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Shareholder information

Share capital and stock market listing

Kitron ASA is a publicly listed company on the Oslo Stock Exchange (ticker code: KIT) in the OB Standard segment. The company is governed by Norwegian law.

KIT ListedDuring 2018, the share price moved from NOK 6.99 to NOK 8.70, an increase of 24.46 per cent. In addition, the company paid an ordinary dividend of NOK 0.35 in 2018, and an additional dividend of NOK 0.20, in total NOK 0.55. The Oslo Børs Main Index decreased by 1.8 per cent during the same period. The share price has varied between NOK 6.68 and NOK 10.84. At the end of 2018, the company’s market capitalisation was NOK 1 532.9 million. A total of 116.6 million shares were traded during the year, corresponding to a turnover rate of 66.2 per cent. For 2019 the company paid an ordinary dividend of NOK 0.40.

  • Share capital at 5 June 2019 was NOK 17 910 399
  • Number of shares: 179 103 990
  • Nominal value: NOK 0.10 each.

New Long-term incentive scheme 2019-2023 

In 2018 the Board introduced a new share option program for executive management comprising of up to 5 000 000 shares. The program is divided into four three-year sub programs, each with an allocation of 1 250 000 option, where the first program starts in 2019, followed by one program every year until 2023. The total program corresponds to approximately 3 per cent of the market capitalization.

The share option program entails that executive management, on certain terms, may be granted a right to subscribe for shares in Kitron at NOK 0.10 per share after a vesting period of three years. The number of options that are vested for each sub program, are linked to development of the market capitalization at Oslo Stock Exchange, adjusted for dividends and share buy-backs. For each program to vest fully, the market capitalization adjusted for dividends and share buy-backs must increase 50 per cent. The program starts to vest at an increase of 20 per cent, and will vest linearly between 20 per cent to 50 per cent. [KS1] 

Each sub program is capped at 200 per cent increase of the market capitalization, adjusted for dividends and share buy-backs. The program has a claw back clause. Each of the sub programs has a lock up-period of one year and a down-sale period of two years.

 

Mandatory notifications of trade and flagging announcements

Shareholder structure

At the end of 2018, Kitron had 5 016 shareholders, compared with 4 708 shareholders at the end of 2017. At the end of the year, the foreign shareholding amounted to 38.0 percent. At the balance sheet date, Vevlen Gård AS was the largest shareholder holding 5.96 per cent of the Kitron shares, followed by Nordea Nordic Small Cap Fund with 5.92 per cent and MP Pensjon with 5.72 per cent. Liquidity of the share was 100 per cent. The 20 largest shareholders held a total of 54.43 per cent of the company’s shares at the end of the year.

20 largest shareholders

Information and investor relations

Kitron wishes to maintain open communications with its shareholders and other stakeholders. Shareholders and stakeholders are kept informed by announcements to the Oslo Børs and press releases. Kitron’s website www.kitron.com provides information on Kitron’s business and financial situation. Interim financial statements are presented at meetings open to the general public and are available as webcasts at www.kitron.com.

Kitron reports all manufacturing orders exceeding NOK 20 million. The group also reports smaller orders if these are of strategic importance or significant in any other way.

The corporate management is responsible for communication activities and investor relations, and also facilitates direct contact with the chairman of the board and other board members.

IR CONTACT INFORMATION

Mandates

INCREASING THE SHARE CAPITAL

The ordinary general meeting of 30 April 2019 authorised the board to execute one or more share capital increases by issuing a number of shares maximized to 10 per cent of Kitron’s registered share capital at 30 April 2019. The total amount by which the share capital may be increased is NOK 1 761 926.10. The authority applies until the ordinary general meeting in 2020 but no longer than 30 June 2020. The authorization is limited to encompass capital requirements or issuance of consideration shares in relation to strengthening of Kitron ASA’s equity, acquisition of other companies or businesses, joint ventures or joint business operations, incentive programs for employees and acquisition of property and business within Kitron ASA’s purpose. The authority was exercised in May 2019 in connection with a settlement of a share program. The share capital was increased with NOK 291 139.90, and the authorized share capital of the Company is therefore NOK 17 910 399 per June 2019.

OWN SHARES

The ordinary general meeting on 30 April 2019 authorised the board to acquire own shares for a total nominal value of up to NOK 1 761 926.10 which is equal to 10 per cent of Kitron’s registered share capital at 30 April 2019. Under this authorization the company shall pay minimum NOK 1 per share and maximum the prevailing market price per share on the day the offer is made, provided, however, that the maximum amount does not exceed NOK 25 per share. The authority is valid until the ordinary general meeting in 2020 but no longer than 30 June 2020. The authority was exercised in May 2019.

Dividend

DIVIDEND POLICY

Kitron’s dividend policy is to pay out an annual dividend of at least 50 per cent 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.

DIVIDEND LAST SIX YEARS

YEAR AMOUNT PROPOSAL RESOLUTION PAYMENT
2018 NOK 0.40 per share 28 March 2019 30 April 2019 10 May 2019
2017 NOK 0.55 per share 23 March 2018 20 April 2018 4 May 2018
2016 NOK 0.25 per share 21 March 2017 25 April 2017 11 May 2017
2015 NOK 0.21 per share 18 March 2016 22 April 2016 4 May 2016
2014 NOK 0.05 per share 27 March 2015 22 April 2015 22 April 2015
2013 - - - -

External capital

The group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Kitron’s debt strategy is to support the overall financial flexibility of the group, and ensuring competitive terms and conditions on the group’s debt.

Kitron’s debt is largely short-term and related to factored accounts receivable (DnB Finans). The group has overdraft facilities with its main banking partner DnB that cover expected liquidity fluctuations during the year. A small share of the external capital is long-term.

The group’s interest-bearing debt attracts interest cost at the market based rate. Kitron has no financial instruments related to interest rates. The group does not hold any significant interest-bearing assets.

The gearing ratios at 31 December 2018 were as follows (amounts in NOK 1000):

Total borrowings 441 800
Cash and cash equivalents (45 654)
Net debt 396 146
Total equity 691 459
Total capital 1 087 605
Gearing ratio 36%

As of 31 December 2018 the total outstanding debt was NOK 441 800 million and split as follows (amounts in NOK 1000):

Long term loans  
Leasing debt 34 075
Bank loans 6 755
Current loans  
Debt to credit institutions
153 201
Factoring debt 197 138
Leasing debt 19 968
Other 30 663

Outstanding debt split per currency (amounts in NOK 1000):

NOK 140 394
SEK 65 436
EUR 110 819
USD 64 180
CNY 60 970
Total 441 800
  • Effective interest rates at 31 December 2018 2% – 5.9%.

Carrying amount of assets provided as security (amounts in NOK 1000):

Buildings and land 49 915
Machinery and equipment 60 395
Cash 10 166
Receivables 360 716
Inventory 392 412
Total 873 603

The company’s financing agreements include covenants relating to such factors as the company’s equity, earnings and borrowing base.

Prospectuses

No prospectuses or information documents have been prepared in the last three years.

Account manager for Kitron

  • DnB Bank ASA
  • Verdipapirservice
  • P O Box 1600 Sentrum
  • NO-0021, OSLO
  • Norway
  • Phone: +47 23 26 80 21
  • Fax: +47 22 48 11 71
  • E-mail: kua@dnb.no

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