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EVOX RIFA GROUP OYJ STOCK EXCHANGE RELEASE
on August 5, 2003 at 10.00 a.m.
EVOX RIFA GROUP INTERIM REPORT JANUARY 1, 2003 – JUNE
30, 2003
Net sales in the first half of 2003 increased by 29.9 percent
totalling EUR 39.3 million (EUR 30.3 million in the corresponding
period of 2002).
- Operating loss was 2.3 million (loss EUR 4.9 million)
- Loss before extraordinary items was EUR 3.0 million (loss
EUR 4.9 million)
- Earnings per share was EUR – 0.017 (EUR –0.053)
- Order backlog on June 30, 2003 was EUR 12.8 million (EUR
16.0 million)
ECONOMIC DEVELOPMENT
Net Sales
Net sales of the Group totaled EUR 39.3 million (EUR 30.3
million) which is EUR 9.0 million more than during the same
period in the previous year. The net sales of BHC Components,
which was acquired in May 2002, amounted to EUR 11.4 million
(EUR 3.1 million).
Profit
Operating loss of the Group was EUR 2.3 million (loss EUR
4.9 million) and loss before extraordinary items was EUR 3.0
million (loss EUR 4.9 million).
Earnings per share was EUR –0.017 (EUR –0.053)and
shareholders’ equity per share was EUR 0.115 (EUR 0.154).
Order backlog
The order backlog of the Group was EUR 12.8 million at the
end of the first half of 2003 (EUR 16.0 million at the end
of the corresponding period of 2002; with June 2003 currency
rates: EUR 14,8 million). The utilisation rate of the production
capacity was low and almost at the same level as in the previous
year.
Price erosion has been continuous during the period, which
partly explains the decrease in the value of the order backlog.
Price erosion continued due to the strength of the euro. Delivery
times are very short, and key customers are increasingly supplied
under JIT (Just-In- Time) arrangements, which also reduces
the order backlog.
FINANCIAL STATUS AND CAPITAL EXPENDITURE
Liquid assets of the Group were EUR 5.4 million (EUR 4.1
million) and the equity ratio was 34.3 % (39.3 %) at the end
of first half of 2003. Translation differences of the equities
of foreign group companies (USD, GBP, SEK, SGD) caused a 0,9
MEUR decrease in equity compared to the situation at the year
end in 2002.
The cash flow of the period includes a EUR 0.7 million gain
on sales of assets and a EUR 0.5 million tax return. The respective
gains have been included in the 2002 income statement.
The capital expenditure of EUR 0.7 million (EUR 6.4 million)
includes replacement investments both in Europe and in Asia.
Operative cash flow is expected to remain positive during
the rest of the year. To improve cost efficiency, efforts
have been intensified to increase turnover of working capital.
To improve assets utilisation Evox Rifa has started investigations
to sell some of its real estates.
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 June 30,
2003 and the share capital was EUR 8.668.550,90.
PERSONNEL
The average number of personnel of Evox Rifa Group during
the first half of 2003 was 1212 (1183 during the corresponding
period in 2002). The decision to make 50 persons redundant
at the Kalmar factory in Sweden was made in January –
the cost saving effects will be seen during the second half
of 2003.
BUSINESS AREA ELECTROLYTIC CAPACITORS
Net sales of the Business Area were EUR 20.2 million. Price
erosion increased during the period, and demand in the European
market is slowing down. The JIT concept has enabled more efficient
production planning, and the Business Area has been able to
meet the demands of short delivery times.
Profitability of the Chinese operation has developed as expected,
without major disturbances from the effects of SARS. Profitability
of the Business Area during the second quarter remained at
the same level as in the first quarter of 2003. The ongoing
process development projects will improve profitability in
the future.
BUSINESS AREA FILM CAPACITORS
Net sales of the Business Area were EUR 19.3 million. The
SARS outbreak caused a slowdown in the Asian market during
the second quarter. The market is now recovering, but with
strong price pressure conyinuing. Demand in Europe during
the second quarter has been lower than during the first quarter
of the year. Uncertainty is expected to continue in the European
market in the near future.
The transfer of the small size plastic film capacitor production
from Sweden to Indonesia was finalised as planned, and the
capacity can be fully utilised from the third quarter on.
Marketing efforts of the full SMD (Surface Mounted Device)
product range according to the Matsushita (Panasonic) agreement
continued, with a positive feedback from the market.
The profitability of the European plants did not improve as
expected during the second quarter, mainly because of the
strong euro and low demand in Europe.
OUTLOOK FOR THE YEAR 2003
Evox Rifa’s market environment is continuously uncertain.
The situation is not likely to improve in the USA or Europe
during the third quarter of 2003. The sales reflects the general
economic weakness in Europe and the USA. Growth in Asia will
continue, but with hard price pressures.
Evox Rifa will continue to cut costs and improve the efficiency
of its operations. The synergies within the group will be
further utilised in all business processes, with a strong
emphasis on global logistics and local service.
INCOME STATEMENT OF EVOX RIFA GROUP
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1.1. - 30.6.03
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1.1. - 30.6.02
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1.1. - 31.12.02
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1000 EUR
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1000 EUR
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1000 EUR
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| |
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NET SALES
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39 342
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30 290
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69 839
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Operating expenses
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-39 716
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-33 162
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-21 717
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Depreciations and write-downs
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-1 975
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-2 015
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-4 185
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OPERATING PROFIT (LOSS)
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-2 349
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-4 887
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-8 942
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Financial income and expenses
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-675
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34
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-797
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PROFIT (LOSS) BEFORE EXTRAORDINARY ITEMS
|
-3 024
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-4 853
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-9 739
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PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAXES
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-3 024
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-4 853
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-9 739
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NET PROFIT (LOSS) FOR THE PERIOD
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-2 907
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-4 612
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-8 735
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BALANCE SHEET OF THE GROUP
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ASSETS
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30.6.03
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30.6.02
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31.12.02
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1000 EUR
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1000 EUR
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1000 EUR
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FIXED ASSETS AND OTHER NON-CURRENT ASSETS
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Intangible assets
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1 319
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2 262
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1 563
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Tangible
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22 175
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23 342
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21 431
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Investments, non-current
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110
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92
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92
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INVENTORIES AND CURRENT ASSETS
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Inventories
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14 297
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15 093
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13 634
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Long-term receivables
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0
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5
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0
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Short-term receivables
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16 844
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24 897
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18 802
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Cash and bank receivables
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5 424
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4 149
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5 945
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TOTAL NON-CURRENT AND CURRENT ASSETS
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60 169
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69 840
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61 467
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LIABILITIES AND SHAREHOLDERS EQUITY
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Osakepääoma
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8 669
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4 334
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8 669
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Other restricted equity
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16 666
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19 057
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14 722
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Non-restricted equity
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-5 413
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3 349
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-1 719
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TOTAL SHAREHOLDERS - EQUITY
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19 922
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26 740
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21 672
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MINORITY INTEREST
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694
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725
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788
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LIABILITIES
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Deferred tax liability
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1 277
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762
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488
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Long-term
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18 912
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21 381
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20 250
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Short-term
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19 364
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20 232
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18 269
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TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
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60 169
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69 840
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61 467
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EVOX RIFA GROUP CASH FLOW STATEMENT
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1.1.- 30.6.03
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1.1.- 30.6.02
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1.1.- 31.12.02
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Net cash from operating
activities
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1 631
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-1 482
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-5 591
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CASH FLOW FROM INVESTING ACTIVITIES
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Acquisition of Group Companies
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-4 933
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-5 329
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Purchase of tangible and
intangible assets
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-709
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-1 512
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-1 683
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Proceeds from sale of tangible
and intangible assets
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719
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297
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Net cash used in(-)/provided by(+)
investing activities
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10
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-6 445
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-6 715
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CASH FLOW FROM FINANCING ACTIVITIES
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|
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Share issue
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|
6 069
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Change in interest bearing loans
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-1 944
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5 221
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5 598
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|
Translation adjustment
|
-218
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446
|
175
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Net cash used in(-)/ provided
by(+)financing activities
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-2 162
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5 667
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11 842
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Increase(+)/decrease(-) in cash and
cash equivalents
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-521
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-2 260
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-464
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Cash and cash equivalents at the
beginning of the period
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6 409
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5 945
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6 409
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Cash and cash equivalents at the
end of the period
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5 424
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4 149
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5 945
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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
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30.6.03
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30.6.02
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31.12.02
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Return on equity, %
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-27,3 %
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-34,5 %
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-36,3 %
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Return on investment, %
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-10,1 %
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-19,5 %
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-19,1 %
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Equity ratio
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34,3 %
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39,3 %
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36,5 %
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Gross investments in fixed assets, TEUR
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709
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6 509
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7 147
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% of net sales
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1,8 %
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21,5 %
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10,2 %
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Earnings per share, EUR
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-0,017
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-0,053
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-0,068
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Equity per share, EUR
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0,115
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0,154
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0,125
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Order backlog, MEUR
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12,8
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16,0
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13,6
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Personnel, average
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1 212
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1 183
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1 288
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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):
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Currency options
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Bought options
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Value at the time of contract
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3 388
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Market value 30.6.
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45
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Sold options
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Value at the time of contract
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6 792
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Market value 30.6.
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-29
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The figures of this interim report are unaudited.
In Espoo on August 5, 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
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