Page 9 - Kitron Annual Report 2011

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Board of director’s report
The credit risk for the majority of the company’s
customers has been 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 largely short-term and related to fac-
tored accounts receivable. This means that fluctua-
tions in revenue impact the company’s liquidity. A
small share of the external capital is long-term. The
group has overdraft facilities that cover expected li-
quidity fluctuations during the year. The board consid-
ers the group’s liquidity to be sufficient.
The group’s interest-bearing debt attracts interest
cost at the market based rate. Kitron has no financial
instruments related to interest rates. The group does
not hold any significant interest-bearing assets.
Health, safety and environment
At the end of 2011 the group employed a total of
1 198 people and adjusting for part time employees
this translates to 1 173 full-time equivalents. The
figures include temporary employees and have not
been adjusted for sick leave. The competence of our
employees represent a major asset and competitive
advantage for Kitron.
There was one serious work-related accident in 2011.
In December one production worker in Kaunas was in-
jured during maintenance in the production area. The
accident is under investigation by the local authorities
and separately Kitron has conducted an internal inves-
Sick leave in Kitron rose from 4.1 per cent in 2010 to
4.6 per cent in 2011. The board considers that the
working environment is good and special measures in
this regard have not been deemed necessary.
Kitron does not pollute the external environment to
any material extent. Several of the group’s manufactur-
ing units are certified in accordance with the NS ISO
14000 series of environmental management stand-
ards. Kitron AS in Norway is a UN climate partner.
Equal opportunities
Kitron’s basic view is that people with different back-
grounds, irrespective of ethnic background, gender,
religion or age, should have the same opportuni-
ties for work and career development at Kitron. The
company’s manufacturing factories have traditionally
employed a higher proportion of women. Women
represented 53.9 per cent of total fulltime equivalents
(FTEs) at Kitron in 2011. Of 835 FTEs in manufactur-
ing 61.6 per cent were women while of 339 indirect
employees 34.8 per cent were women.
Kitron is taking its social responsibility seriously. In ad-
dition to ensure 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 (basic salary and allowances) of
women working directly in manufacturing in the Nor-
wegian and Swedish companies was approximately
87.6 per cent of the average pay for men. The aver-
age pay for men and women vary due to differences
in job categories and years of service, not because of
Indirect functions include management employees,
staff and other support functions. The employees in
the company management teams are predominantly
male. In the corporate management team there are
only male members. No gender-based differences
exist with regard to working hour regulations or the
design of workplaces.
The composition of the board complies with the
requirements in the Norwegian Public Limited
Companies Act regarding gender balance.