TIDMHSN
Kontich, Belgium - London, UK - 16 May, 2011 - Hansen Transmissions
International NV ("Hansen", "the Group" or "the Company") (LSE ticker 'HSN')
today announces its results for the 3 months ended 31 March 2011 and for the 12
months ended 31 March 2011.
HIGHLIGHTS FINANCIAL YEAR 2011
* Revenue of 379 million EUR for the Continuing Group (wind gearboxes) is down
-15.7% vs. previous financial year, in line with guidance for the financial
year 2011 of approximately -15% revenue decrease
* EBITDA[1] margin for the Continuing Group was 10.0% of revenue compared to
9.3% the previous year reflecting the benefit of ongoing cost measures
* Net loss of -15.9 million EUR for the Group, compared to a net loss of -8.6
million EUR previous year
* Improved balance sheet with net financial debt[2] at 20.0 million EUR at 31
March 2011, down from 128.8 million EUR as at March 2010, driven by
divestment, working capital management and ongoing cash generation
* Divestment of the Industrial Gearbox business in March 2011 has resulted in
a significantly improved capital structure, better capacity utilization and
a strategic focus on wind energy
* New products pipeline growing with delivery of several multi-megawatt
prototypes
* Continuing progress with diversifying product portfolio and customer base
* Outlook financial year 2012:
* Volatile wind turbine market results in limited short term visibility
for Hansen
* Hansen's current expectation for revenue growth for the financial year
2012 ranges between +5% and +15% compared to the financial year 2011
[1] EBITDA = earnings before interest, tax, depreciation & amortisation
[2]Net Financial Debt = Long and short term loans and borrowings minus cash and
short-term deposits
Alex De Ryck, CEO of Hansen commented:
"Despite the ongoing challenging environment, Hansen made important progress on
its strategic agenda in the 2011 financial year, and managed its business with
flexibility in response to changing customer needs and a changed market.
Our product portfolio grew throughout the year, with the delivery of several
prototypes for new wind turbine gearboxes which will begin production for serial
delivery at various stages over the next 12 months.
As a result of the divestment of the Industrial Gearbox business in March 2011,
we are now able to focus all our resources on further developing the wind
gearbox business, which has a much larger potential global market, and to reduce
some of the overhead costs associated with excess capacity which has impacted
profitability in recent years. We will seek to maximise the use of our existing
capacity.
While the outlook for revenue growth remains uncertain, Hansen's balance sheet
is strong, margins are improved and cash generation is healthy. This, coupled
with our diverse customer base and enhanced product pipeline, leaves Hansen in a
strong industry position for both the short and the long term."
OUTLOOK
The wind sector globally remains impacted by the challenging macroeconomic
climate. Government subsidies, third-party financing and regulatory support have
all been affected and this has resulted in increased uncertainty for the wind
industry. The European and US wind markets continue to work through the impact
of these issues and the situation has been compounded by lower electricity
demand in these markets, not currently supporting the wind industry.
On the other hand, the Chinese and Indian markets continue to outperform with
successful local wind turbine manufacturers. Governments worldwide are reviewing
their long term energy policies, driven by increasing gas and coal prices,
increasing environmental awareness and the desire for security of energy supply.
With the growth that we can see in these markets there are reasons to be
positive, however, Hansen's current visibility over the full financial year
2012 remains limited.
Hansen's current expectation for revenue growth for the financial year 2012
ranges between +5% and +15% compared to the financial year 2011. This guidance
will be updated quarterly.
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 products and customers.
ANALYST AND INVESTOR CONFERENCE CALL
Hansen will host an analyst presentation on the financial year 2011 results:
With: Alex De Ryck, CEO
Jan Willem Ruinemans, CFO
On: Monday 16 May 2011 - 10.00 am UK
time
At: Bank of America Merrill Lynch
Auditorium
Merrill Lynch Financial Centre
2 King Edward Street
London EC1A 1HQ
Dial-in details:
Dial-in numbers: UK Direct: 0208 996 3920
International Direct: +44 208 996 3920
Pass code: 899 655
A replay of this analyst presentation will be available on the Investor
Relations section of Hansen's website as from Monday evening 16 May 2011 on:
http://ir.hansentransmissions.com/ir/results/results_announcements.
ANNUAL REPORT
The full Annual Financial Report for the financial year 2011 will be available
as from 31 May 2011.
ANNUAL SHAREHOLDERS' MEETING
Hansen will hold its annual shareholders' meeting for the financial year 2011 on
30 June 2011 in Kontich, 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 2011
including the Auditor's Report will be available and published on the website of
Hansen under the Investor Relations section on 31 May 2011. The financial
information in this report is in compliance with IFRS.
HANSEN CONSOLIDATED RESULTS (*) KEY FIGURES
| For the|% change| For the For the 3 | %|For the 3
| year ended| | year ended months| change| months
| 31 March| | 31 March period| | period
| 2011| | 2010 ended| | ended
| | | 31 March| | 31 March
| | | 2011| | 2010
+-----------+--------+------------ -----------+-------+----------
| Unaudited| | Unaudited Unaudited| | Unaudited
=--------------+-----------+--------+------------ -----------+-------+----------
CONTINUING | (EUR000)| | (EUR000) (EUR000)| | (EUR000)
GROUP | | | | |
=--------------+-----------+--------+------------ -----------+-------+----------
Revenue | 378,668| -15.7%| 449,372 94,206| +8.5%| 86,781
=--------------+-----------+--------+------------ -----------+-------+----------
EBITDA [1] | 37,855| -9.3%| 41,756 10,340| +2.5%| 10,082
=--------------+-----------+--------+------------ -----------+-------+----------
EBITDA Margin | 10.0%| | 9.3% 11.0%| | 11.6%
=--------------+-----------+--------+------------ -----------+-------+----------
Net | | | | |
Profit/(loss) | | | | |
from continuing| | | | |
operations | (18,570)| -| (5,648) (1,769)| -| 1,692
=--------------+-----------+--------+------------ -----------+-------+----------
=--------------+-----------+--------+------------ -----------+-------+----------
Net | | | | |
Profit/(loss) | | | | |
from | | | | |
discontinued | | | | |
operations | 2,675| -| (2,916) (471)| -| (380)
=--------------+-----------+--------+------------ -----------+-------+----------
Net | | | | |
Profit/(loss) | | | | |
Group | (15,895)| -| (8,564) (2,240)| -| 1,312
=--------------+-----------+--------+------------ -----------+-------+----------
=--------------+-----------+--------+------------ -----------+-------+----------
EPS | | | | |
from continuing| | | | |
operations (in | | | | |
EUR) | (0.028)| | (0.008) (0.003)| | 0.002
=--------------+-----------+--------+------------ -----------+-------+----------
EPS | | | | |
from | | | | |
discontinued | | | | |
operations (in | | | | |
EUR) | 0.004| | (0.004) (0.001)| | (0.001)
=--------------+-----------+--------+------------ -----------+-------+----------
=--------------+-----------+--------+------------
Net financial | | |
debt[2] Group | 19,953| -85%| 128,798
=--------------+-----------+--------+------------
Purchase | | |
property, plant| | |
& equipment | | |
Group | 23,425| | 79,321
=--------------+-----------+--------+------------
Headcount Group| 1,390| | 2,193
=--------------+-----------+--------+------------
[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
(*) Note: divestment of Industrial Gearbox business in March 2011
The Company applied IFRS 5 for discontinued operations in the annual accounts
related to the completion of the disposal of the industrial gearbox division in
March 2011. IFRS 5 discontinued operations was not applicable for the annual
accounts of 31 March 2010. However in the annual accounts of 31 March 2011, the
presentation of the comparative Consolidated Income Statement for the year ended
March 31, 2010 has been adjusted in accordance with IFRS 5 discontinued
operations. The Consolidated Balance Sheet, the Consolidated Statement of
Comprehensive Income and the Consolidated Cash Flow Statement have not been
adjusted in accordance with IFRS 5 discontinued operations.
EXPLANATORY NOTE
REVENUE
The Group's results for financial year 2011 were significantly impacted by the
volatility and challenges in the wind market. Revenue for the full financial
year decreased 15.7% from the level achieved for the previous financial year, in
line with the Company's guidance for the financial year 2011 of approximately
15% decrease in revenue.
CASH FLOW, INVESTMENTS AND BALANCE SHEET
Cash flow from operating activities was 100.5 million EUR in the financial year
2011 for the Group. Net Working Capital decreased by 64.1 million EUR for the
Group in the financial year, driven by working capital efficiencies in the
Continuing Group and 28.0 million EUR relating to the conversion of working
capital to cash as part of the divestment of the industrial business.
The Hansen Group invested 23.4 million EUR in property, plant and equipment
during the financial year which consisted entirely of maintenance capex, much
lower than the 79.3 million EUR investments in property, plant and equipment the
previous year as Hansen continues to maximise existing capacity utilisation.
Following the divestment of the Industrial Gearbox business in March 2011, there
was a decrease of some 1,100 MW of available wind gearbox manufacturing
capacity. Net financial debt position stood at 20.0 million EUR as at 31 March
2011, compared with 128.8 million EUR a year earlier.
MARKET POSITION
Market update
In the calendar year 2010, new installations of wind energy turbines worldwide
reached approximately 39,000 MW, representing an increase of some 3% over the
installations of 2009. Current forecasts by BTM (Source: BTM Consult Aps
"International Wind Energy Development - World Market Update 2010" - March
2011) anticipate an average annual growth rate of approximately 16% until 2015,
with an annual additional capacity installed in 2015 of approximately 81,000 MW.
Hansen's position
Hansen is one of the world leaders in multi-MW Wind turbine gearboxes, has a
strong position in Europe, the US and India and has continued to perform well in
these markets.
Despite the challenging market conditions in financial year 2011, Hansen has
successfully maintained its strong position with its clients. Hansen's client
portfolio however has lost market share with Chinese wind turbine manufacturers
taking an increasing share of the market. Hansen has intensified its client and
product diversification program over the last two years to align itself with
this market evolution and will continue to do so.
In March 2010, a contract was signed with Sinovel, the leading wind turbine
supplier in the Chinese market, for the delivery of gearboxes for multi MW
turbines. The contract with Sinovel is currently the principal contract for
Hansen in China. The delivery of the first prototypes gearboxes for Sinovel was
achieved in the financial year 2011 and serial delivery has already begun in Q1
of financial year 2012. Hansen delivers these gearboxes out of its wind gearbox
plant in Tianjin, China.
We have been working with two unnamed customers in China and the prototypes and
initial deliveries have now been made. However, the Chinese market is seeing a
consolidation trend among the larger wind turbine manufacturers, and we are
therefore not expecting that these customers will provide the Company with
significant volumes in the near future. Hansen continues to look to grow its
Chinese customer base and its share of business with the larger Chinese
manufacturers. We remain optimistic of further progress.
PRODUCT PORTFOLIO DIVERSIFICATION
In addition to our focus on continued client diversification, Hansen has been
working intensively on further developing its wind gearbox product portfolio
with new products to be released to the wind turbine market in the short and
medium term.
The product portfolio grew throughout the year, with the delivery of several
prototypes for new wind turbine gearboxes which will begin production for serial
delivery at various stages over the next 12 months.
The new models for which prototypes have been delivered in financial year 2011
include multi-megawatt products such as a 6.15 MW offshore gearbox for REpower
and a 3.0 MW gearbox for Sinovel in China.
Several other new products are in the prototype development phase and scheduled
for serial delivery to our customers in the next 24 months.
ACTIVITIES IN THE FIELD OF RESEARCH AND DEVELOPMENT
In the financial year 2011, Hansen invested 12.9 million EUR in Research &
Development, representing 3.4% of revenue and an increase of +8% compared to
11.9 million EUR in the financial year 2010. The Group's intention is to keep
the level of Research & Development at 3% to 4% of revenue in the coming years
to support the continuing efforts to further diversify the product portfolio.
PRODUCTION
Hansen has three dedicated wind turbine gearbox plants in Belgium, India and
China resulting in an overall global manufacturing capacity of 7,600 MW in the
financial year 2011. This available manufacturing capacity should allow Hansen
to satisfy important volume increases, without the need for significant new
capital expenditure.
SALES AND MARGINS
The Company's sales in wind turbine gearboxes decreased from 4,484 MW in the
financial year 2010 to 4,111 MW in the financial year 2011.
The reported revenue decline of 15.7% was due to a reduction in deliveries of
wind turbine gearboxes to one of its customers, partially offset by an increase
of deliveries to its other customers across all geographies.
The average price per MW for wind turbine gearboxes decreased in the financial
year 2011 to approximately 92,000 EUR from approximately 100,000 EUR in the
previous year, mainly driven by the change in sales mix to lower MW products.
OPERATING MARGINS
The following table provides a condensed overview of Hansen's cost of sales:
For the year | % of revenue | For the year | % of revenue
Ended | | Ended |
31 March 2011 | | 31 March 2010 |
Unaudited | | Unaudited |
=--------------------------------+--------------+----------------+--------------
(EUR000) | | (EUR000) |
| | |
Sales of goods 378,668 | | 449,372 |
=--------------------------------+--------------+----------------+--------------
Cost of sales 317,850 | 83.9% | 381,970 | 85.0%
| | |
Gross profit 60,818 | 16.1% | 67,402 | 15.0%
The improvement in Gross Profit Margin, to 16.1% from 15.0% the previous year,
was mainly a result from the positive effect of operational cost savings
initiatives, and supply chain optimizations, including increased localization of
the supply chain in India and China. This improvement in gross margin was
achieved notwithstanding an increase in depreciations and amortization of 6.0
million EUR, or 1.6% Gross Profit Margin.
SALES, DISTRIBUTION AND ADMINISTRATIVE COSTS
Sales, distribution and administrative costs increased from 56.9 million EUR to
57.4 million EUR.
The Company continues to explore and exploit opportunities to maintain an
appropriate cost base, in line with activity levels, as well as pursue
efficiency programs throughout the Group.
CHANGES IN THE MANAGEMENT COMMITTEE
NEW CHIEF FINANCIAL OFFICER
Jan Willem Ruinemans started as CFO of the Company in September 2010.
He became a member of the Board of Directors in February 2011. Prior to joining
Hansen Transmissions International Jan Willem was Chief Financial Officer and an
Executive Board member of BE Semiconductor Industries NV, a leading Dutch
manufacturer of assembly equipment for the global semiconductor and electronics
industry. Prior to that, Jan Willem worked at Royal Philips Electronics NV for
13 years in a number of senior financial management positions. Jan Willem is
responsible for Information Technology, Human Resources and Finance.
NEW CHIEF OPERATING OFFICER
Mohan Nagamangala Srinivasan became COO of the Company in September 2010.
Mohan was one of the first executives hired by Hansen in India in November
2007. He joined as executive Director of Hansen's Wind Gearbox Plant in
Coimbatore, India. As an executive Director and member of the Board of Hansen
Drives Ltd, the subsidiary of Hansen Transmissions in India, Mohan has been key
to the successful development of the Coimbatore manufacturing facility.
Previously, he had more than 20 years experience in the automotive component
industry, holding senior management positions in companies including Visteon, as
Managing Director in Thailand and MICO, a Bosch company. His work has focused on
improving operational efficiency and the successful completion of major capital
investment projects in both auto components and renewable energy, both in India
and internationally.
NEW CHIEF SALES & MARKETING OFFICER
Stefan Lammens became Chief Sales & Marketing Officer of the Company in February
2011.
Stefan joined Hansen in 1997 and has been a member of the Executive Committee
since 2007. During this period, he was active in various technical, commercial
and managerial roles within Hansen. Stefan holds a Ph.D. in applied science.
SPECIAL COUNSEL TO THE EXECUTIVE COMMITTEE
With effect from 13 May 2011, Gerotech BVBA (represented by its permanent
representative Georges Roobaert) retired from duties as member of the Executive
Committee of the Company. Up to September 2012, Gerotech BVBA will continue to
be available to the Group as a consultant on selected projects.
EMPLOYEES
In the financial year 2011, the Company reduced its headcount from 2,193 at the
end of March 2010 to 1,390 at the end of March 2011. This decrease includes 737
employees that were part of the divestiture of Hansen Industrial Transmissions
NV.
In Belgium, the number of employees decreased from 1,544 at 31 March 2010 to
923 at 31 March 2011.
OUTLOOK
The wind sector globally remains impacted by the challenging macroeconomic
climate. Government subsidies, third-party financing and regulatory support have
all been affected and this has resulted in increased uncertainty for the wind
industry. The European and US wind markets continue to work through the impact
of these issues and the situation has been compounded by lower electricity
demand in these markets, not currently supporting the wind industry.
On the other hand, the Chinese and Indian markets continue to outperform with
successful local wind turbine manufacturers. Governments worldwide are reviewing
their long term energy policies, driven by increasing gas and coal prices,
increasing environmental awareness and the desire for security of energy supply.
With the growth that we can see in these markets there are reasons to be
positive, however, Hansen's current visibility over the full financial year
2012 remains limited.
Hansen's current expectation for revenue growth for the financial year 2012
ranges between +5% and +15% compared to the financial year 2011. This guidance
will be updated quarterly.
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 products and 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 2011
including the Auditor's Report will be available and published on the website of
Hansen under the Investor Relations section on 31 May 2011. The financial
information in this report is in compliance with IFRS.
Statement from Ernst & Young Bedrijfsrevisoren BCVBA, Hansen's statutory
auditor, represented by Rudi Braes
"The auditor has confirmed that the audit procedures on the consolidated
financial statements are substantially complete and that this did not reveal any
material adjustments which should be reflected in the financial information,
included in the press release."
Selected financial information extracted from the consolidated financial
statements prepared in accordance with International Financial Reporting
Standards
Consolidated Income Statement For the year ended|For the year ended|
| |
31 March 2011 | 31 March 2010 |
-------------------+------------------+
(EUR000)| (EUR000)|
| |
IFRS| IFRS|
| |
Unaudited| Unaudited|
| |
Sale of goods 378,668| 449,372|
| |
| |
=-----------------------------------------------------------+------------------+
Revenue 378,668| 449,372|
| |
| |
| |
Cost of sales (317,850)| (381,970)|
| |
| |
=-----------------------------------------------------------+------------------+
Gross profit 60,818| 67,402|
| |
| |
| |
Other operating income 2,606| 5,688|
| |
Sales and distribution costs (22,178)| (23,742)|
| |
Administrative expenses (35,216)| (33,110)|
| |
Research and development (12,902)| (11,930)|
| |
| |
=-----------------------------------------------------------+------------------+
Operating profit / (loss) (6,872)| 4,308|
| |
| |
| |
Finance revenue 4,256| 5,335|
| |
Finance costs (18,077)| (16,679)|
| |
| |
=-----------------------------------------------------------+------------------+
Profit / (loss) before tax (20,693)| (7,036)|
| |
| |
| |
Income tax expense 2,123| 1,388|
| |
| |
=-----------------------------------------------------------+------------------+
Profit / (loss) for the period from | |
continuing operations (18,570)| (5,648)|
=-----------------------------------------------------------+------------------+
| |
| |
Profit/(loss) for the period from | |
discontinued operations 2,675| (2,916)|
| |
| |
=-----------------------------------------------------------+------------------+
Net profit / (loss) (15,895)| (8,564)|
| |
| |
| |
Earnings per share from continuing and | |
discontinued operations attributable to | |
the equity holders of the parent during | |
the year (in EUR per share) | |
| |
Basic earnings per share | |
| |
From continuing operations (0.028)| (0.008)|
| |
From discontinued operations 0.004| (0.004)|
| |
| |
| |
Diluted earnings per share | |
| |
From continuing operations (0.028)| (0.008)|
| |
From discontinued operations 0.004| (0.004)|
| |
| |
| |
Total shares (in units) - weighted | |
average 670,104,208| 670,104,208|
| |
Diluted Shares (in units) - weighted | |
average 670,104,208| 670,104,208|
Consolidated Balance Sheet As at | As at |
| |
31 March | 31 March |
| |
2011 | 2010 |
------------+-------------+
(EUR000) | (EUR000) |
| |
Unaudited | Unaudited |
| |
ASSETS | |
| |
Non-current assets | |
| |
Property, plant and equipment (net) 511,159 | 586,898 |
| |
Goodwill and Intangible assets (net) 4,207 | 11,409 |
| |
Other receivables 553 | - |
| |
Deferred tax assets - | 1,400 |
=----------------------------------------------------------------+-------------+
515,919 | 599,707 |
| |
Current assets | |
| |
Inventories (net) 112,363 | 161,996 |
| |
Trade receivables 85,561 | 121,839 |
| |
Other receivables 19,832 | 17,186 |
| |
Cash and short-term deposits 140,365 | 149,124 |
| |
Deferred charges 14,475 | 16,230 |
=----------------------------------------------------------------+-------------+
372,596 | 466,375 |
=----------------------------------------------------------------+-------------+
TOTAL ASSETS 888,515 | 1,066,082 |
| |
| |
| |
EQUITY AND LIABILITIES | |
| |
Equity attributable to equity holders of the parent | |
| |
Issued capital 17,966 | 17,966 |
| |
Share premium 419,563 | 419,563 |
| |
Reserves 143,340 | 161,438 |
=----------------------------------------------------------------+-------------+
TOTAL EQUITY 580,869 | 598,967 |
| |
| |
| |
Non-current liabilities | |
| |
Interest-bearing loans and borrowings 128,866 | 234,171 |
| |
Derivative financial instruments 1,156 | 4,965 |
| |
Provisions for other liabilities and charges 204 | 2,536 |
| |
Retirement benefit obligations 1,677 | 3,800 |
| |
Deferred income (grant) 4,163 | 4,475 |
| |
Deferred tax liability 23,784 | 34,732 |
=----------------------------------------------------------------+-------------+
159,850 | 284,679 |
| |
Current liabilities | |
| |
Trade and other payables 84,571 | 94,469 |
| |
Interest-bearing loans and borrowings 31,452 | 43,751 |
| |
Derivative financial instruments 300 | 918 |
| |
Taxes payable 34 | 158 |
| |
Provisions 4,374 | 5,015 |
| |
Accrued charges 26,444 | 36,901 |
| |
Deferred income (grant) 621 | 1,224 |
=----------------------------------------------------------------+-------------+
147,796 | 182,436 |
=----------------------------------------------------------------+-------------+
TOTAL LIABILITIES 307,646 | 467,115 |
=----------------------------------------------------------------+-------------+
TOTAL EQUITY AND LIABILITIES 888,515 | 1,066,082 |
Consolidated Cash Flow Statement For the year ended|For the year ended|
| |
31 March 2011| 31 March 2010|
-------------------+------------------+
(EUR000)| (EUR000)|
| |
Unaudited| Unaudited|
| |
Operating activities | |
| |
Loss before tax from continuing | |
operations (20,693)| (11,742)|
| |
Loss before tax from discontinued | |
operations 1,119| -|
| |
Non cash | |
| |
Depreciation and impairment of property, | |
plant and equipment 46,582| 40,609|
| |
Amortization and impairment of intangible | |
assets 1,408| 1,277|
| |
(Gain)/Loss on disposal of property, | |
plant and equipment 2| (181)|
| |
Finance revenue (4,256)| (1,474)|
| |
Finance costs 16,863| 16,962|
| |
Movements in provisions, pensions and | |
government grants (4,767)| 485|
| |
Employee benefit expense 1,075| 685|
| |
Receipt of government grants, not | |
included in movement of government grants -| (5,170)|
| |
Working capital adjustments | |
| |
(Increase)/decrease in trade receivables 36,278| 60,177|
| |
(Increase)/decrease in other receivables (2,646)| 4,358|
| |
(Increase)/decrease in deferred charges 1,755| (3,685)|
| |
(Increase)/decrease in inventories 49,633| 47,005|
| |
Increase/(decrease) in trade and other | |
payables (9,898)| (66,293)|
| |
Increase(decrease) in accrued liabilities (11,060)| 1,136|
=-----------------------------------------------------------+------------------+
Income tax paid (871)| (2,136)|
=-----------------------------------------------------------+------------------+
Net cash flows from operating activities 100,522| 82,013|
| |
Investing activities | |
| |
Proceeds from sale of property, plant and | |
equipment -| 313|
| |
Purchase of property, plant and equipment (23,425)| (79,321)|
| |
Purchase of intangible assets (888)| (1,294)|
| |
Disposal of subsidiary, net of cash | |
disposed 51,224| -|
| |
Gain on disposal of discontinued | |
operations (2,004)| -|
| |
Interest received 3,207| 1,514|
| |
Receipt of government grants 69| 6,035|
=-----------------------------------------------------------+------------------+
Net cash flows used in investing | |
activities 28,183| (72,753)|
| |
Financing activities | |
| |
Interest paid (14,695)| (14,483)|
| |
Repayment of borrowings (135,000)| (43,516)|
| |
Proceeds from borrowings 17,844| 71,359|
=-----------------------------------------------------------+------------------+
Net cash flows from financing activities (131,851)| 13,360|
| |
Net increase in cash and cash equivalents (3,146)| 22,620|
| |
Net foreign exchange difference (5,615)| 108|
| |
Cash and cash equivalents at 1 April 149,124| 126,396|
=-----------------------------------------------------------+------------------+
Cash and cash equivalents at 31 March 140,365| 149,124|
FINANCIAL CALENDAR
Financial Year 2011
(Financial Year ending 31 March 2011)
FY 2011 Full Year Results
+-------------------------+----------------------------------------------------+
|16 May 2011 |Press Release Annual Results FY 2011 |
+-------------------------+----------------------------------------------------+
| |Annual Financial Report Financial Year 2011 |
|31 May 2011 |available |
+-------------------------+----------------------------------------------------+
|30 June 2011 |Annual Shareholders' Meeting Financial Year 2011 |
+-------------------------+----------------------------------------------------+
Financial Year 2012
(Financial Year ending 31 March 2012)
+-------------------------+----------------------------------------------------+
|Q1 2012 Update | |
+-------------------------+----------------------------------------------------+
|25 July 2011 (*) |Interim Management Statement Q1 2012 |
+-------------------------+----------------------------------------------------+
|1H 2012 Results | |
+-------------------------+----------------------------------------------------+
|27 October 2011 (*) |Press Release First Half 2012 Results |
+-------------------------+----------------------------------------------------+
|Q3 2012 Update | |
+-------------------------+----------------------------------------------------+
|9 February 2012 (*) |Interim Management Statement Q3 2012 |
+-------------------------+----------------------------------------------------+
|FY 2012 Full Year Results| |
+-------------------------+----------------------------------------------------+
|16 May 2012 (*) |Press Release Annual Results Financial Year 2012 |
+-------------------------+----------------------------------------------------+
| |Annual Financial Report Financial Year 2012 |
|29 May 2012 (*) |available |
+-------------------------+----------------------------------------------------+
|28 June 2012 |Annual Shareholders' Meeting Financial Year 2012 |
+-------------------------+----------------------------------------------------+
(*) publication dates are subject to final confirmation
For more information
+----------------------------------------------------------------------------+
|Investor Relations |
+------------------------------------------------------------+---------------+
|Hans Ooms |+32 3 450 58 62|
|De Villermonstraat 9 | |
|2550 Kontich - Belgium | |
|hans.ooms.ir@hansentransmissions.com | |
|http://www.hansentransmissions.com/en/investorrelations.html| |
+------------------------------------------------------------+---------------+
+---------------------------------------------+
| Maitland |
+--------------------------+------------------+
| Sarah Hamilton | +44 20 7395 0464 |
| shamilton@maitland.co.uk | |
+--------------------------+------------------+
About Hansen Transmissions
Hansen Transmissions International NV is an established global wind turbine
gearbox designer, manufacturer and supplier, with a leading position (by MW
supplied) in the wind turbine gearbox market.
The Company supplies gearboxes to the world's major manufacturers of gear-driven
wind turbines throughout the world. Hansen's wind energy activities have
established dedicated international service networks. In addition to its
principal state-of-the-art manufacturing facilities located in Lommel, Belgium
Hansen has a production plant for wind turbine gearboxes in Coimbatore, India
and an assembly and testing plant for the Chinese market, located in Tianjin,
China. Hansen has currently wind turbine gearbox manufacturing capabilities of
7,600 MW per annum. Strong in-house R&D operations maintain Hansen's
technological leadership and the Company employs approximately 1,400 people
worldwide.
http://www.hansentransmissions.com/en/
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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 designer, manufacturer and
supplier imply that it faces a number of risks and uncertainties. If any or a
combination of the principal risks and uncertainties, as outlined below, were to
materialize, it could 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 continues to face 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 are facing
difficulties in attracting equity and/or debt capital or other means of
financing capital investments.
Recognizing the challenge of the current business environment, Hansen has
implemented strategies aimed at maintaining its position as a leading and
preferred supplier of gearboxes for wind turbine applications and has been
successful in expanding its customer base.
- 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, including the
local sourcing of raw materials and components, is part of our strategy to
supply our products worldwide at competitive conditions. Additionally, Hansen
has invested in the development of market intelligence and local sales forces in
the emerging markets.
- 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 continues to
aim for highly reliable and high-quality products and, for the financial year
2011, has maintained its budget for research and development at approximately
3% to 4% of revenue.
- 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 - such as Hybrid and Integrated drivetrain
solutions.
Operational risks
- 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.
Hansen, through its Supplier Quality Assurance programme, continuously monitors
its suppliers in terms of quality, cost and timely delivery.
In the event that Hansen becomes subject to product liability or warranty claims
caused by defective raw materials or intermediate components supplied by third
parties it will attempt to seek compensation from the relevant supplier.
However, if a claim cannot be asserted against a supplier, or claims cannot be
recovered from either the relevant supplier or from Hansen's insurer, Hansen's
financial condition and results of operations could be materially adversely
affected.
In response to these risks, Hansen has a standing practice whereby its legal
department systematically screens both client and supplier contracts for the
presence of balanced clauses in respect of product liability and warranties.
Additionally, Hansen is buying appropriate product liability insurance coverage
from the international insurance market and is actively investigating on a
regular basis if additional transferring of product liability and warranty
claims to insurance or other financial product is required and possible at an
affordable cost.
- Hansen depends on a limited number of customers in the wind turbine market. A
customer 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
towards the development of innovative gear technology and bearing-application
technology aimed at the production of reliable and quality gearboxes at
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.
Recognizing the importance of potential product liability and/or warranty
claims, Hansen continues to invest substantial resources in R&D in order to
maintains its quality and reliability standard. Quality management systems,
certified under ISO 9001 standards, are applied to R&D, production and assembly
activities. Thorough and systematic quality controls are in place at both
Hansen's production and assembly sites, as well as at its suppliers.
- 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.
To counter these risks, Hansen is actively seeking both dual and local sourcing
of raw materials and intermediate components. Additionally, Hansen seeks to
include in both client and supplier contracts balanced clauses in respect of
price evolution and adjustment.
- 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. Such failure could have an impact on its ability to design and
produce wind turbine gearboxes.
At regular intervals, Hansen conducts benchmark studies on the wages and on the
employee benefits of its employees. We have also engaged in a multi-year
campaign to ensure that each employee will enjoy recognition by reward, which
implies individual objective setting and appraisal. Additionally, Hansen will
continue to increase the number of employees benefiting from a career and
succession planning. Finally, in recognition of the importance of employee
engagement, Hansen has improved its engagement monitoring of all employees
through an on-line survey campaign.
Financial risks
- Hansen could be adversely affected by foreign exchange rate fluctuations
resulting from the translation of revenues and costs 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 a substantial
portion of their costs being created in weaker currencies.
In response to the foreign exchange risk, Hansen aims to include a currency
adjustment mechanism in its client contracts. In respect of the local supply
contracts in non-euro currencies, the Company aims to maximize on natural
hedging to offset any negative consequences of currency fluctuations.
- 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. The Group's policy is to manage its
interest cost by entering into interest rate derivatives, which are designated
to hedge underlying interest bearing loans and borrowings.
- 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 were not to 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 implemented environmental management systems at all production and
assembly sites by the end of the current financial year, ensuring that
environmental objectives as well as compliance with all relevant legislation are
achieved. Creating a healthy and safe working environment for all of Hansen's
employees is a key element of its Social Policy, engaging employees and
stakeholders in a cycle of planning, execution and systematic follow-up,
monitoring and improvement of health & safety objectives.
- 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.
Maintaining and expanding its portfolio of patents is a key element in Hansen's
strategy. New achievements in terms of products or manufacturing processes are
screened for patent registration opportunities. At the same time, Hansen,
assisted by external consultants, is screening the market for any intellectual
property infringements on its patent portfolio.
- 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
and restrict Hansen's ability to offer its services and products in a
competitive manner, thus having a detrimental impact on its business and
reputation.
Hansen relies upon both internal resources, being its legal department, and
external resources, such as law firms, tax advisors and other consultants, to
anticipate any changes in legislative and regulatory requirements that may have
an impact on our operations.
- Hansen's activities imply that it could be subject to risks relating to legal
or regulatory proceedings. Occasionally, we become subject to proceedings of
various natures.
Hansen aims to be fully compliant with any relevant law or regulation, as well
as the terms of any contract it enters into. To that effect both its legal
department, and - where required - external resources are engaged to achieve
this. The above can however not exclude that the outcome of any legal or
regulatory proceeding could have a negative impact on Hansen's results or
reputation.
#
Press Release (PDF):
http://hugin.info/139494/R/1516010/452322.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Hansen Transmissions International NV via Thomson Reuters ONE
[HUG#1516010]
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