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SinterCast

Earnings Release Feb 22, 2012

3200_10-k_2012-02-22_2180f3a5-afcf-42dd-8421-d505743cd088.pdf

Earnings Release

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Press s Releas se: 22 F ebruary y 2012

Sint terCast F Results Full Yea s Octob ar Resu ber-Dece ults 2011 ember 2 12011

  • Revenue fo or period: SE EK 16.0 milli ion (SEK 14. 5 million). Y Year-to-date: SEK 49.0 mi million (SEK 3 39.4 million)
  • Operating result: SEK K 4.1 million ( (SEK 3.9 mill lion). Year-t to-date: SEK 11.6 million n (SEK 7.2 mi illion)
  • Earnings/s share: SEK 0 0.7 per share ( (SEK 1.3 per r share). Year r-to-date: SE EK 2.1 per sha are (SEK 2.5 per share)
  • Cashflow f from operati ions: SEK 4.6 6 million (SE EK 1.6 million n). Year-to-d date: SEK 14 4.5 million (S EK 3.0 millio on)
  • Dividend: The Board pr roposes an or rdinary divide end of SEK 1 1.0 per share ( (SEK 0.5 per r share)
  • Extraordin nary dividen nd: The Board d proposes an n extraordinar ry dividend o of SEK 0.7 pe er share
  • Navistar Pu urePOWER f foundry annou unces high vo olume produc ction of comm mercial vehic cle cylinder bl locks
  • Mid-City F Foundry instal lls Mini-Syst tem 3000 for ongoing prod duction of ind dustrial powe er component s

S SinterCast fin nishes 2011 w with record p production, r record install lations and re ecord revenu ue

C urrent Prod duction and O Outlook

Se m of po m co ap ve ha Eq de Si eries product million Engine f positive gro otential to gr mature volum ommercial ve pplications be ehicle cylinde ave already quivalents pe evelopment r interCast's fiv tion increased e Equivalents owth in every row to an ann me. SinterC ehicle and ind eyond the cu er blocks and been approv er year. The represents a ve year plann d by 7% dur s. The increa y quarter sinc nual volume Cast is curre dustrial powe urrent high vo d heads. It is ved for serie combined po market oppo ning horizon. ring the quart ased series pr e 2008. It is of approxima ntly support er application olume domain s estimated th es production otential of the ortunity of a ter, finishing roduction dur estimated th ately 1.9 mil ting product ns in Europe, ns of passeng hat the curren n, could prov e current serie approximately g the year wi ring the fourt hat the current llion Engine developmen Asia and the ger vehicle V nt product de vide approxi es production y 4.55 millio th record ann th quarter ext t series produ Equivalents w nt programm e Americas, in V-diesel cylin evelopment p imately 2.65 n programmes on Engine E nualised prod xtended the co uction progra when all pro mes for pass including som nder blocks a programmes, million add s and the pro Equivalents p duction of 1. ontinuous tre ammes have t grammes rea senger vehic me high volum and commerc some of whi ditional Engi grammes und per year with 55 end the ach cle, me cial ich ine der hin

O (> co Th ad pr fr Th lo Si pr he On 25 Januar >100,000 Eng ontrol techno he System 3 dvanced insta rocess, the Sy rom the melti he technolog ocated in Indi interCast con rovide high v eads with eng ry 2012, the gine Equivale logy. The se 3000 installa allation to da ystem 3000 a ing, mouldin gy agreement ianapolis, Ind ntrol systems volume CGI gine displacem e Navistar P ents per year) eries producti ation at the ate. In addi also provides g and shaket between Pu diana and Wa on the two c production c ments as larg PurePOWER production o ion began dur PurePOWER ition to the s s automatic fe -out operation urePOWER aukesha, Wis casting lines i capability for e as 15 litres. foundry in of commercia uring mid-201 R Indianapol standard mea feedback cont ns to provide and SinterC sconsin, with in Waukesha r passenger v . Indianapolis al vehicle cyli 11and ramped lis casting fa asure-and-cor trol of the ba e enhanced Q ast encompa PurePOWER a. Together, t vehicle and c , Indiana an inder blocks u d up during th acility is Sin rrect feedforw ase treatment QS 9000 qual sses the Pur R reserving th the Indianapo commercial v nnounced the using the Sin he third and nterCast's m ward control t operation an lity control a rePOWER ca the right to in olis and Wau vehicle cylin e high volum nterCast proce fourth quarte most technica of the casti nd data loggi and traceabili asting faciliti nstall addition ukesha faciliti nder blocks a me ess ers. ally ing ing ity. ies nal ies and

Fo C pr co de pr pr ollowing thre ity Foundry roviding Mid omponents. T emanding ind rimarily prod roduction inc ee years of ni Company lo d-City with The CGI com dustrial powe duced for Cam reases the tot che volume C ocated in Mi fully indepen mponents pro er sector, pa meron Comp tal number of CGI productio ilwaukee, W ndent produc oduced at Mid articularly for pression, inclu f SinterCast-C on with on-si Wisconsin inst ction capabil d-City Found r the off-sho ude cylinder CGI compone ite technical s talled a Min lity for its o dry range fro ore oil and g heads and tu ents currently support provi i-System 300 ongoing prod m 100 to 550 gas industries urbocharger c y in series pro ided by Sinte 00 during D duction of in 0 kg and are s. The casti components. oduction to 52 erCast, the Mi December 201 ndustrial pow all used in t ngs, which a The Mid-C 2. id-11, wer the are ity

W 20 With the Mini 011, exceedi i-System 300 ing the 2011 00 installation 1 installation n at Mid-City n outlook tha y, SinterCast at was first t reached s announced d ix new instal during Novem llation comm ember 2010. mitments duri The six ne ing ew installations, made in China, Japan, Korea (2) and the United States (2) resulted in SinterCast's best year ever for new installations.

Following the introduction of SinterCast's ductile iron product development at the GIFA world foundry trade fair in June 2011, the first field trial has been conducted at a major international foundry in North America. The objective of the trial was to provide an initial demonstration of the technology and to collect production data to refine and validate the correlations established during the initial development. The start of field trials represents an important step in the product development phase, which is expected to continue throughout 2012 before a final decision can be made regarding the launch of a commercial product. The ductile iron technology is intended to provide a net cost-benefit to the foundry by reducing magnesium consumption, improving mould yield, reducing casting defects and improving machinability

Financial Summary

Revenue

The revenue for the SinterCast Group relates primarily to income from equipment (sales and leases), series production and engineering service.

Revenue Breakdown October-December January-December
2011 2010 2011 2010
Number of Sampling Cups shipped 33,100 30,600 138,200 102,650
Equipment 1 4.6 5.3 7.9 6.8
Series Production 2 11.0 8.7 39.0 30.9
3
Engineering Service
0.4 0.3 2.0 1.3
Other 0.0 0.2 0.1 0.4
Total 16.0 14.5 49.0 39.4

(Amounts in SEK million if not otherwise stated)

Notes: 1. Includes revenue from system sales and leases and sales of spare parts

  1. Includes revenue from production fees, consumables and software licence fees

  2. Includes revenue from technical support, on-site trials and sales of test pieces

The October-December 2011 revenue amounted to SEK 16.0 million (SEK 14.5 million). The revenue increase of 10% is a result of the increases in series production and Sampling Cup shipments. The revenue from series production increased by 26% to SEK 11.0 million (SEK 8.7 million), due to the record production at an annualised rate of approximately 1.55 million (1.2 million) Engine Equivalents and the shipment of 33,100 (30,600) Sampling Cups. Installation revenue amounting to SEK 4.6 million (SEK 5.3 million) is a result of Mini-System 3000 deliveries to FAW Wuxi Diesel in China, Mid-City Foundry in the USA and to Toa Koki in Japan.

The January-December 2011 revenue amounted to SEK 49.0 million (SEK 39.4 million). The revenue increase of 24% represents the combined effect of a 26% increase in series production revenue and a 16% increase in equipment sales. During the period, 138,200 (102,650) Sampling Cups were shipped. The increased revenue related to installations is a result of the fully automated System 3000 installation at the PurePOWER foundry in the USA and to Mini-System 3000 installations at Daeshin in Korea, FAW Wuxi Diesel in China, Mid-City Foundry in the USA and at Toa Koki in Japan. The System 3000 installation at Daedong in Korea was commissioned during January 2011, but accounted for as revenue when it was shipped in December 2010.

Results

The business activities of SinterCast are best reflected by the Operating Result. In contrast, the 'Result for the period' and the 'Result after tax per share' are influenced by the financial income and costs and by the revaluation of tax assets, as described in the section below entitled "Deferred Tax Asset".

Results Summary October-December January-December
2011 2010 2011 2010
Operating Result 4.1 3.9 11.6 7.2
Result for the period 4.8 9.1 14.5 16.5
Result after tax per share (SEK) 0.7 1.3 2.1 2.5

(Amounts in SEK million if not otherwise stated)

The October-December 2011 operating result of SEK 4.1 million (SEK 3.9 million) was primarily affected, compared to the same period last year, by higher gross results of SEK 0.5 million, higher costs of SEK 0.5 million and increased exchange gains on bank holdings, operating receivables, and liabilities of SEK 0.2 million.

The result after tax for October-December 2011 amounted to SEK 4.8 million (SEK 9.1 million), primarily related to the revaluation of the deferred tax asset, accounted as tax income, amounting to SEK 0.1 million (SEK 4.9 million). This change is due to the market recovery following the downturn, as described in the section below entitled "Deferred Tax Asset".

The January-December 2011 operating result of SEK 11.6 million (SEK 7.2 million), compared to 2010, was primarily affected by higher gross results of SEK 5.6 million, higher costs of SEK 4.1 million and increased exchange gains on bank holdings, operating receivables, and liabilities of SEK 2.9 million. The cost increase is mainly within the sales & marketing function, as a result of SinterCast's efforts to increase its market presence and to grow the business.

The result after tax for the January-December 2011 period amounted to SEK 14.5 million (SEK 16.5 million), primarily related to the revaluation of the deferred tax asset, accounted as tax income, amounting to SEK 3.6 million (SEK 8.1 million), as described in the section below entitled "Deferred Tax Asset".

Deferred Tax Asset

The estimated future taxable profit and deferred tax asset calculation is reassessed every quarter. As of 31 December 2011, SEK 125.1 million (SEK 120.4 million) of SinterCast's total carried-forward tax losses have been used as the basis of the updated calculation, resulting in SEK 32.9 million (SEK 29.3 million) being capitalised as a deferred tax asset. The change in deferred tax asset, accounted as tax income, amounted to SEK 3.6 million (SEK 8.1 million), representing a significant change compared to 2010. The larger increase in 2010 was mainly due to the market recovery following the downturn. The estimated future taxable profit from secure production programs, which is the basis for the calculation, recovered during 2010 from low levels in 2008 and 2009. In contrast, the increase during 2011 was more moderate since the market outlook was more stable compared to the previous year.

Employee Stock Option Programme

As of 31 December 2011, the cost of the employee stock option programme 2009-2013 was calculated at a total amount of SEK 3.3 million (SEK 3.1 million), based on a closing share price of SEK 45.0 (SEK 51.3). During 2011, SEK 0.7 million (SEK 1.5 million) was accounted for as costs related to the option programme.

The Board of Directors used the authorisation given at the 2011 AGM to compensate the employees in cash instead of exercising the options for 60,000 new shares in the stock market. In consideration of the current market conditions and the daily turnover, coupled with the dilution effects and administrative costs, the Board preferred to follow the AGM authorisation and to compensate the employees in cash for the second tranche of the 2009-2013 option programme. The cash compensation resulted in a cost of SEK 0.3 million, including social contributions. The Board transaction was formally agreed with the employees and concluded on 25 November 2011.

Cashflow, Liquidity and Investments

SinterCast has historically been financed by risk capital provided by its shareholders and has managed its expenses according to market forecasts, resource requirements and regular reviews of expenditures in relation to the annual budget. Following positive cashflow from operations during 2010 and 2011, the Board judges that the long-term financing of the Company is secure, allowing the Company to be more pro-active in its operations and growth strategy.

Cashflow Summary October-December January-December
2011 2010 2011 2010
Cashflow from operations 4.6 1.6 14.5 3.0
Cashflow from investment activities -0.1 -0.3 -0.4 -0.5
Cashflow from financing activities -0.3 13.0 -6.8 13.0
Cashflow total 4.2 14.3 7.3 15.5
Liquidity 47.6 40.3 47.6 40.3

(Amounts in SEK million if not otherwise stated)

The October-December 2011 cashflow result was SEK 4.2 million (SEK 14.3 million). The higher cashflow during the same period in 2010 is primarily due to the exercise of the shareholder warrants (SEK 11.3 million) and the exercise of the first 15% of the employee options (SEK 1.7 million).

The January-December 2011 cashflow result was SEK 7.3 million (SEK 15.5 million) increasing the liquidity on 31 December 2011 to SEK 47.6 million (SEK 40.3 million). The increased liquidity includes the payment of the dividend amounting to SEK 3.5 million (SEK 0.0 million) and repayment of the loan to Sörmlands Sparbank amounting to SEK 3.0 million (SEK 0.0 million). The cashflow result excluding the dividend and the loan repayment would have been SEK 13.8 million. Investments during the period amounted to SEK 1.0 million (SEK 0.7 million).

Risks and Uncertainty Factors

The main uncertainty factor for SinterCast continues to be the overall timing of the CGI market ramp-up. This primarily depends on OEM decisions for new CGI engines and other components, the global economy for new vehicle sales and the individual sales success of vehicles equipped with SinterCast-CGI components.

SinterCast has diversified its product development activities in order to minimise the risk associated with any one industrial sector. Current series production is well balanced between V-diesel engines for passenger vehicles, commercial vehicle engine components, and other applications such as exhaust components and industrial power engines. SinterCast continues to support product development in these traditional areas while also exploring other potential applications. SinterCast's presence in Europe, Asia and the Americas also reduces the dependence on any one geographical sector. Pending the results of field trials, the new ductile iron technology could provide the potential to extend the market activities beyond the core CGI arena.

Market Penetration and Competition

SinterCast enjoys global brand recognition and respect as the CGI technology leader and is welcomed by the industry as a reliable and trustworthy partner. However, virtually every company encounters competition, and SinterCast is no exception. As the CGI market has developed, some foundry supply companies have proposed alternative CGI technologies. To SinterCast's knowledge, these have included Hereaus-Electronite, OCC, OxyCast and NovaCast. It is also possible that some foundries may opt to produce CGI using in-house control and discipline, but it is generally judged that this will become less likely as product complexity and production volumes increase, and as specification requirements become more rigidly enforced by the end-users. SinterCast judges that its technology and engineering know-how provides the most reliable and cost-effective solution for the production of high quality CGI. Based on its proven technology, production experience and engineering service, SinterCast will continue to support new CGI development activities to further increase its share of the world CGI production capacity.

SinterCast's business development is strongly linked to the internal combustion engine, and particularly to the diesel engine. New powertrain technologies, such as vehicle electrification (hybrids and plug-in vehicles) and fuel cells attract significant media attention; however, the development and implementation of these technologies remain a longterm prospect. Most industry forecasts indicate a market penetration for these technologies of approximately 10% in the 2020 to 2025 timeframe, which is below the expected global penetration for diesel engines. In consideration of the technology leadtime and other practical concerns such as increased cost and driving range, SinterCast does not expect these technologies to have a significant effect on the Company's competitive position for the foreseeable future.

Business Model

SinterCast sells or leases the System 3000 hardware, leases the process control software, sells the sampling consumables, and charges a running Production Fee for each tonne of CGI castings produced using the SinterCast technology. Revenue is also derived from spare parts, engineering service, field trials and sales of test pieces. The total running fees (sampling consumables plus Production Fee) depend on the ladle size and the casting yield for each foundry and each product. For a typical cylinder block, the running fees provide revenue of approximately EUR 40~50 per tonne of castings, equivalently, EUR 2.00~2.50 for each 50 kg Engine Equivalent. The SinterCast business model is highly scalable, allowing profitability to rise as the installed base grows and as more products enter series production.

Organisation

With successful high volume CGI production in foundries located in Europe, Asia and the America's, SinterCast has built up a global organisation with employees and representatives in Sweden, the United Kingdom, the United States, China, Korea, Japan, India and Australia. During 2011, new recruitments were made to strengthen the organisation and to improve the future growth prospects, including a new Sales Director for China, a new Global Sales & Marketing Director, a Market Communications assistant and a new Metallurgical Research engineer. As of 31 December 2011, the Group had 17 (13) employees, three (two) of which were female. Further recruitment will be phased with the development of field activities, particularly the need to increase sales activities and to support new installations.

Parent Company

SinterCast AB (publ) is the Parent Company of the SinterCast Group, with its registered office located in Stockholm, Sweden. The Parent Company has 14 (10) employees. The majority of the operations are conducted by the Parent Company, including responsibility for the representative office in China and sales representatives in Australia, India, Japan and Korea. Operations in the UK and the USA are managed by the local companies. The information given for the Group in this report corresponds in all material respects to the Parent Company.

Patents

SinterCast currently holds 11 (12) patents. SinterCast currently maintains 53 (59) individual national phase patents granted or pending worldwide. The 11 base patents address SinterCast's metallurgical technology, the Sampling Cup, product applications and machining.

Accounting Principles

The information provided on behalf of the Group in this interim report has been prepared in accordance with Sweden's Annual Accounts Act and IAS 34 Interim Financial Reporting. The reporting for the Parent Company has been prepared in accordance with Sweden's Annual Accounts Act and RFR 2. The accounting policies that have been applied for the Group and for the Parent Company are in agreement with the accounting policies used in the preparation of the Company's latest annual report.

No material transactions have taken place between SinterCast and the Board or the Management during the period, except for the second exercise of the employee stock option programme 2009-2013.

Events after the Balance Sheet Date

The following press release has been issued: 25 January 2012 – PurePOWER Technologies begins Compacted Graphite Iron Production at Indianapolis Casting Facility

There have been no other significant events since the balance sheet date of 31 December 2011 that could materially change these financial statements.

Nomination Committee

The Nomination Committee, elected by the Annual General Meeting 2011, consists of Lars Ahlström, Chairman, Ulla-Britt Fräjdin-Hellqvist and Torbjörn Nordberg. The Nomination Committee can be contacted at: [email protected]

Annual General Meeting

The Annual General Meeting 2012 of SinterCast AB (publ) will be held on 24 May 2012.

The Board of Directors intends to propose to the AGM 2012 to decide that the results for 2011 be carried forward, to propose a dividend for 2012, and, on an annual basis, to seek shareholder approval to authorise a share buy-back programme.

Dividend

The Board's intention is to continue to provide an ordinary dividend to the shareholders, based primarily on the cashflow from operations. In the event that the Board considers that the liquidity exceeds the amount needed to support the operational requirements and strategic objectives, the Board has the option to propose an extraordinary dividend or a share buy-back to further adjust the liquidity.

Based on the improved profitability and increased liquidity of the company, the Board of Directors propose an ordinary dividend of SEK 1.0 (0.5) per share and an extraordinary dividend of SEK 0.7 per share, resulting in a total dividend of SEK 1.7 per share and a total transfer of SEK 11.9 million (SEK 3.5 million) to the shareholders of SinterCast AB (publ). The Board proposes 18 May, 2012 as the record date for entitlement to receive dividends.

In deciding the amount of the ordinary and extraordinary dividends to be proposed to the AGM 2012, the Board considered cashflow from operations and investment requirements together with other factors, such as market outlook, growth strategy and the internal financial forecast. The proposed ordinary dividend represents 48% of the 2011 cashflow from operations and 60% of the 2011 Operating result for the Group. The total amount of the ordinary and extraordinary dividends represents 82% of the 2011 cashflow from operations and 102% of the 2011 Operating result for the Group.

Information

The Interim Report January-March 2012 will be published on 25 April 2012 The Interim Report April-June 2012 will be published on 22 August 2012 The Interim Report July-September 2012 will be published on 7 November 2012 The Interim Report October- December and Full Year Results 2012 will be published on 20 February 2013

Annual Report 2011

The Annual Report 2011 will be published on 4 April 2012.

This report has not been reviewed by the Company's Auditors.

For further information please contact:

Dr. Steve Dawson President & CEO SinterCast AB (publ) Office: +46 8 660 7750 Mobile: +44 771 002 6342 e-mail: [email protected] website: www.sintercast.com

SinterCast is the world's leading supplier of process control technology for the reliable high volume production of Compacted Graphite Iron (CGI). With at least 75% higher tensile strength, 45% higher stiffness and approximately double the fatigue strength of conventional grey cast iron and aluminium, CGI allows engine designers to improve performance, fuel economy and durability while reducing engine weight, noise and emissions. The SinterCast technology is used for the production of more than 50 CGI components, ranging from 2 kg to 17 tonnes, all using the same proven process control technology. The end-users of SinterCast-CGI components include Aston Martin, Audi, Cameron Compression, Caterpillar, Chrysler, DAF Trucks, Ford, Ford-Otosan, General Electric Transportation Systems, General Motors, Hyundai, Jaguar, Jeep, Kia, Lancia, Land Rover, MAN, Navistar, Porsche, PSA Peugeot-Citroën, Renault, Rolls-Royce Power Engineering, Scania, Toyota, VM Motori, Volkswagen, Volvo and Waukesha Engine. The SinterCast share is quoted on the Small Cap segment of the NASDAQ OMX stock exchange (Stockholmsbörsen: SINT). For more information: www.sintercast.com

- END-

October-December January - December
AMOUNTS IN SEK MILLION 2011 2010 2011 2010
Revenue 16.0 14.5 49.0 39.4
Cost of goods sold -4.7 -3.7 -14.2 -10.2
Gross result 11.3 10.8 34.8 29.2
Cost of sales and marketing -4.3 -3.4 -14.4 -11.3
Cost of administration -1.7 -1.5 -6.6 -5.5
Cost of research & development -1.3 -1.9 -4.4 -4.5
Other operating income 0.1 0.0 2.2 0.0
Other operating costs 0.0 -0.1 0.0 -0.7
Operating result 4.1 3.9 11.6 7.2
Financial income 0.2 0.4 0.6 2.2
Financial costs 0.4 -0.1 -1.1 -0.9
Income Tax 0.1 4.9 3.4 8.0
Result for the period 4.8 9.1 14.5 16.5
Result attributable to:
Equity holder of the parent company 4.8 9.1 14.5 16.5
Non-controlling interests - - - -
Earnings per share, SEK 0.7 1.3 2.1 2.5
Earning per share, diluted, SEK 0.7 1.3 2.1 2.5
Number of shares at the close of the period, thousands 6,975.7 6,975.7 6,975.7 6,975.7
Average number of shares, thousands 6,975.7 6,862.8 6,975.7 6,574.5
Average number of shares adjusted for outstanding warrants 6,975.7 6,862.8 6,975.7 6,574.5

Income Statement - SinterCast Group

Statement of Comprehensive Income - SinterCast Group

October-December
January - December
AMOUNTS IN SEK MILLION 2011 2010 2011 2010
Result for the period 4.8 9.1 14.5 16.5
Other comprehensive income
Translation differences, foreign subsidiaries 0.2 0.2 0.4 0.1
Other comprehensive income, net of tax 0.2 0.2 0.4 0.1
Total comprehensive income 5.0 9.3 14.9 16.6
Total comprehensive income attributable to:
Equity holder of the parent company 5.0 9.3 14.9 16.6
Non-controlling interests - - - -

Cashflow Statement - SinterCast Group

October-December January - December
AMOUNTS IN SEK MILLION 2011 2010 2011 2010
Operating activities
Operating result 4.1 3.9 11.6 7.2
Adjustments for items not included in the cash flow
Depreciation 0.2 0.5 0.9 1.1
Other 0.2 0.1 0.8 1.3
Unrealised exchange rate differences -0.4 1.0 -0.4 0.9
Received interest 0.2 -0.3 0.6 0.1
Paid interest 0.0 -0.1 -0.1 -0.2
Total cashflow from operating activities
before change in working capital 4.3 5.1 13.4 10.4
Change in working capital
Stock -0.1 0.9 -1.9 0.8
Operating receivables -0.1 -7.3 3.7 -9.7
Operating liabilities 0.5 2.9 -0.7 1.5
Total change in working capital 0.3 -3.5 1.1 -7.4
Cashflow from operations 4.6 1.6 14.5 3.0
Investing activities
Acquisition of intangible assets 0.0 -0.1 -0.1 -0.3
Acquisition of tangible assets -0.1 -0.2 -0.3 -0.2
Increase/decrease in long-term receivables/payables 0.0 0.0 0.0 0.0
Cashflow from investing activities -0.1 -0.3 -0.4 -0.5
Financing activities
Rights issue* - 11.3 - 11.3
Employee share option programme** -0.3 1.7 -0.3 1.7
Bank loan - - -3.0 -
Dividend - - -3.5 -
Cashflow from financing activities -0.3 13.0 -6.8 13.0
Change in cash and cash equivalents*** 4.2 14.3 7.3 15.5
Cash - opening balance 43.4 26.0 40.3 24.8
Cash - closing balance 47.6 40.3 47.6 40.3

* The Rights Issue amounted to SEK 0.0 million (SEK 11.4 million) before transaction costs

** The subscription of warrants amounted to SEK 0.3 million (SEK 1.8 million) before transaction costs

*** The cash and cash equivalents comprises short-term deposits and cash at bank and in hand.

Balance Sheet - SinterCast Group

31 Dec 31 Dec 30 Sept 30 Sept
AMOUNTS IN SEK MILLION 2011 2010 2011 2010
ASSETS
Intangible assets 2.3 2.9 2.5 3.3
Tangible assets 0.4 0.2 0.7 0.2
Financial assets 32.9 29.3 32.8 24.5
Total fixed assets 35.6 32.4 36.0 28.0
Stock 4.4 3.0 4.3 3.9
Short term receivables 12.3 16.0 10.8 19.5
Short term deposits and cash at bank and in hand 47.6 40.3 43.4 26.0
Total current assets 64.3 59.3 58.5 49.4
Total Assets 99.9 91.7 94.5 77.4
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity* 93.2 81.3 88.3 70.1
Long term liabilities 0.0 0.0 0.0 0.0
Current liabilities 6.7 10.4 6.2 7.3
Total shareholders' equity and liabilities 99.9 91.7 94.5 77.4
Adjusted equity per share 13.4 11.7 12.7 10.0
* STATEMENT OF CHANGES IN EQUITY Share AdditionalAccumulated Total
Attributable to the equity holder of the parent company Capital Paid in Result Equity
Capital
Opening balance 1 January 2010 6.48 26.90 17.10 50.48
Employee share option programme, IFRS 2 - - 1.25 1.25
Rights Issue, Warrants 0.45 10.85 - 11.30
Employee share option programme, Exercise 0.05 1.65 - 1.70
Total comprehensive income - - 16.55 16.55
Closing Balance 31 December 2010 6.98 39.40 34.91 81.29
Opening balance 1 January 2011 6.98 39.40 34.91 81.29
Employee share option programme, IFRS 2 - - 0.78 0.78
Cash exercise, share option programme -0.26 -0.26
Dividend - - -3.49 -3.49
Total comprehensive income - - 14.88 14.88
Closing Balance 31 December 2011 6.98 39.40 46.82 93.20

Key Ratio and Share Data - SinterCast Group

October-December
January - December
AMOUNTS IN SEK MILLION 2011 2010 2011 2010
Key Ratio
Revenue, SEK millions 16.0 14.5 49.0 39.4
Net result, SEK millions 4.8 9.1 14.5 16.5
Operating margin % 25.6 26.9 23.7 18.3
Solidity, % 93.3 88.7 93.3 88.7
Adjusted shareholders' equity, SEK millions 93.2 81.3 93.2 81.3
Capital employed, SEK millions 93.2 84.3 93.2 84.3
Total assets, SEK millions 99.9 91.7 99.9 91.7
Return on shareholders' equity, % 5.2 12.0 16.6 25.0
Return on capital employed, % 4.8 10.8 16.4 24.3
Return on total assets, % 4.8 10.8 15.2 22.2
Debt-to-equity ratio - 0.0 - 0.0
Employees
Number of employees at the end of the period 17 13 17 13
Data per Share
Earnings per share, SEK 0.7 1.3 2.1 2.5
Dividends per share, SEK 0.5 - 0.5 -
Cashflow from operations per share, SEK 0.7 0.2 2.1 0.5
Share price at the end of the period, SEK 45.0 51.3 45.0 51.3

Operating margin % Capital employed

Average number of shares Return on shareholders' equity

Weighted average of the number of shares outstanding for the period Net result as a percentage of average adjusted

Average number of shares adjusted for outstanding warrants shareholders' equity

Weighted average of the number of shares and warrants outstanding for the period Return on capital employed

Net result divided by the average number of shares adjusted for outstanding warrants Net result after financial items plus financial expenses related to the employee stock options as a percentage of total average assets

Adjusted equity per share Debt-to-equity ratio

Adjusted equity per share adjusted for outstanding warrants shareholders' equity

Adjusted shareholders' equity divided by the average number of shares adjusted for Share price at the end of the period outstanding warrants related to employee stock options Latest paid price for the SinterCast share at

Adjusted shareholders' equity expressed as percentage Value presented as "0.0" of total assets end of period Amount below SEK 50,000

Adjusted shareholders' equity Value presented as "-"

Shareholders' equity plus 73.7% of untaxed reserves, if any No amount applicable

Operating results as percentage of revenue Total assets less non-interest bearing liabilities

Earnings per share Net result after financial items plus financial Net result divided by the average number of shares expenses as a percentage of average capital employed Earnings per share , diluted Return on total assets

Adjusted shareholders' equity divided by the average number of shares Interest bearing liabilities divided by adjusted

Solidity NASDAQ OMX stock exchange, Stockholmsbörsen

October-December January - December
AMOUNTS IN SEK MILLION 2011 2010 2011 2010
Revenue 13.9 14.4 46.1 38.5
Cost of goods sold -4.0 -3.8 -14.1 -10.4
Gross result 9.9 10.6 32.0 28.1
Cost of sales and marketing -3.0 -3.3 -12.1 -10.5
Cost of administration -1.8 -1.5 -6.6 -5.5
Cost of research & development -1.3 -1.9 -4.4 -4.5
Other operating income 0.1 0.1 2.2 0.1
Other operating costs 0.0 -0.1 0.0 0.0
Operating result 3.9 3.9 11.1 7.7
Financial income 0.2 0.4 0.6 2.2
Financial costs 0.4 -0.1 -1.1 -0.9
Income Tax 0.1 4.9 3.4 8.0
Result for the period 4.6 9.1 14.0 17.0
Result attributable to:
Equity holder of the parent company 4.6 9.1 14.0 17.0
Non-controlling interests - - - -
Earnings per share, SEK 0.7 1.3 2.0 2.6
Earning per share, diluted, SEK 0.7 1.3 2.0 2.6
Number of shares at the close of the period, thousands 6,975.7 6,975.7 6,975.7 6,975.7
Average number of shares, thousands 6,975.7 6,862.8 6,975.7 6,574.5
Average number of shares adjusted for outstanding warrants 6,975.7 6,862.8 6,975.7 6,574.5

Income Statement - SinterCast AB

Statement of Comprehensive Income - SinterCast AB

October-December January - December
AMOUNTS IN SEK MILLION 2011 2010 2011 2010
Result for the period 4.6 9.1 14.0 17.0
Total comprehensive income 4.6 9.1 14.0 17.0
Total comprehensive income attributable to:
Equity holder of the parent company 4.6 9.1 14.0 17.0
Non-controlling interests - - - -

Balance Sheet - SinterCast AB

31 Dec 31 Dec 30 Sept 30 Sept
AMOUNTS IN SEK MILLION 2011 2010 2011 2010
ASSETS
Intangible assets 2.3 2.9 2.5 3.3
Tangible assets 0.4 0.2 0.3 0.2
Financial assets 36.0 32.1 35.9 26.9
Total fixed assets 38.7 35.2 38.7 30.4
Stock 3.7 2.3 3.5 3.1
Short-term receivables 9.7 16.2 15.0 23.1
Short term deposits and cash at bank and in hand 45.4 39.7 41.8 25.3
Total current assets 58.8 58.2 60.3 51.5
Total Assets 97.5 93.4 99.0 81.9
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity* 84.6 73.6 80.0 62.5
Long term liabilities 0.1 0.1 0.1 0.1
Current liabilities 12.8 19.7 18.9 19.3
Total shareholders' equity and liabilities 97.5 93.4 99.0 81.9
Adjusted equity per share 12.1 10.6 11.5 9.0
* STATEMENT OF CHANGES IN EQUITY Share Statutory Share Results Results Total
Attributable to the equity holder of the parent company Capital Reserve Premium
Reserve
Brought
Forward
For the
Year
Equity
Opening balance 1 January 2010 6.48 9.53 17.37 12.06 -3.11 42.33
Employee share option programme, IFRS 2 - - - 1.25 - 1.25
Rights Issue, Warrants 0.45 10.85 - - - 11.30
Employee share option programme, Exercise 0.05 1.65 - - - 1.70
Total comprehensive income - - - - 16.99 16.99
Closing Balance 31 December 2010 6.98 22.03 17.37 13.31 13.88 73.57
Opening balance 1 January 2011 6.98 9.53 29.87 10.20 16.99 73.57
Employee share option programme, IFRS 2 - - - 0.78 - 0.78
Cash exercise, share option programme - - - -0.26 - -0.26
Dividend - - - -3.49 - -3.49
Total comprehensive income - - - - 14.03 14.03
Closing Balance 31 December 2011 6.98 9.53 29.87 7.23 31.02 84.63

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