Kitron Asa · OSL:KIT
Kitron Asa — Q2 2006 Earnings Presentation
25 slides from Kitron Asa's earnings presentation, Aug 16, 2006
Slide 1: Quarterly presentation Q2 2006
Quarterly presentation Q2 2006 Kitron ASA 16 August 2006
Slide 2: High level of activity during Q2
High level of activity during Q2 www.kitron.com Operating profits in both business areas Temporary reduction in turnover Linked to work in moving and collocating in Kitron AS. One week's downtime (MNOK -20) – the move is now completed Completion of certain production orders has been delayed to Q3 La
Slide 3: Organisational changes in Q2
Organisational changes in Q2 www.kitron.com Carl Espen Wollebekk new chairman – replaced Nerijus Dagilis who is continuing as a member of the Board of Directors Ian Hague new member of the Board of Directors – replaced Per-Erik Mohlin Arne Solberg and Kjell Almskog reelected as members of the Board
Slide 4: Financial information for Q2 2006
Financial information for Q2 2006
Slide 5: Key items Q2
Key items Q2 www.kitron.com Operating income MNOK 395.2 (MNOK 421.6) MNOK 828.4 in the first half year (MNOK 801.5) Satisfactory gross profit 40.7% (40.5%) EBITDA MNOK 12.6 (MNOK 16.3) EBIT MNOK 5.7 (MNOK 6.4) MNOK 26.3 in the first half year (MNOK 5.1) Strong order reserve: MNOK 908 (MNOK 746) Net
Slide 6: Profit/(loss) account Q2 2006
Profit/(loss) account Q2 2006 www.kitron.com Profit/(loss) (NOK mill) Q2 2006 Q2 2005 30.06.2006 30.06.2005 31.12.2005 Operating income 395,2 421,6 828,4 801,5 1 576,3 Cost of material 234,6 250,7 495,4 472,5 945,3 Gross profit margin 40,7 % 40,5 % 40,2 41 40,0 % Payroll expences 120,2 123,6 237,9 2
Slide 7: Key items – balance sheet
Key items – balance sheet www.kitron.com Equity MNOK 164.0 (MNOK 167.4) Equity ratio 24.5 per cent (28.3 per cent) Total balance MNOK 668.5 (MNOK 590.8) Capital tied up in stocks MNOK 282.2 (MNOK 231.0) Trade debtors and other receivables MNOK 171.5 (MNOK 172.4) Trade debtors MNOK 122.2 (MNOK 111.2)
Slide 8: Balance sheet – assets
Balance sheet – assets www.kitron.com Balance sheet (NOK mill) 30.06.2006 30.06.2005 31.12.2005 Tangible fixed assets 122,0 110,0 112,4 Goodwill 19,1 18,5 18,5 Investment i shares 0,2 0,2 0,2 Deferred tax assets 20,0 20,0 20,0 Other receivables 3,0 7,3 3,9 Total fixed assets 164,4 155,9 155,0 Invent
Slide 9: Balance sheet – equity and liabilities
Balance sheet – equity and liabilities www.kitron.com Liabilities and equity (NOK mill) 30.06.2006 30.06.2005 31.12.2005 Equity 164,0 154,6 151,1 Minority interests 12,8 0,0 Total equity 164,0 167,4 151,1 Loans 35,3 38,8 40,7 Pension commitments 15,7 31,9 14,9 Provision for liabilities and charges 1
Slide 10: Cash flow and changes in consolidated equity
Cash flow and changes in consolidated equity www.kitron.com Cash flow statement (NOK mill) (*) Q2 2006 Q2 2005 30.06.2006 30.06.2005 31.12.2005 Net cash flow from operational activities (**) -11,0 -6,8 -84,9 -35,1 9,4 Net cash flow from investment activities -25,8 -1,2 -27,9 -4,8 -39,5 Net cash flow
Slide 11: Market developments
Market developments
Slide 12: Kitron's market in Q2
Kitron's market in Q2 www.kitron.com Increasing number of invitations to tender and new orders More prototype productions Continued strengthened interest in development and total delivery orders Larger degree of outsourcing gives access to more parts of the value chain The investment in becoming a c
Slide 13: Order reserve by country
www.kitron.com Country 30.06.2006 30.06.2005 Norway 659.4 536.8 Sweden 235.5 201.6 Lithuania (external) 12.9 7.6 Total 907.8 746.0 13 - one step ahead
Slide 14: Defence/Marine
Defence/Marine www.kitron.com Reduced activity since Q2 2005 Reduced turnover in Defence sector Higher turnover in Marine sector Lower turnover in Defence/Marine sectors than in 2005 expected for the year as a whole Marine sector expected to continue growing – based on high oil prices 14 - one step
Slide 15: Data/Telecom
Data/Telecom www.kitron.com Less activity than in Q2 2005 Production of high-volume products transferred to Asia (Nera and Tandberg Data) Growth in Microelectronics Infrastructure for optical networks Monitoring cameras Increasing business for Q-Free 15 - one step ahead
Slide 16: Medical Equipment
Medical Equipment www.kitron.com Greater activity than in Q2 2005 General growth in the segment Keen interest in production of turnkey products (High Level Assembly) Strong growth in the number of offers in Sweden 16 - one step ahead
Slide 17: Industry
Industry www.kitron.com Greater activity than in Q2 2005 Increased production on existing customers Increased number of offers expected to contribute to further growth in turnover Microelectronics meets more business in automotive 17 - one step ahead
Slide 18: Good market prospects
Good market prospects www.kitron.com Market growth of 10 – 12 per cent is expected up to 2010 Increased degree of outsourcing (expected to go from 25% to 30% up to 2010) Increased degree of product development - and prototype production New products Increased volume in existing products The customer
Slide 19: A more efficient Kitron
A more efficient Kitron
Slide 20: Strengthening marketing effort
Strengthening marketing effort www.kitron.com Stronger sales organisation Analysis Coordination Increased lateral collaboration in Kitron Greater torque in marketing work Better transfer of experience Better offering to the market Internal synergies 20 - one step ahead
Slide 21: Ensure better capacity utilisation
Ensure better capacity utilisation www.kitron.com Better capacity utilisation in every sites by tuning: The mix of products The mix of customers Increase capacity in production and introduction of new products (NPI) To meet increases demand To free capacity for normal production Better collaboration
Slide 22: More efficient operation
More efficient operation www.kitron.com Right geographic positioning of production orders Orders through a larger slice of the value chain Increase effort on building profile and development of competence Selective choice of production orders/customers Better production planning Better logistics - a
Slide 23: Outlook
Outlook
Slide 24: Good opportunities
Good opportunities www.kitron.com Positive market trends Purposeful selling More production orders and more invitations to tender Strengthened inflow of orders and order reserves Sales and marketing effort is being reinforced Producing for a larger part of the value chain Further strengthen and buil
Slide 25: Kitron - One step ahead
Kitron - One step ahead