Kitron Asa · OSL:KIT
Kitron Asa — Q2 2005 Earnings Presentation
22 slides from Kitron Asa's earnings presentation, Aug 17, 2005
Slide 1: Quarterly presentation Q2 2005 Kitron ASA
Quarterly presentation Q2 2005 Kitron ASA 17 August 2005
Slide 2: Continued progress
Continued progress www.kitron.com Positive operating profit in all operating units Back in the black Decreased cost base – progress on target Turnover as expected Satisfactory cash position - one step ahead
Slide 3: Highlights Q2
Highlights Q2 www.kitron.com Operating income NOK 421.6 mill (2004: NOK 453.1 mill) Gross margin 40.5% (2004: 40.1%) EBITDA NOK 16.3 mill (2004: NOK negative at 32.2 mill) EBIT NOK 6.4 mill (2004: NOK negative at 40.8 mill) Cash flow from operations negative at NOK 6.8 mill (2004: negative
Slide 4: Financial information Q2 2005
Financial information Q2 2005
Slide 5: Cost savings gives effect
Cost savings gives effect www.kitron.com According to Kitron’s plans Payroll expenses reduced by NOK 35.2 mill in the quarter Total cost savings in first half year by NOK 56.2 mill Net financial expenses NOK 6.2 mill (2004: NOK 6.2 mill) Including disagio NOK 1.1 mill Further reduced int
Slide 6: Interim report Q2 2005
Interim report Q2 2005 www.kitron.com Interim report (NOK mill) Q2 2005 Q2 2004 Pr. 30.06.05 Pr. 30.06.04 Pr.31.12.04 Operating income 421,6 453,1 801,5 906,0 1 748,0 Cost of material 250,7 271,3 472,5 541,9 1 062,1 Gross profit margin 40,5 % 40,1 % 41,0 % 40,2 % 39,2 % Payroll expences 123,6 149,2
Slide 7: Highlights – balance sheet
Highlights – balance sheet www.kitron.com Total balance sheet of NOK 583.6 mill (2004: NOK 728.9 mill) Equity NOK 168.6 mill (NOK 141.2 mill) Equity of 28.9% Capital tied up in inventory cut to NOK 231.0 mill (2004: NOK 302.1 mill) Accounts receivable of NOK 111.2 mill (2004: NOK 158.6 mil
Slide 8: Balance sheet – Assets
Balanse sheet – Assets www.kitron.com Balance sheet (NOK mill) Pr. 30.06.05 Pr. 30.06.04 31.12 2004 Deferred tax credits 20,0 20,0 20,0 Other intangible fixed assets 19,6 19,2 21,7 Fixed assets 110,0 128,3 120,6 Financial assets 7,5 13,3 8,5 Total fixed assets 157,1 180,8 170,8 Inventory 231,0 302,1
Slide 9: Balance sheet – liabilities and shareholders' equity
Balanse sheet – liabilities and shareholders’ equity www.kitron.com Liabilities and shareholders' equity (NOK mill) Pr. 30.06.05 Pr. 30.06.04 Pr. 31.12 04 Paid-in equity 155,8 130,6 116,7 Retained erarnings - Minority interests 12,8 10,6 12,6 Total shareholders' equity 168,6 141,2 129,2 Pension comm
Slide 10: Cash flow and shareholders' equity
Cash flow and shareholders’ equity www.kitron.com Cash Flow Statement (NOK mill) Pr. 30.06.05 Pr. 30.06.04 31.12.2004 Net cash flow from operational activities -38,4 -68,5 -33,0 Net cash flow from investment activities -4,8 -5,7 -23,7 Net cash flow from financing activities 44,6 44,1 34,7 Net change
Slide 11: Market developments
Market developments
Slide 12: Expanding markets
Expanding markets www.kitron.com Increasing number of tenders – long decision-making processes An increasing number of comanies assess outsourcing Kitron expects to take its share of growth in the Norwegian EMS market Increasing interest for microelectronics Strengthened commitment in the
Slide 13: Quality first
Quality first www.kitron.com Most important parameters for the customer Quality Geography Expertise Price Most important Nordic competitors Flextronic, Partnertech, Note, Hapro and Norautron New competitor: Enics - one step ahead
Slide 14: Defence/marine
Defence/marine www.kitron.com Higher activity compared with Q2 2004 Expecting 2005 turnover as a whole to be on a par with last year Two huge contracts in Q2 Working with new opportunities based on offset contracts - one step ahead
Slide 15: Data/telecom
Data/telecom www.kitron.com Slight growth in revenue from Q1 Increased activity from Q-Free Increasing orders from Ericsson (Microelectronics) - one step ahead
Slide 16: Medical equipment
Medical equipment www.kitron.com Market in growth Turning to production of complete products (High Level Assembly) Kitron is technologically well positioned in this market segment - one step ahead
Slide 17: Industry
Industry www.kitron.com Stable market Slight growth in revenue from Q1 Continuity characterise customer relations - one step ahead
Slide 18: Order backlog
Order backlog www.kitron.com - one step ahead
Slide 19: Prospects
Prospects Moe q Kitron
Slide 20: Steady course
Steady course www.kitron.com Norway and Sweden are the main markets Strong commitment in Sweden Profitability 2005 Continued growth in Lithuania Continued successful sourcing - one step ahead
Slide 21: UAB Hermis Capital JSC
UAB Hermis Capital JSC www.kitron.com Ownership per 15 August : 35.6% Purchased Whitecliff’s 28.7% share on 21 July Lithuanian private equity-company Started the investment activity in year 2000 Bank total assets: more than Euro 100 million Representatives on Kitron’s board of directors
Slide 22: Kitron ASA's new boardmembers
Kitron ASA’s new boardmembers www.kitron.com Nerijus Dagilis (chairman) Magnus B. Lindseth (board member) Nerijus Dagilis is one of the founders of Magnus B. Lindseth has experience from Hermis Capital chairman, director and advisor i various Dagilis is also Hermis Capital’s chairman fields of