Kitron — Interim / Quarterly Report 2018

Apr 20, 2018

FIRST QUARTER REPORT 2018 Q1

Defence/Aerospace Energy/Telecoms Industry Medical devices Offshore/Marine Norway Sweden Lithuania Germany USA China

Report first quarter 2018

Solid growth and improved profitability

• 11% Revenue growth • 6% Operating profit • More efficient use of capital

Q1

Solid revenue growth

Kitron's revenue for the first quarter was NOK 651 million (NOK 585 million), an increase of 11 per cent compared to last year. Growth adjusted for foreign exchange effects in consolidation was 9 per cent.

Revenue growth compared to the same quarter last year was particularly strong in the Industry market sector. Energy/Telecoms and Medical devices also recorded solid growth, while Defence/ Aerospace declined. Offshore/Marine grew from a very low level.

The order backlog is noticeably affected by the implementation of IFRS 15. Without the effect from implementation of the new accounting standard IFRS 15, the backlog would have been NOK 1 161 million, which results in a growth of 10 per cent. Growth in order backlog was particularly strong in the Industry sector. Due to the IFRS 15 implementation, the booked order backlog ended at NOK 1 025 million.

Orders received in the quarter were NOK 514 million (NOK 620 million), a decrease of 17 per cent, illustrating that there will be variations from quarter to quarter, particularly within Defence/ Aerospace, although the underlying trend is intact.

Improved profitability

First quarter EBITDA* was NOK 53.0 million (NOK 42.7 million), an increase of 24 per cent compared to last year. Operating profit (EBIT)* for the first quarter ended at NOK 38.8 million (NOK 30.9 million), an increase of 26 per cent.

Profitability expressed as EBIT margin* was 6.0 per cent (5.3 per cent).

Profit after tax was NOK 26.2 million (NOK 21.6 million), an increase of 21 per cent and corresponding to NOK 0.15 earnings per share (NOK 0.12).

More efficient use of capital

Net working capital* was NOK 526 million (NOK 553 million) a decrease of 5 per cent compared to the same quarter last year, continuing the trend of decreasing net working capital compared to revenue.

Return on operating capital (ROOC) R3* was 19.8 per cent compared to 16.2 per cent in the same quarter last year. Net working capital R3 as a percentage of revenue was 19.3 per cent, compared to 22.0 per cent last year. Cash conversion cycle (CCC) R3* was 67 days for the quarter. This is down from 80 days last year, an improvement of 13 days.

The improved capital efficiency was a result of improved inventory processes in addition to spend consolidation and improved payment terms.

Due to low operating capital at end of Q4 2017, operating cash flow was negative NOK 19.5 million (negative NOK 15.4 million) for the quarter.

Active management of component availability

As previously reported, shortage of electronic components made 2017 a challenging year for many companies in the Electronics Manufacturing Services business. These challenges have continued into 2018 and are expected to last throughout the year.

Kitron's timely and systematic approach combined with its preferred partner program has prevented serious supply disruptions. In spite of challenges in the supply chain Kitron aims to reduce material cost in the same manner as achieved over the past three years.

Implementation of new accounting standard IFRS 15

Kitron implemented the new accounting standard IFRS 15 "Revenue from Contracts with Customers" from 1 January 2018. In the first quarter, this had minimal effect on revenue and profits, but it reduced the order backlog. It also affected certain balance sheet items. For more information, see notes 1 and 5 to the financial statements.

Key figures

NOK million	Q1 2018	Q1 2017		Change 31.12.2017
Revenue	651.3	585.1	66.2	2 436.7
EBIT	38.8	30.8	7.9	148.7
Order backlog	1 024.6	1 058.7	(34.1)	1 306.4
Operating cash flow	(19.5)	(15.5)	(4.0)	160.8
Net working capital	525.8	553.5	(27.7)	486.4

* For definition – See Appendix «Definition of Alternative Performance Measures»

ORDER BACKLOG Group

NOK million

38.8

Q1

NOK million

REVENUE Group

EBIT Group

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Key figures

Revenue from customers in the Swedish market represented a 41.1 per cent share of the total revenue during the first quarter (43.1 per cent). The Norwegian market represented 17.5 per cent of Kitron's total revenue in the first quarter (24.0 per cent).

Variable contribution

The variable contribution*, defined as revenue minus cost of materials and direct payroll expenses, decreased slightly from the same period last year.

Profit

Kitron's operating profit (EBIT) in the first quarter was NOK 38.8 million, which was an increase of NOK 7.9 million compared with the same period last year.

Profit before tax in the first quarter of 2018 was NOK 31.4 million, which was an increase of NOK 4.6 million compared to the same period last year.

The company's total payroll expenses in the first quarter were NOK 0.4 million higher than in the corresponding period in 2017. The relative payroll costs ended at 19.1 per cent, down from 21.1 per cent of revenue in the first quarter last year. Other operating costs were 5.1 per cent of revenue in the first quarter of 2018 (5.2 per cent).

During the quarter, net financial items amounted to a net cost of NOK 7.4 million. The corresponding figure for first quarter last year was a net cost of NOK 4.1 million. The main reason for the change was currency effects on intra-group financial loans. Intra-group financial loans to subsidiaries in foreign currencies as of 31 March 2018 that are affecting net financial income total USD 5.2 million and EUR 1.9 million.

Balance sheet

Kitron's gross balance sheet as of 31 March 2018 amounted to NOK 1 581.7 million, compared to NOK 1 413.4 million at the same time in 2017. Equity was NOK 687.5 million (NOK 610.7 million), corresponding to an equity ratio of 43.5 per cent (43.2 per cent). Net gearing* of the company was 0.25 (0.37).

Inventory was NOK 310.3 million as of 31 March 2018 (NOK 448.2 million). NOK 129.0 million of the reduction from the corresponding period last year was due to the implementation of IFRS 15. Inventory turns* was 4.6 in the first quarter 2018, which is an increase compared to first quarter last year (4.2).

Accounts receivables amounted to NOK 544.5 million at the end of the first quarter of 2018. The corresponding amount at the same time in 2017 was NOK 472.9 million.

The implementation of IFRS 15 from 1 January 2018 resulted in a new balance sheet line item "Contract assets". Contract assets was NOK 136.4 million as of 31 March 2018.

The group's reported net interest-bearing debt* amounted to NOK 175.3 million as of 31 March 2018. Net interest-bearing debt at the end of the first quarter 2017 was NOK 228.0 million. Net interestbearing debt/EBITDA is 0.8 for the first quarter compared to 1.3 at the same time last year.

Cash flow from operating activities for the first quarter of 2018 was negative NOK 19.5 million (negative NOK 15.5 million).

Organisation

The Kitron workforce corresponded to 1 529 full-time employees (FTE) on 31 March 2018. This is an increase of 71 FTE since the first quarter of 2017. There is a decrease of 62 FTE related to the operations in Norway, a decrease of 17 FTE in Sweden, while there is an increase of the workforce in Lithuania and China of 109 FTE and 46 FTE respectively. The number of FTE in low-cost regions now accounts for 71 per cent of the total.

Market

Order intake in the quarter was NOK 514.3 million, which is 17.0 per cent lower than for the first quarter 2017. The order backlog ended at NOK 1 024.6 million, which is 3.2 per cent lower than the same period last year.

Four-quarter moving average order intake was down from NOK 671.5 million at the beginning of the first quarter to NOK 645.1 million at the end of the quarter. Kitron's order backlog includes four months customer forecast plus all firm orders for later delivery.

* For definition – See Appendix «Definition of Alternative Performance Measures»

OPERATING CASH FLOW Group NOK million

NET WORKING CAPITAL Group NOK million

EQUITY RATIO Group Per cent

Q1

Revenue business entities

NOK million	Q1 2018	Q1 2017	Change	31.12.2017
Norway	159.3	184.0	(24.7)	737.6
Sweden	156.3	162.0	(5.8)	707.6
Lithuania	266.4	212.6	53.8	818.3
Others	95.4	88.7	6.7	394.8
Group and eliminations	(26.1)	(62.1)	36.1	(221.7)
Total group	651.3	585.1	66.2	2 436.7

EBIT business entities

NOK million	Q1 2018	Q1 2017	Change	31.12.2017
Norway	6.4	8.1	(1.6)	31.7
Sweden	5.2	1.6	3.6	26.7
Lithuania	27.4	19.9	7.5	69.1
Others	4.0	7.2	(3.2)	38.8
Group and eliminations	(4.2)	(5.9)	1.6	(17.6)
Total group	38.8	30.9	7.9	148.7

Revenue geographic markets

NOK million	Q1 2018	Q1 2017	Change	31.12.2017
Norway	114.0	140.5	(26.5)	529.5
Sweden	267.6	252.1	15.5	1 171.3
Rest of Europe	188.6	115.1	73.5	390.1
USA/Canada	62.7	62.2	0.5	273.2
Others	18.2	15.1	3.1	71.8
Total group	651.3	585.1	66.2	2 436.7

Full time employees

	31.03.2018	31.03.2017	Change	31.12.2017
Norway	274	336	(62)	270
Sweden	169	186	(17)	180
Lithuania	858	748	109	798
Other	228	187	41	203
Total group	1 529	1 458	71	1 451

REVENUE Defence/Aerospace NOK million

REVENUE Energy/Telecoms NOK million

REVENUE Industry NOK million

Q1

Defence/Aerospace

The Defence/Aerospace sector consists of three main product divisions: military and civil avionics, military communication and weapon control systems.

The Defence/Aerospace sector revenue decreased by 21.0 per cent compared to last year. The order backlog at NOK 381.8 million decreased by NOK 122.5 million during the quarter. Compared to last year, the order backlog increased by NOK 84.5 million (18.1 per cent).

The high level of activity in the defence sector continues, driven by roll- out of military communications equipment in Norway and supported by increased defence project deliveries in Sweden. Kitron's expansion of its footprint in the F35 program secures the company's future position as a strong partner within the defence sector.

The Defence/Aerospace sector is in general characterized by project deliveries. Military aviation programs constitute an increasing share of Defence/ Aerospace revenue, and as a consequence there will be larger fluctuations in order backlog, as these customers tend to place longer orders than normal in the defence sector.

Energy/Telecoms

Within the Energy/Telecoms sector Kitron offers clients particular expertise in manufacturing products such as transmission systems, high frequency microwave modules, radio frequency (RF) and remote measurement of electrical metering.

The Energy/Telecoms sector revenue increased by 12.0 per cent compared to last year. The order backlog is NOK 162.3 million, a decrease of NOK 5.5 million compared to the fourth quarter in 2017, and equal to the order backlog a year ago.

Kitron has reclassified customers as belonging to the Energy/ Telecoms market sector instead of Industry. Market sector figures for 2017 have been restated to be comparable.

Industry

Within the Industry sector Kitron operates and delivers a complete range of services within industrial applications like automation, environmental, material warehousing and security. The Industry sector consists of three main product areas: control systems, electronic control units and automation.

Revenue market sectors

NOK million	Q1 2018	Q1 2017	Change	31.12.2017
Defence/Aerospace	129.8	164.4	(34.7)	654.2
Energy/Telecoms	99.6	88.9	10.8	404.5
Industry	303.5	224.2	79.3	890.8
Medical devices	109.8	101.1	8.8	455.2
Offshore/Marine	8.6	6.5	2.1	32.0
Total group	651.3	585.1	66.2	2 436.7

Order Backlog market sectors

NOK million	31.03.2018	31.03.2017	Change	31.12.2017
Defence/Aerospace	381.8	466.2	(84.5)	504.3
Energy/Telecoms	162.3	162.3	0.0	167.8
Industry	354.1	273.6	80.6	455.6
Medical devices	107.7	143.1	(35.3)	157.7
Offshore/Marine	18.7	13.6	5.1	21.0
Total group	1 024.6	1 058.7	(34.1)	1 306.4

REVENUE Medical devices NOK million

REVENUE Offshore/Marine NOK million

The industry sector showed a revenue increase of 35.3 per cent compared to the first quarter last year, and an increase of 19.8 per cent from the fourth quarter of 2017. The order backlog increased by NOK 80.6 million (29.5 per cent) compared to the same period last year and decreased by NOK 101.5 million from the preceding quarter (22.3 per cent).

The industry sector continues to grow, primarily in Lithuania. Order backlog is affected by seasonality.

Medical devices

The Medical device sector consists of three main product areas: ultrasound and cardiology systems, respiratory medical devices and Lab/IVD (In-Vitro Diagnostics).

Revenue in the Medical device sector increased by 8.6 per cent compared to the same period last year. The order backlog is NOK 107.7 million, a decrease of NOK 35.3 million from the same period last year, and down NOK 50.0 million (31.7 per cent) compared to the preceding quarter.

Offshore/Marine

Kitron divides the Offshore/Marine sector into three main areas; subsea production systems, oil and gas exploration equipment and navigation, positioning, automation and control systems for the marine sector.

Q1

The Offshore/Marine sector revenue was NOK 8.6 million in first quarter, compared to NOK 6.5 million in the same period last year. The order backlog is NOK 18.7 million, a decrease of NOK 2.3 million compared to the preceding quarter and NOK 5.1 million higher than the same quarter last year. There are indications that the market bottomed out in 2017. We see growth moving ahead, albeit at comparatively low volumes.

Outlook

For 2018, Kitron expects revenue to grow to between NOK 2 500 and 2 700 million. EBIT margin is expected to be between 6.1 and 6.5 per cent. Growth is primarily driven by customers in the Industry and Energy sectors. Profitability is driven by cost reduction activities and improved efficiency.

The board emphasizes that every assessment of future conditions necessarily involves an element of uncertainty.

Oslo, 19 April 2018, Board of directors, Kitron ASA

Condensed profit and loss statement

NOK 1 000	Q1 2018	Q1 2017	31.12.2017
Revenue	651 286	585 082	2 436 729
Cost of materials	439 065	387 517	1 620 014
Payroll expenses	124 111	123 720	480 751
Other operational expenses	33 177	30 672	133 957
Other gains / (losses)	(1 885)	(433)	(861)
Operating profit before depreciation and impairments (EBITDA)	53 048	42 740	201 146
Depreciation	14 286	11 890	52 464
Operating profit (EBIT)	38 762	30 850	148 683
Net financial items	(7 410)	(4 069)	(16 183)
Profit (loss) before tax	31 352	26 780	132 499
Tax	5 142	5 199	33 502
Profit (loss) for the period	26 210	21 581	98 997
Earnings per share-basic	0.15	0.12	0.57
Earnings per share-diluted	0.15	0.12	0.57

Condensed balance sheet

NOK 1 000	31.03.2018	31.03.2017	31.12.2017
ASSETS
Goodwill	26 786	26 786	26 786
Other intangible assets	8 949	16 091	10 773
Tangible fixed assets	267 258	237 218	277 869
Deferred tax assets	57 179	69 302	58 024
Total non-current assets	360 172	349 398	373 451
Inventory	310 313	448 177	398 901
Accounts receivable	544 515	472 889	516 251
Contract assets	136 407	-	-
Other receivables	89 809	47 561	83 372
Cash and cash equivalents	140 461	95 373	176 725
Total current assets	1 221 505	1 064 000	1 175 248
Total assets	1 581 677	1 413 398	1 548 699
LIABILITIES AND EQUITY
Equity	687 459	610 719	663 565
Total equity	687 459	610 719	663 565
Deferred tax liabilities	3 398	953	3 417
Loans	74 397	59 399	76 434
Pension commitments	6 205	6 343	6 205
Total non-current liabilities	84 000	66 694	86 056
Accounts payable	465 468	367 572	428 801
Other payables	92 375	97 343	86 282
Tax payable	11 047	7 099	8 515
Loans	241 327	263 970	275 481
Total current liabilities	810 218	735 985	799 079
Total liabilities and equity	1 581 677	1 413 398	1 548 699

Q1

Condensed cash flow statement

NOK 1 000	Q1 2018	Q1 2017	31.12.2017
Profit before tax	31 352	26 780	132 499
Depreciations	14 286	11 890	52 464
Change in inventory, accounts receivable, contract assets and accounts payable	(39 417)	(41 299)	25 845
Change in net other current assets and other operating related items	1 399	13 062	(29 808)
Change in factoring debt	(27 101)	(25 927)	(20 200)
Net cash flow from operating activities	(19 480)	(15 494)	160 800
Net cash flow from investing activities	(7 158)	(13 972)	(35 150)
Net cash flow from financing activities	(8 170)	(7 393)	(70 294)
Change in cash and bank credit	(34 809)	(36 859)	55 357
Cash and bank credit opening balance	108 738	53 523	53 523
Currency conversion of cash and bank credit	(572)	(248)	(142)
Cash and bank credit closing balance	73 357	16 416	108 738

Consolidated statement of comprehensive income

NOK 1 000	Q1 2018	Q1 2017	31.12.2017
Profit (loss) for the period	26 210	21 581	98 997
Actuarial gain / losses pensions	-	-	(176)
Gain / losses forward contract	-	-	420
Exchange differences on translation of foreign operations	(1 987)	-	(1 870)
Currency translation differences	(4 203)	3 463	22 195
Total comprehensive income for the period	20 020	25 044	119 566
Allocated to shareholders	20 020	25 044	119 566

Changes in equity

NOK 1 000	31.03.2018	31.03.2017	31.12.2017
Equity opening balance	663 565	584 799	584 799
Profit (loss) for the period	26 210	21 581	98 997
Paid dividends	-	-	(44 048)
Effect from options	1 887	875	3 247
Implementation of IFRS 15	5 361	-	-
Other comprehensive income for the period	(9 564)	3 463	20 569
Equity closing balance	687 459	610 719	663 565

Notes to the financial statements

Note 1 – General information and principles

The condensed consolidated financial statements for the first quarter of 2018 have been prepared in accordance with International Financial Accounting Standards (IFRS) and IAS 34 for interim financial reporting. Kitron has applied the same accounting policies as in the consolidated financial statements for 2017, except for principles for revenue recognition. Information about accounting principles, implementation effects and method for implementation for revenue recognition is stated in note 30 to the consolidated financial statements for 2017. The interim financial statements do not include all the information required for a full financial report and should therefore be read in conjunction with the consolidated financial statements for 2017, which were prepared in accordance with the Norwegian Accounting Act and IFRS, as adopted by the EU.

The consolidated financial statements for 2017 are available upon request from the company and at www.kitron.com.

Note 2 - Estimates

The preparation of the interim financial statements requires the use of evaluations, estimates and assumptions that affect the application of the accounting principles and amounts recognised as assets and liabilities, income and expenses. The actual results may deviate from these estimates. The important assessments underlying the application of Kitron's accounting policy and the main sources of uncertainty are the same for the interim financial statements as for the consolidated statements for 2017.

Note 3 – Financial risk management

Kitron's business exposes the company to financial risks. The purpose of the company's procedures for risk management is to minimise possibly negative effects caused by the company's financial arrangements. There has been no change of impact or material incidents in 2018.

Q1

Note 4 – Other gains and losses Other gains and losses consist of net currency gains and losses

Note 5 – Implementation of IFRS 15 "Revenue from Contracts with Customers" The Kitron group implemented new IFRS 15 "Revenue from Contracts with Customers" from 1 January 2018. Information about accounting principles, implementation effects and method for implementation for revenue recognition is stated in note 30 to the consolidated financial statements for 2017.

The tables below show impact from IFRS 15 on condensed profit and loss statement for first quarter 2018, on condensed balance sheet and order backlog per 31 March 2018.

Q1

Condensed profit and loss statement

	Old	Effects	New
	principles	from	principles
NOK 1 000	Q1 2018	IFRS 15	Q1 2018
Revenue	636 982	14 304	651 286
Cost of materials	428 933	10 132	439 065
Payroll expenses	122 536	1 575	124 111
Other operational expenses	31 420	1 757	33 177
Other gains / (losses)	(1 885)	-	(1 885)
Operating profit before depreciation and impairments (EBITDA)	52 208	840	53 048
Depreciation	14 286	-	14 286
Operating profit (EBIT)	37 922	840	38 762
Net financial items	(7 410)	-	(7 410)
Profit (loss) before tax	30 512	840	31 352
Tax	4 970	172	5 142
Profit (loss) for the period	25 542	668	26 210
Earnings per share-basic	0.14		0.15
Earnings per share-diluted	0.14		0.15

Condensed balance sheet

	Old	Effects	New
	principles	from	principles
NOK 1 000	31.03.2018	IFRS 15*	31.03.2018
ASSETS
Goodwill	26 786	-	26 786
Other intangible assets	8 949	-	8 949
Tangible fixed assets	267 258	-	267 258
Deferred tax assets	58 675	(1 497)	57 179
Total non-current assets	361 669	(1 497)	360 172
Inventory	439 354	(129 041)	310 313
Accounts receivable	544 515	-	544 515
Contract assets	-	136 407	136 407
Other receivables	89 809	-	89 809
Cash and cash equivalents	140 461	-	140 461
Total current assets	1 214 138	7 367	1 221 505
Total assets	1 575 807	5 870	1 581 677
LIABILITIES AND EQUITY
Equity	681 589	5 870	687 459
Total equity	681 589	5 870	687 459
Deferred tax liabilities	3 398	-	3 398
Loans	74 397	-	74 397
Pension commitments	6 205	-	6 205
Total non-current liabilities	84 000	-	84 000
Accounts payable	465 468	-	465 468
Other payables	92 375	-	92 375
Tax payable	11 047	-	11 047
Loans	241 327	-	241 327
Total current liabilities	810 218	-	810 218
Total liabilities and equity	1 575 807	5 870	1 581 677

* The effect from IFRS 15 presented in this column is the implementation effects presented in note 30 to the consolidated financial statements for 2017 in addition to the effects for Q1 2018.

Order backlog market sectors

	Old	Effects	New
	principles	from	principles
NOK million	31.03.2018	IFRS 15	31.03.2018
Defence/Aerospace	421.6	(39.9)	381.8
Energy/Telecoms	184.1	(21.8)	162.3
Industry	402.4	(48.3)	354.1
Medical devices	132.4	(24.7)	107.7
Offshore/Marine	20.5	(1.8)	18.7
Total group	1 161.0	(136.4)	1 024.6

Appendix

Definition of Alternative Performance Measures

Order backlog

All firm orders and 4 months of committed customers forecast at revenue value as at balance sheet date.

Foreign exchange effects

Group consolidation restated with exchange rates as comparable period the previous year. Change in volume or balance calculated with the same exchange rates for the both periods are defined as underlying growth. Change based on the change in exchange rates are defined as foreign exchange effects. The sum of underlying growth and foreign exchange effects represent the total change between the periods.

EBITDA

Operating profit (EBIT) + Depreciation and Impairments

EBIT

Operating profit

EBIT margin (%) Operating profit (EBIT) / Revenue

Net working capital

Inventory + Contract assets + Accounts Receivables – Accounts Payable

Operating capital

Other intangible assets + Tangible fixed assets + Net working capital

Return on operating capital (ROOC) % Annualised Operating profit (EBIT) / Operating Capital

Return on operating capital (ROOC) R3 % (Last 3 months Operating profit (EBIT))*4) / (Last 3 months Operating Capital /3)

Direct Cost

Cost of material + Direct wages (subset of personnel expenses only to include personnel directly involved in production)

Days of Inventory Outstanding 360/ (Annualised Direct Costs/(Inventory + Contract assets))

Days of Inventory Outstanding R3 360/ ((Last 3 months Direct Costs *4) / (Last 3 months Inventory and Contract assets/3))

Days of Receivables Outstanding 360/ (Annualised Revenue/Trade Receivables)

Days of Receivables Outstanding R3 360/ ((Last 3 months Revenue*4)/(Last 3 months Trade Receivables/3))

Days of Payables outstanding

360/ ((Annualised Cost of Material + Annualised other operational expenses) / Trade Payables)

Days of Payables Outstanding (R3)

360/ (((Last 3 months (Cost of Material + other operational expenses)*4) / (Last 3 months Trade Payables)/3))

Cash conversion cycle (CCC)

Days of inventory outstanding + Days of receivables outstanding – Days of payables outstanding

Cash conversion cycle (CCC) R3

Days of inventory outstanding (R3) + Days of receivables outstanding (R3) – Days of payables outstanding (R3)

Net Interest-bearing debt

• Cash and cash equivalents + Loans (Non- current liabilities) + Loans (Current liabilities)

Interest-bearing debt

Loans (non-current liabilities) + Loans (current liabilities)

Inventory turns

Annualised direct costs / (Inventory + Contract assets)

Variable contribution Revenue - Direct cost

Net gearing Net interest - bearing debt / Equity

Kitron is an international Electronics Manufacturing Services company. The company has manufacturing facilities in Norway, Sweden, Lithuania, China and the US and has about 1 450 employees. Kitron manufactures both electronics that are embedded in the customers' own product, as well as box-built electronic products. Kitron also provides high-level assembly (HLA) of complex electromechanical products for its customers.

Kitron offers all parts of the value chain: from design via industrialisation, manufacturing and logistics, to repairs. The electronics content may be based on conventional printed circuit boards or ceramic substrates.

Kitron also provides various related services such as cable harness manufacturing and components analysis, and resilience testing, and also source any other part of the customer's product. Customers typically serve international markets and provide equipment or systems for professional or industrial use.