Kitron Asa · OSL:KIT
Kitron Asa — Q1 2019 Earnings Presentation
15 slides from Kitron Asa's earnings presentation, Apr 30, 2019
Slide 1: First quarter results 2019
First quarter results 2019 Cathrin Nylander, Acting CEO and CFO 30 April, 2019
Slide 2: Kitron's acting CEO comments
Cathrin Nylander, Kitron’s acting CEO comments Revenue increased 24.8% in the first quarter, and resulted in record quarterly revenue Revenue growth this quarter were particularly strong in the Industry sector. Four out of five sectors had double digit growth. Improved profitability with EBIT
Slide 3: Financial highlights Q1: Revenue, order backlog and operating profit at record levels
Financial highlights Q1: Revenue, order backlog and operating profit at record levels Revenue NOK mill. Q1 2019 vs Q1 2018 Strong revenue growth of 24.8 % yoy 20% organic growth Revenue 812,8 24,8 % Operating Margin/EBIT Operating margin at 6.3% (6.0%) EBIT 51,2 32,2 % EBIT increased
Slide 4: Important agreements in the first quarter
Major new orders: Important agreements in the first quarter Kitron receives communication order In January, Kitron received an order for a new product within industrial communication Annual revenues are NOK 25 million for at least five years Production will take place at Kitron's plants in Lit
Slide 5: Financial statements First quarter 2019
Financial statements First quarter 2019
Slide 6: Very strong revenue growth of 24.8% in the first quarter
Revenue Q1: Very strong revenue growth of 24.8% in the first quarter Q1 2019 vs Q1 2018 Share of total revenue Industry 18,4 % 44,2 % Defence/Aerospace 9,4 % 17,5 % Medical devices 20,9 % 16,3 % Energy/Telecoms 37,1 % 16,8 % Offshore/Marine 392,3 % 5,2 % 6
Slide 7: Revenue growth in all countries
Revenue by country Q1: Revenue growth in all countries Norway 32,1 % 25,0 % 266 299 Q1/2018 Q1/2019 Sweden 11,5 % 20,7 % 210 174 159 156 Lithuania 12,2 % 35,5 % 110 86 49 USA 432,6 % 5,8 % NOK million 9 Norway Sweden Lithuania USA Others Other 27,2 % 13,0 % Before group entities and elimin
Slide 8: Improved earnings
Quarterly EBIT: Improved earnings Strong EBIT growth this quarter. First quarter EBIT 51,2 increased 12.5 million, an increase of 32 per cent 45,5 43,1 45,0 42,3 compared to last year. 38,8 30,8 30,0 29,2 EBIT margin was 6.3% (6.0%) One-offs reducing Q4-18 with 6.7 million NOK million 66.1 % Q
Slide 9: Strong margin improvement in Norway and Sweden
EBIT by Country Q1: Strong margin improvement in Norway and Sweden EBIT* 27,4 27,0 Profitability improvements seen in both Norway and Sweden. 11,2 10,8 9,4 Lithuania weaker than last year, but still strong. 6,4 5,2 5,1 Norway had in-efficiencies related to primarily -1,1 -0,1 ramp-ups and prod
Slide 10: Working capital expected to ease in 2019
Balance sheet: Working capital expected to ease in 2019 Operating cash flow Cash flow 42,8 NOK million Positive cash flow from operations (25.4) 25,4 Financial gearing 230 % NIBD / EBITDA 2.9 (0.8) -19,5 -26,8 Excluding IFRS16 2.6 -41,0 Working capital Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1
Slide 11: Market development
Market development
Slide 12: Record order backlog
Market development: Record order backlog Order backlog Substantially increase in order backlog within all market sectors, except Energy/Telecom. NOK million 1 466 1 335 Organic growth of 28% 1 122 1 025 1 009 MNOK 1 466 (1 025) +43.0% Defence: 589 +54% Medical: 149 +38% Industry: 463 +31
Slide 13: Outlook
Outlook
Slide 14: Outlook
Outlook For 2019, Kitron expects revenue to grow between NOK 2 900 and 3 200 million. EBIT margin is expected to be between 6.2 and 6.6 per cent. Growth is primarily driven by the acquisition of the EMS division of API Technologies Corp. and growth for customers in the Industry and Offshore/ma
Slide 15: Thank you!
Thank you!