Kitron - Investor Presentation 2018

Kitron: Status update and new dividend policy

(2018-02-16) Kitron today publishes a capital markets presentation, in which the

company provides a status update on its progress towards its 2020 targets and

updates its dividend policy.

The company reaffirms the goal of organic revenue growth leading to revenue of

NOK 3 billion in 2020 and sees some upside potential to this target. The company

is also on track for the 7% EBIT margin target in 2020. Targets for capital

efficiency and return on capital are also maintained.

The board has also decided to update Kitron's dividend policy. The new policy is

as follows: "Kitron's dividend policy is to pay out an annual dividend of at

least 50 % of the company's consolidated net profit before non-recurring items.

When deciding on the annual dividend the company will take into account

company's financial position, investment plans as well as the needed financial

flexibility to provide for sustainable growth."

The previous policy was to pay a dividend of 30-60 per cent of net profit.

"We presented a new strategy and ambitious 2020 targets for Kitron in February

2016. It is with great pleasure that I am able to report, two years later, that

we are well on our way towards these targets. The key is ongoing operational

improvements, leading to profitable growth and much more efficient use of

capital. This has allowed us to pay an attractive dividend while also investing

in automation and robotization in order to increase our competitiveness

further," said Peter Nilsson, CEO of Kitron.

The video version of the presentation can be viewed here:

https://youtu.be/FPw8mUyBki4

Enclosed is a PDF version covering the highlights of the presentation.

For further information, please contact:

Peter Nilsson, CEO, tel: +47 948 40 850

Cathrin Nylander, CFO, tel: +47 900 43 284

Kitron is one of Scandinavia's leading electronics manufacturing services

companies for the Defence/Aerospace, Energy/Telecoms, Industry, Medical devices

and Offshore/Marine sectors. The company is located in Norway, Sweden,

Lithuania, Germany, China and the United States. Kitron had revenues of about

NOK 2.4 billion in 2017 and has about 1 450 employees. www.kitron.com

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.

AI assistant