330 likes | 526 Views
Kitron ASA Presentation Second Quarter 2003. Main Features – 2nd Quarter 2003. Lower costs strengthen expectations of higher profitability in second half of 2003 Sales in second quarter: NOK 475m (551m) Gross margin: 38.8% (37.3%) EBT: NOK - 2.7m (-10.6m)
E N D
Main Features – 2nd Quarter 2003 • Lower costs strengthen expectations of higher profitability in second half of 2003 • Sales in second quarter: NOK 475m (551m) • Gross margin: 38.8% (37.3%) • EBT: NOK - 2.7m (-10.6m) • Positive cash flow of NOK 42m (6m) from operations • Reduction of 253 full-time positions in first half-year • Total assets of NOK 816m (910m) • Order backlog: NOK 900m (820m)
Performance trend Q2 2002 – Q2 2003 Change: NOK –21.4m Cause: Sales down NOK 76.5m Gross profit Q2 2002 - Q2 2003 210 000 205 551 205 000 200 000 195 000 190 000 184 132 185 000 180 000 175 000 170 000 Q2 2002 Q2 2003 Change: NOK –22.8m Cause: 1) Payroll costs down NOK 14.1m 2) Other operating costs down NOK 7.2m 3) Depreciation down NOK 1.5m Operating costs Q2 2002 - Q2 2003 205 000 200 292 200 000 195 000 190 000 185 000 177 541 180 000 175 000 170 000 165 000 Q2 2002 Q2 2003
Development of payroll costs 147 147 150 144 139 140 133 130 NOK mill. 120 108 110 100 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Development of payroll costs Full-time positions - Kitron Group at 31.12.02 31.12 Added from Tandberg Data 65 Added from Alcatel Norkrets 24 Increase in workforce Kitron Lithuania 29 Laid off/left in first half 2003 (253) Kitron Group total at 30.06.03 1 377
Performance trend Q2 2002 – Q2 2003 Change: NOK – 6.6m Cause: Less tied-up capital, no write-down of shares Net financial costs Q2 2002 - Q2 2003 20 000 15 898 15 000 9 282 10 000 5 000 - Q2 2002 Q2 2003 Change: NOK 8m Loss before tax Q2 -2002 - Q2 2003 - Q2 2002 Q2 2003 (2 000) (2 691) (4 000) (6 000) (8 000) (10 000) (10 639) (12 000)
Income Statement 2nd Quarter 2003 (Figures in NOK 1.000) Income Statement Q2 2003 Q2 2002 Per 30jun03 Per 30jun02 2002 (audited) Operating income 474 827 551 345 931 761 1 074 401 1 984 279 Cost of materials 290 695 345 794 563 329 673 430 1 238 385 Gross margin 38,8 % 37,3 % 39,5 % 37,3 % 37,6 % Payroll expenses 132 963 147 018 272 303 293 879 569 883 Other operating expenses 31 250 38 492 65 842 72 125 157 014 EBITDA 19 919 20 041 30 287 34 966 18 997 Ordinary depreciation 12 596 13 932 24 996 27 344 55 738 Goodwill amortisation 732 850 1 463 1 700 3 400 Operating profit (EBIT) 6 591 5 259 3 827 5 922 -40 141 Net financial costs 9 282 15 898 18 605 25 891 47 943 Profit (loss) before tax -2 691 -10 639 -14 777 -19 968 -88 084 Taxes -282 -3 013 -3 549 -5 625 -23 835 -2 409 -7 626 -11 229 -14 343 -64 249 (0,02) (0,13) (0,13) (0,24) (1,07) Profit (loss) after tax Profit (loss) per chare
Balance sheet per 30 June 2003 Development total balance sheet Q2 2002 - Q2 2003 909 605 920 000 900 000 880 000 860 000 840 000 815 573 820 000 800 000 780 000 760 000 2nd Q 2002 2nd Q 2003 Development inventory Q2 2002 - Q2 2003 400 000 379 115 380 000 360 000 340 000 322 444 320 000 300 000 280 000 2nd Q 2002 2nd Q 2003 Change: NOK -94,0 mill. Change: NOK -56,7 mill.
Balance sheet per 30 June 2003 Development accounts receivable Q2 2002 - Q2 2003 250 000 211 183 200 000 150 000 112 247 100 000 50 000 - 2nd Q 2002 2nd Q 2003 Development interest-bearing liabilities Q2 2002 - Q2 2003 450 000 400 000 350 000 300 000 196 800 Factoring liabilities 250 000 200 000 Capitalised liabilities 242 547 150 000 100 000 194 005 50 000 53 467 - 2nd Q 2002 2nd Q 2003 Change: NOK -98,9 mill. Change: NOK -94,8 mill.
Balance sheet per 30 June 2003 (Figures in NOK 1.000) Balance 30June2003 30June2002 31Dec2002 Deffered tax assets 109 428 85 138 102 206 Intangible assets 19 693 18 170 16 470 Tangible assets 147 905 158 239 156 606 Financial assets 24 123 19 763 25 095 Total fixed assets 301 149 281 310 300 377 Inventory 322 444 379 115 340 459 Accounts receivable 112 247 211 183 118 310 Other receivables 45 924 36 457 29 995 Cash and bank deposits 33 809 1 540 26 036 Total current assets 514 424 628 295 514 800 Total assets 815 573 909 605 815 177
Balance per 30 June 2003 Liabilities & shareholders equities 30June2003 30June2002 31Dec2002 Share capital 286 010 288 786 223 018 Accured equity -11 227 -16 937 - Other reserves 4 189 - - Minority reserves 5 311 - 4 182 Total shareholders’ equity 284 283 271 849 227 200 Pension commitments 9 175 10 117 9 132 Amounts owed to credit institutions 53 467 146 140 63 194 Other long-term liabilities 48 445 17 638 41 400 Total long-term liabilities 111 087 173 895 113 726 Interest-bearing short-term liabilities - 47 865 30 333 Provisions for liabilities & charges 22 279 - 42 301 Other short-term liabilities 397 924 415 996 401 617 Total short-term liabilities 420 203 463 861 474 251 Total liabilities & shareholders’ equity 815 573 909 605 815 177 Financing ofaccountsreceivables: 242 547 196 800 246 000
Cash flow statement & shareholders’ equity per 30 June 2003 Q2 2003 Q2 2002 30Jun03 30Jun02 2002 (audited) Cash flow statement (NOK 1 000) 42 310 6 044 (10 652) 55 784 200 536 Net cash flow from operating activites (7 724) (1 390) (11 126) (3 626) (23 404) Net cash flow from investing activities (24 092) (8 993) 29 551 (53 989) (154 467) Net cash flow from financing activities 10 494 (4 339) 7 773 (1 831) 22 665 Net changes in cash 23 315 5 879 26 036 3 371 3 371 Cash balance per 31Dec.02/opening date 33 809 1 540 33 809 1 540 26 036 Cash balance as of closing date 30Jun03 30Jun02 2002 (audited) Shareholders’ equity (NOK 1 000) Shareholders’ equity opening blance 227 200 288 786 288 786 Profit/loss for the year (11 229) (14 343) (64 249) Conversion difference 5 319 (2 594) (1 519) Share issue after issue costs 62 993 - - Change in minority interests - - 4 182 Shareholders’ equity closing balance 284 283 271 849 227 200
Rank Shareholders Per 26 Aug 2003 % share 1 Whitecliff ASA 36 037 485 28,71 % 2 KongsbergGruppen ASA 33 914 292 27,01 % 3 SEB klientkonto 10 058 033 8,01 % 4 Tine Pensjonskasse 7 987 000 6,36 % 5 Aksjefondet Gambak 3 000 000 2,39 % 6 Sparebankens Sikringsfond 2 500 000 1,99 % 7 Statoil pensjonskasse 1 958 479 1,56 % 8 Statoil forsikring 1 637 307 1,30 % 9 Hatteland Holding AS 1 500 000 1,19 % 10 Jurs Consulting 1 100 000 0,88 % 11 Telespar 1 080 011 0,86 % 12 Verdipapirfondet Avanse 1 059 123 0,84 % 13 Gambak kapital 700 000 0,56 % 14 Norske Shell pensjon 679 629 0,54 % 15 Gullskogen Cellulose 613 000 0,49 % 16 Bergen komm. Pensjonskasse 600 000 0,48 % 17 Verdipapirfor. Avanse 500 000 0,40 % 18 Verdipapirfondet Fondsfinans 500 000 0,40 % 19 Sundal Collier Aktiv 499 300 0,40 % 20 Storebrand Norge AS 450 000 0,36 % Total top 20 106 373 659 85 % Total amount of shares 125 543 325 100 % Top 20 shareholders per 26 August 2003
Turnover development of market sectors 2nd Q 2002 – 2nd Q 2003 200 178 165 145 142 150 113 113 2Q 2002 95 100 76 2Q 2003 50 - Defence Data/telecom Medical Industry Turnover development of market sectors 1st Q 2003 – 2nd Q 2003 200 145 142 140 138 150 113 107 1st Q 2003 100 76 72 2nd Q2003 50 - Defence Data/telecom Medical Industry Development market sectors
Defence/Marine • Although slightly down on last year’s second quarter, this was the company’s largest segment during the period • The decline was due to one client in the marine segment • A better market for oil/gas exploration services is expected to boost the level of activity in 2004 • Prospects in the defence segment remain good • Major development projects are being carried out in 2003 • Existing project plans indicate that production activities will grow by around 10% from 2003 to 2004 30%
Data/Telecom • The market remained depressed in the second quarter and this has continued into the second half-year • Some clients point to signs of recovery • Indications that negative market trends are being replaced by stability and the possibility of positive prospects • Kitron EMS depends on an inflow of new projects in order to participate in the market growth that is expected in 2004 • Present contracts based on expertise in wireless applications (high-frequency microwave technology) will generate growth for Kitron Microelectronics in 2004 30%
Medical • The slight decline in turnover in the second quarter compared with the same period last year was due to client-specific circumstances • Ongoing development projects are expected to generate production contracts for new products • Breakthrough with limited module deliveries to major players in the segment offer the prospect of new production contracts • Qualifying Kitron Litauen to produce medical equipment • 5-8% market growth expected 16%
Industry / Other • Turnover in line with previous year • Very positive trend among some clients engaged in industrial applications • Total volume in 2003 affected by reduction in stocks held by one major client in this segment • Kitron is highly dependent on the market situation for individual clients within the sector • Considerable growth potential for certain clients • Prospect of increasing Kitron’s market share among some clients by providing competence and services that strengthen the client’s competitive position 24%
Looking ahead • Order backlog NOK 900m (820m) • Estimated turnover for second half-year: • Third quarter – roughly 5% down on last year (NOK 396 mill) • Fourth quarter – marginally down on last year (NOK 514m) • Estimates based on order reserve and forecasts • Taken separately, the second half-year is expected to be in profit • Continued focus on measures aimed at improving efficiency and further development of services providing added value
Focused factories – higher productivity Value-creative through-put time Non-value-creative through-put time Delivery Packing Finishing Post-sale assembly Soldering Manual assembly 5% Surface assembly 8% Stock management Kitting 85> % Total through-put time No value creation (Queues-waiting-set-up checks-transfers etc. Value creation (when tools are productive)
A single integrated and scaleable production system • EMS • Hisøy • Kilsund • Oslo • Kongsberg • Karlskoga • Litauen • Microelectronics: • Røros • Jønkøping
A single integrated and scaleable production system • EMS • Hisøy • Kilsund • Oslo • Kongsberg • Karlskoga • Litauen • Microelectronics: • Røros • Jønkøping
Product Roadmap – promoting profitability EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Product Roadmap – promoting profitability EMS Market Profitability Kitron’s strategy Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Ideal division of projects EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Status Defence&Marine clients/projects EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Status Data&Telecom clients/projects EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Industry&Other clients/projects EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Status Medical clients /projects EMS Market Profitability Concept Specification Design Prototype Introduction. Mature Decline Obsolescence
Focus on high-value clients Proximity to the market Competence Development services Service