Interim Report for January - September 2000

Interim Report for January - September 2000 * Invoiced sales rose 33% to SEK 800 M (604). * Profit after net financial items amounted to SEK 91 M (24). * Earnings per share after full tax totaled SEK 9.88 (1.33). * Continued successes in telecom equipment industry. Sales rose 52%. This segment accounted for half of Group sales during the quarter. * Profit after net financial items for the full year is expected to be about SEK 120 M, based on sales of approximately SEK 1.1 billion. Third quarter of 2000 The positive trend during the first half-year continued during the third quarter. Invoiced sales rose 39% to SEK 285 M, compared with SEK 205 M in the corresponding period in the preceding year. Order bookings totaled SEK 272 M (206), an increase of 32%. The increase in invoicing is attributable to favorable demand in largely all markets. A key contributing factor is the strong growth of customers in the telecom equipment industry. Nefab's invoicing to the telecom equipment industry segment rose during the quarter by about 56% and thus accounted for half of Group sales during the quarter. Other market segments were up about 25%. Profit, after net financial items, for the third quarter amounted to SEK 33 M (15). First nine months of 2000 Invoiced sales in the first nine months of 2000 amounted to SEK 800 M (604), a 33% increase. Order bookings to date this year amounted to SEK 813 M (614), an increase of 32%. Business area NEFAB ExPak Sales in the largest business area, NEFAB ExPak, rose 32% to SEK 611 M (463). The business area, which comprises complete packaging solutions for shipments over long distances, accounts for about 76% of total sales. Increases were noted largely in all markets. Sales trends in this business area are strongly dependent on customers in the telecom equipment industry. Business area NEFAB RePak The NEFAB RePak business area, which comprises complete packaging solutions for return deliveries, has developed favorably during the year. Invoiced sales increased 36% to SEK 165 M (121). The business area accounts for approximately 21% of Group invoiced sales. The automotive industry is a prioritized segment for the business area. A number of large orders from subsuppliers to the automotive industry contributed to the favorable development. Telecom equipment and automotive industry market segments Telecom equipment industry Nefab is consolidating its position as market leader in the world for deliveries of packaging to the telecom equipment industry. Sales increased 52% to SEK 378 M (249) and thus account for about 47% of Group sales. A co-operation agreement was signed in the beginning of the year with Ericsson Segment Operators. In addition to deliveries of complete packaging solutions, Nefab will assist Ericsson by providing consulting services in technical packaging matters. The agreement becomes effective on January 1, 2001. Nefab's deliveries to the telecom equipment industry pertain particularly to packaging of equipment for fixed and mobile networks. Less than 10% of the packaging is for telephones. Automotive industry Invoiced sales to the automotive segment totaled SEK 65 M (55), an increase of 19%, corresponding to 8% of Group sales. Earnings Profit after net financial items for the first nine months amounted to SEK 91 M (24), included SEK 7 M pertaining to the discounted current value of the surplus funds from SPP. The earnings improvement is attributable to higher sales volumes and the resulting increase in capacity utilization, while overhead costs remained stable. Improvements were noted in virtually all markets and for both business areas. The change in exchange rates is assessed to have affected profit after net financial items negatively in the range of SEK 14 M compared with the year-earlier period. Tax costs for the year have been reduced by SEK 3.6 M as a result of a ruling from the Administrative Court of Appeal regarding a case involving Nefab's income tax returns for 1989. The tax reduction corresponds to SEK 0.52 per share. Earnings per share during the period amounted to SEK 9.88 (1.33), of which the surplus funds from SPP account for SEK 0.71 per share. The return on capital employed was 31.0% (12.1). Capacity and investments Group investments amounted to SEK 34 M (26), most of which pertained to machinery and equipment. Capacity utilization was high in virtually all production units. To increase capacity and ensure a high delivery precision, decisions were made regarding a number of investment projects. During October, the operations in China were moved to new, leased premises. Consequently, capacity for the Asia market is doubled. A new plant is being constructed in Canada and is scheduled to be in operation during the first quarter of next year. During the autumn, Nefab acquired a new, larger property in the UK, to which operations will be moved at year-end. It was also decided to establish a new production unit in Estonia. It is projected that production can start up at mid-year 2001. In total, these four projects involve investments totaling about SEK 100 M during a 12-month period. Financial position The equity/assets ratio on September 30 was 45.0% (43.4). Shareholders' equity per share amounted to SEK 44.16 (32.22). The Group's liquid assets at the same date amounted to SEK 96 M (75), including unutilized credit facilities. Outlook for full-year 2000 Invoiced sales are expected to continue to show favorable development, particularly in the telecom equip- ment industry segment. As a whole, profit after net financial items for the full year is expected to be about SEK 120 M, based on sales of approximately SEK 1.1 billion. Profit and loss 0001-0009 9901-9909 9910-0009 9901-9912 accounts (SEK M) 9 months 9 months 12 months 12 months Net sales 800 604 1033 837 Cost of goods sold -577 -442 -747 -612 Gross profit 223 162 286 225 Selling expenses -74 -75 -102 -103 Administrative -59 -54 -81 -76 expenses Other operating 7 - 7 - income Operating profit 97 33 110 46 Net financial items -6 -9 -7 -10 Profit after net 91 24 103 36 financial items Taxes -23 -15 -26 -18 Net profit for the 68 9 77 18 year Depreciation 28 28 37 37 included above Balance sheets (SEK 000930 990930 991231 M) Fixed assets 265 236 247 Current assets 414 283 303 Equity capital 305 223 239 Provisions 26 25 28 Long-term 142 126 125 liabilities Current liabilities 206 145 158 Total capital 679 519 550 Of which interest- 157 135 141 bearing liabilities Cash flow statements 0001-0009 9901-9909 9901-9912 (SEK M) Operating profit 97 33 46 Depreciation, -1 4 9 financial net and taxes Cash flow from the 96 37 55 year's operation Change in working -56 -11 -19 capital Net investments in -34 -26 -37 fixed assets Cash flow after 6 0 -1 investments Dividend -10 -10 -10 Financing 10 -5 -5 Changes in liquid 6 -15 -16 funds Key ratios 0001-0009 9901-9909 9910-0009 9901-9912 Operating margin, % 12.1 5.4 10.7 5.5 Profit margin, % 11.4 4.0 10.0 4.3 Return on equity 33.4 5.4 29.4 7.7 capital, % Return on total 21.3 8.6 18.8 8.8 capital, % Return on capital 31.0 12.1 27.3 12.4 employed, % Equity/assets 45.0 43.4 45.0 44.1 ratio, % Employees, yearly 1064 880 1046 908 average Net investments, 34 26 45 37 SEK M Key ratios per share Profit per share, 9.88 1.33 11.22 2.67 full tax, SEK Equity capital per 44.16 32.22 44.16 34.65 share, SEK Number of shares at the end of the 6,907 6,907 6,907 6,907 period, in thousands Share price on 120 57 120 78 closing day, SEK For definitions, see Annual Report for 1999. Future financial reports Preliminary report on 2000 operations February 14, 2001 Annual Report April 2001 Interim report January-March 2001 May 4, 2001 Annual General Meeting May 19, 2001 For further information, contact President and CEO Lars-Åke Rydh, tel. +46-70-592 45 70, e-mail lars-ake.rydh@nefab.se, or CFO Anna Stålenbring, tel +46-70-814 23 44, e- mail anna.stalenbring@nefab.se Jönköping, November 7, 2000 Lars-Åke Rydh President and CEO This Interim Report has not been examined by the company's auditors. Information about Nefab Nefab delivers complete packaging solutions to international industrial groups, primarily within the telecom equipment and automotive industry. Nefab operates within two business areas - NEFAB ExPak (collapsible export packaging systems) and NEFAB RePak (reusable transport-packaging and storage systems). Nefab has its own companies' in Europe, North and South America and Asia. Annual sales is about SEK 1BN. Nefab is listed on the OM Stockholm Exchange. Nefab AB (publ) Östra Storgatan 20 . P O Box 2184 . SE-550 02 Jönköping . Sweden Telephone +46(0)36-345050 . Telefax +46(0)36-150444 . Organization No. 556226-8143 Homepage: www.nefab.com . E-mail: info@nefab.se The registered office of the board of directors is in Ovanåker, Sweden Quarterly data Q1/9 Q2/9 Q3/98 Q4/98 Q1/9 Q2/9 Q3/9 Q4/9 Q1/0 Q2/0 Q3/0 8 8 9 9 9 9 0 0 0 Net 170 182 188 207 191 207 205 234 240 275 285 sales Cost -122 -132 -136 -155 -143 -152 -147 -170 -172 -198 -207 of goods sold Gross 48 50 52 52 48 55 58 64 68 77 78 profi t Selli -23 -25 -23 -30 -26 -27 -22 -28 -24 -26 -24 ng expen ses Admin -17 -19 -18 -22 -18 -18 -18 -22 -21 -19 -19 istra tive expen ses Other - - - - - - - - - 7 - opera ting incom e Opera 8 6 11 0 4 10 18 14 23 39 35 ting profi t Net -1 0 -2 -1 -3 -2 -3 -2 -2 -2 -2 finan cial items Profi t 7 6 9 -1 1 8 15 12 21 37 33 after net finan cial items Taxes -2 -3 -5 -2 -3 -6 -6 -3 -4 -10 -9 Net 5 3 4 -3 -2 2 9 9 17 27 24 profi t for the year Fixed 207 215 245 247 241 240 236 246 243 254 265 asset s Curre 243 263 273 275 266 286 283 304 335 377 414 nt asset s Equit 235 229 235 233 223 216 222 239 256 274 305 y capit al Provi 18 18 22 26 26 26 26 27 26 26 26 sions Long- 72 104 137 131 140 148 126 126 124 147 142 term liabi litie s Curre 125 127 124 132 118 136 145 158 172 184 206 nt liabi litie s Total 450 478 518 522 507 526 519 550 578 631 679 capit al Opera 4.8 3.2 5.6 0.2 2.2 5.1 8.8 5.8 9.6 11.6 12.4 ting * margi n, % Profi 4.3 3.2 4.4 -0.3 0.3 3.9 7.5 5.2 8.8 10.8 11.7 t * margi n, % Retur n on 8.2 4.6 6.5 -4.2 -4.1 4.6 16.4 16.1 28.0 33.1 33.3 equit * y capit al, % Retur 7.9 5.9 8.8 1.6 3.6 8.4 13.9 10.6 16.6 21.4 21.9 n on * total capit al, % Retur n on 11.1 8.2 12.1 2.2 4.9 11.5 19.6 15.2 23.8 30.8 31.9 capit * al emplo yed, % Equit 52.3 48.4 45.7 45.1 44.5 41.6 43.4 44.1 44.3 43.5 45.0 y/ass ets ratio , % Profi t per 0.69 0.39 0.54 -0.36 - 0.36 1.30 1.34 2.51 3.17 3.49 share 0.34 * , full tax, SEK Equit y 34.0 33.0 3.96 33.68 32.2 31.2 32.2 34.6 37.0 39.6 44.1 capit 7 9 9 6 2 5 1 0 6 al per share , SEK Share price 131 119 98 85 60 64 57 78 70 94 120 on closi ng day, SEK · Calculated with SPP recovery excluded Sales development per quarter Earnings trend per quarter (SPP recovery excluded) ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/28/20010528BIT00440/bit0001.doc http://www.bit.se/bitonline/2001/05/28/20010528BIT00440/bit0001.pdf