2013-03-05 08:00:02 CET
2013-03-05 08:00:07 CET
REGULATED INFORMATION
Efore - Interim report (Q1 and Q3)
EFORE GROUP INTERIM REPORT NOVEMBER 1, 2012 – JANUARY 31, 2013 (3 MONTHS)
Espoo, Finland, 2013-03-05 08:00 CET (GLOBE NEWSWIRE) -- EFORE PLC Interim
Report March 5, 2013 9.00 a.m.
First quarter in brief (November 1, 2012 — January 31, 2012)
- Net sales amounted to EUR 13.7 million (EUR 14.8 million)
- Results from operating activities amounted to EUR -1.6 million (EUR -0.8
million)
- Result before taxes was EUR -1.5 million (EUR -1.2 million)
- Result for the period was EUR -1.3 million (EUR -1.1 million)
- Earnings per share was EUR -0.03 (EUR -0.03)
Vesa Vähämöttönen, Efore's President and CEO:
“First quarter result was weak due to the significantly lower than forecasted
demand of the key customers in telecom sector although demand for industrial
electronics was on expected level. Efore continues the strategic actions
targeting to the substantial growth of industrial sector.
In order to be able to face the demand fluctuations of telecom sector Efore
starts a profitability and efficiency improvement program targeting to annual
cost base reduction of at least EUR 1.5 million by the end of this year.”
NET SALES AND FINANCIAL DEVELOPMENT FOR THE FIRST QUARTER
Net sales for the first quarter totaled EUR 13.7 million (EUR 14.8 million).
Net sales by customer group amounted to as follows: Telecommunication 68.5 %
(73.0 %) and industrial electronics 31.5 % (27.0 %). Geographically Efore's
deliveries were to the following areas: EMEA EUR 7.7 million (EUR 6.6 million),
APAC EUR 3.3 million (EUR 5.5 million), Finland EUR 2.6 million (EUR 2.5
million) and the Americas EUR 0.1 million (EUR 0.3 million) which totaled EUR
13.7 million (EUR 14.8 million). Final geographical distribution of Efore's
products deviates from the before mentioned as Efore's customers distribute
further the products from the logistics centres to other markets.
The results from operating activities amounted to EUR -1.6 million (EUR -0.8
million).
BUSINESS DEVELOPMENT
Investment in product and technology development during the period under the
review was EUR 1.8 million (EUR 1.7 million) representing 13.1 % (11.8 %) of
net sales. Clearly majority of this amount was spent in telecom sector as EV
power product family is mainly ready for the market demand.
First quarter result was weak due to the significantly lower than forecasted
demand of the key telecom customers although demand for industrial electronics
was on expected level. Efore continues the strategic actions targeting to the
substantial growth of industrial sector.
INVESTMENTS
Group investments in fixed assets during the period under review amounted to
EUR 0.7 million (EUR 0.7 million). At the end of the period under review
capitalized product development costs amounted to EUR 0.5 million (EUR 0.8
million).
FINANCIAL POSITION
The Group's financial position during the fiscal year was good.
The consolidated interest-bearing cash reserves exceeded interest-bearing
liabilities by EUR 0.6 million (EUR 3.1 million). The consolidated net
financial expenses were EUR 0.1 million (EUR -0.4 million). The cash flow from
business operations was EUR -0.8 million (EUR -0.1 million). The cash flow
after investments was EUR -1.1 million (EUR -0.8 million).
The Group's solvency ratio was 46.6 % (54.0 %) and the gearing was -2.9 %
(-13.0 %) at the end of the period under review.
Liquid assets excluding undrawn credit facilities amounted to EUR 5.2 million
(EUR 9.4 million) at the end of the period under review. The balance sheet
total was EUR 40.3 million (EUR 44.7 million).
PERSONNEL
The number of the Group's own personnel including temporary personnel averaged
788 (808) during the period under review and at the end of the period under
review it was 825 (794).
SHARES, SHARE CAPITAL AND SHAREHOLDERS
The total number of Efore Plc shares at the end of the period under review was
42.529.648 and the registered share capital was EUR 15.000.000.
The amount of the Group's own shares was 1,218,544 at the end of the period
under review. In addition to this Efore Management Oy, a company belonging to
Efore group owned 2.358.242 pcs of Efore shares.
The highest share price during the period under review was EUR 0.80 and the
lowest price was EUR 0.66. The average price during the period under review was
EUR 0.70 and the closing price was EUR 0.72. The market capitalization
calculated at the final trading price during the period under review was EUR
28.0 million.
The total number of Efore shares traded on the Nasdaq OMX Helsinki during the
period under review was 2.2 million and their turnover value was EUR 1.6
million. This accounted for 5.2 % of the total number of shares. The number of
shareholders totaled 3195 (3348) at the end of the period under review.
DECISIONS OF THE ANNUAL GENERAL MEETING
A separate stock exchange bulletin has been issued on resolutions of the Annual
General Meeting of Shareholders and the authorizations granted for the Board of
Directors on February 8, 2013.
ACCOUNTING POLICIES
The report has been drawn up in accordance with IAS 34 Standard on Interim
Financial Reporting and the Group's accounting principles presented in the 2012
annual report. The information in this release is unaudited.
All the figures in the report have been rounded up/down, for which reason the
total of the individual figures when added together may be different from the
total shown.
SHORT-TERM RISKS AND FACTORS OF UNCERTAINTY
The market typical fluctuation in demand can cause rapid changes in Efore's
business. The most significant business risks are related to the success of
key customers in their markets and to Efore's delivery capability for the key
customers.
Progress of the EV power electronics projects depends on the customers' own
project schedules and the establishment of the whole market.
It has been recognized that global economic development may effect negatively
on Efore's business environment
A more comprehensive report on risk management is presented on the company's
web-sites.
EVENTS AFTER THE PERIOD UNDER REVIEW
On March 5, 2013 Efore announced it will start profitability and efficiency
improvement program targeting to annual cost base reduction of at least EUR 1.5
million by the end of this year.
The aim of program is to streamline Efore's operations and organization to
improve the capability to face the demand fluctuations.
As part of the program Efore commences labor negotiations with its entire
personnel in all locations. According to a preliminary estimate, a reduction in
personnel of at most 75 employees will be required of which at most 15 in
Finland. In Finland, in addition to permanent layoffs, negotiations will be
conducted on possible temporary layoffs affecting all personnel groups.
OUTLOOK
The fundamentals for long-term positive development of wireless network
equipment industry are expected to remain unchanged. However, due to the short
term demand fluctuations and recent financial results Efore has started the
profitability and efficiency improvement program.
Industrial sector offers several growth areas and Efore continues to expand its
expertise and presence in these markets.
FINANCIAL ESTIMATE FOR THE FISCAL YEAR 2013
Although the long term outlook is positive, due to the uncertainties in the
global economy combined with the telecom market fluctuation and customers'
ordering practices it is not possible to provide a reliable financial estimate
for the fiscal year 2013.
However, based on the available information company estimates its net sales to
be on the same level with previous year.
Net sales is estimated for the corresponding period as Efore's previous fiscal
year.
TABLES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million Nov./1 Nov./1 Nov./11
2- 1- -
Jan./1 Jan./ Oct./12
3 12
3 3 12
months months months
Net sales 13,7 14,8 78,1
Change in inventories of
finished goods and work in progress 1,5 0,6 2,3
Other operating income 0,0 0,4 0,6
Materials and services -10,9 -10,6 -55,9
Employee benefits expenses -3,5 -3,5 -15,9
Depreciation -0,6 -0,8 -3,0
Other operating expenses -1,8 -1,8 -8,8
RESULTS FROM OPERATING ACTIVITIES -1,6 -0,8 -2,6
% net sales -11,4 -5,7 -3,3
Financing income 0,5 0,4 1,7
Financing expenses -0,4 -0,8 -2,1
RESULT BEFORE TAX -1,5 -1,2 -3,0
% net sales -10,7 -8,3 -3,9
Tax on income from operations 0,1 0,2 0,7
RESULT FOR THE PERIOD -1,3 -1,1 -2,3
OTHER COMPREHENSIVE INCOME:
Translation differences -0,6 1,0 1,4
Total comprehensive income -1,9 0,0 -0,9
NET PROFITT/lOSS ATTRIBUTABLE
To equity holders of the parent -1,3 -1,1 -2,3
To non-controlling interest 0,0 0,0 -0,1
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
Equity holders of the parent -1,9 0,0 -0,9
Non-controlling interest 0,0 0,0 -0,1
EARNINGS PER SHARE CALCULATED ON PROFIT ATTRIBUTABLE TO
EQUITY HOLDERS OF THE PARENT:
Earnings per share, basic,eur -0,03 -0,03 -0,06
Earnings per share, diluted, eur -0,03 -0,03 -0,06
INFORMATION ABOUT GEOGRAPHICAL Nov./1 Nov./1 Nov./11
2- 1- -
AREAS, EUR million Jan./1 Jan./ Oct./12
3 12
3 3 12
months months months
Americas 0,1 0,3 1,3
EMEA 7,7 6,6 42,0
FINLAND 2,6 2,5 11,1
APAC 3,3 5,5 23,8
Total 13,7 14,8 78,1
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
EUR million Jan. 31, Jan. 31, change Oct.31,
2013 2012 % 2012
ASSETS
NON-CURRENT ASSETS
Intangible assets 1,2 1,4 0,9
Tangible assets 5,7 7,1 6,1
Trade receivables and other receivables, 0,6 0,0 0,3
non-current
Other long-term investments 0,0 0,0 0,0
Deferred tax asset 1,1 0,0 0,9
NON-CURRENT ASSETS 8,6 8,5 1,1 8,3
CURRENT ASSETS
Inventories 16,2 14,2 14,2
Trade receivables and other receivables 10,3 12,3 16,4
Tax receivable, income tax 0,0 0,4 0,0
Cash and cash equivalents 5,2 9,4 4,5
CURRENT ASSETS 31,7 36,2 -12,3 35,0
ASSETS 40,3 44,7 -9,8 43,3
EQUITY AND LIABILITIES
EQUITY
Share capital 15,0 15,0 15,0
Treasury shares -2,5 -2,1 -2,5
Other reserves 19,8 21,9 19,8
Translation differences 1,4 1,6 2,0
Retained earnings -15,2 -12,6 -13,9
Equity attributable to equity holders of 18,6 23,8 20,4
the parent
Equity attributable to non-controlling 0,2 0,3 0,2
interests
EQUITY 18,8 24,1 -22,1 20,7
NON-CURRENT LIABILITIES
Deferred tax liabilities 0,0 0,0 0,0
Interest-bearing liabilities 1,6 3,1 1,5
NON-CURRENT LIABILITIES 1,6 3,1 -47,3 1,5
CURRENT LIABILITIES
Interest-bearing liabilities 3,0 3,2 0,6
Trade payables and other liabilities 16,8 13,9 19,7
Tax liabilities 0,0 0,0 0,0
Provisions 0,1 0,3 0,8
CURRENT LIABILITIES 19,9 17,5 21,1
LIABILITIES 21,5 20,6 22,6
TOTAL EQUITY AND LIABILITIES 40,3 44,7 -9,8 43,3
GROUP KEY FIGURES, EUR million Nov./12- Nov./11- Nov./11-
Jan./13 Jan./ 12 Oct./12
3 months 3 months 12 months
Earnings per share, basic,eur -0,03 -0,03 -0,06
Earnings per share, diluted, eur -0,03 -0,03 -0,06
Equity per share, eur 0,48 0,60 0,52
Solvency ratio,% 46,6 54,0 47,7
Return on equity-%(ROE) -26,7 -17,5 -10,5
Return on investment-%(ROI) -22,6 -14,5 -9,9
Gearing, % -2,9 -13,0 -11,3
Net interest-bearing liabilities -0,6 -3,1 -2,3
Investments (intangible and tangible assets) 0,7 0,7 1,8
as percentage of net sales 5,2 4,7 2,4
Average personnel 788 808 888
CONSOLIDATED STATEMENT OF CASH FLOWS Nov./12 Nov./11 change Nov./11
- - -
EUR million Jan. Jan./12 % Oct./12
/13
Cash flows from operating activities
Cash receipts from customers 20,1 21,8 83,9
Cash paid to suppliers and employees -20,8 -21,6 -81,3
Cash generated from operations -0,7 0,3 2,7
Interest paid 0,0 0,0 -0,3
Interest received 0,0 0,0 0,0
Other financial items -0,1 -0,4 0,5
Income taxes paid 0,0 0,0 -0,2
Net cash from operating activities (A) -0,8 -0,1 549,4 2,6
Cash flows from investing activities
Purchase of tangible and intangible assets -0,3 -0,7 -1,7
Proceeds from sale of tangible and intangible 0,0 0,0 0,2
assets
Disposal of associated companies 0,0 0,0 0,0
Dividend received and repayment of capital 0,0 0,0 0,0
Net cash used in investing activities (B) -0,3 -0,7 -59,7 -1,6
Cash flows from financing activities
Capital investment by the minority 0,0 0,0 0,0
Purchase of treasury shares 0,0 0,0 -0,5
Proceeds from short-term borrowings 2,4 0,0 1,8
Repayment of short-term borrowings 0,0 -1,1 -5,5
Proceeds from long-term borrowings 0,0 0,0 0,0
Repayment of long-term borrowings -0,3 -0,3 -1,7
Financial leasing repayment 0,0 0,0 -0,2
Distribution of assets from invested 0,0 0,0 -2,1
unrestricted equity
Net cash used in financing activities (C) 2,1 -1,3 -8,1
Net increase/decrease in cash and cash
equivalents (A+B+C) 1,1 -2,1 -7,1
Cash and cash equivalents at beginning of 4,5 11,2 11,2
period on Nov.1
Net increase/decrease in cash and cash 1,1 -2,1 -7,1
equivalents
Effects of exchange rate fluctuations on cash -0,4 0,3 0,4
held
Cash and cash equivalents at end of period on 5,2 9,4 4,5
Jan. 31
GROUP CONTINGENT LIABILITIES Jan. Jan. Oct.
31, 31, 31,
EUR million 2013 2012 2012
Security and contingent liabilities
For others
Other contingent liabilities 0,1 0,1 0,1
Operating lease commitments
Group as lessee
Non-cancellable minimum operating lease
payments:
Less than 1 year 1,2 1,1 0,7
1-5 years 0,4 0,6 0,5
Fair values of derivate financial instruments
Currency derivatives, not hedge
Option contract
Nominal amount 0,7 5,4 0,8
Negative fair value 0,0 0,0 0,0
THE FOLLOWING TRANSACTIONS WERE Jan. Jan. Oct.
31, 31, 31,
CARRIED OUT WITH RELATED PARTIES: 2013 2012 2012
EUR million
Associated companies
Purchases 0,0 0,0 0,0
Liabilities 0,0 0,0 0,0
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A Share capital
B Treasury shares
C Unrestricted equity reserve
D Other reserves
E Translation differences
F Retained earnings
G Equity holders of the parent
H Non-controlling interests
I Total
EUR million A B C D E F G H I
Equity 15,0 -2,1 20,9 1,0 0,6 -11,6 23,8 0,3 24,1
Nov.1, 2011
Comprehensive income 0,0 0,0 0,0 0,0 1,0 -1,0 0,0 0,0 0,0
Capital invest by the 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
minority
Equity 15,0 -2,1 20,9 1,0 1,6 -12,6 23,8 0,3 24,1
January 31, 2012
EUR million A B C D E F G H I
Equity 15,0 -2,5 18,8 1,0 2,0 -13,9 20,4 0,2 20,7
Nov.1, 2012
Comprehensive income 0,0 0,0 0,0 0,0 -0,6 -1,3 -1,9 0,0 -1,9
Capital invest by the 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
minority
Equity 15,0 -2,5 18,8 1,0 1,4 -15,2 18,6 0,2 18,8
January 31, 2013
CALCULATION OF
KEY
FIGURES AND
RATIOS
Return on = Profit before taxes+interest and other financing x 100
investment expenses /
(ROI), % (Equity + interest-bearing liabilities, average )
Return on Equity = Profit/loss for the period / Equity (average ) x 100
(ROE), %
Current ratio = Current assets / Current liabilities
Solvency ratio, % = Equity / (Total assets - advance payments received x 100
- own shares*)
Net = Interest-bearing liabilities - financial assets at
interest-bearing fair value through profit or loss - cash and cash
liabilities equivalents
Gearing, % = Net interest-bearing liabilities / Equity x 100
Earnings per = Profit or loss attributable to ordinary equity
share holders of the parent entity/ The weighted average
number of ordinary shares outstanding
Earnings per Profit or loss attributable to ordinary equity
share (dil) holders of the parent entity / The weighted
average number of diluted shares outstanding
Dividend per = Dividend for the financial year / (Number of shares - own
share shares*)
Dividend payout = Dividend per share / Earnings per share x 100
ratio, %
Effective = Dividend per share /Adjusted share price at x 100
dividend yield, balance sheet date
%
Equity per share = Equity - own shares* /Number of shares at balance sheet date
P/E-ratio = Adjusted share price at balance sheet date /
Earnings per share
Market = Adjusted share price at balance sheet date x
capitalization = outstanding number of shares at balance sheet
date
Average personnel = The average number of employees at the end of
each calendar month during the accounting
period
All share-specific figures are based on the issue-adjusted number of
shares.
Equity is the equity owned by the holders of the parent company's
shares. Profit for the period is the fiscal period profit
attributable to equity holders of the parent.
* There were own shares held by company January 31, 2013.
EFORE PLC
Board of Directors
For further information please contact Mr.Vesa Vähämöttönen, President and CEO,
on March 5, 2013 at 10 - 11 a.m., tel. +358 9 4784 6312
Efore Plc will hold a news conference regarding the report for analysts and
media on March 5, 2013 at 11 a.m. in Helsinki World Trade Center, address
Aleksanterinkatu 17.
DISTRIBUTION Nasdaq OMX Helsinki Oy
Principal media
Efore Group
Efore Group is an international company which develops and produces demanding
power products. Efore's head office is based in Finland and its production unit
is located in China. Efore is present also in Sweden. In the fiscal year ending
in October 2012, consolidated net sales totaled EUR 78,1 million and the
Group's personnel averaged 888. The company's share is quoted on the Nasdaq OMX
Helsinki Ltd.
www.efore.com
Vesa Vähämöttönen, President and CEO, tel. +358 9 4784 6312
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