Kitron Asa · OSL:KIT
Kitron Asa — Q3 2009 Earnings Presentation
9 slides from Kitron Asa's earnings presentation, Nov 4, 2009
Slide 1: Q3 results 2009: Weak revenue and operating profit
Q3 results 2009 4 November 2009 Jørgen Bredesen, CEO Björn Wigström, CFO Weak revenue and operating profit Financial highlights • Strong balance sheet and liquidity • Backlog improved compared to Q2 • Revenue down 25.5% vs Q3 last year • Operating profit NOK 4.4 million • Significant reduction of di
Slide 2: Aligning capacity to the market
Aligning capacity to the market Operational highlights • The confidence in the market is slowly returning – customers increase inventory levels • Capacity adjustments still ongoing. Downsizing with 24 FTEs in Q3 and 351 FTEs year to date. • Continued focus on operational streamlining and margin impr
Slide 3: Revenue lower
Revenue Group Revenue lower 660 556 • Revenue in Q3 ended at NOK 339 million 454 427 NOK million which represents a 25.5% reduction 339 • Q3 is seasonally lower than other quarters • Most significant decline within the Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Industry and Offshore segments Revenue by
Slide 4: Reduced profitability
Reduced profitability Operating profit Group 51,9 • Operating profit in Q3 was NOK 4.4 million (NOK 34.6 million) 34,6 NOK million 31,5 • Main factors behind lower profit: • Revenue lower • Cost and productivity issues related with 2,9 4,4 the capacity adjustment • Different product mix Q3 2008 Q4 2
Slide 5: Cash flow and increasing equity ratio
Operating cash flow Group Cash flow 66,5 NOK million 35,0 • Cash flow was NOK 11.0 million 27,8 (NOK 27.8 million) 11,0 • Investments level reduced significantly -14,4 • Reduction in working capital is Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 driving positive development Net working capital Group • I
Slide 6: Market development: Decreased demand in Q3
Market development Decreased demand in Q3 • Medical equipment continue strong trend – several companies ramping up manufacturing • Significant drop in Offshore but signs of stronger market ahead – Defence segment maintain strong development • Data/Telecoms trend mixed • Industry segment is stabilisi
Slide 7: Order intake and order backlog
Order intake at a low level Order intake Group 650 600 550 NOK million 500 Q3 average 450 400 350 Total 300 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 13 Order backlog shows signs of recovery 1100 Order backlog Group 971 • Order backlog at NOK 778 million 732 742 778 (NOK 1100 million) NOK mill
Slide 8: Outlook
Outlook Outlook • Capacity adjustments are yielding desired effect • Annual total cost reductions expected to be about NOK 130 million • Further adjustments related to transfer of manufacturing and operational improvements can not be ruled out • Investments to improve competitiveness and training of
Slide 9: Thank you!
Thank you! 17 9