Kitron Asa · OSL:KIT
Kitron Asa — Q2 2023 Earnings Presentation
15 slides from Kitron Asa's earnings presentation, Jul 13, 2023
Slide 1: 2023 Q2 Presentation
2023 Q2 Presentation Kitron Group | 2023-07-13
Slide 2: Second quarter 2023 Highlights
Second quarter 2023 Highlights ▪ Revenue (€M): 206 +31% (157) ▪ EBIT (€M): 19.2, +93% (9.9) ▪ EBIT margin: 9.3% (6.3%) ▪ Net margin: 7.6 % (4.2%) ▪ Cash Flow: 9.0 €M (4.0 €M) ▪ ROOC: 28.2% (11.5%) ▪ Cash Cycle Conversion days: 84 (108) ▪ NIBD/EBITDA: 1.8 (3.6) ▪ Order Backlog (€M): 535, +13.5% (471)
Slide 3: Half year 2023 Highlights
Half year 2023 Highlights ▪ Revenue (€M): 397 +32% (301) ▪ EBIT (€M): 36.5, +107% (17.6) ▪ EBIT margin: 9.2% (5.8%) ▪ Net margin: 7.3 % (3.7%) ▪ Cash Flow: 19.4 €M (-6.9 €M) ▪ ROOC: 28.2% (11.5%) ▪ Cash Cycle Conversion days: 84 (108) ▪ NIBD/EBITDA: 1.8 (3.6) ▪ Order Backlog (€M): 535, +13.5% (471)
Slide 4: Second quarter trends
Second quarter trends Revenue per sector €M Sector trends 64 63 47 Q2 22 ▪ Energy efficiency, Energy grids, and EV charging will 38 36 33 Q2 23 26 continue with strong growth and many new 20 18 19 opportunities in 2023 and 2024. Connectivity Electrification Industry Medical devices Defence/Aerospace
Slide 5: Order backlog
Order backlog ▪ The growth is driven by products focused on automation, mobility, and autonomy in the Electrification, Industry, and Defense sectors. Order backlog €M ▪ Overall order horizon shrinking as component lead times improve. 193 ▪ Order backlog: 535 €M, +13.5% (471 €M) 166 ▪ Strong progress
Slide 6: R12 Forward demand
R12 Forward demand ▪ Global megatrends driving demand. o Electrification, sustainable energy, automation and defense R12 Forward Demand (M€) show strong growth above 60%. July 1, 2023 ▪ Lead times and order horizons reducing. o We expect electronic component demand and supply to be 259 more balanced
Slide 7: Operations
Operations Capacity ▪ 2023 Capacity investments in existing facilities are nearing completion. ▪ New production facility is being built to increase New facility Czech. Operational Q4 2023. capacity and offering from the current adjacent Czech facility. Phase 1: 4000m2, Focus on box build. ▪ New faci
Slide 8: Currency and growth
Currency and growth ▪ Revenue growth in €M of 31% in Q2 and 32% YTD. ▪ Waterfalls describe underlying growth and 38 % -7 % 31 % 37 % -5 % 32 % currency effects in MNOK vs €M. ▪ EUR Rate AVE: o Q2 NOK 11.66 o Q1 NOK 11.00 38 % 15 % 52 % 37% 13 13%% 50 % 8
Slide 9: Business sectors
Business sectors ▪ Strong growth in Nordics and CEE and Revenue Business Sectors Q2 2023 Q2 2022 Change % 30.06.2023 30.06.2022 Change % improved profits overall. Nordics 76.8 61.5 15.3 25 % 151.4 119.0 32.4 27 % CEE 84.9 48.1 36.8 77 % 155.4 92.2 63.2 69 % ▪ EBIT margin increased from 6.3% to 9.3%.
Slide 10: Cash flow and working capital
Cash flow and working capital €M Cash Flow Q2 2023 Q2 2022 Change 30.06.2023 30.06.2022 Profit before tax 19.2 8.1 11.1 35.6 13.6 Depreciations 4.3 4.2 0.1 8.4 8.1 Change in inventory, accounts receivable, ▪ Q1 Cash flow from operating activities contract assets and accounts payable -5.7 -2.4 -3.3 -
Slide 11: Ratios
Ratios €M Ratios 30.06.2023 30.06.2022 Change 31.12.2022 ▪ Continued positive development on all key R3 NWC % sales 22.3 % 27.8 % -5.5 % 26.2 % R3 ROOC % sales 28.2 % 11.5 % 16.7 % 22.9 % ratios. R3 Cash Cycle conversion 84 108 -24 100 ▪ Net gearing and NIBD/EBITDA 0.84 and 1.7 Net Interest bearng d
Slide 12: Outlook full-year 2023
Outlook full-year 2023 ▪ Demand continues to be strong, and EBIT margin and capital efficiency are improving. ▪ Our previous outlook: o We expected revenues between 700 and 800 EUR million with an operating profit (EBIT) between 60 and 75 EUR million. ▪ Our current outlook: o We expect revenues betw
Slide 13: Key take-ways
Key take-ways ▪ Quarter-on-Quarter growth continues. ▪ Operational leverage continues to drive improved margins and earnings resilience in a dynamic market. ▪ Current level of revenue is expected to continue in the second half of 2023. ▪ Company is well-positioned for a continued growth journey, acc
Slide 14: Q&A
Q&A
Slide 15: Appendix: Definition of alternative performance measures
Appendix: Definition of alternative performance measures Order backlog Return on capital employed (ROCE) Cash conversion cycle (CCC) All firm orders and 4 months of committed customers forecast at EBIT/(Total assets - short term debt) Days of inventory outstanding + Days of receivables outstanding –