Tecnotree Oyj — Interim / Quarterly Report 2013

Aug 14, 2013

Tecnotree Corporation Interim Report Q2/2013

14th Aug 2013

Tecnotree Group in Brief

Highlights for Q2 & H1 2013 (comparisons to Q2 & H1 2012)

Q2 2013

• Net sales 22.5 M€ (21.3 M€), a new quarterly record
• Adjusted EBIT 2.7 M€ (2.0 M€)
• EBIT 2.2 M€ (0.6 M€)
• Only 0.6 M€ capitalised R&D expenses left in the balance sheet
• Cash flow after investments -6.5 M€ (0.8 M€)

H1 2013

• Net sales 36.4 M€ (31.3 M€)
• Adjusted EBIT -1.3 M€ (-3.8 M€)
• Low net sales in Q1, typical of Tecnotree, resulted in adjusted EBIT of -4.0 M€ in Q1
• EBIT -2.4 M€ (-6.7 M€)
• Cash flow after investments was -5.0 M€ (1.1 M€)
• Q1 cash flow after investments was 1.6 M€ positive. There are considerable quarterly variations in payments received from the customers, depending on the situation of the projects.

Long-term financing arrangement agreed with Nordea bank

5 MEUR additional financing

Good prospects in the key markets in MEA and Latin America

Financial Highlights

M€	1‒6/2013	1‒6/2012
Net sales	36.4	31.3
Adjusted operating result EBIT BEFORE R&D CAPITALISATION & AMORTISATION AND ONE-TIME COSTS	-1.3	-3.8
Ebit	-2.4	-6.7
Net result	-3.4	-7.7
Order intake	35.5	49.7
Cash flow after investments	-5.0	1.1
Net Cash Flow	-7.2	4.4
Cash	3.8	11.0
Equity Ratio	38.0	50.0
Net Gearing	77.4	32.4

Net Sales by Area

Americas + 16% Europe - 33% MEA + 42% APAC - 24%

Sales and Orders

Adjusted Income Statement

EUR Million	1-6/2013	1-6/2012	Change %
Net sales	36.4	31.3	16.4
Other operating income	0.0	0.0
Total revenue	36.4	31.3	16.4
Adjusted operating expenses*)	-37.7	-35.1	7.4
Adjusted operating result	-1.3	-3.8	66.7
- Net impact of R&D capitalizations	-1.1	-2.8	-59.7
- One-time costs
Operating result	-2.4	-6.7	63.7

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

Consolidated Income Statement

EUR Million	1-6/2013	1-6/2012	Change %
Net sales	36.4	31.3	16.4
Other operating income	0.0	0.0
Materials and services	-7.3	-5.9	24.7
Employee benefit expenses	-17.2	-15.6	10.5
Depreciation	-2.1	-3.9	-46.1
Other operating expenses	-12.2	-12.6	-3.2
Operating result	-2.4	-6.7	63.7
Financial income and expenses	1.0	-0.9
Result after financial income and expenses	-1.4	-7.6	81.1
Income taxes	-1.9	-0.1
Result for the period	-3.4	-7.7	56.2

Consolidated Income Statement

4-6/2013 vs. 4-6/2012

EUR Million	4-6/2013	4-6/2012	Change %
Net sales	22.5	21.3	5.6
Other operating income	0.0	0.0
Materials and services	-3.6	-4.0	-7.7
Employee benefit expenses	-8.5	-7.8	8.1
Depreciation	-1.0	-1.9	-45.3
Other operating expenses	-7.2	-7.0	1.9
Operating result	2.2	0.6	275.2
Financial income and expenses	2.0	-0.2
Result after financial income and expenses	4.2	0.4
Income taxes	-2.1	0.8
Result for the period	2.1	1.2	79.8

Consolidated Balance Sheet

EUR Million	30.6.2013	30.6.2012	Change %
NON-CURRENT ASSETS
Fixed Assets	5.9	12.3	-52.3
Consolidated goodwill	16.5	18.9	-12.7
Other non-current assets	2.8	3.3	-15.1
CURRENT ASSETS
Inventories	1.2	1.1	8.8
Trade Receivables	17.2	17.6	-2.7
Other Receivables	24.8	27.7	-10.3
Investments	0.9	0.0
Cash and Cash Equivalents	3.8	11.0	-65.7
TOTAL ASSETS	73.0	91.9	-20.6

Consolidated Balance Sheet

EUR Million	30.362013	30.6.2012	Change %
SHAREHOLDER'S EQUITY	27.7	46.0	-39.7
NON-CURRENT LIABILITIES
Interest-bearing liabilities	0.0	11.1
Deferred tax liabilities	2.6	3.3	-22.1
Other non-current liabilities	0.5	0.4	36.2
CURRENT LIABILITIES
Interest-bearing liabilities	26.1	14.8	76.5
Non-interest-bearing liabilities	16.0	16.3	-2.0
EQUITY AND LIABILITIES	73.0	91.9	-20.6

Prospects for 2013

• Tecnotree's order book at the end of 2012 stood at 54.2 M€, so the company moved into 2013 in a good position
• The company estimates that its net sales and operating result will improve from the previous year
• Variations in the quarterly figures will be considerable
• Prospects have not changed from the previous interim report

Additional Financial Information for Investors

Sales and Adjusted Operating Result

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

Sales by Area Americas

Sales by Area Europe

Sales by Area MEA

Sales by Area APAC

Sales Distribution

Materials and Services

Employee Benefits

Other Operating Expenses

Assets by Quarter

Equity and Liabilities by Quarter

120 M€
100
80
60
40
20
0
	Q2/11	Q3/11	Q4/11	Q1/12	Q2/12	Q3/12	Q4/12	Q1/13	Q2/13
Current non-interest bearing	16,9	18,5	17,6	14,3	16,3	21,7	15,6	15,9	16,0
Current interest bearing	12,2	12,2	15,8	14,8	14,8	14,9	28,3	25,7	26,1
Deferred tax	2,7	2,4	4,4	3,3	3,3	3,1	2,8	2,2	2,6
Long term non-interest bearing	0,5	0,5	0,4	0,4	0,4	0,5	0,4	0,5	0,5
Long term Interest bearing	13,4	13,4	12,2	12,2	11,1	11,1	0,0	0,0	0,0
Shareholders' equity	59,5	58,6	49,5	41,3	46,0	43,9	34,5	31,4	27,7