Welcome to this presentation of Kitron ASA's Q4 results, also preliminary numbers for 2013. My name is Dag Songedal, I will give this presentation together with our CFO, Cathrin Nylander. First, we will go into the financial highlights for the Q4 . We achieved revenue growth, but we have reduced profitability. The revenue was at a solid level, ending at NOK 476.3 million, which is a 3% increase compared with the same period in 2012. However, the EBIT level was significantly lower than last year. We were down 82%, partly due to the accruals related to the close down of the distribution center in Kaunas, which was announced in December. We will also give further explanations to the deviation later in the presentation.
Looking at the other highlights, the order backlog was down by 7.5%, while the operating cash flow was positive by NOK 51 million, but then lower than the same number in 2012. The net working capital was slightly up, ending at NOK 521.7 million. We go to the main contracts we closed in the Q4 . We had a positive quarter related to new contracts and also extensions of existing ones. We signed an extended contract with Maquet. Maquet is one of our large customers within the medical segment. We deliver mechanical and electronic-based products for medical, different medical applications. This is an important contract for Kitron, and especially for the factories in Ningbo and in Sweden, where the manufacturing will take place.
Kitron did also receive the first prototypes from Cassidian. This is an important customer which we have worked towards for a long period of time. The first orders are not really important in the terms of revenue, but it's an opener for further orders in the future. We will deliver power supply units for one of Cassidian's Cassidian Electronics target acquisition systems. The manufacturing of these products will take place in Kaunas in Lithuania. We did also announce that we will expand the business towards Husqvarna. Husqvarna is one of the large Swedish industrial companies. It has been our customer in Kitron for some years. With the new scope of the contract, we will expand the volume for Husqvarna.
We expect the revenue level to be at approximately NOK 25 million for the coming years. The manufacturing will take place in Kaunas and in Jönköping. In December, we did announce that we would stop the plans to establish a distribution center in Lithuania. This has been an ongoing project for 1 to 2 years, and it has also been announced to the stock exchange in the past. We did a thorough evaluation of the total business case in October, November last year, and our conclusion was that we saw that the project would be more costly and more complicated to execute than was expected in the original business case. Our decision was therefore to close the project down in order to avoid increased operating costs for the future.
This close down did, however, have a one-off cost, totaling to NOK 8.7 million that was taken in Q4. In addition, we have had operating running costs during 2013 of between NOK 2 million and NOK 3 million related to the distribution center project. We have also done some changes in our sourcing organization. Part of that change is linked to the fact that we decided to close down the distribution center, but we do also do changes beyond that. One of our main targets is to simplify the organization. We want a more close cooperation with the corporate sourcing organization and the sourcing people, located at the different manufacturing sites.
We have different targets we have set, which we want to achieve in the future, and one of the important ones are to have a significant reduction in the number of suppliers. In order to achieve the best possible terms and conditions towards the suppliers, we need to consolidate the volume. As announced some weeks ago, the Chairman of the Board, Asa-Matti Lyytinen, has decided to resign from the board. He has been the chairman since 2010, and he will stay in the position until a new chairman has been elected. There has been called for an extraordinary general meeting on February 21st, for the election of the new board. We move on to the financial statements, and then I leave the word to Cathrin.
Financial statements Q4 2013. We have growth within Defense and Aerospace, and Industry segments. We have an increase of 3.1% compared to last year to NOK 476 million. We see that the Offshore and Marine segment is reduced with 18.4% compared to last year. It is now at a revenue share of 14.9% down from 18.8% last year. For the Medical segment, we also see a reduction of 7.9% and now at 27.4%, down from 30.4% last year. The Medical segment has had the same development all year.
Defense and aerospace show quite an extensive growth for the quarter, which is up 34.5%, and now at a revenue share of 24.5% from 18.8 last year. For the Energy/Telecoms, they're about the same level as last year, a slight reduction, -4.3%, and now at a level of 10.6%, down from 11.4% last year. The Industry segment, an increase of 14.3% and now at 22.6%, up from 20.3 last year. When we look at the revenue by country, we see a continued growth in Lithuania.
Norway is at approximately at the same level as last year, an increase of 1%, and now at a revenue share of 53.2% and at NOK 274 million. Sweden shows a reduction of 14.5% compared to last year and has had a reduction all year compared to 2012, primarily due to the fact that some of the existing customers had a lower demand this year. Lithuania, up 18.1 compared to last year, and now at 16.6% and NOK 85 million of revenue. The others, they're up at 20% and are now at NOK 46 million, a slower build-up than compared to the previous years.
When we look at the EBIT, we have a significant reduction in EBIT for the quarter. We have a reduction of NOK 20 million, down to NOK 4.3 from NOK 24.4 last year. One of the major contributors is the one-off cost relating to the termination of the distribution center. It's partly operational expenses of NOK 4.7 million and depreciation and impairment of NOK 4 million. In addition, we've had operational costs for distribution center in the quarter, about NOK 1 million. What we also see that we see a change in the revenue mix. We have a higher degree of low-margin products with a higher payroll content, which is also affecting the contribution margin. We also see a margin pressure both from existing customers and new customers.
What we can see now is that we had the net margin is reduced from 24.6% last year to 21.8% for this quarter, quite a substantial reduction. Of course, the profitability situation is unsatisfying and measures are initiated. As mentioned by Dag, there are measures initiated within the sourcing organization, we're also continuing the measures that we started in 2013. When we look on the EBIT by country, we can see that the Norway profitability is under pressure. For Norway, specifically, the revenue mix is affecting them. The low-margin products have increased substantially in value for the last quarter and is down from NOK 19.9 million– NOK 10.5 Million.
The EBIT margin is going from 7.3%– 3.8%. Sweden, it's primarily the low revenue that they've had that makes their EBIT decrease from NOK 8 million– NOK 4.3 million, and then the margin from 6.2%– 3.9%. For Lithuania, as we've said, we see higher revenue and growth, but at lower margins. The EBIT is at the same level as last year. For the other units, we have a decline from a loss of NOK 0.7 million– NOK 11.5 million, which is primarily due to the accrual for the distribution center at NOK 8.7 million.
When we look at the balance sheet, we see that we have positive cash flow at NOK 51 million, but it is a reduction for the NOK 4.8 million that we have last year, a reduction of 40%. The causes are 2. We have reduced profitability and the working capital increase. The working capital is going from NOK 505 million– NOK 522 million this quarter, an increase of 3.2%. It's primarily increase in inventory. We see we have a reduction in Q4 compared to Q3, but it's not as quite a substantial reduction as we had last year. The reason for this is that we're building up for activity during Q1, but we're also having an increase in products that we have hold for customers as the cause of the increase.
Now some short highlights for 2013, the total year. It's a year with reduction in revenue and margin pressure. The revenue ended at NOK 1,631.6 million, a reduction of 3.7% compared to last year. What we see that for all year, we've had a reduced activity level in Sweden, which has been partially compensated by the growth in Lithuania and the other units, but nevertheless, a reduction. For the EBIT level, we have a quite a substantial decrease from approximately NOK 72 million– NOK 25.1 million. The reduction was 65.1%. It is the decreased margins, the lower revenue, and the accruals for the distribution center that are the main arguments for this.
As mentioned, the order backlog is down with 7.5% to NOK 718.1 million. The operating cash flow for the year is at NOK 28.6 million, a reduction with 32.7%. Still positive, but still lower than we hoped for. The net working capital, again, an increase of 3.2% at NOK 521.7 million. If you look at the revenue for the year and the revenue distribution, we can see that we have had a substantially increased activity during the second half of 2013 compared to the first half. We had a weak first half, a reduction with 6.7% compared to the year before. We see now that the second half is on the same level as last year.
We see Defense aerospace and Industry show growth overall, and we've had a reduced activity in Sweden all year more or less that I'll explain. We see a good second half. Now for some market information from Tore.
If we look at the order backlog, we have seen a quite significant reduction in the Q4 . Of course, the reduction is large compared with what we had at the end of the Q3 , but it's also lower than what we had in the previous quarters. The main reason is reduction of long-term orders within the defense aerospace and offshore marine segments, and it's mainly related to Norway. What we see is that in the Industry segment, we have increase in the order backlog. We also see an increase in the order backlog for both Sweden, Lithuania, and U.S. compared with last year. We do not see that this reduced order backlog will have any significant impact on the revenue level for the next two quarters.
If you look into the market development, for the offshore marine segment, we foresee a stable demand for the next 2 quarters. For the second half of 2014, we still have low visibility. This is a segment with historical fluctuations from quarter to quarter. For the Medical equipment segment, we expect a long-term positive development. We have strong customers. We have mentioned one of those today, Maquet. But we also have several other strong customers which we expect will have growth in the future, and we are also working to attract new customers within this medical segment, mainly in Germany. For the defense aerospace segment, we have a very strong quarter behind us. The Q4 was a really strong quarter for the defense segment.
We expect the long-term prospects for the defense segment also to be good for the future. We also know that the manufacturing for the defense customers are more project-based, and therefore we might have variations from quarter to quarter. For the Energy/Telecoms segment, we expect growth in the coming quarters, mainly driven by some individual large customers, existing customers and their projects. For the Industry segment, we've had a positive development for at least 3 quarters now, and we expect that positive trend to continue. That is both Scandinavian industrial customers and is industrial customers from Germany. If you look at the outlook, we expect a positive development in the Swedish and German market, and hence we do also expect growth in the factories in Sweden and in Lithuania.
Growth is also expected in China, whereas the development in the Norwegian market is more uncertain. The market outlook is of course an important part and important information from, for Kitron. When we look into the numbers we have presented today, the most important part for Kitron in the months to come will be to improve profitability. The main task for us for next months will be to reduce cost and improve profitability. Of course, together with giving our customers the best possible service. We do of course understand that the profitability levels we are presenting today is not at the level we can have for the year to come. That was what we wanted to present today. Thank you for joining this webcast, have a nice day. Thank you.