Review by the CEO Jorma Wiitakorpi Annual General Meeting 12.4.2018
EFORE Overview
Efore The Trusted Power Partner KEY FACTS Net Sales 69,.9 M (2017) 432 employees (average 2017) Established in 1975 About 4000 shareholders Quoted on Nasdaq Helsinki Efore Plc is an international group specialised in design, development and production of demanding power products. Efore designs and manufactures cutting edge power conversion products; that offer superior energy efficiency, reliability, more intelligent designs, flexibility and creativity for the telecommunications including networks and broadcasting, industrial, medical, LED lighting and transportation markets. Efore competences and know-how are embodied in the solutions we provide to our customers: high efficiency and high reliability.
Efore Worldwide Stockholm, Sweden Tampere, Finland Espoo, Finland Stroudsburg, USA Tunis, Tunisia Osimo, Italy Hong Kong, China Suzhou/Wuxi, China Headquarters Technology and Development Production Sales office Efore Plc is headquartered in Espoo, Finland, with major offices in Italy, China and Sweden, production unit in Tunisia, and Sales and Marketing organizations in Europe, North America and Asia.
We re Proud of Our Worldwide Customers Industry leading customers globally recognize Efore Group as a reliable and trusted partner for their power supply applications. DEFENCE INDUSTRIAL DC SYSTEM DIGITAL POWER TELECOM LIGHTING MEDICAL HOUSEHOLD APPLIANCES
Awarded Supplier 2013 2014 2015 2016 SUPPLIER OF THE YEAR ABB Substation Automation Products SUPPLIER OF THE YEAR Ericsson SUPPLIER OF THE YEAR & BEST IN CLASS SUPPLIER National Instruments BEST IN CLASS SUPPLIER National Instruments BEST IN CLASS SUPPLIER QUALITY AWARD & TOP TIER 1 SUPPLIER National Instruments
Financial Statements 2017 7
Financial Year 2017 in Brief Despite the decline in the net sales, the operating result remained slightly negative but improved clearly compared to the previous year. Annual fixed costs decreased significantly and active measures to streamline the consolidated balance sheet yielded results. The outsourcing of manufacturing in China was finalised, and the functions related to manufacturing, procurement, R&D and sales at Suzhou facility were relocated on the site of the manufacturing partner in Wuxi. In the industrial sector, the Digital Power product portfolio was expanded and a new standard power platform was commercialized. Development projects concerning system level solutions for the telecom market were continued. A review process to evaluate different structural alternatives for securing the long-term profitability of the telecom business was initiated.
Key Indicators Key indicators, EUR million 2017 2016 Net Sales 69.9 75,4 -Telecommunication sector 31,7 34,2 -Industrial sector 38,2 41,2 Adjusted operating result -0,2-4,8 Operating result -0,2-9,7 Result before taxes -1,0-10,4 Net result -0,6-11,4 Earnings per share, EUR -0,01-0,22 Solvency ratio, % 17,9 15,7 Gearing, % 115,6 99,5 Cash flow from business operations 4,6-1,1
Net Sales and Adjusted Operating Result 85 70 55 74,5 85,3 89,9 75,4 69,9 40 25 10-5 MEUR -1,6-4,8-4,3 0,1-0,2 2013 2014 2015 2016 2017 Net Sales Adjusted operating result
Net Sales Development 45 40 0,7 1 0,5 35 30 25 20 15 23,1 21,5 19,7 19,9-0,9 18,3 0-0,5-1 -1,5 Industrial Telecom Adjusted Operating Result 10 5 0 19,6 18 19,4 16,2-2,2-2,3 12,2-2,6 H2/2015 H1/2016 H2/2016 H1/2017 H2/2017-2 -2,5-3
Balance Sheet: Assets 60 50 40 30 20 10 0 m 15,8 17,3 11,3 8,7 14,8 8,8 6,4 4,5 Dec. 31, 2016 Dec. 31, 2017 Non current assets Inventories Trade & other receivables Cash and cash equivalents
Balance Sheet: Equity and Liabilities 60 50 7,6 40 30 2,0 7,0 2,7 Equity Non-current liabilities 20 10 38,7 29,6 Current liabilities 0 m De. 31, 2016 Dec. 31, 2017
Detailed information on Annual Accounts can be found in Annual Report 2017 - Group level from page 13 - Parent company from page 53 - Auditor s report from page 67
Financial Estimate 2018 Due to the financial situation of the Group and especially uncertainty related to the development of the telecommunications sector giving earnings guidance is exceptionally challenging. Due to this reason the company does not give earnings guidance for 2018. Efore investigates different structural alternatives to secure the long-term profitability of the telecom business
Thank You