2017-08-17 10:36:18 CEST
2017-08-17 10:36:18 CEST
REGLAMENTUOJAMA INFORMACIJA
Robit Oyj - Half Year financial report
ROBIT PLC INTERIM REPORT JANUARY 1 - JUNE 30, 2017: ROBIT PLC'S GROWTH CONTINUED - COMPANY DOUBLED ITS NET SALES
ROBIT PLC STOCK EXCHANGE RELEASE 17 AUGUST 2017 AT 11.00 A.M.
ROBIT PLC INTERIM REPORT JANUARY 1 - JUNE 30, 2017: ROBIT PLC'S GROWTH CONTINUED
- COMPANY DOUBLED ITS NET SALES
Robit Plc's Interim Report January 1 - June 30, 2017 (unaudited)
In text H1 refers to period January 1 - June 30, 2017 and H2 to period July 1
-December 31, 2017.
During the reporting period, Robit Plc started to apply IFRS standards. The IFRS
conversion accounts were published on May 12, 2017 and comparative figures have
also been amended accordingly.
January 1 - June 30, 2017 in brief
* Robit listed on Nasdaq Helsinki main list. The total proceeds of the share
issue were EUR 49.5 million.
* Robit expanded its offering by acquiring assets and inventories from Halco
USA January and 51 percent of shareholding of Halco UK companies in
February.
* H1 net sales were EUR 42.6 million (H1/2016: 21.1), change +102 percent.
* H1 adjusted EBITDA was EUR 2.9 million (H1/2016: 2.2), +33 percent. The
comparability was influenced by one-time costs relating to listing and share
issue totaling EUR 1.3 million and the expenses relating to acquisitions
totaling EUR 0.3 million. In addition to the above-mentioned costs, the
result of the first half-year was pressed by the integration of new units,
global implementation of the ERP system and intense personnel investments to
ensure the company's planned growth. The combined effect of these items was
approximately EUR 1.7 million. In addition, the gross margin was pressed by
foreign exchange losses of EUR 1.0 million.
* H1 EBITDA amounted to EUR 1.3 million (H1/2016: 2.2), change -40 percent.
* Adjusted EBITA was EUR 0.8 million (H1/2016: 1.5).
* In May 2017, the company's management estimated that the company's
percentage profitability (excluding adjustment items) will remain in 2017 at
the 2016 level if market demand remains at current level and there are no
other disturbances in the market. According to the current view of company's
management, the relative EBITA profitability (excluding comparable items)
will be lower if market demand is maintained at current level and there are
no other disturbances in the market.
* H1 EBIT-% was -3.0 percent of net sales (H1/2016: 7.2).
* H1 profit was EUR -1.9 million (H1/2016: 1.5). Net interest expenses of EUR
0.3 million were interest expenses and EUR 0.5 million in exchange rate
losses.
* Earnings per share for the review period were EUR -0.11 (H1/2016: 0.09).
* The equity ratio at the end of the review period was 56.9 percent (H1/2016:
42.5).
+----------------------------------------+--------+--------+---------+---------+
|Key financials |1-6/2017|1-6/2016|Change, %|1-12/2016|
+----------------------------------------+--------+--------+---------+---------+
|Net sales, EUR 1.000 | 42 645 | 21 076 | 102 % | 64 050 |
+----------------------------------------+--------+--------+---------+---------+
|EBITDA, EUR 1.000 | 1 320 | 2 187 | -40 % | 7 495 |
+----------------------------------------+--------+--------+---------+---------+
|Adjusted EBITDA*, EUR 1.000 | 2 908 | 2 187 | 33% | 10 251 |
+----------------------------------------+--------+--------+---------+---------+
|EBITA, EUR 1.000 | -824 | 1 508 | -155 % | 4 721 |
+----------------------------------------+--------+--------+---------+---------+
|Adjusted EBITA*, EUR 1.000 | 764 | 1 508 | -49 % | 7 468 |
+----------------------------------------+--------+--------+---------+---------+
|Adjusted EBITA, percent of sales | 1,8 % | 7,2 % | -75 % | 11,7 % |
+----------------------------------------+--------+--------+---------+---------+
|EBIT, EUR 1.000 | -1 288 | 1 508 | -185 % | 4 262 |
+----------------------------------------+--------+--------+---------+---------+
|EBIT, percent of sales | -3,0 % | 7,2 % | -142 % | 6,7 % |
+----------------------------------------+--------+--------+---------+---------+
|Net income for the review period, EUR | -1 898 | 1 482 | -228 % | 4 040 |
|1.000 | | | | |
+----------------------------------------+--------+--------+---------+---------+
*) The items affecting comparability are: share issue expenses EUR 1.3 million,
acquisition-related expenses EUR 0.3 million and acquisition-related
amortizations EUR 0.5 million.
CEO MIKA VIRTANEN'S COMMENTS
The company's review period was in line with the sales target. Net sales over
the comparative period doubled. The company's net sales for organic growth also
developed according to the company's long-term growth target. A significant part
of growth came from Top Hammer products, the strongest growth being in Korea's
Top Hammer products. The company's growth was supported in H1 by the increased
activity of the market, especially for the company in a significant market
segment in the mining industry. Market is picking up and expected to have an
impact on net sales in the second half.
The company's net sales during the review period increased by 102 percent
compared to the comparative period. The profitability of the review period was
pressed by the exceptional costs due to the acquisitions made in 2016-2017 and
the company's listing to Nasdaq Helsinki main list in May 2017. The
profitability was influenced by the upfront investments in human resources and
the integration of new units. The above-mentioned exchange rate performance also
had a significant impact to profitability during the review period.
The implementation of the Robit 3.0 growth strategy is proceeding according to
plan. The capacity of the current Korean plant has been fully utilized. As a
result, the company made the largest production investment decision in its
history in March 2017 to build a new, state-of-art, automated plant in Korea.
The new Korean factory will be operational at the end of 2017, which will
support the company's delivery capability and volume growth. This and other
acquired units will provide a positive outlook for the future, especially when
the market appears to be recovering after several years.
A Halco acquisition took place to support the growth strategy. Its business will
be developed as an independent brand. The Halco business will benefit from the
Group's sourcing, manufacturing and product development expertise.
Investments in human resources during the review period are supporting company's
already extensive expertise, which together will contribute to the
implementation of the growth strategy.
MARKET REVIEW
The market seems to recover after several years, especially in the investment
goods. The increased market activity is especially visible in the mining
industry, which is a significant market segment for the company. This will also
have a positive effect on the demand for the consumables. Based on the company's
view and based on past experience, H2/2017 is expected to be better than the
review period.
Further, the company's previous investments in its own sales network and
expansion of the supply will improve the company's operational performance and
customer service. The company continued to pursue its strategy and established a
subsidiary in Kazakhstan to serve customers in the region.
With the above-mentioned Halco acquisition, company's position strengthened
further. This supports a global growth strategy especially in the United States
and England. Robit supplemented significantly its offering in Down the Hole
business already in previous year due to two acquisitions (DTA and Bulroc).
Acquisitions strengthened company significantly in the consumable business,
which the company has focused on in its strategy.
The share of Asia and Australia in company's net sales grew significantly
compared to the comparative period. The company's management sees this market as
a significant growth potential in the future.
In line with its strategy, the company targets further organic growth in all
market areas. The company's systematically built own sales, service and
distribution network will continue to serve as a global platform for increasing
the company's sales.
OFFERING DEVELOPMENT
For the Top Hammer product line, growth is still sought by providing customers
with one-stop shopping. The significance of the South Korean factory was high
and the volume of shanks and rods produced there developed considerably. To
support growth, it was decided on a new state-of-art factory investment in
Korea. The factory investment is planned to be operational by the end of the
year.
The Top Hammer business volume was EUR 16.1 million (EUR 14.6 million in the
comparison period H1/2016).
Down the Hole products of the acquired companies represented a significant part
of the DTH SBU sales. The company's competitiveness is expected to strengthen,
and simultaneously the customer-specific delivery size will increase. The DTH
business volume was EUR 26.5 million (H1/2016: 6.4). The DTH business is a
significant part of the company's net sales.
The Digital Services business area made its first customer deliveries during the
review period. As a result of multi-year product development, Sense Systems has
formed the core of the business area. During the review period, several long-
term tests were carried out with end-customers in different drilling
environments. Currently, the focus is on deliveries and testing of reference
sites.
Technology and related service have gained great interest in the market. The
first orders for M-Sense and S-Sense were received during the review period.
NET SALES AND FINANCIAL PERFORMANCE
+------------------------------------+-------+--------+--------+------+--------+
| |H1/2017|H1/2016 |Change %| 2016 |Change %|
+------------------------------------+-------+--------+--------+------+--------+
|Net Sales, EUR 1.000 | 42 645| 21 076| 102,3 %|64 050| 40,5 %|
+------------------------------------+-------+--------+--------+------+--------+
|Net Sales growth, percent |102,3 %| | |40,5 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Gross profit | 14 987| 7 747| 93,5 %|25 152| 71,3 %|
+------------------------------------+-------+--------+--------+------+--------+
|Gross margin, percent of sales | 35,1 %| 36,8 %| -4,4 %|39,3 %| |
+------------------------------------+-------+--------+--------+------+--------+
|EBITDA, EUR 1.000 | 1 320| 2 187| -39,6 %| 7 495| 92,0 %|
+------------------------------------+-------+--------+--------+------+--------+
|EBITDA, percent of sales | 3,1 %| 10,4 %| -70,2 %|11,7 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Adjusted EBITDA | 2 908| 2 187| 33,0 %|10 251| |
+------------------------------------+-------+--------+--------+------+--------+
|Adjusted EBITDA, percent of sales | 6,8 %| 10,4 %| -34,3 %|16,0 %| |
+------------------------------------+-------+--------+--------+------+--------+
|EBITA, EUR 1.000 | -824| 1 508|-154,6 %| 4 721| 71,2 %|
+------------------------------------+-------+--------+--------+------+--------+
|EBITA, percent of sales | -1,9 %| 7,2 %|-127,0 %| 7,4 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Adjusted EBITA | 764| 1 508| -49,3 %| 7 468| |
+------------------------------------+-------+--------+--------+------+--------+
|Adjusted EBITA, percent of sales | 1,8 %| 7,2 %| -75,0 %|11,7 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Operating profit, EUR 1.000 | -1 288| 1 508|-185,4 %| 4 262| 54,5 %|
+------------------------------------+-------+--------+--------+------+--------+
|Operating profit, percent of sales | -3,0 %| 7,2 %|-142,2 %| 6,7 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Result for the fiscal period | -1 898| 1 482|-228,1 %| 4 040| 123,9 %|
+------------------------------------+-------+--------+--------+------+--------+
|Result for the fiscal period, | | | | | |
|percent of sales | -4,5 %| 7,0 %|-163,3 %| 6,3 %| |
+------------------------------------+-------+--------+--------+------+--------+
|EPS, adjusted for share split | -0,11| 0,09|-222,2 %| 0,26| 100,0 %|
+------------------------------------+-------+--------+--------+------+--------+
|Return on equity, percent | -2,6 %| 3,0 %|-186,9 %| 9,9 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Return on capital employed (ROCE), | | | | | |
|percent | -0,3 %| 9,3 %|-103,1 %| 5,5 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Adjusted ROCE percent | 1,1 %| 9,3 %| -88,7 %| 7,8 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Net interest-bearing debt, EUR 1.000| -3 922| 11 042|-135,5 %|36 910|-269,1 %|
+------------------------------------+-------+--------+--------+------+--------+
|Equity ratio, percent | 56,9 %| 42,5 %| 33,8 %|43,9 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Gearing, percent | -4,1 %| 23,3 %|-117,6 %|73,7 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Gross investments, EUR 1.000 | 5 856| 33 272| -82,4 %|58 027|1378,0 %|
+------------------------------------+-------+--------+--------+------+--------+
|Gross investments, percent of sales |13,73 %|157,87 %| -91,3 %|90,6 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Gross investments, excl. | | | | | |
|acquisition, EUR 1.000 | 3 654| 656| 457,0 %| 2 641| -32,7 %|
+------------------------------------+-------+--------+--------+------+--------+
|R&D costs, EUR 1.000 | 772| 444| 18,2 %| 1 505| 33,6 %|
+------------------------------------+-------+--------+--------+------+--------+
|R&D costs, percentage of sales | 1,8 %| 2,1 %| -41,6 %| 2,3 %| |
+------------------------------------+-------+--------+--------+------+--------+
|Average number of employees | 294| 139| 127,9 %| 199| 60,1 %|
+------------------------------------+-------+--------+--------+------+--------+
|Number of employees at the end of | | | | | |
|period | 325| 214| 142,5 %| 263| 96,3 %|
+------------------------------------+-------+--------+--------+------+--------+
*) The items affecting H1 2017 comparability are: share issue expenses EUR 1.3
million, acquisition-related expenses EUR 0.3 million and acquisition-related
amortizations EUR 0.5 million. In 2016 the items affecting comparability were:
acquisition-related expenses EUR 2.8 million.
The Group's net sales during the review period were EUR 42.6 million (21.0), an
increase of 102 percent from the comparison period. This growth was especially
due to the consolidation of the acquired business during the previous financial
year, but also to organic growth.
EUR 16.1 million (14.6) of the review period net sales came from the Top Hammer
business and EUR 26.5 million (6.4) from the Down the Hole business. The Digital
Services business did not yet generate significant net sales and focused mainly
on reference deliveries.
Of the Group's net sales, the EMEA accounted for EUR 14.7 million (12.3),
Australia & Asia EUR 18.8 million (4.1), Americas EUR 7.0 million (2.9) and East
EUR 2.2 million (1.8).
The Group's EBIT for the review period was EUR -1.3 million (1.5). The EBIT-%
was -3.0 percent (7.2) of the net sales for the review period. The result of the
business was influenced by the upfront investments in human resources and on the
integration of new units. The above-mentioned exchange rate performance also had
a significant impact on the decline in profitability during the review period.
EBITA was EUR -0.8 million (1.5). Adjusted EBITA was EUR 0.8 million (1.5), thus
1.8 per cent (7.2) of net sales. Items affecting comparability are items
relating to acquisitions and share issue, which are as follows.
When looking at profitability, the following items of income and expense must be
considered:
* amount of listing expenses totaled EUR 2.9 million, of which EUR 1.3 million
were expensed.
* acquisition-related expenses amounted to EUR 0.3 million
* acquisition-related amortizations of EUR 0.5 million
Adjusted EBITDA has thus been adjusted for a total of EUR 1.6 million.
The Group's net financial expenses were EUR 0.8 million (H1/2016: 0.4), of which
interest costs portion was EUR 0.4 million. Result before taxes was EUR -2.1
million (1.9) and taxes EUR 0.2 million (-0.4). The impact of exchange rates on
operational operations was also negative in the review period.
FINANCIAL TARGETS
In line with its strategy, the company will continue strongly as a growth
company. Growth is targeted with an average annual organic growth rate of at
least 15 percent.
During the review period, the company's growth was 102 percent to comparative
period, with growth being in line with expectations, most of which based on new
acquisitions. The company's targets to grow through acquisitions were
implemented in the beginning of the year, when Robit acquired assets,
inventories and IPRs from Halco International LLC and Halco America LLC on
January 12, 2017 as well as a majority of Halco Brighouse Ltd's shares on
February 16, 2017
Company has adopted IFRS in 2017. The relative EBITA profitability (excluding
adjustment items) calculated in accordance with the IFRS financial statements
for 2016 was 11.7%. In May 2017, the company's management estimated that the
company's percentage profitability (excluding adjustment items) will remain in
2017 at the 2016 level if market demand remains at current level and there are
no other disturbances in the market.
According to the current view of company's management, the relative EBITA
profitability (excluding comparable items) will be lower if market demand is
maintained at current level and there are no other disturbances in the market.
The long-term strategic goal is to achieve an EBITA margin of over 13 percent
over the economic cycle.
Post-acquisitions integration projects will further enhance the importance of
optimizing the product range, inventory turnover, lead times and logistics
efficiency. The company will intensify its management of working capital, while
maintaining the good service of customers in the globally chosen market segments
in the future.
FINANCING AND INVESTMENTS
The Group's net cash flow from operating activities for the review period was
EUR 0.1 million
(H1/2016: -0.7). The effect of changes in working capital was EUR -0.2 million
(H1/2016: -2.1).
In the reporting period, the change in working capital during the review period
was mainly due to a growth in receivables of EUR 2.3 million and an increase of
EUR 2.2 million in inventories. The increase in non-interest-bearing liabilities
was EUR 4.3 million. With the development program working capital will decrease
significantly.
Net working capital amounted to EUR 39.3 million (H1/2016: 17.3) at the end of
the review period. Company acquisitions are the main reason for the net working
capital increase.
Net cash flow from investing activities was EUR -5.9 million (H1/2016: -31.6).
Gross investments were EUR 5.9 million (H1/2016: 31.6). Of the investments, EUR
2.1 million related to the Korean new plant's investment and EUR 1.8 million to
Halco assets.
Net cash flow from financing activities EUR 49.8 million (H1/2016: 25.2)
consists of EUR 49.5 million of the share issue and net change in loans.
Liquid assets at the end of the review period totalled EUR 54.7 million
(H1/2016: 26.3) and interest-bearing financial liabilities totalled EUR 51.5
million (H1/2016: 37.3).
The Group's equity at the end of the review period was EUR 95.7 million
(H1/2016: 47.4).
At the end of the review period, the Group's equity ratio was 56.8 per cent
(H1/2016: 42.5) and the net debt to equity ratio was -4.1 percent (H1/2016:
23.3) as a result of the company's good financial position after share issue.
Depreciation was 2.6 (H1/2016: 0.7) million. The growth of depreciation of EUR
1.9 million was mainly due to the increase in the depreciation through the
companies acquired in 2016 and 2017, and EUR 0.5 million to the amortization of
the purchase price allocations of the acquisitions.
FUTURE OUTLOOK
Robit supplemented its offering with the acquisition of Halco. This acquisition
also supports the growth strategy.
The new product offering from this and previous acquisitions combined with the
company's expanded distribution network and a more developed dealer network
enable good growth opportunities in the new group. The professional, efficient
and customer-oriented dealer network is essential for the future organic growth
of the company. According to the management, the above-mentioned factors create
good conditions for strengthening the company's market share and market position
in the future. With the wider delivery range company is able to serve customers
better.
The company continues to evaluate suitable potential acquisition targets as part
of the global consolidation trend in the industry, which the company's
management expects to continue further. The development of the Halco business
also strengthens Robit's growth strategy.
SHARES AND SHARE TURNOVER
The number of shares on June 30, 2017 was 21,083,900 shares.
The number of shareholders on June 30, 2017 was 2,051.
The company holds 94,674 treasury shares (0.5 percent of the number of shares).
The market capitalization on June 30, 2017 was EUR 219 million (share price was
EUR 10.40).
During the review period, the company made a directed share issue to
institutional investors, which were issued 5,000,000 new shares. The issue price
was EUR 9.90 per share and a total of EUR 49.5 million of new capital was
collected.
PERSONNEL AND MANAGEMENT
At the end of the review period, the company's personnel amounted to 325 (144.
The increase in the number of employees was due to the personnel of the
companies acquired during the previous financial year and the period under
review. During the review period, the number of employees grew by 62, two thirds
of which came from acquisitions and one third through additional recruitment. Of
the company's personnel, 73 percent were outside Finland.
Company strengthened its management with the following persons: Group CEO Mika
Virtanen, Group CFO Ilkka Miettinen, VP Down the Hole Tommi Lehtonen, VP East
Jorma Juntunen and VP EMEA Kari Alenius. VP Top Hammer Olli Kuismanen, VP
Americas Mikko Mattila and HR Manager Terhi Mäkinen left the company.
RESOLUTIONS OF GENERAL MEETINGS
Robit Plc's Annual General Meeting on March 28, 2017 approved the presented
financial statements for January 1 - December 31, 2016 and decided that a
dividend of EUR 1 598 922.60 to be paid. It was resolved to discharge the
members of the Board of Directors from liability for the financial period of
2016 and the CEO for the financial period of 2016.
The following persons were elected as the Board of Directors: Mammu Kaario as a
new member and Tapio Hintikka, Matti Kotola, Kalle Reponen and Harri Sjöholm as
old members. Anni Ronkainen was no longer available for re-election to the Board
of Directors. It was resolved to elect Harri Sjöholm as Chairman of the Board of
Directors.
Ernst & Young Oy, an Authorized Public Accounting firm, was elected as the
company's auditor and Authorized Public Accountant Mikko Järventausta as the
auditor-in-charge.
Robit Plc's Extraordinary General Meeting held on 20 April 2017 made the
following key resolutions:
The Extraordinary General Meeting resolved to authorise the Board of Directors
to decide on the acquisition of a maximum of 1,608,390 own shares, in one or
several tranches, using the Company's unrestricted shareholder's equity. The
maximum number of shares to be acquired equals to approximately 10% of all
shares in the Company at the date of the notice to the EGM. However, the
Company, together with its subsidiary companies, may not at any point own more
than 10% of all the shares in the Company. Own shares may be purchased under the
authorisation using only the unrestricted shareholders' equity.
The shares are acquired otherwise than in proportion to the share ownership of
the shareholders in public trading arranged by Nasdaq Helsinki Ltd at the market
price on the date of the acquisition or otherwise at a price formed on the
market. The Company's own shares may be acquired, for instance, to carry out
possible corporate transactions or as part of share-based incentive systems, or
for other purposes as decided by the Board of Directors, as well as otherwise
for further transfer, retention or cancellation. The Board of Directors is
authorised to decide on all other terms and conditions regarding the acquisition
of the Company's own shares.
The Extraordinary General Meeting resolved that this authorisation cancels the
authorisation granted by the Annual General Meeting on 18 March 2016 to decide
on the acquisition of own shares.
The authorisation is in force until the end of the following Annual General
Meeting, however not longer than until 30 June 2018.
The Board of Directors resolved to authorise the Board of Directors to decide on
the issuance of shares and special rights entitling to shares referred to in
chapter 10, section 1 of the Limited Liability Companies Act, in one or more
tranches, either against or without consideration.
The number of shares to be issued, including the shares to be issued on the
basis of special rights, may not exceed 7,000,000, which equals to approximately
43.5% of all the shares in the Company at the date of the notice to the EGM. The
Board of Directors may decide to issue either new shares or to transfer any own
shares held by the Company.
The authorisation entitles the Board of Directors to decide on all terms of the
share issue and transfer of special rights entitling to shares, including the
right to deviate from the shareholders' pre-emptive right. The authorisation may
be used to finance the Company's growth, as consideration in corporate
transactions, as part of the Company's incentive systems, or for other purposes
as decided by the Board of Directors.
The authorisation remains in force for five years from the end of the
Extraordinary General Meeting. This authorisation cancels any previous unused
authorisations to decide on the share issue and issuance of options or other
special rights entitling to shares.
CHANGES IN GROUP STRUCTURE
During the review period, the company acquired 51 percent of Halco UK's
shareholding (Halco Brighouse Ltd, Halco Drilling Tools Ltd). A new subsidiary,
Robit LLC, was established in the USA, which acquired Halco USA's assets. In
addition, the company established a new subsidiary in Kazakhstan (TOO Robit).
RISKS AND BUSINESS UNCERTAINTIES
The company's risks and uncertainties are related to the company's operating
environment, its possible changes and global economic development.
In addition, uncertainty factors include exchange rate developments, the
functioning and introduction of new information systems, the integration of
acquisitions, security of supply and logistics risks, IPR risks and
uncertainties associated with the company's operations. In addition, changes in
tax and customs legislation in the export countries may harm the export trade or
profitability of the company.
The possible realization of the risks is expected to have a negative impact
mainly on the company's growth, financial position and profitability as well as
the image. The company's management does not expect these risks and
uncertainties to be significant at the time of the review.
OTHER EVENTS DURING THE REVIEW PERIOD
Mika Virtanen, M.Sc. Economics and Production Technologies, (42), was appointed
the new Group CEO of Robit Plc in May 1, 2017. Virtanen has made a career of
over 20 years in several management positions in metal and automation industry.
He worked since 2002 for Cargotec Corporation in international operations before
joining Robit.
Company listed on Nasdaq Helsinki main list on May 17, 2017.
The listing enabled a new share issue for institutional investors. The gross
proceeds from the issue totaled EUR 49.5 million to finance growth.
EVENTS AFTER THE REVIEW PERIOD
Robit has recruited Jukka Pihamaa, M.Sc, Engineering, MBA, as the VP Supply
Chain and Mikko Vuojolainen, M.Sc, Engineering, MBA as the VP Americas. Both
will begin their duties later in the autumn at a time to be announced
separately.
FINANCIAL INFORMATION EVENTS
An analyst and press conference in connection with the publication of the half-
year financial report will be held for analysts, investors and media
representatives on Thursday, 17 August 2017 at 1.00 p.m. The conference will
take place in Helsinki at Event Arena Bank (meeting rooms 24-25), Unioninkatu
22, 00130 Helsinki. Entrance through Havis Business Center.
Doors will be open at 12.30 p.m. The conference will be held in English.
The event is open for everybody. However, it is advisable to register to the
event by Thursday 10 August 2017 via email investors@robitgroup.com.
The conference can also be viewed as a live webcast at
http://live.mentoraid.fi/9uer5t/. Registration is not required.
The presentation material and record will be available on the company's website
at http://www.robit.fi/investors/financial-information/ after the analyst and
press conference.
FINANCIAL INFORMATION AND REPORTING SCHEDULE IN 2017
The company will present its net sales figures from the time period January
1, 2017 - September 30, 2017 on October 19, 2017.
ACCOUNTING POLICIES
This release has been prepared in accordance with the International Accounting
Standards (IFRS) recognition and measurement principles. All figures in the
statement of financial statements and notes are rounded, which means that the
aggregate amount of the individual figures may differ from the amount presented.
Robit has made a preliminary assessment of the application of IFRS 15 and no
significant change is expected in the valuation or timing of the sales net
sales. The application of IFRS 15 will be launched in the Group during the rest
of 2017.
Lempäälä, August 17, 2017
Robit Plc
Group CEO Mika Virtanen
Board of Directors
Summary of Financial Statements
+----------------------+------------------+-----------------+------------------+
|Consolidated statement| | | |
|of comprehensive| | | |
|income | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|EUR thousand | | | |
+----------------------+------------------+-----------------+------------------+
| | 1.1.2017 -| 1.1.2016 -| 1.1.2016 -|
| | 30.6.2017| 30.6.2016| 31.12.2016|
+----------------------+------------------+-----------------+------------------+
|Revenue | 42 645| 21 076| 64 050|
+----------------------+------------------+-----------------+------------------+
|Changes in inventories| -1 060| 1 343| -67|
|of finished goods and| | | |
|work in progress | | | |
+----------------------+------------------+-----------------+------------------+
|Manufacturing for own| 147| 98| 201|
|use | | | |
+----------------------+------------------+-----------------+------------------+
|Other operating income| 110| 100| 241|
+----------------------+------------------+-----------------+------------------+
|Materials and services| | | |
+----------------------+------------------+-----------------+------------------+
|Purchases during the| -16 610 | -7 288| -20 290 |
|year | | | |
+----------------------+------------------+-----------------+------------------+
|Change in inventories,| 927 | 292| -634 |
|increase (+) decrease| | | |
|(-) | | | |
+----------------------+------------------+-----------------+------------------+
|External services | -6 760 | -5 828| -11 727 |
+----------------------+------------------+-----------------+------------------+
|Materials and supplies| -22 443| -12 823| -32 651|
+----------------------+------------------+-----------------+------------------+
|Employee benefit| -9 059| -3 758| -11 113|
|expense | | | |
+----------------------+------------------+-----------------+------------------+
|Depreciation, | -2 608| -679| -3 233|
|amortization and| | | |
|impairment | | | |
+----------------------+------------------+-----------------+------------------+
|Other operating| -9 019| -3 849| -13 167|
|expenses | | | |
+----------------------+------------------+-----------------+------------------+
|Operating profit| -1 288| 1 508| 4 262|
|(loss) | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Financial income and| | | |
|costs | | | |
+----------------------+------------------+-----------------+------------------+
|Interest income and| 639| 2 008| 3 316|
|other finance income | | | |
+----------------------+------------------+-----------------+------------------+
|Interest expense and| -1 475| -1 639| -2 411|
|other financial cost | | | |
+----------------------+------------------+-----------------+------------------+
|Financial income and| -836| 369| 906|
|costs total | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Profit (loss) before| -2 124| 1 877| 5 168|
|income tax | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Income taxes | | | |
+----------------------+------------------+-----------------+------------------+
|Current tax | -210| -245| -1 100|
+----------------------+------------------+-----------------+------------------+
|Changes in deferred| 435| -150| -28|
|taxes | | | |
+----------------------+------------------+-----------------+------------------+
|Income taxes | 226| -395| -1 128|
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Profit (loss) for the| -1 898| 1 482| 4 040|
|period | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Attributable to: | | | |
+----------------------+------------------+-----------------+------------------+
|Owners of the parent | -1 898| 1 482| 4 040|
+----------------------+------------------+-----------------+------------------+
| | -1 898| 1 482| 4 040|
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Other comprehensive| | | |
|income | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Items that may be| | | |
|reclassified to profit| | | |
|or loss in subsequent| | | |
|periods: | | | |
+----------------------+------------------+-----------------+------------------+
|Translation | -986| 19| 43|
|differences | | | |
+----------------------+------------------+-----------------+------------------+
|Other comprehensive| | | |
|income, net of tax | -986| 19| 43|
+----------------------+------------------+-----------------+------------------+
|Total comprehensive| -2 884| 1 502| 4 083|
|income | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Attributable to: | | | |
+----------------------+------------------+-----------------+------------------+
|Owners of the parent | -2 884| 1 502| 4 083|
+----------------------+------------------+-----------------+------------------+
|Total comprehensive| -2 884| 1 502| 4 083|
|income | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Earnings per share| | | |
|attributable to the| | | |
|owners of the parent| | | |
|during the year | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Basic and diluted| -0,11| 0,09| 0,26|
|earnings per share | | | |
+----------------------+------------------+-----------------+------------------+
+--------------------------------------+---------+---------+----------+--------+
|CONSOLIDATED BALANCE SHEET | | | | |
+--------------------------------------+---------+---------+----------+--------+
|EUR tuhatta |30.6.2017|30.6.2016|31.12.2016|1.1.2016|
+--------------------------------------+---------+---------+----------+--------+
|ASSETS | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Non-current assets | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Goodwill | 25 573| 19 501| 25 469| 88|
+--------------------------------------+---------+---------+----------+--------+
|Other intangible assets | 8 314| 6 836| 8 333| 1 297|
+--------------------------------------+---------+---------+----------+--------+
|Property, plant and equipment | 20 901| 14 991| 16 611| 7 752|
+--------------------------------------+---------+---------+----------+--------+
|Loan receivables | 376| 742| 720| 744|
+--------------------------------------+---------+---------+----------+--------+
|Other receivables | 153| 156| 157| 150|
+--------------------------------------+---------+---------+----------+--------+
|Deferred tax assets | 1 078| 691| 720| 339|
+--------------------------------------+---------+---------+----------+--------+
|Total non-current assets | 56 395| 42 917| 52 011| 10 369|
+--------------------------------------+---------+---------+----------+--------+
| | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Current assets | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Inventories | 32 726| 27 363| 30 176| 11 873|
+--------------------------------------+---------+---------+----------+--------+
|Account and other receivables | 24 338| 14 292| 21 248| 10 431|
+--------------------------------------+---------+---------+----------+--------+
|Loan receivables | 31| 65| 48| 26|
+--------------------------------------+---------+---------+----------+--------+
|Income tax receivable | 27| 204| 0| 10|
+--------------------------------------+---------+---------+----------+--------+
|Derivatives | 0| 449| | |
+--------------------------------------+---------+---------+----------+--------+
|Cash and cash equivalents | 54 698| 26 280| 10 519| 33 310|
+--------------------------------------+---------+---------+----------+--------+
|Total current assets | 111 819| 68 654| 61 991| 55 650|
+--------------------------------------+---------+---------+----------+--------+
| | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Total assets | 168 214| 111 570| 114 002| 66 019|
+--------------------------------------+---------+---------+----------+--------+
| | | | | |
+--------------------------------------+---------+---------+----------+--------+
| | | | | |
+--------------------------------------+---------+---------+----------+--------+
|EUR thousand |30.6.2017|30.6.2016|31.12.2016|1.1.2016|
+--------------------------------------+---------+---------+----------+--------+
|EQUITY AND LIABILITIES | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Equity | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Share capital | 705| 705| 705| 705|
+--------------------------------------+---------+---------+----------+--------+
|Share premium | 202| 202| 202| 202|
+--------------------------------------+---------+---------+----------+--------+
|Reserve for invested unrestricted| 82 436| 32 322| 32 368| 32 322|
|equity | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Cumulative translation difference | -842| 120| 144| 101|
+--------------------------------------+---------+---------+----------+--------+
|Retained earnings | 15 059| 12 598| 12 597| 11 526|
+--------------------------------------+---------+---------+----------+--------+
|Profit (loss) for the period | -1 898| 1 482| 4 040| 1 704|
+--------------------------------------+---------+---------+----------+--------+
|Total equity attributable to owners of| 95 661| 47 429| 50 056| 46 559|
|the parent | | | | |
+--------------------------------------+---------+---------+----------+--------+
| | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Total Equity | 95 661| 47 429| 50 056| 46 559|
+--------------------------------------+---------+---------+----------+--------+
| | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Liabilities | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Non-current liabilities | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Borrowings | 42 340| 32 502| 36 601| 5 262|
+--------------------------------------+---------+---------+----------+--------+
|Deferred tax liabilities | 1 938| 1 583| 2 093| - |
+--------------------------------------+---------+---------+----------+--------+
|Derivative financial instruments | 0| 30| 0| 49|
+--------------------------------------+---------+---------+----------+--------+
|Employee benefit obligations | 1 178| 891| 947| 430|
+--------------------------------------+---------+---------+----------+--------+
|Total non-current liabilities | 45 456| 35 005| 39 641| 5 741|
+--------------------------------------+---------+---------+----------+--------+
| | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Current liabilities | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Borrowings | 9 122| 4 820| 10 828| 6 224|
+--------------------------------------+---------+---------+----------+--------+
|Derivative financial instruments | 0| 0| 38| 0 |
+--------------------------------------+---------+---------+----------+--------+
|Advances received | 330| 269| 282| 132|
+--------------------------------------+---------+---------+----------+--------+
|Income tax liabilities | 195| 16| 736| 103|
+--------------------------------------+---------+---------+----------+--------+
|Account payables and other current| 17 449| 24 032| 12 421| 7 260|
|liabilities | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Total current liabilities | 27 096| 29 136| 24 305| 13 720|
+--------------------------------------+---------+---------+----------+--------+
| | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Total liabilities | 72 553| 64 141| 63 946| 19 460|
+--------------------------------------+---------+---------+----------+--------+
| | | | | |
+--------------------------------------+---------+---------+----------+--------+
|Total equity and liabilities | 168 214| 111 570| 114 002| 66 019|
+--------------------------------------+---------+---------+----------+--------+
+------------------------------------------------------------------------------+
|CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
+---------------+---------+--------+-------------+------------+---------+------+
|EUR thousand |Share |Share |Reserve for |Cumulative |Retained |Total |
| |capital |premium |invested |translation |earnings | |
| | | |unrestricted |difference | | |
| | | |equity | | | |
+---------------+---------+--------+-------------+------------+---------+------+
|Equity at | | | | | | |
|1.1.2016 | 705| 202| 32 322| 101| 13 229|46 559|
+---------------+---------+--------+-------------+------------+---------+------+
|Profit for the | | | | | | |
|period | - | - | - | - | 1 482| 1 482|
+---------------+---------+--------+-------------+------------+---------+------+
|Other | | | | | | |
|comprehensive | | | | | | |
|income | | | | | | |
+---------------+---------+--------+-------------+------------+---------+------+
|Translation | | | | | | |
|differences | - | - | - | 19| - | 19|
+---------------+---------+--------+-------------+------------+---------+------+
|Total | | | | | | |
|comprehensive | | | | | | |
|income or | | | | | | |
|expense | - | - | - | 19| 1 482| 1 501|
+---------------+---------+--------+-------------+------------+---------+------+
| | | | | | | |
+---------------+---------+--------+-------------+------------+---------+------+
|Dividend | | | | | | |
|distribution | - | - | - | - | -631| -631|
+---------------+---------+--------+-------------+------------+---------+------+
|Total | | | | | | |
|transactions | | | | | | |
|with owners, | | | | | | |
|recognized | | | | | | |
|directly in | | | | | | |
|equity | - | - | - | - | -631| -631|
+---------------+---------+--------+-------------+------------+---------+------+
| | | | | | | |
+---------------+---------+--------+-------------+------------+---------+------+
|Equity at | | | | | | |
|30.6.2016 | 705| 202| 32 322| 120| 14 080|47 429|
+---------------+---------+--------+-------------+------------+---------+------+
| | | | | | | |
+---------------+---------+--------+-------------+------------+---------+------+
|Equity at | | | | | | |
|1.1.2017 | 705| 202| 32 368| 144| 16 638|50 057|
+---------------+---------+--------+-------------+------------+---------+------+
|Profit for the | | | | | | |
|period | | | | | -1 898|-1 898|
+---------------+---------+--------+-------------+------------+---------+------+
|Other | | | | | | |
|comprehensive | | | | | | |
|income | | | | | | |
+---------------+---------+--------+-------------+------------+---------+------+
|Translation | | | | | | |
|differences | | | | -986| | -986|
+---------------+---------+--------+-------------+------------+---------+------+
|Total | | | | | | |
|comprehensive | | | | | | |
|income | - | - | 0| -986| -1 898|-2 884|
+---------------+---------+--------+-------------+------------+---------+------+
| | | | | | | |
+---------------+---------+--------+-------------+------------+---------+------+
|Dividend | | | | | | |
|distribution | | | | | -1 579|-1 579|
+---------------+---------+--------+-------------+------------+---------+------+
|Halco | | | | | | |
|acquisition | | | 1 797| | | 1 797|
+---------------+---------+--------+-------------+------------+---------+------+
|Share issue | - | - | 48 270| - | - |48 270|
+---------------+---------+--------+-------------+------------+---------+------+
|Total | | | | | | |
|transactions | | | | | | |
|with owners, | | | | | | |
|recognized | | | | | | |
|directly in | | | | | | |
|equity | 0| 0| 50 067| 0| -1 579|48 488|
+---------------+---------+--------+-------------+------------+---------+------+
| | | | | | | |
+---------------+---------+--------+-------------+------------+---------+------+
|Equity at | | | | | | |
|30.6.2017 | 705| 202| 82 435| -842| 13 161|95 661|
+---------------+---------+--------+-------------+------------+---------+------+
+-----------------------------------------+-----------------+------------------+
|CONSOLIDATED STATEMENT OF CASH FLOWS | | |
+----------------------+------------------+-----------------+------------------+
|EUR thousand | 1.1.2017 -| 1.1.2016 -| 1.1.2016 -|
| | 30.6.2017| 30.6.2016| 31.12.2016|
+----------------------+------------------+-----------------+------------------+
|Cash flows from | | | |
|operating activities | | | |
+----------------------+------------------+-----------------+------------------+
|Profit before income | -2 124| 1 877| 5 168|
|tax | | | |
+----------------------+------------------+-----------------+------------------+
|Adjustments | | | |
+----------------------+------------------+-----------------+------------------+
|Depreciation, | | | |
|amortization and | 2 608| 679| 3 233|
|impairment charges | | | |
+----------------------+------------------+-----------------+------------------+
|Finance income and | 836| -369| -906|
|finance costs | | | |
+----------------------+------------------+-----------------+------------------+
|loss (+) on sale of | | | |
|property, plant and | 0| 0| 135|
|equipment | | | |
+----------------------+------------------+-----------------+------------------+
|Other non-cash | 145| 0| 46|
|transactions | | | |
+----------------------+------------------+-----------------+------------------+
|Cash flows before | | | |
|changes in working | 1 465| 2 187| 7 677|
|capital | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Change in working | | | |
|capital | | | |
+----------------------+------------------+-----------------+------------------+
|Increase (-) in | | | |
|account and other | -2 276| -2 133| -8 187|
|receivables | | | |
+----------------------+------------------+-----------------+------------------+
|Increase (-) / | | | |
|decrease (+) in | -2 212| -1 797| -37|
|inventories | | | |
+----------------------+------------------+-----------------+------------------+
|Increase (+) in | | | |
|account and other | 4 333| 1 783| 2 048|
|payables | | | |
+----------------------+------------------+-----------------+------------------+
|Cash flows from | | | |
|operating activities | 1 309| 39| 1 456|
|before financial | | | |
+----------------------+------------------+-----------------+------------------+
|items and taxes | | | |
+----------------------+------------------+-----------------+------------------+
|Interest and other | -557| -252| -737|
|finance expenses paid | | | |
+----------------------+------------------+-----------------+------------------+
|Interest and other | | | |
|finance income | 173| 1| 20|
|received | | | |
+----------------------+------------------+-----------------+------------------+
|Income taxes paid | -849| -524| -521|
+----------------------+------------------+-----------------+------------------+
|Net cash inflow | | | |
|(outflow) from | 76| -736| 264|
|operating activities | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Cash flows from | | | |
|investing activities | | | |
+----------------------+------------------+-----------------+------------------+
|Purchases of property,| -3 253| -294| -1 749|
|plant and equipment | | | |
+----------------------+------------------+-----------------+------------------+
|Purchases of | -761| -341| -892|
|intangible assets | | | |
+----------------------+------------------+-----------------+------------------+
|Proceeds from the sale| | | |
|of property, plant and| 0| 0| 77|
|equipment | | | |
+----------------------+------------------+-----------------+------------------+
|Proceeds from loan | 361| 0| 2|
|receivables | | | |
+----------------------+------------------+-----------------+------------------+
|Loans granted | 0| -37| 0|
+----------------------+------------------+-----------------+------------------+
|Proceeds from currency| 0| 0| 1 156|
|forward contracts | | | |
+----------------------+------------------+-----------------+------------------+
|Acquisition of | | | |
|subsidiaries, net of | -2 202| -30 945| -56 622|
|cash acquired | | | |
+----------------------+------------------+-----------------+------------------+
|Net cash inflow | | | |
|(outflow) from | -5 856| -31 617| -58 027|
|investing activities | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Cash flows from | | | |
|financing activities | | | |
+----------------------+------------------+-----------------+------------------+
|Proceeds from share | | | |
|issues, net of | 47 962| 0| - |
|expenses | | | |
+----------------------+------------------+-----------------+------------------+
|Acquisition of own | | 0| - |
|shares | | | |
+----------------------+------------------+-----------------+------------------+
|Proceeds from non- | 6 000| 27 383| 36 815|
|current loans | | | |
+----------------------+------------------+-----------------+------------------+
|Repayments of non- | -3 532| -1 272| -1 871|
|current loans | | | |
+----------------------+------------------+-----------------+------------------+
|Change in bank | 1 072| -201| 636|
|overdrafts | | | |
+----------------------+------------------+-----------------+------------------+
|Payment of finance | -130| -34| -67|
|lease liabilities | | | |
+----------------------+------------------+-----------------+------------------+
|Distribution of | -1 578| -631| -631|
|dividend | | | |
+----------------------+------------------+-----------------+------------------+
|Net cash inflow | | | |
|(outflow) from | 49 794| 25 245| 34 881|
|financing activities | | | |
+----------------------+------------------+-----------------+------------------+
| | | | |
+----------------------+------------------+-----------------+------------------+
|Net increase (+) / | | | |
|decrease (-) in cash | 44 014| -7 109| -22 862|
|and cash equivalents | | | |
+----------------------+------------------+-----------------+------------------+
|Cash and cash | | | |
|equivalents at the | 10 519| 33 310| 33 310|
|beginning of the | | | |
|financial year | | | |
+----------------------+------------------+-----------------+------------------+
|Exchange gains/losses | | | |
|on cash and cash | 164| 79| 91|
|equivalents | | | |
+----------------------+------------------+-----------------+------------------+
|Cash and cash | | | |
|equivalents at end of | 54 698| 26 280| 10 519|
|the year | | | |
+----------------------+------------------+-----------------+------------------+
+-------------------------------------------------------------+
|Borrowings/Loans/Interest-bearing loans |
+------------------------------+---------+---------+----------+
|EUR thousand |30.6.2017|30.6.2016|31.12.2016|
+------------------------------+---------+---------+----------+
|Non-current borrowings | | | |
+------------------------------+---------+---------+----------+
|Loans from credit institutions| 41 512| 32 365| 35 787|
+------------------------------+---------+---------+----------+
|Other loans | 735| -| 702|
+------------------------------+---------+---------+----------+
|Finance lease liabilities | 93| 137| 113|
+------------------------------+---------+---------+----------+
|Total non-current borrowings | 42 340| 32 502| 36 601|
+------------------------------+---------+---------+----------+
| | | | |
+------------------------------+---------+---------+----------+
|Current borrowings | | | |
+------------------------------+---------+---------+----------+
|Loans from credit institutions| 4 871| 3 047| 8 162|
+------------------------------+---------+---------+----------+
|Bank overdrafts | 3 657| 1 748| 2 585|
+------------------------------+---------+---------+----------+
|Finance lease liabilities | 593| 25| 81|
+------------------------------+---------+---------+----------+
|Total current borrowings | 9 122| 4 820| 10 828|
+------------------------------+---------+---------+----------+
| | | | |
+------------------------------+---------+---------+----------+
|Total borrowings | 51 462| 37 321| 47 429|
+------------------------------+---------+---------+----------+
+------------------------------------------------------------------------------+
|Changes in property, plant and equipment |
+-----------------------------------------------+---------+---------+----------+
|EUR thousand |30.6.2017|30.6.2016|31.12.2016|
+-----------------------------------------------+---------+---------+----------+
| | | | |
+-----------------------------------------------+---------+---------+----------+
|Cost at the beginning of period | 23 797| 12 696| 12 696|
+-----------------------------------------------+---------+---------+----------+
|Additions | 3 054| 294| 1 789|
+-----------------------------------------------+---------+---------+----------+
|Acquisition of subsidiaries | 3 765| 7 496| 9 325|
+-----------------------------------------------+---------+---------+----------+
|Disposals | -316| -9| -235|
+-----------------------------------------------+---------+---------+----------+
|Exchange differences | -610| 49| 222|
+-----------------------------------------------+---------+---------+----------+
|Cost at the end of period | 29 690| 20 526| 23 797|
+-----------------------------------------------+---------+---------+----------+
| | | | |
+-----------------------------------------------+---------+---------+----------+
|Accumulated depreciation and impairment at the | -7 186| -4 944| -4 944|
|beginning of period | | | |
+-----------------------------------------------+---------+---------+----------+
|Depreciation | -1 917| -577| -2 241|
+-----------------------------------------------+---------+---------+----------+
|Disposals | 171| 0| 23|
+-----------------------------------------------+---------+---------+----------+
|Exchange differences | 143| -13| -23|
+-----------------------------------------------+---------+---------+----------+
|Accumulated depreciation and impairment at the | -8 789| -5 534| -7 185|
|end of period | | | |
+-----------------------------------------------+---------+---------+----------+
| | | | |
+-----------------------------------------------+---------+---------+----------+
|Net book amount at the beginning of period | 16 611| 7 752| 7 752|
+-----------------------------------------------+---------+---------+----------+
|Net book amount at the end of period | 20 901| 14 991| 16 611|
+-----------------------------------------------+---------+---------+----------+
Acquisitions
In 2017 Robit has executed its global growth strategy by strengthening its
appearance in USA and UK. First Robit acquired the manufacturing assets and IPRs
from Halco International LLC and Halco America LLC ("Halco US") as at 12 January
2017.
In February 2017 Robit purchased a majority (51%) of Halco Brighthouse Ltd's
shares, which is the Halcos operating company in England. The agreement includes
the acquisition of 100% of the shares in Halco Drilling Ltd and Paddico (320)
Ltd, which owns 51% of Halco Brighthouse Ltd shares ("Halco UK"). The deal
included also the right and obligation to purchase the rest of the shares (49%)
after a year on the basis of an option.
These acquisitions strengthen Robit's Down the Hole business and complement the
acquisition that were executed in Australia and UK in 2016
Total consideration for the acquisitions amounted to EUR 4 078 thousand, of this
EUR 1 798 thousand was settled by issuing shares in Robit, EUR 1 812 thousand
was settled in cash at closing. Deferred consideration amounting to EUR 468
thousand was settled in cash on April. The exercise price of the option to
purchase 49% of the shares in Halco Brighthouse Ltd is linked to the net sales
in 2017 and it is capped to EUR 350 thousand (GBP 300 thousand).
As the deal of Halco UK included obligation to purchase rest of the shares (49%)
in Halco Brighouse Ltd from the key employees of Halco Brighouse Ltd, the
company has been consolidated in full to the Robit Group. The price for the
remaining shares is tied to the adjusted sales of Halco Brighouse Ltd and is
considered as employee benefit. As at the reporting date, the management's
estimate is that the payable for the remaining shares is the maximum GBP 300
thousand. For the six month period ended 30 June 2016 EUR 147 thousand (GBP 126
thousand) is recognized as employee benefit expense.
The following table summarizes the consideration paid for Halco UK and Halco US,
the fair values of assets acquired and liabilities assumed at the acquisition
date.
EUR thousand EUR thousand
-------------------------------------------------------------------------------
Cash paid 1 812
Equity consideration (Robit's shares) 1 798
Deferred consideration 468
-------------------------------------------------------------------------------
Total purchase consideration 4 078
-------------------------------------------------------------------------------
The assets and liabilities recognized as a result of the
acquisition are as follows:
EUR thousand Fair Value
-------------------------------------------------------------------------------
Intangible assets 187
Property, plant and equipment 3 765
Inventories 338
Account receivables and other receivables 813
Cash and cash equivalents 78
Deferred tax liabilities (298)
Finance lease liabilities (622)
Advance payments (72)
Account payables and other current liabilities (721)
-------------------------------------------------------------------------------
Net identifiable assets acquired 3 601
Goodwill 609
-------------------------------------------------------------------------------
Net assets acquired 4 078
-------------------------------------------------------------------------------
Acquisition-related costs (EUR 299 thousand) have been charged to administrative
expenses in the consolidated income statement for the period ended 30 June 2017.
The fair value of the 200 thousand ordinary shares issued as the consideration
paid for Halco UK was based on the published share price on 16 February 2017.
There were no significant issuing costs.
+----------------------------------+----------+----------+----------+
|CONSOLIDATED KEY FIGURES | H1/2017| H1/2016| 2016|
+----------------------------------+----------+----------+----------+
|Net sales, EUR 1.000 | 42 645| 21 076| 64 050|
+----------------------------------+----------+----------+----------+
|EBIT, EUR 1.000 | -1 288| 1 508| 4 262|
+----------------------------------+----------+----------+----------+
|EBIT, percent of sales | -3,02 %| 7,16 %| 6,65 %|
+----------------------------------+----------+----------+----------+
|Earnings per share | -0,11| 0,09| 0,26|
+----------------------------------+----------+----------+----------+
|Return on equity, % | -2,61 %| 5,00 %| 9,90 %|
+----------------------------------+----------+----------+----------+
|Equity ratio, % | 56,79 %| 42,50 %| 43,90 %|
+----------------------------------+----------+----------+----------+
|ROCE, % | -0,3 %| 9,30 %| 4,70 %|
+----------------------------------+----------+----------+----------+
|Net gearing | -4,10 %| 23,30 %| 73,70 %|
+----------------------------------+----------+----------+----------+
|Investments | 3 654| 656| 2 641|
+----------------------------------+----------+----------+----------+
|Investments, percent of sales | 8,57 %| 3,11 %| 4,12 %|
+----------------------------------+----------+----------+----------+
|Number of shares |21 083 900|15 784 333|15 784 333|
+----------------------------------+----------+----------+----------+
|Own shares | 94 674| 99 450| 99 567|
+----------------------------------+----------+----------+----------+
|Percentage of total shares | 0,45 %| 0,63 %| 0,63 %|
+----------------------------------+----------+----------+----------+
| | | | |
+----------------------------------+----------+----------+----------+
|CONSOLIDATED KEY FIGURES, ADJUSTED| H1/2017| H1/2016| 2016|
+----------------------------------+----------+----------+----------+
|Adjusted EBITDA | 2 908| 2 187| 10 251|
+----------------------------------+----------+----------+----------+
|Adjusted EBITDA, percent of sales | 6,82 %| 10,38 %| 16,00 %|
+----------------------------------+----------+----------+----------+
|Adjusted EBIT | 300| 1 508| 4 262|
+----------------------------------+----------+----------+----------+
|Adjusted EBIT, percent of sales | 0,70 %| 7,16 %| 6,65 %|
+----------------------------------+----------+----------+----------+
|Adjusted ROE, percent of sales | -0,43 %| 5,00 %| 9,90 %|
+----------------------------------+----------+----------+----------+
|Adjusted ROCE, percent of sales | 1,1 %| 9,30 %| 4,70 %|
+----------------------------------+----------+----------+----------+
CALCULATION OF KEY FIGURES
Operating profit + Depreciation and
EBITDA = amortization
Operating profit + Amortization of
EBITA = goodwill
Profit (loss) for the reporting
period
Earnings per share =---------------------------------------
(EPS), EUR Amount of shares adjusted with the
share issue (average during the
reporting period)
Profit (loss) for the
Return on equity, reporting period
percent =--------------------------x 100
Equity (average during
the reporting period)
Profit before appropriations and taxes + Interest
expenses and other financing expenses
Return on capital ---------------------------------------------------
employed (ROCE), = Equity (average during the reporting period) + x 100
percent Interest-bearing financial liabilities (long-term
and short-term loans from financial institutions,
average during the reporting period)
Net interest-bearing Long-term and short-term loans from financial
debt = institutions - Cash and cash equivalents - Short-
term financial securities
Equity
Equity ratio, =------------------------x 100
percent Balance sheet total -
Advances received
Net interest-bearing
Net gearing, percent = financial liabilities x 100
------------------------
Equity
Further information:
Mika Virtanen, Group CEO
+358 40 832 7583
mika.virtanen@robitgroup.com
Harri Sjöholm, Chairman
+358 400 622 092
harri.sjoholm@robitgroup.com
Robit is a strongly internationalized growth company selling and servicing
global customers in drilling consumables for applications in mining,
construction and contracting, tunneling and well drilling. The company's
offering is divided into three product and service range: Top Hammer and Down-
the-Hole products as well as Digital Services. Robit has 21 own sales and
service points as well as active sales networks in 115 countries. The
manufacturing units are located in Finland, South Korea, Australia, UK and USA.
Distribution:
Nasdaq Helsinki Ltd
Key media
www.robitgroup.com
[]
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