Kitron Asa · OSL:KIT

Kitron Asa — Q4 2005 Earnings Presentation

18 slides from Kitron Asa's earnings presentation, Feb 9, 2006

  1. Slide 1: Quarterly presentation Q4 and preliminary annual accounts 2005

    Quarterly presentation Q4 and preliminary annual accounts 2005 Kitron ASA 9 February 2006

  2. Slide 2: Restructuring strengthens operations

    Restructuring strengthens operations www.kitron.com „ Operating income lower than in fourth quarter 2004 „ Realised cost reductions with good margins „ Decided further cost reductions (Oct. 2005) „ Strengthened order backlog through increased order intake „ Increased gross margins „ Earnings before

  3. Slide 3: Realised lower cost base

    Realised lower cost base www.kitron.com „ Cost reductions of MNOK 23.6 in Q4 z Salaries: MNOK 14.4 z Other operational costs: MNOK 9.2 „ Total cost reductions in 2005 at MNOK 88.6, compared to target for the year at MNOK 70 z Salaries: MNOK 64.7 z Other operational costs: MNOK 23.9 3 - one step ahea

  4. Slide 4: Status on decided cost reductions

    Status on decided cost reductions www.kitron.com „ Termination of the production unit in Oslo is expected to give annual savings of MNOK 29 z Reduced salaries MNOK 15.0 z Reduced other operations costs MNOK 14.0 z Progress as planned – production terminated from Q1 z Full effect from second quarter

  5. Slide 5: Financial information Q4 2005

    Financial information Q4 2005

  6. Slide 6: Highlights Q4

    Highlights Q4 www.kitron.com „ Lower activity – operating income MNOK 443.5 (MNOK 461.1) „ Strengthened gross margins 39.5% (38.9%) „ EBITDA MNOK -37.5 (MNOK -7.1) „ EBIT MNOK -44.7 (MNOK -18.5) „ Strong cash flow from operations MNOK 62.3 (MNOK 82.5) „ Pre-tax result impacted by one-off costs: MNOK

  7. Slide 7: Profit and loss Q4 2005

    Profit and loss Q4 2005 www.kitron.com Profit and loss ( NOK mill) Q4 2005 Q4 2004 31.12.05 31.12.04 Operating income 443,5 461,1 1 576,3 1 748,0 Cost of material 268,4 281,6 941,2 1 062,1 Gross profit margin 39,5 % 38,9 % 40,3 % 39,2 % Payroll expenses 126,7 141,2 463,5 528,2 Other operational expe

  8. Slide 8: Highlights – balance sheet

    Highlights – balance sheet www.kitron.com „ Total balance sheet of NOK 652.5 mill (2004: NOK 610.8 mill) „ Equity NOK 151.1 mill (NOK 128.1 mill) z Equity of 23.2% „ Capital tied up in inventory NOK 242.5 mill (2004: NOK 246.4 mill) „ Accounts receivable of NOK 90.4 mill (2004: NOK 130.8 mill) z Sal

  9. Slide 9: Balance sheet – Assets

    Balance sheet – Assets www.kitron.com Balance sheet (NOK mill) 31.12.05 31.12.04 Deferred tax credits 20,0 20,0 Other intangible fixed assets 18,5 20,6 Fixed assets 112,4 120,6 Financial assets 4,0 8,5 Total fixed assets 155,0 169,7 Inventory 242,5 246,4 Accounts receivable 90,4 130,8 Receivable 51,

  10. Slide 10: Balance sheet – liabilities and shareholders’ equity

    Balance sheet – liabilities and shareholders’ equity www.kitron.com Liabilities and shareholders' equity 31.12.05 31.12.04 Paid-in equity 151,1 115,5 Retained earnings - Minority interests - 12,6 Total shareholders' equity 151,1 128,1 Pension commitments 14,9 31,5 Provision for liabilities and charg

  11. Slide 11: Cash flow and shareholders’ equity

    Cash flow and shareholders’ equity www.kitron.com Cash flow statement (NOK mill) Q4 2005 Q4 2004 31.12.05 31.12.04 Net cash flow from operational activities 62,3 82,5 6,8 (33,0) Net cash flow from investment activities (29,1) (14,3) (40,5) (23,7) Net cash flow from financing activities 49,0 (59,9) 1

  12. Slide 12: Market developments

    Market developments

  13. Slide 13: www.kitron.com - one step ahead

    www.kitron.com 13 - one step ahead

  14. Slide 14: The market in Q4

    The market in Q4 www.kitron.com „ Limited growth in Nordic EMS market z Limited access to new products with large volumes z Swedish growth – Kitron’s structure expected to increase market share z Time consuming introductory sale „ Increased interest for outsourcing of more stages in the manufacturin

  15. Slide 15: Full delivery range even more important

    Full delivery range even more important www.kitron.com „ Expect growth in demands for products requiring large proportions of know how in the EMS-market z Often low-volume products z Kitron’s core business „ Increased focus on High Level Assembly z Kitron active in all stages of the value chain „ Gr

  16. Slide 16: Prospects

    Prospects

  17. Slide 17: Focus on profitability

    Focus on profitability www.kitron.com „ Realised lower cost base z Increased flexibility in reference to changing markets „ Decided further cost reductions (Oct 2005) z Progress as planned „ Positive development in order backlog z Norway and Sweden will remain main markets z Expected positive develo

  18. Slide 18: Kitron - One step ahead

    Kitron - One step ahead

Kitron — Q4 2005 Earnings Presentation on 6ix