Kitron Asa · OSL:KIT
Kitron Asa — Q2 2008 Earnings Presentation
10 slides from Kitron Asa's earnings presentation, Aug 15, 2008
Slide 1: Profit increase of 100% in Q2
Second quarter and first half year 2008 15 August 2008 Jørgen Bredesen, CEO Björn Wigström, CFO Profit increase of 100% in Q2 Revenue growth of 20.1% • Higher activity at all manufacturing sites Strong increase in profit before tax • NOK 42.2 million (NOK 21.1 million) Increased operating profit • E
Slide 2: A step change in profitability in H1
A step change in profitability in H1 Revenue growth of 11.3% Strong increase in profit before tax to 58.4 million (NOK 36.8 million) • Streamlining of operation • Focus on sourcing Order intake increased by 30.4% • Order backlog grew by 13.5% Seasonally negative cash flow from operations • Increased
Slide 3: Strong performance
Strong performance High activity at all manufacturing sites Stable gross margin 39.5% (39.1%) Relative payroll costs improved to 23.3% of revenue (26.3%) EBITDA NOK 61.1 million (NOK 34.3 million) EBIT NOK 48.7 million (NOK 26.4 million) Net financial items NOK 6.5 million (NOK 5.3 million) Profit b
Slide 4: Solid balance sheet
Solid balance sheet Total balance sheet NOK 1 074.6 million (NOK 913.9 million) • Reflecting higher activity level Equity ratio of 28.2% (23.7%) • Equity NOK 303.1 million (NOK 217.1 million) Inventory turns improved (rolling annual) to 7.1 (6.4) • Inventory NOK 310.5 million (NOK 272.2 million) Ava
Slide 5: Equity and liabilities / Cash flow
Equity and liabilities Cash flow 5
Slide 6: Market development
Market development Market and technology trends No market slow down identified Customer priorities • 10-15% annual market growth • Quality predicted • Delivery reliability • Continued trend towards outsourcing • Price • Sustainable financial High activity within technology performance development •
Slide 7: Solid order backlog
Order intake variable Last quarters suggest a higher level Order intake total 650 600 550 500 NOK million 450 400 350 300 Q 07 Q 04 Q 04 Q 04 Q 04 Q 05 Q 05 Q 05 Q 05 Q 06 Q 06 Q 06 Q 06 Q 07 Q 07 Q 07 Q 08 08 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 2 3 4 1 2 3 4 1 2 4 1 2 3 4 1 2 1 3
Slide 8: Order backlog per business area
Order backlog per business area Market segments Data/Telecom • Revenue grew 13.7% in Q2 • Still adding capacity to satisfy shorter delivery times to attract additional orders Defence/Marine • Revenue grew 37.8% • Order intake doubled in first half 2008 Medical equipment • Revenue increased by 4.3% i
Slide 9: Outlook
Outlook Healthy profitability expected Market growth expected to continue. Growth ambition of 10% annual organic growth Expansion of the Uzliedzai facility will commence operation in Q3 Horten serial manufacturing commenced Continuously driving for productivity improvements Kitron expects to maintai
Slide 10: Questions?
Our solutions deliver success! 4 Kitron (Our solutions deliver succees! 4 Kitron 10