Tecnotree Oyj — Interim / Quarterly Report 2012

Oct 31, 2012

Tecnotree Corporation Interim Report Q3/2012

31st Oct, 2012

Tecnotree Group in Brief

Highlights for Q1-Q3 2012 (comparisons to the same period in 2011)

• Net sales for the first nine months were 51.0 M€ (46.2 M€) Net sales of Q3 were 19.7 M€ (17.2 M€)
• Record order backlog of 59.2 M€ (21.5 M€)
• At the end of June, the order backlog was 58.8 M€
• The adjusted EBIT was -4.6 M€ (0.3 M€)
• The Q3 figure was -0.8 M€ (1.9 M€)
• The reduction in the adjusted EBIT is due to higher costs in Q3
  • Initiation costs of new, large projects
  • Costs related to product development and sales development
  • Foreign exchange loss of 1.0 M€ in Q3
• Cash flow after investment was -6.3 M€ (-14.6 M€)
• The Q3 figure was -7.4 M€ (-2.5 M€)
  • The project payments are based on milestones, often requiring a project acceptance by the customer. There are high quarterly variations, depending on the milestones.

Financial Highlights

M€	1‒9/2012	1‒9/2011
Net sales	51.0	46.2
Adjusted operating result EBIT BEFORE R&D CAPITALISATION & AMORTISATION AND ONE-TIME COSTS	-4.6	0.3
Ebit	-8.7	-7.6
Net result	-10.7	-8.1
Order intake	69.9	53.0
Cash flow after investments	-6.3	-14.6
Net Cash Flow	-3.0	-8.8
Cash	3.7	7.8
Equity Ratio	46.1	56.6
Net Gearing	50.7	28.9

Net Sales by Area

Americas +36% ‒ Europe -6% ‒ MEA -5% ‒ APAC -21%

Sales and Orders

Adjusted Income Statement

EUR Million	1-9/2012	1-9/2011	Change %
Net sales	51.0	46.2	10.4
Other operating income	0.0	0.2
Total revenue	51.0	46.4	10.0
Adjusted operating expenses *)	-55.6	-46.1	20.6
Adjusted operating result	-4.6	0.3
- Net impact of R&D capitalizations	-4.1	-5.4	-23.7
- One-time costs		-2.4
Operating result	-8.7	-7.6	-15.3

*) Operating expenses less the net impact of the R&D capitalisations and one-time costs

Consolidated Balance Sheet

EUR Million	30.9.2012	30.9.2011	Change %
NON-CURRENT ASSETS
Fixed Assets	11.1	17.8	-37.4
Consolidated goodwill	19.3	19.8	-2.8
Other non-current assets	4.0	4.0	-2.2
CURRENT ASSETS
Inventories	1.5	1.0	51.0
Trade Receivables	21.5	22.5	-4.1
Other Receivables	34.2	31.8	7.6
Investments	0.0	0.9
Cash and Cash Equivalents	3.7	7.8	-52.1
TOTAL ASSETS	95.3	105.6	-9.7

Consolidated Balance Sheet

EUR Million	30.9.2012	30.9.2011	Change %
SHAREHOLDER'S EQUITY	43.9	58.6	-25.0
Interest-bearing liabilities	11.1	13.4	-16.8
Deferred tax liabilities	3.1	2.4	32.3
Other non-current liabilities	0.5	0.5	2.9
CURRENT LIABILITIES
Interest-bearing liabilities	14.9	12.2	21.8
Non-interest-bearing liabilities	21.7	18.5	17.3
EQUITY AND LIABILITIES	95.3	105.6	-9.7

Prospects for 2012

• Tecnotree estimates that net sales in 2012 will be higher than in 2011.
• The adjusted operating result is estimated to be negative due to increased costs and foreign exchange losses during the third quarter.
• The cash flow after investments is expected to improve compared to 2011.
• Variations in the quarterly figures will be considerable.
• The adjusted operating result is the operating result before R&D capitalization, amortization of this and onetime costs.

ADDITIONAL FINANCIAL INFORMATION FOR INVESTORS

Sales and Adjusted Operating Result

Adjusted operating result = Ebit before R&D capitalisation & amortisation and one-time costs

Consolidated Income Statement

EUR Million	1-9/2012	1-9/2011	Change %
Net sales	51.0	46.2	10.4
Other operating income	0.0	0.2
Materials and services	-10.4	-8.7	19.8
Employee benefit expenses	-24.5	-23.2	5.3
Depreciation	-5.5	-7.3	-24.3
Other operating expenses	-19.4	-14.8	31.2
Operating result	-8.7	-7.6	-15.3
Financial income and expenses	-1.9	0.9
Result after financial income and expenses	-10.6	-6.7	-59.2
Income taxes	-0.1	-1.4	-96.2
Result for the period	-10.7	-8.1	-32.2

Sales by Area Americas

Sales by Area Europe

Sales by Area MEA

Sales by Area APAC

Sales Distribution

Materials and Services

4 per. Mov. Avg. (%)

Employee Benefits

4 per. Mov. Avg. (%)

Other Operating Expenses

4 per. Mov. Avg. (%)

Assets by Quarter

Equity and Liabilities by Quarter

120 M€
100
80
60
40
20
0	Q3/10	Q4/10	Q1/11	Q2/11	Q3/11	Q4/11	Q1/12	Q2/12	Q3/12
Current non-interest bearing	13,2	14,2	13,4	16,9	18,5	17,6	14,3	16,3	21,7
Current interest bearing	2,2	5,2	8,2	12,2	12,2	15,8	14,8	14,8	14,9
Deferred tax	3,5	3,3	2,8	2,7	2,4	4,4	3,3	3,3	3,1
Long term non-interest bearing	0,9	0,4	0,5	0,5	0,5	0,4	0,4	0,4	0,5
Long term Interest bearing	15,6	14,5	14,5	13,4	13,4	12,2	12,2	11,1	11,1
Shareholders' equity	75,9	72,1	61,2	59,5	58,6	49,5	41,3	46,0	43,9