Panostaja Oyj Stock Exchange Bulletin, December 13, 2013 10:00 a.m.
Fourth-quarter net sales MEUR 49.7 (MEUR 39.8), growth 25%. Fourth quarter EBIT MEUR 0.4 (MEUR 0.0), growth MEUR 0.4. Operating profit includes write-downs of MEUR 2.2 related to the restructuring of Takoma and product development projects in the Heat Treatment segment. EBIT without one-time items MEUR 2.6 (MEUR 2.6).
During the quarter, Panostaja divested the Carpentry and Fasteners segments. After the end of the financial period, Panostaja also divested the Supports segment.
Takoma Oyj and its subsidiaries Takoma Gears Oy and Tampereen Laatukoneistus Oy filed on December 9, 2013 business restructuring proceedings applications at the District Court of Pirkanmaa in order to complete the reorganization measures of the Group on which decisions have been made.
The Board of Directors proposes to the Annual General Meeting that no dividends be paid or capital repayment be made for the financial period.
FOURTH QUARTER, AUGUST–OCTOBER 2013
Net sales MEUR 49.7 (MEUR 39.8), growth 25%.
EBIT MEUR 0.4 (MEUR 0.0), growth MEUR 0.4. Operating profit includes write-downs of MEUR 2.2 related to the restructuring of Takoma and product development projects in the Heat Treatment segment.
EBIT without one-time items MEUR 2.6 (MEUR 2.6).
Profit before taxes MEUR -0.6 (MEUR -1.6).
Earnings per share (undiluted) -0.7 cents (-5.5 cents).
Cash flow from business operations MEUR 3.1 (MEUR 3.5).
The growth in net sales was mainly due to corporate acquisitions carried out in the current year and the previous year and the operational growth of the Safety and Value-added Logistics segments. The impact of corporate acquisitions on the net sales of the fourth quarter stood at MEUR 7.0.
Fourth-quarter EBIT adjusted with one-time items remained at the level of the previous year.
NOVEMBER 2012–OCTOBER 2013
Net sales MEUR 179.6 (MEUR 147.9), growth 21%.
EBIT MEUR -0.4 (MEUR 3.2), change MEUR -3.6.
EBIT without one-time items MEUR 4.6 (MEUR 6.2), change -26%.
Profit before taxes MEUR -3.7 (MEUR 0.0).
Earnings per share (undiluted) -9.0 cents (-3.9 cents).
Equity per share EUR 0.59 (EUR 0.56).
Equity ratio 33.2% (34.1%).
Cash flow from business operations was MEUR 7.8 (MEUR 10.6).
The increase in net sales was primarily a result of the corporate acquisitions carried out during the previous financial period and the current financial period. The impact of corporate acquisitions stood at MEUR 32.6. Furthermore, organic growth in the Safety and Value-added Logistics segments increased net sales.
The MEUR -3.6 decrease in EBIT was especially caused by weak demand in the technology industry segments, write-downs concerning restructuring in the Takoma segment, the MEUR 0.9 costs incurred from goodwill amortization related to product development projects in the Heat Treatment segment, and from costs of MEUR 1.1 arising from goodwill allocations from corporate acquisitions carried out at the beginning of the financial period.
The EBIT also includes a MEUR 2.3 goodwill amortization entry for Takoma.
The General Meeting of January 29, 2013 approved the capital repayment proposal made by the Board. EUR 0.04 per share of capital was repaid from the invested unrestricted equity fund. The record date for the capital repayment was February 1, 2013, with the payment date being February 8, 2013. A total of MEUR 2.0 of capital was repaid to parent company shareholders.
| 12 months | 12 months | |||||
| Key figures | 11/12-10/13 | 11/11-10/12 | ||||
| Net sales (MEUR) € | 179.6 | 147.9 | ||||
| EBIT (MEUR) € | -0.4 | 3.2 | ||||
| Profit before taxes (MEUR) | -3.7 | -0.0 | ||||
| Earnings per share, undiluted (EUR) | -0.09 | -0.04 | ||||
| Equity per share (EUR) | 0.59 | 0.56 | ||||
| Financial position and cash flow: | October 31, 2013 | October 31, 2012 | ||||
| Net liabilities (MEUR) | 40.1 | 40.5 | ||||
| Gearing (%) | 82.6 | 89.6 | ||||
| Equity ratio,% | 33.2 | 34.1 | ||||
| Cash flow from business operations (MEUR) | 7.8 | 10.6 | ||||
The income statement for operations discontinued during the reference period has been separated from the income statement for retained operations and the result for them is presented in accordance with the IFRS standard on row ‘Earnings from discontinued operations’. Prior to separating discontinued operations from retained operations in the income statement, the consolidated net sales for the reference period were MEUR 156.8 and the EBIT was MEUR 4.2.
MARKET SITUATION
Panostaja Group’s financial period did not meet the financial expectations targeted at all segments. In particular, the segments serving the technology industry suffered from weak demand. The general economic situation and atmosphere has remained challenging, especially in export industry-related segments. For the time being, the demand for companies operating on the domestic market has remained at a satisfactory level at least. When economic growth starts in the future, the position of the segments within their fields should become stronger. The situation on the financial markets remains challenging, particularly in the SME sector, and the tightening of credit issue is a significant risk to general financial development. In terms of volumes, the corporate acquisitions market remains at a lower level than normal, and no significant change in activity is expected to take place in the coming months.
Panostaja prepared for the weak financial market situation in the SME sector and for a continued quiet period in the corporate acquisitions market by taking out a MEUR 7.5 hybrid loan in May. This hybrid loan will enable Panostaja to make, in line with the company’s strategy and investment criteria, new complementary acquisitions and to give more temporal room for maneuver for possible divestments.
THE ECONOMIC DEVELOPMENT OF THE PANOSTAJA GROUP
FOURTH QUARTER, AUGUST–OCTOBER 2013
Panostaja Group’s net sales in the fourth quarter were MEUR 49.7 (MEUR 39.8). Export amounted to MEUR 1.5, or 3.4%, (MEUR 3.4, or 8.2%) of net sales.
Net sales increased by 25%. The MEUR 9.8 increase in net sales was primarily the result of growth stemming from corporate acquisitions, and from organic growth in the Safety and Value-added Logistics segments. Corporate acquisitions made in the previous financial period and the current financial period increased net sales by MEUR 7.0.
Of the Group’s nine operational segments, five exceeded the net sales of the reference year. Correspondingly, three fell below the net sales levels of the reference year. There is not yet any comparative data for the Ceiling Materials segment. On November 7, 2012, Panostaja bought 60% of the share capital of Selog Oy, which supplies material, calculation and design services for ceiling construction.
EBIT totaled MEUR 0.4 (MEUR 0.0). The increase in EBIT by MEUR 0.4 was positively affected by corporate acquisitions carried out at the beginning of the financial period and by a strong result in the Safety and Value-added Logistics segments. Five segments achieved better EBIT than in the reference period.
The Group’s net financial expenses for the review period were approximately MEUR -0.8 (MEUR -1.5). The Group’s liquidity was good. Cash flow from business operations deteriorated slightly and was MEUR 3.1 (MEUR 3.5).
NOVEMBER 2012–OCTOBER 2013
Net sales increased by 21%. Panostaja Group’s net sales were MEUR 179.6 (MEUR 147.9) in the review period that has ended. Export amounted to MEUR 8.5, or 4.7%, (MEUR 12.5, or 7.9%) of net sales. Corporate acquisitions realized during the previous financial period affected the MEUR 31.7 increase in net sales by MEUR 32.6.
Of the Group’s nine operational segments, four exceeded the cumulative net sales for the reference period, and three segments exceeded the EBIT levels in the review period. EBIT improved in the segments of Digital Printing Services, Safety, and Value-added Logistics.
EBIT totaled MEUR -0.4 (MEUR 3.2). The MEUR -3.6 decrease in EBIT was especially caused by weak demand in the technology industry segments, write-downs concerning restructuring in the Takoma segment, the MEUR 0.9 costs incurred from goodwill amortization related to product development projects in the Heat Treatment segment, and from costs of MEUR 1.1 arising from goodwill allocations from corporate acquisitions carried out at the beginning of the financial period.
The EBIT also includes a MEUR 2.3 goodwill amortization entry for Takoma.
The Group’s net financial expenses for the review period were approximately MEUR -3.2 (MEUR -3.6). The Group's liquidity remained good and operating cash flow was MEUR 7.8 positive.
Personnel
Panostaja’s personnel continued to grow. At the end of the review period, Panostaja Group employed a total of 1,295 persons, while the average number of personnel during the financial year was 1,251.
| October 31, 2013 | October 31, 2012 | ||
| Average number of employees | 1,251 | 1,152 | |
| Employees at the end of the review period | 1,295 | 1,206 | |
| Employees in each segment at the end of the review period | October 31, 2013 | October 31, 2012 | |
| Digital Printing Services | 451 | 335 | |
| Safety | 205 | 212 | |
| Takoma | 163 | 193 | |
| Value-added Logistics | 299 | 253 | |
| Ceiling Materials | 15 | 0 | |
| Spare Parts for Motor Vehicles | 39 | 38 | |
| Fittings | 37 | 30 | |
| Heat Treatment | 62 | 65 | |
| Carpentry Industry | 0 | 30 | |
| Supports | 16 | 16 | |
| Fasteners | 0 | 24 | |
| Other | 8 | 10 | |
| Group in total | 1,295 | 1,206 |
GROUP STRUCTURE CHANGES
In line with its strategy, Panostaja actively carried out corporate acquisitions and sales and expanded operations by creating a new segment of Ceiling Materials.
On November 6, 2012, Panostaja Oyj’s subsidiary Suomen Helasto Oy bought the entire shareholding of Oy Eurohela Trading Ltd, which provides furniture fittings wholesale services. In the same connection, the segment was also reorganized, so that the furniture fittings and construction fittings operations were divided into individual companies. Suomen Helasto Oy’s subsidiaries Oy Eurohela Trading Ltd and Suomen Helakeskus Oy merged to form Suomen Helakeskus Oy, focusing on the furniture fittings business. Suomen Helasto Oy’s new subsidiary Rakennushelasto Oy, which was established as part of the reorganization, specializes in the construction fittings business. As a result of the reorganization, Panostaja Oyj’s shareholding in Suomen Helasto Oy is about 95%.
Panostaja Oyj announced on November 7, 2012 that it had bought 60% of the share capital of Selog Oy, a company supplying material, calculation and design services for ceiling construction. As a result of the transaction, Panostaja expanded its business operations and established within the Group a new business area specializing in wholesale services of ceiling materials. As part of the arrangement, Selog Oy’s owners continued as minority shareholders in the new segment.
Panostaja expanded its Digital Printing Services segment on December 4, 2012, which already includes the Kopijyvä Group. Panostaja’s subsidiary Digiprint Finland Oy acquired the entire share capital of DMP-Digital Media Partners Oy. The DMP Group provides printing, publication and production services for marketing communications. After the reorganization, Panostaja Oyj’s shareholding in Digiprint Finland Oy is about 56%. As part of the reorganization, the owners of DMP-Digital Media Partners Oy became minority shareholders in Digiprint Finland Oy. As a result of the reorganization, Digiprint Finland Oy owns all of Kopijyvä Oy and DMP-Digital Media Partners Oy.
Panostaja announced on September 18, 2013 that Kopijyvä Oy, which belongs to the Digital Printing Services segment, had acquired the entire share capital of Lappeenranta-based Mainos-PainoDuo Oy. The transaction strengthened Kopijyvä's position in Southeast Finland.
On October 9, 2013, Panostaja announced that it was divesting its Carpentry segment and selling its entire shareholding in Matti-Ovi Oy to Taaleritehtaan Sijoitustehdas Oy.
On October 17, 2013, Panostaja announced that it was divesting its Fasteners segment and selling its entire shareholding in Suomen Kiinnikekeskus Oy to Länsi-Suomen Sähkötukku Oy.
SEGMENT REVIEW
Panostaja Group’s business operations for the period under review are reported in 10 segments: Digital Printing Services, Safety, Takoma, Value-added Logistics, Ceiling Materials, Spare Parts for Motor Vehicles, Fittings, Heat Treatment, Supports and Other (parent company and associated companies).
NOVEMBER 2012–OCTOBER 2013
The growth of the net sales of the Digital Printing Services segment was MEUR 15.7, a significant proportion of which is attributed to the acquisition of the DMP companies in December 2012. The net sales of the Digital Printing Services grew from MEUR 35.1 to MEUR 50.8 and EBIT from MEUR 5.5 to MEUR 6.4. Consumption of print paper and CAD paper is falling and, due to the poor market situation, customer activity is low, which is causing strong price competition on the market. In spite of tightening competition, however, the segment was able to maintain good development of net sales and EBIT. During the financial period, smaller business transactions were accomplished in the segment in addition to the DMP acquisition, with Digicolor Oy merging with DMP-DigitalMediaPartners Oy. At the end of the financial period, the segment employed 451 (335) persons.
The growth of the net sales of the Safety segment was MEUR 2.8. The net sales grew from MEUR 29.0 to MEUR 31.8, and EBIT improved from MEUR 1.1 to MEUR 1.6. The strong development of product and service provision continued during the financial period, and investments made in growth had a negative impact on the profit of the financial period. A corporate acquisition took place in the segment during the period under review: the Group purchased the business operations of the Lappeenranta-based Lappeenranta Lukko- ja Varustepalvelu Oy. At the end of the financial period, the segment employed 205 (212) persons.
Net sales in the Takoma segment deteriorated strongly from MEUR 28.9 to MEUR 23.2.
EBIT also decreased from MEUR -5.0 to MEUR -8.0.
The segment’s EBIT was burdened by a goodwill amortization of MEUR 2.3 and significant costs arising from operational restructuring. During the financial period, major operational restructuring was carried out as Takoma Systems and Hervannan Koneistus were wound down. Uncertainty in the segment’s market environment continued throughout the financial period. New customers for the Offshore industry were gained on the Norwegian market, but their impact will only be seen later. The filing for business restructuring proceedings announced after the end of the financial period on December 9, 2013 may have an impact on old customers, the acquisition of new customers, and goods suppliers. Efforts are being made to reduce negative effects through active dialogue. At the end of the financial period, the segment employed 163 (193) persons.
Net sales in the Value-added Logistics segment increased from MEUR 23.3 to MEUR 29.9.
A significant proportion of this growth is attributed to the acquisition of HSG-Logistics Oy in May 2012.
The segment’s EBIT improved from MEUR 1.4 to MEUR 1.7.
The segment’s business continued strongly despite the poor prospects for the technology industry. During the financial period, several significant outsourcings from the customer base to Vindea were carried out. The positive development of operating profit has been affected by the constant improvement of operations. At the end of the financial period, the segment employed 299 (253) persons.
Ceiling Materials is a new segment that was created when Panostaja acquired 60% of the shares of Selog Oy on November 7, 2012.
During the financial period, net sales in the segment were MEUR 12.8 and EBIT MEUR 0.9.
The segment’s result in the reference period is burdened by cost- and depreciation write-downs arising from sales price allocations. A generally weak market situation in construction is also reflected in the demand from the segment's customers.
Net sales in the Spare Parts for Motor Vehicles segment declined slightly from MEUR 10.4 to MEUR 10.3, with EBIT deteriorating from MEUR 1.1 to MEUR 0.8.
The general poor economic situation has cut growth in the business of KL-Varaosat. At the end of the financial period, the segment employed 39 (38) persons.
Net sales in the Fittings segment increased during the review period from MEUR 10.3 to MEUR 11.9.
This growth can be explained by the acquisition of the business of Oy Eurohela Trading Ltd in November 2012. EBIT for the review period, however, declined from MEUR 0.4 to MEUR -0.2, which can be attributed to costs arising from restructuring and cost- and depreciations write-downs arising from sales price allocations. Uncertainty still prevails on the market and both units are suffering from the market downturn in the construction industry. At the end of the financial period, the segment employed 37 (30) persons.
Net sales of the Heat Treatment segment declined by MEUR 1.7 and EBIT by MEUR 2.5 during the review period. Net sales decreased from MEUR 7.5 to MEUR 5.7 and EBIT from MEUR 1.0 to MEUR -1.5. The result is burdened by an amortization entry of MEUR 0.9 in product development projects. The deterioration of net sales and EBIT was affected by weak customer demand on all markets, for which reason production adaptation measures have been ongoing throughout the financial period. At the end of the financial period, the segment employed 62 (65) persons.
Net sales in the Supports segment declined from MEUR 4.0 to MEUR 3.6, owing to the poor economic situation in construction. EBIT declined slightly from MEUR 0.3 to MEUR 0.2. At the end of the financial period, the segment employed 16 (16) persons.
There were no significant changes in the net sales of the Other segment. In the review period, two associated companies, Ecosir Group Oy and Spectra Yhtiöt Oy, issued reports to the parent company. The profit/loss of the reported associated companies in the review period was MEUR -0.1 (MEUR 0.4), which is presented on a separate row in the consolidated income statement.
INVESTMENTS AND FINANCE
The Group's liquidity remained good, and operating cash flow was MEUR 7.8 (MEUR 10.6). The Group’s liquid assets and equivalents for sale were MEUR 16.4 (MEUR 12.3).
The Group’s gross capital expenditure increased and was MEUR 21.2 (MEUR 6.2) in the review period. Investments were mainly targeted at corporate acquisitions. The Group’s equity ratio was 33.2% (34.1%) and interest-bearing net liabilities totaled MEUR 40.1 (MEUR 40.5). Interest-bearing net liabilities remained at the level of the previous year. Panostaja Oyj’s convertible subordinated loan amounted to MEUR 14.6 of the net liabilities (MEUR 14.4). The return on equity was -10.9% (-5.4%) and the return on investment 0.5% (1.8%). Gearing ratio was 82.6% (89.6%).
In May, Panostaja Oyj issued a domestic hybrid loan of MEUR 7.5 (equity debenture loan). The loan was issued on May 27, 2013. It will strengthen the company’s solvency and financial position. The hybrid loan has been processed in accordance with the IFRS standard as an equity loan and is shown in the balance sheet in the equity group.
| Financial position: | |||||||
| MEUR | October 31, 2013 | October 31, 2012 | |||||
| Interest-bearing liabilities | 60.1 | 56.6 | |||||
| Interest-bearing receivables | 3.6 | 3.7 | |||||
| Equivalents for sale | 8.4 | ||||||
| Cash and cash equivalents | 8.0 | 12.3 | |||||
| Interest-bearing net liabilities | 40.1 | 40.5 | |||||
| Equity (belonging to the parent company’s shareholders as well as minority shareholders) | 49.1 | 45.2 | |||||
| Gearing ratio,% | 82.6 | 89.6 | |||||
| Equity ratio,% | 33.2 | 34.1 | |||||
| Return on equity,% | -10.9 | -5.4 | |||||
| Return on investment,% | 0.5 | 1.8 | |||||
The Annual General Meeting of January 29, 2013 approved the capital repayment proposal made by the Board. EUR 0.04 per share of capital repayment was paid from the invested unrestricted equity fund. The record date for the capital repayment was February 1, 2013, with the payment date being February 8, 2013. A total of MEUR 2.0 of capital was repaid to parent company shareholders.
SHARE PRICE DEVELOPMENT AND SHARE OWNERSHIP
Panostaja Oyj’s share closing rate fluctuated between EUR 0.66 and EUR 0.86 during the review period. During the financial period, the exchange of shares totaled 3,814,701 shares, 7.4% of the share capital. The review-period share closing rate was EUR 0.80. The market value of the company’s share capital at the end of October was MEUR 41.4 and the company had 3,743 shareholders (3,785).
| Development of share exchange | 4Q/2013 | 4Q/2012 | 1-4Q/2013 | 1-4Q/2012 | |
| Shares exchanged, 1,000 pcs | 1,276 | 443 | 3,815 | 5,726 | |
| % of share capital | 2.5 | 0.9 | 7.4 | 11.2 | |
| Share | October 31, 2013 | October 31, 2012 | |||||
| Shares in total, 1,000 pcs | 51,733 | 51,733 | |||||
| Own shares, 1,000 pcs | 491 | 565 | |||||
| Closing rate | 0.80 | 0.77 | |||||
| Market value (MEUR) | 41.4 | 39.8 | |||||
| Shareholders | 3,743 | 3,785 | |||||
| 10 largest shareholders (pcs) | October 31, 2013 | October 31, 2012 | |
| Koskenkorva Matti | 6,000,000 | 4,711,873 | |
| Etera Mutual Pension Insurance Company | 4,259,000 | 4,259,000 | |
| Koskenkorva Maija | 3,821,742 | 3,821,742 | |
| Fennia Mutual Insurance Company | 3,468,576 | 3,468,576 | |
| Treindex Oy | 3,400,000 | 3,400,000 | |
| Koskenkorva Mauno | 1,640,769 | 1,840,769 | |
| Koskenkorva Mikko | 1,245,139 | 1,245,139 | |
| Johtopanostus Oy | 1,030,000 | 1,030,000 | |
| Tampereen Seudun Osuuspankki | 985,334 | 985,334 | |
| Malo Hanna | 982,207 | 982,207 | |
On December 28, 2012, Panostaja Oyj received a notification of change in holding in the company pursuant to Section 2(9) of the Securities Markets Act. Matti Koskenkorva’s share of Panostaja Oyj's total number of voting shares exceeded 10%. Matti Koskenkorva's share on the record date was 5,187,192 shares, 10.03% of Panostaja Oyj's share capital and voting shares.
ADMINISTRATION AND GENERAL MEETING
Panostaja Oyj’s Annual General Meeting was held on January 29, 2013 in Tampere. Jukka Ala-Mello, Satu Eskelinen, Mikko Koskenkorva and Eero Eriksson were re-elected to Panostaja Oyj’s Board of Directors. Antero Virtanen and Jukka Terhonen were elected as new members. In the Board’s organizing meeting held immediately after the General Meeting, Jukka Ala-Mello was elected Chairman of the Board and Eero Eriksson as Vice Chairman. Authorized Public Accountant Markku Launis and Authorized Public Accountants PricewaterhouseCoopers Oy were selected as general chartered accountants, with Authorized Public Accountant Janne Rajalahti as the responsible public accountant.
The General Meeting approved the closing of the November 1, 2011–October 31, 2012 accounts as well as the proposal by the Board to transfer the loss for the financial period to the profit funds and that capital repayment be paid at a rate of EUR 0.04 per share. The record date for the capital repayment was February 1, 2013, with the payment date being February 8, 2012. In addition, the General Meeting authorized the Board to decide, at its discretion, on the potential distribution of assets to shareholders, the company's financial status permitting, as distribution of assets from the invested unrestricted equity fund. The maximum distribution of assets performed on the basis of this authorization totals EUR 5,200,000. The authorization includes the right of the Board to decide on all other terms and conditions relating to the said asset distribution. The authorization will remain valid until the end of the next Annual General Meeting.
In addition, the General Meeting granted exemption from liability to the members of the Board and to the CEO. It was decided at the General Meeting that the Chairman of the Board be paid EUR 40,000 as an annual compensation for the term that begins at the end of the Meeting and ends at the end of the 2014 Annual General Meeting, and that the other members of the Board be paid an annual compensation of EUR 20,000. It was further resolved at the General Meeting that approximately 40% of the compensation remitted to the members of the Board be paid on the basis of the share issue authorization given to the Board, by issuing company shares to each Board member if the Board member does not own more than one percent of the company’s shares on the date of the General Meeting. If the holding of a Board member on the date of the General Meeting is over one percent of all company shares, the compensation will be paid in full in monetary form.
The General Meeting authorized the Board of Directors to decide on the acquisition of the company’s own shares, so that the shares will be acquired in one or more installments and, based on this authorization, a maximum of 5,100,000 shares can be acquired, which corresponds to about 9.86% of all the company’s shares. By virtue of the authorization, the company’s own shares may be obtained using unrestricted equity only.
The company’s own shares may be acquired at the price in public trade arranged by NASDAQ OMX Helsinki Oy on the date of acquisition or otherwise at the prevailing market price. The Board of Directors will decide how the company’s own shares are to be acquired. The company’s own shares may be acquired not following the proportion of ownership of the shareholders (directed acquisition). The authorization remains valid until July 29, 2014.
The Board of Directors has not used the authorization granted by the Annual Meeting to acquire the company’s own shares during the review period.
SHARE CAPITAL AND THE COMPANY’S OWN SHARES
At the close of the review period, Panostaja Oyj’s share capital was EUR 5,568,681.60. The total number of shares is 51,733,110.
The total number of the company’s own shares held by the company at the end of the review period was 490,956 individual shares (at the beginning of the financial period: 552,566). The number of the company's own shares corresponded to 0.9% of the number of shares and votes at the end of the entire review period.
In accordance with the decisions of the General Meeting of January 30, 2012 and the Board, Panostaja Oyj transferred a total of 12,656 individual shares as meeting compensation to the members of the Board on December 14, 2012. As per the decision of the General Meeting of January 29, 2013 and the Board on March 7, 2013, 15,384 shares were transferred, on June 6, 2013 16,902 shares were transferred, and on September 5, 2013 16,668 Panostaja Oyj shares were transferred.
EQUITY CONVERTIBLE SUBORDINATED LOAN AND HYBRID LOAN
At the end of the review period, EUR 15,000,000 of the 2011 convertible subordinated loan remained. The interest on the loan is 6.5% and the loan period February 7, 2011–April 1, 2016. The original share exchange rate is EUR 2.20, and the loan shares may be exchanged for no more than 6,818,181 company shares. The total number of loan shares is 300, and they are available for public trade on the Nasdaq OMX Helsinki stock exchange. The share exchange rate will be entered into the company’s invested unrestricted equity fund.
On May 27, 2013, the Group issued an equity convertible subordinated loan to the value of MEUR 7.5. The equity convertible subordinated loan has not maturity date, but the Group is entitled, but not obliged, to redeem the loan within four years. Based on the contract, the annual interest is 9.75%. Interest is only paid if the company decides to distribute dividends. If dividends are not distributed, the Group will decide separately on the payment of interest. In the consolidated financial statements, the loan is classified as equity and interest is presented as dividend.
BOARD PROPOSAL ON THE DISTRIBUTION OF PROFITS
The Board of Directors proposes that the loss for the financial period be transferred to the accrued earnings account and no dividends be paid or capital repayment made for the financial period.
The Board also proposes that the General Meeting authorize the Board of Directors to decide, at its discretion, on the potential distribution of assets to shareholders, should the company's financial status permit this, either as dividend or as capital repayment from the invested unrestricted equity fund. The maximum allocation of assets performed on the basis of this authorization totals no more than EUR 5,200,000.
It is proposed that the authorization include the right of the Board to decide on all other terms and conditions relating to the said asset allocation. It is also proposed that the authorization remain valid until the start of the next Annual General Meeting.
Panostaja Oyj’s Annual General Meeting will be held on January 29, 2014 in Tampere.
NEAR-FUTURE RISKS AND FACTORS OF UNCERTAINTY
Panostaja Group’s most significant near-future risks are mainly tied to the uncertainty resulting from Finland’s economic situation, export industry competitiveness and the change it has caused, as well as their potential impact on achieving the goals set for the various segments. The instability of the overall economic situation has led to a decline in customer demand as well as the postponement of investments, particularly in segments serving the technology sector, which may result in a need for consolidated goodwill write-downs. Changes concerning Takoma may cause needs for one-time write-downs. In the current financial period, credit loss risks continue to represent a significant uncertainty factor in some of the segments. This risk is increased by the tightening of credit issue to SMEs. The weakening in financial market liquidity and the tightening on credit issue may hamper the realization of corporate acquisitions and the availability of finance for working capital. Panostaja has prepared for a weak financial market situation in the SME sector and for a continued quiet period in the corporate acquisitions market by taking out a MEUR 7.5 hybrid loan in May. Panostaja Group’s annual report 2013, which will be published at a later date, will provide more detailed information about risks.
In order to complete the reorganization measures of the Group on which decisions have been made, Takoma Oyj and its subsidiaries Takoma Gears Oy and Tampereen Laatukoneistus Oy have on December 9, 2013 filed business restructuring proceedings applications at the District Court of Pirkanmaa. The filing of the applications may have an impact on business, depending on the reactions of customers and suppliers. In order to reduce the negative impact and safeguard undisturbed operations, the company has been in contact with both customers and suppliers and has discussed the situation of each company and the reasons for it with different interest groups. Takoma’s financial statements have been prepared on the assumption that business will continue. This will require that admission into the business restructuring process is granted, additional finance is acquired, loan periods are extended, and the profitability of operations is improved.
EVENTS AFTER THE REVIEW PERIOD
On December 3, 2013, Panostaja Oyj announced that it was divesting its Supports segment and selling its shares in the segment's parent company, Kannake Oy, to a group of Tampere-based investors and existing managers. This divestment is in keeping with Panostaja’s strategy and supports its active portfolio development objective. Panostaja does not record a major sales profit from the transaction.
On December 9, 2013, Panostaja announced that Takoma Oyj and its subsidiaries Takoma Gears Oy and Tampereen Laatukoneistus Oy have on December 9, 2013 filed business restructuring proceedings applications under the Restructuring of Enterprises Act at the District Court of Pirkanmaa in order to complete the reorganization measures of the Group on which decisions have been made.
The Takoma Group has implemented significant structural and operational changes aiming to restore the Group’s profitability. Furthermore, as previously reported, the Group has negotiated to reorganize its financial structure and change its loan repayment periods.
Takoma has negotiated with its main owner and main investor on the need to acquire financing for the shutdown costs and development of operations. The negotiations have not reached a mutual understanding of such matters as extending the loan periods and how to finance the costs arising from the reorganization measures of the operating companies. With the protraction of negotiations, Takoma’s financial standing has become difficult.
Panostaja Oyj owns 63.05% of Takoma Oyj. The value of Takoma Oyj’s shares on the balance sheet of Panostaja Oyj’s parent company on October 31, 2013 was MEUR 3.1.
Furthermore, Panostaja Oyj’s parent company has receivables of MEUR 1.4.
Goodwill concerning the Takoma segment on Panostaja Oyj’s consolidated balance sheet is MEUR 2.2.
On October 31, 2013, Panostaja announced that Ilkka Mujunen M.Sc. (Tech.) had been invited to become Managing Director of Heatmasters Group Oy. Mujunen assumed his duties as Managing Director on November 27, 2013.
PROSPECTS FOR THE NEXT FINANCIAL YEAR
In accordance with its business strategy, Panostaja Group focuses on increasing shareholder value in the segments owned by the Group. The development of shareholder value will be constantly monitored as part of a changing operating environment, and decisions on the development or divestment of business areas will be made in order to maximize the shareholder value. Active development of shareholder value, the effective allocation of capital and finance opportunities create a solid foundation for operational expansion. The need for ownership arrangements in SMEs enables both growth in existing segments and expansion into new ones.
Economic prospects in the fields of the existing segments are strongly tied to the prospects of customer enterprises. The current economic prospects remain uncertain and difficult to predict, and the growth forecasts have generally had to be cut, particularly due to slow growth in the export industry. In the various segments of Panostaja Group, prospects vary from cautiously positive to pessimistic. The challenges in the forecastability of the technology industry or weakening prospects may create a need for consolidated goodwill write-downs. The prospects for new construction have also declined during the current year and, during the winter months in particular, demand may be weak.
The market still provides sufficient opportunities for corporate acquisitions, and Panostaja Group aims to implement its growth strategy by means of controlled acquisitions, particularly in current segments, but new potential segments are also being actively studied. Preparation for divestments is being continued as part of the ownership strategies of segments.
To continue Takoma’s operations, it must gain admission into the business restructuring process, additional financing must be acquired, loan periods must be extended and the profitability of operations must be improved. Takoma’s failure to secure the continuation of business operations does not impact the operational preconditions of the Panostaja Group.
The Group’s comparable net sales in the 2014 financial year are expected to be at the same level or better than in 2013 (MEUR 176.2). It is expected that the Group’s comparable EBIT (MEUR -0.6) will improve in the 2014 financial period.
The divestment of the Supports segment from the Group has been taken into account in results management.
Panostaja Oyj Board of Directors For further information, contact CEO Juha Sarsama: tel. +358 40 774 2099.
Panostaja Oyj Juha Sarsama CEO
All forecasts and assessments presented in this interim report bulletin are based on the current outlook of the Group and the views of the Management of the various business areas with regard to the state of the economy and its development. The results attained may be substantially different.
ACCOUNTING PRINCIPLES
This financial statement bulletin has been prepared in accordance with the recording and valuation principles of the International Financial Reporting Standards (IFRS) in line with the IAS 34 standard.
The financial statement bulletin has not been audited.
| INCOME STATEMENT | 08/13-10/13 | 08/12-10/12 | 11/12-10/13 | 11/11-10/12 | |||||
| 3 months | 3 months | 12 months | 12 months | ||||||
| (EUR 1,000) | |||||||||
| Net sales | 49,671 | 39,826 | 179,618 | 147,897 | |||||
| Other operating income | 739 | 534 | 1,470 | 1,170 | |||||
| Costs in total | 47,312 | 36,743 | 171,142 | 138,425 | |||||
| Depreciations, amortizations and impairment | 2,723 | 3,590 | 10,362 | 7,413 | |||||
| Operating profit | 375 | 27 | -416 | 3,229 | |||||
| Financial income and expenses | -788 | -1,505 | -3,178 | -3,645 | |||||
| Share of associated company profits | -186 | -135 | -110 | 387 | |||||
| Profit before taxes | -599 | -1,613 | -3,704 | -29 | |||||
| Income taxes | -635 | -1,538 | -2,423 | -1,881 | |||||
| Profit/loss from retained operations | -1,233 | -3,151 | -6,127 | -1,910 | |||||
| Profit/loss from discontinued operations | 275 | 67 | 607 | -580 | |||||
| Profit/loss for the financial period | -958 | -3,084 | -5,520 | -2,490 | |||||
| Attributable to | |||||||||
| shareholders of the parent company | -376 | -2,831 | -4,628 | -1,984 | |||||
| minority shareholders | -582 | -253 | -892 | -506 | |||||
| Earnings per share from retained operations | |||||||||
| EUR, undiluted | -0.013 | -0.054 | -0.102 | -0.027 | |||||
| Earnings per share from retained operations | |||||||||
| EUR, diluted | -0.013 | -0.054 | -0.102 | -0.027 | |||||
| Earnings per share from discontinued operations | |||||||||
| EUR, undiluted | 0.005 | -0.002 | 0.012 | -0.011 | |||||
| Earnings per share from discontinued | |||||||||
| operations EUR, diluted | 0.005 | -0.002 | 0.010 | -0.011 | |||||
| Earnings per share on retained and discontinued | |||||||||
| operations EUR, undiluted | -0.007 | -0.055 | -0.090 | -0.039 | |||||
| Earnings per share on retained and discontinued | |||||||||
| operations EUR, diluted | -0.007 | -0.055 | -0.090 | -0.039 | |||||
| EXTENSIVE INCOME STATEMENT | |||||||||
| Items of the extensive income statement | -958 | -3,084 | -5,520 | -2,490 | |||||
| Translation differences | -7 | 103 | |||||||
| Extensive income statement for the period | -958 | -3,084 | -5,527 | -2,387 | |||||
| Attributable to | |||||||||
| shareholders of the parent company | -376 | -2,831 | -4,628 | -1,984 | |||||
| minority shareholders | -582 | -253 | -892 | -506 | |||||
| BALANCE SHEET | October 31, 2013 | October 31, 2012 | |||||
| (EUR 1,000) | |||||||
| ASSETS | |||||||
| Non-current assets | |||||||
| Goodwill | 41,929 | 34,348 | |||||
| Other intangible assets | 8,079 | 6,081 | |||||
| Property, plant and equipment | 15,153 | 18,996 | |||||
| Interests in associates | 3,714 | 3,824 | |||||
| Deferred tax assets | 4,070 | 4,623 | |||||
| Other non-current assets | 8,699 | 8,452 | |||||
| Non-current assets total | 81,644 | 76,324 | |||||
| Current assets | |||||||
| Stocks | 15,437 | 18,639 | |||||
| Trade receivables and other non-interest-bearing receivables | 30,835 | 25,293 | |||||
| Short-term investments | 8,400 | ||||||
| Cash and cash equivalents | 7,970 | 12,347 | |||||
| Current assets total | 62,641 | 56,278 | |||||
| Held-for-sale non-current asset items | 4,348 | ||||||
| Assets in total | 148,633 | 132,601 | |||||
| EQUITY AND LIABILITIES | |||||||
| Equity attributable to parent company shareholders | |||||||
| Share capital | 5,569 | 5,569 | |||||
| Share premium account | 4,646 | 4,646 | |||||
| Translation difference | -73 | -66 | |||||
| Invested unrestricted equity fund | 14,508 | 16,523 | |||||
| Equity convertible loan | 7,390 | ||||||
| Retained earnings | -1,979 | 1,981 | |||||
| Total | 30,061 | 28,653 | |||||
| Minority interest | 19,016 | 16,520 | |||||
| Equity total | 49,077 | 45,173 | |||||
| Liabilities | |||||||
| Deferred tax liabilities | 1,672 | 1,505 | |||||
| Equity convertible subordinated loan | 14,556 | 14,414 | |||||
| Non-current liabilities | 28 046 | 27,752 | |||||
| Current liabilities | 54,965 | 43,756 | |||||
| Liabilities total | 99,240 | 87,428 | |||||
| Liabilities related to non-current asset items held for sale | 316 | ||||||
| Equity and liabilities in total | 148,633 | 132,601 | |||||
| CASH FLOW STATEMENT | 11/2012-10/2013 | 11/2011-10/2012 | |||||
| (EUR 1,000) | |||||||
| Business operations | |||||||
| Profit/loss for the financial period | -5,520 | -2,490 | |||||
| Adjustments: | |||||||
| Depreciations | 10,482 | 7,607 | |||||
| Financial income and costs | 3,220 | 3,840 | |||||
| Share of associated company profits | 110 | -400 | |||||
| Taxes | 2,569 | 2,207 | |||||
| Sales profits and losses from property, plant and equipment | -1,828 | 34 | |||||
| Other earnings and expenses with no payment attached | 1,765 | 704 | |||||
| Operating cash flow before change in working capital | 10,798 | 11,502 | |||||
| Change in working capital | |||||||
| Change in non-interest-bearing receivables | -1,781 | -77 | |||||
| Change in non-interest-bearing liabilities | 2,919 | 3,247 | |||||
| Change in stocks | 1,768 | 2,210 | |||||
| Change in working capital | 2,906 | 5,380 | |||||
| Operating cash flow before financial items and taxes | 13,704 | 16,882 | |||||
| Financial items and taxes: | |||||||
| Interest paid | -3,111 | -3,509 | |||||
| Interest received | 325 | 384 | |||||
| Taxes paid | -3,138 | -3,170 | |||||
| Financial items and taxes | -5,924 | -6,295 | |||||
| Operating net cash flow | 7,780 | 10,586 | |||||
| Investments | |||||||
| Investments in intangible and tangible assets | -5,766 | -4,417 | |||||
| Sales of intangible and tangible assets | 2,060 | 273 | |||||
| Acquisition of subsidiaries with time-of-acquisition liquid assets deducted | -15,482 | -1,806 | |||||
| Sale of subsidiaries | 2,258 | 125 | |||||
| Sale of associated companies | 0 | 8 | |||||
| Capital gains from sales of other shares | 6 | 3 | |||||
| Loans receivable repaid | -128 | -128 | |||||
| Investment net cash flow | -17,052 | -5,942 | |||||
| Finance | |||||||
| Share issue | 5,102 | 1,521 | |||||
| Hybrid loan | 7,500 | 0 | |||||
| Loans drawn | 25,577 | 12,594 | |||||
| Loans repaid | -21,543 | -17,916 | |||||
| Disposal of own shares | 46 | 44 | |||||
| Dividends paid | -3,156 | -3,216 | |||||
| Finance net cash flow | 13,527 | -6,972 | |||||
| Change in liquid assets | 4,254 | -2,328 | |||||
| Liquid assets at the beginning of the period | 12,347 | 14,643 | |||||
| Effect of exchange rates | -8 | 32 | |||||
| Liquid assets at the end of the period | 16,593 | 12,347 | |||||
Liquid assets at the end of the period include liquid assets from the Supports segment classified as assets held for sale.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| (EUR 1,000) | Share capital | Share premium account | Invested unrestricted equity fund | Translation differences | Profit funds | Equity convertible loan | Minority shareholders’ interest | Total |
| Equity | 5,569 | 4,646 | 19,023 | -169 | 4,047 | 14,270 | 47,386 | |
| November 1, 2011 | ||||||||
| Profit for the financial period | -1,984 | -506 | - 2,490 | |||||
| Profit and costs recorded during the financial period, total | -1,984 | -506 | - 2,490 | |||||
| Dividends paid | -660 | -660 | ||||||
| Repayment of capital | -2,557 | -2,557 | ||||||
| Share subscription | ||||||||
| Share issue | ||||||||
| Disposal of own shares | 44 | 44 | ||||||
| Reward scheme | 13 | 13 | ||||||
| Translation differences | 103 | 103 | ||||||
| Changes in minority interest | -82 | 3,416 | 3,334 | |||||
| Other changes in equity, total | -2,500 | 103 | -2,066 | 2,250 | -2,213 | |||
| Equity | 52 | |||||||
| October 31, 2012 | 5,569 | 4,646 | 16,523 | -66 | 1,981 | 16,520 | 45,173 | |
| Equity | 5,569 | 4,646 | 16,523 | -66 | 1,981 | 16,520 | 45,173 | |
| November 1, 2012 | ||||||||
| Profit for the financial period | -4,628 | -892 | -5,520 | |||||
| Profit and costs recorded during the financial period, total | -4,628 | -892 | -5,520 | |||||
| Dividends paid | -1,116 | - 1,116 | ||||||
| Repayment of capital | -2,040 | -2,040 | ||||||
| Equity convertible loan | 7,390 | 7,390 | ||||||
| Disposal of own shares | 38 | 38 | ||||||
| Reward scheme | -13 | -13 | ||||||
| Translation differences | -7 | 7 | 0 | |||||
| Changes in minority interest | 661 | 4,505 | 5,166 | |||||
| Other changes in equity, total | -2,015 | -7 | 668 | 7,390 | 3,388 | 9,424 | ||
| Equity | 5,569 | 4,646 | 14,508 | -73 | -1,979 | 7,390 | 19,016 | 49,077 |
| October 31, 2013 |
Loan covenants
The loans of the Takoma segment are affected by loan covenants. Under the terms and conditions of the covenants, the equity ratio of the Takoma Group should be at least 35% and the ratio between interest-bearing net financial liabilities and the operating margin should not exceed 100. The Takoma Group has not been able to meet the covenant terms, and the main investor may call its loans. Since the Takoma Group has not on closing the books received a consent clause from its main investor, all loans from this investor, MEUR 3.60, have been presented in current loans.
Goodwill impairment testing
The Group performed goodwill impairment testing on the situation of September 30, 2013. An exception to this is the Takoma segment, the testing of which has been performed based on the situation of July 31, 2013 as part of the decisions made on the restructuring of the business operations of the segment. As a result of this testing, an amortization loss of MEUR 2.3 was recorded from the goodwill of the Takoma Group. Increasing the forecast discount rate by one percentage point would have resulted in a write-down of MEUR 1.1, and a decrease of the operating margin by one percentage point would have resulted in a write-down of MEUR 2.2.
| KEY FIGURES | |||
| 10/2013 | 10/2012 | ||
| Equity per share (EUR) | 0.59 | 0.56 | |
| Earnings per share, diluted (EUR) | -0.09 | -0.04 | |
| Earnings per share, undiluted (EUR) | -0.09 | -0.04 | |
| Average number of shares during financial period, 1,000 pcs. | 51,211 | 51,157 | |
| Number of shares at end of financial period, 1,000 pcs. | 51,733 | 51,733 | |
| Share issues/CL exchanges during financial period, 1,000 pcs. | 0 | 0 | |
| Number of shares, 1,000, diluted | 58,029 | 57,075 | |
| Return on equity,% | -11.7 | -5.4 | |
| Return on investment,% | 0.5 | 1.8 | |
| Gross capital expenditure | |||
| To permanent assets (MEUR) | 21.2 | 6.2 | |
| % of net sales | 11.8 | 4.2 | |
| Interest-bearing liabilities | 60.1 | 56.6 | |
| Equity ratio (%) | 33.2 | 34.1 | |
| Average number of employees | 1,251 | 1,152 | |
GROUP DEVELOPMENT BY QUARTER
| (MEUR) | Q4/13 | Q3/13 | Q2/13 | Q1/13 | Q4/12 | Q3/12 | Q2/12 | Q1/12 | |
| Net sales | 49.7 | 43.9 | 44.7 | 41.4 | 39.8 | 36.7 | 35.7 | 35.6 | |
| Other operating income | 0.7 | 0.2 | 0.3 | 0.2 | 0.5 | 0.2 | 0.3 | 0.1 | |
| Costs in total | -47.3 | -40.4 | -42.6 | -40.9 | -36.7 | -34.4 | -33.9 | -33.5 | |
| Depreciations, amortizations and impairment | -2.7 | -4.3 | -1.9 | -1.5 | -3.6 | -1.3 | -1.3 | -1.2 | |
| EBIT | 0.4 | -0.5 | 0.5 | -0.8 | 0.0 | 1.3 | 0.9 | 1.1 | |
| Finance items | -0.8 | -0.8 | -0.8 | -0.8 | -1.5 | -0.8 | -0.6 | -0.8 | |
| Share of associated company profits | -0.2 | 0.2 | 0.0 | -0.1 | -0.1 | 0.1 | 0.4 | 0.1 | |
| Profit before taxes | -0.6 | -1.1 | -0.3 | -1.7 | -1.6 | 0.6 | 0.6 | 0.4 | |
| Taxes | -0.6 | -0.8 | -0.5 | -0.5 | -1.5 | -0.3 | -0.1 | 0.0 | |
| Profit from continuing operations | -1.3 | -1.9 | -0.8 | -2.2 | -3.2 | 0.3 | 0.5 | 0.4 | |
| Profit from discontinued operations | 0.3 | 0.1 | 0.1 | 0.1 | 0.1 | 0.4 | -0.3 | -0.8 | |
| Profit for the financial period | -1.0 | -1.8 | -0.7 | -2.1 | -3.1 | 0.7 | 0.2 | -0.4 | |
| Minority interest | -0.6 | -0.4 | 0.3 | -0.2 | -0.3 | -0.2 | -0.2 | 0.2 | |
| Parent company shareholder interest | -0.4 | -1.4 | -1.0 | -1.9 | -2.8 | 1.0 | 0.4 | -0.6 |
GUARANTEES GIVEN
| (EUR 1,000) | 2013 | 2012 | |
| Guarantees given on behalf of Group companies | |||
| Enterprise mortgages | 41,449 | 40,861 | |
| Pledges given | 72,939 | 58,321 | |
| Other liabilities | 2,950 | 1,888 | |
| Other rental agreements | |||
| In one year | 9,227 | 7,779 | |
| In over one year but within five years maximum | 16,854 | 17,466 | |
| In over five years | 2,438 | 2,833 | |
| Total | 28,519 | 28,078 |
SEGMENT INFORMATION
| NET SALES | 08/13-10/13 | 08/12-10/12 | 11/12-10/13 | 11/11-10/12 |
| (EUR 1,000) | ||||
| Digital Printing Services | 14,162 | 9,533 | 50,777 | 35,078 |
| Safety | 9,482 | 7,951 | 31,831 | 29,009 |
| Takoma | 5,956 | 6,966 | 23,233 | 28,877 |
| Value-added Logistics | 8,092 | 7,248 | 29,907 | 23,307 |
| Ceiling Materials | 3,249 | 0 | 12,760 | 0 |
| Spare Parts for Motor Vehicles | 2,670 | 2,852 | 10,274 | 10,410 |
| Fittings | 3,005 | 2,546 | 11,909 | 10,316 |
| Heat Treatment | 2,119 | 1,818 | 5,744 | 7,480 |
| Supports | 898 | 1,022 | 3,396 | 4,015 |
| Other | -8 | 17 | 34 | 65 |
| Eliminations | 46 | -128 | -248 | -658 |
| Group in total | 49,671 | 39,826 | 179,618 | 147,897 |
| OPERATING PROFIT | ||||
| (EUR 1,000) | ||||
| Digital Printing Services | 1,944 | 1,909 | 6,351 | 5,503 |
| Safety | 964 | 466 | 1,574 | 1,083 |
| Takoma | -2,589 | -2,905 | -7,603 | -4,991 |
| Value-added Logistics | 803 | 584 | 1,699 | 1,395 |
| Ceiling Materials | 211 | 0 | 873 | 0 |
| Spare Parts for Motor Vehicles | 213 | 451 | 813 | 1,090 |
| Fittings | -7 | 68 | -152 | 395 |
| Heat Treatment | -713 | 212 | -1,469 | 1,013 |
| Supports | 67 | 21 | 177 | 324 |
| Other | -519 | -779 | -2,298 | -2,584 |
| Group in total | 375 | 26 | -36 | 3,229 |
| ASSETS | LIABILITIES | |||
| October 31, 2013 | October 31, 2012 | October 31, 2013 | October 31, 2012 | |
| Digital Printing Services | 42,782 | 27,161 | 18,810 | 10,899 |
| Safety | 19,657 | 18,333 | 17,372 | 16,592 |
| Takoma | 20,058 | 27,854 | 18,033 | 16,205 |
| Value-added Logistics | 13,114 | 11,501 | 6,093 | 6,117 |
| Ceiling Materials | 5,718 | 0 | 3,615 | 0 |
| Spare Parts for Motor Vehicles | 4,462 | 4,869 | 3,566 | 4,241 |
| Fittings | 10,772 | 9,682 | 8,584 | 7,475 |
| Heat Treatment | 4,906 | 6,769 | 2,817 | 2,706 |
| Supports | 2,019 | 1,952 | 316 | 297 |
| Other | 31,823 | 31,884 | 27,028 | 30,300 |
| Eliminations | -6,677 | -7,404 | -6,677 | -7,404 |
| Group in total | 148,633 | 132,601 | 99,556 | 87,428 |
The Other segment includes the transferred balance items of discontinued segments for the reference year.
| SEGMENT INFORMATION BY QUARTER | ||||||||
| Net sales, MEUR | 4Q/13 | 3Q/13 | 2Q/13 | 1Q/13 | 4Q/12 | 3Q/12 | 2Q/12 | 1Q/12 |
| Digital Printing Services | 14.2 | 12.3 | 13.4 | 10.9 | 9.5 | 8.3 | 8.9 | 8.3 |
| Safety | 9.5 | 7.0 | 7.8 | 7.6 | 8.0 | 6.4 | 7.3 | 7.3 |
| Takoma | 6.0 | 6.0 | 5.8 | 5.5 | 7.0 | 6.7 | 7.5 | 7.7 |
| Value-added Logistics | 8.1 | 7.6 | 7.2 | 7.1 | 7.2 | 7.5 | 4.1 | 4.4 |
| Ceiling Materials | 3.2 | 3.5 | 3.0 | 3.0 | 0.0 | 0.0 | 0.0 | |
| Spare Parts for Motor Vehicles | 2.7 | 2.6 | 2.5 | 2.5 | 2.9 | 2.6 | 2.5 | 2.4 |
| Fittings | 3.0 | 2.8 | 3.1 | 3.0 | 2.5 | 2.3 | 2.7 | 2.7 |
| Heat Treatment | 2.1 | 1.3 | 1.2 | 1.1 | 1.8 | 1.8 | 1.9 | 2.0 |
| Supports | 0.9 | 0.9 | 0.8 | 0.8 | 1.0 | 1.1 | 1.0 | 0.9 |
| Other | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Eliminations | 0.0 | -0.1 | -0.1 | -0.1 | -0.1 | -0.1 | -0.2 | -0.2 |
| Group in total | 49.7 | 43.9 | 44.7 | 41.4 | 39.8 | 36.7 | 35.7 | 35.6 |
| Operating profit (MEUR) | 4Q/13 | 3Q/13 | 2Q/13 | 1Q/13 | 4Q/12 | 3Q/12 | 2Q/12 | 1Q/12 |
| Digital Printing Services | 1.9 | 1.7 | 1.7 | 1.0 | 1.9 | 1.0 | 1.4 | 1.2 |
| Safety | 1.0 | 0.4 | 0.4 | -0.2 | 0.5 | 0.0 | 0.4 | 0.3 |
| Takoma | -2.6 | -3.4 | -0.9 | -1.0 | -2.9 | -0.5 | -1.0 | -0.5 |
| Value-added Logistics | 0.8 | 0.5 | 0.3 | 0.1 | 0.6 | 0.5 | 0.1 | 0.2 |
| Ceiling Materials | 0.2 | 0.3 | 0.1 | 0.2 | 0.0 | 0.0 | 0.0 | 0.0 |
| Spare Parts for Motor Vehicles | 0.2 | 0.3 | 0.1 | 0.2 | 0.5 | 0.3 | 0.2 | 0.2 |
| Fittings | 0.0 | 0.2 | -0.2 | -0.2 | 0.1 | 0.1 | 0.2 | 0.1 |
| Heat Treatment | -0.7 | -0.1 | -0.3 | -0.3 | 0.2 | 0.2 | 0.2 | 0.4 |
| Supports | 0.1 | 0.1 | 0.0 | 0.0 | 0.0 | 0.2 | 0.0 | 0.1 |
| Other | -0.5 | -0.6 | -0.6 | -0.6 | -0.8 | -0.4 | -0.6 | -0.8 |
| Group in total | 0.4 | -0.5 | 0.5 | -0.8 | 0.0 | 1.3 | 0.9 | 1.1 |
Panostaja is an investment company developing Finnish SMEs in the role of an active majority shareholder. The company aims to be the most sought-after partner for business owners selling their companies as well as for the best managers and investors. Together with its partners, Panostaja increases the Group's shareholder value and creates Finnish success stories.
At the time of the closing of the books, Panostaja had nine segments engaging in business operations. Flexim Security Oy (Safety) is a specialist in security technology and services, locking, door automation and access control products and solutions. Heatmasters Group (Heat Treatment) offers thermal treatment services of metals in Finland and internationally, and produces, develops and markets heat treatment technology. KL-Varaosat (Spare Parts for Motor Vehicles) is an importer, wholesale dealer and retailer of original spare parts and supplies for Mercedes Benz and BMW cars. Kopijyvä Oy & DMP-Digital Media Partners Oy (Digital Printing Services) form Finland’s largest company offering digital printing services and publication and production services. Suomen Helakeskus Oy (Fittings) is a major wholesaler of construction and furniture fittings in Finland. Selog Oy (Ceiling Materials) is a specialty supplier and wholesaler of ceiling materials. Takoma Oyj (Takoma) is a listed machine shop group with an entrepreneur-driven business model. Toimex Oy (Supports) works in the HEPAC field, manufacturing and selling supports. Vindea Oy (Value-added Logistics) is an enterprise specialized in value-added logistics services for the Finnish metal industry.
