2010-10-28 07:00:00 CEST
2010-10-28 07:00:42 CEST
REGULATED INFORMATION
Elektrobit Oyj - Interim report (Q1 and Q3)
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-SEPTEMBER 2010 NET SALES GREW FROM LAST YEAR, STRONG GROWTH IN THE AUTOMOTIVE BUSINESS SEGMENT, STATUTORY PROVISION OF EUR 8.3 MILLION BOOKED DUE TO
STOCK EXCHANGE RELEASE
Free for publication on October 28, 2010 at 8.00 am (CEST+1)
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-SEPTEMBER 2010
NET SALES GREW FROM LAST YEAR, STRONG GROWTH IN THE AUTOMOTIVE BUSINESS SEGMENT,
STATUTORY PROVISION OF EUR 8.3 MILLION BOOKED DUE TO RISK OF LOSING RECEIVABLES
SUMMARY JULY-SEPTEMBER 2010
- Net sales for the period amounted to EUR 33.7 million (EUR 33.5 million,
3Q 2009), representing an increase of 0.6% year-on-year.
- After the review period TerreStar Networks Inc., a customer to EB's subsidiary
Elektrobit Inc., filed voluntary petitions for reorganization under Chapter 11
of the United States Bankruptcy Code in order to strengthen its financial
position. EB has booked a statutory provision in the amount of EUR 8.3 million
related to the receivables owed by TerreStar Networks. More information is
available in the chapters titled Outlook for the second half of 2010, Risks and
uncertainties and Events after the review period.
- Operating loss excluding the statutory provision of EUR 8.3 million related to
TerreStar was EUR -3.2 million (EUR -0.8 million, 3Q 2009). The decline year-on-
year was due to weaker performance in the Wireless Business Segment. Operating
loss including the statutory provision was EUR -11.5 million.
- EBITDA was EUR -9.3 million (EUR 1.6 million, 3Q 2009).
- Operating cash flow was EUR 0.2 million (EUR 4.6 million, 3Q 2009). The net
cash flow was EUR -30.1 million (EUR 1.8 million, 3Q 2009). The decrease was
mainly attributable to the distribution of EUR 25.9 million from the share
premium fund in September 2, 2010.
- Cash and other liquid assets totaled EUR 29.8 million (EUR 62.2 million,
3Q 2009).
- Equity ratio including the impact of the statutory provision remained strong
at 62.7% (71.1%, 3Q 2009).
- Earnings per share including the statutory provision were EUR -0.08 (EUR
-0.00, 3Q 2009).
SUMMARY JANUARY-SEPTEMBER 2010
- Net sales amounted to EUR 119.9 million (EUR 113.7 million, Jan-Sept 2009),
representing an increase of 5.5% year-on-year.
- Operating loss excluding the statutory provision of EUR 8.3 million related to
TerreStar was EUR -1.4 million (EUR -1.9 million, Jan-Sept 2009). Operating loss
including the statutory provision was EUR -9.7 million.
- EBITDA was EUR -3.2 million (EUR 5.6 million, Jan-Sept 2009).
- Operating cash flow was EUR 6.3 million (EUR 0.9 million, Jan-Sept 2009). Net
cash flow was EUR -29.2 million (EUR -6.4 million, Jan-Sept 2009). The decrease
was mainly attributable to the distribution of EUR 25.9 million from the share
premium fund in September 2, 2010.
- Earnings per share including the statutory provision were EUR -0.08 (EUR
-0.02, Jan-Sept 2009).
EB'S CEO JUKKA HARJU:"During the January-September period EB's net sales increased slightly. Sales
and profit for the Automotive Business Segment increased considerably from last
year as well as sequentially as the industry recovered from last year's
downturn. The Wireless Business Segment's net sales and operating profit,
excluding the statutory provision related to TerreStar, were weaker compared to
last year mostly due to lower sales in the third quarter. Managing of our
financial and business interests with TerreStar during their restructuring
process will require special attention. Our main objective for the second half
of 2010 is to continue improving profitability."
OUTLOOK FOR THE SECOND HALF OF 2010
During the second half the growth of EB's sales in the Automotive Business
Segment is expected to continue. Sales in EB's Wireless Business Segment is
expected to be lower than in the first half of the year. More specific market
outlook is presented under the "Business Segments' development during July-
September 2010 and market outlook" section.
The continuing challenges of TerreStar Networks Inc. (Terrestar Networks), a
significant customer of EB's subsidiary Elektrobit Inc., in obtaining funding
have resulted in payment delays and increased the risk of credit losses. While
Terrestar Networks and certain other affiliates of TerreStar Corporation, a
parent company to TerreStar Networks, have on October 19, 2010 filed voluntary
petitions for reorganization under Chapter 11 of the United States Bankruptcy
Code in order to strengthen their financial position, this risk may grow during
the second half of 2010. TerreStar Networks' court filings with the United
States Bankruptcy Court contain only limited information on how EB's receivables
will be treated in the reorganization. Further, the court filings do not contain
a plan of reorganization, which EB anticipates will be presented for the
approval of creditors and the Court later in the bankruptcy case. Due to its
customer's reorganization process, EB has lowered its Terrestar Networks related
net sales estimates for the last quarter of 2010.
Considering the current estimated implications of TerreStar Networks' filing for
reorganization for EB's profit and financial position in the third quarter of
2010, as well as on the outlook for the parties' business relations during the
last quarter, EB expects that net sales for the second half of 2010 will be
higher than in the second half of 2009 (EUR 73.6 million) and operating profit
for the second half of 2010, without the statutory provision of EUR 8.3 million,
will be clearly lower than the operating profit for the second half of 2009 (0.0
million). The weakening operating profit level is mainly due to lowered
TerreStar Networks related net sales estimates. It is possible that, based on
later information related to TerreStar Networks' reorganization, this outlook
may need to be reconsidered.
Uncertainties regarding the outlook are presented under the "Risks and
uncertainties" section. Information on TerreStar Networks's filing for
reorganization is also available in the "Events after the review period" and the
October 20 and 25, 2010 stock exchange releases at www.elektrobit.com.
INVITATION TO A PRESS CONFERENCE
EB will hold a press conference on the interim report 3Q 2010 for media,
analysts and institutional investors in Finland, Espoo, Keilasatama 5, 2(nd)
floor in meeting room Purje on Thursday, October 28, 2010 at 11.00 am (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 on joining the conference 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 2009 totaled MEUR
153.8. Elektrobit Corporation is listed on NASDAQ OMX
Helsinki.www.elektrobit.com
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-SEPTEMBER 2010
FINANCIAL PERFORMANCE DURING JANUARY-SEPTEMBER 2010
(Corresponding figures are for January-September 2009 unless otherwise
indicated)
EB's net sales during January-September 2010 increased by 5.5 per cent to EUR
119.9 million (EUR 113.7 million). Operating loss excluding the statutory
provision of EUR 8.3 million related to TerreStar was EUR -1.4 million (EUR -1.9
million). Operating loss including the statutory provision was EUR -9.7 million.
The Automotive Business Segment's net sales during January-September 2010
amounted to EUR 57.0 million (EUR 44.7 million), representing 27.7% growth. The
segment posted operating profit of EUR 0.8 million (EUR -4.0 million). The
profitability improvement year-on-year was mainly attributable to the increased
sales and solid overall market demand.
The Wireless Business Segment's net sales during January-September 2010 amounted
to EUR 62.3 million (EUR 68.6 million), representing a decline of -9.1% compared
to January-September 2009. Operating loss excluding the statutory provision was
EUR -2.2 million (EUR 1.3 million). The decline was mostly attributable to
weaker sales in the third quarter. Operating loss including the statutory
provision was EUR -10.4 million.
The total R&D investments during the reporting period grew to EUR 15.5 million
(EUR 10.5 million), equaling 12.9% of the net sales (9.2%).
+------------------------------------------------------------+--------+--------+
|CONSOLIDATED INCOME STATEMENT (MEUR) |1-9 2010|1-9 2009|
+------------------------------------------------------------+--------+--------+
| |9 months|9 months|
+------------------------------------------------------------+--------+--------+
|NET SALES | 119.9| 113.7|
+------------------------------------------------------------+--------+--------+
|OPERATING PROFIT (LOSS) | -9.7| -1.9|
+------------------------------------------------------------+--------+--------+
|Financial income and expenses | -0.9| -0.3|
+------------------------------------------------------------+--------+--------+
|RESULT BEFORE TAX | -10.6| -2.2|
+------------------------------------------------------------+--------+--------+
|RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS | -10.2| -3.1|
+------------------------------------------------------------+--------+--------+
|Profit after tax for the year from discontinued operations | | 0.3|
+------------------------------------------------------------+--------+--------+
|RESULT FOR THE PERIOD | -10.2| -2.8|
+------------------------------------------------------------+--------+--------+
|TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -9.8| -3.4|
+------------------------------------------------------------+--------+--------+
| | | |
+------------------------------------------------------------+--------+--------+
|Result for the period attributable to: | | |
+------------------------------------------------------------+--------+--------+
| Equity holders of the parent | -10.6| -2.8|
+------------------------------------------------------------+--------+--------+
| Minority interest | 0.3| 0.0|
+------------------------------------------------------------+--------+--------+
|Total comprehensive income for the period attributable to: | | |
+------------------------------------------------------------+--------+--------+
| Equity holder of the parent | -10.1| -3.4|
+------------------------------------------------------------+--------+--------+
| Minority interest | 0.3| 0.0|
+------------------------------------------------------------+--------+--------+
| | | |
+------------------------------------------------------------+--------+--------+
|Earnings per share EUR continuing operations | -0.08| -0.02|
+------------------------------------------------------------+--------+--------+
|Earnings per share EUR discontinued operations | | 0.00|
+------------------------------------------------------------+--------+--------+
|Earnings per share EUR continuing and discontinued | -0.08| -0.02|
|operations | | |
+------------------------------------------------------------+--------+--------+
- Cash flow from business operations was EUR 6.3 million (EUR 0.9 million).
- Equity ratio was 62.7% (71.1%).
- Net gearing was -20.5% (-39.5%).
QUARTERLY FIGURES
The distribution of the Group's overall net sales and profit, MEUR:
+------------------------------------------------+-----+-----+-----+-----+-----+
| |3Q 10|2Q 10|1Q 10|4Q 09|3Q 09|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Net sales | 33.7| 44.7| 41.5| 40.1| 33.5|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss) |-11.5| 0.1| 1.7| 0.5| -0.8|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss) without non-recurring | -3.2| 0.1| 1.7| 0.8| -0.8|
|costs | | | | | |
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result before taxes |-10.6| -0.7| 0.7| 0.1| -0.6|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result for the period | -9.0| -0.9| -0.3| -0.3| -0.5|
+------------------------------------------------+-----+-----+-----+-----+-----+
The distribution of net sales by Business Segments, MEUR:
+-----------------+-----+-----+-----+-----+-----+
| |3Q 10|2Q 10|1Q 10|4Q 09|3Q 09|
+-----------------+-----+-----+-----+-----+-----+
|Automotive | 19.9| 18.6| 18.5| 16.8| 14.8|
+-----------------+-----+-----+-----+-----+-----+
|Wireless | 13.7| 25.9| 22.8| 23.0| 18.6|
+-----------------+-----+-----+-----+-----+-----+
|Corporation total| 33.7| 44.7| 41.5| 40.1| 33.5|
+-----------------+-----+-----+-----+-----+-----+
The distribution of net sales by market areas, MEUR and %:
+--------+-----+-----+-----+-----+-----+
| |3Q 10|2Q 10|1Q 10|4Q 09|3Q 09|
+--------+-----+-----+-----+-----+-----+
|Asia | 1.8| 2.6| 2.7| 4.4| 1.8|
| | 5.4%| 5.9%| 6.5%|11.0%| 5.5%|
+--------+-----+-----+-----+-----+-----+
|Americas| 9.4| 17.4| 15.8| 13.7| 11.1|
| |27.7%|39.0%|38.1%|34.2%|33.1%|
+--------+-----+-----+-----+-----+-----+
|Europe | 22.5| 24.6| 23.0| 22.0| 20.6|
| |66.8%|55.2%|55.4%|54.8%|61.4%|
+--------+-----+-----+-----+-----+-----+
Net sales (external) and operating profit development by Business Segments and
Other businesses, MEUR:
+-----------------------+-----+-----+-----+-----+-----+
| |3Q 10|2Q 10|1Q 10|4Q 09|3Q 09|
+-----------------------+-----+-----+-----+-----+-----+
|Automotive | | | | | |
|Net sales | 19.9| 18.6| 18.5| 16.8| 14.8|
|Operating profit (loss)| 0.1| -0.2| 0.9| 0.3| -0.9|
+-----------------------+-----+-----+-----+-----+-----+
|Wireless | | | | | |
|Net sales | 13.7| 25.9| 22.8| 23.0| 18.6|
|Operating profit (loss)|-11.7| 0.3| 0.9| -0.3| -0.1|
+-----------------------+-----+-----+-----+-----+-----+
|Other businesses | | | | | |
|Net sales | 0.2| 0.2| 0.2| 0.2| 0.2|
|Operating profit (loss)| 0.1| 0.0| -0.1| 0.5| 0.2|
+-----------------------+-----+-----+-----+-----+-----+
|Total | | | | | |
|Net sales | 33.7| 44.7| 41.5| 40.1| 33.5|
|Operating profit (loss)|-11.5| 0.1| 1.7| 0.5| -0.8|
+-----------------------+-----+-----+-----+-----+-----+
BUSINESS SEGMENTS' DEVELOPMENT DURING JULY-SEPTEMBER 2010 AND MARKET OUTLOOK
EB's reporting is based on the Automotive and Wireless Business Segments.
AUTOMOTIVE
The Automotive Business Segment consists of in-car software products, navigation
software for after market devices and development services for the automotive
industry with leading car manufacturers, car electronics suppliers and
automotive chipset suppliers as customers. By combining its software products
and R&D services EB is creating unique, customized solutions for its automotive
customers.
During the third quarter of 2010, net sales of the Automotive Business Segment
amounted to EUR 19.9 million (EUR 14.8 million, 3Q 2009), representing strong
34.4% growth year-on-year. The operating profit was EUR 0.1 million (EUR -0.9
million, 3Q 2009). The profitability improvement year-on-year was mainly due to
increased sales and solid overall market demand.
In accordance with its value proposal as an infotainment software solution
partner EB announced that it provides both navigation software and speech dialog
software for the infotainment head unit of the new Audi A1. The navigation
software is based on the navigation solution EB street director and the speech
solution uses Speech Target Framework service that is included in EB GUIDE tools
for user interface design.
EB has developed a position as the global AUTOSAR (automotive open system
architecture) partner for several car electronics system vendors. During the
quarter the AUTOSAR market grew slightly slower than expected and EB announced
extensions to its EB Tresos software tools that are used to develop embedded
automotive software for electronic control units.
EB accelerated its efforts to expand its business to driver assistance
applications.
Automotive Market Outlook
The majority of the innovation and differentiation in the automotive industry is
brought about by software and electronics. The share of electronics and software
in cars has grown significantly during the past years. It is expected that the
use of software in automotives continues to increase. The estimated annual
automotive software market long-term growth rate is some 15% (Frost & Sullivan).
The underlying world automotive market is also expected to grow steadily with a
yearly rate of about 6% between 2010 and 2015 (CSM).
Expanding capabilities and more sophisticated and networked features increase
the complexity of automotive electronics. The growing complexity is driving the
industry towards gradual separation of software and hardware in the electronics
solutions. It is necessary for managing the architectural software layer
appropriately and 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 of productized, efficient software solutions EB
is offering.
EB's net sales cumulating from the automotive industry are currently primarily
driven by the development of new cars and platforms. Dependency on production
volumes of the car industry is still limited. However, over the coming years
dependency on the production volumes is expected to increase as a result of the
transition towards software product business models.
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.
Net sales for the Wireless Business Segment during the third quarter of 2010 was
EUR 13.7 million (EUR 18.6 million, 3Q 2009), representing a fall of 26.4%.
Operating loss excluding the statutory provision of EUR 8.3 million related to
TerreStar was EUR -3.4 million (EUR -0.1 million, 3Q 2009). This was mostly due
to weaker sales in the satellite terminal and mobile infrastructure markets. The
temporary dismissals announced in June resulted in cost savings of approximately
EUR 0.4 million in the third quarter. Operating loss including the statutory
provision was EUR -11.7 million.
During the third quarter the EB-designed TerreStar GENUS smartphone became
available in the USA and EB made good progress in the defense market. Demand for
services and solutions in the device domain remained stable. The strengthening
of Open Source Software capabilities continued through the July-September
period.
EB announced the availability of EB Propsim F8 Aerospace and Satellite channel
emulation Option (ASO) for the aerospace and defense markets. Wireless
Communications Tools demand continued to be driven by the advanced development
tools for 3GPP LTE technology.
The global mobile device market volumes have continued to grow in 2010
especially in the area of smart phones. The value share is expected to move
towards higher-end due to the increased demand for new features and services.
The global mobile infrastructure market is expected to be flat during 2010 and
the consolidation of the industry may continue. The mobile satellite
communication service industry is introducing new data and mobile communication
services with new operators being formed and traditional ones upgrading their
solutions and offerings.
The wireless communication R&D services market continues to be challenging and
the continuing price pressure drives increasing off-shoring in the industry.
However, OEMs are expected to increase their R&D flexibility that can create new
partnering opportunities for EB. New open software architectures and platforms
are creating opportunities for companies such as EB with strong integration
capabilities.
LTE standard continued gaining strength and 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. The satellite-terrestrial and
Mobile Satellite Services (MSS) market demand is expected to start moving from
the current reference design phase towards the launch of commercial products and
services. This can create new service and product related business opportunities
for EB. However, EB has lowered its Terrestar Networks related business volume
estimates for the last quarter of 2010, due to its customer's reorganization
process. More exact implications for the parties' future business relations
cannot be currently evaluated.
Need for advanced development tools 3GPP LTE technology is expected to remain as
a driver for the demand in the medium and long term. EB provides world leading
channel emulation tools for the development of MIMO based 3GPP LTE and other
advanced radio technologies.
RESEARCH AND DEVELOPMENT
EB continued its investments in R&D in the automotive software products and
tools, in radio channel emulation products and in Wireless Solutions' product
platforms.
The total R&D investments during the third quarter of 2010 were EUR 5.4 million
(EUR 3.5 million, 3Q 2009), equaling 16.0% of the net sales (10.5%, 3Q 2009).
EUR 1.6 million of R&D investments were capitalized.
OUTLOOK FOR THE SECOND HALF OF 2010
During the second half the growth of EB's sales in the Automotive Business
Segment is expected to continue. Sales in EB's Wireless Business Segment is
expected to be lower than in the first half of the year. More specific market
outlook is presented under the "Business Segments' development during July-
September 2010 and market outlook" section.
The continuing challenges of TerreStar Networks Inc. (Terrestar Networks), a
significant customer of EB's subsidiary Elektrobit Inc., in obtaining funding
have resulted in payment delays and increased the risk of credit losses. While
Terrestar Networks and certain other affiliates of TerreStar Corporation, a
parent company to TerreStar Networks, have on October 19, 2010 filed voluntary
petitions for reorganization under Chapter 11 of the United States Bankruptcy
Code in order to strengthen their financial position, this risk may grow during
the second half of 2010. TerreStar Networks' court filings with the United
States Bankruptcy Court contain only limited information on how EB's receivables
will be treated in the reorganization. Further, the court filings do not contain
a plan of reorganization, which EB anticipates will be presented for the
approval of creditors and the Court later in the bankruptcy case. Due to its
customer's reorganization process, EB has lowered its Terrestar Networks related
net sales estimates for the last quarter of 2010.
Considering the current estimated implications of TerreStar Networks' filing for
reorganization for EB's profit and financial position in the third quarter of
2010, as well as on the outlook for the parties' business relations during the
last quarter, EB expects that net sales for the second half of 2010 will be
higher than in the second half of 2009 (EUR 73.6 million) and operating profit
for the second half of 2010, without the statutory provision of EUR 8.3 million,
will be clearly lower than the operating profit for the second half of 2009 (0.0
million). The weakening operating profit level is mainly due to lowered
TerreStar Networks related net sales estimates. It is possible that, based on
later information related to TerreStar Networks' reorganization, this outlook
may need to be reconsidered.
Uncertainties regarding the outlook are presented under the "Risks and
uncertainties" section. Information on TerreStar Networks's filing for
reorganization is also available in the "Events after the review period" and the
October 20 and 25, 2010 stock exchange releases at www.elektrobit.com.
RISKS AND UNCERTAINTIES
EB has identified a number of business, market and finance related factors that
can affect the level of sales and profits. Those of the greatest significance on
a short term are those affecting the utilization and chargeability levels and
average hourly prices of R&D services. 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. volumes and pricing. It may also
increase the risk for credit losses.
Challenges in obtaining funding have also resulted in payment delays by
TerreStar Networks, a significant customer of EB's subsidiary Elektrobit Inc.,
and increased the risk of credit losses. While Terrestar Networks and certain
other affiliates of TerreStar have on October 19, 2010, in order to strengthen
their financial position, filed voluntary petitions for reorganization under
Chapter 11 of the United States Bankruptcy Code, this risk may grow during the
second half of 2010. Challenges in obtaining funding have also resulted payment
delays by TerreStar Networks, a significant customer of EB's subsidiary
Elektrobit Inc., and increased the risk of credit losses. While Terrestar
Networks and certain other affiliates of TerreStar have on October 19, 2010, in
order to strengthen their financial position, filed voluntary petitions for
reorganization under Chapter 11 of the United States Bankruptcy Code, this risk
may grow during the second half of 2010. Chapter 11 establishes a process for
reorganizing financially troubled companies. Under such reorganization process,
payment by TerreStar Networks of amounts owed to its creditors will require
approval by the United States Bankruptcy Court and, if made pursuant to a plan
of reorganization, an affirmative vote of TerreStar Networks' creditors. It is
also possible that the payment of receivables will be done partly or wholly in a
form of shares in the reorganized company or in the form of other securities
entitling creditors to obtain shares. The form or timing of any such payment of
EB's receivables cannot be predicted with any degree of certainty at this time.
On October 26, 2010, EB's receivables from TerreStar Networks amounted to
approximately USD 25.9 million (EUR 18.6 million), out of which USD 24.2 million
(EUR 17.4 million) are outstanding.. TerreStar Networks' court filings with the
United States Bankruptcy Court contain only limited information on how EB's
receivables will be treated in the reorganization. Further, TerreStar Networks'
court filings do not contain a plan of reorganization, which EB anticipates will
be presented for the approval of creditors and the Court later in the bankruptcy
case. Based on EB's current understanding, there is no reason to believe that EB
would not be able to collect in due course at least that portion of TerreStar
Networks' receivables that exceed the amount of the statutory provision of EUR
8.3 million booked for Q3/2010. It is possible that, based on later information,
this view may need to be reconsidered. While EB has lowered its Terrestar
Networks related net sales estimates for the last quarter of 2010, more exact
implications of the customer's reorganization process for the parties' future
business relations cannot be currently evaluated. At worst, TerreStar Networks'
reorganization process and challenges in obtaining funding may result in
significant credit losses for EB or even termination of the business relation
should TerreStar Networks, in an exercise of its business judgment and with
Court approval, determine that it will not comply with its contractual
obligations towards EB as provided by EB.
As the EB's customer base consists mainly of companies operating in the fields
of automotive and telecommunications, 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. However, 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. The more specific market outlook is presented under the "Business
Segments' development during the second quarter 2010 and market outlook"
section.
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, ramping up and down project
resources, 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, activations based on
customer contracts, obsolescence of inventories and technology risks in product
development causing higher than planned R&D costs. 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, development of the cost of materials
and production yields. The abovementioned risks may manifest themselves as
higher cost of product delivery, and ultimately, as lower profit. 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's website at www.elektrobit.com
STATEMENT OF FINANCIAL POSITION AND FINANCING
The figures presented in the statement of financial position of September
30, 2010, are compared with the statement of the financial position of December
31, 2009 (MEUR). The figures for the period under review contain provisions of
EUR 9.7 million, including the TerreStar related statutory provisions of EUR
8.3 million.
9/2010 12/2009
Non-current assets 39.7 39.4
Current assets 95.8 120.8
Total assets 135.5 160.2
Share capital 12.9 12.9
Other equity 63.3 99.5
Minority interest 1.2 0.4
Total shareholders' equity 77.4 112.8
Non-current liabilities 10.7 15.0
Current liabilities 47.4 32.4
Total shareholders' equity and liabilities 135.5 160.2
Net cash flow from operations during the period under review:
+ net profit +/- adjustment of accrual basis items EUR +6.7 million
+ decrease in net working capital EUR +3.7 million
- interest, taxes and dividends EUR -4.1 million
= cash generated from operations EUR +6.3 million
- net cash used in investment activities EUR -5.0 million
- net cash used in financing EUR -30.6 million
= net change in cash and cash equivalents EUR -29.2 million
The amount of accounts and other receivables, booked in current receivables, was
EUR 62.0 million (EUR 59.3 million on December 31, 2009). Accounts and other
payables, booked in interest-free current liabilities, were 42.4 million (EUR
27.5 million on December 31, 2009). The amount of non-depreciated consolidation
goodwill at the end of the period under review was EUR 18.5 million (EUR 18.5
million on December 31, 2009).
The amount of gross investments in the period under review was EUR 7.0 million,
consisting of replacement investments. Net investments for the reporting period
totaled EUR 6.7 million. The total amount of depreciation during the period
under review was EUR 6.4 million, including EUR 1.6 million of depreciation
owing to business acquisitions.
The amount of interest-bearing debt at the end of the reporting period was EUR
14.0 million. The distribution of net financing expenses on the income statement
was as follows:
interest, dividend and other financial income EUR 0.6 million
interest expenses and other financial expenses EUR -0.6 million
foreign exchange gains and losses EUR -1.0 million
EB's equity ratio at the end of the period was 62.7% (71.5% at the end of 2009).
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 20.0 million.
PERSONNEL
EB employed an average of 1,559 people between January and September 2010. At
the end of September, EB had 1,584 employees (1,528 at the end of 2009). A
significant part of EB's personnel are product development engineers.
On August 28, 2010 Chief Executive Officer Jukka Harju took over the
responsibility for EB's investor communications and investor relations.
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.
DISTRIBUTION AND DECREASE OF THE SHARE PREMIUM FUND
The Annual General Meeting of Elektrobit Corporation, held on March 25, 2010
approved the proposal of the Board of Directors to distribute the shareholders
EUR 0.20 per share from the parent company's share premium fund. In addition, it
approved the Board's proposal to decrease the share premium fund by transferring
to the company's invested unrestricted equity fund the funds remaining in the
share premium fund after the above distribution. The distribution and decrease
required an authorization by the Finnish National Board of Patents and
Registration. The resolutions were booked on the balance sheet in March 2010.
The Finnish National Board of Patents and Registration gave its consent on
August 12, 2010 for the distribution and decrease of the share premium fund. On
September 2, 2010, the shareholders were distributed EUR 0.20 per share from the
share premium fund, EUR 25,882,538.00 in total, and EUR 38,696,853.50 remaining
in the share premium fund after the distribution was transferred to the invested
unrestricted equity fund of the company.
EVENTS AFTER THE REVIEW PERIOD
As informed by EB on October 20, 2010, a significant customer of EB's
subsidiary, Elektrobit Inc, TerreStar Networks and certain other affiliates of
TerreStar Corporation have on October 19, 2010, in order to strengthen their
financial position, filed voluntary petitions for reorganization under Chapter
11 of the United States Bankruptcy Code. TerreStar Networks is a majority-owned
indirect subsidiary of TerreStar Corporation.
On October 25, 2010 EB resolved to book a statutory provision in the amount of
EUR 8.3 million related to the receivables owed to its subsidiary Elektrobit
Inc. by TerreStar Networks, lower its Terrestar Networks related net sales
estimates for the last quarter of 2010 and consequently lower its second half
profit estimate. TerreStar Networks' court filings contain only limited
information on how these receivables will be treated in the reorganization.
Further, the court filings do not contain a plan of reorganization, which EB
anticipates will be presented for the approval of creditors and the United
States Bankruptcy Court later in the bankruptcy case. After subsequent
discussions on the matter, EB resolved to make the statutory provision due to
uncertainty as to how the receivables will be treated in the reorganization.
Information about the implications of the TerreStar Networks' reorganization
process for EB is available in the "Outlook" and "Risks and uncertainties"
sections of this report. EB's stock exchange releases regarding TerreStar's
filing for reorganization and the consequent statutory provision and adjusted
outlook, published on October 20 and 25, 2010 respectively, are available at
www.elektrobit.com.
On October 18, 2010 EB announced that Hannu Huttunen (M. Econ.), 44, has been
appointed President of the Wireless Business Segment and Managing Director of
Elektrobit Technologies Ltd., effective November 1, 2010.
Oulu, October 28, 2010
EB, Elektrobit Corporation
The Board of Directors
Further Information:
Jukka Harju
CEO
Tel. +358 40 344 5466
Distribution:
NASDAQ OMX Helsinki
Principal media
EB, ELEKTROBIT CORPORATION, CONDENSED FINANCIAL STATEMENTS AND NOTES JANUARY-
SEPTEMBER 2010
(unaudited)
The Interim Report has been prepared in accordance with IAS 34 Interim Financial
Reporting.
CONSOLIDATED STATEMENT OF 1-9/2010 1-9/2009 1-12/2009
COMPREHENSIVE INCOME (MEUR)
9 months 9 months 12 months
NET SALES 119.9 113.7 153.8
Other operating income 1.8 2.8 4.0
Change in work in progress and
finished goods 0.3 -0.8 -0.9
Work performed by the undertaking
for its own purpose
and capitalized 0.2 0.4 0.4
Raw materials -9.3 -5.8 -8.3
Personnel expenses -71.6 -67.6 -90.9
Depreciation -6.4 -7.5 -9.7
Other operating expenses -44.5 -37.1 -49.8
OPERATING PROFIT (LOSS) -9.7 -1.9 -1.4
Financial income and expenses -0.9 -0.3 -0.6
RESULT BEFORE TAXES -10.6 -2.2 -2.0
Income taxes 0.3 -0.9 -1.3
RESULT FOR THE PERIOD FROM
CONTINUING
OPERATIONS -10.2 -3.1 -3.3
Result after taxes for the period
from discontinued
operations 0.0 0.3 1.3
RESULT FOR THE PERIOD -10.2 -2.8 -2.0
Other comprehensive income:
Exchange differences on
translating foreign operations 0.4 -0.6 -0.3
Other comprehensive income for the
period total 0.4 -0.6 -0.3
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD -9.8 -3.4 -2.4
Result for the period attributable
to
Equity holders of the parent -10.6 -2.8 -2.2
Minority interest 0.3 0.0 0.2
Total comprehensive income
attributable to
Equity holders of the parent -10.1 -3.4 -2.5
Minority interest 0.3 0.0 0.2
Earnings per share EUR continuing
operations
Basic earnings per share -0.08 -0.02 -0.03
Diluted earnings per share -0.08 -0.02 -0.03
Earnings per share EUR discontinued
operations
Basic earnings per share 0.00 0.01
Diluted earnings per share 0.00 0.01
Earnings per share EUR continuing
and discontinued
Operations
Basic earnings per share -0.08 -0.02 -0.02
Diluted earnings per share -0.08 -0.02 -0.02
Average number of shares, 1000 pcs 129 413 129 413 129 413
Average number of shares, diluted,
1000 pcs 130 376 129 466 129 580
CONSOLIDATED STATEMENT OF FINANCIAL Sept. 30, 2010 Sept. 30, 2009 Dec. 31, 2009
POSITION (MEUR)
ASSETS
Non-current assets
Property, plant and equipment 10.6 12.2 11.4
Goodwill 18.5 18.5 18.5
Intangible assets 10.0 8.8 8.7
Other financial assets 0.1 0.3 0.3
Receivables 0.4 0.8 0.4
Deferred tax assets 0.1 0.0 0.1
Non-current assets total 39.7 40.7 39.4
Current assets
Inventories 2.9 2.6 2.4
Trade and other receivables 62.0 55.6 59.3
Financial assets at fair value
through profit or loss 15.8 0.3 40.2
Cash and short term deposits 15.0 62.2 18.8
Current assets total 95.8 120.7 120.8
TOTAL ASSETS 135.5 161.4 160.2
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent
Share capital 12.9 12.9 12.9
Share premium 64.6 64.6
Invested non-restricted equity
fund 38.7
Translation difference 0.3 -0.4 -0.1
Retained earnings 24.3 35.1 35.0
Minority interest 1.2 0.0 0.4
Total equity 77.4 112.2 112.8
Non-current liabilities
Deferred tax liabilities 1.2 2.2 2.3
Provisions 0.6 1.3 0.9
Interest-bearing liabilities 8.9 12.5 11.8
Other liabilities 0.1
Non-current liabilities total 10.7 16.2 15.0
Current liabilities
Trade and other payables 32.1 24.5 24.4
Financial liabilities at fair
value through profit or loss 0.4
Pension obligations 1.2 1.2 1.2
Provisions 9.1 1.9 1.5
Interest-bearing loans and
borrowings 5.1 5.2 4.9
Current liabilities total 47.4 32.9 32.4
Total liabilities 58.1 49.1 47.3
TOTAL EQUITY AND LIABILITIES 135.5 161.4 160.2
CONSOLIDATED STATEMENT OF CASH FLOWS (MEUR) 1-9/2010 1-9/2009 1-12/2009
9 months 9 months 12 months
CASH FLOW FROM OPERATING ACTIVITIES
Result for the period -10.2 -2.8 -2.0
Adjustment of accrual basis items 17.0 6.6 7.7
Change in net working capital 3.7 -1.6 -3.8
Interest paid on operating activities -2.9 -1.8 -2.0
Interest received from operating activities 0.6 1.4 1.6
Other financial income and expenses, net received 0.0 0.0 0.0
Income taxes paid -1.9 -0.8 -1.1
NET CASH FROM OPERATING ACTIVITIES 6.3 0.9 0.4
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of business unit, net of cash acquired -0.3 -0.7
Disposal of business unit, net of cash acquired -0.6 -0.6
Purchase of property, plant and equipment -1.2 -1.5 -1.2
Purchase of intangible assets -3.7 -0.9 -1.5
Purchase of other investments -0.0 -0.0 -0.1
Sale of property, plant and equipment 0.1 0.1 0.3
Sale of intangible assets 0.0 0.0 0.1
Proceeds from sale of investments 0.2 0.1 0.2
NET CASH FROM INVESTING ACTIVITIES -5.0 -2.8 -3.4
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from borrowing 1.1 1.6
Repayment of borrowing -2.1 -2.6 -3.9
Payment of finance liabilities -2.6 -3.0 -4.1
Distribution of funds from the share premium fund -25.9
NET CASH FROM FINANCING ACTIVITIES -30.6 -4.6 -6.5
NET CHANGE IN CASH AND CASH EQUIVALENTS -29.2 -6.4 -9.5
Cash and cash equivalents at beginning of period 59.1 68.6 68.6
Cash and cash equivalents at end of period 29.8 62.2 59.1
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (MEUR)
A = Share capital
B = Share premium
C = Invested non-restricted equity fund
D = Retained earnings
E = Minority share
F = Total equity
A B C D E F
Equity on January 1, 2009 12.9 64.6 37.6 115.1
Share-related compensation 0.2 0.2
Total comprehensive income for the period -3.4 -3.4
Other items 0.3 0.0 0.3
Equity on Sept. 30, 2009 12.9 64.6 34.7 0.0 112.2
Equity on January 1, 2010 12.9 64.6 34.9 0.4 112.8
Distribution of funds from the share
premium fund -25.9 -25.9
Transfer from the share premium fund -38.7 38.7 0.0
Share-related compensation 0.5 0.5
Total comprehensive income for the period -10.1 -10.1
Other items -0.6 0.7 0.1
Equity on Sept. 30, 2010 12.9 0.0 38.7 24.6 1.2 77.4
NOTES TO THE FINANCIAL STATEMENT BULLETIN
Accounting principles for the Interim Report:
The same accounting policies and methods of computation are followed in the
interim report 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:
Distribution of funds from the share premium fund:
The General Meeting held on March 25, 2010 decided in accordance with the
proposal of the Board of Directors that the shareholders will be distributed EUR
0.20 per share from the parent company's share premium fund, corresponding at
the date of the General Meeting an aggregate amount of EUR 25,882,538 based on
the number of shares. The resolution was booked in group in March 2010.
Transfer of the funds from the share premium fund to the invested non-restricted
equity fund:
The General Meeting decided in accordance with the proposal of the Board of
Directors that the share premium fund in the parent company's balance sheet as
at 31 December 2009 will be decreased by transferring to the company's invested
non-restricted equity fund all the funds remaining in the share premium fund
after the distribution of the share premium fund The resolution was booked in
group in March 2010.
The distribution and decrease required an authorization by the Finnish National
Board of Patents and Registration. The Finnish National Board of Patents and
Registration gave its consent on August 12, 2010 for the distribution of the
share premium fund and the transfer of the funds from the share premium fund to
the invested non-restricted equity fund. On September 2, 2010, the shareholders
were distributed EUR 25,882,538.00 in total from the share premium fund, and
after the distribution, EUR 38,696,853.50 remaining in the share premium fund
was transferred to the invested unrestricted equity fund of the company.
The result of the reporting period comprises statutory provision EUR 8.3 million
related to the TerreStar Network receivables.
Payment of dividend:
The General Meeting held on March 25, 2010 decided in accordance with the
proposal of the Board of Directors that no dividend shall be distributed.
SEGMENT INFORMATION (MEUR)
OPERATING SEGMENTS 1-9/2010 1-9/2009 1-12/2009
9 months 9 months 12 months
Automotive
Net sales to external customers 57.0 44.7 61.5
Net sales to other segments 0.0 0.0
Net sales total 57.0 44.7 61.5
Operating profit (loss) 0.8 -4.0 -3.8
Wireless
Net sales to external customers 62.3 68.6 91.6
Net sales to other segments 0.0 0.2 0.2
Net sales total 62.4 68.7 91.8
Operating profit (loss) -10.4 1.3 1.0
OTHER ITEMS
Other items
Net sales to external customers 0.6 0.4 0.6
Operating profit (loss) 0.0 0.9 1.3
Eliminations
Net sales to other segments -0.0 -0.2 -0.2
Operating profit (loss) 0.0 0.0 0.0
Group total
Net sales to external customers 119.9 113.7 153.8
Operating profit (loss) -9.7 -1.9 -1.4
Net sales of geographical areas (MEUR) 1-9/2010 1-9/2009 1-12/2009
9 months 9 months 12 months
Net sales
Europe 70.2 69.5 91.4
Americas 42.6 35.5 49.2
Asia 7.2 8.8 13.2
Net sales total 119.9 113.7 153.8
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: 1-9/2010 1-9/2009 1-12/2009
Employee benefits for key management and stock
option expenses total 1.8 1.8 2.2
CONSOLIDATED STATEMENT OF 7-9/ 4-6/ 1-3/ 10-12/ 7-9/
COMPREHENSIVE INCOME 2010 2010 2010 2009 2009
BY QUARTER (MEUR) 3 months 3 months 3 months 3 months 3 months
NET SALES 33.7 44.7 41.5 40.1 33.5
Other operating income 0.4 0.8 0.6 1.2 0.9
Change in work in progress and
finished goods 0.2 -0.1 0.1 -0.1 0.4
Work performed by the
undertaking
for its own purpose and
capitalized 0.1 0.1 0.0 0.0 0.0
Raw materials -2.8 -3.2 -3.3 -2.5 -2.1
Personnel expenses -22.5 -24.9 -24.2 -23.3 -20.3
Depreciation -2.2 -2.2 -2.0 -2.2 -2.4
Other operating expenses -18.4 -15.0 -11.1 -12.7 -10.8
OPERATING PROFIT (LOSS) -11.5 0.1 1.7 0.5 -0.8
Financial income and expenses 0.9 -0.8 -1.0 -0.3 0.2
RESULT BEFORE TAXES -10.6 -0.7 0.7 0.1 -0.6
Income taxes 1.6 -0.2 -1.1 -0.4 0.1
RESULT FOR THE PERIOD FROM
CONTINUING OPERATIONS -9.0 -0.9 -0.3 -0.3 -0.5
Result after taxes for the
period
from discontinued operations 1.0 0.3
RESULT FOR THE PERIOD -9.0 -0.9 -0.3 0.7 -0.1
Other comprehensive income
for the period total -1.4 1.2 0.7 0.3 -0.4
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD -10.4 0.3 0.3 1.0 -0.5
Result for the period
attributable to:
Equity holders of the parent -9.0 -0.9 -0.6 0.6 -0.2
Minority interest 0.0 0.0 0.3 0.1 0.0
Total comprehensive income
for the period attributable to:
Equity holders of the parent -10.5 0.3 0.0 0.9 -0.6
Minority interest 0.0 0.0 0.3 0.1 0.0
CONSOLIDATED STATEMENT OF Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
FINANCIAL POSITION (MEUR) 2010 2010 2010 2009 2009
ASSETS
Non-current assets
Property, plant and equipment 10.6 10.8 10.4 11.4 12.2
Goodwill 18.5 18.5 18.5 18.5 18.5
Intangible assets 10.0 9.1 8.8 8.7 8.8
Other financial assets 0.1 0.1 0.3 0.3 0.3
Receivables 0.4 0.4 0.4 0.4 0.8
Deferred tax assets 0.1 0.1 0.1 0.1 0.0
Non-current assets total 39.7 39.1 38.5 39.4 40.7
Current assets
Inventories 2.9 2.5 2.4 2.4 2.6
Trade and other receivables 62.0 65.6 57.3 59.3 55.6
Financial assets at fair
value
through profit or loss 15.8 45.5 50.4 40.2 0.3
Cash and short term deposits 15.0 14.4 16.7 18.8 62.2
Current assets total 95.8 128.0 126.8 120.8 120.7
TOTAL ASSETS 135.5 167.1 165.3 160.2 161.4
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
Invested non-restricted equity
fund 38.7 38.7 38.7
Translation difference 0.3 1.7 0.5 -0.1 -0.4
Retained earnings 24.3 33.3 34.5 35.0 35.1
Minority interest 1.2 1.1 0.7 0.4 0.0
Total equity 77.4 87.8 87.4 112.8 112.2
Non-current liabilities Deferred tax liabilities 1.2 1.7 2.3 2.3 2.2
Provisions 0.6 0.6 0.8 0.9 1.3
Interest-bearing liabilities 8.9 10.5 10.4 11.8 12.5
Other liabilities 0.0 0.1
Non-current liabilities total 10.7 12.8 13.5 15.0 16.2
Current liabilities
Trade and other payables 32.1 59.3 56.9 24.4 24.5
Financial liabilities at fair
value
through profit or loss 0.0 0.4 0.4
Pension obligations 1.2 1.1 1.2 1.2 1.2
Provisions 9.1 1.1 1.2 1.5 1.9
Interest-bearing loans and
Borrowings (non-current) 5.1 5.0 4.6 4.9 5.2
Current liabilities total 47.4 66.5 64.4 32.4 32.9
Total liabilities 58.1 79.3 77.9 47.3 49.1
TOTAL EQUITY AND LIABILITIES 135.5 167.1 165.3 160.2 161.4
7-9/ 4-6/ 1-3/ 10-12/ 7-9/
CONSOLIDATED STATEMENT
OF CASH FLOWS BY QUARTER 2010 2010 2010 2009 2009
3 months 3 months 3 months 3 months 3 months
Net cash from operating
activities 0.2 -4.5 10.6 -0.5 4.6
Net cash from investing
activities -2.6 -1.4 -0.9 -0.7 -0.7
Net cash from financing
activities -27.8 -1.1 -1.7 -1.9 -2.1
Net change in cash and cash
equivalents -30.1 -7.1 8.0 -3.1 1.8
FINANCIAL PERFORMANCE RELATED RATIOS 1-9/2010 1-9/2009 1-12/2009
9 months 9 months 12 months
STATEMENT OF COMPREHENSIVE INCOME (MEUR)
Net sales 119.9 113.7 153.8
Operating profit (loss) -9.7 -1.9 -1.4
Operating profit (loss), % of net sales -8.0 -1.7 -0.9
Result before taxes -10.6 -2.2 -2.0
Result before taxes, % of net sales -8.8 -1.9 -1.3
Result for the period -10.2 -3.1 -3.3
PROFITABILITY AND OTHER KEY FIGURES
Interest-bearing net liabilities, (MEUR) -15.9 -44.4 -42.4
Net gearing, -% -20.5 -39.5 -37.6
Equity ratio, % 62.7 71.1 71.5
Gross investments, (MEUR) 7.0 2.4 4.0
Average personnel during the period 1559 1610 1589
Personnel at the period end 1584 1556 1528
AMOUNT OF SHARE ISSUE ADJUSTMENT Sept. 30, Sept. 30, Dec. 31,
(1,000 pcs) 2010 2009 2009
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 130 376 129 466 129 580
1-9/2010 1-9/2009 1-12/2009
STOCK-RELATED FINANCIAL RATIOS (EUR)
9 months 9 months 12 months
Basic earnings per share -0.08 -0.02 -0.03
Diluted earnings per share -0.08 -0.02 -0.03
Equity *) per share 0.59 0.87 0.87
*) Equity attributable to equity holders of the
parent
MARKET VALUES OF SHARES (EUR) 1-9/2010 1-9/2009 1-12/2009
Highest 1.25 0.80 1.40
Lowest 0.83 0.33 0.33
Average 1.05 0.52 0.62
At the end of period 0.84 0.75 0.94
Market value of the stock, (MEUR) 108.7 97.1 121.6
Trading value of shares, (MEUR) 10.6 7.0 11.1
Number of shares traded, (1,000 pcs) 10 091 13 360 17 822
Related to average number of shares % 7.8 10.3 13.8
SECURITIES AND CONTINGENT LIABILITIES Sept. 30, Sept. 30, Dec. 31,
(MEUR) 2010 2009 2009
AGAINST OWN LIABILITIES
Floating charges 3.1 3.3 3.1
Pledges 2.4 0.9 1.0
Mortgages are pledged for liabilities totaled 6.5 8.8 8.6
AGAINST OTHER LIABILITIES
Guarantees 4.5 2.8 3.8
Other liabilities 10.1
OTHER DIRECT AND CONTINGENT LIABILITIES
Rental liabilities
Falling due in the next year 5.6 5.1 5.9
Falling due after one year 17.2 15.1 17.9
Other contractual liabilities
Falling due in the next year 3.3 4.2 4.3
Falling due after one year 0.3 1.0 0.7
NOMINAL VALUE OF CURRENCY DERIVATIVES Sept. 30, Sept. 30, Dec. 31,
(MEUR) 2010 2009 2009
Foreign exchange forward contracts
Market value 0.7 0.1 -0.3
Nominal value 12.0 2.0 11.0
Purchased currency options
Market value 0.8 0.4 0.1
Nominal value 8.0 8.5 11.5
Sold currency options
Market value -0.5 -0.1 -0.1
Nominal value 16.0 17.0 23.0
[HUG#1456341]
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