Kitron Asa · OSL:KIT
Kitron Asa — Q4 2018 Earnings Presentation
21 slides from Kitron Asa's earnings presentation, Feb 14, 2019
Slide 1: Full year and Q4 results 2018
Full year and Q4 results 2018 Cathrin Nylander, Acting CEO and CFO 14 February, 2019
Slide 2: Financial highlights Q4: Strong revenue growth
Financial highlights Q4: Strong revenue growth NOK mill. Q4 2018 vs Q4 2017 Strong orders received MNOK 918 (940) Revenue 738,6 10,6 % EBIT margin 5.7% (6.5%) Excluding one offs 6.6% EBIT 42,3 -1,9 % EPS 0.16 (0.17) NOK Order backlog 1334,8 2,2 % Inventory build-up to secure delive
Slide 3: Financial highlights Full year: Strong order growth, including oil and gas
Financial highlights Full year: Strong order growth, including oil and gas NOK mill. 2018 vs 2017 Revenue growth 7.5% 22% growth excluding Defence/Aerospace Revenue 2619,3 7,5 % EBIT margin 6.0% (6.1%) EBIT 156,1 5,0 % Excluding one offs 6.2% Order backlog 1334,8 2,2 % EPS 0.63 (0.57
Slide 4: Important agreements in the fourth quarter
Major new orders: Important agreements in the fourth quarter Kitron receives NOK 150 million order In November, Kitron signed a three-year manufacturing agreement for electronic modules for electric wheelchairs with a leading producer of complex rehab technology Kitron will supply high-level ass
Slide 5: Kitron to acquire the EMS division of API Technologies Corp.
Kitron to acquire the EMS division of API Technologies Corp. Kitron has entered into an agreement with API Technologies Corp. to acquire it’s EMS division in the US The acquisition marks a substantial strengthening of Kitron's position in the US market. Business is highly complementary to Kitr
Slide 6: Capital Markets Day
Capital Markets Day Kitron will host a Capital Markets Day in Oslo on March 21, 2019. 6
Slide 7: Financial statements Full year and Q4 2018
Financial statements Full year and Q4 2018 7
Slide 8: Revenue Q4: 24% revenue growth excl. Defence/Aerospace sector
Revenue Q4: 24% revenue growth excl. Defence/Aerospace sector Q4 2018 vs Q4 2017 Share of total revenue 668 651 667 563 739 Industry 38,6 % 47,6 % Defence/Aerospace -30,6 % 15,7 % Medical devices 2,8 % 19,2 % 10.6 % Energy/Telecoms 12,9 % 14,9 % NOK million Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4
Slide 9: Revenue Full year: 22% revenue growth excl. Defence/Aerospace sector
Revenue Full year: 22% revenue growth excl. Defence/Aerospace sector 2018 vs 2017 Share of total revenue Revenue whole year Industry 33,3 % 45,3 % 2 093 2 437 2 619 Defence/Aerospace -31,3 % 17,2 % Medical devices 14,1 % 19,8 % 7.5 % Energy/Telecoms 2,4 % 15,8 % NOK million 2016 2017 2018 Of
Slide 10: Revenue by country Q4: Continued strong growth in Lithuania and China
Revenue by country Q4*: Continued strong growth in Lithuania and China Q4 2018 vs Q4 2017 Share of total revenue Q4/2017 Q4/2018 Norway -2,3 % 24,2 % 290 222 Sweden -4,7 % 23,9 % 192 187 193 184 106 110 Lithuania 30,7 % 37,6 % NOK million Others 3,8 % 14,3 % Norway Sweden Lithuania Others No
Slide 11: Revenue by country Full year: Continued strong growth in Lithuania and China
Revenue by country Full year*: Continued strong growth in Lithuania and China 2018 vs 2017 Share of total revenue Norway -9,7 % 24,0 % 818 1009 2017 2018 738 708 Sweden -6,3 % 23,9 % 666 663 437 395 Lithuania 23,2 % 36,4 % NOK million Others 10,7 % 15,8 % Norway Sweden Lithuania Others Norwa
Slide 12: Quarterly EBIT: Seasonal variations in profitability
Quarterly EBIT: Seasonal variations in profitability Strong quarter although component 49,0 45,5 allocations creates less flexibility for 43,1 45,0 short term changes in demand. 38,8 34,1 30,8 30,0 29,2 EBIT in Q4 2019 is negatively affected by NOK 6.7 million of external one-offs. These one-off
Slide 13: EBIT by country Q4: Strong profitability in Lithuania, Sweden and China
EBIT by country Q4: Strong profitability in Lithuania, Sweden and China Lithuania back to normal EBIT* profitability levels after short term 25,4 demand push outs 21,8 Strong profitability improvements 15,2 13,6 13,3 in Sweden in spite of lower volumes from defence projects 9,7 6,7 7,0 Norway
Slide 14: EBIT by country Full year: Lithuania continues to drive profits
EBIT by country Full year: Lithuania continues to drive profits EBIT* Lithuania and China show EBIT 84,6 improvement 69,1 Profitability improvements/stable in Sweden and Norway in spite of 36,7 38,8 36,9 31,7 lower volumes from defence 27,7 26,7 projects (total volume reductions of 6% and approx
Slide 15: Balance sheet: Inventory build-up to secure deliveries and future growth
Balance sheet: Inventory build-up to secure deliveries and future growth Cash flow Operating cash flow 90,8 NOK million Q4 Cash flow MNOK -26.8 (90.8) Inventory build-up 42,7 Allocated material /postponements -130 % Growth -19,4 -26,8 Production for later deliveries -41,0 Q4 2017 Q1 2018
Slide 16: Market development
Market development www.kitron.com 16
Slide 17: Market development: Strong backlog – offshore strengthened
Market development: Strong backlog – offshore strengthened Order backlog Comparable: MNOK 1 518 (1 306) +16.2% NOK million 1 519 Defence: 472 -6% 1 306 1 279 Medical: 215 +11% 1 161 1 141 Industry: 541 +19% Energy/Telecom: 186 +11% Offshore: 103 +391% IFRS adjusted: 16.2 % MNOK 1 335 Q
Slide 18: Cathrin Nylander, Kitron's Acting CEO, comments
Cathrin Nylander, Kitron’s Acting CEO, comments: Strong order intake of NOK 918 million in the quarter resulted in close to 16 per cent growth of order backlog Revenue of NOK 739 million, an increase of 11 per cent. Full-year revenue NOK 2 619 million, an increase of 7.5 per cent Adjusted for
Slide 19: Outlook
Outlook www.kitron.com 19
Slide 20: Outlook
Outlook For 2019, Kitron expects revenue to grow to 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/m
Slide 21: Thank you!
< hit) es Thank you!