Kitron Asa · OSL:KIT
Kitron Asa — Q2 2012 Earnings Presentation
18 slides from Kitron Asa's earnings presentation, Jul 24, 2012
Slide 1: Q2 results 2012
Q2 results 2012 24 July 2012 Jørgen Bredesen, CEO Björn Wigström, CFO
Slide 2: Strong development in Offshore
Strong development in Offshore Financial highlights for Q2 (vs Q2 2011) • Offshore segment drives top line growth • Order intake increased by 12.2 per cent and order backlog increased by 5.4 per cent. • Activity level in line with last year. Revenue reached NOK 416.4 million. • EBIT at NOK 10.6 mill
Slide 3: Operational highlights
Operational highlights • Restructuring of Sweden concluded • Negotiations with employees and customers finalized. • Closing Karlskoga by the end of the year and consolidating the Swedish operation in Jönköping. • The close down cost was fully provided for in 2011 • Start up entities ramping up • Inc
Slide 4: Major new orders in Q2
Major new orders in Q2 • Offshore order amounting to NOK 44 mill secured from a leading company within the offshore industry. The orders are for delivery during first and second quarter of 2013. • Defence order for manufacturing of military communication equipment amounting to NOK 37 million from Ko
Slide 5: Financial statements Q2 2012
Financial statements Q2 2012
Slide 6: Strong recovery in Offshore
Revenue Group Strong recovery in Offshore • Revenue at NOK 416.4 million, 3.3 per cent lower than Q2 2011. • Q2 change by market segment (Q2 2012 vs Q2 2011): Defence/Aerospace -21.3 % Energy/Telecoms -4.1 % Industry -8.2 % Medical -17.5 % Offshore/Marine 85.9 % Revenue by market segment • Defence/A
Slide 7: Revenue by country
Revenue by country * Revenue by country NOK million • Norway 8.7% lower – Mainly due to drop in Energy/Telecoms and short term lower demand from Norwegian Defence customers. • Sweden up by 20.3% - Demand in the Swedish industrial segment remains strong. Revenue by country Total revenue NOK 416 milli
Slide 8: Profitability somewhat lower
Operating profit Group Profitability somewhat lower • Operating profit NOK 10.6 million (NOK 13.8 million) and the operating margin was 2.5 per cent. • Adjusted for start-up costs and restructuring provision EBIT was NOK 16 million and the EBIT margin Operating margin Group was 3.8 per cent. • NOK 5
Slide 9: Profitability by country
Operating profit by country * Profitability by country • Norway – Positive change in revenue mix and growth in higher margin segments • Sweden – Strong top line development and positive effects of restructuring. Operating margin by country* • Lithuania – Lower revenue cause drop in margin, however s
Slide 10: Operating cash flow and net working capital
Operating cash flow Group Net working capital on a high level • Cash flow was negative by NOK 16.1 million (NOK 32.4 million) in the quarter. • Net working capital remains on a (too) high level. Net working capital Group • Partly explained by high receivable level in June. • Inventory turnover not s
Slide 11: Stable equity level
Equity Stable equity level • Equity of NOK 447.2 million (427.3 million) and equity ratio of 42.1% (42.1%) • Working capital focus to Equity ratio increase equity ratio 11
Slide 12: Market development
Your ambition. Our passion. < Kitron Market development
Slide 13: Market development
Market development • Defence/Aerospace • Lower demand in the short to medium term • Long term outlook remains promising with several major programs secured that are expected to ramp up • Energy/Telecoms • Competitive market segment with strong price pressure. • Lower demand in metering business • In
Slide 14: Market development
Market development • Medical equipment • Mixed trend by customer account • Overall segment fundamentals remain positive and continued growth expected • Offshore/Marine • A continued positive trend in Offshore expected • Kitron expect growth above segment average based on customer projections 14
Slide 15: Order backlog trend
Order backlog Group Order backlog trend • Order backlog strengthening due to positive trend in Offshore • Solid portfolio of contracts in Offshore/Marine and Defence/Aerospace (only partly Order backlog Segment booked to the backlog) • Stable backlog trend forecasted: • Strong positive trend in Offs
Slide 16: Outlook
Outlook
Slide 17: Outlook
Outlook • Overall a stable market trend expected • Kitron believe in a stable turnover and improved profitability in 2012 compared with 2011: • Focus on manufacturing efficiency and global sourcing remains a priority area • Restructuring in Sweden expected to have a positive impact on profitability
Slide 18: Thank you!
Thank you! 18