EXEL OYJ INTERIM REPORT 30 October, 2008 at 11.00 am 1 (12)
EXEL INTERIM REPORT FOR JANUARY 1 - SEPTEMBER 30, 2008
Profit of the Group improved during Q3
January-September 2008 highlights
- Net sales decreased to EUR 72.8 (85.4) million, 14.7 per cent below the
corresponding period previous year
- Operating profit was EUR -1.8 (4.1) million, or -2.5 (4.8) per cent of net
sales, including EUR -7.1 (-4.2) million non-recurring items
- Fully diluted earnings per share were EUR -0.24 (+0.17)
- Cash flow from operations was EUR +4.9 (-2.9) million
July-September 2008 highlights
- Net sales were EUR 23.9 (27.9) million, 14.3 per cent below previous year
- Operating profit was EUR 2.5 (-2.1) million, or 10.4 (-7.4) per cent of net
sales, including EUR +0.2 (-4.2) million non-recurring items
- Fully diluted earnings per share EUR +0.07 (-0.19)
Comments by Vesa Korpimies, President and CEO:
“The restructuring of the Group has now been completed and we concentrate on
developing our core business Exel Composites. The effects of the restructuring
program can be seen in the profit and cash flow development of the past quarter.
However, we are not satisfied with the current profitability and continue to
focus on improving the operating margins and to drive more efficient use of
working capital. A cost reduction program has been reinforced to restore
profitability to satisfactory levels.
The pultrusion market is affected by a global financial crisis. The magnitude of
the impact on our customer base is still difficult to estimate.
As disclosed in the second quarter interim report Exel expects the Group´s
profit before taxes for the full year to be negative. Due to the present
challenging market conditions, the fourth quarter profit before taxes could also
be negative.”
CONSOLIDATED KEY FIGURES, EUR million
(unaudited)
--------------------------------------------------------------------------------
| | 1.7. - | 1.7. - | | 1.1. - | 1.1. | | 1.1. - |
| | | | | | - | | |
--------------------------------------------------------------------------------
| | 30.9. | 30.9. | Change | 30.9. | 30.9. | Change | 31.12. |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 23.9 | 27.9 | -14.3 | 72.8 | 85.4 | -14.7 | 113.5 |
--------------------------------------------------------------------------------
| Operating | 2.5 | -2.1 | 219.9 | -1.8 | 4.1 | 143.8 | 4.8 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 10.4 | -7.4 | | -2.5 | 4.8 | | 4.2 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 1.1 | -2.9 | 138.9 | -4.0 | 2.7 | 245.1 | 2.4 |
| taxes | 0.9 | -2.2 | 138.5 | -2.8 | 2.0 | 238.1 | 2.0 |
| Profit for | | | | | | | |
| the period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | 18.3 | 23.8 | -23.1 | 18.3 | 23.8 | -23.1 | 23.5 |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Net | 26.4 | 32.8 | -19.7 | 26.4 | 32.8 | -19.7 | 27.9 |
| interest-bear | | | | | | | |
| ing | | | | | | | |
| liabilities | | | | | | | |
--------------------------------------------------------------------------------
| Capital | 50.8 | 61.1 | -16.9 | 50.8 | 61.1 | -16.9 | 56.3 |
| employed | | | | | | | |
--------------------------------------------------------------------------------
| Return on | 19.2 | -35.3 | | -18.0 | 11.3 | | 8.4 |
| equity, % | | | | | | | |
--------------------------------------------------------------------------------
| Return on | 12.0 | -17.0 | | -6.8 | 8.9 | | 7.3 |
| capital | | | | | | | |
| employed, % | | | | | | | |
--------------------------------------------------------------------------------
| Equity ratio, | 26.8 | 28.8 | | 26.8 | 28.8 | | 31.3 |
| % | | | | | | | |
--------------------------------------------------------------------------------
| Net gearing, | 144.3 | 138.1 | | 144.3 | 138.1 | | 118.4 |
| % | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.07 | -0.19 | | -0.24 | 0.17 | | 0.17 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.07 | -0.19 | | -0.24 | 0.17 | | 0.17 |
| share, EUR, | | | | | | | |
| diluted | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 1.54 | 2.00 | | 1.54 | 2.00 | | 1.98 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
IFRS REPORTING
Exel has applied IFRS reporting since the beginning of 2005. This interim report
has been prepared in accordance with the recognition and measurement principles
of IFRS, which are the same as in the 2007 financial statements. This report
qualifies all IAS34, Interim Financial Reporting, standard's requirements. The
disclosed information is unaudited.
FINANCIAL PERFORMANCE
Net sales in July-September 2008 were EUR 23.9 (27.9) million. Exel's operating
profit for July-September 2008 increased to EUR 2.5 million, compared to EUR
-2.1 million the corresponding period last year.
Net sales in January-September 2008 decreased by 14.7 per cent to EUR 72.8
(85.4) million, compared to the corresponding period in 2007. The weaker sales
were primarily a result of the divestment of Exel Sports Brands' Outdoor
business, the divestment of the Plastics business in Germany in May 2007 and
weaker market conditions in Exel Composites.
Exel's operating profit for the first nine months decreased to EUR -1.8 (4.1)
million, compared to the corresponding period last year. Operating profit as a
percentage of net sales was -2.5 (4.8) per cent.
The Group's net financial expenses in the first nine months were EUR 2.2 (1.4)
million. Non-realized currency losses due to weakening AUD were the main reason
behind the increase as the internal debt for the acquisition of Pacific
Composites Pty. Ltd. in February 2006 was denominated in AUD. The Group's profit
before taxes was EUR -4.0 (2.7) million and profit after taxes EUR -2.8 (2.0)
million. Third quarter profit before taxes was EUR 1.1 (-2.9) million.
Earnings per share were EUR -0.24 (0.17). Return on capital employed was -6.8
(8.9) per cent.
BALANCE SHEET
The Group's consolidated total assets at the end of the reporting period were
EUR 68.1 (82.7) million. Equity was EUR 18.3 (23.8) million and equity ratio
26.8 (28.8) per cent. The changes were mainly a result of a decrease in current
assets, due to the divestment of Exel Sports Brands' Outdoor business and a
rationalization project aiming at more efficient use of operating working
capital.
The parent company´s share premium fund amounting to EUR 8.5 million was
transferred to invested non-restricted equity fund according to the AGM
resolution.
CASH FLOW AND FINANCIAL POSITION
Cash flow from business operations for the first nine months 2008 was EUR +4.9
(-2.9) million and in the third quarter EUR +4.5 (-0.7) million.
At the end of the reporting period the Group's liquid assets stood at EUR 6.1
(5.0) million, interest-bearing liabilities at EUR 32.5 (37.8) million, of which
short-term liabilities accounted for EUR 9.4 (16.4) million. Exel refinanced
part of its loans at the end of June to increase the loan maturity period. Net
interest-bearing liabilities were EUR 26.4 (32.8) million and the net gearing
ratio was 144.3 (138.1) per cent.
CAPITAL EXPENDITURE AND DEPRECIATION
The capital expenditure on fixed assets during the first nine months 2008
amounted to EUR 1.0 (1.7) million.
Total depreciation of non-current assets during the period under review amounted
to EUR 3.1 (3.8) million.
PERSONNEL
The number of Exel Group employees on 30 September, 2008 was 487 (554), of whom
220 (233) worked in Finland and 267 (321) in other countries. The average number
of personnel during the reporting period was 542 (566). The decrease both in
Finland and abroad is mainly due to the divestment of Exel Sports Brands'
Outdoor business and Nordic Sports Products (Beijing) Co., Ltd.
CHANGES IN THE GROUP STRUCTURE
The shares of Exel Sports Brands' Chinese subsidiary Nordic Sports Products
(Beijing) Co., Ltd. were sold to ESB Sports Oy as a part of the restructuring of
Exel Sports Brands business. The company employed 4 persons. This transaction
did not have material effect on the profitability or the balance sheet of the
Exel Group.
BUSINESS SEGMENTS
The Group's operations are divided into two primary business segments: Exel
Composites and Exel Sports Brands.
Exel Composites
Exel Composites' key financial figures for the reporting period were as follows:
--------------------------------------------------------------------------------
| | 1.7.- | 1.7. - | Change | 1.1. - | 1.1.- | Change | 1.1.- |
--------------------------------------------------------------------------------
| | 30.9. | 30.9. | % | 30.9. | 30.9. | % | 31.12. |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 | | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 21.4 | 25.3 | -15.2 | 66.1 | 79.5 | -16.9 | 104.3 |
--------------------------------------------------------------------------------
| Operating | 1.7 | 2.6 | -35.1 | 6.3 | 11.3 | -44.0 | 15.2 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 7.8 | 10.1 | | 9.6 | 14.2 | | 14.6 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Average | 465 | 500 | -7.0 | 486 | 502 | -3.2 | 500 |
| number of | | | | | | | |
| personnel | | | | | | | |
--------------------------------------------------------------------------------
Net sales for Exel Composites in the third quarter of 2008 decreased by 15.2 per
cent to EUR 21.4 (25.3) million from the corresponding period previous year, and
cumulatively the first nine months sales were EUR 66.1 (79.5) million. The
decrease in sales was primarily a result of procurement model change in the wind
energy segment and the divestment of the Plastics business in Germany. In
addition, sales to Exel Sports Oy declined during the first nine months.
The company was also faced with weaker market conditions in the segments that
are facing difficult economic conditions globally, i.e. in transportation and
building and construction. On the other hand, sales in new energy applications
and telecommunication segment were strong.
Costs, e.g. energy and raw materials were increasing. Exel was able to transfer
a part of the increase in product prices. The company continues to increase the
product prices to compensate for the higher costs. A credit loss provision of
EUR 0.3 million was made due to a customer insolvency.
Operating profit during the first nine months was EUR 6.3 (11.3) million
including EUR -1.1 (-0.7) million of non-recurring items. The reduction in sales
had a negative impact on the operating profit of Exel Composites. Operating
profit during the third quarter was EUR 1.7 million, compared to EUR 2.6
million, including EUR -0.7 million non-recurring items, the corresponding
period last year.
Exel Sports Brands
Exel Sports Brands' key financial figures for the reporting period were as
follows:
--------------------------------------------------------------------------------
| | 1.7.- | 1.7. - | Chang | 1.1. - | 1.1.- | Change | 1.1.- |
| | | | e | | | | |
--------------------------------------------------------------------------------
| | 30.9. | 30.9. | % | 30.9. | 30.9. | % | 31.12. |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 | | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 2.8 | 3.8 | -26.5 | 8.4 | 9.7 | -13.8 | 13.6 |
--------------------------------------------------------------------------------
| Operating | 0.7 | -5.2 | 113.6 | -8.2 | -7.6 | -7.6 | -10.7 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 25.1 | -135.4 | | -98.2 | -78.7 | | -78.1 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Average | 20 | 48 | -58.3 | 38 | 49 | -22.4 | 49 |
| number of | | | | | | | |
| personnel | | | | | | | |
--------------------------------------------------------------------------------
The net sales of Exel Sports Brands in the third quarter of 2008 decreased by
26.5 per cent to EUR 2.8 (3.8) million and cumulatively for the first nine
months sales were EUR 8.4 (9.7) million. Starting from June 1, 2008 sales of
Exel Sports Oy consist only of floorball products. Exel concentrates now on
reinforcing and streamlining the floorball business and improving its
profitability.
Exel Sports Brands' operating profit was EUR 0.7 including EUR +0.2 million of
non-recurring items, compared to EUR -5.2 million, including EUR -3.5 million
non-recurring items, in the third quarter. Streamlining of Exel Sports Brands
continued during the third quarter and was implemented to a large extent
including the sale of shares of the China-based Nordic Sports Products (Beijing)
Co. Ltd. to ESB Sports Oy in September 2008. Exel Sports Oy has also ceased to
import Björn Däehlie skiing textiles, Lars Kjus alpine skiing textiles, Tubbs
snowshoes and Swany gloves.
SHARES AND SHARE CAPITAL
At the end of September, Exel's share capital was EUR 2,141,431.74 and the
number of shares was 11,896,843. There were no changes in the share capital
during the review period.
Based on the closing price on 30 September, 2008, the market capitalization
totaled EUR 82.4 (182.0) million. During the reporting period 821,408
(4,223,618) shares were traded, accounting for 6.9 (35.5) per cent of the
average number of shares outstanding. The value of the share turnover in the
first nine months was EUR 7.6 (60.7) million.
The highest share quotation was EUR 12.20 (17.45) and the lowest EUR 6.53
(12.50). The share price closed at EUR 6.93 (15.30). The average share price
during the review period was EUR 9.08 (14.36).
Own shares
Exel did not hold any own shares at the end of the period under review.
Authorizations
The Annual General Meeting held on 10 April, 2008 authorized the Board of
Directors of Exel to acquire the Company´s own shares and to issue and convey
new shares. By the end of September 2008, the Board of Directors had not used
these authorizations. The authorizations are valid until 10 April, 2009.
SHAREHOLDERS
Exel had a total of 1,680 shareholders on September 30, 2008.
Exel did not receive any flagging notifications during the first nine months of
2008.
EVENTS AFTER THE REPORTING PERIOD
Exel starts co-determination process in Exel Sports Oy and Exel Sports Sweden AB
In order to improve its profitability Exel will start co-determination
negotiations at its Finnish subsidiary Exel Sports Oy and its Swedish subsidiary
Exel Sports Sweden AB (formerly International Gateway AB). The co-determination
negotiations affect Exel Sports Oy's personnel as a whole both in Finland and in
Sweden.
Temporary lay-offs at Mäntyharju factory
In addition, temporary lay-offs will take place at the Mäntyharju factory, which
is a part of Exel Composites. The lay-offs affect a maximum of 12 non-salaried
employees. They will start on 13 November, 2008 and end at the latest on 28
February, 2009.
A separate stock exchange release regarding the above has been given today 30
October, 2008 at 11.00 am.
MAJOR NEAR-TERM RISKS AND UNCERTAINTIES
The most significant near-term business risks are related to market demand in
certain market segments of Exel Composites, such as building and construction,
telecommunication and wind energy. Raw material price, energy cost and other
cost increases may put pressure on profitability. Currency rate changes,
especially the weakening AUD, and further intensified price competition may also
have a negative effect on the result. The poor availability of bank financing
may weaken the demand in Exel's market and may increase the credit loss risks
and have an effect on the Exel Group.
OUTLOOK FOR 2008
The pultrusion market is affected by the worldwide business slow-down. A
weakened demand has been observed, especially in the building and construction
and transportation segments. Increased price competition and higher energy and
raw-material costs are all putting pressure on profitability. The Group has a
sharp focus on its core business, namely Exel Composites, and is constantly
developing new applications to capture growth opportunities within the advanced
composites industry. A cost reduction program has been reinforced to restore
profitability to satisfactory levels. As disclosed in the second quarter interim
report Exel expects the Group´s profit before taxes for the full year to be
negative. Due to the present challenging market conditions, the fourth quarter
profit before taxes could also be negative.
Vantaa, 30 October 2008
EXEL OYJ Vesa Korpimies
Board of Directors President and CEO
Further information:
Vesa Korpimies, President and CEO, tel. +358 50 590 6754, or email
vesa.korpimies@exel.net
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Main news media
www.exel.net
Exel is a technology company which designs, manufactures and markets composite
profiles and tubes for industrial applications and sports equipment.
The personnel´s expertise and high level of technology play a major role in
Exel´s operations. The core of the operations is based on proprietary,
internally developed composite technology, product range based on it and the
domination of selected market segments with a strong quality and brand image.
The Company´s growth is based on permanent search of new applications and
development in co-operation with customers. Exel concentrates on niche segments
and on profitable growth. Exel's share is listed in the Small Cap segment of the
NASDAQ OMX Helsinki Ltd.
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
--------------------------------------------------------------------------------
| | 1.7.-3 | 1.7.-30 | Change | 1.1.-30 | 1.1-30. | Change | 1.1.-3 |
| | 0.9. | .9. | | .9. | 9. | | 1.12. |
--------------------------------------------------------------------------------
| | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 23,923 | 27,912 | -14.3 | 72,843 | 85,430 | -14.7 | 113,48 |
| | | | | | | | 9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | 7 | 276 | -97.5 | 50 | 732 | -93.2 | 854 |
| operating | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Operating | -20,28 | -28,563 | 29.0 | -71,546 | -78,209 | 8.5 | -103,4 |
| expenses | 1 | | | | | | 45 |
--------------------------------------------------------------------------------
| Depreciati | -1,157 | -1,704 | 32.1 | -3,147 | -3,845 | 18.2 | -6,118 |
| on and | | | | | | | |
| impairment | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 2,492 | -2,079 | 219.9 | -1,800 | 4,109 | 143.8 | 4,780 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net | -1,357 | -842 | -61.2 | -2,170 | -1,371 | -58.3 | -2,360 |
| financial | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit | 1,135 | -2,921 | 138.9 | -3,971 | 2,737 | 245.1 | 2,420 |
| before tax | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income | -285 | 714 | 139.9 | 1,148 | -693 | 265.7 | -410 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/los | 850 | -2,206 | 138.5 | -2,823 | 2,044 | 238.1 | 2,010 |
| s for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 850 | -2,206 | | -2,823 | 2,044 | | 2,010 |
| holders of | | | | | | | |
| the parent | | | | | | | |
| company | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 0 | | 0 | 0 | | 0 |
| interest | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings | 0.07 | -0.19 | | -0.24 | 0.17 | | 0.17 |
| per share, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings | 0.07 | -0.19 | | -0.24 | 0.17 | | 0.17 |
| per share, | | | | | | | |
| EUR, | | | | | | | |
| diluted | | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| EUR thousand | 30.9.2008 | 30.9.2007 | Change | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Goodwill | 9,224 | 10,091 | -867 | 9,627 |
--------------------------------------------------------------------------------
| Other intangible assets | 2,772 | 3,446 | -674 | 2,689 |
--------------------------------------------------------------------------------
| Tangible assets | 12,271 | 15,333 | -3,062 | 14,796 |
--------------------------------------------------------------------------------
| Deferred tax assets | 4,447 | 3,920 | 527 | 2,521 |
--------------------------------------------------------------------------------
| Other non-current | 70 | 77 | -7 | 76 |
| assets | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 28,783 | 32,866 | -4,083 | 29,710 |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 16,470 | 22,136 | -5,666 | 22,155 |
--------------------------------------------------------------------------------
| Trade and other | 16,777 | 22,443 | -5,666 | 18,426 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Other liquid assets | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Cash at bank and in | 6,115 | 4,995 | 1,120 | 4,901 |
| hand | | | | |
--------------------------------------------------------------------------------
| Current assets total | 39,362 | 49,574 | -10,212 | 45,482 |
--------------------------------------------------------------------------------
| Non-current assets held | 0 | 214 | -214 | 0 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Total assets | 68,146 | 82,654 | -14,508 | 75,192 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Shareholders´ equity | | | | |
--------------------------------------------------------------------------------
| Share capital | 2,141 | 2,141 | 0 | 2,141 |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Restricted equity fund | 5 | 8,492 | -8,487 | 8,492 |
--------------------------------------------------------------------------------
| Non-restricted equity | 8,488 | 0 | 8,488 | 0 |
| fund | | | | |
--------------------------------------------------------------------------------
| Retained earnings | 10,466 | 11,093 | -627 | 10,890 |
--------------------------------------------------------------------------------
| Profit for the period | -2,823 | 2,044 | -4,867 | 2,010 |
--------------------------------------------------------------------------------
| Equity attributable to | 18,277 | 23,771 | -5,493 | 23,533 |
| equity holders of the | | | | |
| parent company | | | | |
--------------------------------------------------------------------------------
| Minority share | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total equity | 18,277 | 23,771 | -5,494 | 23,533 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 23,070 | 21,480 | 1,590 | 21,755 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 927 | 647 | 280 | 753 |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 9,411 | 16,353 | -6,942 | 11,008 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other | 16,461 | 20,403 | -3,942 | 17,799 |
| non-current liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 49,869 | 58,883 | -9,014 | 51,658 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | 68,146 | 82,654 | -14,508 | 75,192 |
| liabilities | | | | |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| EUR | Share | Share | Share | Non-rest | Retaine | Minori | Total |
| thousand | Capital | Issue | Premiu | ricted | d | ty | |
| | | | m | Equity | Earning | Intere | |
| | | | Reserv | Fund | s | st | |
| | | | e | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2,141 | 0 | 8,492 | | 13,729 | 0 | 24,363 |
| at 1 | | | | | | | |
| January | | | | | | | |
| 2007 | | | | | | | |
--------------------------------------------------------------------------------
| Share | 0 | 0 | 0 | | 0 | 0 | 0 |
| issue | | | | | | | |
--------------------------------------------------------------------------------
| Exchange | 0 | 0 | 0 | | -257 | 0 | -257 |
| rate | | | | | | | |
| differenc | | | | | | | |
| es | | | | | | | |
--------------------------------------------------------------------------------
| Other | 0 | 0 | 0 | | 0 | 0 | 0 |
| items | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -2,379 | 0 | -2,379 |
--------------------------------------------------------------------------------
| Profit | | | | | 2,044 | 0 | 2,044 |
| for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2,141 | 0 | 8,492 | | 13,138 | 0 | 23,771 |
| at 30 | | | | | | | |
| September | | | | | | | |
| 2007 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2,141 | 0 | 8,492 | 0 | 12,900 | 0 | 23,533 |
| at 1st | | | | | | | |
| January | | | | | | | |
| 2008 | | | | | | | |
--------------------------------------------------------------------------------
| Share | 0 | 0 | 0 | | 0 | 0 | 0 |
| issue | | | | | | | |
--------------------------------------------------------------------------------
| Exchange | 0 | 0 | 0 | | -55 | 0 | -55 |
| rate | | | | | | | |
| differenc | | | | | | | |
| es | | | | | | | |
--------------------------------------------------------------------------------
| Other | 0 | 0 | -8,488 | 8,488 | | 0 | 0 |
| items | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -2,379 | 0 | -2,379 |
--------------------------------------------------------------------------------
| Profit | | | | | -2,823 | 0 | -2,823 |
| for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2,141 | 0 | 5 | 8,488 | 7,643 | 0 | 18,277 |
| at 30 | | | | | | | |
| September | | | | | | | |
| 2008 | | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change | 1.1. - |
| | 30.9. | 30.9. | | 31.12. |
| | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Operating Activities | | | |
--------------------------------------------------------------------------------
| Profit for the period | -2,823 | 2,044 | -4,867 | 2,010 |
--------------------------------------------------------------------------------
| Adjustments | 3,930 | 6,383 | -2,453 | 9,676 |
--------------------------------------------------------------------------------
| Change in working capital | 6,770 | -6,725 | 13,495 | -5,903 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow Generated by | 7,877 | 1,702 | 6,175 | 5,783 |
| Operations | | | | |
--------------------------------------------------------------------------------
| Interest paid | -1,454 | -1,467 | 13 | -1,687 |
--------------------------------------------------------------------------------
| Interest received | 93 | 88 | 5 | 137 |
--------------------------------------------------------------------------------
| Other financial items | -251 | -232 | -19 | -388 |
--------------------------------------------------------------------------------
| Income taxes paid | -1,360 | -3,024 | 1,664 | -1,250 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Cash Flow from Operating | 4,905 | -2,933 | 7,838 | 2,595 |
| Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing Activities | | | |
--------------------------------------------------------------------------------
| Acquisitions | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Disposal of business | 25 | 672 | -647 | 672 |
--------------------------------------------------------------------------------
| Capital expenditure | -979 | -1,745 | 766 | -2,469 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed | 60 | 1,306 | -1,246 | 1,306 |
| assets | | | | |
--------------------------------------------------------------------------------
| Other cash flow from | 0 | 0 | 0 | 0 |
| investing activities | | | | |
--------------------------------------------------------------------------------
| Cash Flow from Investing | -894 | 233 | -1,127 | -491 |
| Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Financing | | | | |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from long-term | 10,000 | 0 | 10,000 | 0 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Instalments of long-term | -8,315 | -1,600 | -6,715 | -1,600 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Change in short-term loans | -1,811 | 5,760 | -7,571 | 958 |
--------------------------------------------------------------------------------
| Installments of finance | -292 | -285 | -7 | -381 |
| lease liabilities | | | | |
--------------------------------------------------------------------------------
| Dividends paid | -2,379 | -2,379 | 0 | -2,379 |
--------------------------------------------------------------------------------
| Net Cash Flow from Financing | -2,797 | 1,496 | -4,293 | -3,402 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in Liquid Funds | 1,214 | -1,204 | 2,418 | -1,298 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds in the | 4,901 | 6,199 | -1,298 | 6,199 |
| beginning of period | | | | |
--------------------------------------------------------------------------------
| Change in liquid funds | 1,214 | -1,204 | 2,418 | -1,298 |
--------------------------------------------------------------------------------
| Liquid funds at the end of | 6,115 | 4,995 | 1,120 | 4,901 |
| period | | | | |
--------------------------------------------------------------------------------
QUARTERLY KEY FIGURES
--------------------------------------------------------------------------------
| EUR thousand | III/ | II/ | I/ | IV/ | III/ | II/ | I/ |
| | 2008 | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales by | | | | | | | |
| segment | | | | | | | |
--------------------------------------------------------------------------------
| Exel | 21,415 | 22,933 | 21,75 | 24,728 | 25,259 | 27,577 | 26,697 |
| Composites | | | 7 | | | | |
--------------------------------------------------------------------------------
| Exel Sports | 2,812 | 2,393 | 3,171 | 3,914 | 3,827 | 2,166 | 3,727 |
| Brands | | | | | | | |
--------------------------------------------------------------------------------
| Intra Group | -304 | -484 | -850 | -584 | -1,173 | -1,022 | -1,628 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Net sales, | 23,923 | 24,842 | 24,07 | 28,058 | 27,912 | 28,721 | 28,797 |
| total | | | 8 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | | | | | | | |
| profit by | | | | | | | |
| segment | | | | | | | |
--------------------------------------------------------------------------------
| Exel | 1,660 | 1,782 | 2,890 | 3,853 | 2,556 | 4,478 | 4,283 |
| Composites | | | | | | | |
--------------------------------------------------------------------------------
| Exel Sports | 707 | -7,576 | -1,35 | -3,005 | -5,182 | -1,760 | -704 |
| Brands | | | 7 | | | | |
--------------------------------------------------------------------------------
| Group items | 125 | 165 | -196 | -177 | 547 | -56 | -53 |
| and | | | | | | | |
| eliminations | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 2,492 | -5,629 | 1,337 | 672 | -2,079 | 2,662 | 3,526 |
| profit, total | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial | -1,357 | 554 | -1,36 | -989 | -842 | -190 | -340 |
| items | | | 8 | | | | |
--------------------------------------------------------------------------------
| Profit before | 1,135 | -5,075 | -31 | -317 | -2,921 | 2,472 | 3,186 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Income taxes | -285 | 1,495 | -62 | 283 | 714 | -526 | -882 |
--------------------------------------------------------------------------------
| Profit for | 850 | -3,580 | -92 | -34 | -2,206 | 1,946 | -2,304 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.07 | -0.30 | -0.01 | 0.00 | 0.19 | 0.16 | 0.19 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.07 | -0.30 | -0.01 | 0.00 | 0.19 | 0.16 | 0.19 |
| share, EUR, | | | | | | | |
| diluted | | | | | | | |
--------------------------------------------------------------------------------
| Average | | | | | | | |
| number of | | | | | | | |
| shares, | | | | | | | |
| undiluted, | | | | | | | |
--------------------------------------------------------------------------------
| 1,000 shares | 11,897 | 11,897 | 11,89 | 11,897 | 11,897 | 11,897 | 11,897 |
| | | | 7 | | | | |
--------------------------------------------------------------------------------
| Average | | | | | | | |
| number of | | | | | | | |
| shares, | | | | | | | |
| diluted, | | | | | | | |
--------------------------------------------------------------------------------
| 1,000 shares | 11,897 | 11,897 | 11,89 | 11,897 | 11,897 | 11,897 | 11,897 |
| | | | 7 | | | | |
--------------------------------------------------------------------------------
| Average | 499 | 556 | 570 | 574 | 569 | 566 | 576 |
| number of | | | | | | | |
| personnel | | | | | | | |
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------
| EUR thousand | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On own behalf | 2,783 | 2,953 | 2,783 |
--------------------------------------------------------------------------------
| Corporate mortgages | 12,500 | 12,500 | 12,500 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Lease liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| - in next 12 months | 424 | 496 | 496 |
--------------------------------------------------------------------------------
| - in next 1-5 years | 1,577 | 2,281 | 2,205 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | 165 | 890 | 876 |
--------------------------------------------------------------------------------
DERIVATIVE FINANCIAL INSTRUMENTS
--------------------------------------------------------------------------------
| Nominal values | 30.9.2008 | 30.9.2007 | 31.12.2007 |
| EUR thousand | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange derivatives | | | |
--------------------------------------------------------------------------------
| Forward contracts | 1,727 | 8,717 | 8,372 |
--------------------------------------------------------------------------------
| Purchased currency options | 1,418 | 3,650 | 5,078 |
--------------------------------------------------------------------------------
| Sold currency options | 709 | 3,617 | 4,297 |
--------------------------------------------------------------------------------
| Currency swaps | 0 | 952 | 1,617 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate derivatives | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | 10,167 | 333 | 333 |
--------------------------------------------------------------------------------
| Purchased interest rate options | 3,500 | 4,667 | 4,667 |
--------------------------------------------------------------------------------
CONSOLIDATED KEY FIGURES
--------------------------------------------------------------------------------
| EUR thousand | 1.1.- | 1.1. - | Change, % | 1.1. - |
| | 30.9. | 30.9. | | 31.12. |
| | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 72,843 | 85,430 | -14.7 | 113,489 |
--------------------------------------------------------------------------------
| Operating profit | -1,800 | 4,109 | -143.8 | 4,780 |
--------------------------------------------------------------------------------
| % of net sales | -2.5 | 4.8 | | 4.2 |
--------------------------------------------------------------------------------
| Profit before tax | -3,971 | 2,737 | -245.1 | 2,420 |
--------------------------------------------------------------------------------
| % of net sales | -5.5 | 3.2 | | 2.1 |
--------------------------------------------------------------------------------
| Profit for the period | -2,823 | 2,044 | -238.1 | 2,010 |
--------------------------------------------------------------------------------
| % of net sales | -3.9 | 2.4 | | 1.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ equity | 18,277 | 23,771 | -23.1 | 23,533 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 32,481 | 37,833 | -14.1 | 32,762 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 6,115 | 4,765 | 28.3 | 4,901 |
--------------------------------------------------------------------------------
| Net interest-bearing | 26,366 | 32,838 | -19.7 | 27,861 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Capital employed | 50,758 | 61,064 | -16.9 | 56,295 |
--------------------------------------------------------------------------------
| Return on equity, % | -18.0 | 11.3 | | 8.4 |
--------------------------------------------------------------------------------
| Return on capital employed, | -6.8 | 8.9 | | 7.3 |
| % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 26.8 | 28.8 | | 31.3 |
--------------------------------------------------------------------------------
| Net gearing, % | 144.3 | 138.1 | | 118.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | 979 | 1,745 | -43.9 | 2,469 |
--------------------------------------------------------------------------------
| % of sales | 1.3 | 2.0 | | 2.2 |
--------------------------------------------------------------------------------
| Research and development | 1,589 | 2,196 | -27.6 | 2,824 |
| costs | | | | |
--------------------------------------------------------------------------------
| % of net sales | 2.2 | 2.6 | | 2.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order stock | 12,292 | 14,011 | -12.3 | 12,889 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | -0.24 | 0.17 | | 0.17 |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | -0.24 | 0.17 | | 0.17 |
| diluted | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.54 | 2.00 | | 1.98 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares | | | | |
--------------------------------------------------------------------------------
| - cumulative | 11,897 | 11,897 | | 11,830 |
--------------------------------------------------------------------------------
| - cumulative, diluted | 11,897 | 11,8987 | | 11,847 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of employees | 542 | 571 | -5.1 | 600 |
--------------------------------------------------------------------------------
