Kitron Asa · OSL:KIT
Kitron Asa — Q2 2019 Earnings Presentation
21 slides from Kitron Asa's earnings presentation, Jul 11, 2019
Slide 1: First half year and Q2 results 2019
First half year and Q2 results 2019 Cathrin Nylander, Acting CEO and CFO 11 July, 2019
Slide 2: Cathrin Nylander, Kitron's acting CEO comments
Cathrin Nylander, Kitron’s acting CEO comments Continued strong topline growth with revenue increasing 29,0% second quarter and 26.9% year to date US acquisition and Norway and Lithuania contributed to the strong revenue growth EBIT margin at 6.6% second quarter with continued margin improveme
Slide 3: Financial highlights Q2: Continued strong growth and profitability
Financial highlights Q2: Continued strong growth and profitability Revenue Continued strong growth 29.0 % yoy N O K M illio n Q 2 2019 vs Q 2 2018 Organic growth 19% R e ve n u e 2 9 ,0 % Strong value growth within the industry, 8 6 0 ,2 defence/aerospace and offshore/marine segment E B
Slide 4: Financial highlights first half year: Continued strong growth and profitability
Financial highlights first half year: Continued strong growth and profitability Revenue N O K M illio n 2019 v s 2018 Continued strong growth 26.9 % R e ve n u e Organic growth 19% 2 6 ,9 % 1 6 7 3 ,0 Strong value growth within the industry, E B IT defence/aerospace and offshore/marine s
Slide 5: Important agreements in the second quarter
Major new orders: Important agreements in the second quarter Kitron signs contract with Efore Group In April, Efore Group selected Kitron as manufacturing partner for some of its EMS production Potential value of approximately NOK 25 million in the first year of full production Production will
Slide 6: Important agreements in the second quarter
Major new orders: Important agreements in the second quarter Harris Awards Block Buy Contract to Kitron for F-35 Work In May, Kitron received a contract from Harris for production of Integrated Backplane Assembly (IBA) for the F-35 The contract covers an economic order quantity buy for productio
Slide 7: Financial statements First quarter and Q1 2019
Financial statements First quarter and Q1 2019
Slide 8: Revenue Q2: Strong revenue growth of 29%
Revenue Q2: Strong revenue growth of 29% Q 2 2019 vs Q 2 2018 S h ar e o f t o t al r e v e n u e In d u s try 1 5 ,4 % 3 9 ,1 % 860 813 667 563 739 D e fe n ce /A e ro s p a ce 5 3 ,5 % 2 1 ,0 % M e d ica l d e v ice s 6 ,4 % 1 6 ,6 % NOK MILLION 29,0% E n e rg y /T e le co m s 9 ,7 % 1 4 ,
Slide 9: Revenue First half year: Strong revenue growth of 26,9%
Revenue First half year: Strong revenue growth of 26,9% 2019 vs 2018 S h ar e o f t o t al r e v e n u e 1 673 In d u s try 1 4 ,4 % 4 0 ,7 % 1 318 1 235 D e fe n ce /A e ro s p a ce 3 0 ,3 % 1 9 ,3 % NOK Million M e d ica l d e v ice s 1 2 ,9 % 1 6 ,5 % 26,9% Q2-2017 Q2-2018 Q2-2019 E n e rg
Slide 10: Revenue by country Q2
Revenue by country Q2: Continued (strong) growth from several regions Q 2 2019 vs Q 2 2018 S h are o f t o t al re v e n u e N o rw a y 2 4 ,8 % 2 4 ,9 % 235 288 215 172 180 Sw eden 9 ,4 % 2 1 ,0 % 165 NOK Million 97 80 82 L ith u a n ia 2 2 ,5 % 3 3 ,5 % Norway Sweden Lithuania 12 USA Others
Slide 11: Revenue by country First half year
Revenue by country First half year: Continued (strong) growth from several regions 2019 vs 2018 S h are o f t o t al re v e n u e N o rw a y 2 8 ,5 % 2 5 ,2 % 489 578 422 354 Sw eden 7 ,6 % 2 1 ,1 % 329 329 190 NOK Million 129 150 L ith u a n ia 1 8 ,2 % 3 4 ,5 % 22 Norway Sweden Lithuania USA
Slide 12: Quarterly EBIT: Another quarter with improved profits
Quarterly EBIT: Another quarter with improved profits All time high Strong EBIT at 56,4 million, an increase of 25,0 per 56,4 cent compared to last year 51,2 45,5 45,0 43,1 42,3 38,8 EBIT margin was 6.6% (6.8%). 29,6 30,0 NOK Million 24,1% Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-201
Slide 13: EBIT by Country Q2
EBIT by Country Q2: Strong margin improvement in Norway and Sweden Another quarter with profitability improvements in EBIT Norway and Sweden 21,6 21,2 Norway for the first time reaching a month at/with 13,2 14,6 11,9 the targeted 7% margin this quarter 9,3 9,7 10,6 NOK Million Lithuania ramp-u
Slide 14: EBIT by Country First half year
EBIT by Country First half year: Strong margin improvement in Norway and Sweden Profitability improvements in Norway and Sweden 49,0 48,2 Value and margin 22,7 23,1 Lithuania ramp-up affects margins 15,7 15,6 14,6 NOK Million 14,9 0,3 China show strong profitability Norway Sweden Lithuania -
Slide 15: Balance sheet: Working capital and operating cash flow
Balance sheet: Working capital Operating cash flow Cash flow 53,5 Cash flow from operations 53,5 (42,7) 42,7 Working capital stabilized 25,3 % 25,4 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 NOK Million -26,8 Financial gearing -41,0 NIBD / EBITDA 2.9 (1.3) exclusive IFRS16 NIBD/EBITDA 2.6 N
Slide 16: Working capital – improvements expected
Working capital – improvements expected Procurement Lead Time Days from Components on allocation Raw materials Sub-suppliers 600 500 400 300 200 Million Nok 100 Q2 - 2018 Q3 - 2018 Q4 - 2018 Q1 - 2019 Q2 - 2019 Procurement Lead Time Days from Sub-suppliers 0 Average historical Lead Time Q2-2018 Q3-2
Slide 17: Market development
Market development
Slide 18: Market development: Backlog stabilizing at a high level
Market development: Backlog stabilizing at a high level Order backlog still strong with a growing Industry sector and strong growth for the Defence/Aeorspace and Offshore/Marine segment as expected Order Backlog Seasonal effects to Industry backlog 1 466 1 453 Comparable: 1 335 1 122 MNOK 1 453 (1
Slide 19: Outlook
Outlook
Slide 20: Outlook
Outlook For 2019, Kitron expects revenue to grow between NOK 3 200 and NOK 3 400 million. Earnings in value are above previous outlook, however EBIT margin is expected to be between 5.9 and 6.3 per cent. Stronger growth than expected due to ramp-up of customers temporarily drive inefficiency in
Slide 21: Thank you!
Thank you!