Kitron Asa · OSL:KIT
Kitron Asa — Q3 2010 Earnings Presentation
9 slides from Kitron Asa's earnings presentation, Nov 10, 2010
Slide 1: Q3 results 2010: Increased revenue and profit in Q3
Q3 results 2010 10 November 2010 Jørgen Bredesen, CEO Björn Wigström, CFO Increased revenue and profit in Q3 Financial highlights • Order backlog increased by 9% vs Q3 2009 • Activity level improving, revenue up by 4.8% vs Q3 2009 • Positive profitability trend, operating margin at 3.2% • Karlskoga
Slide 2: Slow recovery due to component situation
Slow recovery due to component situation Operational highlights • Recovery slowed by component shortage • Loss of Data/ Telecoms client. Production will continue until end of March 2011, and will impact annual turnover of about NOK 100 million • Stepping up initiatives to transfer manufacturing to l
Slide 3: Financial statements Q3 2010: Positive revenue development
Financial statements Q3 2010 Revenue Group Positive revenue development 424 411 426 352 336 • Revenue at NOK 352 million, a growth of 4.8% vs Q3 2009 NOK million • Q3 change by market segment: Q3 2010 vs Q3 2009 Data/Telecoms -20.4% Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Defence 29.7% Industry 24.7
Slide 4: Revenue by country; Increased operating profit
Revenue by country * Revenue by country • Revenue growth across all entities: NOK million • Norway 6% higher - Mixed trends with slow development in Offshore and strong trend in Medical Equipment and Industry • Sweden 3% higher – Strong recovery Revenue by country Total revenue NOK 352 million in th
Slide 5: Profit by country; Negative operating cash flow
Operating profit by country * Profit by country 9,9 • Mixed performance 5,2 NOK million Q3 2009 2,7 Q3 2010 • Norway and Lithuania show better 0,9 performance driven by revenue (0,8) recovery and cost base focus. (2,1) Norway Sweden Lithuania • Sweden mixed Operating margin by country 7,5 % • Kitron
Slide 6: Solid equity ratio
Solid equity ratio • Equity of NOK 444.7 million Equity (445.1) and equity ratio of 44.1% 445,1 450,4 443,5 438,8 444,7 (47.2%) • Among the strongest in the EMS industry NOK million Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Equity ratio 47.2% 45.9% 45.7% 44.1% 44.1% 11 Market development 6
Slide 7: Challenging markets, but positive signs; Order backlog at higher level
Challenging markets, but positive signs • Data/Telecoms mixed - lost a client but strong growth with others • Defence trend positive – several long term contracts secured • Industry continue strong recovery but from a low level • Medical equipment positive trend continues • Offshore at a lower level
Slide 8: Expanding market coverage
Expanding market coverage Update on establishment of new entities – overall implementation on track: • German operation fully integrated and operational • Strong market interest • China establishment on plan and key positions recruited • Factory expected to be operational in Q1 2011 • US establishme
Slide 9: Outlook; Thank you!
Outlook • Market recovery expected to continue • Slow growth partly due to the difficult component situation • Cost base adjustments expected to yield positive effect on profitability • Continued focus on operational improvements (supply chain management, ERP etc.) • Operational adjustments to secur