Elcoteq SE
Financial Statements Bulletin
March 29, 2011, at 1:20 pm (EET)
The operating result improved significantly to -18.1 million euros (-76.5),
mainly due to improved sales margin levels and substantially lower cost
structure. Operating result excluding restructuring expenses was -7.1 million
euros (-39.5). Cash flow after investing activities was positive at 39.3 million
euros (52.9). Interest-bearing net debt decreased materially and was 12.6
million euros (187.5). Elcoteq SE's net sales in 2010 declined about 29% on the
previous year and amounted to 1069.9 million euros (1,503.2 million euros in
2009).
Net sales increased in the fourth quarter of 2010 by about 6% on the previous
quarter and amounted to 266.3 million euros (250.7 million euros in the third
quarter of 2010). Operating profit for the fourth quarter totaled 4.2 million
euros (-2.5 in the third quarter of 2010) and excluding restructuring expenses
amounted to 5.4 million euros (1.3 in the third quarter of 2010).
Financial Year 2010
- Net sales were 1,069.9 million euros (1,503.2)
- Operating loss was -18.1 million euros (-76.5) and -7.1 million euros (-39.5)
excluding restructuring expenses
- Profit before taxes was 43.7 million euros (-117.1)
- Earnings per share (EPS) were 0.45 euros (- 3.22)
- Cash flow after investing activities was 39.3 million euros (52.9)
- Rolling 12-month return on capital employed (ROCE) was 30.4 % (-18.9%)
- Interest-bearing net debt amounted to 12.6 million euros (187.5), and gearing
was 0.1 (5.8)
- The Board of Directors proposes that no dividend will be paid for 2010
October-December 2010
- Net sales were 266.3 million euros (265.5 million euros in the fourth quarter
of 2009)
- Operating income was 4.2 million euros (-23.4). Operating income includes
restructuring costs amounting to 1.2 million euros (21.3), excluding which the
operating income was 5.4 million euros (-2.1)
- Loss before taxes was -0.8 million euros (-36.4)
- Earnings per share (EPS) were 0.01 euros (-0.96)
- Cash flow after investing activities was 9.4 million euros (-11.3)
Major Events After the End of the Financial Year
On March 24, 2011 the Company was informed that the Board of Directors of a
Hungarian Bank has made a positive decision to grant via their subsidiary bank a
5 year export financing revolving credit facility to the Hungarian subsidiary of
the Company. The formal decision will be taken and disclosed on or soon after
March 30, 2011. The amount of the credit facility is 100 million euros and its
utilization dependent on the export volumes of the company's subsidiary in
Hungary.
Elcoteq SE's consolidated financial statements for 2010 have been prepared using
IFRS recognition and measurement principles. The comparative figures given in
the body text of this report are the figures for the corresponding period of the
previous year, unless stated otherwise.
Market Review
According to the industry research company New Venture Research (NVR), the
global electronics assembly market declined to slightly over 800 billion US
dollars in 2009 but grew again in 2010 to more than 900 billion US dollars. In
2010 approximately 30% of the electronics assembly value was outsourced to
electronic manufacturing service (EMS) providers and original design
manufacturers (ODMs). Also, the AMS spending development is affected by overall
electronics market value. According to the Company's own estimate, based on
selected industry analyst reports on the total electronics market, overall AMS
spending covering various services for original electronic manufacturers (OEMs)
was sized at close to USD 200 billion in 2010. The estimated market size covers
AMS spending through OEMs, either indirectly or directly. Other AMS spending,
such as out-of-warranty, extended-warranty or end-of-life services, which are
not managed by the OEMs, increase the size of the addressable market. The AMS
market remains relatively immature, with the majority of AMS activities still
conducted either in-house or by small local repair shops, thus bringing several
growth opportunities for outsourcing.
As a part of the re-financing preparations a very comprehensive analysis of
Elcoteq's new strategy and business plan, competences, reputation and market
positioning was conducted during June-October, 2010, by an independent and
reputable London based management consultancy company. The analysis was relying
on company data and management interviews backed up by market studies, reviews
of competition, factory visits and numerous interviews of existing, former and
potential customers as well as discussions with other industry related sources.
The overall results were very positive and encouraging and clearly demonstrated
that the company's competences and strategic direction are well aligned and the
customers' only major concern with Elcoteq has been and still is the uncertainty
related to the long-term financing of the business.
Financial Year 2010
Elcoteq's 2010 net sales declined on the previous year and amounted to 1,069.9
million euros (1,503.2). Operating loss was -18.1 million euros (-76.5),
representing -1.7% (-5.1%) of net sales. Profit before taxes was 43.7 million
euros (-117.1) and net profit was 15.8 million euros (-109.0). Earnings per
share (EPS) amounted to 0.45 euros (-3.22). Earnings include 11.1 million euros
(37.0) restructuring expenses.
Net sales grew in the AMS Business Segment and declined in the EMS Business
Segment compared to the previous year. The decline in EMS net sales was mainly
due to the volume decrease of one major customer and the sale of Elcoteq's
Tallinn factory of which net sales still affected the year 2009 but not 2010.
Various new customers were won during the year but a lack of financing capacity
prevented the Company from absorbing all the business opportunities available in
the market. On the other hand the AMS business does not require the same level
of financing and grew according to expectations.
Operating loss decreased significantly in 2010 from the previous year and the
second half of the year was profitable. 2010 results were affected by non-
recurring costs of 11.1 million euros (37.0) arising from restructuring actions
implemented to mitigate the effects of lower net sales. The cost structure of
the Company is now materially leaner than in previous years.
In 2010 the Company focused on implementing its revised strategy and
strengthening its balance sheet and long-term financing. The strategy has been
well received by customers and the Company has been able to win new customers
and strengthen its position among existing customers. The Company continued to
adjust its operations to lower volumes, at the same time maintaining its
excellent services and global network to serve customers close to their end
markets. The efficiency-boosting actions continued in 2010 as in 2009:
increasing capacity utilization, aligning the organization to support the
adjusted strategy, and decreasing operational costs. The Company sold its'
subsidiary in St. Petersburg, Russia and closed an office in Kista, Sweden. The
Elcoteq group organization was also streamlined and simplified.
The Group's net financial income amounted to 61.8 million euros (-40.5).
Financial income was mainly attributable to one-time gains of approximately 79
million euros related to debenture repayment and hybrid securities transaction
executed in January 2010.
Fourth-quarter Net Sales and Earnings
Fourth-quarter net sales in 2010 increased compared to the third quarter and
amounted to 266.3 million euros (265.5 million euros in the fourth quarter of
2009 and 250.7 million euros in the third quarter of 2010). The level of net
sales has stabilized towards the end of 2010, also indicating the positive
change in the market environment.
Operating income in the fourth quarter was 4.2 million euros (-23.4 million
euros in the fourth quarter of 2009 and -2.5 in the third quarter of 2010).
Operating income exclusive of restructuring expenses in the fourth quarter was
5.4 million euros (-2.1). Restructuring expenses in the fourth quarter of 2010
were related mainly to unused asset write-offs and personnel lay-offs in Brazil
and to Group functions. Loss before taxes was -0.8 million euros (-36.4 million
euros in 2009).
Financing and Cash Flow
At the end of December 2010, Elcoteq had cash totaling 90.9 million euros (84.9
million euros in the third quarter of 2010 and 87.9 million euros at the end of
2009). The Company has reduced the 100 million euro syndicated committed credit
facility signed in April 2010 to 73.5 million euros. The credit facility was
fully utilized. The credit facility matures on June 30, 2011. The Company
continues negotiations for long term financing with various credit institutions
and investors.
At the end of December, the Group's interest-bearing net debt amounted to 12.6
million euros (187.5). The solvency ratio was 20.8% (6.3%) and gearing was 0.1
(5.8). The Group had 93.3 million euros in sold accounts receivable without
recourse at the end of December 2010 (0.0 million euros at the end of 2009).
Rolling 12-month return on capital employed (ROCE) was 30.4% (-18.9%).
Cash flow after investing activities in 2010 was 39.3 million euros (52.9), with
9.4 million euros in the fourth quarter due to improved profitability and a
decrease in working capital.
Going Concern
The current 73.5 million euro syndicated committed credit facility of the
company matures on June 30, 2011. The negotiations for refinancing are on-going
with the current bank syndicate, other financial institutions and equity
investors. On March 24, 2011 the Company was informed that the Board of
Directors of a Hungarian Bank has made a positive decision to grant via their
subsidiary bank a 5 year export financing revolving credit facility to the
Hungarian subsidiary of the Company. The formal decision will be taken and
disclosed on or soon after March 30, 2011. The amount of the credit facility is
100 million euros and its utilization dependent on the export volumes of the
company's subsidiary in Hungary.
The Board of Directors expects that due to positive decision on the above credit
facility the parallel negotiations of other financial agreements will continue
consisting of new revolving credit facility and new equity or equivalent
investment. These negotiations will be finalized by the end of June 2011.The
main business risks which may impact adversely the financing negotiations relate
to a sudden loss of a key customer or unforeseen large negative fluctuation in
working capital affecting the size of needed financing.
Even if the above negotiations have not yet been fully completed, agreements
closed and long term financing is not fully in place on the publishing date of
these consolidated financial statements, the Board of Directors have, after
making proper enquiries and studies of the present situation and especially
considering carefully the issues described above, concluded that they have a
reasonable expectation that the Company has and will have all needed resources
to continue its' operations and operational existence for the foreseeable
future. The Company therefore continues to adopt the going concern basis in
preparing its consolidated financial statements.
Capital Expenditures
The Group's gross capital expenditures on fixed assets in 2010 amounted to 10.5
million euros (6.4), or 1.0% of net sales. Depreciation was 32.3 million euros
(60.1), representing 3.0% of net sales. Investments were primarily made for
assembly machinery and test equipment. In 2010, investment activity was reduced
to a minimum in order to increase the capacity utilization of existing assets.
In the fourth quarter, investments amounted to 2.3 million euros (1.8). No new
operating lease contracts were made in 2010 (and in 2009).
Personnel
At the end of 2010, Elcoteq employed 7,899 (10,101) people: 106 (139) in Finland
and 7,793 (9,963) elsewhere. The geographical distribution of the workforce was
as follows: Europe 3,793 (3,940), Asia-Pacific 1,662 (2,664) and the Americas
2,444 (3,497). The average number of Elcoteq employees on the Company's direct
payroll in 2010 was 7,850 (11,271).
Wages, salaries and other personnel expenses in 2010 amounted to 106.4 million
euros (126.3).
Corporate Responsibility
Elcoteq's corporate responsibility includes economic, social and environmental
aspects. The Company's environmental management system corresponds with the
requirements of the ISO 14001:2004 standard. All Elcoteq units operate under a
multisite certificate for quality and environmental management. In 2010, Elcoteq
continued group-level internal audits of environmental, social accountability as
well as occupational health and safety standards. Further details on Elcoteq's
corporate responsibility activities will be presented in the Corporate
Responsibility Report, which will be published as part of the Annual Report
2010 during the week commencing April 11, 2011.
Research and Development
Elcoteq's research and development costs in 2010 totaled approximately 3.2
million euros (0.9), or 0.3 percent of net sales. The Company's R&D activities
cover, among other things, equipment and process development for production and
production testing needs as well as development related to the product platforms
in focus segments.
Strategic Business Segments
In the new organization, Elcoteq's business is divided into two Business
Segments - EMS (Electronics Manufacturing Services) and AMS (After Market
Services). Elcoteq's Electronics Manufacturing Services (EMS) Business Segment
provides its customers globally with engineering, configuring as well as demand
and supply services. Elcoteq's After Market Services (AMS) Business Segment is
providing its customers in the communications and consumer electronics
industries with high volume depot repair, refurbishment, recycling, reverse
logistics and related customer support services as well as with AMS-specific
engineering, sourcing and salvaging solutions.
This strategic change streamlines the organization by bringing manufacturing and
related services under one segment. With consolidated manufacturing services
Elcoteq is able to improve efficiency and the overall utilization of
manufacturing facilities, thus giving customers cost benefits through efficiency
and improved competencies. Further, by concentrating EMS and AMS services in
their own segments Elcoteq is better able to serve customers' short- and long-
term needs and further develop the Company's customer-oriented service offering.
In the EMS segment, Elcoteq configures and supplies products for well known
products' brands that are integrated into industrial or commercial systems or
used daily at homes and by industrial companies in their everyday business.
These products range from control and security, communication infrastructure and
lighting solutions to special purpose mobile device and home entertainment
systems.
The EMS segment offers wide range of services from design and component sourcing
to end customer delivery, including logistics and hub services. Different
customers demand different services: Elcoteq offers customer-tailored services
that aim for higher value-add content. Service providers, product design houses
and brand owners typically require the full range of services as they do not
have their own sourcing, manufacturing or logistics organizations. The world's
largest OEMs on the other hand usually require more specific services as they
need to complement their own capabilities with specific skills or capacity, or
complement their own offering within a specific geographical area.
The AMS Business Segment offers integrated global after market services
solutions to its customers in communications and consumer electronics segments
including OEMs, operators, retailers and insurance companies. For several years,
leading brands and network operators have been relying on Elcoteq as a trusted
AMS service provider with strong product knowledge. Consumer products providing
the focus for the AMS Business Segment include smart phones, flat panel TVs,
set-top boxes, gaming and personal navigation devices.
Elcoteq's global service center network enables AMS support in all key markets,
in Europe, Asia and Americas. The Company's entire high-volume depot repair
capacity is located in countries that offer superior cost competitiveness - in
Europe in Hungary and Estonia; in Asia in India and China and in Americas in
Mexico. All the AMS services are supported by reliable and industrialized repair
processes built on Elcoteq's long-term experience in electronics high volume
repair, refurbishment and configuring of sophisticated electronics devices.
As a response to increasing customer demand for further improvement in turn-
around time (TAT) and customer service, Elcoteq is setting up Front-End Service
Centers in selected logistics hubs located in Europe and the US. These Front-End
Service Centers can either be operated by Elcoteq or by selected service
partners and provide customers with reverse logistics and quick turn-around
repair services. For more complex repairs the defect products are shipped to
Elcoteq's regionally centralized Depot Repair Sites, which carry out more
detailed troubleshooting and high-volume repair in low cost environment.
In 2010, Elcoteq's largest customers (in alphabetical order) were EADS, Funai,
Huawei, Humax, Inmarsat, Nokia, Philips, RIM, Sharp, Sony Ericsson and
Technicolor.
EMS Business Segment
Net sales of the EMS segment started to pick-up and stabilize at the current
level during 2010. Although total annual net sales of the EMS segment declined,
the EMS segment showed more stable sales and improved profitability. Net sales
of the Electronics Manufacturing Services (EMS) Business Segment in 2010 were
962.9 million euros (1,413.1), contributing 90% of the Group's net sales. The
segment's operating result was at -5.5 million euros (-60.2), and at 5.2 million
euros, excluding restructuring costs (-24.0). Fourth quarter net sales in 2010
amounted to 240.8 million euros (240.0). The segment's operating profit in the
fourth quarter amounted to 5.5 million euros (-18.5 in the fourth quarter of
2009). Excluding restructuring costs the operating profit was 6.5 million euros
(2.8).
EMS profitability improved quarter by quarter during 2010 reaching positive
results in Q4 2010. This positive development was driven by successful
implementation of cost-reduction projects during the year and achievements in
the customer-portfolio improvement. Various new customers were won during
2010, thanks to the segments competitive service offering and proven track
record in the industry.
AMS Business Segment
Net sales of the After Market Services (AMS) Business Segment in 2010 were
107.0 million euros (90.1), contributing 10% of the Group's net sales. The
segment's operating profit was 12.5 million euros (11.4), and the segment did
not have any restructuring costs in 2010 or 2009. Fourth quarter net sales in
2010 amounted to 25.5 million euros (25.5 in the fourth quarter of 2009). The
segment's operating profit amounted to 2.9 million euros (4.5).
Forming the new AMS Business Segment effective as of October 2010 has resulted
in a more focused management and development of Elcoteq's after market services
business. Proactive development of Elcoteq's AMS offering is enabling us to
serve our customers' evolving needs with competitive global AMS solutions.
Geographical Areas
Elcoteq has three geographical areas: Europe, Asia-Pacific and the Americas.
Elcoteq's net sales in 2010 were derived from these areas as follows: Europe
66% (47%), Asia-Pacific 10% (14%) and the Americas 24% (38%).
Decisions of the Annual General Meeting
Elcoteq SE's Annual General Meeting took place on April 28, 2010, in Luxembourg.
The Meeting approved the consolidated and parent company's financial statements
for the financial year 2009 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 would be distributed for the
financial year January 1 - December 31, 2009.
The Meeting re-elected the following persons to the Board of Directors:
President Martti Ahtisaari; Mr. Heikki Horstia, BSc (Econ.); Mr. Eero Kasanen,
Executive Dean, Aalto University School of Economics; Mr. François Pauly, and
Mr. Jorma Vanhanen, founder-shareholder of Elcoteq SE. Mr. Pauli Aalto-Setälä,
Managing Director of Aller Media Oy, and Dr. Sándor Csányi, Chairman and CEO of
OTP Bank, were elected as new members to the Board of Directors.
The Meeting approved the Nomination Committee's proposal to pay to each member
of the Board of Directors an annual fee of 60,000 euros, of which 60% would be
paid in money and 40% in Elcoteq shares, the necessary shares to be acquired
during May 20 - June 3, 2010. The shares would not be transferred before the
next Annual General Meeting, unless the person's membership in the Board of
Directors ended prior to that.
The Meeting also decided that the Chairman of the Board of Directors would be
paid a fee of 45,000 euros per month and the Deputy Chairman of the Board of
Directors a fee of 10,000 euros per month.
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 December 31, 2010, the auditors fee to be paid as
per the appropriate invoice.
Decisions of the Extraordinary General Meeting
The Extraordinary General Meetings were convened to decide on actions and
authorizations supporting the execution of balance sheet restructuring and the
equity project.
The First EGM on October 12, 2010 validly deliberated and resolved that both
Mr. Hannu Krogerus and Mr. Paul Paukku are nominated to the Board of Directors
of Elcoteq SE. Hence, as of October 12, 2010, Elcoteq SE`s Board of Directors
consist of eight (8) persons and the composition is as follows: Mr. Pauli Aalto-
Setälä, President Martti Ahtisaari, Mr. Heikki Horstia, Mr. Eero Kasanen, Mr.
Hannu Krogerus, Mr. Paul Paukku, Mr. François Pauly and Mr. Jorma Vanhanen. Dr.
Sándor Csányi resigned from the Board of Directors of Elcoteq SE in June 2010.
The First EGM did not reach the quorum requirement for deciding on the actions
and authorizations supporting the execution of balance sheet restructuring and
the equity project, hence the shareholders were invited to attend a second EGM
of shareholders of the Company scheduled to take place on 11 November, 2010.
The Extraordinary General Meeting (EGM) of the shareholders of Elcoteq SE was
held on November 11, 2010 in Luxembourg. Among other items on the agenda, were,
Board of Directors proposals for increasing the authorized share capital.
The EGM decisions were as follows:
To increase the maximum limit of the authorized share capital of the Company,
which includes the issued share capital, from its current amount of forty
million euros (EUR 40,000,000) up to ninety-five million euros (EUR 95,000,000)
and accordingly to amend the current article 21 of the Articles of Association
of the Company;
To authorize the Board of Directors to issue new shares and convertible debt
instruments within the authorized share capital of the Company without reserving
the existing shareholders a preferential subscription right, up to an amount of
forty million euros (EUR 40,000,000) of the authorized share capital
corresponding to a maximum of 100,000,000 new A-shares. This authorization is
divided as follows: up to twenty-eight million euros (EUR 28,000,000) for an
authorization period of one year, starting on the day of the EGM, and the
remaining twelve million euros (EUR 12,000,000) for an authorization period of
five years, starting on the day of the EGM;
To authorize the Board of Directors to issue new shares and convertible debt
instruments within the remainder of the authorized share capital of forty-one
million eight hundred twenty-four thousand three hundred twenty-six euros (EUR
41,824,326) for an authorization period of five years respecting the existing
shareholders' preferential subscription right, corresponding to a maximum of
104,560,815 new A shares, and to amend the current article 22 of the Articles of
Association accordingly;
To delete from the Company's Articles of Association all references to previous
K shares;
To change the administrative language of the Company from German into French and
to amend the current article 44 of the Articles of Association accordingly; and
To restate the Company's Articles of Association in order to reflect the changes
voted upon at the EGM of the shareholders of the Company. The restatement
implies a renumbering of the Company's Articles of Association.
Balance Sheet Strengthening
On January 27, 2010 Elcoteq announced its decision to issue hybrid securities
with a nominal value of 29 million euros in a private placement. The proceeds
from the hybrid securities issue were used directly to redeem the 105 million
euros nominal amount of Elcoteq's existing outstanding debenture bonds at a
price of 25% of the nominal value. On May 11, 2010 the Company completed an
offer made on April 16, 2010 to the holders of its then remaining outstanding
debentures to exchange their debenture bonds for a combination of hybrid bonds
and Warrants. As a result, the holders of debentures valued at approximately
21.5 million euros tendered their debentures and Elcoteq issued hybrid bonds in
corresponding value and 4,350,138 Warrants. Each Warrant entitles its holder to
subscribe for one new A Share in Elcoteq.
As a result of the above transactions, reversing the related deferred tax assets
and recognizing the hybrid securities as equity in Elcoteq's balance sheet, the
Company's equity increased by approximately 108.4 million euros.
On April 30, 2010 the Company entered into loan documentation with its senior
lenders with respect to a new revolving credit facility ("RCF") in the amount of
100 euros million on the basis of a committed term sheet on March, 2010.
Pursuant to the loan documentation, the RCF, which will mature on 30 June 2011,
shall be reduced to 67 million euros by March 31, 2011. Due to the Company's
financial situation and the current market conditions, the total cost of
financing under the RCF is substantial.
The Company sold all the shares in ZAO Elcoteq, its Russian subsidiary with
operations in St Petersburg, including its premises and employees but excluding
any customer contracts, to Optogan CJSC on May 19, 2010. The sales proceeds of
16.5 million euros were used to repay part of the RCF. The Company has further
repaid the RCF in an amount of 10 million euros.
On December 3, 2010, Elcoteq decided to apply for the listing of the 4,350,138
warrants issued by the Company on May 11, 2010 in connection with the Exchange
Offer made earlier in spring 2010 in order for the warrants to be traded on
NASDAQ OMX Helsinki Ltd. Trading of the warrants commenced on December 7, 2010.
Negotiations on the comprehensive and long-term refinancing of the company
continued at the end of 2010. Due to the status and structure of the refinancing
negotiations it was inadvisable to arrange a separate share issue in the middle
of the process. A directed share or a rights issue or any combination of these
two was therefore postponed in 2010 and is being planned for 2011 as a part of
the new financing structure.
Restructuring Plan
Elcoteq has continued the Restructuring Plan originally launched in January
2009 to adapt to the radical changes in the market situation and in order to
execute further cost-saving potential.
In 2010 Elcoteq sold its' subsidiary in St. Petersburg, Russia and closed an
office in Kista, Sweden. The Elcoteq group organization was also streamlined and
simplified to improve cost efficiency. As a result of this organizational
change, the Company conducted personnel reductions in Group supporting
functions. Cost-saving measures have continued at most of the factories as well.
Shares and Shareholders
At the end of 2010, Elcoteq's share capital altogether consisted of 32,939,185 A
shares. The par value of each Series A share is 0.40 euros. The Company's
registered share capital on December 31, 2010 totaled 13,175,674 euros.
In 2010, a total of 105,770,000 Elcoteq SE Series K shares were converted into
Series A shares at the ratio of ten Series K shares to one Series A share, i.e.
the total number of Series A shares is now 32,939,185. The conversion was
registered in the Luxembourg Trade Register on July 29, 2010. Trading in the new
Series A shares commenced on August 2, 2010.
All of the shares carry one vote at general shareholders' meetings. Elcoteq
shares confer financial rights in proportion to their par value.
Elcoteq had 10,065 registered shareholders at the end of 2010. There were a
total of 3,778,192 nominee-registered or foreign-registered A shares,
representing some 11.47 percent of the total number of shares and 11.47 percent
of the votes outstanding.
Incentive Schemes
Share Subscription Plan 2009
The Company had an incentive plan based on the results for 2009 for the
motivation and commitment of the Company's key personnel by means of a share
subscription plan. The targets for 2009 were not met and thus no shares were
issued during 2010.
Changes in Elcoteq's Management
As of December 31, 2010 the Elcoteq Management Team consists of the following
persons:
Mr. Jouni Hartikainen, President and CEO
Mr. Sándor Hajnal, Senior Vice President, Human Resources
Mr. Vesa Keränen, Senior Vice President, After Market Services
Mr. Tommi Pettersson, Senior Vice President, Electronics Manufacturing Services
Mr. Tomi Saario, Senior Vice President, New Sales and Business Development
Mr. Markus Skrabb, Senior Vice President, Legal Affairs (as of February 1, 2011)
Mr. Roger Taylor, Senior Vice President, Group Operations and Sourcing
Mr. Olli-Pekka Vanhanen, Vice President, Business Control and Accounting (as of
January 1, 2011)
Events After the Financial Year
On March 2, 2011 Elcoteq SE, through its U.S. subsidiary, acquired 100 % of the
shares of BroadTech Inc, a company based in Lewisville, Texas providing After
Market Services (AMS). BroadTech is offering reverse logistics, repair,
refurbishment and related information management services to the wireless and
consumer electronics industries. The acquisition of BroadTech further
strengthens Elcoteq's AMS offering in the U.S. and will serve as a global
platform in developing Elcoteq's reverse logistics and quick turn-around repair
services.
On March 24, 2011 the Company was informed that the Board of Directors of a
Hungarian Bank has made a positive decision to grant via their subsidiary bank a
5 year export financing revolving credit facility to the Hungarian subsidiary of
the Company. The formal decision will be taken and disclosed on or soon after
March 30, 2011. The amount of the credit facility is 100 million euros and its
utilization dependent on the export volumes of the company's subsidiary in
Hungary.
Short-Term Risks and Uncertainty Factors
The Company operates in a working-capital-intensive business environment where
access to and availability of sufficient financing represents a risk factor. The
Board of Directors has assessed the Company's financing requirements against the
business plan. The Company's ability to implement its business plan is highly
dependent on the availability of debt financing, better control of working
capital and cash pooling as well as the ability to stabilize the financing
structure, including the strengthening of shareholders' equity under volatile
market conditions.
The Company bases component purchases and resource commitments on customers'
forecasts. Sudden changes in customers' demand may cause the company to have
excess inventories which are under customers' liability but which the Company
may have to finance for a certain period of time. The Company makes a
significant part of its purchases and sales in currencies other than the euro
and currency fluctuations may result in deviations from business plans. The
ability to provide the right service offering to customers is a key element in
keeping existing customers and winning new customers. Under the changing market
conditions the failure to identify and respond to the customer requirements may
prevent the Company from achieving the strategic objectives and the above
operative targets.
The Company's key short-term operative challenges are to increase sales,
proactively manage fixed costs according to sales fluctuations and significantly
improve profitability. Further the Company's ability to arrange adequate long-
term financing is a short-term risk.
The natural disaster in Japan affects on the Company's component supplies and
therefore causes volume and profitability risk in short and medium term.
Market Outlook
The electronics industry market will grow over the next few years. Overall, the
EMS market is driven by growth in end-user demand and the companies' outsourcing
rates. EMS market is highly competitive where market shares are divided among
both large EMS providers and small and medium-sized service providers. The
combination of technical knowledge and customer-oriented service offering has
become an important factor for many customers in choosing the best-fit EMS
partner.
The AMS market is expected to grow in the future reflecting the growth of the
electronics market. Increasing failure rates in electronics, caused by higher
product complexity, price pressures and shortening life cycles across the
electronics industry, are key drivers for AMS market growth. In addition,
network operators and carriers, emphasize repair services and fast turn-around-
time in order to retain customer satisfaction and maximize their own revenues.
The AMS market remains relatively immature, with the majority of AMS activities
still conducted either in-house or by small local repair shops, thus bringing
several growth opportunities for outsourcing.
Outlook 2011
Elcoteq's net sales are estimated to stay at the same level as in 2010. The
operating income is expected to be positive for the whole year although the
first quarter result will be clearly negative due to lower volumes.
Board's Dividend Proposal
The Board of Directors proposes to the Annual General Meeting to be held on
April 28, 2011, that no dividend would be paid for the financial year 2010.
Annual General Meeting 2011
Elcoteq's Annual General Meeting will be held in Luxembourg on April 28, 2011. A
separate Shareholder Information Meeting will be held in Helsinki before the
Annual General Meeting, on April 20, 2011.
March 28, 2011
Board of Directors
Further information:
Jouni Hartikainen, President and CEO, +358 10 413 11
Olli-Pekka Vanhanen, Vice President, Business Control and Accounting, +
358 10 413 11
Press Conference and Webcast
Elcoteq will hold a combined press conference, conference call and webcast in
English at 2.00 pm (EET) on Tuesday, March 29, in the Tapiola room at Scandic
Hotel Simonkenttä (address: Simonkatu 9, Helsinki, Finland).
To participate via a conference call, please dial in 5-10 minutes before the
beginning of the event: +44 203 043 24 36 (Europe), +1 866 458 40 87 (USA) or +
358 9 23 101 527 (FI). The password is Elcoteq.
The press conference can also be followed as a live webcast or later as a
recording via Elcoteq's website www.elcoteq.com.
The presentation material used at the press conference (pdf file) will be
available on the Company's website www.elcoteq.com on March 29, 2011.
Elcoteq will publish its Interim Report for January-March 2011 at 9.00 am (EET)
on Wednesday, May 4, 2011.
Enclosures:
1 Consolidated statement of comprehensive income
2 Consolidated Balance Sheet
3 Consolidated Cash Flow Statement
4 Consolidated statement of changes in
equity
5 Segment reporting
6 Personnel
7 Definition of key indicators
8 Key indicators
9 Restructuring expenses
10 The Hybrid Bonds and warrants
11 Assets pledged and contingent liabilities
12 Quarterly figures
Standards and Interpretations Applied as from January 1, 2010
The Group adopted the following standards and interpretations on January
1, 2010:
-Revised IFRS 3 Business combinations. The revised standard maintains the
requirement to apply the acquisition method to business combinations but with
some significant changes, such as expensing of transaction costs. In addition,
all payments to purchase a business are to be recorded at fair value at the
acquisition date, with some contingent payments subsequently remeasured at fair
value through profit or loss. There is a choice on an acquisition-by-acquisition
basis to measure the non-controlling interest in the acquiree either at fair
value or at the non-controlling interest's proportionate share of the acquiree's
net assets. The revised standard has not had any impact on the financial
position or performance of the Group.
-Revised IAS 27 Consolidated and Separate Financial Statements requires the
effects of all transactions with non-controlling interests to be recorded in
equity if there is no change in control and these transactions will no longer
result in goodwill or gains and losses. The standard also specifies the
accounting when control is lost. Any remaining interest in the entity is
remeasured to fair value, and a gain or loss is recognized in the profit or
loss. The revised standard has not had any material impact on the Group.
Other new interpretations or amendments to standards effective as of January
1, 2010 have not been relevant to the Group.
- Amendment to IAS 39 Financial instruments: Recognition and measurement -
Designation of items as hedged items
- IFRIC 16 Hedges of net investment in a foreign operation
- IFRIC 17 Distributions of non-cash assets to owners
- IFRIC 18 Transfers of assets from customers
- Amendment to IFRS 2 Share-based payment - Intra-group cash-settled, share-
based payment transaction
Appendix 1
Consolidated statement of comprehensive income
Jan. 1 - Jan. 1 -
Dec. 31, Dec. 31,
EUR 1,000 2010 2009
--------------------------------------------------------------------------------
NET SALES 1,069,887 1,503,205
Change in work in progress
and finished goods -202 -44,420
Other operating income 19,631 13,337
Production materials and services -885,658 -1,225,529
Personnel expenses -106,387 -126,328
Depreciation and amortization -32,262 -60,143
Restructuring expenses -11,071 -37,049
Other operating expenses -72,077 -99,620
--------------------------------------------------------------------------------
OPERATING LOSS -18,139 -76,545
Financial income, total 95,645 3,322
Financial expenses, total -33,831 -43,813
Share of the profit/losses of associated companies
(net of income tax) 27 -68
--------------------------------------------------------------------------------
PROFIT/LOSS BEFORE TAXES 43,702 -117,105
Income taxes -27,877 8,139
--------------------------------------------------------------------------------
NET PROFIT/LOSS 15,825 -108,966
Other comprehensive income
Effective portion of changes in fair value of cash
flow hedges 286 3,465
Net gain/loss on hedges of net
investments in foreign operations -591 2,988
Foreign currency translation
differences for foreign operations 572 1,149
Income tax relating to components of
other comprehensive income -30 -405
--------------------------------------------------------------------------------
Other comprehensive income for the
period, net of tax 237 7,197
TOTAL COMPREHENSIVE INCOME/LOSS
FOR THE YEAR 16,062 -101,769
PROFIT/LOSS FOR THE YEAR ATTRIBUTABLE TO:
Owners of the parent company * 14,755 -105,045
Non-controlling interests - Hybrid capital investors 3,319 -
Non-controlling interests - others -2,250 -3,920
--------------------------------------------------------------------------------
15,825 -108,966
TOTAL COMPREHENSIVE INCOME/LOSS ATTRIBUTABLE TO:
Owners of the parent company 14,129 -98,434
Non-controlling interests - Hybrid capital investors 3,319 -
Non-controlling interests - others -1,387 -3,335
--------------------------------------------------------------------------------
16,062 -101,769
Earnings per share calculated on profit/loss
attributable
to owners of the parent company
Basic earnings per share (EUR) 0.45 -3.22
Diluted earnings per share (EUR) 0.42 -
* Net profit/loss reported by the company.
Appendix 2
Consolidated Balance Sheet
EUR 1,000 Dec. 31, 2010 Dec. 31, 2009
----------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets
Goodwill 21,510 21,510
Other intangible assets 5,074 3,882
----------------------------------------------------------------------------
26,584 25,392
Property, plant and equipment
Land 772 772
Buildings 29,814 33,063
Machinery and equipment 28,820 45,744
Advance payments and
construction in progress 1,415 1,375
----------------------------------------------------------------------------
60,821 80,954
Investments
Investments in associated companies 81 77
Available-for-sale financial assets 485 511
----------------------------------------------------------------------------
566 588
Non-current receivables
Loans receivable - 0
Receivables from associated companies 87 87
Deferred tax assets 15,499 41,906
----------------------------------------------------------------------------
Non-current assets, total 103,557 148,928
----------------------------------------------------------------------------
Current assets
Inventories
Raw materials 86,649 64,675
Work in progress 1,128 693
Finished goods 4,072 4,062
----------------------------------------------------------------------------
91,849 69,431
Current receivables
Accounts receivable 166,104 155,280
Other receivables 14,980 24,773
Prepaid expenses and accruals 7,034 9,864
Current tax assets 873 3
----------------------------------------------------------------------------
188,991 189,919
Cash and cash equivalents 90,923 87,941
Assets classified as held for sale - 19,049
Current assets, total 371,762 366,340
----------------------------------------------------------------------------
ASSETS, TOTAL 475,319 515,268
EUR 1,000 Dec. 31, 2010 Dec. 31, 2009
----------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity attributable to owners of the
parent company
Share capital 13,176 13,176
Additional paid-in capital 231,754 225,011
Other reserves 8,548 8,224
Translation differences 5,897 6,779
Retained earnings -213,663 -228,418
----------------------------------------------------------------------------
Equity attributable to owners of the
parent company, total 45,712 24,772
Non-controlling interests - Hybrid
capital investors 46,733 -
Non-controlling interests - others 6,445 7,832
Total equity 98,890 32,603
Liabilities
Non-current liabilities
Subordinated notes - 89,869
Medium-term notes 19,992 19,986
Other debt 259 197
Deferred tax liability 1,516 2,496
----------------------------------------------------------------------------
Non-current liabilities, total 21,766 112,548
Current liabilities
Loans from financial institutions 75,219 115,429
Subordinated notes 8,067 49,925
Advances received 155 174
Accounts payable 223,930 165,207
Other current liabilities 19,078 8,063
Accrued expenses 25,667 26,454
Current tax liabilities 780 151
Provisions 1,767 4,713
----------------------------------------------------------------------------
Current liabilities, total 354,663 370,117
Liabilities, total 376,429 482,664
----------------------------------------------------------------------------
EQUITY AND LIABILITIES, TOTAL 475,319 515,268
Appendix 3
Consolidated Cash Flow Statement
Jan. 1 - Jan. 1 -
Dec. 31,
EUR 1,000 2010 Dec. 31, 2009
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Net profit/loss 15,825 -108,966
Adjustments:
Depreciation and amortization 32,262 60,143
Net finance costs -61,814 40,492
Gain on sale of property, plant
and equipment -3,341 -3,499
Unrealized foreign exchange gains
and
losses on operating activities 4,526 1,033
Goverment grants -488 -1,175
Impairment losses and reversal of
impairment losses on assets 7,913 13,417
Income taxes 27,877 -8,139
Other adjustments 8,893 20,684
--------------------------------------------------------------------------------
Cash flow before change in working
capital 31,653 13,989
Change in working capital :
Change in non-interest bearing
current receivables -11,557 136,328
Change in inventories -20,135 184,431
Change in non-interest bearing
current liabilities 55,560 -270,219
--------------------------------------------------------------------------------
Cash flow from operating activities
before financial items and taxes 55,521 64,528
Interest paid -25,786 -23,819
Interest received 704 707
Income taxes paid -1,547 -1,060
--------------------------------------------------------------------------------
Net cash from operating activities 28,893 40,356
CASH FLOW FROM INVESTING ACTIVITIES**
Purchases of property, plant and
equipment and intangible assets -13,612 -4,357
Proceeds from sale of property,
plant and equipment and intangible
assets 7,683 16,644
Acquisitions of subsidiaries, net
of cash acquired - 253
Disposal of subsidiaries, net of
cash disposed of 16,327 -
--------------------------------------------------------------------------------
Net cash from investing activities 10,400 12,541
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from hybrid capital loan 28,650 -
Proceeds from the revolving credit
facility - 100,000
Loan transaction costs - -3,000
Proceeds from current debt 5,075 -
Repayment of current debt (incl.
loans from the revolving credit
facility) -56,141 -153,137
Repayment of non-current debt -19,956 -
Dividends paid 0 -2,442
--------------------------------------------------------------------------------
Net cash used in financing activities -42,372 -58,580
NET DECREASE IN CASH AND CASH
EQUIVALENTS -3,079 -5,683
Cash and cash equivalents at January
1 87,941 95,099
Effect of exchange rate changes on
cash held 6,061 -1,475
--------------------------------------------------------------------------------
Cash and cash equivalents at December
31* 90,923 87,941
* Part of the cash and cash equivalents is not available for use
by the group. See note 22
** Financing activities include non-monetary transactions that are
excluded from the cash flow statement.
See note 11.
Appendix 4 (a)
Consolidated statement of changes in equity
2010
Attributable to equity holders of the parent
Additional Reserve
Share paid-in Other Hedging Translation for own
EUR 1,000 capital capital reserves reserve reserve shares
-----------------------------------------------------------------------
BALANCE AT
JAN. 1 2010 13176 225011 8369 -78 6779 -67
Total
comprehensive
income 256 -882
-----------------------------------------------------------------------
Total comprehensive income 256 -882
-----------------------------------------------------------------------
Transactions
with owners
Hybrid capital
loans granted
Option rights
issued 6743
Granted own
shares 67
-----------------------------------------------------------------------
Transactions with
owners 6743 67
-----------------------------------------------------------------------
BALANCE AT
DEC. 31, 2010 13176 231754 8369 179 5897 0
-----------------------------------------------------------------------
2009
Additional Reserve
Share paid-in Other Hedging Translation for own
EUR 1,000 capital capital reserves reserve reserve shares
-----------------------------------------------------------------------
BALANCE AT
JAN. 1, 2009 13041 225011 8369 -3139 3227 -68
Total
comprehensive
income 3060 3552
-----------------------------------------------------------------------
Total comprehensive income 3060 3552
-----------------------------------------------------------------------
Transactions
with owners
Share issue 135 1
Share-based payments
Dividends
-----------------------------------------------------------------------
Transactions
with owners 135 1
-----------------------------------------------------------------------
Divestment of
non-controlling
interest
BALANCE AT
DEC. 31, 2009 13176 225011 8369 -78 6779 -67
-----------------------------------------------------------------------
Appendix 4 (b)
Consolidated statement of changes in equity
2010
Attributable to equity holders of the parent
Non-
controlling
interests - Non-
Hybrid controlling
Retained capital interests - Total
EUR 1,000 earnings Total investors others equity
---------------------------------------------------------------------------
BALANCE AT
JAN. 1 2010 -228418 24772 0 7832 32603
Total
comprehensive
income 14755 14129 3319 -1387 16061
---------------------------------------------------------------------------
14755 14129 3319 -1387 16061
---------------------------------------------------------------------------
Transactions
with owners
Hybrid capital
loans granted 0 43414 43414
Option rights
issued 6743 6743
Granted own
shares 67 67
---------------------------------------------------------------------------
6810 43414 50224
---------------------------------------------------------------------------
BALANCE AT
DEC. 31, 2010 -213663 45712 46733 6445 98890
---------------------------------------------------------------------------
2009
Non-
controlling
interests - Non-
Hybrid controlling
Retained capital interests - Total
EUR 1,000 earnings Total investors others equity
---------------------------------------------------------------------------
BALANCE AT
JAN. 1, 2009 -123958 122484 - 12728 135212
Total
comprehensive
income -105045 -98433 -3335 -101768
---------------------------------------------------------------------------
Total comprehensive income -105045 -98433 - -3335 -101768
---------------------------------------------------------------------------
Transactions
with owners
Share issue -135 1 1
Share-based
payments 720 720 720
Dividends -2442 -2442
---------------------------------------------------------------------------
Transactions
with owners 585 721 - -2442 -1721
---------------------------------------------------------------------------
Divestment of
non-controlling
interest 880 880
BALANCE AT
DEC. 31, 2009 -228418 24772 - 7832 32603
---------------------------------------------------------------------------
Other reserves comprise of the parts of equity that are required to be
transferred into restricted capital according to local legislation of the Group
companies.
Hedging reserve is the effective portion of the cumulative net change in the
fair value of cash flow hedging instruments related to hedged transactions that
have not yet occurred.
Translation reserve includes the foreign currency differences arising from the
translation of the financial statements of foreign operations, as well as from
the translations of liabilities that hedge the company's net investment in a
foreign subsidiary.
Reserve for own shares, the reserve for the company's own shares comprises the
cost of the parent company's shares held by the Group. At December 31, 2010 the
Group did not hold any shares of the parent company (2009: 9,501 shares).
Appendix 5
Segment reporting
There are two reportable operating segments in Elcoteq, which are as follows:
* The EMS (Electronics Manufacturing Services) Business Segment concentrates
on serving its customers in Engineering, Manufacturing and Demand&Supply
services globally.
* The AMS (After Market Services) Business Segment concentrates on providing
its customers with reverse logistics, configuration, repair, refurbishment
and other after market services.
For management purposes, Elcoteq is organized into two operating segments based
on their products and services.
Performance for both Business units are assessed based on segments' profit or
loss and how the customer relationships and service offerings are taken care of.
Various Group level functions including New Sales and Group Operations support
Business Segments. The presented segment information is based on the information
provided to the Group's management.
Restatement
Elcoteq launched a new organization structure effective as of October 1, 2010.
Prior to the change, there were two Strategic Business Units: Consumer
Electronics and Systems Solutions. Elcoteq has restated the corresponding
information for earlier periods.
Accounting Principles
There are no inter-segment sales between the segments. The accounting policies
for segment reporting do not differ from the Group's accounting policies.
Segments' financial income and financial expenses are reported as net financial
charges. Profit for each operating segment does not include income
taxes.
The segments' assets comprise property, plant and equipment and intangible
assets, investments in associated companies, inventories, accounts receivable
and allocatable prepaid expenses and accruals.
The segments' liabilities include accounts payable and accrued expenses
allocated to them.
Non-Allocated Items
The expenses of the Group office such as general and administrative expenses,
head office expenses, and other expenses that are incurred at the group level
and relate to the group as a whole, are not considered to be segment expenses.
Segment assets do not include cash and cash equivalents, and prepaid expenses
and accruals not allocated to the segments as these assets are managed on a
group basis.
Segment liabilities do not include interest-bearing liabilities, which are
managed by the treasury function.
In addition deferred tax liabilities and accrued expenses are not allocated to
the segments as these liabilities are managed on a group basis.
Investments in associated companies that cannot be allocated to the segments are
entered under non-allocated assets.
Information about reportable segments
BUSINESS SEGMENTS IN 2010, MEUR AMS EMS Total
-------------------------------------------------------------- --------
Net sales 107.0 962.9 1,069.9
Depreciation and amortization -2.3 -28.8 -31.1
Operating profit/loss 12.5 -5.5 7.0
Restructuring expenses* - -10.7 -10.7
Financial charges -1.4 -25.3 -26.7
Profit / loss before taxes 11.1 -30.8 -19.7
Other material non-cash items:
Impairment losses on tangible assets - -11.4 -11.4
Reversal of impairment losses on tangible assets - 3.5 3.5
Assets** 27.5 325.9 353.4
Investments in associated companies*** - 0.1 0.1
Capital expenditures 0.2 9.1 9.3
Liabilities 8.6 234.2 242.8
Sold accounts receivable**** - 93.3 93.3
*) A total of 8.6 million euros in restructuring expenses with no cash flow
effect have been recognized, of which 8.5 million euros are included in the
restructuring expenses of EMS, and 0.1 million euros in the restructuring
expenses of the Group's non-allocated costs.
**) There are no assets classified as held for sale as of December
31, 2010.
***) Included also in the segment's assets.
****) Not included in the segment's assets.
BUSINESS SEGMENTS IN 2009, MEUR AMS EMS Total
-----------------------------------------------------------------------
Net sales 90.1 1,413.1 1,503.2
Depreciation and amortization -1.6 -56.6 -58.2
Operating profit/loss 11.4 -60.2 -48.8
Restructuring expenses* - -36.2 -36.2
Financial charges -1.1 -29.1 -30.2
Share of associated companies' results - -0.1 -0.1
Profit / loss before taxes 10.4 -89.4 -79.0
Other material non-cash items:
Impairment losses on intangible assets - 0.0 0.0
Impairment losses on tangible assets - -23.6 -23.6
Impairment losses on investments in associated companies - -1.4 -1.4
Assets** 15.3 351.7 367.0
Investments in associated companies*** - 0.1 0.1
Capital expenditures 0.2 5.3 5.5
Liabilities 6.7 174.9 181.6
*) A total of 28.0 million euros in restructuring expenses with no cash flow
effect have been recognized, of which 27.9 million euros are included in the
restructuring expenses of EMS, and 0.1 million euros in the restructuring
expenses of the Group's non-allocated costs.
**) The assets of the segments include a total of 19.0 million euros in
available-for-sale assets, which are allocated to the EMS Business Segment.
***) Included also in the segment's assets.
Reconciliation of reportable segment operating profit/loss, profit/loss before
taxes, assets and liabilities, and other material items
MEUR 2010 2009
Profit / loss
Total operating profit / loss for reportable segments 7.0 -48.8
Unallocated corporate expenses -25.1 -27.7
-------------
Consolidated operating loss -18.1 -76.5
Total share of associated companies' results for reportable
segments - -0.1
Total Financial charges for reportable segments -26.7 -30.2
Unallocated Financial charges 88.5 -10.3
-------------
Consolidated profit / loss before taxes 43.7 -117.1
-------------
Assets
Total assets for reportable segments 353.4 367.0
Cash and cash equivalents 90.9 87.9
Deferred tax assets 15.5 41.9
Other unallocated assets 15.5 18.5
-------------
Consolidated total assets 475.3 515.3
-------------
Liabilities
Total liabilities for reportable segments 242.8 181.6
Interest-bearing liabilities 103.5 275.4
Other unallocated liabilities 30.1 25.7
-------------
Consolidated total liabilities 376.4 482.7
-------------
Other material items
Total restructuring expenses for reportable segments -10.7 -36.2
Unallocated amounts -0.4 -0.8
-------------
Consolidated total restructuring expenses -11.1 -37.0
-------------
Total financial charges for reportable segments -26.7 -30.2
Gain from debenture repayment and the classification of the
hybrid capital 79.1 -
Other unallocated amounts 9.4 -10.3
-------------
Consolidated total financial charges 61.8 -40.5
-------------
Total capital expenditure for reportable segments 9.3 5.5
Unallocated amounts 1.2 0.9
-------------
Consolidated total capital expenditure 10.5 6.4
-------------
Total depreciation for reportable segments -31.1 -58.2
Unallocated amounts -1.2 -1.9
-------------
Consolidated total depreciation -32.3 -60.1
-------------
Geographical Areas
AMS and EMS are managed on a worldwide basis. Elcoteq's service network covers
countries in Europe, Asia-Pacific and Americas. It includes high-volume
manufacturing plants, units specializing in smaller series, as well as product
development units and new product introduction (NPI) centers. All of the
company's high-volume plants are located close to the main end-markets of
customers' products and in cost-competitive countries: in Hungary, Estonia,
China, Mexico, India and Brazil.
In presenting information on the basis of geographical segments, segment revenue
and assets are based on the geographical location of the manufacturing unit.
Net sales by countries are presented according to geographical location of the
manufacturing unit under "Breakdown of net sales by country".
Group has no non-current assets in its country of domicile in Luxembourg.
GEOGRAPHICAL AREAS IN 2010,
MEUR Europe Asia-Pacific Americas Other Region Total
--------------------------------------------------------------------------------
Net sales 710.9 105.2 253.8 - 1,069.9
Non-current assets 48.3 27.1 12.4 0.3 88.1
GEOGRAPHICAL AREAS IN 2009,
MEUR Europe Asia-Pacific Americas Other Region Total
--------------------------------------------------------------------------------
Net sales 710.4 217.7 575.1 - 1,503.2
Non-current assets 51.3 31.3 15.7 8.7 107.0
Major customers
During fiscal year 2010, revenue from two customers of both segments, and one
customer of EMS segment represents approximately 32%, 13%, and 27%,
respectively, of the Group's total revenue.
During fiscal year 2009, revenue from three customers of both segments
represents
approximately 45%, 18% and 18% of the Group's total revenue.
BREAKDOWN OF NET SALES BY COUNTRY
MEUR 2010 2009
-----------------------------------------------
Hungary 676.7 578.7
Mexico 158.8 521.5
China 96.1 125.3
Brazil 94.9 50.7
Estonia 33.4 129.4
India 9.0 92.5
Luxemburg (country of domicile) 0.0 0.0
Other countries 1.0 5.1
-----------------------------------------------
1,069.9 1,503.2
BREAKDOWN OF NON-CURRENT ASSETS BY COUNTRY
MEUR 2010 2009
-----------------------------------------------
Hungary 44.3 48.5
China 26.2 30.9
Brazil 7.1 7.8
Mexico 5.2 7.8
Other countries 5.3 12.1
-----------------------------------------------
88.1 107.0
Appendix 6
PERSONNEL
The Group had on average 7,783 (11,271) employees during the year, distributed
geographically as follows.
At Dec. 31 At Jan. 1 Change Average
------------------------------------------------
Brazil 623 861 -238 866
China 1,100 2,046 -946 1,828
Estonia 285 165 120 212
Finland 107 139 -32 128
Germany 3 4 -1 4
Hong Kong 24 30 -6 25
Hungary 2,159 2,056 103 2,015
India 535 583 -48 523
Japan 2 4 -2 3
Luxembourg 1 5 -4 4
Mexico 1,793 2,529 -736 2,131
Romania 0 0 0 0
Russia 0 20 -20 8
Sweden 0 4 -4 2
Switzerland 5 8 -3 7
USA 21 35 -14 27
------------------------------------------------
Total 6,658 8,489 -1,831 7,783
On December 31, 2010 the Group employed 7,899 people, of whom 6,658 were on
Elcoteq's payroll.
Appendix 7
DEFINITION OF KEY INDICATORS
Return on equity (ROE) = Profit/loss for the year x 100
----------------------------------------
Total equity, average of opening and
closing balances
(Profit/loss before taxes + interest
and other financial expenses +
profit/loss from discontinued
operations before taxes and financial
Return on investments (ROI/ROCE) = expenses) x 100
----------------------------------------
Total assets - non-interest bearing
liabilities, average of opening and
closing balances
(Profit/loss before taxes + interest
and other financial expenses +
Return on investment (ROI/ROCE) profit/loss from discontinued
operations before taxes and financial
for trailing 12 months = 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 in the balance sheet
----------------------------------------
Total equity (incl. hybrid securities)
Equity per share (2006-2007) = Equity attributable to equity holders
of the parent company
----------------------------------------
Adjusted average number of shares
outstanding at the end of the period
Equity per share = Equity attributable to owners of the
parent company
----------------------------------------
Adjusted average number of A shares
outstanding at the end of the period +
(Adjusted average number of K founders'
shares outstanding at the end of the
period/10)
Earnings per share, A shares (EPS) = Profit/loss for the year attributable
to equity holders of the parent -
accumulated interest of hybrid
securities for the reporting period
----------------------------------------
Adjusted average number of shares
outstanding during the period
Earnings per share, diluted,
A shares (EPS) = Profit/loss for the year attributable
to equity holders of the parent -
accumulated interest of hybrid
securities for the reporting period
----------------------------------------
Adjusted average number of shares
outstanding during the period + effect
of dilution on the number of shares
Earnings per share, K shares (EPS)
(2006-2007) =
Profit/loss for the year attributable
to equity holders of the parent, K
shares
----------------------------------------
Adjusted average number of K shares
outstanding during the period
Earnings per share, K founders' share Profit/loss for the year attributable
to equity holders of the parent, K
(EPS) = founders' shares
----------------------------------------
Adjusted average number on K founders'
shares outstanding during the period
Dividend per share = Dividends paid for the financial year
----------------------------------------
Adjusted average number of shares
outstanding at the end of the period
Payout ratio= Dividend per share x 100
----------------------------------------
Earnings per share
Dividend yield= Dividend per share x 100
----------------------------------------
Average share price at the end of the
period
P/E ratio= Average share price at the end of the
period
----------------------------------------
Earnings per share (EPS)
Earnings before interest, taxes, Operating profit/loss + Depreciation,
depreciation and amortization amortization and impairment
(EBITDA) =
Appendix 8
FIVE YEARS IN
FIGURES
2010 2009 2008 2007 2006
OPERATIONS
Net sales MEUR 1069.9 1503.2 3,443.2 4,042.9 4,284.3
of which outside
Finland % 98.1 97.9 95.2 93.9 89.7
Gross capital
expenditures MEUR 10.5 6.4 71.4 67.2 116.9
(does not
include
operating
leases)
Employees, average 7,783 11,271 17,401 19,131 16,651
PROFITABILITY
Operating income
before
depreciation
and amortization
(EBITDA) MEUR 14.1 -16.4 58.5 -16.6 126.6
Operating income MEUR -18.1 -76.5 -20.4 -96.3 43.9
% of net sales % -1.7 -5.1 -0.6 -2.4 1.0
Income before
taxes MEUR 43.7 -117.1 -52.9 -122.8 19.2
% of net sales % 4.1 -7.8 -1.5 -3.0 0.4
Net income MEUR 14.7 -105.0 -65.9 -108.4 12.1
% of net sales % 1.4 -7.0 -1.9 -2.7 0.3
Return on equity
(ROE) % 24.1 -129.9 -38.4 -42.5 4.8
Return on
investment
(ROCE/ROI) % 30.4 -18.9 -3.1 -19.6 9.1
FINANCIAL RATIOS
Current ratio 1.0 1.0 1.1 1.1 1.2
Solvency % 20.8 6.3 14.2 18.1 26.1
Gearing 0.1 5.8 1.8 0.7 0.4
Interest-bearing
liabilities MEUR 103.5 275.4 333.6 237.2 210.3
Interest-bearing
net debt MEUR 12.6 187.5 238.5 144.5 128.0
PER SHARE DATA
Earnings per share
A shares (EPS) EUR 0.45 -3.22 -2.02 -3.37 0.38
Earnings per share
K shares (EPS) EUR - - - -3.37 0.38
Earnings per share
K founders' shares
(EPS)** EUR - -0.32 -0.20 - -
Diluted earnings
per share, A
shares (EPS) EUR 0.42 - - -3.37 0.37
Shareholders'
equity per share EUR 1.39 0.75 3.76 5.72 9.31
Share price at the
end of the year EUR 1.16 0.91 1.21 4.06 9.78
Dividend per share
* EUR 0.00 0.00 0.00 0.00 0.20
Payout ratio * % 0.0 0.0 0.0 0.0 52.3
Dividend yield * % 0.0 0.0 0.0 0.0 2.0
P/E ratio 2.6 -0.3 -0.6 -1.2 25.7
Adjusted weighted
average number of
shares in issue
during the period
A shares 32,939,185 22,071,983 22,017,819 21,601,081 20,761,611
K founders'
shares** - 105,770,000 105,770,000 10,577,000 10,577,000
Adjusted number of
shares in issue
at the end of the
period
A shares 32,939,185 22,352,684 22,017,819 22,017,819 20,962,327
K founders' shares - 105,770,000 105,770,000 10,577,000 10,577,000
* The dividend in 2010 is the proposal of the Board of Directors to the Annual
General Meeting.
** In the transfer of domicile the company K shares were converted into K
founders' shares and their number increased ten-fold while at the same time
reducing their par value to one-tenth of the par value of the A shares. K
founders' shares converted into A shares on July 29, 2010.
Appendix 9
RESTRUCTURING EXPENSES
During the first quarter of 2009, Elcoteq launched a restructuring plan that
applies to whole Group. The plan has contained several elements already in the
year 2009 such as the closure of several plants, organizational changes to aim
for further cost reduction and various assets impairment charges. The
restructuring plan actions continued in the year 2010 with personnel and other
costs reductions as well as with asset impairment charges. The impairments
recognized were based on the fair values of the impaired assets, as determined
in IAS 36.
During the year 2010 Elcoteq has actively sold idle assets and been able to
utilize some earlier idle assets in new customer contracts. This has
consequently led to reversal of impairment as shown in the below table. The
reversals are based on increase in the recoverable amounts of the assets.
The subsidiary in St. Petersburg, Russia which in 2009 was classified under
assets held for sale, has been sold during 2010. The write-down that
was recognized in accordance with IFRS 5 for the subsidiary's net assets, is
included in the restructuring costs.
The Group's restructuring expenses, 11,071 thousand euros, comprise of the
following items:
EUR 1,000 2010 2009
-----------------------------------------------------------------
Personnel expenses 2,464 9,401
Production materials and services -26 1,107
Impairment on property, plant and equipment 4,709 25,109
Reversal of impairment -3,488 -
Impairment of assets classified as held for sale 6,670 -1,418
Other operating expenses 742 2,849
-----------------------------------------------------------------
Restructuring expenses, total 11,071 37,049
Impairments of non-current assets:
EUR 1,000 2010 2009
-----------------------------------------------------------------
Buildings - 1,244
Machinery and equipment 4,668 22,396
Computer software 41 31
Investments in associated companies - 1,438
-----------------------------------------------------------------
Impairments, total 4,709 25,109
Reversal of impairment on non-current assets:
EUR 1,000 2010 2009
-----------------------------------------------------------------
Machinery and equipment -3,488 -
-----------------------------------------------------------------
Reversal of impairment on non-current assets, total -3,488 -
Appendix 10
THE HYBRID BONDS AND THE WARRANTS
Elcoteq has issued two hybrid securities during year 2010, with nominal values
amounting to EUR 50,1 million. The hybrid security issued in January 2010
amounts to EUR 28,6 million and Elcoteq can redeem it after January 2014 at its
consideration. Subordinated notes with carrying values amounting to EUR 105,4
million were repaid as the hybrid capital loan was issued. This January
transaction resulted into a financial income amounting to EUR 79,1 million.
The nominal value of the hybrid securitiy issued in May 2010 is EUR 21.5 million
and Elcoteq can redeem it after December 2012 at its consideration. In this
transaction EUR 21.5 million debentures were exchanged for hybrid securities.
The cumulative interests related to the hybrid securities totaled EUR 3.3
million at the end of December 2010.
In accordance with the terms and conditions of the May 2010 hybrid security an
additional interest in the amount of EUR 1,740,080 will be paid on the Hybrid
Bonds on December 15, 2012.
In accordance with the terms and conditions of the May 2010 exchange offer,
4,350,138 warrants in total were issued, each warrant entitling its holder to
subscribe for one new Elcoteq series A share at a subscription price of EUR
0.40. The exercise period of the warrants will commence on March 16, 2012 and
expire on April 11, 2012. Warrants were listed on NASDAQ OMX Helsinki Ltd on
December 7, 2010.
The instruments are classified as equity as they do not contain any contractual
obligations for the issuer to deliver cash or another financial asset, or to
exchange financial assets or financial liabilities with another entity under
conditions that are potentially unfavorable to the company.
Hybrid securities have presented in equity as Non-controlling interests - Hybrid
capital investors.
The fair value of the warrants, EUR 6.7 million, has been separated from the
carrying amount of the Hybrid bonds to which they relate. The fair value of the
warrants is reported in the Additional paid-in capital.
The amount of the hybrid loans is as follows:
EUR 1,000 2010
-----------------------------------------------------------------------------
Hybrid instrument issued in January 28,650
Hybrid instrument issued in May 21,507
Fair value of the warrants, separated into equity -6,743
Accumulated interest of hybrid securities at the end of December 2010 3,319
-----------------------------------------------------------------------------
In total 46,733
Appendix 11
ASSETS PLEDGED AND CONTINGENT LIABILITIES
EUR 1,000 2010 2009
------------------------------------------------------------------------
BUSINESS MORTGAGES
EUR 100.000.000,00, from which the open liability 73,500 100,000
REAL ESTATE MORTGAGES 27,503 29,267
PLEDGED OTHER RECEIVABLES - 3,000
PLEDGED CASH AND CASH EQUIVALENTS 62,487 56,158
PLEDGED LOAN RECEIVABLES - 81
ON BEHALF OF OTHERS
Guarantees 1,000 1,008
LEASE COMMITMENTS
Operating leases, production machinery (excl. VAT) 474 1,244
Operating leases, real estate (excl. VAT) 11,358 12,262
Operating leases, others (excl. VAT) 423 919
DERIVATIVE CONTRACTS
Currency forward contracts, transaction risk,
hedge accounting not applied
Nominal value, open deals 1,329 43,222
Nominal value, closed deals - 130,136
Fair value 38 38
Currency forward contracts, transaction risk,
hedge accounting applied
Nominal value, open deals 11,118 70,632
Nominal value, closed deals - 11,400
Fair value 212 -74
Currency forward contracts, financial risk
Nominal value - 110,689
Fair value - -239
The derivative contracts are measured using the market prices and the exchange
reference rates of the European Central Bank on the balance sheet date.
Group has pledged part of its assets for syndicated credit facility, however
pledging does not limit operative production or cash activities of the company.
Appendix 12
QUARTERLY FIGURES
INCOME STATEMENT, Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/
MEUR 2010 2010 2010 2010 2009 2009 2009 2009
--------------------------------------------------------------------------------
NET SALES 266.3 250.7 332.3 220.5 265.5 331.7 436.0 470.0
Change in work in progress
and finished goods -9.7 0.0 4.8 4.8 -9.9 -8.2 -4.4 -21.9
Other operating income 16.6 1.0 1.1 0.9 4.2 5.5 1.4 2.3
Operating expenses -259.5 -243.2 -332.6 -228.8 -250.2 -317.2 -428.0 -456.1
Restructuring expenses -1.2 -3.8 -3.9 -2.3 -21.3 -1.7 -0.4 -13.6
Depreciation,
amortization and
impairments -8.3 -7.2 -8.7 -8.1 -11.7 -13.5 -16.0 -18.9
--------------------------------------------------------------------------------
OPERATING PROFIT/LOSS 4.2 -2.5 -6.9 -12.9 -23.4 -3.3 -11.5 -38.3
% of net sales 1.6 -1.0 -2.1 -5.9 -8.8 -1.0 -2.6 -8.2
Financial income and
expenses -4.9 -14.3 5.2 75.9 -12.9 -4.1 -11.9 -11.5
Share of profit/loss of
associated companies 0.0 0.0 0.0 0.0 0.0 -0.1 0.0 0.0
--------------------------------------------------------------------------------
PROFIT/LOSS BEFORE TAXES -0.8 -16.8 -1.7 63.0 -36.4 -7.5 -23.4 -49.9
Income taxes 1.4 -1.4 -4.8 -23.0 2.2 0.7 1.5 3.7
--------------------------------------------------------------------------------
PROFIT/LOSS FOR THE
PERIOD 0.6 -18.2 -6.5 40.0 -34.2 -6.8 -21.8 -46.1
ATTRIBUTABLE TO:
Equity holders of the
parent company 0.2 -18.5 -6.8 39.9 -31.3 -6.3 -21.8 -45.6
Non-controlling interest
-
Hybrid capital investors 1.0 0.9 1.0 0.5 - - - -
Non-controlling interest
-
others -0.6 -0.6 -0.7 -0.4 -2.9 -0.5 0.0 -0.5
--------------------------------------------------------------------------------
0.6 -18.2 -6.5 40.0 -34.2 -6.8 -21.8 -46.1
BALANCE SHEET, Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/
MEUR 2010 2010 2010 2010 2009 2009 2009 2009
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible
assets 26.6 25.9 26.1 26.0 25.4 25.9 26.6 27.4
Property,
plant and equipment 60.8 67.1 76.2 79.1 81.0 110.3 129.8 149.7
Investments 0.7 0.7 0.7 0.7 0.7 2.1 2.2 2.3
Long-term
receivables 15.5 17.4 19.9 22.3 41.9 46.8 45.8 53.0
--------------------------------------------------------------------------------
Non-current assets,
total 103.6 111.1 122.9 128.1 148.9 185.1 204.3 232.4
Current assets
Inventories 91.8 138.1 125.3 102.9 69.4 101.1 113.7 174.2
Current
receivables 189.0 195.9 290.0 202.2 189.9 193.4 221.4 221.9
Cash and cash
equivalents 90.9 84.9 72.5 69.8 87.9 201.0 154.8 98.0
--------------------------------------------------------------------------------
Current assets, total 371.8 418.9 487.8 374.9 347.3 495.5 489.8 494.1
Assets classified as
held for sale - - - 17.2 19.0 21.0 41.0 20.7
--------------------------------------------------------------------------------
ASSETS, TOTAL 475.3 530.0 610.6 520.3 515.3 701.6 735.1 747.1
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent company
Share capital 13.2 13.2 13.2 13.2 13.2 13.0 13.0 13.0
Other
shareholders'
equity 32.6 35.1 42.9 51.1 11.6 43.5 48.7 64.5
--------------------------------------------------------------------------------
Equity attributable to
equity holders 45.7 48.2 56.0 64.3 24.8 56.6 61.8 77.5
of the parent company, total
Non-controlling interest
-
Hybrid capital investors 46.7 43.4 50.2 28.7 - - - -
Non-controlling interest
-
others 6.4 6.8 8.1 8.0 7.8 11.1 12.0 12.8
--------------------------------------------------------------------------------
Total equity 98.9 98.5 114.3 100.9 32.6 67.7 73.7 90.3
Long-term liabilities
Long-term
loans 20.0 28.0 28.1 44.4 109.8 110.1 159.6 158.9
Other long-
term debt 1.8 3.0 3.3 3.5 2.8 2.8 5.7 6.7
--------------------------------------------------------------------------------
Long-term liabilities,
total 21.8 31.1 31.4 47.8 112.5 113.0 165.2 165.6
Current liabilities
Current loans 83.3 79.7 120.4 128.9 165.4 263.8 210.7 225.4
Other current
liabilities 269.6 317.6 340.3 238.0 200.0 250.2 279.0 257.4
Provisions 1.8 3.1 4.2 4.6 4.7 6.9 5.7 8.4
--------------------------------------------------------------------------------
Current liabilities,
total 354.7 400.4 464.9 371.5 370.1 520.9 495.4 491.2
Liabilities classified
as held for sale - - - - - - 0.8 -
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
AND LIABILITIES, TOTAL 475.3 530.0 610.6 520.3 515.3 701.6 735.1 747.1
Personnel on average
during the period 7,000 7,508 8,541 10,024 8,882 9,877 11,693 14,446
Gross capital
expenditures, MEUR 2.3 2.6 2.6 3.0 1.8 1.1 1.5 2.0
ROI/ROCE from 12
preceding months, % 30.4 15.5 16.8 11.4 -18.9 -14.4 -14.4 -11.3
Earnings per share
(EPS), A-shares, EUR 0.01 -0.57 -0.18 1.22 -0.96 -0.19 -0.67 -1.40
Solvency, % 20.8 18.6 18.7 19.4 6.3 9.7 10.0 12.1
Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/
2010 2010 2010 2010 2009 2009 2009 2009
CONSOLIDATED CASH FLOW STATEMENT,
MEUR
--------------------------------------------------------------------------------
Cash flow before change
in working capital 8.3 -14.8 25.9 12.3 20.5 7.0 -6.4 -7.1
Change in working
capital 10.0 67.7 -28.5 -25.3 -25.8 34.1 81.1 -38.8
Financial items and
taxes -8.6 -4.8 -5.5 -7.7 -9.5 -5.0 -3.9 -5.8
--------------------------------------------------------------------------------
Cash flow from operating
activities 9.7 48.2 -8.1 -20.8 -14.8 36.1 70.7 -51.7
Purchases of non-current
assets -7.2 -0.5 -3.3 -2.6 -0.8 -1.1 -0.4 -2.1
Acquisitions - - - - 0.3 - - -
Disposals of non-current
assets 6.9 0.3 16.7 0.1 3.9 7.8 1.8 3.1
--------------------------------------------------------------------------------
Cash flow before
financing activities 9.4 47.9 5.3 -23.3 -11.3 42.7 72.2 -50.7
--------------------------------------------------------------------------------
Hybrid capital loans 0.2 0.6 0.1 27.8 - - - -
Change in current debt -4.7 -31.2 -8.6 -6.5 -100.5 5.2 -12.2 51.4
Repayment of long-term
debt -1.0 0.0 1.6 -20.6 - - - -
Dividends paid - - - - -2.4 - - -
--------------------------------------------------------------------------------
Cash flow from financing
activities -5.5 -30.7 -6.8 0.7 -103.0 5.2 -12.2 51.4
Change in cash and
equivalents 3.8 17.2 -1.5 -22.6 -114.3 48.0 59.9 0.7
Cash and equivalents at
the beginning of the
period 85.0 72.5 69.8 87.9 201.0 154.8 98.0 95.1
Effect of exchange rate
changes on cash held 2.2 -4.7 4.1 4.5 1.1 -1.7 -3.1 2.2
Cash and equivalents at
the end of period 90.9 85.0 72.5 69.8 87.9 201.0 154.8 98.0
BUSINESS SEGMENTS, Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/
MEUR 2010 2010 2010 2010 2009 2009 2009 2009
--------------------------------------------------------------------------------
Net sales
AMS Business
Segment 25.5 25.8 28.8 27.0 25.5 23.1 20.6 20.9
EMS Business
Segment 240.8 224.9 303.6 193.6 240.0 308.7 415.4 449.1
--------------------------------------------------------------------------------
Net sales, total 266.3 250.7 332.3 220.5 265.5 331.7 436.0 470.1
Operating income
AMS Business
Segment 2.9 3.8 3.3 2.4 4.5 4.3 2.7 -0.1
EMS Business
Segment 5.5 -1.4 -3.1 -6.6 -18.5 -1.3 -8.0 -32.3
Group's non-
allocated
expenses/income
-4.0 -4.9 -5.0 -8.3 -9.5 -6.0 -6.0 -5.1
-0.3 0.0 -2.2 -0.5 0.0 -0.3 -0.1 -0.7
--------------------------------------------------------------------------------
Operating income, total 4.2 -2.5 -6.9 -12.9 -23.4 -3.3 -11.6 -38.3
Restructuring expenses recognized in segment's operating income
AMS Business
Segment 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EMS Business
Segment -1.0 -3.8 -3.9 -2.1 -21.3 -1.5 -0.4 -13.0
Group's non-
allocated
expenses/income -0.2 0.0 0.0 -0.2 0.0 -0.2 0.0 -0.6
--------------------------------------------------------------------------------
Restructuring expenses,
total -1.2 -3.8 -3.9 -2.3 -21.3 -1.7 -0.4 -13.6
Financial income and
expenses -4.9 -14.3 5.2 75.9 -12.9 -4.1 -11.9 -11.5
Share of profits and
losses of associates 0.0 0.0 0.0 0.0 0.0 -0.1 0.0 0.0
--------------------------------------------------------------------------------
Income before taxes -0.8 -16.8 -1.7 63.0 -36.4 -7.5 -23.4 -49.9
[HUG#1500920]
Elcoteq SE's Financial Statements Bulletin January - December 2010 (Audited)
| Quelle: Elcoteq