Kitron Asa · OSL:KIT
Kitron Asa — Q2 2010 Earnings Presentation
11 slides from Kitron Asa's earnings presentation, Aug 12, 2010
Slide 1: Q2 results 2010: Positive trend continued in Q2
Q2 results 2010 12 August 2010 Jørgen Bredesen, CEO Björn Wigström, CFO Positive trend continued in Q2 Financial highlights • Order intake continued positive trend with an increase by 22% and order backlog increased by 17% vs Q2 2009 • Revenue stable with a 1.3% increase vs Q2 2009. • Operating prof
Slide 2: Expanding operations globally; Sale of Development Department concluded
Expanding operations globally Operational highlights New manufacturing plant in the USA decided established: • Planned to be operational from 1 January 2011 • Will predominantly be concentrated towards the Defense industry • A suitable location of 20,000 sqf will be available from 1 October 2010 • R
Slide 3: A more flexible cost base; Major new orders in Q2
A more flexible cost base Operational highlights • Increased efficiency – capacity for growth remains • Higher revenue per employee • Strong focus on competence improvement and modernization of systems and machine park to secure capacity for growth. • Outsourced development department reduces risk •
Slide 4: Financial statements Q2 2010: Revenue Group
Financial statements Q2 2010 Revenue Group Stabilised revenue 420 424 411 426 336 • Revenue at NOK 426 million in line with Q2 2009 (1.3% increase) NOK million • Q2 change by market segment: Q2 2010 vs Q2 2009 Data/Telecoms -14.7% Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Defence -1.7% Revenue by mark
Slide 5: Revenue by country; Decreased operating profit
Revenue by country * Revenue by country • Relatively stable revenue NOK million development across all entities: • Norway 1% higher - Mixed trends with slow development in Offshore and strong trend in Medical equipment • Sweden 11% higher – Strong Revenue by country recovery in the Swedish Industry
Slide 6: Profit by country; Cash flow
Operating profit by country * Profit by country • Mixed performance • Norway – margin improvement correlated with revenue recovery • Sweden – Kitron AB loss NOK 4.5 million in the quarter. Significant Operating margin by country improvement towards the end of the quarter (break even in June) • Lithu
Slide 7: Solid equity ratio
Solid equity ratio • Equity of NOK 438.8 million Equity (453.6) and equity ratio of 44.1% (46.9%) • Among the strongest in the EMS industry Equity ratio 46.9% 47.2% 45.9% 45.7% 44.1% 13 Market development 7
Slide 8: Improved market conditions in Q2; Stronger order intake
Improved market conditions in Q2 • Data/Telecoms trend mixed, positive outlook remains • Defence trend positive – lower revenue in the short term • Industry recovering from a low level • Medical equipment continues strong trend • Offshore at a lower level, recovery expected 2011 Revenue by market se
Slide 9: Order backlog is recovering; Expanding market coverage
Order backlog is recovering Order backlog Group • Order backlog at NOK 867.7 million (NOK 741.7 million) • Positive backlog development in the Medical equipment, Industry and Defence segments • Data/Telecoms expected to Order backlog Segment improve going forward • Significant drop in Offshore – rec
Slide 10: Outlook
Outlook Outlook • Order intake and backlog expected to improve further • Revenue growth combined with cost base adjustments expected to yield positive effect on profitability • Continued focus on operational improvements (supply chain management, ERP, exit or turn around loss making activities etc.)
Slide 11: Thank you!
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