2015-11-05 07:00:00 CET
2015-11-05 07:01:03 CET
SÄÄNNELTY TIETO
Bittium Oyj - Interim report (Q1 and Q3)
Bittium Corporation's interim report January-September 2015
Stock exchange release
Free for publication on November 5, 2015 at 8.00 a.m. (CET+1)
Bittium Corporation's interim report January-September 2015
Net sales of January-September 2015 grew and operating profit improved from the
previous year
In this interim report the Wireless business and corporate functions are
reported as continuing operations and the Automotive business, sold on July
1, 2015, as discontinuing operations. Cash flow includes both continuing and
discontinuing operations.
Changing the name from Elektrobit Corporation to Bittium Corporation became in
force on July 1, 2015. In this interim report the name Bittium is also used in
the events before the name change.
Summary July-September 2015, continuing operations
* Net sales grew to EUR 11.1 million (EUR 10.0 million, 3Q 2014), representing
an increase of 11.7 % year-on-year.
* Operating result was EUR 0.0 million (EUR 1.1 million, 3Q 2014), including
the non-recurring income of EUR 1.1 million resulting from the
reorganization cases of the TerreStar Companies.
* Net cash flow was EUR 575.5 million (EUR 9.8 million, 3Q 2014, including
both continuing and discontinuing operations). Net cash flow includes the
cash flow resulting from the sale of the Automotive business and the cash
flow of the cancelled demerger process.
* Earnings per share were EUR 0.001 (EUR 0.009, 3Q 2014).
* The number of Bittium's shares increased by altogether 277 005 new shares
subscribed by virtue of the stock option rights 2008C. At the end of the
period, the number of shares in Bittium Corporation totaled 132 818 030.
* The sale of the Automotive business was closed on July 1, 2015, as the
closing conditions, such as the approval of the Extraordinary General
Meeting, receipt of the required authority approvals and other customary
closing conditions was fulfilled. The purchase price of the transaction was
EUR 600 million, which was fully paid in cash upon the closing of the
transaction.
* As the transaction was closed, the name of the Company was changed to
Bittium Corporation, Bittium Oyj in Finnish, registered in the trade
register and the new trading code in the stock exchange changed from July
2, 2015 onwards to BITTI.
* On July 1, 2015, due to the sale of the Automotive business and the change
of the company name on July 1, 2015, the Board of Directors of Bittium
updated the company's strategic guidelines.
* On August 6, 2015 Bittium Corporation announced that it is planning to
distribute the net proceeds from the sale of its Automotive business, a
maximum of EUR 595 million, to its shareholders in the first instance by
repurchasing own shares in a voluntary public tender offer directed to all
shareholders of the company. On August 6, 2015 the Board of Directors of
Bittium Corporation also decided upon nominations and changes in the
company's management. Hannu Huttunen, M.Sc. (Econ.) was appointed CEO of
Bittium Corporation as of August 7, 2015. The contract of Bittium's current
CEO Jukka Harju terminated on August 6, 2015 by mutual consent.
* On August 24, 2015 Bittium announced its plans to repurchase its own shares
and stock options for a total purchase price of approximately EUR 595
million in a voluntary public tender offer directed to all shareholders and
holders of stock options 2008C of the Company.
* As part of the arrangement to distribute the net proceeds from the sale of
its Automotive business to its shareholders, Bittium Corporation published
its interim financial statements from the period of January 1 - July
1, 2015, and gave notice to convene an Extraordinary Shareholders Meeting to
decide upon the repurchase of the company's own shares and stock options
2008C entitling to shares by means of a voluntary public tender offer made
to all shareholders and holders of stock options 2008C.
* The Extraordinary General Meeting of Bittium Corporation, held on September
14, 2015 decided on the repurchase of own shares and stock options. The
offer period of the Offer commenced on September 25, 2015 at 9.30. a.m.
(Finnish time) and expired on October 16, 2015 at 4.00 p.m. (Finnish time).
The offer price of a Share was EUR 5.06 for a Share, and it was paid in cash
for each Share validly tendered in accordance with the terms and conditions
of the Offer. The offer price of a Stock Option was EUR 4.51 for a Stock
Option, and it was paid in cash for each Stock Option validly tendered in
accordance with the terms and conditions of the Offer.
* In addition the Extraordinary General Meeting of Bittium Corporation decided
on election of new members of the Board of Directors. Kirsi Komi, Juha
Putkiranta and Seppo Mäkinen were elected as new members of the Board of
Directors for a term commencing on November 5, 2015 and continuing until the
close of the next Annual General Meeting. The new members of the Board of
Directors replace the previous members of the Board of Directors Jorma
Halonen, Juha Hulkko and Seppo Laine, who had notified that they will leave
the Board of Directors when the term of the new members commences.
GROUP (MEUR) 7-9/2015 7-9/2014 2014
Continuing operations 3 months 3 months 12 months
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NET SALES 11.1 10.0 52.7*
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Change of net sales, % 11.7% -13.5% -13.7 %
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OPERATING PROFIT / LOSS 0.0 1.1 0.8
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Operating profit / loss, % of net sales 0.2% 10.4% 1.5 %
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Operating profit / loss without non-recurring 0.0 -0.1 0.3
items
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EBITDA 0.6 1.7 3.1
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CASH AND OTHER LIQUID ASSETS 617.5 40.7 43.3
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EQUITY RATIO (%) 97.9% 64.0% 62.3 %
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EARNINGS PER SHARE (EUR) 0.001 0.009 0.010
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*) Continuing operations include the previously reported Wireless business and
corporate functions. Net sales from the continuing operations does not include
the previously reported net sales of the Wireless Business Segment resulting
from the internal sales from the Wireless Business Segment to the Automotive
Business Segment.
Summary January-September 2015, continuing operations
* Net sales grew to EUR 41.6 million (EUR 36.6 million, 1-9 2014), an increase
of 13.7 % year-on-year.
* Operating profit was EUR 1.5 million (operating loss of EUR -1.0 million,
1-9 2014, including the non-recurring income of EUR 1.1 million resulting
from the reorganization cases of the TerreStar Companies).
* Net cash flow was EUR 574.2 million (EUR -2.3 million, 1-9 2014). Net cash
flow includes the dividend payment of EUR 5.3 million in April, the cash
flow of the Automotive business until June 30, 2015, as well as the cash
flows related to the sale of the Automotive business and cancelled demerger
process..
* Earnings per share were EUR 0.009 (EUR -0.008, 1-9 2014).
* The number of Bittium's shares increased by altogether 1 324 886 new shares
subscribed by virtue of the stock option rights 2008B and 2008C. At the end
of the period, the number of shares in Bittium Corporation totaled
132 818 030.
GROUP (MEUR) 1-9/2015 1-9/2014 2014
Continuing operations 9 months 9 months 12 months
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NET SALES 41.6 36.6 52.7*
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Change of net sales, % 13.7% -14.6% -13.7%
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OPERATING PROFIT / LOSS 1.5 -1.0 0.8
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Operating profit / loss, % of net sales 3.6% -2.7% 1.5 %
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Operating profit / loss without non-recurring 1.5 -2.1 0.3
items
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EBITDA 3.2 0.8 3.1
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CASH AND OTHER LIQUID ASSETS 617.5 40.7 43.3
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EQUITY RATIO (%) 97.9% 64.0% 62.3%
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EARNINGS PER SHARE (EUR) 0.009 -0.008 0.010
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*) Continuing operations include the previously reported Wireless business and
corporate functions. Net sales from the continuing operations does not include
the previously reported net sales of the Wireless Business Segment resulting
from the internal sales from the Wireless Business Segment to the Automotive
Business Segment.
Bittium's CEO Hannu Huttunen"Third quarter was our first quarterly period as Bittium. The new name of the
company has been well-accepted among our customers, personnel and other stake
holders. Our identity builds on being Nordic, Finnish Company, on trust and on
our competence grown during our long history. The new visual identity and
focusing our business in communication and connectivity solutions has created
positive interest towards Bittium.
After the sale of the Automotive business Bittium focuses on utilizing wireless
technologies. Our competitiveness is based on extensive and strong know-how in
radio technology, embedded software, electronics and product integration. This
competence results from our long-term cooperation with world leading mobile
communication technology companies, Finnish Defence Forces and other technology
companies.
In the third quarter the net sales grew by 11.7 per cent from previous year and
was EUR 11.1 million. The share of the product-based net sales was EUR 2.4
million, representing slight growth from previous year (EUR 1.9 million 3Q14).
Operating result was EUR 0.0 million. The operating result was negatively
affected somewhat by the re-organizing costs after the sale of the Automotive
business and bigger corporate costs directed to the continuing operations than
in corresponding period last year. Variations in the operating results between
the quarters are quite extensive in our business operations resulting above all
by the timing of product deliveries. In addition, vacation periods in the summer
time create variations in the operating results between the quarters.
In January-September, the net sales grew by 13.7 per cent from previous year and
was EUR 41.6 million. Operating profit was EUR 1.5 million, which was generated
during the first half of the year. Both net sales and operating result of the
period are according to our expectations.
During the third quarter, as part of the arrangement to distribute the net
proceeds from the sale of the Automotive business to our shareholders, we
started the process of repurchasing our own shares and stock options in a
voluntary public tender offer directed to all shareholders and stock option
holders. It was executed during October and as a result, the company's cash
flows and the shareholders equity decreased by EUR 493 million.
Bittium continues its R&D investments to its own products and platforms and aims
at growing the net sales especially in the international defense and authorities
markets. Our most significant R&D investment is related to the Bittium Tough
Mobile LTE smartphone, directed to public safety and authorities markets. The
R&D phase of the phone is at the final stage and the first product deliveries
will be already during this year. The authorities markets are slowly developing
markets by their nature and the sale of Bittium Tough Mobile is expected to
develop steady along the market development pace.
We continued our efforts to bring our defense market targeted product portfolio
to the international defense markets, and delivered our first small pilot
delivery of our tactical wireless IP network system for our customer abroad. As
stated earlier, the defense sales cycles are long by their nature and winning
significant deals takes several years. We have also continued our successful
cooperation with Finnish Defence Forces. The demand for our R&D services
remained steady during the period.
The growing need for wireless connectivity, increasingly growing amount of data
transfer and need for secure data transfer create demand for Bittium's
competence, products and product platforms, and Bittium has good conditions to
continue its growth also in the future."
Outlook for 2015
The 2015 business outlook remains unchanged. The demand for R&D services and
products is expected to develop positively especially in the authorities markets
and in various applications where wireless connectivity is needed.
For the year 2015 Bittium expects that from continuing operations the net sales
will grow and operating profit will be at the same level or higher than in the
previous year for the Wireless business (net sales of EUR 53.0 million and
operating profit of EUR 1.0 million in 2014). The outlook includes approximately
EUR 1.0 million more corporate functions' costs for the second half of 2015,
since these costs will no longer be shared with the Automotive business due to
the sale of the Automotive business.
The operating profit outlook above does not include non-recurring profits and
costs related to the sale of the Automotive business or the demerger process
that was cancelled. These are reported as part of the result of the
discontinuing operations. The company specifies that the transaction is
estimated to have approximately EUR 532 million positive non-recurring effect on
Bittium's net profit for the full year 2015.
More information about Bittium's market outlook is presented in the section"market outlook" in this interim report.
More information about other uncertainties regarding the outlook is presented in
this interim report sections "Risks and uncertainties" and "Events after the
review period", as well as on the company's internet pages at www.bittium.com.
Invitation to a press conference
Bittium will hold a press conference on the interim report January-September
2015 for media, analysts and institutional investors in Restaurant Savoy,
Eteläesplanadi 14, Helsinki, Finland, on Thursday November 5, 2015 at 9.30 am
(CET+1).
Bittium will also hold a telephone conference on the same day at 10.30 am. The
dial-in number for the conference call is +44 203 059 8125, confirmation code is"Bittium". The conference can be followed also live as an audio webcast,
accessible at www.bittium.com/investors. The conference call will be held in
English.
A recording of the audio webcast and the presentation will be available after
the conference on Bittium's website at www.bittium.com/investors.
Bittium
Bittium is specialized in developing reliable and secure communications and
connectivity solutions using the latest technologies and deep knowledge on radio
technology. Bittium provides innovative products and customized solutions based
on its product platforms, and R&D services for customers in various industries.
Bittium also offers high quality information security solutions for mobile
devices and portable computers. Net sales of continuing operations in 2014 was
EUR 52.7 million and operating profit was EUR 0.8 million. Bittium is listed on
Nasdaq Helsinki. www.bittium.com
Bittium Corporation Interim Report January-September 2015
In this interim report the Wireless business and corporate functions are
reported as continuing operations and the Automotive business, sold on July
1, 2015, as discontinuing operations. Cash flow includes both continuing and
discontinuing operations.
Changing the name from Elektrobit Corporation to Bittium Corporation became in
force on July 1, 2015. In this interim report the name Bittium is also used in
the events before the name change.
Financial performance in January-September 2015
Bittium's net sales during January-September 2015 grew by 13.7 per cent year-on-year to EUR 41.6 million (EUR 36.6 million, 1-9 2014). The growth in net sales
was mainly driven by the deliveries of special terminal products and related R&D
services as well as other products for authorities use.
The share of the product-based net sales was EUR 11.2 million (EUR 7.8 million,
1-9 2014), which resulted mainly from the product deliveries of the tactical
communication system to the Finnish Defence Forces and from a similar but small
pilot system delivery for a customer abroad, as well as from the delivery of
other terminal products for the authority use.
Operating profit was EUR 1.5 million including the costs of EUR 0.4 million
resulting from the name change of the company (operating loss of EUR -1.0
million, 1-9 2014, including a non-recurring income of EUR 1.1 million resulting
from the reorganization cases of the TerreStar companies). The operating result
improved from the previous year due to the growth in net sales and improved
gross margin.
consolidated statement of comprehensive income, meur 1-9/2015 1-9/2014
9 months 9 months
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CONTINUING OPERATIONS
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Net sales 41.6 36.6
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Operating profit / loss 1.5 -1.0
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Financial income and expenses -0.3 -0.0
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Result before tax 1.2 -1.0
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RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS 1.2 -1.1
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RESULT FOR THE PERIOD FROM DISCONTINUING OPERATIONS 538.4 7.2
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RESULT FOR THE PERIOD 539.6 6.2
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TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 539.7 6.6
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Result for the period attributable to:
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Equity holders of the parent 539.6 6.2
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Non-controlling interests
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Total comprehensive income for the period attributable to:
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Equity holders of the parent 539.7 6.6
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Non-controlling interests
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Earnings per share from continuing operations, EUR 0.009 -0.008
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* Cash flow from operating activities was EUR 1.8 million (EUR 5.1 million,
1-9 2014). The cash flow includes the operating cash flow of the Automotive
business until June 30, 2015.
* Net cash flow was EUR 574.2 million (EUR -2.3 million, 1-9 2014). Net cash
flow includes the dividend payment of EUR 5.3 million in April and the cash
flow of the Automotive business until June 30, 2015, as well as the cash
flows related to the sale of the Automotive business and cancelled demerger
process.
* Equity ratio was 97.9 % (64.0 %, September 30, 2014).
* Net gearing was -97.9 % (-38.9 %, September 30, 2014).
* The figures mentioned above are essentially affected by the sale of the
Automotive business and thereof received net proceeds.
Quarterly figures
GROUPS NET SALES AND OPERATING RESULT, 3Q/15 2Q/15 1Q/15 4Q/14 3Q/14
CONTINUING OPERATIONS, MEUR
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Net sales 11.1 15.3 15.1 16.1 10.0
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Operating profit (loss) 0.0 1.0 0.5 1.8 1.1
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Operating profit (loss) without non-recurring 0.0 1.0 0.5 2.4 -0.1
costs
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Result before taxes 0.1 0.8 0.4 1.6 1.2
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Result for the period 0.1 0.8 0.4 2.4 1.2
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Non-recurring items
Non-recurring items are exceptional gains and losses that are not related to
normal business operations and occur only seldom. These items include capital
gains or losses, significant changes in asset values such as write-downs or
reversals of write-downs, significant restructuring costs, or other items that
the management considers to be non-recurring. When evaluating a non-recurring
item, the euro translation value of the item is considered, and in case of a
change in an asset value, it is measured against the total value of the asset.
In 2014 the following non-recurring items were included: * Non-recurring income of approximately EUR 1.1 million in the Wireless
Business Segment resulting from the reorganization cases of TerreStar
companies during the third quarter of 2014; and
* A total of EUR 0.6 million of non-recurring costs resulting from the
Wireless Business Segment's personnel layoffs and from the acquisition costs
of SafeMove during the last quarter of 2014;
DISTRIBUTION OF NET SALES BY MARKET AREAS, 3Q/15 2Q/15 1Q/15 4Q/14 3Q/14
MEUR AND %
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Asia 0.1 0.1 0.0 0.2 0.0
0.6 % 0.6 % 0.2 % 1.5 % 0.0 %
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Americas 0.2 0.8 2.1 0.6 0.7
1.6 % 5.2 % 14.2 % 3.5 % 6.6 %
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Europe 10.9 14.4 13.0 15.3 9.3
97.8 % 94.2 % 85.6 % 94.9 % 93.3 %
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Research and development
Bittium continued its R&D investments in products and product platforms mainly
for the defense and public safety markets.
The total R&D investments during January-September 2015 were EUR 5.4 million
(EUR 4.9 million, 1-9 2014), equaling to 13.0% of the net sales (13.3%,
1-9 2014).
EUR 2.7 million of R&D investments were capitalized (EUR 1.3 million,
1-9 2014). The amount of capitalized R&D investments at the end of September
2015 was EUR 5.1 million (EUR 1.5 million, September 30, 2014). A significant
part of these capitalized R&D investments is related to the development of the
Bittium Tough Mobile product. Depreciations of R&D investments were EUR 0.1
million during the reporting period (EUR 0.1 million, 1-9 2014).
The total negative effect, caused by the research and development investments,
their capitalizations and depreciation, on Bittium's income statement in
January-September 2015, was EUR -2.8 million (EUR -3.7 million, 1-9 2014).
Business development in July-September 2015
Bittium's net sales during July-September 2015 grew by 11.7 per cent year-on-
year to EUR 11.1 million (EUR 10.0 million, 7-9 2014). The share of the product-
based net sales was EUR 2.4 million (EUR 1.9 million, 7-9 2014), which resulted
mainly from the product deliveries of the tactical communication system to the
Finnish Defence Forces and from a similar but small pilot system delivery for a
customer abroad, as well as from the delivery of other terminal products for the
authority use.
Operating profit during July-September 2015 was EUR 0.0 million (EUR 1.1
million, 7-9 2014, including EUR 1.1 million non-recurring income resulting from
the reorganization cases of the TerreStar Companies).
Bittium continues its R&D investments for its own products and product platforms
and aims at growing its net sales especially from the international defense and
other authorities markets. R&D investments in the third quarter were EUR 1.5
million (EUR 1.5 million, 7-9 2014). R&D investments mainly focused on
developing the Bittium Tough Mobile, a high security level LTE smartphone,
targeted mainly for the demanding authority use. Its R&D phase is at the final
stage and the first product deliveries will be made already during this year.
The authorities markets are slowly developing markets by their nature and the
sale of Bittium Tough Mobile is expected to develop steady along the market
development pace.
The demand for Bittium's R&D services for mobile infrastructure customers
continued stable during the third quarter of the year. The demand was driven by
the use of LTE technology and the need to develop low power and micro base
stations.
Bittium continued its efforts in bringing its defense market targeted product
portfolio to the international defense markets, and delivered the first small
pilot delivery of its tactical wireless IP network system for a customer abroad.
The defense market sales cycles are long by its nature and winning significant
deals takes several years. Also the deliveries of our tactical communication
products, systems and services to the Finnish Defence Forces continued during
the third quarter. We also continued our good cooperation with Finnish Defence
Forces in developing our tactical communication system.
The development of the three mobile devices for Mexican government authority has
been started. Due to the failed launch of customer's first satellite, the
overall project schedule is expected to be delayed from the original. Over half
of the contract revenue is expected to materialize during 2016.
During the reporting period, Bittium participated in the Comprehensive Security
exhibition in Tampere, Finland, as well as in the DSEI 2015 exhibition targeted
for defense industry in London, UK, where we presented our products targeted for
defense and authorities customers.
Significant events during the reporting period
A total of 1 324 886 new shares in Bittium Corporation (former Elektrobit
Corporation) were subscribed between December 15, 2014 and August 17, 2015 by
virtue of the option rights 2008B and 2008C. The share subscription price, EUR
808,698.10, was recorded in the Company's invested non-restricted equity fund.
The corresponding increase in the number of the Company's shares was entered
into the Finnish Trade Register on February 6, April 14, June 24 and September
1, 2015. Shareholder rights by virtue of the new shares commence as of the
abovementioned registration entry date. Trading with the newly registered shares
started on February 9, April 15, June 25 and September 2, 2015 in NASDAQ OMX
Helsinki Ltd. After the registration of the new shares, the number of shares in
Elektrobit Corporation's totals 132,818,030.
On January 2, 2015 a subsidiary of Bittium Corporation acquired 100 per cent of
the shares of Birdstep Technology Oy, which was a fully owned Finnish subsidiary
of Birdstep Technology ASA, based in Norway. The acquired company's SafeMove
business provides its customers high quality information security solutions for
mobile devices and portable computers. The acquisition strengthened the
competitiveness of Bittium as a provider of secure communication solutions for
defence, safety and other authorities markets. Birdstep Technology Oy's
(SafeMove Oy from 2nd of January 2015 onwards) net sales was EUR 2.5 million in
2013 and in 2014 EUR 2.9 million. The company employs 19 persons located in
Espoo, Finland. The debt free cash purchase price was EUR 1.8 million. The
acquisition had no significant impact on Bittium's balance sheet, net sales and
financial position.
The Board of Directors of Bittium Corporation approved on February 18, 2015 a
plan for partial demerger of the company and the listing of the new Bittium
Corporation as a separate entity at Nasdaq Helsinki. Simultaneously the Board of
Directors updated the strategic guidelines and financial targets for the years
2015 -2017. Based on the demerger plan, the assets and liabilities related to
Elektrobit Corporation's Wireless Business Segment would be transferred to
Bittium Corporation, a new entity that would be listed at Nasdaq Helsinki. The
Automotive Business Segment would remain as a part of the then Elektrobit
Corporation, which would continue its listing at Nasdaq Helsinki. The partial
demerger would have been approved by an extraordinary general meeting, which was
planned to be held on June 11, 2015. The planned effective date for the demerger
would have been June 30, 2015. The partial demerger process was cancelled on May
19, 2015 as the company announced its plans to sell the Automotive business to
Continental AG.
On April 29, 2015 a notice has been given to the shareholders of Bittium
Corporation to an Extraordinary General Meeting that was planned to be held on
Thursday, 11 June 2015.
On May 2, 2015 Bittium Corporation announced that its subsidiary Bittium
Wireless Ltd and the Ministry of Mexican Communication and Transportation
(Secreteria de Comunicaciones y Transportes, SCT) signed an agreement regarding
the development of three types of Android-based L-band mobile devices for the
SCT's Mexsat program. These mobile devices will be based on Bittium's
Specialized Device Platform, a customized Android-based platform designed
especially for public safety and cyber security markets. The value of this
development agreement was approximately USD 21.9 million (approximately EUR
19.5 million as per exchange rate of April 30, 2015) with revenues will be
recognized gradually in 2015 and 2016 depending on the progress of the
development work. More than half of the contract value is expected to be
recognized as revenue during 2016.
The Extraordinary General Meeting held on September 14, 2015 decided on election
of new members of the Board of Directors. Kirsi Komi, Juha Putkiranta and Seppo
Mäkinen were elected as new members of the Board of Directors for a term
commencing on November 5, 2015 and continuing until the close of the next Annual
General Meeting. The new members of the Board of Directors replace the previous
members of the Board of Directors Jorma Halonen, Juha Hulkko and Seppo Laine,
who had notified that they will leave the Board of Directors when the term of
the new members commences.
The sale of the Automotive business to Continental AG and the related changes
On May 19, Bittium Corporation (former Elektrobit Corporation) announced it will
sell its Automotive business to Continental AG for a purchase price of EUR 600
million. The share purchase agreement was signed on May 18, 2015. The
transaction was expected to close in the beginning of July 2015. The Transaction
comprised the sale of Elektrobit Automotive GmbH and its subsidiaries, including
its 51 per cent ownership in e.solutions GmbH, a jointly owned company between
Elektrobit Automotive GmbH and Audi Electronics Venture GmbH. Simultaneously the
company cancelled the ongoing demerger process, and announced it will continue
to carry on its Wireless business within its existing Elektrobit Corporation
(currently Bittium Corporation). The company also announced to change its name
to Bittium Corporation, as the Elektrobit brand will be included as a part of
the transaction. In addition the company updated its outlook for 2015 based on
the assumption that the sale of the Automotive business will materialize in the
beginning of July.
The Extraordinary General Meeting of Bittium Corporation (former Elektrobit
Corporation), which was held on June 11, 2015, approved the sale of the
Automotive business to Continental AG according to Board of Director's proposal
and recommendation. The Extraordinary General Meeting also resolved to change
section 1 of the Company's Articles of Association and the name of the company.
The transaction was closed on July 1, 2015 as the closing conditions of the
transaction, such as the approval of Bittium's Extraordinary General Meeting,
receipt of the required authority approvals and other customary closing
conditions were fulfilled. The purchase price of the transaction, EUR 600
million, was fully paid in cash upon the closing of the transaction.
As the transaction was closed, the name of the company was changed to Bittium
Corporation, Bittium Oyj in Finnish, and the name change was registered in the
trade register on July 1, 2015. The company will continue to carry on its
Wireless business and will continue to be listed on NASDAQ Helsinki with its new
name. Bittium's new trading code in the stock exchange is BITTI from July
2, 2015 on.
On July 1, Bittium stated that the outlook for 2015 has been updated due to the
sale of the Automotive business and the change of the company name on July
1, 2015. Outlook regarding the net sales and operating result remains the same
as given in the outlook in the stock exchange release published on May
19, 2015. It was estimated that the transaction has a non-recurring positive
effect of approximately EUR 530 million on net profit and approximately EUR 575
million positive effect on net cash flow of the Bittium group in the year 2015.
On July 1, Bittium updated its strategic guidelines and outlook for 2015 due to
the sale of the Automotive business and the change of the company name. Bittium
carries on its Wireless business according to the announcements made on February
19, 2015, and according to the strategic guidelines and financial targets for
2015-2017.
On August 6, as a result from the sale of the Automotive business on July
1, 2015, the Board of Directors of Bittium Corporation has decided upon
nominations and changes in the company's management. Hannu Huttunen, M.Sc.
(Econ.) has been appointed CEO of Bittium Corporation as of August 7, 2015. The
contract of Bittium's current CEO Jukka Harju terminated on August 6, 2015 by
mutual consent, and he did not continue at Bittium after August 2015.
The company also announced, that as of August 7, 2015 the corporate functions
and Wireless Business Segment's functions will be merged and the following
persons will make the company's new management team: Hannu Huttunen, CEO
(chairman); Veli-Pekka Paloranta, CFO; Kari Jokela, CLO; Jari Sankala, Senior
Vice President, Sales; Karoliina Fyrstén, Director, Corporate Communications and
Marketing, heads of product and services areas: Harri Romppainen, Vice
President, Defense; Klaus Mäntysaari, Vice President, Telecom; and Sami
Kotkajuuri, Vice President, Connectivity; Jari-Pekka Innanen, Vice President,
Engineering and Arto Pietilä, Senior Vice President, Operations. CFO Veli-Pekka
Paloranta has decided to move to another company in November 2015 and has
resigned from Bittium. He will continue as Bittium's CFO until November 2015.
M.Sc. (econ.) LL.M. Pekka Kunnari has been appointed as CFO of Bittium
Corporation as of beginning of November 2015. It was also decided that the Board
of Directors of the Wireless Business Segment will be discontinued, since
Bittium now focuses on one business and there is no need for another board in
addition to the Board of Directors of Bittium Corporation.
On August 6, Bittium also told that it plans to distribute the net proceeds from
the sale of its Automotive business, a maximum of EUR 595 million, to its
shareholders in the first instance by repurchasing own shares in a voluntary
public tender offer directed to all shareholders of the company. The technical
analyses regarding the execution of the possible public tender offer was
continued and also other possible ways to carry out the distribution of funds
was also being evaluated simultaneously, and at that moment there was no
certainty on which distribution method the Board of Directors would propose to
the Extraordinary General Meeting. The planned distribution of funds required
preparation of separate interim accounts, after the completion of which the
Board of Directors was expected to decide on the proposal to the Extraordinary
General Meeting regarding the distribution method and the amount of funds to be
distributed during the second half of August 2015.
On August 24, Bittium told that it is planning to repurchase its own shares and
stock options for a total purchase price of approximately EUR 595 million in a
voluntary public tender offer directed to all shareholders and holders of stock
options 2008C of the Company. The offer would be made at market price and the
consideration offered would be determined as the volume weighted average price
of the share based on transactions in NASDAQ OMX Helsinki Ltd over the five days
preceding the acceptance of the offer document rounded to the nearest full EUR
cent. The offer would be made for a maximum of 124,747,351 Shares, corresponding
approximately to 94.1 per cent of all the shares in the Company on the date of
this release. The offer would also be made for a maximum of 252,648 stock
options. The offer would be executed only for the part of the consideration
payable for the shares amounting up to EUR 593,797,392.67 in the aggregate and
for the stock options amounting up to EUR 1,202,607.33 in the aggregate. A
shareholder or a holder of stock options had the option to accept the offer for
all the shares and/or stock options owned by him/her or for a number of shares
and/or stock options of his/her choosing per each book-entry account.
On August 24, the company gave a notice to its shareholders to an Extraordinary
General Meeting to on the repurchase of the company's own shares and stock
options 2008C entitling to shares by means of a voluntary public tender offer
made to all shareholders and holders of stock options 2008C. As part of the
arrangement to distribute the net proceeds from the sale of its Automotive
business to its shareholders, Bittium Corporation also prepared its interim
financial statements from the period of January 1 - July 1, 2015.
The Extraordinary General Meeting of Bittium Corporation, held on September
14, 2015, decided in accordance with the proposal of the Board of Directors that
the Company repurchases its own shares and stock options 2008C entitling to
shares by means of a voluntary public tender offer made to all shareholders and
holders of stock options.
On September 22, the company announced that its public tender offer for own
shares and stock options will commence on September 25, 2015 and expire on
October 16, 2015. The offer price for a share was EUR 5.06 and for a stock
option EUR 4.51. The share offer price was, in accordance with the decision of
the Company's Extraordinary General Meeting held on September 14, 2015, the
volume weighted average price per share based on transactions in the official
list of Nasdaq Helsinki Ltd during the five trading days preceding the
acceptance of the offer document (between September, 15 - September 21, 2015),
rounded to the nearest full euro cent. The offer document, accepted by the
Finnish Financial Supervisory Authority, was available from September 23, 2015
onwards on the company's internet pages.
At the end of the January-September 2015 interim period the offer period was
ongoing and the company had no information on the results of the tender offer.
As part of the tender offer, the distribution of the net proceedings and the
shares becoming null and void was finalized on November 4, 2015. More
information in this interim report, chapter "events after the review period", or
from the stock exchange releases, published on the company's internet pages at
www.bittium.com.
Outlook for 2015
The 2015 business outlook remains unchanged. The demand for R&D services and
products is expected to develop positively especially in the authorities markets
and in various applications where wireless connectivity is needed.
For the year 2015 Bittium expects that from continuing operations the net sales
will grow and operating profit will be at the same level or higher than in the
previous year for the Wireless business (net sales of EUR 53.0 million and
operating profit of EUR 1.0 million in 2014). The outlook includes approximately
EUR 1.0 million more corporate functions' costs for the second half of 2015,
since these costs will no longer be shared with the Automotive business due to
the sale of the Automotive business.
The operating profit outlook above does not include non-recurring profits and
costs related to the sale of the Automotive business or the demerger process
that was cancelled. These are reported as part of the result of the
discontinuing operations. The company specifies that the transaction is
estimated to have approximately EUR 532 million positive non-recurring effect on
Bittium's net profit for the full year 2015.
More information about Bittium's market outlook is presented in the section"market outlook" in this interim report.
More information about other uncertainties regarding the outlook is presented in
this interim report sections "Risks and uncertainties" and "Events after the
review period", as well as on the company's internet pages at www.bittium.com.
Market outlook
Bittium's customers operate in various industries, each of them having their own
industry specific factors driving the demand. A common factor creating demand
among the whole customer base is the growing need for even higher speed and
higher quality data transfer.
The following factors are expected to create demand for Bittium's products and
services in 2015 and beyond:
* In the mobile infrastructure equipment market the use of LTE technology is
expected to continue strong. This creates the need for services for LTE base
station development. There is a wide range of frequencies allocated for LTE
globally thus creating the need to develop multiple products to cover the
market and creating demand for R&D services for development of product
variants.
* The trend of using new commercial technologies, such as LTE, smart phones
and applications, is expected to continue in special verticals such as
public safety. The specific LTE frequency band allocations for authorities
create demand for customized LTE devices, such as Bittium's specialized
terminals communication modules. Bittium Tough Mobile secure LTE smart phone
creates the basis for new customer orders in the markets for public
authorities and mobile safety phones.
* Due to the long history in developing smart phones and mobile communication
devices, Bittium is in a good position to offer solutions, where e.g.
mastering of multi-radio technologies and end-to-end system architectures
covering both terminals and networks is needed.
* The demand for safety devices is expected to grow in the near future.
Bittium SafeMove product family is expected to increase the performance and
suitability in information security markets.
* IoT (Internet of Things) has become a significant development area in many
industries. The need for Bittium's IoT platform and integration capability
based customized solutions is generated by the increasing need by companies
for connected devices for business or consumer use, such as various wearable
devices and solutions, implementing industry's mobile applications and
connecting devices both with internet services as well as with other
devices.
* In the tactical defense communication market the need for larger amounts of
information data grows, generating demand for broadband networks, such as
Bittium's IP (Internet Protocol) based tactical communications solutions.
The general cost savings of the mobile telecommunications network equipment
companies is reflected as increasing price competition in the R&D services.
Despite of that the demand for Bittium's R&D services has remained steady during
2015.
Bittium continues the product development related to the Finnish Defence Forces'
Command and Control system, and aims at bringing its defence market targeted
products and services also to the international defense markets. The defense,
national safety and other authority markets are slowly developing markets by
their nature. They are characterized by long sales cycles driven by purchasing
programs of national governments, and the purchases of the selected products
take place over several years.
Risks and uncertainties
Bittium has identified a number of business, market and finance related risk
factors and uncertainties that can affect the level of sales and profits.
Market risks
In the ongoing financial period, global economic uncertainty may affect the
demand for Bittium's services, solutions and products and provide pressure on
e.g. pricing. In the short term such uncertainty may affect, in particular, the
utilization and chargeability levels and average hourly prices of R&D services.
As Bittium's customer base consists mainly of companies operating in the field
of telecommunication and defense and public safety authorities, the company is
exposed to market changes in these industries. A significant part of Bittium's
net sales accumulates from selling R&D services to a certain mobile
communications equipment manufacturer and from selling products and R&D services
to the Finnish Defence Forces. Deviation in anticipated business development
with such customer concentrations may translate as a significant deviation in
the Bittium's outlook, both in terms of net sales and operating result, during
the ongoing financial period and thereafter. Bittium seeks to expand its
customer base on a longer term and reduce dependence on individual companies and
hence the company will thereby be mainly affected by the general business
climate in these industries. The more specific market outlook has been presented
in this interim report in "Market outlook" section.
Business related risks
Bittium's operative business risks are mainly related to following items:
uncertainties and short visibility on customers' product program decisions,
their make or buy decisions and on the other hand, their decisions to continue,
downsize or terminate current product programs, execution and management of
large customer projects, ramping up and down project resources, availability of
personnel in labor markets, accessibility on commercially acceptable terms and
on the other hand successful utilization of the most important technologies and
components, competitive situation and potential delays in the markets, timely
closing of customer and supplier contracts with reasonable commercial terms,
delays in R&D projects, realization of expected return on capitalized R&D
investments, obsolescence of inventories and technology risks in product
development causing higher than planned R&D costs. Revenues expected to come
from either existing or new products and customers include normal timing risks.
Bittium has certain significant customer projects and deviation in their
expected continuation could result also significant deviations in the company's
outlook. In addition there are typical industry warranty and liability risks
involved in selling Bittium's services, solutions and products.
Bittium's product delivery business model faces such risks as high dependency on
actual product volumes, timing risks and potential delays in the markets. The
above-mentioned risks may manifest themselves as lower amounts of products
delivered or higher costs of production, and ultimately, as lower profit.
Bringing Bittium's products to international defense and other authorities
markets may take longer than anticipated because the projects are typically long
and the purchasing programs are prepared in the lead of national governments and
within the available financing. Once a supplier has been selected, product
deliveries are typically executed over several years.
Some of Bittium's businesses operate in industries that are heavily reliant on
patent protection and therefore face risks related to management of intellectual
property rights, on the one hand related to accessibility on commercially
acceptable terms of certain technologies in the Bittium's products and services,
and on the other hand related to an ability to protect technologies that Bittium
develops or licenses from others from claims that third parties' intellectual
property rights are infringed. Additionally, parties outside of the industries
operate actively in order to protect and commercialize their patents and
therefore in their part increase the risks related to the management of
intellectual property rights. At worst, claims that third parties' intellectual
property rights are infringed, could lead to substantial liabilities for
damages. In addition, the progress of the customer projects and delivery
capability may be also affected by potential challenges in global accessibility
of key technologies and components on commercially acceptable terms, as well as
by the acceptance of the necessary export licenses.
Financing risks
Global economic uncertainty may lead to payment delays, increase the risk for
credit losses and weaken the availability and terms of financing. To fund its
operations, Bittium relies mainly on income from its operative business and may
from time to time seek additional financing from selected financial
institutions. Currently Bittium has a committed overdraft credit facility
agreement of EUR 10.0 million with Nordea Bank Finland Plc and a committed
overdraft credit facility agreement of EUR 10.0 million with Pohjola Bank Plc.
These agreements meant for general financing needs are valid until June
30, 2017. These agreements include customary covenants related to, among other
things, equity ratio, transferring property and pledging. There is no assurance
that additional financing will not be needed in case of clearly weaker than
expected development of Bittium's businesses. Customer dependency in some parts
of Bittium's business may translate as an accumulation of risk with respect to
outstanding receivables and ultimately with respect to credit losses.
Statement of financial position and financing
The figures presented in the statement of financial position of September
30, 2015, are compared with the statement of the financial position of December
31, 2014 (MEUR).
30.09.2015 31.12.2014
-------------------------------------------------------------------------------
Non-current assets 13.5 48.8
-------------------------------------------------------------------------------
Current assets 634.0 118.0
-------------------------------------------------------------------------------
Total assets 647.5 166.8
-------------------------------------------------------------------------------
Share capital 12.9 12.9
-------------------------------------------------------------------------------
Other capital 616.4 80.5
-------------------------------------------------------------------------------
Total equity 629.3 93.4
-------------------------------------------------------------------------------
Non-current liabilities 2.0 7.6
-------------------------------------------------------------------------------
Current liabilities 16.2 65.8
-------------------------------------------------------------------------------
Total equity and liabilities 647.5 166.8
-------------------------------------------------------------------------------
Cash flow of the review period : 1-9/2015 1-12/2014
-------------------------------------------------------------------------------
+ profit of the period +/- Adjustment of accrual basis 10.8 27.4
items
-------------------------------------------------------------------------------
+/- Change in net working capital -4.8 -12.1
-------------------------------------------------------------------------------
- interest, taxes and dividends -4.2 -4.7
-------------------------------------------------------------------------------
= net cash from operating activities 1.8 10.5
-------------------------------------------------------------------------------
- net cash from investing activities 580.8 -9.2
-------------------------------------------------------------------------------
- net cash from financing activities -8.4 -1.0
-------------------------------------------------------------------------------
= net change in cash and cash equivalents 574.2 0.3
-------------------------------------------------------------------------------
Net cash from operating activities includes operative cash flows generated by
the Automotive business during first half of the year. Net cash from investing
activities includes cash flows related to the sale of the Automotive business on
the third quarter of the year. Altogether the sale of the Automotive business
and the cancelled demerger process have approximately EUR 584 million positive
effect on the cash flows of the review period.
The amount of gross investments in the period under review was EUR 6.3 million
including EUR 1.7 million investments related to acquisitions. Net investments
for the reporting period totaled EUR 6.3 million. The total amount of
depreciation during the period under review was EUR 1.7 million. The amount of
interest-bearing debt, including finance lease liabilities, at the end of the
reporting period was EUR 1.5 million (EUR 8.3 million on December 31, 2014).
Bittium's equity ratio at the end of the period was 97.9% (62.3 % on December
31, 2014). The high equity ratio is significantly affected by the proceeds
generated from the sale of the Automotive business.
Cash and other liquid assets at the end of the reporting period were EUR 617.5
million (EUR 43.3 million on December 31, 2014).
Bittium has a EUR 10 million credit facility agreement with Nordea Bank Finland
Plc. and a EUR 10 million credit facility agreement with Pohjola Bank Plc. These
agreements are intended for general financing purposes and they are valid until
June 30, 2017. These agreements include conventional covenants and covenants
related to transfer of assets were breached at the sale of the Automotive
business on July 1, 2017. The banks have informed Bittium that they will not use
their rights to terminate credit facility agreements related to the sale of the
Automotive business but they will reserve their right to consider termination
again in connection with the repatriation of funds. At the end of the review
period, EUR 0.0 million of these facilities was in use.
Bittium follows a hedging strategy that objective is to ensure the business
margins in changing market circumstances by minimizing the influence of exchange
rates. According to hedging strategy principles, the agreed customer
commitments' net cash flow in the currency is hedged. The net cash flow is
determined on the basis of accounts receivable, accounts payable, order book and
budgeted net currency cash flow. The hedged foreign currency exposure was
equivalent to EUR 4.0 million at the end of the review period.
Personnel
The Bittium group employed an average of 510 people in continuing operations
between January and September 2015. At the end of September, the company had
510 employees (474 employees in continuing operations at the end of 2014). A
significant part of Bittium's personnel are R&D engineers.
Flagging notifications
There were no changes in ownership during the period under review that would
have caused flagging notifications in accordance with the obligations for
disclosure in Chapter 2, section 9 of the Securities Market Act.
Events after the review period
On October 19, 2015 Bittium announced that according to the preliminary result
of the offer, the shares tendered in the offer represented approximately 73.2
per cent of all the shares and votes in the Company. In addition, according to
the preliminary result of the offer, approximately 62.0 per cent of all the
stock options in the Company had been tendered in the offer.
On October 21, the company announced that according to the final result of the
offer, 97,244,662 shares were tendered in the offer, representing approximately
73.2 percent of all the shares and votes in the company. In addition, 166,694
stock options were tendered in the offer, representing approximately 62.0
percent of all the stock options in the company. As a result of completing the
offer the cash balance and equity of the company will decrease by approximately
EUR 493 million. Completing the offer will have no effect on the guidance for
result of operations concerning the year 2015 previously published by the
company.
On October 22, the company announced to have received a flagging announcement
pursuant to chapter 9, section 5 of the Finnish Securities Market Act, according
to which the holdings of Kai Hilden in Bittium will decrease below the threshold
of 5 percent of the voting rights and total number of shares of the Company.
On October 22, the company announced to have received a flagging announcement
pursuant to chapter 9, section 5 of the Finnish Securities Market Act, according
to which the holdings of Eero Halonen in Bittium will decrease below the
threshold of 5 percent of the voting rights and total number of shares of the
Company.
On October 22, the company announced to have received a flagging announcement
pursuant to chapter 9, section 5 of the Finnish Securities Market Act, according
to which the holdings of Erkki Veikkolainen in Bittium will decrease below the
threshold of 5 percent of the voting rights and total number of shares of the
Company.
On October 22, the company announced to have received a flagging announcement
pursuant to chapter 9, section 5 of the Finnish Securities Market Act, according
to which the holdings of Juha Hulkko in Bittium will decrease below the
threshold of 5 percent of the voting rights and total number of shares of the
Company.
On October 27, the company announced to have cancelled its own shares and stock
options 2008C as a result of the completion of a voluntary public tender offer
for the Company's own shares and stock options. In accordance with the terms and
conditions of the offer, the shares and stock options transferred in the offer
will became null and void as part of the settlement of the completion trades of
the offer. As a result of the shares and stock options becoming null and void,
the number of Company's remaining shares is 35,578,835, and the number of
company's all remaining stock options is 102,300. Settlement of 5,467 shares to
be transferred in the Offer was completed within the same timetable as the
settlement of the other shares transferred, and such shares were not yet become
null and void.
On October 28, the company announced that as the voluntary public tender offer
for Bittium Corporation's own shares and stock options 2008C that was decided by
the Extraordinary General Meeting of the Company on September 14, 2015, has
resulted in changes in the ownership of the company, the company announced the
changes with regard to its ten largest shareholders resulting from completing
the offer.
On October 28, the company announced to have received a flagging announcement
pursuant to chapter 9, section 5 of the Finnish Securities Market Act, according
to which the holdings of Jukka Harju in Bittium will decrease below the
threshold of 5 percent of the voting rights and total number of shares of the
Company.
On October 29, the company announced that a total of 25,000 new shares in
Bittium Corporation were subscribed for between September 2, 2015 and October
14, 2015, pursuant to series 2008C stock options. The share subscription price,
EUR 13,750 was recorded in the Company's invested non-restricted equity fund.
The corresponding increase in the number of the Company's shares was entered
into the Finnish Trade Register on October 29, 2015. Trading with the newly
registered shares started on October 30, 2015 as an additional lot of Bittium
Corporation's shares in NASDAQ OMX Helsinki Ltd. After the registration of the
new shares, the number of shares in Bittium Corporation's totals to 35,603,835.
On November 4, the company announced to have cancelled 5,467 own shares
transferred in the offer, that didn't became null and void on October 27, 2015
in connection with the completion of the offer. After these shares became null
and void, the number of company's remaining shares is 35,598,368, and the number
of Company's all remaining stock options is 102,300.
The tender offer executed after the end of the review period has a significant
effect on financial position of the company. The following pro forma balance
sheet illustrates effects of the executed tender offer on the balance sheet per
September 30, 2015.
BALANCE SHEET Reported Pro Forma
Execution of the tender
Sep. 30. 2015 offer Sep. 30. 2015
-------------------------------------------------------------------------------
Intangible assets 8.6 8.6
Tangible assets 3.8 3.8
Investments 0.1 0.1
Inventories 1.4 1.4
Receivables 16.0 16.0
Cash and other cash
equivalents 617.5 -492.8 124.7
-------------------------------------------------------------------------------
Total Assets 647.5 -492.8 154.7
-------------------------------------------------------------------------------
Share capital 12.9 12.9
Other equity 616.4 -492.8 123.6
Total equity 629.3 -492.8 136.5
Long term liabilities 2.0 2,0
Short-term liabilities 16.2 16,2
-------------------------------------------------------------------------------
Total equity and
liabilities 647.5 -492.8 154,7
-------------------------------------------------------------------------------
Decisions of the Extraordinary General Meeting
The Extraordinary General Meeting held on September 14, 2015 decided in
accordance with the proposal of the Board of Directors that the Company
repurchases its own shares and stock options 2008C entitling to shares by means
of a voluntary public tender offer made to all shareholders and holders of stock
options.
Election of members of the Board of Directors
The Extraordinary General Meeting held on September 14, 2015 elected Kirsi Komi,
Juha Putkiranta and Seppo Mäkinen as new members of the Board of Directors for a
term commencing on November 5, 2015 and continuing until the close of the next
Annual General Meeting.
The new members of the Board of Directors replace the previous members of the
Board of Directors Jorma Halonen, Juha Hulkko and Seppo Laine, who had notified
that they will leave the Board of Directors when the term of the new members
commences.
The new members of the Board of Directors will be paid remuneration on the basis
of the decision of the Annual General Meeting held on April 15, 2015 and in
proportion to the remaining term of the current Board of Directors after the
commencement of the term of the new members of the Board of Directors.
Oulu, November 5, 2015
Bittium Corporation
The Board of Directors
Further Information:
Hannu Huttunen
CEO
Tel. +358 40 344 5466
Distribution:
NASDAQ OMX Helsinki
Major media
Bittium Corporation Condensed Financial Statements and Notes January - September
2015
(unaudited)
The Interim Report has been prepared in accordance with IAS 34 Interim Financial
Reporting.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1-9/2015 1-9/2014 1-12/2014
(MEUR)
Continuing operations 9 months 9 months 12 months
-------------------------------------------------------------------------------
NET SALES 41.6 36.6 52.7
-------------------------------------------------------------------------------
Other operating income 1.0 1.1 1.6
-------------------------------------------------------------------------------
Change in work in progress and finished goods
-------------------------------------------------------------------------------
Work performed by the undertaking for its own 0.1 0.0 0.0
purpose and capitalized
-------------------------------------------------------------------------------
Raw materials -4.6 -4.8 -6.8
-------------------------------------------------------------------------------
Personnel expenses -23.9 -21.9 -30.1
-------------------------------------------------------------------------------
Depreciation -1.7 -1.8 -2.3
-------------------------------------------------------------------------------
Other operating expenses -11.0 -10.2 -14.3
-------------------------------------------------------------------------------
OPERATING PROFIT (LOSS) 1.5 -1.0 0.8
-------------------------------------------------------------------------------
Financial income and expenses -0.3 -0.0 -0.2
-------------------------------------------------------------------------------
PROFIT BEFORE TAX 1.2 -1.0 0.6
-------------------------------------------------------------------------------
Income tax -0.0 -0.1 0.7
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS 1.2 -1.1 1.3
-------------------------------------------------------------------------------
Discontinued operations
-------------------------------------------------------------------------------
Profit for the year from discontinued operations 538.4 7.2 11.2
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 539.6 6.2 12.5
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Other comprehensive income:
-------------------------------------------------------------------------------
Items that will not be reclassified to statement
of income
-------------------------------------------------------------------------------
Re-measurement gains (losses) on defined benefit -0.8
plans
-------------------------------------------------------------------------------
Income tax effect 0.2
-------------------------------------------------------------------------------
Items that may be reclassified subsequently to the
statement of income
-------------------------------------------------------------------------------
Exchange differences on translating foreign 0.1 0.4 0.9
operations
-------------------------------------------------------------------------------
Other comprehensive income for the period total 0.1 0.4 0.4
-------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 539.7 6.6 12.9
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Profit for the year attributable to
-------------------------------------------------------------------------------
Equity holders of the parent 539.6 6.2 12.5
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total comprehensive income for the period
attributable to
-------------------------------------------------------------------------------
Equity holders of the parent 539.7 6.6 12.9
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from continuing operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.009 -0.008 0.010
-------------------------------------------------------------------------------
Diluted earnings per share 0.009 -0.008 0.010
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from discontinued operations,
EUR
-------------------------------------------------------------------------------
Basic earnings per share 4.075 0.055 0.086
-------------------------------------------------------------------------------
Diluted earnings per share 4.069 0.055 0.085
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from continuing and
discontinued operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 4.084 0.047 0.096
-------------------------------------------------------------------------------
Diluted earnings per share 4.078 0.047 0.095
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Average number of shares, 1000 pcs 132 121 130 868 130 975
-------------------------------------------------------------------------------
Average number of shares, diluted, 1000 pcs 132 322 131 604 131 663
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL Sep. 30, 2015 Sep. 30, 2014 Dec. 31, 2014
POSITION (MEUR)
-------------------------------------------------------------------------------
ASSETS
-------------------------------------------------------------------------------
Non-current assets
-------------------------------------------------------------------------------
Property, plant and equipment 3.8 9.2 10.7
-------------------------------------------------------------------------------
Goodwill 1.4 19.4 19.3
-------------------------------------------------------------------------------
Intangible assets 7.2 16.8 17.0
-------------------------------------------------------------------------------
Other financial assets 0.1 0.1 0.1
-------------------------------------------------------------------------------
Deferred tax assets 0.9 1.6 1.7
-------------------------------------------------------------------------------
Non-current assets total 13.5 47.1 48.8
-------------------------------------------------------------------------------
Current assets
-------------------------------------------------------------------------------
Inventories 1.4 1.5 2.2
-------------------------------------------------------------------------------
Trade and other receivables 15.1 60.9 72.5
-------------------------------------------------------------------------------
Financial assets at fair value 65.8 20.9 21.0
through profit or loss
-------------------------------------------------------------------------------
Cash and short term deposits 551.7 19.8 22.3
-------------------------------------------------------------------------------
Current assets total 634.0 103.1 118.0
-------------------------------------------------------------------------------
Assets classified as held for sale
-------------------------------------------------------------------------------
TOTAL ASSETS 647.5 150.2 166.8
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
EQUITY AND LIABILITIES
-------------------------------------------------------------------------------
Equity attributable to equity
holders of the parent
-------------------------------------------------------------------------------
Share capital 12.9 12.9 12.9
-------------------------------------------------------------------------------
Invested non-restricted equity 25.9 24.9 25.1
fund
-------------------------------------------------------------------------------
Translation difference 1.2 1.0 1.5
-------------------------------------------------------------------------------
Retained earnings 589.3 47.0 53.8
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
Total equity 629.3 85.9 93.4
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Non-current liabilities
-------------------------------------------------------------------------------
Deferred tax liabilities 0.1 0.5 0.5
-------------------------------------------------------------------------------
Pension obligations 2.2 3.0
-------------------------------------------------------------------------------
Provisions 1.2 0.2 0.2
-------------------------------------------------------------------------------
Interest-bearing liabilities 0.7 3.0 3.8
-------------------------------------------------------------------------------
Non-current liabilities total 2.0 5.9 7.6
-------------------------------------------------------------------------------
Current liabilities
-------------------------------------------------------------------------------
Trade and other payables 13.5 51.2 58.5
-------------------------------------------------------------------------------
Financial liabilities at fair 0.4 0.2
value through profit or loss
-------------------------------------------------------------------------------
Provisions 2.0 2.5 2.6
-------------------------------------------------------------------------------
Interest-bearing loans and 0.7 4.3 4.5
borrowings
-------------------------------------------------------------------------------
Current liabilities total 16.2 58.3 65.8
-------------------------------------------------------------------------------
Total liabilities 18.2 64.3 73.4
-------------------------------------------------------------------------------
Liabilities classified as held for
sale
-------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 647.5 150.2 166.8
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS (MEUR) 1-9/2015 1-9/2014 1-12/2014
9 months 9 months 12 months
-------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
-------------------------------------------------------------------------------
Profit for the year from continuing operations 1.2 -1.1 1.3
-------------------------------------------------------------------------------
Profit for the year from discontinued operations 538.4 7.2 11.2
-------------------------------------------------------------------------------
Adjustment of accrual basis items -528.8 10.7 14.9
-------------------------------------------------------------------------------
Change in net working capital -4.8 -9.3 -12.1
-------------------------------------------------------------------------------
Interest paid on operating activities -1.3 -0.4 -1.3
-------------------------------------------------------------------------------
Interest received from operating activities 0.3 0.3 0.4
-------------------------------------------------------------------------------
Other financial income and expenses, net received 0.0 0.0 0.0
-------------------------------------------------------------------------------
Income taxes paid -3.2 -2.4 -3.8
-------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 1.8 5.1 10.5
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
-------------------------------------------------------------------------------
Proceeds from sale of business unit, net of cash 588.2
sold
-------------------------------------------------------------------------------
Acquisition of business unit, net of cash acquired -1.8
-------------------------------------------------------------------------------
Purchase of property, plant and equipment -2.0 -2.2 -3.6
-------------------------------------------------------------------------------
Purchase of intangible assets -3.7 -4.4 -5.7
-------------------------------------------------------------------------------
Sale of property, plant and equipment 0.0 0.0 0.1
-------------------------------------------------------------------------------
Sale of intangible assets 0.1 0.0
-------------------------------------------------------------------------------
Proceeds from sale of investments 0.0 0.0
-------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES 580.8 -6.6 -9.2
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
-------------------------------------------------------------------------------
Share-option plans exercised 0.8 0.4 0.6
-------------------------------------------------------------------------------
Proceeds from borrowing 14.6 19.4 19.4
-------------------------------------------------------------------------------
Repayment of borrowing -17.5 -16.6 -16.6
-------------------------------------------------------------------------------
Payment of finance liabilities -1.1 -1.4 -1.8
-------------------------------------------------------------------------------
Dividend paid and repayment of capital -5.3 -2.6 -2.6
-------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES -8.4 -0.8 -1.0
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
NET CHANGE IN CASH AND CASH EQUIVALENTS 574.2 -2.3 0.3
-------------------------------------------------------------------------------
Cash and cash equivalents at beginning of period 43.3 43.0 43.0
-------------------------------------------------------------------------------
Cash and cash equivalents at end of period 617.5 40.7 43.3
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (MEUR)
---------------------------------------------------
A = Share capital
---------------------------------------------------
B = Invested non-restricted equity fund
---------------------------------------------------
C = Translation difference
---------------------------------------------------
D = Retained earnings
---------------------------------------------------
E = Non-controlling interests
---------------------------------------------------
F = Total equity
---------------------------------------------------
A B C D E F
-------------------------------------------------------------------------------
Shareholders equity on Jan. 1, 2014 12.9 24.5 0.6 43.7 81.7
-------------------------------------------------------------------------------
Comprehensive income for the period
-------------------------------------------------------------------------------
Profit for the period 6.2 6.2
-------------------------------------------------------------------------------
Exchange differences on translating foreign 0.4 0.4
operations
-------------------------------------------------------------------------------
Total comprehensive income for the period 0.4 6.2 6.6
-------------------------------------------------------------------------------
Transactions between the shareholders
-------------------------------------------------------------------------------
Distribution of dividend -2.6 -2.6
-------------------------------------------------------------------------------
Share option plans exercised 0.4 0.4
-------------------------------------------------------------------------------
Share-related compensation 0.1 0.1
-------------------------------------------------------------------------------
Total transactions between the shareholders 0.4 -2.5 -2.1
-------------------------------------------------------------------------------
Other changes -0.3 -0.3
-------------------------------------------------------------------------------
Shareholders equity on Sep. 30, 2014 12.9 24.9 1.0 47.0 85.9
-------------------------------------------------------------------------------
A B C D E F
-------------------------------------------------------------------------------
Shareholders equity on Jan. 1, 2015 12.9 25.1 1.5 53.8 93.4
-------------------------------------------------------------------------------
Comprehensive income for the period
-------------------------------------------------------------------------------
Profit for the period 539.6 539.6
-------------------------------------------------------------------------------
Exchange differences on translating foreign 0.1 0.1
operations
-------------------------------------------------------------------------------
Total comprehensive income for the period 0.1 539.6 539.7
-------------------------------------------------------------------------------
Transactions between the shareholders
-------------------------------------------------------------------------------
Distribution of dividend -5.3 -5.3
-------------------------------------------------------------------------------
Share option plans exercised 0.8 0.8
-------------------------------------------------------------------------------
Share-related compensation 0.1 0.1
-------------------------------------------------------------------------------
Total transactions between the shareholders 0.8 -5.2 -4.4
-------------------------------------------------------------------------------
Other changes -0.5 1.1 0.6
-------------------------------------------------------------------------------
Shareholders equity on Sep. 30, 2015 12.9 25.9 1.2 589.3 629.3
-------------------------------------------------------------------------------
NOTES TO THE INTERIM FINANCIAL REPORTING
ACCOUNTING PRINCIPLES FOR THE INTERIM FINANCIAL REPORTING:
The Interim Report has been prepared in accordance with IAS 34 Interim Financial
Reporting. Bittium Corporation has applied the same accounting principles in the
preparation of this Interim Report as in its Financial Statements for 2014,
except for the adoption of new standards and interpretations effective during
2015. The changes did not have material impact on the Interim Report.
SEGMENT-INFORMATION (MEUR)
Bittium Corporation does not have segments that require reporting according to
IFRS 8 standard.
NET SALES OF GEOGRAPHICAL AREAS (MEUR) 1-9/2015 1-9/2014 1-12/2014
9 months 9 months 12 months
-------------------------------------------------------------------
Net sales
-------------------------------------------------------------------
Europe 38.3 34.5 49.8
-------------------------------------------------------------------
Americas 3.1 2.0 2.5
-------------------------------------------------------------------
Asia 0.2 0.1 0.4
-------------------------------------------------------------------
Net sales total 41.6 36.6 52.7
-------------------------------------------------------------------
RELATED PARTY TRANSACTIONS 1-9/2015 1-9/2014 1-12/2014
9 months 9 months 12 months
-------------------------------------------------------------------------------
Employee benefits for key management and stock 1.3 0.9 1.1
options expenses total, continuing operations
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF 7-9/2015 4-6/2015 1-3/2015 10-12/2014 7-9/2014
COMPREHENSIVE INCOME BY QUARTER
(MEUR) 3 months 3 months 3 months 3 months 3 months
Continuing operations
-------------------------------------------------------------------------------
NET SALES 11.1 15.3 15.1 16.1 10.0
-------------------------------------------------------------------------------
Other operating income 0.3 0.4 0.3 0.5 0.3
-------------------------------------------------------------------------------
Change in work in progress and 0.0 0.0 0.0 0.0 0.0
finished goods
-------------------------------------------------------------------------------
Work performed by the
undertaking for its own purpose 0.0 0.0 0.1 0.0 0.0
and capitalized
-------------------------------------------------------------------------------
Raw materials -0.8 -1.4 -2.4 -2.1 -0.9
-------------------------------------------------------------------------------
Personnel expenses -7.0 -8.5 -8.4 -8.2 -6.1
-------------------------------------------------------------------------------
Depreciation -0.6 -0.6 -0.6 -0.5 -0.6
-------------------------------------------------------------------------------
Other operating expenses -3.1 -4.2 -3.7 -4.0 -1.7
-------------------------------------------------------------------------------
OPERATING PROFIT (LOSS) 0.0 1.0 0.5 1.8 1.1
-------------------------------------------------------------------------------
Financial income and expenses 0.1 -0.2 -0.1 -0.2 0.2
-------------------------------------------------------------------------------
PROFIT BEFORE TAX 0.1 0.8 0.4 1.6 1.2
-------------------------------------------------------------------------------
Income tax 0.0 -0.0 -0.0 0.7 -0.1
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD FROM 0.1 0.8 0.4 2.4 1.2
CONTINUING OPERATIONS
-------------------------------------------------------------------------------
Discontinued operations
-------------------------------------------------------------------------------
Profit for the period from 534.6 2.3 1.5 4.0 1.4
discontinued operations
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 534.7 3.1 1.8 6.4 2.6
-------------------------------------------------------------------------------
Other comprehensive income -0.7 -0.5 1.2 -0.1 0.2
-------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR 534.0 2.6 3.1 6.3 2.8
THE PERIOD
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Profit for the period
attributable to:
-------------------------------------------------------------------------------
Equity holders of the parent 534.7 3.1 1.8 6.4 2.6
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
Total comprehensive income for
the period attributable to:
-------------------------------------------------------------------------------
Equity holders of the parent 534.0 2.6 3.1 6.3 2.8
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
CONSOLIDATED Sep. Jun. Mar. Dec. Sep.
STATEMENT OF 30, 2015 30, 2015 31, 2015 31, 2014 30, 2014
FINANCIAL
POSITION (MEUR)
-------------------------------------------------------------------------------
ASSETS
-------------------------------------------------------------------------------
Non-current
assets
-------------------------------------------------------------------------------
Property,
plant and 3.8 3.9 10.8 10.7 9.2
equipment
-------------------------------------------------------------------------------
Goodwill 1.4 1.4 20.6 19.3 19.4
-------------------------------------------------------------------------------
Intangible 7.2 6.7 18.2 17.0 16.8
assets
-------------------------------------------------------------------------------
Other 0.1 0.1 0.1 0.1 0.1
financial assets
-------------------------------------------------------------------------------
Deferred tax 0.9 0.9 1.5 1.7 1.6
assets
-------------------------------------------------------------------------------
Non-current 13.5 13.1 51.3 48.8 47.1
assets total
-------------------------------------------------------------------------------
Current assets
-------------------------------------------------------------------------------
Inventories 1.4 1.8 1.6 2.2 1.5
-------------------------------------------------------------------------------
Trade and
other 15.1 22.0 69.0 72.5 60.9
receivables
-------------------------------------------------------------------------------
Financial
assets at fair 65.8 15.9 21.1 21.0 20.9
value through
profit or loss
-------------------------------------------------------------------------------
Cash and short 551.7 6.2 29.4 22.3 19.8
term deposits
-------------------------------------------------------------------------------
Current assets 634.0 45.8 121.1 118.0 103.1
total
-------------------------------------------------------------------------------
Assets
classified as 117.3
held for sale
-------------------------------------------------------------------------------
TOTAL ASSETS 647.5 176.2 172.4 166.8 150.2
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
EQUITY AND
LIABILITIES
-------------------------------------------------------------------------------
Equity
attributable to
equity holders
of the parent
-------------------------------------------------------------------------------
Share capital 12.9 12.9 12.9 12.9 12.9
-------------------------------------------------------------------------------
Invested non-
restricted 25.9 25.8 25.6 25.1 24.9
equity fund
-------------------------------------------------------------------------------
Translation 1.2 2.3 2.8 1.5 1.0
difference
-------------------------------------------------------------------------------
Retained 589.3 53.5 55.7 53.8 47.0
earnings
-------------------------------------------------------------------------------
Non-
controlling
interests
-------------------------------------------------------------------------------
Total equity 629.3 94.5 97.0 93.4 85.9
-------------------------------------------------------------------------------
Non-current
liabilities
-------------------------------------------------------------------------------
Deferred tax 0.1 0.1 0.8 0.5 0.5
liabilities
-------------------------------------------------------------------------------
Pension 3.0 3.0 2.2
obligations
-------------------------------------------------------------------------------
Provisions 1.2 0.2 0.2 0.2 0.2
-------------------------------------------------------------------------------
Interest-
bearing 0.7 3.7 4.1 3.8 3.0
liabilities
-------------------------------------------------------------------------------
Non-current
liabilities 2.0 1.0 8.1 7.6 5.9
total
-------------------------------------------------------------------------------
Current
liabilities
-------------------------------------------------------------------------------
Trade and 13.5 16.4 59.9 58.5 51.2
other payables
-------------------------------------------------------------------------------
Financial
liabilities at
fair value 0.0 0.2 0.2 0.4
through profit
or loss
-------------------------------------------------------------------------------
Provisions 2.0 2.2 2.7 2.6 2.5
-------------------------------------------------------------------------------
Interest-
bearing loans 0.7 6.7 4.6 4.5 4.3
and borrowings
-------------------------------------------------------------------------------
Current
liabilities 16.2 25.2 67.4 65.8 58.3
total
-------------------------------------------------------------------------------
Total 18.2 26.2 75.4 73.4 64.3
liabilities
-------------------------------------------------------------------------------
Liabilities
classified as 55.4
held for sale
-------------------------------------------------------------------------------
TOTAL EQUITY AND 647.5 176.2 172.4 166.8 150.2
LIABILITIES
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH 7-9/2015 4-6/2015 1-3/2015 10-12/2014 7-9/2014
FLOWS BY QUARTER
3 months 3 months 3 months 3 months 3 months
-------------------------------------------------------------------------------
Net cash from operating 3.1 -12.2 10.9 5.4 20.5
activities
-------------------------------------------------------------------------------
Net cash from investing 587.4 -2.5 -4.1 -2.6 -3.9
activities
-------------------------------------------------------------------------------
Net cash from financing -14.9 6.1 0.4 -0.2 -6.7
activities
-------------------------------------------------------------------------------
Net change in cash and cash 575.5 -8.6 7.3 2.5 9.8
equivalents
-------------------------------------------------------------------------------
FINANCIAL PERFORMANCE RELATED RATIOS 1-9/2015 1-9/2014 1-12/2014
9 months 9 months 12 months
-------------------------------------------------------------------------------
STATEMENT OF COMPREHENSIVE INCOME (MEUR)
-------------------------------------------------------------------------------
Net sales 41.6 36.6 52.7
-------------------------------------------------------------------------------
Operating profit (loss) 1.5 -1.0 0.8
-------------------------------------------------------------------------------
Operating profit (loss), % of net sales 3.6 -2.7 1.5
-------------------------------------------------------------------------------
Profit before taxes 1.2 -1.0 0.6
-------------------------------------------------------------------------------
Profit before taxes, % of net sales 2.9 -2.7 1.2
-------------------------------------------------------------------------------
Profit for the period from continuing operations 1.2 -1.1 1.3
-------------------------------------------------------------------------------
PROFITABILITY AND OTHER KEY FIGURES
-------------------------------------------------------------------------------
Interest-bearing net liabilities, (MEUR) -616.1 -33.4 -35.0
-------------------------------------------------------------------------------
Net gearing, -% -97.9 -38.9 -37.4
-------------------------------------------------------------------------------
Equity ratio, % 97.9 64.0 62.3
-------------------------------------------------------------------------------
Gross investments, (MEUR) 6.3 3.5 4.5
-------------------------------------------------------------------------------
Average personnel during the period, continuing 510 489 486
operations
-------------------------------------------------------------------------------
Personnel at the period end, continuing operations 510 476 474
-------------------------------------------------------------------------------
Average personnel during the period, discontinued 1182 1222
operations
-------------------------------------------------------------------------------
Personnel at the period end, discontinued 1234 1330
operations
-------------------------------------------------------------------------------
Average personnel during the period, jointly owned 365 380
company - discontinued operations
-------------------------------------------------------------------------------
Personnel at the period end, jointly owned company 407 431
- discontinued operations
-------------------------------------------------------------------------------
AMOUNT OF SHARE ISSUE ADJUSTMENT Sep. 30, 2015 Sep. 30, 2014 Dec. 31, 2014
(1,000 pcs)
-------------------------------------------------------------------------------
At the end of period 132 818 131 242 131 493
-------------------------------------------------------------------------------
Average for the period 132 121 130 868 130 975
-------------------------------------------------------------------------------
Average for the period diluted with 132 322 131 604 131 663
stock options
-------------------------------------------------------------------------------
STOCK-RELATED FINANCIAL RATIOS (EUR) 1-9/2015 1-9/2014 1-12/2014
9 months 9 months 12 months
-------------------------------------------------------------------------------
Earnings per share from continuing operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.009 -0.008 0.010
-------------------------------------------------------------------------------
Diluted earnings per share 0.009 -0.008 0.010
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from discontinued operations,
EUR
-------------------------------------------------------------------------------
Basic earnings per share 4.075 0.055 0.086
-------------------------------------------------------------------------------
Diluted earnings per share 4.069 0.055 0.085
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from continuing and
discontinued operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 4.084 0.047 0.096
-------------------------------------------------------------------------------
Diluted earnings per share 4.078 0.047 0.095
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Equity *) per share 4.74 0.65 0.71
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
*) Equity attributable to equity holders of the
parent
-------------------------------------------------------------------------------
MARKET VALUES OF SHARES (EUR) 1-9/2015 1-9/2014 1-12/2014 9 months 9 months 12 months
------------------------------------------------------------------
Highest 5.30 3.23 3.83
------------------------------------------------------------------
Lowest 3.27 2.30 2.30
------------------------------------------------------------------
Average 4.52 2.70 2.85
------------------------------------------------------------------
At the end of period 5.02 2.91 3.36
------------------------------------------------------------------
------------------------------------------------------------------
Market value of the stock, (MEUR) 666.7 381.9 441.8
------------------------------------------------------------------
Trading value of shares, (MEUR) 281.0 139.6 188.0
------------------------------------------------------------------
Number of shares traded, (1,000 pcs) 62 218 51 663 66 019
------------------------------------------------------------------
Related to average number of shares % 47.1 39.5 50.4
------------------------------------------------------------------
SECURITIES AND CONTINGENT Sep. 30, 2015 Sep. 30, 2014 Dec. 31, 2014
LIABILITIES (MEUR)
-------------------------------------------------------------------------------
AGAINST OWN LIABILITIES
-------------------------------------------------------------------------------
Floating charges 3.0 1.0 1.0
-------------------------------------------------------------------------------
Guarantees 3.6 15.3 6.4
-------------------------------------------------------------------------------
Rental liabilities
-------------------------------------------------------------------------------
Falling due in the next year 2.3 7.4 7.2
-------------------------------------------------------------------------------
Falling due after one year 2.5 14.3 13.0
-------------------------------------------------------------------------------
Other contractual liabilities
-------------------------------------------------------------------------------
Falling due in the next year 2.3 2.0 2.1
-------------------------------------------------------------------------------
Falling due after one year 0.4 0.6 0.7
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Mortgages are pledged for 0.0 1.5 2.6
liabilities totaled
-------------------------------------------------------------------------------
NOMINAL VALUE OF CURRENCY Sep. 30, 2015 Sep. 30, 2014 Dec. 31, 2014
DERIVATIVES (MEUR)
-------------------------------------------------------------------------------
Foreign exchange forward contracts
-------------------------------------------------------------------------------
Market value 0.0 -0.0 -0.1
-------------------------------------------------------------------------------
Nominal value 0.0 3.0 3.0
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Purchased currency options
-------------------------------------------------------------------------------
Market value 0.0 0.0 0.0
-------------------------------------------------------------------------------
Nominal value 4.0 5.0 5.0
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Sold currency options
-------------------------------------------------------------------------------
Market value -0.1 -0.3 -0.1
-------------------------------------------------------------------------------
Nominal value 8.0 8.0 10.0
-------------------------------------------------------------------------------
[HUG#1964239]
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