Kitron Asa · OSL:KIT
Kitron Asa — Q3 2024 Earnings Presentation
13 slides from Kitron Asa's earnings presentation, Oct 24, 2024
Slide 1: 2024 Q3 Presentation
2024 Q3 Presentation Kitron Group | 2024-10-24
Slide 2: CEO comments
CEO comments ▪ Navigating Dynamic Markets • Strength in Nordic and U.S markets: close to double digit growth. • European Slowdown: Economic slowdown in Europe softens demand, particularly affecting regional customers supplying to residential energy solutions, industrial vehicles, battery management,
Slide 3: Third quarter sector trends
Third quarter sector trends Sector trends 2024-Q3 • Connectivity: Connectivity o Sector growth -11%. Industrial IOT, Network gateways, and 5G Expect full sector declining further in the quarter. growth returning o Sensor equipment, satellite communication and tracking equipment beyond mid 2025. acce
Slide 4: Order backlog
Order backlog Order Backlog ▪ Order backlog: 457.7 €M, -9% (502.1 €M) year-over year. Sequentially the order backlog is increased with 3M€ or 1% compared to the previous quarter. ▪ The Defence/Aerospace sector remains robust due to increased defense spending driven by global security concerns, regio
Slide 5: Third Quarter 2024 Highlights
Third Quarter 2024 Highlights ▪ Revenue: 145.1 -19.0 % (179.2) ▪ EBIT: 10.7, -53% (16.2) ▪ EBIT margin: 7.4% (9.0%) ▪ ROOC: 16.8% (23.2%) ▪ Cash Cycle Conversion days: 123 (103) ▪ Operating Cash flow 2.2 (2.5) ▪ NIBD: 118.4 (141.6) ▪ NIBD/EBITDA 1.6 (1.7) ▪ Net Gearing: 0.61 (0.85) ▪ Equity %: 35.2%
Slide 6: Year to date 2024 Highlights
Year to date 2024 Highlights ▪ Revenue: 486.6 -16.0% (576.1) ▪ EBIT: 36.3, -31.1% (52.7) ▪ EBIT margin: 7.5% (9.1%) ▪ EBIT and EBIT % adj for non-recurring items in Q1 24: o 41.1 and 8.4% ▪ Operating Cash flow 29.4 (25.6) ▪ Net Income 23.1 (38.7) ▪ EPS (EUR): 0.12, -40% (0.20) *Performance measures
Slide 7: Business sectors
Business sectors ▪ Nordics & North America show 9.3% growth, profit margins at 6.8% ▪ For CEE and Asia; volume reductions of 40% and 35% compared to last year, Profit margins at 8.5% and 10.9% respectively. Revenue Business Sectors Q3 2024 Q3 2023 Change 30.09.2024 30.09.2023 31.12.2023 Nordics & No
Slide 8: Cash flow and working capital
Cash flow and working capital €M Cash Flow Q3 2024 Q3 2023 Change 30.09.2024 30.09.2023 31.12.2023 ▪ Q3 Cash flow from operating Profit before tax 8.4 12.3 -3.9 29.6 47.9 64.7 activities at 2.3 €M (2.5 €M). Depreciations 4.6 4.5 0.1 13.8 12.8 17.6 Change in inventory, accounts ▪ Net working capital
Slide 9: Ratios
Ratios ▪ Net gearing and NIBD/EBITDA 0.6 and 1.6 Ratios 30.09.2024 30.09.2023 Change 31.12.2023 R3 NWC % sales 31.0 % 26.7 % 4.3 % 24.4 % R3 ROOC % sales 16.8 % 23.2 % -6.4 % 26.9 % R3 Cash Cycle Conversion 123 103 20 95 Net Interest bearing debt €M 118.4 141.6 -23.2 129.4 Net gearing 0.61 0.85 -0.2
Slide 10: Outlook full-year 2024
Outlook full-year 2024 In September, the full-year 2024 outlook was updated: ▪ Revenues are expected at between EUR 635 and 660 million. ▪ EBIT is expected between EUR 44 and 50 million, including EUR 4.8 million in restructuring costs in the first quarter 2024. 10
Slide 11: Key take-ways
Key take-ways • Strength in Nordic and U.S. Markets continues. • European Slowdown affects demand in Electrification and Industry Sectors. • Resiliency in energy infrastructure expansion and advanced chip development drives growth with global customers. • Strong, sustained demand in Defence and Aero
Slide 12: 2024 Q3 Q&A
2024 Q3 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 –