Kitron Asa · OSL:KIT
Kitron Asa — Q4 2011 Earnings Presentation
9 slides from Kitron Asa's earnings presentation, Feb 9, 2012
Slide 1: Q4 results 2011: Strong underlying profitability & performance
Q4 results 2011 9 February 2012 Jørgen Bredesen, CEO Björn Wigström, CFO Strong underlying profitability & performance Financial highlights for Q4 • Stable demand from customers with order intake up by 7.6 per cent compared to Q3 2011. • Revenue slightly down compared to same quarter last year. Offs
Slide 2: Operational highlights and major new orders in Q4
Operational highlights • Close-down of the Karlskoga site • Process started and negotiations with labour union ongoing. • Reasons for closing down: (i) that the single largest customer transferred manufacturing to Kitron’s site in Ningbo, (ii) weaker outlook for the Defence segment. • The close-down
Slide 3: Financial statements Q4 2011: Stable revenue
Financial statements Q4 2011 Stable revenue Revenue Group • Revenue at NOK 443 million, slightly below Q4 2010, but higher than Q1 – Q3 2011. • Q4 change by market segment: Q4 2011 vs Q4 2010 Defence/Aerospace -2.1% Industry 22.7% Medical equipment -10.1% Offshore/Marine 77.1% Energy/Telecoms -41.5%
Slide 4: Revenue by country and improved profitability
Revenue by country * Revenue by country Mixed trend: • Norway 20.4% lower – Lower demand from defence customers in 2011. Partly compensated by recovery in Offshore. • Sweden up by 16.4% - strong increase in Swedish industrial segment. Revenue by country Total revenue NOK 443 million • Lithuania 22.6
Slide 5: Profit by country and positive operating cash flow
Operating profit by country * Profit by country • Margin improvement in main entities: • Norway maintain result on lower revenue and improve margin. Operating margin by country • Sweden turned around to profitability before restructuring. • Outstanding performance in Lithuania contribute to strong m
Slide 6: Comfortable level of equity
Comfortable level of equity Equity • Equity of NOK 436 million (420.6 million) and equity ratio of 41.1% (41.4%) Equity ratio 41.4% 40.6% 42.1% 42.6% 41.1% 11 Market development 6
Slide 7: Market development
Market development • Energy/Telecoms • Competitive market segment with strong price pressure. Kitron has a good portfolio of customers that continue to project growth. • Defence/Aerospace • Lower demand in the short to medium term • Long term outlook remains promising with several major programs sec
Slide 8: Order backlog and outlook
Order backlog Group Order backlog trend • Order backlog at NOK 799.3 million compared to NOK 836.1 million in Q4 2010 • Solid portfolio of contracts in Defence/Aerospace segment • Optimistic about the outlook: Order backlog Segment • Strong positive trend in Offshore/Marine and Industry expected to
Slide 9: Outlook and Thank you!
Outlook • Overall a stable market trend and no significant signs of a slow down due to the global economic development. • Kitron believe in a relatively stable turnover and improved profitability in 2012 compared with 2011: • Focus on manufacturing efficiency and global sourcing remains a priority a