2013-11-01 18:01:03 CET
2013-11-01 18:02:06 CET
REGULATED INFORMATION
Ixonos - Interim report (Q1 and Q3)
Ixonos Plc gives supplement to interim report dated on 25th October 2013
Helsinki, Finland, 2013-11-01 18:01 CET (GLOBE NEWSWIRE) --
Ixonos Plc Supplemented Interim report 1
November 2013, 19.00
IXONOS PLC GIVES SUPPLEMENT TO INTERIM REPORT DATED ON 25TH OCTOBER 2013
Ixonos gives supplement to Q3 2013 interim report announced on 25th October
2013 to correspond certain requirements related to the notes to the interim
report as set out in IAS 34 standard. For clarity, Ixonos has decided to
re-publish the entire interim report in question, and it is presented below in
full.
Compared to the interim report for the third quarter of 2013 published on 25
October 2013, the following additions have been made:
-- Abbreviated financial statements - section has been completed with
estimations concerning the going concern and the ability to utilize the
deferred tax assets
-- In table of figures section have been added more information concerning the
estimation and evaluation basics and parameters of goodwill impairment
test, provision of the Asian project and loan covenants.
-- Events after the review period -section has been updated with the
information concerning the changes of the number of the shares (1 November
2013), information concerning the co-operation negotiations (29.October
2013) and decisions made in extraordinary shareholders meeting and the
Board decisions after that (30. October 2013).
-- Key figures per share have been updated to reflect the impact of the
reverse share split approved by the extraordinary general meeting on 30
October.2013. The new number of shares has been registered on the trade
register on 1 November 2013.
Interim report for the period 1 January - 30 September 2013
CHALLENGING Q3, SIGNIFICANT NON-RECURRING ITEMS BURDENED THE QUARTER
-- EUR 2.3 million write-off in turnover and EUR 1.5 million loss provision
related to a project with an Asian operator signed in 2012.
-- EUR 1.6 million goodwill impairment due to changes in calculation
mechanism.
Q3/2013 in brief (last year's reference figures inside brackets):
-- Turnover for the third quarter before non-recurring items was EUR 7.8
million.
-- Turnover for the third quarter was EUR 5.5 million (2012: EUR 10.0
million), a change of -45.1 per cent.
-- Earnings before interest, taxes, depreciation and amortisation (EBITDA)
before non-recurring items was EUR -2.0 million.
-- Earnings before interest, taxes, depreciation and amortisation (EBITDA) was
EUR -5.8 million, -105.9 percent of turnover, (2012: EUR -5.1 million,
-51.2 percent of turnover).
-- Operating profit before non-recurring items was EUR -2.7 million
-- Operating profit was EUR -8.1 million, -147.8 percent of turnover (2012:
EUR -7.2 million, -72.6 percent of turnover).
-- Net profit was EUR -6.8 million, -124.0 per cent of turnover (2012: EUR
-6.2 million, -62.5 percent of turnover).
-- Earnings per share were EUR -1.01 (2012: EUR -1.41).
The reasons for the lower turnover in the third quarter compared to the
previous quarter, in addition to seasonal variation, were the write-off related
to the above-mentioned Asian project, decreased order book due to strategic
changes made by certain customers, as well as the challenging situation in the
Finnish market.
The operating profit for the third quarter has additionally been affected, in
addition to the turnover, by a one-off loss provision related to the
above-mentioned project. The company also performed a goodwill impairment test
at the end of the third quarter, resulting in impairment.
Review period in brief
-- Turnover for the review period was EUR 26.4 million (2012: EUR 44.1
million), a change of -40.1 per cent.
-- Earnings before interest, taxes, depreciation and amortisation (EBITDA) was
EUR -7.1 million, -27.0 percent of turnover, (2012: EUR -5.4 million, -12.3
percent of turnover).
-- Operating profit was EUR -10.9 million, -41.2 per cent of turnover
including goodwill impairment of EUR 1.6 million. (2012: EUR -19.0 million,
including goodwill impairment of EUR 9.2 million, -43.2 percent of
turnover).
-- Net profit was EUR -9.4 million, -35.4 per cent of turnover. (2012: EUR
-17.5 million, -39.8 percent of turnover).
-- Earnings per share were EUR -1.39 (2012: EUR -3.97).
-- Net cash flow from operating activities was EUR -6.7 million (2012: EUR
-1.6 million).
Future prospects in brief:
-- Ixonos estimates turnover for 2013 to be in the range of EUR 35-38 million.
EBITDA for the entire year is expected to be negative.
Esa Harju, President and CEO:
“The third quarter has been a disappointment for us after the positive
development during the first half of the year. In the end of summer we faced a
number of new challenges, the most significant of which was that a project
signed in 2012 with an Asian customer got delayed and turned unprofitable.
Additionally, certain customers made strategic changes resulting in a weakening
of our turnover. Furthermore, the market situation especially in Finland has
been difficult, with customers delaying purchase decisions, which has impacted
our business operations.
We have started a new significant group level cost saving initiative this
autumn, which will align our cost structure with the future revenue outlook. We
commenced co-operation negotiations with our personnel in Finland on 16
September 2013. We expect the savings to start having effect in our cost
structure from the end of November onwards, with majority of the effects
showing an impact within the first quarter of 2014.
Our cash position has continued to be challenging. After the review period, we
have announced our intention to structure our financing and to strengthen our
equity position with a share issue, as announced on 8 October 2013.
We have sharpened our strategy during the third quarter, and decided together
with the Board of Directors on the future direction and focus segments of the
company. According to the sharpened strategy, we focus the company's resources
toward the areas where we see the best chances to succeed and differentiate
ourselves as a design-oriented technology partner in chosen markets. In future
we strive to establish long-lasting relationships with our customers developing
for them new creative digital solutions. Our Dream, Design, Deliver value
proposal remains our core competitive advantage and we believe it sets us apart
from the competitors.
Despite the challenging third quarter and our cash position, we look to the
future with confidence. There is a market for our competence and we work
together with companies that are world leaders in their respective fields. We
move towards 2014 with our sharpened strategy and new organisation.”
OPERATIONS
Ixonos is a design-oriented technology company that provides creative digital
solutions and services for customer companies in selected target industries. We
help our customer companies embrace Internet and mobility for productivity and
unique user experiences for competitive advantage.
Ixonos' strategy is to operate as a creative technology partner in selected
target markets. Our core strength and unique differentiator is our ability to
combine our world-class design capability with strong technical implementation
skills, hence offering total end-to-end solutions that deliver strategic value
to our customers.
Ixonos' design services cover digital, mobile, web design as well as service
and industrial design. These holistic design services are based on
interdisciplinary work consisting of design strategy, design and user research,
design innovation and workshops, visual and interaction design, and prototyping
for various connected devices and services and ranging to complete
cross-platform design.
We excel in creative software development, both in embedded SW as well as in
online SW. We utilise open standard technologies (e.g. Linux, Android). We
combine the SW development capabilities with our world-leading technology
knowledge and our deep understanding of user interface design and usability and
excellent project management capabilities. This enables us to provide solutions
for our customers with quality and agility. Our technology competences cover
e.g. wireless connectivity, RF, audio, imaging and video technologies.
As per our sharpened strategy, our future target market segments include:
- Industry: Providing embedded and creative digital solutions for the
Industrial Internet. We help companies to transform from proprietary
technologies into standard open source technologies enabling increased
productivity and value for their customers. We provide digital innovations that
help them in their transformation to new digitally connected service business.
Ixonos partners with leading chipset manufacturers, providing state-of the art
platforms for our solutions. Our clientele in this segment consists of
companies such as Kone, Outotec, Cargotec, Grundfos and Metso.
- Media: Helping TV broadcasters, studios, production companies and operators
to offer increasingly interactive and personalised viewing experiences, as well
as new business models, through innovations such as Ixonos TV Compass™ 2nd
screen solution. Our clientele in this segment consists of companies such as
Fox, ESPN, MBC Group, Warner Brothers and Turner Entertainment.
- Retail & brands: Helping consumer-facing retail and service brands to
embrace Internet-based digital and mobile solutions for excelling in
omni-channel retailing, customer experience, productivity and service
innovation. Our clientele in this segment consists of companies such as
Stockmann and Iittala.
- Enterprise IT and ISVs: Providing secure and robust cloud and managed hosting
services with Ixonos Elastic Cloud™ solution. Ixonos virtual private cloud has
been designed for demanding enterprise use. It combines the security of a
private cloud with the scalability and workflow automation of public clouds.
Ixonos Elastic Cloud is also used as an operating platform for several
end-to-end solutions. Our clientele in this segment consists of companies such
as Fonecta, eZ Systems, Improlity, Efecte, Nokia and Propentus.
Utilising our high knowledge and assets we continue to serve our customers also
in other market segments, including:
- Automotive and Transportation, where our customers include Marcopolo,
Luminator, AvMap and Tier 1 car manufacturers.
- Smartphone OEMs, where our customers include Samsung, Huawei and Nokia.
- Defence & Security, where our customers include Cassidian and Savox
Communications.
- Finnish Public Sector, where our customers include Finland's Ministry of
Finance, Finland's Ministry of Social Affairs and Health as well as Tiera.
- Mobile Operators, where our customers include Orange, Vodafone and
TeliaSonera.
- Print Media, where our customers include National Geographic.
Organisation
During the review period Ixonos has been functioning as three business units:
Connected Devices, Online Solutions and Design. As part of the sharpened
strategy that was approved in August 2013, Ixonos has also renewed its
organisation.
The new structure, which will become effective on 1 November 2013, consists of:
- Sales & Marketing function in charge of customer relationships, sales
pipeline, order intake and profitable revenue generation.The unit is headed by
Teppo Kuisma, SVP, Sales.
- Solution Creation function in charge of customer project management and
profitable delivery, as well as offering portfolio management and R&D. The
unit is headed by Bo Lönnqvist, SVP, Solution Creation.
- Design function in charge of the design capabilities that are a unique
differentiator in our Dream Design Deliver approach.The unit is headed by Sami
Paihonen, SVP, Design.
- The whole organisation's operations are supported by efficient and
centralised support functions: Finance & Control and Human Resources.
The former Connected Devices and Online Solutions business units will be merged
into the above new organisational units.
Locations
We have our main offices in Finland, Denmark, Great Britain, Slovakia, and the
United States. Additionally we have employees in Estonia, Germany and South
Korea.
- Our Solution Creation sites are located in Finland, Denmark and Slovakia.
- Our Design Studios are located in Finland, Great Britain, the United States
and Slovakia.
- Our Sales offices are located in Finland, Great Britain, Germany, South Korea
and the United States.
SEGMENT REPORTING
Ixonos reports its operations as a single segment. According to the new
strategy and organisational structure, Ixonos is seen to be one cash generating
unit and segment. Ixonos announced its sharpened strategy on 22 October 2013.
TURNOVER
The company's turnover in the third quarter was EUR 5.5 million (2012: EUR 10.0
million), which is 45.1 per cent less than in the previous year.
Consolidated turnover for the review period was EUR 26.4 million (2012: EUR
44.1 million), which is 40.1 per cent less than in the previous year.
During the review period, no single customer generated a dominating share of
the turnover, or exceeded more than one fourth of the total turnover.
FINANCIAL RESULT
The operating result for the third quarter was EUR -8.1 million including
goodwill impairment of EUR 1.6 million (2012: EUR -7.2 million) and the result
before taxes was EUR -8.3 million (2012: EUR -7.4 million). The result for the
third quarter was EUR -6.8 million (2012: EUR -6.2 million). Third quarter
earnings per share was EUR -1.01 (2012: EUR -1.41). Cash flow per share from
operating activities in the third quarter was EUR -0.30 (2012: EUR -0.78).
The company's consolidated operating profit for the review period was EUR -10.9
million including goodwill impairment of EUR 1.6 million (2012: EUR -19.0
million including goodwill impairment of EUR 9.2 million) and profit before tax
was EUR -11.5 million (2012: EUR -19.4 million). Profit for the period was EUR
-9.4 million (2012: EUR -17.5 million). Earnings per share was EUR -1.39 (2012:
EUR -3.97). Cash flow per share from operating activities was EUR -1.00 (2012:
EUR -0.36).
RETURN ON CAPITAL
Consolidated return on equity (ROE) was -260.0 per cent (2012: -113.2 per cent)
and return on investment (ROI) was -80.0 per cent (2012: -78.7 per cent).
INVESTMENTS
Investments during the period totalled EUR 0.4 million (2012: EUR 2.9 million).
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 28.2 million (2012: EUR 36.7 million).
Shareholders' equity was EUR 2.1 million (2012: EUR 11.9 million). The equity
ratio was 7.5 per cent (2012: 32.5 per cent). The Group's liquid assets at the
end of the review period amounted to EUR 0.5 million (2012: EUR 0.5 million).
At the end of the review period, the balance sheet showed EUR 11.9 million
(2012: EUR 10.5 million) in bank loans. This amount includes overdraft in use.
The bank loans have covenants attached to them. These covenants are based on
the equity ratio and on the proportion of interest-bearing bank loans to the
12-month rolling operating profit.
At 30 September 2013, the company did not meet the terms of the covenants. The
company's non-current borrowings are therefore presented as current
liabilities, in accordance with IFRS. However, the company has received waivers
from its lenders for the second half of the year.
The company has taken a short-term loan from Oy Turreb Ab in the amount of EUR
2.5 million. The company announced the possibility for the loan agreement on 22
July 2013.
GOODWILL
On 30 September 2013, the consolidated balance sheet included EUR 10.8 million
in goodwill. This is EUR 3.6 million less than at the end of the review period
in 2012. The amount of goodwill has been reduced due to impairments recognised
in December 2012 and September 2013.
In September, the following parameters were used in the goodwill impairment
testing:
- The review period of 4 years (instead of former 5 years).
- WACC discount rate 12% (remained).
- 1% growth estimate used for terminal value calculation (remained).
Due to the increased speed of development in technology the review period has
been reduced to 4 years. The reduction of the review period led to the goodwill
impairment recognised in September.
CASH FLOW
Consolidated cash flow from operating activities during the period was EUR -6.7
million (2012: EUR 1.6 million). By 30 September 2013, the company had sold EUR
2.9 million (2012: EUR 3.4 million) in accounts receivable so as to reduce
their turnaround time.
PERSONNEL
The number of personnel averaged 523 (2012: 891) during the review period. At
the end of the period, the company had 481 (2012: 683) employees. Staff
decreased in Finland as well as abroad. At the end of the period, the Group had
351 employees (2012: 432) in Finnish companies, while Group companies in other
countries employed 130 (2012: 251). During the review period, the number of
employees decreased by 129.
SHARES AND SHARE CAPITAL
Share turnover and price
During the review period, the highest price of the company's share was EUR 0.68
(2012: EUR 1.20) and the lowest price was EUR 0.22 (2012: EUR 0.76). The
closing price on 30 September 2013 was EUR 0.24 (2012: EUR 0.82). The average
price over the review period was EUR 0.33 (2012: EUR 0.93). The number of
shares traded during the review period was 13,980,840 (2012: 2,710,190), which
corresponds to 39.7 per cent (2012: 17.9 per cent) of the total number of
shares at the end of the period. According to the closing price on 30 September
2013, the market value of the company's shares was EUR 8,457,391 (2012: EUR
12,233,012).
During the review period Ixonos completed a share issue directed to its present
shareholders. All of the issued 20,136,645 shares, totalling EUR 4.23 million,
were subscribed.
Share capital
At the beginning of the review period, the company's registered share capital
was EUR 585,394.16 and the number of shares was 15,102,484. At the end of the
review period, the company's registered share capital was EUR 585,394.16 and
the number of shares was 35,239,129.
Option plan 2011
The Board of Directors of Ixonos Plc decided on 30 November 2011 to grant new
options. This decision was based on the authorisation given by the Annual
General Meeting on 29 March 2011.
The options were issued by 31 December 2011, free of charge, to a subsidiary
wholly owned by Ixonos Plc. This subsidiary will distribute the options, as the
Board decides, to employees of Ixonos Plc and other companies in the Ixonos
Group, to increase their commitment and motivation. Options will not be issued
to members of the Board of Directors of Ixonos Plc or to the Ixonos Group's
senior management (Ixonos Management Invest Oy shareholders).
The options will be marked IV/A, IV/B and IV/C. A total of 600,000 options will
be issued. According to the terms of the options, the Board of Directors
decides how the options will be divided between option series and, if needed,
how undistributed options will be converted from one series to another.
Each option entitles its holder to subscribe for one new or treasury share in
Ixonos Plc. The shares that can be subscribed for with options comprise 1.67
per cent of all Ixonos Plc shares and votes on a fully diluted basis.
The exercise period for the IV/A options will begin on 1 October 2014, for the
IV/B options on 1 October 2015 and for the IV/C options on 1 October 2016. The
exercise periods for all options will end on 31 December 2018. The exercise
price for each option series is a trade volume weighted average price at NASDAQ
OMX Helsinki. The exercise prices will be reduced by the amount of dividends,
and they can also be adjusted under other circumstances specified in the option
terms.
The subscription ratio and exercise price of the option plan have been adjusted
with the Board of Directors' approval based on the share issue in February
2013, so that the subscription ratio is 2.333 and exercise price for the IV/A
options is 0.489 euros. The option plan's IV/B options have been cancelled and
the exercise price for IV/C options is 0.31 euros.
In total 600,000 shares have been allocated to employees in series IV/A, IV/B
and IV/C.
Shareholders
On 30 September 2013, the company had 3,445 shareholders (2012: 3,027). Private
persons owned 51.3 per cent (2012: 55.2 per cent) and institutions 48.7 per
cent (2012: 44.8 per cent) of the shares. Foreign ownership was 8.4 per cent
(2012: 7.1 per cent) of all shares.
Related-party transactions
During the review period Ixonos has taken a short term debt of EUR 2.5 million
from its largest shareholder, Oy Turret Ab. The debt falls due 31 December
2013. As collateral for the debt the company has put up corporate mortgage
bonds.
OTHER EVENTS DURING THE REVIEW PERIOD
Market events in the review period
At the beginning of 2013, Ixonos announced new accounts, including National
Geographic Society and Firstbeat Technologies. Ixonos and Sharp Europe reported
that they would collaborate to create mobile devices for mutual customers.
Ixonos also announced that Samsung Electronics had chosen the company as its
innovation partner, to focus particularly on developing the Android user
experience. A new product Ixonos Media Spark™ was launched in January 2013. In
February, technology components for embedded systems, was launched. These
components include a modern embedded Linux solution as well as a fast HD video
streaming solution suitable e.g. for closed circuit TV. In the end of March,
Ixonos reported that it was set to deliver the user experience design and
software of the infotainment solution for the luxury coaches of Brazilian bus
manufacturer Marcopolo. The solution is based on Ixonos IVI Connect ™
infotainment solution. In May Ixonos announced it had signed a new contract
expansion with an existing operator customer in Asia. In May Ixonos brought out
a unique service package for testing of smart electronic devices.
In August Ixonos announced that it has delivered for MBC Group a 2nd screen
solution based on the Ixonos TV Compass™ called MBC Now. The service, available
to MBC viewers in the Middle East and Northern Africa, synchronizes smart
devices with the TV set, converting tablets and smart phones into 2nd screen
devices. In August Ixonos also joined the 2nd Screen Society, which is
collaborating to create simpler, seamless integration of services across
devices and enabling increasingly social and stimulating experiences for
consumers. In September Ixonos proved itself to be a pioneer as an innovative
solutions provider with their virtual private cloud, by winning Red Hat's
European Cloud Partner of the Year award. In September and October Ixonos
introduced its signature hardware and user interface design languages
consecutively via blog posts written by SVP Sami Paihonen. The goal was to show
Ixonos' forward-thinking ability to design the best device designs and user
interfaces ahead of their time. We will continue to drive design and technology
innovations to chosen target customer markets.
New registration document
On 21 January 2013, Ixonos published its registration document, which the
Financial Supervisory Authority had approved on 17 January 2013, as provided in
the Securities Market Act (746/2012). The registration document contains
information about the company, its operations and its financial position. It is
valid for 12 months from the date of approval. The new registration document
includes a working capital statement noting that the company's present working
capital will not be sufficient for the company's needs over the next twelve
months, but that the company's working capital will be sufficient for the
company's needs over the next twelve months if the company's cash flow develops
as forecasted and planned and if the share issue is completed in its entirety.
However, there is no guarantee that the company will be able to fulfil its
financial covenants under all circumstances. If the company cannot comply with
its covenants, the financiers are entitled to e.g. call in the loans or
renegotiate the terms of the loans. If required, the company management
negotiates with its financiers on additional financing.
Share issue
Ixonos Plc's rights issue ended on 7 February 2013. All 20,136,645 shares
offered were subscribed for. The number of shares after the issue is
35,239,129. A total of 19,052,212 shares were subscribed for with subscription
rights. This amount corresponds to approximately 94.6 per cent of the shares
offered. In the secondary subscription, 5,358,879 shares were subscribed for
without subscription rights, and subscriptions for 1,084,433 shares were
accepted. The subscriptions thus correspond to approximately 121.2 per cent of
the shares offered. Ixonos raised approximately EUR 4.23 million gross through
the issue. As all offered shares were subscribed for, the underwriting
commitments that had been provided were not used.
On 16 January 2013, because of the rights issue, Ixonos' Board of Directors
adjusted the subscription ratio and exercise price associated with the option
rights in the 2011 option plan, in accordance with the terms of the options.
The adjustment was made to ensure equal treatment of option holders and
shareholders. It was announced in a stock exchange release on 13 February 2013.
Financial arrangements
In 22 July 2013 the company announced that its financiers had renewed a waiver
for premature payback of loans which include covenants until 31.12.2013, and
that it had secured a loan agreement for short term debt with Oy Turret Ab. The
loan agreement enables, if necessary, additional financing for a maximum of 2.5
million Euros until end of 2013.
Lowered revenue and profitability guidance and cost saving initiatives
Ixonos announced on 16 September 2013 that the forecasted revenue for 2013 will
be lower than the earlier guidance range of 40 - 50 MEUR. In the new guidance
the Company estimated 2013 revenue to be in the range of 35 - 38 MEUR. As a
result of the reduced revenue outlook, EBITDA for the full year is expected to
be negative.
The reasons for the changed forecast are the following: Project with an Asian
operator (based on contract signed in 2012) being delayed and becoming
loss-making, strategy changes amongst some other key customers, and weakening
market outlook and demand. Ixonos has booked a significant loss provision in
its Q3 profit and loss statement due to the Asian operator project.
Ixonos implements a set of global cost saving initiatives during the second
half of 2013, and as part of this commenced co-operation negotiations with its
personnel in Finland on 16 September 2013 for reasons related to production and
financial position.
The objective of the co-operation negotiations and other saving measures is to
align company's cost structure in line with turnover outlook and direction, and
to lay basis for profitable operations during 2014. The co-operation
negotiations apply to all Ixonos personnel in Finland, and the planned measures
include permanent dismissals as well as temporary layoffs, impacting a maximum
of 100 people. In addition, fixed-term temporary lay-offs regarding the whole
personnel will be under the negotiation scope.
On the date of publication of this review, the negotiations have not yet been
concluded.
Changes in the Management Team
During the review period the following changes have taken place:
-- Esa Harju took up his duties as President and CEO on 1 January 2013.
-- CFO Timo Leinonen left the company on 22 January 2013.
-- New CFO Teppo Talvinko took up his duties on 1 February 2013.
-- Vice President Pasi Iljin left the company on 11 April 2013.
-- Bo Lönnqvist was appointed as the new head of Connect Devices business
unit, as of 1 July 2013.
-- Satu Roininen was appointed head of Human Resources, as of 8 July 2013.
EVENTS AFTER THE REVIEW PERIOD
Notice of Ixonos Plc's Extraordinary General Meeting on 30 October 2013 and
share issue
On 8 October 2013 Ixonos announced it was preparing a share issue pursuant to
the shareholders' pre-emptive right to subscription in which a maximum amount
of 120,000,000 new shares will be issued for subscription by the shareholders
based on the authorisation of the Extraordinary General Meeting. The Share
Issue requires, among other things, the approval of the Extraordinary General
Meeting and the above share amount is based on the assumption that the
shareholders meeting will at the same time decide on a reverse share split
where five (5) existing shares are combined into one (1) new share for the
purposes laid down in Chapter 15, Section 9 of the Finnish Companies Act.
The Company intends to raise a maximum amount of EUR 10.5 million in the Share
Issue of which a maximum amount of EUR 3.5 million may be raised by issuing
shares in a directed share issue or option rights or other special rights
entitling to shares that are set out in Chapter 10, Section 1 of the Companies
Act ("Options or Other Special Rights").
Financial arrangements
In 24 October 2013 the company announced that it had secured a loan agreement
for short term debt possibility with Oy Turret Ab. The loan agreement enables,
if necessary, additional financing for a maximum of 1.0 million Euros until 30
November 2013.
Ixonos co-operating negotiations concluded
The co-operation negotiations, which Ixonos commenced on 16 September 2013,
have been concluded today, 29 October 2013. As the result of the negotiations
permanent dismissals and temporary layoffs will be issued to a maximum of 85
persons. In addition, two-week fixed-term temporary lay-offs will be issued to
12 persons in administration.
Decisions of Ixonos Plc's extraordinary general meeting on 30 October 2013 and
consecutive decisions by board of directors and new subscription commitments
The company announced decisions of Ixonos Plc's extraordinary general meeting
on 30 October 2013 and consecutive decisions by board of directors and new
subscription commitments.
Ixonos' number of shares has changed
The Extraordinary General Meeting of Ixonos Plc (the "Company") held on 30
October 2013 decided that the number of shares will be reduced without reducing
the share capital by conducting a reverse share split where five (5) existing
shares are combined into one (1) new share for the purposes laid down in
Chapter 15 Section 9 of the Finnish Limited Liability Companies Act and in
accordance with the procedure set out therein. Such procedure has been
described in more detail in the Company's stock exchange release given on 30
October 2013.
The new number of shares of the Company 7,047,825 has today been entered into
the Trade Register. Trading with the consolidated shares will begin on Monday,
4 November 2013.
RISK MANAGEMENT AND NEAR-FUTURE UNCERTAINTY FACTORS
Ixonos Plc's risk management aims to ensure undisturbed continuity and
development of the company's operations, support attainment of the commercial
targets set by the company and promote increasing company value. Details on the
risk management organisation and process as well as on recognised risks are
presented on the company's website at www.ixonos.com.
Changes in key customer accounts may have adverse effects on Ixonos'
operations, earning power and financial position. Should a major customer
switch its purchases from Ixonos to its competitors or make forceful changes to
its own operating model, Ixonos would have limited ability to acquire, in the
short term, new customer volume to compensate for such changes.
Part of the company's business operations is based on fixed-price project
deliveries. Fixed-price projects may include risks related to their duration
and content. These risk are being managed by means of contract management as
well as project management.
The reduction and rationalisation of the company's operations causes one-time
expenses, such as redundancy payments in various countries. This increases the
company's need for short-term financing. The company manages this need by
creating, together with financiers, adequate buffers to ensure sufficient funds
as well as by facilitating the circulation of working capital.
The company's balance sheet also includes a significant amount of goodwill,
which may still be impaired should internal or external factors reduce the
profit expectations of the company's cash flow. Goodwill is tested during the
final quarter of each year and, if necessary, at other times.
The company's financial agreements have covenants attached to them. A covenant
breach may increase the company's financial expenses or lead to a call for
swift partial or full repayment of non-equity loans. The main risks related to
covenant breaches are associated with operating profit fluctuation due to the
market situation and with a potential need to increase the company's working
capital through non-equity funding. The company manages these risks by
negotiating with financiers and by maintaining readiness for various financing
methods.
There is a risk that the company's working capital will not be sufficient to
fund the company's operations over the next twelve months. Although the company
considers that it will be able to cover its need for working capital over the
next twelve months through various means, there is no guarantee that the
company will be able to ensure sufficient working capital under all
circumstances. A shortage of working capital may have a substantial adverse
effect on the company's operations, result and financial position.
The company has signed a project agreement in 2012 with an Asian operator
customer, as announced on 12 November 2012. The project has been delayed and
turned loss-making during the third quarter of 2013, which has led the company
to make a significant loss provision in its Q3 profit and loss statement. The
project still carries further uncertainties and risks related to differences in
opinion concerning the project delivery and its contents as stipulated in the
agreement. The company is using usual limitations of liability clauses (as well
as insurances when possible) to manage such business risks.
LONG-TERM GOALS AND STRATEGY
In the long term, Ixonos aims to achieve an operating profit of at least 10 per
cent. To reach its long-term goals, Ixonos focuses its strategy on deepening
the company's product, solution and service operations as well as on new
accounts in selected industries.
In accordance with its strategy, Ixonos continues to strengthen and expand its
customer base by focusing on offering products, solutions and services in
particular for industrial companies, media companies, retailers and brands,
organisation IT and ISVs, and to other customers in Finland as well as
internationally.
FUTURE PROSPECTS
Ixonos estimates turnover for 2013 to be in the range of EUR 35-38 million.
EBITDA for the entire year is predicted to be negative.
NEXT REPORTS
The publication of the interim reportfor the period 1 January - 31 December
2013 will be announced later.
IXONOS PLC
Board of Directors
For more information, please contact:
Ixonos Plc
- Esa Harju, President and CEO, tel. +358 40 844 3367, esa.harju@ixonos.com
- Teppo Talvinko, CFO, tel. +358 40 715 3660, teppo.talvinko@ixonos.com
Distribution:
NASDAQ OMX Helsinki
Main media
THE IXONOS GROUP
ABBREVIATED FINANCIAL STATEMENTS 1 January - 30 September 2013
Accounting policies
This financial statement bulletin has been prepared in accordance with IAS 34
(Interim Financial Reporting) and the accounting policies for the annual
financial statement of 31 December 2012. The IFRS amendments and
interpretations that entered into force on 1 January 2013 have not affected the
consolidated financial statements.
Preparing the financial statements in accordance with IFRS requires Ixonos'
management to make estimates and assumptions that affect the amounts of assets
and liabilities on the balance sheet date as well as the amounts of income and
expenses for the review period. In addition, judgment must be used in applying
the accounting policies. As the estimates and assumptions are based on views
prevailing at the time of releasing the interim report, they involve risks and
uncertainty factors. Actual results may differ from estimates and assumptions.
The figures in the income statement and balance sheet are consolidated. The
consolidated balance sheet includes all group companies as well as Ixonos
Management Invest Oy, a company owned by members of Ixonos' management. The
original interim report is in Finnish. The interim report in English is a
translation of the original report.
As the figures in the report have been rounded, sums of individual figures may
differ from the sums presented. The interim report is unaudited.
Going Concern
This interim report has been made according to the going concern principle
taking into account the ongoing financial arrangements, new strategy and
financial estimations made up to the end of year 2014. The estimations take
into consideration probable or foreseeable changes in future expectations in
revenues as well as costs. There have been significant challenges after the
company's most significant client changed its strategy during years 2011-2012.
The profitability has been negative, even though the company has adopted its
operations to meet significantly lower cost level and gained new customers. The
company has further re-scoped its costs and this will continue after the
co-operation talks concluded. The company has taken and takes also further
actions to reduce the level of fixed costs like site and office related costs.
The ongoing cost saving actions will improve the cost structure and
profitability during the Q4 2013 and 2014. The company has renewed its strategy
during the 2013 and selected the customer focus segments where mobile internet
technology is seen to change the earning fundamentals of Ixonos' target
customer segments. The company views, that Ixonos' core competence has a great
growth potential in the selected segments.
The company views, that it must ensure additional financing in order to be able
to finance its operations and to repay its debts over the next 12 months.
Ixonos takes further actions to strengthen its balance sheet and to assure
sufficient amount of working capital. On 8 October 2013 Ixonos announced it was
preparing a share issue pursuant to the shareholders' pre-emptive right to
subscription in which a maximum amount of 120,000,000 new shares will be issued
for subscription by the shareholders. The Company intends to raise a maximum
amount of EUR 10.5 million in the Share Issue of which a maximum amount of EUR
3.5 million may be raised by issuing shares in a directed share issue or option
rights or other special rights entitling to shares that are set out in Chapter
10, Section 1 of the Companies Act . The mandate was given in extraordinary
sgeneral meeting on 30.October 2013. The company has also asked a waiver till
the end of 2014 for premature payback of loans which include covenants, if
covenants would have been broken in 2014. The management of Ixonos is confident
that the company will get the waivers.
The sufficient level of working capital and ability to continue as going
concern is subject to realization of subscription rights issue and a directed
share issue or option rights or other special rights entitling to shares in a
sufficient amount, waivers from the financiers not to call in the loans in
accordance with the loan agreements as well as realization of the company's
estimations concerning the financial performance in 2014. If the above measures
do not occur asplanned, this may result a shortage of working capital,
premature payback of loans with covenants and difficulties to continue
company's operations during the following 12 months.
Deferred tax assets
The company has deferred tax assets MEUR 4,8 of which MEUR 4,5 arises from
Finnish companies from year 2012. According to the current tax regulations in
Finland, Ixonos has time to utilize tax assets up to 2022. The company views
that it is going concern and it has sufficient possibilities with normal
business assumptions to utilize the tax assets in the future.
The subsidiary in United Kingdom carries MEUR 0,5 deferred tax assets. The
subsidiary was established in October 2011. Ramping up the company, customer
base and its operations causes additional costs compared to the normal
operating mode which is considered to be achieved at the end of 2013. The
subsidiary in UK is part of Ixonos' new, design oriented strategy. The validity
of deferred tax assets in UK has no time limit. Ixonos views that the
subsidiary has probable possibilities to utilize tax assets during the time.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
1.1.-30.9.2 1.1.-30.9.2 Muutos 1.1.-31.12.
013 012 % 2012
--------------------------------------------------------------------------------
Turnover 26,388 44,066 -40.1 56,852
--------------------------------------------------------------------------------
Operating expenses -35,660 -53,910 -33.9 -69,969
--------------------------------------------------------------------------------
OPERATING PROFIT BEFORE GOODWILL -9,271 -9,844 -5.8 -13,117
IMPAIRMENT
--------------------------------------------------------------------------------
Goodwill impairment -1,600 -9,200 -82.6 -11,200
--------------------------------------------------------------------------------
OPERATING PROFIT -10,871 -19,044 -42.9 -24,317
--------------------------------------------------------------------------------
Financial income and expenses -604 -391 54.2 -700
--------------------------------------------------------------------------------
Profit before tax -11,475 -19,436 -41.0 -25,018
--------------------------------------------------------------------------------
Income tax 2,120 1,881 12.7 3,043
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD -9,356 -17,555 -46.7 -21,975
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent -9,430 -17,532 -46.2 -21,948
--------------------------------------------------------------------------------
Non-controlling interests 75 -23 -429.5 -27
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, EUR 1,000
Profit for the period -9,356 -17,555 -46.7 -21,975
--------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------
Change in translation difference 6 -16 -11
--------------------------------------------------------------------
COMPREHENSIVE INCOME FOR THE PERIOD -9,350 17,571 -21,987
--------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, EUR 1,000
ASSETS 30.9.2013 30.9.2012 31.12.2012
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Goodwill 10,847 14,447 12,447
--------------------------------------------------------------------------------
Other intangible assets 1,841 3,090 2,646
--------------------------------------------------------------------------------
Property, plant and equipment 2,384 3,863 3,410
--------------------------------------------------------------------------------
Deferred tax assets 4,780 1,853 2,780
--------------------------------------------------------------------------------
Available-for-sale investments 14 19 19
--------------------------------------------------------------------------------
TOTAL NON-CURRENT ASSETS 19,866 23,273 21,303
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Trade and other receivables 7,804 12,944 11,551
--------------------------------------------------------------------------------
Cash and cash equivalents 508 526 477
--------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 8,312 13,470 12,028
--------------------------------------------------------------------------------
TOTAL ASSETS 28,178 36,743 33,331
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES 30.9.2013 30.9.2012 31.12.2012
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
Share capital 585 585 585
--------------------------------------------------------------------------------
Share premium reserve 219 219 219
--------------------------------------------------------------------------------
Invested non-restricted equity fund 24,157 20,277 20,247
--------------------------------------------------------------------------------
Retained earnings -13,670 8,185 8,214
--------------------------------------------------------------------------------
Profit for the period -9,430 -17,532 -21,948
--------------------------------------------------------------------------------
Equity attributable to equity holders of the 1,861 11,734 7,317
parent
--------------------------------------------------------------------------------
Non-controlling interests 246 177 172
--------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 2,108 11,911 7,489
--------------------------------------------------------------------------------
LIABILITIES
--------------------------------------------------------------------------------
Non-current liabilities 770 9,035 1,521
--------------------------------------------------------------------------------
Current liabilities 25,300 15,797 24,320
--------------------------------------------------------------------------------
TOTAL LIABILITIES 26,070 24,832 25,841
--------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 28,178 36,743 33,331
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY, EUR 1,000
A: Share Capital
B: Share premium reserve
C: Share issue
D: Invested non-restricted equity fund
E: Translation difference
F: Retained earnings
G: Total equity attributable to equity holders of the parent
H: Non-controlling interests
I: Total equity
A B C D E F G H I
--------------------------------------------------------------------------------
Shareholders' equity at 1 585 219 0 20 313 86 8,045 29,248 200 29,448
January 2012
--------------------------------------------------------------------------------
Profit for the period -17,53 -17,53 -23 -17,55
2 2 5
--------------------------------------------------------------------------------
Other comprehensive
income:
--------------------------------------------------------------------------------
Change in translation -16 -16 -16
difference
--------------------------------------------------------------------------------
Transactions with
shareholders:
--------------------------------------------------------------------------------
Expenses for equity -36 -36 -36
procurement
--------------------------------------------------------------------------------
Share-based remuneration 70 70 70
--------------------------------------------------------------------------------
Shareholders' equity at 585 219 0 20,276 70 -10,15 11,733 177 11,911
30 September 2012 8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity at 1 585 219 0 20 247 75 -13,81 7,317 172 7,489
January 2013 0
--------------------------------------------------------------------------------
Profit for the period -9,430 -9,430 75 -9,356
--------------------------------------------------------------------------------
Other comprehensive
income:
--------------------------------------------------------------------------------
Change in translation 6 6 6
difference
--------------------------------------------------------------------------------
Transactions with
shareholders:
--------------------------------------------------------------------------------
Shareissue 4,229 4,229 4,229
--------------------------------------------------------------------------------
Expenses for equity -319 -319 -319
procurement
--------------------------------------------------------------------------------
Share-based remuneration 59 59 59
--------------------------------------------------------------------------------
Shareholders' equity at 585 219 0 24,157 81 -23,18 1,861 246 2,108
30 September 2013 1
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
1.1.-30.9.2013 1.1.-30.9.2012 1.1.-31.12.2012
--------------------------------------------------------------------------------
Cash flow from operating
activities
--------------------------------------------------------------------------------
Profit for the period -9,356 -17,555 -21,975
--------------------------------------------------------------------------------
Adjustments to cash flow from
operating activities
--------------------------------------------------------------------------------
Income tax -2,120 -1,881 -3,043
--------------------------------------------------------------------------------
Depreciation and impairment 3,750 13,644 16,823
--------------------------------------------------------------------------------
Financial income and expenses 604 392 700
--------------------------------------------------------------------------------
Other adjustments -26 34 -13
--------------------------------------------------------------------------------
Change in provisions -936 1,640 1,066
--------------------------------------------------------------------------------
Cash flow from operating -8,083 -3,726 -6,441
activities before change in
working capital
--------------------------------------------------------------------------------
Change in working capital 1,781 2,877 6,491
--------------------------------------------------------------------------------
Interest received 166 76 79
--------------------------------------------------------------------------------
Interest paid -693 -493 -796
--------------------------------------------------------------------------------
Tax paid 140 -324 -372
--------------------------------------------------------------------------------
Net cash flow from operating -6,690 -1,590 -1,039
activities
--------------------------------------------------------------------------------
Cash flow from investing
activities
--------------------------------------------------------------------------------
Investments in tangible and -42 -1,168 -1,275
intangible assets
--------------------------------------------------------------------------------
Dividends received 0 4 4
--------------------------------------------------------------------------------
Net cash flow from investing -42 -1,164 -1,271
activities
--------------------------------------------------------------------------------
Net cash flow before financing -6,732 -2,755 -2,310
--------------------------------------------------------------------------------
Cash flow from financing
activities
--------------------------------------------------------------------------------
Increase in long-term 0 4,415 4,415
borrowings
--------------------------------------------------------------------------------
Repayment of long-term -400 -1,520 -1,920
borrowings
--------------------------------------------------------------------------------
Increase in short-term 4,500 315 588
borrowings
--------------------------------------------------------------------------------
Repayment of short-term -1,241 -1,363 -1,740
borrowings
--------------------------------------------------------------------------------
Proceeds from share issue 4,229 0 0
--------------------------------------------------------------------------------
Expenses for equity procurement -319 -36 -18
--------------------------------------------------------------------------------
Net cash flow from financing 6,769 1,812 1,325
activities
--------------------------------------------------------------------------------
Change in cash and cash 31 -944 -989
equivalents
--------------------------------------------------------------------------------
Liquid assets at the beginning 477 1,466 1,466
of the period
--------------------------------------------------------------------------------
Liquid assets at the end of the 508 526 477
period
--------------------------------------------------------------------------------
Notes
Goodwill impairment
Ixonos made impairment test for goodwill as at 30 October 2013. Based on the
results of the impairment test Ixonos recognised an impairment loss of 1.6
million euro. The carrying amount of goodwill is 10.8 million euro after the
impairment loss recognised. The gross profit of the company is expected to be
negative for year 2013. The company has shortened the forecasting period used
in value in use calculation from five to four years. This is due to a point of
view that the space of change has increased in the business environment of
Ixonos. The company has initiated a strategy process during the year 2013 to
re-evaluate its business model. In the old business model use in 31 December
2012 there were two cash generating units, Online Solutions and Connected
Devices. The old business model was based on services provided. In the new
business model implemented in 2013 the Company has been reorganised into on
cash generating unit. Based on new strategy the Company has one common Sales& Marketing function and common production and product development
functions. These functions will serve all chosen customers. The company
prepares its budgets and forecasts as one cash generating unit.
The impairment test of the Company is based on value in use. The forecasting
period used in impairment testing as at 30 October 2013 includes Q4 2013 and
years 2014-2017. The impairment test is done by comparing the carrying value of
assets to present value of future cash flow taking into consideration
forecasted cash flows during the forecast period, discount factor and growth
rate used in calculating terminal value. The discount factor used is 12 per
cent p.a. and growth rate use in calculating terminal value is 1 per cent p.a.
These are the same as use in goodwill impairment testing for year-end 2012. The
impairment test is the most sensitive to growth rate used when calculating the
terminal value and discount factor. If the growth rate had been lowered to 0.5
per cent instead of 1 per cent, and additional impairment loss of 0,5 million
euro would have been recognised. If the discount factor had been 13 per cent
instead of 12 per cent, it would have resulted in an additional impairment loss
of 1.0 million.
Changes in estimates related to revenue recognition
The amount of the reported turnover for the third quarter of 2013 is decreased
by material changes in estimates used in recognizing the turnover from a
long-term project signed in 2012 with an Asian operator. The multi-million Euro
contract price as published in the beginning of the project is estimated to be
decreased materially. The estimate is based on the company's management's view
on the revenue for the remaining project and related need for resources.
Loan covenants
Loans granted by the company's financiers have covenants attached. Should the
company not be within the limits of a covenant, the financiers are entitled to
call in the loans to which that covenant applies. The covenant levels are
adjusted semi-annually on a rolling twelve-month basis.
Depending on the point in time, the equity ratio must be at least 35 per cent.
For some loans, the ratio of interest-bearing liabilities (i.e.
interest-bearing liabilities in the balance sheet, including leasing
liabilities) to operating profit may not exceed 2.5 on 30 June 2013 onward. The
ratios of interest-bearing liabilities to operating profit as well as the ratio
of interest-bearing net liabilities to operating profit are calculated based on
IFRS principles.
The amount of those financing loans that included covenants had a capital of
EUR 7.2 million on 30 October 2013 (31 December 2012: EUR 7.6 million). On 30
October 2013 the company's equity ratio was 7,5 percent (2012: 32,5 percent)
and the ratio of interest-bearing liabilities and the operating profit was
negative (2012: negative). Thus, the company does not fulfil the covenant terms
on 30 October 2013 and the loans under convent agreements are presented as
short-term current liabilities. However, the company has received releasing
covenant statements from its financiers until 31 December 2013.
Instalment scheme for borrowings under covenants
Period Amount of instalment EUR 1,000
---------------------------------------------------
01.10. - 31.12.2013 792
---------------------------------------------------
01.01. - 31.12.2014 1,974
---------------------------------------------------
01.01. - 31.12.2015 1,621
---------------------------------------------------
01.01. - 31.12.2016 1,621
---------------------------------------------------
01.01. - 31.12.2017 1,229
---------------------------------------------------
CONSOLIDATED INCOME STATEMENT, QUARTERLY, EUR 1,000
Q3/2013 Q2/2013 Q1/2013 Q4/2012 Q3/2012
1.7.-30. 1.4.-30. 1.1.-31. 1.10.-31.1 1.7.-30.
9.13 6.13 3.13 2.12 9.12
--------------------------------------------------------------------------------
Turnover 5,477 10,112 10,799 12,786 9,977
--------------------------------------------------------------------------------
Operating expenses -11,972 -10,973 -12,715 -16,060 -17,216
--------------------------------------------------------------------------------
OPERATING PROFIT BEFORE -6,494 -861 -1,916 -3,273 -7,239
GOODWILL IMPAIRMENT
--------------------------------------------------------------------------------
Goodwill impairment -1,600 0 0 -2,000 0
--------------------------------------------------------------------------------
OPERATING PROFIT -8,094 -861 -1,916 -5,273 -7,239
--------------------------------------------------------------------------------
Financial income and -248 -257 -99 -309 -183
expenses
--------------------------------------------------------------------------------
Profit before tax -8,343 -1,117 -2,015 -5,582 -7,422
--------------------------------------------------------------------------------
Income tax 1,550 183 386 1,162 1,190
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD -6,793 -934 -1,629 -4,420 -6,232
--------------------------------------------------------------------------------
CHANGES IN FIXED ASSETS, EUR 1,000
Goodwi Intangible Property, plant Available-for-s Total
ll assets and equipment ale investments
--------------------------------------------------------------------------------
Carrying amount at 23,647 5,138 3,391 110 32,286
1 January 2012
--------------------------------------------------------------------------------
Additions 990 1,887 2,877
--------------------------------------------------------------------------------
Changes in 1 4 5
exchange rates
--------------------------------------------------------------------------------
Disposals and -13 -91 -104
transfers
--------------------------------------------------------------------------------
Impairment -9,200 -9,200
--------------------------------------------------------------------------------
Depreciation for -3,039 -1,405 -4,444
the period
--------------------------------------------------------------------------------
Carrying amount at 14,447 3,090 3,863 19 21,420
30 September 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Carrying amount at 12,447 2,646 3,410 19 18,522
1 January 2013
--------------------------------------------------------------------------------
Additions 61 295 356
--------------------------------------------------------------------------------
Changes in -1 -1
exchange rates
--------------------------------------------------------------------------------
Disposals and -37 -5 -42
transfers
--------------------------------------------------------------------------------
Impairment -1,600
--------------------------------------------------------------------------------
Depreciation for -866 -1,284 -2,150
the period
--------------------------------------------------------------------------------
Carrying amount at 10,847 1,841 2,384 14 15,086
30 September 2013
--------------------------------------------------------------------------------
FINANCIAL RATIOS
1.1.-30.9.20 1.1.-30.9.20 1.1.-31.12.20
13 12 12
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR* -1,39 -3,97 -4,98
--------------------------------------------------------------------------------
Earnings per share, EUR* -1,39 -3,97 -4,98
--------------------------------------------------------------------------------
Equity per share, EUR* 0,30 1,69 1,03
--------------------------------------------------------------------------------
Operating cash flow per share, -1,00 -0,36 -0,22
diluted, EUR*
--------------------------------------------------------------------------------
Return on investment, per cent -80,0 -78,2 -81,6
--------------------------------------------------------------------------------
Return on equity, per cent -260,0 -113,2 -119,0
--------------------------------------------------------------------------------
Operating profit ∕ turnover, per cent -41,2 -43,2 -42,8
--------------------------------------------------------------------------------
Net gearing, per cent 603,4 104,2 161,95
--------------------------------------------------------------------------------
Equity ratio, per cent 7,5 32,5 22,5
--------------------------------------------------------------------------------
EBITDA, 1000 EUR -7,121 -5,400 -7,494
--------------------------------------------------------------------------------
*Adjusted to reflect the impact of the reverse share split approved by the
extraordinary general meeting on 30 October.2013.
OTHER INFORMATION
1.1.- 1.1.- 1.1.- 30.9.2013 30.9.2012 31.12.2012
-------------------------------------------------------------------------------
PERSONNEL 523 891 824
Employees, average
-------------------------------------------------------------------------------
Employees, at the end of the period 481 683 610
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMITMENTS, EUR 1,000 30.9.2013 30.9.2012 31.12.2012
-------------------------------------------------------------------------------
Collateral for own commitments
-------------------------------------------------------------------------------
Corporate mortgages 22,300 19,800 19,800
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Leasing and other rental commitments
-------------------------------------------------------------------------------
Falling due within 1 year 2,661 3,813 2,726
-------------------------------------------------------------------------------
Falling due within 1-5 years 4,521 3,354 3,408
-------------------------------------------------------------------------------
Falling due after 5 years 0 0 243
-------------------------------------------------------------------------------
Total 7,182 7,167 6,377-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Nominal value of interest rate swap agreement
-------------------------------------------------------------------------------
Falling due within 1 year 0 906 0
-------------------------------------------------------------------------------
Falling due within 1-5 years 5,270 1,086 5,270
-------------------------------------------------------------------------------
Falling due after 5 years 0 0 0
-------------------------------------------------------------------------------
Total 5,270 1,992 5,270
-------------------------------------------------------------------------------
Fair value -47 -30 -87
-------------------------------------------------------------------------------
CALCULATION OF KEY FIGURES
Diluted earnings per share = profit for the period ∕ number of shares, adjusted
for issues and dilution, average
Earnings per share = profit for the period ∕ number of shares, adjusted for
issues, average
Shareholders' equity per share = shareholders' equity ∕ number of shares,
undiluted, on the closing date
Cash flow from operating activities, per share, diluted = net cash flow from
operating activities ∕ number of shares, adjusted for issues and dilution,
average
Return on investment = (profit before taxes + interest expenses + other
financial expenses) ∕ (balance sheet total − non-interest-bearing liabilities,
average) × 100
Return on equity = net profit ∕ shareholders' equity, average × 100
Gearing = (interest-bearing liabilities - liquid assets) / shareholders' equity
× 100
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