Kitron Asa · OSL:KIT
Kitron Asa — Q4 2020 Earnings Presentation
15 slides from Kitron Asa's earnings presentation, Feb 11, 2021
Slide 1: Full year and Q4 results 2020
Full year and Q4 results 2020 Peter Nilsson, CEO Cathrin Nylander, CFO 2021-02-11 1
Slide 2: Strong finish to an exceptional year
Strong finish to an exceptional year NOK Million Q4 2020 vs Q4 2019 NOK Million 2020 vs 2019 Revenue 991.6 11.6 % Revenue 3 963.9 20.1 % EBIT 75.7 39.6 % EBIT 312.6 55.1 % Order Backlog 2 005.5 6.5 % Order Backlog 2 005.5 6.5 % Operating cash flow 132.2 36.0 % Operating cash flow 237.0
Slide 3: Highlights and important events
Highlights and important events ▪ Revenue growth 12 % in Q4: Strong growth in Industry. Medical devices volumes normalized. ▪ EBIT margin 7.6% (6.1%): Strong over all performance in Q4 ▪ EPS NOK 0.26 (0.19) +36% - Full year 2020 EPS: 1.19 (0.74) +61% ▪ Order backlog growth 6%: strong growth in Indus
Slide 4: Important agreements in the fourth quarter
Major new orders: Important agreements in the fourth quarter KONGSBERG awarded orders to Kitron ▪ In November, Kitron received order from 20 million from Kongsberg Defence & Aerospace AS with a value of over MNOK 20. ▪ Production of RL542A, a core component in the new Flexible High Capacity Radio Li
Slide 5: Financials
Financials 5
Slide 6: Industry sector shows strong growth
Industry sector shows strong growth Q4 2020 vs Q4 2019 Share of total revenue Q4 2020 vs Q4 2019 Share of total revenue Industry Norway 52.9 % 49.3 % 16.4 % 28.6 % 488.5 283.6 Defence/Aerospace Sweden -7.0 % 23.6 % 3.5 % 17.3 % 234.0 171.3 Medical devices -4.3 % 17.4 % CEE 172.8 37.7 % 4
Slide 7: Outstanding full year results
Outstanding full year results ▪ Q4 EBIT strong improvement compared to last year ▪ EBIT driven by over all strong performance, ▪ Economies of scale and exceptional utilization of overhead Q2/Q3 88.0 90.5 75.7 56.4 58.4 NOK Million 51.2 54.2 42.3 39.6 34.3 % Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1
Slide 8: Q4 EBIT by country: Improved profits and profitability
Q4 EBIT by country: Improved profits and profitability ▪ Norway and Sweden at strong margin levels and with improved profits ▪ CEE (Lithuania and Poland) ended at solid profitability levels ▪ Others (China and US) in total below strategic levels doe to weak 4Q. Norway Sweden CEE Others 7.5 % 6.9 % 9
Slide 9: Balance sheet: Working capital efficiency improvement
Balance sheet: Working capital efficiency improvement Net working capital ▪ Working capital ratios 1 133 o NOWC* 26.3% (26.3%) 1 013 1 058 1 063 942 o Cash conversion cycle* 98 (102) NOK Million o ROOC* 18.9% (14.8%) 12.9 % • exclusive IFRS16 ROOC% 21.3% Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 ▪ Cas
Slide 10: Market development
Market development 10
Slide 11: Strong order backlog
Strong order backlog - Particularly strong growth in Industry and Energy/Telecom Q4 2020 vs Q4 2019 Share of total revenue Industry 28.5 % 31.4 % Order Backlog 629.1 Defence/Aerospace -9.4 % 38.3 % 768.8 2 102 2 064 Medical devices 11.1 % 11.7 % 2 006 234.5 NOK million Energy/Telecoms 42.2 %
Slide 12: Outlook
Outlook 12
Slide 13: Outlook
Outlook ▪ For 2021, Kitron expects revenue between NOK 3 900 and 4 200 million. EBIT margin is expected to be between 6.8 and 7.4 per cent. ▪ The outlook for 2021 implies that Kitron is back on its long term trajectory for revenue and profitability after exceptional growth in 2020, largely driven by
Slide 14: Key takeaways
Key takeaways Summary Q4 2020 ▪ Outstanding full-year results ▪ Kitron is back on its long term trajectory for revenue and profitability ▪ Proposed dividend of NOK 0.70 per share ▪ Capital Markets Day 17 March ( webcast) 14
Slide 15: Thank You!
Thank You! 15