Kitron Asa · OSL:KIT
Kitron Asa — Q2 2003 Earnings Presentation
31 slides from Kitron Asa's earnings presentation, 2003
Slide 1: Kitron ASA Presentation Second Quarter 2003
Kitron ASA Presentation Second Quarter 2003
Slide 2: Main Features – 2nd Quarter 2003
Main Features – 2nd Quarter 2003 Lower costs strengthen expectations of higher profitability in second half of 2003 • Sales in second quarter: NOK 475m (551m) • Gross margin: 38.8% (37.3%) • EBT: NOK - 2.7m (-10.6m) • Positive cash flow of NOK 42m (6m) from operations • Reduction of 253 full-time po
Slide 3: Performance trend Q2 2002 – Q2 2003
Performance trend Q2 2002 – Q2 2003 Gross profit Q2 2002 - Q2 2003 Change: NOK –21.4m Cause: Sales down NOK 76.5m 210 000 205 551 205 000 200 000 195 000 190 000 184 132 185 000 180 000 175 000 170 000 Q2 2002 Q2 2003 Operating costs Q2 2002 - Q2 2003 Change: NOK –22.8m Cause: 1) Payroll costs down
Slide 4: Development of payroll costs
Development of payroll costs Full-time positions - Kitron Group at 31.12.02 31.12 Added from Tandberg Data 65 Added from Alcatel Norkrets 24 Increase in workforce Kitron Lithuania 29 Laid off/left in first half 2003 (253) Kitron Group total at 30.06.03 1 377 Development of payroll costs 150 147 147
Slide 5: Performance trend Q2 2002 – Q2 2003
Performance trend Q2 2002 – Q2 2003 Net financial costs Q2 2002 - Q2 2003 Change: NOK – 6.6m Cause: Less tied-up capital, 20 000 15 898 no write-down of shares 15 000 9 282 10 000 5 000 - Q2 2002 Q2 2003 Loss before tax Q2 -2002 - Q2 2003 Change: NOK 8m - Q2 2002 Q2 2003 (2 000) (2 691) (4 000) (6 0
Slide 6: Income Statement 2nd Quarter 2003
Income Statement 2nd Quarter 2003 (Figures in NOK 1.000) Income Statement Q2 2003 Q2 2002 Per 30jun03 Per 30jun02 2002 (audited) Operating income 474 827 551 345 931 761 1 074 401 1 984 279 Cost of materials 290 695 345 794 563 329 673 430 1 238 385 Gross margin 38,8 % 37,3 % 39,5 % 37,3 % 37,6 % Pa
Slide 7: Balance sheet per 30 June 2003
Balance sheet per 30 June 2003 Development total balance sheet Q2 2002 - Q2 2003 Change: NOK -94,0 mill. 920 000 909 605 900 000 880 000 860 000 840 000 815 573 820 000 800 000 780 000 760 000 2nd Q 2002 2nd Q 2003 Development inventory Q2 2002 - Q2 2003 Change: NOK -56,7 mill. 400 000 379 115 380 0
Slide 8: Balance sheet per 30 June 2003
Balance sheet per 30 June 2003 Development accounts receivable Q2 2002 - Q2 2003 Change: NOK -98,9 mill. 250 000 211 183 200 000 150 000 112 247 100 000 50 000 - 2nd Q 2002 2nd Q 2003 Development interest-bearing liabilities Q2 2002 - Q2 2003 Change: NOK -94,8 mill. 450 000 400 000 350 000 300 000 1
Slide 9: Balance sheet per 30 June 2003
Balance sheet per 30 June 2003 (Figures in NOK 1.000) Balance 30June2003 30June2002 31Dec2002 Deffered tax assets 109 428 85 138 102 206 Intangible assets 19 693 18 170 16 470 Tangible assets 147 905 158 239 156 606 Financial assets 24 123 19 763 25 095 Total fixed assets 301 149 281 310 300 377 Inv
Slide 10: Balance per 30 June 2003
Balance per 30 June 2003 Liabilities & shareholders equities 30June2003 30June2002 31Dec2002 Share capital 286 010 288 786 223 018 Accured equity -11 227 -16 937 - Other reserves 4 189 - - Minority reserves 5 311 - 4 182 Total shareholders’ equity 284 283 271 849 227 200 Pension commitments 9 175 10
Slide 11: Cash flow statement & shareholders’ equity per 30 June 2003
Cash flow statement & shareholders’ equity per 30 June 2003 Cash flow statement (NOK 1 000) Q2 2003 Q2 2002 30Jun03 30Jun02 2002 (audited) Net cash flow from operating activites 42 310 6 044 (10 652) 55 784 200 536 Net cash flow from investing activities (7 724) (1 390) (11 126) (3 626) (23 404) Net
Slide 12: Top 20 shareholders per 26 August 2003
Top 20 shareholders per 26 August 2003 RankShareholders Per 26 Aug 2003 % share 1 Whitecliff ASA 36 037 485 28,71 % 2 KongsbergGruppen ASA 33 914 292 27,01 % 3 SEB klientkonto 10 058 033 8,01 % 4 Tine Pensjonskasse 7 987 000 6,36 % 5 Aksjefondet Gambak 3 000 000 2,39 % 6 Sparebankens Sikringsfond 2
Slide 13: Development market sectors
Development market sectors Turnover development of market sectors 2nd Q 2002 – 2nd Q 2003 200 178 165 145 142 150 113 113 95 2Q 2002 100 76 2Q 2003 50 - Defence Data/telecom Medical Industry Turnover development of market sectors 1st Q 2003 – 2nd Q 2003 200 138 145 140 142 150 107 113 1st Q 2003 100
Slide 14: Defence/Marine
Defence/Marine • Although slightly down on last year’s second quarter, this was the company’s largest segment during the period • The decline was due to one client in the marine segment 30% • A better market for oil/gas exploration services is expected to boost the level of activity in 2004 • Prospe
Slide 15: Data/Telecom
Data/Telecom • The market remained depressed in the second quarter and this has continued into the second half-year • Some clients point to signs of recovery • Indications that negative market trends are being replaced by stability and the possibility of positive prospects • Kitron EMS depends on an
Slide 16: Medical
Medical • The slight decline in turnover in the second quarter compared with the same period last year was due to client-specific circumstances • Ongoing development projects are expected to 16% generate production contracts for new products • Breakthrough with limited module deliveries to major pla
Slide 17: Industry / Other
Industry / Other • Turnover in line with previous year • Very positive trend among some clients engaged in industrial applications • Total volume in 2003 affected by reduction in stocks held by one major client in this segment 24% • Kitron is highly dependent on the market situation for individual c
Slide 18: Looking ahead
Looking ahead • Order backlog NOK 900m (820m) • Estimated turnover for second half-year: • Third quarter – roughly 5% down on last year (NOK 396 mill) • Fourth quarter – marginally down on last year (NOK 514m) • Estimates based on order reserve and forecasts • Taken separately, the second half-year
Slide 19: Focus on efficiency
Focus on efficiency
Slide 20: Focused factories – higher productivity
Focused factories – higher productivity Value-creative through-put time Non-value-creative through-put time Delivery Packing Finishing Post-sale assembly Soldering Manual assembly 5% Surface assembly 8% Stock management 85> % Kitting Total through-put time No value creation (Queues-waiting-set-up Va
Slide 21: A single integrated and scaleable production system
A single integrated and scaleable production system EMS Hisøy Kilsund Oslo Kongsberg Karlskoga Litauen Microelectronics: Røros Jønkøping
Slide 22: A single integrated and scaleable production system
A single integrated and scaleable production system EMS Hisøy Kilsund Oslo Kongsberg Karlskoga Litauen Microelectronics: Røros Jønkøping
Slide 23: Focus on the development of value-added services
Focus on the development of value-added services
Slide 24: Product Roadmap – promoting profitability
Product Roadmap – promoting profitability EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Slide 25: Kitron’s strategy
Product Roadmap – promoting profitability EMS Market Profitability Kitron’s strategy Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Slide 26: Ideal division of projects
Ideal division of projects EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Slide 27: Status Defence&Marine clients/projects
Status Defence&Marine clients/projects EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Slide 28: Status Data&Telecom clients/projects
Status Data&Telecom clients/projects EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Slide 29: Industry&Other clients/projects
Industry&Other clients/projects EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Slide 30: Status Medical clients /projects
Status Medical clients /projects EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Slide 31: Proximity to the market Competence Development services
Focus on high-value clients Proximity to the market Competence Development services Service