Cicor Interim Report Interim Report 2010

Transcription

1 Cicor Interim Report 2010 Interim Report 2010

2 Key Figures in CHF 1000 unless otherwise specified Net Sales 88,424 80,165 Restructuring costs 1,400 1,240 Operating profit before depreciation and amortisation (EBITDA) 4,870 1,165 Change compared to previous year (%) as % of sales Operating profit / (loss) (EBIT) 925 3,510 as % of sales Net profit / (loss) 1,547 4,584 Change compared to previous year (%) as % of sales Basic and diluted earnings per share (CHF) ,11 Change compared to previous year (%) Non-current assets 121, ,067 Current assets 91,349 85,599 Total assets 212, ,666 Equity 123, ,078 Equity ratio (%) 1) Financial liabilities 38,609 33,662 Cash and cash equivalents 18,256 20,414 Net debt 20,353 13,248 Number of employees (end of period) 1,291 1,201 Number of shares issued (end of period) 2,822,762 2,822,762 Average number of shares outstanding 2,802,374 2,264,237 Equity attributable to Cicor shareholders per share (CHF) ) Total equity as % of total assets Cover picture The first half of 2010 has seen a welcome surge in orders from the watch industry. Picture: printed circuit board, watch industry

3 Cicor Interim Report 2010 Contents 4 Chairman s and CEO s Report 8 Consolidated Financial Statements 18 Addresses and Contact 19 Publication Details Calendar Annual Report March 2011 Annual General Meeting May 2011 Interim Report August

4 Cicor Interim Report 2010 Operating Results Back in the Profit Zone The results achieved in the first half of 2010 reflect the encouraging upward trend for the Cicor Group. Net sales and operating results both showed a marked improvement. The stronger business performance is due primarily to the systematic implementation of measures to align the cost base with changing demand as well as to the improving economic environment in key markets. During the reporting period, the Cicor Group continued to drive forward its planned development and expansion of the sales structures in Asia and America an essential platform for future growth and to establish the global footprint that is key to the continued positive performance of the business. By optimizing management structures, streamlining operational processes and introducing a uniform brand platform for the whole Group, the Board of Directors and Group Management have created the right conditions to consolidate the upward trend during the second semester and continue to lead the company towards growth. In the first six months of 2010, most of the Cicor Group s key markets developed well. Incoming orders amounted to CHF 92.9 million in the first half of 2010, up 20% on the previous year (first half of 2009: CHF 77.4 million). Net sales rose by 10.3% to CHF 88.4 million (first half of 2009: CHF 80.2 million). Operating profit before depreciation and amortization (EBITDA) improved to CHF 4.9 million, significantly higher than the previous year s figure of CHF 1.2 million. The operating result (EBIT) passed the break-even point, coming in at CHF 0.9 million (first half of 2009: CHF -3.5 million). Both EBITDA and EBIT contained restructuring costs of CHF 1.4 million, relating to the relocation of production and the reorientation of Systel SA. The strength of the Swiss franc against the euro and the other main currencies affected the financial result. The Group was able to prevent any other adverse effects of the exchange rate fluctuations thanks to the strong presence of its production sites in the euro area and Asia, as well as systematic balancing of commodity flows across the currency areas. On the level of net profit, the result was a loss of CHF -1.5 million (first half of 2009: CHF -4.6 million). This clear improvement in the business performance compared with the corresponding period of last year was a validation of the measures adopted in 2009 to return the Group to profit. The Group remains on a solid financial footing, with an equity ratio of 58.1% at 30 June In the reporting period, Cicor continued to develop its highly specialized product and service offering in its target niche markets, while increasing its attractiveness for existing and new customers as a globally active technology and production partner. The Group s worldwide presence, with its own sales, consulting and production capacities, aimed at ensuring competitive cost structures and the highest quality of service, is a key success factor. The Group therefore continued to build on its existing strengths and market positions in Europe and Asia and also began to push ahead with the establishment of its sales activities in America. The systematic integration of the ESG Group, with its production plants in Singapore, Indonesia and Vietnam, the acquisition of which was completed at the beginning of 2010, established an important bridgehead in the promising growth markets of Asia. In America, the Group is working with new distribution partners to strengthen its sales organization. 4

5 Cicor Interim Report 2010 Microelectronics Division: Challenging market environment Printed Circuit Board Division: Clear improvement in the market environment In the reporting period, net sales generated by the Printed Circuit Board Division grew compared with the previous year by 27.3%, reaching CHF 17.8 million (first half of 2009: CHF 14.0 million). The operating result (EBIT) was CHF -0.2 million (first half of 2009: CHF -3.8 million). This clear improvement was due to systematic implementation of the measures introduced in 2009 to adjust the cost base to lower demand, as well as to the recovery in most markets. The Division benefitted from the encouraging uptrend in important industries such as medical technology, automotive, semiconductors, telecommunications, aerospace and in particular the watch sector. A more intensive marketing and sales drive led to a recovery in the order books and the initiation of new projects, particularly in the medical technology and aerospace segments. These advances confirmed the pleasing upturn in the Division s business. Measures to increase organizational efficiency and restructure inventory management, first introduced in 2009, began to take effect. Their further optimization is one of the main areas of potential improvement for the second half of the year. The Microelectronics Division continued to face a challenging market environment in the first half of The Division generated net sales of CHF 15.2 million (first half of 2009: CHF 16.9 million) and an operating result (EBIT) of CHF 0.9 million (first half of 2009: CHF 1.8 million). In the area of classic thin-film technology in particular, planned orders from the defence sector were postponed to a later date. This is regarded as a latecycle sector and therefore, customers continued to be affected by the consequences of the global financial crisis and the budgetary restrictions imposed on the public sector in Europe. As a result, production capacity had to be adjusted in the affected business units in line with the temporary fall in demand. On the other hand, sales in the optoelectronics (component assembly for laser and LED applications) and avionics (power supply modules) sectors showed a very welcome upward trend. The Division also increased its sales of industrial electronic components (special electronics for nuclear power plants), leading to recruitment of personnel, particularly in sales and engineering. A number of further projects were initiated, offering the latest thin-film flex technology as an alternative to classic thin-film technology. However, the lead times for development and ramp-up mean that these projects will only have an impact on sales from the end of 2010 and in the subsequent years. 5

6 Cicor Interim Report 2010 Electronic Solutions Division: Increase in net sales The Electronic Solutions Division (formerly EMS Division) generated net sales of CHF 44.8 million in the reporting period (first half of 2009: CHF 41.5 million), a rise of 7.9% compared with the corresponding period of The operating result (EBIT) was CHF 0.4 million (first half of 2009: CHF -0.8 million). This figure includes restructuring costs and special provisions of CHF 1.4 million relating to the transfer of production and reorientation of Systel AG at the Quartino site (Switzerland). Concentrating production in Europe at the Bronschhofen (Switzerland) and Arad (Romania) sites made it possible to optimize processes and the utilization of the available capacity. This move paves the way for a decisive improvement in the profitability of the Division in the future. On the organizational front, the Division reviewed and subsequently optimized its whole spectrum of processes, from acquisition to after-sales service, and strove to harness further synergies. At the same time, the Division pushed ahead with the systematic integration of the production site in Vietnam into Group-wide processes, including the IT systems. The goal is to further increase customer value resulting from the Group s consistent worldwide image. The Division operates on the basis of extremely flexible costs, simplified processes and an extended raft of services. These measures will enable Cicor to serve its customers requirements with even greater precision. Asia Division: Dynamic growth In creating the Asia Division following the completed acquisition of the ESG Group, Cicor Technologies Ltd. was responding to the strategic significance of the dynamic Asian growth markets. At the same time, Cicor is underlining its intention to greatly expand its activities in the Far East. The gratifying development of business in the first half of 2010 was an affirmation of this decision. The Asia Division generated net sales of CHF 11.0 million in the first half of 2010, a rise of 38.2% compared with the previous year s figure of CHF 8.0 million. The operating result (EBIT) was CHF 0.9 million (first half of 2009: CHF 0.1 million), showing a rising tendency following the resolution of the global financial crisis and internal adjustments to take account of the changed market requirements. The Group company in Indonesia gained ISO medical certification inside just three months. This success strengthened the competitive position of the Division in the electronic manufacturing services market. The focus of Management in the second half of 2010 will be on systematic integration of the Cicor Group s activities, with the aim of offering customers even more added value. To this end, the Division is optimizing its management of resources and material procurement, while adapting its organization and processes. Another top priority is to maintain the high level of customer confidence. 6

7 Cicor Interim Report 2010 Increased market penetration with uniform image In the first half of 2010, the Group s management was systematically centralized at divisional level and operational processes were aligned. This step will ease technology and knowhow transfer, which will in turn facilitate the development and manufacture of complex individual components, while increasing value creation within the Group. At the same time, the master-brand strategy adopted worldwide during the reporting period will ensure a uniform market presence and underpin the provision of cross-divisional products and services. The formation of the Asia Division and the more intensive sales activities in North America enabled Cicor to develop its global footprint. This is the Group s response to a key requirement of major customers who wish to deal with a single worldwide partner. After the profound economic crisis, 2010 is a year of transition. The Cicor Group is currently benefitting from a more friendly climate in most of its markets and the continued trend towards outsourcing of electronic components manufacture. The Group s broad reach across different industries and countries, as well as its strong position in various niche markets, create a good platform for Cicor to benefit from the growth as markets recover. While the order situation in the defence sector remains subdued, there is a welcome upturn in the order intake elsewhere, particularly in the watch industry. In the medium term, Cicor expects demand to grow, especially in the industrial, medical technology, defence and automotive sectors, with particularly high growth rates anticipated in Asia. The Board of Directors and Group Management are confident that 2010 will see a consolidation of the welcome strengthening of operating profitability and the generation of positive operating results on a sustainable basis. Antoine Kohler Chairman of the Board of Directors Roland Küpfer CEO 7

8 Cicor Interim Report 2010 Financial Statements Consolidated Financial Statements (unaudited) Consolidated Balance Sheet in CHF 1000 Notes * * Assets Property, plant and equipment 37,657 40,958 45,504 Intangible assets 83,405 85,063 86,787 Deferred tax assets Non-current assets 121, , ,337 Inventories 40,342 36,421 40,288 Trade accounts receivable 26,900 23,603 28,820 Income tax receivable Other accounts receivable 4,116 2,869 3,798 Prepaid expenses and accruals 1,719 2,274 2,485 Cash and cash equivalents 18,256 20,414 15,745 Current assets 91,349 85,599 91,642 Total assets 212, , ,979 Liabilities and shareholders equity Ordinary share capital (6) 28,228 28,228 22,582 Share premium 114, , ,940 Treasury shares 29 3,461 3,276 Retained earnings 17,193 13, Translation adjustments 2,857 1,471 1,183 Equity attributable to Cicor shareholders 122, , ,176 Non-controlling interests ,547 Total equity 123, , ,723 Long-term provisions (5) 1,569 1,733 1,647 Deferred tax liabilities 3,939 4,159 5,054 Long-term financial liabilities (4) 13,397 16,492 15,844 Liabilities for post-employment benefits 7,505 7,439 1,933 Other long-term liabilities 298 1,735 5,986 Non-current liabilities 26,708 31,558 30,464 Short-term financial liabilities (4) 25,212 17,170 26,448 Trade accounts payable 19,973 18,281 18,299 Other current liabilities and accruals 14,296 17,613 17,057 Short-term provisions (5) 2,506 1,874 1,890 Income tax payable Current liabilities 62,221 55,030 63,792 Total liabilities 88,929 86,588 94,256 Total equity and liabilities 212, , ,979 * Restated, see note 1. 8

9 Cicor Interim Report 2010 Financial Statements Consolidated Income Statement in CHF 1000 Notes * Net Sales (3) 88,424 80,165 Material costs 41,607 38,109 Personnel costs 29,887 29,177 Other operating income Other operating expenses 11,249 10,934 Restructuring costs (5) 1,400 1,240 Operating profit before depreciation and amortization (EBITDA) 4,870 1,165 Depreciation 3,945 4,675 Operating profit / (loss) (EBIT) Financial income 2,208 1,936 Financial expenses 4,195 2,588 Profit / (Loss) before tax 1,062 4,162 Income tax Net profit / (loss) 1,547 4,584 Attributable to: - Cicor Technologies Ltd. shareholders 1,482 4,684 - Non-controlling interests Basic and diluted earnings per share (CHF) * Restated, see note 1. Consolidated Statement of Comprehensive Income in CHF Net profit / (loss) 1,547 4,584 Other comprehensive income: Actuarial gains/(losses) on employees defined-benefit plans 365 4,765 Income tax effect on actuarial gains/(losses) on employees defined-benefit plans Translation adjustments 1, Other comprehensive income 1,805 4,307 Total comprehensive income 3,352 8,891 Attributable to: - Cicor Technologies Ltd. shareholders 3,219 9,031 - Non-controlling interests

10 Cicor Interim Report 2010 Financial Statements Condensed Consolidated Cash Flow Statement in CHF Profit / (Loss) before tax 1,062 4,162 Depreciation / Amortization 4,329 4,675 Other non-cash income and expenses 97 4,135 Interest income Interest expenses 1, Increase/(decrease) in provisions 393 1,078 Increase/(decrease) in other non-current liabilities 1,783 1,034 Unrealized currency (gains)/losses Subtotal before working capital changes 3,339 2,811 (Increase) / decrease in working capital 8,500 5,689 Income tax paid Interest paid Interest received Net cash from / (used in) operating activities 6,190 1,628 Purchase of property, plant and equipment 1,460 1,540 Proceeds from sale of property, plant and equipment 21 Net cash (used in) / from investing activities 1,439 1,540 Dividend to non-controlling interests 251 Payment of finance lease liabilities 982 1,109 Proceeds from borrowings 8, Repayment of borrowings 2,085 5,645 Net cash from / (used in) financing activities 5,431 6,699 Net increase / (decrease) in cash and cash equivalents 2,198 6,611 Cash and cash equivalents at the beginning of the period 20,414 15,745 Net increase / (decrease) in cash and cash equivalents 2,198 6,611 Currency translation effects Cash and cash equivalents at the end of the period 18,256 9,118 10

11 Cicor Interim Report 2010 Financial Statements Consolidated Statement of Changes in Equity Equity attributable Non- Share Share Treasury Retained Translation to Cicor controlling Total in CHF 1000 capital premium shares earnings reserve shareholders interest equity Balance at 1 January , ,940 3, , ,176 1, ,723 Total comprehensive income for the period Net profit / (loss) 4,684 4, ,584 Other comprehensive income for the period Actuarial gains/(losses) on employees defined-benefit plans 4,765 4,765 4,765 Tax effect on actuarial gains/(losses) on employees defined-benefit plans Translation adjustments Other comprehensive income for the period 4, , ,307 Total comprehensive income for the period 8, , ,891 Transactions with owners, recorded directly in equity Share based payments Dividend to equity holders Total transactions with owners Balance at 30 June , ,940 3,276 9,760 1, ,200 1, ,636 Balance at 1 January , ,695 3,461 13,730 1, , ,078 Total comprehensive income for the period Net profit / (loss) 1,482 1, ,547 Other comprehensive income for the period Actuarial gains/(losses) on employees defined-benefit plans Tax effect on actuarial gains/(losses) on employees defined-benefit plans Translation adjustments 1,364 1, ,444 Other comprehensive income for the period 351 1,386 1, ,805 Total comprehensive income for the period 1,833 1,386 3, ,352 Transactions with owners, recorded directly in equity Share based payments Treasury shares sold 3,432 1,727 1,705 1,705 Total transactions with owners 3,432 1, , ,802 Balance at 30 June , , ,193 2, , ,528 11

12 Cicor Interim Report 2010 Financial Statements Notes to the Consolidated Financial Statements (unaudited) Changes in accounting policies 1. Principles of consolidation and valuation These condensed consolidated interim financial statements as of 30 June 2010 are prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information and disclosures required for full annual financial statements and should be read in conjunction with the Group s annual report as at 31 December The consolidated financial statements of the Group as at and for the year ended 31 December 2009 are available at www. cicor.com or upon request from the Company s registered office. These condensed consolidated interim financial statements were approved by the Board of Directors on 26 August When preparing the consolidated interim statements, management is required to make estimates and assumptions. Any alterations to these estimates and assumptions are adjusted in the reporting period in which the estimates and assumptions are changed. Income taxes are calculated based on an estimate of the income tax rate expected for the whole year. The consolidated interim financial statements were drawn up in compliance with the accounting principles described in the consolidated annual financial statements 2009 except of the changes described below. Segment reporting Cicor s intention is to increase its presence and strengthen its market position in Asia. The Board of Directors therefore decided to manage the companies in Asia as a separate Division. This change in structure mainly supports the Group in focusing on relevant markets and business opportunities. As a consequence, segment reporting in the annual and interim reports is amended by the new Division (Asia Division). This change in reporting structure affected also the composition of the cash-generating units of the Group. Goodwill, previously recorded in the cash-generating unit ES (formerly EMS) Division was divided and allocated to the two relevant Divisions (ES and Asia) by using the relative value approach. Previous year s figures have been adjusted accordingly. Primary statements The presentation of the consolidated income statement and the condensed statement of cash flow has changed to further increase its informative value. Changes in WIP are included in material costs, and other operating income is shown next to other operating expenses. Previous year s data has been adjusted accordingly. To better reflect the maturities of the liabilites, the liabilities for post-employment benefits were reclassified from shortterm to long-term liabilites. Previous year s data has been adjusted accordingly. IFRS standards and interpretations applied for 2010 Cicor has implemented various amendments to existing standards and interpretations, which have no material impact on the Group s overall results and financial position. 12

13 Cicor Interim Report 2010 Financial Statements 2. Subsidiaries Nominal Nominal in CHF 1000, unless otherwise stated Participation in % Currency share capital share capital Cicorel SA, Boudry / Switzerland * Engineering/Production/Sales/Distribution 100 CHF 8,000 8,000 Photochemie AG, Unterägeri / Switzerland * Engineering/Production/Sales/Distribution 100 CHF 1,000 1,000 Reinhardt Microtech AG, Wangs / Switzerland * Engineering/Production/Sales/Distribution 100 CHF 1,800 1,800 Reinhardt Microtech GmbH, Ulm / Germany Engineering/Production/Sales/Distribution 74.9 EUR RHe Microsystems GmbH, Radeberg / Germany * Engineering/Production/Sales/Distribution 100 EUR Electronicparc Holding AG, Bronschhofen / Switzerland * Holding/Finance 100 CHF 23,271 23,271 Auparc AG, Jona / Switzerland Engineering 100 CHF Systel SA, Quartino /Switzerland Engineering/Production/Sales/Distribution 100 CHF Swisstronics Contract Manufacturing AG, Bronschhofen / Switzerland Engineering/Production/Sales/Distribution 100 CHF 3,000 3,000 Systronics SRL, Arad / Romania Production 100 RON 5,145 5,145 Systel Italia SRL, Milano / Italy Sales/Distribution 100 EUR ESG Holding Pte Ltd., Singapore * Holding/Finance 100 SGD 1,896 1,896 Cicor Asia Pte Ltd., Singapore Sales/Distribution 100 SGD 1,000 1,000 Cicor Ecotool Pte Ltd., Singapore Engineering/Production 100 SGD 1,000 1,000 PT ESG Panatec, Batam / Indonesia Production 100 USD Brant Rock Enterprises Corporation, British Virgin Islands Holding/Finance 100 USD ESG Anam (VN) Ltd., Anam / Vietnam Production 100 USD 1,500 1,500 Cicor Management AG, Zurich / Switzerland * Management Services 100 CHF * Directly held subsidiaries of Cicor Technologies Ltd. 13

14 Cicor Interim Report 2010 Financial Statements 3. Segment reporting Total reportable Corporate and PCB Division ME Division ES Division Asia Division segments eliminations Consolidated in CHF Income statement Sales to external customers 17,794 15,210 44,548 10,872 88,424 88,424 Intersegment sales Segment result before depreciation and amortization (EBITDA) 1,375 2,330 1,156 1,042 5,903 1,033 4,870 Segment result (EBIT) ,994 1, Balance sheet Intangible segment assets 19,321 16,600 34,321 10,084 83, ,405 Other than intangible segment assets 41,098 29,571 47,790 9, ,864 1, ,052 Total assets 60,419 49,170 82,111 19, ,189 1, ,457 Segment liabilities 44,243 16,065 43,544 8, ,257 23,328 88,929 Other segment information Depreciation and amortization 1,610 1, , ,945 Capital expenditure for non-current assets ,398 1,398 Restructuring costs 1,400 1,400 1,400 Total reportable Corporate and PCB Division ME Division ES Division Asia Division segments eliminations Consolidated in CHF Income statement Sales to external customers 13,930 16,872 41,426 7,937 80,165 80,165 Intersegment sales Segment result before depreciation and amortization (EBITDA) 1,897 3, , ,165 Segment result (EBIT) 3,804 1, , ,510 Balance sheet Intangible segment assets 19,321 22,110 34,341 9,185 84, ,063 Other than intangible segment assets 39,092 32,134 48,326 8, ,163 1, ,603 Total assets 58,413 54,244 82,667 17, ,120 1, ,666 Segment liabilities 40,951 16,189 38,034 8, ,028 17,440 86,588 Other segment information Depreciation and amortization 1,907 1,389 1, , ,675 Capital expenditure for non-current assets ,654 1,654 Restructuring costs 1,240 1,240 1,240 Cicor defines its reportable segments based on the internal reporting to its chief operating decision maker, which is the Board of Directors. The Board bases its strategic and operative decisions on these monthly distributed reports, which include the aggregated financial data for the Group and for the four divisions. The divisions are the Printed Circuit Boards (PCB) Division, which supplies Printed Circuit Boards to various different industries; the Electronic Solutions (ES - formerly EMS) Division, which provides electronic manufacturing services to the electronics industry; and the Microelectronics (ME) Division, which focuses on thin-film-coating technologies and a wide range of microelectronic manufacturing capabilities. Whereas the three Divisions mentioned mainly operate in the European and American markets, the Asia Division provides the Group s technological competences in the Asian market. 14

15 Cicor Interim Report 2010 Financial Statements Reconciliation of total reportable segment result in CHF Total reportable segment result (EBIT) 1,994 2,710 Eliminations for inter-segment profits Other corporate expenses 1, Financial income 2,208 1,936 Financial expenses 4,195 2,588 Consolidated profit / (loss) before tax 1,062 4,162 Entity-wide information 2010 Switzerland Germany Other Eliminations Total in CHF Sales to external customers (attributed to the entity s country of domicile) 64,182 9,294 14, , Segment assets 171,358 18,988 23,454 1, , Switzerland Germany Other Eliminations Total in CHF Sales to external customers (attributed to the entity s country of domicile) 60,357 10,569 9, , Segment assets 172,998 21,824 21,778 4, ,666 in CHF % % Sales by customer s destination Switzerland 46, , Europe (without Switzerland) 29, , Other 12, , Total 88, , Sales by industry Aerospace & defence 9, , Communication 14, , Industrial 23, , Medical 19, , Automotive & transport 6, , Watches & consumer 9, , Other 6, , Total 88, , Major customers Cicor Group has no single customer with 10% or more of the Group s consolidated sales. 15

16 Cicor Interim Report 2010 Financial Statements The restructuring costs totalling TCHF 1,400 contain in addition to the costs mentioned above an impairment loss of TCHF 384. This impairment is recognized on assets, which become redundant. 4. Financial liabilities Long-term financial liabilities in CHF Mortgages 6,000 6,000 Financial leases 931 1,636 Borrowings, long-term 6,466 8,856 Total long-term financial liabilities 13,397 16,492 Short-term financial liabilities in CHF Bank overdrafts 1,753 1,034 Bank borrowings, short-term 17,652 11,723 Financial leases 1,496 1,840 Short-term portion of long-term borrowings 4,311 2,573 Total short-term financial liabilities 25,212 17,170 Maturity of financial liabilities in CHF Within 1 year 25,212 17,170 Within 2 to 5 years 13,356 16,412 Above 5 years Total financial debts 38,609 33, Provisions The Board of Directors and Group Management decided to streamline operational processes in the ES Division, and to concentrate production at the Bronschhofen (Switzerland) and Arad (Romania) sites in Europe, as well as in Asia in Singapore, Vietnam and Indonesia. This involves a move of Systel SA s production in Quartino (Switzerland) to the other locations. For that reason, a restructuring provision was recognized. As per 30 June 2010, the residual provision of TCHF 623 contains costs for the ongoing rental contract, for personnel measures and for the deconstruction of the production facilities. In 2009, Cicor has recognized a provision for restructuring costs for the concentration of Swisstronics Contract Manufacturing AG (ES Division) at Bronschhofen and the closing of its production facility in Jona. As per 30 June 2010, the residual provision amounts to TCHF Issued capital Capital structure in CHF 1000 Share capital at 1 January ,582 Increase of ordinary share capital as per 23 November 2009 of 564,552 registered shares of CHF 10 5,646 Share capital at 31 December ,228 Share capital at 30 June ,228 2,822,762 registered shares of CHF 10 Ordinary share capital At the Shareholders Meeting of 13 May 2009, the shareholders decided to authorize the Board of Directors to increase the share capital by a maximum of 600,000 fully paid in shares at a nominal value of CHF 10 until 13 May Based on this decision, the Board of Directors increased the share capital by CHF 5,645,520 on 23 November 2009 by issuing 564,552 shares. They were placed in the market at a price of CHF 18. Authorized capital At the Shareholders Meeting of 19 May 2010, the shareholders decided to authorize the Board of Directors to increase the share capital by a maximum of 600,000 fully paid in shares at a nominal value of CHF 10 until 19 May Conditional capital At the Shareholders Meeting of 13 May 2009, the shareholders decided to increase the conditional share capital up to 200,000 fully paid in registered shares with a total nominal value up to CHF 2,000,000 for the exercise of stock option rights granted to officers and other key employees under an employee stock option plan established by the Board of Directors. 16

17 Cicor Interim Report 2010 Financial Statements At the Shareholders Meeting of 13 May 2009, the shareholders decided to create additional conditional share capital of up to 500,000 fully paid in registered shares with a total nominal value of up to CHF 5,000,000 for the exercise of conversion rights granted to holders of convertible debt securities to be issued by the company. Such conversion rights would have to be exercised within five years of the issuance of such convertible debt securities. As of 30 June 2010, according to the stock option plans approved by the Board of Directors on 3 January 2008, 3 January 2009 and 26 November 2009, 132,000 options (previous year 39,333) were outstanding. 7. Acquisition of non-controlling interest in subsidiary On 15 May 2008 Cicor Technologies Ltd. acquired 60 % of ESG Holding Pte Ltd., Singapore. The purchase agreement contained a call/put option for the acquisition of the residual 40 % of the group. Management has decided to account for the agreement as an anticipated acquisition of the underlying minority interest based on the requirement of IAS 32. Cicor Technologies Ltd. exercised its call option as per 12 March 2010 and now owns 100 % of the ESG Group. The acquisition was settled by using 50,885 treasury shares. This transaction had a positive effect in equity of TCHF 1, Seasonality of the business Although Cicor s business has been fluctuating in the past, these fluctuations were not due to seasonal effects. 9. Dividend paid There was no dividend paid out of available earnings. Assessment The prices of the call options issued to executive directors and management on 3 January 2008, 3 January 2009 and 26 November 2009 and were calculated according to a trinomial model depending on the vesting periods using the following parameters: Plan 1 Plan 2 Plan 3 Share price on 3 January 2008 / 2009 and 26 November 2009 CHF CHF CHF Exercise price CHF CHF CHF Expected volatility 28 % 40 % 45 % Life of the option 3 January January November 2016 Risk-free interest rate 2.97 % 2.44 % 1.88 % Type of the option American American American The weighted average share price for the first 6 months 2010 was CHF The total option expenses for the first half of 2010 amounts to TCHF 97. Option holdings The following table shows the option holdings of executive directors and the members of the executive and senior management as of 30 June 2010: Financial year 2010 Plan 1 Plan 2 Plan 3 Outstanding options per 1 January ,000 17,500 99,500 Granted Forfeited Exercised Expired Outstanding options per 30 June ,000 17,500 99,500 Thereof exercisable 10,000 5,833 49,750 No options have been exercised by the reporting date. These potential ordinary shares are dilutive. The dilution effect is immaterial; therefore, the basic and dilutive earnings per share do not differ. 10. Stock option plan Cicor Technologies Ltd. has issued options under three share option plans during the financial years 2008 and In 2010, no additional options have been issued. 11. Subsequent events There were no events between 30 June 2010 and 26 August 2010 that would require an adjustment to the carrying amounts of assets and liabilities or need to be disclosed under this heading. 17

18 Cicor Interim Report 2010 Addresses and Contact Headoffice Contact Cicor Technologies Ltd. Route de l Europe 8 CH-2017 Boudry Cicor Management AG Leutschenbachstrasse 95 CH-8050 Zürich Phone Fax info@cicor.com Investor Relations Phone investor@cicor.com Asia Division Cicor Asia Pte Ltd. 45 Changi South Avenue 2 #04-01 Singapore Phone Fax PCB Division Photochemie AG Gewerbestrasse 1 CH-6314 Unterägeri Phone Fax Cicorel SA Route de l Europe 8 CH-2017 Boudry Phone Fax Cicorel SA Avenue de Préville 4 CH-1510 Moudon Phone Fax ME Division Reinhardt Microtech AG Aeulistrasse 10 CH-7323 Wangs Phone Fax Reinhardt Microtech GmbH Sedanstrasse 14 DE Ulm Phone Fax RHe Microsystems GmbH Heidestrasse 70 DE Radeberg Phone Fax ES Division Swisstronics Contract Manufacturing AG Industriestrasse 8 CH-9552 Bronschhofen Phone Fax Systel SA Via Luserte Sud 7 CH-6572 Quartino Phone Fax S.C. Systronics S.R.L. Zone Parc Industrial F-N RO Arad Phone Fax Cicor Ecotool Pte Ltd. 45 Changi South Avenue 2 #04-00 Singapore Phone Fax PT ESG Panatec Batamindo Industrial Park, Lot 338 Jalan Beringin, Muka Kuning Batam 29433, Indonesia Phone Fax ESG Anam (VN) Ltd. 15 VSIP Street 4 Thuan An District Binh Duong Province, Vietnam Phone Fax

19 Publication Details Concept and design: schneiter meier külling AG, Zürich Photo: Cicorel SA, Moudon Printing: Druckerei Feldegg AG, Schwerzenbach This Interim Report is available in German, English and French (extract) and can be accessed on the Internet at The printed German text is binding. Cicor Technologies Ltd., August 2010

20 Cicor Technologies Ltd. World Trade Center Leutschenbachstrasse Zurich Switzerland Phone: Fax: Web: