STOCK EXCHANGE RELEASE
Free for publication on February 16, 2010 at 8.00 am (CET+1)
EB, ELEKTROBIT CORPORATION, FINANCIAL STATEMENT BULLETIN 2009
2009 OPERATING RESULT WITHOUT NON-RECURRING ITEMS WAS POSITIVE
SUMMARY 4Q 2009
- Net sales amounted to EUR 40.1 million (EUR 49.5 million, 4Q 2008),
representing a -19.1 per cent decrease year-on-year.
- Operating profit from business operations improved to EUR 0.8 million and the
non-recurring costs totaled to EUR -0.3 million, resulting in a total operating
profit of EUR 0.5 million (EUR -8.5 million, 4Q 2008).
- Operating cash flow amounted to EUR -0.5 million (EUR -0.5 million, 4Q 2008).
The net cash flow amounted to EUR -3.1 million (EUR 1.4 million, 4Q 2008).
- Earnings per share were EUR 0.00 (EUR -0.11, 4Q 2008)
SUMMARY 2009
- Net sales amounted to EUR 153.8 million (EUR 172.3 million in 2008),
representing a -10.7 per cent decrease year-on-year.
- Operating profit from business operations improved to EUR 0.5 million and the
non-recurring costs totaled to EUR -1.9 million, resulting in a total operating
loss of EUR -1.4 million (EUR -42.7 million in 2008).
- Operating cash flow from business operations amounted to EUR 0.4 million (EUR
-24.7 million in 2008). The net cash flow amounted to EUR -6.5 million (EUR
-10.5 million in 2008).
- Cash and other liquid assets totaled to EUR 59.1 million (EUR 68.6 million in
2008)
- Equity ratio remained at a high level of 71.5% (64.9% in 2008)
- Earnings per share were EUR -0.03 (EUR -0.38 in 2008)
- The Board of Directors proposes to the General Meeting that no dividend shall
be distributed.
EB'S CEO JUKKA HARJU:
"Despite the challenging market environment EB's operating result without
non-recurring items from January - December 2009 was slightly positive: EUR 0.5
million (EUR -29.1 million in 2008). The Automotive market showed early signs of
recovery during the 4Q 2009 by generating positive operating result. In the
Wireless Segment we succeeded in delivering positive operating result for 2009
despite of slightly negative operating result in 4Q 2009. Our primary short term
focus remains to be improving profitability further."
FINANCIAL PERFORMANCE DURING JANUARY - DECEMBER 2009
(Comparisons are given to January-December 2008, unless otherwise indicated)
EB's net sales during January - December 2009 decreased -10.7 per cent to EUR
153.8 million (EUR 172.3 million). Operating profit from business operations
amounted to EUR 0.5 million and the non-recurring costs totaled to EUR -1.9
million, resulting to the operating loss of EUR -1.4 million (EUR -42.7
million).
The Automotive Business Segment's net sales during January - December 2009
amounted to EUR 61.5 million (EUR 63.3 million) representing a modest decrease
of -2.8 per cent. The operating loss reduced to EUR -3.8 million (EUR -12.1
million). The significant improvement of operating result with slightly reduced
turnover reflects the operative profitability improvement measures taken.
The Wireless Business Segment's net sales during January - December 2009
amounted to EUR 91.6 million (EUR 108.6 million), representing a decline of
-15.6 per cent. Operating result from business operations amounted to EUR 2.6
million and the non-recurring costs totaled to EUR -1.6 million, resulting to
the operating profit of EUR 1.0 million (EUR -28.5 million). The significant
improvement of operating result with lower turnover year-on-year was mainly due
to the execution of the earlier announced profitability improvement program.
The total R&D investments during the reporting period were EUR 14.7 million (EUR
37.9 million), equaling 9.6 per cent of the net sales (22.0 per cent). The
significant reduction of the R&D investments was mostly due to the change of the
business model (and consequent exit from developing own products) in Mobile
WiMAX in October 2008 and exit from RFID technology business in February 2009.
CONSOLIDATED INCOME STATEMENT (MEUR) 1-12 2009 1-12 2008
12 months 12 months
NET SALES 153.8 172.3
OPERATING PROFIT (LOSS) -1.4 -42.7
Financial income and expenses -0.6 -4.7
RESULT BEFORE TAX -2.0 -47.4
RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS -3.3 -49.8
Profit after tax for the year from discontinued operations 1.3 0.3
RESULT FOR THE PERIOD -2.0 -49.5
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -2.4 -48.9
Result for the period attributable to:
Equity holders of the parent -2.2 -49.5
Minority interest 0.2
Total comprehensive income for the period attributable to:
Equity holder of the parent -2.5 -48.9
Minority interest 0.2
Earnings per share EUR continuing operations -0.03 -0.38
Earnings per share EUR discontinued operations 0.01 0.00
Earnings per share EUR continuing and discontinued -0.02
operations -0.38
- Cash flow from Business Operations amounted to EUR 0.4 million (EUR -24.7
million).
- Equity ratio was 71.5% (64.9%).
- Net gearing was -37.6% (-40.2%).
QUARTERLY FIGURES
The distribution of the Group's overall net sales and profit, MEUR:
+------------------------------------------------+-----+-----+-----+-----+-----+
| |4Q 09|3Q 09|2Q 09|1Q 09|4Q 08|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Net sales | 40.1| 33.5| 37.4| 42.8| 49.5|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss) | 0.5| -0.8| -1.1| 0.0| -8.5|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss) without non-recurring | 0.8| -0.8| -0.4| 0.9| -2.8|
|costs | | | | | |
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result before taxes | 0.1| -0.6| -0.7| -0.9|-11.8|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result for the period | -0.3| -0.5| -1.6| -1.1|-14.0|
+------------------------------------------------+-----+-----+-----+-----+-----+
The distribution of the net sales by Business Segments, MEUR:
+-----------------+-----+-----+-----+-----+-----+
| |4Q 09|3Q 09|2Q 09|1Q 09|4Q 08|
+-----------------+-----+-----+-----+-----+-----+
|Automotive | 16.8| 14.8| 13.5| 16.4| 18.7|
+-----------------+-----+-----+-----+-----+-----+
|Wireless | 23.0| 18.6| 23.7| 26.3| 30.7|
+-----------------+-----+-----+-----+-----+-----+
|Corporation total| 40.1| 33.5| 37.4| 42.8| 49.5|
+-----------------+-----+-----+-----+-----+-----+
The distribution of the net sales by market areas, MEUR and %:
+--------+-----+-----+-----+-----+-----+
| |4Q 09|3Q 09|2Q 09|1Q 09|4Q 08|
+--------+-----+-----+-----+-----+-----+
|Asia | 4.4| 1.8| 2.5| 4.4| 3.1|
| | | | | | |
| |11.0%| 5.5%| 6.8%|10.3%| 6.2%|
+--------+-----+-----+-----+-----+-----+
|Americas| 13.7| 11.1| 12.5| 11.9| 10.9|
| | | | | | |
| |34.2%|33.1%|33.5%|27.7%|22.0%|
+--------+-----+-----+-----+-----+-----+
|Europe | 22.0| 20.6| 22.3| 26.6| 35.5|
| | | | | | |
| |54.8%|61.4%|59.7%|62.1%|71.8%|
+--------+-----+-----+-----+-----+-----+
Net sales (external) and operating profit development by Business Segments and
Other businesses, MEUR:
+-----------------------+-----+-----+-----+-----+-----+
| |4Q 09|3Q 09|2Q 09|1Q 09|4Q 08|
+-----------------------+-----+-----+-----+-----+-----+
|Automotive | | | | | |
| | | | | | |
|Net sales | 16.8| 14.8| 13.5| 16.4| 18.7|
| | | | | | |
|Operating profit (loss)| 0.3| -0.9| -2.5| -0.7| -2.3|
+-----------------------+-----+-----+-----+-----+-----+
|Wireless | | | | | |
| | | | | | |
|Net sales | 23.0| 18.6| 23.7| 26.3| 30.7|
| | | | | | |
|Operating profit (loss)| -0.3| -0.1| 0.9| 0.5| -4.9|
+-----------------------+-----+-----+-----+-----+-----+
|Other businesses | | | | | |
| | | | | | |
|Net sales | 0.2| 0.2| 0.2| 0.1| 0.1|
| | | | | | |
|Operating profit (loss)| 0.5| 0.2| 0.4| 0.2| -1.3|
+-----------------------+-----+-----+-----+-----+-----+
|Total | | | | | |
| | | | | | |
|Net sales | 40.1| 33.5| 37.4| 42.8| 49.5|
| | | | | | |
|Operating profit (loss)| 0.5| -0.8| -1.1| 0.0| -8.5|
+-----------------------+-----+-----+-----+-----+-----+
BUSINESS SEGMENTS' MAIN EVENTS DURING 4Q 2009
EB's reporting is based on the Automotive and Wireless Business Segments.
AUTOMOTIVE
The Automotive Business Segment consists of in-car software products, navigation
software for after market devices and development services for the automotive
industry with leading car manufacturers, car electronics suppliers and
automotive chipset suppliers as customers. By combining its software products
and R&D services EB is creating unique, customized solutions for its automotive
customers.
During the fourth quarter of 2009, the net sales of the Automotive Business
Segment amounted to EUR 16.8 million (EUR 18.7 million, 4Q 2008), representing a
year-on-year decline of -10.0 per cent. The decline in net sales reflects the
challenging automotive market conditions in which customers constrained their
R&D investments. Despite of the decline in net sales, the operating result
improved to EUR 0.3 million (EUR -2.3 million, 4Q 2008) due to the taken
profitability improvement measures and strong focus in service project
performance. Taken profitability measures did not, however, imply any changes to
the strategy or ongoing investments into own software products or development of
the global solution services to its customers.
EB continued executing its strategy in automotive software products. In the
electronic control units domain (ECU) EB launched new releases of EB tresos
Busmirror and EB tresos Inspector to support effective emulation of automotive
communication protocols, such as control area network (CAN) and FlexRay. EB also
announced cooperation with Freescale, optimizing EB's automotive software
products for Freescale microcontrollers and enabling efficient development of
application software. In the infotainment domain EB added support for user
interfaces developed in Adobe® Flash® as well as Microsoft Expression Blend with
its latest release of EB GUIDE Studio
As recognition to EB's creative and versatile automotive software products
portfolio, EB was awarded the "Frost & Sullivan 2009 European Automotive
Telematics and Infotainment Product Line Strategy Award". As a provider of R&D
services and innovative customized solutions for automotive customers, EB was
recognized in Microsoft's Windows Embedded Partner Excellence Awards as the
"EMEA Consumer Partner of the Year".
WIRELESS
The Wireless Business Segment comprises the following businesses:
- Wireless Solutions provides customized solutions and R&D services for wireless
industry and other industries utilizing wireless technologies.
- Wireless Communications Tools provides test tools for measuring, modeling and
emulating radio channel environments.
During the fourth quarter of 2009, the net sales of the Wireless Business
Segment amounted to EUR 23.0 million (EUR 30.7 million, 4Q 2008), representing a
decrease of 25.0 per cent. The significant reduction year-on-year in net sales
is caused by the exit of RFID technology business in 1Q 2009 and by lower demand
for R&D services in the mobile infrastructure market.
Operating profit from business operations amounted to EUR 0.1 million and the
non-recurring costs totaled to EUR -0.4 million, resulting to the operating loss
of EUR -0.3 million (EUR -4.9 million, 4Q 2008). The significant improvement of
operating result with 25,0 per cent lower net sales level year-on-year was
mainly due to the execution of the earlier announced profitability improvement
program.
The demand for satellite-terrestrial network device solutions continued to be
strong during 4Q09.
During the fourth quarter the Wireless Communications Tools business focused on
supporting new MIMO (Multiple Input and Multiple Output) OTA (Over-The-Air)
solutions in addition to LTE systems and devices.
In December EB announced that it will deliver TerreStar satellite-terrestrial
smartphones. Elektrobit Inc., a subsidiary of Elektrobit Corporation, and
TerreStar Corporation (TerreStar) signed a frame supply agreement regarding the
delivery of satellite-terrestrial smartphones for TerreStar. According to the
agreement EB will be responsible for delivering complete products to TerreStar
based on the EB-designed satellite-terrestrial reference device, which includes
manufacturing, forward and reverse logistics, and after market services support.
EB has sub-contracted with leading Electronics Manufacturing Services (EMS)
provider Flextronics to help provide these product delivery services.
Through the agreement with TerreStar, EB's Wireless Solutions business
introduced a product delivery business model, where it provides complete
products to its customers by subcontracting the production of EB-designed
devices from selected Electronic Manufacturing Services (EMS) companies. This
business model both strengthens EB's position as turnkey solution provider for
its customers and enables EB's Wireless Solutions business to address new
business opportunities, according to its strategy.
MARKET OUTLOOK
As a consequence of the general economic environment, both automotive and
wireless communication market growth is unlikely before the global economic
environment starts to improve. However, there has been growing signs of recovery
during the latter part of 2009.
The share of electronics and software in cars has grown significantly during the
past years and it is expected that the trend of increased use of software in
automotive continues to prevail in the market. The majority of the innovation
and differentiation in the automotive industry is brought about by software and
electronics. In order to enable faster innovation, to improve quality and
development efficiency and to reduce complexity related to software, the use of
standard software solutions is expected to increase. The estimated automotive
software general market growth rate of some 15 per cent (Frost & Sullivan) has
been in the short term negatively affected by the current downturn of the
automotive industry. Due to the global recession, the global market for
automotive electronic systems was forecasted to fall in 2009 (Strategy
Analytics). However, the underlying growth of the automotive software market is
expected to continue past the crisis and the cost pressures of the automotive
industry are expected to accelerate the need of productized, efficient software
solutions EB is offering. While customers remain very cost conscious there are
signs that the demand starts to recover. EB's net sales currently cumulating
from the automotive industry is primarily driven by the development of new cars
and platforms and is not directly dependent on production volumes of the car
industry.
The global mobile phone market decreased in volume in 2009, yet the mobile phone
market volumes are expected to start to increase again in 2010. The value share
is expected to move towards higher-end due to the increased demand for new
features and services. New open software architectures and platforms are
creating opportunities for companies such as EB with strong integration
capabilities. The global mobile infrastructure market is expected to be flat
during 2010 and the consolidation of the industry may continue. LTE standard is
gaining strength while the momentum of Mobile WiMAX standard has been
decreasing. Going forward, EB's business driven by LTE is increasing while EB's
future sales revenues are not materially dependent on Mobile WiMAX technology.
The mobile satellite communication service industry is introducing new data and
mobile communication services with new operators being formed and traditional
ones upgrading their solutions and offerings. Mastering of multi-radio
technologies and end-to-end system architectures covering both terminal and
network technologies, has gained importance in the complex wireless technology
industry. The demand for EB's satellite-terrestrial device solutions is expected
to continue. The satellite-terrestrial and Mobile Satellite Services (MSS)
market demand is expected to start moving from the current reference design
phase towards the launch of commercial products and services. This can create
new service and product related business opportunities for EB.
The mobile communication R&D services market continues to be challenging and the
continuing price pressure drives increasing off-shoring in the industry.
However, attractive niches continue to exist (OVUM forecast). Because of the
economical slowdown, companies are expected to adjust their R&D investments and
project portfolios resulting in reduction of the overall R&D expenditures and
activities during the next couple of years, resulting in less demand for
external R&D services. However, OEMs are expected to increase their R&D
flexibility that can create new opportunities for partnering for EB.
The current economic downturn did not have a significant effect on the overall
wireless communications tools market. There is a need for advanced development
tools 3GPP LTE technology and that need is expected to remain as a driver for
the demand in the medium and long term. EB provides world leading channel
emulation tools for the development of MIMO based 3GPP LTE and other advanced
radio technologies.
RESEARCH AND DEVELOPMENT DURING 4Q 2009
EB continued to invest in R&D in the automotive software products and tools and
radio channel emulation products.
The total R&D investments during the fourth quarter of 2009 were EUR 4.2 million
(EUR 7.4 million, 4Q 2008), equaling 10.6 per cent of the net sales (14.9 per
cent in 2008). EUR 0.7 million of R&D investments were capitalized.
The reduction compared to previous year was mostly due to the change of the
business model (and consequent exit from developing own products) in Mobile
WiMAX in October 2008 and exit from RFID technology business in February 2009.
OUTLOOK FOR THE FIRST HALF OF 2010
The more general market outlook by the businesses is presented under the Market
Outlook section.
Our main focus for the first half of 2010 is to improve profitability further
and achieve a positive operating result development.
EB expects that:
· the turnover of the first half of 2010 is higher than in the second
half of 2009 (EUR 73.6 million), and that
· the operating profit of the first half of 2010 is higher than the
operating profit of the second half of 2009 (EUR 0.0 million).
RISKS AND UNCERTAINTIES
EB has identified a number of business, market and finance related factors that
can affect the level of sales and profits. Those of the greatest significance on
a short term are those affecting the utilization and chargeability levels and
average hourly prices of R&D services. On the ongoing financial period the
global economic slowdown may affect the demand for the EB's services, solutions
and products and provide pressure on e.g. volumes and pricing. It may also
increase the risk for credit losses. As the EB's customer base consists mainly
of companies operating in the fields of automotive and telecommunications, the
company is exposed to market changes in these industries. EB believes that
expanding the customer base will reduce dependence on individual companies and
that the company will thereby be mainly affected by the general business climate
in automotive and telecommunication industries. However, some parts of EB's
business are more sensitive to customer dependency than others. The more general
market outlook by the businesses is presented under the Market Outlook section.
EB's operative business risks are mainly related to following items:
uncertainties and short visibility on customers' product program decisions,
their make or buy decisions and on the other hand, their decisions to continue,
downsize or terminate current product programs, ramping up and down project
resources, timing and on the other hand successful utilization of the most
important technologies and components, competitive situation and potential
delays in the markets, timely closing of customer and supplier contracts with
reasonable commercial terms, delays in R&D projects, activations based on
customer contracts, obsolescence of inventories and technology risks in product
development causing higher than planned R&D costs. In addition there are
typical industry warranty and liability risks involved in selling EB's services,
solutions and products. Product delivery business model includes such risks as
high dependency on actual product volumes, development of the cost of materials
and production yields. The abovementioned risks may manifest themselves as
higher cost of product delivery, and ultimately, as lower profit. Revenues
expected to come from new products for existing and new customers include normal
timing risks.
More information on the risks and uncertainties affecting EB can be found on the
Company's website at www.elektrobit.com <http://www.elektrobit.com/>
STATEMENT OF FINANCIAL POSITION AND FINANCING
The figures presented in the statement of financial position of December
31, 2009, are compared with the statement of financial position of December
31, 2008 (EUR 1,000).
12/2009 12/2008
Non-current assets 39,407 46,724
Current assets 120,765 133,797
Total assets 160,172 180,520
Share capital 12,941 12,941
Other equity 99,454 102,181
Minority interest 437
Total shareholders' equity 112,833 115,123
Non-current liabilities 14,967 19,690
Current liabilities 32,372 45,708
Total shareholders' equity and liabilities 160,172 180,520
Net cash flow from operations during the period under review:
+ net profit +/- adjustment of accrual basis items EUR +5.6 million
- increase in net working capital EUR -3.8 million
- interest, taxes and dividends EUR -1.4 million
= cash generated from operations EUR 0,4 million
- net cash used in investment activities EUR -3.4 million
- net cash used in financing EUR -6.5 million
= net change in cash and cash equivalents EUR -9.5 million
The amount of accounts and other receivables, booked in current receivables, was
EUR 59.3 million (EUR 61.9 million on December 31, 2008). Accounts and other
payables, booked in interest-free current liabilities, were EUR 27.5 million
(EUR 38.7 million on December 31, 2008).
The amount of non-depreciated consolidation goodwill at the end of the period
under review was EUR 18.5 million (EUR 18.3 million on December 31, 2008).
The amount of gross investments in the period under review was EUR 4.0 million,
consisting of replacement investments. Net investments for the reporting period
totaled EUR 2.8 million. The total amount of depreciation during the period
under review was EUR 9.7 million, including EUR 2.2 million of depreciation
owing to business acquisitions.
The amount of interest-bearing debt at the end of the reporting period was EUR
16.7 million. The distribution of net financing expenses on the income statement
was as follows:
interest, dividend and other financial income EUR 0.9 million
interest expenses and other financial expenses EUR -1.0 million
foreign exchange gains and losses EUR -0.5 million
EB's equity ratio at the end of the period was 71.5 per cent (64.9 per cent at
the end of 2008).
The figures from the period under review includes the statutory reserves EUR
2.4 million.
EB follows a hedging strategy, the objective of which is to ensure the margins
of business operations in changing market circumstances by minimizing the
influence of exchange rates. In accordance with the hedging strategy, the agreed
customer commitments net cash flow of the currency in question is hedged. The
net cash flow is determined on the basis of sales receivables, payables, the
order book and the budgeted net currency cash flow. The hedged foreign currency
exposure at the end of the review period was equivalent to EUR 22.5 million.
PERSONNEL
EB employed an average of 1589 people between January and December 2009. At the
end of December, EB had 1528 employees (1735 at the end of 2008). A significant
part of EB's personnel are product development engineers.
CHANGES IN COMPANY'S MANAGEMENT
EB appointed M.Sc (Eng.), M.Sc (Econ.) Jukka Harju as CEO of the Company as of
June 4, 2009. Along with the appointment Harju resigned from the membership of
the EB's Board of Directors and from the Chairmanship of the Board's committee
for Automotive Segment. Jorma Halonen, member of EB's Board of Directors, was
elected as the new Chairman of the Automotive committee. In addition to Halonen,
Seppo Laine, Staffan Simberg and Erkki Veikkolainen continued to serve as EB
Board members and Juha Hulkko continued as the Chairman of the Board.
CEO Pertti Korhonen resigned from EB as of June 3, 2009.
EB's Board of Directors and Corporate Executive Board can be found from the
Company's website at: www.elektrobit.com/corporate_governance
<http://www.elektrobit.com/corporate_governance>.
FLAGGING NOTIFICATIONS
There were no changes in ownership during the period under review that would
have caused flagging notifications which are obligations for disclosure in
accordance with Chapter 2, section 9 of the Securities Market Act.
PROPOSAL BY THE BOARD OF DIRECTORS ON THE USE OF THE PROFIT SHOWN ON THE BALANCE
SHEET AND THE PAYMENT OF DIVIDEND
According to the parent company's balance sheet at December 31, 2009, the
distributable assets of the parent company are EUR 66,546,891.53 of which the
profit of the financial year is EUR 44,210,929.40.
The Board of Directors proposes to the General Meeting to be held on March
25, 2010 that no dividend shall be paid.
ANNUAL GENERAL MEETING AND ANNUAL REPORT
Elektrobit Corporation's Annual General Meeting will be held on Thursday 25
March 2010 at 1 pm at the University of Oulu, Saalastinsali, Pentti Kaiteran
katu 1, 90570 Oulu, Finland. Elektrobit Corporation's Annual report, including
the Annual Accounts, the report by the Board of Directors and the Auditor's
report as well as Corporate Governance Statement, is available on the company's
website no later than 4 March 2010.
Oulu, February 16, 2010
EB, Elektrobit Corporation
The Board of Directors
Further Information:
Jukka Harju
CEO
Tel. +358 40 344 5466
Panu Miettinen
CFO
Tel. +358 40 344 5338
Distribution:
NASDAQ OMX Helsinki
Principal media
INVITATION TO PRESS CONFERENCE ON EB'S FINANCIAL STATEMENT 2009
EB, Elektrobit Corporation's Financial Statement Bulletin 2009 will be published
on Tuesday, February 16, 2010 at 8.00 am (CET+1). The release will be available
at EB's website immediately after that.
EB will hold a press conference for media, analysts and institutional investors
on February 16, 2010 at 11.00 am (CET+1)
in Espoo
Keilasatama 5
meeting room Kotisatama, 2(nd) floor.
The conference will also be held as a conference call and the presentation will
be shown simultaneously in the Internet through WebEx. The conference will be
held in English.
To join the conference call please dial +358 20 699 101. The access code is
757344#
To follow the presentation online through WebEx, please go to
www.elektrobit.com/investors <http://www.elektrobit.com/investors>. In technical
problems, please go to www.elektrobit.com/webcast
<http://www.elektrobit.com/webcast> or call number +358 40 344 5148.
The recording of the conference and the presentation will be available after the
conference on EB's website www.elektrobit.com/investors
<http://www.elektrobit.com/investors>.
February 9, 2010
EB, Elektrobit Corporation
Corporate Communications
EB, ELEKTROBIT CORPORATION, FINANCIAL STATEMENT BULLETIN 2009
The consolidated financial statement has been prepared in accordance with
International Financial reporting Standards (IFRS). The Financial Statement of
2009 has been audited and the auditing report has been dated on February
15, 2010.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1-12/2009 1-12/2008
(MEUR)
12 months 12 months
NET SALES 153.8 172.3
Other operating income 4.0 6.2
Change in work in progress and finished goods -0.9 -2.8
Work performed by the undertaking for its own
purpose
and capitalized 0.4 0.1
Raw materials -8.3 -18.0
Personnel expenses -90.9 -104.0
Depreciation -9.7 -16.4
Other operating expenses -49.8 -80.1
OPERATING PROFIT (LOSS) -1.4 -42.7
Financial income and expenses -0.6 -4.7
RESULT BEFORE TAXES -2.0 -47.4
Income taxes -1.3 -2.4
RESULT FOR THE PERIOD FROM CONTINUING
OPERATIONS -3.3 -49.8
Result after taxes for the period from
discontinued
operations 1.3 0.3
RESULT FOR THE PERIOD -2.0 -49.5
Other comprehensive income:
Exchange differences on translating foreign
operations -0.3 0.6
Other comprehensive income for the period total -0.3 0.6
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -2.4 -48.9
Result for the period attributable to
Equity holders of the parent -2.2 -49.5
Minority interest 0.2
Total comprehensive income attributable to
Equity holders of the parent -2.5 -48.9
Minority interest 0.2
Earnings per share EUR continuing operations
Basic earnings per share -0.03 -0.38
Diluted earnings per share -0.03 -0.38
Earnings per share EUR discontinued operations
Basic earnings per share 0.01 0.00
Diluted earnings per share 0.01 0.00
Earnings per share EUR continuing and
discontinued
Operations
Basic earnings per share -0.02 -0.38
Diluted earnings per share -0.02 -0.38
Average number of shares, 1000 pcs 129 413 129 413
Average number of shares, diluted, 1000 pcs 129 580 129 413
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Dec. 31 2009 Dec. 31, 2008
(MEUR)
ASSETS
Non-current assets
Property, plant and equipment 11.4 16.2
Goodwill 18.5 18.3
Intangible assets 8.7 11.0
Other financial assets 0.3 0.4
Receivables 0.4 0.8
Deferred tax assets 0.1 0.1
Non-current assets total 39.4 46.7
Current assets
Inventories 2.4 3.3
Trade and other receivables 59.3 61.9
Financial assets at fair value through profit
or loss 40.2
Cash and short term deposits 18.8 68.6
Current assets total 120.8 133.8
TOTAL ASSETS 160.2 180.5
EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent
Share capital 12.9 12.9
Share premium 64.6 64.6
Translation difference -0.1 0.2
Retained earnings 35.0 37.4
Minority interest 0.4
Total equity 112.8 115.1
Non-current liabilities
Deferred tax liabilities 2.3 2.6
Provisions 0.9 1.0
Interest-bearing liabilities 11.8 15.4
Other liabilities 0.0 0.7
Non-current liabilities total 15.0 19.7
Current liabilities
Trade and other payables 24.4 35.1
Financial liabilities at fair value through
profit or loss 0.4 0.1
Pension obligations 1.2 1.0
Provisions 1.5 2.5
Interest-bearing loans and borrowings 4.9 7.0
Current liabilities total 32.4 45.7
Total liabilities 47.3 65.4
TOTAL EQUITY AND LIABILITIES 160.2 180.5
CONSOLIDATED STATEMENT OF CASH FLOWS (MEUR) 1-12/2009 1-12/2008
12 months 12 months
CASH FLOW FROM OPERATING ACTIVITIES
Result for the period -2.0 -49.5
Adjustment of accrual basis items 7.7 27.0
Change in net working capital -3.8 2.4
Interest paid on operating activities -2.0 -7.3
Interest received from operating activities 1.6 4.4
Other financial income and expenses, net received 0.0 0.0
Income taxes paid -1.1 -1.7
NET CASH FROM OPERATING ACTIVITIES 0.4 -24.7
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of business unit, net of cash acquired -0.7 -0.9
Disposal of business unit, net of cash acquired -0.6 26.8
Purchase of property, plant and equipment -1.2 -1.8
Purchase of intangible assets -1.5 -2.6
Purchase of other investments -0.1 -0.5
Sale of property, plant and equipment 0.3 0.2
Sale of intangible assets 0.1
Proceeds from sale of investments 0.2 10.6
NET CASH FROM INVESTING ACTIVITIES -3.4 31.8
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from borrowing 1.6 0.1
Repayment of borrowing -3.9 -1.9
Payment of finance liabilities -4.1 -6.0
Dividends paid -2.6
NET CASH FROM FINANCING ACTIVITIES -6.5 -10.5
NET CHANGE IN CASH AND CASH EQUIVALENTS -9.5 -3.3
Cash and cash equivalents at beginning of period 68.6 71.9
Cash and cash equivalents at end of period 59.1 68.6
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (MEUR)
A = Share capital
B = Share premium
C = Retained earnings
D = Minority share
E = Total equity
A B C D E
Equity on January 1, 2008 12.9 64.6 88.1 165.7
Dividend distribution -2,6 -2,6
Share-related compensation 1.0 1.0
Total comprehensive income for the period -48.9 -48.9
Other items -0.0 -0.0
Equity on December 31, 2008 12.9 64.6 37.6 115.1
Equity on January 1, 2009 12.9 64.6 37.6 115.1
Share-related compensation 0.3 0.3
Total comprehensive income for the period -2.5 -2.5
Other items -0.5 0.4 -0.0
Equity on December 31, 2009 12.9 64.6 34.9 0.4 112.8
NOTES TO THE FINANCIAL STATEMENT BULLETIN
Accounting principles for the Financial Statement Bulletin:
The same accounting policies and methods of computation are followed in the
financial statement bulletin as compared with annual financial statements.
Explanatory comments about the seasonality or cyclicality of reporting period
operations:
The Company operates in business areas which are subject to seasonal
fluctuations.
The nature and amount of items affecting assets, liabilities, equity, net
income, or cash flows which are unusual because of their nature, size or
incidence:
The result of the reporting period comprises non-recurring restructuring costs
of EUR -1.9 million.
Dividends paid:
The General Meeting held on March 19, 2009 decided in accordance with the
proposal of the Board of Directors that no dividend shall be distributed.
SEGMENT INFORMATION (MEUR)
OPERATING SEGMENTS 1-12/2009 1-12/2008
12 months 12 months
Automotive
Net sales to external customers 61.5 63.3
Net sales to other segments 0.0 0.1
Net sales total 61.5 63.4
Operating profit (loss) -3.8 -12.1
Wireless
Net sales to external customers 91.6 108.6
Net sales to other segments 0.2 0.1
Net sales total 91.8 108.6
Operating profit (loss) 1.0 -28.5
OTHER ITEMS
Other items
Net sales to external customers 0.6 0.4
Operating profit (loss) 1.3 -2.1
Eliminations
Net sales to other segments -0.2 -0.2
Operating profit (loss) 0.0 0.0
Group total
Net sales to external customers 153.8 172.3
Operating profit (loss) -1.4 -42.7
Net sales of geographical areas (MEUR) 1-12/2009 1-12/2008
12 months 12 months
Net sales
Europe 91.4 114.9
Americas 49.2 49.2
Asia 13.2 8.1
Net sales total 153.8 172.3
Material events subsequent to the end of the interim period not reflected in the
financial statements for the interim period:
There are no such material events subsequent to the end of the interim report
period that have not been reflected in this report.
The effect of changes in the composition of the group structure during the
reporting period:
On February 2, 2009 EB exited from RFID technology business by selling 7iD
Technologies GmbH to the acting management of the said company in Austria.
On June 22, 2009 EB and AEV (Audi Electronics Venture GmbH) established a joint
venture named e.solutions GmbH. EB holds a 51% stake of the new company, and
thus it will be recorded as EB's subsidiary in the consolidated financial
statement. AEV holds the remaining 49% stake.
Related party transactions: 1-12/2009 1-12/2008
Employee benefits for key management and stock
option expenses total 2.2 3.3
CONSOLIDATED STATEMENT OF 10-12/ 7-9/ 4-6/ 1-3/ 10-12/
COMPREHENSIVE INCOME 2009 2009 2009 2009 2008
BY QUARTER (MEUR) 3 months 3 months 3 months 3 months 3 months
NET SALES 40.1 33.5 37.4 42.8 49.5
Other operating income 1.2 0.9 1.3 0.6 1.5
Change in work in progress and
finished goods -0.1 0.4 -0.9 -0.3 -1.2
Work performed by the
undertaking
for its own purpose and
capitalized 0.0 0.0 0.3 0.1 0.0
Raw materials -2.5 -2.1 -1.5 -2.2 -6.6
Personnel expenses -23.3 -20.3 -22.7 -24.6 -27.8
Depreciation -2.2 -2.4 -2.4 -2.7 -3.8
Other operating expenses -12.7 -10.8 -12.6 -13.7 -20.1
OPERATING PROFIT (LOSS) 0.5 -0.8 -1.1 0.0 -8.5
Financial income and expenses -0.3 0.2 0.5 -0.9 -3.3
RESULT BEFORE TAXES 0.1 -0.6 -0.7 -0.9 -11.8
Income taxes -0.4 0.1 -0.9 -0.2 -2.3
RESULT FOR THE PERIOD FROM
CONTINUING OPERATIONS -0.3 -0.5 -1.6 -1.1 -14.0
Result after taxes for the
period
from discontinued operations 1.0 0.3 0.1
RESULT FOR THE PERIOD 0.7 -0.1 -1.6 -1.1 -13.9
Other comprehensive income
for the period total 0.3 -0.4 -0.5 0.3 0.1
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 1.0 -0.5 -2.1 -0.8 -13.8
Result for the period
attributable to:
Equity holders of the parent 0.6 -0.2 -1.6 -1.1 -13.9
Minority interest 0.1 0.0
Total comprehensive income
for the period attributable to:
Equity holders of the parent 0.9 -0.6 -2.1 -0.8 -13.8
Minority interest 0.1 0.0
CONSOLIDATED STATEMENT OF Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
FINANCIAL POSITION (MEUR) 2009 2009 2009 2009 2008
ASSETS
Non-current assets
Property, plant and equipment 11.4 12.2 13.9 14.9 16.2
Goodwill 18.5 18.5 18.5 18.3 18.3
Intangible assets 8.7 8.8 9.2 10.0 11.0
Other financial assets 0.3 0.3 0.4 0.4 0.4
Receivables 0.4 0.8 0.8 0.8 0.8
Deferred tax assets 0.1 0.0 0.1
Non-current assets total 39.4 40.7 42.7 44.4 46.7
Current assets
Inventories 2.4 2.6 2.2 2.6 3.3
Trade and other receivables 59.3 55.6 60.4 62.9 61.9
Financial assets at fair
value
through profit or loss 40.2 0.3 0.2 0.2
Cash and short term deposits 18.8 62.2 60.3 62.8 68.6
Current assets total 120.8 120.7 123.2 128.5 133.8
TOTAL ASSETS 160.2 161.4 165.9 172.9 180.5
EQUITY AND LIABILITIES
Equity attributable to equity
holders
of the parent
Share capital 12.9 12.9 12.9 12.9 12.9
Share premium 64.6 64.6 64.6 64.6 64.6
Translation difference -0.1 -0.4 -0.0 0.5 0.2
Retained earnings 35.0 35.1 35.2 36.8 37.4
Minority interest 0.4 0.0
Total equity 112.8 112.2 112.7 114.8 115.1
Non-current liabilities
Deferred tax liabilities 2.3 2.2 2.3 2.5 2.6
Provisions 0.9 1.3 1.7 0.8 1.0
Interest-bearing liabilities 11.8 12.5 13.6 14.2 15.4
Other liabilities 0.0 0.1 0.1 0.2 0.7
Non-current liabilities total 15.0 16.2 17.6 17.7 19.7
Current liabilities
Trade and other payables 24.4 24.5 26.3 30.8 35.1
Financial liabilities at fair
value
through profit or loss 0.4 0.1
Pension obligations 1.2 1.2 1.2 1.2 1.0
Provisions 1.5 1.9 1.9 2.3 2.5
Interest-bearing loans and
Borrowings (non-current) 4.9 5.2 6.3 6.2 7.0
Current liabilities total 32.4 32.9 35.7 40.4 45.7
Total liabilities 47.3 49.1 53.3 58.1 65.4
TOTAL EQUITY AND LIABILITIES 160.2 161.4 165.9 172.9 180.5
10-12/ 7-9/ 4-6/ 1-3/ 10-12/
CONSOLIDATED STATEMENT
OF CASH FLOWS BY QUARTER 2009 2009 2009 2009 2008
3 months 3 months 3 months 3 months 3 months
Net cash from operating
activities -0.5 4.6 -1.0 -2.7 -0.5
Net cash from investing
activities -0.7 -0.7 -0.7 -1.4 5.7
Net cash from financing
activities -1.9 -2.1 -0.7 -1.7 -3.8
Net change in cash and cash
equivalents -3.1 1.8 -2.5 -5.8 1.4
FINANCIAL PERFORMANCE RELATED RATIOS 1-12/2009 1-12/2008
12 months 12 months
STATEMENT OF COMPREHENSIVE INCOME (MEUR)
Net sales 153.8 172.3
Operating profit (loss) -1.4 -42.7
Operating profit (loss), % of net sales -0.9 -24.8
Result before taxes -2.0 -47.4
Result before taxes, % of net sales -1.3 -27.5
Result for the period -3.3 -49.8
PROFITABILITY AND OTHER KEY FIGURES
Interest-bearing net liabilities, (MEUR) -42.4 -46.2
Net gearing, -% -37.6 -40.2
Equity ratio, % 71.5 64.9
Gross investments, (MEUR) 4.0 9.8
Average personnel during the period 1589 1768
Personnel at the period end 1528 1735
AMOUNT OF SHARE ISSUE ADJUSTMENT Dec. 31, Dec. 31,
(1,000 pcs) 2009 2008
At the end of period 129 413 129 413
Average for the period 129 413 129 413
Average for the period diluted with stock options 129 580 129 413
1-12/2009 1-12/2008
STOCK-RELATED FINANCIAL RATIOS (EUR)
12 months 12 months
Basic earnings per share -0.03 -0.38
Diluted earnings per share -0.03 -0.38
Equity *) per share 0.87 0.89
*) Equity attributable to equity holders of the parent
MARKET VALUES OF SHARES (EUR) 1-12/2009 1-12/2008
Highest 1.40 1.79
Lowest 0.33 0.29
Average 0.62 0.82
At the end of period 0.94 0.33
Market value of the stock, (MEUR) 121.6 42.7
Trading value of shares, (MEUR) 11.1 9.6
Number of shares traded, (1,000 pcs) 17 822 11 770
Related to average number of shares % 13.8 9.1
SECURITIES AND CONTINGENT LIABILITIES Dec. 31, Dec. 31,
(MEUR) 2009 2008
AGAINST OWN LIABILITIES
Floating charges 3.1 3.1
Mortgages
Pledges 1.0 1.1
Guarantees 3.8 4.1
Mortgages are pledged for liabilities totaled 8.6 9.9
OTHER DIRECT AND CONTINGENT LIABILITIES
Rental liabilities
Falling due in the next year 5.9 4.2
Falling due after one year 17.9 5.1
NOMINAL VALUE OF CURRENCY DERIVATIVES Dec. 31, Dec. 31,
(MEUR) 2009 2008
Foreign exchange forward contracts
Market value -0.3 -0.1
Nominal value 11.0 11.9
Purchased currency options
Market value 0.1
Nominal value 11.5
Sold currency options
Market value -0.1
Nominal value 23.0
[HUG#1384754]
