2012-05-25 08:00:01 CEST
2012-05-25 08:00:08 CEST
REGULATED INFORMATION
Efore - Interim report (Q1 and Q3)
EFORE GROUP INTERIM REPORT NOVEMBER 1, 2011 – APRIL 30, 2012
Espoo, Finland, 2012-05-25 08:00 CEST (GLOBE NEWSWIRE) -- EFORE PLC Interim
Report May 25, 2012 9 a.m.
Period under the review in brief (November 1, 2011 — April 30, 2012)
- Net sales totaled EUR 34,1 million (EUR 42.4 million)
- Results from operating activities amounted to EUR -2.2 million (EUR 1.5
million)
- Profit before taxes was EUR -2.7 million (EUR 1.7 million)
- Profit for the period was EUR -2.4 million (EUR 1.0 million)
- Earnings per share was EUR -0.6 (EUR 0.03)
Second quarter in brief (February 1, 2012 — April 30, 2012)
- Net sales totaled EUR 19.3 million (EUR 20.6 million)
- Results from operating activities amounted to EUR -1.3 million (EUR 0.4
million)
- Profit before taxes was EUR -1,5 million (EUR 0.7 million)
- Profit for the period was EUR -1.3 million (EUR 0.5 million)
- Earnings per share was EUR -0.03 (EUR 0.01)
Vesa Vähämöttönen, Efore's President and CEO:
“As expected our net sales increased 30% from the first quarter as a result of
balanced inventory levels. Unfortunately results from operating activities did
not meet the expectation. However, second half is estimated to be clearly
stronger.”
NOVEMBER - APRIL NET SALES AND FINANCIAL DEVELOPMENT
Net sales for the period under the review totaled EUR 34.1 million (EUR 42.4
million). Net sales by customer group was as follows: Telecommunication 77,5 %
(79.1 %) and industrial electronics 22.5 % (20.9 %). Geographically Efore's
deliveries were to the following areas: EMEA EUR 17.0 million (EUR 14.4
million), APAC EUR 12.1 million (EUR 21.2 million), Finland EUR 4.4 million
(EUR 5.6 million) and the Americas EUR 0.6 million (EUR 1.3 million) which
totaled EUR 34.1 million (EUR 42.4 million). Final geographical distribution of
Efore's products deviates from the before mentioned as Efore's customers
distribute further the products from the logistics centres to other markets.
The results from operating activities amounted to EUR -2.2 million (EUR 1.5
million).
Low demand caused by balancing of inventory levels at main customers and
unfavorable product mix weakened the results from operating activities.
Results from operating activities include one-time items of approximately EUR
0.1 million related to discontinued operations of Estonia factory. Efore
estimates the total one-time costs related to Estonia factory closure to be
approximately EUR 1.8 million and these will be reported mainly for the fourth
quarter when final costs can be reliably estimated.
NET SALES AND FINANCIAL DEVELOPMENT FOR THE SECOND QUARTER
Net sales for the second quarter totaled EUR 19.3 million (EUR 20.6 million).
Net sales by customer group was as follows: Telecommunication 80.9 % (79.3 %)
and industrial electronics 19.1 % (20.7 %). Geographically Efore's deliveries
were to the following areas: EMEA EUR 10.5 million (EUR 7.5 million), APAC EUR
6.6 million (EUR 9.8 million), Finland EUR 2.0 million (EUR 2.9 million) and
the Americas EUR 0.3 million (EUR 0.4 million) which totaled EUR 19.3 million
(EUR 20.6 million). Final geographical distribution of Efore's products
deviates from the before mentioned as Efore's customers distribute further the
products from the logistics centres to other markets.
The results from operating activities amounted to EUR -1.3 million (EUR 0.4
million).
Unfavorable product mix as well as exceptionally high export sales from China
in Euros together with weakened Euro had negative impact to the results from
operating activities.
BUSINESS DEVELOPMENT
Investment in product and technology development during the period under review
was EUR 3.9 million (EUR 3.5 million) representing 11.3 % (8.2 %) of net sales.
Demand for Efore's telecom products developed favorably during the second
quarter. Growth was expected as a result from balancing of inventory levels at
main customers.
Demand of Efore's industrial electronics continued stable. Power supply system
cabinets ordered by the Finnish Defense Forces have been delivered according to
the first phase of the agreement.
Efore negotiates with Chinese companies in electric vehicles (EV) industry
about cooperation models to reach the access to the market. Development of EV
power electronics product family is progressing as planned. During the period
under review investments in EV business were EUR 0.3 million and personnel
costs were EUR 0.4 million.
The closure of Estonia factory and related production transfer to China are
proceeding as planned.
INVESTMENTS
Group investments in fixed assets during the period under review amounted to
EUR 1.2 million (EUR 1.5 million) of which product development costs were EUR
0.4 million.
At the end of the period under review capitalized product development costs
amounted to EUR 0.9 million (EUR 0.8 million).
FINANCIAL POSITION
The Group's financial position during the period under review was good.
The consolidated interest-bearing cash reserves exceeded interest-bearing
liabilities by EUR 0.8 million (EUR 4.0 million). The consolidated net
financial expenses were EUR 0.5 million (EUR -0.1 million). The cash flow from
business operations was EUR 0.2 million (EUR 2.9 million). The cash flow after
investments was EUR -0.9 million (EUR 1.4 million).
The Group's solvency ratio was 44.5 % (46.4 %) and the gearing was -3.9 %
(-19.4 %).
Liquid assets excluding undrawn credit facilities totaled EUR 7.6 million (EUR
6.9 million) at the end of the period under review. The balance sheet total
was EUR 46.3 million (EUR 44.4 million).
PERSONNEL
The number of the Group's own personnel including temporary personnel averaged
870 (912) during the period under review and at the end of the period under
review it was 939 (954). At the end of April 2012 more than 92% of the
personnel worked outside of Finland.
SHARES, SHARE CAPITAL AND SHAREHOLDERS
The total number of Efore Plc shares at the end of the period under review was
42.529.648 and the registered share capital was EUR 15.000.000.
The Board of Directors of Efore Plc decided on April 2, 2012 to acquire in one
or several tranches an aggregate maximum of 1,000,000 of the company's own
shares in accordance with the authorization given to it at the Annual General
Meeting on 9 February 2012. The acquisition of the company's own shares started
on April 10, 2012 and is still continuing.
At the end of the period under review the number of the Group's own shares was
760.191. In addition to this Efore Management Oy, a company belonging to Efore
group owned 2.358.242 pcs of Efore shares.
The highest share price during the period under review was EUR 0.94 and the
lowest price was EUR 0.68. The average price during the period under review was
EUR 0.78 and the closing price was EUR 0.76. The market capitalization
calculated at the final trading price during the period under review was EUR
30.0 million.
The total number of Efore shares traded on the Nasdaq OMX Helsinki during the
period under review was 6.1 million and their turnover value was EUR 4.7
million. This accounted for 15.4 % of the total number of shares. The number
of shareholders totaled 3332 (3269) at the end of the period under review.
ACCOUNTING POLICIES
The report has been drawn up in accordance with IAS 34 Standard on Interim
Financial Reporting and the Group's accounting principles presented in the 2011
annual report. The information in this release is unaudited.
Exchange rate differences have been reported in financial items. The figures
for the previous year have been adjusted in accordance with the new practice.
All the figures in the report have been rounded up/down, for which
reason the total of the individual figures when added together may be different
from the total shown.
SHORT-TERM RISKS AND FACTORS OF UNCERTAINTY
The market typical fluctuation in demand can cause rapid changes in Efore's
business. The most significant business risks are related to the success of
key customers in their markets and to Efore's delivery capability for the key
customers.
Progress of the EV power electronics projects depends on the customers' own
project schedules and the establishment of the whole market.
It has been recognized that global economic development may have an effect on
Efore's business environment
A more comprehensive report on risk management is presented on the company's
web-sites.
OUTLOOK
The fundamentals for long-term positive development of wireless network
equipment industry are expected to remain unchanged and therefore
telecommunications network market is estimated to grow compared to previous
year.
Efore estimates its position in its main market area, power products for
telecommunication, to remain strong.
FINANCIAL ESTIMATE FOR THE FISCAL YEAR 2012
Efore lowered its financial estimate for fiscal year 2012 on May 16, 2012.
New full 2012 fiscal year estimate: The company estimates net sales for fiscal
year 2012 to stay below the fiscal year 2011 level and result of operating
activities without one-time costs to be slightly negative.
Efore's previous estimate, published on March 8, 2012 was:
Slow first months of the fiscal year 2012 will effect to the whole year. Efore
estimates to reach at least EUR 80 million net sales for full fiscal year 2012.
Fiscal year 2012 result from operating activities without one-time costs is
expected to be positive but staying below the fiscal year 2011 level.
TABLES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million Feb./1 Feb./1 Nov./1 Nov./1 Nov./1
2- 1- 1- 0- 0-
Apr./1 Apr./ Apr./ Apr./ Oct./1
2 11 12 11 1
3 3 6 6 12
months months months months months
Net sales 19,3 20,6 34,1 42,4 88,0
Change in inventories of
finished goods and work in progress 0,7 1,0 1,3 2,8 2,5
Other operating income 0,1 0,0 0,5 0,1 0,2
Materials and services -14,7 -15,2 -25,2 -31,8 -62,0
Employee benefits expenses -4,0 -3,7 -7,5 -7,2 -15,1
Depreciation -0,8 -0,6 -1,7 -1,3 -2,6
Other operating expenses -2,0 -1,8 -3,8 -3,5 -6,9
RESULTS FROM OPERATING ACTIVITIES -1,3 0,4 -2,2 1,5 4,1
% net sales -7,0 1,7 -6,4 3,5 4,6
Financing income 0,1 0,3 0,5 0,4 1,3
Financing expenses -0,3 -0,1 -1,0 -0,2 -1,0
Share of profit of associated
companies 0,0 0,1 0,0 0,1 0,1
RESULT BEFORE TAX -1,5 0,7 -2,7 1,7 4,5
% net sales -7,6 3,4 -7,9 4,0 5,1
Tax on income from operations 0,1 -0,2 0,3 -0,7 -1,0
RESULT FOR THE PERIOD -1,3 0,5 -2,4 1,0 3,4
OTHER COMPREHENSIVE INCOME:
Translation differences 0,0 -0,8 1,0 -0,6 0,4
Total comprehensive income -1,3 -0,3 -1,3 0,4 3,9
NET PROFITT/lOSS ATTRIBUTABLE
To equity holders of the parent -1,3 0,5 -2,3 1,0 3,5
To non-controlling interest 0,0 0,0 0,0 0,0 0,0
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
Equity holders of the parent -1,3 -0,3 -1,3 0,4 3,9
Non-controlling interest 0,0 0,0 0,0 0,0 0,0
EARNINGS PER SHARE CALCULATED ON PROFIT
ATTRIBUTABLE TO EQUITY HOLDERS OF THE
PARENT:
Earnings per share, basic,eur -0,03 0,01 -0,06 0,03 0,09
Earnings per share, diluted, eur -0,03 0,01 -0,06 0,03 0,09
INFORMATION ABOUT GEOGRAPHICAL Feb./1 Feb./1 Nov./1 Nov./1 Nov./1
2- 1- 1- 0- 0-
AREAS, EUR million Apr./1 Apr./ Apr./ Apr./ Oct./1
2 11 12 11 1
3 3 6 6 12
months months months months months
Americas 0,3 0,4 0,6 1,3 2,8
EMEA 10,5 7,5 17,0 14,4 32,9
FINLAND 2,0 2,9 4,4 5,6 11,7
APAC 6,6 9,8 12,1 21,2 40,7
Total 19,3 20,6 34,1 42,4 88,0
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
EUR million Apr. 30, Apr. 30, change Oct. 31,
2012 2011 % 2011
ASSETS
NON-CURRENT ASSETS
Intangible assets 1,3 1,3 1,4
Tangible assets 6,8 4,8 6,8
Investments in associates 0,0 0,7 0,0
Other long-term investments 0,0 0,0 0,0
NON-CURRENT ASSETS 8,1 6,9 18,0 8,2
CURRENT ASSETS
Inventories 14,4 13,4 13,0
Trade receivables and other receivables 15,6 16,9 17,3
Tax receivable, income tax 0,6 0,3 0,1
Cash and cash equivalents 7,6 6,9 11,2
CURRENT ASSETS 38,2 37,6 1,6 41,7
ASSETS 46,3 44,4 4,1 49,9
EQUITY AND LIABILITIES
EQUITY
Share capital 15,0 15,0 15,0
Treasury shares -2,2 -2,1 -2,1
Other reserves 19,8 21,9 21,9
Translation differences 1,6 -0,4 0,6
Retained earnings -13,9 -14,0 -11,6
Equity attributable to equity holders of 20,3 20,3 23,8
the parent
Equity attributable to non-controlling 0,3 0,3 0,3
interests
EQUITY 20,6 20,6 -0,1 24,1
NON-CURRENT LIABILITIES
Deferred tax liabilities 0,0 0,0 0,0
Interest-bearing liabilities 1,8 2,3 3,3
NON-CURRENT LIABILITIES 1,8 2,3 -19,8 3,3
CURRENT LIABILITIES
Interest-bearing liabilities 5,0 0,6 4,1
Trade payables and other liabilities 18,4 20,2 17,9
Tax liabilities 0,0 0,4 0,3
Provisions 0,4 0,4 0,3
CURRENT LIABILITIES 23,8 21,5 22,5
LIABILITIES 25,7 23,8 25,8
TOTAL EQUITY AND LIABILITIES 46,3 44,4 4,1 49,9
GROUP KEY FIGURES, EUR million Feb./12 Feb./11 Nov./11 Nov./10 Nov./10-
- - - -
Apr./12 Apr./ Apr./ Apr./ Oct./11
11 12 11
3 3 6 6 12
months months months months months
Earnings per share, basic,eur -0,03 0,01 -0,06 0,03 0,09
Earnings per share, diluted, eur -0,03 0,01 -0,06 0,03 0,09
Equity per share, eur 0,52 0,51 0,52 0,51 0,60
Solvency ratio,% 44,5 46,4 44,5 46,4 48,3
Return on equity-%(ROE) -23,5 8,9 -21,2 9,7 15,5
Return on investment-%(ROI) -18,8 12,8 -16,8 15,6 17,5
Gearing, % -3,9 -19,4 -3,9 -19,4 -16,3
Net interest-bearing liabilities -0,8 -4,0 -0,8 -4,0 -3,9
Investments (intangible and 0,5 0,5 1,2 1,5 4,4
tangible assets)
as percentage of net sales 2,8 2,5 3,6 3,6 5,0
Average personnel 931 936 870 912 960
CONSOLIDATED STATEMENT OF CASH FLOWS Nov./11 Nov./10 change Nov./10
- - -
EUR million Apr. Apr./11 % Oct./11
/12
Cash flows from operating activities
Cash receipts from customers 39,0 45,6 91,9
Cash paid to suppliers and employees -38,2 -42,0 -86,4
Cash generated from operations 0,9 3,6 5,5
Interest paid 0,0 0,0 -0,1
Interest received 0,0 0,0 0,1
Other financial items -0,5 -0,1 -0,5
Income taxes paid -0,1 -0,5 -0,6
Net cash from operating activities (A) 0,2 2,9 -92,3 4,3
Cash flows from investing activities
Purchase of tangible and intangible assets -1,2 -1,6 -4,3
Proceeds from sale of tangible and intangible 0,1 0,0 0,1
assets
Disposal of associated companies 0,0 0,0 0,5
Dividend received and repayment of capital 0,0 0,0 1,0
Net cash used in investing activities (B) -1,1 -1,5 -25,8 -2,8
Cash flows from financing activities
Capital invest by the minority 0,0 0,0 0,0
Repurchase of own shares -0,1 0,0 0,0
Proceedings from short-term borrowings 0,6 0,0 3,3
Repayment of short-term borrowings -1,1 0,0 0,0
Proceeds from long-term borrowings 0,0 0,0 1,1
Repayment of long-term borrowings -0,3 -0,3 -0,5
Financial leasing repayment -0,1 -0,1 -0,2
Repayment of capital to shareholders -2,1 0,0 0,0
Net cash used in financing activities (C) -3,0 -0,3 3,7
Net increase/decrease in cash and cash
equivalents (A+B+C) -3,9 1,0 5,3
Cash and cash equivalents at beginning of 11,2 5,9 5,9
period on Nov.1
Net increase/decrease in cash and cash -3,9 1,0 5,3
equivalents
Effects of exchange rate fluctuations on cash 0,3 -0,1 0,1
held
Cash and cash equivalents at end of period on 7,6 6,9 11,2
Jan. 31
GROUP CONTINGENT LIABILITIES Apr. Apr. Oct.
30, 30, 31,
EUR million 2012 2011 2011
Security and contingent liabilities
For others
Other contingent liabilities 0,1 0,1 0,1
Operating lease commitments
Group as lessee
Non-cancellable minimum operating lease
payments:
Less than 1 year 1,3 1,5 1,1
1-5 years 0,7 1,2 0,8
Fair values of derivate financial instruments
Currency derivatives, not hedge
Option contract
Nominal amount 5,4 1,4 5,2
Negative fair value 0,0 0,0 0,0
THE FOLLOWING TRANSACTIONS WERE Apr. Apr. Oct.
30, 30, 31,
CARRIED OUT WITH RELATED PARTIES: 2012 2011 2011
EUR million
Associated companies
Purchases 0,0 0,0 0,0
Liabilities 0,0 0,0 0,0
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A Share capital
B Treasury shares
C Unrestricted equity reserve
D Other reserves
E Translation differences
F Retained earnings
G Equity holders of the parent
H Non-controlling interests
I Total
EUR million A B C D E F G H I
Equity 15,0 -2,1 20,9 1,0 0,1 -15,0 19,9 0,3 20,2
Nov.1, 2010
Comprehensive income 0,0 0,0 0,0 0,0 -0,6 1,0 0,4 0,0 0,4
Equity 15,0 -2,1 20,9 1,0 -0,4 -14,0 20,3 0,3 20,6
April 30, 2011
EUR million A B C D E F G H I
Equity 15,0 -2,1 20,9 1,0 0,6 -11,6 23,8 0,3 24,1
Nov.1, 2011
Comprehensive income 0,0 0,0 0,0 0,0 1,0 -2,3 -1,3 0,0 -1,3
Repayment of capital to 0,0 0,0 -2,1 0,0 0,0 0,0 -2,1 0,0 -2,1
shareholders
Capital invest by the 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
minority
Repurchase of own shares 0,0 -0,1 0,0 0,0 0,0 0,0 -0,1 0,0 -0,1
Equity 15,0 -2,2 18,8 1,0 1,6 -13,9 20,3 0,3 20,6
April 30, 2012
30.4.2012
CALCULATION OF
KEY
FIGURES AND
RATIOS
Return on = Profit before taxes+interest and other financing x 100
investment expenses /
(ROI), % (Equity + interest-bearing liabilities, average )
Return on Equity = Profit/loss for the period / Equity (average ) x 100
(ROE), %
Current ratio = Current assets / Current liabilities
Solvency ratio, % = Equity / (Total assets - advance payments received x 100
- own shares*)
Net = Interest-bearing liabilities - financial assets at
interest-bearing fair value through profit or loss - cash and cash
liabilities equivalents
Gearing, % = Net interest-bearing liabilities / Equity x 100
Earnings per = Profit or loss attributable to ordinary equity
share holders of the parent entity/ The weighted average
number of ordinary shares outstanding
Dividend per = Dividend for the financial year / (Number of shares - own
share shares*)
Dividend payout = Dividend per share / Earnings per share x 100
ratio, %
Effective = Dividend per share /Adjusted share price at x 100
dividend yield, balance sheet date
%
Equity per share = Equity - own shares* /Number of shares at
balance sheet date
P/E-ratio = Adjusted share price at balance sheet date /
Earnings per share
Market = Adjusted share price at balance sheet date x
capitalization = outstanding number of shares at balance sheet
date
Average personnel = The average number of employees at the end of
each calendar month during the accounting
period
All share-specific figures are based on the issue-adjusted number of
shares.
Equity is the equity owned by the holders of the parent company's
shares.
When calculating per share performance measures equity is the equity
attributable to the shareholders of the parent company, when
calculating other performance measures equity includes equity
attributable to the shareholders of the parent company and
non-controlling interests.
* There were own shares held by company April 30, 2012.
EFORE PLC
Board of Directors
For further information please contact Mr.Vesa Vähämöttönen, President and CEO,
on May 25, 2012 at 9 - 11 a.m., tel. +358 9 4784 6312
Efore Plc will hold a news conference regarding the financial statement report
for analysts and media on May 25, 2012 at 11 a.m. in Helsinki World Trade
Center, address Aleksanterinkatu 17.
DISTRIBUTION Nasdaq OMX Helsinki Oy
Principal media
Efore Group
Efore Group is an international company which develops and produces demanding
power products. Efore's head office is based in Finland and its production
units are located in China and in Estonia. Efore is present also in Sweden. In
the fiscal year ending in October 2011, consolidated net sales totaled EUR 88,0
million and the Group's personnel averaged 960. The company's share is quoted
on the Nasdaq OMX Helsinki Ltd.
www.efore.com
Vesa Vähämöttönen, President and CEO, tel. +358 9 4784 6312
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