EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY TO SEPTEMBER 2009
(Thomson Reuters ONE) - STOCK EXCHANGE RELEASEFree for publication on October 29, 2009 at 8.00 am. (CET+1)EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY TO SEPTEMBER 2009EB'S OPERATING CASH FLOW POSITIVE AND 3Q FINANCIAL PERFORMANCEACCORDING TO THE EXPECTATIONSSUMMARY 3Q 2009- Net sales amounted to EUR 33.5 million (EUR 34.5 million, 3Q2008), representing a -2.7 per cent decrease year-on-year.- Operating loss improved to EUR -0.8 million (EUR -12.9 million, 3Q2008).- Operating cash flow amounted to EUR 4.6 million (EUR -7.7 million,3Q 2008). The net cash flow increased to EUR 1.8 million (EUR -7.6million, 3Q 2008).- Cash and other liquid assets totaled to EUR 62.2 million (EUR 67.2million, 3Q 2008)- Equity ratio remained at a high level of 71.1% (69.5%, 3Q 2008)- Earnings per share were EUR -0.00 (EUR -0.11, 3Q 2008)Decrease of -10.3 per cent in the net sales (EUR 37.4 million, 2Q2009) is mainly due to the typical seasonality effect in R&D servicesbusiness as stated in the outlook given for the second half of 2009.EB'S CEO JUKKA HARJU:"EB's net sales and consequently the operating result were at theexpected level and generated clearly positive cash flow, despite themarket environment prevailed challenging. However, the operatingresult is by no means satisfactory and profitability improvementmaintains to be our most important short term target."FINANCIAL PERFORMANCE DURING JANUARY - SEPTEMBER 2009(Comparisons are given to January-September 2008, unless otherwiseindicated)EB's net sales during January - September 2009 decreased -7.4 percent to EUR 113.7 million (EUR 122.8 million). Operating loss frombusiness operations amounted to EUR -0.3 million and thenon-recurring costs totaled to EUR -1.6 million, resulting to theoperating loss of EUR -1.9 million (EUR -34.2 million).The Automotive Business Segment's net sales during January -September 2009 amounted to EUR 44.7 million (EUR 44.6 million)representing a slight growth of 0.3 per cent. The operating lossreduced to EUR -4.0 million (EUR -9.8 million). The significantimprovement of operating result with flat turnover reflects theprofitability improvement measures taken.The Wireless Business Segment's net sales during January - September2009 amounted to EUR 68.6 million (EUR 77.9 million), representing adecline of -11.9 per cent. Operating result from business operationsamounted to EUR 2.5 million and the non-recurring costs totaled toEUR -1.2 million, resulting to the operating profit of EUR 1.3million (EUR -23.6 million). The significant improvement of operatingresult with lower turnover year-on-year was mainly due to theexecution of the earlier announced profitability improvement program.The total R&D investments during the reporting period were EUR 10.5million (EUR 30.5 million), equaling 9.2 per cent of the net sales(24.8 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 INCOME STATEMENT (MEUR) 1-9 2009 1-9 2008 9 months 9 monthsNET SALES 113.7 122.8OPERATING PROFIT (LOSS) -1.9 -34.2Financial income and expenses -0.3 -1.4RESULT BEFORE TAX -2.2 -35.6RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS -3.1 -35.8Profit after tax for the year from discontinued 0.3operations 0.1RESULT FOR THE PERIOD -2.8 -35.6TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -3.4 -35.1Result for the period attributable to: Equity holders of the parent -2.7 -35.6 Minority interest -0.0Total comprehensive income for the periodattributable to: Equity holder of the parent -3.4 -35.1 Minority interest -0.0Earnings per share EUR continuing operations -0.02 -0.28Earnings per share EUR discontinued operations 0.00 0.00Earnings per share EUR continuing and discontinuedoperations -0.02 -0.28- Cash flow from Business Operations amounted to EUR 0.9 million(EUR -24.1 million).- Equity ratio was 71.1% (69.5%).- Net gearing was -39.5% (-32.2%).QUARTERLY FIGURESThe distribution of the Group's overall net sales and profit, MEUR:+-------------------------------------------------------------------+| | 3Q 09 | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 ||---------------------------+-------+-------+-------+-------+-------|| Net sales | 33.5 | 37.4 | 42.8 | 49.5 | 34.5 ||---------------------------+-------+-------+-------+-------+-------|| Operating profit (loss) | -0.8 | -1.1 | 0.0 | -8.5 | -12.9 ||---------------------------+-------+-------+-------+-------+-------|| Operating profit (loss) | -0.8 | -0.4 | 0.9 | -2.8 | -11.3 || without non-recurring | | | | | || costs | | | | | ||---------------------------+-------+-------+-------+-------+-------|| Result before taxes | -0.6 | -0.7 | -0.9 | -11.8 | -14.4 ||---------------------------+-------+-------+-------+-------+-------|| Result for the period | -0.5 | -1.6 | -1.1 | -14.0 | -14.6 |+-------------------------------------------------------------------+The distribution of the net sales by Business Segment, MEUR:+-----------------------------------------------------------+| | 3Q 09 | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 ||-------------------+-------+-------+-------+-------+-------|| Automotive | 14.8 | 13.5 | 16.4 | 18.7 | 15.9 ||-------------------+-------+-------+-------+-------+-------|| Wireless | 18.6 | 23.7 | 26.3 | 30.7 | 18.5 ||-------------------+-------+-------+-------+-------+-------|| Corporation total | 33.5 | 37.4 | 42.8 | 49.5 | 34.5 |+-----------------------------------------------------------+The distribution of the net sales by market area, MEUR and %:+--------------------------------------------------+| | 3Q 09 | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 ||----------+-------+-------+-------+-------+-------|| Asia | 1.8 | 2.5 | 4.4 | 3.1 | 0.9 || | 5.5% | 6.8% | 10.3% | 6.2% | 2.6% ||----------+-------+-------+-------+-------+-------|| Americas | 11.1 | 12.5 | 11.9 | 10.9 | 7.1 || | 33.1% | 33.5% | 27.7% | 22.0% | 20.7% ||----------+-------+-------+-------+-------+-------|| Europe | 20.6 | 22.3 | 26.6 | 35.5 | 26.4 || | 61.4% | 59.7% | 62.1% | 71.8% | 76.7% |+--------------------------------------------------+Net sales (external) and operating profit development by BusinessSegments and Other businesses, MEUR:+-----------------------------------------------------------------+| | 3Q 09 | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 ||-------------------------+-------+-------+-------+-------+-------|| Automotive | | | | | || Net sales | 14.8 | 13.5 | 16.4 | 18.7 | 15.9 || Operating profit (loss) | -0.9 | -2.5 | -0.7 | -2.3 | -4.1 ||-------------------------+-------+-------+-------+-------+-------|| Wireless | | | | | || Net sales | 18.6 | 23.7 | 26.3 | 30.7 | 18.5 || Operating profit (loss) | -0.1 | 0.9 | 0.5 | -4.9 | -8.1 ||-------------------------+-------+-------+-------+-------+-------|| Other businesses | | | | | || Net sales | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 || Operating profit (loss) | 0.2 | 0.4 | 0.2 | -1.3 | -0.7 ||-------------------------+-------+-------+-------+-------+-------|| Total | | | | | || Net sales | 33.5 | 37.4 | 42.8 | 49.5 | 34.5 || Operating profit (loss) | -0.8 | -1.1 | 0.0 | -8.5 | -12.9 |+-----------------------------------------------------------------+BUSINESS SEGMENTS' MAIN EVENTS DURING 3Q 2009EB's reporting is based on the Automotive and Wireless BusinessSegments.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 third quarter of 2009, the net sales of the AutomotiveBusiness Segment amounted to EUR 14.8 million (EUR 15.9 million, 3Q2008), representing a year-on-year decline of -6.6 per cent. Thedecline in net sales reflects the challenging automotive marketconditions in which customers constrained their R&D investments.Despite of the slight decline in net sales, the operating resultimproved significantly to EUR -0.9 million (EUR -4.1 million, 3Q2008) due to the taken profitability improvement measures.Automotive Business Segment continued the execution of its announcedstrategy including investments into EB's automotive software productsand global solution services to its customers.The joint venture between EB and AEV (Audi Electronics Venture GmbH)named e.solutions GmbH started its operations in July. Itconcentrates on the development of a software framework and controlsystem for in-vehicle infotainment systems.In September EB and NEC Electronics announced their collaboration forAUTOSAR solutions including availability of an AUTOSAR 3.0 compatiblesoftware package with basic software and comprehensive tool chain forvarious hardware platforms. This enables easy design of applicationsoftware without the need for new developments.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 third quarter of 2009, the net sales of the WirelessBusiness Segment amounted to EUR 18.6 million (EUR 18.5 million, 3Q2008), representing a slight increase of 0.2 per cent. The operatingloss was EUR -0.1 million (EUR -8.1 million, 3Q 2008). Thesignificant improvement of operating result with flat turnoveryear-on-year was mainly due to the execution of the earlier announcedprofitability 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 atexpected level. The demand for satellite-terrestrial network devicesolutions 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 anddevices.In July EB announced that the EB-designed satellite-terrestrialsmartphone, used by TerreStar Networks, successfully completed afirst ever handset-to-handset VoIP call over satellite network,highlighting EB's strength in device development.In August EB announced it has joined the Symbian Foundation. EB holdsa seat on the Release Council, which coordinates the integration ofcontributions to the Symbian source code into stable and timelyplatform and tools releases.In September the EB MID Reference Device was recognized as a finalistat the annual 4G World Awards for Best Mobile Internet Device.Further in September EB introduced multimedia improvements to its MIDreference design.The earlier announced closing of the EB Turku site was finalized bythe end of September.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.While customers remain very cost conscious there are early signs thatthe demand starts to slowly recover.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 satellite-terrestrial and Mobile Satellite Services(MSS) market demand is expected to start moving from the currentreference design phase towards the launch of commercial products andservices. This can create new service and product related businessopportunities for companies such as EB.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, continuing OEMs need to reduce their fixed costs andincrease flexibility that can create new opportunities for partneringfor companies 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 technology and that is expected toremain as a driver for the demand in the medium and long term. EBprovides world leading channel emulation tools for the development ofMIMO based 3GPP LTE and other advanced radio technologies.RESEARCH AND DEVELOPMENT DURING 3Q 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 third quarter of 2009 were EUR3.5 million (EUR 8.9 million, 3Q 2008), equaling 10.5 per cent of thenet sales (25.7 % 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.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).As earlier announced in the Interim Report January - June 2009, thethird quarter of 2009 is estimated to be weaker than the latter partof the half due to the holiday period and the nature of R&D servicesbusiness.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 ofSeptember 30, 2009, are compared with the statement of financialposition of December 31, 2008 (EUR 1,000). 9/2009 12/2008Non-current assets 40,680 46,724Current assets 120,673 133,797Total assets 161,353 180,520Share capital 12,941 12,941Other equity 99,250 102,181Minority interest 47Total shareholders' equity 112,239 115,123Non-current liabilities 16,188 19,690Current liabilities 32,926 45,708Total shareholders' equity and liabilities 161,353 180,520Net cash flow from operations during the period under review:+ net profit +/- adjustment of accrual basis items EUR +3,7 million+ increase in net working capital EUR -1,6 million+ interest, taxes and dividends EUR -1,2 million= cash generated from operations EUR 0,9 million- net cash used in investment activities EUR -2,8 million- net cash used in financing EUR -4,6 million= net change in cash and cash equivalents EUR -6,4 millionThe amount of accounts and other receivables, booked in currentreceivables, was EUR 55.6 million (EUR 61.9 million on December 31,2008). Accounts and other payables, booked in interest-free currentliabilities, were EUR 27.7 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 EUR2.4 million, consisting of replacement investments. Net investmentsfor the reporting period totaled EUR 1.5 million. The total amount ofdepreciation during the period under review was EUR 7.5 million,including EUR 1.6 million of depreciation owing to businessacquisitions.The amount of interest-bearing debt at the end of the reportingperiod was EUR 17.8 million. The distribution of net financingexpenses on the income statement was as follows:interest, dividend and other financial income EUR 0.7 millioninterest expenses and other financial expenses EUR -0.7 millionforeign exchange gains and losses EUR -0.3 millionEB's equity ratio at the end of the period was 71.1 per cent (64.9per cent at the end of 2008).The figures from the period under review includes the statutoryreserves EUR 3.2 million.EB follows a hedging 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 thehedging strategy, the agreed customer commitments net cash flow ofthe currency in question is hedged. The net cash flow is determinedon the basis of sales receivables, payables, the order book and thebudgeted net currency cash flow. The hedged foreign currency exposureat the end of the review period was equivalent to EUR 10.5 million.PERSONNELEB employed an average of 1610 people between January and September2009. At the end of September, EB had 1556 employees (1735 at the endof 2008). A significant part of EB's personnel are productdevelopment engineers.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, October 29, 2009EB, Elektrobit CorporationThe Board of DirectorsFurther Information:Jukka HarjuCEOTel. +358 40 344 5501Panu MiettinenCFOTel. +358 40 344 5338Distribution:NASDAQ OMX HelsinkiPrincipal mediaINVITATION TO PRESS CONFERENCE ON EB'S 3Q 2009 RESULTEB, Elektrobit Corporation's Interim Report January - September 2009will be published on Thursday, October 29, 2009 at 8.00 am (CET+1).The release will be available at EB's website immediately after that.EB will hold a conference call for media, analysts and institutionalinvestors on the same day at 12.00 am (CET+1). The presentation willbe shown simultaneously in the Internet through WebEx. The conferencewill be held in English.To join the conference call please dial +358 20 699 101. The accesscode is 757344#To follow the presentation online through WebEx, please go towww.elektrobit.com/investors. In technical problems, please go towww.elektrobit.com/webcast/instructions or call number +358 40 3445148.The recording of the conference call and the presentation will beavailable after the conference on EB's websitewww.elektrobit.com/investors.October 22, 2009EB, Elektrobit CorporationCorporate CommunicationsEB, ELEKTROBIT CORPORATION, INTERIM REPORT JANUARY - SEPTEMBER 2009(unaudited)The Interim Report has been prepared in accordance with IAS 34Interim Financial Reporting.CONSOLIDATED STATEMENT OF 1-9/2009 1-9/2008 1-12/2008COMPREHENSIVE INCOME (MEUR) 9 months 9 months 12 monthsNET SALES 113.7 122.8 172.3Other operating income 2.8 4.7 6.2Change in work in progress andfinished goods -0.8 -1.5 -2.8Work performed by the undertakingfor its own purposeand capitalized 0.4 0.1 0.1Raw materials -5.8 -11.4 -18.0Personnel expenses -67.6 -76.3 -104.0Depreciation -7.5 -12.6 -16.4Other operating expenses -37.1 -60.0 -80.1OPERATING PROFIT (LOSS) -1.9 -34.2 -42.7Financial income and expenses -0.3 -1.4 -4.7RESULT BEFORE TAXES -2.2 -35.6 -47.4Income taxes -0.9 -0.1 -2.4RESULT FOR THE PERIOD FROMCONTINUINGOPERATIONS -3.1 -35.8 -49.8Result after taxes for the periodfrom discontinuedOperations 0.3 0.1 0.3RESULT FOR THE PERIOD -2.8 -35.6 -49.5Other comprehensive income: Exchange differences ontranslating foreign operations -0.6 0.5 0.6Other comprehensive income for theperiod total -0.6 0.5 0.6TOTAL COMPREHENSIVE INCOME FOR THEPERIOD -3.4 -35.1 -48.9Result for the period attributableto Equity holders of the parent -2.7 -35.6 -49.5 Minority interest 0.0Total comprehensive incomeattributable to Equity holders of the parent -3.4 -35.1 -48.9 Minority interest 0.0Earnings per share EUR continuingoperations Basic earnings per share -0.02 -0.28 -0.38 Diluted earnings per share -0.02 -0.28 -0.38Earnings per share EUR discontinuedoperations Basic earnings per share 0.00 0.00 0.00 Diluted earnings per share 0.00 0.00 0.00Earnings per share EUR continuingand discontinuedOperations Basic earnings per share -0.02 -0.28 -0.38 Diluted earnings per share -0.02 -0.28 -0.38Average number of shares, 1000 pcs 129 413 129 413 129 413CONSOLIDATED STATEMENT OF FINANCIAL Sept. 30, Sept. 30, Dec. 31, 2008POSITION (MEUR) 2009 2008ASSETSNon-current assets Property, plant and equipment 12.2 17.4 16.2 Goodwill 18.5 18.2 18.3 Intangible assets 8.8 15.8 11.0 Other financial assets 0.3 0.3 0.4 Receivables 0.8 0.9 0.8 Deferred tax assets 0.0 2.6 0.1Non-current assets total 40.7 55.3 46.7Current assets Inventories 2.6 5.8 3.3 Trade and other receivables 55.6 60.2 61.9 Financial assets at fair valuethrough profit or loss 0.3 Cash and short term deposits 62.2 67.2 68.6Current assets total 120.7 133.2 133.8TOTAL ASSETS 161.4 188.5 180.5EQUITY AND LIABILITIESEquity attributable to equityholders of the parent Share capital 12.9 12.9 12.9 Share premium 64.6 64.6 64.6 Translation difference -0.4 0.1 0.2 Retained earnings 35.1 51.0 37.4 Minority interest 0.0Total equity 112.2 128.6 115.1Non-current liabilities Deferred tax liabilities 2.2 3.2 2.6 Provisions 1.3 1.2 1.0 Interest-bearing liabilities 12.5 15.9 15.4 Other liabilities 0.1 0.6 0.7Non-current liabilities total 16.2 20.8 19.7Current liabilities Trade and other payables 24.5 26.2 35.1 Financial liabilities at fairvalue through profit or loss 1.1 0.1 Pension obligations 1.2 1.1 1.0 Provisions 1.9 0.7 2.5 Interest-bearing loans andborrowings 5.2 9.9 7.0Current liabilities total 32.9 39.1 45.7Total liabilities 49.1 59.9 65.4TOTAL EQUITY AND LIABILITIES 161.4 188.5 180.5CONSOLIDATED STATEMENT OF CASH FLOWS 1-9/2009 1-9/2008 1-12/2008(MEUR) 9 months 9 months 12 monthsCASH FLOW FROM OPERATING ACTIVITIESResult for the period -2.8 -35.6 -49.5Adjustment of accrual basis items 6.6 15.9 27.0Change in net working capital -1.6 -3.6 2.4Interest paid on operating activities -1.8 -1.9 -7.3Interest received from operatingactivities 1.4 3.0 4.4Other financial income and expenses, netreceived 0.0 0.0 0.0Income taxes paid -0.8 -2.0 -1.7NET CASH FROM OPERATING ACTIVITIES 0.9 -24.1 -24.7CASH FLOW FROM INVESTING ACTIVITIESAcquisition of business unit, net of cashacquired -0.9 -0.9Disposal of business unit, net of cashacquired -0.6 20.4 26.8Purchase of property, plant and equipment -1.5 -1.2 -1.8Purchase of intangible assets -0.9 -2.3 -2.6Purchase of other investments 0.0 -0.5 -0.5Sale of property, plant and equipment 0.1 0.2 0.2Sale of intangible assets 0.0Proceeds from sale of investments 0.1 10.5 10.6NET CASH FROM INVESTING ACTIVITIES -2.8 26.1 31.8CASH FLOW FROM FINANCING ACTIVITIESProceeds from borrowing 1.1 2.1 0.1Repayment of borrowing -2.6 -1.6 -1.9Payment of finance liabilities -3.0 -4.6 -6.0Dividends paid -2.6 -2.6NET CASH FROM FINANCING ACTIVITIES -4.6 -6.7 -10.5NET CHANGE IN CASH AND CASH EQUIVALENTS -6.4 -4.7 -3.3Cash and cash equivalents at beginning ofperiod 68.6 71.9 71.9Cash and cash equivalents at end ofperiod 62.2 67.2 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 0.7 0.7 Total comprehensive income for the period -35.1 -35.1 Other items 0.0 0.0Equity on September 30, 2008 12.9 64.6 51.1 128.6Equity on January 1, 2009 12.9 64.6 37.6 115.1 Share-related compensation 0.2 0.2 Total comprehensive income for the period -3.4 -3.4 Other items 0.3 0.3Equity on September 30, 2009 12.9 64.6 34.7 112.2NOTES 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 1-9/2009 1-9/2008 1-12/2008 9 months 9 months 12 monthsAutomotive Net sales to external customers 44.7 44.6 63.3 Net sales to other segments 0.0 0.1 0.1 Net sales total 44.7 44.7 63.4 Operating profit (loss) -4.0 -9.8 -12.1Wireless Net sales to external customers 68.6 77.9 108.6 Net sales to other segments 0.2 0.1 0.1 Net sales total 68.7 78.0 108.6 Operating profit (loss) 1.3 -23.6 -28.5OTHER ITEMSOther items Net sales to external customers 0.4 0.3 0.4 Operating profit (loss) 0.9 -0.8 -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 113.7 122.8 172.3 Operating profit (loss) -1.9 -34.2 -42.7Net sales of geographical areas (MEUR) 1-9/2009 1-9/2008 1-12/2008 9 months 9 months 12 monthsNet sales Europe 69.5 79.4 114.9 Americas 35.5 38.4 49.2 Asia 8.8 5.1 8.1Net sales total 113.7 122.8 172.3Material 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. On June 22, 2009 EB and AEV (Audi ElectronicsVenture GmbH) established a joint venture named e.solutions GmbH. EBholds a 51% stake of the new company, and thus it will be recorded asEB's subsidiary in the consolidated financial statement. AEV holdsthe remaining 49% stake.Related party transactions: 1-9/2009 1-9/2008 1-12/2008Employee benefits for key management andstockoption expenses total 1.8 2.1 2.7CONSOLIDATED STATEMENT 7-9/ 4-6/ 1-3/ 10-12/ 7-9/OFCOMPREHENSIVE INCOME 2009 2009 2009 2008 2008BY QUARTER (MEUR) 3 months 3 months 3 months 3 months 3 monthsNET SALES 33.5 37.4 42.8 49.5 34.5Other operating income 0.9 1.3 0.6 1.5 2.6Change in work inprogress andfinished goods 0.4 -0.9 -0.3 -1.2 -0.8Work performed by theundertakingfor its own purposeand capitalized 0.0 0.3 0.1 0.0 -0.0Raw materials -2.1 -1.5 -2.2 -6.6 -2.3Personnel expenses -20.3 -22.7 -24.6 -27.8 -24.3Depreciation -2.4 -2.4 -2.7 -3.8 -2.9Other operatingexpenses -10.8 -12.6 -13.7 -20.1 -19.7OPERATING PROFIT(LOSS) -0.8 -1.1 0.0 -8.5 -12.9Financial income andexpenses 0.2 0.5 -0.9 -3.3 -1.6RESULT BEFORE TAXES -0.6 -0.7 -0.9 -11.8 -14.4Income taxes 0.1 -0.9 -0.2 -2.3 -0.1RESULT FOR THE PERIODFROMCONTINUING OPERATIONS -0.5 -1.6 -1.1 -14.0 -14.6Result after taxes forthe periodfrom discontinuedoperations 0.3 0.1 0.0RESULT FOR THE PERIOD -0.1 -1.6 -1.1 -13.9 -14.6Other comprehensiveincomefor the period total -0.4 -0.5 0.3 0.1 0.8TOTAL COMPREHENSIVEINCOME FOR THE PERIOD -0.5 -2.1 -0.8 -13.8 -13.7Result for the periodattributable to: Equity holders ofthe parent -0.1 -1.6 -1.1 -13.9 -14.6 Minority interest 0.0Total comprehensiveincomefor the periodattributable to: Equity holders ofthe parent -0.5 -2.1 -0.8 -13.8 -13.7 Minority interest 0.0CONSOLIDATED STATEMENT Sept. 30, June 30, March 31, Dec. 31, Sept.OF 30,FINANCIAL POSITION 2009 2009 2009 2008 2008(MEUR)ASSETSNon-current assets Property, plant andequipment 12.2 13.9 14.9 16.2 17.4 Goodwill 18.5 18.5 18.3 18.3 18.2 Intangible assets 8.8 9.2 10.0 11.0 15.8 Other financialassets 0.3 0.4 0.4 0.4 0.3 Receivables 0.8 0.8 0.8 0.8 0.9 Deferred tax assets 0.0 0.1 2.6Non-current assetstotal 40.7 42.7 44.4 46.7 55.3Current assets Inventories 2.6 2.2 2.6 3.3 5.8 Trade and otherreceivables 55.6 60.4 62.9 61.9 60.2 Financial assets atfair value through profit orloss 0.3 0.2 0.2 Cash and short termdeposits 62.2 60.3 62.8 68.6 67.2Current assets total 120.7 123.2 128.5 133.8 133.2TOTAL ASSETS 161.4 165.9 172.9 180.5 188.5EQUITY 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 -0.4 -0.0 0.5 0.2 0.1 Retained earnings 35.1 35.2 36.8 37.4 51.0 Minority interest 0.0Total equity 112.2 112.7 114.8 115.1 128.6Non-currentliabilities Deferred taxliabilities 2.2 2.3 2.5 2.6 3.2 Provisions 1.3 1.7 0.8 1.0 1.2 Interest-bearingliabilities 12.5 13.6 14.2 15.4 15.9 Other liabilities 0.1 0.1 0.2 0.7 0.6Non-currentliabilities total 16.2 17.6 17.7 19.7 20.8Current liabilities Trade and otherpayables 24.5 26.3 30.8 35.1 26.2 Financialliabilities at fairvalue through profit orloss 0.1 1.1 Pension obligations 1.2 1.2 1.2 1.0 1.1 Provisions 1.9 1.9 2.3 2.5 0.7 Interest-bearingloans and Borrowings(non-current) 5.2 6.3 6.2 7.0 9.9Current liabilitiestotal 32.9 35.7 40.4 45.7 39.1Total liabilities 49.1 53.3 58.1 65.4 59.9TOTAL EQUITY ANDLIABILITIES 161.4 165.9 172.9 180.5 188.5CONSOLIDATED STATEMENT 7-9/ 4-6/ 1-3/ 10-12/ 7-9/OF CASH FLOWS BY QUARTER 2009 2009 2009 2008 2008 3 months 3 months 3 months 3 months 3 months Net cash fromoperating activities 4.6 -1.0 -2.7 -0.5 -7.7 Net cash frominvesting activities -0.7 -0.7 -1.4 5.7 0.5 Net cash fromfinancing activities -2.1 -0.7 -1.7 -3.8 -0.4Net change in cash andcashequivalents 1.8 -2.5 -5.8 1.4 -7.6FINANCIAL PERFORMANCE RELATED RATIOS 1-9/2009 1-9/2008 1-12/2008 9 months 9 months 12 monthsSTATEMENT OF COMPREHENSIVE INCOME(MEUR)Net sales 113.7 122.8 172.3Operating profit (loss) -1.9 -34.2 -42.7 Operating profit (loss), % of netsales -1.7 -27.9 -24.8Result before taxes -2.2 -35.6 -47.4 Result before taxes, % of net sales -1.9 -29.0 -27.5Result for the period -3.1 -35.8 -49.8PROFITABILITY AND OTHER KEY FIGURESInterest-bearing net liabilities,(MEUR) -44.4 -41.4 -46.2Net gearing, -% -39.5 -32.2 -40.2Equity ratio, % 71.1 69.5 64.9Gross investments, (MEUR) 2.4 8.5 9.8Average personnel during the period 1610 1772 1768Personnel at the period end 1556 1780 1735AMOUNT OF SHARE ISSUE ADJUSTMENT Sept. 30, Sept. 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 withstock options 129 413 129 413 129 413STOCK-RELATED FINANCIAL RATIOS (EUR) 1-9/2009 1-9/2008 1-12/2008 9 months 9 months 12 monthsBasic earnings per share -0.02 -0.28 -0.38Diluted earnings per share -0.02 -0.28 -0.38Equity *) per share 0.87 0.99 0.89 *) Equity attributable to equityholders of the parentMARKET VALUES OF SHARES (EUR) 1-9/2009 1-9/2008 1-12/2008Highest 0.80 1.79 1.79Lowest 0.33 0.63 0.29Average 0.52 1.34 0.82At the end of period 0.75 0.70 0.33Market value of the stock, (MEUR) 97.1 90.6 42.7Trading value of shares, (MEUR) 7.0 7.0 9.6Number of shares traded, (1,000 pcs) 13 360 5 230 11 770Related to average number of shares % 10.3 4.0 9.1SECURITIES AND CONTINGENT LIABILITIES Sept. 30, Sept. 30, Dec. 31,(MEUR) 2009 2008 2008AGAINST OWN LIABILITIES Floating charges 3.3 3.1 3.1 Mortgages Pledges 0.9 2.0 1.1 Guarantees 2.8 4.1 4.1Mortgages are pledged for liabilitiestotaled 8.8 12.1 9.9OTHER DIRECT AND CONTINGENT LIABILITIESRental liabilities Falling due in the next year 3.6 4.4 4.2 Falling due after one year 4.4 4.9 5.1NOMINAL VALUE OF CURRENCY DERIVATIVES Sept. 30, Sept. 30, Dec. 31,(MEUR) 2009 2008 2008Foreign exchange forward contracts Market value 0.1 -1.1 -0.1 Nominal value 2.0 34.9 11.9Purchased currency options Market value 0.4 Nominal value 8.5Sold currency options Market value -0.1 Nominal value 17.0http://hugin.info/120213/R/1351036/326337.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 29.10.2009 - 07:00 Uhr
Sprache: Deutsch
News-ID 7572
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