Tecnomen Lifetree Corporation Interim Report 1-9/2009 · 5 29.10.2009 Interim Report 1-9/2009...
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Tecnomen Lifetree Corporation Interim Report 1-9/2009 29.10.2009 Eero Mertano President and CEO
Transcript of Tecnomen Lifetree Corporation Interim Report 1-9/2009 · 5 29.10.2009 Interim Report 1-9/2009...
Tecnomen Lifetree Corporation Interim Report 1-9/2009
29.10.2009
Eero Mertano
President and CEO
29.10.2009 Interim Report 1-9/20092
Tecnotree HighlightsLifetree consolidated from 6 May 2009
M€ 1-9/2009 7-9/2009
Net sales 39.7 (55.5) 13.2 (18.2)
Ebit (incl. 1.0 M€ one-time costs in Q3 2009) -6.3 (6.5) -3.0 (3.3)
Net result -8.9 (5.3) -4.3 (3.1)
Order intake 45.3 (69.3) 6.9 (10.3)
Order book 15.2 (17.2)
Cash flow after investments (w/o
net payment of Lifetree acquisition)
-0.8 (11.9) -1.7 (9.8)
Net cash flow -20.7 (7.8) -2.1 (9.8)
Cash 30.5 (25.2)
Equity ratio 68.8 (83.9%)
Net gearing -13.7 (-31.8%)
Improvements for 2010
• Tecnotree is implementing actions resulting in annual cost savings of over 10 M€
– Reduction in subcontracting work and personnel in some locations
– These savings will be effective from the beginning of 2010
• We have a much wider product and solution portfolio than before, and more resources
• Our customer base has been extended in emerging economies with strong organic market growth
• These actions considerably improve our efficiency and competitiveness
Tecnotree Business Units
• Net sales were 15.8 M€ (29.2)
• Sales came mainly from Next Generation Messaging products
– NGM deliveries for new customers in Europe and Africa
– NGM expansions in Africa and Latin America
– Telco Server - based EAIP expansion in Europe
• Steady maintenance revenues
• Net sales were 24.0 M€ (26.3)
• Demand has remained strong in Middle East and Africa and moderate in Latin America
• Steady maintenance contract income
• Good project completion and cash flow levels
VAS BSS/OSS
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Consolidated Income StatementLifetree consolidated from 6 May 2009
EUR Million 7-9/2009 7-9/2008 Change %
Net sales 13.2 18.2 -27.4
Other operating income 0.2 0.0
Materials and services -2.3 -4.1 -43.9
Employee benefit expenses -7.3 -5.1 42.7
Other operating expenses -5.1 -4.3 19.2
Depreciation -1.8 -1.4 28.0
Operating result
% of net sales
-3.0
-23.0
3.3
18.2
Financial income and expenses -0.5 0.9
Result after financial income and expenses
-3.5 4.2
Income taxes -0.8 -1.1 -31.3
Result for the period -4.3 3.1
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Consolidated Income StatementLifetree consolidated from 6 May 2009
EUR Million 1-9/2009 1-9/2008 Change %
Net sales 39.7 55.5 -28.4
Other operating income 0.3 0.0
Materials and services -7.7 -13.0 -40.6
Employee benefit expenses -19.0 -17.1 11.7
Other operating expenses -14.6 -14.8 -1.7
Depreciation -4.9 -4.1 19.0
Operating result
% of net sales
-6.3
-15.7
6.5
11.8
Financial income and expenses -0.4 1.1
Result after financial income and expenses
-6.7 7.7
Income taxes -2.2 -2.3 -6.6
Result for the period -8.9 5.3
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Consolidated Income Statement(Pro forma, Tecnotree India included Jul-Sep of both years)
EUR Million 7-9/2009 7-9/2008 Change %
Net sales 13.2 20.9 -36.9
Other operating income 0.2 0.1 84.5
Materials and services -2.3 -4.7 -51.5
Employee benefit expenses -7.3 -6.0 20.7
Other operating expenses -5.1 -5.1 0.9
Depreciation -1.8 -1.5 22.3
Operating result
% of net sales
-3.0
-23.0
3.8
18.0
Financial income and expenses -0.5 0.9
Result after financial income and expenses
-3.5 4.7
Income taxes -0.8 -1.1 -32.1
Result for the period -4.3 3.6
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Consolidated Income Statement(Pro forma, Tecnotree India included Jan-Sep of both years)
EUR Million 1-9/2009 1-9/2008 Change %
Net sales 44.7 65.3 -31.5
Other operating income 0.4 0.6 -32.7
Materials and services -9.2 -15.0 -38.7
Employee benefit expenses -21.0 -19.7 6.3
Other operating expenses -15.9 -17.0 -6.1
Depreciation -5.1 -4.3 18.6
Operating result
% of net sales
-6.1
-13.7
9.9
15.1
Financial income and expenses -0.3 1.3
Result after financial income and expenses
-6.4 11.1
Income taxes -2.2 -2.4 -7.5
Result for the period -8.6 8.8
29.10.2009 Interim Report 1-9/200999
Sales and Orders by Quarter
Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09
Sales 16,9 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2
OBL 18,5 15,0 15,9 20,5 17,1 17,5 16,8 25,1 17,2 9,7 11,7 21,5 15,2
Order intake 19,4 16,6 11,9 25,4 15,7 19,6 14,5 30,5 10,3 14,2 13,5 24,8 6,9
0
5
10
15
20
25
30
35
M€
Sales OBL Order intake 4 per. Mov. Avg. (Sales) 4 per. Mov. Avg. (OBL) 4 per. Mov. Avg. (Order intake)
29.10.2009 Interim Report 1-9/20091010
Net Sales by Business UnitVAS 40 % (53 %), BSS/OSS 60 % (47 %) of Net Sales
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
Act 1-9/2008 29,2 26,3
Act 1-9/2009 15,8 24,0
VAS BSS/OSS
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Sales by Business UnitVAS
Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09
Tecnotree Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2
VAS Sales 12,7 7,9 10,1 10,5 9,9 12,4 10,9 5,9 11,2 4,9 6,1 4,8
0
5
10
15
20
25
4 per. Mov. Avg. (VAS …
M€
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Sales by Business UnitBSS/OSS
Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09
Tecnotree Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2
BSS/OSS Sales 7,4 3,1 10,8 8,6 9,3 2,8 11,2 12,3 10,5 6,6 8,9 8,4
0
5
10
15
20
25
4 per. Mov. Avg. (BSS/OSS Sales)
M€
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Net Sales by AreaAmericas 43,5%(53,5%), EMEA 51,6%(33,9%), APAC 12,6% (16,1%)
0
5
10
15
20
25
30
35
1-9/2008 29,7 18,9 7,0
1-9/2009 17,3 20,5 2,0
Americas EMEA APAC
Total change -28%M€
-42% +8,5%
-71%
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Sales by AreaAmericas
Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09
Tecnotree Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2
Americas 10,1 5,0 11,0 9,5 12,2 3,9 12,0 13,7 11,9 7,0 6,9 3,4
0
5
10
15
20
25
M€
4 per. Mov. Avg. …
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Sales by AreaEMEA
Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09
Tecnotree Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2
EMEA 8,5 5,8 7,1 8,9 4,9 7,7 7,8 3,4 8,7 3,8 7,4 9,3
0
5
10
15
20
25
4 per. Mov. Avg. (EMEA)
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Sales by AreaAPAC
Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09
Tecnotree Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2
APAC 1,4 0,3 2,7 0,7 2,0 3,6 2,4 1,0 1,1 0,8 0,7 0,5
0
5
10
15
20
25
M€
4 per. Mov. Avg. (APAC)
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Sales Distribution
0
5
10
15
2 0
2 5
M€
T ecnot r ee Sal es 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2
Ser vi ces 2,1 3,2 3,9 2,9 5,0 3,8 4,8 4,5 5,5 3,9 6,3 6,8
New Customer s 2,1 0,0 3,5 0,7 2,9 0,0 1,6 0,2 0,5 1,0 0,8 1,2
Exi st i ng Customer s 15,8 7,8 13,4 15,5 11,3 11,4 15,8 13,5 15,7 6,6 7,9 5,2
Q4/ 06 Q1/ 07 Q2/ 07 Q3/ 07 Q4/ 07 Q1/ 08 Q2/ 08 Q3/ 08 Q4/ 08 Q1/ 09 Q2/ 09 Q3/ 09
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Orderbook by Product Line
0
2
4
6
8
10
12
VAS 9,6 11,1 10,3 8 6,5
BSS/OSS 9,4 7,4 6,8 9,1 8,8
Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009
M€
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Number of Personnel
374 352 347 352 355 365 359 354 354 350 352 332
510468
0
100
200
300
400
500
600
700
800
900
Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09
Rest of the Group India
6,0
Employee Benefit Costs (excluding one-time costs) M€
6,1 5,4 5,1 6,7 5,5 6,4 5,1 6,9 5,6
6,2 6,3
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Materials and Services
0
5
10
15
20
25
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2
Materials and Services 5,4 1,6 5,4 3,6 4,6 4,3 4,5 4,1 3,8 2,0 3,4 2,3
% 26,9% 14,5% 26,0% 18,7% 24,1% 28,7% 20,4% 22,5 % 17,3 % 17,1 % 22,7 % 17,4 %
Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09
M€
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Employee Benefits
Q4
/06Q1
/07Q2
/07Q3
/07Q4
/07Q1
/08Q2
/08Q3
/08Q4
/08Q1
/09Q2
/09Q3
/09
Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2
Employee benefits 7,0 6,1 5,4 5,1 6,7 5,5 6,4 5,1 6,9 5,6 6,2 7,3
% 34,8 55,5 26,0 26,7 34,9 36,4 28,9 28,1 31,9 48,5 41,1 55,3
0 %
10 %
20 %
30 %
40 %
50 %
60 %
0
5
10
15
20
25
Sales Employee benefits % 4 per. Mov. Avg. (%)
M€
29.10.2009 Interim Report 1-9/20092222
Other Operating Expenses
0
5
10
15
20
25
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
40 %
45 %
Sales Other Opex % 4 per. Mov. Avg. (%)
Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2
Other Opex 6,2 4,3 5,3 4,2 4,6 4,3 6,2 4,3 4,6 4,2 5,2 5,1
% 30,8 % 39,1 % 25,5% 22,0% 24,1% 28,5% 28,2% 23,5 % 21,0 % 36,8 % 34,9 % 38,7 %
Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09
M€
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Consolidated Balance Sheet
EUR Million 30.9.2009 30.9.2008 Change %
Non-current assets
Fixed assets
Consolidated goodwill
Other non-current assets
31.7
18.8
2.0
26.3
0.7
0.5
20.3
Current assets
Inventories
Trade receivables
Other receivables
Investments
Cash and cash equivalents
1.5
18.0
18.2
0.8
30.5
1.5
14.1
26.1
-
25.2
5.2
27.6
-30.3
21.2
Total assets 121.6 94.3 28.9
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Assets by Quarter
0
20
40
60
80
100
120
140
Cash 20,4 7,3 6,3 9,2 17,5 11,8 15,5 25,2 51,0 51,5 32,8 30,5
Investments 1,6 0,8
Other rec. (mainly WIP) 19,7 19,8 23,6 34,4 24,8 23,6 27,4 26,1 24,6 24,4 22,2 18,2
Trade receivables 26,2 28,4 31,7 19,4 25,8 22,3 20,5 14,1 14,4 12,1 18,1 18,0
Inventories 1,9 2,6 2,8 2,3 2,4 2,5 1,8 1,5 1,1 1,5 1,6 1,5
Other long term 0,5 0,6 0,3 0,7 0,7 0,5 0,5 0,5 0,7 0,6 1,8 2,0
Consolidated goodwill 19,2 18,8
Fixed assets 20,1 21,0 22,2 23,3 24,2 25,8 26,6 27,0 27,1 27,3 32,1 31,7
Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09
M€
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Consolidated Balance Sheet
EUR Million 30.9.2009 30.9.2008 Change %
Shareholders’ equity
Interest-bearing liabilities
Deferred tax liabilites
Other non-current liabilities
82.3
17.8
6.2
0.3
79.1
-
4.4
0.0
4.0
41.5
Current liabilities
Interest-bearing liabilities
Non-interest-bearing liabilities
2.2
12.8
-
10.8 18.8
Equity and liabilities 121.6 94.3 28.9
29.10.2009 Interim Report 1-9/200926
Prospects for 2009
The fall in demand and the global financial crisis, as per our release on 6th October, has continued. Whole year net sales are estimated to be significantly lower than last year and the operating result is expected to show a substantial loss.
The integration of Tecnomen and Lifetree is going according to plan and the acquisition is expected to create considerable synergy benefits, which will have their full impact in the next few years.
Variations between quarterly figures are expected to be considerable.
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