Salcomp Plc Interim Report 12 August 2008 at 8:15 Finnish time
Salcomp Plc Interim Report 1 January-30 June 2008
GROWTH CONTINUED - OPERATING PROFIT CLEARLY WEAKENED
April - June 2008:
-Net sales grew by 4% to EUR 72.1 million.
-Number of chargers delivered increased by 13% to 71.6 million pieces.
-Market share in mobile phone chargers weakened by one percentage unit to some
23%.
-Operating profit weakened by 48% to EUR 3.2 million.
-Earnings per share, excluding the deferred tax, decreased by 62% to EUR 0.05.
-Cash flow from operating activities, excluding the change in selling of
receivables, was EUR 5.9 million positive.
January - June 2008:
-Net sales grew by 5% to EUR 138.9 million.
-Number of chargers delivered grew by 13% to 135.0 million pieces.
-Operating profit weakened by 29% to EUR 8.0 million.
-Earnings per share, excluding the deferred tax, decreased by 54% to EUR 0.11.
-Cash flow from operating activities, excluding the change in selling of
receivables, was EUR 9.4 million positive.
Outlook for the rest of the year:
-Net sales in 2008 are expected to grow compared with 2007, but the operating
profit in value is expected to be below the 2007 level.
Markku Hangasjärvi, President and CEO:
“The number of chargers we delivered grew by 13% in the second quarter of the
year compared with the corresponding period last year. However, our net sales
grew at a moderate pace, due to the decline in sales prices. The decline in
sales prices, changes in product mix consisting of more lower margin products
and material costs which decreased more slowly than targeted burdened the
operating profit compared with the corresponding period last year. In addition,
the operating profit was burdened by higher fixed costs related to capacity
increase at the Indian plant.
According to market research institutes, some 300 million mobile phones were
sold during the second quarter of the year, up 16% compared with the
corresponding quarter last year. Our market share in the mobile phone chargers,
some 23%, was down with one percentage unit compared with the corresponding
quarter last year. However, our market share grew by two percentage units from
the first quarter of the year.
According to estimates published by some of our key customers and the various
market research companies, the mobile phone market is estimated to grow by some
10% in 2008. We believe that our efforts to seek growth from the mobile phone
market and new charger segments, together with the stable market development,
will form a good basis to achieve further growth in our net sales in 2008. In
order to improve our profitability from the second quarter level, we aim to
achieve better product cost structures, reduce our fixed costs and enhance the
productivity.”
Financial development in April - June 2008
Salcomp's net sales increased by 4% in April-June to EUR 72.1 million (EUR 69.5
million in 4-6/2007). The increase resulted from the number of chargers
delivered rising by 13% to 71.6 million (63.4 million) pieces. The market share
in mobile phone chargers was approximately 23% (about 24%).
Operating profit decreased to EUR 3.2 million (EUR 6.0 million). Profitability
was weakened by a lower gross margin compared with the comparison period due to
decline in sales prices and changes in the product mix, as well as material
costs which decreased more slowly than targeted. In addition, the operating
profit was burdened by higher fixed costs related to capacity increase at the
Indian plant. The operating profit includes EUR 0.1 million profit from the sale
of the Kemijärvi real estate in June, as well as EUR 0.2 million of losses due
to the unrealized exchange rate differences in intra-group accounts payable.
The Group's net financial expenses were EUR 0.4 million (EUR 0.4 million). The
financial expenses for the second quarter include EUR 0.1 million profit (EUR
0.7 million profit) due to the unrealized exchange rate differences in
intra-group loans.
The second-quarter net result amounted to EUR 1.3 million (EUR 4.6 million).
Earnings per share were EUR 0.03 (EUR 0.12) and earnings per share, excluding
the deferred tax, EUR 0.05 (EUR 0.13). Basic earnings per share were EUR 0.03
(EUR 0.12).
Cash flow from operating activities was EUR 7.3 million positive (EUR 6.7
million positive) due to a decrease in the working capital. Cash flow from
operating activities, excluding the change in selling of receivables, was EUR
5.9 million positive (EUR 1.5 million positive).
Financial development in January - June 2008
Net sales increased by 5% in January-June to EUR 138.9 million (EUR 131.7
million in 1-6/2007). The number of chargers delivered increased by 13% to 135.0
million (119.4 million) pieces.
The Group's operating profit in January-June totaled EUR 8.0 million (EUR 11.2
million). Profitability was weakened due to decline in sales prices and changes
in the product mix, as well material costs which decreased more slowly than
targeted. In addition, the operating profit was burdened by higher fixed costs
related to the capacity increase at the India plant.
The Group's net financial expenses were EUR 2.6 million (EUR 1.2 million). The
financial expenses for the period include EUR 1.2 million (EUR 0.9 million
profit) of losses due to the unrealized exchange rate differences in intra-group
loans. Taxes for the period totaled EUR 2.5 million (EUR 1.9 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.
Salcomp's net result totaled EUR 2.8 million (EUR 8.0 million). Earnings per
share were EUR 0.07 (EUR 0.21) and earnings per share, excluding the deferred
tax, amounted to EUR 0.11 (EUR 0.24). Basic earnings per share were EUR 0.07
(EUR 0.21).
R&D and capital expenditure
In January-June the Group's R&D expenditure was EUR 2.7 million (EUR 2.3
million), or 2.0% (1.8%) of net sales. The increase in expenditure was due to
the higher number of R&D personnel. R&D focused on developing new products for
current and new customers, and constant improvement in the cost structure of
existing products.
Capital expenditure in January-June amounted to EUR 2.4 million (EUR 6.8
million). The capital expenditure mainly involved boosting the production
capacity.
Financing
Cash flow from operating activities in January-June amounted to EUR 4.4 million
positive (EUR 17.1 million positive). The cash flow from operating activities,
excluding the change in selling of receivables, was EUR 9.4 million positive
(EUR 6.2 million positive).
The Group's equity ratio at the end of June was 37.4% (35.1%) and gearing was
38.4% (60.1%). Net interest-bearing debt totaled EUR 25.5 million (EUR 35.4
million) at the end of the period.
Personnel
The Group employed 10,117 (7,697) people at the end of June: some 6,500 in
China, 1,800 in Brazil and 1,700 in India.
Shares and shareholders
Salcomp's share price fluctuated between EUR 3.15 and EUR 4.17 in January-June.
The closing price at the end of June was EUR 3.50. Share trading amounted to EUR
34.4 million and 9.6 million shares. According to the book-entry system, Salcomp
had 1,216 shareholders at the end of the period. Foreign ownership at the end of
June was 75.3% and the market value EUR 136 million.
In early May, Salcomp's Board of Directors decided to grant a total of 657,500
stock options 2007B to the Group's key employees.
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 the competition in the mobile phone charger markets, and
the standardization of mobile phone chargers, including USB-type chargers.
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 a
substantial uncertainty factor 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. 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 2007.
Outlook for rest of the year
According to the estimates published by some of Salcomp's key customers and by
the various market research companies, the mobile phone market is expected to
grow by approximately 10% during 2008, compared with 2007. The expected growth
forms a good basis to achieve further increases in Salcomp's net sales in 2008.
In addition, Salcomp's target is to broaden the customer portfolio in other
selected charger segments, such as bluetooth headsets and cordless fixed-line
phones.
Net sales in 2008 are expected to grow compared with 2007, but the operating
profit in value is expected to be below the 2007 level.
In order to improve the profitability from the second quarter level, several
actions are on going to achieve better product cost structures, reduce fixed
costs and enhance the productivity.
Helsinki, 12 August 2008
Salcomp Plc
Board of Directors
Further information:
Markku Hangasjärvi, President and CEO, tel. +358 40 7310 114
Antti Salminen, CFO, tel. +358 40 535 1216
The briefing for analysts and media will be held on 12 August 2008 at 12:00
Finnish time at Hotel Scandic Simonkenttä, Simonkatu 9, Helsinki.
Salcomp's Interim Report for January - September 2008 will be published on 31
October 2008.
This interim report has been prepared in accordance with the IFRS and IAS34,
following the principles for recognition and measurement set out in IAS34, as
well as the accounting principles described in the Annual Report. The report has
not been audited.
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| | 1-6/ | 1-6/ | Change | 1-12/ |
| | 2008 | 2007 | % | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 138 947 | 131 748 | 5.5% | 286 231 |
--------------------------------------------------------------------------------
| Cost of sales | -122 821 | -113 172 | 8.5% | -244 785 |
--------------------------------------------------------------------------------
| Gross margin | 16 126 | 18 576 | -13.2% | 41 446 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Other operating income | 213 | 294 | -27.6% | 482 |
--------------------------------------------------------------------------------
| Sales and marketing | -1 180 | -1 174 | 0.5% | -2 471 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Administrative | -4 478 | -4 175 | 7.3% | -8 701 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Research and | -2 728 | -2 343 | 16.4% | -4 845 |
| development | | | | |
| expenses | | | | |
--------------------------------------------------------------------------------
| Other operating | 0 | -8 | | -117 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Operating profit | 7 953 | 11 170 | -28.8% | 25 794 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Financial income | 353 | 891 | -60.4% | 958 |
--------------------------------------------------------------------------------
| Financial expenses | -2 985 | -2 108 | 41.6% | -4 203 |
--------------------------------------------------------------------------------
| Profit before tax | 5 321 | 9 953 | -46.5% | 22 549 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Income tax expense | -2 476 | -1 905 | 30.0% | -4 281 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 2 845 | 8 048 | -64.6% | 18 268 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Basic earnings per | 0.07 | 0.21 | -66.7% | 0.47 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0.07 | 0.21 | -66.7% | 0.47 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | |
| (EUR 1 000) | | | |
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | Change |
| | 2008 | 2007 | % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 72 113 | 69 475 | 3.8% |
--------------------------------------------------------------------------------
| Cost of sales | -64 620 | -59 172 | 9.2% |
--------------------------------------------------------------------------------
| Gross margin | 7 493 | 10 303 | -27.3% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Other operating income | 125 | 55 | 127.3% |
--------------------------------------------------------------------------------
| Sales and marketing expenses | -602 | -630 | -4.4% |
--------------------------------------------------------------------------------
| Administrative expenses | -2 356 | -2 272 | 3.7% |
--------------------------------------------------------------------------------
| Research and development | -1 492 | -1 400 | 6.6% |
| expenses | | | |
--------------------------------------------------------------------------------
| Other operating expenses | 0 | -8 | -100.0% |
--------------------------------------------------------------------------------
| Operating profit | 3 168 | 6 048 | -47.6% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Financial income | 154 | 640 | -75.9% |
--------------------------------------------------------------------------------
| Financial expenses | -527 | -1 063 | -50.4% |
--------------------------------------------------------------------------------
| Profit before tax | 2 795 | 5 625 | -50.3% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Income tax expense | -1 541 | -1 018 | 51.4% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Profit for the period | 1 254 | 4 607 | -72.8% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0.03 | 0.12 | -75.0% |
--------------------------------------------------------------------------------
| Diluted earnings per share, EUR | 0.03 | 0.12 | -75.0% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| | 30.6.2008 | 30.6.2007 | Change % | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 22 997 | 24 779 | -7.2% | 24 808 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Goodwill | 66 412 | 66 412 | 0.0% | 66 412 |
--------------------------------------------------------------------------------
| Other intangible assets | 592 | 372 | 59.0% | 481 |
--------------------------------------------------------------------------------
| Deferred tax assets | 3 193 | 3 013 | 6.0% | 3 184 |
--------------------------------------------------------------------------------
| | 93 194 | 94 576 | -1.5% | 94 885 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 26 005 | 22 443 | 15.9% | 24 114 |
--------------------------------------------------------------------------------
| Trade and other | 47 974 | 44 069 | 8.9% | 48 475 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 11 284 | 7 215 | 56.4% | 14 611 |
| equivalents | | | | |
--------------------------------------------------------------------------------
| | 85 263 | 73 727 | 15.6% | 87 200 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total assets | 178 457 | 168 303 | 6.0% | 182 085 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and liabilities | | | | |
--------------------------------------------------------------------------------
| Share capital | 9 833 | 9 833 | 0.0% | 9 833 |
--------------------------------------------------------------------------------
| Premium fund | 0 | 22 035 | -100.0% | 0 |
--------------------------------------------------------------------------------
| Invested unrestricted | 22 035 | 0 | | 22 035 |
| equity | | | | |
--------------------------------------------------------------------------------
| Retained earnings | 34 503 | 26 973 | 27.9% | 36 773 |
--------------------------------------------------------------------------------
| | 66 371 | 58 841 | 12.8% | 68 641 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 13 763 | 10 387 | 32.5% | 12 075 |
--------------------------------------------------------------------------------
| Interest-bearing | 21 904 | 33 173 | -34.0% | 28 542 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Provisions | 0 | 40 | -100.0% | 40 |
--------------------------------------------------------------------------------
| | 35 667 | 43 600 | -18.2% | 40 657 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 61 538 | 56 457 | 9.0% | 63 382 |
--------------------------------------------------------------------------------
| Interest-bearing current | 14 881 | 9 405 | 58.2% | 9 405 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | 76 419 | 65 862 | 16.0% | 72 787 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total equity and | 178 457 | 168 303 | 6.0% | 182 085 |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| (EUR 1 000) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to equity holders of the parent |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Share | Premium | Invested | Trans-la | Retained | Total |
| | capital | fund | unrest-r | tion | earnings | equity |
| | | | icted | differen | | |
| | | | equity | ces | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at | 9 833 | 22 035 | 0 | 226 | 20 887 | 52 981 |
| January 1, | | | | | | |
| 2007 | | | | | | |
--------------------------------------------------------------------------------
| | Translat | 0 | 0 | 0 | 108 | 0 | 108 |
| | ion | | | | | | |
| | differen | | | | | | |
| | ces | | | | | | |
--------------------------------------------------------------------------------
| | Profit | 0 | 0 | 0 | 0 | 8 048 | 8 048 |
| | for | | | | | | |
| | the | | | | | | |
| | period | | | | | | |
--------------------------------------------------------------------------------
| | Total | 0 | 0 | 0 | 108 | 8 048 | 8 156 |
| | recogniz | | | | | | |
| | ed | | | | | | |
| | income | | | | | | |
| | and | | | | | | |
| | expense | | | | | | |
| | for the | | | | | | |
| | period | | | | | | |
--------------------------------------------------------------------------------
| | Option | 0 | 0 | 0 | 0 | 43 | 43 |
| | costs | | | | | | |
--------------------------------------------------------------------------------
| | Dividend | 0 | 0 | 0 | 0 | -2 339 | -2 339 |
| | s | | | | | | |
--------------------------------------------------------------------------------
| Equity at | 9 833 | 22 035 | 0 | 334 | 26 639 | 58 841 |
| June 30, | | | | | | |
| 2007 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at | 9 833 | 0 | 22 035 | -219 | 36 992 | 68 641 |
| January 1, | | | | | | |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
| | Translat | 0 | 0 | 0 | 546 | 0 | 546 |
| | ion | | | | | | |
| | differen | | | | | | |
| | ces | | | | | | |
--------------------------------------------------------------------------------
| | Profit | 0 | 0 | 0 | 0 | 2 845 | 2 845 |
| | for | | | | | | |
| | the | | | | | | |
| | period | | | | | | |
--------------------------------------------------------------------------------
| | Total | 0 | 0 | 0 | 0 | 0 | 0 |
| | recogniz | | | | | | |
| | ed | | | | | | |
| | income | | | | | | |
| | and | | | | | | |
| | expense | | | | | | |
| | for the | | | | | | |
| | period | | | | | | |
--------------------------------------------------------------------------------
| | Option | 0 | 0 | 0 | 0 | 185 | 185 |
| | costs | | | | | | |
--------------------------------------------------------------------------------
| | Dividend | 0 | 0 | 0 | 0 | -5 846 | -5 846 |
| | s | | | | | | |
--------------------------------------------------------------------------------
| Equity at | 9 833 | 0 | 22 035 | 327 | 34 176 | 66 371 |
| June 30, | | | | | | |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| | 1-6/ | 1-6/ | Change | 1-12/ |
| | 2008 | 2007 | % | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before change in | 10 546 | 13 613 | -22.5% | 30 690 |
| working capital | | | | |
--------------------------------------------------------------------------------
| Change in working capital | -4 744 | 5 445 | -187.1% | 9 625 |
--------------------------------------------------------------------------------
| Financial items and taxes | -1 392 | -1 948 | -28.5% | -3 723 |
--------------------------------------------------------------------------------
| Net cash flow from operating | 4 410 | 17 110 | -74.2% | 36 592 |
| activities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Purchases | -1 966 | -6 145 | -68.0% | -11 053 |
--------------------------------------------------------------------------------
| Sales | 54 | 2 | 2600.0% | 86 |
--------------------------------------------------------------------------------
| Cash flows from investing | -1 912 | -6 143 | -68.9% | -10 967 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before financing | 2 498 | 10 967 | -77.2% | 25 625 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Withdrawal of borrowings | 4 226 | 5 000 | -15.5% | 5 000 |
--------------------------------------------------------------------------------
| Repayment of borrowings | -5 515 | -14 861 | -62.9% | -19 611 |
--------------------------------------------------------------------------------
| Dividends | -5 846 | -2 339 | 149.9% | -2 339 |
--------------------------------------------------------------------------------
| Net cash flow from financing | -7 135 | -12 200 | -41.5% | -16 950 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash | -3 327 | -630 | 428.1% | 6 766 |
| equivalents | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 14 611 | 7 845 | 86.2% | 7 845 |
| at the beginning of the period | | | | |
--------------------------------------------------------------------------------
| Translation correction to | 1 310 | 603 | 117.2% | -1 909 |
| cash and cash equivalents | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 11 284 | 7 215 | 56.4% | 14 611 |
| at the end of the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | | | | |
--------------------------------------------------------------------------------
| | 1-6/ | 1-6/ | Change | 1-12/ |
| | 2008 | 2007 | % | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sold chargers, Mpcs | 135.0 | 119.0 | 13.4% | 262.4 |
--------------------------------------------------------------------------------
| Average sales price, | 1.03 | 1.11 | -7.3% | 1.09 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, MEUR | 138.9 | 131.7 | 5.5% | 286.2 |
--------------------------------------------------------------------------------
| EBITDA, MEUR | 10.5 | 13.6 | -22.6% | 30.6 |
--------------------------------------------------------------------------------
| EBITDA%, % | 7.6% | 10.3% | | 10.7 % |
--------------------------------------------------------------------------------
| Operating profit, | 8.0 | 11.2 | -29.0% | 25.8 |
| MEUR | | | | |
--------------------------------------------------------------------------------
| Operating profit | 5.7% | 8.5% | | 9.0 % |
| percentage, % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per | 0.07 | 0.21 | -66.7% | 0.47 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0.07 | 0.21 | -66.7% | 0.47 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share | 0.11 | 0.24 | -54.2% | 0.54 |
| excluding deferred | | | | |
| tax, EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share, | 1.70 | 1.51 | 12.6% | 1.76 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, % | 8.4% | 28.8% | | 30.0 % |
--------------------------------------------------------------------------------
| Return on capital | 15.8% | 23.4% | | 25.3 % |
| employed, % | | | | |
--------------------------------------------------------------------------------
| Return on net | 45.1% | 62.0% | | 72.3 % |
| assets, % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 37.4% | 35.1% | | 37.7 % |
--------------------------------------------------------------------------------
| Gearing, % | 38.4% | 60.1% | | 34.0 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure, | 2.4 | 6.8 | -64.7% | 11.3 |
| MEUR | | | | |
--------------------------------------------------------------------------------
| Capital expenditure, | 1.7% | 5.1% | | 3.9 % |
| % of net sales | | | | |
--------------------------------------------------------------------------------
| Personnel on average | 10 165 | 7 683 | 32.3% | 8 622 |
--------------------------------------------------------------------------------
| Personnel at end of | 10 117 | 7 697 | 31.4% | 9 722 |
| 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 | 39 076 016 | 38 988 207 | | 39 075 819 |
| shares on average | | | | |
--------------------------------------------------------------------------------
| Highest share price, | 4.17 | 4.89 | | 5.03 |
| EUR | | | | |
--------------------------------------------------------------------------------
| Lowest share price, | 3.15 | 2.63 | | 2.63 |
| EUR | | | | |
--------------------------------------------------------------------------------
| Average share price, | 3.60 | 3.50 | | 3.76 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Traded shares, Mpcs | 9.6 | 11.5 | | 19.0 |
--------------------------------------------------------------------------------
| Traded shares, MEUR | 34.4 | 40.6 | | 72.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES | | | | |
| (EUR 1 000) | | | | |
--------------------------------------------------------------------------------
| | 30.6.2008 | 30.6.2007 | Change % | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| For own debt | | | | |
--------------------------------------------------------------------------------
| | Company and | 170 000 | 170 000 | 0.0% | 170 000 |
| | real estate | | | | |
| | mortgages | | | | |
--------------------------------------------------------------------------------
| | Others | 5 | 364 | -98.6% | 209 |
--------------------------------------------------------------------------------
| Leasing and rental | 10 451 | 2 295 | 355.4% | 8 311 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | 180 456 | 172 659 | 4.5% | 178 520 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY INFORMATION |
--------------------------------------------------------------------------------
| | 4-6/08 | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 7/07- |
| | | 08 | 07 | 07 | 07 | 6/08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sold | 71 598 | 63 451 | 81 534 | 61 827 | 63 363 | 278 410 |
| chargers, | | | | | | |
| kpcs | | | | | | |
--------------------------------------------------------------------------------
| Net sales, | 72 113 | 66 834 | 84 005 | 70 478 | 69 475 | 293 430 |
| kEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating | 3 168 | 4 785 | 8 324 | 6 300 | 6 048 | 22 577 |
| profit, | | | | | | |
| kEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating | 4.4% | 7.2% | 9.9% | 8.9% | 8.7% | 7.7% |
| profit | | | | | | |
| percentage, | | | | | | |
| % | | | | | | |
--------------------------------------------------------------------------------
| Average | 1.01 | 1.05 | 1.03 | 1.14 | 1.10 | 1.05 |
| sales | | | | | | |
| price, EUR | | | | | | |
--------------------------------------------------------------------------------
OPTION RIGHTS
During the financial year 2007 the General Meeting of Shareholders established
an option program with totally 2,047,500 option rights that entitles 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, during
the financial year, granted option rights (2007B) to the Group key personnel
totaling 657,500 pcs. The share based incentives are conditional. The vesting
conditions (relating to symbols 2007A and 2007B) are based on that the total
shareholder return is at least 8% per annum. 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 by using the
Cox-Ross-Rubinstein binomial model.
--------------------------------------------------------------------------------
| Program symbol | 2007A | 2007B | 2007C |
--------------------------------------------------------------------------------
| Number of | 657 500 | 682 500 | 707 500 |
| options | | | |
--------------------------------------------------------------------------------
| Vesting period | 1.4.2007- | 1.4.2008- | 1.4.2009- |
| | 31.3.2010 | 31.3.2011 | 31.3.2012 |
--------------------------------------------------------------------------------
| Options granted | 610 000 | 0 | 0 |
| before the | | | |
| current | | | |
| financial year | | | |
--------------------------------------------------------------------------------
| Options granted | 0 | 657 500 | 0 |
| during the | | | |
| current | | | |
| financial year | | | |
--------------------------------------------------------------------------------
| Options | -5 000 | 0 | 0 |
| forfeited during | | | |
| the current | | | |
| financial year | | | |
--------------------------------------------------------------------------------
| Settlement | 1 | 1 | 1 |
| (shares / | | | |
| option) | | | |
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| Settlement | 1.4.2010- | 1.4.2011- | 1.4.2012- |
| period | 31.3.2012 | 31.3.2013 | 31.3.2014 |
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| Grant date | 02.05.07 | 07.05.08 | |
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| Exercise price | 2.88 | 3.40 | |
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| Share price at | 3.51 | 3.79 | |
| grant date | | | |
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| The fair value | 1.44 | 1.44 | |
| of option at | | | |
| grant date | | | |
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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
financial 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 of the period : Weighted average number of shares
outstanding during the period
Equity per share = Equity : number of shares outstanding
Earnings per share, diluted = Profit for the period : Weighted average number of
shares outstanding during the period, adjusted for the share issue
