Kitron Asa · OSL:KIT

Kitron Asa — FY2015 Earnings Presentation

18 slides from Kitron Asa's earnings presentation, Feb 11, 2016

  1. Slide 1: Full year and Q4 results 2015

    Full year and Q4 results 2015 Peter Nilsson, CEO Cathrin Nylander, CFO February 11th, 2016

  2. Slide 2: Seventh consecutive quarter with improved profitability

    Financial highlights Q4: Seventh consecutive quarter with improved profitability  Double-digit revenue growth NOK mill. Q4 2015 vs Q4 2014 in spite of declining revenues in offshore/marine sector Revenue 524,6  10,1 %  Continued profitability EBIT 33,6  134,7 % improvement  EBIT margin 6.4% Ord

  3. Slide 3: Significantly improved profitability and cash flow

    Financial highlights full year: Significantly improved profitability and cash flow  Double-digit revenue growth NOK mill. 2015 vs 2014 in spite of declining revenues in offshore/marine sector Revenue 1951,8  11,4 %  Continued profitability EBIT 102,7  242,0 % improvement  EBIT margin 5.3% Order

  4. Slide 4: Important orders in the fourth quarter

    Major new orders: Important orders in the fourth quarter  Kitron signs agreement with global energy company  The company headquartered in the US for and Kitron will deliver prototypes and serial manufacturing for a specific product family of power controllers  The agreement is valid for three yea

  5. Slide 5: Adjusted dividend policy and dividend

    Highlights: Adjusted dividend policy and divided  Following a fundamental strengthening of Kitron’s business, with an improved profitability and successful programs to improve the working capital, the Board has decided to adjust the dividend policy :  Adjusted policy  “Kitron’s dividend policy is

  6. Slide 6: Facility upgrades and relocations in Sweden and Norway

    Highlights: Facility upgrades and relocations in Sweden and Norway  Sweden  Kitron has decided to relocate the Swedish operations to facility that will be built specifically for Kitron in Torsvik, close to current facility in Jönköping. The new facility will feature 30% more footprint to ensure gr

  7. Slide 7: Financial statements full year and Q4 2015

    Financial statements full year and Q4 2015 7

  8. Slide 8: Strong growth in other sectors offsets decline in Offshore/Marine

    Revenue Q4: Strong growth in other sectors offsets decline in Offshore/Marine Q4 2015 vs Q4 2014 Share of total revenue 525 Offshore/Marine -27,3 %  6,8 % 489 Medical equipment 9,5 %  27,7 % 476 471 468 Defence/Aerospace 16,2 %  25,0 % 10.1 % Energy/Telecoms 28,3 %  13,0 % NOK million Industry 1

  9. Slide 9: Strong growth – robust mix of industries

    Revenue full year: Strong growth – robust mix of industries 2015 vs 2014 Share of total revenue Revenue four quarters Offshore/Marine -43,9 %  7,0 %  1 952 Medical equipment 5,8 % 24,2 % 1 632 1 751 Defence/Aerospace 45,3 %  27,4 % 11.4 % Energy/Telecoms 21,6 %  13,8 % NOK million 2013 2014 2015

  10. Slide 10: Solid Growth – Norway absorbs offshore decline

    Revenue by country full year*: Solid Growth – Norway absorbs offshore decline 2015 vs 2014 Share of total revenue 858 859 Norway 0,2 %  39,0 % 2014 2015  483 472 Sweden 10,9 % 22,0 % 436 419 387  239 Lithuania 12,6 % 21,4 % NOK million Others 61,7 %  17,6 % Year Norway Sweden Lithuania Others 10

  11. Slide 11: Seventh consecutive quarter of improved profitability

    Quarterly EBIT: Seventh consecutive quarter of improved profitability  Improvement in both nominal value 33.6 as well as EBIT margin 26.3  Stable sales quarter-on-quarter 20.8 22.1 14.3  Strong contribution from service sales, both from development and engineering 2.0 6.9 6.9 NOK million 1580.0 %

  12. Slide 12: Strong improvement

    EBIT by country full year: Strong improvement EBIT*  Norway 36,7 32,7 NOK million  Cost reduction actions continue to yield 26,5 27,0 results 23,5  Sweden 14,5  Significantly improved margins and 6,6 revenue growth  Lithuania  Reduction due to higher indirect cost and pressure on margins -10,0

  13. Slide 13: Significantly improved cash flow

    Balance sheet: Significantly improved cash flow Operating cash flow NOK million  Cash flow 87.8  Q4 Cash flow MNOK 87.8 (12.9)  YTD Cash flow MNOK 204 (-4.8) 48.6  Improved profitability and reduced 35.0 32.7 working capital 581.6 % 12.9 Net working capital  Working capital NOK million  Downwa

  14. Slide 14: Market development

    Market development www.kitron.com

  15. Slide 15: Diversified growth

    Order backlog: Diversified growth Order Backlog MNOK Order backlog  976 vs. 868 December last year NOK million (increase of 12.3%) 976  Defence: 423 +17% (363)  Medical: 148 +9% (137) 916  Industry: 286 +52% (188)  Telecom: 96 +15% (84) 868 855  Offshore: 23 -76% (98) 830 12.3 % Q4 2014 Q1 201

  16. Slide 16: Outlook

    Outlook www.kitron.com

  17. Slide 17: 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

  18. Slide 18: Thank you!

    4 Kitron Your ambition. Our passion. Thank you!

Kitron — FY2015 Earnings Presentation on 6ix