Efore Annual General Meeting April 5, Review by the CEO Jorma Wiitakorpi

Transcription

1 Efore Annual General Meeting April 5, 2017 Review by the CEO Jorma Wiitakorpi

2 EFORE overview

3 Efore The trusted power partner KEY FACTS Net Sales 75,4 M (2016) 442 employees (end 2016) Established in shareholders Quoted on Nasdaq Helsinki Efore Plc is an international group specialised in design, development and production of demanding power products. Efore designs and manufactures cutting edge power conversion products; that offer superior energy efficiency, reliability, more intelligent designs, flexibility and creativity for the telecommunications including networks and broadcasting, industrial, medical, LED lighting and transportation markets. Efore competences and know-how are embodied in the solutions we provide to our customers: high efficiency and high reliability.

4 Efore worldwide Stockholm, Sweden Tampere, Finland Espoo, Finland Stroudsburg, USA Tunis, Tunisia Castelfidardo, Italy Hong Kong, China Suzhou, China Headquarters Technology and Development Production Sales office Efore Plc is headquartered in Espoo, Finland, with major offices in Italy, China and Sweden, production unit in Tunisia, and Sales and Marketing organizations in Europe, North America and Asia.

5 We re proud of our worldwide customers Industry leading customers globally recognize Efore Group as a reliable and trusted partner for their power supply applications. DEFENCE INDUSTRIAL DC SYSTEM DIGITAL POWER TELECOM LIGHTING MEDICAL HOUSEHOLD APPLIANCES

6 Awarded supplier SUPPLIER OF THE YEAR ABB Substation Automation Products SUPPLIER OF THE YEAR Ericsson SUPPLIER OF THE YEAR & BEST IN CLASS SUPPLIER National Instruments BEST IN CLASS SUPPLIER National Instruments BEST IN CLASS SUPPLIER QUALITY AWARD TOP TIER 1 SUPPLIER National Instruments

7 Financial statements

8 Financial year 2016 in brief Net sales fell short of previous year s level and net result was weak. The whole year and especially the first half of the year was characterized by a weaker than forecasted demand in the telecommunications sector. In the early part of the year the industrial sector sales were almost at the same level as in the corresponding period of last year but during the latter part of the year the industrial sales went down compared with the corresponding period of last year. Efore and Wuxi Hodgen Technology Co Ltd signed the master supply and asset agreements related to the outsourcing of manufacturing as well as manufacturing support functions at the Suzhou plant in China. National Instruments has recognized Efore again with the Global Supplier Award. In the autumn, Efore started several actions to reduce its fixed costs and lighten the balance sheet.

9 Key indicators Key indicators, EUR million Net Sales 75,4 89,9 -Telecommunication sector 34,2 44,8 -Industrial sector 41,2 45,1 Adjusted operating result -4,8-1,6 Operating result -9,7-2,0 Result before taxes -10,4-3,3 Net result -11,4-3,4 Earnings per share, EUR -0,22-0,07 Solvency ratio, % 15,7 34,2 Gearing, % 99,5 24,5 Cash flow from business operations -1,1 1,8

10 Net sales and adjusted operating result ,1 74,5 85,3 89,9 75, MEUR -1,3-4,3 0,1-1,6-4, Net Sales Adjusted operating result

11 Net sales development 50,0 45,0 40,0 35,0 22,0 0,7 1,0 0,5 0,0 30,0 25,0 23,1 21,5 19,7-0,5-1,0 Industrial Telecom 20,0-1,5 Adjusted Operating Result 15,0 10,0 5,0 25,2 19,6-2,3-2,6 18,0 16,2-2,2-2,0-2,5 0,0 MEUR H1/2015 H2/2015 H1/2016 H2/2016-3,0

12 Balance sheet: assets ,0 15,8 Non current assets m 14,9 11,3 15,5 14,8 6,3 6,4 Dec. 31, 2015 Dec. 31, 2016 Inventories Trade & other receivables Cash and cash equivalents

13 Balance sheet: equity and liabilities ,0 3,8 7,6 2,0 Equity Non-current liabilities 20 32,8 38,7 Current liabilities 10 0 m Dec. 31, 2015 De. 31, 2016

14 Financial development in 2017 The operating result and the cash flow for 2017 are estimated to be positive. Efore Plc has prematurely repaid the EUR 2 million loan granted by Jussi Capital Oy on March 31, Financial guidance for 2017 (published on Feb. 15, 2017) Due to the financial situation of the Group and the structural changes currently taking place, giving earnings guidance is exceptionally challenging but the operating result and the cash flow for 2017 are estimated to be positive. Efore is not for the time being making forecasts about its long term development.

15 Timeline of outsourcing project in China Q4 Q2 Q1 Q2 Q4/ PCBA - Manufacturing Q1/ PCBA manufacturing transferred to an EMS partner manufacturing transfer to an EMS partner finalised but it didn t succeed according to the plan process in Suzhou reorganized - Decision to start outsourcing project - Process to find right partner started - Partner Due Diligence Q3 Q Q1 Q2 - Final partner decision - Agreement with Hodgen undersigned - Hodgen took over production and manufacturing support functions - Production transfer to Hodgen started - All production and production connected functions to Hodgen - New company - Project takes over lease agreement of Efore Suzhou facility phase is over

16 Efore s headcount in China * 2015* 2016* 03/2017 *Status at the end of the financial year

17 Inventory and Fixed Assets Net Value China Inventory Fixed Assets Net Value KEUR - Dec.31, 2014 June 30, 2015 Dec. 31, 2015 June 30,2016 Dec. 31, 2016

18 Outlook /2 The operating result and the cash flow for 2017 are estimated to be positive Company s position strengthened within present customer base and new distribution agreements signed in the USA and in Spain. New projects won in telecom sector, deliveries start Positive market development in Digital Light and Telecom sector. New products will be launched for Digital Light and Digital Power markets- More intelligence Harsh environment

19 Outlook /2 New company structure - Almost 50 % less personnel than in the beginning of New facilities in China, Italy and Finland - More focus on R & D activities and Value Added Solutions - Less fixed costs - Lighter balance sheet - Updating strategy and business plans

20 Detailed information on Annual Accounts can be found in Annual Report Group level from page 13 - Parent company from page 53 - Auditor s report from page 75

21 Thank you