Kitron Asa · OSL:KIT

Kitron Asa — Q3 2015 Earnings Presentation

17 slides from Kitron Asa's earnings presentation, Oct 20, 2015

  1. Slide 1: First three quarters and Q3 results 2015

    First three quarters and Q3 results 2015 Peter Nilsson, CEO Cathrin Nylander, CFO October 20th, 2015

  2. Slide 2: Sixth consecutive quarter with improved profitability

    Financial highlights Q3: Sixth consecutive quarter with improved profitability NOK mill. Q3 2015 vs Q3 2014  Double-digit revenue growth in spite of declining revenues in Revenue 467,7  22,4 % offshore/marine sector.  Continued profitability EBIT 26,3  283,0 % improvement  EBIT Margin 5.6% (1.8

  3. Slide 3: Significantly improved profitability and cash flow

    Financial highlights first three quarters: Significantly improved profitability and cash flow NOK mill. 2015 vs 2014  Double-digit revenue growth in spite of declining revenues in offshore/marine sector. Revenue 1427,3  11,9 %  Earnings stabilized on higher level since fourth quarter EBIT 69,1 

  4. Slide 4: Important orders in the third quarter

    Major new orders: Important orders in the third quarter  Long-term agreement with Northrop Grumman Corporation  Kitron Norway has signed a long-term agreement with Northrop Grumman Corporation to supply subassembly electronic modules for F-35 Lightning II aircraft avionics.  The agreement is effe

  5. Slide 5: Important orders in the third quarter

    Major new orders: Important orders in the third quarter  Kitron Norway signs contract with leading supplier of medical equipment  The agreement specifies that Kitron for specific products will be supplier for a period of approximately two years from 2016  In this period the expected turnover rela

  6. Slide 6: Financial statements first three quarters and Q3 2015

    Financial statements first three quarters and Q3 2015 6

  7. Slide 7: Defence/Aerospace, Energy/Telecoms and Medical growth offsets decline in Offshore/Marine

    Revenue Q3: Defence/Aerospace, Energy/Telecoms and Medical growth offsets decline in Offshore/Marine Q3 2015 vs Q3 2014 Share of total revenue  476 471 489 Offshore/Marine -60,4 % 3,5 % 468 382 Medical equipment 27,2 %  26,4 % 22.4 % Defence/Aerospace 71,4 %  28,1 % Energy/Telecoms 51,7 %  16,1

  8. Slide 8: Strong growth in three out of five market sectors

    Revenue first three quarters: Strong growth in three out of five market sectors 2015 vs 2014 Share of total revenue Revenue three quarters 1 427 Offshore/Marine -48,2 %  7,0 % 1 155 1 275 Medical equipment 4,2 %  22,9 % Defence/Aerospace 58,1 %  28,3 % 11.9 % Energy/Telecoms 19,5 %  14,1 % NOK m

  9. Slide 9: Growth in all sectors except from Offshore/Marine

    Revenue by country first three quarters*: Growth in all sectors except from Offshore/Marine 632 632 2015 vs 2014 Share of total revenue Norway -0,1 %  39,1 % 2014 2015 Sweden 9,8 %  21,3 % 313 343 310 343 297 Lithuania 10,6 %  21,2 % 168 Others 77,1 %  18,4 % NOK million Norway Sweden Lithuania

  10. Slide 10: Sixth consecutive quarter of improved profitability

    Quarterly EBIT: Sixth consecutive quarter of improved profitability  Improvement in both nominal value as well as EBIT margin 26,3  Stable sales quarter-on-quarter 20,8 22,1  Strong contribution from service sales, both from development and 14,3 engineering 6,9 6,9 NOK million 283.0 % Q2 2014 Q3

  11. Slide 11: Strong improvement

    EBIT by country first three quarters: Strong improvement EBIT* 25,4 25,0 NOK million  Norway 19,8 21,0  Cost reduction actions continue to yield 16,0 results 7,2  Sweden 2,6  Significantly improved margins and revenue growth  Lithuania  Reduction due to higher indirect cost -13,4 and pressure

  12. Slide 12: Cash flow improvement

    Balance sheet: Cash flow improvement  Cash flow  Q3 Cash flow MNOK 32.7 (-9,7)  YTD Cash flow MNOK 116 (-17.6)  Improved profitability  Working capital  Downwards trend continues  Cash conversion cycle 105 compared to 115 last year 12

  13. Slide 13: Market development

    Market development www.kitron.com

  14. Slide 14: Significant overall growth except from Offshore/Marine

    Order backlog: Significant overall growth except from Offshore/Marine Order backlog Order Backlog MNOK NOK million  916 vs. 807 September last year (increase of 13.5%) 916  Defence: 392 +8% (361)  Medical: 178 +20% (148) 868  Industry: 223 +44% (154) 855  Telecom: 82 +42% (58) 830  Offshore: 4

  15. Slide 15: Outlook

    Outlook www.kitron.com

  16. Slide 16: Outlook

    Outlook  For 2015, Kitron expects growth and a clear improvement in profitability.  Growth is driven by increased demand in Defence sector for US and Norwegian markets, as well as increases in Energy/Telecoms and Industry.  Offshore/Marine will have reduction due to oil service market in Norway.

  17. Slide 17: Thank you!

    4 Kitron Your ambition. Our passion. Thank you!

Kitron — Q3 2015 Earnings Presentation on 6ix