2010-02-09 07:01:00 CET
2010-02-09 07:01:13 CET
REGULATED INFORMATION
Larox Oyj - Financial Statement Release
LAROX GROUP FINANCIAL STATEMENT 2009
Larox Corporation Annual Financial Statement on 9.2.2010 at 08.00 am LAROX GROUP FINANCIAL STATEMENT 2009 Highlights of 2009: - Total of new orders received decreased by 41.0% in comparison to the previous year. The total of new orders for the year 2009 was EUR 109.1 million (EUR 184.8 million). - The order backlog at the end of the year was 53.6% lower than one year earlier totaling EUR 33.4 million (EUR 72.0 million). - Net sales were EUR 150.2 million (EUR 208.0 million) with decrease of 27.8%. Net sales of the fourth quarter were EUR 34.2 million (EUR 64.1 million). - Operating profit clearly decreased and was EUR -1.8 million (EUR 16.6 million), i.e. -1.2% (8.0%) of net sales. Operating profit without extraordinary items was EUR 4.6 million (EUR 16.6 million), i.e. 3.0% (8.0%) of net sales. - Profit before tax was EUR -2.7 million (EUR 14.0 million), i.e. -1.8% (6.7%) of net sales. - Net cash flow from operating activities was EUR 10.0 million (EUR 10.8 million). - Earnings per share were EUR -0.69 (EUR 1.07). - The Board of Directors proposes that no dividends be paid for the year 2009. Highlights of Q4/2009: - New orders received totaled EUR 30.3 million (EUR 25.8 million). - Net sales were EUR 34.2 million (EUR 64.1 million). - Operating profit was EUR -1.2 million (EUR 4.9 million), i.e. -3.4% (7.7%) of net sales. - Operating profit without extraordinary items was EUR 0.4 million (EUR 4.9 million), i.e. 1.0% (7.7%) of net sales. - Profit before tax for the fourth quarter totaled EUR -1.4 million (EUR 3.7 million), i.e. -4.1% (5.8%) of net sales. - The main shareholders of Larox Corporation realized with Outotec Oyj the share transactions which led to transfer of control and Outotec Oyj commenced a mandatory public tender offer for all the remaining Larox shares. - Due to the change in ownership Larox lost confirmed losses in taxation of certain subsidiaries and wrote off about EUR 4 million of deferred tax assets. - Larox Corporation Board of Directors and Mr. Toivo Matti Karppanen, President and CEO of Larox, agreed that the term of office of Mr. Karppanen would end at the end of 2009. Larox Corporation Board of Directors appointed Mr. Juhana Ylikojola, M.Sc.(Engineering), Larox Corporation's new President and CEO, as of 1 January 2010. Events After the Review Period: According to the company announcement by Outotec Oyj on 27 January 2010, the shares offered in the mandatory public tender offer by Outotec Oyj, started on 28 December 2009 and expired on 22 January 2010, together with all the shares already owned by Outotec Oyj, represent approx. 98.5% of all Larox shares and approx. 99.7% of all the votes given by Larox shares. Outotec has pursuant to its ownership exceeding nine tenths (9/10) gained a right to redeem all the series B shares held by other remaining shareholders of Larox at fair value in accordance with Chapter 18, Section 1 of the Finnish Companies Act. Outotec has on 3 February 2010 notified Larox of its decision to exercise its redemption right and presented its redemption claim for the remaining shares in Larox in accordance with the Finnish Companies Act. Mr. Juhana Ylikojola, President and CEO, Larox Corporation: “The 2009 fiscal year was challenging for Larox as the global economic recession weakened demand for industrial filters and aftermarket services. Our net sales declined by 27.8 percent from the previous year's record level to EUR 150.2 million. Our operating result was negative due to non-recurring costs related to restructuring. Last year was difficult for all of our business areas. The unstable situation in the global economy generated uncertainty regarding demand for the products of our customers. Our customers in the mining, metallurgy and chemical process industries delayed their investment decisions, cut their costs and reduced their production capacity. Already in spring 2009 Larox began implementing several measures to adjust the organizational and cost structure to the weaker situation regarding demand. The aim of these measures was to maintain Larox's profitability at a satisfactory level and to achieve annual savings of EUR 6.5 million. These adjustment measures will be finalized during spring 2010, and we expect the cost savings to be accomplished fully in 2011. The adjustment measures taken in 2009 generated non-recurring costs, as a result of which the company's result for the year was negative. It should be noted, however, that in spite of the recession and weakened demand our operating profit without extraordinary items was EUR 4.6 million. We also succeeded in maintaining our financial position on a good level thanks to active net working capital management. The operations of our Chinese subsidiary, which was established at the end of 2008, got underway well. Our first Chinese made filters were delivered to customers at the start of autumn 2009. The operations of our Russian subsidiary also got off to a promising start. Larox India was registered in November 2009, and operations have already started up. Having own subsidiary significantly improves our ability to strengthen our market position in this rapidly growing market. Larox has systematically developed its products and services while expanding its product offerings to cover ever-larger projects and customer needs. In our aftermarket operations we have developed and productized new service packages and products, covering the entire lifespan of the filtration solution. BUSINESS OPERATIONS Group order backlog at the end of December was 53.6% lower than one year before totaling EUR 33.4 million (EUR 72.0 million). The amount of new orders received during the review period was EUR 109.1 million (EUR 184.8 million). Net sales of the review period were EUR 150.2 million (EUR 208.0 million). Approximately 93% of Group net sales were generated by exports and foreign operations. Net sales by geographical division were as follows: ----------------------------------------------------------------------- | | 1-12/2009 | 1-12/2008 | ----------------------------------------------------------------------- | North, Central and South America | 31,1% | 33,1% | ---------------------------------------------------------------------- | Asia and Australasia | 32,3% | 22,0% | ---------------------------------------------------------------------- | Europe, Middle East and | 36,6% | 44,9% | | Africa | | ---------------------------------------------------------------------- As part of the Group-wide adjustment measures Larox closed the local planning and procurement department in the Netherlands. In addition, the aftermarket service business of Larox B.V. was transferred under the name of Larox Oyj at the year end. CHANGES IN GROUP STRUCTURE During 2008 Larox's Chinese (Larox Filtration Technology (Suzhou) Co. Ltd. and Russian (OOO Larox) subsidiaries got their business licenses and started their operations according to plans during the first half of the review period. Mentioned Larox's subsidiaries are strengthening the Group's position in the growing markets of Russia and Asia. During the review period Larox established a subsidiary in India. Larox India Private Limited was registered on 17 November 2009 and it is responsible both for Larox's aftermarket services and filter sales development in India. The subsidiary is located in Bangalore and it is expected to be fully operational during the 2nd quarter of 2010 at the latest. Following the share transactions between the main shareholders of Larox and Outotec Oyj in December 2009, the control of the Larox Group was transferred and Larox Oyj became a subsidiary of Outotec Oyj. PROFITS AND PROFITABILITY The Group showed an operating profit of EUR -1.8 million (EUR 16.6 million), i.e. -1.2% (8.0%) of net sales. Operating profit without extraordinary items was EUR 4.6 million (EUR 16.6 million), i.e. 3.0% (8.0%) of net sales. Larox Group's result before tax totaled EUR -2.7 million (EUR 14.0 million), i.e. -1.8% (6.7%) of net sales. Earnings per share were EUR -0.69 (EUR 1.07). NET SALES AND PROFITABILITY DURING THE FOURTH QUARTER For the fourth quarter of the year the consolidated net sales totaled EUR 34.2 million (EUR 64.1 million), operating profit of EUR -1.2 million (EUR 4.9 million) and profit before taxes was EUR -1.4 million (EUR 3.7 million). Without extraordinary items operating profit was EUR 0.4 million (EUR 4.9 million). Earnings per share were EUR -0.56 (EUR 0.30) The amount of new orders received during the fourth quarter of the year totaled EUR 30.3 million (EUR 25.8 million). The last quarter of 2009 was better in new orders received than four previous quarters. BALANCE SHEET AND FINANCING At the turn of the year 2009 the Group balance sheet totaled EUR 97.0 million (EUR 118.1 million). Net financing costs totaled EUR 0.9 million (EUR 2.7 million), i.e. 0.6% (1.3%) of net sales. Net cash flow from operating activities was EUR 10.0 million (EUR 10.8 million), which is a result of active net working capital management. The equity ratio was 30.4% (32.3%) and debt-equity ratio 1.21 (1.07). INVESTMENTS Larox Group's investments totaled EUR 4.3 million (EUR 7.4 million) including machinery investments especially in Finland and in China and furthermore IT applications, product development and replacement investments. PERSONNEL The average number of personnel employed by the Group during the review period was 584 (562). At the end of the review period it was 562 (593) of whom 252 (279) worked for the parent company. The increase in the number of the personnel can be seen in Asia and especially in China where the new production unit was opened. On the other hand the number of the personnel decreased in other areas due to the Group-wide adjustment measures. At the end of the year the number of Group personnel by area was as follows: AREA 2009 2008 Finland 272 303 Other Europe 103 130 North America 29 35 South and Central America 47 49 Asia and Australasia 81 39 Middle East and Africa 30 37 Personnel total 562 593 In the changed market situation Larox concentrated on adjusting its personnel resources to meet the needs of the business and on the development of the change management. The adjustment measures are not shown in full in the number of personnel at the end of the year. Employee benefits include EUR 5.7 million extraordinary items due to the Group-wide adjustment measures, reorganizing of business operations and termination of the key personnel plan: 1000 EUR 1.1.-31.12.2009 1.1.-31.12.2008 Employee benefits expenses, total 41 501 36 360 THE BOARD OF DIRECTORS AND AUDITORS In the Larox Corporation annual general mee¬ting of shareholders on 26 March 2009 Mr. Timo Vartiainen, Ms. Katariina Aaltonen, Mr. Teppo Taberman, Mr. Thomas Franck and Mr. Matti Ruotsala were re-elected to the Board. Mr. Timo Vartiainen was elected Chairman of the Board in the organizational meeting of the Board of Directors held immediately after the annual general meeting of shareholders. The annual general meeting of sharehol¬ders elected the following main auditors: auditing society PricewaterhouseCoopers Oy with primary responsibility APA Kim Karhu. ADMINISTRATION In 2009 the main principles of corporate governance, recommended by the NASDAQ OMX Helsinki Ltd, the Central Chamber of Commerce and the Confe¬deration of Finnish Industries (EK) were adopted in Larox Corporation. A separate Corporate Governance Statement will be published by Larox Corporation at the same time as the Report of the Board of Directors and the Financial Statement 2009. The company's Board of Directors has confir¬med the Corporate Governance principles, which can be found on the Larox Corporation website: www.larox.com. RISKS AND UNCERTAINTY FACTORS Risk management is part of Larox Group's management and control system. It aims at preventing negative phenomena, support the Group strategy and ensure continuity of its operations and the wellbeing of its personnel. According to Larox risks management system risks are divided into the following four risk categories: business, operational, financial risks and risk of damage. Larox operates on a global market where global economic trends affect its business development, but the company is not at the mercy of changes in any particular market area. The recent political unrest in sub-equatorial Africa has caused the most uncertainty in Larox's business. The demand risk of Larox products has increased essentially because of the global economic challenges. The uncertainty in demand, which appeared at the end of 2008, continued during the year of 2009. The international recession has decreased Larox's customers' investments and their operational volumes when at the same time some customers have been forced to start various cost saving measures. Some customers have postponed their decisions for investments. Due to these reasons, competition has further increased. There are certain branches of industry in Larox's clientele where less effect of the economic crisis has been noticed, such as the food and pharmaceutical industries. Similarly there is less effect in China and India. Larox manages risks related to purchasing and manufacturing already at contract level by tying raw material costs to materials cost index. Furthermore Larox inspects and controls its subcontractors even more than before in accordance with quality systems and by developing logistics. In addition, Larox aims at expanding its cooperation networks in order to avoid excessive dependencies on key-suppliers. Larox improves also possibilities for product technology transfers by creating and recording the procedures for more secured world-wide technology transfers. Due to the economic crisis, skilled personnel are now more readily available. Larox attempts to tackle other personnel-related challenges by training the personnel and by creating various types of incentive bonus and motivation schemes. As a global company, Larox also faces risks associated with the reliability of IT systems and data security. Larox fights off these risks by using reliable contract partners and by training employees. The uncertainty about the financial situation of customer companies increases Larox's credit loss risk, too. Larox attempts to control these risks by applying more suitable payment terms, by monitoring operations actively and by reacting to payment delays more efficiently. On the initiative of some customers Larox has negotiated and agreed on the postponement of some orders in the order backlog to a later date than originally agreed. The euro, U.S. dollar, Australian dollar and South African rand are Larox's main invoicing currencies. Larox's principal buying currency is the euro. Larox fights off currency risks by means of various protective measures. Larox manages its liquidity risk by means of efficient cash management. During the review period, Larox increased amounts of available bank limits as well as developed collection of receivables. Larox's liquidity improved during this period. Marginals of the credits of Larox increased during the review period. However, the average interest rate of the credits decreased during the same period as market interests rates have decreased. Larox fights off the risk of damage by following various occupational health and safety schemes and by preparing other strategies and plans for business premises. According to Larox, traffic and other accidents and illnesses during business trips pose the greatest risk of damage. In 2009 there was one fatal accident in Larox's subisidiary in South Africa, causing the death of one employee of Larox's subcontractor. The causes of the accident are under investigation. Further information about risks and risk management is presented in the Group's Internet pages (www.larox.com)in the section of Corporate Governance. ENVIRONMENTAL MATTERS Direct environmental influence of Larox's business is minor. The Group takes care of the proper sorting and further handling of its wastes, including hazardous wastes. The environmental influence of the lifetime of the Larox filters is positive: due to efficient separation techniques the customers can decrease the environmental influence of their production processes. In the applications of mining and metallurgical as well as chemical processing industries Larox filters decrease the energy and water consumption of production processes as well as emissions. AUTHORIZATION GIVEN TO THE BOARD OF DIRECTORS The annual general meeting of shareholders authorized the Board of Directors to decide on shares, stock option rights or special rights referred to in the Finnish Compa¬nies Act chapter 10, paragraph 1 in one or more lots in such a way that based on the authorization the total maximum number of Larox Corporation B-series shares is 500 000 and the authorization was used for 44 350 shares during the fiscal year. The authorization is valid until 30 March 2012. The authorization to the Board of Directors to decide on the purchase of own B-series shares was not used during the review period. The authorization is for the Board of Directors to decide on the purchase of own B-series shares in the following way: The number of own B-series shares to be purchased is 500.000 shares at the maximum. The Board of Directors can purchase these shares only by using the company's unrestricted shareholders' equity in public trading arranged by Nasdaq OMX Helsinki Ltd. at fair value at the date of acquisition in a proportion not pro rata to the shares owned by the shareholders. The authorization is valid for 18 months from the date of the decision by the annual meeting of shareholders. The authorization to the Board of Directors regarding the payment of a possible additional dividend was not used during the review period. The authorization was for the payment of an additional dividend of EUR 0.20 per share at the maximum, should the economic situation of the company allow it. ISSUE OF EQUITY INSTRUMENTS, SUBSCRIPTION OF B-SERIES SHARES BASED ON THE MANAGEMENT INCENTIVE SYSTEM The Board of Directors of Larox Corporation decided on 26 March 2009 on a directed share issue for the reward payment from the measuring period 2007-2008 of the Share Ownership Plan 2007-2010. In the share issue 44,350 Larox Corporation new B shares were issued and conveyed without consideration to the key persons participating in the Share Ownership Plan according to the terms and conditions of the plan. More detailed information on the incentive plan was published on 30 May 2007. The decision on the directed share issue is based on the authorization granted to the Board of Directors by the annual general meeting of shareholders held on 30 March 2007. This decision was announced on 26 March 2009. The directed share issue does not affect the company's share capital. At the end of the period, the company held 1,000 of its own B-shares, which is 0.01% of the total number of shares or 0.002% of the total number of votes. SHARE-BASED INCENTIVE PLAN FOR KEY PERSONNEL Following the share transaction executed on 21 December 2009 between Outotec Oyj and the main shareholders of Larox the authority in Larox Corporation has been transferred to Outotec Oyj. Outotec Oyj made a mandatory tender offer for all of the Company's series A and B shares in December. Due to the above-mentioned changes focused on the Larox Corporation ownership structure and Group structure, and to the Outotec Oyj's mandatory tender offer, the Board of Directors of Larox Corporation decided to change the duration of the key personnel Share Ownership Plan on 29 December 2009 so that the changed Plan will concern years 2007-2009 instead of formerly decided period 2007-2010 In addition, the Board of Directors of Larox Corporation has decided that the restriction period and transfer restrictions of the shares paid as reward for the period of 2007-2008 will terminate and the shares will be freely transferable, and that the company does not pay any reward for the measuring period 2007-2009 and that the company terminates the Share Ownership Plan as of 31 December 2009. SHARES AND SHAREHOLDERS The trading with Larox shares 1 January - 31 December 2009 totaled 2 277 739, which is 24.2% of the total number of shares. The value of the trading totaled EUR 19.0 million. The lowest price of the period was EUR 4.79 and the highest EUR 9.93 per share. The closing trading price of the share was EUR 9.70 per share and the market value of the total capital stock EUR 91.4 million. At the end of 2009 the number of shareholders was 1.597. FUTURE PROSPECTS During 2009 the accumulation of new orders decreased essentially. The order backlog at the end of the year was EUR 33.4 million (EUR 72.0 million) and it is expected to be fully delivered during 2010. However, the amount of new orders during the fourth quarter was bigger than during the previous four quarters. There is still a lot of uncertainty related to demand situation. As part of Outotec Larox will have new opportunities to develop products and increase sales of filtration solutions and aftermarket services. The adjustment measures started in 2009 will increase Larox's relative profitability in 2010. The cost savings will be fully accomplished in 2011. DISTRIBUTION OF PROFIT Parent company's dividends available for the distribution totaled EUR 14.4 million, of which the profit for the fiscal year is EUR 1.6 million. The Board proposes to the annual general meeting of shareholders that no dividends be paid for the year 2009. Lappeenranta on 9 February 2010 Larox Corporation Board of Directors For further information please contact Mr. Juhana Ylikojola President & CEO Tel +358 (0) 20 7687 266 Fax +358 (0) 20 7687 439 E-mail juhana.ylikojola@larox.com Internet www.larox.com Financial publications on 2010 The Board of Directors' report, Financial statement, Auditors' report and Corporate Governance statement will be published in week 7 Altogether three interim reports will be published during the year 2010: The interim report for 1.1.-31.3.2010 on 23 April 2010 The interim report for 1.1.-30.6.2010 on 23 July 2010 The interim report for 1.1.-30.9.2010 on 22 October 2010. Distribution: NASDAQ OMX Helsinki Ltd, central media www.larox.com NOTES TO THE ANNUAL REPORT The review is prepared in accordance with IAS 34 Interim Financial Reporting -standard. The financial statements are prepared in accordance with the same IFRS recognition and measurement principles as in 2008 financial statement. The preparation of the financial statement in accordance with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of income and expenses during the reporting period. The estimates are based on management's best knowledge of current events and actions but actual results may differ from these estimates. All below figures in the financial statements have been adjusted and therefore the added sum of individual figures may differ from the presented added figure. Financial statement information included in this release is audited. -------------------------------------------------------------------------------- | INCOME STATEMENTS, | | | | | | IFRS | | | | | -------------------------------------------------------------------------------- | 1000 EUR | 10-12/2009 | 10-12/2008 | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales | 34 164 | 64 079 | 150 170 | 207 995 | -------------------------------------------------------------------------------- | Other operating | 171 | 2 325 | 1 042 | 4 230 | | income | | | | | -------------------------------------------------------------------------------- | Materials | -13 772 | -33 261 | -70 357 | -107 971 | -------------------------------------------------------------------------------- | External services | -2 281 | -4 737 | -8 127 | -11 146 | -------------------------------------------------------------------------------- | Employee benefits | -10 441 | -10 870 | -41 501 | -36 360 | | expense | | | | | -------------------------------------------------------------------------------- | Depreciation, | -1 153 | -958 | -4 217 | -3 808 | | amortization & | | | | | | impairment losses | | | | | -------------------------------------------------------------------------------- | Other operating | -7 845 | -11 668 | -28 831 | -36 322 | | expenses | | | | | -------------------------------------------------------------------------------- | OPERATING PROFIT | -1 158 | 4 908 | -1 820 | 16 618 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income | 514 | 185 | 1 346 | 655 | -------------------------------------------------------------------------------- | Financial expenses | -739 | -1 328 | -2 180 | -3 778 | -------------------------------------------------------------------------------- | Share of profit/loss | -13 | -39 | -58 | 462 | | in associates | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE TAX | -1 396 | 3 726 | -2 713 | 13 957 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income tax expense | -3 866 | -898 | -3 779 | -3 935 | -------------------------------------------------------------------------------- | PROFIT FOR THE PERIOD | -5 262 | 2 828 | -6 492 | 10 022 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit for the period | -5 262 | 2 828 | -6 492 | 10 022 | | attributable to | | | | | | equity holders of the | | | | | | parent company | | | | | -------------------------------------------------------------------------------- | Earnings per share | | | | | | attributable to | | | | | | equity holders of the | | | | | | parent company | | | | | -------------------------------------------------------------------------------- | EPS basic (EUR) | -0,56 | 0,30 | -0,69 | 1,07 | -------------------------------------------------------------------------------- | EPS diluted (EUR) | -0,56 | 0,30 | -0,69 | 1,07 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT OF COMPREHENSIVE | 10-12/200 | 10-12/2008 | 1-12/2009 | 1-12/2008 | | INCOME | 9 | | | | -------------------------------------------------------------------------------- | 1 000 EUR | | | | | -------------------------------------------------------------------------------- | PROFIT FOR THE PERIOD | -5 262 | 2 828 | -6 492 | 10 022 | -------------------------------------------------------------------------------- | OTHER COMPREHENSIVE INCOME | | | | | -------------------------------------------------------------------------------- | Gains/losses recognized | | | | | | directly in equity | | | | | -------------------------------------------------------------------------------- | Cash flow hedges excluding | -166 | 10 | 248 | -208 | | taxes,( 10-12/2009 -58, | | | | | | 10-12/2008 4, 1-12/2009 87 | | | | | | and 1-12/2008 -73) | | | | | -------------------------------------------------------------------------------- | Currency translation | 914 | -658 | 1 569 | -1 269 | | differences | | | | | -------------------------------------------------------------------------------- | Total other comprehensive | 748 | -648 | 1 817 | -1 477 | | income | | | | | -------------------------------------------------------------------------------- | Total comprehensive income | -4 514 | 2 180 | -4 675 | 8 545 | | for the period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive income | -4 514 | 2 180 | -4 675 | 8 545 | | attributable to equity | | | | | | holders | | | | | | of the parent company | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | BALANCE SHEET, IFRS | | | -------------------------------------------------------------------------------- | 1000 EUR | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | -------------------------------------------------------------------------------- | Intangible asssets | 17 433 | 18 998 | -------------------------------------------------------------------------------- | Goodwill | 3 206 | 2 843 | -------------------------------------------------------------------------------- | Property, plant and equipment | 12 933 | 11 382 | -------------------------------------------------------------------------------- | Investments in associates | 0 | 1 723 | -------------------------------------------------------------------------------- | Available-for-sale investments | 23 | 23 | -------------------------------------------------------------------------------- | Other lonf term receivables | 33 | 0 | -------------------------------------------------------------------------------- | Deferred tax asset | 1 796 | 5 063 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT ASSETS | 35 424 | 40 031 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT ASSET | | | -------------------------------------------------------------------------------- | Inventories | 22 814 | 28 191 | -------------------------------------------------------------------------------- | Trade receivables and other receivables | 35 016 | 46 555 | -------------------------------------------------------------------------------- | Current tax assets | 641 | 1 701 | -------------------------------------------------------------------------------- | Cash and bank | 1 535 | 1 661 | -------------------------------------------------------------------------------- | TOTAL CURRENT ASSET | 60 006 | 78 108 | -------------------------------------------------------------------------------- | Non-current Assets Held for Sale | 1 528 | 0 | -------------------------------------------------------------------------------- | TOTAL ASSET | 96 958 | 118 139 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | -------------------------------------------------------------------------------- | Share capital | 5 629 | 5 629 | -------------------------------------------------------------------------------- | Share premium account | 5 777 | 5 777 | -------------------------------------------------------------------------------- | Other reserves | 39 | -208 | -------------------------------------------------------------------------------- | Translation differences | -381 | -205 | -------------------------------------------------------------------------------- | Retained earnings | 17 612 | 24 777 | -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY | 28 676 | 35 770 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | | | -------------------------------------------------------------------------------- | Deferred tax liability | 1 674 | 4 111 | -------------------------------------------------------------------------------- | Long term financial liabilities | 10 552 | 13 124 | -------------------------------------------------------------------------------- | Employee benefit obligations | 596 | 594 | -------------------------------------------------------------------------------- | Non-current provisions | 1 353 | 1 843 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT LIABILITIES | 14 175 | 19 672 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT LIABILITIES | | | -------------------------------------------------------------------------------- | Short term financial liabilities | 24 025 | 25 144 | -------------------------------------------------------------------------------- | Trade payables and other payables | 21 722 | 35 893 | -------------------------------------------------------------------------------- | Current tax liabilities | 2 082 | 550 | -------------------------------------------------------------------------------- | Current provisions | 6 278 | 1 110 | -------------------------------------------------------------------------------- | TOTAL CURRENT LIABILITIES | 54 107 | 62 697 | -------------------------------------------------------------------------------- | TOTAL EQUITY AND LIABILITIES | 96 958 | 118 139 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW STATEMENTS, IFRS | | | -------------------------------------------------------------------------------- | 1000 EUR | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net profit/loss | -6 492 | 10 022 | -------------------------------------------------------------------------------- | Adjustments to the net profit/loss of the | 8 889 | 10 400 | | period | | | -------------------------------------------------------------------------------- | Change in working capital | 10 039 | -2 999 | -------------------------------------------------------------------------------- | Interest paid | -1 293 | -1 848 | -------------------------------------------------------------------------------- | Interest income received | 302 | 78 | -------------------------------------------------------------------------------- | Other financing items | -273 | 253 | -------------------------------------------------------------------------------- | Income taxes paid | -1 118 | -5 058 | -------------------------------------------------------------------------------- | Net cash from operating activities | 10 054 | 10 848 | -------------------------------------------------------------------------------- | Net cash used in investment activities | -3 930 | -6 228 | -------------------------------------------------------------------------------- | Increase in loans | 22 877 | 27 356 | -------------------------------------------------------------------------------- | Decrease in loans | -26 446 | -26 129 | -------------------------------------------------------------------------------- | Repayment of finance lease liabilities | -73 | -88 | -------------------------------------------------------------------------------- | Dividends paid | -2 814 | -5 629 | -------------------------------------------------------------------------------- | Net cash used in financing activities | -6 457 | -4 490 | -------------------------------------------------------------------------------- | Change in cash and cash equivalents | -333 | 131 | -------------------------------------------------------------------------------- | Operating balance of cash and cash | 1 661 | 1 812 | | equivalents | | | -------------------------------------------------------------------------------- | Effect of the foreign exchange rates | 207 | -282 | -------------------------------------------------------------------------------- | Closing balance of cash and cash | 1 535 | 1 661 | | equivalents | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CHANGE IN | | | | | | | | SHAREHOLDERS' | | | | | | | | EQUITY | | | | | | | -------------------------------------------------------------------------------- | Equity belonging to parent company's shareholders | -------------------------------------------------------------------------------- | 1-12/2008 | | | | -------------------------------------------------------------------------------- | 1 000 EUR | Share | Share | Hedgi | Trans | Retain | Total | | | cap | issue | ng | lation | ed | | | | ital | premiu | re | diff. | ear | | | | | m | s. | | nings | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY | -------------------------------------------------------------------------------- | 1.JAN 2008 | -------------------------------------------------------------------------------- | | 5 629 | 5 777 | | -127 | 21 566 | 32 845 | -------------------------------------------------------------------------------- | Dividend | | | | | -5 629 | -5 629 | | distribution | | | | | | | -------------------------------------------------------------------------------- | Share-based | | | | | 9 | 9 | | payments | | | | | | | -------------------------------------------------------------------------------- | Total | | | -208 | -78 | 8 831 | 8 545 | | comprehensive | | | | | | | | income for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | SHAREHOLDERS' | 5 629 | 5 777 | -208 | -205 | 24 777 | 35 770 | | EQUITY 31 DEC | | | | | | | | 2008 | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Equity belonging to parent company's shareholders | -------------------------------------------------------------------------------- | 1-12/2009 | | | -------------------------------------------------------------------------------- | 1 000 EUR | Share | Share | Hedgi | Trans | Retain | Total | | | cap | issue | ng | lati | ed | | | | ital | premiu | re | on | ear | | | | | m | s. | diff. | ni | | | | | | | | ngs | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY | -------------------------------------------------------------------------------- | 1.JAN 2009 | -------------------------------------------------------------------------------- | | 5 629 | 5 777 | -208 | -205 | 24 777 | 35 770 | -------------------------------------------------------------------------------- | Dividend | | | | | -2 814 | -2 814 | | distribution | | | | | | | -------------------------------------------------------------------------------- | Share-based | | | | | 396 | 396 | | payments | | | | | | | -------------------------------------------------------------------------------- | Total | | | 248 | -177 | -4 746 | -4 675 | | comprehensive | | | | | | | | income for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY | -------------------------------------------------------------------------------- | 31 DEC 2009 | -------------------------------------------------------------------------------- | | 5 629 | 5 777 | 39 | -381 | 17 612 | 28 676 | -------------------------------------------------------------------------------- KEY RATIOS OF LAROX GROUP -------------------------------------------------------------------------------- | 1000 EUR | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | New orders | 109 072 | 184 799 | -------------------------------------------------------------------------------- | Group order backlog, end of the period | 33 418 | 72 006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 150 170 | 207 995 | -------------------------------------------------------------------------------- | Operating profit | -1 820 | 16 618 | -------------------------------------------------------------------------------- | % of net sales | -1.2 | 8.0 | -------------------------------------------------------------------------------- | Net financing costs | 893 | 2 661 | -------------------------------------------------------------------------------- | % of net sales | 0.6 | 1.3 | -------------------------------------------------------------------------------- | Result before taxes | -2 713 | 13 957 | -------------------------------------------------------------------------------- | Result for the period | -6 492 | 10 022 | -------------------------------------------------------------------------------- | EPS basic and diluted (EUR) | -0.69 | 1.07 | -------------------------------------------------------------------------------- | Investments | 4 307 | 7 402 | -------------------------------------------------------------------------------- | Shareholders' equity per share at the end of | 3.04 | 3.81 | | the period (EUR) | | | -------------------------------------------------------------------------------- | Equity ratio % | 30.4 | 32.3 | -------------------------------------------------------------------------------- | Contingent liabilities (EUR million) | 44.1 | 44.2 | -------------------------------------------------------------------------------- | Trading price at the end of period, (EUR) | 9.70 | 4.60 | -------------------------------------------------------------------------------- | Market capitalization at the end of period, | | -------------------------------------------------------------------------------- | EUR million *) | 91.4 | 43.2 | -------------------------------------------------------------------------------- | Personnel, average | 584 | 562 | -------------------------------------------------------------------------------- | Personnel at the end of the period | 562 | 593 | -------------------------------------------------------------------------------- | Net sales/employer | 257 | 370 | -------------------------------------------------------------------------------- *) The price of the A share is based on the B share's last trading rate of the reporting period. KEY FIGURES BY QUARTERS -------------------------------------------------------------------------------- | | 2009 | 2009 | 2009 | 2009 | 2008 | -------------------------------------------------------------------------------- | 1000 EUR | 10-12 | 7-9 | 4-6 | 1-3 | 10-12 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | New orders | 30 349 | 27 049 | 23 694 | 27 982 | 25 817 | -------------------------------------------------------------------------------- | Group order backlog | 33 418 | 36 582 | 40 535 | 57 029 | 72 006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 34 164 | 31 945 | 40 768 | 43 292 | 64 079 | -------------------------------------------------------------------------------- | Operating profit | -1 158 | -4 256 | 490 | 3 103 | 4 908 | -------------------------------------------------------------------------------- | % of net sales | -3.4 | -13.3 | 1.2 | 7.2 | 7.7 | -------------------------------------------------------------------------------- | Net financing costs | 238 | 120 | 174 | 360 | 1 182 | -------------------------------------------------------------------------------- | % of net sales | 0.7 | 0.4 | 0.4 | 0.8 | 1.8 | -------------------------------------------------------------------------------- | Result before taxes | -1 396 | -4 375 | 315 | 2 743 | 3 726 | -------------------------------------------------------------------------------- | Result for the | -5 262 | -3 285 | 135 | 1 919 | 2 828 | | quarter | | | | | | -------------------------------------------------------------------------------- | EPS basic and diluted | -0.35 | 0.01 | 0.20 | 0.30 | | -0.56 | | | | | -------------------------------------------------------------------------------- DIVIDEND PAID Based on the resolution of the annual general meeting of shareholders held on 26 March 2009 a dividend of EUR 0.30 per share was paid; a total of EUR 2.814.480. The dividends were paid on 20 May 2009. INVESTMENTS -------------------------------------------------------------------------------- | Property, plant and equipment | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Aquisition cost | 32 762 | 29 520 | -------------------------------------------------------------------------------- | Translation differences | | 165 | -349 | -------------------------------------------------------------------------------- | Additions | | 3 282 | 1 226 | -------------------------------------------------------------------------------- | Acquisition of subsidiary | | 0 | 2 938 | -------------------------------------------------------------------------------- | Disposals | | -224 | -33 | -------------------------------------------------------------------------------- | Acquisition cost | 35 986 | 32 762 | -------------------------------------------------------------------------------- | Cumulative depreciations | -21 380 | -20 263 | -------------------------------------------------------------------------------- | Translation differences | | -25 | 279 | -------------------------------------------------------------------------------- | Depreciation for the period | | -1 648 | -1 394 | -------------------------------------------------------------------------------- | Cumul depr, end of period | -23 053 | -21 380 | -------------------------------------------------------------------------------- | Carrying value, end of period | 12 933 | 11 382 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Intangible assets (excluding goodwill) | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Acquisition cost | 32 488 | 29 858 | -------------------------------------------------------------------------------- | Translation differences | | 15 | 18 | -------------------------------------------------------------------------------- | Additions | | 1 004 | 1 763 | -------------------------------------------------------------------------------- | Acquisition of subsidiary | | 0 | 850 | -------------------------------------------------------------------------------- | Disposals | | 0 | 0 | -------------------------------------------------------------------------------- | Acquisit. cost, end of period | 33 507 | 32 488 | -------------------------------------------------------------------------------- | Cumulative depreciations | -13 490 | -11 062 | -------------------------------------------------------------------------------- | Translation differences | | -15 | -14 | -------------------------------------------------------------------------------- | Depreciation for the period | | -2 569 | -2 414 | -------------------------------------------------------------------------------- | Cumul depr, end of period | -16 074 | -13 490 | -------------------------------------------------------------------------------- | Carrying value, end of period | 17 433 | 18 998 | -------------------------------------------------------------------------------- SEGMENT REPORTING Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker who is responsible for allocating resources and assessing performance of the segment. The chief operating decision maker of Larox Group has been identified as the CEO of Larox Group. Business operations of Larox Group are managed as one operational entity, solid liquid separation. The segment is based on customer life-cycle model. Segment information from the year 2008 has been adjusted according to IFRS 8, the new standard has not changed the amount of the Group's reported segments. Larox Group domicile is Finland. The external net sales from customers in Finland were EUR 10.9 million (EUR 12.1 million) and external net sales from customers in other countries were EUR 139.3 million (EUR 195,9 million). The total value of long term assets excluding financial instruments and deferred tax asset in Finland totaled EUR 30.2 million (EUR 30.0 million) and in other countries the same assets were EUR 5.0 million (EUR 5.0 million). -------------------------------------------------------------------------------- | Solid and liquid separation | | | -------------------------------------------------------------------------------- | 1 000 EUR | 1.1.-31.12.2009 | 1.1.-31.12.2008 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Net sales | 150 169 | 207 491 | -------------------------------------------------------------------------------- | Net sales of Aftermarket Sales | 79 187 | 95 947 | -------------------------------------------------------------------------------- | Share of Net Sales of Aftermarket Sales | 53 % | 46 % | | % from Total Net Sales | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | -1 976 | 16 623 | -------------------------------------------------------------------------------- | Operating profit % | -1.3 % | 8.0 % | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Profit before taxes | -2 809 | 14 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1 000 EUR | 1.10.-31.12.2009 | 1.10.-31.12.200 | | | | 8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 34 305 | 63 186 | -------------------------------------------------------------------------------- | Net sales of Aftermarket Sales | 23 068 | 22 737 | -------------------------------------------------------------------------------- | Share of Net Sales of Aftermarket Sales | 67 % | 36 % | | % from Total Net Sales | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | -709 | 4 952 | -------------------------------------------------------------------------------- | Operating profit % | -2.1 % | 7.8 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit before taxes | -856 | 3 908 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- RECONCILIATIONS BETWEEN SEGMENT INFORMATION AND IFRS FIGURES ARE PRESENTED BELOW. -------------------------------------------------------------------------------- | 1.1.-31.12.2009 | Segment | Non | IFRS | | | inform | allocated | | | | ation | amount | | | | | s *) | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Net sales | 150 169 | 1 | 150 170 | -------------------------------------------------------------------------------- | Operating profit | -1 976 | 155 | -1 820 | -------------------------------------------------------------------------------- | Profit before taxes | -2 809 | 95 | -2 713 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1.1.-31.12.2008 | Segment | Non | IFRS | | | inform | allocated | | | | ation | amount | | | | | s *) | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Net sales | 207 491 | 504 | 207 995 | -------------------------------------------------------------------------------- | Operating profit | 16 623 | -5 | 16 618 | -------------------------------------------------------------------------------- | Profit before taxes | 14 100 | -143 | 13 957 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1.10.-31.12.2009 | Segment | Non | IFRS | | | inform | allocated | | | | ation | amount | | | | | s *) | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Net sales | 34 305 | -142 | 34 164 | -------------------------------------------------------------------------------- | Operating profit | -709 | -449 | -1 158 | -------------------------------------------------------------------------------- | Profit before taxes | -856 | -540 | -1 396 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1.10.-31.12.2008 | Segment | Non | IFRS | | | inform | allocated | | | | ation | amount | | | | | s *) | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Net sales | 63 186 | 893 | 64 079 | -------------------------------------------------------------------------------- | Operating profit | 4 952 | -43 | 4 908 | -------------------------------------------------------------------------------- | Profit before taxes | 3 908 | -182 | 3 726 | -------------------------------------------------------------------------------- *) Unallocated amounts consist mainly of financial lease, hedging accounting and foreign exchange rate differences. Internal reporting is not calculated according to IAS 17, IAS 32 or IAS 39 standards in above reported amounts. -------------------------------------------------------------------------------- | Net sales 1000 EUR | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- | North, Central and South America | 46 703 | 68 846 | -------------------------------------------------------------------------------- | Asia and Australasia | 54 963 | 45 759 | -------------------------------------------------------------------------------- | Europe, Middle East and Africa | 48 505 | 93 390 | -------------------------------------------------------------------------------- | Total | 150 170 | 207 995 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets 1000 EUR | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- | North, Central and South America | 14 125 | 13 636 | -------------------------------------------------------------------------------- | Asia and Australasia | 4 278 | 9 434 | -------------------------------------------------------------------------------- | Europe, Middle East and Africa | 92 836 | 123 297 | -------------------------------------------------------------------------------- | Internal items | -14 281 | -28 228 | -------------------------------------------------------------------------------- | Total assets | 96 958 | 118 139 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments 1000 EUR | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- | North, Central and South America | 106 | 144 | -------------------------------------------------------------------------------- | Asia and Australasia | 355 | 80 | -------------------------------------------------------------------------------- | Europe, Middle East and Africa | 3 846 | 7 178 | -------------------------------------------------------------------------------- | Total investments | 4 307 | 7 402 | -------------------------------------------------------------------------------- Commitments and contingencies -------------------------------------------------------------------------------- | Loans secured by real estate and corporate mortgages | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1000 EUR | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | Loans from financial institutions | 34 431 | 38 049 | -------------------------------------------------------------------------------- | Total | 34 431 | 38 049 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Real estate mortgages | 6 560 | 6 560 | | | | | -------------------------------------------------------------------------------- | Corporate mortgages, general pledging | 3 936 | 3 936 | | | | | -------------------------------------------------------------------------------- | Corporate mortgages, specific pledging | 9 062 | 9 062 | -------------------------------------------------------------------------------- | Total | 19 558 | 19 558 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Guarantees for others | | | -------------------------------------------------------------------------------- | Pledged securities *) | 13 511 | 13 511 | -------------------------------------------------------------------------------- | Others | 155 | 161 | -------------------------------------------------------------------------------- | Total | 13 666 | 13 672 | -------------------------------------------------------------------------------- | *) Book value of secured shares | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other liabilities | | | -------------------------------------------------------------------------------- | Operating lease liabilities 1000 EUR | 984 | 1 094 | -------------------------------------------------------------------------------- | Lease liabilities 1000 EUR | 9 551 | 9 889 | -------------------------------------------------------------------------------- Fair and nominal values of derivative instruments -------------------------------------------------------------------------------- | 1000 EUR | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Currency derivatives: | 13 797 | 0 | -------------------------------------------------------------------------------- | Currency options | 3 481 | 7 033 | -------------------------------------------------------------------------------- | Forward contracts | | | -------------------------------------------------------------------------------- | Fair value | -42 | -402 | -------------------------------------------------------------------------------- | Nominal value | 17 278 | 7 033 | -------------------------------------------------------------------------------- Related party transactions -------------------------------------------------------------------------------- | 1000 EUR | | 1.1.-31.12.2009 | 1.1.-31.12.2008 | -------------------------------------------------------------------------------- | Transactions with associated | | | -------------------------------------------------------------------------------- | Companies | | | | -------------------------------------------------------------------------------- | Sales of goods and services | | 17 | 15 | -------------------------------------------------------------------------------- | Purchases of goods and services | | 2 577 | 2 736 | -------------------------------------------------------------------------------- | Other transactions with related | | | | -------------------------------------------------------------------------------- | Parties | | | | -------------------------------------------------------------------------------- | Purchases of services | | 40 | 20 | -------------------------------------------------------------------------------- | Balances with associated | | | | | companies | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Trade receivables | | 1 | 16 | -------------------------------------------------------------------------------- | Trade payables | | 365 | 236 | -------------------------------------------------------------------------------- CALCULATION OF KEY FIGURES Equity ratio, % = Shareholders' equity --------------------------------- x 100 Total assets - advances received Earnings per share = Net profit --------------------------------- Adjusted average number of shares during the period Market capitalization at the end of the period = Number of shares at the end of the period x trading price at the end of the period weighted by the number of shares traded Larox develops, designs and manufactures industrial filters and is a leading technology company in its field. Larox is a full service solution provider in filtration for separating solids from liquids. It supplies comprehensive aftermarket services throughout the lifespan of the Larox solution. Companies world-wide in mining and metallurgy, chemical processing and related industries benefit from the Larox technologies. Larox operates in over 40 countries and has over 600 employees. Larox has production facilities in Finland and in China, and the Group is headquartered in Lappeenranta, Finland. Net sales in 2009 totaled 150.2 million euros, of which more than 93 % were generated by exports and the company's foreign operations. Larox is a subsidiary of Outotec.
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