Kitron Asa · OSL:KIT

Kitron Asa — Q3 2005 Earnings Presentation

21 slides from Kitron Asa's earnings presentation, Oct 27, 2005

  1. Slide 1: Quarterly presentation Q3 2005

    Quarterly presentation Q3 2005 Kitron ASA 27 October 2005

  2. Slide 2: Falling sales

    Falling sales www.kitron.com „ Operating profit „ Satisfactory gross margin „ Weak pre-tax result „ Lower cost base – in line with target „ Simpler structure in Norway z Activities in Arendal concentrated at one site – manufacturing unit in Oslo shut down - one step ahead

  3. Slide 3: Highlights Q3

    Highlights Q3 www.kitron.com „ Operating income NOK 331.4 mill (2004: NOK 381.0 mill) „ Gross margin 39.6% (2004: 37.7%) „ EBITDA NOK 12.3 mill (2004: NOK 14.8 mill) „ EBIT NOK 4.1 mill (2004: NOK 5.3 mill) „ Cash flow from operations negative at NOK 17.1 mill (2004: negative at NOK 47.1 mill) „ Pre

  4. Slide 4: Financial information Q3 2005

    Financial information Q3 2005

  5. Slide 5: 2004 measures having desired effect

    2004 measures having desired effect www.kitron.com „ In line with Kitron’s plans z Costs cut by NOK 10.1 mill during the quarter z Total cost reduction of NOK 66.3 mill in first nine months „ Net financial expenses NOK 5.6 mill (2004: NOK 4.6 mill) z Currency loss came to NOK 1 mill z Further reduct

  6. Slide 6: Interim report Q3 2005

    Interim report Q3 2005 www.kitron.com Profit & loss (NOK mill) Q3 2005 Q3 2004 30.09.2005 30.09.2004 31.12.2004 Operating income 331,4 381,0 1 132,9 1 286,9 1 748,0 Cost of material 200,3 237,3 672,8 779,2 1 062,1 Gross profit margin 39,6 % 37,7 % 40,6 % 39,5 % 39,2 % Payroll expences 91,1 95,9 336,

  7. Slide 7: Highlights – balance sheet

    Highlights – balance sheet www.kitron.com „ Total balance sheet of NOK 602.5 mill (2004: NOK 727.8 mill) „ Equity NOK 168.7 mill (NOK 145.4 mill) z Equity of 28.0% „ Capital tied up in inventory cut to NOK 248.7 mill (2004: NOK 303.9 mill) „ Accounts receivable of NOK 109.9 mill (2004: NOK 162.6 mil

  8. Slide 8: Balance sheet – Assets

    Balance sheet – Assets www.kitron.com Balance sheet (NOK mill) 30.09.2005 30.09.2004 31.12 2004 Deferred tax credits 20,0 20,0 20,0 Other intangible fixed assets 19,6 19,2 21,7 Fixed assets 108,4 123,4 120,6 Financial assets 6,6 13,1 8,5 Total fixed assets 154,6 175,7 170,8 Inventory 248,7 303,9 246

  9. Slide 9: Balance sheet – liabilities and shareholders’ equity

    Balance sheet – liabilities and shareholders’ equity www.kitron.com Liabilities and shareholders' equity 30.09.2005 30.09.2004 31.12 2004 Paid-in equity 155,7 133,5 116,7 Retained earnings - - - Minority interests 13,0 12,0 12,6 Total shareholders equity 168,7 145,4 129,2 Pension commitments 31,9 35

  10. Slide 10: Cash flow and shareholders’ equity

    Cash flow and shareholders’ equity www.kitron.com Cash flow statement (NOK mill) Q3 2005 Q3 2004 30.09.2005 30.09.2004 31.12.2004 Net cash flow from operational activities -17,1 -47,1 -55,5 -115,6 -33,0 Net cash flow from investment activities -6,6 -3,8 -11,4 -9,5 -23,7 Net cash flow from financing

  11. Slide 11: Market development

    Market development www.kitron.com „ Limited growth in Nordic EMS market z No expansion in Norway – limited availability of new products with large volume z Growth in Sweden – Kitron’s build-up expected to yield increased market share z Tough competition „ Increased interest in outsourcing more stage

  12. Slide 12: Order backlog

    Order backlog www.kitron.com - one step ahead

  13. Slide 13: Cutting costs through simpler structure

    Cutting costs through simpler structure

  14. Slide 14: Background

    Background www.kitron.com „ Falling sales over a long period z Reduced demand in the market z More competition, particularly from Sweden, eastern Europe and Asia z Increased pressure on prices Excess capacity in the Norwegian business „ No growth expected in Norway over coming years z Must adapt to

  15. Slide 15: Five key questions

    Five key questions www.kitron.com „ What is the necessary and sufficient capacity? „ Which customers have the biggest potential in relation to profitability? „ Which customers should be given priority? „ Which customers can be moved, and where to? „ Moving costs and necessary investment in premises?

  16. Slide 16: From three to one factory for Kitron AS

    From three to one factory for Kitron AS www.kitron.com „ Production in Oslo terminated „ Production in Arendal concentrated at Hisøy „ Development activities left unchanged „ Improvement measures will also be considered for the Swedish business - one step ahead

  17. Slide 17: Smaller cost base

    Smaller cost base www.kitron.com „ Closure of Oslo plant gives annual savings of NOK 29 mill z 45 jobs cut „ Concentrating production at Hisøy gives annual savings of NOK 22 mill z 55 jobs cut (at both Kilsund and Hisøy) „ Provision of NOK 55 mill charged to Q4 2005 accounts - one step ahead

  18. Slide 18: Notice to EOGM – share issue

    Notice to EOGM – share issue www.kitron.com „ The board of directors of Kitron ASA call in for an extraordinary general meeting on Friday 18 November 2005 „ UAB Hermis Capital and Kongsberg Gruppen ASA will participate in any possible share issue „ The board of directors asks for authorisation to in

  19. Slide 19: Prospects

    Prospects

  20. Slide 20: A more robust Kitron

    A more robust Kitron www.kitron.com „ Smaller cost base „ Structural measures needed to achieve profitability „ Kitron’s Lithuanian business becoming ever more important „ Norway and Sweden will remain main markets „ Continued commitment to microelectronics - one step ahead

  21. Slide 21: Kitron - One step ahead

    Kitron - One step ahead

Kitron — Q3 2005 Earnings Presentation on 6ix