In case of doubt the Danish version is applicable

Transcription

1 Operational development as expected in Q Dantherm realised revenue of DKK 119m in Q1 2013, which is 5 % higher than that of Q Operating loss (EBIT) amounted to DKK 0.9m, which is an improvement by DKK 2.9m relative to Q The improved quarterly revenue, relative to 2012, is primarily attributable to increased sales to network suppliers within the Telecom business area. Expectations for the whole year are maintained. President & CEO Torben Duer says: According to expectations, developments within the Telecom business area improved at the beginning of 2013, primarily as a result of increased sales to network suppliers. Efforts to increase revenue and improve earnings continue with measures within market presence, product development and cost-effectiveness. With regard to this, Dantherm established a subsidiary in Germany and a sales office in Russia in Q1." Development in Q Revenue was DKK 119m relative to DKK 113m in Q An operating loss (EBIT) of DKK 0.9m was posted against an operating loss of DKK 3.8m in Q Dantherm s earnings before tax (EBT) totalled a loss of DKK 3.8m against a loss of DKK 6.0m in Q Cash flows from operating activities were negative at DKK 10m against positive cash flows at DKK 6.1m in Q This development is attributable to increasing working capital as a result of increased sales and stock building to meet increasing demands, especially from customers within Telecom. Dantherm s net interest-bearing debt amounted to DKK 202m at the end of Q1 against DKK 188m at the beginning of the year. The interest-bearing debt includes finance lease commitments and bank debt relating to buildings of DKK 101m, and a net amount of DKK 101m has been drawn under the company s operating credit facilities. As mentioned in company announcement no. 9 of March , the Azure Hydrogen Energy Science and Technology Corporation, partner of Dantherm Power in China, has invested USD 2m in a ten-percent ownership interest in Dantherm Power. Outlook for 2013 Dantherm maintains expectations for the whole year of revenue of DKK m and an operating profit (EBIT) of DKK 15-20m, on par with the levels of Any enquiries concerning this announcement can be directed at CEO Torben Duer on tel.: In case of doubt the Danish version is applicable Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 1 of 13

2 Contents Financial highlights... 3 Management s review... 4 Development in the business areas... 5 Outlook for Statement by the Board of Directors and Executive Board on the interim report... 7 Income statement... 8 Balance sheet... 9 Cash flow statement Statement of changes in equity Statement of comprehensive income Notes Group chart Disclaimer About Dantherm Dantherm was founded in 1958 by Ejlert Olsen. The company s first product was a warm air heater for heating workshops and industrial buildings. In the 1970s, the product portfolio was extended to include dehumidifiers and ventilation products, and in the 1980s also to include mobile heating and cooling units for the armed forces and aid organisations. In the 1990s, climate control products for the Telecom industry were added. Today, Dantherm is divided into two business areas: HVAC (Heating, Ventilation, Air Conditioning) and Telecom. Within the HVAC business area, Dantherm is an important European provider of products and solutions based on more than 50 years of experience within heating, ventilation, cooling and dehumidification of air. Within the Telecom business area, Dantherm is a leading global supplier of products for climate control in radio base stations. Dantherm s special competencies comprise extensive know-how within climate control, product development expertise and state-ofthe-art production and test facilities in Europe, Asia and North America. Dantherm was listed on NASDAQ OMX Copenhagen in 2002 and currently has approx. 3,500 shareholders. Read more at Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 2 of 13

3 Financial highlights DKKm Q1 FY Income statement: Revenue Earnings before depreciation, amortisation etc. (EBITDA) Operating result (EBIT) Net financials Earnings before tax (EBT) Net profit/loss for the period Balance sheet, end of period: Working capital Net interest-bearing debt Balance sheet total Equity Invested capital Cash flows: Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow for the period RATIOS Financial ratios: Growth rate (growth in revenue) 5.3% -10.5% -12.4% Profit margin (EBIT%) -0.8% -3.3% -1.3% Equity interest 25.1% 27.8% 27.0% Average number of employees Share-related ratios: Earnings per share (EPS), DKK Diluted earnings per share (EPS-D), DKK Cash flow per share, DKK Equity value, end of period, DKK Share price, end of period, DKK Price/equity value Number of shares of DKK 10 each, end of period ( 000) 7,191 7,191 7,191 Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 3 of 13

4 Management s review Market development General market developments within HVAC are still affected by low growth in the European economy including low investment levels within the armed forces and low activity in the construction sector. Within several of the product groups of HVAC, the focus on indoor climate and energy-savings is still increasing. efficiency in all three factories in Denmark, China and the USA. Comments on the Q1 financial statements Revenue was DKK 118.5m in Q1 2013, up 5.3 % relative to Q REVENUE PER QUARTER Amounts in DKKm 150 Within Telecom, the preconditions of growth within wireless communication are driven by an increasing number of mobile subscribers and increased data volumes. In Q1 2013, investments in Telecom networks are increasing relative to Q Business development In Q1 2013, the management continued measures within the focus areas of market presence, product development and costeffectiveness; areas which will contribute to realising Dantherm s growth strategy. With regard to increasing market presence, a subsidiary has been established near Munich in Germany. Furthermore, a sales office has been opened in Moscow, Russia, and local representation has been established in Mexico. Likewise, the expansion of Dantherm s website continues to feature local websites in Dantherm's main markets. An operating loss (EBIT) of DKK 0.9m was posted against an operating loss of DKK 3.8m in Q The higher revenue is the main reason for the improved operating results. EBIT PER QUARTER Amounts in DKKm 5 0 Q1 Developments and updates of the product range continued in Q1, according to the individual plans for each business area. At the beginning of 2013, a new product range was presented for home ventilation on the German market. The project for optimisation of administrative processes in Denmark, which was initiated in 2012, continues in Q1 and is expected to contribute to cost savings in Furthermore, measures were carried out to improve Depreciation and amortisation amounted to DKK 4.1m in Q against DKK 4.8m in the same period of Dantherm has upto-date, state-of-the-art property, plant and equipment, and the investment level is lower than depreciation and amortisation. Net finance costs were DKK 2.9m in Q1 and are thus higher than those of the same peri- Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 4 of 13

5 od in 2012, primarily as a result of increased interest expenses. Earnings before tax (EBT) totalled a loss of DKK 3.8m against a loss of DKK 6.0m in Q In addition, Dantherm owns approx. 38 % of the associate Dantherm Power, the revenue of which is not included in Dantherm s consolidated revenue. REVENUE PER BUSINESS AREA Cash flows and net interest-bearing debt A negative cash flow from operating activities of DKK 10.0m was generated in Q against a positive cash flow of DKK 6.1m posted for the same period last year. This development is attributable to increasing working capital as a result of increased sales and stock building to meet increasing demands, especially from customers within Telecom. Cash flow from investing activities amounted to DKK 3.7m in Q against DKK 5.5m in the same period of Dantherm granted a convertible loan of DKK 2.3m to Dantherm Power in Q1 2012, whereas no loans have been granted to the company in Cash flow from financing activities amounts to DKK -1.8m in Q1 2013, which is slightly lower than that of the same period in This is attributable to lower repayments of finance lease commitments. (DKKm) Q HVAC Telecom Total HVAC HVAC revenue was 10 % lower in Q than in Q The decline in revenue is primarily attributable to a fall within mobile heating and cooling by 35 % relative to same period of Sales were positive in 2012 due to large projects on one single market, whereas revenue in Q has normalised. Telecom In Q1 2013, Telecom revenue increased by 41 % relative to Q The group s net interest-bearing debt totalled DKK 201.9m as at 31 March 2013 The main reason for the increase in revenue is an increase in sales by 65 % to network against DKK 188.3m at the end of The suppliers. At the end of 2012, Dantherm introduced a new product for its biggest cus- increase is primarily attributable to the higher working capital. The net interest-bearing tomer, which contributes to the increased activity along with increased investments in debt includes finance lease commitments and bank debt relating to buildings of DKK Telecom networks m, and a net amount of DKK 100.6m has been drawn under the company s operating credit facilities. Sales to network operators increased by 13 % in Q1 2013, relative to the same period of Dantherm has carried out measures Development in the business areas with regard to market presence and product The activities in Dantherm are structured into development which contribute to the increasing revenue. two business segments HVAC and Telecom. Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 5 of 13

6 Dantherm Power The activities in Dantherm Power comprise the development and sale of backup power plants, primarily within Telecom, and CHP units for private households based on fuel cell technology. As mentioned in company announcement no. 9 of March , the Azure Hydrogen Energy Science and Technology Corporation, partner of Dantherm Power in China, has invested USD 2m in a ten-percent ownership interest in Dantherm Power. Following the transaction, Ballard s ownership interest in Dantherm Power is approx. 52 % and Dantherm holds approx. 38 %. Outlook for 2013 Dantherm maintains expectations for the whole year of revenue of DKK m and an operating profit (EBIT) of DKK 15-20m, on par with the levels of Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 6 of 13

7 Statement by the Board of Directors and Executive Board on the interim report Today, the Board of Directors and the Executive Board have discussed and approved the interim report of Dantherm A/S for the period 1 January - 31 March The interim report, which has not been audited or reviewed by the company s auditors, is presented in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies. In our opinion, the interim report gives a true and fair view of the group s assets, equity and liabilities and financial position as at 31 March 2013 and of the results of the group s operations and cash flows for the period 1 January - 31 March We also find that the management s review contains a fair review of the development in the group s activities and financial affairs, the results for the period and the group s financial position as a whole as well as a description of the main risks and uncertainties facing the group. Skive, Denmark, 1 May 2013 Executive Board: Torben Duer President & CEO Bjarke Brøns CFO Board of Directors: Jørgen Møller-Rasmussen Preben Tolstrup Niels Kr. Agner Chairman Deputy Chairman Søren Østergaard Hansen Conni-Dorthe Laursen Nils R. Olsen Per F. Pedersen Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 7 of 13

8 Income statement DKKm Q1 FY Revenue Other operating income Costs of raw materials and consumables Other external expenses Staff costs Earnings before depreciation, amortisation etc. (EBITDA) Depreciation, amortisation and impairment of property, plant and equipment and intangible assets Operating result (EBIT) Net financials Earnings before tax (EBT) Tax on profit/loss for the period Profit/loss for the period Distributed as follows: Shareholders of Dantherm A/S Earnings per share Earnings per share (EPS), DKK Diluted earnings per share (EPS-D), DKK Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 8 of 13

9 Balance sheet DKKm Note 31/ / / Intangible assets Property, plant and equipment Financial assets Other non-current assets Total non-current assets Inventories Trade receivables Other receivables Cash Total current assets TOTAL ASSETS The Dantherm A/S shareholders share of equity Total equity Provisions Credit institutions Total non-current liabilities Provisions Credit institutions Trade payables Other payables Total current liabilities Total liabilities TOTAL EQUITY AND LIABILITIES Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 9 of 13

10 Cash flow statement DKKm Q1 FY Earnings before tax (EBT) Adjustment for non-cash operating items etc Cash flow from primary operations before change in working capital Change in inventories Change in receivables Change in trade payables Cash flow from primary operations Financial items, paid Cash flow from ordinary operations Income tax paid Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow for the period Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 10 of 13

11 Statement of changes in equity DKKm 31/ / / Equity as at 1 January Comprehensive income Net profit/loss for the period Other comprehensive income Foreign currency translation adjustment, foreign enterprises Value adjustment of hedging instruments Other comprehensive income, total Total comprehensive income Total equity Statement of comprehensive income DKKm Q1 FY Net profit/loss for the period Other comprehensive income: Foreign currency translation adjustment, foreign enterprises Value adjustment of hedging instruments Other comprehensive income after tax Total comprehensive income Distributed as follows: Shareholders of Dantherm A/S Total comprehensive income Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 11 of 13

12 Notes Note 1: Accounting policies The interim report is presented in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and additional Danish disclosure requirements for the interim reporting of listed companies. The annual report for 2012 contains a full description of the accounting policies. The accounting policies have been applied consistently with the annual report for 2012, except that the group has implemented new accounting standards (IFRS and IAS) and interpretations (IFRIC) which have taken effect. The new standards and interpretations have not affected the recognition and measurement. Note 2: Estimates The preparation of interim reports requires the management to make certain accounting estimates which affect the application of the accounting policies and recognised assets, liabilities, income and expenses. Actual results may deviate from these estimates. The significant estimates made by the management in applying the group s accounting policies and the considerable uncertainty associated with these estimates are the same for the preparation of the interim report and the preparation of the annual report as at 31 December Note 3: Segment information Reportable segments of Dantherm comprise the two strategic business areas HVAC and Telecom, which offer different products and services and are run by separate managements. Development within the business segments is assessed against the background of the profit/loss before depreciation, amortisation, impairment losses and write-downs (EBITDA). Internal financial reporting, which these assessments are based on, is consistent with the accounting policies of the group. Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 12 of 13

13 DKKm Q Q HVAC Telecom Total reportable segments Group in total HVAC Telecom Total reportable segments Group in total Revenue Internal revenue Total revenue EBITDA DKKm FY 2012 HVAC Telecom Total reportable segments Group in total Revenue Internal revenue Total revenue EBITDA Group chart Dantherm Air Handling Holding A/S (DK) (100%) (100%) (100%) Dantherm Air Handling A/S (DK) Dantherm Inc. (US) Dantherm A/S (100%) Dantherm AS (DK) (NO) (100%) Dantherm Air Handling (Suzhou) Co. Ltd. (CN) (100%) Dantherm Air Handling Sp.z.o.o. (PL) (100%) Dantherm Ltd. (GB) (100%) Dantherm AB (SE) (100%) Dantherm GmbH (DE (38,7%) Dantherm Power A/S (DK) Disclaimer This announcement contains forward-looking statements that reflect the management s current perception of future events and financial results. The statements made about 2013 are, in the nature of the case, subject to uncertainty, and Dantherm s actual results may therefore deviate from the outlook. Factors which may cause the actual results to deviate from the outlook include, but not exclusively, changes in the group s activities and market conditions, such as raw materials prices, exchange rates and the economic climate. This interim report should not be construed as an encouragement to buy or sell shares in Dantherm. Dantherm A/S, Marienlystvej 65, DK-7800 Skive, Page 13 of 13