Kitron — Investor Presentation 2020

Mar 18, 2020

Kitron: Maintaining strategic ambitions and outlook

Kitron: Maintaining strategic ambitions and outlook

(2020-03-18) Kitron will today host a combined webcast and conference call to

present an update on the company's operations and progress towards the strategic

and financial targets and ambitions presented at last year's Capital Markets

Day.

While this is a planned strategic progress report, the company will also give an

update on the short-term situation relating to the coronavirus.

"Over the past year, we have made excellent progress along the path we set last

year towards 2025, integrating a new business in the US, opening a new factory

in Poland and expanding our capacity in China. In the short term, we have taken

strong actions to reduce risks related to the corona situation. Currently all

our facilities are operating as normal. Based on what we currently know, we seem

to be on track for our 2020 outlook. However, uncertainty might give higher

volatility in the months to come. But so far, demand remains strong and stable,"

said Peter Nilsson, CEO of Kitron.

2025 ambitions

Kitron will continue its growth strategy, while maintaining robust operating

margins and capital discipline. The company maintains it outlined ambitions for

2025: revenue of NOK 5 billion, an EBIT margin of 7 percent and return on

operating capital of 25 percent.

The capacity expansion carried out last year is considered sufficient to reach

the 2025 revenue ambition.

Growth drivers

Kitron will maintain its focus on current market sectors, and has identified

three growth drivers for relevant markets:

* Long-term outsourcing trend continues

* Broad-based move to electrification

* Internet of Things drives product connectivity

These macro trends provide exciting growth opportunities characterized by

complex, high-margin products and medium volumes.

Corona situation

So far, we have seen no major disruption to our business, neither internally nor

with regards to suppliers or customers. Our facility in China was affected by

the temporary restrictions imposed by the authorities, but it is currently back

to normal capacity, and we will increase capacity going forward. All other

facilities have been operating as normal. All tier-one suppliers in China have

re-started operations. There has so far been no major disruptions to supply

chains outside China. Moving forward, we are preparing for some component

allocations and take actions to alleviate such a situation.

In general, it is difficult to evaluate the effects of this fast-changing

situation, but Kitron has taken a number of actions to reduce risk and protect

the capacity.

Event details

The presentation will be webcast at 10:00 am CET today and will be hosted by CEO

Peter Nilsson and other members of group management. The webcast will be

followed by a conference call.

The webcast does not require prior registration, but you will have to register

in advance to take part in the conference call.

To register for the conference call, please send an email to:

investorrelations@kitron.com (mailto:investorrelations@kitron.com)

To follow the webcast, please use the following link:

https://channel.royalcast.com/webcast/hegnarmedia/20200318_1

Enclosed in PDF is the presentation material for the event.

For further information, please contact:

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

E-mail: investorrelations@kitron.com (mailto:investorrelations@kitron.com)

Kitron is a leading Scandinavian electronics manufacturing services company for

the Defence/Aerospace, Energy/Telecoms, Industry, Medical devices and

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

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

3.3 billion in 2019 and has about 1 700 employees. www.kitron.com

(http://www.kitron.com)

This information is published in accordance with the requirements of the Oslo

Børs Continuing Obligations for stock exchange listed companies.