Panostaja Oyj - Financial Statement Release

PANOSTAJA GROUP FINANCIAL STATEMENT BULLETIN

November 1, 2014–October 31, 2015 (12 months)

  -- Net sales increased by 22% and stood at MEUR 148.2 (MEUR 121.1). 
  -- EBIT decreased by MEUR 0.7 to MEUR 7.3 (MEUR 8.1).  
  -- The profit for the financial period was MEUR 13.5 (MEUR 8.2).
  -- Operating cash flow deteriorated and was MEUR 8.0 (MEUR 11.4).



Proposal for the distribution of profits:

The Board of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.05 per share be paid for the past financial period. 



OUTLOOK FOR THE 2016 FINANCIAL PERIOD

In the corporate acquisitions market, Panostaja’s activity in the target size
category has remained as before. The need for SMEs to utilize ownership
arrangements and growth opportunities persists, and there are still a
sufficient number of corporate acquisition opportunities in the markets for
those who take an active approach. Panostaja’s intention is to implement its
strategy during the financial period by investing in 1–2 new segments and
making corporate acquisitions in the current segments of choice. Divestment
possibilities will also be assessed actively as part of the segments’ owner
strategies. 

Economic prospects in the business areas of the current segments continue to be
marred by the uncertainty and poor predictability of the general economic
development. The prospects in Panostaja’s segments vary from positive to weak.
Despite the uncertain market situation, the growth and development measures
implemented support the development of the segments. 

The Group’s EBIT is expected to improve substantially over the course of the
2016 financial period. 



CEO Juha Sarsama: A year of significant corporate restructurings

We conducted significant corporate restructurings during the past financial
period. We established a new Oral Health Care segment by acquiring a majority
shareholding in Megaklinikka Oy, a company that utilizes a new kind of service
concept. We also significantly expanded our Digital Printing Services segment
when Multiprint Oy and Grano Oy merged to form the leading player in the field
and a pioneer whose annual net sales are slated to reach approximately MEUR 90.
We also divested one of our largest segments by selling Flexim Security Oy to
Assa Abloy Oy, recording MEUR 8.6 in sales profit for the transaction. During
our eight-year ownership, Flexim Security quadrupled its net sales and became
one of the leading experts in its field as a developer of worry-free and safe
access control. 

Our profit development was moderate in the challenging market climate. The
corporate acquisitions we conducted increased our net sales by 22% over the
previous year. However, due to the continuously challenging market situation
and costs related to the Multiprint merger, our EBIT stood at MEUR 7.3, which
was slightly lower than the previous year. There were still substantial
differences between segments in terms of profit development. 

The economic situation in Finland remained uncertain. The Syrian crisis,
Russia, and the decline of the Chinese economy are causing widespread and
prolonged uncertainty in European economic development. The development in the
price of oil is causing investments to dwindle in the off-shore sector. The
general economic situation and atmosphere are challenging, which is reflected
in almost all the Group’s business segments. 

Activity in the corporate acquisitions market has remained as before. The
markets still provide opportunities for both new acquisitions and select
divestments. Our aim is to be an active player on the market for target
companies that are in accordance with our strategy. 



August 1, 2015–October 31, 2015 (Q4)

  -- Net sales increased by 27% and stood at MEUR 44.1 (MEUR 34.8). The impact
     of the corporate acquisitions on the MEUR 9.3 growth in net sales for the
     third quarter stood at MEUR 10.0. Net sales increased in three of the eight
     segments.


  -- EBIT decreased by MEUR 0.3 to MEUR 3.1 (MEUR 3.5). The market situation
     remained challenging in almost all segments, as a result of which
     profitability did not reach the level of the reference year for all areas.
     Four segments out of eight exceeded the EBIT for the reference period.


  -- Profit before taxes MEUR 1.4 (MEUR 2.8)


  -- The profit for the review period was MEUR 13.5 (MEUR 2.4).


  -- Earnings per share (undiluted) were 17.6 cents (1.6 cents)


  -- Operating cash flow deteriorated and was MEUR -1.6 (MEUR 6.2).


  -- The sale of Flexim Security Oy to Assa Abloy Oy was completed during the
     review period. The Group recorded a sales profit of MEUR 8.6 before taxes
     for the fourth quarter.




November 1, 2014–October 31, 2015 (12 months)

  -- Net sales increased by 22% and stood at MEUR 148.2 (MEUR 121.1). The impact
     of the corporate acquisitions on the MEUR 27.1 growth in net sales stood at
     MEUR 28.4. Net sales increased in three of the eight segments.


  -- EBIT declined and was MEUR 7.3 (MEUR 8.1). EBIT in the review period was
     encumbered by the difference of MEUR -0.5 between the values of Kotisun
     Oy’s additional purchase price and the value on the balance sheet date,
     which has been recognized in the company’s other costs, as well as the MEUR
     1.7 cost caused by the Multiprint arrangement. One segment out of eight
     exceeded the EBIT for the reference period.


  -- Profit before taxes was MEUR 3.4 (MEUR 5.6)


  -- The profit for the review period, including the sales profit from Flexim
     Security Oy, was MEUR 13.5 (MEUR 8.2). The reference period includes the
     MEUR 5.5 sales profit for Vindea and the discontinued operations of Takoma.


  -- Earnings per share (undiluted) were 14.1 cents (9.4 cents)


  -- Operating cash flow deteriorated and was MEUR 8.0 (MEUR 11.4).



PRESS CONFERENCE

Panostaja will hold a press conference for analysts, investors and the press on
the same day on December 11, 2015 from 10:00am to 11:00am at Hotel Scandic
Simonkenttä, Bulsa-Freda 1-2, Simonkatu 9, Helsinki. 

The interim report, presentations and other investor information are available
at: www.panostaja.fi. 

Panostaja Oyj



Juha Sarsama

CEO



Further information:

CEO Juha Sarsama, Panostaja Oyj, +358 (0)40 774 2099

Distribution: NASDAQ OMX Helsinki, key media, www.panostaja.fi.



Panostaja is an investment company developing Finnish SMEs in the role of an
active majority shareholder. The company aims to be the most sought-after
partner for business owners selling their companies as well as for the best
managers and investors. Together with its partners, Panostaja increases the
Group's shareholder value and creates Finnish success stories. 

Panostaja has eight segments engaging in business operations. Grano Oy (Digital
Printing Services) forms Finland’s largest company offering digital printing
services and publication and production services. Heatmasters Group (Heat
Treatment) offers thermal treatment services for metals in Finland and
internationally, and produces, develops and markets heat treatment technology.
KL-Varaosat (Spare Parts for Motor Vehicles) is an importer, wholesale dealer
and retailer of original spare parts and supplies for Mercedes Benz, BMW and
Volvo cars. Megaklinikka Oy (Oral Health Care) is a company providing oral
health care services. The company is a dental clinic offering a completely new
kind of service concept. Suomen Helakeskus Oy (Fittings) is a major wholesale
dealer concentrating on construction and furniture fittings. Selog Oy (Ceiling
Materials) is a specialty supplier and wholesaler of ceiling materials. Takoma
Oyj (Takoma) is a listed machine shop group. KotiSun Oy (Building Technology
Renovation) is Finland’s leading company in service water and heating network
building technology renovations for detached houses.

Attachments:

Panostaja Oyj 11.12.2015 Financial Statement Bulletin_APPENDIX ID 19028.pdf