Kitron Asa · OSL:KIT
Kitron Asa — Q4 2007 Earnings Presentation
11 slides from Kitron Asa's earnings presentation, Feb 11, 2008
Slide 1: Profitable growth
Interim report Q4 2007 and preliminary result for the year 2007 11 February 2008 Jørgen Bredesen, CEO Erling Svela, CFO Profitable growth Best annual result in Kitron’s history Growth of 7.1% q4/q4 • 14.4% increase in 2007 over 2006 • High activity in the EMS business in Norway and Lithuania Order i
Slide 2: 2007 was a good year for Kitron
2007 was a good year for Kitron Best result since the group was established in 2000 • Restructuring charges 2004 and 2005 • Profitable 2006 and 2007 Continuing machine upgrade programme Inventory turns exceed 7 Equity ratio is 25% Available liquidity NOK 151 million • Supportive banks Financial stat
Slide 3: Increased profitability – "Best year ever"
Increased profitability – “Best year ever” Revenue grew 7.1%, to MNOK 551.3 (MNOK 514.8) • 14.4% in 2007, MNOK 1 937.8 (MNOK 1693.6) Reduced gross margin 37.9% [normalized 39.2%] (40.1%) • 38.3% in 2007 [normalized 38.7%] (40.0%) • One-off charge in UAB Kitron • Less growth in Development units • Pr
Slide 4: Increased balance sheet
Increased balance sheet Total balance sheet MNOK 1000.1 (MNOK 957.5) • Reflecting higher activity level Inventory reduced to MNOK 266.3 (MNOK 282.9) Available liquidity MNOK 151.4 (MNOK 128.8) Equity MNOK 247.0 (MNOK 185.7) • Equity ratio 25.1% (23.6%) • Excluding goodwill and deferred tax asset: 21
Slide 5: Equity increase, liabilities slightly up; favourable cash flow
Balance sheet (2): Equity increase, liabilities slightly up Equity increased by MNOK 61.3 due to profitable operations Sound equity ratio at 24.7% (19.4%) Interest-bearing debt has grown to MNOK 381.6 (MNOK 355.4) due to investments, factoring Favourable cash flow in Q4 and in the year Positive cash
Slide 6: Market trends
Market trends Strong demand Increased volume • EMS business in Norway and Lithuania Industrial EMS market grows more than consumer electronics market Increased competition demands higher efficiency EMS and Microelectronics business depends on customers’ loyalty and customers’ success in their market
Slide 7: Order intake variable around higher level
Order intake variable around higher level 650 600 550 500 NOK million 450 400 350 300 250 04 04 04 04 05 05 05 05 06 06 06 6 07 07 07 07 0 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Total 4Q average Order backlog stable after capac
Slide 8: Data/Telecom and Defence/Marine
Data/Telecom Revenue grew 29% q4/q4 • 24% growth over 2006 Industrialisation and manufacturing of advanced products within infrastructure equipment Microelectronics holds a strong position in the segment • Number of transponders for Q-Free grew in the magnitude of 50% over 2006 Defence/Marine Revenu
Slide 9: Medical equipment and Industry
Medical equipment Continued growth expected • Customer related issues in 2007 Ramping up to full activity at the assembly line in Horten Promising outlook in the Swedish market • Karlskoga decline in Defence/Marine compensated by growth in Medical • Thriving med-tech industry in Sweden Manufacturing
Slide 10: Outlook: Expanding capacity
Outlook Expanding capacity Market growth expected to last for several years • Cautiousness because of recent financial unrest and peer group results Growth ambition of 10% annually (organic growth) Investment in new capacity in Lithuania • Expansion at sub-site operational in Q2 2008 • New factory n
Slide 11: Going forward: Continuous improvement
Going forward: Continuous improvement Growth about 10% Margin challenges – competitive pressure Productivity increase – investing in people and machines Healthy balance sheet 11