Kitron Asa · OSL:KIT
Kitron Asa — Q2 2020 Earnings Presentation
15 slides from Kitron Asa's earnings presentation, Jul 10, 2020
Slide 1: First half year and Q2 results 2020
First half year and Q2 results 2020 Peter Nilsson, CEO Cathrin Nylander, CFO 2020-07-10 1
Slide 2: Record performance
Record performance NOK Million Q2 2020 vs Q2 2019 NOK Million 2020 vs 2019 Revenue 1 040.8 21.0 % Revenue 1 918.4 14.7 % EBIT 88.0 55.8 % EBIT 146.3 35.9 % Order Backlog 2 101.8 44.6 % Order Backlog 2 101.8 44.6 % Operating cash flow 5.5 -89.7 % Operating cash flow 108.0 36.9 % Net w
Slide 3: Highlights and important events
Highlights and important events ▪ Revenue growth 21 % in Q2: Defence/Aerospace and Medical devices very strong ▪ EBIT margin 8.5% (6.6%): Strong overall performance. On track for 2020 full year target. ▪ EPS NOK 0.36 (0.20): 80% increase and in line with revenue and profitability improvements. First
Slide 4: Important orders in the quarter
Important orders in the quarter ▪ Northrop Grumman Awards Contracts to Kitron o Production of Integrated Communications, Navigation and Identification (ICNI) modules for the F-35 Lightning II program o Deliveries will secure a backlog into 2021 and have a total value of more than USD 18 million. o T
Slide 5: Financials
Financials 5
Slide 6: Very strong revenue growth in Defence/Aerospace, Industry and Medical devices sectors
Very strong revenue growth in Defence/Aerospace, Industry and Medical devices sectors 1 041 860 889 878 738 NOK MILLION 21,0% Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q2 2020 vs Q2 2019 Share of total revenue Q2 2020 vs Q2 2019 Share of total revenue Industry Norway 435.0 29.3 % 41.8 % 235.2 7.2 %
Slide 7: Improved profits and profitability
Improved profits and profitability ▪ Record Q2 EBIT ▪ EBIT driven by profitable growth ▪ EBIT margin improved from 6.6% to 8.5% 88.0 56.4 58.4 51.2 54.2 NOK Million 45.0 42.3 39.6 30.0 95.3 % Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Margin 6.8 % 5.3 % 5.7 % 6.3 % 6.6 %
Slide 8: Q2 EBIT by country: Improved profits and profitability
Q2 EBIT by country: Improved profits and profitability EBIT ▪ Norway and Sweden at target margin 39.4 levels and with improved profitability. o Norway a substantial profitability and 23.9 profit improvement 23.4 16.3 o Sweden improving profitability NOK Million 13.2 12.4 11.9 8.2 ▪ CEE (Poland 6.4 %
Slide 9: Balance sheet: Working capital efficiency improvement
Balance sheet: Working capital efficiency improvement Net working capital ▪ Working capital ratios o NOWC* 24.5% (27.4%) 1 059 o Cash conversion cycle* 93 (102) 1 013 o ROOC* 22.1% (16.7%) NOK Million 933 942 • exclusive IFRS16 ROOC% 24.1% 887 13,5 % ▪ Cash flow Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-20
Slide 10: Market development
Market development 10
Slide 11: Strong order backlog
Strong order backlog - Particularly strong growth in Defence/Aerospace and Medical devices - Growth 45%, underlying growth 36% Q2 2020 vs Q2 2019 Share of total revenue Industry 450.9 24.9 % 21.5 % Order Backlog Defence/Aerospace 832.3 23.4 % 39.6 % 2 064 2 102 1 884 Medical devices 444.1 154.6
Slide 12: Outlook
Outlook 12
Slide 13: Outlook
Outlook ▪ For 2020, Kitron has previously indicated a revenue outlook of between NOK 3 300 and 3 700 million and EBIT margin between 6.4 to 7.0 percent. ▪ Due to increased growth primarily the Defence/Aerospace, Industry and Medical devices sectors, overall profitability improvement and favorable cu
Slide 14: Key takeaways
Key takeaways Summary Q2 2020 ▪ Strong growth in order backlog ▪ Record Q2 revenue and half year ▪ Increased margins ▪ Outlook updated 14
Slide 15: Thank You!
Thank You! 15