Salcomp Plc Interim Report 12 August 2010 at 8:15 a.m. Finnish time
Salcomp Plc Interim Report 1 January - 30 June 2010
NET SALES CONTINUED STRONG GROWTH
April-June 2010:
-Net sales grew by 18% to EUR 72.2 million (EUR 61.1 million in April-June
2009).
-Number of chargers delivered increased by 17% to 68.6 million pieces (58.7
million pieces).
-Market share in mobile phone chargers increased by one percentage unit to some
23% (22%).
-Operating profit weakened by 38% to EUR 2.3 million (EUR 3.8 million).
-Operating profit, excluding the exchange rate gains/losses, was EUR 1.8 million
(EUR 2.8 million).
-Earnings per share weakened by 43% to EUR 0.04 (EUR 0.07).
-Cash flow from operating activities, excluding the change in selling of
receivables, was EUR 5.1 million positive (EUR 5.1 million positive).
January-June 2010:
-Net sales grew by 21% to EUR 131.8 million (EUR 108.7 million in January-June
2009).
-Number of chargers delivered increased by 28% to 134.5 million pieces (105.4
million pieces).
-Operating profit improved by 36% to EUR 3.8 million (EUR 2.8 million).
-Operating profit, excluding the exchange rate gains/losses, was EUR 2.8 million
(EUR 2.9 million).
-Earnings per share improved by 300% to EUR 0.08 (EUR 0.02).
-Cash flow from operating activities, excluding the change in selling of
receivables, was EUR 6.3 million positive (EUR 6.5 million negative).
-Group's net interest-bearing debt at the end of June was EUR -1.5 million (EUR
10.2 million).
-Cash and cash equivalents at the end of June were EUR 17.8 million (EUR 19.5
million).
Outlook for 2010 unchanged:
-Both Salcomp's net sales and operating profit in 2010 are expected to improve
compared with the 2009 level.
Markku Hangasjärvi, President and CEO:
”The mobile phone and mobile phone charger market seem to continue recovering
from the global financial crisis quicker than many other industries. According
to Salcomp's estimate, some 297 million mobile phones with registered trade
marks were globally sold during the second quarter of the year, up by some 11%
compared with the corresponding quarter in 2009.
Due to the market growth, higher average sales prices by virtue of the stronger
US dollar, coupled with an increase in our market share, both the number of
chargers we delivered and our net sales in the second quarter in 2010 continued
to strongly grow compared with the second quarter in 2009 and the first quarter
in 2010.
Along with the increase in net sales, our operating profit also clearly improved
compared with the first quarter of this year. However, the operating profit
remained lower than in the second quarter in 2009, mainly due to more expensive
materials and components, as well as a rise in labor costs. Furthermore, the
fixed costs increased compared with the second quarter in 2009 because of our
accelerated efforts in broadening the product range and customer base, among
others.
We also took the next step in achieving our strategic targets by introducing a
medium power range Matrix product platform. The 24-65 watt power adapters
produced according to the Matrix platform are suitable, among others, for
point-of-sales devices, netbooks, modems and routers, as well as for industrial
applications and consumer electronics devices. The first step outside the low
power range chargers was the 9-18 watt Nova product platform introduced last
year.”
Financial development in April-June 2010
In April-June, Salcomp's net sales increased by 18% to EUR 72.2 million (EUR
61.1 million in April-June 2009) due to the increase in the number of chargers
delivered by 17% to 68.6 million (58.7 million) pieces. In addition, the average
sales prices of chargers rose due to the stronger US dollar in relation to euro.
Salcomp's market share in mobile phone chargers was approximately 23%
(approximately 22%).
Salcomp's operating profit weakened by 38% to EUR 2.3 million (EUR 3.8 million)
due to a rise in material and component prices and labor costs, among others. In
addition, accelerated efforts in broadening the product range and customer base
increased fixed costs. Operating profit was improved by realized and unrealized
exchange rate gains of EUR 0.6 million (EUR 1.0 million of gains). The operating
margin in the second quarter of the year was 3.2% (6.2%).
The Group's net finance expenses were EUR 0.4 million (EUR 0.1 million
positive). The finance expenses for the second quarter of the year include EUR
0.2 million of gains (EUR 0.6 million of gains) due to the exchange rate
differences in intragroup loans. Renewing the Group's financial package in June
involved a one-off cost of approximately EUR 0.2 million.
Taxes for the quarter totaled EUR 0.4 million (EUR 1.2 million). Taxes in the
comparison period include a deferred tax of EUR 0.7 million, resulting from the
parent company's tax-deductible goodwill amortization. The goodwill was fully
amortized in October 2009.
The profit for the period amounted to EUR 1.5 million (EUR 2.6 million).
Earnings per share were EUR 0.04 (EUR 0.07), and diluted earnings per share were
EUR 0.04 (EUR 0.07).
Cash flow from operating activities in April-June amounted to EUR 4.7 million
positive (EUR 2.1 million positive). The cash flow from operating activities,
excluding the change in selling of receivables, was EUR 5.1 million positive
(EUR 5.1 million positive).
Financial development in January-June 2010
The net sales grew by 21% in January-June to EUR 131.8 million (EUR 108.7
million in January-June 2009). The number of chargers delivered increased by 28%
to 134.5 million (105.4 million) pieces.
The operating profit improved by 36% to EUR 3.8 million (EUR 2.8 million) in
January-June. The profitability was improved by the increase in the number of
chargers delivered compared with the first half of 2009, when charger sales
volumes were exceptionally low due to the global financial crisis. In addition,
the operating profit was increased by some EUR 1.0 million in realized and
unrealized exchange rate gains (EUR -0.1 million). The operating profit in
January-June was burdened by a rise in material and component prices and labor
costs, as well as an increase in fixed costs. The operating margin was 2.9%
(2.6%) in the first half of the year.
The Group's net finance expenses were EUR 0.2 million (EUR 0.1 million
positive). The finance expenses for the period include EUR 0.9 million of gains
(EUR 1.0 million of gains) due to the unrealized exchange rate differences in
intra-group loans.
Taxes for the period totaled EUR 0.5 million (EUR 2.2 million). Taxes in the
comparison period include a deferred tax of EUR 1.5 million resulting from the
parent company's tax-deductible goodwill amortization. The goodwill was fully
amortized in October 2009.
The profit for the period amounted to EUR 3.2 million (EUR 0.7 million).
Earnings per share were EUR 0.08 (EUR 0.02) and diluted earnings per share EUR
0.08 (EUR 0.02).
R&D and capital expenditure
The Group's R&D expenditure was EUR 3.3 million (EUR 2.7 million) in
January-June, or 2.5% (2.5%) of net sales. R&D focused on developing new
products for current and new customers, and constant improvement in the cost
structure of existing products. In July, Salcomp introduced the Matrix product
platform, and power adapters produced according to this platform are suitable,
among others, for point-of-sales devices, netbooks and data communications
devices, such as modems and routers.
Capital expenditure in January-June amounted to EUR 4.0 million (EUR 0.4
million). The capital expenditure involved increasing the capacity in the low
and medium power range chargers.
Financing
Cash flow from operating activities in January-June amounted to EUR 6.5 million
positive (EUR 7.6 million negative) mainly due to the decline in working
capital. The cash flow from operating activities, excluding the change in
selling of receivables, was EUR 6.3 million positive (EUR 6.5 million negative).
Cash and cash equivalents at the end of June were EUR 17.8 million (EUR 19.5
million).
The Group's equity ratio at the end of June was 42.2% (38.9%) and gearing was
-2.0% (15.2%). Net interest-bearing debt totaled EUR -1.5 million (EUR 10.2
million) at the end of the period.
In June, Salcomp signed an agreement concerning the renewal of the company's
financing arrangements. This amended the loan arrangements that were signed in
June 2009. The amendments to the loan arrangements improve the Group liquidity
and reduce the interest expenses. The syndicated loan of EUR 25 million agreed
with Nordea Bank Finland Plc and Merchant Banking, Skandinaviska Enskilda Banken
AB (publ) is divided in a EUR 15 million long-term loan and a EUR 10 million
long-term revolving credit limit. The loan period is 3 years. The terms and
conditions of the Facilities contain market customary covenants and undertakings
and security cover for the Group. On 31 May 2010, Salcomp repaid the capital
loan of EUR 3 million agreed in December 2008 and the capital loan of EUR 7
million agreed in June 2009, as well as the interests related to them totaling
EUR 1.3 million. The capital loans, in accordance with chapter 12 of the Finnish
Companies Act, were granted by Nordstjernan AB, the majority shareholder of
Salcomp. Renewing the Group's financial package involved a one-off cost of
approximately EUR 0.2 million. The Group had an unused revolving credit limit of
EUR 10 million at the end of the period.
Personnel
The number of Group personnel at the end of June totaled 9,830 (6,993): 6,086
were employed in China, 1,452 in Brazil, 2,223 in India, and 69 in Finland and
other countries. The number of personnel increased due to the rise in production
volumes.
Shares and shareholders
Salcomp's registered share capital amounts to EUR 9,832,735.12, divided into
39,023,840 fully paid outstanding shares and 337,000 shares in the possession of
the company. The company has one series of shares, and all the shares entitle
the shareholder to equal rights in the company.
Salcomp's share price fluctuated between EUR 1.85 and EUR 2.19 in January-June.
The average share price during the period was EUR 2.00, and the closing price at
the end of June EUR 1.87. Share trading amounted to EUR 2.9 million and 1.4
million shares, including the shares subscribed in the directed issue in June, a
total of 385,650 shares. According to the book-entry system, Salcomp had 1,091
shareholders at the end of the period. Foreign ownership at the end of June was
78.1% and the market value EUR 73.6 million.
In May, the Board of Directors of Salcomp approved two new share-based incentive
programs for the Group key personnel: a Matching Share Program targeted at the
members of the Extended Global Management Team, as well as a Performance Share
Program targeted at 53 key employees including also the members of the Extended
Global Management Team. Both incentive programs include one earning period,
calendar years 2010-2012.
Based on the resolutions on the new incentive programs, the Board resolved,
pursuant to the authorization by the Annual General Meeting on 24 March 2010, to
offer new shares for subscription for the Group's key personnel. A total of
48,650 new shares in Salcomp were subscribed for in the directed issue,
corresponding to approximately 0.12 per cent of the company's share capital. The
new shares were entered in the Trade Register on 24 June 2010. The subscription
price of the shares, i.e. EUR 1.98 per share totaling EUR 96,327, has been
placed in the company's invested free equity. In addition, the company itself
has subscribed for 337,000 new shares in accordance with the terms and
conditions of the share issue to the company itself. The said shares may be used
to fulfill the commitments related to the key employees' incentive programs. The
admittance of the new shares to trading at the NASDAQ OMX Helsinki Ltd took
place on 24 June 2010. The number of Salcomp Plc's all shares and shares
admitted to trading is, after the registration of the new shares, 39,360,840
shares, of which 337,000 shares are in the possession of the company. The number
of outstanding shares is 39,023, 840 shares.
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 and
availability of materials and charger components and changes in the competition
in the mobile phone charger markets. Furthermore, consolidation of the customer
base and deterioration in the financial position of a major customer may have a
negative effect on Salcomp's business.
Major changes in exchange rates can be considered as one of the other short-
term uncertainty factors, especially the exchange rate of the US dollar in
relation to the euro and to currencies in those countries in which Salcomp has
production. In addition, the impact of the global economy on the stability of
the financial market, as well as accessibility of financing, has an influence on
Salcomp's business.
In the medium term, Salcomp's business may be affected by standardization
projects concerning mobile phone chargers in the different market areas. Due to
the standardization, it is possible that in the future, in some market areas,
part of mobile phone kits will not include a separate mobile phone charger.
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
2009.
Events after the reporting period
There are no events after the reporting date which would have a significant
influence on the figures presented in the Interim Report.
Outlook for 2010
According to the estimates published by some of Salcomp's key customers and by
various market research companies, the mobile phone market is expected to grow
during 2010, compared with 2009. Measured by the number of units, this would
mean approximately 1.2 billion mobile phones and, therefore, mobile phone
chargers, to be sold in 2010. This lays a solid base for increasing the number
of chargers delivered by Salcomp, as well as the net sales, in 2010. On the
other hand, labor costs and prices of materials and components used in chargers
are expected to rise somewhat during the second half of 2010, creating
challenges in improving the operating profit.
However, Salcomp's outlook for 2010 remains unchanged. Both Salcomp's net sales
and operating profit in 2010 are expected to improve compared with the 2009
level.
Helsinki 12 August 2010
Salcomp Plc
Board of Directors
Further information:
Markku Hangasjärvi, President and CEO, tel. +358 40 7310 114
Jari Saarinen, CFO, tel. +358 40 5004 206
The Finnish briefing for analysts and media will be held on 12 August 2010 at
11:00 a.m. Finnish time at Hotel Scandic Simonkenttä, Simonkatu 9, Helsinki. The
Interim Report slide show presentation will be available at Salcomp's web page,
www.salcomp.com > Investors after the disclosure of the stock exchange release.
Salcomp's Interim Report for January-September will be published on 11 November
2010.
--------------------------------------------------------------------------------
| STATEMENT OF COMPREHENSIVE INCOME |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| | 1-6/2010 | 1-6/2009 | Change % | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 131 805 | 108 678 | 21.3% | 239 455 |
--------------------------------------------------------------------------------
| Cost of sales | -118 722 | -97 869 | 21.3% | -213 167 |
--------------------------------------------------------------------------------
| Gross margin | 13 083 | 10 809 | 21.0% | 26 288 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Other operating income | 100 | 11 | 809.1% | 90 |
--------------------------------------------------------------------------------
| Sales and marketing | -1 461 | -964 | 51.6% | -2 063 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Administrative expenses | -4 593 | -4 219 | 8.9% | -8 685 |
--------------------------------------------------------------------------------
| Research and development | -3 315 | -2 729 | 21.5% | -5 283 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -7 | -109 | -93.6% | -131 |
--------------------------------------------------------------------------------
| Operating result | 3 807 | 2 799 | 36.0% | 10 216 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Finance income | 749 | 1 016 | -26.3% | 1 228 |
--------------------------------------------------------------------------------
| Finance expenses | -929 | -949 | -2.1% | -2 325 |
--------------------------------------------------------------------------------
| Result before tax | 3 627 | 2 866 | 26.6% | 9 119 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Income tax expenses | -468 | -2 218 | -78.9% | -3 861 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Result for the period | 3 159 | 648 | 387.5% | 5 258 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | | | | |
| income for the period | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Exchange differences on | 3 482 | 2 176 | 60.0% | 3 069 |
| translating foreign | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | 3 482 | 2 176 | 60.0% | 3 069 |
| income for the period, | | | | |
| net of tax | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE | 6 641 | 2 824 | 135.2% | 8 327 |
| INCOME FOR THE PERIOD | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Basic earnings per | 0.08 | 0.02 | 300.0% | 0.13 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0.08 | 0.02 | 300.0% | 0.14 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF COMPREHENSIVE | | | |
| INCOME | | | |
| (EUR 1 000) | | | |
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | Change |
| | 2010 | 2009 | % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 72 170 | 61 145 | 18.0% |
--------------------------------------------------------------------------------
| Cost of sales | -64 962 | -53 210 | 22.1% |
--------------------------------------------------------------------------------
| Gross margin | 7 208 | 7 935 | -9.2% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Other operating income | 100 | 8 | 1 150.0% |
--------------------------------------------------------------------------------
| Sales and marketing | -872 | -476 | 83.2% |
| expenses | | | |
--------------------------------------------------------------------------------
| Administrative expenses | -2 301 | -2 106 | 9.3% |
--------------------------------------------------------------------------------
| Research and development | -1 803 | -1 472 | 22.5% |
| expenses | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -5 | -109 | -95.4% |
--------------------------------------------------------------------------------
| Operating profit | 2 327 | 3 780 | -38.4% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Finance income | 87 | 681 | -87.2% |
--------------------------------------------------------------------------------
| Finance expenses | -484 | -611 | -20.8% |
--------------------------------------------------------------------------------
| Profit before tax | 1 930 | 3 850 | -49.9% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Income tax expenses | -402 | -1 218 | -67.0% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Profit for the period | 1 528 | 2 632 | -41.9% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Other comprehensive income for | | | |
| the period | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Exchange differences on | 2 418 | 519 | 365.9% |
| translating foreign operations | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Other comprehensive income for | 2 418 | 519 | 365.9% |
| the period, net of tax | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE INCOME FOR | 3 946 | 3 151 | 25.2% |
| THE PERIOD | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0.04 | 0.07 | -42.9% |
--------------------------------------------------------------------------------
| Diluted earnings per share, | 0.04 | 0.07 | -42.9% |
| EUR | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF FINANCIAL POSITION |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | Change % | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 24 446 | 20 993 | 16.4% | 19 886 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Goodwill | 66 412 | 66 412 | 0.0% | 66 412 |
--------------------------------------------------------------------------------
| Other intangible | 635 | 404 | 57.2% | 405 |
| assets | | | | |
--------------------------------------------------------------------------------
| Deferred tax assets | 3 257 | 3 009 | 8.2% | 3 180 |
--------------------------------------------------------------------------------
| | 94 750 | 90 818 | 4.3% | 89 883 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 26 550 | 21 829 | 21.6% | 20 329 |
--------------------------------------------------------------------------------
| Trade and other | 43 357 | 40 072 | 8.2% | 32 623 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 17 815 | 19 539 | -8.8% | 18 872 |
| equivalents | | | | |
--------------------------------------------------------------------------------
| | 87 722 | 81 440 | 7.7% | 71 824 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total assets | 182 472 | 172 258 | 5.9% | 161 707 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and liabilities | | | | |
--------------------------------------------------------------------------------
| Share capital | 9 833 | 9 833 | 0.0% | 9 833 |
--------------------------------------------------------------------------------
| Invested unrestricted | 19 401 | 22 035 | -12.0% | 22 035 |
| equity | | | | |
--------------------------------------------------------------------------------
| Retained earnings | 47 603 | 35 021 | 35.9% | 40 741 |
--------------------------------------------------------------------------------
| | 76 837 | 66 889 | 14.9% | 72 609 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Non-current | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 17 303 | 16 311 | 6.1% | 17 313 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Capital loans | 0 | 10 000 | - | 10 000 |
--------------------------------------------------------------------------------
| Interest-bearing | 13 853 | 16 467 | -15.9% | 5 882 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | 31 156 | 42 778 | -27.2% | 33 195 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other | 72 054 | 59 358 | 21.4% | 52 671 |
| payables | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 2 425 | 3 233 | -25.0% | 3 232 |
| current liabilities | | | | |
--------------------------------------------------------------------------------
| | 74 479 | 62 591 | 19.0% | 55 903 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total equity and | 182 472 | 172 258 | 5.9% | 161 707 |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CHANGES IN EQUITY |
| (EUR 1 000) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to equity holders of the parent |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | Share | Invested | Translati | Retained | Total |
| | | capital | unrestrict | on | earnings | equity |
| | | | ed equity | differenc | | |
| | | | | es | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on 1 Jan | 9 833 | 22 035 | -784 | 32 695 | 63 779 |
| 2009 | | | | | |
--------------------------------------------------------------------------------
| | Total | 0 | 0 | 2 176 | 648 | 2 824 |
| | comprehensi | | | | | |
| | ve income | | | | | |
| | for the | | | | | |
| | period | | | | | |
--------------------------------------------------------------------------------
| | Incentive | 0 | 0 | 0 | 286 | 286 |
| | plan | | | | | |
--------------------------------------------------------------------------------
| Equity on 30 | 9 833 | 22 035 | 1 392 | 33 629 | 66 889 |
| June 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on 1 Jan | 9 833 | 22 035 | 2 285 | 38 456 | 72 609 |
| 2010 | | | | | |
--------------------------------------------------------------------------------
| | Total | 0 | 0 | 3 482 | 3 159 | 6 641 |
| | comprehensi | | | | | |
| | ve income | | | | | |
| | for the | | | | | |
| | period | | | | | |
--------------------------------------------------------------------------------
| | Share issue | 0 | 96 | 0 | 0 | 96 |
--------------------------------------------------------------------------------
| | Repayment | 0 | -2 730 | 0 | 0 | -2 730 |
| | of capital | | | | | |
--------------------------------------------------------------------------------
| | Incentive | 0 | 0 | 0 | 221 | 221 |
| | plans | | | | | |
--------------------------------------------------------------------------------
| Equity on 30 | 9 833 | 19 401 | 5 767 | 41 836 | 76 837 |
| June 2010 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CASH FLOWS |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| | 1-6/2010 | 1-6/2009 | Change % | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before change in | 6 496 | 5 831 | 11.4% | 15 535 |
| working capital | | | | |
--------------------------------------------------------------------------------
| Change in working capital | 1 980 | -12 248 | - | -10 521 |
--------------------------------------------------------------------------------
| Financial items and taxes | -1 929 | -1 220 | 58.1% | -1 852 |
--------------------------------------------------------------------------------
| Net cash flow from | 6 547 | -7 637 | - | 3 162 |
| operating activities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Purchases | -3 968 | -359 | 1 005.3% | -1 592 |
--------------------------------------------------------------------------------
| Sales | 81 | 11 | 636.4% | 64 |
--------------------------------------------------------------------------------
| Cash flows from investing | -3 887 | -348 | 1 017.0% | -1 528 |
| activities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Cash flow before financing | 2 660 | -7 985 | - | 1 634 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Withdrawal of borrowings | 16 466 | 27 000 | -39.0% | 27 000 |
--------------------------------------------------------------------------------
| Repayment of borrowings | -19 333 | -27 425 | -29.5% | -38 092 |
--------------------------------------------------------------------------------
| Share issue | 96 | 0 | - | 0 |
--------------------------------------------------------------------------------
| Dividends* | -2 730 | 0 | - | |
--------------------------------------------------------------------------------
| Net cash flow from | -5 501 | -425 | 1 194.4% | -11 092 |
| financing activities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Change in cash and cash | -2 841 | -8 410 | -66.2% | -9 458 |
| equivalents | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents | 18 872 | 26 590 | -29.0% | 26 590 |
| at the beginning of the | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Translation difference | 1 784 | 1 359 | 31.3% | 1 740 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 17 815 | 19 539 | -8.8% | 18 872 |
| at the end of the period | | | | |
--------------------------------------------------------------------------------
*repayment of capital
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| KEY FIGURES | | | | |
--------------------------------------------------------------------------------
| | 1-6/ | 1-6/ | Change | 1-12/ |
| | 2010 | 2009 | % | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sold chargers, Mpcs | 134.5 | 105.4 | 27.6% | 243.3 |
--------------------------------------------------------------------------------
| Average sales price, | 0.98 | 1.03 | -5.0% | 0.98 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, MEUR | 131.8 | 108.7 | 21.3% | 239.5 |
--------------------------------------------------------------------------------
| EBITDA, MEUR | 6.4 | 5.3 | 20.8% | 15.1 |
--------------------------------------------------------------------------------
| EBITDA%, % | 4.9% | 4.9% | | 6.3% |
--------------------------------------------------------------------------------
| Operating result, | 3.8 | 2.8 | 35.7% | 10.2 |
| MEUR | | | | |
--------------------------------------------------------------------------------
| Operating margin, % | 2.9% | 2.6% | | 4.3% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per | 0.08 | 0.02 | 300.0% | 0.13 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0.08 | 0.02 | 300.0% | 0.14 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share | 0.08 | 0.05 | 60.0% | 0.20 |
| excluding deferred | | | | |
| tax, EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share, | 1.97 | 1.72 | 14.5% | 1.86 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, % | 10.4% | 2.0% | | 7.7% |
--------------------------------------------------------------------------------
| Return on capital | 13.2% | 8.0% | | 12.3% |
| employed, % | | | | |
--------------------------------------------------------------------------------
| Return on net | 51.6% | 30.5% | | 61.2% |
| assets, % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 42.2% | 38.9% | | 44.9% |
--------------------------------------------------------------------------------
| Gearing, % | -2.0% | 15.2% | | 0.3% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure, | 4.0 | 0.4 | 1 005.3% | 1.6 |
| MEUR | | | | |
--------------------------------------------------------------------------------
| Capital expenditure, | 3.0% | 0.3% | | 0.7% |
| % of net sales | | | | |
--------------------------------------------------------------------------------
| Personnel on average | 8 841 | 6 882 | 28.5% | 7 312 |
--------------------------------------------------------------------------------
| Personnel at the end | 9 830 | 6 993 | 40.6% | 7 900 |
| of period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of | 38 977 082 | 38 975 190 | | 38 975 190 |
| shares outstanding | | | | |
--------------------------------------------------------------------------------
| Number of shares | 39 023 840 | 38 975 190 | | 38 975 190 |
| outstanding at the | | | | |
| end of period | | | | |
--------------------------------------------------------------------------------
| Diluted number of | 38 806 885 | 37 597 129 | | 38 187 925 |
| shares outstanding | | | | |
| on average | | | | |
--------------------------------------------------------------------------------
| Highest share price, | 2.19 | 1.94 | | 1.99 |
| EUR | | | | |
--------------------------------------------------------------------------------
| Lowest share price, | 1.85 | 1.15 | | 1.15 |
| EUR | | | | |
--------------------------------------------------------------------------------
| Average share price, | 2.00 | 1.44 | | 1.60 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Traded shares, Mpcs | 1.4 | 0.4 | | 1.9 |
--------------------------------------------------------------------------------
| Traded shares, MEUR | 2.9 | 0.6 | | 3.1 |
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NOTES TO THE INTERIM REPORT
This Interim Report has been prepared in accordance with the international
financial accounting standard IAS 34 Interim Reports. The same accounting
principles are applied in this Interim Report as in the Financial Statements.
Salcomp has, as of 1 January 2009, applied the revised IAS 1 Presentation of
Financial Statements standard, as well as the new IFRS 8 Operating Segments
standard. Other amended standards or interpretations have not affected this
Interim Report. Adoption of IFRS 8 has no impact on the number of reported
segments, but only on the notes presented in the Financial Statements. Salcomp
has one business segment, chargers. Internal management reporting complies with
the IFRS reporting and due to this, separate adjustments are not presented.
--------------------------------------------------------------------------------
| LIABILITIES |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | Change % | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| For own dept | | | | |
--------------------------------------------------------------------------------
| | Company and real | 82 000 | 82 000 | 0.0% | 82 000 |
| | estate mortgages | | | | |
--------------------------------------------------------------------------------
| | Others | 5 | 5 | 0.0% | 5 |
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| Leasing and rental | 7 130 | 8 608 | -17.2% | 7 359 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | 89 135 | 90 613 | -1.6% | 89 364 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY INFORMATION |
--------------------------------------------------------------------------------
| | 4-6/10 | 1-3/10 | 10-12/0 | 7-9/09 | 4-6/09 | 7/09-6/1 |
| | | | 9 | | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sold chargers, | 68 586 | 65 941 | 69 817 | 68 040 | 58 662 | 272 384 |
| kpcs | | | | | | |
--------------------------------------------------------------------------------
| Net sales, | 72 170 | 59 635 | 62 699 | 68 078 | 61 145 | 262 582 |
| kEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating | 2 327 | 1 480 | 3 032 | 4 385 | 3 780 | 11 224 |
| result, kEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating | 3.2% | 2.5% | 4.8% | 6.4% | 6.1% | 4.3% |
| margin, % | | | | | | |
--------------------------------------------------------------------------------
| Average sales | 1.05 | 0.90 | 0.90 | 1.00 | 1.04 | 0.96 |
| price, EUR | | | | | | |
--------------------------------------------------------------------------------
OPTION RIGHTS
During the financial year 2007, the General Meeting of Shareholders established
an option program with a total of 2,047,500 option rights that entitle to
subscribe the same amount of new shares of the company. The option program is
divided to symbols 2007A, 2007B and 2007C. The Board of Directors has not
granted option rights to Group key personnel during the financial year. The
share based incentives are conditional. The vesting conditions are based on that
the total shareholder return is at least 8 % per annum. Options are lost when a
person is leaving the company before the settlement period begins. The Board of
Directors can decide in these cases that the stock option owner is entitled to
keep the options or a part of them. The fair value has been determined using the
Cox-Ross-Rubinstein binomial model.
--------------------------------------------------------------------------------
| Program symbol | 2007A | 2007B | 2007C | Total |
| | | | | options |
--------------------------------------------------------------------------------
| Number of options | 657 500 | 682 500 | 707 500 | 2 047 500 |
--------------------------------------------------------------------------------
| Vesting period | 1.4.2007- | 1.4.2008- | 1.4.2009- | |
| | 31.3.2010 | 31.3.2011 | 31.3.2012 | |
--------------------------------------------------------------------------------
| Options granted | 497 500 | 545 000 | 627 500 | 1 670 000 |
| before the current | | | | |
| financial year | | | | |
--------------------------------------------------------------------------------
| Options granted | 0 | 0 | 0 | |
| during the current | | | | |
| financial year | | | | |
--------------------------------------------------------------------------------
| Options forfeited | -32 500 | -37 500 | 0 | -70 000 |
| during the current | | | | |
| financial year | | | | |
--------------------------------------------------------------------------------
| Settlement (shares | 1 | 1 | 1 | |
| / option) | | | | |
--------------------------------------------------------------------------------
| Settlement period | 1.4.2010- | 1.4.2011- | 1.4.2012- | |
| | 31.3.2012 | 31.3.2013 | 31.3.2014 | |
--------------------------------------------------------------------------------
| Grant date | 02.05.07 | 07.05.08 | 11.08.09 | |
--------------------------------------------------------------------------------
| Exercise price | 2.81 | 3.33 | 1.40 | |
--------------------------------------------------------------------------------
| Share price at | 3.51 | 3.79 | 1.51 | |
| grant date | | | | |
--------------------------------------------------------------------------------
| The fair value of | 1.44 | 1.44 | 0.61 | |
| option at grant | | | | |
| date | | | | |
--------------------------------------------------------------------------------
SHARE BASED INCENTIVE PROGRAM
The Board of Directors of Salcomp Plc has approved two new share-based incentive
programs for the Group key personnel. The new programs are a Matching Share
Program targeted at the members of the Extended Global Management Team, as well
as a Performance Share Program targeted at 53 key employees including also the
members of the Extended Global Management Team. Both Programs include one
earning period, from calendar year 2010 to 2012. The potential rewards from both
the Matching and Performance Share programs will be paid partly in Company
shares and partly in cash during 2013. The cash payment is intended to cover the
personal taxes and tax-related costs arising from the reward. No reward will be
paid to a key person, if his or her employment or service in a Group Company
ends before the reward payment. The rewards to be paid on the basis of the
earning period will correspond to the value of maximum 532,000 Salcomp Plc
shares. Global Management Team can earn a total of 281,000 pcs of Salcomp Plc
shares during the total earning period. Releases relating to the new incentive
program have been issued in May 19 and June 21, 2010.
--------------------------------------------------------------------------------
| RELATED PARTY INFORMATION |
| (EUR 1 000) |
--------------------------------------------------------------------------------
| Related party | 30.6.2010 | 30.6.2009 | Change % | 31.12.2009 |
| transactions with | | | | |
| Nordstjernan AB | | | | |
--------------------------------------------------------------------------------
| Capital loans | 0 | 10 000 | - | 10 000 |
--------------------------------------------------------------------------------
| Interest payable of | 0 | 176 | - | 787 |
| capital loans | | | | |
--------------------------------------------------------------------------------
| Sales of receivables | 0 | 83 | - | 0 |
--------------------------------------------------------------------------------
| Interest expense of the | 553 | 176 | 214.2% | 787 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Salcomp has renewed the financing arrangements in May. In this connection, |
| the capital loans have been repaid to Nordstjernan AB. Release on the issue |
| has been published in May 25, 2010. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OWN SHARES |
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 |
--------------------------------------------------------------------------------
| Parent company own shares | 337 000 | 0 |
| (pcs) | | |
--------------------------------------------------------------------------------
CALCULATION OF FINANCIAL RATIOS
Average personnel: Average number of personnel at end of each month
Return on equity (%) = Result for the period x 100 : Equity on average
Return on capital employed (%) = (Result before tax + interest charges and other
financial expenses) x 100 : (Total liabilities less interest-free debt (on
average))
Return on net assets (%) = Operating result 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 : Total liabilities less received advance
payments
Gearing (%) = (Interest-bearing debt less cash and cash equivalents) x 100 :
Equity
Earnings per share = Result for the period : Weighted average number of shares
outstanding during the period
Equity per share = Equity : number of shares outstanding at the end of period
Earnings per share, diluted = Result for the period : Weighted average number of
shares outstanding during the period, adjusted for the share issue
