· Net sales of the first quarter of 2007 were EUR 23.6 million (EUR
21.6 million in 2006). Net sales increased by 9.3% compared to the
previous year.
· Operating profit was 0.2 million (loss EUR 0.5 million).
Operating profit includes EUR 0.9 million of costs related to the
public tender offer made by KEMET for Evox Rifa Group Oyj's shares
(restructuring costs in the corresponding period in 2006 were EUR 0.3
million).
· Loss before taxes was EUR 0.2 million (loss EUR 1.0 million).
· Earnings per share were EUR -0.004 (EUR -0.007).
· Order backlog on March 31, 2007 was EUR 21.5 million (EUR 20.4
million).
ECONOMIC DEVELOPMENT
Net Sales
Net sales of the Group totalled EUR 23.6 million (EUR 21.6 million in
2006).
In the first quarter of 2007 demand remained at a satisfactory level,
but price competition was hard in all market areas.
Profit
Operating profit of the Group was EUR 0.2 million (loss EUR 0.5
million) and loss before taxes was EUR 0.2 million (loss EUR 1.0
million). The operating profit includes EUR 0.9 million of costs
related to the public tender offer made by KEMET Corporation, through
its wholly owned subsidiary, KEMET Electronics Corporation, for Evox
Rifa's shares. Ín the corresponding period last year, the costs related
to restructuring were EUR 0.3 million.
Earnings per share were EUR -0.004 (EUR -0.007) and shareholders'
equity per share was EUR 0.031 (EUR 0.034).
Order backlog
The order backlog of the Group was EUR 21.5 million at the end of the
first quarter of 2007 (EUR 20.4 million at the end of the corresponding
period of 2006).
FINANCIAL STATUS AND CAPITAL EXPENDITURE
Liquid assets of the Group were EUR 1.4 million (EUR 0.6 million) and
the equity ratio was 11.4% (11.8%) at the end of the period. If the
convertible capital loan is counted as shareholders' equity, the equity
ratio is 21.7%.
Investments in manufacturing equipment were EUR 0.4 million (EUR 0.3
million).
SHARES AND SHARE CAPITAL
The number of shares of Evox Rifa Group Oyj was 178.156.018 on March
31, 2007 and the share capital was EUR 8.908.400,90.
ANNUAL GENERAL MEETING
The Annual General Meeting on April 23, 2007 decided, according to the
proposal by the Board of Directors, not to pay a dividend for the
fiscal period ended on December 31, 2006.
Mr. Per-Olof Loof, Mr. David E. Gable, Mr. Marc Kotelon, Mr. Kirk D.
Shockley and Mr. Michael W. Boone were elected as Members of the Board.
The Board of Directors has elected Per-Olof Loof as Chairman of the
Board.
KPMG Oy Ab was re-appointed auditors of the company.
The General Meeting also decided on the amendment of the Articles of
Association to comply with the new Companies Act.
The Annual General Meeting on 20 April 2006 had authorised the Board of
Directors for one year following the AGM to decide on one or more new
share issues and/or convertible loans so that the increase of the share
capital, based on new issues and/or convertible loans, could be a
maximum EUR 1.772.210. The authorization has expired and it was not
used.
PERSONNEL
The average number of personnel in Evox Rifa Group was 1376 during the
first quarter of 2007 (1343 in the same period in 2006).
BUSINESS DEVELOPMENT
Net sales of the electrolytic capacitors product group were EUR 13.2
million in the first quarter of 2007 (EUR 11.6 million in 2006).
Profitability of the product group continued at a good level.
Net sales of the film capacitors product group were EUR 10.4 million
(EUR 10.1 million in 2006). Profitability of the product group was
still at an unsatisfactory level, primarily because of the negative
result of the Suomussalmi plant.
MATERIAL RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The capacitor industry market has become increasingly global, which has
eliminated geographical market differences. A visible impact of this
has been the harmonization of prices and logistics requirements. Major
customers tend to concentrate their purchases with fewer suppliers,
keeping just one or two suppliers instead of three or four. Half a
dozen global suppliers dominate competition in certain product areas.
Evox Rifa Group's customers compete in areas in which technologies
change rapidly and products have a short life cycle. Product
development is exceptionally fast in the telecommunications market, as
new technologies weaken the competitiveness of existing technologies or
render them obsolete. The Group continuously evaluates benefits and
profitability of new production processes and technologies.
Evox Rifa Group has received product reclamations that are still being
processed. The Group's management believes that the provisions
contained in the consolidated balance sheet are sufficient to cover
potential currently known compensation risks.
EVENTS AFTER THE END OF THE FIRST QUARTER OF 2007
On 12 March 2007, KEMET Corporation through its wholly owned
subsidiary, KEMET Electronics Corporation, launched a public tender
offer for all shares of Evox Rifa Group Oyj and for all loan notes of
the convertible capital loan. The offer period expired on 12 April
2007. KEMET Electronics Corporation acquired the tendered shares and
convertible capital loan notes on 24 April 2007, after which it owned
92.7% of Evox Rifa Group Oyj's shares and 95.7% of the convertible
capital loan notes. KEMET's total holding in Evox Rifa Group Oyj
amounts to 94.1% of all shares and the loan notes, if all loan notes
were converted into new shares. Following the settlement of the
completion trades relating to KEMET's tender offer, Evox Rifa Group Oyj
has on 24 April 2007 become a subsidiary of KEMET Electronics
Corporation.
As KEMET's ownership in Evox Rifa Group Oyj exceeds 90 %, it has under
the Finnish Companies Act, the right and obligation to redeem at a fair
price the remainder of Evox Rifa's issued and outstanding shares. KEMET
Electronics Corporation has on 24 April 2007 notified Evox Rifa Group
Oyj of its decision to exercise the redemption right and presented its
redemption claim for the remaining shares in Evox Rifa Group Oyj under
the Finnish Companies Act.
The Board of Directors of Evox Rifa has on 24 April 2007 decided,
subject to Trade Register approval, to appoint Kirk D. Shockley as
Managing Director of Evox Rifa after former Managing Director Tuula
Ylhäinen having notified the company of her decision to leave the
company and move towards new challenges. Kirk Shockley will also be
leading the new Electrolytic and Film Business Group within the KEMET
group of companies.
OUTLOOK FOR THE YEAR 2007
KEMET Electronics Corporation, the majority owner of Evox Rifa Group
Oyj, has announced its intention to integrate the business of Evox
Rifa Group into KEMET's global organization of business units and
sales region units. The planning and implementation of such activites
will start in the second quarter of 2007.
During the course of completing the compulsory redemption proceedings
under the Companies Act, it is expected that the company's shares will
be delisted from the Helsinki Stock Exchange.
INCOME STATEMENT OF EVOX RIFA GROUP
1.1.- 1.1.- 1.1.-
31.3.07 31.3.06 31.12.06
1000 EUR 1000 EUR 1000 EUR
NET SALES 23 578 21 635 89 787
Operating expenses -22 754 -21 484 -85 220
Depreciation and -673 -657 -2 702
amortisation expenses
OPERATING PROFIT (LOSS) 151 -506 1 865
Financial income and
expenses -379 -502 -2 090
PROFIT (LOSS) BEFORE TAXES -228 -1 008 -225
Income Taxes -385 -163 -716
NET PROFIT (LOSS) FOR THE
PERIOD -613 -1 171 -941
Attributable to:
Shareholders of
the parent -625 -1 152 -948
Minority interest 12 -19 7
-613 -1 171 -941
Earnings per share (EUR) -0.004 -0.007 -0.005
Earnings per share (EUR),
diluted -0.004 -0.007 -0.005
BALANCE SHEET OF EVOX RIFA GROUP
31.3.07 31.3.06 31.12.06
ASSETS 1000 EUR 1000 EUR 1000 EUR
NON-CURRENT ASSETS
Property, plant and
equipment 12 471 15 314 12 821
Intangible assets 1 288 1 295 1 266
Other receivables 275 363 285
CURRENT ASSETS
Inventories 17 321 15 472 16 615
Trade and other receivables 17 390 18 822 17 109
Cash and cash equivalents 1 403 578 1 313
TOTAL ASSETS 50 148 51 844 49 409
EQUITY AND LIABILITIES
Share capital 8 909 8 861 8 909
Other restricted equity 2 611 2 603 2 611
Retained earnings -5 957 -5 465 -5 276
Minority interest 145 114 133
TOTAL EQUITY 5 708 6 113 6 377
LIABILITIES
Deferred tax liabilities 496 712 515
Convertible capital loan 5 158 5 038 5 125
Pension obligations 1 645 2 220 1 904
Non-current liabilities 7 530 9 137 7 557
Current liabilities 29 611 28 624 27 931
TOTAL EQUITY AND LIABILITIES 50 148 51 844 49 409
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 1.1. - 31.3.2007
Share Other Transl. Retained Minority Total
capital reserves difference earnings interest
Shareholders'
equity on
31.12.2006 8 909 2 611 -1 589 -3 687 133 6 377
Movements:
Translation
difference -56 -56
Loss for
the period -625 12 -613
Shareholders'
equity on
31.3.2007 8 909 2 611 -1 645 -4 312 145 5 708
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 1.1. - 31.3.2006
Share Other Transl. Retained Minority Total
capital reserves difference earnings interest
Shareholders'
equity on
31.12.2005 8 861 2 603 -1 481 -2 739 142 7 386
Movements:
Translation
difference -93 -9 -102
Loss for the
period -1 152 -19 -1 171
Shareholders'
equity on
31.3.2006 8 861 2 603 -1 574 -3 891 114 6 113
EVOX RIFA GROUP CASH FLOW STATEMENT
1.1.- 1.1.- 1.1.-
31.3.07 31.3.06 31.12.06
1000 EUR 1000 EUR 1000 EUR
Net cash flow from operating
activities 330 -3 846 -1 765
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and
equipment* -266 7 -738
Acquisition of intangible assets -27 -10 -16
Proceeds from sale of property,
plant and equipment 28 4 106 5 952
Net cash from investing activities -265 4 103 5 198
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 500 458 658
Repayment of borrowings -759 -2 024 -5 169
Payment of finance lease liabilities -32 -37 -141
Proceeds from the issue of shares 56
Net cash from financing activities -291 -1 603 -4 595
Net change in cash and cash
equivalents -226 -1 346 -1 163
Cash and cash equivalents at the
beginning of the period -5 183 -3 883 -3 883
Translation difference -1 137
Cash and cash equivalents at the end
of the period -5 409 -5 228 -5 183
Cash and cash equivalents:
Cash in bank and in hand 1 403 578 1 313
Bank overdrafts -6 812 -5 806 -6 496
Total -5 409 -5 228 -5 183
* New investment grant of 151 thousand euros has been deducted (Q1/2006
and year 2006 260 thousand euros).
The figures in the Group cash flow statement cannot be directly traced
from the balance sheet due to translation differences and elimination
of non-cash items.
EVOX RIFA GROUP KEY FIGURES
31.3.07 31.3.06 31.12.06
Return on equity %, ROE -40,6 % -69,4 % -13,7 %
Return on investment %, ROI 2,6 % -5,9 % 5,6 %
Equity ratio % 11,4 % 11,8 % 12,9 %
Equity ratio %*) 21,7 % 21,5 % 23,3 %
Gross investments in
fixed assets, TEUR 444 263 1 021
% of net sales 1,9 % 1,2 % 1,1 %
Earnings per share (EUR) -0,004 -0,007 -0,005
Equity of parent shareholders/
share (EUR) 0,031 0,034 0,036
Order backlog, (MEUR) 21,5 20,4 23,2
Average number of personnel 1 376 1 343 1 391
*) The convertible capital loan is included in the shareholders'
equity.
The figures of this Financial Report are unaudited.
This Financial Report is in compliance with the IFRS accounting
standards, but all requirements under IAS 34 have not been fulfilled.
In Espoo on April 26, 2007
EVOX RIFA GROUP OYJ
Board of Directors
For further information please contact: Evox Rifa Group Oyj, Juhani
Pöhö, Chief Financial Officer, tel. +358 9 5406 5011
DISTRIBUTION:
Helsinki Stock Exchange, Main Media