Stock Exchange Release 20 August 2013 at 8.30 p.m.
PRELIMINARY PRO FORMA FINANCIALS ON CONSOLIDATED INCAP-INISSION
The Extraordinary General Meeting of Incap Corporation will on 21 August 2013 decide among others on the provisional transaction between Incap Corporation and Inission AB. For this purpose, Incap has prepared preliminary pro forma calculations on the consolidated Incap-Inission. The figures are unaudited and when combining them, eventual adjustments required by the IFRS standard have not been considered. Specific pro forma figures in accordance with IFRS will be disclosed in the prospect, which Incap will publish to get the new shares traded at the stock exchange approximately in September 2013.
| PRO FORMA INCOME STATEMENT | ||||||
| EUR'000, unaudited |
2012 | FY 2012² | Jan-Jun 2013 | Jan-Jun 2013 | ||
| Inission | Incap | Consolidated | Inission | Incap | Consolidated | |
| External sales | 29 748,22 | 64 141,00 | 93 889,22 | 14 292,30 | 20 537,00 | 34 829,30 |
| Change in inventories of finished goods and WiP |
-33,87 | -643,00 | -676,87 | -762,32 | -357,00 | -1 119,32 |
| Other operating income |
42,40 | 404,00 | 446,40 | 0,00 | 39,00 | 39,00 |
| Raw materials and consumables used |
16 417,46 | 44 315,00 | 60 732,46 | 6 426,55 | 12 729,00 | 19 155,55 |
| Personnel expenses |
7 826,88 | 11 087,00 | 18 913,88 | 4 042,30 | 4 955,00 | 8 997,30 |
| EBITDA | 2 300,02 | 779,00 | 3 079,02 | 1 562,25 | -993,00 | 569,25 |
| Depreciation, amortisation and impairment losses |
184,63 | 1 459,00 | 1 643,63 | 73,83 | 855,00 | 928,83 |
| Other operating expenses | 3 212,39 | 7 721,00 | 10 933,39 | 1 498,88 | 3 528,00 | 5 026,88 |
| EBIT | 2 115,39 | -680,00 | 1 435,39 | 1 488,42 | -1 848,00 | -359,58 |
| Financial income and expenses, net |
37,98 | -752,00 | -714,02 | -20,24 | -1 034,00 | -1 054,24 |
| Income before taxes and XO items |
2 153,37 | -1 432,00 | 721,37 | 1 468,18 | -2 882,00 | -1 413,82 |
| Non-recurring items | ||||||
| Extraordinary items | 175,22 | 175,22 | 14,95 | 14,95 | ||
| Haircuts on loans, interest and payables related to the re-financing of Incap |
2 505,07 | 2 505,07 | ||||
| Transaction commissions |
-350,00 | -350,00 | ||||
| Income before appropriations and taxes |
2 328,58 | 723,07 | 3 051,66 | 1 483,13 | -2 882,00 | -1 398,87 |
| Balance sheet allocations |
-65,57 | -65,57 | 0,00 | |||
| Profit before taxes | 2 263,01 | 723,07 | 2 986,08 | 1 483,13 | -2 882,00 | -1 398,87 |
| Income tax expense³ | 113,03 | -3 497,00 | -3 383,97 | -54,12 | -176,00 | -230,12 |
| Result for the period4 | 2 376,04 | -2 773,93 | -397,89 | 1 429,01 | -3 058,00 | -1 628,99 |
Pro forma income statements are conducted based on the assumption that the transaction took place on 1 January 2012. Hence, the transaction commissions as well as the haircuts in loans, interests and payables are added as non-recurring items in the income statement for 2012.
The pro forma balance sheet is conducted based on the assumption that the transaction took place by 30 June 2013. Hence, the directed share issue, the debt conversions and the reductions in accounts payables are included in the company balance as of January-June 2013.
| Key Financials | FY 2012² | Jan-Jun 2013 | ||||
| Inission | Incap | Consolidated | Inission | Incap | Consolidated | |
| Other operating income, % of sales | 0,1 % | 0,6 % | 0,5 % | 0,0 % | 0,2 % | 0,1 % |
| Materials and supplies, % of sales | 55,2 % | 69,1 % | 64,7 % | 45,0 % | 62,0 % | 55,0 % |
| Total cost of material, % of sales | 55,3 % | 70,1 % | 65,4 % | 50,3 % | 63,7 % | 58,2 % |
| Employee benefits expense, % of sales | 26,3 % | 17,3 % | 20,1 % | 28,3 % | 24,1 % | 25,8 % |
| Other operating expenses, % of sales | 10,8 % | 12,0 % | 11,6 % | 10,5 % | 17,2 % | 14,4 % |
| EBITDA margin, % | 7,7 % | 1,2 % | 3,3 % | 10,9 % | -4,8 % | 1,6 % |
| EBIT margin, % | 7,1 % | -1,1 % | 1,5 % | 10,4 % | -9,0 % | -1,0 % |
| EBAT margin, % | 7,8 % | 1,1 % | 3,3 % | 10,4 % | -14,0 % | -4,0 % |
| EBT margin, % | 7,6 % | 1,1 % | 3,2 % | 10,4 % | -14,0 % | -4,0 % |
| Profit margin, % | 8,0 % | -4,3 % | -0,4 % | 10,0 % | -14,9 % | -4,7 % |
| PRO FORMA BALANCE SHEET¹ | |||||
| EUR'000, unaudited | Inission 30 June 2013 |
Incap 30 June 2013 |
Option to combine operations |
Eliminations | Consolidated 30 June 2013 |
| Goodwill | 0,00 | 905,00 | 4 720,72 | 5 625,72 | |
| Other intangible assets | 2,18 | 64,00 | 66,18 | ||
| Property, plant and equipment | 436,42 | 2 093,00 | 2 529,42 | ||
| Other financial assets | 13,57 | 471,00 | 484,57 | ||
| Shares in subsidiaries | 8 072,92 | -8 072,92 | 0,00 | ||
| Deferred tax assets | 432,28 | 356,00 | 788,28 | ||
| Inventories | 5 709,54 | 6 695,00 | 12 404,54 | ||
| Lending to Inission AB | 0,00 | 0,00 | |||
| Trade and other receivables | 5 155,59 | 9 705,00 | 14 860,59 | ||
| Accrued income, prepaid expenses | 122,24 | 0,00 | 122,24 | ||
| Cash and cash equivalents | 351,78 | 6 592,20 | 6 943,98 | ||
| Total assets | 12 223,602 | 26 881,20 | 8 072,92 | -3 352,19 | 43 825,52 |
| Share capital | 412,84 | 25 008,20 | 8 072,92 | -412,84 | 33 081,12 |
| Restricted reserves | 2 491,32 | 44,00 | -2 491,32 | 44,00 | |
| Unrestricted reserves | -5 090,96 | 5 182,00 | 5 090,96 | 5 182,00 | |
| Exchange differences | 0,00 | -1 111,00 | 0,00 | -1 111,00 | |
| Retained earnings | 4 109,92 | -25 283,93 | -4 109,92 | -25 283,93 | |
| Result for the period | 1 429,08 | -3 058,00 | -1 429,08 | -3 058,00 | |
| Debt conversions | 4 985,62 | 0,00 | 4 985,62 | ||
| Total equity | 3 352,19 | 5 766,89 | 8 072,92 | -3 352,19 | 13 839,81 |
| Provisions | |||||
| Deferred tax liabilities | 438,72 | 0,00 | 438,72 | ||
| IB debt | 3 678,33 | 12 093,57 | 15 771,90 | ||
| Borrowing from Inission AB | 924,12 | 924,12 | |||
| Trade and other payables | 2 227,40 | 9 019,73 | 11 247,13 | ||
| Prepaid income, accrued charges | 1 602,73 | 0,00 | 1 602,73 | ||
| Total liabilities | 8 871,29 | 21 113,31 | 29 984,60 | ||
| Total equity and liabilities | 12 223,49 | 26 880,20 | 8 072,92 | -3 352,19 | 43 824,41 |
| Minority interest | 0,00 | 0,00 | 0,00 | ||
| Key Financials | Inission 30 June 2013 |
Incap 30 June2013 |
Consolidated 30 June 2013 |
| Net working capital | 7 157,25 | 7 380,27 | 14 537,51 |
| Interest-bearing debt | 5 041,17 | 12 093,57 | 17 134,74 |
| Net debt | 4 257,11 | 5 145,37 | 9 402,49 |
| Equity ratio | 27,42 % | 21,45 % | 31,58 % |
| Gearing | 126,99 % | 89,22 % | 67,94 % |
Notes:
1) In the pro forma statements Inission's and Incap's financial statements are consolidated assuming that 100% of Incap is consolidated with Inission's subsidiaries. Hence, parent company Inission AB is excluded
2) Fiscal year 2012 for Inission is based on a MM + Inission calendar year pro forma approach, were MM is assumed to have been owned the whole year. The P&L accounting entries for Inission vary between FY 2012 and Jan-Jun 2013, and the fiscal years may hence not be fully comparable.
3) Inission has reported no income tax expense for Jan-Jun 2013. The tax attributable to the subsidiaries stems from a difference in Munkfors' profit in P&L and BS.
4) Profit before translation differences for Incap
5) An average rate of SEK/EUR of 8,7041 is used for currency conversion in pro forma income statement as of 31.12.2012. The SEK/EUR rate at 1.7.2013 of 8,6958 is used for currency conversion in pro forma income statement and pro forma balance sheet as of 30.6.2012.
6) Incaps financials are calculated according to IFRS and Inission's according to "Årsredovisningslagen och Bokföringsnämndens allmänna råd"
INCAP CORPORATION
Further information:
Sami Mykkänen, President and CEO, tel. +358 40 559 9047 or +372 555 379 05
Kirsti Parvi, CFO, tel. +358 50 517 4569 or +372 555 620 35
Hannele Pöllä, Director, Communications and IR, tel. +358 40 504 8296
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.incap.fi
INCAP IN BRIEF
Incap Corporation is an internationally operating contract manufacturer whose comprehensive services cover the entire life-cycle of electromechanical products from design and manufacture to maintenance services. Incap's customers include leading equipment suppliers in energy efficiency and well-being technologies, for which the company produces competitiveness as a strategic partner. Incap has operations in Finland, Estonia, India and China. The Group's revenue in 2012 amounted to EUR 64.1 million and the company currently employs approximately 600 people. Incap's share is listed on the NASDAQ OMX Helsinki since 1997. Additional information:www.incap.fi.
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