ▪ Solid quarter despite unfavorable currencies and challenges in the supply chain. ▪ Order backlog and full-year demand outlook supports continued growth. ▪ 2021 Outlook reconfirmed and maintained. 14
Slide 15: Q&A
Q&A
Slide 16: 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 –