WULFF GROUP PLC
FINANCIAL STATEMENTS RELEASE February 5, 2013 at 9:00 A.M.
WULFF GROUP PLC’S FINANCIAL STATEMENTS FOR JANUARY 1 – DECEMBER 31, 2012
Net Sales and Operating Profit Decreased, Earnings per share and Cash Flow Improved
- In 2012, the Group’s net sales decreased by 9 percentages down to EUR 90.2 million from last year’s EUR 99.1 million. The last quarter’s net sales were EUR 25.1 million (EUR 27.5 million).
- In 2012, EBITDA was EUR 2.27 million (EUR 2.69 million) being 2.5 percentages (2.7 %) of net sales. In the last quarter, EBITDA was EUR 0.96 million (EUR 1.08 million) being 3.8 percentages (3.9 %) of net sales.
- In 2012, the operating profit (EBIT) was EUR 1.13 (EUR 1.60 million) being 1.3 percentages (1.6 %) of net sales. In the last quarter, EBIT was EUR 0.64 million (EUR 0.79 million) being 2.5 percentages (2.9 %) of net sales.
- The net profit after taxes rose up to a profit of EUR 0.89 million (EUR 0.82 million) in 2012 and totalled EUR 0.49 million (EUR 0.56 million) in the last quarter.
- Earnings per share (EPS) rose up to EUR 0.11 (EUR 0.10) in 2012 and were EUR 0.06 (EUR 0.07) in the last quarter.
- In 2012, the Group’s equity-to-assets ratio increased to 44.3 percentages (December 31, 2011: 40.3 %).
- The Board of Directors’ dividend proposal is EUR 0.08 per share (EUR 0.07).
GROUP’S NET SALES AND RESULT PERFORMANCE
In 2012, the Group’s net sales decreased by 9 percentages down to EUR 90.2 million from last year’s EUR 99.1 million. The last quarter’s net sales were EUR 25.1 million (EUR 27.5 million).The general economic situation and the decrease in the products’ demand have led to the decrease in net sales. The reorganisations in our corporate customers have decreased the demand for the Group’s products. For example, the personnel lay-offs affect Wulff’s products’ demand directly.
In 2012, EBITDA was EUR 2.27 million (EUR 2.69 million) being 2.5 percentages (2.7 %) of net sales. In the last quarter, EBITDA was EUR 0.96 million (EUR 1.08 million) being 3.8 percentages (3.9 %) of net sales. In 2012, the operating profit (EBIT) was EUR 1.13 (EUR 1.60 million) being 1.3 percentages (1.6 %) of net sales. In the last quarter, EBIT was EUR 0.64 million (EUR 0.79 million) being 2.5 percentages (2.9 %) of net sales.
In spite of the challenging market situation Wulff managed to keep the result at a reasonable level. Among the Group companies, which managed to improve their profitability, were Wulff Naxor, which provides the construction sector with a wide range of products; the international fair service expert Wulff Entre as well as the office supplies contract customers’ businesses Wulff Supplies in Scandinavia and Wulff Torkkelin Paperi in Lahti, together with Wulff Looks offering business promotional products. The general economic situation affects especially the demand of business and promotional gifts as well as office supplies. The result was also affected by the non-recurring expenses for the reorganisation of Finland’s business gift companies and the direct sales in Scandinavia. The Group continues to review its expense structure and optimise its operations to improve the profitability of its businesses.
Wulff Group’s CEO Heikki Vienola: In 2012, we have strengthened and developed our sales channels, entire service range and the Wulff brand according to our strategy. Our customers have wished for more opportunities to centralize all their office supply purchases. They also want more eco-friendly services than before. Therefore we have placed added emphasis on developing our operations to make them more customer-oriented and environmentally friendly. Wulff’s solutions offer the customers more cost savings and efficient purchase management. We offer our customers the opportunity to do business with Wulff in the most convenient channel, whether it is the customer-specific service model, private meetings, a webstore or a street-level shop. I believe that focusing on profitable business and increasing operational efficiency according to our strategy, will affect the Group’s result in a positive way in 2013. Our result is also affected by our success in being the front runner in the field of office supplies. I believe we have the abilities to bring entirely new solutions for our customers to develop their operations. It takes will, skill and the right resources to be a front runner – Wulff and our employees have these all. Our theme for 2013 is “Professional care for customers and personnel alike”. For our customers it means that they get the best private meetings and the most advanced products and services. For our employees it means that we manage our processes close and give a lot of feedback.”
The Group’s financial situation remained good the whole year 2012. In 2012, the financial income and expenses totalled (net) EUR -0.14 million (EUR -0.46 million) including dividend income of EUR 0.02 million (EUR 0.04 million), interest expenses of EUR 0.23 million (EUR 0.34 million) and mainly currency-related other financial items (net) EUR +0.06 million (EUR -0.15 million). The last quarter’s financial income and expenses netted EUR -0.11 million (EUR -0.02 million).
In 2012, the result before taxes was EUR 0.99 million (EUR 1.14 million) and the net profit after taxes was EUR 0.89 million (EUR 0.82 million). The last quarter’s result before taxes was EUR 0.53 million (EUR 0.76 million) and net profit after taxes was EUR 0.49 million (EUR 0.56 million).
Due to the positive movement in the financial items, the earnings per share (EPS) rose up to EUR 0.11 (EUR 0.10) in 2012 and were EUR 0.06 (EUR 0.07) in the last quarter.
Return on investment (ROI) was 4.67 percentage (5.45 %) in 2012 and 2.10 percentage (3.01 %) in the last quarter. Return on equity (ROE) was 5.11 percentage (4.82 %) in 2012 and 2.82 percentage (3.35 %) in the last quarter.
CONTRACT CUSTOMERS DIVISION
The Contract Customers Division is the customer’s comprehensive partner in the field of office supplies, IT supplies, business and promotional gifts as well as international fair services. The division’s net sales were EUR 76.3 million (EUR 82.5 million) in 2012 and EUR 21.2 million (EUR 22.6 million) in the last quarter. The division’s operating profit was EUR 2.04 (EUR 2.14 million) in 2012 and EUR 0.76 million (EUR 0.88 million) in the last quarter.
The general economic situation and the decrease in the products’ demand have led to the decrease in net sales. The Group’s webstore Wulffinkulma.fi has shown good growth and profit increase, and it is an important investment for the future bringing quick results. Wulff has developed the Wulff brand, sales channels and the whole service range, according to the strategy. In August 2012, renewed Wulffinkulma stores were opened in Helsinki and Turku. For the first time, the stores exhibit the Group’s entire product range. In addition to office supplies and business gifts, the stores exhibit Wulff’s Green products and recycling centres. Wulffinkulma stores serve local small and medium-sized corporate customers, entrepreneurs and consumers. In September, Wulff’s service concept in Åland was also renewed. Wulff has received a lot of positive feedback on the new service model. The customers value the broader product range, cost-efficiency as well as their own Swedish-speaking Key Account Manager.
We were able to attract a large number of new contract customers in Scandinavia in 2012. We also have the pleasure to continue doing business with a lot of long-term, major customers. Today almost 50 percent of our net sales come from Scandinavia and our position in the Scandinavian market strengthens constantly. Strålfors Supplies (now Wulff Supplies) acquired in 2009, has been a successful investment in serving our Scandinavian and Pan-Nordic customers.
International fairs increase their status as an even more important business forum. They are also an even more significant part of Wulff Entre’s operations. The Group’s fair and event service company Wulff Entre’s focusing on its core competence, international fair services has been the right solution and it has generated excellent results. Investing in sales and its development has resulted in both stronger customer relationships and an increase in clientele. In 2012, Wulff Entre exports Finnish companies’ know-how to more than 30 countries. Wulff Entre is the market leader in Finland in its field and for over 90 years already there has been a solid trust in Entre’s ability to find the right international venues.
The division’s result is affected by the cycles of the business and promotional gift market: the majority of the products are delivered and the majority of the annual profit is generated in the second and the last quarter of the year. Wulff Group’s business gift companies, Finland’s two oldest business and promotional gift experts, Ibero Liikelahjat Oy and KB-tuote Oy, merged into Wulff Liikelahjat Oy in spring 2012. Wulff Liikelahjat Oy’s goal is to be the biggest and strongest player in Finland’s business gift industry. The merging and development of the Group’s business gift operations brought non-recurring expenses of EUR 0.1 million in the reporting period. According to the Group’s strategy, it is very important to invest in the constant development of services and renew the Group structure when necessary. The company’s new showroom and office premises are located near great transport connections in Ruoholahti, Helsinki.
DIRECT SALES DIVISION
The Direct Sales Division aims to improve its customers’ daily operations with innovative products as well as the industry’s most professional personal and local service. The division’s net sales were EUR 14.0 million (EUR 16.4 million) in 2012 and EUR 4.0 million (EUR 4.7 million) in the last quarter. The operating result totalled EUR -0.04 million (EUR 0.22 million) in 2012 and EUR +0.10 million (EUR 0.08 million) in the last quarter. The result was affected by e.g. the reorganisation costs of the Scandinavian direct sales operations.
The Division’s profitability is improved by concentrating on profitable product and service fields and by optimising the operations’ efficiency. Wulff invests strongly in the development of the product and service range and aims to increase the synergy of the purchasing operations by group wide competitive bidding and cooperation. Unifying the sales support systems and introducing the new CRM program are important investments in the future.
Successful recruiting affects especially the performance of Direct Sales. New sales personnel are being actively recruited by, for example, campaigning in the social media. Wulff’s own introduction and training programmes ensure that every sales person gets both a comprehensive starting training and further education on how to improve one’s own know-how.
FINANCING, INVESTMENTS AND FINANCIAL POSITION
The cash flow from operating activities increased to EUR 3.3 million from last year’s EUR 1.0 million. The cash flow from operating activities was EUR 3.9 million (EUR 4.1 million) in the last quarter. In this industry it is typical that the result and cash flow are generated in the last quarter. A total of EUR 0.6 million less working capital was tied in the inventories than a year ago.
For its fixed asset investments, the Group paid a net of EUR 0.68 million (EUR 0.80 million) in 2012 and EUR 0.12 million (EUR 0.27 million) in the last quarter. Wulff Group Plc paid its shareholders dividends of EUR 0.46 million (EUR 0.33 million) and additionally the subsidiaries’ non-controlling shareholders were paid dividends of EUR 0.07 million (EUR 0.11 million). The Group paid EUR 0.05 million for the acquisitions and disposals of non-controlling interests in Wulff Supplies AB and Wulff Direct AS to the subsidiaries’ key personnel in the first half of 2012. The Group repaid loans of net EUR 1.85 million in 2012, whereas EUR 0.79 million (net) was paid in 2011.
In general, the Group’s cash balance increased by EUR 0.18 million in 2012 (EUR -1.93 million) and EUR 1.62 million (EUR 1.35 million) in the last quarter. The Group’s bank and cash funds totalled EUR 2.46 million in the beginning of the year and EUR 2.75 million in the end of the year.
In 2012, the Group’s Equity-to-assets ratio increased to 44.3 percentages (December 31, 2011: 40.3 %).
Equity attributable to the equity holders of the parent company was EUR 2.51 per share (December 31, 2011: EUR 2.45).
SHARES AND SHARE CAPITAL
Wulff Group Plc’s share is listed on NASDAQ OMX Helsinki in the Small Cap segment under the Industrials sector. The company’s trading code is WUF1V. In the end of the reporting period, the share was valued at EUR 1.77 (EUR 1.99) and the market capitalization of the outstanding shares totalled EUR 11.5 million (EUR 13.0 million).
In 2012, no own shares were reacquired. As a part of the Group’s share-based incentive scheme, Wulff Group granted 5.000 own shares to a key person in February 2012. In the end of 2012, the Group held 85.000 (December 31, 2011: 90.000) own shares representing 1.3 percentage (1.4 %) of the total number and voting rights of Wulff shares. According to the Annual General Meeting’s authorisation on April 23, 2012, the Board of Directors decided in its organizing meeting to continue the acquisition of its own shares, by acquiring a maximum of 300.000 own shares by April 30, 2013.
PERSONNEL
In 2012, the Group’s personnel totalled 343 (365) employees on average. In the end of the year, the Group had 326 (359) employees of which 125 (134) persons were employed in Sweden, Norway, Denmark or Estonia.
The majority, approximately 60 percentages of the Group’s personnel works in sales operations and approximately 40 percentages of the employees work in sales support, logistics and administration. The personnel consists approximately half-and-half of men and women.
In 2012, the Group renewed its training and development programs and e.g. its development discussion practises. Wulff Talent, launched in 2012, is the Group’s own training program for almost 30 key persons. Wulff Talent improves leadership skills and develops new business operations. Wulff has also invested strongly in the development of the superior training. Important personnel themes for 2013, in addition to the company’s values, are professional care for customers and personnel alike and giving feedback actively. The most important goal for these training and education programs is to give the personnel skills that make them better prepared for each customer appointment and to improve everyone’s self-management skills.
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand for office supplies is still affected by the organizations’ personnel lay-offs and cost-saving initiatives made during the economic downturn. The general uncertainty may still continue which will most likely affect the ordering behaviour of some corporate clients.
Although the business gifts are seen increasingly as a part of the corporate communications as a whole and they are utilized also in the off-season, some cost savings may be sought after by decreasing the investments in the brand promotion. The ongoing economic uncertainties impact especially the demand for business and promotional gifts. During the uncertain economic periods, the corporations may also minimize attending fairs.
Half of the Group’s net sales come from other than euro-currency countries. Fluctuation of the currencies affects the Group’s net result and financial position.
BOARD OF DIRECTORS’ DIVIDEND PROPOSAL
The Group’s parent company Wulff Group Plc’s distributable funds totalled EUR 5.43 million. The Group’s net result attributable to the parent company shareholders was EUR 0.72 million (EUR 0.63 million) i.e. EUR 0.11 per share (EUR 0.10 per share). The Board of Directors proposes to the Annual General Meeting that for the financial year 2012, a dividend of EUR 0.08 per share (0.07 per share) totalling EUR 0.52 million (EUR 0.46 million) will be distributed. At the date of the dividend distribution, the own shares held by the Company are not paid any dividend. The remaining distributable funds of EUR 4.91 million will be retained in the shareholders’ equity.
MARKET SITUATION AND FUTURE OUTLOOK
Wulff is the most significant Nordic player in its industry. Wulff’s mission is to help its corporate customers to succeed in their own business by providing them with leading-edge products and services in a way best suitable to them. The markets have been consolidating in the past few years and the Nordic markets are expected to consolidate in the future as well. Wulff is prepared to carry out new strategic acquisitions.
The Group continues taking actions for enhancing profitability. The Group focuses on the growth and development of its sales operations. The Group expects to win new customers and gain growth especially along with Wulff Supplies AB in Scandinavia and with the webstore Wulffinkulma.fi in Finland. No significant market changes are expected in the first half of 2013. The Group aims to improve profitability through own actions. Typically in the industry, the annual profit is made in the last quarter of the year.
FINANCIAL REPORTING AND ANNUAL GENERAL MEETING 2013
Wulff Group Plc will release the following financial reports in 2013:
Annual Report 2012 Week 12/2013
Interim Report, January-March 2013 Wednesday May 8, 2013
Interim Report, January-June 2013 Tuesday August 6, 2013
Interim Report, January-September 2013 Tuesday November 5, 2013
Wulff Group Plc’s Annual General Meeting will be held on Wednesday April 10, 2013. A separate notice to the Annual General Meeting will be published prior to the meeting in 2013.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
| INCOME STATEMENT | IV | IV | I-IV | I-IV |
| EUR 1000 | 2012 | 2011 | 2012 | 2011 |
| Net sales | 25 105 | 27 526 | 90 238 | 99 129 |
| Other operating income | 53 | 24 | 200 | 238 |
| Materials and services | -16 244 | -18 055 | -58 260 | -65 532 |
| Employee benefit expenses | -4 988 | -5 283 | -18 755 | -19 204 |
| Other operating expenses | -2 967 | -3 127 | -11 155 | -11 942 |
| EBITDA | 959 | 1 084 | 2 269 | 2 689 |
| Depreciation and amortization | -322 | -300 | -1 136 | -1 095 |
| Operating profit/loss | 637 | 785 | 1 132 | 1 595 |
| Financial income | 19 | 77 | 272 | 182 |
| Financial expenses | -131 | -98 | -413 | -637 |
| Profit/Loss before taxes | 525 | 763 | 990 | 1 139 |
| Income taxes | -33 | -198 | -100 | -320 |
| Net profit/loss for the period | 492 | 564 | 890 | 819 |
| Attributable to: | ||||
| Equity holders of the parent company | 369 | 468 | 717 | 634 |
| Non-controlling interest | 124 | 96 | 173 | 185 |
| Earnings per share for profit | ||||
| attributable to the equity holders | ||||
| of the parent company: | ||||
| Earnings per share, EUR | 0,06 | 0,07 | 0,11 | 0,10 |
| (diluted = non-diluted) | ||||
| STATEMENT OF COMPREHENSIVE INCOME | IV | IV | I-IV | I-IV |
| EUR 1000 | 2012 | 2011 | 2012 | 2011 |
| Net profit/loss for the period | 492 | 564 | 890 | 819 |
| Other comprehensive income, net of tax | ||||
| Change in translation differences | -47 | 110 | 181 | 34 |
| Fair value changes on available-for-sale investments | -18 | 54 | -22 | -4 |
| Total other comprehensive income | -65 | 164 | 159 | 30 |
| Total comprehensive income for the period | 427 | 728 | 1 049 | 849 |
| Total comprehensive income attributable to: | ||||
| Equity holders of the parent company | 329 | 570 | 839 | 663 |
| Non-controlling interest | 98 | 158 | 210 | 186 |
| STATEMENT OF FINANCIAL POSITION | Dec 31 | Dec 31 | ||
| EUR 1000 | 2012 | 2011 | ||
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 9 546 | 9 467 | ||
| Other intangible assets | 1 308 | 1 355 | ||
| Property, plant and equipment | 1 890 | 2 102 | ||
| Non-current financial assets | ||||
| Interest-bearing financial assets | 43 | 97 | ||
| Non-interest-bearing financial assets | 327 | 367 | ||
| Deferred tax assets | 1 972 | 1 621 | ||
| Total non-current assets | 15 085 | 15 008 | ||
| Current assets | ||||
| Inventories | 10 236 | 10 860 | ||
| Current receivables | ||||
| Interest-bearing receivables | 16 | 51 | ||
| Non-interest-bearing receivables | 13 350 | 16 066 | ||
| Financial assets recognised at fair value through profit/loss | 78 | 56 | ||
| Cash and cash equivalents | 2 749 | 2 464 | ||
| Total current assets | 26 429 | 29 497 | ||
| TOTAL ASSETS | 41 513 | 44 505 | ||
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Equity attributable to the equity holders of the parent company: | ||||
| Share capital | 2 650 | 2 650 | ||
| Share premium fund | 7 662 | 7 662 | ||
| Invested unrestricted equity fund | 223 | 223 | ||
| Retained earnings | 5 849 | 5 461 | ||
| Non-controlling interest | 1 283 | 1 198 | ||
| Total equity | 17 667 | 17 195 | ||
| Non-current liabilities | ||||
| Interest-bearing liabilities | 6 008 | 7 409 | ||
| Deferred tax liabilities | 102 | 128 | ||
| Total non-current liabilities | 6 109 | 7 537 | ||
| Current liabilities | ||||
| Interest-bearing liabilities | 1 685 | 2 135 | ||
| Non-interest-bearing liabilities | 16 052 | 17 639 | ||
| Total current liabilities | 17 737 | 19 773 | ||
| TOTAL EQUITY AND LIABILITIES | 41 513 | 44 505 |
| STATEMENT OF CASH FLOW | IV | IV | I-IV | I-IV |
| EUR 1000 | 2012 | 2011 | 2012 | 2011 |
| Cash flow from operating activities: | ||||
| Cash received from sales | 27 289 | 27 606 | 93 018 | 98 153 |
|
Cash received from other operating income |
27 | 15 | 65 | 130 |
| Cash paid for operating expenses | -23 334 | -23 211 | -89 063 | -96 462 |
| Cash flow from operating activities before financial items and income taxes | 3 982 | 4 411 | 4 020 | 1 821 |
| Interest paid | -20 | -48 | -169 | -278 |
| Interest received | 3 | 29 | 39 | 93 |
| Income taxes paid | -111 | -296 | -592 | -605 |
| Cash flow from operating activities | 3 854 | 4 096 | 3 297 | 1 031 |
| Cash flow from investing activities: | ||||
|
Investments in intangible and tangible assets |
-175 | -265 | -946 | -1 253 |
|
Proceeds from sales of intangible and tangible assets |
53 | 269 | 456 | |
|
Disposal of other non-current investments |
12 | 12 | ||
| Loans granted | -7 | -13 | -12 | |
| Repayments of loans receivable | 8 | 74 | ||
| Cash flow from investing activities | -117 | -265 | -670 | -735 |
| Cash flow from financing activities: | ||||
| Acquisition of own shares | -3 | |||
| Dividends paid | -531 | -433 | ||
| Dividends received | 18 | 20 | 40 | |
|
Payments for subsidiary share acquisitions |
-129 | -982 | ||
|
Payments received for subsidiary share disposals |
81 | |||
|
Cash paid for (received from) short-term investments (net) |
7 | -32 | -56 | |
|
Withdrawals and repayments of short-term loans |
-1 726 | -2 576 | -254 | 173 |
| Withdrawals of long-term loans | 385 | 355 | 385 | |
| Repayments of long-term loans | -396 | -319 | -1 952 | -1 348 |
| Cash flow from financing activities | -2 122 | -2 486 | -2 443 | -2 226 |
| Change in cash and cash equivalents | 1 615 | 1 345 | 184 | -1 930 |
| Cash and cash equivalents at the beginning of the period | 1 135 | 1 155 | 2 464 | 4 379 |
| Translation difference of cash | -1 | -36 | 101 | 15 |
| Cash and cash equivalents at the end of the period | 2 749 | 2 464 | 2 749 | 2 464 |
STATEMENT OF CHANGES IN EQUITY
| EUR 1000 | Equity attributable to equity holders of the parent company | ||||||||
| Fund | |||||||||
| for in | |||||||||
| vested | Non | ||||||||
| non | Trans | Re | cont | ||||||
| Share | re | lation | tai | roll | |||||
| * net of | Share | pre | strict | diffe | ned | ing | |||
| tax | capi | mium | ed | Own | ren | Earn | inte | ||
| tal | fund | equity | shares | ces | ings | Total | rest | TOTAL | |
| Equity on Jan 1, 2011 | 2 650 | 7 662 | 223 | -279 | -149 | 5 549 | 15 656 | 1 158 | 16 814 |
| Net profit / loss for the period | 634 | 634 | 185 | 819 | |||||
| Other comprehens. income*: | |||||||||
| Change in translation diff | 33 | 33 | 1 | 34 | |||||
|
Fair value changes on available- for-sale investments |
-4 | -4 | -4 | ||||||
| Comprehens. income * | 33 | 630 | 663 | 186 | 849 | ||||
| Dividends paid | -325 | -325 | -110 | -435 | |||||
| Treasury share acquisition | -3 | -3 | -3 | ||||||
| Share-based payments | 5 | 5 | 5 | ||||||
| Changes in ownership | 0 | -36 | -36 | ||||||
| Equity on Dec 31, 2011 | 2 650 | 7 662 | 223 | -283 | -116 | 5 860 | 15 996 | 1 198 | 17 195 |
| Equity on Jan 1, 2012 | 2 650 | 7 662 | 223 | -283 | -116 | 5 860 | 15 996 | 1 198 | 17 195 |
| Net profit / loss for the period | 717 | 717 | 173 | 890 | |||||
| Other comprehens. income*: | |||||||||
| Change in translation diff | 144 | 144 | 37 | 181 | |||||
|
Fair value changes on available- for-sale investments |
-22 | -22 | -22 | ||||||
| Comprehens. income * | 144 | 695 | 839 | 210 | 1 049 | ||||
| Dividends paid | -457 | -457 | -77 | -534 | |||||
| Treasury share disposal | 11 | -11 | 0 | 0 | |||||
| Share-based payments | 5 | 5 | 5 | ||||||
| Changes in ownership | 0 | -48 | -48 | ||||||
| Equity on Dec 31, 2012 | 2 650 | 7 662 | 223 | -272 | 28 | 6 093 | 16 384 | 1 283 | 17 667 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| SEGMENT INFORMATION | IV | IV | I-IV | I-IV |
| EUR 1000 | 2012 | 2011 | 2012 | 2011 |
| Net sales by operating segments | ||||
| Contract Customers Division | 21 193 | 22 581 | 76 250 | 82 542 |
| Direct Sales Division | 4 005 | 4 692 | 14 023 | 16 397 |
| Group Services | 235 | 371 | 1 079 | 1 138 |
| Intersegment eliminations | -328 | -117 | -1 114 | -948 |
| TOTAL NET SALES | 25 105 | 27 526 | 90 238 | 99 129 |
| Operating profit/loss by operating segments | ||||
| Contract Customers Division | 756 | 879 | 2 041 | 2 136 |
| Direct Sales Division | 100 | 78 | -38 | 215 |
| Group Services and non-allocated items | -220 | -172 | -872 | -756 |
| TOTAL OPERATING PROFIT/LOSS | 637 | 785 | 1 132 | 1 595 |
| KEY FIGURES | IV | IV | I-IV | I-IV |
| EUR 1000 | 2012 | 2011 | 2012 | 2011 |
| Net sales | 25 105 | 27 526 | 90 238 | 99 129 |
| Change in net sales, % | -8,8 % | 1,7 % | -9,0 % | 6,5 % |
| EBITDA | 959 | 1 084 | 2 269 | 2 689 |
| EBITDA margin, % | 3,8 % | 3,9 % | 2,5 % | 2,7 % |
| Operating profit/loss | 637 | 785 | 1 132 | 1 595 |
| Operating profit/loss margin, % | 2,5 % | 2,9 % | 1,3 % | 1,6 % |
| Profit/Loss before taxes | 525 | 763 | 990 | 1 139 |
| Profit/Loss before taxes margin, % | 2,1 % | 2,8 % | 1,1 % | 1,1 % |
| Net profit/loss for the period attributable to equity holders of the parent company | 369 | 468 | 717 | 634 |
| Net profit/loss for the period, % | 1,5 % | 1,7 % | 0,8 % | 0,6 % |
| Earnings per share, EUR (diluted = non-diluted) | 0,06 | 0,07 | 0,11 | 0,10 |
| Return on equity (ROE), % | 2,82 % | 3,35 % | 5,11 % | 4,82 % |
| Return on investment (ROI), % | 2,10 % | 3,01 % | 4,67 % | 5,45 % |
| Equity-to-assets ratio at the end of period, % | 44,3 % | 40,3 % | 44,3 % | 40,3 % |
| Debt-to-equity ratio at the end of period | 27,6 % | 40,3 % | 27,6 % | 40,3 % |
| Equity per share at the end of period, EUR * | 2,51 | 2,45 | 2,51 | 2,45 |
| Investments in non-current assets | 220 | 234 | 972 | 1 167 |
| Investments in non-current assets, % of net sales | 0,9 % | 0,9 % | 1,1 % | 1,2 % |
| Treasury shares held by the Group at the end of period | 85 000 | 90 000 | 85 000 | 90 000 |
| Treasury shares, % of total share capital and votes | 1,3 % | 1,4 % | 1,3 % | 1,4 % |
| Number of total issued shares at the end of period | 6607628 | 6607628 | 6607628 | 6607628 |
| Personnel on average during the period | 328 | 368 | 343 | 365 |
| Personnel at the end of period | 326 | 359 | 326 | 359 |
* Equity attributable to the equity holders of the parent company / Number of shares excluding the acquired own shares
| QUARTERLY KEY FIGURES | IV | III | II | I | IV | III | II | I |
| EUR 1000 | 2012 | 2012 | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 |
| Net sales | 25 105 | 19 768 | 22 039 | 23 326 | 27 526 | 21 971 | 24 390 | 25 242 |
| EBITDA | 959 | 470 | 364 | 476 | 1 084 | 567 | 756 | 282 |
| Operating profit/loss | 637 | 174 | 106 | 216 | 785 | 308 | 491 | 10 |
| Profit/Loss before taxes | 525 | 184 | 58 | 223 | 763 | 151 | 318 | -93 |
| Net profit/loss for the period attributable to the equity holders of the parent company | 369 | 150 | 25 | 174 | 468 | 105 | 241 | -180 |
| Earnings per share, EUR (diluted = non-diluted) | 0,06 | 0,02 | 0,00 | 0,03 | 0,07 | 0,02 | 0,04 | -0,03 |
| RELATED PARTY TRANSACTIONS | IV | IV | I-IV | I-IV |
| EUR 1000 | 2012 | 2011 | 2012 | 2011 |
| Sales to related parties | 66 | 25 | 203 | 184 |
| Purchases from related parties | 32 | 7 | 80 | 30 |
| Current non-interest-bearing receivables from related parties | 0 | 6 | 0 | 6 |
| Non-current interest-bearing receivables from related parties | 33 | 87 | 33 | 87 |
| Loan payables to related parties | 0 | 0 | 0 | 0 |
| COMMITMENTS | Dec 31 | Dec 31 | ||
| EUR 1000 | 2012 | 2011 | ||
| Mortgages and guarantees on own behalf | ||||
| Business mortgage for the Group's loan liabilities | 7 550 | 7 550 | ||
| Real estate pledge for the Group's loan liabilities | 900 | 900 | ||
|
Subsidiary shares pledged as security for group companies' liabilities |
4 018 | 3 284 | ||
|
Other listed shares pledged as security for group companies' liabilities |
187 | 215 | ||
|
Current receivables pledged as security for group companies' liabilities |
272 | 258 | ||
|
Pledges and guarantees given for the group companies' off-balance sheet commitments |
232 | 222 | ||
| Guarantees given on behalf of third parties | 114 | 176 | ||
| Minimum future operating lease payments | 6 033 | 5 861 |
Accounting principles applied in the condensed consolidated financial statements
These condensed consolidated financial statements are unaudited. This report has been prepared in accordance with IAS 34 following the valuation and accounting methods guided by IFRS principles. The accounting principles used in the preparation of this report are consistent with those described in the previous year’s Financial Statement taking into account also the possible new, revised and amended standards and interpretations. Income tax is the amount corresponding to the actual effective rate based on year-to-date actual tax calculation.
The IFRS principles require the management to make estimates and assumptions when preparing financial statements. Although these estimates and assumptions are based on the management’s best knowledge of today, the final outcome may differ from the estimated values presented in the financial statements.
A part of the Group’s loan agreements include covenants, according to which the equity ratio shall be 35 percentages at minimum and the interest-bearing debt/EBITDA ratio shall be 3.5 at maximum in the end of each financial year. On December 31, 2012 the covenants were reached successfully. The equity ratio of 44.3 % exceeded the required level and the interest-bearing debt/EBITDA ratio was below 3.5 in accordance with the covenants.
The Group has no knowledge of any significant events after the end of the financial period that would have had a material impact on this report in any other way that has been already discussed in the review by the Board of Directors.
In Vantaa on January 4, 2013
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
CEO Heikki Vienola
tel. +358 9 5259 0050 or mobile: +358 50 65 110
e-mail: heikki.vienola@wulff.fi
DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.wulff-group.com
