PKC Group Oyj FINANCIAL STATEMENTS BULLETIN, 18 FEBRUARY 2010 8:15 a.m.
THE PKC GROUP'S FINANCIAL STATEMENTS BULLETIN, 1 JANUARY - 31 DECEMBER 2009
Consolidated net sales fell by 35.3% on the previous year, totalling EUR 201.8
million (311.7 million). Operating profit was EUR 0.7 million (21.0 million),
profit before taxes EUR 1.1 million (15.2 million) and profit for the financial
year EUR 2.3 million (5.6 million). Earnings per share were EUR 0.13 (0.31). A
dividend of EUR 0.40 per share will be proposed.
HARRI SUUTARI, PRESIDENT AND CEO:
”Production of commercial vehicles in Europe fell to almost a third on the
previous year. A successful acquisition of MAN Nutzfahrzeuge AG's wiring harness
business in Poland meant that we were able to increase our market share and
PKC's deliveries in Europe only decreased by a third. Deliveries in Brazil and
North America almost halved. Demand for electronics design and manufacturing
services and deliveries of these declined by around a fifth on the previous
year.
At the beginning of November, we revised the Group structure by organising the
Wiring Harnesses business into a subgroup, with profit centres in Estonia,
Poland, Brazil and the United States. These business centres will continue to be
managed and supported by the Finnish parent company, PKC Wiring Systems. The
recruitment of a Managing Director for our Wiring Harnesses business was
completed in January 2010.
As a result of cut-backs in the operations, streamlining of the cost structure
and sales receivables financing, the need for working capital reduced, and cash
flow was strong. The financial position improved during the past year.
Early signs of economic growth are already visible, but it is uncertain how
especially the European economies that are key to our operations will develop as
government support reduces. Signs of a gradual recovery in the market are
reflected in the fact that in the last quarter there was an increase in orders
for new trucks received by our main customers in Europe and Latin America that
exceeded the average production levels of 2009. We intend to take advantage of
the low utilisation rate of our factories by investing in a rationalisation of
operations and in efforts to boost productivity. In the current financial
period, special attention will be paid to the further development of service for
current customers and to the acquisition of new customers”.
OPERATING ENVIRONMENT
The Wiring Harness business
The deliveries of heavy-duty trucks and new orders for them fell significantly
in all our markets compared with the previous year. The number of registrations
halved in our main market, Europe. Sales of agricultural tractors in Europe went
down by about a quarter on the previous year. Deliveries to the machine
construction industry in Europe remained at about two-fifths of what they had
been a year before. Signs of a gradual recovery in the market are reflected in
the fact that in the last quarter there was an increase in orders for new trucks
received by our main customers in Europe that exceeded the average production
levels of 2009.
The number of deliveries and new orders in South America fell by approximately a
third on the previous year. A sign of recovery in the South American markets is
reflected in the fact that the number of orders for trucks received by our
customers there exceeded the number of deliveries in the second half of the
year.
In North America deliveries of recreational commodities and the value of new
orders received by our customers were down by around 50% on the previous year.
The Electronics business
Weakening of the global economics and market uncertainty manifested themselves
in the Electronics business as a declining demand for services and increased
unpredictability. Apart from in the Asian markets, industrial investments fell
substantially, which in turn cut the number of the Group's deliveries of
industrial electronics by about a fifth.
NET SALES AND FINANCIAL PERFORMANCE
October-December
Consolidated net sales in October-December amounted to EUR 55.4 million (64.7
million), down 14.4% on the same period a year earlier. Consolidated operating
profit totalled EUR 2.6 million (-3.9 million), accounting for 4.8% of net sales
(-6.1%). The operating profit includes a non-recurring item of EUR 0.7 million
as a result of the costs of rationalisation being lower than what had been
estimated. Profitability was burdened by the low capacity utilisation rate
resulting from the exceptionally long production outages of certain of our main
customers during December. Depreciation amounted to EUR 2.6 million
(depreciation and impairment of goodwill totalled EUR 3.3 million). Financial
income and expenses were EUR -0.8 million (-3.5 million). Profit before taxes
was EUR 1.8 million (-7.4 million). Profit for the report period totalled EUR
3.2 million (-9.5 million). Earnings per share were EUR 0.18 (-0.53).
January-December
Consolidated net sales in the financial year totalled EUR 201.8 million (311.7
million), down by 35.3% on the previous year. Consolidated operating profit
totalled EUR 0.7 million (21.0 million), accounting for 0.3% of net sales
(6.7%). Profitability was burdened by non-recurring expenses of around EUR 4.3
due to rationalisation. Depreciation amounted to EUR 11.0 million (9.4 million).
Financial income and expenses were EUR 0.4 million (-5.8 million). Profit before
taxes was EUR 1.1 million (15.2 million). Profit for the financial year totalled
EUR 2.3 million (5.6 million). Earnings per share were EUR 0.13 (0.31).
Net sales generated by the Wiring Harnesses business during the report year fell
by 39.4% to EUR 149.4 million (246.5 million). The segment's share of
consolidated net sales was 74.0% (79.1%). The Wiring Harnesses business reported
an operating profit of EUR -3.9 million (9.7 million), or -2.6% of the segment's
net sales (4.0%).
The Electronics business segment's net sales fell by 19.5% to EUR 52.5 million
(65.2 million), accounting for 26.0% of consolidated net sales (20.9%). It
generated an operating profit of EUR 4.6 million (11.3 million), equivalent to
8.7% of the segment's net sales (17.3%).
Deferred tax assets of EUR 1.7 million were recorded on losses in previous
financial periods by companies in the Group. As the group's reorganisation costs
recognised in 2009 were smaller than had been estimated, the full-year operating
profit turned positive.
BALANCE SHEET AND FINANCING
Consolidated total assets at 31 December 2009 amounted to EUR 159.9 million
(187.4 million). Interest-bearing liabilities totalled EUR 43.6 million at the
close of the report period (72.0 million). The Group's equity ratio was 49.2%
(41.9%). Net liabilities totalled EUR 28.2 million (59.5 million) and gearing
was 35.9% (75.7%).
Inventories amounted to EUR 36.1 million (51.8 million). Current receivables
totalled EUR 43.5 million (62.0 million). Cash flows after investments during
the report period were EUR 38.3 million (-6.2 million). Cash in hand and at bank
amounted to EUR 15.3 million (12.5 million). In order to ensure financing
flexibility, PKC has available credit facilities.
CAPITAL EXPENDITURE
During the report period, the Group's gross capital expenditure totalled EUR 3.9
million (27.4 million), representing 1.9% of net sales (8.8%). Capital
expenditure involved the acquisition of production machinery and equipment as
well as information systems.
RESEARCH AND DEVELOPMENT
Research and development costs totalled EUR 5.5 million (5.8 million),
representing 2.7% (1.9%) of consolidated net sales. At the end of the financial
year, 114 (101) staff were employed in product development.
PERSONNEL
During the period under review, the Group had an average payroll of 4,478
employees (5,588). At the end of the financial year, the Group employed 4,077
staff (5,652), of whom 3,617 (4,951) worked abroad and 460 (701) worked in
Finland.
Staff cuts were made in various units within the Group. A total of EUR 2.9
million was recorded in non-recurring costs in respect of layoffs in the period
under review.
As a result of the co-determination negotiations concluded in January 2009,
almost the entire staff of PKC Group Oyj in Kempele, i.e. 250 employees, were
temporarily laid off for periods of a week or longer, and 60 staff were laid off
at PKC Electronics Oy's Raahe factory for a maximum period of three months.
As a result of the co-determination negotiations concluded in May 2009, it was
decided permanently to lay off 128 staff in stages from PKC Group Oyj, Kempele.
As a result of the co-determination negotiations concluded in June 2009, it was
decided temporarily to lay off approximately 45 staff from PKC Group Oyj's
Kempele unit. The layoffs were a continuation of those agreed at the
negotiations concluded in January and were set to last from one to six weeks.
As a result of the co-determination negotiations concluded in August, PKC
Electronics temporarily laid off 60 staff. The layoffs were implemented in
stages by the end of December.
QUALITY AND THE ENVIRONMENT
The Group's Wiring Harnesses business, with the exception of the Polish unit,
is certified in accordance with the ISO/TS 16949 and ISO 9001 quality standards
as well as the ISO 14001 environmental management standard. The Curitiba
production unit also has OHSAS 18001 occupational health and safety management
system certification. In December 2009 ISO9001 and ISO14001 certification audits
were carried out at the wiring harness factory in Poland. The building of the
ISO/TS 16949 quality management system in Poland is progressing as planned and
the certification process will be completed during the first half of 2010.
The Group's Electronics business is certified in accordance with the ISO 9001
and ISO 14001 standards. An ISO/TS 16949 certification audit was carried out at
the factory in Raahe during the last quarter. Preparations for ISO/TS 16949
quality management system certification have continued as planned at the units
in China and Kostomuksha.
Best quality practices are part of PKC's strategy. The selected practices are
tried and tested quality tools and procedures that aid the development and
standardisation of production processes, methods and products, ensuring that
they are as uniform as possible, regardless of production site. Best quality
practices also include Six Sigma, which is used in the Wiring Harness business
in the implementation of strategically important development projects. Best
quality practices are a way to encourage every employee to be closely involved
in quality work and to improve quality continuously. During the period under
review, the Electronics business embarked upon a best quality practices project
as part of its own operation. Progress will be closely monitored at the
Executive Board and as part of external system audits.
MANAGEMENT AND THE GROUP STRUCTURE
The Annual General Meeting on 27 March 2009 resolved to pay a dividend of EUR
0.15 per share, i.e. a total of around EUR 2.7 million. The dividend was paid
out on 8 April 2009.
The Annual General Meeting re-elected Endel Palla, Olli Pohjanvirta, Matti
Ruotsala and Jyrki Tähtinen to the Board of Directors. Outi Lampela was elected
as a new member to the Board. At its organisation meeting, the Board of
Directors elected Matti Ruotsala Chairman and Jyrki Tähtinen Vice Chairman.
On 30 April 2009 PKC Group Oyj's Board of Directors resolved to appoint an Audit
Committee from among its members. Outi Lampela was elected Chairman of the Audit
Committee and Olli Pohjanvirta was elected as a member.
PKC Group Oyj's Executive Board member's, Pekka Korkala's, Vice President
responsible for the production and marketing of Wiring Harnesses, employment
relationship ended on 8 September 2009. Since then, the members of the
Executive Board have been Harri Suutari, President and CEO (Chairman), Jarmo
Rajala, Vice President (Electronics), Jyri Kontio, Vice President (Wiring
harnesses: Sourcing, Quality and Technology), Sanna Raatikainen, General
Counsel, Marja Sarajärvi, CFO, and Jarkko Kariniemi, Director of HR & Risk
Management.
Harri Ojala, Master of Science (Technology), MBA, aged 50, has been appointed
Managing Director of PKC Wiring Systems Oy. In deviation to the previously
published information, he will start on 15 March 2010. When Ojala takes up his
position on the Executive Board, he will be responsible for the Group's Wiring
Harnesses business, at which point Jyri Kontio, Vice President, Wiring
Harnesses, will cease to be a member of the Executive Board, while his
employment relationship continues.
On 1 November 2009 PKC reorganise its wiring harness business into a separate
subgroup. The aim is to streamline the operations and to improve its
opportunities for continued development.
AUDITORS
The authorised public accounting firm Ernst & Young Oy carried out PKC Group
Oyj's audit, with Juhani Rönkkö, Authorised Public Accountant, acting as the
principal auditor.
SHARES AND SHAREHOLDERS
PKC Group Oyj's share turnover on NASDAQ OMX Helsinki Ltd. from 1 January to 31
December 2009 was 8,655,356 shares (12,940,819 shares), representing 48.7% of
the average number of shares (72.8%). Shares were traded to a total value of EUR
37.8 million (85.9 million). The low during the period in review was EUR 2.70
(2.82) and the high was EUR 6.83 (9.48). The closing price on the last trading
day in the period under review was EUR 6.60 (3.25) and the average price during
the period was EUR 4.38 (6.56). The company's market capitalisation at 31
December 2009 was EUR 117.4 million (57.8 million).
Shares held by Board members, their closely associated persons and corporations
in which they have a controlling interest, accounted for 2.3% (3.2%) of the
total number of shares at the close of the period under review. PKC Group Oyj
had 7,336 (7,648) shareholders at the end of the report period. The proportion
of shares held by foreigners and by way of nominee registrations at 31 December
2009 was 15.5% of the shares outstanding (25.8%).
THE BOARD'S AUTHORISATIONS
The Board of Directors was granted authorisation by the Annual General Meeting
on 29 March 2007 to decide on one or more share issues and the granting of
special rights as defined in Chapter 10, Section 1 of the Companies Act and on
all the terms and conditions thereof. A maximum total of 3,500,000 shares may be
issued or subscribed for on the basis of the authorisation. This authorisation
includes the right to decide on a directed share issue. The authorisation will
remain in force for five years from the date of the resolution of the Annual
General Meeting. The authorisation may be used at the Board's discretion for
financing corporate acquisitions, for carrying out inter-company co-operation or
similar arrangements, or for strengthening the company's financing and capital
structure.
The Board of Directors does not have a valid authorisation to acquire the
company's own shares, and the company does not hold any own shares (treasury
shares).
STOCK OPTION SCHEMES
In 2006, PKC launched a stock option scheme according to which the maximum total
number of stock options to be issued is 697,500. They are divided into A, B and
C warrants. At the close of the financial year, the group's key personnel held a
total of 202,500 2006A warrants, 193,520 2006B warrants and 219,840 2006C
warrants.
The subscription period for shares through the exercise of the 2006 stock
options is 2009-2013. The share subscription price for stock options is the
volume-weighted average price of the PKC Group Oyj share on NASDAQ OMX Helsinki,
with dividend adjustments, as defined in the stock option terms (at present, EUR
10.49 for the 2006A, 2006B and 2006C warrants). Through the exercise of the 2006
stock options, the share capital of PKC Group Oyj may be increased by a maximum
total of 697,500 new shares and EUR 234,673.67. The 2006 stock options are
subject to a share ownership plan. Key personnel are obliged to subscribe for or
purchase the company's shares with 20% of the gross income earned from stock
options and to own these shares for two years. The company's President and CEO
is obliged to own these shares for the duration of his managerial contract.
The Annual General Meeting on 27 March 2009 decided to issue stock options to
key personnel in the company and its subsidiaries. The maximum total number of
stock options issued will be 600,000 and they are divided into A, B and C
options. At the close of the financial year, the group's key personnel held a
total of 151,500 2009A warrants.
The subscription price for shares through the exercise of the 2009 stock options
will be the volume-weighted average price of the PKC Group Oyj share on NASDAQ
OMX Helsinki for April 2009, 2010 and 2011 + 20% (at present, EUR 3.85 for the
2009A warrants). The amount of the dividend decided after the period for the
determination of the share subscription price, but before shares are subscribed
for, shall be deducted from the share subscription price of the stock options on
each dividend record date. The subscription price for shares will be recorded in
the invested non-restricted equity fund. The stock options entitle their owners
to subscribe to a maximum total of 600,000 new shares in the company or existing
shares held by the company. The share subscription period for 2009A warrants
will be 1 April 2012 — 30 April 2014, for 2009B warrants 1 April 2013 — 30 April
2015 and for 2009C warrants 1 April 2014 — 30 April 2016.
SHORT-TERM RISKS AND UNCERTAINTIES
The development of investments in the near future in Europe has especially
significant effect on PKC's result. The start of growth requires positive and
stable increase of Pan European national income. Other main uncertainties
include price pressures on our final products, the significant fluctuation of
currency exchange rates and the availability of components.
The principles, objectives and organisation of the company's risk management as
well as key risk areas are described in the risk management section of the
Corporate Governance guidelines, which are available on the company's website at
www.pkcgroup.com.
OUTLOOK FOR THE FUTURE
There is cautious optimism in the European truck market. Signs of a gradual
recovery in the market are reflected in the fact that in the last quarter there
was an increase in orders for new trucks received by our main customers in
Europe and Latin America that exceeded the average production levels of 2009.
The production volumes of commercial vehicles are clearly increasing in Brazil.
We also estimate that demand for electronics design and manufacturing services
in the market will strengthen compared with last year. PKC's Electronics
business will probably see its most substantial growth this year in China.
We predict that the full-year net sales will increase moderately and that the
operating result will improve substantially on the previous year.
PKC's balance sheet, liquidity and good customer relationships will enable
improvement in PKC's relative competitive position.
THE BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF PROFITS
The parent company's distributable funds are EUR 50.9 million, of which the net
profit for the financial year is EUR 5.4 million. The Board of Directors will
propose to the Annual General Meeting to be held on 31 March 2010 that a
dividend of EUR 0.40 per share be paid for a total of EUR 7.1 million and that
the remainder of the distributable funds be transferred to shareholders' equity.
The record date for the dividend payout is 7 April 2010 and the payment date is
14 April 2010. In the view of the Board of Directors, the proposed dividend
payout will not put the company's liquidity at risk.
ANNUAL REPORT 2009 AND CORPORATE GOVERNANCE STATEMENT
PKC will publish its Annual Report for 2009, which contains the report by the
Board of Directors and financial statements, auditor's report and a separate
corporate governance statement on 10 March 2010 on its website at
www.pkcgroup.com.
ANNUAL GENERAL MEETING AND FINANCIAL REPORTS IN 2010
The Annual General Meeting of PKC Group Oyj will be held on Wednesday 31 March
2010 at 4:00 p.m., at the parent company's offices at Vihikari 10, Kempele.
In 2010, the Interim Reports will be published as follows:
Interim Report 1-3/2010 on Thursday 6 may 2010 at 8:15 a.m.
Interim Report 1-6/2010 on Thursday 5 August 2010 at 8:15 a.m.
Interim Report 1-9/2010 on Thursday 4 November 2010 at 8:15 a.m.
The text section of this financial statement bulletin focuses on the annual
accounts. Comparisons in accordance with IFRS standards have been made to the
figures in 2008 unless otherwise mentioned. The figures presented in the tables
are independently rounded figures.
TABLES
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF | 10-12/09 | 10-12/08 | 1-12/09 | 1-12/08 |
| COMPREHENSIVE INCOME (EUR 1,000) | 3 mon. | 3 mon. | 12 mon. | 12 mon. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 55,390 | 64,680 | 201,814 | 311,713 |
--------------------------------------------------------------------------------
| Other operating income | 753 | 416 | 2,253 | 1,304 |
--------------------------------------------------------------------------------
| Increase (+) / decrease (-) in | -1,298 | 1,853 | -9,319 | 71 |
| stocks of finished goods and | | | | |
| work in progress | | | | |
--------------------------------------------------------------------------------
| Materials and services | 29,343 | 38,303 | 106,346 | 172,198 |
--------------------------------------------------------------------------------
| Employee benefits expenses | 13,529 | 18,384 | 53,384 | 76,049 |
--------------------------------------------------------------------------------
| Depreciation | 2,606 | 2,083 | 10,982 | 8,177 |
--------------------------------------------------------------------------------
| Impairment loss for goodwill | 0 | 1,197 | 0 | 1,197 |
--------------------------------------------------------------------------------
| Other operating expenses | 6,735 | 10,910 | 23,355 | 34,427 |
--------------------------------------------------------------------------------
| OPERATING PROFIT/LOSS | 2,632 | -3,928 | 682 | 21,039 |
--------------------------------------------------------------------------------
| Financial income | 328 | 7,341 | 8,078 | 9,655 |
--------------------------------------------------------------------------------
| Financial expenses | -1,136 | -10,845 | -7,657 | -15,466 |
--------------------------------------------------------------------------------
| PROFIT/LOSS BEFORE TAXES | 1,824 | -7,432 | 1,103 | 15,228 |
--------------------------------------------------------------------------------
| Income tax | 1,421 | -2,032 | 1,246 | -9,661 |
--------------------------------------------------------------------------------
| PROFIT/LOSS FOR THE REPORT | 3,245 | -9,464 | 2,349 | 5,567 |
| PERIOD | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income: | | | | |
--------------------------------------------------------------------------------
| Exchange differences on | 1,062 | -1,510 | 443 | -1,500 |
| translating foreign operations | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for | 4,307 | -10,974 | 2,792 | 4,067 |
| the period: | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss attributable to: | | | | |
--------------------------------------------------------------------------------
| Shareholders of the parent | 3,245 | -9,474 | 2,349 | 5,519 |
| company | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0 | -10 | 0 | -47 |
--------------------------------------------------------------------------------
| Total | 3,245 | -9,465 | 2,349 | 5,566 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| From profit/loss attributable to | | | | |
| shareholders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Basic earnings per share (EPS), | 0.18 | -0.53 | 0.13 | 0.31 |
| EUR | | | | |
--------------------------------------------------------------------------------
Diluted earnings per share would exceed the basic earnings per share, so it is
not presented.
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF FINANCIAL | 12/09 | 12/08 |
| POSITION (EUR 1,000) | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Goodwill | 13,794 | 9,481 |
--------------------------------------------------------------------------------
| Other intangible assets | 11,955 | 14,694 |
--------------------------------------------------------------------------------
| Tangible assets | 34,378 | 34,929 |
--------------------------------------------------------------------------------
| Deferred tax assets | 4,804 | 1,623 |
--------------------------------------------------------------------------------
| Other receivables | 64 | 453 |
--------------------------------------------------------------------------------
| Non-current assets total | 64,995 | 61,179 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSSETS | | |
--------------------------------------------------------------------------------
| Inventory | 36,066 | 51,815 |
--------------------------------------------------------------------------------
| Receivables | | |
--------------------------------------------------------------------------------
| Trade receivables | 35,170 | 47,025 |
--------------------------------------------------------------------------------
| Other receivables | 8 291 | 14,948 |
--------------------------------------------------------------------------------
| Receivables total | 43,460 | 61,973 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 15,326 | 12,468 |
--------------------------------------------------------------------------------
| Current assets total | 94,852 | 126,256 |
--------------------------------------------------------------------------------
| ASSETS TOTAL | 159,847 | 187,435 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | |
--------------------------------------------------------------------------------
| EQUITY | | |
--------------------------------------------------------------------------------
| Share capital | 5,983 | 5,983 |
--------------------------------------------------------------------------------
| Share premium account | 4,862 | 4,862 |
--------------------------------------------------------------------------------
| Reserve fund | 370 | 370 |
--------------------------------------------------------------------------------
| Translation difference | -1,253 | -1,841 |
--------------------------------------------------------------------------------
| Share-based payments | 1,052 | 808 |
--------------------------------------------------------------------------------
| Retained earnings | 65,263 | 62,557 |
--------------------------------------------------------------------------------
| Profit/loss for the report period | 2,349 | 5,519 |
--------------------------------------------------------------------------------
| Minority interest | 0 | 328 |
--------------------------------------------------------------------------------
| EQUITY TOTAL | 78,626 | 78,584 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 34,630 | 40,120 |
--------------------------------------------------------------------------------
| Non-interest-bearing liabilities | | |
--------------------------------------------------------------------------------
| Provisions | 376 | 216 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 3,103 | 3,461 |
--------------------------------------------------------------------------------
| Non-current liabilities total | 38,110 | 43,797 |
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 8,940 | 31,866 |
--------------------------------------------------------------------------------
| Trade payables | 16,059 | 14,907 |
--------------------------------------------------------------------------------
| Other liabilities | 18,112 | 18,281 |
--------------------------------------------------------------------------------
| Current liabilities total | 43,111 | 65,055 |
--------------------------------------------------------------------------------
| Liabilities total | 81,221 | 108,851 |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES TOTAL | 159,847 | 187,390 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CASH FLOWS | 1-12/09 12 | 1-12/08 12 |
| (EUR 1,000) | mon. | mon. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from operating activities | | |
--------------------------------------------------------------------------------
| Cash receipts from customers | 213,077 | 326,650 |
--------------------------------------------------------------------------------
| Cash receipts from other operating | 2,693 | 1,304 |
| activities | | |
--------------------------------------------------------------------------------
| Cash paid to suppliers and employees | -166, 597 | -289,969 |
--------------------------------------------------------------------------------
| Cash flows from operations before financial | 49,173 | 37,985 |
| income and expenses and taxes | | |
--------------------------------------------------------------------------------
| Interest paid | -3,880 | -5,644 |
--------------------------------------------------------------------------------
| Interest received and other financial | 0 | 233 |
| income | | |
--------------------------------------------------------------------------------
| Income taxes paid | -2,817 | -7,275 |
--------------------------------------------------------------------------------
| Net cash from operating activities (A) | 42,476 | 25,299 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from investing activities | | |
--------------------------------------------------------------------------------
| Purchase of tangible and intangible assets | -3,989 | -9,906 |
--------------------------------------------------------------------------------
| Proceeds from sale of tangible and | 253 | 4 |
| intangible assets | | |
--------------------------------------------------------------------------------
| Investments | -453 | -21,589 |
--------------------------------------------------------------------------------
| Loans granted | -2 | -9 |
--------------------------------------------------------------------------------
| Amortisations of loan received | 38 | 44 |
--------------------------------------------------------------------------------
| Dividends received | 0 | 1 |
--------------------------------------------------------------------------------
| Net cash flows from investing activities | -4,153 | -31,455 |
| (B) | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows after investments | 38,323 | -6,156 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from financing activities | | |
--------------------------------------------------------------------------------
| Drawing of credits | 0 | 37,313 |
--------------------------------------------------------------------------------
| Amortisations of credits | -32,723 | -21,011 |
--------------------------------------------------------------------------------
| Dividends paid | -2,709 | -8,104 |
--------------------------------------------------------------------------------
| Net cash used in financing activities (C) | -35,432 | 8,199 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net increase (+) or decrease (-) in cash | 2,891 | 2,043 |
| and equivalents | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FINANCIAL INDICATORS | 1-12/09 12 | 1-12/08 12 |
| | mon. | mon. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, EUR 1,000 | 201,814 | 311,713 |
--------------------------------------------------------------------------------
| Operating profit/loss, EUR 1,000 | 682 | 21,039 |
--------------------------------------------------------------------------------
| % of net sales | 0.3 | 6.7 |
--------------------------------------------------------------------------------
| Profit/loss before taxes, EUR 1,000 | 1,103 | 15,228 |
--------------------------------------------------------------------------------
| % of net sales | 0.5 | 4.9 |
--------------------------------------------------------------------------------
| Net profit/loss for the period, EUR 1,000 | 2,349 | 5,519 |
--------------------------------------------------------------------------------
| % of net sales | 1.2 | 1.8 |
--------------------------------------------------------------------------------
| Return on equity (ROE), % | 3.0 | 6.9 |
--------------------------------------------------------------------------------
| Return on investments (ROI), % | 6.4 | 20.8 |
--------------------------------------------------------------------------------
| Net liabilities, EUR 1,000 | 28,245 | 59,518 |
--------------------------------------------------------------------------------
| Gearing, % | 35.9 | 75.8 |
--------------------------------------------------------------------------------
| Equity ratio, % | 49.2 | 41.9 |
--------------------------------------------------------------------------------
| Current ratio, % | 2.2 | 1.9 |
--------------------------------------------------------------------------------
| Gross capital expenditure, EUR 1,000 | 3,894 | 27,426 |
--------------------------------------------------------------------------------
| % of net sales | 1.9 | 8.8 |
--------------------------------------------------------------------------------
| R&D expenditures, EUR 1,000 | 5,518 | 5,812 |
--------------------------------------------------------------------------------
| % of net sales | 2.7 | 1.9 |
--------------------------------------------------------------------------------
| Personnel average | 4,478 | 5,588 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PER-SHARE KEY FIGURES | 1-12/09 12 | 1-12/08 12 |
| | mon. | mon. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | 0.13 | 0.31 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 4.42 | 4.41 |
--------------------------------------------------------------------------------
| Share price at close of period, EUR | 6.60 | 3.25 |
--------------------------------------------------------------------------------
| Lowest share price, EUR | 2.70 | 2.82 |
--------------------------------------------------------------------------------
| Highest share price, EUR | 6.83 | 9.48 |
--------------------------------------------------------------------------------
| Average share price, EUR | 4.38 | 6.56 |
--------------------------------------------------------------------------------
| Turnover in shares, 1,000 shares | 8,655 | 12,941 |
--------------------------------------------------------------------------------
| Turnover in shares per (share issue | 48.7 | 72.8 |
| adjusted) share capital, % | | |
--------------------------------------------------------------------------------
| Average number of shares, 1,000 shares | 17,782 | 17,782 |
--------------------------------------------------------------------------------
| Average number of shares, diluted, 1,000 | 1 6,690 | 17,782 |
| shares | | |
--------------------------------------------------------------------------------
| Shares at end of period, 1,000 shares | 17,782 | 17,782 |
--------------------------------------------------------------------------------
| Market capitalisation, EUR 1,000 | 117,358 | 57,790 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1. SEGMENT INFORMATION | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1.1.-31.12.2009 (EUR 1,000) | Wiring | Electronic | Eliminations | Group |
| | Harness | s | | Total |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales to external customers | 149,316 | 52,497 | | 201,814 |
--------------------------------------------------------------------------------
| Sales to other segment's | 227 | 107 | -334 | 0 |
--------------------------------------------------------------------------------
| Net sales to other | 149,544 | 52,604 | -334 | 201,814 |
| segments, EUR 1,000 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit/loss | -3,894 | 4,575 | 0 | 682 |
--------------------------------------------------------------------------------
| % of net sales | -2.6 | 8.7 | | 0.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's assets | 100,191 | 43,706 | 11,146 | 155,043 |
--------------------------------------------------------------------------------
| Unallocated assets *) | | | | 4,804 |
--------------------------------------------------------------------------------
| Assets total | 100,191 | 43,706 | 11,146 | 159,847 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| * Segment's assets do not include deferred taxes |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1.1.-31.12.2008 (EUR 1,000) | Wiring | Electronic | Eliminations | Group |
| | Harness | s | | Total |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales to external customers | 246,487 | 65,226 | | 311,713 |
--------------------------------------------------------------------------------
| Sales to other segment's | 193 | 671 | -864 | 0 |
--------------------------------------------------------------------------------
| Net sales to other | 246,680 | 65,897 | -864 | 311,713 |
| segments, EUR 1,000 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit/loss | 9,744 | 11,295 | 0 | 21,039 |
--------------------------------------------------------------------------------
| % of net sales | 4.0 | 17.3 | | 6.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's assets | 152,765 | 38,044 | -4,994 | 185,814 |
--------------------------------------------------------------------------------
| Unallocated assets *) | | | | 1,623 |
--------------------------------------------------------------------------------
| Assets total | 152,765 | 38,044 | -4,994 | 187,437 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| * Segment's assets do not include deferred taxes |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY GEOGRAPHICAL | 10-12/0 | 10-12/08 | 1-12/09 | 1-12/08 |
| SEGMENTS (EUR 1,000) | 9 3 | 3 mon. | 12 mon. | 12 mon. |
| | mon. | | | |
--------------------------------------------------------------------------------
| Finland | 10,508 | 13,103 | 40,494 | 58,621 |
--------------------------------------------------------------------------------
| Other Europe | 25,538 | 29,717 | 99,928 | 151,701 |
--------------------------------------------------------------------------------
| North America | 4,443 | 7,135 | 18,870 | 33,427 |
--------------------------------------------------------------------------------
| South America | 10,478 | 10,501 | 26,526 | 48,510 |
--------------------------------------------------------------------------------
| Other Countries | 4,423 | 4,224 | 15,995 | 19,453 |
--------------------------------------------------------------------------------
| Total | 55,390 | 64,680 | 201,814 | 311,713 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2. RECONCILIATION OF EQUITY | | | | | | |
| (EUR million | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| A = Share Capital | | | | | | |
--------------------------------------------------------------------------------
| B = Share premium account | | | | | | |
--------------------------------------------------------------------------------
| C = Fair value and other | | | | | | |
| reserves | | | | | | |
--------------------------------------------------------------------------------
| D = Retained earnings | | | | | | |
--------------------------------------------------------------------------------
| E = Minority interest | | | | | | |
--------------------------------------------------------------------------------
| F = Total equity | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | A | B | C | D | E | F |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity | 6.0 | 4.9 | 0.2 | 71.1 | 0.8 | 83.0 |
| 1.1.2008 | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss for the period | 0.0 | 0.0 | 0.0 | 5.5 | 0.0 | 5.5 |
--------------------------------------------------------------------------------
| Dividends | 0.0 | 0.0 | 0.0 | -8.0 | -0.1 | -8.1 |
--------------------------------------------------------------------------------
| Share options used | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Translation differences | 0.0 | 0.0 | 0.0 | -1.5 | 0.0 | -1.5 |
--------------------------------------------------------------------------------
| Other changes | 0.0 | 0.0 | 0.1 | 0.0 | -0.5 | -0.3 |
--------------------------------------------------------------------------------
| Shareholders' equity | 6.0 | 4.9 | 0.4 | 67.1 | 0.3 | 78.6 |
| 31.12.2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity | 6.0 | 4.9 | 0.4 | 67.1 | 0.3 | 78.6 |
| 1.1.2009 | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss for the period | 0.0 | 0.0 | 0.0 | 2.3 | 0.0 | 2.3 |
--------------------------------------------------------------------------------
| Dividends | 0.0 | 0.0 | 0.0 | -2.7 | 0.0 | -2.7 |
--------------------------------------------------------------------------------
| Share-based payments | 0.0 | 0.0 | 0.0 | 0.3 | 0.0 | 0.3 |
--------------------------------------------------------------------------------
| Translation differences | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Acquisitions of minority | 0.0 | 0.0 | 0.0 | 0.3 | -0.3 | 0.0 |
| interest | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | 6.0 | 4.9 | 0.4 | 67.4 | 0.0 | 78.6 |
| 31.12.2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. CONTINGENT LIABILITIES AT END OF | 12/09 | 12/08 | | |
| PERIOD (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing liabilities | 3,027 | 11,745 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities for derivate | | | | |
| instruments | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values | | | | |
--------------------------------------------------------------------------------
| Currency derivates | | | | |
--------------------------------------------------------------------------------
| Forward contracts | 0 | 3,307 | | |
--------------------------------------------------------------------------------
| Option agreements | | | | |
--------------------------------------------------------------------------------
| Call | 1,187 | 757 | | |
--------------------------------------------------------------------------------
| Total | 1,187 | 4,064 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair values | | | | |
--------------------------------------------------------------------------------
| Currency derivates | | | | |
--------------------------------------------------------------------------------
| Forward contracts | 0 | -195 | | |
--------------------------------------------------------------------------------
| Option agreements | | | | |
--------------------------------------------------------------------------------
| Call | 83 | 0 | | |
--------------------------------------------------------------------------------
| Total | 83 | -195 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency derivates are used only in hedging currency risks. PKC Group does |
| not apply hedge accounting to derivate instruments in accordance with IAS |
| 39. Fair values of the derivates are entered directly in the income |
| statement. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. QUARTERLY KEY | 7-9/08 | 10-12/0 | 1-3/09 | 4-6/09 | 7-9/09 | 10-12/09 |
| FIGURES, | 3 mon. | 8 3 | 3 mon. | 3 mon. | 3 mon. | 3 mon. |
| CONSOLIDATED | | mon. | | | | |
--------------------------------------------------------------------------------
| Net sales, EUR | 73.4 | 64.7 | 53.8 | 45.8 | 46.8 | 55.4 |
| million | | | | | | |
--------------------------------------------------------------------------------
| Operating | 6.0 | -3.9 | 0.1 | -5.6 | 3.6 | 2.6 |
| profit/loss, EUR | | | | | | |
| million | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 8.2 | -6.1 | 0.2 | -12.2 | 7.6 | 4.8 |
--------------------------------------------------------------------------------
| Profit/loss | 5.5 | -7.4 | -1.9 | -4.5 | 5.7 | 1.8 |
| before taxes, EUR | | | | | | |
| million | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 7.6 | -11.5 | -3.5 | -9.9 | 12.2 | 3.3 |
--------------------------------------------------------------------------------
| Equity ratio, % | 50.0 | 41.9 | 42.9 | 42.5 | 46.7 | 49.2 |
--------------------------------------------------------------------------------
| Earnings per | 0.2 | -0.5 | -0.2 | -0.3 | 0.4 | 0.2 |
| share (EPS), | | | | | | |
| diluted (EUR) | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 5.1 | 4.4 | 4.1 | 3.8 | 4.2 | 4.4 |
| equity per share, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY KEY | | | | | | |
| FIGURES, WIRING | | | | | | |
| HARNESSESS | | | | | | |
--------------------------------------------------------------------------------
| Net sales, EUR | 57.0 | 50.8 | 41.7 | 33.1 | 34.2 | 40.3 |
| million | | | | | | |
--------------------------------------------------------------------------------
| Operating | 3.9 | -6.2 | -0.6 | -6.3 | 2.0 | 1.0 |
| profit/loss, EUR | | | | | | |
| million | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 6.8 | -12.2 | -1.4 | -19.0 | 5.9 | 2.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY KEY | | | | | | |
| FIGURES, | | | | | | |
| ELECTRONICS | | | | | | |
--------------------------------------------------------------------------------
| Net sales, EUR | 16.4 | 13.9 | 12.1 | 12.7 | 12.7 | 15.1 |
| million | | | | | | |
--------------------------------------------------------------------------------
| Operating | 2.1 | 2.3 | 0.7 | 0.7 | 1.6 | 1.7 |
| profit/loss, EUR | | | | | | |
| million | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 13.1 | 16.4 | 5.7 | 5.4 | 12.2 | 11.0 |
--------------------------------------------------------------------------------
CALCULATION OF INDICATORS
Return on equity (ROE), %
= 100 x Profit/loss / Shareholders' equity (average)
Return on investments (ROI), %
= 100 x (Profit/loss + taxes + financial expenses) / Shareholders' equity +
interest-bearing liabilities (average)
Gearing, %
= 100 x (Interest-bearing liabilities - cash in hand and at bank and
investments) / Shareholders' equity + minority interest
Equity ratio, %
= 100 x (Shareholders' equity + minority interest) / Balance sheet total -
advance payments received
Quick ratio
= Receivables and cash in hand and at bank / Current liabilities - advance
payments received
Current ratio
Receivables and cash in hand and at bank + inventories / Current liabilities
Earnings per share (EPS), EUR
Profit/loss +/- minority interest / Average share issue-adjusted number of
shares
Shareholders' equity per share, EUR
Shareholders' equity / Share issue-adjusted number of shares on the balance
sheet date
Market capitalisation
Number of shares at the end of the financial period x the last trading price of
the financial period
The figures have been audited. The financial statements have been prepared in
accordance with IFRS standards.
All the future estimates and forecasts presented in this stock exchange release
are based on the best current knowledge of the company's management. The
estimates and forecasts contain certain elements of risk and uncertainty which,
if they materialise, may lead to results that differ from present estimates. The
main factors of uncertainty are related, among other things, to the general
economic situation, the trend in the operating environment and the sector as
well as the success of the Group's strategy.
PKC GROUP OYJ
Board of Directors
Harri Suutari
President and CEO
For additional information, contact:
Harri Suutari, President & CEO, PKC Group Oyj, +358 400 384 937
PRESS CONFERENCE
A press conference on the Interim Report will be arranged for analysts and
investors today, 18 February 2010, at 10.00 a.m., at the address World Trade
Center, Aleksanterinkatu 17, meeting room 4, 2nd floor, Helsinki.
DISTRIBUTION
NASDAQ OMX
Main media
www.pkcgroup.com
