2014-11-06 07:00:00 CET
2014-11-06 07:01:37 CET
REGULATED INFORMATION
Elektrobit Oyj - Interim report (Q1 and Q3)
Elektrobit Corporation's (EB) Interim Report January-September 2014
tock exchange release
Free for publication on November 6, 2014 at 8.00 a.m. (CET+1)
Elektrobit Corporation's (EB) Interim Report January-September 2014
IN JANUARY-SEPTEMBER 2014 NET SALES GREW AND OPERATING PROFIT IMPROVED FROM THE
PREVIOUS YEAR
The 2013 figures presented in comparison in this interim report include the
figures of Continuing Operations only.
SUMMARY JULY - SEPTEMBER 2014
* Net sales of July - September 2014 grew to EUR 52.5 million (EUR 45.7
million, 3Q 2013), representing an increase of 14.9 % year-on-year.
* Operating profit was EUR 4.6 million, including non-recurring income of EUR
1.1 million resulting from the reorganization cases of TerreStar companies
(EUR 1.0 million, 3Q 2013).
* Net cash flow was EUR 9.8 million (EUR 1.8 million, 3Q 2013).
* Earnings per share were EUR 0.020 (EUR 0.006, 3Q 2013).
* The number of EB's shares increased during the reporting period by
altogether 51 296 new shares subscribed by virtue of the stock option rights
2008B and 2008C. At the end of the period, the number of shares in
Elektrobit Corporation totaled 131 242 492.
* In July EB signed a EUR 10 million credit facility agreement with Nordea
Bank Finland Plc and a EUR 10 million credit facility agreement with Pohjola
Bank Plc. These agreements, intended for general financing purposes, are
valid until June 30, 2017 and include conventional covenants that are, among
others, related to equity ratio, transfer and pledge of the assets.
* In July Elektrobit Inc., a subsidiary of Elektrobit Corporation, entered
into a conditional agreement of settlement with the liquidating trust of
TerreStar Networks Inc. (TSN). The United States Bankruptcy Court approved
the conditional agreement and on August 28, 2014, U.S. time, EB received a
cash payment of USD 1 075 000 (EUR 0.8 million as per exchange rate of
August 28, 2014) in full and final satisfaction of its claims against TSN
and in resolution of all disputes between EB and the liquidating trust of
TSN. The Settlement Payment results in a non-recurring positive effect of
approximately EUR 0.8 million on Elektrobit Corporation's operating result
and in a positive effect on Elektrobit Corporation's cash flow of
approximately EUR 0.8 million in the third quarter 2014.
* According to the information received by EB in September, Parrot S.A., a
supplier of e.solutions GmbH, a jointly owned company of EB and AUDI, has
withdrawn the legal proceeding taken against e.solutions GmbH in the
Tribunal de Commerce de Paris (Commercial Court Paris) in April 2014. In the
claim Parrot S.A. requested to collect damages in the amount of
approximately EUR 18.4 million for loss of profit and reputational damage.
However, it is possible, that despite of the withdrawal, Parrot S.A.'s may
initiate further legal actions in another forum.
* After the reporting period Elektrobit Inc., a subsidiary of Elektrobit
Corporation, entered into settlement with Internal Revenue Service (IRS)
concerning tax treatment of impairment of receivables from TerreStar
companies booked in 2010. As a result of the approval of the proposal
Elektrobit Inc. will pay IRS USD 1.4 million (EUR 1.1 million as per
exchange rate of October 8, 2014) taxes including interests for fiscal year
2010 and at the same time will submit a carryback claim of USD 1.3 million
(EUR 1.0 million as per exchange rate of October 8, 2014) for fiscal year
2011. The payment to IRS will be made in the fourth quarter of 2014 and the
carryback refund, if the claim will be approved, is estimated to be received
at the latest by the end of 2015.
* The settlement payment received in August formed the full and final
satisfaction of Elektrobit Inc.'s laid and open claims against TerreStar
companies in their reorganization cases. In consequence of receiving the
full and final settlement payment and finishing of the tax appeal process,
EB's activities related to TerreStar reorganization processes are expected
to be concluded. EB reverses the remaining EUR 0.3 million provision made
for legal and consulting costs. The reversal of the provision and the EUR
0.8 million settlement payment have together approximately EUR 1.1 million
non-recurring positive effect on EB's third quarter 2014 operating result.
SUMMARY JANUARY - SEPTEMBER 2014
* Net sales of January - September 2014 grew to EUR 156.4 million (EUR 139.8
million, 1-9 2013), representing an increase of 11.9 % year-on-year.
* Operating profit was EUR 9.6 million including non-recurring income of EUR
1.1 million resulting from the reorganization cases of TerreStar companies
(EUR 2.4 million, 1H-9 2013, including non-recurring costs of approximately
EUR 0.8 million resulting from the cost saving measures in the Wireless
Business Segment).
* Net cash flow was EUR -2.3 million (EUR 29.6 million, 1-9 2013, including
non-recurring net cash flow of about EUR 28 million resulting from the sale
of the Test Tools product business).
* Earnings per share were EUR 0.047 (EUR 0.012, 1-9 2013).
Group (MEUR) 3Q 14 3Q 13 1-9 14 1-9 13 2013
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NET SALES 52.5 45.7 156.4 139.8 199.3
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Change of net sales, % 14.9 % 10.1 % 11.9 % 11.3 % 14.6 %
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OPERATING PROFIT / LOSS 4.6 1.0 9.6 2.4 8.1
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Operating profit / loss, % of net sales 8.7 % 2.3 % 6.1 % 1.7 % 4.1 %
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Operating profit /loss without non- 3.5 1.0 8.4 3.3 9.0
recurring items
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EBITDA 6.7 3.3 15.9 9.1 17.2
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CASH AND OTHER LIQUID ASSETS 40.7 43.9 40.7 43.9 43.0
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EQUITY RATIO (%) 64.0 % 63.9 % 64.0 % 63.9 % 65.1 %
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EARNINGS PER SHARE (EUR) 0.020 0.006 0.047 0.012 0.051
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Automotive Business Segment (MEUR) 3Q 14 3Q 13 1-9 14 1-9 13 2013
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NET SALES 42.5 34.1 119.8 97.2 138.3
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Change of net sales, % 24.5 % 24.5 % 23.3 % 23.4 % 25.0 %
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OPERATING PROFIT / LOSS 3.5 1.9 10.6 3.1 8.5
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Operating profit / loss, % of net sales 8.3 % 5.7 % 8.8 % 3.2 % 6.2 %
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EBITDA 5.0 3.5 15.1 7.6 14.6
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Wireless Business Segment (MEUR) 3Q 14 3Q 13 1-9 14 1-9 13 2013
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NET SALES 10.0 11.6 36.7 42.8 61.2
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Change of net sales, % -13.2 % -17,.9 % -14.3 % -9.2 % -3.7 %
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OPERATING PROFIT / LOSS 1.1 -0.9 -0.9 -0.8 -0.5
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Operating profit / loss, % of net sales 10.8 % -7.9 % -2.6 % -1.8 % -0.8 %
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Operating profit /loss without non- -0.1 -0.9 -2.1 0.1 0.4
recurring items
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EBITDA 1.7 -0.2 0.9 1.4 2.5
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EB'S CEO JUKKA HARJU"EB's net sales and operating profit continued to grow from previous year also
during the third quarter. During January - September EB's net sales grew by
11.9 per cent year-on-year to EUR 156.4 million. Operating profit improved
clearly from the previous year and was EUR 8.4 million without the non-recurring
income of EUR 1.1 million in the third quarter. The reason for the improved net
sales and operating profit was the good development of Automotive Business
Segment.
In Automotive Business Segment, the demand for EB's software products and R&D
services remained good as car makers invested in the development of new car
models. Net sales of Automotive Business Segment grew strongly by 23.3 % from
the previous year and operating profit improved to 8.8 % of net sales. The
improvement of the operating profit was driven by the good performance in
services projects, the growth of software license sales especially for the in-
car navigation software and the lower R&D investments.
The net sales of the Wireless Business Segment decreased by 14.3 % from the
previous year due to the decreased demand for R&D services for mobile
telecommunications network equipment and other markets. The product-based sales
increased clearly from the previous year to EUR 7.8 million, which however did
not fully compensate the decreased services sales. In the fourth quarter, in the
Wireless Business Segment we expect the product-based sales to be generated
mainly from the Finnish authority markets and the net sales resulting from the
international defense and other authority markets to remain low due to these
customers' slower than estimated purchase decisions. Operating result during the
reporting period was lower than targeted and negative due to the weak result of
the first half of the year. In the second half of the year, we expect the
Wireless Business Segment to develop positively and its operating result to be
profitable.
During the autumn, EB concluded its measures to collect the receivables from
TerreStar companies based in the US in their reorganization cases, and entered
into a settlement with US Internal Revenue Services (IRS) concerning tax
treatment of impairment of receivables from TerreStar companies. These resulted
in a non-recurring income of EUR 1.1 million in the third quarter of 2014.
Our main target in 2014 is to grow net sales and operating profit from the
previous year and EB is in a good position to achieve this target."
OUTLOOK FOR 2014
For the year 2014 EB expects that the net sales and operating result will grow
from the previous year (net sales of EUR 199.3 million and operating profit of
EUR 8.1 million, in 2013). Net sales growth rate in 2014 is expected to be
slower than in the previous year (net sales growth 14.6 %, 2013). Operating
profit in the second half of the year is expected to be higher than in the first
half (operating profit of EUR 5.0 million, 1H 2014).
The demand for R&D services and software products of the Automotive Business
Segment is expected to continue good in the second half of the year, and
operating profit of Automotive Business Segment is expected to be at the same
level or better than in the first half of the year (operating profit of EUR 7.1
million, 1H 2014). In the Wireless Business Segment, operating result without
the non-recurring income of EUR 1.1 million resulting from the reorganization
cases of TerreStar companies is expected to be positive in the second half of
2014 (operating loss of EUR -2.0 million, 1H 2014). In the last quarter in the
Wireless Business Segment we expect the product-based net sales to come mainly
from the Finnish authorities and the product-based net sales from international
defense and other authority markets to remain low due to the customers' slower
than estimated purchase decisions.
More specific market outlook is presented under the sections "Market outlook for
the Automotive Business Segment" and "Market outlook for the Wireless Business
Segment".
Following the same principle as in the previous guidance, the non-recurring
income of EUR 1.1 million resulted from the reorganization cases of TerreStar
companies, has not been included in the outlook for 2014.
More information about other uncertainties regarding the outlook is presented in
the sections "Risks and uncertainties" and "Events after the review period", and
in the Report by the Board of Directors 2013, available at
http://annualreport.elektrobit.com.
INVITATION TO A PRESS CONFERENCE
EB will hold a press conference on the January-September 2014 Interim Report for
media, analysts and institutional investors in in Restaurant Savoy,
Eteläesplanadi 14, Helsinki, Finland, on Thursday, November 6, 2014, at 11.00
a.m. (CET+1). The conference will also be held as a conference call and the
presentation will be shown simultaneously in the Internet through GlobalMeet.
The conference will be held in English. For more information please go to
www.elektrobit.com/investors.
ELEKTROBIT CORPORATION (EB)
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 in 2013 totaled EUR 199.3
million and the operating profit was EUR 8.1 million, in 2013. Elektrobit
Corporation is listed on NASDAQ OMX Helsinki. www.elektrobit.com.
ELEKTROBIT CORPORATION (EB) INTERIM REPORT JANUARY-SEPTEMBER 2014
2013 figures presented in comparison in this interim report include only figures
of Continuing Operations.
FINANCIAL PERFORMANCE DURING JANUARY-SEPTEMBER 2014
EB's net sales during January-September 2014 grew by 11.9 per cent year-on-year
to EUR 156.4 million (EUR 139.8 million, 1-9 2013). Operating profit was EUR
9.6 million including EUR 1.1 million non-recurring income resulting from the
reorganization cases of TerreStar companies (EUR 2.4 million, 1-9 2013,
including the non-recurring cost of approximately EUR 0.8 million resulting from
the cost saving measures in the Wireless Business Segment).
Net sales of the Automotive Business Segment in January-September 2014 grew to
EUR 119.8 million (EUR 97.2 million, 1-9 2013), representing 23.3 per cent
growth year-on-year. Operating profit improved clearly from the previous year
and was EUR 10.6 million (EUR 3.1 million, 1-9 2013). The demand for EB's
software products and R&D services remained good, including the jointly owned
company e.solutions GmbH. The improvement of the operating profit was driven
mainly by the good performance in services projects, the growth of software
license sales especially for the in-car navigation software and the lower R&D
investments.
The Wireless Business Segment's net sales in January-September 2014 decreased by
14.3 per cent year-on-year, to EUR 36.7 million (EUR 42.8 million, 1-9 2013).
The share of the product-based net sales was EUR 7.8 million, which resulted
mainly from the product deliveries of the tactical communication system to the
Finnish Defence Forces and from the delivery of a batch of special terminal
products for the authority use to a customer abroad. The operating loss of the
Wireless Business Segment in January-September 2014 was EUR -0.9 million,
including EUR 1.1 million non-recurring income resulting from the reorganization
cases of TerreStar companies (EUR -0.8 million, 1-9 2013, including the non-
recurring cost of approximately EUR 0.8 million resulting from the cost saving
measures in Wireless Business Segment). The decrease in the net sales year-on-
year and lower than expected operating result were due to the decline in the
demand for R&D services for mobile telecommunications network equipment and
other markets, which decline the increased product-based net sales did not fully
compensate.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (MEUR) 1-9 2014 1-9 2013
9 months 9 months
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CONTINUING OPERATIONS
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Net sales 156.4 139.8
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Operating profit / loss 9.6 2.4
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Financial income and expenses -0.6 -0.7
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Result before tax 9.0 1.8
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RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS 6.2 1.6
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RESULT FOR THE PERIOD FROM DISCONTINUING OPERATIONS 24.3
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RESULT FOR THE PERIOD 6.2 25.9
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TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 6.6 26.0
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Result for the period attributable to:
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Equity holders of the parent 6.2 25.9
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Non-controlling interests
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Total comprehensive income for the period attributable to:
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Equity holder of the parent 6.6 26.0
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Non-controlling interests
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Earnings per share from continuing operations, EUR 0.047 0.012
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* Cash flow from operating activities was EUR 5.1 million (EUR 8.7 million,
1-9 2013).
* Net cash flow was EUR -2.3 million (EUR 29.6 million, 1-9 2013, including
non-recurring net cash flow of about EUR 28 million resulting from the sale
of the Test Tools product business).
* Equity ratio was 64.0 % (63.9 %, September 30, 2013).
* Net gearing was -38.9 % (-29.8 %, September 30, 2013).
QUARTERLY FIGURES
Elektrobit Group's net sales and operating result, MEUR:
3Q 14 2Q 14 1Q 14 4Q 13 3Q 13
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Net sales 52.5 52.2 51.7 59.5 45.7
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Operating profit (loss) 4.6 3.1 1.9 5.7 1.0
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Operating profit (loss) without non-recurring 3.5 3.1 1.9 5.7 1.0
costs
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Result before taxes 4.2 2.8 1.9 5.5 0.9
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Result for the period 2.6 1.8 1.7 5.0 0.8
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Non-recurring items are exceptional gains and costs that are not related to
normal business operations and occur only seldom. These items include capital
gains or losses, significant changes in asset values such as write-downs or
reversals of write-downs, significant restructuring costs, or other items that
the management considers to be non-recurring. When evaluating a non-recurring
item, the euro translation value of the item is considered, and in case of a
change in an asset value, it is measured against the total value of the asset.
In 2013 Wireless Business Segment reported non-recurring cost of approximately
EUR 0.8 million resulting from the cost saving measures in the Wireless Business
Segment in the first quarter of 2013. In the review period and in the periods
presented for comparison in the table above, no non-recurring items occurred.
In 2014 Wireless Business Segment reported non-recurring income of approximately
EUR 1.1 million resulting from the reorganization cases of TerreStar companies
during the third quarter of the year.
Net sales and operating profit development by Business Segments and other
businesses, MEUR:
3Q 14 2Q 14 1Q 14 4Q 13 3Q 13
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Automotive
Net sales to external customers 42.5 39.8 37.5 41.1 34.1
Net sales to other segments 0.0 0.0 0.0 0.0 0.0
Operating profit (loss) 3.5 4.2 2.9 5.4 1.9
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Wireless
Net sales to external customers 10.0 12.4 14.2 18.3 11.5
Net sales to other segments 0.1 0.0 0.0 0.0 0.0
Operating profit (loss) 1.1 -0.9 -1.1 0.3 -0.9
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Other businesses
Net sales to external customers 0.0 0.0 0.0 0.0 0.0
Operating profit (loss) -0.0 -0.2 0.1 0.0 0.0
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Total
Net sales 52.5 52.2 51.7 59.5 45.7
Operating profit (loss) 4.6 3.1 1.9 5.7 1.0
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The distribution of net sales by market areas, MEUR and %:
3Q 14 2Q 14 1Q 14 4Q 13 3Q 13
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Asia 2.6 1.8 2.5 2.3 1.9
5.0 % 3.5 % 4.9 % 3.9 % 4.3 %
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Americas 7.6 6.6 7.2 8.0 6.0
14.5 % 12.7 % 13.8 % 13.4 % 13.2 %
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Europe 42.3 43.8 42.0 49.2 37.7
80.6 % 83.8 % 81.3 % 82.7 % 82.5 %
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SIGNIFICANT EVENTS DURING THE REPORTING PERIOD
A total of 1 141 617 new shares were subscribed for between December 5, 2013 and
August 18, 2014 by virtue of the stock option rights 2008A, 2008B and 2008C. The
share subscription price, EUR 399 873.09 was recorded in the Company's invested
non-restricted equity fund. The increases in the number of the Company's shares
were entered into the Finnish Trade Register on February 10, 2014, April
14, 2014, on June 26, 2014 and on August 27, 2014. The trading with the
registered shares started on February 11, 2014, April 15, 2014 on June
27, 2014, and on August 29, 2014 as an additional lot of Elektrobit
Corporation's shares in NASDAQ OMX Helsinki Ltd. After the registration of the
new shares, the number of shares in Elektrobit Corporation totaled 131 242 492.
On April 30, 2014 EB started personnel negotiations to adjust its cost structure
for the weakened order book for R&D services in the next few months. The
negotiations were concluded on May 15, and the company decided to temporarily
lay off at the maximum of 90 persons in the Wireless Business Segment. With
these temporary dismissals EB targets cost savings of approximately EUR 0.8
million, which would materialize mainly during the third quarter of the year.
EB signed EUR 10.0 million credit facility agreement with Nordea Bank Finland
Plc and EUR 10.0 million credit facility agreement with Pohjola Bank Plc on July
2, 2014. These agreements, intended for general financing purposes, are valid
until June 30, 2017 and include conventional covenants that are, among others,
related to equity ratio, transfer and pledge of the assets. These credit
facility agreements replaced EUR 20.0 million credit facilities from Nordea Bank
Suomi Plc, which were valid until 30.6.2014.
In July a subsidiary of Elektrobit Corporation, Elektrobit Inc. and the
TerreStar Networks Inc. liquidating trustee entered into a conditional
settlement agreement in the liquidation case. On July 10, 2014, the trustee
filed a motion with the United States Bankruptcy Court seeking approval of the
settlement. According to the settlement, if the conditions to its effectiveness
are fulfilled, the trust shall be obligated to pay EB, an immediate cash payment
of USD 1 075 000 (EUR 0.8 million as per exchange rate of August 6, 2014) in
full and final satisfaction of its claims against TerreStar Networks and in
resolution of all disputes between EB and the bankruptcy estate of TerreStar
Networks and certain of its subsidiaries and affiliates.
On August 12, 2014 U.S. time the United States Bankruptcy Court formally
approved the conditional agreement of settlement between EB and The Liquidating
Trust of TSN.
On August 28, 2014, U.S. time, EB received a cash payment of USD 1 075 000 (EUR
0.8 million as per exchange rate of August 28, 2014) (the "Settlement Payment")
in full and final satisfaction of its claim against TSN and in resolution of all
disputes between EB and The Liquidating Trust of TSN. Upon receipt by EB of the
Settlement Payment, certain mutual releases of liability and other agreements
set forth in the Settlement have become effective, and it is anticipated that
EB's participation in the TSN Chapter 11 cases is concluded. The Settlement
Payment has resulted in a non-recurring positive effect of approximately EUR
0.8 million on EB's operating result and in a positive effect on Elektrobit
Corporation's cash flow of approximately EUR 0.8 million on the third quarter
2014.
After the reporting period EB has entered into settlement with Internal Revenue
Service (IRS) concerning tax treatment of impairment of receivables from
TerreStar companies and EB reversed the remaining EUR 0.3 million provision. The
reversal of the provision and the EUR 0.8 million settlement payment have
together approximately EUR 1.1 million non-recurring positive effect on
Elektrobit Corporation's third quarter 2014 operating result. More information
about the settlement with IRS is presented in the section "Events after the
reporting period".
In September Parrot S.A., a supplier of e.solutions GmbH, a jointly owned
company of EB and AUDI, has withdrawn the legal proceeding taken against
e.solutions GmbH in the Tribunal de Commerce de Paris (Commercial Court Paris)
in April 2014. In the claim Parrot S.A. requested to collect damages in the
amount of approximately EUR 18.4 million for loss of profit and reputational
damage. According to e.solutions GmbH's initial legal analysis as announced in
EB's stock exchange release on April 4, 2014, the claim was without merit both
in terms of the grounds and the amount of the claim. More information about the
legal action and withdrawal has been presented in stock exchange releases
published on April 4, 2014 and on September 22, 2014. Neither the legal action
nor the withdrawal has caused any such financial consequence that would affect
EB's profit outlook or financial position. However, it is possible, that Parrot
S.A. may initiate further legal actions in another forum.
BUSINESS SEGMENTS' DEVELOPMENT DURING July-September 2014 AND MARKET OUTLOOK
EB's reporting is based on two segments which are the Automotive and Wireless
Business Segments.
AUTOMOTIVE
In Automotive Business Segment EB offers a range of software products and R&D
services for in-car embedded software, as well as professional tools that
support the whole process of the in-car software development. Our customers are
carmakers, car electronics suppliers and other suppliers to the automotive
industry. The offering includes secure & safe technologies and solutions for
Connected Car Infrastructure, Driver Assistance and Infotainment solutions
containing navigation and human machine interfaces (HMI) technologies. By
combining its software products and R&D services, EB is creating unique,
customized solutions for the automotive industry. EB's software products are: EB
street director navigation software, EB GUIDE HMI development and speech
dialogue platform, EB tresos product line of software components used in ECUs
and tools for their configuration, and EB Assist, an extensive product line with
tooling and a software development kit for driver assistance solutions. These
software products generate license fees, often combined with supply of R&D
services for customized solutions.
EB and Audi's subsidiary, Audi Electronics Venture GmbH (AEV), have a jointly
owned company e.solutions GmbH that is currently developing infotainment
software and provides systems engineering and systems integration services for
Volkswagen Group car models. EB also delivers products and R&D services to the
joint venture. EB owns 51% of e.solutions GmbH and AEV 49%. e.solutions GmbH is
consolidated in EB group's financial statements by applying proportionate
consolidation method.
Development of the Automotive Business Segment in July - September 2014
EB's net sales in Automotive Business Segment continued its strong growth during
the third quarter of 2014 and amounted to EUR 42.5 million (EUR 34.1 million,
3Q 2013), representing a growth of 24.5 % year-on-year. Operating profit impro
ved clearly and was EUR 3.5 million (EUR 1.9 million, 3Q 2013). The demand for
EB's software products and R&D services remained good in the Automotive Business
Segment, including the jointly owned company e.solutions GmbH. The improvement
of the operating profit was driven mainly by the good performance in services
projects, growth of software license sales especially for the in-car navigation
software and lower R&D investments.
The R&D investments in the third quarter were EUR 3.2 million (EUR 3.6 million,
3Q 2013). The reason for the decrease in the R&D investments was the transfer of
certain product platform development from an initial investment phase to a
continuing development phase.
In August EB announced its plans to build a new automotive software development
site in Oulu, Finland. The new site is planned to employ up to 40 software
engineers by the end of 2014, focusing on the development of embedded automotive
software. EB's Automotive Business Segment has grown steadily during the last
years, and expanding its operations to Oulu, Finland, will offer the company an
opportunity to further grow its software engineering capacity for current and
future needs.
Automotive Business Segment market outlook
The global car market is expected to grow by 3% in 2014 according to the
forecast made by VDA (Verband der Automobilindustrie). Carmakers continued to
invest in automotive software for new car models and the market for software
products and services is estimated to continue growing during 2014. The demand
for EB's products and services is estimated to develop positively year-on-year
during 2014 in Automotive Business Segment.
The market for electronics and software for cars is estimated to continue
growing in the long term. The study "Future Industry Structure of Automotive
(FAST) Electronics 2025" from Berylls assumes a growth of automotive electronics
from EUR 215 billion in 2012 to EUR 456 billion in 2025 (CAGR 6%).
Growth in the automotive software market, and growth for EB, is mainly expected
to be driven by:
* The majority of in-vehicle innovations come from electronics and software.
Using software as a differentiator, carmakers are able to develop feature-
rich vehicles, and differentiate in areas comfort and security, information
and entertainment, powertrain and communication. The trend of separating
hardware from software continues in 2014 and beyond, allowing carmakers to
speed up innovation and to improve the quality and cost efficiency of their
vehicles.
* Carmakers continue to work on global modular car platforms to achieve
scalability as well as good ability to handle the complexity of a growing
number of car models and variants. This means volumes for software platforms
will increase and software development programs will become global to
include localization for all regions.
* Consumers expect in the car the same richness of features and user
experience they know from the Internet and mobile devices, and therefore
infotainment systems become increasingly common in all car price categories.
* Mobile connectivity will become one of the fastest-growing Internet-
connected device platforms among other connected consumer electronics
devices, such as media tablets and smartphones. Gartner estimates that by
2016, the majority of car buyers in automotive markets like in the U.S. and
the Western Europe will view the availability of in-vehicle, web-enabled
dynamic content as a key buying criterion when considering a standard brand
car.
* Connected Car solutions and cloud connections enable introduction of new
applications and enhancements to car functions, for example real-time
traffic information or map updates for navigation. The increasing demand to
better integrate mobile devices with the car has been reflected in consumer
electronics companies such as Apples "CarPlay" or Google's announcement of
Open Automotive Alliance.
* New Active Safety Systems and Driver Assistance applications are being
brought to the market as automated driving is becoming one of the key trends
and an area with significant investments. Carmakers are preparing highly
automated driving systems for their new car models to be available in the
market in the coming years.
WIRELESS
In the Wireless Business Segment EB offers products and product platforms for
defense, public safety and other authority markets as well as for industrial
use. Further EB offers product development services and customized solutions for
wireless communications markets and for companies needing wireless connectivity
for their products. EB's products in the Wireless Business Segment are the EB
Tactical Wireless IP Network for tactical communications, EB Tough VoIP for
tactical IP-based communication, EB Wideband COMINT Sensor for signals
intelligence. The product platforms are the Android-based EB Specialized Device
Platform and EB LTE Connectivity Module for specialized markets. For the latest
wireless technologies and applications EB offers a broad range of R&D services
such as consulting, integration, and development of software and hardware.
Development of the Wireless Business Segment in July - September 2014
Net sales of the Wireless Business Segment during the third quarter of 2014
decreased by 13.2 per cent year-on-year to EUR 10.0 million (EUR 11.6 million,
3Q 2013). The share of the product based net sales was EUR 1.9 million, which
resulted mainly from the product deliveries of the tactical communication system
to the Finnish Defence Forces.
Operating profit was EUR 1.1 million, including non-recurring income of EUR 1.1
million resulting from the reorganization cases of TerreStar companies
(operating loss of EUR -0.9 million, 3Q 2013). The decrease in the net sales
year-on-year and lower than expected operating result were due to the decline in
the demand for R&D services for mobile telecommunications network equipment and
other markets, which decline the increased product-based net sales did not fully
compensate.
EB aims at bringing its products to the global defense and other authority
markets and continued its sales and marketing efforts and R&D investments into
these markets during the third quarter. Customers' purchase decisions proceeded
slower than estimated, and therefore we expect the net sales resulting from the
international defense and other authority markets to remain low in the fourth
quarter.
R&D investments in the second quarter were EUR 1.5 million (EUR 0.8 million,
3Q 2013). R&D investments were increased for products for the use by
authorities.
In July EB received a purchase order from the Finnish Defence Forces for EB
Tactical Wireless IP Network (TAC WIN) system products. The Finnish Defence
Forces also issued a purchase option for further purchases of the same products.
The purchase order and the purchase option are a continuation of the delivery
contract signed between EB and the Finnish Defence Forces in September 2011 and
related product deliveries that began in December 2012. In accordance with the
contract EB is developing the Tactical Wireless IP Network for the Finnish
Defence Forces and delivers software defined radios that are the basis for the
EB TAC WIN system.
During the third quarter EB started the collaboration with Qualcomm to feature
the Qualcomm® Snapdragon(TM) 801 processor in the new version of its EB
Specialized Device Platform (SDP), which will be commercially available later
this year. The device platform enables customer-specific tailoring of
smartphones, tablets and other products, targeted primarily for professional
applications in public safety, mobile satellite services and cyber-security. EB
plans to utilize the Snapdragon(TM) 801 processor in different wireless products
that will be customized based on EB's product platform.
Wireless Business Segment Market Outlook
In the Wireless Business Segment, EB's customers operate in various industries,
each of them having own industry specific factors driving the demand. A common
factor creating demand among the whole customer base is the introduction of new
technologies. In 2014 the implementation of LTE (Long Term Evolution) technology
is expected to continue to be important technological change driving the demand.
Due to the long history in developing smart phones and mobile communication
devices, EB is in a good position to offer solutions, where e.g. mastering of
multi-radio technologies and end-to-end system architectures covering both
terminals and networks is needed.
The following factors are expected to create demand for EB's products and
services in 2014 and beyond:
* In the mobile infrastructure equipment market the use of LTE technology is
expected to continue strong. This creates the need for services for LTE base
station development. There is a wide range of frequencies allocated for LTE
globally thus creating the need to develop multiple products to cover the
market and creating demand for R&D services for development of product
variants.
* The trend of adopting new commercial technologies, such as LTE, smart phones
and applications, is expected to continue in special verticals such as
public safety. The specific LTE frequency band allocations for authorities
create demand for customized LTE devices, such as EB's specialized
terminals, tablets and communication modules.
* IoT (Internet of Things) has become a significant development area in many
industries. The need for R&D services for connected devices for business or
consumer use, such as smart watch and other Wearable devices is evolving and
creating demand for customized solutions based on EB's product platforms.
* In the tactical defense communication market the need for larger amounts of
information data grows, generating demand for broadband networks, such as
EB's IP (Internet Protocol) based tactical communications solutions.
The general cost savings of the mobile telecommunications network equipment
companies is reflected as a decrease in the demand for R&D services despite of
the base station development needs generated by the LTE technology.
EB aims at bringing its products to the global defense and other authorities
markets and expects the net sales generated from these markets to be low in
2014.
The public defense budget cuts affect negatively on the demand for products and
product development services in Europe and also elsewhere in the world, and
simultaneously increase the competition between the suppliers.
The defense, national security and other authority markets are slowly developing
markets by their nature. They are characterized by long sales cycles driven by
purchasing programs of national governments, and the purchases of the selected
products take place over several years.
RESEARCH AND DEVELOPMENT
EB continued its investments in R&D for automotive software products and tools
in Automotive Business Segment, and in products and product platforms for the
defense and public safety markets in Wireless Business Segment.
The total R&D investments during January-September 2014 were EUR 13.1 million
(EUR 14.4 million, 1-9 2013), equaling 8.4% of the net sales (10.3%, 1-9 2013).
The share of R&D investments in Automotive Business Segment was EUR 8.2 million
(EUR 11.4 million, 1-9 2013) and in Wireless Business Segment EUR 4.9 million
(EUR 3.0 million, 1-9 2013).
EUR 1.3 million of R&D investments was capitalized (EUR 0.0 million, 1-9 2013).
The amount of capitalized R&D investments at the end of September 2014 was EUR
12.0 million (EUR 12.3 million, 30.9.2013). A significant part of these
capitalizations is related to customer agreements in Automotive Business
Segment, where future license fees, based on the actual car delivery volumes,
are expected to accumulate in the coming years. Depreciations of R&D investments
were EUR 1.3 million during the reporting period (EUR 1.2 million, 1-9 2013).
The total negative effect, caused from research and development investments,
their capitalizations and their depreciation, on EB's income statement in
January-September 2014 was EUR- 13.1 million (EUR -15.6 million, 1-9 2013).
OUTLOOK FOR 2014
For the year 2014 EB expects that the net sales and operating result will grow
from the previous year (net sales of EUR 199.3 million and operating profit of
EUR 8.1 million, in 2013). Net sales growth rate in 2014 is expected to be
slower than in the previous year (net sales growth 14.6 %, 2013). Operating
profit in the second half of the year is expected to be higher than in the first
half (operating profit of EUR 5.0 million, 1H 2014).
The demand for R&D services and software products of the Automotive Business
Segment is expected to continue good in the second half of the year, and
operating profit of Automotive Business Segment is expected to be at the same
level or better than in the first half of the year (operating profit of EUR 7.1
million, 1H 2014). In the Wireless Business Segment, operating result without
the non-recurring income of EUR 1.1 million resulting from the reorganization
cases of TerreStar companies is expected to be positive in the second half of
2014 (operating loss of EUR -2.0 million, 1H 2014). In the last quarter in the
Wireless Business Segment we expect the product-based net sales to come mainly
from the Finnish authorities and the product-based net sales from international
defense and other authority markets to remain low due to the customers' slower
than estimated purchase decisions.
More specific market outlook is presented under the sections "Market outlook for
the Automotive Business Segment" and "Market outlook for the Wireless Business
Segment".
Following the same principle as in the previous guidance, the non-recurring
income of EUR 1.1 million resulted from the reorganization cases of TerreStar
companies, has not been included in the outlook for 2014.
More information about other uncertainties regarding the outlook is presented in
the sections "Risks and uncertainties" and "Events after the review period", and
in the Report by the Board of Directors 2013, available at
http://annualreport.elektrobit.com.
RISKS AND UNCERTAINTIES
EB has identified a number of business, market and finance related risk factors
and uncertainties that can affect the level of sales and profits.
In August EB received a settlement payment of USD 1 075 000 (EUR 0.8 million)
from TerreStar Networks Inc., and entered into a settlement with Internal
Revenue Service (IRS) concerning tax treatment of impairment of receivables from
TerreStar companies. As a result from the approval of the proposal Elektrobit
Inc. will pay IRS USD 1.4 million (EUR 1.1 million as per exchange rate of
October 8, 2014) taxes including interests for fiscal year 2010 and at the same
time will submit a carryback claim of USD 1.3 million (EUR 1.0 million as per
exchange rate of October 8, 2014) for fiscal year 2011. The payment to IRS will
be made in the fourth quarter of 2014 and carryback refund is estimated to be
received at the latest by the end of 2015. In consequence of receiving full and
final settlement payment and finishing of tax appeal process, EB's activities
related to TerreStar reorganization processes are seen to be concluded. There is
no full certainty that IRS will accept Elektrobit Inc.'s "carryback claim" from
2011.
In September Parrot S.A., a supplier of e.solutions GmbH, a jointly owned
company of EB and AUDI, has withdrawn the legal proceeding taken against
e.solutions GmbH in the Tribunal de Commerce de Paris (Commercial Court Paris)
in April 2014. In the claim Parrot S.A. requested to collect damages in the
amount of approximately EUR 18.4 million for loss of profit and reputational
damage. More information about the legal action and withdrawal has been
presented in stock exchange releases published on April 4, 2014 and on September
22, 2014. However, it is possible, that Parrot S.A. may initiate further legal
actions in another forum. At the worst, Parrot's claim could result significant
negative impact on e.solutions' and EB's profit, cash flow and financial
position.
More short-term description of the risks and uncertainties are described in the
report by the Board of Directors 2013. More information about risks and
uncertainties are presented at the company's internet pages at
www.elektrobit.com.
STATEMENT OF FINANCIAL POSITION AND FINANCING
The figures presented in the statement of financial position of September
30, 2014, are compared with the statement of the financial position of December
31, 2013 (MEUR).
30.9.2014 31.12.2013
----------------------------------------------------------------
Non-current assets 47.1 46.1
----------------------------------------------------------------
Current assets 103.1 98.2
----------------------------------------------------------------
Total assets 150.2 144.4
----------------------------------------------------------------
Share capital 12.9 12.9
----------------------------------------------------------------
Other equity 73.0 68.8
----------------------------------------------------------------
Total shareholders' equity 85.9 81.7
----------------------------------------------------------------
Non-current liabilities 5.9 6.1
----------------------------------------------------------------
Current liabilities 58.3 56.5
----------------------------------------------------------------
Total shareholders' equity and liabilities 150.2 144.4
----------------------------------------------------------------
The cash flows during the period under review:
---------------------------------------------------------------------
+ net profit +/- adjustment of accrual basis items EUR +16.9 million
---------------------------------------------------------------------
+/- change in net working capital EUR -9.3 million
---------------------------------------------------------------------
- interest, taxes and dividends EUR -2.5 million
---------------------------------------------------------------------
= cash generated from operations EUR +5.1 million
---------------------------------------------------------------------
- net cash used in investment activities EUR -6.6 million
---------------------------------------------------------------------
- net cash used in financing EUR -0.8 million
---------------------------------------------------------------------
= net change in cash and cash equivalents EUR -2.3 million
---------------------------------------------------------------------
The increase of the net working capital during the review period resulted mainly
from the increase in non-interest bearing receivables and from the decreased
non-interest bearing liabilities.
The amount of accounts receivable and other receivables, booked in current
receivables, was EUR 60.9 million (EUR 54.3 million on December 31, 2013).
Accounts payable and other payables, booked in interest-free current
liabilities, were EUR 54.1 million (EUR 54.5 million on December 31, 2013). The
amount of non-depreciated consolidation goodwill at the end of the period under
review was EUR 19.4 million (EUR 19.3 million on December 31, 2013).
The amount of gross investments in the period under review was EUR 7.2 million.
Net investments for the reporting period totaled EUR 7.2 million. The total
amount of depreciation during the period under review was EUR 6.3 million,
including EUR 0.2 million of depreciation owing to business acquisitions in
Automotive Business Segment.
The amount of interest-bearing debt, including finance lease liabilities, at
the end of the reporting period was EUR 7.3 million (EUR 5.3 million on December
31, 2013). The distribution of net financing expenses on the income statement
was as follows:
----------------------------------------------------------------
Interest, dividend and other financial income EUR 0.3 million
----------------------------------------------------------------
Interest expenses and other financial expenses EUR -0.3 million
----------------------------------------------------------------
foreign exchange gains and losses EUR -0.7 million
----------------------------------------------------------------
EB's equity ratio at the end of the period was 64.0% (65.1 % on December
31, 2013).
Cash and other liquid assets at the end of the reporting period were EUR 40.7
million (EUR 43.0 million on December 31, 2013). In July EB signed a EUR 10
million credit facility agreement with Nordea Bank Finland Plc. and a EUR 10
million credit facility agreement with Pohjola Bank Plc. These agreements,
intended for general financing purposes, are valid until June 30, 2017. At the
end of the review period, EUR 3.0 million of these facilities was in use.
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 8.0 million.
PERSONNEL
The parent company of the group and its subsidiaries employed an average of
1671 people between January and September 2014. In addition, e.solutions GmbH,
the jointly owned company of EB and AUDI, employed 365 people. At the end of
September, the parent company of the group and its subsidiaries had 1710
employees and e.solutions GmbH 407 employees (1648 in group's parent company and
subsidiaries and e.solutions GmbH 321 at the end of 2013). A significant part of
EB's personnel are R&D engineers.
FLAGGING NOTIFICATIONS
There were no changes in ownership during the period under review that would
have caused flagging notifications which are obligations for disclosure in
accordance with Chapter 2, section 9 of the Securities Market Act.
EVENTS AFTER THE REVIEW PERIOD
In October Elektrobit Inc., a subsidiary of Elektrobit Corporation has entered
into settlement with Internal Revenue Service (IRS) concerning tax treatment of
impairment of receivables from TerreStar companies booked in 2010. Initially IRS
disallowed the deduction taken on Elektrobit Inc.'s federal income tax return.
Elektrobit Inc. appealed the IRS decision to the IRS Office of Appeals that
provided a proposal for a settlement. The parties have now accepted the
proposal.
As a result from the approval of the proposal Elektrobit Inc. will pay IRS USD
1.4 million (EUR 1.1 million as per exchange rate of October 8, 2014) taxes
including interests for fiscal year 2010 and at the same time will submit a
carryback claim of USD 1.3 million (EUR 1.0 million as per exchange rate of
October 8, 2014) for fiscal year 2011. The payment to IRS will happen on the
fourth quarter of 2014 and carryback refund, if the claim will be approved, is
estimated to be received at the latest by the end of 2015.
The settlement payment of USD 1 075 000 received from TerreStar Networks Inc. in
August (more information on Company's stock exchange release on August
29, 2014) formed the full and final satisfaction of Elektrobit Inc.'s laid and
open claims against TerreStar companies in their reorganization cases. In
consequence of receiving full and final settlement payment and finishing of tax
appeal process, EB's activities related to TerreStar reorganization processes
are expected to be concluded. EB will reverse the remaining EUR 0.3 million
provision made for legal and consulting costs. The reversal of the provision and
the EUR 0.8 million settlement payment will have together approximately EUR 1.1
million non-recurring positive effect on Elektrobit Corporation's third quarter
2014 operating result. The above mentioned non-recurring items do not have
effect on Elektrobit Corporation's financial outlook for 2014. EB will report
the non-recurring items and tax items as part of its normal interim reporting.
A total of 164 608 new shares in Elektrobit Corporation were subscribed for
between September 3, 2014 and October 15, 2014, pursuant to series 2008B-C stock
options. The share subscription price, EUR 115 971.68 has been recorded in the
Company's invested non-restricted equity fund. The corresponding increase in the
number of the Company's shares has been entered into the Finnish Trade Register
on October 28, 2014. Shareholder rights by virtue of the new shares commence as
of the abovementioned registration entry date. Trading with the newly registered
shares will start on October 29, 2014 as an additional lot of Elektrobit
Corporation's shares in NASDAQ OMX Helsinki Ltd. After the registration of the
new shares, the number of shares in Elektrobit Corporation's totals to
131 407 100.
On October 28, 2014 EB received a flagging announcement pursuant to chapter 9,
section 5 of the Finnish Securities Markets Act, according to which the number
of Elektrobit Corporation's shares increased on October 28, 2014 through share
subscriptions pursuant to stock options, totaling to 131 407 100 shares,
resulting in the decrease in the holdings of the shares and voting rights of
Juha Hulkko below the 15 per cent flagging threshold. The decrease took place on
October 28, 2014. The aggregate holdings of Juha Hulkko total to 19 701 862
shares in Elektrobit Corporation, corresponding to 14.99 per cent of the
Elektrobit Corporation's shares and voting rights.
On November 6, 2014 EB announced the plans to rationalize its operations in the
Wireless Business Segment in Finland and targets to achieve annual cost savings
of approximately EUR 1 million by centralizing some of its operations more in
Oulu and by focusing the roles of its offices in Finland. EB started personnel
negotiations with its Wireless Business Segment's personnel in Kajaani and
Tampere based on financial and production related reasons and restructuring of
employer's operations, which is estimated to lead to termination of 20
employment relationships at the maximum. The planned cost saving actions, if
materialized, are estimated to cause non-recurring costs of approximately EUR
0.4 million that will weaken the operating result of the last quarter 2014.
Financial impacts of the planned actions are taken into account in the company's
outlook for 2014 presented in this interim report.
Oulu November 6, 2014
Elektrobit Corporation
The Board of Members
Further Information:
Jukka Harju
CEO
Tel. +358 40 344 5466
Distribution:
NASDAQ OMX Helsinki
Major media
ELEKTROBIT CORPORATION (EB)
CONDENSED FINANCIAL STATEMENTS and notes january - SEPTEMBER 2014
(unaudited)
The Interim Report has been prepared in accordance with IAS 34 Interim Financial
Reporting.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1-9/2014 1-9/2013 1-12/2013
(MEUR) 9 months 9 months 12 months
Continuing operations
-------------------------------------------------------------------------------
NET SALES 156.4 139.8 199.3
-------------------------------------------------------------------------------
Other operating income 2.9 2.8 3.5
-------------------------------------------------------------------------------
Change in work in progress and finished goods 0.0 0.1 -0.0
-------------------------------------------------------------------------------
Work performed by the undertaking for its own 0.1 0.0
purpose and capitalized
-------------------------------------------------------------------------------
Raw materials -10.6 -6.2 -12.4
-------------------------------------------------------------------------------
Personnel expenses -91.7 -84.4 -113.2
-------------------------------------------------------------------------------
Depreciation -6.3 -6.7 -9.0
-------------------------------------------------------------------------------
Other operating expenses -41.2 -43.1 -60.0
-------------------------------------------------------------------------------
OPERATING PROFIT (LOSS) 9.6 2.4 8.1
-------------------------------------------------------------------------------
Financial income and expenses -0.6 -0.7 -0.9
-------------------------------------------------------------------------------
PROFIT BEFORE TAX 9.0 1.8 7.2
-------------------------------------------------------------------------------
Income tax -2.8 -0.1 -0.6
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS 6.2 1.6 6.7
-------------------------------------------------------------------------------
Discontinued operations
-------------------------------------------------------------------------------
Profit for the year from discontinued operations 24.3 24.3
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 6.2 25.9 30.9
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Other comprehensive income:
-------------------------------------------------------------------------------
Items that will not be reclassified to statement
of income
-------------------------------------------------------------------------------
Re-measurement gains (losses) on defined benefit 0.0
plans
-------------------------------------------------------------------------------
Items that may be reclassified subsequently to the
statement of income
-------------------------------------------------------------------------------
Exchange differences on translating foreign 0.4 0.1 -0.0
operations
-------------------------------------------------------------------------------
Other comprehensive income for the period total 0.4 0.1 -0.0
-------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 6.6 26.0 30.9
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Profit for the year attributable to
-------------------------------------------------------------------------------
Equity holders of the parent 6.2 25.9 30.9
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total comprehensive income for the period
attributable to
-------------------------------------------------------------------------------
Equity holders of the parent 6.6 26.0 30.9
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from continuing operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.047 0.012 0.051
-------------------------------------------------------------------------------
Diluted earnings per share 0.047 0.012 0.051
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from discontinued operations,
EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.188 0.188
-------------------------------------------------------------------------------
Diluted earnings per share 0.186 0.187
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from continuing and
discontinued operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.047 0.200 0.239
-------------------------------------------------------------------------------
Diluted earnings per share 0.047 0.199 0.238
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Average number of shares, 1000 pcs 130 868 129 432 129 528
-------------------------------------------------------------------------------
Average number of shares, diluted, 1000 pcs 131 604 130 319 130 092
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF Sept. 30, 2014 Sept. 30, 2013 Dec. 31, 2013
FINANCIAL POSITION (MEUR)
-------------------------------------------------------------------------------
ASSETS
-------------------------------------------------------------------------------
Non-current assets
-------------------------------------------------------------------------------
Property, plant and equipment 9.2 9.3 9.7
-------------------------------------------------------------------------------
Goodwill 19.4 19.3 19.3
-------------------------------------------------------------------------------
Intangible assets 16.8 16.2 15.5
-------------------------------------------------------------------------------
Other financial assets 0.1 0.1 0.1
-------------------------------------------------------------------------------
Deferred tax assets 1.6 1.2 1.5
-------------------------------------------------------------------------------
Non-current assets total 47.1 46.1 46.1
-------------------------------------------------------------------------------
Current assets
-------------------------------------------------------------------------------
Inventories 1.5 0.8 0.8
-------------------------------------------------------------------------------
Trade and other receivables 60.9 60.2 54.3
-------------------------------------------------------------------------------
Financial assets at fair value 20.9 35.0 20.7
through profit or loss
-------------------------------------------------------------------------------
Cash and short term deposits 19.8 9.0 22.4
-------------------------------------------------------------------------------
Current assets total 103.1 105.0 98.2
-------------------------------------------------------------------------------
TOTAL ASSETS 150.2 151.1 144.4
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
EQUITY AND LIABILITIES
-------------------------------------------------------------------------------
Equity attributable to equity
holders of the parent
-------------------------------------------------------------------------------
Share capital 12.9 12.9 12.9
-------------------------------------------------------------------------------
Invested non-restricted equity 24.9 38.7 24.5
fund
-------------------------------------------------------------------------------
Translation difference 1.0 0.7 0.6
-------------------------------------------------------------------------------
Retained earnings 47.0 38.6 43.7
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
Total equity 85.9 91.0 81.7
-------------------------------------------------------------------------------
Non-current liabilities
-------------------------------------------------------------------------------
Deferred tax liabilities 0.5 0.5 0.5
-------------------------------------------------------------------------------
Pension obligations 2.2 2.1 2.1
-------------------------------------------------------------------------------
Provisions 0.2 0.3 0.3
-------------------------------------------------------------------------------
Interest-bearing liabilities 3.0 7.2 3.3
-------------------------------------------------------------------------------
Non-current liabilities total 5.9 10.1 6.1
-------------------------------------------------------------------------------
Current liabilities
-------------------------------------------------------------------------------
Trade and other payables 51.2 38.5 52.2
-------------------------------------------------------------------------------
Financial liabilities at fair 0.4
value through profit or loss
-------------------------------------------------------------------------------
Provisions 2.5 2.0 2.3
-------------------------------------------------------------------------------
Interest-bearing loans and 4.3 9.6 2.0
borrowings
-------------------------------------------------------------------------------
Current liabilities total 58.3 50.1 56.5
-------------------------------------------------------------------------------
Total liabilities 64.3 60.2 62.6
-------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 150.2 151.1 144.4
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS (MEUR) 1-9/2014 1-9/2013 1-12/2013
9 months 9 months 12 months
-------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
-------------------------------------------------------------------------------
Profit for the year from continuing operations 6.2 1.6 6.7
-------------------------------------------------------------------------------
Profit for the year from discontinued operations 24.3 24.3
-------------------------------------------------------------------------------
Adjustment of accrual basis items 10.7 -17.1 -13.3
-------------------------------------------------------------------------------
Change in net working capital -9.3 1.3 18.7
-------------------------------------------------------------------------------
Interest paid on operating activities -0.4 -1.1 -1.3
-------------------------------------------------------------------------------
Interest received from operating activities 0.3 0.2 0.3
-------------------------------------------------------------------------------
Other financial income and expenses, net received 0.0 0.0 0.0
-------------------------------------------------------------------------------
Income taxes paid -2.4 -0.5 -0.7
-------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 5.1 8.7 34.7
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
-------------------------------------------------------------------------------
Acquisition of business unit, net of cash acquired 29.2 30.0
-------------------------------------------------------------------------------
Purchase of property, plant and equipment -2.2 -3.1 -4.0
-------------------------------------------------------------------------------
Purchase of intangible assets -4.4 -1.6 -2.0
-------------------------------------------------------------------------------
Sale of property, plant and equipment 0.0 0.1 0.2
-------------------------------------------------------------------------------
Sale of intangible assets 0.0 0.0 0.0
-------------------------------------------------------------------------------
Proceeds from sale of investments 0.0
-------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES -6.6 24.7 24.4
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
-------------------------------------------------------------------------------
Share-option plans exercised 0.4 0.1 0.1
-------------------------------------------------------------------------------
Proceeds from borrowing 19.4 16.6 16.6
-------------------------------------------------------------------------------
Repayment of borrowing -16.6 -16.9 -28.4
-------------------------------------------------------------------------------
Payment of finance liabilities -1.4 -2.3 -3.1
-------------------------------------------------------------------------------
Dividend paid and repayment of capital -2.6 -1.3 -15.6
-------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES -0.8 -3.8 -30.3
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
NET CHANGE IN CASH AND CASH EQUIVALENTS -2.3 29.6 28.7
-------------------------------------------------------------------------------
Cash and cash equivalents at beginning of period 43.0 14.3 14.3
-------------------------------------------------------------------------------
Cash and cash equivalents at end of period 40.7 43.9 43.0
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (MEUR)
----------------------------------------------------
A = Share capital
----------------------------------------------------
B = Invested non-restricted equity fund
----------------------------------------------------
C = Translation difference
----------------------------------------------------
D = Retained earnings
----------------------------------------------------
F = Non-controlling interests
----------------------------------------------------
G = Total equity
----------------------------------------------------
Restated A B C D E F
--------------------------------------------------------------------------
Shareholders equity on December 31, 2012 12.9 38.7 0.6 14.3 66.6
--------------------------------------------------------------------------
Change in accounting policy (IAS 19) -0.6 -0.6
--------------------------------------------------------------------------
Shareholders equity on January 1, 2013 restated 12.9 38.7 0.6 13.8 66.0
--------------------------------------------------------------------------
Comprehensive income for the period
--------------------------------------------------------------------------
Profit for the period 25.9 25.9
--------------------------------------------------------------------------
Exchange differences on translating foreign 0.1 0.1
operations
--------------------------------------------------------------------------
Total comprehensive income for the period 0.1 25.9 26.0
--------------------------------------------------------------------------
Transactions between the shareholders
--------------------------------------------------------------------------
Dividend distribution -1.3 -1.3
--------------------------------------------------------------------------
Share option plans exercised 0.1 0.1
--------------------------------------------------------------------------
Share-related compensation 0.1 0.1
--------------------------------------------------------------------------
Total transactions between the shareholders 0.1 -1.2 -1.1
--------------------------------------------------------------------------
Other changes 0.0 0.0
--------------------------------------------------------------------------
Shareholders equity on Sept. 30, 2013 12.9 38.7 0.7 38.6 91.0
--------------------------------------------------------------------------
A B C D E F
------------------------------------------------------------------------
Shareholders equity on Jan. 1, 2014 12.9 24.5 0.6 43.7 81.7
------------------------------------------------------------------------
Comprehensive income for the period
------------------------------------------------------------------------
Profit for the period 6.2 6.2
------------------------------------------------------------------------
Exchange differences on translating foreign 0.4 0.4
operations
------------------------------------------------------------------------
Total comprehensive income for the period 0.4 6.2 6.6
------------------------------------------------------------------------
Transactions between the shareholders
------------------------------------------------------------------------
Dividend distribution -2.6 -2.6
------------------------------------------------------------------------
Share option plans exercised 0.4 0.4
------------------------------------------------------------------------
Share-related compensation 0.1 0.1
------------------------------------------------------------------------
Total transactions between the shareholders 0.4 -2.5 -2.1
------------------------------------------------------------------------
Other changes -0.3 -0.3
------------------------------------------------------------------------
Shareholders equity on Sept. 30, 2014 12.9 24.9 1.0 47.0 85.9
------------------------------------------------------------------------
NOTES TO THE interim Financial reporting
Accounting principles for the interim financial reporting:
The Interim Report has been prepared in accordance with IAS 34 Interim Financial
Reporting. Elektrobit Corporation has applied the same accounting principles in
the preparation of this Interim Report as in its Financial Statements for 2013,
except for the adoption of new standards and interpretations effective during
2014. The changes did not have material impact on the Interim Report.
SEGMENT-INFORMATIOn (MEUR)
OPERATING SEGMENTS 1-9/2014 1-9/2013 1-12/2013
9 months 9 months 12 months
--------------------------------------------------------------
Automotive
--------------------------------------------------------------
Net sales to external customers 119.8 97.1 138.2
--------------------------------------------------------------
Net sales to other segments 0.0 0.1 0.1
--------------------------------------------------------------
Net sales total 119.8 97.2 138.3
--------------------------------------------------------------
--------------------------------------------------------------
Operating profit (loss) 10.6 3.1 8.5
--------------------------------------------------------------
--------------------------------------------------------------
Wireless
--------------------------------------------------------------
Net sales to external customers 36.6 42.7 61.1
--------------------------------------------------------------
Net sales to other segments 0.1 0.1 0.1
--------------------------------------------------------------
Net sales total 36.7 42.8 61.2
--------------------------------------------------------------
--------------------------------------------------------------
Operating profit (loss) -0.9 -0.8 -0.5
--------------------------------------------------------------
--------------------------------------------------------------
OTHER ITEMS
--------------------------------------------------------------
--------------------------------------------------------------
Other items
--------------------------------------------------------------
Net sales to external customers
--------------------------------------------------------------
Operating profit (loss) -0.0 0.1 0.1
--------------------------------------------------------------
--------------------------------------------------------------
Eliminations
--------------------------------------------------------------
Net sales to other segments -0.1 -0.2 -0.2
--------------------------------------------------------------
Operating profit (loss) 0.0 0.0 0.0
--------------------------------------------------------------
--------------------------------------------------------------
Group total
--------------------------------------------------------------
Net sales to external customers 156.4 139.8 199.3
--------------------------------------------------------------
Operating profit (loss) 9.6 2.4 8.1
--------------------------------------------------------------
Net sales of geographical areas (MEUR) 1-9/2014 1-9/2013 1-12/2013
9 months 9 months 12 months
-------------------------------------------------------------------
Net sales
-------------------------------------------------------------------
Europe 128.0 115.6 164.8
-------------------------------------------------------------------
Americas 21.4 18.6 26.6
-------------------------------------------------------------------
Asia 7.0 5.6 7.9
-------------------------------------------------------------------
Net sales total 156.4 139.8 199.3
-------------------------------------------------------------------
Related party transactions 1-9/2014 1-9/2013 1-12/2013
9 months 9 months 12 months
-------------------------------------------------------------------------------
Employee benefits for key management and stock 0.9 0.8 1.2
options expenses total
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF 7-9/2014 4-6/2014 1-3/2014 10-12/2013 7-9/2013
COMPREHENSIVE INCOME BY QUARTER 3 months 3 months 3 months 3 months 3 months
(MEUR)
Continuing operations
-------------------------------------------------------------------------------
NET SALES 52.5 52.2 51.7 59.5 45.7
-------------------------------------------------------------------------------
Other operating income 1.1 1.1 0.6 0.7 0.9
-------------------------------------------------------------------------------
Change in work in progress and 0.0 0.0 0.0 -0.1 0.1
finished goods
-------------------------------------------------------------------------------
Work performed by the 0.0 0.1 0.0
undertaking for its own purpose
and capitalized
-------------------------------------------------------------------------------
Raw materials -1.9 -3.6 -5.1 -6.3 -2.0
-------------------------------------------------------------------------------
Personnel expenses -29.8 -30.5 -31.4 -28.8 -26.6
-------------------------------------------------------------------------------
Depreciation -2.1 -2.1 -2.2 -2.4 -2.3
-------------------------------------------------------------------------------
Other operating expenses -15.2 -14.2 -11.8 -17.0 -14.7
-------------------------------------------------------------------------------
OPERATING PROFIT (LOSS) 4.6 3.1 1.9 5.7 1.0
-------------------------------------------------------------------------------
Financial income and expenses -0.4 -0.3 0.0 -0.2 -0.1
-------------------------------------------------------------------------------
PROFIT BEFORE TAX 4.2 2.8 1.9 5.5 0.9
-------------------------------------------------------------------------------
Income tax -1.6 -1.0 -0.2 -0.4 -0.1
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD FROM 2.6 1.8 1.7 5.0 0.8
CONTINUING OPERATIONS
-------------------------------------------------------------------------------
Discontinued operations
-------------------------------------------------------------------------------
Profit for the period from 0.7
discontinued operations
-------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 2.6 1.8 1.7 5.0 1.5
-------------------------------------------------------------------------------
Other comprehensive income 0.2 0.3 -0.1 -0.1 -0.1
-------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR 2.8 2.1 1.6 4.9 1.4
THE PERIOD
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Profit for the period
attributable to:
-------------------------------------------------------------------------------
Equity holders of the parent 2.6 1.8 1.7 5.0 1.5
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
Total comprehensive income for
the period attributable to:
-------------------------------------------------------------------------------
Equity holders of the parent 2.8 2.1 1.6 4.9 1.4
-------------------------------------------------------------------------------
Non-controlling interests
-------------------------------------------------------------------------------
CONSOLIDATED Sept. Jun. Mar. Dec. Sept.
STATEMENT OF 30, 2014 30, 2014 31, 2014 31, 2013 30, 2013
FINANCIAL
POSITION (MEUR)
-------------------------------------------------------------------------------
ASSETS
-------------------------------------------------------------------------------
Non-current
assets
-------------------------------------------------------------------------------
Property, 9.2 9.1 9.3 9.7 9.3
plant and
equipment
-------------------------------------------------------------------------------
Goodwill 19.4 19.4 19.4 19.3 19.3
-------------------------------------------------------------------------------
Intangible 16.8 14.7 14.8 15.5 16.2
assets
-------------------------------------------------------------------------------
Other 0.1 0.1 0.1 0.1 0.1
financial assets
-------------------------------------------------------------------------------
Deferred tax 1.6 1.5 1.5 1.5 1.2
assets
-------------------------------------------------------------------------------
Non-current 47.1 44.9 45.1 46.1 46.1
assets total
-------------------------------------------------------------------------------
Current assets
-------------------------------------------------------------------------------
Inventories 1.5 1.0 0.9 0.8 0.8
-------------------------------------------------------------------------------
Trade and 60.9 71.6 55.3 54.3 60.2
other
receivables
-------------------------------------------------------------------------------
Financial
assets at fair 20.9 20.9 20.8 20.7 35.0
value through
profit or loss
-------------------------------------------------------------------------------
Cash and short 19.8 10.0 21.8 22.4 9.0
term deposits
-------------------------------------------------------------------------------
Current assets 103.1 103.5 98.8 98.2 105.0
total
-------------------------------------------------------------------------------
TOTAL ASSETS 150.2 148.4 144.0 144.4 151.1
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
EQUITY AND
LIABILITIES
-------------------------------------------------------------------------------
Equity
attributable to
equity holders
of the parent
-------------------------------------------------------------------------------
Share capital 12.9 12.9 12.9 12.9 12.9
-------------------------------------------------------------------------------
Invested non- 24.9 24.9 24.8 24.5 38.7
restricted
equity fund
-------------------------------------------------------------------------------
Translation 1.0 0.8 0.5 0.6 0.7
difference
-------------------------------------------------------------------------------
Retained 47.0 44.7 45.4 43.7 38.6
earnings
-------------------------------------------------------------------------------
Non-
controlling
interests
-------------------------------------------------------------------------------
Total equity 85.9 83.3 83.7 81.7 91.0
-------------------------------------------------------------------------------
Non-current
liabilities
-------------------------------------------------------------------------------
Deferred tax 0.5 0.5 0.5 0.5 0.5
liabilities
-------------------------------------------------------------------------------
Pension 2.2 2.1 2.1 2.1 2.1
obligations
-------------------------------------------------------------------------------
Provisions 0.2 0.3 0.5 0.3 0.3
-------------------------------------------------------------------------------
Interest- 3.0 2.9 3.0 3.3 7.2
bearing
liabilities
-------------------------------------------------------------------------------
Non-current 5.9 5.8 6.1 6.1 10.1
liabilities
total
-------------------------------------------------------------------------------
Current
liabilities
-------------------------------------------------------------------------------
Trade and 51.2 45.4 43.5 52.2 38.5
other payables
-------------------------------------------------------------------------------
Financial 0.4 0.0
liabilities at
fair value
through
profit or loss
-------------------------------------------------------------------------------
Provisions 2.5 3.0 2.3 2.3 2.0
-------------------------------------------------------------------------------
Interest- 4.3 10.9 8.3 2.0 9.6
bearing loans
and borrowings
-------------------------------------------------------------------------------
Current 58.3 59.3 54.1 56.5 50.1
liabilities
total
-------------------------------------------------------------------------------
Total 64.3 65.1 60.3 62.6 60.2
liabilities
-------------------------------------------------------------------------------
TOTAL EQUITY AND 150.2 148.4 144.0 144.4 151.1
LIABILITIES
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH 7-9/2014 4-6/2014 1-3/2014 10-12/2013 7-9/2013
FLOWS BY QUARTER 3 months 3 months 3 months 3 months 3 months
-------------------------------------------------------------------------------
Net cash from operating 20.5 -9.7 -5.7 26.0 3.3
activities
-------------------------------------------------------------------------------
Net cash from investing -3.9 -1.7 -1.0 -0.3 -1.6
activities
-------------------------------------------------------------------------------
Net cash from financing -6.7 -0.3 6.2 -26.5 0.1
activities
-------------------------------------------------------------------------------
Net change in cash and cash 9.8 -11.6 -0.5 -0.9 1.8
equivalents
-------------------------------------------------------------------------------
FINANCIAL PERFORMANCE RELATED RATIOS 1-9/2014 1-9/2013 1-12/2013
9 months 9 months 12 months
-------------------------------------------------------------------------------
STATEMENT OF COMPREHENSIVE INCOME (MEUR)
-------------------------------------------------------------------------------
Net sales 156.4 139.8 199.3
-------------------------------------------------------------------------------
Operating profit (loss) 9.6 2.4 8.1
-------------------------------------------------------------------------------
Operating profit (loss), % of net sales 6.1 1.7 4.1
-------------------------------------------------------------------------------
Profit before taxes 9.0 1.8 7.2
-------------------------------------------------------------------------------
Profit before taxes, % of net sales 5.7 1.3 3.6
-------------------------------------------------------------------------------
Profit for the period 6.2 1.6 6.7
-------------------------------------------------------------------------------
PROFITABILITY AND OTHER KEY FIGURES
-------------------------------------------------------------------------------
Interest-bearing net liabilities, (MEUR) -33.4 -27.1 -37.7
-------------------------------------------------------------------------------
Net gearing, -% -38,9 -29.8 -46.1
-------------------------------------------------------------------------------
Equity ratio, % 64.0 63.9 65.1
-------------------------------------------------------------------------------
Gross investments, (MEUR) 7.2 5.8 7.9
-------------------------------------------------------------------------------
Average personnel during the period, parent and 1671 1628 1627
subsidiaries
-------------------------------------------------------------------------------
Personnel at the period end, parent and 1710 1685 1648
subsidiaries
-------------------------------------------------------------------------------
Average personnel during the period, jointly owned 365 294 300
company
-------------------------------------------------------------------------------
Personnel at the period end, jointly owned company 407 331 321
-------------------------------------------------------------------------------
AMOUNT OF SHARE ISSUE ADJUSTMENT Sept. 30, 2014 Sept. 30, 2013 Dec. 31, 2013
(1,000 pcs)
-------------------------------------------------------------------------------
At the end of period 131 242 129 631 130 101
-------------------------------------------------------------------------------
Average for the period 130 868 129 432 129 528
-------------------------------------------------------------------------------
Average for the period diluted 131 604 130 319 130 092
with stock options
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1-9/2014 1-9/2013 1-12/2013
STOCK-RELATED FINANCIAL RATIOS 9 months 9 months 12 months
(EUR)
-------------------------------------------------------------------------------
Earnings per share from continuing
operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.047 0.012 0.051
-------------------------------------------------------------------------------
Diluted earnings per share 0.047 0.012 0.051
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from
discontinued operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.188 0.188
-------------------------------------------------------------------------------
Diluted earnings per share 0.186 0.187
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Earnings per share from continuing
and discontinued operations, EUR
-------------------------------------------------------------------------------
Basic earnings per share 0.047 0.200 0.239
-------------------------------------------------------------------------------
Diluted earnings per share 0.047 0.199 0.238
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Equity *) per share 0.65 0.70 0.63
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
*) Equity attributable to equity
holders of the parent
-------------------------------------------------------------------------------
MARKET VALUES OF SHARES (EUR) 1-9/2014 1-9/2013 1-12/2012
9 months 9 months 12 months
------------------------------------------------------------------
Highest 3.23 1.48 2.90
------------------------------------------------------------------
Lowest 2.30 0.64 0.64
------------------------------------------------------------------
Average 2.70 1.04 1.55
------------------------------------------------------------------
At the end of period 2.91 1.33 2.66
------------------------------------------------------------------
------------------------------------------------------------------
Market value of the stock, (MEUR) 381.9 172.4 346.1
------------------------------------------------------------------
Trading value of shares, (MEUR) 139.6 21.5 72.0
------------------------------------------------------------------
Number of shares traded, (1,000 pcs) 51 663 20 757 46 483
------------------------------------------------------------------
Related to average number of shares % 39.5 16.0 35.9
------------------------------------------------------------------
SECURITIES AND CONTINGENT Sept. 30, 2014 Sept. 30, 2013 Dec. 31, 2013
LIABILITIES (MEUR)
-------------------------------------------------------------------------------
AGAINST OWN LIABILITIES
-------------------------------------------------------------------------------
Floating charges 1.0 18.0 18.0
-------------------------------------------------------------------------------
Guarantees 15.3 14.6 14.6
-------------------------------------------------------------------------------
Rental liabilities
-------------------------------------------------------------------------------
Falling due in the next year 7.4 6.6 7.6
-------------------------------------------------------------------------------
Falling due after one year 14.3 14.5 17.6
-------------------------------------------------------------------------------
Other contractual liabilities
-------------------------------------------------------------------------------
Falling due in the next year 2.0 1.3 1.0
-------------------------------------------------------------------------------
Falling due after one year 0.6 0.3 0.6
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Mortgages are pledged for 1.5 13.6 2.5
liabilities totaled
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
NOMINAL VALUE OF CURRENCY Sept. 30, 2014 Sept. 30, 2013 Dec. 31, 2013
DERIVATIVES (MEUR)
-------------------------------------------------------------------------------
Foreign exchange forward contracts
-------------------------------------------------------------------------------
Market value -0.0 0.1 0.1
-------------------------------------------------------------------------------
Nominal value 3.0 5.0 6.0
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Purchased currency options
-------------------------------------------------------------------------------
Market value 0.0 0.1 0.0
-------------------------------------------------------------------------------
Nominal value 5.0 4.0 2.5
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Sold currency options
-------------------------------------------------------------------------------
Market value -0.3 -0.0 -0.0
-------------------------------------------------------------------------------
Nominal value 8.0 8.0 5.0
-------------------------------------------------------------------------------
[HUG#1869141]
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