Kitron Asa · OSL:KIT
Kitron Asa — Q2 2024 Earnings Presentation
13 slides from Kitron Asa's earnings presentation, Jul 11, 2024
Slide 1: 2024 Q2 Presentation
2024 Q2 Presentation Kitron Group | 2024-07-11
Slide 2: CEO comments
CEO comments ▪ Robust Profitability: Kitron has demonstrated robust profitability, particularly in the Defense & Aerospace sector, where scale continues to drive profits. ▪ Signs of market turnaround: Despite initial setbacks, there are promising signs of recovery in several key markets, including A
Slide 3: Second quarter sector trends
Second quarter sector trends Sector trends 2024-Q2 ▪ Connectivity: Connectivity o Sector decline 19% (+6% vs LQ) Expect slow growth o Continued quarter-on-quarter growth vs. Q1 and in outlook. returning to the sector o Growth on products supporting infrastructure investments and fleet in mid 2024 ma
Slide 4: Order backlog
Order backlog Order Backlog ▪ Order backlog: 454.5 €M, -15% (534.9 €M) year-over year. Sequentially the order backlog is increased with 10M€ or 2% compared to the previous quarter. ▪ The Defence/Aerospace sector remains robust due to increased defense spending driven by global security concerns, reg
Slide 5: Second quarter 2024 Highlights
Second quarter 2024 Highlights ▪ Revenue: 167.6 -18.8% (206.3) ▪ EBIT: 15.0, -21.9% (19.2) ▪ EBIT margin: 8.9% (9.3%) ▪ ROOC: 22.3% (28.2%) ▪ Cash Cycle Conversion days: 112 (84) ▪ Operating Cash flow 18.8 (12.7) ▪ NIBD: 122.9 (142.5) ▪ NIBD/EBITDA 1.6 (1.8) ▪ Net Gearing: 0.7 (0.9) ▪ Equity %: 33.9
Slide 6: First half year 2024 Highlights
First half year 2024 Highlights ▪ Revenue: 341.5 -14.0% (396.9) ▪ EBIT: 25.5, -30.1% (36.5) ▪ EBIT margin: 7.5% (9.2%) ▪ EBIT and EBIT % adj for non-recurring items in Q1 24: o 30.3 and 8.9% ▪ Operating Cash flow 27.3 (23.2) ▪ Net Income 16.9 (29.0) ▪ EPS (EUR): 0.09, -44% (0.15) *Performance measur
Slide 7: Business sectors
Business sectors ▪ Nordics & North America show 15% growth, increased profits and profit margins at 9.3% ▪ For CEE and Asia; volume reductions of around 40%, compared to last year profit margins at 8.9% and 11.9% Revenue Business Sectors Q2 2024 Q2 2023 Change 30.06.2024 30.06.2023 31.12.2023 respec
Slide 8: Cash flow and working capital
Cash flow and working capital €M Cash Flow Q2 2024 Q2 2023 Change 30.06.2024 30.06.2023 31.12.2023 ▪ Q2 Cash flow from operating Profit before tax 12.4 19.2 -6.8 21.2 35.6 64.7 Depreciations 4.6 4.3 0.3 9.3 8.4 17.6 activities at 18.8 €M (12.7 €M). Change in inventory, accounts ▪ Dividend paid in th
Slide 9: Ratios
Ratios ▪ Stable debt position ▪ Net gearing and NIBD/EBITDA 0.7 and 1.6 Ratios 30.06.2024 30.06.2023 Change 31.12.2023 R3 NWC % sales 28.4 % 22.3 % 6.1 % 24.4 % R3 ROOC % sales 22.3 % 28.2 % -5.9 % 26.9 % R3 Cash Cycle Conversion 112 84 28 95 Net Interest bearing debt €M 122.8 142.5 -19.7 129.4 Net
Slide 10: Outlook full-year 2024
Outlook full-year 2024 For the full year, we anticipate revenues to be between 660 and 710 EUR million, with an operating profit (EBIT) of 53 to 60 EUR million, including 5 EUR million in restructuring costs incurred in the first quarter. 10
Slide 11: Key take-ways
Key take-ways ▪ Robust Profitability: Particularly in the Defense & Aerospace sector, where scale continues to drive profits. ▪ Signs of market turnaround: Promising signs of recovery in several key markets, including Asia and Europe. ▪ Kitron positioned for sustained growth with growth in Key Marke
Slide 12: 2024 Q2 Q&A
2024 Q2 Q&A
Slide 13: 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 –