Kitron Asa · OSL:KIT
Kitron Asa — Q1 2020 Earnings Presentation
14 slides from Kitron Asa's earnings presentation, Apr 23, 2020
Slide 1: Q1 results 2020
Q1 results 2020 Peter Nilsson, CEO Cathrin Nylander, CFO 2020-04-23 1
Slide 2: Strong overall development
Strong overall development NOK Million Q1 2020 vs Q1 2019 Revenue 877.7 8.0 % ▪ Revenue growth 8%, underlying 3%* ▪ EBIT margin 6.7% (6.3%) EBIT 58.4 13.9 % ▪ Order backlog 41%, underlying 30%* Order Backlog 2 063.7 40.8 % ▪ Net working capital 9.3%, underlying -2% * ▪ EPS NOK 0.23 (NOK 0.21)
Slide 3: Important events in the quarter
Important events in the quarter Corona Pandemic ▪ All Kitron sites are up and running at normal or high load. ▪ A number of actions in place since late February to minimize risk to our employees and our capacity. ▪ Several of our sites are officially considered critical infrastructure and important
Slide 4: Financials
Financials 4
Slide 5: Very strong revenue growth in Defence/Aerospace
Very strong revenue growth in Defence/Aerospace 860 889 878 813 738 NOK MILLION 8.0% Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q1 2020 vs Q1 2019 Share of total revenue Q1 2020 vs Q1 2019 Share of total revenue Industry Norway 395.7 14.9 % 45.1 % 241.1 14.6 % 26.4 % Sweden Defence/Aerospace 250.
Slide 6: Improved profits and profitability
Improved profits and profitability ▪ Record Q1 EBIT ▪ EBIT at projected margins ▪ No material effect from currency EBIT 56.4 58.4 54.2 51.2 45.0 42.3 38.8 39.6 NOK Million 30.0 13.9 % Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Margin 6.0 % 6.8 % 5.3 % 5.7 % 6.3 % 6.6 % 5
Slide 7: Q1 EBIT by country: Margin improvements in Norway, US and China
Q1 EBIT by country: Margin improvements in Norway, US and China ▪ Strong improvements in Norway EBIT ▪ Sweden retains margins although a 27.0 21.7 revenue reduction of ~15% compared to 17.5 last year 12.4 ▪ CEE (Poland 3.9% and Lithuania 7.1%), 9.4 11.2 9.4 10.8 NOK Million revenue growth not yet en
Slide 8: Balance sheet: Working capital affected by currency
Balance sheet: Working capital affected by currency Net working capital ▪ Working capital ratios o NOWC* 27.5% (24.9%) 1 013 o Cash conversion cycle* 105 (91) 942 933 o ROOC* 15.3% (17.1%) 927 NOK Million 887 • exclusive IFRS16 ROOC% 16.6% 9.3 % Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 ▪ Cash flow Op
Slide 9: Market development
Market development 9
Slide 10: Strong order backlog
Strong order backlog - Particularly strong growth in Defence/Aerospace, Medical devices and Energy/Telecoms sectors - Growth 41%, underlying growth 30% Q1 2020 vs Q1 2019 Share of total revenue Industry Order Backlog 520.5 12.3 % 25.2 % Defence/Aerospace 825.4 40.1 % 40.0 % 1 884 2 064 Medical d
Slide 11: Outlook
Outlook 11
Slide 12: Outlook
Outlook ▪ Uncertainty increased significantly due to corona pandemic outbreak as well as long-term impact from difficult world economic situation in general ▪ While we recognize increased uncertainty and expect volatility, our overall outlook for 2020 remains unchanged: o For 2020, Kitron expects re
Slide 13: Key takeaways
Key takeaways Summary Q1 2020 ▪ Strong growth in order backlog ▪ Record Q1 revenue ▪ Increased margins ▪ Strong cash flow ▪ Outlook maintained 13
Slide 14: Thank You!
Thank You! 14