Normet Group Financial Statements 2017

Transcription

1 Normet Group Financial Statements

2 EXECUTIVE SUMMARY Overall market outlook continue developing positively both in mining and tunneling. Strong demand seen on both industries and improving trend continue on a rolling monthly basis. Equipment business has developed favorably during the year resulting in a +42% growth yoy compared to Normet has increased the capacity to meet the growing demand. Despite some challenges with the big increase in volume during the first half of the year, the second half was balanced with the capacity increases. Demand in the Equipment business is expected to remain on a good level also during the Normet Service business reached a growth of +28 % yoy compared to Growth was generated across all regions supported by strong Equipment business. Demand in Service business is expected to remain on good level also during the year GCCT (Ground Control and Construction Technologies) has not been progressing according the expectations and grew only modestly +7% yoy compared to 2016, falling short of expectations. Full year EBITDA fell short of target and was 7,7%, impacted negatively by ramp up costs of Equipment production capacity 1.0MEUR during the first half of the year. During the year Normet Group had an overall efficiency program for inventory efficiency and cash cycle improvement and sizeable accruals 4,3M where made related to inventory write offs ( 3,1M ) and accounts receivable accruals ( 1,2M ). Farmi Forest Oy market situation has remained challenging and Net Result was 1,5 MEUR. Operative efficiency program within Farmi Forest is ongoing and new products have been launched during the year. In the beginning of Normet started the Group wide project Cash To Grow to sustainably release ~10 MEUR in working capital by the end of the year. During the project, the NWC/Sales % has decreased from 32,5% to 28,0%. The improvement corresponds to a cash impact of 11,7 MEUR with the sales level. EUR was strengthening against all of the major currencies during the effecting unrealized exchange rate losses of 5,1MEUR. Majority of the unrealized currency exchange losses were caused by intercompany debts, intercompany accounts receivables and intercompany accounts payables. During the year Normet received significant orders including Hindustan Zinc major order for equipment, spare parts and field services and generally the order intake developed well ending to very strong order backlog for Normet and JCHX Mining Management Co, Ltd negotiated to establish a joint venture in China and contract was signed on August 3 rd. Newly established Joint Venture Company Kingnor Mining Machinery Company Ltd was inaugurated at March 6 th, Outlook for 2018 is cautiously positive. Strong growth is expected to continue in Equipment and Service business and GCCT is expected to have moderate growth. Based on the current market outlook, customer business activity and order backlog, the management expects sales to be in the range of MEUR and the EBITDA to be in the range of 10 12% for the year Applied sales price increases and overall group wide cost efficiency program should have positive impact in the profitability towards the year end Robin Lindahl President, CEO Normet Group

3 NORMET GROUP OY INCOME STATEMENT AND BALANCE SHEET

4 NORMET GROUP OY CASH FLOW STATEMENT

5 NORMET GROUP OY LEADERSHIP TEAM, SHAREHOLDERS, MATERIAL RISK FACTORS AND MATERIAL DEBT INSTRUMENTS Normet Group Oy Leadership Team : Robin Lindahl, President and CEO Riku Mäkinen, CFO Mike Rispin, Senior Vice President Market Operations Kari Hämäläinen, Senior Vice President Equipment Business Line Mikko Immonen, Senior Vice President Services Business Line Himanshu Kapadia, Senior Vice President Ground Control and Construction Technologies Odd Björn Kleven, Senior Vice President Solution Business Kimmo Karihtala, General Counsel Sanna Pekari, CDO Niina Pesonen, Vice President, Human Resources Normet Group Oy Shareholders: Shareholder % of shares Cantell Oy 72,79 % Normet Management Oy 22,63 % Orox Oy 4,57 % Material Debt Instruments: 1) Hybrid Equity Bond, EUR 30m 2) Loan Facility, EUR 70.8m (value at December 31st, ) Material Risk factors: General outlook in mining and tunneling is more optimistic than one year ago but all the geopolitical uncertainty can cause unexpected risks in business and delays in the projects. Equipment and Service business can also be influenced by Supply Chain related risks with availability of parts and components as well as availability of logistics capacity. Volatility in the foreign exchange markets can cause unexpected variation in the realized and unrealized currency values in international business despite of hedging policy applied.

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