Salcomp Plc Interim Report 11 August 2009 at 8:15 Finnish time
Salcomp Plc Interim Report 1 January - 30 June 2009
NET SALES WEAKENED FROM LAST YEAR BUT CLEARLY IMPROVED FROM THE FIRST QUARTER
April - June 2009:
-Net sales decreased by 15% to EUR 61.1 million (EUR 72.1 million in April-June
2008), but increased 29% compared with the first quarter of 2009 (EUR 47.5
million in January-March 2009).
-Number of chargers delivered decreased by 18% to 58.7 million pieces (71.6
million pieces).
-Market share in mobile phone chargers was some 22% (23%).
-Operating profit improved by 19% to EUR 3.8 million (EUR 3.2 million).
-Operating profit, excluding the exchange rate gains/losses, was EUR 2.8 million
(EUR 4.2 million).
-Earnings per share, excluding the deferred tax, improved by 80% to EUR 0.09
(EUR 0.05).
-Cash flow from operating activities, excluding the change in selling of
receivables, was EUR 5.1 million positive (EUR 6.5 million positive).
-Cash and cash equivalents at the end of June were EUR 19.5 million (EUR 11.3
million).
January - June 2009:
-Net sales decreased by 22% to EUR 108.7 million (EUR 138.9 million in
January-June 2008).
-Number of chargers delivered decreased by 22% to 105.4 million pieces (135.0
million pieces).
-Operating profit weakened by 65% to EUR 2.8 million (EUR 8.0 million).
-Operating profit, excluding the exchange rate gains/losses, was EUR 2.9 million
(EUR 9.3 million).
-Earnings per share, excluding the deferred tax, decreased by 55% to EUR 0.05
(EUR 0.11).
-Cash flow from operating activities, excluding the change in selling of
receivables, was EUR 6.5 million negative (EUR 10.7 million positive).
Outlook for 2009
-Salcomp's net sales in 2009 are expected to decrease compared with the 2008
level. Due to the lower net sales, the operating profit will be below the 2008
level but will remain positive.
Markku Hangasjärvi, President and CEO:
“The global financial crisis impacted further on the mobile phone market during
the second quarter of the year. However, compared with the situation at the end
of last year and in the first quarter of this year, a slight picking up can be
seen. This can also be noticed in the number of chargers delivered by Salcomp,
as well as in the net sales, which decreased in the second quarter of the year
compared with the corresponding period last year but, nevertheless, clearly
improved from the first quarter level this year.
We are especially happy that we could improve our profitability during the
second quarter compared with the first quarter of the year. Both the operating
profit and profit for the period clearly moved back into the black, while both
figures were in the red at the end of the first quarter. Quick reaction to the
weaker demand by adjusting the operations, increase in the number of chargers
delivered and favorable exchange rate changes improved our profitability.
According to estimates published by various market research companies and mobile
phone manufacturers, some 268 million mobile phones were sold during the second
quarter of the year. Salcomp's reported market share in the mobile phone
chargers was some 22% in the second quarter of the year, whereas it was only
some 18% in the first quarter of the year. When comparing our sequential market
shares (Salcomp's delivered chargers divided by the number of mobile phones sold
to end-users), it should be noted that in the first quarter, a substantial part
of the apparent market share decrease came from the effects of destocking by
both mobile phone manufacturers and distributors. However, in the second quarter
the destocking has leveled off and should have only minor effects on the market
share calculations.
According to our strategic targets, we have broadened our product offering
outside the low power range chargers by introducing the 15 watt Nova power
adapter platform. Power adapters based on the Nova platform are suitable for
data communications devices, such as modems, netbooks and point-of-sales
devices. In addition, the standardization proceeding in the mobile phone charger
technology has increased our interest in developing new product platforms and
alternative distribution channels for accessory chargers. We are convinced that
our efforts to seek for growth both among new mobile phone customers and
distribution channels, as well as in selected product groups outside the mobile
phone segment, will form a solid base to further develop our business from the
current level.”
Financial development in April - June 2009
Salcomp's net sales decreased by 15% in April-June to EUR 61.1 million (EUR 72.1
million in April-June 2008). The decrease resulted from the number of chargers
delivered declining by 18% to 58.7 million (71.6 million) pieces. The market
share in mobile phone chargers was approximately 22% (approximately 23%).
The operating profit improved by 19% to EUR 3.8 million (EUR 3.2 million). The
operating profit was improved by some EUR 1.0 million in realized and unrealized
exchange rate gains, whereas operating profit in April-June 2008 was decreased
by some EUR 1.0 million in exchange rate losses. The operating margin was 6.2%
(4.4%) in the second quarter of the year.
The Group's net finance expenses were EUR 0.1 million positive (EUR 0.4 million
negative). The finance expenses for the second quarter include EUR 0.6 million
profit (EUR 0.1 million profit) due to the unrealized exchange rate differences
in intra-group loans. Renewing the Group's financial package in June involved a
one-off cost of approximately EUR 0.3 million.
Taxes for the period totaled EUR 1.2 million (EUR 1.5 million). They include a
deferred tax of EUR 0.7 million (EUR 0.7 million) resulting from the parent
company's tax-deductible goodwill amortization.
The profit for the period amounted to EUR 2.6 million (EUR 1.3 million).
Earnings per share were EUR 0.07 (EUR 0.03) and earnings per share, excluding
the deferred tax, EUR 0.09 (EUR 0.05). Diluted earnings per share were EUR 0.07
(EUR 0.03).
Cash flow from operating activities during the April-June period amounted to EUR
2.1 million positive (EUR 7.8 million positive). The cash flow from operating
activities, excluding the change in selling of receivables, was EUR 5.1 million
positive (EUR 6.5 million positive).
Financial development in January - June 2009
The net sales decreased by 22% in January-June to EUR 108.7 million (EUR 138.9
million in January-June 2008). The number of chargers delivered declined by 22%
to 105.4 million (135.0 million) pieces.
The operating profit was EUR 2.8 million (EUR 8.0 million) in January-June. The
profitability was burdened by the decrease in the number of chargers delivered.
In addition, the operating profit was decreased by some EUR 0.1 million in
realized and unrealized exchange rate losses, whereas operating profit in
January-June 2008 was decreased by some EUR 1.3 million in exchange rate losses.
The operating margin was 2.6% (5.7%) in the first half of the year.
The Group's net finance expenses were EUR 0.1 million positive (EUR 2.6 million
negative). The finance expenses for the period include EUR 0.8 million profit
(EUR 1.2 million losses) due to the unrealized exchange rate differences in
intra-group loans.
Taxes for the period totaled EUR 2.2 million (EUR 2.5 million). They include a
deferred tax of EUR 1.5 million (EUR 1.5 million) resulting from the parent
company's tax-deductible goodwill amortization.
The profit for the period amounted to EUR 0.7 million (EUR 2.8 million).
Earnings per share were EUR 0.02 (EUR 0.07) and earnings per share, excluding
the deferred tax, EUR 0.05 (EUR 0.11). Diluted earnings per share were EUR 0.02
(EUR 0.07).
R&D and capital expenditure
The Group's R&D expenditure was EUR 2.7 million (EUR 2.7 million) in
January-June, or 2.5% (2.0%) 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. During the period, two new product platforms
were introduced. Stratos is a very small USB charger, and the Nova power adapter
platform broadens Salcomp's product offering outside low power range chargers.
Nova power adapters are suitable for data communications devices, such as modems
and routers.
The capital expenditure in January-June amounted to EUR 0.4 million (EUR 2.4
million). The capital expenditure mainly involved maintaining the production
capacity.
Financing
Cash flow from operating activities during the January-June period amounted to
EUR 7.6 million negative (EUR 5.3 million positive) due to the low level of net
working capital at the beginning of the year. The cash flow from operating
activities, excluding the change in selling of receivables, was EUR 6.5 million
negative (EUR 10.7 million positive). At the end of June, the cash and cash
equivalents were EUR 19.5 million (EUR 11.3 million).
The Group's equity ratio at the end of June was 38.9% (37.4%), and gearing was
15.2% (38.4%). Net interest-bearing debt totaled EUR 10.2 million (EUR 25.5
million) at the end of the period.
Salcomp renewed its financing in June. The new financing consists of a EUR 20
million bank loan and a new EUR 7 million capital loan. The loan of EUR 20
million, agreed with the Nordea Bank, can be further syndicated and consists of
a EUR 10 million term loan and a EUR 10 million revolving credit facility. The
loan period is 3 years. The facilities contain market customary covenants and
undertakings. The capital loan of EUR 7 million is a capital loan in accordance
with chapter 12 of the Finnish Companies Act and is granted by Nordstjernan AB,
the majority shareholder of Salcomp. The loan carries a cumulative annual
interest of 12 per cent, and it will be repaid together with accrued interest,
at the latest on 31 December 2012, subject to legal limitations pertaining to
capital loans. In addition, terms of the capital loan granted by Nordstjernan at
the end of 2008 were changed to correspond with the terms of the new capital
loan. The capital loans include normal terms related to the financing. The
matters pertaining to the capital loans have been prepared by the members of the
Board of Directors who are independent of the significant shareholders. The loan
arrangements improve the Group liquidity.
Personnel
The Group employed 6,993 (10,117) people at the end of June: 4,440 in China,
1,083 in Brazil, 1,421 in India and 49 people in Finland and other countries.
Markku Saarikannas, Vice President, Strategic Planning, resigned from Salcomp as
of 1 August 2009. The Management Team of Salcomp consists of Markku Hangasjärvi,
President and CEO, Hannu Hyrsylä, Vice President, Global Sourcing, Pekka
Kyyriäinen, Vice President, Global Operations, Niilo Oksa, Vice President, Human
Resources, Antero Palo, Vice President, Sales & Marketing, Juha Raussi, Vice
President, R&D and Jari Saarinen, CFO.
Shares and shareholders
Salcomp's share price fluctuated between EUR 1.15 and EUR 1.94 during
January-June. The closing price at the end of June was EUR 1.46. Share trading
amounted to EUR 0.6 million and 0.4 million shares. According to the book-entry
system, Salcomp had 1,113 shareholders at the end of the period. Foreign
ownership at the end of June was 77.0% and the market value EUR 56.9 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 of
charger components and in the competition in the mobile phone charger markets,
as well as the standardization of mobile phone chargers, including USB-chargers.
Due to the standardization, it is possible that in the future, part of mobile
phone kits will not include a separate mobile phone charger. Furthermore,
consolidation of the customer base and deterioration in the financial position
of a major customer may have a negative effect on Salcomp's sales and
profitability.
Major changes in exchange rates can be considered as one of the other
substantial uncertainty factors in the short term, 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 weakening global
economy on the mobile phone market and on the stability of the financial market,
as well as accessibility of financing, have an influence on Salcomp's business.
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
2008.
Outlook for 2009
According to the estimates published by Salcomp's key customers and by the
various market research companies, the mobile phone market is expected to
decrease by approximately 10% during 2009, compared with 2008. Measured by the
number of units, this would mean fewer than 1.1 billion mobile phones and
therefore, mobile phone chargers, to be sold in 2009.
Salcomp's net sales in 2009 are expected to decrease compared with the 2008
level. Due to the lower net sales, the operating profit will be below the 2008
level but will remain positive.
Helsinki, 11 August 2009
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
A Finnish briefing for analysts and media will be held on 11 August 2009 at
12:00 Finnish time at Hotel Scandic Simonkenttä, Simonkatu 9, Helsinki. The
Interim Report slide show presentation will be available at Salcomp's web page,
www.salcomp.com, after the disclosure of the stock exchange release.
Salcomp's Interim Report for January-September will be published on 5 November
2009.
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| STATEMENT OF COMPREHENSIVE INCOME |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| | 1-6/ | 1-6/ | Change | 1-12/ |
| | 2009 | 2008 | % | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 108 678 | 138 947 | -21.8% | 283 250 |
--------------------------------------------------------------------------------
| Cost of sales | -97 869 | -122 821 | -20.3% | -253 832 |
--------------------------------------------------------------------------------
| Gross margin | 10 809 | 16 126 | -33.0% | 29 418 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Other operating income | 11 | 213 | -94.8% | 220 |
--------------------------------------------------------------------------------
| Sales and marketing | -964 | -1 180 | -18.3% | -2 455 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Administrative expenses | -4 219 | -4 478 | -5.8% | -9 314 |
--------------------------------------------------------------------------------
| Research and development | -2 729 | -2 728 | 0.0% | -5 754 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -109 | 0 | | -23 |
--------------------------------------------------------------------------------
| Operating profit | 2 799 | 7 953 | -64.8% | 12 092 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Finance income | 1 016 | 353 | 187.8% | 441 |
--------------------------------------------------------------------------------
| Finance expenses | -949 | -2 985 | -68.2% | -6 962 |
--------------------------------------------------------------------------------
| Profit before tax | 2 866 | 5 321 | -46.1% | 5 571 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Income tax expenses | -2 218 | -2 476 | -10.4% | -4 497 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 648 | 2 845 | -77.2% | 1 074 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | | | | |
| income for the period | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Exchange differences on | 2 176 | 546 | 298.5% | -565 |
| translating foreign | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | 2 176 | 546 | 298.5% | -565 |
| income for the period, | | | | |
| net of tax | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE | 2 824 | 3 391 | -16.7% | 509 |
| INCOME FOR THE PERIOD | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Basic earnings per | 0.02 | 0.07 | -71.4% | 0.03 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0.02 | 0.07 | -71.4% | 0.03 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF COMPREHENSIVE | | | |
| INCOME | | | |
| (EUR 1 000) | | | |
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | Change |
| | 2009 | 2008 | % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 61 145 | 72 113 | -15.2% |
--------------------------------------------------------------------------------
| Cost of sales | -53 210 | -64 620 | -17.7% |
--------------------------------------------------------------------------------
| Gross margin | 7 935 | 7 493 | 5.9% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Other operating income | 8 | 125 | -93.6% |
--------------------------------------------------------------------------------
| Sales and marketing | -476 | -602 | -20.9% |
| expenses | | | |
--------------------------------------------------------------------------------
| Administrative expenses | -2 106 | -2 356 | -10.6% |
--------------------------------------------------------------------------------
| Research and development | -1 472 | -1 492 | -1.3% |
| expenses | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -109 | 0 | |
--------------------------------------------------------------------------------
| Operating profit | 3 780 | 3 168 | 19.3% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Finance income | 681 | 154 | 342.2% |
--------------------------------------------------------------------------------
| Finance expenses | -611 | -527 | 15.9% |
--------------------------------------------------------------------------------
| Profit before tax | 3 850 | 2 795 | 37.7% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Income tax expenses | -1 218 | -1 541 | -21.0% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Profit for the period | 2 632 | 1 254 | 109.9% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Other comprehensive income for | | | |
| the period | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Exchange differences on | 519 | 1 226 | -57.7% |
| translating foreign operations | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Other comprehensive income for | 519 | 1 226 | -57.7% |
| the period, net of tax | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE INCOME FOR | 3 151 | 2 480 | 27.1% |
| THE PERIOD | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0.07 | 0.03 | 133.3% |
--------------------------------------------------------------------------------
| Diluted earnings per share, | 0.07 | 0.03 | 133.3% |
| EUR | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF FINANCIAL POSITION |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| | 30.6.2009 | 30.6.2008 | Change % | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 20 993 | 22 997 | -8.7% | 22 559 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Goodwill | 66 412 | 66 412 | 0.0% | 66 412 |
--------------------------------------------------------------------------------
| Other intangible | 404 | 592 | -31.7% | 397 |
| assets | | | | |
--------------------------------------------------------------------------------
| Deferred tax assets | 3 009 | 3 193 | -5.8% | 3 057 |
--------------------------------------------------------------------------------
| | 90 818 | 93 194 | -2.5% | 92 425 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 21 829 | 26 005 | -16.1% | 29 531 |
--------------------------------------------------------------------------------
| Trade and other | 40 072 | 47 974 | -16.5% | 30 637 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 19 539 | 11 284 | 73.2% | 26 590 |
| equivalents | | | | |
--------------------------------------------------------------------------------
| | 81 440 | 85 263 | -4.5% | 86 758 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total assets | 172 258 | 178 457 | -3.5% | 179 183 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Equity and liabilities | | | | |
--------------------------------------------------------------------------------
| Share capital | 9 833 | 9 833 | 0.0% | 9 833 |
--------------------------------------------------------------------------------
| Invested unrestricted | 22 035 | 22 035 | 0.0% | 22 035 |
| equity | | | | |
--------------------------------------------------------------------------------
| Retained earnings | 35 021 | 34 503 | 1.5% | 31 911 |
--------------------------------------------------------------------------------
| | 66 889 | 66 371 | 0.8% | 63 779 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Non-current | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 16 311 | 13 763 | 18.5% | 14 861 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Capital loan | 10 000 | 0 | | 3 000 |
--------------------------------------------------------------------------------
| Interest-bearing | 16 467 | 21 904 | -24.8% | 15 329 |
| liabilities* | | | | |
--------------------------------------------------------------------------------
| | 42 778 | 35 667 | 19.9% | 33 190 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other | 59 358 | 61 538 | -3.5% | 70 309 |
| payables | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 3 233 | 14 881 | -78.3% | 11 905 |
| current liabilities | | | | |
--------------------------------------------------------------------------------
| | 62 591 | 76 419 | -18.1% | 82 214 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total equity and | 172 258 | 178 457 | -3.5% | 179 183 |
| liabilities | | | | |
--------------------------------------------------------------------------------
*includes EUR 10 million of revolving credit
--------------------------------------------------------------------------------
| 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 at 1 Jan | 9 833 | 22 035 | -219 | 36 992 | 68 641 |
| 2008 | | | | | |
--------------------------------------------------------------------------------
| | Total | | | 546 | 2 845 | 3 391 |
| | comprehensi | | | | | |
| | ve income | | | | | |
| | for the | | | | | |
| | period | | | | | |
--------------------------------------------------------------------------------
| | Option | | | | 185 | 185 |
| | costs | | | | | |
--------------------------------------------------------------------------------
| | Dividends | | | | -5 846 | -5 846 |
--------------------------------------------------------------------------------
| Equity at | 9 833 | 22 035 | 327 | 34 176 | 66 371 |
| 30 | | | | | |
| June 2008 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at 1 Jan | 9 833 | 22 035 | -784 | 32 695 | 63 779 |
| 2009 | | | | | |
--------------------------------------------------------------------------------
| | Total | | | 2 176 | 648 | 2 824 |
| | comprehensi | | | | | |
| | ve income | | | | | |
| | for the | | | | | |
| | period | | | | | |
--------------------------------------------------------------------------------
| | Option | | | | 286 | 286 |
| | costs | | | | | |
--------------------------------------------------------------------------------
| Equity at | 9 833 | 22 035 | 1 392 | 33 629 | 66 889 |
| 30 | | | | | |
| June 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CASH FLOWS |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| | 1-6/ | 1-6/ | Change | 1-12/ |
| | 2009 | 2008 | % | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before change in | 5 831 | 10 546 | -44.7% | 17 664 |
| working capital | | | | |
--------------------------------------------------------------------------------
| Change in working capital | -12 248 | -3 811 | 221.4% | 16 785 |
--------------------------------------------------------------------------------
| Financial items and taxes | -1 220 | -1 392 | -12.4% | -3 028 |
--------------------------------------------------------------------------------
| Net cash flow from | -7 637 | 5 343 | -242.9% | 31 421 |
| operating activities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Purchases | -359 | -1 966 | -81.7% | -5 311 |
--------------------------------------------------------------------------------
| Sales | 11 | 54 | -79.6% | 98 |
--------------------------------------------------------------------------------
| Cash flows from investing | -348 | -1 912 | -81.8% | -5 213 |
| activities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Cash flow before financing | -7 985 | 3 431 | -332.7% | 26 208 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Withdrawal of borrowings | 27 000 | 4 226 | 538.9% | 3 000 |
--------------------------------------------------------------------------------
| Repayment of borrowings | -27 425 | -5 515 | 397.3% | -10 964 |
--------------------------------------------------------------------------------
| Dividends | 0 | -5 846 | -100.0% | -5 846 |
--------------------------------------------------------------------------------
| Net cash flow from | -425 | -7 135 | -94.0% | -13 810 |
| financing activities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Change in cash and cash | -8 410 | -3 704 | 127.1% | 12 398 |
| equivalents | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 26 590 | 14 611 | 82.0% | 14 611 |
| at the beginning of the | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Translation difference | 1 359 | 377 | 260.5% | -419 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 19 539 | 11 284 | 73.2% | 26 590 |
| at the end of the period | | | | |
--------------------------------------------------------------------------------
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| KEY FIGURES | | | | |
--------------------------------------------------------------------------------
| | 1-6/ | 1-6/ | Change | 1-12/ |
| | 2009 | 2008 | % | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sold chargers, Mpcs | 105.4 | 135.0 | -21.9% | 271.2 |
--------------------------------------------------------------------------------
| Average sales price, | 1.03 | 1.03 | 0.2% | 1.04 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, MEUR | 108.7 | 138.9 | -21.8% | 283.3 |
--------------------------------------------------------------------------------
| EBITDA, MEUR | 5.3 | 10.5 | -49.6% | 17.3 |
--------------------------------------------------------------------------------
| EBITDA%, % | 4.9% | 7.6% | | 6.1% |
--------------------------------------------------------------------------------
| Operating profit, | 2.8 | 8.0 | -64.8% | 12.1 |
| MEUR | | | | |
--------------------------------------------------------------------------------
| Operating margin, % | 2.6% | 5.7% | | 4.3% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per | 0.02 | 0.07 | -71.4% | 0.03 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0.02 | 0.07 | -71.4% | 0.03 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share | 0.05 | 0.11 | -54.5% | 0.10 |
| excluding deferred | | | | |
| tax, EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share, | 1.72 | 1.70 | 1.2% | 1.64 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, % | 2.0% | 8.4% | | 1.6% |
--------------------------------------------------------------------------------
| Return on capital | 8.0% | 15.8% | | 12.1% |
| employed, % | | | | |
--------------------------------------------------------------------------------
| Return on net | 30.5% | 45.1% | | 51.1% |
| assets, % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 38.9% | 37.4% | | 35.6% |
--------------------------------------------------------------------------------
| Gearing, % | 15.2% | 38.4% | | 5.7% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure, | 0.4 | 2.4 | -85.0% | 5.3 |
| MEUR | | | | |
--------------------------------------------------------------------------------
| Capital expenditure, | 0.3% | 1.7% | | 1.9% |
| % of net sales | | | | |
--------------------------------------------------------------------------------
| Personnel on average | 6 882 | 10 165 | -32.3% | 9 872 |
--------------------------------------------------------------------------------
| Personnel at the end | 6 993 | 10 117 | -30.9% | 7 025 |
| of period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares on | 38 975 190 | 38 975 190 | | 38 975 190 |
| average | | | | |
--------------------------------------------------------------------------------
| Number of shares at | 38 975 190 | 38 975 190 | | 38 975 190 |
| the end of period | | | | |
--------------------------------------------------------------------------------
| Diluted number of | 37 597 129 | 39 076 016 | | 38 995 089 |
| shares on average | | | | |
--------------------------------------------------------------------------------
| Highest share price, | 1.94 | 4.17 | | 4.17 |
| EUR | | | | |
--------------------------------------------------------------------------------
| Lowest share price, | 1.15 | 3.15 | | 1.45 |
| EUR | | | | |
--------------------------------------------------------------------------------
| Average share price, | 1.44 | 3.60 | | 3.33 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Traded shares, Mpcs | 0.4 | 9.6 | | 12.2 |
--------------------------------------------------------------------------------
| Traded shares, MEUR | 0.6 | 34.4 | | 40.1 |
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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) |
--------------------------------------------------------------------------------
| | 30.6.2009 | 30.6.2008 | Change % | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| For own dept | | | | |
--------------------------------------------------------------------------------
| | Company and real | 82 000 | 170 000 | -51.8% | 170 000 |
| | estate mortgages | | | | |
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| | Others | 5 | 5 | 0.0% | 5 |
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| Leasing and rental | 8 608 | 10 451 | -17.6% | 10 044 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | 90 613 | 180 456 | -49.8% | 180 049 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY INFORMATION |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 4-6/09 | 1-3/09 | 10-12/0 | 7-9/08 | 4-6/08 | 7/08-6/0 |
| | | | 8 | | | 9 |
--------------------------------------------------------------------------------
| Sold chargers, | 58 662 | 46 753 | 62 532 | 73 584 | 71 598 | 241 531 |
| kpcs | | | | | | |
--------------------------------------------------------------------------------
| Net sales, | 61 145 | 47 533 | 69 548 | 74 755 | 72 113 | 252 981 |
| kEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating | 3 780 | -981 | 1 726 | 2 413 | 3 168 | 6 938 |
| profit, kEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating | 6.2% | -2.1% | 2.5% | 3.2% | 4.4% | 2.7% |
| margin, % | | | | | | |
--------------------------------------------------------------------------------
| Average sales | 1.04 | 1.02 | 1.11 | 1.02 | 1.01 | 1.05 |
| 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 (relating to symbols 2007A
and 2007B). 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 | 2007A | 2007B | 2007C |
| symbol | | | |
--------------------------------------------------------------------------------
| Number of | 657 500 | 682 500 | 707 500 |
| options | | | |
--------------------------------------------------------------------------------
| Vesting | 1.4.2007- | 1.4.2008- | 1.4.2009- |
| period | 31.3.2010 | 31.3.2011 | 31.3.2012 |
--------------------------------------------------------------------------------
| Options | 590 000 | 642 500 | 0 |
| granted | | | |
| before the | | | |
| current | | | |
| financial | | | |
| year | | | |
--------------------------------------------------------------------------------
| Options | | | 0 |
| granted | | | |
| during the | | | |
| current | | | |
| financial | | | |
| year | | | |
--------------------------------------------------------------------------------
| Options | -40 000 | -35 000 | 0 |
| forfeited | | | |
| during the | | | |
| current | | | |
| financial | | | |
| year | | | |
--------------------------------------------------------------------------------
| Settlement | 1 | 1 | 1 |
| (shares / | | | |
| option) | | | |
--------------------------------------------------------------------------------
| Settlement | 1.4.2010- | 1.4.2011- | 1.4.2012- |
| period | 31.3.2012 | 31.3.2013 | 31.3.2014 |
--------------------------------------------------------------------------------
| Grant date | 02.05.07 | 07.05.08 | |
--------------------------------------------------------------------------------
| Exercise | 2.88 | 3.40 | |
| price | | | |
--------------------------------------------------------------------------------
| Share price | 3.51 | 3.79 | |
| at grant date | | | |
--------------------------------------------------------------------------------
| The fair | 1.44 | 1.44 | |
| value of | | | |
| option at | | | |
| grant date | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RELATED PARTY INFORMATION |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| Related party | 30.6.2009 | 30.6.2008 | Change % | 31.12.2008 |
| transactions with | | | | |
| Nordstjernan AB | | | | |
--------------------------------------------------------------------------------
| Capital loan | 10 000 | 0 | | 3 000 |
--------------------------------------------------------------------------------
| Sales of receivables* | 83 | 0 | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital loan terms are represented in the stock exchange release on 17 June |
| 2009 concerning the renewal of the financing arrangement. |
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*remaining value of EUR 2.7 million transaction done in March
CALCULATION OF FINANCIAL RATIOS
Average personnel: Average of the amount of personnel at end of each month
Return on equity (%) = Profit for the period x 100 : Equity on average
Return on capital employed (%) = (Profit before tax + interest charges and other
finance expenses) x 100 : (Balance sheet total less interest-free debt (on
average))
Return on net assets (%) = Operating profit 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 : Balance sheet total less received advance
payments
Gearing (%) = (Interest-bearing debt less cash and cash equivalents) x 100 :
Equity
Earnings per share = Profit 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 = Profit for the period : Weighted average number of
shares outstanding during the period, adjusted for the share issue
