Elcoteq SE
Interim Report
April 29, 2009, at 9.00 am (EET)
ELCOTEQ SE'S INTERIM REPORT JANUARY - MARCH 2009 (UNAUDITED)
Elcoteq SE's net sales between January and March decreased as
expected and totaled 470.0 million euros (908.7 in January - March
2008). Operating income was -38.3 million euros (-9.5) and -24.7
excluding restructuring expenses. The first-quarter result was
strongly influenced by the economic crisis and the rapid changes in
our customers' markets. Elcoteq has vigorously adjusted its cost
structure with the Restructuring Plan announced in January, but it
will only start to come to full effect from the second quarter
onwards.
- Net sales 470.0 million euros (908.7)
- Operating income -38.3 million euros (-9.5)
- Income before taxes -49.9 million euros (-15.4)
- Earnings per share (EPS) -1.40 euros (-0.35)
- Cash flow after investing activities -50.7 million euros (-1.1)
- Rolling 12-month return on capital employed (ROCE) -11.3% (-10.7%)
- Gearing 3.2 (0.8)
- Equity project negotiations proceeding as planned
- Term sheet signed to renew the syndicated, committed credit
facility
This interim report has been prepared using IFRS recognition and
measuring principles. Tables have been prepared in compliance with
the IAS 34 requirements approved by the EU. The comparative figures
given in the body text of this report are figures for the
corresponding period in the previous year, unless stated otherwise.
Net Sales and Result
Elcoteq recorded net sales of 470.0 million euros (908.7) between
January and March. Operating income totaled -38.3 million euros
(-9.5) and was -24.7 million euros excluding restructuring costs. All
segments posted negative results since they were all affected by the
economic crisis and the rapid changes in our customers' markets.
Sales are typically lower in the first quarter, and it was this time
coupled with customers' particularly full sales channels and the fact
that customers have been consuming their own buffer stocks.
Profitability has been affected by the decline in sales and
restructuring costs arising from adjustments in the cost base. Such
reductions in the cost base will have more visible impact from the
second quarter onwards.
The Group's net financial expenses were 11.5 million euros (6.0).
Income before taxes was -49.9 million euros (-15.4) and net income
totaled -45.6 million euros (-11.6). Earnings per share (EPS) were
-1.40 euros (-0.35). Financial expenses were affected by the high
debt level and currency fluctuations.
The Group's gross capital expenditures on fixed assets between
January and March were 2.0 million euros (27.7), or 0.4% of net
sales. Depreciation amounted to 18.9 million euros (17.1).
Investments have been reduced to a minimum to increase existing asset
capacity utilization ratios.
Financing and Cash Flow
Cash flow after investing activities was -50.7 million euros (-1.1).
Cash flow received by the Group from sold accounts receivable was
52.3 million euros at the end of March (136.5). The negative cash
flow was a result of high volatility in customer demand in the first
quarter. Demand fluctuations caused challenges in maintaining the
working capital, especially inventories, at an optimal level. Cash
flow is expected to improve in the second quarter because the
measures taken to reduce the component purchase orders implemented in
the first-quarter will gradually release cash tied up in working
capital.
At the end of March 2009, Elcoteq had cash and unused but immediately
available credit lines totaling 118.9 million euros (368.3 million
euros in the first quarter of 2008 and 165.9 million euros at the end
of 2008). These credit limits included a 230 million euro syndicated,
committed credit facility, of which 20 million euros were unused. The
company has signed a term sheet with the bank syndicate to renew the
syndicated, committed credit facility and the finalization of the
loan master agreement is currently under progress.
At the end of March, the Group's interest-bearing net debt amounted
to 286.4 million euros (143.6). The solvency ratio was 12.1% (19.2%
at the end of March 2008) and gearing was 3.2 (0.8). Rolling 12-month
return on capital employed (ROCE) was -11.3% (-10.7%).
Business Areas
As of the beginning of 2008, Elcoteq's segment reporting covers three
Business Areas: Personal Communications, Home Communications and
Communications Networks. In the first quarter of 2009, Personal
Communications contributed 48% (76%), Home Communications 25% (9%)
and Communications Networks 27% (15%) of the Group's net sales.
Elcoteq's largest customers (in alphabetical order) are EADS,
Ericsson, Funai, Huawei, Nokia Devices, Nokia Siemens Networks,
Philips, Research in Motion (RIM), Sony Ericsson and Thomson.
Net sales of the Personal Communications Business Area were 227.7
million euros (688.4). The segment's operating income was -10.2
million euros (5.4) and -9.4 million euros excluding restructuring
expenses. Personal Communications net sales have decreased mainly due
to the manufacturing re-allocation and in-sourcing decisions made by
Nokia Devices.
Net sales of the Home Communications Business Area increased compared
to the first quarter a year earlier, standing at 116.9 million euros
(81.4). The segment's operating income was -9.9 million euros (-0.5)
and -3.5 million euros excluding restructuring expenses. The increase
in net sales came mainly from the acquisition of the flat TV
manufacturing plant in Juarez, Mexico. The result was strongly
affected by the one-time restructuring costs of 6.4 million euros.
Net sales of the Communications Networks business area decreased
slightly compared to last year's first quarter, standing at 125.3
million euros (139.0). The segment's operating income was -10.3
million euros
(-4.2) and -4.5 million euros excluding restructuring expenses.
Elcoteq's first-quarter net sales were derived from the geographical
areas as follows: Europe 40% (51%), Asia-Pacific 15% (24%) and
Americas 46% (25%).
Personnel
At the end of March 2009, the Group employed 14,569 (23,996) people.
The geographical distribution of the workforce was as follows: Europe
6,597 (10,838), Asia-Pacific 3,231 (7,127) and Americas 4,741
(6,031). The average number of employees on Elcoteq's direct payroll
between January and March was 14,446 (17,894).
Progress in the Restructuring Plan
The Restructuring Plan announced on January 15 is proceeding as
planned in terms of plant closures and cost cutting. As a result of
the rapid decrease in net sales, personnel reductions were carried
out on a somewhat wider scale than initially planned. This has also
affected the one-time restructuring costs, which were higher than
anticipated. The total restructuring costs are expected to be around
30 million euros, of which 13.5 million euros were booked in December
2008 and the rest by the third quarter of 2009. Earlier, the Company
estimated that the total restructuring costs would be 24 million
euros, of which 13.5 million euros were booked in 2008. The cost
structure has been adjusted to the current manufacturing volumes, but
also allows for rapid growth. The Company can leverage the new,
reduced cost base when the manufacturing volumes pick up again.
Equity Project
In January, the Company commenced a project to strengthen its balance
sheet. The Equity Project is designed to provide the financial means
for future growth with both existing and new customers. The Company
has advanced to a phase where discussions are now carried out with a
limited number of equity investors who have indicated an interest to
enter into final negotiations and confirmatory due diligence. The
selection of the equity partner and final negotiations are scheduled
to be completed during the first half of 2009.
Shares and Shareholders
At the end of March 2009, the company had 127,795,919 shares divided
into 22,025,919 series A shares and 105,770,000 series K Founders'
shares. All the series K Founders' shares are held by the company's
three principal owners.
Elcoteq had 9,416 shareholders on March 31, 2009. There were a total
of 6,666,122 foreign and nominee registered shares, representing
5.22% of the votes.
Decisions of the Annual General Meeting
Elcoteq SE's Annual General Meeting took place on March 23, 2009 in
Luxembourg. The Meeting confirmed the consolidated and parent
company's income statements and balance sheets for the financial year
2008 and discharged the members of the Board of Directors and the
statutory auditor from liability for the financial year. The Meeting
approved the Board's proposal that no dividend be distributed for the
financial year January 1 - December 31, 2008.
The Meeting re-elected all the current members to the Board of
Directors: President Martti Ahtisaari; Mr. Heikki Horstia, Vice
President, Treasurer, Wärtsilä Corporation; Mr. Eero Kasanen, Rector
of the Helsinki School of Economics; Mr. François Pauly, General
Manager of Sal. Oppenheim Jr. & Cie S.C.A; Mr. Antti Piippo,
principal owner and founder-shareholder of Elcoteq SE; Mr. Henry
Sjöman, founder-shareholder of Elcoteq SE; Mr. Juha Toivola, Master
of Arts; and Mr. Jorma Vanhanen, founder-shareholder of Elcoteq SE.
The term of office of each Board member extends until the end of the
following Annual General Meeting. Mr. Ahtisaari, Mr. Horstia, Mr.
Kasanen, Mr. Pauly and Mr. Toivola are independent Board members, and
represent more than half of the Board's composition.
Convening after the Annual General Meeting in Luxembourg, the Board
of Directors elected Mr. Antti Piippo as its Chairman and Mr. Juha
Toivola as the Deputy Chairman. Mr. Piippo was elected Chairman of
the Nomination Committee and the Working Committee and Mr. Henry
Sjöman, Mr. Juha Toivola and Mr. Jorma Vanhanen as members of these
committees. Mr. Toivola was elected Chairman of the Compensation
Committee and the Audit Committee and President Martti Ahtisaari, Mr.
Heikki Horstia, Mr. Eero Kasanen and Mr. Pauly as members of these
committees.
The Meeting approved the proposal of the Audit Committee of the Board
of Directors to appoint the firm of authorized public accountants
KPMG Audit S.à.r.l under the supervision of Mr. Philippe Meyer as the
Company's auditors for the financial year ending on December 31,
2009.
New Incentive Plan - Profitability Turnaround
On February 10, the Board of Directors approved a new profitability
turnaround plan for the company's key personnel in the form of a
share subscription plan.
The potential reward from the plan is based on reaching the targets
set by the Board of Directors for the Group's consolidated income
before taxes for the first and second half of year 2009. Based on the
achieved targets the company would issue a maximum of 1,500,000 new
series A shares of which 50% would be issued during June 2010 and the
remaining 50% during January 2011. The new series A shares, if any,
will be issued according to and under the authorization granted to
the Board of Directors in the company's Articles of Association.
Short-Term Risks and Uncertainty Factors
The Company's key short-term challenges are to conclude the planned
equity increase, improve operational profitability and free up cash.
In addition, the Company must continue to maintain in the changing
market circumstances the right service offering, optimized cost level
and ability to react rapidly to demand changes.
Prospects
Under the current market conditions it is extremely difficult to make
exact forecasts. The second-quarter net sales are expected to be on
par with the first-quarter of 2009. Operating income is expected to
improve as the restructuring actions start having an impact on the
cost structure. Cash flow is expected to be positive due to the
actions taken in the second quarter to reduce working capital,
including the inventories.
Successful completion of the equity increase project is expected to
speed up the closing of several new programs, which are under
negotiations both with existing and new customers. Such equity
increase is also expected to clearly stabilize the financing
structure of the Company.
The Company's priority areas for 2009 are the strengthening of the
equity base, further balancing of the customer base, clear
improvement in bottom-line profitability through the ongoing
restructuring actions and strong cash generation through improved
profitability, limited capital expenditure and further working
capital reduction.
Elcoteq plans its material purchases and capacity based on the
forecasts received from customers and market analysis. Such forecasts
may fluctuate during the forecast period, causing uncertainty in the
Company's own forecasts.
Luxembourg
April 28, 2009
Board of Directors
Further information:
Jouni Hartikainen, President and CEO, +358 10 413 11
Mikko Puolakka, CFO, tel. +358 10 413 1287
Minna Aila, Director, Investor Relations and Corporate
Responsibility, tel. +358 10 413 1908
Press Conference and Webcast
Elcoteq will arrange a combined press conference, conference call and
audio webcast for media and analysts on Wednesday, April 29, at 2.30
pm (EET). The event will be held in English and it will be hosted at
the Scandic Hotel Simonkenttä, Bulsa-Freda room (Simonkatu 9,
Helsinki, Finland).
To participate by phone, please dial in 5 - 10 minutes before the
beginning of the event:
+44 (0)20 7162 0025 (Europe) or +1 334 323 6201 (USA). The password
is Elcoteq. The press conference can also be followed later as a
recording via Elcoteq's website at www.elcoteq.com.
Elcoteq will publish its second-quarter interim report at 9.00 am
(EET) on Wednesday, July 22, 2009.
Enclosures:
1 Income statement
2 Balance sheet
3 Cash flow statement
4 Statement of changes in shareholders' equity
5 Formulas for the calculation of key figures
6 Key figures
7 Business areas
8 Restructuring expenses
9 Assets and liabilities classified as held for sale
10 Assets pledged and contingent liabilities
11 Quarterly figures
The Group adopted the following standards on January 1, 2009:
- IFRS 8 Operating Segments. The adoption of the standard does not
have an impact on the Interim Report.
- Revised IFRS 23 Borrowing Costs. The adaptation of the standard
causes a change in the accounting principles used in the consolidated
financial statements. The adoption of the standard does not have a
material impact on the Group currently.
- Revised IAS1 Presentation of Financial Statements. The change of
the standard has impact on the presentation of Income Statement and
Statement of Changes in Shareholders' Equity.
The following changes in the accounting principles do not have an
impact on the consolidated financial statements:
- IFRS 2 Share-based Payments
- IFRS 1 First-Time adoption and IAS 27 Consolidated and Separate
Financial Statements
- IFRIC 15 Agreements for the Construction of Real
Estate
APPENDIX 1
1-12/
INCOME STATEMENT, MEUR Q1/2009 Q1/2008 Change, % 2008
NET SALES 470.0 908.7 -48.3 3, 443.2
Change in work in progress
and finished goods -21.9 2.9 -35.5
Other operating income 2.3 1.6 42.0 11.2
Operating expenses -456.1 -905.6 -49.6 -3,346.8
Restructuring expenses -13.6 0.0 -13.5
Depreciation and impairment -18.9 -17.1 10.8 -78.9
OPERATING LOSS -38.3 -9.5 -20.4
% of net sales -8.2 -1.0 -0.6
Financial income and expenses -11.5 -6.0 93.2 -32.4
Share of profits and losses of
associates 0.0 0.0 -0.1
LOSS BEFORE TAXES -49.9 -15.4 223.3 -52.9
Income taxes 3.7 4.2 -11.1
NET LOSS -46.1 -11.3 309.7 -64.0
Other comprehensive income
Cash flow hedges -1.1 -2.4 -2.5
Net gain/loss on hedges of net
investments in foreign operations 1.5 2.2 -6.4
Foreign currency translation
differences for foreign operations 0.1 0.7 11.2
Income tax relating to components
of other comprehensive income 0.3 0.0 0.4
Other comprehensive income for the
period, net of tax 0.8 0.5 2.7
TOTAL COMPREHENSIVE LOSS FOR THE
PERIOD -45.3 -10.8 -61.3
LOSS FOR THE PERIOD ATTRIBUTABLE
TO:
Equity holders of the parent
company * -45.6 -11.6 -65.9
Minority interests -0.5 0.3 1.9
-46.1 -11.3 -64.0
TOTAL COMPREHENSIVE LOSS
ATTRIBUTABLE TO:
Equity holders of the parent
company * -45.3 -10.8 -64.8
Minority interests 0.0 0.0 3.5
-45.3 -10.8 -61.3
Earnings per share (EPS), A
shares EUR -1.40 -0.35 -2.02
Earnings per share (EPS), K
founders' shares EUR -0.14 -0.04 -0.20
Income tax is the amount corresponding to the actual effective rate
based on year-to-date actual tax
calculation.
* The Group's reported net income for the
period.
APPENDIX 2
Dec.
March 31,
BALANCE SHEET, MEUR 31, 2009 2008 Change, %
ASSETS
Non-current assets
Intangible assets 27.4 27.6 -1.0
Tangible assets 149.7 167.8 -10.8
Investments 2.3 2.2 3.2
Long-term receivables 53.0 46.4 14.4
Non-current assets, total 232.4 244.0 -4.8
Current assets
Inventories 174.2 256.2 -32.0
Current receivables 221.9 336.3 -34.0
Cash and equivalents 98.0 95.1 3.1
Current assets, total 494.1 687.5 -28.1
Assets classified as held for sale 20.7 23.9 -13.6
ASSETS, TOTAL 747.1 955.4 -21.8
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent company
Share capital* 13.0 13.0 0.0
Other shareholders'
equity 64.5 109.4 -41.1
Equity attributable to equity holders of the
parent company, total 77.5 122.5 -36.7
Minority interests 12.8 12.7 0.2
Total equity 90.3 135.2 -33.2
Long-term liabilities
Long-term loans 158.9 159.3 -0.3
Other long-term debt 6.7 5.6 19.5
Long-term liabilities, total 165.6 165.0 0.4
Current liabilities
Current loans 225.4 173.9 29.6
Other current
liabilities 257.4 473.9 -45.7
Provisions 8.4 7.5 12.1
Current liabilities, total 491.2 655.3 -25.0
Liabilities classified as held for sale - - -
SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 747.1 955.4 -21.8
* Share capital includes both A-shares listed in Helsinki Stock
Exchange and K-founders' shares.
APPENDIX 3
CONSOLIDATED CASH FLOW
STATEMENT, MEUR 1-3/2009 1-3/2008 Change, % 1-12/2008
Cash flow before change in
working capital -7.1 1.3 0.0 71.9
Change in working capital * -38.8 24.7 -60.2
Financial items and taxes -5.8 -7.5 -22.7 -33.7
Cash flow from operating
activities -51.7 18.4 -22.0
Purchases of non-current
assets -2.1 -20.0 -89.5 -85.8
Disposals of non-current
assets 3.1 0.5 520.0 8,2
Cash flow before financing
activities -50.7 -1.1 4,510.9 -99.7
Change in current debt 51.4 2.4 2,041.7 119.7
Repayment of long-term debt - - -20.4
Dividends paid - - -2.0
Cash flow from financing
activities 51.4 2.4 2,041.7 97.3
Change in cash and
equivalents 0.7 1.3 -46.2 -2.5
Cash and equivalents on
January 1 95.1 92.7 2.6 92.7
Cash and equivalents classified
as held for sale - -0.2 -
Effect of exchange rate changes
on cash held 2.2 -1.9 4.9
Cash and equivalents at the end
of the period 98.0 91.9 6.6 95.1
* The change in working capital includes the change in sold accounts
receivable. The impact of this change is to weaken the cash flow by
48.8 million euros during the reporting period 1-3/2009 and by 90.0
million euros during the reporting period 1-3/2008
APPENDIX 4
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY,
MEUR
Attributable to equity holders of the parent
Addi- Mino
tional Re- rity
paid- Hed- Trans- tained inte- Total Share in Other ging lation Re- ear- rests equity
serve
ca- ca- reser- reser- diffe- for nings
own
pital pital ves ve rences shares Total
BALANCE
AT JAN.
1, 2009 13,0 225,0 8,4 -3,1 3,2 -0,1 -124,0 122,5 12,7 135,21
Other comprehensive
income -0,8 1,0 -45,6 -45,4 0,0 -45,3
Share-based payments 0,4 0,4 0,4
BALANCE
AT
MARCH
31,
2009 13,0 225,0 8,4 -3,9 4,3 -0,1 -169,1 77,5 12,8 90,3
BALANCE
AT JAN.
1, 2008 13,0 225,0 8,4 -1,0 0,0 -0,1 -58,7 186,6 11,3 197,9
Other comprehensive
income -2,4 3,2 -11,6 -10,7 0,0 -10,7
BALANCE
AT
MARCH
31,
2008 13,0 225,0 8,4 -3,4 3,2 -0,1 -70,3 175,9 11,3 187,2
APPENDIX 5
FORMULAS FOR THE CALCULATION OF KEY FIGURES
Return on equity (ROE) =
Net income x 100
----------------------------------------------------------------
Total equity, average of opening and closing balances
Return on investments (ROI/ROCE) =
(Income before taxes + interest and other financial expenses +
income from discontinued operations before taxes and
financial expenses) x 100
--------------------------------------------------------------------------------------
Total assets - non-interest bearing liabilities, average of opening
and closing balances
Return on investment (ROI/ROCE) for trailing 12 months =
(Income before taxes + interest and other financial expenses +
income from discontinued operations before taxes and
financial expenses) x 100
------------------------------------------------------------------------------------
Total assets - non interest-bearing liabilities, average of opening
and closing balances
Current ratio =
Current assets + assets classified as held for sale
--------------------------------------------------------------
Current liabilities + liabilities classified as held for sale
Solvency =
Total equity x 100
--------------------------------------------
Total assets - advance payments received
Gearing =
Interest-bearing liabilities - cash and equivalents
-------------------------------------------------------------------
Total equity
Equity per share =
Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
Adjusted average number of A shares outstanding end of the
period + (adjusted average number of K founders' shares
outstanding end of the period/10)
Earnings per share, A shares (EPS) =
Net income attributable to equity holders of the parent, A shares
-------------------------------------------------------------------------------------
Adjusted average number of A shares outstanding during the period
Earnings per shares, K founders' shares (EPS) =
Net income attributable to equity holders of the parent,
K founders' shares
--------------------------------------------------------------------------
Adjusted average number of K founders' shares outstanding
during the period
APPENDIX 6
1-3/ 1-3/ Change, 1-12/
KEY FIGURES 2009 2008 % 2008
Personnel on average during the period 14,446 17,894 -19.3 17,401
Gross capital expenditures, MEUR 2.0 27.7 -92.8 71.4
Return on equity (ROE), % -40.9 -5.9 -38.4
Return on investment (ROI/ROCE), % -9.4 -1.8 -3.1
From 12 preceding months:
Return on equity (ROE), % -71.3 -32.5 -38.4
Return on investment (ROI/ROCE), % -11.3 -10.7 -3.1
Earnings per share (EPS), A-shares, EUR -1.40 -0.35 299.7 -2.02
Earnings per share (EPS), K-founders'
shares, EUR -0.14 -0.04 249.7 -0.20
Current ratio 1.0 1.1 1.1
Solvency, % 12.1 19.2 14.2
Gearing 3.2 0.8 1.8
Shareholders' equity per share,
A-shares, EUR 2.38 5.39 3.76
Shareholders' equity per share,
K-founders' shares, EUR 0.24 0.54 0.38
Interest-bearing liabilities, MEUR 384.5 235.4 63.3 333.6
Interest-bearing net debt, MEUR 286.4 143.6 99.4 238.5
Non-interest-bearing liabilities, MEUR 272.4 553.8 -50.8 486.7
APPENDIX 7
From 2009, Elcoteq has applied IFRS 8 Operating Segments in its
segment reporting. The transfer to IFRS 8 has not changed the
previously reported information. The presented segment reporting is
based on the figures provided to the company's management.
Elcoteq has three business areas: Personal Communications, Home
Communications and Communications Networks. Each of the business
areas attend to their own customer accounts and develop their service
offering in their own area.
The main product group for Personal Communications business area is
mobile phones, their parts, modules and accessories. The company's
Home Communications products include set-top boxes, flat panel
televisions, and other home communications devices. Communications
Networks products include wireless infrastructure equipment, wireline
infrastructure components as well as enterprise network products.
1-3/ 1-3/ 1-12/
BUSINESS AREAS, MEUR 2009 2008 2008
Net Sales
Personal Communications 227.7 688.4 2,222.2
Home Communications 116.9 81.4 517.3
Communications Networks 125.3 139.0 703.7
Total 470.0 908.7 3,443.2
Segment's operating income
Personal Communications -10.2 5.4 19.6
Home Communications -9.9 -0.5 -4.6
Communications Networks -10.3 -4.2 1.6
Group's non-allocated expenses/income
General & Administrative
expenses -7.2 -10.1 -37.1
Other expenses -0.7 - 0.2
Total -38.3 -9.5 -20.4
Segments' operating income for the first quarter 2009 includes
following restructuring expenses: Personal Communications 0.8, Home
Communications 6.4 and Communications Networks 5.8. Group's
non-allocated expenses/income include restructuring costs of
0.6.
APPENDIX 8
RESTRUCTURING EXPENSES
During the first quarter of 2009, Elcoteq launched a restructuring
plan that applies to whole Group still some part of the costs
relating to the plan were recognized already in 2008. The plan
targets to prepare the company for the exceptionally uncertain market
situation and general economic development. This plan is the next
step in the company's drive to increase profitability,
cost-efficiency and operational excellence. The plan contains several
elements. The first measure is to close the plants in Arad (Romania),
Richardson (USA) and St. Petersburg (Russia) as well as to
consolidate the plant in Shenzhen (China) to the plant in Beijing.
The second measure consists of the processes of reducing personnel at
several plants globally. In addition the company will reduce other
operative costs.
The Group's restructuring expenses during the first quarter of 2009,
13.645 thousand euros, comprise the following items:
EUR 1, 000 2009
Personnel expenses 6,706
Impairments 3,494
Production materials and services 971
Other operating expenses 2,473
Restructuring expenses, total 13,645
Impairments of non-current assets:
EUR 1, 000 2 009
Intangible rights -
Goodwill -
Buildings 1,231
Machinery and equipment 2,263
ADP software -
Other financial assets -
Impairments, total 3,494
Impairments of buildings as well as machinery and equipment are
primarily due to plant closures.
APPENDIX 9
ASSETS AND LIABILITIES CLASSIFIED AS
HELD FOR SALE
Assets classified as held for sale relate to
real estates on sale.
The company did not have liabilities
classified as held for sale
at the end of the
reporting period.
Assets classified as held
for sale:
March
MEUR 31, 2009
Non-current assets 20,7
Current assets -
Total 20,7
APPENDIX 10
March March Dec.
ASSETS PLEDGED AND CONTINGENT 31, 31, 31,
LIABILITIES, MEUR 2009 2008 Change,% 2008
PLEDGED SALES RECEIVABLE - - 26.9
PLEDGED LOAN RECEIVABLES 0.8 - 0.8
ON BEHALF OF OTHERS
Guarantees 1.0 1.0 1.0
LEASING COMMITMENTS
Operating leases, production
machinery (excl. VAT) 6.8 21.2 -68.0 9.0
Rental commitments.
real-estate
(excl. VAT) 13.2 15.1 -12.4 15.4
DERIVATIVE CONTRACTS
Currency forward contracts,
transaction risk, hedge
accounting not applied
Nominal value 98.7 183.8 -46.3 118.3
Fair value -1.5 -4.5 0.0 -0.2
Currency forward contracts,
transaction risk, hedge
accounting applied
Nominal value 57.0 193.0 -70.5 69.4
Fair value -4.6 -3.4 35.8 -3.5
Currency option contracts,
transaction risk, hedge
accounting applied, bought
options
Nominal value - - 17.0
Fair value - - 0.3
Currency option contracts,
transaction risk, hedge
accounting not applied,
bought options
Nominal value 11.8 - -
Fair value 0.1 - -
Currency forward contracts,
translation risk
Nominal value 21.5 48.4 -55.5 20.2
Fair value -0.5 1.6 -0.8
Currency forward contracts,
financial risk
Nominal value 177.0 150.6 0.0 172.3
Fair value 1.6 -0.1 -3.1
Interest rate and foreign
exchange swap contracts
Nominal value 1.5 4.0 -62.5 1.5
Fair value 0.2 0.3 0.2
The derivative contracts have been valued using the market prices and
the exchange reference rates of the European Central Bank on the
balance sheet date. The figures also include closed positions.
APPENDIX 11
QUARTERLY FIGURES
Q1/ Q4/ Q3/ Q2/ Q1/
INCOME STATEMENT, MEUR 2009 2008 2008 2008 2008
NET SALES 470.0 889.1 740.5 904.8 908.7
Change in work in progress
and finished goods -21.9 -23.9 -4.4 -10.1 2.9
Other operating income 2.3 2.2 4.4 3.1 1.6
Operating expenses -456.1 -842.6 -719.7 -878.9 -905.6
Restructuring expenses -13.6 -13.5 - - -
Depreciation and impairments -18.9 -23.2 -20.5 -18.2 -17.1
OPERATING INCOME -38.3 -11.8 0.3 0.6 -9.5
% of net sales -8.2 -1.3 0.0 0.1 -1.0
Financial income and expenses -11.5 -13.3 -7.0 -6.1 -6.0
Share of profits and losses of
associates 0.0 - -0.1 - -
INCOME BEFORE TAXES -49.9 -25.2 -6.8 -5.5 -15.4
Income taxes 3.7 -4.0 -4.0 -7.3 4.2
NET INCOME
FOR THE
PERIOD -46.1 -29.2 -10.7 -12.8 -11.3
Q1/ Q4/ Q3/ Q2/ Q1/
BALANCE SHEET, MEUR 2009 2008 2008 2008 2008
ASSETS
Non-current assets
Intangible assets 27.4 27.6 28.4 28.5 29.5
Tangible assets 149.7 167.8 190.0 184.0 182.0
Investments 2.3 2.2 2.2 2.1 2.1
Long-term receivables 53.0 46.4 49.2 48.5 47.3
Non-current assets, total 232.4 244.0 269.8 263.2 260.9
Current assets
Inventories 174.2 256.2 358.2 322.5 321.7
Current
receivables 221.9 336.3 326.4 320.0 271.7
Cash and equivalents 98.0 95.1 59.5 50.5 91.9
Current assets,
total 494.1 687.5 744.0 692.9 685.3
Assets classified as held for
sale 20.7 23.9 28.7 30.5 30.2
ASSETS, TOTAL 747.1 955.4 1,042.6 986.6 976.4
SHAREHOLDERS' EQUITY AND
LIABILITIES
Equity attributable to equity
holders of the parent company
Share capital 13.0 13.0 13.0 13.0 13.0
Other shareholders'
equity 64.5 109.4 139.7 152.4 162.8
Equity attributable to equity
holders
of the parent company, total 77.5 122.5 152.8 165.4 175.9
Minority interests 12.8 12.7 13.4 12.5 11.3
Total equity 90.3 135.2 166.2 177.9 187.2
Long-term
liabilities
Long-term loans 158.9 159.3 159.4 159.3 159.4
Other long-term
debt 6.7 5.6 5.5 5.2 5.0
Long-term liabilities, total 165.6 165.0 164.9 164.5 164.4Current
liabilities
Current loans 225.4 173.9 187.2 111.2 75.7
Other current
liabilities 257.4 473.9 519.9 526.8 544.7
Provisions 8.4 7.5 4.4 4.8 3.7
Current liabilities, total 491.2 655.3 711.5 642.8 624.1
Liabilities classified as held
for sale - - - 1.4 0.7
SHAREHOLDERS' EQUITY
AND LIABILITIES, TOTAL 747.1 955.4 1,042.6 986.6 976.4
Personnel on average during the
period 14,446 17,050 17,304 17,543 17,894
Gross capital expenditures, MEUR 2.0 9.9 17.2 16.6 27.7
ROI/ROCE from 12 preceding
months, % -11.3 -3.1 -5.6 -6.2 -10.7
Earnings per share (EPS),
A-shares, EUR -1.40 -0.89 -0.35 -0.42 -0.35
Solvency, % 12.1 14.2 15.9 18.0 19.2
CONSOLIDATED CASH FLOW STATEMENT, Q1/ Q4/ Q3/ Q2/ Q1/
MEUR 2009 2008 2008 2008 2008
Cash flow before change in
working capital -7.1 21.5 32.8 16.2 1.3
Change in working capital -38.8 46.6 -65.2 -66.3 24.7
Financial items and taxes -5.8 -13.0 -7.6 -5.6 -7.5
Cash flow from operating
activities -51.7 55.2 -39.9 -55.8 18.4
Purchases of non-current assets -2.1 -4.4 -12.8 -24.6 -20.0
Acquisitions - -8.4 -15.5 - -
Disposals of non-current
assets 3.1 4.1 1.5 1.8 0.5
Cash flow before financing
activities -50.7 46.6 -66.7 -78.5 -1.1
Change in current debt 51.4 8.9 72.2 36.3 2.4
Repayment of long-term debt 0.0 -20.2 - -0.2 -
Dividends paid 0.0 -1.0 -1.0 - -
Cash flow from financing
activities 51.4 -12.3 71.1 36.1 2.4
Change in cash and
equivalents 0.7 34.2 4.4 -42.4 1.3
Cash and equivalents at the
beginning of the period 95.1 59.5 50.5 91.9 92.7
Cash and cash equivalents
classified as held for sale - - - 0.2 -0.2
Effect of exchange rate changes
on cash held 2.2 1.4 4.6 0.9 -1.9
Cash and equivalents at the end
of period 98.0 95.1 59.5 50.5 91.9
Q1/ Q4/ Q3/ Q2/ Q1/
BUSINESS AREAS, MEUR 2009 2008 2008 2008 2008
Net sales
Personal
Communications 227.7 465.2 437.6 631.0 688.4
Home Communications 116.9 218.8 126.6 90.5 81.4
Communications
Networks 125.3 205.2 176.3 183.3 139.0
Total 470.0 889.1 740.5 904.8 908.7
Segment's operating income
Personal
Communications -10.2 6.7 1.9 5.6 5.4
Home Communications -9.9 -4.1 -0.9 0.9 -0.5
Communications
Networks -10.3 -5.1 7.6 3.3 -4.2
Group's non-allocated
expenses/income
General &
Administrative
expenses -7.2 -9.5 -8.3 -9.2 -10.1
Other expenses -0.7 0.2 -0.1 - -
Total -38.3 -11.8 0.3 0.6 -9.5
Restructuring expenses recognized in
segment's operating income
Personal
Communications -0.8 -6.0 - - -
Home Communications -6.4 -2.1 - - -
Communications
Networks -5.8 -5.4 - - -
Group's non-allocated
expenses/income -0.6 - - - -
Total -13.6 -13.5 - - -
ELCOTEQ SE'S INTERIM REPORT JANUARY - MARCH 2009 (UNAUDITED)
| Quelle: Elcoteq
Anhänge
