Slide 1: Tecnomen Lifetree Corporation Interim Report 1-9/2009
Tecnomen Lifetree Corporation Interim Report 1-9/2009 29.10.2009 Eero Mertano President and CEO
Slide 2: Tecnotree Highlights
Tecnotree Highlights Lifetree consolidated from 6 May 2009 M€ 1-9/2009 7-9/2009 Net sales 39.7 (55.5) 13.2 (18.2) Ebit (incl. 1.0 M€ one-time costs in Q3 2009) -6.3 (6.5) -3.0 (3.3) Net result -8.9 (5.3) -4.3 (3.1) Order intake 45.3 (69.3) 6.9 (10.3) Order book 15.2 (17.2) Cash flow after investment
Slide 3: Improvements for 2010
Improvements for 2010 • Tecnotree is implementing actions resulting in annual cost savings of over 10 M€ – Reduction in subcontracting work and personnel in some locations – These savings will be effective from the beginning of 2010 • We have a much wider product and solution portfolio than before,
Slide 4: Tecnotree Business Units
Tecnotree Business Units VAS BSS/OSS • Net sales were 15.8 M€ (29.2) • Net sales were 24.0 M€ (26.3) • Sales came mainly from Next • Demand has remained strong in Generation Messaging products Middle East and Africa and – NGM deliveries for new customers in moderate in Latin America Europe and Afric
Slide 5: Consolidated Income Statement
Consolidated Income Statement Lifetree consolidated from 6 May 2009 EUR Million 7-9/2009 7-9/2008 Change % Net sales 13.2 18.2 -27.4 Other operating income 0.2 0.0 Materials and services -2.3 -4.1 -43.9 Employee benefit expenses -7.3 -5.1 42.7 Other operating expenses -5.1 -4.3 19.2 Depreciation -1.
Slide 6: Consolidated Income Statement
Consolidated Income Statement Lifetree consolidated from 6 May 2009 EUR Million 1-9/2009 1-9/2008 Change % Net sales 39.7 55.5 -28.4 Other operating income 0.3 0.0 Materials and services -7.7 -13.0 -40.6 Employee benefit expenses -19.0 -17.1 11.7 Other operating expenses -14.6 -14.8 -1.7 Depreciatio
Slide 7: Consolidated Income Statement (Pro forma)
Consolidated Income Statement (Pro forma, Tecnotree India included Jul-Sep of both years) EUR Million 7-9/2009 7-9/2008 Change % Net sales 13.2 20.9 -36.9 Other operating income 0.2 0.1 84.5 Materials and services -2.3 -4.7 -51.5 Employee benefit expenses -7.3 -6.0 20.7 Other operating expenses -5.1
Slide 8: Consolidated Income Statement (Pro forma)
Consolidated Income Statement (Pro forma, Tecnotree India included Jan-Sep of both years) EUR Million 1-9/2009 1-9/2008 Change % Net sales 44.7 65.3 -31.5 Other operating income 0.4 0.6 -32.7 Materials and services -9.2 -15.0 -38.7 Employee benefit expenses -21.0 -19.7 6.3 Other operating expenses -
Slide 9: Sales and Orders by Quarter
Sales and Orders by Quarter 35 30 25 20 M€ 15 10 5 0 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Sales 16,9 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2 OBL 18,5 15,0 15,9 20,5 17,1 17,5 16,8 25,1 17,2 9,7 11,7 21,5 15,2 Order intake 19,4 16,6 11,9 25
Slide 10: Net Sales by Business Unit
Net Sales by Business Unit VAS 40 % (53 %), BSS/OSS 60 % (47 %) of Net Sales 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 VAS BSS/OSS Act 1-9/2008 29,2 26,3 Act 1-9/2009 15,8 24,0 10 29.10.2009 Interim Report 1-9/2009
Slide 11: Sales by Business Unit: VAS
Sales by Business Unit VAS 25 M€ 20 15 10 5 0 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Tecnotree Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2 VAS Sales 12,7 7,9 10,1 10,5 9,9 12,4 10,9 5,9 11,2 4,9 6,1 4,8 4 per. Mov. Avg. (VAS… 11 29.10.2009 Inter
Slide 12: Sales by Business Unit: BSS/OSS
Sales by Business Unit BSS/OSS M€ 25 20 15 10 5 0 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Tecnotree Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2 BSS/OSS Sales 7,4 3,1 10,8 8,6 9,3 2,8 11,2 12,3 10,5 6,6 8,9 8,4 4 per. Mov. Avg. (BSS/OSS Sales) 12
Slide 13: Net Sales by Area
Net Sales by Area Americas 43,5%(53,5%), EMEA 51,6%(33,9%), APAC 12,6% (16,1%) M€ Total change -28% 35 -42% +8,5% 30 25 20 15 -71% 10 5 0 Americas EMEA APAC 1-9/2008 29,7 18,9 7,0 1-9/2009 17,3 20,5 2,0 13 29.10.2009 Interim Report 1-9/2009
Slide 14: Sales by Area: Americas
Sales by Area Americas 25 20 15 M€ 10 5 0 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Tecnotree Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2 Americas 10,1 5,0 11,0 9,5 12,2 3,9 12,0 13,7 11,9 7,0 6,9 3,4 4 per. Mov. Avg. … 14 29.10.2009 Interim Report
Slide 15: Sales by Area: EMEA
Sales by Area EMEA 25 20 15 10 5 0 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Tecnotree Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2 EMEA 8,5 5,8 7,1 8,9 4,9 7,7 7,8 3,4 8,7 3,8 7,4 9,3 4 per. Mov. Avg. (EMEA) 15 29.10.2009 Interim Report 1-9/2009
Slide 16: Sales by Area: APAC
Sales by Area APAC 25 20 15 M€ 10 5 0 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Tecnotree Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2 APAC 1,4 0,3 2,7 0,7 2,0 3,6 2,4 1,0 1,1 0,8 0,7 0,5 4 per. Mov. Avg. (APAC) 16 29.10.2009 Interim Report 1-9/2009
Slide 17: Sales Distribution
Sales Distribution 25 20 15 M€ 10 5 0 Q4/ 06 Q1/ 07 Q2/ 07 Q3/ 07 Q4/ 07 Q1/ 08 Q2/ 08 Q3/ 08 Q4/ 08 Q1/ 09 Q2/ 09 Q3/ 09 T ecnot r ee Sal es 20, 1 11, 0 20, 8 19, 1 19, 2 15, 2 22, 2 18, 2 21, 7 11, 5 15, 0 13, 2 Ser vi ces 2, 1 3, 2 3, 9 2, 9 5, 0 3, 8 4, 8 4, 5 5, 5 3, 9 6, 3 6, 8 New Cust omer s
Slide 18: Orderbook by Product Line
Orderbook by Product Line M€ 12 10 8 6 4 2 0 Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009 VAS 9,6 11,1 10,3 8 6,5 BSS/OSS 9,4 7,4 6,8 9,1 8,8 18 29.10.2009 Interim Report 1-9/2009
Slide 19: Number of Personnel
Number of Personnel Employee Benefit Costs (excluding one-time costs) M€ 900 6,2 6,3 800 700 600 468 510 500 6,0 6,1 5,4 5,1 6,7 5,5 6,4 5,1 6,9 5,6 400 300 200 374 365 359 352 347 352 355 354 354 350 352 332 100 0 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Rest of the G
Slide 20: Materials and Services
Materials and Services M€ 25 35 % 30 % 20 25 % 15 20 % 15 % 10 10 % 5 5% 0 0% Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2 Materials and Services 5,4 1,6 5,4 3,6 4,6 4,3 4,5 4,1 3,8 2,0 3,4 2,3 % 26,9% 14,5%
Slide 21: Employee Benefits
Employee Benefits M€ 25 60 % 20 50 % 40 % 15 30 % 10 20 % 5 10 % 0 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 /06 /07 /07 /07 /07 /08 /08 /08 /08 /09 /09 /09 Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2 Employee benefits 7,0 6,1 5,4 5,1 6,7 5,5 6,4 5,1 6,9 5,6 6,2 7,3 % 34,8 55,5 26
Slide 22: Other Operating Expenses
Other Operating Expenses M€ 25 45 % 40 % 20 35 % 30 % 15 25 % 20 % 10 15 % 5 10 % 5% 0 0% Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Sales 20,1 11,0 20,8 19,1 19,2 15,2 22,2 18,2 21,7 11,5 15,0 13,2 Other Opex 6,2 4,3 5,3 4,2 4,6 4,3 6,2 4,3 4,6 4,2 5,2 5,1 % 30,8 % 39,1
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet EUR Million 30.9.2009 30.9.2008 Change % Non-current assets Fixed assets 31.7 26.3 20.3 Consolidated goodwill 18.8 0.7 Other non-current assets 2.0 0.5 Current assets Inventories 1.5 1.5 5.2 Trade receivables 18.0 14.1 27.6 Other receivables 18.2 26.1 -30.3 Investments 0.8
Slide 24: Assets by Quarter
Assets by Quarter M€ 140 120 100 80 60 40 20 0 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Cash 20,4 7,3 6,3 9,2 17,5 11,8 15,5 25,2 51,0 51,5 32,8 30,5 Investments 1,6 0,8 Other rec. (mainly WIP) 19,7 19,8 23,6 34,4 24,8 23,6 27,4 26,1 24,6 24,4 22,2 18,2 Trade receivabl
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet EUR Million 30.9.2009 30.9.2008 Change % Shareholders’ equity 82.3 79.1 4.0 Interest-bearing liabilities 17.8 - Deferred tax liabilites 6.2 4.4 41.5 Other non-current liabilities 0.3 0.0 Current liabilities Interest-bearing liabilities 2.2 - Non-interest-bearing liabilitie
Slide 26: Prospects for 2009
Prospects for 2009 The fall in demand and the global financial crisis, as per our release on 6th October, has continued. Whole year net sales are estimated to be significantly lower than last year and the operating result is expected to show a substantial loss. The integration of Tecnomen and Lifetr