WULFF GROUP PLC HALF-YEAR FINANCIAL REPORT August 3, 2017 at 9:00 A.M. WULFF GROUP PLC S HALF-YEAR FINANCIAL REPORT FOR JANUARY 1 JUNE 30, 2017 Net sales declined and profitability decreased the outlook for the comparable operating result remains unchanged JANUARY JUNE 2017 BRIEFLY Net sales totalled EUR 28.9 million (EUR 30.1 million). Net sales decreased by 4.1 percentages from the previous year. EBITDA was EUR 0.0 million (EUR 0.3 million). Comparable EBITDA was EUR 0.0 million (EUR 0.1 million). Operating profit (EBIT) was EUR -0.2 (EUR 0.1 million). Comparable operating profit (EBIT) amounted to EUR - 0.2 million (EUR -0.1 million). Earnings per share (EPS) were EUR -0.05 (EUR -0.01). Equity-to-assets ratio was to 44.5 percentages (December 31, 2016: 50.5 %). The outlook for the 2017 comparable operating profit remains unchanged. Comparable operating profit 2017 is estimated to grow. APRIL JUNE 2017 BRIEFLY Net sales totalled EUR 13.5 million (EUR 14.6 million). Net sales decreased by 7.3 percentages from the previous year. EBITDA was EUR -0.2 million (EUR 0.5 million). Comparable EBITDA was EUR -0.2 million (EUR 0.4 million). Operating profit (EBIT) was EUR -0.3 million (EUR 0.4 million). Comparable operating profit (EBIT) was EUR - 0.3 million (EUR 0.3 million). Earnings per share (EPS) were EUR -0.06 (EUR 0.04). WULFF GROUP S CEO KIMMO LAAKSONEN I believe that the developing economic situation will affect Wulff s business positively during the rest of the year even though the market situation has remained challenging. Typically for the industry, a significant portion of the annual profit is made in the last quarter of the year. Wulff s aim is to further improve the profitability of its operations and its competitiveness. Among other things, strengthening our competitiveness requires significant investments in building a winning strategy for the future, developing our sales and customer service, reacting quickly in our customer interface, and utilizing digitalization to our benefit. Investing in tomorrow s growth businesses is important for us, and renewal also requires that we sharpen our strategy. The initiated development projects are investments that will affect our result as expenses in 2017. Digitalization, automatization, new working environments and mobile work are a chance for Wulff to grow in a new market. Due to our own strong performance and our development projects, I believe that 2017 will be a year of positive development for us that will also lay a strong foundation for the upcoming years. GROUP S NET SALES AND RESULT PERFORMANCE In January-June 2017 net sales totalled EUR 28.9 million (EUR 30.1 million), and EUR 13.5 million (EUR 14.6 million in the second quarter. Net sales decreased by 4.1 percentages in January-June and 7.3 percentages in the second quarter. The decline in net sales is a result of lost contracts and trimming of the product range, among other things. Wulff has invested significantly in developing its range of products for the workplace which is believed to have a positive effect on the net sales during the rest of the year. In January-June 2017 gross margin amounted to EUR 9.7 million (EUR 10.7 million) being 33.7 percentages (35.4 percentages), and EUR 4.5 million (EUR 5.6 million) in the second quarter being 33.4 percentages (38.2 percentages). The gross margin% decreased due to write-downs of inventories that were larger than during the previous year. Furthermore, the gross margin was affected by the concentration of demand on low margin products during the first halfyear period. The continuous streamlining of procurement processes is one of Wulff s most important measures to improve profitability.
In January-June 2017 employee benefit expenses amounted to EUR 6.4 million (EUR 6.8 million) being 22.0 percentages (22.7 percentages) of Net Sales, and EUR 3.1 million (EUR 3.4 million) in the second quarter being 23.2 percentages (23.1 percentages) of Net Sales. Other operating expenses amounted to EUR 3.4 million (EUR 3.8 million) in January-June 2017 being 11.9 percentages (12.7 percentages) of Net Sales, and EUR 1.6 million (EUR 1.9 million) in the second quarter being 12.0 percentages (12.8 percentages) of Net Sales. Employee benefit and other operating expenses were still affected by the implemented successful cost-saving measures. To improve its profitability, Wulff Group continues to examine its cost structure as part of ongoing reforms. In January-June 2017 EBITDA was EUR 0.0 million (EUR 0.3 million) being 0.1 percentages (1.1 %) of net sales, and EUR -0.2 million (EUR 0.5 million) in the second quarter. In January-June 2017 the comparable EBITDA amounted to EUR 0.0 million (EUR 0.1 million) and EUR -0.2 million (EUR 0.4 million) in the second quarter. 2016 EBITDA included a car sales profit of EUR 0.2 million in January-June and of EUR 0.1 million in the second quarter that affected comparability. 2017 EBITDA did not include items affecting the comparability. In January-June 2017 the operating profit (EBIT) amounted to EUR -0.2 million (EUR 0.1 million) being -0.6 percentages (0.4 percentages) of net sales, and EUR -0.3 million (EUR 0.4 million) in the second quarter. In January-June 2017 the comparable operating profit (EBIT) amounted to EUR -0.2 million (EUR -0.1 million) and EUR -0.3 million (EUR 0.3 million) in the second quarter. The January-June 2016 operating profit included a car sales profit of EUR 0.2 million and EUR 0.1 million in the second quarter that affected comparability. In January-June 2017 the financial income and expenses totalled (net) EUR -0.1 million (EUR -0.2 million) including interest expenses of EUR 0.0 million (EUR 0.1 million) and mainly currency-related other financial items (net) EUR -0.1 million (EUR -0.1 million). In the second quarter, the financial income and expenses (net) totalled EUR -0.1 million (EUR -0.1 million). In January-June 2017 the result before taxes was EUR -0.3 million (EUR -0.0 million), and EUR -0.4 million (EUR 0.3 million) in the second quarter. In January-June 2017 the net profit was EUR -0.4 million (EUR -0.1 million), and EUR -0.4 million (EUR 0.3 million) in the second quarter. Earnings per share (EPS) were EUR -0.05 (EUR -0.01) in January-June 2017, and EUR -0.06 (EUR 0.04) in the second quarter. CONTRACT CUSTOMERS DIVISION Wulff s Contract Customers Division is the customer s comprehensive partner in the field of workplace products and international fair services in Finland and Scandinavia. In January-June 2017 the division s net sales totalled EUR 24.2 million (EUR 25.2 million), and EUR 11.3 million (EUR 12.1 million) in the second quarter. In January-June 2017 the operating profit (EBIT) was EUR -0.1 million (EUR 0.1 million), and EUR -0.1 million (EUR 0.5 million) in the second quarter. It is important for Wulff to develop its services together with its customers. To be able to offer customers new and interesting products and services that are at the leading edge of development in a rapidly changing world, it requires strong investments. Wulff s aim is to make its own and its customers business as profitable as possible. That is why Wulff is continuously developing the cost-efficiency of its operations. Wulff has grown and renewed together with its customers. Opened in 1890 in Helsinki, the small stationary store now offers customers comprehensively everything for the workplace. One of the most popular cost and time saving supply solutions in Finland is Wulff s MiniBar that can be found in hundreds of companies. The MiniBar, like its hotel namesake, is an automated refilling service that houses on its shelves office and it supplies, catering and facility management products. The TOP3 products in Wulff s MiniBar service are coffee, ink cartridges and paper. In Finland, Wulff is the industry s strongest player. The net sales and profitability of Wulff Supplies, which serves customers in Sweden, Norway, and Denmark, declined in January-June 2017. The position of the Wulff Group is, however, strong in the Scandinavian market. The company has invested strongly in the new webstore which is believed to bring in both new customers and additional sales to existing customers. Wulff Supplies serves the Group s Scandinavian and Nordic customers. Wulff s non-exclusive webstore Wulffinkulma.fi, which serves small companies, was renewed at the beginning of the year. The update took into account especially the continuously growing number of mobile users. The webstore serves customers with a product range that is much more diverse than what competitors are able to offer. Wulffinkulma.fi is also known for its fast and reliable deliveries.
International fair services are a part of Wulff s operations. Wulff Entre s investments in sales and its development show in the strengthening of current customer relationships and new customerships. In addition to Finland Wulff Entre has acquired new clientele from Germany, Sweden, Norway and Russia. In 2017, Wulff Entre will export Finnish know-how to over 30 countries. Wulff Entre is the market leader in Finland and there has been a solid trust in Wulff Entre s ability to find the right international venues and meeting places for over 90 years. With its international operations, the company is investing strongly in a new way of marketing, web presence, and social media. DIRECT SALES DIVISION The Direct Sales Division s aim is to help its customers by offering the best novelties and ideas in the market and the most professional, personal, and local service and sales network. In January-June 2017 the division s net sales totalled EUR 4.7 million (EUR 4.9 million), and EUR 2.2 million (EUR 2.5 million) in the second quarter. In January-June 2017 the operating profit was EUR 0.1 million (EUR 0.2 million), and EUR -0.1 million (EUR 0.0 million) in the second quarter. The half-year financial period did not include items affecting the comparability. The reporting period nor previous year did not include items affecting comparability. The Direct Sales Division will continue improving its profitability by concentrating on profitable product and service fields, efficient cost management, and by continuously optimizing operational efficiency. During the half-year period, Scandinavian Direct Sales renewed the operations of its sales channels to better correspond to the current market situation. Focusing on profitable product and service fields requires strong investments in the development of the chosen product and service ranges. Direct Sales is an expert service that requires knowledge of the customer, the customer s business and operating environment, and it emphasises the importance of personal contact. Wulff stands out from the competition for its locality and domesticity. The Direct Sales Division offers customers novelties and customer favourites, and a broad range of different ergonomics and first aid products and products improving work safety. Due to the aging workforce, Nordic companies are increasingly investing in ergonomics and first aid products for the workplace. Office work will continue to account for an ever-increasing part of all labour and that is why companies are also proactively investing in good workplace ergonomics. With good workplace ergonomics, it is possible to achieve significant savings due to diminution of sick leaves. The Direct Sales Division offers personal service to its clients where the product concept is always tailored together with the customers to meet their needs. Wulff is known for being the workplace of successful salespeople. An increasing number of executive leaders and company managers have a background in sales, and there is growing appreciation of sales skills in our society today. Successful recruiting has a significant effect on the performance of especially the Direct Sales Division. Wulff is looking for new talents to grow into sales experts - new sales talents are now being recruited for fall 2017 start-offs. Wulff s own introduction and training programs ensure that not only does every sales person get a comprehensive training and an exciting start to their career, but also further education on how to improve one s own expertise. FINANCING, INVESTMENTS AND FINANCIAL POSITION In January-June 2017 the cash flow from operating activities was EUR -0.9 million (EUR -0.1 million), and EUR -0.4 million (EUR 0.6 million) in the second quarter. In this industry, it is typical that the result and cash flow are generated in the last quarter. In January-June 2017 a dividend of EUR 0.7 million was paid to the owners of the parent company. In January-June 2016 a dividend of EUR 0.01 million was paid to minority shareholders of the Group and EUR 0.7 million to the owners of the parent company. In March 2017, the Group carried out a financial arrangement where the Group withdrew a new long-term loan of EUR 1.2 million and a loan of EUR 0.9 million was repaid. The new long-term loan has a repayment term almost six years longer compared to the repaid loan. In January-June 2017 long-term loans were repaid in total of EUR 1.3 million, and EUR 0.1 million in the second quarter. Short-term loans were withdrawn amounting to EUR 2.1 million in January-June 2017, and EUR 1.2 million in the second quarter. The cash flow of financing activities was EUR +1.4 million (EUR -1.4 million) in January-June 2017. The Group s cash balance increased by EUR 0.3 million in January-June 2017 (EUR -0.6 million). The Group s bank and cash funds totalled EUR 0.4 million in the beginning of the year and EUR 0.7 million at the end of the reporting period. At the end of June 2017, the Group s equity-to-assets ratio was 44.5 percentages (December 31, 2016: 50.5 %). Equity attributable to the equity holders of the parent company was EUR 1.62 per share (December 31, 2016: EUR 1.78).
SHARES AND SHARE CAPITAL s share is listed on NASDAQ OMX Helsinki in the Small Cap segment under the Industrial Goods and Services sector. The company s trading code is WUF1V. At the end of the reporting period, the share was valued at EUR 1.72 (EUR 1.59) and the market capitalization of the outstanding shares totalled EUR 11.2 million (EUR 10.4 million). In January-June 2017 no own shares were reacquired. At the end of June 2017, the Group held 79,000 (June 30, 2016: 79,000) own shares representing 1.2 percentage (1.2 %) of the total number and voting rights of Wulff shares. DECISIONS OF THE ANNUAL GENERAL MEETING AND BOARD OF DIRECTORS s Annual General Meeting was held Helsinki on Thursday April 6, 2017. The Annual General Meeting adopted the financial statements for the financial year 2016 and discharged the members of the Board of Directors and CEO from liability for the financial period 1.1.-31.12.2016. Dividend The Annual General meeting decided to pay a dividend of EUR 0.10 per share for the financial year 2016, amounting to EUR 0.7 million. The record date was April 10, 2017 and the payment date was April 19, 2017. Board of Directors The Annual General Meeting decided that the number of the board members is four. Johanna Marin, Ari Pikkarainen, Andreas Tallberg and Heikki Vienola were re-elected as members of the Board. The organising meeting of Wulff Group Plc s Board of Directors, held after the Annual General Meeting, decided that the Chairman of the Board is Heikki Vienola. The Annual General Meeting decided that the members of the Board of Directors will receive a monthly fee of EUR 1,250. Auditors BDO Oy, a company of Authorized Public Accountants, with Authorized Public Accountant Juha Selänne as the lead audit partner, was chosen as the auditor of. The reimbursements to the Auditors are paid on the basis of reasonable invoicing. Authorizing the Board of Directors to decide on the repurchase of the company s own shares The Annual General Meeting authorised the Board of Directors to resolve on the acquisition of maximum 300,000 own shares. The authorization is effective until April 30, 2018. Authorizing the Board of Directors to decide on a share issue and the special entitlement of the shares The Annual General Meeting authorised the Board to decide on the issue of new shares, disposal of treasury shares and/or the issue of special rights. The authorisation entitles the Board to issue a maximum of 1,300,000 shares, representing approximately 20% of the company s currently outstanding stock, based on a single decision or several decisions. The authorisation remains in force until April 30, 2018. PERSONNEL In January-June 2017 the Group s personnel totalled 201 (221) employees on average. At the end of June, the Group had 199 (216) employees of which 72 (80) persons were employed in Sweden, Norway or Denmark. The majority, 58 percentages, of the Group s personnel works in sales operations and 42 percentages of the employees work in sales support, logistics and administration. 51 percentages of the personnel are women and 49 percentages are men. RISKS AND UNCERTAINTIES IN THE NEAR FUTURE The demand for office supplies is strongly affected by the general economic development. Half of the Group s net sales come from other than euro-currency countries. Fluctuation of the currencies affect the Group s net result, however the effect of the fluctuation is expected to be moderate. EVENTS AFTER THE REPORTING PERIOD The Group has not had any significant events after the reporting period.
MARKET SITUATION AND FUTURE OUTLOOK Wulff is the most significant Nordic player in its field. Wulff s mission is to help its corporate customers to succeed in their own business by providing them with leading-edge products and services in a way best suitable to them. Wulff is prepared to carry out new strategic acquisitions and as a listed company, Wulff is in a good position to be a more active player than its competitors. The developing economic situation affects Wulff s business positively. Wulff s aim is to further improve the profitability of its operations. Wulff estimates that its 2017 comparable operating profit will increase. In the industry, it is typical that the result and cash flow are generated in the last quarter. WULFF GROUP PLC S FINANCIAL REPORTING will release the following financial reports in 2017: Interim Report, January-September 2017 Thursday November 2, 2017 In Vantaa on August 2, 2017 WULFF GROUP PLC BOARD OF DIRECTORS Further information: CEO Kimmo Laaksonen tel. 0300 870 414 or 050 469 3060 e-mail: kimmo.laaksonen@wulff.fi DISTRIBUTION NASDAQ OMX Helsinki Oy Key media www.wulff-group.com
HALF-YEAR FINANCIAL REPORT, TABLE PART 1.1. - 30.6.2017 The information presented in the report has not been audited. CONDENSED CONSOLIDATED STATEMENT OF II II I-II I-II I-IV PROFIT OR LOSS (IFRS) EUR 1000 2017 2016 2017 2016 2016 Net sales 13 530 14 595 28 862 30 085 59 304 Other operating income 38 192 77 309 437 Materials and services -9 005-9 026-19 124-19 420-38 781 Employee benefit expenses -3 133-3 376-6 361-6 829-12 553 Other operating expenses -1 626-1 866-3 433-3 821-7 409 EBITDA -196 519 21 325 998 Depreciation and amortization -97-100 -194-218 -415 Operating profit/loss -293 419-174 106 583 Financial income 7 2 14 1 21 Financial expenses -82-103 -123-154 -253 Profit/Loss before taxes -368 318-283 -47 351 Income taxes -57-25 -85-12 -39 Net profit/loss for the period -425 293-367 -59 312 Attributable to: Equity holders of the parent company -395 280-345 -81 302 Non-controlling interest -30 12-22 22 11 Earnings per share for profit attributable to the equity holders of the parent company: Earnings per share, EUR -0,06 0,04-0,05-0,01 0,05 (diluted = non-diluted) CONDENSED CONSOLIDATED STATEMENT OF OCI II II I-II I-II I-IV EUR 1000 2017 2016 2017 2016 2016 Net profit/loss for the period -425 293-367 -59 312 Other comprehensive income which may be reclassified to profit or loss subsequently (net of tax) Change in translation differences -37-42 -34-25 -47 Fair value changes on available-for-sale investments -37-42 -34-25 -47 Total other comprehensive income -462 251-402 -84 265 Total comprehensive income for the period Total comprehensive income attributable to: Equity holders of the parent company -469 265-416 -82 265 Non-controlling interest 7-14 15-2 0
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) EUR 1000 June 30, 2017 ASSETS Non-current assets June 30, 2016 Dec 31, 2016 Goodwill 6 835 6 873 6 850 Other intangible assets 395 347 437 Property, plant and equipment 453 570 472 Non-current financial assets Interest-bearing financial assets 35 35 35 Non-interest-bearing financial assets 57 57 57 Deferred tax assets 1 166 1 252 1 243 Total non-current assets 8 940 9 135 9 093 Current assets Inventories 7 510 7 406 7 297 Current receivables Interest-bearing receivables 13 17 13 Non-interest-bearing receivables 9 396 8 945 8 609 Cash and cash equivalents 718 615 419 Total current assets 17 637 16 982 16 338 TOTAL ASSETS 26 577 26 117 25 432 EQUITY AND LIABILITIES Equity Equity attributable to the equity holders of the parent company: Share capital 2 650 2 650 2 650 Share premium fund 7 662 7 662 7 662 Invested unrestricted equity fund 223 223 223 Retained earnings 12 735 1 082 Non-controlling interest 452 481 485 Total equity 10 999 11 751 12 102 Non-current liabilities Interest-bearing liabilities 1 982 2 332 1 638 Deferred tax liabilities 46 37 45 Total non-current liabilities 2 028 2 369 1 683 Current liabilities Interest-bearing liabilities 2 870 1 235 1 196 Non-interest-bearing liabilities 10 680 10 762 10 450 Total current liabilities 13 550 11 997 11 646 TOTAL EQUITY AND LIABILITIES 26 577 26 117 25 432
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS) II II I-II I-II I-IV EUR 1000 2017 2016 2017 2016 2016 Cash flow from operating activities: Cash received from sales 13 592 13 977 28 076 30 730 60 371 Cash received from other operating income 39 46 79 105 242 Cash paid for operating expenses -13 882-13 404-28 913-30 872-59 834 Cash flow from operating activities before financial items and income taxes -251 619-759 -29 779 Interest paid -22 9-43 -58-112 Interest received 4 4 13 9 24 Income taxes paid -48-45 -70 16-12 Net cash flow from operating activities -317 587-858 -62 679 Cash flow from investing activities: Investments in intangible and tangible assets Proceeds from sales of intangible and tangible assets -30 0-135 -58-319 0 215 0 326 356 Sale of business 0 8 0 536 536 Proceeds from sale of other long-term investments 0 77 0 77 77 Repayments of loans receivable 0 0 0 1 6 Net cash flow from investing activities -30 301-135 883 656 Cash flow from financing activities: Dividends paid -653-744 -653-744 -742 Payment for the partial interest in a subsidiary that does not involve loss of control -48 0-48 0 8 Proceeds on disposal of partial interest in a subsidiary that does not involve loss of control 0 0 0 1 1 Repayments of finance lease liabilities -13-15 -31-29 -60 Withdrawals and repayments of short-term loans 1 241-386 2 120-234 -278 Withdrawals of long-term loans 0 0 1 200 0 0 Repayments of long-term loans -85-193 -1 271-416 -1 074 Net cash flow from financing activities 441-1 339 1 316-1 422-2 145 Change in cash and cash equivalents 95-460 323-610 -810 Cash and cash equivalents at the beginning of the period 642 1 060 419 1 201 1 201 Translation difference of cash -19 15-24 24 28 Cash and cash equivalents at the end of the period 718 615 718 615 419
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 1000 EUR Equity attributable to equity holders of the parent company Share capital Share premium fund Fund for invested non restricted equity Own shares Translation differences Retained earnings Total Noncontrolling interest TOTAL Equity on Jan 1, 2016 2 650 7 662 223-260 -400 2 128 12 002 577 12 579 Net profit / loss for the period -81-81 22-59 Other comprehensive income (net of taxes): Change in translation diff -1-1 -24-25 Comprehensive income (net of taxes) -1-81 -82-2 -84 Dividends paid -653-653 -91-744 Changes in NCI which lead to loss of control 4 4-4 0 Equity on June 30, 2016 2 650 7 662 223-260 -401 1 398 11 271 480 11 751 Equity on Jan 1, 2017 2 650 7 662 223-260 -436 1 781 11 619 483 12 102 Net profit / loss for the period -345-345 -22-367 Other comprehensive income (net of taxes): Change in translation diff -71-71 37-34 Comprehensive income (net of taxes) -71-345 -416 15-402 Dividends paid -653-653 0-653 Changes in NCI which did not lead to loss of control -48-48 Equity on June 30, 2017 2 650 7 662 223-260 -507 783 10 550 452 10 999
NOTES TO THE CONSOLIDATED HALF-YEAR FINANCIAL REPORT 1. BASIS OF PREPARATION This half-year financial report has been prepared in accordance with IAS 34 Interim Financial Reporting. The accounting principles used in the preparation of this report are consistent with those described in the 2016 IFRS Consolidated Financial Statements, with the exception of the changes to the IFRS standards effective and adopted as of 1 January 2017. The changes are described in the 2016 IFRS Consolidated Financial Statements. The IFRS principles require the management to make estimates and assumptions when preparing half-year financial reports. Although these estimates and assumptions are based on the management s best knowledge of today, the final outcome may differ from the estimated values presented in the financial statements. All figures are presented as thousands of euros and have been rounded to the nearest thousand euros. 2. CHANGES IN GROUP STRUCTURE Changes in the shares of minority shareholders In April 2017, the Group acquired 2 % of share capital of S Supplies Holding AB, and now the Group owns 87 % of the company s shares. The share price was EUR 48 thousand. S Supplies Holding AB s net assets were EUR 2.399 thousand (without goodwill). As a result of the acquisition, the non-controlling interest dereased by EUR 48 thousand.
3. SEGMENT INFORMATION II II I-II I-II I-IV EUR 1000 2017 2016 2017 2016 2016 Net sales by operating segments Contract Customers Division 11 332 12 130 24 160 25 173 49 944 Direct Sales Division 2 211 2 501 4 730 4 946 9 425 Group Services 81 95 161 215 370 Intersegment eliminations -94-131 -189-249 -434 TOTAL NET SALES 13 530 14 595 28 862 30 085 59 304 Operating profit/loss by segments Contract Customers Division -70 472-58 114 752 Direct Sales Division -54 22 144 181 250 Group Services and non-allocated items -173-76 -260-189 -419 TOTAL OPERATING PROFIT/LOSS -297 419-174 106 583
4. KEY FIGURES II II I-II I-II I-IV EUR 1000 2017 2016 2017 2016 2016 Net sales 13 530 14 595 28 862 30 085 59 304 Change in net sales, % -7,3 % -10,3 % -4,1 % -15,1 % -13,8 % EBITDA -196 519 21 325 998 EBITDA margin, % -1,4 % 3,6 % 0,1 % 1,1 % 1,7 % Operating profit/loss -293 419-174 106 583 Operating profit/loss margin, % -2,2 % 2,9 % -0,6 % 0,4 % 1,0 % Profit/Loss before taxes -368 318-283 -47 351 Profit/Loss before taxes margin, % -2,7 % 2,2 % -1,0 % -0,2 % 0,6 % Net profit/loss for the period attributable to equity holders of the parent company -395 280-345 -81 302 Net profit/loss for the period, % -2,9 % 1,9 % -1,2 % -0,3 % 0,5 % Earnings per share, EUR (diluted = non-diluted) -0,06 0,04-0,05-0,01 0,05 Return on equity (ROE), % -3,7 % 2,4 % -3,2 % -0,5 % 2,5 % Return on investment (ROI), % -2,2 % 3,1 % -1,6 % 0,1 % 2,9 % Equity-to-assets ratio at the end of period, % 44,5 % 48,6 % 44,5 % 48,6 % 50,5 % Debt-to-equity ratio at the end of period 37,2 % 24,7 % 37,2 % 24,7 % 19,6 % Equity per share at the end of period, EUR * 1,62 1,73 1,62 1,73 1,78 Net cash flow from operating activities -541 587-858 -62 679 Investments in non-current assets 179 0 317 26 319 Investments in non-current assets, % of net sales 1,3 % 0,0 % 1,1 % 0,1 % 0,5 % Treasury shares held by the Group at the end of period 79 000 79 000 79 000 79 000 79 000 Treasury shares, % of total share capital and votes 1,2 % 1,2 % 1,2 % 1,2 % 1,2 % Number of total issued shares at the end of period 6 607 628 6 607 628 6 607 628 6 607 628 6 607 628 Personnel on average during the period 197 217 201 221 214 Personnel at the end of period 199 216 199 216 203 * Equity attributable to the equity holders of the parent company / Number of shares excluding the acquired own shares QUARTERLY KEY FIGURES EUR 1000 II I IV III II I IV III 2017 2017 2016 2016 2016 2016 2015 2015 Net sales 13 530 15 332 15 811 13 408 14 595 15 490 18 585 14 796 EBITDA -196 217 308 365 519-194 807 579 Operating profit/loss -293 119 207 270 419-312 521 429 Profit/Loss before taxes -368 85 198 200 318-365 558 272 Net profit/loss for the period attributable to the equity holders of the parent company Earnings per share, EUR (diluted = nondiluted) -395 50 231 158 280-362 520 172-0,06 0,01 0,04 0,02 0,04-0,06 0,08 0,03
5. RELATED PARTY TRANSACTIONS II II I-II I-II I-IV EUR 1000 2017 2016 2017 2016 2016 Sales to related parties 28 12 60 22 44 Purchases from related parties 19 23 37 50 88 The terms concerning related party transactions correspond to the stipulations that are adhered to in independent party transactions. 6. CONTINGENT LIABILITIES AND OTHER COMMITMENTS EUR 1000 June 30, 2017 June 30, 2016 Dec 31, 2016 Mortgages and guarantees on own behalf Business mortgage for the Group's loan liabilities Business mortgage, free 8 050 10 850 10 850 3 700 900 900 Subsidiary shares pledged as security for group companies' liabilities Pledges and guarantees given for the group companies' off-balance sheet commitments 7 001 6 953 6 953 143 147 150 Minimum future operating lease payments 2 503 3 306 3 048
Calculation of Key Figures Return on equity (ROE), % Net profit/loss for the period (total including the non-controlling interest of the result) Shareholders equity total on average during the period (including non-controlling interest) Return on investment (ROI), % (Profit before taxes + Interest expenses) x 100 Balance sheet total - Non-interest-bearing liabilities on average during the period Equity ratio, % (Shareholders equity + Non-controlling interest at the end of the period) x 100 Balance sheet total - Advances received at the end of the period Net interest-bearing debt Interest-bearing liabilities - Interest-bearing receivables - Cash and cash equivalents Gearing, % Net interest-bearing debt x 100 Shareholders equity + Non-controlling interest at the end of the period Earnings per share (EPS), EUR Net profit attributable to the equity holders of the parent company Share issue adjusted number of outstanding shares on average during the period Equity per share, EUR Equity attributable to equity holders of the parent company Share issue-adjusted number of outstanding shares at the end of period Dividend per share, EUR Dividend for the financial period Share issue-adjusted number of outstanding shares at the end of period Payout ratio, % (Dividend per share) x 100 Earnings per share (EPS) Earnings before taxes, depreciation and amortization (EBITDA) per share, EUR Earnings before taxes, depreciation and amortization (EBITDA) Share issue adjusted number of outstanding shares on average during the period Market value of outstanding shares Share issue-adjusted number of outstanding shares at the end of period x Closing share price at the end of period