TECNOTREE CORPORATION INTERIM REPORT 1 JANUARY - 31 MARCH 2010 (unaudited)
Tecnotree Corporation INTERIM REPORT
30 April 2010 at 8.30 am
TECNOTREE CORPORATION INTERIM REPORT 1 JANUARY - 31 MARCH 2010 (unaudited)
Strong order intake reflects improving market sentiment
Net sales in the first quarter of the year increased 22.8 per cent from the
corresponding period in the previous year to EUR 14.1 (11.5) million. The result
for the period was EUR -2.8 (-1.7) million. The cash flow after investments was
EUR 0.6 (0.3) million and the order book at the close of the period stood at EUR
21.9 (31.12.2009: 11.7) million.
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| KEY FIGURES | | | 1-3/2010 | 1-3/2009* | 1-12/2009 |
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| Net sales, MEUR | | | 14.1 | 11.5 | 53.3 |
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| Net sales, change % | | | 22.8 | -24.1 | -31.0 |
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| Operating result before R&D | | | -0.6 | -2.0 | -8.6 |
| capitalisation & amortisation | | | | | |
| and one-time costs, MEUR | | | | | |
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| Operating result, MEUR | | | -1.9 | -1.7 | -14.7 |
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| % of net sales | | | -13.5 | -14.9 | -27.7 |
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| Result before taxes, MEUR | | | -2.5 | -1.4 | -15.2 |
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| % of net sales | | | -17.5 | -12.2 | -28.6 |
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| Result for the period | | | -2.8 | -1.7 | -16.1 |
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| Earnings per share, basic, | | | -0.04 | -0.03 | -0.24 |
| EUR | | | | | |
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| Earnings per share, diluted, | | | -0.04 | -0.03 | -0.24 |
| EUR | | | | | |
--------------------------------------------------------------------------------
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| Order book, MEUR | | | 21.9 | 11.7 | 11.7 |
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| Cash flow after investments, | | | 0.6 | 0.3 | -4.8** |
| MEUR | | | | | |
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| Change in cash and cash | | | 0.6 | 0.3 | -26.0 |
| equivalents, MEUR | | | | | |
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| Cash and cash equivalents, | | | 27.2 | 51.5 | 25.7 |
| MEUR | | | | | |
--------------------------------------------------------------------------------
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| Equity ratio % | | | 66.4 | 69.7 | 65.7 |
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| Net gearing % | | | -11.5 | -38.5 | -10.8 |
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| Personnel at end of period | | | 759 | 350* | 779 |
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* Unless otherwise stated, all figures presented below are for the review period
1-3/2010 and the figures for comparison are for the corresponding period
1-3/2009. The figures for the period 1-12/2009 include the figures for Tecnotree
India (formerly Lifetree) for the period 6 May - 31 December 2009.
** before the EUR 14.7 million net payment for Tecnotree India acquisition
President and CEO Eero Mertano:
“The beginning of 2010 has gone according to plan. The merger of Tecnomen and
Lifetree to form Tecnotree has given our company a broader product portfolio,
greater R & D resources, extra customers and an improved cost structure. The
company is now starting to see the impact of these benefits. On-going structural
and synergistic changes are being made, anticipating the economic recovery and
improving customer demand.
During the three month review period our net sales were EUR 14.1 million (EUR
11.5 million in Jan. - Mar. 2009). New orders totalled EUR 24.3 (13.6) million
and as a result the order book at the end of March stood at EUR 21.9
(31.12.2009: 11.7) million. Maintenance sales were EUR 6.6 (3.9) million and
the cash flow was EUR 0.6 million positive.
The Q1 figures show that our company is on the right track. Our strong financial
position, improved competitiveness and skilled personnel ensure that we can
develop the company's operations with a long-term approach. We are working
closely with our customers to make sure this positive trend continues.”
SALES AND NET SALES
Tecnotree's net sales in the review period increased 22.8 per cent to EUR 14.1
(11.5) million.
EUR 4.2 million of sales in the review period have been recognised by stage of
completion (IAS 11 Construction Contracts) and EUR 9.9 million on delivery (IAS
18 Revenues).
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| NET SALES BY MARKET AREA | 1-3/2010 | 1-3/2009 | 1-3/2010 | 1-3/2009 |
| | MEUR | MEUR | % | % |
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| Americas (North, Central and | 4.5 | 7.0 | 31.7 | 60.6 |
| South America) | | | | |
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| Europe | 2.0 | 1.6 | 14.5 | 14.2 |
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| MEA (Middle East and Africa) | 5.9 | 2.1 | 41.4 | 18.5 |
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| APAC (Asia and Pacific) | 1.8 | 0.8 | 12.4 | 6.7 |
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| TOTAL | 14.1 | 11.5 | 100.0 | 100.0 |
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| CONSOLIDATED ORDER BOOK | 31.3.201 | 31.12.200 | 31.3.2010 | 31.12.200 |
| | 0 | 9 | % | 9 |
| | MEUR | MEUR | | % |
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| Americas (North, Central and | 8.5 | 1.9 | 39.0 | 15.9 |
| South America) | | | | |
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| Europe | 3.5 | 1.2 | 15.9 | 10.0 |
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| MEA (Middle East and Africa) | 8.6 | 6.9 | 39.4 | 59.2 |
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| APAC (Asia and Pacific alue) | 1.2 | 1.7 | 5.6 | 14.9 |
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| TOTAL | 21.9 | 11.7 | 100.0 | 100.0 |
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Maintenance and service sales totalled EUR 6.7 (3.9) million or 47.1 per cent
(33.8 %) of net sales.
OPERATING RESULT
Tecnotree's business operations are based on project sales. The income and costs
recorded for these vary considerably from one quarter to another. For this
reason it is important to base an examination of the profitability of the
company on the result for more than one quarter.
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| INCOME STATEMENT, KEY FIGURES, MEUR | 1-3/2010 | 1-3/2009 | 1-12/2009 |
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| Net sales | 14.1 | 11.5 | 53.3 |
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| Operating result before R&D | -0.6 | -2.0 | -8.6 |
| capitalisation & amortisation and | | | |
| one-time costs, MEUR | | | |
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| Product development capitalisation | 0.2 | 1.3 | 5.1 |
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| Product development amortisation | -1.5 | -1.0 | -4.2 |
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| One-time costs | | | -7.0 |
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| Operating result | -1.9 | -1.7 | -14.7 |
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| Result before taxes | -2.5 | -1.4 | -15.2 |
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The order book at the end of 2009 stood at just EUR 11.7 million, and this is a
main reason why net sales in the first quarter were not more than EUR 14.1
million.
Capitalisation of research and development costs and amortisation of these had
the net impact of weakening the result by EUR 1.6 million compared to the
corresponding period in the previous year.
Tecnotree Convergence Limited has been consolidated as from 6 May 2009, so the
figures for the first quarter of 2009 do not include the figures for India,
which were: net sales EUR 3.8 million and operating result EUR 0.0 million.
Taxes for the period totalled EUR 0.4 (0.3) million, including the following
items:
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| TAXES IN INCOME STATEMENT, MEUR | 1-3/2010 | 1-3/2009 | 1-12/2009 |
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| Withholding tax expenses in parent | -0.3 | -0.2 | -1.5 |
| company | | | |
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| Income taxes on the results of Group | -0.3 | | -1.4 |
| companies | | | |
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| Deferred tax asset based on tax | 0.1 | | 0.6 |
| allowances in India | | | |
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| Change in deferred tax liability based | | | |
| on: | | | |
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| - R&D capitalisation | 0.3 | -0.1 | 2.2 |
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| - dividend tax in India | -0.1 | | -0.6 |
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| Other items | 0.1 | | -0.1 |
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| TAXES IN INCOME STATEMENT, TOTAL | -0.4 | -0.3 | -0.8 |
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Earnings per share were EUR -0.04 (-0.03). Equity per share at the end of the
period was EUR 1.08 (31.12.2009: 1.05).
FINANCING AND INVESTMENTS
Tecnotree's liquid funds totalled EUR 27.2 (31.12.2009: 25.7) million. The
change in cash and cash equivalents for the review period was EUR 0.6 million.
The balance sheet total on 31 March 2010 stood at EUR 120.2 (31.12.2009: 118.5)
million. Interest-bearing liabilities were EUR 18.9 (31.12.2009: 18.9) million.
The net debt to equity ratio (net gearing) was -11.5 per cent 31.12.2009: -10.8
%). The balance sheet structure remained strong and the equity ratio on 31 March
2010 was 66.4 per cent (31.12.2009: 65.7 %).
Tecnotree's gross capital expenditure during the review period, excluding the
capitalisation of development costs, was EUR 0.1 (0.3) million or 0.9 per cent
(2.8 %) of net sales.
Financial income and expenses (net) during the review period totalled EUR -0.6
(0.3) million.
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| FINANCIAL INCOME AND EXPENSES, MEUR | 1-3/2010 | 1-3/2009 | 1-12/2009 |
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| Interest income | 0.0 | 0.2 | 0.3 |
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| Exchange rate gains | 0.1 | 0.3 | 0.4 |
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| Other financial income | 0.2 | 0.1 | 0.6 |
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| FINANCIAL INCOME, TOTAL | 0.3 | 0.5 | 1.3 |
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| Interest expenses | -0.4 | -0.2 | -0.9 |
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| Exchange rate losses | -0.5 | -0.0 | -0.8 |
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| Other financial expenses | -0.0 | -0.0 | -0.1 |
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| FINANCIAL EXPENSES, TOTAL | -0.8 | -0.2 | -1.8 |
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| CHANGE IN WORKING CAPITAL, MEUR | 1-3/2010 | 1-3/2009 | 1-12/2009 |
| (increase - / decrease +) | | | |
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| Change in trade receivables | 3.2 | 2.1 | 1.5 |
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| Change in other short-term receivables | -1.8 | 0.4 | 10.9 |
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| Change in inventories | 0.2 | -0.4 | -0.1 |
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| Change in trade payables | 1.3 | 1.0 | -1.5 |
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| Change in other current liabilities | -1.1 | -1.0 | 3.3 |
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| CHANGE IN WORKING CAPITAL, TOTAL | 1.8 | 2.0 | 14.1 |
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SEGMENT INFORMATION
As from the beginning of 2010, the operating segments under IFRS 8 reported by
Tecnotree are the geographical areas, which are Americas (North, Central and
South America), Europe, MEA (Middle East and Africa), and APAC (Asia Pacific).
This is because their results are monitored separately in the company's internal
financial reporting. Tecnotree's chief operating decision maker, as referred to
in IFRS 8, is the Group's management board.
Net sales and the result for the operating segments are presented based on the
location of customers. The result of the operating segments includes the costs
that can be allocated to the segments on a reasonable basis. Common costs for
the whole Group as well as taxes and financial items are not allocated.
GEOGRAPHICAL AREAS
Tecnotree Group operates in the following geographical areas: Americas (North,
Central and South America), Europe, MEA (Middle East and Africa) and APAC (Asia
Pacific).
Americas (North, Central and South America)
The order book grew considerably in Latin America. Tecnotree obtained major new
customers in the region and demand turned out to be strong especially for the
new products made in India. It seems that mobile phone operators in the region
are significantly increasing their level of investment from the previous year.
Europe
Sales in Europe increased mainly due to good maintenance sales. The degree of
completion of delivery projects in progress rose as planned. European operators
seem to be making bigger investments than in the previous year, especially in
eastern Europe.
MEA (Middle East and Africa)
In the Middle East and Africa, sales and the order book grew considerably. Sales
of billing, customer management and managed services solutions increased in
particular. The investment needs of operators in the region remain strong,
boosted by the growth in subscriber numbers.
APAC (Asia Pacific)
Sales in the APAC region grew significantly from the corresponding period in the
previous year. The willingness of operators to make investments varies greatly
from one country to another, but overall seems to be better than in 2009.
RESEARCH AND DEVELOPMENT
Research and development costs during the review period totalled EUR 3.3 (3.7)
million, corresponding to 23.7 per cent (31.8 %) of net sales. EUR 0.2 (1.3)
million of development costs were capitalised. Once the projects are completed,
these capitalized costs will be amortised over 3-5 years from the start of
commercial use. R&D costs of EUR 1.5 (1.0) million were amortised during the
review period.
PERSONNEL
At the end of March 2010 Tecnotree employed 759 (31.12.2009: 779) persons, of
whom 80 (31.12.2009: 83) worked in Finland and 679 (31.12.2009: 696) elsewhere.
The company employed on average 756 (353) people during the review period.
Personnel by country were as follows:
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| | 1-3/2010 | 1-3/2009 | 1-12/2009 |
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| Personnel, at end of period | 759 | 350 | 779 |
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| Finland | 80 | 91 | 83 |
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| Ireland | 68 | 138 | 87 |
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| Brazil | 47 | 65 | 49 |
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| India | 513 | 0 | 507 |
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| Other countries | 51 | 56 | 53 |
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| Personnel, average | 756 | 353 | 665 |
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| Personnel expenses before R&D | 7.0 | 6.4 | 32.3 |
| capitalisation (MEUR) | | | |
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TECNOTREE'S SHARES AND SHARE CAPITAL
At the end of March 2010 the shareholders' equity of Tecnotree Corporation stood
at EUR 79.2 (31.12.2009: 77,2) million and the share capital was EUR 4.7
million. The total number of shares was 73,630,977. The company held 134,800 of
these shares, which represents 0.18 per cent of the company's total number of
shares and votes. Equity per share was EUR 1.08 (31.12.2009: 1,05).
A total of 3,628,957 Tecnotree shares (EUR 3,342,955) were traded on the
Helsinki Exchanges during the period 2 January - 31 March 2010, representing 4.9
per cent of the total number of shares.
The highest share price quoted in the period was EUR 1.00 and the lowest EUR
0.86. The average quoted price was EUR 0.92 and the closing price on 31 March
2010 was EUR 0.97. The market capitalisation of the share stock at the end of
the period was EUR 71,422,048.
ANNUAL GENERAL MEETING
The Annual General Meeting of Tecnomen Lifetree Corporation held on 25 March
2010 confirmed the financial statements and the consolidated financial
statements for the financial year 2009 and discharged the Board of Directors and
the CEO from liability for 2009. The Annual General Meeting resolved, in
accordance with the proposal of the Board of Directors, that no dividend be paid
for 2009, and that the parent company's loss for the financial year, EUR
22,656,856.24, be covered by non-restricted equity reserves.
Amendments to Articles of Association
The Annual General Meeting resolved in accordance with the proposal of the Board
of Directors to amend Section 1 of the company's Articles of Association
regarding the business name of the company and Section 11 regarding notice of
the Annual General Meeting. The new business name of the Company is Tecnotree
Oyj, in Swedish Tecnotree Abp and in English Tecnotree Corporation. The new
business name was registered on 13 April 2010.
Board of Directors
The Annual General Meeting confirmed that the Board of Directors will consist of
eight members. Atul Chopra, Johan Hammarén, Pentti Heikkinen, Harri Koponen,
Christer Sumelius, Hannu Turunen and David White were re-elected as Board
members. Ilkka Raiskinen was elected as a new Board member. The Board members
were elected for a period of office that ends at the close of the first Annual
General Meeting following their election. At the organizational meeting of the
Board of Directors following the Annual General Meeting, Hannu Turunen was
re-elected as Chairman and Johan Hammarén as Vice Chairman of the Board of
Directors.
The Annual General Meeting resolved that the annual remuneration for the
Chairman of the Board of Directors is EUR 50,000, for the Vice-Chairman EUR
30,000 and for ordinary Board members EUR 23,000. In addition it was decided
that a fee of EUR 800 is paid to the Chairman and EUR 500 to other Board members
for attendance at Board and Committee meetings.
Auditors
KPMG Oy Ab, Authorised Public Accountants, will continue as the Company's
auditor, with Sixten Nyman, APA, as principal auditor, until the end of the
following Annual General Meeting.
Authorisations
The Annual General Meeting authorised the Board of Directors in accordance with
the proposal of the Board of Directors to decide on the acquisition of a maximum
of 7,360,000 Company shares. Own shares may be acquired with unrestricted
shareholders' equity otherwise than in proportion to the holdings of the
shareholders through public trading of the securities on NASDAQ OMX Helsinki Oy
at the market price of the shares in public trading at the time of the
acquisition. Own shares can be acquired for the purpose of developing the
capital structure of the Company, carrying out corporate acquisitions or other
business arrangements to develop the business of the Company, financing capital
expenditure, to be used as part of the Company's incentive schemes, or to be
otherwise retained in the possession of the Company, disposed of or nullified in
the extent and manner decided by the Board of Directors. The Board of Directors
will decide on other terms of the share acquisition. The authorisation is valid
for one year from the decision of the Annual General Meeting.
The Annual General Meeting authorised the Board of Directors in accordance with
the proposal of the Board of Directors to decide to issue and/or to convey a
maximum of 17,800,000 new shares and/or the Company's own shares either against
payment or for free. New shares may be issued and the Company's own shares may
be conveyed to the Company's shareholders in proportion to their current
shareholdings in the Company or, waiving the pre-emption right of shareholders,
through a directed share issue if the Company has weighty financial grounds for
so doing. The Board of Directors may also decide on a free share issue to the
Company itself. Under this authorization, the Board of Directors may grant the
special rights referred to in Chapter 10, Section 1 of the Companies Act, which
carry the right to receive, against payment, new shares of the Company or the
Company's own shares held by the Company such that the subscription price of the
shares is paid in cash or by using the subscriber's receivable to set off the
subscription price. The Board of Directors shall decide on other terms and
conditions relating to the share issues and to the granting of the special
rights. These authorisations are valid for one year from the decision of the
Annual General Meeting.
STOCK OPTION PROGRAMMES
During the review period the company had in force the 2006 and 2009 stock option
programmes. At its meeting on 3 February 2010, the Board of Directors of
Tecnotree decided to offer holders of 2006B option rights an exchange such that
fifteen (15) Tecnotree 2006B option rights can be exchanged for two (2)
Tecnotree 2009A option rights. The exchange offer was for holders of 2006B stock
options currently employed by Tecnotree. Based on this offer, a total of 494,000
2006B option rights were exchanged for 65,867 2009A option rights.
In addition to the offer to exchange stock options, the Board of Directors of
Tecnotree decided to allocate 2009 stock options to key company employees. A
total of 1,512,160 stock options were then allocated as follows:
354,750 2009A stock options
476,580 2009B stock options and
680,830 2009C stock options.
Vesting of the 2009B and 2009C stock options will partly be based on
performance. The stock options form a part of the incentive and commitment
programme for key personnel.
The state of the options on 31 March 2010 was as follows:
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| Option | Maximum | Number of | Exercise period | Exercise |
| series | number of | granted | | price |
| | options | options | | |
--------------------------------------------------------------------------------
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| 2006A | 667,000 | 304,000 | 1.4.2007-30.4.2010 | 2.47 |
--------------------------------------------------------------------------------
| 2006B | 173,000 | 173,000 | 1.4.2008-30.4.2011 | 1.32 |
--------------------------------------------------------------------------------
| 2006C | 667,000 | | 1.4.2009-30.4.2012 | 0.98 |
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| Total | 1,507,000 | 971,000 | | |
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| 2009A | 1,026,005 | 686,171 | 1.4.2009-31.3.2011 | 0.86 |
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| 2009B | 2,394,013 | 1 096,207 | 1.4.2010-31.3.2012 | 0.86 |
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| 2009C | 3,420,018 | 1 566,011 | 1.4.2011-31.3.2013 | 0.86 |
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| Total | 6,840,036 | 3 348,389 | | |
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| 2006 and | 8,347,036 | 3 825,389 | | |
| 2009 | | | | |
| total | | | | |
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Altogether 8,347,036 stock options remained on 31 March 2010 of all the
company's stock options in circulation. The shares that could be subscribed on
the basis of these stock options accounted for a maximum of 10.18 % of the
Company's shares and the votes carried by the shares after any increase in share
capital. On 31 March 2010 the Company still held 4,521,647 of all the current
stock options. The issued stock options had a maximum diluting effect on 31
March 2010 of 4.94%.
The company's Board of Directors may issue stock options such that their maximum
dilution shall not exceed 8.50 %.
RISKS AND UNCERTAINTY FACTORS
The risks and uncertainty factors for Tecnotree are explained in the report of
the Board of Directors presented in the 2009 Annual Report. The risks and
uncertainties to which the company is exposed in the near future relate to major
projects that are under negotiation and to their timing, to receivables, and to
changes in currency exchange rates. No significant changes have taken place in
the company's risks and uncertainty factors compared to the 2009 closing.
EVENTS AFTER THE END OF PERIOD
No significant events have occurred after the end of period.
PROSPECTS
Consistent with the improving market sentiment and demand, Tecnotree estimates
that net sales will be considerably higher in 2010 than in 2009. Higher sales
and lower costs are expected to improve profitability significantly and the
operating result should be positive.
Capitalization of R & D costs is expected to be clearly less in 2010 than in the
previous year. This is because product development has a greater emphasis on
customer specific projects and a lower cost base.
Variations between quarterly figures are expected to continue to be
considerable.
FINANCIAL INFORMATION
Tecnotree will publish its following interim reports as follows:
1-6/2010 Thursday, 12 August
1-9/2010 Wednesday, 27 October
Tecnotree is holding a conference for analysts and the media to announce its
results for the first quarter of 2010 at 10.00 am on 30 April 2010 in the
Pavilion conference room at the Scandic Hotel Simonkenttä, Simonkatu 9,
Helsinki. The interim review will be presented by President and CEO Eero Mertano
and the conference will be held in Finnish. The material to be presented at the
press conference will be available at www.tecnotree.com.
TECNOTREE CORPORATION
Board of Directors
FURTHER INFORMATION
Mr Eero Mertano, President and CEO, tel. +358 (0)50 535 4970
Mr Tuomas Wegelius, CFO, tel. +358 (0)400 433 228
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Main media
www.tecnotree.com
TABLE PART
The financial figures in the income statement, the balance sheet and key
indicators are presented in million euros. The figures shown here have been
calculated using exact values.
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| CONSOLIDATED INCOME STATEMENT, | | | | 1-3/2010 | 1-3/2009 | 1-12/2009 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
| NET SALES | | | | 14.1 | 11.5 | 53.3 |
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| Other operating income | | | | 0.0 | 0.0 | 0.3 |
--------------------------------------------------------------------------------
| Materials and services | | | | -2.1 | -2.0 | -10.7 |
--------------------------------------------------------------------------------
| Employee benefit expenses | | | | -7.1 | -5.6 | -29.2 |
--------------------------------------------------------------------------------
| Depreciation, amortisation and | | | | -2.1 | -1.4 | -6.6 |
| impairment charges | | | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | | | | -4.8 | -4.2 | -21.8 |
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| OPERATING RESULT | | | | -1.9 | -1.7 | -14.7 |
--------------------------------------------------------------------------------
| Financial income | | | | 0.3 | 0.5 | 1.3 |
--------------------------------------------------------------------------------
| Financial expenses | | | | -0.8 | -0.2 | -1.8 |
--------------------------------------------------------------------------------
| RESULT BEFORE TAXES | | | | -2.5 | -1.4 | -15.2 |
--------------------------------------------------------------------------------
| Income taxes | | | | -0.4 | -0.3 | -0.8 |
--------------------------------------------------------------------------------
| RESULT FOR THE PERIOD | | | | -2.8 | -1.7 | -16.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Allocated to: | | | | | | |
--------------------------------------------------------------------------------
| Equity holders of parent | | | | -2.8 | -1.7 | -16.1 |
| company | | | | | | |
--------------------------------------------------------------------------------
| Non-controlling | | | | 0.0 | | 0.0 |
| interest | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share calculated | | | | | | |
| from the profit attributable | | | | | | |
| to equity holders of parent | | | | | | |
| company: | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, basic, EUR | | | | -0.04 | -0.03 | -0.24 |
--------------------------------------------------------------------------------
| Earnings per share, diluted, | | | | -0.04 | -0.03 | -0.24 |
| EUR | | | | | | |
--------------------------------------------------------------------------------
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| CONSOLIDATED STATEMENT OF | | | | 1-3/2010 | 1-3/2009 | 1-12/2009 |
| COMPREHENSIVE INCOME, MEUR | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR THE PERIOD | | | | -2.8 | -1.7 | -16.1 |
--------------------------------------------------------------------------------
| Other comprehensive income: | | | | | | |
--------------------------------------------------------------------------------
| Translation differences from | | | | 4.7 | 0.1 | 0.4 |
| foreign operations | | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income, | | | | 4.7 | 0.1 | 0.4 |
| net of tax | | | | | | |
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| TOTAL COMPREHENSIVE INCOME FOR | | | | 1.9 | -1.6 | -15.6 |
| THE PERIOD | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Allocated to: | | | | | | |
--------------------------------------------------------------------------------
| Equity holders of parent | | | | 1.9 | -1.6 | -15.7 |
| company | | | | | | |
--------------------------------------------------------------------------------
| Non-controlling | | | | 0.0 | | 0.0 |
| interest | | | | | | |
--------------------------------------------------------------------------------
| CONSOLIDATED CONDENSED BALANCE SHEET, | | 31.3.201 | 31.3.200 | 31.12.200 |
| MEUR | | 0 | 9 | 9 |
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| Assets | | | | |
--------------------------------------------------------------------------------
| Goodwill | | 21.8 | 0.7 | 20.0 |
--------------------------------------------------------------------------------
| Other intangible assets | | 22.3 | 19.6 | 23.5 |
--------------------------------------------------------------------------------
| Tangible assets | | 7.2 | 7.0 | 7.3 |
--------------------------------------------------------------------------------
| Deferred tax assets | | 1.8 | 0.1 | 1.5 |
--------------------------------------------------------------------------------
| Other non-current trade and other | | 0.9 | 0.5 | 0.9 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | | 1.2 | 1.5 | 1.3 |
--------------------------------------------------------------------------------
| Trade receivables | | 17.1 | 12.1 | 19.3 |
--------------------------------------------------------------------------------
| Other receivables | | 19.9 | 24.4 | 17.2 |
--------------------------------------------------------------------------------
| Investments | | 0.9 | | 1.6 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | | 27.2 | 51.5 | 25.7 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | | 120.2 | 117.4 | 118.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity | | 79.2 | 81.9 | 77.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | | 3.8 | 4.6 | 3.9 |
--------------------------------------------------------------------------------
| Non-current interest-bearing | | 16.7 | | 16.7 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Other non-current liabilities | | 0.3 | 0.0 | 0.3 |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Current interest-bearing liabilities | | 2.3 | 20.0 | 2.3 |
--------------------------------------------------------------------------------
| Trade payables and other liabilities | | 18.0 | 11.0 | 18.1 |
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| EQUITY AND LIABILITIES, TOTAL | | 120.2 | 117.4 | 118.5 |
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CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY, MEUR
A = Share capital
B = Share premium fund
C = Own shares
D = Translation differences
E = Invested non-restricted equity reserve
F = Other reserves
G = Retained earnings
H = Total equity attributable to equity holders of parent company
I = Non-controlling interest
J = Total shareholders' equity
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| MEUR | A | B | C | D | E | F | G | H | I | J |
--------------------------------------------------------------------------------
| Sharehold | 4. | 0.8 | -0. | 0.4 | 12.6 | 52.1 | 6.6 | 77.1 | 0.1 | 77.2 |
| ers' | 7 | | 1 | | | | | | | |
| equi | | | | | | | | | | |
| ty | | | | | | | | | | |
| 1 Jan. | | | | | | | | | | |
| 2010 | | | | | | | | | | |
--------------------------------------------------------------------------------
| Covering | | | | | | -22. | 22.7 | 0.0 | | 0.0 |
| of loss | | | | | | 7 | | | | |
--------------------------------------------------------------------------------
| Share-bas | | | | | | | 0.2 | 0.2 | | 0.2 |
| ed | | | | | | | | | | |
| payments | | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | -0.1 | -0.1 | | -0.1 |
| adjustmen | | | | | | | | | | |
| ts | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | 4.7 | | | -2.8 | 1.9 | 0.0 | 1.9 |
| comprehen | | | | | | | | | | |
| sive | | | | | | | | | | |
| income | | | | | | | | | | |
| for the | | | | | | | | | | |
| period | | | | | | | | | | |
--------------------------------------------------------------------------------
| Sharehold | 4. | 0.8 | -0. | 5.1 | 12.6 | 29.4 | 26.5 | 79.1 | 0.0 | 79.2 |
| ers' | 7 | | 1 | | | | | | | |
| equity | | | | | | | | | | |
| 31 Mar. | | | | | | | | | | |
| 2010 | | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR | A | B | C | D | E | F | G | H/J |
--------------------------------------------------------------------------------
| Shareholde | 4.7 | 0.8 | -0.1 | -0.1 | 0.3 | 50.6 | 27.3 | 83.5 |
| rs' | | | | | | | | |
| equity | | | | | | | | |
| 1 Jan. | | | | | | | | |
| 2009 | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | 0.1 | | | -1.8 | -1.6 |
| comprehens | | | | | | | | |
| ive income | | | | | | | | |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Shareholde | 4.7 | 0.8 | -0.1 | 0.1 | 0.3 | 50.6 | 25.5 | 81.9 |
| rs' equity | | | | | | | | |
| 31 Mar. | | | | | | | | |
| 2009 | | | | | | | | |
--------------------------------------------------------------------------------
In June 2009 a total dividend of EUR 5,097,325.52 was paid, or EUR 0.07 per
share on 72,818,936 shares.
--------------------------------------------------------------------------------
| CONSOLIDATED CONDENSED CASH FLOW | | 1-3/2010 | 1-3/2009 | 1-12/2009 |
| STATEMENT, MEUR | | | | |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | | |
--------------------------------------------------------------------------------
| Result for the period | | -2.8 | -1.7 | -16.1 |
--------------------------------------------------------------------------------
| Adjustments of the result | | 1.8 | 1.5 | 7.9 |
--------------------------------------------------------------------------------
| Changes in working capital | | 1.8 | 2.0 | 14.1 |
--------------------------------------------------------------------------------
| Interest paid | | -0.1 | -0.0 | -1.2 |
--------------------------------------------------------------------------------
| Interest received | | 0.0 | 0.2 | 0.4 |
--------------------------------------------------------------------------------
| Income taxes paid | | -0.7 | -0.2 | -3.2 |
--------------------------------------------------------------------------------
| Net cash flow from operating | | 0.1 | 2.0 | 2.0 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries less | | | | -14.0 |
| cash and cash equivalents at acq. | | | | |
| date | | | | |
--------------------------------------------------------------------------------
| Transactions with minority | | | | -0.7 |
--------------------------------------------------------------------------------
| Investments in intangible assets | | -0.2 | -1.3 | -5.3 |
--------------------------------------------------------------------------------
| Investments in tangible assets | | -0.1 | -0.3 | -1.2 |
--------------------------------------------------------------------------------
| Investments in other securities | | -0.1 | | -0.8 |
--------------------------------------------------------------------------------
| Proceeds from disposal of other | | 0.9 | | 0.3 |
| securities | | | | |
--------------------------------------------------------------------------------
| Interest received from investments | | 0.0 | | 0.1 |
--------------------------------------------------------------------------------
| Dividends received from investments | | 0.1 | | 0.1 |
| | | | | |
--------------------------------------------------------------------------------
| Net cash flow from investing | | 0.5 | -1.6 | -21.5 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | | |
--------------------------------------------------------------------------------
| Repayments of borrowings | | | | -1.4 |
--------------------------------------------------------------------------------
| Dividend paid | | | | -5.1 |
--------------------------------------------------------------------------------
| Net cash flow from financing | | - | - | -6.5 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase (+) and decrease (-) in | | 0.6 | 0.3 | -26.0 |
| cash and cash equivalents | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at beg. | | 25.7 | 51.0 | 51.0 |
| of period | | | | |
--------------------------------------------------------------------------------
| Impact of changes in exchange rates | | 0.9 | 0.1 | 0.4 |
--------------------------------------------------------------------------------
| Change in fair value of investments | | 0.0 | 0.1 | 0.2 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of | | 27.2 | 51.5 | 25.7 |
| period | | | | |
--------------------------------------------------------------------------------
ACCOUNTING PRINCIPLES FOR THE INTERIM REPORT
This interim report has been prepared in accordance with IFRS reporting and
evaluation principles and applying the same accounting principles as in the
previous annual financial statements, but not complying with all the
requirements of IAS 34 Interim Financial Reporting. The new and revised IFRS
regulations that came into force on 1 January 2010 have not had a significant
impact on the accounting principles and basis for preparing the interim report.
As from the beginning of 2010, Tecnotree has changed the operating segments
under IFRS 8, now being the geographical areas: Americas (North, Central and
South America), Europe, MEA (Middle East and Africa), and APAC (Asia Pacific).
On 31 March 2010, the purchase price calculation of Tecnotree India presented in
the financial statements is still preliminary, since the determination of the
fair value of the company's assets is partly incomplete.
SEGMENT INFORMATION
The changes in segment reporting are explained in the first part of this interim
report.
--------------------------------------------------------------------------------
| OPERATING SEGMENTS: | | | 1-3/2010 | 1-3/2009 | 1-12/2009 | |
| NET SALES, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Americas (North, Central | | | 4.5 | 7.0 | 23.1 | |
| and South America) | | | | | | |
--------------------------------------------------------------------------------
| Europe | | | 2.0 | 1.6 | 5.2 | |
--------------------------------------------------------------------------------
| MEA (Middle East and | | | 5.9 | 2.1 | 21.3 | |
| Africa) | | | | | | |
--------------------------------------------------------------------------------
| APAC (Asia Pacific) | | | 1.8 | 0.8 | 3.6 | |
--------------------------------------------------------------------------------
| TOTAL | | | 14.1 | 11.5 | 53.3 | |
--------------------------------------------------------------------------------
| | CONSOLIDATED CONTINGENT | 31.3.2010 | 31.3.2009 | 31.12.2009 |
| | LIABILITIES, MEUR | | | |
--------------------------------------------------------------------------------
| | Pledges given | 0.0 | 0.1 | 0.0 |
--------------------------------------------------------------------------------
| | Guarantees | | | |
--------------------------------------------------------------------------------
| | On own behalf | 0.6 | 0.0 | 0.6 |
--------------------------------------------------------------------------------
| | Other liabilities | | | |
--------------------------------------------------------------------------------
| | Restriction related to real | 0.4 | 0.4 | 0.4 |
| | estate in Ireland | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER OPERATING LEASES, MEUR | 31.3.2010 | 31.3.2009 | 31.12.2009 |
| Minimum rents payable based on other | | | |
| leases that cannot be cancelled: | | | |
--------------------------------------------------------------------------------
| Other operating leases | | | |
--------------------------------------------------------------------------------
| Less than one year | 0.7 | 0.6 | 0.7 |
--------------------------------------------------------------------------------
| Between one and five years | 0.5 | 0.4 | 0.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED KEY FINANCIAL FIGURES, | 1-3/2010 | 1-3/2009 | 1-12/2009 |
| MEUR | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investment, % | -6.8 | -4.6 | -13.5 |
--------------------------------------------------------------------------------
| Return on equity, % | -14.4 | -8.4 | -20.0 |
--------------------------------------------------------------------------------
| Equity ratio, % | 66.4 | 69.7 | 65.7 |
--------------------------------------------------------------------------------
| Net gearing, % | -11.5 | -38.5 | -10.8 |
--------------------------------------------------------------------------------
| Investments | 0.1 | 0.3 | 1.4 |
--------------------------------------------------------------------------------
| % of net sales | 0.9 | 2.8 | 2.7 |
--------------------------------------------------------------------------------
| Research and development | 3.3 | 3.7 | 14.5 |
--------------------------------------------------------------------------------
| % of net sales | 23.7 | 31.8 | 27.2 |
--------------------------------------------------------------------------------
| Order book | 21.9 | 11.7 | 11.7 |
--------------------------------------------------------------------------------
| Personnel, average | 756 | 353 | 665 |
--------------------------------------------------------------------------------
| Personnel, at end of period | 759 | 350 | 779 |
--------------------------------------------------------------------------------
| CONSOLIDATED KEY FIGURES PER SHARE, | 1-3/2010 | 1-3/2009 | 1-12/2009 |
| MEUR | | | |
--------------------------------------------------------------------------------
| Earnings per share, basic, EUR | -0.04 | -0.03 | -0.24 |
--------------------------------------------------------------------------------
| Earnings per share, diluted, EUR | -0.04 | -0.03 | -0.24 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.08 | 1.38 | 1.05 |
--------------------------------------------------------------------------------
| Number of shares at end of period, x | 73,496 | 59,142 | 73,496 |
| 1,000 | | | |
--------------------------------------------------------------------------------
| Number of shares on average, x 1,000 | 73,496 | 59,142 | 68,039 |
--------------------------------------------------------------------------------
| Share price, EUR | | | |
--------------------------------------------------------------------------------
| Average | 0.92 | 0.89 | 1.00 |
--------------------------------------------------------------------------------
| Lowest | 0.86 | 0.78 | 0.78 |
--------------------------------------------------------------------------------
| Highest | 1.00 | 0.96 | 1.21 |
--------------------------------------------------------------------------------
| Share price at end of period | 0.97 | 0.93 | 0.94 |
--------------------------------------------------------------------------------
| Market capitalisation of issued stock | 71.4 | 55.1 | 69.2 |
| at end of period, MEUR | | | |
--------------------------------------------------------------------------------
| Share turnover, million shares | 3.6 | 2.6 | 22.6 |
--------------------------------------------------------------------------------
| Share turnover, % of total | 4.9 | 4.3 | 30.7 |
--------------------------------------------------------------------------------
| Share turnover, MEUR | 3.3 | 2.3 | 23.2 |
--------------------------------------------------------------------------------
| Price/earnings ratio (P/E) | | | -3.97 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY KEY FIGURES | 1Q/10 | 4Q/09 | 3Q/09 | 2Q/09 | 1Q/09 | 4Q/08 |
--------------------------------------------------------------------------------
| Net sales, MEUR | 14.1 | 13.5 | 13.2 | 15.0 | 11.5 | 21.7 |
--------------------------------------------------------------------------------
| Net sales, change % | 22.8 | -37.7 | -27.4 | -32.6 | -24.1 | 13.3 |
--------------------------------------------------------------------------------
| Operating result, MEUR | -1.9 | -8.5 | -3.0 | -1.5 | -1.7 | 5.0 |
--------------------------------------------------------------------------------
| % of net sales | -13.5 | -62.8 | -23.0 | -10.0 | -14.9 | 23.1 |
--------------------------------------------------------------------------------
| Result before taxes, | -2.5 | -8.5 | -3.5 | -1.8 | -1.4 | 5.8 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel at end of | 759 | 779 | 842 | 820 | 350 | 354 |
| period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | -0.04 | -0.10 | -0.06 | -0.04 | -0.03 | 0.08 |
| basic, EUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | -0.04 | -0.10 | -0.06 | -0.04 | -0.03 | 0.08 |
| diluted, EUR | | | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.08 | 1.05 | 1.12 | 1.20 | 1.38 | 1.41 |
--------------------------------------------------------------------------------
| Net interest-bearing | -9.1 | -8.3 | -11.3 | -14.3 | -31.5 | -31.0 |
| liabilities, MEUR | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book, MEUR | 21.9 | 11.7 | 15.2 | 21.5 | 11.7 | 9.7 |
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