TIDMHSN
Edegem, Belgium - London, UK - 17 May, 2010 - Hansen Transmissions International
NV ("Hansen", "the Group" or "the Company") (LSE ticker 'HSN') today announces
its results for the 3 months ended 31 March 2010 and for the 12 months ended 31
March 2010.
HIGHLIGHTS FINANCIAL YEAR 2010
* Revenue decline of 12.6%, in line with adjusted guidance of approximately
15% revenue decline given on 20 January 2010
* EBITDA1 margin at 7.8% (financial year 2009:15.4%) up from 6.0% for the
first half of the financial year. Net loss of 8.6 million EUR, compared to a
net profit of 45 million EUR for last year
* Net financial debt at 129 million EUR on 31 March 2010 - reduction of 59
million EUR in the last quarter of the financial year, as a result of
intensified working capital management & careful deployment of expansion
capex
* Consolidated Net Senior Debt / EBITDA1 of 3.42 x at 31 March 2010, well
within the renegotiated covenant level of 5.25 x for that period
* Actively managing phasing of capacity expansion plan while maintaining a
target of delivering 14,300 MW of capacity in financial year 2013. Reduced
capex in FY 2010 and FY 2011 to better align with anticipated customer
demand
* Ongoing management of fixed cost base and continued operational
efficiencies
* Further diversification of the customer base; Hansen announces today a
contract with Sinovel, a leading Chinese wind turbine manufacturer
* Tentative signs of recovery in a market environment that remains
challenging, with Hansen continuing to be well-positioned with its growing
portfolio of major customers
1 EBITDA = earnings before interest, tax, depreciation & amortisation
Alex De Ryck, CEO of Hansen commented:
"At the core of Hansen's strategy is our mission to reduce the kWh cost of
renewable energy. We remain confident in the strong medium-term outlook for the
global renewable energy market and although the past year has been challenging,
we are beginning to see the first signs of recovery. We believe this trend will
start to gain strength during the second half of the calendar year. We are in a
strong position to benefit from the improving markets with well-invested
state-of-the-art manufacturing capacity, an optimized supply chain and a
restructured fixed cost base.
Despite a careful focus on our cost base, we continue to innovate and diversify
by adding important customers in strategically important regions. We are
particularly pleased today to announce the addition of Sinovel, a leading
Chinese wind player.
The past 12 months have been challenging for all Hansen's stakeholders but I
would especially like to thank our employees for their hard work and support in
these uncertain times. We are cautiously optimistic and Hansen is well placed to
take full advantage of the expected new growth phase in the renewable energy
industry."
OUTLOOK
Since early 2009, the volatility and challenges affecting the near term wind
market have been reflected in Hansen's financial results. This trend has
continued and Hansen believes the operating environment will remain challenging.
While the order book has seen significant rescheduling, our ongoing dialogue
with customers continues to suggest some optimism for improving industry
investment from the second half of the 2010 calendar year.
Hansen expects the first quarter of the financial year 2011 to be in line with
the last quarter of financial year 2010 and revenue for the financial year 2011
to be back-end loaded. Against this backdrop, we expect to see revenue growth
for the full financial year 2011 of around 5% to 10%, compared to the financial
year 2010.
Our expansion plans are phased and we remain both operationally and financially
flexible in the continued execution of our growth strategy. From our strategy of
profitable growth, we will continue to diversify our customer base and to
carefully deploy capital to meet their capacity requirements.
Our confidence in the medium and longer-term fundamentals of the wind industry
remains unchanged and we continue to be well positioned with a growing portfolio
of major customers.
ANALYST AND INVESTOR CONFERENCE CALL
Hansen will host an analyst presentation on the financial year 2010 results:
With: Alex De Ryck, CEO
On: Monday 17 May 2010 - 8.30 am UK time
At: Bank of America Merrill Lynch
Auditorium
Merrill Lynch Financial Center
2 King Edward Street
London EC1A 1HQ
Dial-in details: Dial-in number: +44 208 996 3920 Pass code: 749230
A replay of this analyst presentation will be available on the Investor
Relations section of Hansen's website as from Monday evening 17 May 2010 on
http://www.hansentransmissions.com/en/investorrelations.html .
INAUGURAL INVESTOR DAY
Hansen will host its first Investor Day at the Lommel plant in Belgium on 30
June 2010.
ANNUAL REPORT
The full Annual Financial Report for the financial year 2010 will be available
as from 26 May 2010.
ANNUAL SHAREHOLDERS' MEETING
Hansen will hold its annual shareholders' meeting for the financial year 2010 on
24 June 2010 in Edegem, Belgium.
The financial information reported in this release is presented in EUR 000 and has
been prepared in accordance with the recognition and measurement criteria of
IFRS as adopted by the European Union. The full annual report containing the
Consolidated Financial Statements for the 12 month period ended 31 March 2010
including the Auditor's Report will be available and published on the website of
Hansen under the Investor Relations
<http://www.hansentransmissions.com/en/investorrelations.html> section on 26 May
2010. The financial information in this report is in compliance with IFRS.
HANSEN CONSOLIDATED RESULTS - summary financial information
Consolidated Financial Statements for the year ended 31 March 2010 available on:
http://www.hansentransmissions.com/en/reports_publications.html
For the year| %|For the year | For the 3 | %| For the 3 |
ended| change| ended | months|change| months|
31 March| | 31 March |period ended| | period|
2010| | 2009 | 31 March| | ended|
| | | 2010| | 31 March|
| | | | | 2009|
=-----------------------+-------+------------- +------------+------+-----------+
Audited| | Audited | Unaudited| | Unaudited|
=-----------------------+-------+------------- +------------+------+-----------+
(EUR000)| | (EUR000) | (EUR000)| | (EUR000)|
| | | | | |
| | | | | |
| | | | | |
Revenue 532,413| -13%| 609,175 | 109,853| -31%| 158,573|
=-----------------------+-------+------------- +------------+------+-----------+
| | | | | |
| | | | | |
EBITDA (1) 41,593| -56%| 93,707 | 11,050| -60%| 27,369|
| | | | | |
Margin 7.8%| | 15.4% | 10.1%| | 17.3%|
| | | | | |
Net Profit | | | | | |
(loss) for | | | | | |
the period (8,564)| | 45,040 | 1,312| -92%| 17,212|
| | | | | |
| | | | | |
=-----------------------+-------+------------- +------------+------+-----------+
Total | | | | | |
shares - | | | | | |
weighted | | | | | |
av. 670,104,208| | 670,104,208 | 670,104,208| |670,104,208|
| | | | | |
EPS - | | | | | |
Basic (in | | | | | |
EUR) (0.013)| | 0.067 | 0.002| -91%| 0.022|
| | | | | |
| |
=-----------------------+-------+-------------
Net | |
financial | |
debt(2) 128,798| +4%| 124,106
=-----------------------+-------+-------------
Purchase | |
property, | |
plant & | |
equipment. 79,321| -64%| 221,588
=-----------------------+-------+-------------
Headcount 2,193| -11%| 2,456
=-----------------------+-------+-------------
(1) EBITDA = earnings before interest, tax, depreciation & amortization
(2) Net Financial debt is calculated as long-term and short-term financial debts
minus cash and short-term deposits
EXPLANATORY NOTE
The Group's results for financial year 2010 were significantly impacted by the
volatility and challenges in the wind market. Revenue for the full financial
year decreased 12.6% from the level achieved for the previous financial year.
The following table provides a breakdown of the revenue per gearbox type in the
financial years ended 31 March 2009 and 2010:
+---------+---------+--------+
(EUR000) | 2009 | 2010 | Change |
+-------------------------------------------------+---------+---------+--------+
| Revenue from the sale of Wind turbine gearboxes | 514,909 | 449,372 | -12.7% |
+-------------------------------------------------+---------+---------+--------+
| Revenue from the sale of Industrial gearboxes | 94,266 | 83,041 | -11.9% |
+-------------------------------------------------+---------+---------+--------+
| 609,175 | 532,413 | -12.6% |
+---------+---------+--------+
In the financial year 2010, Hansen incurred one-off costs of 1.2 million EUR
relating to expansion projects and 3.8 million EUR relating to redundancies in
Belgium, consisting of severance payments and costs related to early
retirements. These costs are included in EBITDA and EBIT.
Because of the challenges and volatility experienced in the wind sector during
financial year 2010, the Company adjusted its investments for wind gearbox
capacity expansion in India and China to reflect the anticipated market needs.
This resulted in a total investment in property, plant and equipment of 79
million EUR for the financial year 2010, compared to a planned capex of 158
million EUR at the start of the financial year 2010.
PEOPLE
NEW CHIEF EXECUTIVE OFFICER ("CEO")
The Board of Directors of Hansen appointed Alex De Ryck, previously Chief
Financial Officer of the Company since 2004, as the new CEO following the
decision by Ivan Brems to retire from his active executive duties as CEO of the
Company. The Board is in the process of appointing a successor of Alex De Ryck
for the position of CFO and will announce on this position in due course.
CHANGES IN THE MANAGEMENT COMMITTEE
Dr. ir. Peter Flamang, member of Hansen's Executive Committee since November
2007, left the Group on 11 February 2010 to pursue new challenges.
On 1 December 2009 Hansen appointed Luc De Proost as Chief Business Development
Officer. Luc is member of the Executive Committee since 2007 and prior to his
new appointment, he was Chief Expansion Officer, responsible for the wind
gearbox expansion projects in India and China.
EMPLOYEES
To align its workforce to the economic environment, the Company reduced its
headcount by 11% from 2,456 employees at the end of March 2009 to 2,193 at the
end of March 2010.
In Belgium, the number of employees decreased from 1,777 at 31 March 2009 to
1,544 at 31 March 2010, a decrease of 13% related to restructuring. Today the
Group has offices in Belgium, the United Kingdom, India, China, Australia, South
Africa, the USA and Brazil.
CORPORATE SOCIAL RESPONSIBILITY
Hansen aims to take into account the interests of all our stakeholders,
including customers, employees, investors, suppliers, partners and the
community. Our commitment to Corporate Social Responsibility (CSR) is confirmed
with the publication of our first detailed CSR report this year.
MARKET POSITION
WIND TURBINE GEARBOXES
Market update
In 2009, new installations of wind energy turbines worldwide reached
approximately 38,000 MW, representing a 35% increase in cumulative installations
over 2008. Current forecasts by BTM (Source: BTM Consult Aps "International Wind
Energy Development - World Market Update 2009" - March 2010) anticipate an
average annual growth rate of approximately 24% until 2013, with an annual
additional capacity installed in 2013 of approximately 65,400 MW.
Hansen's position
Hansen is one of the world leaders in multi-MW Wind turbine gearboxes. Despite
the challenging market conditions in financial year 2010, Hansen has
successfully maintained its strong position with its clients. Hansen's client
portfolio however has lost market share due to increasing Chinese growth. Hansen
has anticipated this shift in market share by intensifying its client
diversification program in the last twelve months. This has resulted in three
new Chinese clients entering into contractual arrangements with Hansen and a
further number of potential customers in the pipeline. The impact on revenue of
the new Chinese customers is limited in the financial year 2010 and financial
year 2011, but is anticipated to pick up as the Company moves from prototype
stage to full production.
Hansen signed in Q4 of FY 2010 a new contract with Sinovel, a leading wind
turbine supplier in the Chinese market, for the delivery of gearboxes for multi
MW turbines. The delivery of the first prototypes of gearboxes to Sinovel is
planned for end 2010 and serial delivery in 2011. Hansen will deliver these
gearboxes out of its new wind gearbox plant in Tianjin, China.
Refocusing of Hansen's strategy for wind turbine gearboxes
Throughout the organization, Hansen has updated the key elements of its
strategic plan that aims for sustainable, profitable growth with a diversified
customer base, state-of-the-art manufacturing facilities in Europe, India and
China supported by a global supply chain and a highly motivated and skilled
workforce. As part of this exercise, Hansen has reaffirmed its target of 14,300
MW manufacturing capacity in financial year 2013.
In addition to developing the manufacturing capacity and diversifying its
customer base, Hansen's wind turbine gearbox division has increased its offering
in the areas of spare parts, gearboxes and on-site support by establishing a
dedicated aftermarket service unit in Europe, and by identifying a partner to
provide similar support throughout the USA.
INDUSTRIAL GEARBOXES
The revenue of Hansen's industrial gearbox division decreased by 12% compared to
the previous financial year. This decrease was in line with the Company's
guidance given in October 2009 and with the general trend within the capital
goods industry. There have been very early signs of improvement in this market
with project activity for Hansen slightly increasing since January 2010.
Whilst adapting to this worldwide economic downturn, the industrial gearbox
activity continued to focus on consolidation and improving process efficiency.
PRODUCT
PRODUCT PORTFOLIO DIVERSIFICATION
In addition to an important focus on client diversification, Hansen has been
working intensively on further developing its wind gearbox product portfolio
with seven new products to be released to the wind turbine market in the short
and medium term. Additionally the Company is developing products for higher MW
turbines and new products specifically designed for the promising offshore wind
market.
ACTIVITIES IN THE FIELD OF RESEARCH AND DEVELOPMENT
In the financial year 2010, Hansen invested 14.9 million EUR in Research &
Development, representing 2.8% of revenue and an increase of +12% compared to
13.3 million EUR in the financial year 2009. These costs are charged directly to
the income statement. The Group's intention is to maintain the level of Research
& Development investments at between 2.5% and 3.0% of revenue in the coming
years.
Innovation within the Group is not only limited to Research & Development, but
is equally important in the manufacturing processes and methodologies of the
Company. These expenses are contained in fixed works overheads and variable
works overheads.
PRODUCTION
MANUFACTURING UNITS
In the last three years, Hansen has invested in three dedicated wind turbine
gearbox plants in Belgium, India and China resulting in an increase of its
global manufacturing capacity to 8,500 MW in the financial year 2010.
Belgium - Lommel
In April 2008, the Company completed the expansion of its fully integrated
Lommel plant for gearboxes for wind turbines in Belgium, which commenced in
October 2006 from 2,200 MW to 6,000 MW annual manufacturing capacity. Combined
with capacity in the Edegem plant in Belgium, this creates today a total annual
manufacturing capacity in Belgium of 7,100 MW.
India - Coimbatore
The fully integrated manufacturing plant for wind turbine gearboxes in
Coimbatore, India, has a product range of gearboxes up to 3 MW. The annual
manufacturing capacity has reached 1,200 MW in financial year 2010 and is
anticipated to remain at the same level in financial year 2011.
China - Tianjin
In the first phase, the factory for wind turbine gearboxes in Tianjin, China, is
performing as an assembly and testing facility with components delivered out of
Hansen's Belgian and Indian plants. The annual assembly and testing capacity of
the plant reached 1,600 MW in the financial year 2010.
In order to align global manufacturing capacity with the reduced market demand,
Hansen has not invested in gear manufacturing capacity in China in the financial
year 2010. For the financial year 2011, the Company continues to envisage
delivering assembled and tested gearboxes out of the Chinese plant with the
components manufactured in the Hansen's Belgian and Indian factories.
When market conditions justify, Hansen will be able to rapidly convert the
Tianjin facility from one of assembly and testing to full-scale manufacturing.
MANUFACTURING CAPACITY EXPANSION PLAN
Because of current wind market volatility, Hansen continues to optimise the
phasing of its manufacturing capacity expansion plan for the financial years
2011 to 2013.
We reaffirm our long-standing capacity target of 14,300 MW for the financial
year 2013.
The annual phasing of additional gear manufacturing capacity in India and China
will be constantly monitored in order to align capacity to market conditions and
can easily be accelerated to reflect a more rapid recovery in the market should
this occur. Based on the current market visibility, the Company does not plan
for the financial year 2011 additional investment for manufacturing capacity in
India and China.
PRICE
During the financial year 2010, the reported revenue decline of 13% was mainly
due to a reduction in scheduled deliveries of both industrial and wind turbine
gearboxes as Hansen worked with customers to manage their requirements in line
with the current operating and credit environment.
The average price per MW for wind turbine gearboxes increased in the financial
year 2010 to approximately 100,000 EUR from approximately 86,000 EUR in the
previous year, mainly driven by the change in sales mix to higher MW products
and increased levels of after market activities.
PROFIT
OUTPUT
The Company's sales in wind turbine gearboxes decreased from 5,956 MW in the
financial year 2009 to 4,484 MW in the financial year 2010.
OPERATING MARGINS
The following table provides a condensed breakdown of Hansen's cost of sales:
For the year|% of revenue| For the year|% of revenue
Ended| | Ended|
31 March 2010| | 31 March 2009|
Audited| | Audited|
=--------------------------------------+------------+--------------+------------
(EUR000)| | (EUR000)|
| | |
| | |
| | |
Sales of goods 532,413| | 609,175|
=--------------------------------------+------------+--------------+------------
Cost of sales | | |
| | |
Materials 300,447| 56.4%| 322,980| 53.0%
| | |
Direct labour 26,800| 5.0%| 34,776| 5.7%
| | |
Variable works 39,708| 7.5%| 49,634| 8.1%
overheads | | |
| | |
Changes in overheads in 5,847| 1.1%| (7,223)| -1.2%
inventory | | |
| | |
Fixed works overheads 72,818| 13.7%| 65,119| 10.7%
| | |
Total Cost of sales 445,620| 83.7%| 465,275| 76.4%
=--------------------------------------+------------+--------------+------------
| | |
| | |
Gross profit 86,793| 16.3%| 143,900| 23.6%
Hansen's raw materials costs increased as a percentage of revenue to 56.4%. This
increase is mainly due to 1) the lagging effect of lower cost materials coming
into the production process; 2) the important increase of sales of high MW wind
gearboxes, with a high material content; 3) logistic, handling, duties costs of
the components shipped from the plant in Belgium to the plants in India and
China.
Hansen's direct labour costs as a percentage of revenue decreased to 5.0% for
the financial year 2010, compared to 5.7% in the financial year 2009, mainly as
a result of the restructuring measures taken in the financial year 2010.
Variable works overheads, decreased to 7.5% in financial year 2010, compared to
8.1% in financial year 2009, as a result of the restructuring measures taken in
financial year 2010. As we continue to reduce our inventory, changes in
overheads in inventory increased to 1.1% of revenue in financial year 2010, from
-1.2% in financial year 2009.
Fixed works overheads increased to 13.7% on revenue in financial year 2010 from
10.7% on revenue in financial year 2009, because of additional depreciation
charges of the wind gearbox plants investments, in India and China. In addition,
with decreased revenue in financial year 2010, the fixed costs absorption rate
of overheads deteriorated.
FINANCE AND ADMINISTRATIVE COSTS
Finance and administrative costs increased from 6.1% on revenue in the financial
year 2009 to 7.1% in the financial year 2010, due to the combination of
increased general costs at the Indian and Chinese facilities and a reduced sales
volume.
COST CONTROL PLAN
In order to maintain flexibility, align its cost structure to the current
environment and support its EBITDA margins and cash flow, Hansen implemented
several cost containment measures, including:
* Supply chain optimization;
* Temporary unemployment for blue and white collar employees (under Belgian
legislation);
* White collar headcount reduction in Belgium by 6% in September 2009;
* Discontinuing of 75 temporary blue collar contracts in October 2009 in
Belgium;
* Savings programmes on general expenses; and
* Inventory reduction
The Company continues to explore and exploit opportunities to maintain an
appropriate cost base.
BALANCE SHEET
On 31 March 2010, the Company had a net financial debt position of 129 million
EUR, calculated as cash and cash-equivalents minus long-term and short-term
financial debts.
Inventories have decreased to 162 million EUR at 31 March 2010 from 209 million
EUR at 31 March 2009 as a result of the inventory reduction program that started
in the last quarter of financial year 2009.
Trade receivables have decreased to 122 million EUR at 31 March 2010 from 182
million EUR at 31 March 2009. This decrease is a result of the successful
handling of payments from customers. In addition, further payments were received
after 31 March 2010, decreasing further total accounts receivables.
During the financial year 2010 the Company successfully re-negotiated its
banking covenants. The Consolidated Net Senior Debt to Consolidated EBITDA ratio
was 3.42 times at 31 March 2010, well within the renegotiated covenant limit of
5.25 times for that period.
The current banking covenants ratios are:
Financial year Date Covenant Ratio
=--------------------------------------------------------------------------
Q4 financial year 2010 31 March 2010 5.25
=--------------------------------------------------------------------------
Q1 financial year 2011 30 June 2010 4.50
=--------------------------------------------------------------------------
from Q2 financial year 2011 from 30 September 2010 3.00
=--------------------------------------------------------------------------
from Q2 financial year 2012 and after from 30 September 2011 2.50
=--------------------------------------------------------------------------
SHARE CAPITAL - Issuance of Warrants in June 2009
On 10 June 2009 a warrant grant was made under the Hansen Warrants Plan 2007. Of
the warrants that were issued, a total of 1,670,500 warrants was effectively
accepted by the participants in accordance with the plan rules.
Subject to the conditions set out in the plan, the exercise of a warrant with
grant date of 10 June 2009 will give the right to subscribe to one share of the
Company at a subscription price of 1.47 GBP. The exercise period of these
warrants starts on 1 January 2013 and ends on 9 June 2014. The exercise of all
1,670,500 warrants would thus result in a dilution of the share of the existing
shares in the Company and in the profits of the Company of (rounded-off) 0.25 %.
The total number of outstanding warrants under the Hansen Warrants Plan 2007 at
31 March 2010 was 3,520,750 warrants. The exercise of all 3,520,750 warrants
would thus result in a dilution of the existing shares in the Company of
(rounded-off) 0.53%.
SHAREHOLDER STRUCTURE
On 19 November 2009, 236 million depository interests in Hansen were placed in
the market by AE Rotor Holding BV ("AERH"), a wholly owned indirect subsidiary
of Suzlon Energy Limited.
As a result of the Placing, AERH continues to hold 26.1% of the total depository
interests in Hansen, down from 61.3%, and Hansen's free float has increased from
38.7% to 73.9%.
HANSEN INCLUDED IN FTSE 250 INDEX
As from 22 March 2010, the shares of Hansen Transmissions International NV have
been included in the FTSE 250 Index with a weighting of 0.22 % as at 31 March
2010.
Hansen has been granted a "Renewable Energy Equipment" sub sector classification
used for companies that develop or manufacture renewable energy equipment
utilizing sources such as solar, wind, tidal, geothermal hydro and waves.
OUTLOOK
Since early 2009, the volatility and challenges affecting the near term wind
market have been reflected in Hansen's financial results. This trend has
continued and Hansen believes the operating environment will remain challenging.
While the order book has seen significant rescheduling, our ongoing dialogue
with customers continues to suggest some optimism for improving industry
investment from the second half of the 2010 calendar year.
Hansen expects the first quarter of the financial year 2011 to be in line with
the last quarter of financial year 2010 and revenue for the financial year 2011
to be back-end loaded. Against this backdrop, we expect to see revenue growth
for the full financial year 2011 of around 5% to 10%, compared to the financial
year 2010.
Our expansion plans are phased and we remain both operationally and financially
flexible in the continued execution of our growth strategy. From our strategy of
profitable growth, we will continue to diversify our customer base and to
carefully deploy capital to meet their capacity requirements.
Our confidence in the medium and longer-term fundamentals of the wind industry
remains unchanged and we continue to be well positioned with a growing portfolio
of major customers.
The financial information reported in this release is presented in EUR 000 and has
been prepared in accordance with the recognition and measurement criteria of
IFRS as adopted by the European Union. The full annual report containing the
Consolidated Financial Statements for the 12 month period ended 31 March 2010
including the Auditor's Report will be available and published on the website of
Hansen under the Investor Relations section on 26 May 2010. The financial
information in this report is in compliance with IFRS.
Consolidated Financial Statements for the year ended 31 March 2010 available on:
http://www.hansentransmissions.com/en/reports_publications.html
Statement from Ernst & Young Bedrijfsrevisoren BCVBA, Hansen's statutory
auditor, represented by Rudi Braes
The auditor has confirmed that its audit work, which is completed, has not
revealed any material matters requiring corrections to the consolidated income
statement, balance sheet and cash flow statement for the financial year which
ended on 31 March 2010 included in this press release.
Selected financial information extracted from the consolidated financial
statements prepared in accordance with International Financial Reporting
Standards
Audited Consolidated Income Statement For the year ended|For the year ended|
| |
31 March 2010| 31 March 2009|
-------------------+------------------+
(EUR000)| (EUR000)|
| |
IFRS | IFRS |
| |
| |
| |
Sale of goods 532,413| 609,175|
| |
| |
=-----------------------------------------------------------+------------------+
Revenue 532,413| 609,175|
| |
| |
| |
Cost of sales (445,620)| (465,275)|
| |
| |
=-----------------------------------------------------------+------------------+
Gross profit 86,793| 143,900|
| |
| |
| |
Other operating income 6,354| 8,377|
| |
Sales and distribution costs (40,747)| (37,994)|
| |
Administrative expenses (37,754)| (37,094)|
| |
Research and development (14,939)| (13,320)|
| |
| |
=-----------------------------------------------------------+------------------+
Operating profit / (loss) (293)| 63,869|
| |
| |
| |
Finance revenue 5,513| 10,368|
| |
Finance costs (16,962)| (12,102)|
| |
| |
=-----------------------------------------------------------+------------------+
Profit / (loss) before tax (11,742)| 62,135|
| |
| |
| |
Income tax expense 3,178| (17,095)|
| |
| |
=-----------------------------------------------------------+------------------+
Profit / (loss) for the period from | |
continuing operations(1) (8,564)| 45,040|
=-----------------------------------------------------------+------------------+
PROFIT / (LOSS) FOR THE PERIOD (8,564)| 45,040|
| |
| |
| |
(1) Since there is no discontinued | |
operation, profit for the period is equal | |
to profit for the period from continuing | |
operations. | |
| |
| |
| |
Earnings per share | |
| |
Basic, for profit for the period | |
attributable to ordinary equity holders | |
of the parent (0.013)| 0.067|
| |
Diluted, for profit for the period | |
attributable to ordinary equity holders | |
of the parent (0.013)| 0.067|
| |
| |
| |
Total shares - weighted average 670,104,208| 670,104,208|
| |
Diluted Shares - weighted average 670,104,208| 670,104,208|
Audited Consolidated Balance Sheet As at| As at|
| |
31 March| 31 March|
| |
2010| 2009|
------------+-----------+
(EUR000)| (EUR000)|
| |
IFRS | IFRS |
| |
ASSETS | |
| |
Non-current assets | |
| |
Property, plant and equipment (net) 586,898| 529,131|
| |
Goodwill and Intangible assets (net) 11,409| 11,269|
| |
Deferred tax assets 1,400| 1,562|
=--------------------------------------------------------------+-----------+
599,707| 541,962|
| |
Current assets | |
| |
Inventories (net) 161,996| 209,001|
| |
Trade receivables (net) 121,839| 182,016|
| |
Other receivables 17,186| 21,544|
| |
Cash and short-term deposits 149,124| 126,396|
| |
Deferred charges 16,230| 12,545|
=--------------------------------------------------------------+-----------+
466,375| 551,502|
=--------------------------------------------------------------+-----------+
TOTAL ASSETS 1,066,082| 1,093,464|
| |
| |
| |
EQUITY AND LIABILITIES | |
| |
Equity attributable to equity holders of the parent | |
| |
Issued capital 17,966| 17,966|
| |
Share premium 419,563| 419,563|
| |
Reserves 161,438| 146,294|
=--------------------------------------------------------------+-----------+
TOTAL EQUITY 598,967| 583,823|
| |
| |
| |
Non-current liabilities | |
| |
Interest-bearing loans and borrowings 234,171| 246,984|
| |
Derivative financial instruments 4,965| 4,730|
| |
Provisions 2,536| 1,171|
| |
Employee benefit liability 3,800| 2,570|
| |
Deferred income (grant) 4,475| 6,298|
| |
Deferred tax liability 34,732| 41,481|
=--------------------------------------------------------------+-----------+
284,679| 303,234|
| |
Current liabilities | |
| |
Trade and other payables 94,469| 160,762|
| |
Advanced payments 1,675| 2,115|
| |
Interest-bearing loans and borrowings 43,751| 3,518|
| |
Derivative financial instruments 918| -|
| |
Taxes payable 158| 1,066|
| |
Wages and salaries payable 17,606| 23,924|
| |
Provisions 5,015| 4,570|
| |
Other current liabilities 10,126| 3,454|
| |
Accrued charges 7,494| 6,272|
| |
Deferred income (grant) 1,224| 726|
=--------------------------------------------------------------+-----------+
182,436| 206,407|
=--------------------------------------------------------------+-----------+
TOTAL LIABILITIES 467,115| 509,641|
=--------------------------------------------------------------+-----------+
TOTAL EQUITY AND LIABILITIES 1,066,082| 1,093,464|
Audited Consolidated Cash Flow Statement For the year ended|For the year ended|
| |
31 March 2010| 31 March 2009|
-------------------+------------------+
(EUR000)| (EUR000)|
| |
IFRS | IFRS |
| |
Operating activities | |
| |
Profit before tax from continuing | |
operations (11.742)| 62,135|
| |
Adjustments to reconcile profit before | |
tax to net cash flows | |
| |
Non cash | |
| |
Depreciation and impairment of property, | |
plant and equipment 40,609| 28,309|
| |
Amortization and impairment of intangible | |
assets 1,277| 1,529|
| |
(Gain)/Loss on disposal of property, | |
plant and equipment (181)| (50)|
| |
Finance revenue (1,474)| (10,368)|
| |
Finance costs 16,962| 12,102|
| |
Movements in provisions, pensions and | |
government grants 485| (1,261)|
| |
Employee benefit expense 685| 529|
| |
Receipt of government grants, not | |
included in movement of government grants (5,170)| (5,603)|
| |
Working capital adjustments | |
| |
(Increase)/decrease in trade receivables 60,177| (93,233)|
| |
(Increase)/decrease in other receivables 4,358| 598|
| |
(Increase)/decrease in deferred charges (3,685)| (227)|
| |
(Increase)/decrease in inventories 47,005| (72,825)|
| |
Increase/(decrease) in trade and other | |
payables (66,293)| 38,317|
| |
Increase/(decrease) in advanced payments, | |
taxes, wages and salaries payable, other | |
current liabilities and accrued charges 1,136| 5,645|
| |
Income tax paid (2,136)| (1,929)|
=-----------------------------------------------------------+------------------+
Net cash flows from operating activities 82,013| (36,332)|
| |
Investing activities | |
| |
Proceeds from sale of property, plant and | |
equipment 313| 135|
| |
Purchase of property, plant and equipment (79,321)| (221,588)|
| |
Purchase of intangible assets (1,294)| (3,920)|
| |
Interest received 1,514| 9,597|
| |
Receipt of government grants 6,035| 6,271|
=-----------------------------------------------------------+------------------+
Net cash flows used in investing | |
activities (72,753)| (209,505)|
| |
Financing activities | |
| |
Interest paid (14,483)| (10,677)|
| |
Repayment of borrowings (43,516)| -|
| |
Proceeds from borrowings 71,359| 57,350|
=-----------------------------------------------------------+------------------+
Net cash flows from financing activities 13,360| 46,673|
| |
Net increase in cash and cash equivalents 22,620| (199,164)|
| |
Net foreign exchange difference 108| 48|
| |
Cash and cash equivalents at 1 April 126,396| 325,512|
=-----------------------------------------------------------+------------------+
Cash and cash equivalents at 31 March 149,124| 126,396|
Consolidated Income Statement For the three months For the three months
for the 3 month period ended 31 March ended 31 March 2010 ended 31 March 2009
Unaudited Unaudited
------------------------------------------
(EUR000) (EUR000)
IFRS IFRS
Revenue 109,853 158,573
Cost of sales -91,961 -125,178
------------------------------------------
Gross profit 17,892 33,395
Other income 5,574 8,091
Selling and distribution costs -9,750 -7,302
Administrative expenses -10,135 -11,898
Research and development -3,437 -3,714
------------------------------------------
Operating profit 144 18,572
Finance revenue 4,173 1,463
Finance costs -5,999 1,062
------------------------------------------
Profit before tax -1,682 21,097
Income tax expense 2,994 -3,885
------------------------------------------
Profit for the period from continuing 1,312 17,212
operations
PROFIT FOR THE PERIOD 1,312 17,212
FINANCIAL CALENDAR - HANSEN TRANSMISSIONS INTERNATIONAL NV
FINANCIAL YEAR 2010
12 months period ending 31 March 2010
+-------------------------------------+--------------------------------------+
|17 May 2010 - 7:15 am UK time |Press Release Annual Results FY 2010 |
+-------------------------------------+--------------------------------------+
|17 May 2010 - 8:30 am UK time |Analyst Meeting Annual Results FY 2010|
+-------------------------------------+--------------------------------------+
|26 May 2010 |Annual Financial Report FY 2010 |
+-------------------------------------+--------------------------------------+
|24 June 2010 |AGM FY 2010 |
+-------------------------------------+--------------------------------------+
FINANCIAL YEAR 2011
12 months period ending 31 March 2011
+---------------------------------------+------------------------------------+
| 26 July 2010 (*) |Interim statement Q1 2011 Results |
+---------------------------------------+------------------------------------+
| 28 October 2010 (*) |Press Release 1H 2011 Results |
+---------------------------------------+------------------------------------+
| 27 January 2011 (*) |Interim statement Q3 2011 Results |
+---------------------------------------+------------------------------------+
| 19 May 2011 (*) |Press Release Annual results FY 2011|
+---------------------------------------+------------------------------------+
| 31 May 2011 (*) |Annual Financial Report FY 2011 |
+---------------------------------------+------------------------------------+
| 30 June 2011 |AGM FY 2011 |
+---------------------------------------+------------------------------------+
(*) dates subject to final confirmation
For more information
+------------------------------------------------------------------------------+
|Hansen Transmissions International NV |
| |
|Investor Relations |
+--------------------------------------------------------------+---------------+
|Hans Ooms |+32 3 450 58 62|
|De Villermonstraat 9 | |
|2550 Kontich - Belgium | |
|hans.ooms.ir@hansentransmissions.com | |
|<mailto:hans.ooms.ir@hansentransmissions.com> | |
|http://www.hansentransmissions.com/en/investorrelations.html | |
+--------------------------------------------------------------+---------------+
+---------------------------------------------------------------------------+
|Maitland |
+----------------------------------------------------------+----------------+
|Sarah Hamilton |+44 20 7395 0464|
|shamilton@maitland.co.uk <mailto:shamilton@maitland.co.uk>| |
+----------------------------------------------------------+----------------+
About Hansen Transmissions
Hansen Transmissions International NV is an established global wind turbine
gearbox and industrial gearbox designer, manufacturer and supplier, with a
leading position (by MW supplied) in the wind turbine gearbox market. The
Company supplies gearboxes to four of the five largest manufacturers of
gear-driven wind turbines globally and provides durable gear drives for a wide
range of industrial applications throughout the world. Hansen plans to increase
its wind turbine gearbox manufacturing capabilities, from 8,500 MW per annum in
the financial year 2010 to 14,300 MW, by financial year 2013. In addition to its
principal manufacturing facilities in Belgium - comprising a wind turbine and
industrial gearbox plant in Edegem (Antwerp) and a fully integrated
state-of-the-art dedicated wind turbine gearbox manufacturing facility in Lommel
(Limburg) - Hansen has a +95.000m ² production plant in Coimbatore, India and has
started the construction, in September 2008, of a production plant for wind
turbine gearboxes for the Chinese market on a 250,000 m ² site in the Beichen
Hi-tech Industrial park in Tianjin. Hansen has strong research and development
operations to maintain its technological leadership and employs approximately
2,200 people worldwide.
http://www.hansentransmissions.com/en/
http://www.hansentransmissions.com/en/investorrelations.html
Forward Looking Statements
This press release may include statements that are "forward-looking statements".
In some cases, these forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes", "estimates",
"forecasts", "plans", "prepares", "projects", "anticipates", "expects",
"intends", "may", "will", "should" or other similar words. Forward-looking
statements may include, without limitation, those regarding Hansen's financial
position, business strategy, plans and objectives of management for future
operations (including development plans and objectives relating to Hansen's
products) and the wind turbine and gearbox markets. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Hansen, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such forward looking statements are based on numerous assumptions
regarding Hansen's present and future business strategies and the environment in
which Hansen will operate in the future. These forward looking statements speak
only as of the date of this press release. Hansen expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to any
forward-looking statement contained herein to reflect any change in Hansen's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
Principal Risks & Uncertainties
Hansen's activities as a global wind turbine gearbox and industrial gearbox
designer, manufacturer and supplier imply that it faces a number of risks and
uncertainties. The principal risks and uncertainties, as outlined below, may
affect the future performance of the Company.
Within the framework of Hansen's Enterprise Risk Management, a regular and
systematic identification and management of the principal risks is ensured, as
risk management is an integral part of how Hansen plans and executes its
business strategies.
Strategic risks
* Hansen is facing the consequences of uncertain macro-economic conditions. The
business environment could be influenced by a reduced business confidence and a
decline in capital expenditure leading to lower demand for our products and more
challenging market conditions. Wind farm operators, as well as clients for our
industrial gearboxes, are facing difficulties in attracting equity and/or debt
capital or other means of financing capital investments.
Although Hansen has implemented strategies aimed at maintaining our position as
a leading and a preferred supplier of gearboxes for wind turbines and industrial
applications, and has been successful in expanding its customer base, there is
no assurance that a volatility in the demand for Hansen's products or an
uncertain macro-economic environment will not adversely impact our revenues,
results and ability to access capital.
* The markets in which Hansen operates are highly competitive in terms of
pricing, product quality and reliability, product development lead time, and
customer service. A continued decline in market demand could increase price
competition even further.
The expansion of manufacturing facilities in India and China is part of our
strategy to supply our products worldwide under competitive conditions.
Additionally, Hansen has invested in the development of market intelligence and
local sales forces in the emerging markets. Hansen continues to aim for highly
reliable and high-quality products and, for the Financial year 2010, has
increased its budget for research and development accordingly.
* Hansen's business environment requires it to keep pace with technological
challenges and develop new products to meet customers' requirements in terms of
quality and reliability. As the markets in which we operate are known for their
highly innovative technologies, we are committed to continuously designing new
and updating existing products and investing in innovative gear technology and
bearing-application technology.
Despite Hansen's continued and significant commitment to research and
development, our products and technologies could fail to meet the required
levels of quality and reliability. Moreover, competitors may be able to
introduce new technology or products faster than Hansen, which could have an
adverse impact on future revenues and Hansen's market share.
* Hansen's success in the field of gearboxes for wind turbines could be
jeopardized by a substantially increased application of "gearless" wind
turbine technologies. Hansen continues to invest in the development of
innovative gearbox technology, aimed at maintaining the advantages of
gearbox-driven wind turbines in terms of weight, transport, installation costs
and overall turbine reliability.
Operational risks
* The expansion of its manufacturing capabilities with the construction of two
new facilities in India and China is an essential part of Hansen's strategy.
Hansen has invested substantially, in terms of training of local staff, local
supplier quality assurance and through ISO 9001 certification, to assure that
the Indian and Chinese plants produce gearboxes at the same quality level as the
Belgian plants.
Nevertheless, customers could still perceive a quality difference and prefer to
restrict their orders to gearboxes manufactured in Europe. Additionally,
customer's order intake of Hansen products could differ geographically from our
worldwide production capacity, which could result in an underutilization of the
plants in India and China.
* Hansen relies upon a number of third parties for the supply of raw materials
and components, for which there is significant international demand. Hansen's
performance depends in part on a reliable and effective supply chain management
for raw materials and components to all of our plants. Using third parties to
design and manufacture and test components can reduce our control over quality
assurance, product delivery schedules and costs. Although Hansen works closely
with its suppliers, the possibility of supply problems in terms of quality or
timely delivery can not be excluded.
* Hansen depends, for its wind gearbox business, on a limited number of
customers in the wind turbine market. A customer in the wind turbine market
might cease to buy or develop new gearboxes with Hansen for a number of reasons,
such as a customer's decision to expand into gearbox production, the perception
of Hansen in part as a direct competitor or the fact that the competition would
be able to produce at a more competitive price or introduce new gearbox
technology within a shorter time frame. The loss of any of these customers could
result in lower than expected revenue.
In response to this risk, Hansen develops strategies and allocates resources to
the development of innovative gear technology and bearing-application technology
aimed at the production of reliable and quality gearboxes under competitive
conditions. Additionally Hansen continues to focus on the expansion of its
client and product portfolio.
* Hansen can be exposed to quality problems in our value chain processes, which
comprise all steps, from research and development to production, marketing,
sales and servicing of our products. Design errors, production errors or quality
issues related to raw materials or components supplied, can lead to quality or
reliability issues, and resulting reputational damage, product liability and/or
warranty claims.
* Hansen's ability to manufacture and sell its products at a competitive and
profitable price is affected by the price fluctuations of raw materials and
intermediate components which it uses in the production of gearboxes. We may
neither be able to pass on increased costs immediately and fully to our
customers, nor obtain immediate and full price reductions from our suppliers,
and yet customers expect to benefit from falling commodity prices.
* Hansen's business remains dependent upon the contributions of Directors,
management, engineers and other employees and on its ability to attract and
retain key personnel at every site with the necessary skills and experience.
Hansen could, if the macro-economic conditions remain uncertain or if other
industries show better job opportunities, be unable to attract and retain the
right people and such failure could have an impact on its ability to design and
produce wind turbine and industrial gearboxes.
Financial risks
* Hansen could be adversely affected by foreign exchange rate fluctuations
resulting from the translation of revenues from foreign currencies into euro.
Additionally, a continued strong euro could have an impact on our competitive
position as some of our competitors could benefit from having a substantial
portion of their costs being created in weaker currencies.
* Hansen's financing costs may be affected by interest rate volatility.
Increases in interest rates are likely to increase the interest cost associated
with the Group's debt ? the main financing of the Group concerns floating rate
debt ? and may increase the cost of future borrowings, which could affect the
Group's earnings and financial position.
* Hansen's future financing costs may be significantly influenced by our
operational results, cash flow and working capital evolutions. A negative
development of our operational results, cash flow or net debt may lead to an
increase of our financing costs.
* If customers would not be successful in generating sufficient revenue or
securing access to capital markets, they could be unable to pay, or could delay
payment of, the amounts owed to Hansen, which may adversely affect Hansen's
financial position and results.
For more information regarding interest rate risk, foreign exchange risk, credit
risk, liquidity risk, please see "Notes to the Consolidated Financial
Statements".
Compliance risks
* Hansen is subject to various environmental and health and safety laws and
regulations in the jurisdictions where it has operations. Compliance to these
laws and regulations, existing or future, could result in substantial ongoing
compliance costs or operating restrictions. We could face liabilities related to
environmental damage or health and safety incidents that are beyond the limits
or coverage of our insurance policies.
* Hansen's success depends in part on its ability to protect current and future
technologies, processes and products, and to defend its intellectual property
rights. Hansen's failure to protect these rights could result in competitors
manufacturing similar products, which could adversely affect Hansen's ability to
exclusively market its own products in the relevant geographical markets.
* Hansen's worldwide operations expose it to risks associated with different
legal and taxation regimes, foreign exchange controls and economic conditions.
Changes to these regulations could lead to higher tax or operational expenses.
#
[HUG#1416187]
Press Release (PDF): http://hugin.info/139494/R/1416187/366867.pdf
Consolidated Financial Statements FY 2010: http://hugin.info/139494/R/1416187/366869.pdf
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