Kitron Asa · OSL:KIT

Kitron Asa — Q2 2007 Earnings Presentation

24 slides from Kitron Asa's earnings presentation, Aug 16, 2007

  1. Slide 1: Interim report Q2 2007

    Interim report Q2 2007 Kitron ASA 16 August 2007 Jørgen Bredesen, CEO Erling Svela, CFO

  2. Slide 2: Strong growth – increasing capacity

    Strong growth – increasing capacity „ Strong revenue growth of 29% „ Improved profitability „ NOK 53.4 million positive cash flow from operations z Profit and reduced inventory „ Order intake stable „ Revenue growth exceeds market growth z Gaining market share z Growing more than peer group „ Invest

  3. Slide 3: Turnaround to profitable growth

    Turnaround to profitable growth „ Moving average revenue per quarter, quarterly EBT 35 500 30 Revenue (moving average) NOK million per Q 450 25 20 400 EBT NOK million per Q 15 350 10 5 300 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 250 (5) 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006

  4. Slide 4: Events in Q2

    Events in Q2 Announced orders „ Kitron Microelectronics automotive order in UK: NOK 35 million over three years „ Kitron AS order from Kongsberg Defence & Aerospace (Defence Communication); Military Radio Link (RL) and other communication products: NOK 35 million „ Kitron Microelectronics: Strategic

  5. Slide 5: Interim financial statements Q2 2007

    Interim financial statements Q2 2007

  6. Slide 6: Improved operating result

    Improved operating result „ Revenue grew 29%, to MNOK 510.5 (MNOK 395.2) „ Reduced gross margin 39.1% (40.7%) z Up from 37.7% in first quarter 2007 z Variations caused by product mix changes „ EBITDA strongly improved, to MNOK 34.3 (MNOK 12.6) „ EBIT MNOK 26.4 (MNOK 5.7) „ Net financial costs MNOK 5

  7. Slide 7: Profit/(loss) statement Q2 2007

    Profit/(loss) statement Q2 2007 7 - one step ahead

  8. Slide 8: Higher activity level reflected in the balance sheet

    Higher activity level reflected in the balance sheet „ Total balance sheet MNOK 913.9 (MNOK 668.5) z Reflecting higher activity level z Conventional factoring scheme implemented in Q4 2006 adds receivables and debt „ Inventory reduced to MNOK 272.2 (MNOK 282.2) „ Available liquidity MNOK 89.5 (MNOK

  9. Slide 9: Assets

    Assets „ Inventory decreased, achieving 7.3 inventory turns „ Trade debtors and other receivables reflecting conventional factoring „ Cash and bank stable, reduced overdraft, available liquidity increased „ Deferred tax assets retained at MNOK 20.0 (MNOK 20.0) 9 - one step ahead

  10. Slide 10: Equity and liabilities

    Equity and liabilities „ Equity has increased by MNOK 59.7 because of profitable operations „ Equity ratio stable at 23.7% (23.5%) because balance sheet has been inflated by conventional factoring scheme implemented in Q4 2006 „ Interest-bearing debt has grown to MNOK 308.1 (MNOK 135.6), for the sam

  11. Slide 11: Cash flow

    Cash flow „ Positive cash flow from operational activities due to profit and reduced inventory „ Replacement and upgrade investments continue at a level above depreciation „ Available liquidity increased to MNOK 89.5 (MNOK 42.5) 11 - one step ahead

  12. Slide 12: Market comments

    Market comments

  13. Slide 13: Continued growth

    Continued growth „ Increased volume primarily from current customers „ Industrial EMS market grows more than electronics market „ ETP “The Worldwide EMS Market” 4thed 2007 estimates 15 per cent per year until 2011 „ Kitron assumes the total relevant market will grow 9-12 per cent „ Kitron has gained

  14. Slide 14: Manufacturing capacity increased to satisfy order intake

    Manufacturing capacity increased to satisfy order intake 600 000 500 000 400 000 300 000 200 000 100 000 - Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Order intake Revenue 14 - one step ahead

  15. Slide 15: Order backlog remains at about 6 mths’ revenue

    Order backlog remains at about 6 mths’ revenue Backlog per country 30.06.2007 30.06.2006 Norway 663 659 Sweden 195 236 Lithuania (externally) 29 13 Total 887 908 15 - one step ahead

  16. Slide 16: Order backlog per segment

    Order backlog per segment „ Order backlog includes z All firm orders z Four months’ customer forecast 16 - one step ahead

  17. Slide 17: Defence/Marine

    Defence/Marine „ Revenue at higher levels than in 2006 „ Expected growth the coming years „ Well positioned for important offset contracts „ Q2: Military Radio Link and other military communications equipment order from Kongsberg Defence and Aerospace, NOK 35 million 17 - one step ahead

  18. Slide 18: Medical equipment

    Medical equipment „ Stable activity „ Good profitability in the segment „ Orders to assembly line in Horten have been rescheduled „ Good prospects for new business 18 - one step ahead

  19. Slide 19: Data/Telecom

    Data/Telecom „ Strong growth „ Kitron demonstrates ability to execute quick and timely deliveries „ Microelectronics holds a strong position in the segment z Q2: Received order for more than half a million transponders for a project in continental Europe 19 - one step ahead

  20. Slide 20: Industry

    Industry „ Continuing growth „ Increased production on existing products „ Kitron is gaining ground in the automotive industry „ Growing revenue from major Swedish industrials, interesting prospects for additional business 20 - one step ahead

  21. Slide 21: Outlook

    Outlook

  22. Slide 22: Full speed ahead

    Full speed ahead „ Market growth expected to last for several years „ Strategic intent to grow 15% annually (organic growth) z Substantial potential in Sweden z Expanding capacity in Lithuania z Position in Norway strengthened „ Investment in new capacity and equipment upgrades „ Continuous attentio

  23. Slide 23: Questions?

    „ Questions? 23 - one step ahead

  24. Slide 24: Kitron - One step ahead

    Kitron - One step ahead

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