Kitron Asa · OSL:KIT
Kitron Asa — Q1 2009 Earnings Presentation
10 slides from Kitron Asa's earnings presentation, May 7, 2009
Slide 1: Q1 results 2009
Q1 results 2009 7 May 2009 Jørgen Bredesen, CEO Björn Wigström, CFO Strong cash generation Financial highlights in Q1 • Excellent cash flow • Revenue growth of 15.4% • Operating profit increase by 33.4% • Decline in order intake and backlog 2 1
Slide 2: Operational highlights in Q1: Capacity adjustments
Capacity adjustments Operational highlights in Q1 • Activity level high in Q1 but customers signal lower demand • Capacity adjustments ongoing. Downsizing with 60 FTEs in Q1 • Continued focus on operational improvements: • Manufacturing efficiency programme rolled out in Sweden and Norway • Positive
Slide 3: Revenue Group and Revenue by country
Revenue Group Revenue growth 720 677.4 613.3 600 571.2 • Revenue reached NOK 571.2 million 495.0 483.6 480 NOK million which represents a 15.4% increase 360 compared to Q1 2008 240 120 • Strong growth within Defence/Offshore 0 and growth in Data/Telecom Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Revenu
Slide 4: Revenue mix impact gross margin; Improved operating profit
Revenue mix impact gross margin • Gross margin is down from 39.8 % Gross margin Group in Q1 2008 to 37.5 % in Q1 2009. 42,0 % 39,8 % 39,5 % 40,0 % 38,8 % • This is due to different revenue 38,0 % 37,3 % 37,5 % mix and not a margin performance Per cent 36,0 % issue: 34,0 % • Lower sales of Developmen
Slide 5: Operating profit by country; Strong operating cash flow
Operating profit by country 25.0 Profit by country 20.0 22.1 15.0 NOK million 12.1 • Norway (Arendal) and 10.0 9.8 11.2 Q1 2008 Q1 2009 Lithuania deliver a solid profit 5.0 1.3 • Slow start in Sweden but - (1.2) (5.0) improvements expected Norway Sweden Lithuania following capacity Operating margin
Slide 6: Equity ratio above 40%
Equity ratio above 40% 600 • Equity of NOK 478.9 million Equity 500 480.4 478.9 (262.5) and the equity ratio to 400.4 40.8% (26.8%) 400 NOK million 303.1 300 262.5 • Mainly driven by the working 200 capital improvement. 100 • Positive net profit offset by Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 nega
Slide 7: Continued strong activity in Q1; Order intake down
Continued strong activity in Q1 • Revenue trend driven by strong trend in Defence/Offshore. • Drop in demand from Offshore. • Mixed trend in Data/Telecom but video projection positive. • Customers in Medical equipment adjusting inventory level. • Industry segment most affected by the crisis 260 Reve
Slide 8: Order backlog signals reduction in activity level
Order backlog signals reduction in activity level Order backlog Group • Order backlog at NOK 732 1100 1006 1100 1000 994 971 million (NOK 994 million). 900 • Backlog reduced across all NOK million 800 732 700 segments. 600 • Sharp drop for Offshore 500 400 during Q1. Q1 2008 Q2 2008 Q3 2008 Q4 2008
Slide 9: Safeguarding competitive edge and profitability; 2009 Outlook
Safeguarding competitive edge and profitability • Kitron to reduce work force by 370 FTE’s in 2009 • Productivity improvements • 15% drop in revenue outlook • Reduction of cost by NOK 60 million in 2009 (excl material) • Annualised NOK 135 million in cost reduction • Accelerate operational improveme
Slide 10: Our solutions deliver success! Kitron
‘Our solutions deliver auccoss! 4 Kitron 10