Normet Group Financial Statements 2018

Transcription

1 Normet Group Financial Statements 2018

2 EXECUTIVE SUMMARY Normet posted a very strong first half of year Turnover grew by 24% and earnings before depreciations and amortizations (EBITDA) more than doubled in comparison to the same period in Full year 2018 forecasts for both turnover and earnings have been increased. Normet Equipment and Services businesses achieved strong growth. Ground Control and Construction Technology (GCCT) grew modestly compared to first half of Profitability improved in all business lines. Equipment business has developed favorably during the year resulting in a +33% growth yoy compared to H Current capacity meet the demand and manufacturing operations are in balance. Demand in the Equipment business is expected to remain on a good level also during the H Normet Service business reached a growth of +22 % yoy compared to H Growth was generated across all regions supported by strong Equipment business. Demand in Service business is expected to remain good level also during the year H GCCT (Ground Control and Construction Technologies) has not been progressing according the expectations and grew only modestly compared to H1 2017, falling short of expectations. H1 Net Sales increased by 24% to 148M and EBITDA was in the estimated range ending to 10,8% level. Main drivers for the improvements was increased volume and profitability in Equipment and Service businesses. No major one-time costs was recorded during the period and ongoing organizational development actions are expected to increase efficiency and improve overall profitability towards the year-end Farmi Forest Oy market situation has remained challenging and restructuring actions are ongoing. The ongoing restructuring measures will deliver 10 meur annualized efficiency improvement and full effect of of this will be seen by end of Group wide project Cash To Grow program has supported the working capital management and Normet reached the NWC/Net Sales level below 27 % by June Program continues and further improvements are expected. Currencies has been very volatile against EUR and effecting realized and unrealized exchange rate losses of -1,3 MEUR compared to H ,6M. Outlook for 2018 is cautiously positive. Strong demand is expected to continue in Equipment and Service business and GCCT is expected to have moderate growth. Based on the current market outlook, customer business activity and order backlog, the management expects sales to be in the range of MEUR and the EBITDA to be in the range of 12-14% for the full year Applied sales price increases and overall group wide cost efficiency program are progressing well and have positive impact in the profitability towards the year-end Robin Lindahl President, CEO Normet Group

3 NORMET GROUP INCOME STATEMENT AND BALANCE SHEET Consolidated IFRS IS and BS, short ACT Normet Group (NG) - EUR REVENUE Change in inventories of finished goods and work in progress Other operating income Material and services Employee benefits expense Depreciation, amortisation and impairment Other operating expenses OPERATING PROFIT (-LOSS) Financing income and expenses PROFIT (LOSS) BEFORE TAXES Income taxes PROFIT (LOSS) FOR THE PERIOD NON-CURRENT ASSETS Intangible assets Tangible assets Investments accounted for using the equity method Held to maturity Investments Non-current receivables Deferred tax asset NON-CURRENT ASSETS CURRENT ASSETS Inventories Current receivables Cash and cash equivalents CURRENT ASSETS ASSETS EQUITY AND LIABILITIES EQUITY Share capital Share premium Legal reserve Other reserves Retained earnings Profit/loss for the period EQUITY Non-current liabilities Current liabilities LIABILITIES EQUITY AND LIABILITIES

4 NORMET GROUP CASH FLOW STATEMENT Consolidated Statement of Cash Flows ACT Normet Group (NG) - EUR PROFIT/LOSS FOR THE PERIOD , ,19 Depreciation, amortisation and impairment , ,94 Gains and losses of disposals of fixed assets and other non-current asset , ,71 Share of profit/loss accounted for using the equity method ,23 0,00 Unrealised foreign exchange gains and losses , ,84 Financial income and expenses , ,11 Appropriations ,02 0,00 Tax on income from operations , ,43 Other adjustments 0,00 0,00 Increase / decrease in inventories , ,62 Increase /decrease in trade and other receivables , ,21 Increase / decrease in trade payables , ,22 Change in provisions , ,98 Interest paid , ,95 Dividends received 0,00 0,00 Interest received , ,44 Other financing items , ,52 Income taxes paid , ,17 Net cash from operating activities , ,03 Purchase of tangible and intangible assets , ,17 Proceeds from sale of tangible and intangible assets , ,34 Investments accounted for using the equity method 0,00 Loans granted , ,73 Proceeds from repayments of loans , ,02 Net cash used in investing activities , ,53 Proceeds from issue of share capital 0,00 0,00 Proceeds from current borrowings , ,23 Repayment of current borrowings , ,26 Proceeds from non-current borrowings , ,02 Repayment of non-current borrowings , ,77 Payment of leasing liabilities ,62-558,62 Dividends paid 0,00 0,00 Net cash used in financing activities , ,61 Net change in cash and cash equivalents , ,10 Cash and cash equivalents, opening amount , ,28 Net increase/decrease in cash and cash equivalents , ,10 Effects of exchange rate fluctuations on cash held , ,90 Cash and cash equivalents , ,49

5 NORMET GROUP OY LEADERSHIP TEAM, SHAREHOLDERS, MATERIAL DEBT INSTRU- MENTS AND MATERIAL RISK FACTORS Normet Group Oy Operating Model and Leadership Team from : Normet Group has renewed its operating model. The new operating model enables Normet to increase accountability, customer intimacy and customer focus. Additionally, Normet also aims to simplify its operations and flatten its organisation. The changes are made to support the Normet growth ambitions, whilst improved efficiency enables increased profitability strengthening ability to invest into the future. To bring the customer voice stronger into the Normet leadership team, the global sales has been divided into four sales ares. The sales areas are responsible for sales of the whole Normet portfolio. The sales areas are led by: APAC: Senior Vice President Neil Fitzmaurice EMEA: Senior Vice President Jukka Kurhinen North America: Senior Vice President Mike Rispin Latin America: Senior Vice President Marcelo Anabalon The offering, product marketing, supply chain and end-2-end profit and loss responsibility resides in the business lines. The business line structure and leadership remains the same: Equipment Business Line: Senior Vice President Kari Hämäläinen Service Business Line: Senior Vice President Mikko Immonen Ground Control & Construction Technologies: Senior Vice President Himanshu Kapadia In addition to sales and business lines following functions are part of the Normet leadership team: Finance led by Chief Financial Officer Riku Mäkinen Human resources led by Vice President Niina Pesonen IT & Innovation led by Chief Digital Officer Sanna Pekari Legal & Compliance led by General Counsel Kimmo Karihtala Marketing and Corporate Development led by Vice President Riku Helander Normet Group Oy Shareholders: Shareholder % of shares Cantell Oy 72,79 % Normet Management Oy 22,63 % Orox Oy 4,57 % Material Debt Instruments: 1) Hybrid Equity Bond, EUR 30m 2) Loan Facility, EUR 48.8m 3) Short term loans and credit facilities, EUR 29.9m Material Risk factors: General outlook in mining and tunneling is more optimistic than one year ago but all the geopolitical uncertainty can cause unexpected risks in business and delays in the projects. Equipment and Service business can also be influenced by Supply Chain related risks with availability of parts and components as well as availability of logistics capacity. Volatility in the foreign exchange markets can cause unexpected variation in the realized and unrealized currency values in international business despite of hedging policy applied