Hexagon Composites — Interim / Quarterly Report 2010

Oct 29, 2010

Hexagon Composites ASA - Profit and Loss Statement
3^{\text{rd}}
Quarter 2010

(All figures in NOK 1,000)

PROFIT AND LOSS ACCOUNT	30.09.2010	3Q 2010	30.09.2009	3Q 2009	31.12.2009
	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Operating income	610,938	237,683	683,167	225,655	867,542
Cost of materials	303,149	120,010	362,059	121,765	457,049
Payroll and social security expenses	132,120	47,008	128,659	41,376	173,151
Other operating expenses	88,092	28,385	79,454	23,046	108,702
Operating profit before depreciation (EBITDA)	87,576	42,281	112,995	39,468	128,640
Depreciation	53,433	21,559	41,986	13,570	56,654
Operating profit (EBIT)	34,143	20,722	71,009	25,898	71,985
Income from investments in associates	-428	-76	-2,578	-4,137	-3,112
Other financial items (net)	-878	-5,116	17,152	13,113	17,511
Profit/loss before tax	32,838	15,530	85,583	34,874	86,385
Tax	-9,823	-4,704	-24,805	-10,796	-24,946
Profit/loss after tax	23,015	10,826	60,778	24,078	61,439

Comprehensive income statement according to IAS 1

Profit/loss after tax	23,015	60,778	61,439
Exchange differences arising from the translation of foreign operations	1,058	-10,745	-10,791
Actuarial gains/losses for the period	0	0	2,488
Fair value adjustments hedging instruments	3,235	4,163	4,911
Other income and expenses in associates	0	-2,456	-2,258
Comprehensive income	27,308	51,740	55,789

BALANCE SHEET

Intangible assets	135,601	118,546	125,005
Tangible fixed assets	304,719	259,045	286,201
Investments in associates	5,669	52,561	6,097
Other financial fixed assets	1,046	2,588	863
Inventories	154,152	112,452	95,397
Receivables	244,741	184,075	198,521
Bank deposits, cash and similar	9,195	6,405	46,563
Total assets	855,124	735,672	758,648
Paid-in capital	103,054	177,106	177,359
Other equity	152,243	76,002	80,541
Provisions	24,937	23,440	24,049
Interest-bearing long-term liabilities	316,911	310,163	309,898
Interest-bearing current liabilities	53,920	32,946	31,905
Other current liabilities	204,058	116,014	134,896
Total liabilities and equity	855,124	735,672	758,648

CASH FLOW STATEMENT

Profit before tax	32,838	85,583	86,385
Depreciation and write-downs	53,433	41,986	56,654
Change in net working capital	-23,220	-37,677	-4,006
Net cash flow from operations	63,051	89,892	139,033
Net cash flow from investment activities	-67,040	-45,051	-46,815
Net cash flow from financing activities	-33,379	-48,374	-55,593
Net change in cash and cash equivalents	-37,368	-3,533	36,625
Cash and cash equivalents at start of period	46,563	9,938	9,938
Cash and cash equivalents at end of period	9,195	6,405	46,563
Available unused credit facility	74,384	83,941	85,633
Statement of changes in equity	Share capital	Share premium reserve	Revaluation reserve
---	---	---	---
Balance sheet as at 31 December 2008	13.329	157.955	-11.981
Comprehensive income for the period			4.911
Share-based payment			0
Balance sheet as at 31 December 2009	13.329	157.955	-7.070
Balance sheet as at 31 December 2009	13.329	157.955	-7.070
Comprehensive income for the period			3.235
Share-based payment
Dividends
Reduction of share premium reserve 1)		-75.000
Balance sheet as at 30 September 2010	13.329	82.955	-3.836

1) Decision of May 6th 2010. Registered as carried through in the Register of Business Enterprises October 14th 2010.

KEY FIGURES	30.09.2010		30.09.2009		31.12.2009
Equity ratio	29,9%		34,4%		34,0%
Equity/Capital employed	40,8%		42,5%		43,0%
Liquidity ratio I	1,6		2,0		2,0
Return on equity (annualised)	12,0%		35,7%		26,8%
Total return (annualised)	8,5%		18,1%		14,8%
Earnings per share	0,17		0,46		0,46
Diluted earnings per share	0,18		0,45		0,46
Cash flow from operations per share	0,47		0,67		1,04
Equity per share	1,92		1,90		1,93
Interest-bearing liabilities	370,831		343,110		341,803
Information on Business Areas 2):	30.09.2010	3Q 2010	30.09.2009	3Q 2009	31.12.2009
Ragasco - LPG Containers:
Operating income	319,313	133,683	351,925	122,005	451,688
Operating profit before depreciation (EBITDA)	81,078	35,310	98,602	33,092	117,531
Operating profit (EBIT)	45,015	19,774	70,772	24,795	80,948
Lincoln/Raufoss - High Pressure Containers:
Operating income	201,496	67,964	200,232	68,353	251,120
Operating profit before depreciation (EBITDA)	21,225	8,935	20,913	6,101	22,073
Operating profit (EBIT)	10,855	5,236	12,981	2,822	10,594
Devold AMT - Composite Reinforcements:
Operating income	92,841	37,326	132,205	35,571	166,501
Operating profit before depreciation (EBITDA)	-7,637	-82	230	958	-1,270
Operating profit (EBIT)	-14,637	-2,406	-5,994	-1,034	-9,838

2) Figures for the business areas do not include elimination of internal sales.