Kitron Asa · OSL:KIT

Kitron Asa — Q1 2018 Earnings Presentation

17 slides from Kitron Asa's earnings presentation, Apr 20, 2018

  1. Slide 1: Q1 results 2018

    Q1 results 2018 Peter Nilsson, CEO Cathrin Nylander, CFO 20 April, 2018

  2. Slide 2: Solid growth and improved profitability

    Financial highlights Q1: Solid growth and improved profitability NOK mill.  Strong revenue growth Q1 2018 vs Q1 2017  Underlying growth 8.9% Revenue 651,3  11,3 %  EBIT margin 6.0% (5.3%) EBIT 38,8  25,6 %  Order backlog growth  Seasonal cash flow Order backlog 1161,0  10,0 %  Net working c

  3. Slide 3: Important agreements in the first quarter

    Major new orders: Important agreements in the first quarter  Kitron receives EUR 17 million industry order  In February, Kitron has received an order for manufacturing related to a new industrial product line.  The total amount is approximately EUR 17 million over a four-year period  Production

  4. Slide 4: Peter Nilsson, Kitron's CEO, comments

    Peter Nilsson, Kitron's CEO, comments:  We’re seeing demand increase in all regions and most market sectors.  In the first quarter of 2018 Kitron won more than 30 new programs worth more than 230 MNOK of annualized revenue (75M ’17Q1). 70% of the programs came from existing customers while the oth

  5. Slide 5: Active management of component availability

    Active management of component availability  Shortages of electronic components made 2017 a challenging year for many companies in the Electronics Manufacturing Services business.  These challenges have continued into 2018 and are expected to last throughout the year.  Kitron’s timely and systema

  6. Slide 6: Financial statements Q1 2018

    Financial statements Q1 2018 6

  7. Slide 7: New accounting standard implemented

    IFRS 15: New accounting standard implemented  IFRS 15 implemented 1.1.2018  Over time revenue recognition (point in time)  Marginal effects on P&L  Re-classification within NWC in balance sheet  Order backlog adjustment  See note 5 for complete overview 7

  8. Slide 8: Sector growth in line with expectations

    Revenue Q1: Sector growth in line with expectations Q1 2018 vs Q1 2017 Share of total revenue 585 649 668 651 Industry 35.4 %  46.6 %  535 Defence/Aerospace -21.1 % 19.9 % Medical devices 8.7 %  16.9 % 11.3 % Energy/Telecoms 12.1 %  15.3 % NOK million Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Offs

  9. Slide 9: Continued strong growth in Lithuania and China

    Revenue by country Q1*: Continued strong growth in Lithuania and China Q1 2018 vs Q1 2017 Share of total revenue Norway -13.4 %  23.5 % Sweden -3.6 %  23.1 % Lithuania 25.3 %  39.3 % Others 7.6 %  14.1 % 9

  10. Slide 10: Profits stabilizing on a higher level

    Quarterly EBIT: Profits stabilizing on a higher level  Improvements in 45.5 43.1 efficiency 38.8 33.1 34.1  Component allocations 30.1 30.8 29.2 have not had significant impact on 20.5 results NOK million 89.1 % Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Margin 4.1 % 5

  11. Slide 11: Lithuania drives profits

    EBIT by country Q1: Lithuania drives profits EBIT* 27.4  Lithuania shows strong EBIT improvement, both in value and 19.9 margin  Sweden improves from last year, margins still below ambition but 8.1 6.4 7.2 according to expectations 5.2 4.0 1.6  Norway and US affected by Q1 2017 Q1 2018 Defence pr

  12. Slide 12: Seasonal effects

    Balance sheet: Operating cash flow Seasonal effects NOK million 90.8  Cash flow 63.1  Q1 Cash flow MNOK -19.5 (-15.5)  Low NWC at end of Q4 2017 22.4  Build up for Q2 -15.5 -25.7 % -19.5 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018  Low financial gearing  NIBD / EBITDA 0.8 (1.3) Net working capital

  13. Slide 13: Market development

    Market development www.kitron.com

  14. Slide 14: Solid order backlog

    Market development: Solid order backlog Order backlog Order backlog (comparable) NOK million 1 306  MNOK 1161 (1059) 1 161  Growth of 10% 1 059 1 018  Defence: 422 -10% 1 008  Medical: 132 -7%  Industry: 402 +47%  Energy/Telecom: 184 +13%  Offshore: 20.5 +51%  IFRS adjusted: MNOK 1025 10 % Q

  15. Slide 15: Outlook

    Outlook www.kitron.com

  16. Slide 16: Outlook

    Outlook  For 2018, Kitron expects revenue to grow to between NOK 2 500 and 2 700 million. EBIT margin is expected to be between 6.1 and 6.5 per cent.  The growth is primarily driven by customers in the Industry sector and the Energy / Telecom sector.  The profitability is driven by cost reduction

  17. Slide 17: Thank you!

    4 Kitron Your ambition. Our passion. Thank you!

Kitron — Q1 2018 Earnings Presentation on 6ix