|
EVOX RIFA GROUP OYJ STOCK EXCHANGE RELEASE
April 25, 2003 at 10.00 a.m.
EVOX RIFA GROUP INTERIM REPORT JANUARY 1, 2003 –
MARCH 31, 2003
- Net sales in the first quarter of 2003 increased by 48.4
percent totalling EUR 19.8 million (EUR 13.3 million in
the corresponding period of 2002).
- Operating Margin (EBITDA) was positive, EUR 0.2 million,
for the first time since the second quarter of 2001.
- Operating loss was 0.9 million (loss EUR 2.7 million)
- Loss before extraordinary items was EUR 1.4 million (loss
EUR 2.6 million)
- Earnings per share was EUR – 0.008 (EUR –0.030)
- Order backlog on March 31, 2003 was EUR 14.8 million (EUR
11.3 million)
ECONOMIC DEVELOPMENT
Net Sales
Net sales of the Group totaled EUR 19.8 million (EUR 13.3
million) which is EUR 6.5 million more than during the same
period in the previous year. The net sales of BHC Components,
which was acquired in 2002, amounted to EUR 5.7 million.
The strategic investments, which were made in 2002 into the
Business Area Electrolytic Capacitors, increased the electrolytic
capacitors’ sales especially to the industrial electronics
sector. This development led the Business Area to increasingly
focus its activities on customer specified products and know-how.
Sales of both Business Areas to the automotive industry continued
to develop positively.
Profit
The operating loss of the Group was EUR 0.9 million (loss
EUR 2.7 million) and loss before extraordinary items was EUR
1.4 million (loss EUR 2.6 million).
The Operating Margin (EBITDA) of Evox Rifa Group was positive
for the first time since the second quarter of 2001. This
is the result of better capacity utilisation rate, improved
performance in production and realised cost savings.
Earnings per share was EUR – 0,008 (EUR –0.030)and
shareholders’ equity per share was EUR 0.125 (EUR 0.268).
Order backlog
The order backlog was EUR 14.8 million at the end of the
first quarter of 2003 (EUR 11.3 million at the end of the
corresponding period of 2002).
FINANCIAL STATUS AND CAPITAL EXPENDITURE
Liquid assets of the Group were EUR 6.9 million (EUR 6.3
million) and the equity ratio was 35.5 % (42.7 %) at the end
of first quarter of 2003. Unfavourable exchange rate developments
continued, and resulted as negative translation differences
of EUR 0.6 million in the equity.
The land areas owned by Evox Rifa in Kalmar, Sweden were
revalued as per January 1, 2003. This had a positive net effect
of EUR 1.9 million on the equity.
Better profitability has improved the financial situation
of the Group. The cash flow of the period includes EUR 0.7
million gains on sales of assets. The respective gains have
already been included in the 2002 income statement. Increased
sales have tied up additional capital in customer receivables.
The turnover rate of the inventories has improved.
The capital expenditure of EUR 0.3 million (EUR 0.8 million)
includes replacement investments both in Europe and in Asia.
SHARES AND SHARE CAPITAL
The nominal value of the shares of Evox Rifa Group Oyj is
EUR 0.05, the number of shares was 173.371.018 on March 31,
2003 and the share capital was EUR 8.668.550,90.THE ANNUAL
SHAREHOLDERS’ MEETING
The Annual General Shareholders’ Meeting held on April
2, 2003 decided according to the proposal of the Company’s
Board of Directors not to distribute dividend for 2002.
The Shareholders’ Meeting elected Mikko J. Aro, Henrik
Ehrnrooth, Veikko Laine, Jerker Molander and Jarmo Niemi as
members of the Board of Directors. The new Board elected Henrik
Ehrnrooth as Chairman and Jerker Molander as Vice Chairman
of the Board.
The Shareholders’ Meeting resolved to authorise the Board
of Directors to decide to increase the share capital by one
or several new issues and/or to take one or several convertible
loans, so that in a new issue of shares and/or in convertible
loans the share capital may be increased by an aggregate maximum
amount of EUR 1.733.710 or a smaller amount corresponding
to a maximum of one-fifth of the registered share capital
and the aggregate number of votes attaching to the shares
at the time of the authorisation decision of the Shareholders’
Meeting and the decision of the Board of Directors to increase
the share capital. The authorisation is in force for one year
from the date of the Annual Shareholders’ Meeting.
Authorised public accounting company KPMG Wideri Oy was appointed
auditor of the company.
PERSONNEL
The average number of personnel of Evox Rifa Group during
the first quarter of 2003 was 1196 (1158 during the corresponding
period in 2002). Production transfers from Sweden to Asia
resulted as a decision to make 50 persons redundant at the
Kalmar factory in Sweden in January – the effects of
which will be seen gradually during 2003. At the end of March
the Finnish factory had full employment after a long period
of lay-offs.
The President of Evox Rifa Group, Mr. Harri Launonen, resigned
effective January 31, 2003. The Board of Directors appointed
Ms. Tuula Ylhäinen the new President beginning February
1, 2003.
Evox Rifa Group has a new management team beginning in February.
The members are: Ms. Tuula Ylhäinen, President; Mr. Wee
Cheng Hoon, Director Business Area Film Capacitors; Mr. Lars-Göran
Stenberg, Director Business Area Electrolytic Capacitors;
Mr. Dale Price, Vice President Marketing; Mr. Kimmo Saarinen,
Vice President, R & D and Quality.
Mr. Olli Nermes has been appointed CFO of Evox Rifa Group
and member of the management team effective May 5, 2003.
BUSINESS AREA ELECTROLYTIC CAPACITORS
Net sales of the Business Area amounted to EUR 10.0 million.
For the first time electrolytic capacitors reached half of
the turnover of Evox Rifa Group. This is a result of the acquisition
of BHC Components, and of the start up of the Nantong plant
in China. The profitability of all units within the Business
Area was better than forecasted.
BUSINESS AREA FILM CAPACITORS
Net sales of the Business Area amounted to EUR 9.8 million.
The co-operation with Matsushita (Panasonic) has started off
as planned. The influence of the cooperation on the profit
of the Business Area will gradually be seen during the second
half of 2003.
Transferring the production of small-size capacitors from
Europe to Asia was continued. Decisions on respective lay-offs
in Europe were made. The production transfers will not cause
other major costs during the year, but some investments will
be carried out to improve the service level at the Indonesian
plant. The cost benefit from transfers will gradually be seen
beginning the second half of the year.
Profitability has been improving as forecasted, in spite
of hard price pressures that continued during the first quarter.
OUTLOOK FOR THE YEAR 2003
The market situation continues to be uncertain and no real
upturn in the market is expected to take place during the
second quarter. Price erosion will continue.
There is growth potential for electronics business in Asia
and Evox Rifa’s sales there will continue to increase,
but the effects of the SARS disease may- delay this development.
As a result of the integration of two new plants into Evox
Rifa Group in 2002 the total net sales for 2003 will grow
compared to the previous year. During 2003 the actions under
implementation are expected to improve the cost efficiency,
cash flow and profitability of the Group compared to the year
2002.
|
INCOME STATEMENT OF EVOX RIFA GROUP
|
|
|
31.3.2003
1000 EUR
|
31.3.2002
1000 EUR
|
31.12.2002
1000 EUR
|
|
NET SALES
|
19 812
|
13 347
|
69 839
|
|
Operating expenses
|
-19 666
|
-15 089
|
-74 596
|
|
Depreciations and write-downs
|
-1 019
|
-936
|
- 4 185
|
|
OPERATING PROFIT (LOSS)
|
-873
|
-2 678
|
-8 942
|
|
Financial income and expenses
|
-481
|
100
|
-797
|
|
PROFIT (LOSS) BEFORE APPROPRIATIONS
AND TAXES
|
-1 354
|
-2 578
|
-9 739
|
|
NET PROFIT (LOSS) FOR THE PERIOD
|
-1 435
|
-2 597
|
-8 735
|
|
BALANCE SHEET OF THE GROUP
|
|
ASSETS
|
31.3.2003
1000 EUR
|
31.3.2002
1000 EUR
|
31.12.2002
1000 EUR
|
|
FIXED ASSETS AND OTHER NON-
CURRENT ASSETS
|
|
|
|
|
Intangible assets
|
1 429
|
1 615
|
1 563
|
|
Tangible assets
|
22 828
|
20 015
|
21 431
|
|
Investments, non-current
|
110
|
92
|
92
|
|
INVENTORIES AND CURRENT ASSETS
|
|
|
|
|
Inventories
|
13 705
|
15 277
|
13 634
|
|
Long-term receivables
|
0
|
3
|
0
|
|
Short-term receivables
|
18 124
|
13 086
|
18 802
|
|
Cash and bank receivables
|
6 907
|
6 306
|
5 945
|
|
TOTAL NON-CURRENT AND CURRENT ASSETS
|
63 103
|
56 394
|
61 467
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
Share capital
|
8 669
|
4 334
|
8 669
|
|
Other restricted equity
|
16 666
|
12 989
|
14 722
|
|
Non-restricted equity
|
-3 657
|
5 909
|
-1 719
|
|
TOTAL SHAREHOLDERS’ EQUITY
|
21 678
|
23 232
|
21 672
|
|
MINORITY INTEREST LIABILITIES
|
734
|
847
|
788
|
|
Deferred tax liability
|
1 217
|
310
|
488
|
|
Long-term liabilities
|
21 351
|
17 524
|
20 250
|
|
Short-term liabilities
|
18 123
|
14 481
|
18 269
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
63 103
|
56 394
|
61 467
|
|
EVOX RIFA GROUP CASH FLOW STATEMENT
|
|
|
1.1.-
31.3.2003
|
1.1.-
31.3.2002
|
1.1.-
31.12.2002
|
|
Net cash from operating activities
|
-432
|
-633
|
-5 591
|
|
CASH FLOW FROM INVESTING ACTIVITIES
|
|
|
|
|
Acquisition of Group Companies
|
|
|
-5 329
|
|
Purchase of tangible and intangible assets
|
-311
|
-832
|
-1 683
|
|
Proceeds from sale of tangible and intangible assets
|
719
|
|
297
|
|
Net cash used in(-)/provided by(+) investing activities
|
408
|
-832
|
-6 715
|
|
CASH FLOW FROM FINANCING ACTIVITIES
|
|
|
|
|
Share issue
|
|
|
6 069
|
|
Change in interest bearing loans
|
1 090
|
1 323
|
5 598
|
|
Translation adjustment
|
-104
|
39
|
175
|
|
Net cash used in(-)/ provided by(+)financing activities
|
986
|
1 362
|
11 842
|
|
Increase(+)/decrease(-) in cash and
cash equivalents
|
962
|
-103
|
-464
|
|
Cash and cash equivalents at the
beginning of the period
|
5 945
|
6 409
|
6 409
|
|
Cash and cash equivalents at the
end of the period
|
6 907
|
6 306
|
5 945
|
The figures in the Group cash flow statement cannot be directly
traced from the balance sheet due to translation differences
and elimination of non-cash items.
|
EVOX RIFA GROUP KEY FIGURES
|
|
|
31.3.2003
|
31.3.2002
|
31.12.2002
|
|
Return on equity %, ROE
|
26.1%
|
-41.1%
|
- -36.3%
|
|
Return on investment %, ROI
|
-7.0%
|
-24.5%
|
-19.1%
|
|
Equity ratio %
|
35.5%
|
42.7%
|
36.5%
|
|
Gross investments in fixed assets, TEUR
|
296
|
814
|
7 147
|
|
% of net sales
|
1.5%
|
6.1%
|
10.2%
|
|
Earnings per share, EUR
|
-0,008
|
-0,030
|
-0,068
|
|
Equity per share, EUR
|
0.125
|
0.268
|
0.125
|
|
Order backlog, MEUR
|
14.8
|
11.3
|
13.6
|
|
Personnel, average
|
1 196
|
1 158
|
1 288
|
DERIVATIVE CONTRACTS
The company uses forward contracts and currency options to
hedge foreign currency denominated balance sheet items against
exchange rate fluctuations. The maturity of the forward contracts
and currency options vary from 1 to 3 months.
The market values of off-balance sheet derivative contracts
made to hedge the exchange rates fluctuations (1000 EUR):
|
Currency options
|
|
Bought options
|
|
Value at the time of contract
|
4 891
|
|
Market value 31.3.
|
30
|
|
Sold options
|
|
Value at the time of contract
|
3 004
|
|
Market value 31.3.
|
-3
|
|
Forward contracts
|
|
Value at the time of contract
|
454
|
|
Market value 31.3.
|
-12
|
The figures of this interim report are unaudited.
In Espoo on April 25, 2003
EVOX RIFA GROUP OYJ
Tuula Ylhäinen
President
For further information please contact:
Evox Rifa Group Oyj,
Tuula Ylhäinen,
President,
tel. +358 9 5406 5001
DISTRIBUTION
Helsinki Exchanges,
Main Media
|
