TKH halfjaarbericht EN def
15-05-2003
11:54
Pagina 3
interim report 2002
TKH halfjaarbericht EN def
15-05-2003
11:54
Pagina 4
TKH results in line with expectations
• Turnover and profit down due to exceptionally low
level of investment in the telecommunications sector
combined with lower price levels for optical fibre.
• Turnover down to € 192 million, from € 317 million,
of which € 50 million due to divestments.
• Operating result of € 3.8 million negative.
• Net profit after extraordinary gains and losses
€ 4.7 million.
Outlook
• No sign of recovery in the telecommunications market
in the short term.
• As a result of measures taken and to be taken, it is
expected that the result before extraordinary gains and
losses for the 2nd half of 2002 will improve on 1st half
2002.
• In view of the uncertain economic developments, it is
too early to make further predictions with respect to
the result for the full year 2002.
Financial developments
In the first half of 2002, organic turnover was down 28%
compared with the first half of 2001. Including divestments,
turnover was down 40% at € 192 million, compared with
€ 317 million a year earlier.
The operating result dropped to a loss of € 3.8 million,
compared with a profit of € 25.7 million in the first half of
2001.
The drop in turnover and profit was due to the downturn in
the telecommunications segment.
The net result before extraordinary gains and losses dropped
to a loss of € 5.5 million, from a profit of € 14.9 million.
Net profit improved due to an extraordinary gain resulting
from divestments (€ 10.2 million).
Net profit after extraordinary gains and losses came in at
€ 4.7 million, from € 14.9 million in 2001. The earnings per
share (after extraordinary items) stood at €0.58 per share,
from earnings per share of € 1.86 in 2001.
Financial expenses fell to € 2.7 million, from € 3.9 million
a year earlier, due to a reduction of the working capital and
divestments.
The balance sheet was further boosted by positive cash flow
of € 21 million. The solvency rate increased to 50.5%.
The number of employees as at 30 June 2002 amounted to
2,520 (June 30 2001: 2,948).
Developments per group
Cable group
The organic turnover of the cable group dropped by 43% in the
first half. Turnover including divestments (PIC) was down 47%
at € 92 million, from € 174 million.
The drop in organic turnover in cable and components for
telecommunications networks was due to the exceptionally low
level of investment in the telecommunications sector and was
the main reason behind the drop in turnover of the cable group
as a whole. The reluctance to invest among telecommunications companies increased in the first half of the year. The
global market volume in optical fibre dropped by more than
50% compared to the first half of 2001.
Turnover in the specialty cable segment was down slightly, while
turnover in the energy and electro-technical sector stabilised at
last year’s level.
The operating result fell to a loss of € 3.8 million, from a profit
of € 17.7 million in the year-earlier period due to low capacity
utilisation for copper telecom cable, optical fibre and optical
fibre cable, as well as considerable drops in prices for optical
fibre.
In the period under review, the divestment and partial closure
of PIC in the United Kingdom was realised, and measures have
been taken for further cost reductions.
Technical trading group
The organic turnover of the technical trading group dropped
by 22% in the first half. Turnover including divestments
(among others EAS) was down 46% at € 67.5 million, from
€ 123.9 million.
Within the technical trading group, turnover also fell primarily
in the ICT and telecommunications segment, with the drop
most notable in the Netherlands and Poland. Turnover in
Scandinavia remained stable.
TKH halfjaarbericht EN def
15-05-2003
11:54
Pagina 1
TKH’s constant attention to
research and development
ensures that it has an
advanced range of products
and services.
Operating profit fell to € 1.9 million, from € 10.1 million,
partly due to the loss of a considerable part of the turnover
in the outdoor telecommunications segment and because of
divestments.
TKH initiated a number of interesting developments in the
first half of the year, including:
• the acquisition of a large contract in south-east Asia for the
construction of a telecommunications network.
• an agreement with KPN Telecom Retail BV to be preferred
supplier for the delivery of telephones, as well as domotica
products under the brand name KPN Telecom.
• the introduction of a new domotica solution by Isolectra
under the name “Realive”.
Machinery group
The turnover of the machinery group increased 16% to
€ 32.8 million, from € 28.2 million. Operating result rose to
€ 1.2 million, from € 0.2 million.
The positive developments of turnover and result were due
to the tire building machines segment.
Outlook
The reluctance to invest by the telecommunications sector
will not change in the short term. We believe the drop in
optical fibre prices has bottomed out.
Based on the current order portfolio at the technical trading
group and the machinery group, turnover will increase compared with the first half of 2002.
Profile
N.V. Twentsche Kabel Holding (TKH) is an internationally
operating group of companies active as a supplier of systems
and networks in the information and telecommunication
technology and electrical engineering.
The company focuses on ICT systems and networks, related
services and the production of and trade in specialty cable.
TKH achieves its goal of supplying optimum service to its
clients through value added services like system design,
one-stop shopping and turnkey deliveries.
TKH has concentrated its activities in two core groups: the
cable group and the technical trading group. An integrated
approach of activities is emphasised by the market groups
telecom, electrical engineering and specialty cable. This safeguards the complementary nature of the two core groups.
Continuous attention for research and development ensures
an advanced range of products and services. These are sold
mainly in north-western and eastern Europe. The company
also has a significant and growing market position in Asia.
In 2001, TKH booked turnover of € 586 million and net profit,
before extraordinary gains and losses of € 18.6 million with
a workforce of 2,878.
Financial Calendar
14 March 2003
22 May 2003
5 September 2003
Publication of annual figures 2002
Annual General Meeting of Shareholders
Publication of half-year figures 2003
We will further reduce cost levels in the second half of 2002.
TKH expects, that as a result of the measures taken and to
be taken, the result before extraordinary items for the second
half of 2002 will show an improvement compared with the
first half 2002.
In view of the uncertain economic developments, TKH cannot
make further statements about the results for the full year
2002 at the moment.
Haaksbergen, 5 September 2002
Executive Board
N.V. Twentsche Kabel Holding
Spinnerstraat 15
P.O. Box 5
7480 AA Haaksbergen
the Netherlands
Tel. +31 53 573 29 00
Fax +31 53 573 21 80
E-mail [email protected]
Internet www.tkh.nl
TKH halfjaarbericht EN def
15-05-2003
11:54
Pagina 5
Consolidated
profit and loss account
for the first half-year 2002
2001
2002
x 1,000 euros
Turnover
1
1st half-year
2001
1st half-year 2nd half-year
191,655
317,279
268,474
and subcontracted work
114,885
194,425
166,941
Personnel expenses
49,004
60,720
57,451
9,714
10,630
9,632
Other operating expenses
21,808
25,765
26,391
Total operating expenses
195,411
291,540
260,415
Operating result
-3,756
25,739
8,059
Financial income and expenses
-2,673
-3,941
-3,359
-6,429
21,798
4,700
-968
6,871
972
-5,461
14,927
3,728
35
-77
Cost of raw materials, consumables
Depreciation
Profit from ordinary operations
before tax
Tax on profit from ordinary
operations
Profit before extraordinary income
and expenses
Minority interest
Extraordinary income and expenses
Net profit
10.164
69
-9,000
4,738
14,850
-5,203
0.58
1.86
-0.64
8,116
7,999
8,112
Cable group
92,210
174,000
135,024
Technical trading group
67,546
123,903
115,494
Machinery group
32,806
28,187
24,675
-907
-8,811
-6,719
191,655
317,279
268,474
-3,827
17,690
3,195
1,871
10,128
8,209
Net profit per outstanding share
Number of outstanding ordinary shares
(x 1,000)
Per group
Turnover
Intercompany deliveries
Total turnover
Operating result
Cable group
Technical trading group
1,163
180
489
Other
-2,963
-2,259
-3,834
Total operating result
-3,756
25,739
8,059
Machinery group
1 Turnover incl. change to inventory finished products, work in progress and other operating income.
TKH halfjaarbericht EN def
15-05-2003
11:55
Pagina 6
Consolidated balance sheet
as at 30 June 2002
30-06-02
31-12-01
30-06-01
185,153
197,269
178,264
5,646
5,429
-
550
771
538
191,349
203,469
178,802
Inventory
108,090
124,192
120,207
Receivables
100,244
109,099
133,784
8,721
8,100
7,293
217,055
241,391
261,284
408,404
444,860
440,086
206,198
204,319
197,633
32
34
389
9,621
22,468
8,209
x 1,000 euros
Assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Financial fixed assets
Total Fixed assets
Current assets
Cash and cash equivalents
Total Current assets
Total
Liabilities
Shareholders’ equity
Minority interest
Provisions
Long-term debts
73,087
70,132
54,887
Short-term debts
119,466
147,907
178,968
Total
408,404
444,860
440,086