Kitron Asa · OSL:KIT

Kitron Asa — Q4 2006 Earnings Presentation

21 slides from Kitron Asa's earnings presentation, Feb 9, 2007

  1. Slide 1: Quarterly presentation Q4 2006 and preliminary full year results

    Quarterly presentation Q4 2006 and preliminary full year results 9 February 2007 Jørgen Bredesen, CEO Erling Svela, CFO

  2. Slide 2: Q4: Continued growth – increased profits

    Q4: Continued growth – increased profits www.kitron.com „ Strongly increased profitability z EBT MNOK 18.1 (MNOK -50.0) „ Revenue growth 16% z MNOK 514.8 (MNOK 443.5) „ Order intake +8.5% z MNOK 496 (MNOK 457) „ Cash flow from operational activities z MNOK 139.6 (MNOK 61.6) „ Continued market growth

  3. Slide 3: EBT and revenue

    EBT and revenue www.kitron.com 20 500 15 450 10 400 5 350 MNOK per Q MNOK per Q - Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 (5) 300 (10) 250 (15) 200 (20) (25) 150 EBT Revenue (moving average) 3 - one step ahead

  4. Slide 4: Financial statements Q4 2006

    Financial statements Q4 2006

  5. Slide 5: Overall improved results

    Overall improved results www.kitron.com „ Operating income MNOK 514.8 (MNOK 443.5) z 2006: MNOK 1 693.6 (MNOK 1 576.3) „ Stable gross profit 40.1% (39.5%) z 2006: 40.0% (40.3%) „ EBITDA MNOK 32.5 (MNOK -37.5) z 2006: MNOK 93.8 (MNOK -2.6) „ EBIT MNOK 23.9 (MNOK -44.7) z 2006: MNOK 64.4 (MNOK -35.4)

  6. Slide 6: Profit/(loss) account Q4 2006

    Profit/(loss) account Q4 2006 www.kitron.com Profit & loss (NOK million) Q4 2006 Q4 2005 31.12.2006 31.12.2005 Revenue 514,8 443,5 1 693,6 1 576,3 Cost of materials 308,3 268,4 1 015,7 941,2 Gross profit margin 40,1 % 39,5 % 40,0 % 40,3 % Payroll expenses 137,0 126,7 466,0 463,5 Other operational ex

  7. Slide 7: Increased equity and balance due to factoring

    Increased equity and balance due to factoring www.kitron.com „ Equity MNOK 185.7 (MNOK 144.5) z Equity ratio 19.4% (22.1%) „ Total balance MNOK 957.5 (MNOK 652.5) z New factoring scheme from Q4 2006 Æ showing both receivables and debt „ Inventory MNOK 282.9 (MNOK 242.5) z Increased activity level in

  8. Slide 8: Balance sheet

    Balance sheet Balance sheet (NOK million) www.kitron.com 31.12.2006 31.12.2005 Tangible fixed assets 123,5 112,4 Goodwill 19,1 18,5 Investment in shares 0,0 0,2 Deferred tax assets 20,0 20,0 Other receivables 2,9 3,9 Total fixed assets 165,6 155,0 Inventory 282,9 242,5 Accounts receivable and other

  9. Slide 9: Cash flow

    Cash flow www.kitron.com Cash flow statement (NOK million) Q4 2006 Q4 2005 31.12.2006 31.12.2005 Net cash flow from operational activities (*) 139,6 61,6 9,6 9,4 Net cash flow from investment activities -5,2 -28,1 -45,4 -39,5 Net cash flow from financing activities -10,9 58,4 -11,8 92,0 Change in ca

  10. Slide 10: Equity

    Equity www.kitron.com Changes in equity (NOK million) 31.12.2006 31.12.2005 Equity opening balance(*) 144,5 121,4 Profit/loss for the year 41,7 -58,9 Share issue 90,8 Change in minority interests -12,6 Other (**) -0,5 3,8 Equity closing balance 185,7 144,5 (*) Equity opening balance 2005 has been re

  11. Slide 11: Market development

    Market development

  12. Slide 12: Strong market in Q4

    Strong market in Q4 www.kitron.com „ Increased volumes and new orders primarily from current customers z 20 largest customers represent approximately 4/5 of revenues „ New production line for prototypes in Arendal commenced operation in Q4 z Another line to be established in Jönköping, Sweden in 200

  13. Slide 13: Order backlog by country

    www.kitron.com Country 31.12.2006 31.12.2005 Norway 718,2 538,9 Sweden 219,0 227,6 Lithuania (group external) 21,8 14,1 Total 959,0 780,5 13 - one step ahead

  14. Slide 14: Order backlog per segment

    Order backlog per segment www.kitron.com Defence/ Data/ Medical NOK million Marine Telecom equipment Industry Total Kitron AS (EMS) 283 100 170 101 654 Kitron AB (EMS) 104 - 45 21 170 UAB Kitron (EMS) 3 7 5 7 22 Microelectronics 2 79 4 28 113 Total 392 186 224 157 959 Percentage of total 40,9 19,4 2

  15. Slide 15: Defence/Marine

    Defence/Marine www.kitron.com „ Revenue recovers to higher level „ 2007 expected to be better than 2006 „ Well positioned for offset contracts related to Norwegian purchase of fighter aircrafts 15 - one step ahead

  16. Slide 16: Data/Telecom

    Data/Telecom www.kitron.com „ Market segment with stable and strong growth „ Considerable growth in Microelectronics in Sweden z Technology recognized in all segments z Infrastructure products: • Fiber optical components for use in ’triple play’ and professional usage • Increasing demand for radio t

  17. Slide 17: Medical equipment

    Medical equipment www.kitron.com „ Considerably increased activity „ General growth and good profitability in the segment „ Manufacturing of complete products (High Level Assembly) „ Customers want proximity to the manufacturer 17 - one step ahead

  18. Slide 18: Industry

    Industry www.kitron.com „ Significantly higher activity than in Q4 2005 „ Increased volumes for existing customers „ Assistance throughout the value chain, from design to system assembly and final test „ Some new customers in Q4 „ Microelectronics’ activity in Sweden significantly increased 18 - one

  19. Slide 19: Outlook

    Outlook

  20. Slide 20: Positive outlook

    Positive outlook www.kitron.com „ Market growth of 12% expected up to 2010 z Increased degree of outsourcing (expected to increase from 25% to 30 % by 2010) z Increased degree of product development – and prototype productions z New products z Increased volume in existing products „ Increased effici

  21. Slide 21: Kitron - One step ahead

    Kitron - One step ahead

Kitron — Q4 2006 Earnings Presentation on 6ix