Cencorp Corporation Interim Report 13 November 2013 at 12.00 Finnish time
CENCORP CORPORATION’S INTERIM REPORT JANUARY – SEPTEMBER 2013
The net sales of Cencorp Corporation’s (“Cencorp”) continuing operations for the reporting period January – September 2013 was EUR 8.9 million (EUR 12.1 million in 2012). The operating profit of continuing operations was EUR -2.8 million (-2.4), profit for the period EUR -4.0 million (-2.9), earnings per share were EUR -0.01 (-0.008) and EBITDA was EUR -1.4 million (-0.8).
Major part of the loss (operating profit for the period EUR-2.8 million) generates from low production volume of mobile phones and antennas at the Beijing factory which belongs to Cencorp’s Clean Energy Solutions segment. The company is trying to give up production of other products except for Conductive Back Sheets (CBS).
GENERAL
Cencorp belongs to the Finnish Savcor Corporation (“Savcor”). Savcor Group companies owned approximately 78.9 % of the Cencorp shares on 30 September 2013.
More information on principle activities and events during the reporting period can be found in the stock exchange releases published on Cencorp’s website at www.cencorp.com.
The Interim Report has been drawn up in compliance with the IAS 34 Interim Financial Reporting standard. In the Interim Report Cencorp has applied the same accounting principles as in the annual report 2012. The Interim Report has not been audited.
FINANCIAL DEVELOPMENT
14 May 2013 Cencorp announced that the company changes its reporting system to comply with the company’s Cleantech strategy. As from 1 January 2013 Cencorp reports of three business segments. The segments are Laser and Automation Applications (LAS), Life Cycle Management (LCM) and Clean Energy Solutions (CES). CES also includes the former Special Components segment. The comparison figures for the corresponding period in 2012 are only available of the net sales. Other figures that would be comparable and reliable enough are not available. Cencorp’s new segment information is based on the management’s internal reporting and on the organisation structure of the company.
The figures in brackets are comparison figures for the corresponding period in 2012, unless stated otherwise. 29 May 2012 Cencorp announced that it exits from its unprofitable decoration business and closes down its plant in Guangzhou, China, producing components for decorative applications. Thus, comparison figures for the last year do not include operations in Guangzhou.
July - September 2013 (continuing operations)
- Cencorp Group’s net sales increased by 0.7 per cent to EUR 3.07 million (EUR 3.05 million).
- EBITDA was EUR -0.6 million (EUR -0.8 million).
- Operating profit was EUR -1.1 million (EUR -1.3 million).
- The Group’s profit before taxes was EUR -1.7 million (EUR -1.6 million).
- Profit for the period was EUR -1.7 million (EUR -1.6 million).
- Earnings per share were EUR -0.005 (EUR -0.005) and diluted earnings per share EUR -0.005 (EUR -0.005).
- Net sales of the Laser and Automation Applications segment (LAS) increased by 89.5 per cent to EUR 1.5 million (EUR 0.8 million) and operating profit was EUR -0.3 million. The segment’s EBITDA was
EUR -0.2 million.
- Net sales of the Life Cycle Management segment (LCM) decreased by 18.4 per cent to EUR 0.7 million (EUR 0.8 million) and operating profit was EUR 0.03 million. The segment’s EBITDA was EUR 0.05 million.
- Net sales of the new Clean Energy Solutions segment (CES) decreased by 38.2 per cent to EUR 0.9 million (EUR 1.4 million) due to decrease in the antenna production in Beijing and operating profit was EUR -0.8 million. The segment’s EBITDA was
EUR -0.5 million.
January - September 2013 (continuing operations)
- Cencorp Group’s net sales decreased by 26.3 per cent to EUR 8.9 million (EUR 12.1 million).
- EBITDA was EUR -1.4 million (EUR -0.8 million).
- Operating profit was EUR -2.8 million (EUR -2.4 million).
- The Group’s profit before taxes was EUR -4.0 million (EUR -2.9 million).
- Profit for the period was EUR -4.0 million (EUR -2.9 million).
- Earnings per share were EUR -0.01 (EUR -0.008) and diluted earnings per share EUR -0.01 (EUR -0.008).
- Net sales of the Laser and Automation Applications segment (LAS) decreased by 11.0 per cent to EUR 4.1 million (EUR 4.6 million) and operating profit was EUR -1.2 million. The segment’s EBITDA was
EUR -0.8 million.
- Net sales of the Life Cycle Management segment (LCM) decreased by 18.3 per cent to EUR 2.3 million (EUR 2.8 million) and operating profit was EUR 0.1 million. The segment’s EBITDA was EUR 0.2 million.
- Net sales of the new Clean Energy Solutions segment (CES) decreased by 43.3 per cent to EUR 2.7 million (EUR 4.7 million) and operating profit was EUR -1.8 million. The segment’s EBITDA was
EUR -0.8 million.
MANAGING DIRECTOR IIKKA SAVISALO’S REVIEW
The net sales for the reporting period increased slightly compared to the corresponding period in 2012. The EBITDA improved as well. There was remarkable growth in the LAS segment as many of the orders received in the spring proceeded in delivery phase. However, the EBITDA of the LAS segment did not yet turn into profit. The LCM segment was able to make positive EBITDA despite the segment’s decreased net sales. The CES segment’s decreasing net sales and loss are generating from decreasing amount of orders in mobile phone component projects. Cencorp does no longer consider production of low-profit mobile phone components as the company’s focus area and is reviewing opportunities to totally give up producing these components as soon as possible. In the reporting period Conductive Back Sheets for photovoltaic modules produced in Beijing did not yet generate any remarkable net sales. Since the end of the reporting period CBS deliveries to Cencorp’s own module factory in Mikkeli have started.
Although Cencorp’s quotation base stayed on good level for the whole third quarter the company did not succeed to turn the quotations into orders as expected, particularly among European customers who in uncertain economical conditions considered carefully their future capacity needs. However, Cencorp did not lose the orders and since the end of the reporting period Cencorp has been able to secure major part of them. Further, Cencorp succeeded to turn its order book that was decreasing during the summer, back to growth.
In the reporting period and since then Cencorp has continued actions to improve profitability in the traditional LAS and LCM segments. In September and October Cencorp carried out statutory negotiations in order to focus its business model and to decrease costs. As a result of the negotiations no notices were given but the targeted savings will be gained with lay-offs carried out in phases, with flexible working hour arrangements and by decreasing certain remunerations as well as by outsourcing certain ramp up functions. The lay-offs do not concern
Cencorp's Clean Energy Solutions segment. Cencorp is aiming to increase profitability in its traditional industrial automation business by targeting resources to improve key customer service. The company will give up low-profit or unprofitable operations and costs in support functions will be decreased. Investments in products for Cencorp’s industrial automation customers will from now on be focused on the company’s key areas: solutions for depaneling, odd-form assembly for special components, laser applications and final assembly. By focusing its operations on these core business areas Cencorp believes it can provide its customers with automation offering that is one of the most modern and most competitive in the world, and further, with less costs than earlier.
In the future Cencorp’s CES segment will be the heart of the company’s growth. The company’s gross investments in photovoltaic module technology amounted to EUR 2.4 million. The investment program continues intensively for more than a year. At the end of 2014 Cencorp is going to open a full-sized and fully-automated production line for next generation CBS based modules in Mikkeli. In the reporting period ProxEnergy BV and Cencorp Corporation signed a distribution agreement on selling photovoltaic modules, manufactured by Cencorp, in Cape Verde and the Netherlands. The first order based on the distribution agreement values for ca. EUR 0.15 million.
OPERATING ENVIRONMENT
Cencorp operates in industries applying electronics and Cleantech technology.
Cencorp’s operating environment is global. The company’s traditional customers in the electronics industry as well as new CES customers are companies that provide products and services worldwide. 93.3 per cent of Cencorp’s products and services are either exported from Finland or they are manufactured by Cencorp in the US and in China.
MARKET OUTLOOK
In Cencorp’s LAS segment short and middle-term outlook has improved. The amount of Cencorp’s quotations has clearly risen and opportunities for significant growth can been seen in odd-form assembly applications, in particular. Cencorp has succeeded to update its application range. Cencorp’s next generation odd-form solutions, including Cencorp 1500 OF which will be the first one to be introduced in Productronica trade fair in Munich this week.
The LAS segment’s EBITDA target of 5 % at the minimum is reachable in within a reasonable time.
The demand for LCM services has continued to be reasonable and the company’s organization and products are ready to meet growing demand. The segment’s operations are profitable. However, the segment’s EBITDA target of 15 % at the minimum has not yet been achieved. The company continues improving the efficiency of its operations.
In the CES segment the expectations lie in sales of solar modules, module components and production technology. In negotiations with several photovoltaic module manufactures concerning CBS deliveries it has become clear that customers’ product development don’t enhance the transition from old technology to next generation modules as fast as expected. However, Cencorp’s CBS seems to be very competitive product, as mass production is about to begin, and the company has not dropped its internal expectations for the product. Close cooperation with several photovoltaic module manufacturers has generated many new opportunities for Cencorp to utilize its innovation capabilities and to bring its customers significant added value.
For about one year Cencorp has been developing fully automated production technology for CBS modules. The technology has been introduced to almost all of the most significant solar module manufacturers. Innovations relating to the technology have been protected by applying patents. There is only a limited amount of competitors in the market and the customer feedback on Cencorp’s production technology has been positive. Cencorp’s production technology has special features: production lines have high level of automation, they are easy to use and require only little space. Start-up cost for setting up solar module production from zero amounts to only EUR 10 – 15 million depending on the existing level of existing infrastructure and required capacity. Cencorp is negotiating with several existing module manufacturers as well as with companies planning to establish local module production. Cencorp’s first full-size production plant, based on the company’s own design, planned to operate as the company’s sample factory, is expected to be opened in Mikkeli in 2014, provided the company has sufficient capital for the project.
The third product group in Cencorp’s solar module strategy includes a series of photovoltaic modules based on Cencorp’s own CBS technology. The first ready products have already been delivered. Cencorp will soon launch a product family with various cell structures. Cencorp is negotiating with several traditional energy companies and with global companies producing solar energy on providing module installations for their use.
Cencorp’s Cleantech strategy, if realized, will remarkably change the company’s cost structure and the targets set for the near future. As Cencorp is now in a strong transition phase, following the new strategy, Cencorp cannot assess how the change in company’s business focus will impact to the company and Cencorp has decided not to give any financial guidance for the time being, as stated in the release of 21 August 2012. As the transition phase is still continuing Cencorp does not give any financial guidance either during 2013.
Cencorp informs of its Cleantech strategy in more detail in a separate release of 13 November 2013.
Cencorp’s future outlook will be highly dependent on the company’s ability to reach the targeted market position in the global photovoltaic module market as well as on the company’s long-term and short-term financing. Cencorp’s goal is to reach strong market position as provider of locally produced high-quality photovoltaic modules. Risks are handled in more detail in the item Risk management, risks and uncertainties of this Interim Report.
LONG-TERM OBJECTIVES FOR MANAGING DIRECTOR
On 21 August 2012 Cencorp’s Board of Directors published its long-term financial and other objectives for Managing Director as follows:
- Thorough but fast transition from a company manufacturing only production automation systems and special components into a company that develops and provides Cleantech applications using laser and automation technology, a company with a strong market position as a provider, of locally, produced, high-quality photovoltaic modules and a company operating in various geographical markets.
- Cencorp’s goal is to increase its shareholder value with growth and profitability. Cencorp aims for growth in Cleantech business where the company has good possibilities to achieve a strong global position and faster growth.
- Laser and Automation Applications segment has its main focus on the Life Cycle Management of systems and on equipment with growth expectations for service business.
- In the long run Cencorp is aiming for remarkable growth in its net sales with net sales target of more than EUR 200 million for 2016, with growth coming mainly from Cleantech operations, especially from solar photovoltaic and fuel cell applications, provided the company has sufficient capital.
The long-term objectives set for the Managing Director involve also risks and the long-term objectives should not be considered as the company’s financial guidance. Even though the objectives are based on market knowledge and technical surveys, the risks are significant and it is not certain if the Managing Director reaches all or part of the targets set for him.
FINANCING
Cash flow from business operations before investments in January – September was EUR -1.6 million (EUR 0.95 million). Trade receivables at the end of the reporting period were EUR 1.7 million (EUR 2.2 million). Net financial items amounted to EUR -1.2 million (EUR -0.5 million).
At the end of September, the equity ratio was 8.5 per cent (27.3 %) and equity per share was EUR 0.005 (EUR 0.02). The equity ratio including capital loans was 30.6 per cent (33.2 %). At the end of the reporting period, the Group’s liquid assets totaled EUR 0.2 million (EUR 0.5 million) unused export credit limits, bank guarantee limits and factoring loans amounted to EUR 1.1 million (EUR 1.6 million).
Keskinäinen Eläkevakuutusyhtiö Etera and Oy Ingman Finance Ab subcribed all of the convertible bond I/2013 of EUR 2.1 million, issued by Cencorp 17 May 2013.
As previously announced, Cencorp’s financing position has been tight and it involves risks. As the investments are still continuing and the company is preparing for significant increase in its net sales, working capital is probably to be tight until the operations turn into profit in terms of EBITDA. As previously announced Cencorp has commenced preparations for a share issue.
For this purpose Cencorp’s Board of Directors have given a notice, as published on 13 November 2013, to extraordinary general meeting to be held on 4 December 2013 to decide on an authorisation to the Board of Directors, based on which the Board of Directors can decide on a share issue to the shareholders of the company and to the holders of the convertible bonds of the company, either in one or in several occasions, so that the maximum number of new shares to be issued based on the authorization is 510 000 000 new shares of the company.
The objective of the share issue is to finance the execution of the company’s photovoltaic module business plan. Cencorp will inform later on the terms and schedule of the share issue. In addition, the Board of Directors has commenced preparations for convening another extraordinary general meeting to be held after the execution of the aforesaid share issue to decrease the amount of shares of the company without reducing share capital (so called reverse split)in order to increase trading activity and improve price formation of shares of the company.
Cencorp agreed with its financiers on amendment of the financial agreements and announced on 27 September 2013 that:
- Danske Bank Oyj’s financial facility agreement totaling EUR 4 million was continued until the end of January 2014;
- the maturity date of a convertible bond of some EUR 1.2 million from Savcor Group Oy was extended until the end of January 2014; and
- the maturity date of a loan of EUR one million from Savcor Invest BV (former AC Invest BV), a daughter company of Savcor Group Oy, was extended until the end of January 2014.
According to estimates available, the company’s financing position will continue to be tight. According to the opinion of Cencorp management the working capital of the company is not sufficient to complete the ongoing investment plan, based on the company’s strategy, for next twelve (12) months. From the company’s point of view, one of the most important risks is sufficiency of working capital. Cencorp has loans which will be due in following twelve (12) months. Cencorp’s operational conditions will be highly dependent on whether Cencorp manages to rearrange the loans. Therefore the company has, in addition to the above-mentioned measures, started negotiations with its main financiers and owners on measures to strengthen the financing position until the company’s cash flow is expected to return to positive. With these actions Cencorp believes that the company has secured sufficient working capital for the next twelve (12) months and will be able to complete its strategic investments.
RESEARCH AND DEVELOPMENT
The Group’s research and development costs during the January – September period amounted to EUR 1.4 million (EUR 1.0 million) or 15.3 (8.1) per cent of net sales.
INVESTMENTS
Gross investments during the January – September period amounted to EUR 3.0 million (EUR 1.2 million). The largest investments were EUR 2.5 million in development costs.
PERSONNEL
At the end of September the Group employed 152 (177) people, out of which 54 persons worked in Finland, 85 persons in China and 13 persons in other countries. During the reporting period, salaries and fees totalled EUR 3.1 million (EUR 3.9 million).
SHARES AND SHAREHOLDERS
Cencorp’s share capital amounts to EUR 3 425 059.10. The number of shares is 342 161 270. The company has one series of shares, which confer equal rights in the company. Cencorp did not own any of its own shares at the end of the reporting period.
The company had a total of 4859 shareholder at the end of September 2013, and 0.8 per cent of the shares were owned by foreigners. The ten largest shareholders held 89.0 per cent of the company’s shares and voting rights on 30 September 2013.
The largest shareholders on 30 September 2013
| Shares | Votes | |
| 1. SAVCOR GROUP LIMITED | 133 333 333 | 39,0 |
| 2. SAVCOR GROUP OY | 119 235 078 | 34,8 |
| 3. SAVCOR INVEST BV | 17 499 999 | 5,1 |
| 4. KESKINÄINEN ELÄKEVAKUUTUSYHTIÖ ETERA | 16 394 735 | 4,8 |
| 5. GASELLI CAPITAL OY | 11 000 000 | 3,2 |
| 6. GASELLI CAPITAL PARTNERS OY | 2 050 000 | 0,6 |
| 7. JOKELA MARKKU | 1 804 728 | 0,5 |
| 8. PARPOLA VILLE | 1 478 759 | 0,4 |
| 9. FRATELLI OY | 877 000 | 0,26 |
| 10. PAASILA MATTI | 812 001 | 0,24 |
| Other | 37 710 597 | 11,0 |
| TOTALLY | 342 161 270 | 100,0 |
The members of the Board of Directors and the President and CEO, either directly or through companies under their control, held a total of 270 068 410 shares in the company on 30 September 2013, representing about 78.9 per cent of the company’s shares and voting rights. Iikka Savisalo, Cencorp’s Managing Director, either directly or through companies under his control, held a total of 270 068 410 shares in the company, 8,931,000 options connected to bond I/2010 and 21,428,571 options connected to bond I/2012.
The price of Cencorp’s share varied between EUR 0.06 and 0.10 during the January – September period. The average price was EUR 0.08 and the closing price at the end of September EUR 0.08. A total of 18.2 million Cencorp shares were traded at a value of EUR 1.5 million during the January – September period. The company’s market capitalization at the end of September stood at EUR 27.4 million.
No share options were granted to the company’s management during the reporting period. On 30 September 2013, the company had 8,931,000 options connected to bond I/2010 with a subscription period ending on 25 May 2015. Savcor Group Oy holds the options connected to bond I/2010. On 30 September 2013 the company hold 21,428,571 options connected to bond I/2012 with subscription period ending on 7 September 2014. Options connected to bond I/2012 are held by SCI Invest Oy and Savcor Group Oy. On 30 September 2013 the company had 30,000,000 options connected to bond I/2013 with a subscription period ending on 2 June 2015. The options connected to bond I/2013 are held by Keskinäinen Vakuutusyhtiö Etera and Oy Ingman Finance Ab.
SHARE ISSUE AUTHORIZATIONS IN FORCE
1,069,000 shares remain under the authorization given by Cencorp’s Annual General Meeting on 28 April 2009 to issue 10,000,000 new shares in Cencorp.
Cencorp’s Extraordinary General Meeting held on 30 January 2012 decided to authorize the Board of Directors to issue 100,000,000 new shares. There were no other resolutions made at the Extraordinary General Meeting. 48,571,429 shares remain under the authorization. In the second half of 2013, 4,000,000 shares, under the authorization, will be issued in a directed share issue for Sunweb Solar to pay part of the purchase price of the transaction carried out in January.
LIQUIDITY PROVIDING IN CENCORP CORPORATION'S SHARE ENDED
FIM Pankki Oyj's liquidity providing in Cencorp Corporation's share ends as published on 1 November 2013. The liquidity providing is valid until on 29 November 2013.
NEGOTIATIONS WITH AVERY DENNISON HAVE BEEN CLOSED
On 21 August Cencorp announced that the company and Avery Dennison Corporation (”Avery Dennison”), a US based company, have signed a Memorandum of Understanding (MOU) according to which Cencorp acquires Avery Dennison’s Conductive Back Sheet (CBS) business and related intellectual property rights. The MOU was non-binding. The negotiations between Avery Dennison and Cencorp have been closed for now as published on 21 August 2013.
MAIN TERMS OF THE MEMORANDUM OF UNDERSTANDING SIGNED WITH A MAJOR CHINESE SOLAR PHOTOVOLTAIC (PV) MODULE MANUFACTURER ON DELIVERING CONDUCTIVE BACK SHEETS
On 5 November 2012 Cencorp announced that the company has signed a Memorandum of Understanding on delivering Conductive Back Sheets (CBS) to one of the leading Chinese PV (photovoltaic) module manufacturers. The Memorandum of Understanding is non-binding. According to the customer's written estimate received from the customer at the end of January 2013 CBS mass deliveries should have commenced during the first half of 2013. Commencing of the mass production always requires customer's internal evaluating process which still continues and the customer has not yet started mass production. However, CBS components have passed Cencorp´s internal technical requirements.
The risks related to the non-binding MOU signed with the Chinese solar photovoltaic module manufacturer have been handled in more detail in the item “Risk management, risks and uncertainties” of this Interim Report.
RISK MANAGEMENT, RISKS AND UNCERTAINTIES
Cencorp’s Board of Directors is responsible for the control of the company’s accounts and finances. The Board is responsible for internal control, while the President and CEO handles the practical arrangement and monitors the efficiency of internal control. Business management and control are taken care of using a Group-wide reporting and forecasting system.
The purpose of risk management is to ensure that any significant business risks are identified and monitored appropriately. The company’s business and financial risks are managed centrally by the Group’s financial department, and reports on risks are presented to the Board of Directors as necessary.
Due to the small size of the company and its business operations, Cencorp does not have an internal auditing organization or an audit committee.
The sufficiency of the company’s financing and working capital involve risks that are handled in more detail in the item Financing of this Interim Report. According to available estimates, the company's financing position will continue to be tight. According to the opinion of the Cencorp management the working capital of the company is not sufficient for the next twelve (12) months to realize the strategic investment plan going on in the company. From the company’s point of view one of the most significant risks is the sufficiency of working capital. Cencorp has loans which will be due in the following twelve (12) months, and whether the company succeeds or fails to rearrange the loans will have a significant effect in the company’s operations. Therefore the company has, in addition to the above-mentioned measures, started negotiations with its main financiers and owners on measures to strengthen the financing position until the company’s cash flow is expected to return to positive. By these actions Cencorp believes to secure sufficiency of working capital for the next twelve (12) months and to finalize investments according to the company’s strategy.
As announced earlier Cencorp has commenced preparations for a share issue. Cencorp’s Board of Directors have given a notice, as published on 13 November 2013, to extraordinary general meeting to be held on 4 December 2013 to decide on an authorisation to the Board of Directors, based on which the Board of Directors can decide on a share issue to the shareholders of the company and to the holders of the convertible bonds of the company, either in one or in several occasions, so that the maximum number of new shares to be issued based on the authorization is 510 000 000 new shares of the company. A share issue to be arranged based on the aforesaid authorization involves risks. It is not secured that the company will be able to collect capital to finance the establishing of photovoltaic module business plan. If the share issue doesn’t materialize as planned, there is a risk that the establishment of Cencorp’s Cleantech strategy will be postponed or even fail, partly or totally.
As it is difficult to make forecasts in an industry that is dependent on economic cycles, the biggest business risks are related to fluctuations in the demand for products and to the adjustment of operations to meet demand.
In terms of profitability, the most essential risks are related to the achievement of a sufficient invoicing volume in all three business segments and the success achieved with the programs underway at Cencorp to improve profitability, such as improvements in productivity and business flexibility through outsourcing production.
In terms of operations, the biggest risks are related to outsourcing in-house equipment production to contract manufacturers, in particular to whether the production chain efficiency targets are achieved as planned.
Cencorp has announced that its objective is to transform from a company manufacturing only production automation systems and special components into a company that develops and provides cleantech applications using laser and automation technology as well as into a company that has a strong market position as a provider of, in various geographical areas, locally produced high-quality photovoltaic modules. Achievement of the objectives as well as realization of the transformation involves risks. Even though Cencorp's strategy and objectives are based on market knowledge and technical surveys, the risks are significant and it is not certain if the company reaches all or part of the targets set for it. Cencorp's future outlook will be highly dependent on the company's ability to reach the targeted market position in the global photovoltaic module market as well as on the company's long-term financing.
The execution of the non-binding Memorandum of Understanding signed with a major Chinese photovoltaic module manufacturer involves risks. The final terms of an agreement are still under negotiations, thus execution of the agreement is not yet guaranteed. Additionally, the agreement is subject to Cencorp's short-term and long-term financing which is still under negotiation. Thus, Cencorp is not yet able to estimate the agreement's possible execution, effective date neither the agreement's impact in Cencorp nor the final risks relating to it. However, in regard to the Memorandum of Understanding on delivering CBS to the Chinese photovoltaic module manufacturer, the estimated minimum value of EUR 20 million for three years’ period from the start of mass production will probably stay non-binding even though the actual Memorandum of Understanding turns into a binding supply contract. In this business customers do not give binding order estimations.
The long-term objectives set for the Managing Director involves also risks and the long-term objective should not be considered as the company’s financial guidance. Even though the objectives are based on market knowledge and technical surveys, the risks are significant and it is not certain if the Managing Director reaches all or part of the targets set for him.
Other risks connected to Cencorp have been presented in more detail in the Annual Report for 2012.
In Mikkeli, 13 November 2013
Cencorp Corporation
BOARD OF DIRECTORS
For more information please contact:
Cencorp: Iikka Savisalo, President and CEO, tel. +358 40 521 6082, iikka.savisalo@savcor.com
Distribution:
NASDAQ OMX, Helsinki
Main media
www.cencorp.com
| Consolidated statement of comprehensive income | ||||||
| (unaudited) | ||||||
| 1 000 EUR | 7-9/2013 | 7-9/2012 | 1-9/2013 | 1-9/2012 | 1-12/2012 | |
| Continuing operations | ||||||
| Net sales | 3 067 | 3 045 | 8 944 | 12 129 | 15 441 | |
| Cost of sales | -2 909 | -2 994 | -8 387 | -11 396 | -14 731 | |
| Gross profit | 159 | 52 | 557 | 733 | 710 | |
| Other operating income | 41 | 49 | 932 | 1 358 | 1 791 | |
| Product development expenses | -429 | -306 | -1 371 | -988 | -1 458 | |
| Sales and marketing expenses | -442 | -487 | -1 225 | -1 452 | -2 072 | |
| Administrative expenses | -354 | -614 | -1 436 | -2 007 | -2 669 | |
| Other operating expenses | -27 | -7 | -282 | -56 | -235 | |
| Operating profit | -1 052 | -1 314 | -2 824 | -2 412 | -3 932 | |
| Financial income | -85 | 309 | 301 | 1 255 | 380 | |
| Financial expenses | -534 | -605 | -1 466 | -1 747 | -1 224 | |
| Profit before taxes from continuing operations | -1 672 | -1 610 | -3 989 | -2 904 | -4 776 | |
| Income taxes | -15 | 1 | -14 | 27 | 26 | |
| Profit/loss for the period from continuing operations | -1 686 | -1 609 | -4 004 | -2 877 | -4 750 | |
| Discontinued operations | ||||||
| Profit/loss after tax for the period from discontinued operations | -35 | -255 | -44 | -9 079 | -8 606 | |
| Profit/loss for the period | -1 722 | -1 864 | -4 048 | -11 956 | -13 356 | |
| Profit/loss attributable to: | ||||||
| Shareholders of the parent company | -1 722 | -1 864 | -4 048 | -11 956 | -13 356 | |
| Earnings/share (diluted), eur | -0,005 | -0,01 | -0,01 | -0,03 | -0,04 | |
| Earnings/share (basic), eur | -0,005 | -0,01 | -0,01 | -0,03 | -0,04 | |
| Continuing operations: | ||||||
| Earnings/share (diluted), eur | -0,005 | -0,005 | -0,01 | -0,008 | -0,01 | |
| Earnings/share (basic), eur | -0,005 | -0,005 | -0,01 | -0,008 | -0,01 | |
| Profit/loss for the period | -1 722 | -1 864 | -4 048 | -11 956 | -13 356 | |
| Other comprehensive income | ||||||
| Translation difference | 11 | -5 | 82 | 59 | 93 | |
| Net other comprehensive income to be reclassified to | ||||||
| profit or loss in subsequent periods | 11 | -5 | 82 | 59 | 93 | |
| Total comprehensive income for the period | -1 711 | -1 870 | -3 966 | -11 897 | -13 263 | |
| Total comprehensive income attributable to: | ||||||
| Shareholders of the parent company | -1 711 | -1 870 | -3 966 | -11 897 | -13 263 | |
| Consolidated statement of financial position | ||||
| (unaudited) | ||||
| 1 000 EUR | 30.9.2013 | 30.9.2012 | 31.12.2012 | |
| ASSETS | ||||
| Non-current assets | ||||
| Property, plant and equipment | 6 010 | 7 000 | 6 688 | |
| Consolidated goodwill | 2 967 | 2 967 | 2 967 | |
| Other intangible assets | 5 186 | 3 049 | 2 979 | |
| Available-for-sale investment | 10 | 10 | 10 | |
| Deferred tax assets | 7 | 9 | 9 | |
| Total non-current assets | 14 179 | 13 035 | 12 652 | |
| Current assets | ||||
| Inventories | 2 491 | 3 293 | 2 693 | |
| Trade and other non-interest-bearing receivables | 2 624 | 3 083 | 2 695 | |
| Cash and cash equivalents | 237 | 300 | 583 | |
| Total current assets | 5 351 | 6 676 | 5 971 | |
| Assets classified as held for sale | 0 | 1 284 | 79 | |
| Total assets | 19 530 | 20 996 | 18 702 | |
| EQUITY AND LIABILITIES | ||||
| Equity attributable to shareholders of the parent company | ||||
| Share capital | 3 425 | 3 425 | 3 425 | |
| Other reserves | 44 123 | 43 344 | 43 691 | |
| Translation difference | 3 441 | 643 | 677 | |
| Retained earnings | -49 340 | -41 692 | -43 091 | |
| Total equity | 1 649 | 5 721 | 4 703 | |
| Non-current liabilities | ||||
| Non-current loans | 3 142 | 519 | 2 095 | |
| Deferred tax liabilities | 20 | 22 | 26 | |
| Total non-current liabilities | 3 162 | 542 | 2 121 | |
| Current liabilities | ||||
| Current interest-bearing liabilities | 6 585 | 4 824 | 4 731 | |
| Trande and other payables | 7 919 | 7 426 | 6 850 | |
| Current provisions | 215 | 269 | 257 | |
| Total current liabilities | 14 719 | 12 519 | 11 839 | |
| Liabilities directly associated with assets classified as held for sale | 0 | 2 214 | 40 | |
| Total liabilities | 17 881 | 15 275 | 14 000 | |
| Equity and liabilities total | 19 530 | 20 996 | 18 702 | |
| Consolidated statement of cash flows | |||||
| (unaudited) | |||||
| 1 000 EUR | 1-9/2013 | 1-9/2012 | 1-12/2012 | ||
| Cash flow from operating activities | |||||
| Income statement profit/loss from continuing operations before taxes | -3 989 | -2 905 | -4 776 | ||
| Income statement profit/loss from discontinued operations before taxes | -44 | -9 079 | -8 606 | ||
| Income statement profit/loss before taxes | -4 034 | -11 984 | -13 382 | ||
| Non-monetary items adjusted on income statement | |||||
| Depreciation and impairment | + | 1 440 | 7 977 | 8 682 | |
| Gains/losses on disposals of non-current assets | +/- | -28 | -1 166 | -655 | |
| Unrealized exchange rate gains (-) and losses (+) | +/- | 105 | 57 | 108 | |
| Other non-cash transactions | +/- | 214 | 0 | -1 181 | |
| Financial income and expense | + | 1 096 | 545 | 845 | |
| Total cash flow before change in working capital | -1 207 | -4 570 | -5 583 | ||
| Change in working capital | |||||
| Increase (-) / decrease (+) in inventories | 38 | 298 | 827 | ||
| Increase (-) / decrease (+) in trade and other receivables | 70 | 4 230 | 4 863 | ||
| Increase (+) / decrease (-) in trade and other payables | -14 | 1 285 | -210 | ||
| Change in provisions | -43 | 0 | 48 | ||
| Change in working capital | 51 | 5 814 | 5 529 | ||
| Adjustment of financial items and taxes to cash-based accounting | |||||
| Interest paid | - | -253 | -182 | -257 | |
| Interest received | + | 0 | 8 | 4 | |
| Other financial items | - | -151 | -135 | -258 | |
| Taxes paid | - | -4 | 15 | 18 | |
| Financial items and taxes | -408 | -294 | -492 | ||
| NET CASH FLOW FROM BUSINESS OPERATIONS | -1 563 | 950 | -547 | ||
| CASH FLOW FROM INVESTING ACTIVITIES | |||||
| Investments in tangible and intangible assets | - | -1 972 | -1 240 | -1 757 | |
| Proceeds on disposal of tangible and intangible assets | + | 70 | 3 677 | 4 465 | |
| Repayment of loan receivables | + | 0 | 0 | 0 | |
| NET CASH FLOW FROM INVESTMENTS | -1 869 | 2 437 | 2 708 | ||
| CASH FLOW FROM FINANCING ACTIVITIES | |||||
| Proceeds from non-current borrowings | + | 2 319 | 0 | 1 559 | |
| Stock options of the convertible bond | + | 432 | 0 | 347 | |
| Proceeds from current borrowings | + | 4 470 | 4 572 | 5 404 | |
| Repayment of current borrowings | - | -4 134 | -7 728 | -9 174 | |
| Dividends paid | - | 0 | 0 | 0 | |
| NET CASH FLOW FROM FINANCING ACTIVITIES | 3 078 | -3 155 | -1 865 | ||
| INCREASE (+) OR DECREASE (-) IN CASH FLOW | -355 | 231 | 296 | ||
| Consolidated statement of changes in equity | ||||||
| (unaudited) | ||||||
| 1 000 EUR | Share capital | Other reserves | Translation difference | Distributable non-restricted equity fund | Retained earnings | Total |
| 31.12.2012 | 3 425 | 4 908 | 677 | 38 783 | -43 091 | 4 703 |
| Stock options of the convertible bond | 432 | 432 | ||||
| Share related payments | - | - | - | - | 480 | 480 |
| Translation difference, comprehensive income | - | - | 82 | - | 82 | |
| Profit/loss for the period | - | - | - | - | -4 048 | -4 048 |
| 30.9.2013 | 3 425 | 4 908 | 760 | 39 215 | -46 659 | 1 649 |
| 1 000 EUR | Share capital | Other reserves | Translation difference | Distributable non-restricted equity fund | Retained earnings | Total |
| 31.12.2011 | 3 425 | 4 908 | 584 | 38 436 | -29 735 | 17 618 |
| Translation difference, comprehensive income | - | - | 59 | - | - | 59 |
| Profit/loss for the period | - | - | - | - | -11 956 | -11 956 |
| 30.9.2012 | 3 425 | 4 908 | 643 | 38 436 | -41 692 | 5 721 |
| Segment information | |||||
| (unaudited) | |||||
| 14 May 2013 Cencorp announced that the company changes its reporting system to comply with the company's Cleantech strategy and as from 1 January 2013 Cencorp reports of three business segments. The segments are Laser and Automation Applications, Life Cycle Management and Clean Energy Solutions (including also the former Special Components segment). The comparison figures for the corresponding period in 2012 concern only the net sales. Other figures that would be compareble and reliable enough are not available. Cencorp's new segment information is based on the management's internal reporting and on the organisation structure. | |||||
| The segment information include only continuing operations. Information regarding discontinued operations is given in attachment "Discontinued operations". | |||||
| 1 000 EUR | 1-9/2013 | 1-9/2012 | 1-12/2012 | ||
| Net sales | |||||
| Laser and Automation Applications | 4 066 | 4 571 | 5 909 | ||
| Life Cycle Management of Laser and Automation Applications | 2 309 | 2 826 | 3 708 | ||
| Clean Energy Solutions | 2 684 | 4 737 | 5 865 | ||
| Eliminations | -115 | -5 | -41 | ||
| Total | 8 944 | 12 129 | 15 441 | ||
| Operating profit | |||||
| Laser and Automation Applications | -1 156 | - | - | ||
| Life Cycle Management of Laser and Automation Applications | 112 | - | - | ||
| Clean Energy Solutions | -1 780 | - | - | ||
| Eliminations | -1 | - | - | ||
| Total | -2 824 | - | - | ||
| EBITDA | |||||
| Laser and Automation Applications | -761 | - | - | ||
| Life Cycle Management of Laser and Automation Applications | 216 | - | - | ||
| Clean Energy Solutions | -834 | - | - | ||
| Eliminations | -6 | - | - | ||
| Total | -1 385 | - | - | ||
| Depreciation | |||||
| Laser and Automation Applications | 381 | - | - | ||
| Life Cycle Management of Laser and Automation Applications | 104 | - | - | ||
| Clean Energy Solutions | 940 | - | - | ||
| Total | 1 426 | - | - | ||
| Impairment | |||||
| Laser and Automation Applications | 14 | - | - | ||
| Life Cycle Management of Laser and Automation Applications | 1 | - | - | ||
| Clean Energy Solutions | 0 | - | - | ||
| Total | 14 | - | - | ||
| Segment information | |||||
| (unaudited) | |||||
| When the comparison figures that would be comparable and reliable enough are not available for the corresponding period in 2012, Cencorp reports the segment information also according the old reporting system with two segments. The segment information include only continuing operations. | |||||
| The Group had two reporting segments till 31 December 2012: Laser and Automation Applications, and Special Components. The Laser and Automation Applications segment comprised Cencorp’s former business and the Special Components segment the business acquired through the Face transaction in 2010. | |||||
| 1 000 EUR | 1-9/2013 | 1-9/2012 | 1-12/2012 | ||
| Net sales | |||||
| Laser and Automation Applications | 6 340 | 7 400 | 9 624 | ||
| Special Components | 2 655 | 4 735 | 5 858 | ||
| Eliminations | -51 | -5 | -41 | ||
| Total | 8 944 | 12 129 | 15 441 | ||
| Operating profit | |||||
| Laser and Automation Applications | -1 333 | -2 143 | -3 221 | ||
| Special Components | -1 497 | -270 | -712 | ||
| Eliminations | 6 | 0 | 1 | ||
| Total | -2 824 | -2 412 | -3 932 | ||
| EBITDA | |||||
| Laser and Automation Applications | -811 | -1 636 | -2 401 | ||
| Special Components | -579 | 851 | 812 | ||
| Eliminations | 6 | 0 | 1 | ||
| Total | -1 385 | -785 | -1 588 | ||
| Profit/loss for the period | |||||
| Laser and Automation Applications | -2 235 | -2 375 | -3 644 | ||
| Special Components | -1 772 | -465 | -1 120 | ||
| Eliminations | 3 | -38 | 14 | ||
| Total | -4 004 | -2 877 | -4 750 | ||
| Assets | |||||
| Laser and Automation Applications | 16 457 | 28 530 | 27 995 | ||
| Special Components | 9 850 | 11 378 | 10 964 | ||
| Assets classified as held for sale | 0 | 1 284 | 79 | ||
| Eliminations | -6 777 | -20 196 | -20 336 | ||
| Total | 19 530 | 20 996 | 18 702 | ||
| Liabilities | |||||
| Laser and Automation Applications | 15 500 | 11 025 | 11 873 | ||
| Special Components | 9 141 | 7 755 | 8 003 | ||
| Liabilities directly associated with assets held for sale | 0 | 2 214 | 40 | ||
| Eliminations | -6 760 | -5 719 | -5 917 | ||
| Total | 17 881 | 15 275 | 14 000 | ||
| Gross investments | |||||
| Laser and Automation Applications | 2 008 | 412 | 849 | ||
| Special Components | 950 | 736 | 989 | ||
| Assets classified as held for sale | 0 | 4 | 4 | ||
| Total | 2 958 | 1 152 | 1 842 | ||
| Depreciation | |||||
| Laser and Automation Applications | 507 | 507 | 675 | ||
| Special Components | 918 | 1 121 | 1 434 | ||
| Total | 1 426 | 1 627 | 2 109 | ||
| Impairment | |||||
| Laser and Automation Applications | 14 | 0 | 145 | ||
| Special Components | 0 | 0 | 90 | ||
| Total | 14 | 0 | 235 | ||
| Discontinued operations | ||||
| (unaudited) | ||||
| 29 May 2012 Cencorp announced that it exits from its unprofitable decoration business and closes down its plant in Guangzhou, China, producing decoration applications. In consequence of the closing down of the Guangzhou plant and the exit from decoration business Cencorp reports the financial figures relating to the Guangzhou plant’s decoration business as discontinued operations from now on. | ||||
| The assets of Savcor Face (Guangzhou) Technologies Co., Ltd, reported as discontinued operation, were written- off at fair value in the second quarter of 2012 and sold in the fourth quarter of 2012. | ||||
| The results and major classes of assets and liabilities of Savcor Face (Guangzhou) Technolgies Co., are as follows: | ||||
| 1 000 EUR | 1-9/2013 | 1-9/2012 | 1-12/2012 | |
| Revenue | 0 | 1 876 | 1 878 | |
| Expenses | -8 | -5 484 | -5 620 | |
| Other opeating income | 0 | 0 | 1 031 | |
| Loss recognised on the remeasurement to fair value | 0 | -5 397 | -5 833 | |
| Operating profit | -8 | -9 005 | -8 544 | |
| Finance costs | -36 | -74 | -62 | |
| Profit/loss before tax from discontinued operation | -44 | -9 079 | -8 606 | |
| Income tax | 0 | 0 | 0 | |
| Profit/loss after tax from discontinued operation | -44 | -9 079 | -8 606 | |
| Assets | ||||
| Property, plant and equipment | 0 | 757 | 0 | |
| Other intangible assets | 0 | 0 | 0 | |
| Inventories | 0 | 184 | 0 | |
| Trade and other non-interest-bearing receivables | 0 | 115 | 39 | |
| Cash and cash equivalents | 0 | 228 | 40 | |
| Assets classified as held for sale | 0 | 1 284 | 79 | |
| Liabilities | ||||
| Trande and other payables | 0 | 2 164 | 40 | |
| Provisions | 0 | 50 | 0 | |
| Liabilities directly associated with assets classified as held for sale | 0 | 2 214 | 40 | |
| Net assets directly associated with disposal group | 0 | -930 | 39 | |
| Savcor Face (Guangzhou) Technolgies Co., Ltd:n net cash flow: | ||||
| 1 000 EUR | 1-9/2013 | 1-9/2012 | 1-12/2012 | |
| Operating | 41 | 204 | 17 | |
| Investing | 0 | -20 | -20 | |
| Financing | 0 | 0 | 0 | |
| Net cash flow | 41 | 184 | -3 | |
| Earnings/share (basic), from discontinued operations | -0,0001 | -0,03 | -0,03 | |
| Earnings/share (diluted) from discontinued operations | -0,0001 | -0,03 | -0,03 | |
| Key figures | |||||
| (unaudited) | |||||
| 1 000 EUR | 7-9/2013 | 7-9/2012 | 1-9/2013 | 1-9/2012 | 1-12/2012 |
| Net sales | 3 067 | 3 045 | 8 944 | 12 129 | 15 441 |
| Operating profit | -1 052 | -1 314 | -2 824 | -2 412 | -3 932 |
| % of net sales | -34,3 | -43,1 | -31,6 | -19,9 | -25,5 |
| EBITDA | -603 | -796 | -1 385 | -785 | -1 588 |
| % of net sales | -19,7 | -26,1 | -15,5 | -6,5 | -10,3 |
| Profit before taxes | -1 672 | -1 610 | -3 989 | -2 905 | -4 776 |
| % of net sales | -54,5 | -52,9 | -44,6 | -23,9 | -30,9 |
| Balance Sheet value | 19 530 | 20 996 | 19 530 | 20 996 | 18 702 |
| Equity ratio, % | 8,5 | 27,3 | 8,5 | 27,3 | 25,2 |
| Net gearing, % | 575,7 | 88,1 | 575,7 | 88,1 | 132,7 |
| Gross investments | 541 | 298 | 2 958 | 1 152 | 1 842 |
| % of net sales | 17,6 | 9,8 | 33,1 | 9,5 | 11,9 |
| Research and development costs | 429 | 306 | 1 371 | 988 | 1 458 |
| % of net sales | 14,0 | 10,0 | 15,3 | 8,1 | 9,4 |
| Order book | 2 017 | 2 168 | 2 017 | 2 168 | 1 438 |
| Personnel on average | 151 | 182 | 156 | 264 | 241 |
| Personnel at the end of the period | 152 | 177 | 152 | 177 | 168 |
| Non-interest-bearing liabilities | 7 919 | 7 426 | 7 919 | 7 426 | 6 850 |
| Interest-bearing liabilities | 9 727 | 5 343 | 9 727 | 5 343 | 6 825 |
| Share key indicators | |||||
| Earnings/share (basic) | -0,005 | -0,01 | -0,012 | -0,03 | -0,04 |
| Earnings/share (diluted) | -0,005 | -0,01 | -0,012 | -0,03 | -0,04 |
| Earnings/share (basic), from continuing operations | -0,005 | -0,005 | -0,012 | -0,008 | -0,01 |
| Earnings/share (diluted) from continuing operations | -0,005 | -0,005 | -0,012 | -0,008 | -0,01 |
| Equity/share | 0,005 | 0,02 | 0,005 | 0,02 | 0,01 |
| P/E ratio | -15,90 | -9,18 | -6,76 | -1,43 | -1,54 |
| Highest price | 0,09 | 0,06 | 0,10 | 0,12 | 0,12 |
| Lowest price | 0,07 | 0,05 | 0,06 | 0,05 | 0,05 |
| Average price | 0,08 | 0,05 | 0,08 | 0,09 | 0,08 |
| Closing price | 0,08 | 0,05 | 0,08 | 0,05 | 0,06 |
| Market capitalisation, at the end of the period, MEUR | 27,4 | 17,1 | 27,4 | 17,1 | 20,5 |
| Calculation of Key Figures | |||||
| EBITDA, %: | Operating profit + depreciation + impairment | ||||
| Net sales | |||||
| Equity ratio, %: | Total equity x 100 | ||||
| Total assets - advances received | |||||
| Net gearing, %: | Interest-bearing liabilities - cash and cash equivalents | ||||
| and marketable securities x 100 | |||||
| Shareholders' equity + minority interest | |||||
| Earnings/share (EPS): | Profit/loss for the period to the owner of the parent company | ||||
| Average number of shares adjusted for share issue | |||||
| at the end of the financial year | |||||
| Equity/share: | Equity attributable to shareholders of the parent company | ||||
| Undiluted number of shares on the balance sheet date | |||||
| P/E ratio: | Price on the balance sheet date | ||||
| Earnings per share | |||||
| Related party transactions | |||||||
| (unaudited) | |||||||
| Cencorp Corporation is part of Savcor Group Oy. The Group has purchased goods and services from companies in which the majority holding and/or power of decision granting control of the company is held by members of the Group's related parties. Sales of goods and services carried out with related parties are based on market prices. | |||||||
| The Group entered into the following transactions with related parties: | |||||||
| 1 000 EUR | 1-9/2013 | 1-9/2012 | 1-12/2012 | ||||
| Sales of goods and services | |||||||
| Savcor companies | 127 | 88 | 120 | ||||
| Purchases of goods and services | |||||||
| Savcor companies | 374 | 413 | 548 | ||||
| Interest income | |||||||
| Savcor companies | 0 | 0 | 1 | ||||
| Interest expenses and other financial expenses | |||||||
| Savcor companies | 250 | 267 | 348 | ||||
| SCI Invest Oy | 45 | 0 | 10 | ||||
| Iikka Savisalo | 1 | 0 | 0 | ||||
| Discontinued operations | |||||||
| Sales of goods and services | |||||||
| Savcor companies | 0 | 22 | 143 | ||||
| Purchases of goods and services | |||||||
| Savcor companies | 0 | 20 | 20 | ||||
| Other non-current liabilities to related parties | 319 | 519 | 519 | ||||
| Convertible subordinated loan from related parties | 2 549 | 1 230 | 2 400 | ||||
| Interest payable to related parties | 838 | 395 | 480 | ||||
| Other current liabilities to related parties | 1 255 | 1 000 | 1 000 | ||||
| Trade payables and other non-interest-bearing liabilities to related parties | 599 | 901 | 549 | ||||
| Trade receivables from related parties | 112 | 99 | 87 | ||||
| SCI Invest Oy is a company under control of Iikka Savisalo, Cencorp's CEO. | |||||||
| 1 000 EUR | 1-9/2013 | 1-9/2012 | 1-12/2012 | ||||
| Wages and remuneration | |||||||
| Salaries of the management and Board | 562 | 617 | 807 | ||||
| Fair values | ||
| (unaudited) | ||
| Carrying amount | Fair value | |
| 1 000 EUR | 30.9.2013 | 30.9.2013 |
| Financial assets | ||
| Available-for-sale investments | 10 | 10 |
| Trade and other receivables | 2 624 | 2 624 |
| Cash and cash equivalents | 237 | 237 |
| The fair value of trade and other receivables is expected to correspond to the carrying amount due to their short maturity. | ||
| Financial liabilities | ||
| R&D loan, non-current | 1 057 | 1 057 |
| Other liabilities, non-current | 345 | 345 |
| Loans from financial institutions, current | 2 636 | 2 636 |
| Other liabilities, current | 1 496 | 1 496 |
| Trade payables and other non-interest-bearing liabilities | 7 579 | 7 579 |
| The fair value of non-current liabilities is expected to correspond to the carrying amount as the loans were withdrawn in late 2012 and in 2013 and recognized to their fair value when recorded. | ||
| Change in intangible and tangible assets | |||
| (unaudited) | |||
| 1 000 EUR | 30.9.2013 | 30.9.2012 | 31.12.2012 |
| Includes tangible assets, consolidated goodwill and other intangible assets | |||
| Carrying amount, beginning of period | 12 634 | 22 609 | 22 609 |
| Depreciation and impairment | -1 425 | -7 557 | -2 109 |
| Additions | 3 204 | 1 152 | 1 838 |
| Disposals | -225 | -2 507 | -2 989 |
| Discontinued operations | 0 | -757 | -6 654 |
| Exchange rate difference | -26 | 76 | -61 |
| Carrying amount, end of period | 14 162 | 13 016 | 12 634 |
| Commitments and contingent liabilities | |||
| (unaudited) | |||
| 1 000 EUR | 30.9.2013 | 30.9.2012 | 31.12.2012 |
| Loans from financial institutions | 1 253 | 1 195 | 1 247 |
| Promissory notes secured by pledge | 12 691 | 12 691 | 12 691 |
| Mortgages on real estate | 0 | 0 | 0 |
| Factoring loan and export credit limit | 1 370 | 1 235 | 1 090 |
| Trade receivables | 1 370 | 841 | 695 |
| Promissory notes secured by pledge | 12 691 | 12 691 | 12 691 |
| Operating leases | |||
| Payable within one year | 22 | 51 | 50 |
| Payable over one year | 2 | 49 | 38 |
| Commitments | |||
| Payable within one year | 945 | 897 | 922 |
| Payable over one year | 878 | 896 | 849 |
| Commitments discontinued operations | |||
| Payable within one year | 0 | 629 | 0 |
| Payable over one year | 0 | 3 348 | 0 |