Salcomp Plc Financial Statements Release 10 February 2009 at 8:15 Finnish time
Salcomp Plc Financial Statements Release 2008
NET SALES AND FROFITABILITY WEAKENED - CASH FLOW IMPROVED STRONGLY
October - December 2008:
-Net sales decreased by 17% to EUR 69.6 million (EUR 84.0 million in
10-12/2007).
-Number of chargers delivered decreased by 23% to 62.5 million pieces (81.5
million pieces).
-Market share in mobile phone chargers was some 20% (24%).
-Operating profit weakened by 79% to EUR 1.7 million (EUR 8.3 million).
-Exchange rate differences lowered the operating profit by EUR 1.3 million (EUR
+0.2 million).
-Earnings per share, excluding the deferred tax, decreased to EUR -0.03 (EUR
0.17).
-Cash flow from operating activities, excluding the change in selling of
receivables, was EUR 26.1 million positive (EUR 12.4 million positive).
January - December 2008:
-Net sales decreased by 1% to EUR 283.3 million (EUR 286.2 million in 2007).
-Number of chargers delivered grew by 3% to 271.2 million pieces (262.4 million
pieces).
-Market share in mobile phone chargers was some 22% (23%).
-Operating profit weakened by 53% to EUR 12.1 million (EUR 25.8 million).
-Exchange rate differences lowered the operating profit by EUR 5.4 million (EUR
+0.3 million).
-Earnings per share, excluding the deferred tax, decreased by 82% to EUR 0.10
(EUR 0.54).
-Group's net interest-bearing debt was EUR 3.6 million (EUR 23.3. million).
-Cash flow from operating activities, excluding the change in selling of
receivables, was EUR 39.2 million positive (EUR 24.6 million positive).
Outlook for 2009:
-Salcomp's net sales in 2009 are expected to decrease compared with the 2008
level. Due to the current uncertain market conditions no guidance for the 2009
profitability is given.
Salcomp Plc's Consolidated Financial Statements Release has been prepared in
accordance with the international financial accounting standard IAS34, Interim
Reports. This Financial Statements Release, as relates to January - December
2008 information, is based on the audited Financial Statements.
Markku Hangasjärvi, President and CEO:
”The influence of the global financial crisis on consumer spending, and
therefore on the mobile phone sales, was clearly visible as a decrease in both
our net sales and the number of chargers delivered during the last quarter of
the year. Profitability was weakened by a decline in sales volumes, as well as
exchange rate differences, which remained at a significant level. However, the
cash flow from operating activities developed very positively during the last
quarter of the year due to a decrease in working capital resulting from
rationalization of our functions and the decline in volumes at the latter part
of the year.
In this challenging market situation, we have utilized the flexibility and
agility of our functions by adjusting our production to meet the significant
weakening in the demand, amongst other things by reducing working shifts. As a
result of the adjustment measures, the number of personnel at Salcomp decreased
by over 3,300 people during the last quarter of the year.
Year 2009, and especially the first half of the year, is going to be challenging
in the mobile phone charger market. The mobile phone market is estimated to
decrease by some 10% compared with the 2008 level. Measured by the number of
units, this would mean approximately 1.1 billion mobile phones, and therefore,
mobile phone chargers, to be sold in 2009. We believe that by focusing on our
core business and broadening our customer base in the mobile phone charger
segment, we will be able to cope in this difficult market situation.”
Financial Development in October - December 2008
Salcomp's net sales decreased by 17% in the last quarter of the year to EUR 69.6
million (EUR 84.0 million in 10-12/2007). The number of chargers delivered
decreased by 23% to 62.5 million (81.5 million) pieces.
According to estimates of market research companies and Salcomp, some 305
million mobile phones were sold during the last quarter of the year, which is,
according to Salcomp's estimate, some 8% less than during the last quarter of
2007. Salcomp's market share in mobile phone chargers was approximately 20%
(approximately 24%). The market share was partly weakened by a decrease in the
combined market share of Salcomp's main customers, the top-5 mobile phone
manufacturers, to 77% (83%) of the total mobile phone market.
Operating profit decreased by 79% to EUR 1.7 million (EUR 8.3 million).
Operating profit was weakened by realized and unrealized exchange rate losses of
EUR 1.3 million and a decrease in sales volumes, as well as some EUR 0.8 million
costs related to the production adjustment measures. The operating profit
percentage was 2.5% (9.9%)
The Group's net financial expenses were EUR 2.6 million (EUR 1.1 million). The
financial expenses for the last quarter include EUR 1.4 million (EUR 0.2 million
loss) of losses due to the mostly unrealized exchange rate differences in
intragroup loans. Taxes for the period totaled EUR 1.0 million (EUR 1.3
million). They include a deferred tax of EUR 0.8 million (EUR 0.8 million)
resulting from the parent company's tax-deductible goodwill amortization.
The fourth-quarter net result amounted to EUR -1.8 million (EUR 5.9 million).
Earnings per share were EUR -0.05 (EUR 0.15) and earnings per share, excluding
the deferred tax, EUR -0.03 (EUR 0.17). Basic earnings per share were EUR -0.05
(EUR 0.15).
Cash flow from operating activities was EUR 26.4 million positive (EUR 18.0
million positive), due to a decrease in working capital. Cash flow from
operating activities, excluding the change in selling of receivables, was EUR
26.1 million positive (EUR 12.4 million positive).
FINANCIAL YEAR 2008
Business environment
According to the estimates of market research companies and Salcomp, the mobile
phone market grew by some 6% during 2008, meaning that some 1.21 billion mobile
phones, and therefore, mobile phone chargers, were sold. The market development
was two-fold in 2008: during the first half of the year, the market grew still
by some 15% compared with the corresponding period in 2007, whereas the
development turned down due to the global financial crisis in the second half of
the year. The mobile phone market is estimated to have decreased by some 8%
during the last quarter of the year compared with the corresponding period in
the previous year.
The market share of Salcomp's main customers, the top-5 mobile phone
manufacturers, decreased to some 79% from the approximately 83% of 2007. The
competition tightened further in the mobile phone charger market and new
companies entered the market, amongst others the contract manufacturers BYD and
Flextronics, of which the latter acquired the mobile phone charger business of
the German company Friwo in the spring of 2008. Correspondingly, some companies
with smaller net sales withdrew from the market.
The development of the mobile phone charger business was influenced also by a
clearly slower than estimated decrease in material and component prices during
the first half of the year. Material and component prices were impacted
especially due to a rise in oil and copper prices. In addition, the strong
exchange rate changes influenced the profitability negatively especially during
the second half of the year 2008. Furthermore, the weakening global economy had
a negative effect on the demand for mobile phones and, consequently, mobile
phone chargers, especially during the last quarter of the year.
Net sales
In 2008, the Group's net sales decreased by 1% and were EUR 283.3 million (EUR
286.2 million in 2007). The number of chargers delivered grew by 3% to 271.2
million (262.4 million) pieces. The market share in mobile phone chargers was
some 22% (some 23%) in 2008.
Result
The Group's operating profit weakened by 53% to EUR 12.1 million (EUR 25.8
million). The operating profit includes EUR 0.1 million profit from the sale of
the Kemijärvi real estate in June. In the first half of the year, the operating
profit was weakened by lower gross margin due to changes in product mix, as well
as material costs which decreased more slowly than targeted. The operating
profit was also burdened by higher fixed costs due to the increase in capacity
at the India plant. In addition, the operating profit was weakened by some EUR
0.8 million costs related to the production adjustment measures, as well as by
significant realized and unrealized exchange rate losses of some EUR 5.4
million, mainly during the second half. The Group's operating profit percentage
in 2008 was 4.3% (9.0%).
The Group's net financial expenses were EUR 6.5 million (EUR 3.2 million). The
financial expenses for the period include EUR 3.1 million of losses (EUR 0.7
million profit) due to the mostly unrealized exchange rate differences in
intragroup loans. Taxes for the period totaled EUR 4.5 million (EUR 4.3
million). They include a deferred tax of EUR 3.0 million (EUR 3.0 million)
resulting from the parent company's tax-deductible goodwill amortization.
Salcomp's net result in 2008 totaled EUR 1.1 million (EUR 18.3 million).
Earnings per share were EUR 0.03 (EUR 0.47) and earnings per share, excluding
the deferred tax, amounted to EUR 0.10 (EUR 0.54). Basic earnings per share were
EUR 0.03 (EUR 0.47).
R&D
The Group's R&D expenditure was EUR 5.8 million (EUR 4.8 million) during the
financial year, or 2.0% (1.7%) of net sales. The increase in expenditure was
mainly due to the transfer of the pre-production and its personnel to R&D,
earlier operating under the Operations function. In addition, more R&D personnel
have been recruited in order to meet the new challenges and the tightening
competition more efficiently. At the end of the year, 155 people (112 people)
worked in R&D. R&D focused on developing new products for current and new
customers, and constant improvement in the cost structure of existing products.
Salcomp's extended Product Creation Centre at the Shenzhen plant in China was
inaugurated in August. All Salcomp's R&D and sourcing functions in China have
been centralized in the same building, and the personnel can utilize
state-of-the-art premises and the new EMC measurement chamber, which enables
product testing completely in-house and, therefore, reduces product design cycle
time.
During spring 2009, Salcomp will introduce to the market a new Multiplug charger
platform in which country models are replaced by interchangeable mains plugs.
The mains plug can be easily changed without tools, and this enables the use of
the same charger in different countries. In addition, the Mini charger product
family was renewed during 2008. Both chargers have a fixed cable and mini/micro
USB connector or a customer-specific connector, and they fulfill the highest
level V of the Energy Star requirements. Chargers produced according to the
Multiplug and Mini product platform can be used in mobile phones, Bluetooth
headsets and other handheld electronic devices.
Capital Expenditure
Capital expenditure during the financial year amounted to EUR 5.3 million (EUR
11.3 million). The capital expenditure mainly involved boosting the production
capacity in China, Brazil and India. The most important R&D investments were
renewing and extending the Product Creation Centre in China, as well as the EMC
measurement chamber in the Centre.
Financing
Cash flow from operating activities during the financial year amounted to EUR
31.4 million positive (EUR 34.7 million positive). The cash flow from operating
activities, excluding the change in selling of receivables, was EUR 39.2 million
positive (EUR 24.6 million positive).
The Group's equity ratio at the end of the year was 35.6% (37.7%) and gearing
was 5.7% (34.0%). Net interest-bearing debt totaled EUR 3.6 million (EUR 23.3
million) at the end of the year.
Salcomp raised a capital loan of EUR 3,000,000 on 29 December 2008 in accordance
with chapter 12 of the Finnish Companies Act. The loan will strengthen Salcomp's
capital structure and provide support to its financing arrangements. The loan
carries an interest of 11%, and it will be repaid, at the latest, on 30 July
2012, subject to legal limitations pertaining to capital loans. The loan has
been granted by Nordstjernan AB, the majority shareholder of Salcomp.
Environment and quality
The management of Salcomp's environmental and quality issues is based on the
Group's environmental and quality policies, development programs and guidelines,
as well as its risk management policy. The focus in the management of
environmental and quality issues is to minimize and prevent the effects on the
environment and people.
The total amount of harmful chemicals used in production is small, and no
harmful emissions are caused by the processes.
The Group's production plants are ISO 14001 and ISO 9001 certified. In addition,
Salcomp has the environmental permits required for its operations.
In addition to Salcomp's own quality and environmental control, customers and
authorities regularly conduct quality and environmental audits, and the results
of the audits are used for constant development of the processes.
During 2008, Salcomp's chargers achieved the right to use the international
Energy Star energy-efficiency labeling, and Salcomp also committed to the
European CoC Energy Efficiency Standard. In addition, the calculation principles
of the green house gas emissions were determined according to the Green House
Gas Protocol.
Personnel and management
The number of Group personnel at the end of the year totaled 7,025 (9,722):
4,287 were employed in China, 1,308 in Brazil, 1,363 in India, 67 in Finland and
the other countries. The decrease in the number of personnel was due to the
adjustment measures taken in order to meet the weakened demand in the mobile
phone charger market in the last quarter of the year. Production was adjusted at
all Salcomp plants during the latter part of the year, amongst other things by
reducing working shifts.
In Finland, the activities were enhanced during 2008 by e.g. transferring some
functions from Finland to China, as well as centralizing the Finnish activities
to Salo, Finland. The office in Kemijärvi will be closed by the end of April
2009. In addition, it was decided in January to lay off the Finnish personnel
for four weeks' period, as well as terminate five employments due to the change
in the organization structure and a decrease in the amount of work.
Salcomp's President and CEO during the financial year was Markku Hangasjärvi.
Other Managements Team members were Hannu Hyrsylä (VP, Global Sourcing, member
since 12 August 2008), Pekka Kyyriäinen (VP, Global Operations, member since 1
January 2009), Niilo Oksa (VP, Human Resources), Antero Palo (VP, Sales &
Marketing), Juha Raussi (VP, R&D), Markku Saarikannas (VP, Strategic Planning)
and Jari Saarinen (CFO, member since 25 January 2009).
Shares and shareholders
Salcomp's registered share capital amounts to EUR 9,832,735.12, divided into
38,975,190 fully paid shares. The company has one series of shares, and all the
shares entitle the shareholder to equal rights in the company.
Salcomp's share price fluctuated between EUR 1.45 and EUR 4.17 during the
financial period. The closing price at the end of the year was EUR 1.90 and the
average share price EUR 3.33. Share trading amounted to EUR 40.1 million and
12.2 million shares. According to the book-entry system, Salcomp had 1,134
shareholders at the end of the year. Foreign ownership at the end of the year
was 77.2% and the market value EUR 74.1 million.
In March, Nordstjernan AB announced that its ownership has increased to over
two-thirds of the total number of shares and votes in Salcomp. At the time of
the announcement Nordstjernan held 26,226,196 shares, corresponding to 67.3% of
Salcomp's shares and voting rights. At the end of the year, Nordstjernan's
holding was 75.8% of Salcomp's shares and voting rights.
Based on the decision of the AGM 2007, Salcomp's Board of Directors decided in
May to grant stock options 2007B to the Group's key employees. A total of
657,500 option rights 2007B were distributed to Salcomp's key employees. At the
end of 2008, Salcomp's key personnel held a total of 590,000 option rights 2007A
and 642,500 option rights 2007B. The rest of the stock options, 67,500 option
rights 2007A and 40,000 option rights 2007B, were granted to Salcomp
Manufacturing Oy.
Annual General Meeting
Salcomp Plc's Annual General Meeting was held in Helsinki on 10 April 2008. The
AGM approved the 2007 financial statements and discharged the CEO and Members of
the Board from liability.
In accordance with the Board's proposal, the AGM decided to pay a dividend of
EUR 0.15 per share. The dividend was paid on 22 April 2008.
The AGM decided to leave the composition of the Board of Directors unchanged.
Thus, the members of the Board of Directors, until the conclusion of the 2009
Annual General Meeting, are Chairman Mats Heiman, Vice Chairman Kari Vuorialho
and members Peter Hofvenstam, Andreas Tallberg and Jorma Terentjeff. The AGM
decided that the remuneration for the Board of Directors shall be EUR 40,000 for
the Chairman, EUR 32,000 for the Vice Chairman and EUR 25,000 for the members.
KPMG Oy Ab, Authorized Public Accounting Firm, continues as the company auditor.
The AGM authorized the Board of Directors to decide on the repurchase and
conveyance of the company's own shares up to 3.8 million shares.
Risks and Uncertainties in the Near Future
Salcomp's business involves uncertainty factors that may affect the company's
financial development in the near future. These include the general development
of the mobile phone markets, substantial changes in the purchase prices of
charger components and in the competition in the mobile phone charger markets,
as well as the standardization of mobile phone chargers, including USB-type
chargers. Furthermore, consolidation of the customer base and deterioration in
the financial position of a major customer may have a negative effect on
Salcomp's sales and profitability.
Major changes in exchange rates can be considered as a substantial uncertainty
factor in the short term, especially the exchange rate of the US dollar in
relation to the euro and to currencies in those countries in which Salcomp has
production. In addition, the impact of the weakening global economy on the
mobile phone market and on the stability of the financial market, as well as
accessibility of financing, have influence on Salcomp's business.
Risks are managed to the extent that the company has influence over them.
Events after the financial year
There are no events after the balance sheet date which would have influence on
the Financial Statements.
The Board's Proposal for Profit Distribution
The Board of Directors has adopted dividend principles whereby the Board intends
to propose annually to the General Meeting of Shareholders that no more than
one-third of the average long-term result be distributed as dividends, provided
that the growth requirements stated in the company strategy are not jeopardized.
The amount of future dividend, if any, will be subject to the company's future
result, its financial position, cash flow, working capital needs, capital
expenditure, terms and conditions of financial agreements and covenants among
other factors.
The Board will propose to the Annual General Meeting of Shareholders that no
dividend for 2008 will be distributed.
Outlook for 2009
According to the estimates published by some of Salcomp's key customers and by
the various market research companies, the mobile phone market is expected to
decrease by approximately 10% during 2009, compared with 2008. Measured by the
number of units, this would mean approximately 1.1 billion mobile phones, and
therefore, mobile phone chargers, to be sold in 2009. According to the
estimates, the decrease in the sales volumes of the mobile phones chargers will
be stronger in the first half of the year than in the second half of the year.
Salcomp's net sales in 2009 are expected to decrease compared with the 2008
level. Due to the current uncertain market conditions no guidance for the 2009
profitability is given.
Helsinki, 10 February 2009
Board of Directors
Further information:
Markku Hangasjärvi, President and CEO, tel. +358 40 7310 114
Jari Saarinen, CFO, tel. +358 40 500 4206
The briefing for analysts and media will be held on 10 February 2009 at 12:00
Finnish time at Hotel Scandic Simonkenttä, Simonkatu 9, Helsinki.
Salcomp's Annual Report 2008 will be published in March during week 12 and the
Interim Report for January-March on 8 May 2009.
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | |
| (EUR 1 000) | | | |
--------------------------------------------------------------------------------
| | 1-12/2008 | 1-12/2007 | Change % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 283 250 | 286 231 | -1.0% |
--------------------------------------------------------------------------------
| Cost of sales | -253 832 | -244 785 | 3.7% |
--------------------------------------------------------------------------------
| Gross margin | 29 418 | 41 446 | -29.0% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Other operating income | 220 | 482 | -54.4% |
--------------------------------------------------------------------------------
| Sales and marketing expenses | -2 455 | -2 471 | -0.6% |
--------------------------------------------------------------------------------
| Administrative expenses | -9 314 | -8 701 | 7.0% |
--------------------------------------------------------------------------------
| Research and development | -5 754 | -4 845 | 18.8% |
| expenses | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -23 | -117 | -80.3% |
--------------------------------------------------------------------------------
| Operating profit | 12 092 | 25 794 | -53.1% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Financial income | 441 | 958 | -54.0% |
--------------------------------------------------------------------------------
| Financial expenses | -6 962 | -4 203 | 65.6% |
--------------------------------------------------------------------------------
| Profit before tax | 5 571 | 22 549 | -75.3% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Income tax expenses | -4 497 | -4 281 | 5.0% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Profit for the period | 1 074 | 18 268 | -94.1% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0.03 | 0.47 | -94.1% |
--------------------------------------------------------------------------------
| Diluted earnings per share, | 0.03 | 0.47 | -94.1% |
| EUR | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | |
| (EUR 1 000) | | | |
--------------------------------------------------------------------------------
| | 10-12/ | 10-12/ | Change |
| | 2008 | 2007 | % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 69 548 | 84 005 | -17.2% |
--------------------------------------------------------------------------------
| Cost of sales | -63 034 | -71 515 | -11.9% |
--------------------------------------------------------------------------------
| Gross margin | 6 514 | 12 490 | -47.8% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Other operating income | 5 | 86 | -94.2% |
--------------------------------------------------------------------------------
| Sales and marketing expenses | -669 | -655 | 2.1% |
--------------------------------------------------------------------------------
| Administrative expenses | -2 572 | -2 221 | 15.8% |
--------------------------------------------------------------------------------
| Research and development | -1 529 | -1 270 | 20.4% |
| expenses | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -23 | -106 | -78.3% |
--------------------------------------------------------------------------------
| Operating profit | 1 726 | 8 324 | -79.3% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Financial income | 51 | 0 | |
--------------------------------------------------------------------------------
| Financial expenses | -2 617 | -1 133 | 131.0% |
--------------------------------------------------------------------------------
| Profit before tax | -840 | 7 191 | -111.7% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Income tax expenses | -940 | -1 301 | -27.7% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Profit for the period | -1 780 | 5 890 | -130.2% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | -0.05 | 0.15 | -130.4% |
--------------------------------------------------------------------------------
| Diluted earnings per share, EUR | -0.05 | 0.15 | -130.4% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | | | |
| (EUR 1 000) | | | |
--------------------------------------------------------------------------------
| | 31.12.2008 | 31.12.2007 | Change % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and | 22 559 | 24 808 | -9.1% |
| equipment | | | |
--------------------------------------------------------------------------------
| Goodwill | 66 412 | 66 412 | 0.0% |
--------------------------------------------------------------------------------
| Other intangible assets | 397 | 481 | -17.5% |
--------------------------------------------------------------------------------
| Deferred tax assets | 3 057 | 3 184 | -4.0% |
--------------------------------------------------------------------------------
| | 92 425 | 94 885 | -2.6% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 29 531 | 24 114 | 22.5% |
--------------------------------------------------------------------------------
| Trade and other receivables | 30 637 | 48 475 | -36.8% |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 26 590 | 14 611 | 82.0% |
--------------------------------------------------------------------------------
| | 86 758 | 87 200 | -0.5% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total assets | 179 183 | 182 085 | -1.6% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Share capital | 9 833 | 9 833 | 0.0% |
--------------------------------------------------------------------------------
| Invested unrestricted equity | 22 035 | 22 035 | 0.0% |
--------------------------------------------------------------------------------
| Retained earnings | 31 911 | 36 773 | -13.2% |
--------------------------------------------------------------------------------
| | 63 779 | 68 641 | -7.1% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 14 861 | 12 075 | 23.1% |
--------------------------------------------------------------------------------
| Capital loan | 3 000 | 0 | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 15 329 | 28 542 | -46.3% |
--------------------------------------------------------------------------------
| Provisions | 0 | 40 | -100.0% |
--------------------------------------------------------------------------------
| | 33 190 | 40 657 | -18.4% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 70 309 | 63 382 | 10.9% |
--------------------------------------------------------------------------------
| Interest-bearing current | 11 905 | 9 405 | 26.6% |
| liabilities | | | |
--------------------------------------------------------------------------------
| | 82 214 | 72 787 | 13.0% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total equity and liabilities | 179 183 | 182 085 | -1.6% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| (EUR 1 000) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to equity holders of the parent |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | Share | Share | Premium | Invest | Trans- | Re-tai | Total |
| | | capita | issue | fund | -ed | lation | ned | equity |
| | | l | | | unres- | diffe- | ear-ni | |
| | | | | | tricte | rences | ngs | |
| | | | | | d | | | |
| | | | | | equity | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at | 9 833 | 0 | 22 035 | 0 | 226 | 20 887 | 52 981 |
| January 1, | | | | | | | |
| 2007 | | | | | | | |
--------------------------------------------------------------------------------
| | Translati | 0 | 0 | 0 | 0 | -445 | 0 | -445 |
| | on | | | | | | | |
| | differenc | | | | | | | |
| | es | | | | | | | |
--------------------------------------------------------------------------------
| | Profit | 0 | 0 | 0 | 0 | 0 | 18 268 | 18 268 |
| | for | | | | | | | |
| | the | | | | | | | |
| | period | | | | | | | |
--------------------------------------------------------------------------------
| | Total | 0 | 0 | 0 | 0 | -445 | 18 268 | 17 823 |
| | recognize | | | | | | | |
| | d income | | | | | | | |
| | and | | | | | | | |
| | expense | | | | | | | |
| | for the | | | | | | | |
| | period | | | | | | | |
--------------------------------------------------------------------------------
| | Option | 0 | 0 | 0 | 0 | 0 | 176 | 176 |
| | costs | | | | | | | |
--------------------------------------------------------------------------------
| | Transfer | 0 | 0 | -22 035 | 22 035 | 0 | 0 | 0 |
| | from | | | | | | | |
| | premium | | | | | | | |
| | fund to | | | | | | | |
| | invested | | | | | | | |
| | unrestric | | | | | | | |
| | ted | | | | | | | |
| | equity | | | | | | | |
--------------------------------------------------------------------------------
| | Dividends | 0 | 0 | 0 | 0 | 0 | -2 339 | -2 339 |
--------------------------------------------------------------------------------
| Equity at | 9 833 | 0 | 0 | 22 035 | -219 | 36 992 | 68 641 |
| December 31, | | | | | | | |
| 2007 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at | 9 833 | 0 | 0 | 22 035 | -219 | 36 992 | 68 641 |
| January 1, | | | | | | | |
| 2008 | | | | | | | |
--------------------------------------------------------------------------------
| | Translati | 0 | 0 | 0 | 0 | -565 | 0 | -565 |
| | on | | | | | | | |
| | differenc | | | | | | | |
| | es | | | | | | | |
--------------------------------------------------------------------------------
| | Profit | 0 | 0 | 0 | 0 | 0 | 1 073 | 1 073 |
| | for | | | | | | | |
| | the | | | | | | | |
| | period | | | | | | | |
--------------------------------------------------------------------------------
| | Total | 0 | 0 | 0 | 0 | -565 | 1 073 | 508 |
| | recognize | | | | | | | |
| | d income | | | | | | | |
| | and | | | | | | | |
| | expense | | | | | | | |
| | for the | | | | | | | |
| | period | | | | | | | |
--------------------------------------------------------------------------------
| | Option | 0 | 0 | 0 | 0 | 0 | 476 | 476 |
| | costs | | | | | | | |
--------------------------------------------------------------------------------
| | Dividends | 0 | 0 | 0 | 0 | 0 | -5 846 | -5 846 |
--------------------------------------------------------------------------------
| Equity at | 9 833 | 0 | 0 | 22 035 | -784 | 32 695 | 63 779 |
| December 31, | | | | | | | |
| 2008 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | | | |
| (EUR 1 000) | | | |
--------------------------------------------------------------------------------
| | 1-12/ | 1-12/ | Change |
| | 2008 | 2007 | % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before change in | 17 664 | 30 690 | -42.4% |
| working capital | | | |
--------------------------------------------------------------------------------
| Change in working capital | 16 785 | 7 769* | 116.1% |
--------------------------------------------------------------------------------
| Financial items and taxes | -3 028 | -3 723 | -18.7% |
--------------------------------------------------------------------------------
| Net cash flow from operating | 31 421 | 34 736 | -9.5% |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Purchases | -5 311 | -11 053 | -51.9% |
--------------------------------------------------------------------------------
| Sales | 98 | 86 | 14.0% |
--------------------------------------------------------------------------------
| Cash flow from investing | -5 213 | -10 967 | -52.5% |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash flow before financing | 26 208 | 23 769 | 10.3% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Withdrawal of borrowings | 3 000 | 5 000 | -40.0% |
--------------------------------------------------------------------------------
| Repayment of borrowings | -10 964 | -19 611 | -44.1% |
--------------------------------------------------------------------------------
| Dividends | -5 846 | -2 339 | 149.9% |
--------------------------------------------------------------------------------
| Net cash flow from financing | -13 810 | -16 950 | -18.5% |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation correction to | -419 | -53* | 690.6% |
| cash and cash equivalents | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Change in cash and cash | 11 979 | 6 766 | 77.0% |
| equivalents | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 14 611 | 7 845 | 86.2% |
| at the beginning of the period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 26 590 | 14 611 | 82.0% |
| at the end of the period | | | |
--------------------------------------------------------------------------------
*Presentation of the translation difference in the cash flow statement has been
adjusted during the financial period and due to this, the comparison figures in
the cash flow statement have been updated accordingly.
--------------------------------------------------------------------------------
| KEY FIGURES | | | |
--------------------------------------------------------------------------------
| | 1-12/ | 1-12/ | Change |
| | 2008 | 2007 | % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sold chargers, Mpcs | 271.2 | 262.4 | 3.4% |
--------------------------------------------------------------------------------
| Average sales price, EUR | 1.04 | 1.09 | -4.3% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, MEUR | 283.3 | 286.2 | -1.0% |
--------------------------------------------------------------------------------
| EBITDA, MEUR | 17.3 | 30.6 | -43.5% |
--------------------------------------------------------------------------------
| EBITDA%, % | 6.1% | 10.7% | |
--------------------------------------------------------------------------------
| Operating profit, MEUR | 12.1 | 25.8 | -53.1% |
--------------------------------------------------------------------------------
| Operating profit percentage, | 4.3% | 9.0% | |
| % | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per share, | 0.03 | 0.47 | -94.1% |
| EUR | | | |
--------------------------------------------------------------------------------
| Diluted earnings per share, | 0.03 | 0.47 | -94.1% |
| EUR | | | |
--------------------------------------------------------------------------------
| Earnings per share excluding | 0.10 | 0.54 | -81.5% |
| deferred tax, EUR | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.64 | 1.76 | -6.8% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, % | 1.6% | 30.0% | |
--------------------------------------------------------------------------------
| Return on capital employed, | 12.1% | 25.3% | |
| % | | | |
--------------------------------------------------------------------------------
| Return on net assets, % | 51.1% | 72.3% | |
--------------------------------------------------------------------------------
| Equity ratio, % | 35.6% | 37.7% | |
--------------------------------------------------------------------------------
| Gearing, % | 5.7% | 34.0% | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure, MEUR | 5.3 | 11.3 | -53.1% |
--------------------------------------------------------------------------------
| Capital expenditure, % of | 1.9% | 3.9% | |
| net sales | | | |
--------------------------------------------------------------------------------
| Personnel on average | 9 872 | 8 622 | 14.5% |
--------------------------------------------------------------------------------
| Personnel at end of period | 7 025 | 9 722 | -27.7% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares on average | 38 975 190 | 38 975 190 | |
--------------------------------------------------------------------------------
| Number of shares at the end | 38 975 190 | 38 975 190 | |
| of period | | | |
--------------------------------------------------------------------------------
| Diluted number of shares on | 38 995 089 | 39 057 819 | |
| average | | | |
--------------------------------------------------------------------------------
| Highest share price, EUR | 4.17 | 5.03 | |
--------------------------------------------------------------------------------
| Lowest share price, EUR | 1.45 | 2.63 | |
--------------------------------------------------------------------------------
| Average share price, EUR | 3.33 | 3.76 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Traded shares, Mpcs | 12.2 | 19.0 | |
--------------------------------------------------------------------------------
| Traded shares, MEUR | 40.1 | 72.1 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES | | | |
| (EUR 1 000) | | | |
--------------------------------------------------------------------------------
| | 1-12/ | 1-12/ | Change |
| | 2008 | 2007 | % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| For own debt | | | |
--------------------------------------------------------------------------------
| | Company and real estate | 170 000 | 170 000 | 0.0% |
| | mortgages | | | |
--------------------------------------------------------------------------------
| | Others | 5 | 209 | -97.6% |
--------------------------------------------------------------------------------
| Leasing and rental liabilities | 10 044 | 8 311 | 20.9% |
--------------------------------------------------------------------------------
| | 180 049 | 178 520 | 0.9% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY INFORMATION |
--------------------------------------------------------------------------------
| | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ |
| | 08 | 08 | 08 | 08 | 07 | 07 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sold | 62 532 | 73 584 | 71 598 | 63 451 | 81 534 | 61 827 |
| chargers, | | | | | | |
| kpcs | | | | | | |
--------------------------------------------------------------------------------
| Net sales, | 69 548 | 74 755 | 72 113 | 66 834 | 84 005 | 70 478 |
| kEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating | 1 726 | 2 413 | 3 168 | 4 785 | 8 324 | 6 300 |
| profit, kEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating | 2.5% | 3.2% | 4.4% | 7.2% | 9.9% | 8.9% |
| profit | | | | | | |
| percentage, % | | | | | | |
--------------------------------------------------------------------------------
| Average sales | 1.11 | 1.02 | 1.01 | 1.05 | 1.03 | 1.14 |
| price, EUR | | | | | | |
--------------------------------------------------------------------------------
OPTION RIGHTS
During the financial year 2007, the General Meeting of Shareholders established
an option program with totally 2,047,500 option rights that entitles to
subscribe the same amount of new shares of the company. The option program is
divided to symbols 2007A, 2007B and 2007C. The Board of Directors has, during
the financial year, granted option rights 2007B to the Group key personnel
totaling 657,500 pieces. The share based incentives are conditional. The vesting
conditions (relating to symbols 2007A and 2007B) are based on that the total
shareholder return is at least 8% per annum. Options are lost when a person is
leaving the company before the settlement period begins. The Board of Directors
can decide in these cases that the stock option owner is entitled to keep the
options or a part of them. The fair value has been determined by using the
Cox-Ross-Rubinstein binomial model.
--------------------------------------------------------------------------------
| Symbol | 2007A | 2007B | 2007C |
--------------------------------------------------------------------------------
| Number of | 657 500 | 682 500 | 707 500 |
| options | | | |
--------------------------------------------------------------------------------
| Vesting | 1.4.2007-31.3.2010 | 1.4.2008-31.3.2011 | 1.4.2009-31.3.2012 |
| period | | | |
--------------------------------------------------------------------------------
| Options | 610 000 | 0 | 0 |
| granted | | | |
| before the | | | |
| current | | | |
| financial | | | |
| year | | | |
--------------------------------------------------------------------------------
| Options | 0 | 657 500 | 0 |
| granted | | | |
| during the | | | |
| current | | | |
| financial | | | |
| year | | | |
--------------------------------------------------------------------------------
| Options | -20 000 | -15 000 | 0 |
| forfeited | | | |
| during the | | | |
| current | | | |
| financial | | | |
| year | | | |
--------------------------------------------------------------------------------
| Settlement | 1 | 1 | 1 |
| (shares / | | | |
| option) | | | |
--------------------------------------------------------------------------------
| Settlement | 1.4.2010-31.3.2012 | 1.4.2011-31.3.2013 | 1.4.2012-31.3.2014 |
| period | | | |
--------------------------------------------------------------------------------
| Grant date | 02.05.07 | 07.05.08 | |
--------------------------------------------------------------------------------
| Exercise | 2.88 | 3.40 | |
| price | | | |
--------------------------------------------------------------------------------
| Share price | 3.51 | 3.79 | |
| at grant date | | | |
--------------------------------------------------------------------------------
| The fair | 1.44 | 1.44 | |
| value of | | | |
| option at | | | |
| grant date | | | |
--------------------------------------------------------------------------------
CALCULATION OF FINANCIAL RATIOS
Average personnel: Average of the amount of personnel at end of each month
Return on equity (%) = Profit for the period x 100 : Equity on average
Return on capital employed (%) = (Profit before taxes + interest charges and
other financial costs) x 100 : (Balance sheet total less interest-free debt (on
average))
Return on net assets (%) = Operating profit x 100 : (Fixed assets less goodwill
and deferred tax assets + inventory + short-term receivables less short-term
interest-free debt on average)
Equity ratio (%) = Equity x 100 : Balance sheet total less received advance
payments
Gearing (%) = (Interest-bearing debt less cash and cash equivalents) x 100 :
Equity
Earnings per share = Profit for the period: Weighted average number of shares
outstanding
Equity per share = Equity : number of shares outstanding at the end of period
Diluted earnings per share = Profit for the period : Weighted average number of
shares outstanding, adjusted for the share issue
