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Mycronic Interim / Quarterly Report 2015
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Interim / Quarterly Report
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MYCRONIC
When passion meets innovation
Q4
PRESS RELEASE 358E
Mycronic AB (publ),
Fourth quarter and full year 2015
About Mycronic
Mycronic AB is a high-tech Swedish company engaged in developing, manufacturing and marketing of production solutions to the electronics industry. Mycronic headquarters are located in Täby, north of Stockholm and the Group has subsidiaries in China, France, Germany, Japan, Singapore, South Korea, Taiwan, the Netherlands, United Kingdom and the US. For more information, see the company website www.mycronic.com.
Mycronic AB (publ) is listed on NASDAQ Stockholm, Mid Cap: MYCR.
This interim report is a translation of the Swedish version. In the event of any differences between this translation and the Swedish original version, the Swedish version shall have precedence.
MYCRONIC
Fourth quarter October-December 2015
- Order intake was SEK 838 (618) million
- Net sales were SEK 621 (656) million
- EBIT was SEK 251 (231) million
- Earnings per share were SEK 1.99 (2.37)
Full year January-December 2015
- Order intake was SEK 2,179 (2,028) million
- Net sales were SEK 1,815 (1,475) million
- EBIT was SEK 540 (277) million
- Earnings per share were SEK 4.52 (2.72)
Dividend
The Board proposes an ordinary dividend of SEK 1.50 (0.80) per share and an extraordinary dividend of SEK 2.50 (3.20) per share. The total dividends of SEK 4 (4) per share amount to SEK 391.7 (391.7) million.
Outlook
The Board's assessment is that sales in 2016 will be at the level of SEK 1,900 million.
Group summary
| SEK million | Oct-Dec 15 | Oct-Dec 14 | Jan-Dec 15 | Jan-Dec 14 |
|---|---|---|---|---|
| Order intake | 837.9 | 618.4 | 2,178.8 | 2,028.3 |
| Order backlog | 1,065.9 | 702.0 | 1,065.9 | 702.0 |
| Net sales | 621.3 | 656.4 | 1,815.0 | 1,475.0 |
| Gross profit | 404.7 | 368.0 | 1,075.6 | 711.7 |
| Gross margin | 65% | 56% | 59% | 48% |
| EBIT | 251.4 | 231.0 | 540.3 | 276.5 |
| EBIT margin | 40% | 35% | 30% | 19% |
| Earnings per share, SEK | 1.99 | 2.37 | 4.52 | 2.72 |
| Cash flow | 199.6 | 181.7 | 232.6 | 154.4 |
2015 - stable performance
"Strong fourth quarter is the culmination of a year of stable growth, a year to be proud of. Never have system or aftermarket sales been higher. Growth was 23 percent. The results demonstrate that the product development strategy is correct. This is especially gratifying during a year when the global market for SMT equipment has experienced a decline. The operating margin reached 40 percent in the fourth quarter and 30 percent for the whole year. And we moved into 2016 with an order backlog exceeding SEK 1 billion. At the same time, through investments in product development, we have taken steps to reach our established goals for growth and profitability in the coming years," says Lena Olving, CEO and President of Mycronic AB.
Mycronic's launches of innovative production solutions for effective electronics production have led to an increase in demand within both of Mycronic's business areas, which has strengthened the company's market and financial positions. During the fourth quarter, the latest new equipment for dispensing several types of fluids was introduced. Mycronic's Jet Dispenser, which builds on the jet printing platform, is significantly faster than existing dispensing solutions and targets new segments on the SMT market. By broadening the product offering to other segments,
opportunities are created for a position shift, which is in line with the company's strategy for growth.
During 2015, Mycronic received orders for a total of nine mask writers for different applications. Demand for the most high resolution mobile displays is on the rise, which increases photomask complexity. Mycronic's most advanced mask writer, the Prevision-80 (P-80), is indispensable for this manufacturing. During 2015, the company delivered a P-80 and received an order for an additional system.
The company's replacement offering for customers with older mask writers for display manufacturing was also positively received, with three orders in 2015.
"Besides maintaining and developing our existing offering, we have started an initiative to make the technology leap necessary to develop products for new and future needs within SMT. By collaborating with a high tech engineering company in Asia, we complement our unique competence with specific technological and market competence for new customer requirements," says Lena Olving.
Fourth quarter 2015, page 2 of 12
MYCRONIC
Group financial performance
Fourth quarter October-December 2015
The consolidated order intake for the fourth quarter was SEK 838 (618) million. The order intake comprised two mask writers for advanced display applications, SMT equipment and aftermarket. During the fourth quarter 2014, an order for an advanced mask writer for display applications was received.
Net sales for the fourth quarter amounted to SEK 621 (656) million and were positively impacted by currency effects in the amount of SEK 70 million, most of which related to a stronger dollar. Recalculated to the same exchange rates which prevailed during the corresponding period last year, sales amounted to SEK 551 million. Aftermarket sales remained stable.
During the fourth quarter, an advanced mask writer was delivered, and orders for two more advanced mask writers were received. The order backlog at year-end was SEK 1,066 (702) million.
Consolidated gross profit reached SEK 405 (368) million, which corresponds to a gross margin of 65 (56) percent. The improved margin compared with last year can be explained by several factors, such as the delivery of an advanced mask writer and positive currency effects among other things.
Consolidated EBIT for the fourth quarter reached SEK 251 (231) million, which corresponds to an operating margin of 40 (35) percent. EBIT was negatively affected by higher development costs but also positively affected by the good gross profit including currency effects.
Consolidated costs for development, sales and administration were SEK 148 (143) million. Development expenditures were SEK 21 million higher, the result of increased efforts within product development for SMT. During the fourth quarter SEK 5 (-) million were capitalized within SMT. Amortization of previously capitalized development was SEK 3 (3) million.
Other income/costs amounted to SEK -5 (6) million, and relate primarily to foreign exchange differences during the fourth quarter.
Order intake and net sales, rolling 4 quarters
Margins, rolling 4 quarters
Fourth quarter 2015, page 3 of 12
MYCRONIC
Group financial performance full year
January-December 2015
The consolidated order intake for 2015 amounted to SEK 2,179 (2,028) million. The order intake comprised nine mask writers within several different application areas, SMT equipment, and aftermarket. During the previous year orders for eight mask writers were received, of which two were for advanced systems for display manufacturing.
The order backlog at year-end was SEK 1,066 million. At the end of 2014 the order backlog was SEK 702 million. The order backlog comprises deliveries for both 2016 and 2017.
Net sales in 2015 were SEK 1,815 (1,475) million. The increase in sales stems from both business areas and was positively impacted by currency effects in the amount of SEK 199 million, of which the greatest proportion related to a stronger dollar. Recalculated to the same exchange rates which prevailed last year, sales were SEK 1,616 million. Sales included three mask writers, of which two were advanced systems for display applications. Aftermarket sales remained stable.
Consolidated gross profit was SEK 1,076 (712) million, which corresponds to a gross margin of 59 (48) percent. The improved margin compared with last year's is due to higher sales volumes, the delivery of two advanced mask writers, a favorable product mix within SMT, and positive currency effects.
EBIT was SEK 540 (277) million, which corresponds to an operating margin of 30 (19) percent. EBIT was charged with higher operating costs. For example, the company has increased its manufacturing capacity as a result of higher sales volumes, in line with growth targets. At the same time, operating profit was positively affected by sales of two advanced mask writers and currency effects.
Consolidated development expenditures were SEK 67 million higher, which in part results from increased efforts and a higher pace within product development for new markets and new customer requirements within SMT. During the year SEK 8 (11) million were capitalized within SMT. Amortization of previously capitalized development was SEK 12 (10) million.
Variable selling costs increase with higher sales volumes. During the year Mycronic participated in several international exhibitions, including Productronica, which takes place every other year. The company's sales organization has also been expanded. Costs for administration include activities and efforts to enable future growth as well as branding activities.
Other income amounted to SEK 3 (16) million and related primarily to currency exchange gains.
The consolidated tax cost was SEK 98 (12) million. During 2015 capitalized loss carryforwards of SEK 331 million, which corresponds to deferred tax assets of SEK 73 million, were used. Also previously not capitalized loss carryforwards of SEK 119 million were used, which has had a positive impact on tax costs for the year in the amount of SEK 26 million. At year-end 2015 all loss carryforwards in Sweden had been utilized.
Cash flow and financial position
Consolidated cash and cash equivalents at the end of 2015 were SEK 898 (661) million. Cash flow during the year was SEK 233 (154) million. Dividends in the amount of SEK 392 million, as decided by the AGM, were paid out during the second quarter.
Cash flow from operations was SEK 662 (418) million, which can be explained by positive results as well as by a reduction in working capital. The decrease in working capital is mainly attributable to customer payments in the form of decrease in trade receivables and an increase in advance payments.
Investing activities claimed SEK 37 (18) million, of which SEK 8 (11) million related to capitalized development within SMT.
Equity
Consolidated equity at the end of 2015 was SEK 1,268 million, compared to SEK 1,207 million at the end of 2014. The number of outstanding shares at year-end was 97,916,509. Earnings per share were SEK 4.52 (2.72).
Fourth quarter 2015, page 4 of 12
MYCRONIC
| Business area SMT
SEK million | Oct-Dec 15 | Oct-Dec 14 | Jan-Dec 15 | Jan-Dec 14 |
| --- | --- | --- | --- | --- |
| Order intake and sales | | | | |
| Order intake | 202.4 | 204.6 | 829.4 | 755.8 |
| Order backlog | 51.8 | 66.0 | 51.8 | 66.0 |
| Income from external customers | 220.5 | 229.8 | 843.6 | 741.9 |
| Results | | | | |
| Gross profit | 96.2 | 108.0 | 383.7 | 330.6 |
| Gross margin | 44% | 47% | 45% | 45% |
| EBIT | -18.3 | 19.1 | -16.4 | 54.5 |
| EBIT margin | -8% | 8% | -2% | 7% |
| Development costs | -69.1 | -44.0 | -224.8 | -126.8 |
Financial performance January-December 2015
The order intake was SEK 829 (756) million in 2015, an increase of 10 percent compared with last year. Several launches of new products and new functionality have taken place over the last two years, which resulted in increased demand for Mycronic's products and services.
Net sales amounted to SEK 844 (742) million, an increase of 14 percent compared with last year. Sales were impacted positively by currency effects in the amount of SEK 93 million. Recalculated to the same exchange rates which prevailed during 2014, sales amounted to SEK 750 million. Mycronic has strengthened its market position on the globally declining market for SMT equipment, while maintaining its margins. Machine sales consisted of 80 (85) percent surface mount systems and 20 (15) percent machines for application of solder paste.
Gross profit amounted to SEK 384 (331) million, which corresponds to a sustained gross margin of 45 percent. The gross margin was impacted positively by a favorable product mix and currency effects.
EBIT was SEK -16 (54) million, which corresponds to an operating margin of -2 (7) percent. Development expenditures were SEK 93 million higher than for the previous year. Mycronic has increased efforts within SMT, in line with its strategy for product development. During the third quarter, the company entered into a partnership agreement with a high tech engineering company in Asia in order to increase the pace of broadening product offerings to cover new markets and new requirements.
Development was capitalized in the amount of SEK 8 (11) million while amortization of previously capitalized development amounted to SEK 12 (10) million.
Market development
The global electronics industry grew 4 percent in 2014 to USD 1,759 billion. In early 2015 growth of 3 percent was forecast. During the fourth quarter 2015, the forecast was adjusted downwards to a weak negative trend of -0.6 percent, corresponding to turnover in the amount of USD 1,750 billion (Prismark, December 2015).
The semiconductor market is a part of the electronics industry and affects demand for SMT equipment. When semiconductor volumes increase, capacity requirements increase, and demand for SMT equipment normally rises. The semiconductor market grew 10 percent in 2014. During the first three quarters of 2015, growth was 2 percent. With reference to expected weak trend for leading system manufacturers, zero growth is predicted for whole-year 2015 (Prismark, December 2015).
The global market for SMT equipment grew 22 percent in 2014 to USD 2.3 billion. In 2015 the market declined 19 percent to a turnover of USD 1.9 billion. The decline began during the second quarter and can be linked mainly to weakening markets in Asia, except for Japan which grew but from low levels (PROTEC MDC, January 2016).
During 2015, Mycronic launched Mycronic 4.0, a complete, flexible production solution for handling complexity in modern electronics manufacturing and enables an automated, smart factory for just-in-time production. Within the Mycronic 4.0 framework, functionality for the next generation of material handling was launched, which means fewer manual process steps and improved inventory control. During the international Productronica exhibition, equipment for fast, non-contact dispensing of a broad spectrum of fluids such as adhesives, with applications within both the surface mount and semiconductor industries, was introduced. The equipment builds on the unique MY600 jet printing platform and is significantly faster than traditional dispensing equipment. These launches, together with the launches completed during 2014, have resulted in a broader product offering for flexible electronics production.
The market for SMT equipment is hard to assess for 2016. The trend is affected by growth within the electronics industry, by developments on the semiconductor market and by uncertainties in the general world economy.
Fourth quarter 2015, page 5 of 12
MYCRONIC
| Business area PG
SEK million | Oct-Dec 15 | Oct-Dec 14 | Jan-Dec 15 | Jan-Dec 14 |
| --- | --- | --- | --- | --- |
| Order intake and sales | | | | |
| Order intake | 635.5 | 413.8 | 1,349.4 | 1,272.5 |
| Order backlog | 1,014.0 | 636.0 | 1,014.0 | 636.0 |
| Income from external customers | 400.9 | 426.7 | 971.4 | 733.1 |
| Results | | | | |
| Gross profit | 308.4 | 260.0 | 691.9 | 381.1 |
| Gross margin | 77% | 61% | 71% | 52% |
| EBIT | 270.2 | 212.3 | 558.6 | 226.2 |
| EBIT margin | 67% | 50% | 58% | 31% |
| Development costs | -11.1 | -19.8 | -41.9 | -68.6 |
Financial performance January-December 2015
The order intake for 2015 amounted to SEK 1,349 (1,272) million and comprised nine mask writers and aftermarket. Two orders were for systems for advanced display applications, three systems replaced older systems for manufacturing of display photomasks and four orders were for mask writers for other applications than displays. The order intake for 2014 comprised eight mask writers, of which two were advanced systems for display manufacturing.
The order backlog reached SEK 1,014 million, and comprised nine mask writers with deliveries scheduled for 2016 and 2017. Delivery capacity for mask writers for advanced display applications is fully booked for 2016.
Net sales of SEK 971 (733) million comprised deliveries of two advanced mask writers for display applications, an FPS for applications other than display, as well as aftermarket. Sales were impacted positively by currency effects in the amount of SEK 105 million. Recalculated to the same exchange rates which prevailed during 2014, sales amounted to SEK 866 million.
Gross profit reached SEK 692 (381) million, which corresponds to a gross margin of 71 (52) percent. The increase is mainly due to deliveries of two advanced mask writers and by positive currency effects.
EBIT amounted to SEK 559 (226) million, which can be explained by the delivery of two advanced mask writers, and by lower costs for development, SEK 27 million lower than for the previous year. LDI-related development costs ceased 2014. Development activities include development of measuring functionality among other things. The operating margin for 2015 was 58 (31) percent.
Market development
The trend on the display market was weaker for whole-year 2015 than initially forecast. Growth is now assessed at -3 percent. Turnover is estimated to reach USD 127 billion. The number of displays produced is forecast to fall by 2 percent to approximately 3.7 billion units (IHS, January 2016). Some of the reasons behind this decline were lower sales of displays for laptops and tablets, a strong dollar, and a discernible slowdown of demand from China. Some segments, however, demonstrate growth, for example, high resolution mobile displays and UHD TV (4K), TV displays with ultra-high resolution.
The good demand for photomasks for small and large displays is driven in the short-term by the number of different display models, the development pace, as well as the number of manufacturing lines, more than by the number of displays sold. Display manufacturers' profitability, however, is important for the motivation and ability to drive technology development and affects demand for photomasks in the long-term. Some display manufacturers also produce electronics products and look at profitability for the entire product, and not just displays.
There are currently several factors affecting the photomask market positively. Demand for high resolution displays is driving technology development, which in turn drives demand for complex photomasks. This trend is expected to continue. Manufacturing capacity for displays in China is increasing, despite the beginnings of a global slowdown in demand, through new factories being brought into production and through existing factories increasing their manufacturing capacity in order to reduce import. Additional factors behind the increase in photomask demand are the growing number of different types of displays, for example bendable displays as well as the types used in cars and smart watches.
The degree of utilization on Mycronic's mask writers is stable at high levels. The assessment is that production during 2015 was near customers' maximum production capacity. For the period 2015-2018, the number of photomasks for display manufacturing is estimated to demonstrate annual growth of 4 percent. Turnover is expected to increase from USD 590 million to USD 630 million (IHS, January 2015). Demand for photomasks is good for both small and large displays. The increase in demand for the most complex photomasks for
Fourth quarter 2015, page 6 of 12
MYCRONIC
very high resolution displays is driving demand for Prevision-80 capacity. Through Mycronic's replacement offering, several customers are replacing older mask writers for a new scalable system built on the Prevision platform.
Demand for larger photomasks within the multi-purpose market for applications other than displays is good as it addresses several application areas. Mycronic's assessment is that the market will reach USD 10-14 million per year, but with a great deal of variation from year to year and within various application areas.
Other
Parent company
Mycronic AB is the Group's parent company. Product development and sales of mask writers are conducted through the parent company.
The parent company's sales for 2015 reached SEK 1,004 (729) million and comprise sales of three mask writers. EBIT was SEK 552 (236) million. Research and development expenditures are expensed as they occur.
Cash and cash equivalents at year-end were SEK 759 million, compared to SEK 517 million at the end of 2014. During the second quarter, dividends amounting to SEK 392 million were paid out.
Employees
At the end of 2015, Mycronic had 501 (511) employees in 10 countries. During 2015, Mycronic worked proactively with diversity. Three of seven executives within R&D are now women. During 2015, the number of female managers within the Group rose from 20 to 23 percent. These are indicators that the diversity activities have yielded results.
Events after year-end
Mycronic received two orders for mask writers in January 2016. One order was for the first newly developed Prevision-MMS measuring system and one order was for a scaled-down Prevision-8.
Risks and uncertainty factors
There are a number of risks and uncertainty factors of an operational and financial character to which the group is exposed. These are described in the 2014 annual report. No new major risks have occurred since publication of the 2014 annual report.
Those risks which are most prominent in the short term relate to the results of efforts within development and launches within new product areas.
Accounting policies
This interim report for the Group has been prepared in accordance with IAS 34, Interim Financial Reporting, and applicable parts of the Annual Accounts Act. The report for the parent company has been prepared in accordance with Chapter 9 of the Annual Accounts Act.
For the Group and the parent company, the same accounting principles, estimates and assumptions have been used in this report as were used in the most recent annual report.
The character of financial assets and liabilities are essentially the same as they were on 31 December, 2014. As was the case at the end of 2014, reported values are the same as fair values.
Nomination committee
The composition of the nomination committee for the 2016 AGM is:
Henrik Blomquist, Bure
Katja Bergqvist, Handelsbanken Fonder
Thomas Ehlin, Fjärde AP-fonden
Ulf Strömsten, Catella Fonder
Patrik Tigerschiöld, Chairman of the Board
The nomination committee is tasked with putting forth proposals for board members and board chairman, and for remuneration of board members and auditor.
The 2016 AGM will be held on 3 May.
Proposal on dividend according to policy
In accordance with the dividend policy, the Board proposes to the AGM a dividend of SEK 1.50 (0.80) per share, amounting to SEK 146.9 (78.3) million.
Proposal on extraordinary dividend
The Board proposes to the AGM an extraordinary dividend of SEK 2.50 (3.20) per share, amounting to SEK 244.8 (313.3) million.
This would bring the total dividend up to SEK 4 per share, totaling SEK 391.7 million. A record date of 6 May, 2016 will be proposed, with an estimated payout on 11 May, 2016.
If the AGM decides in favor of the board's proposals, then the company will have paid extraordinary dividends in the amount of SEK 802.9 million during the period 2014 to 2016. This has been done to adjust the capital structure. The Board's current assessment is that these adjustments now have been done. The company intends to invest in acquisitions and in development in the coming years to ensure continued growth. The Board intends, therefore, to put forth proposals for future dividends in accordance with the dividend policy.
Financial information
Mycronic AB (publ) is listed on NASDAQ Stockholm, Mid Cap, MYCR.
The information in this report is published in accordance with the Financial Instruments Trading Act and/or Swedish Securities Market Act. The information was submitted for publication on 4 February, 2016, at 8 am.
Fourth quarter 2015, page 7 of 12
MYCRONIC
Financial reports and press releases are published in Swedish and English and are available on the website www.mycronic.com.
This report has not been reviewed by the company's auditor.
Annual report
An annual overview is distributed to shareholders who have indicated that they wish to receive a printed version. On the website Mycronic publishes the complete annual report as a Pdf version and a web version for those who prefer digital reading. The annual report will be published on the website on 6 April at the latest.
Financial calendar
Interim report January-March 2016 21 April, 2016
AGM 2016 3 May, 2016
Interim report January-June 2016 13 July, 2016
Interim report January-September 20 October, 2016
Contacts at Mycronic:
Lena Olving
President and CEO
+46 8 - 638 52 00
[email protected]
Per Ekstedt
CFO
+46 8 - 638 52 00
[email protected]
Täby, 4 February, 2016
Lena Olving
President and CEO
Mycronic's vision
The business partner of choice, enabling the future of electronics.
Mycronic's mission
We aim to be the market leader within our key segments across the globe.
We continuously improve and develop innovative solutions, products and services to meet the changing needs of our customers.
We do not compromise with our goal to deliver sustainable growth, profitability and shareholder value.
We meet our challenging goals by engaging the passion and talent of people dedicated to deliver.
Mycronic's long-term financial objectives
Growth
Consolidated net sales will reach SEK 2 billion at the end of the period covered by the business plan.
Profitability
Over time EBIT (earnings before interest and tax) will exceed 10 percent of net sales over a business cycle.
Capital structure
Net debt will be less than 3 times the average EBITDA (earnings before depreciation, amortization, interest and tax).
Mycronic's dividend policy
The objective of the company is to provide both good returns and value growth. Between 30 and 50 percent of net profit will be distributed to the shareholders, provided the company has a net debt lower than 3 times EBITDA after stipulated dividend. On each occasion the financial position, profitability trend, growth potential and future investment requirements of the company shall be taken into account.
Mycronic AB
| Mycronic AB
PO Box 3141
SE-183 03 Täby
Sweden | Visit/Delivery:
Nytorpsvägen 9
SE-183 71 Täby
Sweden | Tel: +46 8 638 52 00
Fax: +46 8 638 52 90 | [email protected]
www.mycronic.com | Reg office: Stockholm
Reg no: 556351-2374
Vat no: SE556351237401 |
| --- | --- | --- | --- | --- |
Fourth quarter 2015, page 8 of 12
MYCRONIC
| Consolidated profit and loss accounts, SEK million | Oct-Dec 15 | Oct-Dec 14 | Jan-Dec 15 | Jan-Dec 14 |
|---|---|---|---|---|
| Net sales | 621.3 | 656.4 | 1,815.0 | 1,475.0 |
| Cost of goods sold | -216.6 | -288.4 | -739.4 | -763.3 |
| Gross profit | 404.7 | 368.0 | 1,075.6 | 711.7 |
| Research and development expenses | -80.2 | -63.8 | -266.7 | -197.7 |
| Selling expenses | -42.4 | -46.2 | -180.0 | -163.9 |
| Administrative expenses | -25.1 | -33.2 | -91.1 | -90.0 |
| Other income and expenses | -5.5 | 6.1 | 2.6 | 16.4 |
| EBIT | 251.4 | 231.0 | 540.3 | 276.5 |
| Financial income and expenses | 0.1 | 0.3 | 0.2 | 1.6 |
| Profit/loss before tax | 251.5 | 231.3 | 540.5 | 278.1 |
| Tax | -56.2 | 1.2 | -98.0 | -11.8 |
| Net profit/loss | 195.3 | 232.5 | 442.5 | 266.2 |
| Earnings/share, SEK | 1.99 | 2.37 | 4.52 | 2.72 |
| Average number of shares, thousand | 97,917 | 97,917 | 97,917 | 97,917 |
| Consolidated comprehensive income, SEK million | Oct-Dec 15 | Oct-Dec 14 | Jan-Dec 15 | Jan-Dec 14 |
| Net profit/loss | 195.3 | 232.5 | 442.5 | 266.2 |
| Other comprehensive income | ||||
| Items not to be reclassified to profit/loss, after tax | ||||
| Actuarial loss from defined benefits to employees | -5.2 | - | -5.2 | - |
| Items to be reclassified to profit/loss, after tax | ||||
| Translation differences at translating foreign entities | -1.4 | 6.5 | 15.7 | 20.8 |
| Changes in cash flow hedges | 4.9 | 2.3 | -0.1 | -0.6 |
| Total comprehensive income | 193.6 | 241.3 | 452.8 | 286.5 |
The entire results are attributable to owners of the Parent Company.
| Research and development costs, SEK million | Oct-Dec 15 | Oct-Dec 14 | Jan-Dec 15 | Jan-Dec 14 |
|---|---|---|---|---|
| R&D expenditure | ||||
| SMT equipment | -71.0 | -40.9 | -220.5 | -127.3 |
| Pattern generators | -11.1 | -19.8 | -41.9 | -68.6 |
| -82.1 | -60.7 | -262.4 | -195.9 | |
| Capitalization of development | ||||
| SMT equipment | 4.9 | - | 8.0 | 10.8 |
| Amortization of capitalized development | ||||
| SMT equipment | -3.1 | -3.1 | -12.3 | -10.3 |
| 1.9 | -3.1 | -4.3 | 0.5 | |
| Amortization of acquired technology | - | - | - | -2.3 |
| R&D costs | -80.2 | -63.8 | -266.7 | -197.7 |
| Revenue by geographical market, SEK million | Oct-Dec 15 | Oct-Dec 14 | Jan-Dec 15 | Jan-Dec 14 |
| EMEA | 115.7 | 115.6 | 423.8 | 384.9 |
| Americas | 73.0 | 96.9 | 310.5 | 287.2 |
| Asia | 432.5 | 443.9 | 1,080.6 | 802.9 |
| 621.3 | 656.4 | 1,815.0 | 1,475.0 |
Fourth quarter 2015, page 9 of 12
MYCRONIC
| Consolidated cash flow statements, SEK million | Oct-Dec 15 | Oct-Dec 14 | Jan-Dec 15 | Jan-Dec 14 |
|---|---|---|---|---|
| Cash flow from operations before changes in working capital | 261.6 | 291.8 | 550.5 | 335.7 |
| Changes in working capital | -44.9 | -110.5 | 110.9 | 81.9 |
| Cash flow from operations | 216.7 | 181.3 | 661.4 | 417.6 |
| Cash flow from investing activities | -17.1 | 0.3 | -37.2 | -18.4 |
| Cash flow from financing activities | 0.0 | 0.0 | -391.7 | -244.8 |
| Cash flow | 199.6 | 181.6 | 232.6 | 154.4 |
| Cash and cash equivalents, opening balance | 699.9 | 473.1 | 661.0 | 487.3 |
| Exchange differences | -1.8 | 6.2 | 4.2 | 19.2 |
| Cash and cash equivalents, closing balance | 897.7 | 661.0 | 897.7 | 661.0 |
| Consolidated statements of financial position, | ||||
| --- | --- | --- | ||
| SEK million | 31 Dec 15 | 31 Dec 14 | ||
| ASSETS | ||||
| Fixed assets | ||||
| Intangible assets | 122.9 | 129.0 | ||
| Tangible assets | 38.1 | 28.1 | ||
| Long-term receivables | 40.1 | 28.1 | ||
| Deferred tax assets | 40.9 | 100.8 | ||
| Total fixed assets | 242.0 | 286.0 | ||
| Current assets | ||||
| Inventories | 275.9 | 232.7 | ||
| Trade receivables | 271.1 | 341.0 | ||
| Other current receivables | 55.4 | 79.0 | ||
| Cash and cash equivalents | 897.7 | 661.0 | ||
| Current assets | 1,500.2 | 1,313.7 | ||
| Total assets | 1,742.2 | 1,599.8 | ||
| EQUITY AND LIABILITIES | ||||
| Equity | 1,268.2 | 1,207.1 | ||
| Liabilities | ||||
| Other long-term liabilities | 21.0 | 11.0 | ||
| Deferred tax liabilities | 15.3 | 5.0 | ||
| Total non-current liabilities | 36.3 | 16.0 | ||
| Trade payables | 90.9 | 75.7 | ||
| Other current liabilities | 346.8 | 301.0 | ||
| Total current liabilities | 437.7 | 376.6 | ||
| Total liabilities | 474.0 | 392.7 | ||
| Total equity and liabilities | 1,742.2 | 1,599.8 | ||
| Consolidated statements of changes in equity, SEK million | Jan-Dec 15 | Jan-Dec 14 | ||
| Opening balance | 1,207.1 | 1,165.4 | ||
| Dividend | -391.7 | -244.8 | ||
| Total comprehensive income | 452.8 | 286.5 | ||
| Closing balance | 1,268.2 | 1,207.1 |
Fourth quarter 2015, page 10 of 12
MYCRONIC
| Financial key figures | Jan-Dec 15 | Jan-Dec 14 |
|---|---|---|
| Order intake | 2,178.8 | 2,028.3 |
| Net sales | 1,815.0 | 1,475.0 |
| Order backlog | 1,065.9 | 702.0 |
| Gross margin | 59.3% | 48.3% |
| EBIT margin | 29.8% | 18.7% |
| Return on equity | 35.8% | 22.4% |
| Equity/total assets | 72.8% | 75.5% |
| Equity/average number of shares | 13.0 | 12.3 |
| Average number of employees | 495 | 508 |
| Capital spending | ||
| Capitalized development | 8.0 | 10.8 |
| Other capital spending | 29.2 | 7.6 |
| The Mycronic share | ||
| Closing share price | 82.25 | 24.80 |
| Market cap | 8,053.6 | 2,428.3 |
| Quarterly data | Q 4-15 | Q 3-15 |
| --- | --- | --- |
| Order intake SMT | 202.4 | 202.3 |
| Order intake PG | 635.5 | 356.3 |
| 837.9 | 558.6 | |
| Sales SMT | 220.5 | 207.3 |
| Sales PG | 400.9 | 397.6 |
| 621.3 | 604.9 | |
| Gross profit SMT | 96.2 | 99.0 |
| Gross profit PG | 308.4 | 293.8 |
| 404.7 | 392.8 | |
| Gross margin SMT | 44% | 48% |
| Gross margin PG | 77% | 74% |
| 65% | 65% | |
| Research and development expenses | -80.2 | -61.8 |
| Selling expenses | -42.4 | -44.5 |
| Administrative expenses | -25.1 | -22.1 |
| Other income and expenses | -5.5 | -2.4 |
| EBIT | 251.4 | 261.9 |
| Segment reporting, SEK million | Oct-Dec 15 | Oct-Dec 14 |
| --- | --- | --- |
| Income from external customers | ||
| SMT | 220.5 | 229.8 |
| PG | 400.9 | 426.7 |
| 621.3 | 656.4 | |
| EBIT | ||
| SMT | -18.3 | 19.1 |
| PG | 270.2 | 212.3 |
| Amortization of acquired intangible assets | -0.5 | -0.5 |
| Group | 251.4 | 231.0 |
Fourth quarter 2015, page 11 of 12
MYCRONIC
| Income statements, Parent company, SEK million | Oct-Dec 15 | Oct-Dec 14 | Jan-Dec 15 | Jan-Dec 14 |
|---|---|---|---|---|
| Net sales | 404.9 | 413.0 | 1,003.7 | 729.2 |
| Cost of goods sold | -120.1 | -172.9 | -339.8 | -379.6 |
| Gross profit | 284.8 | 240.1 | 663.9 | 349.6 |
| Research and development expenses | -12.1 | -20.8 | -41.0 | -68.0 |
| Selling expenses | -8.7 | -7.9 | -30.5 | -30.5 |
| Administrative expenses | -12.1 | -14.0 | -35.6 | -34.8 |
| Other income and expenses | 3.4 | 12.0 | -4.6 | 19.9 |
| EBIT | 255.3 | 209.4 | 552.2 | 236.3 |
| Result from financial investments | 0.0 | 0.3 | 0.2 | 1.7 |
| Profit/loss after financial items | 255.3 | 209.7 | 552.4 | 238.0 |
| Appropriations | -114.0 | 0.0 | -114.0 | 0.0 |
| Profit/loss before tax | 141.3 | 209.7 | 438.4 | 238.0 |
| Tax | -29.4 | 6.5 | -71.6 | 0.3 |
| Net profit/loss | 111.9 | 216.3 | 366.8 | 238.4 |
| Statements of comprehensive income, SEK million | Oct-Dec 15 | Oct-Dec 14 | Jan-Dec 15 | Jan-Dec 14 |
| Net profit/loss | 111.9 | 216.3 | 366.8 | 238.4 |
| Other comprehensive income | ||||
| Items to be reclassified to profit and loss, after tax | ||||
| Translation differences | - | 0.3 | 0.5 | 0.7 |
| Total comprehensive income | 111.9 | 216.6 | 367.3 | 239.2 |
| Balance sheets, Parent company, SEK million | 31 Dec 15 | 31 Dec 14 | ||
| ASSETS | ||||
| Fixed assets | ||||
| Intangible and tangible assets | 30.5 | 21.9 | ||
| Financial assets | ||||
| Participation in group companies | 365.5 | 365.5 | ||
| Receivables from group companies | 0.0 | 4.3 | ||
| Other non-current receivables | 25.5 | 16.7 | ||
| Deferred tax receivables | 1.8 | 63.5 | ||
| Total financial assets | 392.7 | 450.0 | ||
| Total fixed assets | 423.2 | 471.9 | ||
| Current assets | ||||
| Inventories | 13.2 | 6.7 | ||
| Current receivables | ||||
| Trade receivables | 43.8 | 95.8 | ||
| Receivables from group companies | 88.0 | 131.7 | ||
| Other current receivables | 23.1 | 44.1 | ||
| Total current receivables | 154.9 | 271.6 | ||
| Cash and cash equivalents | 759.0 | 517.1 | ||
| Total current assets | 927.1 | 795.4 | ||
| Total assets | 1,350.3 | 1,267.3 | ||
| EQUITY AND LIABILITIES | ||||
| Equity | 1,051.7 | 1,076.0 | ||
| Untaxed reserves | 25.0 | - | ||
| Other non-current liabilities | 0.2 | 0.1 | ||
| Trade payables | 21.1 | 11.3 | ||
| Liabilities to group companies | 5.4 | 7.4 | ||
| Current liabilities | 246.9 | 172.5 | ||
| Total liabilities | 273.6 | 191.2 | ||
| Equity and liabilities | 1,350.3 | 1,267.3 | ||
| Pledged assets | 89.0 | 89.0 |
Fourth quarter 2015, page 12 of 12