2015-11-04 16:15:00 CET
2015-11-04 16:15:04 CET
SÄÄNNELTY TIETO
Valoe Oyj - Interim report (Q1 and Q3)
VALOE CORPORATION, INTERIM REPORT FOR JANUARY - SEPTEMBER 2015
Valoe Corporation Interim Report for January - September
2015 4 November 2015 at 17.15 Finnish time
VALOE CORPORATION, INTERIM REPORT FOR JANUARY - SEPTEMBER 2015
4 November 2015
SUMMARY
- The restructuring of Valoe Corporation (“Valoe”) from a company providing
electronics automation solutions to a technology company focusing on clean
energy solutions, particularly on photovoltaic solutions, is completed. Now
Valoe is a technology startup which, however, already has new, competitive and
tested technology in use; operating automated production plant; worldwide
market; as well as experienced personnel with competence in international
technology sales, production and projects. Since Valoe sold 70 percent of its
electronics automation business to FTTK Company Limited (“FTTK”) Valoe reports
of only one continuing business segment i.e. the Clean Energy Segment. The
company aims to close the FTTK transaction in terms of the remaining 30 percent
as soon as possible. However, the parties have not agreed on the closing of the
transaction in terms of the remaining 30 percent of the ownership and the
dispute regarding this issue has been referred to arbitration.
- The net sales of the continuing operations of Valoe for the reporting period
January - September 2015 were EUR 0.5 million (EUR 0.8 million in 2014). The
operating profit of continuing operations was EUR -1.4 million (EUR -6.6
million), profit for the period EUR -2.0 million (EUR -7.1 million), earnings
per share were EUR -0.002 (-0.009) and EBITDA was EUR -0.8 million (EUR -2.3
million). At the beginning of the corresponding period in 2014 the Beijing
factory had still operations but the figures of the reporting period in 2015
include only the net sales of Valoe.
- Based on tax indemnity in the share and asset sale agreement between Valoe
and Savcor Group Ltd, an Australian based company, done in 2009 a claim of EUR
0.7 million against Savcor Group Ltd has been booked in the other operating
income in relation to taxation of the Beijing factory in China in the first
quarter of 2015.
- The Beijing factory has been closed and Valoe Group has no longer any future
expectations or assets relating to the factory in its balance sheet. However,
the group balance sheet includes all of the debts of the Beijing subsidiary
i.e. EUR 3.8 million. Valoe is reviewing options to close the subsidiary in
China. The closing of the subsidiary would have a major impact on the amount of
the debts of the subsidiary despite how the closing is done.
- The financing situation of Valoe continues to be tight. If the company does
not succeed in securing sufficient long-term financing, the continuity of the
company's operation may be jeopardized. The general meeting authorized the
Board of Directors to issue 900,000,000 new company shares at the most. Since
then the Board of Directors has issued a convertible bond and resolved to start
preparing a share issue. The purpose of these actions is to acquire operating
capital for the company and to secure sufficient equity until the company's
operations turn into profit. The total amount of the convertible bond was EUR
7,700,000 and the convertible bond was fully subscribed. The Board of Directors
of Valoe approved all subscriptions on 9 October 2015. Out of the subscriptions
a total of EUR 5.0 million were paid by setting the subscription price off
against the subscribers' receivables from the company. During the subscription
period of the Convertible Bond new investments paid in cash amounting to ca.
EUR 2.7 million, including the short-term loans taken by Valoe after the
beginning of the subscription period and converted to the Convertible Bond,
were made in the company.
More information on principle activities and events during and after the
reporting period can be found in the stock exchange releases published on
Valoe's website at www.valoe.com. The Interim Report has been drawn up in
compliance with the IAS 34 Interim Financial Reporting standard. In the Interim
Report Valoe has applied the same accounting principles as in its Annual Report
2014. The Interim Report has not been audited.
FINANCIAL DEVELOPMENT
Since Valoe transferred its electronics automation business to Cencorp
Automation Oy and sold at first 70 percent and in December 2014 the remaining
30 percent of this company to FTTK Valoe reports of only one business segments,
the Clean Energy segment. In terms of the latter 30 percent the transaction has
not yet been closed and the dispute has been referred to arbitration. The
profit of EUR 0.276 million from the transaction between Valoe and FTTK was
entered in the books in 2014. The figures of Cencorp Automation Oy have not
been consolidated in Valoe's financial reports. In Valoe's financial reports
the profit of discontinued operations (the LAS and LCM Segments that were sold
to FTTK) is reported on a separate line, apart from continuing operations,
thus, the income statement, excluding the discontinued operations item, concern
the company's continuing operations only. The group's segment information is
based on the management's internal reporting and on the organisation structure
of the company.
On 31 December 2014 Valoe's equity had decreased below half of the share
capital. Thus, the Board of Directors convened a general meeting to consider
measures to remedy the financial position of the company and to reduce the
share capital among other things. The extraordinary general meeting authorized
the Board of Directors to issue 900,000,000 new company shares at the most.
Since then the Board of Directors has issued a convertible bond of EUR
7,700,000 that was fully subscribed and resolved to start preparing a share
issue. Further, the company's share capital has been decreased to EUR 80,000
pursuant to the resolution of the general meeting. Due to the successful
Convertible Bond and decrease in the share capital Valoe's equity ratio
increased to ca. 19 per cent as per 30 September 2015.
The figures in brackets are comparison figures for the corresponding period in
2014, unless stated otherwise. The figures for Beijing have been reported in
the continuing operations.
June - September 2015 (continuing operations i.e. the Clean Energy segment)
- Valoe Group's net sales increased by 27.3 percent to EUR 0.2 million (In
2014: EUR 0.1 million).
- EBITDA was EUR -0.5 million (EUR -0.7 million).
- Operating profit was EUR -0.7 million (EUR -0.9 million).
- The profit before taxes was EUR -0.9 million (EUR -0.6 million).
- Profit for the period was EUR -0.9 million (EUR -0.7 million).
January - September 2015 (continuing operations i.e. the Clean Energy segment)
- Valoe Group's net sales decreased by 32.8 percent to EUR 0.5 million (In
2014: EUR 0.8 million including the component production of the Beijing factory
during the first quarter).
- EBITDA was EUR -0.8 million (EUR -2.3 million).
- Operating profit was EUR -1.4 million (EUR -6.6 million).
- The profit before taxes was EUR -2.0 million (EUR -7.1 million).
- Profit for the period was EUR -2.0 million (EUR -7.1 million).
- Earnings per share were EUR -0.002 (EUR -0.009) and diluted earnings per
share EUR -0.002 (EUR -0.009).
The profit for the corresponding year 2014 was decreased by write-downs of EUR
3.2 million done in the Beijing factory and its production equipment.
On the reporting period the operating profit increased due to a claim of EUR
0.7 million against Savcor Group Ltd, an Australia based company, relating to
the taxation of the Beijing factory in China that was booked in the other
operating income. The claim is based on the tax indemnity in the share and
asset sale agreement between Valoe and Savcor Group Ltd done in 2009.
MANAGING DIRECTOR IIKKA SAVISALO'S REVIEW
In 2015 Valoe's most important objective is to successfully conclude the
ongoing sales negotiations for module production lines, to secure long-term
financing facility and to sign the first manufacturing partnership agreements.
During the third quarter of 2015 the company's net sales remained very low.
Valoe changed its cell supplier, which, among other reasons, slowed down the
company's sales growth and thus Valoe's plant did not operate at full capacity.
Domestic demand for solar energy systems has grown clearly compared to the
previous year. In its system delivery projects Valoe has gained valuable
knowledge and experience of the module manufacturing recipe, system design and
of equipment manufacturing for module production processes. Valoe finds the
reference projects important while the company is endeavoring to sign larger
agreements on module plant deliveries and manufacturing partnerships with
foreign partners.
During the reporting period the company made a cell purchase agreement with a
globally remarkable cell and module supplier. Due to the new agreement Valoe
has a better opportunity to optimize the performance of its back contact cells
and their costs together with the cell supplier. Further, the companies have
begun negotiations for the delivery of advanced N-type mono crystalline cells
for Valoe's back contact modules. The new partner has also shown interest in
the cell infrastructure developed by Valoe and Fraunhofer ISE (Fraunhofer
Institut fur Solare Energiesystemen). N-type mono crystalline cells would
provide Valoe with an opportunity to base its next generation modules on the
leading technology also in terms of cells. An N-type cell with Valoe's advanced
back contact technology is expected to achieve or even exceed a module peak
power of more than 290 Wp that Valoe has been targeting. This kind of module
would be competitive compared to any development version of any manufacturer
and remarkably better than commonly used modules in the market. Cooperation
with the new cell supplier has begun well and cells have been delivered as
agreed upon.
At the end of the second quarter the company signed its first manufacturing
partnership agreement. According to the information available to Valoe the
local financial negotiations of the partner are at the final stage and the
project may commence during the financial year 2015. However, on the date of
this Interim Report, it is not yet certain that the financing of the project
will be secured and that the project can be launched.
Valoe has made progress in its other business negotiations too. The company
finds it possible that another plant project still at its financing stage might
commence during the first quarter of 2016. Additionally, Valoe is having other
business negotiations that are at various stages. The company will disclose a
separate announcement if there will be remarkable progress in the negotiations.
The negotiations and their outcome involve financial risks as well as other
normal business risks. The negotiations are going on.
Valoe has started to look for a suitable manufacturing partner also for the
North American markets. Negotiations with potential partners were commenced
during the second quarter and are now continuing with a selected company. The
negotiation partners seem to be very interested in Valoe's technology and
plans. In North America solar energy is not yet as well established as in
Europe. There is barely any local production for PV modules. However, in the US
the economy is growing fast and there are signs of growing interest in reducing
emission, which creates fruitful base for new solar energy projects.
Additionally the market is expected to grow faster in the US than anywhere else
in the world.
Valoe strives to develop new pioneering CBS based modules as well as components
and production solutions for modules. If Valoe succeeds in its goal, future
users, component suppliers, manufacturers and developers of CBS based modules
will form their own ecosystem. If the ecosystem is strong enough it is expected
to draw in new manufacturing and other partners who operate in their own local
geographical areas. The partners can speed up commercialization of Valoe's
technology remarkably and enhance establishment of the technology in larger
geographical area compared to Valoe using only its own resources.
VALOE'S STRATEGY
The net sales of Valoe's Clean Energy segment will be generated by the
following four product concepts:
1. Photovoltaic modules and systems
Sales of modules and small photovoltaic systems are probably Valoe's most
visible but in terms of revenue potential the smallest product group. All
Valoe's PV modules are manufactured at the company's factory in Mikkeli for the
time being. They are mainly delivered to the company's distributors and future
manufacturing partners. Further, the company provides solar power plants and
systems to its customers in Finland and abroad. Valoe enhances the sale of its
modules and solar systems in Finland by starting to build sales channels
systematically.
Current capacity of the company's Mikkeli factory is designed to annually
produce PV modules worth max EUR 6 - 8 million at the current market prices.
Thus, the module sales do not form a major part of the sales of the company.
The first module manufacturing recipes fully developed by Valoe has passed the
demanding test programs of the German Fraunhofer ISE, which enables Valoe's
modules to be certified in all market areas the company is targeting.
2. Production lines and related components
Typically, manufacturers operating in the developing markets, e.g. in China,
could be interested in investing in new production lines. These Valoe's
potential customers are producing traditional stringed H-pattern modules.
According to the information available to Valoe many manufacturers are going to
start to manufacture next generation modules using the CBS technology. At least
one of the world's biggest manufacturers has already announced in public that
it will start using CBS technology. These kinds of customers usually have their
own module manufacturing recipe and require only production equipment or lines.
According to Valoe's estimation typical price of production equipment or a
production line for solar modules is EUR 4 - 8 million.
The company is having negotiations with several potential customers interested
in Valoe's production technology for delivering solar module plants, production
lines or parts for the lines worldwide. The value of the contracts Valoe is
negotiating for varies from approximately 2 million Euros to approximately 60
million Euros.
If Valoe is able to achieve market position it is targeting as a supplier of
CBS production lines expected development in the market facilitates orders for
tens of production lines in the next five years. The company estimates it will
get the first order for this kind of production line in 2015.
3. Manufacturing partners
For the moment Valoe is negotiating for cooperation agreements with several
potential manufacturing partners who as newcomers in the market would commit
themselves to both Valoe's production technology and module manufacturing
recipe. In these cases Valoe would provide a partner with a turnkey delivery
project and commit to minority shareholding in a manufacturing company if
required. Manufacturing partners operate mainly in developing markets and
produce solar energy modules for local and nearby markets. Value of a typical
turnkey plant delivery is more than ten million euros. Valoe is aiming to sign
at least 10 manufacturing partnership contracts in the next five years. The
first contract is expected to be signed already this year provided local
project financing will be secured.
4. Special components
Special components are the most important part in Valoe's strategy and most
remarkable in terms of net sales potential. Valoe's first component is
Conductive Back Sheet (CBS) developed by the company. All back contact modules
require conductive back sheet in order to function. One normal size production
line using back contact technology needs approximately 300,000 - 500,000
conductive back sheets in a year when operating at full capacity. Based on
current estimation, considering price level in the near future, each production
line will annually require back sheets worth approximately 5 - 11 million
Euros.
In the future Valoe is planning to offer its partners other components too.
These components might include e.g. various intelligent components, components
relating to energy storages and special back contact based cell technologies.
The non-binding objectives of Valoe for both market share and the number of
partners are ambitious and attainment of the objectives involves significant
risks. However, Valoe views it has a technological concept that provides the
company a good position to achieve the objectives. Attainment of the objectives
is subject to sufficient financing among other things.
OPERATING ENVIRONMENT
Valoe operates in industries applying clean energy technology. Valoe's
operating environment is global. The company's customers operating in the clean
energy business are companies that provide products and services locally and/or
worldwide.
Valoe's key products and services have been designed for the photovoltaic
market. Modern next generation conductive back sheet based solar modules can be
manufactured with Valoe's own module manufacturing recipe and automated
production.
In the market, general attitude to the solar energy investments improved
clearly already at the end of 2013. The same trend continued the whole year
2014 and still during 2015. Many solar module manufacturers with solid market
position have started to plan investing in capacity, partly to increase the
amount of their production capacity and partly to replace production capacity
for old H-pattern solar modules.
Valoe has previously informed that it views the focus of its future business
will be in the developing countries. This view has further strengthened in
2015. Many of the mega trends such as national climate protection objectives;
increasing industrialisation in the developing countries and increasing energy
self-sufficiency, favour local manufacturing of solar modules. For the moment
major part of the world's solar module manufacturing is concentrated in China.
Modules are manufactured in large labour-intensive units and are delivered from
there to the world market to be installed.
In the developed countries solar electricity is mainly produced in large solar
power plants located in open landscape feeding electricity to main grid. In
this kind of power plants logistics costs, among others, can be optimized and
such parameters as module's capacity per square meter have not had major
importance. In the developing countries logistics costs, in particular, are
significant and demand is focused on so called mini grid systems where solar
power plants have been decentralized and new local grid is built around them.
Grids are connected to each other and to new small power plants as electricity
consumption, distribution and production increases steadily. Electricity
production is decentralized and electricity is distributed through a new type
of grid infrastructure. Small power plants are often so called hybrids where
solar power plants are operated together with diesel, water and wind power
plants in same grid and where various energy storages can be integrated.
In an environment described above a local producer has much better
possibilities to control logistics costs and adopt legislation favouring local
production. Many of the partners Valoe is negotiating with have noticed that
local production costs are clearly lower than prices of modules imported from
China. When modules are produced locally possibilities to control the quality
increase, too. In Valoe's view CBS based modules have typically solid quality
which improves module capacity in most of the cases.
MARKET OUTLOOK
Demand for high capacity modules has increased in the EU, US and Japanese
markets as well in the last six months. Valoe is having negotiations on
delivering solar modules developed by the company to these markets. According
to Valoe's plans major part of Valoe's modules to be sold by module
distributors in the future will be manufactured by Valoe's manufacturing
partners.
As announced on 21 August 2012 Valoe has decided not to give any financial
guidance for the time being. Though the company's transition to a company
providing solely clean energy solutions, especially PV solutions, is completed,
the company cannot yet give any financial guidance for 2015 as the guidance
would be fully depended on execution of the first manufacturing partnership
agreements that are not yet secured.
LONG-TERM OBJECTIVES FOR MANAGING DIRECTOR
Based on Valoe's experience in the clean energy business so far and knowledge
of technological development in the industry as well as the company's
evaluation of market development the Board of Directors of the company has set
the long-term financial objectives for Managing on 12 November 2014. The
objectives have been disclosed in the Interim Report for the third quarter of
2014. As a part of preparation of this Interim Report the Board of Directors
has resolved to review the objectives set for the Managing Director at the
beginning of December 2015. The time of the review is connected to the schedule
of the local financing negotiations relating to the first manufacturing
partnership agreement. The company has previously estimated that the result of
the negotiations will be known by the end of November 2015.
The long-term objectives set for Managing Director and realization of the
company's business model involve significant risks and the objectives set for
Managing Director should not be considered as the company's financial guidance.
The long-term objectives set for Managing Director and their attainment fully
depend on sufficiency of the company's financing. On the reporting period Valoe
succeeded in rearranging its loans. Many of Valoe's financers subscribed for
the convertible bond I/2015 too. Also new investors subscribed for the
convertible bond I/2015 with subscription period ended on 9 October 2015, which
improved the company's financial position and equity ratio remarkably.
FINANCING
Cash flow from business operations before investments in January - September
was EUR -1.6 million (EUR -3.4 million). Trade receivables at the end of the
reporting period were EUR 0.4 million (EUR 0.9 million). Net financial items
amounted to EUR 0.6 million (EUR 0.5 million).
At the end of September the equity ratio of Valoe Group was -151.2 percent
(-37.6 %) and equity per share was EUR -0.012 (EUR -0.005). The equity ratio
including capital loans was -78.7 percent (-12.6 %). At the end of the
reporting period, the Group's liquid assets totaled EUR 1.0 million (EUR 0.9
million) and unused export credit limits and bank guarantee limits amounted to
EUR 0.0 million (EUR 0.0 million). The equity ratio is decreased by the losses
and write-downs of Valoe Corporation's closed subsidiary in Beijing.
The financing situation of Valoe has improved remarkably due to the successful
Convertible Bond I/2015, however, it continues to be tight until the company's
cash flow has turned positive. The company is planning to get long-term
financing that according to the company's current plans will be done by
arranging a share issue to investors in Finland and abroad. The schedule of a
possible share issue is not yet certain and it will unlikely be started during
2015. In terms of the short-term financing of the company, Valoe's preliminary
object is to turn the cash flow before investments with the company's current
cost structure into profit as soon as possible.
Should there be delays in getting new orders or should the market conditions
weaken compared to the company's current view, changing orders into sales may
slow down and have a major impact in the schedule in which the cash flow of the
business operations turns positive. In such case the financing situation of the
company would tighten and might jeopardize the company's current operation.
As the company has previously informed negotiations for deliveries of
production technology have made progress. However, Valoe's financing situation
continues to be tight. The sufficiency of the company's financing for the next
twelve months involves very significant risks. Valoe believes it will start the
first deliveries to its manufacturing partners yet during the year 2015. If the
payment terms Valoe has quoted will be accepted as such and the company is able
to arrange financing for the delivery time, it would lead the cash flow from
operations to turn positive and thus no other financing would be needed.
Neither it is certain that deliveries will commence and the payment terms will
be accepted nor the company has sufficient cash flow to cover its costs at the
moment. A delay in terms of delivery contracts for production technology could
tighten the company's cash situation fast as the company has committed to repay
a remarkable part of its loans by the end of March 2016.
During the reporting period Valoe has agreed with Danske Bank Plc on extending
the overdraft facility of EUR 0.95 million available to the company until 31
March 2016. Further, Valoe has agreed with Danske Bank Plc that the export
credit limit of EUR 0.65 million will be repaid in installments by 31 March
2016. Valoe has agreed with Savcor Group Oy on extending the loan period of a
convertible bond of ca. EUR 0.364 million until 31 March 2016. Out of Savcor
Invest B.V.'s loan of EUR 1 million a total of ca. EUR 0.876, including
interests, was converted to Valoe's Convertible Bond I/2015 and the rest of the
loan i.e. ca. EUR 0.324 million has been extended until 31 March 2016. SCI
Invest Oy's convertible bond of ca. EUR 0.841 million, including interests, has
been converted to loan shares of Valoe's Convertible Bond I/2015.
In order to strengthen Valoe's capital structure the company resolved to issue
a Convertible Bond of EUR 5,000,000 at the most at the end of May. Due to
oversubscription the maximum amount of the Convertible Bond was increased to
EUR 7,700,000. The Convertible Bond was fully subscribed and the Board of
Directors of Valoe approved all subscriptions on 9 October 2015. One loan share
of EUR 0.01 pursuant to the Promissory Note entitles the Promissory Note Holder
to subscribe for one new share. Based on the subscriptions made pursuant to the
loan shares Valoe shall issue a maximum amount of 770,000,000 new Valoe shares.
The loan period and the conversion period expire on 1 August 2018.
RESEARCH AND DEVELOPMENT
The knowledge and competence Valoe has gained so far and technological success
of the company's products have based on significant investments in the research
and development. The module developed by Valoe and its production technology
have already proven to be well functional and the targets set for the research
and development have been exceeded. In the future, commercial success will
highly depend on how well the research and development will succeed.
Valoe's strategically important products have already been tested and are
functional. Additionally, international evaluations and the markets have proved
Valoe's ability to gain competitive edge in technologies used for cells and
modules. If Valoe's research and development succeeds in utilizing the
technological advantages it will further improve the company's commercial
opportunities. The company continues to make significant investments in
research and development and will utilize both national and European research
funding to finance that.
The Group's research and development costs during the January - September
period amounted to EUR 0.9 million (EUR 1.3 million) or 158.1 (22.5) percent of
net sales. The research and development costs of the Group's continuing
operations during the January - September period totaled EUR 0.9 million (EUR
0.8 million) or 181.1 (103.7) percent of net sales.
INVESTMENTS
Gross investments in the continuing operations during January - September
period amounted to EUR 0.3 million (EUR 0.1 million). The most part of the
investments on the reporting period and almost all of the investments on the
corresponding period were in development costs.
PERSONNEL
At the end of September the Group employed 20 (26) people, out of which 19
persons worked in Finland and 1 person in the USA. During the reporting period
the Group's salaries and fees totaled EUR 1.1 million (EUR 2.7 million).
SHARES AND SHAREHOLDERS
Valoe's share capital amounted to EUR 80,000.00 at the end of the reporting
period. The number of shares was 862,472,136. The company has one series of
shares, which confer equal rights in the company. Valoe did not own any of its
own shares at the end of the reporting period.
The company had a total of 6,154 shareholders at the end of September 2015, and
20.4 percent of the shares were owned by foreigners. The ten largest
shareholders held 79.8 percent of the company's shares and voting rights on 30
September 2015.
The largest shareholders on 30 September 2015
shares percent
1 SAVCOR GROUP OY 328 451 387 38,08
2 SAVCOR GROUP LIMITED 133 333 333 15,46
3 GASELLI CAPITAL OY 95 000 000 11,01
4 KESKINÄINEN ELÄKEVAKUUTUSYHTIÖ ETERA 63 673 860 7,38
5 SAVCOR INVEST B.V. 39 374 994 4,57
6 FRATELLI OY 9 223 250 1,07
7 SCI INVEST OY 6 870 645 0,80
8 NORDEA PANKKI SUOMI OYJ 4 479 655 0,52
9 HUHTALA KAI 3 960 248 0,46
10 VUORENMAA TIMO ANTERO 3 959 860 0,46
OTHERS 174 144 904 20,19
TOTAL 862 472 136 100,00
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The list of the largest shareholders does not include the changes in ownership
that would realize if subscriptions of the Convertible Bond I/2015 approved on
9 October 2015 would be converted to shares at a price of EUR 0.01 in the
future. Subscriptions for a total of EUR 7,700,000 were made which equals to
max. 770,000,000 new shares in Valoe.
The members of the Board of Directors and the President and CEO, either
directly or through companies under their control, held a total of 377,195,785
shares in the company on 30 September 2015, representing about 43.7 percent of
the company's shares and voting rights. Iikka Savisalo, Valoe's Managing
Director, either directly or through companies under his control, held a total
of 374,697,026 shares in the company and 15,852,856 options connected to bond
I/2012.
The price of Valoe's share varied between EUR 0.007 and 0.02 during the January
- September period. The average price was EUR 0.012 and the closing price at
the end of September EUR 0.014. A total of 77.2 million Valoe shares were
traded at a value of EUR 0.9 million during the January - September period. The
company's market capitalization at the end of September stood at EUR 12.1
million.
During the reporting period the Board of Directors of Valoe resolved the terms
and conditions of a stock option scheme. The maximum total number of stock
options issued is 130,000,000 and they entitle their owners to subscribe for a
maximum total of 130,000,000 new shares in the company. The stock options will
be issued for free. The Board of Directors shall annually decide upon the
distribution of the stock options to the key employees of the Group. Of the
stock options, 50,000,000 are marked with the symbol 2015A, 40,000,000 are
marked with the symbol 2015B and 40,000,000 are marked with the symbol 2015C.
Ingman Finance Oy converted during the reporting period and Keskinäinen
Vakuutusyhtiö Etera immediately after the reporting period the loan capital and
interests of the Convertible Bond I/2013 to loan shares in the Convertible Bond
I/2015.
Options connected to bond I/2012 are held by SCI Invest Oy and Savcor Group Oy.
SHARE ISSUE AUTHORIZATIONS IN FORCE
There is no share issue authorizations in force as the Convertible Bond I/2015
has been fully subscribed and the company has resolved on the stock option
scheme during the reporting period.
RISK MANAGEMENT, RISKS AND UNCERTAINTIES
Valoe's Board of Directors is responsible for the control of the company's
accounts and finances. The Board is responsible for internal control, while the
President and CEO handles the practical arrangement and monitors the efficiency
of internal control. Business management and control are taken care of using a
Group-wide reporting and forecasting system.
The purpose of risk management is to ensure that any significant business risks
are identified and monitored appropriately. The company's business and
financial risks are managed centrally by the Group's financial department, and
reports on risks are presented to the Board of Directors as necessary.
Due to the small size of the company and its business operations, Valoe does
not have an internal auditing organization or an audit committee.
Valoe's objective is to achieve a strong market position as a provider of, in
various geographical areas, locally produced high-quality photovoltaic modules.
Achievement of the objectives as well as realization of the transformation
involves risks. Even though Valoe's strategy and objectives are based on market
knowledge and technical surveys, the risks are significant and it is not
certain if the company reaches all or part of the targets set for it. Valoe's
future outlook will be highly dependent on the company's ability to reach the
targeted market position in the global photovoltaic module market as well as on
the company's financing.
The Convertible Bond I/2015 enabled the company to stabilize its short-term
financing remarkably. Also negotiations for deliveries of production technology
have made good progress. However, the financing situation of Valoe continues to
be tight. The sufficiency of the company's financing and working capital for
the next twelve months involve very significant risks. According to the current
view of Valoe's management the company continues to need financing until the
cash flow from the business operations has turned positive or a long-term
financing arrangement has been secured with the planned share issue. The
company will have a significant deficit in its working capital until the first
delivery of production technology for solar modules will start to generate
positive cash flow. If the company does not succeed to secure sufficient
financing, the continuity of the company's operation may be jeopardized. If the
company does not receive new orders as fast as it expects or if the market
situation gets worse it may take longer time to turn orders into revenue. This
would affect significantly the schedule in which cash flow before investments
would turn positive. In such a case the company's financing situation would
further tighten.
In the Auditor's Report in the Annual Report 2014 the company's auditor drew
attention to the financial risk management with a so called Emphasis of Matter
as follows: “Without qualifying our opinion, we draw attention to the basis of
preparation of the financial statements and to the note 29. Financial risk
management. The financial statements have been prepared under the going concern
assumption. The continuity of operations requires the company to be able to
obtain supplementary funding and to negotiate changes to the terms of payment
during 2015. The company continues negotiating with its major financers and
shareholders on measures to strengthen the financing situation until the
company's cash flow is expected to turn positive. The sufficiency of the
company's financing and working capital for the next twelve months involve very
significant risks. According to the current view of Valoe's management the
company needs to obtain a bridging loan until long-term financing arrangement
has been secured and the cash flow of the business operations of the company
has turned positive. Negotiations on bridging financing are going on. The
company will have a significant deficit in its working capital until the first
delivery of production technology for solar modules will start to generate
positive cash flow. If the company does not succeed in securing sufficient
short-term and long-term financing, the continuity of the company's operation
may be jeopardized. The valuation of the assets is based on the going concern
assumption. If the estimates are not achieved the assets may become impaired.”
Attainment of local project financing for the first manufacturing partnership
agreement involves risks. It is not certain that a local project financing
facility for building a module plant pursuant to the first manufacturing
partnership agreement will be secured. If local project financing is not
available the manufacturing partnership agreement in question and a relating
potential order will not materialize.
In terms of profitability, the most essential risks are related to the
achievement of a sufficient invoicing volume in the Clean Energy business
segment.
The execution of the non-binding cooperation agreement signed between Valoe and
Vikram Solar involves typical business risks. Arrangements pursuant to the
non-binding cooperation agreement are subject to several terms and conditions,
especially to Valoe's financing.
The execution of the non-binding Memorandum of Understanding signed with a
Chinese photovoltaic module manufacturer involves significant risks. The final
terms of an agreement are still under negotiations, thus execution of the
agreement is not yet guaranteed. Additionally, the agreement is subject to
Valoe's financing.
The long-term objectives set for the Managing Director involves also
significant risks and the long-term objective should not be considered as the
company's financial guidance. Even though the objectives are based on market
knowledge and technical surveys, the risks are significant and it is not
certain if the Managing Director reaches all or part of the targets set for him
within estimated timetable. The company will review the long-term objectives
set for the Managing Director at the beginning of December 2015 as noted
earlier in this Interim Report.
The non-binding objectives of Valoe for both market share and the number of
partners are ambitious and attainment of the objectives involves significant
risks. However, Valoe views it has a technological concept that provides the
company a good position to achieve the objectives. Attainment of the objectives
is subject to sufficient financing.
Relating to taxation of the Beijing factory in China a claim of EUR 0.7 million
against Savcor Group Ltd was booked in the other operating income of the
company's continuing operations in the first quarter of 2015. The outcome of
the claim involves risks.
The closing of the latter part (30 %) of the transaction between Valoe and FTTK
Company Limited involves risks. In terms of the latter part of the transaction
the deal was supposed to be closed by 1 March 2015, however, the closing of the
transaction has been postponed. The postponement relates to a dispute between
the parties relating to division of costs of unfinished customer projects. The
dispute has been referred to arbitration on 24 June 2015.
Other risks connected to Valoe have been presented in more detail in the Annual
Report for 2014.
In Mikkeli, 4 September 2015
Valoe Corporation
BOARD OF DIRECTORS
For more information please contact:
Valoe: Iikka Savisalo, President and CEO, tel. +358 40 521 6082,
iikka.savisalo@valoe.com
Consolidated statement of comprehensive income
(unaudited)
1 000 EUR 7-9/2015 7-9/2014 1-9/2015 1-9/2014 1-12/2014
--------------------------------------------------------------------------------
Continuing
operations
Net sales 163 128 523 778 841
Cost of sales -240 -230 -674 -5 074 -8 398
--------------------------------------------------------------------------------
Gross profit -77 -102 -151 -4 296 -7 557
Other operating 1 18 872 27 23
income
Product development -307 -348 -947 -807 -1 109
expenses
Sales and marketing -144 -152 -484 -564 -840
expenses
Administrative -168 -226 -724 -837 -1 146
expenses
Other operating -10 -66 -12 -133 -256
expenses
Operating profit -704 -876 -1 447 -6 609 -10 885
Financial income 104 485 215 812 903
Financial expenses -277 -244 -802 -1 309 -1 707
Profit before taxes -877 -636 -2 035 -7 106 -11 689
from continuing
operations
Income taxes 0 -21 1 -24 -4
Profit/loss for the -877 -657 -2 034 -7 130 -11 693
period from
continuing
operations
Discontinued
operations
Profit/loss after 12 70 -111 -477 -712
tax for the period
from discontinued
operations
Profit/loss for the -866 -586 -2 145 -7 607 -12 405
period
--------------------------------------------------------------------------------
Profit/loss
attributable to:
Shareholders of the -866 -586 -2 145 -7 607 -12 405
parent company
Earnings/share -0,001 -0,0007 -0,002 -0,009 -0,015
(diluted), eur
Earnings/share -0,001 -0,0007 -0,002 -0,009 -0,015
(basic), eur
Continuing
operations:
Earnings/share -0,001 -0,0008 -0,002 -0,009 -0,014
(diluted), eur
Earnings/share -0,001 -0,0008 -0,002 -0,009 -0,014
(basic), eur
Profit/loss for the -866 -586 -2 145 -7 607 -12 405
period
Other comprehensive
income
Translation -28 -533 -362 -654 -1 114
difference
Net other comprehensive income to be
reclassified to
profit or loss in -28 -533 -362 -654 -1 114
subsequent periods
Total comprehensive -894 -1 119 -2 507 -8 261 -13 519
income for the
period
--------------------------------------------------------------------------------
Total comprehensive
income attributable
to:
Shareholders of the -894 -1 119 -2 507 -8 261 -13 519
parent company
Consolidated statement of financial position
(unaudited)
1 000 EUR 30.9.2015 30.9.2014 31.12.2014
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Property, plant and equipment 52 3 182 44
Consolidated goodwill 441 441 441
Other intangible assets 3 682 4 042 4 092
Available-for-sale investment 9 9 9
Deferred tax assets 0 5 0
Total non-current assets 4 185 8 820 4 586
--------------------------------------------------------------------------------
Current assets
Inventories 117 359 67
Trade and other non-interest-bearing 1 799 2 197 2 013
receivables
Cash and cash equivalents 976 212 161
Total current assets 2 891 2 768 2 240
--------------------------------------------------------------------------------
Assets classified as held for sale 27 128 733
Total assets 7 103 11 715 7 560
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity attributable to shareholders of the
parent company
Share capital 80 3 425 3 425
Other reserves 0 49 460 49 460
Translation difference -644 178 -281
Retained earnings -10 170 -57 702 -62 500
-10 735 -4 639 -9 897
--------------------------------------------------------------------------------
Non-controlling interests 9 0 8
Total equity -10 726 -4 639 -9 888
--------------------------------------------------------------------------------
Non-current liabilities
Non-current loans 5 035 1 547 1 571
Deferred tax liabilities -1 25 0
Total non-current liabilities 5 034 1 572 1 571
--------------------------------------------------------------------------------
Current liabilities
Current interest-bearing liabilities 5 397 7 448 7 357
Trande and other payables 6 799 7 906 6 693
Current provisions 0 128 0
Total current liabilities 12 195 15 482 14 050
--------------------------------------------------------------------------------
Liabilities directly associated with assets 600 0 1 828
classified as held for sale
Total liabilities 17 829 17 054 17 449
--------------------------------------------------------------------------------
Equity and liabilities total 7 103 12 415 7 560
--------------------------------------------------------------------------------
Consolidated statement of cash flows
(unaudited)
1 000 EUR 1-9/20 1-9/20 1-12/20
15 14 14
--------------------------------------------------------------------------------
Cash flow from operating activities
Income statement profit/loss from continuing -2 035 -7 106 -11 689
operations before taxes
Income statement profit/loss from discontinued -111 -477 -712
operations before taxes
Income statement profit/loss before taxes -2 145 -7 583 -12 401
------------------------
Non-monetary items adjusted on income statement
--------------------------------------------------------------------------------
Depreciation and + 662 4 571 7 844
impairment
Gains/losses on disposals +/- 0 -319 -298
of non-current assets
Unrealized exchange rate +/- -230 -648 -256
gains (-) and losses (+)
Other non-cash +/- -746 89 87
transactions
Financial income and + 817 1 145 1 060
expense
Total cash flow before change in working capital -1 642 -2 746 -3 964
--------------------------------------------------------------------------------
Change in working capital
Increase (-) / decrease -22 85 179
(+) in inventories
Increase (-) / decrease 1 598 349 289
(+) in trade and other
receivables
Increase (+) / decrease -1 225 -595 -516
(-) in trade and other
payables
Change in provisions -89 -21 -5
Change in working capital 262 -182 -53
--------------------------------------------------------------------------------
Adjustment of financial items and taxes to cash-based
accounting
Interest paid - 194 241 308
Interest received + 1 2 3
Other financial items - 60 217 -304
Taxes paid - 0 16 17
Financial items and taxes -253 -472 -17
--------------------------------------------------------------------------------
NET CASH FLOW FROM BUSINESS OPERATIONS -1 633 -3 399 -4 034
CASH FLOW FROM INVESTING ACTIVITIES
Investments in tangible and intangible assets - 289 849 1 084
Proceeds on disposal of tangible and intangible + 34 24 29
assets
Loans granted - 160 0 0
Loans granted to associated companies - 0 103 103
Repayment of loan receivables + 263 0 0
Acquisition of subsidiaries and other business - 0 1 1
units
Disposal of + 0 2 648 3 048
subsidiaries and
other business units
----------------------------
NET CASH FLOW FROM INVESTMENTS -152 1 720 1 890
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from share issue + 0 2 400 2 400
Proceeds from non-current borrowings + 3 258 256 256
Repayment of non-current borrowings - 8 7 7
Proceeds from current borrowings + 44 3 738 3 737
Repayment of current borrowings - 695 3 693 3 878
NET CASH FLOW FROM FINANCING ACTIVITIES 2 599 2 694 2 509
--------------------------------------------------------------------------------
INCREASE (+) OR DECREASE (-) IN CASH FLOW 813 1 015 364
Consolidated statement of changes in equity
(unaudited
)
1 000 EUR Share Other Transl Distribut Retaine Total Non-co Total
capit reser ation able d ntroll equity
al ves diffe non-rest earnin ing
rence ricted gs inter
equity ests
fund
--------------------------------------------------------------------------------
31.12.2014 3 425 4 908 -281 44 552 -62 500 -9 897 8 -9 888
own equity - - - - 1 670 1 670 - 1 670
component
of the
convertib
le bond
Transfer - - - -520 520 0 - 0
between
items
Reduction -3 345 -4 908 - -44 032 52 285 0 - 0
of the
share
capital
Translatio - - -362 - - -362 - -362
n
differenc
e,
comprehen
sive
income
Profit/los - - - - -2 145 -2 145 - -2 145
s for the
period
30.9.2015 80 0 -644 0 -10 170 -10 735 9 -10 726
The presentation of the own equity component of the convertible bond is defined
during Q3 2015, they are transfered from distributable non-restricted equity
fund to retained eranings. After the transfer the value of the distributable
non-restricted equity fund is zero also in consolidated accounts.
1 000 EUR Share Other Transl Distribut Retaine Total Non-co Total
capit reser ation able d ntroll equity
al ves diffe non-rest earnin ing
rence ricted gs inter
equity ests
fund
--------------------------------------------------------------------------------
31.12.2013 3 425 4 908 833 39 661 -50 095 -1 269 0 -1 269
Directed share 204
issue
Share - - - 4 882 - 4 882 - 4 882
issue
Share - - - -194 -194 - -194
issue
expenses
Translatio - - -654 -654 - -654
n
differenc
e,
comprehen
sive
income
Profit/los - - - - -7 607 -7 607 - -7 607
s for the
period
30.9.2014 3 425 4 908 178 44 552 -57 702 -4 639 0 -4 639
Segment
information
(unaudited)
From 1 January 2013 Valoe reported of three business segments to comply with the
company's Cleantech strategy. The segments were Laser and Automation
Applications (LAS), Life Cycle Management (LCM) and Clean Energy (CCE). 17
September Valoe announced that it has transfered the company's electronics
automation business into Cencorp Automation Oy, a fully-owned subsidiary of
Valow. Further, in accordance to the agreement signed earlier, FTTK Company
Limited has purchased 70 percent of the shares in Cencorp Automation Oy.
Further FTTK has used its option to purchase the remaining 30 percent of the
shares in Cencorp Automation Oy and the parties have signed an agreement on
exercising the option in December 2014. In consequence of the sale of the
shares Valoe reports the financial figures relating to the electronics
automation business, i.e. LAS and LCM segments, as discontinued operations from
Q3/2014 and segment information is divided into continuing and discontinued
operations. Segment information is not available after operating profit in
profit and loss statement. Financial income and expenses or balance sheet items
are not booked to segments. Valoe's new segment information is based on the
management's internal reporting and on the organisation structure. During the
year 2015 the discontinued operations include the finishing up of few remaining
projects of the electronics automation business sold to FTTK and finalising the
sale of the shares.
1 000 EUR 7-9/2015 7-9/2014 1-9/2015 1-9/2014 1-12/2014
--------------------------------------------------------------------------------
Net sales
Cencorp 163 128 523 778 841
Clean
Energy
-
continui
ng
operatio
ns
Discontin 18 1 207 76 5 204 5 665
ued
operatio
ns
Total 181 1 335 599 5 982 6 506
Operating
profit
Cencorp -704 -876 -1 447 -6 609 -10 885
Clean
Energy
-
continui
ng
operatio
ns
Discontin 12 70 -111 -476 -712
ued
operatio
ns
Total -693 -805 -1 558 -7 086 -11 597
EBITDA
Cencorp -486 -650 -785 -2 336 -3 342
Clean
Energy
-
continui
ng
operatio
ns
Discontin 12 136 -111 -179 -411
ued
operatio
ns
Total -474 -513 -896 -2 515 -3 753
Depreciation
Cencorp 219 226 662 1 073 1 318
Clean
Energy
-
continui
ng
operatio
ns
Discontin 0 66 0 298 301
ued
operatio
ns
Total 219 292 662 1 371 1 619
Impairment
Cencorp 0 0 0 3 200 6 225
Clean
Energy
-
continui
ng
operatio
ns
Discontin 0 0 0 0 0
ued
operatio
ns
Total 0 0 0 3 200 6 225
Discontinued operations
(unaudited)
17 September Valoe announced that it has transfered the company's electronics
automation business into Cencorp Automation Oy, a fully-owned subsidiary of
Valoe. Further, in accordance to the agreement signed earlier, FTTK Company
Limited has purchased 70 percent of the shares in Cencorp Automation Oy.
Further FTTK has used its option to purchase the remaining 30 percent of the
shares in Cencorp Automation Oy and the parties have signed an agreement on
exercising the option in December 2014. In consequence of the sale of the
shares Valoe reports the financial figures relating to the electronics
automation business as discontinued operations from Q3/2014.
The results and major classes of assets and liabilities of Cencorp's electronics
automation business are as follows:
1 000 EUR 1-9/2015 1-9/2014 1-12/2014
--------------------------------------------------------------------------------
Revenue 76 5 204 5 665
Expenses -187 -6 098 -6 824
Other opeating income 0 114 171
Impairment 0 0 0
Operating profit/loss -111 -780 -988
from discontinued
operation
--------------------------------------------------------
Gain on discontinued - 304 276
operations
Assets
Property, plant and 0 0 0
equipment
Other intangible assets 0 0 0
Inventories 0 128 28
Trade and other 27 0 705
non-interest-bearing
receivables
Cash and cash 0 0 0
equivalents
Assets classified as 27 128 733
held for sale
--------------------------------------------------------
Liabilities
Trande and other 544 0 1 683
payables
Provisions 56 0 145
Liabilities directly 600 0 1 828
associated with assets
classified as held for
sale
--------------------------------------------------------
Net assets directly -573 128 -1 094
associated with
disposal group
--------------------------------------------------------
Cumulative translation
difference
Net cash flow of
Cencorp's electronics
automation business:
1 000 EUR 1-9/2015 1-9/2014 1-12/2014
--------------------------------------------------------------------------------
Operating -445 n/a -1 858
Investing 96 n/a 2 701
(includes the return on sales
of discontinued operations
in 2014)
Earnings/share (basic), -0,0001 -0,001 -0,001
from discontinued
operations
Earnings/share -0,0001 -0,001 -0,001
(diluted) from
discontinued
operations
Key figures
(unaudited)
1 000 EUR 7-9/2015 7-9/201 1-9/20 1-9/20 1-12/201
4 15 14 4
--------------------------------------------------------------------------------
Net sales 163 128 523 778 841
Operating profit -704 -876 -1 447 -6 609 -10 885
% of net sales -432,2 -686,2 -276,8 -849,6 -1 294,2
EBITDA -486 -650 -785 -2 336 -3 342
% of net sales -297,9 -509,4 -150,2 -300,3 -397,4
Profit before taxes -877 -636 -2 035 -7 106 -11 689
% of net sales -538,2 -497,8 -389,1 -913,5 -1 389,8
Balance Sheet value 7 103 12 415 7 103 12 415 7 560
Equity ratio, % -151,2 -37,6 -151,2 -37,6 -130,8
Net gearing, % neg. neg. neg. neg. neg.
Gross investments 104 8 296 146 377
(continuing
operations)
% of net sales 63,7 5,9 56,5 18,8 44,9
Research and 307 348 947 807 1 109
development costs
(continuing oper.)
% of net sales 188,2 272,9 181,1 103,7 131,8
Order book 9 414 9 414 314
Personnel on average 21 55 23 90 74
Personnel at the end 20 26 20 26 26
of the period
Non-interest-bearing 6 799 7 906 6 799 7 906 8 376
liabilities
Interest-bearing 10 431 8 994 10 431 8 994 8 928
liabilities
Share key indicators
Earnings/share -0,001 -0,0007 -0,002 -0,009 -0,015
(basic)
Earnings/share -0,001 -0,0007 -0,002 -0,009 -0,015
(diluted)
Earnings/share -0,001 -0,0008 -0,002 -0,009 -0,014
(basic), from
continuing
operations
Earnings/share -0,001 -0,0008 -0,002 -0,009 -0,014
(diluted) from
continuing
operations
Equity/share -0,012 -0,005 -0,012 -0,005 -0,011
P/E ratio -13,95 -14,29 -5,63 -1,10 -0,61
Highest price 0,016 0,02 0,020 0,04 0,04
Lowest price 0,012 0,01 0,007 0,01 0,01
Average price 0,014 0,02 0,012 0,02 0,02
Closing price 0,014 0,01 0,014 0,01 0,01
Market 12,1 12,1 12,1 12,1 7,8
capitalisation, at
the end of the
period, MEUR
Calculation of Key
Figures
EBITDA, %: Operating profit +
depreciation +
impairment
------------------------- -------------------------
Net sales
---------
Equity ratio, %: Total equity x 100
------------------------- -------------------------
Total assets - advances
received
---------
Net gearing, %: Interest-bearing liabilities - cash and cash equivalents
and marketable
securities x 100
------------------------- -------------------------
Shareholders' equity +
minority interest
---------
Earnings/share Profit/loss for the
(EPS): period to the owner of
the parent company
------------------------- -------------------------
Average number of
shares adjusted for
share issue
---------
at the end of the financial year
Equity/share: Equity attributable to
shareholders of the parent company
------------------------- -------------------------
Undiluted number of
shares on the balance
sheet date
---------
P/E ratio: Price on the balance
sheet date
------------------------- -------------------------
Earnings per share
---------
Related party
transactions
(unaudited)
The Group has sold and purchased goods and services from companies in which the
majority holding and/or power of decision granting control of the company is
held by members of the Group's related parties. Sales of goods and services
carried out with related parties are based on market prices. Valoe Corporation
has also sold and purchased goods and services from its associated company,
Cencorp Automation Oy. Sales of goods and services carried out with the
associated company are based on the costs, according to the agreement. Cencorp
Automation Oy is not regarded as a related party in 2015.
The Group entered into the following
transactions with related parties:
1 000 EUR 1-9/2015 1-9/2014 1-12/2014
--------------------------------------------------------------------------------
Continuing
operations
Sales of goods and
services
Savcor companies 68 39 67
Cencorp Automation 0 0 19
Oy
Savcor Face Ltd 36 0 20
Others 0 0 0
Total 104 39 106
Purchases of goods
and services
Savcor companies 144 146 196
Savcor Face Ltd 43 24 36
SCI-Finance Oy 66 0 14
Others 22 7 0
Total 275 177 246
Interest income
Savcor companies 1 2 3
Interest expenses
and other
financial expenses
Savcor companies 111 149 213
SCI Invest Oy 45 45 60
Muut 36 0 0
Total 193 194 273
Discontinued
operations
Sales of goods and
services
Cencorp Automation 0 0 87
Oy
Purchases of goods
and services
Savcor companies 7 187 194
Savcor Face Ltd 0 40 46
Cencorp Automation 0 130 395
Oy
SCI-Finance Oy 8 0 30
Others 1 0 0
Total 16 357 665
Non-current 1 696 0 0
convertible
subordinated loan
from related
parties
Interest payable to 282 350 416
related parties
Other current 1 270 1 769 1 769
liabilities to
related parties
Current convertible 364 1 122 1 159
subordinated loan
from related
parties
Trade payables and
other
non-interest-beari
ng liabilities to
related parties 545 805 1 363
Trade and other 94 233 371
current
receivables from
related parties
From the beginnin of 2015 Savcor Group Limited in Australia is no longer part of
Savcor Group, and liabilities to the company are not included in related party
transactions.
SCI Invest Oy is a company under control of Iikka Savisalo, Cencorp's CEO.
1 000 EUR 1-9/2015 1-9/2014 1-12/2014
--------------------------------------------------------------------------------
Wages and
remuneration
Salaries of the 491 692 867
management and
Board
Fair values
(unaudited)
Carrying Fair value amount
1 000 EUR 30.9.2015 30.9.2015
--------------------------------------------------------------------------------
Financial assets
Available-for-sale investments 9 9
Trade and other receivables 1 826 1 826
Cash and cash equivalents 976 976
The fair value of trade and other receivables is expected to correspond to the
carrying amount due to their short maturity.
Financial liabilities
R&D loan, non-current 1 754 1 754
Other liabilities, non-current 3 281 0
Loans from financial institutions, current 1 598 1 598
Other liabilities, current 1 935 1 935
Trade payables and other non-interest-bearing 5 133 5 133
liabilities
The fair value of non-current liabilities is expected to correspond to the
carrying amount and recognized to their fair value when recorded. There has
been no significant change in common interest rate after the withdrawal of the
loans.
EUR 6.0 million out of trade payables and other current liabilites was overdue
at the end of the reporting period. That included EUR 3.4 million of Savcor
Face Bejing's overdue liabilities. During 2015 there was an increase of 0.2
million in Savcor Face Beijing's overdue liabilities, which was mainly caused
by exchange rate difference. In addition, an interest-bearing loan of EUR 0,5
million to Savcor Group Limited / The Savcor Creditors' Trust and an export
credit limit of EUR 0,6 million to Danske Bank were overdue.
Change in intangible and tangible assets
(unaudited)
1 000 EUR 30.9.2015 30.9.2014 31.12.2014
--------------------------------------------------------------------------------
Includes tangible assets, consolidated
goodwill and other intangible assets
Carrying amount, beginning of period 4 577 13 654 13 654
Depreciation and impairment -662 -5 949 -6 905
Additions 295 420 659
Disposals -34 -142 -142
Discontinued operations 0 -857 -2 955
Exchange rate difference 0 537 265
Carrying amount, end of period 4 176 7 664 4 577
Inventories
(unaudited)
1 000 EUR 7-9/20 7-9/20 1-9/20 1-9/20 1-12/2
15 14 15 14 014
--------------------------------------------------------------------------------
Impairment losses and reversals of
impairment losses for inventories
booked in Income Statement
Continuing operations
Impairment loss 0 90 0 719 939
Reversal of impairment loss 0 0 0 0 0
Discontinued operations
Impairment loss 0 0 0 0 0
Reversal of impairment loss 0 0 0 0 0
Commitments and contingent liabilities
(unaudited)
1 000 EUR 30.9.2015 30.9.2014 31.12.2014
-------------------------------------------------------------------------------
Loans from financial institutions 950 950 948
Promissory notes secured by pledge 12 691 12 691 12 691
Factoring loan and export credit limit 648 1 487 1 307
Trade receivables 0 373 91
Deposits 100 0 0
Promissory notes secured by pledge 12 691 12 691 12 691
Collaterals given from other short-term loans
Deposits 505 0 477
Operating leases - continuing operations
Payable within one year 0 0 0
Payable over one year 0 0 0
Commitments - continuing operations
Payable within one year 63 844 58
Payable over one year 0 810 0
Commitments - discontinued operations
Payable within one year 0 33 0
Payable over one year 0 0 0
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