3 M O N T H S R E P O R T 2 O O 3 / 2 O O 4

Transcription

1 3 M O N T H S R E P O R T 2 O O 3 / 2 O O 4

2 Content 03 Hönle at a glance 04 Letter to the Shareholders 06 Management Report 09 Consolidated financial statement 17 Shareholdings of the corporate bodies 18 Calendar 18 Contact / Imprint 2

3 Hönle at a glance Figures Hönle Group 2003/ /2003 Changes 3 months 3 months Income statement T T in % Revenues 4,854 3, EBITDA ,208.7 EBIT n.a. EBT ,900.0 Net income/loss Earnings per share (1) Balance sheet (2) Current assets 17,897 23, Long-term assets 10,978 4, Shareholders' equity 23,995 23, Current liabilities 3,602 3, Long-term debts Total assets 28,875 28, Capital ratio in % Cashflow Cashflows from operating activities n.a. Cashflows from investments n.a. Cashflows from financing activities n.a. Net decrease in cash - 6, n.a. Staff at the end of the financial year (1) Shares outstanding as of (5,240,000 shares) (2) Balance sheet as of and All figures are unaudited. 3

4 Dear Shareholders After the successful close of financial year 2002/2003, we continued our successful course of business at the beginning of the new financial year with a 41% increase in revenues over the first quarter of the previous year. With an EBIT of T 423 (previous year: - T 72), an EBT of T 540 (previous year: T 3) and net income for the period of T 315 (previous year: T : 81) we had a good start in the new financial year. This positive development is due mainly to an upturn in demand in the printing application segments, in addition to the systems competence built up by Hönle in recent years. However, this positive trend still does not reflect a general revival in demand for our products that spreads over all fields of application. Rather, we believe that the favourable corporate development in an investment climate that is still subdued indicates that Hönle is well positioned for a further economic upswing in the future. A strongly performing product range of high quality together with systems know-how, healthy balance sheet structures with a high equity ratio of 83 % and a high cash inventory level of T 16,152 T confirm our view. We are pleased that the Hönle share price performance also developed positively due to 4

5 the sustained positive business development and a brighter mood on the stock exchange. Dear shareholders, at this point, we wish to express out hearty thanks for the trust you have placed in our company. The Board Norbert Haimerl Heiko Runge 5

6 Hönle Group Corporate Report for the three months from 1 October 2003 to 31 December 2003 Sales revenues Hönle Group sales revenues amounted to T 4,854 in the first three months of financial year 2003/2004, 41 per cent up on the previous year s period of T 3,434. Measured according to regions, sales revenues have increased in all sales areas. In the first three months of financial year 2003/2004, sales proportions were 46.7 % (previous year: 46.0 %) domestically, 30.8 % (previous year: 36.3 %) in Europe (excluding Germany), and 22.5 % (previous year: 17.7 %) in the rest of the world. Results Earnings before interest and taxes (EBIT) rose from T -72 in the previous year s first quarter to T 423 in the first quarter of the current financial year. Earnings before taxes (EBT) climbed from T 3 to T 540 in the same period. In the first quarter, the Hönle Group generated net income of T 315 after T 81 in the previous year s same period. Relative to 5.24 million shares of stock, earnings per share rose from 0.02 in the previous year to 0.06 in the current year. Net earnings as a percentage of sales are thus 6.5 per cent, compared to 2.4 per cent in the first quarter of the previous year. Expenses The cost of materials ratio rose from 35.2 per cent in the first quarter of the previous year to 41.3 per cent in the comparable quarter of the current year. This increase is largely due to a foreign subsidiary s larger sales proportion with a higher proportion of products with low gross profit margins. Personnel expenses increased from T 1,378 in the first quarter of the previous year to T 1,556 in this year s first quarter. The personnel expense ratio declined from 40.7 per cent to 31.2 per cent in the same period due to the higher sales level. At T 951, other operating expenses were slightly retrograde after being T 959 in the previous year. Research and Development Research and development activities ensure the future success of our company. In the past three months, the eighteen staff members of the Hönle Group s R&D Department have again been working on product innovations which will be launched shortly. 6

7 Development work is focused on further expansion of systems competence. Our systems, spotlights, adhesives and metering devices are optimally coordinated with one another and are offered to our customers as systems for the drying of UV-reactive substances. R&D expenses dropped slightly from T 322 in the previous year s quarter to T 315 in the first quarter of 2003/2004. Personnel The number of staff working for the Hönle Group rose from 101 employees as at 31 December 2002 to 103 employees as at 31 December This build-up in personnel took place mainly at Wellomer GmbH, where four new employees have been recruited since December Liquidity With en equity ratio of 83.0 per cent, Hönle continues to be solidly financed. Liquid funds were retrograde due to the acquisition of participating certificates from T 15,536 as at 30 September 2003 to T 9,373 as at 31 December Financial assets, in turn, increased from T 562 to T 6,799 as at 31 December Prepaid expenses and other short term assets increased by a total of T 817 to T 1,193, largely due to the reported premium of T 666 that is associated with the participating certificates. Taken together, liquid funds and financial assets amount to T 16,152; this corresponds to a cash proportion of 3.08 per share. Outlook The Hönle Group began the new financial year well with a sales plus of 41 per cent. During the first three months of the current financial year, sales revenues grew further by T 1,420 to T 4,854. Hönle benefits from its development to a systems provider. Innovative, competitive products strengthen the Group s market position domestically and abroad and have led to a further improvement in the sales level. Hönle plans to continue to expand its systems competence in the future and, in so doing, increase the consumer goods share in total sales. This will cause the Group to be less dependent on fluctuations in the demand for long-lasting investment goods. We expect that the positive business development will continue throughout the second quarter. In the printing application sector in particular, the order intake in the first quarter of the financial year proceeded very favourably and we therefore assume that sales will continue to grow in comparison with the previous year. 7

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9 Consolidated Balance Sheet as of December 31, 2003 according to the regulations of the IASC A S S E T S in T in T CURRENT ASSETS Cash and cash equivalents 9,373 15,536 Trade accounts receivable 3,029 3,472 Accounts receivables due from related parties 0 0 Inventories 4,038 3,787 Prepaid expenses and other current assets 1, Tax refund claims Total current assets 17,897 23,499 LONG-TERM ASSETS Property, plant and equipment 1,959 1,995 Intangible assets Goodwill Investments 6, Deferred taxes Other long-term assets 1,070 1,091 Total long-term assets 10,978 4,832 TOTAL ASSETS 28,875 28,331 9

10 LIABILITIES AND SHAREHOLDERS EQUITY in T in T CURRENT LIABILITIES Current portion of capital leasing obligation 0 1 Short-term debt due and current portion of Long-term debt Trade accounts payable Liabilities to associated companies 1 3 Advance payments received Other accrued expenses 900 1,215 Deferred revenues 1 1 Income tax payable Other current liabilities Total current liabilities 3,602 3,498 LONG-TERM DEBTS Long-term debts, less current portion 0 0 Pension accruals Other long-term debts Total long-term debts MINORITY INTEREST SHAREHOLDERS EQUITY Share capital 5,240 5,240 Own shares Additional paid-in capital 16,465 16,465 Legal reserve Special item revaluation Retained earnings 2,671 2,356 Currency disparities Total Shareholders Equity 23,995 23,584 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 28,875 28,331 10

11 Consolidated Income Statement for the period October 1, 2003 until December 31, 2003 according to the regulations of the IASC in T in T Revenues 4,854 3,434 Other operating income Changes in inventories of finished goods and work in progress Cost of purchased materials and services - 2,059-1,190 Personnel expenses - 1,556-1,378 Depreciation and amortization inclusive Goodwill Other operating expenses Operating income / loss Interest income and expedenditure Result before income taxes (and minority interest) Income tax Extraordinary expenses 0 0 Result before minority interest Minority interest Net income/loss Accumulated income/loss brought forward 2, Accumulated net income 2, Net income per share (basic) in Net income per share (diluted) in Weighted average shares outstanding (basic) 5,216,961 5,216,961 Weighted average shares outstanding (diluted) 5,516,161 5,556,461 11

12 Statement of Changes in Equity for the period 1 October 2002 until 31 December 2002 Addi- Special Consolidated Curtional item retained rency Share Own paid-in Legal revalu- earnings/ disparicapital shares capital reserve ation loss ties Total in T in T in T in T in T in T in T in T Balance at 1 October , , ,610 Dividend disbursement Currency disparities Valuation of investments due to IAS 39 not effecting net income Net income of the year 2002/ Balance at 31 December , , ,705 Statement of Changes in Equity for the period 1 October 2003 until 31 December 2003 Addi- Special Consolidated Curtional item retained rency Share Own paid-in Legal revalu- earnings/ disparicapital shares capital reserve ation loss ties Total in T in T in T in T in T in T in T in T Balance at 1 October , , , ,584 Dividend disbursement Currency disparities Valuation of investments due to IAS 39 not effecting net income Net income of the year 2003/ Balance at 31 December , , , ,995 12

13 Consolidated Statement of Cashflows for the period 1 October 2003 until 31 December 2003 according to the regulations of the IASC in T in T Cashflows from operating activities: Net income/loss for the year before minority interest, taxes and extraordinary items Adjustments for: Depreciation of fixed assets Interest income Interest expenses Operating result before changes to net current assets Increase/decrease of accrued expenses Profits/losses from the disposal of items of fixed assets 0-1 Increase/decrease of trade accounts receivable Increase/decrease of other assets and the prepaid expenses Increase/decrease in inventories Increase/decrease in trade accounts payable Increase/decrease in liabilities to associated companies Increase/decrease in advance payments received Increase/decrease in other liabilities Cash from ongoing business activities Interest paid Tax paid from income Net cash from operating activities Cashflows from investment: Income from the sale of fixed assets 0 19 Purchase of tangible assets and intangible assets Purchase of investments - 6,124 0 Change in special item revaluation in equity Change in investments Change in other long-term assets 21-4 Interest and dividend received Net cash used for investment - 5, Cashflows from financing activities: Change in debts and liabilities towards banks Change in minority interest (without allocation of results) 0 0 Dividends paid 0 0 Net cash from financing activities Currency disparities 4-5 Net increase/decrease in cash - 6, Cash at the beginning of the period under review 15,536 10,227 Cash at the end of the period under review 9,373 9,491 13

14 Explanatory Notes to the 3 Month Report 2003/2004 Significant accounting, valuation and consolidation methods have remained unchanged in comparison with the 2002/2003 annual report. The shares held as financial assets and valued in accordance with IAS 39 for the first time in the 2001/2002 financial year were adjusted to the market value as at 31 December 2003, with neutral effect profits. The value of these shares amounted to T 631 at the end of the quarter in comparison with T 536 as at 30 September The difference of T 95 net of T 3 for acquisition of new shares was set off against the special item revaluation with neutral effect on profits. In the first quarter of financial year 2003/2004, Dr. Hönle AG acquired participation certificates to the total amount of T 6,788. The nominal value of T 6,122 was transferred to financial assets, the premium paid to the amount of T 666 was disclosed in prepaid expenses. The term of the participation certificates is due to expire on 31 December 2005 and 31 December 2006, respectively. Repayment will be made as at 30 June 2006 and 30 June 2007, respectively. The participation certificates carry a nominal interest rate of 7.25 and 8.00%. The Dr. Hönle AG Board of Management and Supervisory Board have decided to merge the fully owned subsidiary, Dr. Hönle Produktions GmbH, with Dr. Hönle AG with retrospective effect as of 1 October A capital increase of T 150 in accordance with existing share holdings was decided upon by a shareholders meeting of the subsidiary, Aladin GmbH, held in December The new nominal capital now amounts to T 500. The shareholders contribution to capital and entry in the Commercial Register will take place in the coming quarter. 14

15 The group figures to be segmented are allocated to primary segments as follows: Rest of the Elimina- Germany Europe world tions Consolidated as at as at per as at as at as at as at as at as at as at 12/03 12/02 12/03 12/02 12/03 12/02 12/03 12/02 12/03 12/02 T T T T T T T T T T INCOME: External sales 2,261 1,473 1,502 1,303 1, ,854 3,343 Intra-group sales Total sales 2,614 1,936 1,819 1,786 1, ,854 3,343 RESULTS: Segment result (operating income) Interest received Interest paid Income from securities 53 0 Depreciation of securities 0 0 Results before income taxes (and minority interest) Extraordinary result 0 0 Taxes on income Net income for the period (before minority interest) OTHER INFORMATION Segment assets: by sales areas 6,171 5,489 3,624 4,462 2,693 1,780-1,189-1,264 11,299 10,467 by location of asset 10,710 10,161 1,778 1, ,189-1,264 11,299 10,467 Non-allocated assets: Financial assets 6,779 4,968 Long term receivables 1, Deferred tax assets Cash and cash equivalents 9,373 9,491 Consolidated assets 28,875 25,673 Segment liabilities (by sales areas) 3,152 3,279 2,810 2,938 1, ,822-3,209 4,527 3,866 Investments: by sales areas by location of assets Segment depreciation (by sales areas) Non-cash segment expenses (by sales areas) The values are allocated to individual sales areas on the basis of an allocation key that is uniformly derived from sales revenues. The segmental assets are defined as the sum total of intangible assets, property, plant and equipment, inventories and current receivables. Segment liabilities comprise long term and current liabilities. Non-cash segment expenses include alterations to pension accruals and other accruals. Internal prices of intra-group deliveries and services are subject to the same conditions as those applicable for third parties. 15

16 The group figures to be segmented are allocated as follows to the secondary segments: Adhesives/ Inks/ Eliminaplastics coatings Others tions Consolidated as at as at per as at as at as at as at as at as at as at 12/03 12/02 12/03 12/02 12/03 12/02 12/03 12/02 12/03 12/02 T T T T T T T T T T INCOME: External sales 1, ,896 2, ,854 3,434 Intra-group sales Total sales 1,881 1,140 3,155 2, ,854 3,434 Segment assets: by sales areas 4,116 3,058 7,170 7,098 1,202 1,575-1,189-1,264 11,299 10,467 by location of assets 10,710 10,161 1,778 1, ,189-1,264 11,299 10,467 Investments: by sales areas by location of assets The values are allocated to individual sales areas on the basis of an allocation key that is uniformly derived from sales revenues. The segmental assets are defined as the sum total of intangible assets, property, plant and equipment, inventories and current receivables. Internal prices of intra-group deliveries and services are subject to the same conditions as those applicable for third parties. 16

17 Shareholdings and Option Rights of the corporate bodies Securities portfolio as at 31 December 2003: Number Shares as percentage Number of shares of nominal capital of options Board of Management Norbert Haimerl 72, ,500 Heiko Runge 26, ,500 Supervisory Board Dr. Hans-Joachim Vits Prof. Dr. Karl Hönle 332, Eckhard Pergande 4, Dr. Hönle AG 23, Total 812, ,000 17

18 Calendar Trade Fairs 26 February 2004 Shareholders' Meeting in Munich 14 May Month Report 13 August Month Report May 2004 DRUPA Düsseldorf, Germany September 2005 LABELEXPO EUROPE Belgium, Brussels Imprint Editor: Dr. Hönle AG Photos: Stefan Braun Contact: Investor Relations and Public Relations Peter Weinert Tel. +49 (0) ir@hoenle.de 18 Dr. Hönle AG UV Technology Lochhamer Schlag 1 D Gräfelfing/München Telephone: +49 (0)89/ Fax: +49 (0)89/ ir@hoenle.de Internet: