Exel Composites Plc Interim Report for January 1 - March 31, 2009
EXEL COMPOSITES PLC INTERIM REPORT 7 May 2009 at 9.00 a.m. 1 (13)
EXEL COMPOSITES PLC INTERIM REPORT FOR JANUARY 1 - MARCH 31, 2009
January - March 2009 highlights and outlook
- Net sales of continuing operations decreased to EUR 18.5 (20.9) million in the
first quarter of 2009 and were 11.4 per cent lower than for the corresponding
period in 2008
- Operating profit was EUR 2.0 million compared to EUR 2.7 million in the first
quarter of 2009, representing 10.8 (12.9) per cent of net sales
- Net operative cash flow was positive at EUR +3.0 (-0.2) million
- Fully diluted earnings per share were EUR 0.14 (-0.01)
- Net gearing continued to decrease from 123.9 per cent (year end 2008) to 91.4
per cent
- Exel Sports Brands' Floorball business transferred to Cape Nordic in March
2009
- Exel Sports Brands will be reported as discontinued operations as of this
interim report
- Due to the market uncertainty and poor visibility Exel will not give any
profit guidance
Vesa Korpimies, President and CEO:
“During the first quarter 2009, the impact of the financial crisis has continued
to escalate, affecting also market demand in the pultrusion business negatively,
especially in the building and construction and transportation segments. To
address this, actions have been taken to adapt Exel Composites' cost base. We
maintain a strong emphasis on operative working capital reduction to safeguard
cash flow and improve financial position.
The restructuring of the Group has now been completed. Exel Sports Brands'
Outdoor business was sold to ESB Sports in June 2008 and the remaining Floorball
business was sold to Cape Nordic in March 2009. From this interim report
onwards, Exel Composites will report with one segment, Exel Composites. The
Annual General Meeting held on 16 April 2009 resolved to change the Company name
to Exel Composites Plc in English and Exel Composites Oyj in Finnish. The new
name was entered into the Trade Register on 23 April 2009.
The net sales of the Group decreased by 11.4 per cent to EUR 18.5 (20.9)
million. The operating profit decreased by 25.7 per cent to EUR 2.0 (2.7)
million. However, the strong focus on cash flow generation was productive.
Operative cash flow increased to EUR 3.0 (-0.1) million.
By the actions taken we can concentrate on developing our core business Exel
Composites. However, market demand is uncertain and we are preparing for the
weakening trend to continue. Further actions will be taken to control costs and
streamline the operating working capital and to amortize debt.
We will have a strong focus on sales to current and new customers. We will also
seek synergies between production sites to ensure critical mass in sales.”
CONSOLIDATED KEY FIGURES, EUR million
(unaudited)
--------------------------------------------------------------------------------
| | 1.1. - | 1.1. - | Change, % | 1.1. - |
| | 31.3. | 31.3. | | 31.12. |
| | 2009 | 2008 | | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, continuing | 18.5 | 20.9 | -11.4 | 84.9 |
| operations | | | | |
--------------------------------------------------------------------------------
| Operating profit, | 2.0 | 2.7 | -25.7 | 8.6 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| % of net sales | 10.8 | 12.9 | | 10.1 |
--------------------------------------------------------------------------------
| Profit for the period, | 1.7 | -0.1 | 32.8 | -3.0 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ equity | 18.7 | 23.1 | -19.1 | 16.7 |
--------------------------------------------------------------------------------
| Net interest-bearing | 17.1 | 28.4 | -40.0 | 20.7 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Capital employed | 43.3 | 55.9 | -22.7 | 45.4 |
--------------------------------------------------------------------------------
| Return on equity, % | 37.5 | -1.6 | | -14.7 |
--------------------------------------------------------------------------------
| Return on capital | 24.0 | 2.6 | | 0.0 |
| employed, % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 32.0 | 30.9 | | 28.2 |
--------------------------------------------------------------------------------
| Net gearing, % | 91.4 | 123.3 | | 123.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.14 | -0.01 | 0.0 | 0.34 |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | 0.14 | -0.01 | 0.0 | -0.25 |
| diluted | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.57 | 1.98 | -20.7 | 1.40 |
--------------------------------------------------------------------------------
IFRS REPORTING
This interim report has been prepared in accordance with the recognition and
measurement principles of IFRS, which are the same as in the 2008 financial
statements, but not all IAS 34 requirements have been observed. The Company has
adopted the following mandatory IAS and IFRS standards that entered into force
on 1 January 2009:
- IFRS 8 Operating segments. The standard replaces IAS 14 Segment Reporting.
From this interim onwards, Exel Composites will be reporting only with one
segment, Exel Composites. Exel Sports Brands segment will be reported as
discontinued operations.
- IAS 1 Presentation of Financial Statements. The standard separates owner and
non-owner changes in equity. The Group applies this standard as of this interim
report.-IAS 23 Borrowing costs. The revised standard requires capitalization of
borrowing costs that are directly attributable to the acquisition, construction
or production of a qualifying asset. The Group applies the standard as of this
interim report.
- IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial
Statements - Puttable Financial Instruments and Obligations Arising on
Liquidation. According to the revised standard requires entities to classify
puttable financial instruments and instruments, or components of instruments
that impose on the entity an obligation to deliver to another party a pro rata
share of net assets of the entity only on liquidation as equity, provided the
financial instruments have particular features and meet specific conditions. The
Group applies the standard as of this interim report.
FINANCIAL PERFORMANCE
Exel's consolidated net sales for the first quarter in 2009 decreased by 11.4
per cent to EUR 18.5 (20.9) million compared to the corresponding period in
2008. The Company is faced with weaker market conditions especially in the
building and construction and transportation segments. The telecommunication
segment has continued its strong performance. Composite profile demand in the
European markets has been stronger than in Asia/Pacific.
Exel Sports Brands' Floorball business was sold to Cape Nordic in March 2009.
Cape Nordic took over the whole Floorball business, acquired the inventory and
order backlog related to the Floorball business through an asset deal. The
transaction also included a long-term licensing agreement related to the use of
the Exel brand together with other brands related to the floorball business. The
transaction is not expected to have a material impact on the result of the Exel
Group.
Exel's operating profit for the first quarter in 2009 decreased to EUR 2.0 (2.7)
million, compared to the corresponding period last year. Operating profit as a
percentage of net sales was 10.8 (12.9) per cent. The reduction in sales and
increasing price competition had a negative impact on the operating profit of
the Group.
The comprehensive rationalization program of the Exel Group has restored
profitability to satisfactory levels by reducing operational costs and
streamlining the capital employed.
The Group's net financial expenses in the first quarter of 2009 were EUR +0.1
(-1.1) million. The main reasons for the improvement were lower interest rates,
lower debt and favorable currency exchange rates, especially the Australian
dollar. The Group's profit before taxes was EUR 2.1 (1.6) million and profit
after taxes EUR 1.5 (1.1) million.
Earnings per share were EUR 0.13 from continuing operations and EUR 0.01 from
discontinued operations. Return on investment was 24.0 (2.6) per cent.
BALANCE SHEET AND FINANCIAL POSITION
Reinforced measures were taken to reduce operative working capital. Cash flow
from business operations was positive at EUR +3.0 (-0.2) million.
Capital expenditure was financed with cash flow from business operations. At the
end of the financial year the Group's liquid assets stood at EUR 7.5 (4.4)
million.
Cash flow before financing but after capital expenditure and divestment of the
Floorball business amounted to EUR +3.6 (-0.5) million. The Company paid no
dividend for the financial period that ended on 31 December 2008.
The Group's consolidated total assets at the end of the financial year were EUR
58.4 (74.7) million.
Equity at the end of the period under review was EUR 18.7 (23.1) million and
equity ratio 32.0 (30.9) per cent. Interest-bearing liabilities amounted to EUR
24.6 (32.9) million, of which short-term liabilities accounted for EUR 4.4
(13.9) million.
Net interest-bearing liabilities were EUR 17.1 (28.4) million, and the net
gearing ratio was 91.4 (123.3) per cent.
CAPITAL EXPENDITURE AND DEPRECIATION
The capital expenditure on fixed assets during the review period amounted to EUR
0.4 (0.3) million.
Total depreciation of non-current assets during the period under review amounted
to EUR 0.8 (0.9) million.
PERSONNEL
The number of Exel Group employees on 31 March 2009 was 447 (567), of whom 207
(230) worked in Finland and 241 (337) in other countries. The average number of
personnel during the reporting period was 461 (570). The decrease both in
Finland and abroad is due to the divestment of Exel Sports Brands' Outdoor and
Floorball businesses and reduction of personnel in the Finnish, British and
Chinese units.
SHARES AND SHARE CAPITAL
At the end of March 2009, Exel's share capital was EUR 2,141,431.74 and the
number of shares was 11,896,843. There were no changes in the share capital
during the review period.
Based on the closing price on 31 March 2009, the market capitalization totaled
EUR 40.0 (124.9) million. During the reporting period 1,391,068 (385,328) shares
were traded, accounting for 11.7 (3.2) per cent of the average number of shares
outstanding.
The highest share quotation was EUR 3.35 (12.40) and the lowest EUR 2.37 (9.50).
The share price closed at EUR 3.35 (10.50). The average share price during the
review period was EUR 2.66 (10.68).
Own shares
Exel Composites did not hold any own shares at the end of the period under
review.
SHAREHOLDERS
Exel had a total of 1,723 shareholders on 31 March 2009.
Exel Composites received no flagging notifications during the period under
review.
EVENTS AFTER THE REVIEW PERIOD
The Annual General Meeting of Exel Plc was held on 16 April 2009. The financial
accounts of the Group were approved and the members of the Board of Directors
and the President were discharged from their liabilities for the financial year
2008. The AGM approved the Board's proposal not to distribute a dividend for the
financial period that ended on 31 December 2008. The AGM decided to amend
Section 1 of the Articles of Association regarding the Company Name and Domicile
and changed the Company name to Exel Composites Oyj in Finnish and Exel
Composites Plc in English. The AGM also decided to amend Section 10 of the
Articles of Association regarding Invitations to Meetings to comply with the
Finnish Corporate Governance Code for Listed Companies.
The AGM also authorized Exel's Board of Directors to acquire the Company's own
shares by using unrestricted equity. The maximum amount to be acquired is
600,000 shares. The AGM also resolved to issue a maximum of 2,400,000 new shares
and convey a maximum of 600,000 own shares. By virtue of the authorization, the
Board of Directors also has the right to grant option rights, convertible bonds
and/or special rights refereed to in Chapter 10, Section 1 of the Companies Act.
The authorizations are valid until 16 April 2010.
The AGM confirmed the number of members of the Board of Directors as five and
elected a new Board. Peter Hofvenstam, Göran Jönsson, Vesa Kainu and Heikki
Mairinoja were re-elected and Reima Kerttula was elected as new member to the
Board. At the organizational meeting of the Board of Directors held after the
AGM, the Board of Directors elected Peter Hofvenstam as Chairman.
MAJOR NEAR-TERM RISKS AND UNCERTAINTIES
The most significant near-term business risks are related to market demand in
certain market segments of Exel Composites, such as building and construction,
telecommunication and wind energy. Raw material price, energy cost and other
cost increases may put pressure on profitability. Currency rate changes,
especially the weakening AUD and strengthening USD, and further intensified
price competition may also have a negative effect on the result. The poor
availability of bank financing may weaken the demand in Exel Composites' market
and may increase the credit loss risks and have an effect on the Exel Group.
OUTLOOK
The pultrusion market is affected by the worldwide business slow-down. A
weakened demand has been observed, especially in the building and construction
and transportation segments.
Due to the volatile situation and poor visibility of the market development, the
Group has developed contingency plans and comprehensive cost and capital
reduction programs to protect profitability, to manage cash flow and to reduce
net debt.
Due to the market uncertainty and poor visibility Exel will not give any profit
guidance.
NEWS CONFERENCE
A news conference for investment analysts and the press will be held today 7 May
2009 at 12.30 pm in the Pavilion Cabinet of Scandic Hotel Simonkenttä at
Simonkatu 9, Helsinki, Finland.
Vantaa, 7 May 2009
EXEL COMPOSITES PLC Vesa Korpimies
Board of Directors President and CEO
Further information:
Vesa Korpimies, President and CEO, Exel Composites Plc, tel. +358 50 590 6754,
or email vesa.korpimies@exel.net
Ilkka Silvanto, CFO, Exel Composites Plc, tel. +358 50 598 9553, or email
ilkka.silvanto@exel.fi
It should be noted that certain statements herein which are not historical
facts, including, without limitation, those regarding expectations for general
economic development and the market situation, expectations for company growth,
development and profitability, and statements preceded by “expects” or
“estimates” or similar expressions, are forward-looking statements. These
statements are based on current decisions and plans and currently known facts.
They involve risks and uncertainties which may cause the actual results to
materially differ from the results currently expected by the company.
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main news media
www.exelcomposites.com
EXEL COMPOSITES IN BRIEF
Exel Composites is a technology company which designs, manufactures and markets
composite profiles and tubes for industrial applications. The Group is the
leading composite profile manufacturer in the world and concentrates on growing
niche segments.
The core of the operations is based on own, internally developed composite
technology, product range based on it and a strong market position in selected
segments with a strong quality and brand image. Profitable growth is pursued by
a relentless search for new applications and development in co-operation with
customers. The personnel's expertise and high level of technology play a major
role in Exel Composites' operations.
Exel Composites Plc share is listed in the Small Cap segment of NASDAQ OMX
Helsinki Ltd.
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change, % | 1.1. - |
| | 31.3. | 31.3. | | 31.12. |
| | 2009 | 2008 | | 2008 |
--------------------------------------------------------------------------------
| Continuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Net sales | 18,530 | 20,907 | -11.4 | 84,921 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Materials and | -7,347 | -8,187 | 10.3 | -34,576 |
| services | | | | |
--------------------------------------------------------------------------------
| Employee benefit | -4,827 | -5,722 | 15.6 | -20,650 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -820 | -901 | 9.0 | -3,967 |
| impairment | | | | |
--------------------------------------------------------------------------------
| Other operating | -3,836 | -3,413 | -12.4 | -17,417 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Other operating | 300 | 10 | 2.900.0 | 281 |
| income | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 2,001 | 2,694 | -25.7 | 8,593 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial | 53 | -1,137 | 104.7 | -3,003 |
| items | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before tax | 2,054 | 1,558 | 31.8 | 5,590 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -530 | -410 | -29.3 | -1,554 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for | 1,524 | 1,148 | 32.8 | 4,036 |
| the period from | | | | |
| continuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Profit/loss for | 133 | -1,241 | 110.7 | -6,992 |
| the period from | | | | |
| discontinuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for | 1,658 | -92 | 1,902.2 | -2,956 |
| the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | | | |
| comprehensive | | | | |
| income: | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Exchange | 332 | -371 | -189.5 | -1,513 |
| differences on | | | | |
| translating | | | | |
| foreign | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Income tax | 0 | 0 | 0 | 0 |
| relating to | | | | |
| components of | | | | |
| other | | | | |
| comprehensive | | | | |
| income | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | 332 | -371 | -189.5 | -1,513 |
| comprehensive | | | | |
| income, net of | | | | |
| tax | | | | |
--------------------------------------------------------------------------------
| Total | 1,990 | -464 | -528.9 | -4,469 |
| comprehensive | | | | |
| income | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | | | | |
| attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of | 1,658 | -92 | 0.0 | -2,956 |
| the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0 | 0 | 0.0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehensive | | | | |
| income | | | | |
--------------------------------------------------------------------------------
| attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of | 1,990 | -464 | 0.0 | -4,469 |
| the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0 | 0 | 0.0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | | | | |
| share, diluted | | | | |
| and undiluted, | | | | |
| EUR | | | | |
--------------------------------------------------------------------------------
| From continuing | 0.13 | 0.10 | 0.0 | 0.34 |
| operations | | | | |
--------------------------------------------------------------------------------
| From discontinued | 0.01 | -0.10 | 0.0 | -0.59 |
| operations | | | | |
--------------------------------------------------------------------------------
| Total | 0.14 | -0.01 | 0.0 | -0.25 |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| EUR thousand | 31.3.2009 | 31.3.2008 | Change | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Goodwill | 8,694 | 9,385 | -691 | 8,362 |
--------------------------------------------------------------------------------
| Other intangible assets | 2,483 | 2,521 | -38 | 2,514 |
--------------------------------------------------------------------------------
| Tangible assets | 11,713 | 14,038 | -2,325 | 11,823 |
--------------------------------------------------------------------------------
| Deferred tax assets | 3,009 | 2,987 | 22 | 3,207 |
--------------------------------------------------------------------------------
| Other non-current | 67 | 72 | -5 | 68 |
| assets | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 25,966 | 29,003 | -3,037 | 25,975 |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 11,307 | 22,590 | 11,283 | 12,408 |
--------------------------------------------------------------------------------
| Trade and other | 13,558 | 18,667 | -5,109 | 12,856 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Other liquid assets | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Cash at bank and in | 7,524 | 4,417 | 3,107 | 8,035 |
| hand | | | | |
--------------------------------------------------------------------------------
| Current assets total | 32,389 | 45,674 | -13,285 | 33,300 |
--------------------------------------------------------------------------------
| Non-current assets held | 0 | 0 | 0 | 0 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Total assets | 58,356 | 74,676 | -16,320 | 59,275 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Shareholders´ equity | | | | |
--------------------------------------------------------------------------------
| Share capital | 2,141 | 2,141 | 0 | 2,141 |
--------------------------------------------------------------------------------
| Share premium reserve | 0 | 8,488 | -8,488 | 0 |
--------------------------------------------------------------------------------
| Other reserves | 5 | 5 | 0 | 5 |
--------------------------------------------------------------------------------
| Invested unrestricted | 8,488 | 0 | 8,488 | 8,488 |
| equity fund | | | | |
--------------------------------------------------------------------------------
| Translation differences | -2,060 | -1,252 | -808 | -2,393 |
--------------------------------------------------------------------------------
| Retained earnings | 8,440 | 13,780 | -5,340 | 11,395 |
--------------------------------------------------------------------------------
| Profit for the period | 1,658 | -92 | 1,750 | -2,956 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity | 18,670 | 23,070 | -4,398 | 16,680 |
| attributable to equity | | | | |
| holders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Minority share | O | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total equity | 18,670 | 23,070 | -4,400 | 16,680 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 20,159 | 18,913 | 1,246 | 22,057 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-free | 353 | 0 | 353 | 348 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 365 | 1,083 | -718 | 353 |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 4,426 | 13,948 | -9,522 | 6,648 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other | 14,383 | 17,664 | -3,281 | 13,188 |
| non-current liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 39,686 | 51,607 | -11,921 | 42,594 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | 58,356 | 74,676 | -16,320 | 59,275 |
| liabilities | | | | |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| EUR | Share | Share | Other | Inve | Transl | Retain | Minor | Total |
| thousand | Capit | Premiu | Reser | sted | ation | ed | ity | |
| | al | m | ves | Unre | Differ | Earnin | Inter | |
| | | Reserv | | stri | ences | gs | est | |
| | | e | | cted | | | | |
| | | | | Equi | | | | |
| | | | | ty | | | | |
| | | | | Fund | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2141 | 8488 | 5 | 0 | -880 | 13780 | 0 | 25533 |
| at 1 | | | | | | | | |
| January | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehen | 0 | 0 | 0 | 0 | -372 | -92 | 0 | -464 |
| sive | | | | | | | | |
| result | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | 0 | | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2141 | 8488 | 5 | 0 | -1252 | 13688 | 0 | 23070 |
| at 31st | | | | | | | | |
| March | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2141 | 0 | 5 | 8488 | -2393 | 8440 | 0 | 16680 |
| at 1st | | | | | | | | |
| January | | | | | | | | |
| 2009 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehen | 0 | 0 | 0 | 0 | 332 | 1658 | 0 | 1990 |
| sive | | | | | | | | |
| result | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | 0 | | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2141 | 0 | 5 | 8488 | -2061 | 10098 | 0 | 18670 |
| at 31st | | | | | | | | |
| March | | | | | | | | |
| 2009 | | | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change | 1.1. - |
| | 31.3. | 31.3. | | 31.12. |
| | 2009 | 2008 | | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Operating Activities | | | |
--------------------------------------------------------------------------------
| Profit for the period | 1,658 | -92 | 1,750 | -2,956 |
--------------------------------------------------------------------------------
| Adjustments | 248 | 2,544 | -2,296 | 6,182 |
--------------------------------------------------------------------------------
| Change in working capital | 1,495 | -1,016 | 2,511 | 11,815 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow Generated by | 3,401 | 1,436 | 1,965 | 15,041 |
| Operations | | | | |
--------------------------------------------------------------------------------
| Interest paid | -398 | -712 | 314 | -1,876 |
--------------------------------------------------------------------------------
| Interest received | 28 | 32 | -4 | 259 |
--------------------------------------------------------------------------------
| Other financial items | 10 | -624 | 0 | -763 |
--------------------------------------------------------------------------------
| Income taxes paid | -33 | -292 | 259 | -1,572 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Cash Flow from | 3,008 | -160 | 2,534 | 11,089 |
| Operating Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing Activities | | | |
--------------------------------------------------------------------------------
| Acquisitions | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Disposal of business | 1,000 | 0 | 0 | 25 |
--------------------------------------------------------------------------------
| Capital expenditure | -386 | -319 | -67 | -1,765 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed | 0 | 0 | 0 | 90 |
| assets | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing | 614 | -319 | -67 | -1,650 |
| Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Financing | | | | |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from long-term | 0 | 0 | 0 | 10,000 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Instalments of long-term | -4,038 | -2,408 | -1,630 | -8,973 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Change in short-term loans | 4 | 2,500 | -2,496 | -4,563 |
--------------------------------------------------------------------------------
| Instalments of finance | -99 | -97 | -2 | -390 |
| lease liabilities | | | | |
--------------------------------------------------------------------------------
| Dividends paid | 0 | 0 | 0 | -2,379 |
--------------------------------------------------------------------------------
| Net Cash Flow from | -4,133 | -5 | -4,128 | -6,305 |
| Financing | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in Liquid Funds | -511 | -484 | -1,661 | 3,134 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds in the | 8,035 | 4,901 | 3,134 | 4,901 |
| beginning of period | | | | |
--------------------------------------------------------------------------------
| Change in liquid funds | -511 | -484 | -27 | 3,134 |
--------------------------------------------------------------------------------
| Liquid funds at the end of | 7,524 | 4,417 | 3,107 | 8,035 |
| period | | | | |
--------------------------------------------------------------------------------
QUARTERLY KEY FIGURES
--------------------------------------------------------------------------------
| EUR thousand | I/2009 | IV/2008 | III/2008 | II/2008 | I/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Net sales | 18,530 | 20,454 | 21,111 | 22,449 | 20,907 |
--------------------------------------------------------------------------------
| Materials and | -7,347 | -8,822 | -9,008 | -8,559 | -8,186 |
| services | | | | | |
--------------------------------------------------------------------------------
| Employee benefit | -4,827 | -4,282 | -5,252 | -5,393 | -5,723 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -820 | -819 | -884 | -1,362 | -901 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating expenses | -3,836 | -4,591 | -4,193 | -5,220 | -3,413 |
--------------------------------------------------------------------------------
| Other operating | 300 | 229 | 11 | 32 | 10 |
| income | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 2,001 | 2,168 | 1,785 | 1,947 | 2,694 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial items | 53 | -1,145 | -1,328 | 606 | -1,137 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before taxes | 2,054 | 1,023 | 456 | 2,553 | 1,558 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -530 | -401 | -88 | -655 | -410 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for the | 1,524 | 622 | 368 | 1,898 | 1,148 |
| period from | | | | | |
| continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Profit/loss for the | 133 | -755 | 482 | -5,478 | -1,241 |
| period from | | | | | |
| discontinuing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for the | 1,658 | -133 | 850 | -3,580 | -92 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | 0.14 | -0.01 | 0.07 | -0.30 | -0.01 |
| EUR | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.14 | -0.01 | 0.07 | -0.30 | -0.01 |
| EUR, diluted | | | | | |
--------------------------------------------------------------------------------
| Average number of | | | | | |
| shares, undiluted, | | | | | |
--------------------------------------------------------------------------------
| 1,000 shares | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 |
--------------------------------------------------------------------------------
| Average number of | | | | | |
| shares, diluted, | | | | | |
--------------------------------------------------------------------------------
| 1,000 shares | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 |
--------------------------------------------------------------------------------
| Average number of | 461 | 480 | 499 | 556 | 570 |
| personnel | | | | | |
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------
| EUR thousand | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On own behalf | | | |
--------------------------------------------------------------------------------
| Mortgages | 2,783 | 2,783 | 2,783 |
--------------------------------------------------------------------------------
| Corporate mortgages | 12,500 | 12,500 | 12,500 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Lease liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| - in next 12 months | 551 | 514 | 492 |
--------------------------------------------------------------------------------
| - in next 1-5 years | 1,493 | 2,106 | 1,756 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | 180 | 1,027 | 92 |
--------------------------------------------------------------------------------
DERIVATIVE FINANCIAL INSTRUMENTS
--------------------------------------------------------------------------------
| Nominal values | 31.3.2009 | 31.3.2008 | 31.12.2008 |
| EUR thousand | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange derivatives | | | |
--------------------------------------------------------------------------------
| Forward contracts | 1,412 | 556 | 1,770 |
--------------------------------------------------------------------------------
| Purchased currency options | 0 | 5,026 | 0 |
--------------------------------------------------------------------------------
| Sold currency options | 0 | 3,607 | 0 |
--------------------------------------------------------------------------------
| Currency swaps | 0 | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate derivatives | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | 9,726 | 250 | 9,810 |
--------------------------------------------------------------------------------
| Purchased interest rate options | 5,000 | 4,667 | 3,500 |
--------------------------------------------------------------------------------
CONSOLIDATED KEY FIGURES
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change, % | 1.1. - |
| | 31.3. | 31.3. | | 31.12. |
| | 2009 | 2008 | | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | | |
--------------------------------------------------------------------------------
| Net sales | 18,530 | 20,907 | -11.4 | 84,921 |
--------------------------------------------------------------------------------
| Operating profit | 2,001 | 2,694 | -25.7 | 8,593 |
--------------------------------------------------------------------------------
| % of net sales | 10.8 | 12.9 | | 10.1 |
--------------------------------------------------------------------------------
| Profit before tax | 2,054 | 1,558 | 31.8 | 5,590 |
--------------------------------------------------------------------------------
| % of net sales | 11.1 | 7.5 | | 6.6 |
--------------------------------------------------------------------------------
| Profit for the period | 1,524 | 1,148 | 32.8 | 4,036 |
--------------------------------------------------------------------------------
| % of net sales | 8.2 | 5.5 | | 4.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ equity | 18,670 | 23,070 | -19.1 | 16,680 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 24,585 | 32,861 | -25.2 | 28,706 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 7,524 | 4,417 | 70.3 | 8,035 |
--------------------------------------------------------------------------------
| Net interest-bearing | 17,061 | 28,444 | -40.0 | 20,671 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Capital employed | 43,255 | 55,930 | -22.7 | 45,386 |
--------------------------------------------------------------------------------
| Return on equity, % | 37.5 | -1.6 | | -14.7 |
--------------------------------------------------------------------------------
| Return on capital employed, | 24.0 | 2.6 | | 0.0 |
| % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 32.0 | 30.9 | | 28.2 |
--------------------------------------------------------------------------------
| Net gearing, % | 91.4 | 123.3 | | 123.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | 386 | 319 | 21.0 | 1,765 |
--------------------------------------------------------------------------------
| % of sales | 2.1 | 1.5 | | 2.1 |
--------------------------------------------------------------------------------
| Research and development | 438 | 650 | -32.6 | 1,918 |
| costs | | | | |
--------------------------------------------------------------------------------
| % of net sales | 2.4 | 3.1 | | 2.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order stock | 12,891 | 15,469 | -16.7 | 11,650 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.14 | -0.01 | 1,893.2 | -0.25 |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | 0.14 | -0.01 | 1,893.2 | -0.25 |
| diluted | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.57 | 1.98 | -20.7 | 1.40 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares | | | | |
--------------------------------------------------------------------------------
| - cumulative | 11,897 | 11,897 | 0.0 | 11,897 |
--------------------------------------------------------------------------------
| - cumulative, diluted | 11,897 | 11,897 | 0.0 | 11,897 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of employees | 461 | 570 | -19.1 | 527 |
--------------------------------------------------------------------------------
