Kitron — Report Publication Announcement 2021

Feb 11, 2021

Kitron: Q4 2020 - Strong finish to an exceptional year

Kitron: Q4 2020 - Strong finish to an exceptional year

(2021-02-11) Kitron today reported quarterly figures showing a solid end to a

full year characterized by exceptional growth and margin expansion, leading the

Board of Directors to propose a 40 percent increase in the annual dividend.

Kitron's revenue for the fourth quarter was NOK 992 million, an increase of 12

per cent compared to last year. Growth adjusted for currency effects was 7 per

cent.

Profitability expressed as EBIT margin was 7.6 per cent in the fourth quarter,

compared to 6.1 per cent in the same quarter last year.

The order backlog ended at NOK 2 006 million, an increase of 6 per cent compared

to last year.

Peter Nilsson, Kitron's CEO, comments:

"On top of a strong underlying trend for Kitron in 2020, the Covid-19 pandemic

created a temporary demand surge within the Medical devices market sector,

leading to unusually strong growth and high margins. In 2021, we see a more

normalized market and expect to follow our long-term growth and margin

trajectory. Looking ahead, we see exciting business opportunities related to

megatrends within electrification and connectivity."

Solid revenue and order backlog

Kitron's revenue in the fourth quarter amounted to NOK 992 million, compared to

889 million in the same quarter last year. Revenue growth compared to the same

quarter last year was particularly strong in the Industry market sector. As

expected, the Medical sector normalized after extraordinarily high activity in

the second and third quarter.

The order backlog ended at NOK 2 006 million, compared to 1 884 million last

year. The order backlog increased the most within Energy/Telecom and Industry.

Strong profitability

Fourth quarter operating profit (EBIT) was NOK 75.7 million, compared to 54.2

million last year. EBITDA was NOK 102.2 million, compared to 82.2 million last

year. Profit after tax amounted to NOK 47.1 million, compared to 34.0 million in

the same quarter the previous year. This corresponds to earnings per share of

NOK 0.26, up from 0.19 last year.

Outstanding full-year results

Full-year revenue of NOK 3 964 million gave an overall revenue growth of 20 per

cent for the year. Operating profit (EBIT) for the year ended at NOK 312.6

million, compared to NOK 201.5 million, resulting in an EBIT margin of 7.9 per

cent, compared to 6.1 per cent in 2019. Profit after tax was NOK 213.1 million,

up from NOK 132.5 million, corresponding to NOK 1.19 earnings per share,

compared to NOK 0.74 in 2019.

The Board of Directors proposes a dividend of NOK 0.70 per share for 2020. The

Board proposes a changed policy of dividend payments in two equal tranches, one

in May and one in October. Last year Kitron paid a dividend of NOK 0.50 per

share.

Improved operating cash flow

Operating cash flow was NOK 132.2 million, compared to 97.2 million in the

fourth quarter of 2019, recovering significantly from being temporarily

challenged by the unusually strong growth in the second and third quarter. Net

working capital was NOK 1 064 million, an increase of 13 per cent compared to

the same quarter last year. As a percentage of revenue, net working capital was

unchanged. Capital efficiency ratios are expected to improve further.

Outlook

For 2021, Kitron expects revenue between NOK 3 900 and 4 200 million. EBIT

margin is expected to be between 6.8 and 7.4 per cent. The outlook for 2021

implies that Kitron is back on its long term trajectory for revenue and

profitability after exceptional growth in 2020, largely driven by Corona-related

demand within the Medical devices sector. Growth is driven by Defence/Aerospace,

Electrification and Connectivity within Energy/Telecom and Industry Sectors.

Medical devices is expected to be normalised and in line with previous years.

Enclosed in PDF are the quarterly report and the presentation. The interim

report is presented today at 8:30 a.m. CET. The presentation will be given in

English by CEO Peter Nilsson and CFO Cathrin Nylander, and will be webcast at

the following link:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20210211_6

For further information, please contact:

Peter Nilsson, President and CEO, tel. +47 94 84 08 50

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

4.0 billion in 2020 and has about 1 800 employees. www.kitron.com

(http://www.kitron.com)

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.