Quarterly Financial Report 2010 - Logwin Logistics...1 Quarterly Financial Report 2010 Overview...
Transcript of Quarterly Financial Report 2010 - Logwin Logistics...1 Quarterly Financial Report 2010 Overview...
Quarterly Financial Report 2010Logwin AG
Key Figures January 1 – March 31, 2010
in thousand € 3 Months
Group 2010 2009 (restated)
∆ in %
Sales 320,709 283,102 13.3
Gross Profit 27,107 26,863 0.9
Margin 8.5 % 9.5 %
Operating Income (EBIT) 7,426 4,981 49.1
Margin 2.3 % 1.8 %
Earnings of Continuing Business operations 1,851 –9
Margin 0.6 % 0.0 %
Net Result 151 –6,277 –
Attributable to Shareholders of Logwin AG 103 –6,246
Earnings per Share (in 1) 0.00 –0.06
Operating Cash Flow* 6,837 4,624
Net Cash Flow* 5,613 2,347
in thousand € 3 Months
Business Segments 2010 2009 (restated)
∆ in %
SolutionsSales 175,125 178,914 –2.1
Operating Result (EBIT) 4,351 2,229 –
Margin 2.5 % 1.2 %
Air + OceanSales 145,536 105,498 38.0
Operating Result (EBIT) 4,835 4,010 20.6
Margin 3.3 % 3.8 %
in thousand € Mar. 31, 2010 Dec. 31, 2009 ∆ in %
Equity Ratio 21.6 % 21.0 %
Net Financial Debt* 105,520 98,179 7.5
Number of Employees* 5,661 5,510 2.7
*Continuing Business Operations
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Quarterly Financial Report 2010
Overview
Overview
Focus on Solutions and Air + Ocean The Logwin Group has abandoned its business segment Road + Rail and is now focusing on themultifaceted development opportunities in its business segments Solutions and Air + Ocean.
Sales and earnings In its continuing business operations, the Logwin Group generated sales of 320.7 million euros inthe first quarter. This represents an increase of 13.3 % in comparison with last year. Besides thepartially increasing demand for logistics services and slightly more dynamic volume growth, theconsiderable increases in freight rates since the middle of 2009 made a significant contribution togrowth in sales. The operating income (EBIT) amounted to 7.4 million euros compared to 5.0 millioneuros in the same quarter last year.
Cash flowAt 6.8 million euros, the operating cash flow of the continuing business operations of the LogwinGroup showed a positive development at the end of the reporting period. The growth in workingcapital is primarily due to the higher level of business activities compared with the very weak firstquarter last year.
Business segments The business segment Solutions generated sales of 175.1 million euros in the first three months of2010, approximately in line with those last year. Growth in volumes for General Cargo, automotiveand chemicals activities were pleasing compared with last year. Operating result (EBIT) at Solutionsalmost doubled compared with the previous year’s period to 4.4 million euros. As a result, the operating margin increased to 2.5 %.
The business segment Air + Ocean generated sales of 145.5 million euros in the reporting period.This sales growth of 38.0 % was primarily the result of a revival in the markets of the business unitsEurope Middle East and Far East Asia and of steadily increasing freight rates. Operating resultincreased to 4.8 million euros. The operating margin reached 3.3 %.
€in million
200
160
120
80
40
0
Sales (continuing business operations)
in million
5
4
3
2
1
0
Operating income (EBIT) (continuing business operations)
€
175.1
Solutions
145.5
Air + Ocean
4.4
Solutions
4.8
Air + Ocean
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Especially after devastating natural catastrophes, there is great need for immediate aid. Logwin as a company assumesits social responsibility and is helping people in distress. Logwin and its employees first of all do what they do best:shipping goods.
Social responsibility – Logwin helps
In the first months of 2010 Logwin supported both a large fund-raiser for the distressed people ofHaiti and the voluntary commitment of German pupils and their aid consignment to Tanzania.
Help for Haiti Logwin transported a helicopter and 36 pallets of aid supplies such as baby food,dressing material and other medical to Haiti after the earthquake, free of charge. A leading Germanfundraising organization had asked for support in loading and transporting the aid supplies. Thesmooth transportation into the disaster area was a matter of honour for Logwin. Logwin employeesin Heppenheim also contributed in helping Haiti and conducted a special project for a customer bynonpaid extra work. The donation from these nonpaid hours reached the victims of the earthquakein Haiti too.
Computer for Tanzania 10 computers, 10 laptops, technical accessories, other aid supplies and acomplete photovoltaic solar system for lasting, ecologically friendly electricity to power the PC areon the way from Germany to Tanzania, around 7,000 kilometres away. All of the devices were dona-ted by companies from the German state of Hesse. Students form the Odenwald District VocationalSchool Centre will be taking care of the installation of the equipment themselves. With their initia-tive, the students want to facilitate education of young people in Africa and thus provide them abetter outlook for the future. Logwin supports the involvement of these students and handles thecomplete transportation free of charge.
© Odenwald District Vocational School Centre
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Content
1 Overview
4 Group Interim Management Report
4 Stock
5 Corporate Bond and Rating
6 Sales and Earnings Development
12 Financial Position
14 Other Reporting
15 Outlook
16 Consolidated Interim Financial Statements
16 Consolidated Statement of Income
17 Consolidated Statement of Comprehensive Income
18 Consolidated Statement of Cash Flows
19 Consolidated Balance Sheet
20 Consolidated Statement of Changes in Shareholders’ Equity
21 Notes to Consolidated Interim Financial Statements
21 Basis of Accounting
21 Consolidation Scope
22 Segment Reporting
23 Discontinued business operations
23 Contingent Liabilities
24 External Review
24 Subsequent Events
Financial Calendar (Cover)
Imprint (Cover)
Quarterly Financial Report 2010
Logwin AG
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Stock
Developments in the stock markets The stock markets experienced ups and downs in the firstquarter of 2010. While the share indices started the year in slightly positive territory, they sufferedlosses from the end of January. The DAX recorded its lowest point for the year so far at 5,434points on February 5, 2010. However, share prices recovered during March, with the DAX passingthe 6,000 mark. The DAX closed the reporting period with a plus of more than 3 % compared withthe end of the same period last year. The SDAX reported an increase of just under 10 %.
in December 31, 2009 March 31, 2010
Logwin share vs. benchmark indices (rebased)
Logwin AG SDAX Prime Transport
140
130
120
110
100
90
80
in %
A F T E R S A L E S S E R V I C E S ■ A I R - A N D S E A T E X T A I N E R ■ A P P R O V A L M A N A G E M E N T ■ A S P H O S T I N G O F
SOLUTIONS FROM A TO Z
Our logistics solutions are as diverse as our customers requirements.
March 31, 2010 March 31, 2009
Closing price (Xetra) in euros 1.30 1.26
High / Low 52 weeks in euros 1.35 / 0.86 1.86 / 0.59
Total number of shares in units 111,474,987 111,474,987
Market capitalization in million euros 144.9 140.5
Earnings per share in euros 0.00 –0.06
Operating cash flow per share in euros –0.01 0.01
Key figures for the Logwin share
Frankfurt (Prime Standard), ISIN LU0106198319, WKN 931705
Group Interim Management Report
Stock | Corporate Bond and Rating
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Logwin share The Logwin share was subject to considerable fluctuations in the first month of thereporting period. From February onwards the share was no longer influenced by a partly negativeand volatile overall market environment and climbed steadily. At the end of the reporting period itreached 1.30 euros, representing an increase in the share price of around 33 % over the value atthe end of last year. Market capitalization increased as a result of the higher share price, reachingalmost 145 million euros at the end of the quarter compared to 110 million euros at the end of lastyear. A total of 1.2 million Logwin AG shares were traded on all German stock exchanges in thereporting period. This represented a turnover of 1.3 million euros.
Share ownership and shareholder structure The company has a stable shareholder structure.The majority shareholder remains DELTON AG, Bad Homburg (Germany), through its wholly ownedsubsidiary DELTON Vermögensverwaltung AG.
The members of the Board of Directors and the Executive Committee do not hold any shares oroptions to purchase shares in Logwin AG.
Corporate Bond and Rating
Development of the corporate bond First quarter development for the corporate bond wasincreasingly positive. Following a closing price, and at the same time lowest price ever, of 92.00 thebond registered continued growth in value, reaching a high of 100.50 on March 22, 2010. The bondclosed the quarter at 100.25.
Corporate rating The ratings for the Logwin Group and for the subordinate corporate bond remai-ned unchanged in the first quarter. Moody’s Investors Service place the Logwin Group in the “B3”rating category. The corporate rating by Standard & Poor’s is “B-”. Moody’s Investors Service ratedthe corporate bond in the category “Caa2” while Standard & Poor’s rated it at “CCC+”. Both ratingagencies judge the prospects for the corporate rating at “stable”.
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Abandonment of the business segment Road + Rail
The Logwin Group has sold almost all activities of the business segment Road + Rail in the second half of 2009 and in the first quarter of 2010 as a consequence of therealignment of its business model and the associated significant reduction in its landtransportation activities.
The contracts of sale and transfer with Augustin Network relating to the general cargonetwork operated in Austria by Logwin Road + Rail Austria GmbH and to land transpor-tation activities in Eastern Europe were signed on February 3, 2010. Transaction clo-sing was on March 31, 2010. This quarterly report therefore contains no assets and lia-bilities relating to these parts of the business. The purchase price payments have beenincluded in these statements.
Furthermore, contracts with the JCL Logistics Group relating to the sale of Road + Railactivities in Vorarlberg (Austria), Switzerland, Hungary, France, Italy and Spain weresigned on February 26, 2010. The sale of activities in France, Spain and Italy becameeffective the same day, while the closing for the other activities took place on April 15,2010 after approval by the relevant competition authorities. The assets and liabilities ofthe latter activities are therefore still included in this financial report under discontin -ued business operations.
The tank and silo activities of Logwin Road + Rail Deutschland GmbH were sold toGREIWING logistics for you GmbH with effect from April 1, 2010, as announced byLogwin AG on March 3. The related assets and liabilities are also still included in thecurrent report.
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Group Interim Management Report
Sales and Earnings Development
Sales and Earnings Development
Overall economic development A steady recovery in the global economy was noticeable in early2010. The global economic and financial crisis of the years 2008 and 2009, which severely affectedthe Logwin Group's economic development, is gradually being overcome. However, it is clear thatthe recovery in the individual economic regions is happening at different speeds. In the meantimeexports from Asia exceed their volume before the crisis, and the demand for imports in Africa andSouth America are not much below the level before the crisis. On the other hand, overall economiccapacity utilization in the industrial countries continues to be low. The recovery here has not yetstabilized and is to a large extent being sustained by the expansionary economic policies adopted in these countries. A lot of the economic recovery can thus be attributed to emerging markets.
The economic situation in Germany continues to be fragile. Following a clear upturn in productionin the summer of 2009 and a faltering recovery in the winter of 2009/2010, the German economyis once more experiencing a moderate upwards trend. However, since the main markets for Germanexports do not coincide with the current centers of growth in Asia and Latin America, the Germaneconomy cannot take full advantage of the growth in world trade.
There is also a noticeable slight recovery in the logistics and transportation business directly connected with macroeconomic developments. An increase in global imports and exports could beobserved compared with the weak first quarter of 2009. This is reflected for the logistics industry in increased transport volumes across all modes of transportation. It is assumed that volumes in air and sea freight in particular will grow in 2010. International air and sea freight transportation continues to be characterized by a surplus of capacity. The strategy employed so far of restrictingfreight space coupled with growth in international trade led to an additional increase in transportcosts also in the first quarter of 2010.
C A T A L O G U E M A N A G E M E N T ■ C E P ( C O U R I E R E X P R E S S P A R C E L ) S U P P L I E R M A N A G E M E N T ■ C E R T I F I E D S E C U R I T Y
Sales
283.1
320.7
09 10
in million €500
400
300
200
100
0
January 1 - March 31, in thousand 2
2010 2009(restated)
Change
Net sales 320,709 283,102 13.3 %
Cost of Sales –293,602 –256,239 14.6 %
Gross profit 27,107 26,863 0.9 %
Margin1 8.5 % 9.5 % –1.0 %
Operating income (EBIT) 7,426 4,981 49.1 %
Margin1 2.3 % 1.8 % 0.5 %
Net result 151 –6,277 –
Attributable to equity holders of Logwin AG 103 –6,246 –
EBITDA 10,873 8,608 26.3 %
EBITDA-Margin1 3.4 % 3.0 % 0.4 % 1 Change in percentage points
176.6 Germany
47.9 AustriaEastern Europe 18.6
Other 27.3
Sales by regions
Switzerland 7.2
Asia, Pacific region,Africa 43.1
in million €
8
Logwin Group The Logwin Group made a significant reduction in its land transportation activitiesin 2009 and the first quarter of 2010 and as a result abandoned its business segment Road + Rail.Those Road + Rail activities in Germany that affect major Solutions customers were already trans-ferred to Solutions in the middle of 2009, where they operate under the title of General Cargo. Theactivities that were abandoned or sold and the remaining operations of the relinquished businesssegment Road + Rail are reported as discontinued business operations in accordance with IFRS 5.The continuing business operations comprise the business segments Solutions and Air + Ocean aswell as general expenditures that cannot be attributed directly to the business segments.
In the first three months of 2010 the continuing business operations of the Logwin Group generatedsales of 320.7 million euros in a partially improved market environment. This represented an in creaseover the value for the previous year of 13.3 % (2009: 283.1 million euros). Besides to some extendincreasing customer demand for logistics services and slightly more dynamic volume growth, theconsiderable increase in freight rates since the middle of 2009 made a significant contribution tothis growth in sales. The latter also becomes apparent from closer look on the business segments.While sales at Solutions largely remained at the same level as the previous year, sales growth at Air + Ocean, which is more strongly affected by the level of freight rates, increased over the previousyear at a mid-range, double-digit rate.
As a result of sales, gross profit at 27.1 million euros was slightly above the figure for the previousyear of 26.9 million euros. The decrease in gross margin from 9.5 % to 8.5 % can be attributed tothe less dynamic increase in gross profit compared to sales growth. A principal reason for this,besides the continuing high competitive and cost pressures in the transportation and logisticsindustry reflected in customer demands for price reductions, is that continuing, drastically increased
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Sales and Earnings Development
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Operating income (EBIT)
5.0
7.4
09 10
in million €10
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6
4
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March 31, 2010 Dec. 31, 2009
Germany 3,108 2,975
Austria 490 513
Eastern Europe 581 525
Asia, Pacific region, Africa 1,007 1,007
Switzerland 136 141
Other 339 349
Total 5,661 5,510
Employees in the Logwin Group As of March 31, 2010, the continuing business operations of the Logwin Group employed 5,661 people. This represents an increase in the number of staff of 151compared with December 31, 2009.
Air + Ocean1,984
Holdings/SharedServiceCenter
306
Solutions3,371
freight rates could not always be passed on to customers immediately. The Logwin Group has beenable to counteract this development to some degree by continuing to pursue existing measuresaimed at increasing efficiency and initiating new ones in the reporting period. These have made itpossible for the group to slightly lower its own costs of sales despite increasing business volumes.Nevertheless, it is still difficult to reduce long-term, fixed-cost components such as depreciation aswell as rental and leasing obligations. Logwin will continue to attach great importance to identifyingand exploiting additional potential for cost cutting and process optimization also in the event ofsustained economic recovery.
The reduction in operating expenses of 2.6 million euros to 20.4 million euros (2009: 23.0 millioneuros) demonstrates the positive effects of strict cost management on the development of earningsof the Logwin Group. Selling costs decreased by 18.7 % and administrative costs by 7.8 % comparedwith the value for the previous year. The reduction in operating expenses was achieved through alarge number of individual measures taken in the business segments Solutions and Air + Ocean. Ina comparison with the previous year, optimized processes, leaner structures and in particular thereorganization of the business segment Solutions, which was completed at the end of the year, alsocontributed to lowering operating expenses. Depreciation and amortization included in the cost ofsales and operating expenses decreased from 3.6 million euros in the corresponding quarter of theprevious year to 3.4 million euros in the reporting period.
V E H I C L E S C L E A N I N G ■ C O N T A I N E R M A N A G E M E N T ■ C O N T I N O U S B E N C H M A R K I N G ■ C R O S S - D O C K I N G ■ C U S T O M S
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Operating result Solutions (EBIT)
2.2
4.4
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in million €5
4
3
2
1
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Sales Solutions
178.9 175.1
09 10
in million €200
160
120
80
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0
Operating income (EBIT) amounted to 7.4 million euros (2009: 5.0 million euros). This correspondsto an improvement of 49.1 % compared with the value for the previous year. The operating marginincreased accordingly by 0.5 % to 2.3 % in the reporting period (2009: 1.8 %). Despite the slightlylower gross margin and lower other income and expenses of 0.7 million euros (2009: 1.1 millioneuros) it was possible to achieve an improvement in operating income (EBIT) against a backgroundof a challenging market and competitive environment thanks to systematic cost-cutting measuresand realigned sales activities.
At -3.7 million euros, finance expenses were slightly below the level of the corresponding period ofthe previous year (2009: -3.8 million euros). Income tax expenses increased to -1.9 million euroslargely as a result of earnings (2009: -1.2 million euros).
The result of the discontinued business operations amounted to -1.7 million euros (2009: -6.3 millioneuros). This burdened the Logwin Group's net result for the first quarter of 2010, which was at 0.2 million euros (2009: -6.3 million euros).
Solutions With its integrated contract logistics and special network solutions for customers fromindustry and trade, the business segment Solutions achieved sales of 175.1 million euros in the firstthree months of 2010, which was more or less in line with the level of the previous year (2009:178.9 million euros). This figure includes sales of around 37 million euros from General Cargo acti-vities that were allocated to the now abandoned business segment Road + Rail until the middle of2009 (2009: approx. 29 million euros). With an overall stable sales performance, the various areasof the business segment showed uneven developments in the first quarter. General Cargo, auto mo -tive and chemicals activities in particular reported a more dynamic growth in volumes as a result ofimprovements in the economic environment. In contrast, volume growth in the specialist networksof Fashion and Media was more modest at the beginning of the year due to market conditions andthe weather. In the textile retail trade there was an increased focus on selling off stocks of wintergarments as a result of the severe and long winter in the main market of Germany and in individualforeign markets, leading to a delayed start of the spring season. Furthermore, developments in theGerman print market remained sluggish. All press categories again suffered falls in total circulationsold compared to the same quarter of the previous year.
C L E A R A N C E F O R I M P O R T A N D E X P O R T ■ D E B T C O L L E C T I O N / E N C A S H M E N T ■ D E S I G N A N D S E T - U P O F O N L I N E S H O P S ■
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Sales and Earnings Development
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Operating result Air + Ocean (EBIT)
4.0
4.8
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in million €5
4
3
2
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Sales Air + Ocean
105.5
145.5
09 10
in million €200
160
120
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The business segment Solutions succeeded in almost doubling its operating result (EBIT) in thereporting period to 4.4 million euros compared with the same period of the previous year (2009:2.2 million euros). As a result, the operating margin increased from 1.2 % in the previous yearperiod to 2.5 % in the first quarter of 2010. Besides realizing an accounting profit from the sale ofan Austrian location, the increased result can mainly be attributed to the positive effects on profita-bility arising from the systematic implementation of cost-cutting measures and process optimizationcarried out in the course of reorganizing the business segment. This was able to more than offsetthe negative effects of the continuing price-related pressure on margins and the sluggish growth involumes in some areas, in particular in the specialist networks.
Air + Ocean As an interface between the global growth markets and the Logwin Group’s core mar-kets in Europe, the business segment Air + Ocean provides its customers with intercontinental airand sea freight transportation. The business segment generated sales of 145.5 million euros in thereporting period (2009: 105.5 million euros). Growing customer demand due to greater economicactivity in the markets and the resultant increase in air and sea freight volumes particularly in thebusiness units Europe Middle East and Far East Asia coupled with the continued rise in freight ratessince the middle of 2009 led to a growth in sales of 38.0 % compared with the previous year.
Operating result (EBIT) in the first three months 2010 amounted to 4.8 million euros, which repre-sents an increase in earnings of more than 20.6 % (2009: 4.0 million euros).The operating margindecreased to 3.3 % in the reporting period (2009: 3.8 %). Invoicing of increases in freight rates pro-ved to be a particular challenge in the first quarter 2010. In the face of an extraordinarily difficultmarket environment, improved operating result once more underlines the successful positioning ofthe business segment Air + Ocean in the market and with its customers. This confirms the strategyof systematic network expansion of the air and sea freight business and of intensifying customerrelations. Increased earnings resulted from volume growth principally at the largest business unitsEurope Middle East and Far East Asia, whereas the performance of the other regions of South EastAsia, Africa and Americas largely remained stable at the same level of the previous year.
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January 1 - March 31, in thousand 2 2010 2009
Operating income (EBIT) 7,426 4,981
Depreciation and amortization 3,447 3,627
Earnings before interest, income taxes, depreciation and amortization (EBITDA) 10,873 8,608
Interest payments 2,436 –4,278
Income tax payments –543 –373
Changes in working capital, cash effective –4,711 1,689
Other reconciliations –1,218 –1,023
Operating cash flow of continuing business operations 6,837 4,624
Operating cash flow of discontinued business operations –8,134 –3,483
Capital expenditure –1,631 –2,043
Divestments 368 700
Acquisitions of subsidiaries - –887
Other cash flow from investing activities 39 47
Investing cash flow of continuing business operations –1,224 –2,277
Investing cash flow of discontinued business operations –1,448 –61
Net cash flow –3,969 –1,197
Financing cash flow of continuing business operations –771 –1,747
Financing cash flow of discontinued business operations –1,264 –744
Net cash flow = Operating cash flow - Cash flow from investing activities
Financial Position
Cash flow At 6.8 million euros, the operating cash flow of the continuing business segments ofthe Logwin Group developed positively at the end of the reporting period. The growth in workingcapital is primarily due to the higher volume of business compared with the very weak first quarterof the previous year. However, as a result of the pleasing developments in sales and earnings andalso thanks to a refund of tax prepayments, the previous year’s value f of 4.6 million euros wasexceeded significantly. Investing cash flow of the continuing business operations was at -1.1 millioneuros after the first three months (2009: -2.3 million euros). Last year, payments had to be madefor acquisition projects from previous years.
The separately reported cash flows for the discontinued business operations show the activities ofthe Road + Rail subsidiaries insofar as they were still part of the Logwin Group in the first threemonths of the year. The investing cash flow for the discontinued business operations does yet notinclude all purchase price payments as of the reporting date for reasons relating to the processingof the transactions.
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Net cash flow(continuing business operations)
2.3
5.6
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8
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Operating cash flow(continuing business operations)
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6.8
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Group Interim Management Report
Financial PositionGross financial debt
162.7 165.0
09 10
in million €200
160
120
80
40
0
Shareholders’ equity
128.2 129.4
09 10
in million €200
160
120
80
40
0
Balance sheet The decrease in total assets by 10.8 million euros is largely the result of the com-pleted sales of the general cargo network in Austria and Austrian land transportation activities toAugustin Network GmbH as well as of activities in France and subsidiaries in Italy and Spain to JCLLogistics. Cash and cash equivalents decreased by 5.1 million euros. There was a slight decline of0.5 million euros in a like-for-like comparison with March 31, 2009.
Due to the increased level of sales in the continuing business operations compared with the fourthquarter of the previous year, trade accounts receivable increased by 27.9 million euros to 161.2 mil-lion euros (Dec. 31, 2009: 133.3 million euros). Trade accounts payable also increased as a resultof higher business volumes to 141.8 million euros (Dec. 31, 2009: 123.3 million euros).
in thousand 2 March 31, 2010 Dec. 31, 2009 Change
Assets 598,398 609,207 –1.8 %
Thereof:
Cash and cash equivalents 59,506 64,563 –7.8 %
Trade accounts receivable 161,191 133,277 20.9 %
Assets of discontinued business operations 95,998 130,521 –26.5 %
Goodwill 153,973 153,788 0.1 %
Liabilities and shareholders’ equity 598,398 609,207 –1.8 %
Thereof:
Trade accounts payable 141,790 123,354 14.9 %
Short-term financial liabilities 7,639 5,916 29.1 %
Liabilities of discontinued business operations 84,171 128,168 –34.6 %
Long-term financial liabilities 29,431 28,980 1.6 %
Bonds payable 127,956 127,846 0.1 %
Shareholders’ equity (including minority interests) 129,375 128,223 0.9 %
Key figures to the balance sheet
Equity ratio1 21.6 % 21.0 % 0.6 %
Gross financial debt 165,026 162,742 1.4 %
Net financial debt 105,520 98,179 7.5 %1 Changes in percentage points
D O C U M E N T P R E P A R A T I O N ■ D O O R - T O - D O O R S E R V I C E ■ E A S T E R N E U R O P E A N T R A N S P O R T A T I O N ■ E -
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Liabilities from issuing the bond amounted to 128.0 million euros (Dec. 31, 2009: 127.8 millioneuros). Depreciation on the issuing costs of the bond over the eight-year term was responsible for this minor change.
Shareholders' equity amounted to 129.4 million euros (Dec. 31, 2009: 128.2 million euros). Theequity ratio was 21.6 % (2009: 21.0 %).
On March 31, 2010 the group's gross financial debt increased slightly compared to the previousyear’s end value and was at 165.0 million euros (Dec. 31, 2009: 162.7 million euros). Due to theseasonal higher working capital, net financial debt increased compared to the end of the previousyear to 105.5 million euros (Dec. 31, 2009: 98.2 million euros).
Other Reporting
Annual General Meeting and Extraordinary General Meeting The General Meetings of Logwin AG were held in Luxembourg on April 14, 2010. The individual agenda items can be viewedin the notification to all shareholders on the Logwin website at: www.logwin-logistics.com/investor-relations
Investigations by Austrian Federal Competition Authorities In late February 2010, theAustrian Federal Competition Authorities have filed proceedings against more than 40 Austrianlogistics companies, including three companies of the Logwin Group, with the Vienna HigherRegional Court (Oberlandesgericht), in its function as a cartel court, for alleged breaches ofAustrian and European competition law. The Federal Competition Authorities have requested thatfines be levied in an amount yet to be specified. According to information obtained so far, LogwinAG does not agree with the legal analysis made by the Austrian Federal Competition Authorities.Since it is impossible to make a reliable estimate of the potential financial impact, no provisionhas been made for the current financial report and no contingent liability has been estimated.
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Other Reporting | Outlook
Claim for payment of import sales tax Logwin Road + Rail Austria GmbH was served with aclaim from the Austrian customs authorities in April 2010 demanding payment of import sales taxof around 16 million euros in duties for customs clearance that the company had performed withjoint and several liability on behalf of customers in the period between December 2005 and March2006. The exemption from import sales tax granted at that time was now revoked since the consig-nee of the goods was allegedly a participant in a missing trader (carousel) fraud. The Company haslodged an appeal against the claim. Moreover, the Company has an insurer's preliminary confirma-tion of cover. No provision has been made for this in the current financial report and no contingentliability has been estimated.
Outlook
Despite gradual stabilization of the economic situation and the financial markets, business expecta-tions and economic forecasts in the short and medium term remain guarded. The Logwin Groupassumes that there will be a steady development in sales for the continuing business segmentsstarting from the comparatively low level of the business year 2009.
By focusing on the business segments Solution and Air + Ocean the Logwin Group has made itselfleaner and more efficient. This, together with the cost-saving measures that have been initiated,will have a positive effect on its earnings situation. The company controls focused on raising effi-ciency will allow the Logwin Group to profit from the emerging economic recovery.
M E N T A L M A N A G E M E N T ■ E R P - S Y S T E M C O M P E T E N C E ■ E S U P P L Y ® S U P P L I E R I N T E G R A T I O N . . .
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The accompanying notes are an integral part of these Consolidated Financial Statements.
Consolidated Statement of Income
Consolidated Interim Financial Statements
January 1 - March 31, in thousand 2
2010 2009(restated)
Net sales 320,709 283,102
Cost of sales –293,602 –256,239
Gross profit 27,107 26,863
Selling costs –5,676 –6,980
General and administrative costs –14,750 –15,993
Other income 2,232 3,496
Other expenses –1,487 –2,405
Earnings before interest and income taxes (EBIT) 7,426 4,981
Finance expenses, net –3,725 –3,780
Earnings of continuing business operations before income taxes 3,701 1,201
Income Taxes –1,850 –1,210
Earnings of continuing business operations after income taxes 1,851 –9
Earnings of discontinued business operations after income taxes –1,700 –6,268
therof loss from valuation of discontinued business operations – –
thereof income taxes –95 –660
Net result 151 –6,277
Attributable to:
Equity holders of Logwin AG 103 –6,246
Minority shareholders 48 –31
January 1 - March 31, in 2 2010 2009
Earnings per share – basic and fully diluted:
Income (loss) of continuing business operations attributable to the equity holders of Logwin AG 0.02 0.00
Income (loss) of discontinued business operations attributable to the equity holders of Logwin AG –0.02 –0.06
Income (loss) attributable to the equity holders of Logwin AG 0.00 –0.06
Weighted average number of shares outstanding 111,474,987 111,474,987
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Consolidated Interim Financial Statements
Consolidated Statement of Income | Consolidated Statement of Comprehensive Income
The accompanying notes are an integral part of these Consolidated Financial Statements.
Consolidated Statement of Comprehensive Income
January 1 - March 31, in thousand 2 2010 2009
Net result 151 –6,277
Unrealized profit (loss) on securities, available-for-sale 18 –6
Realized (profit) loss on securities, available-for-sale – –
Unrealized profit (loss) on commodity forwards 94 142
Neutral effects from change in fair value reserve 112 136
Actuarial gains and losses from pensions and other long-term personnel obligations 106 –
Effects from income taxes – –
Neutral effects from actuarial gains and losses from pensions and other long-term obligations 106 –
Unrealized profit (loss) on translation reserve 1,587 308
Neutral effects from change in translation reserve 1,587 308
Total result directly recognized in equity �1,805 444
Total net result 1,956 �–5,833
Attributable to:
Equity holders of Logwin AG 1,908 –5,802
Minority interest 48 –31
18
The accompanying notes are an integral part of these Consolidated Financial Statements.
Consolidated Statement of Cash Flows
January 1 - March 31, in thousand 2
2010 2009(restated)
Earnings before income taxes 3,701 1,201
Finance expenses, net 3,725 3,780
Earnings before income interest and taxes (EBIT) 7,426 4,981
Adjustments to reconcile net result to operating cash flow
Depreciation and amortization 3,447 3,627
Result from disposal of assets –14 –567
Other, net –1,204 –456
Income taxes paid 2,436 –4,278
Interest expenses paid –543 –373
Changes in working capital, cash effective
Change in trade accounts receivable and other assets, cash effective –29,769 5,559
Change in trade accounts payable and other liabilities, cash effective 25,159 –4,562
Change in inventory, cash effective –101 692
Operating cash flow of continuing business operations 6,837 4,624
Operating cash flow of discontinued business operations –8,134 –3,483
Capital expenditures –1,631 –2,043
Proceeds from disposal of non-current assets 368 700
Payments for acquisitions of subsidiaries, net of cash acquired – –887
Other changes in investing activities 39 –47
Investing cash flow of continuing business operations –1,244 –2,277
Investing cash flow of discontinued business operations –1,448 –61
Net cash flow –3,969 –1,197
Changes in short-term financial liabilities –235 –1,427
Repayment in Lease obligations –536 –311
Other changes in financing activities – –9
Financing cash flow of continuing business operations –771 –1,747
Financing cash flow of discontinued business operations –1,264 –744
Effects of exchange rate changes on cash 947 445
Changes in cash and cash equivalents –5,057 –3,243
Cash and cash equivalents at beginning of year 64,563 63,204
Change –5,057 –3,243
Cash and cash equivalents at end of period 59,506 59,961
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Consolidated Interim Financial Statements
Consolidated Statement of Cash Flows | Consolidated Balance Sheet
Assets in thousand 2 March 31, 2010 Dec. 31, 2009
Cash and cash equivalents 59,506 64,563
Trade accounts receivable 161,191 133,277
therof receivables from factoring 18,432 13,203
Inventories 2,691 2,537
Income tax receivables 3,343 6,320
Other current assets 21,446 16,111
Assets of discontinued business operations 95,998 130,521
Total current assets 344,175 353,329
Goodwill 153,973 153,788
Property, plant and equipment 72,883 73,908
thereof land and buildings 52,842 53,015
Intangible assets 9,774 10,508
thereof software 8,390 8,966
Financial assets 1,350 1,708
Deferred income taxes 15,257 15,195
Other non-current assets 716 771
Total non-current assets 254,223 255,878
Total assets 598,398 609,207
Consolidated Balance Sheet
Liabilities and Shareholders’ Equity in thousand 2 March 31, 2010 Dec. 31, 2009
Short-term financial liabilities 6,015 4,056
Trade accounts payable 141,790 123,354
Lease obligations, short-term 1,624 1,860
Tax liabilities 4,164 2,119
Other short-term liabilities 47,098 35,544
Other short-term provisions 6,376 7,206
Liabilities of discontinued business operations 84,171 128,618
Total current liabilities 291,238 302,757
Bonds payable 127,956 127,846
Long-term financial liabilities 7,160 6,627
Lease obligations, long-term 22,271 22,353
Retirement and other employee-related obligations 17,508 17,729
Deferred income taxes 1,217 2,267
Other long-term liabilities 1,658 1,390
Other long-term provisions 15 15
Total non-current liabilities 177,785 178,227
Total shareholders’ equity 129,375 128,223
Total liabilities and shareholders’ equity 598,398 609,207
The accompanying notes are an integral part of these Consolidated Financial Statements.
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in thousand 2
Ordinary shares- voting,
no-par value
Additionalpaid-in capital
Retained earnings and
other reserves
Result directlyrecongnized
in equity
Total groupequity
Minority interest
Total shareholders’
equity
January 1, 2009 139,344 174,002 –97,860 –6,173 209,313 3,032 212,345
Net result –6,246 –6,246 –31 –6,277
Result directly recognized in equity, net of tax
Translation reserve 308 308 308
Fair value reserve 136 136 136
Acturial gains and losses from pensions
Total net result –6,246 444 –5,802 –31 –5,833
Changes in translation reserve of foreign entities –216 216 – –
Acquisition of minority interests (outstanding)
Neutral effects from minority interests (outstanding) –9 –9
March 31, 2009 139,344 174,002 –104,322 –5,513 203,511 2,992 206,503
January 1, 2010 139,344 156,047 –165,754 –3,305 126,332 1,891 128,223
Net result 103 103 48 151
Result directly recognized in equity, net of tax
Translation reserve 1,587 1,587 1,587
Fair value reserve 112 112 112
Acturial gains and losses from pensions 106 106 106
Total net result 103 1,805 1,908 48 1,956
Other –819 15 –804 –804
March 31, 2010 139,344 156,047 –166,470 –1,485 127,436 1,939 129,375
Consolidated Statement of Changes in Shareholders’ Equity
Capital and reserves attributable to the equity holders of Logwin AG
The accompanying notes are an integral part of these Consolidated Financial Statements.
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Consolidated Interim Financial Statements
Consolidated Statement of Changes in Shareholders’ Equity | Notes to Consolidated Interim Financial Statements
1 Basis of Accounting
2 Consolidation Scope
As a listed company Logwin AG is required to prepare an interim reporting. These consoli-dated interim financial statements are prepared according to the International FinancialReporting Standards (IFRS) as adopted by the European Union and are in accordancewith these standards. In particular, the regulations of IAS 34 on interim financialreporting were applied.
The accounting policies as well as disclosures are based on the Consolidated FinancialStatement of Logwin AG as of December 31, 2009.
In addition to Logwin AG as the parent company, the scope of fully consolidated companiesincludes four domestic and 88 foreign companies as of March 31, 2010 (as of December31, 2009: four domestic and 100 foreign companies).
The consolidated entities including Logwin AG have developed as follows:
The disposal of 16 companies was a result of the planned initial consolidation in the course of the sale of the general cargo network in Austria and the Austrian land trans -portation activities to Augustin Network GmbH, and the sale of activities in France as well as subsidiaries in Italy and Spain to JCL Logistics.
Under the equity method four companies were accounted four. Not included are 19 sub -sidiaries either dormant or generating a negligible volume of business. Their influence onthe group’s assets, liabilities, financial position and earnings is immaterial.
Notes to Consolidated Interim Financial Statements as of March 31, 2010
Dec. 31, 2009 Additions Disposals March 31, 2010
Luxembourg 5 – – 5
Abroad 100 4 16 88
Total 105 4 16 93
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3 Segment Reporting
January 1 - March 31, 2009 in thousand 2 Solutions Air + Ocean Other Consolidation Group
External sales 177,599 104,444 1,059 – 283,102
Intersegment sales 1,315 1,054 354 –2,723 –
Net sales 178,914 105,498 1,413 –2,723 283,102
Operating income (EBIT) 2,229 4,010 –1,258 – 4,981
Finance expenses, net –3,780
Income (loss) before income taxes* 1,201
The classification of segments is made according to the business segments of the LogwinGroup. The segment structure reflects the current organizational and managementstructure of the Logwin Group. This means that reporting is in line with the requirementsof IFRS 8.
Transactions between the segments are measured at “arm’s length”, similar to transac-tions with third parties. The information about the business segments is reported afterconsolidation of the intersegment transactions. Transactions between the segments havebeen eliminated in the column “Consolidation”.
The result of each segment is measured by management based on operating income.This operating income is defined as EBIT before special items such as impairment onlong-lived assets or goodwill and restructuring costs, as long as they have a relevantimpact on the financial condition and results of operations. As far as possible, the gene-ral administrative expenses of the holding companies have been allocated to the businesssegment sin line with the principle of causality.
For reasons of comparability the previous year’s result of the business segments and hol-ding companies is adjusted in accordance with IFRS 8.
The tables below set forth segment information of the business segments for the periodsended March 31, 2010 and 2009:
January 1 - March 31, 2010 in thousand 2 Solutions Air + Ocean Other Consolidation Group
External sales 174,025 144,631 2,053 – 320,709
Intersegment sales 1,100 905 1,010 –3,015 –
Net sales 175,125 145,536 3,063 –3,015 320,709
Operating income (EBIT) 4,351 4,835 –1,760 – 7,426
Finance expenses, net –3,725
Income (loss) before income taxes* 3,701
* continuing business operations
Assets and liabilities of discontinued business operations as of March 31, 2010 were asfollows:
The change in the balance sheet item results primarily from planned deconsolidation inaccordance with the dates of transfer (so-called closing) contractually determined in therelevant agreements. We would refer you to note 2 "Consolidation scope" concerning thedeconsolidated companies.
In the first three months of 2009 there were no material changes in contingent liabilities inrespect of bank and other guarantees, letters of comfort, assessments and other matters arising in the ordinary course of business.
At the end of February 2010 the Austrian Federal Competition Authorities submitted acase to the Vienna Higher Regional court (Oberlandesgericht) against more than 40Austrian logistics companies, including three companies belonging to the Logwin Group,for alleged infringements of Austrian and European antitrust legislation. The FederalCompetition Authorities have applied for fines to be imposed in an unspecified amount.Since it is impossible to make a reliable estimate of the potential financial impact on theinterim consolidated financial statements, no provision has been made for this and no con-tingent liability could be estimated.
Logwin Road + Rail Austria GmbH was served with a claim from the Austrian customs authorities in April 2010 demanding payment of import sales tax of around 16 million eurosin duties for customs clearance that the company had performed with joint and several liability on behalf of customers in the period between December 2005 and March 2006.The exemption from import sales tax granted at that time was now revoked since the consignee of the goods was allegedly a participant in a missing trader (carousel) fraud. The Company has lodged an appeal against the claim. Moreover, the Company has an insurer's preliminary confirmation of cover. No provision has been made for this in the current financial report and no contingent liability has been estimated.
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Consolidated Interim Financial Statements
Notes to Consolidated Interim Financial Statements
in thousand 2 Mar. 31, 2010 Dec. 31, 2009
Property, plant and equipment 44,601 51,880
Trade accounts receivable 35,646 66,754
Miscellaneous 15,751 11,887
Assets of discontinued business operations 95,998 130,521
Trade accounts payable 31,635 62,085
Financial liabilities 23,987 30,207
Retirement and other employee-related oblogations 8,133 12,162
Miscellaneous 20,416 24,164
Liabilities of discontinued business operations 84,171 128,618
4 Discontinued business operations
5 Contingent Liabilities
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6 External Review
7 Subsequent Events
The consolidated interim financial statements were neither audited according to articles256 and 340 of the Luxembourg law dated August 10, 1915 nor limited reviewed by anauditor.
The closing for the transactions with JCL Logistics and GREIWIG Logistics for you GmbH tookplace after March 31, 2010 and before the adoption of the quarterly financial statements bythe Audit Committee.
Imprint
PublisherLogwin AG | 5, an de Laengten | 6776 Grevenmacher | Luxembourg
ResponsiblePublic Relations
This report is available in both German and English and can be downloaded from our website www.logwin-logistics.com.
Further copies of the report and additional information can be obtained from us free ofcharge.
Telephone: +352 719690-1112 | Fax: +352 719690-1359 | [email protected]
Dates
August 4, 2010Publication of Half-Year Financial Report 2010
November 3, 2010Publication of Nine-Month Financial Report 2010
April 13, 2011Annual General Meeting
Contact
Public RelationsMara HanckerPhone: +352 719690-1353Telefax: +352 [email protected]
Investor Relations Peer BrauerPhone: +352 719690-1112Telefax: +352 [email protected]
Logwin AG | ZIR Potaschberg | 5, an de Laengten | 6776 Grevenmacher | Luxembourg