Kitron Asa · OSL:KIT

Kitron Asa — Q4 2014 Earnings Presentation

19 slides from Kitron Asa's earnings presentation, Feb 11, 2015

  1. Slide 1: Q4 results 2014

    Q4 results 2014 Peter Nilsson, CEO Cathrin Nylander, CFO February 11, 2015

  2. Slide 2: Initiatives yield improved profitability

    Financial highlights for Q4: Initiatives yield improved profitability  Revenue at last year’s level NOK mill. Q4 2014 vs Q4 2013  Profitability improved, all sites profitable in Q4 Revenue 476,3  0,0 %  Strong order backlog  Negative development of EBIT 14,3  234,5 % operating cash flow and ne

  3. Slide 3: Important orders in the fourth quarter

    Major new orders: Important orders in the fourth quarter  Orders from leading company in offshore industry  Kitron AS received orders within the offshore industry worth approximately MNOK 25.  Will be fulfilled during 2015.  Helps secure revenue in 2015, as offshore sector is experiencing reduce

  4. Slide 4: Improved profitability in the quarter

    Operational information: Improved profitability in the quarter  All sites profitable  Arendal, Norway, initiatives to improve profitability yield results.  Johnstown, US, have successfully ramped up revenue by approximately 50% compared to second and third quarter this year.  Jönköping, Sweden,

  5. Slide 5: Kitron invests in Arendal operations

    Additional information: Kitron invests in Arendal operations  Move to Kilsund  In December it was decided to move the Arendal operations from Hisøy to Kilsund, both locations in Arendal, Norway.  Hisøy plant leased, Kilsund plant owned and Kitron’s main production facility from 1995- 2005.  Inve

  6. Slide 6: Financial statements Q4 2014

    Financial statements Q4 2014 6

  7. Slide 7: Strong Industry growth in the fourth quarter

    Revenue: Strong Industry growth in the fourth quarter Q4 2014 vs Q4 2013 Share of total revenue Offshore/Marine -30,7 %  10,3 % Medical equipment 1,7 %  27,9 % Defence/Aerospace -3,3 %  23,7 % Energy/Telecoms 4,9 %  11,1 % Industry 19,5 %  27,0 % 7

  8. Slide 8: Continued strong growth outside Scandinavia

    Revenue by country*: Continued strong growth outside Scandinavia 274 Q4 2014 vs Q4 2013 Share of total revenue Norway -17,8 %  42,6 % 225 Q4/2013 Q4/2014 Sweden 12,1 %  23,3 % 123 109  110 Lithuania 27,7 % 20,6 % 85 72 46 Others 56,5 %  13,5 % NOK million Norway Sweden Lithuania Others * Before

  9. Slide 9: Improved profitability

    EBIT: Improved profitability  EBIT margin improved compared to last four quarters  Cost reduction activities yield results in Arendal  All sites profitable 9

  10. Slide 10: All sites profitable

    EBIT by country: All sites profitable  Norway  Includes one-off of MNOK 6.9  Sweden  EBIT margin improved in the quarter  Lithuania  Revenue growth from existing customers and new orders  Other  China and US now both have positive EBIT  One-off of MNOK 8.7 regarding distribution centre in Q

  11. Slide 11: Negative development of cash flow and working capital

    Balance sheet: Negative development of cash flow and working capital Operating cash flow  Cash flow decrease  Temporary inventory increase, primarily NOK million project deliveries in work-in-process 51,5 phase - 75,0 % 12,9  Working capital increase 9,5 -9,7  Cash conversion cycle increased -17

  12. Slide 12: Financial highlights 2014

    Financial highlights 2014 12

  13. Slide 13: Full year profitability improvement

    Financial highlights for Q4: Full year profitability improvement  Revenue growth NOK mill. 2014 vs 2013   EBIT improvement Strong order backlog Revenue 1751,3  7,3 %  Negative development of operating cash flow and net EBIT 30,0  19,6 % working capital Order backlog 868,4  20,9 %  The board

  14. Slide 14: Market development

    Market development www.kitron.com

  15. Slide 15: Strong development in Defence and Energy/Telecoms, reductions in Marine & Offshore

    Order backlog: Strong development in Defence and Energy/Telecoms, reductions in Marine & Offshore  Defence  Increased by 66% (MNOK 144.7) from last year  Due to previously announced large orders for the US and Norwegian markets  Energy/Telecoms  Increase of 41% (MNOK 24.5)  Offshore/Marine  R

  16. Slide 16: Market development

    Market development  Offshore/Marine  General adjustment in the oil service market in Norway  Medical equipment  Stable development  Defence/Aerospace  Strong growth and positive outlook  Energy/Telecoms  Growth in backlog and positive outlook  Industry  Continues to grow, increased revenue

  17. Slide 17: Outlook

    Outlook www.kitron.com

  18. Slide 18: Outlook

    Outlook  For 2015, Kitron expects growth and a clear improvement in profitability. However during first quarter the revenue outlook is slightly down sequentially due to seasonality.  Growth driven by increased demand in Defence sector for US and Norwegian markets, as well as increases in Energy/Te

  19. Slide 19: Thank you!

    4 Kitron Your ambition. Our passion. Thank you!

Kitron — Q4 2014 Earnings Presentation on 6ix