Interim / Quarterly Report • Jan 14, 2009
Interim / Quarterly Report
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Half-yearly Financial Report of CeoTronics AG for Fiscal Year 2008/2009
| H1 2008/2009 IFRS/€ thousand |
H1 2007/2008 IFRS/€ thousand |
Change | |
|---|---|---|---|
| Revenues | 10,193 | 10,568 | -3.5% |
| Investments | 458 | 273 | +67.8% |
| R&D expenses | 796 | 744 | +7.0% |
| EBITDA | 1,809 | 1,783 | +1.5% |
| EBIT | 1,549 | 1,526 | +1.5% |
| EBIT margin (in %) | 15.2 | 14.4 | - |
| Profit before tax Profit for the period Profit attributable to shareholders of CeoTronics AG |
1,512 1,170 1,150 |
1,463 974 978 |
+3.3% +20.1% +17.6% |
| Gross cash flow | 1,430 | 1,231 | +16.2% |
| Cash and cash equivalents | 546 | 922 | -40.8% |
| Total assets | 21,655 | 19,762 | +9.6% |
| Equity | 12,926 | 12,055 | +7.2% |
| Equity ratio (%) | 59.7 | 61.0 | -1.3% |
| Employees as of November 30 | 154 | 145 | +6.2% |
| Earnings per share (in €) | 0.17 | 0.15 | + 13.3% |
| Gross cash flow per share (in €) | 0.22 | 0.19 | + 15.8% |
| Key Group Figures | 2 |
|---|---|
| Letter from the Board of Management | 4 |
| Group Management Report | |
| Our Market | 5 |
| Business Developments | 5 |
| Results of Operations | 6 |
| Investments and Depreciation | 6 |
| Net Assets and Financial Position | 6 |
| Workforce Development | 6 |
| CeoTronics' Shares | 7 |
| Report on Risks and Opportunities up to May 31, 2009 |
8 |
| Report on Expected Developments | 8 |
| Consolidated Financial Statements as of November 30, 2008 |
|
|---|---|
| Consolidated Balance Sheet (IFRS) | 9 |
| Consolidated Income Statement (IFRS) | 10 |
| Consolidated Cash Flow Statement (IFRS) | 11 |
| Statement of Changes in Equity (IFRS) | 12 |
| Notes to the Consolidated Half-yearly Report 12 | |
| Consolidated Segment Reporting | 13 |
| Executive Bodies | 14 |
| Responsibility Statement | 14 |
| Current Financial Calendar | 14 |
| CeoTronics Update | 15 |
Ladies and Gentlemen, Dear Shareholders,
in the first half of fiscal year 2008/2009 (June 1 to November 30, 2008), the CeoTronics Group generated revenues of €10,193 thousand (previous year: €10,568 thousand).
This slight fall as against the record figure for the first half of fiscal year 2007/2008 is due to revenue normalization in Switzerland, France, and Spain, as well as to the effect of muted spending by German security authorities and organizations, among others, in connection with the upcoming switch to digital radio. The initial effects of the financial and economic crisis in the U.S.A. are also being felt. Successful sales in other markets were unable to fully offset these negative impacts.
CeoTronics also delivered and invoiced the third batch of the major order for CT-DECT JetCom systems from the German Armed Forces on time at the end of the second quarter of fiscal year 2008/2009.
Despite the slight decline in revenues, all key earnings and financial indicators for the first six months improved year-onyear – in some cases substantially.
EBITDA increased by 1.5% from €1,783 thousand to €1,809 thousand, and EBIT rose by 1.5% from €1,526 thousand to €1,549 thousand. Profit before tax improved by €49 thousand from €1,463 thousand to €1,512 thousand, while consolidated profit was up by €196 thousand or 20.1%, from €974 thousand to €1,170 thousand.
Gross cash flow rose by 16.2% in the period under review to €1,430 thousand. Consolidated equity increased by €871 thousand to €12,926 thousand as of November 30, 2008.
The order backlog fell year-on-year as expected because the prior-year figure included two of the three batches of the major order from the German Armed Forces worth over €6.1 million. All three batches have now been delivered and invoiced.
Excluding the major order, incoming orders in the second quarter of fiscal year 2008/2009 were up by approximately 19% year-on-year. The order backlog as of November 30, 2008 was 20.5% above the figure as of November 30, 2006 and therefore at a sufficiently high level.
CeoTronics has taken various measures to prepare for the possible effects of the global financial and economic crisis. For major projects payment guarantees are fixed with business partners if necessary.
On the purchasing side, we closely monitored our suppliers' financial data, among other things, where this is available, as well as information provided by them on their business performance, so as to identify critical situations in good time. We will also continue to do this going forward.
CeoTronics will emerge strengthened from the crisis due to its adequate cash and cash equivalents, high equity ratio, innovative products, and strong sales structure.
Despite strong incoming orders, we have issued cautious revenue, EBIT, and earnings forecasts for fiscal year 2008/2009 in view of the worst financial and economic crisis in all of our priority geographical markets for decades, as well as the delay in the switch to digital radio in Germany.
We expect consolidated revenues of approximately €20.0 million, consolidated EBIT of around €2.0 million, and a consolidated profit of approximately €1.4 million.
In contrast to many other listed companies, we have decided to publish our forecasts. Even in a negative environment, we believe transparency and continuity are important in our financial reporting.
We are rising to the challenge!
Rödermark, January 14, 2009
Thomas H. Günther Chairman of the Board of Management
CeoTronics specializes in high-end communications under difficult conditions, and develops, produces, and sells audio, video, and data communications solutions. Above all, in this niche market it is all about ensuring clear and precise interaction: in noisy or hazardous areas, while wearing protective helmets or protective clothing, in explosion hazard zones, in undercover operations, and in hands-free communication.
Our broad range of products for extremely diverse applications meets the toughest demands and focuses in particular on end-to-end system solutions in addition to traditional headsets and other communication systems for connecting to analog and digital radio systems. For example, mobile or fixed digital audio and video radio networks that can be set up in seconds and used on the move.
Our customer base includes well-known companies in industry, the service sector and sports, airlines, airports, and ground handling service companies as well as firefighters, civil defense, and rescue services.
A particular strength of CeoTronics is the development and supply of custom communications solutions for the German state and federal police, customs authorities, and the army, navy, and air force. Various systems are available in this field. Fully and partially covert communication systems as well as miniature radio cameras are used for the wireless digital transfer of video images during undercover investigations and for preserving evidence.
In both Europe and the U.S.A., the H1 2008/2009 reporting period was impacted by the deepening financial and economic crisis. A large proportion of the world's major economies are now in a recession.
Many priority markets still need to increase their budgets, which have been reduced over the course of many years, i.e., to adjust them for necessary investments and staffing requirements. Better communication systems enable industrial enterprises to accelerate their workflows and increase occupational safety at the same time.
The global threat posed by international terrorism has not waned. Accordingly, government security and law enforcement agencies must upgrade their equipment in order to maintain the highest degree of security for citizens, as well as to protect freedom and democracy.
Government security and law enforcement agencies in a number of priority European markets already began switching from analog to digital radio several years ago. As a result, CeoTronics' subsidiaries in Spain, France, and Switzerland have significantly increased their revenue in recent years.
Preparations are being made for the switch in a few other priority European markets. CeoTronics expects large investments in Germany on the part of security authorities and organizations (BOS – Behörden und Organisationen mit Sicherheitsaufgaben), the Armed Forces, firefighters, and industry. Those responsible for Germany's switch to digital radio at the federal and state levels are projecting 500,000 BOS digital radio users and plan to invest a total of over €4.5 billion. Additionally, CeoTronics expects to see its revenues grow through the switch to digital radio in industry and by firefighters.
As CeoTronics has produced and sold over 45,000 systems for connection to the new digital TETRA/TETRAPOL radios since 1999, the Company has a pool of experience that is certainly a major competitive advantage.
In the first six months of fiscal year 2008/2009 (June 1 to November 30, 2008), CeoTronics was unable to match the record revenues of the prior-year period, which grew by 13.3%. Consolidated revenues fell by €375 thousand or 3.5%, from €10,568 thousand to €10,193 thousand.
Expressed in euros, revenues increased substantially at CeoTronics Germany (+34.8%), CeoTronics Poland (+255.3%), and CT-Video (+70.5%). As expected, CeoTronics Spain (-75.2%), CeoTronics France (-59.6%), and CeoTronics Switzerland (-40.3%) were unable to match the previous year's very high level of revenues. CeoTronics U.S.A.'s revenues declined by 72.8% as against the prior-year figure, due among other things to the initial training period for new sales associates and the downturn in spending by U.S. authorities and industry caused by the recession.
On account of the above-mentioned revenue developments, the share of revenues generated outside Germany fell to 32.8% in the first six months of fiscal year 2008/2009 (previous year 58.6%). The proportion accounted for by Germany increased correspondingly to 67.2% (previous year: 41.4%).
The order backlog as of November 30, 2008 fell by 48.6% year-on-year as expected because the prior-year figure included two of the three batches of the major order from the German Armed Forces worth over €6.1 million. All three batches have now been delivered and invoiced. Excluding this major order, incoming orders in the second quarter of fiscal year 2008/2009 were up by approximately 19% year-on-year. The order backlog as of November 30, 2008 was 20.5% above the figure as of November 30, 2006 and therefore at a sufficiently high level.
Despite the drop in revenues in the first six months of fiscal year 2008/2009, CeoTronics lifted its key earnings figures against the prior-year period – in some cases substantially. EBITDA improved by €26 thousand from €1,783 thousand to €1,809 thousand, and EBIT rose by €23 thousand from €1,526 thousand to €1,549 thousand. Profit before tax increased by €49 thousand from €1,463 thousand to €1,512 thousand, while consolidated profit was up by €196 thousand or 20.1%, from €974 thousand to €1,170 thousand.
The improved results are due in particular to a positive exchange rate effect (increase in the USD against the EUR). The opposite trend was apparent in the second half of fiscal year 2007/2008.
The share of profit for the period attributable to shareholders of the parent amounted to €1,150 thousand for the first half of fiscal year 2008/2009 (previous year: €978 thousand).
Earnings per share (after tax) were €0.17, up from €0.15 in the previous year. The 1:3 share split that took place on January 31, 2008 is reflected in this calculation.
The cost of sales increased by 1.6% year-on-year from 50.2% to 51.8% due to changes in the order structure this was attributable in particular to the major order from the German Armed Forces).
Operating expenses (excluding cost of materials) accounted for 15.9% of revenues. This figure is up slightly on the previous year (15.3%) due to the lower revenues and more or less constant expenses year-on-year.
Selling and marketing expenses as a percentage of revenues amounted to 21.7% in the first six months of fiscal year 2008/2009 (previous year 19.9%). Absolute costs increased by 5.1% year-on-year. This rise was primarily due to increased trade fair expenses resulting from CeoTronics' participation in the biennial GPEC exhibition in June 2008.
General and administrative costs rose by 8.3% and accounted for 8.2% of revenues (previous year: 7.3%).
Research and development costs also increased year-onyear, climbing by 7.0%. The ratio of research and development costs of sales to revenues is now 7.8% (previous year: 7.0%).
CeoTronics has prepared itself in good time to meet future challenges by investing in employee capacity, markets, technologies, developments, and production technologies and processes.
Investments in the first six months of fiscal year 2008/2009 totaled €458 thousand, up 67.8% on the prior-year period (€273 thousand).
Gross cash flow for the period under review was up by €199 thousand year-on-year, from €1,231 thousand to €1,430 thousand.
Cash and cash equivalents fell by €362 thousand as against the prior-year period to €546 thousand. This decline is due in particular to higher receivables at the end of the quarter.
The increase in receivables relates mainly to the delivery and invoicing of the third batch of the major order from the German Armed Forces. Payment was received in the third quarter of fiscal year 2008/2009, which has enabled CeoTronics to significantly reduce its receivables in the meantime and substantially increase its cash and cash equivalents.
Equity as of November 30, 2008 increased to €12,926 thousand (previous year €12,055 thousand), while the equity ratio amounted to 59.7% (previous year 61.0%).
The number of staff (including trainees) rose from 145 (previous year) to 154 as of November 30, 2008. The increase in the workforce related solely to the Company's German locations in Rödermark and Lutherstadt Eisleben (currently 139 staff). This reflects our clear commitment to Germany. The total trainee ratio at the German locations is 5.7%.
CeoTronics' shares were unable to escape the general stock market slump caused by the global financial market and economic crisis. Nevertheless, the decline in the price of CeoTronics' shares – down 28.1% – was substantially less pronounced than that of the corresponding benchmark indices during the first six months of fiscal year 2008/2009. The TECDAX (-41.7%), the Technology All Share (-42.4%), and the GEX (-44.4%) indices all recorded significantly worse results in the period under review.
CeoTronics' share price hardly reacted to the very strong results for 2007/2008, which saw record revenues of €21.3 million (+18.8%), an improvement in EBIT of 45.2% to €2,786 thousand, a rise in profit before tax of 43.4% to €2,668 thousand, and an increase in consolidated profit of 75.3% to €1,835 thousand. The severe undervaluation continued. Employees, the Board of Management, the Supervisory Board, and our shareholders had hoped for much more positive share price performance given the outstanding results and also taking into account the height of the dividend. The current research study published by German Business Concept AG (GBC) on October 16, 2008 also documents that the shares are clearly undervalued. GBC calculated a price target of €4.87, an upside potential of more than 94% (as of January 13, 2009: > 103%) and issued a "buy" recommendation for CeoTronics' shares.
The extremely favorable valuation of CeoTronics' shares is also shown by a number of key figures: The price/earnings ratio is currently 8.67, the price/book ratio 1.22, the price/sales ratio is 0.74 and the enterprise value/EBITDA ratio is a low 5.58 (all figures based on the share price on January 13, 2009, and the earnings figures for fiscal year 2007/2008).
Given the dividend of €0.15 paid per share, the dividend yield was 5.9% measured in terms of the share price as of November 7, 2008.
The consensus now is that the current global financial and economic crisis will significantly exceed all economic crises of the past decades in terms of both its duration and its severity. No assurance can be given that these negative economic developments will not also affect the course of business at CeoTronics AG.
This applies especially to CeoTronics U.S.A. If CeoTronics U.S.A. does not meet its revenue and earnings forecasts, it cannot be ruled out that the carrying amount of goodwill at CeoTronics U.S.A. will decrease, that CeoTronics AG (Germany) will have to write down the value of its investment in CeoTronics U.S.A., and/or that CeoTronics AG (Germany) will have to recognize impairment losses on its receivables from CeoTronics U.S.A.
North America is the market with the greatest potential for CeoTronics products. Our successful sales and improved visibility, the result of our sales activities and marketing investments to date, have encouraged us to expand our sales team in the U.S.A. Additional sales representatives will significantly improve our market presence and the number of customer contacts and enable us to expand our customer base.
Competitors, radio manufacturers and dealers, and importers are stepping up their efforts to penetrate CeoTronics' markets - especially Germany - using cheap goods from Asia, among other things, in order to win tenders during the switch to digital radio. CeoTronics will not leave the premium segment and will continue to attempt to keep price acceptance and appreciation for its products and systems at a high level by offering outstanding quality and performance.
The switch to digital radio by the police, firefighters, and industrial enterprises in Germany, Northern Europe, and Austria will offer CeoTronics additional market potential for audio products. However, if CeoTronics does not participate to the desired extent in the switch to digital radio, or if the switch is delayed further, this could have an adverse effect on CeoTronics AG's revenues and earnings development.
CT video systems will play an even more important role in fighting crime and terrorism in future. The CeoTronics Group's long-term revenue growth will be boosted by authorities investing in monitoring areas at risk -- especially those temporarily at risk -- and in securing video evidence, as well as by CT-Video GmbH's new product innovations.
The development and marketing of new products ensure CeoTronics' market leadership and open up new markets. This also applies to markets outside of the defined geographical priority markets in Europe and North America.
In addition to the high order backlog at the end of the 2008 calendar year, CeoTronics is pleased with the orders it has received up to the date of going to print, and with the projects being negotiated or prepared for the current fiscal year 2008/2009.
In fiscal year 2008/2009, CeoTronics is aiming to:
Revenue target is 4.7% and profit target is 8.8% above the average figures for the last three fiscal years.
Assuming that business continues to develop positively and that revenue and earnings targets are met, the Board of Management plans to propose a dividend for the sixth consecutive time.
CeoTronics will continue to profit from the switch to digital radio in Germany and Europe in the coming fiscal years, as well as from greater investment in domestic and foreign security.
Rödermark, January 14, 2009
CeoTronics AG
Thomas H. Günther Chairman of the Board of Management, CEO
Berthold Hemer Deputy Chairman of the Board of Management, CTO
Günther Thoma Chief Operating Officer, COO
| Assets in € thousand | Half-yearly report (closing date of the current quarter) November 30, 2008 |
Annual report (closing date of last annual report) May 31, 2008 |
|---|---|---|
| Current assets Cash and cash equivalents Trade receivables Inventories Other current assets Total current assets |
546 7,986 4,730 307 13,569 |
908 6,596 4,417 387 12,308 |
| Noncurrent assets Property, plant, and equipment Intangible assets Goodwill Deferred tax assets Total noncurrent assets Total assets |
5,829 354 1,361 542 8,086 21,655 |
5,683 297 1,198 519 7,697 20,005 |
| Equity and liabilities in € thousand | Half-yearly report (closing date of the current quarter) November 30, 2008 |
Annual report (closing date of last annual report) May 31, 2008 |
|---|---|---|
| Current liabilities Current financial liabilities Trade payables Advance payments received Provisions Current tax payables Other current liabilities Total current liabilities |
2,566 698 528 904 821 1,076 6,593 |
1,423 656 41 1,400 662 693 4,875 |
| Noncurrent liabilities Noncurrent financial liabilities Total noncurrent liabilities |
2,136 2,136 |
2,163 2,163 |
| Equity Subscribed capital Capital reserves Retained earnings Cumulative other recognized income and expense Net retained profit Equity attributable to shareholders of CeoTronics AG Minority interest Total equity |
6,600 4,471 886 -155 1,043 12,845 81 12,926 |
6,600 4,471 886 52 898 12,907 60 12,967 |
| Total equity and liabilities | 21,655 | 20,005 |
| € thousand | Quarterly figures (current quarter) September 1, 2008- November 30, 2008 |
Quarterly figures (comparative quarter of previous year) September 1, 2007- November 30, 2007 |
Year-to-date (current fiscal year) June 1, 2008 - November 30, 2008 |
Year-to-date (previous year) June 1, 2007 - November 30, 2007 |
|---|---|---|---|---|
| Revenues | 7,195 | 7,423 | 10,193 | 10,568 |
| Cost of sales | -3,846 | -3,741 | -5,284 | -5,308 |
| Gross profit | 3,349 | 3,682 | 4,909 | 5,260 |
| Selling and marketing expenses | -1,200 | -1,152 | -2,215 | -2,107 |
| General and administrative expenses | -513 | -448 | -834 | -770 |
| Research and development expenses | -458 | -401 | -796 | -744 |
| Other operating income and expenses | 370 | -97 | 485 | -113 |
| Impairment of goodwill | 0 | 0 | 0 | 0 |
| Operating profit (EBIT) | 1,548 | 1,584 | 1,549 | 1,526 |
| Interest income/expense | -12 | -41 | -37 | -63 |
| Profit before tax | 1,536 | 1,543 | 1,512 | 1,463 |
| Income tax expense | -349 | -472 | -342 | -489 |
| Profit for the period | 1,187 | 1,071 | 1,170 | 974 |
| Consolidated profit/loss attributable to: | ||||
| Minority interest | 15 | -2 | 20 | -4 |
| Shareholders of CeoTronics AG | 1,172 | 1,073 | 1,150 | 978 |
| Earnings per share (basic) in € (1) | 0.18 | 0.16 | 0.17 | 0.15 |
| Earnings per share (diluted) in € (1) | 0.18 | 0.16 | 0.17 | 0.15 |
| Weighted average shares outstanding (basic) | 6,599,994 | 6,599,994 | 6,599,994 | 6,599,994 |
| Weighted average shares outstanding (diluted) | 6,599,994 | 6,599,994 | 6,599,994 | 6,599,994 |
(1) Figures for the previous year were adjusted for the effect of the 1:3 share split implemented on January 31, 2008.
| € thousand | Year-to-date | Year-to-date |
|---|---|---|
| (current fiscal year) | (previous year) | |
| June 1, 2008- | June 1, 2007- | |
| November 30, 2008 | November 30, 2007 | |
| Cash flow from operating activities | ||
| Profit before tax | 1,512 | 1,463 |
| Income tax expense | -342 | -489 |
| Profit for the period | 1,170 | 974 |
| Depreciation, amortization, and impairment losses | 260 | 257 |
| Gross cash flow | 1,430 | 1,231 |
| Changes in assets and liabilities | ||
| Change in trade receivables | -1,390 | -1,582 |
| Change in inventories | -313 | -584 |
| Change in other assets | 80 | -22 |
| Change in trade payables | 42 | 114 |
| Change in advance payments received | 487 | -164 |
| Change in other provisions | -495 | -375 |
| Change in tax payables Change in other current liabilities |
159 383 |
-214 502 |
| Change in deferred tax assets | -23 | 43 |
| Total changes in assets and liabilities | -1,070 | -2,282 |
| Net cash provided by/used in operating activities | 360 | -1,051 |
| Cash flow from investing activities | ||
| Payments to acquire intangible assets | -105 | -38 |
| Payments to acquire property, plant, and equipment | -353 | -236 |
| Change in foreign currency differences | -167 | 70 |
| Disposal of noncurrent assets (net carrying amounts) | 0 | 0 |
| Net cash used in investing activities | -625 | -204 |
| Cash flow from financing activities | ||
| Change in current financial liabilities | 1,142 | 2,104 |
| Change in noncurrent financial liabilities | -27 | -88 |
| Dividend payment to minority interest | -16 | 0 |
| Dividend payment to shareholders of CeoTronics AG | -990 | -660 |
| Net cash provided by financing activities | 109 | 1,356 |
| Change in cash and cash equivalents | -156 | 101 |
| Effect of exchange rate changes on cash and cash equivalents | -206 | 38 |
| Cash and cash equivalents at beginning of period | 908 | 783 |
| Cash and cash equivalents at end of period | 546 | 922 |
| Equity attributable to shareholders of CeoTronics AG | ||||||||
|---|---|---|---|---|---|---|---|---|
| € thousand | Subscribed capital |
reserves Capital |
Retained earnings |
accumulated Net retained profit/net losses |
income and Cumulative recognized expense other |
Total | Minority interest |
Total equity |
| Current year Balance at May 31, 2008 |
6,600 | 4,471 | 886 | 898 | 52 | 12,907 | 60 | 12,967 |
| Profit for the period Dividend distribution Currency translation adjustments Change in minority interest |
1,150 -990 -15 |
-207 | 1,150 -990 -207 -15 |
20 -16 1 16 |
1,170 -1,006 -206 1 |
|||
| Balance at November 30, 2008 |
6,600 | 4,471 | 886 | 1,043 | -155 | 12,845 | 81 | 12,926 |
| Previous year's figures for comparison Balance at May 31, 2007 |
6,600 | 4,471 | 16 | 609 | -36 | 11,660 | 45 | 11,705 |
| Profit/loss for the period Dividend distribution Currency translation adjustments Change in minority interest |
978 -660 -1 |
39 | 978 -660 39 -1 |
-4 -2 |
974 -660 39 -3 |
|||
| Balance at November 30, 2007 |
6,600 | 4,471 | 16 | 926 | 3 | 12,016 | 39 | 12,055 |
The equity ratio of the CeoTronics Group was 59.7% as of November 30, 2008 (previous year 61.0%).
The unaudited consolidated half-yearly report of CeoTronics AG as of November 30, 2008 was prepared in accordance with the International Financial Reporting Standards (IFRSs). This interim report complies with IAS 34 Interim Financial Reporting.
The half-yearly report was prepared using the accounting, measurement, and consolidation principles applied in the preparation of the consolidated annual financial statements as of May 31, 2008. Further details can be found in the Annual Report for fiscal year 2007/2008.
There were no changes in the consolidated Group structure in the first six months of fiscal year 2008/2009.
The following companies are included in the consolidated financial statements:
There were no material changes to equity compared with the last annual financial statements.
CeoTronics AG (Rotkreuz, Switzerland), CeoTronics S.A.R.L. (Brie Comte Robert, France), CeoTronics Ltd. (Aberdeen, United Kingdom), CeoTronics Inc. (Virginia Beach, U.S.A.), CeoTronics S.L. (Madrid, Spain), CT-Video GmbH (Lutherstadt Eisleben, Germany), CeoTronics Sp. z o.o. (Lodz, Poland).
Subsidiaries in which the parent directly or indirectly holds the majority of shares and hence of the voting power are consolidated in accordance with the principles of acquisition accounting under IFRSs.
We account for the 25% minority interest in CeoTronics Sp. z o.o. by deducting the minority interest and the resulting effects on profit or loss within equity in the balance sheet, the income statement, the cash flow statement, and the statement of changes in equity.
The Company assesses the performance of the subsidiaries on the basis of their pre-tax profit. The accounting and reporting principles used for regional reporting comply with the group accounting principles. The subsidiaries in the individual countries are legally independent and have their own management teams.
The Company's product groups are comparable in terms of both the production process used and the marketing methods. Internal and external reporting primarily follows geographic criteria.
The information below is presented by region.
Revenues for the first half of 2008/2009 and 2007/2008 are attributable as follows, broken down by country of origin (primary segment):
| € thousand | H1 2008/2009 | H1 2007/2008 |
|---|---|---|
| Germany Rest of Europe Rest of world |
7,739 2,386 68 |
5,973 4,346 249 |
| Third-party revenues |
10,193 | 10,568 |
By customer country (secondary segment):
| € thousand | H1 2008/2009 | H1 2007/2008 |
|---|---|---|
| Germany Rest of Europe Rest of world |
6,852 3,169 172 |
4,376 5,932 260 |
| Third-party revenues |
10,193 | 10,568 |
The profit or loss for the first six months of 2008/2009 and 2007/2008 is attributable as follows to the subsidiaries in the various regions (primary segment):
| € thousand | H1 2008/2009 | H1 2007/2008 |
|---|---|---|
| Germany Rest of Europe Rest of world |
798 92 280 |
597 528 -151 |
| Consolidated profit for the period |
1,170 | 974 |
Segment assets are attributable as follows to the subsidiaries in the various regions (primary segment) as of November 30, 2008 and November 30, 2007:
| € thousand | November 30, 2008 |
November 30, 2007 |
|---|---|---|
| Germany Rest of Europe Rest of world |
15,980 3,746 1,929 |
13,656 4,591 1,515 |
| Total segment assets |
21,655 | 19,762 |
Segment liabilities are attributable as follows to the subsidiaries in the various regions (primary segment) as of November 30, 2008 and November 30, 2007:
| € thousand | November 30, 2008 |
November 30, 2007 |
|---|---|---|
| Germany Rest of Europe Rest of world |
7,582 1,085 62 |
6,737 949 21 |
| Total segment liabilities |
8,729 | 7,707 |
Noncurrent assets are attributable as follows to the subsidiaries in the various regions (primary segment) as of November 30, 2008 and November 30, 2007:
| € thousand | November 30, 2008 |
November 30, 2007 |
|---|---|---|
| Germany Rest of Europe Rest of world |
6,060 533 951 |
5,853 550 785 |
| Total noncurrent assets |
7,544 | 7,188 |
Investments in the first six months of 2008/2009 and 2007/2008 are attributable as follows to the subsidiaries in the various regions (primary segment):
| € thousand | H1 2008/2009 |
H1 2007/2008 |
|---|---|---|
| Germany Rest of Europe Rest of world |
417 4 37 |
271 2 0 |
| Total investments | 458 | 273 |
Depreciation, amortization, and impairment losses are attributable as follows to the subsidiaries in the various regions (primary segment) in the first six months of 2008/2009 and 2007/2008:
| € thousand | H1 2008/2009 | H1 2007/2008 |
|---|---|---|
| Germany Rest of Europe Rest of world |
238 17 5 |
236 21 0 |
| Total depreciation, amortization, and impairment losses |
260 | 257 |
There were no changes in the Company's executive bodies in the first six months of 2008/2009.
| (ISIN DE0005407407/WKN 540740) | CeoTronics shares (quantity) |
|
|---|---|---|
| Board of Management | ||
| Chairman | Thomas H. Günther | 28,494 |
| Deputy Chairman | Berthold Hemer | 513,150 |
| Chief Operating Officer |
Günther Thoma | 18,066 |
| Supervisory Board | ||
| Chairman | Hans-Dieter Günther | 1,113,600 |
| Deputy Chairman | Horst Schöppner | 655,410 |
| Member | Stephan Haack | 0 |
The total number of CeoTronics AG shares at the reporting date amounted to 6,599,994.
No significant related party transactions were conducted in the first six months of 2008/2009.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year.
Rödermark, January 14, 2009
CeoTronics AG
The Board of Management
| Revenue and order backlog trends | ||||
|---|---|---|---|---|
| at the end of Q3 2008/2009 | Calendar week 6, 2009 | |||
| Report on 3rd quarter as of | ||||
| February 28, 2009 | April 3, 2009 | |||
| End of fiscal year 2008/2009 | May 31, 2009 | |||
| Revenues and order backlog at the | ||||
| end of fiscal year 2008/2009 | Calendar week 23, 2009 | |||
| Annual report 2008/2009 | August 14, 2009 | |||
| Annual earnings press conference | ||||
| 2009 and analyst meeting 2009 | August 27, 2009 | |||
| Revenue and order backlog trends | ||||
| at the end of Q1 2009/2010 | Calendar week 36, 2009 | |||
| Report on 1st quarter as of | ||||
| August 31, 2009 | October 9, 2009 | |||
| General Meeting 2009 | November 6, 2009 | |||
| Revenue and order backlog trends | ||||
| at the end of Q2 2009/2010 | Calendar week 49, 2009 | |||
| Report on 2nd quarter as of | ||||
| November 30, 2009 | January 13, 2010 |
CT-Video GmbH has completed the planning for the extension to the existing production building in Lutherstadt Eisleben and filed the application for the building permit in December 2008.
Construction is scheduled to begin in spring 2009. Completion is expected in fall/winter 2009.
Additional production space of approximately 650 m2 will be added to the existing 1,250 m² of production and commercial space.
This means that the location in Saxony-Anhalt will have room for a total of 60 employees. CT-Video GmbH currently employs 39 people (including 4 trainees).
The extended facilities are urgently required not only for the development, production, and quality assurance of CT-Video products, but also for manufacturing standard audio products and to handle the orders expected in connection with the switch to digital radio in Germany, Austria, and Northern Europe.
The latest edition of CeoTronics' customer and employee newspaper is available on request either by post or download.
Further information on CeoTronics can be found on CeoTronics' webpage at www.ceotronics.com.
CeoTronics AG Audio • Video • Data Communication Adam-Opel-Str. 6 63322 Rödermark (Germany) Tel. +49 6074 8751-722 Fax +49 6074 8751-720 E-mail: [email protected]
www.ceotronics.com
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