Kitron Asa · OSL:KIT
Kitron Asa — Q4 2016 Earnings Presentation
21 slides from Kitron Asa's earnings presentation, Feb 16, 2017
Slide 1: Full year and Q4 results 2016
Full year and Q4 results 2016 Peter Nilsson, CEO Cathrin Nylander, CFO February 16th, 2017
Slide 2: Financial highlights Q4: Strong growth
Financial highlights Q4: Strong growth NOK mill. Q4 2016 vs Q4 2015 Strong revenue growth Underlying growth 12.7% Revenue 570.3 8.7 % Strong profitability 6.0% (6.4%) EBIT 34.1 1.5 % Net working capital Order backlog 1019.4 4.5 % Higher capital efficiency Operating cash flow 36.4
Slide 3: Financial highlights Full year 2016: Growth and margin expansion continue
Financial highlights Full year 2016: Growth and margin expansion continue Revenue growth continues NOK mill. 2016 vs 2015 Continued profitability improvement Revenue 2093.0 7.2 % EBIT margin 5.6% (5.3%) EBIT 117.8 14.7 % Order backlog growing Defence gives long-term visibility Order ba
Slide 4: Important agreements in the fourth quarter
Major new orders: Important agreements in the fourth quarter Northrop Grumman awards contracts to Kitron In November, Kitron was selected by Northrop Grumman Corporation as an international source for manufacturing of the sub-assembly for the Dual Channel Transmit/Receive (DCTR) module for the F
Slide 5: Important agreements in the fourth quarter
Major new orders: Important agreements in the fourth quarter Kitron signs contract worth NOK 300 million In December, Kitron signed an agreement with a leading industrial supplier with a potential contract value of NOK 300 million over a three- year period. The agreement covers manufacturing o
Slide 6: Facility relocation in Sweden
Highlights: Facility relocation in Sweden The relocation of the Swedish facility in Jönköping to Torsvik is performed according to plan and budget and without significant technical challenges All process steps validated and up and running by mid/end January. Temporary inefficiencies after star
Slide 7: Dividend
Highlights: Dividend The board proposes that the Annual General Meeting decides on a dividend of NOK 0.25 per share (NOK 0.21). This represents 60 per cent of net profit after tax for the group and in line with dividend policy: “Kitron’s dividend policy is to pay out an annual dividend between d
Slide 8: Financial statements Q4 2016
Financial statements Q4 2016 8
Slide 9: Strong growth in several sectors
Revenue Q4: Strong growth in several sectors 563 570 Q4 2016 vs Q4 2015 Share of total revenue 525 497 Offshore/Marine -78.9 % 1.3 % 463 Medical devices -3.6 % 24.6 % Defence/Aerospace 20.5 % 27.8 % 8.7 % Energy/Telecoms 20.2 % 14.3 % NOK million Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Indus
Slide 10: Growth driven by Industry sector – robust mix
Revenue Full year: Growth driven by Industry sector – robust mix 2016 vs 2015 Share of total revenue Revenue full year Offshore/Marine -68.0 % 2.1 % 2 093 1 952 Medical devices 2.6 % 23.2 % 1 751 Defence/Aerospace 7.3 % 27.4 % 7.2 % Energy/Telecoms 12.3 % 14.5 % NOK million 2014 2015 2016 In
Slide 11: Continued strong growth in Lithuania and Sweden
Revenue by country Q4*: Continued strong growth in Lithuania and Sweden 228 Q4 2016 vs Q4 2015 Share of total revenue 202 Q4/2015 Q4/2016 176 Norway -11.3 % 32.4 % 160 140 129 Sweden 25.9 % 28.3 % 90 84 Lithuania 24.3 % 25.8 % Others -6.7 % 13.4 % NOK million Norway Sweden Lithuania Others 1
Slide 12: Continued strong growth in Lithuania and Sweden
Revenue by country Full year*: Continued strong growth in Lithuania and Sweden 859 2016 vs 2015 Share of total revenue 767 2015 2016 Norway -10.8 % 32.6 % 593 636 Sweden 22.6 % 25.2 % 483 472 387 357 Lithuania 34.7 % 27.0 % NOK million Others -7.9 % 15.2 % Norway Sweden Lithuania Others 12
Slide 13: Profitability level stabilised at a higher level
Quarterly EBIT: Profitability level stabilised at a higher level Cost reductions take effect Inefficiencies due to 33.6 33.1 34.1 relocations in Q1 and 30.1 Q4 2016 26.3 22.1 20.8 20.5 Profitability in Q1 2016 includes one-offs in of 14.3 MNOK 5 NOK million 138 % Q4 2014 Q1 2015 Q2 2015 Q3 201
Slide 14: Lithuania, China and US drives profitability
EBIT by country Q4: Lithuania, China and US drives profitability Norway EBIT* 13,1 Cost reductions drives margin 11,3 11,0 improvement Sweden 9,9 Efficiency challenges and relocation 7,5 7,6 Lithuania 6,7 5,0 EBIT improvement driven by strong Revenue growth Other Revenue growth and i
Slide 15: Lithuania, China and US drives profitability
EBIT by country Full year: Lithuania, China and US drives profitability EBIT* Norway Volume reduction and inefficiences 48,3 Sweden 36,7 Efficiency challenges and relocation 32,7 34,6 Lithuania 27,5 26,5 28,5 23,5 EBIT improvement driven by strong Revenue growth Other Revenue growth
Slide 16: Cash flow and net working capital
Balance sheet: Cash flow Operating cash flow NOK million Cash flow 87.8 Q4 Cash flow MNOK 36.4 (87.8) 61.0 36.4 36.4 Working capital -58.6 % Working capital ended at last years level -25.3 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Cash conversion (R3*) cycle 79, a reduction from 90 last year
Slide 17: Market development
Market development www.kitron.com
Slide 18: Order backlog underpins a positive revenue outlook
Order backlog: Underpins a positive revenue outlook Order Backlog MNOK Order backlog 1019 vs. 976 last year. Increase of NOK million 4.5% with 9.2% underlying growth. 1 019 Defence: 449 +6% (423) 989 Medical: 160 -2% (148) 980 Industry: 302 +6% (285) 976 Energy/Telecom: 117 +21% (96) Off
Slide 19: Outlook
Outlook www.kitron.com
Slide 20: Outlook
Outlook For 2017, Kitron expects revenue to grow to between NOK 2 150 and 2 350 million. EBIT margin is expected to be between 5.6 and 6.4 per cent. The growth is primarily driven by customers in the Industry sector. The profitability increase is driven by cost reduction activities and improve
Slide 21: Thank you!
4 Kitron Your ambition. Our passion. Thank you!