Kitron Asa · OSL:KIT

Kitron Asa — Q3 2007 Earnings Presentation

11 slides from Kitron Asa's earnings presentation, Oct 26, 2007

  1. Slide 1: Interim report Q3 2007 – Continued growth

    Interim report Q3 2007 Kitron ASA 26 October 2007 Jørgen Bredesen, CEO Erling Svela, CFO Continued growth „ Continued revenue growth of 11% z 18% growth YTD „ Order intake stable „ Optimizing capacity utilization z Focus on operating efficiency z Adding/replacing equipment to remove bottlenecks z Fo

  2. Slide 2: Profitable growth / Events in Q3

    Profitable growth „ Moving average revenue per quarter, quarterly EBT 35 500 30 450 Revenue (moving average) NOK million per Q 25 20 400 EBT NOK million per Q 15 350 10 5 300 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 250 (5) 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006 2007 2007

  3. Slide 3: Interim financial statements Q3 2007

    Interim financial statements Q3 2007 Experiencing capacity limit issues „ Revenue grew 11%, to MNOK 390.2 (MNOK 350.4) z Year to date growth is 18% „ Reduced gross margin 38.6% (39.5%) z Variations between business areas and product mix „ Productivity improvement z Payroll costs down from 26.0 per c

  4. Slide 4: Profit/(loss) statement Q3 2007 – Higher activity, increased balance sheet

    Profit/(loss) statement Q3 2007 7 - one step ahead Higher activity – increased balance sheet „ Total balance sheet MNOK 886.8 (MNOK 718.4) z Reflecting higher activity level z Conventional factoring scheme implemented in Q4 2006 added receivables and debt „ Inventory reduced to MNOK 301.6 (MNOK 317.

  5. Slide 5: Assets / Equity and liabilities

    Assets „ Closing inventory turns was 6.1 (5.0) „ Trade debtors and other receivables reflecting conventional factoring „ Deferred tax assets retained at MNOK 20.0 (MNOK 20.0) 9 - one step ahead Equity and liabilities „ Equity amount has increased by MNOK 53.2 because of profitable operations „ Equit

  6. Slide 6: Cash flow / Market comments

    Cash flow „ Better cash flow from operational activities due to less seasonal inventory build-up „ Available liquidity increased to MNOK 89.5 (MNOK 34.7) 11 - one step ahead Market comments 6

  7. Slide 7: Continued growth / Order backlog remains at about 6 months' revenue

    Continued growth „ Increased volume mainly from current customers „ Industrial EMS market grows more than electronics market z Outsourcing z Stronger growth in industrial than consumer electronics „ Kitron has gained market share z Kitron grows more than its peer group 13 - one step ahead Order back

  8. Slide 8: Order backlog per segment – Defence/Marine

    Order backlog per segment 15 - one step ahead Defence/Marine „ Revenue at higher levels than in 2006 „ Expected growth throughout 2008 z Norway „ Well positioned for important offset contracts „ High demand from Kongsberg Defence & Aerospace 16 - one step ahead 8

  9. Slide 9: Medical equipment / Data/Telecom

    Medical equipment „ Stable activity „ Horten assembly line postponed due to customer related delay 17 - one step ahead Data/Telecom „ Significant growth „ Microelectronics holds a strong position in the segment z Q-Free placed an order worth NOK 60 million with Kitron 18 - one step ahead 9

  10. Slide 10: Industry / Outlook

    Industry „ Stable revenue „ Good prospects for 2008 „ Kitron is gaining ground in the automotive industry 19 - one step ahead Outlook 10

  11. Slide 11: A leading role in the industry

    A leading role in the industry „ Market growth expected to last for several years „ Growth limited by capacity of current facilities z Ambition adjusted to about 10% annual organic growth z Maintain position in Norway z Substantial market potential in Sweden „ Investment in new capacity z EDC Elsis

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