Exel Interim Report for January 1 - June 30, 2008
EXEL OYJ INTERIM REPORT 24 July 2008 at 11.00 pm 1 (12)
EXEL INTERIM REPORT FOR JANUARY 1 - JUNE 30, 2008 Summary - Net sales in the first six months decreased to EUR 48.9 (57.5) million, 15.0 per cent below the corresponding period previous year - Net sales in the second quarter were EUR 24.8 (28.7) million - Operating loss in the first six months was EUR -4.3 (operating profit 6.2) million or -8.8 (+10.8) per cent of net sales, including EUR -7.3 million non-recurring items - Operating loss in the second quarter was EUR -5.6 (+2.7) million or -22.7 (+9.3) per cent of net sales, including EUR -7.3 million non-recurring items - Weaker market conditions in Exel Composites resulted in a decline in the second quarter operating profit to EUR 1.8 (4.5) million, including EUR -1.1 million non-recurring items - Unsatisfactory performance in Exel Sports Brands continued, with an operating loss of EUR -7.6 (-1.8) million in the second quarter, including EUR -6.6 million non-recurring items - Outdoor business of Exel Sports Brands was transferred per 1 June 2008 - Fully diluted earnings per share were EUR -0.31 (0.36) - For the full-year 2008, the Group's profit before taxes is expected to be negative. Profit before taxes in the second half of the year is expected to be positive. Vesa Korpimies, President and CEO: “During the second quarter 2008 Exel has focused on the restructuring of the operations including the selling of Exel Sports Brands' Outdoor business. The transaction was completed on 1 June 2008. We are pleased that Exel branded poles found a good home. The licensing agreement secures the continued presence and distribution of Exel branded poles in the sports equipment market. Exel can now focus fully on its core business, namely Exel Composites. The expected decline in the sales of wind energy business, as well as weaker conditions in the building and construction and standard composite profile market had a negative impact on the operating profit in Exel Composites during the second quarter. Long-term, composite materials are still expected to gain market share from other materials such as metals and wood. We are strongly focusing on sales and developing new applications for the advanced composite profile market. At the same time a cost reduction program and stringent cost control have been introduced in all the Group's units to restore profitability. With all these measures we believe we will have a positive profitability development and are able to make positive result during the latter half of the year.” CONSOLIDATED KEY FIGURES, EUR million (unaudited) -------------------------------------------------------------------------------- | | 1.4. - | 1.4. - | | 1.1. - | 1.1. | | 1.1. - | | | | | | | - | | | -------------------------------------------------------------------------------- | | 30.6. | 30.6. | Change | 30.6. | 30.6. | Change | 31.12. | -------------------------------------------------------------------------------- | EUR million | 2008 | 2007 | % | 2008 | 2007 | % | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 24.8 | 28.7 | -13.5 | 48.9 | 57.5 | -15.0 | 113.5 | -------------------------------------------------------------------------------- | Operating | -5.6 | 2.7 | -311.5 | -4.3 | 6.2 | -169.4 | 4.8 | | profit | | | | | | | | -------------------------------------------------------------------------------- | % of net | -22.7 | 9.3 | | -8.8 | 10.8 | | 4.2 | | sales | | | | | | | | -------------------------------------------------------------------------------- | Profit for | -3.6 | 1.9 | -284.0 | -3.7 | 4.3 | -186.4 | 2.01 | | the period | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' | 17.2 | 26.2 | -34.4 | 17.2 | 26.2 | -34.4 | 23.5 | | equity | | | | | | | | -------------------------------------------------------------------------------- | Net | 30.7 | 32.3 | -5.1 | 30.7 | 32.3 | -5.1 | 27.9 | | interest-bear | | | | | | | | | ing | | | | | | | | | liabilities | | | | | | | | -------------------------------------------------------------------------------- | Capital | 53.3 | 62.5 | -14.7 | 53.3 | 62.5 | -14.7 | 56.3 | | employed | | | | | | | | -------------------------------------------------------------------------------- | Return on | -71.2 | 29.5 | | -36.1 | 33.6 | | 8.4 | | equity, % | | | | | | | | -------------------------------------------------------------------------------- | Return on | -34.3 | 19.1 | | -15.7 | 22.0 | | 7.3 | | capital | | | | | | | | | employed, % | | | | | | | | -------------------------------------------------------------------------------- | Equity ratio, | 24.5 | 31.9 | | 24.5 | 31.9 | | 31.3 | | % | | | | | | | | -------------------------------------------------------------------------------- | Net gearing, | 178.4 | 123.5 | | 178.4 | 123.5 | | 118.4 | | % | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | -0.30 | 0.16 | | -0.31 | 0.36 | | 0.17 | | share, EUR | | | | | | | | -------------------------------------------------------------------------------- | Earnings per | -0.30 | 0.16 | | -0.31 | 0.36 | | 0.17 | | share, EUR, | | | | | | | | | diluted | | | | | | | | -------------------------------------------------------------------------------- | Equity per | 1.44 | 2.12 | | 1.44 | 2.12 | | 1.98 | | share, EUR | | | | | | | | -------------------------------------------------------------------------------- IFRS REPORTING Exel has applied IFRS reporting since the beginning of 2005. This interim report has been prepared in accordance with the recognition and measurement principles of IFRS, which are the same as in the 2007 financial statements. FINANCIAL PERFORMANCE Net sales in April-June 2008 were EUR 24.8 (28.7) million. Exel's operating profit for April-June decreased to EUR -5.6 million, compared to EUR 2.7 million the corresponding period last year. Net sales in January-June 2008 decreased by 15.0% to EUR 48.9 (57.5) million compared to the corresponding period in 2007. The weaker sales were primarily a result of a decrease in sales in the wind energy segment and the divestment of the Plastics business in Germany in May 2007. Moreover, the Company is also faced with weaker market conditions in other segments, especially in building and construction. Exel's operating profit for the first six months decreased to EUR -4.3 (+6.2) million, compared to the corresponding period last year. Operating profit as a percentage of net sales was -8.8% (+10.8%). The reduction in sales and increased price competition had a negative impact on the operating profit in Exel Composites. Furthermore, the operations of Exel Sports Brands continued to be loss-making. In the interim report for the first quarter of 2008, Exel disclosed that provisions for restructuring costs were expected in the second quarter of 2008. The provisions were estimated not to exceed the level of EUR 7 million. During the second quarter non-recurring items amounting to EUR -6.6 million were recorded in Exel Sports Brands relating to inventory and fixed asset write-offs as well as restructuring provisions, EUR -1.1 million in Exel Composites relating mainly to sub-contracting business to Exel Sports Brands and wind energy business and EUR +0.4 million in Group items consisting of provisions and internal stock margins relating to the Sports business segment. The Group's net financial expenses in the reporting period were EUR -0.8 (-0.5) million. Currency losses due to weakening USD and AUD were the main reason behind the increase. The Group's profit before taxes was EUR -5.1 (+5.7) million and profit after taxes EUR -3.7 (+4.3) million. Earnings per share were EUR -0.31 (0.36). Return on capital employed was -15.7% (22.0%). BALANCE SHEET The Group's consolidated total assets at the end of the reporting period were EUR 70.3 (82.3) million. Equity was EUR 17.2 (26.2) million and equity ratio 24.5 (31.9) per cent. CASH FLOW AND FINANCIAL POSITION Cash flow from business operations in the second quarter was EUR +0.4 (-2.2) million. At the end of the reporting period the Group's liquid assets stood at EUR 5.4 (4.0) million, interest-bearing liabilities at EUR 36.1 (36.3) million, of which short-term liabilities accounted for EUR 10.8 (10.5) million. Net interest-bearing liabilities were EUR 30.7 (32.3) million and the net gearing ratio was 178.4% (123.5). CAPITAL EXPENDITURE AND DEPRECIATION The capital expenditure on fixed assets during the review period amounted to EUR 0.7 (1.2) million. Total depreciation of non-current assets during the period under review amounted to EUR 2.3 (2.1) million. PERSONNEL The number of Exel Group employees on 30 June 2008 was 537 (566), of whom 235 (256) worked in Finland and 302 (310) in other countries. The average number of personnel during the reporting period was 563 (571). The decrease both in Finland and abroad is due to the selling of Exel Sports Brands' Outdoor business. CHANGES IN GROUP STRUCTURE On 1 June 2008 Exel sold its Sports Outdoor business in Finland to ESB Sports Oy and in Germany to Karhu Sports GmbH. The buyers took over the Outdoor business, acquired the inventory and order backlog related to the Outdoor 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 such as Nordic Walker and Nordic Blader for selected product groups. The employees of the Outdoor business in Finland (9 persons) and Germany (17 persons) were transferred to the buyers as existing employees. The remaining Floorball business was organized as a separate operation within Exel Group. Revenue of the asset sale will be recognized based on the actual cash flow according to IFRS standard 18. CHANGES IN GROUP MANAGEMENT Vesa Korpimies started as President and CEO of Exel Oyj on 10 April 2008. The following appointments have been made in the different units of the Group: Richard Thomas (former financial controller) has been appointed General Manager of Exel Composites UK, Josef Lanzmaier (former Technical Director) Managing Director of Exel Composites GmbH, Ken Smith (former General Manager of Brisbane unit) Managing Director of Exel Composites China and Timo Lepistö (former Sales Director) Managing Director of Exel Sports Oy. BUSINESS SEGMENTS The Group's operations are divided into two primary business segments: Exel Composites and Exel Sports Brands. Exel Composites Exel Composites' key financial figures for the reporting period were as follows: -------------------------------------------------------------------------------- | | 1.4.- | 1.4. - | Change | 1.1. - | 1.1.- | Change | 1.1.- | -------------------------------------------------------------------------------- | | 30.6. | 30.6. | % | 30.6. | 30.6. | % | 31.12. | -------------------------------------------------------------------------------- | EUR million | 2008 | 2007 | | 2008 | 2007 | | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 22.9 | 27.6 | -16.8 | 44.7 | 54.3 | -17.7 | 104.3 | -------------------------------------------------------------------------------- | Operating | 1.8 | 4.5 | -60.2 | 4.7 | 8.8 | -46.7 | 15.2 | | profit | | | | | | | | -------------------------------------------------------------------------------- | % of net | 7.8 | 16.2 | | 10.5 | 16.1 | | 14.6 | | sales | | | | | | | | -------------------------------------------------------------------------------- | Average | 495 | 499 | -0.8 | 497 | 503 | -1.2 | 500 | | number of | | | | | | | | | personnel | | | | | | | | -------------------------------------------------------------------------------- Net sales for Exel Composites in the second quarter of 2008 decreased by 16.8% to EUR 22.9 (27.6) million from the corresponding period previous year. The decrease in sales was primarily a result of procurement model change in the wind energy segment and the divestment of the Plastics business in Germany. Moreover, the Company also faced weaker market conditions in other segments, especially in building and construction. This was partly due to the delay of start-up of new construction projects. The price competition was further intensified during Q2. Operating profit decreased to EUR 1.8 (4.5) million. The reduction in sales and increasing price competition had a negative impact on the operating profit of Exel Composites. During the second quarter non-recurring items amounting to EUR -1.1 million relating mainly to Exel Composites sub-contracting business to Exel Sports Brands and wind energy business. Exel Sports Brands Exel Sports Brands' key financial figures for the reporting period were as follows: -------------------------------------------------------------------------------- | | 1.4.- | 1.4. | Change | 1.1. - | 1.1.- | Change | 1.1.- | | | | - | | | | | | -------------------------------------------------------------------------------- | | 30.6. | 30.6. | % | 30.6. | 30.6. | % | 31.12. | -------------------------------------------------------------------------------- | EUR million | 2008 | 2007 | | 2008 | 2007 | | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 2.4 | 2.2 | 10.5 | 5.6 | 5.9 | -5.6 | 13.6 | -------------------------------------------------------------------------------- | Operating | -7.6 | -1.8 | -330.5 | -8.9 | -2.5 | -262.5 | -10.7 | | profit | | | | | | | | -------------------------------------------------------------------------------- | % of net | -316.6 | -81.3 | | -160.5 | -41.8 | | -78.1 | | sales | | | | | | | | -------------------------------------------------------------------------------- | Average | 43 | 46 | -6.5 | 47 | 49 | -4.1 | 49 | | number of | | | | | | | | | personnel | | | | | | | | -------------------------------------------------------------------------------- Exel Sports Brands' Outdoor business was sold on 1 June 2008. Thereafter the business consists solely of the Floorball business. The net sales of Exel Sports Brands in the second quarter of 2008 increased by 10.5% to EUR 2.4 (2.2) million from the previous year's level. Exel Sports Brands' operating loss was EUR -7.6 (-1.8) million in the second quarter. During the second quarter, non-recurring items amounting to EUR -6.6 million were recorded composing of inventory and fixed asset write-offs, and provisions for restructuring measures. SHARES AND SHARE CAPITAL At the end of June, 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 30 June 2008, the market capitalization totaled EUR 86.8 (192.5) million. During the reporting period 719,190 (3,551,182) shares were traded, accounting for 6.0% (29.8%) of the average number of shares outstanding. The highest share quotation was EUR 12.20 (16.70) and the lowest EUR 6.87 (12.50). The share price closed at EUR 7.30 (16.18). The average share price during the review period was EUR 9.37 (14.05). DISCLOSURES OF CHANGES IN HOLDINGS No shareholders' disclosures of changes in holdings in the Company were received by Exel. NEAR-TERM RISKS The most significant 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 and other cost increases may put pressure on profitability. Currency rate changes and further intensified price competition may also have a negative effect on the result. OUTLOOK The global pultrusion market is affected by a worldwide business slow-down. Growth opportunities for Exel Composites may be available in advanced composite profile applications which are continuously being developed. The business segment may, however, have a weak development in the telecommunications due to emerging technologies, building and construction and infrastructure businesses due to slow-down in building activity, as well as in wind energy business where a change of procurement practices will impact the sales and profitability negatively. Increased price competition and higher costs are further putting pressure on profitability. In the future the Group will reinforce the focus on its core business, namely Exel Composites. New profitable applications are being sought continuously. A stringent cost reduction program has been introduced to restore profitability. Therefore, we expect the profit before taxes to be positive in the second half of 2008. For the full year 2008 the Group´s profit before taxes is expected to be negative. Vantaa, 24 July 2008 EXEL OYJ Vesa Korpimies Board of Directors President and CEO Further information: Vesa Korpimies, President and CEO, tel. +358 50 590 6754, or email vesa.korpimies@exel.net DISTRIBUTION OMX Nordic Exchanges Helsinki Main news media www.exel.net Exel is a technology company which designs, manufactures and markets composite profiles and tubes for industrial applications and sports equipment. The personnel's expertise and high level of technology play a major role in Exel's operations. The core of the operations is based on own, internally developed composite technology, product range based on it and the domination of selected market segments with a strong quality and brand image. The Company's growth is based on permanent search of new applications and development in co-operation with customers. Exel concentrates on niche segments and on profitable growth. Exel's share is listed in the Small Cap segment of the OMX Exchanges/Helsinki Nordic list. CONDENSED CONSOLIDATED INCOME STATEMENT (unaudited) -------------------------------------------------------------------------------- | | 1.4.-3 | 1.4.-30 | Change | 1.1.-30 | 1.1-30. | Change | 1.1.-3 | | | 0.6. | .6. | | .6. | 6. | | 1.12. | -------------------------------------------------------------------------------- | | 2008 | 2007 | % | 2008 | 2007 | % | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 24,842 | 28,721 | -13.5 | 48,919 | 57,518 | -15.0 | 113,48 | | | | | | | | | 9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other | 33 | 412 | -92.0 | 43 | 456 | -90.6 | 854 | | operating | | | | | | | | | income | | | | | | | | -------------------------------------------------------------------------------- | Operating | -29,13 | -25,414 | -14.6 | -50,981 | -49,645 | -2.7 | -103,4 | | expenses | 2 | | | | | | 45 | -------------------------------------------------------------------------------- | Depreciati | -1,372 | -1,057 | -29.8 | -2,273 | -2,141 | -6.2 | -6,118 | | on and | | | | | | | | | impairment | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating | -5,629 | 2,662 | -311.5 | -4,292 | 6,188 | -169.4 | 4,780 | | profit | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net | 554 | -190 | 391.6 | -814 | -530 | -53.6 | -2,360 | | financial | | | | | | | | | items | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit | -5,075 | 2,472 | -305.3 | -5,106 | 5,658 | -190.2 | 2,420 | | before tax | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income | 1,495 | -526 | 384.2 | 1,433 | -1,408 | 201.8 | -410 | | taxes | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/los | -3,580 | 1,946 | -284.0 | -3,673 | 4,250 | -186.4 | 2,010 | | s for the | | | | | | | | | period | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to: | | | | | -------------------------------------------------------------------------------- | Equity | -3,580 | 1,946 | | -3,673 | 4,250 | | 2,010 | | holders of | | | | | | | | | the parent | | | | | | | | | company | | | | | | | | -------------------------------------------------------------------------------- | Minority | 0 | 0 | | 0 | 0 | | 0 | | interest | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings | -0.30 | 0.16 | | -0.31 | 0.36 | | 0.17 | | per share, | | | | | | | | | EUR | | | | | | | | -------------------------------------------------------------------------------- | Earnings | -0.30 | 0.16 | | -0.31 | 0.36 | | 0.17 | | per share, | | | | | | | | | EUR, | | | | | | | | | diluted | | | | | | | | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEET -------------------------------------------------------------------------------- | EUR thousand | 30.6.2008 | 30.6.2007 | Change | 31.12.2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | | -------------------------------------------------------------------------------- | Goodwill | 9,799 | 10,300 | -501 | 9,627 | -------------------------------------------------------------------------------- | Other intangible assets | 3,085 | 2,941 | 144 | 2,689 | -------------------------------------------------------------------------------- | Tangible assets | 12,707 | 18,010 | -5,303 | 14,796 | -------------------------------------------------------------------------------- | Deferred tax assets | 4,628 | 2,663 | 1,965 | 2,521 | -------------------------------------------------------------------------------- | Other non-current | 69 | 76 | -7 | 76 | | assets | | | | | -------------------------------------------------------------------------------- | Non-current assets | 30,289 | 33,990 | -3,702 | 29,710 | | total | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Inventories | 17,095 | 23,142 | -6,047 | 22,155 | -------------------------------------------------------------------------------- | Trade and other | 17,450 | 20,572 | -3,122 | 18,426 | | receivables | | | | | -------------------------------------------------------------------------------- | Cash at bank and in | 5,431 | 3,986 | 1,445 | 4,901 | | hand | | | | | -------------------------------------------------------------------------------- | Current assets total | 39,976 | 47,700 | -7,724 | 45,482 | -------------------------------------------------------------------------------- | Non-current assets held | 0 | 560 | -560 | 0 | | for sale | | | | | -------------------------------------------------------------------------------- | Total assets | 70,265 | 82,250 | -11,985 | 75,192 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | | | -------------------------------------------------------------------------------- | Shareholders´ equity | | | | | -------------------------------------------------------------------------------- | Share capital | 2,141 | 2,141 | 0 | 2,141 | -------------------------------------------------------------------------------- | Share issue | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Share premium reserve | 8,492 | 8,492 | 0 | 8,492 | -------------------------------------------------------------------------------- | Retained earnings | 10,225 | 11,295 | -1,070 | 10,890 | -------------------------------------------------------------------------------- | Profit for the period | -3,673 | 4,250 | -7,923 | 2,010 | -------------------------------------------------------------------------------- | Total equity | 17,186 | 26,179 | -8,993 | 23,533 | | attributable to equity | | | | | | holders of the parent | | | | | | company | | | | | -------------------------------------------------------------------------------- | Minority share | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Total equity | 17,186 | 26,179 | -8,993 | 23,533 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | | -------------------------------------------------------------------------------- | Interest-bearing | 25,331 | 25,840 | -509 | 21,755 | | liabilities | | | | | -------------------------------------------------------------------------------- | Deferred tax | 1,092 | 695 | 397 | 753 | | liabilities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current liabilities | | | | | -------------------------------------------------------------------------------- | Interest-bearing | 10,758 | 10,468 | 290 | 11,008 | | liabilities | | | | | -------------------------------------------------------------------------------- | Trade and other | 15,898 | 19,069 | -3,171 | 17,799 | | non-current liabilities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total liabilities | 53,079 | 56,071 | -2,992 | 51,658 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity and | 70,265 | 82,250 | -11,985 | 75,192 | | liabilities | | | | | -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY -------------------------------------------------------------------------------- | EUR thousand | Share | Share | Share | Retained | Minority | Total | | | Capital | Issue | Premium | Earnings | Interest | | | | | | Reserve | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance at 1 | 2,141 | 0 | 8,492 | 13,729 | 0 | 24,363 | | January 2007 | | | | | | | -------------------------------------------------------------------------------- | Share issue | 0 | 0 | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Exchange rate | 0 | 0 | 0 | -55 | 0 | -55 | | differences | | | | | | | -------------------------------------------------------------------------------- | Other items | 0 | 0 | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Dividend | | | | -2,379 | | -2,379 | -------------------------------------------------------------------------------- | Profit for | | | | 4,250 | 0 | 4,250 | | the period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance at 30 | 2,141 | 0 | 8,492 | 15,545 | 0 | 26,179 | | June 2007 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance at | 2,141 | 0 | 8,492 | 12,900 | 0 | 23,533 | | 1st January | | | | | | | | 2008 | | | | | | | -------------------------------------------------------------------------------- | Share issue | 0 | 0 | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Exchange rate | 0 | 0 | 0 | -295 | 0 | -295 | | differences | | | | | | | -------------------------------------------------------------------------------- | Other items | 0 | 0 | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Dividend | | | | -2,379 | | -2,379 | -------------------------------------------------------------------------------- | Profit for | | | | -3,673 | 0 | -3,673 | | the period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance at 30 | 2,141 | 0 | 8,492 | 6,552 | 0 | 17,186 | | June 2008 | | | | | | | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED CASH FLOW STATEMENT -------------------------------------------------------------------------------- | EUR thousand | 1.1. - | 1.1. - | Change | 1.1. - | | | 30.6. | 30.6. | | 31.12. | | | 2008 | 2007 | | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow from Operating Activities | | | | -------------------------------------------------------------------------------- | Profit for the period | -3,673 | 4,250 | -7,923 | 2,010 | -------------------------------------------------------------------------------- | Adjustments | 1 234 | 3,936 | -2,702 | 9,676 | -------------------------------------------------------------------------------- | Change in working capital | 4,682 | -7,827 | 12,509 | -5,903 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow Generated by | 2,243 | 359 | 1,884 | 5,783 | | Operations | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Interest paid | -953 | -954 | 1 | -1,687 | -------------------------------------------------------------------------------- | Interest received | 47 | 227 | -180 | 137 | -------------------------------------------------------------------------------- | Other financial items | 55 | 181 | 0 | -388 | -------------------------------------------------------------------------------- | Income taxes paid | -1,013 | -2,061 | 1,048 | -1,250 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net Cash Flow from Operating | 379 | -2,248 | 2,753 | 2,595 | | Activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow from Investing Activities | | | | -------------------------------------------------------------------------------- | Acquisitions | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Disposal of business | 0 | 672 | -672 | 672 | -------------------------------------------------------------------------------- | Capital expenditure | -679 | -1,150 | 471 | -2,469 | -------------------------------------------------------------------------------- | Proceeds from sale of fixed | 60 | 493 | -433 | 1,306 | | assets | | | | | -------------------------------------------------------------------------------- | Other cash flow from | 0 | 0 | 0 | 0 | | investing activities | | | | | -------------------------------------------------------------------------------- | Cash Flow from Investing | -619 | 15 | -634 | -491 | | Activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow from Financing | | | | | -------------------------------------------------------------------------------- | Share issue | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Proceeds from long-term | 10,000 | 0 | 10,000 | 0 | | borrowings | | | | | -------------------------------------------------------------------------------- | Instalments of long-term | -6,297 | -992 | -5,305 | -1,600 | | borrowings | | | | | -------------------------------------------------------------------------------- | Change in short-term loans | -360 | 3,580 | -3,940 | 958 | -------------------------------------------------------------------------------- | Installments of finance | -194 | -189 | -5 | -381 | | lease liabilities | | | | | -------------------------------------------------------------------------------- | Dividends paid | -2,379 | -2,379 | 0 | -2,379 | -------------------------------------------------------------------------------- | Net Cash Flow from Financing | 770 | 20 | 750 | -3,402 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in Liquid Funds | 530 | -2,213 | 2,869 | -1,298 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liquid funds in the | 4,901 | 6,199 | -1,298 | 6,199 | | beginning of period | | | | | -------------------------------------------------------------------------------- | Change in liquid funds | 530 | -2,213 | 2,743 | -1,298 | -------------------------------------------------------------------------------- | Liquid funds at the end of | 5,431 | 3,986 | 1,445 | 4,901 | | period | | | | | -------------------------------------------------------------------------------- QUARTERLY KEY FIGURES -------------------------------------------------------------------------------- | EUR thousand | II/ | I/ | IV/ | III/ | II/ | I/ | | | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales by | | | | | | | | segment | | | | | | | -------------------------------------------------------------------------------- | Exel Composites | 22,933 | 21,757 | 24,728 | 25,259 | 27,577 | 26,697 | -------------------------------------------------------------------------------- | Exel Sports | 2,393 | 3,171 | 3,914 | 3,827 | 2,166 | 3,727 | | Brands | | | | | | | -------------------------------------------------------------------------------- | Intra Group | -484 | -850 | -584 | -1,173 | -1,022 | -1,628 | | sales | | | | | | | -------------------------------------------------------------------------------- | Net sales, total | 24,842 | 24,078 | 28,058 | 27,912 | 28,721 | 28,797 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | | | | | | | | by segment | | | | | | | -------------------------------------------------------------------------------- | Exel Composites | 1,782 | 2,890 | 3,853 | 2,556 | 4,478 | 4,283 | -------------------------------------------------------------------------------- | Exel Sports | -7,576 | -1,357 | -3,005 | -5,182 | -1,760 | -704 | | Brands | | | | | | | -------------------------------------------------------------------------------- | Group items and | 165 | -196 | -177 | 547 | -56 | -53 | | eliminations | | | | | | | -------------------------------------------------------------------------------- | Operating | -5,629 | 1,337 | 672 | -2,079 | 2,662 | 3,526 | | profit, total | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net financial | 554 | -1,368 | -989 | -842 | -190 | -340 | | items | | | | | | | -------------------------------------------------------------------------------- | Profit before | -5,075 | -31 | -317 | -2,921 | 2,472 | 3,186 | | taxes | | | | | | | -------------------------------------------------------------------------------- | Income taxes | 1,495 | -62 | 283 | 714 | -526 | -882 | -------------------------------------------------------------------------------- | Profit for the | -3,580 | -92 | -34 | -2,206 | 1,946 | -2,304 | | period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | -0.30 | -0.01 | 0.00 | 0.19 | 0.16 | 0.19 | | share, EUR | | | | | | | -------------------------------------------------------------------------------- | Earnings per | -0.30 | -0.01 | 0.00 | 0.19 | 0.16 | 0.19 | | share, EUR, | | | | | | | | diluted | | | | | | | -------------------------------------------------------------------------------- | Average number | | | | | | | | of shares, | | | | | | | | undiluted, | | | | | | | -------------------------------------------------------------------------------- | 1,000 shares | 11,897 | 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 | 11,897 | -------------------------------------------------------------------------------- | Average number | 556 | 570 | 574 | 569 | 566 | 576 | | of personnel | | | | | | | -------------------------------------------------------------------------------- COMMITMENTS AND CONTINGENCIES -------------------------------------------------------------------------------- | EUR thousand | 30.6.2008 | 30.6.2007 | 31.12.2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | On own behalf | 2,783 | 2,953 | 2,783 | -------------------------------------------------------------------------------- | Corporate mortgages | 12,500 | 12,500 | 12,500 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Lease liabilities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | - in next 12 months | 478 | 503 | 496 | -------------------------------------------------------------------------------- | - in next 1-5 years | 2,078 | 2,324 | 2,205 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other commitments | 480 | 898 | 876 | -------------------------------------------------------------------------------- DERIVATIVE FINANCIAL INSTRUMENTS -------------------------------------------------------------------------------- | Nominal values | 30.6.2008 | 30.6.2007 | 31.12.2007 | | EUR thousand | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Foreign exchange derivatives | | | | -------------------------------------------------------------------------------- | Forward contracts | 1,091 | 8,803 | 8,372 | -------------------------------------------------------------------------------- | Purchased currency options | 3,568 | 2,969 | 5,078 | -------------------------------------------------------------------------------- | Sold currency options | 2,149 | 1,472 | 4,297 | -------------------------------------------------------------------------------- | Currency swaps | 0 | 502 | 1,617 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Interest rate derivatives | | | | -------------------------------------------------------------------------------- | Interest rate swaps | 250 | 417 | 333 | -------------------------------------------------------------------------------- | Purchased interest rate options | 3,889 | 4,667 | 4,667 | -------------------------------------------------------------------------------- CONSOLIDATED KEY FIGURES -------------------------------------------------------------------------------- | EUR thousand | 1.1.- | 1.1. - | Change, % | 1.1. - | | | 30.6. | 30.6. | | 31.12. | | | 2008 | 2007 | | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 48,919 | 57,518 | -15.0 | 113,489 | -------------------------------------------------------------------------------- | Operating profit | -4,292 | 6,188 | -169.4 | 4,780 | -------------------------------------------------------------------------------- | % of net sales | -8.8 | 10.8 | | 4.2 | -------------------------------------------------------------------------------- | Profit before tax | -5,106 | 5,658 | -190.2 | 2,420 | -------------------------------------------------------------------------------- | % of net sales | -10.4 | 9.8 | | 2.1 | -------------------------------------------------------------------------------- | Profit for the period | -3,673 | 4,250 | -186.4 | 2,010 | -------------------------------------------------------------------------------- | % of net sales | -7.5 | 7.4 | | 1.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders´ equity | 17,186 | 26,179 | -34.4 | 23,533 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 36,089 | 36,307 | -0.6 | 32,762 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 5,431 | 3,986 | 36.3 | 4,901 | -------------------------------------------------------------------------------- | Net interest-bearing | 30,658 | 32,321 | -5.1 | 27,861 | | liabilities | | | | | -------------------------------------------------------------------------------- | Capital employed | 53,275 | 62,486 | -14.7 | 56,295 | -------------------------------------------------------------------------------- | Return on equity, % | -36.1 | 33.6 | | 8.4 | -------------------------------------------------------------------------------- | Return on capital employed, | -15.7 | 22.0 | | 7.3 | | % | | | | | -------------------------------------------------------------------------------- | Equity ratio, % | 24.5 | 31.9 | | 31.3 | -------------------------------------------------------------------------------- | Net gearing, % | 178.4 | 123.5 | | 118.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital expenditure | 679 | 18,580 | -96.3 | 2,469 | -------------------------------------------------------------------------------- | % of sales | 1.4 | 32.3 | | 2.2 | -------------------------------------------------------------------------------- | Research and development | 1,471 | 1,160 | 26.8 | 2,824 | | costs | | | | | -------------------------------------------------------------------------------- | % of net sales | 3.0 | 2.0 | | 2.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order stock | 14,793 | 17,902 | -17.4 | 12,889 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, EUR | -0.31 | 0.36 | | 0.17 | -------------------------------------------------------------------------------- | Earnings per share, EUR, | -0.31 | 0.36 | | 0.17 | | diluted | | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | 1.44 | 2.12 | | 1.98 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of shares | | | | | -------------------------------------------------------------------------------- | - cumulative | 11,897 | 11,763 | | 11,830 | -------------------------------------------------------------------------------- | - cumulative, diluted | 11,897 | 11,772 | | 11,847 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of employees | 563 | 587 | -4.1 | 600 | --------------------------------------------------------------------------------