PONSSE?S IFRS-COMPLIANT INTERIM REPORT FOR 1 JANUARY - 31 MARCH 2005
PONSSE OYJ STOCK EXCHANGE RELEASE 20 APRIL 2005, AT 9:00 A.M.
PONSSES IFRS-COMPLIANT INTERIM REPORT FOR 1 JANUARY - 31 MARCH 2005
- Consolidated turnover: EUR 59.4 million (Q1/2004: EUR 44.0 million)
- Exports and foreign business operations accounted for 60.3% of turnover (58.9%)
- Operating profit: EUR 7.2 million (EUR 4.9 million)
- Operating profit accounted for 12.2% of turnover (11.0%)
- Profit after financial items: EUR 7.3 million (Q1/2004, EUR 5.0 million)
- Earnings per share: EUR 0.39 (EUR 0.23)
- Equity ratio: 38.8% (38.4%)
- Order books on 31 March 2005: EUR 56.1 million (31 March 2004: EUR 38.9 million)
Arto Tiitinen, President and CEO, states the following:
- Our business performance for the first quarter progressed in line with
our targets in both home and international markets. We began to take measures to
establish a subsidiary in Russia in order to ensure business growth and customer
support. During the report period, Ponsse divested its Information Systems
Production in Kajaani to its subsidiary Epec Oy, with the aim of making Epec Oy a
strong control and information system supplier. The divestment will also open
doors for a broader customer base outside the forest industry.
- Thanks to larger production volumes and successful exports, we were
able to improve our operating profit.
- In co-operation with the municipality of Vieremä, we began to implement
our investment programme for 2005 and 2006 aimed at the possibility to double the
Vieremä plants production capacity to meet demand. Our order books hit historic
highs at the end of March.
IAS/IFRS-COMPLIANT REPORTING
Since 1 January 2005, Ponsse Group has applied the International Financial
Reporting Standards (IFRS) in its financial reporting. Related, preliminary data
published in a stock exchange release of 22 March 2005, IFRS-compliant figures for
2004 are used as comparative data in this interim report. The accounting
principles in this interim report are the same as those applied in the March
release. The data in this interim report are based on unaudited figures.
TURNOVER
Consolidated turnover rose by 35.2 per cent over Q1/2004, to EUR 59.4 million (EUR
44.0 million), due to growth in deliveries, improvements in the used machines
business and a new subsidiary joining the Group.
International business operations accounted for 60.3 per cent (58.9 per cent) of
turnover. Demand was brisk for export forest machines.
Domestic sales accounted for 39.7 per cent (41.1. per cent) of turnover. During
the report period, Ponsse strengthened its market position in Finland.
PROFIT PERFORMANCE
Ponsse improved its year-on-year operating profit by 49 per cent, to EUR 7.2
million (IFRS: EUR 4.9 million in Q1/2004), accounting for 12.2 per cent of
turnover (11.0 per cent). In comparison with FAS-compliant (Finnish Accounting
Standards) operating profit for Q1/2004, the figure improved by 50.3 per cent.
Return on investment (ROI) stood at 42.8 per cent (33.5 per cent).
Net financial income came to EUR 30 thousand (EUR 0.2 million). Income and
expenses resulting from currency risk hedging were included in financial items.
The period saw no entries of extraordinary items.
Profit for the period totalled EUR 5.4 million (EUR 3.2 million). Earnings per
share were EUR 0.39 (EUR 0.23).
BALANCE SHEET AND FINANCIAL POSITION
On 31 March 2005, consolidated balance sheet total amounted to EUR 98.4 million
(EUR 81.9 million). Interest-bearing liabilities totalled EUR 26.5 million (EUR
26.5 million) and net liabilities EUR 16.8 million (EUR 16.3 million). Equity
ratio stood at 38.8 per cent (38.4 per cent). Cash in hand and at banks rose to
EUR 10.7 million (EUR 10.3 million).
Reported cash flow from business operations totalled EUR 4.6 million (EUR 7.3
million), while that from investing activities was EUR -1.1 million (EUR -0.5
million).
ORDER INTAKE AND ORDER BOOKS
The order intake for the period totalled EUR 77.0 million (EUR 41.9 million) while
period-end order books were valued at EUR 56.1 million (EUR 38.9 million), order
books including dealers minimum purchase commitments, based on previous practice.
SUBSIDIARIES
On 1 March 2005, Jouni Matikainen, B.Sc./Automation, took up his duties as Epec
Oys Managing Director. He was previously employed by ABB.
CAPITAL AND R&D EXPENDITURE
During the period, capital expenditure totalled EUR 1.1 million (EUR 0.6 million)
and R&D expenses EUR 1.1 million (EUR 0.7 million).
The period saw the launch of a new Elk forwarder and the third crane option
available for the smaller Beaver harvester in response to increasing thinning
operations. The period also saw the introduction of new equipment that improves
forest-machine operators safety and machine ergonomics.
PERSONNEL
The Group had an average staff of 675 (567) during the period and employed 683
(573) personnel at the period-end.
ANNUAL GENERAL MEETING AND ADMINISTRATION
The Annual General Meeting (AGM) held in Iisalmi on 15 March 2005 decided to
distribute a per-share dividend of EUR 0.20, totalling EUR 2.8 million, the payout
date being 30 March 2005.
It re-elected Nils Hagman, Ilkka Kylävainio, Seppo Remes, Mirja Ryynänen, Einari
Vidgrén and Juha Vidgrén to the Board of Directors and Ernst & Young Oy as the
Groups auditor, with Heikki Laitinen, Authorised Public Accountant, acting as the
principal auditor.
At its organising meeting, the Board elected Einari Vidgrén as Chairman and Juha
Vidgrén Vice Chairman. The Board has not set up any special committees comprising
its members, considering the extent of the Groups business and the size of the
Board.
SHARE PERFORMANCE
The trading volume of Ponsse Oyj shares for 1 January-31 March 2005 totalled
855,486, accounting for 6.1 per cent of the total number of shares. Share turnover
came to EUR 14.9 million, with the periods lowest and highest price amounting to
EUR 14.50 and EUR 19.51, respectively. On 31 March 2005, the share closed at EUR
15.14 and the market capitalisation totalled EUR 212.0 million.
PROSPECTS
The company expects cut-to-length harvesting to continue to account for
an increasing share of total harvesting. It is estimated that thinning operations
will account for a growing share in Finland, which will increase demand for forest
machines.
During the current year, Ponsse will expand its international distribution
network. The companys order books reached historic highs at the end of the
period. Consolidated turnover and operating profit for 2005 as a whole are
expected to exceed the previous years figures, due to favourable market prospects
and the companys own measures.
PONSSE GROUP
CONSOLIDATED PROFIT AND LOSS ACCOUNT (EUR 1,000)
IFRS FAS IFRS IFRS
Q1/05 Q1/04 change Q1/04
TURNOVER 59,422 43,874 86 43,960
Increase (+)/decrease (-) in stocks of 3,058 1,826 0 1,826
finished goods and work in progress
Other operating income 422 371 0 371
Raw materials and services -41,822 -30,410 60 -30,350
Staff costs -8,434 -6,649 0 -6,649
Depreciation -831 -655 -102 -757
Other operating expenses -4,588 -3,550 0 -3,550
OPERATING PROFIT 7,227 4,807 44 4,851
Share of results of associated
companies 17 2 0 2
Financial income and
expenses 30 201 -14 187
PROFIT BEFORE APPROPRIATIONS AND TAXES 7,274 5,010 30 5,040
Income taxes -1,797 -1,787 -9 -1,796
Minority interest -33 0 0 0
PROFIT FOR THE PERIOD 5,444 3,223 21 3,244
CONSOLIDATED PROFIT AND LOSS ACCOUNT (EUR 1,000)
FAS IFRS IFRS
Q1-Q4/04 change Q1-Q4/04
TURNOVER 190,002 345 190,347
Increase (+)/decrease (-) in stocks of 968 0 968
finished goods and work in progress
Other operating income 1,453 0 1,453
Raw materials and services -126,136 136 -126,000
Staff costs -26,917 0 -26,917
Depreciation -2,676 -413 -3,089
Other operating expenses -17,062 0 -17,062
OPERATING PROFIT 19,632 68 19,700
Share of results of associated
companies 251 0 251
Financial income and
expenses -730 -48 -778
PROFIT BEFORE APPROPRIATIONS AND TAXES 19,153 20 19,173
Income taxes -5,624 -6 -5,630
Minority interest -11 0 -11
PROFIT FOR THE PERIOD 13,518 14 13,532
CONSOLIDATED BALANCE SHEET (EUR 1,000)
IFRS FAS IFRS IFRS
ASSETS 31 March 31 March change 31 March
05 04 04
FIXED AND OTHER NON-CURRENT
ASSETS
Intangible assets 5,618 1,617 0 1,617
Tangible assets 18,587 15,347 862 16,209
Financial assets 25 22 0 22
Holdings in associated
companies 845 579 0 579
Non-current receivables 105 219 0 219
Deferred tax assets 891 532 214 746
TOTAL FIXED AND OTHER NON-
CURRENT ASSETS 26,071 18,316 1,076 19,392
CURRENT ASSETS
Stocks 37,328 33,793 606 34,399
Trade receivables 22,583 16,941 0 16,941
Other current receivables 1,766 856 0 856
Cash in hand and at banks 10,652 10,273 0 10,273
TOTAL CURRENT ASSETS 72,329 61,863 606 62,469
TOTAL ASSETS 98,400 80,179 1,682 81,861
CAPITAL AND RESERVES AND
LIABILITIES
CAPITAL AND RESERVES
Share capital 7,000 3,500 0 3,500
Share premium account 0 2,544 0 2,544
Other reserves 20 17 0 17
Retained earnings 25,590 23,615 -957 22,658
Profit for the period 5,444 3,223 21 3,244
Other capital and reserves -711 -552 0 -552
Capital and reserves owned by parent 37,343 32,347 -936 31,411
company shareholders
Minority interest 451 0 0 0
TOTAL CAPITAL AND RESERVES 37,794 32,347 -936 31,411
NON-CURRENT CREDITORS
Non-current interest-bearing
liabilities 23,348 22,258 1,399 23,657
Deferred tax liabilities 717 778 176 954
Other non-current creditors 335 120 492 612
TOTAL NON-CURRENT CREDITORS 24,400 23,156 2,067 25,223
CURRENT CREDITORS
Current interest-bearing liabilities 3,170 2,583 256 2,839
Trade creditors 15,302 9,251 0 9,251
Tax liabilities for the
period 1,108 1,383 0 1,383
Other current creditors 12,216 9,141 295 9,436
Provisions 4,410 2,318 0 2,318
TOTAL CURRENT CREDITORS 36,206 24,676 551 25,227
TOTAL LIABILITIES 60,606 47,832 2,618 50,450
TOTAL CAPITAL AND RESERVES
AND LIABILITIES 98,400 80,179 1,682 81,861
CONSOLIDATED BALANCE SHEET (EUR 1,000)
FAS IFRS IFRS
ASSETS 31 Dec. change 31 Dec.
04 04
FIXED AND OTHER NON-CURRENT
ASSETS
Intangible assets 6,250 0 6,250
Tangible assets 17,119 577 17,696
Financial assets 25 0 25
Holdings in associated
companies 829 0 829
Non-current receivables 107 0 107
Deferred tax assets 455 153 608
TOTAL FIXED AND OTHER NON-
CURRENT ASSETS 24,785 730 25,515
CURRENT ASSETS
Stocks 35,722 387 36,109
Trade receivables 19,228 0 19,228
Other current receivables 649 0 649
Cash in hand and at banks 15,706 0 15,706
TOTAL CURRENT ASSETS 71,305 387 71,692
TOTAL ASSETS 96,090 1,117 97,207
CAPITAL AND RESERVES AND
LIABILITIES
CAPITAL AND RESERVES
Share capital 7,000 0 7,000
Other reserves 19 0 19
Retained earnings 15,851 -958 14,893
Profit for the period 13,518 14 13,532
Other capital and reserves -838 0 -838
Capital and reserves owned by parent 35,550 -944 34,606
company shareholders
Minority interest 419 0 419
TOTAL CAPITAL AND RESERVES 35,969 -944 35,025
NON-CURRENT CREDITORS
Non-current interest-bearing
liabilities 22,885 1,052 23,937
Deferred tax liabilities 706 112 818
Other non-current creditors 121 215 336
TOTAL NON-CURRENT CREDITORS 23,712 1,379 25,091
CURRENT CREDITORS
Current interest-bearing liabilities 7,986 367 8,353
Trade creditors 13,356 0 13,356
Tax liabilities for the
period 2,343 0 2,343
Other current creditors 8,571 315 8,886
Provisions 4,153 0 4,153
TOTAL CURRENT CREDITORS 36,409 682 37,091
TOTAL LIABILITIES 60,121 2,061 62,182
TOTAL CAPITAL AND RESERVES
AND LIABILITIES 96,090 1,117 97,207
CONSOLIDATED CASH FLOW STATEMENT (EUR 1,000)
IFRS IFRS IFRS
Q1/05 Q1/04 Q1-Q4/04
BUSINESS OPERATIONS:
Profit for the period 5,444 3,245 13,532
Adjustments:
Financial income and
expenses -30 -188 778
Share of results of associated
companies -17 -2 -251
Depreciation 831 758 3,089
Deferred taxes -301 -324 -227
Income taxes 2,098 2,119 5,857
Other adjustments 59 18 282
Cash flow before change in working
capital 8,084 5,626 23,060
Change in working capital:
Increase (-)/decrease (+) in current
non-interest bearing
receivables -4,472 26 -2,145
Increase (-) / decrease (+) in stocks -1,219 -2,067 -3,778
Increase (+) / decrease (-) in current
non-interest-bearing
creditors 5,414 4,329 8,658
Change in provisions for liabilities 257 34 1,869
and charges
Interest received 62 414 227
Interest paid -402 -334 -661
Other financial items 182 16 -312
Income taxes paid -3,299 -770 -4,784
NET CASH FLOW FROM BUSINESS
OPERATIONS (A) 4,607 7,274 22,134
INVESTMENTS
Investment in tangible and intangible
assets -1,090 -578 -9,029
Investment in other assets 0 59 0
CASH OUTFLOW FROM INVESTING
ACTIVITIES (B) -1,090 -519 -9,029
FINANCING
Withdrawal of current loans
Repayment of current loans -5,004 -1,981 3,673
Increase (-) / decrease in current 0 -12 77
interest-bearing receivables
Withdrawal / repayment of non-current -590 9,077 9,444
loans
Payment of finance lease liabilities -179 -130 -269
Increase (-) / decrease (+) in non-
current receivables 2 -1 111
Paid dividends -2,800 -14,000 -21,000
NET CASH OUTFLOW FROM
FINANCING (C) -8,571 -7,047 -7,964
Increase (-) / decrease (+)
in liquid assets (A+B+C) -5,054 -292 5,141
Liquid assets 1 Jan. 15,706 10,565 10,565
Liquid assets 31 March/31
December 10,652 10,273 15,706
RECONCILIATION OF CAPITAL AND RESERVES (EUR 1,000)
31 March 31 March 31 Dec.
05 04 04
Capital and reserves under
FAS 38,385 32,347 35,550
IAS 17 Leases and IAS 18 Revenue -459 -738 -530
IAS 16 Property, Plant and Equipment -841 -841 -841
IAS 2 Inventories 400 606 387
IAS 12 Income Taxes 19 38 40
IFRS 3 Business Combinations: Goodwill -161 0 0
Capital and reserves under IFRS 37,343 31,412 34,606
RECONCILIATION OF PROFIT FOR THE PERIOD (EUR 1,000)
31 March 31 March 31 Dec.
05 04 04
Profit for the period under FAS 5,542 3,224 13,518
IAS 17 Leases and IAS 18 Revenue 72 67 276
IAS 2 Inventories 13 -37 -256
IAS 12 Income Taxes -22 -9 -6
IFRS 3 Business Combinations: Goodwill -161 0 0
Profit for the period under IFRS 5,444 3,245 13,532
SEGMENT INFORMATION (EUR 1,000)
Q1/05 Q1/04 Q1-Q4/04
TURNOVER
Nordic countries 46,419 33,212 132,039
Rest of Europe 15,206 14,014 54,838
North and South America 5,566 5,056 28,263
Inter-segment turnover -7,876 -8,371 -25,289
Unallocated 107 49 496
GROUP TOTAL 59,422 43,960 190,347
Q1/05 Q1/04 Q1-Q4/04
OPERATING PROFIT
Nordic countries 5,819 4,394 14,642
Rest of Europe 1,912 1,436 7,049
North and South America 402 -82 1,864
Unallocated -906 -897 -3,855
GROUP TOTAL 7,227 4,851 19,700
PLEDGES GIVEN, CONTINGENT AND OTHER LIABILITIES (EUR 1,000)
31 March 31 March 31 Dec.
05 04 04
1. FOR OWN DEBT
Debts for which mortgages have been pledged as
collateral
Loans from financial
institutions 0 10,763 1,261
Mortgages given on land and buildings 1,126 2,522 1,126
Chattel mortgages given 820 1,947 820
TOTAL MORTGAGES GIVEN AS COLLATERAL 1,946 4,469 1,946
2. LEASING COMMITMENTS (EUR
1,000) 397 484 445
3. CONTINGENT LIABILITIES ON BEHALF OF GROUP COMPANIES (EUR 1,000)
Guarantees given on behalf of
Group companies 800 1,052 763
4. LIABILITIES BASED ON DERIVATIVE CONTRACTS (EUR 1,000)
4.1 Nominal values
Currency derivatives
Options 0 3,882 0
Forward contracts 14,181 9,037 10,616
4.2 Market values
Currency derivatives
Options 0 -14 0
Forward contracts -82 184 136
5. OTHER CONTINGENT LIABILITIES (EUR 1,000)
Guarantees given on others 817 731 831
behalf
Repurchase commitments 7,995 7,621 8,677
Other commitments 0 0 0
Total 8,812 8,352 9,508
KEY FIGURES AND RATIOS 31 March 31 March 31 Dec.
05 04 04
R&D expenditure, MEUR 1.1 0.7 3.7
Capital expenditure, MEUR 1.1 0.6 9.0
% of turnover 1.83 1.31 4.74
Average personnel 675 567 607
Order books, MEUR 56.1 38.9 44.4
Equity ratio, % 38.8 38.4 36.1
Earnings per share, EUR 0.39 0.23 0.97
Equity per share, EUR 2.67 2.24 2.47
Income taxes based on profit for the period are included in the Profit and Loss
Account and earnings per share.
ORDER INTAKE (MEUR) Q1/05 Q1/04 Q1-Q4/04
Ponsse Group 77.0 41.9 201.7
Data in this interim report are based on unaudited figures.
Since the above tables are based on rounded figures, they may differ from those
given in the official financial statements.
Vieremä, 20 April 2005
Arto Tiitinen
President and CEO
FOR MORE INFORMATION, PLEASE CONTACT:
Arto Tiitinen, President and CEO, tel. +358 (0)20 768 4621 or +358 (0)400 566 875
Mikko Paananen, CFO, tel. +358 (0)20 768 8648 or +358 (0)400 817 036
DISTRIBUTION
Helsinki Stock Exchange
Major media
www.ponsse.com
