2010-04-29 07:00:00 CEST
2010-04-29 07:02:42 CEST
REGULATED INFORMATION
Elektrobit Oyj - Interim report (Q1 and Q3)
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-MARCH 2010
STOCK EXCHANGE RELEASE
Free for publication on April 29, 2010 at 8.00 am (CEST+1)
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-MARCH 2010
POSITIVE OPERATING PROFIT AND CASH FLOW
SUMMARY 1Q 2010
- Net sales amounted to EUR 41.5 million (EUR 42.8 million, 1Q 2009),
representing a decrease of -3.1per cent year-on-year.
- Operating profit continued to improve and totaled to EUR 1.7 million (EUR 0.0
million, 1Q 2009).
- Operating cash flow increased to EUR 10.6 million (EUR -2.7 million,
1Q 2009). The net cash flow amounted to EUR 8.0 million (EUR -5.8 million,
1Q 2009).
- Cash and other liquid assets totaled to EUR 67.1 million (EUR 62.8 in
1Q 2009).
- Equity ratio remained strong and was 56.0% (68.2% in 1Q 2009). The decrease
reflects the intended distribution of funds from the share premium fund of EUR
25.9 million which was recognized in 1Q.
- Earnings per share were EUR -0.01 (EUR -0.01, 1Q 2009).
EB'S CEO JUKKA HARJU:"During the first quarter EB succeeded in improving its profitability and
achieved a positive operating profit in both Automotive and Wireless Business
Segments. Consequently we managed to produce 10.6 MEUR positive operating cash
flow. Improving the profitability remains our main objective".
OUTLOOK FOR THE FIRST HALF OF 2010
Signs of market recovery have continued during the early 2010 in both generic
economic environment, and within the EB's Automotive and Wireless Business
Segments. More specific market outlook is presented under the "Business
Segments' development during the first quarter 2010 and market outlook" section.
Our main focus for the first half of 2010 is to improve profitability.
EB expects that the turnover of the first half of 2010 is higher than in the
second half of 2009 (EUR 73.6 million), and that the operating profit of the
first half of 2010 is higher than the operating profit from business operations
of the second half of 2009 (EUR 0.0 million). The operating profit for the
second quarter of 2010 is expected to reach at maximum the level of the
operating profit in the first quarter of 2010 (EUR 1.7 million).
INVITATION TO PRESS CONFERENCE
Concerning the interim report 1Q 2010 EB will hold a press conference for media,
analysts and institutional investors in Finland, Espoo, Keilasatama 5 in meeting
room Purje, 2(nd) floor on Thursday, April 29, 2010 at 11.00 am (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 on joining the conference please go to
www.elektrobit.com/investors <http://www.elektrobit.com/investors>.
EB, Elektrobit Corporation
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 for the year 2009 totalled
MEUR 153.8. Elektrobit Corporation is listed on NASDAQ OMX Helsinki.
www.elektrobit.com <http://www.elektrobit.com/>
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-MARCH 2010
FINANCIAL PERFORMANCE DURING JANUARY - MARCH 2010
EB's net sales during January - March 2010 decreased by -3.1 per cent to EUR
41.5 million (EUR 42.8 million in 1Q 2009). Operating profit increased to EUR
1.7 million (EUR 0.0 million in 1Q 2009).
CONSOLIDATED INCOME STATEMENT (MEUR) 1-3 2010 1-3 2009
3 months 3 months
NET SALES 41.5 42.8
OPERATING PROFIT (LOSS) 1.7 0.0
Financial income and expenses -1.0 -0.9
RESULT BEFORE TAX 0.7 -0.9
RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS -0.3 -1.1
Profit after tax for the year from discontinued operations 0.0 0.0
RESULT FOR THE PERIOD -0.3 -1.1
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 0.3 -0.8
Result for the period attributable to:
Equity holders of the parent -0.6 -1.1
Minority interest 0.3
Total comprehensive income for the period attributable to:
Equity holder of the parent 0.0 -0.8
Minority interest 0.3
Earnings per share EUR continuing operations -0.01 -0.01
Earnings per share EUR discontinued operations 0.00 0.00
Earnings per share EUR continuing and discontinued operations -0.01 -0.01
- Cash flow from Business Operations amounted to EUR 10.6 million (EUR -2.7
million).
- Equity ratio was 56.0% (68.2%).
- Net gearing was -59.5% (-36.9%).
QUARTERLY FIGURES
The distribution of the Group's overall net sales and profit, MEUR:
+------------------------------------------------+-----+-----+-----+-----+-----+
| |1Q 10|4Q 09|3Q 09|2Q 09|1Q 09|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Net sales | 41.5| 40.1| 33.5| 37.4| 42.8|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss) | 1.7| 0.5| -0.8| -1.1| 0.0|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss) without non-recurring | 1.7| 0.8| -0.8| -0.4| 0.9|
|costs | | | | | |
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result before taxes | 0.7| 0.1| -0.6| -0.7| -0.9|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result for the period | -0.3| -0.3| -0.5| -1.6| -1.1|
+------------------------------------------------+-----+-----+-----+-----+-----+
The distribution of the net sales by Business Segments, MEUR:
+-----------------+-----+-----+-----+-----+-----+
| |1Q 10|4Q 09|3Q 09|2Q 09|1Q 09|
+-----------------+-----+-----+-----+-----+-----+
|Automotive | 18.5| 16.8| 14.8| 13.5| 16.4|
+-----------------+-----+-----+-----+-----+-----+
|Wireless | 22.8| 23.0| 18.6| 23.7| 26.3|
+-----------------+-----+-----+-----+-----+-----+
|Corporation total| 41.5| 40.1| 33.5| 37.4| 42.8|
+-----------------+-----+-----+-----+-----+-----+
The distribution of the net sales by market areas, MEUR and %:
+--------+-----+-----+-----+-----+-----+
| |1Q 10|4Q 09|3Q 09|2Q 09|1Q 09|
+--------+-----+-----+-----+-----+-----+
|Asia | 2.7| 4.4| 1.8| 2.5| 4.4|
| | | | | | |
| | 6.5%|11.0%| 5.5%| 6.8%|10.3%|
+--------+-----+-----+-----+-----+-----+
|Americas| 15.8| 13.7| 11.1| 12.5| 11.9|
| | | | | | |
| |38.1%|34.2%|33.1%|33.5%|27.7%|
+--------+-----+-----+-----+-----+-----+
|Europe | 23.0| 22.0| 20.6| 22.3| 26.6|
| | | | | | |
| |55.4%|54.8%|61.4%|59.7%|62.1%|
+--------+-----+-----+-----+-----+-----+
Net sales (external) and operating profit development by Business Segments and
Other businesses, MEUR:
+-----------------------+-----+-----+-----+-----+-----+
| |1Q 10|4Q 09|3Q 09|2Q 09|1Q 09|
+-----------------------+-----+-----+-----+-----+-----+
|Automotive | | | | | |
| | | | | | |
|Net sales | 18.5| 16.8| 14.8| 13.5| 16.4|
| | | | | | |
|Operating profit (loss)| 0.9| 0.3| -0.9| -2.5| -0.7|
+-----------------------+-----+-----+-----+-----+-----+
|Wireless | | | | | |
| | | | | | |
|Net sales | 22.8| 23.0| 18.6| 23.7| 26.3|
| | | | | | |
|Operating profit (loss)| 0.9| -0.3| -0.1| 0.9| 0.5|
+-----------------------+-----+-----+-----+-----+-----+
|Other businesses | | | | | |
| | | | | | |
|Net sales | 0.2| 0.2| 0.2| 0.2| 0.1|
| | | | | | |
|Operating profit (loss)| -0.1| 0.5| 0.2| 0.4| 0.2|
+-----------------------+-----+-----+-----+-----+-----+
|Total | | | | | |
| | | | | | |
|Net sales | 41.5| 40.1| 33.5| 37.4| 42.8|
| | | | | | |
|Operating profit (loss)| 1.7| 0.5| -0.8| -1.1| 0.0|
+-----------------------+-----+-----+-----+-----+-----+
BUSINESS SEGMENTS' DEVELOPMENT DURING THE FIRST QUARTER 2010 AND MARKET OUTLOOK
EB's reporting is based on the Automotive and Wireless Business Segments.
AUTOMOTIVE
The Automotive Business Segment consists of in-car software products, navigation
software for after market devices and development services for the automotive
industry with leading car manufacturers, car electronics suppliers and
automotive chipset suppliers as customers. By combining its software products
and R&D services EB is creating unique, customized solutions for its automotive
customers.
During the first quarter of 2010, the Automotive Business Segment's net sales
amounted to EUR 18.5 million (EUR 16.4 million, 1Q 2009) representing a growth
of 13.0 per cent year-on-year. The operating profit increased to EUR 0.9 million
(EUR -0.7 million, 1Q 2009). The significant profitability improvement
year-on-year is mainly due to increased net sales thanks to the recovered market
and the improved performance in our R&D service projects.
In ECU software EB introduced several new versions of its ECU tooling
environment (EB Tresos), and EB and dSpace announced the harmonization of their
AUTOSAR tools in order to offer developers a coordinated tool chain.
In infotainment new versions of the human machine interface design tool (EB
GUIDE) were launched. The joint venture company of EB and Audi, e.solutions,
proceeded according to the plans in the development of an integrated
infotainment software suite for the next generation Audi/VW high-end
infotainment system.
Automotive Market Outlook
The majority of the innovation and differentiation in the automotive industry is
brought about by software and electronics. The share of electronics and software
in cars has grown significantly during the past years and it is expected that
the trend of increased use of software in automotive continues to prevail in the
market. The estimated annual automotive software market long-term growth rate of
some 15 per cent (Frost & Sullivan) was recently negatively affected by the
downturn of the automotive industry. However, during the last months the market
has clearly improved and is expected to start returning to the level of the
long-term growth.
In order to enable faster innovation, to improve quality and development
efficiency and to reduce complexity related to software, the use of standard
software solutions is expected to increase in the automotive industry.
The underlying growth of the automotive software market will continue and the
cost pressures of the automotive industry are expected to accelerate the need of
productized, efficient software solutions EB is offering.
EB's net sales cumulating from the automotive industry are currently primarily
driven by the development of new cars and platforms and dependency on production
volumes of the car industry is limited. However, over the years to come
dependency on the production volumes is increasing as a result of the transition
towards software product business models.
WIRELESS
The Wireless Business Segment comprises the following businesses:
- Wireless Solutions provides customized solutions and R&D services for wireless
industry and other industries utilizing wireless technologies.
- Wireless Communications Tools provides test tools for measuring, modeling and
emulating radio channel environments.
The Wireless Business Segment's net sales during January - March 2010 amounted
to EUR 22.8 million (EUR 26.3 million, 1Q 2009), representing a decline of -13.4
per cent. The decline in net sales year-on-year is mainly due the lower volumes
in the WiMAX business. Operating profit from business operations increased to
EUR 0.9 million (EUR 0.5 million, 1Q 2009). Profitability improvement with lower
net sales level year-on-year reflects the lower cost base and improved
performance in R&D service projects.
In the wireless device and infrastructure markets, EB offers to its customers
product development and service programs and even complete product variants. The
importance of offshore presence as part of EB's offering is steadily increasing.
As the use of open source platforms and ecosystems continued to grow within the
device ecosystem, EB strengthened its capabilities in emerging new technologies
such as MeeGo and Android complementing its already strong competencies in
Symbian and Windows Mobile.
EB designed TerreStar GENUS smartphone entered into the AT&T certification
process. In the Public Safety and Defense markets the wireless technologies and
solutions being used in high volume commercial device and infrastructure markets
became more important part of our offering.
Wireless Communications Tools demand continued to be driven by the advanced
development tools for 3GPP LTE technology which is expected to remain for the
medium and long term.
The global mobile device market decreased in volume in 2009, yet the mobile
device market volumes are expected to increase again in 2010. The value share is
expected to move towards higher-end due to the increased demand for new features
and services. The global mobile infrastructure market is expected to be flat
during 2010 and the consolidation of the industry may continue. The mobile
satellite communication service industry is introducing new data and mobile
communication services with new operators being formed and traditional ones
upgrading their solutions and offerings.
The mobile communication R&D services market continues to be challenging and the
continuing price pressure drives increasing off-shoring in the industry.
However, OEMs are expected to increase their R&D flexibility that can create new
opportunities for partnering for EB.
New open software architectures and platforms are creating opportunities for
companies such as EB with strong integration capabilities.
LTE standard is gaining strength while the momentum of Mobile WiMAX standard has
been decreasing. Going forward, EB's business driven by LTE is increasing while
EB's future sales revenues are not materially dependent on Mobile WiMAX
technology.
Mastering of multi-radio technologies and end-to-end system architectures
covering both terminal and network technologies, has gained importance in the
complex wireless technology industry. The demand for EB's hybrid
satellite-terrestrial device solutions is expected to continue. The
satellite-terrestrial and Mobile Satellite Services (MSS) market demand is
expected to start moving from the current reference design phase towards the
launch of commercial products and services. This can create new service and
product related business opportunities for EB.
The current economic downturn did not have a significant effect on the overall
wireless communications tools market. Need for advanced development tools 3GPP
LTE technology is expected to remain as a driver for the demand in the medium
and long term. EB provides world leading channel emulation tools for the
development of MIMO based 3GPP LTE and other advanced radio technologies.
RESEARCH AND DEVELOPMENT
EB increased its investments in R&D in the automotive software products and
tools as well as in radio channel emulation products and maintained the
investment level within Wireless Solutions' products.
The total R&D investments during the first quarter of 2010 were EUR 4.7 million
(EUR 3.4 million, 1Q 2009), equaling 11.2 per cent of the net sales (8.0 per
cent in 1Q 2009). EUR 0.7 million of R&D investments were capitalized.
OUTLOOK FOR THE FIRST HALF OF 2010
Signs of market recovery have continued during the early 2010 in both generic
economic environment, and within the EB's Automotive and Wireless Business
Segments. More specific market outlook is presented under the "Business
Segments' development during the first quarter 2010 and market outlook" section.
Our main focus for the first half of 2010 is to improve profitability.
EB expects that the turnover of the first half of 2010 is higher than in the
second half of 2009 (EUR 73.6 million), and that the operating profit of the
first half of 2010 is higher than the operating profit from business operations
of the second half of 2009 (EUR 0.0 million). The operating profit for the
second quarter of 2010 is expected to reach at maximum the level of the
operating profit in the first quarter of 2010 (EUR 1.7 million).
RISKS AND UNCERTAINTIES
EB has identified a number of business, market and finance related factors that
can affect the level of sales and profits. Those of the greatest significance on
a short term are those affecting the utilization and chargeability levels and
average hourly prices of R&D services. On the ongoing financial period the
global economic slowdown may affect the demand for the EB's services, solutions
and products and provide pressure on e.g. volumes and pricing. It may also
increase the risk for credit losses. As the EB's customer base consists mainly
of companies operating in the fields of automotive and telecommunications, the
company is exposed to market changes in these industries. EB believes that
expanding the customer base will reduce dependence on individual companies and
that the company will thereby be mainly affected by the general business climate
in automotive and telecommunication industries. However, some parts of EB's
business are more sensitive to customer dependency than others. Respectively,
this may translate as accumulation of risk with respect to outstanding
receivables and ultimately with respect to credit losses. The more specific
market outlook is presented under the "Business Segments' development during the
first quarter 2010 and market outlook" section.
EB's operative business risks are mainly related to following items:
uncertainties and short visibility on customers' product program decisions,
their make or buy decisions and on the other hand, their decisions to continue,
downsize or terminate current product programs, ramping up and down project
resources, timing and on the other hand successful utilization of the most
important technologies and components, competitive situation and potential
delays in the markets, timely closing of customer and supplier contracts with
reasonable commercial terms, delays in R&D projects, activations based on
customer contracts, obsolescence of inventories and technology risks in product
development causing higher than planned R&D costs. In addition there are
typical industry warranty and liability risks involved in selling EB's services,
solutions and products. Product delivery business model includes such risks as
high dependency on actual product volumes, development of the cost of materials
and production yields. The abovementioned risks may manifest themselves as
higher cost of product delivery, and ultimately, as lower profit. Revenues
expected to come from new products for existing and new customers include normal
timing risks.
More information on the risks and uncertainties affecting EB can be found on the
Company's website at www.elektrobit.com <http://www.elektrobit.com/>
STATEMENT OF FINANCIAL POSITION AND FINANCING
The figures presented in the statement of financial position of March 31, 2010,
are compared with the statement of financial position of December 31, 2009
(MEUR).
3/2010 12/2009
Non-current assets 38.5 39.4
Current assets 126.8 120.8
Total assets 165.3 160.2
Share capital 12.9 12.9
Other equity 73.7 99.5
Minority interest 0.7 0.4
Total shareholders' equity 87.4 112.8
Non-current liabilities 13.5 15.0
Current liabilities 64.4 32.4
Total shareholders' equity and liabilities 165.3 160.2
Net cash flow from operations during the period under review:
+ net profit +/- adjustment of accrual basis items EUR +3.2 million
+ decrease in net working capital EUR +8.7 million
- interest, taxes and dividends EUR -1.2 million
= cash generated from operations EUR 10.6 million
- net cash used in investment activities EUR -0.9 million
- net cash used in financing EUR -1.7 million
= net change in cash and cash equivalents EUR +8.0 million
The amount of accounts and other receivables, booked in current receivables, was
EUR 57.3 million (EUR 59.3 million on December 31, 2009). Accounts and other
payables, booked in interest-free current liabilities, were 59.7 million
including the intended distribution of funds from the share premium fund of EUR
25.9 million which was recognized in 1Q 2010 (EUR 27.5 million on December
31, 2009).
The amount of non-depreciated consolidation goodwill at the end of the period
under review was EUR 18.5 million (EUR 18.5 million on December 31, 2009).
The amount of gross investments in the period under review was EUR 1.1 million,
consisting of replacement investments. Net investments for the reporting period
totaled EUR 1.1 million. The total amount of depreciation during the period
under review was EUR 2.0 million, including EUR 0.5 million of depreciation
owing to business acquisitions.
The amount of interest-bearing debt at the end of the reporting period was EUR
15.1 million. The distribution of net financing expenses on the income statement
was as follows:
interest, dividend and other financial income EUR 0.2 million
interest expenses and other financial expenses EUR -0.2 million
foreign exchange gains and losses EUR -1.0 million
EB's equity ratio at the end of the period was 56.0 per cent (71.5 per cent at
the end of 2009).
The figures from the period under review includes the statutory reserves EUR
2.0 million.
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 EUR 16.0 million.
PERSONNEL
EB employed an average of 1537 people between January and March 2010. At the end
of March, EB had 1543 employees (1528 at the end of 2009). A significant part of
EB's personnel are product development engineers.
FLAGGING NOTIFICATIONS
There were no changes in 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.
RESOLUTIONS MADE BY THE ANNUAL GENERAL MEETING
The Annual General Meeting held on March 25, 2010, decided on the following
topics:
BOARD OF DIRECTORS AND AUDITOR
The General Meeting fixed the number of member of the Board of Directors to five
(5). Mr. Jorma Halonen, Mr. Juha Hulkko, Mr. Seppo Laine, Mr. Staffan Simberg
and Mr. Erkki Veikkolainen were elected members of the Board of Directors. The
term of office of the members of the Board of Directors expires at the end of
the next Annual General Meeting following the election.
At its assembly meeting held on March 25, 2010, the Board of Directors has
elected Mr. Seppo Laine Chairman of the Board. Further, the Board of Directors
has resolved to keep the Audit and Financial Committee with Mr. Staffan Simberg
(Chairman of the Committee) and Mr. Seppo Laine as Committee members. There are
no other committees and thus the previous business segment based committees,
Automotive and Wireless Committees, will be discontinued.
The General Meeting re-elected Ernst & Young Oy, authorized public accountant
firm, auditor of the Company. Ernst & Young Oy notified that Mr. Jari Karppinen
will act as responsible auditor.
THE AUTHORIZATION OF THE BOARD OF DIRECTORS TO DECIDE ON THE REPURCHASE OF OWN
SHARES
The General Meeting decided to authorize 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 9.66 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 share 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 held on March 19, 2009 to decide on the repurchase
of the Company's own shares. The Authorization is effective until June 30, 2011.
THE AUTHORIZATION OF THE BOARD OF DIRECTORS TO DECIDE ON THE ISSUANCE OF SHARES
AS WELL AS THE ISSUANCE OF OPTIONS AND OTHER SPECIAL RIGHTS ENTITLING TO SHARES
The General Meeting decided to authorize the Board of Directors to decide on the
issuance of the shares as well as the issuance of options 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 19.32 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 March 19, 2009 to decide on the issuance of shares as well as the issuance of
options and other special rights entitling to shares. The authorization is
effective until June 30, 2011.
DISTRIBUTION OF FUNDS FROM THE SHARE PREMIUM FUND
The General Meeting decided in accordance with the proposal of the Board of
Directors that the shareholders will be distributed EUR 0.20 per share from the
parent company's share premium fund, corresponding at the date of the General
Meeting an aggregate amount of EUR 25,882,538 based on the number of shares,
provided that the Company will receive consent for this from the Finnish
National Board of Patents and Registration. The General Meeting further decided
to authorize the Board of Directors to decide on the record date and payment
date of the distribution as soon as possible after the consent of the Finnish
National Board of Patents and Registration on the distribution of the share
premium fund has been received, which is expected to take place in August 2010,
at the earliest. The Board of Directors will, as a result of the decision of the
General Meeting, amend the share subscription right for the option rights
2005B, 2005C, 2005D, 2006A, 2008A and 2008B by reducing the share subscription
price by the same amount per share that is distributed from the share premium
fund, i.e. by EUR 0.20. The intended distribution of funds from the share
premium fund was recognized in 1Q/2010.
TRANSFER OF THE FUNDS FROM THE SHARE PREMIUM FUND TO THE INVESTED NON-RESTRICTED
EQUITY FUND
The General Meeting decided in accordance with the proposal of the Board of
Directors that the share premium fund in the parent company's balance sheet as
at December 31, 2009 will be decreased by transferring to the Company's invested
non-restricted equity fund all the funds remaining in the share premium fund
after the distribution of the share premium fund, provided that the Company will
receive consent for the decrease from the Finnish National Board of Patents and
Registration. The decrease in the share premium fund becomes effective when the
procedure has been concluded.
DIVIDEND FROM 2009
The General Meeting decided in accordance with the proposal of the Board of
Directors that no dividend shall be distributed.
AMENDMENT OF THE ARTICLES OF ASSOCIATION
The General Meeting decided in accordance with the proposal of the Board of
Directors to amend section 7 of the Articles of Association of the Company so
that notice to the General Meeting shall be delivered three weeks before the
General Meeting, at the latest, however no less than 9 days prior to the record
date of the General Meeting.
Oulu, April 29, 2010
EB, Elektrobit Corporation
The Board of Directors
Further Information:
Jukka Harju
CEO
Tel. +358 40 344 5466
Panu Miettinen
CFO
Tel. +358 40 344 5338
Distribution:
NASDAQ OMX Helsinki
Principal media
EB, ELEKTROBIT CORPORATION, INTERIM REPORT JANUARY- MARCH 2010
(unaudited)
The Interim Report has been prepared in accordance with IAS 34 Interim Financial
Reporting.
CONSOLIDATED STATEMENT OF 1-3/2010 1-3/2009 1-12/2009
COMPREHENSIVE INCOME (MEUR)
3 months 3 months 12 months
NET SALES 41.5 42.8 153.8
Other operating income 0.6 0.6 4.0
Change in work in progress and
finished goods 0.1 -0.3 -0.9
Work performed by the undertaking for
its own purpose
and capitalized 0.0 0.1 0.4
Raw materials -3.3 -2.2 -8.3
Personnel expenses -24.2 -24.6 -90.9
Depreciation -2.0 -2.7 -9.7
Other operating expenses -11.1 -13.7 -49.8
OPERATING PROFIT (LOSS) 1.7 0.0 -1.4
Financial income and expenses -1.0 -0.9 -0.6
RESULT BEFORE TAXES 0.7 -0.9 -2.0
Income taxes -1.1 -0.2 -1.3
RESULT FOR THE PERIOD FROM CONTINUING
OPERATIONS -0.3 -1.1 -3.3
Result after taxes for the period
from discontinued
operations 1.3
RESULT FOR THE PERIOD -0.3 -1.1 -2.0
Other comprehensive income:
Exchange differences on translating
foreign operations 0.7 0.3 -0.3
Other comprehensive income for the
period total 0.7 0.3 -0.3
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD 0.3 -0.8 -2.4
Result for the period attributable to
Equity holders of the parent -0.6 -1.1 -2.2
Minority interest 0.3 0.2
Total comprehensive income
attributable to
Equity holders of the parent 0.0 -0.8 -2.5
Minority interest 0.3 0.2
Earnings per share EUR continuing
operations
Basic earnings per share -0.01 -0.01 -0.03
Diluted earnings per share -0.00 -0.01 -0.03
Earnings per share EUR discontinued
operations
Basic earnings per share 0.01
Diluted earnings per share 0.01
Earnings per share EUR continuing and
discontinued
Operations
Basic earnings per share -0.01 -0.01 -0.02
Diluted earnings per share -0.00 -0.01 -0.02
Average number of shares, 1000 pcs 129 413 129 413 129 413
Average number of shares, diluted,
1000 pcs 130 380 129 413 129 580
CONSOLIDATED STATEMENT OF FINANCIAL March. 31 2010 March. 31 2009 Dec. 31 2009
POSITION (MEUR)
ASSETS
Non-current assets
Property, plant and equipment 10.4 14.9 11.4
Goodwill 18.5 18.3 18.5
Intangible assets 8.8 10.0 8.7
Other financial assets 0.3 0.4 0.3
Receivables 0.4 0.8 0.4
Deferred tax assets 0.1 0.1
Non-current assets total 38.5 44.4 39.4
Current assets
Inventories 2.4 2.6 2.4
Trade and other receivables 57.3 62.9 59.3
Financial assets at fair value
through profit or loss 50.4 0.2 40.2
Cash and short term deposits 16.7 62.8 18.8
Current assets total 126.8 128.5 120.8
TOTAL ASSETS 165.3 172.9 160.2
EQUITY AND LIABILITIES
Equity attributable to equity holders
of the parent
Share capital 12.9 12.9 12.9
Share premium 64.6 64.6
Invested non-restricted equity fund 38.7
Translation difference 0.5 0.5 -0.1
Retained earnings 34.5 36.8 35.0
Minority interest 0.7 0.4
Total equity 87.4 114.8 112.8
Non-current liabilities
Deferred tax liabilities 2.3 2.5 2.3
Provisions 0.8 0.8 0.9
Interest-bearing liabilities 10.4 14.2 11.8
Other liabilities 0.2
Non-current liabilities total 13.5 17.7 15.0
Current liabilities
Trade and other payables 56.9 30.8 24.4
Financial liabilities at fair value
through profit or loss 0.4 0.4
Pension obligations 1.2 1.2 1.2
Provisions 1.2 2.3 1.5
Interest-bearing loans and
borrowings 4.6 6.2 4.9
Current liabilities total 64.4 40.4 32.4
Total liabilities 77.9 58.1 47.3
165.3 172.9 160.2
TOTAL EQUITY AND LIABILITIES
CONSOLIDATED STATEMENT OF CASH FLOWS (MEUR) 1-3/2010 1-3/2009 1-12/2009
3 months 3 months 12 months
CASH FLOW FROM OPERATING ACTIVITIES
Result for the period -0.3 -1.1 -2.0
Adjustment of accrual basis items 3.5 3.3 7.7
Change in net working capital 8.7 -4.0 -3.8
Interest paid on operating activities -1.2 -1.6 -2.0
Interest received from operating activities 0.2 0.9 1.6
Other financial income and expenses, net received 0.0 0.0 0.0
Income taxes paid -0.2 -0.3 -1.1
NET CASH FROM OPERATING ACTIVITIES 10.6 -2.7 0.4
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of business unit, net of cash acquired -0.7
Disposal of business unit, net of cash acquired -0.9 -0.6
Purchase of property, plant and equipment -0.1 -0.4 -1.2
Purchase of intangible assets -0.8 -0.1 -1.5
Purchase of other investments -0.0 -0.0 -0.1
Sale of property, plant and equipment 0.0 0.0 0.3
Sale of intangible assets 0.0 0.0 0.1
Proceeds from sale of investments 0.0 0.0 0.2
NET CASH FROM INVESTING ACTIVITIES -0.9 -1.4 -3.4
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from borrowing 0.2 1.6
Repayment of borrowing -1.0 -0.9 -3.9
Payment of finance liabilities -0.8 -1.1 -4.1
NET CASH FROM FINANCING ACTIVITIES -1.7 -1.7 -6.5
NET CHANGE IN CASH AND CASH EQUIVALENTS 8.0 -5.8 -9.5
Cash and cash equivalents at beginning of period 59.1 68.6 68.6
Cash and cash equivalents at end of period 67.1 62.8 59.1
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (MEUR)
A = Share capital
B = Share premium
C = Invested non-restricted equity fund
D = Retained earnings
E = Minority share
F = Total equity
A B C D E F
Equity on January 1, 2009 12.9 64.6 37.6 115.1
Share-related compensation 0.2 0.2
Total comprehensive income for the period -0.8 -0.8
Other items 0.3 0.3
Equity on March 31, 2009 12.9 64.6 37.3 114.8
Equity on January 1, 2010 12.9 64.6 34.9 0.4 112.8
Distribution of funds from the share
premium fund -25.9 -25.9
Transfer from the share premium fund -38.7 38.7 0.0
Share-related compensation 0.3 0.3
Total comprehensive income for the period 0.0 0.0
Other items -0.1 0.3 0.2
Equity on March 31, 2010 12.9 0.0 38.7 35.0 0.7 87.4
NOTES TO THE FINANCIAL STATEMENT BULLETIN
Accounting principles for the Interim Report:
The same accounting policies and methods of computation are followed in the
interim report as compared with annual financial statements.
Explanatory comments about the seasonality or cyclicality of reporting period
operations:
The Company operates in business areas which are subject to seasonal
fluctuations.
The nature and amount of items affecting assets, liabilities, equity, net
income, or cash flows which are unusual because of their nature, size or
incidence:
Distribution of funds from the share premium fund:
The General Meeting held on March 25, 2010 decided in accordance with the
proposal of the Board of Directors that the shareholders will be distributed EUR
0.20 per share from the parent company's share premium fund, corresponding at
the date of the General Meeting an aggregate amount of EUR 25,882,538 based on
the number of shares, provided that the company will receive consent for this
from the Finnish National Board of Patents and Registration. The resolution was
booked in group in March 2010.
Transfer of the funds from the share premium fund to the invested non-restricted
equity fund:
The General Meeting decided in accordance with the proposal of the Board of
Directors that the share premium fund in the parent company's balance sheet as
at 31 December 2009 will be decreased by transferring to the company's invested
non-restricted equity fund all the funds remaining in the share premium fund
after the distribution of the share premium fund, provided that the company will
receive consent for the decrease from the Finnish National Board of Patents and
Registration. The resolution was booked in group in March 2010.
Payment of dividend:
The General Meeting held on March 25, 2010 decided in accordance with the
proposal of the Board of Directors that no dividend shall be distributed.
SEGMENT INFORMATION (MEUR)
OPERATING SEGMENTS 1-3/2010 1-3/2009 1-12/2009
3 months 3 months 12 months
Automotive
Net sales to external customers 18.5 16.4 61.5
Net sales to other segments 0.0 0.0 0.0
Net sales total 18.5 16.4 61.5
Operating profit (loss) 0.9 -0.7 -3.8
Wireless
Net sales to external customers 22.8 26.3 91.6
Net sales to other segments 0.0 0.1 0.2
Net sales total 22.8 26.4 91.8
Operating profit (loss) 0.9 0.5 1.0
OTHER ITEMS
Other items
Net sales to external customers 0.2 0.1 0.6
Operating profit (loss) -0.1 0.2 1.3
Eliminations
Net sales to other segments -0.0 -0.2 -0.2
Operating profit (loss) 0.0 0.0 0.0
Group total
Net sales to external customers 41.5 42.8 153.8
Operating profit (loss) 1.7 0.0 -1.4
Net sales of geographical areas (MEUR) 1-3/2010 1-3/2009 1-12/2009
3 months 3 months 12 months
Net sales
Europe 23.0 26.6 91.4
Americas 15.8 11.9 49.2
Asia 2.7 4.4 13.2
Net sales total 41.5 42.8 153.8
Material events subsequent to the end of the interim period not reflected in the
financial statements for the interim period:
There are no such material events subsequent to the end of the interim report
period that have not been reflected in this report.
Related party transactions: 1-3/2010 1-3/2009 1-12/2009
Employee benefits for key management and stock
option expenses total 0.6 0.6 2.2
CONSOLIDATED STATEMENT OF 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
COMPREHENSIVE INCOME 2010 2009 2009 2009 2009
BY QUARTER (MEUR) 3 months 3 months 3 months 3 months 3 months
NET SALES 41.5 40.1 33.5 37.4 42.8
Other operating income 0.6 1.2 0.9 1.3 0.6
Change in work in progress and
finished goods 0.1 -0.1 0.4 -0.9 -0.3
Work performed by the
undertaking
for its own purpose and
capitalized 0.0 0.0 0.0 0.3 0.1
Raw materials -3.3 -2.5 -2.1 -1.5 -2.2
Personnel expenses -24.2 -23.3 -20.3 -22.7 -24.6
Depreciation -2.0 -2.2 -2.4 -2.4 -2.7
Other operating expenses -11.1 -12.7 -10.8 -12.6 -13.7
OPERATING PROFIT (LOSS) 1.7 0.5 -0.8 -1.1 0.0
Financial income and expenses -1.0 -0.3 0.2 0.5 -0.9
RESULT BEFORE TAXES 0.7 0.1 -0.6 -0.7 -0.9
Income taxes -1.1 -0.4 0.1 -0.9 -0.2
RESULT FOR THE PERIOD FROM
CONTINUING OPERATIONS -0.3 -0.3 -0.5 -1.6 -1.1
Result after taxes for the
period
from discontinued operations 1.0 0.3
RESULT FOR THE PERIOD -0.3 0.7 -0.1 -1.6 -1.1
Other comprehensive income
for the period total 0.7 0.3 -0.4 -0.5 0.3
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 0.3 1.0 -0.5 -2.1 -0.8
Result for the period
attributable to:
Equity holders of the parent -0.6 0.6 -0.2 -1.6 -1.1
Minority interest 0.3 0.1 0.0
Total comprehensive income
for the period attributable to:
Equity holders of the parent 0.0 0.9 -0.6 -2.1 -0.8
Minority interest 0.3 0.1 0.0
CONSOLIDATED STATEMENT OF March. 31, Dec. 31, Sept. 30, June 30, March 31,
FINANCIAL POSITION (MEUR) 2010 2009 2009 2009 2009
ASSETS
Non-current assets
Property, plant and equipment 10.4 11.4 12.2 13.9 14.9
Goodwill 18.5 18.5 18.5 18.5 18.3
Intangible assets 8.8 8.7 8.8 9.2 10.0
Other financial assets 0.3 0.3 0.3 0.4 0.4
Receivables 0.4 0.4 0.8 0.8 0.8
Deferred tax assets 0.1 0.1 0.0
Non-current assets total 38.5 39.4 40.7 42.7 44.4
Current assets
Inventories 2.4 2.4 2.6 2.2 2.6
Trade and other receivables 57.3 59.3 55.6 60.4 62.9
Financial assets at fair
value
through profit or loss 50.4 40.2 0.3 0.2 0.2
Cash and short term deposits 16.7 18.8 62.2 60.3 62.8
Current assets total 126.8 120.8 120.7 123.2 128.5
TOTAL ASSETS 165.3 160.2 161.4 165.9 172.9
EQUITY AND LIABILITIES
Equity attributable to equity
holders
of the parent
Share capital 12.9 12.9 12.9 12.9 12.9
Share premium 64.6 64.6 64.6 64.6
Invested non-restricted
equity fund 38.7
Translation difference 0.5 -0.1 -0.4 -0.0 0.5
Retained earnings 34.5 35.0 35.1 35.2 36.8
Minority interest 0.7 0.4 0.0
Total equity 87.4 112.8 112.2 112.7 114.8
Non-current liabilities
Deferred tax liabilities 2.3 2.3 2.2 2.3 2.5
Provisions 0.8 0.9 1.3 1.7 0.8
Interest-bearing liabilities 10.4 11.8 12.5 13.6 14.2
Other liabilities 0.0 0.1 0.1 0.2
Non-current liabilities total 13.5 15.0 16.2 17.6 17.7
Current liabilities
Trade and other payables 56.9 24.4 24.5 26.3 30.8
Financial liabilities at fair
value
through profit or loss 0.4 0.4
Pension obligations 1.2 1.2 1.2 1.2 1.2
Provisions 1.2 1.5 1.9 1.9 2.3
Interest-bearing loans and
Borrowings (non-current) 4.6 4.9 5.2 6.3 6.2
Current liabilities total 64.4 32.4 32.9 35.7 40.4
Total liabilities 77.9 47.3 49.1 53.3 58.1
TOTAL EQUITY AND LIABILITIES 165.3 160.2 161.4 165.9 172.9
1-3/ 10-12/ 7-9/ 4-6/ 1-3/
CONSOLIDATED STATEMENT
OF CASH FLOWS BY QUARTER 2010 2009 2009 2009 2009
3 months 3 months 3 months 3 months 3 months
Net cash from operating
activities 10.6 -0.5 4.6 -1.0 -2.7
Net cash from investing
activities -0.9 -0.7 -0.7 -0.7 -1.4
Net cash from financing
activities -1.7 -1.9 -2.1 -0.7 -1.7
Net change in cash and cash
8.0 -3.1 1.8 -2.5 -5.8
equivalents
FINANCIAL PERFORMANCE RELATED RATIOS 1-3/2010 1-3/2009 1-12/2009
3 months 3 months 12 months
STATEMENT OF COMPREHENSIVE INCOME (MEUR)
Net sales 41.5 42.8 153.8
Operating profit (loss) 1.7 0.0 -1.4
Operating profit (loss), % of net sales 4.2 0.0 -0.9
Result before taxes 0.7 -0.9 -2.0
Result before taxes, % of net sales 1.8 -2.1 -1.3
Result for the period -0.3 -1.1 -3.3
PROFITABILITY AND OTHER KEY FIGURES
Interest-bearing net liabilities, (MEUR) -52.0 -42.4 -42.4
Net gearing, -% -59.5 -36.9 -37.6
Equity ratio, % 56.0 68.2 71.5
Gross investments, (MEUR) 1.1 0.8 4.0
Average personnel during the period 1537 1663 1589
Personnel at the period end 1543 1628 1528
AMOUNT OF SHARE ISSUE ADJUSTMENT March. 31, March. 31, Dec. 31,
(1,000 pcs) 2010 2009 2009
At the end of period 129 413 129 413 129 413
Average for the period 129 413 129 413 129 413
Average for the period diluted with stock
options 130 380 129 413 129 580
1-3/2010 1-3/2009 1-12/2009
STOCK-RELATED FINANCIAL RATIOS (EUR)
3 months 3 months 12 months
Basic earnings per share -0.01 -0.01 -0.03
Diluted earnings per share -0.00 -0.01 -0.03
Equity *) per share 0.67 0.89 0.87
*) Equity attributable to equity holders of
the parent
MARKET VALUES OF SHARES (EUR) 1-3/2010 1-3/2009 1-12/2009
Highest 1.25 0.46 1.40
Lowest 0.93 0.33 0.33
Average 1.08 0.39 0.62
At the end of period 1.23 0.37 0.94
Market value of the stock, (MEUR) 159.2 47.9 121.6
Trading value of shares, (MEUR) 4.7 1.6 11.1
Number of shares traded, (1,000 pcs) 4 349 4 025 17 822
Related to average number of shares % 3.4 3.1 13.8
SECURITIES AND CONTINGENT LIABILITIES March. 31, March. 31, Dec. 31,
(MEUR) 2010 2009 2009
AGAINST OWN LIABILITIES
Floating charges 3.1 3.1 3.1
Pledges 0.9 0.9 1.0
Mortgages are pledged for liabilities totaled 7.7 9.5 8.6
AGAINST OTHER LIABILITIES
Guarantees 2.7 4.0 3.8
Other liabilities 10,0
OTHER DIRECT AND CONTINGENT LIABILITIES
Rental liabilities
Falling due in the next year 5.2 5.3 5.9
Falling due after one year 16.7 15.8 17.9
Other contractual liabilities
Falling due in the next year 3.5 4.6 4.3
Falling due after one year 0.5 1.3 0.7
NOMINAL VALUE OF CURRENCY DERIVATIVES March. 31, March. 31, Dec. 31,
(MEUR) 2010 2009 2009
Foreign exchange forward contracts
Market value -0.4 0.2 -0.3
Nominal value 11.0 10.1 11.0
Purchased currency options
Market value 0.0 0.3 0.1
Nominal value 5.0 7.0 11.5
Sold currency options
Market value -0.0 -0.3 -0.1
5.0 14.0 23.0
Nominal value
[HUG#1409738]
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