1ANNUAL REPORT 2021
KITRON IN BRIEF
2ANNUAL REPORT 2021
KITRON IN BRIEF
3ANNUAL REPORT 2021
CONTENT
Kitron in brief 4
Board of Directors’ report 7
Consolidated annual accounts and notes 14
Notes to the consolidated nancial statements 19
Annual accounts and notes Kitron ASA 60
Notes to the nancial statements Kitron ASA 64
Independent auditor’s report 82
Responsibility statement 87
Denition of Alternative Performance Measures 88
Corporate governance 89
Sustainability report 2021 98
Shareholder information 121
Board and management 124
Articles of association 129
Addresses 131
4ANNUAL REPORT 2021
KITRON IN BRIEF
Kitron is an international Electronics Manufacturing
Services (EMS) company. The company is
located in Norway, Sweden, Denmark, Lithuania,
Germany, Poland, the Czech Republic, China
and the US and has about 2500 employees.
Kitron manufactures both electronics that are
embedded in the customers’ own products, as
well as box-built electronic products. Kitron also
provides high-level assembly (HLA) of complex
electromechanical products for its customers. It
also increasingly provides various related services
within development, industrialisation, supply chain
management, logistics and aftermarket services.
Kitron is most competitive within complex
manufacturing processes that require niche
expertise. Kitron focuses its sales and marketing
activities within ve key sectors:
• Connectivity
• Electrication
• Industry
• Medical devices
• Defence/Aerospace
The group has a balanced sales mix among its
market sectors, which makes Kitron diversied
and puts the group in a good position to handle
shifts in demand.
The company has strong, long-term relationships
with large multinational customers.
Flexible turnkey supplier
Kitron’s services range from development and
design, through industrialisation, sourcing
and logistics, to manufacturing, redesign and
upgrading of products in order to extend their
lifespan. Kitron endeavours to achieve seamless
integration with customers and suppliers.
The company is working to further enhance its
competitiveness by expanding its range of services
in those parts of the value chain that demand high
levels of expertise. The group is constantly striving
to optimise the sourcing function, manufacturing
process and logistics in order to reduce its cost
base.
Quality assurance
The group measures quality in all processes.
Continuous quality improvement is achieved
through training and the implementation of
programs such as Six Sigma, LEAN Manufacturing,
5S and 7W. Kitron is striving to achieve superior
quality and thereby create a competitive advantage
relative to other EMS companies.
Global sourcing
Kitron’s global sourcing is responsible for
performing sourcing activities for the whole
group, working in close connection with Kitron’s
local sourcing. Kitron’s global sourcing consists
of dedicated specialists working directly with
carefully selected manufacturers and distributors.
Continuously monitoring the market globally,
Kitron is able to negotiate competitive prices and
ensure a reliable supply of components.
Vision and values
Kitron’s vision is to provide solutions that deliver
success for its customers. Kitron shall contribute
to develop customers’ businesses into leading
companies within their respective markets.
The company’s values are commitment, innovation
and engagement. We are committed to customers,
suppliers, shareholders, colleagues, sustainability
and the environment, we foster creativity, striving
for even better processes, services and solutions,
beneting both our customers and employees,
and individuals and teams are provided equal
opportunities for growth, development and
realization of their potentials.
Strategy
The group will continue to pursue protable
growth in the Northern European, US and Chinese
EMS markets, targeting professional customers.
Kitron’s current strategy contains three key
elements: accelerated organic growth, continuous
operational improvements and growth through
targeted acquisitions.
Accelerate organic growth
Kitron will continue to increase market shares
in its Nordic home markets by leveraging its key
competences and competitive edge. There will
be a particular focus on gaining market share
in Northern Europe. Germany, China & Asia and
the US are large markets where Kitron sees
attractive opportunities. The German operation
KITRON IN BRIEF
5ANNUAL REPORT 2021
KITRON IN BRIEF
0
200
400
600
800
1000
is focusing on sales and technical services while
the manufacturing will be performed elsewhere,
primarily in Lithuania and Poland. Kitron has
expanded its factory in Kaunas, Lithuania, and
in 2019 production was started at a new site in
Grudziądz in Poland, further increasing capacity in
Eastern Europe.
The company is also increasing service sales,
contributing both to increased revenues and
margin expansion.
In addition to targeting new customers, Kitron
sees substantial opportunities in deepening its
relationships with existing customers, many of
which are large, complex multinationals with a
number of different divisions with potential for
Kitron.
Continuous operational improvement
Kitron focuses on reducing the cost base through
global sourcing, increased manufacturing
eciency, system and process improvements
and transfer of manufacturing and services to
lower-cost countries. Within all these areas, there
are ongoing programs and clear targets. Kitron’s
employees and their competences are key factors
in fullling the company’s strategy. In the future,
innovative use of advanced manufacturing
technology will increasingly determine the
competitiveness of Kitron.
Growth through targeted acquisitions
In December 2021, Kitron agreed to acquire the
Danish EMS company BB Electronics A/S. This
added production facilities in Denmark, China
and the Czech Republic, and gave Kitron a strong
position in the Danish market.
The company intends to pursue further M&A
activities to grow and will explore M&A value
creation to grow the customer base, realize
synergies and expand margins.
Kitron’s history
Kitron has its origin in companies which were
established in the 1960s in Arendal, Norway.
The Kitron name was established in the 1980s,
and Kitron’s business idea changed to providing
services relating to the manufacturing and
assembly of electronics and industrial products.
Kitron was listed on the Oslo Stock Exchange in
1997.
In order to strengthen its market position and
competence, Kitron has carried out several
mergers and acquisitions in Norway, Sweden,
Lithuania and the US.
Based on this history, Kitron has developed into a
leading Scandinavian electronics manufacturing
services company with production facilities on
three continents.
Norway
Sweden
459
983
873
634
763
CEE
838
356 339
217
Other
Figure 1: Full time employees 2021,
Geographical description
Figure 2: Revenue per market sector
in 2021, Revenue in NOK million
6ANNUAL REPORT 2021
KITRON IN BRIEF
7ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
Solid year despite supply constraints
Kitron’s revenue for the year reached NOK 3 711.4
million (NOK 3 963.9 million), which represented
a 6 per cent decrease compared with 2020.
The decrease partly reects that there was
extraordinary demand within the Medical devices
market sector in 2020 and partly a challenging
material supply situation in 2021. EBITDA for
the group reached NOK 341.9 million compared
to NOK 414.4 million in 2020. Net prot for the
year amounted to NOK 152.8 million (NOK 213.1
million), corresponding to NOK 0.85 per share
(NOK 1.19). Towards the end of the year, Kitron
announced the acquisition of BB Electronics AS.
The Board of Directors will, as a consequence of
the investment in BB Electronics and the future
capital needs of the company, propose to the
Annual General Meeting an ordinary dividend of
NOK 0.25 per share for the nancial year 2021.
Last year, the ordinary dividend was NOK 0.70.
The Board also has decided to change the Kitron
dividend policy into: “Kitron’s dividend policy is to
pay out an annual dividend of 20 per cent to 60
per cent of the company’s consolidated net prot
before non-recurring items”.
In the Annual Report 2020, Kitron indicated an
expected revenue range of between NOK 3 900
and 4 200 million and an EBIT margin of 6.8 to 7.4
per cent for 2021. Both gures ended below the
indicated ranges, primarily due to constraints in
the supply chain and a COVID-related lockdown
of Kitron’s facility in Ningbo, China. Demand,
however, remained very strong throughout 2021.
The business
Kitron’s business model is to provide manufacturing
and assembly services for products containing
electronics. The business model covers the whole
value chain from development, industrialization,
purchasing, logistics and maintenance/repair
to redesign. For customers having Kitron as
their professional manufacturing partner, this
means increased exibility, reduced costs and
improved quality. The industry requires focus on
manufacturing eciency and cost reduction.
Hence, many OEMs choose to focus on their own
core competences and partner with specialized
EMS (Electronics Manufacturing Services)
providers such as Kitron. When selecting an EMS
partner, geographical proximity and access to
competitive manufacturing play a crucial role in
the customer’s choice of supplier. With its global
presence, Kitron is well placed in this market.
The company has operations in Norway, Sweden,
Denmark, Lithuania, Germany, Poland, the
Czech Republic, China and the United States. All
employees have been certied in accordance with
international quality standards for the applicable
manufacturing.
Market sectors
Kitron’s services are most competitive within
complex manufacturing processes that require
niche expertise. Kitron focuses its sales and
marketing activities within ve key sectors:
Connectivity, Electrication, Industry, Medical
devices and Defence/Aerospace.
The order backlog ended at NOK 2 827.1 million,
an increase of 41 per cent compared to last year,
reecting a strong demand situation and partly
delays caused by the material shortage situation.
Connectivity
Revenue in the Connectivity sector increased by
39 per cent and ended at NOK 458.9 million in
2021. The sector accounted for 12 per cent of the
group’s total revenues.
Kitron’s Connectivity sector is focused on
connected devices. Many of these devices
are sensors, continuously feeding data into
increasingly advanced software, utilizing articial
intelligence to make predictions and improve
eciency and safety. Examples are multiplying,
in everything from industrial control systems
to medical devices monitoring vital functions
and modern cars, containing many sensors
communicating with the Internet. Another part of
the connectivity market sector is communication,
which supplies the backbone for sensors and IOT.
Typical products here are wireless communication,
optical transmission and networking products. In
the coming years, Kitron expects above-average
growth in this sector.
Electrication
Revenue in the Electrication sector increased
by 5 per cent and ended at NOK 983.2 million in
BOARD OF DIRECTORS’ REPORT
8ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
2021. The sector accounted for 26 per cent of the
group’s total revenues.
Kitron’s Electrication sector is focused on the
megatrend that sees the world increasingly moving
to renewable energy and electrication. Examples
are battery management, power grid transmission,
power and electric drive management, charging
and fuel cell technology. Kitron is involved with
electrication from the power grid to end-user
products, from control systems for offshore
wind power to battery management systems and
charging stations. In the coming years, Kitron
expects above-average growth in this sector.
Industry
Revenue in the Industry sector increased by 22 per
cent and ended at NOK 872.7 million in 2021. The
sector accounted for 24 per cent of the group’s
total revenues.
Within the Industry sector, Kitron operates
and delivers a complete range of services
within industrial applications like automation,
environmental, material warehousing and security.
The Industry sector consists of three main product
areas: control systems, electronic control units
and automation.
Medical devices
Revenue in the Medical sector decreased by 37
per cent and ended at NOK 633.5 million in 2021.
The decrease is explained by the exceptional
Corona-related volumes within Medical devices
being normalized from 2020 to 2021. The sector
accounted for 17 per cent of the group’s total
revenues.
The medical device sector consists of the
product areas diagnostics, life support, surgical,
hospital and home care. Kitron is especially
strong in ultrasound and cardiology systems,
respiratory medical devices and Lab/IVD (In-Vitro
Diagnostics).
Defence/Aerospace
Revenue in the Defence/Aerospace sector
decreased by 21 per cent and ended at NOK
763.1 million in 2021. The decrease is partly due
to project delays related to the material shortage
situation and effects of the Corona pandemic. The
sector accounted for 21 per cent of the group’s
total revenues.
Aerospace is mainly navigation and communi-
cation equipment for civil and military avionics.
Defence is primarily communication, encryption,
and surveillance systems.
Defence spending has been growing over the past
years, and the high level of activity in the defence
sector continues. However, this sector is to a large
degree project based, and the timing of major
projects will inuence the revenue level for the
particular year.
Important events in 2021
Constraints in supply chain
The component supply situation was dicult
throughout 2021, with material decommitments
and new delivery dates, substantially limiting
Kitron’s ability to turn demand into revenues.
Impact of the corona pandemic
The corona pandemic continued to impact Kitron’s
business in 2021, although the overall impact on
health and operations was limited. Demand for
ventilators surged in 2020, and we concentrated
resources to meet this. As we moved into 2021,
the demand for ventilators, and consequently
revenues within the Medical devices market sector,
normalized. Towards the end of 2021, Kitron’s
facility in Ningbo, China, had to stop production
for a limited period due to a lock-down in the area
because of a minor corona outbreak.
Acquisition of BB Electronics
In December 2021, Kitron announced an
agreement to acquire the Danish EMS company
BB Electronics A/S, which has production facilities
in Denmark, China and the Czech Republic. BB
Electronics is a full-service EMS provider based
in Horsens, Denmark. The group had revenues
of about DKK 1,000 million in 2021 and about
750 employees and has over the past years
grown signicantly, both organically and through
M&A. The customer base is concentrated within
connectivity and industry. The acquisition was
completed early in January 2022.
The purchase price for the acquisition was 663.9
million DKK and was nanced through a share
issue and a term loan over 5 years. The company
is expected to have a positive contribution to the
cash ow.
9ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
Share Issue
On 22 December 2021, the company allocated
17,910,399 new shares in a private placement at a
subscription price of NOK 19.50 per share, raising
net proceeds of approximately NOK 340 million.
The purpose was to nance part of the acquisition
of BB Electronics.
Financial statements
The Board of Directors believes that the annual
nancial statements provide a true and fair view
of the net assets, nancial position and result
of Kitron ASA and the Kitron group for the year.
The group’s consolidated nancial statements
are presented in compliance with International
Financial Reporting Standards (IFRS) as adopted
by the EU.
Prot and loss
Operating revenue for 2021 amounted to NOK
3 711.3 million (NOK 3 963.9 million), which
represented a 6 per cent decrease compared with
2020. Adjusted for foreign exchange effects in
consolidation, the decrease was 3 per cent.
The order backlog at the end of 2021 amounted
to NOK 2 827.1 million, compared to NOK 2.005.5
million at the end of 2020. Kitron recognizes rm
orders and four-month customer forecasts in
the order backlog, while frame agreements and
similar are not included (beyond the four-month
forecast).
In absolute numbers, the order backlog increased
the most in the Electrication market sector.
Percentagewise, the strongest growth was in the
Connectivity sector.
The number of full-time equivalents (FTE)
decreased from 1 805 at the end of 2020 to 1 749
at the end of 2021. The number of FTE in lower-
cost regions now accounts for 68 per cent of the
total. The group’s payroll expenses increased and
amounted to NOK 719.1 million in 2021 compared
with 671.4 million in 2020. The payroll expenses
as a percentage of revenue increased to 19.4
per cent (16.9 per cent in 2020). The increase is
partly explained by ineciencies due to material
shortages.
Kitron performs development, industrialization
and manufacturing services for its customers
and may perform research services related to
such projects. Kitron’s development activities on
the company’s own account are limited and are
primarily aimed at planning and implementing
productivity improvements, building competency
and enhancing quality. Such costs are expensed
when incurred.
Net nancial costs amounted to NOK 36.6 million.
The corresponding gure for 2020 was a net
cost of NOK 38.5 million. Kitron’s pre-tax prot
for 2021 amounted to NOK 204.2 million (NOK
274.1 million). All tax losses carried forward in the
businesses in Norway and USA are capitalised by
December.
The group’s net prot for the year amounted
to NOK 152.8 million (NOK 213.1 million). This
corresponds to earnings per share of NOK 0.85
(NOK 1.19). Diluted earnings per share were NOK
0.84 (NOK 1.18).
The Board of Directors will, as a consequence of
the investment in BB Electronics and the future
capital needs of the company, propose to the
Annual General Meeting an ordinary dividend of
NOK 0.25 per share for the nancial year 2021.
Last year, the ordinary dividend was NOK 0.70. The
Board also has decided to change the dividend
policy into: “Kitron’s dividend policy is to pay out
an annual dividend of 20 per cent to 60 per cent of
the company’s consolidated net prot before non-
recurring items”.
Cash ow
In 2021, Kitron’s cash ow from operating activities
was NOK 126.3 million (NOK 237.0 million). The
decrease is mainly related to a buildup of inventory
due to the material shortages situation. Net cash
ow from investing activities in 2021 ended at
negative NOK 46.0 million (negative NOK 59.0
million).
Net cash ow from nancing activities was positive
NOK 225.4 million (negative NOK 142.0 million).
Kitron enters into nancial leasing agreements
when applicable. The leasing obligation is
recognised as debt.
In general, Kitron expects to generate sucient
cash to nance the operation in the foreseeable
future.
10ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
Balance sheet and liquidity
Total assets on 31 December 2021 amounted to
NOK 3 309.4 (NOK 2 654.8 million). At the same
time, equity amounted to NOK 1.228.0 million
(885.7 million), and the equity ratio was 37.1 per
cent (33.4 per cent).
Inventories ended at NOK 880.3 million at the
end of the year (NOK 545.0 million). Contract
assets ended at NOK 400.6 million, compared to
NOK 386.7 million last year. Controlling inventory
is a major focus area for the company’s ongoing
improvement program, but in 2021 inventory levels
were unusually high due to the supply constraints.
Accounts receivable ended at NOK 864.6 million
(NOK 834.5 million). Overdue receivables are low,
and credit losses were negligible during 2021.
Accounts payable ended at NOK 917.8 million
(NOK 702.4 million).
On 31 December 2021, the group’s interest-bearing
debt was NOK 999.4 million (NOK 910.6 million).
The debt consists mainly of long-term bank debt,
short-term bank debt, factoring and leasing.
Cash and cash equivalents amounted to NOK
428.0 million at the balance sheet date (NOK
152.6 million). Of this, NOK 338.8 million was paid
out early in January 2022 as part of the purchase
of BB Electronics. NOK 10.5 million was restricted
deposits (NOK 21.6 million). The group’s liquidity
situation is satisfactory.
Risk factors and risk management
Kitron is exposed to nancial risks and has
consequently implemented procedures for risk
management that are designed to reduce possible
negative effects.
The group is exposed to uctuations in currency
exchange rates and has net cash inow in NOK
and SEK. A strengthening of these currencies
would consequently have some positive impact
on the group’s performance. However, revenues
and costs in foreign currencies are in general
largely balanced and exchange rate risk over time
is consequently limited.
The group is normally allowed to adjust sales prices
with customers when currencies uctuate outside
agreed upon ranges. Other hedge agreements are
usually not in use.
The credit risk for the majority of the company’s
customers is insured in accordance with the
terms of the company’s factoring agreement. The
company is therefore only exposed to credit risk
on customers where the credit risk is uninsured.
Kitron has only incurred immaterial bad debt
costs.
Kitron’s debt is a combination of long-term debt
and short-term debt related to factored accounts
receivable. The latter means that uctuations in
revenue impact the company’s liquidity. The group
has overdraft facilities that cover expected liquidity
uctuations during the year. The Board considers
the group’s liquidity to be sucient.
The group’s interest-bearing debt attracts interest
cost at the market-based rate. Kitron has no
nancial instruments related to interest rates.
The group does not hold any signicant interest-
bearing assets.
Kitron has established Directors’ and Ocers’
insurance for personal liability of its Board
members, CEO and other management members.
Social responsibility
Kitron has implemented Ethical guidelines that
reect Kitron core values and Kitron corporate
social responsibility. Kitron has implemented an
ethical committee whose task is to review and
suggest updates of ethical guidelines, decide
and/or advice in ethical dilemmas, conduct risk
analysis and implement relevant actions and
make periodical reviews.
Kitron’s Sustainability report for 2021 is presented
in the Annual report. The report is prepared
in accordance with The Oslo Stock Exchange
Guidelines for Sustainability Reporting and
Euronext Guidelines to issuers for ESG reporting.
The report has been reviewed and approved by the
Board.
Health, safety, security and environment (HSSE)
At the end of 2021, the group employed a total of
1 749 full-time equivalents. For further employee
numbers, see the sustainability report. The
competence of our employees represents a major
asset and competitive advantage for Kitron.
There were no serious work-related accidents in
2021.
11ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
Sick leave was 3.3 per cent, the same as in 2020.
The Board considers the working environment to
be good, despite challenges posed by the global
pandemic in 2021, and Kitron participates in the
Great Place to Work survey in order to develop an
even better working environment.
Kitron does not pollute the external environment
to any material extent. Several of the group’s
manufacturing units are certied in accordance
with the NS ISO 14000 series of environmental
management standards.
Personnel and organisation
Kitron considers the competence of employees to
be the ultimate competitive advantage. Securing
required and relevant competence now and
for the future is a fundamental priority, and a
Kitron competence roadmap has been outlined.
Individual career and competence development
is part of the current performance management
process. The digital learning platform, Kitron
Academy, was launched in 2018, and further
developed and supplemented with learning and
development activities in the following years. The
platform offers the possibility to report on training
activities per individual and at group level. In 2021,
51 470 hours were registered as spent on training,
compared to 42 797 in 2020.
Equal opportunities
Kitron’s basic view is that people with different
backgrounds, irrespective of ethnicity, gender,
religion, sexual orientation or age, should
have the same opportunities for work and
career development at Kitron. The company’s
manufacturing factories have traditionally
employed a higher proportion of women. Women
represented 54 per cent of the Kitron workforce
in 2021. Out of 108 managers (managers having
direct reports) 27 per cent are female and 73 per
cent are male.
Kitron is taking its social responsibility seriously.
In addition to ensuring that the work is carried
out safely, this involves respecting the freedom of
association and not accepting any form of forced
labour, child labour or work-related discrimination.
The average pay for men and women vary due
to differences in job categories and years of
service, not because of gender. Women’s pay level
compared to men’s per location can be found in the
sustainability report. No gender-based differences
exist with regard to working hour regulations or
the design of workplaces.
Indirect functions include management
employees, staff and other support functions.
The employees in the subsidiary management
teams are predominantly male. The corporate
management team has 8 male and 1 female
members after the acquisition of BB Electronics.
The composition of the Board complies with the
requirements in the Norwegian Public Limited
Companies Act regarding gender balance.
Corporate governance
The Kitron Board has adopted policies for
corporate governance to safeguard the interests
of the company’s owners, employees and other
stakeholders. These principles and associated
rules and practices are intended to create
increased predictability and transparency, and
thus reduce uncertainties connected with the
business. Kitron endeavours to have in place
procedures that comply with the Norwegian code
for corporate governance. The Board’s review of
corporate governance is presented in the annual
report.
Salaries and other remuneration to senior
executives
The Board of Directors has a separate
Remuneration Committee, which deals with all
signicant matters related to wages and other
remuneration to senior executives before the
formal discussion and decision by the Board of
Directors. In line with the Norwegian Companies
Act, the Board of Directors has also prepared a
report on renumeration to senior executives that
is awailable at the companies website.
Net prot (loss) of the parent company
The Parent Company Kitron ASA recorded a prot
of NOK 133.8 million for 2021 (NOK 77.7 million).
The Board of Directors proposes the following
allocations for Kitron ASA:
Dividend NOK 49.3 million
Transferred to other equity NOK 84.5 million
Total allocations NOK 133.8 million
12ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
There have been no events to date in 2022 that
signicantly affect the result for 2021 or valuation
of the company’s assets and liabilities at the
balance sheet date. The Board conrms that the
conditions for the going concern assumption have
been satised and that the nancial statements
for 2021 have been prepared on the basis of this
assumption.
Outlook
For 2022, Kitron expects revenue between NOK 5
200 and 5 800 million, including BB Electronics.
Operating prot (EBIT) is expected to be between
NOK 330 and 430 million. Growth is driven by the
Electrication, Connectivity and Industry market
sectors. Currently, the growth is constrained by
the material supply situation.
The Board emphasizes that every assessment of
future conditions necessarily involves an element
of uncertainty.
Oslo, 22 March 2022
Tuomo Lähdesmäki
Chairman
Gro Brækken
Deputy Chairman
Christian Jebsen
Board Member
Espen Gundersen
Board Member
Petra Grandinson
Board Member
Maalfrid Brath
Board Member
Bjørn Gottschlich
Employee Elected Board Member
Tanja Rørheim
Employee Elected Board Member
Jarle Larsen
Employee Elected Board Member
Lars Peter Nilsson
CEO of Kitron ASA
13ANNUAL REPORT 2021
KITRON IN BRIEF
14ANNUAL REPORT 2021
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
CONSOLIDATED ANNUAL ACCOUNTS
Consolidated income statement
NOK 1000 Note 2021 2020
Revenue
Revenues 5, 6 3 711 373 3 963 876
Operating costs
Cost of materials 2 449 714 2 645 855
Payroll expenses 8, 19, 23, 29 719 144 671 438
Depreciation and impairments 12, 13, 14 101 048 101 828
Other operating expenses 27, 29 197 050 225 211
Total operating costs 3 466 956 3 644 332
Other gains/(losses) 7 (3 604) (6 970)
Operating prot/(loss) 240 813 312 574
Financial income and expenses
Finance income 9 3 878 10 896
Finance expenses 9 (40 525) (49 383)
Net nancial items (36 648) (38 487)
Prot/(loss) before tax 204 165 274 087
Tax 10 51 323 61 031
Net prot/(loss) 152 843 213 056
Allocation
Shareholders 152 843 213 056
Earnings per share for that part of the net prot/(loss) allocated to the company’s shareholders (NOK per share)
Basic earnings per share 11 0.85 1.19
Diluted earnings per share 11 0.84 1.18
The notes on pages 19 to 59 are an integral part of the consolidated nancial statement.
15ANNUAL REPORT 2021
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
Consolidated statement of comprehensive income
NOK 1000 Note 2021 2020
Net prot/(loss) 152 843 213 056
Other comprehensive income:
Items that will not be reclassied to prot and loss
Actuarial gain / losses pensions (299) (179)
(299) (179)
Items that may be subsequently reclassied to prot and loss
Gain / losses forward contract (5 831) -
Exchange differences on translation (10 588) 20 231
(16 419) 20 231
Total other comprehensive income (16 718) 20 052
Total comprehensive income 136 125 233 108
Items in the statement above are disclosed net of tax. See note 10.
Allocation
Shareholders 136 125 233 108
Consolidated balance sheet
NOK 1000 Note 31.12.2021 31.12.2020
Assets
Non-current assets
Goodwill 13 36 933 36 933
Intangible assets 14 44 917 52 760
Property, plant and equipment 12 212 940 237 960
Right of use assets 12 239 503 256 892
Deferred tax assets 22 73 989 72 384
Other receivables 15 10 316 4 598
Total non-current assets 618 598 661 528
Current assets
Inventory 16 880 297 544 977
Accounts receivable 15, 27 864 598 834 493
Contract assets 15 400 586 386 660
Other receivables 15, 27 117 302 74 589
Cash and cash equivalents 17 428 035 152 572
Total current assets 2 690 818 1 993 292
Total assets 3 309 417 2 654 820
The notes on pages 19 to 59 are an integral part of the consolidated nancial statement.
16ANNUAL REPORT 2021
Consolidated balance sheet (continued)
Equity and liabilities
Equity
Equity attributable to owner of the parent
Share capital 18 19 701 17 910
Share premium reserve 18 792 623 456 058
Equity unrecognised in the prot and loss (16 308) 7 125
Retained earnings 432 030 404 560
Total equity 1 228 046 885 654
Liabilities
Non-current liabilities
Deferred tax liabilities 22 4 223 4 728
Interest bearing debt 21 206 230 267 894
Pension commitments 23 5 557 5 666
Other liabilities 4 227 3 088
Total non-current liabilities 220 237 281 376
Current liabilities
Accounts payable 20, 27 917 779 702 368
Other payables 20, 27 131 057 128 093
Tax payable 19 050 14 605
Interest bearing debt 21 793 247 642 723
Total current liabilities 1 861 133 1 487 789
Total liabilities 2 081 370 1 769 166
Total liabilities and equity 3 309 417 2 654 820
The notes on pages 19 to 59 are an integral part of the consolidated nancial statement.
Oslo, 22 March 2022
Tuomo Lähdesmäki
Chairman
Gro Brækken
Deputy Chairman
Christian Jebsen
Board Member
Espen Gundersen
Board Member
Petra Grandinson
Board Member
Maalfrid Brath
Board Member
Bjørn Gottschlich
Employee Elected Board Member
Tanja Rørheim
Employee Elected Board Member
Jarle Larsen
Employee Elected Board Member
Lars Peter Nilsson
CEO of Kitron ASA
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
17ANNUAL REPORT 2021
Consolidated statement of changes in equity
Equity attributable to owner of the parent
NOK 1000
Share
capital
Share
premium
reserve
Actuarial
gains and
losses
Exchange
gains/losses
unrecognised
in the prot
and loss
Other equity
unrecognised
in the prot
and loss
Retained
earnings
Total
Equity at 1 January 2020 17 910 456 058 (9 861) (4 402) (1 549) 281 057 739 213
Net prot 213 056 213 056
Paid dividends (89 552) (89 552)
Employee share schemes 2 885 2 885
Other comprehensive income (179) 20 231 - 20 052
Equity at 31 December 2020 17 910 456 058 (10 040) 15 829 1 336 404 560 885 654
Equity at 1 January 2021 17 910 456 058 (10 040) 15 829 1 336 404 560 885 654
Net prot 152 843 152 843
Paid dividends (125 373) (125 373)
Issue of ordinary shares 1 791 336 565 338 356
Employee share schemes 5 243 5 243
Other adjustments (11 958) (11 958)
Other comprehensive income (299) (16 419) - (16 718)
Equity at 31 December 2021 19 701 792 623 (10 339) (590) (5 379) 432 030 1 228 046
The notes on pages 19 to 59 are an integral part of the consolidated nancial statement.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
18ANNUAL REPORT 2021
Consolidated statement of cash ow
NOK 1000 Note 2021 2020
Cash ows from operating activities
Cash ow from operations 25 183 357 308 448
Interest received 3 786 4 787
Interest paid (20 011) (28 639)
Income taxes paid (40 818) (47 591)
Net cash (outow) from operating activities 126 314 237 005
Cash ows from investing activities
Paid for tangible xed assets 12 (39 309) (29 617)
Paid for intangible assets 14 (6 665) (29 346)
Net cash (outow) from investing activities (45 974) (58 963)
Cash ows from nancing activities
Proceeds from issuing ordinary shares 338 775 -
Proceeds from new loans 100 564 80 000
Repayment of loans (59 399) (102 790)
Repayment lease debt (29 185) (29 653)
Dividends paid (125 374) (89 552)
Net cash (outow) from nancing activities 225 381 (141 995)
Change in cash, cash equivalents and bank overdraft 305 721 36 047
Cash,cash equivalents and bank overdraft at 1 January 17 (81 039) (119 461)
Exchange gains (losses) on cash and cash equivalents (2 269) 2 375
Cash, cash equivalents and bank overdraft at 31 December 222 414 (81 039)
The notes on pages 19 to 59 are an integral part of the consolidated nancial statement.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
19ANNUAL REPORT 2021
Note 1 - General Information
Kitron ASA and its subsidiaries (the group) comprise one of Scandinavia’s leading enterprises in the
development, industrialisation and manufacturing of electronics for the Connectivity, Electrication, Industry,
Medical devices and Defence & Aerospace sectors. The group has operations in Norway, Sweden, Lithuania,
Germany, Poland, China and the US. Kitron ASA has its head oce at Billingstad outside Oslo in Norway
and is listed on the Oslo Stock Exchange. The consolidated accounts were considered and approved by the
company’s board of directors on 22 March 2022.
Note 2 - Summary of the most signicant accounting principles
The most signicant accounting principles applied in the preparation of the consolidated nancial statements
are detailed below. These principles have been applied uniformly in all the periods unless otherwise stated.
Basis for preparations
The consolidated nancial statements of Kitron ASA have been prepared in accordance with International
Financial Reporting Standards (IFRS) and interpretations by the IFRS Interpretations Committee (IFRS IC)
applicable to companies reporting under IFRS as approved by the European Union (EU). The consolidated
nancial statements have been prepared under the historical cost convention except for nancial assets and
liabilities (including derivative instruments) measured at fair value. The preparation of nancial statements
in conformity with IFRS requires the use of certain critical accounting estimates. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are signicant to
the consolidated nancial statements are disclosed in note 4. The consolidated nancial statements are
prepared based on a going concern assumption.
Changes in accounting policy and disclosures
a) New and amended standards adopted by the group
The group has applied the following standards and amendments for the rst time for their annual reporting
period commencing 1 January 2021:
• Covid-19-related Rent Concessions – Amendments to IFRS 16
• Interest Rate Benchmark Reform Phase 2 – Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
b) New standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 31
December 2021 reporting periods and have not been early adopted by the group. These standards are not
expected to have a material impact on the entity in the current reporting period.
Consolidation principles
Subsidiaries
Subsidiaries are all entities (including structured entities) over which the group has control. The group
controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the group. They are deconsolidated from the
date that control ceases.
The group applies the acquisition method to account for business combinations. The consideration transferred
for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the
former owners of the acquiree and the equity interests issued by the group. The consideration transferred
includes the fair value of any asset or liability resulting from a contingent consideration arrangement.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
20ANNUAL REPORT 2021
KITRON IN BRIEF
Identiable assets acquired and liabilities and contingent liabilities assumed in a business combination
are measured initially at their fair values at the acquisition date. The group recognises any noncontrolling
interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the noncontrolling
interest’s proportionate share of the recognised amounts of acquiree’s identiable net assets.
Acquisition-related costs are expensed as incurred
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s
previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains
or losses arising from such re-measurement are recognised in prot or loss.
Any contingent consideration to be transferred by the group is recognised at fair value at the acquisition date.
Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability
is recognised in accordance with IFRS 9 either in prot or loss or as a change to other comprehensive income.
Contingent consideration that is classied as equity is not re-measured, and its subsequent settlement
is accounted for within equity. Intercompany transactions, balances and unrealised gains on transactions
between group companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts
reported by subsidiaries have been adjusted to conform with the group’s accounting policies.
Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity
transactions – that is, as transactions with the owners in their capacity as owners. The difference between
fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the
subsidiary is recorded in equity. Gains or losses on disposals to noncontrolling interests are also recorded
in equity.
Disposal of subsidiaries
When the group ceases to have control, any retained interest in the entity is remeasured to its fair value
at the date when control is lost, with the change in carrying amount recognised in prot or loss. The fair
value is the initial carrying amount for the purposes of subsequently accounting for the retained interest
as an associate, joint venture or nancial asset. In addition, any amounts previously recognised in other
comprehensive income in respect of that entity are accounted for as if the group had directly disposed of
the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive
income are reclassied to prot or loss.
Associated companies
The group has no joint ventures or associated companies.
Segment reporting
The Corporate management has evaluated that the group operates in only one segment; Electronics
Manufacturing Services (EMS). There is therefore no separate segment reporting in Kitron.
Translation of foreign currencies
Functional and presentation currencies
The accounts of the individual units are compiled in the principal currency used in the economic area in
which the unit operates (the functional currency). The consolidated accounts are presented in NOK, which
is both the functional and the presentation currency for the parent company.
Transaction and balance sheet items
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing
at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and
losses resulting from the settlement of such transactions and from the translation at year-end exchange
rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income
statement, except when deferred in other comprehensive income as qualifying cash ow hedges. Foreign
exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the
income statement within ‘Financial income and expenses’. All other foreign exchange gains and losses are
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
21ANNUAL REPORT 2021
KITRON IN BRIEFCONSOLIDATED ANNUAL ACCOUNTS AND NOTES
presented in the income statement within ‘Other gains/ (losses)’.
Group companies
The income statements and balance sheets for group units (none of which are affected by hyperination) in
functional currencies which differ from the presentation currency are translated as follows:
• The balance sheet is translated at the closing exchange rate on the balance sheet date
• The income statement is translated at the average exchange rate
• Translation differences are recognised in OCI and specied separately
• Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and translated at the closing rate
Property, plant and equipment
Tangible xed assets primarily embrace buildings and land, machinery, equipment, and xtures and ttings.
Tangible xed assets are stated at historical cost less accumulated depreciation and impairments. They
are recognised in the balance sheet and depreciated on a straight-line basis to their residual value over their
expected useful life, which is:
• Buildings: 20-33 years
• Machinery and operating equipment: 3-10 years
Land is not depreciated. The useful life of xed assets and their residual value are reassessed on every
balance sheet date and amended if necessary. When the carrying amount of a xed asset is higher than the
estimated recoverable amount, the value is written down to the recoverable amount.
On-going maintenance of xed assets is charged as an operating cost, while upgrading or improvements
are added to the historical cost of the asset and depreciated accordingly. Gain and loss on disposals is
recognised in the income statement as the difference between the sales price and the carrying amount.
Fixed assets subject to depreciation are tested for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher
of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identiable cash inows which are
largely independent of the cash inows from other assets or groups of assets (cash-generating units). At
each reporting date, an assessment is made of the opportunity for reversing earlier impairment charges on
xed assets.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are
recognised within ‘Other gains/(losses)’ in the income statement.
Right-of-use assets
Right-of-use assets consist of buildings, machinery and equipment accounted for in accordance with IFRS
16. See more info under “The group’s leasing activities and how they are accounted for” later in this note and
note 26 “Leases”.
Intangible assets
Goodwill
Goodwill is the difference between the sum of the consideration paid, non-controlling interests recognised
and previously held interests at fair value for the acquisition of a business and the fair value of the acquiree’s
net identiable assets at the acquisition date. Goodwill is tested annually for impairment and recognised
22ANNUAL REPORT 2021
in the balance sheet at its acquisition cost less impairment charges. Impairment losses on goodwill are
not reversed. The goodwill is allocated to relevant cash generating units at the time of the acquisition. The
allocation is made to those cash-generating units or groups of such units which are expected to benet from
the acquisition. The group allocates goodwill to cash generating units in each country in which it operates.
Computer software
Costs associated with maintaining computer software programmes are recognised as an expense as
incurred. Development costs that are directly attributable to the design and testing of identiable and unique
software products controlled by the group are recognised as intangible assets when the following criteria
are met:
• it is technically feasible to complete the software product so that it will be available for use;
• management intends to complete the software product and use it;
• there is an ability to use the software product;
• it can be demonstrated how the software product will generate probable future economic benets;
• adequate technical, nancial and other resources to complete the development and to use the software
product are available; and
• the expenditure attributable to the software product during its development can be reliably measured.
Computer software is depreciated on a straight-line basis to their residual value over their expected useful
life, which is 7 years.
Financial assets
The Group´s nancial assets are: accounts receivable, other receivables at amortized cost and cash and
cash equivalents. At initial recognition, the group measures a nancial asset at its fair value plus transaction
costs that are directly attributable to the acquisition of the nancial asset.
The Group measures nancial assets at amortised cost if both of the following conditions are met:
• the asset is held within a business model whose objective is to collect the contractual cash ows, and
• the contractual terms give rise to cash ows that are solely payments of principal and interest.
Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR)
method and are subject to impairment. Gains and losses are recognised in prot or loss when the asset is
derecognised, modied or impaired.
Recognition and derecognition
Regular way purchases and sales of nancial assets are recognised on trade-date, the date on which the
group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive
cash ows from the nancial assets have expired or have been transferred and the group has transferred
substantially all the risks and rewards of ownership.
Inventory
Inventory comprises purchased raw materials. It is stated at the lower of average acquisition cost and net
realisable value. Cost is determined using the weighted average method.
Accounts receivable and contract assets
Accounts receivable are recognised initially at fair value and subsequently measured at amortised cost using
the effective interest method, less loss allowance. Accounts receivable are amounts due from customers for
goods sold or services performed in the ordinary course of business. They are generally due for settlement
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
23ANNUAL REPORT 2021
within 30- 120 days and therefore are all classied as current. The group holds the accounts receivable with
the objective to collect the contractual cash ows and therefore measures them subsequently at amortised
cost using the effective interest method.
To measure the expected credit losses, accounts receivable and contract assets have been grouped based
on shared credit risk characteristics and the days past due. The contract assets relate to unbilled work in
progress and have substantially the same risk characteristics as the accounts receivable for the same types
of contracts. The group has therefore concluded that the expected loss rates for accounts receivable are a
reasonable approximation of the loss rates for the contract assets.
Accounts receivable and contract assets are written off when there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor
to engage in a repayment plan with the group, and a failure to make contractual payments for a period of
greater than 120 days past due.
Impairment losses on accounts receivable and contract assets are presented as net impairment losses
within operating prot. Subsequent recoveries of amounts previously written off are credited against the
same line item.
Cash and cash equivalents
Cash and cash equivalents include cash and deposits in bank accounts.
Share capital
The share capital comprises the number of shares multiplied by their nominal value, and are classied
as equity. Expenses which can be attributed directly to the issue of new shares or options (less tax) are
recognised in equity as a reduction in the proceeds received.
Financial liabilities
Financial liabilities are classied, at initial recognition, as liabilities at amortised cost and include accounts
payable and other payables and loans.
Accounts payable and other payables
These amounts represent liabilities for goods and services provided to the group prior to the end of nancial
year which are unpaid. The amounts are unsecured and are usually paid within 30-120 days of recognition.
Accounts payable and other payables are presented as current liabilities unless payment is not due within 12
months after the reporting period. They are recognised initially at their fair value and subsequently measured
at amortised cost using the effective interest method.
Loans
Loans are initially recognised at fair value, net of transaction costs incurred. Loans are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the
redemption amount is recognised in prot or loss over the period of the loans using the effective interest
method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan
to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is
deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all
of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised
over the period of the facility to which it relates.
Loans are removed from the balance sheet when the obligation specied in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a nancial liability that has been
extinguished or transferred to another party and the consideration paid, including any noncash assets
transferred or liabilities assumed, is recognised in prot or loss as other income or nance costs.
Loans are classied as current liabilities unless the group has an unconditional right to defer settlement of
the liability for at least 12 months after the reporting period.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
24ANNUAL REPORT 2021
Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement,
except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted
at the balance sheet date in the countries where the company and its subsidiaries operate and generate
taxable income. Management periodically evaluates positions taken in tax returns with respect to situations
in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on
the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the consolidated nancial statements.
However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill.
Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that, at the time of the transaction, affects neither accounting
nor taxable prot or loss. Deferred tax is determined using tax rates and laws which have been substantially
enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is
realised, or the deferred income tax liability settled. Deferred tax assets are recognised to the extent that it is
probable that future taxable prot will be available, and that the temporary differences can be deducted from
this prot. Deferred tax is calculated on temporary differences arising on investments in subsidiaries, except
where the timing of the reversal of the temporary differences is controlled by the group and it is probable
that they will not be reversed in the foreseeable future.
Pension commitments, bonus schemes and other compensation for employees
Pension commitments
Group companies have various pension schemes. These schemes are generally funded through payments
to insurance companies or pension funds based on periodic actuarial calculations. The group has both
dened contribution and dened benet plans. From 2016 the group has dened benet plan for former
CEO only.
A dened contribution plan is one under which the group pays xed contributions to a separate legal entity.
The group has no legal or constructive obligations to pay further contributions if the fund does not hold
sucient assets to pay all employees the benets relating to employee service in the current and prior
periods.
A dened benet plan is one that is not a dened contribution plan, and typically denes an amount of pension
benet an employee will receive on retirement. That benet is normally dependent on one or more factors
such as age, years of service and pay. The liability recognised in the balance sheet in respect of dened
benet pension plans is the present value of the dened benet obligation at the balance sheet date less the
fair value of plan assets. An independent actuary calculates the pension commitment annually. The present
value of the dened benet obligations is determined by discounting the estimated future cash outows
using interest rates of high quality corporate bonds. Estimated payroll tax on the net pension commitment
calculated by an actuary is added to the carrying amount of the obligation. Changes in pension plan benets
are recognised immediately in the income statement. Actuarial gains and losses are recognised in other
comprehensive income.
For dened contribution plans, the group pays contribution to publiclyor privately administered pension
insurance plans on an obligatory, contractual or voluntary basis. The group has no further payment
obligations once the contributions have been paid. The contributions are recognised as a payroll expense
when they fall due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a
reduction in the future payments is available.
The pension plans in Norway comply with the Norwegian mandatory service pension act.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
25ANNUAL REPORT 2021
Share-based payments
The group operates an equity settled share-based compensation plan under which the entity receives services
from employees as consideration from equity instruments (options) for the group. The compensation plan
comprises senior management only. The fair value of the employee services received in exchange for the
grant of the options is recognised as an expense. When the options are exercised, the company issues new
shares. The proceeds received net of any directly attributable transaction costs are credited to share capital
(nominal value). The social security contribution payable in connection with the grant of the share options is
considered as an integral part of the grant itself, and the charge will be settled as a cash-settled transaction.
Further details around the arrangement are described in note 19.
Bonus schemes
Certain senior executives have bonus agreements related to the attainment of specied targets for the
business (budgets and activities). Obligations (provisions) and costs (pay) are recognised for bonuses in
accordance with the company’s contractual obligations.
Severance pay
Severance pay is given when the contract of employment is terminated by the group before the normal
age of retirement or when an employee voluntarily agrees to leave in return for such a payment. The group
recognises severance pay in the accounts when it is demonstrably obliged either to terminate the contract
of employment for existing employees in accordance with a formal, detailed plan which the group cannot
rescind, or to make a payment as a consequence of an offer made to encourage voluntary resignations.
Severance pay which falls due more than 12 months after the balance sheet date is discounted to present
value.
Provisions
The group makes provisions when a legal or constructive obligation exists as a result of past events, it is
more likely than not that a transfer of nancial resources will be required to settle the obligation, and the
amount of the obligation can be estimated with a sucient degree of reliability. Provisions relate primarily to
restructuring costs. Obligations falling due more than 12 months after the balance sheet date are discounted
to present value.
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that
the grant will be received, and the group will comply with all attached conditions. Government grants relating
to costs are deferred and recognised in the income statement over the period necessary to match them
with the costs that they are intended to compensate. Government grants relating to property, plant and
equipment are reducing cost price of the related assets.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as
revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties.
Sales of goods
The group manufactures and sells electronics that are embedded in the customer’s own products as well as
box-build electronic products in the EMS market. The products are manufactured based on the customer’s
specications and quality standards, and the group does not own the intellectual property of the products.
Sales are recognized based on estimated percentage of completion for the relevant contracts going forward
as control is transferred to the customer over time. This is determined based on the actual cost relative to
the total expected cost. The purchase price agreed between the parties is xed and specied for each good
or service provided. The customer is obligated to pay a minimum fee based on the order status if the order
is cancelled.
Some contracts include multiple deliverables, such as test development, engineering change orders and
production. These are accounted for as separate performance obligations. In this case, the transaction price
will be allocated to each performance obligation based on the standalone selling prices. Where these are
not directly observable, they are estimated based on expected cost-plus margin. In xed-price contracts, the
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
26ANNUAL REPORT 2021
customer pays the xed unit amount based on a payment schedule. If the goods/services rendered by the
group exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a
contract liability is recognized
Sales of services
Sales of services embrace development assignments and services related to industrialisation. Service
deliveries are partly project based and partly hourly based. Sales of project-based services are recognised in
the period in which the services are rendered, based on the degree of completion of the relevant project. The
degree of completion is determined by measuring the services provided as a proportion of the total services
to be rendered. Hourly-based services are recognised in the period when the service is rendered.
Interest income
Interest on bank deposits is recognised in the period when it is earned.
The group’s leasing activities and how they are accounted for
The group leases various properties, equipment and cars. Rental contracts are typically made for xed
periods of 1 to 12 years but may have extension options as described below. Lease terms are negotiated on
an individual basis and contain a wide range of different terms and conditions. The lease agreements do not
impose any covenants, but leased assets may not be used as security for borrowing purposes.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased
asset is available for use by the group. Each lease payment is allocated between the liability and nance
cost. The nance cost is charged to prot or loss over the lease period so as to produce a constant periodic
rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated
over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
include the net present value of the following lease payments:
• xed payments (including in-substance xed payments), less any lease incentives receivable
• variable lease payment that are based on an index or a rate as at the commencement date
• amounts expected to be payable by the lessee under residual value guarantees
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reects the lessee exercising that
option.
Lease payments to be made under reasonably certain extension options are also included in the measurement
of the liability. The lease payments are discounted using the interest rate implicit in the lease, if that rate can
be determined, or the group’s incremental borrowing rate.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives received
• any initial direct costs, and
• restoration costs.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-
line basis as an expense in prot or loss. Short-term leases are leases with a lease term of 12 months or
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
27ANNUAL REPORT 2021
less. Low-value assets comprise IT-equipment and small items of oce furniture.
Kitron does not have lease agreements with variable lease payments of any signicance.
Extension and termination options are included in a number of property leases across the group. These
terms are used to maximise operational exibility in terms of managing contracts. The majority of extension
and termination options held are exercisable only by the group and not by the respective lessor.
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods
after termination options) are only included in the lease term if the lease is reasonably certain to be extended
(or not terminated).
Dividend payments
Possible dividend payments to the company’s shareholders are recognised as a liability in the group’s
nancial statements in the period when the dividend is approved by the general meeting.
Note 3 - Financial risk
The company is exposed through its business to a number of nancial risks. The corporate routines for risk
management focus on the unpredictability of the nancial markets, and endeavour to minimise potential
negative effects arising from the company’s nancial dispositions.
Market risk
Currency risk: the group is exposed to changes in foreign exchange rates because a signicant share of the
group’s goods and services are sold in such currencies. At the same time raw material are bought in foreign
currency and the operating costs in foreign group entities are in local currency. To reduce the currency risk
the company’s standard contracts include currency clauses which allow the company to adjust the price
when the actual exchange rate differs signicantly from the agreed base rate. The group has not established
other signicant currency hedge arrangements over and above its standard contracts with customers. The
most signicant foreign currencies are SEK, EUR and USD. The group has signicant investments in foreign
operations whose net assets are exposed to foreign currency translation risk in SEK, EUR, USD, PLN and
RMB.
At 31 December, if the (NOK) currency had weakened/strengthened by 1 per cent against the USD with all
variables held constant, post–tax prot for the year would have been NOK 1.0 million (2020: NOK 0.6 million)
higher/ lower, mainly as a result of foreign exchange gains/losses on translation of US dollar denominated
bank deposits, trade receivables and debt.
At 31 December, if the (NOK) currency had weakened/strengthened by 1 per cent against the EUR with all
variables held constant, post–tax prot for the year would have been NOK 0,3 million (2020: NOK 0.9 million)
higher/ lower, mainly as a result of foreign exchange gains/losses on translation of EUR denominated bank
deposits, trade receivables and debt.
At 31 December if the (NOK) Norwegian currency had weakened/straightened by 1 percent against the
SEK with all variables held constant, post-tax for the year would have been NOK 0.6 million (2020: NOK 0.3
million) higher/lower, mainly as a result of foreign exchange gains/losses on trasnlation of SEK denominated
bank deposit, trade receivables and dept.
Price risk: the company is exposed to price risk both because raw materials follow international market
prices for electronic and mechanical components and because the company’s goods and services are
subject to price pressures. Routines have been established for procurement by the company’s own sourcing
organisation, which negotiates group contracts. The sourcing function allows Kitron to achieve improved
material prices.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
28ANNUAL REPORT 2021
Credit risk
Credit risk arises from cash and cash equivalents, deposits with bank, accounts receivables and contract
assets. The major part of accounts receivable are credit insured. Kitron accordingly bears credit risk only
for accounts receivable which are not insured. The company has routines to ensure that uninsured sales on
credit are made only to creditworthy customers.
The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as
the trade receivables for the same types of contracts. The group has therefore concluded that the expected
loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets.
Liquidity risk
Cash ow forecasting is performed in the operating entities of the group and aggregated by group nance.
Group nance monitors rolling forecasts of the group’s liquidity requirements to ensure it has sucient cash
to meet operational needs while maintaining sucient headroom on its undrawn committed borrowing
facilities at all times so that the group does not breach borrowing limits or covenants on any of its borrowing
facilities.
Kitron’s nancing is primarily short-term and based on factoring nance for accounts receivable. This
means that uctuations in turnover affect the company’s liquidity. In addition, drawing facilities have been
established in banks which counteract the liquidity uctuations related to turnover.
The table below shows the group’s nancial loans including interest into relevant maturity groupings based
on the remaining period at the balance sheet date to contractual maturity date.
Periods to maturity of nancial liabilities incl. interest:
NOK 1000
Less than
one year
Between one
and two years
Between two
and ve years
More than
ve years
At 31 December 2021
Bank overdraft 210 146 - - -
Leasing 48 406 70 227 65 633 21 128
Factoring debt 367 901
Other nancial loans 187 619 38 398 18 540 -
Trade and other payables 917 779 - - -
Total 1 731 850 108 626 84 173 21 128
At 31 December 2020
Bank overdraft 238 178 - - -
Leasing 57 607 49 893 103 592 24 812
Factoring debt 275 336 - - -
Other nancial loans 84 038 43 326 55 107
Trade and other payables 702 368 - - -
Total 1 358 527 93 219 158 699 24 812
Interest rate risk
The group’s interest rate risk arises mainly from short-term borrowings (factoring debt and bank overdraft)
and long-term bank debt. The group’s borrowings are mainly with variable rates which expose the group to
cash ow interest rate risk.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
29ANNUAL REPORT 2021
Interest on the group’s interest-bearing debt is charged at the relevant market rate prevailing at any given
time (mainly one month interbank offered rate – Nibor, Stibor, Libor or Vilibor as the case may be – plus
the agreed interest margin). There will not occur any gain/loss on the balance sheet amounts in case
interest rates are increased or lowered. At 31 December 2021, if interest rate on NOK borrowings had been
1 percentage points higher/lower with all other variables held constant, post-tax prot for the year would
have been NOK 5.4 million (2020: NOK 5.1 million) lower/higher, mainly as a result of higher/lower interest
expense on oating rate borrowings. At 31 December 2021, if interest rate on borrowings in foreign currency
had been 1 percentage points higher/lower with all other variables held constant, post-tax prot for the year
would have been NOK 4.5 million (2020: NOK 4.0 million) lower/higher. External nancing for the group’s
operational companies takes place in the functional currency. No interest rate instruments have been
established in the group. The group does not have signicant interest-bearing assets, so that its income and
cash ow from operational activities are not signicantly exposed to changes in the market interest rate.
Capital risk management
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 benets 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.
The gearing ratios at 31 December 2021 and 2020 were as follows:
NOK 1000 2021 2020
Total borrowings (note 21) 999 477 910 617
Cash and cash equivalents (note 17) (428 035) (152 572)
Net debt 571 442 758 045
Total equity 1 228 046 885 654
Total capital 1 799 488 1 643 699
Gearing ratio 32 % 46 %
Note 4 - Important accounting estimates and discretionary assessments
Estimates and discretionary assessments are based on historical experience and other factors, including
expectations of future events that are considered likely under present conditions. The group prepares
estimates and makes assumptions about the future.
Accounting estimates derived from these will by denition seldom accord fully with the outcome. Estimates
and assumptions which represent a substantial risk for signicant changes in the carrying amount of assets
and liabilities during the coming scal year are discussed below.
Deferred tax assets
The group performs annual tests for impairment of deferred tax assets. Part of the basis for recognising
deferred tax assets are based on applying the loss carried forward against future taxable income in the
group. This requires the use of estimates for calculating future taxable income.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
30ANNUAL REPORT 2021
Note 5 - Geographical breakdown of revenues and assets
The revenues come from sales of goods and services in the elds of development, industrialization and
production to customers involved in Connectivity, Defence/Aerospace, Electrication, Industry and Medical
devices.
Revenues by line of business
The table shows the EMS turnover by industry:
NOK 1000 2021 2020
Connectivity 458 932 330 906
Defence & Aerospace 763 093 969 583
Electrication 983 214 938 844
Industry 872 670 717 965
Medical devices 633 464 1 006 578
Total sales 3 711 373 3 963 876
Geographical breakdown revenues
The geographical distribution is based on countries where the different customers are located
NOK 1000 2021 2020
Norway 599 767 570 835
Sweden 1 740 232 1 728 743
Rest of Europe 709 280 806 980
USA 612 591 764 911
Other 49 503 92 407
Total sales 3 711 373 3 963 876
The largest customer counts for 9.9 % (14.7 %) of sales, the next counts for 8.8 % (11.3 %), the third counts
for 5.5 % (9.2 %) and the others are below 5.5 % (4.8 %) each.
Geographical breakdown of assets
Norway Sweden Lithuania Poland
NOK 1000 2021 2020 2021 2020 2021 2020 2021 2020
Assets 110 636 94 822 61 934 70 760 101 737 131 603 120 589 136 313
China Germany USA
NOK 1000 2021 2020 2021 2020 2021 2020
Assets 45 499 47 840 287 570 54 148 62 767
Included in assets under geographical segment is property, plant and equipment and intangible assets
excluding deferred tax asset and goodwill.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
31ANNUAL REPORT 2021
Note 6 - Revenues
Revenues consist of
NOK 1000 2021 2020
Revenues from contracts with customers 3 711 373 3 962 408
Other income *) - 1 468
Total revenues 3 711 373 3 963 876
Timing of revenue recognition
NOK 1000 2021 2020
Revenues from contracts with customers, over time 3 711 373 3 962 408
* Other income is related to indemnication from insurance.
Note - 7 Other gains / (losses)
NOK 1000 2021 2020
Currency gains 53 161 73 344
Currency losses (56 765) (80 315)
Other gains/(losses) (3 604) (6 970)
Note 8 - Employee benets
NOK 1000 2021 2020
Payroll 574 715 563 420
Payroll tax 82 101 62 398
Net pension costs dened benet plans (note 22) 81 101
Pension costs dened contribution plans 30 701 24 020
Other remuneration 31 546 21 499
Total 719 144 671 438
Average number of man-years (including hired-ins) 1 786 1 764
Average number of employees 1 759 1 728
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
32ANNUAL REPORT 2021
Note 9 - Financial income and expenses
NOK 1000 2021 2020
Interest income 3 786 4 787
Other nancial income 6 1 187
Agio related to borrowings, cash and cash equivalents 86 4 921
Finance income 3 878 10 896
Interest expenses (25 573) (28 639)
Other nancial expenses (2 449) (7 159)
Disagio related to borrowings, cash and cash equivalents (12 503) (13 585)
Finance expenses (40 525) (49 383)
Net nancial items (36 648) (38 487)
Note 10 - Income tax expense
NOK 1000 2021 2020
Tax payable 48 148 59 409
Deferred tax (Note 22) 3 175 1 622
Income tax expense 51 323 61 031
The tax on the group’s prot before tax differs from the theoretical amount that would arise using the
domestic tax rate applicable to prots of the consolidated entities as follows:
NOK 1000 2021 2020
Ordinary prot before tax 204 165 274 087
Tax calculated at the domestic rate (22%) 44 916 60 300
Expenses not deducible for tax purposes (3 179) 903
Tax loss for which no deferred income tax asset was recognised (265) (83)
Other adjustments 6 911 -
Effect on different tax rates in countries in which the group operates 2 940 (89)
Tax cost 51 323 61 031
The income tax expense is calculated using the domestic tax rate.
The tax rate is 22.0 % in Norway, 20.6 % in Sweden, 15.0 % in Lithuania, 25.0 % in China, 16.5 % in Hong Kong,
30.9 % in USA, 19.0 % in Poland and 15.0 % in Germany.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
33ANNUAL REPORT 2021
The tax (charge)/credit relating to components of other comprehensive income is as follows:
2021 2020
NOK 1000
Before
tax
Tax (charge)
credit
After
tax
Before
tax
Tax (charge)
credit
After
tax
Actuarial gain / (losses) pensions (383) 84 -299 (230) 50 (179)
Exchange differences on translation of
foreign operations
4 251
(935)
3 316
(3 665)
806
(2 859)
Currency translation differences (13 905) - (13 905) 23 090 - 23 090
Gain/(loss) forward contracts (7 474) 1 644 (5 831) - - -
Other comprehensive income (17 511) 793 (16 718) 19 195 856 20 052
Current tax - -
Deferred tax (793) (856)
Note 11 - Earnings per share
Basic earnings per share is calculated by dividing the prot attributable to equity holders of the company
by weighted average number of ordinary shares in issue during the year. The company has no own shares.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares. The company has one category,
which is share options, of dilutive potential ordinary shares. A calculation is done to determine the number
of shares that could have been acquired at fair value based on the monetary value of the subscription rights
attached to share options. The number of shares calculated is compared with the number of shares that
would have been issued assuming the exercise of the share options. (note 19).
NOK 1000 2021 2020
Prot attributable to equity holders of the company 152 843 213 056
Prot used to determine basic and diluted earnings per share 152 843 213 056
Weighted average number of ordinary shares in issue (thousands) 179 202 179 104
Adjusted for share options (thousands) 2 177 1 385
Weighted average number of ordinary shares for diluted earnings per share
(thousands)
181 391 180 489
Basic earnings per share 0.85 1.19
Diluted earnings per share 0.84 1.18
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
34ANNUAL REPORT 2021
Note 12 - Property, plant and equipment
NOK 1000
Machinery and
equipment
Buildings
and land
Right-of-use
assets
Total
At 1 January 2020
Acquisition cost 1 145 669 204 869 146 816 1 497 353
Reclassication 1) (137 769) - 137 769 -
Accumulated depreciation/impairment (877 319) (97 302) (15 641) (990 262)
Accounting carrying amount 130 581 107 566 268 944 507 091
Fiscal 2020
Opening balance 130 581 107 566 268 944 507 091
Currency translation adjustment 9 238 8 904 - 18 142
Additions 55 116 1 607 8 488 65 211
Depreciation (63 568) (11 484) (20 540) (95 592)
Closing balance 131 367 106 593 256 892 494 852
At 31 December 2020
Acquisition cost 1 072 254 215 380 293 073 1 580 706
Accumulated depreciation/impairment (940 887) (108 787) (36 181) (1 085 854)
Accounting carrying amount 131 367 106 593 256 892 494 852
Fiscal 2021
Opening balance 131 367 106 593 256 892 494 852
Currency translation adjustment (18 709) (15 968) 8 858 (25 819)
Additions 34 728 4 581 30 642 69 951
Reclassication 2) 13 230 7 629 (13 230) 7 629
Depreciation (39 662) (10 849) (43 659) (94 170)
Closing balance 120 955 91 986 239 503 452 443
At 31 December 2021
Acquisition cost 1 101 503 211 622 319 342 1 632 468
Accumulated depreciation/impairment (980 549) (119 636) (79 840) (1 180 024)
Accounting carrying amount 120 955 91 986 239 503 452 443
1) For 2020 the accumulated value and for 2021 the change in value of leased assets is reclassied from
“Machinery and equipment” to “Right-of-use assets”.
2) For 2021 the value of NOK 7629 thousand for “Assets under construction” is reclassied from Intangible
asset to Tangible assets/Building and land.
Machinery and equipment, buildings and land were provided at 31 December as security for NOK 108.9
million and NOK 38.1 million (2020: NOK 116.5 million and NOK 42.3 million), see note 21.
Building and land installations are depreciated over 7 years, machinery is depreciated over 5-7 years, other
equipment and vehicles are depreciated over 3-5 years while general-purpose IT hardware and software is
depreciated over 3 years.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
35ANNUAL REPORT 2021
Note 13 - Goodwill
NOK 1000 Goodwill
At 1 January 2020
Acquisition cost 40 765
Accumulated impairment charge (3 832)
Accounting carrying amount 36 933
Fiscal 2020
Opening balance 36 933
Closing balance 36 933
At 31 December 2020
Acquisition cost 40 765
Accumulated impairment charge (3 832)
Accounting carrying amount 36 933
Fiscal 2021
Opening balance 36 933
Closing balance 36 933
At 31 December 2021
Acquisition cost 40 765
Accumulated impairment charge (3 832)
Accounting carrying amount 36 933
The company’s cash-generating units are identied by country
Allocation of carrying amount of goodwill by business area and by country:
NOK 1000 2021 2020
Norway 715 715
Sweden 3 555 3 555
Lithuania 20 062 20 062
Germany 2 454 2 454
USA 10 147 10 147
Total 36 933 36 933
The recoverable amount for a cash-generating unit is based on a calculation of value in use.
The cash ow assumption is based on nancial budgets approved by the company’s board. These
calculations are based on growth assumptions which correspond with industry expectations of growth in
the EMS market in the coming years and no signicant changes in margins. The calculated values are also
sustainable against write offs due to a fair change in assumptions. The calculations are based on cash
ows for the next three years and a residual value for future earnings. The discount rate is 8 per cent.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
36ANNUAL REPORT 2021
Note 14 - Intangible assets
NOK 1000 System Software Other intangible assets Total
At 1 January 2020
Acquisition cost 82 592 6 309 88 902
Accumulated depreciation (60 315) (629) (60 944)
Accounting carrying amount
22 278 5 680 27 958
Fiscal 2020
Opening balance 22 278 5 680 27 958
Currency translation adjustment 1 411 280 1 691
Additions 29 010 336 29 346
Depreciation (5 851) (385) (6 236)
Closing balance 46 849 5 911 52 760
At 31 December 2020
Acquisition cost 113 014 6 926 119 939
Accumulated depreciation (66 165) (1 014) (67 179)
Accounting carrying amount
46 849 5 911 52 760
Fiscal 2021
Opening balance 46 849 5 911 52 760
Additions 6 623 42 6 665
Reclassication 1) (7 629) - (7 629)
Depreciation (6 089) (789) (6 878)
Closing balance
39 753 5 164 44 917
At 31 December 2021
Acquisition cost 112 007 6 967 118 975
Accumulated depreciation (72 254) (1 803) (74 057)
Accounting carrying amount
39 753 5 164 44 917
1) For 2021 the value of TNOK 7629 for “Assets under construction” is reclassied from Intangible asset to
Tangible asset/Building and land.
Additions to System Software in 2021 refers to ERP system and will be depreciated over 7 years. Other
intangible assets consists of cyber security system for Kitron AB which also are depreciated over 7 years.
Remaining amortisation period for the the cyber security system is 3 years.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
37ANNUAL REPORT 2021
Note 15 - Accounts receivable and other receivables
NOK 1000 2021 2020
Accounts receivable
864 598
834 493
Provision for bad debts
-
-
Accounts receivable - net 864 598
834 493
NOK 1000 2021 2020
Earned non-invoiced income 10 586 5 750
Prepaid costs
57 070
39 758
Other 49 647 29 081
Other receivables 117 302
74 589
Fair value of accounts receivable and other receivables:
NOK 1000 2021 2020
Accounts receivable - net
864 598
834 493
Accounts receivable - net 864 598
834 493
For other current receivables, the carrying amount is virtually identical with the fair value.
As of 31 December 2021 accounts receivables of 86.1 million (2020: NOK 76.3 million) were past due but
not impaired. These relate to a number of independent customers for whom there is no recent history of
default. The ageing analysis of these trade receivables is as follows:
NOK 1000 2021 2020
Not past due
778 532
758 241
Past due 1-30 days
73 582
58 554
Past due 31-60 days
4 219
11 894
Past due 61-90 days
6 446
4 814
Past due > 90 days
1 819
990
Total 864 598
834 493
As of 31 December 2021 no trade receivables were impaired and provided for (2020: NOK 0.0 million).
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
38ANNUAL REPORT 2021
The carrying amount of the group’s trade and other receivables are denominated in the following currencies:
NOK 1000 2021 2020
CNY
35 610
27 496
EUR
298 528
286 264
NOK
277 961
211 163
SEK
112 250
94 845
USD
257 198
279 301
GBP
326
-
PLN
28
10 014
Total 981 900
909 083
Movements on the group provision for impairment of trade receivables are as follows:
NOK 1000 2021 2020
Provision at 1 January
-
-
Receivables written off during the year as uncollectable
-
-
Provision at 31 December -
-
The creation and release of provision for impaired receivables have been included in other operating
expenses in the income statement. Amounts charged to the allowance account are generally written off
when there is no expectation of recovering additional cash.
The maximum exposure to credit risk at the reporting date is the carrying value of the receivables mentioned
above. The group does not hold any collateral as security. However, the group has credit insurance that
reduces the credit risk on account receivables. See note 3.
No impairment charge was recognised in the prot and loss account for the year. (2020: NOK 0.0 million).
Impairment charge was assessed independent of the credit insurance.
No special concentration of accounts receivable exists which poses an abnormal credit risk. Accounts
receivable and other receivables at 31 December 2021 provided security for NOK 455.3 million (2020: 364.4
million), see note 21.
Contract assets
The group has recognised assets related to contract with customers. No increase in loss allowance in 2021
(2020 NOK 0.0 thousands).
NOK 1000 2021 2020
Contract assets
400 586
386 660
Loss allowance
-
-
Contract assets - net 400 586
386 660
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
39ANNUAL REPORT 2021
Note 16 - Inventories
NOK 1000 2021 2020
Raw materials and purchased semi-manufactures
880 297
544 977
Total inventory 880 297
544 977
For obsolete goods in year 2021 there was recognised no change. In 2020 NOK 10.3 million. Impairment
charge recorded in the balance sheet as per 31 December 2021 was NOK 17.1 million, per 31 December
2020 NOK 17.1 million.
Note 17 - Cash, Cash Equivalents and Bank Overdraft
NOK 1000 2021 2020
Cash and cash equivalents
428 035
152 572
Cash, cash equivalents and bank overdraft in the cash ow statement comprise:
NOK 1000 2021 2020
Cash and cash equivalents
428 035
152 572
Overdraft drawn down (Note 21)
(205 621)
(233 611)
Total 222 414
(81 039)
NOK 1000 2021 2020
Bank overdraft facilities 31 December
301 465
320 830
Net drawn on overdraft facilities 31 December
(205 621)
(233 611)
Locked-in bank deposits 31 December
Security for factoring receivables
10 014
11 716
Security for leasing contracts
460
9 851
Total 10 474
21 567
Kitron ASA has established a group account agreement with the company’s principal bank. This embrace
Kitron ASA and Norwegian, Swedish, German, Polish and US subsidiaries.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
40ANNUAL REPORT 2021
Note 18 - Share capital and premium reserve
Share capital and share premium reserve
NOK 1000
Number of shares
(thousands)
Share capital Premium reserve Total
At 1 January 2020 179 104 17 910 456 058 473 968
At 31 December 2020 179 104 17 910 456 058 473 968
At 1 January 2021 179 104 17 910 456 058 473 968
Issue of new shares 17 910 1 791 336 565 338 356
At 31 December 2021
197 014 19 701 792 623 812 324
Shares and shareholder information
The company’s share capital at 31 December 2021 comprised 197 014 389 shares with a nominal value
of NOK 0.10 each. Each share carries one vote. There were 9 010 shareholders at 31 December 2021 (31
December 2020: 7 570 shareholders).
The 20 largest shareholders in Kitron ASA at 31 December 2021:
Shareholder Number Percentage
FOLKETRYGDFONDET 18 610 708 9.45 %
VEVLEN GÅRD AS 14 850 000 7.54 %
MP PENSJON PK 10 424 520 5.29 %
The Northern Trust Comp, London Br 9 430 009 4.79 %
Danske Invest Norge Vekst 7 165 164 3.64 %
AAT INVEST AS 7 052 772 3.58 %
J.P. MORGAN BANK LUXEMBOURG S.A. 6 191 985 3.14 %
VJ INVEST AS 4 514 760 2.29 %
Avanza Bank AB¹ 3 936 973 2.00 %
The Bank of New York Mellon SA/NV 3 757 000 1.91 %
The Bank of New York Mellon SA/NV 3 750 000 1.90 %
VERDIPAPIRFONDET HOLBERG NORGE 3 200 000 1.62 %
J.P. MORGAN BANK LUXEMBOURG S.A. 2 734 320 1.39 %
VARNER EQUITIES AS 2 711 724 1.38 %
VERDIPAPIRFONDET DNB SMB 2 677 623 1.36 %
VERDIPAPIRFOND ODIN NORGE 2 325 000 1.18 %
HAUSTA INVESTOR AS 1 984 000 1.01 %
EQUINOR PENSJON 1 846 166 0.94 %
The Bank of New York Mellon SA/NV 1 769 574 0.90 %
VERDIPAPIRFONDET KLP AKSJENORGE IN 1 721 433 0.87 %
Total 20 largest shareholders 110 653 731
56.17 %
Total other shareholders 86 360 658 43.83 %
Total outstanding shares 197 014 389
100.00 %
[1] Benecial owner: CEO Peter Nilsson 2 287 182 shares (1.16 per cent)
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
41ANNUAL REPORT 2021
Authorized share capital
Authorization to the board to issue shares
The ordinary general meeting of 21 April 2021 authorized the board of directors of Kitron ASA to increase
the share capital in accordance with the Norwegian Public Limited Liability Companies Act section 10-14 on
the following conditions:
• The share capital may, in one or more rounds, in total be increased with up to NOK 1 791 039.90.
• The authorization shall be valid until the Annual General Meeting in 2022, but no later than 30 June 2022.
• The shareholders’ pre-emptive rights according to the Norwegian Public Limited Liability Companies Act
section 10-4 may be set aside.
• The authorization is not intended for use to facilitate or obstruct the success of a take-over bid where
Kitron is the target company.
• The authorization encompasses share capital increase by contribution in any kind and the right to incur
Kitron ASA with special obligations according to the Norwegian Public Limited Liability Companies Act
section 10-2.
• The authorization encompasses resolutions on merger according to the Norwegian Public Limited
Liability Companies Act section 13-5.
• 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, for remuneration to the members of the board of directors of
Kitron ASA, for incentive schemes, and acquisition of property and business within Kitron ASA’s purpose.
• The board of directors decides on the other terms and conditions and is authorized to amend the articles
of association as implied by the use of this authorization.
• This authorization replaces any previously granted authorizations for the board of directors to increase
the share capital.
• The authority was exercised on 22 December 2021. The company carried out a private placement by
issuing 17 910 399 new shares. The company’s new registered share capital is 19 701 438.90, divided
into 197 014 389 shares, each with a par value of NOK 0.10 per share.
Authorization to the board to buy own shares
The ordinary general meeting on 21 April 2021authorized the board of directors of Kitron ASA to acquire
Kitron ASA’s own shares, for the purpose of ownership or charge, in accordance with the Norwegian Public
Limited Liability Companies Act sections 9-4 and 9-5 on the following conditions:
• The Board of Directors may acquire shares in Kitron ASA, on one or several occasions, provided that the
total combined nominal value of the acquired shares after the acquisition must not exceed ten per cent
of the share capital, i.e. up to a total nominal value of NOK 1,791,039.90. The authorization also includes
contract liens in the shares of Kitron ASA.
• The authorization is not intended for use to facilitate or obstruct the success of a take-over bid where
Kitron is the target company.
• Under this authorization the board of directors may 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 50 per share.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
42ANNUAL REPORT 2021
• Any and all previous authorizations given to the board of directors to acquire own shares shall be, and
hereby are, withdrawn with effect from the date this authorization is registered with the Norwegian
Register of Business Enterprises.
• Shares acquired according to the authorization shall either be cancelled, used as remuneration to the
members of the board of directors of Kitron ASA, used in incentive schemes or be used as consideration
in connection with acquisition of other companies or businesses, joint ventures or joint business
operations, and acquisition of property and business within Kitron ASA’s purpose.
• This authorization shall be valid until the 2022 annual general meeting, but not longer than 30 June
2022. The authority had not been exercised at 31 December 2021.
Note 19 - Share based payment
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 subprograms, each with an allocation of 1 250
000 option, where the rst program started 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 subprogram are linked to the 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. Each
subprogram is capped at 200 per cent increase of the market capitalization, adjusted for dividends and
share buy-backs. The program has a clawback clause. Each of the subprograms has a lock up-period of one
year and a down-sale period of two years
The Company utilizes a Monte Carlo simulation to determine the impact of stock option grants in
accordance with IFRS 2, Share-based payment, on the Company’s net income. The model utilizes certain
information, such as the interest rate on a risk-free security maturing generally at the same time as the
option being valued, and requires certain assumptions, such as the expected amount of time an option will
be outstanding until it is exercised or it expires and the volatility associated with the price of the underlying
shares of common stock, to calculate the fair value of stock options granted. The model also estimate the
likelihood of performance fulllment and takes this into account in the valuation.
During the period ended 31 December 2021, the Company has had share-based payment arrangements
for employees, as described below. Option granted as of 31.12.2021 show grants gross before forfeited
options.
Granted 2019 2020 2021
Type of arrangement Equity Settled Equity Settled Equity Settled
Dates of Grant 23.10.2019 10.07.2020 20.10.2021
Options granted as of 31.12.2021 1 250 000 1 250 000 1 190 000
Options not granted as of 31.12.2021 80 000 - 250 000
Contractual life 2.94 years 3.12 years 2.73 years
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
43ANNUAL REPORT 2021
Granted 2019 2020 2021
Vesting conditions
"100% of the options
will vest three years
after the start of the
second calendar
quarter of 2019.
The Employee must
remain an employee
of the Company or an
aliated company at
the end of the vesting
period.
The market cap of the
Company must have
increased according to
specic criterias during
the vesting period. The
number of options
that are vested is inter
alia linked linearly to
the development of
the share quote of the
Kitron shares at the
Oslo Stock Exchange,
adjusted for dividend
and share buy-backs.
The program has a
clawback clause."
"100% of the options
will vest three years
after the start of the
second calendar
quarter of 2020.
The Employee must
remain an employee
of the Company or an
aliated company at
the end of the vesting
period.
The market cap of the
Company must have
increased according to
specic criterias during
the vesting period. The
number of options
that are vested is inter
alia linked linearly to
the development of
the share quote of the
Kitron shares at the
Oslo Stock Exchange,
adjusted for dividend
and share buy-backs.
The program has a
clawback clause."
"100% of the options
will vest three years
after the start of the
second calendar
quarter of 2021.
The Employee must
remain an employee
of the Company or an
aliated company at
the end of the vesting
period.
The market cap of the
Company must have
increased according to
specic criterias during
the vesting period. The
number of options
that are vested is inter
alia linked linearly to
the development of
the share quote of the
Kitron shares at the
Oslo Stock Exchange,
adjusted for dividend
and share buy-backs.
The program has a
clawback clause."
Expiry date 30.09.2022 30.09.2023 30.09.2024
Fair value of Share Options granted is calculated using the Monte Carlo option pricing model. The weighted
average inputs to Monte Carlo model and Fair values per 31 December 2021 are listed below (calculated at
grant):
Granted 2019 2020 2021
Exercise price 0.10 0.10 0.10
Share price at grant date 9.14 13.90 20.15
Expected life from grant date 2.77 years 2.95 years 2.94 years
Volatility 29 % 36 % 35 %
Interest rate 1.19% 0.168% 1.12 %
Fair value per option 2.57 6.65 7.48
Expected volatility is based on historical volatility of the Company. The Company is listed on the Oslo Stock
Exchange.
Interest rates used are quoted Norwegian government bonds and bills retrieved from Norges Bank.
The total expensed amount in 2021 arising from the option plans are NOK 5 243 thousand, not including
social security (2020: NOK 2 885 thousand).
The total carrying amount per 31 December 2021 is NOK 11 485 thousand, not including social security
(2020: NOK 9 003 thousand). Accrued social security at 31 December 2021 is NOK 6 851 thousand (2020:
NOK 2 374 thousand).
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
44ANNUAL REPORT 2021
Quantity and weighted average prices
Activity Number of instruments Weighted Average Strike Price
Outstanding OB (01.01.2020) 1 250 000 0.10
Granted 1 400 000 0.10
Exercised - -
Forfeited -150 000 0.10
Expired - -
Outstanding CB (31.12.2020) 2 500 000 0.10
Vested CB -
Outstanding OB (01.01.2021) 2 500 000 0.10
Granted 1 190 000 0.10
Exercised -
Forfeited - 270 000 0.10
Expired - -
Outstanding CB (31.12.2021) 3 420 000 0.10
Vested CB - -
Options not granted CB (31.12.2021) 330 000
Outstanding instruments Vested instruments
Strike price
Number of
instruments
Weighted Average
remaining contractual life
Weighted Average
Strike Price
Vested instruments
31.12.2021
Weighted Average
Strike Price
0.10 3 420 000 1.70 0.10 - -
Board Number of shares Number of options
2021 2020 2021 2020
Tuomo Lähdesmäki, chairman 277 796 215 864 - -
Gro Brækken, board member 46 380 43 147 - -
Espen Gundersen, board member 52 380 49 147 - -
Maalfrid Brath, board member 22 677 19 147 - -
Christian Jebsen, board member 22 380 19 147 - -
Petra Grandinson, board member 14 254 9 081
Jarle Larsen, employee elected board member 15 724 12 491 - -
Tanja Rørheim, employee elected board member 22 380 19 147 - -
Bjørn M. Gottschlich, employee elected board member 22 580 19 347 - -
Management Number of shares Number of options
2021 2020 2021 2020
Peter Nilsson, CEO 2 287 182 2 079 182 1 030 000 760 000
Cathrin Nylander, CFO 955 627 868 752 370 000 270 000
Israel Losada Salvador, COO (left Kitron 30.09.2021) - 743 831 - 270 000
Kristoffer Asklöv, COO (joined Kitron 01.09.2021) 51 561 250 000
Stian Haugen, CTO 51 561 - 220 000 120 000
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
45ANNUAL REPORT 2021
Management Number of shares Number of options
2021 2020 2021 2020
Mindaugas Sestokas,Vice President and Managing Director 316 978 316 978 370 000 270 000
Hans Petter Thomassen, Vice President and Managing
Director
387 460 387 460 370 000 270 000
Stefan Hansson Mutas, Managing Director 219 261 219 261 370 000 270 000
Zygimantas Dirse, Managing Director 452 622 452 622 370 000 270 000
Note 20 - Accounts payable and other payables
NOK 1000 2021 2020
Accounts payable 917 779
702 368
NOK 1000 2021 2020
Public duties
44 195
26 583
Payable to related parties (note 27) - 11 342
Other accruals
86 862
90 168
Other payables 131 057
128 093
The carrying amount of the groups, trade and other payables are denominated in the following currencies:
NOK 1000 2021 2020
Trade and other payables
CNY
40 946
30 504
EUR
252 426
193 977
NOK
146 187
145 149
SEK
95 832
81 757
USD
497 714
361 605
HKD
16
16
CHF
357
1 054
GBP
6 085
4 664
JPY
3 358
11 527
PLN
5 581
36
DKK
334
172
Total trade and other payables 1 048 836
830 461
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
46ANNUAL REPORT 2021
Note 21 - Borrowings
NOK 1000 2021 2020
Long-term loans
Leasing
150 950
171 340
Other 1)
55 280
96 554
Total 206 230
267 894
Current loans
Debt to credit institutions 2) (Note 17)
205 621
233 611
Factoring debt 3)
358 928
271 267
Leasing
46 544
55 391
Other 1)
182 154
82 454
Total
793 247
642 723
Total loans
999 477
910 617
1) Other long-term and current loans consist of bank loans from the group’s principle banks. Interest is
payable at a rate of IBOR and a margin, dependent on Kitron’s NIBD/EBITDA ratio.
2) Kitron has established a group account agreement with the group’s main bank. This embraces the
Norwegian, Swedish, German, Polish and US companies. The group’s short term bank nancing is a revolving
facility. There was a draft at the group account agreement at 31 December 2021 of NOK 131.4 million (2020:
NOK 174.7 million). Interest is payable at a rate of IBOR and a margin.
3) Kitron has per 31 December 2021 factoring arrangements for the Norwegian, Swedish and Polish entities.
The factoring facility is a rolling facility and is subject to yearly renewal. Interest is payable at a rate of IBOR
and a margin.
The loan facilities with the company’s main bank, described in 1) and 2), include covenants relating to
factors as the company’s gearing ratio, earnings and loan-to-value ratio. The company complies with these
covenants at 31 December 2021.
Unrestricted bank deposits and unused credit lines amounted to NOK 512.5 million for the group at 31
December 2021 (NOK 218.2 million at 31 December 2020).
Periods to maturity of long-term loans:
NOK 1000 2021 2020
Between one and two years
104 806
90 428
Between two and ve years
81 109
153 608
Over 5 years
20 315
23 858
Total
206 230
267 894
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
47ANNUAL REPORT 2021
Carrying amount and fair value of long-term loans:
Carrying amount Fair value
NOK 1000 2021 2020 2021 2020
Leasing
150 950
171 340
146 086
164 750
Other
55 280
96 554
51 257
92 840
Total 206 230
267 894
197 343
257 590
Fair value is based on discounted cash ow with a discount rate of 4.0 per cent (2020: 4.0 per cent). The
carrying amount of current loans is virtually identical with fair value.
Carrying amount of the group’s loans in various currencies:
NOK 1000 2021 2020
NOK
544 511
512 325
SEK
82 302
25 234
EUR
192 117
213 445
USD
159 697
88 012
CNY
20 850
71 602
Total 999 477
910 617
Loans include NOK 802.0 million (2020: 683.9 million) in secured commitments (bank loans and other
secured loans).
Mortgages
NOK 1000 2021 2020
Debt secured by mortgages 878 327 787 768
Carrying amount of the group’s assets provided as security:
NOK 1000 2021 2020
Buildings and land
38 059
42 262
Machinery and equipment
108 879
116 532
Cash
10 014
21 567
Receivables
455 284
364 443
Inventory and contract assets
833 148
705 253
Total 1 445 384
1 250 057
For the Swedish entity there are company mortgages of SEK 46.5 million at 31 December 2021 (2020: SEK
46.5 million).
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
48ANNUAL REPORT 2021
Debt secured by mortgages includes leasing liabilities for machinery and equipment. The carrying amount
of these xed assets is included in the carrying amount of assets provided as security. Of the mortgage debt
in the consolidated accounts, the commitment related to leasing recognised in the balance sheet amounted
to NOK 76.3 million at 31 December 2021 (2020: NOK 103.5 million).
Conditions in the form of vendor’s xed charge are moreover related to deliveries from Kitron’s suppliers of
goods.
The group’s receivables recognised in the balance sheet are provided as security (factoring mortgage) for
obligations to DNB Finans.
The group’s guarantee provider had provided guarantees at 31 December for leasing obligations and tax due
but not paid. These totalled NOK 3.4 million (2020: NOK 3.5 million) and NOK 15.0 million (2020: NOK 15.0
million) respectively for the group.
Per 31 December Kitron ASA has granted parent company guarantees of 25.6 million EUR related to lease
obligations and factoring agreement for the polish subsidiary Kitron sp. z o.o (2020: EUR 25.6 million), and
350 million NOK related to bank nancing for Kitron AS and Kitron AB (2020: NOK 350 million)
Note 22 - Deferred income tax
Deferred tax is recognised net when the group has a legal right to net deferred tax assets against deferred
tax in the balance sheet and if the deferred tax is payable to the same tax authority.
Deferred tax asset:
NOK 1000 2021 2020
Deferred tax asset to be recovered after more than 12 months
73 989
72 384
Deferred tax liability:
NOK 1000 2021 2020
Deferred tax liability to be recovered after more than 12 months
4 223
4 728
Deferred tax asset (net) 69 766
67 656
Change in carrying amount of deferred tax asset:
NOK 1000 2021 2020
Opening balance
67 656
70 638
Currency translation differences
2 114
(2 216)
Prot and loss account (3 175) (1 622)
Other comprehensive income
793
856
Equity for the period
2 379
-
Closing balance 69 766
67 656
Changes in deferred tax assets and deferred tax (with netting in same tax regime).
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
49ANNUAL REPORT 2021
Deferred tax liabilities:
NOK 1000 Fixed assets Contract assets
Deferred capital gain
Total
At 1 January 2020 8 167 11 768 50 19 985
Prot/(loss) for the period (1 922) (575) (5) (2 502)
Other comprehensive income - - - -
Currency translation differences 196 58 0 254
At 31 December 2020
6 441 11 251 45 17 737
At 1 January 2021 6 441 11 251 45 17 737
Prot/(loss) for the period 1 172 (1 386) (13) (227)
Other comprehensive income - - - -
Currency translation differences (178) (19) - (197)
At 31 December 2021
7 435 9 846 32 17 313
Deferred tax asset:
NOK 1000
Provision and current
assets
Loss carried forward Pension Total
At 1 January 2020 733 88 590 1 298 90 621
Prot/(loss) for the period 914 (4 934) (102) (4 122)
Other comprehensive income - 806 50 856
Currency translation differences 9 (1 971) - (1 962)
At 31 December 2020 1 656 82 491 1 246 85 393
At 1 January 2021 1 656 82 491 1 246 85 393
Prot/(loss) for the period 1 873 (5 167) (108) (3 402)
Other comprehensive income - 709 84 793
Equity for the period - 2 379 - 2 379
Currency translation differences 135 1 782 - 1 917
At 31 December 2021 3 664 82 194 1 222 87 079
Deferred tax assets related to tax loss carried forward is recognised in the balance sheet to the extent that it
is probable that the group can apply this against future taxable prot. Tax losses carried forward are related
to the operations in Norway and USA.
Deferred tax assets related to losses carried forward in Norway of TNOK 26 840 (2020: TNOK 32 456) and
in the USA of TNOK 54 204 (2020: TNOK 50 035).
The business improvements made and the expected development on future sales and protability warrant
deferred tax assets in the balance sheet of Kitron Technologies Inc. Utilization time for State tax losses
carried forward is 20 years and innite for Federal tax losses carried forward.
There are no restrictions on the right to carry the tax loss forward in other countries.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
50ANNUAL REPORT 2021
Note 23 - Retirement benet obligations
The pension obligation below is relating to life-long pension benets to a former CEO. The pension plan is
unfunded.
The AFP-scheme is a dened benet multi-enterprise scheme, but is recognised in the accounts as a
dened contribution scheme until reliable and sucient information is available for the group to recognise
its proportional share of pension cost, pension liability and pension funds in the scheme. The company’s
liabilities are therefore not recognised as debt in the balance sheet.
Unfunded
NOK 1000 2021 2020
Carrying amount of the obligation
Pension commitments
5 557
5 666
Costs recognised in the prot and loss account (incl in note 8)
Pension costs (gain) dened benet plans
81
101
Cost recognised in other comprehensive income
Actuarial losses (gains) pensions
383
229
Dened pension benet plans
Carrying amount of the obligation is determined as follows
Present value of pension obligation (5 557) (5 666)
Fair value of plan asset
-
-
Net commitments in unfunded dened benet plans (5 557) (5 666)
Hereof payroll tax on the pension obligations (687) (700)
Net pension obligation in the balance sheet
(5 557) (5 666)
Net pension costs comprise
Interest cost (81) (101)
Total, included in payroll costs
(81) (101)
Change in carrying amount of pension commitments
Opening balance (5 666) (5 896)
Cost recognised in the prot and loss account for the year (81) (101)
Cost reccognised in other comprehensive income (383) (229)
Benets paid
573
560
Closing balance
(5 557) (5 666)
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
51ANNUAL REPORT 2021
Unfunded
NOK 1000 2021 2020
The following assumptions have been applied in calculating pension commitments:
Discount rate
1.50 %
1.50 %
Annual pension adjustment
2.25%
1.75 %
Social security tax rate
14.10 %
14.10 %
Assumptions on mortality rates are based on published statistics in Norway
K2013
K2013
Number of employeees in dened benet plans 1
1
Note 24 - Dividends per share
For 2020 a dividend of NOK 0.70 per share was paid. The Kitron Board of Directors will propose a dividend of
NOK 0.25 per share for the nancial year 2021 to the Annual General Meeting in April 2022. The dividend will
be payable to shareholders registered in Kitron’s shareholder register with the Norwegian Central Securities
Depository (Euronext Securities Oslo – formerly named Euronext VPS) as of expiry of 29 April 2022 (being
shareholders as of the date of the Annual General Meeting’s resolution). The total proposed dividend is NOK
49.3 million.
Note 25 - Cash ow from operations
NOK 1000 2021 2020
Prot/(loss) before tax 204 165 274 087
Depreciation and impairment 101 048 101 828
Change in inventory (335 320) (99 378)
Change in contract assets (13 926) (72 941)
Change in accounts receivable and other short term receivables (30 105) (139 515)
Change in factoring debt 87 661 22 683
Change in accounts payable and other short term payables 215 411 164 021
Change in pension funds/obligations (299) (409)
Effect from option costs 5 243 2 885
Change in other items (44 844) 23 546
Other adjustments booked to equity (12 377) -
Forward contract (7 474) -
Interest cost - net 16 225 23 852
Foreign exchange losses / (gains) on operating activities (2 053) 7 790
Cash ow from continuing operations 183 357 308 448
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
52ANNUAL REPORT 2021
Loans presented as nancing activities in the cash ow statement:
NOK 1000 2021 2020
Leasing - long-term 150 950 171 340
Leasing - short-term 46 544 55 391
Total lease liablities 197 494 226 731
Long-term bank loans 55 280 96 554
Short-term bank loans 182 154 82 454
Total borrowings 237 434 179 008
NOK 1000 Finance leases Borrowings Total
Loans as at 31 December 2020 (226 731) (179 008) (405 739)
Cash ows 29 185 (41 165) (46 587)
Lease liabilities recognised (191) 17 208
Foreign exchange adjustments 243 (53) 190
Other non-cash movements - (17 208) -
Loans as at 31 December 2021 (197 494) (237 434) (434 928)
NOK 1000 Finance leases Borrowings Total
Loans as at 31 December 2019 (231 154) (185 121) (416 275)
Cash ows 29 653 22 790 52 443
Lease liabilities recognised (21 359) (21 359)
Foreign exchange adjustments (3 871) (7 264) (11 135)
Other non-cash movements - (9 413) (9 413)
Loans as at 31 December 2020 (226 731) (179 008) (405 739)
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
53ANNUAL REPORT 2021
Notes 26 - Leases
Amounts recognised in the balance sheet
The balance sheet shows the following amounts relating to leases:
NOK 1000
31.12.2021 31.12.2020
Right to use assets
Buildings and land
112 742
117 262
Macinery and equipment
126 761
139 630
Total 239 503
256 892
Lease liabilities**
Current
46 544
55 391
Non-Current
150 950
171 340
Total 197 494
226 731
**included in the line items “Loans” in the balance sheet.
Additions to the right-of-use assets in 2021 were NOK 30.6 million (2020: NOK 37.8 million) (note 12).
Amounts recognised in the statement of prot or loss
The statement of prot or loss shows the following amounts relating to leases:
NOK 1000
31.12.2021 31.12.2020
Depreciation charge of right-of-use assets
Buildings and land
19 469
17730
Macinery and equipment
30 477
32 617
Total 49 946
50 347
Interest expense
8 935
9 456
Expenses relating to short-term leases
1 419
4 674
Expenses relating to leases of low-value 870 955
Expenses relating to variable lease payments not included in lease liabilities
-
-
Income from subleasing right of use assets
-
-
Gains or losses arising from sale and leaseback transactions
-
-
The total cash outow for leases in 2021 was NOK 31.5 million (2020: NOK 29.7 million).
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
54ANNUAL REPORT 2021
Notes 27 - Related parties
NOK 1000 2021 2020
Remuneration of senior executives
Pay and other benets (1) 21 200 31 758
Balance items at 31 December resulting from
purchase/sale of goods and services
Payable to related parties:
Senior executives (1) - 11 352
Total
- 11 352
(1) Senior executives comprise the corporate management team at Kitron ASA. See table in below for a more extensive description of
remuneration of senior executives. The amount at 31 December comprises accrued bonuses to corporate management team.
Remuneration of senior executives, directors and auditor
NOK 1000 2021 2020
Directors' fee: 2 834
2 590
- chairman
550
523
- board members
2 284
2 067
Auditors fee
3 068 3 082
- statutory audit 2 699 2 735
- audit related services
- tax related services 164 176
- other services 205 171
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
55ANNUAL REPORT 2021
Remuneration of senior executives:
Fixed remuneration Variable remun.
Name
Year
Base
salary
Other
bents
1
Bonus
earned
2
Multi-
year
variable
Pension
expense
3
Total
remuneration
Proportion of
xed/variable
Peter Nilsson
CEO
(01.01.2021 - 31.12.2021)
2021 3 030 294 1 502 4 826 100%/0%
2020 3 019 281 2 134 1 371 6 804 69%/31%
Cathrin Nylander
CFO
(01.01.2021 - 31.12.2021)
2021 2 153 282 294 2 729 100%/0%
2020 2 172 241 1 516 305 4 235 64%/36%
Kristoffer Asklöv
COO
(01.09.2021 - 31.12.2021)
2021 764 269 1 033 100%/0%
2020
Israel L. Salvador
COO
(01.01.2021 - 30.09.2021)
2021 1 726 121 204 2 051 100%/0%
2020 2 173 191 1 536 263 4 163 63%/37%
Stian Haugen
CTO
(01.01.2021 - 31.12.2021)
2021 1 217 172 73 1 461 100%/0%
2020 1 086 173 857 75 2 191 61%/39%
Zygimantas Dirse
Managing Director,
Kitron Electronics
Manufacturing
(Ningbo) CO Ltd.,
China
(01.01.2021 - 31.12.2021)
2021 1 738 327 2 066 100%/0%
2020 1 765 335 1 285 3 385 62%/38%
Stefan H Mutas
Managing Director,
Kitron AB, Sweden
(01.01.2021 - 31.12.2021)
2021 1 695 107 782 2 584 100%/0%
2020 1 729 121 1 235 594 3 679 66%/34%
Mindaugas
Sestokas
Managing Director,
UAB Kitron, Lithuania
&VP Central Eastern
Europe
(01.01.2021 - 31.12.2021)
2021 1 981 126 2 107 100%0%
2020 2 092 133 1 494 3 719 60%40%
Hans Petter
Thomassen
Managing Director,
Kitron AS, Norway
& VP North America
(01.01.2021 - 31.12.2021)
2021 1 840 198 2 265 100%0%
2020 1 822 226 1 296 239 3 583 64%36%
[1] Other benets include the value of any benets or prerequisites, such as non-business or non-assignment related travel, medical, car,
education and training, residence or housing, credit cards, and other benets in kind or prerequisites.
[2] Bonus earned includes the total monetary value of annual bonuses from the short term incentive program for the nancial year.
[3] Pension expense includes contributions that effectively took place during the reported nancial year to nance a fund or other pension
scheme for future pension payout for the senior executive.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
56ANNUAL REPORT 2021
Name of Board
member
Position Type of remuneration 2020 2021
Tuomo Juhani
Lähdesmäki
(01.01.2021-
31.12.2021)
Chair
Total regular board remuneration 510 524
Amount of board remuneration paid in cash 304 313
Amount of board remuneration used for share acquisition 206 211
Remuneration for chair of the remuneration committee 13 26
Gro Merete Brækken
(01.01.2021-
31.12.2021)
Deputy
chairperson
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Remuneration for member of the remuneration committee 13 26
Espen Gundersen
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Remuneration for chair of the audit committee 29 37
Maalfrid Brath
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Remuneration for member of the remuneration committee 5 26
Christian Jebsen
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Remuneration for member of the audit committee 29 32
Bjørn Martin
Gottschlich
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Tanja Rørheim
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Remuneration for member of the audit committee 31 32
Jarle Larsen
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 237 262
Amount of board remuneration paid in cash 173 196
Amount of board remuneration used for share acquisition 64 66
Petra Grandinson
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 193 262
Amount of board remuneration paid in cash 90 157
Amount of board remuneration used for share acquisition 103 105
Remuneration for member of the remuneration committee 35
Elisabeth Jacobsen Deputy member
Regular board remuneration
Remuneration for member of the audit committee 12
No payroll tax is included in the tables above. Pension contribution includes paid contribution to the company’s pension scheme.
For employee representatives only the board remuneration is declared.
The company has not given any loans or security for directors or senior executives at 31 December 2021.
For more information about remuneration of senior executives, see separate Remunerataion Report available at kitron.com.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
57ANNUAL REPORT 2021
Note 28 - Interest in subsidiaries
Set out below are the group’s principal subsidiaries at 31 December 2021. Unless otherwise stated, the
subsidiaries as listed below have share capital consisting solely of ordinary shares, which are held directly
by the group and the proportion of ownership interests held equals to the voting rights held by group. The
country of incorporation or registration is also their place of principal place of business.
Company name Country of incorporation Shareholding Voting share Principal activities
Kitron AS Arendal, Norway 100% 100% EMS manufacturing
Kitron AB Jönköping, Sweden 100% 100% EMS manufacturing
Kitron Hong Kong Ltd Hong Kong 100% 100% Trading, sourcing
Kitron GmbH Nürtingen, Germany 100% 100% Sales
Kitron Holding USA Inc Delaware, USA 100% 100% Shareholding
UAB Kitron Real Estate Kaunas, Lithuania 100% 100% Property
UAB Kitron Kaunas, Lithuania 100% 100% EMS manufacturing
Kitron sp. z o.o Grudziadz, Poland 100% 100% EMS Manufacturing
The Kitron Hong Kong Ltd subsidiary owns shares in the following subsidiaries:
Company name Country of incorporation Shareholding Voting share Principal activities
Kitron Electronics Manufacturing
(Ningbo) CO., Ltd.
Ningbo China 100% 100% EMS manufacturing
Kitron Electromechanical (Ningbo)
CO. Ltd
Ningbo China 100% 100% Purchasing
The Kitron Holding USA Inc subsidiary owns shares in the following subsidiaries:
Company name Country of incorporation Shareholding Voting share Principal activities
Kitron Technologies Inc Delaware, USA 100% 100% EMS manufacturing
Kitron Systems Inc Delaware, USA 100% 100% Dormant
Note 29 - Government grants
The group has received grants in 2021 of TNOK 930 (2020: 2 594). TNOK 797 was for employee training and
NOK 133 was a business reward.
The amount has reduced payroll expenses and other operating expenses correspondingly.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
58ANNUAL REPORT 2021
Note 30 - Derivatives
In December 2021, Kitron announced an agreement to acquire the Danish EMS company BB Electronics
A/S. The purchase price to be paid, after certain post signing adjustments, is DKK 663.9 million, subject to
post-closing adjustments, if any. The acquisition was completed early in January 2022.
As a result of the agreement, and with the purpose of securing cash ow in connection with purchase price
payment, Kitron ASA entered a foreign currency forward contract, see details in table below:
Maturity 7 January 2022
Trade date 23 December 2021
Currency pair DKKNOK
Buy 650 million DKK
Rate 1.3549
Market value at 31 December 2021 -7 474 TNOK
Spot rate 1.3434
Unrealized loss at 31 December 2021 of 7 474 TNOK is included in other short-term debt and other
comprehensive income.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
59ANNUAL REPORT 2021
Note 31 – Subsequent events
In December 2021, Kitron announced an agreement to acquire the Danish EMS company BB Electronics
A/S, which has production facilities in Denmark, China and the Czech Republic.
BB Electronics is a full-service EMS (Electronics Manufacturing Services) provider based in Horsens,
Denmark. The group had revenues of about DKK 1,000 million in 2021 and about 750 employees and has
over the past years grown signicantly, both organically and through M&A.
The customer base is concentrated within industry, telecom and medical. The acquisition was completed
early in January 2022.
The purchase price to be paid, after certain post signing adjustments, is DKK 663.9 million, subject to post-
closing adjustments, if any.
The preliminary fair value assessment of the assets and liabilities recognized as a result of the acquisition
is as follows:
Fair value
NOK 1000 01.01.2022
Goodwill 27 454
Other intangible assets 25 400
Other intangible assets, customer contracts 509 263
Property, plant and equipment 115 395
Right-of-use assets 38 084
Deferred tax assets 15 936
Inventory 464 073
Accounts receivable 218 270
Contract assets 74 896
Other receivables 34 888
Cash and cash equivalents 26 565
Deferred tax (114 302)
Loans (124 796)
Accounts payable (434 937)
Other payables (182 882)
Tax payable (6 174)
Loans (15 934)
Net identiable assets acquired 671 198
Add: goodwill 224 819
Net assets acquired 896 017
The goodwill is attributable to workforce and synergies. It will not be deductible for tax purposes.
CONSOLIDATED ANNUAL ACCOUNTS AND NOTES
60ANNUAL REPORT 2021
ANNUAL ACCOUNTS KITRON ASA
Income statement, Kitron ASA
NOK 1000 Note 2021 2020
Revenues
Sales revenues 2.7 118 029 113 322
Total revenues 118 029 113 322
Operating costs
Payroll expenses 3,4,7,11,13 71 706 70 377
Depreciation and impairments 5.6 5 760 6 286
Other operating expenses 13 70 714 59 793
Total operating costs 148 180 136 456
Operating prot / (loss) (30 151) (23 134)
Financial income and expenses
Intra group interest income 7 5 370 7 592
Other interest income 3 326 3 925
Other nancial income 7.18 160 266 96 693
Interest expenses 7 182 9 402
Other nancial expenses 18 1 993 1 729
Net nancial items 159 787 97 079
Prot before tax 129 636 73 945
Tax 8 (4 187) (3 788)
Net prot / (loss) 133 823 77 733
ANNUAL ACCOUNTS AND NOTES KITRON ASA
61ANNUAL REPORT 2021
Balance sheet at 31 December, Kitron ASA
NOK 1000 Note 31.12.2021 31.12.2020
Assets
Fixed Assets
Intangible xed assets
Deferred tax 8 31 505 35 717
Other intangible assets 6 39 229 38 343
Total intangible xed assets 70 734 74 060
Tangible xed assets
Machinery, equipment etc. 5.16 566 620
Financial xed assets
Investment in subsidiaries 9.16 421 254 421 254
Intra-group loans 7,14,16 141 669 138 521
Total nancial xed assets 562 923 559 775
Total xed assets 634 223 634 455
Current Assets
Receivables
Accounts receivables 7.16 69 733 53 091
Other receivables 7.16 185 793 159 391
Total receivables 255 526 212 482
Bank deposits, cash in hand etc. 17 348 790 11 716
Total current assets 604 316 224 198
Total assets 1 238 539 858 653
ANNUAL ACCOUNTS AND NOTES KITRON ASA
62ANNUAL REPORT 2021
Balance sheet at 31 December, Kitron ASA (continued)
NOK 1000 Note 31.12.2021 31.12.2020
Liabilities and equity
Equity
Paid-in equity
Share capital (197 014 389 shares at NOK 0,10) 10.12 19 701 17 910
Share premium reserve 10 579 392 242 827
Total paid-in equity 599 093 260 737
Other Equity 10.11 217 090 130 958
Total equity 816 183 391 695
Liabilities
Long-term liabilities
Pension commitments 4 5 557 5 666
Loans 15 54 000 90 000
Total long-term liabilities 59 557 95 666
Current liabilities
Loans 15,16,17 277 433 219 508
Accounts payable 7 13 395 7 296
Dividend 49 254 125 373
Other current liabilities 22 717 19 115
Total current liabilities 362 799 371 292
Total liabilities 422 356 466 958
Total liabilities and equity 1 238 539 858 653
Oslo, 22 March 2022
Tuomo Lähdesmäki
Chairman
Gro Brækken
Deputy Chairman
Christian Jebsen
Board Member
Espen Gundersen
Board Member
Petra Grandinson
Board Member
Maalfrid Brath
Board Member
Bjørn Gottschlich
Employee Elected Board Member
Tanja Rørheim
Employee Elected Board Member
Jarle Larsen
Employee Elected Board Member
Lars Peter Nilsson
CEO of Kitron ASA
ANNUAL ACCOUNTS AND NOTES KITRON ASA
63ANNUAL REPORT 2021
Cash ow statement, Kitron ASA
NOK 1000 Note 2021 2020
Cash ows from operational activities
Prot before tax 129 636 73 945
Ordinary depreciation 5 760 6 286
Change in accounts receivables -16 642 -27 671
Change in accounts payables 6 099 300
Change in pension funds/ obligations -408 -409
Option costs without cash effect 5 243 2 885
Change in other accrual items -21 350 409
Net cash ow from operational activities 108 338 55 745
Cash ows from investment activities
Acquisition of xed assets -6 591 -22 337
Net cash ow from investment activities -6 591 -22 337
Cash ows from nancing activities
Net change in overdraft facilities -42 075 57 573
Payment from new borrowings 100 000 80 000
Repayment of borrowings -36 000 -81 250
Issue of ordinary shares 338 775
Payment of dividend -125 373 -89 552
Net cash ow from nancing activities 235 327 -33 229
Net change in cash and cash equivalents 337 074 190
Cash and cash equivalents at 1 January 11 716 11 526
Cash and cash equivalents at 31 December 348 790 11 716
ANNUAL ACCOUNTS AND NOTES KITRON ASA
64ANNUAL REPORT 2021
Accounting principles
The annual nancial statements have been prepared in accordance with the Norwegian Accounting Act
and Norwegian generally accepted accounting principles (NGAAP). All amounts are in NOK 1 000 unless
otherwise stated.
Revenue recognition
Income from the sale of goods and services is recognised at the time of delivery.
Classication and recognition of assets and liabilities
Assets intended for long-term ownership or use, are classied as xed. Other assets are classied as current.
Accounts receivable which fall due within one year are always classied as current assets. Analogue criteria
are applied in classifying liabilities. Current assets are recognised at the lower of cost price and fair value.
Current liabilities are recognised in the balance sheet at the nominal value on the establishment date. Fixed
assets are recognised at their acquisition cost. Tangible xed assets which decline in value are depreciated
on a straight-line basis over their expected useful lifetime. Fixed assets are written down to their fair value
where this is lower than the cost price and the decline in value is not considered to be temporary. Long-term
debt in Norwegian kroner, with the exception of other provisions, is recognised at the nominal value on the
establishment date. Provisions are discounted if the interest element is signicant.
Intangible xed assets
Intangible xed assets, excluding deferred tax benet, consist of activated computer software costs. Costs
associated with maintaining computer software programmes are recognised as an expense as incurred.
Development costs that are directly attributable to the design and testing of identiable and unique software
products controlled by the group are recognised as intangible assets when the following criteria are met:
• it is technically feasible to complete the software product so that it will be available for use;
• management intends to complete the software product and use it;
• there is an ability to use the software product;
• it can be demonstrated how the software product will generate probable future economic benets;
• adequate technical, nancial and other resources to complete the development and to use the software
product are available; and
• the expenditure attributable to the software product during its development can be reliably measured.
Computer software is depreciated on a straight-line basis to their residual value over their expected useful
life, which is 7 years
Tangible xed assets
Tangible xed assets are recognised in the balance sheet and depreciated on a straight line basis over their
expected useful lifetime if they have an expected lifetime of more than three years and a cost price which
exceeds NOK 15 000. Maintenance costs for tangible xed assets are recognised as an operating expense
as they arise, while upgrades or improvements are added to the cost price of the asset and depreciated
accordingly. The distinction between maintenance and upgrading/improvement is calculated in relation to
the condition of the asset when it was acquired. Leased xed assets are recognised in the balance sheet as
tangible xed assets if the lease is regarded as nancial.
Subsidiaries
Subsidiaries are recognised in the company accounts using the cost method. The investment is written
down to its fair value when the fair value is lower than the cost price and this fall in value is not expected to
be temporary.
NOTES TO THE ANNUAL ACCOUNTS KITRON ASA
ANNUAL ACCOUNTS AND NOTES KITRON ASA
65ANNUAL REPORT 2021
Accounts receivables
Accounts receivable from customers and other receivables are recorded at their nominal value after
deducting a provision for bad debts. The latter is based on an individual assessment of each receivable. An
unspecied provision is made for minor receivables to cover estimated bad debts.
Foreign currencies
Balance sheet items in foreign currencies are translated at exchange rate at 31 December. Transactions in
foreign currency are translated at exchange rate at transaction date.
Pensions
The company has both dened contribution- and dened benet plan. From 2016 the company has dened
benet plan for former CEO only. A dened contribution plan is one under which the company pays xed
contributions to a separate legal entity. The company has no legal or constructive obligations to pay
further contributions if the fund does not hold sucient assets to pay all employees the benets relating
to employee service in the current and prior periods. A dened benet plan is one that is not a dened
contribution plan, and typically denes an amount of pension benet an employee will receive on retirement.
That benet is normally dependent on one or more factors such as age, years of service and pay. The
liability recognised in the balance sheet in respect of dened benet pension plans is the present value of
the dened benet obligation at the balance sheet date less the fair value of plan assets. An independent
actuary calculates the pension commitment annually. The present value of the dened benet obligations is
determined by discounting the estimated future cash outows using interest rates of high quality corporate
bonds. Estimated payroll tax on the net pension commitment calculated by an actuary is added to the
carrying amount of the obligation. Changes in pension plan benets are recognised immediately in the
income statement. Actuarial gains and losses are recognised in other comprehensive income. For dened
contribution plans, the company pays contribution to publicly- or privately administered pension insurance
plans on an obligatory, contractual or voluntary basis. The company has no further payment obligations
once the contributions have been paid. The contributions are recognised as a payroll expense when they fall
due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the
future payments is available. The pension plan comply with the Norwegian mandatory service pension act.
Tax
Tax cost in the prot and loss account comprises the sum of tax payable for the period and changes
to deferred tax or deferred tax assets. Deferred tax is calculated at a rate of 22 per cent on the basis of
temporary differences between accounting and tax values, plus possible tax loss for carrying forward at
the end of the scal year. Tax increasing and reducing temporary differences which reverse or could reverse
in the same period are eliminated, and are recorded net in the balance sheet. Recognition of deferred tax
assets on net tax-reducing differences which have not been eliminated, and tax loss for carrying forward,
is based on expected future earnings. Deferred tax and tax assets which can be recognised in the balance
sheet are stated net.
Tax on group contribution paid which is recognised as an increase in the cost price of shares in other
companies, and tax on group contribution received which is recognised directly against equity, is recognised
directly against tax in the balance sheet (against tax payable if the group contribution has an effect on tax
payable and against deferred tax if the group contribution has an effect on deferred tax).
Cash ow statement
The cash ow statement is prepared using the indirect method. Cash and cash equivalents include cash
in hand, bank deposits and other short-term liquid placements which immediately and with insignicant
currency risk can be converted to known amounts of cash and with a maturity which is less than three
months from the acquisition date.
ANNUAL ACCOUNTS AND NOTES KITRON ASA
66ANNUAL REPORT 2021
Note 1 - Financial risk
Interest rate risk
Interest on the group’s interest-bearing debt is charged at the relevant market rate prevailing at any given
time (base rate plus interest margin). No interest rate instruments have been established in the company.
The company does not have signicant interest-bearing assets except from inter-company loans, so that
its income and cash ow from operational activities are not signicantly exposed to changes in the market
interest rate.
Currency risk
Exchange rate developments represent a risk for the company both directly and indirectly. At 31 December
2021 the company had one forward contract regarding DKK that reduced risk (note 19).
Price risk
The business of Kitron ASA is administration of its subsidiaries, and revenues consist primarily of group
contributions. The company is not exposed to signicant commodity price risk.
Note 2 - Sales revenues
The business of Kitron ASA is administration of its subsidiaries, and revenues consist primarily of fees and
group contributions.
Sales revenues by geographical area
NOK 1000 2021 2020
Norway
32 353
32 050
Sweden
21 390
20 295
Lithuania
42 768
43 013
Other
21 518
17 964
Total 118 029
113 322
Note 3 - Payroll expenses
Payroll costs
NOK 1000 2021 2020
Pay
58 440
61 550
Payroll taxes
3 647
3 093
Pension costs
1 692
1 819
Other remuneration
7 927
3 915
Total 71 706
70 377
Average number of FTEs
70
67
ANNUAL ACCOUNTS AND NOTES KITRON ASA
67ANNUAL REPORT 2021
Note 4 - Pensions and similar obligations
The pension obligation below includes life-long benets to a former CEO. The pension plan is unfunded.
The new AFP-scheme, in force from 1 January 2011, is a dened benet multi-enterprise scheme, but is
recognised in the accounts as a dened contribution scheme until reliable and sucient information is
available for the group to recognise its proportional share of pension cost, pension liability and pension
funds in the scheme. The company’s liabilities are therefore not recognised as debt in the balance sheet.
Dened pension benet plans
NOK 1000 2021 2020
Carrying amount of the obligation is determined as follows:
Present value of accrued pension commitments in unfunded benet plans
5 557
5 666
+/- unrecognised actuarial gains and losses
-
-
Net commitments in unfunded dened benet plans 5 557
5 666
Hereof payroll tax on the pension obligation
687
700
Pension costs comprise:
Interest costs
81
101
Net pension cost for unfunded plans 81
101
Net pension cost for contribution based pension plans 1 611
1 718
Net pension costs included in note 3 1 692
1 819
Cost recognised in equity
Actuarial losses pensions
383
229
The following assumptions have beenptions have been applied
in calculating pension commitments
Discount rate
1.5 %
1.5 %
Annual pension adjustment
2.25 %
1.75 %
Social security tax rate
14.1 %
14.1 %
ANNUAL ACCOUNTS AND NOTES KITRON ASA
68ANNUAL REPORT 2021
Note 5 - Tangible xed assets and depreciation
NOK 1000
Machinery and
equipment
Acquisition cost at 1 January 18 830
Additions during the year -
Disposal during the year -
Acquisition cost at 31 December 18 830
Accumulated depreciation 1 January 18 210
Depreciation during the year 54
Disposal during the year -
Accumulated depreciation at 31 December 18 264
Book value 31 December 566
Useful lifetime 3 - 5 years
Depreciation plan Linear
Annual lease of xed assets unrecognised in the balance sheet
NOK 1000 Length of lease Annual rent
Premises >2022 870
Company cars 2022 661
Note 6 - Other intangible assets
NOK 1000 System software
Acquisition cost at 1 January 92 225
Additions during the year 6 591
Acquisition cost at 31 December 98 816
Accumulated depreciation at 1 January 53 882
Depreciation during the year 5 705
Accumulated depreciations at 31 December 59 587
Book value 31 December 39 229
Depreciation plan Linear
Useful lifetime 5-7 years
ANNUAL ACCOUNTS AND NOTES KITRON ASA
69ANNUAL REPORT 2021
Note 7 - Related parties
NOK 1000 2021 2020
Sales revenues
From subsidiaries (1)
118 029
113 322
Purchase of goods and services
From subsidiaries (1)
47 967
41 835
Remuneration of senior executives
Pay and other short-term benets (2) 12 100 17 393
Financial income
Interest income from subsidiaries (1)
5 370
7 592
Dividend and group contribution from subsidiaries
160 266
95 160
Total 165 636
102 752
Balance items at 31 December resulting from transactions with related parties
Receivables and loans
Subsidiaries (1)
366 930
338 610
Total 366 930 338 610
Payables
Subsidiaries (1)
5 459
3 843
Total
5 459
3 843
(1) Revenues from subsidiaries consist primarily of fees and group contributions. Purchase and sales of
goods and services from subsidiaries consist primarily of services from corporate personnel employed in
subsidiaries. Interest income from subsidiaries consist of interest on long-term loans.
(2) Senior executives comprise member of corporate management team employed in Kitron ASA. See table
in note 13 for a more extensive description of remuneration of senior executives.
No loans/security have been provided for the chief executive, the chairman or other related parties. No
single loan/security totals more than ve per cent of the company’s equity.
ANNUAL ACCOUNTS AND NOTES KITRON ASA
70ANNUAL REPORT 2021
Note 8 - Taxes
NOK 1000 2021 2020
Tax cost for the year breaks down into:
Tax payable
-
-
Change in deferred tax (8 294) (3 837)
Deferred tax charged to equity
4107 50
Total tax cost
(4 187) (3 787)
Calculation of tax base for the year:
Prot before tax 129 636 73 930
Permanent differences *) (167 947) (91 377)
Change in temporary differences 10 077 4 301
Group contribution received 57 225 60 849
Change in tax loss carried forward (28 991) (47 703)
Tax base for the year
-
-
Overview of temporary differences
Fixed assets (606) (876)
Pensions (5 557) (5 666)
Other temporary differences (15 123) (4 685)
Gain and loss account 77 97
Total
(21 209) (11 130)
Loss carried forward (121 999) (151 220)
Total
(143 208) (162 350)
Deferred tax asset (22%) 31 505 35 717
Explanation of why tax cost for the year does not equal 22% of pre-tax result
22% of loss before tax 28 520 16 265
Permanent differences 22% (36 948) (20 103)
Tax effect of actuarial gains and losses charged to equity 84 50
Tax effect of gains and losses on derivatives booked against equity 1644 -
Tax effect of transaction costs booked against equity 2378 -
Prior Year adjustments 135
Calculated tax cost
(4 187) (3 787)
Effective tax rate **) (3.2 %) (5.1%)
* ) Includes non-tax-deductible costs such as entertainment, group contribution and dividend
**) Tax cost in relation to pre-tax result
ANNUAL ACCOUNTS AND NOTES KITRON ASA
71ANNUAL REPORT 2021
Note 9 - Investment in subsidiaries
NOK 1000 Country of incorporation Share-holding
Voting
share
Book
value
Kitron AS Arendal, Norway 100% 100% 243 737
Kitron AB Jönköping, Sweden 100% 100% 13 463
Kitron Hong Kong Ltd Hong Kong 100% 100% 1
Kitron GmbH Metzingen, Germany 100% 100% 30 194
Kitron Holding USA Inc Delaware, USA 100% 100% 69 433
UAB Kitron Real Estate Kaunas, Lithuania 100% 100% 12 422
UAB Kitron Kaunas, Lithuania 100% 100% 29 201
Kitron sp. z o.o Grudziadz, Poland 100% 100% 22 804
Total investment in subsidiaries 421 254
The Kitron Hong Kong Ltd subsidiary owns shares in the following subsidiaries:
NOK 1000 Country of incorporation Share-holding
Voting
share
Book
value
Kitron Electronics Manufacturing
(Ningbo) Co., Ltd.
Ningbo China 100% 100% 38 231
Kitron Electromechanical (Ningbo) CO.
Ltd
Ningbo, China 100% 100% 2 042
The Kitron Holding USA Inc subsidiary owns shares in the following subsidiaries:
NOK 1000 Country of incorporation Share-holding
Voting
share
Book value
Kitron Technologies Inc Delaware, US 100% 100% -
Kitron Systems Inc Delaware, US 100% 100% -
ANNUAL ACCOUNTS AND NOTES KITRON ASA
72ANNUAL REPORT 2021
Note 10 - Equity
NOK 1000 Share capital Share premium fund Other equity Total equity
At 31 December 2020 17 910 242 827 130 958 391 695
Net prot - - 133 823 133 823
Effect from option costs - - 5 243 5 243
Actuarial gains and losses
pensions
- - (299) (299)
Issue of ordinary shares 1 791 336 565 338 356
Gain/(losses) on derivatives (5 831) (5 831)
Tax effect from costs charged
to equity
2 450 2 450
Accrued dividend - - (49 254) (49 254)
At 31 December 2021 19 701 579 392 217 090 816 183
Note 11 - Share-based payments
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 subprograms, each with an allocation of 1 250
000 option, where the rst program started 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 subprogram are linked to the 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. Each
subprogram is capped at 200 per cent increase of the market capitalization, adjusted for dividends and
share buy-backs. The program has a clawback clause. Each of the subprograms has a lock up-period of one
year and a down-sale period of two years
The Company utilizes a Monte Carlo simulation to determine the impact of stock option grants in
accordance with IFRS 2, Share-based payment, on the Company’s net income. The model utilizes certain
information, such as the interest rate on a risk-free security maturing generally at the same time as the
option being valued, and requires certain assumptions, such as the expected amount of time an option will
be outstanding until it is exercised or it expires and the volatility associated with the price of the underlying
shares of common stock, to calculate the fair value of stock options granted. The model also estimate the
likelihood of performance fulllment and takes this into account in the valuation.
During the period ended 31 December 2021, the Company has had share-based payment arrangements for
employees, as described below.
ANNUAL ACCOUNTS AND NOTES KITRON ASA
73ANNUAL REPORT 2021
Granted
2019 2020 2021
Type of arrangement Equity Settled Equity Settled Equity Settled
Dates of Grant 23.10.2019 10.07.2020 20.10.2021
Options granted as of 31.12.2021 1 250 000 1 250 000 1 190 000
Options not granted as of 31.12.2021 80 000 - 250 000
Contractual life 2.94 years 3.12 years 2.73 years
Vesting conditions
"100% of the options
will vest three years
after the start of the
second calendar
quarter of 2019.
The Employee must
remain an employee
of the Company or an
aliated company at
the end of the vesting
period.
The market cap of the
Company must have
increased according to
specic criterias during
the vesting period. The
number of options
that are vested is inter
alia linked linearly to
the development of
the share quote of the
Kitron shares at the
Oslo Stock Exchange,
adjusted for dividend
and share buy-backs.
The program has a
clawback clause."
"100% of the options
will vest three years
after the start of the
second calendar
quarter of 2020.
The Employee must
remain an employee
of the Company or an
aliated company at
the end of the vesting
period.
The market cap of the
Company must have
increased according to
specic criterias during
the vesting period. The
number of options
that are vested is inter
alia linked linearly to
the development of
the share quote of the
Kitron shares at the
Oslo Stock Exchange,
adjusted for dividend
and share buy-backs.
The program has a
clawback clause."
"100% of the options
will vest three years
after the start of the
second calendar
quarter of 2021.
The Employee must
remain an employee
of the Company or an
aliated company at
the end of the vesting
period.
The market cap of the
Company must have
increased according to
specic criterias during
the vesting period. The
number of options
that are vested is inter
alia linked linearly to
the development of
the share quote of the
Kitron shares at the
Oslo Stock Exchange,
adjusted for dividend
and share buy-backs.
The program has a
clawback clause."
Expiry date 30.09.2022 30.09.2023 30.09.2024
Fair value of Share Options granted is calculated using the Monte Carlo option pricing model. The weighted
average inputs to Monte Carlo model and Fair values per 31 December 2021 are listed below (calculated at
grant):
Granted 2019 2020 2021
Exercise price 0.10 0.10 0.10
Share price at grant date 9.14 13.90 20.15
Expected life from grant date 2.77 years 2.95 years 2.94 years
Volatility 29 % 36 % 35 %
Interest rate 1.19% 0.168% 1.12 %
Fair value per option 2.57 6.65 7.48
Expected volatility is based on historical volatility of the Company. The Company is listed on the Oslo Stock
Exchange.
Interest rates used are quoted Norwegian government bonds and bills retrieved from Norges Bank.
ANNUAL ACCOUNTS AND NOTES KITRON ASA
74ANNUAL REPORT 2021
The total expensed amount in 2021 arising from the option plans are NOK 5 243 thousand, not including
social security (2020: NOK 2 885 thousand).
The total carrying amount per 31 December 2021 is NOK 11 485 thousand, not including social security
(2020: NOK 9 003 thousand). Accrued social security at 31 December 2021 is NOK 6 851 thousand (2020:
NOK 2 374 thousand).
Quantity and weighted average prices
Activity Number of instruments Weighted Average Strike Price
Outstanding OB (01.01.2020) 1 250 000 0.10
Granted 1 400 000 0.10
Exercised - -
Forfeited -150 000 0.10
Expired - -
Outstanding CB (31.12.2020) 2 500 000 0.10
Vested CB 0
Outstanding OB (01.01.2021) 2 500 000 0.10
Granted 1 190 000 0.10
Exercised -
Forfeited - 270 000 0.10
Expired 0 -
Outstanding CB (31.12.2021) 3 420 000 0.10
Vested CB 0 -
Options not granted CB (31.12.2021) 330 000
Outstanding instruments Vested instruments
Strike price
Number of
instruments
Weighted Average
remaining contractual life
Weighted Average
Strike Price
Vested instruments
31.12.2021
Weighted Average
Strike Price
0.10 3 420 000 1.70 0.10 0 -
Board Number of shares Number of options
2021 2020 2021 2020
Tuomo Lähdesmäki, chairman 277 796 215 864 - -
Gro Brækken, board member 46 380 43 147 - -
Espen Gundersen, board member 52 380 49 147 - -
Maalfrid Brath, board member 22 677 19 147 - -
Christian Jebsen, board member 22 380 19 147 - -
Petra Grandinson, board member 14 254 9 081
Jarle Larsen, employee elected board member 15 724 12 491 - -
Tanja Rørheim, employee elected board member 22 380 19 147 - -
Bjørn M. Gottschlich, employee elected board member 22 580 19 347 - -
ANNUAL ACCOUNTS AND NOTES KITRON ASA
75ANNUAL REPORT 2021
Management Number of shares Number of options
2021 2020 2021 2020
Peter Nilsson, CEO 2 287 182 2 079 182 1 030 000 760 000
Cathrin Nylander, CFO 955 627 868 752 370 000 270 000
Israel Losada Salvador, COO (left Kitron 30.09.2021) - 743 831 - 270 000
Kristoffer Asklöv, COO (joined Kitron 01.09.2021) 51 561 250 000
Stian Haugen, CTO 51 561 - 220 000 120 000
Mindaugas Sestokas,Vice President and Managing Director 316 978 316 978 370 000 270 000
Hans Petter Thomassen, Vice President and Managing
Director
387 460 387 460 370 000 270 000
Stefan Hansson Mutas, Managing Director 219 261 219 261 370 000 270 000
Zygimantas Dirse, Managing Director 452 622 452 622 370 000 270 000
Note 12 - Shares and shareholders information
The company’s share capital at 31 December 2021 comprised 197 014 389 shares with a nominal value of
NOK 0.10 each. Each share carries one vote. There were 9 010 shareholders at 31 December 2021.
Shareholder Number Percentage
FOLKETRYGDFONDET 18 610 708 9.45 %
VEVLEN GÅRD AS 14 850 000 7.54 %
MP PENSJON PK 10 424 520 5.29 %
The Northern Trust Comp, London Br 9 430 009 4.79 %
Danske Invest Norge Vekst 7 165 164 3.64 %
AAT INVEST AS 7 052 772 3.58 %
J.P. MORGAN BANK LUXEMBOURG S.A. 6 191 985 3.14 %
VJ INVEST AS 4 514 760 2.29 %
Avanza Bank AB
1
3 936 973 2.00 %
The Bank of New York Mellon SA/NV 3 757 000 1.91 %
The Bank of New York Mellon SA/NV 3 750 000 1.90 %
VERDIPAPIRFONDET HOLBERG NORGE 3 200 000 1.62 %
J.P. MORGAN BANK LUXEMBOURG S.A. 2 734 320 1.39 %
VARNER EQUITIES AS 2 711 724 1.38 %
VERDIPAPIRFONDET DNB SMB 2 677 623 1.36 %
VERDIPAPIRFOND ODIN NORGE 2 325 000 1.18 %
HAUSTA INVESTOR AS 1 984 000 1.01 %
EQUINOR PENSJON 1 846 166 0.94 %
The Bank of New York Mellon SA/NV 1 769 574 0.90 %
VERDIPAPIRFONDET KLP AKSJENORGE IN 1 721 433 0.87 %
Total 20 largest shareholders 110 653 731
56.17 %
Total other shareholders 86 360 658 43.83 %
Total outstanding shares 197 014 389
100.00 %
[1] Benecial owner: CEO Peter Nilsson 2 287 182 shares (1.16 per cent)
ANNUAL ACCOUNTS AND NOTES KITRON ASA
76ANNUAL REPORT 2021
Authorized share capital
Authorization to the board to issue shares
The ordinary general meeting of 21 April 2021 authorized the board of directors of Kitron ASA to increase
the share capital in accordance with the Norwegian Public Limited Liability Companies Act section 10-14 on
the following conditions:
• The share capital may, in one or more rounds, in total be increased with up to NOK 1 791 039.90.
• The authorization shall be valid until the Annual General Meeting in 2022, but no later than 30 June 2022.
• The shareholders’ pre-emptive rights according to the Norwegian Public Limited Liability Companies Act
section 10-4 may be set aside.
• The authorization is not intended for use to facilitate or obstruct the success of a take-over bid where
Kitron is the target company.
• The authorization encompasses share capital increase by contribution in any kind and the right to incur
Kitron ASA with special obligations according to the Norwegian Public Limited Liability Companies Act
section 10-2.
• The authorization encompasses resolutions on merger according to the Norwegian Public Limited
Liability Companies Act section 13-5.
• 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, for remuneration to the members of the board of directors of
Kitron ASA, for incentive schemes, and acquisition of property and business within Kitron ASA’s purpose.
• The board of directors decides on the other terms and conditions and is authorized to amend the articles
of association as implied by the use of this authorization.
• This authorization replaces any previously granted authorizations for the board of directors to increase
the share capital.
• The authority was exercised on 22 December 2021. The company carried out a private placement by
issuing 17 910 399 new shares. The company’s new registered share capital is 19 701 438.90, divided
into 197 014 389 shares, each with a par value of NOK 0.10 per share.
ANNUAL ACCOUNTS AND NOTES KITRON ASA
77ANNUAL REPORT 2021
Authorization to the board to buy own shares
The ordinary general meeting on 21 April 2021authorized the board of directors of Kitron ASA to acquire
Kitron ASA’s own shares, for the purpose of ownership or charge, in accordance with the Norwegian Public
Limited Liability Companies Act sections 9-4 and 9-5 on the following conditions:
• The Board of Directors may acquire shares in Kitron ASA, on one or several occasions, provided that the
total combined nominal value of the acquired shares after the acquisition must not exceed ten per cent
of the share capital, i.e. up to a total nominal value of NOK 1,791,039.90. The authorization also includes
contract liens in the shares of Kitron ASA.
• The authorization is not intended for use to facilitate or obstruct the success of a take-over bid where
Kitron is the target company.
• Under this authorization the board of directors may 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 50 per share.
• Any and all previous authorizations given to the board of directors to acquire own shares shall be, and
hereby are, withdrawn with effect from the date this authorization is registered with the Norwegian
Register of Business Enterprises.
• Shares acquired according to the authorization shall either be cancelled, used as remuneration to the
members of the board of directors of Kitron ASA, used in incentive schemes or be used as consideration
in connection with acquisition of other companies or businesses, joint ventures or joint business
operations, and acquisition of property and business within Kitron ASA’s purpose.
• This authorization shall be valid until the 2022 annual general meeting, but not longer than 30 June
2022. The authority had not been exercised at 31 December 2021.
Note 13 - Remuneration of senior executives, directors and auditors
Remuneration of senior executives, directors and auditor
NOK 1000 2021 2020
Directors' fee: 2 834 2 407
- chairman 550 523
- board members 2 284 2 067
Auditors fee 1 455 1 454
- statutory audit 1 252 1 251
- audit related services -
- tax related services 70 78
- other services 133 125
ANNUAL ACCOUNTS AND NOTES KITRON ASA
78ANNUAL REPORT 2021
Remuneration of senior executives:
Fixed remuneration Variable remun.
Name
Year
Base
salary
Other
bents
1
Bonus
earned
2
Multi-
year
variable
Pension
expense
3
Total
remuneration
Proportion of
xed/variable
Peter Nilsson
CEO
(01.01.2021 - 31.12.2021)
2021 3 030 294 1 502 4 826 100%/0%
2020 3 019 281 2 134 1 371 6 804 69%/31%
Cathrin Nylander
CFO
(01.01.2021 - 31.12.2021)
2021 2 153 282 294 2 729 100%/0%
2020 2 172 241 1 516 305 4 235 64%/36%
Kristoffer Asklöv
COO
(01.09.2021 - 31.12.2021)
2021 764 269 1 033 100%/0%
2020
Israel L. Salvador
COO
(01.01.2021 - 30.09.2021)
2021 1 726 121 204 2 051 100%/0%
2020 2 173 191 1 536 263 4 163 63%/37%
Stian Haugen
CTO
(01.01.2021 - 31.12.2021)
2021 1 217 172 73 1 461 100%/0%
2020 1 086 173 857 75 2 191 61%/39%
Zygimantas Dirse
Managing Director,
Kitron Electronics
Manufacturing
(Ningbo) CO Ltd.,
China
(01.01.2021 - 31.12.2021)
2021 1 738 327 2 066 100%/0%
2020 1 765 335 1 285 3 385 62%/38%
Stefan H Mutas
Managing Director,
Kitron AB, Sweden
(01.01.2021 - 31.12.2021)
2021 1 695 107 782 2 584 100%/0%
2020 1 729 121 1 235 594 3 679 66%/34%
Mindaugas
Sestokas
Managing Director,
UAB Kitron, Lithuania
&VP Central Eastern
Europe
(01.01.2021 - 31.12.2021)
2021 1 981 126 2 107 100%0%
2020 2 092 133 1 494 3 719 60%40%
Hans Petter
Thomassen
Managing Director,
Kitron AS, Norway
& VP North America
(01.01.2021 - 31.12.2021)
2021 1 840 198 2 265 100%0%
2020 1 822 226 1 296 239 3 583 64%36%
[1] Other benets include the value of any benets or prerequisites, such as non-business or non-assignment related travel, medical, car,
education and training, residence or housing, credit cards, and other benets in kind or prerequisites.
[2] Bonus earned includes the total monetary value of annual bonuses from the short term incentive program for the nancial year.
[3] Pension expense includes contributions that effectively took place during the reported nancial year to nance a fund or other pension
scheme for future pension payout for the senior executive.
ANNUAL ACCOUNTS AND NOTES KITRON ASA
79ANNUAL REPORT 2021
Name of board
member
Position Type of remuneration 2020 2021
Tuomo Juhani
Lähdesmäki
(01.01.2021-
31.12.2021)
Chair
Total regular board remuneration 510 524
Amount of board remuneration paid in cash 304 313
Amount of board remuneration used for share acquisition 206 211
Remuneration for chair of the remuneration committee 13 26
Gro Merete Brækken
(01.01.2021-
31.12.2021)
Deputy
chairperson
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Remuneration for member of the remuneration committee 13 26
Espen Gundersen
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Remuneration for chair of the audit committee 29 37
Maalfrid Brath
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Remuneration for member of the remuneration committee 5 26
Christian Jebsen
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Remuneration for member of the audit committee 29 32
Bjørn Martin
Gottschlich
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Tanja Rørheim
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 255 262
Amount of board remuneration paid in cash 191 196
Amount of board remuneration used for share acquisition 64 66
Remuneration for member of the audit committee 31 32
Jarle Larsen
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 237 262
Amount of board remuneration paid in cash 173 196
Amount of board remuneration used for share acquisition 64 66
Petra Grandinson
(01.01.2021-
31.12.2021)
Board member
Total regular board remuneration 193 262
Amount of board remuneration paid in cash 90 157
Amount of board remuneration used for share acquisition 103 105
Remuneration for member of the remuneration committee 35
Elisabeth Jacobsen Deputy member
Regular board remuneration
Remuneration for member of the audit committee 12
No payroll tax is included in the tables above.
For employee representatives only the board remuneration is declared.
The company has not given any loans or security for directors or senior executives at 31 December 2021.
For more information about remuneration of senior executives, see separate Remunerataion Report availible at kitron.com.
ANNUAL ACCOUNTS AND NOTES KITRON ASA
80ANNUAL REPORT 2021
Note 14 - Receivables
NOK 141.7 million of the NOK 141.7 million in intra-group loans at 31 December 2021 falls due later than one
year after the end of the scal year.
NOK 1000 2021 2020
Kitron Technologies Inc 123 039 118 994
UAB Kitron Real Estate 18 630 19 527
Total 141 669 138 521
Note 15 - Information on long-term liabilities to nancial institutions
The company has long-term bank loans of NOK 90.0 million at 31 December 2021 (NOK 126.0 million at 31
December 2020). Of this is NOK 36.0 million short-term part and is due within one year. The group’s long-
term and short-term bank nancing includes covenants relating to factors such as the company’s balance
sheet values and earnings. The company complies with these covenants at 31 December 2021.
Note 16 - Mortages
NOK 1000 2021 2020
Debt secured by mortgages: 331 433 309 508
Carrying amount of assets provided as security:
Machinery and equipment 566 620
Receivables 397 195 350 981
The carrying amount of assets provided as security for the debt include assets in Kitron ASA only. In addition
the bank has security in assets in other Norwegian and Swedish Kitron companies.
The group’s guarantee provider had provided guarantees at 31 December for leasing obligations and tax
due but not paid. These totalled NOK 0.5 million (2020: NOK 0.5 million) and NOK 5.0 million (2020: NOK 4.0
million) respectively.
Per 31 December 2021 Kitron ASA has granted the following parent company guarantees:
• 14.3 million EUR related to lease obligations for the Polish subsidiary Kitron sp. z.o.o (2020: 14.3 million EUR)
• 11.3 million EUR related to factoring agreement for the Polish subsidiary Kitron sp. z o.o (2020: 11.3
million EUR)
• 350 million NOK related to bank nancing for Kitron AS and Kitron AB (2020: 350 million NOK)
ANNUAL ACCOUNTS AND NOTES KITRON ASA
81ANNUAL REPORT 2021
Note 17 - Liquid assets
Kitron ASA has established a group account agreement with the company’s main bank. This embraces
Kitron ASA and its Norwegian, Swedish, German, US and Polish subsidiaries. Unused credit lines amounted
to NOK 90.2 million at the end of 2021.
Note 18 - Items consolidated in the accounts
Other nancial income
NOK 1000 2021 2020
Dividend and group contribution 160 266 95 160
Currency gain 1 533
Total other nancial income 160 266 96 693
Other nancial expenses
Currency loss 1 467 -
Other nancial expenses 526 1 729
Total other nancial expenses 1 993 1 729
Note 19 - Derivatives
In December 2021, Kitron announced an agreement to acquire the Danish EMS company BB Electronics
A/S. The purchase price to be paid, after certain post signing adjustments, is DKK 663.9 million, subject to
post-closing adjustments, if any. The acquisition was completed early in January 2022.
As a result of the agreement, and with the purpose of securing cash ow in connection with purchase price
payment, Kitron ASA entered a foreign currency forward contract, see details in table below:
Maturity 7 January 2022
Trade date 23 December 2021
Currency pair DKKNOK
Buy 650 million DKK
Rate 1.3549
Market value at 31 December 2021 -7 474 TNOK
Spot rate 1.3434
Unrealized loss at 31 December 2021 of 7 474 TNOK is included in other short-term debt and charged to
equity.
ANNUAL ACCOUNTS AND NOTES KITRON ASA
82ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT
83ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT
84ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT
85ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT
86ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT
87ANNUAL REPORT 2021
RESPONSIBILITY STATEMENT
We conrm to the best of our knowledge that:
• the consolidated nancial statements for 2021 have been prepared in accordance with IFRS as adopted by
the EU as well as additional information requirements in accordance with the Norwegian Accounting Act and
that
• the nancial statements for the parent company for 2021 have been prepared in accordance with the
Norwegian Accounting Act and generally accepted accounting practice in Norway
and that
• the information presented in the nancial statements gives a true and fair view of the Company’s and Group’s
assets liabilities nancial position and result for the period viewed in their entirety and that
• the Board of Directors’ report gives a true and fair view of the development performance and nancial position
of the Company and Group and includes a description of the principle risks and uncertainties.
RESPOSIBILITY STATEMENT
Oslo, 22 March 2022
Tuomo Lähdesmäki
Chairman
Gro Brækken
Deputy Chairman
Christian Jebsen
Board Member
Espen Gundersen
Board Member
Petra Grandinson
Board Member
Maalfrid Brath
Board Member
Bjørn Gottschlich
Employee Elected Board Member
Tanja Rørheim
Employee Elected Board Member
Jarle Larsen
Employee Elected Board Member
Lars Peter Nilsson
CEO of Kitron ASA
88ANNUAL REPORT 2021
DEFINITION OF ALTERNATIVE PERFORMANCE MEASURES
Kitron uses terms in the consolidated nancial statements that are not anchored in the IFRS accounting standards.
As being an Electronics Manufacturing Services company, Kitron uses Alternative Performance Measures which
are relevant for understanding and evaluation of performance within manufacturing.
Our denitions and explanations of these terms follow below:
Order backlog
All rm orders and 4 months of committed customers forecast
at revenue value as at balance sheet date.
Foreign exchange effects
Group consolidation restated with exchange rates as
comparable period the previous year. Change in volume or
balance calculated with the same exchange rates for the both
periods are dened as underlying growth. Change based on
the change in exchange rates are dened as foreign exchange
effects. The sum of underlying growth and foreign exchange
effects represent the total change between the periods.
EBITDA
Operating prot (EBIT) + Depreciation and Impairments
EBIT
Operating prot
EBIT margin (%)
Operating prot (EBIT) / Revenue
Net working capital
Inventory + Contract assets + Accounts Receivables –
Accounts Payable
Operating capital
Other intangible assets + Tangible xed assets + Net working
capital
Return on operating capital (ROOC) %
Annualised Operating prot (EBIT) / Operating Capital
Return on operating capital (ROOC) R3 %
(Last 3 months Operating prot (EBIT))*4) / (Last 3 months
Operating Capital /3)
Direct Cost
Cost of material + Direct wages (subset of personnel expenses
only to include personnel directly involved in production)
Days of Inventory Outstanding
360/ (Annualised Direct Costs/(Inventory + Contract assets))
Days of Inventory Outstanding R3
360/ ((Last 3 months Direct Costs *4) / (Last 3 months
Inventory and Contract assets/3))
Days of Receivables Outstanding
360/ (Annualised Revenue/Trade Receivables)
Days of Receivables Outstanding R3
360/ ((Last 3 months Revenue*4)/(Last 3 months Trade
Receivables/3))
Days of Payables outstanding
360/ ((Annualised Cost of Material + Annualised other
operational expenses) / (Trade Payables)
Days of Payables Outstanding (R3)
360/ (((Last 3 months (Cost of Material + other operational
expenses)*4) / (Last 3 months Trade Payables)/3))
Cash conversion cycle (CCC)
Days of inventory outstanding + Days of receivables
outstanding – Days of payables outstanding
Cash conversion cycle (CCC) R3
Days of inventory outstanding (R3) + Days of receivables
outstanding (R3) – Days of payables outstanding (R3)
Net Interest-bearing debt
- Cash and cash equivalents + Loans (Noncurrent liabilities) +
Loans (Current liabilities)
Interest-bearing debt
Loans (non-current liabilities) + Loans (current liabilities)
Inventory turns
Annualised direct costs / (Inventory + Contract assets)
Variable contribution
Revenue - Direct cost
Net gearing
Net interest bearing debt / Equity
Equity Ratio
The ratio of Equity to Total Assets
DEFINITION OF APMs
89ANNUAL REPORT 2021
CORPORATE GOVERNANCE
Kitron’s corporate governance principles clarify the
division of roles between shareholders, the Board
of Directors and the corporate management. The
principles are also intended to help safeguard the
interests of shareholders, employees and other
stakeholders, such as customers and suppliers, as
well as society at large. The primary intention is to
increase predictability and transparency, and thereby
reduce uncertainties associated with the business.
It is Kitron’s intent to practice good corporate
governance in accordance with laws and regulations
and the recommendations of Oslo Børs under the
‘comply or explain’ concept. This review has been
prepared by the board of Kitron based on Norwegian
Code of Practice for Corporate Governance dated
14 October 2021 (“the Code”). The code is available
at www.nues.no.
According to the Kitron’s own evaluation, Kitron
deviates from the code on the following points:
§6 General meetings
Vote separately on each candidate. For practical
reasons in the voting, the candidates are grouped
into one vote.
• All members of the Board of Directors, the
Nomination Committee and the auditor are
present. The Chairman of the Board and the
auditor are always present to respond to any
questions. From the Group perspective, this is
considered sucient.
• Independent chairman for the general meeting.
• The Chairman of the Board normally chairs
the General Meeting. The Board will make
arrangements for an independent chair if the
setting so requires.
1. Report on Corporate Governance
The report follows the structure of the Code of
Practice. The Corporate Governance report is
subject to annual evaluation and discussion by the
Board. The following report was issued at the Board
meeting on 22 March 2022.
2. Business
Kitron’s business purpose clause is stated in the
company’s articles of association: Kitron’s business
purpose is manufacturing, and development
activities related to electronics. The business includes
purchase and sale of shares and companies in the
same or related business sectors. The business
may also include related consultancy activities and
other activities associated with the operation. The
company’s objectives, strategies and risk proles
should be evaluated at least annually to create value
for shareholders.
The company’s main goals, strategies and risk
proles are presented in the annual report, ESG
report and on the company’s website. It is the
board’s opinion that these objectives, strategies and
risk proles are within the scope of the business
purpose clause. The objectives for the business are
set with a view to creating value for shareholders
in a sustainable manner. The board of directors
has considered nancial, social and environmental
factors when dening the company’s strategies,
primary objectives and risk prole.
Long term objectives, strategies and the risk prole
are evaluated once a year in connection with the
work on strategy, or as necessary in connection with
major events or structural changes.
Kitron’s vision is to provide solutions that deliver
success for its customers. Kitron’s core values to
support the vision are commitment, innovation and
engagement.
The group’s current Ethical Code (Ethical Guidelines,
Supplier Guidelines and Anti-Bribery policy) was
approved by the Board in 2018. It is based largely
on international initiatives and guidelines related to
social responsibility, including the ILO conventions.
The Ethical Code includes topics such as human
rights, environment, relations with our customers
and suppliers, corruption and condentiality.
The Code applies to all Kitron board members, elected
ocers, permanent and temporary employees, hired
staff, consultants and agents acting in or on behalf
of Kitron. The Code also applies to all contractors,
sub- contractors, suppliers and sub-suppliers. It
includes all companies in the Kitron group.
CORPORATE GOVERNANCE
90ANNUAL REPORT 2021
CORPORATE GOVERNANCE
3. Equity and dividends
The parent company’s share capital on 31 December
2021 amounted to NOK 19 701 438.90.
Total equity for the group on 31 December 2021 was
NOK 1228.0 million, corresponding to an equity ratio
of 37.1 per cent. Considering the nature and scope
of Kitron’s business, the board considers that the
company has adequate equity and capital structure.
Existing mandates granted to the board, to issue
shares and to purchase its own shares, are presented
in the shareholder information section of the annual
report. The mandates are restricted to dened
purposes and limited in time to no later than the date
of the next Annual General Meeting.
Kitron’s dividend policy states: “Kitron’s dividend
policy is to pay out an annual dividend of 20 to 60 per
cent of the company’s consolidated net prot before
non-recurring items. When deciding on the annual
dividend the company will consider the company’s
nancial position, investment plans as well as the
needed nancial exibility to provide for sustainable
growth.”
4. Equal treatment of shareholders and
transactions with close associates
There is only one class of shares, and all shares
have equal voting rights. The nominal amount per
share is NOK 0.10. The articles of association place
no restriction on voting rights. Kitron has issued
an insider manual with guidelines and control
procedures. According to the company’s ethical
guidelines, board members and the executive
management must notify the board if they have any
direct or indirect material interest in any transaction
contemplated or entered by the company.
5. Shares and negotiability
There are no provisions in the Company’s Articles of
Association that limit the right to own, trade or vote
for shares in the Company.
6. General meetings
Shareholders exercise the ultimate authority in
Kitron through the Annual General Meeting. All
shareholders are entitled to attend a general meeting
as long as they are recorded in the company’s share
register no later than the fth business day before the
date of the general meeting. Representatives of the
board, Chairman of the Nomination Committee, the
nomination committee, and the auditor are present.
The notice of the meeting, the agenda and detailed
and comprehensive supporting information,
including the nomination committee’s justied
recommendations, are made available on Kitron’s
website at least 21 days before a general meeting
takes place. At the same time the notice and agenda
are distributed to all shareholders. For administrative
purposes, the shareholders must give notice of their
attendance at the meeting minimum two working
days before the meeting.
The general meeting deals with such matters as
required by Norwegian law. Shareholders who
cannot attend the meeting in person can vote by
proxy and voting instructions can be given on each
item on the agenda. In addition, shareholders may
vote in advance, either in writing or by electronic
means, up to 2 days prior to the general meeting.
The general meetings are opened by the chair of the
board. Normally, the board proposes that the chair
of the board shall also chair the general meetings.
The board will propose an independent chair for
the general meeting if any of the matters to be
considered calls for such arrangement. The notices
and minutes of the general meetings are published
in Oslo Børs’ information system (www.newsweb.
oslobors.no, ticker: KIT) and on Kitron’s website.
7. Nomination committee
Kitron’s nomination committee is stated in the
articles of association. The committee shall have
two or three members, including the head of the
committee. The general meeting elects the head
and the members of the nomination committee and
determines its remuneration. The general meeting
has resolved a mandate and stipulated guidelines
for the duties of the nomination committee that
is compliant with the Code. The members of the
nomination committee are elected for a period of up
to two years.
The nomination committee shall propose and
present to the general meeting: Candidates for
election to the board, remuneration of the board, the
nomination committee, and new members of the
nomination committee.
Composition
The committee shall have two to three members,
including the head of the committee. At the
91ANNUAL REPORT 2021
CORPORATE GOVERNANCE
composition of the nomination committee, the
interests of the shareholders will be considered, as
well as the members’ independence of the board
and of the executive management.
The nomination committee members
After the Annual General Meeting 21 April 2021, the
nomination committee had the following members:
• Ola Wessel-Aas, chairperson elected until the
Annual General Meeting in 2022
• Ole Petter Kjerkreit, elected until the Annual
General Meeting in 2022
• The committee’s members Ola Wessel-Aas
and Ole Petter Kjerkreit are independent of the
Kitron’s management and the Board
Submitting proposals to the nomination
committee
Deadline for submitting proposals to the nomination
committee is four weeks prior to General Meeting
Notice.
8. Board of directors: composition and
independence
According to the articles of association, the
board shall consist of 3 to 6 shareholder elected
members as resolved by the general meeting. The
board currently consists of six shareholder-elected
members and three members elected by and among
the employees.
Board members are elected for a period of up to two
years. The chairman of the board is elected by the
general meeting. There is no corporate assembly in
Kitron.
The board’s composition shall ensure that it can
effectively and proactively perform its supervisory
and strategic functions. Furthermore, the board is
composed to enable it to always act independently of
special interests. The representation of shareholders
was proposed by the nomination committee and
unanimously resolved by the general meeting.
After the General Meeting 21 April 2021, the board
of directors consists of nine members and currently
has the following composition:
• Tuomo Lähdesmäki (Chairman), re-elected
until the Annual General Meeting in 2022
• Gro Brækken (Vice chairman), re-elected until
the Annual General Meeting in 2022
• Espen Gundersen, re-elected until the Annual
General Meeting in 2022
• Maalfrid Brath, re-elected until the Annual
General Meeting in 2022
• Christian Jebsen, re-elected until the Annual
General Meeting in 2022
• Petra Grandinson, elected until the Annual
General Meeting in 2022
• Bjørn M. Gottschlich, elected by and among
employees
• Jarle Larsen, elected by and among
employees
• Tanja Rørheim, elected by and among
employees
All shareholder-elected directors are considered as
independent of the management. The same applies
in relation to important business relations and
owners.
Board members who own shares in Kitron by 31
December 2021:
• Tuomo Lähdesmäki - 277 796 shares
• Gro Brækken - 46 380 shares
• Espen Gundersen - 52 380 shares
• Maalfrid Brath - 22 677 shares
• Christian Jebsen - 22 380 shares
• Petra Grandinson - 14 254 shares
• Tanja Rørheim - 22 380 shares
• Bjørn M. Gottschlich - 22 580 shares
• Jarle Larsen 15 724 shares in Kitron.
See presentation of board members for details.
92ANNUAL REPORT 2021
CORPORATE GOVERNANCE
9. The work of the board of directors
The board has an overall responsibility for
safeguarding the interests of all shareholders and
other stakeholders. Furthermore, it is the board’s
duty and responsibility to exercise overall control
of the company, and to supervise the management
and the company’s operations. The division of roles
between board and management is specied in
Kitron’s rules of procedure for the board. The board
has approved an annual meeting plan for its work,
which includes meetings with a special focus on
strategy and budgeting. The board conducts a self-
evaluation once a year.
The rules of procedures for the board of directors
also includes a statement on how the board of
directors and the senior management shall handle
agreements with related parties, including whether
an independent valuation shall be obtained. The
board of directors shall include a report on such
agreements in the annual report.
Kitron’s board shall also serve as a constructive
and qualied discussion partner for the executive
management. One of the board’s key duties is
to establish appropriate strategies for the group.
It is important in this context that the board, in
cooperation with the management, ensures that
the strategies are implemented, that the results are
measured and evaluated and that the strategies are
developed in the most appropriate way. Kitron has
dened performance parameters for the strategies
and can thus measure its performance.
The board receives nancial reports monthly from
the administration. The underlying data for these
reports are prepared at each reporting unit. The
information is checked, consolidated, and processed
by the group’s corporate nancial staff to produce
the consolidated reports that are submitted to the
board. The reports also include relevant operational
matters. The group does not have a separate
internal audit function. Account controls are
exercised through segregation of duties, guidelines
and approval procedures. The corporate nancial
staff is responsible for establishing guidelines and
principles. The corporate nancial staff handles
the group’s nancial transactions. Each prot
centre is responsible for the commercial benet
of manufacturing contracts. Responsibility for the
commercial content of signicant procurement
contracts rests with the corporate sourcing
organisation.
The board conducts annual evaluations of the
executive managers and their performance. These
evaluations also cover an assessment of cooperation
between the board and the management. The results
of these evaluations represent an important element
in the remuneration and incentive programs, which
are described in the notes to the nancial statements.
The board had 11 meetings during 2021 with 100
per cent participation.
The board’s audit committee
The board’s audit committee is appointed by Kitron
ASA’s board of directors and is a sub-committee
of the board. The audit committee mandate was
revised and updated in 2020 in accordance with new
regulations. The audit committee will on behalf of
the board supervise the nancial reporting process
to ensure the integrity of the nancial statements.
The audit committee will also go through: the
company’s internal supervisory/control routines and
risk management system, the external audit process
including a recommendation in the choice of an
external auditor, the company’s routines regarding
compliance with laws and regulations affecting
the nancial reporting and the company’s code of
conduct.
The role of the audit committee is to prepare matters
for consideration by the Board, to support the Board
in its supervisory responsibilities and to ensure
that the requirements made of the company in
connection with its listing on the stock exchange are
complied with.
The committee consists of two shareholder-elected
board members and one employee-elected board
member. The independent auditor usually attends
the meetings. During 2021 there were 5 audit
committee meetings.
Members of the Audit Committee:
• Espen Gundersen, voted chair of the audit
committee and re- elected until the Annual
General Meeting in 2022
• Christian Jebsen, re-elected until the Annual
General Meeting in 2022
• Tanja Rørheim, re-elected by and among the
employees
93ANNUAL REPORT 2021
CORPORATE GOVERNANCE
The board’s HR & remuneration committee
The HR & Remuneration Committee is appointed
by Kitron ASA’s board of directors and is a sub-
committee of the Board. The committee consists of
three members elected among the members of the
board.
The HR & Remuneration committee will on behalf
of the board supervise remuneration and incentive
schemes, mainly related to the CEO and the Corporate
Management Team (CMT). The committee will
oversee the company’s management succession
plan as well as the company’s talent management.
During 2021 there were 4 remuneration committee
meetings.
Members of the Remuneration Committee:
• Tuomo Lähdesmäki, voted chair of the
remuneration committee and re-elected until the
Annual General Meeting in 2022
• Gro Brækken, re-elected until the Annual General
Meeting in 2022
• Maalfrid Brath, re-elected until the Annual
General Meeting in 2022
• Petra Grandinson, elected until the Annual
General Meeting in 2022
10. Risk management and internal control
Kitron’s business model is to provide manufacturing
and assembly of electronics and industrial products
containing electronics, including development,
industrialisation, purchasing, logistics, maintenance/
repair and redesign. The board sees no unusual risks
beyond normal business risks that any light industry
operation is exposed to.
EMS is a highly competitive industry, presenting the
company with an inherent business risk related to
Kitron’s ability, rstly, to attract and retain customers
who are and who will be predictable and successful
in their respective markets and, secondly, to make
a fair prot margin on its business. The group’s
customer portfolio consists of reputable companies
operating in various segments. Several of the group’s
customers are world leaders in their respective elds.
It is Kitron’s perception that the customer portfolio is
robust and well balanced. Kitron’s value proposition
to its customers includes exibility, competence,
quality, closeness and full value chain capability. The
board is condent that Kitron can maintain a viable,
leading and adaptive business. Kitron is organised in
distinct manufacturing sites, each fully accountable
for its own revenues, protability and level of capital
employed. The structure facilitates closeness
between management and the operation, which in
turn provides good overview and adequate internal
business control.
The group has established a decentralised
management model featuring delegated
responsibility for prots. As a result, the control
function parallels the group’s management model,
and it is the individual unit’s responsibility to make
sure that it has the capacity and expertise it requires
to carry out responsible internal control. Governing
management documents have been adopted,
describing the group’s requirements for responsible
internal control.
Management prepares monthly nancial reports
that are sent to the Board of Directors. When
the group’s quarterly nancial reports are to be
presented, the Audit Committee reviews the reports
prior to the board meeting. The auditor participates
in the Audit Committee meetings, and meets with
the entire Board in connection with the presentation
of the annual nancial statements.
The Board annually reviews the strategic plan. In
addition, as part of the preparation to the strategic
discussion, the Board also annually review the group
risks. The group’s nancial position and risks are
described in the Board of Directors’ Report.
The health, safety, and environmental risks are limited
and well managed, and Kitron’s ISO quality systems
are certied by certication agencies , inspected and
approved by several of the group’s customers.
Kitron’s customers are professional product-owning
companies, which purchase the manufacturing and
related services from Kitron. Kitron is not the product
owner and the group’s product liability risk are thus
negligible.
The Board regularly reviews and amends the Group’s
key Governance documents. The group’s current
Ethical Code of Conduct was approved by the Board
on 8 October 2018. Combined with Kitron’s Supplier
Code of Conduct and Anti-Corruption policy, this
forms the ethical guidelines for the group’s business.
Kitron has established routines for notication and
follow-up on any alleged misconduct.
94ANNUAL REPORT 2021
KITRON IN BRIEF
The Group has an Ethical Committee whose
task it is, on behalf of the management, to review
Governance documents, decide and/or advise in
Ethical dilemmas and conduct risk analysis and
implement relevant actions.
11. Remuneration of the board of directors
The Annual General Meeting approves the
remuneration paid to the Board of Directors each
year. The Proposal for the remuneration is made by
the Chair of the Nominating committee.
The remuneration of the board members reects
responsibility, expertise, time spent and the character
of Kitron’s business. The remuneration is not linked
to the company’s performance or share price.
The remuneration to the chairman is determined
separately from the other members. Additional
remuneration is made to the members of the board
who are appointed to board committees, on a per
meeting basis.
Board members are not encouraged to perform
special assignments for the company in addition
to their directorship. Such assignments, if any, are
reported to the full board and disclosed in the annual
report.
Information about each director’s remuneration,
including shares and subscription rights, is provided
in the notes to the annual nancial statements.
The members of the Board are encouraged to own
shares in Kitron.
12. Remuneration of senior executives
The Norwegian Public Limited Liability Companies
Act established guidelines for the remuneration of the
CEO and other senior executives of the company. The
remuneration guidelines have been approved by the
general meeting. The remuneration guidelines shall
be clear and understandable, and shall contribute to
Kitron’s business strategy, long-term interests and
nancial sustainability. The arrangements for salary
and other remuneration shall be simple and shall
ensure convergence of the nancial interests of the
senior executives and shareholders.
The remunerations consist of xed annual
compensation that includes annual base salary
and other possible benets (such as pension plan).
The total possible compensation also includes a
short- term incentive scheme (STI) and a long-term
incentive scheme (LTI).
Performance-related remuneration of the executive
personnel in the form of share options, bonus
programs or the like should be linked to value
creation for shareholders or the company’s earnings
performance over time. Such arrangements,
including share option arrangements, should
incentivise performance and be based on quantiable
factors over which the employee in question can
have inuence. Performance-related remuneration
should be subject to an absolute limit.
Fixed compensation
The actual level of annual base salaries (ABS) is
based on market conditions and salary levels related
to the actual position in the country in question.
Kitron uses the Hay tool for determining market
levels on an annual basis. The executive positions
are evaluated using the Hay positioning grading tool.
Pension plans, based on dened contribution plans,
are in place following the practice and regulations
in each country. Other benets are according to
company policy and regulations in country of
residence.
The Board may grant specic purpose bonuses to
members of the senior executive management.
Short term incentive scheme
The STI system has specic targets and dened
maximum pay-outs and is set on annual basis.
The possible maximum pay-out is85 per cent of
annual basic salary. The STI system is based on
performance of Revenue growth, EBIT and Return
on Operating capital (ROOC).
Long-term incentive scheme
The LTI system was established in 2013 as an
option-based program with a three-year validity
(2013-2016), and in 2015 the Board continued the
share option program for executive management for
another three-year period (2016-2019).
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 subprograms, each with an allocation
of 1 250 000 option, where the rst program started in
2019, followed by one program every year until 2023.
95ANNUAL REPORT 2021
KITRON IN BRIEF
The total program corresponds to approximately 3
per cent of the market capitalization
Separate agreements describing the LTI systems
and related conditions are in place for each senior
executive. Maximum possible share options are
dened per individual among the senior executives.
Any possible pay-out will be depending on the Kitron
group share price at the start of the program in
comparison with the share price at the time of the
expiry.
A more detailed description is provided in note 19 in
the Consolidated Financial statements.
Kitron reports all forms of remuneration received by
the chief executive and each of the other members
of the executive management.
Details about remuneration of the executive
management are provided in a separate Remun-
eration Report available at kitron.com and in note 27
in the Consolidated Financial statements.
13. Information and communication
Kitron wants to maintain good communication
with its shareholders and other stakeholders. The
information practice is based on openness and
will help to ensure that Kitron’s shareholders and
other stakeholders are able to make a realistic
assessment of the company and its prospects.
Guidelines have been established to ensure a
ow of relevant and reliable nancial and other
information. The group endeavour to ensure that
all shareholders have equal access to the same
information. Kitron complies with Oslo Børs’ Code
of Practice for IR, dated 1 July 2019.
All information distributed to the shareholders is
published on Kitron’s website (www.kitron.com)
at the same time as it is sent to the shareholders.
Furthermore, all announcements to the market are
posted on Kitron’s website following publication
in Oslo Børs’ company disclosure system www.
newsweb.oslobors.no, ticker: KIT. Public, webcast
presentations are held quarterly in connection with
the interim reporting. Kitron presents a nancial
calendar every year with dates for important events.
Kitron’s guidelines for reporting of nancial and other
information as well as guidelines for the company’s
contact with shareholders, other than through the
general meeting, are presented in the shareholder
information section in the annual report.
Kitron operates in accordance with a set of nancial
targets, established by the board of directors. These
targets govern the Group’s operations within the
nancial year. The targets which Kitron give annual
guiding on are:
Revenue, EBIT margin;
The aim is to communicate the targets for the
nancial year in connection with either the Q4, the
annual report, or later as soon as they are approved
by the board of directors.
Kitron emphasises that the target by their very nature
necessarily involves assumptions and uncertainty.
14. Takeovers
There are no defence mechanisms against take-
over bids in the Company’s Articles of Association,
nor have other measures been implemented to
specically hinder acquisitions of shares in the
Company.
The Kitron Board has established guiding principles
in respect of take-over bids.
In a bid situation, the Board and management
have an independent responsibility to help ensure
that shareholders are treated equally, and that the
Company’s business activities are not disrupted
unnecessarily. The Board has a particular
responsibility to ensure that shareholders are given
sucient information and time to form a view of the
offer.
The Board should not hinder or obstruct the possibility
of having take-over bids for the Company’s activities
or shares.
The Board should actively seek other offers upon
the receipt of a take-over bid if considered to be in
the best common interest of the Company and its
shareholders.
Agreements entered between the Company and the
bidder, or signicant terms and conditions thereof,
that are material to the market’s evaluation of the bid
shall be publicly disclosed no later than at the same
time as the announcement that the bid will be made
is published.
96ANNUAL REPORT 2021
CORPORATE GOVERNANCE
In the event of a take-over bid for the Company’s
shares, the Board should not exercise mandates or
pass any resolutions with the intention or effect of
a disposal of the Company’s activities, or material
parts thereof, or otherwise obstructing the take-over
bid unless this is approved by the general meeting
following announcement of the bid.
The Board and management shall refrain from
implementing any measures intended to protect their
personal interests at the expense of the interests of
shareholders following an intention to make a take-
over bid or announcement of a bid.
If an offer is made for the Company’s shares, the Board
shall issue a statement making a recommendation
as to whether shareholders should or should not
accept the offer. The Board’s statement on the offer
should make it clear whether the views expressed
are unanimous, and if this is not the case it should
explain the basis on which specic members of the
board have excluded themselves from the Board’s
statement. The statement shall include information
as set out in section 6-16 of the Securities Act.
The Board should arrange for a valuation of
the Company from an independent expert. The
valuation should include an explanation and shall be
made public no later than at the time of the public
disclosure of the Board’s statement.
15. Auditor
The Group’s auditor is elected by the General
Meeting.
The auditor participates in the meetings of the
Audit Committee, to whom they present the main
features of the plan for the audit. The auditor also
conducts a review of the company’s internal control
procedures, including identied weaknesses and
improvement proposals, which are presented to the
Audit Committee.
The auditor always participates in the meeting of the
Board that deals with the annual nancial statements.
In this meeting the auditor discusses any changes to
the accounting principles, comments on any material
estimated gures and reports any material matters
where there has been a disagreement between the
auditors and the executive management.
The Board and the auditor will meet at least once a
year without the CEO or any other members of the
executive management present.
The auditor issues a written conrmation to the
Board on compliance with the Statutory Audit
Independence and Objectivity Requirements.
The Board of Kitron has established guidelines in
respect of the use of the auditor by the company’s
executive management for services other than
mandatory audit.
The auditor annually provides the board with a
summary of all services that have been undertaken
for Kitron for the accounting year. The fees paid
for audit work and fees paid for other specic
assignments are specied in the notes to the
nancial statements.
PwC has been the company’s auditor since 2005.
97ANNUAL REPORT 2021
CORPORATE GOVERNANCE
98ANNUAL REPORT 2021
KITRON IN BRIEF
SUSTAINABILITY REPORT 2021
99ANNUAL REPORT 2021
SUSTAINABILITY REPORT
Message from our CEO 100
About this report 102
Our sustainability ambition 104
Kitron supports the UN’s sustainable development goals 105
EU’s taxonomy for sustainable activities 105
Reporting on material topics 108
100ANNUAL REPORT 2021
SUSTAINABILITY REPORT
MESSAGE FROM OUR CEO
101ANNUAL REPORT 2021
As a leading electronics manufacturing services
company with operations in nine countries, Kitron is
mindful of our direct and indirect economic, social
and environmental impact on our surroundings and
stakeholders.
This report outlines Kitron’s sustainability work,
which is based on the Kitron Ethical Code of
Conduct, Kitron Suppliers Code of Conduct and
Kitron Anti-Corruption Policy. The report is prepared
in accordance with the Oslo Stock Exchange
Guidelines for Sustainability Reporting and Euronext
Guidelines to issuers for ESG reporting. We are a
UN Global Compact Signatory and support the UN
Sustainable Development Goals.
In this report, which is also our annual Communication
on Progress, we describe our actions to continually
improve the integration of the Global Compact and
its principles into our business strategy, culture and
daily operations. We also commit to sharing this
information with our stakeholders using our primary
channels of communication.
We are committed to making the UN Global Compact
and its principles part of the strategy, culture and day-
to-day operations of our company and to engaging
in collaborative projects which advance the broader
development goals of the United Nations, particularly
these Sustainable Development Goals:
• 5 Gender Equality and women’s empowerment
• 9 Build resilient infrastructure, promote
sustainable industrialization and foster
innovation
• 12 Responsible consumption and production
• 13 Climate change
We also strive to engage on sustainability topics
beyond our direct value chain. I am pleased to
conrm that Kitron ASA rearms its support of the
Ten Principles of the United Nations Global Compact
in the areas of Human Rights, Labour, Environment
and Anti-Corruption.
The company has set long-term goals and
ambitions for its sustainability work, with clearly
dened milestones for the short, medium and long-
term work on environmental, social and governance
topics.
In 2021, we started a TCFD climate risk process and
created a roadmap for how the company will work
on climate risk going forward.
Improving data quality and implementing digitalized
reporting on KPIs for our internal work is also of
continued importance. Kitron has established an
internal scorecard for all our locations, reporting
quarterly on KPI progress.
Kitron has been monitoring the latest developments
in the EU Taxonomy and analysed the group’s
activities in light of the Taxonomy criteria.
At Kitron, we believe that running a sustainable
business is key to long-term success, and we hope
this report illustrates our efforts and commitments
in this area.
Lars Peter Nilsson
SUSTAINABILITY REPORT
102ANNUAL REPORT 2021
SUSTAINABILITY REPORT
For information about this report and its content,
please contact Kitron ASA CFO Cathrin Nylander.
This report is prepared for Kitron ASA in accordance
with The Oslo Stock Exchange Guidelines for
Sustainability Reporting and Euronext Guidelines
to issuers for ESG reporting from 2020.
The Sustainability report has been reviewed and
approved by the Board. The claims and data in this
report has not been audited by a third-party.
About Kitron ASA
Kitron is a leading Scandinavian Electronics
Manufacturing Services (EMS) company with
operations in Norway, Sweden, Denmark,
Lithuania, Germany, Poland, the Czech Republic,
China and the United States. Kitron manufactures
and delivers anything from fully assembled
electronic circuit boards to complete end products
for customers globally.
Related technical services like prototyping,
industrialization, material analysing, and test
development are also key competencies offered
by Kitron. In addition, Kitron is currently developing
expertise in Automotive Electronics with a special
focus on Autonomous Technologies.
Kitron is an ASA company listed on the Oslo Stock
Exchange (ticker: KIT).
Economic impact and tax information
Kitron creates value in countries in which we
operate, directly through the payment of direct
and indirect taxes, the payment of dividends to
owners and wages to employees, and indirectly by
buying goods and services from suppliers.
Kitron impacts a large number of stakeholders,
many of them directly or indirectly involved in
Kitron’s value creation. Below is an overview of the
values Kitron creates and the main stakeholders.
Payroll and social security expenses 2021
In 2021, labour costs amounted to 719.1 million
(NOK 671.4 million) Payroll and social security
expenses accounted for 19.4 (16.9) per cent of
sales revenue.
Procurement of goods and services
Kitron purchased goods and services valued at
roughly NOK 2654.0 million (2871.1 million) in
2021.
Tax
The Group’s tax expenses for 2021 came to NOK
51.3 million (NOK 61.0) million.
NOK million 2019 2020 2021
Norway 3.0 10.1 10.6
Sweden 8.3 9.6 11.6
Lithuania 11.3 12.0 12.0
Other 14.5 29.3 17.1
Total 37.1 61.0 51.3
Table 1: Tax expense by country
ABOUT THIS REPORT
103ANNUAL REPORT 2021
SUSTAINABILITY REPORT
Sectors served
Kitron’s core areas of expertise have over the past
years been divided into in the sectors Connectivity,
Electrication, Industry, Medical devices, Defence/
Aerospace.
From 2021 these sectors are adjusted to better
reect market changes and growth outlook.
Medical Devices and Defence/ Aerospace are
unchanged, and the other sectors are re-arranged
into Connectivity and Electrication and Industry.
21% 12%
26%
17%
24%
Connectivity
Electrication
Industry
Medical devices
Defence & Aerospace
Figure 3: Revenue per
market sector 2021
104ANNUAL REPORT 2021
SUSTAINABILITY REPORT
We believe responsible and sustainable business
is the future and provides added value for our
customers. The foundation of our work for
sustainability and corporate responsibility is
enshrined in our Ethical Code of Conduct. It
obliges us to not only look after the well-being
of our employees, stakeholders, suppliers, and
business partners but also reduce the impact
of our business on the environment and the
societies around us. Our focus areas are based on
stakeholder dialogue and materiality assessment,
to ensure we put our effort where it makes a
difference for our stakeholders and our business
impact. Therefore, we are proud to be a UN
Global Compact Signatory and support the UN
Sustainable Development Goals.
This report covers topics related to corporate
responsibility and sustainability that are of
importance to Kitron and Kitron stakeholders. Our
approach to sustainability reporting is based on
the materiality assessment undertaken in 2017
according to the Oslo Stock Exchange Guidelines
on Sustainability Reporting. It is the cornerstone of
our sustainability efforts, allowing us to create an
impactful climate action. Kitron shall comply with
applicable laws and regulations, respect human
rights and act in a socially responsible manner.
Our business activities and internal operations
are conducted with a high level of integrity and
with a clear ambition to be a socially responsible
company acting ethically and lawfully in all aspects
of our value chain.
Figure 4: Kitron’s supply chain
Quality standards
Thanks to our long history of satisfying a world of
demanding customers, we take pride in delivering
the quality best suited for the customer’s needs.
Our quality management includes effective
systems, documented improvement programs
and risk management tools. Since the early 60’s
Kitron has lived by a simple philosophy: If our
customers succeed, we succeed.
That is why our sites are certied according
to the following internationally agreed quality
management standards:
• ISO 9001:2015
• ISO 14001:2015
• EN9100:2018 (Technically equivalent to
AS9100D and JISQ 9100:2016)
• ISO/TS 22163
• ISO 13485:2016
• 21 CFR 820 Quality System Regulation
• AQAP 2110 Edition D Version 1
OUR SUSTAINABILITY AMBITION
Mine End-user
Product
end-of-life
System
assembly
Component
manufacturing
Traders &
exchanges
Reners &
smelters
105ANNUAL REPORT 2021
SUSTAINABILITY REPORT
Sustainability is anchored in the core of our
business. That is why Kitron supports the UN
Sustainable Development Goals - an urgent
call for action by all countries, businesses and
communities to unite and end poverty and
inequality. The UN has dened 17 Sustainable
Development Goals the world should resolve by
2030. Several of these goals can only be achieved
by acting on responsible supply chain practices
and ethical business initiatives.
The UN Sustainable Development Goals are an
urgent call for action by all countries - developed and
developing - in a global partnership. They recognize
that ending poverty and other deprivations must
go hand-in-hand with strategies that improve
health and education, reduce inequality, and spur
economic growth – all while tackling climate
change and working to preserve our oceans and
forests. The UN Sustainable Development Goals
have become a global framework for sustainability
efforts, and an important part of the sustainability
context for Kitron.
For us, it shows how our complex global value
chain is affected by and affects these global
challenges. We have identied which of the 17
goals are most relevant to Kitron, where we can
make a difference towards achieving the goal
and how they are linked to our material topics.
By supporting the UN SDGs, we hope we can
contribute to improving the societies we all live in.
Our main contributions are focused on the
following goals.
• 5 Gender Equality and women’s
empowerment
• 9 Build resilient infrastructure, promote
sustainable industrialization and foster
innovation
• 12 Responsible consumption and production
• 13 Climate change
EU’s Taxonomy for sustainable activities
The EU taxonomy is a classication system,
establishing a list of environmentally sustainable
economic activities. It could play an important
role help the EU scale up sustainable investment
and implement the European green deal. The EU
taxonomy would provide companies, investors
and policymakers with appropriate denitions
for which economic activities can be considered
environmentally sustainable.
A sustainable activity is dened as one that
substantially contributes to at least one of a
dened set of six environmental objectives, does
not signicantly harm any of the other objectives,
while at the same time complies with social
safeguards.
Kitron has been monitoring the process and
analysed the group’s activities in light of the
Taxonomy criteria.
As Kitron manufactures products for customers
within several industries, there will be a mix of
some revenue being aligned with the Taxonomy
criteria and some not being aligned.
Therefor, the % aligned might vary based on the
mix of products sold.
A preliminary estimate indicates that about 23
percent of revenues in 2021 were aligned. This
percentage is slightly up from 2020, when it was
20 percent.
Corporate Governance
Kitron shall comply with applicable laws and
regulations, respect human rights and act in a
socially responsible manner. Kitron’s business
activities and internal operations are conducted
with a high level of integrity and with a clear
ambition to be a responsible company acting
ethically and lawfully in all aspects of our
value chain. Kitron’s corporate governance
structure shall ensure a systematic approach to
sustainability and corporate responsibility.
Management approach
Kitron’s general system of governance is linked
to the Norwegian Code of Practice for Corporate
Governance (NUES).
Annual General Meeting (AGM)
The Annual General Meeting (AGM) is the Kitron
Group’s supreme governing body and where the
shareholders can inuence how sustainability is
practiced.
KITRON SUPPORTS THE UN’S SUSTAINABLE DEVELOPMENT GOALS
106ANNUAL REPORT 2021
SUSTAINABILITY REPORT
The Board of Directors
The Group Board of Directors bears the ultimate
responsibility for Kitron’s Sustainability and the
report on Sustainability is discussed and approved
by the Board.
Corporate Executive Management
Corporate Executive Management bears
the responsibility for the Group’s strategy,
development and day-to-day work. This means
Corporate Executive Management is responsible
for compliance with legislation and regulations
and our Ethical Code of Conduct, as well as for
the implementation of appropriate and effective
initiatives to ensure that we reach our goals.
The Sites
The business areas are responsible for follow up
and compliance with policy, strategy, targets and
governance documents related to sustainability.
The day-to-day work with corporate responsibility
and environmental management is usually
handled by the sites with support from the
Corporate Executive Management.
Ethics Committee
Kitron Ethics Committee’s mandate is to review
and suggest updates of guidelines, decide and/
or advise in ethical dilemmas, conduct risk
analysis and implement relevant actions and
make periodical reviews. The Ethics Committee
consists of members of the Corporate Executive
Management and Corporate Staff.
Kitron’s Stakeholders
Owners
Kitron’s owners are primary stakeholders and
directly affect the company’s priorities and
strategic direction.
Employees
Kitron employees are directly affected by Kitron’s
internal policies and activities.
Suppliers
Kitron’s suppliers are economically affected by
the company, and their responsibility is indirectly
affected by Kitron’s focus on responsible practices
and the expectations placed on them by Kitron.
Customers
Kitron’s customers directly affect the company
economically, and customer expectations
inuence Kitron’s sustainability priorities.
Civil Society
Civil society like governments and regulatory
authorities affect Kitron and its operating conditions
directly and indirectly. Local communities
are indirectly socially, environmentally and
economically affected by Kitron’s activities such
as job creation, contribution to local value creation
and environmental impacts.
See appendix 1 for complete list of stakeholders
and arenas for dialogue.
Figure 5: Kitron’s stakeholders
Suppliers Civil society
Employees
Investors
Customers Authorities
107ANNUAL REPORT 2021
SUSTAINABILITY REPORT
Stakeholder Dialogue
To ensure a strategic approach to sustainability
reporting and to adhere to the intent of the
Euronext Guidelines to issuers for ESG reporting,
Kitron has undertaken systematic stakeholder
dialogue in 2017 and keeps an ongoing dialogue
with key stakeholder groups.
Kitron’s ongoing conversation with its most relevant
stakeholders strengthens its relationship with
the society in which it operates. The stakeholder
dialogue also benets the company by allowing
Kitron to detect, investigate and manage potential
risks arising in its immediate surroundings.
In 2017 Kitron invited key stakeholders to give
their view on the key sustainability issues and how
they perceive Kitron and its relevant sustainability
topics. This was done by interviews, electronic
surveys, and direct contact with employees,
customers and suppliers. The ndings from
the stakeholder dialogue were gathered and
structured for discussion in Kitron’s Sustainability
task force and used as groundwork for the
materiality assessment.
The stakeholder dialogue is both a means and an
end, as ongoing systematic stakeholder dialogue
is a key objective in the Euronext Guidelines to
issuers for ESG reporting and GRI Standards.
The ndings from the stakeholder dialogue will be
continuously incorporated into the sustainability
strategy and will guide Kitron’s priorities in the
materiality assessment.
The materiality assessment
Sustainability begins in the everyday work we
do, adding value to the impact we have on our
surroundings. This impact comes with great
responsibility and requires that Kitron is in ongoing
dialogue with our stakeholders and constantly
strives to deliver quality products while adhering
to the highest possible ethical standard.
As a result, The materiality assessment was
established in 2017 by the internal task force on
sustainability based on the stakeholder dialogue
and information gathering about where we have
the most impact on the environment and the
societies in which we operate. The main goal of
the materiality assessment is to establish key
reporting topics for Kitron, reecting the key risks
and opportunities created by Kitron’s business
activities. Further, these topics are included in
the Kitron Sustainability report, describing how
the most important topics are included in general
risk management and strategy process and
the measures Kitron is taking to reduce risks
associated with material issues and how these
are integrated into operational management and
corporate governance.
The materiality assessment concluded the
following 4 core areas and 6 materials topics for
Kitron to report on:
• Business ethics
• Ethics and anti-corruption
• Labour and human rights
• Workers’ rights, diversity and non-
discrimination
• HSE, safety and security
• Environment and climate
• Responsible value chain
• Supply chain and quality
• Human rights and conict minerals
Figure 6: Materiality assesment, Kitron’s business impact
Taxes
Kitron’s Business Impact
Material topics for Kitron ASA
Importance to stakeholders
Waste &
pollution
prevention
Energy use
Chemical
use
Hazardous
substances
Local value
creation
Job
creation
Conflict
minerals
HSSE
Human
rights
Diversity and
discrimination
Ethics
Anti-
corruption
Workerś
rights
Quality
Cyber and
information
security
108ANNUAL REPORT 2021
SUSTAINABILITY REPORT
Business ethics
We continuously strive to be an ethical and
responsible company. Our Ethical Code of Conduct
presents Kitron’s obligation and commitment
to ethical business practices and describes
the standards and requirements which Kitron
employees must adhere to in their work.
The Ethical Code of Conduct provides a framework
to ensure that Kitron complies with relevant local
and international legislation, acts in accordance
with internal policies and the company’s values
and supports the UN’s initiatives on human rights,
children rights and labour conventions.
Our priorities and progress
Figure 7: Summary table of topics, goals and targets
REPORTING ON MATERIAL TOPICS
The challenge +
relevant SDG
Ambition
Long-term targets
(2030)
Key KPIs monitored Results 2021 Targets 2022
Zero incidents of
corruption
• Corporate
governance
• Corruption
and bribery
prevention
• Information
security
• Annual Ethics
and corruption
awareness
trainings was
assigned
to 1696 of
1940 active
employees in
2021.
• 79,5% of
employees that
was assigned
the training, has
completed and
passed.
• 100% of
employees
shall be
assigned the
training.
• 90% shall
complete and
pass.
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The Ethical Code of Conduct is complemented
by the Kitron Anti-Corruption Policy, which details
and explains Kitron’s requirements for proper
business conduct in relation to anti-corruption.
Kitron has also developed a separate Supplier
Code of Conduct that applies to Kitron’s suppliers.
Kitron has also developed a separate Supplier
Code of Conduct that applies to Kitron’s suppliers.
Business ethics and corruption prevention
Kitron opposes any form for corruption and
strives to prevent corruption in and as a result of
Kitron’s business activities. Kitron Ethical Code
of Conduct clearly expresses Kitron’s obligation
and commitment to ethical business practices
authorities.
Ethical Code of Conduct
Ethical Code of Conduct is essential for a
sustainable business, and we treat ethics as an
integral part of our activities. The Kitron Ethical
Code of Conduct presents Kitron’s obligation
and commitment to ethical business practices
and describes the standards and requirements
that Kitron employees must adhere to in their
work. The current version of the was revised and
approved by the Board of Directors and published
on December 21st, 2018. The Code applies
to all Kitron board members, elected ocers,
permanent and temporary employees, hired staff,
consultants and agents acting in or on behalf of
Kitron. The Code also applies to all contractors,
sub-contractors, suppliers and sub-suppliers. It
includes all companies in the Kitron group.
Our work on anti-corruption
Kitron is directly affected by corruption risk in our
operations and indirectly affected by corruption
risk through business relationships and our
supply chain. Kitron has operations in industries
and countries that are particularly susceptible to
the risk of corruption. Kitron also does business in
countries known for having problems associated
with human rights, child labour and environmental
pollution.
We are aware that this presents challenges
regarding our sustainability, and that it can subject
us to substantial nancial risk. To deal with our
sustainability and minimize our nancial risk, we
work systematically on Ethics and Anti-corruption.
Kitron Ethical Code of Conduct describes several
areas of importance for preventing corruption.
Kitron’s Anti-Corruption Policy clearly describes
Kitron’s work on anti-corruption, including risk
analysis, monitoring, responsibilities, follow-up
and training.
Kitron is aware that suppliers, customers and
other relevant business partners, such as
acquisition targets or agents might expose
Kitron to corruption risks. To reduce the risks,
Kitron has introduced routines for a risk-based
evaluation before entering such relationships. The
Kitron Suppliers Code of Conduct also denes
Kitron’s expectations regarding the suppliers’
anti-corruption activities. Kitron also has in-
house rules for gifts and representation as well as
sponsorships. All of this must be recognized as a
basic requirement for doing business with Kitron.
Kitron is aware that suppliers, customers and
other relevant business partners, such as
acquisition targets or agents might expose
Kitron to corruption risks. To reduce the risks,
Kitron has introduced routines for a risk-based
evaluation before entering such relationships. The
Kitron Suppliers Code of Conduct also denes
Kitron’s expectations regarding the suppliers’
anti-corruption activities. Kitron also has in-
house rules for gifts and representation as well as
sponsorships. All of this must be recognized as a
basic requirement for doing business with Kitron.
Share of suppliers per risk
category
2019 2020 2021
Very low risk 28.5% 32.2% 34.00%
Low risk 26.5% 23.3% 24.42%
Moderate risk 44.9% 44.4% 41.56%
Increased risk 0.1% 0.1% 0.02%
Table 6: Supplier risk assessment results per risk category
110ANNUAL REPORT 2021
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Risk assessment
Kitron operates in countries and in lines of
business that are susceptible to corruption, and
Kitron is also indirectly subject to corruption risk
and bribery risks through business relationships.
To reduce risk, Kitron does not use agents or
market representatives, as it constitutes a high
risk for corruption.
Every year, Kitron conducts a Corruption and Risk
of Bribery assessment on its existing suppliers.
Active inventory suppliers and non-inventory
suppliers are screened for corruption and bribery
risk. Moreover, since 2019 all new suppliers are
screened for corruption and bribery risk as part of
the onboarding process.
Ethics training
We aim to ensure that our employees develop
along with the development of our business. All
Kitron personnel are required to attend periodic
training in the Kitron Ethical Code of Conduct to
ensure that Kitron’s ethical values are understood
and implemented at all levels. In Kitron, the Ethical
Code of Conduct is available as an online training
in 6 different languages.
Ethics Committee
Kitron has set up an Ethics Committee whose
objective is to ensure that Kitron maintains a
high-level focus on issues related to ethics and
anti-corruption and a common understanding
and practice regarding how to best address and
follow-up on these issues.
Firstly, the Committee oversees the policy
document itself and reviews or updates of the Kitron
Ethical Code of Conduct. Secondly, the committee
is an advisory board related to ethical dilemmas
or questions from managers and employees in the
group on dicult borderline issues. It is also in the
main scope of the committee to perform regular
ethical audits mainly related to anti-corruption.
The Ethics Committee meets as needed but
at least three times a year. Head of the Ethics
Committee reports to CEO who in turn reports
to the board of Kitron ASA. The Chairman of the
Ethics Committee has a direct reporting line to the
Audit Committee of the Board.
Reporting irregularities
Kitron’s goal is that illegal, unethical, or other
misconduct and breach of EU law as described
in Directive (EU) 2019/1937, known as the
“Whistleblower Directive”, should not occur. If they
do, they must be handled properly in accordance
with the directive, supplemented by local law.
Examples of concerns related to Kitron’s business
practices that may be reported include allegations
such as:
• Violations of Kitron’s Ethical Code of Conduct
• Violation of corruption laws
• Insider trading
• Conict of interest
• Sexual harassment or other forms of
harassment or discrimination
• Threats against life and health, e.g., safety
deciencies at the workplace, violence and
exposure or interaction with dangerous
materials etc.
Kitron staff have the right and duty to report any
criminal acts, harassment, discrimination or
circumstances where life or health might be in
danger. As a main rule, a report shall be made to
the immediate superior. Environmental/workplace
safety related matters can be reported to HSE
Manager or the Company Health Service, Financial
matters can be reported to the Finance Manager.
Kitron also has its own contact persons for internal
reports which for all Kitron sites are the Managing
Director, the HR Manager and the (main) employee
representative (if applicable) for the site (jointly
referred to as the “Local Reporting Contacts”).
If the worker does not obtain any appropriate
response or reaction or does not feel comfortable
reporting the matter to the immediate superior
or persons as set above, the worker can choose
Number of cases 2019 2020 2021
Reported 0 2 0
Sanctioned 0 1 0
Table 7: Number of reported potential corruption cases and number of sanctioned cases
111ANNUAL REPORT 2021
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to report directly to the Chairman of the Ethics
Committee. Should the worker not be comfortable
reporting to anyone in Kitron management, the
worker may report to the Chairman of the Audit
Committee for Kitron ASA.
Kitron has a safe system, IntegrityLog, for reporting
in a manner that ensures the condentiality of the
reporting person and any other party mentioned
in the report. Reports can be made anonymous, or
workers can safely use their own identity.
Employees that report in good faith shall be
protected against any adverse treatment
(retaliation).
In 2021 the Ethics Committee received x reports of
potential misconduct. Kitron is not in and has not
been in any legal proceedings related to business
ethics in 2021.
Information and cyber security
Information security
Kitron employees have a duty of condentiality
in respect to all business matters and situations
that could give unauthorized people access to
condential information. All information not made
public is to be considered condential.
Kitron has set up an organizational structure
to handle the tasks required by the GDPR. The
structure is described in the Personal Data
Protection Policy for Kitron and consist of a
Personal Data Protection Committee, a Corporate
Data Protection Representative in addition to local
Data Protection Representatives in all European
countries.
Cyber security
Kitron has clear requirements for cyber security
commitments. The company is NIST 800-171
compliant and is preparing to be CyberSecurity
Maturity Model Certication (CMMC) certied.
The standards require several cyber security
controls, procedures and processes as well as
physical protection. Procedures includes intrusion
tests, cyber security attack simulation exercises,
IT risk analysis to name a few. The company has
an IT charter and IT risks are presented annually to
the management.
The challenge +
relevant SDG
Ambition
Long-term targets
(2030)
Key KPIs monitored Results 2021 Targets 2022
The working
environment
in Kitron is
characterized
by openness,
communication,
and respect for the
individual. Diversity,
and a balanced
work force in
terms of gender,
is recognized as
strength and an
advantage.
• Zero accidents.
• 40% women
across all levels
of the Kitron
organization
• >90% of
employees
saying Kitron
is a great
workplace
• Gender equality
• Worker’s
rights, diversity
and non-
discrimination
• HSE, safety and
security
• Decreased
number of lost
time injuries
• Maintained
or decreased
employee
turnover by site
for sites with
turnover over
10%
• Increased
availability of
trainings in
Kitron academy
74% of employees
saying Kitron is a
great workplace
Labour and human rights
At Kitron, we want the working environment to be
characterized by openness, communication and
respect for the individual.
112ANNUAL REPORT 2021
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2020 2021
Average pay direct
women % of men
Average pay indirect
women % of men
Average pay direct
women % of men
Average pay indirect
women % of men
Norway 87 % 89 % 86 % 84 %
Sweden 100 % 93 % 98 % 101 %
Lithuania 74 % 83 % 78 % 81 %
Poland 100 % 71 % 101 % 78 %
China 100 % 46 % 100 % 49 %
US 86 % 82 % 82 % 50 %
Average pay. total 58,9 % 62,5 %
Table 8: Women’s percentage of men’s pay
The indirect workforce includes roles with signicant difference in responsibility and pay. The Pay only
depends on roles and responsibilities not gender. We aim for an improved gender distribution across the
positions and countries.
The Ethics Committee has received one concern regarding working environment. Investigations have been
conducted and resulted in actions; the case is considered closed.
Kitron participates in the Great Place to Work survey. Annually, results are analysed, and action plans
developed and implemented. We have made several improvements based on the previous surveys. It shows
that our company’s culture is moving forward.
The Great Place to Work® survey will continue to be the foundation for the continuous improvement of our
working environment.
Based on the Norwegian Activity Duty for employers (Aktivitets- og redegjørelsesplikten, ARP), the company
is reporting the following employee data:
Location No. of employees 2020
Payroll (NOK million)
2020
No. of employees 2021
Payroll (NOK million)
2021
Norway 347 263 368 285
Women 42 % 42 %
Men 58 % 58 %
Table 9: Permanent employees by gender, and payroll
Workers’ rights, diversity and non-discrimination
Diversity and a balanced work force in terms of
gender, is recognized as a strength and an advantage.
Fair employment practices following local norms,
laws and collective bargaining agreements is the
basic standard in all Kitron entities.
Health and safety in the working environment are very
important to Kitron and is to be ensured to provide
for each employee. Kitron opposes discrimination in
any form, e.g., due to race, nationality, gender, sexual
orientation or religion. Kitron also opposes any form
of tracking and purchase of sexual services. No
form of discrimination, harassment or bullying is
tolerated. We are here to offer a working environment
where it is possible to combine work, career, family
life and spare time.
113ANNUAL REPORT 2021
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2020 (as per 31.12) 2021 (as per 31.12)
Organisation Men Women Total Men Women Total
Number of permanent
employees
192 141 333 207 151 358
Temporarily hired 4 1 5 6 1 7
Part time employees 1 17 18 1 15 16
Newly hired
Total number of newly hired
employees in 2020
16 8 24 21 16 37
Employee turnover
Number of employees who
have left the company
5 4 9 6 1 7
Parental leave
Number of employees on
parental leave
6 0 6 9 2 11
Table 10: Part-time employees, turnover, and parental leave
2020 2021
Men Women Men Women
Organisation total 201 146 214 154
Board of Directors 5 4 5 4
Executive level management 4 1 3 1
Non-executive level management 16 2 17 3
Table 11: Breakdown of employees and board members by gender
2020 2021
Under 30 30-49 50+ Under 30 30-49 50+
Organisation
total
42 125 156 60 137 171
Board of
Directors
0 2 7 0 2 7
Executive level
management
0 2 3 0 1 3
Non-
executive level
management
0 6 12 0 7 13
Table 12: Breakdown of employees and board members by age
114ANNUAL REPORT 2021
SUSTAINABILITY REPORT
Career development and training
Kitron values the competences of employees, and
sharing knowledge and information is an area of
priority, as is on-the-job development. Individual
career and competence development are parts of
the current performance management process.
Kitron has implemented a digital learning
management system, LMS, to further strengthen
individual development and competence. In 2018,
the new digital learning platform, Kitron Academy,
was launched and work since continued to
supplement Kitron Academy with learning and
development activities. The work continues to
increase the number of available trainings and
track trainings within the digital platform.
In 2021, the number of training hours were 51 583
compared to 42 797 hours in 2020. The current
Covid situation have caused certain trainings to be
cancelled or shortened.
HSE, safety and security
Health and safety in the working environment are
very important to Kitron - we believe that prevention
is the key to a truly safe workplace. Kitron follows
local and international norms and relevant
legislation to provide such an environment.
Injuries and absence due to illness
Absence due to illness (as a percentage of total
hours worked) was 3.7 per cent for the group in
2021. This is a slight increase from previous years.
A good working environment and the possibility to
develop are important factors to keep the absence
due to illness at a low level. Going forward,
Kitron will continue the work to provide such an
environment for our employees.
Injuries and work-related accidents are registered
at site level. While the ambition of the company is
to have zero accidents, it is of critical importance
to have full overview of any incident or accidents
at any of the Kitron sites to be able to work
on prevention and ensure a healthy and safe
workplace. Reporting incidents and accidents
will be further streamlined across the sites
and handled through a digital tool. By improving
reporting routines, it is expected that the number
of incidents reported might increase temporary.
The Kitron work environment proposes risks to
the employees foremost in the manual mounting
and in the processes where chemical liquids,
nitrogen or lead is involved as well as the long-
term risks associated with repetitive tasks. The
most important mitigation and prevention of
accidents and injuries is the workplace design,
education of employees and routines for safely
handling chemicals.
All chemicals procured and applied at Kitron
sites are registered and handled according to
relevant regulations. To prevent negative effects
of repetitive tasks, all sites has implemented job
rotation for certain tasks. In 2021, there was no
serious work-related accidents at Kitron sites.
Kitron will continue to monitor the working
environment regarding employee health and
safety.
Absence and work-related injuries 2019 2020 2021
Absence due to illness 3.6 3.3 3.7
Number of fatal occupational injuries 0 0 0
Number of occupational injuries causing
permanent incapacity for work
0 0 0
Lost time injuries 15 13 14
Table 13: Absence and work-related injuries sanctioned cases
115ANNUAL REPORT 2021
KITRON IN BRIEF
Environment and climate
Focusing on a world without waste. We are committed to actively work on pursuing sustainability and
protecting the environment.
The challenge +
relevant SDG
Ambition
Long-term targets
(2030)
Key KPIs monitored Results 2021 Targets 2022
Kitron supports
a precautionary
approach to
environmental
challenges
and works
systematically to
promote greater
environmental
responsibility.
Kitron encourages
the development
and diffusion of
environmentally
friendly
technologies.
• 50% cut
in carbon
emissions / net
zero by 2050
• 50% of product
portfolio
is circular/
designed for
recycling
• 100% Green
energy
• Zero waste in
operations
• Carbon
emissions
reduction
• Effective energy
consumption
• Water security
• Circular
economy
• Reduced C02
emissions
expressed
as energy
eciency
factor with 10%
• Started
reporting to
CDP
• Green energy
scope
increased by
23%
• Water
consumption
reduced by 23%
• Increase Eco
Vadis score by
10%
• Reach 80%
green energy
from total use
• Start report
Scope 3 CO2
Turnover by site 2019 2020 2021
Norway 2.0% 2.7% 4.9%
Sweden 9.0% 6.1% 20.2%
Lithuania 16.7% 14.6% 22.5%
Poland 6.0% 18.6% 29.2%
China 36.0% 29.5% 29.1%
USA 1.6% 3.3% 46.3%
Table 14: Employee turnover by site
116ANNUAL REPORT 2021
KITRON IN BRIEFSUSTAINABILITY REPORT
Environmental management
The main risks posed to the natural environment
The main risks posed to the natural environment
from Kitron’s operations are direct emissions from
the use of chemical liquids, nitrogen, or lead in
Kitron’s production and indirect emissions from
energy use in operations, transportation and
business travels.
As a manufacturing supplier, the Kitron internal
value chain does not pollute the external
environment to any material extent. The impact
mainly comes from purchasing materials, goods
and services. Kitron Suppliers Code of Conduct
describes the requirements Kitron imposes on
the suppliers to minimize the adverse effects to
community, environment and natural resources
while safeguarding the health and safety of
the public. Supplier shall obtain all required
environmental permits.
To further strengthen sustainability management
Kitron started to use Eco Vadis as a widely used
Business Sustainability Rating provider. In 2021
Kitron received a “Silver” sustainability rating
medal that puts us under the TOP 25 per cent of
the companies rated by Eco Vadis.
Climate emissions and climate risk
We will work systematically to reduce energy
consumption and GHG emissions, with special
focus on material consumption, energy
consumption, effective communication and
transportation. We have set targets for the
reduction of CO2 emissions for our in-house
operations in accordance with the obligations in
the Paris Agreement.
Climate Risk and Opportunities
In 2021 Kitron has initiated activities to work
towards climate-related nancial disclosures in
accordance with the TCFD recommendations.
The aim is to enhance our understanding and
transparency about the exposure and the strategies
to stay ahead of any negative impact caused by
climate change and adaptation measures.
TCFD Roadmap
In order to enhance our understanding and
transparency Kitron has developed the below
roadmap.
Several of the Kitron group’s manufacturing units
are certied in accordance with the NS ISO 14000
series of environmental management standards
created to help reduce industrial waste and
environmental damage.
2021 Planned 2022 Planned 2023
Governance and strategy Responsibility assigned to
executive level.
Initiated discussions on
executive level
Created quarterly climate
emission oversight and
tracking
Board level involvement
Increase emissions scope to
include Scope 3 emissions
for improved oversight and
risk mapping
Ongoing board and
management oversight
Submitting full TCFD
reporting
Risk management Risk assessment for
physical climate risk per site
completed and measures
implemented
Ongoing climate risk
monitoring as part of
company risk management
Metrics and targets GHG reporting: Baseline
measurement scope 1,2
Emission reduction targets
set
GHG reporting scope 1,2
and partial 3
Risk management for
identied medium to high
risk
GHG reporting scope 1,2
and 3
Risk mitigating activities
implemented for identied
medium to high risk
Table 15: Kitron TCFD roadmap
117ANNUAL REPORT 2021
KITRON IN BRIEFSUSTAINABILITY REPORT
Kitron’s CO2-emissions have been calculated in
accordance with the “Greenhouse Gas Protocol”
published by the World Business Council for
Sustainable Development (WBCSD) and World
Resources Institute (WRI).
The statistical data on greenhouse gas emissions
includes the following sources of CO2 emissions:
• Scope 1 direct emissions: emissions from
fuel combustion on- site, transportation
using company owned vehicles and on-site
generation of electricity, heat or steam.
• Scope 2 indirect emissions from electricity
purchased: emissions from the consumption
of electricity purchased. CO2 emission factors
used for electricity are market based and
calculated using IEA emission factors.
Energy use 2021 Units
Gas (heating) 481 142 Liter
Petrol (company
cars)
49 812 Liter
Electricity 15 500 000 kWh
Electricity from
renewable sources
11 265 000 kWh
Share of electricity
from renewable
sources
72%
% of total
electricity use
Table 16: Energy use
kWh 2021 Units
Arendal 3 981 000 kWh
Lithuania 4 380 000* kWh
Poland 2 152 000 kWh
Sweden 1 258 000 kWh
China 2 481 000 kWh
US 1 247 000 kWh
Group total 15 500 000 kWh
Table 17: Electricity use per location in kWh
* Lithuania 2021 162 000 kWh is own solar power
CO2 emissions 2021 Units
Scope 1 663 t CO2
Scope 2 market
based
2 091 t CO2
Group total (1+2) 2 754 t COt
Table 18: Group CO2 emissions
As a part of TCFD process, Kitron expand
emissions Metrics using Carbon Eciency Index,
calculated CO2 t divided by sales revenue in a
year.
Carbon Eciency Index allows to see results
from improvements implemented related to
reduction of CO2 emissions comparing with
changes in the scope of operations.
Carbon
eciency
2019 2020 2021
Revenue
MNOK
3 299 3 964 3 711
Carbon
eciency
(tCO2/
Revenue
MNOK)
0.87 0.83 0.74
Table 19: Carbon eciency
Water use
Water
consumption
cubic metres
2019 2020 2021
Norway 3 201 3 360 3 812
Sweden 1 700 1 910 1 808
Lithuania 8 180 5 941 7 515
Poland 1 097 3 291 3 955
China 3 685 5 185 2 503
US 1 544 998 518
Total 19 407 20 685 20 111
Table 20: Water consumption cubic meters
118ANNUAL REPORT 2021
KITRON IN BRIEF
Kitron has signed the WBCSD Pledge (WASH) for
Access to Safe Water, Sanitation and Hygiene.
We recognize that by signing this Pledge Kitron
commits to implementing access to safe water,
sanitation and hygiene at an appropriate level of
standard for all employees in all premises under
our direct control and supporting partners across
our value chains and communities that surround
our workplaces, within three years.
Waste and recycling
Tons of waste 2019 2020 2021
Total waste 680 827 777
Recycled waste 436 525 549
Hazardous waste 84 42 63
Amount recycled waste 64% 63% 70%
Table 21: Tons of waste
Responsible value chain
Kitron’s success is based on close cooperation with our trusted supply partners. Kitron’s customers are
found within demanding markets sectors, and in order to deliver on their expectations, we depend on high-
quality suppliers. Across all areas of sustainability, we have a focus on transparency to identify risks and
opportunities within our entire value chain.
The challenge +
relevant SDG
Ambition
Long-term targets
(2030)
Key KPIs monitored Results 2021 Targets 2022
All suppliers
should adhere to
Kitron’s supplier
code of conduct,
and support the
UN Declaration on
Universal Human
Rights
• 90% purchased
value report
CO2
• 100% of
suppliers in
line with Kitron
Supplier Code
• All critical
suppliers
committed
to become
climate neutral
(scope 1 and 2)
• Ethics and anti-
corruption
• Human rights
and conict
minerals
• Environment
in the supply
chain
• Supplier
performance
and risk
assessment
• Remained
conict mineral
free.
• Continued
the work to
on-board
non-inventory
suppliers using
the RFI form.
Introduced
risk-based
requirements
for registration
and registered
higher risk
non-inventory
suppliers
• Made sure
all sites used
the new
standardised
RFI and
digital quality
management
system for
gathering and
storing RFI
data. Reached
over 90% in
2021.
• 15% purchased
value report
CO2 (Scope 1
and Scope2)
119ANNUAL REPORT 2021
SUSTAINABILITY REPORT
Supply chain and quality management
In Kitron we use the highest standards in selection
of supply partners. Our main promise to any
customer is that we want to be their long term,
sustainable partner.
While the products and services we deliver are
required to meet the highest quality requirements,
we are fully committed to sustainable
development; and we expect the same from
our supply partners. Kitron s goal is to minimize
negative environmental and social impacts
from its supply chain. We expect our suppliers
to adhere to all applicable laws and regulations,
to the highest ethical standards dened in the
Kitron Code of Conduct, as well as to the separate
Suppliers Code of Conduct, which applies to all
suppliers. Delivering high quality products is key
to Kitron’s competitive advantage and of high
importance to our customers, employees and
owners. Kitron affects quality directly through
our purchasing, supplier selection, and quality
management processes, as well as indirectly
through our business relationships.
Kitron s supply chain
Kitron production inputs can be divided into
three parts: electronic components, mechanical
drawing parts and PCB (Printed Circuit Boards),
and the inputs are with few exceptions sourced
and produced outside of Norway.
Kitron s role in the supply chain
Electronic components: For this category, Kitron
primarily deals with distributors rather that with
manufacturers, however during 2021 we started
cooperation with direct manufacturers too in
order to serve better our customers and ensure
availability of production parts. On an annual
basis Kitron purchases components from close
to 1200 manufacturers through approximately a
1000 supply partners. Kitron has established a
Preferred Partner Program. In 2021 around 62 per
cent of all electronic components (in value) were
procured from 9 Preferred Partners.
Mechanical drawing parts: This sub commodity
includes a wide variety of parts, from metal
casting to machine parts, injection molded plastic,
sheet metal and aluminium die casting. Due to the
bulk and weight of this type of parts, Kitron tends
to purchase these components close to the point
of use and we continue to build mechanical parts
supply chain around our factories in different
regions.
Printed Circuit Boards (PCB): Kitron buys most of
the PCBs from China (up to 70 per cent of the world
PCBs are produced in China), either directly from
manufacturers or through distributors, as with
electronic components. In 2021 Kitron purchased
66 per cent of the PCBs from Preferred Partners.
In the case of PCBs, these Preferred Partners
include both distributors and manufacturers.
Supplier selection and onboarding
Kitron’s sourcing experts are located in Norway,
Sweden, Lithuania, Poland, China and United
States, enabling us to manage our global network
of suppliers and ensure an optimal ow of
components and materials to our manufacturing
centres. Sourcing in Kitron is a shared responsibility
between the global sourcing team and local
sourcing managers.
New sales, new requests for information (RFI) and
conict mineral reporting are handled by the global
sourcing team while local teams handle RFIs for
existing suppliers, manage supplier dialogue and
supplier coordination with local suppliers.
To ensure that the same supplier data is collected
regardless of category and country, Kitron has
developed and implemented a web based RFI
(Request for information). This data is then
automatically uploaded into Kitron’s Supplier
Evaluation Model (SEM) and in 2021 we already
expanded this automated functionality to make
even broader suppliers assessment including
additional suppliers’ sustainability rating.
Implementation started in 2021 and will be
nalized in Q1 2022.
To minimize supply chain risk, Kitron seeks to
ensure that Kitron’s spend with any specic
supplier does not exceed 20 per cent of the
total revenue of any single supplier and seeks to
diversify its sourcing strategy. Moreover, Kitron
diligently works at supplier consolidation, making
sure that we work only with the best possible
supply partners. In 2021, Kitron had 2032 active
suppliers, up from 1973 the year before. The
number of active suppliers is affected by the
number of new customers and the general supply
situation. Active supplier means Kitron have
placed a purchase order in the last 12 months.
120ANNUAL REPORT 2021
SUSTAINABILITY REPORT
Unique active suppliers
Unique active suppliers (12 month) – 2032
Share of active suppliers who have signed Code of
Conduct – 90.3%
Unique active
suppliers
2019 2020 2021
Unique active
suppliers (12
months)
1 396 1 973 2032
Share of
active
suppliers
who has
signed Code
of Conduct
80.0% 90.1% 90.3%
Table 22: Unique active suppliers
Human rights and conict minerals
All units of Kitron comply with UN’s Universal
Declaration on Human Rights, The UN’s Convention
on Rights of the Child and International Labour
Organization Conventions (ILO) conventions.
Kitron s approach to human rights protection is
guided by the Kitron Code of Conduct and the
Supplier Code of Conduct. Since 2018, Kitron has
been a UN Global Compact Signatory and supports
the ten UN Global compact principles. The ten
UN Global compact principles are embedded in
Kitron’s Code of Conduct.
Kitron and Kitron suppliers shall comply with
the human rights in the ILO conventions, and
specically comply with the labour rights and
child labour avoidance conventions. Kitron shall
not engage in or support any kind of child labour.
If a young worker is employed, this needs to
be controlled and arranged according to legal
requirements in terms of safety, work hours and
guidance and is not allowed to interfere with
applicable compulsory schooling. Kitron opposes
all forms of forced and compulsory labour.
Conict minerals
Kitron’s suppliers shall have policies to reasonably
assure that the tantalum, tin, tungsten and gold
in the products they manufacture do not directly
or indirectly nance or benet armed groups that
are perpetrators of serious human rights in the
Democratic republic of Congo or an adjoining
country. Suppliers shall exercise due diligence on
the source and chain of custody of these minerals.
All Kitron suppliers are required to ll in the CFSI
(now RMI) Conict Minerals Reporting Template
(CMRT).
Conict minerals 2019 2020 2021
Conict free 3TG+ NO 3TG by value 83.6% 79.1% 80.47 %
Conict free 3TG+NO 3TG by number of
parts
37 787 43 209 48 606
Table 23: Conict minerals by value and number of parts
121ANNUAL REPORT 2021
SHAREHOLDER INFORMATION
Share capital
Kitron ASA (Kitron) has one class of shares. Each
share carries one vote at the company’s general
meeting. The shares are freely transferable pursuant
to the company’s articles of association.
Kitron’s registered share capital at 31 December
2021 was NOK 19 701 438,90 divided between 197
014 389 shares with a nominal value of NOK 0.10
each.
In December 2021, the Board used it’s authorisation
from the General Meeting 21 April 2021 to increase
the share capital with 1 791 039.90 NOK with purpose
to partly nance the acquisition of BB Electronics
A/S. 17,910,399 New Shares were allocated in a
Private Placement at a subscription price of NOK
19.50 per share, raising gross proceeds of approx.
NOK 350 million. The increased share capital was
registered 30. December 2021.
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 subprograms, each with an allocation
of 1 250 000 option, where the rst program started 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
subprogram are linked to the 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.
Each subprogram is capped at 200 per cent increase
of the market capitalization, adjusted for dividends
and share buy-backs. The program has a clawback
clause. Each of the subprograms has a lock up-
period of one year and a down-sale period of two
years.
Per 31 December 2021, 3 420 000 options have
been allocated to the executive management and 1
580 000 options remain un-allocated.
Stock market listing
The company’s shares are listed on the Oslo Stock
Exchange (ticker code: KIT) in the OB “Match” liquidity
segment and is since 1 December 2016 part of the
Benchmark Index (OSEBX).
SHAREHOLDER INFORMATION
0
200
400
600
800
1000
1200
1400
0
5
10
15
20
25
2020-12-30 2021-02-28 2021-04-30 2021-06-30 2021-08-31 2021-10-31
Kitron OSEBX OSEBX2
122ANNUAL REPORT 2021
SHAREHOLDER INFORMATION
During 2021, the share price moved from NOK 18.12
to NOK 23.60, an increase of 30.2 per cent. In addition,
in 2021, the company paid an ordinary dividend NOK
0.70 per share in two tranches, NOK 0.35 per share
in May and NOK 0.35 per share in October. The Oslo
Børs Main Index increased by 23.3 per cent during
the same period. The share price has varied between
NOK 15.76 and NOK 23.95. At the end of 2021, the
company’s market capitalisation was NOK 4 649.5
million. A total of 147.5 million shares were traded
during the year, corresponding to a turnover rate of
78.4 per cent.
Shareholder structure
At the end of 2021, Kitron had 9 010 shareholders,
compared with 7 5703 shareholders at the end of
2020. At the end of the year, the foreign shareholding
amounted to 27.9 percent.
At the balance sheet date, Folketrygdfondet was
the largest shareholder holding 9.45 per cent of
the Kitron shares, followed by Vevlen Gård AS with
7.54 per cent and MP Pensjon with 5.29 per cent.
Liquidity of the share was 100 per cent. The 20
largest shareholders held a total of 56.17 per cent of
the company’s shares at the end of the year.
Mandates
Authorization to the board to issue shares
The ordinary general meeting of 21 April 2021
authorized the board of directors of Kitron ASA to
increase the share capital in accordance with the
Norwegian Public Limited Liability Companies Act
section 10-14 on the following conditions:
The share capital may, in one or more rounds, in
total be increased with up to NOK 1 791 039.90. The
authorization shall be valid until the Annual General
Meeting in 2022, but no later than 30 June 2022.
The shareholders’ pre-emptive rights according to
the Norwegian Public Limited Liability Companies
Act section 10-4 may be set aside. The authorization
is not intended for use to facilitate or obstruct the
success of a take-over bid where Kitron is the target
company. The authorization encompasses share
capital increase by contribution in any kind and the
right to incur Kitron ASA with special obligations
according to the Norwegian Public Limited Liability
Companies Act section 10-2. The authorization
encompasses resolutions on merger according to
the Norwegian Public Limited Liability Companies
Act section 13-5. 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, for remuneration to the members of
the board of directors of Kitron ASA, for incentive
schemes, and acquisition of property and business
within Kitron ASA’s purpose. The board of directors
decides on the other terms and conditions and is
authorized to amend the articles of association
as implied by the use of this authorization. This
authorization replaces any previously granted
authorizations for the board of directors to increase
the share capital. The authority was exercised during
December 2021. The Board used the authorization
to increase the share capital with 1 791 039.90 NOK
with purpose to partly nance the acquisition of
BB Electronics A/S. 17,910,399 New Shares were
allocated in a Private Placement at a subscription
price of NOK 19.50 per share, raising gross proceeds
of approx. NOK 350 million. The new share capital
was registered 30. December 2021.The authorized
share capital of the Company is therefore NOK 17
910 399.00.
Authorization to the board to buy own shares
The ordinary general meeting on 21 April 2021
authorized the board of directors of Kitron ASA to
acquire Kitron ASA’s own shares, for the purpose
of ownership or charge, in accordance with the
Norwegian Public Limited Liability Companies Act
sections 9-4 and 9-5 on the following conditions:
The Board of Directors may acquire shares in Kitron
ASA, on one or several occasions, provided that the
total combined nominal value of the acquired shares
after the acquisition must not exceed ten per cent of
the share capital, i.e. up to a total nominal value of
NOK 1,791,039.90. The authorization also includes
contract liens in the shares of Kitron ASA. The
authorization is not intended for use to facilitate or
obstruct the success of a take-over bid where Kitron
is the target company. Under this authorization the
board of directors may 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. Any and all previous authorizations
given to the board of directors to acquire own shares
shall be, and hereby are, withdrawn with effect from
the date this authorization is registered with the
Norwegian Register of Business Enterprises. Shares
123ANNUAL REPORT 2021
SHAREHOLDER INFORMATION
acquired according to the authorization shall either
be cancelled, used as remuneration to the members
of the board of directors of Kitron ASA, used in
incentive schemes or be used as consideration in
connection with acquisition of other companies
or businesses, joint ventures or joint business
operations, and acquisition of property and business
within Kitron ASA’s purpose. This authorization shall
be valid until the 2022 annual general meeting, but
not longer than 30 June 2022. The authority had not
been exercised at 31 December 2021.
Dividend policy
Kitron’s dividend policy is to pay out an annual
dividend of 20 per cent to 60 per cent of the company’s
consolidated net prot before non-recurring items.
When deciding on the annual dividend the company
will take into account company’s nancial position,
investment plans as well as the needed nancial
exibility to provide for sustainable growth.
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 nancial
situation. Interim nancial 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 signicant 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.
124ANNUAL REPORT 2021
BOARD AND MANAGEMENT
Board
BOARD AND MANAGEMENT
Tuomo Lähdesmäki
Chairman of the board
Elected for the period 2021-2022
Tuomo Lähdesmäki was born in 1957 and is a Finnish citizen. He holds a Master of Science in Engineering
from Helsinki University of Technology, a Master of Business Administration from INSEAD and has
completed the Stanford Executive Program. He is a founding partner of Boardman Oy, “The leading
network developing active ownership and board work competences” in Finland, and he has previously,
inter alia, been President and CEO of Elcoteq Network Oyj and Leiras Oy, General Manager at Swatch
Group and Vice President at Nokia Mobile Phones. Mr Lähdesmäki serves as Vice Chairman of the
boards of Fondia Oyj and Meconet Oy and as a Member of the Board of Turku University Foundation sr.
Mr Lähdesmäki was elected to the Kitron Board as Chairman in 2014 and is also Chairman of Kitron’s
remuneration committee. On December 31st, 2021, Mr Lähdesmäki owned 277 796 shares in Kitron.
Maalfrid Brath
Board member
Elected for the period 2021-2022
Maalfrid Brath was born in 1965 and is a Norwegian citizen. She holds an MSc degree from BI Norwegian
Business School in economics and business administration and an MSc degree from NHH Norwegian
School of Economics in professional accountancy. Ms Brath has since 2009 been Managing Director
of Manpower Group Norway and since 2019 she has also been Regional Managing Director of Nordic
&Baltics. From 1995 to 2009, she held various executive management positions at Storebrand ASA,
including EVP Business Development, EVP Retail, COO of Storebrand Livsforsikring and CEO of Storebrand
Fondsforsikring. Prior to 1995, she was Manager at Arthur Andersen. She sits on a number of boards
including The Confederation of Norwegian Enterprise.
Ms Brath was elected to the Kitron board in 2018. On December 31st, 2021, Ms Brath owned 22 677
shares in Kitron.
Gro Brækken
Deputy chairman of the board
Elected for the period 2021-2022
Gro Brækken was born in 1952 and is a Norwegian citizen. She holds an MSc in Chemical Engineering
from the Norwegian University of Science and Technology in Trondheim. Ms Brækken has a long and
broad experience from top management of international companies and organizations with CEO, line, and
staff-management experience within oil and gas, renery, shipbuilding, banking and the Confederation of
Norwegian Enterprise. Her previous position was as CEO of the Industry organization Norsk olje & gass
(the Norwegian Oil and Gas Association) and she is at present Secretary-General for the Norwegian
Institute of Directors. This background has given her in-depth industrial and political competence and
a broad network within politics, business and society in general. Gro Brækken also has solid board
experience as a member and chair of the boards of directors of national and international companies
and organizations within energy, industry, project management, health and NGOs.
Ms Brækken was elected to the Kitron board in 2015 and has since October 2015 been a member of the
remuneration committee. On December 31st, 2021, Ms Brækken owned 46 380 shares in Kitron.
125ANNUAL REPORT 2021
BOARD AND MANAGEMENT
Espen Gundersen
Board member
Elected for the period 2021-2022
Espen Gundersen was born in 1964 and is a Norwegian citizen. He holds an MBA from the Norwegian
School of Management, Oslo. He is also a Certied Public Accountant from the Norwegian School of
Economics and Business Administration in Bergen. Mr Gundersen is currently Deputy CEO and CFO of
Tomra Systems ASA. He joined Tomra in 1999 and has held several positions within the Tomra Group.
Prior to joining Tomra, he served as VP Business Development of Selmer ASA for ve years. He started
his career with Arthur Andersen in 1989.
Mr Gundersen was elected to the Kitron Board in 2017 and is board member in Hexagon Purus ASA. On
Dedcember 31st, 2021, Mr Gundersen owned 52 380 shares in Kitron.
Christian Jebsen
Board member
Elected for the period 2021-2022
Christian Jebsen was born in 1967 and is a Danish citizen. He holds a B.S. degree in economics and a B.A.
from Copenhagen Business School. Mr Jebsen is a partner at Verdane Capital. Prior to Verdane, Jebsen
has had a number of executive management positions including CEO of Kebony AS, CEO of Vmetro
ASA, CFO/COO of Opera Software ASA and CEO of Stavdal ASA. Jebsen’s professional background
also includes seven years within investment banking with Nomura International in London and Enskilda
Securities (SEB) in Stockholm and Oslo.
Mr Jebsen was elected to the Kitron board in 2018. On On December 31st, 2021, Mr Jebsen owned 22
380 shares in Kitron.
Bjørn Gottschlich
Board member
Elected by and among the employees
Bjørn Gottschlich was born in 1966 and is a German citizen. He was employed as an unskilled production
worker in 1996. In 2000 he was elected as a full-time shop steward for Fellesforbundet (The Norwegian
United Federation of Trade Unions) at Kitron AS in Arendal. He is now half redeemed from his position at
Kitron to perform various duties in his trade union. Bjørn is chair of Fellesforbundet’s local union branch in
Arendal and is a board member of Industriaksjonen. He is also elected representative on Fellesforbundet’s
National Delegates’ Meeting and a member of LO’s General Council.
Mr Gottschlich has been on the Kitron board since 2012. On December 31st, 2021, Mr Gottschlich owned
22 580 shares in Kitron.
126ANNUAL REPORT 2021
BOARD AND MANAGEMENT
Petra Grandinson
Board member
Elected for the period 2021-2022
Petra was born in 1968 and is a Swedish citizen. She holds a Master of Science in Vehicle engineering,
System technologies from the Swedish Royal Institute of Technology (KTH) in Stockholm. Ms Grandinson
is currently a Vice President Supply Chain at Epiroc Rockdrills AB and has a combination of operations
and commercial experience, having worked with advanced electrical hand tools, larger capital equipment
and technology infrastructure products and solutions. This includes rst-hand knowledge as a customer
of Electronic Manufacturing Services. She also brings international experience, having lived in China for
ve years and the UK for four years. She has had signicant exposure to R&D organisations.
Ms Grandinson was elected to the Kitron board in 2020. On December 31st, 2021, Ms Grandinson owned
14 254 shares in Kitron.
Tanja Rørheim
Board member
Elected by and among the employees
Tanja Rørheim was born in 1972 and is a Norwegian citizen. She holds a certicate in electronics and is
working as a production worker at Kitron AS in Arendal since 1993.
Ms Rørheim has been on the Kitron board since August 2015. On December 31st, 2021, Ms Rørheim
owned 22 380 shares in Kitron.
Jarle Larsen
Board member
Elected by and among the employees
Jarle Larsen was born in 1973 and is a Norwegian citizen. He has a background as an Electronics
Engineer and joined Kitron AS in 2007. Mr Larsen works as a Senior Lean Engineer. In 2010 he was
elected as leader for Nito at Kitron AS (The Norwegian Society of Engineers and Technologists). He still
holds this position.
Mr Larsen was elected to the Kitron board in 2019. On December 31st, 2021, Mr Larsen owned 15 724
shares in Kitron.
127ANNUAL REPORT 2021
BOARD AND MANAGEMENT
Management
Peter Nilsson
President & CEO
Born in 1964. CEO of Kitron since November 2014. Several senior and executive leadership positions
for Swedish and US companies. Mr Nilsson holds a degree in Industrial Management and is a Swedish
citizen.
Cathrin Nylander
CFO
Born in 1967. Joined Kitron in 2013. Extensive experience as CFO in various industries such as
manufacturing, IT, food industry, and nancial services. Ms Nylander holds a bachelor’s degree in social
science from Lund University in Sweden and is a Swedish citizen.
Kristoffer Asklöv
COO & Sales Director
Born in 1977. Joined Kitron in 2021. Mr Asklõv has more than 20 years of experience in electronics
production and has an Executive MBA in Leadership & Management and also an M.Sc in Product
Development / Industrial design from the University of Linköping. Kristoffer Asklöv is a Swedish citizen.
Zygimantas Dirse
Managing Director, Kitron Electronics Manufacturing (Ningbo) CO Ltd., China
Born in 1980. With Kitron since 2003. Mr Dirse has a broad experience from different international
positions in the company and holds a Master of Science in Informatics Technology. Zygimantas Dirse is
a Lithuanian citizen.
Stian Haugen
CTO
Born in 1976 and is a Norwegian citizen. Mr. Haugen joined Kitron in 2013 managing the technology
department of Kitron AS, Arendal. He has extensive experience from international R&D and customer
support and holds a B.sc in computer science from Agder University, Norway.
128ANNUAL REPORT 2021
BOARD AND MANAGEMENT
Mindaugas Sestokas
Managing Director UAB Kitron, Lithuania & VP Central Eastern Europe
Born in 1971. He has been with Kitron since 2008 and is a Lithuanian citizen. He holds a Master of
Business Administration and has diverse experience from sales and marketing in the food and beverage
industry and general management of an appliance manufacturing company.
Stefan Hansson Mutas
Managing Director, Kitron AB, Sweden
Born in 1966. With Kitron since 2017. Mr Hansson Mutas has a background from management positions
at several electronics and EMS companies. Stefan Hansson Mutas is a Swedish citizen.
Hans Petter Thomassen
Managing Director, Kitron AS, Norway & VP North America
Born in 1965. He joined Kitron in 2012. Mr Thomassen has extensive experience within manufacturing
and logistics and has held several senior-level positions, included CEO. He also has experience from
commercial aviation. Hans Petter Thomassen is a Norwegian citizen.
Carsten Christensen
CEO of BB Electronics
Born in 1966. CEO of BB Electronics since 2013 and part of the Kitron management teams since January
2022. Several senior leadership positions for German and US companies and over 20 years of experience
within the EMS Industry. Carsten Christensen is a Danish citizen and owns 51 561 shares in Kitron.
129ANNUAL REPORT 2021
ARTICLES OF ASSOCIATION
Latest updated 22 December 2021
§ 1
The company’s name is Kitron ASA. The company is a public limited company.
§ 2
The company’s registered oce shall be located in the municipality of Asker. The company may also conduct the
general meeting in the municipality of Oslo.
§ 3
Kitron’s business is manufacturing and development activities related to electronics. The business includes
purchase and sale of shares and companies in the same or related business sectors. The business may also
include related consultancy activities and other activities associated with the operation.
§ 4
The share capital of the company is NOK 19,701,438.90 divided into 197,014,389 shares with face value NOK
0.10 each. The company’s shares shall be registered at the Norwegian Central Securities Depository.
§ 5
The company’s board of directors shall have from 3 to 6 shareholder elected members for a period of up to two
years as resolved by the general meeting. The chairman of the board is elected by the general meeting. Two board
members acting jointly are authorised to sign on behalf of the company. The board may grant power of attorney.
§ 6
The ordinary general meeting is held each year before the end of the month of June. The ordinary general meeting
shall:
1. Consider and approve the annual report, the prot and loss statement and the balance sheet for the preceding
year.
2. Consider and approve the application of prot or coverage of decit according to the adopted balance sheet,
as well as payment of dividend.
3. Consider and resolve other matters that pertain to the general meeting according to Norwegian law.
§ 7
Kitron shall have a nomination committee. The nomination committee shall have two or three members, including
its chairman. Members of the nomination committee shall be elected for a term of oce of up to two years.
The annual general meeting of Kitron shall elect the chairman and the members of the nomination committee.
The mandate of the nomination committee shall be determined by the annual general meeting. The annual
general meeting shall also determine the committee’s remuneration.
The nomination committee shall submit proposals to the annual general meeting in respect of the following
matters:
• Propose candidates for election to the board of directors
• Propose candidates for election to the nomination committee
• Propose the fees to be paid to the members of the board of directors
• Propose the fees to be paid to the members of the nomination committee
ARTICLES OF ASSOCIATION
130ANNUAL REPORT 2021
§ 8
Any issue that has not been resolved in these Articles of Association shall be considered in accordance with the
regulations in the existing laws applicable to limited companies.
§ 9
Documents concerning matters to be considered at the general meeting are not required to be sent to the
shareholders if the documents are made available for the shareholders at the company’s websites. This also
applies for documents that pursuant to law shall be included in or attached to the notice of the general meeting.
A shareholder may nonetheless require that documents concerning matters to be considered at the general
meeting are sent to him/her.
§ 10
The right to participate in and vote at a general meeting can only be exercised if the acquisition of the shares in
question has been recorded in the company’s share register no later than the fth business day before the date
of the general meeting (the “record date”).
§ 11
Shareholders may vote in advance, either in writing or by electronic means, up to 2 days prior to the general
meeting. The board of directors determines further in the notice to the general meeting how such voting shall be
carried out.
--o—
(Oce translation)
ARTICLES OF ASSOCIATION
131ANNUAL REPORT 2021
ADDRESSES
ADDRESSES
OFFICES
HEAD OFFICE
Kitron ASA
PO Box 97, NO-1375 Billingstad, Norway
Visiting address:
Olav Brunborgs vei 4 1396 Billingstad
Tel: +47 66 10 00 00
GERMANY - SALES AND CUSTOMER SUPPORT OFFICE
Kitron GmbH
Carl-Zeiss-Str. 3, DE-72555 Metzingen, Germany
Tel: +49 7123 374122-00
BB ELECTRONICS
DENMARK
BB Electronics A/S
Ane Staunings Vej 21, 8700
Horsens, Denmark
Tel: +45 7625 1000
Fax: +45 7625 1010
CHINA
BB Electronics Suzhou Co. Ltd.
Building 18# A&B, Suchun
Industrial Estate, No. 428 Xinglong
Street, Suzhou Industrial Park,
215024 Suzhou, China
Tel: +86 512 6956 2880
CZECH REPUBLIC
BB Electronics - Czech Republic
Nádražní 1179
563 01 Lanskroun
Czech Republic
Tel: +420 465 670 038
MANUFACTURING SITES
NORWAY
Kitron AS
P O Box 799 Stoa NO-4809
Arendal, Norway
Visiting address:
Tverrdalsøyveien 100, 4920
Staubø
Tel: +47 37 07 13 00
LITHUANIA
UAB Kitron, Užliedžiu site
Plento g. 6, LT-54305 Užliedžiai,
Lithuania
CHINA
Kitron Electronics Manufacturing
(Ningbo) Co., Ltd
No. 189, DongHui Road Nordic
Industrial Park Zhenhai District
Ningbo 315221, P. R. China
Tel: +86 574 8630 8600
Fax: +86 574 8630 8601
SWEDEN
Kitron AB
P O Box 1052, SE-551 10
Jönköping, Sweden
Visiting address:
Möbelvägen 5, 55652 Jönköping
Tel: +46 36 290 21 00
LITHUANIA
UAB Kitron, Administration
Perspektyvos g.22 LT-52119
Kaunas, Lithuania
USA
Kitron Technologies Inc.
345 Pomroys Drive Windber,
Pennsylvania 15963, USA
Tel: +1 814 467 7477
Fax: +1 815 301 8468
LITHUANIA
UAB Kitron, Taikos site
Taikos pr. 151, LT-52119 Kaunas,
Lithuania
Tel: +370 37 40 93 30
CHINA
Kitron Electromechanical
(Ningbo) Co., Ltd
No. 179, DongHui Road Nordic
Industrial Park Zhenhai District
Ningbo 315221, P. R. China
Tel: +86 574 8630 8600
Fax: +86 574 8630 8601
POLAND
Kitron Sp. z o. o.
ul. Droga Kurpiowska 75 86-300
Grudziądz, Poland
Tel: +48 56 642 58 80
132ANNUAL REPORT 2021
KITRON IN BRIEF
Kitron is a Scandinavian Electronics Manufacturing Services company. The company has manufacturing
facilities in Norway, Sweden, Denmark, Lithuania, Poland, the Czech Republic, China and the US and has about 2
500 employees. Kitron manufactures both electronics that are embedded in the customers’ own product, as well
as box-built electronic products. Kitron also provides high-level assembly (HLA) of complex electromechanical
products for its customers.
Kitron offers all parts of the value chain: From design via industrialisation, manufacturing and logistics, to
repairs. The electronics content may be based on conventional printed circuit boards or ceramic substrates.
Kitron also provides various related services such as cable harness manufacturing and components analysis,
and resilience testing, and source any other part of the customer’s product. Customers typically serve
international markets and provide equipment or systems for professional or industrial use.
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