Incap Corporation Stock Exchange Release 3
November 2010 at 8:30 a.m.
INCAP GROUP INTERIM REPORT JANUARY-SEPTEMBER 2010: SAVINGS OF STRUCTURAL CHANGE
BECAME VISIBLE IN THIRD-QUARTER RESULTS
* revenue in January-September stood at EUR 43.0 million (1-9/2009: EUR 52.0
million)
* operating profit (EBIT) in January-September was EUR -3.2 million (EUR -1.3
million)
* earnings per share were EUR -0.33 (EUR -0.23).
* profitability was burdened by the decline in revenue and the structural
change - operating profit (EBIT), however, improved steadily in each three
quarters
* centralisation of European electronics manufacturing in one unit has
progressed according to schedule, and savings due to the structural change
began to take effect in the third quarter
* the directed share issues in April and September were subscribed in full,
and approx. EUR 4.1 million was recognised in the reserve for invested non-
restricted equity
* Incap changes the guidance and estimates that the Group's full-year revenue
for 2010 will be approximately EUR 59-62 million and the operating profit
(EBIT) for 2010 approximately EUR -2.7 to -3.5 million.
This unaudited interim report has been prepared in accordance with international
financial reporting standards (IFRS). Unless otherwise stated, the comparison
figures refer to the same period in the previous year.
Sami Mykkänen, the President and CEO of Incap Group: "After a slow first
quarter, the demand for Incap's services picked up markedly in the second
quarter, yet decreased again in the third quarter. The decrease in revenue was
attributable also to the delay of deliveries mainly due to the shortage of
materials. The order book and outlook have improved, particularly in the energy
efficiency industry, and we believe this will already have an impact on our
revenue in the fourth quarter.
The merger of the operations of our two electronics factories was completed in
the autumn. In order to ensure the success of product transfers from one factory
to another, we have had to maintain partly overlapping resources. This has made
it impossible to fully adjust operations to match the decrease in revenue.
However, the cost savings targeted with the structural change began to have an
impact on the result from the third quarter onward.
The structural change in production will be completed by year-end, at which time
we expect to transfer the sheet-metal business of our Helsinki plant to
Lankapaja Corporation in accordance with the previously signed letter of intent.
Once the transaction is carried out, we will be able to focus all of our
resources on the core areas in our strategy and specialise in the final assembly
of end products at our Helsinki plant, where we can offer the greatest added
value to our customers.
The directed share issues carried out in the spring and autumn succeeded well
and strengthened Incap's capital and financing structure in line with the
target. Finnish Industry Investment Ltd. is most welcome as one of the major
shareholders and gives certain stability to the future development of Incap."
Revenue and earnings in July-September 2010
The third-quarter revenue amounted to EUR 13.7 million, representing a fall of
some 17% from the corresponding period last year. The heaviest decrease occurred
in the Well-being sector products, and the demand for slot machines in
particular declined significantly compared with the corresponding period last
year. Problems in the availability of materials also delayed deliveries until
the end of the year.
The third-quarter operating profit was EUR -0.5 million (7-9/2009: EUR -0.3
million). This is clearly better than in the previous quarters in 2010, yet
somewhat weaker than in the corresponding period last year. The operating result
includes a non-recurring provision of approximately EUR 0.7 million for the
closure of the Vuokatti plant.
Net profit for the third quarter amounted to EUR -1.1 million (EUR -0.8
million). Earnings per share were EUR -0.08 (EUR -0.07).
Quarterly comparison 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
(EUR thousands) 2010 2010 2010 2009 2009 2009 2009
Revenue 13,741 15,836 13,436 17,746 16,613 16,928 18,479
Operating profit/loss (EBIT) -471 -1,097 -1,670 -3,666 -314 -472 -518
Net profit/loss -1067 -1,490 -1,899 -3,926 -810 -1,035 -949
Earnings per share, EUR -0.08 -0.12 -0.16 -0.32 -0.07 -0.08 -0.08
Revenue and earnings in January-September 2010
Revenue in January-September stood at EUR 43.0 million, which was 17% lower than
in the comparable period in 2009 (1-9/2009: EUR 52.0 million). The trend in
revenue was affected especially in the beginning of the year by the decline in
demand due to the general economic uncertainty. The longer delivery times for
raw materials caused delays in deliveries to customers, which decreased the
revenue in the third quarter in particular.
The demand for energy efficiency products developed favourably during the review
period, and the delivery volume of rotor components used in large motors
increased in particular. The demand for design services remained at a good
level, and resources in the Bangalore design unit were increased as planned.
Profitability dropped from last year's comparable period. Operating profit
amounted to EUR -3.2 million (EUR -1.3 million), representing -7.5% of revenue
(-2.5%). Profitability was mainly affected by the decline in revenue. The cost
structure could not be adjusted to fully match the lower revenue, since the
merger of two electronics factories, related to the Group's structural change,
required the maintenance of partly overlapping resources. However, the cost
savings targeted with the structural change began to have an impact on the
result from August onwards.
The availability of certain materials and components weakened clearly, raising
market prices and increasing logistics costs.
Net profit for the period totalled EUR -4.5 million (EUR -2.8 million). Net
finance costs were decreased by approximately EUR 0.3 million as a result of the
Indian rupee strengthening. Depreciation stood at EUR 2.2 million (EUR 2.1
million).
Return on investment was -15% (-5%) and return on equity was -95% (-32%).
Earnings per share were EUR -0.33 (EUR -0.23), while equity per share stood at
EUR 0.33 (EUR 0.86).
The Group's balance sheet total was EUR 41.9 million. The Group's equity at the
close of the period was EUR 6.1 million (EUR 10.4 million). Liabilities totalled
EUR 35.8 million (EUR 32.0 million), of which EUR 21.9 million (EUR 19.3
million) comprised interest-bearing liabilities. Of liabilities, current
liabilities took up EUR 25.6 million (20.6 million). The parent company's equity
totalled EUR 6.1 million, representing 29.9% of the share capital.
The Group's equity ratio was 14.6% (24.6%). Interest-bearing net liabilities
totalled EUR 20.7 million (EUR 18.1 million) and the gearing ratio was 338%
(174%).
Business development in January-September 2010
In May, Incap and ABB renewed the supply contract on the rotor components of
electrical motors and generators, which signifies the extension of the long-term
cooperation between the companies.
To boost new customer acquisition in the company's strategic focus areas, Incap
signed an agreement in June on participating in a venture capital fund managed
by Cleantech Invest Oy. The fund invests in cleantech growth companies, which
are Incap's potential customers.
In September, Incap Corporation and Lankapaja Corporation signed a letter of
intent regarding the sale of the sheet-metal business of Incap's Helsinki plant.
The planned sale of business is consistent with Incap's strategy and, if
concluded, will enable the specialisation of the Helsinki plant into a final
assembly plant. The targeted date for the transfer of the sheet-metal plant's
personnel and production equipment to Lankapaja is 1 January 2011.
A new eccentric press production line was procured for the Vaasa plant during
the review period. The production line primarily serves Incap's customers
operating in the fields of wind power, energy production and power distribution.
It can be used to fabricate large generator and electric motor components and
stressed-skin structures for various devices used in the energy industry.
Financing and cash flow
The Group's quick ratio was 0.5 (0.6) and the current ratio 1.0 (1.3). Cash flow
from operating activities was EUR -3.9 million (EUR 1.9 million) and the change
in cash and cash equivalents showed an increase of EUR 0.7 million (an increase
of EUR 0.5 million).
Capital expenditures
Cash flow from investing activities was EUR 0.06 million positive (EUR -0.8
million) and included the sale of production equipment based on a customer
contract. A new eccentric press production line was procured for the Vaasa plant
during the review period. The production line will be brought online during the
autumn.
Personnel and organisation
At the end of the review period, Incap Group employed 798 people, of whom 86
were on term of notice with no obligation to work. The average number of
personnel was 784 (743). The number of employees grew in India and Estonia. At
the end of the review period, 40% of the personnel worked in India, 36% in
Finland and 24% in Estonia.
Operations were adjusted throughout the company's operations during the review
period. Cooperation negotiations concerning the entire personnel in Finland were
launched in August and the negotiations resulted in temporary layoffs varying
from 11 days to three months, scheduled to take place by the end of the year.
Owing to the merger of the Finnish and Estonian electronics production, the head
count at the Vuokatti plant has gradually decreased as the periods of notice
have expired. At the end of the review period, the unit employed 103 people on
term of notice, of whom 17 were subject to the obligation to work.
Pekka Laitila, who earlier managed Incap's electronics sourcing, was appointed
in July as the new Director of Sourcing and Materials for the Group. At the same
time, the sourcing organisation was reformed so that the responsibilities of the
sourcing director also cover the purchasing of the Finnish and Estonian units,
in addition to Group-level sourcing. The objective is to improve the efficiency
of the inventory management and to develop purchase operations so that all
plants are controlled through a single operating model.
Options
The criteria set for the option programme targeting the President and CEO, and
the other management team, in 2009 were not met in terms of the 2009 operating
profit and return on working capital. In March 2010, the Board of Directors
changed the option programme's distribution principles, emphasising the
fulfilment of each personal objective, and distributed 25,000 B-options to the
President and CEO, and a total of 100,000 C-options to the management team
members.
The subscription period of B options in the 2004 option programme ended on 30
April 2010, and no option rights were used for subscriptions.
Annual General Meeting
Incap Corporation's Annual General Meeting was held in Helsinki on 13 April
2010. The Annual General Meeting confirmed the consolidated financial statements
over the financial period ended on 31 December 2009 and decided, in accordance
with the Board of Director's proposal, that no dividend would be paid and the
loss for the financial period (EUR 3,825,364.79) be left in equity.
Kari Häyrinen, Kalevi Laurila, Susanna Miekk-oja and Lassi Noponen were re-
elected as Board members, and Raimo Helasmäki was elected as a new member. The
Board elected from among its members Kalevi Laurila as Chairman and Susanna
Miekk-oja as Deputy Chairman. Ernst & Young Oy, Authorised Public Accountants,
was re-elected as the company's auditor.
The Annual General Meeting decided to amend the Articles of Association so that
the notice of meeting is to be sent no later than 21 days before the AGM.
The Annual General Meeting authorised the Board to decide upon an increase in
share capital by one or more new issues within one year from the Annual General
Meeting so that the aggregate number of shares subscribed on the basis of the
authorisation will be no more than 1,500,000 shares. This Board authorisation is
still valid.
Directed share issue in April 2010
The Annual General Meeting held on 13 April 2010 decided, according to the Board
of Directors' proposal, upon increasing the share capital through a directed
share issue where a maximum of 2,000,000 new shares were, deviating from the
pre-emptive right of the current shareholders, offered to the company's Board of
Directors, President and CEO, management team members, and those of the current
shareholders who, at the beginning of the placement on 13 April 2010, held at
least 100,000 shares in the company. Before the share issue, new shares
accounted for 16.4% of all of the company's shares, and for 14.1% after it.
The subscription price of the shares was EUR 0.64, which was the volume-weighted
average price of the company's share on the NASDAQ OMX Helsinki Ltd in March
2010.
The Board of Directors approved the subscriptions on 3 May 2010. Seven of the
biggest shareholders subscribed for a total of 1,812,200 shares, which
represented 90.6% of all the new shares. The Board of Directors, President and
CEO, and management team members subscribed for a total of 9.4% of the new
shares.
In order to have the new shares admitted for public trading on the NASDAQ OMX
Helsinki, Incap published a prospectus on 29 June 2010, and trading in the new
shares started on 30 June 2010.
Following the registration of the new shares, Incap Corporation had a total of
14,180,880 shares.
Directed share issue in September 2010
Incap Corporation's Extraordinary General Meeting decided on 9 September 2010 to
carry out a directed share issue where a minimum of 4,000,000 and a maximum of
4,500,000 new shares were, deviating from the pre-emptive right of shareholders,
offered to professional investors, the Board of Directors, President and CEO,
the management team members, and those of the current shareholders who held at
least 100,000 shares on 14 September 2010.
The subscription price was EUR 0.64, which was the volume-weighted average price
of the company's share on the NASDAQ OMX Helsinki in August 2010. The
subscription period was from 20 to 28 September 2010, and the subscription price
was to be paid by 28 September 2010.
Subscriptions were made for the maximum number of shares, a total of 4,500,000
shares. The new shares issues and subscribed for represent approximately 24.1%
of all shares and voting rights after the share issue.
Incap drew up a prospectus in order to have the new shares admitted for public
trading on the Helsinki Exchanges. The prospectus will be published estimated in
the middle of November.
Following the registration of the new shares, Incap Corporation has a total of
18,680,880 shares.
Announcement in accordance with Chapter 2, section 10, of the Securities Market
Act on a change in holdings
After the registration of the shares subscribed for in the directed share issue
in April, Göran Sundholm's holdings in Incap exceeded the notification limit of
5%. Göran Sundholm subscribed for a total of 500,000 new shares, after which he
held a total of 1,123,263 Incap shares on 30 June 2010, which represents 7.9% of
the company's shares and votes.
In Sampo Group, the holdings of Mandatum Life Insurance Company Ltd. of Incap
Corporation's shares was 5% on 20 September 2010, after which Mandatum Life
Insurance held a total of 1,000,000 shares or 7.1% of the share capital and
votes.
The holdings of Oy Etra Invest Ab of Incap Corporation's shares decreased below
25%. After 20 September 2010, Oy Etra Invest Ab held a total of 3,139.801
shares, or 22.1% of the share capital and votes.
After the subscriptions of the directed share issue in September and the
registration of the new shares of Incap, the holdings of Finnish Industry
Investment Ltd. exceeded 10%. Following the registration of the new shares,
Finnish Industry Investment Ltd. holds 2,185,509 shares or 11.7% of the share
capital and votes.
After the subscriptions of the directed share issue in September and the
registration of the new shares of Incap, the holdings of JMC Finance Oy
decreased below 15%. Following the registration of the new shares, the company
holds 2,188,000 shares or 11.7% of the share capital and votes.
According to the announcement made by OP Pohjola Group Central Cooperative, the
combined holdings of OP Pohjola Group Central Cooperative and entities
controlled by it as well as its subsidiaries and investment funds administered
by such subsidiaries, based on Incap's convertible promissory notes, will
decrease below 5% after the registration of the new shares, if the subscription
right based on the convertible promissory notes is realised. In this case the
combined holdings will total 760,000 shares or 4.1% of Incap Corporation's share
capital and votes.
Shares and shareholders
Incap Corporation has one series of shares, and the number of shares at the end
of the period was 14,180,880. After the registration of the new shares
subscribed for in September, Incap Corporation will have 16,680,880 shares.
During the period, the share price varied between EUR 0.57 and EUR 0.75 (EUR
0.43 and 0.99). The closing price for the period was EUR 0.65 (EUR 0.69). During
the review period, the trading volume was 35.6% of outstanding shares (19.7%).
At the end of the period, the company had 1,129 shareholders (1,145). Foreign or
nominee-registered owners held 0.8% (2.8%) of all shares. The company's market
capitalisation on 30 September 2010 was EUR 9.2 million (EUR 8.4 million). The
company does not own any of its own shares.
Short-term risks and factors of uncertainty concerning operations
The risks and uncertainty factors related to Incap's operations are described in
more detail in the prospectus published on 29 June 2010. The prospectus is
available in Finnish on the company's website atwww.incap.fi
Fluctuations in the global economy and customer sectors affect Incap's demand
and financial position. The recession has also had an impact on Incap's revenue
and profitability. The time and speed of recovery of the global economy will
affect the company's future revenue and, as a result, its profitability. To
date, the recession has not had a negative effect on the solvency of Incap's
customers.
Quality, manufacturing and distribution difficulties of material suppliers, as
well as changes in the market prices of materials influence Incap's delivery
capacity and production costs. Most material prices are linked to customer
agreements, which reduce material price risks. Changes in material prices will
be transferred over to customers' prices, although with a delay. The
availability of materials is considered to be the most significant material-
related risk in the near future. This may also lead to a rise in the level of
costs.
The general financial market situation affects the financing of Incap. The
acquisition of the Indian business unit in 2007 increased the Group's external
financing and financial risks. The financing basis of Indian operations was
boosted in 2009 by an equity investment that Finnfund made in Incap's Indian
subsidiary.
On 27 September 2010, Incap Corporation and a financier signed a new financing
agreement which will remain valid until 31 May 2012. The new financing agreement
covers the loans related to the financing of the Indian company (totalling
approximately EUR 5.6 million) and the parent company's credit line (EUR 1
million) and a factoring credit line, of which EUR 5.1 million was in use on 30
September 2010.
The covenants related to the new agreement are as follows:
Equity ratio net IBD/EBITDA Net capital expenditure
31 December 2010 7.4% 20.6 EUR 1 million/12 months
30 June 2011 11.6% 4.1 EUR 1 million/12 months
31 December 2011 onwards 10.9% 5.6 EUR 1 million/12 months
When calculating the covenants, the factoring credit line in use is not
included. The equity ratio on 30 September 2010 was 14.6% and net IBD/EBITDA was
-3.9. The covenants will be next reviewed on 31 December 2010 and then every six
months. According to the current forecast, it is likely that the net IBD/EBITDA
covenant will not be met on 31 December 2010 but will require negotiations with
the financier.
Incap's financial position will continue to be influenced by the trends in the
general financial market and the company's future earnings development. To
strengthen its financial position, the company carried out private placements in
spring and autumn 2010, from which a total of EUR 4.1 million were recognised in
the reserve for invested non-restricted equity. The goal is to also ensure the
company's liquidity through efficient administration of working capital and
negotiations concerning different forms of financing.
Outlook for the rest of 2010
Incap's estimates on future business development are based on its customers'
forecasts and the company's own assessments.
By the end of 2010, Incap has implemented most of the structural change, which
has included the focusing on the selected customer segments, the reduction of
manufacturing locations, the shift of operational focus to Asia and the
enhancement of design services. The cost savings targeted with the merger of the
two electronics plants began to show in the result from August 2010 onwards, and
their impact will become more marked towards the end of the year.
Incap expects the Group's fourth-quarter revenue to be higher than in the
previous quarters of 2010. A turn is also expected in the profit development,
and the fourth-quarter operating profit is expected to be positive or at least
at the same level as in the third quarter. Incap estimates that the company's
full-year revenue for 2010 will be approximately EUR 59-62 million and the
operating profit (EBIT) for 2010 approximately EUR -2.7 to -3.5 million.
In its earlier guidance given in the January-June interim report on 4 August
2010, Incap estimated that the company's revenue in 2010 will be smaller or at
the same level as 2009, when it was EUR 70 million. At that time, profitability
was expected to improve in the third quarter, and operating profit (EBIT) was
expected to be positive in the latter half of 2010. The Group's full-year
operating profit was expected to be in the red, yet to be clearly better than in
2009 when it was EUR -5.0 million.
INCAP CORPORATION
Board of Directors
For additional information, please contact:
Sami Mykkänen, President and CEO, tel. +358 40 559 9047
Eeva Vaajoensuu, Chief Financial Officer, tel. +358 40 763 6570
Hannele Pöllä, Director of Communications and Human Resources, tel.
+358 40 504 8296
DISTRIBUTION
NASDAQ OMX Helsinki Oy
Principal media
'The company's website:www.incap.fi
PRESS CONFERENCE
Incap will arrange a conference for the press and financial analysts on 3
November 2010 at 10:00 a.m. at the World Trade Center, Helsinki, in Meeting Room
4 on the 2nd floor at Aleksanterinkatu 17, FI-00100 Helsinki.
ANNEXES
1 Consolidated Income Statement
2 Consolidated Balance Sheet
3 Consolidated Cash Flow Statement
4 Consolidated Statement of Changes in Equity
5 Group Key Figures and Contingent Liabilities
6 Quarterly Key Figures
INCAP IN BRIEF
Incap Corporation is an internationally operating contract manufacturer whose
comprehensive services cover the entire lifecycle of electromechanical products
from design and manufacture to maintenance services. Incap's customers are
leading equipment suppliers in energy-efficiency and well-being technology, for
which the company produces competitiveness as a strategic partner. Incap has
operations in Finland, Estonia and India. The Group's revenue in 2009 amounted
to around EUR 70 million, and the company currently employs approximately 800
people. Incap's shares are listed on the NASDAQ OMX Helsinki Oy. For additional
information, please contact: www.incap.fi
Annex 1
CONSOLIDATED INCOME STATEMENT
(EUR thousands, unaudited) 1-9/2010 1-9/2009 Change % 1-12/2009
REVENUE 43,013 52,021 -17 69,767
Work performed by the enterprise and
capitalised
Change in inventories of finished goods and
work in progress 472 -301 -257 -1,499
Other operating income 296 281 5 342
Raw materials and consumables used 29,887 34,050 -12 45,654
Personnel expenses 9,857 10,725 -8 16,132
Depreciation and amortisation 2,177 2,146 1 2,869
Other operating expenses 5,097 6,383 -20 8,924
OPERATING PROFIT/LOSS -3,238 -1,304 148 -,4,970
Financing income and expenses -1,219 -1,488 -18 -1,780
PROFIT/LOSS BEFORE TAX -4,456 -2,792 60 -6,750
Income tax expense 0 -3 -100 29
PROFIT/LOSS FOR THE PERIOD -4,456 -2,795 59 -6,721
Earnings per share -0.33 -0.23 43 -0.55
Options have no dilutive effect
in accounting periods 2009 and 2010
OTHER COMPREHENSIVE INCOME 1-9/2010 1-9/2009 Change % 1-12/2009
PROFIT/LOSS FOR THE PERIOD -4,456 -2,795 59 -6,721
OTHER COMPREHENSIVE INCOME:
Translation differences from foreign units 8 20 -59 19
Other comprehensive income, net 8 20 -59 19
TOTAL COMPREHENSIVE INCOME -4,448 -2,775 60 -6,702
Attributable to:
Shareholders of the parent company -4,448 -2,775 60 -6,702
Minority interest 0
Annex 2
CONSOLIDATED BALANCE SHEET
(EUR thousands, unaudited) 30 Sept. 2010 30 Sept. 2009 Change % 31 Dec. 2009
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 8,403 10,225 -18 10,247
Goodwill 1,029 954 8 977
Other intangible assets 785 1,069 -27 1,008
Other financial assets 314 14 2,130 14
Deferred tax assets 4,199 4,136 2 4,156
TOTAL NON-CURRENT ASSETS 14,731 16,398 -10 16,402
CURRENT ASSETS
Inventories 13,273 14,675 -10 11,381
Trade and other receivables 12,645 10,262 23 11,261
Cash and cash equivalents 1,227 1,136 8 661
TOTAL CURRENT ASSETS 27,145 26,074 4 23,303
TOTAL ASSETS 41,876 42,472 -1 39,706
EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT
COMPANY
Share capital 20,487 20,487 0 20,487
Share premium account 44 44 0 44
Reserve for invested non-
restricted equity 4,131 0
Exchange differences -451 -458 -1 -459
Retained earnings -18,093 -9,644 88 -13,629
TOTAL EQUITY 6,119 10,430 -41 6,443
NON-CURRENT LIABILITIES
Deferred tax liabilities 70 99 -29 70
Interest-bearing loans and
borrowings 10,123 11,363 -11 10,999
NON-CURRENT LIABILITIES 10,193 11,463 -11 11,069
CURRENT LIABILITIES
Trade and other payables 13,772 12,678 8 11,925
Current interest-bearing loans
and borrowings 11,792 7,901 49 10,269
CURRENT LIABILITIES 25,565 20,579 24 22,194
TOTAL EQUITY AND LIABILITIES 41,876 42,472 -1 39,706
Annex 3
CONSOLIDATED CASH FLOW STATEMENT 1-9/2010 1-9/2009 1-12/2009
(EUR thousands, unaudited)
Cash flow from operating activities
Net income -3,238 -1,304 -4,970
Adjustments to operating profit 532 2,162 4,342
Change in working capital 93 2,688 2,929
Interest paid -1,279 -1,642 -1,812
Interest received 12 32 40
Cash flow from operating activities -3,880 1,936 529
Cash flow from investing activities
Capital expenditure on tangible and
intangible assets -275 -961 -1,064
Proceeds from sale of tangible
and intangible assets 501 177 17
Other investments -159 0 0
Loans granted -7 -8 -9
Shares of subsidiaries sold 0 0
Repayments of loan receivables 0 2 2
Cash flow from investing activities 60 -790 -1,054
Cash flow from financing activities
Private placement 4,131
Drawdown of loans 1,811 2,135 5,683
Repayments of borrowings -547 -1,896 -3,868
Repayments of obligations under finance leases -871 -886 -1,255
Cash flow from financing activities 4,524 -647 560
Change in cash and cash equivalents 704 499 35
Cash and cash equivalents at beginning of period 661 641 641
Effect of changes in exchange rates -117 -7 -17
Changes in fair value (cash and cash equivalents) -21 3 2
Cash and cash equivalents at end of period 1,227 1,136 661
Annex 4
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
(EUR thousands, unaudited)
Reserve for
invested
Share non-
Share premium restricted Exchange Retained
capital account equity differences earnings Total
Equity on 1 0
Jan. 2009 20,487 44 -478 -6,864 13,189
Change in
exchange
differences 20 20
Options and
share-based
compensation 15 15
Net income and
losses
recognised 20 15 35
directly in
equity
Net profit/loss -2,795 -2,795
Total income
and losses 20 -2,780 -2,760
Equity on 30 0
Sept. 2009 20,487 44 -458 -9,644 10,430
Equity on 1 0
January 2010 20,487 44 -459 -13,629 6,443
Share premium 4,160 4,160
Transaction
costs for -29
equity -29
Change in
exchange
differences 8 8
Options and
share-based
compensation -7 -7
Other changes
Net income and
losses
recognised
directly in 4,131
equity 8 -7 4,132
Profit or loss
for the period -4,456 -4,456
Total income
and losses 8 -4,464 -325
Equity on 30 4,131
Sept. 2010 20,487 44 -451 -18,093 6,119
Annex 5
GROUP KEY FIGURES AND CONTINGENT
LIABILITIES 30 Sept. 2010 30 Sept. 2009 31 Dec. 2009
Revenue, EUR million 43.0 52.0 69.8
Operating profit, EUR million -3.2 -1.3 -5.0
% of revenue -7.5 -2.5 -7.1
Profit before taxes, EUR million -4.5 -2.8 -6.7
% of revenue -10.4 -5.4 -9.7
Return on investment (ROI), % -14.7 -5.3 -15.9
Return on equity (ROE), % -94.6 -31.6 -68.5
Equity ratio, % 14.6 24.6 16.2
Gearing, % 338.1 173.8 319.8
Net debt, EUR millions 23.1 20.6 21.3
Net interest-bearing debt, EUR millions 20.7 18.1 20.6
Average number of shares during the
report
period, adjusted for share issues 13,334,726 12,180,880 12,180,880
Earnings per share (EPS), euro -0.33 -0.23 -0.55
Equity per share, euro 0.33 0.86 0.53
Investments, EUR million 0.3 1 1.1
% of revenue 0.6 1.9 1.5
Average number of employees 784 743 751
CONTINGENT LIABILITIES, EUR millions
FOR OWN LIABILITIES
Mortgages 12.0 12.0 12.0
Other liabilities 2.6 6.3 4.6
Nominal value of currency options EUR 460.6
thousands 708.5 0
Fair values of currency options, EUR -12.4
thousands -40.5 0
Annex 6
7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
QUARTERLY KEY FIGURES 2010 2010 2010 2009 2009 2009 2009
Revenue,
EUR million 13.7 15.8 13.4 17.7 16.6 16.9 18.5
Operating profit,
EUR million -0.5 -1.1 -1.7 -3.7 -0.3 -0.5 -0.5
% of revenue -3.4 -6.9 -12.4 -20.7 -1.9 -2.8 -2.8
Profit before taxes,
EUR million -1.1 -1.5 -1.9 -4 -0.8 -1.0 -0.9
% of revenue -7.8 -9.4 -14.1 -22.3 -4.9 -6.1 -5.1
Return on
investment
(ROI), % -6.8 -111.3 -21.5 -47.3 -4 -2.1 -4.9
Return on equity
(ROE), % -68 -14.6 -138.3 -160 -27.5 -33.9 -29.8
Equity ratio, % 14.6 10.1 11.1 16.2 24.6 26.4 27.4
Gearing, % 338.1 523.1 477.3 319.8 173.8 164.9 151.1
Net debt,
EUR millions 23.1 24.7 24.4 21.3 20.6 19.7 19.6
Net interest-
bearing debt,
EUR millions 20.7 22.3 21.7 20.6 18.1 18.6 18.6
Average number
of share issue-
adjusted shares
during the 13,334, 12,854, 12,180, 12,180, 12,180, 12,180, 12,180,
financial period 726 913 880 880 880 880 880
Earnings per
share (EPS), euro -0.08 -0.12 -0.16 -0.32 -0.07 -0.08 -0.08
Equity per share,
euro 0.3 0.3 0.37 0.53 0.86 0.92 1.01
Investments,
EUR million 0.1 0.1 0.1 0.1 0.4 0.5 0.1
% of revenue 1.1 0.4 0.4 0.6 2.2 2.9 0.6
Average number
of employees 787 791 734 776 770 732 728
[HUG#1458344]
Incaps Interim report January-September 2010:
http://hugin.info/120192/R/1458344/397849pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Incap Oyj via Thomson Reuters ONE
Incap Oy
Electronics manufacturing services
INCAP GROUP INTERIM REPORT JANUARY-SEPTEMBER 2010: SAVINGS OF STRUCTURAL CHANGE BECAME VISIBLE IN THIRD-QUARTER RESULTS
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