2010-02-18 07:15:00 CET
2010-02-18 07:15:03 CET
REGULATED INFORMATION
PKC Group Oyj - Financial Statement Release
THE PKC GROUP'S FINANCIAL STATEMENTS BULLETIN, 1 JANUARY - 31 DECEMBER 2009
PKC Group Oyj FINANCIAL STATEMENTS BULLETIN, 18 FEBRUARY 2010 8:15 a.m. THE PKC GROUP'S FINANCIAL STATEMENTS BULLETIN, 1 JANUARY - 31 DECEMBER 2009 Consolidated net sales fell by 35.3% on the previous year, totalling EUR 201.8 million (311.7 million). Operating profit was EUR 0.7 million (21.0 million), profit before taxes EUR 1.1 million (15.2 million) and profit for the financial year EUR 2.3 million (5.6 million). Earnings per share were EUR 0.13 (0.31). A dividend of EUR 0.40 per share will be proposed. HARRI SUUTARI, PRESIDENT AND CEO: ”Production of commercial vehicles in Europe fell to almost a third on the previous year. A successful acquisition of MAN Nutzfahrzeuge AG's wiring harness business in Poland meant that we were able to increase our market share and PKC's deliveries in Europe only decreased by a third. Deliveries in Brazil and North America almost halved. Demand for electronics design and manufacturing services and deliveries of these declined by around a fifth on the previous year. At the beginning of November, we revised the Group structure by organising the Wiring Harnesses business into a subgroup, with profit centres in Estonia, Poland, Brazil and the United States. These business centres will continue to be managed and supported by the Finnish parent company, PKC Wiring Systems. The recruitment of a Managing Director for our Wiring Harnesses business was completed in January 2010. As a result of cut-backs in the operations, streamlining of the cost structure and sales receivables financing, the need for working capital reduced, and cash flow was strong. The financial position improved during the past year. Early signs of economic growth are already visible, but it is uncertain how especially the European economies that are key to our operations will develop as government support reduces. Signs of a gradual recovery in the market are reflected in the fact that in the last quarter there was an increase in orders for new trucks received by our main customers in Europe and Latin America that exceeded the average production levels of 2009. We intend to take advantage of the low utilisation rate of our factories by investing in a rationalisation of operations and in efforts to boost productivity. In the current financial period, special attention will be paid to the further development of service for current customers and to the acquisition of new customers”. OPERATING ENVIRONMENT The Wiring Harness business The deliveries of heavy-duty trucks and new orders for them fell significantly in all our markets compared with the previous year. The number of registrations halved in our main market, Europe. Sales of agricultural tractors in Europe went down by about a quarter on the previous year. Deliveries to the machine construction industry in Europe remained at about two-fifths of what they had been a year before. Signs of a gradual recovery in the market are reflected in the fact that in the last quarter there was an increase in orders for new trucks received by our main customers in Europe that exceeded the average production levels of 2009. The number of deliveries and new orders in South America fell by approximately a third on the previous year. A sign of recovery in the South American markets is reflected in the fact that the number of orders for trucks received by our customers there exceeded the number of deliveries in the second half of the year. In North America deliveries of recreational commodities and the value of new orders received by our customers were down by around 50% on the previous year. The Electronics business Weakening of the global economics and market uncertainty manifested themselves in the Electronics business as a declining demand for services and increased unpredictability. Apart from in the Asian markets, industrial investments fell substantially, which in turn cut the number of the Group's deliveries of industrial electronics by about a fifth. NET SALES AND FINANCIAL PERFORMANCE October-December Consolidated net sales in October-December amounted to EUR 55.4 million (64.7 million), down 14.4% on the same period a year earlier. Consolidated operating profit totalled EUR 2.6 million (-3.9 million), accounting for 4.8% of net sales (-6.1%). The operating profit includes a non-recurring item of EUR 0.7 million as a result of the costs of rationalisation being lower than what had been estimated. Profitability was burdened by the low capacity utilisation rate resulting from the exceptionally long production outages of certain of our main customers during December. Depreciation amounted to EUR 2.6 million (depreciation and impairment of goodwill totalled EUR 3.3 million). Financial income and expenses were EUR -0.8 million (-3.5 million). Profit before taxes was EUR 1.8 million (-7.4 million). Profit for the report period totalled EUR 3.2 million (-9.5 million). Earnings per share were EUR 0.18 (-0.53). January-December Consolidated net sales in the financial year totalled EUR 201.8 million (311.7 million), down by 35.3% on the previous year. Consolidated operating profit totalled EUR 0.7 million (21.0 million), accounting for 0.3% of net sales (6.7%). Profitability was burdened by non-recurring expenses of around EUR 4.3 due to rationalisation. Depreciation amounted to EUR 11.0 million (9.4 million). Financial income and expenses were EUR 0.4 million (-5.8 million). Profit before taxes was EUR 1.1 million (15.2 million). Profit for the financial year totalled EUR 2.3 million (5.6 million). Earnings per share were EUR 0.13 (0.31). Net sales generated by the Wiring Harnesses business during the report year fell by 39.4% to EUR 149.4 million (246.5 million). The segment's share of consolidated net sales was 74.0% (79.1%). The Wiring Harnesses business reported an operating profit of EUR -3.9 million (9.7 million), or -2.6% of the segment's net sales (4.0%). The Electronics business segment's net sales fell by 19.5% to EUR 52.5 million (65.2 million), accounting for 26.0% of consolidated net sales (20.9%). It generated an operating profit of EUR 4.6 million (11.3 million), equivalent to 8.7% of the segment's net sales (17.3%). Deferred tax assets of EUR 1.7 million were recorded on losses in previous financial periods by companies in the Group. As the group's reorganisation costs recognised in 2009 were smaller than had been estimated, the full-year operating profit turned positive. BALANCE SHEET AND FINANCING Consolidated total assets at 31 December 2009 amounted to EUR 159.9 million (187.4 million). Interest-bearing liabilities totalled EUR 43.6 million at the close of the report period (72.0 million). The Group's equity ratio was 49.2% (41.9%). Net liabilities totalled EUR 28.2 million (59.5 million) and gearing was 35.9% (75.7%). Inventories amounted to EUR 36.1 million (51.8 million). Current receivables totalled EUR 43.5 million (62.0 million). Cash flows after investments during the report period were EUR 38.3 million (-6.2 million). Cash in hand and at bank amounted to EUR 15.3 million (12.5 million). In order to ensure financing flexibility, PKC has available credit facilities. CAPITAL EXPENDITURE During the report period, the Group's gross capital expenditure totalled EUR 3.9 million (27.4 million), representing 1.9% of net sales (8.8%). Capital expenditure involved the acquisition of production machinery and equipment as well as information systems. RESEARCH AND DEVELOPMENT Research and development costs totalled EUR 5.5 million (5.8 million), representing 2.7% (1.9%) of consolidated net sales. At the end of the financial year, 114 (101) staff were employed in product development. PERSONNEL During the period under review, the Group had an average payroll of 4,478 employees (5,588). At the end of the financial year, the Group employed 4,077 staff (5,652), of whom 3,617 (4,951) worked abroad and 460 (701) worked in Finland. Staff cuts were made in various units within the Group. A total of EUR 2.9 million was recorded in non-recurring costs in respect of layoffs in the period under review. As a result of the co-determination negotiations concluded in January 2009, almost the entire staff of PKC Group Oyj in Kempele, i.e. 250 employees, were temporarily laid off for periods of a week or longer, and 60 staff were laid off at PKC Electronics Oy's Raahe factory for a maximum period of three months. As a result of the co-determination negotiations concluded in May 2009, it was decided permanently to lay off 128 staff in stages from PKC Group Oyj, Kempele. As a result of the co-determination negotiations concluded in June 2009, it was decided temporarily to lay off approximately 45 staff from PKC Group Oyj's Kempele unit. The layoffs were a continuation of those agreed at the negotiations concluded in January and were set to last from one to six weeks. As a result of the co-determination negotiations concluded in August, PKC Electronics temporarily laid off 60 staff. The layoffs were implemented in stages by the end of December. QUALITY AND THE ENVIRONMENT The Group's Wiring Harnesses business, with the exception of the Polish unit, is certified in accordance with the ISO/TS 16949 and ISO 9001 quality standards as well as the ISO 14001 environmental management standard. The Curitiba production unit also has OHSAS 18001 occupational health and safety management system certification. In December 2009 ISO9001 and ISO14001 certification audits were carried out at the wiring harness factory in Poland. The building of the ISO/TS 16949 quality management system in Poland is progressing as planned and the certification process will be completed during the first half of 2010. The Group's Electronics business is certified in accordance with the ISO 9001 and ISO 14001 standards. An ISO/TS 16949 certification audit was carried out at the factory in Raahe during the last quarter. Preparations for ISO/TS 16949 quality management system certification have continued as planned at the units in China and Kostomuksha. Best quality practices are part of PKC's strategy. The selected practices are tried and tested quality tools and procedures that aid the development and standardisation of production processes, methods and products, ensuring that they are as uniform as possible, regardless of production site. Best quality practices also include Six Sigma, which is used in the Wiring Harness business in the implementation of strategically important development projects. Best quality practices are a way to encourage every employee to be closely involved in quality work and to improve quality continuously. During the period under review, the Electronics business embarked upon a best quality practices project as part of its own operation. Progress will be closely monitored at the Executive Board and as part of external system audits. MANAGEMENT AND THE GROUP STRUCTURE The Annual General Meeting on 27 March 2009 resolved to pay a dividend of EUR 0.15 per share, i.e. a total of around EUR 2.7 million. The dividend was paid out on 8 April 2009. The Annual General Meeting re-elected Endel Palla, Olli Pohjanvirta, Matti Ruotsala and Jyrki Tähtinen to the Board of Directors. Outi Lampela was elected as a new member to the Board. At its organisation meeting, the Board of Directors elected Matti Ruotsala Chairman and Jyrki Tähtinen Vice Chairman. On 30 April 2009 PKC Group Oyj's Board of Directors resolved to appoint an Audit Committee from among its members. Outi Lampela was elected Chairman of the Audit Committee and Olli Pohjanvirta was elected as a member. PKC Group Oyj's Executive Board member's, Pekka Korkala's, Vice President responsible for the production and marketing of Wiring Harnesses, employment relationship ended on 8 September 2009. Since then, the members of the Executive Board have been Harri Suutari, President and CEO (Chairman), Jarmo Rajala, Vice President (Electronics), Jyri Kontio, Vice President (Wiring harnesses: Sourcing, Quality and Technology), Sanna Raatikainen, General Counsel, Marja Sarajärvi, CFO, and Jarkko Kariniemi, Director of HR & Risk Management. Harri Ojala, Master of Science (Technology), MBA, aged 50, has been appointed Managing Director of PKC Wiring Systems Oy. In deviation to the previously published information, he will start on 15 March 2010. When Ojala takes up his position on the Executive Board, he will be responsible for the Group's Wiring Harnesses business, at which point Jyri Kontio, Vice President, Wiring Harnesses, will cease to be a member of the Executive Board, while his employment relationship continues. On 1 November 2009 PKC reorganise its wiring harness business into a separate subgroup. The aim is to streamline the operations and to improve its opportunities for continued development. AUDITORS The authorised public accounting firm Ernst & Young Oy carried out PKC Group Oyj's audit, with Juhani Rönkkö, Authorised Public Accountant, acting as the principal auditor. SHARES AND SHAREHOLDERS PKC Group Oyj's share turnover on NASDAQ OMX Helsinki Ltd. from 1 January to 31 December 2009 was 8,655,356 shares (12,940,819 shares), representing 48.7% of the average number of shares (72.8%). Shares were traded to a total value of EUR 37.8 million (85.9 million). The low during the period in review was EUR 2.70 (2.82) and the high was EUR 6.83 (9.48). The closing price on the last trading day in the period under review was EUR 6.60 (3.25) and the average price during the period was EUR 4.38 (6.56). The company's market capitalisation at 31 December 2009 was EUR 117.4 million (57.8 million). Shares held by Board members, their closely associated persons and corporations in which they have a controlling interest, accounted for 2.3% (3.2%) of the total number of shares at the close of the period under review. PKC Group Oyj had 7,336 (7,648) shareholders at the end of the report period. The proportion of shares held by foreigners and by way of nominee registrations at 31 December 2009 was 15.5% of the shares outstanding (25.8%). THE BOARD'S AUTHORISATIONS The Board of Directors was granted authorisation by the Annual General Meeting on 29 March 2007 to decide on one or more share issues and the granting of special rights as defined in Chapter 10, Section 1 of the Companies Act and on all the terms and conditions thereof. A maximum total of 3,500,000 shares may be issued or subscribed for on the basis of the authorisation. This authorisation includes the right to decide on a directed share issue. The authorisation will remain in force for five years from the date of the resolution of the Annual General Meeting. The authorisation may be used at the Board's discretion for financing corporate acquisitions, for carrying out inter-company co-operation or similar arrangements, or for strengthening the company's financing and capital structure. The Board of Directors does not have a valid authorisation to acquire the company's own shares, and the company does not hold any own shares (treasury shares). STOCK OPTION SCHEMES In 2006, PKC launched a stock option scheme according to which the maximum total number of stock options to be issued is 697,500. They are divided into A, B and C warrants. At the close of the financial year, the group's key personnel held a total of 202,500 2006A warrants, 193,520 2006B warrants and 219,840 2006C warrants. The subscription period for shares through the exercise of the 2006 stock options is 2009-2013. The share subscription price for stock options is the volume-weighted average price of the PKC Group Oyj share on NASDAQ OMX Helsinki, with dividend adjustments, as defined in the stock option terms (at present, EUR 10.49 for the 2006A, 2006B and 2006C warrants). Through the exercise of the 2006 stock options, the share capital of PKC Group Oyj may be increased by a maximum total of 697,500 new shares and EUR 234,673.67. The 2006 stock options are subject to a share ownership plan. Key personnel are obliged to subscribe for or purchase the company's shares with 20% of the gross income earned from stock options and to own these shares for two years. The company's President and CEO is obliged to own these shares for the duration of his managerial contract. The Annual General Meeting on 27 March 2009 decided to issue stock options to key personnel in the company and its subsidiaries. The maximum total number of stock options issued will be 600,000 and they are divided into A, B and C options. At the close of the financial year, the group's key personnel held a total of 151,500 2009A warrants. The subscription price for shares through the exercise of the 2009 stock options will be the volume-weighted average price of the PKC Group Oyj share on NASDAQ OMX Helsinki for April 2009, 2010 and 2011 + 20% (at present, EUR 3.85 for the 2009A warrants). The amount of the dividend decided after the period for the determination of the share subscription price, but before shares are subscribed for, shall be deducted from the share subscription price of the stock options on each dividend record date. The subscription price for shares will be recorded in the invested non-restricted equity fund. The stock options entitle their owners to subscribe to a maximum total of 600,000 new shares in the company or existing shares held by the company. The share subscription period for 2009A warrants will be 1 April 2012 — 30 April 2014, for 2009B warrants 1 April 2013 — 30 April 2015 and for 2009C warrants 1 April 2014 — 30 April 2016. SHORT-TERM RISKS AND UNCERTAINTIES The development of investments in the near future in Europe has especially significant effect on PKC's result. The start of growth requires positive and stable increase of Pan European national income. Other main uncertainties include price pressures on our final products, the significant fluctuation of currency exchange rates and the availability of components. The principles, objectives and organisation of the company's risk management as well as key risk areas are described in the risk management section of the Corporate Governance guidelines, which are available on the company's website at www.pkcgroup.com. OUTLOOK FOR THE FUTURE There is cautious optimism in the European truck market. Signs of a gradual recovery in the market are reflected in the fact that in the last quarter there was an increase in orders for new trucks received by our main customers in Europe and Latin America that exceeded the average production levels of 2009. The production volumes of commercial vehicles are clearly increasing in Brazil. We also estimate that demand for electronics design and manufacturing services in the market will strengthen compared with last year. PKC's Electronics business will probably see its most substantial growth this year in China. We predict that the full-year net sales will increase moderately and that the operating result will improve substantially on the previous year. PKC's balance sheet, liquidity and good customer relationships will enable improvement in PKC's relative competitive position. THE BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF PROFITS The parent company's distributable funds are EUR 50.9 million, of which the net profit for the financial year is EUR 5.4 million. The Board of Directors will propose to the Annual General Meeting to be held on 31 March 2010 that a dividend of EUR 0.40 per share be paid for a total of EUR 7.1 million and that the remainder of the distributable funds be transferred to shareholders' equity. The record date for the dividend payout is 7 April 2010 and the payment date is 14 April 2010. In the view of the Board of Directors, the proposed dividend payout will not put the company's liquidity at risk. ANNUAL REPORT 2009 AND CORPORATE GOVERNANCE STATEMENT PKC will publish its Annual Report for 2009, which contains the report by the Board of Directors and financial statements, auditor's report and a separate corporate governance statement on 10 March 2010 on its website at www.pkcgroup.com. ANNUAL GENERAL MEETING AND FINANCIAL REPORTS IN 2010 The Annual General Meeting of PKC Group Oyj will be held on Wednesday 31 March 2010 at 4:00 p.m., at the parent company's offices at Vihikari 10, Kempele. In 2010, the Interim Reports will be published as follows: Interim Report 1-3/2010 on Thursday 6 may 2010 at 8:15 a.m. Interim Report 1-6/2010 on Thursday 5 August 2010 at 8:15 a.m. Interim Report 1-9/2010 on Thursday 4 November 2010 at 8:15 a.m. The text section of this financial statement bulletin focuses on the annual accounts. Comparisons in accordance with IFRS standards have been made to the figures in 2008 unless otherwise mentioned. The figures presented in the tables are independently rounded figures. TABLES -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF | 10-12/09 | 10-12/08 | 1-12/09 | 1-12/08 | | COMPREHENSIVE INCOME (EUR 1,000) | 3 mon. | 3 mon. | 12 mon. | 12 mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES | 55,390 | 64,680 | 201,814 | 311,713 | -------------------------------------------------------------------------------- | Other operating income | 753 | 416 | 2,253 | 1,304 | -------------------------------------------------------------------------------- | Increase (+) / decrease (-) in | -1,298 | 1,853 | -9,319 | 71 | | stocks of finished goods and | | | | | | work in progress | | | | | -------------------------------------------------------------------------------- | Materials and services | 29,343 | 38,303 | 106,346 | 172,198 | -------------------------------------------------------------------------------- | Employee benefits expenses | 13,529 | 18,384 | 53,384 | 76,049 | -------------------------------------------------------------------------------- | Depreciation | 2,606 | 2,083 | 10,982 | 8,177 | -------------------------------------------------------------------------------- | Impairment loss for goodwill | 0 | 1,197 | 0 | 1,197 | -------------------------------------------------------------------------------- | Other operating expenses | 6,735 | 10,910 | 23,355 | 34,427 | -------------------------------------------------------------------------------- | OPERATING PROFIT/LOSS | 2,632 | -3,928 | 682 | 21,039 | -------------------------------------------------------------------------------- | Financial income | 328 | 7,341 | 8,078 | 9,655 | -------------------------------------------------------------------------------- | Financial expenses | -1,136 | -10,845 | -7,657 | -15,466 | -------------------------------------------------------------------------------- | PROFIT/LOSS BEFORE TAXES | 1,824 | -7,432 | 1,103 | 15,228 | -------------------------------------------------------------------------------- | Income tax | 1,421 | -2,032 | 1,246 | -9,661 | -------------------------------------------------------------------------------- | PROFIT/LOSS FOR THE REPORT | 3,245 | -9,464 | 2,349 | 5,567 | | PERIOD | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other comprehensive income: | | | | | -------------------------------------------------------------------------------- | Exchange differences on | 1,062 | -1,510 | 443 | -1,500 | | translating foreign operations | | | | | -------------------------------------------------------------------------------- | Total comprehensive income for | 4,307 | -10,974 | 2,792 | 4,067 | | the period: | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/loss attributable to: | | | | | -------------------------------------------------------------------------------- | Shareholders of the parent | 3,245 | -9,474 | 2,349 | 5,519 | | company | | | | | -------------------------------------------------------------------------------- | Minority interest | 0 | -10 | 0 | -47 | -------------------------------------------------------------------------------- | Total | 3,245 | -9,465 | 2,349 | 5,566 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | From profit/loss attributable to | | | | | | shareholders of the parent | | | | | | company | | | | | -------------------------------------------------------------------------------- | Basic earnings per share (EPS), | 0.18 | -0.53 | 0.13 | 0.31 | | EUR | | | | | -------------------------------------------------------------------------------- Diluted earnings per share would exceed the basic earnings per share, so it is not presented. -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF FINANCIAL | 12/09 | 12/08 | | POSITION (EUR 1,000) | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | -------------------------------------------------------------------------------- | Goodwill | 13,794 | 9,481 | -------------------------------------------------------------------------------- | Other intangible assets | 11,955 | 14,694 | -------------------------------------------------------------------------------- | Tangible assets | 34,378 | 34,929 | -------------------------------------------------------------------------------- | Deferred tax assets | 4,804 | 1,623 | -------------------------------------------------------------------------------- | Other receivables | 64 | 453 | -------------------------------------------------------------------------------- | Non-current assets total | 64,995 | 61,179 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT ASSSETS | | | -------------------------------------------------------------------------------- | Inventory | 36,066 | 51,815 | -------------------------------------------------------------------------------- | Receivables | | | -------------------------------------------------------------------------------- | Trade receivables | 35,170 | 47,025 | -------------------------------------------------------------------------------- | Other receivables | 8 291 | 14,948 | -------------------------------------------------------------------------------- | Receivables total | 43,460 | 61,973 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 15,326 | 12,468 | -------------------------------------------------------------------------------- | Current assets total | 94,852 | 126,256 | -------------------------------------------------------------------------------- | ASSETS TOTAL | 159,847 | 187,435 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | -------------------------------------------------------------------------------- | EQUITY | | | -------------------------------------------------------------------------------- | Share capital | 5,983 | 5,983 | -------------------------------------------------------------------------------- | Share premium account | 4,862 | 4,862 | -------------------------------------------------------------------------------- | Reserve fund | 370 | 370 | -------------------------------------------------------------------------------- | Translation difference | -1,253 | -1,841 | -------------------------------------------------------------------------------- | Share-based payments | 1,052 | 808 | -------------------------------------------------------------------------------- | Retained earnings | 65,263 | 62,557 | -------------------------------------------------------------------------------- | Profit/loss for the report period | 2,349 | 5,519 | -------------------------------------------------------------------------------- | Minority interest | 0 | 328 | -------------------------------------------------------------------------------- | EQUITY TOTAL | 78,626 | 78,584 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES | | | -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 34,630 | 40,120 | -------------------------------------------------------------------------------- | Non-interest-bearing liabilities | | | -------------------------------------------------------------------------------- | Provisions | 376 | 216 | -------------------------------------------------------------------------------- | Deferred tax liabilities | 3,103 | 3,461 | -------------------------------------------------------------------------------- | Non-current liabilities total | 38,110 | 43,797 | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 8,940 | 31,866 | -------------------------------------------------------------------------------- | Trade payables | 16,059 | 14,907 | -------------------------------------------------------------------------------- | Other liabilities | 18,112 | 18,281 | -------------------------------------------------------------------------------- | Current liabilities total | 43,111 | 65,055 | -------------------------------------------------------------------------------- | Liabilities total | 81,221 | 108,851 | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES TOTAL | 159,847 | 187,390 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CASH FLOWS | 1-12/09 12 | 1-12/08 12 | | (EUR 1,000) | mon. | mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from operating activities | | | -------------------------------------------------------------------------------- | Cash receipts from customers | 213,077 | 326,650 | -------------------------------------------------------------------------------- | Cash receipts from other operating | 2,693 | 1,304 | | activities | | | -------------------------------------------------------------------------------- | Cash paid to suppliers and employees | -166, 597 | -289,969 | -------------------------------------------------------------------------------- | Cash flows from operations before financial | 49,173 | 37,985 | | income and expenses and taxes | | | -------------------------------------------------------------------------------- | Interest paid | -3,880 | -5,644 | -------------------------------------------------------------------------------- | Interest received and other financial | 0 | 233 | | income | | | -------------------------------------------------------------------------------- | Income taxes paid | -2,817 | -7,275 | -------------------------------------------------------------------------------- | Net cash from operating activities (A) | 42,476 | 25,299 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from investing activities | | | -------------------------------------------------------------------------------- | Purchase of tangible and intangible assets | -3,989 | -9,906 | -------------------------------------------------------------------------------- | Proceeds from sale of tangible and | 253 | 4 | | intangible assets | | | -------------------------------------------------------------------------------- | Investments | -453 | -21,589 | -------------------------------------------------------------------------------- | Loans granted | -2 | -9 | -------------------------------------------------------------------------------- | Amortisations of loan received | 38 | 44 | -------------------------------------------------------------------------------- | Dividends received | 0 | 1 | -------------------------------------------------------------------------------- | Net cash flows from investing activities | -4,153 | -31,455 | | (B) | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows after investments | 38,323 | -6,156 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from financing activities | | | -------------------------------------------------------------------------------- | Drawing of credits | 0 | 37,313 | -------------------------------------------------------------------------------- | Amortisations of credits | -32,723 | -21,011 | -------------------------------------------------------------------------------- | Dividends paid | -2,709 | -8,104 | -------------------------------------------------------------------------------- | Net cash used in financing activities (C) | -35,432 | 8,199 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net increase (+) or decrease (-) in cash | 2,891 | 2,043 | | and equivalents | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KEY FINANCIAL INDICATORS | 1-12/09 12 | 1-12/08 12 | | | mon. | mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales, EUR 1,000 | 201,814 | 311,713 | -------------------------------------------------------------------------------- | Operating profit/loss, EUR 1,000 | 682 | 21,039 | -------------------------------------------------------------------------------- | % of net sales | 0.3 | 6.7 | -------------------------------------------------------------------------------- | Profit/loss before taxes, EUR 1,000 | 1,103 | 15,228 | -------------------------------------------------------------------------------- | % of net sales | 0.5 | 4.9 | -------------------------------------------------------------------------------- | Net profit/loss for the period, EUR 1,000 | 2,349 | 5,519 | -------------------------------------------------------------------------------- | % of net sales | 1.2 | 1.8 | -------------------------------------------------------------------------------- | Return on equity (ROE), % | 3.0 | 6.9 | -------------------------------------------------------------------------------- | Return on investments (ROI), % | 6.4 | 20.8 | -------------------------------------------------------------------------------- | Net liabilities, EUR 1,000 | 28,245 | 59,518 | -------------------------------------------------------------------------------- | Gearing, % | 35.9 | 75.8 | -------------------------------------------------------------------------------- | Equity ratio, % | 49.2 | 41.9 | -------------------------------------------------------------------------------- | Current ratio, % | 2.2 | 1.9 | -------------------------------------------------------------------------------- | Gross capital expenditure, EUR 1,000 | 3,894 | 27,426 | -------------------------------------------------------------------------------- | % of net sales | 1.9 | 8.8 | -------------------------------------------------------------------------------- | R&D expenditures, EUR 1,000 | 5,518 | 5,812 | -------------------------------------------------------------------------------- | % of net sales | 2.7 | 1.9 | -------------------------------------------------------------------------------- | Personnel average | 4,478 | 5,588 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PER-SHARE KEY FIGURES | 1-12/09 12 | 1-12/08 12 | | | mon. | mon. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share (EPS), EUR | 0.13 | 0.31 | -------------------------------------------------------------------------------- | Equity per share, EUR | 4.42 | 4.41 | -------------------------------------------------------------------------------- | Share price at close of period, EUR | 6.60 | 3.25 | -------------------------------------------------------------------------------- | Lowest share price, EUR | 2.70 | 2.82 | -------------------------------------------------------------------------------- | Highest share price, EUR | 6.83 | 9.48 | -------------------------------------------------------------------------------- | Average share price, EUR | 4.38 | 6.56 | -------------------------------------------------------------------------------- | Turnover in shares, 1,000 shares | 8,655 | 12,941 | -------------------------------------------------------------------------------- | Turnover in shares per (share issue | 48.7 | 72.8 | | adjusted) share capital, % | | | -------------------------------------------------------------------------------- | Average number of shares, 1,000 shares | 17,782 | 17,782 | -------------------------------------------------------------------------------- | Average number of shares, diluted, 1,000 | 1 6,690 | 17,782 | | shares | | | -------------------------------------------------------------------------------- | Shares at end of period, 1,000 shares | 17,782 | 17,782 | -------------------------------------------------------------------------------- | Market capitalisation, EUR 1,000 | 117,358 | 57,790 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1. SEGMENT INFORMATION | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1.1.-31.12.2009 (EUR 1,000) | Wiring | Electronic | Eliminations | Group | | | Harness | s | | Total | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales to external customers | 149,316 | 52,497 | | 201,814 | -------------------------------------------------------------------------------- | Sales to other segment's | 227 | 107 | -334 | 0 | -------------------------------------------------------------------------------- | Net sales to other | 149,544 | 52,604 | -334 | 201,814 | | segments, EUR 1,000 | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit/loss | -3,894 | 4,575 | 0 | 682 | -------------------------------------------------------------------------------- | % of net sales | -2.6 | 8.7 | | 0.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Segment's assets | 100,191 | 43,706 | 11,146 | 155,043 | -------------------------------------------------------------------------------- | Unallocated assets *) | | | | 4,804 | -------------------------------------------------------------------------------- | Assets total | 100,191 | 43,706 | 11,146 | 159,847 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | * Segment's assets do not include deferred taxes | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1.1.-31.12.2008 (EUR 1,000) | Wiring | Electronic | Eliminations | Group | | | Harness | s | | Total | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales to external customers | 246,487 | 65,226 | | 311,713 | -------------------------------------------------------------------------------- | Sales to other segment's | 193 | 671 | -864 | 0 | -------------------------------------------------------------------------------- | Net sales to other | 246,680 | 65,897 | -864 | 311,713 | | segments, EUR 1,000 | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit/loss | 9,744 | 11,295 | 0 | 21,039 | -------------------------------------------------------------------------------- | % of net sales | 4.0 | 17.3 | | 6.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Segment's assets | 152,765 | 38,044 | -4,994 | 185,814 | -------------------------------------------------------------------------------- | Unallocated assets *) | | | | 1,623 | -------------------------------------------------------------------------------- | Assets total | 152,765 | 38,044 | -4,994 | 187,437 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | * Segment's assets do not include deferred taxes | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY GEOGRAPHICAL | 10-12/0 | 10-12/08 | 1-12/09 | 1-12/08 | | SEGMENTS (EUR 1,000) | 9 3 | 3 mon. | 12 mon. | 12 mon. | | | mon. | | | | -------------------------------------------------------------------------------- | Finland | 10,508 | 13,103 | 40,494 | 58,621 | -------------------------------------------------------------------------------- | Other Europe | 25,538 | 29,717 | 99,928 | 151,701 | -------------------------------------------------------------------------------- | North America | 4,443 | 7,135 | 18,870 | 33,427 | -------------------------------------------------------------------------------- | South America | 10,478 | 10,501 | 26,526 | 48,510 | -------------------------------------------------------------------------------- | Other Countries | 4,423 | 4,224 | 15,995 | 19,453 | -------------------------------------------------------------------------------- | Total | 55,390 | 64,680 | 201,814 | 311,713 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 2. RECONCILIATION OF EQUITY | | | | | | | | (EUR million | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | A = Share Capital | | | | | | | -------------------------------------------------------------------------------- | B = Share premium account | | | | | | | -------------------------------------------------------------------------------- | C = Fair value and other | | | | | | | | reserves | | | | | | | -------------------------------------------------------------------------------- | D = Retained earnings | | | | | | | -------------------------------------------------------------------------------- | E = Minority interest | | | | | | | -------------------------------------------------------------------------------- | F = Total equity | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | A | B | C | D | E | F | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.2 | 71.1 | 0.8 | 83.0 | | 1.1.2008 | | | | | | | -------------------------------------------------------------------------------- | Profit/loss for the period | 0.0 | 0.0 | 0.0 | 5.5 | 0.0 | 5.5 | -------------------------------------------------------------------------------- | Dividends | 0.0 | 0.0 | 0.0 | -8.0 | -0.1 | -8.1 | -------------------------------------------------------------------------------- | Share options used | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Translation differences | 0.0 | 0.0 | 0.0 | -1.5 | 0.0 | -1.5 | -------------------------------------------------------------------------------- | Other changes | 0.0 | 0.0 | 0.1 | 0.0 | -0.5 | -0.3 | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.4 | 67.1 | 0.3 | 78.6 | | 31.12.2008 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.4 | 67.1 | 0.3 | 78.6 | | 1.1.2009 | | | | | | | -------------------------------------------------------------------------------- | Profit/loss for the period | 0.0 | 0.0 | 0.0 | 2.3 | 0.0 | 2.3 | -------------------------------------------------------------------------------- | Dividends | 0.0 | 0.0 | 0.0 | -2.7 | 0.0 | -2.7 | -------------------------------------------------------------------------------- | Share-based payments | 0.0 | 0.0 | 0.0 | 0.3 | 0.0 | 0.3 | -------------------------------------------------------------------------------- | Translation differences | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | 0.1 | -------------------------------------------------------------------------------- | Acquisitions of minority | 0.0 | 0.0 | 0.0 | 0.3 | -0.3 | 0.0 | | interest | | | | | | | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.4 | 67.4 | 0.0 | 78.6 | | 31.12.2009 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3. CONTINGENT LIABILITIES AT END OF | 12/09 | 12/08 | | | | PERIOD (EUR 1,000) | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Leasing liabilities | 3,027 | 11,745 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities for derivate | | | | | | instruments | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Nominal values | | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | | -------------------------------------------------------------------------------- | Forward contracts | 0 | 3,307 | | | -------------------------------------------------------------------------------- | Option agreements | | | | | -------------------------------------------------------------------------------- | Call | 1,187 | 757 | | | -------------------------------------------------------------------------------- | Total | 1,187 | 4,064 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fair values | | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | | -------------------------------------------------------------------------------- | Forward contracts | 0 | -195 | | | -------------------------------------------------------------------------------- | Option agreements | | | | | -------------------------------------------------------------------------------- | Call | 83 | 0 | | | -------------------------------------------------------------------------------- | Total | 83 | -195 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Currency derivates are used only in hedging currency risks. PKC Group does | | not apply hedge accounting to derivate instruments in accordance with IAS | | 39. Fair values of the derivates are entered directly in the income | | statement. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 4. QUARTERLY KEY | 7-9/08 | 10-12/0 | 1-3/09 | 4-6/09 | 7-9/09 | 10-12/09 | | FIGURES, | 3 mon. | 8 3 | 3 mon. | 3 mon. | 3 mon. | 3 mon. | | CONSOLIDATED | | mon. | | | | | -------------------------------------------------------------------------------- | Net sales, EUR | 73.4 | 64.7 | 53.8 | 45.8 | 46.8 | 55.4 | | million | | | | | | | -------------------------------------------------------------------------------- | Operating | 6.0 | -3.9 | 0.1 | -5.6 | 3.6 | 2.6 | | profit/loss, EUR | | | | | | | | million | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 8.2 | -6.1 | 0.2 | -12.2 | 7.6 | 4.8 | -------------------------------------------------------------------------------- | Profit/loss | 5.5 | -7.4 | -1.9 | -4.5 | 5.7 | 1.8 | | before taxes, EUR | | | | | | | | million | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 7.6 | -11.5 | -3.5 | -9.9 | 12.2 | 3.3 | -------------------------------------------------------------------------------- | Equity ratio, % | 50.0 | 41.9 | 42.9 | 42.5 | 46.7 | 49.2 | -------------------------------------------------------------------------------- | Earnings per | 0.2 | -0.5 | -0.2 | -0.3 | 0.4 | 0.2 | | share (EPS), | | | | | | | | diluted (EUR) | | | | | | | -------------------------------------------------------------------------------- | Shareholders | 5.1 | 4.4 | 4.1 | 3.8 | 4.2 | 4.4 | | equity per share, | | | | | | | | EUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY | | | | | | | | FIGURES, WIRING | | | | | | | | HARNESSESS | | | | | | | -------------------------------------------------------------------------------- | Net sales, EUR | 57.0 | 50.8 | 41.7 | 33.1 | 34.2 | 40.3 | | million | | | | | | | -------------------------------------------------------------------------------- | Operating | 3.9 | -6.2 | -0.6 | -6.3 | 2.0 | 1.0 | | profit/loss, EUR | | | | | | | | million | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 6.8 | -12.2 | -1.4 | -19.0 | 5.9 | 2.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY | | | | | | | | FIGURES, | | | | | | | | ELECTRONICS | | | | | | | -------------------------------------------------------------------------------- | Net sales, EUR | 16.4 | 13.9 | 12.1 | 12.7 | 12.7 | 15.1 | | million | | | | | | | -------------------------------------------------------------------------------- | Operating | 2.1 | 2.3 | 0.7 | 0.7 | 1.6 | 1.7 | | profit/loss, EUR | | | | | | | | million | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 13.1 | 16.4 | 5.7 | 5.4 | 12.2 | 11.0 | -------------------------------------------------------------------------------- CALCULATION OF INDICATORS Return on equity (ROE), % = 100 x Profit/loss / Shareholders' equity (average) Return on investments (ROI), % = 100 x (Profit/loss + taxes + financial expenses) / Shareholders' equity + interest-bearing liabilities (average) Gearing, % = 100 x (Interest-bearing liabilities - cash in hand and at bank and investments) / Shareholders' equity + minority interest Equity ratio, % = 100 x (Shareholders' equity + minority interest) / Balance sheet total - advance payments received Quick ratio = Receivables and cash in hand and at bank / Current liabilities - advance payments received Current ratio Receivables and cash in hand and at bank + inventories / Current liabilities Earnings per share (EPS), EUR Profit/loss +/- minority interest / Average share issue-adjusted number of shares Shareholders' equity per share, EUR Shareholders' equity / Share issue-adjusted number of shares on the balance sheet date Market capitalisation Number of shares at the end of the financial period x the last trading price of the financial period The figures have been audited. The financial statements have been prepared in accordance with IFRS standards. All the future estimates and forecasts presented in this stock exchange release are based on the best current knowledge of the company's management. The estimates and forecasts contain certain elements of risk and uncertainty which, if they materialise, may lead to results that differ from present estimates. The main factors of uncertainty are related, among other things, to the general economic situation, the trend in the operating environment and the sector as well as the success of the Group's strategy. PKC GROUP OYJ Board of Directors Harri Suutari President and CEO For additional information, contact: Harri Suutari, President & CEO, PKC Group Oyj, +358 400 384 937 PRESS CONFERENCE A press conference on the Interim Report will be arranged for analysts and investors today, 18 February 2010, at 10.00 a.m., at the address World Trade Center, Aleksanterinkatu 17, meeting room 4, 2nd floor, Helsinki. 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