Good morning, ladies and gentlemen, welcome to Kitron's Q4 results presentation. I'm Peter Nilsson, President and CEO of the Kitron Group. Joining me today is Cathrin Nylander, Chief Financial Officer. Let me start you off by giving you the highlights for the Q4 2014. Revenue was in line with Q4 2013, with a strong performance in the Defence/Aerospace sectors, as well as industrial. We saw a decline in the Offshore Marine sector. Profitability was in line with expectations, with all Kitron sites being profitable in Q4. Our EBIT margin was 3% in the Q4 , compared to 1.8% in the preceding quarter and 0.9% in the final quarter of 2013. The main reason for EBIT improvement was lower payroll costs.
Our order backlog shows strong improvement over the previous quarter and compared to last year. The drivers here are the defence and industrial sectors. Operating cash flow was favorable with NOK 12.9 million, both operating cash flow and net working capital performance have had a negative development compared to last year. Receivables and payables were consistent with our expectations, we had a disappointing performance with the management of inventory. We certainly have more to do, this quarter clearly shows that we're moving in the right direction. Cost initiatives are starting to take effect, in the Q4 , all of our business units were profitable. There's also encouraging news on the sales side. A strong order backlog gives us a good start in 2015.
Looking at some of the major orders that were signed in the Q4 , we received an order from the offshore industry worth NOK 25 million for delivery in 2015. This is very important considering the reduced order intake over the several past quarters within the offshore sector. Our production and deliveries will take place from our Kitron Arendal facility. We also signed a three-year agreement with Speed Identity, covering production and services for biometric identification systems. The value is at least NOK 30 million over three years, and production will take place at our Kitron plant in Jönköping, Sweden. Commenting on profitability in the quarter, again, all sites were profitable. The actions taken in Arendal, Norway continued to improve profitability. Our Johnstown, U.S. facility successfully ramped up both production and revenue by 50% compared to previous quarters last year.
Jönköping, Sweden shows significant improvement on profitability. Our Kaunas, Lithuania shows strong continued growth, primarily driven by customers in the industrial sector. Our Ningbo, China facility shows strong profitability driven by an increase in demand by customers in both industry and medical, as well as an increase of engineering services. In December, we took the decision to invest in our Arendal operations. We will move our operations from our, from the leased Hisøy plant to our own Kilsund facility. The Kilsund plant is owned by Kitron and was Kitron's main production facility from 1985 until 2005. We will make investments estimated at NOK 45 million in order to upgrade and expand the facility, as well as increasing efficiencies of the Arendal operations. The move is expected to take place early in 2016.
One-off costs in regards to this move were charged in the Q4 of 2014. Execution of the project is proceeding as planned. With that, I'll turn the presentation over to Cathrin for some further comments on our market development and full year performance.
Thank you, Peter. I will talk about the financial statements for Q4 2014. We have a strong industry growth in the Q4 . As Peter mentioned, the revenue ended at NOK 476 million on the same level as last year. We have an increase of NOK 94 million compared to Q3 , 24.6%. If you look at the different segments and their development compared to the same quarter last year, we see that the Offshore Marine is down 30.7%, Medical equipment is up 1.7%, Defence/Aerospace slightly down 3.3%, Energy/Telecoms up 4.9%, Industry a strong 19.5% increase compared to last year.
Looking at the share of total revenue, Offshore Marine are now at 10.3% compared to last year in the same period where they were at 14.9%. Medical equipment is at 27.9%, which is up from 27.4% last year. Defence/Aerospace is at 23.7%, down from 24.5% last year. Energy/Telecoms, 11.1%, up 0.5% from 10.6% last year, and industry at 27%, up from 20%, 22.6% last year. We see a shift in the share, specifically from industry, to industry from Offshore Marine. Looking at the revenue by country, we have a continued strong growth outside of Scandinavia, but also in Sweden, as we can see. Looking first at Norway. Norway ended at NOK 225 for the quarter, down from NOK 274 last year in the same period.
It's a reduction of 17.8%. As we will see later, the profitability has improved from the previous quarters this year in spite of the revenue reduction compared to last year. Sweden, up from NOK 110 million to NOK 123 million. It's an improvement of 12.1%. Lithuania, up from NOK 85 million to NOK 109 million, an increase of 27.7%. The others, which consist of China and U.S., they're increase from NOK 46 million to NOK 72 million, an increase of 56.5%. Again, looking at the share of the revenue compared to last year, Norway is now at 42.6%, and were at 53.2% last year. Sweden at 23.3%, up from 21.6% last year. Lithuania, 20.6%, up from 16.6%, and others at, that's China and U.S., at 13.5%, up from 8.9% last year. Very strong growth from many other sides. Improved profitability.
The quarter ended at NOK 14.3 million compared to NOK 4.3 million last year. It's the best quarter in EBIT in those five quarters, but also the highest EBIT since Q4 2012. In the figures for Q4, as Peter mentioned, we have one-offs in Arendal of NOK 6.9 million, but we also had one-offs in Q4 2013 of NOK 8.7 million related to the distribution center. Looking at the EBIT margin, it's now at 3%, including the one-offs, and we're at 0.9% last year, also including the one-offs. We have a very good development so far. The main reason for the increase is the reduction in payroll expenses and primarily due to the efficiencies made in Arendal, but also the fact that all sites are now profitable. That we can see here. Starting at Norway.
Norway ended at NOK 3.5 million, including one-offs of NOK 6.9 million. Adjusted for the one-offs, they would have ended at NOK 10.4 million, at the same level as last year, which is NOK 10.5 million, with a 17.8% reduction of revenue. The profitability has increased. As you can see here as well, they ended at 1.5%, including the EBIT margin with the NOK 3.5 million . Adjusted for the one-offs, they would have been at 4.6% compared to 3.8% last year. Sweden has increased from NOK 4.3 million last year to NOK 7.3 million this year and gone from 3.9% to 5.9% of EBIT margin. Lithuania from NOK 3.9 million to NOK 6 million and from 4,5%-5.5% In EBIT margin. Of course, China and U.S. ended positive at NOK 4 million and EBIT margin at 5.5% .
Last year, in the NOK 11 .5 million, as you can see, we had one-offs of NOK 18, NOK 8.7, so it's a substantial improvement despite the one-offs. Negative development on cash flow and the working capital. We see a cash flow decrease even though the quarter ended at a positive NOK 12.9 compared to NOK 51.5 in the same quarter last year. We are not really happy. The reason for this is that and of course, we're not because of the decrease, but the revenue level is on the same level as last year. We have increased profitability. The reduction in working capital is primarily due to increase of work in process due to projects that are temporary in work in process. We expect these to reverse, not before long.
You can also see that down here at the working capital increase going from NOK 525 - NOK 565 and also an increase from NOK 489 in the Q3 in 2014. Looking at the cash conversion cycle, it had also temporarily increased from 100 last year to 106 in the Q4 this year. As Peter said, a lot of attention is being put onto monitoring and handling our working capital better than we have. I would also like to spend some time on the financial highlights for the full year of 2014. We ended at NOK 700, NOK 1,751.3, which is an increase of 7.3% compared to 2013. The EBIT in total at NOK 30 compared to NOK 25 last year, which is a strong improvement in total compared to what we've seen previously this year.
Order backlog, as we mentioned, up about 20.9%. Operating cash flow, disappointing as also the increase in net working capital. For the year, we also see that we have positive net income after tax of NOK 24.3 million. According to our dividend policy, we distribute 30%-50%. The board proposes that the annual general meeting decides on a dividend of NOK 0.05 per share in the annual general meeting that will take place in April. That was short on the highlights for the total year. Now, Peter, I'll let you take on for the market development.
Thank you, Cathrin. Moving on to market development and outlook. As mentioned earlier, our order backlog is showing strong growth. In the defense sector, we see a strong development with more than NOK 144 million, or a 66% increase over last year. Energy and telecoms also drive the backlog with more than a 40% gain in demand. These growth sectors more than offsets the 20% decline we're seeing in the offshore marine sector. As to market development, in the offshore marine sector, primarily offshore, we're seeing a general adjustment to the conditions in the oil service market in Norway. Both our energy, telecoms, and industry-related products show strong demand and growth. Finally, closing with our outlook. For 2015, we expect growth and a clear improvement in profitability.
However, during the Q1 , the revenue outlook is slightly down sequentially due to seasonality. Growth continues to be driven by the Defence sector for the U.S. and for the Norwegian markets. Again, Energy and industry have a strong outlook. The Offshore Marine sector will continue have a reduction due to market conditions in Norway. We closely follow the development of the Offshore market and the fluctuations of currency in regards to any impact these may have to our operations. Thank you very much.