SCANFIL PLC INTERIM REPORT 28 OCTOBER 2015 9.50 A.M.
SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2015
July – September
– Turnover totalled EUR 135.8 million (Q3 2014: 56.7), up to 140.0%
– Operating profit EUR 5.2 million (5.2), 3.9% (9.2%) of turnover, up to 1.0%
– Operating profit excluding non-recurring items EUR 8.6 million (5.2), 6.4% (9.2%) of turnover
– Profit was EUR 2.8 million (3.8), down 27.6%
– Earnings per share amounted EUR 0.05 (0.07)
January – September
– Turnover totalled to EUR 234.5 million (1-9 2014: 164.9), up to 42.2%
– Operating profit EUR 10.2 million (12.9), 4.3% (7.8%) of turnover, down 21.2%
– Operating profit excluding non-recurring items EUR 14.4 million (13.2), 6.2% (8.0%) of turnover
– Profit for the review period was EUR 7.2 million (9.8), down 26.6%
– Earnings per share were EUR 0.12 (0.17)
PartnerTech AB has been consolidated into Scanfil Group as of 1 July 2015.
The operating profit for January–September includes a total of EUR 4.2 million of non-recurring expenses, comprised of EUR 2.1 million of entries related to the acquisition of PartnerTech AB and a write-down of EUR 2.1 million related to the Hungarian operations.
Scanfil revised its estimate of its turnover and operating profit in 2015, on 24 September 2015, estimating that the turnover will be EUR 360–385 million and the operating profit before non-recurring items will amount to EUR 17–21 million.
Scanfil’s previous estimate was that its turnover for 2015 will be EUR 350 – 365 million and operating profit before non-recurring items for 2015 was estimated to be EUR 14 – 18 million.
Petteri Jokitalo, CEO of Scanfil plc:
“Scanfil’s business operations developed favourably during the third quarter, with the growth in demand focusing on Europe. In particular, the development of PartnerTech’s turnover and profitability has been strong.
I am satisfied with the progress of the integration of PartnerTech. The new management has been appointed and will start as of the beginning of November. Measures to realize the synergy benefits are proceeding with the aim of pursuing annual synergy benefits of EUR 5 million as of 2017, at the latest. Feedback from customers on the acquisition and merger of the companies has been positive. We are making good progress to leverage our larger factory network, wider service range and higher volumes to increase competitiveness and customer satisfaction.”
ACQUIRED BUSINESS OPERATIONS
On 25 May 2015, Scanfil Plc announced a public tender offer to the shareholders in PartnerTech AB to tender all shares in PartnerTech to Scanfil for SEK 35 per share. A total of 12 487 738 shares had been tendered by the end of the acceptance period, corresponding to 98.6 percent of the shares and the voting rights in PartnerTech. The company has commenced the compulsory acquisition process to acquire the remaining shares. PartnerTech AB has been removed from the Main List of Nasdaq Stockholm.
The acquisition date of PartnerTech A was 2 July 2015. The purchase price for the current 98.6% holding is EUR 47.0 million. Scanfil financed the acquisition with a loan granted by Nordea Bank Finland Plc. Information on the acquired net assets is provided in the tables of the interim report. Of the purchase price, EUR 10.8 million was allocated to long-term customer relationships (including net deferred tax liabilities), and EUR 7.1 million of unallocated goodwill was recognized from the acquisition.
Scanfil believes that the merged company can increasingly meet customer needs globally. The merger will expand Scanfil’s service portfolio and factory network, as well as improve competitiveness e.g. through higher procurement volumes. The significantly expanded customer base will provide a great deal of new growth opportunities and decrease the customer risk. No single customer or customer segment dominates the company’s sales; the biggest customer contributes less than 15% and the biggest customer segment contributes about 35% of sales.
The integration of the companies has begun. The aim is to achieve annual cost synergy benefits of EUR 5 million by 2017. Restructuring of units with weak profitability and trimming of overlapping functions may cause non-recurring items during the next few years.
BUSINESS TRENDS
Scanfil’s turnover clearly increased year-on-year during the review period and stood at EUR 234.5 (164.9) million. The increase in sales is primarily attributable to the acquisition of PartnerTech on 1 July 2015. The development of sales was generally positive during the third quarter as well, and PartnerTech’s business, in particular, developed better than expected. PartnerTech’s customer accounts significantly increased Scanfil’s turnover in almost all customer sectors. In addition, operations expanded into a new sector, Defence, Oil & Gas and Maritime.
Turnover was divided between different customer groups as follows (including PartnerTech as of 1 July 2015):
| EUR, million | Q1-Q3 2014 | Q1-Q3 2015 | change | % of turnover | |
| Defence, Oil & Gas and Maritime | 5,2 | 2,2 % | |||
| Energy and Automation | 47,1 | 52,3 | 11,0 % | 22,3 % | |
| MedtecH, Life Science, | |||||
| Environmental Measurement | 10,8 | 27,4 | 154,8 % | 11,7 % | |
| Networks | 37,2 | 49,0 | 31,7 % | 20,9 % | |
| Urban applications | 66,3 | 82,8 | 25,0 % | 35,3 % | |
| Other industries | 3,6 | 17,8 | 402,0 % | 7,6 % | |
| Total | 164,9 | 234,5 | |||
FINANCIAL DEVELOPMENT
The Group’s turnover for January – September was EUR 234.5 (164.9) million. The breakdown of turnover by regional segment was as follows: Europe and USA 69% (60%), Asia 31% (40%).
PartnerTech AB has been consolidated into Scanfil Group as of 1 July 2015.
The Group’s operating profit for January–September was EUR 10.2 (12.9) million, representing 4.3% (7.8%) of turnover. The operating profit includes a total of EUR 4.2 million of non-recurring expenses, comprised of EUR 2.1 million of entries related to the acquisition of PartnerTech AB and a write-down of EUR 2.1 million related to the Hungarian operations. The development of the Hungarian business has fallen short of expectations, and the company’s future outlook has also been lowered. As a consequence, the company has recorded a write-down of goodwill, based on impairment testing. Operating profit excluding non-recurring items was EUR 14.4 million, representing 6.2% of turnover. Non-recurring expenses for the previous year amounted to EUR 0.2 million.
Earnings for the review period amounted to EUR 7.2 (9.8) million. Earnings per share were EUR 0.12 (0.17) and return on investment was 10.3% (17.3%).
Turnover for July–September amounted to EUR 135.8 (56.7) million and operating profit was EUR 5.2 (5.2) million, or 3.9% (9.2%) of turnover. The operating profit for the quarter includes a total of EUR 3.4 million of non-recurring expenses, comprised of EUR 1.3 million of entries related to the acquisition of PartnerTech AB and a write-down of EUR 2.1 million related to the Hungarian operations. Operating profit excluding non-recurring items was EUR 8.6 million, representing 6.4% of turnover. Earnings for the quarter amounted to EUR 2.8 (3.8) million.
FINANCING AND CAPITAL EXPENDITURE
The Group’s financial position has changed as a result of the acquisition of PartnerTech AB, but it remains good. The consolidated balance sheet totalled EUR 307.3 (139.5) million. Liabilities amounted to EUR 207.1 (48.6) million, EUR 118.4 (33.5) million of which were non-interest-bearing and EUR 88.7 (15.1) million interest-bearing. The equity ratio was 32.8% (65.2%) and gearing 63.9% (-5.8%). The equity per share was EUR 1.74 (1.57).
Liquid cash assets totalled EUR 24.7 (20.4) million.
Net cash flow from operating activities for the review period January-September was EUR 7.4 (6.2) million. The change in net working capital during the period amounted to EUR -7.2 (-6.3) million. More capital has been tied up in working capital due to higher turnover. Cash flow from investments was EUR -49.0 million (-7.4) consisting mainly of PartnerTech AB acquisition. Cash flow from financing was EUR 46.4 (-7.5) million, including loan for acquiring PartnerTech AB, loan instalments and the use of a bank credit facility and payment of dividends.
Gross investments in fixed assets, excluding the acquisition of PartnerTech AB, in January–September totaled EUR 3.6 (7.5) million, which is 1.5% (4.6%) of the turnover. The investments were mainly acquisitions of machines and equipment. The investments for the previous year include the acquisition cost of Schaltex Systems GmbH shares, amounting to EUR 5.8 million. Depreciation totalled EUR 7.6 (3.3) million.
DECISIONS BY THE EXTRAORDINARY GENERAL MEETING
Scanfil plc’s Extraordinary General Meeting was held at company’s main office in Sievi on 20 August 2015.
The Meeting resolved that the Board of Directors consists of four members. Harri Takanen, Jarkko Takanen and Christer Härkönen were re-elected as Members of the Board of Directors and Bengt Engström as a new Board Member. The meeting decided that the remuneration of Chairman of the Board of Directors is EUR 2,200/month and remuneration of a member of the Board of Directors is EUR 1,700/month.
In its meeting, held after the General Meeting, the Board of Directors re-elected Harri Takanen as the Chairman of the Board of Directors.
BOARD OF DIRECTORS’ AUTHORISATION
The Annual General Meeting authorized on 8 April 2015 the Board of Directors to decide on the acquisition of the Company’s own shares, share issues and other special rights entitling their holders to shares in accordance with the Board of Directors’ proposal.
The Board of Directors’ proposals to the General Meeting and resolutions of the Meeting are available on the company website at www.scanfil.com.
The Board of Directors has no existing authorisations to issue convertible bonds with warrants.
SHARE TRADING AND SHARE PERFORMANCE
The highest trading price during the review period was EUR 3.38 and the lowest EUR 2.36, the closing price for the period standing at EUR 2.68. A total of 3,912,649 shares were traded during the period, corresponding to 6.8% of the total number of shares. The market value of the shares on 30 September 2015 was EUR 154.7 million.
PERSONNEL
Scanfil Group’s employed on the average 1,993 (1,763) employees during the review period. At the end of the period, the Group employed 3,514 (1,781) people, of whom 312 (237) worked in the company’s Finnish units and 3 202 (1,544) in the company’s units outside Finland. In all, 91% (87%) of the Group’s personnel were employed by subsidiaries outside Finland on 30 September 2015.
FUTURE PROSPECTS
Scanfil plc’s business has developed better than expected during the third quarter. Especially growth of PartnerTech’s sales has been strong and also profitability has developed better than expected. Due to this favourable development, Scanfil plc changed on 24 September 2015 its estimate of turnover and operating profit in 2015, estimating that the turnover will be EUR 360 – 385 million and the operating profit before non-recurring items will amount to EUR 17 – 21 million.
Scanfil’s previous estimate was that its turnover for 2015 will be EUR 350 – 365 million and operating profit before non-recurring items for 2015 was estimated to be EUR 14 – 18 million.
OPERATIONAL RISKS AND UNCERTAINTIES
A weakening of the global economy and a decrease in the international demand for capital goods could have a negative effect on the development of the business operations of Scanfil’s customers and could subsequently reduce demand in the contract manufacturing market. In addition, Scanfil is exposed to risks resulting from exchange rate fluctuations in its business operations.
Scanfil’s business operations have expanded in terms of the plant network, customer base and geographical regions with the acquisition of PartnerTech. However, the essential functions are the same as before. No new significant risks have been identified in conjunction with the acquisition of PartnerTech, and no essential changes have taken place in the risks related to Scanfil’s business during the year. The company’s risks and risk management are described in greater detail on the company’s website under Corporate Governance and in the notes to the consolidated financial statements.
ACCOUNTING PRINCIPLES
The interim report has been prepared in accordance with the IAS 34 Interim Financial Reporting standard, applying the following accounting policies with the financial statements for 2014. The foreign exchange rates published by Skandinaviska Enskilda Banken AB have been used in consolidating the Swedish subgroup.
All figures in the financial report have been rounded and consequently the sum of the individual figures can deviate from the sum figure. The figures are unaudited.
| Consolidated Income Statement | |||||
| EUR million | |||||
| 7 – 9 | 7 – 9 | 1 – 9 | 1 – 9 | 1 – 12 | |
| 2015 | 2014 | 2015 | 2014 | 2014 | |
| Turnover | 135.8 | 56.7 | 234.5 | 164.9 | 214.5 |
| Other operating income | 0.1 | 0.1 | 0.3 | 0.2 | 0.3 |
| Changes in inventories of finished goods | |||||
| and work in progress | 4.0 | -0.7 | 5.4 | 0.8 | -0.2 |
| Expenses | -129.7 | -49.7 | -222.5 | -149.7 | -193.8 |
| Depreciation | -5.0 | -1.1 | -7.6 | -3.3 | -4.6 |
| Operating profit | 5.2 | 5.2 | 10.2 | 12.9 | 16.2 |
| Financial income and expenses | -0.6 | 0.0 | 0.0 | -0.3 | -0.3 |
| Profit before taxes | 4.7 | 5.2 | 10.2 | 12.7 | 15.9 |
| Income taxes | -1.9 | -1.4 | -3.1 | -2.9 | -3.6 |
| Net profit for the period | 2.8 | 3.8 | 7.2 | 9.8 | 12.3 |
| Attributable to: | |||||
| Equity holders of the parent | 2.8 | 3.8 | 7.2 | 9.8 | 12.3 |
| Earnings per share for profit attributable to | |||||
| shareholders of the parent: | |||||
| undiluted and diluted | |||||
| earnings per share ( EUR) | 0.05 | 0.07 | 0.12 | 0.17 | 0.21 |
| Consolidated Statement of Comprehensive Income | |||||
| EUR million | |||||
| 7 – 9 | 7 – 9 | 1 – 9 | 1 – 9 | 1 – 12 | |
| 2015 | 2014 | 2015 | 2014 | 2014 | |
| Net profit for the period | 2.8 | 3.8 | 7.2 | 9.8 | 12.3 |
| Items that may later be recognized in profit or loss | |||||
| Translation differences | -1.4 | 4.0 | 2.7 | 3.4 | 4.6 |
| Derivative Financial Instrument | -0.7 | 0.0 | -0.3 | 0.1 | 0.1 |
| Other comprehensive income, net of tax | -2.1 | 4.0 | 2.3 | 3.5 | 4.7 |
| Total Comprehensive Income | 0.7 | 7.9 | 9.5 | 13.3 | 17.0 |
| Attributable to: | |||||
| Equity holders of the parent | 0.7 | 7.9 | 9.5 | 13.3 | 17.0 |
| Consolidated Statement of Financial Position | |||
| EUR million | |||
| Assets | 30.9.2015 | 30.9.2014 | 31.12.2014 |
| Non-current assets | |||
| Property, plant and equipment | 45.2 | 27.8 | 27.1 |
| Goodwill | 10.7 | 5.9 | 5.9 |
| Other intangible assets | 18.6 | 4.9 | 5.0 |
| Shares in group companies | 0.0 | 0.0 | 0.0 |
| Available-for-sale investments | 0.2 | ||
| Deferred tax assets | 3.4 | 0.4 | 0.3 |
| Total non-current assets | 77.9 | 39.1 | 38.4 |
| Current assets | |||
| Inventories | 90.6 | 35.4 | 35.5 |
| Trade and other receivables | 112.9 | 44.4 | 40.9 |
| Advance payments | 0.2 | 0.2 | 0.0 |
| Current Tax | 0.9 | ||
| Cash and cash equivalents | 24.7 | 20.4 | 19.2 |
| Total current assets | 229.3 | 100.3 | 95.7 |
| Total assets | 307.3 | 139.5 | 134.0 |
| Shareholder’s equity and liabilities | 30.9.2015 | 30.9.2014 | 31.12.2014 |
| Equity | |||
| Share capital | 2.0 | 2.0 | 2.0 |
| Translation differences | 15.5 | 11.6 | 12.9 |
| Other reserves | 5.9 | 6.0 | 6.0 |
| Reserve for invested unrestricted equity fund | 10.7 | 10.7 | 10.7 |
| Retained earnings | 66.0 | 60.5 | 63.0 |
| Total equity | 100.2 | 90.9 | 94.6 |
| Non-current liabilities | |||
| Provisions | 1.9 | 0.4 | 0.5 |
| Interest bearing liabilities | 54.7 | 4.6 | 0.5 |
| Deferred tax liabilities | 3.5 | 0.0 | |
| Total non-current liabilities | 60.1 | 5.0 | 1.0 |
| Current liabilities | |||
| Trade and other liabilities | 110.7 | 31.9 | 28.8 |
| Current tax | 2.2 | 1.2 | 0.9 |
| Interest bearing liabilities | 34.0 | 10.5 | 8.8 |
| Total current liabilities | 147.0 | 43.6 | 38.4 |
| Total liabilities | 207.1 | 48.6 | 39.4 |
| Total shareholder’s equity and liabilities | 307.3 | 139.5 | 134.0 |
| Consolidated Cash Flow Statement | |||
| EUR million | |||
| 1.1.-30.9.2015 | 1.1.-30.9.2014 | 1.1.-31.12.2014 | |
| Cash flow from operating activities | |||
| Net profit | 7.2 | 9.8 | 12.3 |
| Adjustments for the net profit | 11.4 | 5.3 | 7.5 |
| Change in net working capital | -7.2 | -6.3 | -5.2 |
| Paid interests and other financial expenses | -0.8 | -0.3 | -0.4 |
| Interest received | 0.2 | 0.1 | 0.2 |
| Taxes paid | -3.3 | -2.5 | -3.3 |
| Net cash from operating activities | 7.4 | 6.2 | 11.0 |
| Cash flow from investing activities | |||
| The acquisition of a subsidiary less cash | |||
| and cash equivalents at the time of acquisition | -45.3 | -5.8 | -5.8 |
| Investments in tangible and intangible assets | -3.9 | -1.7 | -2.3 |
| Sale of tangible and intangible assets | 0.1 | 0.1 | 0.1 |
| Proceeds from other investments | 0.1 | ||
| Net cash from investing activities | -49.0 | -7.4 | -8.0 |
| Cash flow from financing activities | |||
| Repayment of short-term loans | -1.7 | ||
| Proceeds from short term borrowings | 3.3 | ||
| Repayment of long-term loans | -4.9 | -5.2 | -10.5 |
| Proceeds from long term borrowings | 53.7 | 0.7 | 0.4 |
| Dividends paid | -4.0 | -2.9 | -2.9 |
| Net cash from financing activities | 46.4 | -7.5 | -13.0 |
| Net increase/decrease in cash and cash equivalents | 4.8 | -8.7 | -10.1 |
| Cash and cash equivalents at beginning of period | 19.2 | 28.2 | 28.2 |
| Changes in exchange rates | 0.7 | 1.0 | 1.1 |
| Cash and cash equivalents at end of period | 24.7 | 20.4 | 19.2 |
| Statement of changes in Consolidated Equity | ||||||
| EUR million | ||||||
| Equity attributable to equity holders of the parent company | ||||||
| Reserve for | ||||||
| invested | ||||||
| Share | Translation | Other | unrestricted | Retained | Equity | |
| Equity | capital | differences | reserves | equity fund | earnings | total |
| 1.1.2015 | 2.0 | 13.0 | 6.0 | 10.7 | 63.0 | 94.6 |
| Total comprehensive income | 2.7 | -0.3 | 7.2 | 9.5 | ||
| Fund transfer | 0.2 | -0.2 | 0 | |||
| Option Scheme | 0.1 | 0.1 | ||||
| Paid dividends | -4.0 | -4.0 | ||||
| Equity | ||||||
| 30.9.2015 | 2.0 | 15.5 | 5.9 | 10.7 | 66.0 | 100.2 |
| Equity attributable to equity holders of the parent company | ||||||
| Reserve for | ||||||
| invested | ||||||
| Share | Translation | Other | unrestricted | Retained | Equity | |
| Equity | capital | differences | reserves | equity fund | earnings | total |
| 1.1.2014 | 2.0 | 8.2 | 5.7 | 10.7 | 53.8 | 80.5 |
| Total comprehensive income | 3.4 | 0.1 | 9.8 | 13.3 | ||
| Fund transfer | 0.2 | -0.2 | 0 | |||
| Paid dividends | -2.9 | -2.9 | ||||
| Equity | ||||||
| 30.9.2014 | 2.0 | 11.6 | 6.0 | 10.7 | 60.5 | 90.9 |
| Key Indicators | |||
| 1 – 9 | 1 – 9 | 1 – 12 | |
| 2015 | 2014 | 2014 | |
| Return on equity, % | 9.9 | 15.2 | 14.0 |
| Return on investment, % | 10.3 | 17.3 | 16.5 |
| Interest-bearing liabilities, EUR million | 88.7 | 15.1 | 9.3 |
| Gearing, % | 63.9 | -5.8 | -10.5 |
| Equity ratio, % | 32.8 | 65.2 | 70.6 |
| Gross investments in fixed assets, EUR million | 3.6 | 7.5 | 8.2 |
| % of net turnover | 1.5 | 4.6 | 3.8 |
| Personnel, average | 1 993 | 1 763 | 1 764 |
| Earnings per share, EUR | 0.12 | 0.17 | 0.21 |
| Shareholders´ equity per share, EUR | 1.74 | 1.57 | 1.64 |
| Number of shares at | |||
| the end of period, 000´s | |||
| – not counting own shares | 57 730 | 57 730 | 57 730 |
| – weighted average | 57 730 | 57 730 | 57 730 |
| The company has a EUR 4.4 million loan in connection with which the company has entered | |||
| into interest and currency swap agreements to convert the SEK-denominated principal | |||
| and cash flows of instalments and interest payments into euros. The interest and | |||
| currency swap agreement fully hedges the instalments and interest payments against | |||
| fluctuations in exchange and interest rates. | |||
| Owing to the nature of the sector, the company´s order book covers only a short period of time and | |||
| does not give an accurate picture of future development. | |||
| Segment information | |||
| EUR million | 1 – 9 | 1 – 9 | 1 – 12 |
| 2015 | 2014 | 2014 | |
| Turnover | |||
| Europe and USA | 164.5 | 101.5 | 131.9 |
| Asia | 80.1 | 66.5 | 86.8 |
| Turnover between segments | -9.9 | -3.2 | -4.2 |
| Total | 234.5 | 164.9 | 214.5 |
| Operating profit | |||
| Europe and USA | 3.3 | 6.1 | 7.9 |
| Asia | 6.9 | 6.8 | 8.3 |
| Total | 10.2 | 12.9 | 16.2 |
| Assets | |||
| Europe and USA | 213.7 | 70.0 | 64.9 |
| Asia | 82.8 | 63.7 | 63.2 |
| Goodwill | 10.7 | 5.9 | 5.9 |
| Total | 307.2 | 139.5 | 134.0 |
| Acquired businesses | |||
| EUR million | |||
| Scanfil Plc acquired the Swedish contract manufacturing group PartnerTech AB in a public offer. | |||
| The date of acquisition was 2 July 2015. The purchase price for the current 98.6% holding is EUR 47.0 million. | |||
| The acquisition was financed with a EUR 50 million loan granted by Nordea Bank Finland Plc. | |||
| An interest swap has been signed with the bank to convert the interest on the loan to a fixed rate. | |||
| The loan includes ordinary covenants. | |||
| The expenses of EUR 1.2 million related to the acquisition are mainly comprised of advisory fees | |||
| and due diligence expenses. | |||
| The value of the acquired assets and liabilities on the date of acquisition were as follows: | |||
| Property, plant and equipment | 18.5 | ||
| Customer relations | 13.9 | ||
| Other intangible assets | 0.4 | ||
| Deferred tax assets | 2.9 | ||
| Inventories | 43.4 | ||
| Trade and other receivables | 58.4 | ||
| Current tax | 1.3 | ||
| Cash and cash equivalents | 1.7 | ||
| Total assets | 140.5 | ||
| Provisions | 2.3 | ||
| Deferred tax liabilities | 3.1 | ||
| Long-term interest bearing liabilities | 1.2 | ||
| Trade and other liabilities | 60.9 | ||
| Current tax | 1.1 | ||
| Short-term interest bearing liabilities | 31.4 | ||
| Total liabilities | 99.9 | ||
| Net assets total | 40.6 | ||
| Goodwill arising on acquisition: | |||
| Acquisition cost | 47.6 | ||
| Goodwill | -7.1 | ||
| Purchase price paid in cash | 47.0 | ||
| Cash and cash equivalents of the acquired company | 1.7 | ||
| Cash Flow | 45.3 | ||
| Of the purchase price, EUR 10.8 million was allocated to long-term customer relationships added with | |||
| deferred tax liabilities. EUR 7.1 million of unallocated goodwill was recognised from the acquisition. | |||
| PartnerTech AB has been consolidated into Scanfil Group as of 1 July 2015. | |||
| Scanfil’s turnover for January–September 2015 would have amounted to EUR 374.5 million and | |||
| profit to EUR 5.3 million had the acquired business operations been consolidated as | |||
| of 1 January 2015. | |||
| Changes in tangible non-current assets | |||
| EUR million | 1 – 9 | 1 – 9 | 1 – 12 |
| 2015 | 2014 | 2014 | |
| Book value at the beginning of the period | 27.1 | 28.5 | 28.5 |
| Additions | 3.3 | 1.4 | 1.7 |
| Consolidation of business operations | 18.3 | 0.2 | 0.3 |
| Deductions | 0.0 | -0.0 | -0.0 |
| Depreciations | -4.5 | -3.0 | -4.2 |
| Exchange rate differences | 1.0 | 0.7 | 0.9 |
| Book value at the end of the period | 45.2 | 27.8 | 27.1 |
| Financial assets and liabilities, carrying amount and fair value | |||
| EUR million | |||
| 30.9.2015 | 30.9.2015 | ||
| Book values of | Fair values of | ||
| balance sheet values | balance sheet values | ||
| Non-current assets | |||
| Available for sale investments | 0.0 | 0.0 | |
| Non-current assets total | 0.0 | 0.0 | |
| Current assets | |||
| Trade and other receivables | 105.2 | 105.2 | |
| Cash and cash equivalents | 24.7 | 24.7 | |
| Forward exchange contracts | 0.0 | 0.0 | |
| Current assets total | 129.9 | 129.9 | |
| Total financial assets | 129.9 | 129.9 | |
| Non-current financial liabilities | |||
| Interest bearing liabilities from financial institutions | 54.0 | 54.0 | |
| Financial leasing | 0.7 | 0.7 | |
| Non-current financial liabilities total | 54.7 | 54.7 | |
| Current financial liabilities | |||
| Interest bearing liabilities from financial institutions | 32.8 | 32.8 | |
| Derivative | 1.2 | 1.2 | |
| Financial leasing | 0.3 | 0.3 | |
| Trade and other payables | 88.2 | 88.2 | |
| Current financial liabilities total | 122.5 | 122.5 | |
| Total financial liabilities | 177.2 | 177.2 | |
| The valuation of derivatives is based on market data (level 2). | |||
| The valuation of available for sale investments is based on the acquisition cost (level 3) as the fair value | |||
| of the shares cannot be determined reliably. | |||
| Contingent Liabilities | |||
| EUR million | |||
| 1 – 9 | 1 – 9 | 1 – 12 | |
| 2015 | 2014 | 2014 | |
| Given business mortgages | 132.7 | 26.0 | 26.0 |
| Pledged accounts receivables | 35.6 | ||
| Pledged guarantees | 0.6 | 0.8 | 0.6 |
| Leasing liabilities and other lease liabilities | 25.6 | 2.7 | 2.6 |
| As part of financing the Partner Tech Ab acquisition Scanfil has applied for and pledged new business | |||
| mortgages, EUR 100 million. In addition, relating to acquiring PartnerTech Ab the group mortgages has grown. | |||
| Pledged accounts receivables are associated to financing subgroup PartnerTech working capital. | |||
| PartnerTech operates mainly in rented premises, which explains the growth of a lease. | |||
| In addition, Scanfil EMS Oy has provided a guarantee of any obligations arising from the subsidiary’s | |||
| delivery contracts with its customers. The guarantee is limited to a maximum of EUR 7.5 million and seven | |||
| years after the expiry of the last product agreement. PartnerTech AB has provided guarantees for two | |||
| suppliers expiring on 31 December 2015 covering possible trade obligations. | |||
| Scanfil plc has granted Nordea Bank Finland Plc an absolute guarantee for the payment of Scanfil EMS Oy’s | |||
| loan of originally EUR 40 million and resulting obligations to pay. The principal of the loan on Scanfil EMS | |||
| Oy’s balance sheet (FAS) on 30 September 2015 is EUR 4.4 million. | |||
| Scanfil plc has a credit limit associated with the Group account for EUR 9.0 million, for which Scanfil plc has | |||
| granted an absolute guarantee. Scanfil EMS Oy may use this credit limit. | |||
| Scanfil plc has provided Nordea Bank Finland plc with an absolute guarantee for the EUR 1.0 million credit | |||
| limit of Scanfil Kft and EUR 3.0 million credit limit of Scanfil GmbH, and Siemens Finance and Leasing GmbH | |||
| for Scanfil GmbH’s lease liabilities of EUR 0.3 million. | |||
| A total of EUR 3.3 million of the credit limits were in use on 30 September 2015. | |||
| Transactions with related parties | |||
| Scanfil EMS Oy has rented an office space from Kiinteistö Oy Pilot 1, which is owned by a company Jussi Real | |||
| Estate Oy whose head owners are e.g. Jussi Capital Oy and Rela Invest Oy. | |||
| Head owners of Jussi Capital are Jorma Takanen, Harri Takanen, Jarkko Takanen and Jonna Tolonen. | |||
| Owners of Rela Invest Oy include among others Reijo Pöllä. | |||
| Rental costs January – September 2015 were EUR 15 thousand (EUR 15 thousand in | |||
| January – September 2014). | |||
| Administrative service income from Sievi Capital plc were EUR 24 thousand from January – September 2015 | |||
| (EUR 33 thousand in January – September 2014). | |||
| Key indicators quarterly | ||||||||
| Q3/15 | Q2/15 | Q1/15 | Q4/14 | Q3/14 | Q2/14 | Q1/14 | Q4/13 | |
| Turnover, MEUR | 135.8 | 52.8 | 45.9 | 49.6 | 56.7 | 60.6 | 47.6 | 45.4 |
| Operating profit, MEUR | 5.2 | 2.3 | 2.7 | 3.3 | 5.2 | 5.2 | 2.5 | 2.5 |
| Operating profit, % | 3.9 | 4.3 | 5.8 | 6.6 | 9.2 | 8.6 | 5.3 | 5.6 |
| Net income, MEUR | 2.8 | 1.7 | 2.7 | 2.5 | 3.8 | 4.3 | 1.7 | 1.9 |
SCANFIL PLC
Petteri Jokitalo
CEO
Additional information:
CEO Petteri Jokitalo
Tel +358 8 4882 111
Distribution NASDAQ OMX, Helsinki
Major Media
www.scanfil.com
Scanfil Group is an international supplier and system supplier to the telecommunication and electronics industries with extensive experience in demanding contract manufacturing. Our customers include international operators in the automation, energy, data transmission and health technology sectors, and companies operating in fields related to urbanization, among other industries. Scanfil is listed on the Helsinki Stock Exchange. In 2014 the group’s turnover was EUR 215 million and it employed 1.800 people in Finland, China, Estonia, Hungary and Germany. In 2015 Scanfil acquired PartnerTech, a global industrial partner offering customized solutions throughout the product lifecycle, with a turnover of SEK 2.2 billion and some 1,400 employees in Sweden, Norway, Finland, Poland, the UK, the United States and China. The combined company will be a strong player in the international EMS market with a comprehensive global network of factories and an extensive service portfolio.
Not to be published or distributed, directly or indirectly, in any country where its distribution or publication is unlawful. Forward looking statements: certain statements in this stock exchange release may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Scanfil Oyj to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this stock exchange release, such statements use such words as “may,” “will,” “expect,” “anticipate,” “project,” “believe,” “plan” and other similar terminology. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of Scanfil Oyj to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking information contained in this stock exchange release is current only as of the date of this stock exchange release. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised, except as provided by the law or obligatory regulations, whether as a result of new information, changing circumstances, future events or otherwise.