2010-11-11 07:15:00 CET
2010-11-11 07:15:02 CET
REGULATED INFORMATION
Salcomp Oyj - Interim report (Q1 and Q3)
NET SALES CONTINUED STRONG GROWTH, CASH FLOW CLEARLY IMPROVED
Salcomp Plc Interim Report 11 November 2010 at 8:15 a.m. Finnish time Salcomp Plc Interim Report 1 January - 30 September 2010 NET SALES CONTINUED STRONG GROWTH, CASH FLOW CLEARLY IMPROVED July-September 2010: -Net sales grew by 27% to EUR 86.5 million (EUR 68.1 million in July-September 2009). -Number of chargers delivered increased by 18% to 80.1 million pieces (68.0 million pieces). -Market share in mobile phone chargers increased by 2 percentage units to some 25% (23%). -Operating profit weakened by 23% to EUR 3.4 million (EUR 4.4 million). -Operating profit, excluding the exchange rate gains/losses, was EUR 3.8 million (EUR 4.4 million). -Earnings per share improved by 17% to EUR 0.07 (EUR 0.06). -In the comparison period, earnings per share, excluding the deferred tax, were EUR 0.08. -Cash flow from operating activities, excluding the change in selling of receivables, was EUR 6.3 million positive (EUR 4.6 million positive). January-September 2010: -Net sales grew by 24% to EUR 218.3 million (EUR 176.8 million in January-September 2009). -Number of chargers delivered increased by 24% to 214.6 million pieces (173.5 million pieces). -Operating profit was EUR 7.2 million (EUR 7.2 million). -Operating profit, excluding the exchange rate gains/losses, was EUR 6.6 million (EUR 7.2 million). -Earnings per share improved by 114% to EUR 0.15 (EUR 0.07). -In the comparison period, earnings per share, excluding the deferred tax, were EUR 0.13. -Cash flow from operating activities, excluding the change in selling of receivables, was EUR 12.6 million positive (EUR 1.9 million negative). -Group's net interest-bearing debt at the end of September was EUR -4.0 million (EUR 6.2 million). -Cash and cash equivalents at the end of September were EUR 22.5 million (EUR 21.5 million). -The above earnings figures do not take into account the impact of the contemplated internal structuring transaction explained below. Such contemplated internal transaction would have no impact on Group's result in 2010. Outlook for 2010: -Salcomp's net sales outlook for 2010 remains unchanged: The net sales are expected to improve compared to the 2009 level. However, the operating profit in 2010 is forecast to remain at approximately the same level as in 2009. According to the guidance in the previous quarterly report, the operating profit in 2010 was expected to improve compared to the 2009 level. Markku Hangasjärvi, President and CEO: ”The mobile phone and mobile phone charger market continued to grow. According to Salcomp's estimate, some 320 million mobile phones with registered trade marks were sold globally during the third quarter of the year, up by some 11% compared with the corresponding quarter in 2009. The number of chargers delivered and Salcomp's net sales clearly grew in the third quarter of the year compared with the corresponding quarter in 2009. The strong growth was due to market recovery and an increase in our market share by 2 percentage units. In addition, the net sales were increased by higher average sales prices of chargers. Despite an increase in the net sales, the operating profit weakened compared with the corresponding period last year, resulting from more expensive materials and components and a rise in labor costs due to lower productivity as a result of ramping up new products, adding new capacity and facing material shortages causing disturbances in manufacturing. In addition, accelerated efforts in broadening the product range and customer base increased fixed costs. During the review period, we took an important strategic step by introducing our own CHARGZ charger brand. Accessory chargers under the brand will be sold through the main retail channels, including consumer electronics, travel and office superstores, as well as through operators. Although chargers sold directly to mobile phone manufacturers still remain our core business, we also want to utilize our 35 years' experience in developing and manufacturing chargers in this growing segment of accessory chargers.” Financial development in July-September 2010 In July-September, Salcomp's net sales increased by 27% to EUR 86.5 million (EUR 68.1 million in July-September 2009) due to the increase in the number of chargers delivered by 18% to 80.1 million (68.0 million) pieces. In addition, net sales were increased due to higher average sales prices of chargers. Salcomp's market share in mobile phone chargers was approximately 25% (approximately 23%). Despite an increase in the net sales, Salcomp's operating profit weakened by 23% to EUR 3.4 million (EUR 4.4 million). This was due to a rise in material and component prices and labor costs due to lower productivity as a result of ramping up new products, adding new capacity and facing material shortages causing disturbances in manufacturing. In addition, accelerated efforts in broadening the product range and customer base increased fixed costs. Operating profit was also weakened by realized and unrealized exchange rate losses of EUR 0.4 million (EUR 0 million) in the review period. The operating margin in the third quarter of the year was 3.9% (6.4%). The Group's net finance expenses were EUR 0.5 million (EUR 1.0 million). The finance expenses for the third quarter of the year include EUR 0.2 million of losses (EUR 0.3 million of losses) due to the exchange rate differences in intragroup loans. Taxes for the quarter totaled EUR 0.3 million (EUR 1.2 million). Taxes in the comparison period include a deferred tax of EUR 0.7 million, resulting from the parent company's tax-deductible goodwill amortization. The goodwill was fully amortized in October 2009. The profit for the period amounted to EUR 2.6 million (EUR 2.3 million). Earnings per share were EUR 0.07 (EUR 0.06), and diluted earnings per share were EUR 0.07 (EUR 0.06) (excluding impact of the contemplated Group internal structuring transaction). Cash flow from operating activities in July-September amounted to EUR 6.9 million positive (EUR 4.6 million positive). The cash flow from operating activities, excluding the change in selling of receivables, was EUR 6.3 million positive (EUR 4.6 million positive). Financial development in January-September 2010 The net sales grew by 24% in January-September to EUR 218.3 million (EUR 176.8 million in January-September 2009). The number of chargers delivered increased by 24% to 214.6 million (173.5 million) pieces. The operating profit was EUR 7.2 million (EUR 7.2 million) in January-September. Although the net sales significantly grew in the review period, the operating profit remained at the same level as in the third quarter of 2009. This was due to higher material and component prices and an increase in labor costs due to lower productivity as a result of ramping up new products, adding new capacity and facing material shortages causing disturbances in manufacturing. In addition, accelerated efforts in broadening the product range and customer base increased fixed costs. The operating profit was improved by some EUR 0.6 million (EUR 0 million) in realized and unrealized exchange rate gains. The operating margin in January-September was 3.3% (4.1%). The Group's net finance expenses were EUR 0.7 million (EUR 0.9 million). The finance expenses for the period include EUR 0.7 million of gains (EUR 0.7 million of gains) due to the unrealized exchange rate differences in intra-group loans. Taxes for the period totaled EUR 0.8 million (EUR 3.4 million). Taxes in the comparison period include a deferred tax of EUR 2.2 million resulting from the parent company's tax-deductible goodwill amortization. The goodwill was fully amortized in October 2009. The profit for the period amounted to EUR 5.7 million (EUR 2.9 million). Earnings per share were EUR 0.15 (EUR 0.07) and diluted earnings per share EUR 0.15 (EUR 0.07). R&D and capital expenditure The Group's R&D expenditure was EUR 5.0 million (EUR 4.0 million) in January-September, or 2.3% (2.2%) of net sales. R&D focused on developing new products for current and new customers, and constant improvement in the cost structure of existing products. In August, Salcomp introduced its own charger brand, CHARGZ. Accessory chargers under the brand will be sold through the selected retail channels and operators. The launch will first take place in North America followed by Asia-Pacific. In September, Salcomp introduced a new Twist charger platform. Twist chargers are the first chargers in the market in which the stand-by consumption is literally zero. Salcomp has developed an innovative solution in which the plugged-in charger can be set in zero-stand-by mode; meaning that by twisting the charger against the plug, no electric energy is consumed. The charger can thus be switched off in the stand-by mode and again switched on when charging is needed. Capital expenditure in January-September amounted to EUR 7.0 million (EUR 0.7 million). The capital expenditure mainly involved increasing the production capacity in the low and medium power range chargers. Financing Cash flow from operating activities in January-September amounted to EUR 13.5 million positive (EUR 3.0 million negative). The cash flow from operating activities, excluding the change in selling of receivables, was EUR 12.6 million positive (EUR 1.9 million negative). Cash and cash equivalents at the end of September were EUR 22.5 million (EUR 21.5 million). The Group's equity ratio at the end of September was 40.3% (40.5%) and gearing was -5.7% (8.9%). Net interest-bearing debt totaled EUR -4.0 million (EUR 6.2 million) at the end of the period. Renewing the Group's financial package in June involved a one-off cost of approximately EUR 0.2 million. Personnel The number of Group personnel at the end of September totaled 11,007 (7,757): 6,820 were employed in China, 1,738 in Brazil, 2,383 in India, and 66 in Finland and other countries. Compared with the corresponding period last year, the number of personnel increased mainly due to the rise in production volumes. Tiina Vartiainen was appointed Corporate Vice President, Human Resources, and Member of the Global Management Team at Salcomp as of 1 January 2011. Niilo Oksa, Salcomp's former Corporate Vice President, Human Resources, retired at the end of September. Shares and shareholders Salcomp's registered share capital amounts to EUR 9,832,735.12, divided into 39,023,840 fully paid outstanding shares and 337,000 shares in the possession of the company. The company has one series of shares, and all the shares entitle the shareholder to equal rights in the company. Salcomp's share price fluctuated between EUR 1.80 and EUR 2.19 in January-September. The average share price during the period was EUR 2.00 and the closing price at the end of September EUR 1.98. Share trading amounted to EUR 3.4 million and 1.7 million shares, including the shares subscribed in the directed issue in June, a total of 385,650 shares. According to the book-entry system, Salcomp had 1,094 shareholders at the end of the period. Foreign ownership at the end of September was 78.6% and the market value EUR 77.9 million. Risks and uncertainties in the near future Salcomp's business involves uncertainty factors that may affect the company's financial development in the near future. These include the general development of the mobile phone markets, substantial changes in the purchase prices and availability of materials and charger components and changes in the competition in the mobile phone charger markets. Furthermore, consolidation of the customer base and deterioration in the financial position of a major customer may have a negative effect on Salcomp's business. Major changes in exchange rates can be considered one of the other short- term uncertainty factors, especially the exchange rate of the US dollar in relation to the euro and to currencies in those countries in which Salcomp has production. In addition, the impact of the global economy on the stability of the financial market, as well as accessibility of financing, has an influence on Salcomp's business. In the medium term, Salcomp's business may be affected by standardization projects concerning mobile phone chargers in the different market areas. Due to standardization, it is possible that in the future, in some market areas, part of mobile phone kits will not include a separate mobile phone charger. Risks are managed to the extent that the company has influence over them. Further details on risks and risk management are available in the Annual Report 2009. Events after the reporting period There are no events after the reporting date which would have a significant influence on the figures presented in the Interim Report. Change in the Group structure Salcomp is contemplating an internal group structuring whereby the parent company would during the last quarter of 2010 transfer certain activities to a fully owned subsidiary. If the structuring would be implemented, Salcomp Plc would realize a taxable gain of EUR 35 million which would increase distributable funds by the same amount as existing tax losses would be utilized. No deferred tax asset relating to this transaction has been recorded in the previous financial statements, nor have any tax assets been booked in the third quarter of 2010. The contemplated transaction will have no impact on the Group full year result. Outlook for 2010 According to the estimates published by some of Salcomp's key customers and by various market research companies, the mobile phone market is expected to grow by some 10% during 2010, compared with 2009. Measured by the number of units, this would mean approximately 1.3 billion mobile phones and, therefore, mobile phone chargers, to be sold in 2010. This lays a solid base for increasing the number of chargers delivered by Salcomp, as well as the net sales, also in the last quarter of the year, compared with the corresponding period last year. On the other hand, labor costs and prices of materials and components used in chargers are expected to continue to rise somewhat during the last quarter, creating challenges in improving the operating profit. Salcomp's net sales outlook for 2010 remains unchanged: The net sales are expected to improve compared to the 2009 level. However, the operating profit in 2010 is forecast to remain at approximately the same level as in 2009. According to the guidance in the previous quarterly report, the operating profit in 2010 was expected to improve compared to the 2009 level. Helsinki 11 November 2010 Salcomp Plc Board of Directors Further information: Markku Hangasjärvi, President and CEO, tel. +358 40 7310 114 Jari Saarinen, CFO, tel. +358 40 5004 206 An English teleconference for analysts and media will be held on 11 November 2010 at 15:30 Finnish time. For further information concerning the attendance of the teleconference, contact Päivi Luoti via email ext-paivi.luoti@salcomp.com. The Interim Report slide show presentation will be available at Salcomp's web page, www.salcomp.com > Investors after the disclosure of the stock exchange release. Salcomp's Financial Statements Release for 2010 will be published on Friday, 18 February 2011. -------------------------------------------------------------------------------- | STATEMENT OF COMPREHENSIVE INCOME | | (EUR 1 000) | -------------------------------------------------------------------------------- | | 1-9/2010 | 1-9/2009 | Change % | 1-12/2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 218 275 | 176 756 | 23.5% | 239 455 | -------------------------------------------------------------------------------- | Cost of sales | -196 680 | -157 645 | 24.8% | -213 167 | -------------------------------------------------------------------------------- | Gross margin | 21 595 | 19 111 | 13.0% | 26 288 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Other operating income | 103 | 22 | 368.2% | 90 | -------------------------------------------------------------------------------- | Sales and marketing | -2 339 | -1 515 | 54.4% | -2 063 | | expenses | | | | | -------------------------------------------------------------------------------- | Administrative expenses | -7 151 | -6 360 | 12.4% | -8 685 | -------------------------------------------------------------------------------- | Research and development | -4 972 | -3 965 | 25.4% | -5 283 | | expenses | | | | | -------------------------------------------------------------------------------- | Other operating expenses | -64 | -109 | -41.3% | -131 | -------------------------------------------------------------------------------- | Operating result | 7 172 | 7 184 | -0.2% | 10 216 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Finance income | 675 | 707 | -4.5% | 1 228 | -------------------------------------------------------------------------------- | Finance expenses | -1 370 | -1 601 | -14.4% | -2 325 | -------------------------------------------------------------------------------- | Result before tax | 6 477 | 6 290 | 3.0% | 9 119 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Income tax expenses | -761 | -3 391 | -77.6% | -3 861 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Result for the period | 5 716 | 2 899 | 97.2% | 5 258 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Other comprehensive | | | | | | income for the period | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Exchange differences on | 1 645 | 2 293 | -28.3% | 3 069 | | translating foreign | | | | | | operations | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Other comprehensive | 1 645 | 2 293 | -28.3% | 3 069 | | income for the period, | | | | | | net of tax | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL COMPREHENSIVE | 7 361 | 5 192 | 41.8% | 8 327 | | INCOME FOR THE PERIOD | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Basic earnings per | 0.15 | 0.07 | 114.3% | 0.13 | | share, EUR | | | | | -------------------------------------------------------------------------------- | Diluted earnings per | 0.15 | 0.07 | 114.3% | 0.14 | | share, EUR | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT OF COMPREHENSIVE | | | | | INCOME | | | | | (EUR 1 000) | | | | -------------------------------------------------------------------------------- | | 7-9/2010 | 7-9/2009 | Change % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 86 470 | 68 078 | 27.0% | -------------------------------------------------------------------------------- | Cost of sales | -77 956 | -59 776 | 30.4% | -------------------------------------------------------------------------------- | Gross margin | 8 514 | 8 302 | 2.6% | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Other operating income | 1 | 11 | -90.9% | -------------------------------------------------------------------------------- | Sales and marketing | -878 | -551 | 59.3% | | expenses | | | | -------------------------------------------------------------------------------- | Administrative expenses | -2 559 | -2 141 | 19.5% | -------------------------------------------------------------------------------- | Research and development | -1 656 | -1 236 | 34.0% | | expenses | | | | -------------------------------------------------------------------------------- | Other operating expenses | -57 | 0 | - | -------------------------------------------------------------------------------- | Operating profit | 3 365 | 4 385 | -23.3% | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Finance income | -324 | -309 | 4.9% | -------------------------------------------------------------------------------- | Finance expenses | -190 | -652 | -70.9% | -------------------------------------------------------------------------------- | Profit before tax | 2 851 | 3 424 | -16.7% | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Income tax expenses | -293 | -1 173 | -75.0% | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Profit for the period | 2 558 | 2 251 | 13.6% | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Other comprehensive income for | | | | | the period | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Exchange differences on | -1 837 | 117 | - | | translating foreign operations | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Other comprehensive income for | -1 837 | 117 | - | | the period, net of tax | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL COMPREHENSIVE INCOME FOR | 721 | 2 368 | -69.6% | | THE PERIOD | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Basic earnings per share, EUR | 0.07 | 0.06 | 16.7% | -------------------------------------------------------------------------------- | Diluted earnings per share, | 0.07 | 0.06 | 16.7% | | EUR | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT OF FINANCIAL POSITION | | (EUR 1 000) | -------------------------------------------------------------------------------- | | 30.9.2010 | 30.9.2009 | Change % | 31.12.2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | | | | -------------------------------------------------------------------------------- | Property, plant and | 24 127 | 19 550 | 23.4% | 19 886 || equipment | | | | | -------------------------------------------------------------------------------- | Goodwill | 66 412 | 66 412 | 0.0% | 66 412 | -------------------------------------------------------------------------------- | Other intangible | 729 | 378 | 92.9% | 405 | | assets | | | | | -------------------------------------------------------------------------------- | Deferred tax assets | 3 252 | 3 057 | 6.4% | 3 180 | -------------------------------------------------------------------------------- | | 94 520 | 89 397 | 5.7% | 89 883 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Inventories | 31 742 | 18 955 | 67.5% | 20 329 | -------------------------------------------------------------------------------- | Trade and other | 44 204 | 41 373 | 6.8% | 32 623 | | receivables | | | | | -------------------------------------------------------------------------------- | Cash and cash | 22 536 | 21 539 | 4.6% | 18 872 | | equivalents | | | | | -------------------------------------------------------------------------------- | | 98 482 | 81 867 | 20.3% | 71 824 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Total assets | 193 002 | 171 264 | 12.7% | 161 707 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity and liabilities | | | | | -------------------------------------------------------------------------------- | Share capital | 9 833 | 9 833 | 0.0% | 9 833 | -------------------------------------------------------------------------------- | Invested unrestricted | 5 820 | 22 035 | -73.6% | 22 035 | | equity | | | | | -------------------------------------------------------------------------------- | Retained earnings | 62 120 | 37 527 | 65.5% | 40 741 | -------------------------------------------------------------------------------- | | 77 773 | 69 395 | 12.1% | 72 609 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Non-current | | | | | | liabilities | | | | | -------------------------------------------------------------------------------- | Deferred tax | 17 299 | 17 049 | 1.5% | 17 313 | | liabilities | | | | | -------------------------------------------------------------------------------- | Capital loans | 0 | 10 000 | - | 10 000 | -------------------------------------------------------------------------------- | Interest-bearing | 15 644 | 14 467 | 8.1% | 5 882 | | liabilities | | | | | -------------------------------------------------------------------------------- | | 32 943 | 41 516 | -20.6% | 33 195 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Current liabilities | | | | | -------------------------------------------------------------------------------- | Trade and other | 79 861 | 57 120 | 39.8% | 52 671 | | payables | | | | | -------------------------------------------------------------------------------- | Interest-bearing | 2 425 | 3 233 | -25.0% | 3 232 | | current liabilities | | | | | -------------------------------------------------------------------------------- | | 82 286 | 60 353 | 36.3% | 55 903 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Total equity and | 193 002 | 171 264 | 12.7% | 161 707 | | liabilities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT OF CHANGES IN EQUITY | | (EUR 1 000) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to equity holders of the parent | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | Share | Invested | Translati | Retained | Total | | | | capital | unrestrict | on | earnings | equity | | | | | ed equity | differenc | | | | | | | | es | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity on 1 Jan | 9 833 | 22 035 | -784 | 32 695 | 63 779 | | 2009 | | | | | | -------------------------------------------------------------------------------- | | Total | 0 | 0 | 2 337 | 2 899 | 5 236 | | | comprehensi | | | | | | | | ve income | | | | | | | | for the | | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | | Incentive | 0 | 0 | 0 | 380 | 380 | | | plan | | | | | | -------------------------------------------------------------------------------- | Equity on 30 | 9 833 | 22 035 | 1 553 | 35 974 | 69 395 | | Sept 2009 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity on 1 Jan | 9 833 | 22 035 | 2 285 | 38 456 | 72 609 | | 2010 | | | | | | -------------------------------------------------------------------------------- | | Total | 0 | 0 | 1 645 | 5 716 | 7 361 | | | comprehensi | | | | | | | | ve income | | | | | | | | for the | | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | | Share issue | 0 | 96 | 0 | 0 | 96 | -------------------------------------------------------------------------------- | | Repayment | 0 | -2 730 | 0 | 0 | -2 730 | | | of capital | | | | | | -------------------------------------------------------------------------------- | | Accumulated | | -13 581 | 0 | 13 581 | 0 | | | losses | | | | | | | | covered | | | | | | -------------------------------------------------------------------------------- | | Incentive | 0 | 0 | 0 | 437 | 437 | | | plans | | | | | | -------------------------------------------------------------------------------- | Equity on 30 | 9 833 | 5 820 | 3 930 | 58 190 | 77 773 | | Sept 2010 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT OF CASH FLOWS | | (EUR 1 000) | -------------------------------------------------------------------------------- | | 1-9/2010 | 1-9/2009 | Change % | 1-12/2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow before change in | 11 528 | 11 227 | 2.7% | 15 535 | | working capital | | | | | -------------------------------------------------------------------------------- | Change in working capital | 4 175 | -12 374 | - | -10 521 | -------------------------------------------------------------------------------- | Financial items and taxes | -2 210 | -1 900 | 16.3% | -1 852 | -------------------------------------------------------------------------------- | Net cash flow from | 13 493 | -3 047 | - | 3 162 | | operating activities | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Purchases | -6 998 | -671 | 942.9% | -1 592 | -------------------------------------------------------------------------------- | Sales | 24 | 19 | 26.3% | 64 | -------------------------------------------------------------------------------- | Cash flows from investing | -6 974 | -652 | 969.6% | -1 528 | | activities | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Cash flow before financing | 6 519 | -3 699 | - | 1 634 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Withdrawal of borrowings | 18 257 | 27 000 | -32.4% | 27 000 | -------------------------------------------------------------------------------- | Repayment of borrowings | -19 333 | -29 425 | -34.3% | -38 092 | -------------------------------------------------------------------------------- | Share issue | 96 | 0 | - | 0 | -------------------------------------------------------------------------------- | Dividends* | -2 730 | 0 | - | | -------------------------------------------------------------------------------- | Net cash flow from | -3 710 | -2 425 | 53.0% | -11 092 | | financing activities | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Change in cash and cash | 2 809 | -6 124 | - | -9 458 | | equivalents | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents | 18 872 | 26 590 | -29.0% | 26 590 | | at the beginning of the | | | | | | period | | | | | -------------------------------------------------------------------------------- | Translation difference | 855 | 1 073 | -20.3% | 1 740 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 22 536 | 21 539 | 4.6% | 18 872 | | at the end of the period | | | | | -------------------------------------------------------------------------------- *repayment of capital -------------------------------------------------------------------------------- | KEY FIGURES | | | | | -------------------------------------------------------------------------------- | | 1-9/ | 1-9/ | Change | 1-12/ | | | 2010 | 2009 | % | 2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sold chargers, Mpcs | 214.6 | 173.5 | 23.7% | 243.3 | -------------------------------------------------------------------------------- | Average sales price, | 1.02 | 1.02 | 0.0% | 0.98 | | EUR | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales, MEUR | 218.3 | 176.8 | 23.5% | 239.5 | -------------------------------------------------------------------------------- | EBITDA, MEUR | 11.1 | 10.9 | 2.0% | 15.1 | -------------------------------------------------------------------------------- | EBITDA%, % | 5.1% | 6.2% | | 6.3% | -------------------------------------------------------------------------------- | Operating result, | 7.2 | 7.2 | 0.0% | 10.2 | | MEUR | | | | | -------------------------------------------------------------------------------- | Operating margin, % | 3.3% | 4.1% | | 4.3% | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Basic earnings per | 0.15 | 0.07 | 114.3% | 0.13 | | share, EUR | | | | | -------------------------------------------------------------------------------- | Diluted earnings per | 0.15 | 0.07 | 114.3% | 0.14 | | share, EUR | | | | | -------------------------------------------------------------------------------- | Earnings per share | 0.15 | 0.13 | 15.4% | 0.20 | | excluding deferred | | | | | | tax, EUR | | | | | -------------------------------------------------------------------------------- | Equity per share, | 1.99 | 1.78 | 11.8% | 1.86 | | EUR | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on equity, % | 10.7% | 1.6% | | 7.7% | -------------------------------------------------------------------------------- | Return on capital | 12.1% | 10.2% | | 12.3% | | employed, % | | | | | -------------------------------------------------------------------------------- | Return on net | 49.1% | 40.8% | | 61.2% | | assets, % | | | | | -------------------------------------------------------------------------------- | Equity ratio, % | 40.3% | 40.5% | | 44.9% | -------------------------------------------------------------------------------- | Gearing, % | -5.7% | 8.9% | | 0.3% | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital expenditure, | 7.0 | 0.7 | 899.7% | 1.6 | | MEUR | | | | | -------------------------------------------------------------------------------- | Capital expenditure, | 3.2% | 0.4% | | 0.7% | | % of net sales | | | | | -------------------------------------------------------------------------------- | Personnel on average | 9 505 | 7 036 | 35.1% | 7 312 | -------------------------------------------------------------------------------- | Personnel at the end | 11 007 | 7 757 | 41.9% | 7 900 | | of period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of | 38 992 668 | 38 975 190 | | 38 975 190 | | shares outstanding | | | | | -------------------------------------------------------------------------------- | Number of shares | 39 023 840 | 38 975 190 | | 38 975 190 | | outstanding at the | | | | | | end of period | | | | | -------------------------------------------------------------------------------- | Diluted number of | 38 824 522 | 37 985 895 | | 38 187 925 | | shares outstanding | | | | | | on average | | | | | -------------------------------------------------------------------------------- | Highest share price, | 2.19 | 1.94 | | 1.99 | | EUR | | | | | -------------------------------------------------------------------------------- | Lowest share price, | 1.80 | 1.15 | | 1.15 | | EUR | | | | | -------------------------------------------------------------------------------- | Average share price, | 2.00 | 1.53 | | 1.60 | | EUR | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Traded shares, Mpcs | 1.7 | 0.8 | | 1.9 | -------------------------------------------------------------------------------- | Traded shares, MEUR | 3.4 | 1.3 | | 3.1 | -------------------------------------------------------------------------------- NOTES TO THE INTERIM REPORT This Interim Report has been prepared in accordance with the international financial accounting standard IAS 34 Interim Reports. The same accounting principles are applied in this Interim Report as in the Financial Statements. Salcomp has, as of 1 January 2009, applied the revised IAS 1 Presentation of Financial Statements standard, as well as the new IFRS 8 Operating Segments standard. Other amended standards or interpretations have not affected this Interim Report. Adoption of IFRS 8 has no impact on the number of reported segments, but only on the notes presented in the Financial Statements. Salcomp has one business segment, chargers. Internal management reporting complies with the IFRS reporting and due to this, separate adjustments are not presented. -------------------------------------------------------------------------------- | LIABILITIES | | (EUR 1 000) | -------------------------------------------------------------------------------- | | 30.9.2010 | 30.9.2009 | Change % | 31.12.2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | For own dept | | | | | -------------------------------------------------------------------------------- | | Company and real | 82 000 | 82 000 | 0.0% | 82 000 | | | estate mortgages | | | | | -------------------------------------------------------------------------------- | | Others | 5 | 5 | 0.0% | 5 | -------------------------------------------------------------------------------- | Leasing and rental | 6 142 | 7 698 | -20.2% | 7 359 | | liabilities | | | | | -------------------------------------------------------------------------------- | | 88 147 | 89 703 | -1.7% | 89 364 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY INFORMATION | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 7-9/10 | 4-6/10 | 1-3/10 | 10-12/0 | 7-9/09 | 10/09-9/ | | | | | | 9 | | 10 | -------------------------------------------------------------------------------- | Sold chargers, | 80 098 | 68 586 | 65 941 | 69 817 | 68 040 | 284 442 | | kpcs | | | | | | | -------------------------------------------------------------------------------- | Net sales, | 86 470 | 72 170 | 59 635 | 62 699 | 68 078 | 280 974 | | kEUR | | | | | | | -------------------------------------------------------------------------------- | Operating | 3 365 | 2 327 | 1 480 | 3 032 | 4 385 | 10 204 | | result, kEUR | | | | | | | -------------------------------------------------------------------------------- | Operating | 3.9% | 3.2% | 2.5% | 4.8% | 6.4% | 3.6% | | margin, % | | | | | | | -------------------------------------------------------------------------------- | Average sales | 1.08 | 1.05 | 0.90 | 0.90 | 1.00 | 0.99 | | price, EUR | | | | | | | -------------------------------------------------------------------------------- OPTION RIGHTS During the financial year 2007, the General Meeting of Shareholders established an option program with a total of 2,047,500 option rights that entitle to subscribe the same amount of new shares of the company. The option program is divided to symbols 2007A, 2007B and 2007C. The Board of Directors has not granted option rights to Group key personnel during the financial year. The share based incentives are conditional. The vesting conditions are based on that the total shareholder return is at least 8 % per annum. Options are lost when a person is leaving the company before the settlement period begins. The Board of Directors can decide in these cases that the stock option owner is entitled to keep the options or a part of them. The fair value has been determined using the Cox-Ross-Rubinstein binomial model. -------------------------------------------------------------------------------- | Program symbol | 2007A | 2007B | 2007C | Total | | | | | | options | -------------------------------------------------------------------------------- | Number of options | 657 500 | 682 500 | 707 500 | 2 047 500 | -------------------------------------------------------------------------------- | Vesting period | 1.4.2007- | 1.4.2008- | 1.4.2009- | | | | 31.3.2010 | 31.3.2011 | 31.3.2012 | | -------------------------------------------------------------------------------- | Options granted | 497 500 | 545 000 | 627 500 | 1 670 000 | | before the current | | | | | | financial year | | | | | -------------------------------------------------------------------------------- | Options granted | 0 | 0 | 0 | | | during the current | | | | | | financial year | | | | | -------------------------------------------------------------------------------- | Options forfeited | -32 500 | -37 500 | 0 | -70 000 | | during the current | | | | | | financial year | | | | | -------------------------------------------------------------------------------- | Settlement (shares | 1 | 1 | 1 | | | / option) | | | | | -------------------------------------------------------------------------------- | Settlement period | 1.4.2010- | 1.4.2011- | 1.4.2012- | | | | 31.3.2012 | 31.3.2013 | 31.3.2014 | | -------------------------------------------------------------------------------- | Grant date | 02.05.07 | 07.05.08 | 11.08.09 | | -------------------------------------------------------------------------------- | Exercise price | 2.81 | 3.33 | 1.40 | | -------------------------------------------------------------------------------- | Share price at | 3.51 | 3.79 | 1.51 | | | grant date | | | | | -------------------------------------------------------------------------------- | The fair value of | 1.44 | 1.44 | 0.61 | | | option at grant | | | | | | date | | | | | -------------------------------------------------------------------------------- SHARE BASED INCENTIVE PROGRAM The Board of Directors of Salcomp Plc has approved two new share-based incentive programs for the Group key personnel. The new programs are a Matching Share Program targeted at the members of the Extended Global Management Team, as well as a Performance Share Program targeted at 53 key employees including also the members of the Extended Global Management Team. Both Programs include one earning period, from calendar year 2010 to 2012. The potential rewards from both the Matching and Performance Share programs will be paid partly in Company shares and partly in cash during 2013. The cash payment is intended to cover the personal taxes and tax-related costs arising from the reward. No reward will be paid to a key person, if his or her employment or service in a Group Company ends before the reward payment. The rewards to be paid on the basis of the earning period will correspond to the value of maximum 532,000 Salcomp Plc shares. Global Management Team can earn a total of 281,000 pcs of Salcomp Plc shares during the total earning period. Releases relating to the new incentive program have been issued in May 19 and June 21, 2010. -------------------------------------------------------------------------------- | RELATED PARTY INFORMATION | | (EUR 1 000) | -------------------------------------------------------------------------------- | Related party | 30.9.2010 | 30.9.2009 | Change % | 31.12.2009 | | transactions with | | | | | | Nordstjernan AB | | | | | -------------------------------------------------------------------------------- | Capital loans | 0 | 10 000 | - | 10 000 | -------------------------------------------------------------------------------- | Interest payable of | 0 | 176 | - | 787 | | capital loans | | | | | -------------------------------------------------------------------------------- | Sales of receivables | 0 | 83 | - | 0 | -------------------------------------------------------------------------------- | Interest expense of the | 553 | 176 | 214.2% | 787 | | period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Salcomp has renewed the financing arrangements in May. In this connection, | | the capital loans have been repaid to Nordstjernan AB. Release on the issue | | has been published in May 25, 2010. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OWN SHARES | -------------------------------------------------------------------------------- | | 30.9.2010 | 30.9.2009 | 31.12.09 | -------------------------------------------------------------------------------- | Parent company own shares | 337 000 | 0 | 0 | | (pcs) | | | | -------------------------------------------------------------------------------- CALCULATION OF FINANCIAL RATIOS Average personnel: Average number of personnel at end of each month Return on equity (%) = Result for the period x 100 : Equity on average Return on capital employed (%) = (Result before tax + interest charges and other financial expenses) x 100 : (Total liabilities less interest-free debt (on average)) Return on net assets (%) = Operating result x 100 : (Fixed assets less goodwill and deferred tax assets + inventory + short-term receivables less short-term interest-free debt on average) Equity ratio (%) = Equity x 100 : Total liabilities less received advance payments Gearing (%) = (Interest-bearing debt less cash and cash equivalents) x 100 : Equity Earnings per share = Result for the period : Weighted average number of shares outstanding during the period Equity per share = Equity : number of shares outstanding at the end of period Earnings per share, diluted = Result for the period : Weighted average number of shares outstanding during the period, adjusted for the share issue
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