2009-02-13 07:00:00 CET
2009-02-13 07:01:08 CET
REGULATED INFORMATION
Elektrobit Oyj - Financial Statement Release
EB, ELEKTROBIT CORPORATION, FINANCIAL STATEMENT BULLETIN 2008
STOCK EXCHANGE RELEASE
Free for publication on February 13, 2009 at 8.00 am (CET+1)
EB, ELEKTROBIT CORPORATION, FINANCIAL STATEMENT BULLETIN 2008
SUMMARY 4Q 2008
- Net sales amounted to EUR 49.5 million (EUR 44.6 million, 4Q 2007),
representing an 11.1 per cent increase year-on-year.
- Operating loss from business operations amounted to EUR -2.8
million and the non-recurring restructuring costs and write-offs
totaled to EUR -5.7 million, resulting in a total operating loss of
EUR -8.5 million (EUR -2.4 million, 4Q 2007).
- Operating loss from business operations shows clear improvement
sequentially from EUR -11.3 million (3Q 2008) to EUR -2.8 million (4Q
2008).
- Operating cash flow amounted to EUR -0.5 million (EUR -8.6 million,
4Q 2007). The net cash flow amounted to EUR 1.4 million (EUR -10.8
million, 4Q 2007).
- Equity ratio remained at a high level of 64.9% (70.9%, 4Q 2007).
- Earnings per share were EUR -0.11 (EUR -0.03, 4Q 2007).
EB's profit improvement and cost structure adjustment program
launched in fourth quarter 2008 is targeting in total for EUR 40
million annual cost savings in comparison to the cost level of the
first half of 2008.
As a part of the profit improvement program EB announced October 1st
a change of the business model in the Mobile WiMAX by shifting from
investing upfront in the development of radio base station module
products to the development of customer-financed WiMAX solutions. The
change of business model reduces significantly EB's own R&D
investment going forward, while maintaining the opportunity to
develop and implement demanding Mobile WiMAX solutions for customers.
EB'S CEO PERTTI KORHONEN:"EB was able to improve profitability by reducing the operational
losses from business operations EUR -11.3 million in third quarter of
2008 to EUR -2.8 million in the fourth quarter of 2008. Going forward
we continue to focus on profitability improvement as our first
priority while continuing to invest in the future opportunities in a
sustainable manner."
FINANCIAL PERFORMANCE DURING JANUARY - DECEMBER 2008
(Comparisons are given to January-December 2007, unless otherwise
indicated)
EB's net sales during January - December 2008 increased 19.4 per cent
to EUR 172.3 million, compared with EUR 144.3 million in January -
December 2007. Operating loss from Business Operations amounted to
EUR -29.1 million and the non-recurring restructuring costs,
write-offs and bad debt reserves totaled to EUR -13.6 million,
resulting in a total operating loss of EUR -42.7 million (EUR -20.3
million).
The non-recurring costs of EUR 13.6 million consist of:
- restructuring costs of EUR 2.9 million, as announced in March, due
to the rearrangements in the Wireless Business Segment and a capital
loss and a write-off from the sale of the shares of the Swiss
subsidiary, Elektrobit AG,
- a write-off of EUR 2.8 million, as announced in June, due to review
of EB's goodwill valuations of the RFID reader system business
belonging to the Wireless Business Segment,
- a write-off of EUR 0.6 million of an activated R&D investment,
- restructuring cost of EUR 0.6 million due to the rearrangements in
support functions,
- a bad debt reserve of EUR 1.0 million,
- restructuring costs of EUR 5.0 million as announced in November,
due to the rearrangement in the Automotive Business Segment EUR 0.8
million, in the Wireless Business Segment EUR 3.6 million and in
support functions EUR 0.6 million,
- a write-off of EUR 0.7 million of software licences.
The Automotive Business Segment continued on its solid growth path
with net sales during January - December 2008 of EUR 63.3 million
(EUR 52.6 million) representing a growth of 20.3 per cent compared to
January - December 2007. The net sales growth was thanks to
increasingly competitive EB product offering both in Infotainment
software solutions (HMI and navigation) as well as in ECU software
solutions (basic software and tooling), which led to solidifying
position among current customers as well as winning new customers.
Also the investments into global operations started to contribute to
the business growth outside of Germany.
The operating loss from Automotive Business Operations amounted to
EUR -10.3 million and the aforementioned bad debt reserve of EUR 1.0
million and restructuring costs of EUR 0.8 million, resulting to
total operating loss of EUR -12.1 million (EUR 0.7 million). This has
been caused by weaker than planned profitability of some large
customer projects, continued long-term investments into leading
automotive Infotainment and ECU software products, and expansion of
the geographical footprint and business development in France, USA,
Japan and China. Through these ongoing investments, EB is executing
its strategy in Automotive Segment and building the fundaments to
play globally as a leading automotive software partner for automotive
OEMs and their vendors.
The Wireless Business Segment's net sales during January - December
2008 amounted to EUR 108.6 million (EUR 90.9 million), representing a
growth of 19.5 per cent compared to January - December 2007. The
growth was achieved both by developing the business with existing
long-term customers and by changing the WiMAX business model from
asset development to customer financed model, which started to create
revenue during the fourth quarter. The net sales included
extraordinary low-margin through-licensing revenues of approximately
EUR 3 million. The operating loss from Business Operations amounted
to EUR -17.5 million and the aforementioned write-offs and
restructuring costs totaling to EUR -11.0 million, resulting to a
total operating loss of EUR -28.5 million (EUR -22.8 million)
reflecting:
- significant and larger than originally anticipated investments in
the R&D of Mobile WiMAX base station module products until end of 3Q,
- he delay of the accumulation of net sales of WiMAX base station
module products until end of 3Q,
- apid deceleration of the market and therefore the sales of wireless
communications emulation and design tools during the 2Q and 3Q,
- weaker demand and stronger than expected price competition in radio
network solutions' R&D services in the first half of 2008,
- heavy investment and lack of demand in RFID reader systems,
- slower than expected demand in mobile terminals R&D services in the
third quarter of 2008.
The total R&D investments during the reporting period were EUR 37.9
million (EUR 38.3 million), equaling 22.0 per cent of the net sales
(26.6 % in 2007). During the second half of 2008 EB has adjusted its
R&D investments to a more sustainable level.
CONSOLIDATED INCOME STATEMENT (MEUR) 1-12 2008 1-12 2007
12 months 12 months
NET SALES 172.3 144.3
OPERATING PROFIT (LOSS) -42.7 -20.3
Financial income and expenses -4.7 0.3
PROFIT BEFORE TAX -47.4 -20.0
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS -49.8 -20.0
Profit after tax for the year from discontinued 0.3
operations 13.1
PROFIT FOR THE YEAR -49.5 -6.9
Attributable to
Equity holders of the parent -49.5 -6.9
Minority interest 0.0 0.0
Earnings per share EUR continuing operations -0.38 -0.15
Earnings per share EUR discontinued operations 0.00 0.10
Earnings per share EUR continuing and -0.38
discontinued operations -0.05
- Cash flow from Business Operations amounted to EUR -24.7 million
(EUR -27.1 million).
- Equity ratio was 64.9% (70.9%).
- Net gearing was -40.2% (-24.0%).
QUARTERLY FIGURES
The quarterly distribution of the Group's overall net sales and
profit, MEUR:
+-------------------------------------------------------------------+
| | 4Q 08 | 3Q 08 | 2Q 08 | 1Q 08 | 4Q 07 |
|---------------------------+-------+-------+-------+-------+-------|
| Net sales | 49.5 | 34.5 | 41.0 | 47.3 | 44.6 |
|---------------------------+-------+-------+-------+-------+-------|
| Operating profit (loss) | -8.5 | -12.9 | -13.3 | -8.0 | -2.4 |
|---------------------------+-------+-------+-------+-------+-------|
| Operating profit (loss) | -2.8 | -11.3 | -9.9 | -5.1 | -3.9 |
| without non-recurring | | | | | |
| costs | | | | | |
|---------------------------+-------+-------+-------+-------+-------|
| Result before taxes | -11.8 | -14.4 | -13.6 | -7.7 | -3.3 |
|---------------------------+-------+-------+-------+-------+-------|
| Result for the period | -14.0 | -14.6 | -13.5 | -7.7 | -3.3 |
+-------------------------------------------------------------------+
The distribution of the net sales by Business Segment, MEUR:
+-----------------------------------------------------------+
| | 4Q 08 | 3Q 08 | 2Q 08 | 1Q 08 | 4Q 07 |
|-------------------+-------+-------+-------+-------+-------|
| Automotive | 18.7 | 15.9 | 13.2 | 15.5 | 16.2 |
|-------------------+-------+-------+-------+-------+-------|
| Wireless | 30.7 | 18.5 | 27.7 | 31.7 | 28.2 |
|-------------------+-------+-------+-------+-------+-------|
| Corporation total | 49.5 | 34.5 | 41.0 | 47.3 | 44.6 |
+-----------------------------------------------------------+
The distribution of the net sales by market area, MEUR and %:
+--------------------------------------------------+
| | 4Q 08 | 3Q 08 | 2Q 08 | 1Q 08 | 4Q 07 |
|----------+-------+-------+-------+-------+-------|
| Asia | 3.1 | 0.9 | 2.1 | 2.0 | 2.0 |
| | 6.2% | 2.6% | 5.2% | 4.3% | 4.5% |
|----------+-------+-------+-------+-------+-------|
| Americas | 10.9 | 7.1 | 12.7 | 18.5 | 14.5 |
| | 22.0% | 20.7% | 31.0% | 39.2% | 32.5% |
|----------+-------+-------+-------+-------+-------|
| Europe | 35.5 | 26.4 | 26.2 | 26.8 | 28.1 |
| | 71.8% | 76.7% | 63.8% | 56.5% | 63.0% |
+--------------------------------------------------+
Net sales (external) and operating profit development by Business
Segments and Other businesses were as follows, MEUR:
+-----------------------------------------------------------------+
| | 4Q 08 | 3Q 08 | 2Q 08 | 1Q 08 | 4Q 07 |
|-------------------------+-------+-------+-------+-------+-------|
| Automotive | | | | | |
| Net sales | 18.7 | 15.9 | 13.2 | 15.5 | 16.2 |
| Operating profit (loss) | -2.3 | -4.1 | -4.1 | -1.6 | 1.0 |
|-------------------------+-------+-------+-------+-------+-------|
| Wireless | | | | | |
| Net sales | 30.7 | 18.5 | 27.7 | 31.7 | 28.2 |
| Operating profit (loss) | -4.9 | -8.1 | -9.1 | -6.5 | -4.1 |
|-------------------------+-------+-------+-------+-------+-------|
| Other businesses | | | | | |
| Net sales | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| Operating profit (loss) | -1.3 | -0.7 | -0.2 | 0.1 | 0.7 |
|-------------------------+-------+-------+-------+-------+-------|
| Total | | | | | |
| Net sales | 49.5 | 34.5 | 41.0 | 47.3 | 44.6 |
| Operating profit (loss) | -8.5 | -12.9 | -13.3 | -8.0 | -2.4 |
+-----------------------------------------------------------------+
BUSINESS SEGMENTS' MAIN EVENTS DURING 4Q 2008
EB's reporting as from January 1, 2008 is based on the Automotive and
Wireless Business Segments.
AUTOMOTIVE
The Automotive Business Segment consists of in-car software products
and tooling, navigation software for after market devices (PND,
personal navigation devices) and R&D services for the automotive
industry with leading car manufacturers (OEMs), car electronics
suppliers (Tier1s) and automotive chipset suppliers (Tier2s) as
customers. By combining its software products, tooling and
engineering services EB is creating for its automotive customers
unique, customized solutions.
During the fourth quarter, the net sales of the Automotive Business
Segment amounted to EUR 18.7 million (EUR 16.2 million, 4Q 2007),
which represents a year-on-year growth of 15.2 per cent. The
operating loss, including non-recurring costs of EUR 0.8 million, was
EUR -2.3 million (EUR 1.0 million, 4Q 2007). The loss was due to
continued significant investment in product development and
geographical expansion, and weaker than planned profitability of some
large customer projects. The business continued to grow during the
period according to the plan and the progress related to customer
acquisition was good.
EB continued to proceed on its long-term path to conduct automotive
business with leading automotive software products and tools in the
global market. In November EB announced having supplied two ground
breaking applications for Ford SYNC, a fully integrated car
connectivity and entertainment platform. In December EB announced new
versions of EB street director navigation software and EB tresos
Standard Software tooling.
WIRELESS
The Wireless Business Segment comprises the following businesses:
- Wireless Solutions provides customized solutions and R&D services
for wireless industry and other industries utilizing wireless
technologies.
- Wireless Communications Tools provides test tools for measuring,
modeling and emulating radio channel environments.
- Wireless Sensor Solutions provides complete RFID reader network
solutions.
During the fourth quarter of 2008, the net sales of the Wireless
Business Segment amounted to EUR 30.7 million (EUR 28.2 million, 4Q
2007), representing a year-on-year growth of 8.7 per cent. The
operating loss from business operations amounted to EUR -0.8 million
and the non-recurring restructuring costs and write-offs totaled to
EUR -4.0 million, resulting in a total operating loss of EUR -4.9
million (EUR -4.1 million, 4Q 2007).
As a part of the profit improvement program EB announced October 1st
a change of the business model in the Mobile WiMAX by shifting from
investing upfront in the development of radio base station module
products to the development of customer-financed WiMAX solutions. The
change of business model reduces significantly EB's own R&D
investment going forward, while maintaining the opportunity to
develop and implement demanding Mobile WiMAX solutions for customers.
Due to the change of the business model, Mobile WiMAX contributed to
the growth of the revenues during the fourth quarter. Driven by the
global slowdown, the price pressures increased during the quarter in
R&D services.
The sales of wireless communications' emulation and design tools
started to recover. The new emulator platform with the first product
Propsim F8 introduced in September started to generate interest on
the market and the first F8 was delivered in December 2008.
Geographically the radio channel emulator business was in balance
between different regions of the world.
The UHF RFID reader systems sales saw a downturn from the already low
levels of sales earlier this year due to weaker demand for automotive
supply chain solutions. The size of the individual deployment
programs remained small, as the market consists mostly of pilots and
trial cases.
MARKET OUTLOOK
The share of electronics and software in cars has grown significantly
during the past years and it is expected that the trend of increased
use of software in automotive continues to prevail in the market. The
majority of the innovation and differentiation in the automotive
industry is brought about by software and electronics. In order to
enable faster innovation and to improve quality, development
efficiency and complexity related to software, the use of standard
software solutions is expected to increase. The automotive software
market is expected to enjoy a 15 per cent Compound Annual Growth Rate
(CAGR) during 2007-2012 in Europe (Frost & Sullivan). This may in the
near-term be affected by the current downturn of the automotive
industry. However, the underlying growth of the automotive software
market is expected to continue past the crisis.
The global mobile infrastructure market is decreasing to some extent
and the consolidation of the industry is expected to continue. The
commercial market start of Mobile WiMAX has delayed when compared to
the original schedule, but the operator service market has started in
the first cities in the USA.
The global mobile phone market is leveling off and is expected to
decrease in volume in short-term. The value share is expected to move
towards higher-end due to the increased demand for new features and
services. Open architectures and software platforms are emerging
faster than earlier anticipated, creating opportunities for companies
with strong integration capabilities.
The mobile satellite services industry is undergoing a large paradigm
shift to the next generation solutions with new operators being
formed and traditional operators upgrading their solutions and
offerings. Mastering of multi-radio technologies and end-to-end
system architectures covering both terminal and network technologies,
has gained importance in the complex wireless technology industry.
The R&D services market is facing price pressures continuing to drive
increased off-shoring in the industry. However, attractive niches
continue to exist (OVUM). Because of the economical slowdown, it is
estimated that companies will be reviewing their R&D costs and
project portfolio resulting to reduction of the overall R&D
expenditures and activities during the next couple of years. OEMs
need to reduce their fixed costs and increase flexibility. This can
create new opportunities for partnering.
The wireless communications tools market has been weak as the
expected market drivers (MIMO technologies, 3GPP LTE and Mobile
WiMAX) have so far generated only moderate demand for advanced
development tools. The demand may have been impacted also by the
economical downturn but it is expected that in the medium and long
term the wireless communications tools market will see an era of
growth driven by 3GPP LTE.
RESEARCH AND DEVELOPMENT DURING 4Q 2008
The total R&D investments during the fourth quarter were EUR 7.4
million (EUR 13.2 million, 4Q 2007), equaling 14.9 per cent of the
net sales (29.7 % in 2007). The reduction is mostly due to the change
of business model in Mobile WiMAX. The R&D investments to the
automotive software increased.
EVENTS AFTER THE REPORTING PERIOD
EB exited from RFID technology business in the beginning of February
2009 by selling 7iD Technologies GmbH to the acting management of the
said company in Austria. RFID business has been part of Wireless
Sensor Solution business in EB. Due to this transaction Wireless
Sensor Solution business ceases to exist. The write-offs caused by
the transaction are included in the earlier announced (20 November,
2008) maximum EUR 5 million non-recurring restructuring costs and
write-offs for the second half of 2008. The transaction will not have
significant impact on EB's balance sheet or result.
ACTIONS TO IMPROVE PROFITABILITY
EB's profit improvement and cost structure adjustment program
launched in fourth quarter 2008 and targeting in total for EUR 40
million annual cost savings in comparison to the cost level of the
first half of 2008, is proceeding as planned. The cost savings
measures totaling to EUR 30 million have been completed during 4Q
2008 and are gaining their full impact from the beginning of 2009.
The additional measures targeting to EUR 10 million savings have been
mostly identified and are currently being implemented.
EB announced on October 1st a change of the business model in the
Mobile WiMAX by shifting from investing upfront in the development of
radio base station module products to the development of
customer-financed WiMAX solutions. The change of business model
reduces significantly EB's own R&D investment going forward, while
maintaining the opportunity to develop and implement demanding Mobile
WiMAX solutions for customers. EB also continued to adjust downwards
its other R&D investments, increase further the resource utilization
and reduce high cost subcontracting.
EB has concluded the actions to reduce personnel by 115 of the
targeted reductions of 170 employees globally by the end of the first
half of 2009. Earlier in October EB reduced its personnel in support
functions by 42 employees. EB has also agreed upon a maximum of 6
week's temporarily dismiss of employees in Wireless Communications
Tools.
OUTLOOK FOR THE FIRST HALF OF 2009
Current economic downturn and turbulence in all markets is making
forecasting challenging and the visibility is short. Based on the
current limited visibility, EB expects that the turnover of the first
half of 2009 will be on the same level or lower as in the second half
of 2008 (EUR 84.0 million). The announced annual EUR 40 million cost
savings actions will continue to gain effect during the first half of
2009 and consequently the profitability of the first half of 2009 is
expected to improve significantly compared to the operative result of
the second half of 2008 (EUR -14.1 million).
RISKS AND UNCERTAINTIES
The global economic slowdown may affect the demand for the EB's
services, solutions and products and provide pressure on e.g. volumes
and pricing. It may also increase the risk for credit losses. Further
the following risks are related to the company's business operations
in the ongoing financial period:
In R&D services businesses the risks are mainly related to
uncertainties of customers' product program decisions, their make or
buy decisions and, on the other hand, their decisions to continue,
downsize or terminate current product programs, ramping up of project
resources, timing of the most important technology components and,
competitive situation in the market, which all may affect the R&D
service demand and price levels. Further, there are typical industry
warranty and liability risks involved in selling R&D services.
Additional risks emanate from ongoing restructuring of the
telecommunications infrastructure industry.
In the solutions and product businesses the risks are mainly related
to potential market delays, to size, timing and short visibility of
the customers' product purchases and orders, timely closing of
customer contracts, delays in R&D projects, activations based on
customer contracts, obsolescence of inventories and technology risks
in product development causing higher than planned R&D costs.
Revenues expected to come from new products for existing and new
customers include normal timing risks.
More information on the risks and uncertainties affecting EB can be
found on the company website at www.elektrobit.com.
BALANCE SHEET AND FINANCING
The figures presented in the balance sheet of December 31, 2008, have
been compared with the balance sheet of December 31, 2007
(EUR 1,000).
12/2008 12/2007
Non-current assets 46,724 77,196
Current assets 133,797 158,918
Total assets 180,520 236,114
Share capital 12,941 12,941
Other equity 102,181 152,710
Total shareholders' equity 115,123 165,651
Non-current liabilities 19,690 28,937
Current liabilities 45,708 41,526
Total shareholders' equity and liabilities 180,520 236,114
Net cash flow from operations during the period under review:
+ net profit +/- adjustment of accrual basis items EUR -22.4 million
+ decrease in net working capital EUR 2.4 million
+ interest, taxes and dividends EUR -4.7 million
= cash generated from operations EUR -24.7 million
- net cash used in investment activities EUR +31.8 million
- net cash used in financing EUR -10.5 million
= net change in cash and cash equivalents EUR -3.3 million
The amount of accounts and other receivables, booked in current
receivables, was EUR 61.9 million (EUR 78.8 million on December 31,
2007). Accounts and other payables, booked in interest-free current
liabilities, were at EUR 38.7 million (EUR 33.2 million on December
31, 2007).
The amount of non-depreciated consolidation goodwill at the end of
the period under review was EUR 18.3 million (EUR 19.6 million on
December 31, 2007).
The amount of gross investments in the period under review was EUR
9.8 million, consisting of replacement investments and acquisition of
Net Consulting & Services S.A.R.L. Net investments for the reporting
period totaled to EUR -11.5 million including the aforementioned
items, the termination of a long-term investment portfolio and items
created by the sales of Elektrobit AG and Kiinteistö Oy Automaatiotie
1. The total amount of depreciation during the period under review
was EUR 16.4 million, including EUR 5.5 million of depreciation owing
to business acquisitions.
The amount of interest-bearing debt at the end of the reporting
period was EUR 22.4 million. The distribution of net financing
expenses on the income statement was as follows:
interest, dividend and other financial income EUR 4.2 million
interest expenses and other financial expenses EUR -3.5 million
foreign exchange gains and losses EUR -5.4 million
EB's equity ratio at the end of the period was 64.9 per cent (70.9
per cent at the end of 2007).
The figures from the period under review includes the statutory
reserves EUR 3.6 million.
EB follows a currency 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
principles of the currency 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 11.9 million.
PERSONNEL
EB employed an average of 1768 people between January and December
2008. At the end of December, EB had 1735 employees (1725 at the end
of 2007). A significant part of EB's personnel are product
development engineers.
CHANGES IN COMPANY MANAGEMENT
EB's Chairman of the Board, Dr. Tech. J.T. Bergqvist resigned from
the chairmanship and membership of the Board and M.Sc Juha Hulkko was
elected as the new Chairman of the Board in November 2008. The Board
of Directors decided to establish three committees to prepare matters
falling within the competence of the Board. The committees are audit
and financial committee and committees for Automotive and Wireless
segments.
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.
BOARD OF DIRECTORS' PROPOSAL ON THE USE OF THE PROFIT SHOWN ON THE
BALANCE SHEET AND THE PAYMENT OF DIVIDEND
According to the parent company's balance sheet December 31, 2009,
the distributable funds are EUR 22 335 962,13. The loss for the
financial period is EUR -4 874 599,42.
The Board of Directors proposes to the Annual General Meeting to be
held on March 19, 2009 that no dividend shall be paid.
Oulu, February 13, 2009
EB, Elektrobit Corporation
The Board of Directors
Further Information:
Pertti Korhonen
CEO
Tel. +358 40 344 5148
Outi Torniainen
Director, Communications and Marketing
Tel. +358 40 512 1375
Distribution:
NASDAQ OMX Helsinki
Principal media
INVITATION TO PRESS CONFERENCE ON EB'S FINANCIAL STATEMENT BULLETIN
2008
EB, Elektrobit Corporation, will hold a press conference for media,
analysts and institutional investors concerning the Financial
Statement 2008 on
February 13, 2009 at 11.00 - 12.00 hours (CET+1)
in Espoo Keilasatama 5
MR Purje, 2nd floor
The conference will be audio webcast and published live on the
Internet through WebEx.
To join the online meeting
1. Go to
https://elektrobit.webex.com/elektrobit/j.php?ED=111509617&UID=1034101832&PW=338b084d8c665b276a25263f757a72
2. Enter your name and email address
3. Enter the meeting password: Kok!ous103
4. Click "Join Now"
In technical problems go to
http://www.elektrobit.com/webcast/instructions
There will be a possibility to present questions in place as well as
by calling to the following conference call number: + 358 20699101,
PIN: 757344#
A recording of the audio webcast will be available after the
conference on EB's website www.elektrobit.com/investors. The
presentation material will be available after the publication of the
Financial Statement on the same address.
CONSENSUS ESTIMATE
The EB consensus estimate made by the analysts who observe the
company is updated approximately a week before the release of the
financial report. The latest estimate is available on the company
website www.elektrobit.com/investors.
February 13, 2008
EB, Elektrobit Corporation
Corporate Communications
ELEKTROBIT CORPORATION, FINANCIAL STATEMENT BULLETIN 2008
The consolidated financial statement has been prepared in accordance
with International Financial Reporting Standards (IFRS). The
Financial Statement of 2008 has been audited and the auditing report
has been dated on February 12, 2009.
CONSOLIDATED INCOME STATEMENT (MEUR) 1-12/2008 1-12/2007
12 months 12 months
NET SALES 172.3 144.3
Other operating income 6.2 14.4
Change in work in progress and finished goods -2.8 1.5
Work performed by the undertaking for its own
purpose
and capitalized 0.1 0.5
Raw materials -18.0 -10.1
Personnel expenses -104.0 -96.5
Depreciation -16.4 -15.9
Other operating expenses -80.1 -58.5
OPERATING PROFIT (LOSS) -42.7 -20.3
Financial income and expenses -4.7 0.3
RESULT BEFORE TAXES -47.4 -20.0
Income taxes -2.4 0.0
RESULT FOR THE PERIOD FROM CONTINUING
OPERATIONS -49.8 -20.0
Result after taxes for the period from
discontinued
operations 0.3 13.1
RESULT FOR THE PERIOD -49.5 -6.9
Attributable to
Equity holders of the parent -49.5 -6.9
Earnings per share EUR continuing operations
Basic earnings per share -0.38 -0.15
Diluted earnings per share -0.38 -0.15
Earnings per share EUR discontinued operations
Basic earnings per share 0.0 0.10
Diluted earnings per share 0.0 0.10
Earnings per share EUR continuing and
discontinued
Operations
Basic earnings per share -0.38 -0.05
Diluted earnings per share -0.38 -0.05
Average number of shares, 1000 pcs 129 413 129 413
CONSOLIDATED BALANCE SHEET (MEUR) Dec. 31, Dec. 31,
2008 2007
ASSETS
Non-current assets
Property, plant and equipment 16.2 25.1
Goodwill 18.3 19.6
Intangible assets 11.0 18.0
Financial assets at fair value through profit
or loss 10.8
Other financial assets 0.4 0.3
Receivables 0.8 0.7
Deferred tax assets 0.1 2.8
Non-current assets total 46.7 77.2
Current assets
Inventories 3.3 7.6
Trade and other receivables 61.9 78,8
Financial assets at fair value through profit
or loss 50.9
Cash and short term deposits 68.6 21.6
Current assets total 133.8 158.9
TOTAL ASSETS 180.5 236.1
EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent
Share capital 12.9 12.9
Share premium 64.6 64.6
Translation difference 0.2 -0.4
Retained earnings 37.4 88.5
Minority interest 0.0 0.0
Total equity 115.1 165.7
Non-current liabilities
Deferred tax liabilities 2.6 4.4
Provisions 1.0
Interest-bearing liabilities 15.4 23.9
Other liabilities 0.7 0.6
Non-current liabilities total 19.7 28.9
Current liabilities
Trade and other payables 35.1 31.1
Financial liabilities at fair value through
profit or loss 0.1
Pension obligations 1.0 0.9
Current tax liabilities 0.0 1.2
Provisions 2.5
Interest-bearing loans and borrowings 7.0 8.3
Current liabilities total 45.7 41.5
Total liablities 65.4 70.5
TOTAL EQUITY AND LIABILITIES 180.5 236.1
CONSOLIDATED CASH FLOW STATEMENT (MEUR) 1-12/2008 1-12/2007
12 months 12 months
CASH FLOW FROM OPERATING ACTIVITIES
Result for the period -49.5 -6.9
Adjustment of accrual basis items 27.0 -6.4
Change in net working capital 2.4 -11.6
Interest paid on operating activities -7.3 -1.8
Interest received from operating activities 4.4 1.5
Other financial income and expenses, net
received 0.0 0.0
Income taxes paid -1.7 -1.9
NET CASH FROM OPERATING ACTIVITIES -24.7 -27.1
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of business unit, net of cash
acquired -0.9 -4.7
Acquisition of minority interest -10.2
Disposal of business unit, net of cash acquired 26.8 16.9
Purchase of property, plant and equipment -1.8 -3.9
Purchase of intangible assets -2.6 -6.3
Purchase of other investments -0.5 -3.9
Sale of property, plant and equipment 0.2 0.5
Sale of intangible assets 1.1
Proceeds from sale of investments 10.6 3.7
NET CASH FROM INVESTING ACTIVITIES 31.8 -6.8
CASH FLOW FROM FINANCING ACTIVITIES
Loans granted -0.5
Proceeds from borrowing 0.1 8.2
Repayment of borrowing -1.9 -7.6
Payment of finance liabilities -6.0 -5.1
Dividends paid -2.6 -14.2
NET CASH FROM FINANCING ACTIVITIES -10.5 -19.3
NET CHANGE IN CASH AND CASH EQUIVALENTS -3.3 -53.2
Cash and cash equivalents at beginning of
period 71.9 125.1
Cash and cash equivalents at end of period 68.6 71.9
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (MEUR)
A = Share capital
B = Share premium
C = Retained earnings
D = Result for the period
E = Minority interest
F = Total equity
A B C D E F
Equity on January 1, 2007 12.9 64.6 108.9 2.1 188.6
Result for the period -6.9 6.9
Dividend distribution -14.2 -14.2
Share-related compensation 1.2 1.2
Translation difference -0.2 -2.1 -2.3
Others -0.7 -0.7
Equity on December 31, 2007 12.9 64.6 95.0 -6.9 0.0 165.7
Equity on January 1, 2008 12.9 64.6 88.1 165.7
Result for the period -49.5 -49.5
Dividend distribution -2.6 -2.6
Share-related compensation 1.0 1.0
Translation difference 0.6 0.6
Others -0.0 -0.0
Equity on December 31, 2008 12.9 64.6 87.1 -49.5 115.1
NOTES TO THE FINANCIAL STATEMENT BULLETIN
Accounting principles for the Financial Statement Bulletin:
The same accounting policies and methods of computation are followed
in the financial statement bulletin as compared with annual financial
statements.
Explanatory comments about the seasonality or cyclicality of
reporting period operations:
The company operates in business areas which are subject to seasonal
fluctuations.
The nature and amount of items affecting assets, liabilities, equity,
net income, or cash flows which are unusual because of their nature,
size or incidence:
The investment portfolio in the non-current assets worth of EUR 10.6
million was dissolved and the amount was transferred into assets
during the reporting period.
The cash flow from investments during the reporting period includes
the sale price payment of EUR 13.1 million from the property sales
transaction done in December 2007.
As a consequence of the property sales of Kiinteistö Oy Automaatiotie
1 non-current assets decreased EUR 6.0 million and interest-bearing
borrowings decreased EUR 6.0 million.
The result of the reporting period comprises non-recurring
restructuring costs of EUR 9.2 million, goodwill write-offs of EUR
2.8 million, a write-off of EUR 0.6 million of an activated R&D
investment and bad dept reserve of EUR 1.0 million.
Dividends paid:
According to the decision of the company's Annual Shareholders'
Meeting held on March 14, 2008, dividend of EUR 0.02 per share, a
total of EUR 2,588,253.80 was paid on March 28, 2008
SEGMENT INFORMATION (MEUR) 1-12/2008 1-12/2007
12 months 12 months
Automotive
Net sales to external customers 63.3 52.6
Net sales to other segments 0.1 0.0
Net sales total 63.4 52.7
Operating profit (loss) -12.1 0.7
Wireless
Net sales to external customers 108.6 90.9
Net sales to other segments 0.1 0.8
Net sales total 108.6 91.7
Operating profit (loss) -28.5 -22.8
Other businesses
Net sales to external customers 0.4 0.8
Net sales to other segments 0.0 0.0
Net sales total 0.4 0.8
Operating profit (loss) -2.1 1.8
Eliminations
Net sales to external customers 0.0 0.0
Net sales to other segments -0.2 -0.8
Net sales total -0.2 -0.8
Operating profit (loss) 0.0 0.0
Group total
Net sales to external customers 172.3 144.3
Operating profit (loss) -42.7 -20.3
Net sales of geographical segments (MEUR) 1-12/2008 1-12/2007
12 months 12 months
Net sales
Europe 114.9 101.6
Americas 49.2 33.3
Asia 8.1 9.5
Net sales total 172.3 144.3
Material events subsequent to the end of the interim period that have
not been reflected in the financial statements for the interim
period:
2dn of February, 2009 EB existed from RFID technology business by
selling 7iD Technologies GmbH to the acting management of the said
company in Austria. RFID business has been part of Wireless Sensor
Solution business in EB and it has 20 employees. Due to this
transaction Wireless Sensor Solution business ceases to exist.
The effect of changes in the composition of the group structure
during the interim period:
During the reporting period, EB sold 100 per cent of the share
capital of Elektrobit AG and 100 per cent of share capital of
Kiinteistö Oy Automaatiotie 1.
During the reporting period, EB has acquired 100 per cent of the
share of Net Consulting & Services S.A.R.L in France. The acquisition
does not have a significant impact on EB's balance sheet or result.
Related party transactions: 1-12/2008 1-12/2007
Employee benefits for key management and stock
option expenses total 2.7 2.5
Loans and guarantees to related party
There have not been other transactions between
the
related parties
INCOME STATEMENT BY 10-12/ 7-9/ 4-6/ 1-3/ 10-12/
QUARTER (MEUR) 2008 2008 2008 2008 2007
3 months 3 months 3 months 3 months 3 months
NET SALES 49.5 34.5 41.0 47.3 44.6
Other operating income 1.5 2.6 0.7 1.4 10.7
Change in work in
progress and
finished goods -1.2 -0.8 -0.1 -0.6 -1.1
Work performed by the
undertaking
for its own purpose
and capitalized 0.0 -0.0 0.0 0.1 0.1
Raw materials -6.6 -2.3 -3.6 -5.6 -3.1
Personnel expenses -27.8 -24.3 -24.8 -27.2 -26.6
Depreciation -3.8 -2.9 -6.5 -3.2 -7.6Other operating
expenses -20.1 -19.7 -20.1 -20.2 -19.5
OPERATING PROFIT
(LOSS) -8.5 -12.9 -13.3 -8.0 -2.4
Financial income and
expenses -3.3 -1.6 -0.2 0.4 -0.9
RESULT BEFORE TAXES -11.8 -14.4 -13.6 -7.7 -3.3
Income taxes -2.3 -0.1 0.0 -0.0 0.0
RESULT FOR THE PERIOD
FROM
CONTINUING OPERATIONS -14.0 -14.6 -13.5 -7.7 -3.3
Result after taxes for
the period from
discontinued
operations 0.1 0.0 0.1 0.0 0.4
RESULT FOR THE PERIOD -13.9 -14.6 -13.4 -7.7 -2.9
Attributable to
Equity holders of
the parent -13.9 -14.6 -13.4 -7.7 -2.9
BALANCE SHEET BY Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
QUARTER
(MEUR) 2008 2008 2008 2008 2007
ASSETS
Non-current assets
Property, plant and
equipment 16.2 17.4 24.3 24.5 25.1
Goodwill 18.3 18.2 17.6 19.6 19.6
Intangible assets 11.0 15.8 16.3 18.2 18.0
Financial assets at
fair value
through profit or
loss 10.8
Other financial
assets 0.4 0.3 0.3 0.4 0.3
Receivables 0.8 0.9 0.9 0.7 0.7
Deferred tax assets 0.1 2.6 3.4 3.0 2.8
Non-current assets
total 46.7 55.3 62.8 66.4 77.2
Current assets
Inventories 3.3 5.8 7.2 7.4 7.6
Trade and other
receivables 61.9 60.2 61.9 64.9 78.8
Financial assets at
fair value
through profit or
loss 0.5 1.6 50.9
Cash and short term
deposits 68.6 67.2 74.8 85.7 21.6
Current assets total 133.8 133.2 144.4 159.6 158.9
TOTAL ASSETS 180.5 188.5 207.2 226.0 236.1
EQUITY AND LIABILITIES
Equity attributable to
equity holders
of the parent
Share capital 12.9 12.9 12.9 12.9 12.9
Share premium 64.6 64.6 64.6 64.6 64.6
Translation
difference 0.2 0.1 -0.8 -0.8 -0.4
Retained earnings 37.4 51.0 65.6 78.6 88.5
Minority interest
Total equity 115.1 128.6 142.3 155.3 165.7
Non-current
liabilities
Deferred tax
liabilities 2.6 3.2 3.5 4.2 4.4
Provisions 1.0 1.2
Interest-bearing
liabilities 15.4 15.9 22.8 23.9 23.9
Other liabilities 0.7 0.6 0.6 0.6 0.6
Non-current
liabilities total 19.7 20.8 26.8 28.7 28.9
Current liablities
Trade and other
payables 35.1 26.2 28.0 33.4 32.3
Financial
liabilities at fair
value
through profit or
loss 0.1 1.1
Pension obligations 1.0 1.1 1.1 1.1 0.9
Provisions 2.5 0.7
Interest-bearing
loans and
borrowings
(non-current) 7.0 9.9 8.9 7.5 8.3
Current liabilities
total 45.7 39.1 38.0 42.0 41.5
Total liablities 65.4 59.9 64.8 70.7 70.5
TOTAL EQUITY AND
LIABILITIES 180.5 188.5 207.2 226.0 236.1
CONSOLIDATED CASH FLOW 10-12/ 7-9/ 4-6/ 1-3/ 10-12/
STATEMENT BY QUARTER 2008 2008 2008 2008 2007
3 months 3 months 3 months 3 months 3 months
Net cash from
operating activities -0.5 -7.7 -9.0 -7.4 -8.6
Net cash from
investing activities 5.7 0.5 -0.0 25.7 -0.7
Net cash from
financing activities -3.8 -0.4 -1.8 -4.5 -1.4
Net change in cash and
cash
equivalents 1.4 -7.6 -10.9 13.8 -10.8
FINANCIAL PERFORMANCE RELATED RATIOS 1-12/2008 1-12/2007
12 months 12 months
INCOME STATEMENT (MEUR)
Net sales 172.3 144.3
Operating profit (loss) -42.7 -20.3
Operating profit (loss), % of net sales -24.8 -14.1
Result before taxes -47.4 -20.0
Result before taxes, % of net sales -27.5 -13.9
Result for the period -49.8 -20.0
PROFITABILITY AND OTHER KEY FIGURES
Interest-bearing net liabilities, (MEUR) -46.2 -39.7
Net gearing, -% -40.2 -24.0
Equity ratio, % 64.9 70.9
Gross investments, (MEUR) 9.8 44.1
Average personnel during the period 1768 1695
Personnel at the period end 1735 1725
AMOUNT OF SHARE ISSUE ADJUSTMENT Dec. 31, Dec. 31,
(1,000 pcs) 2008 2007
At the end of period 129 413 129 413
Average for the period 129 413 129 413
Average for the period diluted with stock
options 129 413 129 413
STOCK-RELATED FINANCIAL RATIOS (EUR) 1-12/2008 1-12/2007
12 months 12 months
Basic earnings per share -0.38 -0.15
Diluted earnings per share -0.38 -0.15
Equity *) per share 0.89 1.28
*) Equity attributable to equity holders of
the parent
MARKET VALUES OF SHARES (EUR) 1-12/2008 1-12/2007
Highest 1.79 2.48
Lowest 0.29 1.51
Average 0.82 1.93
At the end of period 0.33 1.64
Market value of the stock, (MEUR) 42.7 212.2
Trading value of shares, (MEUR) 9.6 53.4
Number of shares traded, (1,000 pcs) 11 770 27 656
Related to average number of shares % 9.1 21.4
SECURITIES AND CONTINGENT LIABILITIES Dec. 31, Dec. 31,
(MEUR) 2008 2007
AGAINST OWN LIABILITIES
Floating charges 3.1 3.1
Mortgages 0.0 7.0
Pledges 1.1 9.8
Guarantees 4.1 2.1
Mortgages are pledged for liabilities
totaled 9.9 17.3
OTHER DIRECT AND CONTINGENT LIABILITIES
Rental liabilities
Falling due in the next year 4.2 4.0
Falling due after one year 5.1 4.9
NOMINAL VALUE OF CURRENCY DERIVATIVES Dec. 31, 2008 Dec. 31, 2007
(MEUR)
Foreign exchange forward contracts
Market value -0.1 0.7
Nominal value 11.9 26.4
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