Kitron Asa · OSL:KIT
Kitron Asa — Q2 2013 Earnings Presentation
17 slides from Kitron Asa's earnings presentation, Jul 23, 2013
Slide 1: Q2 results 2013
Q2 results 2013 23 July 2013 Dag Songedal, interim CEO
Slide 2: Financial highlights for Q2: Growth despite challenging markets
Financial highlights for Q2: Growth despite challenging markets • Stable customer demand despite challenging US and European markets • Inventory reduction program improved cash flow 2
Slide 3: Operational streamlining continues
Operational highlights for Q2: Operational streamlining continues • Effects fully visible in fourth quarter 2013 • Cost reductions • Optimized supply chain • Improved performance within manufacturing • Strong focus on working capital improvements • Inventory reductions achieved • Common distribution
Slide 4: Financial statements Q2 2013
Financial statements Q2 2013
Slide 5: Revenue: Impacted by economic uncertainty
Revenue: Impacted by economic uncertainty • Growth despite: • Customers reducing inventories • Shorter order horizon 5
Slide 6: Industry segment shakes off recession
Revenue by market segment: Industry segment shakes off recession Q2 2013 vs Q2 2012 Share of total revenue Offshore/Marine Long-term prospects remain positive -10,5 % 17,9 % Market growth offsets reduced Medical equipment manufacturing scope from key -2,5 % 23,9 % customers High activity towar
Slide 7: Strong growth in Lithuania and new entities
Revenue by country*: Strong growth in Lithuania and new entities Q2 2013 vs Q2 2012 Share of total revenue Norway 2,6 % 52,8 % Sweden -22,1 % 20,6 % Lithuania 22,0 % 17,1 % Others 82,3 % 9,4 % * Before group entities and eliminations 7
Slide 8: EBIT: Operational streamlining continues
EBIT: Operational streamlining continues • Improvement initiatives 24,4 implemented • Focus on profitability • Operational improvement 15,4 programs 10,6 9,3 • Short term focus on cost - 12.2 % reductions NOK million 3,9 • Effects fully visible in fourth quarter 2013 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Slide 9: EBIT by country: Hit by volume effects
EBIT by country: Hit by volume effects EBIT* 8,2 • Norway: Stable profitability, cost NOK million 6,3 5,6 5,6 reducing measures to improve 4,3 EBIT initiated 2,1 • Sweden: Volume impact • Lithuania: Improved profitability due to increased volume -1,7 • New entities: Making progress -5,4 despite dela
Slide 10: Balance sheet: Getting results of inventory program
Balance sheet: Getting results of inventory program Operating cash flow • Focus on inventory reduction NOK million across the group continues 84,8 • Target to reduce NOK 50 million in 2013 281 % • Establishment of common distribution 29,2 centre -16,1 -15,4 -18,1 Net working capital NOK million - 5.
Slide 11: Market development
Your ambition. Our passion. 4 Kitron Market development
Slide 12: Order backlog: Mixed trend by market segment
Order backlog: Mixed trend by market segment • Mixed backlog trend • Increase in Defence/Aerospace • Industry show a stable trend • Reduced backlog in other segments • Overall market situation uncertain • Customer forecast volatility increasing • Customers reducing risk through shorter order horizon
Slide 13: Market development: Offshore/Marine and Medical equipment
Market development • Offshore/Marine • Kitron foresee a lower revenue in 2013 compared to 2012 • Long term prospects remain positive • Medical equipment • Flat development expected in short term (2013) as reduced production scope for one customer offsets growth • Long term healthy market fundamental
Slide 14: Market development: Defence/Aerospace, Energy/Telecoms, Industry
Market development • Defence/Aerospace • Promising long term outlook • Several major programs secured • Still uncertainty in the Swedish defence market and slower development in the US • Energy/Telecoms • Expected to stabilize on current lower level • Industry • Key customers indicate modest growth
Slide 15: Outlook
Outlook
Slide 16: Outlook
Outlook • Revenue expected to be slightly lower in 2013 than 2012 • Revenue in second half of 2013 is expected to be at the same level as for second half of 2012 • Programs to increase profitability and cash flow • Driving top line growth • Streamlining internal operations to reduce costs and improv
Slide 17: Thank you!
Thank you! 17