Kitron Asa · OSL:KIT
Kitron Asa — Q1 2023 Earnings Presentation
15 slides from Kitron Asa's earnings presentation, Apr 28, 2023
Slide 1: 2023 Q1 Presentation
2023 Q1 Presentation Kitron Group | 2023-04-28
Slide 2: First quarter 2023 Highlights
First quarter 2023 Highlights ▪ Revenue: 190,6 €M +32.3% (144 €M) ▪ EBIT: 17,3 €M (+119% from 7,9 €M last year) ▪ EBIT margin: 9.1% (5.5%) ▪ Net income %: 7,0 % (3.1%) ▪ Cash Flow: 10.4 €M (-10.9 €M) ▪ ROOC: 26.0% (11.5%) ▪ Cash Cycle Conversion: 90 days (108) ▪ NIBD/EBITDA: 2.0 (3.6) ▪ Order Backlo
Slide 3: First quarter trends
First quarter trends Revenue Q1 (M€) Demand ▪ Strong demand in Electrification and Defense Aerospace 73.8 68.2 ▪ Demand remains robust in the market sector industry 57.5 Supply Chain 48.5 42.3 44.4 ▪ Broad improvement – but not back to normal ▪ Large node semiconductors and custom parts remain chall
Slide 4: Order backlog
Order backlog Order backlog Figures in €M ▪ The growth is driven by products focused on automation, mobility, connectivity, and 210.4 autonomy in the Electrification, Industry, and Defense sectors 135.3 134.0 ▪ Another All-time-high for Order backlog: 115.6 129.5 585,9 €M! 74.6 81.0 77.8 ▪ Trend 31.
Slide 5: Market and operations
Market and operations ▪ Global megatrends electrification, sustainable energy, automation and defence show strong growth ▪ Investments in capacity continue and are on R12 Forward Demand (€M) track. ▪ Lead times and stock levels are reducing on 258 212 Connectivity and Medical devices 171 154 151 155
Slide 6: EUR as presentation currency
EUR as presentation currency ▪ Greater transparency o activities primarily outside of Norway o transactions, revenue, costs increasingly denominated in EUR. ▪ Treated as change in accounting policy in accordance with IAS 8. ▪ Currency conversion according to indirect method ▪ Opening balance at 1 Ja
Slide 7: EUR / NOK development
EUR / NOK development 2017 2018 2019 2020 2021 2022 CAGR Revenue MNOK 2436.7 2619.3 3299.4 3945.3 3711.4 6486.7 21.6 % Revenue €M 261.2 272.8 335.0 369.3 365.7 641.4 19.7 % Growth MNOK 7% 26 % 20 % -6 % 75 % Growth €M 4% 23 % 10 % -1 % 75 % Deviation 3% 3% 9% -5 % 0% NOK/EUR 9.33 9.60 9.85 10.73 10.
Slide 8: Revenues
Revenues 276 Connectivity Electrification Industry 203 Defence/Aerospace200 60.0 Medical devices 184 60.0 60.0 60.0 162 60.0 50.0 50.0 50.0 50.0 50.0 40.0 40.0 40.0 40.0 40.0 30.0 30.0 30.0 30.0 30.0 57.4 53.0 53.8 50.8 49.1 46.7 20.0 20.0 20.0 39.4 20.0 20.0 38.3 36.4 35.3 37.7 31.5 32.6 34.1 33.2
Slide 9: Business sectors
Business sectors €M Revenue Business Sectors Q1 2023 Q1 2022 Change Q-Q growth Full year 2022 ▪ Growth and improved profits across Nordics CEE 74.6 70.5 57.7 44.2 16.9 26.3 29.3 % 59.5 % 247.8 205.4 business sectors Rest of the world Group and eliminations 49.4 -3.9 46.0 -3.9 3.4 0.0 7.4 % 0.0 % 206
Slide 10: Cash flow and working capital
Cash flow and working capital €M Cash Flow Q1 2023 Q1 2022 Change 31.12.2022 ▪ Q1 Cash flow from operating Profit before tax 16.3 5.5 10.8 38.6 Depreciations 4.1 3.8 0.3 16.0 activities at 10,4 €M (-10,9 €M) Change in inventory, accounts receivable, contract assets and accounts payable 0.1 -17.8 17.
Slide 11: Ratios
Ratios €M Ratios 31.03.2023 31.03.2022 Change 31.12.2022 ▪ Positive development on all key ratios R3 NWC % sales 23.7 % 27.8 % -4.1 % 26.2 % R3 ROOC % sales 26.0 % 11.5 % 14.5 % 22.9 % ▪ Net gearing / NIBD at 2,0 and 1,9 excl. R3 Cash Cycle conversion 90 108 -18 100 IFRS Net gearing NIBD/EBITDA 0.91
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 expected revenues between 670 and 730 EUR million with an operating profit (EBIT) between 45 and EUR 55 million ▪ Our updated outlook expects revenues between 700 and 8
Slide 13: Key take-ways
Key take-ways ▪ Solid Quarter-on-Quarter growth ▪ Supply chain constraints have been improved ▪ Q1 margins are strong due to growing demand from customers in Electrification, Industry and Defence sectors ▪ Robust demand is expected to continue in Q2 ▪ Proposed dividend of 0.50 NOK ▪ Company is well-
Slide 14: Kitron Your ambition. Our passion.
Kitron Your ambition. Our passion. 4
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 –