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
E-mail: investorrelations@kitron.com

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