Kitron Asa · OSL:KIT
Kitron Asa — Q3 2020 Earnings Presentation
15 slides from Kitron Asa's earnings presentation, Oct 21, 2020
Slide 1: First three quarters and Q3 results 2020
First three quarters and Q3 results 2020 Peter Nilsson, CEO Cathrin Nylander, CFO 2020-10-21 1
Slide 2: Record performance continues
Record performance continues NOK Million Q3 2020 vs Q3 2019 NOK Million 2020 vs 2019 Revenue 1 053.8 42.9 % Revenue 2 972.3 23.3 % EBIT 90.5 128.7 % EBIT 236.9 60.8 % Order Backlog 1 863.1 18.5 % Order Backlog 1 863.1 18.5 % Operating cash flow -3.2 -116.5 % Operating cash flow 104.8
Slide 3: Highlights and important events
Highlights and important events ▪ Revenue growth 43 % in Q3: Strong growth in Defence/Aerospace and Industry and very strong growth within Medical devices ▪ EBIT margin 8.6% (5.4%): This year all sites have run throughout the quarter with no shutdowns, contributing to the strong overall performance.
Slide 4: Important order in the quarter
Important order in the quarter ▪ MedAvail awards contract to Kitron o Production of automated medication dispensing equipment for pharmacies and hospitals. o The contract has a potential value of USD 50 million over a three-year period, with an extension option. o Production will take place at Kitro
Slide 5: Financials
Financials 5
Slide 6: Exceptional growth in Medical devices sector
Exceptional growth in Medical devices sector 1 041 1 054 889 878 738 NOK MILLION 42,9% Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q3 2020 vs Q3 2019 Share of total revenue Q3 2020 vs Q3 2019 Share of total revenue Norway Industry 349.7 29.1 % 33.0 % 228.6 28.9 % 21.7 % Defence/Aerospace Sweden 240.
Slide 7: Improved profits and profitability
Improved profits and profitability ▪ Record Q3 EBIT ▪ EBIT driven by profitable strong growth o Economies of scale o Exceptional utilization of overhead ▪ EBIT margin improved from 5.4% last year to 8.6% 88.0 90.5 56.4 58.4 NOK Million 51.2 54.2 42.3 39.6 30.0 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019
Slide 8: Q3 EBIT by country: Improved profits and profitability
Q3 EBIT by country: Improved profits and profitability EBIT ▪ Norway and Sweden at strong margin levels and 53.4 with improved profits ▪ CEE (Lithuania and Poland) o Solid improvement in Lithuania 7.1% (5.1%) NOK Million 14.9 14.8 16.0 o Polish facility according to expectations. 8.1 8.5 13.2 11.9 E
Slide 9: Balance sheet: Working capital efficiency improvement
Balance sheet: Working capital efficiency improvement Net working capital ▪ Working capital ratios o NOWC* 25.1% (29.5%) 1 013 1 059 1 134 942 887 o Cash conversion cycle* 96 (116) o ROOC* 22.4% (12.0%) NOK Million 27.9 % • exclusive IFRS16 ROOC% 24.4% Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 ▪ Cash
Slide 10: Market development
Market development 10
Slide 11: Strong order backlog
Strong order backlog - Particularly strong growth in Industry and Energy/Telecom - Growth 18.5%, underlying growth 12% Q3 2020 vs Q3 2019 Share of total backlog Industry Order Backlog 631.3 58.0 % 33.9 % Defence/Aerospace 663.9 1.0 % 35.6 % 1 884 2 064 2 102 1 863 Medical devices 239.5 15.6 %
Slide 12: Outlook
Outlook 12
Slide 13: Outlook
Outlook ▪ For 2020, Kitron has previously indicated a revenue outlook of between NOK 3 500 and 3 800 million and an EBIT margin between 6.7 and 7.5 per cent. ▪ Due to increased growth in the Defence/Aerospace, Industry and Medical devices sectors, overall profitability improvement and favourable cur
Slide 14: Key takeaways
Key takeaways Summary Q3 2020 ▪ Q3 stronger than Q2! Extraordinary performance by Kitron employees ▪ Record Q3 revenue and first three quarters ▪ Increased margins ▪ Outlook updated ▪ 2019 dividend payout announced 14
Slide 15: Thank You!
Thank You! 15