Presentation of 2 - Hugin Onlinereports.huginonline.com/829847/92523.pdfVPS as at 07.08.01...

Presentation of 2nd quarter 2001

2

Highlights 2nd quarter 2001

Revenue down 19% 375 MNOK

EBITDA, before non-recurring items 1 MNOK

Non-recurring items 140 MNOK

Goodwill write-down 480 MNOK

Liquid funds end of Q2 301 MNOK

Two new Group Companies

BPCP, China (previously associated)

Tripod, Sweden

3

Key FiguresContinuing operations

Amounts in Mill NOK

2001 2000 Change 2001 2000 ChangeRevenue 886.0 812.4 9 % 374.6 463.0 -19 %EBITDA 73.4 110.5 -34 % 1.1 71.9 -98 %EBIT 39.3 81.6 -52 % -17.0 57.4Profit before tax 28.0 83.7 -67 % -25.0 57.9Net profit, before non-recurring items 18.5 62.8 -71 % -16.0 45.4Goodwill write-down -480.0 -480.0Other non-recurring items -139.7 -139.7Tax on non-recurring items 80.9 80.9Net profit -520.3 62.8 -554.7 45.4Basic EPS (NOK) before non-recurring items 0.62 -0.76Basic EPS (NOK) -21.40 2.47 -22.78 1.81Cash EPS (NOK) before non-recurring items 1.58 -0.26Cash EPS (NOK) -0.78 3.32 -2.63 2.25

1st Half Year 2nd Quarter

4

Goodwill

Write-down is mainly related to goodwill in PCP

MNOKPer 30.06.2001 563Write-down -480

Remaining 83Tax asset, discounted 40

5

Employees

242

422

7897

197

379

90

171145

303

90

166

0

100

200

300

400

Americas Europe Asia/Pacific China

Q1 Q2 Plan Q4

Including new company in Q2: 102

6

Inventories

Increase in Q2 96 MNOK (excl. new companies, 13 MNOK)Reached the highest levelReduction from Q3 onwardsReduced deliveries lead to lower turnover

Increased provisions 69 MNOK

7

Accounts receivable

Reduction in Q2 114 MNOK (excl. new companies, 47 MNOK)Good progress in collection3 customers in liquidationLosses will incur

Increased provisions 40 MNOK

8

Non-recurring items

MNOKTerminations 30.7Inventory provisions 69.1Accounts receivable provisions 39.9

Total 139.7

9

Working capital

Excl. non-recurring items

30.06.01 30.03.01 ChangeNew

companies Net change

Inventories 471 362 109 13 96

Trade receivables 460 527 -67 47 -114

Trade payables -224 -226 2 -17 19

Net working capital 707 663 44 43 1

10

Cash

30.06.01 30.03.01 Change

Cash 83 64 19Overdraft -46 -34 -12Net cash 37 30 7Overdraft facilities 264 152 112

Liquid funds 301 182 119

New long-term financing 105Share issue options 11Dividend -24Acquisitions -32Cash in new companies -10Net working capital -1Capex -10Cash earnings, EBITDA + Fin.items -7Tax and other -25Total 7

11

Quarterly gross margin 2000-2001

40.5 % 41.9 %

35.9 %38.9 % 39.6 %

33.9 %

0 %

10 %

20 %

30 %

40 %

50 %

Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01

12

Quarterly operating cost 2000-2001

122

130136

127122103

4

0

40

80

120

160

Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01

Amounts in Mill NOK

New companies

13

Balance sheet

Amounts in MNOK

Goodwill

Other fixed assets

Total fixed assets

Inventories

Short term receivables

Cash and cash equivalents

Total current assets

Total assets

Share capital

Other equity

Minority interests

Total equity

Long-term liabilities

Bank overdraft

Short term liabilities

Total current liabilities

Total equity and liabilities

Equity ratio

31.12.00

541.6

125.2

666.7

258.7

504.0

128.3

891.1

1 577.8

24.3

944.6

24.3

993.1

140.9

13.3

410.5

423.8

1 557.8

63.8 %

31.06.01

83.1

208.6

291.7

401.9

455.5

83.0

940.4

1 232.1

24.5

470.1

23.7

518.2

240.4

46.1

427.4

473.5

1 232.1

42.1 %

31.03.01

546.3

139.1

685.4

362.0

571.5

63.6

997.1

1 682.5

24.5

1 013.4

23.6

1 061.4

138.7

33.8

448.6

482.4

1 682.5

63.1%

14

Global sale 2nd quarter

Africa1 % Asia/Pacific

20 %

Europe35 %

Americas35 %

131198

0100200300

2001 2000

Amounts in Mill NOK

China9 %

4 10

100200300

2001 2000

130195

0100200300

2001 2000

74 410

100200300

2001 2000

36 280

100200300

2001 2000

GR: -33 %

GR: 80 %

GR: 29 %GR: -34 %

GR: 300 %

15

Global sale per 2nd quarter

Africa1 % Asia/Pacific

16 %

Europe34 %

Americas43 %

304 340

0100200300400

2001 2000

Amounts in Mill NOK

China6 %

5 20

100200300

2001 2000

380 356

0100200300400

2001 2000

14074

0100200300

2001 2000

57 400

100200300400

2001 2000

GR: 7 %

GR: 89 %

GR: 43 %GR: -11 %

GR: 150 %

16

Revenue per quarter

Amounts in Mill NOK

238 216

349

511

222 232

463

375

224

300

543

183

370

538

0

100

200

300

400

500

600

1998 1999 2000 2001Q1 Q2 Q3 Q4

17

EBITDA per quarter

Amounts in Mill NOK

29

12

39

72

1915

72

1

17

35

68

9

47

73

0

10

20

30

40

50

60

70

80

1998 1999 2000 2001Q1 Q2 Q3 Q4

Excl. non-recurring items in Q2 2001

18

Order intake per quarter

Amounts in Mill NOK

201243

422

506

191

274

640

276237

360

533

179

329

567

0

100

200

300

400

500

600

700

1998 1999 2000 2001Q1 Q2 Q3 Q4

Excl. cancelled orders in Q2 2001; 69 MNOK

19

Order backlog per quarter

Amounts in Mill NOK

164 168

302

492

133

210

480

324

146

271

469

141

230

498

0

100

200

300

400

500

600

1998 1999 2000 2001Q1 Q2 Q3 Q4

20

15 largest customers 2001

NextelMaxis CommunicationsAllegianceN G Bailey NokiaMotorolaWorldCom AlcatelIpsarisEnergy Products PortastorGlobal SwitchGuangzhou PTT Level 3PRTEM

Share of total revenue: 46 %

21

Europe

Eltek Sales and Service office established in St. Petersburg, Russia

High activityAcquisition of Tripod, Sweden

Small installation company with well established market relations

Growth opportunity: UMTS Deliveries startedMajor roll-out rescheduledEltek well positioned

22

China and Asia/Pacific

Acquired majority stake in Beijing PCPDistribution Platform for the important Northern China MarketIncreases competitiveness vs local government backedcompetitors

Established Eltek Sales and Service centre in Manila, PhilippinesIncreased sales to Silcar, but progressing slowly

23

Americas

Market still challenging Growth not expected until Q1 2002Major restructuring in progress

24

OEM

Awarded major development contracts with two leading telecom manufacturers

High volume potentialNew product launches, expected end of the year

Shorter time to OEM marketGeneral high activity

25

Share performance

Eltek Share vs OSE Total Index and IT-index

as per 07.08.2001

0

100

200

300

400

500

08.07.98 08.11.98 08.03.99 08.07.99 08.11.99 08.03.00 08.07.00 08.11.00 08.03.01 08.07.01

Eltek ASA Total index IT index

NOK

26

Number of shareholders

761 624

2 070

3 1793 610

0500

1000150020002500300035004000

year end1998

year end1999

year end2000

31.03.01 30.06.01

27

Largest shareholders per 31 July 2001

Shareholders registered in

VPS as at 07.08.01

Shareholder Number of shares % of totalCC Industries 7 480 828 30.6 %Eltek Holding 4 097 700 16.8 %Credit Agricole Indosuez 1 546 873 6.3 %Edward Weil Jr 982 108 4.0 %Skandinaviska Enskilda Banken 696 600 2.8 %Vital Forsikring 559 300 2.3 %Carnegie 450 900 1.8 %Tine Pensjonskasse 444 000 1.8 %Aksjefondet Gambak 400 000 1.6 %Chris Seyer III 298 099 1.2 %Storebrand Livsforsikring 287 700 1.2 %Merita Bank 231 900 0.9 %Stephen Griffitts 227 326 0.9 %Dexia Banque Internationale a Lux 225 000 0.9 %DnB Investor (sev. accounts) 179 680 0.7 %RasmussenGruppen 143 000 0.6 %Gustav Walter Invest 139 900 0.6 %Avanse Forvaltning (sev. accounts) 127 400 0.5 %Tony Cosentino 108 755 0.4 %Weil Family Trust 106 229 0.4 %