Kitron Asa · OSL:KIT

Kitron Asa — Q3 2017 Earnings Presentation

19 slides from Kitron Asa's earnings presentation, Oct 24, 2017

  1. Slide 1: First three quarter and Q3 results 2017

    First three quarter and Q3 results 2017 Peter Nilsson, CEO Cathrin Nylander, CFO 24 October, 2017

  2. Slide 2: Financial highlights Q3: Continued strong growth

    Financial highlights Q3: Continued strong growth  Strong revenue growth NOK mill. Q3 2017 vs Q3 2016  Underlying growth 16.8% Revenue 535,4  15,7 %  EBIT margin 5.5% (6.5%)  Affected by restructuring in Norway EBIT 29,2  -2,9 %  Higher share of revenue of products with high material Order bac

  3. Slide 3: Financial highlights First three quarter: Continued strong growth

    Financial highlights First three quarter: Continued strong growth  Strong revenue growth NOK mill. 2017 vs 2016  Underlying growth 18.6% Revenue 1769,2  16,2 %  Strong profitability  EBIT margin 6.0% (5.5%) EBIT 105,6  26,1 %  Solid order backlog Order backlog 1008,0  2,9 %  Net working cap

  4. Slide 4: Investment in US

    Highlights: Investment in US  Over the past years, Kitron has invested in manufacturing capacity and capabilities, ensuring resources that are modern, highly competitive and able to handle expected growth.  During the third quarter Kitron invested in a Surface Mount Technology (SMT) line in Johnst

  5. Slide 5: Active management of component availability

    Highlights: Active management of component availability  The demand for electronic components increased in 2017, driven especially by the automotive industry and IoT. However, the electronic components manufacturers’ capacity has not increased at the same rate.  Kitron has not been markedly affect

  6. Slide 6: Financial statements First three quarter and Q3 2017

    Financial statements First three quarter and Q3 2017 6

  7. Slide 7: Continued strong growth in Industry and Energy/Telecoms

    Revenue Q3: Continued strong growth in Industry and Energy/Telecoms 649 Q3 2017 vs Q3 2016 Share of total revenue 570 585 535 Industry 51,4 %  37,6 %  463 Defence/Aerospace -7,3 % 24,4 % Medical devices -1,4 %  20,2 % 15.7 % Energy/Telecoms 25,9 %  16,9 % NOK million Offshore/Marine -35,8 %  0,

  8. Slide 8: Continued strong growth in several sectors

    Revenue First three quarter: Continued strong growth in several sectors 2017 vs 2016 Share of total revenue Revenue first three quarter 1 769 Industry 32,9 %  37,9 % 1 427 1 523 Defence/Aerospace 17,1 %  27,5 % Medical devices -8,0 %  17,9 % 16.2 % Energy/Telecoms 23,5 %  15,4 % NOK million 2015

  9. Slide 9: Continued strong growth in Lithuania

    Revenue by country Q3*: Continued strong growth in Lithuania Q3 2017 vs Q3 2016 Share of total revenue Norway -3,9 %  25,6 % 156 150 157 174 Q3/2016 Q3/2017  140 129 Sweden 12,6 % 26,9 % 103 104 Lithuania 34,7 %  29,8 % Others 1,0 %  17,8 % NOK million Norway Sweden Lithuania Others 9

  10. Slide 10: Continued strong growth in Lithuania and Sweden

    Revenue by country First three quarter*: Continued strong growth in Lithuania and Sweden 2017 vs 2016 Share of total revenue  596 Norway -3,3 % 28,1 % 565 546 2016 2017 514 475  416 Sweden 23,6 % 26,4 % 288 273 Lithuania 25,4 %  30,7 % NOK million Others 5,7 %  14,8 % Norway Sweden Lithuania Oth

  11. Slide 11: EBIT margin affected by restructuring in Norway

    Quarterly EBIT: EBIT margin affected by restructuring in Norway  Higher share of revenue 45,5 of products with high material content in Q3 33,6 33,1 34,1 30,1 30,8 29,2 26,3  Inefficiencies due to relocations in Q1 and 20,5 Q4 2016 and Q1 2017 NOK million  Profitability in Q1 2016 11.3 % includes

  12. Slide 12: Norway affect profits

    EBIT by country Q3: Norway affect profits  Norway EBIT*  Restructuring causing inefficiency in 10,6 10,3 production 9,4  Higher share of revenue of products 8,1 8,1 with high material content 6,9  Sweden 5,7  Higher share of revenue of products with high material content 1,9  Lithuania  EBIT

  13. Slide 13: Profits improvements

    EBIT by country First three quarter: Profits improvements  Norway EBIT* 47,4  Cost reductions drives margin improvement. Relocation Q1 2016. 38,5  Sweden  Efficiency challenges and relocation in 25,5 23,5 Q1 2017, improved Q2 21,9 19,7 21,5  Lithuania 16,5  EBIT improvement driven by strong re

  14. Slide 14: Cash flow and working capital

    Balance sheet: Cash flow and working capital Operating cash flow  Cash flow NOK million 63,1  Q3 Cash flow MNOK 22.4 (36.3) 36,4 36,4  YTD Cash flow MNOK 70.0 (72.1) 22,4 -38.5 %  Low financial gearing -15,5  NIBD / EBITDA 0.9 (1.3) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017  Working capital Net

  15. Slide 15: Market development

    Market development www.kitron.com

  16. Slide 16: Solid order backlog

    Order backlog: Order backlog Solid order backlog NOK million Order backlog MNOK  1008 vs. 980 last year. Increase of 1 059 2.9% with 0.4% underlying growth.  Defence: 347 -17% (418) 1 019 1 018  Medical: 182 +-0% (182) 1 008  Industry: 358 +40% (255)  Energy/Telecom: 105 -5% (111) 980  Offshor

  17. Slide 17: Outlook

    Outlook www.kitron.com

  18. Slide 18: Outlook

    Outlook  For 2017, Kitron expects revenue to grow to between NOK 2 150 and 2 350 million. EBIT margin is expected to be between 5.6 and 6.4 per cent.  Revenue is now expected to be in the higher end or slightly above indicated range.  The growth is primarily driven by customers in the Industry se

  19. Slide 19: Thank you!

    4 Kitron Your ambition. Our passion. Thank you!

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