Kitron Asa · OSL:KIT
Kitron Asa — Q4 2023 Earnings Presentation
14 slides from Kitron Asa's earnings presentation, Feb 14, 2024
Slide 1: 2023 Q4 Presentation
2023 Q4 Presentation Kitron Group | 2024-02-14
Slide 2: Fourth quarter 2023 Highlights
Fourth quarter 2023 Highlights ▪ Revenue: 199.1 +14.1% (174.6) ▪ EBIT: 18.0, +13.5% (15.9) ▪ EBIT margin: 9.1% (9.1%) ▪ ROOC: 26.9% (27.0%) ▪ Cash Cycle Conversion days: 95 (100) ▪ NIBD: 129.4 (154.8) ▪ NIBD/EBITDA 1.5 (2.6) ▪ Net Gearing: 0.7 (1.1) ▪ Equity %: 31.6% (25.6%) ▪ Order Backlog: 493.6,
Slide 3: YTD 2023 Highlights
YTD 2023 Highlights ▪ Revenue (€M): 775.2, +21% (641.0) ▪ EBIT (€M): 70.7, +56% (45.2) ▪ EBIT margin: 9.1% (7.1%) ▪ Net Income (€M): 51.1, +81% (28.3) ▪ Net margin: 6.6 % (4.4%) ▪ Cash Flow YTD (€M): 59.0 (18.2) ▪ Investments YTD (€M): 16.3 (9.6)* ▪ EPS (EUR): 0.258, +78 % (0.145) ▪ Proposed dividen
Slide 4: Fourth quarter trends
Fourth quarter trends Sector trends ▪ Electrification sector: Energy grids and high voltage transmission show strength. ▪ Defense sector – solid growth and outlook. ▪ Connectivity & Industry sectors: Growth slowing or flattening out. Regional trends ▪ Continued growth in Nordics and U.S. with Defens
Slide 5: Order backlog
Order backlog ▪ Order backlog: 493.6 €M, -15% (580.2 €M) year-over year. ▪ Exceptional strength in the Defence/Aerospace sectors and critical electrical grid infrastructure. ▪ Other sectors – Shorter customer horizon on order placement reflecting the current market sentiment, reduction in lead-times
Slide 6: R06 and R12 Forward demand
R06 and R12 Forward demand ▪ Rolling six-month outlook 386 €M o R06 demand relevant considering shorter demand horizon from customers o R06 demand decreases to 386 €M from 426 €M from last quarter ▪ Rolling twelve-month outlook 670€M o R12 demand decreases to 670 €M from 747 €M from last quarter. Th
Slide 7: Currency and growth
Currency and growth ▪ Revenue growth in €M of 14.0% in Q4 and 20.9% YTD. ▪ Waterfalls describe underlying growth and currency effects in MNOK vs €M. ▪ EUR Rate AVE: o Q4 NOK 11.65 o Q3 NOK 11.40 o Q2 NOK 11.66 o Q1 NOK 11.00 7
Slide 8: Business sectors
Business sectors ▪ Strong growth in Nordics and CEE and improved profits overall. ▪ EBIT margin increased from 7.1 % to 9.1%. ▪ All sites continue to be profitable. Revenue Business Sectors Q4 2023 Q4 2022 Change 31.12.2023 31.12.2022 Change Full year 2022 Nordics 86.3 69.8 16.5 304.9 247.8 57.1 247
Slide 9: Cash flow and working capital
Cash flow and working capital €M Cash Flow * Q4 2023 Q4 2022 Change 31.12.2023 31.12.2022 Profit before tax 16.9 14.6 2.3 64.7 38.6 ▪ Q4 Cash flow from operating activities Depreciations Change in inventory, accounts receivable, 4.8 3.7 1.1 17.6 16.0 at 33.4 €M (7.3 €M). contract assets and accounts
Slide 10: Ratios
Ratios €M Ratios 31.12.2023 31.12.2022 Change 31.12.2022 R3 NWC % sales 24.4 % 26.1 % -1.7 % 26.1 % R3 ROOC % sales 26.9 % 27.0 % -0.1 % 27.0 % ▪ Net gearing and NIBD/EBITDA 0.71 and 1.5 R3 Cash Cycle Conversion 95 100 -5 100 ▪ Strong earnings per share development +24% Net Interest bearing debt €M
Slide 11: Outlook full-year 2024
Outlook full-year 2024 We maintain 2024 outlook presented on Capital Markets Presentation in December 2023 Our current outlook: ▪ For 2024, Kitron expects revenues between 700 and 800 EUR million with an operating profit (EBIT) between 60 and 74 EUR million. 11
Slide 12: Key take-ways
Key take-ways ▪ Fourth quarter delivered a strong finish of a double- digit growth year. ▪ Record performance for Revenue, EBIT, Margins, Earnings and Cash flow. ▪ Continued growth in Nordics and U.S. driven by Defense and specific product segments of Electrification. ▪ There's a noticeable decelera
Slide 13: Q&A
Q&A
Slide 14: Appendix: Definition of alternative performance measures
Appendix: Definition of alternative performance measures Order backlog Return on capital employed (ROCE) Cash conversion cycle (CCC) All firm orders and 4 months of committed customers forecast at EBIT/(Total assets - short term debt) Days of inventory outstanding + Days of receivables outstanding –