2014-04-30 07:00:00 CEST
2014-04-30 07:01:02 CEST
REGULATED INFORMATION
Elektrobit Oyj - Interim report (Q1 and Q3)
Elektrobit Corporation's (EB) interim report January-March 2014
Stock exchange release
Free for publication on April 30, 2014 at 8.00 a.m. (CEST+1)
Elektrobit Corporation's (EB) interim report January-March 2014
IN JANUARY-MARCH 2014 NET SALES GREW AND OPERATING PROFIT IMPROVED FROM THE
PREVIOUS YEAR
The 2013 figures presented in comparison in this interim report include the
figures of Continuing Operations only.
SUMMARY JANUARY - MARCH 2014
* Net sales of January - March 2014 grew to EUR 51.7 million (EUR 46.2
million, 1Q 2013), representing an increase of 11.8 % year-on-year.
* Operating profit was EUR 1.9 million (EUR 0.7 million, 1Q 2013, including
non-recurring costs of approximately EUR 0.8 million resulting from the cost
saving measures in the Wireless Business Segment).
* Net cash flow was EUR -0.5 million (EUR 29.3 million, 1Q 2013, including
non-recurring net cash flow of about EUR 28 million resulting from the sale
of the Test Tools product business).
* Earnings per share were EUR 0.013 (EUR 0.005, 1Q 2013).
* The number of EB's shares increased during the reporting period by
altogether 508 697 new shares subscribed by virtue of the stock option
rights 2008A and 2008B. At the end of the period, the number of shares in
Elektrobit Corporation totaled 130 609 572.
Group (MEUR) 1Q 14 1Q 13 2013
------------------------------------------------------------------------
NET SALES 51.7 46.2 199.3
------------------------------------------------------------------------
Change of net sales, % 11.8 % 8.3 % 14.6 %
------------------------------------------------------------------------
OPERATING PROFIT / LOSS 1.9 0.7 8.1
------------------------------------------------------------------------
Operating profit / loss, % of net sales 3.7 % 1.5 % 4.1 %
------------------------------------------------------------------------
Operating profit /loss without non-recurring items 1.9 1.5 9.0
------------------------------------------------------------------------
EBITDA 4.1 2.9 17.2
------------------------------------------------------------------------
CASH AND OTHER LIQUID ASSETS 42.5 43.6 43.0
------------------------------------------------------------------------
EQUITY RATIO (%) 64.8 % 63.1 % 65.1 %
------------------------------------------------------------------------
EARNINGS PER SHARE (EUR) 0.013 0.005 0.051
------------------------------------------------------------------------
Automotive Business Segment (MEUR) 1Q 14 1Q 13 2013
-------------------------------------------------------------
NET SALES 37.5 30.5 138.3
-------------------------------------------------------------
Change of net sales, % 22.9 % 15.6 % 25.0 %
-------------------------------------------------------------
OPERATING PROFIT / LOSS 2.9 1.1 8.5
-------------------------------------------------------------
Operating profit / loss, % of net sales 7.7 % 3.7 % 6.2 %
-------------------------------------------------------------
EBITDA 4.5 2.5 14.6
-------------------------------------------------------------
Wireless Business Segment (MEUR) 1Q 14 1Q 13 2013
-------------------------------------------------------------------------
NET SALES 14.2 15.8 61.2
-------------------------------------------------------------------------
Change of net sales, % -10.1 % -4.0 % -3.7 %
-------------------------------------------------------------------------
OPERATING PROFIT / LOSS -1.1 -0.4 -0.5
-------------------------------------------------------------------------
Operating profit / loss, % of net sales -7.8 % -2.6 % -0.8%
-------------------------------------------------------------------------
Operating profit /loss without non-recurring items -1.1 0.4 0.4
-------------------------------------------------------------------------
EBITDA -0.5 0.4 2.5
-------------------------------------------------------------------------
EB'S CEO JUKKA HARJU"EB's net sales in the first quarter grew by 11.8 per cent year-on-year to EUR
51.7 million. Operating profit improved and was EUR 1.9 million. The reason for
the improved net sales and operating profit was the good development of
Automotive Business Segment. The operating result in the Wireless Business
Segment was negative and remained below our target.
In Automotive Business Segment, the demand for EB's software products and R&D
services remained good and net sales grew strongly by 22.9 % from the previous
year. Operating profit improved and was 7.7 % of net sales.
The net sales in Wireless Business Segment decreased by 10.1 % from the previous
year due to the decreased demand for R&D services for mobile telecommunications
network equipment. Due to the weakened order book for R&D services for the next
few months, EB has started personnel negotiations with its personnel in Wireless
Business Segment in Finland to achieve cost savings. An important objective of
EB is to bring its products to the global defense and other authorities markets,
and to start gradually generating net sales from these markets from the latter
half of 2014 onwards. During the first quarter EB delivered a batch of special
terminal products to a customer abroad, and received several small orders for
its voice over IP phone system products, mainly intended for defense forces'
test and evaluation purposes, from customers in Europe and in the USA.
In 2014 our main target is to grow net sales and operating profit from the
previous year."
OUTLOOK FOR 2014
EB expects for the year 2014 that net sales and operating result will grow from
the previous year (net sales of EUR 199.3 million and operating profit of EUR
8.1 million, in 2013). Net sales growth rate in 2014 is expected to be slower
than in the previous year (net sales growth 14.6 %, 2013). Net sales and
operating result are expected to mainly accumulate during the latter half of the
year mostly due to the seasonality factors of Automotive Business Segment.
The growth of net sales and operating result in 2014 is expected to come mainly
or wholly from the Automotive Business Segment, where the demand for EB's
software solutions is expected to remain good. The demand for R&D services in
Wireless Business Segment is driven by the implementations of LTE (Long Term
Evolution) technology and by the growing need to wirelessly connect various
consumer and professional devices to other equipment. The demand for R&D
services in the mobile communication market is expected to decrease slightly
from the previous year. EB aims at bringing its Wireless Business Segment's
products to the global defense and other authority markets, and expects to start
gradually generating net sales from these markets from the latter half of 2014
onwards.
More specific market outlook is presented under sections "Market outlook for the
Automotive Business Segment" and "Market outlook for the Wireless Business
Segment".
The profit outlook for the year 2014 does not include possible non-recurring
income or costs related to the reorganization cases of TerreStar Networks Inc.
More information about the reorganization cases of TerreStar Networks and the
amount of the receivables and collecting the receivables as well as other
uncertainties regarding the outlook is presented in the "Identified Risks and
Uncertainties" and in the Report by the Board of Directors available at
http://annualreport.elektrobit.com.
INVITATION TO A PRESS CONFERENCE
EB will hold a press conference on the January-March 2014 Interim Report for
media, analysts and institutional investors in Finland, Helsinki, in Restaurant
Savoy, Eteläesplanadi 14, on Wednesday, April 30, 2014, at 11.00 a.m. (CEST+1).
The conference will also be held as a conference call and the presentation will
be shown simultaneously in the Internet through WebEx. The conference will be
held in English. For more information please go to
www.elektrobit.com/investors.
ELEKTROBIT CORPORATION (EB)
EB creates advanced technology and turns it into enriching end-user experiences.
EB is specialized in demanding embedded software and hardware solutions for
wireless and automotive industries. The net sales in 2013 totaled EUR 199.3
million and operating profit of EUR 8.1 million, in 2013. Elektrobit Corporation
is listed on NASDAQ OMX Helsinki. www.elektrobit.com.
ELEKTROBIT CORPORATION (EB) INTERIM REPORT JANUARY-MARCH 2014
2013 figures presented in comparison in this interim report include only figures
of Continuing Operations.
FINANCIAL PERFORMANCE DURING JANUARY-MARCH 2014
EB's net sales during January-March 2014 grew by 11.8 per cent year-on-year to
EUR 51.7 million (EUR 46.2 million, 1-3 2013). Operating profit was EUR 1.9
million (EUR 0.7 million, 1-3 2013, including the non-recurring cost of
approximately EUR 0.8 million resulting from the cost saving measures in the
Wireless Business Segment).
Net sales of Automotive Business Segment in January-March 2014 grew to EUR 37.5
million (EUR 30.5 million, 1-3 2013), representing 22.9 per cent growth year-on-
year. Operating profit improved from the previous year and was EUR 2.9 million
(EUR 1.1 million, 1-3 2013). The demand for EB's software products and R&D
services in Automotive Business Segment remained good, including the jointly
owned company e.solutions GmbH. In addition to the growth of net sales, the
improvement of the operating profit resulted from the growth of software license
sales especially for the in-car navigation software and lower R&D investments
than in the previous year.
The Wireless Business Segment's net sales in January-March 2013 decreased by
10.1 per cent year-on-year, to EUR 14.2 million (EUR 15.8 million, 1-3 2012).
The share of the product based net sales was EUR 3.6 million, which resulted
mainly from the product deliveries of the tactical communication system to
Finnish Defence Forces and from the delivery of a batch of special terminal
products to one customer abroad for the authority use. The operating loss of the
Wireless Business Segment in January-March 2014 was EUR -1.1 million (EUR -0.4
million, 1-3 2013, including the non-recurring cost of approximately EUR 0.8
million resulting from the cost saving measures in Wireless Business Segment).
The decrease in the net sales year-on-year and lower than expected net sales
and operating result were due to the decline in the demand for R&D services for
mobile telecommunications network equipment, delays in acquiring and starting
new R&D service projects and delays in some product deliveries.
CONSOLIDATED INCOME STATEMENT (MEUR) 1-3 2014 1-3 2013
3 months 3 months
-----------------------------------------------------------------------------
CONTINUING OPERATIONS
-----------------------------------------------------------------------------
Net sales 51.7 46.2
-----------------------------------------------------------------------------
Operating profit / loss 1.9 0.7
-----------------------------------------------------------------------------
Financial income and expenses 0.0 -0.1
-----------------------------------------------------------------------------
Result before tax 1.9 0.6
-----------------------------------------------------------------------------
RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS 1.7 0.6
-----------------------------------------------------------------------------
RESULT FOR THE PERIOD FROM DISCONTINUING OPERATIONS 23.6
-----------------------------------------------------------------------------
RESULT FOR THE PERIOD 1.7 24.2
-----------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1.6 24.2
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Result for the period attributable to:
-----------------------------------------------------------------------------
Equity holders of the parent 1.7 24.2
-----------------------------------------------------------------------------
Non-controlling interests
-----------------------------------------------------------------------------
Total comprehensive income for the period attributable to:
-----------------------------------------------------------------------------
Equity holder of the parent 1.6 24.2
-----------------------------------------------------------------------------
Non-controlling interests
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Earnings per share from continuing operations, EUR 0.013 0.005
-----------------------------------------------------------------------------
* Cash flow from operating activities was EUR -5.7 million (EUR 1.3 million,
1-3 2013).
* Net cash flow was EUR -0.5 million (EUR 29.3 million, 1-3 2013, including
non-recurring net cash flow of about EUR 28 million resulting from the sale
of the Test Tools product business).
* Equity ratio was 64.8% (63.1%, March 31, 2013).
* Net gearing was -37.2% (-27.5%, March 31, 2013).
QUARTERLY FIGURES
Elektrobit Group's net sales and operating result, MEUR:
1Q 14 4Q 13 3Q 13 2Q 13 1Q 13
-------------------------------------------------------------------------------
Net sales 51.7 59.5 45.7 47.9 46.2
-------------------------------------------------------------------------------
Operating profit (loss) 1.9 5.7 1.0 0.7 0.7
-------------------------------------------------------------------------------
Operating profit (loss) without non-recurring 1.9 5.7 1.0 0.7 1.5
costs
-------------------------------------------------------------------------------
Result before taxes 1.9 5.5 0.9 0.2 0.6
-------------------------------------------------------------------------------
Result for the period 1.7 5.0 0.8 0.2 0.6
-------------------------------------------------------------------------------
Non-recurring items are exceptional gains and costs 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 2013 Wireless Business Segment reported non-recurring cost of approximately
EUR 0.8 million resulting from the cost saving measures in the Wireless Business
Segment in the first quarter of 2013.
Net sales and operating profit development by Business Segments and other
businesses, MEUR:
1Q 14 4Q 13 3Q 13 2Q 13 1Q 13
--------------------------------------------------------------
Automotive
Net sales to external customers 37.5 41.1 34.1 32.5 30.5
Net sales to other segments 0.0 0.0 0.0 0.1 0.0
Operating profit (loss) 2.9 5.4 1.9 0.1 1.1
--------------------------------------------------------------
Wireless
Net sales to external customers 14.2 18.3 11.5 15.4 15.8
Net sales to other segments 0.0 0.0 0.0 0.0 0.0
Operating profit (loss) -1.1 0.3 -0.9 0.6 -0.4
--------------------------------------------------------------
Other businesses
Net sales to external customers 0.0 0.0 0.0 0.0 0.0
Operating profit (loss) 0.1 0.0 0.0 0.1 -0.0
--------------------------------------------------------------
Total
Net sales 51.7 59.5 45.7 47.9 46.2
Operating profit (loss) 1.9 5.7 1.0 0.7 0.7
--------------------------------------------------------------
The distribution of net sales by market areas, MEUR and %:
1Q 14 4Q 13 3Q 13 2Q 13 1Q 13
--------------------------------------------
Asia 2.5 2.3 1.9 1.7 1.9
4.9 % 3.9 % 4.3 % 3.6 % 4.2 %
--------------------------------------------
Americas 7.2 8.0 6.0 6.4 6.2
13.8 % 13.4 % 13.2 % 13.4 % 13.3 %
--------------------------------------------
Europe 42.0 49.2 37.7 39.7 38.1
81.3 % 82.7 % 82.5 % 83.0 % 82.5 %
--------------------------------------------
SIGNIFICANT EVENTS DURING THE REPORTING PERIOD
A total of 508,697 new shares were subscribed for between December 5, 2013 and
January 28, 2014 by virtue of the stock option rights 2008A and 2008B. The share
subscription price, EUR 150,354.84 was recorded in the Company's invested non-
restricted equity fund. The increase in the number of the Company's shares was
entered into the Finnish Trade Register on February 10, 2014. The trading with
the registered shares started on February 11, 2014 as an additional lot of
Elektrobit Corporation's shares in NASDAQ OMX Helsinki Ltd. After the
registration of the new shares, the number of shares in Elektrobit Corporation's
totaled 130,609,572.
BUSINESS SEGMENTS' DEVELOPMENT DURING January-MARCH 2014 AND MARKET OUTLOOK
EB's reporting is based on two segments which are the Automotive and Wireless
Business Segments.
AUTOMOTIVE
In Automotive Business Segment EB offers software products and R&D services for
carmakers, car electronics suppliers and other suppliers to the automotive
industry. The offering includes in-car infotainment solutions, such as
navigation and human machine interfaces (HMI), as well as software for
electronic control units (ECU) and driver assistance (DA). By combining its
software products and R&D services, EB is creating unique, customized solutions
for the automotive industry. EB's software products are: EB street director
navigation software, EB GUIDE HMI development and speech dialogue platform, EB
tresos product line of software components used in ECUs and tools for their
configuration, and EB Assist, an extensive product line with tooling and a
software development kit for driver assistance solutions. These software
products generate license fees, often combined with supply of R&D services for
customized solutions.
EB and Audi's subsidiary, Audi Electronics Venture GmbH (AEV), have a jointly
owned company e.solutions GmbH that is currently developing infotainment
software and provides systems engineering and systems integration services for
Volkswagen Group car models. EB also delivers products and R&D services to the
joint venture. EB owns 51% of e.solutions GmbH and AEV 49%.
Development of the Automotive Business Segment in January - March 2014
EB's net sales in Automotive Business Segment continued its strong growth during
the first quarter of 2014 and amounted to EUR 37.5 million (EUR 30.5 million,
1-3 2013), representing a growth of 22.9 % year-on-year. Operating profit
improved and was EUR 2.9 million (EUR 1.1 million, 1-3 2013). The demand for
EB's software products and R&D services remained good in the Automotive Business
Segment, including the jointly owned company e.solutions GmbH. In addition to
the growth of the net sales, the improvement of the operating profit resulted
from the growth of software license sales especially for the in-car navigation
software and from lower R&D investments than in the previous year.
The R&D investments in the first quarter were EUR 2.5 million (EUR 3.7 million,
1-3 2013). The reason for the decrease in the R&D investments was the movement
of some product platforms from an initial investment phase towards a continuing
development phase.
EB and Universite de Sherbrooke in Quebec (Canada) presented urban concept
vehicle (Vehicle Urbain Electrique (VUE)) with autonomous driving technology at
2014 International CES in Las Vegas in January.
EB also announced to have developed breakthrough technology to help car makers
test complex driver assistance systems. EB Assist Car Data Recorder is a
measurement tool that allows product development engineers to record and
visualize data during test drives using a common tablet computer without
complicated cable installations, monitors or keyboards.
Automotive Business Segment Market Outlook
As the global economy is showing signs of recovery, the global car market is
expected to grow by 3% in 2014 according to the forecast made by VDA (Verband
der Automobilindustrie). For several years carmakers have continued to invest in
automotive software for new car models and the market for software products and
services is estimated to continue growing during 2014. The demand for EB's
products and services is estimated to develop positively year-on-year during
2014 in Automotive Business Segment.
The market for electronics and software for cars is estimated to continue
growing in a long term. The study "Future Industry Structure of Automotive
(FAST) Electronics 2025" from Berylls assumes a growth of automotive electronics
from EUR 215 billion in 2012 to EUR 456 billion in 2025 (CAGR 6%).
Growth in automotive software market is mainly driven by:
* The majority of in-vehicle innovations come from electronics and software.
Carmakers can develop more vehicle features and create product
differentiation as software innovation allows for great product innovation
jumps in the areas of comfort, information and entertainment, powertrain and
communication.
* The software and hardware in electronics solutions will be gradually
separated from each other in order to speed up the innovation and to improve
the quality and cost efficiency.
* Consumers expect in the car the same richness of features and user
experience they know from the internet and mobile devices, and therefore
infotainment systems become increasingly common in all car price categories.
* Mobile connectivity will become one of the fastest-growing Internet-
connected device platforms among other connected consumer electronics
devices, such as media tablets and smartphones. Gartner estimates that by
2016, the majority of car buyers in automotive markets like in the U.S. and
the Western Europe will view the availability of in-vehicle, web-enabled
dynamic content as a key buying criterion when considering a standard brand
car. This tipping point will be reached even sooner - during 2014 - for
premium-brand cars.
* Connected Car solutions and cloud connections enable bringing of new
applications and enhancements to car functions, for example real-time
traffic information or map updates for navigation. The increasing demand to
better integrate mobile devices with the car has been reflected in consumer
electronics companies such as Apples "CarPlay" or Google's announcement of
Open Automotive Alliance.
* New Active Safety Systems and Driver Assistance applications are being
brought to the market as automated driving is becoming one of the key trends
and an area with significant investments.
WIRELESS
In the Wireless Business Segment EB offers products and product platforms for
defense, public safety and other authorities markets as well as for industrial
use. Further EB offers product development services and customized solutions for
wireless communications markets and for companies needing wireless connectivity
for their products. EB's products in the Wireless Business Segment are the EB
Tactical Wireless IP Network for tactical communications, EB Tough VoIP for
tactical IP-based communication, EB Wideband COMINT Sensor for signals
intelligence. The product platforms are the Android-based EB Specialized Device
Platform and EB LTE Connectivity Module for specialized markets. For the latest
wireless technologies and applications EB offers a broad range of R&D services
such as consulting, integration, and development of software and hardware.
Development of the Wireless Business Segment in January - March 2014
Net sales of the Wireless Business Segment during the first quarter of 2014
decreased by 10.1 per cent year-on-year to EUR 14.2 million (EUR 15.8 million,
1-3 2013). The share of the product based net sales was EUR 3.6 million, which
resulted mainly from the product deliveries of the tactical communication system
to Finnish Defence Forces and from the delivery of a batch of special terminal
products to one customer abroad for the authority use.
Operating loss was EUR -1.1 million (EUR -0.4 million, 1-3 2013, including the
non-recurring cost of approximately EUR 0.8 million resulting from the cost
saving measures in Wireless Business Segment). The decrease in the net sales
year-on-year and lower than expected net sales and operating result were due to
the decline in the demand for the mobile telecommunications network equipment
R&D services, delays in acquiring and starting new R&D service projects and
delays in some product deliveries.
EB aims at bringing its products to the global defense and other authority
markets, and expects to start gradually generating net sales from these markets
from the latter half of 2014 onwards. During the first quarter EB delivered a
batch of special terminal devices to one customer abroad, and received several
small orders from customers in Europe and in the USA, mainly intended for
defense forces test and evaluation purposes, for its EB Tough VoIP phone system
products developed for defense use.
R&D investment in the first quarter was EUR 1.6 million (EUR 1.2 million,
1-3 2013). R&D investments were increased for products for the authorities use.
EB broadened its EB Specialized Device Platform (SDP) by introducing an Android-
based smart watch technology version. This customizable device platform enables
the delivery of complete product solutions to companies aspiring to extend the
reach of their brand and product offering to the smart watch market. The
platform has been used in the creation of the adidas miCoach SMART RUN premium
running smart watch, launched in November 2013.
Wireless Business Segment Market Outlook
In the Wireless Business Segment, EB's customers operate in various industries,
each of them having own industry specific factors driving the demand. A common
factor creating demand among the whole customer base is the introduction of new
technologies. In 2014 the implementation of LTE (Long Term Evolution) technology
is expected to continue to be important technological change driving the demand.
Due to the long history in developing smart phones and mobile communication
devices, EB 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.
Following factors are estimated to create demand for EB's products and services
in 2014 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 design. There is a wide range of frequencies allocated for LTE
globally thus creating a need to develop multiple products to cover the
market, and creating demand for R&D services for design of product variants.
* The trend of adopting new commercial technologies, such as LTE, and 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 EB's
specialized terminals, tablets and communication modules.
* The need for R&D services for connected devices for business or consumer
use, such as smart watch and other Wearable devices is evolving and creating
demand for customized solutions based on EB's product platforms.
* In the defense market's tactical communication the need for larger amounts
of information data grows, generating demand for broadband networks, such as
EB's customized IP (Internet Protocol) based tactical communications
solutions.
The general cost savings of the mobile telecommunications infrastructure
companies are expected to reflect as decrease in the demand for R&D services
despite of the base station development needs generated by the LTE technology.
EB aims at bringing its products to the global defense and other authorities
markets and expects to start gradually generating net sales from these markets
from the latter half of 2014 onwards. The public defense budget cuts affect
negatively on the demand for products and product development services in Europe
and also elsewhere in the world, and simultaneously increases the competition
between the suppliers.
The defense, national security 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.
RESEARCH AND DEVELOPMENT
EB continued its investments in R&D for automotive software products and tools
in Automotive Business Segment, and in products and product platforms for the
defense and public safety markets in Wireless Business Segment.
The total R&D investments during January-March 2014 were EUR 4.1 million (EUR
4.9 million, 1-3 2013), equaling 7.9% of the net sales (10.54%, 1-3 2013). The
share of R&D investments in Automotive Business Segment was EUR 2.5 million (EUR
3.7 million, 1-3 2013) and in Wireless Business Segment EUR 1.6 million (EUR
1.2 million, 1-3 2013).
EUR 0.2 million of R&D investments was capitalized (EUR 0.0 million,
1-13 2013). The amount of capitalized R&D investments at the end of March 2014
was EUR 11.8 million (EUR 13.1 million, 31.3.2013). A significant part of these
capitalizations is related to customer agreements in Automotive Business
Segment, where future license fees, based on the actual car delivery volumes,
are expected to accumulate in the coming years. Depreciations of R&D investments
were EUR 0.4 million during the reporting period (EUR 0.4 million, 1-3 2013).The total negative effect, caused from research and development investments,
their capitalizations and their depreciation, on EB's income statement in
January-March 2014 was EUR 4.3 million (EUR 5.3 million, 1-3 2013).
OUTLOOK FOR 2014
EB expects for the year 2014 that net sales and operating result will grow from
the previous year (net sales of EUR 199.3 million and operating profit of EUR
8.1 million, in 2013). Net sales growth rate in 2014 is expected to be slower
than in the previous year (net sales growth 14.6 %, 2013). Net sales and
operating result are expected to mainly cumulate during the latter half of the
year mostly due to the seasonality factors of Automotive Business Segment.
The growth of net sales and operating result in 2014 is expected to come mainly
or wholly from the Automotive Business Segment, where the demand for EB's
software solutions is expected to remain good. The demand for R&D services in
Wireless Business Segment is driven by the implementations of LTE (Long Term
Evolution) technology and by the growing need to wirelessly connect various
consumer and professional devices to other equipment. The demand for R&D
services in the mobile communication market is expected to decrease slightly
from the previous year. EB aims at bringing its Wireless Business Segment's
products to the global defense and other authority markets, and expects to start
gradually generating net sales from these markets from the latter half of 2014
onwards.
More specific market outlook is presented under sections "Market outlook for the
Automotive Business Segments" and "Market outlook for the Wireless Business
Segment".
The profit outlook for the year 2014 does not include possible non-recurring
income or costs related to the reorganization cases of TerreStar Networks Inc.
More information about the reorganization cases of TerreStar Networks and the
amount of the receivables and collecting the receivables as well as other
uncertainties regarding the outlook is presented in the "Identified Risks and
Uncertainties" and in the Report by the Board of Directors available at
http://annualreport.elektrobit.com.
RISKS AND UNCERTAINTIES
EB has identified a number of business, market and finance related risk factors
and uncertainties that can affect the level of sales and profits.
In April, according to the information EB has received, a supplier of
e.solutions GmbH, Parrot S.A, has filed a lawsuit against e.solutions in the
Tribunal de Commerce de Paris (Commercial Court Paris) seeking to collect
damages in the amount of approximately EUR 18.4 million for loss of profit and
reputational damage. Based on the e.solutions' initial legal analysis the claim
is without merit both in terms of the grounds and the amount of the claim. Based
on the current estimate, the legal proceedings will not cause any such financial
obligation to e.solutions or to EB that would affect EB's profit outlook and
financial position. It is possible that, based on later information, this view
may need to be reconsidered. At the worst, Parrot's claim could result
significant negative impact on e.solutions' and EB's profit, cash flow and
financial position. More information about the Parrot's lawsuit is presented in
the stock exchange release, published on April 4, 2014.
More short-term description of the risks and uncertainties are described in the
report by the Board of Directors 2013. More information about risks and
uncertainties are presented at the company's internet pages at
www.elektrobit.com.
STATEMENT OF FINANCIAL POSITION AND FINANCING
The figures presented in the statement of financial position of March 31, 2014,
are compared with the statement of the financial position of December 31, 2013
(MEUR).
31.3.2014 31.12.2013
----------------------------------------------------------------
Non-current assets 45.1 46.1
----------------------------------------------------------------
Current assets 98.8 98.2
----------------------------------------------------------------
Total assets 144.0 144.4
----------------------------------------------------------------
Share capital 12.9 12.9
----------------------------------------------------------------
Other equity 70.8 68.8
----------------------------------------------------------------
Total shareholders' equity 83.7 81.7
----------------------------------------------------------------
Non-current liabilities 6.1 6.1
----------------------------------------------------------------
Current liabilities 54.1 56.5
----------------------------------------------------------------
Total shareholders' equity and liabilities 144.0 144.4
----------------------------------------------------------------
The cash flows during the period under review:
--------------------------------------------------------------------
+ net profit +/- adjustment of accrual basis items EUR +4.5 million
--------------------------------------------------------------------
+/- change in net working capital EUR -9.4 million
--------------------------------------------------------------------
- interest, taxes and dividends EUR -0.8 million
--------------------------------------------------------------------
= cash generated from operations EUR -5.7 million
--------------------------------------------------------------------
- net cash used in investment activities EUR -1.0 million
--------------------------------------------------------------------
- net cash used in financing EUR +6.2 million
--------------------------------------------------------------------
= net change in cash and cash equivalents EUR -0.5 million
--------------------------------------------------------------------
The increase of the net working capital results mainly from the decrease in the
accounts payables and the decreased advance payments during the period under
review.
The amount of accounts receivable and other receivables, booked in current
receivables, was EUR 55.3 million (EUR 54.3 million on December 31, 2013).
Accounts payable and other payables, booked in interest-free current
liabilities, were EUR 45.8 million (EUR 54.5 million on December 31, 2013). The
amount of non-depreciated consolidation goodwill at the end of the period under
review was EUR 19.4 million (EUR 19.3 million on December 31, 2013).
The amount of gross investments in the period under review was EUR 1.1 million.
Net investments for the reporting period totaled EUR 1.1 million. The total
amount of depreciation during the period under review was EUR 2.2 million,
including EUR 0.2 million of depreciation owing to business acquisitions in
Automotive Business Segment.
The amount of interest-bearing debt, including finance lease liabilities, at
the end of the reporting period was EUR 11.4 million (EUR 5.3 million on
December 31, 2013). The distribution of net financing expenses on the income
statement was as follows:
----------------------------------------------------------------
interest dividend and other financial income EUR 0.1 million
----------------------------------------------------------------
interest expenses and other financial expenses EUR -0.1 million
----------------------------------------------------------------
foreign exchange gains and losses EUR -0.0 million
----------------------------------------------------------------
EB's equity ratio at the end of the period was 64.8% (65.1 % on December
31, 2013).
Cash and other liquid assets at the end of the reporting period were EUR 42.5
million (EUR 43.0 million on December 31, 2013). EB has from Nordea Bank plc a
committed credit facility agreement and a revolving credit facility agreement of
altogether EUR 20 million, valid until June 30, 2014. EUR 6.7 million of these
facilities was used at the end of the reporting period.
EB follows a hedging strategy, the objective of which is to ensure the margins
of business operations in changing market circumstances by minimizing the
influence of exchange rates. In accordance with the hedging strategy, the agreed
customer commitments net cash flow of the currency in question is hedged. The
net cash flow is determined on the basis of sales receivables, payables, the
order book and the budgeted net currency cash flow. The hedged foreign currency
exposure at the end of the review period was equivalent to 11.5 million.
PERSONNEL
The parent company of the group and its subsidiaries employed an average of
1663 people between January and March 2014. In addition, e.solutions GmbH, the
jointly owned company of EB and AUDI employed 337 people. At the end of March,
the parent company of the group and its subsidiaries had 1661 employees and
e.solutions GmbH 342 employees (1648 in group's parent company and subsidiaries
and e.solutions GmbH 321 at the end of 2013). A significant part of EB's
personnel are R&D engineers.
FLAGGING NOTIFICATIONS
There were no changes in the ownership during the period under review that would
have caused flagging notifications which are obligations for disclosure in
accordance with Chapter 2, section 9 of the Securities Market Act.
EVENTS AFTER THE REVIEW PERIOD
A total of 461,673 new shares in Elektrobit Corporation were subscribed between
February 11, 2014 and April 8, 2014 by virtue of the stock option rights 2008A
and 2008B. The share subscription price, EUR 145,158.51, 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
April 14, 2014. Trading with the newly registered shares started on April
15, 2014 as an additional lot of Elektrobit Corporation's shares in NASDAQ OMX
Helsinki Ltd. After the registration of the new shares, the number of shares in
Elektrobit Corporation's totals 131,071,245.
In April, according to the information EB has received, a supplier of
e.solutions GmbH, Parrot S.A, has filed a lawsuit against e.solutions in the
Tribunal de Commerce de Paris (Commercial Court Paris) seeking to collect
damages in the amount of approximately EUR 18.4 million for loss of profit and
reputational damage. Based on the e.solutions' initial legal analysis the claim
is without merit both in terms of the grounds and the amount of the claim. Based
on the current estimate, the legal proceedings will not cause any such financial
obligation to e.solutions or to EB that would affect EB's profit outlook and
financial position. It is possible that, based on later information, this view
may need to be reconsidered. At the worst, Parrot's claim could result
significant negative impact on e.solutions' and EB's profit, cash flow and
financial position. More information about the Parrot's lawsuit is presented in
the stock exchange release, published on April 4, 2014.
On April 30, 2014 EB has started personnel negotiations aiming to temporarily
lay off at the maximum of 90 persons in the Wireless Business Segment to adjust
its cost structure for the weakened order book for R&D services in the next few
months. With these temporary dismissals EB targets cost savings of approximately
EUR 0.8 million, which would materialize mainly during the third quarter of the
year. The decreased order book for R&D services for the next few months and the
targeted cost savings by the planned temporary layoffs are taken into account in
the company's outlook for 2014, presented in this interim report.
DECISIONS OF THE ANNUAL GENERAL MEETING
Annual general meeting held on April 10, 2014 decided on the following topics:
USE OF THE PROFITS SHOWN ON THE BALANCE SHEET AND PAYMENT OF DIVIDED
The Annual General Meeting decided in accordance with the proposal of the Board
of Directors to pay EUR 0.02 per share as dividend based on the balance sheet
adopted for the financial period January 1, 2013 - December 31, 2013. The
dividend was paid to the shareholders who were registered in the shareholders'
register maintained by Euroclear Finland Ltd on the dividend record date,
Tuesday, April 15, 2014. The dividend was paid on Thursday, April 24, 2014.
ELECTION AND REMUNERATION OF THE MEMBERS OF THE BOARD OF DIRECTORS
The Annual General Meeting decided that the Board of Directors shall comprise
five (5) members. Jorma Halonen, Juha Hulkko, Seppo Laine, Staffan Simberg and
Erkki Veikkolainen were elected members of the Board of Directors for a term of
office expiring at the end of the next Annual General Meeting.
At its assembly meeting held on April 10, 2014, the Board of Directors elected
Mr. Seppo Laine Chairman of the Board. Further, the Board resolved to keep the
Audit and Financial Committee with Mr. Staffan Simberg (Chairman of the
committee), Mr. Seppo Laine and Mr. Erkki Veikkolainen as committee members.
The following monthly remuneration shall be paid to the members of the Board of
Directors: to the chairman of the Board of Directors EUR 3,500 and to the other
members of the Board of Directors EUR 2,000 each. In addition, the members of
the Board of Directors are entitled to compensation for attending Board
Committee meetings as follows: the chairman of the Committee EUR 600 for each
meeting and other Committee members EUR 400 for each meeting. The members of the
Board of Directors, who also act as Board members of other companies belonging
to the Elektrobit Group, are also entitled to compensation for attending Board
meetings of such other group companies as follows: EUR 1,200 for each meeting.
Travel expenses of the members of the Board of Directors shall be reimbursed in
accordance with the Company's travel policy.
ELECTION AND REMUNERATION OF THE AUDITOR AND DEPUTY AUDITOR
Ernst & Young Ltd, authorized public accountants, was re-elected auditor of the
Company for a term of office ending at the end of the next Annual General
Meeting. Ernst & Young Ltd has notified that Mr. Juhani Rönkkö, authorized
public accountant, will act as responsible auditor. It was decided that the
remuneration to the auditor shall be paid against the auditor's reasonable
invoice.
AUTHORIZING THE BOARD OF DIRECTORS TO DECIDE ON THE REPURCHASE OF THE COMPANY'S
OWN SHARES
The General Meeting authorized the Board of Directors to decide on the
repurchase of the Company's own shares as follows.
The amount of own shares to be repurchased shall not exceed 12,500,000 shares,
which corresponds to approximately 9.57 per cent of all of the shares in the
company. Only the unrestricted equity of the company can be used to repurchase
own shares on the basis of the authorization. Own shares can be repurchased at a
price formed in public trading on the date of the repurchase or otherwise at a
price formed on the market. The Board of Directors decides how own shares will
be repurchased. Own shares can be repurchased using, inter alia, derivatives.
Own shares can be repurchased otherwise than in proportion to the shareholdings
of the shareholders (directed repurchase).
The authorization cancels the authorization given by the General Meeting on
April 11, 2013 to decide on the repurchase of the company's own shares. The
authorization is effective until June 30, 2015.
AUTHORIZING THE BOARD OF DIRECTORS TO DECIDE ON THE ISSUANCE OF SHARES AS WELL
AS THE ISSUANCE OF SPECIAL RIGHTS ENTITLING TO SHARES
The General meeting authorized the Board of Directors to decide on the issuance
of shares and other special rights entitling to shares referred to in chapter
10 section 1 of the Companies Act as follows.
The amount of shares to be issued shall not exceed 25,000,000 shares, which
corresponds to approximately 19.14 per cent of all of the shares in the company.
The Board of Directors decides on all the conditions of the issuance of shares
and of special rights entitling to shares. The authorization concerns both the
issuance of new shares as well as the transfer of treasury shares. The issuance
of shares and of special rights entitling to shares may be carried out in
deviation from the shareholders' pre-emptive rights (directed issue).
The authorization cancels the authorization given by the General Meeting on
April 11, 2013 to decide on the issuance of shares as well as the issuance of
other special rights entitling to shares referred to in Chapter 10 Section 1 of
the Companies Act. The authorization is effective until June 30, 2015.
Oulu April 30, 2014
Elektrobit Corporation
The Board of Members
Further Information:
Jukka Harju
CEO
Tel. +358 40 344 5466
Distribution:
NASDAQ OMX Helsinki
Major media
ELEKTROBIT CORPORATION (EB) CONDENSED FINANCIAL STATEMENTS and notes january -
march 2014
(unaudited)
The Interim Report has been prepared in accordance with IAS 34 Interim Financial
Reporting.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1-3/2014 1-3/2013 1-12/2013
(MEUR) 3 months 3 months 12 months
Continuing operations
-------------------------------------------------------------------------------
NET SALES 51.7 46.2 199.3
-------------------------------------------------------------------------------
Other operating income 0.6 0.9 3.5
-------------------------------------------------------------------------------
Change in work in progress and finished goods 0.0 0.1 -0.0
-------------------------------------------------------------------------------
Work performed by the undertaking for its own 0.0
purpose and capitalized
-------------------------------------------------------------------------------
Raw materials -5.1 -2.3 -12.4
-------------------------------------------------------------------------------
Personnel expenses -31.4 -28.9 -113.2
-------------------------------------------------------------------------------
Depreciation -2.2 -2.2 -9.0
-------------------------------------------------------------------------------
Other operating expenses -11.8 -13.2 -60.0
-------------------------------------------------------------------------------
OPERATING PROFIT (LOSS) 1.9 0.7 8.1
-------------------------------------------------------------------------------
Financial income and expenses 0.0 -0.1 -0.9
-------------------------------------------------------------------------------
PROFIT BEFORE TAX 1.9 0.6 7.2
-------------------------------------------------------------------------------
Income tax -0.2 -0.0 -0.6
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS 1.7 0.6 6.7
-------------------------------------------------------------------------------
Discontinued operations
-------------------------------------------------------------------------------
Profit for the year from discontinued operations 23.6 24.3
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 1.7 24.2 30.9
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Other comprehensive income:
-------------------------------------------------------------------------------
Items that will not be reclassified to statement
of income
-------------------------------------------------------------------------------
Re-measurement gains (losses) on defined 0.0
benefit plans
-------------------------------------------------------------------------------
Items that may be reclassified subsequently to the
statement of income
-------------------------------------------------------------------------------
Exchange differences on translating foreign -0.1 -0.0 -0.0
operations
-------------------------------------------------------------------------------
Other comprehensive income for the period total -0.1 -0.0 -0.0
-------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1.6 24.2 30.9
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Profit for the year attributable to
-------------------------------------------------------------------------------
Equity holders of the parent 1.7 24.2 30.9
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total comprehensive income for the period
attributable to
-------------------------------------------------------------------------------
Equity holders of the parent 1.6 24.2 30.9
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from continuing operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.013 0.005 0.051
-------------------------------------------------------------------------------
Diluted earnings per share 0.013 0.005 0.051
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from discontinued operations,
EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.182 0.188
-------------------------------------------------------------------------------
Diluted earnings per share 0.181 0.187
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from continuing and
discontinued operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.013 0.187 0.239
-------------------------------------------------------------------------------
Diluted earnings per share 0.013 0.186 0.238
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Average number of shares, 1000 pcs 130 378 129 413 129 528
-------------------------------------------------------------------------------
Average number of shares, diluted, 1000 pcs 131 290 130 325 130 092
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF March 31, 2014 March 31, 2013 Dec. 31, 2013
FINANCIAL POSITION
(MEUR)
-------------------------------------------------------------------------------
ASSETS
-------------------------------------------------------------------------------
Non-current assets
-------------------------------------------------------------------------------
Property, plant and equipment 9.3 8.6 9.7
-------------------------------------------------------------------------------
Goodwill 19.4 19.3 19.3
-------------------------------------------------------------------------------
Intangible assets 14.8 17.4 15.5
-------------------------------------------------------------------------------
Other financial assets 0.1 0.1 0.1
-------------------------------------------------------------------------------
Deferred tax assets 1.5 1.0 1.5
-------------------------------------------------------------------------------
Non-current assets total 45.1 46.5 46.1
-------------------------------------------------------------------------------
Current assets
-------------------------------------------------------------------------------
Inventories 0.9 0.5 0.8
-------------------------------------------------------------------------------
Trade and other receivables 55.3 59.9 54.3
-------------------------------------------------------------------------------
Financial assets at fair value 20.8 34.7 20.7
through profit or loss
-------------------------------------------------------------------------------
Cash and short term deposits 21.8 8.8 22.4
-------------------------------------------------------------------------------
Current assets total 98.8 104.0 98.2
-------------------------------------------------------------------------------
TOTAL ASSETS 144.0 150.5 144.4
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
EQUITY AND LIABILITIES
-------------------------------------------------------------------------------
Equity attributable to equity
holders of the parent
-------------------------------------------------------------------------------
Share capital 12.9 12.9 12.9
-------------------------------------------------------------------------------
Invested non-restricted equity 24.8 38.7 24.5
fund
-------------------------------------------------------------------------------
Translation difference 0.5 0.6 0.6
-------------------------------------------------------------------------------
Retained earnings 45.4 38.0 43.7
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
Total equity 83.7 90.2 81.7
-------------------------------------------------------------------------------
Non-current liabilities
-------------------------------------------------------------------------------
Deferred tax liabilities 0.5 0.5 0.5
-------------------------------------------------------------------------------
Pension obligations 2.1 2.0 2.1
-------------------------------------------------------------------------------
Provisions 0.5 0.4 0.3
-------------------------------------------------------------------------------
Interest-bearing liabilities 3.0 9.2 3.3
-------------------------------------------------------------------------------
Non-current liabilities total 6.1 12.1 6.1
-------------------------------------------------------------------------------
Current liabilities
-------------------------------------------------------------------------------
Trade and other payables 43.5 35.4 52.2
-------------------------------------------------------------------------------
Financial liabilities at fair 0.2
value through profit or loss
-------------------------------------------------------------------------------
Provisions 2.3 2.9 2.3
-------------------------------------------------------------------------------
Interest-bearing loans and 8.3 9.6 2.0
borrowings
-------------------------------------------------------------------------------
Current liabilities total 54.1 48.1 56.5
-------------------------------------------------------------------------------
Total liabilities 60.3 60.2 62.6
-------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 144.0 150.5 144.4
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS (MEUR) 1-3/2014 1-3/2013 1-12/2013
3 months 3 months 12 months
-------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
-------------------------------------------------------------------------------
Profit for the year from continuing operations 1.7 0.6 6.7
-------------------------------------------------------------------------------
Profit for the year from discontinued operations 23.6 24.3
-------------------------------------------------------------------------------
Adjustment of accrual basis items 2.8 -21.9 -13.3
-------------------------------------------------------------------------------
Change in net working capital -9.4 -1.1 18.7
-------------------------------------------------------------------------------
Interest paid on operating activities -0.0 -0.2 -1.3
-------------------------------------------------------------------------------
Interest received from operating activities 0.1 0.3 0.3
-------------------------------------------------------------------------------
Other financial income and expenses, net received 0.0
-------------------------------------------------------------------------------
Income taxes paid -0.9 -0.1 -0.7
-------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES -5.7 1.3 34.7
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
-------------------------------------------------------------------------------
Acquisition of business unit, net of cash acquired 29.2 30.0
-------------------------------------------------------------------------------
Purchase of property, plant and equipment -0.5 -0.8 -4.0
-------------------------------------------------------------------------------
Purchase of intangible assets -0.5 -0.7 -2.0
-------------------------------------------------------------------------------
Sale of property, plant and equipment 0.0 0.1 0.2
-------------------------------------------------------------------------------
Sale of intangible assets 0.0
-------------------------------------------------------------------------------
Proceeds from sale of investments 0.0
-------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES -1.0 27.8 24.4
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
-------------------------------------------------------------------------------
Share-option plans exercised 0.3 0.1
-------------------------------------------------------------------------------
Proceeds from borrowing 6.7 12.3 16.6
-------------------------------------------------------------------------------
Repayment of borrowing -0.3 -11.3 -28.4
-------------------------------------------------------------------------------
Payment of finance liabilities -0.5 -0.8 -3.1
-------------------------------------------------------------------------------
Dividend paid and repayment of capital -15.6
-------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES 6.2 0.2 -30.3
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
NET CHANGE IN CASH AND CASH EQUIVALENTS -0.5 29.3 28.7
-------------------------------------------------------------------------------
Cash and cash equivalents at beginning of period 43.0 14.3 14.3
-------------------------------------------------------------------------------
Cash and cash equivalents at end of period 42.5 43.6 43.0
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (MEUR)
-------------------------------------------------------------------
A = Share capital
-------------------------------------------------------------------
B = Invested non-restricted equity fund
-------------------------------------------------------------------
C = Translation difference
-------------------------------------------------------------------
D = Retained earnings
-------------------------------------------------------------------
F = Non-controlling interests
-------------------------------------------------------------------
G = Total equity
-------------------------------------------------------------------
A B C D E F
------------------------------------------------------------------------------
Shareholders equity on December 31, 2012, restated 12.9 38.7 0.6 14.3 66.6
------------------------------------------------------------------------------
Change in accounting policy (IAS 19) -0.6 -0.6
------------------------------------------------------------------------------
Shareholders equity on January 1, 2013 12.9 38.7 0.6 13.8 66.0
------------------------------------------------------------------------------
Comprehensive income for the period
------------------------------------------------------------------------------
Profit for the period 24.2 24.2
------------------------------------------------------------------------------
Exchange differences on translating foreign -0.0 -0.0
operations
------------------------------------------------------------------------------
Total comprehensive income for the period -0.0 24.2 24.2
------------------------------------------------------------------------------
Transactions between the shareholders
------------------------------------------------------------------------------
Share-related compensation 0.0 0.0
------------------------------------------------------------------------------
Other changes -0.0 -0.0
------------------------------------------------------------------------------
Shareholders equity on March 31, 2013 12.9 38.7 0.6 38.0 90.2
------------------------------------------------------------------------------
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 1.7 1.7
-------------------------------------------------------------------------
Exchange differences on translating foreign -0.1 -0.1
operations
-------------------------------------------------------------------------
Total comprehensive income for the period -0.1 1.7 1.6
-------------------------------------------------------------------------
Transactions between the shareholders
-------------------------------------------------------------------------
Share option plans exercised 0.3 0.3
-------------------------------------------------------------------------
Share-related compensation 0.0 0.0
-------------------------------------------------------------------------
Total transactions between the shareholders 0.3 0.0 0.3
-------------------------------------------------------------------------
Other changes 0.1 0.1
-------------------------------------------------------------------------
Shareholders equity on March 31. 2014 12.9 24.8 0.5 45.4 83.7
-------------------------------------------------------------------------
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. Elektrobit Corporation has applied the same accounting principles in
the preparation of this Interim Report as in its Financial Statements for 2013,
except for the adoption of new standards and interpretations effective during
2014. The changes did not have material impact on the Interim Report.
SEGMENT-INFORMATIOn (MEUR)
OPERATING SEGMENTS 1-3/2014 1-3/2013 1-12/2013
3 months 3 months 12 months
--------------------------------------------------------------
Automotive
--------------------------------------------------------------
Net sales to external customers 37.5 30.5 138.2
--------------------------------------------------------------
Net sales to other segments 0.0 0.0 0.1
--------------------------------------------------------------
Net sales total 37.5 30.5 138.3
--------------------------------------------------------------
--------------------------------------------------------------
Operating profit (loss) 2.9 1.1 8.5
--------------------------------------------------------------
--------------------------------------------------------------
Wireless
--------------------------------------------------------------
Net sales to external customers 14.2 15.8 61.1
--------------------------------------------------------------
Net sales to other segments 0.0 0.0 0.1
--------------------------------------------------------------
Net sales total 14.2 15.8 61.2
--------------------------------------------------------------
--------------------------------------------------------------
Operating profit (loss) -1.1 -0.4 -0.5
--------------------------------------------------------------
--------------------------------------------------------------
OTHER ITEMS
--------------------------------------------------------------
--------------------------------------------------------------
Other items
--------------------------------------------------------------
Net sales to external customers
--------------------------------------------------------------
Operating profit (loss) 0.1 -0.0 0.1
--------------------------------------------------------------
--------------------------------------------------------------
Eliminations
--------------------------------------------------------------
Net sales to other segments -0.0 -0.1 -0.2
--------------------------------------------------------------
Operating profit (loss) 0.0 0.0 0.0
--------------------------------------------------------------
--------------------------------------------------------------
Group total
--------------------------------------------------------------
Net sales to external customers 51.7 46.2 199.3
--------------------------------------------------------------
Operating profit (loss) 1.9 0.7 8.1
--------------------------------------------------------------
Net sales of geographical areas (MEUR) 1-3/2014 1-3/2013 1-12/2013
3 months 3 months 12 months
-------------------------------------------------------------------
Net sales
-------------------------------------------------------------------
Europe 42.0 38.1 164.8
-------------------------------------------------------------------
Americas 7.2 6.2 26.6
-------------------------------------------------------------------
Asia 2.5 1.9 7.9
-------------------------------------------------------------------
Net sales total 51.7 46.2 199.3
-------------------------------------------------------------------
Related party transactions 1-3/2014 1-3/2013 1-12/2013
3 months 3 months 12 months
-------------------------------------------------------------------------------
Employee benefits for key management and stock 0.4 0.3 1.2
options expenses total
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF 1-3/2014 10-12/2013 7-9/2013 4-6/2013 1-3/2013
COMPREHENSIVE INCOME BY QUARTER 3 months 3 months 3 months 3 months 3 months
(MEUR)
Continuing operations
-------------------------------------------------------------------------------
NET SALES 51.7 59.5 45.7 47.9 46.2
-------------------------------------------------------------------------------
Other operating income 0.6 0.7 0.9 1.0 0.9
-------------------------------------------------------------------------------
Change in work in progress and 0.0 -0.1 0.1 -0.1 0.1
finished goods
-------------------------------------------------------------------------------
Work performed by the 0.0
undertaking for its own purpose
and capitalized
-------------------------------------------------------------------------------
Raw materials -5.1 -6.3 -2.0 -1.9 -2.3
-------------------------------------------------------------------------------
Personnel expenses -31.4 -28.8 -26.6 -28.9 -28.9
-------------------------------------------------------------------------------
Depreciation -2.2 -2.4 -2.3 -2.2 -2.2
-------------------------------------------------------------------------------
Other operating expenses -11.8 -17.0 -14.7 -15.2 -13.2
-------------------------------------------------------------------------------
OPERATING PROFIT (LOSS) 1.9 5.7 1.0 0.7 0.7
-------------------------------------------------------------------------------
Financial income and expenses 0.0 -0.2 -0.1 -0.5 -0.1
-------------------------------------------------------------------------------
PROFIT BEFORE TAX 1.9 5.5 0.9 0.2 0.6
-------------------------------------------------------------------------------
Income tax -0.2 -0.4 -0.1 0.0 -0.0
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD FROM 1.7 5.0 0.8 0.2 0.6
CONTINUING OPERATIONS
-------------------------------------------------------------------------------
Discontinued operations
-------------------------------------------------------------------------------
Profit for the period from 0.7 0.0 23.6
discontinued operations
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 1.7 5.0 1.5 0.2 24.2
-------------------------------------------------------------------------------
Other comprehensive income -0.1 -0.1 -0.1 0.2 -0.0
-------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR 1.6 4.9 1.4 0.4 24.2
THE PERIOD
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Profit for the period
attributable to:
-------------------------------------------------------------------------------
Equity holders of the parent 1.7 5.0 1.5 0.2 24.2
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
Total comprehensive income for
the period attributable to:
-------------------------------------------------------------------------------
Equity holders of the parent 1.6 4.9 1.4 0.4 24.2
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
CONSOLIDATED Mar. Dec. Sept. Jun. Mar.
STATEMENT OF 31, 2014 31, 2013 30, 2013 30, 2013 31, 2013
FINANCIAL
POSITION (MEUR)
-------------------------------------------------------------------------------
ASSETS
-------------------------------------------------------------------------------
Non-current
assets
-------------------------------------------------------------------------------
Property, 9.3 9.7 9.3 9.3 8.6
plant and
equipment
-------------------------------------------------------------------------------
Goodwill 19.4 19.3 19.3 19.3 19.3
-------------------------------------------------------------------------------
Intangible 14.8 15.5 16.2 16.5 17.4
assets
-------------------------------------------------------------------------------
Other 0.1 0.1 0.1 0.1 0.1
financial assets
-------------------------------------------------------------------------------
Deferred tax 1.5 1.5 1.2 1.1 1.0
assets
-------------------------------------------------------------------------------
Non-current 45.1 46.1 46.1 46.4 46.5
assets total
-------------------------------------------------------------------------------
Current assets
-------------------------------------------------------------------------------
Inventories 0.9 0.8 0.8 0.5 0.5
-------------------------------------------------------------------------------
Trade and 55.3 54.3 60.2 58.0 59.9
other
receivables
-------------------------------------------------------------------------------
Financial
assets at fair 20.8 20.7 35.0 34.8 34.7
value through
profit or
loss
-------------------------------------------------------------------------------
Cash and short 21.8 22.4 9.0 7.3 8.8
term deposits
-------------------------------------------------------------------------------
Current assets 98.8 98.2 105.0 100.5 104.0
total
-------------------------------------------------------------------------------
TOTAL ASSETS 144.0 144.4 151.1 146.9 150.5
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
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- 24.8 24.5 38.7 38.7 38.7
restricted
equity fund
-------------------------------------------------------------------------------
Translation 0.5 0.6 0.7 0.8 0.6
difference
-------------------------------------------------------------------------------
Retained 45.4 43.7 38.6 37.0 38.0
earnings
-------------------------------------------------------------------------------
Non-
controlling
interests
-------------------------------------------------------------------------------
Total equity 83.7 81.7 91.0 89.5 90.2
-------------------------------------------------------------------------------
Non-current
liabilities
-------------------------------------------------------------------------------
Deferred tax 0.5 0.5 0.5 0.5 0.5
liabilities
-------------------------------------------------------------------------------
Pension 2.1 2.1 2.1 2.0 2.0
obligations
-------------------------------------------------------------------------------
Provisions 0.5 0.3 0.3 0.4 0.4
-------------------------------------------------------------------------------
Interest- 3.0 3.3 7.2 5.0 9.2
bearing
liabilities
-------------------------------------------------------------------------------
Non-current 6.1 6.1 10.1 7.8 12.1
liabilities
total
-------------------------------------------------------------------------------
Current
liabilities
-------------------------------------------------------------------------------
Trade and 43.5 52.2 38.5 36.0 35.4
other payables
-------------------------------------------------------------------------------
Financial 0.2
liabilities at
fair value
through
profit or loss
-------------------------------------------------------------------------------
Provisions 2.3 2.3 2.0 2.1 2.9
-------------------------------------------------------------------------------
Interest- 8.3 2.0 9.6 11.4 9.6
bearing loans
and borrowings
-------------------------------------------------------------------------------
Current 54.1 56.5 50.1 49.6 48.1
liabilities
total
-------------------------------------------------------------------------------
Total 60.3 62.6 60.2 57.4 60.2
liabilities
-------------------------------------------------------------------------------
TOTAL EQUITY AND 144.0 144.4 151.1 146.9 150.5
LIABILITIES
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH 1-3/2014 10-12/2013 7-9/2013 4-6/2013 1-3/2013
FLOWS BY QUARTER 3 months 3 months 3 months 3 months 3 months
-------------------------------------------------------------------------------
Net cash from operating -5.7 26.0 3.3 4.1 1.3
activities
-------------------------------------------------------------------------------
Net cash from investing -1.0 -0.3 -1.6 -1.5 27.8
activities
-------------------------------------------------------------------------------
Net cash from financing 6.2 -26.5 0.1 -4.1 0.2
activities
-------------------------------------------------------------------------------
Net change in cash and cash -0.5 -0.9 1.8 -1.5 29.3
equivalents
-------------------------------------------------------------------------------
FINANCIAL PERFORMANCE RELATED RATIOS 1-3/2014 1-3/2013 1-12/2013
3 months 3 months 12 months
-------------------------------------------------------------------------------
STATEMENT OF COMPREHENSIVE INCOME (MEUR)
-------------------------------------------------------------------------------
Net sales 51.7 46.2 199.3
-------------------------------------------------------------------------------
Operating profit (loss) 1.9 0.7 8.1
-------------------------------------------------------------------------------
Operating profit (loss), % of net sales 3.7 1.5 4.1
-------------------------------------------------------------------------------
Profit before taxes 1.9 0.6 7.2
-------------------------------------------------------------------------------
Profit before taxes, % of net sales 3.8 1.4 3.6
-------------------------------------------------------------------------------
Profit for the period 1.7 0.6 6.7
-------------------------------------------------------------------------------
PROFITABILITY AND OTHER KEY FIGURES
-------------------------------------------------------------------------------
Interest-bearing net liabilities, (MEUR) -31.2 -24.8 -37.7
-------------------------------------------------------------------------------
Net gearing, -% -37.2 -27.5 -46.1
-------------------------------------------------------------------------------
Equity ratio, % 64.8 63.1 65.1
-------------------------------------------------------------------------------
Gross investments, (MEUR) 1.1 1.7 7.9
-------------------------------------------------------------------------------
Average personnel during the period, parent and 1663 1577 1627
subsidiaries
-------------------------------------------------------------------------------
Personnel at the period end, parent and 1661 1556 1648
subsidiaries
-------------------------------------------------------------------------------
Average personnel during the period, jointly owned 337 271 300
company
-------------------------------------------------------------------------------
Personnel at the period end, jointly owned company 342 281 321
-------------------------------------------------------------------------------
AMOUNT OF SHARE ISSUE ADJUSTMENT Mar. 31, 2014 Mar. 31, 2013 Dec. 31, 2013
(1,000 pcs)
-------------------------------------------------------------------------------
At the end of period 130 610 129 413 130 101
-------------------------------------------------------------------------------
Average for the period 130 378 129 413 129 528
-------------------------------------------------------------------------------
Average for the period diluted with 131 290 130 325 130 092
stock options
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1-3/2014 1-3/2013 1-12/2013
STOCK-RELATED FINANCIAL RATIOS 3 months 3 months 12 months
(EUR)
-------------------------------------------------------------------------------
Earnings per share from continuing
operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.013 0.005 0.051
-------------------------------------------------------------------------------
Diluted earnings per share 0.013 0.005 0.051
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from discontinued
operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.182 0.188
-------------------------------------------------------------------------------
Diluted earnings per share 0.181 0.187
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from continuing
and discontinued operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.013 0.187 0.239
-------------------------------------------------------------------------------
Diluted earnings per share 0.013 0.186 0.238
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Equity *) per share 0.64 0.70 0.63
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
*) Equity attributable to equity
holders of the parent
-------------------------------------------------------------------------------
MARKET VALUES OF SHARES (EUR) 1-3/2013 1-3/2013 1-12/2012
3 months 3 months 12 months
------------------------------------------------------------------
Highest 3.23 0.94 2.90
------------------------------------------------------------------
Lowest 2.46 0.64 0.64
------------------------------------------------------------------
Average 2.77 0.81 1.55
------------------------------------------------------------------
At the end of period 2.59 0.80 2.66
------------------------------------------------------------------
------------------------------------------------------------------
Market value of the stock, (MEUR) 338.3 103.5 346.1
------------------------------------------------------------------
Trading value of shares, (MEUR) 68.3 4.8 72.0
------------------------------------------------------------------
Number of shares traded, (1,000 pcs) 24 685 5 910 46 483
------------------------------------------------------------------
Related to average number of shares % 18.9 4.6 35.9
------------------------------------------------------------------
SECURITIES AND CONTINGENT Mar. 31, 2014 Mar. 31, 2013 Dec. 31, 2013
LIABILITIES (MEUR)
-------------------------------------------------------------------------------
AGAINST OWN LIABILITIES
-------------------------------------------------------------------------------
Floating charges 18.0 18.0 18.0
-------------------------------------------------------------------------------
Guarantees 14.1 21.3 14.6
-------------------------------------------------------------------------------
Rental liabilities
-------------------------------------------------------------------------------
Falling due in the next year 7.4 6.6 7.6
-------------------------------------------------------------------------------
Falling due after one year 16.5 15.6 17.6
-------------------------------------------------------------------------------
Other contractual liabilities
-------------------------------------------------------------------------------
Falling due in the next year 0.8 1.0 1.0
-------------------------------------------------------------------------------
Falling due after one year 0.5 0.0 0.6
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Mortgages are pledged for 2.1 15.2 2.5
liabilities totaled
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
NOMINAL VALUE OF CURRENCY Mar. 31, 2013 Mar. 31, 2013 Dec. 31, 2013
DERIVATIVES (MEUR)
-------------------------------------------------------------------------------
Foreign exchange forward contracts
-------------------------------------------------------------------------------
Market value 0.0 -0.2 0.1
-------------------------------------------------------------------------------
Nominal value 6.0 5.0 6.0
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Purchased currency options
-------------------------------------------------------------------------------
Market value 0.1 0.0 0.0
-------------------------------------------------------------------------------
Nominal value 5.5 2.0 2.5
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Sold currency options
-------------------------------------------------------------------------------
Market value -0.0 -0.0 -0.0
-------------------------------------------------------------------------------
Nominal value 10.0 4.0 5.0
-------------------------------------------------------------------------------
[HUG#1781207]
© 2024 Nasdaq, Inc. All Rights Reserved |