2011-08-03 10:00:00 CEST
2011-08-03 10:00:08 CEST
REGULATED INFORMATION
Scanfil - Interim report (Q1 and Q3)
SIEVI CAPITAL PLC'S INTERIM REPORT 1 JANUARY - 30 JUNE 2011
SIEVI CAPITAL PLC INTERIM REPORT 3 AUGUST 2011 11.00 A.M.
SIEVI CAPITAL PLC'S INTERIM REPORT 1 JANUARY - 30 JUNE 2011
January - June
- Turnover totalled to EUR 120.8 million (1-6 2010: 94.7), up 27.6%
- Operating profit EUR 7.8 (7.7) million, 6.5% (8.2%) of turnover
- Profit for the review period was EUR 4.9 (5.9) million
- Earnings per share were EUR 0.08 (0.10)
April - June
- Turnover totalled EUR 62.0 million (Q2 2010: 53.9) up 15.2%
- Operating profit EUR 4.2 (6.2) million, 6.8% (11.6%) of turnover
- Profit was EUR 2.8 (3.9) million, 4.5% (7.3%) of turnover
- Earnings per share amounted EUR 0.05 (0.07)
Operating profit for 2010 includes a sales gain of EUR 2.5 million from a
property recognised in the second quarter. Operating profit excluding the
non-recurring item was 5.5% of turnover in January-June 2010 and 7.0% of
turnover in April-June 2010.
The continued favorable demand among Scanfil EMS Oy's professional electronics
customers particularly contributed to the increase in turnover.
Harri Takanen, President of Sievi Capital plc:
”The second quarter was challenging with regard to investment activity, with
public debts extensively pressing several markets down to levels that were
clearly lower than early in the year. However, Sievi Capital plc's defensive
investment allocation did partly provide protection from the market decline,
and its total impact remained relatively minor during the period under review.
Nokia Corporation's problems and the company's extremely poor share price trend
have, however, as an individual investment had a negative impact of
approximately EUR 1.6 million in the IFRS-compliant result of investment
activity compared to the beginning of the year.
With regard to contract manufacturing, Scanfil EMS Oy's sales to professional
electronics customers increased further, resulting in growth of total sales.
The operating result for the second quarter increased compared to the first
quarter. As part of the reorganisation of European operations, Scanfil EMS Oy
decided to concentrate Finnish operations to Sievi by the end of the year. The
aim is to further improve the cost-efficiency and performance of contract
manufacturing activity.”
DEVELOPMENT OF OPERATIONS
Sievi Capital plc
A serious corrective movement of the capital market began at the turn of
April-May. The risk-taking willingness of international investors weakened in
particular, as the uncertainty caused by the indebtedness of European states
that has already prevailed for a long time increased significantly, especially
with regard to Greece and Portugal. The exceptionally good development of the
securities market following the financial crisis in 2008-09 until the beginning
of this year also led to a significant repatriation of profits with the
different market parties assessing that a turn of the market trend is probable.
Corrective movement of the market was also strengthened by the FED's decision
to gradually withdraw its considerable stimulus programme during the summer and
thereby decrease market liquidity. Furthermore, the weaker financial indicators
across the world and in the United States in particular increased suspicions of
the sustainability of economic growth in the second quarter. During the period
under review, most stock investments and debt instruments with the highest risk
provided the weakest yield in the nervous market.
The interim report of the associated company Kitron ASA was published on 21
July 2011. According to the report, Kitron ASA's operations have performed
satisfactorily during the second quarter compared to both the previous quarter
and the comparison period the year before. The turnover for the first two
quarters increased by 2.8% compared to the previous year. The operating profit
for the second quarter reached the highest level for more than a year, mainly
as the result of the implemented streamlining measures. The operating profit
margin for the second quarter was 3.2%. Turnover for this year is estimated to
be on a par with the previous year, while profitability is expected to improve
due to the restructuring carried out in Sweden. Kitron ASA commenced operations
in the United States officially during the second quarter, and operations in
China will commence during the third quarter. The operations in Germany have
developed favourably, and the order backlog contains a promising volume of
minor orders. All new operations are expected to reach profitability during
2012.
With regard to the associated companies, the operations of Panphonics Oy and
iLOQ Ltd have developed positively during the first quarter, and both companies
have exceeded their sales objectives during the period under review. The
turnover of IonPhasE Oy, on the other hand, has not developed as forecasted
during the first two quarters due to occurred schedule delays. However,
interest in the final products shown by customers and project activity has been
at a favorable level.
In accordance with the resolution of the Annual General Meeting held on 13
April 2011, Scanfil plc's name was changed into Sievi Capital Oyj, in Finnish,
and Sievi Capital plc, in English, on 16 May 2011. As of 17 May 2011, Sievi
Capital plc's trading code is SCI1V.
Scanfil EMS Subgroup
The positive development of demand in the contract manufacturing market
continued during the period under review. The growth in turnover compared to
the corresponding period the previous year amounted to 27.6%. In particular,
demand among professional electronics customers remained at a high level, with
the increase in sales amounting to almost 45% compared to the corresponding
period the previous year. Professional electronics customers accounted for 58%
of total sales in the first half of the year (51% during the corresponding
period in 2010) and telecommunications customers for 42% (49%).
Scanfil EMS Oy aims to increase its customer portfolio in a controlled way in
order to decrease the company's dependence on a single industry or individual
customer. Professional electronics customers already come from several
industries, and the company is actively increasing its customer base further,
such as in the rapidly growing energy technology industry.
The company's measures to prepare for a lack of electronics components due to
the natural disaster in Japan were successful. Component availability did not
have much impact on production or deliveries during the period under review.
Scanfil EMS Oy underwent employer-employee negotiations during the period under
review, and based on the results of the negotiations, the Board of Directors of
Scanfil EMS Oy decided to close down the Vantaa plant, reorganise the
operations of the Sievi plant and to adjust the group administration functions
according to the new situation.
The reason for closing down the Vantaa plant is that a significant part of the
demand for the products manufactured at the plant is centralised in lower cost
countries. The majority of the plant's production will be moved to the group's
plants in China, and part of the production will be transferred to the Sievi
plant.
The Sievi plant's electronics production will transfer to the Suzhou plant in
China and the Pärnu plant in Estonia. The Sievi plant will focus on sheet metal
mechanics production and assembly of demanding products.
The operations of the Suzhou subsidiary in China on the new premises have
commenced as planned. The new premises have proven to be very functional from
the point of view of the plant's production, and the production capacity is in
efficient use. The company has ensured uninterrupted production and secured
electricity supply by obtaining a sufficient capacity of emergency power
generators.
The product development and marketing efforts of Scanfil EMS Oy's subsidiary
Greenpoint Oy concerning impulse sales concepts for fast moving consumer goods
began to yield results towards the end of the period under review. Orders for
the new products were received in June, and deliveries will commence during the
third quarter.
FINANCIAL DEVELOPMENT
Sievi Capital Group
The Group's turnover for January - June was EUR 120.8 (94.7) million, up 27.6%
year-on-year. Distribution of turnover based on the location of customers was
as follows: Finland 39% (32%), rest of Europe 23% (25%), Asia 37% (41%), USA 1%
(1%) and others 1% (1%).
The Chinese subsidiaries' sales accounted for 43% (44%) of the Group's sales
during the review period including deliveries to the Group's other plants.
Operating profit of the Group during the review period was EUR 7.8 (7.7)
million, representing 6.5% (8.2%) of turnover. Operating profit for 2010
includes a sales gain of EUR 2.5 million from a property, and operating profit
excluding the non-recurring item amounted to 5.5% of turnover. Earnings for the
review period amounted to EUR 4.9 (5.9) million. Earnings per share were EUR
0.08 (0.10) and return on investment was 6.6% (10.6%). An increase in
investment assets as the result of the EUR 40 million loan raised at the end of
2010 and a decrease in the fair value of equity investments due to the
uncertain market situation have contributed to the decrease in return on
capital employed.
The group's turnover for April-June was EUR 62.0 (53.9) million. Operating
profit for the second quarter amounted to EUR 4.2 (6.2) million, or 6.8%
(11.6%) of turnover. Operating profit excluding the non-recurring item was EUR
3.8 million in April-June 2010, or 7.0% of turnover. Profit for the quarter was
EUR 2.8 (3.9) million.
Scanfil EMS Subgroup
The turnover of contract manufacturing operations increased considerably
compared to the corresponding period of the previous year, amounting to EUR
120.8 (94.7) million in January-June. Operating profit also increased
considerably during the period under review, amounting to EUR 7.7 (4.7)
million, representing 6.4% (5.0%) of turnover. The result amounted to EUR 5.6
(2.8) million, or 4.7% (2.9%) of turnover. Measures to develop the operating
processes and the increase in turnover have contributed to the favorable
development of the profitability of the Scanfil EMS subgroup.
Return on investment was 14.9% (10.9%), equity ratio was 43.3% (42.2%) and
gearing 31.9% (1.7%). Return on investment has improved as the result of
favourable profit development. The change in gearing is the result of the EUR
40 million credit raised towards the end of 2010.
Turnover amounted to EUR 62.0 (53.9) million in April-June. Operating profit
for the second quarter was EUR 4.2 (3.5) million, or 6.7% (6.5%) of turnover.
Profit for the quarter was EUR 3.0 (2.1) million.
Investment activities
The investment activity of the Group's parent company, Sievi Capital plc, is
divided into financial investments and capital investments. The gains and
losses from investment activities are recognised under financial income and
expenses in the income statement.
In January-June recognised dividend and interest income and capital gains from
financial investments amounted to EUR 1.6 (1.7) million, realized sales losses
amounted to EUR 0 (-0.6) million, and changes of financial assets at fair value
through profit or loss amounted to EUR -2.2 (-0.5) million, resulting in a
total recorded value of EUR -0.5 (0.7) million. The financial income includes
dividend from Lännen Tehtaat Oyj, EUR 0.5 million.
In April-June, recognised income from investment activity amounted to EUR 1.3
(1.1) million, realized sales losses amounted to EUR 0 (-0.6) million, and
value changes of financial assets at fair value through profit or loss amounted
to EUR -1.8 (-1.1) million, resulting in a total recorded value of EUR -0.5
(-0.6) million. Sievi Capital plc's defensive investment allocation was as follows at the end
of June: financial investments 64% and capital investments 36%. The financial
investments were divided between ETF and equity investments, 14%, and money
market investments, 50%. The money market investments were divided as follows;
risk-free fixed-income investments 14%, low-risk investments 19% and
moderate-risk investments 67%.
No new capital investments were made during the period under review. The
Group's share of the associated companies' losses and goodwill amortisation
totalled EUR -0.9 million (including the results and goodwill amortisation of
Kitron ASA, iLOQ Oy, Panphonics Oy, IonPhasE Oy and Greenpoint Oy until 30 June
2011).
Lännen Tehtaat Oyj, which does not fulfil the definition of an associated
company, is measured at fair value, and the change in the value in the first
quarter was EUR -1.3 million; it is recognised in the fair value reserve under
equity, adjusted with tax liabilities, net EUR -1.0 million.
The result of investment activities before tax, including all financial and
capital investments, totaled EUR -1.4 (0.6) million in January-June.
FINANCING AND CAPITAL EXPENDITURE
The Group enjoys a strong financial position.
The consolidated balance sheet totalled EUR 241.0 (207.5) million. Liabilities
amounted to EUR 86.1 (49.4) million, EUR 46.1 (49.4) million of which were
non-interest-bearing and EUR 40.0 (0.0) million interest-bearing. The equity
ratio was 64.3% (76.2)% and gearing -24.6% (-47.4)%.
Financial assets totalled EUR 78.2 (74.9) million, of which EUR 25.8 (39.1)
million has been deposited in bank accounts and in time deposits with maturity
of three months or less.
An additional EUR 52.4 (35.7) million of financial assets was invested in
financial instruments, mainly in bonds, credit linked notes, structured
investment instruments and ETF and equity investments. In compliance with the
IFRS, the investments have been measured at fair value. The net result for
January - June includes EUR -2.2 (-0.5) million of change in the fair value of
the investments, comprised mainly of the decrease in the price of the Nokia
Corporation shares by EUR -1.6 million.
Cash flows from operating activities in review period of January - June was EUR
6.5 (2.9) million positive. The change in working capital during the period
amounted to EUR 0.9 (-1.6) million. Cash flow from investment activities, EUR
-30.8 (0.0) million, consists mainly of financial investments by the parent
company. Cash flow from financing activities, EUR -6.9 (-18.9) million,
includes payment of dividends and the repayment of a loan taken by the Estonian
subsidiary of the previous year.
Gross investments in fixed assets totalled EUR 1.5 (1.4) million, which is 1.2%
(1.5%) of turnover. Depreciations were EUR 2.4 (2.5) million.
In the consolidated statement of comprehensive income, the change in
translation differences, EUR -2.9 million, is due to the translation of the
equity of the Chinese subsidiaries into the euro. The currency of China,
renminbi, is tied-up with the US dollar and has weakened more than 5% during
the first half of the year with the weakening of the US dollar. Changes in
exchange rates have not had a significant effect on the result of operational
activity due to the business structure.
BOARD OF DIRECTORS' AUTHORISATION
The Annual General Meeting decided on 13 April 2011 according to the Board of
Directors' proposal to authorize the Board of Directors to decide on the
acquisition of the Company's own shares with distributable assets.
The Board of Directors has no existing share issue authorisations or
authorisations to issue convertible bonds with warrants.
OWN SHARES
On 30 June 2011, the company owned a total of 2,983,831 of its own shares that
represented 4.9% of the company's share capital and votes.
No changes have taken place in the numbers of own shares during the period
under review.
SHARE TRADING AND SHARE PERFORMANCE
The highest trading price during the review period was EUR 3.15 and the lowest
EUR 2.39, the closing price for the period standing at EUR 2.48. A total of 1
048 237 shares were traded during the period, corresponding to 1.7% of the
total number of shares. The market value of the shares on 30 June 2011 was EUR
150.6 million.
PERSONNEL
Sievi Capital Group's personnel averaged 2,104 (1,924) employees during the
review period. At the end of the period, the Group employed 2,102 (2,008)
people, of whom 423 (427) worked in the company's Finnish units and 1,679
(1,536) in the company's units outside Finland. In all, 80% (76) % of the
Group's personnel were employed by subsidiaries outside Finland on 30 June
2011.
FUTURE PROSPECTS
Sievi Capital plc will continue to implement its confirmed investment strategy
through active shareholding. The uncertain economic situation and the market
slump offer new interesting opportunities for mergers and acquisitions. Sievi
Capital plc is active in the market, looking for new capital investments in its
current and new lines of business in order to ensure a good return on its
investments and growth potential for its operations.
The demand outlook for the company's contract manufacturing operations (Scanfil
EMS Oy) for 2011 is positive with regard to professional electronics customers.
Predicting the development of demand by telecommunications customers is more
uncertain. On the whole, the company still expects the sales of contract
manufacturing operations to increase from the level of the previous year.
The company expects its turnover for 2011 to increase from the level of 2010,
while the result will be satisfactory.
OPERATIONAL RISKS AND UNCERTAINTIES
The most significant short-term risk associated with investment activities can
be realized if the global economy's on-going recovery slows down or state debt
problems are aggravated further. Citizens' discontent may increase further
around the world and cause entirely new extensive unrest. Increasing prices of
raw materials and foodstuffs will deteriorate the growth outlook of the global
economy if prices remain at a level exceeding the average for too long. On the
other hand, accelerating economic growth and return to a growth track following
stimulus measures will result in an increase in inflation expectations, which
might lead to uncontrollably accelerating inflation worldwide. Tightening
financial policy following inflation, on the other hand, could result in a
significant increase in interest rates in several countries. Furthermore,
interest rates may increase in an uncontrolled way if the state debt crisis
escalates into the banking sector and mutual trust between banks deteriorates.
All of these alternatives would have immediate impact on the stock market and
be visible as increasing market volatility.
The short-term risks of contract manufacturing are associated with the
development of the global economy. Slowing economic growth or economic
contraction may impair the development of the contract manufacturing market and
impair the company's turnover and profit.
In other respects, the risks facing Sievi Capital's business have remained
essentially the same. Risks and risk management are described in greater detail
on the company's website under Corporate Governance and in the notes to the
consolidated financial statements.
ACCOUNTING PRINCIPLES
The interim report has been prepared in accordance with the IAS 34 Interim
Financial Reporting standard, applying the following accounting policies with
the financial statements for 2010.
Individual figures and grand totals of tables have been rounded to the nearest
million euros, so they will not always add up. The figures are unaudited.
Consolidated Income Statement
EUR million 4 - 6 4 - 6 1 - 6 1 - 6 1 - 12
2011 2010 2011 2010 2010
Turnover 62.0 53.9 120.8 94.7 219.3
Other operating income 0.0 2.8 0.1 3.0 3.3
Changes in inventories of finished goods 0.7 0.6 0.8 1.0 1.3
and work in progress
Expenses -57.4 -49.6 -111.4 -88.5 -204.5
Depreciation -1.1 -1.3 -2.4 -2.5 -5.0
Operating profit 4.2 6.2 7.8 7.7 14.4
Financial income and expenses -0.6 -1.0 -0.6 0.3 3.0
Share in the associated company's profit -0.3 -0.1 -0.9 -0.1 -2.0
Profit before taxes 3.3 5.2 6.3 8.0 15.4
Income taxes -0.5 -1.3 -1.4 -2.0 -4.5
Net profit for the period 2.8 3.9 4.9 5.9 10.9
Attributable to:
Equity holders of the parent 2.8 3.9 4.9 5.9 10.9
Earnings per share for profit attributable
to
shareholders of the parent:
basic earnings per share ( EUR) 0.05 0.07 0.08 0.10 0.19
The company does not have items that might dilute the earnings
per share.
Consolidated Statement of Comprehensive Income
EUR million 4 - 6 4 - 6 1 - 6 1 - 6 1 - 12
2011 2010 2011 2010 2010
Net profit for the period 2.8 3.9 4.9 5.9 10.9
Other comprehensive income:
Available-for-sale investments -1.5 -0.2 -1.0 0.4 0.7
Translation differences -0.1 5.1 -2.9 8.1 5.5
Other comprehensive income, net of tax -1.6 5.0 -3.9 8.5 6.3
Total Comprehensive Income 1.2 8.9 1.0 14.4 17.2
Attributable to:
Equity holders of the parent 1.2 8.9 1.0 14.4 17.2
Consolidated Statement of Financial Position
EUR million
30.6.2011 30.6.2010 31.12.2010
Assets
Non-current assets
Property, plant and equipment 32.8 31.3 34.5
Goodwill 2.4 2.4 2.4
Other intangible assets 3.5 1.0 3.5
Shares in associated companies 24.8 1.9 25.7
Available-for-sale investments 8.2 11.2 9.5
Financial assets at fair value through profit 23.1 17.8 16.6
or loss
Receivables 0.8 0.2
Deferred tax assets 0.8 0.1 0.3
Total non-current assets 96.4 65.7 92.8
Current assets
Inventories 36.2 34.5 36.8
Trade and other receivables 53.0 50.1 53.6
Advance payments 0.3 0.1 0.3
Financial assets at fair value through profit 29.3 18.0 7.7
or loss
Available-for-sale investments, cash 13.6 27.9 41.0
equivalents
Cash and cash equivalents 12.2 11.2 16.9
Total current assets 144.6 141.8 156.3
Total assets 241.0 207.5 249.1
Shareholder's equity and liabilities
Equity
Share capital 15.2 15.2 15.2
Share premium account 16.1 16.1 16.1
Treasury shares -8.9 -8.9 -8.9
Translation differences 2.8 8.2 5.7
Other reserves 5.8 5.9 6.2
Retained earnings 123.9 121.5 126.5
Total equity 154.9 158.0 160.8
Non-current liabilities
Deferred tax liabilities 0.6 0.8 1.1
Provisions 4.1 4.9 4.4
Interest bearing liabilities 35.6 35.6
Other liabilities 1.0 1.0
Total non-current liabilities 41.2 5.8 42.0
Current liabilities
Trade and other liabilities 39.7 41.7 39.2
Current tax 0.8 1.9 2.6
Interest bearing liabilities 4.4 4.4
Total current liabilities 44.9 43.7 46.3
Total liabilities 86.1 49.4 88.3
Total shareholder's equity and liabilities 241.0 207.5 249.1
Consolidated Cash Flow Statement
EUR million 30.6.2011 30.6.2010 31.12.2010
Cash flow from operating activities
Net profit 4.9 5.9 10.9
Adjustments for the net profit 5.0 0.9 4.8
Change in net working capital 0.9 -1.6 -12.3
Paid interests and other financial expenses -0.5 -0.3 -0.4
Interest received 0.2 0.3 0.5
Taxes paid -4.0 -2.3 -3.7
Net cash from operating activities 6.5 2.9 -0.3
Cash flow from investing activities
Investments in tangible and intangible assets -1.3 -1.4 -9.0
Sale of tangible and intangible assets 0.0 7.5 7.6
Purchase of investments -33.8 -18.7 -25.8
Proceeds from sale of investments 3.6 11.6 33.4
Purchase of associated companies -24.1
Granted loans -0.6 -0.2
Interest received from investments 0.3 0.5 1.0
Dividends received from investments 1.0 0.5 1.1
Net cash from investing activities -30.8 0.0 -15.9
Cash flow from financing activities
Proceeds from short-term loans 5.0
Repayment of short-term loans -5.0
Proceeds from long-term loans 40.0
Repayment of long-term loans -12.0 -12.0
Dividends paid -6.9 -6.9 -6.9
Net cash from financing activities -6.9 -18.9 21.1
Net increase/decrease in cash and cash -31.2 -16.0 4.8
equivalents
Cash and cash equivalents at beginning of 57.9 51.2 51.2
period
Changes in exchange rates -0.9 3.9 1.9
Cash and cash equivalents at end of period 25.8 39.1 57.9
Statement of changes in consolidated equity
EUR million
Equity attributable to equity holders of the parent company
Share
Share premium Treasury Translation Other Retained Equity
capital account shares differences reserves earnings total
Equity
--------------------------------------------------------------------------------
1.1.2011 15.2 16.1 -8.9 5.7 6.2 126.5 160.8
Total comprehensive income -2.9 -1.0 4.9 1.0
Payment of dividends -6.9 -6.9
Transfer to funds 0.5 -0.5 0
Equity
--------------------------------------------------------------------------------
30.6.2011 15.2 16.1 -8.9 2.8 5.8 123.9 154.9
Equity attributable to equity holders of the parent company
Share
Share premium Treasury Translation Other Retained Equity
capital account shares differences reserves earnings total
Equity
--------------------------------------------------------------------------------
1.1.2010 15.2 16.1 -8.9 0.1 4.7 123.3 150.5
Total comprehensive income 8.1 0.4 5.9 14.4
Payment of dividends -6.9 -6.9
Transfer to funds 0.8 -0.8 0
Share based 0.0 0.0
compensation
Equity
--------------------------------------------------------------------------------
30.6.2010 15.2 16.1 -8.9 8.2 5.9 121.5 158.0
Key indicators
1 - 6 1 - 6 1 - 12 2011 2010 2010
Return on equity, % 6.2 7.7 7.0
Return on investment, % 6.6 10.6 8.7
Interest-bearing liabilities, EUR million 40.0 40.0
Gearing, % -24.6 -47.4 -26.2
Equity ratio, % 64.3 76.2 64.6
Gross investments in fixed assets, EUR million 1.5 1.4 10.1
% of net turnover 1.2 1.5 4.6
Personnel, average 2 104 1 924 1 992
Earnings per share, EUR 0.08 0.10 0.19
Shareholders´ equity per share, EUR 2.68 2.74 2.78
Number of shares at
the end of period, 000´s 60 714 60 714 60 714
- not counting own shares 57 730 57 730 57 730
- weighted average 57 730 57 730 57 730
The company has a EUR 40 million loan in connection with which the company has
entered into interest and
currency swap agreements to convert the SEK-denominated principal and cash flows
of instalments
and interest payments into euros. The interest and currency swap agreement fully
hedges the instalments
and interest payments against fluctuations in exchange and interest rates.
Owing to the nature of the sector, the company´s order book covers only a short
period of time and does not
give an accurate picture of future development.
Segment information
EUR million 1 - 6 1 - 6 1 - 12
2011 2010 2010
Turnover
Europe 71.5 54.5 122.8
Asia 53.2 44.3 107.9
Turnover between segments -3.9 -4.0 -11.4
Total 120.8 94.7 219.3
Operating profit
Europe 3.4 3.7 3.9
Asia 4.5 4.0 10.5
Total 7.8 7.7 14.4
Assets
Europe 73.3 69.1 76.8
Asia 72.9 75.8 69.6
Goodwill 2.4 2.4 2.4
Financial assets 92.3 60.2 100.3
Total 241.0 207.5 249.1
The financial assets of investment activities comprise all of Sievi Capital plc
financial assets, capital investments
including Group's associated companies and all deposits by subsidiaries with a
maturity exceeding three
months, classified as investment assets. The result of investment activities
before tax was EUR -1.4 million
(EUR 0.6 million in 2010).
Changes in tangible non-current assets
EUR million 1 - 6 1 - 6 1 - 12
2011 2010 2010
Book value at the beginning of the period 34.5 31.1 31.1
Additions 1.2 1.4 7.3
Deductions -0.2 -0.0 -0.1
Depreciations -2.2 -2.0 -4.5
Exchange rate differences -0.5 0.8 0.7
Book value at the end of the period 32.8 31.3 34.5
Contingent liabilities
EUR million 1 - 6 1 - 6 1 - 12
2011 2010 2010
Given real estate mortgages 3.4 3.4 3.4
Given business mortgages 46.8 6.8 46.8
Pledged guarantees 1.0 0.1 0.1
Rental liabilities 0 0.2 0.1
In addition to the business mortgages of its subsidiary Scanfil EMS Oy, Sievi
Capital plc has given an absolute
guarantee for the payment of Scanfil EMS Oy's EUR 40 million loan and the
resulting liabilities.
Sievi Capital plc has arranged a EUR 4.5 million bank guarantee to secure the
payment of contributions related
to restructuring of Scanfil NV. Balance sheet of Scanfil NV includes
corresponding provision.
Related party transactions
A loan of EUR 300.000 has been issued to Greenpoint Oy, of which EUR 200.000 has
been withdrawn
last year and the rest EUR 100.000 has been withdrawn on February 2011.
The loan will mature on 30 June 2012 and its interest rate is the six-month
Euribor + 2,5 %.
Scanfil EMS Group's invoicing to Greenpoint Oy amounted to EUR 39,579 and
interest income EUR 5,203.
An absolute guarantee in the amount of EUR 150,000 was given to the associated
company IonPhasE Oy
as security for its bank guarantee overdraft facility.
A subordinated loan of EUR 500,000 was granted to the associated company
IonPhasE Oy in May 2011,
with the due date being 31 December 2012 and the interest rate 5%. The holder of
the convertible bond is
authorised to subscribe for new shares in the company by exercising the unpaid
principal of the subordinated
loan as consideration for the subscription price. The interest income from
January to June amounted to EUR 2,549.
The members of the Board of Directors and the president of Sievi Capital plc are
members of the boards of
directors of the associated companies as follows:
Jorma J. Takanen, iLOQ Oy's and IonPhasE Oy's member of the board
Asa-Matti Lyytinen, Kitron ASA's and Panphonics Oy's chairman of the board
Reijo Pöllä, Greenpoint Oy's member of the board
Harri Takanen, Kitron ASA's member of the board
In addition, Jorma J. Takanen is a member of the board of Lännen Tehtaat Oyj.
The company owns 8.6 %
of the shares of Lännen Tehtaat Oyj.
Key indicators quarterly
EUR million
Q2/11 Q1/11 Q4/10 Q3/10 Q2/10 Q1/10 Q4/09 Q3/09
Turnover 62.0 58.8 62.2 62.5 53.9 40.8 48.1 49.6
Operating profit 4.2 3.7 3.2 3.5 6.2 1.5 2.6 4.2
Operating profit, % 6.8 6.2 5.1 5.6 11.6 3.6 5.3 8.5
Net income 2.8 2.1 1.6 3.2 3.9 2.0 2.7 3.8
EPS, EUR 0.05 0.04 0.03 0.06 0.07 0.03 0.05 0.06
SIEVI CAPITAL PLC
Harri Takanen
President
Additional information:
President Harri Takanen
Tel +358 8 4882 111
Distribution NASDAQ OMX, Helsinki
Major Media
www.sievicapital.com
Sievi Capital Group comprises the investment and parent company Sievi Capital
plc, and a subgroup called Scanfil EMS Oy, which is engaged in contract
manufacturing for international telecommunications technology and professional
electronics manufacturers. The objective of the investment activities is to
make the management of the company's funds more effective and productive by
diversifying the risks and finding new growth potential.
Scanfil EMS Oy has 35 years of experience in demanding contract manufacturing.
Scanfil is a systems supplier that offers its products and services to
international telecommunications systems manufacturers and professional
electronics customers. Typical products are equipment systems for mobile and
public switched telephone networks, automation systems, frequency converters,
lift control systems, equipment and systems for electricity production and
transmission, analysers, slot machines and different meteorological
instruments. The company has production facilities in China, Estonia, Hungary
and Finland.
The associated companies of Sievi Capital Group:
Kitron ASA (KIT) (Sievi Capital plc's share of ownership 32,96%) is a listed
Norwegian subcontractor, which operates in five different customer segments:
the marine and oil industry, basic industry, defence equipment industry,
hospital and healthcare equipment industry and data and telecommunications
industry. In addition to Norway, Kitron ASA has plants and production in
Sweden, Lithuania, Germany, China and, as of the beginning of 2011, also in the
United States. Kitron ASA's turnover in 2009 was NOK 1,643.9 million (about EUR
210.5 million). www.kitron.com
Greenpoint Oy (Scanfil EMS Oy's share of ownership 40%) focuses on development
and supply of solutions and equipment, which improve placements, visibility and
sales of customer products in the Point-Of-Sale. The Greenpoint product
portfolio includes a large variety of refrigerated merchandisers, displays and
integrated check-out zone concepts. The company serves both brand owners and
retail chains internationally. Along with the European markets Greenpoint Oy
has entered North and Latin American markets through partnerships.
www.greenpoint.fi
iLOQ Ltd (Sievi Capital plc's share of ownership 23%) develops, manufactures
and markets innovative, high security, electronic and battery-free locking
solutions that combine modern mechatronics with communications and software
technology. The functionality of the iLOQ S10 product concept developed by iLOQ
Ltd and the added customer value it generates has been shown to be good by
achieving significant growth and customer accounts in the Finnish lock market.
The company has built a Finnish distributor network that covers growth centers
and major cities. www.iloq.fi
IonPhasE Oy (Sievi Capital plc's share of ownership 40%) develops and
manufactures high performance dissipative polymers that help to control static
electricity. IonPhasE products are utilized in wide range of industries like
chemical, automotive, telecommunication and consumer electronics. Based on
own-patented technology, IonPhasE manufactures polymers called IonPhasE IPE.
www.ionphase.fi
Panphonics Oy (Sievi Capital plc's share of ownership 40%) is the world's
leading provider of directional audio solutions. Panphonics manufactures
directional audio solutions for acoustically demanding applications based on
it's own patented technology. Panphonics Sound Shower directional audio
speakers can be found in banks, retail stores, digital signage projects,
information kiosks, theatres, and offices throughout the world. Panphonics is
also component manufacturer and licensor of plane wave technology for
industrial audio manufacturers and audio solution providers. www.panphonics.com
Not for release over US newswire services. Forward looking statements: certain
statements in this stock exchange release may constitute "forward-looking"
statements which involve known and unknown risks, uncertainties and other
factors which may cause actual results, performance or achievements of Sievi
Capital plc to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. When used
in this stock exchange release, such statements use such words as "may,""will,""expect,""anticipate,""project,""believe,""plan" and other similar
terminology. New risk factors may arise from time to time and it is not
possible for management to predict all of those risk factors or the extent to
which any factor or combination of factors may cause actual results,
performance and achievements of Sievi Capital plc to be materially different
from those contained in forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on forward-looking
statements as a prediction of actual results. The forward-looking information
contained in this stock exchange release is current only as of the date of this
stock exchange release. There should not be an expectation that such
information will in all circumstances be updated, supplemented or revised,
except as provided by the law or obligatory regulations, whether as a result of
new information, changing circumstances, future events or otherwise.
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