Kitron Asa · OSL:KIT
Kitron Asa — Q1 2008 Earnings Presentation
19 slides from Kitron Asa's earnings presentation, Apr 29, 2008
Slide 1: Presentation Q1 2008
Presentation Q1 2008 29 April 2008 Jørgen Bredesen, CEO Erling Svela, CFO
Slide 2: Stable profit and strong order intake
Stable profit and strong order intake Revenue growth of 1.9% • Fewer manufacturing days than in Q1 2007 • Higher activity in Lithuania Stable profit before tax • MNOK 16.2 (MNOK 15.7) Order intake increased by 10% Increased gross margin to 39.8% (37.7%) Cash flow better than 2007 (less seasonally ne
Slide 3: Financial statements Q1 2008
Financial statements Q1 2008
Slide 4: Good and stable performance
Good and stable performance Revenue grew 1.9%, to MNOK 495.1 (MNOK 485.7) Improved gross margin 39.8% (37.7%) Increased labour content (product mix) EBITDA MNOK 30.5 (MNOK 28.9) EBIT MNOK 21.6 (MNOK 21.4) • Higher depreciation reflecting investments Net financial items MNOK 5.5 (MNOK 5.8) Profit bef
Slide 5: Profit/(loss) statement
(Figures in NOK 1 000) Q1 2008 Q1 2007 31.12.2007 Revenue 495 076 485 691 1 937 780 Cost of materials 297 999 302 453 1 195 561 Gross profit margin 39.8% 37.7% 38.3% Payroll expenses 134 382 126 174 496 199 Other operational expenses 32 205 28 205 129 028 Operating profit before depreciation and imp
Slide 6: Higher activity – increased balance sheet
Higher activity – increased balance sheet Total balance sheet MNOK 979.6 (MNOK 907.7) • Reflecting higher activity level Stable inventory MNOK 304.0 (MNOK 298.9) • Inventory turns (rolling annual) 6.8 Available liquidity MNOK 84.2 (MNOK 47.3) Equity MNOK 262.5 (MNOK 185.7) • Equity ratio 26.8% (21.9
Slide 7: Assets
Assets Investments in machinery and equipment continue Deferred tax assets adjusted at yearend 2007 Inventory stable (preparing for Q2), annual rolling 6.8 turns Available cash improved because of less overdraft (on liability side)
Slide 8: Equity and liabilities
Equity and liabilities Equity increased MNOK 63.5 (since Q1 2007) because of operational profit Adequate equity ratio at 26.8% (21.9%) Less overdraft
Slide 9: Cash flow
Cash flow Cash flow improved versus Q1 2007 (seasonally negative) Available liquidity increased to MNOK 84.2 (MNOK 47.3 )
Slide 10: Business area reporting
Business area reporting Microelectronics business has blended with the EMS business at large Kitron’s Electronic Manufacturing Services: • Products at variable degree of completion: Electronics – box-build – high-level assembly (HLA) • Manufacturing techniques as appropriate: Conventional printed ci
Slide 11: Market development
oureomtone esto succes: KitrOn Market development
Slide 12: Order intake (NOK million)
NOK million Q 1 250 300 350 400 450 500 550 600 650 20 Q 04 2 20 Q 04 3 20 Q 04 4 20 Q 04 1 20 Q 05 2 20 Q 05 3 20 Q 05 4 Total Order intake variable, 20 Q 05 1 20 Q 06 2 20 Q 06 3 20 Q 06 4 4Q average 20 Q 06 1 20 Q 07 2 20 Q 07 3 20 Q 07 4 20 Q 07 1 20 08 last two quarters suggesting a higher leve
Slide 13: Increased order backlog
Increased order backlog Order backlog includes • All firm orders • Four months’ customer forecast • Frame agreements etc not counted in
Slide 14: Order backlog per segment
Order backlog per segment ORDER BACKLOG BUSINESS AREAS Data/ Defence/ Medical NOK million Telecom Marine — equipment Industry Total “Norway 143.1 Lithuania 14.2 361 37.7 20.6 105.8 cursotaoetman ace <Q Kitron
Slide 15: Market segments
Market segments Data/Telecom • Strong growth 2006 to 2007, now showing a weaker trend • Adding capacity to satisfy shorter delivery times to attract additional orders Defence/Marine • Favourable development in 2007 continues into 2008 • Promising outlook, particularly for Kitron Arendal and Kitron K
Slide 16: Outlook
oureomtone esto succes: KitrOn Outlook
Slide 17: Expanding capacity
Expanding capacity Market growth expected to continue Growth ambition of 10% annual organic growth Continuously driving for productivity increases Machinery upgrades on same level as 2007 Pressure on margins expected to be compensated by higher productivity
Slide 18: Nordic EMS industry
Nordic EMS industry Variable results and lower share prices suggesting restructuring opportunities Kitron has a strategic ambition to take a proactive and leading role: • Build organizational capability • Do tactical acquisitions (e.g. EDC’s Lithuanian subsidiary in 2007) • Initiate strategic merger
Slide 19: Questions, comments?
Questions, comments? Pete Ss Viel ada g Kitron