Transcript Slide 1
Increased profitability and strong growth Oslo, 13th. February 2008 Eirik S. Larsen, CEO Kari Duestad, CFO
REACHING FURTHER
THROUGH PEOPLE AND INNOVATION
Comrod Communication ASA Q4 Presentation
AGENDA
I.
II.
Q4 highlights and introduction
Q4 Financials III. Business Areas Highlights IV. Summary
HIGHLIGHTS Q4
Strong growth during the fourth quarter
• Growth based on market foothold established over the last years.
• Trend confirmed during the first part of Q1 2008.
Significant results improvement
• EBIT of NOK 13.5 million in Q4 and NOK 29.5 million for 2007 in total • All business areas are again profitable Successful ramp up of production capabilities increases operational flexibility Strengthened relations to key customers Positive market outlook based on leading market position and new product launches
COMPANY PROFILE
COMROD COMMUNICATION GROUP
A leading player within the global markets for advanced tactical antennas, masts, power supply and related industrial products
No.1 globally on tactical antennas Leading market positions within defense masts and power supplies Preferred supplier to the major defense radio communication manufacturers World wide sales to more than 60 countries.
Headquarter and main factory at Tau, Norway. Factory in France; Power division located in Asker Current turnover about 300 million NOK and about 230 employees
BUSINESS MODEL AND STRATEGIC TARGET
Core competencies Product development Key customers Customer relationships Contracts Growth platform Turnover target • • • •
Design and manufacturing of antennas Antenna systems Telescopic masts Power supplies and battery chargers for defense applications
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Based on the rapid advances in radio communication technology as well as the specific needs of our key customers. Variants within a product concept is normally adapted specifically to the customers need
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Main defence communication equipment manufacturers
• •
Long term Based on proven track record, technical qualification and rigorous performance testing
• •
Large defense communication programs lay behind most of the contracts These programs can be national or multinational and are funded by governmental money through the MODs. Typical timelines are 3-5 years and longer
• • • •
Established market foothold Recent successful launch of new products New products in the pipeline for this year Total market growing annually by 10 – 15%
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NOK 500 million medium term is judged as a realistic target
AGENDA
I.
Q4 highlights and introduction
II. Q4 Financials
III. Business Areas Highlights IV. Summary
HIGHLIGHTS OF THE FINANCIAL PERFORMANCE IN Q4
Substantial growth in turnover
• 53 % in Q4 • 47 % as of Q4
Significant growth in EBIT
• • 31 % in Q4 52 % as of Q4
Q4 MAIN FINANCIAL RESULTS
Total Sales EBITDA EBIT EBIT % Q4 2007
103 588 16 745 13 577 13,1%
Q4 2006
67 596 12 224 10 394 15,4%
D 06 -07
53,2 % 37,0 % 30,6 %
Q4 MAIN FINANCIAL RESULTS
Total Sales EBITDA EBIT EBIT % Q4 2007 YTD
290 138 41 404 29 574
Q4 2006 YTD
151 273 24 544 18 858 10,2% 12,5%
D 06 -07
91,8 % 68,9 % 56,8 %
Q4 2006 Proforma YTD
197 523 29 241 19 458 9,9%
SEGMENT INFORMATION: TURNOVER PER BUSINESS AREA
Antennas
Turnover EBIT EBIT %
Masts
Turnover EBIT
Industrial Products
EBIT % Turnover EBIT EBIT %
Power Supply
Turnover EBIT EBIT %
Q4 2007
69 308 9 957 14 %
Q4 2006
40 210 11 363 28 %
Q4 2007 YTD
170 965 18 792 11 %
Q4 2006 YTD Proforma
129 289 20 816 16 % 17 231 3 782 22 % 14 665 (1 576) -11 % 54 398 6 832 13 % 27 186 (2 699) -10 % 10 120 771 8 % 6 760 (264) -4 % 33 002 2 374 7 % 26 239 (105) 0 % 8 544 1 395 16 % 5 962 870 15 % 33 516 7 548 23 % 14 809 1 446 10 %
CASH FLOW STATEMENT
Profit before tax Depreciation and write-downs Change in net working capital Net cash flow from operations Net cash flow from investment activities Net cash flow from financing activities Net change in cash and cash equivalents Cash and cash equivalents at start of period Cash and cash equivalents at end of period Credit facility 31.12.2007
18 153 11 830 -26 157 3 826 11 974 -9 670 6 130 3 184 9 314
31.12.2006
11 732 5 686 -9 059 8 360 -122 587 115 733 1 506 1 678 3 184 20 000 5 000
BALANCE SHEET
(All figures in 1000 NOK)
Total Capital Equity Net interest-bearing liabilities Property, Plant and Equipment Intangible assets 31.12.2007
31.12.2006
303 905 270 627 95 044 18 236 113 990 183 581 61 981 57 878 69 722 67 386
AGENDA
I.
Q4 highlights and introduction II.
Q4 Financials
III. Business Areas Highlights
IV. Summary
BUSINESS AREA
ANTENNAS – HIGHLIGHTS
Comrod antennas for the defence/ military market and for civilian/commercia l use.
Improved financial results driven by growth in turnover and improved efficiency
Increase in deliveries on contract with Harris Corporation in the US
• The dominant position of Harris place Comrod in unique position for further growth
New antenna contracts secured
• New contract in October on new multiband antenna to major NATO country; NOK 12,7 mill.
• Contract with Norwegian Army in October on vehicle antennas; NOK 6,7 million Ramped up production at Tau factory; output capacity now doubled compared to 2006 Factory in Hungary acquired for added operational flexibility and to secure future profitability
High sales expected also in the first quarters of 2008
Telescopic, sleeve, man pack, manual and motorized masts.
BUSINESS AREA
MASTS – HIGHLIGHTS
Business Area Profit improvement through improved operations confirmed by Q4 excellent EBIT margins New level for annual turnover established; 2007 turnover was twice the turnover of 2006 Agreement with THALES on streamlining supply chain
Increased use of systems related to Battle Field Surveillance
and Line Of Sight main driver for the growth in the market for masts Existing contracts and order book indicates continued good sales in first half of 2008
Custom designed products for commercial and military applications BUSINESS AREA
INDUSTRIAL PRODUCTS – HIGHLIGHTS
Improved profitability through 2007 by successful restructuring of production Revenue growth related to the offshore application business Production capacity is substantially increased for capturing on the high demand within offshore application products Insulator products profitability improvement program started
Experience from more than 130 OEM projects worldwide.
BUSINESS AREA
POWER SUPPLY – HIGHLIGHTS
Excellent financial results for 2007 First new contract with new customer secured; Contract on new 8 position battery chargers with Harris Corp in the USA.
• Contract value: • Start of deliveries: Outlook medium term is good; short term reduction in turnover growth in a transition period between contracts may be seen first half of 2008
Comrod Communication ASA - 70% of the shares in UMS
UMS NORWAY – UNMANNED SYSTEMS
Development and sales of UAVs (Unmanned Aerial Vehicles) Targeting the rapidly increasing demand for tactical UAVs in the defense and civil markets Investments to date are limited Full scale prototype to be airborne within March this year, followed by a period of operational tests
AGENDA
I.
II.
Q4 highlights and introduction Q4 Financials III. Business Areas Highlights
IV. Summary
SUMMARY AND OUTLOOK
Significant improvement in EBIT for Q4 and for the year in total Strong growth in turnover Operational improvements achieved as planned and capacity flexibility established Integration process is in good progress – motivation from achieving real results together Strong market foothold and total market growth indicates high turnover levels also in 2008
REACHING FURTHER – THROUGH PEOPLE AND INNOVATION
Thank you for your attention, any questions are welcome.
www.comrod.com