Kitron Asa · OSL:KIT

Kitron Asa — Q2 2016 Earnings Presentation

19 slides from Kitron Asa's earnings presentation, Jul 13, 2016

  1. Slide 1: First half year and Q2 results 2016

    First half year and Q2 results 2016 Peter Nilsson, CEO Cathrin Nylander, CFO July 13th, 2016

  2. Slide 2: Financial highlights Q2: Solid improvement of all key figures

    Financial highlights Q2: Solid improvement of all key figures  Strong growth in revenue and NOK mill. Q2 2016 vs Q2 2015 order backlog  Underlying growth 9.8% Revenue 563,1  15,2 %  Improved profitability  5.9% (4.5%) EBIT 33,1  50,1 %  Improved capital efficiency Order backlog 989,4  19,2 %

  3. Slide 3: Financial highlights first half year: Solid growth

    Financial highlights first half year: Solid growth NOK mill. 2016 vs 2015  Solid growth in revenue and strong growth in order backlog Revenue 1060,1  10,5 %  Underlying growth 5%  Improved profitability EBIT 53,6  25,1 %  5.1% (4.5%)  Profitability adjusted for Order backlog 989,4  19,2 % on

  4. Slide 4: Important orders in the second quarter

    Major new orders: Important orders in the second quarter  Defence communications order  Kitron received an order from Kongsberg Defence & Aerospace AS for military communications equipment, for supplies to an existing contract for deliveries to Hungary.  Kitron will supply various communications

  5. Slide 5: Capacity adjustments

    Highlights: Capacity adjustments  Increased SMT capacity due to strong revenue growth  Kitron has decided to increase production capacity by investing in two new SMT lines, one in Lithuania and one in Sweden.  They will be in place in the fourth quarter 2016 in Lithuania and in the first quarter

  6. Slide 6: Financial statements Q2 2016

    Financial statements Q2 2016 6

  7. Slide 7: Revenue Q2: Exceptional growth in Industry sector

    Revenue Q2: Exceptional growth in Industry sector Q2 2016 vs Q2 2015 Share of total revenue Offshore/Marine -57,3 %  2,9 % Medical devices 15,0 %  21,4 % Defence/Aerospace 14,3 %  28,8 % Energy/Telecoms 14,0 %  14,5 % Industry 37,5 %  32,3 % 7

  8. Slide 8: Revenue first half year: Solid growth driven by growth in Industry sector

    Revenue first half year: Solid growth driven by growth in Industry sector 2016 vs 2015 Share of total revenue  Revenue first half year Offshore/Marine -64,9 % 2,8 % 1 060 960 Medical devices 15,1 %  22,2 % 893 Defence/Aerospace 0,8 %  25,9 % 10.5 % Energy/Telecoms 17,7 %  14,0 % NOK million 2014

  9. Slide 9: Revenue by country Q2: Continued strong growth in Lithuania and Sweden

    Revenue by country Q2*: Continued strong growth in Lithuania and Sweden 224 Q2 2016 vs Q2 2015 Share of total revenue 216  Q2/2015 Q2/2016 Norway 3,9 % 35,2 % 173 147 Sweden 20,5 %  23,0 % 122 119 104 94 Lithuania 45,3 %  27,1 % NOK million Others -10,0 %  14,7 % Norway Sweden Lithuania Others 9

  10. Slide 10: Revenue by country first half year: Strong growth in Lithuania and Sweden

    Revenue by country first half year *: Strong growth in Lithuania and Sweden 2016 vs 2015 Share of total revenue 447  408 2015 2016 Norway -8,7 % 34,0 % 346  276 Sweden 25,6 % 23,0 % 231 220 190 170 Lithuania 49,7 %  28,8 % NOK million Others -10,5 %  14,1 % Norway First half year Sweden Lithuani

  11. Slide 11: Quarterly EBIT: Profitability level improved

    Quarterly EBIT: Profitability level improved  Lithuanian growth driver of profit  Norway Q1 temporary negative 33,6 effects remedied 33,1 26,3  US volumes picked up in Q2 22,1 20,8 20,5 14,3 6,9 6,9 NOK million 379 % Q2 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Margin 1,5 % 3,0

  12. Slide 12: EBIT by country Q2: Lithuania drives profitability

    EBIT by country Q2: Lithuania drives profitability EBIT* 15,0  Norway NOK million  First quarter temporary efficiency effects remedied. 10,2  Sweden 8,6  Quarterly EBIT affected by currency 7,3 7,5 7,5 6,6 effects 5,1  Lithuania  EBIT improvement driven by strong Revenue growth  Other  Reven

  13. Slide 13: EBIT by country first half year: Lithuania drives profitability

    EBIT by country first half year: Lithuania drives profitability EBIT*  Norway 30,3 NOK million  First quarter temporary efficiency effects remedied, but half year figures affected. 19,3  Sweden 15,4 14,5  Volume drives profitability 10,8 10,9 11,7 10,8  Lithuania  EBIT improvement driven by st

  14. Slide 14: Balance sheet: Cash flow and net working capital

    Balance sheet: Cash flow Operating cash flow 87,8 NOK million  Cash flow 61,0 48,6  Q2 Cash flow MNOK 61.0 (48.6) 32,7  The improvement in the quarter due 25.5 % to increased factoring debt and improved profitability -25,3 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016  Working capital Net working capi

  15. Slide 15: Market development

    Market development www.kitron.com

  16. Slide 16: Order backlog: Strong growth in Industry

    Order backlog: Strong growth in Industry Order backlog Order Backlog MNOK NOK million  989 vs. 830 Q2 last year (increase of 19.2 %) 989  Defence: 480 +21 % (368) 976  Medical: 167 -5 % (177) 916  Industry: 217 +32 % (164) 902  Energy/Telecom: 109 +31% (83)  Offshore: 17 -57% (39) 830 19.2 % Q

  17. Slide 17: Outlook

    Outlook www.kitron.com

  18. Slide 18: Outlook

    Outlook  For 2016, Kitron expects revenue of between NOK 2 050 and 2 250 million and EBIT margin of 5.3 to 6.3 per cent.  The growth is driven by increased demand in the Industry and Defence/Aerospace sectors.  The profitability increase is driven by cost reduction activities and improved efficie

  19. Slide 19: Thank you!

    4 Kitron Your ambition. Our passion. Thank you!

Kitron — Q2 2016 Earnings Presentation on 6ix