PONSSE´S FINANCIAL STATEMENTS FOR 1 JANUARY TO 31 DECEMBER 2009
PONSSE PLC STOCK EXCHANGE RELEASE 16 FEBRUARY 2010 AT 9:00 A.M.
PONSSE´S FINANCIAL STATEMENTS FOR 1 JANUARY TO 31 DECEMBER 2009
- Net sales amounted to EUR 146.7 (293.0) million.
- Net sales from October to December 2009 were EUR 47.8 million (October to
December 2008 EUR 76.8 million).
- Operating result was EUR -15.7 (13.6) million, equalling -10.7 (4.7) per cent
of net sales.
- Operating result from October to December 2009 was EUR -0.7 million (October
to December 2008 EUR -4.2 million), equalling -1.5 (-5.4) per cent of net sales.
- Result before taxes was EUR -15.6 (6.3) million.
- Cash flow from business operations was positive, EUR 11.2 (-20.8) million.
- Earnings per share were EUR -0.72 (0.16).
- Equity ratio was 42.8 (38.4) per cent.
- Order books stood at EUR 20.3 (23.9) million.
PRESIDENT AND CEO JUHO NUMMELA:
Demand for forest machines in our main market areas continued to pick up speed
during Q4. Order intake development was positive towards the end of the period,
which meant better preconditions for operative business. Sales of the new
eight-wheel harvesters launched during the period under review improved towards
the end of the year. In Q4, factory capacity was increased to one shift.
Net sales fell by 38 per cent during the past quarter when compared to Q4/2008,
and net sales during the entire year fell by 50 per cent when compared to 2008.
The net sales of the after-sales services in Q4 improved by 19 per cent
year-on-year.
Operating result in Q4 was negative but still better than that of Q3 and the
comparable period. The first month of profit in 2009 was December.
During Q4, operating costs were 32 per cent lower than in the comparable period.
Temporary lay-offs continued throughout the entire organisation, except for
sales, after-sales services and R&D. The personnel adjustment measures have been
completed in a good atmosphere.
An adjustment implemented during the period under review achieved cost savings
of EUR 27 million in operating expenses. Furthermore, working capital was
reduced by EUR 21 million.
Since working capital fell, cash flow from business operations was positive
during the period, EUR 11.2 (-20.8) million.
NET SALES
Consolidated net sales for the period under review amounted to EUR 146.7 (293.0)
million, which is 50% less than in the comparison period. International business
operations accounted for 70.6 (63.3) per cent of total net sales. Net sales for
Q4 totalled EUR 47.8 (October to December 2008 76.8) million, which is 38% less
than in the previous year.
Net sales were accumulated per region as follows: Nordic countries 50.7 (54.7)
per cent, the rest of Europe 28.1 (32.0) per cent, North and South America 18.5
(10.8) per cent, and other countries 2.7 (2.5) per cent.
PROFIT PERFORMANCE
Operating result was EUR -15.7 (13.6) million. The Q4 operating result was EUR
-0.7 million (October to December 2008 EUR -4.2 million). Operating result
equalled -10.7 (4.7) per cent of net sales in the period under review. Return on
capital employed (ROCE) stood at -10.2 (7.5) per cent.
Staff costs for the period under review totalled EUR 32.0 (48.2) million, and
other operating expenses EUR 22.1 (33.6) million. Staff costs include EUR 1.7
million of non-recurring dismissal expenses. All the expenses connected with
personnel cuts have been recognised during the period under review.
Operating expenses were 32 per cent lower than in the comparable period. The
adjustment measures implemented during the period under review achieved cost
savings totalling EUR 27 million in operating expenses. The net total of
financial income and expenses was EUR 0.1 (-7.5) million. Exchange rate gains
and losses due to currency rate fluctuations were recognised under financial
items, and their net impact during the period under review totalled EUR 1.9
million (EUR -4.8 million). Income taxes include tax estimated based on the
results of the separate companies as well as EUR -3.7 million of taxes from
previous financial periods. The company has not recognised deferred income tax
receivables based on the result of the period under review. Result for the
period under review totalled EUR -20.3 (4.4) million. Diluted and undiluted
earnings per share (EPS) were EUR -0.72 (0.16). The company does not have any
items that could have a dilutive effect on the earnings per share.
BALANCE SHEET AND FINANCIAL POSITION
At the end of the period under review, the consolidated balance sheet total
amounted to EUR 144.3 (174.8) million. Inventories stood at EUR 67.9 (88.3)
million. Trade receivables totalled EUR 21.4 (22.2) million and liquid assets
stood at EUR 10.6 (8.1) million. Group equity stood at EUR 61.6 (67.1) million
and parent company equity at EUR 45.0 (63.4) million. The equity includes a
hybrid loan of EUR 19 million issued on 31 March 2009. The interest paid for the
hybrid loan, EUR 1.1 million, was entered as a reduction of Group equity. The
amount of interest-bearing liabilities was EUR 51.9 (72.9) million. Of the
company's credit limits, 20 per cent is being used. The parent company's net
receivables from other Group companies stood at EUR 58.0 (57.6) million. The
parent company's receivables from subsidiaries mainly consist of trade
receivables. During the period under review, the parent company has recorded
probable credit losses amounting to EUR 6.1 million due to receivables from
Group companies (in 2008, a total of EUR 6 million). Consolidated net
liabilities totalled EUR 40.8 (64.6) million, and the debt-equity ratio
(gearing) was 84.3 (108.6) per cent. The equity ratio stood at 42.8 (38.4) per
cent at the end of the period under review.
Working capital was successfully reduced by EUR 21 million. Cash flow from
business operations amounted to EUR 11.2 (-20.8) million. Cash flow from
investment activities amounted to EUR -2.0 (-8.5) million.
During the period under review, the company issued an equity-based loan of EUR
19 million (a so-called hybrid loan), aimed at Finnish investors. The loan will
strengthen the Group's capital structure. The loan has a coupon rate of interest
of 12.0 per cent per annum. The loan has no maturity date, but the company is
entitled to redeem it after four years. The loan is treated as equity in the
consolidated financial statements prepared in accordance with IFRS. The
arrangement will not dilute the holdings of the company's shareholders.
A hybrid loan is an equity-based bond that takes a lower precedence than the
company's other liabilities. However, it has a higher priority than other items
included in the company's equity. The holders of hybrid loan bonds do not have
the rights of shareholders.
ORDER INTAKE AND ORDER BOOKS
The order intake for the period under review totalled EUR 143.5 (247.6) million,
while period-end order books were valued at EUR 20.3 (23.9) million. The order
books do not include dealers' minimum purchase commitments. The figures for the
comparison period have been adjusted in this respect.
DISTRIBUTION NETWORK
No changes took place in the Group structure during the period under review.
The subsidiaries included in the Ponsse Group are Epec Oy, Finland; OOO Ponsse,
Russia; Ponsse AB, Sweden; Ponsse AS, Norway; Ponsse Asia-Pacific Ltd, Hong
Kong; Ponsse China Ltd, China; Ponsse Latin America Ltda, Brazil; Ponsse North
America, Inc., United States of America; Ponssé S.A.S., France; Ponsse UK Ltd,
Great Britain; and Ponsse Uruguay S.A., Uruguay. Sunit Oy in Kajaani, Finland,
is an affiliated company in which Ponsse Plc has a holding of 34 per cent.
R&D AND CAPITAL EXPENDITURE
The Group's R&D expenses totalled EUR 4.9 million (EUR 7.6 million) during the
period under review. The amount of activated R&D expenses during the period was
EUR 1.2 million (EUR 1.2 million).
Capital expenditure totalled EUR 2.0 million (EUR 8.5 million). It mainly
consisted of normal maintenance and replacement investments in plant and
machinery.
GENERAL MEETING OF SHAREHOLDERS
The Annual General Meeting took place on 28 April 2009 in Vieremä. The parent
company statements and the consolidated financial statements were approved and
members of the Board of Directors and the President and CEO were discharged from
liability for the 2008 financial period.
The Annual General Meeting authorised the Board to decide, at its discretion, on
the distribution of dividends for 2008 so that the maximum amount of dividends
to be distributed is EUR 0.10 per share (the maximum total dividends are EUR
2,800,000) and that the authorisation is valid until 31 December 2009.
Authorised by the Annual General Meeting, the company´s Board decided on 16
November 2009 to distribute a dividend of EUR 0.10 per share for the year 2008.
The record date was 19 November 2009 and the dividend payment date 27 November
2009.
The Annual General Meeting approved the amendment of Article 2 ("Field of
business") and Article 9 ("Annual General Meeting") and the deletion of Article
11 ("Redemption obligation") of the company's Articles of Association, as
proposed by the Board of Directors.
The Annual General Meeting authorised the Board of Directors to decide on the
acquisition of the company's own shares so that a maximum of 250,000 shares can
be acquired in one or more batches. The maximum amount corresponds to
approximately 0.89 per cent of the company's total shares and votes. The shares
will be acquired in public trading organised by NASDAQ OMX Helsinki Ltd ("the
Stock Exchange"). Furthermore, they will be acquired and paid for according to
the rules of the Stock Exchange and Euroclear Finland Ltd. The Board may,
pursuant to the authorisation, only decide upon the acquisition of the company's
own shares using the company's unrestricted shareholders' equity. The
authorisation is required for supporting the company's growth strategy in the
company's potential business arrangements or other arrangements. In addition,
the shares can be issued to the company's current shareholders or used for
increasing the company's shareholders' ownership value by invalidating shares
after their acquisition, or used in personnel incentive systems. The
authorisation includes the right of the Board to decide upon all other terms and
conditions in the acquisition of own shares. It is proposed the authorisation is
valid until the next Annual General Meeting; however, no later than 30 June
2010.
The Annual General Meeting authorised the Board of Directors to decide on the
issue of new shares and the assignment of treasury shares held by the company
for payment or without payment so that 300,000 shares will be issued on the
basis of the authorisation. The maximum amount corresponds to approximately 1.1
per cent of the company's total shares and votes. The authorisation includes the
right of the Board to decide upon all other terms and conditions of the share
issue. Thus, the authorisation includes a right to organise a directed issue in
deviation of the shareholders' subscription rights under the provisions
prescribed by law. It is proposed the authorisation is used in supporting the
company's growth strategy in the company's potential corporate acquisitions or
other arrangements. In addition, the shares can be issued to the company's
current shareholders, sold through public trading or used in personnel incentive
systems. It is proposed the authorisation is valid until the next Annual General
Meeting; however, no later than 30 March 2010.
BOARD OF DIRECTORS AND THE COMPANY'S AUDITORS
The Board of Directors comprised six members during the period under review:
Maarit Aarni-Sirviö, Nils Hagman (until 28 April 2009), Ilkka Kylävainio, Seppo
Remes, Ossi Saksman (as of 28 April 2009), Einari Vidgrén and Juha Vidgrén.
Einari Vidgrén acted as Chairman of the Board and Juha Vidgrén as Vice Chairman.
The Board of Directors did not establish any committees or commissions from
among its members.
The Board of Directors convened eleven times during the period under review. The
attendance rate was 90.9%.
During the period under review, auditing firm Ernst & Young Oy acted as the
company auditor with Eero Huusko, Authorised Public Accountant, as the principal
auditor.
MANAGEMENT
The following persons were members of the Management Team: Juho Nummela,
Chairman and President and CEO; Pasi Arajärvi, Purchasing and Logistics
Director; Jari Mononen, Communications Director (until 17 February 2009); Juhani
Mäkynen, Service Director; Juha Haverinen, Factory Director; Paula Oksman, HR
Director; Mikko Paananen, CFO (until 1 June 2009); Petri Härkönen, CFO (as of 1
October 2009); Juha Inberg, Technology and R&D Director (as of 1 January 2009);
and Jarmo Vidgrén, Deputy CEO, Sales and Marketing Director. The company
management have regular directors' and officers' liability insurance.
During the period under review, the following persons were members of the Group
Sales Management Team: Cláudio Costa (Latin America), Tapio Ingervo (Central and
Southern Europe), Marko Mattila (North America), Jaakko Laurila (Russia), Mikko
Laurila (Northern Europe until 21 August 2009), Tapio Mertanen (Distribution
Development as well as Sweden and Norway), Juhani Mäkynen (After-Sales
Services), Norbert Schalkx (Asia, Oceania and Africa) as well as Jarmo Vidgrén
(chairman, Finland and the Baltic countries).
PERSONNEL
During the period under review, the Group had an average staff of 858 (1,044).
At the end of the period under review, the Group employed 781 (981) people.
As a result of statutory employer-employee negotiations concluded during the
period under review, the number of Parent Company employees fell by 158 compared
to January 2009(approximately 650 employees). In addition to the redundancies
during February, the negotiations resulted in a decision to use temporary
lay-offs of fixed duration for all personnel groups and temporary lay-offs
lasting until further notice for 29 persons. The implementation of the lay-offs
started during 2009. The people who were made redundant had no obligation to
work during their periods of notice. The payroll costs, including social
security contributions, for the periods of notice amounted to approximately EUR
1.7 million from the period of 1 April - 31 December 2009.
The statutory employer-employee negotiations, begun on 12 June 2009, stated that
as a result of the weak demand for forestry equipment and the uncertain market
situation, preparations should be made to adjust operations. The negotiations on
26 June 2009 reached a solution according to which fixed-term temporary lay-offs
can be implemented in different functions as required. The negotiations
concerned the entire Finnish personnel of Ponsse, approximately 500 people in
total.
The employee-employer negotiation procedure initiated on 30 November 2009 came
to the conclusion that in spite of the markets gradually picking up, the order
book and order intake rate do not yet warrant the utilisation of full capacity.
The markets have shown a positive trend but forecasting demand remains a
challenging task. In order to ensure its ability to respond to changes in the
market and in order to maintain its flexibility, the company is preparing to
adapt its operations also during the first half of the year 2010. The
negotiations on 14 December 2009 reached a solution in which fixed-term
temporary lay-offs can be implemented as required in the functions included
within the scope of these negotiations.
SHARE PERFORMANCE
The company's registered share capital consists of 28,000,000 shares. The
trading volume of Ponsse Plc shares for 1 January - 31 December 2009 totalled
5,705,768, accounting for 20.4% of the total number of shares. Share turnover
came to EUR 25.3 million, and the period's lowest and highest share prices were
EUR 2.99 and EUR 6.99, respectively.
At the end of the period, the share price stood at EUR 6.97 and market
capitalisation was EUR 195.2 million.
At the end of the period under review, the company owned 47,900 treasury shares.
DISCLOSURE NOTIFICATIONS
According to a notice by the company, Juha Vidgrén's ownership of the votes on
Ponsse Plc shares and the share capital exceeded 10% (1/10) on 26 November 2009.
Juha Vidgrén owns 2,868,000 shares, amounting to 10.24% of the company share
capital and votes.
QUALITY AND THE ENVIRONMENT
In its operations, Ponsse observes the ISO 9001:2000 quality standard, the ISO
14001 environmental system standard and the OHSAS 18001 occupational health and
safety standard, the first of which is certified. DNV conducted an audit related
to the ISO 9001:2000 quality system during the period under review.
The company complies with environmental legislation in its operations.
Regulatory amendments are continuously monitored and the necessary actions are
taken accordingly. In accordance with the company's environmental policy, Ponsse
aims to develop and manufacture products with the lowest possible load on the
environment.
Practices and production processes are developed through internal audits and
supplier audits. Investments in auditing have continued, and they have assisted
the company in creating new and better practices, both for its own operations
and those of its suppliers. Production processes are being developed utilising
the method of continual improvement. The quality assurance system stresses the
significance of proactive measures. The Lean Six Sigma quality improvement
scheme was continued during the year.
The company continued its close cooperation with Occupational Healthcare. The
focus was on developing preventive OHC with active patient participation.
The Group-level Data Security Team is responsible for the general development of
information security, maintenance of the Group information security policy and
coordination of information security training.
GOVERNANCE
The company's decision-making and administrative processes comply with the
Finnish Companies Act, other regulations governing listed companies and the
Ponsse Plc Articles of Association. The Board of the company has ratified the
code of governance complying with the Corporate Governance procedure for Finnish
listed companies approved by the Board of the Securities Market Association in
2008. The code aims to ensure that the company is competently managed and that
business procedures and practices of a high ethical and professional standard
are used.
The code of governance can be viewed on Ponsse's website in the Investors
section.
RISK MANAGEMENT
Risk management is based on the company's values as well as strategic and
financial objectives. Risk management aims to support the achievement of the
objectives specified in the company's strategy as well as to ensure the
financial development of the company and the continuity of its business.
Furthermore, risk management aims to identify, assess and monitor
business-related risks which may influence the achievement of the company's
strategic and financial goals or continuity of its business. Decisions on the
necessary measures to anticipate risks and react to observed risks are made on
the basis of this information.
Risk management is a part of regular daily business, and it is also included in
the management system. Risk management is controlled by the risk management
policy approved by the Board.
A risk is any event that may prevent the company from reaching its objectives or
that threatens the continuity of business. On the other hand, a risk may also be
a positive event, in which case the risk is treated as an opportunity. Each risk
is assessed on the basis of its impact and probability. Methods of risk
management include avoiding, mitigating and transferring risks. Risks can also
be managed by controlling and minimising their impact.
SHORT-TERM RISKS AND THEIR MANAGEMENT
The current economic uncertainty is strongly reflected in the company's
business. Business is more difficult to predict than under normal conditions.
The company's ability to react to market changes has been improved by
reorganising the business and developing the company's monitoring systems.
The possible prolongation of the recession will increase the risks associated
with the functionality of the subcontractor and supplier network. As more
capacity is utilised, risks to part and component availability may increase. The
company aims to manage these risks through partnership cooperation. The
financial standing of suppliers is monitored more intensely than normal. The
company continuously surveys new alternative suppliers. As part of its risk
management efforts related to the availability of certain key components, the
company has chosen to manufacture these components in-house.
Reduced production and invoicing volumes increase the risk regarding business
profitability in the Group's different business units. If demand development is
poorer than anticipated, it will be necessary to reassess the need to continue
and expand adjustment and improvement measures to ensure the profitability of
the business. The parent company will monitor the changes in asset values of
Group receivables and the associated risk of impairment. A tax inspection is in
progress at the parent company.
Developments in after-sales services and spare part sales have a causal link
with the utilisation rates of machines. The general economic situation may lead
to lower harvesting volumes and utilisation rates.
The sales of information systems and control systems are closely linked to
economic development and to the global demand for heavy forest machinery. The
markets are being intensively monitored with a view to adjusting operating
expenses to demand when required.
The key objectives of the company's financing risk management include
controlling liquidity, interest and currency risks. Ponsse has ensured its
liquidity by means of credit limit agreements with a number of financial
institutions. The company has issued covenants as security for its financial
liabilities. The Group's most important bank loan covenant is its equity ratio.
The covenant terms and conditions are met on the date of the financial
statements. In order to minimise the impact of any adverse changes in interest
rates, the company uses interest rate swaps and credits tied to different
reference rates. Derivative contracts are used to reduce the negative effect of
changes in exchange rates. Financial unrest increases the uncertainties related
to sales receivables. The terms and conditions of sales against invoice and
receivables monitoring have been reviewed.
Any changes in tax and customs legislation in countries to which Ponsse exports
may pose further challenges to its export trade or its profitability.
EVENTS AFTER THE PERIOD UNDER REVIEW
There are no important events after the period under review.
FUTURE OUTLOOK
The forest machine markets will improve in 2010 when compared to the previous
year. Demand is expected to moderately increase during the first half of the
year and more energetic growth is expected during the latter half of the year.
In spite of the upturn in the markets, predictability remains weak as a result
of the uncertain economic situation. The positive signals concerning an increase
in wood demand and thus improved job opportunities for the customers promote the
development of the business. The growing trend of after-sales services' net
sales is expected to continue.
Order flow permitting, factory capacity will be increased. Temporary lay-offs
will continue as the organisation's capacity is adjusted to the prevailing
demand during the first half of the year. Investments in product development,
sales and after-sales services will continue.
Net sales in 2010 will grow from previous year. Operating result and cash flow
from business operations will be positive. The operating results of the quarters
will be different due to seasonal fluctuation.
ANNUAL GENERAL MEETING
Annual General Meeting will be held on 31 March 2010, starting at 10:00 a.m. at
the company's registered office at Ponssentie 22, FI-74200 Vieremä, Finland.
BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF PROFIT
The company´s Board of Directors proposes that the Annual General Meeting
authorise a dividend per share of EUR 0.15 for 2009.
PONSSE GROUP
CONSOLIDATED PROFIT AND LOSS ACCOUNT (EUR 1,000)
--------------------------------------------------------------------------------
| | | | IFRS | IFRS |
--------------------------------------------------------------------------------
| | | | 10-12/09 | 10-12/08 |
--------------------------------------------------------------------------------
| NET SALES | | | 47,783 | 76,795 |
--------------------------------------------------------------------------------
| Increase (+)/decrease (-) in inventories of | -3,716 | -10,337 |
| finished goods and work in progress | | |
--------------------------------------------------------------------------------
| Other operating income | | | 217 | 1,150 |
--------------------------------------------------------------------------------
| Raw materials and services | | | -29,113 | -48,444 |
--------------------------------------------------------------------------------
| Expenditure on employment-related benefits | -8,284 | -12,232 |
--------------------------------------------------------------------------------
| Depreciation and amortisation | -1,293 | -1,337 |
--------------------------------------------------------------------------------
| Other operating expenses | | | -6,308 | -9,743 |
--------------------------------------------------------------------------------
| OPERATING RESULT | | | -717 | -4,150 |
--------------------------------------------------------------------------------
| Share of results of associated companies | 136 | 40 |
--------------------------------------------------------------------------------
| Financial income and expenses | | 438 | -5,384 |
--------------------------------------------------------------------------------
| RESULT BEFORE TAXES | | -143 | -9,492 |
--------------------------------------------------------------------------------
| Income taxes | | | -2,755 | 3,164 |
--------------------------------------------------------------------------------
| NET RESULT FOR THE PERIOD | | | -2,899 | -6,329 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER ITEMS INCLUDED IN | | | | |
| TOTAL COMPREHENSIVE INCOME: | | | | |
--------------------------------------------------------------------------------
| Translation differences associated with | | -506 | 192 |
| a foreign unit | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -3,405 | -6,137 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted and undiluted earnings per share | -0.10 | -0.23 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | IFRS | IFRS |
--------------------------------------------------------------------------------
| | | | 1-12/09 | 1-12/08 |
--------------------------------------------------------------------------------
| NET SALES | | | 146,705 | 293,015 |
--------------------------------------------------------------------------------
| Increase (+)/decrease (-) in inventories of | -8,321 | 7,885 |
| finished goods and work in progress | | |
--------------------------------------------------------------------------------
| Other operating income | | | 1,154 | 2,608 |
--------------------------------------------------------------------------------
| Raw materials and services | | | -95,982 | -203,082 |
--------------------------------------------------------------------------------
| Expenditure on employment-related benefits | -31,968 | -48,175 |
--------------------------------------------------------------------------------
| Depreciation and amortisation | | -5,244 | -5,037 |
--------------------------------------------------------------------------------
| Other operating expenses | | | -22,087 | -33,586 |
--------------------------------------------------------------------------------
| OPERATING RESULT | | | -15,744 | 13,628 |
--------------------------------------------------------------------------------
| Share of results of associated companies | 71 | 91 |
--------------------------------------------------------------------------------
| Financial income and expenses | | 123 | -7,462 |
--------------------------------------------------------------------------------
| RESULT BEFORE TAXES | | -15,550 | 6,258 |
--------------------------------------------------------------------------------
| Income taxes | | | -4,700 | -1,907 |
--------------------------------------------------------------------------------
| NET RESULT FOR THE PERIOD | | | -20,251 | 4,351 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER ITEMS INCLUDED IN | | | | |
| TOTAL COMPREHENSIVE INCOME: | | | | |
--------------------------------------------------------------------------------
| Translation differences associated with | | -56 | 871 |
| a foreign unit | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -20,307 | 5,222 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted and undiluted earnings per share | -0.72 | 0.16 |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET (EUR 1,000)
--------------------------------------------------------------------------------
| | | IFRS | IFRS |
--------------------------------------------------------------------------------
| ASSETS | | 31.12.09 | 31.12.08 |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Intangible assets | | 5,678 | 5,240 |
--------------------------------------------------------------------------------
| Goodwill | | 3,440 | 3,683 |
--------------------------------------------------------------------------------
| Property, plant and equipment | | 24,983 | 28,441 |
--------------------------------------------------------------------------------
| Financial assets | | 110 | 109 |
--------------------------------------------------------------------------------
| Holdings in associated companies | | 1,790 | 1,889 |
--------------------------------------------------------------------------------
| Non-current receivables | | 3,299 | 1,820 |
--------------------------------------------------------------------------------
| Deferred tax assets | | 1,255 | 3,121 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | | 40,555 | 44,303 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Inventories | | 67,920 | 88,308 |
--------------------------------------------------------------------------------
| Trade receivables | | 21,409 | 22,155 |
--------------------------------------------------------------------------------
| Income tax receivables | | 243 | 5,023 |
--------------------------------------------------------------------------------
| Other current receivables | | 3,508 | 6,916 |
--------------------------------------------------------------------------------
| Liquid assets | | 10,626 | 8,095 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | | 103,707 | 130,497 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | | 144,262 | 174,800 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | | 7,000 | 7,000 |
--------------------------------------------------------------------------------
| Other reserves | | 18,615 | -646 |
--------------------------------------------------------------------------------
| Translation differences | | -870 | -1,725 |
--------------------------------------------------------------------------------
| Retained earnings | | 36,868 | 62,484 |
--------------------------------------------------------------------------------
| EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS | 61,612 | 67,113 |
--------------------------------------------------------------------------------
| Minority interest | | 0 | 0 |
--------------------------------------------------------------------------------
| TOTAL EQUITY | | 61,612 | 67,113 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | | 23,973 | 26,140 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | | 464 | 556 |
--------------------------------------------------------------------------------
| Other non-current liabilities | | 590 | 861 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT LIABILITIES | | 25,026 | 27,556 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | | 27,939 | 46,769 |
--------------------------------------------------------------------------------
| Provisions | | 4,935 | 6,058 |
--------------------------------------------------------------------------------
| Tax liabilities for the period | | 37 | 76 |
--------------------------------------------------------------------------------
| Trade creditors and other current liabilities | 24,713 | 27,228 |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES | | 57,624 | 80,131 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | | 144,262 | 174,800 |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT (EUR 1,000)
--------------------------------------------------------------------------------
| | | | IFRS | IFRS |
--------------------------------------------------------------------------------
| | | | 1-12/09 | 1-12/08 |
--------------------------------------------------------------------------------
| BUSINESS OPERATIONS: | | | | |
--------------------------------------------------------------------------------
| Net result for the period | | | -20,251 | 4,351 |
--------------------------------------------------------------------------------
| Adjustments: | | | | |
--------------------------------------------------------------------------------
| Financial income and expenses | | | -123 | 7,462 |
--------------------------------------------------------------------------------
| Share of the results of associated companies | -71 | -91 |
--------------------------------------------------------------------------------
| Depreciation and amortisation | | | 5,244 | 5,037 |
--------------------------------------------------------------------------------
| Income taxes | | | 4,534 | 2,378 |
--------------------------------------------------------------------------------
| Other adjustments | | | 927 | -1,827 |
--------------------------------------------------------------------------------
| Cash flow before change in working capital | -9,738 | 17,308 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in working capital: | | | | |
--------------------------------------------------------------------------------
| Change in non-interest-bearing receivables | 2,866 | 7,086 |
--------------------------------------------------------------------------------
| Change in inventories | | | 20,388 | -22,673 |
--------------------------------------------------------------------------------
| Change in non-interest-bearing creditors | -2,256 | -9,718 |
--------------------------------------------------------------------------------
| Change in provisions for liabilities and charges | -1,123 | 1,717 |
--------------------------------------------------------------------------------
| Interest received | | | 165 | 281 |
--------------------------------------------------------------------------------
| Interest paid | | | -2,226 | -2,450 |
--------------------------------------------------------------------------------
| Other financial items | | | 1,898 | -4,966 |
--------------------------------------------------------------------------------
| Income taxes paid | | | 1,230 | -7,355 |
--------------------------------------------------------------------------------
| NET CASH FLOW FROM BUSINESS OPERATIONS (A) | 11,203 | -20,770 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INVESTMENTS | | | | |
--------------------------------------------------------------------------------
| Investments in tangible and intangible assets | -2,008 | -8,509 |
--------------------------------------------------------------------------------
| Investments in other assets | | 0 | 27 |
--------------------------------------------------------------------------------
| Repayment of loan receivables | | | 0 | 0 |
--------------------------------------------------------------------------------
| Dividends received | | | 0 | 0 |
--------------------------------------------------------------------------------
| CASH OUTFLOW FROM INVESTMENT ACTIVITIES (B) | -2,008 | -8,481 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FINANCING | | | | |
--------------------------------------------------------------------------------
| Hybrid loan | | | 19,000 | 0 |
--------------------------------------------------------------------------------
| Interest paid, hybrid loan | | | -1,409 | 0 |
--------------------------------------------------------------------------------
| Withdrawal/repayment of current loans | -18,770 | 29,422 |
--------------------------------------------------------------------------------
| Change in current interest-bearing receivables | 11 | 309 |
--------------------------------------------------------------------------------
| Withdrawal/repayment of non-current loans | -2,438 | 10,253 |
--------------------------------------------------------------------------------
| Payment of finance lease liabilities | | -61 | 122 |
--------------------------------------------------------------------------------
| Change in non-current receivables | | -201 | -1 417 |
--------------------------------------------------------------------------------
| Dividends paid | | | -2,795 | -13,976 |
--------------------------------------------------------------------------------
| NET CASH OUTFLOW FROM FINANCING (C) | -6,663 | 24,713 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid assets (A+B+C) | | 2,531 | -4,538 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets on 1 Jan | | | 8,095 | 12,633 |
--------------------------------------------------------------------------------
| Liquid assets on 31 Dec | | | 10,626 | 8,095 |
--------------------------------------------------------------------------------
RECONCILIATION OF CHANGES IN EQUITY (EUR 1,000)
--------------------------------------------------------------------------------
| A = Share Capital | | | | | |
--------------------------------------------------------------------------------
| B = Share premium and other reserves | | | | |
--------------------------------------------------------------------------------
| C = Translation | | | | | |
| differences | | | | | |
--------------------------------------------------------------------------------
| D = Own shares | | | | | |
--------------------------------------------------------------------------------
| E = Retained earnings | | | | | |
--------------------------------------------------------------------------------
| F = Total capital and | | | | | |
| reserves | | | | | |
--------------------------------------------------------------------------------
| | EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS |
--------------------------------------------------------------------------------
| | A | B | C | D | E | F |
--------------------------------------------------------------------------------
| EQUITY 1 JAN | 7,000 | 20 | -72 | -665 | 60,830 | 67,113 |
| 2009 | | | | | | |
--------------------------------------------------------------------------------
| Direct posting | | | | | -1,409 | -1,409 |
| to retained | | | | | | |
| earnings *) | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -2,795 | -2,795 |
| distribution | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | | |
| the company's | | | | | | |
| own shares | | | | | | |
--------------------------------------------------------------------------------
| Other changes | | 19,010 | | | | 19,010 |
--------------------------------------------------------------------------------
| Total | | | -56 | | -20,25 | -20,30 |
| comprehensive | | | | | 1 | 7 |
| income for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| EQUITY 31 DEC | 7,000 | 19,030 | -128 | -665 | 36,375 | 61,612 |
| 2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY 1 JAN | 7,000 | 20 | -943 | 0 | 70,455 | 76,532 |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
| Direct posting | | | | | | |
| to retained | | | | | | |
| earnings *) | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -13,97 | -13,97 |
| distribution | | | | | 6 | 6 |
--------------------------------------------------------------------------------
| Purchase of | | | | -665 | | -665 |
| the company's | | | | | | |
| own shares | | | | | | |
--------------------------------------------------------------------------------
| Other changes | | | | | | |
--------------------------------------------------------------------------------
| Total | | | 871 | | 4,351 | 5,222 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| EQUITY 31 DEC | 7,000 | 20 | -72 | -665 | 60,830 | 67,113 |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
| *) Consists of interest and other financial expenses paid for the hybrid |
| loan classified as equity. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | | 31.12.09 | 31.12.08 |
--------------------------------------------------------------------------------
| 1. LEASING COMMITMENTS (EUR | | | 6 176 | 5 903 |
| 1,000) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2. CONTINGENT LIABILITIES (EUR | | | 31.12.09 | 31.12.08 |
| 1,000) | | | | |
--------------------------------------------------------------------------------
| Guarantees given on behalf of others | | 951 | 1,090 |
--------------------------------------------------------------------------------
| Repurchase commitments | | | | 4,111 | 4,049 |
--------------------------------------------------------------------------------
| Other commitments | | | | 2,080 | 1,443 |
--------------------------------------------------------------------------------
| TOTAL | | | | 7,142 | 6,582 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. PROVISIONS (EUR | | Guarantee provision | | |
| 1,000) | | | | |
--------------------------------------------------------------------------------
| 1.1.2009 | | | 6,058 | | |
--------------------------------------------------------------------------------
| Increase | | | 972 | | |
--------------------------------------------------------------------------------
| Used provisions | | | -2,095 | | |
--------------------------------------------------------------------------------
| 31.12.2009 | | | 4,935 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES AND | | | | 31.12.09 | 31.12.08 |
| RATIOS | | | | | |
--------------------------------------------------------------------------------
| R&D expenditure, MEUR | | | 4.9 | 7.6 |
--------------------------------------------------------------------------------
| Capital expenditure, MEUR | | | 2.0 | 8.5 |
--------------------------------------------------------------------------------
| as % of turnover | | | | 1.4 | 2.9 |
--------------------------------------------------------------------------------
| Average number of | | | | 858 | 1 044 |
| employees | | | | | |
--------------------------------------------------------------------------------
| Order books, MEUR | | | | 20.3 | 23.9 |
--------------------------------------------------------------------------------
| Equity ratio, % | | | | 42.8 | 38.4 |
--------------------------------------------------------------------------------
| Diluted and undiluted earnings per share, | | -0.72 | 0.16 |
| EUR | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | | | | 2.20 | 2.40 |
--------------------------------------------------------------------------------
FORMULAE FOR FINANCIAL INDICATORS
Average number of employees:
Average of the number of personnel at the end of each month. The calculation has
been adjusted for part-time employees.
Equity ratio, %:
Equity + minority interest
----------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share:
Earnings before taxes - taxes (incl. change in deferred taxes) -/+ minority
interest
------------------------------------------------------------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Capital and reserves
----------------------------------------------
Number of shares on the balance sheet date, adjusted for share issues
--------------------------------------------------------------------------------
| ORDER INTAKE, MEUR | | | | 1-12/09 | 1-12/08 |
--------------------------------------------------------------------------------
| Ponsse Group | | | | 143,5 | 247,6 |
--------------------------------------------------------------------------------
The financial statements have been prepared in accordance with the IFRS
recognition and measurement principles; however, it does not comply with all of
the requirements of IAS 34. From 1.1.2009, the Group has applied the following
new and revised standards: IFRS 8, Operating Segments, and IAS 1, Presentation
of Financial Statements. The amendment of IFRS 8 will not materially change the
information shown in these segments because the Group's earlier segment-based
reporting was based on the Group's internal reporting structures. The amendment
of IAS 1 will have an impact on the presentation method of the profit and loss
account and the changes in equity.
The accounting policies for the financial statements are compatible with those
for the financial statements prepared on 31 December 2008.
The above figures have been audited.
The above figures have been rounded off and may therefore differ from those
given in the official financial statements.
This communication includes future-oriented statements that are based on the
assumptions currently known by the company's management and its current
decisions and plans. Although the management believes that the future
expectations are well founded, there is no certainty that these expectations
will prove to be correct. This is why the results may significantly deviate from
the assumptions included in the future-oriented statements as a result of, among
other things, changes in the economy, markets, competitive conditions,
legislation or currency exchange rates.
Vieremä, 16 February 2010
PONSSE PLC
Juho Nummela
President and CEO
FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 20 768 8914 or +358 400 495 690
Petri Härkönen, CFO, tel. +358 20 768 8608 or +358 50 409 8362
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.ponsse.com
