EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY TO JUNE 2009
(Thomson Reuters ONE) - STOCK EXCHANGE RELEASEFree for publication on August 7, 2009 at 8.00 am. (CEST+1)EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY TO JUNE 20091H 2009 OPERATING RESULT WITHOUT NON-RECURRING ITEMS WAS POSITIVEDESPITE OF SLIGHTLY NEGATIVE 2Q 2009SUMMARY 2Q 2009- Net sales amounted to EUR 37.4 million (EUR 41.0 million, 2Q 2008),representing -8.8 per cent decrease year-on-year.- Operating loss from business operations amounted to EUR -0.4million and the non-recurring restructuring costs totaled to EUR -0.7million, resulting in a total operating loss of EUR -1.1 million (EUR-13.3 million, 2Q 2008)- Operating cash flow amounted to EUR -1.0 million (EUR -9.0 million,2Q 2008). The net cash flow amounted to EUR -2.5 million (EUR -10.9million, 2Q 2008)- Cash and other liquid assets totaled to EUR 60.3 million (74.8million, 2Q 2008)- Equity ratio remained at a high level of 69.2% (69.9%, 2Q 2008)- Earnings per share were EUR -0.02 (EUR -0.16, 2Q 2008)The market environment prevailed challenging reflecting to EB's netsales, which decreased by -12.7 per cent compared to the firstquarter 2009. Operating loss from business operations withoutnon-recurring costs in 2Q 2009 amounted to EUR -0.4 million (EUR 0.9million in 1Q 2009).In June EB appointed M.Sc (Eng.), M.Sc (Econ.) Jukka Harju as CEO ofthe Company. Along with the assignment, Harju resigned from themembership of the EB Board of Directors and from the chairmanship ofthe Board's committee for Automotive Segment. Jorma Halonen, memberof EB Board of Directors, was elected as the new Chairman of theAutomotive committee. EB's former CEO Pertti Korhonen resigned as ofJune 3, 2009.EB's Board of Directors approved EB's strategic guidelines during thesecond quarter of 2009. EB continues to focus on two BusinessSegments - Automotive and Wireless, with the long-term target ofbeing a global leading provider of solutions, products and servicesin its selected businesses. Along with its long-term objective, EB'smost important short-term objective is to further improve theprofitability.EB's profit improvement and cost structure adjustment programlaunched in fourth quarter 2008 targeting in total for EUR 40 millionannual cost savings in comparison to the cost level of the first halfof 2008 has been executed in full.EB'S CEO JUKKA HARJU:"Our operating profit during January - June 2009 improvedsignificantly from July - December 2008 but is still not at asatisfactory level. Our most important objective continues to be toimprove profitability further and to achieve positive operatingprofit development. "FINANCIAL PERFORMANCE DURING JANUARY - JUNE 2009(Comparisons are given to January - June 2008, unless otherwiseindicated)EB's net sales during January - June 2009 decreased -9.2 per cent toEUR 80.2 million (EUR 88.3 million). Operating profit from businessoperations amounted to EUR 0.5 million and the non-recurring coststotaled to EUR -1.6 million, resulting to the operating loss of EUR-1.1 million (EUR -21.4 million).The Automotive Business Segment's net sales during January - June2009 amounted to EUR 29.9 million (EUR 28.7 million) representing agrowth of 4.1 per cent. The operating loss reduced to EUR -3.1million (EUR -5.7 million). The net sales and operating profit werelower than expected mainly due to the automotive market situationwhere EB's customers decreased their R&D investments.The Wireless Business Segment's net sales during January - June 2009amounted to EUR 50.0 million (EUR 59.4 million includingextraordinary low-margin through-licensing revenues of approximatelyEUR 3 million), representing a decline of -15.7 per cent compared toJanuary - June 2008. The operating profit, including non-recurringcosts of EUR 1.2 million, was EUR 1.4 million (EUR -15.6 million).The significant improvement of operating result with lower turnoveryear-on-year was mainly due to the execution of the earlier announcedprofitability improvement program.The total R&D investments during the reporting period were EUR 6.9million (EUR 21.6 million), equaling 8.7 per cent of the net sales(24.5 per cent in 2008). The significant reduction of the R&Dinvestments was mostly due to the change of the business model (andconsequent exit from developing own products) in Mobile WiMAX inOctober 2008 and exit from RFID technology business in February 2009.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1H 2009 1H 2008(MEUR) 6 months 6 monthsNET SALES 80.2 88.3OPERATING PROFIT (LOSS) -1.1 -21.4Financial income and expenses -0.5 0.2RESULT BEFORE TAX -1.6 -21.2RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS -2.6 -21.2Result after tax for the year from discontinued 0.0operations 0.1RESULT FOR THE PERIOD -2.6 -21.0TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -2.8 -21.4Result for the period attributable to: Equity holders of the parent -2.6 -21.0Total comprehensive income for the periodattributable to: Equity holders of the parent -2.8 -21.4Earnings per share EUR continuing operations -0.02 -0.16Earnings per share EUR discontinued operations 0.00 0.00Earnings per share EUR continuing and discontinuedoperations -0.02 -0.16- Cash flow from Business Operations amounted to EUR -3.7 million(EUR -16.5 million)- Equity ratio was 69.2% (69.9%)- Net gearing was -35.9% (-30.3%)QUARTERLY FIGURESThe distribution of the Group's overall net sales and profit, MEUR:+-------------------------------------------------------------------+| | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 | 2Q 08 ||---------------------------+-------+-------+-------+-------+-------|| Net sales | 37.4 | 42.8 | 49.5 | 34.5 | 41.0 ||---------------------------+-------+-------+-------+-------+-------|| Operating profit (loss) | -1.1 | 0.0 | -8.5 | -12.9 | -13.3 ||---------------------------+-------+-------+-------+-------+-------|| Operating profit (loss) | -0.4 | 0.9 | -2.8 | -11.3 | -9.9 || without non-recurring | | | | | || costs | | | | | ||---------------------------+-------+-------+-------+-------+-------|| Result before taxes | -0.7 | -0.9 | -11.8 | -14.4 | -13.6 ||---------------------------+-------+-------+-------+-------+-------|| Result for the period | -1.6 | -1.1 | -14.0 | -14.6 | -13.5 |+-------------------------------------------------------------------+The distribution of the net sales by Business Segment, MEUR:+-----------------------------------------------------------+| | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 | 2Q 08 ||-------------------+-------+-------+-------+-------+-------|| Automotive | 13.5 | 16.4 | 18.7 | 15.9 | 13.2 ||-------------------+-------+-------+-------+-------+-------|| Wireless | 23.7 | 26.3 | 30.7 | 18.5 | 27.7 ||-------------------+-------+-------+-------+-------+-------|| Corporation total | 37.4 | 42.8 | 49.5 | 34.5 | 41.0 |+-----------------------------------------------------------+The distribution of the net sales by market area, MEUR and %:+--------------------------------------------------+| | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 | 2Q 08 ||----------+-------+-------+-------+-------+-------|| Asia | 2.5 | 4.4 | 3.1 | 0.9 | 2.1 || | 6.8% | 10.3% | 6.2% | 2.6% | 5.2% ||----------+-------+-------+-------+-------+-------|| Americas | 12.5 | 11.9 | 10.9 | 7.1 | 12.7 || | 33.5% | 27.7% | 22.0% | 20.7% | 31.0% ||----------+-------+-------+-------+-------+-------|| Europe | 22.3 | 26.6 | 35.5 | 26.4 | 26.2 || | 59.7% | 62.1% | 71.8% | 76.7% | 63.8% |+--------------------------------------------------+Net sales (external) and operating profit development by BusinessSegments and Other businesses, MEUR:+-----------------------------------------------------------------+| | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 | 2Q 08 ||-------------------------+-------+-------+-------+-------+-------|| Automotive | | | | | || Net sales | 13.5 | 16.4 | 18.7 | 15.9 | 13.2 || Operating profit (loss) | -2.5 | -0.7 | -2.3 | -4.1 | -4.1 ||-------------------------+-------+-------+-------+-------+-------|| Wireless | | | | | || Net sales | 23.7 | 26.3 | 30.7 | 18.5 | 27.7 || Operating profit (loss) | 0.9 | 0.5 | -4.9 | -8.1 | -9.1 ||-------------------------+-------+-------+-------+-------+-------|| Other businesses | | | | | || Net sales | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 || Operating profit (loss) | 0.4 | 0.2 | -1.3 | -0.7 | -0.2 ||-------------------------+-------+-------+-------+-------+-------|| Total | | | | | || Net sales | 37.4 | 42.8 | 49.5 | 34.5 | 41.0 || Operating profit (loss) | -1.1 | 0.0 | -8.5 | -12.9 | -13.3 |+-----------------------------------------------------------------+BUSINESS SEGMENTS' MAIN EVENTS DURING 2Q 2009EB's reporting as from January 1, 2008 has been based on theAutomotive and Wireless Business Segments.AUTOMOTIVEThe Automotive Business Segment consists of in-car software products,navigation software for after market devices (PND, personalnavigation devices) and R&D services for the automotive industry withleading car manufacturers, car electronics suppliers (Tier 1) andautomotive chipset suppliers as customers. By combining its softwareproducts and engineering services EB is creating unique, customizedsolutions for its automotive customers.During the second quarter of 2009, the net sales of the AutomotiveBusiness Segment amounted to EUR 13.5 million (EUR 13.2 million, 2Q2008), representing a year-on-year growth of 1.9 per cent. Operatingloss of EUR -2.5 million (EUR -4.1 million, 2Q 2008) was notsatisfactory even under the challenging market conditions, where EB'scustomers decreased their R&D investments.Automotive Business Segment continued the execution of its announcedstrategy including investments into EB's automotive software productsand progressed globally having now customers in Europe, USA, Japanand China.In April EB announced that the ClarionMiND (Mobile InternetNavigation Device) is based on EB street director navigationsolution. This combines the navigation solution with the latestbrowser technology resulting in a next-generation mobile computerwith an easy to use navigation system and an always-on connection.In May EB announced that EB street director is supporting MicrosoftLive Search for Devices on Microsoft Auto. Microsoft Live Search forDevices enables Internet-based searches and EB street directornavigation technology converts search results into routabledestinations that are plotted directly onto a navigation map.In June EB announced its joint venture with AEV (Audi ElectronicsVenture GmbH). The joint venture will concentrate on the developmentof a software framework and control system for in-vehicleinfotainment systems.WIRELESSThe Wireless Business Segment comprises the following businesses:- Wireless Solutions provides customized solutions and R&D servicesfor wireless industry and other industries utilizing wirelesstechnologies.- Wireless Communications Tools provides test tools for measuring,modeling and emulating radio channel environments.During the second quarter of 2009, the net sales of the WirelessBusiness Segment amounted to EUR 23.7 million (EUR 27.7 million, 2Q2008), representing a decrease of -14.3 per cent. The operatingprofit was EUR 0.9 million including non-recurring costs of EUR 0.5million (EUR -9.1 million in 2Q 2008, including non-recurring costsof EUR 3.4 million). The significant improvement of operating resultwith lower turnover year-on-year was mainly due to the execution ofthe earlier announced profitability improvement program.EB continued to further develop its offering towards customizedsolutions by integrating own and 3rd party technologies and providingown R&D services. Even though the challenging economic situationprevailed in the mobile communication R&D services market, WirelessSolutions business managed to keep the volumes of R&D services atsatisfactory level. The demand for satellite-terrestrial networkdevice solutions continued to be strong during the quarter.The sales of wireless communications emulation and design toolscontinued to be driven mainly by development of LTE systems.In April EB announced that it has decided to close its site in Turkuin October 2009 and focus the Wireless Segment's R&D activities inFinland to the other existing sites in Oulu, Kajaani, Tampere andEspoo. The personnel negotiations were concluded on April 7, 2009.In April EB delivered the industry's first multi-antenna Over-the-Air(OTA) performance testing solution. This tester allows testing offull mobile device functionality and performance in realistic radiochannel environments without any compromises to the performanceverification.In June EB announced a new Mobile Internet Device (MID) referencedesign that offers EB's customers the ability to introduce acustomized MID product to market faster and with lower developmentcosts. The reference device can be tailored to customers' brand andtarget market requirements. This strengthens EB's position as aninnovative solution provider to its customers in the wireless andother industries utilizing wireless technologies.MARKET OUTLOOKAs a consequence of the general economic environment, both automotiveand wireless communication market growth is unlikely before theglobal economic environment starts to improve.The share of electronics and software in cars has grown significantlyduring the past years and it is expected that the trend of increaseduse of software in automotive continues to prevail in the market. Themajority of the innovation and differentiation in the automotiveindustry is brought about by software and electronics. In order toenable faster innovation, to improve quality and developmentefficiency and to reduce complexity related to software, the use ofstandard software solutions is expected to increase. The estimatedautomotive software general market growth rate of some 15 per cent(Frost & Sullivan) is negatively affected by the current downturn ofthe automotive industry. According to Strategy Analytics the globalmarket for automotive electronic systems fell by 3 per cent in 2008and is forecasted to fall by a further 15 per cent in 2009, due tothe global recession. However, the underlying growth of theautomotive software market is expected to continue past the crisisand the cost pressures of the automotive industry are expected toaccelerate the need of productized, efficient software solutions EBis offering. EB's net sales cumulating from the automotive industryis currently driven by the development of new cars and platforms andis not directly dependent on production volumes of the car industry.Nevertheless, cost savings among customers imply cuts in theirshort-term R&D spend and therefore their R&D spend is estimated notto increase in short-term from 1H 2009 which impacts negatively therelevant market of EB.The global mobile infrastructure market is decreasing and theconsolidation of the industry is expected to continue. LTE standardis gaining strength while the momentum of Mobile WiMAX standard hasbeen decreasing. Going forward, EB's business driven by LTE isincreasing while EB's future sales revenues are not materiallydependent on Mobile WiMAX technology. The global mobile phone marketis leveling off and it is expected to decrease in volume inshort-term. The value share is expected to move towards higher-enddue to the increased demand for new features and services. New opensoftware architectures and platforms are creating opportunities forcompanies such as EB with strong integration capabilities.The mobile satellite communication service industry is introducingnew data and mobile communication services with new operators beingformed and traditional ones upgrading their solutions and offerings.Mastering of multi-radio technologies and end-to-end systemarchitectures covering both terminal and network technologies, hasgained importance in the complex wireless technology industry. Thedemand for EB's satellite-terrestrial device solutions is expected tocontinue.The mobile communication R&D services market continues to bechallenging and the continuing price pressure drives increasingoff-shoring in the industry. However, attractive niches continue toexist (OVUM). Because of the economical slowdown, companies willreview their R&D costs and project portfolios resulting in reductionof the overall R&D expenditures and activities during the next coupleof years, resulting in less demand for external R&D services.However, OEMs need to reduce their fixed costs and increaseflexibility. This can create new opportunities for partnering forcompanies such as EB.The overall wireless communications tools market was weak followingthe current economic downturn. However there is a need for advanceddevelopment tools for 3GPP LTE development projects and that isexpected to remain as a driver for the demand in the medium and longterm. EB provides world leading channel emulation tools for thedevelopment of MIMO based 3GPP LTE and other advanced radiotechnologies.RESEARCH AND DEVELOPMENT DURING 2Q 2009EB continued to invest in R&D in the automotive software products andtools and radio channel emulation products.The total R&D investments during the second quarter of 2009 were EUR3.5 million (EUR 10.0 million, 2Q 2008), equaling 9.4 per cent of thenet sales (24.4 % in 2008). The reduction was mostly due to thechange of the business model (and consequent exit from developing ownproducts) in Mobile WiMAX in October 2008 and exit from RFIDtechnology business in February 2009.ACTIONS TO IMPROVE PROFITABILITYEB launched its profit improvement and cost structure adjustmentprogram in fourth quarter of 2008 targeting a total of EUR 40 millionannual cost savings in comparison to the cost level of the first halfof 2008. The cost saving measures totaling to EUR 30 million gainedtheir full impact from the beginning of 2009. The additional measurestargeting to EUR 10 million savings were implemented in full during2Q 2009.The cost saving measures included i.e. changing the business model inMobile WiMAX, adjusting R&D investments downwards, increasing furtherthe resource utilization, reducing high cost subcontracting,reorganizing and adjusting support functions, structural andorganizational restructuring activities, reducing the personnelglobally and temporarily dismissals of employees.OUTLOOK FOR THE SECOND HALF OF 2009The more general market outlook by the businesses is presented underthe Market Outlook section.Improving the profitability further continues to be the main focus ofEB during the second half of 2009.EB expects the net sales during the second half of 2009 to be lowerthan during the first half of 2009 (EUR 80.2 million). The operatingresult in the second half of 2009 is expected to be at the level ofor lower than the operating profit from business operations withoutnon-recurring items in the first half of 2009 (EUR 0.5 million).Due to the holiday period and the nature of R&D services business thethird quarter of 2009 will be weaker than the latter part of thehalf.RISKS AND UNCERTAINTIESEB has identified a number of business, market and finance relatedfactors that can affect the level of sales and profits. Those of thegreatest significance on a short term are those affecting theutilization and chargeability levels and average hourly prices of R&Dservices. On the ongoing financial period the global economicslowdown may affect the demand for the EB's services, solutions andproducts and provide pressure on e.g. volumes and pricing. It mayalso increase the risk for credit losses. As the EB's customer baseconsists mainly of companies operating in the fields of automotiveand telecommunications, the company is exposed to market changes inthese industries. EB believes that expanding the customer base willreduce dependence on individual companies and that the company willthereby be mainly affected by the general business climate inautomotive and telecommunication industries. However, some parts ofEB's business are more sensitive to customer dependency than others.The more general market outlook by the businesses is presented underthe Market Outlook section.EB's operative business risks are mainly related to following items:uncertainties and short visibility on customers' product programdecisions, their make or buy decisions and on the other hand, theirdecisions to continue, downsize or terminate current productprograms, ramping up and down project resources, timing and on theother hand successful utilization of the most important technologiesand components, competitive situation and potential delays in themarkets, timely closing of customer and supplier contracts withreasonable commercial terms, delays in R&D projects, activationsbased on customer contracts, obsolescence of inventories andtechnology risks in product development causing higher than plannedR&D costs. In addition there are typical industry warranty andliability risks involved in selling EB's services, solutions andproducts. Revenues expected to come from new products for existingand new customers include normal timing risks.More information on the risks and uncertainties affecting EB can befound on the Company website at www.elektrobit.comSTATEMENT OF FINANCIAL POSITION AND FINANCINGThe figures presented in the statement of financial position of June30, 2009, are compared with the statement of financial position ofDecember 31, 2008 (EUR 1,000). 6/2009 12/2008Non-current assets 42,748 46,724Current assets 123,196 133,797Total assets 165,944 180,520Share capital 12,941 12,941Other equity 99,725 102,181Total shareholders' equity 112,667 115,123Non-current liabilities 17,604 19,690Current liabilities 35,673 45,708Total shareholders' equity and liabilities 165,944 180,520Net cash flow from operations during the period under review:+ net profit +/- adjustment of accrual basis items EUR +3.6 million+ increase in net working capital EUR -7.1 million+ interest, taxes and dividends EUR -0.1 million= cash generated from operations EUR -3.7 million- net cash used in investment activities EUR -2.1 million- net cash used in financing EUR -2.5 million= net change in cash and cash equivalents EUR -8.3 millionThe amount of accounts and other receivables, booked in currentreceivables, was EUR 60.4 million (EUR 61.9 million on December 31,2008). Accounts and other payables, booked in interest-free currentliabilities, were EUR 29.4 million (EUR 38.7 million on December 31,2008).The amount of non-depreciated consolidation goodwill at the end ofthe period under review was EUR 18.5 million (EUR 18.3 million onDecember 31, 2008).The amount of gross investments in the period under review was EUR1.7 million, consisting of replacement investments. Net investmentsfor the reporting period totaled EUR 1.3 million. The total amount ofdepreciation during the period under review was EUR 5.1 million,including EUR 1.1 million of depreciation owing to businessacquisitions.The amount of interest-bearing debt at the end of the reportingperiod was EUR 19.8 million. The distribution of net financingexpenses on the income statement was as follows:interest, dividend and other financial income EUR 0.5 millioninterest expenses and other financial expenses EUR -0.5 millionforeign exchange gains and losses EUR -0.5 millionEB's equity ratio at the end of the period was 69.2 per cent (64.9per cent at the end of 2008).The figures from the period under review includes the statutoryreserves EUR 3.6 million.EB follows a currency strategy, the objective of which is to ensurethe margins of business operations in changing market circumstancesby minimizing the influence of exchange rates. In accordance with theprinciples of the currency strategy, the agreed customer commitmentsnet cash flow of the currency in question hedged. The net cash flowis determined on the basis of sales receivables, payables, the orderbook and the budgeted net currency cash flow. The hedged foreigncurrency exposure at the end of the review period was equivalent toEUR 10.5 million.PERSONNELEB employed an average of 1636 people between January and June 2009.At the end of June, EB had 1606 employees (1735 at the end of 2008).A significant part of EB's personnel are product developmentengineers.CHANGES IN COMPANY'S MANAGEMENTEB appointed M.Sc (Eng.), M.Sc (Econ.) Jukka Harju as CEO of theCompany as of June 4, 2009. Along with the appointment Harju resignedfrom the membership of the EB's Board of Directors and from theChairmanship of the Board's committee for Automotive Segment. JormaHalonen, member of EB's Board of Directors, was elected as the newChairman of the Automotive committee. In addition to Halonen, SeppoLaine, Staffan Simberg and Erkki Veikkolainen continued to serve asEB Board members and Juha Hulkko continued as the Chairman of theBoard.CEO Pertti Korhonen resigned from EB as of June 3, 2009.EB's Board of Directors and Corporate Executive Board can be foundfrom the Company's Internet pages at:www.elektrobit.com/corporate_governance.FLAGGING NOTIFICATIONSThere were no changes in ownership during the period under reviewthat would have caused flagging notifications which are obligationsfor disclosure in accordance with Chapter 2, section 9 of theSecurities Market Act.Oulu, August 7, 2009EB, Elektrobit CorporationThe Board of DirectorsFurther Information:Jukka HarjuCEOTel. +358 40 344 5466Panu MiettinenCFOTel. +358 40 344 5338Distribution:NASDAQ OMX HelsinkiPrincipal mediaINVITATION TO PRESS CONFERENCE ON EB'S 2Q 2009 RESULTEB, Elektrobit Corporation will hold a press conference for media,analysts and institutional investors concerning the Interim Report 2Q2009 onFriday, August 7, 2009 at 11.00 - 12.00 hours (CEST+1)The conference call will be live audio webcast and it is accessed inthe Internet through WebEx. There will be possibility to presentquestions calling to the following conference call number:+ 358 20699101, PIN: 757344#.The conference will be in English.To join the online meeting1. Go tohttps://elektrobit.webex.com/elektrobit/j.php?ED=111509617&UID=1034101832&PW=338b084d8c665b276a25263f757a722. Enter your name and email address3. Enter the meeting password: Kok!ous1034. Click "Join Now"In technical problems go to /www.elektrobit.com/webcast/instructionsor call number +358 40 344 5148.A recording of the audio webcast will be available after theconference on EB's website www.elektrobit.com/investors. Thepresentation material will be available after the publication of theInterim Report on the same address.CONSENSUS ESTIMATEThe EB consensus estimate made by the analysts who observe thecompany is updated approximately a week before the release of thefinancial report. The latest estimate is available on the Companywebsite www.elektrobit.com/investors.July 31, 2009EB, Elektrobit CorporationCorporate CommunicationsEB, ELEKTROBIT CORPORATION, INTERIM REPORT JANUARY - JUNE 2009(unaudited)The Interim Report has been prepared in accordance with IAS 34Interim Financial Reporting.CONSOLIDATED STATEMENT OF 1-6/2009 1-6/2008 1-12/2008COMPREHENSIVE INCOME (MEUR) 6 months 6 months 12 monthsNET SALES 80.2 88.3 172.3Other operating income 1.9 2.1 6.2Change in work in progressand finished goods -1.2 -0.7 -2.8Work performed by theundertaking for its ownpurposeand capitalized 0.4 0.1 0.1Raw materials -3.7 -9.2 -18.0Personnel expenses -47.3 -52.0 -104.0Depreciation -5.1 -9.7 -16.4Other operating expenses -26.2 -40.3 -80.1OPERATING PROFIT (LOSS) -1.1 -21.4 -42.7Financial income andexpenses -0.5 0.2 -4.7RESULT BEFORE TAXES -1.6 -21.2 -47.4Income taxes -1.0 0.0 -2.4RESULT FOR THE PERIOD FROMCONTINUINGOPERATIONS -2.6 -21.2 -49.8Result after taxes for theperiod from discontinuedoperations 0.1 0.3RESULT FOR THE PERIOD -2.6 -21.0 -49.5Other comprehensive income: Exchange differences ontranslating foreignoperations -0.2 -0.4 0.6Other comprehensive incomefor the period total -0.2 -0.4 0.6TOTAL COMPREHENSIVE INCOMEFOR THE PERIOD -2.8 -21.4 -48.9Result for the periodattributable to Equity holders of theparent -2.6 -21.0 -49.5Total comprehensive incomeattributable to Equity holders of theparent -2.8 -21.4 -48.9Earnings per share EURcontinuing operations Basic earnings per share -0.02 -0.16 -0.38 Diluted earnings pershare -0.02 -0.16 -0.38Earnings per share EURdiscontinued operations Basic earnings per share 0.0 0.00 Diluted earnings pershare 0.0 0.00Earnings per share EURcontinuing and discontinuedOperations Basic earnings per share -0.02 -0.16 -0.38 Diluted earnings pershare -0.02 -0.16 -0.38Average number of shares,1000 pcs 129 413 129 413 129 413CONSOLIDATED STATEMENT OF June 30, 2009 June 30, 2008 Dec. 31, 2008FINANCIAL POSITION (MEUR)ASSETSNon-current assets Property, plant andequipment 13.9 24.3 16.2 Goodwill 18.5 17.6 18.3 Intangible assets 9.2 16.3 11.0 Other financial assets 0.4 0.3 0.4 Receivables 0.8 0.9 0.8 Deferred tax assets 3.4 0.1Non-current assets total 42.7 62.8 46.7Current assets Inventories 2.2 7.2 3.3 Trade and otherreceivables 60.4 61.9 61.9 Financial assets at fairvalue through profit orloss 0.2 0.5 Cash and short termdeposits 60.3 74.8 68.6Current assets total 123.2 144.4 133.8TOTAL ASSETS 165.9 207.2 180.5EQUITY AND LIABILITIESEquity attributable toequity holders of theparent Share capital 12.9 12.9 12.9 Share premium 64.6 64.6 64.6 Translation difference -0.0 -0.8 0.2 Retained earnings 35.2 65.6 37.4Total equity 112.7 142.3 115.1Non-current liabilities Deferred tax liabilities 2.3 3.5 2.6 Provisions 1.7 1.0 Interest-bearingliabilities 13.6 22.8 15.4 Other liabilities 0.1 0.6 0.7Non-current liabilitiestotal 17.6 26.8 19.7Current liabilities Trade and other payables 26.3 28.0 35.1 Financial liabilities atfair value through profitor loss 0.1 Pension obligations 1.2 1.1 1.0 Provisions 1.9 2.5 Interest-bearing loansand borrowings 6.3 8.9 7.0Current liabilities total 35.7 38.0 45.7Total liablities 53.3 64.8 65.4TOTAL EQUITY ANDLIABILITIES 165.9 207.2 180.5CONSOLIDATED STATEMENT OF CASH FLOWS 1-6/2009 1-6/2008 1-12/2008(MEUR) 6 months 6 months 12 monthsCASH FLOW FROM OPERATING ACTIVITIESResult for the period -2.6 -21.0 -49.5Adjustment of accrual basis items 6.2 12.0 27.0Change in net working capital -7.1 -6.3 2.4Interest paid on operating activities -0.9 -1.4 -7.3Interest received from operatingactivities 1.2 2.5 4.4Other financial income and expenses, netreceived 0.0 0.0Income taxes paid -0.4 -2.2 -1.7NET CASH FROM OPERATING ACTIVITIES -3.7 -16.5 -24.7CASH FLOW FROM INVESTING ACTIVITIESAcquisition of business unit, net of cashacquired -0.9Disposal of business unit, net of cashacquired -0.9 18.3 26.8Purchase of property, plant and equipment -1.0 -0.5 -1.8Purchase of intangible assets -0.4 -2.1 -2.6Purchase of other investments -0.5 -0.5Sale of property, plant and equipment 0.1 0.2Sale of intangible assets 0.1Proceeds from sale of investments 10.4 10.6NET CASH FROM INVESTING ACTIVITIES -2.1 25.7 31.8CASH FLOW FROM FINANCING ACTIVITIESProceeds from borrowing 1.0 0.5 0.1Repayment of borrowing -1.4 -1.1 -1.9Payment of finance liabilities -2.1 -3.0 -6.0Dividends paid -2.6 -2.6NET CASH FROM FINANCING ACTIVITIES -2.5 -6.3 -10.5NET CHANGE IN CASH AND CASH EQUIVALENTS -8.3 2.9 -3.3Cash and cash equivalents at beginning ofperiod 68.6 71.9 71.9Cash and cash equivalents at end ofperiod 60.3 74.8 68.6CONSOLIDATED STATEMENT OFCHANGES IN EQUITY (MEUR)A = Share capitalB = Share premiumC = Retained earningsD = Total equity A B C DEquity on January 1, 2008 12.9 64.6 88.1 165.7 Dividend distribution -2.6 -2.6 Share-related compensation 0.5 0.5 Total comprehensive income for the period -21.4 -21.4 Other items 0.2 0.2Equity on June 30, 2008 12.9 64.6 64.8 142.3Equity on January 1, 2009 12.9 64.6 37.6 115.1 Share-related compensation 0.1 0.1 Total comprehensive income for the period -2.8 -2.8 Other items 0.3 0.3Equity on June 30, 2009 12.9 64.6 35.1 112.7NOTES TO THE INTERIM REPORTAccounting principles for the Interim Report:The Interim Report has been prepared in accordance with IAS 34Interim Financial Reporting. The same accounting policies and methodsof computation are followed in the interim report as compared withannual financial statements.The Group has adopted following standards:IAS 1 (Revised) Presentation of Financial Statements. The revisionmainly addresses the presentation in the income statement and thestatement of changes in equity.IFRS 8 Operating Segments. The new standard replaces IAS 14 SegmentReporting. Under IFRS 8, the reporting is based on the management'sinternal reporting system and measurement principles. The newstandard doesn't have any impact on the comparative information. FromJanuary 1, 2009 the reporting segments have been the same, Automotiveand Wireless, as they are according to the IAS 14 standard. Items notallocated to segments are included under Other items.Explanatory comments about the seasonality or cyclicality ofreporting period operations:The Company operates in business areas which are subject to seasonalfluctuations.The nature and amount of items affecting assets, liabilities, equity,net income, or cash flows which are unusual because of their nature,size or incidence:The result of the reporting period comprises non-recurringrestructuring costs of EUR 1.6 million.Dividends paid:The General Meeting held on March 19, 2009 decided in accordance withthe proposal of the Board of Directors that no dividend shall bedistributed.SEGMENT INFORMATION (MEUR)OPERATING SEGMENTS 1-6/2009 1-6/2008 1-12/2008 6 months 6 months 12 monthsAutomotive Net sales to external customers 29.9 28.7 63.3 Net sales to other segments 0.1 0.1 Net sales total 29.9 28.8 63.4 Operating profit (loss) -3.1 -5.7 -12.1Wireless Net sales to external customers 50.0 59.4 108.6 Net sales to other segments 0.2 0.1 0.1 Net sales total 50.2 59.4 108.6 Operating profit (loss) 1.4 -15.6 -28.5OTHER ITEMSOther items Net sales to external customers 0.3 0.2 0.4 Operating profit (loss) 0.6 -0.1 -2.1Eliminations Net sales to other segments -0.2 -0.2 -0.2 Operating profit (loss) 0.0 0.0 0.0Group total Net sales to external customers 80.2 88.3 172.3 Operating profit (loss) -1.1 -21.4 -42.7Net sales of geographical areas (MEUR) 1-6/2009 1-6/2008 1-12/2008 6 months 6 months 12 monthsNet sales Europe 48.9 52.9 114.9 Americas 24.4 31.2 49.2 Asia 6.9 4.2 8.1Net sales total 80.2 88.3 172.3Material events subsequent to the end of the interim period notreflected in the financial statements for the interim period:There are no such material events subsequent to the end of theinterim report period that have not been reflected in this report.The effect of changes in the composition of the group structureduring the interim period:On February 2, 2009 EB exited from RFID technology business byselling 7iD Technologies GmbH to the acting management of the saidcompany in Austria.Related party transactions: 1-6/2009 1-6/2008 1-12/2008Employee benefits for key management andstockoption expenses total 1.2 1.3 2.7CONSOLIDATED STATEMENT 4-6/ 1-3/ 10-12/ 7-9/ 4-6/OFCOMPREHENSIVE INCOME 2009 2009 2008 2008 2008BY QUARTER (MEUR) 3 months 3 months 3 months 3 months 3 monthsNET SALES 37.4 42.8 49.5 34.5 41.0Other operating income 1.3 0.6 1.5 2.6 0.7Change in work inprogress andfinished goods -0.9 -0.3 -1.2 -0.8 -0.1Work performed by theundertakingfor its own purposeand capitalized 0.3 0.1 0.0 -0.0 0.0Raw materials -1.5 -2.2 -6.6 -2.3 -3.6Personnel expenses -22.7 -24.6 -27.8 -24.3 -24.8Depreciation -2.4 -2.7 -3.8 -2.9 -6.5Other operatingexpenses -12.6 -13.7 -20.1 -19.7 -20.1OPERATING PROFIT(LOSS) -1.1 0.0 -8.5 -12.9 -13.3Financial income andexpenses 0.5 -0.9 -3.3 -1.6 -0.2RESULT BEFORE TAXES -0.7 -0.9 -11.8 -14.4 -13.6Income taxes -0.9 -0.2 -2.3 -0.1 0.0RESULT FOR THE PERIODFROMCONTINUING OPERATIONS -1.6 -1.1 -14.0 -14.6 -13.5Result after taxes forthe periodfrom discontinuedoperations 0.1 0.0 0.1RESULT FOR THE PERIOD -1.6 -1.1 -13.9 -14.6 -13.4Other comprehensiveincomefor the period total -0.5 0.3 0.1 0.8 0.1TOTAL COMPREHENSIVEINCOME FOR THE PERIOD -2.1 -0.8 -13.8 -13.7 -13.3Result for the periodattributable to: Equity holders ofthe parent -1.6 -1.1 -13.9 -14.6 -13.4Total comprehensiveincomefor the periodattributable to: Equity holders ofthe parent -2.1 -0.8 -13.8 -13.7 -13.3CONSOLIDATED STATEMENT June 30, March 31, Dec. 31, Sept. 30, June 30,OFFINANCIAL POSITION 2009 2009 2008 2008 2008(MEUR)ASSETSNon-current assets Property, plant andequipment 13.9 14.9 16.2 17.4 24.3 Goodwill 18.5 18.3 18.3 18.2 17.6 Intangible assets 9.2 10.0 11.0 15.8 16.3 Other financialassets 0.4 0.4 0.4 0.3 0.3 Receivables 0.8 0.8 0.8 0.9 0.9 Deferred tax assets 0.1 2.6 3.4Non-current assetstotal 42.7 44.4 46.7 55.3 62.8Current assets Inventories 2.2 2.6 3.3 5.8 7.2 Trade and otherreceivables 60.4 62.9 61.9 60.2 61.9 Financial assets atfair value through profit orloss 0.2 0.2 0.5 Cash and short termdeposits 60.3 62.8 68.6 67.2 74.8Current assets total 123.2 128.5 133.8 133.2 144.4TOTAL ASSETS 165.9 172.9 180.5 188.5 207.2EQUITY AND LIABILITIESEquity attributable toequity holdersof the parent Share capital 12.9 12.9 12.9 12.9 12.9 Share premium 64.6 64.6 64.6 64.6 64.6 Translationdifference -0.0 0.5 0.2 0.1 -0.8 Retained earnings 35.2 36.8 37.4 51.0 65.6Total equity 112.7 114.8 115.1 128.6 142.3Non-currentliabilities Deferred taxliabilities 2.3 2.5 2.6 3.2 3.5 Provisions 1.7 0.8 1.0 1.2 Interest-bearingliabilities 13.6 14.2 15.4 15.9 22.8 Other liabilities 0.1 0.2 0.7 0.6 0.6Non-currentliabilities total 17.6 17.7 19.7 20.8 26.8Current liablities Trade and otherpayables 26.3 30.8 35.1 26.2 28.0 Financialliabilities at fairvalue through profit orloss 0.1 1.1 Pension obligations 1.2 1.2 1.0 1.1 1.1 Provisions 1.9 2.3 2.5 0.7 Interest-bearingloans and borrowings(non-current) 6.3 6.2 7.0 9.9 8.9Current liabilitiestotal 35.7 40.4 45.7 39.1 38.0Total liablities 53.3 58.1 65.4 59.9 64.8TOTAL EQUITY ANDLIABILITIES 165.9 172.9 180.5 188.5 207.2CONSOLIDATED STATEMENT 4-6/ 1-3/ 10-12/ 7-9/ 4-6/OF CASH FLOWS BY QUARTER 2009 2009 2008 2008 2008 3 months 3 months 3 months 3 months 3 months Net cash fromoperating activities -1.0 -2.7 -0.5 -7.7 -9.0 Net cash frominvesting activities -0.7 -1.4 5.7 0.5 -0.0 Net cash fromfinancing activities -0.7 -1.7 -3.8 -0.4 -1.8Net change in cash andcashequivalents -2.5 -5.8 1.4 -7.6 -10.9FINANCIAL PERFORMANCE RELATED RATIOS 1-6/2009 1-6/2008 1-12/2008 6 months 6 months 12 monthsSTATEMENT OF COMPREHENIVE INCOME (MEUR)Net sales 80.2 88.3 172.3Operating profit (loss) -1.1 -21.4 -42.7 Operating profit (loss), % of netsales -1.4 -24.2 -24.8Result before taxes -1.6 -21.2 -47.4 Result before taxes, % of net sales -2.0 -24.0 -27.5Result for the period -2.6 -21.2 -49.8PROFITABILITY AND OTHER KEY FIGURESInterest-bearing net liabilities, (MEUR) -40.5 -43.2 -46.2Net gearing, -% -35.9 -30.3 -40.2Equity ratio, % 69.2 69.9 64.9Gross investments, (MEUR) 1.7 6.2 9.8Average personnel during the period 1636 1775 1768Personnel at the period end 1606 1774 1735AMOUNT OF SHARE ISSUE ADJUSTMENT June 30, June 30, Dec. 31,(1,000 pcs) 2009 2008 2008At the end of period 129 413 129 413 129 413Average for the period 129 413 129 413 129 413Average for the period diluted with stockoptions 129 413 129 413 129 413STOCK-RELATED FINANCIAL RATIOS (EUR) 1-6/2009 1-6/2008 1-12/2008 6 months 6 months 12 monthsBasic earnings per share -0.02 -0.16 -0.38Diluted earnings per share -0.02 -0.16 -0.38Equity *) per share 0.87 1.10 0.89 *) Equity attributable to equityholders of the parentMARKET VALUES OF SHARES (EUR) 1-6/2009 1-6/2008 1-12/2008Highest 0.65 1.79 1.79Lowest 0.33 0.86 0.29Average 0.48 1.49 0.82At the end of period 0.59 0.94 0.33Market value of the stock, (MEUR) 76.4 121.6 42.7Trading value of shares, (MEUR) 5.2 6.0 9.6Number of shares traded, (1,000 pcs) 10 711 4 044 11 770Related to average number of shares % 8.3 3.1 9.1SECURITIES AND CONTINGENT LIABILITIES June 30, June 30, Dec. 31,(MEUR) 2009 2008 2008AGAINST OWN LIABILITIES Floating charges 3.1 3.1 3.1 Mortgages 7.0 Pledges 0.2 9.8 1.1 Guarantees 2.8 2.1 4.1Mortgages are pledged for liabilitiestotaled 9.3 16.6 9.9OTHER DIRECT AND CONTINGENT LIABILITIESRental liabilities Falling due in the next year 3.8 4.1 4.2 Falling due after one year 4.1 5.9 5.1NOMINAL VALUE OF CURRENCY DERIVATIVES June 30, June 30, Dec. 31,(MEUR) 2009 2008 2008Foreign exchange forward contracts Market value 0.1 0.5 -0.1 Nominal value 2.0 41.4 11.9Purchased currency options Market value 0.3 Nominal value 8.5Sold currency options Market value -0.2 Nominal value 17.0http://hugin.info/120213/R/1333294/316021.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 07.08.2009 - 07:00 Uhr
Sprache: Deutsch
News-ID 4456
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