2009-08-06 09:30:00 CEST
2009-08-06 09:30:03 CEST
REGULATED INFORMATION
Neomarkka - Interim report (Q1 and Q3)
EVEN MORE WEAKENED FINANCIAL SITUATION TURNED THE OPERATING RESULT INTO RED FIGURES
Neomarkka Plc INTERIM REPORT 6 August 2009 at 10.30 AM 1(16) NEOMARKKA PLC INTERIM REPORT 1.1. - 30.6.2009 EVEN MORE WEAKENED FINANCIAL SITUATION TURNED THE OPERATING RESULT INTO RED FIGURES -------------------------------------------------------------------------------- | KEY FIGURES | 4-6/ | 4-6/ | 1-6/ | 1-6/ | | | 2009 | 2008 | 2009 | 2008 | -------------------------------------------------------------------------------- | Turnover, EUR million, of which | 17.9 | 32.7 | 35.0 | 59.0 | -------------------------------------------------------------------------------- | - Cable business | 17.8 | 32.7 | 34.8 | 59.9 | -------------------------------------------------------------------------------- | - Other operations | 0.1 | 0.0 | 0.2 | -0.9 | -------------------------------------------------------------------------------- | Operating result, EUR million, of | -1.1 | 1.7 | -0.9 | 3.5 | | which | | | | | -------------------------------------------------------------------------------- | - Cable business | -0.8 | 2.0 | -0.5 | 5.0 | -------------------------------------------------------------------------------- | - Other operations | -0.3 | -0.3 | -0.4 | -1.5 | -------------------------------------------------------------------------------- | Profit or loss for the period, | -0.9 | 0.6 | -1.3 | 1.2 | | EUR million | | | | | -------------------------------------------------------------------------------- | Earnings per share, EUR | -0.15 | 0.11 | -0.20 | 0.20 | -------------------------------------------------------------------------------- Return on investment (ROI) during period under review was 0.0 % (4.4 %). Equity ratio is 48.2 % (47.1 %). MAJOR EVENTS DURING THE PERIOD UNDER REVIEW INDUSTRIAL PRIVATE EQUITY INVESTMENTS; Cable business The turnover of the second quarter increased about 5% compared to the previous quarter. The estimated increase in turnover and operating profit nonetheless was not reached. The operating result of the second quarter was EUR -0.8 million. Due to the general uncertainty in the global economy the construction and industrial investments output has remained low. The tightened competition lowered the market price of cables. The price of copper continued increasing and the price of aluminium increased slightly compared to the first quarter. The increase in the raw material prices could not totally be transferred into the sales prices. Furthermore the lower capacity usage of the factories deteriorated the result. In Russia the financial crisis has caused delays in customers' purchasing decisions. In addition the customers have continued decreasing their inventories. The demand for oil and gas industry cables has been moderate. The exchange rates of Russia's ruble (RUB) and Swedish krona remained weak in the second quarter. Especially the low exchange rate of Swedish krona has tightened the price competition on the Finnish market. The sales operations of Reka Cables have been reinforced by establishing a subsidiary to Norway. Various cost saving programs have been launched to boost the cost competence. The lay-offs of employees and officials agreed in spring started during the review period. Although the associated company Nestor Cables Ltd´s turnover during the review period was bigger than the turnover of the whole year 2008, the operating result of the review period was still negative. OTHER OPERATIONS Since Neomarkka has detached from its hedge based investments and bonds, are other operations than industrial investments, mainly investing cash funds. The ownership of private equity investments has remained the same, but its proportion of total investments is small. Therefore Neomarkka has given up the investment in securities -segment and reports other than industrial investments in other operations. The reference information in the statement of financial position has also been updated accordingly. The market risk of Neomarkka's investments is very low. Neomarkka's investments in bonds with attached credit default swap are under one year long and aimed at solid companies. The funds are mainly invested in time deposits. Regarding ownership relating private equity, no changes were made during the period. NEOMARKKA SHARES; PRICES AND VOLUMES TRADED Neomarkka Plc's B shares are listed on the NASDAQ OMX Helsinki. The closing price at the end of the review period was EUR 6.01 (EUR 9.73) per share. On 31 December 2008 the price was EUR 5.80 per share. The turnover of B share in the review period was 148,752 (252,298) shares. The volume corresponds to 2.5% (4.3%) of the number of all listed B-shares. The lowest B share quotation was EUR 4.45 (EUR 7.90) and the highest quotation was EUR 6.70 (EUR 10.50). The value of all company shares on 30 June 2009 amounted to EUR 36.1 million (EUR 58.5 million). FINANCIAL RESULT, STATEMENT OF FINANCIAL POSITION AND FINANCING The interim report has been drawn up in accordance with the IAS 34 requirements for interim reports. Same principles for drawing up consolidated financial statements have been followed as in the financial statement 2008 except for changes in IAS and IFRS standards that came into effect on financial period starting 1 January 2009 and on all periods starting after that. Furthermore the presentation of value changes of the derivative instruments in the consolidated income statement has been changed: The derivative instruments protecting the turnover are entered in the turnover and the changes in the raw material derivatives are entered in the materials (earlier in the other operating income and expenses). Also the changes in raw material derivatives under 12 months are entered in the materials. Longer than 12 months raw material derivatives are handled as financial income and/or expenses. The exchange rate differences of the long term intra-group loans are handled in translation differences in the consolidated statement of comprehensive income according to IAS 1. The interim report is unaudited. FINANCIAL RESULT The consolidated turnover totalled EUR 35.0 million in the review period (EUR 59.0 million in 2008), consisting of the turnover of the cable business and other operations. The turnover of the cable business in the review period was EUR 34.8 million (EUR 59.9 million in 2008). Operating loss for the review period was EUR -0.9 million (EUR 3.5 million), of which the operating loss of the cable business was EUR -0.5 million (operating profit EUR 5.0 million). The loss of the other operations consisted mainly of general administrative expenses. The net result for the review period was EUR -1.3 million (EUR 1.2 million). Earnings per share were EUR -0.20 (EUR 0.20). STATEMENT OF FINANCIAL POSITION AND FINANCING At the end of the review period the consolidated statement of financial position totalled EUR 96.7 million (EUR 116.9 million). At the end of the review period, the equity per share was EUR 7.74 (9.61) and the equity ratio was 48.2 % (47.1 %). To fulfil the working capital financing needs, Reka Cables has available short-term bank account credit limit of EUR 6.0 million and a factoring limit of EUR 7.5 million. The liquidity situation of the Group is good. INVESTMENTS The investments made in the review period relate to the cable business, totalling EUR 1.0 million (EUR 7.0 million). Long-term leases have been recognised as fixed assets under IFRS. The final purchase price of Reka Cables Ltd's share transaction made on 1 June 2007 has been confirmed. The preliminary purchase price was decreased by EUR 1.2 million. The final purchase price was EUR 24.6 million. The realised review of the purchase price signifies that Neomarkka Group received EUR 1.2 million and the related interest income of EUR 0.1 million. The amount of EUR 1.2 million has decreased the goodwill in Neomarkka's consolidated statement of financial position. The interest income was handled through the income statement. The effect of the purchase price review is shown in the interim report figures. SHAREHOLDERS' MEETING AND GOVERNANCE The Annual General Meeting (AGM) was held on 10 June 2009. The AGM resolved to accept the Annual Report, the Financial Statement and the Consolidated Financial Statements from fiscal period 2008 and accepted the proposal of the Board of Directors to pay dividend of EUR 0.25 per share. From the financial year 2007 a dividend of EUR 0.50 per share was paid. The AGM discharged the Board of Directors and the Managing Director for fiscal period 2008. The AGM resolved to elect six members to the Board of Directors of Neomarkka Plc and re-elected the following members: Matti Lainema as chairman of the Board, Pekka Soini as vice chairman and as members Ilpo Helander and Taisto Riski. Risto Kyhälä and Matti Lappalainen were elected as new members to the Board of Directors. The AGM resolved the annual remunerations to be paid to the members of the Board and committees and a bonus for the members of the Board. The AGM authorized the Board of Directors to decide on the acquisition of the company's own shares and to decide on an issue of new class B shares and on a transfer of class B treasury shares held by the company either against or without payment according to the proposal of the board. The AGM also authorized the Board of Directors to decide on a share issue to the company itself without payment. Neomarkka Plc acquired its own B shares during the review period. The total amount of acquired shares was 5,884 pieces in total EUR 33,109.95. The total value of the shares acquired by stock price, on 30 June 2009, totalled EUR 35,362.84. The interest of shares acquired of total shares was 0.10% and of total votes 0.07 %. The shares are acquired to be used in order to carry out acquisitions and other arrangements within the scope of the company's business operations, to improve the company's capital structure, as part of implementing the company's incentive scheme, or to be further transferred for other purposes or to be cancelled. On 9 June 2009, a total of 116,241 of the company's B shares were registered on Neomarkka Plc's joint book-entry account in Euroclear Finland Oy. No declaration for registration of the shares has been made, although ten years have passed since the end of the registration period, which was on 29 September 2007. The general meeting decided that the rights to such shares and the rights carried by such shares have been forfeited and that the shares will remain in the possession of the company. This decision may be executed once ten years have passed from the entry into force of the new Finnish Companies Act, aka year 2016. The AGM elected Authorized Public Accountants Ernst & Young Oy, with Authorized Public Accountant Heikki Ilkka as responsible auditor, as the auditor of the company for a term that expires at the end of the Annual General Meeting of 2010. Taisto Riski, Pekka Soini and Ilpo Helander, members of the Board of Directors, are the members of the new Audit Committee. The Managing Director of Neomarkka Plc is Markku E. Rentto. PERSONNEL The Group employed an average of 506 people (311). Group personnel numbered 518 on 30 June 2009, of which 515 were in the cable business. GROUP STRUCTURE AND SHAREHOLDERS Neomarkka Plc is the parent company in a Group that includes the fully owned subsidiaries Novalis Plc and Alnus Ltd with their subsidiaries. The domicile of the parent company is Hyvinkää. At the end of the review period, Neomarkka Plc had 12,709 (12,753) shareholders. The biggest shareholder Reka Ltd had a 50.76% (50.76%) interest at the end of the review period, with 65.77% (65.77%) of all votes. Neomarkka Plc is thus part of the Reka Group. Reka Ltd's domicile is Hyvinkää. At the end of the review period, the aggregate ownership of the ten largest shareholders was 60.69% (59.79%) of all shares and 72.67% (72.05%) of all votes. MAJOR EVENTS AFTER THE REVIEW PERIOD Neomarkka Plc published on 21 July 2009 a stock exchange release since the turnover and the operating result were lower than expected. ASSESSMENT OF UNCERTAINTY FACTORS AND BUSINESS RISKS The main financial risks of Neomarkka are currency, interest rate, commodity, liquidity, credit and investment market-risks. These financial risks and their hedging measures are explained further in notes to the financial statement for year 2008. In accordance with the updated strategy 2007, future risk factors are tied to the development of business operations of portfolio companies. At the moment there is one portfolio line of business, the cable business. The most significant risks at Reka Cables and OAO Expokabel are the development of the market situation, fluctuation in raw material prices and changes in exchange rates. In order to be aware of the risks and be prepared for them, Reka Cables Ltd has carried out an extensive risk-charting process. The company believes that the cable markets in Russia will grow and develop and has invested heavily in exploiting the business opportunities there. These investments include a risk that the growth in Russia will not take place according to expectations. Nestor Cables Ltd's business carries cable business risks and the risks involved in starting up a new company. Comments made in this report that do not refer to actual facts that have already taken place are future estimates. Such estimates include expectations concerning market trends, growth and profitability, and statements that include the terms ‘believe', ‘assume', ‘will be', or a similar expression. Since these estimates are based on current plans and estimates, they involve risks and uncertainty factors which may lead to results differing substantially from current statements. Such factors include 1) operating conditions, e.g. continued success in production and consequent efficiency benefits, availability and cost of production inputs, demand for new products, changing circumstances in respect of the acquisition of capital under acceptable conditions; 2) circumstances in the sector such as the intensity of demand for products, the competition, current and future market prices for the Group's products and related pricing pressures, the financial situation of the Group's customers and competitors, competitors' possible new competing products and 3) the general economic situation such as economic growth in the Group's main geographical market areas or changes in exchange rates and interest rates. PROSPECTS FOR THE NEAR FUTURE The prospects of the cable business are at the moment so indistinct that the increase in demand during the year-end 2009 can not be yet predicted. Therefore the operating result is also expected to be negative during the last part of the year. SUMMARY OF FINANCIAL STATEMENT AND NOTES -------------------------------------------------------------------------------- | CONSOLIDATED INCOME STATEMENT (IFRS) | | | | -------------------------------------------------------------------------------- | | 4-6/ | 4-6/ | 1-6/ | 1-6/ | -------------------------------------------------------------------------------- | EUR 1,000 | 2009 | 2008 | 2009 | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TURNOVER | 17,894 | 32,663 | 34,971 | 58,997 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in inventories of | 509 | 2,568 | 596 | 5,945 | | finished products and | | | | | | production in progress | | | | | -------------------------------------------------------------------------------- | Production for own use | 4 | 16 | 8 | 58 | -------------------------------------------------------------------------------- | Materials and services | -11,817 | -26,382 | -20,270 | -48,095 | -------------------------------------------------------------------------------- | Personnel expenses | -3,692 | -3,849 | -7,670 | -7,353 | -------------------------------------------------------------------------------- | Depreciation and impairment | -1,280 | -930 | -2,466 | -1,804 | -------------------------------------------------------------------------------- | Other operating income and | -2,684 | -2,352 | -6,065 | -4,231 | | expenses | | | | | -------------------------------------------------------------------------------- | | -18,960 | -30,929 | -35,867 | -55,480 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING RESULT | -1,066 | 1,734 | -896 | 3,517 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income | 674 | 641 | 1,098 | 646 | -------------------------------------------------------------------------------- | Financial expenses | -765 | -1,138 | -1,326 | -1,846 | -------------------------------------------------------------------------------- | Share of the result of | 0 | -201 | -202 | -287 | | associates | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit or loss before taxes | -1,157 | 1,036 | -1,326 | 2,030 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Taxes | 229 | -394 | 60 | -803 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit or loss for the period | -928 | 642 | -1,266 | 1,227 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit or loss attributable to: | | | | -------------------------------------------------------------------------------- | Equity holders of the parent | -915 | 642 | -1,227 | 1,227 | -------------------------------------------------------------------------------- | Minority interest | -13 | 0 | -39 | 0 | -------------------------------------------------------------------------------- | | -928 | 642 | -1,266 | 1,227 | -------------------------------------------------------------------------------- | Earnings per share (belonging | | | | | | to equity holders of the | | | | | | parent) | | | | | -------------------------------------------------------------------------------- | After and before dilution, | -0.15 | 0.11 | -0.20 | 0.20 | | EUR | | | | | -------------------------------------------------------------------------------- | Number of shares | 6014476 | 6020360 | 6014476 | 6020360 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS) | | -------------------------------------------------------------------------------- | EUR 1,000 | | | | | -------------------------------------------------------------------------------- | Profit or loss | -928 | 642 | -1,266 | 1,227 | -------------------------------------------------------------------------------- | Other comprehensive items: | | | | | -------------------------------------------------------------------------------- | Translation differences | 205 | -8 | -803 | -13 | | related to foreign units | | | | | -------------------------------------------------------------------------------- | Direct book entry to equity | -134 | 0 | -10 | 0 | -------------------------------------------------------------------------------- | Total | 72 | -8 | -812 | -13 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL COMPREHENSIVE INCOME | -856 | 634 | -2,078 | 1,214 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive income attributable | | | | | to: | | | | -------------------------------------------------------------------------------- | Equity holders of the parent | -843 | 634 | -2,039 | 1,214 | -------------------------------------------------------------------------------- | Minority interest | -13 | 0 | -39 | 0 | -------------------------------------------------------------------------------- | | -856 | 634 | -2,078 | 1,214 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) | -------------------------------------------------------------------------------- | EUR 1,000 | 30.6.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | A s s e t s | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | -------------------------------------------------------------------------------- | Goodwill | 3,354 | 4,587 | -------------------------------------------------------------------------------- | Other intangible non-current assets | 6,752 | 6,461 | -------------------------------------------------------------------------------- | Tangible non-current assets | 31,702 | 33,753 | -------------------------------------------------------------------------------- | Holdings in associates | 0 | 202 | -------------------------------------------------------------------------------- | Receivables | 403 | 414 | -------------------------------------------------------------------------------- | Deferred tax assets | 1,315 | 947 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT ASSETS | 43,526 | 46,365 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT ASSETS | | | -------------------------------------------------------------------------------- | Inventories | 18,157 | 17,903 | -------------------------------------------------------------------------------- | Available-for-sale financial assets | 3,733 | 3,733 | -------------------------------------------------------------------------------- | Sales receivables and other receivables | 12,910 | 13,831 | -------------------------------------------------------------------------------- | Tax receivables from the profit | 130 | 1,975 | -------------------------------------------------------------------------------- | Cash in hand and at bank | 18,214 | 22,319 | -------------------------------------------------------------------------------- | TOTAL CURRENT ASSETS | 53,143 | 59,761 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | A s s e t s | 96,669 | 106,125 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | S h a r e h o l d e r s´e q u i t y a n d | | | | l i a b i l i t i e s | | | -------------------------------------------------------------------------------- | CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY | | | | HOLDERS OF THE PARENT | | | -------------------------------------------------------------------------------- | Share capital | 24,082 | 24,082 | -------------------------------------------------------------------------------- | Premium fund | 66 | 66 | -------------------------------------------------------------------------------- | Reserve fund | 1,221 | 1,221 | -------------------------------------------------------------------------------- | Translation differences | -2,486 | -1,683 | -------------------------------------------------------------------------------- | Retained profit | 2,317 | 5,090 | -------------------------------------------------------------------------------- | Other unrestricted equity | 21,327 | 21,327 | -------------------------------------------------------------------------------- | Total equity attributable to equity holders | 46,527 | 50,103 | | of the parent | | | -------------------------------------------------------------------------------- | Minority interest | 94 | 159 | -------------------------------------------------------------------------------- | Total shareholders´ equity | 46,621 | 50,262 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 3,879 | 4,056 | -------------------------------------------------------------------------------- | Provisions | 820 | 802 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 19,727 | 21,193 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT LIABILITIES | | | -------------------------------------------------------------------------------- | Tax liabilities from the profit | 448 | 497 | -------------------------------------------------------------------------------- | Reserves | 163 | 163 | -------------------------------------------------------------------------------- | Short-term interest-bearing liabilities | 11,215 | 11,950 | -------------------------------------------------------------------------------- | Accounts payable and other liabilities | 13,796 | 17,202 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 50,048 | 55,863 | -------------------------------------------------------------------------------- | S h a r e h o l d e r s´e q u i t y a n d | 96,669 | 106,125 | | l i a b i l i t i e s | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY (IFRS) -------------------------------------------------------------------------------- | EUR | Share | Premi | Reser | Trans | Other | Retai | Total | Minor | Share | | 1000 | capit | um | ve | latio | unres | ned | | ity | holde | | | al | fund | fund | n | trict | profi | | | rs´ | | | | | | diffe | ed | t | | | equit | | | | | | rence | equit | | | | y | | | | | | s | y | | | | total | -------------------------------------------------------------------------------- | | | | | | | | | | | -------------------------------------------------------------------------------- | Shar | 24082 | 66 | 1221 | -145 | 21327 | 13056 | 59607 | 68 | 59675 | | ehol | | | | | | | | | | | ders | | | | | | | | | | | ' | | | | | | | | | | | equi | | | | | | | | | | | ty | | | | | | | | | | | 31.1 | | | | | | | | | | | 2.20 | | | | | | | | | | | 07 | | | | | | | | | | -------------------------------------------------------------------------------- | Tota | | | | -13 | | 1227 | 1214 | | 1214 | | l | | | | | | | | | | | comp | | | | | | | | | | | rehe | | | | | | | | | | | nsiv | | | | | | | | | | | e | | | | | | | | | | | inco | | | | | | | | | | | me | | | | | | | | | | -------------------------------------------------------------------------------- | Divi | | | | | | -3010 | -3010 | | -3010 | | dend | | | | | | | | | | | s | | | | | | | | | | | paid | | | | | | | | | | -------------------------------------------------------------------------------- | Acqu | | | | | | | 0 | | 0 | | isit | | | | | | | | | | | ion | | | | | | | | | | | of | | | | | | | | | | | own | | | | | | | | | | | shar | | | | | | | | | | | es | | | | | | | | | | -------------------------------------------------------------------------------- | Othe | | | | | | | 0 | | 0 | | r | | | | | | | | | | | chan | | | | | | | | | | | ges | | | | | | | | | | -------------------------------------------------------------------------------- | Shar | 24082 | 66 | 1221 | -158 | 21327 | 11273 | 57811 | 68 | 57879 | | ehol | | | | | | | | | | | ders | | | | | | | | | | | ' | | | | | | | | | | | equi | | | | | | | | | | | ty | | | | | | | | | | | 30.6 | | | | | | | | | | | .200 | | | | | | | | | | | 8 | | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR | Share | Premi | Reser | Trans | Other | Retai | Total | Minor | Share | | 1000 | capit | um | ve | latio | unres | ned | | ity | -hold | | | al | fund | fund | n | trict | profi | | | ers´ | | | | | | diffe | ed | t | | | equit | | | | | | rence | equit | | | | y | | | | | | s | y | | | | total | -------------------------------------------------------------------------------- | Shar | 24082 | 66 | 1221 | -1683 | 21327 | 5091 | 50104 | 159 | 50263 | | ehol | | | | | | | | | | | ders | | | | | | | | | | | ' | | | | | | | | | | | equi | | | | | | | | | | | ty | | | | | | | | | | | 31.1 | | | | | | | | | | | 2.20 | | | | | | | | | | | 08 | | | | | | | | | | -------------------------------------------------------------------------------- | Tota | | | | -803 | | -1237 | -2039 | -39 | -2078 | | l | | | | | | | | | | | comp | | | | | | | | | | | rehe | | | | | | | | | | | nsiv | | | | | | | | | | | e | | | | | | | | | | | inco | | | | | | | | | | | me | | | | | | | | | | -------------------------------------------------------------------------------- | Divi | | | | | | -1504 | -1504 | | -1504 | | dend | | | | | | | | | | | s | | | | | | | | | | | paid | | | | | | | | | | -------------------------------------------------------------------------------- | Acqu | | | | | | -33 | -33 | | -33 | | isit | | | | | | | | | | | ion | | | | | | | | | | | of | | | | | | | | | | | own | | | | | | | | | | | shar | | | | | | | | | | | es | | | | | | | | | | -------------------------------------------------------------------------------- | Othe | | | | | | | 0 | -26 | -26 | | r | | | | | | | | | | | chan | | | | | | | | | | | ges | | | | | | | | | | -------------------------------------------------------------------------------- | Shar | 24082 | 66 | 1221 | -2486 | 21327 | 2317 | 46527 | 94 | 46621 | | ehol | | | | | | | | | | | ders | | | | | | | | | | | ' | | | | | | | | | | | equi | | | | | | | | | | | ty | | | | | | | | | | | 30.6 | | | | | | | | | | | .200 | | | | | | | | | | | 9 | | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT OF CASH FLOWS (IFRS) | 1.1.-30.6. | 1.1.-30.6. | | EUR 1,000 | 2009 | 2008 | -------------------------------------------------------------------------------- | OPERATING ACTIVITIES | | | -------------------------------------------------------------------------------- | Payments received from operating activities | 35,761 | 74,926 | -------------------------------------------------------------------------------- | Payments paid on operating activities | -35,505 | -68,308 | -------------------------------------------------------------------------------- | Paid interests and other financial expenses | -2,295 | -2,028 | -------------------------------------------------------------------------------- | Interests received and other financial | 238 | 574 | | incomes | | | -------------------------------------------------------------------------------- | Direct taxes paid | 1,123 | -1,198 | -------------------------------------------------------------------------------- | Total operating activities | -676 | 3,966 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INVESTING ACTIVITIES | | | -------------------------------------------------------------------------------- | Acquisition of subsidiaries and new business | -138 | -2 | -------------------------------------------------------------------------------- | Change in acquisition price of subsidiaries | 1,200 | 0 | -------------------------------------------------------------------------------- | Investments in tangible non-current assets | -461 | -7,374 | -------------------------------------------------------------------------------- | Investments in intangible non-current assets | -363 | 0 | -------------------------------------------------------------------------------- | Total investing activities | 238 | -7,376 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | FINANCING ACTIVITIES | | | -------------------------------------------------------------------------------- | Acquisition of own shares | -33 | 0 | -------------------------------------------------------------------------------- | Increase in loans | 17 | 7,141 | -------------------------------------------------------------------------------- | Decrease in loans | -1,833 | -1,288 | -------------------------------------------------------------------------------- | Payments of financial leasing | -374 | -276 | -------------------------------------------------------------------------------- | Dividends paid | -1,393 | -2,956 | -------------------------------------------------------------------------------- | Total financing activities | -3,616 | 2,621 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | CASH FLOW FOR THE PERIOD | -4,054 | -789 | -------------------------------------------------------------------------------- | Liquid funds at beginning of the period | 22,320 | 23,086 | -------------------------------------------------------------------------------- | Exchange rate differences | -52 | 22 | -------------------------------------------------------------------------------- | LIQUID FUNDS AT END OF PERIOD | 18,214 | 22,319 | -------------------------------------------------------------------------------- NOTES TO THE ACCOUNTS The interim report has been drawn up in accordance with the IAS 34 requirements for interim reports. PRINCIPLES FOR DRAWING UP THE INTERIM REPORTS Neomarkka has applied the same principles for drawing up the interim reports as in the financial statement 2008 except for changes in IAS and IFRS standards that are in force in financial periods beginning 1 January 2009 and after that. Furthermore the presentation of value changes of the derivative instruments in the consolidated income statement has been changed: The derivative instruments protecting the turnover are entered in the turnover and the changes in the raw material derivatives are entered in the materials (earlier in the other operating income and expenses). Also the changes in raw material derivatives under 12 months are entered in the materials. Longer than 12 months raw material derivatives are handled as financial income and/or expenses. The change of IAS 1 standard effects the consolidated income statement, the consolidated statement of changes in shareholders' equity and the presentation of equity in the consolidated statement of financial position. According to the new IFRS 8 standard, the segment reporting is based on the management's internal reporting. The accounting principles have not changed. Applying IFRS 8 enables that the assets and liabilities can be allocated more specifically than before. As complementary information the distribution of turnover per product group and per sales area are presented. The reference data has been converted to correspond the changes that came into effect on 1 January 2009. IAS 23-, IAS 27-, IFRS 2- and IAS 32 -standards have also been changed. The changes are effective on financial periods beginning 1 January 2009, but have no significant effect on the Group's figures. SEGMENT INFORMATION -------------------------------------------------------------------------------- | 30.6.2009 | Industrial | Other | Eliminations | Group total | | | Investment; | operations | and | | | | Cable | | balancing | | | | business | | | | -------------------------------------------------------------------------------- | EUR 1,000 | | | | | -------------------------------------------------------------------------------- | Turnover | 34,809 | 207 | -45 | 34,971 | -------------------------------------------------------------------------------- | Segment | -451 | | | -451 | | operating | | | | | | profit | | | | | -------------------------------------------------------------------------------- | Unallocated | | -445 | | -445 | | items | | | | | -------------------------------------------------------------------------------- | Operating | -451 | -445 | | -896 | | profit | | | | | -------------------------------------------------------------------------------- | Share of the | -202 | | | -202 | | result of | | | | | | associates | | | | | -------------------------------------------------------------------------------- | Unallocated | | | -168 | -168 | | items | | | | | -------------------------------------------------------------------------------- | Profit or loss | | | | -1,266 | | for the period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | | | | | -------------------------------------------------------------------------------- | Segment assets | 78,242 | | 0 | 78,242 | -------------------------------------------------------------------------------- | Unallocated | | 19,139 | -712 | 18,427 | | assets | | | | | -------------------------------------------------------------------------------- | Total assets | 78,242 | 19,139 | -712 | 96,669 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | | | -------------------------------------------------------------------------------- | Segment | 52,021 | | | 52,021 | | liabilities | | | | | -------------------------------------------------------------------------------- | Unallocated | | 12,355 | -14,329 | -1,974 | | liabilities | | | | | -------------------------------------------------------------------------------- | Total | 52,021 | 12,355 | -14,329 | 50,047 | | liabilities | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Assets - | 26,221 | 6,784 | 13,617 | 46,621 | | Liabilities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments | 963 | | 0 | 963 | -------------------------------------------------------------------------------- | Depreciations | -2,466 | | 0 | -2,466 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 30.6.2008 | Industrial | Other | Eliminations | Group total | | | Investment; | operations | and | | | | Cable | | balancing | | | | business | | | | -------------------------------------------------------------------------------- | EUR 1,000 | | | | | -------------------------------------------------------------------------------- | Turnover | 59,871 | -874 | | 58,997 | -------------------------------------------------------------------------------- | Segment | 4,972 | | | 4,972 | | operating | | | | | | profit | | | | | -------------------------------------------------------------------------------- | Unallocated | | -1,455 | | -1,455 | | items | | | | | -------------------------------------------------------------------------------- | Operating | 4,972 | -1,455 | | 3,517 | | profit | | | | | -------------------------------------------------------------------------------- | Share of the | -287 | | | -287 | | result of | | | | | | associates | | | | | -------------------------------------------------------------------------------- | Unallocated | | | -2,003 | -2,003 | | items | | | | | -------------------------------------------------------------------------------- | Profit or loss | | | | 1,227 | | for the period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | | | | | -------------------------------------------------------------------------------- | Segment assets | 83,311 | | 0 | 83,311 | -------------------------------------------------------------------------------- | Unallocated | | 33,610 | 0 | 33,610 | | assets | | | | | -------------------------------------------------------------------------------- | Total assets | 83,311 | 33,610 | 0 | 116,920 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | | | -------------------------------------------------------------------------------- | Segment | 53,780 | | | 53,780 | | liabilities | | | | | -------------------------------------------------------------------------------- | Unallocated | | 13,474 | -8,213 | 5,261 | | liabilities | | | | | -------------------------------------------------------------------------------- | Total | 53,780 | 13,474 | -8,213 | 59,042 | | liabilities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets - | 29,530 | 20,135 | 8,213 | 57,879 | | Liabilities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments | 6,957 | 0 | 0 | 6,957 | -------------------------------------------------------------------------------- | Depreciations | -1,793 | -11 | 0 | -1,804 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cable business turnover per product group | -------------------------------------------------------------------------------- | EUR million | 1-6/2009 | 1-6/2008 | -------------------------------------------------------------------------------- | LV energy | 13.8 | 19.6 | -------------------------------------------------------------------------------- | Power cable | 21.0 | 39.9 | -------------------------------------------------------------------------------- | Others | 0.0 | 0.4 | -------------------------------------------------------------------------------- | Total | 34.8 | 59.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cable business turnover per sales area | -------------------------------------------------------------------------------- | EUR million | 1-6/2009 | 1-6/2008 | -------------------------------------------------------------------------------- | EU -countries | 32.2 | 53.0 | -------------------------------------------------------------------------------- | Non-EU -countries | 2.6 | 6.9 | -------------------------------------------------------------------------------- | Total | 34.8 | 59.9 | -------------------------------------------------------------------------------- The three biggest customer groups of cable business are Onninen, Rexel and Sonepar, whose share of turnover is more than 10% respectively. -------------------------------------------------------------------------------- | CHANGE IN NON-CURRENT ASSETS | 1-6/2009 | 1-12/2008 | -------------------------------------------------------------------------------- | EUR 1,000 | | | -------------------------------------------------------------------------------- | Book value at beginning of period | 33,753 | 23,916 | -------------------------------------------------------------------------------- | Investment | 462 | 14,784 | -------------------------------------------------------------------------------- | Increase through company acquisition | 101 | 4,942 | -------------------------------------------------------------------------------- | Decrease | 0 | -5,471 | -------------------------------------------------------------------------------- | Depreciations | -2,148 | -3,449 | -------------------------------------------------------------------------------- | Translation differences | -466 | -969 | -------------------------------------------------------------------------------- | BOOK VALUE AT END OF PERIOD | 31,702 | 33,753 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONTINGENT LIABILITIES | | | -------------------------------------------------------------------------------- | EUR 1,000 | 30.6.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | Debts, on behalf corporate mortgages are | | | | given | | | -------------------------------------------------------------------------------- | Loans from financial institutions | 7,200 | 8,467 | -------------------------------------------------------------------------------- | Granted corporate mortgages | 15,000 | 15,000 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Debts, on behalf of securities or | | | | guarantees are given | | | -------------------------------------------------------------------------------- | Loans from financial institutions | 11,333 | 11,900 | -------------------------------------------------------------------------------- | Book value of pledged securities | 25,787 | 26,987 | -------------------------------------------------------------------------------- | Granted guarantees | 11,333 | 11,900 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OTHER COLLATERALS | | | -------------------------------------------------------------------------------- | Bond guarantees | 1,248 | 1,326 | -------------------------------------------------------------------------------- | Guarantees and payment commitments | 608 | 1,058 | -------------------------------------------------------------------------------- Payment commitments On 30 June 2009 the sales receivables concerned as security for the factoring credit were EUR 4.0 million (EUR 3.9 million 31 December 2008). The factoring credit on 30 June 2009 was EUR 3.5 million (EUR 3.5 million 31 December 2008). INVESTMENT COMMITMENTS Investment commitments on tangible non-current assets on 30 June 2009 totalled EUR 0.4 million (30 June 2008 EUR 0.9 million). DERIVATIVE CONTRACTS -------------------------------------------------------------------------------- | EUR 1,000 | 30.6.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | NOMINAL VALUES | | | -------------------------------------------------------------------------------- | Interest derivatives | | | -------------------------------------------------------------------------------- | Interest rate swaps | 0 | 14,590 | -------------------------------------------------------------------------------- | Interest rate ceiling derivatives | 9,800 | 9,800 | -------------------------------------------------------------------------------- | Foreign exchange derivatives | | | -------------------------------------------------------------------------------- | Currency options | 1,500 | 2,500 | -------------------------------------------------------------------------------- | Credit derivatives | | | -------------------------------------------------------------------------------- | Credit default swaps | 20,000 | 0 | -------------------------------------------------------------------------------- | Raw material derivatives | | | -------------------------------------------------------------------------------- | Price hedging for metals | 3,804 | 3,655 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | FAIR VALUES | | | -------------------------------------------------------------------------------- | Interest derivatives | | | -------------------------------------------------------------------------------- | Interest rate swaps | 0 | -315 | -------------------------------------------------------------------------------- | Interest rate ceiling derivatives | 0 | 28 | -------------------------------------------------------------------------------- | Foreign exchange derivatives | | | -------------------------------------------------------------------------------- | Currency options | -4 | -21 | -------------------------------------------------------------------------------- | Credit derivatives | | | -------------------------------------------------------------------------------- | Credit default swaps | -145 | 0 | -------------------------------------------------------------------------------- | Raw material derivatives | | | -------------------------------------------------------------------------------- | Price hedging for metals | 72 | -1,433 | -------------------------------------------------------------------------------- The loans of the Group have been partly hedged with interest rate ceiling derivatives. The nominal - and the fair value of the interest rate ceiling derivatives have been informed above. The interest rate ceiling derivatives will expire in June 2010. The interest rate swaps of the Group were expired in June 2009. -------------------------------------------------------------------------------- | RELATED PARTY EVENTS (REKA GROUP) | -------------------------------------------------------------------------------- | EUR 1,000 | 1-6/2009 | 1-6/2008 | -------------------------------------------------------------------------------- | Sales to Reka Group | 18 | 70 | -------------------------------------------------------------------------------- | Dividends to Reka Group | -764 | -1,528 | -------------------------------------------------------------------------------- | Other purchases from Reka Group | -600 | -495 | -------------------------------------------------------------------------------- | Sales receivables and other receivables at end of | 625 | 267 | | period | | | -------------------------------------------------------------------------------- | Non-current debts (financial leases) at end of | -8,862 | -8,304 | | period | | | -------------------------------------------------------------------------------- | Other debts at end of period | -299 | -399 | -------------------------------------------------------------------------------- | Guarantees received | 0 | 1,327 | -------------------------------------------------------------------------------- OAO EXPOKABEL Neomarkka has acquired supplementary shares from OAO Expokabel in year 2009 through public purchase offer. Shareholding before the public purchase offer was 81.27% and after 83.34%. The purchase price allocation after the public purchase offer has been made by using the original balance sheet values and exchange rate. Below the updated purchase price allocation after the public purchase offer. The purchase price allocation is preliminary. -------------------------------------------------------------------------------- | PURCHASE PRICE | Acquiree's | Fair value | Fair value | | ALLOCATION | carrying amount | adjustments | | | EUR 1,000 | before | | | | | combination | | | -------------------------------------------------------------------------------- | NET ASSETS ACQUIRED | | | | -------------------------------------------------------------------------------- | Intangible assets | 0 | 4 241 | 4 241 | -------------------------------------------------------------------------------- | Tangible assets | 175 | 4 892 | 5 067 | -------------------------------------------------------------------------------- | Inventories | 685 | 0 | 685 | -------------------------------------------------------------------------------- | Current receivables | 244 | 0 | 244 | -------------------------------------------------------------------------------- | Cash in hand and at bank | 133 | 0 | 133 | -------------------------------------------------------------------------------- | Short-term liabilities | -884 | 0 | -884 | -------------------------------------------------------------------------------- | Deferred tax liability | 0 | -2,192 | -2,192 | -------------------------------------------------------------------------------- | NET ASSETS ACQUIRED | | | 7,294 | -------------------------------------------------------------------------------- | Goodwill arising on | | | 123 | | acquisition | | | | -------------------------------------------------------------------------------- | TOTAL CONSIDERATION, | | | 7,417 | | SATISFIED BY CASH | | | | -------------------------------------------------------------------------------- | Net cash flow arising on acquisition: | | | -------------------------------------------------------------------------------- | Cash consideration, | | | -7,417 | | expert fees and taxes | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents | | | 133 | | acquired | | | | -------------------------------------------------------------------------------- | Net cash flow arising on | | | -7,284 | | acquisition: | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | AVAILABLE-FOR-SALE FINANCIAL ASSETS | Book value | Book value | | EUR 1,000 | 30.6.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | Private equity investments | | | -------------------------------------------------------------------------------- | Oulun Puhelin Holding Plc | 2,813 | 2,813 | -------------------------------------------------------------------------------- | Lännen Teletieto Ltd | 920 | 920 | -------------------------------------------------------------------------------- | Total available-for-sale financial | 3,733 | 3,733 | | assets | | | -------------------------------------------------------------------------------- CALCULATION OF KEY FIGURES -------------------------------------------------------------------------------- | Return on | = | Result before taxes + interest and | x 100 | | investment | | other financial expenses / | | -------------------------------------------------------------------------------- | (ROI) % | | [Balance sheet total - obligatory | | | | | provisions and non-interest bearing | | | | | liabilities] (average) | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | = | Shareholders' equity + minority | x 100 | | ratio, % | | interest minus deferred tax | | | | | liabilities / | | -------------------------------------------------------------------------------- | | | Balance sheet total - advances | | | | | received | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | = | Result for the period belonging to equity holders of the | | share (EPS), | | parent / | -------------------------------------------------------------------------------- | EUR | | Number of shares adjusted for share issues (average) | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity/share | = | Shareholders´ equity - minority interest minus deferred | | , EUR | | tax liabilities / | -------------------------------------------------------------------------------- | | | Number of shares adjusted for share issues at the | | | | | end of the financial period | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Market | = | (No. of series B shares - no. of own B shares) | | | capitalisati | | x closing price at period end + No. of series A | | | on | | shares x average share price under review | | | | | period | | -------------------------------------------------------------------------------- Helsinki, 6 August 2009 Neomarkka Plc Board of Directors pp. Sari Tulander CFO FURTHER INFORMATION: Markku E. Rentto, Managing Director, tel. +358 207 209 190 Sari Tulander, CFO, tel. +358 207 209 192 DISTRIBUTION NASDAQ OMX Helsinki Main media www.neomarkka.fi
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