Kitron Asa · OSL:KIT

Kitron Asa — Q3 2006 Earnings Presentation

26 slides from Kitron Asa's earnings presentation, Oct 27, 2006

  1. Slide 1: Quarterly presentation Q3 2006

    Quarterly presentation Q3 2006 Kitron ASA 27 October 2006

  2. Slide 2: Progress in Q3

    Progress in Q3 www.kitron.com „ Continued growth in operating income and order intake „ Strengthened operating profit z Operating profit in both business areas „ Satisfactory gross margin „ Restructuring in Norway (EMS) has been completed z Adjustments following the co-location in Q3 z Planned cost

  3. Slide 3: Positive turn for operating income and restored positive EBT

    Positive turn for operating income and restored positive EBT www.kitron.com 20 500 15 450 400 10 350 5 300 0 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 250 -5 200 -10 150 -15 100 -20 50 -25 0 EBT (adjusted for one-off cost) Operating income (moving averag

  4. Slide 4: Financial information Q3 2006

    Financial information Q3 2006

  5. Slide 5: Increased profitability in Q3

    Increased profitability in Q3 www.kitron.com „ Operating income MNOK 350.2 (MNOK 331.4) „ Satisfactory gross profit margin 39.5 % (39.6 %) „ EBITDA MNOK 21.7 (MNOK 12.3) „ EBIT MNOK 14.3 (MNOK 4.1) „ Strong order backlog MNOK 978 (MNOK 768) „ Net financial costs MNOK 4.2 (MNOK 5.6) „ Satisfactory li

  6. Slide 6: Profit and loss account Q3 2006

    Profit and loss account Q3 2006 www.kitron.com Profit & loss (NOK mill) Q3 2006 Q3 2005 30.09.2006 30.09.2005 31.12.2005 Operating income 350,4 331,4 1 178,8 1 132,9 1 576,3 Cost of material 212,0 200,3 707,4 672,8 945,3 Gross profit margin 39,5 % 39,6 % 40,0 % 40,6 % 40,0 % Payroll expences 91,2 91

  7. Slide 7: Key items – balance sheet

    Key items – balance sheet www.kitron.com „ Equity MNOK 175.9 (MNOK 167.6) z Equity ratio 24.5% (27.5%) „ Total balance MNOK 718.4 (MNOK 608.2) „ Capital tied up in inventory MNOK 317.3 (MNOK 248.7) z Adjusted to a higher level of activity in Q4 „ Accounts receivable and other receivables MNOK 188.7

  8. Slide 8: Balance sheet – assets

    Balance sheet – assets www.kitron.com Balance sheet (NOK mill.) 30.09.2006 30.09.2005 31.12.2005 Assets Tangible fixed assets 126,9 108,4 112,4 Goodwill 19,1 18,5 18,5 Investment in shares 0,2 0,2 0,2 Deferred tax assets 20,0 20,0 20,0 Other receivables 2,6 6,4 3,9 Total fixed assets 168,9 153,5 155

  9. Slide 9: Balance sheet – equity and liabilities

    Balance sheet – equity and liabilities www.kitron.com Liabilities and equity (NOK mill) 30.09.2006 30.09.2005 31.12.2005 Equity 175,9 154,6 151,1 Minority interests 13,0 0,0 Total equity 175,9 167,6 151,1 Loans 45,5 33,3 40,7 Pension commitments 16,2 31,9 14,9 Other provisions 9,3 7,0 15,1 Total lon

  10. Slide 10: Cash flow and consolidated equity

    Cash flow and consolidated equity www.kitron.com Cash flow statement (NOK mill.) Q3 2006 Q3 2005 30.09.2006 30.09.2005 31.12.2005 Net cash flow from operational activities (*) -45,1 -17,1 -130,0 -52,2 9,4 Net cash flow from investment activities -12,3 -6,6 -40,2 -11,4 -39,5 Net cash flow from financ

  11. Slide 11: New factoring arrangement and ICP in Q4

    New factoring arrangement and ICP in Q4 www.kitron.com „ Previous arrangement: Sale of accounts receivable „ New arrangement: Accounts receivable mortgage „ Accounts receivable will be recorded in the Group’s balance sheet „ Implies increase of total balance and decrease of equity ratio z No changes

  12. Slide 12: Market development

    Market development

  13. Slide 13: A sound market in Q3

    A sound market in Q3 www.kitron.com „ Increased volumes and new orders primarily from current customers „ Increased inquiries from new customers in the medical equipment and industry segments z Higher recognition in the market has contributed to more inquiries „ More prototype productions z New Prod

  14. Slide 14: Order backlog per country of production

    www.kitron.com Order backlog per country of production Country 30.09.2006 30.09.2005 Norway 736.7 529.2 Sweden 220.0 231.2 Lithuania (external) 21.6 7.7 Total 978.3 768.1 14 - one step ahead

  15. Slide 15: Order backlog per segment

    Order backlog per segment www.kitron.com Defence/ Data/ Medical NOK mill. marine telecom equipment Industry Total Kitron AS (EMS 287,8 71,0 206,8 111,5 677,1 Kitron AB (EMS) 88,6 0,1 62,5 19,0 170,1 UAB Kitron (EMS) 4,0 4,9 5,0 7,7 21,6 Microelectronics - 74,1 9,7 25,8 109,5 Total 380,3 150,1 283,9

  16. Slide 16: Defence/Marine

    Defence/Marine www.kitron.com „ Reduced turnover within the defence part of the segment „ Reduced turnover in the segment expected for the year as a whole compared to 2005 „ Marine sector expected to continue growing - based on high oil prices „ Well positioned for offset contracts related to the fu

  17. Slide 17: Data/Telecom

    Data/Telecom www.kitron.com „ Slightly lower turnover than in Q3 2005 „ New customers have replaced customers that have moved their production to Asia z Contract with Transmode awarded in September with valued MSEK 50 per year „ Attractive and growing EMS market z Kitron strengthens sales organisati

  18. Slide 18: Medical Equipment

    Medical Equipment www.kitron.com „ Higher turnover than in Q3 2005 „ General growth in the segment and Kitron gains market share „ Production of turn-key products (High Level Assembly). New production line in Horten 18 - one step ahead

  19. Slide 19: Industry

    Industry www.kitron.com „ Higher turnover than in Q3 2005 „ Increased production on existing customers „ Some new customers won in Q3 „ Microelectronics meets more business in automotive 19 - one step ahead

  20. Slide 20: Good market prospects

    Good market prospects www.kitron.com „ Market growth of 10–12 per cent is expected until 2010 z Increased degree of outsourcing (expected to grow from 25% to 30% by 2010) z Increased degree of product development and prototype productions z New products introduction z Increased volume in existing pr

  21. Slide 21: Focus on a more efficient operation

    Focus on a more efficient operation

  22. Slide 22: Alignment of the Swedish operation

    Alignment of the Swedish operation www.kitron.com „ Potential for operational gains in Sweden Geographical breakdown of operating income z Sweden is Kitron’s greatest Q3 2006 Q3 2005 30.09.2006 30.09.2005 31.12.2005 home market Norway 152,0 163,2 517,8 553,9 819,0 Sweden 163,2 141,7 550,0 476,5 624,

  23. Slide 23: New production line in Horten

    New production line in Horten www.kitron.com „ Production for key customer in the medicine segment „ HLA production „ Production of prototypes has started „ Serial production starts in Q4 23 - one step ahead

  24. Slide 24: Prospects

    Prospects

  25. Slide 25: Positive outlook

    Positive outlook www.kitron.com „ Continued good market development „ Improved efficiency of operation z Better margins z Enhanced capacity „ Targeted sales activities z Increased order intake and order backlog z Sales and market efforts further strengthened – particularly in Sweden „ Improved profi

  26. Slide 26: Kitron - One step ahead

    Kitron - One step ahead

Kitron — Q3 2006 Earnings Presentation on 6ix