Kitron Overview. Norne Securities & Xtrainvestor.com Vilnius September 2016

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1 Kitron Overview Norne Securities & Xtrainvestor.com Vilnius September 2016 Peter Nilsson, CEO September 23th, 2016

2 Speaker Peter Nilsson Chief Executive Officer Born in Joined Kitron in Almost 25 years of experience in electronics manufacturing and related services. Several senior and executive leadership positions for Swedish and US companies. Mr Nilsson holds a degree in Industrial Management and is a Swedish citizen. 2

Kitron Group Operations in Norway, Lithuania, Sweden, Germany, China and USA Manufacturing of high complexity products for global markets About 1200 employees Revenue 2015: NOK 1.

3 Kitron Group Operations in Norway, Lithuania, Sweden, Germany, China and USA Manufacturing of high complexity products for global markets About 1200 employees Revenue 2015: NOK 1.95 Billion Europe EBIT 2015: NOK 103 Million Listed on Oslo Stock Exchange Arendal facility Jonköping facility Kaunas facility China China Ningbo facility Main shareholders: Stuttgart office Sievi Capital Plc. (FI ~ 33%) Kongsberg Group (NO ~ 19%) USA Johnstown facility Amber Trust II (Int l ~ 17%) 3

4 Operations: What is it Kitron does? Kitron is an Electronics Manufacturing Services company. Our customers outsource manufacturing and related services to us to improve flexibility, cost efficiency, accuracy and innovation power throughout the value chain. Development Industrialization Sourcing & procurement Manufacturing Logistics & Distribution Redesign Repair Maintenance

5 Markets and customers: High-value sectors with high-reliability products Energy/ Telecoms Defence/ Aerospace Offshore/ Marine Medical equipment Industry

6 Customer Example: Cardiovascular imaging Systems Development Industrialization Sourcing & procurement Manufacturing Logistics & Distribution Redesign Repair Maintenance Prototyping Test development Cost reduction Production programs planning Obsolescence Quality management assurance ITO optimization Efficiency programs Cable harnessing Final assembly Re-cycling and disposal management of packaging material Repair and Overhaul

Test development Sustainability reports Supplier selection and optimization Cost reduction programs Obsolescence management ITO

7 Customer Example: ABB HVDC: Efficient alternatives for transmitting bulk power and connecting Super Grids Development Industrialization Sourcing & procurement Manufacturing Logistics & Distribution Redesign Repair Maintenance Design studies Prototyping Test development Sustainability reports Supplier selection and optimization Cost reduction programs Obsolescence management ITO optimization Production planning Quality assurance Efficiency programs Electromechanical assembly Packaging and labeling services Red-Design and Cost reduction

8 Increasingly complex market: Outsourcing, nearshoring or reshoring? Outsourcing to Asia due to labor-cost advantage was major growth driver Today s picture more complex Increasing labor costs in Asia China moving up value chain Automation changes cost mix Strong growth in Eastern Europe Shorter time-to-market favors nearshoring Kitron offers a variation of production sites to match customers preferences, with clear strategic reasoning for each location.

9 Positioning of Kitron: High-reliability products and demanding customers Margin/complexity Local niche providers Volume

10 Financials 10

11 Financial highlights full year 2015: Significantly improved profitability and cash flow Double-digit revenue and order growth Ongoing margin expansion Strong cash flow NOK mill. Revenue 1951,8 EBIT 102,7 11,4 242, vs 2014 % % Reduced working capital Solid dividend capacity Order backlog 975,6 Operating cash flow 204,1 12,3 4384,1 % % Actions are yielding results. Net working capital 507,6-10,2 % 11

12 Financial highlights first half year: Solid growth Solid growth in revenue and strong growth in order backlog Underlying growth 5% Improved profitability NOK mill. Revenue 1060,1 EBIT 53,6 10,5 25, vs 2015 % % 5.1% (4.5%) Profitability adjusted for one-offs in Q1 at 5.5% Improved capital efficiency Order backlog 989,4 Operating cash flow 35,7 19,2 57,3 % % Net working capital 521,5-6,7 % 12

13 Margin NOK million Quarterly EBIT: Profitability level improved Contributing factors to profitability improvement Volume increase ~ 50 % 26,3 33,6 33,1 Cost reduction on direct materials a result of spend consolidation and increased technical service sales ~ 20% 14,3 20,8 22,1 20,5 Restructuring of geographical headcount ~ 20% 6,9 6,9 Currency translation ~ 10 % 379 % Q includes one off MNOK 5 for terminated acquisition. Q Q Q Q Q Q Q Q ,5 % 3,0 % 4,4 % 4,5 % 5,6 % 6,4 % 4,1 % 5,9 % 13

14 Balance sheet: Solid foundation for growth NIBD/EBITDA* Equity ratio 44% (43%) Target range 38% to 48% Net interest-bearing debt NOK 226,9 million NIBD/EBITDA 1,6 (5.0) Target below 2.5 Capacity to combine growth and dividend payments Stronger profitability and reduction of working capital improves ratios 3,5 2,4 4,4 5,0 1, * Net interest-bearing debt divided by earnings before interest, taxes, depreciation and amortization.

15 Capex: Major investment cycle nearing end Major investment cycle: modern, highly competitive facilities Lithuania 2014: NOK 37.0m (facility) and NOK 13m (equipment) Capital expenditure 3,8 % 3,9 % Norway 2015: NOK 40.5m (facility) and NOK 7.0m (equipment) Will be considerably lower in 2016 Despite facility and equipment investments in Sweden Expected to remain at lower level 1,8 % ,3 % Other Facilities Capex as % of revenue

16 Historical financials: Increasing effect of actions taken Revenue EBIT Operational cash flow EBITDA

17 Strategic Overview 17

18 Financial targets Target 2016: Revenue BNOK EBIT margin % CCC 80 days ROOC 20% Dividend 30-60% of net profit Strategy 2020: Revenue BNOK 3 EBIT margin 7% CCC 50 days ROOC 25% Dividend 30-60% of net profit

19 Kitron in the future: Strategic Agenda 1. Accelerated organic growth 2. Continued operational improvements 3. Growth through targeted M&A 19

Accelerate organic growth Service sales: 10% of revenue Existing customers: 10% annually New customers: 5% annually - 10% growth annually - 10% of revenues to stem from service sales which typically

20 Accelerate organic growth Service sales: 10% of revenue Existing customers: 10% annually New customers: 5% annually - 10% growth annually - 10% of revenues to stem from service sales which typically enjoys higher margins - For existing customers, Kitron anticipates to grow through winning replacement contracts, up- and cross-selling - For new customers, Kitron seeks to leverage its competence within core sectors and utilize Eastern European base to penetrate selected markets

21 Continued Operational Improvements Combining increased revenue and tight cost control Payroll expenses limited by leveraging investments in lower-cost countries Key cost-oriented initiatives ongoing: Continue to utilize resources in lower-cost countries Operational improvement program Consolidate sourcing Increased service sales will influence cost structure going forward Strategic target 25% Cost control taking hold 34,9% 33,7% 32,6% 32,6% 7,7% 7,6% 7,1% 7,3% 29,1% 6,3% 26,1% 25,5% 27,2% 25,3% 22,7% 25,0% Other opex as % or revenue

22 Operational Improvement Projects Q Q Q Q Q Consignment Stock Supply Chain Concept New NPI Process New Quality Management System Process Standardization (80-20) New Product Structures Operational Excellence Toolbox rollout Site Sourcing Plans Emergency Response Plan Business Continuity Plan IFS Manufacturing Enhancement Package Data Warehouse Routing Times Storage Conflict Minerals Inter Company EDI STEP 2 STEP 3 STEP 1 STEP 2 STEP 3 STEP 1 STEP 2 STEP 1 STEP 2 STEP 3 STEP 1 STEP 2 STEP 1 STEP 2 STEP 3 STEP 2 STEP 3 STEP 1 STEP 2 STEP 1 STEP 2 STEP 1 STEP 2 STEP 1 STEP 2 STEP 1 STEP 1 STEP 2 STEP 1 STEP 2

23 ROOC and CCC: Improving use of capital 2015 increase in return on operating capital primarily due to higher profit Improvement expected to continue: Higher profit Lower net working capital Lower capex Long-term target 25% Return on operating capital 13,8 % 25,0 % Cash conversion cycle* is a key metric Today: 90 days. Long-term target: 50 days Long-term target based on thorough internal analysis and peer comparisons 3,7 % 4,0 % * Days inventory outstanding + days sales outstanding - days payable outstanding.

24 Margins: EBIT target 7% in 2020 Operational improvements have taken hold in 2015 Expect approximately 5 6% margin in 2016 Expect ongoing margin increases in coming years Key elements: Growth Improved operational efficiency Growth of service sales 2,3 % 4,2 % EBIT margin 1,5 % 1,7 % 5,3 % 7,0 %

25 Growth through targeted M&A Kitron will consider carefully targeted acquisitions in two areas: Electronic Manufacturing services Competence, customers or market complementary to Kitron Product hardware company Competence complementary to Kitron Technology of importance to Kitron customers M&A: Financing of potential acquisitions Cash Cash and loan New bank financ ing NOK 100 million NOK million NOK million

26 Shareholder value Share price evolution Q2 Market CAP = 950 million ( from 300 million average 2013/2014) OSEBX NOK NOK Oct Sept

Financial targets Target 2016: Revenue BNOK 2.05 2.25 EBIT margin 5.3-6.

27 Financial targets Target 2016: Revenue BNOK EBIT margin % CCC 80 days ROOC 20% Dividend 30-60% of net profit Strategy 2020: Revenue BNOK 3 EBIT margin 7% CCC 50 days ROOC 25% Dividend 30-60% of net profit

EDB Business Partner ASA FOURTH QUARTER 2003 INTERIM REPORT

- 1 - EDB Business Partner ASA FOURTH QUARTER 2003 INTERIM REPORT Summary The EDB group reports its best quarterly earnings since the fourth quarter of 2001 All business areas report improved operating