2012-04-26 07:00:00 CEST
2012-04-26 07:02:27 CEST
REGULATED INFORMATION
Elektrobit Oyj - Interim report (Q1 and Q3)
EB, ELEKTROBIT CORPORATION, INTERIM REPORT JANUARY-MARCH 2012
STOCK EXCHANGE RELEASE
Free for publication on April 26, 2012, at 8.00 a.m. (CEST+1)
EB, ELEKTROBIT CORPORATION, INTERIM REPORT JANUARY-MARCH 2012
NET SALES IN AND OPERATING PROFIT GREW CLEARLY FROM PREVIOUS YEAR
SUMMARY 1Q 2012
* Net sales of the period grew to EUR 48.6 million (EUR 36.5 million,
1Q 2011), representing an increase of 33.2 % year-on-year. Net sales of
Automotive Business Segment grew to EUR 28.7 million (EUR 23.6 million,
1Q 2011), representing a 21.5 % growth year-on-year. The Wireless Business
Segment's net sales grew by 57.6 %, to EUR 20.0 million (EUR 12.7 million,
1Q 2011).
* Operating profit was EUR 0.9 million (EUR -3.9 million, 1Q 2011). Operating
profit of the Automotive Business Segment was EUR 0.9 million (EUR 0.6
million, 1Q 2011). The Wireless Business Segment's operating result was EUR
0.0 million (operating loss of EUR -4.6 million, 1Q 2011).
* EBITDA was EUR 2.5 million (EUR -1.6 million, 1Q 2011). Automotive Business
Segment's EBITDA was EUR 1.9 million and Wireless Business Segment's EBITDA
was EUR 0.7 million.
* Cash flow from operating activities was EUR -0.9 million (EUR 1.4 million,
1Q 2011). Net cash flow was EUR -2.7 million (EUR -2.4 million, 1Q 2011).
* Cash and other liquid assets totaled EUR 7.3 million (EUR 18.1 million,
1Q 2011).
* Equity ratio remained strong at 61.2% (63.6%, 1Q 2011).
* Earnings per share were EUR 0.00 (EUR -0.03, 1Q 2011).
EB'S CEO JUKKA HARJU:"The year started with strong growth of 33.2 % in net sales as both Business
Segments grew clearly. The high growth of net sales in Wireless Business Segment
came from the mobile infrastructure R&D and defence and public safety markets
which started to grow already during last year. The growth in Automotive
Business Segment continued at the same level as in previous year. EB's operating
result improved clearly from last year.
Improving the profitability is our most important goal in 2012. The outlook for
growth of net sales in both Business Segments is good and this together with the
improved cost structure of Wireless Business Segment gives a good possibility
for positive development of the business in 2012."
OUTLOOK FOR 2012
Compared to the previous year, the demand for EB's products and services is
estimated to grow year-on-year during 2012 in both Automotive and Wireless
Business Segments. Carmakers continue to invest in software for new car models
and the market for automotive software products and services is estimated to
continue growing. In Wireless Business Segment the demand growth will be driven
by especially the increasing use of the LTE technology that increases the
performance of mobile networks and the authorities' needs for new communication
solutions that use commercial technologies of smart phones and mobile networks.
EB expects for the year 2012 that net sales and operating result will grow
clearly from the previous year (net sales of EUR 162.2 million, and operating
loss of EUR -4.0 million in 2011). For the first half of 2012 EB expects that
the net sales will grow clearly (EUR 76.1 million in 1H 2011) and operating
result will be positive (EUR -4.4 million in 1H 2011).
The profit outlook for the year 2012 is based on the assumption that there will
be no further bookings of impairments of EB's accounts receivable from TerreStar
Networks Inc. and TerreStar Corporation. It is possible that, based on later
information related to reorganizations of TerreStar Networks and TerreStar
Corporation, this view may need to be reconsidered. Due to the uncertainties
related to the outcome of reorganization processes of TerreStar Networks and
TerreStar Corporation, the credit risk may still grow during 2012. More
specific market outlook is presented under the "Business Segments' development
during January-March 2012 and market outlook" section, and uncertainties
regarding reorganization of TerreStar Networks and TerreStar Corporation, the
amount of the receivables and collecting the receivables as well as other
uncertainties regarding the outlook under "Risks and Uncertainties" section.
Information on TerreStar Networks' and TerreStar Corporation's reorganizations
are presented in the October 20 and 25, November 20 and December 30, 2010,
February 17, 2011, and November 18, 2011 stock exchange releases as well as in
EB's interim reports and financial statement at www.elektrobit.com.
INVITATION TO A PRESS CONFERENCE
EB will hold a press conference on the Interim Report 1Q 2012 for media,
analysts and institutional investors in Finland, Oulu, Tutkijantie 8, meeting
room 1 on Thursday, April 26, 2012, at 11.00 a.m. (CEST+1). The conference will
also be held as a conference call and the presentation will be shown
simultaneously in the Internet through WebEx. The conference will be held in
English. For more information please go to www.elektrobit.com/investors.
EB, Elektrobit Corporation
EB creates advanced technology and turns it into enriching end-user experiences.
EB is specialized in demanding embedded software and hardware solutions for
wireless and automotive industries. The net sales for the year 2011 totaled MEUR
162.2. Elektrobit Corporation is listed on NASDAQ OMX Helsinki.
www.elektrobit.com
EB, ELEKTROBIT CORPORATION, INTERIM REPORT JANUARY-MARCH 2012
FINANCIAL PERFORMANCE DURING JANUARY-MARCH 2012
(Corresponding figures are for January-March 2011 unless otherwise indicated)
EB's net sales during January-March 2012 grew strongly by 33.2 per cent year-on-
year to EUR 48.6 million (EUR 36.5 million). Operating profit was EUR 0.9
million (operating loss of EUR -3.9 million).
Net sales of the Automotive Business Segment grew in January-March 2012 to EUR
28.7 million (EUR 23.6 million), representing 21.5 per cent growth year-on-year.
The operating profit was EUR 0.9 million (EUR 0.6 million).
The Wireless Business Segment's net sales in January-March 2012 grew strongly,
57.6 per cent year-on-year, to EUR 20.0 million (EUR 12.7 million). The net
sales grew mainly in the defence and public safety markets, and in the mobile
infrastructure R&D markets. The operating result of the Wireless Business
Segment in January-March 2012 was EUR 0.0 million (operating loss of EUR -4.6
million).
+----------------------------------------------------------+--------+--------+
|CONSOLIDATED INCOME STATEMENT (MEUR) |1-3 2012|1-3 2011|
+----------------------------------------------------------+--------+--------+
| |3 months|3 months|
+----------------------------------------------------------+--------+--------+
|NET SALES | 48.6| 36.5|
+----------------------------------------------------------+--------+--------+
|OPERATING PROFIT (LOSS) | 0.9| -3.9|
+----------------------------------------------------------+--------+--------+
|Financial income and expenses | -0.4| -0.4|
+----------------------------------------------------------+--------+--------+
|RESULT BEFORE TAX | 0.5| -4.3|
+----------------------------------------------------------+--------+--------+
|RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS | 0.3| -4.3|
+----------------------------------------------------------+--------+--------+
|TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 0.3| -4.4|
+----------------------------------------------------------+--------+--------+
| | | |
+----------------------------------------------------------+--------+--------+
|Result for the period attributable to: | | |
+----------------------------------------------------------+--------+--------+
| Equity holders of the parent | 0.2| -4.4|
+----------------------------------------------------------+--------+--------+
| Non-controlling interests | 0.2| 0.1|
+----------------------------------------------------------+--------+--------+
|Total comprehensive income for the period attributable to:| | |
+----------------------------------------------------------+--------+--------+
| Equity holder of the parent | 0.2| -4.5|
+----------------------------------------------------------+--------+--------+
| Non-controlling interests | 0.2| 0.1|
+----------------------------------------------------------+--------+--------+
| | | |
+----------------------------------------------------------+--------+--------+
|Earnings per share from continuing operations, EUR | 0.00| -0.03|
+----------------------------------------------------------+--------+--------+
- Cash flow from operating activities was EUR -0.9 million (EUR 1.4 million).
- Equity ratio was 61.2% (63.6%).
- Net gearing was 5.2% (-9.8%).
QUARTERLY FIGURES
The distribution of the Group's overall net sales and profit, MEUR:
+------------------------------------------------+-----+-----+-----+-----+-----+
| |1Q 12|4Q 11|3Q 11|2Q 11|1Q 11|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Net sales | 48.6| 49.0| 37.0| 39.7| 36.5|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss) | 0.9| 3.5| -3.1| -0.5| -3.9|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss) without non-recurring | 0.9| 3.5| -3.1| -0.5| -3.9|
|costs | | | | | |
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result before taxes | 0.5| 3.8| -3.1| -0.8| -4.3|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result for the period | 0.3| 3.2| -3.1| -0.8| -4.3|
+------------------------------------------------+-----+-----+-----+-----+-----+
Non-recurring items are exceptional gains and costs that are not related to
normal business operations and occur only seldom. These items include capital
gains or losses, significant changes in asset values such as write-downs or
reversals of write-downs, significant restructuring costs, or other items that
the management considers to be non-recurring. When evaluating a non-recurring
item, the euro translation value of the item is considered, and in case of a
change in an asset value, it is measured against the total value of the asset.
The distribution of net sales by Business Segments, MEUR:
+-----------------+-----+-----+-----+-----+-----+
| |1Q 12|4Q 11|3Q 11|2Q 11|1Q 11|
+-----------------+-----+-----+-----+-----+-----+
|Automotive | 28.7| 28.0| 23.9| 22.7| 23.6|
+-----------------+-----+-----+-----+-----+-----+
|Wireless | 20.0| 21.0| 13.0| 17.1| 12.7|
+-----------------+-----+-----+-----+-----+-----+
|Corporation total| 48.6| 49.0| 37.0| 39.7| 36.5|
+-----------------+-----+-----+-----+-----+-----+
The distribution of net sales by market areas, MEUR and %:
+--------+-----+-----+-----+-----+-----+
| |1Q 12|4Q 11|3Q 11|2Q 11|1Q 11|
+--------+-----+-----+-----+-----+-----+
|Asia | 3.5| 5.5| 3.3| 4.0| 2.7|
| | 7.3%|11.2%| 8.8%|10.2%| 7.4%|
+--------+-----+-----+-----+-----+-----+
|Americas| 7.6| 7.6| 4.9| 5.5| 5.1|
| |15.6%|15.5%|13.4%|14.0%|13.9%|
+--------+-----+-----+-----+-----+-----+
|Europe | 37.4| 36.0| 28.8| 30.1| 28.7|
| |77.1%|73.3%|77.8%|75.9%|78.7%|
+--------+-----+-----+-----+-----+-----+
Net sales and operating profit development by Business Segments and other
businesses, MEUR:
+-------------------------------+-----+-----+-----+-----+-----+
| |1Q 12|4Q 11|3Q 11|2Q 11|1Q 11|
+-------------------------------+-----+-----+-----+-----+-----+
|Automotive | | | | | |
|Net sales to external customers| 28.7| 28.0| 23.9| 22.7| 23.6|
|Net sales to other segments | 0.0| 0.0| 0.0| 0.0| 0.0|
|Operating profit (loss) | 0.9| 2.1| -1.4| -0.5| 0.6|
+-------------------------------+-----+-----+-----+-----+-----+
|Wireless | | | | | |
|Net sales to external customers| 19.9| 21.1| 12.9| 16.9| 12.7|
|Net sales to other segments | 0.2| 0.1| 0.1| 0.2| 0.0|
|Operating profit (loss) | -0.0| 1.4| -1.7| 0.1| -4.6|
+-------------------------------+-----+-----+-----+-----+-----+
|Other businesses | | | | | |
|Net sales to external customers| 0.0| 0.0| 0.2| 0.0| 0.1|
|Operating profit (loss) | -0.0| 0.0| -0.1| -0.1| 0.1|
+-------------------------------+-----+-----+-----+-----+-----+
|Total | | | | | |
|Net sales | 48.6| 49.0| 37.0| 39.7| 36.5|
|Operating profit (loss) | 0.9| 3.5| -3.1| -0.5| -3.9|
+-------------------------------+-----+-----+-----+-----+-----+
BUSINESS SEGMENTS' DEVELOPMENT DURING JANUARY-MARCH 2012 AND MARKET OUTLOOK
(Corresponding figures are for January-March 2011 unless otherwise indicated)
EB's reporting is based on two segments which are the Automotive and Wireless
Business Segments.
AUTOMOTIVE
In Automotive Business Segment EB offers software products and R&D services for
carmakers, car electronics suppliers and for other suppliers to the automotive
industry. The offering includes in-car infotainment solutions, such as
navigation and human machine interfaces (HMI), as well as software for
electronic control units (ECU) and driver assistance. By combining its software
products and R&D services, EB is creating unique, customized solutions for the
automotive industry.
During the first quarter of 2012 the net sales of the Automotive Business
Segment amounted to EUR 28.7 million (EUR 23.6 million), representing a solid
growth of 21.5 % year-on-year. The operating profit was EUR 0.9 million (EUR
0.6 million).
EB continued to grow during the first quarter in the infotainment, driver
assistance and ECU (Electronic Control Unit) software markets. EB established a
subsidiary in China, EB Automotive Software (Shanghai) Ltd. The new office
provides the possibility for EB to support a larger customer base in China and
neighboring markets in Central Asia.
Automotive Market Outlook
The demand for EB's products and services is estimated to develop positively
year-on-year during 2012 in Automotive Business Segment. Carmakers continue to
invest in automotive software for new car models and the market for automotive
software products and services is estimated to continue growing.
The move to greater electronic content in cars has been underway for several
years and has been responsible for such major innovations as security systems,
anti-lock brakes, engine control units, driver assistance, and infotainment.
These features have become so enormously popular that they are now widely
available, in both low-end and high-end vehicles, demonstrating that consumers
are willing to pay for technology that enhances their driving experience. As a
result from this and the reduced costs as production volumes ramp up, carmakers
have been steadily integrating more electronic components into vehicles. A
Roland Berger study estimates the share of electronics in cars will grow from
23 per cent in 2010 to 33 per cent until 2020.
The increasingly sophisticated and networked features and growing performance
foster the complexity of automotive electronics. At the same time consumers
expect the same richness of features and user experience they know from the
internet and mobile devices also within the car. These development trends are
driving the industry towards gradual separation of software and hardware in
electronics solutions in order to manage the architectural software layer
appropriately and to aim for efficiency in innovation and implementation. The
use of standard software solutions is expected to increase in the automotive
industry. This enables faster innovation, improves quality and development
efficiency and reduces complexity related to deployment of software.
The fundamental industry migration and consequent growth of the automotive
software market will continue. Cost pressures of the automotive industry are
expected to accelerate the need for productized and efficient software solutions
EB is offering. The estimated annual automotive software market growth rate
until 2018 is expected to exceed the growth rate of passenger car production
volume that is estimated to be 5.6% CAGR (LMC Automotive's Q4 2011 Forecast).
EB's net sales cumulating from the automotive industry is currently primarily
driven by the development of software and software platforms for new cars. Hence
the dependency of EB's net sales on car production volumes is currently limited;
however, the direct dependency on production volumes is expected to increase as
a result of the EB's transition towards software product business models over
the forthcoming years.
WIRELESS
The Wireless Business Segment offers development services and customized
solutions for wireless communications markets, radio channel emulator products
for industries and authorities utilizing wireless technologies, and products and
product platforms for defence and public safety markets.
Net sales of the Wireless Business Segment during the first quarter of 2012 was
EUR 20.0 million (EUR 12.7 million), representing a strong growth of 57.6 %
year-on-year. Operating result was EUR 0.0 million (operating loss of EUR -4.6
million). Net sales grew especially in the defence and public safety markets as
well as in the mobile infrastructure R&D services markets.
EB continued its R&D investments in radio channel emulation products and
products and product platforms targeted for the defence and public safety
markets. EB announced a partnership with Renesas Mobile to provide its EB
Specialized Device Platform with LTE capabilities. EB also announced that Raptor
ID chose EB Specialized Device Platform for its new biometric mobile devices for
the US governmental markets.
EB decided to close down its Wireless Business Segment Espoo Site in Finland in
order to rationalize its operations and improve the cost structure. The
concluded personnel negotiations concerned 25 employees in Espoo office. As an
alternative for termination of employment relationship, all employees have been
offered a position at Company's other sites. Closing of the site may lead to
dismissals of 25 employees at the maximum.
Wireless Market Outlook
Compared to the previous year, the demand for EB's products and services is
estimated to grow year-on-year during 2012 in the Wireless Business Segment.
In the mobile infrastructure market the use of LTE standard, which improves the
performance of radio channel and mobile networks, is expected to continue to
gain strength. EB's business driven by LTE is expected to increase. Mastering of
multi-radio technologies and end-to-end system architectures covering both
terminals and networks has gained importance in the complex wireless technology
industry. Fast implementation of LTE technology and wide radio spectrum
bandwidth needed have increased the demand for EB's service business, and the
demand is expected to stay at the current level.
The market for communications, interference and intelligence solutions targeted
for defence and public authorities is estimated to remain stable. EB's
competence and long experience in software radio based solutions is expected to
bring new business opportunities. The trend of adopting new commercial
technologies, such as LTE and smart phone related software applications, is
expected to continue on special verticals such as public safety. The networks
used by public authorities often utilize dedicated spectrum blocks outside the
commercial frequency bands, which generates the need for special user terminal
variants for these networks.
The smart phone related R&D services market for device manufacturers decreased
strongly during 2011 due to the strategy change of Nokia, and the demand is not
expected to grow during 2012. In the mobile satellite communication industry the
demand for terminals for new data and mobile communications services is expected
to slowly increase during the next few years.
The performance of radio channel is going to increase quickly when introducing
new LTE technologies. This will create demand for advanced test tools during the
next few years. The test tool market is shifting from the performance testing of
LTE base stations to LTE terminals, where increasingly the over-the-air (OTA)
technology will be widely used. EB provides world leading radio channel
emulation tools for the development of MIMO based LTE, LTE-Advanced and other
advanced radio technologies.
RESEARCH AND DEVELOPMENT
EB continued its investments in R&D in the automotive software products and
tools in Automotive Business Segment, and in radio channel emulation products
and products and product platforms for the defence and public safety markets in
Wireless Business Segment.
The total R&D investments during the first quarter of 2012 were EUR 6.2 million
(EUR 6.3 million, 1Q 2011), equaling 12.8% of the net sales (17.3%, 1Q 2011).
The share of R&D investments in Automotive Business Segment was EUR 4.7 million
(EUR 4.4 million, 1Q 2011) and in Wireless Business Segment EUR 1.5 million (EUR
1.9 million, 1Q 2011).
EUR 2.0 million of R&D investments of the reporting period were capitalized (EUR
1.6 million, 1Q 2011). Depreciation of R&D investments were EUR 0.2 million
during the reporting period (EUR 0.4 million, 1Q 2011). The amount of
capitalized R&D investments at the end of March 2012 was EUR 13.2 million. A
significant part of these capitalizations is related to customer agreements of
Automotive Business Segment, where future license fees, based on the actual car
delivery volumes, are expected to accumulate in the coming years.
OUTLOOK FOR 2012
Compared to the previous year, the demand for EB's products and services is
estimated to grow year-on-year during 2012 in both Automotive and Wireless
Business Segments. Carmakers continue to invest in software for new car models
and the market for automotive software products and services is estimated to
continue growing. In Wireless Business Segment the demand growth will be driven
by especially the increasing use of the LTE technology that increases the
performance of mobile networks and the authorities' needs for new communication
solutions that use commercial technologies of smart phones and mobile networks.
EB expects for the year 2012 that net sales and operating result will grow
clearly from the previous year (net sales of EUR 162.2 million, and operating
loss of EUR -4.0 million in 2011). For the first half of 2012 EB expects that
the net sales will grow clearly (EUR 76.1 million in 1H 2011) and operating
result will be positive (EUR -4.4 million in 1H 2011).
The profit outlook for the year 2012 is based on the assumption that there will
be no further bookings of impairments of EB's accounts receivable from TerreStar
Networks Inc. and TerreStar Corporation. It is possible that, based on later
information related to reorganizations of TerreStar Networks and TerreStar
Corporation, this view may need to be reconsidered. Due to the uncertainties
related to the outcome of reorganization processes of TerreStar Networks and
TerreStar Corporation, the credit risk may still grow during 2012. More
specific market outlook is presented under the "Business Segments' development
during January-March 2012 and market outlook" section, and uncertainties
regarding reorganization of TerreStar Networks and TerreStar Corporation, the
amount of the receivables and collecting the receivables as well as other
uncertainties regarding the outlook under "Risks and Uncertainties" section.
Information on TerreStar Networks' and TerreStar Corporation's reorganizations
are presented in the October 20 and 25, November 20 and December 30, 2010,
February 17, 2011, and November 18, 2011 stock exchange releases as well as in
EB's interim reports and financial statement at www.elektrobit.com.
RISKS AND UNCERTAINTIES
EB has identified a number of business, market and finance related risk factors
and uncertainties that can affect the level of sales and profits.
Market risks
On the ongoing financial period the global economic uncertainty may affect the
demand for EB's services, solutions and products and provide pressure on e.g.
pricing. On a short term it may affect, in particular, the utilization and
chargeability levels and average hourly prices of R&D services.
As EB's customer base consists mainly of companies operating in the fields of
automotive and telecommunications and defense and public safety authorities, the
company is exposed to market changes in these industries. EB believes that
expanding the customer base will reduce dependence on individual companies and
that the company will thereby be mainly affected by the general business climate
in automotive and telecommunication industries. The more specific market outlook
is presented under the "Business Segments' development during the first quarter
2012 and market outlook" section.
Business related risks
EB's operative business risks are mainly related to following items:
uncertainties and short visibility on customers' product program decisions,
their make or buy decisions and on the other hand, their decisions to continue,
downsize or terminate current product programs, execution and management of
large customer projects, ramping up and down project resources, availability of
personnel in labour markets (in particular in Germany and Finland), timing and
on the other hand successful utilization of the most important technologies and
components, competitive situation and potential delays in the markets, timely
closing of customer and supplier contracts with reasonable commercial terms,
delays in R&D projects, realization of expected return on capitalized R&D
investments, obsolescence of inventories and technology risks in product
development causing higher than planned R&D costs. Revenues expected to come
from either existing or new products and customers include normal timing risks.
EB has certain significant customer projects and deviation in their expected
continuation could result also significant deviations in the Company's outlook.
In addition there are typical industry warranty and liability risks involved in
selling EB's services, solutions and products.
Product delivery business model includes such risks as high dependency on actual
product volumes and development of the cost of materials. The above-mentioned
risks may manifest themselves as lower amounts product delivery or higher cost
of production, and ultimately, as lower profit.
Some of EB's businesses operate in the industries that are heavily patented and
therefore include risks related to management of intellectual property rights,
on the one hand related to accessibility on commercially acceptable terms of
certain technologies in the EB's products and services, and on the other hand
related to an ability to protect technologies, which EB develops or licenses
from others, from claims that third parties' intellectual property rights are
infringed. Also parties outside of the industries operate actively in order to
protect and commercialize their patents and therefore in their part increase the
risks related to the management of intellectual property rights. At worst,
claims that third parties' intellectual property rights are infringed, could
lead to substantial liabilities for damages. Also EB has been formally requested
by one of its customer for indemnification that is unspecified both in terms of
the grounds and the amount. While the analysis of the situation is pending,
based on preliminary information available it does not seem likely that the
claim would result to a significant liability on a short term. It is possible
that based on later information, the above views may need to be reconsidered.
Financing risks
Global economic uncertainty may lead to payment delays and increase the risk for
credit losses and on the other hand weaken the availability and terms of
financing. To fund its operations, EB relies mainly on income from its operative
business and may from time to time seek additional financing from selected
financial institutions. EB has a binding overdraft credit facility agreement of
EUR 10 million, valid until June 30, 2012. Based on EB's current understanding
extension of the credit facility agreement is likely. However, in case EB would
not be able to extend the credit facility agreement, it would need to secure its
liquidity temporarily by other means.
Some parts of EB's business are more sensitive to customer dependency than
others. Respectively, this may translate as accumulation of risk with respect to
outstanding receivables and ultimately with respect to credit losses. On April
25, 2012, EB has significant receivables from TerreStar amounting to
approximately USD 25.8 million (EUR 19.6 million as per exchange rate of April
25, 2012), which it has claimed in the Chapter 11 cases of both TerreStar
Networks and TerreStar Corporation. In addition to the booked receivables, EB
has also claimed additional costs in the amount of approximately USD 2.1 million
(EUR 1.6 million as per exchange rate of April 25, 2012) and resulting mainly
from the ramp down of the business operations between the parties. Thus, EB has
asserted claims against each of the TerreStar entities in amounts totaling USD
27.9 million (EUR 21.2 million as per exchange rate of April 25, 2012). Due to
uncertainties related to the accounts receivable, EB booked an impairment of the
accounts receivable in the amount of EUR 8.3 million during the second half of
2010.
On October 19, 2010, TerreStar Networks and certain other affiliates of
TerreStar Corporation and on February 16, 2011, the parent company TerreStar
Corporation filed voluntary petitions for reorganization under Chapter 11 of the
United States Bankruptcy Code to strengthen their financial position.
Generally in a Chapter 11 case, any distribution of cash or other assets by a
debtor to satisfy pre-bankruptcy claims of its creditors must be made under a
Chapter 11 plan of reorganization or liquidation. Such plans must be approved by
the United States Bankruptcy Court and (with limited exceptions) an affirmative
vote of all classes of creditors whose claims will not be paid fully and
immediately after the plan is approved by the court and becomes effective by its
terms. Recoveries by holders of claims against TerreStar Networks and TerreStar
Corporation are to be funded by separate pools or streams of assets.
Within the first four months of its Chapter 11 case, TerreStar Networks filed,
then withdrew, a proposed plan of reorganization. Subsequently, on July
7, 2011, the United States Bankruptcy Court approved the sale of substantially
all TerreStar Networks' assets to Gamma Acquisition L.L.C., an acquisition
subsidiary formed by Dish Network Corporation for about USD 1.375 billion. Based
upon filings made by TerreStar Networks with the Bankruptcy Court, USD 1.345
billion of the purchase price has been funded to date, with the remainder of the
purchase price payable at closing, and payments have been made to secured
creditors from the sale proceeds in the amount of about USD 1.128 billion.
However, the sale will not result in an immediate distribution to general
unsecured creditors. Any such distribution must be provided for under a Chapter
11 plan of liquidation that has been filed, voted on and submitted to the court
for approval. On December 6, 2011, TerreStar Networks again filed, and
thereafter amended, a Chapter 11 plan. In its hearing on February 14, 2012 the
Bankruptcy Court approved the TerreStar Networks' second amended plan, which
will provide each holder of an unsecured claim (such as EB) with a pro rata
share of cash available for distribution. Based upon information contained in
the debtors' disclosure statement accompanying the plan, the reorganized
debtors' first post-confirmation status report, or otherwise available to EB, EB
estimates that its pro rata distribution may be in the range of 8-10% of the
face amount of its claim. However, this estimate is subject to various
assumptions, and therefore the amount and timing of EB's distribution cannot be
predicted with certainty at this time. On March 29, 2012 EB received the USD
650,890 distribution on the priority portion of its claim from TerreStar
Networks.
On July 22, 2011, TerreStar Corporation filed a plan of reorganization, which
was thereafter amended on December 27, 2011 and further amended on January
12, 2012. The second amended plan proposes that unsecured claims (such as
EB's), if allowed by the Bankruptcy Court, will be exchanged for new notes to be
issued by a reorganized TerreStar Corporation in the face amount of the claim.
The notes are to be issued as unsecured notes in a total aggregate principal
amount not to exceed USD 35 million, with a seven-year maturity, bearing
interest at the rate of 6% per annum. Payment of the note obligations is to be
funded by future revenues and profits of reorganized TerreStar Corporation. It
is premature to speculate regarding distributions to creditors under this plan
because the plan TerreStar Corporation filed may or may not obtain the necessary
approvals, and the terms of the plan may change through negotiation with
creditors. EB filed a preliminary objection to an earlier version of the plan,
asserting that it failed to satisfy applicable provisions of the Bankruptcy Code
and therefore could not be confirmed. EB has voted against the second amended
plan of TerreStar Corporation and intends to file a further objection to the
proposed plan and vigorously contest confirmation of the plan at a hearing to be
held by the Bankruptcy Court in May, 2012 (on a date to be announced).
As part of the process of reconciling accounts in preparation for making
distributions under a plan, Chapter 11 debtors often challenge the amount or
validity of some creditor claims. On November 16, 2011, after EB filed its
preliminary objection to the proposed Chapter 11 plan of TerreStar Corporation,
two objections to EB's claim were filed, one by TerreStar Corporation and its
affiliated debtors (not including TerreStar Networks) and a joint objection by a
group of holders of TerreStar Corporation preferred stock that support the
proposed plan. The preferred stockholders alleged, among other things, that
EB's guaranty claim in the amount of approximately USD 24.8 million (at least)
should be disallowed pursuant to various legal theories. TerreStar Corporation
joined in the preferred stockholders' argument that TerreStar Corporation has no
liability to EB under its guaranty. On December 12, 2011, EB filed a sworn
opposition to both objections, stating that the objections are flawed as a
matter of law and wholly without evidentiary support, and maintaining its right
to payment in the full amount claimed. It is anticipated that the Bankruptcy
Court will schedule a trial on the merits of EB's claim and the objections on a
date to be announced, within 4-6 weeks following the hearing on confirmation of
the proposed Chapter 11 plan of TerreStar Corporation. EB intends to vigorously
defend such objections to its claims, but speculation regarding the likely
outcome of these contested matters is premature at this time. To date neither
TerreStar Networks nor the liquidating trustee of The TerreStar Networks, Inc.
Liquidating Trust (the trust having been formed in connection with confirmation
of the Chapter 11 plan of TerreStar Networks) has asserted an objection to the
amount or validity of EB's claims in its bankruptcy proceeding, and EB is not
aware that any such objection is contemplated.
Further, as part of the Chapter 11 process, debtors often seek to recover
payments previously made to creditors pursuant to various provisions of the
Bankruptcy Code. The risk that the TerreStar debtors may attempt to recover
payments from EB, or that such recovery actions, if attempted, may be
successful, likewise cannot be ruled out at this time.
Based on EB's current understanding, there is no reason to believe that there
would be further impairment losses on EB's account receivable from TerreStar
Networks and TerreStar Corporation. EB aims to collect the amounts owed to it in
full through the Chapter 11 cases of TerreStar Networks and TerreStar
Corporation, and/or for example through selling of the earlier mentioned
accounts receivable. It is possible that based on later information related to
the TerreStar Networks and TerreStar Corporation's Chapter 11 cases, the above
views may need to be reconsidered. Despite the TerreStar companies' efforts to
reorganize, it is possible that the credit risk may still grow during 2012.
Should the accounts receivable not be collected at all, either from TerreStar
Networks or TerreStar Corporation, an impairment loss and costs related to the
collection process would additionally lower EB's operating result on a non-
recurring basis by approximately EUR 10 million, at maximum (USD-nominated items
as per exchange rate of April 25, 2012). However, this would not have any
significant negative effect on the EB's cash flow.
More information on the risks and uncertainties affecting EB can be found on the
Company's website at www.elektrobit.com.
STATEMENT OF FINANCIAL POSITION AND FINANCING
The figures presented in the statement of financial position of March 31, 2012,
are compared with the statement of the financial position of December 31, 2011
(MEUR). The figures for the period under review contain provision of EUR 1.4
million.
3/2012 12/2011
Non-current assets 46.0 44.1
Current assets 71.4 71.0
Total assets 117.4 115.1
Share capital 12.9 12.9
Other equity 52.9 52.6
Non-controlling interests 1.7 1.5
Total shareholders' equity 67.5 67.0
Non-current liabilities 6.7 6.9
Current liabilities 43.2 41.3
Total shareholders' equity and liabilities 117.4 115.1
Net cash flow from operations during the period under review:
+ net profit +/- adjustment of accrual basis items EUR +2.6 million
+/- change in net working capital EUR -2.9 million
- interest, taxes and dividends EUR -0.5 million
= cash generated from operations EUR -0.9 million
- net cash used in investment activities EUR -2.5 million
- net cash used in financing EUR +0.7 million
= net change in cash and cash equivalents EUR -2.7 million
The amount of accounts and other receivables, booked in current receivables, was
EUR 62.1 million (EUR 59.3 million on December 31. 2011). Accounts and other
payables, booked in interest-free current liabilities, were EUR 36.1 million
(EUR 36.3 million on December 31. 2011). The amount of non-depreciated
consolidation goodwill at the end of the period under review was EUR 19.3
million (EUR 19.3 million on December 31. 2011).
The amount of gross investments in the period under review was EUR 3.6 million
including R&D capitalizations of EUR 2.0 million. Net investments for the
reporting period totaled EUR 3.6 million. The total amount of depreciation
during the period under review was EUR 1.7 million, including EUR 0.3 million of
depreciation owing to business acquisitions.
The amount of interest-bearing debt at the end of the reporting period was EUR
10.8 million. The distribution of net financing expenses on the income statement
was as follows:
interest dividend and other financial income EUR 0.0 million
interest expenses and other financial expenses EUR -0.1 million
foreign exchange gains and losses EUR -0.2 million
EB's equity ratio at the end of the period was 61.2% (62.8% at the end of 2011).
Cash and other liquid assets at the end of the reporting period were EUR 7.3
million. EB has a binding overdraft credit facility agreement of EUR 10 million,
valid until mid 2012. EUR 1.1 million of this facility was used at the end of
the reporting period.
EB follows a hedging strategy, the objective of which is to ensure the margins
of business operations in changing market circumstances by minimizing the
influence of exchange rates. In accordance with the hedging strategy, the agreed
customer commitments net cash flow of the currency in question is hedged. The
net cash flow is determined on the basis of sales receivables, payables, the
order book and the budgeted net currency cash flow. The hedged foreign currency
exposure at the end of the review period was equivalent to EUR 8.0 million.
PERSONNEL
EB employed an average of 1628 people between January and March 2012. At the end
of March, EB had 1638 employees (1607 at the end of 2011). A significant part of
EB's personnel are product development engineers.
FLAGGING NOTIFICATIONS
There were no changes in ownership during the period under review that would
have caused flagging notifications which are obligations for disclosure in
accordance with Chapter 2, section 9 of the Securities Market Act.
EVENTS AFTER THE REVIEW PERIOD
The company has no significant events subsequent to the reporting period.
RESOLUTIONS MADE BY THE ANNUAL GENERAL MEETING
The Annual General Meeting held on March 26, 2012 decided on the following
topics:
BOARD OF DIRECTORS AND AUDITOR
The Annual General Meeting decided that the Board of Directors shall comprise
five (5) members. Mr. Jorma Halonen, Mr. Juha Hulkko, Mr. Seppo Laine, Mr.
Staffan Simberg and Mr. Erkki Veikkolainen were elected members of the Board of
Directors for a term of office expiring at the end of the next Annual General
Meeting.
At its assembly meeting held on March 26, 2012, the Board of Directors elected
Mr. Seppo Laine Chairman of the Board. Further, the Board resolved to keep the
Audit and Financial Committee with Mr. Staffan Simberg (Chairman of the
committee) and Mr. Seppo Laine as committee members.
Ernst & Young Ltd, authorized public accountants, was re-elected auditor of the
Company for a term of office ending at the end of the next Annual General
Meeting. Ernst & Young Ltd notified that Mr. Jari Karppinen, authorized public
accountant, will act as responsible auditor.
AUTHORIZING THE BOARD OF DIRECTORS TO DECIDE ON THE REPURCHASE OF THE COMPANY'S
OWN SHARES
The General Meeting authorized the Board of Directors to decide on the
repurchase of the Company's own shares as follows.
The amount of own shares to be repurchased shall not exceed 12,500,000 shares,
which corresponds to approximately 9.66 per cent of all of the shares in the
company. Only the unrestricted equity of the company can be used to repurchase
own shares on the basis of the authorization. Own shares can be repurchased at a
price formed in public trading on the date of the repurchase or otherwise at a
price formed on the market. The Board of Directors decides how own shares will
be repurchased. Own shares can be repurchased using, inter alia, derivatives.
Own shares can be repurchased otherwise than in proportion to the shareholdings
of the shareholders (directed repurchase). The authorization cancels the
authorization given by the General Meeting on March 31, 2011 to decide on the
repurchase of the company's own shares. The authorization is effective until
June 30, 2013.
AUTHORIZING THE BOARD OF DIRECTORS TO DECIDE ON THE ISSUANCE OF SHARES AS WELL
AS THE ISSUANCE OF SPECIAL RIGHTS ENTITLING TO SHARES
The General meeting authorized the Board of Directors to decide on the issuance
of shares and other special rights entitling to shares referred to in chapter
10 section 1 of the Companies Act as follows.
The amount of shares to be issued shall not exceed 25,000,000 shares, which
corresponds to approximately 19.32 per cent of all of the shares in the company.
The Board of Directors decides on all the conditions of the issuance of shares
and of special rights entitling to shares. The authorization concerns both the
issuance of new shares as well as the transfer of treasury shares. The issuance
of shares and of special rights entitling to shares may be carried out in
deviation from the shareholders' pre-emptive rights (directed issue). The
authorization cancels the authorization given by the General Meeting on March
31, 2011 to decide on the issuance of shares as well as the issuance of other
special rights entitling to shares referred to in Chapter 10 Section 1 of the
Companies Act. The authorization is effective until June 30, 2013.
USE OF THE PROFITS SHOWN ON THE BALANCE SHEET AND PAYMENT OF DIVIDEND
The General meeting decided in accordance with the proposal of the Board of
Directors that no dividend shall be distributed.
Oulu, April 26, 2012
EB, Elektrobit Corporation
The Board of Directors
Further Information:
Jukka Harju
CEO
Tel. +358 40 344 5466
Distribution:
NASDAQ OMX Helsinki
Major media
EB, ELEKTROBIT CORPORATION,
CONDENSED FINANCIAL STATEMENTS AND NOTES JANUARY- MARCH 2012
(unaudited)
The Interim Report has been prepared in accordance with IAS 34 Interim Financial
Reporting.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1-3/2012 1-3/2011 1-12/2011
(MEUR)
3 months 3 months 12 months
NET SALES 48.6 36.5 162.2
Other operating income 0.6 0.7 2.8
Change in work in progress and finished goods -0.2 0.2 0.0
Work performed by the undertaking for its own
purpose
and capitalized 0.0 0.1 0.4
Raw materials -3.2 -2.8 -11.7
Personnel expenses -27.1 -24.3 -95.2
Depreciation -1.7 -2.4 -8.7
Other operating expenses -16.1 -11.9 -53.8
OPERATING PROFIT (LOSS) 0.9 -3.9 -4.0
Financial income and expenses -0.4 -0.4 -0.4
RESULT BEFORE TAXES 0.5 -4.3 -4.5
Income taxes -0.1 0.0 -0.6
RESULT FOR THE PERIOD FROM CONTINUING
OPERATIONS 0.3 -4.3 -5.1
Other comprehensive income:
Exchange differences on translating foreign
operations 0.0 -0.0 -0.2
Other comprehensive income for the period
total 0.0 -0.0 -0.2
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 0.3 -4.4 -5.2
Result for the period attributable to
Equity holders of the parent 0.2 -4.4 -5.3
Non-controlling interests 0.2 0.1 0.2
Total comprehensive income attributable to
Equity holders of the parent 0.2 -4.5 -5.5
Non-controlling interests 0.2 0.1 0.2
Earnings per share EUR continuing operations
Basic earnings per share 0.00 -0.03 -0.04
Diluted earnings per share 0.00 -0.03 -0.04
Average number of shares, 1000 pcs 129 413 129 413 129 413
Average number of shares, diluted, 1000 pcs 130 228 130 209 130 051
CONSOLIDATED STATEMENT OF FINANCIAL POSITION March. 31, March. 31, Dec. 31,
(MEUR) 2012 2011 2011
ASSETS
Non-current assets
Property, plant and equipment 9.3 9.8 9.0
Goodwill 19.3 18.5 19.3
Intangible assets 17.2 12.2 15.7
Other financial assets 0.1 0.1 0.1
Receivables 0.3
Deferred tax assets 0.1 0.1 0.1
Non-current assets total 46.0 40.9 44.1
Current assets
Inventories 2.0 1.6 1.8
Trade and other receivables 62.1 52.2 59.3
Financial assets at fair value through
profit or loss 0.1 6.2
Cash and short term deposits 7.3 12.4 10.0
Current assets total 71.4 72.4 71.0
TOTAL ASSETS 117.4 113.4 115.1
EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent
Share capital 12.9 12.9 12.9
Invested non-restricted equity fund 38.7 38.7 38.7
Translation difference 0.5 0.6 0.4
Retained earnings 13.7 13.9 13.4
Non-controlling interests 1.7 1.3 1.5
Total equity 67.5 67.5 67.0
Non-current liabilities
Deferred tax liabilities 0.9 1.3 1.0
Pension obligations 1.3 1.2 1.3
Provisions 0.7 0.9 0.5
Interest-bearing liabilities 3.7 7.2 4.0
Non-current liabilities total 6.7 10.6 6.9
Current liabilities
Trade and other payables 35.5 29.0 34.9
Financial liabilities at fair value through
profit or loss 0.3
Provisions 0.7 2.0 1.0
Interest-bearing loans and borrowings 7.1 4.3 5.0
Current liabilities total 43.2 35.3 41.3
Total liabilities 49.9 45.9 48.1
TOTAL EQUITY AND LIABILITIES 117.4 113.4 115.1
CONSOLIDATED STATEMENT OF CASH FLOWS (MEUR) 1-3/2012 1-3/2011 1-12/2011
3 months 3 months 12 months
CASH FLOW FROM OPERATING ACTIVITIES
Result for the period 0.3 -4.3 -5.1
Adjustment of accrual basis items 2.2 2.3 7.1
Change in net working capital -2.9 2.7 0.6
Interest paid on operating activities -0.4 -0.9 -0.4
Interest received from operating activities 0.0 0.0 0.3
Other financial income and expenses, net received 0.0
Income taxes paid -0.1 1.7 2.6
NET CASH FROM OPERATING ACTIVITIES -0.9 1.4 5.3
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of business unit, net of cash acquired -0.8
Purchase of property, plant and equipment -0.5 -0.6 -1.9
Purchase of intangible assets -2.1 -1.7 -8.5
Purchase of other investments -0.0 -0.0
Sale of property, plant and equipment 0.0 0.1 0.1
Sale of intangible assets 0.1
Proceeds from sale of investments 0.0 0.0
NET CASH FROM INVESTING ACTIVITIES -2.5 -2.3 -11.1
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from borrowing 2.4 0.2 0.2
Repayment of borrowing -1.0 -1.0 -2.2
Payment of finance liabilities -0.7 -0.8 -2.8
NET CASH FROM FINANCING ACTIVITIES 0.7 -1.6 -4.7
NET CHANGE IN CASH AND CASH EQUIVALENTS -2.7 -2.4 -10.6
Cash and cash equivalents at beginning of period 10.0 20.5 20.5
Cash and cash equivalents at end of period 7.3 18.1 10.0
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (MEUR)
A = Share capital
B = Invested non-restricted equity fund
C = Retained earnings
D = Non-controlling interests
E = Total equity
A B C D E
Equity on January 1, 2011 12.9 38.7 18.9 1.3 71.8
Share-related compensation 0.1 0.1
Total comprehensive income for the period -4.5 0.1 -4.4
Other items -0.0 -0.0
Equity on March 31, 2011 12.9 38.7 14.5 1.3 67.5
Equity on January 1, 2012 12.9 38.7 13.9 1.5 67.0
Share-related compensation 0.2 0.2
Total comprehensive income for the period 0.2 0.2 0.3
Other items -0.0 -0.0
Equity on March 31, 2012 12.9 38.7 14.2 1.7 67.5
NOTES TO THE INTERIM FINANCIAL REPORTING
Accounting principles for the interim financial reporting:
The same accounting policies and methods of computation are followed in the
interim financial reporting as compared with annual financial statements.
Explanatory comments about the seasonality or cyclicality of reporting period
operations:
The Company operates in business areas which are subject to seasonal
fluctuations.
Payment of dividend:
The General Meeting held on March 26, 2012 decided in accordance with the
proposal of the Board of Directors that no dividend shall be distributed.
SEGMENT INFORMATION (MEUR)
OPERATING SEGMENTS 1-3/2012 1-3/2011 1-12/2011
3 months 3 months 12 months
Automotive
Net sales to external customers 28.7 23.6 98.3
Net sales to other segments 0.0 0.0 0.0
Net sales total 28.7 23.6 98.3
Operating profit (loss) 0.9 0.6 0.8
Wireless
Net sales to external customers 19.9 12.7 63.6
Net sales to other segments 0.2 0.0 0.4
Net sales total 20.0 12.7 63.9
Operating profit (loss) -0.0 -4.6 -4.7
OTHER ITEMS
Other items
Net sales to external customers 0.0 0.1 0.4
Operating profit (loss) -0.0 0.1 -0.1
Eliminations
Net sales to other segments -0.2 -0.0 -0.4
Operating profit (loss) 0.0 0.0 0.0
Group total
Net sales to external customers 48.6 36.5 162.2
Operating profit (loss) 0.9 -3.9 -4.0
Net sales of geographical areas (MEUR) 1-3/2012 1-3/2011 1-12/2011
3 months 3 months 12 months
Net sales
Europe 37.4 28.7 123.5
Americas 7.6 5.1 23.2
Asia 3.5 2.7 15.5
Net sales total 48.6 36.5 162.2
Material events subsequent to the end of the interim period not reflected in the
financial statements for the interim period:
There are no such material events subsequent to the end of the interim report
period that have not been reflected in this report.
Related party transactions: 1-3/2012 1-3/2011 1-12/2011
3 months 3 months 12 months
Employee benefits for key management and stock
option expenses total 0.3 0.4 1.6
CONSOLIDATED STATEMENT OF 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
COMPREHENSIVE INCOME 2012 2011 2011 2011 2011
BY QUARTER (MEUR) 3 months 3 months 3 months 3 months 3 months
NET SALES 48.6 49.0 37.0 39.7 36.5
Other operating income 0.6 0.8 0.5 0.9 0.7
Change in work in progress and
finished goods -0.2 -0.3 0.1 0.1 0.2
Work performed by the
undertaking
for its own purpose and
capitalized 0.0 0.4 0.0 0.0 0.1
Raw materials -3.2 -3.1 -2.9 -3.0 -2.8
Personnel expenses -27.1 -25.2 -22.5 -23.3 -24.3
Depreciation -1.7 -1.8 -1.9 -2.7 -2.4
Other operating expenses -16.1 -16.3 -13.4 -12.2 -11.9
OPERATING PROFIT (LOSS) 0.9 3.5 -3.1 -0.5 -3.9
Financial income and expenses -0.4 0.3 0.0 -0.3 -0.4
RESULT BEFORE TAXES 0.5 3.8 -3.1 -0.8 -4.3
Income taxes -0.1 -0.6 0.0 -0.0 0.0
RESULT FOR THE PERIOD FROM
CONTINUING OPERATIONS 0.3 3.2 -3.1 -0.8 -4.3
Other comprehensive income
for the period total 0.0 0.0 -0.1 -0.0 -0.0
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 0.3 3.2 -3.2 -0.9 -4.4
Result for the period
attributable to:
Equity holders of the parent 0.2 3.1 -3.1 -0.8 -4.4
Non-controlling interests 0.2 0.1 0.0 0.0 0.1
Total comprehensive income
for the period attributable
to:
Equity holders of the parent 0.2 3.1 -3.2 -0.9 -4.5
Non-controlling interests 0.2 0.1 0.0 0.0 0.1
CONSOLIDATED STATEMENT OF March 31, Dec. 31, Sept. 30, June 30, March 31,
FINANCIAL POSITION (MEUR) 2012 2011 2011 2011 2011
ASSETS
Non-current assets
Property, plant and
equipment 9.3 9.0 8.4 9.2 9.8
Goodwill 19.3 19.3 19.2 18.5 18.5
Intangible assets 17.2 15.7 14.3 13.4 12.2
Other financial assets 0.1 0.1 0.1 0.1 0.1
Receivables 0.3
Deferred tax assets 0.1 0.1 0.1 0.1 0.1
Non-current assets total 46.0 44.1 42.1 41.3 40.9
Current assets
Inventories 2.0 1.8 2.1 2.2 1.6
Trade and other receivables 62.1 59.3 54.7 47.0 52.2
Financial assets at fair
value
through profit or loss 0.1 0.0 6.2
Cash and short term deposits 7.3 10.0 7.2 17.8 12.4
Current assets total 71.4 71.0 64.0 67.0 72.4
TOTAL ASSETS 117.4 115.1 106.1 108.3 113.4
EQUITY AND LIABILITIES
Equity attributable to equity
holders
of the parent
Share capital 12.9 12.9 12.9 12.9 12.9
Invested non-restricted
equity fund 38.7 38.7 38.7 38.7 38.7
Translation difference 0.5 0.4 0.4 0.5 0.6
Retained earnings 13.7 13.4 10.2 12.3 13.9
Non-controlling interests 1.7 1.5 1.4 1.4 1.3
Total equity 67.5 67.0 63.6 65.9 67.5
Non-current liabilities
Deferred tax liabilities 0.9 1.0 1.1 1.2 1.3
Pension obligations 1.3 1.3 1.3 1.2 1.2
Provisions 0.7 0.5 0.6 0.8 0.9
Interest-bearing liabilities 3.7 4.0 4.3 5.9 7.2
Non-current liabilities total 6.7 6.9 7.3 9.1 10.6
Current liabilities
Trade and other payables 35.5 34.9 29.1 27.6 29.0
Financial liabilities at
fair value
through profit or loss 0.3 0.5
Provisions 0.7 1.0 0.7 0.7 2.0
Interest-bearing loans and
borrowings (non-current) 7.1 5.0 4.9 5.0 4.3
Current liabilities total 43.2 41.3 35.2 33.3 35.3
Total liabilities 49.9 48.1 42.5 42.4 45.9
TOTAL EQUITY AND LIABILITIES 117.4 115.1 106.1 108.3 113.4
1-3/ 10-12/ 7-9/ 4-6/ 1-3/
CONSOLIDATED STATEMENT
OF CASH FLOWS BY QUARTER 2012 2011 2011 2011 2011
3 months 3 months 3 months 3 months 3 months
Net cash from operating
activities -0.9 7.1 -6.6 3.4 1.4
Net cash from investing
activities -2.5 -3.7 -2.3 -2.8 -2.3
Net cash from financing
activities 0.7 -0.6 -1.7 -0.8 -1.6
Net change in cash and cash
equivalents -2.7 2.7 -10.6 -0.3 -2.4
FINANCIAL PERFORMANCE RELATED RATIOS 1-3/2012 1-3/2011 1-12/2011 3 months 3 months 12 months
STATEMENT OF COMPREHENSIVE INCOME (MEUR)
Net sales 48.6 36.5 162.2
Operating profit (loss) 0.9 -3.9 -4.0
Operating profit (loss), % of net sales 1,8 -10,8 -2.5
Result before taxes 0.5 -4.3 -4.5
Result before taxes, % of net sales 1,0 -11,9 -2.8
Result for the period 0.3 -4.3 -5.1
PROFITABILITY AND OTHER KEY FIGURES
Interest-bearing net liabilities, (MEUR) 3.5 -6.6 -0.9
Net gearing, -% 5.2 -9.8 -1.4
Equity ratio, % 61.2 63.6 62.8
Gross investments, (MEUR) 3.6 2.4 12.4
Average personnel during the period 1628 1545 1553
Personnel at the period end 1638 1549 1607
AMOUNT OF SHARE ISSUE ADJUSTMENT March 31, March 31, Dec. 31,
(1,000 pcs) 2012 2011 2011
At the end of period 129 413 129 413 129 413
Average for the period 129 413 129 413 129 413
Average for the period diluted with stock
options 130 228 130 209 130 051
1-3/2012 1-3/2011 1-12/2011
STOCK-RELATED FINANCIAL RATIOS (EUR)
3 months 3 months 12 months
Basic earnings per share 0.00 -0.03 -0.04
Diluted earnings per share 0.00 -0.03 -0.04
Equity *) per share 0.51 0.51 0.51
*) Equity attributable to equity holders of
the parent
MARKET VALUES OF SHARES (EUR) 1-3/2012 1-3/2011 1-12/2011
3 months 3 months 12 months
Highest 0.79 0.76 0.76
Lowest 0.38 0.61 0.36
Average 0.62 0.71 0.55
At the end of period 0.68 0.62 0.38
Market value of the stock, (MEUR) 88.0 80.2 49.2
Trading value of shares, (MEUR) 3.0 1.6 5.0
Number of shares traded, (1,000 pcs) 4 898 2 246 9 169
Related to average number of shares % 3.8 1.7 7.1
SECURITIES AND CONTINGENT LIABILITIES March 31, March 31, Dec. 31,
(MEUR) 2012 2011 2011
AGAINST OWN LIABILITIES
Floating charges 11.4 3.1 11.4
Guarantees 23.4 15.5 22.7
Rental liabilities
Falling due in the next year 7.1 4.5 6.9
Falling due after one year 17.3 15.9 17.9
Other contractual liabilities
Falling due in the next year 2.1 3.5 2.5
Falling due after one year 2.0
Mortgages are pledged for liabilities totalled 5.8 5.5 4.3
NOMINAL VALUE OF CURRENCY DERIVATIVES March 31, March 31, Dec. 31,
(MEUR) 2012 2011 2011
Foreign exchange forward contracts
Market value -0.0 0.4 -0.3
Nominal value 4.0 7.0 5.5
Purchased currency options
Market value 0.1 0.2 0.1
Nominal value 4.0 7.0 4.3
Sold currency options
Market value -0.0 -0.0 -0.1
Nominal value 8.0 7.0 8.6
[HUG#1606160]
© 2024 Nasdaq, Inc. All Rights Reserved |